Detroit creditors proposal

The Water and Sewer system currently serves 3. In an unprecedented step, the proposal classifies General Obligations carrying a full faith and credit pledge, and no other dedicated payment stream, as Unsecured.

These bonds are treated under the proposal at a reduced value, subject to negotiation. However, most GOs are insured as well and bondholders are expected to receive full payment. The so-called voluntary employee beneficiary association would allow Detroit to wash its hands of all health care liability in 20 years. Retirees would get monthly stipends to offset their private plans and would be moved into Medicare if old enough , or into plans bought through the Affordable Care Act.

Mike held a similar role at the Detroit News, and was also part of a team at The Blade of Toledo that in won national honors for stories detailing the "Coingate" scandal, including a finalist spot for a Pulitzer Prize. Search Query Show Search. Show Search Search Query. Play Live Radio. Next Up:. Available On Air Stations. All Streams. Detroit Journalism Cooperative. The Detroit Journalism Cooperative is an integrated community media network providing insight on the issues facing Detroit.

Administrative Consent Order. The ACO instituted a compliance program with regard to areas of persistent dysfunction e. Order Dismissing Case. Some of these cases could affect the ability of the City to successfully restructure its affairs. Litigation Challenging Consent Agreement. The Court overturned these provisions on the grounds that they improperly granted powers to Mayor Bing and other officials that are reserved exclusively to emergency managers.

The recovery in the last 3 years was due to increased taxable income as well as the recent increase in the corporate tax rate. Wagering tax receipts are projected to decrease through FY and beyond due to expected loss of gaming revenue to casinos opening in nearby Toledo, Ohio. Therefore, the contributions for , , and are effectively understated.

If not for the deferrals of payments, the City would have already run out of cash. Current accounts payable are approximately aged 60 to 75 days. Headcount Reductions. The CETs also implement a number of changes to work rules governing those unions with contracts that expired on or before June 30, Revenue Generating Initiatives. The City has implemented, and is implementing, initiatives designed to i improve collection of past due taxes and ii enhance collection efforts on a prospective basis.

Significantly Reduced Operating Expenses. Demolition Initiative. Program launched in April with the goal of demolishing 10, vacant structures in 3 years. Each report to the Mayor. Orr began work as EM. Orr and the State entered into a second contract. Orr could not have been appointed under PA 72, because that law could not have been in effect and ii asks the court to reverse its previous opinion that voter rejection of PA 4 revived PA Snyder, pending in the U.

District Court for the Eastern District of Michigan, the plaintiffs seek, among other things, i declaratory relief that PA violates, among other things, the U. Constitution and the Voting Rights Act; and ii injunctive relief, among other things, preventing the Defendants and any EMs from exercising rights under PA The plaintiffs assert that the Michigan Legislature violated the pre-clearance requirement of section 5 of the Voting Rights Act in passing PA The plaintiffs seek injunctive relief against any actions taken pursuant to PA , including all actions initiated by EMs.

Plaintiffs have challenged such modifications on federal and state law grounds, including constitutional challenges based on Contracts Clause and Due Process arguments. The EM had shifted certain health care costs from the municipality to retirees. An appeal is pending before the Sixth Circuit Court of Appeals. The defendants have moved for leave to appeal in the Michigan Court of Appeals. Orr acts for and in the place of the Detroit mayor and city council.

Orr and subject to any conditions he may impose. Orr issued an order authorizing the mayor and city council to continue conducting the day-to-day business of the City, subject to limitations imposed by PA and Mr.

A detailed summary of the reinvestments to be made in the City — and the associated costs — is attached hereto as Appendix J. This pilot project could be expanded City-wide. Fire and EMS. PLD continues to operate and maintain the system during the transition period.

Requires regulatory approval. The transition is expected to be complete in March Instead, most employees are working under the CETs. As part of its restructuring effort, the City will work cooperatively with organized labor to improve existing relationships and, where possible, reach agreements to implement changes in terms and conditions of employment that mirror the changes included in the CETs.

The City will work within the framework established by the FTA to achieve any labor cost reductions for these workers through collective bargaining. As a result, the City will need to carefully evaluate the utility of any additional reductions. Further, the City will attempt to eliminate undesirable practices and assure that these practices cannot be revived through dispute resolution procedures.

Consolidation of departments and elimination of redundant functions will be implemented where service improvements or cost savings can be achieved. For a number of reasons, higher tax rates could have a negative effect on revenue. The City is pursuing the collection of these taxes. Goal is to send , letters total by the end of FY As of July 26, , approximately 2, businesses were identified as being without a proper license.

The form of transaction described herein is based upon the form of transaction contemplated in the Root Cause Committee report. Any transaction would be contingent upon the City and relevant third parties reaching agreement on many matters, including, but not limited to, governance, amounts to be paid to the City, and the form and terms and conditions of such transaction.

Thus, all of the terms and conditions of the transaction described below may change and it is possible that the current structure will not change. The other three Board members would be appointed as set forth in the February Order.

Potential Asset Transaction. To the extent that additional value may be obtained for the City, MAWSA could accept the sewer or water assets of other governmental entities. Young International Airport is a two-runway general aviation airport located within and operated by the City.

It includes approximately acres. The City will continue to subsidize operations as closing of airport would terminate certain federal subsidies and require the repayment of certain FAA grant monies previously received. Approximately 2 million vehicles pass through the tunnel annually. The lease runs through Mayor Bing supported the proposal, but the offer was rescinded after the Detroit City Council failed to vote on the proposal. The vast majority of this property has limited current commercial value.

Parking Meters. Increases due to improved employment outlook. Income tax policy is under review and income tax rate could be reduced as a part of the final restructuring plan. Decreases through FY due to declining values and collection rate with modest increases beginning FY Primarily consists of business licenses, street use permits and fire marshal and construction inspections charges.

Based on recent trends. FY includes one-time permit and inspection revenues from utility providers. FY includes loss from sale of asset. Primarily consists of traffic, criminal and parking fines. Decreases in FY due to transition of Health and Wellness department and expiration of certain public safety grants. Reflects reimbursements from other departments for expenses incurred by the General Fund. Property tax millage for UTGO debt service.

Revenues and associated expenses offset.