Farmington Hills adopts $85.9 million budget and affirms 2026 property tax rates

The Farmington Hills City Council on June 8 adopted its fiscal-year 2026–27 budget and confirmed the city’s property tax millage for 2026, approving a spending plan that budgets $85.87 million in general fund revenue and about $90 million in total expenditures.

Finance Director Tom Scrabbola told the council the tax base has grown modestly and the city’s general fund balance is projected to finish the year near $63 million before planned drawdowns. "We have a structural imbalance of about $4 million a year," Scrabbola said, explaining the administration plans to use a portion of fund balance in coming years while working to reduce the annual drawdown.

The budget presentation summarized revenue gains from property taxes and interest income and listed major expenditure areas: police ($22.6 million), fire (about $10.6 million) and special services/parks (about $15.2 million). Scrabbola also noted planned capital investments totaling roughly $48 million across road, drainage, police, fire and facilities projects.

Council members pressed staff for plain-language explanations of the "structural deficit" and the steps the city can take to reduce reliance on fund balance while maintaining service levels. Councilors and the administration discussed a mix of options including vacancy savings, targeted expense reductions, and the possibility of approving new recurring revenue sources.

The motion to adopt the fiscal-year 2026–27 budget and the 2026 millage rates was moved, seconded and recorded in the meeting minutes; the transcript records the motion and support but does not print a full roll-call tally for the budget item.

What happens next: the adopted budget and millage rates will govern operations for the coming fiscal year; the council and administration indicated they will monitor revenues and return to the council with steps intended to eliminate the planned annual use of fund balance over time.