HomeMy WebLinkAboutFY2022 BID Budget Memo Packet
TO: Downtown BID Board FROM: Emily Cope DATE: May 10, 2021
SUBJECT: FY2022 BID Budget
Attached you will find two versions of the draft FY2022 BID Budget. Version 2 reflects expanding
the flower basket program operating with a second truck, flowers to be installed summer of 2022.
The notes below will provide background and reasoning behind any line items that deviate notably from the FY21 budget. FY22 Budget Version 1 Notes
Income assessment amount of $185,000 reflects a $10,000 increase over FY21’s budget. The estimated assessment rate would be $0.025296 per dollar of taxable value. An increase to the flower sponsorships and streetlamp banners are projected based of FY21 actuals, with a decrease for the Christmas light sponsorships.
Management Fees are proposed to increase 5%, and I combined the two line items from the FY21 budget of “Partnership Administration” and “District Manager” to “Management Fee” as the DBP is restructuring and job titles may change in the near future. Payroll Expenses are budgeted to increase. Downtown continues to be busier year over year with
increased demands of garage cleaning, trash and recycling bins to empty, graffiti removal and general maintenance of the district. Program Expenses are budgeted to be less than FY21 program expenses by about $1,000. There is $15,000 allocated towards the “New Program”, a 5% increase towards DBA support, and
notable increased amounts for Christmas lights storage, maintenance supplies, and vehicle insurance. FY22 Budget Version 2 Notes Income assessment amount of $190,000 reflects a $15,000 increase over FY21’s budget. The
estimated assessment rate would be $0.026701 per dollar of taxable value. An increase to the
flower sponsorships and streetlamp banners are projected based of FY21 actuals, with a decrease for the Christmas light sponsorships. Management Fees are proposed to increase 5%, and I combined the two line items from the FY21
budget of “Partnership Administration” and “District Manager” to “Management Fee” as the DBP is
restructuring and job titles may change in the near future. Payroll Expenses are budgeted to increase. Downtown continues to be busier year over year with increased demands of garage cleaning, trash and recycling bins to empty, graffiti removal and
general maintenance of the district. There is a slight increase in payroll costs over Version 1 for
additional staff time for watering flowers.
Program Expenses compared to FY21 budget are budgeted to be less by about $1,000. There is $15,000 allocated towards the “New Program”, a 5% increase towards DBA support, and notable increased amounts for Christmas lights storage, maintenance supplies, truck service & fuel, and vehicle insurance. There is not a substantial increase to the Flower Expenses line item, the flower baskets to be installed summer of 2022 will fall on the FY23 budget.
Anticipated Capital Expenses Mule-A new mule will need to be purchased in the near future as the current mule is not running as well as it used to. From most recent estimates, mules are currently priced between $10,000-$14,000.
Second Truck- A second truck will be needed to successfully manage the flower basket program if the BID board votes to expand the flower basket boundary. The current truck has reached maximum capacity with the equipment setup. The current truck broke down twice during the summer 2020 season and other arrangements had to be made to transfer all of the equipment to
another truck. We were luckily able to borrow a truck from the City’s Solid Waste division both
times at a moment’s notice. A second truck would be estimated to cost around $15,000. Even if the flower basket boundary is not expanded, a replacement for the current truck will also be needed in the near future.
Flower Basket Expansion Equipment- If the BID board votes to expand the flower basket
boundary, additional equipment will need to be purchased to fill and manage all current streetlamps.
• Light pole arms: estimated $147/each; 11 needed; total estimated cost: $1,617 + shipping.
• 18” hanging wrought iron baskets: estimated $100/each (not planted); 50 needed; total estimated cost: $5,000
• Second watering tank: $500
• Second pump: $650
• An alternative option is a self-watering basket, estimated cost around $100/each. This basket needs to be watered typically 3 times a week.
