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Topic: Time for the City of Flint to file Chapter 9 Bankruptcy
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patclawson
F L I N T O I D

The financial situation in the City of Flint is so dire that local leaders must immediately consider a Chapter 9 municipal bankruptcy and/or the appointment of an emergency financial manager.

The financial condition of the City is not going to improve even with massive budget cuts. Flint is on a steady downward spiral to financial collapse. What is needed is a complete financial restructuring. That can be achieved only under the supervision of a federal bankruptcy judge or state-appointed emergency financial manager.

Flint's political leadership has demonstrated that it is not up to the task. The current Mayor is incompetent. The City Council is essentially gutless.

As far as I can see, local governments need to provide only a handful of core services: protection of public health and safety, maintainance of streets and highways, water and sewerage services, a public education system, administration of a justice system and collection of taxes to keep all of the foregoing operating.

Everything else - including trash collection, operation of parks, etc. - needs to be outsourced.

And why not follow the path recently taken by the City of Pontiac? They are disbanding the local police force and contracting with the County Sheriff for law enforcement services. Flint and Genesee County need to consolidate as many government services as possible. Why not merge the Flint and Genesee public libraries? Why not merge the 67th and 68th District Courts into a single court? There is no reason not to take these cost-saving steps - except politicians and bureaucrats want to fight to the death to hang onto their own little piece of turf.

The City also needs to turn off the constantly flowing spigot of handouts to special interest groups. Let's shut down the "ward accounts" of the city council members so they stop giving away taxpayer money to various charities as though it were their own. And let's pull back that six-figure payment to the useless deadwood at the Chamber of Commerce, an unproductive organization whose sole purpose seems to be to enrich Tim Herman and his cronies.

Dayne Walling and his hapless band of sidekicks will just sink the city deeper into the hole with their proposed bond offering. What's needed, sooner rather than later, is action by steely-eyed restructuring professionals like receivers and judges who don't have to worry about the political consequences of getting the necessary dirty work done.

Pat Clawson
Libertarian Candidate
Michigan State Senate - 27th District
patrickclawson@comcast.net
Post Sun Oct 17, 2010 8:50 am 
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twotap
F L I N T O I D

Its going to be tough to undue the last 40 years of incompetents running the county and of course Flint but your ideas sure have merit. Hopefully after nov.2 we will have a bunch of steely eyed folks who will also put an end to whats taken place nationwide the last 2 years.

_________________
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Barack Hussein Obama--- multiple times.
Post Sun Oct 17, 2010 9:23 am 
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Steve Myers
Site Admin
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quote:
patclawson schreef:
The financial situation in the City of Flint is so dire that local leaders must immediately consider a Chapter 9 municipal bankruptcy and/or the appointment of an emergency financial manager.

The financial condition of the City is not going to improve even with massive budget cuts. Flint is on a steady downward spiral to financial collapse. What is needed is a complete financial restructuring. That can be achieved only under the supervision of a federal bankruptcy judge or state-appointed emergency financial manager.

Flint's political leadership has demonstrated that it is not up to the task. The current Mayor is incompetent. The City Council is essentially gutless.

As far as I can see, local governments need to provide only a handful of core services: protection of public health and safety, maintainance of streets and highways, water and sewerage services, a public education system, administration of a justice system and collection of taxes to keep all of the foregoing operating.

Everything else - including trash collection, operation of parks, etc. - needs to be outsourced.

And why not follow the path recently taken by the City of Pontiac? They are disbanding the local police force and contracting with the County Sheriff for law enforcement services. Flint and Genesee County need to consolidate as many government services as possible. Why not merge the Flint and Genesee public libraries? Why not merge the 67th and 68th District Courts into a single court? There is no reason not to take these cost-saving steps - except politicians and bureaucrats want to fight to the death to hang onto their own little piece of turf.

The City also needs to turn off the constantly flowing spigot of handouts to special interest groups. Let's shut down the "ward accounts" of the city council members so they stop giving away taxpayer money to various charities as though it were their own. And let's pull back that six-figure payment to the useless deadwood at the Chamber of Commerce, an unproductive organization whose sole purpose seems to be to enrich Tim Herman and his cronies.

