ECONOMIC VITALITY AND DIVERSITY SUMMARY

Transcription

1 SUMMARY Economic vitality and diversity requires a healthy local economy that serves all segments of the population and provides the monetary resources necessary to support the community. This includes sustaining a tax base sufficient to fund community services, providing members of the community with sufficient wages, and providing capital for community development. Focus Area Objectives Focus Area Categories Focus Area Programs by Category Arts and Sciences Agencies Business Development Business Development, Economic Self Sufficiency/Small Business Loan Program, Minority and Women Owned Business Enterprises (M/WBE), Downtown Winston Salem Business Improvement District (BID), Economic Development Public Assembly Facilities Dixie Classic Fair, Winston Salem Fairgrounds (Non Fair Events and Administration), Benton Convention Center, Bowman Gray Stadium, Downtown Ballpark Off Street Parking Successful Outcomes After Release (SOAR) Program Budget by Focus Area Category Personnel Summary by Focus Area Category Performance Measures and Service Trends Budget Highlights Economic Vitality and Diversity Non Departmental Economic Vitality and Diversity Capital Projects TOTAL BUDGET BY FOCUS AREA: $16,022,270 Off Street Parking 13.3% Arts and Sciences Agencies 3.7% Business Development 36.8% Public Assembly Facilities 45.6% 53 Successful Outcomes After Release 0.6%

2 FOCUS AREA OBJECTIVES Recruit and Retain Employers Promote Downtown Revitalization Promote Commercial Development in Economically Disadvantaged Areas Enhance Skills of Workforce Develop and Redevelop Commercial/Industrial Parks/Sites Assist Small Businesses FOCUS AREA CATEGORIES Arts and Science Agencies, Business Development, Public Assembly Facilities, Off Street Parking, Successful Outcomes After Release FOCUS AREA PROGRAMS BY CATEGORY ARTS AND SCIENCES Arts and Science Agencies: The City of Winston Salem provides annual operating or capital support to community agencies that meet the legal requirements for receiving public funds, as stipulated in North Carolina General Statute Moreover, to meet City requirements for funding, community arts and sciences agencies must meet certain specific organizational characteristics, as follows: Non profit, incorporated status, with at least two years of audited financial records and IRS 990 forms; Sound organizational management with a well rounded board of directors, governing under a set of written by laws, as required under the articles of incorporation; Broad based support, city wide; and Policy of non discrimination by race, sex, age, religion, or disability, in terms of the service provided and employment offered. BUSINESS DEVELOPMENT Business Development: Monitors and promotes small business development opportunities throughout the city, utilizing a series of related programs to provide concentrated assistance to targeted areas and groups. Responsible for the Revitalizing Urban Commercial Areas (RUCA) Program, Small Business Loan Program, and Building Rehabilitation Programs. Economic Self Sufficiency/Small Business Loan Program: Provides loans to new and existing small businesses to assist in start up or expansion. Offers small business training program to assist local entrepreneurs to successfully plan, open, and operate a business venture. Minority and Women Owned Business Enterprises (M/WBE): Assists minority and women owned business enterprises in providing goods and services to the City. In addition, the program provides workshops and seminars for minority and women owned businesses and assistance with the resolution of problems and complaints relating to payment and/or contract violations. The M/WBE program is also responsible for the enforcement of Section 3 of the Davis Bacon Act. 54

