Detroit will be broke by December, says Joe Harris

[kraig]

What if the day-to-day beat patrol was contracted out, and the PD focused on investigating crimes?

That's a question for another thread. It would be interesting to see if any other [[big) city has ever tried something like this. I doubt if anyone here would try something like that.

[daddeeo]

Would Krispy Kreme suffer as a result?

[kraig]

Would Krispy Kreme suffer as a result?

You ain't right. LOL

[313WX]

Would Krispy Kreme suffer as a result?

Only if there was one close enough to the city for them to visit.

[kraig]

Well, well, well. It looks like somebody found some low hanging fruit.








July 14, 2009


Bing renegotiates Detroit sewage system bonds to save millions

By Zachary Gorchow
Free Press Staff Writer The City of Detroit has renegotiated $305 million in sewage system bonds to save the city $11.5 million a year, Mayor Dave Bing announced today.
The bank that had backed the bonds had its credit rating downgraded, triggering an interest rate increase for the city. The city remarketed the sewage system bonds to new investors at fixed interest rates. “This transaction represents a tremendous savings for the citizens of Detroit and all customers of the sewage system,� Bing said in a statement. “I commend our finance team for moving quickly to find a solution that saves our residents money in the short term and puts us in a more secure position going forward.�




This, by no means, solves the city's problems. But I am willing to give the guy credit for doing something. It never hurts to think.

[lilpup]

I suspect there are all sorts of nickel and dime things that have drained the coffers over the years just because people were too uninformed or lazy to do the active management the city needs. Another such example were the city-owned business rental properties where tenants were behind or in default yet the city was paying the utility bills.

[EastSider]

Well, well, well. It looks like somebody found some low hanging fruit.

July 14, 2009


Bing renegotiates Detroit sewage system bonds to save millions

By Zachary Gorchow
Free Press Staff WriterThe City of Detroit has renegotiated $305 million in sewage system bonds to save the city $11.5 million a year, Mayor Dave Bing announced today.
The bank that had backed the bonds had its credit rating downgraded, triggering an interest rate increase for the city. The city remarketed the sewage system bonds to new investors at fixed interest rates. “This transaction represents a tremendous savings for the citizens of Detroit and all customers of the sewage system,� Bing said in a statement. “I commend our finance team for moving quickly to find a solution that saves our residents money in the short term and puts us in a more secure position going forward.�




This, by no means, solves the city's problems. But I am willing to give the guy credit for doing something. It never hurts to think.

This article might need to be cross-posted to Crap Journalism in the D.

Unless the law changed, sewage and water department monies are completely separate from any city's general fund. They are not allowed to be intermingled willy-nilly under any circumstances.

How exactly does this move help the city's general fund deficit?

[kraig]

This article might need to be cross-posted to Crap Journalism in the D.

Unless the law changed, sewage and water department monies are completely separate from any city's general fund. They are not allowed to be intermingled willy-nilly under any circumstances.

How exactly does this move help the city's general fund deficit?

So saving 11.5 million dollars isn't worth anything to you? I stated that this doesn't solve the city's problems. However, it does demonstrate that things can be restructured to favor the city.

Part of the reason why water rates have risen so high for the metro area is because the city viewed the water revenue as such a seperate entity that no one seriously attempted to control the costs.

Hopefully, efforts to restructure will carry over to the general fund as well.

[EastSider]

So saving 11.5 million dollars isn't worth anything to you? I stated that this doesn't solve the city's problems. However, it does demonstrate that things can be restructured to favor the city.

Well, if those 11 and a half million dollars can't affect the general fund deficit, then they mean less to me than, say, dumping Cobo and knocking $15 million of the books. Those extra dollars can't put more police on the street, tear down any more decrepit homes or patch one more pot hole.

Part of the reason why water rates have risen so high for the metro area is because the city viewed the water revenue as such a seperate entity that no one seriously attempted to control the costs.

Huh? Water rates are driven by the costs to maintain the lines and improve the sewage system so we don't shit where we drink. There's also the not-so-small matter of federal court oversight of the system. Judge Feikens has been calling the shots on DWSD for longer than a lot of posters here have been alive.