FY 2022 Budget
Per the City Charter (Section 8.6), City Council is tasked with adopting the City's Budget by our 2nd meeting in May. This year, that’s Monday, May 17th. Throughout the spring we have received presentations from City Departments and Tom Crawford, our City Administrator, presented Council with a recommended fiscal year 2022 budget on April 19. Our responsibility as Council is to not just to adopt a balanced budget, but to make sure we're using our limited resources to advance our top priorities in a manner that produces the greatest positive impact in our community and reflects our core values.
We were fortunate that our City entered the pandemic in a sound financial position, but our City Administrator has warned us that Ann Arbor is now in a much more vulnerable position. Mr. Crawford informed Council that "unless the local economic recovery occurs faster than anticipated, reductions in services or new sources of revenue will be needed for long-term stability." This warning has lead me to scrutinize recurring expenses more deliberatively, while also looking for opportunities to utilize funding more effectively to improve our infrastructure. As an editorial in Governing magazine noted in January, "our nation needs to invest heavily [in infrastructure projects] and strategically with environmental impacts in mind."
As such, I am considering introducing five budget amendments that I believe will better align budget with our community priorities within the confines of our constrained budget. You can view all of the budget amendments drafted by Councilmembers here. It’s important to note that these amendments were prepared by Councilmembers, it's possible some won't be introduced. However, by viewing them you can get a better sense of what we are likely to be considering and discussing on Monday night. You will notice that many potential budget amendments discuss a similar issue —use of General Fund revenue for the deer cull. The Open Meetings Act requires that Councilmembers don’t discuss Council work with a quorum of members, so duplicative efforts can sometimes occur. The Administrator’s budget proposes allocating $120,000 to the deer cull. This project remains controversial both in the community and among Council members and with limited discretionary funding there are ongoing debates about how this funding should be used and the merits of this program.
The five amendments I’m sponsoring or cosponsoring focus on:
Funding the 2021 Healthy Streets program ($353,973 + from Major and Local Streets Fund balance). Council authorized funding for program design, but narrowly (7-4) voted down a FY21 budget amendment to the Major and Local Street Fund budgets. Mid-year budget amendments require 8 votes. The 2021 Healthy Streets program would: 1) Fill bike lane infrastructure gaps on Packard in two locations (permanent installations), 2) Pilot bike and pedestrian infrastructure improvements on S. Main between William and Stadium to see inform future investments in the area, 3) deploy 34 Neighborhood Slow Streets installations to provide more space for social distancing this summer (still incredibly important for families with young children) and address persistent speeding issues in neighborhoods Staff proposed these projects utilizing Major and Local Street Fund balances in FY21. Since this project was not approved using FY21 funds, the fund balances still support this work. Staff worked diligently to solicit community input. Survey results demonstrate ongoing public support for this program. I am cosponsoring this budget amendment with Mayor Taylor.
Funding Preliminary Physical Plan for the Center of the City ($40,000 from General Fund- revenue neutral): In November 2018 Ann Arbor voters approved Proposal A, which amended the City Charter by adding a Charter Amendment for the “City-Owned Public Land Bounded by Fifth Avenue, William, Division, and Liberty Streets to be Designated, in Perpetuity, as an Urban Park and Civic Center Commons to be Known as the "Center of the City””. Through the Center of the City Task Force, a vision for the space began to develop. This plan was presented to Council in February of 2020. It’s time to take the next step with the community and develop a preliminary physical plan for the space. Given the tight budget, I sought to make this work revenue neutral. The Administrator’s budget proposes allocating $100,000 for a community discussion on housing policy, centered around the history of single family zoning. I agree that it’s critical to understand and discuss race and equity in the context of housing policy. I have been assured by City staff that we can still have a robust and meaningful community discussion with a $60,000 budget. So I am proposing to reallocate $40,000 of planning funding to support this Center of the City planning initiative.
Funding for Developing a Traffic Calming Program for Major Streets and for Infrastructure to Improve Pedestrian Safety (County Mental Health Rebate Funds allocated to Pedestrian Safety -revenue neutral): This budget amendment reallocates funding to support different initiatives that will enhance pedestrian safety than those identified in the Administrator’s budget. Per Council policy, 20% of the County Mental Health Millage rebate funds are allocated to improving pedestrian safety. In FY22, this is $500,000. The proposed FY22 budget recommends utilizing these funds as follows: $135,000 for uncontrolled crosswalk lighting needs, $232,000 for existing street light replacements, and $133,000 for pedestrian safety outreach and education. While street light replacements and education are important, they aren’t the top priorities in our draft Comprehensive Plan. The plan identifies the following targets to address dangerous behaviors and improve pedestrian safety: 1) adopt a major street traffic calming program within two years, 2) install 10 curb extensions per year, 3) install 5 centerline hardening/slow turn wedge treatments per year, but funding for these initiatives/projects wasn’t incorporated into the draft FY22 budget. This budget amendment seeks to align our budget with our plan targets by reallocating funds as follows:
$135,000 for uncontrolled crosswalk lighting needs
$100,000 for traffic calming on major streets analysis (TR-AT-22-24 in CIP FY22)
$150,000 for curb extensions and centerline hardening/slow turn wedge treatments
$100,000 for existing street light replacements
$15,000 for communications explaining pedestrian safety related infrastructure projects
Funding to Amend the Major Street Fund Budget to develop a Transportation Plan Implementation Strategy and Three Quick Build Safety Projects ($300,000 + Major Streets Fund Balance): This budget amendment seeks to align the use of our Major Streets funds with the targets identified in our draft Comprehensive Transportation Plan and approved Capital Improvements Plan. In January 2021, the Planning Commission approved the FY2022-FY2027 Capital Improvements Plan which included $150,000 in FY22 for developing a Transportation Plan Update Implementation Strategy (TR-AT-22-21) and the Comprehensive Transportation Plan sets a short-term strategy target “to develop plans for safety improvements on all Tier 1 corridors and intersections within 1 year”. Further, our draft Comprehensive Transportation Plan recommends a short-term strategy of developing a quick-build improvement program and a target of installing “at least three quick-build safety projects per year, prioritizing focus corridors and intersections”. Funding was not incorporated into the proposed FY22 budget for any of these projects. I don’t want to fall behind the first year after developing a new Comprehensive Transportation Plan. We need to prioritize meeting the targets clearly stated within the plan. Further, investing in planing upfront allows our community to respond quickly when additional funding becomes availability from federal or state funding sources.
Remove 1.0 FTE Chief Strategy Executive Position from the FY22 Safety Services Police Budget (-$158,458 General Fund recurring expense): Councilmember Radina and I drafted this budget amendment and are still considering its merits. When Chief Cox was hired, this Chief Strategy position was one of the positions he identified that was necessary to support transitioning to a community-oriented policing philosophy and approach. As we work to develop an unarmed public safety response model in our community, while contending with a structural budget deficit, CM Radina and I are considering if this is the best time to add a new position into AAPD.
To learn more about the budgeting process, I encourage you to visit this great resource developed by City staff, “The Citizen’s Guide to Finance and Budgeting.”