BOUNTIFUL — Bountiful City’s Redevelopment Agency tentative budget was approved, last week. And the 2010-2011 document is about 10 percent lower than for fiscal year, which ends June 30.

The proposed budget of $1,991,619 compares with this year’s of $2,232,713.

“The RDA is in good financial shape,” City Planner/RDA official Aric Jensen told the Clipper.

As currently constituted, the RDA will receive its last tax increment check from the Davis County Assessor in 2016.

“We won’t dissolve (as an agency), just operate without a tax increment district unless a new tax area is formed,” he said.

RDAs are created to provide funding incentives for businesses/developers. For example, the Renaissance Towne Centre’s parking terrace was built with assistance from a tax increment district that also includes Willey Ford, the old George West Auto, FirstMed and what is now Gold’s Gym and Wells Fargo Bank.

A bond payment of about $400,000 is made each year on the RTC project, which has about a $2.4 million balance. Jensen said this year a payment of about $390,000 will be generated from taxes associated with the project.

“It’s going down at the programmed rate,” he said.

Other areas assisted by RDA loan funding include the South Davis Recreation Center, which received a $2 million “lump sum” payment in 2007. The balance owed is $770,00.

“We will pay that off well ahead of schedule,” Jensen said.

Loans to REDCON and the Wight House on north Main have been paid off and closed, as well as Gem Smith at The Square. Bountiful Tool, which was awarded a $40,000 loan to move across 500 West from West Bountiful to Bountiful when The Commons development displaced them, is in bankruptcy.

However, Jensen said “we’re the first in line for any payments and hope to cover most of the (potential) loss.”

Installation of a storm drain on 100 West to service downtown businesses should see construction start following Handcart Days, he said. Some $315,000 has been budgeted for that project.

“As new development occurs on Main Street, such as the new, expanded Zions Bank, we will need to be able to tie all of those roof drains and parking lots into it (storm drain),” Jensen said. “Right now there is no storm drain system that comes up the lateral streets (Center, 1st, 2nd North, etc.).

“There is no place for the water runoff to go. First West is undersized. This is a preemptive measure in anticipation of new buildings coming on line,” he explained. “With increased parking, sidewalks, we’re putting in that storm drain to allow for that.”

In addition, pavers will be replaced. They are the brick interspersed on the downtown Main Street sidewalks, with $20,000 budgeted.

tbusselberg@davisclipper.com