2011 State of the City of Delray Beach

State of the City of Delray Beach

by David T. Harden, City Manager

Presented at the Annual Citizen's Roundtable on January 25, 2011

"Good evening and thanks for coming.  Briefly I will review the vision for Delray Beach’s future, give a summary report on progress made in 2010 as well as some plans for 2011, and outline the continuing financial challenge we face in 2012.

Some years ago residents and the City Commission developed a vision for our future which has been repeatedly affirmed and continues to focus the efforts of City government.   Delray Beach will be a “Charming Village by the Sea” with a World Class Beach, a Vibrant Downtown, a Diverse Local Economy, and a Community of Quality Neighborhoods and Schools.  Recreational and Cultural Opportunities Abound.  People Embrace Cultural Diversity. The City government provides Exceptional City Services.

Last year, our City Commission set goals for 2015 and targets for 2010-11 with increased emphasis on quality services and neighborhoods.  Priorities change annually but our goals remain the same.  In priority order our goals are; Top Quality Services, an Expanded Downtown, an Expanded and Diversified Local Economy, Quality Neighborhoods, Community Unity and Quality Educational Opportunities.

City staff contacts create the first impression residents have of City government.  Those who provide information, collect payments, create service schedules, fight fires and crime and even give traffic tickets are the collective face of the City.  I am proud that the 2010 Citizens Survey rated the quality of services we deliver as excellent or good by 81% of survey participants, which is above the national average.  This compares to 69% in 2007.

Despite a wage freeze and cuts in pension benefits, our employees continue to provide extraordinary service. A resident complimented Utility Service Worker Chris Wilson for coming out on a Saturday morning and working tirelessly for several hours to unclog the sewer lateral beneath the right-of-way.  “It was chilly, it was raining, it was unpleasant work, but he kept at it until the line was sufficiently clear to let us use the toilet”.  Several of our police officers were complimented recently for solving long standing crime problems in their assigned neighborhood.  We have reduced our training budget by 35% since 2007, but must not cut it more if we are to adequately train our staff for this kind of service.     

We are challenged to provide tools our staff needs to continue such service despite shrinking financial resources. The City Commission has been careful to budget adequate funding for maintenance of City facilities.  That is important for staff morale and to avoid building a deferred maintenance deficit for the future. Technology investments are focused on improving efficiency and saving costs. New Public Safety software will stop redundant data entry and, coupled with GPS units in vehicles, enable closest unit response to emergencies, getting us on scene faster. 

Virtualization is saving the cost of separate servers in our IT system.  Hybrid vehicles and high efficiency lighting are saving energy costs.  Continued expansion of our reclaimed water system will save potable water and avoid the need for expensive expansion of our water treatment plant. These and other investments to maintain and improve our tools and facilities must be a priority if we are to provide superior service in the future.

The City’s next goal is an Expanded Downtown: from A1A to I-95.  In the center of this area is Old School Square Park.  Phase I was completed last year. Already it is becoming the community focal point envisioned with its creation.  Increasingly incorporated into event venues, this well used park  is a welcome green respite in our busy downtown.  It will continue to improve as other features are added.

The assigned Clean and Safe staff work hard to keep downtown clean and to make visitors and business people feel safe. City staff continues to work with the DMC to improve signage, banners, lighting and overall cleanliness.  Police officers on walking beats work closely with business owners to solve problems.  Police volunteers also assist with patrols in the downtown.  The City frequently receives compliments on how well and quickly we clean the area after events.  We are pleased that 93% of respondents to our survey felt safe during daytime, but need to work on the night time hours.   The perception of safety is especially important for expanding business west of Swinton Avenue.  To help attract pedestrians the CRA has built a new public plaza at Atlantic and SW 5th Avenue.  Our Public Arts Board is also working on ideas to make the area in front of the Tennis Center more attractive for walkers. 

Our downtown has been described as vibrant, lively, exciting, authentic, creative, family-oriented and unique.  The New York Times recently said Delray Beach was an idyllic beach town; creative, stylish, yet attitude free. These are the qualities we want to enhance as we expand downtown west to I-95 and north and south of Atlantic.  Spady Museum is expanding and more new businesses are coming onto West 5th Avenue.  Despite the slow economy, new businesses are also slowly coming to Pineapple Grove.  South of Atlantic on SE 2nd Avenue, completion of Worthing Place is strengthening that part of the City.  This year we will be rebuilding Worthing Park to add more interest and strength.

The greatest challenge has long been redevelopment of West Atlantic Avenue.  The CRA has now assembled larger parcels of land and we hope that this will attract an exciting development proposal.

Downtown is a vital part of our local economy, but the Commission emphasizes the need to expand and diversify our economic base. The New York Times stated Delray was “poised to become a national destination,” but we want to reach out globally.  The International Tennis Championships, with TV coverage around the world, is one way we do that. They received the 2010 Providencia Award from the Convention and Visitors Bureau for promotion of the area.  The DMC continues to create programs to market Delray as a destination nationally and internationally, working with the Convention and Visitors Bureau, the Cultural Council and the Sports Commission. They promote special events like Art & Jazz on the Avenue, July Fourth, the 100 foot Christmas tree and First Night which bring tens of thousands of people to Delray.  A new organization, Destination Delray, has sought City assistance to aggressively market Delray to tourists.  The DDA creates programs to increase retail sales, especially holiday promotions, and they generate valuable in-kind media coverage.

