CanadaCanadaPresentation to Mayor Leppert and
Dallas City Council by the
Consul General of Canada16 April 2008
2
CNN’s Canada ??CNN’s Canada ??
3
4
Comparing CanadaComparing Canada
PopulationTexas – 23 millionOntario – 12 million (Greater Toronto – 6 million)
U.S. – 305 million–California – 36 million
Canada – 33 million
GDPU.S. – $13 trillionCanadian - $1.3 trillion
PopulationTexas – 23 millionOntario – 12 million (Greater Toronto – 6 million)
U.S. – 305 million–California – 36 million
Canada – 33 million
GDPU.S. – $13 trillionCanadian - $1.3 trillion
5
Democracy with DifferencesDemocracy with Differences
Constitutional Monarchy
Parliamentary System
Provincial responsibility – for resources and health care
Officially Bilingual
Multicultural
First Nations
Constitutional Monarchy
Parliamentary System
Provincial responsibility – for resources and health care
Officially Bilingual
Multicultural
First Nations
6
7
Comparison of Total Government Financial Balances1Comparison of Total Government Financial Balances1
Per cent of GDPPer cent of GDP
1 The OECD uses the term “financial balance” to mean “budgetary balance”.
200720072006 actual2006 actual 20082008
Best fiscal situation in the G7Best fiscal situation in the G7
-5
-4
-3
-2
-1
0
1
2
G7average
Germany Italy France UnitedKingdom
UnitedStates
Japan Canada
8
The Evolution of Federal and Provincial-Territorial Budgetary BalancesThe Evolution of Federal and Provincial-Territorial Budgetary Balances
Both levels of government are in a sound fiscal position
Both levels of government are in a sound fiscal position
-10
-5
0
5
10
15
20
25
1999-00 2001-02 2003-04 2005-06 2007-08
Total Provincial-Territorial Federal Government
$ billions
-10
-5
0
5
10
15
20
25
1999-00 2001-02 2003-04 2005-06 2007-08
Total Provincial-Territorial Federal Government
$ billions
9
Canada-U.S. Exchange RateCanada-U.S. Exchange Rate
The value of the Canadian dollar has risen and has been volatile
The value of the Canadian dollar has risen and has been volatile
US$/C$US$/C$MonthlyMonthly
0.60
0.65
0.70
0.75
0.80
0.85
0.90
0.95
1.00
1.05
1.10
2002 2003 2004 2005 2006 2007
0.92
0.94
0.96
0.98
1.00
1.02
1.04
1.06
1.08
1.10
Sep Oct Nov Dec Jan
Daily
10
Employment and the Unemployment RateEmployment and the Unemployment Rate
Best job market in a generationBest job market in a generation
ThousandsThousands Per centPer cent
00
200200
400400
600600
800800
10001000
12001200
14001400
Jan 2003Jan 2003 Jul 2003Jul 2003 Jan 2004Jan 2004 Jul 2004Jul 2004 Jan 2005Jan 2005 Jul 2005Jul 2005 Jan 2006Jan 2006 Jul 2006Jul 2006 Jan 2007Jan 2007 Jul 2007Jul 20075.25.2
5.65.6
6.06.0
6.46.4
6.86.8
7.27.2
7.67.6
8.08.0
Cumulative Change in Employment (left scale)Cumulative Change in Employment (left scale)
Unemployment Rate (right scale)Unemployment Rate (right scale)
Employment rate at record high
111 Agriculture, fishing and hunting.
Canadian economy is undergoingmajor structural shifts
Canadian economy is undergoingmajor structural shifts
Real GDP Growth by SectorSince December 2005
Manufacturing Real GDP Growth by Industry Since December 2005
-15 -10 -5 0 5 10 15
per cent
Mining, oil andgas
Utilities
Real estate,rental and leasing
Retail trade
Wholesale trade
Construction
Other services
Forestry andlogging
-20 -15 -10 -5 0 5 10 15
Other
Computer and Electronic
Other transportation (air, rail, ship)
Food, beverage, tobacco
Machinery
Plastic, rubber & fabricated metals
Electrical equipm. and appliance
Primary metal
Chemical & pharmaceutical
Motor vehicles & parts
Wood, furniture & non-metallic
Petroleum and coal
Pulp, paper & printing
Textiles, clothing & leather
Manufacturing average
Manufacturing average
Total economy average
Total economy average
per cent
Other primary1
Manufacturing
Publicadministration
Finance andinsurance
12
Despite declines in manufacturing, provinces have generally experienced solid job growth
Despite declines in manufacturing, provinces have generally experienced solid job growth
Total Employment Growth by Region Since December 2005
Total Employment Growth by Region Since December 2005
Data is available up to November 2007.
Manufacturing Employment Growth by Region Since December 2005
Manufacturing Employment Growth by Region Since December 2005
Data is available up to November 2007.
-15
-10
-5
0
5
10
AtlanticCanada
Quebec Ontario WesternCanada
0
1
2
3
4
5
6
7
8
AtlanticCanada
Quebec Ontario WesternCanada
Per centPer cent
National average = 4.5%National average = 4.5%
Per centPer cent
National average = -7.0%National average = -7.0%
13
Canada and the US are each other’s largest trading partner...
