Stories indexed with the term ‘FY 2015 budget’

City Council Passes FY 2015 Budget

The city of Ann Arbor fiscal year 2015 budget has been approved by the city council. The fiscal year starts on July 1, 2014. City council action came after 2 a.m. on May 20, 2014 at a meeting that started at 7 p.m. on May 19.

From left: Margie Teall (Ward 4), Chuck Warpehoski (Ward 5), Stephen Kunselman (Ward 3) and Sumi Kailasapathy (Ward 1).

From left: Margie Teall (Ward 4), Chuck Warpehoski (Ward 5), Stephen Kunselman (Ward 3) and Sumi Kailasapathy (Ward 1). Deliberations on the  FY 2015 budget extended until 2:15 a.m.

The general fund component of the budget is roughly $98 million this year. In terms of staffing changes, city administrator Steve Powers’ proposed budget included one additional firefighter position, three additional police officers and one additional rental housing inspector. Those staffing levels remained the same at the conclusion of the May 19 deliberations.

When the general fund is added in with the rest of the city’s budget – the street fund, water fund, sewer fund, parking fund, and the like – the total expenses proposed for FY 2015 come to about $330 million.

The council’s deliberations on the budget resulted in several amendments, but none that had a dramatic impact on the budget. Neither of the amendments affecting the proposed police staffing levels succeeded – one that would have increased the number of polices officers by two officers instead of three, and another that would have increased the number of officers by five instead of three. A proposal to restore fall loose leaf collection failed, as did a proposal to extend compost collection to a year-round service.

Two amendments that would have affected Ann Arbor SPARK also failed. One would have required the local development finance authority (LDFA) to reserve more money for infrastructure improvements – like a high-speed communication network – and one of the likely reductions would have come from Ann Arbor SPARK. The other failed amendment would have eliminated the $75,000 annual contribution the city makes to SPARK from its general fund. Those two amendments alone took about 90 minutes of council deliberation.

Out of the 18 amendments that had been disseminated in advance of the meeting, the council approved just seven. Among the amendments getting at least a six-vote majority was a proposal to add funding for “community-facing” climate action programs, paid for in part with funds that would have otherwise been used for an Ellsworth Road corridor study.

Also getting approval were two amendments meant to generate funding to pay for animal control services. One of those amendments used money that would have otherwise funded a commercial sign inventory to pay for animal control services from the Humane Society of Huron Valley. The other encouraged increased compliance with the city’s dog licensing law, which would generate additional revenue. The city estimates current compliance with dog licensing requirements at only 7%.

The $300,000 in the proposed general fund budget allocated for the demolition of the city-owned 415 W. Washington building was eliminated for that purpose, without any other purpose identified for spending the money.

Two budget votes related to streets got approval – one directing the city administrator to explore alternative methods of street funding, and a second one allocating more money this year from Act 51 funds for alternative transportation. The council also requested more information that would allow it to set the amount of Act 51 funding for alternative transportation at the appropriate percentage level – 2.5% or 5%.

The council’s deliberations on the FY 2015 budget began around 9 p.m. and stretched more than five hours with a final vote of approval coming at 2:15 a.m. the following morning. Mayor John Hieftje, who missed the council’s May 12 work session due to illness, was not back to full strength at the May 19 meeting and departed the meeting around 1 a.m. Mayor pro tem Margie Teall (Ward 4) led the remainder of the meeting.

Outcomes on each amendment that was considered, in chronological order, are presented below, excerpted from The Chronicle’s live meeting updates. Each timestamp includes a link to council deliberations on that item, as reported in the live updates. In brackets are the names of councilmembers who sponsored the amendment. [Full Story]

May 19, 2014: Council Live Updates

Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s May 19, 2014 meeting includes all the material from an earlier preview article published last week. The intent is to facilitate easier navigation from the live updates section to background material already in this file.

