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Topic: Review is done -Emergency Financial Manager is coming
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untanglingwebs
F L I N T O I D

Posted: Nov 08, 2011 5:03 PM EST Updated: Nov 08, 2011 5:52 PM EST

By Tom Plahutnik, Web Editor/Producer - email

FLINT, MI (WNEM) -
TV5 is following breaking news right now where Governor Rick Snyder has agreed with a review team that the city of Flint is in a state of financial emergency.

The emergency financial team just finished their review, presented it to Gov. Rick Snyder, and the governor has decided to do something to get the financial situation under control.

The governor has said the state will take action and that could mean appointing an emergency financial manager.

The governor has said the state will take action and that could mean appointing an emergency financial manager.

Below is the conclusion and recommendation of the review team:

Based upon the foregoing information, meetings and review, the Review Team confirms the findings of the preliminary review, concludes that a local government financial emergency exists within the City of Flint, and that no satisfactory plan exists to resolve the emergency. Therefore, the Review Team recommends the appointment of an emergency manager.

Read the Review Team's full report here.

The timing of this decision is expected to raise some eyebrows.

Voters are still head to the polls for another few hours. Incumbent Mayor Dayne Walling is battling for re-election against challenger Darryl Buchanan.

Walling and Buchanan are Democrats, Governor Snyder is a Republican.

We should also note that the eight-member financial review team is bipartisan.

WNEM TV5 is working the phones, trying to assess just what that means, and will bring you that information when it becomes available.


Last edited by untanglingwebs on Tue Nov 08, 2011 7:15 pm; edited 1 time in total
Post Tue Nov 08, 2011 5:58 pm 
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untanglingwebs
F L I N T O I D

Flint Mayor Dayne Walling says financial emergency decision shows 'serious' challenges

Published: Tuesday, November 08, 2011, 6:27 PM Updated: Tuesday, November 08, 2011, 6:27 PM

By Kristin Longley | Flint Journal
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FLINT, Michigan -- Flint Mayor Dayne Walling said the state's decision that a financial emergency exists in the city "shows how serious our financial challenges are in the City of Flint."

State officials announced this evening that an eight-member review panel appointed by the governor is recommending that an emergency financial manager take over the city of Flint.

Walling could not immediately be reached for comment, but issued a written statement on the matter.

"Significant progress has been made to stabilize the City's finances during a very difficult economy, but without shared sacrifice across the board the City has not been able to implement all of the necessary cost-savings," he said. "When some don't share in the sacrifice, we are all forced to bear the burden."

The review team was appointed Sept. 30 to examine the city's finances after a preliminary review by the state treasurer's office found "probable financial stress."

The panel had up to 60 days to issue its report, which was finished yesterday and publicly released today — the same day voters are going to the polls to choose between Walling and challenger Darryl Buchanan, a former city administrator.

Terry Stanton, a spokesman for the state treasurer's office, said the timing of the report was not deliberate.

"They (the panel) concluded deliberations yesterday and submitted the report after it was finished," he said.

Stanton said the governor concurred with the unanimous opinion by the financial review team.

The city has seven days to request a hearing in front of the governor or his designee, Stanton said.

If a hearing is requested and held, the governor could either confirm or overturn the finding that a financial emergency exists, but the local government has the burden of proof, he said.

"The local unit has to demonstrate (through evidence) that the review team got it wrong," he said.

If the governor still confirms, after a hearing, that a financial emergency exists or if no hearing is held, the city has 10 days to appeal the finding to Ingham County Circuit Court, Stanton said.
Post Tue Nov 08, 2011 7:32 pm 
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untanglingwebs
F L I N T O I D

State review panel recommends emergency financial manager be appointed in Flint

Published: Tuesday, November 08, 2011, 5:43 PM Updated: Tuesday, November 08, 2011, 7:19 PM

By Kristin Longley | Flint Journal

FLINT, Michigan — A state review panel is recommending that an emergency financial manager take over the city of Flint.

The recommendation accompanies the review team's report to Gov. Rick Snyder, which says a "local government financial emergency" exists in the city, and "no satisfactory plan exists to resolve the emergency."


Gov. Rick Snyder.
The review team declined to pursue the option of a "consent agreement" with local elected leaders to resolve the financial problems because "it would not afford an efficacious remedy to the financial emergency," according to the team's 10-page report.

Michigan Department of Treasury Spokesman Terry Stanton said Snyder concurred with the unanimous opinion by the financial review team.

