Dearborn Budget 2013: What You Need to Know
A public hearing on the budget will take place May 14 at 6 p.m. in the City Council Chambers at Dearborn City Hall.
Dearborn city leaders have been meeting for several months to discuss the details of the fiscal year 2013 budget, which begins July 1.
On May 14 at 6 p.m. at Dearborn City Hall, Dearborn residents will be given a chance to express their concerns about the proposed 2013 budget.
Think the city needs to make more spending cuts? Want to know why certain capital improvements are being made? Don't want to see the voter-approved 3.5 mill increase enacted? This is the time to speak up.
Here's what you need to know as Dearborn heads into another budgetary year. Click the links to read more details about specific budgetary discussions.
Expenditures Outpace Revenues
Even if the Dearborn City Council levies the full 3.5 mills additional afforded to them by voters, the fiscal year 2013 as proposed by Mayor Jack O'Reilly still stands at $8.4 million over projected revenues.
This is due, in large part, to a combination of rising personnel costs–including pensions and health care expenses–and continued drops in the taxable values of property. From 2011 to 2012 alone, taxable value in Dearborn has dropped 6 percent.
The property value that generated $1 of tax revenue for the city in 2008 will generate 73 cents in 2013.
Read more about the budget outlook here.
No Facilities Will Close in 2013
Although expenses continue to rise, O'Reilly has maintained that no facilities are expected to close within the next fiscal year.
Instead, the city has pushed for alternative funding options for several facilities–as well as continued consolidation of departments.
The Museum Guild of Dearborn has been charged with the task of raising funds to cover the Dearborn Historical Museum's costs by 2015 when the department's funds from the sale of the Andiamo property run out.
City Council also recommended that the 19th District Court–which has seen continued jumps in cases, but not in revenue–focus on ensuring that lawbreakers either pay their fines, or enter into the alternative work program.
The city's six small pools–two of which have not been open since 2010–are hoped to be funded by neighborhood Special Assessment Districts, which would place operating and improvement costs in the hands of the households surrounding the pools.
However, that plan has stalled with questions from the Save Our Pools group about how the plan will be implemented, as well as concerns about the proposed 2013 budget.
In 2012, budget cuts led to the shuttering of two city pools, one library, and the entire Health Department. It was projected in 2011 that all small pools and the remaining two branch libraries, as well as the Dearborn Hills Golf Course, Dearborn Ice Skating Center and one Dearborn fire station would close by 2015 if no additional revenue was realized.
It's possible that more closures could be on the way in future years if revenues remain stagnant.
Police, Fire Budgets Are Mostly Untouchable
Public safety positions currently make up 51 percent of the city's full-time staff. In both the police and fire departments, personnel costs account for around 90 percent of expenditures.
In budget talks, Dearborn City Council nitpicked over numbers, including the money-making possibilities of ambulance services, and the costs of putting police officers through training.
But with minimum staffing provisions still in place, the biggest savings will come only through union negotiations, which are currently ongoing. Several City Council members have voiced opinions that personnel costs must be cut from the public safety budget for the city to make progress toward financial stability.
Dearborn Will be Broke by 2015
Mayor O'Reilly agrees that cutting personnel costs are a major part of the answer to Dearborn's budget woes, but how those cuts are implemented remains to be seen.
All city employees are being asked to contribute to a 10 percent cut in overall personnel costs. These sacrifices could come in many forms: A larger share of health care costs will be placed on employees thanks to new state mandates; three non-public safety positions were cut; and ongoing union negotiations are focusing on wage, salary or staffing cuts.
The bottom line is this: Without more revenue, or bigger cost cuts, Dearborn's general fund will be in the red by nearly $8 million within three years–even with a full 4.5 mill increase in taxes.
To view all proposed 2013 budget documents from the City of Dearborn, click here.
Dearborn Taxpayer
7:43 am on Tuesday, May 8, 2012
Here we go again! It's budget time for the City of Dearborn but the story remains the same. The city continues to spend more, taxpayers get hit with millage increases, but get less and lower quality city services. The mayor and council will need to pull a rabbit out of their negotiating hat with the police and fire unions in order to keep the city from going broke by 2015. If the rabbit turns out to be duck that only quacks but doesnt' deliver the cost savings promised (like our current Mayor does), taxpayers will need to vote out the mayor and the "rubber stamps" on the Council in 2013!
POWDERBURNER
8:55 pm on Tuesday, May 8, 2012
We're not exactly "hit" with millages. As far as I know, they get voted on and, you can brand me as racist and biggoted, but we're outnumbered by a certain entitlement segment of our city who votes for all these increases while paying for none of 'em. They never had it so good, and we never had it so bad.