Results on the outcome on many individual agenda items can be found published as separate briefs in the Civic News Ticker section of the website. A summary of the FY 2015 budget deliberations will be available here, when its is published: [link]

The council’s second meeting in May is specified in the city charter as the occasion for the council to adopt the city administrator’s proposed budget with any amendments. If the council does not take action by its second meeting in May, the city administrator’s proposed budget is adopted by default. The Chronicle has previously reported a preview of some possible budget amendments: [here].

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

The sign on the door to the Ann Arbor city council chamber includes Braille.

The council’s May 19 meeting agenda includes more than just the adoption of the budget.

Related to the setting of the annual budget are items like setting fees associated with the public services area (for example, site plan review) and the community services area (for example, farmers market stall fees), as well as rate increases for water, sewer and stormwater utilities.

Also related to the budget – and not just for this next year – is an agenda item that will revise the city’s policies for contributions to the city’s pension system and retiree health care. In broad strokes, those revisions are meant to accelerate contributions during a strong economy and maintain contributions at least at the level of the actuary-recommended amount during weaker economies.

Another budget-related item on the May 19 agenda is one related to the social infrastructure of the community – allocation of general fund money to nonprofits that provide human services. The city approaches this allocation through a process that is coordinated with Washtenaw County, the United Way, the Ann Arbor Area Community Foundation and other partners. The total amount allocated for the operation of programs is about $4.3 million. The city of Ann Arbor’s general fund contribution is about $1.2 million, which is the same amount that has been contributed for the last several years.

Related to human services support is an agenda item that would accept a $113,154 planning grant from the Michigan Supreme Court to establish a specialized mental health court.

Along with social infrastructure, the council will also be asked to approve an allocation that includes utilities infrastructure, to address the needs that resulted from the harsh winter. The resolution that the council will consider would allocate money from the fund balance reserves from three sources: $1.7 million from the major street fund, $638,000 from the local street fund, and $666,000 from the water fund. Those amounts include $461,171 from the state of Michigan.

The council will also be asked to approve money for building new physical infrastructure – about $2.6 million for the reconstruction of a segment of Pontiac Trail. The segment stretches north of Skydale Drive to just south of the bridge over M-14/US-23. The street reconstruction project also includes water mains, sanitary sewer, and construction of new sidewalk along the east side of Pontiac Trail, and installation of bike lanes.

Special assessments to pay for three other sidewalk projects also appear on the council’s agenda in various stages of the special assessment process. Those future projects are located on Barton Drive, Scio Church Road, and Newport Road.

The council will be asked to approve the city’s application for federal funding to support the acquisition of development rights in Superior Township for two pieces of property on either side of Vreeland Road. The properties are near other parcels already protected as part of the city’s greenbelt initiative.

The city council will also vote on the confirmation of two appointments: Katherine Hollins to the city’s environmental commission; and Bob White, as a reappointment to his fourth term on the city’s historic district commission.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m. [Full Story]

Budget Debate Preview: Cops, Leaves

The main item on the Ann Arbor city council’s May 19, 2014 agenda is the adoption of the budget for the 2015 fiscal year, which starts on July 1, 2014.

Ann Arbor city administrator Steve Powers at the council's May 12, 2014 working session. He presented his recommended FY 2015 budget to the council in April. The council can amend that budget on May 19.

Ann Arbor city administrator Steve Powers at the council’s May 12, 2014 working session. He presented his recommended FY 2015 budget to the council in April. The council can amend that budget on May 19.

Under the city charter, the council needs to adopt the budget, with any amendments, on a seven-vote majority. If the council is not able to achieve a seven-vote majority on an amended budget, then under the city charter, the city administrator’s proposed FY 2015 budget will be adopted by default.

At the conclusion of a May 12 city council work session, Tom Crawford, the city’s chief financial officer, reminded councilmembers of the constraints they were working under when considering budget amendments. The forecast for fiscal year 2014, he told the council, is that about $1.5 million in the fund balance reserve will be used – which compares to the budgeted use of about $2.8 million of fund balance.

But Crawford cautioned that the unspent budgeted amount likely reflected a delay in that spending, not an actual savings. Crawford expected that the fund balance reserve at the end of FY 2014 would be about 10% of operating expenses.

