Good news: Flint's books are balanced!

[iheartthed]

Bad news: Flint is almost at the point where it can no longer function as a city, according to the EM.

That’s the assessment of Edward Kurtz, its emergency manager. Without reliable revenue to replace dwindling property and income taxes and state funding, the birthplace ofGeneral Motors Co. [[GM) won’t be able to support its citizens, even if its books are square, Kurtz said.

As state-appointed overseer Kevyn Orr takes control of near-bankrupt Detroit [[9845MF), the experience of Flint shows spending can be made to match revenue. Yet merely making the numbers work may not be enough in cities where population and revenue shriveled with the closing of auto plants.

“How many more employees can we lay off and still provide the basic services?” Kurtz asked in an interview in his office at Flint City Hall. “We can’t just keep putting it on the backs of the people who live in the city. Pretty soon, we won’t have anybody left to tax.”

...

Still, Kurtz wrote in a Feb. 8 report to state Treasurer Andy Dillon that Flint “is approaching the point of diminishing returns” and that “stable revenue is necessary in order for this city, and most other cities in Michigan, to continue to avoid a bankruptcy situation.”

...

Emergency managers can’t fix such deep-rooted dysfunction without changing state and federal policies for funding cities, said U.S. Representative Dan Kildee, a Flint native who co- founded the Center for Community Progress, a Washington-based advocate for land reuse and urban revitalization.

“If we don’t have the will to do those things, then all the strong managers in the world will not pull America’s weakest cities out of their decline,” said Kildee, 54, a first-term Democrat.

Flint is among six Michigan cities that have emergency managers, including Detroit, where Republican Governor Rick Snyder named Orr on March 14. While elected mayors and councils remain, the fiscal overseers have ultimate authority to operate and restructure, sell assets and alter union contracts.

...

This is Flint’s second time around.

Kurtz, a 70-year-old former president of the Baker College system, which is based there, was appointed in 2002 when the city had a $35 million deficit. It had a balanced budget when he left in 2004, yet started running deficits again three years later.

Snyder named a new manager in November 2011, and when he couldn’t continue, Kurtz came out of retirement in August.

http://www.bloomberg.com/news/2013-0...zens-need.html

[illwill]

That's always been in the back of my mind but I think Detroit's in a totally different situation than Flint or most dying cities around the country. Detroit has the infrastructure and more cultural institutions than most cities around the country. Dan Gilbert is relentless and will fill all of his buildings in time. Along with the hundreds of rehabilitated apartment buildings, businesses moving back into the city from the suburbs, positive media stories, private and public contributions, young people looking for city life and small businesses steadily popping up, Detroit will certainly come back. The city will continue to bleed in population but I think the best neighborhoods will grow and strengthen. Population loss should slow up within the next 3-5 years in my opinion. I assume it'll tail off at around 650,000. If Detroit isn't able to sustain itself in 5 years time, then I'll throw in the towel. But for now, I think the city will be fine.

[gumby]

When I moved in to my house in the College Cultural Neighborhood here in Flint back in 2007 my yearly property taxes were $2200 with my taxable value around 45000. Every year since the taxable value has went down every year ato the point the taxable value was just reassessed at 18000 and I think my taxes next year are supposed to be around $1000. This is the true problem in Flint, for once it is not mismanagement of funds like in the past. I was actually annoyed when I got the last tax statement, I never thought I would be pissed that my taxes got lowered but I would rather pay more money and actually have the police available if I ever need them.

[canuck]

When I moved in to my house in the College Cultural Neighborhood here in Flint back in 2007 my yearly property taxes were $2200 with my taxable value around 45000. Every year since the taxable value has went down every year ato the point the taxable value was just reassessed at 18000 and I think my taxes next year are supposed to be around $1000. This is the true problem in Flint, for once it is not mismanagement of funds like in the past. I was actually annoyed when I got the last tax statement, I never thought I would be pissed that my taxes got lowered but I would rather pay more money and actually have the police available if I ever need them.

Sorry to hear that. I think in Detroit's case, the real salvation will come from a wider metro involvement. I am not sure about his ever coming to pass, but I cant see how Detroit will gather steam without a metropolitan govt.

[mwilbert]

The city will continue to bleed in population but I think the best neighborhoods will grow and strengthen. Population loss should slow up within the next 3-5 years in my opinion. I assume it'll tail off at around 650,000. If Detroit isn't able to sustain itself in 5 years time, then I'll throw in the towel. But for now, I think the city will be fine.

I don't think you are completely wrong, but I do think you may be a bit overoptimistic. I agree that Detroit has strengths which Flint lacks, but I would be pretty surprised if the population were able to stay over 650,000. Even in the stronger areas, there isn't all that much population growth, and I don't see how it can possibly become big enough to offset the population losses in the rest of the city within a 3-5 year time frame.

[DetroitPlanner]

I can remember a few years back when Flint had that nut running around who would pretend that his car was broken down on the side of the road then kill or knife anyone who would stop to help him. It took them a while to catch that guy and on his way out of dodge he pulled that same crap in Toledo and a few other places.

I've prayed for the people of Flint since then on a regular basis. I can only imagine that the situation for the police has gotten significantly worse. Being that so many of my friends are Detroit cops and firemen, I feel for all who are stuck in such crazy situations. As bad as I have it trying to plan under such bizarre conditions, I don't have it nearly as bad.

[gumby]

I've prayed for the people of Flint since then on a regular basis.

Proof that prayer is worthless.


Sorry I couldn't resist.