HomeMy WebLinkAboutIII. A. Town Center SSD Update 1.14.2025TOWN CENTER SSD
Emily Archer, Economic Development Deputy Director
JANUARY 14, 2025
Purpose
•Provide a background Town Center Special
Service District (SSD) Fund
•Review current status and challenges with
the SSD Fund
•Present alternatives for City Council’s
consideration to make the SSD sustainable
SSD Background
•The Town Center SSD was created by Council action
on May 14, 2002 to fund operating expenditures
related to Town Center maintenance and operations.
•Funded through a real estate surcharge tax rate:
•FY 2002-03 of 57¢
•FY 2007-08 of 50¢
•FY 2008-09 of 45¢
•Base year assessments = $18.5M
•FY 24 assessments = $535.9M
•$87.9M (Residential)
•$448M (Commercial)
SSD
Boundary
•31 acres
•11 blocks
•5 Parking
Garages
(4,381 spaces)
•SSD boundary
last modified
in 2019
SSD Fund Utilization
Landscape Services
4%
Garage
Maintenance
23%
Plaza Maintenance
4%
Block by Block
12%
Security Services
15%
Entertainment
Services
11%
Utilities, Custodial
& Insurance
14%
Transfers to Other
Funds
17%
$3,936,245 $3,866,576 $3,942,688 $4,021,082
$4,101,829 $4,184,998
$3,105,617 $3,315,329 $3,364,834 $3,415,280 $3,466,684 $3,519,068
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
Expenditures Revenue
-FY24 FY25 FY26 FY27 FY28 FY29
Revenues Less
Expenditures (830,629)(551,247)(577,853)(605,803)(635,145)(665,934)
Cumulative Fund Balance 1,132,224 580,977 3,123 (602,680)(1,237,825)(1,903,758)
Challenges and
Guidance To Date
•Trend of costs outpacing growth first noted in
2023 Five Year Forecast
•At Briefing Nov. 21, 2023, City Council directed
staff to monitor the SSD for another year and
provide updated options for consideration in
the FY 2025-26 Budget
•Based on actual spend and current revenue
assumptions, projections still indicated the SSD
will be in a negative position in FY 2025-26
Alternatives for
Consideration
1.Service Reduction:
•Primary focus on infrastructure maintenance
2.Rate Right-Sizing:
•Ensure the surcharge tax rate is sustainable for all
current services
3.Blended Approach:
•Moderate reductions to service delivery and increase to
surcharge rate
4.Temporary Funding:
•Alternative funding source(s) for immediate needs while
further study is conducted and public input gathered
4. Temporary Funding Alternative
Potential Temporary Funding from the Central Business District –South
Tax Increment Financing (TIF) Fund
•Current $12.9 Mil fund balance
•Could declare a one-year $1,000,000 surplus for the SSD
During the year evaluate Town Center public space maintenance needs
and services comprehensively:
•Conduct workshops, surveys, and public forums for input with commercial
and residential stakeholders to reflect diverse perspectives
•Gain feedback on community priorities for maintenance and services
•Prioritize funds for impactful sustainable projects, avoiding short-term fixes
•Address revenue generation with innovative and future-proof solutions
Alternatives for
Consideration2
1.Service Reduction:
•Primary focus on infrastructure maintenance
2.Rate Right-Sizing:
•Ensure the surcharge tax rate is sustainable for all
current services
3.Blended Approach:
•Moderate reductions to service delivery and increase to
surcharge rate
4.Temporary Funding:
•Alternative funding source(s) for immediate needs while
further study is conducted and public input gathered
Discussion