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Burton DDA debates budget calendar, TIF and investment of $295,000 fund balance
Summary
Members discussed budget timing for the 2025 fiscal year, the possibility of exploring tax increment financing, and options to invest about $295,000 in the fund balance to earn higher returns; no formal budget vote was recorded.
Board members discussed the DDA’s budget timeline, possible tax increment financing (TIF) strategies and whether to reallocate the DDA fund balance to earn higher interest at the authority’s January 2025 meeting.
Katie, city staff, told the board the DDA’s April meeting will fall in mid-April and that the board historically held a public hearing in April; she said she would verify exact controller timelines and follow up at the February meeting. Board members emphasized that the full city budget must be adopted before the July 1 fiscal year start and that early submission helps administration coordinate entries into the city’s budget.
Mr. Henry urged the board to consider TIF as a way to fund larger projects in the corridor, noting it as an option for future planning. Several members discussed the DDA’s fund balance and returns: one member said the DDA currently holds “what, like, $295,000 in fund balance” and suggested exploring capital-fund placements or other allowed investments to earn better interest than a checking account.
Members cautioned that changes to investment strategy involve trade-offs—liquidity, withdrawal penalties and administrative constraints—and said the controller and treasurer would need to advise on permissible investments. The board asked a member to follow up with the controller’s office before the next meeting and to present options for moving money into a capital improvement or other allowable investment vehicle.
Staff also flagged a Michigan DDA Association spring workshop in Lansing on March 5 with a $175 registration fee; Katie said a virtual option is available at the same price and offered to circulate registration details to the board. Board members indicated attendance costs could come from the DDA budget if members choose to participate.
