AGENDA #4b
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution and Ordinance Authorizing Amendment of Performance Agreement with the Downtown Commission
DATE: May 13, 2002
Approval of the attached resolution and ordinance would authorize the Manager to amend the performance agreement with the Downtown Commission and allocate $18,000 from the Downtown Service District Tax Fund balance to allow the Downtown Commission to pay for a retail marketing study of the downtown.
On April 22, the Council received a petition from Margaret Skinner, Chair of the Chapel Hill Downtown Commission, requesting that the Council allocate $18,000 from the Downtown Service District Tax Fund balance to be used for the purpose of securing the services of a professional retail consulting firm (Attachment 1). The Commission is currently in discussion with University Retail Group about a $40,000 proposal that would provide assistance, analysis, and marketing/management tools that can be used to increase the downtown’s commercial vitality.
The Commission reports that it has received funding commitments from the University ($10,000), the Chamber of Commerce ($5,000), and property and business owners ($9,500). The Commission requests this funding from the current (June 30) Service District Fund Balance of $23,000.
The Council established the Downtown Service District in July 1989 in response to requests from downtown business and property owners for enhanced promotional activities and supplemental services. The Downtown Service District includes most properties with Town Center-1 and –2 zoning. The Council has excluded property used only for residential purposes.
The present Downtown Service District tax rate is 6.2 cents per $100 of property value. The current year (2001-02) tax levy is $71,400, based on a net tax base of $115,264,000. We predict the same for the 2002-03 fiscal year. The Town normally budgets a 98% collection rate; therefore, we project revenue to be approximately $70,000 for both 2001-02 and 2002-03.
The Service District Tax Fund Balance is an accumulation of undistributed funds from the downtown tax, totaling approximately $23,000 as of June 30. We believe that the fund balance at the end of fiscal 2002-03 would be about $7,000, or 10% of annual operations costs.
We recommend that the Council approve the Downtown Commission’s request and adopt the attached resolution authorizing the Manager to amend the performance agreement with the Downtown Commission to reflect the updated services provided by the Commission. We also recommend adoption of the attached ordinance transferring $18,000 from the Downtown Service District Tax Fund for use by the Downtown Commission.
ATTACHMENTS
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO AMEND THE PERFORMANCE AGREEMENT WITH THE CHAPEL HILL DOWNTOWN COMMISSION TO REFLECT NEW SERVICES PROVIDED BY THE COMMISSION (2002-05-13/R-3)
WHEREAS, the Chapel Hill Downtown Commission provides services funded from the Downtown Service District tax through a performance agreement with the Town; and
WHEREAS, the Downtown Commission has requested that the Council allocate $18,000 from the Downtown Service District Tax Fund Balance to be used for the purpose of securing the services of a professional retail consulting firm; and
WHEREAS, the Service District Tax Fund Balance is an accumulation of undistributed funds from the downtown tax, totaling approximately $23,000 as of June 30;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Town Manager to amend the performance agreement with the Downtown Commission to reflect new services provided by the Commission.
This the 13th day of May, 2002.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2001 (2002-05-13/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2001” as duly adopted on June 25, 2001, be and the same is hereby amended as follows:
ARTICLE I
Current Revised
APPROPRIATIONS Budget Increase Decrease Budget
DOWNTOWN SERVICES
DISTRICT FUND 71,834 18,000 89,834
DOWNTOWN SERVICES
DISTRICT FUND
Fund Balance 3,834 18,000 21,834
This the 13th day of May , 2002.