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HomeMy WebLinkAboutZ3. 2014 Budget Presentation Community Investment 10-07-13Good evening Councilmembers. Its my pleasure to speak with you tonight on the topic of economic development in South Bend. A topic that is near- if not at the top — of the priority list for all in the City Government. Through your support in 2013, we've made great strides to change the way we do business in South Bend to attract more jobs and investment to the Community and expand economic opportunities. There is certainly much more to be done and we greatly appreciate your continued support for the efforts in 2014. 1 a�aaQ o PRESENTATION OUTLINE • Vision • Mission & Organization • 2013 Accomplishments • 2014 Key Initiatives • Redevelopment Budget • Administrative Budget • K P I's a, -ANN66L 2 a�a DCI- VISION: Vibrant urbanism is economic development'--' Dull, inert cities, it is true, do contain the seeds of their own destruction and little else. But lively, diverse, intense cities contain the seeds of their own regeneration, with energy enough to carry over for problems and needs outside themselves. Jane Jacobs Death & Life of American Cities Thank you for your support and partnership to improve the quality of life in South Bend. a�aaQ o DCI - MISSION To spur investment in a stronger South Bend. We do this by: - Attracting & retaining growing businesses - Planning for vibrant neighborhoods - Connecting residents to economic opportunities r To realize that vision, we (collectively in the department) have honed the mission to underscore and clarify the key priorities. Our mission is to... 0 a�aaQ o DCI - ORGANIZATION Enterprise We achieve this mission through three critical funding sources: City Revenue Funds (which primarily fund our administrative duties), Enterprise Funds, and the Redevelopment Funds (which fund most of our operations). In years past, the Redevelopment budget was shared a later date, but in response to Council interest, we sought to incorporate the redevelopment budget as well in these materials. The City brings a number of resources to bear to drive its goals on economic development. It's a collective strategy that requires partners. Funded through EDIT... - Chamber - DTSB a�aa�Ec DCI - ORGANIZATION RISID[RTS ' CITY COfIRCI MAY OR —F—L OItT C—A score Foao awls - - E ",IN —N RAMEIF METER ELIZABETH LEONARD INAS CHRIS FIELDING BROCA HIS Thank you for support the new structure. Its been helpful to increase our responsiveness to economic opportunities and improve the east of doing business with south bend. The Single Point of Contact — perhaps more than anything — has received the most feedback from the community. 0 a�aaQ o 2013 ACCOMPLISHMENTS 1. Attracting & Retaining growing businesses Served 23 businesses, representing $27.7M investment with a projected $4.91VI increase in assessed value (AV) Working with prospects that represent over 1,100 new and retained jobs, $123M of investment, 1.11VI s.f. of commercial space Noble Energy /New Energy Ethanol Plant Single Point of Contact Business Toolkit —Lr Organized accordingly to by mission, I wanted to share a few highlights from our work in 2013 thus far... 7 a�aax� o 2013 ACCOMPLISHMENTS 2. Planning for Vibrant Neighborhoods: - Downtown Residential Market Study - Corridors RFP - Fellows Street - Smart Streets Workshops - Supporting the Vacant & Abandoned Initiative SouthBendT ffiunexom Fellows Street residents happy with scaled-down project Wobcr tS "u TOM MOOR l M[ a ND - It.Rvn me ep a quo 1K .,M A.M moem, d meNe�. and ELA,$� enm di"a"ew`e' the swh°"'eR.a` WEST SIDE CORRIDORS We've initiated several programs will enable us to be more intentional /targeted. To work with data. To engage the public. N. a�aaQ o 2013 ACCOMPLISHMENTS 3. Connecting Residents to Economic Opportunities - 261 jobs created from DCI assisted projects - 51 home - owners assisted through Rebuilding Together and South Bend Home Improvement Program (SBHIP) - 44 at risk home - owners assisted through foreclosure prevention counseling -2013 Jobs. Jobs. Jobs. Also recognizing that homes /homeownership have economic implications. 9 a�aaQ o 2013 ACCOMPLISHMENTS Homeowner Rehabilitation Programs South Bend Housing Counseling January 1. 2012 through August 22, 2013 January 1, 2012 through August 20, 2013 Tail c.- S—. 93 TCW CMnb Saud 129. Pn Pwd,—t 41. Ymp9p OMit OS 1 �t .