Initial review finds budget stress in Lincoln Park
Updated On: Dec 03 2013 03:47:12 AM EST
A Michigan board says the southern Detroit suburb of Lincoln Park faces budget problems, a step toward possible state intervention in its operations.
The state Emergency Loan Board ruled Monday that Lincoln Park is in "probable financial stress," based on the state Treasury Department's preliminary review.
The review says Lincoln Park borrowed $2.5 million from its water and sewer fund for a pension payment in fiscal 2013, and 46 percent of its general fund revenues in fiscal 2012 went to debt payments and retirement obligations.
Gov. Rick Snyder is expected to next appoint a financial review team. It decides if there's a financial emergency.
If so, it could lead to appointing an emergency manager, a consent agreement, mediation, or a bankruptcy filing.