CanadaCanadaPresentation to Mayor Leppert and

Dallas City Council by the

Consul General of Canada16 April 2008

2

CNN’s Canada ??CNN’s Canada ??

3

4

Comparing CanadaComparing Canada

PopulationTexas – 23 millionOntario – 12 million (Greater Toronto – 6 million)

U.S. – 305 million–California – 36 million

Canada – 33 million

GDPU.S. – $13 trillionCanadian - $1.3 trillion

PopulationTexas – 23 millionOntario – 12 million (Greater Toronto – 6 million)

U.S. – 305 million–California – 36 million

Canada – 33 million

GDPU.S. – $13 trillionCanadian - $1.3 trillion

5

Democracy with DifferencesDemocracy with Differences

Constitutional Monarchy

Parliamentary System

Provincial responsibility – for resources and health care

Officially Bilingual

Multicultural

First Nations

Constitutional Monarchy

Parliamentary System

Provincial responsibility – for resources and health care

Officially Bilingual

Multicultural

First Nations

6

7

Comparison of Total Government Financial Balances1Comparison of Total Government Financial Balances1

Per cent of GDPPer cent of GDP

1 The OECD uses the term “financial balance” to mean “budgetary balance”.

200720072006 actual2006 actual 20082008

Best fiscal situation in the G7Best fiscal situation in the G7

-5

-4

-3

-2

-1

0

1

2

G7average

Germany Italy France UnitedKingdom

UnitedStates

Japan Canada

8

The Evolution of Federal and Provincial-Territorial Budgetary BalancesThe Evolution of Federal and Provincial-Territorial Budgetary Balances

Both levels of government are in a sound fiscal position

Both levels of government are in a sound fiscal position

-10

-5

0

5

10

15

20

25

1999-00 2001-02 2003-04 2005-06 2007-08

Total Provincial-Territorial Federal Government

$ billions

-10

-5

0

5

10

15

20

25

1999-00 2001-02 2003-04 2005-06 2007-08

Total Provincial-Territorial Federal Government

$ billions

9

Canada-U.S. Exchange RateCanada-U.S. Exchange Rate

The value of the Canadian dollar has risen and has been volatile

The value of the Canadian dollar has risen and has been volatile

US$/C$US$/C$MonthlyMonthly

0.60

0.65

0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

2002 2003 2004 2005 2006 2007

0.92

0.94

0.96

0.98

1.00

1.02

1.04

1.06

1.08

1.10

Sep Oct Nov Dec Jan

Daily

10

Employment and the Unemployment RateEmployment and the Unemployment Rate

Best job market in a generationBest job market in a generation

ThousandsThousands Per centPer cent

00

200200

400400

600600

800800

10001000

12001200

14001400

Jan 2003Jan 2003 Jul 2003Jul 2003 Jan 2004Jan 2004 Jul 2004Jul 2004 Jan 2005Jan 2005 Jul 2005Jul 2005 Jan 2006Jan 2006 Jul 2006Jul 2006 Jan 2007Jan 2007 Jul 2007Jul 20075.25.2

5.65.6

6.06.0

6.46.4

6.86.8

7.27.2

7.67.6

8.08.0

Cumulative Change in Employment (left scale)Cumulative Change in Employment (left scale)

Unemployment Rate (right scale)Unemployment Rate (right scale)

Employment rate at record high

111 Agriculture, fishing and hunting.

Canadian economy is undergoingmajor structural shifts

Canadian economy is undergoingmajor structural shifts

Real GDP Growth by SectorSince December 2005

Manufacturing Real GDP Growth by Industry Since December 2005

-15 -10 -5 0 5 10 15

per cent

Mining, oil andgas

Utilities

Real estate,rental and leasing

Retail trade

Wholesale trade

Construction

Other services

Forestry andlogging

-20 -15 -10 -5 0 5 10 15

Other

Computer and Electronic

Other transportation (air, rail, ship)

Food, beverage, tobacco

Machinery

Plastic, rubber & fabricated metals

Electrical equipm. and appliance

Primary metal

Chemical & pharmaceutical

Motor vehicles & parts

Wood, furniture & non-metallic

Petroleum and coal

Pulp, paper & printing

Textiles, clothing & leather

Manufacturing average

Manufacturing average

Total economy average

Total economy average

per cent

Other primary1

Manufacturing

Publicadministration

Finance andinsurance

12

Despite declines in manufacturing, provinces have generally experienced solid job growth

Despite declines in manufacturing, provinces have generally experienced solid job growth

Total Employment Growth by Region Since December 2005

Total Employment Growth by Region Since December 2005

Data is available up to November 2007.

Manufacturing Employment Growth by Region Since December 2005

Manufacturing Employment Growth by Region Since December 2005

Data is available up to November 2007.

-15

-10

-5

0

5

10

AtlanticCanada

Quebec Ontario WesternCanada

0

1

2

3

4

5

6

7

8

AtlanticCanada

Quebec Ontario WesternCanada

Per centPer cent

National average = 4.5%National average = 4.5%

Per centPer cent

National average = -7.0%National average = -7.0%

13

Canada and the US are each other’s largest trading partner...

