BACKGROUND: The City Council has approved through prior action certain operational funding to various entities within the City of Decatur.
This letter will serve in providing Council Members with the current status of operational funding to the various entities during fiscal year 2017.
Community Investment Corporation of Decatur (“CICD”) – original agreement dated January 7, 1997, for a one year period, with annual evergreens unless terminated by either party with 90 day notice period. This agreement remains in effect. Per the agreement, CICD is responsible for the “administration of the Decatur Industry and Technology Center (“DITC”)”, and CICD is responsible for the “administration of current and future HOME funds for the purpose of selection of the participating Community Housing Development Organization (“CHDO”) and for providing technical assistance to the CHDO’s”. Per the agreement, the City would provide annual funding in the amount of $84,000. The current funding level provided by the City to the CICD is $70,000. The amount was reduced from the original agreement amount sometime under the administration of City Manager Garman.
Decatur Area Convention and Visitors Bureau (“CVB”) – original agreement dated August 19, 1981, for an original term ending April 30, 1982. Subsequent one year agreements (with gaps) were entered into between the parties through the period ending April 30, 2000, thus being the last agreement of record on file with either party. Per the agreement, the “City will provide operational funding to the CVB in exchange for CVB efforts in the promotion of conventions and tourism in the Decatur, Illinois area and to acquaint and inform the public as to these objectives by providing information and other civic and educational features as will foster, encourage and stimulate these purposes”. City funding levels have increased over the period from an original annual funding of $118,000 to the present 2016 annual funding level of $240,000. Further, in recent years, the City has provided annual funding of $20,000 for City sponsorship of the Decatur/Forsyth LPGA Semetra Golf Classic and $10,000 for City sponsorship of the Farm Progress Show exhibitor dinner. Both of these sponsorships transact through the CVB. In 2017, the City will provide funding to the CVB in the amount of $240,000, fund an additional $20,000 for the golf event sponsorship, and $10,000 for sponsorship of the Farm progress Show exhibitor dinner, for a total of $270,000.
Decatur/Macon County Senior Center – original agreement dated September 21, 1998 when the City transferred responsibility for the City former Office on Aging to the Decatur/Macon County Senior Center. Agreement stipulated that the Senior Center shall act as an independent contractor whereas the City has no rights or obligations in the management of Senior Center operations. The term of the original agreement expired August 31, 1999, with two automatic one year renewals to August 31, 2001. This is the last agreement on file with the City of Decatur. Over the years since 1998 the City has provided a variety of funding support to the Senior Center, including annual operational subsidy payments, circa 2003 purchase of the Senior Center property located at 355 N. Water Street for $250,000, circa 2003 parking lot construction payment of $37,224 at the current 22nd Street location, and circa 2006 payment of $20,000 for general maintenance and upkeep of the 22nd Street facility. Per the 1998 agreement, the City would provide an annual funding payment in the amount of $71,000. The current annual funding provided by the City of Decatur is $67,000. The amount was reduced from the original agreement amount sometime under the administration of City Manager Garman. In 2017, the City will restore the funding level to $71,000.
Decatur Economic Development Corporation (“EDC”) – City provides an annual funding payment to the EDC in the amount of $60,000.
Civic Center Authority (“Authority”) – original agreement dated December 20, 1976, as amended on March 14, 1977, and as amended November 24, 1980. Agreements defined the Authority acquisition of a site for construction of a Civic Center to include an arena, municipal offices, theater, meeting rooms, mall and parking at a project cost of $11.244 million funded by State of Illinois contribution in the amount of $8.433 million and City of Decatur contribution in the amount of $2.811 million; and the agreements defined the duties and obligations of the Authority and the City in the operation of the Civic Center. Agreement stipulates that the City is entitled to possession of office space in the facility for a period ending June 30, 2079, rent free, and in consideration the City shall be responsible to pay the cost of maintenance of space, including all utilities, janitorial services and non-structural repairs within the municipal office space; City shall maintain an operating reserve of $100,000 and if said operating reserve fund is exhausted, the City shall pay any deficit in operating expense incurred by the Authority in operation of the Civic Center; Authority is not obligated to repay the City for any funds contributed to the Authority, and the Authority is obligated to pass any operating surplus beyond the $100,000 operating fund reserve to the City to aid in the retirement of any debt service cost of the City investment of $2.811 million that constructed the Civic Center. In 1998 and 1999, the City entered into agreement(s) with the Authority to participate in the funding of certain HVAC and facility repair and maintenance costs of $640,000, whereby the agreements stipulated the City would fund the projects and the Authority would repay the City for Authority share of the cost of $377,000 over a period of time defined in the agreements. The Authority was only able to repay the City $73,000 of the $377,000 agreement obligation to the City in the period from 1998 and 1999. In December 2013, the City forgave the remaining outstanding Authority obligation to the City in the amount of $304,000, with consideration of City equity in the Civic Center enterprise, whereby, the City shall be reimbursed upon dissolution of the Authority if and only if the Authority, upon dissolution, has sufficient assets and equity to reimburse the City. At present, the City makes an annual operational subsidy payment to the Civic Center at the beginning of the fiscal year to finance the Authority operation. In 2017, the annual subsidy payment is $409,867, an increase from the 2016 annual subsidy payment of $406,614.
Sister City Program – The City has funded the Sister City Program in the amount of $7,500 in recent years. The 2017 funding level is $7,500.
CONO Program – The City has funded the program in the amount of $9,000 in recent years. The 2017 funding level is $5,000.
Summary – All of aforementioned funding levels have been contemplated in the 2017 Budget approved by the City Council with Council Resolution 2016-140 passed by Council November 21, 2016.