Dearborn Voters Asked to Renew Operating Millage in Aug. 2 Election

DEARBORN, MI — Dearborn voters will be asked to continue the city's temporary operating millage rate at its current level when they go to the polls in the Aug 2 primary election. Failure to approve the 3.5-mill supplemental levy could result in program cuts and service interruptions, city officials said.

Polls are open from 7 a.m. to 8 p.m. The Voter Information Center at www.michigan.gov/vote has answers to frequently asked elections questions, including finding your polling location and viewing a sample ballot.

The ballot proposal, called Proposal 1, was originally approved in the November 2011 election. The ballot proposal keeps the same tax rate limitation that is currently in place. The 3.5-mill tax raise about $11.1 a year to support police and fire services and quality of life programs.

Property taxes are the main source of revenue for the city, but a drastic drop in property values brought on by the last recession caused a significant decline in city revenue, city officials said. Though the economy is improving, state law prevents the city from recovering the lost revenues at the same pace that property values are currently rising.

In addition, the state has continued a policy of disinvesting in cities by diverting dollars that used to help to provide local services, officials said. The result of these two actions makes it more difficult to maintain the number and level of services Dearborn residents have come to expect.

In response to these and other financial challenges, the city already has cut about $12 million a year in expenditures, including making significant reductions in staffing levels.

During a League of Women Voters public forum on July 12, Mayor John B. O’Reilly Jr. explained that there is no other revenue source for the $11.1 million a year generated by the 3.5 mills and that its renewal will be key to successfully navigating the challenges ahead.

“Residents should remember when considering this proposal that the number and level of services the City provides have always set Dearborn apart from other communities,” O’Reilly said in a statement.

“If it is not renewed,” he continued,” we would have to adjust how we deliver services and reduce the number of services we provide.”

A community task force of leaders looking at the future of Dearborn and representing business and civic, cultural, nonprofit and veteran organizations endorsed the continuation of the tax rate this spring, and the City Council voted to place the millage renewal question on the August ballot.

The average taxable value of a residential property in Dearborn is $51,325. So for homeowners, the average cost of renewing the 3.5 mills is about $179 a year.

Statewide changes in personal property taxes on commercial and manufacturing entities also impact city revenue, and, under a new state law, a defeat of Proposal 1 would trigger additional losses.

“If we want to retain the same kind of services, we have to have enough revenue to make that work,” O’Reilly said, emphasizing that Proposal 1 does not increase the current operating tax rate.

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