SSA #49 South Shore & Special Service Areas (SSAs) Andrew J. Mooney Commissioner
What is an SSA? Special real estate taxing district, not an agency The City as the taxing body contracts with entities to administer SSA programs Funds additional services beyond the City s general services in a defined district Tax % rate applied to EAV generates levy is DIFFERENT than the tax % increase on a tax bill from the SSA tax Enabled through state statute and city ordinance Called BIDs (Business Improvement Districts) in other cities; BIDs used worldwide
Achievements A good ROI Be smarter about sanitation services Help police reduce crime Help ex-offender re-entry Lease vacancies Support manufacturers Offer free wifi in SSAs Bring new visitors to Chicago Focus community advocacy & leadership Master planning Create accountability with taxing privilege Create more desirable neighborhoods Leverage City resources, both financial and human
Current & New SSAs 47 active SSAs 40 Service Provider Agencies 350+ Commissioners Oldest SSA created in 1977 70% increase in last 10 years 2013 Budgets = $27 million
CITY OF CHICAGO COOK COUNTY City Council (legislative) SSA Commission (advisory) Assessor Treasurer Dept. of Law OBM HED Other City Depts. City Comptroller Service Provider Agreement SSA Bank Acct Service Provider Agency (Management/Admin) Subcontractors
Typical Authorized Services maintenance and beautification activities new construction (e.g. minor streetscape improvements) coordinated marketing and promotional activities parking and transit programs area strategic planning business retention/recruitment initiatives building rehab activities (façade) security services other technical assistance activities to promote community and economic development. Work plans assembled annually from this list.
SSA Services Gallery
PUBLIC WAY MAINTENANCE
AESTHETICS Streetscape Maintenance & Landscaping
Advertising & Promotion
Façade Improvements & Pre-Development Costs
Parking /Transit/Accessibility SSA #10 Back of the Yards SSA #2 Belmont-Central SSA #5 Commercial Ave.
Safety & Security Types of security: Foot Patrol Surveillance Cameras Store Security Rebates Cell Phones for CPD Coordination w/caps
Tenant Retention & Attraction
SSA Outreach & Communications
SSA Fund Mechanism: Common Terms 1) Tax Rate Cap (citywide average: 0.50%) 2) Annual Tax Rate (% may vary annually) 3) EAV (Equalized Assessed Value set by County) 4) Levy (citywide range: $60k - $1.3 million; ave. $250k) 5) Carry Over (unspent and/or previous years taxes) Budget = Levy + Carry Over Example: $300,000 = $270,000 = $30,000 Levy = Tax Rate x EAV ample: $270,000 = 0.45% x $60 million (tax cap is 0.50%)
Legislation
Key Legislation for SSAs Illinois State Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act Governmental Ethics Ordinance
Governance
Legislation - State Statute Real Estate to be taxed Manner to be taxed (tax rate) Municipality authorized to govern SSA Application Process Public Hearing Process Expansion, Disconnection & Refunds Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act
Legislation City Ordinances Establishment Ordinance Boundaries Term Tax Rate Cap Commission: Qualifications, Appointment, Powers Authorizes HED to enter into Mgmt. Agreement Levy Ordinance Annual levy and associated tax rate Budget (levy + carry-over) Management Agreement Ordinance Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act
Legislation Service Provider Agreement Empowers agency to deliver services/spend funds Annual services and budget Commission approves expenditures and subcontracts Performance standards Conflicts of Interest Contract Default HED Commissioner issues notice to improve If no improvement, Provider subject to sanctions & termination Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act
Legislation Open Meetings Act Public Notice Beginning each year, prepare and give notice of meeting schedule Agenda posted at Agency office and mtg. location 48 hours before mtg. 10-day notice in newspaper required for meeting changes Meeting Minutes Meeting defined as gathering of majority of quorum of Commissioners Include meeting date, time and place Record Commissioners as present or absent Summary of discussion on all matters proposed, deliberated, or decided, and record of any votes taken Approved minutes open to public within 7 days No SSA business can be done via email Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act
Legislation Freedom of Information Act Public Records reports, maps, letters, etc. received by the Commission info in SSA related accounts, contracts, etc. Exempt: invasions of personal privacy, personnel records, RFP prep, and actual bids/proposals until awarded Service Provider records requested/archived by City FOIA Requests Submitted to HED or Commission, NOT the Agency 7 days to reply If info is readily available, provider should cooperate w/o a FOIA request From the Chicago Tribune Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act
