Economic Development Economic Development Organizational Chart

Transcription

1 Economic Development Economic Development Organizational Chart 75

2 Economic Development Economic Development Budget Summary 2015 Actuals 2016 Appropriated 2017 Recommended Agencies Economic Mobility Division 1,401,143 1,575,149 1,874,510 Business Development Division 584,055 1,173,748 1,407,762 Operations and Communications 2,894,709 1,990,544 2,538,504 Total 4,879,907 4,739,440 5,820,776 Expenditures Personnel Services 3,227,144 3,818,861 4,091,447 Services and Supplies 1,640, ,229 1,712,769 Internal Services and Misc. 11,902 16,350 16,560 Total General Fund 4,879,907 4,739,440 5,820,776 Special Revenue Funds Economic Development 5,568,127 11,909,847 23,302,211 Total Special Revenue Funds 5,568,127 11,909,847 23,302,211 Grants Grants 45,272,965 36,084,980 35,087,826 Total Grants 45,272,965 36,084,980 35,087,826 Personnel Complement General Fund General Fund Operations - Civilian Special Revenue Funds Economic Development - Civilian Total Personnel Complement Capital Improvements* Capital Improvements 1,000,000 0 Total 1,000,000 0 *Actuals are not included for capital projects by department as capital project budgets are non-lapsing. Actuals for capital funds can be found in the Financial Summary for all CIP Funds. 76

3 Economic Development Department Summary Executive Overview The Office of Economic Development (OED) strives to be a driving force that advances economic prosperity for the City of Denver, its businesses, neighborhoods, and residents. OED provides coordinated planning and implementation of initiatives designed to grow and strengthen Denver s economic and community base through four divisions and is supported generally by the Operational and Communications Division. The four programmatic divisions are: Economic Mobility Business Development Housing Workforce Development Vision OED must be boldly ambitious, with innovative, forward-thinking policies that are intent upon delivering a World-Class City where everyone matters. Mission The Denver Office of Economic Development will be a driving force that advances economic prosperity for the City of Denver, its businesses, neighborhoods and residents through purposeful and intentional economic development that: (1) stimulates balanced economic growth through business assistance, neighborhood revitalization and the development of a skilled workforce; (2) broadens the tax base; and (3) focuses on innovation, sustainability and education. This mission is delivered through programs and initiatives in coordination with private, public and non-profit partners, as well as through the leadership and work efforts of OED s work and support divisions. OED is currently focused on the following four strategic priorities, as detailed in the three-year strategic plan (primary responsible OED division is noted for each). Meeting the Workforce, Affordable and Homeless Housing Needs Challenge (Housing), Growing Denver s Next-Generation Economy (Business Development), Ensuring Economic Mobility and Opportunity for All (Economic Mobility and Workforce Development), and Providing Effective and Efficient Program Services and Outcomes (Operations and Communication) Strategies Increase the number of affordable, workforce and homeless housing units to meet the changing needs of the community; increase resources and partnerships supporting housing development and preservation; invest OED resources and encourage partner investments in a range of housing choices (type and location); and support innovative design and approaches for meeting tomorrow s housing needs. Specifically, support the annual development of at least 600 additional affordable and workforce for-sale and rental housing units to reach and exceed the Mayor s 3x5 initiative. (Sustainability) Grow and sustain Denver s economy and business environment by attracting, retaining and growing Denver s businesses, encouraging and supporting the entrepreneurial and emerging business growth, and increasing the economic and business connections to the global marketplace through market access, trade activities, and increased foreign-direct investment. (Jobs) 77

4 Economic Development Budget Summary Improve economic mobility and opportunity for all Denver residents by implementing the Collective Impact strategy and several specific programmatic actions, including (1) implementing a number of the findings and recommendations of the 2016 Gentrification Study; (2) supporting neighborhood, minority, and women-owned business growth and success; and (3) making strategic neighborhood investments and program support. (Safety Net) Strengthen organizational and resource coordination; leverage employment development and engagement, and a culture of customer service to continue delivering and achieving impacts and outcomes for Denver s residents and businesses. (Customer Service, Sustainability) Provide best practice workforce programs to meet the needs of the 21st century job markets, including adult skills and knowledge training ( stackable certificates ) and youth programs for disconnected and at-risk youths. (Children and Youth) Mission-Level Metrics Actual Actual Actual Estimated Objective Total Employment 441, , , , ,000 Employment in Targeted Biz Sectors 22.8% 22.5% 22.7% 22.9% 23.2% Jobs Growth Influenced by OED 4,190 7,394 7,240 6,200 6,200 Investments in Targeted Biz Sectors 67.0% 37.4% 32.2% 36.0% 40.0% Mayor s 3x5 Initiative (Share Achieved) 15.8% 22.3% 10.5% 14.7% 36.7% Housing Units of Affordability Created 19,082 15,827 5,702 11,450 20,000 Investments Made in Targeted Neighborhoods 26.6% 45.8% 14.6% 35.0% 40.0% Job Placement Rate 56.0% 54.0% 54.0% 55.0% 56% Youth Job Placements Performance Context Total Employment includes both private and public sector employment. This metric provides a snapshot of the strength and opportunities in Denver s economy. Employment in Targeted Sectors reflects the share of total employment in OED target industry sectors (e.g. Manufacturing, Advanced Technology, Logistics, and Professional and Business Services). Jobs Influenced through OED are direct jobs created or retained as a result of (1) Business Incentive Fund (BIF) support for recruitment or retention/expansion of a business; (2) partial business personal property tax credits for significant job creation or investment activities through the Business Investment Program (BIP); and (3) gap financing through OED s Small Business Lending Program. While 2014 and 2015 were peak years in regards to economic growth and business investment OED is forecasting growth to slow in 2016 and Investments in Targeted Biz Sectors represents the share of OED investments made to firms in the Targeted Businesses Sectors. Mayor s 3x5 Initiative is the number of housing units delivered in the given city fiscal year (Jan-Dec) as a percent completed toward meeting the 3X5 goals. 3X5 refers to the Mayor s 3X5 Challenge to the public and private sectors collectively creating, rehabilitating, and preserving at least 3,000 affordable housing units in Denver in five years. Number of Housing Units of Affordability reflects a more complete picture of the housing unit affordability 78

