Title
RESOLUTION TO APPROVE DDA CIP SCHEDULES
Memorandum
Background: The City of Ann Arbor Capital Improvements Plan <https://www.a2gov.org/departments/systems-planning/Pages/Capital-Improvement-Planning.aspx> (CIP) outlines public project expenditures for a six-year period and is approved annually by the City Planning Commission. It does not address all capital expenditures for the City, but includes infrastructure projects over $100,000 and studies that will inform infrastructure improvements over $50,000. In 2013, City ordinance was modified to require the DDA to include its capital projects and budgets in the City CIP. The CIP is updated annually - in even years, a full six-year capital plan is created and in odd years, the upcoming two years are reviewed and adjusted. This year is a full planning year, focused on projects planned for 2026-2031.
DDA projects funded by Tax Increment Financing (TIF) are typically partnership efforts with City departments or other public agencies. As a result, the timing and funding of those projects is aligned and adjusted in partnership. Due to the nature of parking facilities and the DDA’s obligation to maintain them, Parking-funded projects are regularly stand-alone.
TIF-funded Project Changes: The DDA Development Plan effort underway will guide our work for the next thirty years. Capital projects are an important plan component, informed by Comprehensive Plan Values, DDA-Board established goals, and community engagement. Until that work is complete staff are not recommending new project additions. The recommended 2026-2031 schedule is focused on continuing commitments to partnership projects; scope and timing changes relate to changes in the larger project scope.
Staff are recommending the most significant changes to the Miller Avenue Bikeway Extension and Ann Street Project - a $1.25M decrease and an $800K increase, respectively. Miller Ave cost reductions create capacity to fund increased Ann Street improvements without affecting fund balance or other project commitments. Combined, the two changes result in a net decrease in planned capital expenditures.
Parking-funded Project Changes: Expenditures in the structure restoration line are based on information from the most recent parking structure 20-year maintenance plan and take into account progress on current and/or previously deferred work. Other updates are based on capital planning work related to elevators and equipment. These modifications have been made in alignment with the DDA 10-year financial plan.
Following coordination with City staff and partner agencies, DDA staff recommend Board support for the attached DDA CIP schedule.
Body
Whereas, Preparation of the Capital Improvements Plan is done under the authority of the Michigan Planning Enabling Act (Act 33 of the Public Acts of 2008);
Whereas, Ann Arbor code Chapter 7, Ord. No. 13-28, § 3 requires that the DDA submit their capital projects for inclusion in the City’s Capital Improvement Plan (CIP);
Whereas, Upon adoption by the City Planning Commission, the CIP becomes a tool to implement the City’s comprehensive plan; and the CIP is also used as the source document for the DDA’s capital budget planning as well as City’s capital budget planning;
Whereas, The DDA’s capital projects reflect the DDA Renewal Plan values and People-Friendly Streets 2 recommendations; and inclusion in the City CIP process ensures coordination with the City;
Whereas, Staff has proposed a 2026-2031 CIP schedule based on new information including costs and timing;
Whereas, The proposed schedule has been reviewed against the DDA’s ten-year plan, and near term years conform with DDA Fund Balance Policy;
RESOLVED, The DDA Board approves the attached DDA CIP schedule and authorize staff to put it forward for inclusion in the City’s CIP.
Prepared by: Amber Miller, DDA Capital Projects and Planning Manager and Jada Hahlbrock, DDA Parking Manager