Summary

Council adopts FY2027 budget and fees

Ann ArborMay 18, 20263 min read

At a glance

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Ann Arbor City Council approved the FY2027 budget and related property tax millage rates, enacted changes to the Sustainable Energy Utility rate schedule (ORD-26-13), approved multiple departmental fee adjustments and new cemetery fees, authorized grants and easements including a $4.3M subgrant package, and approved a limited-time electric vehicle rebate initiative and continued city interventions in DTE rate cases.

Projects mentioned

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Planned Unit Development Ann Arbor Housing Development The Ashley Mews Development Downtown Development Michigan Economic Development

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City Council

Topics discussed

LaborTransportationBudget & TaxPublic SafetyEducationEnvironmentalHousingUtilities

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What this means

The council approved the city’s budget for the next fiscal year and set the property tax millage rates, which determine how much property owners will be taxed to fund city services. The council also changed an energy utility rate schedule and approved new or adjusted fees for fire, public services, parks and the cemetery, which may affect some service charges you pay. The city authorized grant funding for housing and transportation partners, approved event street closures, and backed an electric vehicle rebate program to help with fuel costs.

Key decisions

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Adopted FY2027 City budget and related property tax millage rates (Enactment No: R-26-196; approved as amended)
Adopted ordinance amending Sustainable Energy Utility rate schedules (ORD-26-13)
Approved limited-time electric vehicle rebate initiative to help abate rising fuel costs (Enactment No: R-26-190)
Confirmed support for the City’s ongoing interventions in DTE Electric and DTE Gas rate cases before the MPSC (Enactment No: R-26-189)
Approved $4,300,000 grant agreement with Michigan Economic Development Corporation and sub-grants with Ann Arbor Housing Development Corporation and AAATA (Enactment No: R-26-184)
Approved FY2027 fee adjustments for Ann Arbor Fire Department, Public Services, Community Services (parks), and new fees for Fairview Cemetery (Enactment Nos: R-26-192, R-26-193, R-26-194, R-26-195)
Approved MDOT and Amtrak agreement for the East Medical Center Drive Bridge (Enactment No: R-26-178)
Accepted sidewalk and public access easements at 333 E. William Street (Enactment Nos: R-26-182, R-26-183)
Reappointed and appointed members to multiple advisory commissions including Greenbelt Advisory Commission and Sustainability Commission (Enactment Nos: R-26-185, R-26-186) and reappointments to the Independent Community Police Oversight Commission (Enactment No: R-26-187)
Approved multiple street closures for community events and parades (various consent items; Enactment Nos: R-26-174 through R-26-177)

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Meeting information

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City Council

May 18, 2026, 12:00 AMLarcom City Hall, 301 E Huron St, Second floor, City Council Chambersscheduled

This meeting will be broadcast live on CTN Cable Channel 16, ATT Channel 99, and online at a2gov.org/watchCTN To sign up for public comment, call the City Clerk's Office between 8am - 5pm at 734-794-6140 on the day of the meeting.