-4t ^- � '7 A } ��tiw• `�'� f sly i� a +1 ' A 10 a�aa�sc 2013 ACCOMPLISHMENTS South Bend Implements Drucker Public- Sector leadership Program South Bend Impl, -1, D,,ckrr NEr, Sect,, Ludemhlp ho(nm Finally— a note on improving our workforce within the Department. We are piloting with the Drucker Institute to get world -class training as they develop a program for leadership in the public sector. 11 a�aaQ o 2014 KEY INITIATIVES 1. Attracting and retaining growing businesses Reforming economic development tools Creating investment ready places • Ignition Park • Renaissance District • Smart Streets (Corridors & Downtown Streetscapes) • Supporting the Vacant and Abandoned Initiative Improved customer service /CRM Looking ahead to 2014 — again organized by our mission — there is a strong emphasis on improving the ease of doing business in South Bend. 12 a�aaQ o 2014 KEY INITIATIVES 2. Planning for vibrant neighborhoods — Creating investment ready places — Smart Streets (Corridor planning and implementation & Downtown Streetscapes) — Assisting neighborhood plans for Vacant & Abandoned Homes Initiative In many ways these activities will be supporting the desired outcomes of the other two priorities (business attraction and econ opportunities) 13 a�aaQ o 2014 KEY INITIATIVES 3. Connecting residents to economic opportunities — Workforce Development Initiative • Implementation of successful employer -led curriculum model — Deconstruction Jobs Training Program — Talent Attraction/ Investing in a Vibrant Core 14 a�aaQ o REDEVELOPMENT BUDGET To fund local public improvements in or serving the TIF area. Local public improvements include: Buildings Parking facilities Acquisition of land, rights -of -way, and other property to be redeveloped. All architectural, engineering, legal, finaning, accounting, advertising, bond discount, and supervisory expenses related to the acquisition and redevelopmentof the property or the issuance of bonds. Capitalized interest and debt - service reserve for the bonds Other local improvements such as streets, curbs, sidewalks, water, sewers, etc. As we mentioned earlier, many of the operations are funding through our TIF funds. Although this are typically shared at a later date- I wanted to include a brief note about this in today's slides — in response to Council interest. 15 16 a�aax� o REDEVELOPMENT TIF by Council District BUDGET Council I Parcel Area % area j District (acres) TIF District 1 7155.4 65.0 2 2107.62 38.3 1 F 3 1560.05 24.7 4 2263.63 24.9 r W 5 3791.1 14.2 6 4482.04 35.4 16 17 - LEGEND O8oscb Faculty Rausa .{• L . © C-11 ins Mast" Plan Pl.n la Lincolnwa) 6 Wovl .. Collage Football Hall of Fame Resusa :. f C nf.. A— Sbaataeapa U.Me V41.8. Comdata Shost. RIM Impgrnamant RolHt • 'S e� © Flra Training C..., Property Acyuhitldn O "• O HIII St lnhaebuclure j Inl..sbuctu W-ppat new 1-0-11 .. 1 O "in 6 Cotaa mi." UN New M­ Uw Daralopm—t O Ph.tlon Park Inlraebuctura F Ignition Park Multi Tenant Building L.S.N. HOtal Ranab. %aw Ap.rtnwntc 6 L90END } Mal. Li /ayaHa Conmeta ,`i 7 \- Ma 121 Skyway Brldgo Ranalsunca Ofatrlcl Rufaton Building Ransil S...or Ho j; Smart Sbaats Initial" (3 Way Strait Rri, r k.) S:ud P� k. abak,l Pta la w PI.[. in Downtown William St. Straat.eapa Mgrr 17 a�aaQ o REDEVELOPMENT BUDGET 50,�0.00� X5,000,000 • DevNOpment OpP Rnene 40,000,000 - �- - - -_- - _ 35.000.000 30.000.000 % 1013 Commd -% not W -' en<umEeteE 25,000,000 20.000.000 - .,Rood E,penset 15.000,000 - 10,000,000 5.000,00 _ ■ Debt S— d IV a�aaQ o REDEVELOPMENT BUDGET Redevelopment Funds: 324 /AEDA: Ignition Park Phase II, Ren District, Corridors, Development Leads 420 /SBCDA: Downtown developments/ residential and office 422 /WWDA: Possible assistance to Parks for Cemetery 426 /CMSD: Barlett and Lafayette streetscape improvements, roundabout, parking, (2015) 429 /NNDA: Four points utility relocation. (2033) 436 /NRDA: Debt service. Bonds in 2033. (2037) 430 /SSDA #1: Possibly release some of the increment. (2032) 432 /SSDA #3: Increment will be released. Debt to be paid off in 2017.(2034) 435 /DREDA: Retire debt as early as 2017. (2036) As we mentioned earlier, many of the operations are funding through our TIF funds. Although this are typically shared at a later date- I wanted to include a brief note about this in today's slides — in response to Council interest. 