8-22 DWOA Budget Narrative.pdf

Downtown West Orange Alliance 2022 Proposed Budget Below please find the Downtown West Orange Alliance Special Improvement District's Budget for 2022. A budget hearing will be held during the regularly scheduled council meeting on January 4, 2022. Please email Downtown@WestOrange.org for more information or questions. Thank You. REVENUE Projected 2022 SID Assessments 133,000.00$ Township Contribution Cash 65,809.00$ Township Contribution In-Kind 28,000.00$ Funds Carried Forward 17,000.00$ Mayors 5K Run 5,000.00$ Fundraising (Promotional Events) 37,091.00$ Interest Income 100.00$ Total Revenue 286,000.00$ Township Contribution In-Kind (28,000.00)$ Total Revenue without In-Kind 258,000.00$ EXPENSES Projected 2022 Total Office Operations 102,000.00$ Total In Kind 28,000.00$ Economic Development 3,000.00$ Insurance & Professional Services 5,000.00$ Marketing & Promotions 77,250.00$ Organization 6,600.00$ Visual Improvement 64,150.00$ Total Expenses 286,000.00$ In-Kind (28,000.00)$ Total Expenses 258,000.00$

1 Downtown West Orange Alliance 2022 Budget Narrative Revenue This year’s budget totals $286,000 and provides for an efficient and effective year full of planning, marketing, promotion, and organization strategy. The total cash allocation of this year’s budget is $258,000.00. The revenue contained in this budget is derived from a combination of Special Improvement Assessments, Township of West Orange Contributions, Fundraising efforts and Surplus from 2021. We were able to resume a few of the events we had planned for this past year but unfortunately, we were unable to hold the West Orange Street Fair. In addition, we had a much smaller 5K run than in past years. As a result, fundraising was down. We are hopeful that in 2022 will bring back all events and have more in person opportunities to meet up downtown. The assessment portion of this budget totals $133,000.001 utilizing a 3- tier system as sanctioned by ordinance2. The tiers are based on the type and location of the commercial properties within the downtown corridor. There is a total of 180 properties3 that provide commercial space for over 300 businesses. These businesses consist of Restaurants, Retail Stores, Personal and Professional Service companies. This year’s income is broken out into the following categories: Township contribution of Cash and In-Kind4 Services, Fundraising efforts generated from the Mayors 5K Run (5K), Street Fair (SF) and funds carried from the previous year5. Assessment Income $ 133,000.00 Township Contribution Cash $ 65,809.00 Township Contribution In-Kind $ 28,000.00 Prior Year Surplus $ 17,000.00 Fundraising 5K Run $ 5,000.00 Fundraising Efforts Events $ 37,091.00 Interest Income $ 100.00 TOTAL $ 286,000.00 In - Kind (-28,000.00) Total Cash Budget $ 258,000.00 1 Estimated assessment amount as of December 2021 2 Ordinance # 1534-98 3 Block & Lots adjustments 4 In-kind = $28,000 for office space and supplies 5 Surplus = Estimated funds remaining at the end of 2021

2 Expenses 1. Total Administration & Office Operations Expenses relating to the Township’s contribution include rent, utilities, telephone, postage, printing, supplies and financial contribution towards the overall budget. The Special Improvement District (SID) office is in Township Hall and is part of the in-kind contribution. Cash Contribution $65,809.00 In-Kind office expenses $28,000.00 Total Twp Contribution $93,809.00 Total Administration & Office Operations $ 130,000.00. The administrative and office operation line item includes $28,000 of In-Kind expenses received from the Township. The other expenses relating to Administration and Office Operations include Executive Director salary, payroll fees and taxes, office equipment and supplies. We continue to look for an additional administration staffer as the environment allows. We have continued to utilize the software program; Member 365 (M365) which is a sophisticated membership management tool. The streamlining benefit of M365 cannot be overemphasized and has provided a better organizational tool for managing the database of business and property owners. Administrative Expense Executive Director $ 60,000.00 Administrative Assistant (estimated) $ 25,000.00 Payroll Fees $ 1,000.00 Employer Payroll Taxes $ 8,300.00 Sub-Total Admin Expense $ 94,300.00 Office Expenses Directors Cell Phone $ 600.00 Annual Report fees $ 100.00 Office Equipment & Software $ 1,500.00 Office Software $ 2,500.00 Printing (Letterhead & Brochures) $ 250.00 Supplies & Board Mtg Exp $ 2,750.00 Sub-Total Office Expenses $ 7,700.00 Review Total Administrative $ 94,300.00 Total Office Expense $ 7,700.00 In-Kind Support $ 28,000.00 Total Office $ 130,000.00

