Transcript West Humboldt Park SSA Public Meeting

Proposed West Humboldt Park SSA
Public Meeting
Nia Center
May 1, 2013
Outline
 Karen J. Forté, City of Chicago

SSA Overview
 Chet Jackson, WHPDC

Planned 2014 services and budget
 Jewell Walton & Geoff Dickinson, SB Friedman

Financial Analyses
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SSA #49 South Shore &
Special Service Areas (SSAs)
Andrew J. Mooney
Commissioner
What is an SSA?
Special real estate taxing district, not an agency
The City as the taxing body contracts with entities to
administer SSA programs
Funds additional services beyond the City’s general
services in a defined district
Tax % rate applied to EAV generates levy is
DIFFERENT than the tax % increase on a tax bill
from the SSA tax
Enabled through state statute and city ordinance
Called BIDs (Business Improvement Districts) in
other cities; BIDs used worldwide
Achievements
• A good ROI
• Be smarter about sanitation
services
• Help police reduce crime
• Help ex-offender re-entry
• Lease vacancies
• Support manufacturers
• Offer free wifi in SSAs
• Bring new visitors to
Chicago
• Focus community advocacy
& leadership
• Master planning
• Create accountability with
taxing privilege
• Create more desirable
neighborhoods
• Leverage City resources,
both financial and human
Current & New SSAs
•
47 active SSAs
•
40 Service Provider Agencies
•
350+ Commissioners
•
Oldest SSA created in 1977
•
70% increase in last 10 years
•
2013 Budgets = $27 million
CITY OF
CHICAGO
City Council (legislative)
COOK
COUNTY
Assessor
Treasurer
SSA Commission (advisory)
Dept.
of Law
OBM
HED
Other City Depts.
Service Provider
Agreement
Service Provider Agency
(Management/Admin)
Subcontractors
City
Comptroller
SSA Bank
Acct
Typical Authorized Services
maintenance and beautification activities
new construction (e.g. minor streetscape improvements)
 coordinated marketing and promotional activities
 parking and transit programs
area strategic planning
business retention/recruitment initiatives
building rehab activities (façade)
security services
other technical assistance activities to promote community
and economic development.
Work plans assembled annually from this list.
SSA Services Gallery
PUBLIC WAY MAINTENANCE
AESTHETICS Streetscape Maintenance & Landscaping
Advertising & Promotion
Façade Improvements & Pre-Development Costs
Parking /Transit/Accessibility
SSA #10 Back of the Yards
SSA #2 Belmont-Central
SSA #5 Commercial Ave.
Safety & Security
Types of security:
– Foot Patrol
– Surveillance Cameras
– Store Security Rebates
– Cell Phones for CPD
– Coordination w/CAPS
Tenant Retention & Attraction
SSA Outreach & Communications
SSA Fund Mechanism: Common Terms
1)
2)
3)
4)
5)
Tax Rate Cap (citywide average: 0.50%)
Annual Tax Rate (% may vary annually)
EAV (Equalized Assessed Value set by County)
Levy (citywide range: $60k - $1.3 million; ave. $250k)
Carry Over (unspent and/or previous years taxes)
Budget = Levy + Carry Over
Example: $300,000 = $270,000 = $30,000
Levy = Tax Rate x EAV
Example: $270,000 = 0.45% x $60 million (tax cap is 0.50%)
Legislation
Key Legislation for SSAs
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Illinois State Statute: SSA Tax Law
City Ordinances
Open Meetings Act
Freedom of Information Act
Governmental Ethics Ordinance
Legislation – City Ordinances
• Establishment Ordinance
–
–
–
–
–
Boundaries
Term
Tax Rate Cap
Commission: Qualifications, Appointment, Powers
Authorizes HED to enter into Mgmt. Agreement
• Levy Ordinance
– Annual levy and associated tax rate
– Budget (levy + carry-over)
• Management Agreement Ordinance
Illinois Statute: SSA Tax Law
City Ordinances
Open Meetings Act
Freedom of Information Act
Legislation – Service Provider Agreement
•
•
•
•
•
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Empowers agency to deliver services/spend funds
Annual services and budget
Commission approves expenditures and subcontracts
Performance standards
Conflicts of Interest
Contract Default
– HED Commissioner issues notice to improve
– If no improvement, Provider subject to sanctions & termination
Illinois Statute: SSA Tax Law
City Ordinances
Open Meetings Act
Freedom of Information Act
Legislation – Open Meetings Act
• Public Notice
– Beginning each year, prepare and give notice of meeting schedule
– Agenda posted at Agency office and mtg. location 48 hours before mtg.
– 10-day notice in newspaper required for meeting changes
• Meeting Minutes
–
–
–
–
Meeting defined as gathering of majority of quorum of Commissioners
Include meeting date, time and place
Record Commissioners as present or absent
Summary of discussion on all matters proposed, deliberated, or decided, and
record of any votes taken
– Approved minutes open to public within 7 days
– No SSA business can be done via email
Illinois Statute: SSA Tax Law
City Ordinances
Open Meetings Act
Freedom of Information Act
Legislation – Freedom of Information Act
• Public Records
– reports, maps, letters, etc. received by the Commission
– info in SSA related accounts, contracts, etc.
– Exempt: invasions of personal privacy, personnel records, RFP
prep, and actual bids/proposals until awarded
– Service Provider records requested/archived by City
• FOIA Requests
– Submitted to HED or Commission, NOT the Agency
– 7 days to reply
– If info is readily available, provider should cooperate w/o a
FOIA request
From the
Chicago Tribune
Illinois Statute: SSA Tax Law
City Ordinances
Open Meetings Act
Freedom of Information Act
Governance
Governance - SSA Commissions
•
47 SSA Commissions
•
Seats range from 6 to 16; ave. 9
•
Typically meet quarterly
•
