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City council holds first reading of three-year budget, asks manager for deficit-cut options
Summary
Ypsilanti council completed first reading of Ordinance 14‑64 (FY2026–28 budget), heard departmental presentations and public comment, and directed the city manager to present packages of spending and revenue options to cut a projected $1.9 million shortfall toward an $800,000 target.
YPSILANTI — The Ypsilanti City Council held the first reading Tuesday of Ordinance 14‑64, the proposed fiscal-year 2026–28 budget, after a night of departmental presentations and public comment. Council opened a public hearing on the budget and then closed it before moving the ordinance forward to a scheduled second reading next month.
The city manager, Orlando, opened the budget discussion with council priorities of Water Street remediation, public infrastructure (roads, bridges and sidewalks), public restrooms and public spaces, youth engagement and a proposed unarmed response team. Orlando told council the city has already allocated $300,000 from Fund 205 toward public restrooms and is advancing an RFQ and bid review process for Water Street remediation.
During public comment, a resident urged the council not to strip funding from the police budget, saying the police department "serves with dignity and respect" and asking that "nothing be extracted from his budget" for Police Chief Timothy Anderson. Council members heard comments from other residents and community partners on events, senior-center parking and housing programs.
Finance director Reagan summarized the finance department's structure and said investment returns since 2023 have improved the city's earnings but cautioned that the proposed budget contains a structural gap. Administration staff estimated a roughly $1.9 million shortfall for the next budget year after accounting for current revenues and planned transfers to capital funds.
Council members debated approaches to address the shortfall and voted to ask the city manager to prepare multiple reduction scenarios. Council member Fellows introduced a nonbinding resolution setting a target to reduce the deficit to about $800,000 — a $1.1 million reduction from the administration's $1.9 million figure — and requested that staff deliver an itemized list of potential cuts and revenue options at several dollar levels for council consideration.
City manager Orlando told council staff would examine operations, contractual services, supplies, revenue assumptions and the timing of capital transfers and bring back tiered options (for example, packages sized at $300,000, $500,000 and $1.1 million) so council can weigh trade-offs. Orlando also noted some one-time savings are likely in the current year because of vacant positions in police and DPW that will lower the immediate draw on fund balance.
The ordinance for the budget (Ordinance 14‑64) was read on first reading. Council members voted to extend the meeting to allow continued discussion and to schedule the ordinance second reading and adoption for the upcoming meeting cycle. Staff emphasized that many capital projects are funded by grants and that any adjustments to appropriations will be provided to council in the follow-up materials.
What happens next: staff will deliver scenario packages and a line-by-line set of options for council review before the second reading; the council will decide which combination of reductions and revenue options to adopt as it moves toward a final budget vote.