3 FOCUS AREA PROGRAMS BY CATEGORY Continued Downtown Winston Salem Business Improvement District (BID): Created in November 2013, the Downtown Winston Salem Business Improvement District provides an enhanced level of service within a defined area downtown and is funded from a dedicated property tax rate of 9 per $100 of value. The Downtown Winston Salem Partnership currently provides services within the district according to five primary areas: cleaner environment, increased safety and security, stronger marketing and promotion, accelerated development, and enhanced physical appearance. The Downtown Winston Salem Business Improvement District Advisory Committee, an eleven member committee made up of various stakeholders within the district, provides oversight of the implementation of these services. Economic Development: Assists with the retention and expansion of existing companies and the attraction of new companies to enhance the overall quality of life for all citizens by growing the tax base and retaining or creating quality jobs for the community. PUBLIC ASSEMBLY FACILITIES Dixie Classic Fair: Plans, promotes, and produces the annual Dixie Classic Fair. Winston Salem Fairgrounds (Non Fair Events and Administration): Operates a 3,600 seat Annex for public ice skating, other ice activities, basketball games, and trade shows. Operates the 30,000 square foot Education Building and 7,500 square foot Bolton Home and Garden Building for trade shows, banquets, community events, and other rentals. Operates a year round Farmers Market at the Fairgrounds (each Saturday). Provides for maintenance of the Winston Salem Fairgrounds and associated facilities. Benton Convention Center: Under a contract with Hospitality Ventures Management, operates a 90,000 square foot public assembly facility that hosts conventions, meetings, banquets, and trade shows. Works with the Visit Winston Salem and hotel sales staffs to develop sales proposals, present bids to prospective clients, and develop sales strategies and marketing plans. Bowman Gray Stadium: Operates an open air stadium (capacity of 17,500) with a quarter mile asphalt race track equipped to handle spectator events including auto racing, football games, band competitions, concerts, and other mass spectator events. Downtown Ballpark: Accounts for the principal and interest payments required to pay off debt financings approved to purchase the land and construct BB&T Ballpark. Resources include lease payments from the baseball team owners group, baseball ticket surcharges, and the incremental property tax revenue generated from the new development. OFF STREET PARKING Off Street Parking: Operates two parking decks and five parking lots throughout the downtown area. These facilities account for almost 2,500 off street parking spaces. SUCCESSFUL OUTCOMES AFTER RELEASE Successful Outcomes After Release (SOAR): The City of Winston Salem Re Entry Program and other community agencies provide programming and support to former offenders re entering the community through workforce development and employment opportunities. 55

4 PROGRAM BUDGET BY FOCUS AREA CATEGORIES ARTS AND SCIENCES* Actual Budget Proposed Percent Expenditures Change Arts Council 215, , ,360 0% Center for Creative Economy 0 25,000 25,000 0% National Black Theatre Festival 222, , ,360 0% RiverRun International Film Festival 104,673 85,000 85,000 0% SciWorks 49,838 40,000 40,000 0% The Sergei Foundation 5,000 5,000 5,000 0% Subtotal $597,343 $594,720 $594,720 0% Revenues Other General Fund Revenues $597,343 $594,720 $594,720 0% Subtotal $597,343 $594,720 $594,720 0% BUSINESS DEVELOPMENT Expenditures Business Development $525,536 $509,610 $655, % Construction Work Program 5, , , % Construction Training Program 81, , , % Minority/Women Business Enterprise Program 65,145 87, , % Economic Development Grants 858,681 50,000 50,000 0% Urban Development Action Grant 229, % Economic Development Loan Fund 166, % Economic Development Project Fund 2,306,627 2,111,400 2,717, % Occupancy Tax Fund 837, , , % Downtown Business Improvement District 543, , , % Smith Reynolds Airport 0 150, % Economic Self Sufficiency/Small Business Loans 99, , , % Subtotal $5,718,251 $4,695,100 $5,899, % Revenues Property Taxes Current Year (BID Rate) $514,551 $547,950 $598, % Licenses and Permits 7,505 5,600 6, % Miscellaneous Federal Support 66, N/A Community Development Block Grant (CDBG) 104,092 39,500 88, % CDBG Program Income 196, , ,000 0% State Grants 865, N/A Interest 152, N/A Miscellaneous Revenue 58, % Occupancy Tax 738, , , % Transfer from General Fund 2,585,090 2,111,400 2,717, % Transfer from Community Dev. Block Grant 86, , , % Transfer from Housing Finance Assistance Fund 236,012 62,930 66, % Transfer from Occupancy Tax Fund 50,000 50,000 50,000 0% Other General Fund Revenues 57, ,330 1,244, % Subtotal $5,718,251 $4,695,100 $5,899, % 56

