Title
Resolution to Amend Ann Arbor City Budget for Fiscal Year 2024 (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to amend the Ann Arbor City Budget for Fiscal Year 2024.
The Michigan Public Act 2 of 1968, as amended, provides that the City shall not incur expenditures in excess of the amounts appropriated. In order to comply with PA 2, the City monitors expenditures against the adopted budget on a monthly basis and appropriates budget amendments to be adopted by Council as needed.
Management of the City has monitored the revenue and expenditure activity against the adopted budget for the various funds throughout the year. In addition, management has attempted to periodically forecast the remainder of the fiscal year’s revenue and expenditures.
In monitoring the various funds, management has forecasted certain variances versus budget that require budget amendments to remain in compliance with PA 2 as indicated above. These variances and the reasons for the variances are listed on the attachment.
The total requested General Fund budget amendment is $1,848,100. A portion of this amount is covered by $592,000 from assigned fund balance for severances and $340,800 is reimbursement for services. The budget amendment for all other funds totals $3,378,346. A detail of the requested appropriations is attached.
Passage of this Resolution and approval of the fiscal year 2024 budget amendments as prepared is recommended.
Staff
Prepared by: Kim Buselmeier, Financial Manager
Reviewed by: Marti Praschan, Financial Services Area Administrator & CFO
Approved by: Milton Dohoney Jr, City Administrator
Body
Whereas, On May 15, 2023, City Council adopted the annual operating budget for FY 2024 for the City of Ann Arbor;
Whereas, The Michigan Public Act 2 of 1968, as amended, provides that the City shall not incur expenditures in excess of the amounts appropriated;
Whereas, The City’s management have monitored revenues and expenditures and have forecasted revenues and expenditures against the adopted budget;
Whereas, The forecasted expenditures are in excess of the City’s adopted budget for some units in the General Fund, and certain other funds in total as listed below;
RESOLVED, That Council amend the FY24 General Fund expenditure budget by $1,848,100 as follows, with the source of funding for severances of $592,000 from assigned fund balance, $340,800 from reimbursements, and the remaining $915,300 from a use of fund balance as indicated in the Attached document and below:
GENERAL FUND EXPENDITURES
Engineering 200,000
Building and Rental 40,000
Fire 310,000
City Administrator 25,000
Communications 300
Information Technology 219,800
Non-Departmental 652,000
Parks & Recreation 401,000
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TOTAL GENERAL FUND EXPENDITURES $1,848,100
RESOLVED, That Council amend the following other funds’ revenue and expenditure budgets for FY 2024, with the source of funding as indicated in the attached document and below:
ATTACHMENT
City of Ann Arbor
Proposed Fiscal Year 2024 Budgeted Amendments
