Sewer System Improvements Bond Proposal - City of Dearborn Proposal

State and federal regulations require the City to design and build additional major improvements to its sewer system so that untreated sewage overflows in the Rouge River are drastically reduced. These additional improvements are estimated to cost approximately $60,000,000. In order to pay for these improvements, the City will either increase sewer rates or spread the cost onto the property tax rolls with voter approval. If this proposal passes, the cost will be spread onto the property tax rolls. The annual cost for the owner of a home with the average taxable value of all Dearborn homes is estimated to be approximately $48.00 over the life of the bonds. Shall the City of Dearborn, County of Wayne, Michigan borrow the principal sum of not to exceed Sixty Million Dollars ($60,000,000), and issue one or more series of its general obligation unlimited tax bonds payable in not to exceed thirty (30) years from the date of issue of each series, to be used by the City for acquiring, constructing and installing improvements to the City’s sewer system necessary for complying with federal and state water pollution control regulations, and reducing untreated sewage overflows in the Rouge River? The estimated millage to be levied in 2018 is 0.22 mills ($0.22 per $1,000 of taxable value) and the estimated simple average annual millage rate required to retire the bonds is 0.87 mills ($0.87 per $1,000 of taxable value).