Understanding DDA Finances in Coopersville

Over the past week, questions have been raised in the community about how Coopersville's Downtown Development Authority (DDA) collects, manages, and spends its tax revenues. Some residents have expressed concern about where the money goes, how much is available, and whether it's being handled in a transparent and appropriate way. I’ve put this together to share what I’ve learned about how the DDA’s finances are structured and managed. 

How Do Other Cities & the State Handle DDA Finances?

You may be wondering if Coopersville’s processes are typical. Many small Michigan cities—like Zeeland, Allegan, and Plainwell—use the same structure:

• They track DDA revenues in a restricted fund,

• They reimburse shared services to the city’s general fund, and

• They sometimes set a cap on annual TIF capture to balance priorities.

While not every city caps its DDA capture, doing so—like our $400k cap—is a conservative and transparent way to balance downtown investment with city-wide needs.

The Michigan Department of Treasury’s Local Government Accounting Procedures Manual, a statewide resource, provides specific guidance on TIF district accounting. Notably:

• DDAs must follow uniform chart of accounts,

• Must submit annual financial reports to the State Tax Commission, and

• Are subject to state oversight under the Uniform Budgeting and Accounting Act.

These requirements ensure consistency, compliance, and public accountability across all Michigan municipal DDA programs.

For more information, see: Treasury Local Government Services 

What is the DDA and Where Does its Money Come From?

Coopersville’s DDA is a public entity created under Michigan’s Public Act 57 of 2018. Its primary purpose is to encourage economic development and investment in designated downtown and commercial areas.

The DDA receives funding through Tax Increment Financing (TIF). This means that as property values increase within the DDA district, the additional tax revenue from that increase (the "increment") is captured by the DDA instead of going to the City’s General Fund. These funds are restricted and must be spent on improvements or services within the DDA district boundaries.

It’s important to note that the total annual amount the DDA can retain through TIF is currently capped at $400,000. This cap is set by City Council as a way to balance reinvestment in the downtown with maintaining tax revenue for citywide services and infrastructure. While TIF revenue may exceed that amount in a given year, anything above the cap is returned to the General Fund or other taxing authorities.

According to the DDA Bylaws, the board governs how those funds are used, and a budget is adopted annually, subject to City Council approval.

For more information, see: Public Act 57 of 2018 

Is the DDA Money Being Deposited in the General Fund?

No. Based on city records, DDA funds are deposited and managed in a separate special revenue fund: Fund 248 (the DDA’s dedicated fund) .

You can see this clearly in the city’s official Quarterly Financial Reports and the adopted 2025–2026 Fiscal Year Budget, where:

• Pages 10–12 outline DDA budgeted items,

• Page 22 contains the detailed financial breakdown of Fund 248.

View the full 2025–2026 City Budget here (PDF)

View the current DDA 2023-2024 annual report here (PDF).

While the DDA fund does reimburse the City for staff support, equipment, refuse services, and other shared costs, this is done through budgeted and documented interfund transfers—a standard and legal practice in Michigan municipalities.

Why is the DDA Fund Balance Only $400,000?

Some residents have asked why, if TIF collections are ongoing, the DDA fund balance is about $400,000. Here’s why:

1. The DDA has a $400,000 cap on the amount it can retain from TIF collections each year. While property values may generate more than that, any amount above the cap is returned to the City’s General Fund or other taxing entities. The $400,000 figure reflects the annual limit on how much the DDA is allowed to retain from TIF collections, not the total amount collected. 

2. The DDA spends most of its available revenue annually, supporting maintenance, events, marketing, refuse collection, and infrastructure improvements.

3. Major projects over the past several years include:

   • The Walkthrough Park,

   • North Parking Lot reconstruction,

   • Pocket Park improvements,

   • Downtown lighting and landscaping.

City Council has the authority to raise or lower the cap on DDA collections. Increasing the cap would allow more investment in downtown projects but would also reduce the share of tax revenue available for citywide services like roads, utilities, and emergency services.

