Ann Arbor’s revenue numbers are looking for the upcoming fiscal year, but city officials say some problems may be on the horizon.
Ann Arbor Chief Financial Officer Marti Praschan told the City Council this week that revenues from real and personal property taxes are expected to jump 6% or about $3.2 million for Fiscal Year 2025, but they will drop to 3% annually for the next several years.
She says while the coming year is projected to have a surplus of about $2.3 million, expenditures will surpass income by 2027.
“This is a situation that we will be looking to solve for in subsequent cycles and cautions us from adding any recurring expenditures without appropriate revenue offsets or reduction in expenditures.”
Praschan says expenditures could out pace revenue by almost $6 million by Fiscal Year 2029.
City Administrator Milton Dohoney will present his budget recommendation to the City Council April 15th.
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