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File #: 20-0665    Version: Name: 5/18/20 - FY21 Budget and Financial Recovery Plan
Type: Resolution Status: Passed
File created: 5/18/2020 In control: City Council
On agenda: 5/18/2020 Final action: 5/22/2020
Enactment date: 5/22/2020 Enactment #: R-20-177
Title: Resolution Regarding FY21 Budget and Financial Recovery Plan
Sponsors: Jane Lumm, Kathy Griswold
Related files: 20-0762
Resolution Regarding FY21 Budget and Financial Recovery Plan
Whereas, The Interim City Administrator presented to City Council an appropriately balanced FY21 City budget proposal on April 16 that because of the adverse revenue impacts of the COVID-19 pandemic is now outdated and no longer viable;

Whereas, The adverse impacts are not known, but preliminary estimates indicate the FY21 revenue reductions could be $10 million in the City's general fund and $10M in other major city funds including water, sewer, and major & local street funds;

Whereas, The Ann Arbor City Charter requires the annual city budget for the fiscal year beginning July 1 be established by the end of May;

Whereas, City staff developed and presented to City Council on May 11 a financial recovery framework focusing on the general fund and other major city funds;

Whereas, City Council recognizes that because of the uncertainty of the COVID-19 related impacts and the time required to prepare the city budget, it is not possible to develop a line-item FY21 budget that reflects the reduced revenues and necessary reductions to expenditures;

Whereas, The Interim City Administrator has indicated that policy-level direction from City Council on the financial recovery plan in conjunction with adoption of the FY21 budget would be appropriate and helpful and City Council believes providing such direction is consistent with its responsibilities and fiduciary obligation;

Whereas, City Council further believes that such policy-direction is best provided in the form of guiding principles and expectations regarding the objectives of the Recovery Plan and its implementation;

Whereas, City Council's guiding principles are fiscal responsibility, shared sacrifice, and ensuring that continued delivery of quality basic/essential services are protected and prioritized; and

Whereas, City Council recognizes that its expectations must be accompanied by a degree of flexibility granted to the Interim ...

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