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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