DDA Reporting Requirements of PA 57 of 2018

The DDA is funded through a variety of sources including a 1 mill tax on properties located within the DDA district, a tax increment finance plan, grants and donations. The DDA, with the approval of the City Council, can borrow money and issue revenue bonds or notes to finance all or part of the cost to implement the DDA’s development plan.

Properties located within the downtown development district pay 1 mill to the operation of the DDA office. The millage has been reduced from 2 mills when introduced in 1996.

The primary funding source of the DDA is the municipal finance tool, Tax Increment Financing or TIF. In place in Frankenmuth since 1994, the impact of the TIF plan has been powerful with investment in major public improvements including engineering and/or construction for: streetscaping, storm sewer and sanitary sewer improvements, park development, traffic management, energy-use reduction and ongoing maintenance.  Leading with public investment, the City through the DDA and TIF, sustains and attracts private investment and jobs creation.

The boundaries of the Frankenmuth downtown development district and tax increment finance district are the same. For more information about the Frankenmuth TIF, click here.

Annual expenditures of the DDA are prioritized to make annual bond payments, to maintain the streetscaping infrastructure installed by the DDA, and to provide for public improvements necessary to complete the projects of the approved development plan.

Capital Reserve Fund. In FY 2008-9, the DDA established a Capital Reserve Fund to provide funding for emergency repairs and/or replacement for systems installed by the DDA including electrical (street lights,) and irrigation (landscape,) and for repair of such physical items as decorative walls, landscape, flags and banners, fountains, sidewalks, crosswalks and other similar items, constructed by the DDA as part of the Streetscape project. The current account balance (as of 2017-18 Fiscal Year Audit, ending June 30, 2018) for this fund is $125,525. On an annual basis, if the DDA General Fund has sufficient revenues to do so, the DDA sets aside money to support the Reserve Fund. The DDA will cap the fund when the reserve fund reaches $250,000.

Since the Capital Reserve Fund was started, the DDA has paid for repairs to the irrigation system, upkeep of the M83 crosswalks and replaced the street lighting system from the use of Metal Halite and High Pressure Sodium Light and Ballast Systems to LED.  The fund is used regularly for upkeep and maintenance.

3.  Annual Audits 
The DDA is audited annually each fiscal year, in conjunction with the City of Frankenmuth's audit. The audit is usually completed by December of the year following the end of the fiscal year. The DDA fiscal year is July through June.
For the 2018-19 DDA Audit, click here.
For the 2017-18 DDA Audit, click here. 
For the 2016-17 DDA Audit, click here.


4.  Currently Adopted Tax Increment Finance Plan & Development Plan. 

5.  Current Authority Staff Contact Information.

6.  A Listing of Current Contracts with a description of those contracts and other documents related to management of the authority and services provided to the authority.

Staffing.  DDA staff is a City employee, hired for the exclusive use of the DDA.  He is an at will employee.  State law allows that the DDA staff person may be an employee of the City to access benefits, among others. 

Other professional staff members working for the City (including City Manager, Clerk, Treasurer, Assessor, and Police Chief) along with City clerical staff also work on DDA projects frequently. In return, the DDA pays a $40,000 annual administration fee for such work.  DPW employees who work on DDA related issues are billed by the hour for such services.  City owned equipment used on DDA projects is billed to the DDA on an hourly basis, which is billed at MDOT established rates.  Materials purchased by the City on the DDA's behalf are billed to the DDA as used. 

Office supplies, telephone and internet services and other similar expenses are reimbursed for their usage to the City by the DDA. 

Contracts.  The DDA has no standing contracts or retainers for services. 

Use of Outside Contractors. The bulk of the work of the DDA is handled through City of Frankenmuth departments. When necessary, the DDA will hire a consultant or professional for specific program work.

2017 - 2020  Professional Services & Purchasing

The DDA follows the City's policy to require formal bids for purchases of $20,000 or more. In some cases, proposals are sought for projects or materials of less value. 

The DDA continues to share 50% of the expenses for engineering services for levee improvements consulting work with the City of Frankenmuth’s engineer, Jason Matteo PE.  Matteo was hired by contract through the City of Frankenmuth.

The DDA continues to share 50% of the expenses for defending the City in tax tribunal cases.  The City's Attorney for these cases is Peter Goodstein, who is hired by the City.  The DDA has no influence on the City’s management of these cases.

The DDA uses two companies to help maintain the irrigation system: Mid-Michigan Lawn Sprinklers and Turf Tech. Fresh Cut Lawn Care provides limited mowing services.  Services are used on an as-needed basis. 

In 2017-18, the DDA hired Spicer Group to review the workplan and create asbuilts for the LED Changeover project. 

In 2018-20, the DDA hired Rowe Engineering to engineer replacement of the crosswalks at Jefferson and Main and Flint and Main Streets.  Crosswalk replacement will be funded through cash on hand and the Reserve Fund.  The project will be constructed in Spring 2020.

In 2019, the DDA contracted with Stephen List to provide Project Management for the Frankenmuth Sports Complex. An active Memo of Understanding is in place with the Frankenmuth Youth Sports Association (FYSA) and the DDA. 

As needed, the DDA uses attorneys, Kevin Kilbey of McGraw Morris and Peter Goodstein , for legal counsel.

Flowers and other seasonal décor are purchased from area growers including Frankenmuth Florist, Abele’s and Boehler’s.  The City's Landscape Professional on staff along with seasonal employees provides for all required services.

Electrical Systems are maintained by the City 's Electrician on staff, with the purchase of repair parts from various companies including Standard Electric and Medlar.

7.  An updated synopsis of activities of the authority, a list of authority accomplishments and a list of authority projects and investments for the preceding year.  These items are included in the DDA Annual Reports, which are presented to the City Council in October of each year. 

8.  Promotions and Events. While the DDA statute allows for DDA expenditures for promotions and events, the Frankenmuth DDA limits the use of such funding as the Frankenmuth Chamber and CVB manage most advertising needs and individual organizations manage most events. The DDA has participated in collaborative efforts to advertise for business development, residential attraction and similar themes. No such efforts were recorded in the previous fiscal year.