Downtown Vision Inc.’s board of directors approved a 2014-15 budget that significantly decreases the anticipated revenue from its own fundraising efforts but makes that up with a significant bump in anticipated tax revenue from the city.
DVI is funded by an additional 1.1-mill ad valorem assessment on commercial property within the Downtown Improvement District created by City Council in 2000.
Included in this year’s DVI’s budget of $1.2 million is $311,660 from the city, based on 1.1 mills of ad valorem tax that would be paid on city-owned property if the city paid property taxes. The amount increases to $464,000 next year, with the assumption that city increases its contribution to DVI based on the property value of the Duval County Courthouse.
Terry Lorince, DVI executive director, said the city makes its contribution based on essential services the organization provides in the district.
“The reality is the city doesn’t pick up trash or clean the sidewalks,” she said.
The city Solid Waste Department regularly empties the trash containers Downtown, but litter and graffiti removal, maintenance of the tree beds and flower baskets and sidewalk cleaning is performed by the Downtown Ambassadors, contracted to a third party by DVI.
The budget adopted Wednesday shows a slight decrease in the additional assessment contributed by private property owners, from $686,000 in 2013-14 to $684,405 due to decreased Downtown ad valorem values.
Council each year approves the contribution to DVI as part of the general fund budget.
Board member Bill Prescott said the increased contribution from the city is not guaranteed, but the projected revenue increase is based on the 1.1 mill assessment of the courthouse property value.
“It’s just math,” said board member Steve Crosby.
Asked if there was a “Plan B” in the event the city does not fully fund its projected contribution, Prescott said there are only two “big line items” in DVI’s budget, referring to $462,500 projected for staff salaries and benefits and $437,139 for the ambassador program.
DVI began a sponsorship fundraising effort last year and created a director of strategic partnerships position who was expected to raise enough money to pay her salary and benefits.
Urban planner Valerie Feinberg was hired in July 2013 with the expectation that $71,400 would be raised through sponsorships in the 2013-14 budget year.
The budget presented Wednesday showed a projected sponsorship figure of $15,000 for this year and $20,000 in the 2014-15 proposed budget.
“We’re off in terms of sponsorships. We probably were too aggressive in budgeting,” Prescott said.
Feinberg said projects like the re-landscaping of Hemming Plaza conducted by DVI in partnership with Greenscape of Jacksonville and the Late Bloomers Garden Club bring in sponsorship funds and increase the organization’s network of contacts in the business community.
The new plants were purchased with a portion of a $35,000 grant from Wells Fargo Foundation, with additional support from Interline Brands, Lowe’s and volunteers who cleaned out the landscape beds in the plaza and then later installed the new plants.
Feinberg said that of the $103,000 total project cost, DVI leveraged $80,000 in volunteer labor and in-kind contributions such as gardening tools and supplies.
“In-kind gifts are as good as money. We would have had to purchase or pay for that,” said Debbie Buckland, board chair.
Prescott said the next step is for DVI to form a partnership with the Downtown Marketing Collaborative, a promotional organization created by the JAX Chamber.
The collaborative raised $350,000 from partners including the Jacksonville Jaguars, JEA, Jacksonville Transportation Authority, the Jacksonville Civic Council, the NAIOP commercial real estate organization and Visit Jacksonville, among others.
Prescott said when Feinberg starting calling on possible sponsors, it became apparent the collaborative and DVI were going after the same prospects.
In one case, he said, “We were going to the same company on different days.”
Prescott said the collaborative’s board will consider approving at its meeting in May a sponsorship marketing partnership with DVI.
“The DMC brings people Downtown; DVI makes sure they have a good experience when they are here,” he said. “It seems to make sense for DMC and DVI to combine.”
Buckland also supported the plan.
“This brings all the community horsepower the DMC has enjoyed combined with DVI’s ability to make it work. It also eliminates duplication,” she said.
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