5 Economic Development Budget Summary achieved through various investments. The metric is simply calculated by multiplying the number of years of rental (or sales restrictions) by the units, then totaling them. For example, if OED provided funding to a 60 unit housing development project and obtained 30 units of affordable housing for 30 years, the Units of Affordability would be 900 (30x30) for that project. The decrease in 2015 was due to housing development projects started but not completed in 2015, and the increases in 2016 and 2017 are due to forecasted completions of those projects currently under construction as well as new funding sources coming online. OED s tracking system only includes units into this metric that are completed and ready for occupancy. Investments Made in Targeted Neighborhoods represents the share of OED investments made in targeted neighborhoods (Sun Valley, Westwood, Globeville/Elyria/Swansea, Montbello, and Five Points). The decrease seen in 2015 was due to a decrease in Community Development Block Grant (CDBG) funding, while increases in 2016 and 2017 are due to the implementation of the new Economic Mobility Division that will combine and leverage neighborhoods and small business opportunity resources. The combined Job Placement Rate for TANF (Temporary Aid to Needy Families), WIA (Workforce Investment Act), and Wagner-Peyser is the percentage of participants in the agency s programs who have secured employment. The effectiveness of the programs is monitored by the share of persons obtaining meaningful employment, and tracking job tenure of those successful in finding work. Youth Job Placements, both summer and year-round, provide job training and mentored employment experience opportunities for Denver youth. A measure of the outcome and focus of the OED Workforce Development programs is aiding youth as they move from the academic to the workforce stage of their life. 79

6 Economic Development Economic Mobility Division Overview The Economic Mobility Division encourages development, equity ownership (including home ownership, business ownership, Co-ops, employment stock ownership plans), and access to neighborhood programs and services to assist in creating mobility and opportunity in all of Denver s neighborhoods. In 2016, the Office of Economic Development completed a department re-organization to enhance its focus and align key activities to create synergies around mobility. OED works continuously to support neighborhood investments, business start-up and growth, job training and opportunities to encourage neighborhood reinvestment and resident opportunity. Over the past several years, OED leadership and staff, along with city leadership, have deepened the understanding of the linkages and outcomes from public and private investments in our community. In 2016, OED released the results of a closer look at the outcomes and impacts of investments in Denver s neighborhoods, the Gentrification Study: Mitigating Involuntary Displacement. OED s 2016 JumpStart and the associated Three-Year Strategic Plan incorporated a number of the 2016 study s findings and recommendations into strategies, tasks, and initiatives. EM brings together several key work teams from OED into a single group to advance the initiatives and approaches for increasing economic opportunity for all. Specifically, EM combines the Neighborhood Development and Small Business Opportunity (Minority and Woman-owned Business) programs, while coordinating investments, research and work with OED s three other program divisions. By strengthening focus, resources, and commitment, the division serves to advance economic, housing, business and employment opportunities to all of Denver s neighborhoods and residents. The EM Division also provides direct programs and services and coordinates with other OED divisions, city agencies, and private and non-private partners to increase economic opportunity, meet residents needs, and improve access to public and quasi-public programs and services. A key responsibility of EM is to encourage the economic growth and success of disadvantaged residents through business ownership, often resulting in employment opportunities for these residents. Often these businesses are located in Denver s neighborhoods, which results in both income and wealth building. This increased economic and business success can provide real change and investment in Denver s neighborhoods today and leads to increased economic sustainability and multi-generational opportunity. EM team s promotion of business ownership is focused on partnerships, with an emphasis on (1) working directly on our clients needs to access new business opportunities; (2) creating a thriving business environment; (3) building a system of technical assistance with private, non-profit and public entities; (4) and creating business success by assisting those seeking services and goods from qualified small businesses. The second key responsibility of the Division is to undertake and promote investment in targeted neighborhoods to improve access of household and residents for services and programs to meet their needs. Often neighborhoods are viewed by their building stocks and environmental character. EM recognizes a neighborhood embodies the interactions that exist between the families and residents, businesses, community support services and programs and physical assets (buildings, housing and public amenities). This awareness, and the work with many neighborhood partners, has resulted in a re-focusing of OED s efforts into a collective impact (CI) framework. Strategies Implement the CI framework as a multi-year, multi-partner coordinated investment and program while taking a support approach for neighborhood revitalization and sustainability. The Collective Impact initiative is a concerted response to concentrated neighborhood poverty and impeded economic mobility. OED is a partner organization in the CI initiatives recently initiated in Denver through the Globeville-Elyria/Swansea Impact Coalition and the West Denver Renaissance Initiative. The CI approach includes institutional and community partnerships to leverage diverse resources, physical development (for example transit and housing), economic inclusion (for example, supporting local retail and supply chain development), and community engagement to ensure residents have 80