Canada and the US are each other’s largest trading partner...

The US trades more with Canada than with any other country.

The US trades more with Canada than with any other country.

Canada’s trade* with the US is three times the size of its trade with the rest of the world.

Source: Statistics Canada

Distribution of U.S. Trade* - 2006

Canada18.5%

China11.9%

Mexico11.5%

Japan7.2%

Germany4.5%

All Others46.5%

Source: World Trade Atlas * Merchandise trade, February 2007

Distribution of Canadian Trade* - 2006

U.S., 72.80%

Japan, 2.60%

U.K., 2.45%Other EEC*, 6.25%

Other OECD2, 4.80%11.14%

14

The North American ContextThe North American Context

We are part of a larger North America trading bloc:– The US and Canada are each other’s largest trading partners.– The US is also Mexico’s largest trading partner. – Mexico is the US’s 3rd largest trading partner after Canada and

China. – Mexico is Canada’s 5th largest trading partner. NAFTA : world’s largest economic region (32% of global GDP)Importance of North America is growing: – The Economist estimates that US and Mexico will be the world’s

2nd and 5th largest economies by 2040– 225% growth in 2-way Canada-Mexico trade from 1993 to 2005We all need to use the advantage of North America to compete globally.

We are part of a larger North America trading bloc:– The US and Canada are each other’s largest trading partners.– The US is also Mexico’s largest trading partner. – Mexico is the US’s 3rd largest trading partner after Canada and

China. – Mexico is Canada’s 5th largest trading partner. NAFTA : world’s largest economic region (32% of global GDP)Importance of North America is growing: – The Economist estimates that US and Mexico will be the world’s

2nd and 5th largest economies by 2040– 225% growth in 2-way Canada-Mexico trade from 1993 to 2005We all need to use the advantage of North America to compete globally.

15 15

North America Faces Increasing Global Economic Competition

North America Faces Increasing Global Economic Competition

North America’s share of world exports has been fallingNorth America’s share of world exports has been falling

UNCTAD, 2007

02468

101214161820

NorthAmerica

USA Canada Mexico China India

1980 1990 2000 2005 0%5%

10%15%20%25%

30%35%

NorthAmerica

US Canada Mexico China India

1990 2005

… as has North America’s share of world inward foreign direct investment … as has North America’s share of world inward foreign direct investment

16

Canada and the USA enjoy the largest trading partnership in the world...

Canada and the USA enjoy the largest trading partnership in the world...

Two-way trade in goods and services totaled USD $626 billion in 2006. This represents trade of more than USD $1.2 million dollars a minute!!!Two-way trade in goods and services totaled USD $626 billion in 2006. This represents trade of more than USD $1.2 million dollars a minute!!!

Source: Statistics Canada, March 1, 2007Source: Statistics Canada, March 1, 2007

Canada - U.S. Trade in Goods & Services($CAN Billions)

U.S. to Canada

U.S. to Canada

Canada to U.S.

Canada to U.S.

0

200

400

600

800

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Canada - U.S. Trade in Goods & Services($CAN Billions)

U.S. to Canada

U.S. to Canada

Canada to U.S.

Canada to U.S.

0

200

400

600

800

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

17 17

Our Relationship Depends on an Infrastructure that is Highly Integrated

Our Relationship Depends on an Infrastructure that is Highly Integrated

From this perspective, it’s hard to see the border.

From this perspective, it’s hard to see the border.

Major RoadsPower Grid

Rail

18

Rail links extend beyond the Canada/U.S. Border

Rail links extend beyond the Canada/U.S. Border

19 19

Source: National Energy Board, CanadaSource: National Energy Board, Canada

It also Includes a Partnership in Petroleum and Natural Gas

It also Includes a Partnership in Petroleum and Natural Gas

Major Crude Oil Pipelines

Major Natural Gas Pipelines

20

Platte

St. James

Burnaby

Portland

Salt Lake City

Houston

Anacortes

Canadian & U.S. Crude Oil PipelinesCanadian & U.S. Crude Oil PipelinesEnbridge GatewayCapacity 400 kbpdIn service 2012-14

ExpressMontreal

LimaChicago

Cushing

Trans Mountain

TransCanadaAB-CaliforniaCapacity 400 kbpdIn service 2012AB-USGCCapacity 400-600 kbpdIn service 2012

Guernsey

Hardisty

Edmonton

Kinder MorganTMX Northern LegCapacity 400 kbpdIn service 2012TMX2 ExpansionCapacity 100 kbpdIn service 2011TMX3 ExpansionCapacity 300 kbpdIn service 2011

Enbridge

BP

Enbridge NorthAlberta ClipperCapacity 450+ kbpdIn service mid-2010Southern AccessCapacity 400 kbpdIn service 2009Southern LightsCapacity 185 kbpdIn service 4Q 2008Line 5 ExpansionCapacity 50 kbpdIn service 2008Line 6B ExpansionCapacity 44 kbpdIn service 2009Line 6C New LineCapacity 350 kbpdIn service 2011Line 9 ReversalCapacity 180 kbpdIn service 2009

existing

proposed

possible

Sarnia

TransCanadaKeystoneCapacity 435 kbpdIn service late 2009Cushing ExtensionCapacity 155 kbpdIn service late 2010Heartland ExtensionCapacity 600 kbpdIn service 2009-10

