Farmington DDA Adjusts Two-Year Budget Plan

Last year, the (DDA) put together a two-year budget and work plan.

During a Saturday morning retreat at the Huron River Hunting & Fishing Club in Farmington, board members reviewed virtually every line of that plan to find $60,000-$70,000 in budget reductions. DDA Director Annette Knowles said she didn't feel comfortable going forward with the previous plan, given current economic conditions.

"We wanted the opportunity to re-examine everything and break it all down," she said.

The DDA operates with two types of funds, and both have restrictions on how the money can be spent. However, funds generated through events – Art on the Grand, the Farmington Area Founders Festival, Farmington Farmers & Artisans Market, Rhythmz in Riley Park, the Harvest Moon celebration and Holly Days – have no restrictions.

While a few of the events were subsidized last year, Knowles said, that won't happen again.

"As of this fiscal year, all of these events will be self-supporting. If there are no sponsorships for them, we will, unfortunately, have to scratch them off the list," she said.

Any "profit" generated from events could go directly into the general fund and could restore some of what board members agreed to cut on Saturday. The board may also create a separate fund that would give each event a cushion in case of bad weather, like the three days of rain during last year's Art on the Grand in June.

Board member Greg Cowley said every event's budget has been trimmed as much as possible, and the board also aims to create another event for 2012. He said the strategy of having income-generating events year-round will give the DDA more funds to retain and recruit businesses.

Three core strategies

Business development is one of the three, previously established "core strategies" Knowles reviewed, to provide a basis for Saturday's discussion; the other two are walkable infrastructure improvements and downtown marketing (events and promotions). Only the $85,000 streetscape debt payment and $100,000 maintenance budget had to remain untouched, she said.

"When we authorized the TIF (Tax Increment Financing district) a year ago, we agreed to take on maintenance as a priority," Knowles explained.

All other areas were open for discussion. Board members elected to cut its facade incentive program by half, to $12,500, because there are currently no applications for the funds. They also reduced $65,000 budgeted for professional services related to parking improvements. While the board will discuss parking at an April workshop, no projects are currently on the table.

Knowles said the board could go back to the city council for approval if those funds are needed.

Snow removal complaints

While they didn't touch the maintenance item, some board members asked that the DDA take a look at privatizing snow removal, because they were not happy with the 's services this season.

"If you go behind the ... there's a mountain out there," said Cowley, whose family's restaurant, , is just west of the theater. "We have 700 parking spots open (throughout downtown). I'd be willing to bet you lose 10 to 20 percent of those due to snow."

Diane Cassidy, who owns and is a former DDA board member, estimated at least 10 parking spaces are lost under piles of snow just in the parking area behind her building. She also had problems keeping the sidewalk clean.

"Out front is the really big problem," Cassidy said, "because we'll clean and the plow will push the snow out there again."

Board member Tom Buck, who is also Farmington's mayor, pointed out snowfall has been heavier than usual this year. And Knowles said the city's first priority is getting the streets cleared.

"They do typically come back and haul the snow out," she said.

Knowles estimated the DDA pays the city $60-65 an hour plus a portion of equipment costs. She pointed out the private contracting can be difficult to manage.

"I suspect we will find out the budget line item is pretty comeptitive for this," Buck said. "I think Vince was trying to be careful about overburdening the DDA ... It's probably worth some type of study."

As for the complaints, Buck said, "If there is some refinement needed, let's do that."

"I don't care where you are in metro Detroit or Michigan, everybody's dealing with the same thing," board member Gerald Wasen said. "I don't think you go in there yelling. You talk about your priorities, and then work together on how this could be done."

As the discussion wound down, board member Dan Higgins took a look out the window. "It's snowing again," he said.

Holiday lighting, flowering baskets

Board members also agreed to reduce holiday lighting costs and will take down all flowering baskets except those at the downtown "gateways." The DDA will hang banners on Farmington Road, because trees on that road have no nearby power source for lighting. The city's Beautification Commission may be approached to take on more flowering baskets; merchants could be asked to maintain those in front of their buildings.

Funds may also be cut from the $50,000 allocated for a market study; Buck suggested the board could pursue alternatives for funding and accomplishing the study.

Knowles said officials from Oakland County's Main Street program commented that market analyses done in the past are no longer relevant. They were based on 2000 Census data, and the 2010 Census is due out next month.

It took just under the three hours allotted for the workshop to finally balance the budget. Officials did not dip into the DDA's $143,000 fund balance, which provides cash for emergencies and unanticipated expenses. Knowles said she would be uncomfortable with it going much below that level.

"The next step is to go back and prepare a budget for our meeting ... in March," Knowles said, adding she will present the budget to city officials in April.