Though the DDA district includes most of Coopersville’s commercial corridor, the vast majority of DDA spending supports just the core downtown block, making the cap a way to balance downtown investment with citywide needs.

It’s also worth noting that any unspent portion of the $400,000 can be rolled over into future years. This allows the DDA to build a reserve to fund larger projects, such as infrastructure improvements, or to offer business grants when appropriate. This rollover flexibility gives the DDA the ability to plan for long-term investments rather than spend its entire budget each year by default.

How is the DDA Budget Approved and Audited?

The DDA’s budget is proposed by its director and staff, approved by the DDA board, and then submitted to City Council for final approval as part of the city’s full budget adoption process.

In addition:

• The City hires an independent third-party auditor annually—currently Brickley DeLong CPAs—to review all financial activity.

• The most recent audit can be found here: 2024 Financial Statement

• The State of Michigan also requires compliance with the Uniform Budgeting and Accounting Act and has the authority to investigate municipal finances if concerns arise. While the State does not routinely audit every municipality, it requires annual financial reporting and oversight through the Michigan Department of Treasury’s Local Government Division.
  Learn more: Michigan Department of Treasury – Local Government Services 

DDA Annual Reports & Transparency

The DDA publishes an annual report and budget each year, including summaries of:

• TIF revenue received,

• Fund balances,

• Completed and upcoming projects,

• Marketing and promotional efforts.

You can find current and past reports here: Coopersville DDA – Annual Reports & TIF Plan

What’s the Difference Between a DDA and a Chamber of Commerce?

Both organizations care about a local economy and downtown vitality, but they are fundamentally different in how they are funded, structured, and what they are legally allowed to do.

Funding: The DDA is funded by public tax revenue through Tax Increment Financing (TIF), while a Chamber of Commerce is supported by private membership dues and sponsorships.

Structure: The DDA is a public governmental entity with an appointed board, whereas a Chamber is a private nonprofit with an independently selected board.

Focus: The DDA focuses on public infrastructure, downtown revitalization, and physical improvements within its district. A Chamber centers on business networking, promoting member businesses, and offering services and support to local entrepreneurs.

Authority: The DDA can own property, apply for grants, and enter contracts related to public development. A Chamber, in contrast, cannot levy taxes or influence zoning decisions—it operates solely through voluntary participation and advocacy.

In short: the DDA is about place-making and infrastructure—things like sidewalks, lighting, trash services, event support, and downtown amenities. A Chamber is about networking, advocacy, and promotion for local businesses.

Currently, Coopersville does not have an active Chamber of Commerce. If citizens or business owners are interested in forming one, they would be welcome to do so. Chambers are typically member-driven organizations and can be valuable partners in advocating for business needs and organizing networking events.

Some residents have suggested that the DDA should "do more to promote businesses." While the DDA does engage in public-facing efforts like branding, wayfinding signage, and events that help attract people downtown (such as Discover Coopersville), its spending must comply with Michigan law—which restricts funds to activities that improve the DDA district itself. Unlike a Chamber, the DDA can’t spend money on general business promotion outside of physical improvements, marketing specific DDA events, or district-wide beautification.

That said, if a Chamber were to form, the DDA could explore partnership opportunities, combining public investment in downtown infrastructure with private support for business development.  

Final Thoughts

There’s no harm in asking tough questions, we should. Transparency and accountability are essential in local government. .

What we can say with confidence is this:

• Coopersville’s DDA follows the legal structure laid out in Michigan law,

• DDA funds are tracked separately and are not deposited into the City’s General Fund,

• Annual budgets and audits are available to the public,

• And City Council retains oversight over how funds are allocated and capped.

If you’d like to learn more, feel free to reach out or explore the links included in this post. The more informed we all are, the better decisions we can make together for Coopersville’s future.

—
Peter Weise
Council Member, City of Coopersville