Dearborn Heights officials flag $1.7 million shortfall; council seeks itemized fund‑balance report

Council leaders and department directors at a Dearborn Heights study session discussed a request from the administration for roughly $1.7 million in budget amendments to cover overtime, preapproved purchases and other shortfalls, and pressed staff for an itemized accounting of how prior spending drew on the city's fund balance.

"We're in a very, very bad position," the council chair said near the start of the meeting, characterizing the shortfall and urging directors to explain why their departments exceeded budgeted amounts.

The city controller reported that the revenue the council approved for the most recent budget had been projected at $54,515,776 but actual receipts to date were $49,532,763, leaving about a $5 million shortfall versus the adopted projection. The controller said the current request before council amounts to roughly $1.7 million, which combined with the revenue shortfall equates to about $6.7 million of pressure on the fund balance.

Council members and staff identified three primary drivers: higher overtime across public safety and public works, retroactive and negotiated union pay increases and several preapproved purchases or contracts that were not previously shown to come from fund balance.

Police and fire overtime: staff and the chiefs described persistent understaffing that has driven overtime costs. The police department's overtime budget was described in the packet as about $874,000; with the…