DEARBORN — During the last Dearborn City Council meeting, council members finally approved the budget for the 2013-2014 fiscal year, with a 7-0 vote.  The approval comes after weeks of hearings and revisions. The budget will be adopted on July 1, 2013. 

Unlike previous years however, only minor changes and additions have been made to this year’s budget. Among them is the addition of $363,000 that will be added to the City’s fund balance. The fund balance is now projected to be $13.9 million. A fund balance is considered to be the City’s savings account and can be used in emergencies, or when the council votes to use the money on up-and-coming projects.

Other noticeable highlights in the upcoming budget include a reduction on the City tax rate, which dropped almost a full million and is now at 25.9 mills. Garbage and rubbish tax levies will fall from 1.94 mills to 1.91 mills, while water and sewer rates are going to increase about 5.8 percent. 

Additionally, the Ford Community and Performing Arts Center has been in debt for quite some time now, with the debt almost running past 0.65 mills. The City Council has voted to eliminate that debt completely, thanks in part to the increase in the fund balance. 

But the budget doesn’t reflect some key factors that might change the course of the approved budget within the next year. The City is still in the middle of planning a move into a new Dearborn Administrative Center, located next to the Henry Ford Centennial Library on Michigan Avenue. A contribution of $8.5 million from Severstal was expected to help facilitate that move. However, after residents expressed their concerns in May at a City Council meeting, over how the donated money should be used, the City has had to table the idea.  City officials plan to meet with residents and affiliates of Severstal during study sessions to discuss the possibilities of alternative routes they can take with the donation. 

Another project could also change the course of the budget. The City plans to merge its fire departments with the neighboring city of Melvindale. City officials had still not finalized details of that project when the fiscal year budget was approved last week, however new developments have emerged since.

Mark Guido, the Dearborn administration’s chief of staff, spoke to the City Council at a mayor’s briefing session on Tuesday evening and said that it’s important that the deal is finalized as early as next month, because several operational details need to be resolved as soon as possible. The City Council has, in turn, put the item at the top of their agenda, and hopes to have the deal finalized sometime during the next two City Council meetings.

Some details about the deal include the contract with Melvindale, which is expected to run for five years, with an expectation of extending it for an additional five years, until they reach the 15-year point.  The City of Melvindale will pay Dearborn an annual fee of $1.25 million; $200,000 less than originally proposed. Dearborn will also owe Melvindale money, paying a $1 million annual rental fee for the Melvindale station.

The merged department is expected to be run by Dearborn Fire Chief Joseph Murray, who will remain chief. Melvindale’s current fire chief, Steven Densmore, will continue working, but as a deputy chief.  

All four stations in Dearborn and the Melvindale station will remain open, and the Melvindale station will serve as an additional fifth station. That station will be responsible for responding to the Dearborn area off of the Southfield Freeway, near Rotunda Drive and Outer Drive. All 121 firefighters from Dearborn will remain employed with the Department, and Melvindale’s 14 firefighters will also be considered Dearborn employees.  However, seven of Melvindale’s firefighters with the most seniority will remain in Melvindale’s pension system.

More details of the merger will be discussed at the next Dearborn City Council Meeting on Tuesday, June 11 at 7:30 p.m. in the City Council Chambers at City Hall. Melvindale officials are also expected to attend.