Sterling Heights is gearing up to kick off a series of projects in the upcoming fiscal year as part of a newly approved budget, thanks to a voter-backed millage aimed at preserving green space, improving sidewalks, and expanding recreational amenities.
The city’s 2025–2026 financial plan totals $319.9 million and marks the first cycle funded by the “Pathway to Play and Preservation” millage, which voters supported last November. Among the initiatives funded by the new tax: land acquisition for green space conservation, sidewalk repairs across the city, planting over 1,600 trees, and beginning construction on a new pickleball facility — with the exact location yet to be finalized.
The budget passed earlier this month in a 5–1 council vote, with Councilmember Henry Yanez casting the sole vote against it. The plan represents a 26.8% increase compared to last year’s originally adopted budget, and a 9.9% jump over the current amended budget — adjustments made during the fiscal year to reflect actual expenses.
The general fund — which covers the city’s basic operations — is projected at $133 million, showing a 2.7% uptick from the current amended budget and 5.8% over last year’s initial budget.
City Manager Mark Vanderpool indicated this spring that Sterling Heights intends to move quickly on implementing millage-supported programs. The 0.95-mill levy will fund projects over a 15-year span.
City spokesperson Melanie Davis noted that approximately 9,500 sections of sidewalk — referred to as concrete flags — are slated for replacement or repair during the next fiscal cycle.
The new budget also includes funds for additional infrastructure upgrades and public safety enhancements. Planned investments include a major overhaul of Fire Station No. 5 on Ryan Road and converting the city’s unused jail facility into a police training center. The budget allocates money for a new fire engine and 17 police vehicles as well.
On the transportation front, over $12 million has been earmarked for road reconstruction, targeting areas such as 15 Mile Road, Dobry Drive, and Clinton River Road.
Despite widespread council support, Councilmember Yanez expressed concerns during a May 6 meeting about the city’s plan to finance projects through debt. Budget Director Jennifer Varney stated that Sterling Heights will issue around $40 million in bonds, enabling the city to expedite work on various millage-funded efforts — with repayment drawn from future millage revenues.
“It’s a significant financial commitment,” Yanez said. “And the reality is, the economy’s future is unpredictable.” He also questioned whether residents were fully aware that bond financing would be used when they voted for the tax measure.
Mayor Michael Taylor defended the approach, arguing that early investment delivers immediate value to residents. “People want to enjoy these improvements now,” Taylor said, referencing amenities like the proposed pickleball center, the upcoming Red Run Park, and citywide tree planting.
By using bond proceeds, Taylor emphasized, the city can provide these benefits sooner rather than later.
Additional Budget Highlights
Finance Director Varney attributed much of the general fund increase to rising personnel costs, including salaries, retirement contributions for fire and police staff, and higher health care premiums.
Several late-stage amendments were approved in April, including the addition of streetlights and landscaping along Metro Parkway between Van Dyke Avenue and Utica Road — an area currently lacking median lighting and greenery.
Another adjustment will relocate the entrance of Donovan Park to improve public safety. Additionally, the city will initiate a feasibility study on stormwater management, which could guide future decisions about launching a dedicated stormwater utility and related conservation strategies.