Enbridge SouthNew LineCapacity 450 kbpdIn service 2010New LineCapacity naIn service 2012-14Spearhead Expansion (N/S)Inc. Capacity 65 kbpdIn service 2009North Loop to ChicagoIn service 2009Enbridge New LineCapacity 400 kbpdIn service 2010

BPLight line ex-ChicagoCapacity 180 kbpdIn service 2009

AltexCapacity 250+ kbpdIn service 2011

ExxonMobilMustang ExpansionCapacity 38 kbpdIn service late 2008Pegasus ExpansionCapacity 31 kbpdIn service late 2008Clydesdale New LineCapacity 280+ kbpdIn service 2010

Kinder MorganExpress Option 1Capacity 160 kbpdIn service 2010Express Option 2Capacity 55 kbpdIn service 2010Express BulletCapacity 400+ kbpdIn service 2010Express RoutingPatoka South

WoodRiver

Patoka

Sunoco New LineCapacity 200 kbpdIn service 2012

ExxonMobil

21

US Jobs Related to Trade with CanadaUS Jobs Related to Trade with Canada

Based on modeling changes in import and export flows in the context of a global general equilibrium model of world trade benchmarked to 2001 U.S. production and international trade.

< 30,000

30,000-70,000

70,000-125,000

125,000 - 200,000

> 200,000

36 of the 50 states in the U.S. consider Canada as their most important market for exports.It is estimated that Canada-US trade supports more than 7.1 million jobs in the United States.

36 of the 50 states in the U.S. consider Canada as their most important market for exports.It is estimated that Canada-US trade supports more than 7.1 million jobs in the United States.

22

Texas jobs related to trade with CanadaTexas jobs related to trade with Canada

521,750 Texas jobs are supported by Canada-U.S. trade

Two way trade $22.6 billion in 2006

Canadians made more than 333,000 visits to Texas, spending $221 million

521,750 Texas jobs are supported by Canada-U.S. trade

Two way trade $22.6 billion in 2006

Canadians made more than 333,000 visits to Texas, spending $221 million

23

Canada Has Located More Than 42% of Its FDI in the United States

Canada Has Located More Than 42% of Its FDI in the United States

Canadian-owned businesses in the United States

Geographic Distribution of Outward FDI Stock from Canada, 2006

Geographic Distribution of Outward FDI Stock from Canada, 2006United States

42.7%

United Kingdom11.3%

Barbados7.3% Ireland

4.7% France3.2%Bermuda

3.0%

Others27.7%

Source: Statistics Canada, May 9, 2007

24

Canadian Businesses in TexasCanadian Businesses in Texas

25

Trade is Being Driven By Economic Integration

Trade is Being Driven By Economic Integration

25% of exports to the US - ENERGY25% of our merchandise trade is in automobiles, trucks and parts, which move back and forth across the border as part of one of the world’s largest single integratedindustrial networks50 % is in a wide assortment of materials and products -plastics, machinery, medicines, equipment - which are used as inputs for manufacturers on both sides of the border. 33% of Canada - US trade – finished goods, inputs,components and parts shipped between different branches of the same companies, located on different sides of the border.

25% of exports to the US - ENERGY25% of our merchandise trade is in automobiles, trucks and parts, which move back and forth across the border as part of one of the world’s largest single integratedindustrial networks50 % is in a wide assortment of materials and products -plastics, machinery, medicines, equipment - which are used as inputs for manufacturers on both sides of the border. 33% of Canada - US trade – finished goods, inputs,components and parts shipped between different branches of the same companies, located on different sides of the border.

26

Texas Exports to CanadaTexas Exports to Canada

27

Texas Imports from CanadaTexas Imports from Canada

28 28

But the size and diversity of the relationship hides a constraint

But the size and diversity of the relationship hides a constraint

Source: Conference Board of Canada

Most of our trade flows through only a few border crossings.

29

WHTI – And APHIS, Safe Port Act, Secure Flight, and

Import Safety

Border wait times; thickening

North American supply chains– critical to North American competitiveness

WHTI – And APHIS, Safe Port Act, Secure Flight, and

Import Safety

Border wait times; thickening

North American supply chains– critical to North American competitiveness

Border Security and Supply ChainsBorder Security and Supply Chains

30

Bilateral irritants: only a handful remain– Softwood lumber– Agricultural issues– ITARS– Intellectual Property

NAFTA – SPP– U.S., Canada, Mexico to meet April, New Orleans

Bilateral irritants: only a handful remain– Softwood lumber– Agricultural issues– ITARS– Intellectual Property

NAFTA – SPP– U.S., Canada, Mexico to meet April, New Orleans

Trade Issues:Trade Issues:

