Where Does Your Money Go?

Glossary

Governmental Funds: These are the core services and activities of the City. They are funded primarily by taxes. Funds include General Fund, Special Revenue Funds (such as Roads, Fire, Police, Pathway, etc.), and Capital Improvement Funds.

Enterprise Funds: These are used when a government runs like a business. They provide services to the general public for a fee, and the goal is usually for the fund to pay for itself. Funds include Water and Sewer Operating, Capital and Debt and Solid Waste Fund.

Internal Service Funds: Similar to Enterprise Funds, these operate like a business, but they serve other departments within the government rather than the public. Funds include Facilities, MIS, Fleet and Insurance.

Component Unit Funds: These are legally separate organizations that are still "tethered" to the main government because the government is financially accountable for them. Funds include Brownfield Funds, Local Development Finance Authority (LDFA), and Museum Trust.

Trust and Agency Funds (aka Fiduciary Funds): The government acts as a "middleman" or a bank for this money. The money doesn't belong to the government; they are just holding it for someone else. Funds include Retiree Health Supplemental Trust, Cemetery Trust, and Green Space Trust.





The City’s expenditures are the dollars we spend to provide everyday services for residents—like police and fire protection, road maintenance, parks, water and sewer service—plus long‑term investments in buildings, equipment, and infrastructure. In FY 2026, we plan to spend $223.3 million across all City funds to keep Rochester Hills safe, well‑maintained, and a great place to live.

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Fiscal Sustainability and Accountability



This budget reflects City Council’s priorities and the City’s commitment to careful, responsible financial management. Rochester Hills is debt-free, meaning all city services and investments — from parks and infrastructure to public safety — are paid for with current revenues, not borrowed money.



The City continues to maintain a AAA bond rating, strong financial reserves, and one of the lowest tax rates in Oakland County, ensuring long-term stability while delivering high-quality services to residents.

Read the entire budget book

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Strong Infrastructure Investment

The City allocates over $44.8 million for capital outlay in 2026 — funding roads, fire apparatus, City facilities, technology, pathways, parks, and fleet upgrades that support daily life and emergency readiness

Capital Improvement Projects

The south Adams Road pathway connections will connect the existing pathway to Marketplace Circle, the surrounding bus stops and nearby major apartment complexes. It also will connect the pathway on the east side of Adams Road, across from Marketplace Circle, to the Clinton River Trailway. This project has been awarded the Access to Transit Grant from Oakland County. 

Hamlin Road's two eastbound lanes before and after the Crooks intersection are in poor condition and will be reconstructed in 2026. Good news for every resident who has to drive that stretch of Hamlin.

Nowicki Park construction process is underway. The park is 35 acres and will include walking trails, a community room, outdoor pavilion, 1-acre playground and 3+ acre dog park, with small and large dog areas. Nowicki Park is expected to open in 2027.