cedo fy16 budget presentation may 27, 2015. what is cedo? community & economic development...

CEDO FY16

BUDGET PRESENTATIONMAY 27, 2015

WHAT IS CEDO?

Community & Economic Development Office – CEDO grows the City – the tax base, jobs, cultural awareness, community justice, housing, new development, innovation, and our quality of life

CEDO has a deep history of helping Burlington’s most in need

WHAT IS CEDO?

An agent of innovation and creativity

WHAT IS CEDO?

We keep special focus on the waterfront

WHAT IS CEDO?

A partner within the justice system

WHAT IS CEDO?

Long standing commitment to affordable housing for all.

WHAT IS CEDO?

We respond to community needs through direct outreach

WHAT IS CEDO?

We respond to community needs through direct outreach

WHAT IS CEDO?

We respond to community needs through direct outreach

WHAT IS CEDO?

A facilitator between public and private entities

WHAT IS CEDO?

A facilitator between public and private entities

WHAT IS CEDO?

A facilitator between public and private entities

WHAT IS CEDO?

A facilitator between public and private entities

WHAT IS CEDO?

Building a more vibrant, healthy and equitable City for all.

WHAT IS CEDO?

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FISCAL CHALLENGES

Recap of FY15 Challenges:

• Years of declining federal dollars

• More compliance, more restrictions

• General fund support has been unclear & uncertain

• Funding poorly aligned with work we actually do

• Work growing economy has almost no sources

• Result has been years of chronic deficits

• Borrowing to cover operating shortfall = bad practice

Added FY16 Challenges (& Opportunity):

• Exhausted prior year grant funds for eligible activities

• Challenge of six long time staff departures

• Opportunity to re-think organization

MULTI YEAR ORG GOAL:FY15 & FY16

“To develop more stable, long-term and flexible funding plan for CEDO’s future”

FY15:

• Cut costs / improve management where possible

• Establish baseline General Fund allocation

• Grow new revenue sources—e.g. parking policy

• Seed long term investments—e.g. revolving loan fund

FY16:

• CEDO to General Fund w/ three Special Revenue Funds (SRF)

• Re-organize CEDO teams to better align with funding sources—opportunity grants and economic growth

• Integrate housing throughout the organization

GENERAL FUND DEPT & 3 SPECIAL REVENUE FUNDS

CEDO General Fund:

• Non grant funded staff time and expenses

• Economic Development, Sustainability and Neighborhood Services

CEDO Special Revenue Funds (SRF):• Community Development – 301 (Grants: CDBG, AmeriCorps)

• Housing – 305 (Grants: HOME, Lead, Housing Trust Fund)

• Community Justice – 315 (Grants: RICC, JAG, COSA, VOCA, Safe Com)

Benefits:• Budgeting will be clearer and more accountable

• No co-mingling of funds

• More time to do work to grow the grand list and the economy

• Less time figuring out how we are going fund ourselves

HITTING THE THREE “F’S” :

FACTUAL: CEDO’s general fund support will no longer be spread

across multiple places that are difficult to track—going forward the

budget will be more transparent and easily accountable.

FAIR: A new home in the general fund ensures better compliance with

grant programs, more dollars to the community, and needed flexibility to

work openly growing housing, jobs and economic investment.

FORWARD: Predicable funding, aligned with work we do, lays a strong

organizational foundation for efficient deployment of program dollars to

those in need and for innovative policy, projects and business initiatives.

FY15: TEAM DIAGRAM

FY16: TEAM DIAGRAM

1. A NEW APPROACH TO HOUSING

• CEDO has a noble history of housing innovation

• Yet with all the accomplishments, our housing challenges remain

as acute as 3 decades ago—low vacancy, increasingly

unaffordable, sluggish expansion—especially downtown

• A huge issue for job growth, retention, diversity & livability

• We must do more—not a one man band—organization wide

challenge (even white boarded = CHEDO, CEDHO, HCEDO)

• Best practice is integrated: mixed use, mixed income

• Housing Action Plan = 17 work areas (codes, parking, funding, policy, etc)

• Re-org envisions housing priorities within both CHOP and SHED

2. CONSOLIDATED GRANT PROGRAMS TEAM (CHOP)

• CEDO was founded on and powered by an era of generous

federal funding

• CEDO innovated many programs and initiatives around

neighborhoods, citizen engagement and economic development

• New era of deep cuts and more restrictive federal funding

• Ineligible work activities can threaten funding

• Tendency to be siloed by program

• New approach consolidates most grant funded personnel under a

single team to allow cross-program efficiencies and share

resources and information (e.g. one touch program, Davis Bacon)

3. NEW PROJECT & POLICY INNOVATION TEAM (SHED)

• CEDO has a long history of innovative, entrepreneurial thinking

• Increasingly constrained by specific program reporting and more

stringent audits

• Administration project and policy priorities around community

building—housing, creative economy, technology, parking, green

infrastructure, and walkable city / sustainable development

projects—without funding source (except TIF districts)

• Consolidate these activities within a new Sustainable Housing

and Economic Development (SHED) team

• Team funding thru TIF and general fund gives needed flexibility to

do this work—difficult trade-offs of capacity vs fiscal capacity

FY16 TEAM GOALS

CEDO: Build a modern, fiscally responsible organization that

expands opportunity for all.

