Politics & Government

Dearborn City Council Passes Budget for 2013-2014

The city's tax rate will be reduced by .96 mills for the 2013-2014 fiscal year.

After weeks of budget hearings, the Dearborn City Council formalized its new balanced budget May 28 in a 7-0 vote.

The budget includes roughly $100.8 million in general fund revenues and more than $100.4 million in expenditures. In addition, $363,480 will be added to the city's fund balance.

With the new budget, the fund balance is projected to be just over $13.9 million by June 30, 2014.

Jim O'Connor, director of finance for the city, said the budget does not reflect a potential bond and capital budget for the Dearborn Administrative Center; a contribution of $8.5 million from Severstal North America for the new city hall; and the proposed consolidation of the Dearborn and Melvindale fire departments.

"All of those issues are still pending," O'Connor told the council.

Other highlights from the 2013-2014 budget include:

  • The proposed city tax rate is 25.9 mills, a 0.96 mill reduction from the current fiscal year.
  • Garbage and rubbish tax levies will fall from 1.94 mills to 1.91 mills.
  • Water and sewer rates will increase 5.8 percent.
  • No pools will close for the 2013-2014 fiscal year.
  • The Ford Community & Performing Arts Center debt of 0.65 mills has been retired.
"The city has continued to make strides to hedge against budgetary challenges. The problem is ongoing declines in property values and significant inflationary trends continue to erode the successes that are accomplished," O'Connor said in a previous interview. "We work to reduce costs, and at the same time costs go up as property values — our main revenue source — remain relatively flat.

"It's a tough situation. We have to live within our means and do the best we can with the resources we have to keep people safe while providing good quality of life amenities our residents have come to expect," O'Connor said.

The fiscal year begins on July 1, 2013.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here