Requirements under Detroit finance deal released
DETROIT (AP) — Detroit officials have to approve a contract to evaluate pension and health care cost reductions and other deals to improve operations are needed before the state will release $10 million to the cash-strapped city.
The requirements are listed in a "memorandum of understanding" tied to the city's financial overhaul plan. Mayor Dave Bing and state Treasurer Andy Dillon released them Thursday.
Detroit is to receive $10 million Tuesday from stabilization bonds held in escrow from a bond sale the City Council approved earlier this year to stave off short-term cash shortages.
An additional $20 million is due the city on Dec. 14.
Other "milestones" required before Tuesday's payment include the City Council's approval of a contract for outside legal counsel to support financial and operational changes.