Our Day of Financial Reckoning Is Now Upon Us

[corktownyuppie]

Freep posted the City of Detroit Financial and Operating Plan

[corktownyuppie]

From the Freep's article the day before...

But political analyst Eric Foster, who sat on a working group of mostly African-American leaders from the city’s business, political, nonprofit foundation and faith sectors, said this week that Orr has told others the deficit could top $600 million.

Foster said he expects the report to muffle critics who argue that the state has exaggerated the extent of Detroit’s financial free fall and that the city would be in far better shape if it were given revenue sharing and back taxes owed by businesses and property owners.

“Even if you get those moneys, it won’t address what you owe,” Foster said. “It may address one year of structural deficits, but that’s it. You still couldn’t fund everything.”

Finally. I feel like we're actually living in reality.

[corktownyuppie]

Relating to the fact that Water/Sewer Debt inflates the numbers...

Debt service on the DWSD debt is included in the formula used to set water and sewer rates, which are paid by users of the water and sewer systems. The current credit ratings for this debt and the cost of capital currently available to DWSD may not accurately reflect the quality of DWSD’s projected revenue streams or the achievements associated with DWSD’s ongoing operational restructuring initiatives.

In other words, if you want the Water/Sewer Dept to be able to borrow at reasonable [[instead of loan shark) rates, then you need to separate them [[and their pensions) off of the books of the City of Detroit.

[corktownyuppie]

Q: Now that the report is made public, what will happen next?

A: Orr will hold public meetings on the report with various community and civic groups. He also will have at least one public hearing for residents within 30 days, as required by Public Act 436.

Oh get your popcorn out. That public hearing is gonna be a doozy.

[Richard]

Relating to the fact that Water/Sewer Debt inflates the numbers...



In other words, if you want the Water/Sewer Dept to be able to borrow at reasonable [[instead of loan shark) rates, then you need to separate them [[and their pensions) off of the books of the City of Detroit.

It was already set up like that before ,unless now that it is no longer under separation through court order and has the possibility of reverting back to full city control by default.

Interesting how projected casino revenues were used as collateral ,it seems kinda risky if the casino has a slow year where would the make up funds come from,seems like the casino is not the only place to gamble.

All and all well prepared but it seems to contain not much more then has been discussed here adding some nice charts.

So what would the reason of meetings be? There are no answers yet and those answers will be what will be in dispute.This is more of a state of the city versus resolutions or proposed soulutions.

I am not meaning to demean but I am sure most already live daily what was spelled out and would rather hear how the lights will be turned back on.

So how many mayors and CC members does it take to change a light bulb?

I guess none could so it took a EM .

So in the absence of leadership other then a EM and until a new mayor and CC can be put in place for representation in the fall I wonder where the ideas or solutions even suggestions will come from.

I wonder if in between all the hatred of outsiders ,the city verses suburbs thing there can be some common ground where everybody kinda gets together for the common good. Think it is possiable ? I would think it would bennifit everybody regionally in a positive way.

This is the start the horses are out of the gate and the devil will be in the details , I guess it leaves a two choice race either to the bottom or to the top,my bet would be on the latter because when you combine the brain power from the city and suburbs it is powerfull .

[townonenorth]

I guess it leaves a two choice race either to the bottom or to the top,my bet would be on the latter because when you combine the brain power from the city and suburbs it is powerfull .

Not so much, really, from where I sit. It's only a matter of time when certain civic entities will be tumbling down. It's a lot like the Scarecrow in the Wizard of Oz. You can give someone a diploma, but that doesn't mean they have a bit of brains or common sense.

[aj3647]

Kent Brockman: Professor, without knowing precisely what the danger is, would you say it's time for our viewers to crack each other's heads open and feast on the goo inside?
Professor: Yes I would, Kent.

[Honky Tonk]

Not so much, really, from where I sit. It's only a matter of time when certain civic entities will be tumbling down. It's a lot like the Scarecrow in the Wizard of Oz. You can give someone a diploma, but that doesn't mean they have a bit of brains or common sense.

I call BS on THAT! The Scarecrow started doing calculations after he was given the diploma!!!

[Wesley Mouch]

Finally. I feel like we're actually living in reality.

CTY, never underestimate the power and allure of denial.

[gnome]

Anyone who has lived in Detroit, or done business in Detroit, has known for at least 10 years that we have been living in a 3-card-Monty world.

Like it or not we are a mess. Like a formerly 400 pound woman who is now down to 120, there is a lot of extra stuff hanging around. Most of it covered in bedsores and in need of a delousing.

[Gannon]

He is merely issuing the foregone conclusion assigned by Snydely when this fiasco was being conspired.

Bing lays down for it all and even hired Orr's old firm ahead of time. He got some guarantee. Not sure what. Probably that forest of medicinal stolen from those folks over at Mack & Chene...Bong never forgot walking through all that beautiful cannabis. It should all be properly cured by now.

Orr steps in, orders millions of dollars of business from his old firm...if I'm not mistaken...and magically this report arrives. Doesn't anyone else wonder how it happened so quickly?!

I didn't see hundreds of new bodies invading the CAY, and got no reports of armies of accountants and actuaries raiding the books of every department.

I SWEAR I saw Orr walking to a surface parking lot west of the Guardian one night...but I didn't have my glasses on so I'm not sure. Dude really looked like him though when he smiled. I was guessing that there were no parking spaces for him in the building. No welcome mat, either.


Ugh. This is happening all too quickly for comfort. Yeah, I know something is needed...I just don't trust this fellow hired by the worst governor in the history of Michigan.

[coracle]

End the continuous talk about how bad it is while all the time it's getting worse. The bottom line is Bankruptcy. Do it. Get it over with.
Pay a bunch of FM's to run the City because Elected Officials have proven themselves inadequate over 40/50/60 years.
Michigan deserves to get this bogie off its back.

