Sterling Heights Council approves $319M budget including $40M in bonded projects

The Sterling Heights City Council has proposed a robust budget for the 2025-2026 fiscal year, totaling $319.9 million, with significant allocations aimed at enhancing public safety and infrastructure. A key highlight of the budget is the inclusion of $12 million for major road improvements and the renovation of Fire Station 5, alongside investments in personnel and public safety initiatives.

The proposed general fund budget stands at $133 million, reflecting a 2.8% increase from the previous year, primarily driven by personnel costs, including wages and health insurance. Notably, the budget incorporates a voter-approved millage increase of 0.95 mills, raising the total property tax rate to 17.5323 mills. This adjustment is expected to generate approximately $5.6 million annually, which will be used to fund various community projects, including a new pickleball complex and improvements to local parks.

During the meeting, council members expressed pride in the budget's focus on community needs, with several emphasizing the importance of maintaining a low tax rate while still delivering essential services. Councilman Radke highlighted the budget's alignment with the city's long-term vision, stating, "I'm proud this budget is still the lowest for a full-service city in the county."

However, concerns were raised regarding the financial implications of the proposed bonding for these projects. Councilman Yanez voiced apprehension about the potential debt incurred, estimating that the city could owe around $14 million in interest over the life of the bonds. He questioned the necessity of such expenditures, particularly for amenities like the pickleball court, suggesting that the community might not have fully understood the financial commitments involved when voting on the millage.

City officials clarified that the bonding is essential for expediting the completion of projects that residents desire, arguing that delaying these initiatives could lead to increased costs in the future due to inflation. The council assured residents that the debt would be managed through dedicated funding sources, minimizing the impact on the general fund.

As the council prepares to finalize the budget, the discussions reflect a balancing act between meeting community expectations and ensuring fiscal responsibility. The anticipated outcomes of this budget include enhanced public safety, improved infrastructure, and a commitment to fulfilling the promises made to voters regarding community development projects.