Sources: Detroit City Council has no interest in consent agreement

By Mara MacDonald, Local 4 Reporter, @MaraMacDonald
Published On: Mar 12 2012 10:25:14 PM EDT
Updated On: Mar 12 2012 11:00:14 PM EDT

Sources say drafts of the agreement are not supported by City Council members.

DETROIT -

Michigan Gov. Rick Snyder will hand over a consent agreement on Tuesday to the Detroit mayor and City Council.

Snyder is prepared to send over the agreement in the morning to show Detroit's leaders what the state has planned for the city.

However, sources tell Local 4 that many City Council members have no interest in taking the deal. Some members have seen drafts of a consent agreement but not the final agreement. They say it's a starting point but don't expect Tuesday's delivery to be a done deal.

"It's basically people agreeing. To have the city agree with the state and say here's a path to move forward that we're going to hold people accountable for actually doing," said Snyder.

Snyder was explaining to a crowd at the Detroit Athletic Club exactly what a consent agreement means. He doesn't want the state to take over Detroit. He doesn't want to appoint an emergency financial manager for the city. However, if the consent agreement cannot get off the ground, he will.

This is the least invasive option for Detroit. The other options: An emergency manager or municipal bankruptcy.

Still, City Council members aren't showing support.

"I can tell you just in general terms that I don't think this is going to get much if any traction at all from City Council," said Councilman Ken Cockrel Jr. "I think the approach from the Council will probably be thanks, but not thanks. However, we are willing to continue dialoguing with the state treasurer's office and with the governor."

Here's why: Sources who have seen a draft of the agreement told Local 4 it turns the city over to Mayor Dave Bing who would keep his power and a nine-member financial advisory panel with members chosen by the mayor. The governor, the state treasurer and the City Council would get one pick of who sits on the panel.

In the draft language of the consent agreement no provision is made for Detroit to receive any state cash. Both Mayor Bing and City Council members have said they don’t believe any option that doesn’t include cash for the city to be a truly workable option.

State Treasurer Andy Dillon told Local 4 if the worst case scenario comes true and Detroit runs out of cash the state will make sure the city makes it through the end of the fiscal year which is June.

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