DDA projects five–year budget numbers at retreat

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By Nick Nunn staff writer

The Downtown Development Authority of Madison held its annual retreat and planning session last Thursday, March 6. At the meeting, the members looked at a working budget for the next five fiscal years, which showed that the authority will net approximately $40,000 over the next five years. The anticipated expenses for the DDA in the fiscal year 2015 will be approximately $182,000, while their revenue will be $201,000 for the year, resulting in a net gain of more than $18,000 for fiscal year 2015.

The budget shows that the DDA will suffer a loss of $1,900 during fiscal year 2016 before earning more than $1,800 in fiscal year 2017 and approximately $20,000 in fiscal year 2018. The DDA’s revenue for the coming fiscal year will be made up of $125,000 from their city service contract, $50,000 in property sales, and $26,000 in rental payments from Star Drug, the Gilmore House, and the Gilmore Store.

According to the working budget, the DDA’s basic operation and downtown development area expenses will hold steady at $24,000 and $40,000, respectively, for the next five years, while their urban renewal area expenses will fluctuate from a high of more than $235,000 to a low of less than $32,000 as they begin to pay of current debt services on properties.

The working budget shows that the revenue from the city service contract will hold steady at $125,000 over the five-year period, and that the DDA’s revenue from rental properties will increase from $26,000 to $28,750.

The budget only predicts amounts for revenue from sales for the two years following fiscal year 2015: $115,000 for fiscal year 2016 and $40,000 for fiscal year 2017. Madison Planning Director Monica Callahan told the DDA members that the budget was meant to show them a “big picture” look at the authority’s finances over the next five years.

The DDA also looked at their net assets, which stand at more than $620,000. Since the 2013 tax digest, the value of the DDA’s property holdings increased from approximately $1,095,000 to the 2014 value of more than $1,495,000. The value of the property is offset by the DDA’s total debt of about $875,000 to create the net worth of $620,000.

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