7 Economic Mobility Division authorship in the revitalization of their neighborhoods. OED will focus specifically on business development, housing choices, community services access, job opportunities and training and educational achievement with emphasis on OED target neighborhoods (Sun Valley, Westwood, Globeville/Elyria/Swansea, Montbello, and Five Points). (Safety Net) Grow business success and increased job opportunities for certified and emerging minority/women-owned businesses through direct services and programs, including: counseling; referrals to partners for business assistance; capability and needs assessment; review and providing specialized certification statuses (e.g., Minority and Women Business Enterprise) for eligible businesses; placing eligible businesses in applicable directories and listings; and assisting businesses in making business-to-business and business-to-government connections. (Jobs) Work with Denver Public Schools, colleges and universities, early education providers, and other lifelong learning organizations to support resident s job and career opportunities. (Children and Youth) Increase the number of women and minority businesses serving as project prime contractors; including building capacity of current successful sub-contractors and increasing bidding awareness by contractors/and contract bidders. (Jobs) Work with the Colorado Fresh Food Financing Fund (Colorado Health Foundation and CHFA), the Healthy Corner Store Program, and other initiatives to increase fresh food access throughout Denver. (Safety Net) Enhance the Mentor/Protégé program for minority and women business enterprise resulting in increased business capabilities and opportunities, and greater business-to-business and subcontracting activity. (Jobs) Enforce adherence to applicable city ordinances, Equal Employment Opportunity (EEO) regulations, and federal regulations and guidelines, as well as ensures payments to all certified firms on city and federal contracts. (Safety Net) Performance Measures Actual Actual Actual Estimated Objective Business Opportunity by Denver M/WBE & DBE Firms Share of Awards 26.8% 27.8% 29.5% 32.0% 33.3% OED Targeted Neighborhoods 18.6% 12.6% 8.4% 19.8% 20.0% Average Revenue per Firm $2.41M N/A N/A N/A $3.0M Annual Goals Achievement Construction (Goal 24%) 22% 23% 28% 25% 26% Professional Services (Goal 33%) 15% 29% 35% 30% 33% DBE (Goal 33%) 36% 39% 39% 34% 37% Neighborhood Investments Residents Served by OED-Funded Organizations 30,000 30,000 28,500 30,000 26,000 Share of Funds to Targeted Neighborhoods 42.0% 51.2% 24.4% 45.0% 55.0% 81

8 Economic Mobility Division Performance Context Minority and Women Business Enterprise (MWBE) certification allows Denver area small businesses to compete for construction-related projects funded by the City and County of Denver. The impact of Executive Order 101 and associated budget changes on the MWBE awards is still being determined. Share of Awards by Denver Firms are based on the share of the total dollar value of contracts awarded during that fiscal year. The amount is calculated for Denver M/WBE and DBE firms, with the awarded contracts often being for several years of work to be completed. Share of Awards by Firms in OED Targeted Neighborhoods reflects the location of the firm, not the location of the work to be completed, and is thus a subset of the total awards (not the Denver firm share). OED target neighborhoods referred to in this document were selected in 2016 and were not used to direct funds in 2015, although there is some continuity between the 2016 target neighborhoods and focus areas used in the past (which explains the shares for 2013 and 2014). The target neighborhoods are a subset of all neighborhoods in Denver that are eligible to receive Community Development Block Grant (CDBG) funding. Average Revenue per Firm is calculated based on firm tax filings and thus is several years lagged, as firms can file amended tax returns for previous years. OED is working to obtain more timely information, and other information, to reflect the business and employment outcomes. Annual Goals are established for enterprise participation in city contracts. The percentages measure firm utilization of the certification program within each of the categories listed. Disadvantaged Business Enterprise (DBE) certification allows Denver area small businesses to compete for U.S. Department of Transportation federally-funded projects throughout the state of Colorado (including airport, highway and transit contracts). Certifications are expected to decline as businesses graduate out of disadvantaged status. Residents Served by OED-Funded Organizations provides a snapshot of the base customers served by funded organizations. The number served is impacted both by programmatic investment decisions and total funds available to be awarded. The Economic Mobility and Collective Impact frameworks will focus OED s limited resources in a way that concentrates efforts in very targeted geographic areas and resident populations. While a smaller number of residents may be served in 2017, they will receive a more comprehensive suite of services through coordinated and complementary programs. Share of Program Funds invested in Targeted Neighborhood reflects the strategy of investing limited neighborhood funds in higher need and focused neighborhoods. The target neighborhoods referred to in this document were selected in 2016 and were not used to direct funds in 2015, although there is some continuity between the 2016 target neighborhoods and focus areas used in the past (which explains the shares for 2013 and 2014) $ % Budget Highlights Actuals Appropriated Recommended Expenditures by Type Personnel Services 1,240,749 1,445,922 1,531,683 85, % Services and Supplies 156, , , , % Internal Services and Misc. 3,564 2,700 4,000 1, % 1,401,143 1,575,149 1,874, , % Expenditures by Activity Economic Mobility Administration 182, , , , % 82

