Re-Elect Mayor John Hieftje
Ann Arbor’s budget is balanced and the City commands one of the best bond ratings in the State.
Ann Arbor has a “demonstrated record of prudent management and conservative budgeting practices.”
“Moody’s expects Ann Arbor’s low debt load to remain modest…”
—Moody’s Investor Services, June 28, 2008 — As they upgraded the City’s bond rating
“John has shown remarkable leadership and skill in a tough budget environment. He has reduced the cost and increased the efficiency of city government, while assuring that the city’s most important work is performed at a high standard. We are fortunate to have a mayor who has both progressive vision and a commitment to spend our tax dollars wisely.”
—Paul N. Courant, Professor of Public Policy and Economics, former Provost, the University of Michigan
“John has been a strong and effective leader for our city. He is tough-minded and has brought greater efficiency and cost consciousness to city government to ensure our tax dollars are used wisely. I look forward to John’s continued enlightened, progressive and responsible leadership of Ann Arbor.”
— B. Joseph White, former Dean, University of Michigan Business School
Despite repeated cuts in State Revenue Sharing, a poor Michigan economy and escalating costs for current and retired employee health care, the City’s finances have improved since 2001. For example:
- The reorganization of City government increased efficiency and saves more than $10 million per year. This has allowed Ann Arbor to thrive at a time when other Michigan cities are falling behind. With more efficient delivery, city services have been preserved.
- The City’s property tax millage has gone down since 2001, Mayor Hiefjte’s first budget as Mayor.
- Ann Arbor’s “rainy day fund” has doubled since 2001 and is well above targets set by outside auditors.
- The city pension fund is 100% funded despite a turbulent stock market and poor economy.
- After decades of neglect, the City is investing in aging infrastructure. There is a now a new Maintenance Facility, something the city has needed for 25 years and new Broadway Bridges. 70-year old water and sewer pipes are being replaced. Finally, after 40 years of being stuck in a leaky basement, a new headquarters is planned for the Police Department. There will be space above for City Courts that need to vacate the county courthouse due to expiring leases. This project will be accomplished without increasing the millage.
- Rising health insurance costs have been brought under control now that all but one of the City’s Unions has agreed to cost sharing for health care.
- External auditors report that Ann Arbor is in the top 10% of cities in terms of being prepared for the nationwide crisis in funding retiree healthcare. Ann Arbor has a growing VEBA Trust (currently $56 million), something most local governments do not have. Paying for retiree health care will remain an area of concern but the city is on schedule to handle the problem and is in a far better position than other local governments.
Where your property taxes go
(click to enlarge)