Canada and the US are each other’s largest trading partner...
The US trades more with Canada than with any other country.
The US trades more with Canada than with any other country.
Canada’s trade* with the US is three times the size of its trade with the rest of the world.
Source: Statistics Canada
Distribution of U.S. Trade* - 2006
Canada18.5%
China11.9%
Mexico11.5%
Japan7.2%
Germany4.5%
All Others46.5%
Source: World Trade Atlas * Merchandise trade, February 2007
Distribution of Canadian Trade* - 2006
U.S., 72.80%
Japan, 2.60%
U.K., 2.45%Other EEC*, 6.25%
Other OECD2, 4.80%11.14%
14
The North American ContextThe North American Context
We are part of a larger North America trading bloc:– The US and Canada are each other’s largest trading partners.– The US is also Mexico’s largest trading partner. – Mexico is the US’s 3rd largest trading partner after Canada and
China. – Mexico is Canada’s 5th largest trading partner. NAFTA : world’s largest economic region (32% of global GDP)Importance of North America is growing: – The Economist estimates that US and Mexico will be the world’s
2nd and 5th largest economies by 2040– 225% growth in 2-way Canada-Mexico trade from 1993 to 2005We all need to use the advantage of North America to compete globally.
We are part of a larger North America trading bloc:– The US and Canada are each other’s largest trading partners.– The US is also Mexico’s largest trading partner. – Mexico is the US’s 3rd largest trading partner after Canada and
China. – Mexico is Canada’s 5th largest trading partner. NAFTA : world’s largest economic region (32% of global GDP)Importance of North America is growing: – The Economist estimates that US and Mexico will be the world’s
2nd and 5th largest economies by 2040– 225% growth in 2-way Canada-Mexico trade from 1993 to 2005We all need to use the advantage of North America to compete globally.
15 15
North America Faces Increasing Global Economic Competition
North America Faces Increasing Global Economic Competition
North America’s share of world exports has been fallingNorth America’s share of world exports has been falling
UNCTAD, 2007
02468
101214161820
NorthAmerica
USA Canada Mexico China India
1980 1990 2000 2005 0%5%
10%15%20%25%
30%35%
NorthAmerica
US Canada Mexico China India
1990 2005
… as has North America’s share of world inward foreign direct investment … as has North America’s share of world inward foreign direct investment
16
Canada and the USA enjoy the largest trading partnership in the world...
Canada and the USA enjoy the largest trading partnership in the world...
Two-way trade in goods and services totaled USD $626 billion in 2006. This represents trade of more than USD $1.2 million dollars a minute!!!Two-way trade in goods and services totaled USD $626 billion in 2006. This represents trade of more than USD $1.2 million dollars a minute!!!
Source: Statistics Canada, March 1, 2007Source: Statistics Canada, March 1, 2007
Canada - U.S. Trade in Goods & Services($CAN Billions)
U.S. to Canada
U.S. to Canada
Canada to U.S.
Canada to U.S.
0
200
400
600
800
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Canada - U.S. Trade in Goods & Services($CAN Billions)
U.S. to Canada
U.S. to Canada
Canada to U.S.
Canada to U.S.
0
200
400
600
800
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
17 17
Our Relationship Depends on an Infrastructure that is Highly Integrated
Our Relationship Depends on an Infrastructure that is Highly Integrated
From this perspective, it’s hard to see the border.
From this perspective, it’s hard to see the border.
Major RoadsPower Grid
Rail
18
Rail links extend beyond the Canada/U.S. Border
Rail links extend beyond the Canada/U.S. Border
19 19
Source: National Energy Board, CanadaSource: National Energy Board, Canada
It also Includes a Partnership in Petroleum and Natural Gas
It also Includes a Partnership in Petroleum and Natural Gas
Major Crude Oil Pipelines
Major Natural Gas Pipelines
20
Platte
St. James
Burnaby
Portland
Salt Lake City
Houston
Anacortes
Canadian & U.S. Crude Oil PipelinesCanadian & U.S. Crude Oil PipelinesEnbridge GatewayCapacity 400 kbpdIn service 2012-14
ExpressMontreal
LimaChicago
Cushing
Trans Mountain
TransCanadaAB-CaliforniaCapacity 400 kbpdIn service 2012AB-USGCCapacity 400-600 kbpdIn service 2012
Guernsey
Hardisty
Edmonton
Kinder MorganTMX Northern LegCapacity 400 kbpdIn service 2012TMX2 ExpansionCapacity 100 kbpdIn service 2011TMX3 ExpansionCapacity 300 kbpdIn service 2011
Enbridge
BP
Enbridge NorthAlberta ClipperCapacity 450+ kbpdIn service mid-2010Southern AccessCapacity 400 kbpdIn service 2009Southern LightsCapacity 185 kbpdIn service 4Q 2008Line 5 ExpansionCapacity 50 kbpdIn service 2008Line 6B ExpansionCapacity 44 kbpdIn service 2009Line 6C New LineCapacity 350 kbpdIn service 2011Line 9 ReversalCapacity 180 kbpdIn service 2009
existing
proposed
possible
Sarnia
TransCanadaKeystoneCapacity 435 kbpdIn service late 2009Cushing ExtensionCapacity 155 kbpdIn service late 2010Heartland ExtensionCapacity 600 kbpdIn service 2009-10
Enbridge SouthNew LineCapacity 450 kbpdIn service 2010New LineCapacity naIn service 2012-14Spearhead Expansion (N/S)Inc. Capacity 65 kbpdIn service 2009North Loop to ChicagoIn service 2009Enbridge New LineCapacity 400 kbpdIn service 2010
BPLight line ex-ChicagoCapacity 180 kbpdIn service 2009
AltexCapacity 250+ kbpdIn service 2011
ExxonMobilMustang ExpansionCapacity 38 kbpdIn service late 2008Pegasus ExpansionCapacity 31 kbpdIn service late 2008Clydesdale New LineCapacity 280+ kbpdIn service 2010
Kinder MorganExpress Option 1Capacity 160 kbpdIn service 2010Express Option 2Capacity 55 kbpdIn service 2010Express BulletCapacity 400+ kbpdIn service 2010Express RoutingPatoka South
WoodRiver
Patoka
Sunoco New LineCapacity 200 kbpdIn service 2012
ExxonMobil
21
US Jobs Related to Trade with CanadaUS Jobs Related to Trade with Canada
Based on modeling changes in import and export flows in the context of a global general equilibrium model of world trade benchmarked to 2001 U.S. production and international trade.
