Rochester Hills City Council on Monday, September 25, approved the city's 2018 fiscal year budget, which includes nearly $130 million in projected revenues and expenditures, an overall decrease of about 9.5 percent from the previous year.
The annual budget cycle runs from January 1 to December 31 each year. The 2017 budget was approved last September at about $130.3 million.
Council also approved millage rates for the city, at 10.4605 mills, which makes up about 25 percent of the city's overall revenues, or about $32.6 million in 2018. That millage rate is the same as the previous year, meaning the budget includes no tax increase to property or business owners.
City council members met with city department heads at a special meeting in August to hash out details of the budget. Council met again on Monday, September 11, to approve millage rates and hold a public hearing on the proposed 2018 budget. On Monday, September 25, council unanimously approved the 2018 budget.
Of the nearly $130 million in expenditures, about 34 percent consists of public services, such as water and sewer; 18 percent will go to public safety, which includes police and fire; and 15 percent to general government operations. About 13 percent, or $16.9 million, is dedicated to capital outlay projects; and three percent ($3.67 million) to parks and recreation.
Rochester Hills Chief Financial Officer Joe Snyder said public service, public safety and capital outlay represent about 65 percent of expenditures. He said that amount – about $84 million – represents the city's commitment to public safety and infrastructure management.
Council, during the budget process, agreed to set aside funding from the city's local street fund to support a $5 million local street rehabilitation program over the next three years. The city is also redirecting funding from its cemetery perpetual care fund for a cemetery maintenance barn.
"Both of these changes were made to preserve funding for the general fund balance," Snyder said.