Memphis City Council Summary Sheet Instructions

Please provide a brief summary of the item, in bullet form, not to exceed one page:

1. Describe item (Resolution, Ordinance, etc.) A resolution approving the fiscal year 2020 Budget for the Downtown Memphis Commission and affirming the Central Business Improvement District assessment rate of $0.65 per $100 of assessed value (no change). No use of City taxes are requested.

2. Identify initiating party (e.g., Public Works; at request of City Council,

etc.) Per ordinance

3. State whether this is a change to an existing ordinance or resolution, if applicable. N/A

4. State whether this requires a new contract, or amends an existing contract,

if applicable. N/A

5. State whether this requires an expenditure of funds/requires a budget amendment. N/A

RESOLUTION

WHEREAS, the City Council authorized the Downtown Memphis Commission to manage the Central Business Improvement District in 1997, and to determine annually the costs and expenses necessary to be funded by special assessment; and

WHEREAS, the Downtown Memphis Commission submitted their FY2020 Budget in the amount of $4,274,605 for approval by the City Council; and

WHEREAS, full Council approval is also needed for the Downtown Memphis Commission budget; and

WHEREAS, the Council affirms that the assessment rate approved by Council in 1997, of $0.65 per $100 of assessed value, was used to determine the revenues listed below.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Memphis that the FY2020 Budget for the Downtown Memphis Commission be and is hereby approved.

DOWNTOWN MEMPHIS COMMISSION BUDGET

FY2020Safety & Hospitality $ 1,597,840

Beautification: Clean, Green & Main St Mall $ 1,300,451Events, Activation, Sponsorship & Community Engagement $ 692,134

Development, Diversity & Community Planning $ 684,180$ 4,274,605

Memorandum TO: Memphis City Council FROM: Jennifer K Oswalt, President DATE: May 6, 2019 RE: Downtown Memphis Commission FY 2020 Operating Budget

1. The Downtown Memphis Commission (DMC) is the organization charged with:

• Advancing Memphis and Shelby County by making Downtown Memphis a better

place to work, live, invest and visit

• Attracting more people to Memphis and Shelby County with a vibrant Downtown

that is densely developed, authentic, mixed-use, walkable, clean, safe and fun

• Increasing property values Downtown, thereby increasing the City’s and County’s

revenue

2. Thank you for your consideration of approval of our budget. As you review, please note

that no City funds, property tax or otherwise, are being requested. Our staff includes 43

FTEs who cover the above activities as well as administer all of our economic development

programs.

3. We are pleased to present the DMC’s proposed FY 2020 Operating Budget. Highlights

include:

• Increased funding of the Hospitality Hub to partner with City and County on a solution to

address street-level homelessness to include Work Local funding to employ people

experiencing homelessness to supplement city solid waste services.

• Supporting local entrepreneurs and small businesses to fill vacant properties through our

retail project

• Continued provision for the Blue Suede Brigade Hospitality & Safety officers, our

oversight of the Main Street Mall, cleanliness and beautification of Downtown as well as

event recruitment through sponsorship

4. We respectfully request the City Council’s approval of the FY 2020 operating budget so that

we can continue to make Downtown better for the benefit of the whole City and County. The

population and property values of Downtown continue to grow. Thank you very much for

your consideration and your continued partnership.

FY2020

Budget

FY2019

Estimated

Actuals Variance %Income

Assessment and Interest 3,813,000 3,793,424 19,576 1% Operations Income 15,000 15,372 (372) -2% Transfers In from Related Entities 446,605 323,316 123,289 38%Total Income 4,274,605 4,132,112 142,493 3%

Expenses     Wages & Salaries 1,934,336 1,863,340 70,996 4% Employee Benefits 517,732 458,099 59,633 13% Other Personnel Expenses 25,650 12,328 13,322 108% Dues & Subscriptions 16,600 23,633 (7,033) -30% Insurance & Office Expenses 309,527 305,147 4,380 1% Conferences & Travel 17,000 17,777 (777) -4% Business Development 188,800 34,450 154,350 448% Increase efforts with Hospitality Hub/Work Local/Fund Police Shift Professional Fees 219,960 226,153 (6,193) -3% Audit, IT, Blight Legal, Design Assistance Event Production/Sponsorship 290,000 285,886 4,114 1% Planning & Development 90,000 74,375 15,625 21% Improvements 230,000 408,294 (178,294) -44% Shift from Public Realm Projects to Hub/Police efforts in 2020 Depreciation Expense 435,000 422,630 12,370 3%Total Expenses 4,274,605 4,132,112 142,493 3%

Transfers Out - - -

Net Income - - -

Downtown Memphis Commission (DMC)

Budget Overview

Downtown Memphis Commission (DMC)

Budget Overview

FY2020

Budget

FY2019

Projected

Actuals

FY2019

Adopted

Budget

FY2018

Actuals

FY2017

Actuals

FY20 Budget to

FY19 Actual

Variance %Income

Assessment and Interest 3,813,000 3,793,424 3,328,000 3,731,162 3,106,749 19,576 1% Operations Income 15,000 15,372 22,000 26,500 22,771 (372) -2% Transfers In from DMC Related Entities 446,605 323,316 646,631 14,311 65,000 123,289 38% No specific overhead charged to DPA, CCRFC, CCDCTotal Income 4,274,605 4,132,112 3,996,631 3,771,973 3,194,520 142,493 3% In past years, only transferred to extent needed

Expenses     Wages & Salaries 1,934,336 1,863,340 1,831,937 1,726,695 1,245,864 70,996 4% Increase in 2018 was Blue Suede Brigade Expansion, now at 32 FTE Employee Benefits 517,732 458,099 481,484 389,338 286,519 59,633 13% Increase in 2018 was Blue Suede Brigade Expansion, now at 32 FTE Other Personnel Expenses 25,650 12,328 25,650 31,744 164,908 13,322 108% Increase in 2018 was Blue Suede Brigade Expansion, now at 32 FTE Dues & Subscriptions 16,600 23,633 16,600 7,657 15,174 (7,033) -30% Insurance & Office Expenses 309,527 305,147 293,100 301,939 225,708 4,380 1% Conferences & Travel 17,000 17,777 17,000 18,960 14,201 (777) -4% Business Development 188,800 34,450 20,800 21,482 21,446 154,350 448% Increase efforts with Hospitality Hub/Work Local/Fund Police Shift Professional Fees 219,960 226,153 233,560 239,111 234,468 (6,193) -3% Audit, IT, Blight Legal, Design Assistance Event Production/Sponsorship 290,000 285,886 268,000 269,314 276,862 4,114 1% Planning & Development 90,000 74,375 71,000 147,022 36,905 15,625 21% Improvements 230,000 408,294 256,000 211,715 118,862 (178,294) -44% Shift from Public Realm Projects to Hub/Police efforts in 2020 Depreciation Expense 435,000 422,630 440,000 406,998 553,603 12,370 3%Total Expenses 4,274,605 4,132,112 3,996,631 3,771,974 3,194,520 142,493 3%

Net Income - - - - - -