< 30,000
30,000-70,000
70,000-125,000
125,000 - 200,000
> 200,000
36 of the 50 states in the U.S. consider Canada as their most important market for exports.It is estimated that Canada-US trade supports more than 7.1 million jobs in the United States.
36 of the 50 states in the U.S. consider Canada as their most important market for exports.It is estimated that Canada-US trade supports more than 7.1 million jobs in the United States.
22
Texas jobs related to trade with CanadaTexas jobs related to trade with Canada
521,750 Texas jobs are supported by Canada-U.S. trade
Two way trade $22.6 billion in 2006
Canadians made more than 333,000 visits to Texas, spending $221 million
521,750 Texas jobs are supported by Canada-U.S. trade
Two way trade $22.6 billion in 2006
Canadians made more than 333,000 visits to Texas, spending $221 million
23
Canada Has Located More Than 42% of Its FDI in the United States
Canada Has Located More Than 42% of Its FDI in the United States
Canadian-owned businesses in the United States
Geographic Distribution of Outward FDI Stock from Canada, 2006
Geographic Distribution of Outward FDI Stock from Canada, 2006United States
42.7%
United Kingdom11.3%
Barbados7.3% Ireland
4.7% France3.2%Bermuda
3.0%
Others27.7%
Source: Statistics Canada, May 9, 2007
24
Canadian Businesses in TexasCanadian Businesses in Texas
25
Trade is Being Driven By Economic Integration
Trade is Being Driven By Economic Integration
25% of exports to the US - ENERGY25% of our merchandise trade is in automobiles, trucks and parts, which move back and forth across the border as part of one of the world’s largest single integratedindustrial networks50 % is in a wide assortment of materials and products -plastics, machinery, medicines, equipment - which are used as inputs for manufacturers on both sides of the border. 33% of Canada - US trade – finished goods, inputs,components and parts shipped between different branches of the same companies, located on different sides of the border.
25% of exports to the US - ENERGY25% of our merchandise trade is in automobiles, trucks and parts, which move back and forth across the border as part of one of the world’s largest single integratedindustrial networks50 % is in a wide assortment of materials and products -plastics, machinery, medicines, equipment - which are used as inputs for manufacturers on both sides of the border. 33% of Canada - US trade – finished goods, inputs,components and parts shipped between different branches of the same companies, located on different sides of the border.
26
Texas Exports to CanadaTexas Exports to Canada
27
Texas Imports from CanadaTexas Imports from Canada
28 28
But the size and diversity of the relationship hides a constraint
But the size and diversity of the relationship hides a constraint
Source: Conference Board of Canada
Most of our trade flows through only a few border crossings.