31

Canadian Ally in AfghanistanCanadian Ally in Afghanistan

32

Canada / TexasA Business Partnership

Canada / TexasA Business Partnership

11/04/2008 33

CanadaCanada

Proposed FY 2008-09 Consolidated Plan Budget

City Council BriefingApril 16, 2008

2

Purpose of Briefing

Present City Manager’s Proposed FY 2008-09 Consolidated Plan Budget

Present amendments proposed by the Community Development Commission

Review next steps

3

Consolidated Plan Budget Background

Consolidated Plan consists of 5 grants received from U.S. Department of Housing and Urban Development (HUD)

Community Development Block (CDBG)Home Investment Partnerships (HOME)American Dream Down-payment Assistance Initiative (ADDI)Emergency Shelter Grant (ESG)Housing Opportunities for Persons with AIDS (HOPWA)

4

Consolidated Plan Budget Background (cont’d)

$29.5m to be received from HUD for FY 2008-09 Consolidated Plan Budget

$811,052 decrease in FY 2008-09 total grant funding when compared to FY 2007-08

5

Consolidated Plan Process to Date

March 13th - City Manager’s Proposed Consolidated Plan Budget was presented to the Community Development Commission (CDC)

CDC Committees met during March to review and discuss their areas of the proposed budget

April 3rd - CDC discussed amendments and approved the City Manager’s Proposed Budget with their amendments

6

HUD Grant Funds

Community Development Block Grant (CDBG)Purpose - to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities

Annual appropriations include the following funding sources

New HUD entitlementHUD ReallocationsCity’s program incomeReprogramming of unexpended prior years’ funds

Entitlement - $17,679,465; allocation reduced by $625,331

7

HUD Grant Funds

HOME Investment Partnerships (HOME)Purpose - to provide, develop, support, produce, and expand the supply of decent and affordable housing

Annual appropriations for HOME include the following funding sources:

New HUD EntitlementCity Program Income

Entitlement - $7,625,416; allocation reduced by $273,555

8

HUD Grant Funds

American Dream Down-payment Assistance Initiative (ADDI)Purpose - to assist low-income families become first-time homebuyers through down-payment assistance

Annual appropriations for ADDI from HUD entitlement

Entitlement - $72,460; allocation reduced by $106,878

9

HUD Grant Funds

Emergency Shelter Grant (ESG)Purpose - to prevent homelessness and to assist those already homeless

Annual appropriations for ESG from HUD entitlement

Entitlement - $772,437; allocation reduced by $3,288

10

HUD Grant Funds

Housing Opportunities for Persons with AIDS(HOPWA)Purpose - to provide housing and/or supportive services to individuals with AIDS, persons who are HIV positive, and their families

Annual appropriations for HOPWA from HUD entitlement

Entitlement - $3,332,000; allocation increased by $198,800

11

Sources of Funds – from HUD

7,625,4167,898,971HOME (grant)

$17,305,776$17,927,867CDBG (grant)

72,460179,338ADDI (grant)

$29,481,778$30,292,830Sub-Total HUD Grant Funds3,332,0003,134,000HOPWA (grant)

772,437775,725ESG (grant)

373,689376,929CDBG (HUD reallocation)

FY 2008 - 09Proposed

FY 2007- 08 Adopted

Source of Funds

12

Source of Funds – Other Sources

1,314,3461,102,661CDBG Reprogramming (unspecified)

119,2530CDBG Reprogramming (specified)

656,6720CDBG Program Income – One Time

600,000600,000CDBG Program Income – Sub-recipient Retained (SDDC)

300,000400,000HOME Program Income (Housing)

$32,857,049$33,311,765Grand Total All Sources

35,000139,345CDBG Program Income – Intown Housing Developer Repayments

$350,000$776,929CDBG Program Income – Housing Activities

FY 2008 - 09Proposed

FY 2007- 08 Adopted

Source of Funds

13

Proposed Uses of FundsCity Manager’s Recommendation

and

CDC Recommended Amendments

14

848,224848,2240Public Improvements (CDBG)

$32,857,0493,332,000

772,437

72,460

7,925,416

3,040,957

571,936

1,135,435

12,451,612

$2,706,572

FY 2008-09CM Proposed

72,460179,338ADDI Activities

$2,706,572$3,789,697Public Services (CDBG)

$32,857,049$33,311,765Total3,332,0003,134,000HOPWA Activities

772,437775,725ESG Activities

7,925,4168,298,971HOME Activities

3,040,9573,191,636Program Oversight (CDBG)

571,936577,192Fair Housing (CDBG)

1,135,4351,222,300Economic Development (CDBG)

12,451,61212,142,906Housing Activities (CDBG)

FY 2008-09As Amended

By CDC

FY 2007-08AdoptedUse of Funds

Uses of Funds

15

Budget Considerations

Grant allocations reduced

Comply with HUD regulations

Consistent with 5-Year Consolidated Plan

Increased service level needs

Continue to allocate CDBG funds for Public Services at or near the 15% maximum allowed

16

Budget Considerations (cont’d)

Staff Accountability – continue performance evaluation pay increases and employee health benefits cost increases

Comply with City’s timely expenditure policy for CDBG funds

Continue to comply with HUD monitoring and reporting requirements

Cap reductions in CDBG due to reduction in grant allocation and program income

Public Services categoryPlanning and Program Oversight category

17

Budget Considerations (cont’d)

