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Plan Calls For Pay Cuts For Allen Park Employees

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ALLEN PARK (WWJ/AP) - The state-appointed emergency financial manager for Allen Park plans to cut pay for employees, the mayor and City Council.

Joyce Parker, who was appointed by Gov. Rick Snyder in November, on Wednesday released details of a plan to improve the city’s finances. It includes a 10 percent pay cut for city employees and a 50 percent pay cut for the mayor and members of City Council.

Parker also ordered employees to pay 20 percent of their health insurance costs and cut their holiday and vacation pay. Her other plans include consolidating fire service with a neighboring community and shifting curbside trash pickup to a private contractor.

The Detroit suburb has an estimated $4 million structural deficit, a junk bond rating and declining property tax revenue. In November, voters rejected a tax to help pay $31 million in debt from investment in a failed film studio project that has weighed on the city.

Parker says bankruptcy could be an option later.

TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 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 This material may not be published, broadcast, rewritten, or redistributed.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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