29
WHTI – And APHIS, Safe Port Act, Secure Flight, and
Import Safety
Border wait times; thickening
North American supply chains– critical to North American competitiveness
WHTI – And APHIS, Safe Port Act, Secure Flight, and
Import Safety
Border wait times; thickening
North American supply chains– critical to North American competitiveness
Border Security and Supply ChainsBorder Security and Supply Chains
30
Bilateral irritants: only a handful remain– Softwood lumber– Agricultural issues– ITARS– Intellectual Property
NAFTA – SPP– U.S., Canada, Mexico to meet April, New Orleans
Bilateral irritants: only a handful remain– Softwood lumber– Agricultural issues– ITARS– Intellectual Property
NAFTA – SPP– U.S., Canada, Mexico to meet April, New Orleans
Trade Issues:Trade Issues:
31
Canadian Ally in AfghanistanCanadian Ally in Afghanistan
32
Canada / TexasA Business Partnership
Canada / TexasA Business Partnership
11/04/2008 33
CanadaCanada
Proposed FY 2008-09 Consolidated Plan Budget
City Council BriefingApril 16, 2008
2
Purpose of Briefing
Present City Manager’s Proposed FY 2008-09 Consolidated Plan Budget
Present amendments proposed by the Community Development Commission
Review next steps
3
Consolidated Plan Budget Background
Consolidated Plan consists of 5 grants received from U.S. Department of Housing and Urban Development (HUD)
Community Development Block (CDBG)Home Investment Partnerships (HOME)American Dream Down-payment Assistance Initiative (ADDI)Emergency Shelter Grant (ESG)Housing Opportunities for Persons with AIDS (HOPWA)
4
Consolidated Plan Budget Background (cont’d)
$29.5m to be received from HUD for FY 2008-09 Consolidated Plan Budget
$811,052 decrease in FY 2008-09 total grant funding when compared to FY 2007-08
5
Consolidated Plan Process to Date
March 13th - City Manager’s Proposed Consolidated Plan Budget was presented to the Community Development Commission (CDC)
CDC Committees met during March to review and discuss their areas of the proposed budget
April 3rd - CDC discussed amendments and approved the City Manager’s Proposed Budget with their amendments
6
HUD Grant Funds
Community Development Block Grant (CDBG)Purpose - to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities
Annual appropriations include the following funding sources
New HUD entitlementHUD ReallocationsCity’s program incomeReprogramming of unexpended prior years’ funds
Entitlement - $17,679,465; allocation reduced by $625,331
7
HUD Grant Funds
HOME Investment Partnerships (HOME)Purpose - to provide, develop, support, produce, and expand the supply of decent and affordable housing
Annual appropriations for HOME include the following funding sources:
New HUD EntitlementCity Program Income
Entitlement - $7,625,416; allocation reduced by $273,555
8
HUD Grant Funds
American Dream Down-payment Assistance Initiative (ADDI)Purpose - to assist low-income families become first-time homebuyers through down-payment assistance
Annual appropriations for ADDI from HUD entitlement
Entitlement - $72,460; allocation reduced by $106,878
9
HUD Grant Funds
Emergency Shelter Grant (ESG)Purpose - to prevent homelessness and to assist those already homeless
Annual appropriations for ESG from HUD entitlement
Entitlement - $772,437; allocation reduced by $3,288
10
HUD Grant Funds
Housing Opportunities for Persons with AIDS(HOPWA)Purpose - to provide housing and/or supportive services to individuals with AIDS, persons who are HIV positive, and their families
Annual appropriations for HOPWA from HUD entitlement
Entitlement - $3,332,000; allocation increased by $198,800
11
Sources of Funds – from HUD
7,625,4167,898,971HOME (grant)
$17,305,776$17,927,867CDBG (grant)
72,460179,338ADDI (grant)
$29,481,778$30,292,830Sub-Total HUD Grant Funds3,332,0003,134,000HOPWA (grant)
772,437775,725ESG (grant)
373,689376,929CDBG (HUD reallocation)
FY 2008 - 09Proposed
FY 2007- 08 Adopted
Source of Funds
12
Source of Funds – Other Sources
1,314,3461,102,661CDBG Reprogramming (unspecified)
119,2530CDBG Reprogramming (specified)
656,6720CDBG Program Income – One Time
600,000600,000CDBG Program Income – Sub-recipient Retained (SDDC)
300,000400,000HOME Program Income (Housing)
$32,857,049$33,311,765Grand Total All Sources
35,000139,345CDBG Program Income – Intown Housing Developer Repayments
$350,000$776,929CDBG Program Income – Housing Activities
FY 2008 - 09Proposed
FY 2007- 08 Adopted
Source of Funds
13
Proposed Uses of FundsCity Manager’s Recommendation
and
CDC Recommended Amendments
14
848,224848,2240Public Improvements (CDBG)
$32,857,0493,332,000
772,437
72,460
7,925,416
3,040,957
571,936
1,135,435
12,451,612
$2,706,572
FY 2008-09CM Proposed
72,460179,338ADDI Activities
$2,706,572$3,789,697Public Services (CDBG)
$32,857,049$33,311,765Total3,332,0003,134,000HOPWA Activities
772,437775,725ESG Activities
7,925,4168,298,971HOME Activities
3,040,9573,191,636Program Oversight (CDBG)
571,936577,192Fair Housing (CDBG)
1,135,4351,222,300Economic Development (CDBG)
12,451,61212,142,906Housing Activities (CDBG)
FY 2008-09As Amended
By CDC
FY 2007-08AdoptedUse of Funds
Uses of Funds
15
Budget Considerations
Grant allocations reduced
Comply with HUD regulations
Consistent with 5-Year Consolidated Plan
Increased service level needs
Continue to allocate CDBG funds for Public Services at or near the 15% maximum allowed
16
Budget Considerations (cont’d)
Staff Accountability – continue performance evaluation pay increases and employee health benefits cost increases