The proposed FY 2015 budget would use $2.8 million in fund balance, Crawford told the council, which would take the fund balance down to the 7-9% range. That’s the bottom of the minimum 8-12% range that has been the council’s policy. “I say all that because I want to remind you that you’re entering a budget deliberation with pretty tight constraints,” Crawford said. So Crawford encouraged the council to find offsets to any additional expenses they wanted to incur – whether those were recurring or non-recurring expenses.

Councilmembers were asked to submit drafts of their proposed amendments to staff by the close of business on Thursday so that staff could assist in crafting the amendments. This report includes some additional background on what’s in the budget, as well as a description of 17 possible budget amendments that might be proposed.

Detail is provided on amendments in three areas: police staffing, leaf/compost collection and the local development finance authority (LDFA).
[Full Story]

FY 2015 Budget Amendments Preview

The main item on the Ann Arbor city council’s May 19, 2014 agenda is the adoption of the budget for the 2015 fiscal year, which starts on July 1, 2014.

Under the city charter, the council needs to adopt the budget, with any amendments, on a seven-vote majority. If the council is not able to achieve a seven-vote majority on an amended budget, then under the city charter, the city administrator’s proposed FY 2015 budget will be adopted by default.

To alert the public to potential budget amendments that could be debated on Monday night, here’s a tentative list of possible proposals, with provisional councilmember sponsors in parens:

  • Police staffing. One proposal would increase the number of sworn police officers by five … [Full Story]

Work Session Focus: Safety, Infrastructure

An Ann Arbor city council work session set for 7 p.m. tonight – May 12, 2014 – includes three items on its agenda: (1) an update on a traffic enforcement initiative “26 Weeks to Safer Streets”; (2) a review of transportation and infrastructure issues that will cover topics from funding for road repair, resurfacing, water and sewer lines, and pedestrian safety; and (3) the FY 2015 budget.

This work session takes place one week before the council is scheduled to deliberate on its FY 2015 budget and adopt it – at its May 19 regular meeting. The work session proceedings can be followed live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

Updated at 4 … [Full Story]

May 5, 2014: City Council Live Updates

Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s May 5, 2014 meeting includes all the material from an earlier preview article published last week. The intent is to facilitate easier navigation from the live updates section to background material already in this file.

The Ann Arbor city council’s voting agenda for its May 5, 2014 meeting is relatively light, but features some significant public hearings and a potentially controversial contract related to footing drain disconnections.

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

One public hearing will be held on the FY 2015 budget. The 2015 fiscal year starts on July 1, 2014. City administrator Steve Powers presented his proposed budget to the council at its previous meeting, on April 21. The council will take up possible amendments and vote on the adoption of the budget at its following meeting, on May 19.

Separate budget-related public hearings on May 5 will be held on fee increases in the community services area and the public services area. Notable is the proposed increase in the fees for stalls at the farmers market. The annual fee for one stall will increase from $300 to $450.

A significant voting item on the agenda is a roughly $750,000 contract with CDM Smith Inc. for continued work in connection with the city’s footing drain disconnection (FDD) program. In 2012, the city’s program to disconnect footing drains from the sanitary sewer system was suspended by the council in some areas of the city. It has continued in other geographic areas and as part of the city’s developer offset mitigation program, which requires owners of new developments to complete a certain number of FDDs. The purpose is to offset the additional flow in the sanitary system caused by new construction.

The CDM contract could draw scrutiny, because the city is currently undertaking a sanitary sewer wet weather evaluation (SSWWE) study. It’s supposed to yield a recommendation about whether to continue with the FDD program, and if so, in what form. In addition, the city’s ordinance, which requires property owners to undertake FDDs, was challenged in a lawsuit filed earlier this year. That case is pending as the city has removed the case from state to federal court and the plaintiffs are seeking to remand it back to state court. A hearing is scheduled for May 28 on the question of remand.

Also on the agenda are two contracts for general construction inspection work, each for $100,000, with Stantec Inc. and Perimeter Inc.

