JULY 9, 2009 ISSUE
Mason Negotiates Possible Compromise with DBDA
DBDA Continues Operations on Reserve Funds
Boone Mayor Pro Tem Lynne MasonAlthough the Town of Boone has not renewed a contract with the Downtown Boone Development Association (DBDA) to be the administer of Municipal Service District tax dollars—the nonprofit association’s main source of funding—the DBDA continues to operate on reserve funds while negotiating a possible compromise with the town, said executive director Tuesdae Rice.
The Municipal Service District (MSD) is located in the downtown area, and the town collects taxes from MSD property owners. The DBDA was established in the 1990s as a nonprofit to contract with the town to put MSD funds to use in promoting the economic development of the MSD and to participate in the Main Street Program, a project of the N.C. Department of Commerce that provides assistance to small towns to promote downtown revitalization.
During a June 9 budget workshop, the town council voted unanimously to restrict expenditures of the Downtown Municipal Service District (MSD) tax revenues to a ratio of 15 percent administrative expenses and 85 percent non-administrative expenses—a move that would have made it very challenging to continue DBDA operations, Rice has said.
At a June 16 meeting, council members expressed concerns about the DBDA’s compliance with its contract with the town and with its own bylaws, but the DBDA has disputed several of these concerns.
But after meeting with Mast General Store owner John Cooper, a founder of the DBDA and past board member, on June 29, Boone Mayor Pro Tem and council member Lynne Mason drafted a statement of recommendations for the DBDA in order for the organization to continue as the designated administrator of MSD funds.
While emphasizing that she is speaking only for herself and not the entire council and that the council has not yet made a decision on who will administer the MSD tax or Main Street Program, Mason wrote, “There is an understanding with Town Council members that they will look favorably on the DBDA continuing to provide services to the MSD and the Main Street Program without regard to a specific formula on how funds should be spent if the DBDA agrees to the following:”
Mason goes on to list 13 recommendations for the DBDA, including: review and update bylaws to ensure consistency with the DBDA’s purpose; hold annual membership meetings; adhere to bylaws, especially with respect to membership, board appointments, meeting notifications, meetings and voting; operate as a nonprofit agency including knowing the board’s responsibilities; comply with N.C. General Statutes §160A-536 in spending MSD tax funds; comply with reporting requirements for all programs and funding sources; work with Main Street Program consultants and develop measurable goals related to the program; market and share successes with downtown and broader community; work toward development of sustainable base of support; build partnerships with merchants, businesses, major stakeholders, institutions and local government and discontinue negative talk; develop goals and plans on how money will be spent; adopt sound financial policies; and provide a semi-annual report to the town that reflects progress on goals.
In addition, Mason suggested that a new town contract with the DBDA will need to be developed with the understanding that it will be reviewed in six months, with renewal contingent on the DBDA’s progress on Mason’s stated recommendations. She also said the DBDA Board of Directors needs to reevaluate the number of positions needed for the Main Street Program, develop clear job descriptions and conduct an annual performance review on the director.
Although the town council voted unanimously to restrict MSD funding to 85 percent non-administrative expenses and 15 percent administrative, Mason’s statement reflects a willingness to back off of the specific formula the council established in June. Mason said that the Main Street Program makes it difficult to separate budget components into administrative and non-administrative because a lot of Main Street Program activities are program-related.
“I want to see results,” Mason said. “As long as we get to a point where we can see results, that’s the important thing.”
“In general, council had concerns about management practices,” Mason also said. “Anyone using public funds right now needs to be accountable. I work in the nonprofit world, and I know how important that accountability is.”
Mason said she decided to take action toward a compromise because of Cooper’s emphasis on the DBDA’s work with the Main Street Program and its desire to continue making progress.
“What I heard loud and clear from John Cooper was that the DBDA wants to be in a position to continue doing this,” Mason said. “If they can address accountability [issues], I’m willing to look at their continuing with the program.”
Mason said she is currently working with town staff on the procedures for presenting her recommendations to the whole council. She also said it would be up to the council to decide whether to solicit other proposals for use of MSD taxes.
About Mason’s recommendation’s, Cooper said, “I think they’re all very doable and positive steps in the right direction.”
“DBDA’s goals are the same goals that Boone has for downtown,” Cooper added. “I’m very interested in helping that move forward and will work with them any way I can.”
Last week, Cooper presented Mason’s statement to the DBDA board, and the board voted to move forward with her recommendations.
“We’re looking at ways to move forward,” Rice said. “I’m happy that there’s an opportunity that we can work together with the town. I think that many of these points the DBDA is already doing, but I always believe there is opportunity for improvement.”
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