Lake Orion DDA board receives information on contracted services

By Megan Kelley

Review Writer

The Lake Orion Downtown Development Authority Board of Directors held a special meeting last week to hear a presentation from the village administrators on the DDA’s contracted services with the village.

In a previous meeting, the DDA board had requested a summary of services provided by the village. Village Manager Joe Young reviewed each department’s expenses, as well as the amount that the DDA is paying for those services.

According to documents provided by the village, the cost breakdown for administration services and insurance, public works services and police services is as follows:

Administrative services and insurance: the actual cost of these services, according to the village, are $83,059. The DDA pays $68,000, for a difference of $15,059.

Public works services: The DDA currently pays $43,200 for these services. According to the village, the actual cost of these services is $89,074, a difference of $45,874.

Police services: The DDA pays $90,000 for police services in the village. The actual cost, according to village documents, is $149,324, for a difference of $59,324. It is important to note that the DDA gives the Lake Orion Police Department back 100 percent of their capture on the department’s millage.

In total, the DDA is paying the village $201,200 for various services throughout the year, while the village claims the actual cost of these services is $321,457.

Concerns were raised, specifically by Orion Twp. Supervisor Chris Barnett, that these numbers were going to make their way over to the village council who, Barnett believes, will then turn to the DDA and want to start charging them more money, which would further push the narrative of the DDA acting as a “piggy bank” for the village.

This concern was only amplified when Young informed the board that the village has roughly $20 million in necessary infrastructure improvments including water main, sewer and road repairs.

Barnett has repeatedly stated in previous meetings that he believes the DDA brings great value to the area and maintained the position during this special meeting, pointing out that most of the services provided to the DDA — such as policing downtown events — would have to be provided whether or not the DDA existed anyway.

“If we didn’t have a DDA, the village would be doing all of these things,” Barnett said.

Young and village council President Ken VanPortfliet ensured the board that this presentation was not intended to provide reasoning behind any possible cost increases for the DDA, just to present what they said are the actual costs of the services the village provides.

But Barnett was confident that it would be the result regardless of intent.

Discussion brewed between board members, Young and DDA Executive Director Molly LaLone about the lack of understanding on what exactly a DDA is, or does, and how that could be resolved.

The DDA board is the first the hear this presentation on the cost of contracted services between the DDA and village. It is expected that the village council will receive this same presentation in the near future.

 

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