Dayne Walling and his hapless band of sidekicks will just sink the city deeper into the hole with their proposed bond offering. What's needed, sooner rather than later, is action by steely-eyed restructuring professionals like receivers and judges who don't have to worry about the political consequences of getting the necessary dirty work done.

Pat Clawson
Libertarian Candidate
Michigan State Senate - 27th District
patrickclawson@comcast.net

_________________
Steve Myers
Post Sun Oct 17, 2010 11:35 am 
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untanglingwebs
El Supremo

The city has a millage for trash collection and the union bid outfor the job. Grant money shold be used for special trash pickups and the administration should schedule leaf pickups more prudently. Far too much overtime is being currently used for leaf collection. Walling's bi weekly pick up cost the city heavily in overtime and injuries. Shrinking the city would help gas usage and lessen the burden of having trucks on routes with few homes and bad roads.

We have a parks millage but the city has too many parks, many of which are very large. There are a number of small playlots. The parks have been so neglected for years as was the tree trimming, that the millage cannot begin to cover the cost of their maintenance. Don't forget the millage was also expected to cover the Community centers and provide youth activities.

Bottom line is Flint's infrastructure is too large for the population. People complain that shrinking Flint is wrong, however some areas have already been abandoned with sometimes ony one or two houses per block. Such small residential concentration in these areas does not begin to cover the cost of servicing these areas. In fact residential taxes alone will not cover the expenses needed to sustain the city. Flint needs businesses and new corporations.

Until Flint deals with the public safety issues and the gangs, there is no reason to rehab homes for sale when the houses are in gang areas and areas of high crime. New Urbanism concepts says you should find a stable neighborhood and build off that stability to grow neighborhoods. I have watched too many rehab projects deteriorate in a short time period. Some homes in Flint, especially in Smith Village, have received federal monies for rehab twice.

Currently DCED gave out significcant amounts of money to organizations that are not eligible. The individuals running these organizations are politically connected.
Post Sun Oct 17, 2010 12:24 pm 
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untanglingwebs
El Supremo

Flint Journal coverage of city of Flint's $5M budget deficit
Published: Tuesday, October 19, 2010, 4:35 PM Updated: Tuesday, October 19, 2010, 4:55 PM
Kristin Longley | Flint Journal

Ryan Garza | The Flint JournalFlint Mayor Dayne Walling talks with the press Tuesday about how the city is facing a projected $5 million deficit this year that will require spending cuts in the short term and some form of a tax increase in the long term to avoid further public safety cuts.
FLINT, Michigan — Flint Mayor Dayne Walling announced the city is facing a projected $5 million deficit this year, and outlined a proposed five-point plan to balance the budget.


Here is The Flint Journal's coverage of the story:


11:36 a.m. — Flint facing projected $5M deficit; Public safety layoffs 'last resort' option


12:30 p.m. — Flint mayor proposes budget plan to erase $5M deficit


1:01 p.m. — Tax increase part of city of Flint's long-term budget solution, officials say


1:55 p.m. — Firefighter's union willing to negotiate to avoid layoffs as city faces $5M budget deficit, official says


2:28 p.m. — President of Flint police patrol officers union says they can't go any lower


3:16 p.m. — Emergency state takeover not the answer to Flint's budget deficit, mayor says


3:41 p.m. — President of Flint Police sergeants union says he is willing to sit down at the table to make concessions
Post Tue Oct 19, 2010 5:16 pm 
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untanglingwebs
El Supremo

Flint facing projected $5M deficit; Public safety layoffs 'last resort' option
Published: Tuesday, October 19, 2010, 11:36 AM Updated: Tuesday, October 19, 2010, 3:21 PM
Kristin Longley | Flint Journal
FLINT, Michigan — The city is facing a projected $5 million deficit this year that will require spending cuts in the short term and some form of a tax increase in the long term to avoid further public safety cuts, city officials said today.

Dozens of police and/or fire personnel could be laid off within the next several months if the city doesn't balance its budget through a combination of employee concessions and other cuts, Flint Mayor Dayne Walling said.

Walling this morning laid out his proposed five-point budget plan, which includes city service cuts, employee compensation cuts, personnel reductions through early retirement, a tax increase and borrowing money to cover past deficits. (UPDATE: See details of proposed plan).

