Proposed JFK IBID Annual Budget
The Draft District Plan for the proposed JFK IBID projects an annual budget of $500,000 to support the supplemental services, improvements and advocacy for the IBID district. In the coming months, significant outreach and public hearings will take place and inform this Draft Plan for the district. Further refinement and possible modifications are expected once the full range of feedback is evaluated by the Planning Committee prior to finalizing the IBID Plan. The future JFK IBID Board of Directors would adjust services and programs annually as part of the budgeting process to meet the changing needs of the area.
The Greater JFK IBID budget is about average for an outer-borough NYC BID; however, its focus as an “Industrial” and “Air Cargo-Related” BID distinguishes it from the broad scope of existing NYC BID.s Matching this district’s program of services and improvements to what district members consider their current and future needs is essential.
Although not directly comparable, given the industrial nature of the off-airport district, the activities of existing BIDs with an annual budget range of $250,000-$500,000 do provide some insights and framework for understanding what BIDs do. They perform: Sanitation Services; Marketing Services; Security Services, Advocacy & Administration.
Any contemplation of a budget increase must be approved by the IBID Board of Directors, the NYCSBS and formally voted on at the City Council.
Proposed JFK IBID Assessment Formula
The JFK IBID Planning Committee, under the constraints of the BID Law, proposes an assessment formula that generates sufficient revenue to provide the services desired by the BID area community. Note: Residential properties within the proposed JFK IBID area are NOT subject to the IBID assessment formula and are assigned a symbolic $1.00 per year for the entire residential property.
The JFK IBID assessment formula reflects several factors:
- BID Property Classifications: Range from Commercial/Industrial Buildings to Tax Exempt properties
- BID Property Classification Rates: Commercial/Industrial Buildings represent the 100% base rate, other BID Classes assigned a lesser rate to ensure fairness.
- A “blended” assessment, one that incorporates the assessed value and the square footage of a property. A “blended” assessment is a fair method in evaluating property as it takes into account a property’s current use, its size, and its financial performance.