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Tue July 10, 2012
Allen Park one step closer to emergency manager
The state is moving ahead with the process that could result in an emergency manager for Allen Park.
Allen Park is a Detroit suburb with about 28,000 people. City officials there actually requested a preliminary review under the state's emergency manager law.
In addition to suffering declining property tax revenue, the city was also on the hook for millions due to a botched movie studio deal made by the city's former mayor.
Unsurprisingly, the preliminary state review found “probable fiscal stress” there. So Lt. Gov. Brian Calley took the next step, appointing a review board to take a deeper dive into the city’s finances.
The preliminary review found chronic cash flow problems, and says city officials haven’t come up with an effective deficit-elimination plan.
If the review team confirms those findings as expected, then Allen Park will almost certainly face some type of state intervention. It would be the eighth Michigan city where the state has intervened.
Flint, Pontiac, Benton Harbor, and Ecorse all have emergency managers. Three more cities, including Detroit, are under consent agreements.