5 PUBLIC ASSEMBLY FACILITIES Actual Budget Proposed Percent Expenditures Change Winston Salem Fairgrounds (Non Fair Events and Administration) $1,827,244 $1,854,870 $2,016, % Benton Convention Center 957,424 1,534, , % Bowman Gray Stadium 412, , , % Downtown Ballpark 1,519,764 1,849,460 1,821, % Dixie Classic Fair 1,839,934 2,118,080 2,127, % Subtotal $6,556,518 $7,779,310 $7,309, % Revenues Fair Admissions $1,047,084 $1,425,000 $1,425,000 0% Other Fair Revenues 1,308,778 1,369,000 1,369,000 0% Parking Services 350, , , % Concessions 170, , , % Scoreboard/Video Board Revenue 54,925 55,560 55,560 0% Non Fair Revenues 445, , , % Winston Salem State University 54,375 56,980 56,980 0% Rentals 287, , , % Miscellaneous Revenue 1,612,083 1,625,870 1,633, % Interest Income 11, N/A Transfer from Occupancy Tax Fund 325, , ,000 0% Transfer from General Fund 961,640 1,284, , % Ticket Surcharge 175, , ,000 0% Ballpark/W S Fairgrounds Fund Balance Appropriation 0 185, , % Subtotal $6,804,352 $7,779,310 $7,309, % OFF STREET PARKING Expenditures Off Street Parking $3,578,019 $2,215,320 $2,123, % Subtotal $3,578,019 $2,215,320 $2,123, % Revenues Parking Services $1,189,473 $584,000 $674, % Miscellaneous Revenue 7, N/A Forsyth County 435, , , % Interest Income 8, N/A Sale of Property 2,232, N/A Transfer from General Fund 645, , ,150 0% Off Street Parking Fund Balance Appropriation 0 709, , % Subtotal $4,518,192 $2,215,320 $2,123, % 57

6 SUCCESFUL OUTCOMES AFTER RELEASE* Actual Budget Proposed Percent Expenditures Change City Re Entry Program $198,904 $150,000 $ % Self Empowerment Lasts Forever 10,000 10,000 10,000 0% Salvation Army 5, N/A Eureka Ministry 20,000 20,000 20,000 0% Piedmont Triad Regional Council 0 10,000 10,000 0% YWCA Hawley House 0 13,500 13,500 0% Hoops4LYFE 0 5,000 5,000 0% How Is Your Heart Project 0 5, % Josh Howard Foundation 0 6,500 6,500 0% My Brothers Second Chance 0 5,000 5,000 0% Silver Lining Youth Services 0 5, % Southside Rides 0 10,000 10,000 0% Boys2Men Mentorship Program 0 0 5,000 N/A Contingency 0 10,000 10,000 0% Subtotal $233,904 $250,000 $95, % Revenues Other General Fund Resources $233,904 $250,000 $95, % Subtotal $233,904 $250,000 $95, % TOTAL BUDGET BY FOCUS AREA $16,684,035 $15,534,450 $16,022, % * A full list of community agencies can be found in the City Manager s Message. PERSONNEL SUMMARY BY FOCUS AREA CATEGORY Actual Budget Proposed Business Development Change Full Time Part Time (FTE s) Subtotal Public Assembly Facilities Full Time Part Time (FTE s) Subtotal Off Street Parking Full Time Part Time (FTE s) Subtotal TOTAL POSITIONS BY FOCUS AREA CATEGORY Full Time Part Time (FTE s) Total