9 Economic Mobility Division Budget Highlights 2015 Actuals 2016 Appropriated 2017 Recommended $ % Economic Mobility Certification 614, , , , % Economic Mobility Compliance 104,525 70,947 67,454 (3,493) (4.9%) Economic Mobility Airport Administration 25, ,597 86,311 (49,286) (36.3%) Economic Mobility Airport Compliance Unit 152, , ,411 3, % Economic Mobility Airport Concessions Unit 321, , ,603 35, % Total Program Expenditures 1,401,143 1,575,149 1,874, , % Personnel Complement (Budgeted) Economic Mobility Administration (0.20) (10.0%) Economic Mobility Airport Administration (0.75) (75.0%) Economic Mobility Airport Compliance Unit % Economic Mobility Airport Concessions Unit % Economic Mobility Certification % Economic Mobility Compliance % Total Personnel Complement % Revenue Fees 70,100 54,500 54, % Internal Service and Indirect Cost 497, , , % 568, , , % Vacancy Savings (47,096) Significant Budget s by Program Impact Description FTEs Dollars Mobility A decrease in personnel services due to a position transferring to the Human Rights and Community Partnerships Office to more closely align the position with its responsibilities. A net increase in personnel services due to the reallocation of multiple staff members to more accurately align budget with their specific workload. An increase in services and supplies to fund the City of Denver's Disparity Study which is required by ordinance every five years. (1.00) (115,000) , ,000 Capital Equipment None. 83

10 Economic Development Business Development Division Overview The Business Development Division (BD) is responsible for growing and sustaining the local business environment. The division s efforts are focused on attracting, retaining and growing Denver businesses, encouraging and supporting entrepreneurial opportunities, and increasing economic access with global markets by fostering further investment and trade. BD s efforts can be measured in jobs, investment, business and entrepreneurial activity, and trade. The Division works toward growing Denver s economy and job opportunities through working directly and indirectly with businesses and partners for business growth and job opportunity. BD s industry focus is centered on those business sectors that strengthen and diversify the local economy and increase our global marketplace. These sectors include professional and business services, technology, digital health, active lifestyle, advanced manufacturing, agribusiness, and retail. Our job opportunity efforts center on middle-skill, middlewage positions, jobs which allow for career mobility and upward movement, and those positions related to emerging and targeted sectors. As one of the nation s leading cities for entrepreneurism and innovation, the BD works to ensure an environment and support system for nurturing the next generation of businesses. BD has incorporated a broader programmatic approach to supporting business start-up, growth and expansion in Denver. BD works directly with Denver s existing and new businesses to aid in their continued success and growth. BD serves as ombudsman for businesses accessing information about the City s business environment and specific business structure or operational issues (such as zoning, licenses, and financial resources). In partnership with DEN and other strategic partners, the team promotes Denver s economic growth and success through international trade and investment through (1) encouraging exports by Denver businesses; (2) attracting foreign direct investments; (3) increasing awareness of our community and economic opportunities by hosting international delegations and dignitaries; (4) and supporting DEN s route development through international business missions, events and programs. BD maintains strong partnerships with business and community stakeholders, such as the Colorado Office of Economic Development and International Trade, the Metro Denver Economic Development Corporation, the Downtown Denver Partnership, and Denver International Airport, to support efforts in growing and expanding business opportunities. Strategies Establish an Economic Zone Program with specific industry or innovation focuses for each zone to encourage business growth and investment, job opportunities, and linkage to surrounding neighborhoods. At least one economic zone will focus on global business market opportunities and a second will center on advanced and craft manufacturing. (Jobs) Target two to three international markets (cities) and build partnerships with appropriate stakeholders (i.e. local Chambers of Commerce, business and civic leaders) to promote potential business locations and environments, and collaborate on international business development and investment opportunities. (Jobs) Enhance and maintain relationships with local business leaders, commercial brokers, local chambers, and industry associations to strengthen understanding of challenges and opportunities and shared efforts in sustaining our local business environment. (Customer Service) 84

