Mayor O’Reilly: Dearborn at ‘A Defining Moment’

Faced with decreasing property tax revenues and increasing city expenditures, Dearborn city leaders will be taking a critical look at separating the “need to have” from the “nice to have” services as a way to make up for lost revenues, Dearborn Mayor John B. O’Reilly, Jr., said Wednesday in his State of the City address.

Mayor John B. O'Reilly, Jr.

“We’ve already lost about 5 percent in property tax revenue in the past two years,” O’Reilly said. “We expect a 10 percent drop this year. And we’re anticipating another 10-15 percent in the next two years. In total, that’s a decline of at least 25 percent . . . If we take no action, make no hard decisions now, we’ll have a $20 million gap between our revenues and expenditures in just the coming year alone.”

Exactly where the cuts will come from is being studied but O’Reilly told the audience at the Ford Community & Performing Arts Center Wednesday evening that “everything but the essentials is on the table – and even those essential services may have to be delivered differently.”

“Because of that, I’m not going to shy away from considering any idea regarding our programs and services, even the controversial proposals.”

To make those tough decisions, both the mayor and City Council will have to work together and accept some of the recommendations from the mayor’s recently created Task Force. The group of 28 people from across Dearborn will report their recommendations in May, helping define services and transforming them, too, O’Reilly said.

Last year, a recommendation to close some underutilized city pools as a way to save the city money was met with very vocal responses against the idea by residents. That was enough to convince city leaders — all running for reelection last year — to do nothing.

“We didn’t pursue the less costly alternative of the splash parks; and modest savings weren’t realized, meaning we’re facing even tougher financial decisions now,” O’Reilly said. “This is a process that we can no longer afford to repeat.”

O’Reilly said the city is going to need to look at whether some city services might be able to be converted into a regional operation where many communities could pool resources. Other ideas include trying to determine whether city facilities such as the Dearborn Hills Golf Course, Adray Ice Arena or even the Ford Community & Performing Arts Center could operate more efficiently with a business model, meaning each facility would cover all of their costs, including ongoing capital investments.

“We need to look at everything we do and ask: are we delivering this in the best possible way within our available resources? As tough as these questions may be, and as troubling the consequences they bring, they are relatively small ones.

“The real questions are: What do we want our community to be like in the future? What kind of Dearborn do we want for our children and our children’s children to have? I can’t answer those questions alone. That’s for us to decide together.”

Dearborn no doubt has some tough choices ahead. But as O’Reilly rightly pointed out in his speech, our city went through a similar rough time in 1983 when his late father was mayor. Dearborn emerged stronger because under his father’s direction, O’Reilly said, the city rejected the “business as usual” model; there was “political will” to make the unpopular decisions for the good of the community and because “citizens and businesses were engaged.”

Let’s hope the same is true this second time around.

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71 Responses to “Mayor O’Reilly: Dearborn at ‘A Defining Moment’”

  1. Turk182 says:

    I was not trying to take anything away from police officers or the service that “Homegrown” gave to the city,i was just making a point that it seems a bit unfair to settle a few contracts and when other ones are about to be negotiated the mayor starts talking about major cuts and layoffs. I wouldn’t call police officers fat cats either,there are plenty of fat cats in management in the city that don’t put their life on the line every day.
    Everyone on here is making valid points and has solid facts,i am calling for the owner of this site to research these points/facts and put the findings in the paper.

  2. oldalldayschoolmom says:

    In the east end of Dearborn, many people walk to the Esper Branch Library, which is an excellent example of a neighborhood service.

    There used to be a library in the south end of Dearborn, that is fondly recalled by people who used to live there and used to walk to that library.

    Perhaps I should amend my previous commment to read:
    “To see a future without neighborhoods is to look at Detroit.”

    Many folks walk to the Bryant library.

    What’s next? Book burning to make more space for _________ (fill in the blank).

    It would appear Dearborn has enough vacant buildings to house whatever Mayor O’Reilly has in mind for the empty space that would be created by implementing an e-library system.

    And, do you really trust this inept administration to implement such an undertaking.

    Or will they hand it off to some friend of relative for a fee at taxpayers expense?

  3. Turk182 says:

    “oldalldayschoolmom” makes a good point,everything looks and sounds good or looks good on paper,but the reality is this administration is not capable of correctly making any of their plans work. Look at all the construction jobs and land development projects,most half built and the city winds up in court.Look at the CSO project,the first one was a failure and this 2nd one is stopped half way through because of the expense and things not working right,like some of the structures collapsing,another indictment on both administrations.Look at the business deal debacle with Fakoury and all his buildings are empty and he is leaving town. Look at the criminal investigations and raids at city hall.
    Do we really trust this administration to now make more important decisions regarding the future,do we really think this administration is capable of getting any of it right?
    I do not.

