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Ypsilanti City Council plans to address potentially low emergency fund

Ypsilanti City Hall
Kevin Meerschaert
89.1 WEMU
Ypsilanti City Hall

As officials for the City of Ypsilanti works on its next budget, concerns are being raised regarding its fund balance account.

The fund balance is similar to a “rainy day” fund, which can be used unplanned expenses and emergencies. Most local and state governments like to have one that equals about 17% of revenue.

In Ypsilanti, that works out to about $7.2 million, but future projections show the fund balance down to around $3.3 million, if changes aren’t made.

Ward 2 Councilman Patrick McLean says that would be dangerously low.

“As we head into future years, if we spend that down – think of it as your reserve bank account. If we spend that down too fast, we’re going to find ourselves looking at deficits or expenditure levels that we don’t have a way to pay for in about three or four years.”

The City Council Finance Committee, of which McLean is a member, will be hearing from department heads in the next few weeks before a final budget is voted on in June.

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News Reporter and Host Kevin Meerschaert was a student reporter at WEMU in the early 90s. After another 30 years in the public radio business and stops in Indiana, Maryland, Florida, and New Mexico, Kevin is back to where it all began.
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