Sterling Heights adopts $295 million 2026–27 budget with no millage increase

Sterling Heights City Council approved the fiscal 2026–27 appropriations ordinance, adopting a total city fund budget of $295,000,000 while holding the city millage rate steady at 17.5323 mills.

Finance and budget director Jennifer Varney told council the total fund budget is approximately $63.6 million lower than the prior year mainly because prior-year PPP projects and timing of road construction and capital projects reduced carryover appropriations. Varney said the general fund will be $136,500,000 — a 2.5% increase driven primarily by personnel and contractual obligations.

Council considered four amendments previously approved in workshops: $150,000 for additional street trees, $90,000 for a police strategic plan, $200,000 for crosswalk striping and $150,000 to fund sidewalk installation on Branch Drive. Varney said the proposed contribution to fund balance is approximately $165,000 after those amendments and that fund balance is estimated at $43.3 million (about 31.8% of operating expenditures) at the end of FY27.

Council members praised the budget process and the investment priorities, including continued funding for major and neighborhood road improvements, public-safety equipment and PPP initiatives. Mayor Taylor and others emphasized that most property-tax dollars go to other jurisdictions and noted Sterling Heights’ relatively low millage rate within the county.

Council moved and adopted the appropriations ordinance as amended with voice votes; all members signified support. The council also recognized Finance Director Varney on what members called a well-managed budget and her impending retirement.