Sterling Heights City Council Special Budget Hearing – April 29, 2026

This was the second special budget hearing for the 2026-27 fiscal year. The meeting included presentations from the finance, police, fire, community relations, and public works departments, as well as discussions on electric vehicle fleet, artificial intelligence, public art, the nation's 250th anniversary celebration, and departmental accreditations. The council approved three budget amendments and debated the funding mechanism for paving remaining dirt roads.

Consent Calendar

• Agenda approved unanimously.

Public Comments & Testimony

• Mr. McCabe (veteran, resident) asked about automatic vehicle shut-off, EV fuel cost comparisons, creation of a veterans committee, results of a stormwater utility survey, flock camera expansion, code enforcement response times, and school zone crosswalk upgrades. He also congratulated CFO Jennifer Varney on her retirement.

Discussion Items

• Budget Overview (Jennifer Varney, CFO): Total city budget $294.3 million; general fund $136.2 million. Police department budget $46.6 million (34% of GF, 188 FT + 31 PT employees). Fire department $30.3 million (22% of GF, 127 FT). Community relations $2.6 million (2% of GF). Public works $7.6 million. Water and sewer fund $67.5 million with proposed 4.8% rate increase ($4/month average). Proposed capital includes jail renovation, EV patrol vehicles, fire station 5 renovation, public art, and fleet replacements.
• Fire Department (Chief Kevin Edman, Fire Marshal Tracy Davis, Training Chief Matt Sadowski): Presented achievements: Medical Priority Dispatch, BLS Peak Ambulance program (reduced apparatus responses), Mobile Integrated Health program for high EMS users, CPR/AED initiatives, station 5 renovation (including Chief John Childs Training Center), quick response vehicle (QRV) deployment, accreditation process (target 18 months), fire prevention data (9,399 inspections over 52 months, 30-40% require reinspection), video reinspections for minor items, and a high school recruitment pipeline (UCS Week, partnerships with Chaldean Community Foundation, Buddhist Temple, veterans affairs).
• AI Initiatives (Assistant City Manager Dale Dejong-Cruz): City established AI task force in Nov 2023, selected GovAI as citywide productivity tool. Over 160 active users and 6,000 prompts since Feb 9, 2026. GovAI includes data shield, role-based responses, and planned public-facing chatbot. Policy finalized Nov 2025.
• Community Relations (Melanie Davis): Public art history and upcoming projects: Mound Road pillars, magic wonder safari mural, library pillars, page turner bench, fire station clock tower art. Future: mural at Athletic Hub, student art banners, America 250 banners, public art displays, monument refresh. Public art strategic plan with survey and ambassador program. America 250 celebration: bookmark design contest, video “250 residents, 10 iconic locations,” declaration reading on July 8 at Stevenson's Runkel Field (rain or shine), commemorative banners, drone show at Sterlingfest, fireworks at Dodge Park Thursdays, quilts for Memorial Day Parade. MMl community excellence award application for Nelson Park community garden.
• Department of Public Works (Mike Moore, Nick Colez): EV pilot program results: cost per mile savings ($614/year vs $1,033 for F-150 lightning; similar savings for Bolt, Mustang Mach-E, Equinox, Blazer). Challenges: limited charging, range anxiety, winter reduction, training, mileage tracking. Five new EV vehicles proposed. Fleet replacement plan: CST study recommended 34 replacements/year; reduced vehicles over 100k miles by 70%. Telematics pilot planned.
• Accreditations (Dale Dejong-Cruz): Fire department accreditation (CFAI) timeline 27-28, DPW accreditation (APWA) timeline 27-28, police department already accredited. Triple accreditation would make Sterling Heights the second city in Michigan (after Canton Township). ISO rating currently 2, targeting 1.
• Traffic Enforcement Concerns: Councilmembers Schmidt, Radke, and Majak expressed strong concern over declining traffic violation numbers. Police Chief Satterfield cited post-COVID cultural shift, Operation Ghost Rider, and increased traffic bureau (from 8 to 12 officers). Council urged greater enforcement.
• Dirt Roads Discussion: Council debated funding for paving Gardner East, Nathan East, and other dirt roads. Councilmember Radke argued residents never paid for street construction and proposed special assessment district (SAD). Councilman Radke's motion to remove dirt roads from program and replace with other roads failed for lack of second. Council agreed to explore 50-50 cost share with residents via SAD. Motion to fund sidewalk on Branch Street (connecting subdivision to Mound Road) for $150,000 from PPP funds passed.

Key Outcomes

• Budget Amendments Approved:
  1. Increase tree preservation fund by $150,000 (general fund) for additional street trees – passed 5-1 (Ylanis opposed).
  2. Increase general fund by $90,000 for police department long-term strategic plan – passed 6-0.
  3. Increase local road fund by $200,000 for crosswalk striping and safety improvements – passed 6-0.
• Dirt Roads: Council directed administration to pursue a 50-50 cost share with residents via a special assessment district for Gardner East and other unpaved roads; report back with firm costs. $150,000 sidewalk on Branch Street approved.
• Next Steps: Final budget approval scheduled for May 5, 2026. AI training for council planned. Police strategic plan to be developed. EV roadmap to be created. Telematics pilot initiated.