Executive seats typically Chair, Secretary,
Treasurer
•
No more than 1/3 of Commissioners should
also serve as Agency Board Members due to
need for recusal – no overlap is recommended
Governance - SSA Commissions
• Establishment Ordinance creates Commissions
–
–
–
–
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Extension of, not separate from, the City
Name of Commissions
Number of seats and term lengths for each commission
Appointment process
Chairperson term lengths
• Establishment Ordinance lists Commission powers
– To Recommend Annually:
• Services
• Budget
• Service Provider
Governance - SSA Commission Bylaws
• Establishment Ordinance authorizes creating bylaws for
procedural operation
• SSA Ordinances supercede SSA bylaws
• Separate/distinct from Agency bylaws
• Negotiable items for each SSA:
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–
–
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Executive seats
Mtg frequency beyond Open Mtgs Act (semi-annually)
Attendance requirements
Voting
Committees
Amending bylaws
Management
Management – Service Providers
• 42 Service Providers (Agencies)
–
–
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30 Chambers or Business Associations
3 Development Corporations
3 Industrial Organizations
5 Human or Civic Service Organizations
• All are non-profits
• Staffing scenarios to manage the SSA:
–
–
–
–
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Executive Director only or part of their time
Shared Agency/SSA staff person
FT SSA Program Manager
Multiple staff support
Outsourced administration
Vetting Overview
• Commissioner
– Dept. of Finance (DOF) Debt checks
– Dept. of Consumer Services (DOCS) Child Support Indebtedness
Checks
– City & County Boards of Ethics Stmts of Financial Interest (mailed to
commissioner after appointment)
– Aldermanic & Mayor’s Office Application Review
• Service Provider
– DOF & DOCS checks on President, Treasurer, Ex. Dir.
– EDS for Agency Organization – list SSA subcontractors
– Proof of Agency Organization in Good Standing with State
2014 SSA Creation Timeline
Winter
2012
June Oct-Dec By Dec Jan
2013
2013
2013 2014
Fall
2014
Making the SSA a reality
Local champions
Vision & Mission for the corridors
Coordinated SSA Development Plan
Financial support (reimbursable SSA cost)
Mission & Vision Statements*
MISSION: The West Humboldt Park Development Council, Alderman Walter Burnett, Jr, and vested
business and property owners, have combined their resources, in order to foster commercial
revitalization, economic development and create a bold vision for the Chicago Avenue corridor and
West Humboldt Park. The goal of West Humboldt Park Special Service Area (SSA) is to position
the Chicago Avenue commercial corridor as a desirable, safe, pedestrian-friendly destination,
which will attract residents and visitors more frequently, attract new businesses and commercial
development, strengthen existing businesses, and improve the overall quality of life.
VISION: The West Humboldt Park Special Service Area is being created to promote and encourage
investment and revitalization along the Chicago Avenue commercial corridor. It is funded through a
special property tax levy to provide supplemental programs and services to the area that are above
and beyond the services provided by the City of Chicago. The general boundary of the SSA
includes both sides of Chicago Avenue between Albany on the east to Karlov on the west.
Planned SSA services include maintenance programs, marketing campaigns, security, and other
improvements that would benefit the commercial district. These services support efforts to promote
investment and revitalization along the Chicago Avenue commercial corridor and to improve the
overall quality of life in West Humboldt Park.
SSA funding is controlled and directed locally by an SSA Commission comprised of local business
and/or property owners. All funding stays within the SSA for local direct benefit.
*Draft
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Chicago Avenue Existing Conditions
 Currently Chicago Avenue exhibits a need for increased
clean-up, security, and investment.
Chicago & Sawyer
Chicago & St Louis
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Chicago Avenue Existing Conditions
 Currently Chicago Avenue exhibits a need for increased
clean-up, security, and investment.
Chicago & Hamlin
Chicago & Homan
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Sample 3-Year SSA Budget
$115,000 with 3% annual increase
Chicago Avenue SSA Estimated Budget
Program Category
Year 1
Advertising & Promotion
Public Way Maintenance
Public Way Aesthetics
Year 2
18,000
5,000
Year 3
3,900
35,540
5,150
Tenant Attraction/Retention
Façade Improvements
4,017
36,606
5,305
5,300
5,000
Parking / Transit / Accessibility
Safety Programs
District Planning
45,219
30,000
46,576
10,000
47,973
Other Technical Assistance
Personnel
Admin. Non-Personnel
12,781
2,000
13,164
2,060
13,559
2,122
Loss Collection (unpaid taxes)
2,000
115,000
2,060
118,450
2,122
122,004
SSA Budget
Tax Rate
Tax Rate Cap
115,000
1.16%
1.50%
118,450
1.19%
1.50%
122,004
1.23%
1.50%
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Proposed SSA Geography
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Proposed SSA Parcels and EAV
262 total parcels
Parcel Distribution
EAV Distribution
2%
8%
21%
5%
34%
3%
24%
8%
61%
12%
22%
Exempt
Single Family Residential
Multi unit (Residential only)
Vacant or Minimally Improved land
Mixed Use (Commercial and Residential)
Commercial/Industrial
34%
3%
21%
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Total tax base and TIF impacts
 2011 Total EAV

