Ferndale facing $4M budget shortfall, leaders hope ballot proposal fills gap

Ferndale City Manager Joe Gacioch
Posted at 6:19 PM, Apr 30, 2024
and last updated 2024-04-30 18:56:28-04

FERNDALE, Mich. (WXYZ) — Community members in Ferndale are responding to a major budget shortfall as city leaders say they are limited by the state capping tax rates.

In the next few weeks, city leaders are expected to approve a November ballot proposal asking for more money. They say it’s to fill a $4 million gap that also impacts public safety.

“I feel like everybody's struggling. I don’t know what it is right now, especially in the service industry,” barbershop owner Terry Guido said. He runs Lefty’s on 9 Mile Road.

Lefty's Barbershop owner Terry Guido
Lefty's Barbershop owner Terry Guido in Ferndale on April 30, 2024.

“I own a house here and I remember when I moved here, I was like dang, that’s a little more than I was expecting,” Guido said.

City leaders are publicly opening up about their own financial problems and they told us an expiring mileage that impacts all parts of government is a serious concern.

“Voters adopted what's called a Headlee override millage for in 2015. It was for 10 years. That 10 years expires next year. We would have to likely reduce our downtown beautification program — you would eliminate special events, 50% of city hall staff," City Manager Joe Gacioch said.

Gacioch added that 35 jobs would be impacted.

Ferndale City Manager Joe Gacioch
Ferndale City Manager Joe Gacioch talks with 7 News Detroit reporter Simon Shaykhet on April 30, 2024.

We looked into the numbers more closely and found 63% of property owners would be asked to pay roughly $300 more a year. Twenty-seven percent would pay $300 to $500 more per year. Less than 10% with property worth more than 150,000 would pay $500 or more extra per year.

On the streets, more families told us they do not want to see cuts to police officers or firefighters. Some also support building a new public safety headquarters and recreational center.

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Ferndale property owner Chris Tupper. (April 30, 2024)

“I’d like to look at the budget and hopefully, police and fire are some of the last things that are considered to get cut,” property owner Chris Tupper said.

Leaders say you can pick up copies of the new financial report at city hall along with finding resources on their website.

“If it actually goes to those things and we do get a rec center, I have a kid here, so if I paid just that little bit more and we get a pool and more public stuff, I think that's good," Guido said.

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