Agenda

Public commentary can be made in person or by calling Zoom at: 877-853-5247 or 888-788-0099 Enter Meeting ID 942 1273 2148 or online at a2gov.org/CouncilZoom
CALL TO ORDER
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
ROLL CALL OF COUNCIL
APPROVAL OF AGENDA
COMMUNICATIONS FROM THE CITY ADMINISTRATOR
INTRODUCTIONS
Downtown Development Authority (DDA) Update
PUBLIC COMMENTARY (3 MINUTES PER SPEAKER, 45 MINUTES TOTAL)* *WHEN MORE THAN 30 SPEAKERS HAVE SIGNED UP TO SPEAK AT A COUNCIL MEETING, EACH SPEAKER SHALL BE GIVEN 2 MINUTES TO SPEAK AT THAT MEETING * (SPEAKERS ARE NOT PERMITTED TO GRANT THEIR RESERVED TIME TO AN ALTERNATE SPEAKER) * ACCOMMODATIONS CAN BE MADE FOR PERSONS NEEDING ASSISTANCE WHILE ADDRESSING COUNCIL TO PARTICIPATE ONLINE, CALL ZOOM AT: 877 853 5247 or 888 788 0099 ENTER MEETING ID 942 1273 2148 PHONE CALLERS CAN PRESS *9 TO RAISE HANDS AND *6 TO UNMUTE THEIR PHONES WHEN CALLED UPON TO SPEAK.
Agenda Response Memo and eComments - May 18, 2026
Resolution to Approve a Construction Contract with Fonson Company, Inc for the Packard Water Main at Malletts Creek Project (RFP 26-20; $821,178.15)
COMMUNICATIONS FROM COUNCIL
COMMUNICATIONS FROM THE MAYOR
Reappointments - Confirmations
Appointments - Confirmations
CONSENT AGENDA
Resolution to Approve an Agreement with the Michigan Department of Transportation (MDOT) and National Railroad Passenger Corporation (Amtrak) for the East Medical Center Drive Bridge
Resolution to Approve a Purchase Order with Cogsdale Corporation for Annual Software Maintenance and Support for FY 2027 ($176,283.21)
Resolution to Approve the Public Defender Services Contract with Washtenaw County ($207,517.16)
Resolution to Approve the Closing of Streets for the 2026 Glacier Highlands Neighborhood Association Annual Memorial Day Parade, Monday, May 25, 2026
Resolution to Close N. Fourth Avenue and E. Ann Street for the 29th Annual African-American Downtown Festival, Friday, June 5, 2026 to Saturday, June 6, 2026
Resolution to Approve the Closing of Streets for the In Step with Sam 5K on Sunday, June 7, 2026 from 8:00 A.M. until 10:00 A.M.
Resolution to Approve Street Closing for The Event on Main from 5:00 P.M. on Wednesday, June 17, 2026 through 6:00 A.M. on Friday, June 19, 2026
PUBLIC HEARINGS (3 MINUTES PER SPEAKER) FOR ZOOM MEETINGS, PHONE CALLERS CAN PRESS *9 TO RAISE HANDS AND *6 TO UNMUTE THEIR PHONES WHEN CALLED UPON TO SPEAK.
An Ordinance to Amend Sections 2:402, 2:408, and 2:410 and to Add Section 2:413 (Rate Schedules) to Chapter 35 (Sustainable Energy Utility) of Title II (Utilities and Services) of the Code of the City of Ann Arbor (ORD-26-13)
APPROVAL OF COUNCIL MINUTES
Work Session of April 27 and Regular Meeting Minutes of May 4, 2026
ORDINANCES - SECOND READING
An Ordinance to Amend Sections 2:402, 2:408, and 2:410 and to Add Section 2:413 (Rate Schedules) to Chapter 35 (Sustainable Energy Utility) of Title II (Utilities and Services) of the Code of the City of Ann Arbor (ORD-26-13)
ORDINANCES - FIRST READING
New Business - Staff:
An Ordinance to Amend Chapter 55 (Zoning), Rezoning of 1.98 Acres from PUD (Planned Unit Development District) to PUD (Planned Unit Development District), The Ashley Mews Development PUD Zoning and Supplemental Regulations, 414 South Main Street (CPC Recommendation: Approval - 7 Yeas and 0 Nays)
MOTIONS AND RESOLUTIONS
Resolution to Reappoint Elizabeth Riggs, Julius Buzzard, and Jason Boggs to the Greenbelt Advisory Commission (7 Votes Required)
Resolution to Reappoint Jonathan Overpeck, Sarah Nedrich, Brooks Curtis, Mobin Mazloomian, Mallika Kothari, and to Appoint Gillian Miller and Anuja Rajendra to the Sustainability Commission (7 Votes Required)
Resolution to Reappoint Patricia Manley and Erica Liu to the Independent Community Police Oversight Commission
Resolution to Reappoint Non-registered Electors to Ann Arbor Boards and Commissions (7 Votes Required)
New Business - Council:
New Business - Boards and Commissions:
New Business - Staff:
CLOSED SESSION UNDER THE MICHIGAN OPEN MEETINGS ACT, INCLUDING BUT NOT LIMITED TO, LABOR NEGOTIATIONS STRATEGY, PURCHASE OR LEASE OF REAL PROPERTY, PENDING LITIGATION AND ATTORNEY/CLIENT PRIVILEGED COMMUNICATIONS SET FORTH OR INCORPORATED IN MCL 15.268 (8) (1) (C), (D) (E), AND (H).
CLERK'S REPORT OF COMMUNICATIONS
The following communications were referred as indicated:
The following minutes were received for filing:
City Planning Commission Meeting Minutes of March 3, 2026
Renters Commission Meeting Minutes of March 19, 2026
Park Advisory Commission Meeting Minutes for March 17, 2026
