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Birmingham adopts FY2025–26 budget and raises water, sewer rates starting July 1
Summary
The Birmingham City Commission on May 19 adopted the fiscal 2025–26 budget after targeted revisions to library and planning accounts and approved higher water and sewer rates required largely by Oakland County pass‑through charges; staff and commissioners flagged the need for further revenue detail and implementation tracking.
The Birmingham City Commission adopted its fiscal 2025–26 budget on May 19 and approved a package of utility rate changes that will take effect for bills dated on or after July 1. Finance staff described targeted adjustments to the draft plan and said the final numbers reflect updated county charges and commissions’ priorities.
Mary Chavez, presenting the budget, said the library’s millage was adjusted downward to a 1.2789‑mil levy, reducing revenue and fund balance contribution by $52,140. Key program changes approved included an increase in the planning department’s wayfinding budget from $50,000 to $260,000 and a $300,000 transfer in the local streets fund to pay for milling and overlay on Cole Street. Chavez told commissioners the county’s latest figures drove a sizable increase in sewage disposal costs, which informed the revised budget.
The commission approved the appropriation resolution by roll call. "We did revise the proposed budget that was presented at the public hearing on April 26, to be based on the feedback from the commission at that time," Chavez said during the presentation.
On utility rates, Chavez said final numbers from the Oakland County Water Resources Commissioner required changes to sewer charges. She summarized the local impact: "For the average homeowner using 90 units of water per year, the water bills will increase by approximately $11 per month ($134 per year). For sewer rates, the average homeowner will see an increase of $12 per month ($145.80 per year)." District‑specific adjustments (Evergreen Farmington and George Cone drain assessments) were also presented.
Commissioners pressed staff for the underlying revenue modeling and totals that the rate changes will generate. One commissioner said he expected annual adjustments to stabilize at roughly 6–7% but asked staff to provide the total dollars generated by the increases and the assumptions behind that projection.
Mayor Therese Long closed the debate and the commission approved both the budget resolution and the schedule amendment to fees and charges for water, sewer, stormwater and industrial surcharges.
Next steps: staff will publish the final adopted budget book and follow up with commissioners on the requested revenue breakdowns and the timing of capital projects tied to the rate increases.
