Ypsilanti looks at $1.4M in budget cuts to address 'dire' financial situation
The city of Ypsilanti's financial picture has never been more dire, with projections that the budget deficit could grow to $5.2 million by 2015 if more cuts aren't made, City Manager Ed Koryzno said Monday night.
To lessen the impact of future budget shortfalls, the city is exploring cuts now.
The Ypsilanti City Council decided Monday night to make more than $1.4 million in budget cuts in 2011 during the first of three goal-setting meetings to discuss ways to balance the city’s budget.
Koryzno presented council members with a five-year budget projection. The city's projections show $14.9 million in projected revenues in fiscal year 2010, and $14.7 million in expenditures.
By fiscal year 2011, expenditures overtake expenses, with $13.1 million coming in and $13.2 going out. The gap widens each year until the deficit could potentially grow to $5,202,868 by 2015.
“The challenge we have is the finances of the state and city have never been more dire,” he said. “We have this looming deficit - the staff needs direction in how to we face it.”
Koryzno presented the council with two possible strategies for easing the budget problems - a choice between making preventative cuts now for the 2011 fiscal year or waiting until the deficit grows to more than $1.4 million in 2012.
By making cuts early, Koryzno said the city would have to cut a total of about $6.2 million through 2015. By waiting, the cuts would total more than $8 million by 2015.
“Do we cut sooner than we absolutely have to to accrue savings or do we wait?” he asked.
Most council members said they support making preventative cuts, though none were excited about the choices to be made.
“It’s a painful time,” Mayor Paul Schreiber said. “Our job is to try to do the best with what we have.”
Koryzno asked council members to review last year’s goals and reassess its priorities for next year. Though no official decisions were made, he said public safety - which makes up 55 percent of the city’s budget - will have to face cuts.
“Choices are narrowing in reducing personnel,” he said.
Koryzno said he will present council members with options on where to make those cuts at its next meeting on Dec. 7.
Residents who attended the meeting noted their support of their local government, but expressed concerns about the future of their city.
Ypsilanti resident Bob Levy said the police and fire department are crucial to keeping the city a place where people want to live.
“If you don’t fund these guys, the next crook on the street could be going after you,” he said. “Quality of life is key.”
Hui Li, a political science professor at Eastern Michigan University, said she thought the meeting was a good start to future decisions.
“I think it was a very good conversation tonight,” she said. “I think the next step is how to cut the budget. There needs to be a lot of compromise, I think it’s going to be really hard.”
The city released this chart showing projected revenue and expenditures.
Erica Hobbs is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
Harold Baize
Sat, Mar 6, 2010 : 8:33 p.m.
I agree it wouldn't have happened under HRP. We knew how to balance a budget. But please, ghost of me. I'm not dead. Please stop using my name. Harold Baize
thinkplease
Thu, Nov 12, 2009 : 8:25 a.m.
I agree with Mr. Levy. In these situations the public is always forced to draw the short straw as governments find public safety the most convenient areas to cut. But quality of life is absolutely key, and the increasing crime rates will only cause more people to leave while fewer people will chose to risk their safety by coming in. In my opinion, it is quite clear what a cut to the FD and especially the Police would accomplish; a lower quality of life as parasitic criminals find even less resistance.
Ypsidweller
Wed, Nov 11, 2009 : 10:22 a.m.
I second that Ben.
BenWoodruff
Tue, Nov 10, 2009 : 8:38 p.m.
Until Koryzno apologizes for the disaster that is the Water Street project, he should shut up.
AndyYpsilanti
Tue, Nov 10, 2009 : 5:06 p.m.
Boy, it's a good thing that Ypsi City Council voted to take back the control, and expense, of caring for Riverside and Frog Island parks from the Depot Town Community Development Corp. I mean, what possible advantage could there have been to having more than $22,000 off the city books a paid by for a 501c3 nonprofit, right? What a stroke of genius. A blown call of the highest order. And now, considering the way the CDC was treated at the hands of some council members, what group in their right minds would want to help out the city in that kind of capacity again? That was a golden budget cutting opportunity, and the city wasted it over what? A word. The name of a music festival. I've been told that I should let this issue go. That it is in the past. But with a looming, multi-million dollar deficit, I think it's fair to look at this kind of financial blunder, and to ask how council could be so petty and short sighted.
BTaylorson
Tue, Nov 10, 2009 : 11:46 a.m.
When will the City of Ypsilanti and Ypsilanti Township face reality and merge? The waste from having salaries for two chief executives, two treasurers etc. would make a significant dent in the budget deficit. A streamlined government may even be able to attract viable businesses and lessen the tax burden on those folks who remain and are able to contribute to the common good.
DonaldTheUUGeek
Tue, Nov 10, 2009 : 11:38 a.m.
And yes, I say that as an Ypsi Township resident
DonaldTheUUGeek
Tue, Nov 10, 2009 : 11:32 a.m.
The city needs to start taking over the township and increasing the tax base to the city, and reduce the burden on the County that the township causes.
dading dont delete me bro
Tue, Nov 10, 2009 : 11:14 a.m.
ypsilanti has a top notch fire department. police services are good too. in reality, these guys (gals) don't make big money. in an economy like today, crime is high. we need police and don't compromise the fd.
logo
Tue, Nov 10, 2009 : 11:11 a.m.
Cities across Michigan are going down the tubes. Ypsi has done a good job coping with the crisis. Like Ann Arbor they have a large state institution that does not pay taxes. Ypsi's taxes are already high, quite a bit higher than A2 so they can't ask for an increase, they will just have to keep cutting.
Hemenway
Tue, Nov 10, 2009 : 10:21 a.m.
The government needs to smaller, now is the time.