State oversight board abolished, full local control re-established
Michigan Treasurer Nick Khouri on Tuesday announced that the city of Pontiac has been released from receivership under the Local Financial Stability and Choice Act and dissolved the Pontiac Receivership Transition Advisory Board (RTAB).
The state Treasury Department’s actions follow a recommendation to terminate receivership by members of the Pontiac RTAB. Effective immediately, city leadership will regain full local control and manage all internal operations and finances without state oversight.
“Pontiac has seen great economic progress and opportunity since the lost decade,” Khouri said. “Residents, the city and all who contributed to moving the community back to a path of fiscal stability should take great pride in this important achievement. Pontiac has the ability to prosper independently and continue its growth in the future.”
Since the appointment of the RTAB in August 2013, the city of Pontiac has increased operational efficiencies, improved its fiscal stability and enhanced its economic development opportunities. Key accomplishments include:
• Ending its fiscal year 2016 with a General Fund balance of $14 million.
• Outperforming its two-year budget by retaining $5.6 million more than originally projected.
• Having multiple economic development opportunities within the community.
• Implementing active blight remediation programs throughout the community.
In July 2007, the mayor of the city of Pontiac requested a preliminary review of the city’s finances. In August 2007, the Financial Review Team concluded a financial emergency existed, with the city entering into a consent agreement in June 2008.
In February 2009, Gov. Jennifer Granholm informed the city of its failure to abide by the terms of the consent agreement and take adequate steps to address its serious financial condition. Granholm authorized a financial emergency manager in March 2009.
An emergency manager was present from March 2009 to August 2013, when the financial emergency was resolved and the Pontiac RTAB was appointed to oversee the city’s transition back to local control.
In March 2016, Khouri authorized the mayor and city council to have greater responsibility for conducting city business as outlined in the City Charter. The Pontiac RTAB has been meeting “as needed,” with the city providing quarterly reports to the state advisory board.
Earlier Tuesday, Khouri announced that the Detroit suburb of Lincoln Park had also been released from financial receivership.
––––––––––––––––––––
Subscribe to the Legal News!
http://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