APPROVED
YEAR END
PROJECTION DRAFT VERSION 1 DRAFT VERSION 2
FY2021 FY2021 FY2022
% change
vs FY21 FY2022
% change vs
FY21
Income
BID Assessment 175,000$ 173,758.64$ 185,000$ 6%190,000$ 9%
BID Assessment--residual -
Contract Income 17,000$ 17,000$ 17,500$ 3%17,500$ 3%
Interest Income 100$ 200$ 100$ 0%100$ 0%
Mobile Vending Fees 2,000$ 500$ 2,000$ 0%2,000$ 0%
Flower Sponsorships 8,000$ 8,000$ 8,500$ 6%9,000$ 13%
Christmas Light Sponsorships 4,000$ 2,850$ 3,500$ -13%3,500$ -13%
Streetlamp Banners 9,000$ 10,500$ 10,000$ 11%10,000$ 11%
Total Income 215,100$ 212,808.64$ 226,600$ 5%232,100$ 8%
Expenses
Management Fee 56,000$ 56,000$ 58,750$ 5%58,750$ 5%
Total Expenses 56,000$ 56,000$ 58,750$ 5%58,750$ 5%
Payroll Expenses
Maintenance Staff 37,500$ 41,000.00$ 45,000$ 20%46,500$ 24%
Taxes 3,300$ 3,400.00$ 3,950$ 20%4,100$ 24%
Work Comp 2,250$ 2,300.00$ 2,700$ 20%2,800$ 24%
Maintenance Staff--Garage 10,000$ 13,000.00$ 13,000$ 30%13,000$ 30%
Taxes 750$ 900.00$ 975$ 30%975$ 30%
Work Comp 750$ 900.00$ 975$ 30%975$ 30%
Total Payroll Expenses 54,550$ 61,500$ 66,600$ 22%68,350$ 25%
Programs
New Program 20,000$ 20,000.00$ 15,000$ -25%15,000$ -25%
Downtown Bozeman Association (DBA) Support 25,000$ 25,000.00$ 26,150$ 5%26,150$ 5%
Christmas Lights 2,000$ 1,810.13$ 2,000$ 0%2,000$ 0%
Christmas Light Spider Repair 1,500$ 723.00$ 1,500$ 0%1,500$ 0%
Christmas Lights Storage 1,000$ 1,233.00$ 1,400$ 40%1,400$ 40%
New Banners 3,000$ 1,515.00$ 3,000$ 0%3,000$ 0%
Flower Expenses 24,000$ 23,500.00$ 25,000$ 4%25,000$ 4%
Flower Water 200$ 213.17$ 250$ 25%300$ 50%
Tree Purchases 2,000$ 2,000.00$ 2,000$ 0%2,000$ 0%
Marketing 2,500$ 2,500.00$ 2,500$ 0%2,500$ 0%
Maintenance Supplies 3,000$ 3,300.00$ 3,500$ 17%3,500$ 17%
Garbage Bags 2,625$ 2,250.00$ 2,625$ 0%2,625$ 0%
Graffiti Supplies 1,125$ 750.00$ 1,125$ 0%1,125$ 0%
Graffiti Contracted Removal 4,500$ 3,000.00$ 4,500$ 0%4,500$ 0%
Mule Service & Fuel 1,500$ 1,250.00$ 1,500$ 0%1,500$ 0%
Truck Service & Fuel 2,100$ 2,100.00$ 2,200$ 5%3,500$ 67%
Vehicle Insurance 3,250$ 3,493.00$ 3,850$ 18%5,775$ 78%
Program Contingency 1,000$ 550.96$ 1,000$ 0%1,000$ 0%
Total Program Expenses 100,300$ 95,188$ 99,100$ -1%102,375$ 2%
Total BID Expenses 210,850$ 212,688$ 224,450$ 6%229,475$ 9%
NET ASSESSMENT INCOME 4,250$ 120$ 2,150$ 2,625$
ACTUAL ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED
FY2021 FY2022 FY2022 FY2022 FY2022 FY2022
Assessment Total 175,000.00$ 180,000.00$ 185,000.00$ 190,000.00$ 195,000.00$ 200,000.00$
Assessment Rate 0.025823$ 0.025296$ 0.025999$ 0.026701$ 0.027404$ 0.028106$
Total Taxable
Value of BID
District % increase YOY
FY22- estimate 7,115,795.00$ 5%
FY21 6,776,948.00$ 7%
FY20 6,317,056.00$ 38%
FY19 4,567,534.00$ 9%
FY18 4,204,204.00$
Notes:
Resolution 5140- The annual assessment rate shall not exceed $0.03 per dollar of taxable value for the duration of the district (2021-2030).
BID FY2022 ASSESSMENT RATE SCENARIOS