Reconstitution Proposal 2018-2033 15 years Agenda Introductions - PowerPoint PPT Presentation

Greater Ravenswood Chamber of Commerce & Special Service Area #31 Reconstitution Proposal 2018-2033 15 years

Agenda ▪ Introductions  Ald. Pawar’s office  SSA Committee Member ▪ SSA Overview - City of Chicago ▪ Overview of SSA 31 Services & Budget  Megan Bunimovich, Greater Ravenswood Chamber of Commerce / SSA 31 ▪ Financial Analysis of Reconstitution & Proposed Expansion  Geoff Dickinson, SB Friedman

SSA #49 South Shore & Special Service Areas (SSAs) Clean. Green. Safe. Community Meeting David L. Reifman Commissioner

What is a SSA? Special real estate taxing district , not an agency, but rather a geographical area The City as the taxing body contracts with service providers to administer SSA programs Funds additional services beyond the City’s general services This is a self-imposed tax that can be used in a specific ways, to address the concerns of the taxpayers Enabled through state statute and city ordinance

Current SSAs • 53 active SSAs • 44 Service Provider Agencies • 450+ Commissioners • First SSA created in 1977 • 2017 Budgets = $25.3 million

Authorized Service Categories 1. Customer Attraction 2. Public Way Aesthetics 3. Sustainability and Public Places 4. Economic/Business Development 5. Safety Programs 6. SSA Management Cannot exceed 30% of levy amount 7. Personnel Work plans assembled annually from this list

Legislation

Key Legislation for SSAs • Illinois State Statute: SSA Tax Law • City Ordinances • Open Meetings Act • Freedom of Information Act • Governmental Ethics Ordinance

Legislation – City Ordinances • Establishment Ordinance (one time) – Sets Boundaries – Sets Term – Sets Tax Rate Cap – Commission: Qualifications, Appointment, Powers – Authorizes DPD to enter into Service Provider Agreement • Levy Ordinance (annual) – Annual levy and associated tax rate – Budget (levy funds + carry-over funds) – Authorizes DPD to enter into Service Provider Agreement

Management Roles • SSA Commission • Service Provider Agency

SSA Commission Powers and Authorities • Approve annual tax rate, services, budget, service provider • Authorize budget line item changes • Review vendor finalists and approve subcontracts • Monitor all SSA expense reports provided by Service Provider agency • Create and amend Commission bylaws

Service Provider • Day-to-day management of vendors and services • Manage vendor selection and RFP process • Ensure legal and contract requirements are fulfilled • Prepare reports to DPD and SSA commission • Recruit commissioners and manage nominations and renewals

SSA Management Flow Chart Legislation Funding City of Cook Chicago County City Council Treasurer Assessor SSA HED (lead SSA Tax City Commission dept) and Comptroller Levy other depts Service Provider Agreement SSA Bank Service Acct. Provider Agency Subcontract Agreement SSA Subcontractors

Vetting Overview • SSA Commissioners – Require Mayoral nomination and City Council approval – No debts to City or Child Support – Annual City Ethics Statements • Service Provider – No debts to City or Child Support – Economic Disclosure Statement with City of Chicago – In good standing with State of Illinois • City monitors on behalf of taxpayers – Reviews annual audits – Limits administrative expenses – Reviews Performance metrics

2018 SSA Creation Timeline Oct- Jan March Apr- June Dec Jan- 2017 Dec 2018 or Sept May 2017 Mar 2017 2018 2017 2017

SSA #49 South Shore & Thank You Mark Roschen , Assistant Commissioner 312-744-1083 mark.roschen@cityofchicago.org Bureau of Economic Development, DPD City of Chicago Department of Planning and Development David L. Reifman, Commissioner

SSA #31 Mission To sustain the competitiveness of the commercial, industrial and residential districts, and clean, beautify and brand the area as an inviting, identifiable and attractive community.

