Title
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2021
Memorandum
Attached for your review and action is the proposed FY 2021 City Budget that totals $513 million in revenue and $466 million in expenditures and is in compliance with the City Charter. This budget resolution reflects the recommended budget delivered to you on April 20, 2020.
General Fund Activities
This recommended budget holds recurring expenditure levels in line with the projected revenue levels.
General Fund recurring expenditures increased by $3,472,556 (+3.2%) compared to FY 2020’s adopted budget, and recurring revenues increased by $3,910,048 (3.6%). Below is a summary of non-recurring expenditures:
FTEs
The City’s FTEs are proposed to increase from 762, as amended during FY20, to 771 in FY 2021 (excluding transfers between Service Areas and net of incidental changes):
• 1.0 FTE increase in Community Services, Housing Commission (amended during FY 2020)
• 1.0 FTE increase in Safety Services, Police (amended during FY 2020)
• 1.0 FTE increase in City Administrator, Sustainability (amended during FY 2020)
• 2.0 FTE increase in Public Services, Engineering
• 1.0 FTE increase in Community Services, Housing Commission
• 0.15 FTE increase in Community Services, Planning
• 0.75 FTE increase in City Attorney
• 2.0 FTE increase in Financial Services, Information Technology
• 1.0 FTE increase in Safety Services, Police
• 3.0 FTE increase in City Administrator, Sustainability
• 0.175 FTE increase in City Administrator, Human Resources
• 1.0 FTE decrease in City Administrator, Communications
As part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 771 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 2021 the Headlee rollback multiplier is anticipated to be 0.9912):
Staff
Prepared by: Matthew V. Horning, Interim Chief Financial Officer
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, City Council has reviewed the City Administrator’s proposed budget for FY 2021 for the City of Ann Arbor, which was submitted on April 20, 2020 in accordance with Charter Section 8.2; and
Whereas, A public hearing and various public meetings have been held to obtain citizen input on the proposed budget; and
RESOLVED, That Council adopts the General Fund Allocations as listed in the FY 2021 Consolidated Plan, to be funded out of the Community Development Budget;
RESOLVED, That any contributions to the Special Assistance Fund in excess of the budgeted amount, shall be appropriated at the time of receipt and for the purpose of the Ann Arbor Assistance Fund;
RESOLVED, That any funds contributed to the Parks Memorials and Contributions fund in excess of the budgeted amount shall be appropriated at the time of receipt for the purpose of that fund without regard to fiscal year;
RESOLVED, That any contributions to the Drug Enforcement Fund, the Federal Equitable Sharing Forfeiture Fund and the Michigan Justice Training Fund in excess of the budgeted amount, shall be appropriated at the time of receipt, without regard to fiscal year, and for the purpose of the Drug Enforcement Fund, the Federal Equitable Sharing Forfeiture Fund and the Michigan Justice Training Fund, respectively;
RESOLVED, That the proposed list of Capital Improvement projects in the amount of $253,948,050 are approved; and that $60,676,050 be appropriated in FY 2021 for these or similar projects, within the respective funds, as determined by the Service Area, and may be carried forward without regard to fiscal year;
RESOLVED, That the Technology Improvement projects in the amount of $1,640,268 be appropriated without regard to fiscal year;
RESOLVED, That a total 771 full-time equivalent positions be adopted in the FY 2021 budget;
RESOLVED, That as part of the workforce planning initiative, Council is authorizing staff to exceed the authorized 771 FTEs by 10 on a temporary basis;
RESOLVED, That the City Administrator be authorized to transfer funds between service units within the designated service areas or from Non-Departmental within the same fund, or from the City Administrator budget within the same fund;
RESOLVED, that any unspent FY 2020 Special Event Funding in the General Fund Building & Rental service unit budget carry forward to FY 2021;
RESOLVED, that any unspent FY 2020 Annexation Funding in the General Fund Planning service unit budget carry forward to FY 2021;
RESOLVED, that any unspent DDA Grants included in the FY21 budget and approved by the DDA Board may be carried forward without regard to fiscal year;
RESOLVED, That the City Council approve the proposed FY 2021 Ann Arbor-Ypsilanti SmartZone LDFA budget, as a component unit of the City of Ann Arbor in Fiscal Year 2021 in a dedicated fund containing $6,085,125 in revenues and $6,085,125 in expenditures;
RESOLVED, That the following appropriations constitute the General Fund budget for FY 2021;