Detroit Rising: Life after bankruptcy One year after a federal judge approves Detroit's bankruptcy exit plan, progress has been made while looming challenges remain, especially city pensions The City of Detroit has more than enough cash to pay its daily bills. Thousands of busted streetlights have been replaced. That's the good news. Among the greatest concerns: a multibillion-dollar pension bill that starts coming due in less than a decade. The city is on the hook to make a balloon pension payment estimated at more than $100 million in 2024 alone. So far, the early returns for the investments since the bankruptcy are falling short. On Nov. 7, 2014, federal bankruptcy Judge Steven Rhodes gave a green light for Detroit's government to cut more than $7 billion in unsecured liabilities and pour $1.4 billion over 10 years into basic services to rehabilitate the city reeling from a decades-long population exodus, disinvestment and cash drain. It was officially known as a plan of adjustment. Detroit's bond rating up, but at a cost
Detroit plans to sell off closed fire stations By Bryan Dyne 5 June 2013 Eight vacant buildings once operated by the Detroit Fire Department─seven fire stations and the former firehouse headquarters─are being sold by the city of Detroit to private investors and developers to be transformed into restaurants, wineries or micro-distilleries in an effort to raise money for the city. The minimum bid for the fire stations are $637,000 while the former headquarters is being sold for $1.25 million. It is not yet clear who has bought the fire stations or for what price, though it is known that Southfield, Michigan developer Walter Cohen has plans to purchase the former headquarters and turn it into a boutique hotel. The stations to be sold include Ladder Nos. 8, 12, 16 and 38 and Engine Nos. 10, 18 and 49. Putting firehouses up for sale is one of the initial steps taken to restructure Detroit in the name of generating profits for Detroit's bondholders. The Vinewood fire station which once housed Engine No. 10. “It's all part of the cuts.
Detroit's biggest crime problem: Lack of police, poll finds Detroit — Detroiters overwhelmingly feel the biggest contributor to crime is a lack of police on the streets — and they'd gladly pay more taxes to hire more officers, according to a poll commissioned by The Detroit News and funded by the Thompson Foundation. The finding comes weeks after the City Council refused to put a measure on the ballot to do so. The poll found that 49 percent of residents don't feel safe in their neighborhoods. The results cross most income and gender lines, but generally those who make more money feel safer in their neighborhoods. The survey also found that residents have mixed views of the Police Department, but generally liked Police Chief Ralph Godbee. "I'd be willing to pay more taxes if it meant the police could come around more," said Levona Coles, 74, who lives on Detroit's west side. A strong majority — 60 percent — said they would pay more in taxes for more police and firefighters. Detroit Board of Police Commissioners Chairman the Rev.
Detroit is going dark - Jul. 19, 2013 And if you're walking around the city, it might make sense to bring a flashlight -- about 40% of the 88,000 street lights don't work. Those are two of the problems highlighted by Michigan Gov. Rick Snyder as he approved a bankruptcy filing for the state's biggest city. The problems have fed on themselves, resulting in 78.000 buildings either abandoned or ruined. "Does anybody think it's OK to have 40-year-old trees growing through the roofs of dilapidated houses?" Orr said the city had filed for bankruptcy because it would take more than 50 years to pay off the city's $11.5 billion in unsecured debt while not conducting even the most basic maintenance, such as filling potholes and plowing snow. Related: Detroit bankruptcy filing came with only 5 minutes to spare Here are some of the other problems outlined in the bankruptcy filing: -- A 40% reduction in police staffing over the last decade, "causing constant strain on the organization" that receives 700,000 calls a year.
As Detroit breaks down, scourge of arson burns out of control Detroit firefighters protesting bankruptcy discuss expanding fight against pension and budget cuts By our reporters 25 July 2013 Scores of firefighters demonstrated in front of the federal courthouse in downtown Detroit yesterday to voice their anger over last week’s bankruptcy filing by the city’s emergency manager, which threatens to cut up to 90 percent from the pensions owed to city workers and retirees. With the trade unions offering no way forward, fire fighters have formed an ad hoc organization called the Public Safety Workers Action Group (PSWAG), to reach out more broadly to working people around the city and explain the connection between budget cutting and the undermining of safety for the city’s residents. PSWAG members have been holding a number of small demonstrations at fire stations across Detroit in recent days. The American Federation of State, County and Municipal Employees (AFSCME) and other public sector unions, including the Detroit Fire Fighters Association, have opposed any genuine mobilization of city workers against the emergency manager and the bankruptcy.