In the short term, Walling is asking the city's six employee unions to agree to concessions of 10 percent or more within the next 30 days. He is also expected to issue an executive order limiting employee overtime, he said.

If no concessions are reached, Walling said more than 50 employees will be laid off indefinitely, with the majority likely in the public safety department. (UPDATE: Firefighter's union president speaks out).

A tentative agreement needs to be reached by Nov. 19 to avoid layoffs, he said.

"Lack of cooperation will have serious consequences for our community," Walling said. "Times are tough but working together we can put the city and community on a solid foundation."

Many in the community are concerned about the city's level of public safety staffing since last year's budget cuts led to the layoffs of 46 police officers and 23 firefighters. The firefighters were later brought back with federal grant funds. (UPDATE: Walling discusses possible public safety tax).

The city's projected $5 million deficit is on top of an estimated $20 million in past deficits.


Walling said balancing the budget this year is a key part of a plan to borrow up to $20 million to cover those past deficits and pay them off over a longer period of time. (UPDATE: Walling says state takeover not the answer).

For more on this developing story, visit www.mlive.com/flint this afternoon.
Post Tue Oct 19, 2010 5:18 pm 
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untanglingwebs
El Supremo

Tax increase part of city of Flint's long-term budget solution, officials say
Published: Tuesday, October 19, 2010, 1:01 PM Updated: Tuesday, October 19, 2010, 1:04 PM
Kristin Longley | Flint Journal
FLINT, Michigan — Flint Mayor Dayne Walling said today that some form of a tax increase will be necessary to maintain city services in the long run.


The discussion came this morning at a news conference to announce Walling's proposed plan for dealing with the city's estimated $5 million deficit.


Walling said he wants to hear from Flint residents about what type of tax increase they'd be willing to accept. Voters must approve a tax increase before the city can put it in place, he said.


Walling said increasing the city income tax to 1.5 percent for residents and .75 percent for non-residents would generate $4 million.


"It's not possible to cut our way out of these financial challenges," Walling said. "The public has to set expectations for their services and reflect those within their own spending, or their own priorities."


Walling also talked about a public safety millage that could cover fire personnel as well as reopening the city jail.


At the same time that the city is likely to ask voters to approve a tax increase, voters will also be asked to consider renewing the current 2-mill tax for community policing. That millage covers 16 police officers, Walling said.


"It will not continue after June 2011 unless it is renewed," Walling said.
Post Tue Oct 19, 2010 5:21 pm 
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untanglingwebs
El Supremo

Emergency state takeover not the answer to Flint's budget deficit, mayor says
Published: Tuesday, October 19, 2010, 3:16 PM Updated: Tuesday, October 19, 2010, 4:01 PM
Kristin Longley | Flint Journal
.
FLINT, Michigan — Flint Mayor Dayne Walling said an emergency state takeover is not the answer to Flint's mounting budget crisis.


Walling announced this morning the city is facing a projected $5 million budget deficit this year on top of the estimated $20 million in past deficits.


The city's debt was $28 million in 2002, when emergency financial manager Ed Kurtz took over after the recall of then-Mayor Woodrow Stanley.


But Walling said his administration is prepared to cut spending and work on a plan to generate revenue without the state stepping in. He announced details of his proposed five-point budget plan this morning.


"The state doesn't have any more tools at its disposal than I do," he said. "We don't need a state manager to come in and make the tough decisions for us."


The proposed budget plan includes city service cuts, employee compensation cuts, personnel reductions through early retirement, a tax increase and borrowing money to cover past deficits.



Walling said he wouldn't want city budget decisions being made by an outsider.


"That's not something I would want to see happen in the city of Flint," he said.


Last edited by untanglingwebs on Wed Oct 20, 2010 6:52 pm; edited 1 time in total
Post Tue Oct 19, 2010 5:24 pm 
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untanglingwebs
El Supremo

Flint mayor proposes budget plan to erase $5M deficit
Published: Tuesday, October 19, 2010, 12:30 PM Updated: Tuesday, October 19, 2010, 1:36 PM
Kristin Longley | Flint Journal
Ryan Garza | The Flint JournalCity of Flint Mayor Dayne Walling talks with the press about how the city is facing a projected $5 million deficit this year that will require spending cuts in the short term and some form of a tax increase in the long term to avoid further public safety cuts while giving the quarterly budget update on Tuesday at Flint City Hall.
FLINT, Michigan — Flint Mayor Dayne Walling this morning announced details of a proposed five-point budget plan to erase a projected $5 million deficit.


