by Max Marbut
Staff Writer
The board of directors of Downtown Vision Inc. met Wednesday and for the second consecutive year approved a budget in which expenditures exceed revenue.
The budget approved for fiscal year 2011-12 projects a deficit of $200,000, compared to the fiscal 2010-11 shortfall of $95,000.
In both years, transferred Special Project Reserve funds balanced the budget.
DVI adopted a 2010-11 budget totaling $1,220,104. The proposed 2011-2012 budget submitted to the board Wednesday was $1,103,655.
Debbie Buckland, SunTrust Bank executive vice president and board treasurer, likened the action to transferring money from a savings account to a checking account to cover expenses in a household budget.
DVI Executive Director Terry Lorince said the shortfalls have been caused by declining property values.
DVI is primarily funded by an additional property tax levy approved by stakeholders in the Business Improvement District.
She said the properties involved were assessed at $950,000 in 2009, $840,000 in 2009-10 and the value fell to $750,000 for the 2011-12 budget year.
“Close to a third of our budget has been eliminated in the last three years by what’s going on in the real estate market,” said Lorince.
Lorince said she’s not sure if the stakeholders will continue to fund DVI and the City’s annual contribution may also be in jeopardy.
The City contributes based on the value of publicly owned property in the district.
Last year the City appropriated $229,747 for DVI. The projected City contribution in the new budget is $311,660, an increase of $81,913 to cover the cost of two additional cleaning workers to augment the efforts of the Downtown Ambassadors.
Jacksonville Economic Development Commission Executive Director Ron Barton advised the board that the City anticipates it will be at least four years before real estate values improve significantly.
Lorince said that doesn’t bode well for continued contributions from the City. “I think we’re going to be on the front burner for budget cuts,” she said.
Lorince also detailed some of DVI’s line-item expenses. She said each First Wednesday Art Walk costs $3,500 and the organization spends $11,000 a year to replace flowers in the hanging baskets and mulch tree beds.
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