The state has fully relinquished oversight of Benton Harbor, six years after the city was placed under emergency management to address a budget deficit.
Friday's decision followed a recommendation from a state-appointed receivership transition advisory board.
The southwestern Michigan city will manage operations and finances without oversight. City council ordinances no longer need approval of the board that was appointed in 2014 once emergency management ended.
Both Gov. Rick Snyder and former Gov. Jennifer Granholm appointed emergency managers in Benton Harbor.
Snyder, who has been criticized for emergency managers' work in Flint and Detroit's school district, says Benton Harbor's emergency manager "worked hand-in-hand" with the local community to stabilize finances. He says local leaders "have continued on the path of sound fiscal management" and are "well-positioned for success going forward."