If the administration, unions, Flint City Council and voters don't agree on the plan — or some form of it that achieves the necessary savings — Walling said more than 50 employees could be laid off, many of them in public safety. (UPDATE: Walling discusses possible public safety millage).


Here are some of the details of the plan as presented at a press conference this morning:


1. Adjust services for savings
Limiting employee overtime
Restructure golf courses — Walling said the open courses didn't generate enough revenue last year
Reevaluate community center hours
Consider closing the city's Customer Service Center one day per week
Focus on infrastructure projects that are grant funded, rather than those that are paid for with local tax dollars
2. Roll back employee compensation
Increase contribution toward healthcare costs for all employees, including elected, appointed and exempt officials. Walling said he will be discussing this option with Flint City Council members in the coming weeks.
Double-digit "across the board" concessions from all six of the employee unions. Walling said this could come in any form (health care, retirement, wages, etc.), as long as it's at least a 10 percent reduction of the total cost.
3. Resize personnel levels
Cost-neutral early retirement through employee purchase of time
Reduce contract employees and temporary positions
Personnel layoffs (last resort)
4. Generate new revenue
Comprehensive public safety millage
Increase the city income tax
Walling said this is a long-term solution, since the earliest projection of additional revenue from a tax increase is in the summer of 2011
5. Fiscal stabilization bond
The city would borrow up to $20 million to pay off old deficits over 20-25 years out of the public improvement fund.
The payments would be about $1.3 million a year out of the fund, which has annual revenues of about $4 million, Walling said.
Post Tue Oct 19, 2010 5:31 pm 
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untanglingwebs
El Supremo

Firefighter's union willing to negotiate to avoid layoffs as city faces $5M budget deficit, official says
Published: Tuesday, October 19, 2010, 1:55 PM Updated: Tuesday, October 19, 2010, 3:27 PM
Kristin Longley | Flint Journal

Ryan Garza | The Flint JournalRaul Garcia, president of the Flint firefighters union, leaves a press conference at Flint City Hall, where Mayor Dayne Walling announced plans to ask city unions for double-digit concessions in light of the city's projected $5 million deficit.
FLINT, Michigan — The Flint firefighter's union is willing to negotiate a fair solution to help relieve the city's $5 million deficit, a union official said today.


Raul Garcia, president of the Flint firefighter's union, said the group is willing to concede some of its employee costs — but probably won't agree to the double-digit concessions Flint Mayor Dayne Walling is asking from city unions.


The firefighter's union already contributes 5.5 percent — the most of all the unions, he said — toward its retirement. He said concessions should be fair across the board.


"I hope whatever our union and the rest of the unions do is fair," Garcia said. "I don't want to give 15 percent and all the other unions give 8 percent.


"At the same time, I don't want another union brother to give double what I'm giving."


Garcia's comments come after Walling announced this morning his proposed plan for dealing with the city's current projected $5 million deficit and past $20 million deficits. (UPDATE: Walling discusses possible public safety millage).


Walling is asking the city's six unions for concessions that equal at least 10 percent of their total costs. The concessions could be in health care, wages, retirement or any other area, he said.


Walling said he'd like the unions to have a tentative agreement in place by Nov. 19 in order to avoid layoffs. If no concessions are given, more than 50 employees will be laid off, the majority of them in public safety, he said.


Unions that agree to concessions would be shielded as much as possible from potential layoffs, Walling said.


Garcia said he hopes the city and unions are able to resolve the issue so the public's safety isn't compromised.


He said the firefighter's union has been at the table for negotiations, and will continue to do so as long as the city provides the union with the information it needs to make decisions.


"If I contribute 7.5 percent, I want to know what that is in dollars and cents in savings to the city," he said. "We need to know the true value."


Last year's budget cuts led to the layoffs of 46 police officers and 23 firefighters in March. The firefighters were later brought back with a federal grant.


"I don't want to go back to the manpower we had back in March," Garcia said. "It would affect response times."


