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Home My WebLink About10-16-19 BID Minutes Downtown Business Improvement District Board Meeting Minutes October 16, 2019 Attending: Jolee Barry, Eric Bowman, Ileana Indreland, Erik Nelson, Susan Neubauer, Eric Sutherland, Jeff Krauss, Emily Cope, Chris Naumann Absent: Mike Basile Public Comments: David Loseff began by talking about a street closure for an event that may be happening on October 25, 2019 on South Willson. He has written a formal petition to the city commission to express his concern with shutting down streets for events like these as it effects downtown businesses. He asked the BID board to consider taking a position on street closures. Eric Bowman said the board would look at the rules regarding street closure applications at a future meeting. Minutes ACTION: Eric Bowman moved to approve the September minutes. Jolee Barry seconded the motion. All voted in favor. Finance Report No finance report was presented. Executive Directors Report No executive director’s report was presented. Discussion and Decision Item 2020 BID Renewal Chris presented the boundary map that outlines current BID boundary, proposed expansion of BID boundary, and proposed zone 1 and zone 2 boundaries. The board discussed the possibilities of expanding to the north, south, east, and west of the current BID boundary. Of the potential new areas considered, most of the properties were commercial with some residential. Chris summarized his conversations with property owners that may be included in the BID expansion. The board discussed how the expansion and the two zones would affect the assessment rate. Chris provided a spreadsheet of the BID annual assessment comparison from the last 10 years showing a 53% decrease in the assessment rate since 2011. ACTION: Ileana Indreland moved to approve the BID boundary expansion to include the properties south of Lamme between North Black Avenue and City Hall and also include the properties immediately adjacent to East Babcock Street between South Black and South Wallace Avenues. Erik Nelson seconded the motion. All voted in favor. The board continued the discussion of multiple assessment and service zones. The continued conversation from the September board meeting is that zone 1 would pay X rate and receive 100% of the programs and services provided by the BID. The outer zone, or zone 2, would pay a lesser rate and receive “half” or not as many services and programs as zone 1. Jolee Barry commented that zone 2 would not be receiving as many services as zone 1 thus paying a lower assessment rate, although the cost of the programs that would be provided in zone 2 make up most of the expenses in the annual budget. The board agreed that it would be best to have one assessment rate apply to the entire district with the goal of extending the services outward to cover all BID properties. ACTION: Susan Neubauer moved to approve one assessment rate throughout the district and create a timeline to phase in services across the entire district Eric Bowman seconded the motion. All voted in favor. Chris presented a spreadsheet for reserve projections for FY20-FY25. Which the board agreed will be discussed further at future board meetings. The discussion continued to set an assessment rate or total assessment amount for the first year of the new district. Eric Bowman suggested locking in a set assessment rate and lock it in for the next 10 years to not exceed X cents per dollar. The board would be able to set the total assessment each year based on the changing demands for services. Chris noted that the assessment rate would fluctuate each year based on taxable value adjustments and new taxable value being added to the district. Chris presented a proposed FY21 budget based off a $175,000 assessment showing an increase in payroll expenses for the maintenance staff and program expenses. Chris then presented a spreadsheet showing a property of each BID board member reflecting $155,000 vs. $165,000 vs. $175,000 total assessment amounts. The board agreed that the demands for more services warrant setting the FY2021 at $175,000. They also agreed to include the provision that the annual assessment rate would not exceed $0.03 