3 2. Economic Revitalization (ER) $3,000.00 Monies budgeted for ER will continue to provide for business retention and recruitment. The ER team will continue to take a more personal approach to meeting with our stakeholders. The team has identified key property owners and locations within the SID Corridor and will concentrate efforts on creating more retail ready store fronts and properties. The ER Team will continue to create an environment for recruiting and retaining business within the downtown corridor. 3. Professional Services & Insurance $5,000.00 The Downtown WO Alliance will distribute funds for Professional Services that include The Directors & Officers Insurance, Worker’s Compensation Insurance, Accounting Services for total budgeted amount of $5,000.00. D&O Insurance $ 1,500.00 Worker’s Compensation $ 500.00 Accounting $ 3,000.00 Total $ 5,000.00 4. Marketing & Promotions $77,250.00 We will continue to manage several promotional events and fundraisers that have become extremely popular over the years. These include but are not limited to West Orange Street Fair, Downtown Thursday events, and the annual Holiday Open House. The remaining monies in this category will support The Mayors 5K and other dedicated events with the goal of bringing people into the downtown corridor. Below please find a breakdown of these expenses. As face-to-face interaction has been limited we continue to utilize Facebook, Instagram & other technology resources to promote the downtown corridor. Tourism Grant Match $ 4,062.50 Marketing Contractor $ 32,400.00 Joseph Fagan $ 18,000.00 Mobile Application $ 3,000.00 Website Branding Design & M365 $ 3,000.00 Street Fair, Downtown Thursdays & others $ 16,787.50 Total Marketing & Promotions $ 77,250.00

4 5. Organization $6,600.00 The Organization category provides for the basic structure of the Alliance and allows for the many committees to work together. This line item permits the DWOA to promote our programs as well as the creation for sponsorship opportunities we need for fundraising. It is important for the Alliance to have positive relationships with local organizations and groups such as The Chamber of Commerce, Friends of Edison, Friends of the Public Library, Public Relations Commission, the Rotary Club and many others. It is a goal of the Alliance to attend meetings and continue to be a working partner with other organizations. In addition, the Alliance will participate in all training and resources the National Main Street organization & downtownNJ have to offer. Community Events- OSPAC, WOCC $ 100.00 Dues & Subscriptions $ 1,000.00 Main St. NJ -National Conference $ 5,000.00 Trade Shows/Seminars $ 500.00 Total Organization $ 6,600.00 6. Visual Improvement $63,150.00 We have dedicated much of resources to the design committee over the years. We have made significant improvements to signs, awnings, and store fronts. Ron Raymond has assembled a talented team of individuals that continue to collaborate with our stakeholders to improve the image of the downtown corridor. This line item will fund more way finding signs, the holiday decorations, and the popular façade grant reimbursement program. The DWOA continues to support maintenance and clean-up of the downtown corridor. The addition of our part time litter control person has worked out very well and we will continue with the extra clean up help. Landscaping and beautification of the planters continue to be a priority for the downtown alliance. Specific support for this category is as follows. Banners $ 1,500.00 Design Improvements $ 3,650.00 Capital Expense & Signage $ 5,000.00 Façade Grant Program $ 20,000.00 Holiday Decorations $ 13,000.00 Landscaping/Streetscape $ 6,000.00 Maintenance & Supplies $ 15,000.00 TOTAL $64,150.00 In summary The Downtown Alliance board is committed to promoting and supporting the businesses and property owners along the Main Street Corridor. We will remain steadfast in evaluating every program

5 we support and every dollar we spend to assure there is a financial benefit to our business and property owners as well as for the community where we live and work. Allocation Summary Revenue Assessment Income $ 133,000.00 Township Contribution - Cash $ 65,809.00 Township Contribution – In Kind $ 28,000.00 Prior Year Surplus $ 17,000.00 Fundraising Effort Mayors 5K Run $ 5,000.00 Fundraising Promotional Events $ 37,091.00 Interest Income $ 100.00 TOTAL Revenue $ 258,000.00 EXPENSES 1. Admin & Office Operations $ 130,000.00 2. Economic Development $ 3,000.00 3. Ins. & Professional Services $ 5,000.00 4. Marketing & Promotion $ 77,250.00 5. Organization $ 6,600.00 6. Visual Improvement $ 64,150.00 Total Expenses $ 286,000.00 In-Kind office Operations ($ 28,000.00) TOTAL Cash Budget $ 258,000.00 In Summary, this year’s total proposed cash budget is $258,000.00. I respectfully request that you vote YES on this year’s budget and fully support the work of the DWOA. Thank you for your attention to this matter.