7 PERFORMANCE MEASURES AND SERVICE TRENDS Actual Estimated Projected Effectiveness Achieve an occupancy rate of 75% for monthly leased spaces at offstreet parking decks 91% 85% 95% Fair operating revenue to operating expense ratio Percent of available days that are booked (Benton Convention Center) 80.3% 51.2% 75.3% Actual operating loss as a percent of budgeted loss (Benton Convention Center) 74% 72% 100% Efficiency Revenue per Fair attendee (total attendance) $9.12 $9.25 $10.50 Cost per Fair attendee (total attendance) $5.74 $6.32 $7.25 Workload Total Fair attendance 253, , ,000 Non Fair events attendance 138, , ,000 Number of hourly patrons at off street parking decks 80,481 80,000 80,000 Total number of events (Benton Convention Center) Total usage days (Benton Convention Center) Total attendance (Benton Convention Center) 78,712 88,159 89,200 Available days for booking (Benton Convention Center) Small Business Support: Building rehabilitation loans (NRSA) Small businesses assisted Small business loans considered Small business community outreach M/WBE businesses assisted M/WBE community outreach Bags of litter removed in BID 2,080 2,823 2,800 Pounds of litter (45 pounds per bag) in BID 93, , ,000 Leaf and litter vacuum hours in BID Back pack (blower) hours in BID Pressure washing hours in BID Graffiti Removal hours in BID BUDGET HIGHLIGHTS BUSINESS DEVELOPMENT For , the Downtown Winston Salem Business Improvement District Advisory Committee has recommended a tax rate of $0.09 per $100 of valuation to fund the enhanced services and programs within the district. The adopted rate will be assessed on real and personal property, including registered motor vehicles. The revenue neutral tax rate is $ per $100 of valuation. 59

8 BUDGET HIGHLIGHTS Continued The proposed budget for the Downtown Winston Salem Business Improvement District includes a fund balance appropriation of $62,000. This will cover projects replacing the lights and globes on the decorative street lights on Trade Street between 5 th Street and 7 th Street as well as the removal of bollards and electrical wiring on some intersections on 4 th Street. The below table shows the proposed budget for each service area: Service Area Proposed Budget Cleaner Environment/Safety and Security $345,860 Stronger Marketing and Promotion $71,240 Accelerated Development $12,480 Enhanced Physical Appearance $81,550 Administration $83,220 Property Tax Collections $3,680 Special Projects $62,000 Total $660,030 Below is a map of the Downtown Winston Salem Business Improvement District boundaries: 60

9 BUDGET HIGHLIGHTS Continued PUBLIC ASSEMBLY FACILITIES On May 8, 2017, the Public Assembly Facilities Commission approved a resolution recommending to the Mayor and the City Council the adoption of the budget for the Winston Salem Fairgrounds, Benton Convention Center, and Bowman Gray Stadium. Winston Salem Fairgrounds Starting in the fall of 2017, the Carolina Thunderbirds will kick off their inaugural season at the Fairgrounds Annex. The proposed budget includes additional expenses and increased revenues associated with the return of professional minor league hockey. Total expenditures are increased $171,100, or 4.3%, mainly due to the proposed 2% merit pay increase for employees, increased contractual and temporary labor expenses to support professional minor league hockey, and the replacement of the Fairgrounds prize management system for the Dixie Classic Fair. Total revenues are increased $34,720, or 0.9%, based increased rental income, concession revenues, and staffing charges from hosting the Carolina Thunderbirds. These revenues are offset partially by the decreased availability of the ice rink for public skating. Revenues projected from the 2017 Dixie Classic Fair are maintained at the same level as the budget. The 2017 Fair will be the City s final year of the current contract with the carnival provider. A new contract, which will provide the City a higher percentage of carnival revenues, will go into effect with the 2018 Fair. The following table provides estimated year end revenues and expenditures for the Winston Salem Fairgrounds operations. Budgeted Estimated Operating Revenues $3,793,580 $3,612,153 Operating Expenditures (3,571,620) (3,620,539) Operating Income/(Loss) $221,960 ($8,386) Interest Income 0 10,291 Debt and Lease Expense (401,330) (90,264) Transfer from Occupancy Tax Fund 75,000 32,355 Net Profit/(Loss) ($104,370) ($56,004) The following chart provides a fund balance projection for the Winston Salem Fairgrounds fund. The addition to fund balance in resulted from the sale of the Lawrence Joel Veterans Memorial Coliseum. Proceeds from that sale were allocated to immediate repairs and improvements to Fairgrounds facilities. The projection includes additional annual debt service payments from $2 million in new capital funding that was approved in

