By ZEINAB NAJM
DEARBORN — The city will generate the $60 million needed for additional sewer system improvements through a tax bond after residents approved the proposal Aug. 7.
A total of 11,068 voters chose the option to raise taxes to pay the remaining $60 million due on the Combined Sewer Overflow project, while 4,286 voted against the plan, which would have raised water rates to pay the $60 million had the proposal failed.
Dearborn is required to complete the project in order to comply with the CSO permit issued by the Michigan Department of Environmental Quality which calls for the city to reduce pollution in the Rouge River. The CSO projects are scheduled for a 2025 completion.
According to the city’s website, the property tax increase cost is estimated to be $48 a year over the life of the bonds for the owner of a home with the average taxable value of all Dearborn homes which is $55,000.
“The rate of the property tax designated for the CSO will fluctuate each year, because project costs will fluctuate each year, depending on the stage of the construction,” the website read.
The tax is estimated to start at .22 mills in the beginning, with an average annual rate of .87 mills, and cannot to rise above 1.12 mills, according to the city’s website. One mill represents $1 for every $1,000 of a property’s taxable value.
The property tax will appear on the winter 2018 tax bills and will remain on the tax bills until 2045 to generate the $60 million needed.
For more information on the CSO project go to www.cityofdearborn.org.
(Zeinab Najm can be reached at [email protected])