Tagged: inkster

State Treasurer Andy Dillon announced today the state's intention to launch a preliminary review of Detroit's finances. The review will commence next Tuesday, according to Dillon's office. This post is being updated with information as it comes in.

Update 5:06 p.m.

MPRN's Laura Weber reports that State Treasurer Andy Dillon said he does not see bankruptcy as an option for Detroit.

“I don’t see that in the near-term, no, because if you look at the revenues coming into the general fund, it’s a fixable issue for the city,” said Dillon. “Now the longer-term debt may present an issue that we’ll have to figure out how to tackle down the road.”

Dillon said this is the first step in a review of Detroit’s finances and does not guarantee the city will be taken over by the state, but he said because Detroit is running out of money quickly, a review is time sensitive.

3:15 pm

Mayor Dave Bing released this statement on the state's preliminary financial review a few moments ago:

"While unfortunate, this decision by Governor Snyder is not unexpected.  We believe we have the right plan to address the City's fiscal crisis and we will continue to work with City Council, our unions and other stakeholders to achieve the necessary cuts and concessions, including pension, healthcare and work rule reform. I'm confident with yesterday's demonstration of solidarity and shared commitment that we will continue to make progress.  We are committed to full cooperation with the Governor's fiscal team, who has had full access to the City's financial information and plan for months."

Update 2:49 p.m.

You can see a list of reasons why Michigan State Treasurer Andy Dillon feels a preliminary review of Detroit's finances is in order. Dillon released a "Detroit Informational Memorandum."

In it, Dillion cites that Detroit has run deficits exceeding $100 million dating back to 2005.

Annual debt service requirements in Detroit for 2010 exceeded $539 million, according to the memo.

2:15 p.m.

A day after Detroit Mayor Bing stood with other city leaders to try to head off an impending state review of the city's finances, the Governor's office announces the review:

From MPRN's Rick Pluta:

State Treasurer Andy Dillon says the state will send in teams to review the finances of Detroit and Inkster. It is the first step in the process to name emergency managers to run the cities.  But Dillon says his hope is that early intervention will help avoid that. Detroit city leaders including Mayor Dave Bing have spoken out against a state review.

In a letter to Mayor Bing and City Council President Charles Pugh, State Treasurer Andy Dillon cited the mayor and city council's ongoing inability to work cooperatively to financially manage the city; Detroit's recurring operating deficits; and the likelihood that the city will run out of cash in the spring.

The state took a big step today towards making Inkster the next Michigan city to fall under the oversight of an emergency manager.   

Governor Snyder has appointed a seven-member review team to delve deep into Inkster’s city finances. A preliminary review has already found the city is in ‘probable financial stress’.      

The city has struggled to deal with a multi-million dollar deficit. This week, the city laid off 20 percent of its police officers and the police chief announced he’s leaving too.  

The city of Inkster is laying off twelve police officers amid a budget crisis. WXYZ-TV confirmed the layoffs with Inkster Police Chief Gregory Gaskin:

From WXYZ-TV:

Effective today, Gaskin confirms twelve police officers will be laid-off. Two other officers have resigned and four civilians were laid-off last week.

Chief Gaskin says some lieutenants and sergeants have also been demoted as part of their reorganization plan to make sure there is still an adequate number of officers to respond to calls.

On November 9, the state Treasury Department announced that the city was in "probable financial stress." Michigan Radio's Steve Carmody reported a state-appointed emergency manager could be next:

Treasury spokesman Terry Stanton says the city is having trouble solving a multi-million dollar deficit.  "And the review also found city official have proposed unrealistic budgets and failed to make budget revisions in a timely manner," Stanton says.

Another Michigan city is moving toward a state takeover.   

The state Treasury Department announced today  that a preliminary review of Inkster’s books shows the city is in "probable financial stress".   

Treasury spokesman Terry Stanton says the city is having trouble solving a multi-million dollar deficit. 

"And the review also found city official have proposed unrealistic budgets and failed to make budget revisions in a timely manner," Stanton says. 

The city of Inkster is the subject of a financial review by the state that could ultimately lead to the appointment of an emergency manager.

State Treasury spokesman Terry Stanton says the review was ordered after city officials informed the department about its financial difficulties. He says that’s the goal of the state’s revamped emergency manager law: to get information sooner, and work with municipalities to fix their problems:

“And therefore perhaps have an opportunity to work collaboratively with a local unit to address any issues that are there.”

The preliminary review will last up to 30 days. Michigan’s new emergency manager law has spurred much controversy, a lawsuit, and an effort to repeal it at the ballot box. Critics of the law say it violates home rule.