19 Selma 8 Wages 1.288.270 1235,109 1.433.305 663.6181 1.893176 59.871 4.2% Fringe Benefits 355.828 390.776 486.862 2252001 558.500 7108 U.7% Profess onal Sewn (3114) Budget Summary: Fund 211 - DCI Administration 2013 26.536 253.523 127.991 NINV a 2018 -47.5% 2011 F 2012 Amended S W13 Proposed Variance % "'• ' Description Anual Anual Sudcel Anual Budget 2013.2M4 Ch 7.860 Rev 16.332 8.166 r Property Taxes - - - - - - - &aritsAmngo --tal 359 168 328,599 421 787 70.914 386 787 (35,000) -8.3% 0.0% Charges itt Sexes - - - 6.672 23.100 (2.000) - Transiera Ctut fLlw iwrvnu Ila"e IS(1..1 Imerest Eam,ngs 1.625 3,057 2.200 1.597 2200 . - - 0.0% Other Income 272.990 236.621 200.300 131,874 200 300 0.0% Selma 8 Wages 1.288.270 1235,109 1.433.305 663.6181 1.893176 59.871 4.2% Fringe Benefits 355.828 390.776 486.862 2252001 558.500 7108 U.7% Profess onal Sewn (3114) 12,905 26.536 253.523 127.991 133.002 (120,521) -47.5% CommrTrensportatwn(32.) 29.941 26.327 34,969 13.898 31,000 (769) -2.8% Pnmalg 6 Adserhsmg (331x) 8.622 17.016 16.950 8.834 17,950 1.000 5.9% Inswarlce 134u) 7.860 15.972 16.332 8.166 ",892 28.560 174.9% LAMM (35U) - - - - - Repars d Ma denance (361x) 23.793 23,004 31,829 11.022 31,829 - 0.0% Other Serssces 8 Chages (391n) 7.600 14.792 25.100 6.672 23.100 (2.000) 2.0% Transiera Ctut fLlw iwrvnu Ila"e IS(1..1 - pia a'M - pIi fI4 - - - - - - - - Begmnmg Cash Babnce - 516.213 584.037 588,037 I S71,S14 Balance Sheet AdNSMrents 217 114 1201) Now to dive into the numbers. Fund 211- our Admin Budget is essentially flat year over year. 9c One key change in the Fund 211 relates to personnel. To better serve the top line priorities of job creation and investment, we're proposing an adjustment that would allocate assets to assist with these goals. 21 a�aa4 0 ADMINISTRATIVE BUDGET 26 FT + 2 PT 2013. 27 FT in 2014 Reductions Consolidation F/T Economic Associate III Economic Associate Ill (F/T) Resources (P/T) Resources Admin & Administrative Finance Assistant I (PIT) Transfer -in Admin & Administrative Finance Assistant I Business Administrative Development Assistant III (F/T) One key change in the Fund 211 relates to personnel. To better serve the top line priorities of job creation and investment, we're proposing an adjustment that would allocate assets to assist with these goals. 21 Oexription Rev Property Tyres Gram snm ergo.emrnemal Charges fw Senxes Imerest Eam,ngs Other Income Budget Summary: Fund 212 — DCI Grants eon 2014 a 2011 2012 Amended 6130713 Proposed Variance % S Actual Actual Budget Actual Budget 20132014 Cha 5 584 509 3.667 111 8 148 705 2 363.641 3.525.000 (4 623 705) -56 7% 3.167 2.578 2000 1.199 2000 . 00% 318 991 690 126 649 600 170.993 284 000 (365 600) -56 3% sal -8 Wages 380 48 163 Fnnge Bsne6ts - P,dess oval Senxes (3116) 4.099 Insurance (34-) - - - - - L)Wd,es (351x) Repays 6 Mamenance (361x) 1.316' 316 - Other Senxes 8 Charges (3916) 676.819 110.413 - - - Grams 8 SuhsMies 5.054.698 3.829.792 8,957,256 2.527.499 3,811,000 (5.146.256) -57.5% Transfers ON 546.087 - - - Begmnmg Cash Balance 501,923 299,072 513.841 513,M0 356.889 Balance Sheet Adjustments (15.694) Kr" - (1.162) As you may recall from last year's discussion, the Federal and City financial calendars are slightly out of phase. This leads to what is perceived to be a huge jump every year, when in actuality the funds will net out to smaller figure when they are processed. 22 aa.x�Lo ADMINISTRATIVE BUDGET —FUND 212 - Projected $3.8M Federal Grants to assist neighborhood - stabilization and homelessness assistance programs. $2.4M (CDBG) $296,479 NSP Program Income $220,990 ESG $280,000Shelter + Care $94,000 Supplemental Housing Rental Assistance $500,000 Reserve NSP -1 and CDBG -R are expended. 25% drop in 2013 ESG (Emergency Solutions Grant) 23 n i KEY PERFORMANCE INDICATORS iii 2016 2012 2013 Mayoral Long Term Actual Estimated 2014 Measure Goal Type Goal If available Ifavallable Tar at Actual jobs created from DCI efforts ED Outcome 450 NA 310 375 Homes from V &A list brought up to code ED Outcome TBD N/A TBD TBD Comm. private invest. of approved projects ED Outcome $100M $74.8M $79M $79M iii a�a DCI- VISION: Vibrant urbanism is economic development'--' Dull, inert cities, it is true, do contain the seeds of their own destruction and little else. But lively, diverse, intense cities contain the seeds of their own regeneration, with energy enough to carry over for problems and needs outside themselves. Jane Jacobs Death & Life of American Cities Thank you for your support and partnership to improve the quality of life in South Bend. 25