Madison Heights council hears $68.9 million FY2027 budget, schedules adoption for May 11

Madison Heights city staff on April 13 presented the proposed fiscal year 2027 budget, outlining a $68.9 million spending plan that would keep the general fund at $43.3 million, allocate $10.3 million for capital outlay and hold staffing growth to roughly 0.6 full‑time equivalent positions. City manager Marsh and Finance Director Linda Kunath led the presentation and answered council questions.

The presentation listed key priorities: maintaining public safety and core services, funding planned road rehabilitation and water/sewer system improvements, and continuing investments in parks and communications. Marsh said the city will levy its full authorized operating millage — just over 13.5 mills — for a total millage rate of about 24.9 mills, noting that that level limits the city’s ability to expand services if inflation outpaces the state multiplier.

The budget summary includes: a $68.9 million total budget; a general fund of $43.3 million; $10.3 million for capital outlay (up from $8.8 million last year) including road work, vehicles and park projects; and a water and sewer enterprise fund totaling $15.4 million. Kunath said $10.3 million is targeted largely at replacing and preserving existing assets and that $3 million (about 20% of the water/sewer fund) supports capital improvements such as water main replacements.

The presentation also flagged pension funding and other long‑term liabilities. Staff said the budget increases pension contributions (a dedicated pension mill is proposed) above actuarially required levels to strengthen the police and fire pension funds, which remain partially funded. Kunath said the proposed budget includes $7.88 million supported by a dedicated pension mill, including amounts budgeted for the police and fire pension funds.

On infrastructure, Department of Public Services staff described planned summer concrete sectional replacement work funded in part by a neighborhood millage that expires this year; staff said they will ask voters in August 2026 to renew the millage, which is estimated to generate about $2.1 million annually if approved. Sean Valentine of DPS described project streets and said the city will try to maximize coverage while minimizing closures.

Council members pressed for details on capital outlay and parks work. Councilor Lori asked for a breakdown of major capital outlay items; staff pointed to roughly $1 million more for roads than last year, a $300,000 increase in water main replacements, new vehicles including dump trucks and a stump grinder, and $780,000 in park improvements. On McGillry Park, staff said the budget contains $500,000 in phase funding and that full costs could run roughly $1.7–$1.9 million; the work would be phased and supplemented with grants where possible.

Staff reminded the council that the budget will not be adopted at this meeting. A public hearing and adoption of the budget and tax levy are scheduled for the regular council meeting on May 11, 2026. "This concludes the budget presentation," staff said, and invited line‑item review and questions prior to adoption.

What happens next: council will hold a public hearing and is scheduled to adopt the budget and levy on May 11. The presentation materials and a detailed line‑item budget are posted online and available in the city manager’s office.