11 Business Development Division Strengthen and facilitate an increased level of community engagement by Denver s leading businesses resulting in increased social and direct connections and investments in our neighborhoods through engagement commitments, civic leadership participation, and company/employee direct partnership with local schools and organizations. (Safety Net) Provide comprehensive programs and services designed to assist entrepreneurs at capitalizing an idea, launching a successful start-up, and growing a business to a sustainable profitability in conjunction with technology and entrepreneurial partners at The Commons on Champa. (Jobs) Expand OED s Export Promotion Program that selects and assists export-ready companies in high-growth industries and promote these companies and others in foreign recruitment trips with the aim of creating new jobs in Denver. (Jobs) Performance Measures Actual Actual Actual Estimated Objective New Businesses Established ,660 1, Small Businesses N/A 10,640 11,400 12,100 12,500 Jobs Influenced Through Business Development Programs 4,190 7,394 7,240 6,200 6,200 BIF Funds leveraged to private Investment $36.90 $30.70 $32.40 $28.00 $30.00 Small Business Loans (value) $3.9M $2.8M $0.7M $1.2M $1.5M OED Targeted Neighborhoods $1.8M $2.0M N/A $0.5M $1.0M Educational Opportunities for Entrepreneurs and Small Businesses N/A N/A N/A Performance Context New Businesses Established captures business creation and entrepreneurship as well as businesses attracted to the community. It is updated through an analysis of various public records of businesses started or paying taxes or other fees. These figures reflect changes in the Denver economy during the reporting period. Between 2014 and 2015, the total number of businesses in Denver increased by 13%. While growth in the net number of businesses has slowed down according to 2016 mid-year business counts, it is estimated that the portion of those businesses accounted for by new businesses will remain significant in 2016, and will decrease in 2017 as Denver economic growth stabilizes. Number of small businesses (employing 5 to 99 persons) in the community is a direct indicator of the business climate and environment allowing firms to prosper and economically sustain in Denver. These firms are the primary customer of many Business Development programs. Jobs influenced through Business Development Programs are direct jobs created or retained as a result of (1) Business Incentive Fund (BIF) support for recruitment or retention/expansion of a business; (2) partial business personal property tax credits for significant job creation or investment activities through the Business Investment Program (BIP); and (3) gap financing through OED s Small Business Lending Program. This number does not include indirect and induced jobs resulting from a business development project. As referenced previously, the number of new business created in 2014 and 2015 rose significantly, which directly correlates to increases in jobs influenced by BD programs over that time period. OED is forecasting that this growth will normalize towards the end of 2016 and 2017, causing the decrease in forecasted job growth. 85

12 Business Development Division BIF funds leveraged shows the relationship between incentives provided and capital investment by the organization that received the BIF directly in Denver for the project. For every city dollar invested, the performance measure each year shows amount of private dollars invested. Educational Opportunities for Entrepreneurs and Small Businesses focuses on the business environment, creating programs to strengthen Denver s emerging enterprises. It represents the number of programs and business development events offered by OED@Commons in collaboration with their business services partners at The Commons on Champa was the first year for this new metric, coinciding with the implementation of OED@Champa in collaboration with the newly opened Commons on Champa. OED anticipates growth of the program and number of events able to be offered in $ % Budget Highlights Actuals Appropriated Recommended Expenditures by Type Personnel Services 329, ,703 1,103, , % Services and Supplies 251, , ,345 (3,040) (1.0%) Internal Services and Misc. 2,888 2,660 1,500 (1,160) (43.6%) 584,055 1,173,748 1,407, , % Expenditures by Activity Business Development Administration 0 0 2,000 2, % Business Development 376,830 1,022,778 1,266, , % International Trade 93,850 42,600 42, % Business Assistance Center 113, ,370 96,945 (11,425) (10.5%) 584,055 1,173,748 1,407, , % Other Program Funding Sources Grants 16,500 16,800 16, % Economic Development SRF 236,270 70,000 70, % 252,770 86,800 86, % Total Program Expenditures 836,824 1,260,548 1,494, , % Personnel Complement (Budgeted) Business Assistance Center % Business Development % International Trade % Total Personnel Complement % Vacancy Savings (33,907) 86

13 Business Development Division Significant Budget s by Program Impact Description FTEs Dollars Business Development A net increase in personnel services due to the reallocation of multiple staff members to more accurately align budget with their specific workload ,200 Capital Equipment None. 87

