Dearborn City Council Passes Hammoud's $128M Budget

DEARBORN, MI — Dearborn City Council voted 6-1 Tuesday night in favor of Mayor Abdullah H. Hammoud’s first budget proposal.

The $128 million budget will reduce the city’s $22 million structural deficit by roughly $20 million, paving the path to structurally balance the city's deficit by the Hammound administration’s second year, officials said.

The administration inherited the shortfall after voters declined to renew the city’s supplemental operating millage last November.

"With so many challenges ahead, we approached this budget process with meticulous attention, but more importantly, compassion and care," Hammoud said. "In the end, we offered a path forward that resulted in no layoffs, no service cuts, and the long-term preservation of retiree benefits."

The budget includes several new investments, including a first-ever comprehensive study of Dearborn’s water and sewage infrastructure, geared specifically toward preventing floods. The study will also provide a roadmap for the full greening of the city to better manage storm runoff and intense rainfalls.

The budget also provides investments in parks and recreation, including free pool entry for Dearborn children 13 and under, three new soccer fields, basketball and tennis courts and splash pads.

Funds were also allocated to address the city's growing rat problem by expanding a vector control program designed to curb the rat population growth across the city.

Officials also look to address speeding and hazardous driving, which is a top concern of many city residents. The budget will allow officials to implement speed humps, radar signs and redesign streets to facilitate safe road conditions for drivers, cyclists and pedestrians.

The new budget also includes deductibles of $250 for post-Medicare retirees and $500 for pre-Medicare retirees under 65, while other retiree plans remain unaffected. The administration pre-funded the deductibles for the first two years through new Healthcare Reimbursement Arrangements (HRAs) and created a hardship provision that exempts anyone who cannot afford the changes based on their income.

"These changes are about preserving this benefit for the long-haul, not just for current employees but also those who have yet to retire," Hammoud said. "We need not look far to imagine where we were headed before. With the support of the City Council, we can now imagine a more certain future for this benefit and for the city more broadly."

Hammoud also amended his own health plan and that of his senior staff to a $2,000 deductible plan for individuals in the budget.

All documents and information for the Fiscal Year 2023 budget can be found at www.cityofdearborn.org.