Title
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2023
Memorandum
Attached for your review and action is the proposed FY 2023 City Budget that totals $559 million in revenue and $526 million in expenditures and is in compliance with the City Charter. This budget resolution reflects the recommended budget delivered to you on April 18, 2022.
General Fund Activities
This recommended budget holds recurring expenditure levels in line with the projected revenue levels.
General Fund recurring expenditures increased by $4,128,892 (+3.6%) compared to FY 2022’s adopted budget, and recurring revenues increased by $5,075,679 (+4.5%). Below is a summary of non-recurring expenditures:
FTEs
The City’s FTEs are proposed to increase from 785, as adopted for FY 2022, to 802 in FY 2023 (excluding transfers between Service Areas and net of incidental changes):
• 3.0 FTE increase in Community Services, Parks & Recreation
• 2.0 FTE increase in Community Services, Building & Rental
• 6.5 FTE increase in Public Services
• 1.50 FTE increase in City Attorney
• 1.0 FTE increase in Safety Services, Police
• 1.5 FTE increase in Safety Services, Fire
• 1.75 FTE increase in Downtown Development Authority
As part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 802 FTEs by 10 on a temporary basis.
Millage Rates
The following millages are the maximum allowable levy after the Headlee rollback multiplier is applied (for FY 2023 the Headlee rollback multiplier is anticipated to be .9934):
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Approved by: Martin Dohoney Jr, Interim City Administrator
Body
Whereas, City Council has reviewed the City Administrator’s proposed budget for FY 2023 for the City of Ann Arbor, which was submitted on April 18, 2022 in accordance with Charter Section 8.2; and
Whereas, A public hearing and various public meetings have been held to obtain citizen input on the proposed budget; and
RESOLVED, That Council adopts the General Fund Allocations as listed in the FY 2023 Consolidated Plan, to be funded out of the Community Development Budget;
RESOLVED, That any contributions to the Special Assistance Fund in excess of the budgeted amount, shall be appropriated at the time of receipt and for the purpose of the Ann Arbor Assistance Fund;
RESOLVED, That any funds contributed to the Parks Memorials and Contributions fund in excess of the budgeted amount shall be appropriated at the time of receipt for the purpose of that fund without regard to fiscal year;
RESOLVED, That any contributions to the Drug Enforcement Fund, the Federal Equitable Sharing Forfeiture Fund and the Michigan Justice Training Fund in excess of the budgeted amount, shall be appropriated at the time of receipt, without regard to fiscal year, and for the purpose of the Drug Enforcement Fund, the Federal Equitable Sharing Forfeiture Fund and the Michigan Justice Training Fund, respectively;
RESOLVED, That any contributions from the Downtown Development Authority (DDA) to the General Capital Fund for the purpose of the Streetlight Replacement and Painting Project, in excess of the budgeted amount, shall be appropriated at the time of receipt, without regard to fiscal year;
RESOLVED, That City Council approve a temporary waiver of the portions of sections 1.3 and 2.2 of the Other Post-Employment Benefits (OPEB) Funding Policy for FY 2023 that provide for contributions in excess of (a) the Actuarial Determined Contribution for FY 2023, and (b) funds provided under the City of Ann Arbor Employee Benefits millage, for the purpose of providing relief to the City’s operating funds due to the COVID-19 pandemic;
RESOLVED, That the proposed list of Capital Improvement projects in the amount of $256,100,747 are approved; and that $106,488,247 be appropriated in FY 2023 for these or similar projects, within the respective funds, as determined by the Service Area, and may be carried forward without regard to fiscal year;
RESOLVED, That the Technology Improvement projects in the amount of $1,400,955 be appropriated without regard to fiscal year;
RESOLVED, That a total 802 full-time equivalent positions be adopted in the FY 2023 budget;
RESOLVED, That as part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 802 FTEs by 10 on a temporary basis;
RESOLVED, That the City Administrator be authorized to transfer funds between service units within the designated service areas or from Non-Departmental within the same fund, or from the City Administrator budget within the same fund;
RESOLVED, That any unspent FY 2022 Annexation Funding in the General Fund Planning service unit budget carry forward to FY 2023;
RESOLVED, That any unspent DDA Grants included in the FY 2022 budget and approved by the DDA Board may be carried forward without regard to fiscal year;
RESOLVED, That any unspent DDA capital funds included in the FY 2022 budget and approved by the DDA Board may be carried forward without regard to fiscal year;
RESOLVED, That the City Council approve the proposed FY 2023 Ann Arbor-Ypsilanti SmartZone LDFA budget, as a component unit of the City of Ann Arbor in Fiscal Year 2023 in a dedicated fund containing $6,816,617 in revenues and $6,816,617 in expenditures;
RESOLVED, That the following appropriations constitute the General Fund budget for FY 2023;
RESOLVED, That the following other funds revenue and expenditure appropriations are adopted for FY 2023 budget; and
RESOLVED, That the following millages shall be levied for the City of Ann Arbor for FY 2023:
As Amended and Approved by Ann Arbor City Council on May 16, 2022.
See Attached Approved Amendments as Approved by Ann Arbor City Council on May 16, 2022.