Detroit (WWJ) -- Detroit City Council members has approved a request from Mayor Dave Bing to sell $250 million in fiscal stabilization bonds to help wipe out Detroit's deficit.
Bing's Chief Financial Officer, Norm White, made the request Friday.
"Get cash into the system, begin to pay off the vendors, begin to pay off the business of the city of Detroit as well as moving forward the appropriate cuts, consolidation that we have to to make sure we are balanced," White said.
State revenue sharing funds would pay off the bonds within 20 years.
White said Detroit's accumulated operating deficit was about $326 million at the end of June, and likely will grow by another $42 million by June 30, 2010.
Council Fiscal Analysis Director Irvin Corley advised the council to approve the bond sale, saying Detroit could run out of money by January and face state receivership within three years.
Council president Ken Cockrel Jr. and outgoing councilwoman Sheila Cockrel opposed the move. Ken Cockrel wasn't happy that the request was just given to council.
Meanwhile, the mayor's office said Friday afternoon about $55 million in state revenue sharing funding is expected to be released to Detroit following the city's submission of a late financial audit.
A 2008 fiscal year financial report and deficit elimination plan has been turned over to the state Treasury Department.
An audit of city finances is due each Dec. 31, six months from the June 30 end of the previous fiscal year. Ex-Mayors Kwame Kilpatrick and Ken Cockrel Jr. did not complete the last audit.
Bing says his administration has saved nearly $17 million by cutting jobs and more than $11 million by turning over the operation of the city's aging downtown convention center to a regional board.
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