Ypsilanti is facing a nearly $1.9 million deficit for the upcoming fiscal year. The City Council is asking the administration to find some savings to reduce the amount of dollars they will need to take out of the city’s Fund Balance.
The city has previously dipped into the reserve fund to balance the budget. But without a change in direction, the Fund Balance could be depleted in a year or two.
The City Council is directing City Manager Andrew Hellenga to recommend $1.1 million in budget reductions. That would reduce the amount coming out of the Fund Balance to $800,000.
Council member Patrick McLean says the city can’t keep holding off making difficult budget decisions.
“The heavy lift will be actually making reductions or making adjustments that the whole group can agree upon or at least the majority can agree upon to get there.”
One of the biggest financial concerns the city deals with is rubbish. The sanitation millage is currently not raising enough dollars to cover the costs of the current contract.
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