Three parks will be getting upgrades to play equipment if the council approves a contract with Game Time c/o Sinclair Recreation for $132,000. Arbor Oaks Park and Scheffler Park will have their play structures replaced, and North Main Park will be getting a tire swing and chess table.

Mowing and snow clearance in city parks in the future be handled with two mower/snow-broom combination units, if the council approves the purchase from Spartan Distributors for $101,000.

Three land-use items that were recommended for action by the city planning commission appear on the council’s May 5 agenda.

First, the council will consider giving initial approval to a change in the city’s zoning ordinance related to drive-thrus. In addition to providing a definition, the ordinance revision would require drive-thrus to obtain special exception use permits, which would be allowed only in the O (office), C2B (business service) and C3 (fringe commercial) zoning districts. Drive-thrus would not be allowed in the C1, D1, D2, and other commercial districts. Currently, drive-thrus are allowed in C3 districts without a special exception use. They are allowed as special exception uses in the C2B district.

Second, the council will consider giving initial approval to a rezoning request and area plan for 515 Oxford, to convert a house for use as an annex to the Delta Gamma sorority. The main sorority house is located nearby at 626 Oxford. The request, supported by the city’s planning staff, is to rezone the parcel from R4A (multi-family dwelling) to R2B (two-family dwelling and student housing). The building is notable because it was originally designed in 1940 by architect George Brigham, who used it as his home and architectural studio.

And third, the council will consider final approval for the rezoning of land that’s been donated to the city by developer Bill Martin, founder of First Martin Corp. The 2.2-acre parcel at 3301 Traverwood Drive is being added to the adjacent Stapp Nature Area, near the Leslie Park golf course.

Sidewalks are again on the agenda in the form of a public hearing on the proposed Newport Road special assessment, which is supposed to help fund a stretch of sidewalk north of Wines Elementary School. And the council will consider the acceptance of an easement for a sidewalk at 2300 Traverwood Drive.

The council will also consider a routine item this time of year – transferring delinquent water utility, board-up, clean-up, vacant property inspection, housing inspection fees, and fire inspection invoices to the city tax roll for July 2014. The council will also be asked to approve the denial of claims against the city by the board of insurance administration.

Management of the deer population will receive some attention in the form a resolution on the May 5 agenda that directs the city administrator to partner with other organizations to develop strategies for deer management. The administrator will be asked to report back to the city council by July 31, 2014 on the status of the partnership, including budget and timelines. The resolution, put forward by Jane Lumm (Ward 2), states that the desired outcome is a community-endorsed deer management plan.

Appointments to the city’s environmental commission (EC) are on the May 5 agenda, having been postponed at the council’s April 21 meeting. All three that appeared on the April 21 agenda were reappointments for currently serving members of the EC: Kirk Westphal, David Stead, and Susan Hutton. However, the intention at the May 5 meeting is to substitute the original resolution with one that does not include Stead. In addition, a separate item has been added, after initial publication of the agenda, to nominate and appoint Katherine Hollins to the EC.

Street closings on the agenda include: East Washington for the Ann Arbor Book Festival on June 21; East Liberty for Sonic Lunch on Aug. 21; and several neighborhood streets for the 2014 Glacier Area Homeowners Association Annual Memorial Day Parade on May 26.

An item added to the agenda on May 2 is a resolution that would remove any reference to felony convictions on city job applications.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m. [Full Story]

May 5, 2014: City Council Preview

The Ann Arbor city council’s voting agenda for its May 5, 2014 meeting is relatively light, but features some significant public hearings and a potentially controversial contract related to footing drain disconnections.

Screenshot of Legistar – the city of Ann Arbor online agenda management system. Image links to the next meeting agenda.

Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the May 5, 2014 meeting agenda.

One public hearing will be held on the FY 2015 budget. The 2015 fiscal year starts on July 1, 2014. City administrator Steve Powers presented his proposed budget to the council at its previous meeting, on April 21. The council will take up possible amendments and vote on the adoption of the budget at its following meeting, on May 19.

