The Ypsilanti City Council passed a resolution Tuesday night 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 proposed 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.
“Well, it’s foundational to have a strong fiscal and financial system for the city. So, that’s really the bottom line. This makes us stronger.”
The current stabilization fund is at about $3.2 million. To reach 91 days, it would have to be raised to about $5.3 million.
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