[Wesley Mouch]

He is merely issuing the foregone conclusion assigned by Snydely when this fiasco was being conspired.
...snip...
Orr steps in, orders millions of dollars of business from his old firm...if I'm not mistaken...and magically this report arrives. Doesn't anyone else wonder how it happened so quickly?!
...snip...
Ugh. This is happening all too quickly for comfort. Yeah, I know something is needed...I just don't trust this fellow hired by the worst governor in the history of Michigan.

'Armies of accountants' created the mess. All working to make a bad situation look survivable. Not trivial, but probably not so big a job to just remove all the BS from the books and just look at the simple story.

I've been wondering why it all took so long. His biggest job was probably fighting off the armies of accountants and actuaries each telling their story of why the problem was someone else's spending.

A quick word of support for Snydely. I remain impressed that he's stepped into this mess. Too many state politicians have avoided Detroit issues for too long. More people in power who are willing to slay some sacred cows might bring actual jobs to Michigan and Detroit. Or we can just keep fighting him as he dares to reform. The progressives should be so progressive.

[Gannon]

Progressive is one thing. And Snydely ain't it.

Going back on his word, stuffing legislation down the populace's collective throat using legislative tricks, and performing secret meetings does not make one progressive. It makes one a slimey Snydemaster. He is a sneaky, untrustworthy scammer...likely on the Koch brother's payroll.

[gnome]

Joe Harris laid out our problems in 2005. Told everyone at City Hall that the situation was not sustainable. No one listened.

[Eber Brock Ward]

Maybe if you call him "Snydely" again he will magically be out of office?

Or maybe he'll keep being the first *major* political force that this city's had for its good in a long time, after being pillaged by its own politicians and unions.

[gnome]

http://www2.metrotimes.com/editorial/story.asp?id=7615

Governor Snyder is not some Grand Wizard, Orr is not his House Negro, and Andy Dillon is not a Trotskyite planning a Redfodian invasion of Warrendale.

how much truth do people need? We have been the poster children for featherbedding and senseless corruption. Wise up.

[Gannon]

I believe Harris was right. Said so at the time, reinforce it now. Who appointed him to that EM role in Benton Harbor? Governor Mole, right?! She wanted him on the other side of the state quickly, far away from her crony-alumni from McNamara University. Never did hear much from him after that, sure he was busy, but I'd bet some non-disclosure agreement was part of the deal.

So why the hell were there many millions stolen from the city's quickly emptying coffers, all to enrich some outstate firm?! What the hell is going on here?

Lotsa money to update an old report. I hope ol' Joe got a bump from all that, because you just KNOW there was some heavy plagiarizing happening...

[Gannon]

Maybe if you call him "Snydely" again he will magically be out of office?

Or maybe he'll keep being the first *major* political force that this city's had for its good in a long time, after being pillaged by its own politicians and unions.

Yeah, there hasn't been any politics in this town before this sneaky bastard took his office. Thanks for the giggle, though. He is merely the latest pillager. It has come full circle. I agree the previous leaders and unions and corporations all did their part fleecing the city...among others in a very long line. Snydely is pulling caboose on this gravy train.

I'll go back to using his full, real name when he earns my trust back.

[gnome]

Gannon, You act like an out-of-state firm is a bad thing. You want somebody with connections to this mess? Someone with fraternal linkage? Someone who knew somebody from the old neighborhood?

no, you need the coldest eye around, somebody who can see through fraud and incompetence, you need the best around and the best around ain't around here.

If we had the best, we wouldn't be in this mess.

[aj3647]

Yeah, there hasn't been any politics in this town before this sneaky bastard took his office. Thanks for the giggle, though. He is merely the latest pillager. It has come full circle. I agree the previous leaders and unions and corporations all did their part fleecing the city...among others in a very long line. Snydely is pulling caboose on this gravy train.

I'll go back to using his full, real name when he earns my trust back.

So what's your magic solution then?

[coracle]

Progressive is one thing. And Snydely ain't it.

Going back on his word, stuffing legislation down the populace's collective throat using legislative tricks, and performing secret meetings does not make one progressive. It makes one a slimey Snydemaster. He is a sneaky, untrustworthy scammer...likely on the Koch brother's payroll.

Not really. He's the antidote that we've needed for decades, and you know it's working when those that have let it happen start squealing and using childish references because they have nothing else.

[Gannon]

Gannon, You act like an out-of-state firm is a bad thing. You want somebody with connections to this mess? Someone with fraternal linkage? Someone who knew somebody from the old neighborhood?

no, you need the coldest eye around, somebody who can see through fraud and incompetence, you need the best around and the best around ain't around here.

If we had the best, we wouldn't be in this mess.

Of course not...come on, Gnome, now you are merely goading. Hell, you're almost Goating!

There were other firms available other than the one which previous employed the guy who had not been hired until the twenty-minute drill...that fake appeal in Lansing...was staged for the masses.

It stinks...but I can see from the governor's perspective, all the fraud and puppetry was important to make his business run efficiently...I hear all sorts and forms of dirty dealings happen within corporations all the time. Even espionage. I am SO glad he's running our state like a business. Not.

[Gannon]

Not really. He's the antidote that we've needed for decades, and you know it's working when those that have let it happen start squealing and using childish references because they have nothing else.

I have nothing to lose in this...you ASS U ME that I am with some imaginary 'other side' when I am merely calling out what I see.

My derivative names have gone on for a decade on this forum. Please catch up, I've been childish way before this current debacle. But please, I prefer the term Impetuous.

but you don't have to capitalize it to capitalize on it

[Gannon]

So what's your magic solution then?

Since when does any critic need to have a solution to the problem at hand?

Those are terribly different functions.