  4. I disagree says:

    “In the east end of Dearborn, many people walk to the Esper Branch Library, which is an excellent example of a neighborhood service.”

    From how far away? Two or three blocks tops? I don’t believe very many people are walking to the Esper branch which is only 4 miles away from the main library. I also don’t believe that the rest of us should have to subsidize a branch library for the relatively few people who will walk to the existing branch libraries.

    It’s 2010 and cuts need to be made. The ability to walk to one of a couple branch libraries for people who happen to live in a several-block radius in order to surf the internet for free or to check out a book needs to end. It’s time to start thinking in terms of what will benefit the majority of residents and not a handful. Nice to have vs. need to have. Branch libraries aren’t needed. A service is NOT being taken away, it’s being made a few miles less convenient.

  5. A Dearborn Employee says:

    As a long time City employee I can tell you that we have not had a single pay raise in years, but looking over the minutes of recent Council meetings on City Web I have seen where the department heads have had their salaries increased, for example the Director of Public Works makes over $100,000 a year, while the Director of the new Residential Services is getting over $83,000 annually. I know that myself and my co-workers, among the dwindling number of Full Time employees left, don’t make half as much and are having to take on more and more responsibility and work load. When I started with the City there were almost 1,000 Full Time employees, now there are over 600, doing the same amount of work, with less resources, support, etc, while the administration’s answer is to hire more and more part time employees, many of whom have been caught taking hour long coffee breaks, go home for hours at a time during the work day, sleep on the job, and have been caught in the act over and over and nothing happens to them, yet they get pay raises!

    Norwood presided over the destruction of Building and Safety and gets a brand new job in the Mayor’s office in charge of Green Construction?? He couldn’t run the Building Department, so corrupt that 2 former employees when to jail due to a FBI investigation, and the former deputy director and senior building supervisor are up for trial for fraud, but somehow he is capable of working in the Mayor’s office? If that doesn’t tell the residents of this city something, I don’t know what will. I am in the neighborhoods of this city everyday and I see how it looks now compared to how it did just a few short years ago. I talk to residents in both East and West Dearborn and everyone I talk to is fed up with how the city looks and the direction it is going in.

    The department heads get raises, Norwood gets a brand new job, and the employees actually doing the work are being told to expect more work and more sacrifices. Dearborn is a mess and going to get worst.

  6. A Dearborn Employee says:

    By Shooshanian supported by Abraham.
    1-13-10. WHEREAS: The 2007 City Charter, Section 10.8 provides for a term of office for administrative department heads co-existent to the Mayor’s term of office (December 31, 2013), or until a successor is appointed, and Section 6.6 provides that the City Council “shall fix the compensation of appointed officers prior to appointments to the office” and Section 6.8 may authorize annual adjustments to salaries “equal to the average percentage of increases or decreases in salary paid to all full-time employees of the City and adjustments to benefit programs as received by all full-time employees of the City”, and
    WHEREAS: Data suggests a lower on-average compensation level for most of the City’s appointive positions; be it
    RESOLVED: That beginning January 4, 2010, the salaries to be paid to the following appointed officials shall be as hereinafter set forth:
    AMOUNT OF SALARY
    APPOINTED OFFICIALS PER ANNUM
    Police Chief $110,000
    Chief of Staff $109,629
    Corporation Counsel $105,842
    Director of Public Works $100,193
    Director of Finance $ 99,023
    Director of Management of Information
    Systems $ 97,553
    Fire Chief $ 95,236
    Director of Economic & Community
    Development $ 94,869
    City Assessor $ 75,000
    Director of Recreation $ 91,475
    Director of Housing $ 83,380
    Director of Residential Services $ 83,331
    Director of Public Information $ 83,129
    Director of Health (part-time) $ 37,899
    be it further
    RESOLVED: That pursuant to Section 6.8 of the 2007 City Charter adjustments to annual salaries may be authorized “equal to the average percentage of increases or decreases in salary paid to all full-time employees of the City and adjustments to benefit programs as received by all full-time employees of the City”; be it further
    12
    RESOLVED: That this resolution be given immediate effect.
    The resolution was adopted as follows: Yeas: Abraham, Darany, Hubbard, O’Donnell, Shooshanian and Tafelski (6). Nays: None. Absent: Sareini (1).
    By Darany supported by O’Donnell.
    1-14-10. RESOLVED: That in accordance to Section 6.8 of the 2007 City Charter, the City Council hereby sets the annual salary of the Deputy Fire Chief at $91,299; be it further
    RESOLVED: That this resolution be given immediate effect.
    The resolution was adopted as follows: Yeas: Abraham, Darany, Hubbard, O’Donnell, Shooshanian and Tafelski (6). Nays: None. Absent: Sareini (1).

