DDA OKs 2013 Budget with $2M Deficit

At its March 7, 2012 meeting, the Ann Arbor Downtown Development Authority board unanimously approved its fiscal year 2013 budget. Across all funds, it shows anticipated expenses revenues of $22,097,956 against $24,101,692 in expenditures – for an excess of expenditures over revenues of $2,003,736. The difference will be covered from the existing fund balance.

The shortfall was planned. It’s in the context of construction of a new underground parking structure on Fifth Avenue, and a new contract with the city of Ann Arbor, ratified in May of 2011, under which the DDA manages the city’s public parking system. That contract pays the city of Ann Arbor 17% of gross revenues from the parking system, which are budgeted in FY 2103 at $18.1 million. The 17% translates to a ballpark figure of $3 million.

Factoring in coverage of this year’s (FY 2012) $1.675 million use of fund balance and FY 2013′s planned use of $2 million, the DDA will have a total fund balance of $4.38 million at the end of FY 2013, or an amount equal to about 18.2% of expenses. [.pdf of FY 2013 budget]

This brief was filed from the DDA offices at 150 S. Fifth Ave., Suite 301 where the board holds its meetings. A more detailed report will follow: [link]