Gov. Snyder’s Consent Agreement, Give’s New Board Control Of Detroit’s Finances, Water & Asset’s

DETROIT – Hopefully, Detroit Mayor Dave Bing finally get’s it. While the mayor would create the city’s budget, and the council still would approve the budget, final approval rests in the Financial Advisory Board to oversee the financial management and stability of the city.

The Governor of Michigan is not a friend of the city of Detroit and his agenda is to take over total control of the City. The NEW board would become the ultimate authority in Detroit. At the heart of the debate is city contracts, water rights and downtown Detroit real-estate assets.

Today, Mayor Dave Bing said the consent agreement offered by Gov. Rick Snyder hinders Detroit residents’ electoral rights and fails to represent the kind of partnership needed to turn around the city.

Moving forward. The City Council must approve the consent agreement before it can take effect. Dillon hopes to bring it before the council early next week.

If the consent agreement is approved, the value of the takeover, the state will help Detroit obtain $137 million, Dillon said. About $37 million will come from adjusting city debt; about $100 million will come from new loans.

Bing added: “I never asked for a consent agreement. But we’ve provided the governor with an action plan to resolve our financial shortfall, which we believe is reasonable and achievable with support from Lansing. This proposed agreement will not solve our problems.”

If the agreement is adopted, the city expects to undertake, with board oversight:

• Reducing the city workforce.

• Reducing city vendors.

• Outsourcing some city departments and functions.

• Making improvements in the Detroit Department of Transportation.

• Potential tax amnesties.

• Modifying city taxes.

• Enhancing city revenue collection.

• Making improvements to the city’s real estate management practices.

• Reviewing collective bargaining agreements.

• Analyzing best practices for health care benefits and administration.

• Selling city assets.

• Carrying out the restructuring plan.

Short URL: http://woodlawnpost.com/?p=42120

Posted by WoodlawnPost on Mar 14 2012. Filed under Business, Political. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.