A separate budget-related public hearing on May 5 will be held on fee increases in the community services area. Notable is the proposed increase in the fees for stalls at the farmers market. The annual fee for one stall will increase from $300 to $450.

A significant voting item on the agenda is a roughly $750,000 contract with CDM Smith Inc. for continued work in connection with the city’s footing drain disconnection (FDD) program. In 2012, the city’s program to disconnect footing drains from the sanitary sewer system was suspended by the council in some areas of the city. It has continued in other geographic areas and as part of the city’s developer offset mitigation program, which requires owners of new developments to complete a certain number of FDDs. The purpose is to offset the additional flow in the sanitary system caused by new construction.

The CDM contract could draw scrutiny, because the city is currently undertaking a sanitary sewer wet weather evaluation (SSWWE) study. It’s supposed to yield a recommendation about whether to continue with the FDD program, and if so, in what form. In addition, the city’s ordinance, which requires property owners to undertake FDDs, was challenged in a lawsuit filed earlier this year. That case is pending as the city has removed the case from state to federal court and the plaintiffs are seeking to remand it back to state court. A hearing is scheduled for May 28 on the question of remand.

Also on the agenda are two contracts for general construction inspection work, each for $100,000, with Stantec Inc. and Perimeter Inc.

Three parks will be getting upgrades to play equipment if the council approves a contract with Game Time c/o Sinclair Recreation for $132,000. Arbor Oaks Park and Scheffler Park will have their play structures replaced, and North Main Park will be getting a tire swing and chess table.

Mowing and snow clearance in city parks in the future be handled with two mower/snow-broom combination units, if the council approves the purchase from Spartan Distributors for $101,000.

Three land-use items that were recommended for action by the city planning commission appear on the council’s May 5 agenda.

First, the council will consider giving initial approval to a change in the city’s zoning ordinance related to drive-thrus. In addition to providing a definition, the ordinance revision would require drive-thrus to obtain special exception use permits, which would be allowed only in the O (office), C2B (business service) and C3 (fringe commercial) zoning districts. Drive-thrus would not be allowed in the C1, D1, D2, and other commercial districts. Currently, drive-thrus are allowed in C3 districts without a special exception use. They are allowed as special exception uses in the C2B district.

Second, the council will consider giving initial approval to a rezoning request and area plan for 515 Oxford, to convert a house for use as an annex to the Delta Gamma sorority. The main sorority house is located nearby at 626 Oxford. The request, supported by the city’s planning staff, is to rezone the parcel from R4A (multi-family dwelling) to R2B (two-family dwelling and student housing).

And third, the council will consider final approval for the rezoning of land that’s been donated to the city by developer Bill Martin, founder of First Martin Corp. The 2.2-acre parcel at 3301 Traverwood Drive is being added to the adjacent Stapp Nature Area, near the Leslie Park golf course.

Sidewalks are again on the agenda in the form of a public hearing on the proposed Newport Road special assessment, which is supposed to help fund a stretch of sidewalk north of Wines Elementary School. And the council will consider the acceptance of an easement for a sidewalk at 2300 Traverwood Drive.

The council will also consider a routine item this time of year – transferring delinquent water utility, board-up, clean-up, vacant property inspection, housing inspection fees, and fire inspection invoices to the city tax roll for July 2014. The council will also be asked to approve the denial of claims against the city by the board of insurance administration.

Management of the deer population will receive some attention in the form a resolution on the May 5 agenda that directs the city administrator to partner with other organizations to develop strategies for deer management. The administrator will be asked to report back to the city council by July 31, 2014 on the status of the partnership, including budget and timelines. The resolution, put forward by Jane Lumm (Ward 2), states that the desired outcome is a community-endorsed deer management plan.

Appointments to the city’s environmental commission (EC) are on the May 5 agenda, having been postponed at the council’s April 21 meeting. All three that appeared on the April 21 agenda were re-appointments for currently serving members of the EC: Kirk Westphal, David Stead, and Susan Hutton. However, the intention at the May 5 meeting is to substitute the original resolution with one that does not include Stead.

