Annually, the Ferndale DDA Board of Directors and Executive Director draft a budget for its next fiscal year (July – June) by submitting it to the City of Ferndale as part of its annual budget adoption process. The board does not finally adopt a budget for any fiscal year until the budget has been approved by the City Council. The board may, however, temporarily adopt a budget in connection with the operation of any improvements which have been financed by revenue bonds where required to do so by the ordinance authorizing the bonds.
Mid-year budget changes are submitted to City Council in conjunction with City of Ferndale’s budget schedule, or as the Board determines necessary.
The DDA’s financial statements are included in the City’s audited financial statements as a component unit and are not audited separately.
Previous year’s audits are posted to the City of Ferndale’s website.
DDA Financial Reserves
This information is provided to outline and explain the financial reserves, known as fund balance, kept by the Ferndale Downtown Development Authority. Specifically, this section is meant to identify any revenues from the Tax Increment Financing District (TIF) which have not been expended within 5 and 10 years of their receipt.
At the end of Fiscal Year 2019, the audit of the Ferndale DDA reported a fund balance of $1,058,399, which included $68,386 of fixed assets and $26,600 of payables which had not yet been processed. That left an available cash fund balance of $963,408.
While the primary source of revenue for the Ferndale DDA is capture from the TIF District, there are several other sources of funding. Additional revenues include voted property taxes, grants, interest income, contributions, and proceeds from events. If the assumption is made the TIF revenues are spent first each year, the fund balance built up over the course of the previous 10 years is comprised entirely of Non-TIF revenues.
5 Year Unexpended Funds: FY15-FY19
Total Net of Revenues & Expenditures: +$494,070
Total Non-TIF Revenue: $592,474
10 Year Unexpended Funds: FY10 – FY19
Total Net of Revenues & Expenditures: +$782,413
Total Non-TIF Revenue: $1,309,870
What is Our Plan and Timeframe for Spending These Funds?
These funds have been accumulated for the following capital projects as outlined in our 2012 Development/TIF Plan:
- The dot – A mixed-use parking, retail, and office development coming to downtown Ferndale. The DDA has committed $1 million to the project: $250,000 from unencumbered fund reserves for the West Troy streetscapes, and $750,000 over the course of a 20 year bond. The parking component of this project will be finalized and open in June 2020. The retail/office components will open at a later date.
- Schiffer Park – Expansion and redevelopment of a pocket park located at 9 Mile Road and Planavon Street. The DDA has committed $75,000 to this project which is currently out to bid and will break ground in 2020.
In 2019, the Ferndale DDA began work on a Strategic Plan for Capital Improvement which will include an updated Development/TIF Plan. We expect this plan to be finalized and adopted in 2020. This updated plan will help us ensure that we are spending and saving tax money appropriately to best serve our community and help create a lively downtown with a mixture of uses.