Title
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2024
Memorandum
Attached for your review and action is the proposed FY 2024 City Budget that totals $600 million in revenue and $564 million in expenditures and is in compliance with the City Charter. This budget resolution reflects the recommended budget delivered to you on April 17, 2023.
General Fund Activities
This recommended budget holds recurring expenditure levels in line with the projected revenue levels.
General Fund recurring expenditures increased by $6,822,146 (+5.8%) compared to FY 2023’s adopted budget, and recurring revenues increased by $7,554,357 (+6.4%). Below is a summary of non-recurring expenditures:
FTEs
The City’s FTEs are proposed to increase from 802, as adopted for FY 2023, to 829 in FY 2024 (excluding transfers between Service Areas and net of incidental changes):
• 1.0 FTE increase in Community Services, Parks & Recreation
• 1.0 FTE increase in Community Services, Planning
• 4.0 FTE increase in Community Services, Ann Arbor Housing Commission
• 3.0 FTE increase in City Administrator
• 1.0 FTE increase in City Administrator, Human Resources
• 8.5 FTE increase in City Administrator, Sustainability
• 1.0 FTE decrease in City Administrator, Fleet and Facilities
• 6.0 FTE increase in Public Services
• 1.75 FTE increase in Safety Services, Police
• 2.0 FTE increase in Downtown Development Authority
As part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 829 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 2024 the Headlee rollback multiplier is anticipated to be 1.0):
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Approved by: Martin Dohoney Jr., City Administrator
Body
Whereas, City Council has reviewed the City Administrator’s proposed budget for FY 2024 for the City of Ann Arbor, which was submitted on April 17, 2023 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 2024 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 the proposed list of Capital Improvement projects in the amount of $239,819,695 are approved; and that $118,013,606 be appropriated in FY 2024 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 $1,111,500 be appropriated without regard to fiscal year;
RESOLVED, That a total 829 full-time equivalent positions be adopted in the FY 2024 budget;
RESOLVED, That as part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 829 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 2023 Annexation Funding in the General Fund Planning service unit budget carry forward to FY 2024;
RESOLVED, That any unspent FY 2023 Public Works Apprenticeship Program Funding in the General Fund Public Works service unit budget carry forward to FY 2024;
RESOLVED, That any unspent FY 2023 City Administrator Contingency funding in the General Fund City Administrator service unit budget carry forward to FY 2024;
RESOLVED, That any unspent FY 2023 funding remaining in the FY 2023 Affordable Housing Millage fund carry forward to FY 2024 without regard to fiscal year;
RESOLVED, That any unspent DDA Grants included in the FY 2023 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 2023 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 2024 Ann Arbor-Ypsilanti SmartZone LDFA budget, as a component unit of the City of Ann Arbor in Fiscal Year 2024 in a dedicated fund containing $5,358,941 in revenues and $5,358,941 in expenditures;
RESOLVED, That the following appropriations constitute the General Fund budget for FY 2024;
RESOLVED, That the following other funds revenue and expenditure appropriations are adopted for FY 2024 budget; and
RESOLVED, That the following millages shall be levied for the City of Ann Arbor for FY 2024:
As Amended and Approved by Ann Arbor City Council on May 15, 2023*
See attached approved budget amendments.