Posted on 07/26/2016 12:17:12 PM PDT by MichCapCon
The city of Detroit’s 2015 annual report shows that one year after emerging from bankruptcy, its general fund was in the red by $145.4 million. But a city official says this is due to one-time expenses left over from the bankruptcy process, and that Detroit’s financial footing is much stronger than in the past.
The city exited bankruptcy on Dec. 10, 2014. The latest annual report covers the period of July 1, 2014, through June 30, 2015.
According to John Naglick Jr., chief deputy CFO and finance director for the city, those one-time, bankruptcy-related spending items were significant. They included a $120 million loan repayment and $240.6 million in pension fund contributions the city made as part of the bankruptcy agreement. Detroit also had to pay $57 million in professional fees related to the bankruptcy. The one-time expenses totaled $417.6 million.
Naglick said much of this spending was offset by $529.7 million in “special gains and financing issued to settle the bankruptcy,” which increased the general fund balance by $384.3 million.
“So, the end result is that city emerged with a much stronger fund balance sheet post-bankruptcy,” Naglick said in an email.
Detroit has 16 fewer employees in 2015 than the previous year. But reducing the payroll in recent years didn’t save the city from bankruptcy. Detroit had 9,495 full-time positions in 2006 and that number decreased to 6,187 in 2014, a 35 percent drop over eight years.
That's a lot of 'professional fees'...
I have found several examples of the “bi-face” tools shown in the photograph from a region several miles from the location mentioned. I live on a steep area of the Balcones fault, so the there is little material to date the tools. It all washes down the slope, leaving mostly bed rock where these have been found. I have been assuming they were from the Clovis era, but I have always been curious why they seemed more primitive than the Clovis points.
Who knew that going broke cost so much? I could have purposely got them there for allot less.
Oops, wrong thread.
See how great Democrats are?
They’re only in the red by $145 million now... I’m sure after just deciding to “not count” all the other money they owe. Now if they could just sucker 145 millionaires to move to Detroit and rape them, they’d be set til next year.
Detroit, the Venus Flytrap of the USA.
Detroit is still saddled by massive/unsustainable pension debt and will go bankrupt again as this pension debt was never addressed...
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