Sterling Heights expects $800,000 net revenue drop but nearly $40 million in road funding from state budget

Sterling Heights will see an estimated $800,000 net reduction in near-term state-shared revenue but a major boost in road funding, City Manager Mark Vanderpool told the City Council.

“The constitutional revenue sharing ... we’re gonna see a reduction of 8% … that equates to about a million dollars for us in round numbers,” Vanderpool said. He added the legislature created a new public-safety revenue-sharing formula that will deliver roughly $200,000 to Sterling Heights, leaving an estimated $800,000 net loss in the city’s general fund.

Why it matters: Vanderpool said the state budget’s new road funding will deliver “almost $40,000,000 in new road funding” to Sterling Heights over five years. He told council that because of the extra road dollars the city can stop contributing roughly $1 million per year from its general fund into the local road fund, so “at the end of the day, there is no net loss and actually a net gain to Sterling Heights through the state budget.”

Vanderpool also said the state budget includes $2.1 million in support for the city to purchase a new 100‑foot ladder truck and $1 million to renovate former jail space in the police department being converted for training.

He credited bipartisan support in the legislature and named several legislators in his remarks. Vanderpool cautioned council that the new public-safety sharing formula is tied to crime statistics and that Sterling Heights’ relatively low crime rate produced a smaller award.

Council action and context: The budget overview was presented as part of the city manager’s report; no council vote on city budget changes was recorded at the meeting. Vanderpool said department-level and budget adjustments will follow as city staff determine how to apply the revenue changes and new grants.

What’s next: Vanderpool’s presentation signals staff will return with budget implementation recommendations showing how the city will use the state road funds and the public-safety offset. He thanked the city’s state legislative team for the support that led to the appropriations.