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Forum Post: Another example of why cities are going broke - Detroit emergency manager says city 'clearly insolvent'

Posted 11 years ago on May 13, 2013, 8:51 p.m. EST by Stormcrow2 (-184)
This content is user submitted and not an official statement

By Nick Carey and Steve Neavling

http://news.yahoo.com/detroit-emergency-manager-says-city-clearly-insolvent-202324348.html

(Reuters) - Detroit is clearly insolvent and could face a possible bankruptcy if talks with labor unions and creditors do not make substantial progress on easing the city's cash crunch, the city's emergency financial manager said on Monday.

In his first official report, Emergency Financial Manager Kevyn Orr presented a grim view of Detroit's problems.

The city faces a $162 million cash shortfall because of pension deals that outstrip its ability to pay, and a $60 million operating deficit, all amidst a cityscape of abandoned homes and businesses, broken streetlights and fractured services, the report said.

Operating expenditures have exceeded revenues by about $100 million a year since 2008, Orr's report found, bringing the accumulated unrestricted deficit to $326.6 million.

Payments of Detroit's long-term debt are eating up nearly 20 percent of Detroit's budget.

Pension payments to city workers are one of the largest drains on the city's finances.

Detroit will make $31 million in pension payments this year, but will defer another $108 million.

The city also has $5.7 billion in unfunded retiree benefit obligations, more than previous estimates, the report found

13 Comments

13 Comments


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[-] 1 points by redandbluestripedpill (333) 11 years ago

Cities are basically not sustainable, that is what this stat shows.

There is an optimum size for communities, and they really shouldn't be much bigger. Of course, in the corporate world of trade, there will be big ones.

The problem is dependence on corporations. It results from education guided by corporate goals. This is a result of the supreme court giving corps rights.

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[-] 1 points by GirlFriday (17435) 11 years ago

You are such an ignorant worthless filthy, disgusting fucking piece of shit.

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[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 11 years ago

Don't hold back - tell it like it is. No more candy coating.

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[-] 2 points by GirlFriday (17435) 11 years ago

It's just revolting.

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[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 11 years ago

It is sickening almost beyond belief - almost - as this is just another repeat of raping the worker - this has happened now so many times - that we are ALL a little too used to it - we are all a little too familiar with it. So we are not in the bathroom heaving up our guts right now.

All of the thefts perpetrated by those in power have got to end.

Because - the results are all to often Death - and as it was caused - MURDER - mass murder. For those of you just getting here - get familiar with the term - Democide http://en.wikipedia.org/wiki/Democide

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[-] 2 points by GirlFriday (17435) 11 years ago

This little persona knows that this has been an issue and one that has been discussed frequently by Shooz. It's a piece of shit.

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[-] 3 points by DKAtoday (33802) from Coon Rapids, MN 11 years ago

No argument from Me.

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[-] -1 points by Stormcrow2 (-184) 11 years ago

Lets see you have a city with a 15 billion dollar debt with a population of around 800,000. Think maybe Detroit has had a spending problem over the years

Just think if everyone in the country ran their household like Detroit, everyone would be out on the streets.

Has nothing to do with Unions and all to do about "debt accumilation" without being concerned as long as they were able to borrow.

Now the money pit dried up and they are worried.

Wow I really feel sorry for them. No wonder the population has declined and people are leaving like rats on a sinking ship.

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[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 11 years ago

Poor planning and under funded retirement/pension plans - Problems created by executive management ( public & private ) and they want to go austerity. So those in need ( those betrayed ) will be the 1st ( only ? ) to take a beating - AGAIN.

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[-] 1 points by shoozTroll (17632) 11 years ago

http://cognidissidence.blogspot.com/2013/03/the-hostile-takeover-of-detroit.html

Why do I get the feeling you know less about Detroit than yahoo does?

Why do you HATE retirees?

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[-] 0 points by OTP (-203) from Tampa, FL 11 years ago

They can take the union payments and put them at 0. Doesnt matter, they will default and with it all the pensions that are tied to those bonds will go to shit as well.

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