Possible Proposed Budget Amendments for May 17, 2010 city
council deliberations

Budget Amendments 

Amendment 1 –

Increase the General Fund Revenue Budget and Expenditure
Budgets for Police and Fire, and reinstate 15 Police and 15
Fire FTEs. 

Whereas, The DDA Board has authorized a transfer $2,000,000
to the City’s General Fund for FY 2011 with the
understanding a more definitive agreement on the allocation
of parking activities will be completed with the City to be
effective July 1, 2011; and 

Whereas, The Michigan State Treasurer presently projects
State Shared Revenue for municipalities will remain at
existing levels, which is $952,000 greater than what the
City Administrator’s recommended budget has included; and 

Whereas, City Council has approved changes in parking fine
rates, which is estimated to generate an additional
$625,000 in FY 2011; and 

Whereas, Fire Services has revised its capital equipment
plan, which would generate an annual savings of $62,000;
and 

Whereas, The City Administrator’s recommended budget
included a reduction in Police Services of 15 positions
totaling $1,585,783, and Council desires not to reduce
these positions; and 

Whereas, The City Administrator’s recommended budget
included a reduction of 20 positions in Fire Services
totaling $1,946,815; and Council desires to restore 15 of
those positions totaling $1,509,620; and 

Whereas, The above changes would result in a net recurring
surplus of $543,597. 

RESOLVED, That the DDA budget reflect a transfer of
$2,000,000 to the City’s General Fund, and the General Fund
increase its revenue budget to include the DDA transfer; 

RESOLVED, That the General Fund revenue budget reflect an
increase of $952,000 in State Shared Revenue; 

RESOLVED, That the General Fund revenue budget reflect an
increase of $652,000 in parking fines;

 

RESOLVED, That Fire Services reduce its expenditure budget
for capital purchases by $62,000, in the General Fund; 

RESOLVED, That 15 positions are restored in Police
Services, increasing the General Fund expenditure budget
for Police totaling $1,585,783; 

RESOLVED, That 15 positions are restored in Fire Services,
increasing the General Fund expenditure budget for Fire
totaling $1,509,620; 

RESOLVED, That the General Fund’s revenue budget line, Use
of Fund Balance, be decreased by $543,597 to balance this
amendment, reflecting the recurring surplus created by this
amendment. 

Sponsored by:  Mayor Hieftje, Council Members Teall,
Higgins and Hohnke 
 

Amendment 2 –

Increase the General Fund Expenditure Budget for Human
Services funding. 

Whereas, a recurring surplus was approved in Amendment 1;
and 

Whereas, The City Administrator’s recommended budget
included a reduction of $260,000 for Human Services. 

RESOLVED, That the $260,000 for Human Services funding in
the General Fund be restored increasing the expenditure
budget, with a funding source of Prior Year Fund Balance
increasing the revenue budget, and thereby reducing the
recurring surplus. 

Sponsored by:  Mayor Hieftje, Council Members Teall,
Rapundalo, Briere and Smith 
 

Amendment 3 –

Increase the General Fund Expenditure Budget for park
mowing and trimming and eliminate football parking at
Allmendinger and Frisinger parks. 

Whereas, a recurring surplus was approved in Amendment 1;
and 

Whereas, The City Administrator’s recommended budget
included a reduction for park mowing cycle changes and park
trimming cycle changes, and the cost of restoring those to
the 19 day cycle would be $138,000 for mowing and $120,000
for trimming; 

Whereas, The City Administrator’s recommended budget
included revenues of $25,000 for parking at Allmendinger
Park and Frisinger Park during U of M football games. 

RESOLVED, That the park mowing and trimming cycles be
restored to the 19 day cycle, to be funded by an increase
of $138,000 for mowing and $120,000 for trimming in the
General Fund Public Services Field Operations expenditure
budget;

 

RESOLVED, That the parking at Allmendinger Park and
Frisinger Park during U of M football games be eliminated,
and reflected in the General Fund budget as a revenue
reduction of $25,000. 

RESOLVED, That the General Fund Prior Years Fund Balance
revenue budget be increased by $283,000 to balance this
amendment, thereby reducing the recurring surplus. 

