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 adopt a final budget for any fiscal year until the budget has been approved by the City Council. As the Ferndale DDA is a component unit of the City of Ferndale, you can also find our budgets posted each year within the City of Ferndale Budget.
Mid-year budget changes are submitted to City Council in conjunction with City of Ferndale’s budget schedule, or as the Board determines necessary.
Current Budget Process
Budget Workshop #1: 12.8.22 – Presentation
Draft Budget Presentation from Executive Director: 1.12.23, Draft Budget, Draft Work Plan
Budget Workshop #2: 2.16.23
DDA Vote to Recommend FY 24 Budget to City Council: 3.16.23, Updated Draft Budget, Updated Draft Work Plan
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.
As of June 30, 2022, the Ferndale DDA reported an ending fund balance of $926,529.10 which included $175,255 of fixed assets and $30,806.33 of payables which had not yet been processed (invoices, wages, etc). That left an available cash fund balance of approximately $751,274.
*****Please note these numbers are subject to change pending the annual City of Ferndale audit process.
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.
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
Recent Use of These Funds Have Included:
- The dot Parking Development – 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.
- Schiffer Park – Expansion and redevelopment of a pocket park located at 9 Mile Road and Planavon Street. The DDA committed $205,000 to this project which was finalized in Fall 2020.
Anticipated Use of Fund Balance in The Next Five Years:
- West Nine Mile Streetscapes
- Withington Alley Design and Reconstruction
- Capital Investments in Street Furniture