Ferndale Approves Plan for Auto Parking Fund Deficit Elimination

Ferndale approves plan to remove parking funding shortfalls

(Crystal A. Proxmire, January 29, 2026)

Ferndale, MI – The Metropolis of Ferndale voted Monday to approve a deficit elimination plan for the Auto Parking Fund, following a number of years of a detrimental fund steadiness following the development of “the dot” mixed-use parking deck.

The state of Michigan is demanding the submission of a plan that will remove the deficit inside 5 years. Below the plan, working revenues in 2025 had been $2,596,339, whereas whole bills (together with bond principal, curiosity and advances, and basic fund curiosity) had been 2,929,957.

The plan consists of three methods to convey the account into compliance:

1. Lowering bills: This has largely been achieved via current Council motion to incorporate bank card processing charges in buyer transaction charges. Some smaller cuts will even be wanted through the triennial funds course of for FY27-29.

2. Rising Revenues: Changes to revenues shall be thought of and voted on as a part of the triennial budget-making course of. Workers will present comparable information for different parking methods within the space, together with a proper charge advice.

3. Cancellation of a Portion of Inter-Fund Debt: By way of a separate motion, the Metropolis Council could contemplate forgiving a portion of the $2 million debt issued from the Basic Fund to the Auto Parking Fund in 2020. To this point, roughly $500,000 has been paid off. The debt nonetheless owed to the Basic Fund for this obligation is straight accountable for the detrimental fund steadiness. The plan requires a minimal 35% forgiveness on annual funds due underneath a brand new five-year plan.

The plan gives particulars, stating: “The Metropolis will proceed its technique of alternating annual will increase in hourly parking charges and month-to-month parking charges with a bigger one-time enhance in FY27 of 6.9% of hourly charges. The Metropolis will even implement cost-saving measures, comparable to passing on bank card processing charges. The Metropolis will forgive a portion of debt service yearly because of the Basic Fund, which can’t be funded from the fund’s internet revenues, for a complete of at the very least 35% of the present principal steadiness remaining over a brand new five-year compensation schedule.”

Though the plan submission has been accredited, every motion merchandise within the plan requires its personal vote from the council. The Council does have the pliability to search for different methods to handle the scarcity.

Building of the dot started in 2020, with the COVID pandemic inflicting a pause in development. It additionally slowed the leasing of ground-floor retail areas because the state was on lockdown. Quite a few monetary challenges arose throughout development.

Plans for the dot had additionally known as for the development of condominium models on the facet of the constructing, which had been supposed to assist offset prices however by no means got here to fruition. When requested for an replace on this, Metropolis Supervisor Colleen O’Toole instructed the Metropolis Council she would look into it.

View the scarcity discount plan here.

Be taught extra in regards to the level here.

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