The River Rouge City Council has adopted a resolution
approving a Consent Agreement with the Financial Review Team appointed to review
the city's finances under Public Act 72 of 1990. The Review Team, which began
its review of city finances in October, determined that a serious financial
problem does exist in the City of River Rouge. However, the Review Team
developed a Consent Agreement designed to help the city address its current
financial problems. Mayor Michael Bowdler signed the agreement Tuesday evening,
immediately after the City Council voted to approve the Consent Agreement
resolution.
"The Review Team appreciates the collective effort city
officials have put forth to address financial problems in River Rouge," said
State Treasurer Robert J. Kleine, Chair of the Financial Review Team. "We look
forward to working together with Mayor Bowdler and city council members to help
put the City of River Rouge onto more stable financial ground."
Under the Consent Agreement, city officials must meet
several requirements including providing the Review Team with a detailed plan
for expenditure reductions and/or revenue enhancements that will address current
or accumulated fund deficits, and beginning discussions with the Emergency
Financial Manager for the City of Ecorse concerning a consolidation of services
between the two cities.
If the city were to violate the Consent Agreement, the
Financial Review Team has authority to determine that a financial emergency
exists in River Rouge and could recommend appointment of an emergency financial
manager for the city.
The Department of Treasury initially conducted a
preliminary review of the city's finances in May 2009, after it was determined
the city had imposed two pension-related judgment levies without prior approval
of the City Council, which is a triggering event under PA 72.
For more information on the Local Government Fiscal
Responsibility Act, including an explanation of the PA 72 process, visit
Treasury's Web site at
www.michigan.gov/treasury and select the Local Government Services button.
###
| 
