- Associated Press - Thursday, January 23, 2014

DETROIT (AP) - Bankrupt Detroit had a general fund surplus of $34.1 million at the end of second quarter of the current fiscal year, which ended Dec. 31, according to a report from the state.

Still, “the financial condition of the city of Detroit continues to be dire,” emergency manager Kevyn Orr wrote in the document posted on Detroit’s website.

The quarterly report was filed Jan. 15 with the state treasurer’s office. The surplus figures through Dec. 31 are preliminary and unaudited.

The city continued to make payments on some bond and other debt but made no contributions to Detroit’s two retirement systems during the quarter.

At the end of the second quarter in December 2012, the reported surplus was $132.2 million.

Orr was appointed last March by the state to fix Detroit’s finances. He filed for bankruptcy in July, saying Detroit’s debt was at least $18 billion. Bankruptcy Judge Steven Rhodes let Detroit enter bankruptcy last month.

Orr faces a court-imposed March 1 deadline to present his plan to bring the city out of bankruptcy. His team currently is negotiating with city unions, retirees and other creditors.

Orr wants to exit bankruptcy no later than September.

“Concluding the bankruptcy case in a timely and efficient manner is important to the city’s revitalization and reinvestment activities because it will free the city from burdensome and unsustainable debt obligations and allow the city to reinvest in operations and infrastructure,” he said in the report.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide