Sterling Heights City Council FY2026-2027 Budget Workshop - April 15, 2026

The Sterling Heights City Council held a special budget workshop on April 15, 2026, to review the proposed fiscal year 2026-2027 budget. The meeting featured presentations from city administration on the $294 million total budget, including the general fund ($136.2 million), water and sewer fund, special revenue funds, capital projects, and debt service. Key initiatives discussed included solar panel installation on city buildings, a community compost pilot, road and sidewalk improvements, and updates on Pathways to Play and Preservation (PPP) millage projects. Council members posed questions, debated amendments, and directed staff to report back on several items for further study.

Public Comments & Testimony

• Mr. Nelson (resident): Asked for clarification on parks and recreation funding continuity after the 10-year PPP millage, and on the meaning of "dollar value per resident" in the budget document.
• Mr. Inks (resident, Sustainability Commission member): Expressed support for the solar panel project and the food waste reduction program, citing favorable timing for solar investment and community desire for composting. Also suggested a method for parking enforcement without requiring immediate access to LEIN.

Discussion Items

• Budget Overview (CFO Jennifer Varney): The proposed total city budget is $294 million, down 16.1% from the current year due to completion of major bond-funded projects. The general fund increased 2.3% to $136.2 million, with public safety consuming 56%. Personnel costs are 77% of the general fund. Property tax revenue is up 3.4%, and the millage rate remains at 17.53 mills. The budget includes a $400,000 contribution to fund balance.
• Solar Panel Installation (Sustainability Planner Alexis Weinberg): Proposed installation of solar panels on City Hall, police department, and library roofs at a total cost of $1,017,791, offset by a 30% federal tax credit ($305,637), netting $711,754. The system would generate 27% of the buildings' electricity, with an 8.5-year payback period and $3.54 million in projected savings over 30 years.
• Food Waste Reduction and Compost Pilot (Danielle Todd, Make Food Not Waste; Alexis Weinberg): Sterling Heights generates an estimated 50 million pounds of food waste annually, costing residents $100 million in uneaten food. The proposed pilot would place three 64-gallon collection carts at two locations (Nelson Park and City Campus) serviced weekly. If a joint grant with Next Cycle is awarded, the city's cost would be $12,507 (20% match), including food cyclers for 40 residents. The pilot aims to reduce landfill methane and align with the state's goal to halve food waste by 2030.
• Road and Sidewalk Plans (City Engineer): The 2026 major road plan includes six projects (e.g., 50 Mile Road, Shana Road bridge, Clinton River Road underground work, Red Run and Moravian Drive paving, Metro Parkway resurfacing, 18.5 Mile Road full-depth asphalt). The 2027 plan adds eight projects (e.g., 15 Mile Road, Clinton River Road roadwork, 17 Mile Road, Canal Road safety improvements, Utica Road improvements, Dobie Drive, Shoreline Drive). Local road improvements will cover 31 locations (4.9 miles). Sidewalk gap completions and replacements continue, with 7,300 flags replaced in 2026. The city is also hiring a traffic engineer to lead Vision Zero efforts.
• PPP Millage Updates (Jason Castor and Kyle Langloy):
  • Land preservation: 20 acres acquired near Utica and Hayes, totaling 44 acres of city-owned property. Residents prioritized large parcels with wetlands and tree canopy.
  • Tree reforestation: 3,200 trees planted in 2025-2026, with an annual target of 2,200 trees. Long-term canopy goal is 40% citywide. The city uses Tree Keeper software to manage inventory.
  • Parks projects: Red Run Park construction awarded (groundbreaking May 5, 2026, opening October 2026). Sterling Heights Athletic Hub (indoor pickleball/table tennis) named, with grand opening planned for June/July 2026. Rotary Park reimagining in design phase with construction starting spring 2027. Nature preserve soft-surface trail completion fall 2026.
• Councilmember Questions and Motions:
  • Mrs. Sarowski: Asked about solar grant opportunities, compostable items, pickleball court safety, and pickleball availability after the hub opens.
  • Mrs. Schmidt: Queried solar panel location choice, methane from composting, cost of collection buckets, concurrent road and park construction, sidewalk on west side of Red Run, and sidewalk enforcement.
  • Mr. Radke: Raised concerns about gravel road paving without sidewalks, lack of bike lanes on Clinton River Road, payback period for solar, and budget treatment of PPT reimbursement. He also requested reports on a rail spur to Velocity, a fire district for apparatus sharing, and a police department organizational review.
  • Mr. Yanis: Proposed a motion to reduce the legislative travel budget by $23,600 (failed 5-2) and a motion to allocate $1 million for a low-income home improvement program (deferred for legal study). Also requested a transparency portal but withdrew after discussion.
  • Mr. Majak: Supported the home improvement program idea but agreed more study was needed.

Key Outcomes

• Appropriations Ordinance Introduced: Council voted to introduce the fiscal year 2026-2027 appropriations ordinance (motion carried). It will be considered for adoption at the May 5, 2026 regular meeting.
• Legislative Travel Budget Reduction Defeated: A motion to reduce the city council's travel budget by $23,600 failed on a roll call vote of 2-5 (Yanis and Majak in favor).
• Home Improvement Program Deferred: Council directed city administration to research legal and logistical aspects of a $1 million low-income home improvement program and report back within 30–60 days.
• Reports Requested: Without objection, council asked staff to:
  • Report on the feasibility and scope of a rail spur study for a potential Amtrak stop at Velocity.
  • Explore collaboration with neighboring communities on a fire district for apparatus sharing.
  • Provide options for a police department organizational review (strategic plan).
  • Return with a cost estimate for adding sidewalks to Gardner East when paving that gravel road.
  • Consider allocating $150,000 from the projected fund balance contribution to additional tree planting (to be brought back as a budget amendment at the next hearing).
• Next Steps: The second budget workshop is scheduled for April 28, 2026, at 6:30 p.m. Council may introduce further amendments at that meeting. Final budget adoption is set for May 5, 2026.