Title
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027
Memorandum
Attached for your review and action is the proposed FY 2027 City Budget that totals $723 million in revenue and $650 million in expenditures and is in compliance with the City Charter. This budget resolution reflects the recommended budget delivered to you on April 20, 2026.
General Fund Activities
This recommended budget holds recurring expenditure levels in line with the projected revenue levels (see attached file for full details).
General Fund recurring expenditures increased by $3,470,260 (+2.4%) compared to FY 2026's adopted budget, and recurring revenues increased by $4,658,002 (+3.2%). Below is a summary of non-recurring expenditures:
(see attached file for full details)
FTEs
The City's FTEs are proposed to increase from 863, as adopted for FY 2026, to 893 in FY 2027 (excluding transfers between Service Areas and net of incidental changes):
* 7.0 FTE increase in Community Services, Parks & Recreation
* 5.0 FTE increase in Community Services, Ann Arbor Housing Commission
* 1.0 FTE increase in City Administrator
* 1.0 FTE increase in City Administrator, Clerk's Office
* 1.0 FTE increase in City Administrator, Fleet, Facilities & Airport
* 3.0 FTE increase in City Administrator, Sustainable Energy Utility
* 1.0 FTE increase in Safety Services, Police
* 1.0 FTE increase in Safety Services, Fire
* 10.0 FTE increase in Public Services
As part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 893 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 2027 the Headlee rollback multiplier is anticipated to be 0.9982):
(see attached file for full details)
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Approved by: Martin Dohoney, Jr, City Administrator
Body
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