Comply with City’s timely expenditure policy for CDBG funds
Continue to comply with HUD monitoring and reporting requirements
Cap reductions in CDBG due to reduction in grant allocation and program income
Public Services categoryPlanning and Program Oversight category
17
Budget Considerations (cont’d)
$2,706,57215% of Total = Maximum PS Budget Allowed
364,345FY 07-08 Program Income$17,679,465FY 08-09 CDBG Entitlement
18,043,810Total Current Year Entitlement + Prior Year Program Income
$2,706,572FY 2008-09 Proposed Public Services Budget
(1,083,126)Amount to be Reduced from Public Services FY09 Budget
$3,790,37115% of Total = Maximum PS Budget Allowed25,269,171Total Current Year Entitlement + Prior Year Program Income
6,964,345FY 06-07 Program Income (includes S108 Loan Sales) $18,304,796FY 07-08 CDBG Entitlement $3,789,697
CDBG – Public Services Cap Calculation Comparison
FY 2007-08 Public Services Budget
18
CDBG - Public ServicesHighlights & ChangesCity Manager’s Recommendation
No new programs proposed
Maintain funding level for existing programs that address most urgent needs
Funding recommendations are consistent with target populations identified in 2007 United Way Community Needs Assessment – Key Themes and Trends Indicators and Council Priorities
19
CDBG - Public Services Highlights & Changes (cont’d)City Manager’s Recommendation (cont’d)
Programs recommended for funding are consistent with the most urgent needs identified ($2.7M)
Children ($1.3M)Child CareAfter-School/Summer
Youths ($265k)Substance AbuseDental Health
Seniors($487k)Homeless population($177k)Re-entry Programs ($206k)Community Court ($301k)
20
CDBG - Public Services Highlights & Changes (cont’d)
City Manager’s Recommendation (cont’d)
Program reductions:Eliminated funding for prior years programs ($835k)
Adolescent Health Services ($60k)African-American Museum Youth Enrichment ($50k)Youth Development ($347k)Adult Substance Abuse($50k)City Minority Diabetes ($82k)AIDs Early Intervention and Education ($75k)Teen Violence – Victim Outreach ($35k)Youth Related Social Services ($30k)Dedicated SAFE II Expansion Inspection Support-DPD ($60k)Domestic Violence ($46k)
21
CDBG - Public ServicesHighlights & Changes (cont’d) City Manager’s Recommendation (cont’d)
Reduced funding for FY2007-08 one-time funded programs ($171k)
Fine Arts Education & Summer Camp ($20k)Arts Education Program ($21k)Low Birth Weight ($25k)Social Services and Outreach Program ($34k)Child Care Development Training System ($30k)Recruitment and Job Training Program ($25k)Community Youth & Senior Program (West Oak Cliff) ($16k)
No CDC amendments to the Public Services budget.
22
CDBG - HousingHighlights & ChangesCity Manager’s Recommendation
Continue funding for Major Systems Repair Program (formerly known as Basic and Minor Home Repair Programs)
Increase funding for Minor Plumbing Repair/Replacement
Continue funding for Reconstruction/SHARE Program (formerly known as Replacement Housing/SHARE Program)
23
CDBG - HousingHighlights & Changes (cont’d)
City Manager’s Recommendation (cont’d)
Continue funding new programs added during FY2007-08 by mid-year reprogramming
Housing Services Program – funding for CHDOs to assist homebuyers ($100k)
Neighborhood Enhancement Program – “Toolbox” of neighborhood improvements to compliment NIP in target areas ($180k)
No CDC amendments to the Housing activities budget
24
CDBG- Economic DevelopmentHighlights & Changes City Manager’s Recommendation:
Continue funding for Business Assistance Centers at multiple sites
RFP to be issued for FY2008-09 BAC contract awards
Continue use of revolving loan funds (program income of $600,000) for SDDC’s Business Loan Program
No CDC amendments to the Economic Development budget
25
CDBG - Public ImprovementsHighlights & Changes
City Manager’s Recommendation
Restore funding for citywide neighborhood street improvement petition program and Neighborhood Investment Program target areas ($679k)
Reduced in FY2007-08 budget due to available funding from prior fiscal years
No CDC Amendments to the Public Improvements budget
26
CDBG - Fair Housing & Planning/Program OversightHighlights & ChangesCity Manager’s Recommendation
Fair Housing, Planning, and Program Oversight activities are proposed at 20%
HUD regulations allow 20% of grant
Reductions to various programs recommended in order to comply with HUD’s spending cap regulations ($156k)
No CDC Amendments to the Fair Housing & Planning/Program Oversight budget
27
HOME Grant Highlights & ChangesCity Manager’s Recommendation
Funding for CHDO Development Assistance at 15% minimum (HOME funding requirements)
Funding for CHDO Operating Assistance at 5% maximum of entitlement
Reduction due to HOME regulations ($17k)
Increase funding for Reconstruction/SHARE Program (formerly known as Replacement/SHARE Program) ($70k)
28
HOME Grant Highlights & Changes (cont’d)City Manager’s Recommendation (cont’d)
Continue funding for client assistance in Tenant Based Rental Assistance (TBRA) Program
Continue funding for City administered TBRA for Ex-Offenders Program
No CDC Amendments to HOME budget
29
ADDI Highlights & Changes
City Manager’s Recommendation
Decreased funding for first-time homebuyers down payment assistance due to projected decrease funding grants
Reduction of $106,878 in grant
No CDC Amendments to ADDI budget
30
ESGHighlights & ChangesCity Manager’s Recommendation
