Highland Park council approves 2026–27 budget after residents and council members press for more transparency

Highland Park City Council approved the city’s proposed budget for July 1, 2026–June 30, 2027 in a 4–1 roll-call vote at its June 1 meeting, despite public requests and council concerns about recent audit findings and state notices.

Public commenter Joshua Shhati, who gave his address as 94 Island Street, placed “five documented facts” on the record before the vote: he said the Michigan Department of Treasury issued multiple delinquency notices to the city between January and February for failures to file required reports and that the city’s auditors had repeatedly identified expenditures over appropriations and unreported federal awards. Shhati asked the council to table the budget until a public workshop on the financial documents could be held. “The residents of Highland Park deserve a public budget workshop before this vote,” he said.

Council members debated the request. A letter from the Michigan Department of Treasury dated March 23, 2026 was read into the record; that letter stated the municipality was found not to be in material compliance with qualifying criteria under Public Act 34 (2001) because the most recent audit had not been filed within six months of fiscal year end and because the property-tax levy delinquency rate exceeded 18 percent. The letter said the city is not authorized to issue municipal securities without prior Treasury approval until the concerns are addressed.

Finance staff and councilors described the city’s long-term pension obligations and how those are reflected in the budget. Staff said the pension levy fund (fund 230) records revenue from pension-related property taxes and required actuarial contributions; the staff estimate presented at the meeting cited about $2.3 million to be collected this year for pension obligations. During discussion, staff noted the city has substantial long-term pension liabilities discussed during the meeting and that pension payments are not recorded as a single lump sum in one budget year.

Council members also pressed finance staff about police overtime, citing prior-year figures and the current overtime line in the proposed budget. Finance staff said FY2025 overtime totaled about $487,000; the current overtime line was budgeted at $350,000 and staffing shortages often drive overtime up when minimum road coverage is required. Council members discussed potential grants (for example, COPS hiring grants) that could offset salary costs but heard that many grants require multi-year commitments and ongoing maintenance of positions.

On the motion to approve the proposed budget (moved by Councilwoman Manica and supported by the chair), the recorded votes were: Councilman Shafi — yes; Councilwoman Martin — yes; Councilwoman Manica — yes; Council Pro Tim Robinson — no; Council President Thomas — yes. The motion carried 4–1.

The council’s approval came after debate and public requests to delay the vote for additional review. The administration said the budget had been distributed to council in February and that procedural deadlines limited additional workshops after a public hearing; council members who requested more time emphasized the value of direct access to finance staff and written follow-up on line items.

Next steps and related items from the meeting: the council approved a one-year audit-services contract with Andrews Cooper Palvic PLC for $58,000 on the same agenda, and it accepted a Financially Distressed Cities grant of up to $150,000 for a city-hall boiler replacement. Several council appointments to the city’s Historic District Commission and ordinary business items (licenses, parade permits and a $45,000 summer-youth program grant) were also approved during the meeting.

The meeting record shows residents and council members pressing for clearer documentation and more public opportunities to review line items; the city did not table the budget and approved it, but the state Treasury notices and audit issues noted during the meeting remain outstanding items for follow-up.