Ann Arbor’s city council discussed its budget proposal for fiscal year 2021 last night and how COVID-19 will impact it.
The interim city administrator told council COVID-19 could impact the budget for the next two fiscal years, by five to ten million dollars. The city is still trying to determine what that means for the overall $400 million budget. Council Member Chip Smith from the fifth ward says reserve funds may be used to address budget issues.
"We want to be prudent in that we don’t want to spend all of our reserves in the first year or two dealing with these impacts. There’s a reason why we have about $16 million held in reserve."
The city is currently generating less revenue during the pandemic because they’re not collecting fees from services like parking and park facilities.
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— Jorge Avellan is a reporter for 89.1 WEMU News. Contact him at 734.487.3363 or email him firstname.lastname@example.org