The firefighter's grant requires the city to maintain the current staffing level. If concessions aren't reached and the city decides to layoff firefighters, the city would have to ask the federal government for a waiver to avoid losing the grant, Walling said.
Post Tue Oct 19, 2010 5:33 pm 
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untanglingwebs
El Supremo

President of Flint police patrol officers union says they can't go any lower
Published: Tuesday, October 19, 2010, 2:28 PM Updated: Tuesday, October 19, 2010, 2:53 PM
David Harris | Flint Journal
FLINT, Michigan — The president of the Flint police patrol officers union said police officers have already made all the concessions they can make.


Flint Mayor Dayne Walling asked on Tuesday for concessions of 10 percent or more within the next 30 days from all six of its unions, including police officers.


"How low can we go?" Speer said. "You can't go lower than the bottom. We are at the bottom."

Walling said on Tuesday the city would see dozens of layoffs in the police and fire departments if its employee unions don't make concessions.


The city is projecting a $5 million deficit, he said. (UPDATE: See details of proposed budget plan).


Speer said the department can't suffer more layoffs. Last year's budget cuts led to the layoffs of 46 police.


"I don't know what he wants," Speer said.


Speer said the next step is arbitration.
Post Tue Oct 19, 2010 5:37 pm 
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untanglingwebs
El Supremo

President of Flint Police sergeants union says he is willing to sit down at the table to make concessions
Published: Tuesday, October 19, 2010, 3:41 PM Updated: Tuesday, October 19, 2010, 4:56 PM
David Harris | Flint Journal
FLINT, Michigan — Rick Hetherington, president of the Flint Police sergeants union, said his union is willing to sit down at the table to make the concessions to address a $5 million deficit.


Flint Mayor Dayne Walling on Tuesday said if the city's six unions didn't make concessions, there would be massive layoffs, mostly in public safety.


Hetherington said his union can not afford any more layoffs.


"Our detectives are taking to the most serious cases, and the rest are put on the back burner," he said. "These crimes deal deal with a lot of quality of life issues. It might not be as a big of deal to us than more serious cases, but to the vicitm of the crime it's a big deal."


Hetherington said the union has offered to make similar concessions to what Walling is asking for. He said the union has offered to make changes in their health care benefits and holiday pay.


"We've been to the table before and we can go back again," he said.
Post Tue Oct 19, 2010 5:39 pm 
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Bossman
F L I N T O I D

The sad part is that the police unions collectively came to the bargaining table with a healthy concession package. The City has a warped definition of "negotiate" which translates as "our way or the highway". If the City would have actually negotiated and settled a contract that would have been beneficial to the City, they would have begun saving considerable money nearly a year ago. Now Walling says that he is going to get concessions no matter what, because he thinks an arbitrator will give him everything he wants. Unfortunately, Arbitration is a lose-lose scenario. The Union will lose some issues, but the City will too. The Arbitration will take over a year to finish and receive the award and it will cost the taxpayers thousands of dollars. This is a really smart business decision for Walling. Don't settle contracts that could save the City a million dollars and push for Arbitration that will cost the city money. Like they used to say on the Applegate Chevrolet commercial....."Sure sounds like Flint to me".
Post Wed Oct 20, 2010 10:31 am 
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twotap
F L I N T O I D

I find it hard to believe that a sweep of buildings like city hall and the Mcree building wouldnt easily point out a bunch of non essential sitting on their asses collecting taxpayer funded paychecks couldnt be done. Those savings could then be diverted to fund the police.

_________________
"If you like your current healthcare you can keep it, Period"!!
Barack Hussein Obama--- multiple times.
Post Wed Oct 20, 2010 11:27 am 
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Professional Skeptic
F L I N T O I D

I agree with most points, but it's not easy (or legal) to make sweeping changes.

Unions: Can the city legally breach a union contract unilaterally? Is Act 312 Arbitration the answer since "the city's ability to pay" is not a factor?

Shrinking the city: How does the government get people to move? Generous home purchase & relocation deals? Eminent domain?

Essential services: Is a purchasing clerk essential? Are "overhead" functions, such as Legal, Accounting, HR, etc. essential? Can you outsource these with assurances of quality and confidentiality at a reasonable price? Why would a private company take over park maintenance?

Granted, I have more questions than answers, but I'm skeptical that hard problems have easy solutions.
Post Wed Oct 20, 2010 2:54 pm 
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