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File #: 22-0139    Version: 1 Name: 2/7/22 Resolution to Approve Deficit Elimination Plan
Type: Resolution Status: Passed
File created: 2/7/2022 In control: City Council
On agenda: 2/7/2021 Final action: 2/7/2022
Enactment date: 2/7/2022 Enactment #: R-22-027
Title: Resolution to Approve Deficit Elimination Plan as of June 30, 2021 for the Alternative Transportation Fund


Resolution to Approve Deficit Elimination Plan as of June 30, 2021 for the Alternative Transportation Fund


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.


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 $14,380.00 deficit fund balance on June 30, 2021; and


Whereas, 1971 PA 140 requires that a Deficit Elimination Plan be formulated by the local unit of government and filed with the Michigan Department of Treasury;


RESOLVED, The City of Ann Arbor adopts the following as the Alternative Transportation Fund Elimination Plan; and:



RESOLVED, That a certified copy of this resolution be forwarded to the Michigan Department of Treasury for Treasury certification.