HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
Camden Presentation (as of 15 May 2009)
1. A Financing Model for the Camden Special Services District Milano Community Development Finance Lab Team: Kate Maher Jennifer Trepinski Sabrina Wilensky
14. New Jersey’s SID-Friendly Law “ Municipalities should be given the broadest possible discretion in establishing by local ordinance the self-help programs most consistent with their local needs, goals and objectives.”
18. Basic Formula to Determine Assessment Step 1: Find Price per Square Foot or Per Dollar of Assessed Value
19. Basic Formula to Determine Assessment Step 2: Use Price per SF or dollar of assessed value to find individual SID Assessment
20. Example 1: Using Square Feet to Determine Individual Assessment Step One: CSSD Budget÷ Total SF of District=Price Per SF $500,000÷9,892,824 =$.05 Step Two: Price per SF× Individual Property SF=Annual Assessment $0.05×1,215,812= $61,449 Square CSSD Projected Budget Total SF in District Price per Square Foot Individual Property Square Footage Annual Assessment $500,000 9,892,824 $0.05 1,215,812 $61,449
21. Example 2: Using Assessed Value Step One: CSSD Budget÷ District AV=Price per Dollar of AV $500,000÷$502,332,699= $0.0010 Step Two: Price per Dollar of AV ×Individual AV=Annual Assessment $0.0010×$88,243,900= $87,834 SID Budget District AV Assessment per Dollar of Assessed Value Individual Property AV (example) Annual Assessment Price per SF $500,000 $502,332,699 $0.0010 $88,243,900 $87,834 $0.07
22. National Average: Price Per Square Foot Square Feet Annual Price per SF Annual Assessment 1,215,812 $0.10 $121,581 1,215,812 $0.15 $182,372
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25. Map of Downtown Denver Benefit Zones 2009 Prices per Assessable Square Foot Zone 1 $0.440528 Zone 2 $0.339815 Zone 3 $0.284783 Zone 4 $0.255277 Zone 5 $0.206843 Zone 6 $0.357562 Zone 7 $0.323589 Zone 8 $0.288534 Zone 9 $0.242145 Zone 10 $0.206014 Zone 11 $0.170270 Zone 12 $0.169273
39. Benefits Received Scoring Process Footprint (per parcel) Property Class (per parcel) Tax Assessment (per parcel) Convert to point value (using quartiles) Sum points Add bonus pts (if any) Convert to point value (using quartiles) Convert to point value (using quartiles) Total Pts. per Tax Paying Entity DETERMINE CONTRIBUTION TIERS (5 LAYERS)
42. Baseline Formula Process 2a. Determine TOTAL ASSESSED VALUE (AV) per tier 1. Establish a BUDGET GOAL 2b. Determine TOTAL SF per tier 3. Calculate Price per SF per Tier 4. Apply Price per SF to Individual Entities
43. Results BUDGET GOAL: $750,000 Price per SF Total SF Assessment per Tier Tier A $0.08 $407,157 Tier B $0.08 $331,653 Tier C $0.01 $6,621 Tier D $0.03 $4,294 Tier E $0.03 $276 TOTAL: $750,000
Need last bullet or just talk about it?Talk about the impetus of the Waterfront development for the original SID <number>
Do I need to go into detail about the budget, contractor, how the Clean & Safe program operates?<number>
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Thank you, Kate.I will now explain how our team designed and tested the proposed financing model for the CSSD.[NEXT SLIDE]<number>
[CLICK]After examining existing assessment models used by BIDs throughout the United States[CLICK]and analyzing the current environment of the proposed District, [CLICK]our team came to the conclusion that, due to Camden’s special needs, a new, unique model would need to be created in order to properly finance the district.[CLICK]The new financing model would calculate assessments in a standardized manner. Assessments would be treated as contributions to the District rather than direct payments for service.[NEXT SLIDE]<number>
Within the current boundaries of the CSSD there are approximately 480 tax parcels. These parcels are owned by approximately 244 different entities. Each parcel (and therefore each entity) should be considered a potential member of the District.By basing potential membership on location rather than use the District can increase its potential membership base, thus increasing its potential revenue.[NEXT SLIDE]<number>
Of the 244 entities represented in the potential membership base, only 4.7% are current contributors to the CSSD. (Several of the District’s current contributors are located outside of the proposed District’s boundaries.)Current contributors represent some of the largest entities in Camden, both in terms of economic value added to the city and physical presence.[NEXT SLIDE]34
