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Council hears first reading of amended appropriations ordinance, ARPA obligation update
Summary
Finance Director presented the first reading of an amendment that raises expenditures roughly $3.8 million (largely carry‑forwards and a $2.0M MEDC lakeside grant reappropriation); city reports ARPA projects will be obligated by year‑end with nearly all funds accounted for.
The Sterling Heights City Council received the first reading of the 2024–25 appropriations amendment during its Dec. 3 meeting.
Finance Director Jennifer Varney said the amendment increases expenditures by about $3.8 million, primarily to carry forward projects budgeted last year but not completed. The amendment includes a $2.0 million reappropriation of a Michigan Economic Development Corporation (MEDC) grant for lakeside development, $336,000 in consultant costs for lakeside development that will be reimbursed by future tax capture, and $460,000 in one‑time labor costs tied to early settlements of three labor contracts. Varney said the net use of general fund balance is approximately $1.2 million and the general fund balance remains healthy at about $38 million (~29.6% of expenditures).
Varney provided an ARPA status update: the city received $19.8 million in ARPA funds plus over $1.1 million in interest ($20.9M available), has spent roughly $10.7M as of Sept. 30, and had $15.3M officially obligated as reported to the federal government. She said remaining ARPA items (M‑59 improvements, Lakeside Island Bridge) will obligate by the end of the year to meet federal deadlines; the city has until the end of 2026 to spend the funds once obligated.
Resident Ken Nelson raised questions about when the newly‑approved Paths/Play/Preservation millage (PPP) will be reflected in the budget and whether the amendment should be postponed to include the millage; Varney said the PPP levies will be collected starting July 1 and affect the 2025–26 budget, not the 2024–25 amendment. Following discussion, council moved to introduce the amendment on first reading; adoption is scheduled for Dec. 17, 2024.
