Ann Arbor Downtown Development Authority board meeting (March 2, 2011): At its regular monthly meeting, the DDA board approved its budget for the next two years – fiscal years 2012 and 2013. The DDA’s fiscal calendar is aligned with the city of Ann Arbor’s, which runs from July 1 to June 30.
DDA board members study the budget proposal they approved at the March 2 meeting. From left to right: Bob Guenzel, Sandi Smith, Russ Collins. Obscured, sitting between Guenzel and Smith, is John Mouat. (Photo by the writer.)
For FY 2012, the DDA is budgeting for $20,118,601 in total revenues – of that amount, $3,893,943 is forecast to come from tax capture, $16,162,752 from parking revenues, and $61,906 from interest earnings. Budgeted expenses, at $20,631,328, will exceed revenues by $512,727.
The board has not yet incorporated into its budget the likely revisions that will be made to the DDA’s contract with the city of Ann Arbor, under which it manages the city’s public parking system. Those contract revisions are expected to result in a total parking-contract-related payment to the city of $2.26 million in FY 2012. The approved DDA budgets for FY 2012 and 2013 include only the roughly $1 million of payments to the city that the DDA is currently obligated to make.
While the DDA expects to be drawing down its fund balances over the next two years – due in large part to the expense of the Fifth Avenue underground parking structure that’s under construction – the longer-range forecast by the DDA shows increases in revenue that are expected to replenish reserves. The DDA estimates that its tax capture revenue will increase from its current level of roughly $3.9 million to $4.7 million by 2020. Parking revenues are also forecast to increase – due in part to the increase in parking space inventory offered by the underground garage, but also due to increases in parking rates – from an estimated $16 million next year to $22 million by 2020.
About the underground parking garage, at the February 2009 board meeting, Russ Collins had said the board needed to keep alert for their next projects after “this pig makes it through the python.” At Wednesday’s meeting, mayor John Hieftje alluded to Collins’ remark in trying to emphasize the long-range projected financial health of the DDA.
In the other business item handled by the board at its Wednesday meeting, Hieftje cast the lone vote of dissent on a vote to approve $45,000 out of $50,000 for a discretionary management incentive that’s part of the DDA’s contract with Republic Parking, which manages day-to-day operations for the city’s parking system.
The board also heard its usual round of committee reports; however, no one addressed the board during either of the opportunities for public comment. Highlights from Ray Detter’s report from the Downtown Citizens Advisory Council included an update on plans for the new Blake Transit Center and a report from the city’s panhandling task force. [Full Story]