Grosse Pointe Farms council adopts 2026'27 budget, raises millage to cover sewer bond payments

The Grosse Pointe Farms City Council voted unanimously on May 20 to adopt the city's fiscal 2026'27 budget and to set the property millage at 18.7%, a slight increase the council said is needed to cover sewer separation bond repayments.

The budget, as presented by Finance Director Tim Roland, includes roughly $2,000,000 in transfers to capital for infrastructure and equipment, about $4.5 million for street resurfacing and an allocation to continue the sewer separation project, which the council said is aimed at eliminating as much as 90% of basement flooding incidents. Roland told council the city is carrying an unassigned fund balance equal to about 26% of annual expenditures and that total revenues are projected to increase by roughly $442,000 (about 2.15%).

"This council may remember that many years ago we created a policy that unassigned fund balance would be our savings account," Council member Wood said before moving adoption. "We're in great shape, and I think you'll like what we hear." Wood moved approval of the budget and millage; the motion was supported and carried by voice vote.

Mayor (speaker 3) and City Manager Reside praised department heads and staff for budget work and cited $3 million in anonymous donations toward a pool project and ongoing demolition work at Pier Park. Roland noted that property taxes remain the largest revenue source (about 77.5% of the city's tax-derived dollars) and explained the need to repay a $45,450,000 sewer project bond that contributes to the slight millage increase.

Votes at a glance - FY 2026'27 budget and tax millage: Adopted (unanimous voice vote). Motion by Council member Wood; support by Council member Donovan. - Water and sewer rate schedule (effective 07/01/2026): Approved. Motion by Council member Wood; included a $4.10 increase per 1,000 cubic feet of metered water usage and a $2.21 per billing-cycle increase for flat-rate service. - Residential recycling rate: Approved at $12 per bimonthly billing per household, effective after July 1. - One-year sewer maintenance contract: Awarded to SAC Construction LLC for $250,000 (initial year). - Dimensional variance for 303 Hillcrest (detached garage height): Granted (see separate item).

The council's budget discussion also covered long'term fiscal pressures, including the Headley amendment's effect on taxable value rollbacks and the challenge for built-out communities to capture new construction revenue. Council members said they plan to continue coordinating with other municipalities and state representatives about municipal finance and zoning preemption proposals.

The meeting packet and Tim Roland's budget memo dated May 14, 2026, were cited as the basis for the council's motion; council recorded the motion and carried it by unanimous voice vote. The city manager and finance director said the budget is balanced and that the capital transfers and bond payments are scheduled for the coming fiscal year.

The council adjourned after routine business and public comment.