Decrease funding in operations and program administration due to projected decrease in funding grant
Reduction of $3,288 in grant
Prior year funds will offset this year’s reduction
Homeless Assistance Center scheduled to open May 2008
Funds originally allocated for Day Resource Center to be used tooffset operation costs
No CDC Amendments to ESG budget
31
HOPWA Highlights & Changes
City Manager’s Recommendation
Funding allocations made in reference to priorities established by the Ryan White Planning Council (RWPC) and with needs identified in RWPC 2007 Comprehensive Needs Assessment
Decreased funding in Tenant Based Rental Assistance to maintain current service level. Program using unspent prior year funds to supplement FY 2008-09 funding
32
HOPWA Highlights & Changes (cont’d)
City Manager’s Recommendation (cont’d)
Increased funding in Emergency Assistance Reduced in FY 2007-08 due to funding from prior fiscal years
Increased funding in Housing Facilities Operations ($160k and Supporting Services ($207k)
No projects recommended in Housing Rehab/Repair category
33
HOPWAHighlights & Changes (cont’d)CDC Amendments
$61,140Total $61,140Housing Facilities Rehab/Repair
Increase:
Decrease:($61,140)Housing Facilities Operation
CDC Rationale:In response to community request, CDC supports available housing for eligible citizens and desires additional funding ($61,140) for needed repairs. CDC anticipates minimal impact to the Housing Facilities operation.
CMO Response: City Manager does not object
34
Next StepsApril 30 – Council amendments due
May 7 – City Council amendments discussion and straw votes
May 14 – Preliminary adoption by Council and call public hearing
May 15 – Begin 30 day public review and comment period
June 11 – Public hearing before City Council
June 25 – Final adoption by Council
August 15 – Submit FY 2008-09 Action Plan to HUD
October 1 – Implement plan
35
Attachment A Detailed Project Listing
36
Intentionally left blank
Memorandum
CITY OF DALLAS
Date: April 11, 2008
To: Honorable Mayor and Members of the City Council
Subject: Newsrack Program Update
Included on the agenda for April 16, 2008 is a briefing on the newsrack programwith a proposed alternative from the Dallas Morning News.
Please contact Theresa O’Donnell at 214-670-4127 should you need additionalintorm~tion.
nzalezCity Manager
c: Mary K. Suhm, City ManagerThomas P. Perkins, Jr., City AttorneyDeborah Watkins, City SecretaryCraig Kinton, City AuditorRyan S. Evans, First Assistant City ManagerDavid 0. Brown, Interim Assistant City ManagerJill A. Jordan, P.E., Assistant City ManagerRamon F. Miguez, P.E., Assistant City ManagerDavid Cook, Chief Financial OfficerJudge Jay Robinson, JudiciaryJeanne Chipperfield, Interim Budget Director, Financial ServicesTheresa O’Donnell, Director of Development Services
“Dallas, the City that works: diverse, vibrant and progressive”
Newsrack Program Update
City Council April 16, 2008
2
Purpose of Update• To present the current status of the newsrack
program and implementation• To review the key components of the current
program/ordinance• To present an alternative plan offered by the
industry stakeholders• To receive feedback on the alternative proposal
and direction on how to proceed
3
Goals of the Program• Key focus areas of Public Safety and Quality of Life are
supplemented by promoting viable and vibrant neighborhoods and improving the City’s physical environment for a positive impact on safety– Reduction in clutter and blight
• Uniformity of design and appearance• Consistency with other public improvement efforts
– Enhance public safety• Ensure adequate access for pedestrians and ADA
compliance• Ensure unobstructed access for emergency and public safety
equipment and personnel
4
Current View of Newsracks in Dallas
Elm and Ross
San Jacinto and Harwood
5
Current View of Newsracks in Dallas
AT&T Plaza at Jackson
Westchester at Katie
6
Background• City Charter gives the City the authority to grant
licenses for the use of public rights-of-way • City has been issuing licenses for newsrack
uses in the public right-of-way for over 50 years • Some publishers have not consistently
maintained updated or accurate information on their newsracks
• Enforcement, prior to passage of current ordinance, has been voluntary compliance
• Current ordinance passed on June 20, 2007
7
Current Program Provisions• Establishes placement criteria for individual racks• Distance requirement between newsrack groupings – 75’
– Maximum group size – 8• Establishes limited placement criteria for multi-box newsracks with
specific locations and number of newsracks determined by a plan prepared by the Director and approved by the City Council
• Establishes process for creating multi-box newsrack zones• Designates the expanded CBD area as the first multi-box newsrack
zone• Establishes design criteria for individual racks• Establishes a lottery process• Establishes costs of program implementation• Provides a phased implementation plan• Provides for proposed fee and costs to the publishers
– See Appendix A for additional details
8
Expanded CBD Map
9
Multi-box Newsrack Selection
10
Multi-box Newsrack Selection
11
Publisher Concerns• Costs of new program
– Increase from $5 to $65 per box per year for individual newsracks
– Increase from $5 to $179 per box per year for multi-box newsrack units (includes annual maintenance costs)
