Title
Approval of the Fiscal Year 06-07 and 07-08 Budgets (B)
Explanation
The City of Gainesville follows a two-year budget cycle and the CRA Board is being asked to approve the Advisory Board recommendations for the Fiscal Year 06-07 and Fiscal Year 07-08 budget. A copy of the budget is attached for review.
It is difficult to project the increment from year to year. There has been significant growth in the tax increment over the past few years, but it is difficult to project how that growth rate will change over the coming years. As a rule of thumb, staff projects increment at a conservative 5% growth rate annually. Once the actual increment is determined in December additional funds are budgeted during the amendatory budget process. It should also be noted the project funds can be moved from one category to another if the CRA decides to shift its priorities.
Based on the current increment and personnel numbers staff recommends the CRA move to a new funding formula for the next two years. All operating expenses will be split among the areas as follows: College Park University Heights 45%; Downtown 33%; Fifth Avenue Pleasant Street 11%; Eastside 11%. This breakdown is a reflection of the percentage of the total increment generated by the area.
The budget has been reviewed by the Advisory Boards and their recommendations have been included in the budget as presented.
Payroll - At this time staff is recommending no changes to the current personnel strategy.
Operating Expenses- Operating expenses have been increased slightly across the board, based on actual expenses over the past two years.
Project Funds- Project funds are broken into two categories, CRA-wide and individual CRA areas. The CRA wide projects are those projects that cut across more than one CRA area. The Advisory Boards recommend the following project funding:
CRA-Wide Maintenance- College Park University Heights, Downtown and the Fifth Avenue Pleasant Street areas budget annually for additional litter pickup, sidewalk sweeping (pressure washing is covered in another service), landscape maintenance and graffiti abatement services. Services are provided in College Park University Heights for two days a week, the Downtown core two days a week and Fifth Avenue Pleasant Street one day a week. The cost of this service is $65,648 annually, split between the three areas with CPUH and Downtown paying $26,259 each and FAPS paying $13,130. Earlier this year staff was asked to explore the possibility of these services being provided in house. After several meetings with Park, Recreation and Cultural Affairs and Public Works it was determined that it would cost $170,000 to provide the services in house. On going costs after the first year for in house services were estimated at $104,000 per year. The in-house cost reflects the purchase of equipment, the addition of staff and the required supervision for that staff. Parks, Recreation and Cultural Affairs have recommended changes to the Scope of Work for this contract and CRA staff has included them in the most recent bid. This expense appears in both the budgets under consideration.
CRA Wide Marketing/Web - The Boards are recommending the CRA budget $15,000 CRA-wide for this project. These funds will be used for printing additional Visual Master Plans and website maintenance. It is anticipated that the website for this project will begin shortly. The CPUH portion of the project is $6,750, the Downtown portion of the project will be $4,950; the Eastside portion of this project is $1,650 and the FAPS portion of this project is $1,650. This expense appears in both the budgets under consideration.
University Avenue Interim Improvements- Staff is working on a program of improvements that will run the length of University Avenue from NW 20th Street to NE 15th Street. Each area is being asked to budget funds for their portion of the project. In Fiscal Year 06-07 CPUH has budgeted $25,000, Downtown has budgeted $20,000 and the Eastside is budgeting $129,000 for streetscaping within the area. In Fiscal Year 07-08 CPUH has budgeted $25,000; Downtown has budgeted $21,376 and the Eastside has budgeted $168,608 for streetscaping within the area.
Façade Grant Program- Three of the CRA areas offer Façade Grant programs. The Boards are recommending the following funding: DRAB budgeted $19,575 in 06-07 and $20,000 in 07-08; CPUH budget $50,000 annually and Eastside budget $10,000 annually.
Parking Management Strategy- In both Downtown and College Park University Heights there is a need for a unified parking management strategy. This strategy should include structured parking placement and funding, on street parking, surface parking lots, permit parking and a range of management system. Staff is not recommending a parking study by an engineering firm, but rather a contract with a firm that manages and builds parking. The Boards are recommending $25,000 in Downtown and $25,000 in CPUH for this project.
Projects by CRA area- The following projects are recommended by the respective Advisory Board.
College Park University Heights Projects
Debt Service Payment- CPUH carries a $59,900 debt service payment on the Southwest 2nd Avenue Project.
Sidewalk Pressure Washing and Gum Removal- Staff is recommending $37,000 be budgeted in Fiscal Year 06-07 and $38,850 be budgeted in Fiscal Year 07-08 for this project.