CHOP: Deliver culturally competent, opportunity programs serving

diverse & vulnerable populations (early childhood to aging) with a

focus on housing and homeless, engagement and equity.

SHED: Advance policies and projects that modernize our approach

to housing, development, and business assistance, grow the grand

list and provide broad opportunity for economic vitality.

CJC: Expand opportunities with the community to address the

effects of crime and conflict through innovative restorative practices

and strengthened support for victims and offenders.

FISCAL CHANGES: FY13 - FY14 - FY15

FY13: No plan, borrowed pooled cash to cover gap

FY14: Started the restructuring conversation

• CDBG modified reduce costs, increase capacity

• TIF emerged as a source after November 2012 vote

• Year end adjustments to minimize gap

FY15: Established baseline GF budget ~ $380,000

• ~ $115,000 in cuts and savings• ~ $200,000 GF transfer (after savings. TIF & revenue)

• ~ $180,000 gap (plan = % GR tax, parking, Browns Ct sale)

• Mixed results (GR, parking good, sale delayed litagation)

• Problem of uncertain and speculative revenue sources

FISCAL CHANGES: FY16

FY16 Net General Fund Support ~ $415,000

• ~ $200,000 GF transfer (same as FY15)

• ~ $215,000 gap made up thru portion of Brown’s Court

sale and Downtown TIF

• Activation of Downtown TIF key to prior year cost

reimbursements and stable future year source

• FY16 Tradeoff: weaning Ec Dev staff from grants frees

up > 100k for community but leaves currently vacant

policy / project position unfunded

• Some capacity ($25k) from DT TIF consultant

POSITIONS WITH % GENERAL FUND

FY16 - GENERAL FUND HOUSING & EC DEV GOALSHousing Action Plan Elements

• Neighborhood Stabilization Plan

• Inclusionary Zoning Study (with DPZ)

• Preserve Farrington’s Park (HTF)

Downtown TIF Activation

• Great Streets projects (with DPW, Parks)

• Brown’s Court soil remediation & sale

• Incur Debt by March 2016

BTV Mall Redevelopment / WF TIF

• Negotiate development agreement

• Regulatory, permit and review process

• Prep for March 2016 Waterfront TIF vote

Waterfront TIF / PIAP Projects

• Complete WAN (with DPW/Parks)

• Development agreements—Marina, New

Moran, CSC, ECHO

• Waterfront Park and Bikepath (with Parks)

Development & Infrastructure Projects

• Champlain Parkway (with DPW)

• Railyard Enterprise Project (with DPW)

• 453 Pine Street redevelopment

• Gateway District—parking, redevelopment, Memorial Auditorium, YMCA

• Burlington College (with Parks)

• Others: Grove, College, Lake, Cherry, S Winooski, Sears Lane, Pine, etc

Policy Reform & Business Support Initiatives

• Adopt downtown parking plan (with DPW)

• Adopt form based code revisions (with DPZ)

• Permit Reform Review (with DPW/DPZ)

• BTV Ignite hiring and plan (with partners)

LOOKING AHEAD: FY17

FY16 Monitoring for FY17 Planning

• Brown’s Court sale and activation of Downtown TIF district will

be tracked & factored into planning for FY17 budget .

Restore Capacity

• Restore funding for restoring unfunded policy and project

specialist as City fiscal health and priorities permit.

CURRENT ORG CHART

PROPOSED ORG CHART

QUESTIONS?

FISCAL CHANGES: FY15 (FROM MAY 2014)

1. Baseline budget

• Clear General fund allocation ($200,000)• Reduction in staff / reallocation (~$65,000)• Program adjustments / “full cost” (~$50,000)• = reduced shortfall of ~$180,000

2. Growth based revenues to fill gap

• 10% of 1st year growth parking revenues (~$50,000)• 50% share of GR growth above projected (~$105,000)• 10% share of Brown’s Court sale (~$25,000) (25% staff / 75% investment)

3. Strategic Planning

• Quarterly reporting to track progress /adjustments• CEDO “Reserve Fund” (fund if revenues exceed goals)

SET UP FOR FY16 (FROM MAY 2014)

1. FY16: Benefit of tough FY15 decisions carry forward

• Dividends of program efficiencies • Clear General Fund support

2. Exploring ideas for performance based revenues

• 8% of 2nd year growth of parking revenues• 3% share of total Gross Receipts • 1/5th of penny of Grand List• 10% share of any asset sale (25% staff / 75% investment)

3. Continue strategic planning for “Reserve Fund”