Durango Business Improvement District
BID OK 11/06, City 12/06
FY 2007 Budget & Operating Plan
Recommended by BID, OK by City
B-1 Estimated fund balance carry over as of January 1st, 2007
The District is now receiving approximately $150,000 in new property tax revenue per year. It is estimated that FY 2007 will begin with approximately $130,000 in the fund balance as of January 1, 2007. The actual fund balance will be determined 12/31/06.
R-1 Property tax revenues: Based on District ‘assessed valuation’ of property.
With a voter approved 1.5 mil levy expected to generate $150,000 per tax year, based on real property within the Durango Business Improvement District. The mil levy was rescinded from 2001 to 2003, and reapproved by District voters in November 2003, effective in the FY 2004 tax year, and will sunset at the end of FY 2010.
R-2 DATO Marketing Funds: In cooperation with the District’s efforts to promote special events marketing and downtown visitor services, the Durango Area Tourism Office has committed $25,000 in funding to supplement the $75,000 annual commitment by the District for special events, marketing support and visitor services.
R-3 Interest Income: Based on the present interest rate environment, and carry forward fund balances, the District anticipates nominal income from this source in FY 2007.
R-4 Program Income: In cooperation with the Downtown Durango office (Bob Kunkel, City of Durango), the District has generated program income to supplement existing budgets, in order to fund advertising, promotion and events within the District.
E-1 Election: The District, subject to City Council approval, may propose to hold an election (City wide) to allow for City bonds to build a Durango conference & events facility. This would be subject to an updated feasibility study and proposed conceptual plan. Further discussions with City staff and Council will be necessary prior to any formal action (to bond) takes place. This in not anticipated in FY 2007.
E-2 Business Plan (based on Vision plan): The recent downtown Durango “Vision” plan that was completed by the City anticipated a follow on Business Plan. BID is working with the City Manager’s office and downtown property owners on the details and scope of work for a possible plan to be completed in FY 2007.
E-3 Capital Fund: The Durango Downtown office (Bob Kunkel) has requested approximately $15,000 for capital improvements for FY 2007 (See attached list). The District is being asked for $5,000 of the capital items, in cooperation with the City of Durango. Consistent funding of capital items over the past 5 years has significantly improved the quality of special events in Durango.
E-4 Feasibility Studies: The District has historically taken a responsible approach to the building of new facilities, including a feasibility study prior to proposing a bond issue or large expenditures of reserves. The District is proposing to update the CSL, Int’l study [2000], in light of proposed Durango Conference & Events Center.
E-5 Administrative Expense: The District has been very careful and fiscally conservative on administrative expenses, thus retaining reserves for capital and future District purposes. It is the Districts goal to keep administrative expenses below 20% of the proposed budget. Projected FY 2006 administrative expenses are estimated at 12% of the proposed budget, and less 20% of actual expenditures. However, increasing District activities, joint projects with the DDP and the BID office will require an increase in the administrative and event/committee support for FY 2007.
E-6 Transportation (Air Service): During the initial years of the District, a nominal amount was spent on air transportation guarantees. In FY 2005, the District provided $10,000 in funds to assist the Durango Chamber/LEAD in the community based FAA ‘air service’ grant (awarded in August 2005). No request has been made for FY 2007.
E-7 Marketing Special Events: In FY 2004 the District made significant grants to a number of organizations for marketing Durango special events. District commissioned research by PEN, Inc in 2002 indicated that many Rocky Mountain towns commit tens of thousands of dollars to special event support and marketing. Special events in Durango during 20004, 2005 and 2006 are generating additional business and sales activities for businesses within the District. A specific set of grant criteria is used by the District to make grant funding decisions. In FY 2007, the District will continue to provide special event marketing funds and marketing support, based on the District guidelines.
E-8 Event & Committee Support: Working in cooperation with the downtown Durango office (City of Durango), the District will provide FY 2007 funding to the downtown Coordinator’s office to assist with event coordination and BID/DDP department support. The BID funding will be in coordination with the City Managers office, based on the emerging BID organizational structure. The District is expanding its role in working with the downtown Durango office, which is presently funded (FY 07) by the City of Durango (from both Sales tax and Lodger’s tax revenues).
E-9 Professional Fees: Legal and accounting fees for the District. In addition, specialized professional fees for special project support.
E-10 Statistical Research: Funding for survey tools, software and research for the District. The District needs additional research on visitors, special event impact and businesses economic impact within the District.
E-11 PR & Communications: It is necessary for the District to communicate via newsletters, media relations, press releases, Chamber column and other means to the public and the taxpayers in the District.
E-split: Web Communications: The District is open 24/7 for information requests, grant information, stakeholder inquiries and community service information. The BID web site has expanded to support special events, District information, research summaries and connectivity with other partners (City, DATO, Chamber, etc). The web has allow the District to keep administration costs down, and to better utilize our limited staffing resources
E-12 Meetings/Travel/Focus Groups: Travel costs for District board members and support staff, including the annual CCRA meeting. Meeting support for District sponsored meetings, Board meetings and public meetings.
E-13 Bank Service Fees: Nominal fees for banking services
E-14 Dues/Subscriptions: Costs for industry and special event publications and professional associations, such as the Colorado Community Revitalization Assn (CCRA) and the International Downtown Assn (IDA).
E-15 Office Supplies: The District opened an office at 1199 Main Avenue (Bank of Colorado), co-located with the downtown Durango office. BID has the need for supplies and some equipment, as needed to support the office staff.
E-16 Durango Branding: Best practices among Business Improvement Districts (BID) indicate that many Districts assist with retail branding and promotion for businesses within the BID. A successful downtown Durango brand and business development campaign was introduced in FY 2006. The District plans to promote downtown through branding and related marketing support during FY 2007.
E-17 Visitor Information Services: Research conducted by the District during FY 2005 (based on the Telluride model and other communities) indicated a ‘gap’ in visitor information services in the downtown Durango area. A joint venture between DATO, Chamber, BID, Fort Lewis College and the downtown Durango office during 2006 resulted in BID taking a lead role in the location, construction and assistance in staffing a downtown Durango kiosk. Built in early 2006, (subject to City land use & sign code approvals) the Kiosk has been operating daily since early June 2006. A late May to early October 2007 season is anticipated.
CR-1 Capital Reserve Account: Each year the Board has approved a specific amount of the District reserve be set-aside for a Capital Reserve Fund. This Fund is for long term capital needs and projects which may require extraordinary funding during a given budget year. In FY 2007, the Board is recommending an additional $20,000. At the end of FY 2006, it has $55,000 in the capital reserve account. A down payment towards the proposed City (Durango Vision) “wayfaring signage program” may be one possible use of these District funds.
9.20.06 Prepared by the District, Recommended by the Durango BID Board of Directors by 9/30/06, modified 11/06, and final OK by the Durango City Council by Dec 2006.
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