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Tue December 28, 2010
Detroit submits audit on time
Detroit Mayor Dave Bing has managed to fulfill one major promise: the city has submitted its comprehensive annual financial report to the state on time.
Detroit had submitted its audit late for the past five years. That caused the state to withhold millions in much-needed revenue-sharing funds.
The report had some mixed news about the city’s finances. Its general fund deficit dropped substantially to about $90 million. But that’s largely because the city sold off $250 million in fiscal stabilization bonds.
The audit warns the city faces long-term challenges with its pension obligations, retiree benefits, and debt payments.
The report puts the city’s total deficit at about $1.6 billion. But that number is largely the result of new accounting rules that requires governments to report more expected future costs.