Title
Resolution to Appropriate Funding for One-Time Strategic Initiatives ($2,850,000) and Reallocate Bicentennial Funding to Legacy Projects ($200,000) (8 Votes Required)
Memorandum
The City of Ann Arbor is currently experiencing revenue growth beyond what was previously anticipated. This is due in part to tax receipts from some of the development projects that have been taking place in the city. These revenues have enabled the City to solidify the General Fund fund balance at a level exceeding the required reserve policy minimum. The increase in revenue has made it possible to enhance the reserve from 15% to 20% serving as a positive factor helping the City to maintain its hard earned AAA rating.
In light of these factors the City Administrator’s Office is proposing a limited series of budget appropriations that are consistent with the City of Ann Arbor’s strategic interests. It is being proposed that one-time funding be made available for these strategic initiatives:
• $1,000,000 - Additional funding for the MEU Phase II Study
• $1,000,000 - Funding to be able to respond to potential negative or debilitating impacts at the local level due to the change in the federal government administration
• $250,000 - Funding for the future Unarmed Response Program
• $250,000 - Funding for future Economic Development Due Diligence
• $250,000 - Funding to address Parking Equity
Furthermore, the City Administrator’s Office is proposing to utilize a portion of the previously appropriated Bicentennial funding to support the two legacy projects related to Bicentennial Park and the Elks Lodge. The collective impact of these expenditures will serve to better position the City of Ann Arbor.
Budget/Fiscal Impact: The funds for these one-time projects are available in the General Fund fund balance.
Staff
Prepared by: Kim Buselmeier, Interim Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City has experienced additional revenue growth above previous expectations;
Whereas, The General Fund fund balance exceeds required reserve policy limits; and
Whereas, Strategic initiatives have been identified that are consistent with the City’s strategic interests;
RESOLVED, That City Council appropriates $2,850,000 from the General Fund fund balance to the FY25 General Fund expenditure budget for the following strategic initiatives:
• $1,000,000 - Additional funding for the MEU Phase II Study
• $1,000,000 - Funding to be able to respond to potential negative or debilitating impacts at the local level due to the change in the federal government administration
• $250,000 - Funding for the future Unarmed Response Program
• $250,000 - Funding for future Economic Development Due Diligence
• $250,000 - Funding to address Parking Equity
• $100,000 - Funding in support of the Elks Lodge repair and restoration
RESOLVED, That City Council approves reallocating $100,000 of the Bicentennial funds in the FY25 General Fund City Administrator expenditure budget to the FY25 General Fund Parks and Recreation expenditure budget for the purposes of the Bicentennial Park Project;
RESOLVED, That City Council approves reallocating $100,000 of the Bicentennial funds in the FY25 General Fund City Administrator expenditure budget in support of the Elks Lodge repair and restoration;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.
As Amended and Approved by Ann Arbor City Council on December 16, 2024.