Dharma's Council Newsletter, May 17, 2026
- May 17
- 5 min read
Neighbors,
City Council meets Monday, May 17th at 7 p.m. This meeting includes the adoption of the City's annual budget for Fiscal Year 2027.
FY27 Budget Documents
Staff responses to Council Member questions about the proposed budget
The proposed FY2027 budget converts several long-running policy commitments into operational reality. First, the budget includes major startup support for the Sustainable Energy Utility (SEU), combining Climate Action Millage funds, General Fund support, existing city solar assets, and proposed Kline’s Lot proceeds to move the SEU from voter-approved concept to an operational utility.
Second, the budget includes a significant increase in road funding tied to changes in state transportation policy, with the city expecting approximately $4.5 million in new recurring road revenue from the State. In addition to supporting road resurfacing and capital maintenance, the budget creates a new recurring Speed Management Program tied directly to Vision Zero goals, reflecting years of work by Councilmembers to prioritize dedicated funding for safer street design, traffic calming, and crash reduction. The program would fund quick-build safety projects, roadway redesign work, grant-ready engineering, and construction projects intended to reduce crashes and improve safety more systematically across the city. Proposed FY2027 investments include Green Road reconfiguration work, North Main quick-build projects, and traffic calming improvements integrated into resurfacing projects
Third, the proposed budget directs significant one-time Kline’s Lot sale proceeds toward housing, homelessness response, and economic development initiatives. The administration recommends $2.5 million for the Ann Arbor Housing Commission, $500,000 to support Delonis Center expansion efforts, $250,000 for the Alpha House family shelter project, and more than $5 million toward economic development acquisition and due diligence efforts intended to support future redevelopment opportunities.
Finally, the budget expands staffing across parks, housing, engineering, sustainability, police, and fire services while maintaining a structurally balanced budget and preserving the city’s AAA bond rating. The proposal increases overall staffing from 863 to 893 FTEs, adds new positions tied to the Sustainable Energy Utility and housing operations, and continues investment in infrastructure, fleet replacement, and public safety equipment while keeping pension and retiree healthcare funding levels well above national benchmarks.
City Council Meeting, Monday, May 18th at 7 p.m.
Agenda Highlights
PUBLIC HEARING ITEMS
Setting SEU Rates (PH-1). Council will consider updates to the Sustainable Energy Utility ordinance to support the SEU’s planned FY2027 pilot launch. The change would establish the SEU’s first customer rates for two pilot programs: a residential solar-and-battery pilot in the Bryant neighborhood and a municipal solar pilot serving city facilities. The Bryant pilot would charge participating households an average of about $50/month in exchange for access to solar energy systems funded largely through state grants, while municipal facilities would pay rates intended to roughly match the cost of purchasing electricity from DTE. The administration estimates the pilots could generate roughly $200,000 in SEU revenue in FY2027 while helping the city test operations and scale the program over time.
FIRST READING ITEMS
Ashley Mews PUD Rezoning (C-1). Council will consider amendments to the Ashley Mews PUD at 414 S. Main that would modernize the project’s zoning regulations and allow a broader range of downtown uses in the high-rise portion of the development. The proposal would permit all D1 downtown uses on most floors of the tower (including office, residential, retail, and other mixed-use activities already common in the downtown core), while leaving the townhouse portion and the site plan unchanged. Staff argues the update reflects changing downtown conditions, including reduced office demand following the pandemic, and would bring the project more in line with surrounding downtown zoning and current city policies, including the elimination of downtown parking minimums. Planning Commission recommended approval unanimously.
NEW BUSINESS - CITY COUNCIL
Confirm Support of City’s Ongoing Interventions in DTE Electric and DTE Gas Rate Cases. (DC-5). Council will consider a resolution reaffirming the City’s ongoing intervention in DTE electric and gas cases before the Michigan Public Service Commission (MPSC). Over the past five years, the City has participated in eleven utility cases challenging rate increases, pushing for improved reliability and accountability, and advancing the city’s clean energy goals. These interventions have helped save DTE ratepayers more than $1 billion in electric costs and over $150 million in gas costs while limiting recent residential electric rate increases well below what DTE originally requested. The resolution comes as DTE has filed another major rate increase request, including a proposed 9.7% residential electric rate increase and higher streetlight charges. (Sponsors: Taylor, Radina, Cornell, Harrison, Mallek).
Limited-Time Electric Vehicle Rebate Initiative to Help Abate Rising Fuel Costs (DC-6). City Council will consider a proposal to launch a limited-time electric vehicle rebate program using unspent Climate Action Millage rebate funds originally intended for a future commercial decarbonization initiative. The proposal would provide rebates of up to $7,500 for new electric vehicles purchased by income-qualified households and Ann Arbor businesses, up to $5,000 for other households purchasing new EVs, and up to $4,000 for used EVs. The program would be funded with $500,000 and run through September 2026 or until funds are exhausted. The program is intended to help residents respond to rising fuel costs while continuing the city’s broader A2ZERO strategy to reduce transportation emissions following the expiration of federal EV tax credits.(Sponsors: Taylor, Cornell, Harrison, Eyer, Radina).
NEW BUSINESS - STAFF
Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027 (DS-1). Council Members have proposed two amendments to the FY2027 budget. The first would allocate $700,000 ($300,000 in marijuana excise tax revenue and $400,000 in opioid settlement funds) to support the Rising Hope Housing Program, a collaborative housing stabilization initiative serving formerly incarcerated and justice-impacted residents. The program provides trauma-informed case management, recovery support, housing navigation, transportation assistance, and other wraparound services intended to reduce homelessness and improve reentry outcomes. A second amendment would add two additional firefighter positions beyond what was included in the proposed budget, due to sustained overtime pressures and staffing shortages within the Fire Department. Adding staff will substantially reduce mandatory overtime hours and improve firefighter wellness and retention. To partially offset costs, the amendment would eliminate a currently vacant Human Resources manager position and appropriate an additional $27,546 from the General Fund balance.
I'd love to hear from you.
Feel free to reach out any time with your questions, concerns, or ideas:
Email: DAkmon@a2gov.org
Phone/Text: 734-492-5866There are also several ways to share your thoughts with the full City Council:
Submit an eComment online
Email all of Council: CityCouncil@a2gov.org
Speak at a Council meeting (in person or remote):Call the City Clerk’s office at 734-794-6140 starting at 8 a.m. on the day of the meeting to reserve a speaking time.Note: You do not need to reserve time to speak during a formal public hearing.
Thank you for staying informed and engaged!