$2,706,57215% of Total = Maximum PS Budget Allowed

364,345FY 07-08 Program Income$17,679,465FY 08-09 CDBG Entitlement

18,043,810Total Current Year Entitlement + Prior Year Program Income

$2,706,572FY 2008-09 Proposed Public Services Budget

(1,083,126)Amount to be Reduced from Public Services FY09 Budget

$3,790,37115% of Total = Maximum PS Budget Allowed25,269,171Total Current Year Entitlement + Prior Year Program Income

6,964,345FY 06-07 Program Income (includes S108 Loan Sales) $18,304,796FY 07-08 CDBG Entitlement $3,789,697

CDBG – Public Services Cap Calculation Comparison

FY 2007-08 Public Services Budget

18

CDBG - Public ServicesHighlights & ChangesCity Manager’s Recommendation

No new programs proposed

Maintain funding level for existing programs that address most urgent needs

Funding recommendations are consistent with target populations identified in 2007 United Way Community Needs Assessment – Key Themes and Trends Indicators and Council Priorities

19

CDBG - Public Services Highlights & Changes (cont’d)City Manager’s Recommendation (cont’d)

Programs recommended for funding are consistent with the most urgent needs identified ($2.7M)

Children ($1.3M)Child CareAfter-School/Summer

Youths ($265k)Substance AbuseDental Health

Seniors($487k)Homeless population($177k)Re-entry Programs ($206k)Community Court ($301k)

20

CDBG - Public Services Highlights & Changes (cont’d)

City Manager’s Recommendation (cont’d)

Program reductions:Eliminated funding for prior years programs ($835k)

Adolescent Health Services ($60k)African-American Museum Youth Enrichment ($50k)Youth Development ($347k)Adult Substance Abuse($50k)City Minority Diabetes ($82k)AIDs Early Intervention and Education ($75k)Teen Violence – Victim Outreach ($35k)Youth Related Social Services ($30k)Dedicated SAFE II Expansion Inspection Support-DPD ($60k)Domestic Violence ($46k)

21

CDBG - Public ServicesHighlights & Changes (cont’d) City Manager’s Recommendation (cont’d)

Reduced funding for FY2007-08 one-time funded programs ($171k)

Fine Arts Education & Summer Camp ($20k)Arts Education Program ($21k)Low Birth Weight ($25k)Social Services and Outreach Program ($34k)Child Care Development Training System ($30k)Recruitment and Job Training Program ($25k)Community Youth & Senior Program (West Oak Cliff) ($16k)

No CDC amendments to the Public Services budget.

22

CDBG - HousingHighlights & ChangesCity Manager’s Recommendation

Continue funding for Major Systems Repair Program (formerly known as Basic and Minor Home Repair Programs)

Increase funding for Minor Plumbing Repair/Replacement

Continue funding for Reconstruction/SHARE Program (formerly known as Replacement Housing/SHARE Program)

23

CDBG - HousingHighlights & Changes (cont’d)

City Manager’s Recommendation (cont’d)

Continue funding new programs added during FY2007-08 by mid-year reprogramming

Housing Services Program – funding for CHDOs to assist homebuyers ($100k)

Neighborhood Enhancement Program – “Toolbox” of neighborhood improvements to compliment NIP in target areas ($180k)

No CDC amendments to the Housing activities budget

24

CDBG- Economic DevelopmentHighlights & Changes City Manager’s Recommendation:

Continue funding for Business Assistance Centers at multiple sites

RFP to be issued for FY2008-09 BAC contract awards

Continue use of revolving loan funds (program income of $600,000) for SDDC’s Business Loan Program

No CDC amendments to the Economic Development budget

25

CDBG - Public ImprovementsHighlights & Changes

City Manager’s Recommendation

Restore funding for citywide neighborhood street improvement petition program and Neighborhood Investment Program target areas ($679k)

Reduced in FY2007-08 budget due to available funding from prior fiscal years

No CDC Amendments to the Public Improvements budget

26

CDBG - Fair Housing & Planning/Program OversightHighlights & ChangesCity Manager’s Recommendation

Fair Housing, Planning, and Program Oversight activities are proposed at 20%

HUD regulations allow 20% of grant

Reductions to various programs recommended in order to comply with HUD’s spending cap regulations ($156k)

No CDC Amendments to the Fair Housing & Planning/Program Oversight budget

27

HOME Grant Highlights & ChangesCity Manager’s Recommendation

Funding for CHDO Development Assistance at 15% minimum (HOME funding requirements)

Funding for CHDO Operating Assistance at 5% maximum of entitlement

Reduction due to HOME regulations ($17k)

Increase funding for Reconstruction/SHARE Program (formerly known as Replacement/SHARE Program) ($70k)

28

HOME Grant Highlights & Changes (cont’d)City Manager’s Recommendation (cont’d)

Continue funding for client assistance in Tenant Based Rental Assistance (TBRA) Program

Continue funding for City administered TBRA for Ex-Offenders Program

No CDC Amendments to HOME budget

29

ADDI Highlights & Changes

City Manager’s Recommendation

Decreased funding for first-time homebuyers down payment assistance due to projected decrease funding grants

