fiscal stabilization bonds

(photo by Steve Carmody/Michigan Radio)

Next year, the city of Flint will charge residents higher fees in exchange for less service.

The budget plan unveiled last night was greeted with anger from city residents and city council members.

The budget plan calls for trimming 20 percent of city government workers from the payroll.   Flint police officers and firefighters are not being spared.   The emergency manager didn't include public safety officers in the budget whose positions are funded with grant money that hasn't been secured yet.

The Flint City Council will hear this afternoon how the city’s emergency manager plans to spend the city’s money next year.

Emergency Manager Michael Brown has been poring over Flint’s finances since he was appointed by Governor Snyder in December to deal with the city’s “financial crisis.”

Brown’s budget plan for next year is expected to reflect the need for further financial belt tightening for a city that has already felt the pinch of past cuts.

Flint’s finance director has said the budget will probably show the city will have to do “less with less.”      That may include layoffs and furlough days for city employees.

Several city unions agreed to contract concessions this month.

The emergency manager’s budget plan may also include selling bonds to address Flint’s long-term debt problem.

(photo by Steve Carmody/Michigan Radio)

Flint’s emergency manager and his staff are working this week to wrap up a budget plan for the city.    The plan will include a request for up to $20 million in bonds to help close the city’s massive budget deficit.

Flint Finance Director Jerry Ambrose hopes the plan will be ready to submit to the state by early next week.   He says the budget plan will address the need to do “less with less”.   Ambrose says layoffs and furlough days are likely.

(photo by Steve Carmody/Michigan Radio)

 A new audit finds the city of Flint is still struggling with millions of dollars of debt.    But the report shows one bright spot for the troubled city.  

It´s hardly a surprise, but a new audit of Flint´s finances confirms the city ended its last fiscal year about 7 million dollars in debt.  The city´s crushing debt was one of the reasons Governor Snyder appointed an emergency manager to fix Flint´s `financial emergency´.  

The city of Flint has scored a partial victory in its efforts to get its city budget deficit under control.   But there is still more work to do. The city of Flint is looking at a projected $17 million budget deficit.  

City leaders had asked the state for permission to sell $20 million in bonds to stabilize Flint’s budget. But the state only approved  $8 million in bonds. The Flint City Council must still approve the $8 million bond issue. 

Flint mayor Dayne Walling says that will help get the city through the current fiscal year. Flint has already laid off dozens of city employees, including police officers. 

But Walling says Flint may need to cut $12 million in city spending next year. The mayor says a proposed change in state revenue sharing could force evcen deeper cuts next year.

“We of course need to see where the state finally comes down with state revenue sharing when they’re through with their budget process.  Of course the legislature will have its say on the governor’s proposal.”

Flint, like other Michigan cities, stands to lose millions of dollars under the governor’s proposed changes to state revenue sharing.

(photo by Steve Carmody/Michigan Radio)

UPDATE 3:30pm


 


The Finance and Claims Committe of the State Administrative Board unanimously passed the city of Flint's resolution requesting a $20 million fiscal stabilization bond.   The resolution now goes to the full board February 15th. 


 


11:55am 2/0711  


 


Flint city officials will be in Lansing Tuesday. The city has applied for state permission to get a $20 million  ‘fiscal stabilization bond.' 


Flint is facing a multi-million dollar budget deficit this year and other long-term debts. Flint mayor Dayne Walling says the city needs the money to help keep the city afloat financially. 



“There is nothing more important for our city right now than the bond.   We’ve been carrying a crushing load of past deficits on our shoulders.  And we’ve come to the point where the pooled cash is not there to make payroll throughout the entire month of March without an infusion of cash.”  


Walling is optimistic state officials will approve their bond request.  



“If this, for some reason, were not approved by the State Administrative Board, then we’ll get right back to the table with Treasury and we’ll talk about what our options are."


   If the city of Flint can’t get the money it needs, the state may eventually takeover Flint’s finances.