Street closings on the agenda include: East Washington for the Ann Arbor Book Festival on June 21; East Liberty for Sonic Lunch on Aug. 21; and several neighborhood streets for the 2014 Glacier Area Homeowners Association Annual Memorial Day Parade on May 26.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m. [Full Story]

Fifth & Huron

City of Ann Arbor chief financial officer Tom Crawford delivers FY 2015 budget books (three-ring binders) to mailboxes of city councilmembers. City administrator Steve Powers will be making his budget presentation to the council at tonight’s meeting, which starts at 7 p.m. [photo] [For a preview of the budget, see "FY 2015 Budget Preview: Cops, Trees"]

FY 2015 Budget Preview: Cops, Trees

Ann Arbor city administrator Steve Powers’ proposed general fund budget for fiscal year 2015, which starts on July 1, 2014, will approach $100 million.

Left: Stumps (black) and vacant sites (gray). Right: Maples (purple), Crabapples (red) and oaks (blue).  Maps by The Chronicle from the city's 2009 tree inventory.

Left: Stumps (black) and vacant sites (gray). Right: Maples (purple), Crabapples (red) and oaks (blue). Maps by The Chronicle from the city’s 2009 tree inventory. The city administrator’s proposed FY 2015 budget includes a one-time $1 million expense to address the backlog in pruning and removal of trees that are dead or in poor condition.

Funded as part of the FY 2015 budget are five new full-time employees, four of them in public safety: one additional firefighter; three additional police officers; and an additional rental housing inspection position. The additional positions were all presented as possibilities at a Feb. 10 city council work session. The additional police positions will bring the total number of sworn officers in the city of Ann Arbor to 122.

Not previewed as a possibility at that February work session is a one-time expense of $1 million to address a backlog in critical pruning and removal of trees that are in the public right of way. The allocation comes in the context of the development of an urban forestry management plan.

The $1 million one-time expense for street trees brings the total of non-recurring expenses in the FY 2015 general fund budget to about $2.8 million. Other one-time expenses budgeted for FY 2015 are: $80,000 to cover transitional costs for art administration; $606,000 for repairs and maintenance of the city’s hydroelectric dams; $100,000 for consultants to assist with completing the downtown zoning amendments and sign inventory; $300,000 for demolition of city-owned buildings at 415 W. Washington; $200,000 for a corridor studies; and $209,000 in operational support for the Ann Arbor Housing Commission’s (AAHC) transition to a rental assistance demonstration program.

The housing commission also accounts for the bulk of a $13.8 million (17%) increase in general fund recurring expenditures compared to last year. That’s due to an accounting change that recognizes 22 AAHC employees as city employees. By recognizing revenue and expenses for AAHC employee compensation through the general fund, the AAHC can avoid the negative impact of a new accounting rule. The GASB 68 rule requires unfunded pension fund liabilities to be recorded in the financial statements for proprietary funds (like the AAHC) but not for governmental funds like the general fund.

Also included in the FY 2015 budget proposal is about $3,000 for a pilot program for closed captioning of public meeting broadcasts on the Community Television Network. According to city of Ann Arbor communications manager Lisa Wondrash, the cable commission meeting recommended approval of the money at its Feb. 25 meeting, and she notified the commission on disability issues about the pilot on April 16. The pilot will begin with meetings of the city’s commission on disability issues, with a goal of testing out a closed captioning system in July this year.

The $98.1 million of general fund expenditures in FY 2015 will include $95.3 million in recurring expenditures and $2.8 million in one-time expenses.

When the general fund is added in with the rest of the city’s budget – the street fund, water fund, sewer fund, parking fund, and the like – the total expenses proposed for FY 2015 come to $334,434,101.

Powers will present the proposed budget to the city council at its April 21 meeting, the second meeting this month. The council will need to adopt the budget, with any changes, at its May 19 meeting, also the second meeting of the month. That timeframe is specified in the city charter.