The city has seven days to request a hearing in front of the governor or his designee, Stanton said.

The finding comes on the same day voters are deciding whether incumbent Dayne Walling or challenger Darryl Buchanan will be elected mayor.

Snyder appointed an eight-member review team on Sept. 30 to examine Flint’s books after the treasury department found “probable financial stress” based on several issues, including a structural deficit, recurring cash shortfalls and a failure to follow the state-approved deficit elimination plan.

At the time, Snyder requested the team report back within 30 days, half of the 60 days allowed under a new law.

The panel was recently granted an extension to complete the report.
Post Tue Nov 08, 2011 7:40 pm 
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untanglingwebs
F L I N T O I D

Flint would be only Michigan city to twice undergo emergency state takeover

Published: Tuesday, November 08, 2011, 7:24 PM Updated: Tuesday, November 08, 2011, 7:24 PM

By Kristin Longley | Flint Journal

FLINT, Michigan — The city of Flint would be the only city in Michigan's history to twice undergo a state takeover if the governor moves forward on a recommendation that he appoint an emergency financial manager for Flint.

The city previously had an emergency manager appointed in 2002, soon after the recall of then-Mayor Woodrow Stanley. That state takeover ended two years later, in 2004.

A state review panel is now recommending the city again be appointed an emergency manager after it concluded that a "local government financial emergency" exists in Flint.

Gov. Rick Snyder has concurred with the panel's report, said Terry Stanton, state treasury spokesman.

The city has seven days to request a hearing to present evidence that the finding should be overturned. The city also could appeal to the Ingham County Circuit Court.


The emergency financial manager law was enacted 20 years ago.

Since then, according to the treasury office, there have been seven declarations of a financial emergency in a municipality:

•City of Hamtramck - December 2000
•City of Highland Park - July 2001
•City of Flint - July 2002
•Village of Three Oaks - December 2008
•City of Pontiac - March 2009
•City of Ecorse - October 2009
•City of Benton Harbor - April 2010

Detroit Public Schools also had an emergency manager appointed in 2009.
Post Tue Nov 08, 2011 7:43 pm 
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Adam
F L I N T O I D

Will the City of Flint police department be eliminated?
Post Wed Nov 09, 2011 12:31 pm 
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untanglingwebs
F L I N T O I D

With our crime stats i certainly hope not!
Post Wed Nov 09, 2011 7:06 pm 
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Adam
F L I N T O I D

Flint City council may have the votes to throw in the towel
Post Wed Nov 09, 2011 9:03 pm 
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Adam
F L I N T O I D

FYI Pontiac's police force was eliminated under the state's EFM


Link

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Post Wed Nov 09, 2011 9:06 pm 
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Adam
F L I N T O I D

City of Pontiac's elected clerk eliminated. Will Inex Brown get laid off?

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Post Wed Nov 09, 2011 9:27 pm 
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untanglingwebs
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You read the letter, so you know the level of corruption that presently exists. I am told the Department of Energy Grant has been rescinded and Flint is required to repay money.

The deficit is estimated as greater than $25 million and may be far greater. So what good has democracy been for Flint? The state letter indicated a deficit will exist until at least 2030. Brewer and the other Democrats are critical because Walling is a high profile Dem and they are willing to overlook his corrupt administration.

Incompetant and untrained staff in DCD has required the repayment of over a million dollars and the HOME program has been suspended. The failure to follow HUD rules is resulting in situations that will require more monetary repayments, which must be paid from the general fund.

Over $2 million used from the self insurance fund, over a million from the streets fund (restricted federal and state money) and multi millions from the water and sewer funds to pay for everyday operations. There is no telling how big the real deficit is.

Flint has no assets to sell, unlike Benton harbor and their beautiful lakefront property. Hurley Hospital is deed restricted and must remain a public hospital. Flint has more parks than they can afforsd, so perhaps some of them can go. Some are nothing more than abandoned playlots

According to the report Flint has 122 police remaining. With the designation of the most violent city in the nation for a city with a population over 100,000, the state cannot consider cutting police much more. They kept the State Police helicopters here for 2 days after Halloween.

It is crime and lawlessness that is driving people out of Flint. I see people leave every day.