14 Economic Development Operations and Communications Overview The Operations and Communications Division (OC) is dedicated to advancing the operational effectiveness and customer service of the OED, its programs and initiatives, and increasing the impacts and outcomes achieved for the residents and businesses of Denver. OC s team provides assistance and works with OED s leadership, programmatic divisions, other city agencies, and a wide variety of community partners supporting a local environment that stimulates balanced growth through job creation, business assistance, housing options, neighborhood redevelopment and the development of a skilled workforce. OC delivers theses services through the following activities: The Administration and Policy program includes departmental direction and management; policy development and direction; collaboration with the Mayor s office, other city departments and key stakeholders. Staff within this team work closely with OED leadership and divisional staff to pursue grants and other funding opportunities to bring additional resources and best practice knowledge to OED s efforts. The Communication Program promotes OED s efforts to the greater community. This group helps to promote the delivery of information and consistent messages of OED s programs and initiatives. This team works directly with City Council members, committees and staff to provide timely, relevant information on OED s activities. It also provides marketing and public relations support for all programs to increase awareness within the media and general public of OED s programs and activities. The Finance Team supports OED s programs by providing operational and budget services. With both city and federal funding, OED s budgets, contracts and compliance efforts operate in various regulatory and requirement environments. As an integral part of the OED supporting of each program division, this team works as a partner to deliver innovative, performance-orientated initiatives and outcomes for Denver residents and businesses. Strategies Leverage OED s policy, programs, and initiatives to influence and increase collective impacts and outcomes, provide support to citywide and other department s work efforts, and partner with private, other public and non-profits for advancing Denver s economic prosperity and opportunity among neighborhoods, businesses and residents. (Jobs) Promote awareness of OED programs, initiatives and achievements. Disseminate relevant, timely information using various media, including traditional media, direct community outreach events, and social media/other emerging technologies. (Customer Service) Support innovation, best practices, and strategic approaches in all aspects of OED s efforts from policy and program development, through investments and program delivery, with timely and effective support services, to communication and reporting of outcomes and impacts with a primary focus always on partners and end beneficiaries of our efforts. (Customer Service) Utilize ever-limited resources to provide tools, programs and investments in an effective, efficient, equitable manner resulting in the business, resident and neighborhood opportunities. (Sustainability) Provide transparent performance metrics and outcomes, which will inform OED and city decision makers on policies to increase economic growth and opportunities. (Sustainability) Continue implementing Peak Performance Lean practices throughout all OED divisions and work teams to increase program effectiveness and outcomes. Additionally, work to increase employee engagement and satisfaction through organizational best practices. (Customer Service) 88

15 Operations and Communications Performance Measures Actual Actual Actual Estimated Objective Population 641, , , , ,600 Residents Living Below Poverty Level 19.1% 18.3% 17.0% 16.0% 16.0% Employed Denver Residents 340, , , , ,400 Unemployment Rate 6.6% 4.8% 3.7% 3.4% 3.8% Percent of Renter-Occupied Households 45.5% 46.0% 46.5% 48.0% 49.0% Average Wage Level $29.40 $30.50 $31.33 $32.40 $33.60 Median Household Income (estimated) $50,300 $51,800 $53,200 $55,300 $57,300 Performance Context Population is estimated by the Colorado Department of Local Affairs (adjusted to January 1st) and provides a measure of the potential overall demand for various OED and other city services and programs. Residents living below poverty level reflects economic conditions for the hardest impacted residents. Poverty level itself is defined in the annual update from the Federal Government s Health and Human Services Department. Employed Denver Residents is the number of residents that are employed even if they are not employed in Denver as reported by the Local Area Unemployment Statistics (LAUS) from the Bureau of Labor Statistics. Percent of Renter-Occupied Households is an indicator reflecting the changing character of Denver s housing stock and in the short term, a reflection of the housing markets. Median household income is calculated annually by the U.S. Department of Housing and Urban Development (HUD) $ % Budget Highlights Actuals Appropriated Recommended Expenditures by Type Personnel Services 1,657,090 1,507,237 1,455,847 (51,390) (3.4%) Services and Supplies 1,232, ,317 1,071, , % Internal Services and Misc. 5,450 10,990 11, % 2,894,709 1,990,544 2,538, , % Expenditures by Activity Administration 1,873,467 1,797,276 2,151, , % Policy Team 154, , ,370 2, % Marketing and Communication 841, , , % Fiscal/IT 25,088 40,000 40, % 2,894,709 1,990,544 2,538, , % Other Program Funding Sources Economic Development SRF 503,800 1,866, ,800 (1,199,200) (64.3%) 89

16 Operations and Communications Budget Highlights 2015 Actuals 2016 Appropriated 2017 Recommended $ % Capital Projects Funds 1,000,000 0 (1,000,000) (100.0%) 503,800 2,866, ,800 (2,199,200) (76.7%) Total Program Expenditures 3,398,509 4,856,544 3,205,304 (1,651,240) (34.0%) Personnel Complement (Budgeted) Administration Marketing and Communication (3.00) 2.00 (22.6%) 0.0% Policy Team % Total Personnel Complement (1.00) (7.0%) Revenue Use Charges 160, % Internal Service and Indirect Cost 37, % 197, % Vacancy Savings (44,851) Significant Budget s by Program Impact Description FTEs Dollars Administration A decrease in personnel services due to a marketing communication specialist (1.00) (95,200) position transferring to the National Western Center Office to better align the position with assigned duties. A decrease in personnel services due to an executive director position (1.00) (149,100) transferring to the North Denver Cornerstone Collaborative Office to better align the position with assigned duties. A net increase in personnel services due to the reallocation of multiple staff ,800 members to more accurately align budget with their specific workload. An increase in services and supplies to provide funding for neighborhood projects ,000 in target areas that have been identified as underserved or distressed. An increase in services and supplies for consulting services to help with ,000 implementation, evaluation, and compliance coordination for the new contracted workforce support services evaluation model. An increase in services and supplies to support services for Denver Urban ,500 Gardens. This increase will be partially offset by other reductions in supplies. A decrease in services and supplies due to the one-time change management consulting services in 2016 to support team-building and internal communication (50,000) Capital Equipment None. 90

