Downtown Columbia taxing district took in more than it spent this year

The Columbia Downtown Community Improvement District ended its 2018 fiscal year on a high note. According to financial reports, the special taxing district collected just about $130,000 more than it budgeted for by Sept. 30.

For executive director Bob Hohenstein, that means two things.

“Businesses in the district are doing well. They are selling more of their product, more of their services,” he said. “The other thing it means is that people are being employed, that they are able to create jobs.”

Despite collecting more than it spent, sales tax revenue was down. In FY 2016 and 2017, the district budgeted for sales tax revenue to hit around $633,000. But in FY 2018, the sales tax budget had dropped to just over $594,000.

Actual totals for FY 2018 were $607,533.83. Hohenstein said he’s not concerned and it’s something they’ve planned for by creating a conservative budget.

“It would be great if that number just kept growing and growing and growing,” he said. “But the reality is it’s not going to continue to grow and grow and multiply every year.”

67 cents of every dollar spent goes back to the local economy, said Hohenstein.

“You don’t get that often with larger businesses,” he said. “As a group, [the district] is a hell of an economic engine.”

Property assessments, which also fund the district, saw modest growth in the last business year. Hohenstein said it just goes to show that the businessmen and women of the district continue to invest in their properties to make them more attractive to potential clients, customers, and residents.

“They’re true entrepreneurs and they’re very good at it,” he said. “These folks invest a lot of money and that sometimes gets lost in the conversations.”

The district spends a majority of its money on program management, which includes salaries and rent. But the second highest expenditure, coming in at 21 percent of their total budget, is cleaning and maintenance at $169,994.

“You’ve got to work hard to make sure that experience is first class, that it’s clean, that’s it’s family friendly, and that it’s safe,” said Hohenstein. “We spend a lot of money here in the district to keep this district clean in terms of trash removal and things of that sort.”

In the end, Hohenstein said the purpose of the special taxing district and the extra half cent sales tax, is to market downtown Columbia as the unique place to be for residents.

“It’s eclectic,” he said. “[It’s] got a wide variety of things, from retail stores to restaurants to drinking establishments, to theaters.”

The district spent about $47,000 this year on its holiday decor.