The cost includes overtime for nearly 200 police officers.
Some argue the late singer's family should have paid for its own security rather than have the city foot the bill, especially since the public wasn't allowed anywhere near the star-studded event.
City officials say police protection and barricades were necessary for public safety.
Houston died Feb. 11 after drowning in a bathtub at the Beverly Hilton.
The 48-year-old singer had cocaine in her system at the time of her death. Her death was ruled as accidental and coroner's officials cited heart disease and cocaine use as contributing factors.