Reduction of $106,878 in grant

No CDC Amendments to ADDI budget

30

ESGHighlights & ChangesCity Manager’s Recommendation

Decrease funding in operations and program administration due to projected decrease in funding grant

Reduction of $3,288 in grant

Prior year funds will offset this year’s reduction

Homeless Assistance Center scheduled to open May 2008

Funds originally allocated for Day Resource Center to be used tooffset operation costs

No CDC Amendments to ESG budget

31

HOPWA Highlights & Changes

City Manager’s Recommendation

Funding allocations made in reference to priorities established by the Ryan White Planning Council (RWPC) and with needs identified in RWPC 2007 Comprehensive Needs Assessment

Decreased funding in Tenant Based Rental Assistance to maintain current service level. Program using unspent prior year funds to supplement FY 2008-09 funding

32

HOPWA Highlights & Changes (cont’d)

City Manager’s Recommendation (cont’d)

Increased funding in Emergency Assistance Reduced in FY 2007-08 due to funding from prior fiscal years

Increased funding in Housing Facilities Operations ($160k and Supporting Services ($207k)

No projects recommended in Housing Rehab/Repair category

33

HOPWAHighlights & Changes (cont’d)CDC Amendments

$61,140Total $61,140Housing Facilities Rehab/Repair

Increase:

Decrease:($61,140)Housing Facilities Operation

CDC Rationale:In response to community request, CDC supports available housing for eligible citizens and desires additional funding ($61,140) for needed repairs. CDC anticipates minimal impact to the Housing Facilities operation.

CMO Response: City Manager does not object

34

Next StepsApril 30 – Council amendments due

May 7 – City Council amendments discussion and straw votes

May 14 – Preliminary adoption by Council and call public hearing

May 15 – Begin 30 day public review and comment period

June 11 – Public hearing before City Council

June 25 – Final adoption by Council

August 15 – Submit FY 2008-09 Action Plan to HUD

October 1 – Implement plan

35

Attachment A Detailed Project Listing

36

Intentionally left blank

Memorandum

CITY OF DALLAS

Date: April 11, 2008

To: Honorable Mayor and Members of the City Council

Subject: Newsrack Program Update

Included on the agenda for April 16, 2008 is a briefing on the newsrack programwith a proposed alternative from the Dallas Morning News.

Please contact Theresa O’Donnell at 214-670-4127 should you need additionalintorm~tion.

nzalezCity Manager

c: Mary K. Suhm, City ManagerThomas P. Perkins, Jr., City AttorneyDeborah Watkins, City SecretaryCraig Kinton, City AuditorRyan S. Evans, First Assistant City ManagerDavid 0. Brown, Interim Assistant City ManagerJill A. Jordan, P.E., Assistant City ManagerRamon F. Miguez, P.E., Assistant City ManagerDavid Cook, Chief Financial OfficerJudge Jay Robinson, JudiciaryJeanne Chipperfield, Interim Budget Director, Financial ServicesTheresa O’Donnell, Director of Development Services

“Dallas, the City that works: diverse, vibrant and progressive”

Newsrack Program Update

City Council April 16, 2008

2

Purpose of Update• To present the current status of the newsrack

program and implementation• To review the key components of the current

program/ordinance• To present an alternative plan offered by the

industry stakeholders• To receive feedback on the alternative proposal

and direction on how to proceed

3

Goals of the Program• Key focus areas of Public Safety and Quality of Life are

supplemented by promoting viable and vibrant neighborhoods and improving the City’s physical environment for a positive impact on safety– Reduction in clutter and blight

• Uniformity of design and appearance• Consistency with other public improvement efforts

– Enhance public safety• Ensure adequate access for pedestrians and ADA

compliance• Ensure unobstructed access for emergency and public safety

equipment and personnel

4

Current View of Newsracks in Dallas

Elm and Ross

San Jacinto and Harwood

5

Current View of Newsracks in Dallas

AT&T Plaza at Jackson

Westchester at Katie

6

Background• City Charter gives the City the authority to grant

licenses for the use of public rights-of-way • City has been issuing licenses for newsrack

uses in the public right-of-way for over 50 years • Some publishers have not consistently

maintained updated or accurate information on their newsracks

• Enforcement, prior to passage of current ordinance, has been voluntary compliance

• Current ordinance passed on June 20, 2007

7

Current Program Provisions• Establishes placement criteria for individual racks• Distance requirement between newsrack groupings – 75’

– Maximum group size – 8• Establishes limited placement criteria for multi-box newsracks with

specific locations and number of newsracks determined by a plan prepared by the Director and approved by the City Council

• Establishes process for creating multi-box newsrack zones• Designates the expanded CBD area as the first multi-box newsrack

zone• Establishes design criteria for individual racks• Establishes a lottery process• Establishes costs of program implementation• Provides a phased implementation plan• Provides for proposed fee and costs to the publishers

– See Appendix A for additional details

8

Expanded CBD Map

9

Multi-box Newsrack Selection

10

Multi-box Newsrack Selection

11

Publisher Concerns• Costs of new program

– Increase from $5 to $65 per box per year for individual newsracks

– Increase from $5 to $179 per box per year for multi-box newsrack units (includes annual maintenance costs)

