Dearborn Heights TIFA previews $4.27 million budget, highlights fire station and park projects

Tom Roscoe, the CEO of the Dearborn Heights Tax Increment Finance Authority, told the City Council at a special study session on Oct. 12 that the authority's proposed budget for the coming year anticipates about $3.4 million in TIF capture and totals roughly $4.27 million.

The budget presentation focused on routine bond obligations, capital projects and targeted grants for the TIFA district, and flagged a newly discovered $2.4 million transfer identified in the draft audit.

Nut graf: The TIFA budget covers annual bond payments that the authority pays on behalf of the city, targeted projects within the TIFA district and a small commercial grant program. Roscoe said an unexpected increase in property valuation tied to utility upgrades produced a larger-than-anticipated capture this year, giving the authority more available funds and prompting proposals for a second-floor expansion at the South End fire station, tennis-court repairs at Daily Park and a $900,000 sewer set-aside for the next year.

Roscoe said, "It was established in Dearborn Heights in 1986 under state act, which allowed cities to establish a tax increment finance authority district, which, in essence is allowed to capture a portion of the property taxes that would otherwise be sent elsewhere." He described the authority's primary obligations as paying the Justice Center bonds and 42.4% of the JFK Library bond each year.

Key numbers and changes

- Proposed TIF capture (revenue): $3.4 million, Roscoe said; the budget total presented was about $4.27 million. - Fund-balance appropriation: just under $800,000 pledged to help cover revenue for the year. - Justice Center bond: Roscoe said the outstanding balance is about $8 million and that the bond continues to be paid from TIFA revenues; the transcript records a maturity reference spoken as "02/1933," which is unclear in the record. - Court-related revenue: Roscoe estimated court-ticket revenue for bond reimbursement at about $75,000 (an estimate he described as uncertain). - Audit discovery: Roscoe reported the authority's draft audit showed a previously untransferred capture of about $2.4 million that had not been moved from the city tax account and said the money has since been transferred.

Project allocations and programs

Roscoe reviewed proposed allocations within the budget packet the council received. Among the items he detailed:

- Westwood Schools: allocation reduced from $200,000 in a prior year to $50,000 for the coming year; Roscoe said the larger prior allocation paid for a gym floor replacement at Robichaud. - Fire station improvements: Roscoe proposed setting aside $800,000 for a second-floor addition at the South End Station (Station No. 1) to address space constraints and a failing roof. He said engineers recommended seeking grants to cover remaining costs and that an engineering firm is lined up to draft designs once the council gives direction on a related North End station project. - Commercial rehab program: a matching grant program for businesses in the TIFA district, with a standard match up to $5,000 and occasional larger awards (Roscoe said the board has granted up to $10,000 on some occasions). - Daily Park: funds set aside for repairs to the park's courts; Roscoe said staff are discussing whether to convert half the courts to pickleball during repairs. - Right-of-way and road repairs: a modest set-aside, including at least $50,000 for road repairs in commercial areas. - DPW improvements: money for a break room and work to address a developing sinkhole and damaged drainage grates at the department's facility. - Tree trimming: ongoing maintenance with a goal of a five-year cycle across the district. - Ordinance officer: the budget includes the salary for a full-time TIFA-focused ordinance officer, identified in the session as Elizabeth Bunker; Roscoe said the administration would cover benefits if TIFA covers salary. - Sewer project: continued support for a combined sewer project, with about $900,000 set aside for next year. - Contingency: $100,000.

Questions and public comment

Council members asked for clarifications on several items, including how court-ticket revenue is assigned and whether money reserved for roof repairs could be reallocated to an expansion. Roscoe said the lease agreement between TIFA and the city makes the city responsible for some maintenance decisions and that TIFA must treat some expenditures as capital improvements rather than repairs.

In public comment, Rachel Lapointe of Merrick Street praised recent park upgrades and urged caution before converting tennis courts to pickleball, saying, "That park is amazing" and "I've heard it can be very noisy to neighbors."

Next steps

Roscoe said the TIFA board approves its budget in March and then submits it to the council for concurrence; the study session was intended to surface questions ahead of formal consideration. He also said the authority will explore grants to supplement the $800,000 set-aside for the South End fire station and that engineering work could begin once the council directs action on the related North End station project.

The study session closed and the council opened the meeting to public comment.