Unless he receives other direction from the Ann Arbor city council at its Dec. 7 meeting, city administrator Roger Fraser told councilmembers at their Saturday budget retreat that he’ll begin implementing a plan to trim around $3 million out of the current fiscal year budget.
The moves are necessary to balance the FY 2010 budget, which ends June 30, 2010.
Some of that trimming is a matter of accounting for one-time savings – $500,000 had been budgeted for the Pfizer tax refund, but was settled last year so won’t be on the books for FY 2010. Other trimming is a matter of accepting current situations and committing to them going forward, for recurring savings – for example, vacancies from excess reductions of police through the early-out retirement incentive would not be filled.
But some of the trimming would entail cutting positions currently filled – 14 firefighter positions, which account for around $400,000 of the $3 million to be saved in FY 2010. The move to eliminate firefighter jobs had been part of the FY 2011 plan, but would be implemented six months earlier – now.
For FY 2011, the picture gets even worse, with the city facing a $5.4 million shortfall. And looking ahead one year after that, city council will be faced with constructing a budget for FY 2012 that is 30% smaller than the one they approved for FY 2009.