• Amortized over a period of 5 years– Uniform design standard requires an entire fleet of new

individual racks for the publishers

• Setback requirements too strict– Expanded CBD will see attrition for available locations– May cut back on circulation and distribution– Publications of higher frequency (daily, weekly) may lose

business due to the loss of available space and an open lottery system

12

Additional Concerns Expressed• Higher costs will reduce the number of

newsracks which may cut back on projected revenue (license fees)

• May have negative impact on smaller/independent publications

• City’s upfront costs of multi-box newsracks requires interim financing – Range of costs is $877,000 to $1.2 million

13

Dallas Morning News Proposal• Publishers have raised the idea of allowing a third party

contractor to administer the program that they develop and bring to the City for approval

• Dallas Morning News (DMN) worked diligently with the other publishers to develop a plan that:– Meets some of the City’s Public Safety and Quality of Life goals

for the program– Reduces the costs to the publishers

• Through reduced scope of regulation and reduction of requirements

– Reduces the need for additional City staff and associated costs– Eliminates the need for City upfront financing

14

DMN Proposal Details• The DMN has agreed to

– Purchase, own, install and maintain as many multi-box units needed to meet the current demand up to 300 4-unit modules

– Lease available units to the publishers. Bill and collect an annual fee of $60 per year per rack

• Cost of unit amortized over a 7-year period• Includes monthly maintenance costs and annual City license

fee of $5• Publishers may share the $60 cost per unit, if they share a

space with a split door• DMN stipulates this may increase each year, but will be

capped at a reasonable rate

15

DMN Proposal Details

Lottery Process• The DMN in conjunction with City staff will conduct a

lottery– For positioning within multi-box newsracks– For determination of space in multi-unit newsrack, if demand

exceed availability– Publishers with multiple publications that do not receive a spot

for each at a given location can substitute publications up to amaximum number of spots the publisher wins in the lottery

16

DMN Proposal Details• DMN asks that the City agree to

– Reduce the distance between multi-box units from 75 feet to 50 feet

– Contain the multi-box unit district to just the CBD bounded by the freeway loop and Victory Park

– The remainder of the City be regulated and enforced only by placement and location criteria without design specifications –

• Design specifications dictate shape, color, and size of newsrack box– With consent of the City, allow the DMN the option to transfer

ownership and administration of the CBD modular units to a different publisher with the purchase of the units at book value

– City will issue decals for licensed individual newsracks annually and collect annual license fee

– Allow the group of multi-box units to increase to 16 available slots (8x8)

• See illustration on slide 18 and 19

17

New Multi-Unit Zone Boundaries

The CBD Loop and Victory Park

18

Increasing Multi-Box Unit Size The photo on the left depictsa group 24 free standing racks in front of the Dallas Morning News.There are approximately 11 locations in the CBD that have roughly the same amount in a group.

The photo on the right depictsa group of 8x8 units with both daily and split door availability.A group this size easilyaccommodates a grouping similarto the above, but only if theoverall dimensions do not violateany of the 28 setback requirements.

19

Staff Concerns with DMN Proposal

• May have to competitively bid the program• Some, but not all of City’s aesthetic and public safety

goals are satisfied• City license fees must be examined in light of new

reduced regulation– Maintain full cost recovery

• City may need to collect fees and remit payment back to DMN

• DMN must conduct lottery in accordance with City specifications

• DMN will have to submit a plan for the location and number of multi-box newsracks for review and approval by City Council

20

Staff Concerns with DMN Proposal (cont)

• DMN cannot transfer without City consent or agreement

• Reduction of expanded CBD to just CBD proper and Victory Park

• Loss of aesthetic goals outside CBD

21

DMN Plan - Pro’s• Eliminates need for additional expenditure of public

dollars – borrowing the initial investment– Additional staff for program administration

• Allows for a public/private effort to address community issue

• Captures the goals of enhanced public safety and reduced visual clutter in our downtown

• Publishers realize a smaller fee increase

22

DMN Plan - Con’s

• Does not achieve uniformity of design outside CBD

• Less direct control of the program• Remaining concerns need further

discussion with publishers

23

Next Steps

• Receive Council feedback and pursue direction based on suggestions

• Meet with the publishers following City Council meeting to give an update and receive feedback

• Bring the specifics of the proposal to the Quality of Life Committee to finalize recommendations

24

Appendix A• Current Program Provisions

• Individual Newsracks specified model or equivalent

• Current Setback Requirements

• Current Lottery Process

25

Current Program Provisions• Establishes placement criteria for individual

racks• Establishes process for creating multi-box

newsrack zones• Designates the expanded CBD area as the first

multi-box newsrack zone• Establishes design criteria for individual racks• Establishes a lottery process• Estimates costs of program implementation• Provides a phased implementation plan• Provides for proposed fee and costs to the

publishers

26

Multi-Box Newsrack Zone• The expanded CBD is a pre-designated Multi-

box zone– Includes the CBD Loop, Deep Ellum, and a portion of

Uptown including Victory Park• Other multi-box zones can be established in

defined areas where -– a proliferation and clutter of newsracks exist– an established urban or neighborhood character