10 BUDGET HIGHLIGHTS Continued Winston Salem Fairgrounds Reserves $2.5 Millions $2.0 $1.5 $1.0 $2.28 $1.96 $1.90 $1.48 $1.36 $1.52 $1.26$1.27 $1.69 $1.53 $1.47 $2.21 $2.09 $1.83 $1.76 $1.44 $1.16 $0.83 $0.5 $0.47 $ Fiscal Year Benton Convention Center In June 2016, Hospitality Ventures Management Group (HVMG) assumed the management agreement for the Benton Convention as part of the sale of the Downtown Marriott and Embassy Suites hotels. While HVMG took over the day to day operations of the convention center, the City continues to be responsible for covering all operating losses for the convention center under the current agreement. Renovations to the Benton Convention Center are projected to be completed by early June; therefore, the entire building should be operational by the start of The proposed budget reflects this expectation, with operating revenues increasing by 36%, and operating expenses increasing less than one percent. As a result, the budgeted operating loss is decreased by 51%. For , the City staff has budgeted $646,450 to cover operating losses, compared to $1,325,220 in Overall, when the management fee and other expenses (e.g., property insurance) are included, the City s total support totals $915,550, a reduction of $618,790 from the budget. The proposed budget also includes a capital lease payment of $62,350 for financing over five years the purchase of new prefunction furniture and fixtures and banquet chairs for the newly renovated space. While the contribution from the occupancy tax fund remains at $250,000, general fund support for the convention center totals $665,550 for , a reduction of 48% from As more events are booked at the Convention Center, City staff expect to see a downward trend in the City s subsidy for the facility. Under the agreement with HVMG, the City provides $250,000 annually for capital needs. The City will finance these expenditures over five years through the North Carolina Municipal Leasing Corporation, with the general fund covering the annual lease payment of $50,000. The capital contribution was appropriated in January 2017 for the renovations project. Including these debt payments, total general fund support amounts to $881,

11 BUDGET HIGHLIGHTS Continued The following table provides estimated year end revenues and expenditures for the Convention Center Fund. Budgeted Estimated Operating Income/(Loss) ($1,325,220) ($955,414) Non Operating Expenses Management Fee $167,910 $167,232 Property Insurance 26,830 26,772 Miscellaneous Expenses 14,380 65,695 Loss Before Transfers ($1,534,340) ($1,215,113) Transfer from Occupancy Tax Fund 250, ,000 Transfer from General Fund 1,284, ,113 Note: Debt service on funds borrowed for renovations at the Benton Convention Center is not included in the budget information above. The debt service payment of $2,140,364 is included in the debt service fund budget. Total outstanding debt as of June 30, 2018 will be $17,845,599. Bowman Gray Stadium While the proposed budget for Bowman Gray Stadium assumes a full year of operations under City ownership, the sale of the stadium and surrounding property potentially could be approved before the end of calendar year 2017, based on City staff s recent discussions with staff from Winston Salem State University. The City currently has contracted with Winston Salem State University to operate and maintain the stadium during 2017, including the NASCAR racing and WSSU Football seasons. The proposed budget reflects the increase in the City s contract with the university that was approved by the Public Assembly Facilities Commission in January The City has contracted with a new concession provider for 2017 and will receive 40% of net sales, which is an increase from the 35% distribution that the City received from the previous concessionaire. Note: Debt service on funds borrowed for the construction of the field house and other improvements is not included in the budget information debt service payments of $369,222 and $233,275 are included in the debt service and leasing funds, respectively. Total outstanding debt will be $4,748,898 as of June 30, All City obligated debt would be paid off as part of the potential sale of the stadium. OFF STREET PARKING The following table provides budgeted revenues and expenditures by facility. Expenditures include an allocation of parking administration costs based on the number of spaces in each facility. Net Income/ Revenues Expenditures (Loss) Parking Lots $94,000 $95,890 ($1,890) Sixth Cherry Trade 240, ,970 (273,970) Fourth and Church 340,000 1,513,730 (1,173,730) Total $674,000 $2,123,590 ($1,449,590) * The deficit at Fourth and Church Deck is shared between the County ($471,860) and the City ($701,860). 63

