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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”