2013 - 2014 Executive Budget Summary | Detroit Budget Archives Information | Find Detroit History & Archives | How Do I | City of Detroit OVERVIEW:Describes the City's organization, financial processes and policies (147 kb) SUMMARY - ALL FUNDS:Sorts the activities proposed for 2013-2014 according to overall functions of City government, organizational units of administration, funds, budgetary objects, and major types of revenue. It explains capital, operating and staffing proposals in the context of historical trends. (938 kb) SUMMARY - GENERAL FUNDS:Sorts the activities proposed for 2013-2014 according to overall functions of City government, organizational units of administration, funds, budgetary objects, and major types of revenue. Non-Departmental items, including agencies: Board of Ethics, Cable Commission, Detroit Building Authority, Greater Detroit Resource Recovery Authority, and Detroit Human Resource Management - HR Payroll Project (144 kb)Sinking Interest and Redemption (Debt Service) (25 kb) Community Profile and Glossary (233 kb)
Suspicious fires plague Detroit's popular Heidelberg Project The latest in a string of suspicious fires early Thursday destroyed a home in Detroit's internationally known Heidelberg Project, an installation that transformed decaying homes into works of art. The blaze engulfed "The Penny House," a small home adorned with images of pennies, around 3 a.m., fire officials said. The two-story structure was leveled by the time firefighters arrived. The nonprofit behind that artwork set out to bring new life to Detroit's crime-ridden East Side and draw attention to the community's plight. In the last two months, Heidelberg Project properties were hit with five fires, which destroyed three of the vacant buildings -- "Obstruction of Justice," "House of Soul" and "The Penny House," according to the project. Detroit Senior Fire Chief Larry Gassel voiced his suspicions about the fires to CNN, saying of the buildings, "They're all vacant; it's not like it's wiring. Detroit has long battled waves of arson. No arrests have been made in connection with the fires.
Fewest cops are patrolling Detroit streets since 1920s Detroit — There are fewer police officers patrolling the city than at any time since the 1920s, a manpower shortage that sometimes leaves precincts with only one squad car, posing what some say is a danger to cops and residents. Detroit has lost nearly half its patrol officers since 2000; ranks have shrunk by 37 percent in the past three years, as officers retired or bolted for other police departments amid the city's bankruptcy and cuts to pay and benefits. Left behind are 1,590 officers — the lowest since Detroit beefed up its police force to battle Prohibition bootleggers. "This is a crisis, and the dam is going to break," said Mark Diaz, president of the Detroit Police Officers Association. "It's a Catch-22: I know the city is broke, but we're not going to be able to build up a tax base of residents and businesses until we can provide a safe environment for them." Police Chief James Craig acknowledges he doesn't have as many officers as he'd like. Staffing challenges Deployment shuffle
Pay cuts coming to Detroit police, fire officers - Aug. 2, 2013 The 10% cuts apply to 1,200 police lieutenants and sergeants and 400 comparable officers in the fire department. The cuts, announced this week, will take effect in September. Bill Nowling, spokesman for Kevyn Orr, the emergency manager overseeing the city's reorganization effort, said other city employees took the same 10% cut in 2012. "We had to make this cut due to disparity between management and rank and file," said Nowling. "These pay cuts and the savings have already been baked into the budget. Related: New hockey arena still a go in Detroit Nowling said if the city is able to get the debt relief it is seeking in bankruptcy, it is possible that some of the pay cuts can be restored at the end of the year. "It's not a promise, but it's one of the things we're looking at doing," he said. Much of the debt reduction sought would come from cuts in pension and retiree health care benefits. Related: Retired Detroit firefighter - 'My pension is what I was promised.'