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MADISON HEIGHTS — The budget for the 2026-27 fiscal year was adopted by a unanimous vote of the Madison Heights City Council on May 11.
For a typical home with no change in ownership or major home improvements, the overall tax bill will stay relatively flat, and possibly even decrease, said Melissa Marsh, the city manager — although she noted that city taxes are only a portion of a resident’s total bill.
The overall budget approved by the council goes into effect July 1, the start of the city’s fiscal year, and weighs in at $68.98 million, of which $43.4 million is allocated to the general fund.
By comparison, the amended total for the current fiscal year is about $74.4 million, with a general fund allocation of about $47.2 million.
The new budget is supported by a tax rate of 24.9022 mills, which is a reduction from the current tax rate of 25.4572 mills. The city collects $1 for every $1,000 of a home’s taxable value, multiplied by the millage rate.
The rate includes millages such as general operating (13.5384 mills), neighborhood roads (1.8131), solid waste (2.3984), senior citizens (0.4305), Public Act 345 police and fire benefits (6.5015), Public Act 359 publicity (0.0417), and Chapter 20 drain (0.1786).
Beyond city taxes, residents of Madison Heights are also taxed by other jurisdictions such as their local school district, county government, and regional authorities like the Detroit Institute of Arts and Oakland County Transit.
The rates for water and wastewater were recently increased by a combined 5.128% for bills processed on or after July 1, 2026 — the result of operational cost increases passed onto the city by its provider, the Great Lakes Water Authority. Residents were mailed notices about the changes.
To balance the budget, around $427,800 from the city’s fund balance was used. The unreserved fund balance is now projected to be $13.9 million.
R-4 and more
The council budgeted $10.3 million in capital improvements for the 2026-27 fiscal year, which includes $3.9 million for neighborhood roads, representing the last year of R-3 funding.
Proposal R-4 will go before voters on Aug. 4. If approved, this 2-mill, 10-year millage will cost the average Madison Heights taxpayer about $126 a year to continue neighborhood road work.
Should it fail, the city may resort to special assessments, where the cost of road work is assigned to households along the road, and either paid upfront or over time — usually 15 years.
If R-4 passes, it will replace R-3. The new R-4 would allow the city to once again levy the full 2 mills, whereas R-3 had been reduced over time by the Headlee Amendment.
Other items included in the $10.3 million for capital improvements are $2.3 million for major and local roads, $986,000 for water and wastewater systems, $1.5 million for public safety, $769,000 for general government, and $867,000 for parks and the library.
Some specific purchases include a new training mannequin for paramedics, a new fire hose and thermal imaging camera, new emergency medical equipment, body cameras and in-car camera upgrades for police, new body armor and three new police vehicles, roof repairs at Station No. 1, ballfield rehab at Civic Center Park, a shade structure for Rosie’s Park, and more.
The budget features no notable changes to staffing levels across city departments. Marsh described the budget as “strategically conservative but forward looking,” working within constrained revenue due to external factors like the interaction between the Headlee Amendment and Proposal A — two state policies that limit what a city can collect from its tax base to 5% or the rate of inflation, whichever is less — and declining state-shared revenue levels.
Combined with rising costs due to inflation, Madison Heights finds itself in the same challenging position as many Michigan cities, trying to pay for infrastructure and other needs without overburdening taxpayers.
At the May 11 meeting, Mayor Pro Tem Bill Mier called attention to the lower millage.
“I just want everyone to note that your tax rate is going down by little over a half mill, so any increase in your taxes this year will be because your house’s value increased, not because we increased the tax rate,” Mier said.
City Councilmember Sean Fleming added, “I’d also like to make a note to the public that this budget doesn’t include the road millage. … This budget is run by a millage that is separate from the residential road millage we’re trying to hopefully renew in the future here.
“I think we’ve done a good job on the operating budget,” he said. “Even lowering the millage by just a bit makes a big difference for some people.”
Mayor Corey Haines was the last to speak before the vote.
“It’s important to note that the (budget’s) millage is decreasing, and it’s more of a decrease than any increase from Proposal R-4,” Haines said. “So, if R-4 does pass (in the election Aug. 4), it’s still a net reduction in taxes. Unless your home goes up in value — then everything goes up a little with that. But again, taxes are not being raised (by the city). They’re actually slightly lower, which is a good thing.”
UPCOMING MEETINGS:
The city of Madison Heights will hold community meetings where residents can learn more about Proposal R-4 and other issues facing the city. The meetings will be held on the following dates:
• 10 a.m. June 13, Civic Center Park, 360 W. 13 Mile Road, during the Bike Rodeo.
• 6 p.m. June 15, Madison Heights Public Library, 240 W. 13 Mile Road, in the Breckenridge Room.
• 6 p.m. June 18 and June 25, Madison Early Childhood Center, 25601 Couzens Ave.
• 6 p.m. to 8 p.m. June 28, Civic Center Park, 360 W. 13 Mile Road, at the Festival in the Park.
• 3 p.m. June 29, Active Adult Center, 260 W. 13 Mile Road, next to City Hall.
