Title
Resolution to Approve Deficit Elimination Plan as of June 30, 2021 for the Alternative Transportation Fund
Memorandum
Pursuant to the law of the State of Michigan, the City must prepare and authorize a deficit elimination plan for the Alternative Transportation Fund, which as of June 30, 2021 had a fund deficit of $14,380.00.
The fund deficit is a result of the pedestrian improvement portion of the Allen Creek Berm project budget overrun. On June 7, 2021 City Council passed #R-21-184, which increased the budget based on Engineering estimates that were currently available. The budget increase was funded by the Major Street Fund as funds in the Alternative Transportation Fund were insufficient. Unfortunately, the costs were underestimated and actual costs that were incurred through June 30, 2021 exceeded the amended budget taking the fund into a deficit situation by $14,380.00.
On January 3, 2022 City Council approved #R-22-003, authorizing the proposed deficit elimination plan which was addressed with the passing of the FY 2022 budget. The Alternative Transportation Fund receives annual revenue equal to 5% of the budgeted Michigan Transportation Fund tax revenue. The FY 2022 budgeted revenue is $649,210.00. To date, $324,604.00 has been received, thus eliminating the deficit.
The City was contacted by the Department of Treasury requesting further details of the deficit elimination plan including projected budget with revenues by sources, expenditure by line-item and changes in fund balance. This in turn requires certification of the plan by City Council.
The City of Ann Arbor is requesting the City Council approve the City's Deficit Elimination Plan for fiscal year ended June 30, 2021.
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., Interim City Administrator
Body Whereas, The City of Ann Arbor's Alternative Transportation Fund had a $...
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