Council Policy Agenda Committee Meeting Minutes of March 23, 2026
COMMUNICATIONS FROM THE CITY ATTORNEY
PUBLIC COMMENT - CONTINUED (3 MINUTES EACH - IF NECESSARY) *THIS SECTION IS FOR SPEAKERS WHO SIGNED UP FOR PUBLIC COMMENTARY BUT WERE UNABLE TO SPEAK AT THE BEGINNING OF THE MEETING DUE TO THE 45-MINUTE TIME LIMIT. FOR ZOOM MEETINGS, PHONE CALLERS CAN PRESS *9 TO RAISE HANDS AND *6 TO UNMUTE THEIR PHONES WHEN CALLED UPON TO SPEAK.
ADJOURNMENT
COMMUNITY TELEVISION NETWORK (CTN) COMCAST CHANNEL 16, AT&T CHANNEL 99:
LIVE: MONDAY, MAY 18, 2026 @ 7:00 P.M. REPLAY: FRIDAY, MAY 22, 2026 @ 8:00 P.M.
REPLAYS SUBJECT TO CHANGE WITHOUT NOTICE
Community Television Network live televised public meetings are also available to watch online live and on-demand from CTN’s website, www.a2gov.org/watchctn <http://www.a2gov.org/watchctn>, on “The Meeting Place” page (http:www.a2gov.org/livemeetings). Cable: Comcast Cable channel 16 or AT&T UVerse Channel 99 Videos are also available for a nominal fee by contacting CTN at (734) 794-6150.
All persons are encouraged to participate in public meetings. Citizens requiring translation or sign language services or other reasonable accommodations may contact the City Clerk's office at 734.794.6140; via e-mail to: cityclerk@a2gov.org; or by written request addressed and mailed or delivered to: City Clerk's Office 301 E. Huron St. Ann Arbor, MI 48104 Requests made with less than two business days' notice may not be able to be accommodated.
A hard copy of this Council packet can be made available upon request during regular business hours.
Unfinished Business - Council:
Resolution to Approve Fiscal Year 2027 Fee Adjustments for the Ann Arbor Fire Department
Resolution to Approve Fiscal Year 2027 Fee Adjustments for the Public Services Area
Resolution to Approve FY 2027 Fee Adjustments for the Community Services Area
Resolution to Approve New Fees for Fairview Cemetery
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027
Risk Funds Claims Report - April 2026
Communication from Michigan Department of Environment, Great Lakes, and Energy (EGLE) Regarding the Issuance of Permit No. MIG760104 - Ann Arbor Public Services - Sustainability
Resolution to Amend a General Services Contract with Farmer & Underwood Trucking, LTD. for Aggregate Materials and Hauling Services for Excavation and Street Sweeping Waste, ($49,841.00 Increase, Total Contract Not to Exceed $399,841.00 Annually)
Resolution to Accept a Sidewalk Easement at 333 E. William Street from Core Ann Arbor William, LLC (8 Votes Required)
Resolution to Accept a Public Access Easement at 333 E. William Street from Core Ann Arbor William, LLC (8 Votes Required)
Resolution to Approve a Grant Agreement with the Michigan Economic Development Corporation and to Approve and Authorize Execution of Sub-Grant Agreements with the Ann Arbor Housing Development Corporation and the Ann Arbor Area Transportation Authority and Appropriate Grant Funding ($4,300,000.00) (8 Votes Required)
Resolution to Confirm Support for the City’s Ongoing Interventions in DTE Electric and DTE Gas Rate Cases and Other Key Cases Before the MPSC Impacting Ann Arbor Residents
Resolution to Support Launch of Limited-Time Electric Vehicle Rebate Initiative to Help Abate Rising Fuel Costs (8 Votes Required)
Resolution Expressing Concern with the University of Michigan’s Potential Acquisition of Concordia University Property
Communication from Michigan Department of Environment, Great Lakes, and Energy (EGLE) Regarding the Issuance of Permit No. WRP048825 v.1 - Ann Arbor Public Services - Sustainability
Adam Grant - Support for Rising Hope for Housing (DS-5) (in person)
Sam Homan - Electric Vehicle Rebate Initiative (DC-6) (in person)
LaQuan Hill - Rising Hope (DS-5) (in person)
David Kastner - AFSCME Union Contract (in person)
Logan Stolly - AFSCME Contract Negotiations (in person)
Timothy Hull - Detours and Their Impacts on Bus Routes (phone)
Paul Seyfarth - AFSCME Contract Negotiations (in person)
Blaine Coleman - We are against military aid to Israel (in person)
Jeremy Haley - Ann Arbor South and Concordia (DC-7) (in person)
City Administrator’s Report - May 18, 2026
Memorandum in Response to R-26-042 - Resolution Reaffirming and Expanding the City of Ann Arbor's Policy Regarding Civil Immigration Enforcement and Mitigating Erratic Lawless Tactics with Intentional City Efforts - May 18, 2026
Agenda Item
Passed on consent agenda
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027
Passed on consent agenda

Council adopts FY2027 budget and fees

At a glance

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