Dexter Considers Property Tax Increase to Repay Public Safety Debt

Dexter residents will have a chance next month to weigh in on the city’s proposed budget and property tax rates for the 2026-27 fiscal year.

The Dexter City Council is scheduled to hold a public hearing on Monday, June 8, at 7 p.m. at Dexter City Hall, 3515 Broad St. The hearing will focus on the city’s proposed millage rates, the property tax rates used to fund city services, and the proposed budget for the fiscal year running from July 1, 2026, through June 30, 2027.

According to a memo from City Manager Justin Breyer and Treasurer/Finance Director Orna Angus, the largest proposed change is an increase in the Public Safety Facilities Debt Repayment millage, which helps pay off bonds used to finance the city’s public safety facilities project.

What are the proposed millage rates?

The city is proposing the following tax rates:

Category	Current FY 2025-26	Proposed FY 2026-27	Allowable
General Operating	11.4657 mills	11.4657 mills	11.7760 mills
Streets	4.2500 mills	4.2500 mills	4.7103 mills
Public Safety Debt Repayment	1.2770 mills	1.5100 mills	2.0000 mills
Total	16.9927 mills	17.2257 mills	18.4863 mills

A “mill” represents $1 in taxes for every $1,000 of a property’s taxable value, not market value.

What does that mean for the average homeowner?

Zillow currently estimates the average home value in Dexter at around $500,000. In Michigan, homes are generally taxed on about half of their market value, known as the taxable value.

For a $500,000 home, the taxable value would roughly be about $250,000.

Using that estimate:

• Under the current total millage rate of 16.9927 mills, city taxes would be about:

$4,248 per year

• Under the proposed total millage rate of 17.2257 mills, city taxes would be about:

$4,306 per year

That is an increase of approximately:

$58 annually, or about $4.80 per month

The increase tied specifically to the Public Safety Debt Repayment millage would amount to roughly:

$58 more annually on a $500,000 home

Why is the public safety millage increasing?

City officials say the increase is primarily tied to repayment of the Public Safety Facilities General Obligation bond.

Last year, Dexter received funding through Michigan’s Local Community Stabilization Authority (LCSA), which reimburses municipalities for revenue losses caused by the state’s personal property tax reforms. Because Dexter received more LCSA funding than expected, the city was able to temporarily lower the debt repayment millage for the current fiscal year.

The city now says those excess funds have been used, and the proposed rate for 2026-27 is intended to ensure sufficient bond repayment funding moving forward.

However, officials emphasized that the proposed 1.5100-mill public safety rate is not necessarily final.

According to the memo, the city expects to know by the June 8 public hearing whether it will receive another LCSA payment. If additional LCSA funding comes through, the City Council could lower the debt repayment millage before adopting the final budget, potentially to somewhere closer to 1.30 mills, depending on the amount received.

Public can comment June 8

Residents may attend the June 8 hearing in person or remotely through Zoom.

The proposed budget is available for public review through Dexter City Hall and online at dextermi.gov.

The City Council is expected to continue discussing the proposed millage rates and budget throughout May and June before final adoption.