17 Economic Development Workforce Development Special Revenue Funds Overview OED s Workforce Development Division (WD) strives to ensure Denver has the most highly skilled and accessible workforce in the country. Nearly every company starting, growing or expanding in the city cites the talented, productive labor force as a top reason for choosing Denver as their home. WD partners with Denver s businesses and contribute to their long range success by providing access to a qualified talent pool through programs for residents seeking local jobs and careers. Much of the WD programs and services are funded through federal dollars from the U.S. Department of Labor and the U.S. Department of Health and Human Services, which are passed through recipient Colorado departments. As anticipated and shared in 2015, Denver changed its WD service delivery model in Denver competitively bid out the services of the one-stop centers, including the Colorado Works (Temporary Assistance to Needy Families (TANF)) program to leverage additional resources and increase outcomes for both its business and jobseeker customers. Denver maintains overall policy direction and oversight and has a significant aligned team who works with WD s entire network of service delivery contractors to ensure businesses and residents are able to access services easily and are adequately supported. The Workforce Development Division administers a variety of employment and training programs, including the Workforce Innovation and Opportunity Act (WIOA) and Wagner-Peyser programs. Services to adults and dislocated workers are delivered through three one-stop centers: Arie P. Taylor, Castro DHS Office and East DHS Office. Services for eligible youth, ages 16-24, are delivered at the one-stop locations as well as at various community-based organizations and are funded through the year-round WIOA Youth program. The Summer Youth Employment Program is funded through the City s General Fund and occasional grants from the Denver Department of Human Services and is fully integrated with the year-round youth program to ensure that more youth are aware of summer opportunities as well as benefit from additional programming after summer ends This division administers the Colorado Works program, which helps individuals/families receiving TANF to move from public assistance to work, placing them on a path to self-sufficiency. Strategies Assist in the training and employment of Denver s most vulnerable populations by increasing access to program opportunities, leveraging a fully aligned and integrated system to increase the number of individuals connected to employment. (Jobs) Partner with industry to support career and technical education programs in high-growth industries, and continue to develop internships/apprenticeship for youth and young adults in targeted sectors. (Children and Youth) Work with a leading national evaluator to ensure that the new service delivery model is adequately serving Denver s residents and is truly an evidence-based, comprehensive model. (Customer Service) Focus on job training initiatives designed to prepare residents of Globeville/Elyria/Swansea to obtain employment opportunities projected by the redevelopment of the National Western Center and the associated economic development opportunities. (Jobs, Safety Net) Performance Measures Actual Actual Actual Estimated Objective Workforce Development Customers Entering Employment 17,711 16,633 23,908 23,150 25,000 OED Target Neighborhoods (Adult) 3,161 3,534 4,398 4,167 6,250 People Assisted by Staff 25,097 19,747 16,995 11,469 15,000 Number Served with Barriers to Employment N/A N/A N/A 9,619 11,000 Total Youth Served 2,712 2,997 2,677 1,915 2,300 91

18 Workforce Development Special Revenue Funds Performance Measures Actual Actual Actual Estimated Objective OED Targeted Neighborhoods (Youth) 1,251 1,239 1, ,150 Employer Penetration Rate N/A N/A N/A 4.8% 7.0% Repeat Business Customers Rate N/A N/A N/A 4.4% 9.0% Performance Context Customers entering employment is the number of participants who have secured unsubsidized employment across all workforce development programs. This demonstrates program effectiveness by tracking job placements and wages of those successful in finding work. OED Targeted Neighborhoods (Adult) refers to workforce development in targeted neighborhoods mentioned previously in this document and in this case refers to those who have entered employment. People staff assisted is the number of participants who received services with the assistance of OED staff and/or OED contractors through all workforce development programs. OED notified workforce development staff of impending layoffs in July 2015, which led to staff attrition and an increase in worker caseload. Remaining staff were laid off by July 2016, and Workforce Development Switched to a new model where all services are being provided by contractors. Number served with barriers to employment shows the number of unique participants served with a WIOA identified barrier to employment across all programs. This population identifies those participants with indicators such as offender, single parent, veteran, high school dropout, pregnant/parenting youth, basic skills deficient, etc. Total youth served is the number of Youth served across all OED Workforce Development funded programs. OED notified workforce development staff of impending layoffs in July 2015, which led to staff attrition and an increase in worker caseload. Remaining staff were laid off by July 2016, and Workforce Development Switched to a new model where all services are being provided by contractors. OED Targeted Neighborhoods (Youth) refers to workforce development in targeted neighborhoods mentioned previously in this document. This generally consists of the number of youth that enter remedial education, skills certifications, start entry into post-secondary education, summer work experiences, career academies, etc. (typically not employment). In 2016 OED target neighborhoods were used to provide metrics across all years which is a new way for OED to focus on where the department is making investments. Employer penetration rate provides a measure for the ability of OED to engage employers in Denver with workforce development. The rate is defined as the number of employers who received a service or other assistance divided by the total number of employers in the region. These are preliminary estimates while waiting for guidance from Colorado Department of Labor & Employment. The increase in 2017 assumes that the State will be implementing better ways of tracking this metric moving forward. Repeat business customers rate is a new metric and measures the rate of repeat businesses provided services this year that have previously been provided a service within the prior 3 years. These are preliminary estimates, while waiting for guidance from Colorado Department of Labor & Employment on tracking this metric. 92

