The Ypsilanti City Council tonight will hold a public hearing and first vote on when to dip into its Budget Stabilization Fund.
The fund was first established in 2024. It currently has about $3.4 million set aside for financial emergencies. The target is to eventually have three months of revenues in the fund. That works out to about $5.7 million.
Ordinance co-sponsor Patrick McLean says it’s something all government entities should have.
“This is simply just to prepare in cases of economic downturn or revenue shortfall. This allows us to keep basic operations going. And so, I think this is really part and parcel of a basic component of good fiscal management.”
Under the proposed guidelines, dollars can be drawn from the fund if projected tax revenue drops 6% or more in a given year. It can also be used during a recession, a sharp drop in state funding, or a supermajority vote of the Council.
Non-commercial, fact based reporting is made possible by your financial support. Make your donation to WEMU today to keep your community NPR station thriving.
Like 89.1 WEMU on Facebook and follow us on X (Twitter)
Contact WEMU News at 734.487.3363 or email us at studio@wemu.org
