Eastpointe City manager’s proposed FY 2025–26 budget presented; water and sewer rates set to rise

Eastpointe City Council on April 1 received the city manager’s proposed fiscal year 2025–26 budget and scheduled two public budget workshops in May.

The proposed budget, prepared by City Manager Walton before her departure, shows a modest general fund surplus of $85,696 and recommends a blended 3.1% increase in water and sewer rates driven in part by Great Lakes Water Authority charges.

City staff told the council that taxable values in Eastpointe increased about 6.3% year over year but that the Headlee restriction limits the city’s allowable tax revenue growth to 3.1%. Finance-related line items held largely steady; staff said pension and retiree health-care costs are being held at $6,300,000, and many departments show only modest expenditure increases tied to contractual wages.

“Overall, the general fund revenues are up less than $300,000,” a staff presenter said, adding that the budget shows a small surplus. The staff presentation noted that while Great Lakes Water Authority charges rose significantly, most other water and sewer costs were flat; the proposed utility changes are a 1.1% water rate increase, a 4.2% sewer increase and a 2% increase in the ready-to-serve charge, which staff described as reflecting construction-cost increases.

Council voted to receive and file the proposed budget and to schedule two budget workshop meetings on May 13 and May 14, both at 6:00 p.m. A public hearing on the proposed budget and tax rate was scheduled for June (council and staff corrected the hearing date during the meeting to June 3 at 7:00 p.m., pursuant to Chapter 12, Section 7 of the Eastpointe City Charter). The council also introduced, on first reading, an appropriations and tax-levy ordinance connected to the budget; the second reading and possible adoption were scheduled for the June 17 regular meeting.

The presentation noted a few other items: the city expects fewer large capital purchases next year, planned changes to the nuisance process intended to reduce attorney fees, only one election in November, and reduced investment returns compared with the current year as interest rates normalize. Staff urged council members to review the posted line-item budget and the budget book emailed to members and encouraged questions ahead of the workshops.

The council’s vote to receive and file and to schedule workshops passed on a recorded roll call with affirmative votes from Council members present and Mayor Kleinfeld.