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Sterling Heights council reviews $294.3 million budget and approves three amendments including $4.8% water rate increase
Summary
City finance officials presented a proposed all‑funds budget of $294.3 million and a $136.2 million general fund; council approved amendments totaling $440,000 for street trees, a police strategic plan and crosswalk safety as officials discussed water/sewer rate increases and a May 5 adoption timeline.
The Sterling Heights City Council on Tuesday reviewed the proposed 2026–27 budget and approved three amendments to the proposal ahead of a final vote scheduled for May 5. Jennifer Varney, the city’s chief financial officer, told the council the total all‑funds budget is $294,300,000 and the proposed general fund is $136,200,000.
Varney said the water and sewer fund totals $67.5 million and includes roughly $44 million in fixed costs passed through from regional providers, and that the proposed budget contains a 4.8% water/sewer rate increase that will raise the average household bill by about $4 per month (assuming residents use the $5 monthly e‑bill/autopay credit). "The proposed budget includes a rate increase of 4.8% to cover the increased costs," Varney said.
Council considered three administration‑backed budget amendments. Councilmember Radke moved to add $150,000 to the tree preservation fund to allow planting on city‑owned property and around multifamily buildings; the motion passed in a roll call vote 6–1 (Councilmember Yanez recorded a no vote). Radke also moved to add $90,000 to fund an outside long‑term strategic plan for the police department; that motion passed by voice vote (recorded as 6–0). Finally, after administration reported a federal grant denial for a larger crosswalk project, council approved a $200,000 local‑road‑fund amendment to begin prioritized crosswalk striping and other safety improvements; that motion also passed by voice vote (reported as 6–0).
Varney said administration will continue to pursue grant opportunities for crosswalks and will present a targeted second application with specific locations. "We have about a need of $2,000,000 [to update crosswalks citywide]," City Manager Mark Vanderpool said, adding the $200,000 would allow the city to begin work on the highest‑priority locations.
The council heard departmental presentations from police, fire, public works and community relations before the amendment votes. Several council members used the session to press departments for follow‑up information—most notably on traffic enforcement, EV charging for police vehicles, and options for paving three gravel roads now in the budget. The council adjourned after taking public comment and directing staff to return with additional cost and scheduling details where needed.
Next steps: the administration expects to present a final budget for adoption May 5, incorporating the approved amendments and any additional updates.