The economic slowdown and credit crunch are a huge obstacle to attracting Class A office space.  But we must position ourselves to take advantage of the recovery when it comes. The CRA developed a fine business incentive package which the Commission may consider applying citywide.  We adjusted parking requirements and floor area calculations to be more attractive for offices. We also joined the Business Development Board and are working closely with them to market Delray Beach as a business location. 

The City and the CRA jointly fund a full time economic development staff person, Francisco Perez-Azua. Francisco can seek out and assist new businesses coming into the City and existing businesses seeking to expand, both of which bring new jobs.  He is also working with the Chamber of Commerce Economic Development Committee, and the City will help fund their campaign to make businesses nationwide aware of the location opportunities available in Delray Beach.

Plans for transit oriented redevelopment of the County complex on Congress are temporarily shelved.  We will work with the County to make this a reality when funding is available.  As all these efforts begin to bear fruit they will bring job opportunities.

Infrastructure maintenance supports economic development.  Businesses will not develop in a community which looks rundown and ill kept.  Things like street resurfacing, sidewalk repair and sewer line cleaning and sealing are not high profile projects, but our Commission knows they are vital for quality community life.  In addition beautification of MLK Drive is currently underway, and this year we will improve SW 12th Avenue/Auburn Avenue from Atlantic to SW 10th Street.  Also the Atlantic Avenue median will be re-landscaped from I-95 to Swinton.

Helping maintain thriving neighborhoods is a key goal of the City, one which requires a high level of citizen engagement.  Without engagement City staff cannot make a neighborhood safe, clean or well maintained.  Our Community Improvement Department works closely with numerous neighborhoods, hosting regular meetings with community representatives. Our Neighborhood Resource Center also assists.  Programs like Paint Up Delray and Curb Appeal grants also support neighborhoods.

Working with the CRA, the Community Land Trust and private developers, we are making more workforce housing available.  Along SW 14th Avenue between 1st and 2nd Streets, streets, alleys and drainage have been improved and new workforce housing is being built.  The Auburn Group is rebuilding part of Auburn Trace to offer a variety of housing choices for workforce housing.

The Police Department undertook new outreach efforts with the communities it serves.  The Department reinstituted Problem Oriented Policing in which a police officer is assigned to a specific neighborhood to work with them on a wide range of issues.  In participating neighborhoods crime has decreased 40%.

Overall quality of community life is the single best indicator of success in providing the natural ambience, services and amenities that make an attractive community.  Our 2010 Citizen Survey found that 94% rated Delray Beach as an excellent or good place to live.  And 83% rated overall appearance as excellent or good.  In addition, 71% said the variety of available housing options was excellent or good.

Foreclosed properties have been a huge problem for many cities.  We work closely with financial institutions to keep such properties maintained.  We received a $1.9 million grant from the Neighborhood Stabilization Program which we successfully used to buy foreclosed properties, do repairs and sell them to lower income households.

Both within and between neighborhoods we work to foster Community Unity.  As I have said before, Community is not something we can achieve and devote no further attention to. Community is about relationships between people which requires continual nurture and practice.

As a community we must work together to solve our problems.  City staff and Commissioners do not have all the solutions.  Our Mayor and Commissioners frequently meet with groups of citizens on various issues.  All our Commissioners are available to citizens by e-mail, telephone and appointment. Our Citizen’s and Senior’s Police Academies, with a new classes in February, and Residents Academy, with a new class in March, provide information, resources and tools for residents to be knowledgeable community members and effective neighborhood leaders. 

Community Pot Luck Dinners, the Community Soccer Tournament and the Southwest Neighborhoods Multicultural Festival bring together neighborhoods and cultures normally having no contact, to share ideas and build neighborhood unity.  Events like Roots, Asian Fest and Cinco de Mayo recognize and highlight the cultures comprising our community. 

Community and relationship building require good communication. We continue to make more information about the City available on our website, on our Emergency Radio at 1620 AM, through media coverage, and through News for Neighborhoods in utility bills.  Commission meetings are streamed over the Internet, where they are archived and broadcast on 1620.  Hometown Connection, our quarterly on-line newsletter, provides more in depth communication with active residents.  You can also ask questions, or file a complaint under “Citizen Service Requests” on our website.

Several years ago we launched Study Circles to break down racial barriers and build appreciation for cultural uniqueness.  These small groups of residents from various cultures and backgrounds meet to discuss race and diversity issues.  One group, Zion Study Circle, has become a Study Circle alumni group and continues to meet because they want to learn more about each other.  It is not just about race.  It involves culture and cultural interaction , politics, religion, work, social scenes and even food.  Eating together evokes brilliant conversation about their differences and their commonalities.  I urge you to contact Mrs. Butler in Community Improvement and join the next round of Study Circles which will start late this Spring.  All these efforts contribute to the strong sense of community and the openness and acceptance people find in Delray Beach.

