Sterling Heights unveils $294 million proposed FY2027 budget, holds two workshops before May vote

Sterling Heights city officials on April 14 presented a proposed fiscal year 2027 budget totaling $294 million and fielded detailed questions from council about funding, timing and program delivery. City Manager Mark Vanderpool told council the plan focuses on financial stability while maintaining investments in quality of life, sustainability and infrastructure ahead of a planned vote in early May.

CFO Jennifer Vanney said the proposed budget includes a $136.2 million general fund (about 46% of total budget), a water and sewer fund of $67.5 million and special revenue funds totaling about $66.2 million. Property taxes remain the dominant general fund revenue source, at roughly 62%, and the proposed city millage stays at 17.53 mills. "For the average home, the annual city taxes will be $1,891," Vanney said, providing a baseline for residents to compare next year’s bills.

Vanney highlighted that the city is down about $56 million (16.1%) from the prior year because the previous budget included one‑time bond proceeds and capital carryforwards; planned increases in wages, benefits and some new positions — including a traffic engineer and a court officer — account for most of the general fund growth. She also noted the city’s debt profile remains conservative: the city has used approximately 18% of its legal debt margin and retains a double‑A credit rating from S&P and Fitch.

Council members pressed staff on several elements: timing of newly announced state road revenues that will augment Act 51 funding and a new neighborhood road fund; the treatment and timing of personal property tax reimbursements; and whether the city should pre‑commit more of its anticipated windfalls rather than wait until final reconciliation. Vanney said roughly half the state PPT reimbursement stream is predictable under current formulas and half is subject to annual state allocations.

The budget also continues funding for the Pathways to Play & Preservation program and the parks and recreation operating model, while capital spending includes jail renovation, a $1 million city‑campus solar field and neighborhood road projects. "If council wants to introduce amendments tonight we can incorporate them for the next hearing," Vanderpool said. Council introduced the FY2026–27 appropriations ordinance for consideration and directed staff to return with several follow‑up studies and cost estimates before final adoption.