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Lapeer DDA committee approves FY2026 budget and director compensation package
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Summary
The Lapeer Downtown Development Authority Executive Committee approved a proposed FY2026 operating budget and an amended compensation package for the DDA director that includes a 5% raise and a one-time $5,200 bonus to set up a retirement account; city-commission approval is required for final implementation.
The Lapeer Downtown Development Authority Executive Committee on April 1 approved a FY2026 operating budget and an amended compensation package for the DDA director that raises base pay by 5% and adds a one-time $5,200 bonus intended to start a retirement account.
Chair (speaker 3) introduced the compensation proposal, saying the committee set a salary line of $61,588.80 after reviewing peer DDAs in Michigan and noting the director had not received an increase in 2025. The package retains three weeks of paid time off and continued insurance coverage. The committee settled on a one-time $5,200 bonus "to be used to start the retirement account" rather than committing to an ongoing employer retirement match while staff research the mechanics and budget implications.
Speaker 6 raised transparency concerns and asked whether the written justifications and comparative salary spreadsheets would be made public; the chair said the materials were available and offered to circulate the supporting spreadsheet to board members. Committee members discussed whether the $5,200 employer contribution would be recurring; members favored researching an employer-sponsored plan and agreed the bonus allowed the director to open an IRA immediately while the board evaluates long-term options.
On the budget, staff (Speaker 1) presented revenue estimates including $224,000 in DDA tax capture for the coming fiscal year, $6,000 in interest income and an anticipated $25,000 in grant match revenue (contingent on securing grants). Special events revenue was budgeted at $35,000, up from roughly $15,000 the prior year. Proposed expenses include a salary and wages line of $81,552 (reflecting the director compensation proposal) and contractual services of $44,161, which covers the assistant director and a new website contract.
Speaker 1 said the DDA's fund balance had grown to about 75% of its total budget and recommended spending down reserves to support downtown projects consistent with state DDA practice; the packet showed estimated revenues of $407,000 against expenses of $418,845 for FY2026.
Speaker 2 moved to approve the budget as presented and the committee passed the budget by voice vote. The chair noted the package and budget will be submitted to the city commission for final approval and that changes would be effective July 1 if the city concurs.
The committee approved the compensation amendment (moved by "Mister Byers," supported by "Miss Gillingham") by voice vote; no roll-call tallies were recorded in the transcript.
Next steps: staff will circulate supporting salary-comparison materials and follow up with the city payroll/accountant to determine how an employer retirement contribution could be administered and whether future employer contributions are feasible within the DDA's budget.
