Deadline approaching for financially distressed cities grant program

With the application deadline rapidly approaching, the Michigan Department of Treasury is reminding cities, villages, and townships experiencing financial distress to apply for a grant to help fund special projects or services that move the municipality toward financial stability and free up tax dollars for important services.

Municipalities interested in applying for an award must submit their Financially Distressed Cities, Villages and Townships (FDCVT) grant program application to the state Treasury Department by 11:59 p.m. on Friday, Oct. 20.

All cities, villages and townships experiencing at least one condition of “probable financial distress” as outlined in the Local Financial Stability and Choice Act are eligible to apply. A total of $5.4 million in funding is available for Treasury to award through the FDCVT grant program for the 2018 fiscal year.

Preference will be given to applications from municipalities that meet one or more of the following criteria:

• A financial emergency has been declared in the past 10 years.

• An approved deficit elimination plan for the General Fund is currently in place.

• Two or more conditions indicating “probable financial distress” currently exist.

• The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For additional information about the FDCVT grant program or to download an application, go to www.michigan.gov/revenuesharing.