Detroit City Council approves bond issue to save city's finances

Council OKs plan with 6-3 vote

DETROIT – There's a new plan on the table to save the cash-starved city of Detroit.

City Council approved a bond issue Tuesday by a 6-3 vote.

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The bond issue is worth $137 million and is not tied to a consent agreement and/or a financial stability plan.

Council members JoAnn Watson, Gary Brown and Brenda Jones were the dissenting votes. But others had expressed concern.

"This is one of the most important financial decisions this body might have to make. And it's very unfortunate that we don't have every single document at this table to be able to make this decision," said Councilman Andre Spivey. "I want wholeheartedly for my 7 year old or 9 year old to remain in this city. But to know that 20, 30 years from now that it's my fault that they'd have to pay this money back."

The city has essentially refinanced a chunk of bond debt, with the state's permission, to make it through the end of the fiscal year.

"We don't want any payless pay days. Our workers work hard and should be paid for their hard work," said City Council President Charles Pugh. "If this is also, besides avoiding payless pay days, but also avoiding the trigger of an emergency financial manager, then, with trepidation, I approved this bond transaction today."

Statement from Deputy Detroit Mayor Kirk Lewis on bond package

"I want to express my appreciation to Detroit City Council members who voted for the $137 million financial bond package and for acting with necessary urgency. This vote is an important step as we work towards resolving the City's financial crisis. We also want to thank the State for facilitating this critical transaction."

READ: Detroit Financial Review team's report

Snyder says progress being made on deal in Detroit

Gov. Rick Snyder says the state and Detroit could have a consent agreement to restructure the city's long-term finances in place sometime this week.

Snyder told reporters Monday at state offices in Detroit that both sides are making progress on a deal.

UNCUT VIDEO: Snyder press conference 3-26-12

The state and city have been negotiating Detroit's counter-proposal to a Snyder plan that called for a nine-member financial advisory board overseeing the restructuring.

Bing balked at that plan, complaining it took too much authority from elected officials. He had called for a seven-member board to "monitor" the restructuring.