The Ypsilanti City Council tonight is expected to vote on a resolution to increase the target for its budget stabilization, or “rainy day” fund.
Ypsilanti’s current stabilization fund has about 51 days of general fund revenue on hand in case the city is hit by a sudden financial crisis. 2nd Ward Council Member Patrick McLean says he wants to establish a goal of 91 days instead.
The Government Finance Officers Association recommends municipalities have at least two months of revenue set aside.
McLean says they suggest even more for a city like Ypsilanti that is highly dependent on property tax revenue.
“That’s all that says tonight. It doesn’t put anymore into it, into the fund. That may come later. I hope that will come later. But for right now, it’s simply setting a target.”
The City Council will also be holding a closed session at the beginning of the meeting to discuss the pending litigation against the owners of Arbor One Apartments.
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