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City Manager Ed Koryzno said he doesn’t plan to present any personnel cuts to City Council Thursday.
In his budget presentation to City Council last month, Koryzno presented two options to resolve an anticipated $463,000 drop in revenue next year. He said cuts could come out of the fire and police departments, or out of City Hall.
However, Koryzno said today that he plans to present Council with a plan to cut some expenditures next year instead, which would bide time for City Council to evaluate where the personnel cuts will come from the following year.
“All it is, is a delay,” Koryzno said. “It’s clear cuts are going to be necessary.”
He said the extra time will be used to allow Council on opportunity to prioritize cuts and allow the police department time to await the result of a federal grant it has applied for. Koryzno said the city expects to hear back on the grant by September.
Koryzno said he did not present this plan to Council last month because he “wanted to sensitize Council and the public” to the budget situation. At the meeting last month he presented the scenarios Those in light of an anticipated 7.9 percent loss in revenue next year due to a reduction in taxable value.
The first option would have eliminated a currently vacant road patrol position at the police department, the police chief’s secretary and three firefighters. The second option would have would eliminated the building secretary position at City Hall, move the assessor to part-time and move to a four-day work week for City Hall staff. The loss of a day would have meant a 20 percent reduction in pay for all staff.
Instead, Koryzno will present a budget that provides no increase to funding the Ann Arbor Transportation Authority for service, reducing payments to the Other Post Employment Benefits account and holding off on a $150,00 project to install a fire suppression system at the Ypsilanti Department of Public Services building.
He said the $318,000 in savings is coupled with a revenue projection that raises state-shared revenue income and allots for an increase in anticipated tax captures. Koryzno said the city still predicts a drop in state-shared revenue, just a smaller drop.
“It’s still a conservative budget,” Koryzno said. “It’s just not as conservative as before on the revenue side.”
He said he is still comfortable with the plan.
The presentation will be made on Thursday. City Council will discuss the budget throughout this month, and is expected to make a final decision before July.
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