Flint schools are closing without an EFM as the number of students decline each year.
Post Thu Nov 10, 2011 12:54 am 
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untanglingwebs
F L I N T O I D

Powerful video, but as I remember Pontiac also had a high level of corrruption. The problems of one of their housing projects make a dramatic HUD report, complete with photos.
Post Thu Nov 10, 2011 12:56 am 
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Adam
F L I N T O I D

quote:
untanglingwebs schreef:
Flint has no assets to sell, unlike Benton harbor and their beautiful lakefront property. Hurley Hospital is deed restricted and must remain a public hospital. Flint has more parks than they can afforsd, so perhaps some of them can go. Some are nothing more than abandoned playlots

According to the report Flint has 122 police remaining. With the designation of the most violent city in the nation for a city with a population over 100,000, the state cannot consider cutting police much more. They kept the State Police helicopters here for 2 days after Halloween.

We have the golf courses. We also have the water plant. Could they sell that off?

Aren't police and fire the main chunk of the general fund?

The state let go of the silverdome for dirt cheap so I wouldn't be surprised if all our golf courses go for dirt cheap as well.

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Post Thu Nov 10, 2011 8:10 am 
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untanglingwebs
F L I N T O I D

Mott and Pierce golf courses are deed restricted. Also Mott and Swartz Creek flood often. One site about Flint states they were made golf courses because they flooded so often. Not much to sell. Kearsley is the only one that might be available for sale.

I don't believe they could sell our water plants as they are municipal and governed by the state. Plus we have high outstanding loans from the revolving water fund when the state demanded Flint have a secondary water supply.

The fire stations are on a brown-out. There have been over 25 retirements from the department and they have not been replaced. To reduce overtime when there are not enough officers to man all 5 stations, staff is moved to other stations and one station is closed (brown out) Unfortunately the ststion at M L King is the one usually closed.

Many officers are paid from grants. There are arguments that officers need to be deployed more efficiently.

To survive Flint needs to find a way to effectively shrink and shut off areas, eliminating the need for services, much like the St John Urban Renewal project that sat vacant for years before becoming University Park. reduce trash pickup, snow plows, police and fire, etc.

Flint has too many vacant properties and most pay no taxes. The land Bank owns 10% or more of Flint.

The Genesee County Board of Commissioners are planning on taking the $604,000 from the county paramedic millage and keeping it. There is some kind of proposal to keep a minimal Sheriff Department patrol and paramedic unit in the city. The city may fight but they are trying to keep a lid on the issue.

The City will probably have to pay back money spent on the Department of Energy Grant as they have ended the agreement.

There are irregularities in the other DCED grants and besides the almost $2 million demanded as repayment more could be coming because of mismanagement.


Last edited by untanglingwebs on Sat Nov 12, 2011 7:33 am; edited 1 time in total
Post Thu Nov 10, 2011 11:30 am 
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untanglingwebs
F L I N T O I D

Found it here: http://www.mlive.com/news/flint/index.ssf/2011/11/review_teams_report_findings_i.html Thanks.
Post Thu Nov 10, 2011 7:08 pm 
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Adam
F L I N T O I D

Protestors demand Flint city leaders standup for democracy

FLINT (WJRT) - (11/11/11) - The city of Flint is headed for a emergency state financial take over, but protestors aren't accepting the news quietly.

Political activists are standing up and speaking out against the decision. The group met outside city hall Friday morning.

The group, Stand up for Democracy, say they want their voices to be heard.

They're calling on city officials to try to fix the problem and not just accept defeat. They feel a state-appointed manager is not the answer for Flint.

Protestors want city leaders to appeal the state's decision. They feel they are being ignored by both Mayor Dayne Walling and city council, so they stood in the cold Friday, united and chanting for democracy.

Their pleas may be too late.

Both the mayor and council tell ABC12 they've decided not to appeal the state's findings or recommendations.

The group of protestors say that is not acceptable.

"Why? That's what we want to know. Why they won't say anything, why they won't do anything? We voted them in to speak for us to do something," said protestor Bishop Bernadell L. Jefferson. "We came down here a few months ago and they said that they were going to stand for us, they would stand up for democracy, they would stand with the people and speak for the people, speak out for the people ... OK so they are coming in, you're just going to roll over and play dead?"

"They need to know that we elected them to do a job, we didn't elect them to walk away from the city of Flint, all of the things that an emergency manager can do, they can do," said protestor Dustin Durbin.

An emergency financial manager appointment is expected to be made in the next few weeks.

video

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Post Fri Nov 11, 2011 11:21 pm 
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