DEARBORN — Mayor Jack O’Reilly proposed a reduced 2014 fiscal year budget for Dearborn at the City’s April 24 council meeting. The $4.9 million reduction from the City’s 2013 budget is a result of efforts to run all City departments on a leaner budget and combat the deficits faced in previous years. 

The City approves all annual proposed budgets two years in advance. The fiscal year for the 2013 budget, which was approved last spring, will begin on July 1st.

In keeping with this effort, workshops and council meetings have been scheduled to focus on the 2014 budget, which both the City Council and the Mayor’s Office must agree on. The City Council’s aim is to reach a final budget approval by May 28.

The proposed general fund budget calls for roughly $98.2 million in revenue and $99.7 million in expenditures, down from the current 2012 budget of $99.9 million in revenues and nearly $104.6 million in expenditures.

Mayor O’Reilly and Director of Finance James O’Connor are hoping to draw a yet undetermined amount of money out of the City’s $19.8 million emergency savings account. $6.2 million of those savings have already been allocated to the current fiscal year to compensate for the previous deficit, while an additional $1.4 million is expected to be used for the 2013 fiscal year. 

Some notable changes that have been proposed for the 2014 fiscal year budget include the City tax rate, which has been reduced to 25.9 mills, almost a 1 mill drop off from the current fiscal year. For example, a home with a taxable value of $100,000 will have an expected $2,590 tax rate, to be paid by the homeowner. Taxable values are expected to continue to decline, due in part to changes in Michigan’s Personal Property Tax Law.

The reduction of the 2014 fiscal year budget is also expected to translate into some layoffs for City employees. A total of 18 full-time positions from the Police Department, as well as three positions from the Assessor’s Office are expected to be eliminated. Water and sewer rates will increase 5.8 percent on the new proposed budget as well.

Surprisingly, not affected by the leaner budget are Dearborn’s swimming pools.  In previous years, due to the City deficit, several outdoor neighborhood pools have had to be closed, including the pools at Hemlock Park and Whitmore Bolles. Six pools remain in operation at Crowley, Lapeer, Summer-Stevens, Ten Eyck, Ford Woods and Dunworth. Despite talk that the City is looking to eliminate all pools, with the exception of Ford Woods and Dunworth, plans to do so were not reflected in the 2014 budget.

Still awaiting discussion and analysis is the Dearborn Fire Department budget, which is expected to be merged with Melvindale’s fire department. Negotiations with the two cities have yet to be finalized. The next City Council meeting will be held on May 14 at 7:30 p.m. in the City Council Chambers at City Hall and is open to the public.