ADRIAN — The Adrian Downtown Development Authority is facing a financial shortfall and may need to tap into its reserves to continue operating through the end of the fiscal year.
During a special meeting Wednesday morning, city officials recommended the DDA transfer $115,000 from its TIF fund into its operating fund to cover expenses through June 30th.
Without the transfer, officials state the DDA would lack the necessary funds to continue operations. Even with the move, projections indicate the fund balance may drop to approximately $2,000 by fiscal year-end.
The DDA’s current TIF balance sits at approximately $139,000, but leaders warn margins remain tight and a second transfer may be needed in the coming months.
City Administrator Chad Hall recommended the board operate at a scaled-back level with just one employee, citing the financial strain. Officials cited additional financial pressures: $8,000 in outstanding “Downtown Dollars” and $250,000 previously listed in accounts that is restricted for other downtown projects.
The DDA board approved the transfer and will now collaborate with city staff to stabilize finances before the next budget cycle. A special budget meeting to review and approve the 2026–2027 budget is set for Thursday, March 26th at 8 a.m.