Archive for November 1st, 2011

City of Dearborn Explains 3 Critical Ballot Proposals

Tuesday, November 1st, 2011

The City of Dearborn is finally going on the offensive, working to explain three critical ballot proposals in emails to residents and local media outlets.

While there has been a lot of emotion around what proposals to support, the operating and library millage are ones that need to be passed if Dearborn is to maintain its current level of services.

Below is information about each proposal from the City ofDearborn.

 

Proposal 1: Operating Millage

Q: What does this ballot proposal ask voters to do?

A: 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.

 

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

A: $187 a year. The averageDearbornhome has a taxable value of $53,435.

 

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

A: Five years or less. Each year, the city Council would have the authority to levy the number of additional mills necessary.


Q: Why are voters being asked to decide?

A: 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 inDearbornin 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 averageDearbornhome paid $948 in operating taxes. Now, the owner of an averageDearbornhome 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.

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