12 BUDGET HIGHLIGHTS Continued Year End Outlook The following table provides budgeted and estimated revenues and expenditures. The estimated transfer from the general fund for the year totals $591,150. Budgeted Estimated Operating Revenues $584,000 $625,580 Operating Expenditures (1,041,900) (994,730) Operating Income ($457,900) ($369,150) Capital Outlay 0 (8,660) Debt and Lease Expenses (1,173,420) (1,174,340) Forsyth County Contribution 426, ,350 Investment Income 0 28,790 Transfer from General Fund 495, ,150 Net Income/(Loss) ($709,530) ($496,860) Long Range Financial Outlook The following chart provides the outlook for the parking fund cash reserves. It assumes a general fund subsidy of $495,150 through and then adjusting in outlying years to maintain the reserves around $645,000. The below outlook includes capital project expenditures. Millions $4 $3 $3 $2 $2.40 $3.14 Parking Fund Reserves $2.65 $1.95 $2 $1 $1.14 $0.87 $0.65 $0.65 $0.65 $1 $ Actual Actual Estimated Projected Projected Projected Projected Projected Projected 64

13 BUDGET HIGHLIGHTS Continued Long Range Projection of General Fund Subsidy to the Parking Fund Thousands $1,400 Actual $1,200 $1,000 $800 $600 Estimated Projected $400 $200 $ SUCCESSFUL OUTCOMES AFTER RELEASE The Successful Outcomes After Release (SOAR) Program was created in 2014 and, since its inception, nearly 30 returning citizens have successfully completed the program. The SOAR program has gradually expanded the personal and professional development opportunities and case management services available to matriculating participants. In order to continue to provide these enhanced services, administrative duties for the SOAR program are being reassigned to the staff responsible for the administration of the City s construction training program. Funds are budgeted for in the Business Development program in the Economic Vitality and Diversity strategic focus area. 65

14 NON DEPARTMENTAL Listed below are the appropriations related to the Economic Vitality and Diversity strategic focus area that are not included in any of the program budgets in this section of the document. EXPENDITURES Actual Budget Proposed Percent General Fund Change Transfer to Housing Finance Assistance Fund $864,470 $106,070 $116, % Transfer to Economic Development Loan Fund 200, N/A Transfer to Economic Development Project Fund 2,367,590 2,111,400 2,717, % Transfer to Convention Center / Coliseum Fund 961,640 1,284, , % Total Expenditures $4,393,700 $3,501,810 $3,499, % RESOURCES General Fund Other General Fund Revenues $4,393,700 $3,501,810 $3,499, % Total Resources $4,393,700 $3,501,810 $3,499, % 66

15 CAPITAL PROJECTS Listed below are the capital projects appropriated for the Economic Vitality and Diversity strategic focus area. Proposed EXPENDITURES Off Street Parking Parking Deck Renovations $100,000 Total Expenditures $100,000 FUNDING SOURCES Reserves Parking Fund $100,000 Total Funding Sources $100,000 *The annual funding of $250,000 for Convention Center Capital for was appropriated during to address unknown and deferred maintenance issues that arose during the renovation project. 67

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