• Only multi-box newsracks will be permitted in a multi-box zones

• No individual racks will be permitted within the multi-box zone

27

Individual Newsracksspecified model or equivalent

This criteria and regulation will not carry forward under the DMN proposal

28

Current Setback Requirements• Staff worked closely with Public Works,

Transportation, and Public Safety to incorporate distances that promote and maintain public safety and a steady flow of vehicular and pedestrian traffic

• In addition to the 75’ rule between groups of individual racks there are 28 other setback requirements in which must be adhered to by any individual or group of newsracks

29

Current Setback Requirements

3Parking Meter

3Monument

3Mailbox

3LRT Ticketing Equipment

3LRT Shelter

3LRT Informational Sign

3Kiosk

3Fire Protection System Valve

3Fire Hydrant

3Fire Department Inlet Protection

3Drinking Fountain

3Doorway

3Crosswalk

3Art

0Alley

SETBACK (feet)FEATURE

30Visibility Triangle (CBD)

45Visibility Triangle

15Light Rail Centerline Track

7Bus Stop Sign

7Bus Stop Bench

7Bus Shelter

6Bicycle Rack

5From Curb orRoadway if NR facescurbface orpavement edge

3Water Feature

3Trash Receptacle

3Traffic Control Signal Box

3Stop Sign

3Police/Fire Call Box

3Planter

SETBACK (feet)FEATURE

30

Current Lottery Process• Preference will be given based on legally

established grandfathered locations only for the initial lottery– Grandfathered locations consists of all right-of-way

locations provided publisher’s list prior to 6/20/07• Secondary lotteries will be conducted 5 years

after initial lottery to allow new publications or existing publications opportunity to receive prime locations

• Lotteries will be conducted on an as-needed basis to fill vacated spaces

31

Appendix B• Cost Arrangement • City Installed Multi-box Newsrack • Estimated costs for Multi-box Newsracks

in expanded CBD • Annual Maintenance Costs• City Costs• Publisher Costs

32

Cost Arrangement

– City purchases complete multi-box newsrack• Includes multi-box frame and boxes• Includes installation

– Publishers pay• Yearly amortization for multi-box

newsracks• Administrative costs• Maintenance costs

– City administers program

33

City InstalledMulti-box Newsrack

$18.00

$12.00

$9.00

Annual Maintenance

Costs per box

$65.00

$65.00

$65.00

Annual Admin.

Costs per box

$160.00$3,2004 boxes

$123.00$3,7006 boxes

$105.00$4,2008 boxes

*Costs per box/space per year

Installed Costs per Multi-box Newsrack

Multi-box Newsrack (frame & boxes)

* 5 year amortization of multi-box newsracks, 5 years is the average lifetime of a newsrack

34

Estimated costs for Multi-box Newsracks in expanded CBD

• Estimated need for 138 8-box units and 93 4-box units (frame and box)

– 138 units X $4,200 ea. = $579,600– 93 units X $3,200 ea. = $297,600

• Total cost =$877,200*

35

Annual Maintenance Costs

• Services included for annual maintenance cost* monthly inspections* graffiti removal* paint touch-up* bolt tightening and minimal maintenance

• Costs do not include• Major repairs or replacement of damaged equipment• Repairs to coin operated devices

36

City Costs• Estimated Operating Costs

– Implementation of expanded CBD Multi-box Newsrack Zone

• $877,200• Estimated Administrative Costs

– Additional Staff – 4 FTEs• $321,500 (salaries and equipment)

• *Total Estimated Cost• $1,198,700

* Costs for additional multi-box newsrack zones not calculated in this figure

37

Publisher Costs• Multi-box Newsrack program

– Annual cost per box $105 (based on 8 unit)

– Annual maintenance cost per box $ 9 (based on 8 unit)

– Annual administrative cost per box $ 65• Individual Boxes

– Cost per standardized box varies– coin $500.00 (approx.)– free $180.00 (approx.)

– Annual maintenance cost per box $ 0– Annual administrative cost per box $ 65

• *Application fee (reduced from $750) $ 100

*(one time fee per publisher)

38

Appendix C

• Current Demand in the Expanded CBD• Reduction of 75 Foot Rule• Publisher Support

39

Current Demand in the Expanded CBD

• The following statistics are from the database of legally operating/grandfathered locations based the publisher’s lists provided prior to 6/20/07– Locations with 17 - 24 publications: 18– Locations with more than 24 publications: 1

• If the City agrees to add an additional 4 broadsheet unit as depicted in Slide 18, the current legally-operating (grandfathered) demand will be met with the need for 1 lottery, otherwise 19 lotteries will be conducted

40

Reduction of 75 Foot RuleThe diagram below illustrates that for some blockfaces the 75’ rule eliminates the ability to accommodate the current demand.

41

Publisher Support

• The DMN met area publishers to garner support for the alternative plan

• So far, 20 of the 24 operating publications have officially signed on in support of the DMN’s proposal– Other publishers have communicated with

staff that they would support the program