Battle Creek Downtown Development Authority 2013/2014 Budget Analysis

Revenue: BCDDA tax increment property tax revenue breaks down as follows with prior year

comparative amounts:

Taxes Captured School Operating/SET $ City $

FY 13/14 Budgeted 3,276,761 2,004,194 5,280,955 $ $

FY 12/13 Budgeted 3,357,295 2,075,619 5,432,915

A projected $151,960 decrease in property tax revenue for next year results from a decline in commercial and industrial property values in the district. Interest earnings is based on fund balance and expected rates of return. Rent revenue is the $300 monthly amount for the VOCES lease. Expenditures

Debt service is to be paid on the 2013 Pipeline Bonds (anticipated to be issued in early summer 2013).
This bond issue was originally issued in 1994 to fund several projects within the district including Full Blast and the Emmett Street overpass on the east end of the City. The 2008 Justice Center refunding bond issue which represented the DDA's portion of debt used to construct the Justice Center was paid off in 2012. The DDA portion of the Capital Improvement Bonds to be issued in 2013 is estimated to be $240,000 for the year ending 6/30/14.

Administration: Represents costs for audit and legal services as well as a small amount for building
maintenance. Central Business District Maintenance and Preservation represents personnel and equipment charges for maintaining and preserving the newly revitalized downtown including sweeping, snow removal from streets and sidewalks, and in kind support for festivals and events.

Kellogg Arena Support provides an operational subsidy to the Cereal City Development Corporation
(CCDC) for management of the Kellogg Arena. This subsidy has been provided since the early 1990's and has varied in amount over the past 15 years. For FY 2014, CCDC has requested $300,000 to meet its cash flow needs in operating the Kellogg Arena.

Downtown Business Partnership/BCU provides funding for downtown development activities based on
a contract for services. Funding for next fiscal year is proposed remain the same as the current fiscal year.

BATTLE CREEK DOWNTOWN DEVELOPMENT AUTHORITY Fiscal Year 2013-2014 Budget

FY 12-13 FY 11-12 Actual GENERAL FUND REVENUES: Tax Increment Revenue Prior Year Revenue Interest earnings Other TOTAL REVENUES EXPENDITURES: Debt Service. 2013 Bonds - Pipeline Refunding 2008 BCBA (Justice Complex) Ref 2013 Capital Improvement Bonds Total Debt Service Administration CBD maintenance CBD preservation Kellogg Arena support Downtown Business Partnership/BCU (Note 1) Capital Outlay Total Operating Expenditures TOTAL EXPENDITURES Other Financing Sources - Transfers In Other Financing Uses - Transfer to Capital Project Fund EXCESS REVENUES OVER (UNDER) OPER. EXPENDITURES Fund Balance, beginning of year Fund Balance, end of year $ (889,012) $ 3,378,795
$ 2,489,783 $ 5,746,889 $ 5,432,915 $ 5,372,121 $ 5280,955 -

Proposed FY 12-13 Estimated FY 13-14 Budget

Amended Budget

(132,475) 140,154 3,600 5,758,168

525,238 170,000 3,500 6,131,653

441,227 80,000 3,600 5,896,948

100,000 3,600 5,384,555

Term 2022 2012 2033 5,006,725 479,174

-

5,608,250

5608,250

3,276,986 240,000 3516,986 15,000 722,569 100,000 300,000 430,000

-

5,485,899 7,535 663,193 75,763 100,000 430,000

-

5,608,250 14,237 547,573

-

5,608,250 19,763 667,608

-

161,500 430,000
-

161,284 430,000
-

1,276,491 6,762,390 115,210

-

1,153,310 6,761,560 564,306 (100,000)

1,278,655 6,886,905 564,306 (100,000)

1,567,569 5,084,555
-

(300,000)

(165,601) $ 2,489,783

(525,651) $ 2,489783

1,964,132
$ 1,964,132

$ 2,324,182

$ 1,964,132

Note 1: Funding subject to execution of a contract for services.

CAPITAL PROJECTS FUND REVENUES: Other Financing Sources - Transfers In EXPENDITURES: Capital Projects EXCESS REVENUES OVER (UNDER) OPER. EXPENDITURES Fund Balance, beginning of year Fund Balance, end of year $ (1,997) (100,000) (100,000) (300,000) 100,000 100,000 300,000

(1,997) $ 42,154 40,157 $

- $ 40,157 40,157 $

- $ 40,157 40,157 $ 40,157 40,157