Detroit, Michigan treasury reach agreement on milestones for escrow fund money
State will hand over money if city hires restructuring team, makes changes
The Michigan Department of Treasury and Detroit Mayor Dave Bing's administration said Thursday they had reached an agreement on milestones that must be met in order for the city to receive installments of funds being held in escrow by the state.
“The benchmarks mayor Bing and I have established provide the city with a transparent roadmap to receive bond proceeds that have been set aside in escrow. The funds from the bond proceeds were never intended to fund the status quo in Detroit, but rather aid with its government reforms," said Michigan State Treasurer Andy Dillon. "While some progress has been made in the city since the signing of the Financial Stability Agreement in June, it is moving slower than what all parties would have anticipated. There is still much work to be done.”
Read: Milestone agreement
Among the things in the agreement, the city must hire a restructuring team by Dec. 14, get help for its worker compensation program and bring on assistance firms to review its management and operational plans.
The city also agrees to make changes in purchasing and how contracts are voted on.
"We are committed to our reform agenda as it is the only way for the city od Detroit to achieve financial stability and to improve the quality of life for our citizens. The Milestone Agreement reached between the state and my administration enables all of the key stakeholders to be on the same page as it relates to the process of the city's restructuring plan," Bing said. "The Milestone Agreement is a significant tool that will help us succeed in transforming Detroit."