13.5 Million DDA Budget Approved
GRAND RAPIDS — The City Commission approved Tuesday a Downtown Development Authority (DDA) budget of $13.5 million for fiscal 2002, which begins July 1 and ends June 30 next year.
The unrestricted fund portion of the budget is $151,000, the debt increment portion of the budget is approximately $4.7 million, and the local tax increment component of the budget is approximately $8.6 million for fiscal 2002.
Unrestricted funds, made up primarily of parking revenues generated from DDA-owned property, are used for general downtown improvement purposes. The only appropriation in the unrestricted funds budget is $151,000 to finance maintenance equipment for Downtown Improvement District activities.
Debt increment dollars, generated by school-related millages, are used to make payments on the DDA’s outstanding bond issues. Assessed tax increment is expected to generate some $4.4 million and interest on investments will add $281,438 to that portion of the budget. Nearly $1.8 million will be applied to principal payments and some $2.9 million will go to interest on debt and agent fees.
The local tax increment budget consists of revenues generated by properties within the downtown tax increment district, interest on investments and contributions. Assessed tax will contribute $2.4 million and interest on investments $1.2 million to the local tax increment budget.
Resources also include a $2.8 million fund balance transfer, $1 million in contributions for Phase II of Monroe Center, and a $230,660 state grant toward reconstruction of Ionia Avenue from Cherry Street SE to Bartlett Street SE, which will include infrastructure upgrades, road reconstruction and streetscape improvements.
The lion’s share of local tax increment funds, or slightly more than $5.4 million, is earmarked for 13 construction projects already in progress.
An additional $770,000 in project funds are budgeted for district development support, a parking and transportation program, pedestrian streetscape improvements and support for Heartside Park.