Tagged: Detroit Financial Advisory Board

Consultants are working on all kinds of plans to re-shape Detroit city departments, and two such plans were previewed at a Detroit Financial Advisory Board meeting Monday.

One is to drastically downsize the Detroit City Council, and make its members part-time, with just one staff member each

Council member Saunteel Jenkins says that would completely change the Council’s role in city government.

Detroit can just barely avoid running out of cash this fiscal year--if it implements some key measures.

That’s what the city’s finance officials told its financial advisory board on Monday.

The premise to avoid insolvency involves some immediate cuts, some deferred payments—and a few big “ifs.”

Some of those measures are so-called “structural changes,” like mandatory furlough days, layoffs, and possible pension and health care changes. Others defer payments or take one-time opportunities to grab
cash.

A preliminary state review of Detroit’s finances says “financial reporting problems” make it difficult to know where things actually stand.

The report was issued Friday, just days after state treasurer Andy Dillon initiated the process that could lead to an emergency financial manager.

It found Detroit has “significant cash flow problems.” But projections vary from month to month, “making it difficult to make informed decisions.”

Detroit’s march toward a state-appointed emergency financial manager appeared to speed up Monday, as State Treasurer Andy Dillon announced his intention to start the review process that could end up there.

The city’s financial advisory board voted to support Dillon's move to start the process. It can last up to 30 days under Public Act 72.

Detroit’s Financial Advisory Board is charged with ensuring the city’s financial viability--and has sweeping powers to do that under the city’s consent agreement with Lansing.

But at a board meeting Monday, some Detroit police officers pleaded with the board to consider the human cost of their actions.

Like most city employees, most police officers are about to get hit with a 10% pay cut.

They also face other cutbacks and major changes—including working twelve-hour shifts—as the department, and the city, try to re-align in the face of major budget cuts.

Detroit mayor Dave Bing opened the first meeting of the city's newly formed financial advisory board by telling its members their task is to help return Detroit to greatness.

The problem is, the city has a massive budget deficit to wrestle with while it tries to keep the street lights on and the busses running.

Sheila Cockrel served on the city council for 16 years before retiring in 2009. She says there needs to be a major shift in the culture for the intervention to work.

"Them and us doesn't work," Cockrel said. "This is not someone taking something away. This has got to be everybody coming to the table for the common good and for the greater good. 'Cause what's good for Detroit is good for Michigan."

The nine-member board is mandated by the city's consent agreement with the state.