Governance - SSA Commissions 47 SSA Commissions Seats range from 6 to 16; ave. 9 Typically meet quarterly Executive seats typically Chair, Secretary, Treasurer No more than 1/3 of Commissioners should also serve as Agency Board Members due to need for recusal no overlap is recommended
Governance - SSA Commissions Establishment Ordinance creates Commissions Extension of, not separate from, the City Name of Commissions Number of seats and term lengths for each commission Appointment process Chairperson term lengths Establishment Ordinance lists Commission powers To Recommend Annually: Services Budget Service Provider
Governance - SSA Commissions Public Bodies- subject to IL Open Meetings Act Recruitment Strategies Define eligibility guidelines with Aldermen Outreach to eligible candidates (mailing, websites, media) Nominating Committee vetting Some SSA Ordinances require a group to submit candidate list Appointment Process Application vetting, including indebtedness checks Completed City Board of Ethics Stmt. of Financial Interest Aldermanic support letters Mayor s Office vetting, appointment City Council confirmation
Governance - SSA Commissions Powers & Authorities Recommend annual services, budget, service provider Authorized to transfer funds between budget line items not affecting maximum budget; notify HED All Agency subcontracts require documented Commission approval Determine reasonableness of all Agency expenses Indemnification Agency defends and holds the City (Commissioners) harmless Agency or subcontractor cannot charge Commissioners with liability Commissioners indemnified within their authorized parameters Conflict of Interest Commissioners or their relatives cannot have financial interest in Agency contract or subcontracts
Governance - SSA Commission Bylaws Establishment Ordinance authorizes creating bylaws for procedural operation SSA Ordinances supercede SSA bylaws Separate/distinct from Agency bylaws Negotiable items for each SSA: Executive seats Mtg frequency beyond Open Mtgs Act (semi-annually) Attendance requirements Voting Committees Amending bylaws
Management
Management Service Providers 40 Service Providers (Agencies) 30 Chambers or Business Associations - 3 Development Corporations 2 Industrial Organizations 5 Human or Civic Service Organizations All are non-profits Staffing scenarios to manage the SSA: Executive Director only or part of their time Shared Agency/SSA staff person FT SSA Program Manager Multiple staff support Outsourced administration
Management Service Providers Offer skill and talents to SSA Start-Up & Mgmt. Serve as HED s General Contractor for SSAs Goal: services provided commensurate with compensation Determine staff/resource capacity to deliver SSA work plan Maintain time/cost records devoted to SSA programs Provide quality services in timely manner Prepare, at minimum, semi-annual reports Find synergy between SSA goals and other City and community goals Assist with Commissioner appointments
Vetting Overview Commission Dept. of Finance (DOF) Debt checks Dept. of Consumer Services (DOCS) Child Support Indebtedness Checks City & County Boards of Ethics Stmts of Financial Interest (mailed to commissioner after appointment) Aldermanic & Mayor s Office Application Review Service Provider DOF & DOCS checks on President, Treasurer, Ex. Dir. EDS for Agency Organization list SSA subcontractors Proof of Agency Organization in Good Standing with State
2014 SSA Creation Timeline Winter 2012 June 2013 Oct-Dec 2013 By Dec 2013 Jan 2014 Fall 2014
SSA Accountability State statute and city ordinances Annual audits, assessments, reporting Strong internal controls for Service Provider Funds reinvested: NOT use it or lose it Open Commission Meetings Performance measures Aldermanic and City Council approval Renewable terms No portability Responsive to district changes
Making the SSA a reality Local champions Vision & Mission for the corridors Coordinated SSA Development Plan Financial support (reimbursable SSA cost)
Questions to Consider What shared problems do property owners/tenants have? Is there a willingness to address these problems? If so, when? Why? What area comes together as an SSA district? Why? What is our community leadership to make these changes happen? Aldermanic support? What program management capacity do we have to make an SSA happen and be successful? What financial management capacity do we have to manage public tax revenues?
SSA #49 South Shore & Thank You Nora Curry, Financial Planning Analyst 312-744-1867 nora.curry@cityofchicago.org Delegate Agencies Unit, Bureau of Economic Development, HED City of Chicago Department of Housing and Economic Development Andrew J. Mooney, Commissioner