  7. MyTwoSenseToo says:

    I believe Gov. Granholm recently combined some state departments. I have read that some cities have been combining thier departments as well.

    Glancing over A Dearborn Employees list of Dearborn Department Heads; I don’t see why City Hall couldn’t combine certain departments. It would cut salaries and employees.

    Just to name a few:

    Police/Fire Chief = Public Safety Manager

    Director of Housing/Director of Residential Services = Director of Housing and Residential Services

    Director of Health/Director of Public Information = Director of Health and Public Information

    JUST SAYING!!!!

  8. Turk182 says:

    “A Dearborn Employee ” added some good facts,why doesn’t Mr. SDeep or his associates do an interview article and confront Mayor “Kwame” oreilly with these facts and ask him why so many of his managers and department heads have all gotten hefty raises while the mayor had been planning cut backs?
    The city gets donations and money from other sources for homecoming but there is still a big cost that the city pays,what is that cost?
    Why doesn’t the papers do an article on the cities actual cost for “Home coming”?
    Is it because the papers in this town also work for the mayor?
    Is the Mayors plan really to cut out pools and libraries and staff and then have a big home coming party in august to celebrate?
    I am waiting for the mayors next big announcement that he has added Bobby Ferguson,Sam Riddle and Monica Conyers to his staff to help get us out of a deficit.
    I can no longer tell the difference between Dearborn,Detroit or Washington D.C’s politics.

  9. Mary Jo Durivage says:

    Citizens are making some very good points on this blog. Constructive comments need to be conveyed to the City Administration in a formal way. I hope the City will provide such a forum. I’m sure residents have many more comments and cost saving suggestions to share and it is good to be with others to help with the brainstorming.

    When considering pensions, why do the “highest three years” inlcude overtime? Pensions should be based on straight salary.

    A point about morale – how does Administration think employees feel about “working more with less” when adminstrators make a heck of a lot more money and certainly have more intangible benefits.

    MJD

  10. Wanting Better for Dearborn says:

    My Two Sense Too makes more sense than the Council people who are being paid to think.

    Turk182 – What about the real cost (I mean loss) the Performing Arts Center is? Do we make any money on any of the shows they put on? How few people have memberships to that gym? These are costly guarded secrets. I guess we will get those answers when we get the answer to where the millions in Guido’s war chest went.

  11. emanon says:

    No one dares do investigative reporting in the Press & Guido or the Times Herald. Hell, they don’t even publish most of the real crimes that happen here, like B & E’s & auto thefts. Spineless. Who’s afraid of Big Bad Jack?

  12. Wanting Better for Dearborn says:

    in answer to Emanon – EVERYONE is afraid of Big Bad Jack, so NOTHING gets done. The only person not afraid, Doug Thomas, is gone. We are left with a City Council who follows instead of leads. When will voters in this town wake up? This forum allows us to speak up and ask questions since the local papers won’t. Now, the real question is how do we get answers?

  13. Turk182 says:

    Everyone on here is making excellent points and factual points.Lets look at what people are saying and feeling. The administration and previous one has made bad decisions,bad business deals and now want to make bad cuts all while protecting and paying top wages to their DH/cronies.Some have added that money is missing or taken from former Mayor Guido’s campaign chest and that a lot of crimes are not reported by the papers in this city.Under 2 administration city hall has been investigated by the feds for illegal activity/corruption. Add the countless number of lawsuits by employees that were wrongly fired,harassed or had test scores changed and most, if not all,reached a monetary settlement with the city that most citizens are unaware of. These things have all been going on during the past two administrations and its interesting that most of the same people have all been left in place from the Guido Administration from the Chief of staff on down.The big question is what can be done? what can we do?
    I would love to see some type of public forum other than a council meeting where the citizens can tell the mayor their concerns and confront him with tough questions that hold him and his administration accountable.
    The ultimate obvious answer is that we must make a change at the top so that everyone under the top will retire,resign or be removed by the new Mayor and this city can finally start over fresh.