• Amortized over a period of 5 years– Uniform design standard requires an entire fleet of new
individual racks for the publishers
• Setback requirements too strict– Expanded CBD will see attrition for available locations– May cut back on circulation and distribution– Publications of higher frequency (daily, weekly) may lose
business due to the loss of available space and an open lottery system
12
Additional Concerns Expressed• Higher costs will reduce the number of
newsracks which may cut back on projected revenue (license fees)
• May have negative impact on smaller/independent publications
• City’s upfront costs of multi-box newsracks requires interim financing – Range of costs is $877,000 to $1.2 million
13
Dallas Morning News Proposal• Publishers have raised the idea of allowing a third party
contractor to administer the program that they develop and bring to the City for approval
• Dallas Morning News (DMN) worked diligently with the other publishers to develop a plan that:– Meets some of the City’s Public Safety and Quality of Life goals
for the program– Reduces the costs to the publishers
• Through reduced scope of regulation and reduction of requirements
– Reduces the need for additional City staff and associated costs– Eliminates the need for City upfront financing
14
DMN Proposal Details• The DMN has agreed to
– Purchase, own, install and maintain as many multi-box units needed to meet the current demand up to 300 4-unit modules
– Lease available units to the publishers. Bill and collect an annual fee of $60 per year per rack
• Cost of unit amortized over a 7-year period• Includes monthly maintenance costs and annual City license
fee of $5• Publishers may share the $60 cost per unit, if they share a
space with a split door• DMN stipulates this may increase each year, but will be
capped at a reasonable rate
15
DMN Proposal Details
Lottery Process• The DMN in conjunction with City staff will conduct a
lottery– For positioning within multi-box newsracks– For determination of space in multi-unit newsrack, if demand
exceed availability– Publishers with multiple publications that do not receive a spot
for each at a given location can substitute publications up to amaximum number of spots the publisher wins in the lottery
16
DMN Proposal Details• DMN asks that the City agree to
– Reduce the distance between multi-box units from 75 feet to 50 feet
– Contain the multi-box unit district to just the CBD bounded by the freeway loop and Victory Park
– The remainder of the City be regulated and enforced only by placement and location criteria without design specifications –
• Design specifications dictate shape, color, and size of newsrack box– With consent of the City, allow the DMN the option to transfer
ownership and administration of the CBD modular units to a different publisher with the purchase of the units at book value
– City will issue decals for licensed individual newsracks annually and collect annual license fee
– Allow the group of multi-box units to increase to 16 available slots (8x8)
• See illustration on slide 18 and 19
17
New Multi-Unit Zone Boundaries
The CBD Loop and Victory Park
18
Increasing Multi-Box Unit Size The photo on the left depictsa group 24 free standing racks in front of the Dallas Morning News.There are approximately 11 locations in the CBD that have roughly the same amount in a group.
The photo on the right depictsa group of 8x8 units with both daily and split door availability.A group this size easilyaccommodates a grouping similarto the above, but only if theoverall dimensions do not violateany of the 28 setback requirements.
19
Staff Concerns with DMN Proposal
• May have to competitively bid the program• Some, but not all of City’s aesthetic and public safety
goals are satisfied• City license fees must be examined in light of new
reduced regulation– Maintain full cost recovery
• City may need to collect fees and remit payment back to DMN
• DMN must conduct lottery in accordance with City specifications
• DMN will have to submit a plan for the location and number of multi-box newsracks for review and approval by City Council
20
Staff Concerns with DMN Proposal (cont)
• DMN cannot transfer without City consent or agreement
• Reduction of expanded CBD to just CBD proper and Victory Park
• Loss of aesthetic goals outside CBD
21
DMN Plan - Pro’s• Eliminates need for additional expenditure of public
dollars – borrowing the initial investment– Additional staff for program administration
• Allows for a public/private effort to address community issue
• Captures the goals of enhanced public safety and reduced visual clutter in our downtown
• Publishers realize a smaller fee increase
22
DMN Plan - Con’s
• Does not achieve uniformity of design outside CBD
• Less direct control of the program• Remaining concerns need further
discussion with publishers
23
Next Steps
• Receive Council feedback and pursue direction based on suggestions
• Meet with the publishers following City Council meeting to give an update and receive feedback
• Bring the specifics of the proposal to the Quality of Life Committee to finalize recommendations
24
Appendix A• Current Program Provisions
• Individual Newsracks specified model or equivalent
• Current Setback Requirements
• Current Lottery Process
25
Current Program Provisions• Establishes placement criteria for individual
racks• Establishes process for creating multi-box
newsrack zones• Designates the expanded CBD area as the first
