City budget, water rates okayed for 2025-2026

By Grace Lovins

Birmingham City Commissioners approved the 2025-2026 fiscal year budget and water and sewer rates during the Monday, May 19, meeting, giving the green light for the roughly $53.8 million budget to begin on July 1, 2025, for the fiscal year.

The city’s budget shows major expenditures toward public safety, accounting for $21.4 million of the general fund, and public works, which includes streets, sidewalks, water and sewer utilities and the parking system, accounting for $6.1 million of the general fund. Overall, city expenditures are decreasing from last fiscal year’s budget by approximately five percent.

Finance director Mary Chavez said that following the April 26 budget hearing, city staff incorporated the commission’s feedback and were able to adjust the budget for certain items, namely road projects.

Commissioners emphasized prioritizing pavement improvements to multiple streets—Cole, Oak and E. Lincoln—during the public hearing. Chavez explained that the budget was adjusted to include the resurfacing of Cole Street and Oak Street had already been planned for the year. She said that the city plans to include E. Lincoln in the next fiscal year budget.

Other adjustments to the budget following April’s hearing include an increased budgeted amount for assessing services provided by Oakland County due to increased rates, as well as an increase in the planning department budget for wayfinding initiatives. Changes were also made to reflect the final sewage and storm water costs from the Oakland County Resources Commission (OCWRC), which Chavez says were higher than originally anticipated.

After commissioners unanimously approved the budget in a 5-0 vote, they moved on to approve the water and sewer rates for the fiscal year. Chavez explained the water rates are recommended to increase to approximately $11 per month or a total of $134.10 for a year for the average homeowner. Sewer rates will increase to approximately $13 per month or $145.80 for the year for the average homeowner.

Chavez said the water rates are increasing in part due to funding for capital improvements to the water system, and the sewer rates similarly are increasing due to higher cost of stormwater rates and needed maintenance of drains.

The commission unanimously, 5-0, approved the increased water and sewer rates for the fiscal year. Commissioners Andrew Haig and Jason Emerine were absent from the meeting.