Ann Arbor City Councilmember Greden’s vague warning last week of a costly labor settlement has been explained:
The city of Ann Arbor is facing up to a $4 million tab to settle a grievance filed four years ago by its largest employee union.
The City Council was told of the arbitrator’s decision last week in a closed-door session.
“The math is pretty simple,’’ City Administrator Roger Fraser said this morning. “If you are calculating pain, this hurts a bunch. The question is, ‘How do you handle it?’‘’
Fraser said the arbitrator wasn’t clear on a number of issues, which is why he wasn’t sure how much the final bill would be. He estimated the decision will cost the city between $2 million and $4 million.
. . .
Easthope said the city may have to take it from the city’s general fund reserves, sitting at about $11 million.
The city is already facing up to a $4 million bill to pay for removing dead and dying ash trees on public property. Residents last week rejected a proposed half-mill property tax increase for two years that would have paid for that.
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