Grand Rapids
Michigan

GR Agenda Item

Adoption of FY2020 Budget

Information

Department:Economic Development StaffSponsors:
Category:Budget

Attachments

  1. Item Description
  2. SendSZFY2020Adopt

Content A

Attached is the SmartZone Local Development Finance Authority (LDFA) FY2020 budget.  The FY2020 budget was approved by the SmartZone LFDA and recommended to the City Commission on April 19, 2019, approved by the City Commission on May 14, 2019, and now, returns to the SmartZone LDFA for adoption.

 

 

For FY2019 year-end, revenues are estimated to be greater than the budgeted amount of $1,219,173 at $1,440,207.  This is due to a larger than anticipated Michigan small taxpayer exemption loss reimbursement, higher interest on investments, and the Michigan Strategic Fund business incubator “gateway” grant award.  Expenditures are estimated to be significantly below the budgeted amount of $4,127,398 at $2,408,635.  This is largely due to a $1 million appropriation for a maker space that has not yet come to fruition and a $605,206 contingent fund appropriation that has not yet been allocated to strategic priority initiatives.

 

For FY2020, revenues are anticipated to increase slightly from the FY2019 year-end estimate of $1,440,207 to $1,477,055.  A half percent increase is projected for tax increment revenues, while the amount of the Michigan small taxpayer exemption loss reimbursement is expected to decline.  The appropriation request for FY2020 contains $4,214,180 in expenditures.  Ongoing expenditures are anticipated to be slightly lower than the FY2019 budgeted amount of $255,990 at $251,797.  Anticipated expenditures for strategic priority initiatives include $939,101 for approved projects and services and $2,125,782 for future strategic priority initiatives.  Expenditures subject to Board approval of contracts are also planned for SmartZone operations and tradeshows and marketing.

 

Staff recommend adoption of the FY2020 budget.

 

KLW/em

 

Attachment