Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Policy topic
No spam. Unsubscribe anytime.
Ypsilanti council approves rainy-day (budget stabilization) ordinance after debate over thresholds and process
Summary
Council approved on first reading an ordinance that defines triggers and voting thresholds for tapping the city's budget stabilization fund, including revenue-decline criteria and a special two-thirds (5-of-7) vote for unspecified emergency uses; members asked staff to add a clearer preamble and withdrawal procedures.
YPSILANTI, Mich. — The city council approved the first-reading of Ordinance No. 14-56, formalizing the budget stabilization ("rainy day") fund and the conditions under which the city could use it.
Council member McLean, who sponsored the ordinance, said the fund already contains roughly $3.4 million and that a target level would be about $5.7 million (roughly three months of revenue). The ordinance describes three objective triggers for accessing the fund — revenue declines certified by the finance director, other revenue shortfalls, and other unforeseen emergencies — and provides that a council vote of five of seven members would be required in cases not otherwise covered.
Council members debated whether the finance director should be the single trigger point, whether a preamble should explain permissible uses and replenishment plans, and how to preserve guardrails against misuse. Councilmember Fellows said legislation should clearly name withdrawal procedures and require written documentation accompanying any request. The council adopted a preamble amendment clarifying that any use would proceed through the normal appropriation process.
The measure passed its first reading by roll call; the ordinance will return to a subsequent meeting for final adoption.
