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Josephine MDD sets preliminary 70/10/20 budget split, prioritizes grocery recruitment
Summary
The Josephine Municipal Development District board agreed on a preliminary budget framework that sets roughly 70% for projects/incentives, 10% for operations and marketing, and 20% for reserves, and directed staff to prepare a budget focused on market research and recruitment for a grocery store.
The Josephine Municipal Development District board directed staff to prepare a budget centered on long-term incentives to recruit a grocery store and related commercial development, agreeing on a preliminary allocation split of about 70% projects/incentives, 10% operations/marketing, and 20% reserves for next fiscal-year planning.
Board members said residents repeatedly named a grocery store as the top economic-development priority. Staff cautioned that, under the city’s charter and local government code, the district cannot expend funds until a budget is on file for the coming fiscal year, so the board’s guidance is for staff to prepare a budget for the June meeting that the board can approve and forward to city council.
Members emphasized the importance of reliable market data before offering incentives. The meeting record reflected varying trade-area estimates: one commonly cited figure for the district’s core service area was about 12,400 people; other, broader estimates reached upward of 25,000. Board members asked staff to budget for market analysis, recruitment materials and branding, and to evaluate data services such as Placer.ai or consultant studies to support outreach to prospective grocers and site selectors.
The board discussed administrative costs and staffing arrangements for the MDD. Staff recommended a simple reimbursement arrangement for board/administrative time rather than listing full salaries and benefits in the initial budget; the board asked staff to present line-item estimates for salary reimbursements, consultant fees and routine operating expenses.
The board gave staff direction to prepare a draft budget using the agreed preliminary ratios and present a complete packet at the June meeting (scheduled for June 29) so the board can act and forward the budget to city council. No final appropriations were made at this meeting.
Ending: Staff will bring a draft budget incorporating the 70/10/20 framework, detailed salary/consultant estimates and recommended market-research contracts to the board for action at the June meeting.
