Dearborn Heights council questions $62 million revenue estimate in general fund budget
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Summary
Deputy Director Mahdi Beydoun presented a proposed fiscal‑year 2526 general fund revenue of $62,042,253. Council members pushed back, citing prior‑year actuals well below that figure and asking for three‑year actuals and line‑by‑line comparisons before approving the mayor’s budget.
Deputy Director Mahdi Beydoun told the City of Dearborn Heights council the proposed general fund revenue for fiscal year 2526 is $62,042,253, with the largest line item listed as property tax receipts of $36,689,381.
The presentation broke the proposed revenue into categories: property taxes $36,689,381; state‑shared revenue $8,309,847; reimbursements $5,778,900; other revenues $2,779,875; licenses and permits $2,414,250; district court revenue $2,400,000; and an estimated $1,500,000 from sales of city‑owned properties.
Council members repeatedly questioned the realism of the totals, noting that prior years’ actual collections had been well below the proposed figures. The council chair said the city should avoid “overpromis[ing] and under deliver[ing] like we did this last year,” and asked for actual revenue totals for the past three years. Mahdi Beydoun agreed to provide the requested three‑year activity and to e‑mail members the comparisons before the next meeting.
The administration’s recommended budget shows proposed expenditures of $61,808,907 and a projected net surplus of $233,346 if the $62,042,253 revenue total is realized. Several council members pressed for conservative planning, pointing to the most recent fiscal year in which revenue came in materially below the budgeted amount and the city used fund balance to close a shortfall.
The comptroller and administration said revenue estimates were prepared using recent multi‑year averages and input from external accountants (identified in the meeting as Plante Moran) and department directors. Council members requested that staff present the underlying three‑year revenue comparisons, and to schedule a follow‑up meeting for line‑by‑line review, particularly for property tax, court receipts and licenses and permits.
Next steps: administration will provide three‑year actual revenues and a detailed ledger breakdown; council requested a separate line‑by‑line review session to test assumptions before adoption.