A key support to economic development and quality neighborhoods is quality schools. Know this, the City has for over 20 years worked with the School District to improve our schools.  We achieved a long time City goal last year with the opening of the new Plumosa Elementary School of the Arts.  We will keep working with the School District to have the middle school grades added to this campus in the future.

We are proud that Atlantic High School’s graduation rate improved from 60.5% in 2006 to over 90% in 2010.  A major factor in the improvement has been the vocational academies in which  the City has played a key role.  Working with Dr. Weigel, we created the Criminal Justice Career Academy and a Fire Academy.  We also work in close partnership with the Construction Academy and they are starting to build their second house in the City.  These and other academies prepare students for both City and private sector jobs.

The career academies and I.B., Montessori and gifted programs are all vitally important to quality education in Delray Beach. Special programs at Banyan Creek, Spady and Morikami remain very successful. So we will continue to do all we can, working with the School District, the Education Foundation and others to ensure these programs are continued.  We strive to involve and support all of our schools, public, private and charter to meet the needs of all Delray Beach students.

Another goal achieved this past year was completing the expansion of Village Academy through the twelfth grade.  This goal has taken years to accomplish, but this unique school will play a critical role in strengthening the southwest part of the City.

Our greatest challenge remains minority student achievement.  With financial support from the Children’s Services Council we provide tutoring with our out of school program, both after school and during the summer, to improve this area. We also provide financial support to other organizations working on this issue such as the Boys and Girls Club and the Achievement Centers for Children and Families.

With the change in grading criteria, several of our schools became “C” rated this year.  We still continue doing what we can to improve student progress and the grade our schools receive.  We can continue to be proud that Atlantic High School remains one of the top 100 high schools in the United States because of its IB program.     

Funding is necessary to maintain the City while moving toward our long term goals and annual targets. This is money to be raised through taxes or fees.  Our main source is the property tax, although it dropped from 57% of revenue in 2007 to less than 50% in 2011.  Other sources include: Other Taxes (Gas Tax, CST and Utility Tax); Licenses, Permits and Franchises; Charges for Services; Intergovernmental; and Administrative and In Lieu charges.  Since 2007 the City has cut property taxes by $12.6 million or about 22%.  However, the state’s tax system is so convoluted that there are wild differences in how this cut affected individual property owners.  Sales tax (Intergovernmental Revenue) is down by 27% or $2.1 million.  The only category to increase, Charges for Services, went up 50% as the City sought to recover more costs from service users.  All other revenues have been relatively flat since 2007.  Looking to 2012, the Property Appraiser’s Office has said to expect further reduction in our property tax roll of about 5%.  I expect other revenue sources will again be flat or up slightly.  If we do not increase the property tax rate, that will require spending cuts of about $2.3 million below the 2011 budget.

Why not increase other sources and keep the same property tax rate?  Unfortunately, that is not possible.  The rates for Other Taxes are capped or fixed in state law.  Franchise fees are set in the franchise.  Business taxes can only be increased 5% every other year.  Building permit revenue can only be used to fund building and development code administration costs.  Intergovernmental is over 90% state sales tax.  Administrative and In Lieu charges are determined by formula.  Even increases in Charges for Services are restricted since about 40% of the revenue is from sources where increases are limited to the Consumer Price index.

General Fund budgeted expenses for 2011 are $93.4 million. Earlier I showed a pie chart breaking down this budget by function.  Let’s now break it down by expense type.  Wages are 42% and benefits 19%, making total personnel costs 61% of the budget.  Operating expenses are 19% and Capital Outlay only 0.5%.  Debt Service is 5.5%, 6.9% is transferred to the CRA and 6.5% goes for Grants and other Transfers.  If we need to cut $5 million that’s about 5% of our budget, so why not just cut 5% across the board?  First, there are things we cannot cut, including the transfer to the CRA, Debt Service and pension contributions.  These three items total $19.6 million, leaving us $73.8 million.  Then we remove $2.8 million more for building code enforcement since these funds cannot be used for any other purpose, leaving $71 million to cut from.  Second, across the board cuts are easy, but ignore that fact that some budgets are leaner than others, and some services more important than others.  Looked at another way, taking out Debt Service and the CRA leaves $81.8 million of which $57.1 million is wages and benefits. The Police and Fire Departments account for 69% of all wages and 76% of benefits.  Thus it is not possible to make large cuts without cutting wages or benefits, and large cuts cannot be made without cutting some from Fire and Police.
     
I have only given an overview of last year’s accomplishments.  So, be sure to read the Annual Report edition of Hometown Connection, available here this evening for more details.

We continue working to create the future envisioned for Delray Beach. As we look forward to fiscal 2012, we expect to face a further decrease in property tax revenues.  The previous three fiscal years have been difficult, but I believe that 2012 will again be challenging.   

As we look toward April when we start work on the fiscal 2012 budget, we need your help to decide where we should focus our energy and limited resources.

So I will give the meeting back to Mayor McDuffie for instructions on moving to the roundtable discussion portion of our meeting."