Rochester Hills adopts FY2024 fourth‑quarter budget amendments; officials warn police fund will absorb Oakland County shortfall

Rochester Hills City Council on Dec. 16 adopted fourth‑quarter amendments to the city’s fiscal 2024 budgets, finalizing $54.9 million in capital projects and approving a set of transfers and carryovers that leave significant work to be completed in 2025.

Finance staff presented the amendments as part of the city’s year‑end accounting and projection process. “We have been very, very busy this year,” City staff member Mr. Snyder said during the presentation, detailing program-by-program spending and the money being carried over into the next fiscal year.

The amendments increase total citywide revenues by about $4.1 million and reduce proposed expenditures by $25.4 million, producing a net positive impact on fund balances of roughly $29.6 million; roughly $17 million of the work will be carried into 2025 to complete projects not finished in 2024. Snyder told the council that capital spending for 2024 totaled about $54.9 million and singled out major roads ($7.1 million), local streets ($7.4 million), water and sewer ($10.2 million) and facilities work (about $26 million) among the largest categories.

Nut graf — why this matters: The budget amendments put on the books a record level of infrastructure work delivered without issuing debt, but council and staff said the most pressing unresolved issue is rising law‑enforcement costs imposed by Oakland County. Snyder warned the council that the county’s contract rate increases will consume the city’s police fund balance in coming years unless the city adopts a multi‑year financial plan.

Details and context

Snyder walked council through fund‑level changes. He said the general fund will transfer roughly $15.4 million to the capital improvement fund to hit the city’s fund balance policy targets. He described citywide infrastructure accomplishments in 2024 as “probably the single largest infrastructure investment year in the city’s history,” but stressed many projects remain active and will continue into 2025.

On public safety, Snyder said the Oakland County Sheriff’s Office rate increases adopted by the county board — a 17 percent increase in 2025 followed by 9 percent increases in 2026 and 2027 — create a sizable unanticipated cost. “This is an absolute monkey wrench thrown into our city's very well tuned financial system,” Snyder said. He told council the police fund balance can absorb the 2025 increase but that “we are likely to use up any and all police fund balance above the 25% fund balance target by the end of next year, 2025.”

Council action

Councilmember Missus Buongiuli moved and Vice President Carlock seconded the resolution to adopt the FY2024 fund totals as amended. The motion carried unanimously.

What council directed next

Councilmembers and staff agreed to treat the county rate increase as a priority issue for the next several months. Snyder said he will coordinate with Mayor Barnett and council to present options before the development of the FY2026 budget, and requested a clear council direction on whether to pursue tax, service or other options to manage the new cost structure.

Provenance: city finance presentation and adoption

Topic introduced: Mr. Snyder begins the FY2024 fourth‑quarter budget presentation (transcript block start ~1573.53).

Topic finish: council reads and adopts the FY2024 fund totals as amended (motion recorded ~2802.54).