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State Names Financial Review Team For Allen Park

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ALLEN PARK (WWJ/AP) - Michigan officials have appointed a six-member review team to look over the finances of Allen Park.

The governor’s office says Tuesday’s action comes after a preliminary review found “probable financial stress.”

The appointment of a review team could lead to an emergency manager under Public Act 4 if Allen Park is found to be in a financial emergency.

The state says city officials haven’t filed an adequate or approved deficit elimination plan and failed to adjust Allen Park’s budgets in the face of declining revenues and increased costs.

Members of the review team include Deputy State Treasurer Roger Fraser and Frederick Headen, the director of the Michigan Department of Treasury’s Local Government Services Bureau.

The team will have 60 days to comb over the city’s finances before reporting their findings to Gov. Rick Snyder. A 30-day extension can be requested.

Allen Park, home to about 28,000 people, is struggling to erase a $1.6 million deficit. Falling property values and a failed movie studio development project are blamed in its problems.

If an emergency manager is appointed, Allen Park would be the eighth Michigan city where the state has intervened. Flint, Pontiac, Benton Harbor and Ecorse all have emergency managers. Three more cities, including Detroit, are under consent agreements.

TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.

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