$15.3 million
 2011 TIF Base EAV

$9.9 million
 Because the SSA is 100% in TIF districts, SSA revenues can only
collected from the TIF Base EAV
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SSA Tax and Rate Cap
Proposed Estimated 2014 SSA Rate
This rate is for a $115,000 first year SSA budget.
2011 Tax Rate
5.455%
Est. Proposed SSA Rate
1.159%
New Est.Tax Rate
6.614%
Proposed SSA Rate Cap
This rate is the maximum rate that
could be levied during the SSA’s 10 years.
1.500%
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Effects of 1.159% SSA Tax Rate
% Increase in Tax Bill
21%
Max. Tax Increase
$6,700
Average Increase for nonexempt (annual)
$860
Median Increase for nonexempt (annual)
$440
70
Distribution of Annual Property Tax Increases: $115,000 SSA Budget
60
50
56
46
40
42
40
39
30
27
20
10
-
12
Exempt
<$250
$250 to 500
$500 to 750
$750 to 1250
$1250 to 2500
>$2500
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SSA Effects on Tax Bill
Total Taxes due will increase by approx.
20% next year.
In this example, Total Taxes Due would
be $5,742
An additional line will be added for the
SSA with a rate of 1.159% and a
maximum rate of 1.500%.
In this example, taxes for the SSA would
be $1,007.
Total tax rate would increase to 6.614%.
Each installment would be approx. 20%
higher.
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Summary
 Major areas of 2014 spending at $115,000 budget
 Safety programs
 Cleaning/public way maintenance
 Leverage source for grants etc.
 Future budgets
 Refine future budgets based on stakeholder feedback
 Plan to hold line of vendors as possible
 Some start up costs go away
 Potential future SSA services
• Marketing/Advertising
• Façade rebate program (coupled with SBIF)
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Discussion
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