per dollar of taxable value. ACTION: Jolee Barry moved to approve the FY2021 total assessment amount of $175,000, and the rate is not to exceed 3 cents per taxable dollar value. Erik Nelson seconded the motion. All voted in favor. Meeting was adjourned at 1:45 pm Downtown 2020 BID Boundary Options FISCAL YEAR TAX. VALUE ASSESSMENT RATE*PER $10K**DECREASE*** 2020 6,263,000$ 126,000$ 0.0201 201$ -53% 2019 4,567,534$ 126,000$ 0.0276 276$ 2018 4,204,204$ 126,000$ 0.0300 300$ 2017 3,700,506$ 120,000$ 0.0324 324$ 2016 3,518,855$ 120,000$ 0.0341 341$ 2015 3,236,421$ 120,000$ 0.0371 371$ 2014 3,140,950$ 120,000$ 0.0382 382$ 2013 2,970,220$ 114,000$ 0.0384 384$ 2012 2,754,222$ 114,000$ 0.0414 414$ 2011 2,652,520$ 114,000$ 0.0430 430$ * Assessment dollars paid per dollar of taxable value **Assessment paid per $10,000 of taxable value ***Percentage decrease of assessment paid per taxable value since FY2011 NOTE: over last decade the total assessment increased 11% while the assessed rate decreased 53% DOWNTOWN BID ANNUAL ASSESSMENT COMPARISON BID Reserve Projections FY2020--FY2025 Current Approach FY20 FY21 FY22 FY23 FY24 FY25 Total Reserve 95,000 80,000 66,000 66,000 51,000 51,000 Operating Reserve 50,000 50,000 50,000 50,000 50,000 50,000 Balance 45,000 30,000 16,000 16,000 1,000 1,000 Capital Expenses - (14,000) - (15,000) - - Project Expenses (15,000) - - - - - Balance 30,000 16,000 16,000 1,000 1,000 1,000 Total Reserve 51,000 Total Expenses (44,000) Alternative Approach FY20 FY21 FY22 FY23 FY24 FY25 Total Reserve 95,000 Operating Reserve 31,350 36,350 41,350 46,350 51,350 51,350 Expenses - - - - - Contribution 5,000 5,000 5,000 5,000 - Capital Reserve 31,350 36,350 27,350 32,350 22,350 27,350 Expenses - (14,000) - (15,000) - Contribution 5,000 5,000 5,000 5,000 5,000 Project Reserve 31,350 21,350 26,350 11,350 16,350 1,350 Expenses (15,000) - (20,000) - (25,000) Contribution 5,000 5,000 5,000 5,000 10,000 Total Reserve 94,050 94,050 95,050 90,050 90,050 80,050 57% Total Expenses (89,000) 102% FY21 Sample Budget with Total Assessment $175,000 APPROVED ESTIMATED FY2020 FY2021 Income BID Assessment 126,000 175,000 39% Contract Income 17,000 17,000 Interest Income 100 100 Mobile Vending Fees 1,750 2,500 Flower Sponsorshihps 9,000 9,000 Christmas Light Sponsorships 4,500 4,500 Streetlamp Banners 10,000 10,000 Total Income 168,350$ 218,100$ 30% Expenses 37% Management Fee 79,560 81,151 2% Total Expenses 79,560$ 81,151$ 2% Payroll Expenses Maintenance Staff 25,000 32,500 30% Taxes 2,200 2,860 30% Work Comp 1,500 1,950 30% Maintenance Staff--Garage 10,000 10,000 Taxes 750 750 Work Comp 750 750 Total Payroll Expenses 40,200$ 48,810$ 21% Programs New Program(s)20,000 Christmas Lights 2,000 2,000 Christmas Light Spider Repair 1,500 1,500 Christmas Lights Storage 1,000 1,000 New Banners 3,000 3,000 Flower Expenses 22,000 24,000 Flower Water 150 200 Tree Purchases 1,500 2,000 Marketing 2,500 2,500 Maintenance Supplies 2,000 2,600 30% Garbage Bags 1,750 2,275 30% Graffiti Supplies 750 975 30% Graffiti Contracted Removal 3,000 3,900 30% Mule Service & Fuel 1,000 1,300 30% Truck Service & Fuel 2,000 2,100 Truck Insurance 3,250 3,250 Program Contingency 1,000 Total Program Expenses 47,400$ 73,600$ 55% Total BID Expenses 167,160$ 203,561$ 22% NET ASSESSMENT INCOME 1,190$ 14,539$ 4,798$ 4,798$ 4,798$ Operating Reserve Allocation Project Reserve Allocation Captial Reserve Allocation Assessment Rates Reflecting Zone 1/Zone 2 Proposals BID Assessment Projections & Examples for Board Member Properties FY20 Assessment Total $126,000 FY21 Assessment Total $155,000 FY21 Assessment Total $165,000 FY21 Assessment Total $175,000 FY20 Taxable Value Assessment Rate $0.0201 Assessment Rates $0.0276/$0.0134 Assessment Rates $0.0292/$0.0148 Assessment Rates $0.0310/$0.0156 Susan- 317 E Mendenhall Zone 2 21,149$ 425$ 282$ 314$ 330$ Mike- 42 W Main 39,058$ 785$ 1,077$ 1,140$ 1,210$ Ileana- 101 East Main Unit 1 11,085$ 223$ 306$ 323$ 344$ Jolee- 23 S Tracy 6,830$ 137$ 188$ 199$ 212$ Tony- 23 W Babcock 32,618$ 656$ 899$ 952$ 1,011$ Eric B- 36 E Main & 25 S Black 81,810$ 1,644$ 2,255$ 2,387$ 2,535$ Erik N- 33 N Black 3,094$ 62$ 85$ 90$ 96$ Eric S- 44 E Main St 56,354$ 1,133$ 1,554$ 1,644$ 1,746$ Z1 = FY19 rate Z1 = FY18 rate