Faced with decreasing property tax revenues and increasing city expenditures, Dearborn city leaders will be taking a critical look at separating the “need to have” from the “nice to have” services as a way to make up for lost revenues, Dearborn Mayor John B. O’Reilly, Jr., said Wednesday in his State of the City address.

Mayor John B. O'Reilly, Jr.

“We’ve already lost about 5 percent in property tax revenue in the past two years,” O’Reilly said. “We expect a 10 percent drop this year. And we’re anticipating another 10-15 percent in the next two years. In total, that’s a decline of at least 25 percent . . . If we take no action, make no hard decisions now, we’ll have a $20 million gap between our revenues and expenditures in just the coming year alone.”

Exactly where the cuts will come from is being studied but O’Reilly told the audience at the Ford Community & Performing Arts Center Wednesday evening that “everything but the essentials is on the table – and even those essential services may have to be delivered differently.”

“Because of that, I’m not going to shy away from considering any idea regarding our programs and services, even the controversial proposals.”

To make those tough decisions, both the mayor and City Council will have to work together and accept some of the recommendations from the mayor’s recently created Task Force. The group of 28 people from across Dearborn will report their recommendations in May, helping define services and transforming them, too, O’Reilly said.

Last year, a recommendation to close some underutilized city pools as a way to save the city money was met with very vocal responses against the idea by residents. That was enough to convince city leaders — all running for reelection last year – to do nothing.

“We didn’t pursue the less costly alternative of the splash parks; and modest savings weren’t realized, meaning we’re facing even tougher financial decisions now,” O’Reilly said. “This is a process that we can no longer afford to repeat.”

O’Reilly said the city is going to need to look at whether some city services might be able to be converted into a regional operation where many communities could pool resources. Other ideas include trying to determine whether city facilities such as the Dearborn Hills Golf Course, Adray Ice Arena or even the Ford Community & Performing Arts Center could operate more efficiently with a business model, meaning each facility would cover all of their costs, including ongoing capital investments.

“We need to look at everything we do and ask: are we delivering this in the best possible way within our available resources? As tough as these questions may be, and as troubling the consequences they bring, they are relatively small ones.

“The real questions are: What do we want our community to be like in the future? What kind of Dearborn do we want for our children and our children’s children to have? I can’t answer those questions alone. That’s for us to decide together.”

Dearborn no doubt has some tough choices ahead. But as O’Reilly rightly pointed out in his speech, our city went through a similar rough time in 1983 when his late father was mayor. Dearborn emerged stronger because under his father’s direction, O’Reilly said, the city rejected the “business as usual” model; there was “political will” to make the unpopular decisions for the good of the community and because “citizens and businesses were engaged.”

Let’s hope the same is true this second time around.