19 Workforce Development Special Revenue Funds Budget Highlights Expenditures by Type (Appropriated SRFs) 2015 Actuals 2016 Estimated 2017 Recommended $ % Personnel Services 1,587,832 2,206, ,500 (1,954,162) (88.6%) Services and Supplies 448, , ,200 (458,891) (58.8%) Internal Services and Misc. 5,828 11,687 0 (11,687) (100.0%) Expenditures by Activity (Appropriated SRFs) Expenditures by Type Total 2,042,203 2,998, ,700 (2,424,740) (80.9%) Administration 601,278 1,389, ,700 (815,313) (58.7%) Employment First Admin. 1,440,925 1,609,427 0 (1,609,427) (100.0%) Other Program Funding Sources Workforce Development Grants Expenditures by Activity Total 2,042,203 2,998, ,700 (2,424,740) (80.9%) Career Opportunities in Retail , , % Denver Urban Renewal Authority (DURA) Construction Sector 98, % Disabled Vets Outreach Program (DVOP) 18,792 32,000 28,000 (4,000) (12.5%) EDW Hire for Colorado Initiative 43, ,832 0 (137,832) (100.0%) Employment Support Fund 858,704 1,032,885 1,060,011 27, % Ex-Offender Services for Youth 726, % Governor's Summer Job Hunt 43,596 44,000 44, % H-1B Ready to Work Grant 549,208 1,892,635 1,683,391 (209,244) (11.1%) H-1B Technical Skills Training Grant 129, % Local Veterans Employment Representative(LVER) 2,194 8,000 7,000 (1,000) (12.5%) TAA Case Management 2,899 16,768 16, % TANF Case Mgmt/Employ/Training 8,762,698 7,500,000 7,500, % Veterans Workforce Investment Program 19, % Wagner-Peyser 1,585,271 1,297,101 1,294,673 (2,428) (0.2%) WIA Title I Adult 1,480, ,000 0 (526,000) (100.0%) WIA Title I Dislocated Workers 547, ,000 0 (200,000) (100.0%) WIA Title I Youth 1,287, ,000 0 (396,000) (100.0%) WIOA Adult 393,046 1,069,277 1,178, , % WIOA Dislocated Worker 238, , , , % WIOA Youth 462,687 1,466,231 1,476,050 9, % WOIA Workforce Performance Incentive ,462 21, % Workforce Development SRF Total 17,252,708 16,390,244 15,684,989 (705,255) (4.3%) DETA Special Projects 64,922 60,000 39,885 (20,115) (33.5%) MOWD General Cost Pool 453, % Total 518,626 60,000 39,885 (20,115) (33.5%) 93

20 Workforce Development Special Revenue Funds Budget Highlights 2015 Actuals 2016 Estimated 2017 Recommended $ % Other Program Funding Sources Total 17,771,335 16,450,245 15,724,874 (725,371) (4.4%) Total Program Expenditures 19,813,538 19,448,684 16,298,574 (3,150,110) (16.2%) Personnel Complement (Budgeted) Administration (1.00) (100.0%) Employment First Admin (19.28) (100.0%) Personnel Complement (Budgeted) Total (20.28) (100.0%) Other Program Funds FTE Grants Employment Support Fund (7.37) (67.0%) Governor's Summer Job Hunt % H-1B Ready to Work Grant % TANF Case Mgmt/Employ/Training (28.60) (68.0%) Wagner-Peyser (6.53) (57.6%) WIA Title I Adult (11.23) (100.0%) WIA Title I Dislocated Workers (7.99) (100.0%) WIOA Adult % WIOA Dislocated Worker % WIOA Youth (1.31) (25.2%) Other Program Funds FTE Total (56.46) (60.9%) Total Personnel Complement (76.74) (67.9%) Revenue Internal Service and Indirect Cost 1,439, % Miscellaneous Other 573, % Revenue Total 2,013, % Significant Budget s by Program Impact Description FTEs Dollars Community Workforce Development The Career Opportunities in Retail is a newly awarded grant which will begin to be administered in the upcoming fiscal year. A decrease to the Disabled Veterans Outreach Program (DVOP) grant expenditures due to an anticipated decrease in Federal funding in A decrease to the EDW Hire for Colorado Initiative grant expenditures due to an end date of December 31st, An increase to the Employment Support fund expenditures due to forecasted projects in the current fiscal year moving to A decrease to the H-1B Ready to Work grant expenditures due to a reduction of funding and a grant end date in the upcoming fiscal year. A decrease to the Local Veterans Employment Representative (LVER) grant expenditures due to an anticipated decrease in Federal funding in ,000 (4,000) (137,800) 27,100 (209,300) (1,000) 94