The City of Dearborn is finally going on the offensive, working to explain three critical ballot proposals in emails to residents and local media outlets.

While there has been a lot of emotion around what proposals to support, the operating and library millage are ones that need to be passed if Dearborn is to maintain its current level of services.

Below is information about each proposal from the City ofDearborn.

Proposal 1: Operating Millage

Q: What does this ballot proposal ask voters to do?

A: Determine whether to temporarily raise the authorized level of the City’s general operating tax rate by a maximum of 3.5 mills for a maximum of five years. The operating tax rate is the most critical source of funding for most City services.

Q: How much would 3.5 mills cost the owner of an average Dearborn home?

A: $187 a year. The averageDearbornhome has a taxable value of $53,435.

Q: If approved and levied, how long would the temporary tax rate increase be in place?

A: Five years or less. Each year, the city Council would have the authority to levy the number of additional mills necessary.

Q: Why are voters being asked to decide?

A: Because of a structural budget deficit, the City is facing about a $20 million difference in what it costs to offer current services and facilities and the revenue the City takes in.  Revenue for essential City services has declined significantly in recent years because of the decline in property values.

For instance, the value of an average home inDearbornin Fiscal Year 2008 was $69,583. Now it is $53,435. Overall, the City has lost about 16 years of growth.

In Fiscal Year 2008, the owner of an averageDearbornhome paid $948 in operating taxes. Now, the owner of an averageDearbornhome is paying $801, or $147 less, in operating taxes. If the 3.5 mills are approved and levied, the owner of the same home would pay $988. Other sources of revenue for essential City services have also declined significantly while at the same time costs have risen.

Q: If the temporary tax rate increase is approved and levied, what do City officials say would happen during the next five years?

A: The City’s intention is to continue to align the number and types of services and facilities it offers with the revenue that is available to pay for them. The City also will continue to develop new ways to deliver services and operate facilities so their costs are in line with economic conditions.

Q: If approved and levied, would the 3.5 mills restore services and facilities that have already been reduced or eliminated?

A: If approved and levied, the temporary tax rate increase would raise about $12.25 million more in revenue. The City, however, is facing more than a $20 million shortfall, so the difference of about $7.75 million would need to be addressed in other ways. The intent of asking for an additional 3.5 mills is to have more resources and time than exist under the current tax rate to transition to a level of service that is economically sustainable.

Q: What specific steps has the City taken to reduce costs?

A: The City has been proactive in its cost reductions since 2001, even before economic conditions were generally understood to be in decline.

The following actions have resulted in more than $12 million per year.

• More than 200 fulltime positions have been eliminated, which represents 35 percent of non-public safety positions.
• The City has reduced pension, health care and other benefits for new employees; has reduced vacation and sick days for general employees; and is negotiating with general government employees for a 10 percent compensation reduction in the current fiscal year.
• The comprehensive program to replace fleet vehicles was cancelled and the capital investment program has been deferred.
• Technology has been implemented to reduce costs.
• Four bonds have been refinanced to generate cost savings.
• Duplicative services have been eliminated, including the Dearborn Health Department.
• Two of the eight outdoor pools and one of the four library buildings have been closed.
• Street sweeping and grass cutting have been outsourced to save employee and equipment costs; and departments have been restructured.

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