multi-box newsrack zone• Establishes design criteria for individual racks• Establishes a lottery process• Estimates costs of program implementation• Provides a phased implementation plan• Provides for proposed fee and costs to the
publishers
26
Multi-Box Newsrack Zone• The expanded CBD is a pre-designated Multi-
box zone– Includes the CBD Loop, Deep Ellum, and a portion of
Uptown including Victory Park• Other multi-box zones can be established in
defined areas where -– a proliferation and clutter of newsracks exist– an established urban or neighborhood character
• Only multi-box newsracks will be permitted in a multi-box zones
• No individual racks will be permitted within the multi-box zone
27
Individual Newsracksspecified model or equivalent
This criteria and regulation will not carry forward under the DMN proposal
28
Current Setback Requirements• Staff worked closely with Public Works,
Transportation, and Public Safety to incorporate distances that promote and maintain public safety and a steady flow of vehicular and pedestrian traffic
• In addition to the 75’ rule between groups of individual racks there are 28 other setback requirements in which must be adhered to by any individual or group of newsracks
29
Current Setback Requirements
3Parking Meter
3Monument
3Mailbox
3LRT Ticketing Equipment
3LRT Shelter
3LRT Informational Sign
3Kiosk
3Fire Protection System Valve
3Fire Hydrant
3Fire Department Inlet Protection
3Drinking Fountain
3Doorway
3Crosswalk
3Art
0Alley
SETBACK (feet)FEATURE
30Visibility Triangle (CBD)
45Visibility Triangle
15Light Rail Centerline Track
7Bus Stop Sign
7Bus Stop Bench
7Bus Shelter
6Bicycle Rack
5From Curb orRoadway if NR facescurbface orpavement edge
3Water Feature
3Trash Receptacle
3Traffic Control Signal Box
3Stop Sign
3Police/Fire Call Box
3Planter
SETBACK (feet)FEATURE
30
Current Lottery Process• Preference will be given based on legally
established grandfathered locations only for the initial lottery– Grandfathered locations consists of all right-of-way
locations provided publisher’s list prior to 6/20/07• Secondary lotteries will be conducted 5 years
after initial lottery to allow new publications or existing publications opportunity to receive prime locations
• Lotteries will be conducted on an as-needed basis to fill vacated spaces
31
Appendix B• Cost Arrangement • City Installed Multi-box Newsrack • Estimated costs for Multi-box Newsracks
in expanded CBD • Annual Maintenance Costs• City Costs• Publisher Costs
32
Cost Arrangement
– City purchases complete multi-box newsrack• Includes multi-box frame and boxes• Includes installation
– Publishers pay• Yearly amortization for multi-box
newsracks• Administrative costs• Maintenance costs
– City administers program
33
City InstalledMulti-box Newsrack
$18.00
$12.00
$9.00
Annual Maintenance
Costs per box
$65.00
$65.00
$65.00
Annual Admin.
Costs per box
$160.00$3,2004 boxes
$123.00$3,7006 boxes
$105.00$4,2008 boxes
*Costs per box/space per year
Installed Costs per Multi-box Newsrack
Multi-box Newsrack (frame & boxes)
* 5 year amortization of multi-box newsracks, 5 years is the average lifetime of a newsrack
34
Estimated costs for Multi-box Newsracks in expanded CBD
• Estimated need for 138 8-box units and 93 4-box units (frame and box)
– 138 units X $4,200 ea. = $579,600– 93 units X $3,200 ea. = $297,600
• Total cost =$877,200*
35
Annual Maintenance Costs
• Services included for annual maintenance cost* monthly inspections* graffiti removal* paint touch-up* bolt tightening and minimal maintenance
• Costs do not include• Major repairs or replacement of damaged equipment• Repairs to coin operated devices
36
City Costs• Estimated Operating Costs
– Implementation of expanded CBD Multi-box Newsrack Zone
• $877,200• Estimated Administrative Costs
– Additional Staff – 4 FTEs• $321,500 (salaries and equipment)
• *Total Estimated Cost• $1,198,700
* Costs for additional multi-box newsrack zones not calculated in this figure
37
Publisher Costs• Multi-box Newsrack program
– Annual cost per box $105 (based on 8 unit)
– Annual maintenance cost per box $ 9 (based on 8 unit)
– Annual administrative cost per box $ 65• Individual Boxes
– Cost per standardized box varies– coin $500.00 (approx.)– free $180.00 (approx.)
– Annual maintenance cost per box $ 0– Annual administrative cost per box $ 65
• *Application fee (reduced from $750) $ 100
*(one time fee per publisher)
38
Appendix C
• Current Demand in the Expanded CBD• Reduction of 75 Foot Rule• Publisher Support
39
Current Demand in the Expanded CBD
• The following statistics are from the database of legally operating/grandfathered locations based the publisher’s lists provided prior to 6/20/07– Locations with 17 - 24 publications: 18– Locations with more than 24 publications: 1
• If the City agrees to add an additional 4 broadsheet unit as depicted in Slide 18, the current legally-operating (grandfathered) demand will be met with the need for 1 lottery, otherwise 19 lotteries will be conducted
40
Reduction of 75 Foot RuleThe diagram below illustrates that for some blockfaces the 75’ rule eliminates the ability to accommodate the current demand.
41
Publisher Support
• The DMN met area publishers to garner support for the alternative plan
• So far, 20 of the 24 operating publications have officially signed on in support of the DMN’s proposal– Other publishers have communicated with
staff that they would support the program