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

Special Service Areas (SSAs)

• Clean. Green. Safe.

Community Meeting

SSA #49 South Shore &

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 7. Personnel

Work plans assembled annually from this list

Cannot exceed 30%

• f levy amount

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

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

SSA Commission

• 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

Service Provider

SSA Management Flow Chart

City of Chicago Cook County

Treasurer

City Comptroller Assessor SSA Bank Acct. SSA Commission

Service Provider Agency

HED (lead dept) and

• ther depts

SSA Subcontractors Service Provider Agreement

SSA Tax Levy

Subcontract Agreement

City Council

Legislation Funding

• 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

Vetting Overview

2018 SSA Creation Timeline

Jan- Mar 2017 June 2017 Oct- Dec 2017 Dec 2017 Jan 2018 March

• r Sept

2018 Apr- May 2017

Thank You SSA #49 South Shore & City of Chicago

Department of Planning and Development David L. Reifman, Commissioner

Mark Roschen, Assistant Commissioner 312-744-1083 mark.roschen@cityofchicago.org

Bureau of Economic Development, DPD

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 Taste of Ravenswood Ravenswood Farmers Market

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

Corridor Responses Ravenswood 29 Lawrence 12 Other 8 Damen 7 Montrose 4 Wilson 4 Clark 2 Business owner responses

2017 Budget

2015 Levy Rate: 0.300% 2016 Levy, 2017 Budget Items

Budget Category Levied Amount (not full budget amount)

1.00 Customer Attraction $ 83,149 2.00 Public Way Maintenance & Aesthetics $ 192,400 3.00 Sustainability and Public Places $ - 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

9% 11.3% 43.9% 23% 12.8% 9.3% 12.8% 49.8% 28.1% 0% $0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 Advertising & Promotion Public Way Aesthetics Public Way Maintenance Administration & Compliance Planning & Development

Total Spent

Ravenswood SSA #31 2016 Budget vs. 2015 Actuals

2016 Budget 2015 Actuals

Existing SSA & Proposed Expansion

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

Parc rcel Distri ribution EAV Distri ribution

Parcels & EAV by Ward

O'Connor 1.9% Cappleman 6.2% Pawar 91.9% O'Connor 1.2% Cappleman 6.6% Pawar 92.1%

0.7% 8.3% 23.6% 8.9% 49.1% 9.0% 0.0% 0.3% 0.3% 3.3% 57.2% 3.8% 24.0% 2.6% 8.1% 0.7%

SF Residential MF Residential Condominium Mixed-Use Commercial Industrial Exempt & RR Vacant

Parc rcel Distri ribution EAV Distri ribution

Parcels & EAV by Land Use

Land Use:

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)

SSA Reconstitution and Expansion

Number of PINS 2015 Equalized Assessed Value (EAV) Estimated SSA Tax at 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)

= Fully Assessed PINs less TIF Increment 2,234 $136,094,744 $435,503

+ 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

In-TIF Max. T ax Bill: Condo on Clark Street

▪ $400,000 – Assessor’s Market Value ▪ Homeowner Exemption

Taxing District 2015 Tax 2015 Rate 2015 %

MISCELLANEOUS TAXES

Metro Water Reclamation Dist of Chicago 124.77 0.426 1.76% Parks-Museum/Aquarium Bond 2.93 0.010 0.04% Chicago Park District 108.96 0.372 1.54% Miscellaneous Taxes Total 236.66 0.808 3.34%

SCHOOL TAXES

Board of Education Chicago 1,011.95 3.455 14.31% Chicago Community College District 51.84 0.177 0.73% School Taxes Total 1,063.79 3.632 15.04%

MUNICIPALITY/TOWNSHIP TAXES

TIF-Chicago-Clark/Montrose 4,973.51 0.000 70.32% Chicago Special Service Area 31 87.87 0.300 1.24% Chicago School Bldg & Imp Fund 39.25 0.134 0.55% Chicago Library Fund 36.03 0.123 0.51% City of Chicago 453.69 1.549 6.41% Municipality/Township Taxes Total 5,590.35 2.106 79.03%

COOK COUNTY TAXES

Cook County Forest Preserve District 20.21 0.069 0.29% County of Cook 84.64 0.289 1.21% Cook County Public Safety 43.06 0.147 0.61% Cook County Health Facilities 33.97 0.116 0.48% Cook County Taxes Total 181.88 0.621 2.59% (Do not pay these totals) 7,072.68 7.167 100.00%

In-TIF Max. T ax Bill: Condo on Clark Street

▪ $400,000 – Assessor’s Market Value ▪ Homeowner Exemption ▪ For those already in the SSA, at levy cap, combined taxes could increase 0.28% from $7,073 to $7,092 ▪ 70.3% of SSA revenue goes to the TIF

