Ann Arbor City Council approves Fiscal Year 2027 budget

The Ann Arbor City Council on Monday, May 18, approved the City of Ann Arbor’s Fiscal Year 2027 budget, advancing investments in public safety, climate action, housing, transportation, human services, planning and economic development.

The adopted budget includes approximately $650 million in total city expenditures and supports 894 full-time equivalent positions.

“This budget reflects Ann Arbor's values and honors your tax dollar. This budget reflects our commitment to building a community that is safe, sustainable, welcoming and prepared for the future,” said Mayor Christopher Taylor. “By investing in public safety, roads, housing, water, parks, climate action, elections, planning and services for our most vulnerable residents, we are aligning our resources with the values and priorities our community has consistently expressed. As always, our budget is balanced. Recurring expenses align with recurring revenue. Our bond rating remains AAA.”

Budget highlights

The budget for Fiscal Year 2027, which begins July 1, includes investments in several key community priorities:

Support for the Sustainable Energy Utility: The budget provides additional support for the Ann Arbor Sustainable Energy Utility, which recently installed its first residential solar panel and battery storage systems and is expected to have significant customer growth in the coming year. The SEU was allocated $3 million dollars from the Climate Action Millage, $2 million from the expected sale of a city-owned surface parking lot on Ashley Street, and $1 million in recurring General Fund support, to help advance clean-energy implementation.

Addition of three firefighters: The budget adds three full-time firefighter positions. The positions are intended to help reduce the use of mandatory overtime, support firefighter wellness and strengthen emergency response capacity.

Investment in the Police Department: The budget adds one police officer position, supporting the Ann Arbor Police Department’s ability to respond to community needs. The budget also allocates $2 million for a modern police records management system.

Funding for Comprehensive Land Use Plan implementation: The budget includes $325,000 to support implementation of the city’s Comprehensive Land Use Plan, helping move the adopted vision for future land use, housing and community development into action. The funds will be used to hire people who are experts on comprehensive plan implementation to aid the city’s planning department staff.

Continued support for housing and human services: The budget is expected to provide approximately $15.7 million for social services, including continued support for the Ann Arbor Housing Commission ($12.8 million) and the Shelter Association of Washtenaw County ($222,000). Social service investments include $700,000 for the Rising Hope for Housing program, which helps people who have Housing Choice Vouchers and are justice-impacted by offering them services that will help them stay in their homes.

Support for improving development processes: The budget supports the Economic Development Office’s work to improve the city’s processes for reviewing proposed development projects before they are approved and built. The budget sets aside $65,000 for an expert development review consultant.

Tens of millions for roads: In all, Ann Arbor is estimated to spend more than $30 million on road improvements for safer streets for all road users, including pedestrians and bicyclists. These dollars will be used for resurfacing and reconfiguring roads in line with Ann Arbor’s goal of eliminating crashes that lead to death or serious injury.

Support for unarmed crisis response: The budget supports the establishment of an unarmed crisis response program with roughly $1.35 million, moving the city toward having a system for non-police professionals to respond to behavioral health crisis calls. 

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Media Contact: 

Steve Kilar, Communications Director, skilar@a2gov.org