  14. concerned cop says:

    how bout just plain getting rid of the police chief. another sexual harrassment investigation is under way and the chief s discipline is an extension of the lt’s probation and then he doesnt even remove him from the supervision of the person he is harrassing, because this lt made sure a friend of the chiefs son got thru the backgound investigation so he could get into the police academy. this same lt is handling the FBI investigation now because the chief didnt like how the original investigator was handling it. so what does this lt do, he again harrasses this person, so now he gets 5 days off and is finally removed from supervision from this officer. remember this chief came from detroit pd, the most corrupt police dept in the country and he doesnt even live in the city and he s been on the job for over a year. i think that is a violation of the city charter. the mayor seems to think that all is well in the police dept, but i can tell you that the lid is about to blow off here. this chief needs to go before he turns this fine department into a little detroit and ruins it. get rid of him and his salary, we will be better off.

  15. Donna Hay says:

    Turk, first you have to get the mayor to agree to a meeting – when was the last time he had his ‘coffee get-together’?

  16. Bill says:

    Turk182 is on a roll and has made some very valid points. I am with him or her. The questions asked on this blog are never, and I mean never, going to be answered by OReilly or anyone on the council at any public forum. If there are folks on the inside of city hall have credible information, then they need to come forward. Once the FBI is done in Detroit, they should their full attention to Dearborn and a couple of other communities.

  17. Turk182 says:

    So now “concerned cop” has alerted everyone to a new scandal about to break,i am not surprised by this at all. If people would take the time and had the resources to look into the background of a lot of the cities chiefs,Department heads and Superintendents, they would find most do not live in the city and have insufficient training,very little or no college education and disciplinary actions in their past.Knowing that,is anyone really surprised the city has so many law suites from employees and so many investigations?
    But again i ask why aren’t there any articles in the papers about these things,how many residents in this town actually know that most of the people making decisions for their city do not even live here?
    I guess the papers think its more important to tell us about the next art fair or farm market date lol
    If these lame papers will not challenge the administration on these issues and make them accountable,then maybe when election time draws near people will have to pass out their own fliers to houses with all of the facts to inform the voters.Any other suggestions?

  18. MyTwoSenseToo says:

    We have never had a newspaper go up against any administration in the City of Dearborn and we probably never will. It is what it is.

    But I would give up my Dearborn Press and Guide subscription in a heartbeat if we had a paper that would print the real stories!

    My suggestion: Convince a group of Dearborn Business people to pool together and start a new paper for this city and hire one or two investigative reporters.

    I really have not been impressed with the Dearborn Police Chief. Especially after watching him speak during his press conference on television. I didn’t think he presented himself very well. And I can’t understand why the Mayor or City Council have not made an issue about his residency.

  19. concerned cop says:

    i wonder how the citizens of dearborn would feel about paying dearborn police officers overtime pay to supervise police explorers and reserve officers at this years detroit auto show. what do dearborn police officers have any business being in detroit non the less paying overtime, when the chief says we are in dire need that we cant pay overtime for our own city functions, let alone the liability issues. then there is the brainstorm of the chief to shovel snow for elderly residents, good idea, but how bout taking uniform officers off their shifts to do this. i thought it was our job to protect the citizens of dearborn. by taking these officers off their assigned duties, short changes the citizens of their protection, not to mention putting the officers working in jeopardy. come on citizens wake up this chief is ruining your city s police department.

  20. Donna Hay says:

    If you think that citizens are fed-up with this administration you should hear the kids that attend Whitmore Bolles – the mayor was there today speaking and told the kids that Whitmore Bolles pool would be closed this summer along with other pools. Not a happy bunch of kids at home tonight.

  21. Feed Up says:

    Well concerned cop you have your own Union President meeting with the City Council President and telling him it is just a small group of officers that are disgruntled, so according to your elected union president you must be in that small group of officers, maybe there needs to be some house cleaning amongst your own union. The Chief is so concerned about overtime he is wants to implement the worst leave schedule that has ever been thought off, of course it is the leave schedule used in Detroit so just one more thing to bring the department more in line with that well run department in Detroit. If the overtime cost is harming the Police Department so much how about having the American Arab Chamber of Commerce pay for the overtime incurred at American Arab Festival or is that not political correct. It seems to be ok for the department to charge the school system for the cost of having police at school related events to keep the children of the city safe even though the school system is losing money from the state but let the department squeeze a few thousand dollars out of them. In time there will not be any overtime cost because the Police department will have Detroit Reserves working all the events in the city just as they did with the Arab Festival. Maybe if the Department was brought up to the staffing level it should be at there would not be such a concern about overtime but that is just something the citizens voted for, who cares what they think.