Existing SSA & Proposed Expansion Proposed Expansion Area

SSA #31 Programs

Public Way Maintenance 1,306 bags of trash collected 326 tree beds landscaped 34.3” of snow removed 26 planters maintained 3 miles of sidewalks powerwashed

Aesthetics & Beautification $17,000+ spent on façade rebate program 380 poles decorated for holidays 52 street banners hung 25 bike racks installed

Public Art Program

Community Events Unwrap Ravenswood Ravenswood Art Walk Ravenswood Farmers Market Taste of Ravenswood

Current SSA Commissioners Name Business/Affiliation Paul Kartcheske Black Ensemble Theater David Berger Berger Development Stephanie Spiegel Weil Foot & Ankle Institute Nick Yassan Rany Management Barbara Bolsen The Night Ministry

Reconstitution Committee Members Name Business/Affiliation Jenny Beorkrem Ork Posters & Neighborly Jason Burrell The Long Room Laura Cripe Moss Design Elizabeth Fiersten Manifold Bob Fry Catalyst Insurance Sidonie Gaude Spoken Cafe Lori Gee Ravenswood Community Services Paul Karteshke Black Ensemble Theater Darren McGraw Ampersand Wine Bar Michael Prince Beyond Design Kathy Rojina Hayes Properties Nick Yassan Rany Management

2016 Needs Assessment Results 102 total responses Business owner responses Corridor Responses Ravenswood 29 Lawrence 12 Other 8 Damen 7 Montrose 4 Wilson 4 Clark 2

2017 Budget 2016 Levy, 2017 Budget Items Levied Amount Budget Category (not full budget amount) 1.00 Customer Attraction $ 83,149 2.00 Public Way Maintenance & Aesthetics $ 192,400 2015 Levy Rate: 3.00 Sustainability and Public Places $ - 0.300% 4.00 Economic/ Business Development $ 1,000 5.00 Safety Programs $ - 6.00 SSA Management & Compliance $ 119,089 Loss Collection (Unpaid Taxes) $ 12,275 $ 407,913

SSA #31 2016 Budget Ravenswood SSA #31 2016 Budget vs. 2015 Actuals $250,000.00 43.9% $200,000.00 49.8% $150,000.00 Total Spent 23% 28.1% $100,000.00 12.8% 11.3% 12.8% $50,000.00 9% 9.3% 0% $0.00 Advertising & Promotion Public Way Aesthetics Public Way Maintenance Administration & Compliance Planning & Development 2016 Budget 2015 Actuals

Existing SSA & Proposed Expansion PINS within Existing SSA 2,234 PINS within Expansion Area 8 Total PINS 2,242

Parcels & EAV by Ward EAV Distri ribution Parc rcel Distri ribution O'Connor O'Connor Cappleman 1.2% 1.9% Cappleman 6.6% 6.2% Pawar Pawar 91.9% 92.1%

Parcels & EAV by Land Use Parc rcel Distri ribution EAV Distri ribution 0.3% 0.3% 0.7% 0.7% 3.3% 0.0% 2.6% 8.1% 9.0% 8.3% Land Use: SF Residential MF Residential Condominium 23.6% Mixed-Use 24.0% Commercial Industrial 57.2% Exempt & RR 49.1% Vacant 3.8% 8.9%

T ax Cap ▪ SSA Tax Cap  Maximum rate charged annually over 15-year life of the SSA ▪ To maintain current level of service, SSA Tax Cap will not need to be increased  Based on future projections of income and expenses ▪ Proposed Continued SSA Tax Cap: 0.320%  SSA Tax Rate in 2015: .300%

Maximum Potential SSA Revenues (near term with expansion) 2015 Equalized Estimated Number of Assessed Value SSA Tax at SSA Reconstitution and Expansion PINS (EAV) Proposed Cap Fully Assessed PINs 2,234 $220,870,197 $706,785 - less increment from PINs Located within TIF Districts Clark/Montrose (Expires 2022) 542 ($31,348,880) ($100,316) Ravenswood (Expires 2029) 578 ($9,501,441) ($30,405) Western Avenue North (Expires 2024) 390 ($39,949,106) ($127,837) Western Avenue South (Expires 2024) 109 ($3,976,026) ($12,723) $435,503 = Fully Assessed PINs less TIF Increment 2,234 $136,094,744 + Expansion Area PINs 8 $1,490,307 $4,769 TOTAL (estimated max. taxes payable): 2,242 $137,585,051 $440,272 SSA taxes only go SSA from the Base EAV or current EAV (if below base) of PINs ▪ located within TIF Districts. SSA taxes on values above base go to TIF fund(s).

T ax Rate Overview ▪ 6.867% - City Tax Rate without SSA (2015) ▪ 0.320% - Proposed Continued SSA Tax Cap ▪ 7.187% - Composite Tax Rate with SSA ▪ For those not already in the SSA, the maximum tax increase would be 4.66% under proposed levy cap