The Chronicle sat down with Powers and city CFO Tom Crawford for a conversation about the FY 2015 budget. That conversation is presented here as a Q&A. Within the context of the budget, other issues discussed include state funding, long-term planning, affordable housing, animal control, and fund balance policy. [.pdf of April 21, 2014 pre-dated memo from Powers to city council] [Full Story]

DDA Budgets for Transit, Housing, Parking

Ann Arbor Downtown Development Authority board meeting (March 5, 2014): Three main business items were approved by the board: submission of its FY 2015 budget to the city council, award of a $50,000 management incentive to its parking management contractor, and a resolution pledging to maintain or increase DDA funding of transportation programs, if the May 6, 2014 AAATA transit millage is approved by voters.

Roger Hewitt, Ann Arbor Downtown Development Authority

Roger Hewitt, DDA board treasurer. (Photos by the writer.)

The proposed budget shows $19.3 million in revenues from the public parking system and $4.8 million in tax increment finance capture. Overall, it shows $24,237,186 in revenues against $26,531,972 in expenses. The use of fund balance to cover the difference leaves the DDA with an estimated fund balance at the end of FY 2015 of about $3.3 million. FY 2015 runs from July 1, 2014 through June 30, 2015. [FY 2015 DDA budget breakdown]

The expenses include $353,344 in salaries and $245,894 in fringe benefits for four staff members, $7,075,571 in payments to Republic Parking for management of the public parking system, and $2.1 million for parking facility maintenance. Accounting for $3.19 million of the expenses is a payment made to the city of Ann Arbor, equal to 17% of the gross revenues to the public parking system.

Included in the budget is a $200,000 grant to the Ann Arbor Housing Commission – as part of a $600,000 request from AAHAC to support improvements to Baker Commons and Miller Manor.

The budget also includes $676,000 for support of the getDowntown program. The board also approved a resolution that pledged to work toward maintaining or increasing the DDA’s support for transportation programs. That resolution came in the context of an approaching May 6, 2014 transit millage ballot question. The 0.7 mill tax was placed on a May 6 ballot by the Ann Arbor Area Transportation Authority board on Feb. 20, 2014. The tax would be levied by the AAATA only if it wins a majority of support among voters across its three member jurisdictions: the city of Ann Arbor, the city of Ypsilanti and Ypsilanti Township. The DDA board resolution came in part as a response to the fact that the DDA will be capturing a portion of the new millage under its tax increment finance (TIF) funding mechanism.

The board also approved the award to Republic Parking of the full $50,000 annual discretionary management incentive. Republic Parking’s contract with the Ann Arbor DDA covers just actual costs, but also includes a $200,000 annual management fee. Of the $200,000 management fee, $50,000 is awarded to Republic on a discretionary basis. It was last year, at the board’s March 6, 2013 meeting, when the DDA board decided for the first time in five years to award the full $50,000 of the incentive. The year before, at its Feb. 1, 2012 meeting, the board determined to award $45,000 of the discretionary amount. That matched the same figure awarded in 2011, 2010 and 2009.

The board also heard the usual range of reports from committees as well as public commentary. A highlight of announcements included the upcoming closure of the surface parking facility at the old Y lot, as the city-owned property is sold to hotelier Dennis Dahlmann. The closing is expected sometime between March 13-15. The lot is located on William Street between Fourth and Fifth avenues, across from the downtown library and south of the Blake Transit Center. [Full Story]

DDA Submits FY 2015 Budget to City

The Ann Arbor Downtown Development Authority board has voted to submit its budget for fiscal year 2015 to the city of Ann Arbor. DDA board action came at the board’s March 5, 2014 meeting.

The budget shows $19.3 million in revenues from the public parking system and $4.8 million in tax increment finance capture. Overall, it shows $24,237,186 in revenues against $26,531,972 in expenses. The use of fund balance to cover the difference leaves the DDA with an estimated fund balance at the end of FY 2015 of about $3.3 million. FY 2015 runs from July 1, 2014 through June 30, 2015. [FY 2015 DDA budget breakdown]

The expense include $353,344 in salaries and $245,894 in fringe benefits for four staff members, … [Full Story]