Taxing District 2015 Tax 2015 Rate 2015 %

MISCELLANEOUS TAXES

Metro Water Reclamation Dist of Chicago 124.77 0.426 1.76% Parks-Museum/Aquarium Bond 2.93 0.010 0.04% Chicago Park District 108.96 0.372 1.54% Miscellaneous Taxes Total 236.66 0.808 3.34%

SCHOOL TAXES

Board of Education Chicago 1,011.95 3.455 14.27% Chicago Community College District 51.84 0.177 0.73% School Taxes Total 1,063.79 3.632 15.00%

MUNICIPALITY/TOWNSHIP TAXES

TIF-Chicago-Clark/Montrose 4,987.39 0.000 70.32% Chicago Special Service Area 31 93.73 0.320 1.32% Chicago School Bldg & Imp Fund 39.25 0.134 0.55% Chicago Library Fund 36.03 0.123 0.51% City of Chicago 453.69 1.549 6.40% Municipality/Township Taxes Total 5,610.09 2.126 79.10%

COOK COUNTY TAXES

Cook County Forest Preserve District 20.21 0.069 0.28% County of Cook 84.64 0.289 1.19% Cook County Public Safety 43.06 0.147 0.61% Cook County Health Facilities 33.97 0.116 0.48% Cook County Taxes Total 181.88 0.621 2.56% (Do not pay these totals) 7,092.42 7.187 100.00%

$ 19.74 Total New Taxes Raised by SSA at Tax Cap $ 13.88 SSA Money to TIF $ 5.86 SSA Money to SSA

Expansio sion Area Max. Tax Bill: Mixed-Use Building on Irving Park Road

▪ $999,000 – Assessor’s Market Value ▪ Ground floor retail with residential above

Taxing District 2015 Tax 2015 Rate 2015 %

MISCELLANEOUS TAXES

Metro Water Reclamation Dist of Chicago 2,837.33 0.426 6.20% Parks-Museum/Aquarium Bond 66.6 0.010 0.15% Chicago Park District 2,477.67 0.372 5.42% Miscellaneous Taxes Total 5,381.60 0.808 11.77%

SCHOOL TAXES

Board of Education Chicago 23,011.65 3.455 50.31% Chicago Community College District 1,178.89 0.177 2.58% School Taxes Total 24,190.54 3.632 52.89%

MUNICIPALITY/TOWNSHIP TAXES

Chicago School Bldg & Imp Fund 892.49 0.134 1.95% Chicago Library Fund 819.23 0.123 1.79% City of Chicago 10,316.94 1.549 22.56% Municipality/Township Taxes Total 12,028.66 1.806 26.30%

COOK COUNTY TAXES

Cook County Forest Preserve District 459.57 0.069 1.00% County of Cook 1,924.84 0.289 4.21% Cook County Public Safety 979.08 0.147 2.14% Cook County Health Facilities 772.61 0.116 1.69% Cook County Taxes Total 4,136.10 0.621 9.04% (Do not pay these totals) 45,736.90 6.867 100.00%

Expansio sion Area Max. Tax Bill: Mixed-Use Building on Irving Park Road

▪ $999,000 – Assessor’s Market Value ▪ Ground floor retail with residential above ▪ For those not already in the SSA, maximum taxes would increase 4.66% (ex: from $45,737 to $47,869)

$ 2,131.32 Total New Taxes Raised by SSA at Tax Cap $ - SSA Money to TIF $ 2,131.32 SSA Money to SSA

Taxing District 2015 Tax 2015 Rate 2015 %

MISCELLANEOUS TAXES

Metro Water Reclamation Dist of Chicago 2,837.33 0.426 5.93% Parks-Museum/Aquarium Bond 66.60 0.010 0.14% Chicago Park District 2,477.67 0.372 5.18% Miscellaneous Taxes Total 5,381.60 0.808 11.24%

SCHOOL TAXES

Board of Education Chicago 23,011.65 3.455 48.07% Chicago Community College District 1,178.89 0.177 2.46% School Taxes Total 24,190.54 3.632 50.54%

MUNICIPALITY/TOWNSHIP TAXES

Chicago Special Service Area 31 2,131.32 0.320 4.45% Chicago School Bldg & Imp Fund 892.49 0.134 1.86% Chicago Library Fund 819.23 0.123 1.71% City of Chicago 10,316.94 1.549 21.55% Municipality/Township Taxes Total 14,159.98 1.806 29.58%

COOK COUNTY TAXES

Cook County Forest Preserve District 459.57 0.069 0.96% County of Cook 1,924.84 0.289 4.02% Cook County Public Safety 979.08 0.147 2.05% Cook County Health Facilities 772.61 0.116 1.61% Cook County Taxes Total 4,136.10 0.621 8.64% (Do not pay these totals) 47,868.22 7.187 100.00%

Discussion