Innovation Zone - During the Amendatory Budget Cycle CPUH allocated $23,000 towards the Innovation Zone. Staff recommends an additional $25,910 be allocated in Fiscal Year 06-07 and $25,000 in Fiscal Year 07-08.
SW 8th Avenue Streetscape and Lighting - Staff is recommending that CPUH begin budgeting for the streetscape, undergrounding of the electrical lines and installation of new lighting fixtures for SW 8th Avenue. Staff is recommending $100,000 be budgeted in Fiscal Year 06-07 and $288,647 be budgeted in Fiscal Year 07-08.
SW 7th Avenue Lighting - CPUH recommends budgeting for the undergrounding of electrical lines and replacement of poles on SW 7th Avenue, from NW 9th Street to NW 12th Street, to correspond with the addition of sidewalks, curb and gutter and parking improvements. GRU estimates the project will cost $150,000 to complete. CPUH is recommending $150,000 be budgeted in Fiscal Year 06-07 to complete the project.
Stormwater Management - With the completion of the CPUH Stormwater Master Plan, funding is needed to implement the Plan's priorities. CPUH is recommending $195,000 be allocated to stormwater management in Fiscal Year 06-07 and $200,000 in Fiscal Year 07-08.
West University Avenue Lofts Debt Payment - The CRA is obliged to pay $46,420 annually for the debt payment for the West University Avenue Lofts project. These payments show in both budgets under consideration.
Incentive Payments- There are four incentive payments within the College Park/University Heights area budget. These figures are based on last year's payment and if the value of the project increases the payment will increase also. The payments are as follows: Heritage Oaks - $14,689, Woodbury Row - $15,922, Campus View I - $65,716, and Stratford Court - $28,431. These payments show in both budgets under consideration.
Downtown Projects
Debt Service- The CRA borrowed funds for the Downtown Parking Garage and the $112,035 debt service payment in the budget reflects the repayment of those funds. This expense appears in both the budgets under consideration.
Sidewalk Pressure Washing and Gum Removal- DRAB is recommending $20,000 be budgeted annually for this project. The program area will expand area over the two-year cycle to include more streets.
Downtown Maintenance (Evenings and weekends) - Downtown provides for additional services in the evening after the clubs close and on weekends. These services cost $33,000 per year.
Incentive Payments- There are three incentive payments within the Downtown area budget. These figures are based on last year's payment and if the value of the project increases the payment will increase also. The payments are as follows: Union Street -$180.810 - Commerce Project - $71,832 - Arlington Square - $6,300.
Policing Innovations- This year Downtown will budget for the last of policing innovation project. The project has included a five officer team that focuses completely on the Downtown area. The budget for this project $75,000.
East University Avenue Lighting- DRAB is recommending that the CRA begin budgeting for the replacement of the concrete light poles from NE 5th Street to Waldo Road. GRU estimates the project will cost $350,000 to complete. DRAB is recommending $125,000 be budgeted in Fiscal Year 08-09 to begin saving for this project.
Eastside Projects
Debt Service- The CRA borrowed funds for the Tackle Box project and the $22,462 debt service payment in the budget reflects the repayment of those funds. This expense appears in both the budgets under consideration.
Tackle Box Project - The Board recommends $30,000 in additional funding for this project in Fiscal Year 06-07.
Streetscaping- The Eastside Board recommend that $129,000 in Fiscal Year 06-07 and $168,608 in Fiscal Year 07-08 be budgeted for Streetscaping within the district
Fifth Avenue Pleasant Street Projects
Model Block project - The FAPS Board recommends that $25,662 be budgeted in Fiscal Year 06-07 and $40,294 in Fiscal Year 06-07.
Sponsorship of the 5th Avenue Arts Festival- In an effort to keep the neighborhood informed about CRA projects and to promote the Model Block project the Board recommends that $2,000 annually be budgeted to sponsor the 5th Avenue Arts Festival.
Northwest 5th Avenue Revitalization/Streetscape - The Board recommends that $100,000 per year be budgeted for this project.
Fiscal Note
As presented
Recommendation
College Park University Heights Redevelopment Advisory Board to the CRA: Recommend approval of the budget, as presented.
Downtown Redevelopment Advisory Board to the CRA: Recommend approval of the budget, as presented.
Eastside Redevelopment Advisory Board to the CRA: Recommend approval of the budget, as presented
Fifth Avenue Pleasant Street to the CRA: Recommend approval of the budget, as presented
Executive Director to the CRA: Recommend the CRA adopt Resolution 060034.