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File #: 25-0752    Version: 1 Name: 4/7/25 Resolution for Rainy Day Fund
Type: Resolution Status: Introduced from Council
File created: 4/7/2025 In control: City Council
On agenda: 4/7/2025 Final action: 4/7/2025
Enactment date: Enactment #:
Title: Resolution to Return $2.0 Million to the General Fund Fund Balance
Sponsors: Cynthia Harrison

Title

Resolution to Return $2.0 Million to the General Fund Fund Balance

Staff

Reviewed by:  Atleen Kaur, City Attorney

                                            Marti Praschan, CFO

                                            Milton Dohoney Jr., City Administrator

Body

Whereas, The City of Ann Arbor is committed to responsible fiscal stewardship and maintaining financial stability;

 

Whereas, The City faces ongoing financial uncertainties, including the potential loss of federal funding and anticipated budget reductions in critical areas such as sustainability, housing, and public infrastructure;

 

Whereas, The City must prioritize essential services and long-term fiscal health;

 

Whereas, The City’s unassigned General Fund fund balance serves as a safeguard against unforeseen economic downturns, emergencies, and revenue shortfalls, ensuring that essential services remain funded without placing additional burdens on residents; and

 

Whereas, A prudent approach to financial planning requires the strategic use of resources to maintain flexibility in responding to emerging needs and priorities;

 

RESOLVED, That the Ann Arbor City Council directs that the $2 million previously allocated for the Phase 2 municipalization study be returned to the General Fund fund balance to strengthen financial reserves and ensure fiscal responsibility; and

 

RESOVLED, That these funds shall be held in the General Fund unassigned fund balance for future use, with any future appropriations requiring City Council approval to ensure alignment with the City’s highest-priority needs.

 

Sponsored by:  Councilmember Harrison