Fenton Receives $400,000 in Funding from DDA
Revenue sharing agreement is up $70,000 from fiscal year 2011.
After a public hearing, Fenton City Council is adding $400,000 to the city's general fund, from the Downtown Development Authority (DDA). It's a $70,000 increase in the amount the DDA contributed last year, said Assistant City Manager/DDA Director Michael Burns.
Since 2004, the DDA and Local Development Finance Authority (LDFA) have made agreements with council to provide revenue sharing. The DDA, until the 2012 fiscal year, has contributed $300,000 to $330,000 annually, Burns said.
The DDA's board reviewed the agreement and approved its portion of it in May. Burns recommended that council approve its part of the formal agreement.
"Due to the current fiscal situation of the city of Fenton's general fund, this revenue share by the Downtown Development Authority will be of tremendous benefit to the city," he stated in a June 24 memo to City Manager Lynn Markland. "The general fund continues to see major reductions. The city has reduced expenditures, made significant changes to employee benefits and is changing the way we operate in order to adapt to the revenue losses we have endured.
"However, while major cuts have been made and the overall way the city operates has changed, the revenue sharing that the city receives from both the DDA and Local Development Finance Authority is vital."
Council unanimously approved the revenue sharing agreement with the DDA, 7-0.
No one spoke during the public hearing.