Walled Lake council changes DDA budget plan

The Walled Lake City Council has approved the Downtown Development Authority’s (DDA) 2011 budget proposal that calls for drawing dollars from the fund balance to offset expenditures.

Adjustments were made at the May 26 council meeting to bring the budget into conformity with what the DDA board initially approved. A series of expenditures needed to be corrected, including: a $300 line item from the organizational committee; $300 from the design committee; $2,400 from the promotions committee and $1,200 from economic restructuring.

“The figures weren’t translated correctly after the DDA sent them to the City Council — they were transposed differently,” said DDA Finance Chairman John Marshall.

The approved proposal was expected to go back to the DDA board for adoption yesterday, Tuesday, June 14.

Total revenues for the DDA are proposed at $857,718, of which $675,000 is gained through property taxes via Tax Increment Financing (TIF), which is often referred to as “capturing” tax revenue ordinarily destine for other taxing units. For example, if the base year total taxable value of property in the DDA district is $1 million, and the second year it’s $1.25 million, the DDA is permitted to “capture” the property tax revenue collected on the increase in total taxable property value of $250,000 to pay for DDA projects. Some other taxing units would receive only the tax revenue on the initial $1 million in taxable value.

Total expenditures for 2011 are estimated at $857,718. The three main expenditures include $198,138 for reimbursement of police services; $91,605 for DPW services; and $115,000 in city improvements (including $80,000 for streetscape enhancements, $30,000 in facade grants, and $5,000 for improvements at the Foster Farm House.)