Mootown Voice
11:24 am on Wednesday, May 9, 2012
POWDERBURNER, how else do you expect to raise three households of kids? Polygamy gets expensive. Without all the freebies our neighbors wouldn't be able to pay for necessities like car insurance.. oh wait, they don't.
Frank Lee
9:42 am on Tuesday, May 8, 2012
How can this mayor in good faith expect union workers to take any concessions after he has given himself a raise and his appointees 10% pay increases above their already six figure salaries. How can this mayor propose closing branch libraries, when he wants to build another train station for a high speed rail program that does not exist and will not exist for at least 5 years. This rail station is budgeted at costing Dearborn taxpayers almost 300 k a year, not funded by the Federal government. How can he propose closing local pools when he wants to spend almost 5 million building a waterpark at Ford Woods? A park used primarily by non residents. How can he propose closing anything when he wants to spend 20 million redeveloping a new city hall, and 9 million building a convention center connected to an outmoded and defunct hotel. This mayor wants to burdon children, seniors, and homeowners with cuts in services and extra taxes but reward himself, appointees, and his financial supporters with raises and new projects
randy Davis
2:21 pm on Tuesday, May 8, 2012
What about the Amish cabins at camp Dearborn, the segways the police department bought, the HUMVEEs the National Guard threw away that the police department picked up spent more than $50,000 to fix and they still don't run! The IT department that doesn't have time to help Dearborn departments but the Mayor has helping Dearborn Hgts. I'm feed up!
Lee Jacobsen
3:59 pm on Tuesday, May 8, 2012
How can one express concerns about a 2013 Dearborn budget when it is not made available to the residents to review? The only budgets I could locate are here.........interesting that there was no link to this site, yet the discussion was about the 2013 budget. Jessica??
http://www.cityofdearborn.org/government/city-services/public-information/latest-news/782-proposed-budget-docs
Jessica Carreras
4:26 pm on Tuesday, May 8, 2012
Thanks for pointing that out, Lee. I will make the link to the budget documents more accessible in this article.
Lee Jacobsen
5:31 pm on Tuesday, May 8, 2012
Just a few points of interest.....
Being a public official in any capacity pays well in Dearborn.
The Justification costs have now been changed to 'H.I. (Health Ins.)Waiver Bonus', and average anywhere from $2000 to $7000 per worker or dept. This , of course, is a bonus paid to a city employee for picking another form of health insurance rather than the city's, something the private sector dumped decades ago. I say, pick one coverage or the other, but don't pay them for doing it. That would save around $300,000 or more (I haven't added it all up) per year.
Longevity pay, an entitlement or bonus for staying around a long time, usually over ten years, is at least ten times that of the Waiver Bonus, and totals in the millions for the 2013 budget, all on top of the pay that the employees already earn. The private sector allows up to 4 weeks of vacation for longevity, and usually stops there. Not the longevity for govt, which increases each year and has no maximum. Think the Mayor makes $$, check this out. http://www.michigancapitolconfidential.com/16501
Longevity bonuses are nice if the city can afford it, but costs above and beyond already generous salaries and wages need to be reduced, and brought back to what we can afford. This link also mentions Dearborn's longevity costs,
http://www.michigancapitolconfidential.com/16485
and interesting that bonuses never seem to be discussed with a thought toward reduction.
marooned in Dbn
11:06 am on Wednesday, May 9, 2012
I read the story. This is only what I can call the cannibilisation of the typical resident of Dbn. The more the police make...the more in hole the city gets. The "taxpayer" gets asked to surrender more of their non-existant money thru more house taxes, and at the end, it is never enough.
Rich
6:00 pm on Tuesday, May 8, 2012
Hhmmmm! Let's see - by 2013 I'll be outta town all together. In fact by the end of this month my business will be closed.
"I used to care BUT now I take a pill for that!"
Frank Lee
2:59 am on Wednesday, May 9, 2012
Citizens need to stop the insanity and attend this council meeting and ask why OReilly thinks that partnering with a defunct hotel, that the Hyatt saw as hopeless, will be good for Dearborn's economy ? Why will building a 5 million dollar aquatic center at Ford Woods, a park primarily used by non residents be good for Dearborn?
Why will building a 20 million dollar city hall be better for Dearborn than modernizing our historic City Hall? How does spending 1 million dollars on soccer fields in Crowly Park help Dearborn? Why does Dearborn need to manage another train station when high speed rail is years away at best, couldn't this be done by Amtrack, or the Railroad Company that owns the tracks? Why does this mayor expect dedicated blue collar Dearborn employees to take major concessions when his non resident appointees get outrageous raises? The pathetic vanity of this mayor is only superseded by the foolishness of our city council and the apathy of our residents. Wake up Dearborn or you will be taxed Dearborn taxes for Melvindale services
marooned in Dbn
11:00 am on Wednesday, May 9, 2012
amen