At its June 18, 2012 meeting, the Ann Arbor city council amended the budget for its current fiscal year to bring actual expenditures in line with budgeted amounts – so that the city’s various funds do not show an excess in expenditures over budgeted amounts for the year. The amendments are necessary in order to conform with Act 621 of 1978 (Uniform Budgeting and Accounting Act).
The council’s action bumped the general fund expense budget from $79,642,485 to $80,993,946 – an increase of $1,351,461. According to the memo accompanying the budget resolution, city staff are still projecting that a little less than $0.5 million of fund balance will need to be used for the year, due to other offsetting expenses.
For the general fund, some of the larger adjustments included: tax refunds higher than budgeted ($444,700); police services severances greater than budgeted ($250,000); two unbudgeted elections ($165,000) and a golf fund subsidy that was higher than budgeted ($131,761). [.pdf of all adjustments]
The bulk of the adjustment outside the city’s general fund was for bond refinancing at a lower interest rate ($2,758,100).
At the meeting, city CFO Tom Crawford indicated that he felt the city would still finish the year at a basically “break even” point.
This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]