Several key assumptions were involved in designing the model.[CLICK]Agreement to participate in receiving the District’s direct benefits is voluntary; however, once the agreement has been solidified, an entity will be required to pay on a regular basis.[CLICK]Any financing model must account for the direct and indirect benefits of the Clean & Safe program.[CLICK]Non-payment within the district will be fairly high, based on past attempts and current attitudes towards the formation of a SID.[CLICK]The bulk of the financial burden should rest on the larger institutions within the District, as they are the ones with the most at stake.[NEXT SLIDE]<number>
In addition to these assumptions, several additional criteria were included in the model design. These criteria are based on aspects of the baseline formula applied by most BIDs in their assessment calculations.These criteria are:[CLICK]Equity(To ensure that properties are assessed proportional to their physical and intangible impact on the District)[CLICK]Transparency(Increase public buy-in by using publicly available data and methodologies)[CLICK]and Scalability(Model can later be applied to other corridors within Camden.)[NEXT SLIDE]<number>
[CLICK]After examining existing assessment models used by BIDs throughout the United States[CLICK]and analyzing the current environment of the proposed District, [CLICK]our team came to the conclusion that, due to Camden’s special needs, a new, unique model would need to be created in order to properly finance the district.[CLICK]The new financing model would calculate assessments in a standardized manner. Assessments would be treated as contributions to the District rather than direct payments for service.[NEXT SLIDE]<number>
The measurement units used in calculating assessments are based on three variables commonly found in BID assessment formulas:[CLICK]Physical presence in the district, measured by a property’s footprint (in sf)[CLICK]The social and economic use of the land, measured by property class[CLICK}And the assessed value of the property.These measurement units correlate with publicly available tax assessment data from the New Jersey Association of County Tax Boards.[NEXT SLIDE]<number>
The assessment formula is comprised of six components.[CLICK]Using the public data, values for the three variables are determined for all eligible parcels within the district.[CLICK]The values for these variables are statistically divided into quartiles. Higher values are in the 4th quartile, and lower values are in the 1st quartile. Median values are equally divided between the 2nd and 3rd quartiles.Quartiles are determined separately for each variable. Within each variable, quartiles are assigned a specific point value of either 0, 1, 2, or 3, with 3 being the highest score. Points correlate to a property’s overall value within and contribution to the District.[CLICK]The points from each of the three variables are added together.[CLICK]At this time any bonus points can be added to a property’s score. In our assessment we did not include any bonus points. Suggestions for possible uses of bonus points include as a blight penalty (additional points) or specific public use discount (subtraction of points.) [CLICK]Points are summed again, first to include any bonus points, and then to determine a total score per tax paying entity.[CLICK]Once all the entities within the district have been scored, they are ranked by score from highest to lowest. This ranking is then used to create a “contribution pyramid” for assessments.[NEXT SLIDE]<number>
Upon ordering the 244 unique entities within the CSSD based on their scores it became clear that there was a wide point spread within the district. 14% of the entities (“Group 1”) had a score between 11-175 points. The remainder of the district (86%; “Group 2”) had less than 10 points. In order to reflect this diversity each group was further subdivided into tiers so that entities of similar scores (and therefore similar impact within the CSSD) would be evaluated against one another. [CLICK]Group 2, which represents the majority of the properties within the district, has contribution levels ranging from $100 to $5000. These levels are the minimum required contribution for participation.The top three tiers—while representing a small share of properties within the district—has the greatest financial stake in the success of the CSSD and therefore shoulders the majority of the financial burden.[CLICK][CLICK][CLICK][NEXT SLIDE]<number>
[CLICK]After examining existing assessment models used by BIDs throughout the United States[CLICK]and analyzing the current environment of the proposed District, [CLICK]our team came to the conclusion that, due to Camden’s special needs, a new, unique model would need to be created in order to properly finance the district.[CLICK]The new financing model would calculate assessments in a standardized manner. Assessments would be treated as contributions to the District rather than direct payments for service.[NEXT SLIDE]<number>
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