Ann Arbor administrator unveils $637.7 million FY26–27 proposed budget, flags fleet, studies and public‑safety investments

The city administrator presented a proposed fiscal year 26–27 budget to the Ann Arbor City Council, asking the council to consider a total fund proposal of $637,716,788 and a general fund of $146,653,671.

The administrator said the forecast shows a projected increase in real and personal property tax revenue “just under 6%” in the near term, with a longer‑range projection dropping to about 3% by FY2030. He described state shared revenue as “flat,” said parking revenues have returned to pre‑pandemic levels and called the current environment one of “uncertainty” for local governments.

The budget presentation singled out several large items and programmatic priorities. It sets aside more than $8 million for fleet replacements across funds, citing longer delivery times and tariff‑related price increases for vehicles and parts. The administration proposed investing roughly $2 million in studies — including water supply cost‑of‑service, sanitary sewer cost‑of‑service, and other engineering studies — and noted individual studies at about $230,000 each.

The administration requested state and federal grant support for capital projects: $6 million in state funding to install bollards at roughly 21 downtown intersections if awarded; $740,000 in state funds for protective glazing on upper floors of the Justice Center; $12 million in federal funds for Fire Station 3; and $420,000 for Barton Dam security and schematic design. The administrator said Fire Station 4 previously received approval and stressed the city has not built a station since 1981.

On service programs, the presentation highlighted $2.4 million spent this winter on the revised winter operations plan, which added fleet and contractor capacity and expanded downtown clearing. The administrator warned the number could grow substantially in a severe winter and described the winter program as scalable rather than strictly budgeted.

Personnel and organizational changes in the administrator’s package included adding one community standards officer (with a contingency for a second officer if state action yields additional funding), shifting a zoning coordinator from half‑time to 0.75 FTE, adding positions for parks and water utilities, and funding a second solid‑waste supervisor to avoid a single point of failure in that program. The budget also includes money to begin addressing compensation study findings and a $25,000 investment to create employee lactation/decompression spaces in city facilities.

The administrator emphasized maintenance of the city’s bond rating and presented the budget as conservative but flexible: contingencies were inserted to allow additional spending if state revenue or earmarks materialize. He closed by outlining the public process: the administrator’s proposed budget will be released to council and the public, with public hearings scheduled and council action expected at two May meetings.

Ending: Council members asked procedural questions and were invited to submit follow‑up budget questions to staff. The administration said it would return with recommended amendments if required and that the formal public hearings begin at the next council meeting on May 5.