Voters interested in the ballot proposals on the City of Dearborn’s Nov. 8 ballot can find out more by reading an information sheet on the three questions.

Click here for printable version of this information

 Proposal 1: Operating Millage

 What does this ballot proposal ask voters to do?

      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.

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

      $187 a year.

      The average Dearborn home has a taxable value of $53,435.

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

      Five years or less.

      Each year, the city Council would have the authority to levy the number of additional mills necessary.

 Why are voters being asked to decide?

      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 in Dearborn in 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 average Dearborn home paid $948 in operating taxes. Now, the owner of an average Dearborn home 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.

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

      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.

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

      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. 

What specific steps has the City taken to reduce costs?

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

      The following savings 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. 

Why can’t the City just sell assets like Dearborn Towers and Camp Dearborn?

The City will sell assets when it makes economic sense. The sale of any City facility would be a one-time financial boost, not an ongoing source of revenue.

• In 2007, voters authorized the City to sell Dearborn Towers in Florida after certain conditions were met. As of October 2011, the City had an agreement to sell Dearborn Towers. The current budget assumes a sale by June 30, 2012.
• Camp Dearborn is zoned by Milford for recreational use only, and so the pool of potential buyers is extremely limited.
• Because selling Camp Dearborn is not a realistic option, the City continues to pursue ways to increase revenue at Camp and to keep it attractive for future users.
• For the last three years, Camp Dearborn has received no money for operations from the City’s general fund.  So, Camp has not taken money away from the operation of any other City program financed by the general fund.       

My overall property tax bill has not decreased in line with the drop in property values. Why is this?

      It is important to note that you pay other property taxes, not just the City’s operating tax.

      The City also levies other voter-approved property taxes.  Voters approved a tax to pay for the construction of the federally-mandated Combined Sewer Overflow (CSO) project in 2004. This project reduces pollution in the Rouge River.  The impact of that new tax took effect about the same time property values began to decline.

      That CSO property tax represents about 21 percent of your total city tax bill.

      Without the addition of that new voter-approved tax, the taxes you pay overall to the City would have decreased because of the decline in your property value.

      There is also a voter-approved property tax to pay for the construction of the Ford Community & Performing Arts Center. That voter-approved tax will expire in Fiscal Year 2013.

      In addition, you pay a tax dedicated to garbage and rubbish collection.

      You also pay taxes to Wayne County and the Dearborn Public Schools, as well as other agencies, and the City has no control over those tax rates. 

      It is important to note that for every $1 of property tax you paid in 2011, only about 33 cents was allocated to the City. 

Proposal 2: Library millage 

What are voters being asked to do?

      State law allows voters to dedicate one mill to offset the cost of providing library services. In Dearborn, one mill would raise about $3.5 million.

      The library is currently financed through the general fund. Having a dedicated millage would reduce the need for the library to compete with other departments for general fund money. It is the intent, however, that general fund money could still be directed to the library if needed.       

How much would this tax increase cost the owner of an average Dearborn home?

      About $53 a year. 

If approved, how long would the millage last?

      No more than 10 years. 

If approved, would this mean the restoration of Snow Branch or prevent further branch closings?

      The intent of the request is to provide a source of revenue to ensure some stability in library services. This does not mean the restoration of Snow Branch or a guarantee of the current number of branches. It would, however, provide resources for ongoing operational and capital costs as the library explores new ways, including increased use of technology, to provide access to information and services that best meet customers’ needs now and in the future. Meeting these needs must be accomplished in a way that is economically sustainable. 

Proposal 3: Elimination of the Civil Service System 

What are voters being asked to do?

      To determine if the Civil Service System should be eliminated from the City Charter.     

What does the Civil Service System do?

      The Civil Service System applies to certain City of Dearborn employees. Generally, the Civil Service System was intended to set the policies for hiring, promoting and terminating employees.

      It is overseen by a five-member appointed body that serves without pay.

      Dearborn is one of the few cities in Michigan that still has a Civil Service System. Its policies do not apply to part-time employees, certain management or professional positions, or appointed positions. 

What other representation do employees have regarding work-related issues?

      Most fulltime employees are covered by union contracts, which take precedence over Civil Service System policies. Contracts negotiated with labor unions cover wages, benefits and work rules. 

If Proposal 3 is approved, would anything replace the Civil Service System?

      The proposal leaves open the opportunity for the creation of a Human Resources Commission to oversee any employment issues for City of Dearborn employees that are not already covered by their union contracts.