Adrian DDA approves conservative FY2026-27 budget; city transfer, fireworks funding and restricted gifts debated

The Downtown Adrian Main Street DDA board approved a conservative FY2026-27 budget at its March 26 special meeting, adopting a plan that covers essential operating costs and excludes projected fundraising revenues until those funds are realized.

Board member Kate (S2) presented the proposed budget, telling the group, "This budget does not include projected revenue from fundraising efforts as those funds are not guaranteed at this time." Kate said any additional revenue secured during the fiscal year could be allocated later to events or promotions.

Board members questioned when a $50,000 transfer approved by the city commission would appear in DDA records. An agency official (S4) said the transfer would not yet be reflected in the draft budget and explained that TIF transfers and the timing of realizing funds affect the fund balance. S4 noted the TIF line (105599) and described how unspent TIF would add to the DDA's fund balance over time.

The meeting also covered restricted gifts and event funding. Meeting participants noted a Hickman Foundation gift for the city square had been recorded in the DDA account; the meeting transcript lists the amount as "$2.50," which appears inconsistent with context and is not confirmed in the meeting record. Board members asked whether expected fireworks revenue and required deposits would be recorded in the current fiscal year; staff said fundraising dollars for fireworks are tracked as restricted funds and will be spent only for that event, and that a deposit due before the event could be recorded in the current fiscal year even if the event occurs after July 1.

Board members and staff discussed the sequence for reflecting new grant awards or fundraising in the budget. An agency official advised that for large grants with matching requirements, it is best practice to seek permission from the governing body before applying so the match obligation is transparent. Another participant emphasized caution against projecting revenues that have not been received.

After discussion, the board moved to approve the FY2026-27 budget as presented; the motion was made, supported and adopted by voice vote.

Votes at a glance: The board carried the motion to adopt the FY2026-27 budget by voice vote at the March 26 meeting. The transcript does not include a roll-call tally of individual votes.

What happens next: Staff indicated that once external funds (grants or donations) are received, the board can consider budget amendments to reflect those revenues and related expenditures.