DETROIT (WWJ) – Making a comeback, a once bankrupt Detroit has a balanced budget and a near $63 million surplus.
Figures were released this week from Detroit’s Comprehensive Annual Financial Report for the fiscal year that ended June 30, 2016. It’s the city’s second consecutive balanced budget for the city.
Mayor Mike Duggan’s office reports a $51 million surplus is projected for the current fiscal year ending on June 30.
“This audit confirms that the administration is making good on its promise to manage Detroit’s finances responsibly,” said Mayor Mike Duggan. “With deficit-free budgets two years in a row, we have put the City on the path to exit Financial Review Commission oversight.”
Improved long-term finances also are allowing Detroit upgrade public safety, neighborhoods, transportation, recreation and other public services that improve residents’ quality of life, the mayor says.
A state-appointed emergency manager filed Detroit’s bankruptcy petition in 2013. Detroit exited bankruptcy in December 2014, restructuring $7 billion in debt.
Among other requirements, Detroit must have three consecutive years of deficit-free budgets to exit active oversight by the review commission, under terms of the city’s exit from municipal bankruptcy protection.
“The audit shows that the City has performed better than budget at the same time we have made investments that will improve our financial future,” said John W. Hill, Detroit’s Chief Financial Officer, in a media release. “I want to thank the leadership and staff of the Office of the Chief Financial Officer for all of their hard work and dedication, as well as department directors for operating their budgets in a fiscally responsible manner.”
[View the complete CAFR for 2016 here].
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