New York City Mayor Bill de Blasio signed legislation that assigns the Independent Budget Office to create a report on the $2.8 billion of economic development tax breaks the city awards annually.
De Blasio signed the bill last week making the Big Apple the first city in the nation to create a system that analyzes economic performance. The budget watchdog is both city-funded and nonpartisan.
The law also formalizes cooperation with city agencies that will provide information to the IBO for its review and creates a process for the watchdog to collaborate with the City Council on the timing and topic of the report.
The IBO will use its resources to turn out the first year's review, according to City Council officials. After that, it would require one additional doctorate-level employee to develop and maintain the evaluation process, with an estimated cost of $73,375 and $146,750 for fiscal 2018 and 2019, respectively.
The city charter had already required the IBO publish three annual reports: a fiscal outlook and analyses of the mayor's preliminary and executive budgets.
In remarks at the bill signing, de Blasio thanked the legislation's sponsor, City Council Speaker Melissa Mark-Viverito.
The mayor also signed legislation that expands the boundaries of the DUMBO (Down Under the Manhattan Bridge Overpass) Business Improvement District and increases the BID's annual expenditures.
In his remarks on signing the DUMBO bill, the mayor thanked its sponsor, City Council Member Julissa Ferreras-Copeland, chair of the finance committee. The City Council took over passing laws creating individual business districts back in 1990.
In January, the City Council approved the expansion of the DUMBO BID, with the new law adding to the existing BID an area to the east called DUMBO Heights, some properties around Brooklyn Bridge and a commercial property near the end of the district.
The legislation also raises the BID assessment by $185,000 a year to $835,000. The extra money will be used to pay for maintenance and sanitation, marketing and promotion, capital improvements and administration.
The DUMBO BID was created in 2005 when the area was mostly used for manufacturing and shipping. Since then, it's changed into a mixed-use community with the tech sector being its most significant industry now. The BID consists of many digital design, digital marketing, education tech and e-commerce firms.
The new legislation results in no fiscal impact to the city's revenue, according to the City Council's finance division.
