DDA approves budget adjustments for TIF captures, reduced city contribution

THREE RIVERS — Three Rivers’ Downtown Development Authority will begin the fiscal year with a projected $799 net loss it hopes to fill in its budget after a budget adjustment was approved by its board Thursday.

The adjustment includes a couple of notable items that were brought up during the DDA’s last meeting in June, including a $24,561 increase in anticipated Tax Increment Funding (TIF) capture amounts, a 50 percent decrease in the city’s expected contribution to the agency, and an $1,800 increase in office lease spending approved at the last meeting.

With the adjustment, it brings the DDA’s total projected revenues for fiscal year 2023 to $166,785 and projected expenditures for the year to $167,584, with expenses over revenues of $799.

DDA Board Treasurer Tim Raakman called the $799 a “plug number” needed to balance their budget, a number they’d have to get through fundraising efforts throughout the year. He also re-explained the reasoning for the massive TIF increase.

“There’s a big increase because it was a mistake that Cathy [Lawson, City Finance Director] made,” Raakman said. “It was thought to be $70,000 and now it’s $95,000. And again, it’s an estimate.”

A couple other line items in the budget adjustment were also discussed, including the DDA’s debt service line, listed under operating expenditures at $64,182. Raakman explained the debt service is from a number of projects over the years, including the east parking lot and the Mural Mall. In the next couple years, however, Raakman says the debt service terms will expire on those projects, giving the agency a bit more room to work with in their budget.

The budget adjustment was approved unanimously, 4-0. City Manager and board member Joe Bippus, board chair Andrew George, and board member Rick Cordes were not in attendance.

In other business…

  • The board discussed upcoming maintenance on the east parking lot stone walkway. DDA Director Cameron Mains said Bippus told him it’s work that needs to be done due to chipping in certain places of the walkway, and that the city would do the work with the DDA being responsible for upkeep.
  • The board discussed filling out a form with Beacon Health System to apply for a charitable donation. Mains said originally, Beacon pledged $1,000, but didn’t send a check due to a “transfer of leadership,” and sent an application so that the money can be pledged.
  • In his director’s report, Mains said all furniture items for the vibrancy grant project in the Mural Mall is in, but that there was a delay in the painting process. He added that a new estimate for wall prep for the painting project is $3,300.

Robert Tomlinson can be reached at 279-7488 ext. 22 or robert@threeriversnews.com.

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