Sponsored by:  Council Members Teall, Higgins, Rapundalo,
and Mayor Hieftje 
 

Amendment 4 –

Eliminate the proposed increase in Contractor Registration
Fees in the Construction Code Fund budget. 

Whereas, The Construction Code Fund has a projected fund
balance of $880,000 at the end of FY 2010; and  

Whereas, The Council desires to encourage continued
employment in construction and renovation; and 

Whereas, The recommended budget included an increase in
Contractor Registration Fees, which would raise $20,000 in
revenues. 

RESOLVED, That the fee increase of $20,000 be removed from
the Construction Code Fund revenue budget and “Use of Prior
Years Fund Balance” be used as the source of funds to
offset this change in the Construction Code fund budget. 

Sponsored by:  Council Members Briere and Kunselman 
 

Amendment 5 –

Eliminate General Fund Planning and Development budgeted
fee increases of $75,000 for rental housing inspection fees
and planning fees. 

Whereas, Planning fee increases of $25,000 were included in
the proposed FY 2011 General Fund Planning & Development
revenue budget, and these fees were increased two years
ago; and 

Whereas, Rental Housing Inspections fee increases of
$50,000 were included in the proposed FY 2011 General Fund
Planning & Development revenue budget, and these fees were
increased last year; and 

Whereas, Both planning and inspection fees increase the
cost of construction and renovation projects in Ann Arbor; 


RESOLVED, That these fee increases of $75,000 be eliminated
in the General Fund Planning & Development budget, and this
reduction of revenues be offset by Use of Prior Year Fund
Balance. 

Sponsored by:  Council Members Briere and Kunselman 
 

Amendment 6 –

Decrease Tax Administration Fee Revenue 

Whereas, The Tax Administration Fee is a fee imposed to
offset costs incurred by a collecting unit in assessing
property values, collecting the property tax levy, and the
review and appeal processes; and 

Whereas, The General Fund Tax Administration Fee revenue
prior to the adoption of the 2007-2008 budget was
approximately equal to .81% of the projected tax
collections; and 

Whereas, R-200-5-07 Approved as amended (RESOLUTION TO
ADOPT ANN ARBOR CITY BUDGET AND RELATED PROPERTY TAX
MILLAGE RATES FOR FISCAL YEAR 2008) increased the General
Fund Tax Administration Fee to the maximum percent allowed
by State law, 1.0%; and 

Whereas, Such increase to the General Fund Tax
Administration Fee was not requested by the Administrator’s
proposed Fiscal Year 2008 budget submitted to Council; and 

Whereas, The property owners of Ann Arbor would benefit
from a reduction in the General Fund Tax Administration Fee
to the level of .81% of the projected tax collections, the
rate prior to Fiscal Year 2008 adopted budget. 

RESOLVED, That the Tax Administration Fee be reduced to the
.81% of tax collections; 

RESOLVED, That the General Fund Finance and Administrative
Services revenue budget be decreased by $453,000, to
reflect the change in the Tax Administration Fee, and this
recurring revenue decrease be offset for FY 2011 by Use of
Prior Years Fund Balance from the General Fund.  

Sponsored by:  Council Member Kunselman 

Amendment 7 –

Eliminate Loading Zone Permit Fees and increase Fines for
parking in loading zones. 

Whereas, The Loading Zone Permit program was established in
FY 2010 and resulted in complaints to the DDA and Council;
and 

Whereas, The City and DDA have a vested interest in
encouraging downtown business activity; and 

Whereas, The Council desires to eliminate the Loading Zone
Permit program; and 

Whereas, $20,000 was budgeted for Loading Zone Permit Fees
in the General Fund revenue budget; and 

Whereas, An approved increase to the fine for parking in a
loading zone from $25 to $45 would raise an estimated
additional revenue of $25,700. 

RESOLVED, That Council directs staff to pursue the
elimination of the Loading Zone Permitting program; 

RESOLVED, That the General Fund revenue budget be amended
to reflect the elimination of the $20,000 Loading Zone
Permit Fees, and the Parking Fines revenue budget line be
increased by the $25,700 estimate. 

Sponsored by:  Council Members Smith and Hohnke