Title
Report on DDA Financial Information As Requested by Ann Arbor City Council
Memorandum
On February 17, 2009 City Council approved “Resolution Requesting Financial Information from the Downtown Development Authority” which requested that the “DDA provide the City Council, within thirty (30) days, a financial plan to increase revenue and/or defer projects to ensure adequate contingencies and fund balances for fiscal years 2010 and 2011, and that the proposals may include, but are not limited to, (1) prompt implementation of a demand-based pricing system for parking facilities, (2) increases in fees for "bagging" parking meters, and/or (3) deferring scheduled capital projects.”
Per City Council’s request, the DDA Operations Committee extensively reviewed its Ten Year Plan which is updated continuously to include all known revenue and expense items. After much review and discussion, the Committee determined that DDA fund balances are adequate to address programs, administration, and obligations as approved by the DDA for fiscal years 2010 and 2011.
As part of this Ten Year Plan review the Operations Committee also recommitted to its plan to increase on and off street parking rates as of July 1, 2009 as part of an overall parking demand management framework, with the average of these rates as reported to City Council on February 17, 2009. It determined that should the DDA need to increase parking revenues, it has tools available including the following (in recommended order):
´ Increase the daily cost of meter bags $5/day from $15/day to $20/day (anticipated to increase revenues by $181,000/year).
´ Return to charging for parking by one-hour increments rather than 30-minute increments (anticipated to increase revenues by $400,000/year). The change to 30-minute increments was made in 2003.
´ Increase parking rates in high demand areas at high demand times. This could include on-street meters on S. Main, E. Liberty, and S. State Streets, in the May...
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