DETROIT (WXYZ) - An Ingham County judge has put the brakes on a possible Consent Agreement between the state and the city of Detroit.
The ruling will keep the city and the state from enacting a Consent Agreement, at least until a Show Cause hearing is held March 29.
However, the Financial Review team examining Detroit's finances has until March 26 to present their recommendation to Governor Snyder. A Consent Agreement was one possible recommendation, as is the appointment of an Emergency Manager.
The ruling comes as the Detroit City Council addressed Mayor Bing's Consent Agreement counter-proposal during their regularly scheduled meeting Tuesday.
The mayor's proposal is in response to Governor Rick Snyder's proposed Consent Agreement, which Mayor Bing has openly opposed.
Mayor Bing's office sent what is being called the Financial Stability Agreement to the City Council Sunday evening. No details about what the agreement entails have been released.
Mayor Bing's office says the agreement was constructed with input from both his staff and staff from City Council. He sent out a statement saying it was sent over to City Council Monday.
The statement reads as follows:
Sunday evening my team sent a draft of a Financial Stability Agreement to Detroit City Council members as a counter-proposal to Governor Snyder’s draft consent agreement. It was prepared with the input of both my staff and Detroit City Council staff.
The purpose of this Financial Stability Agreement is to give the City the appropriate tools to address the City’s financial crisis and preserve the rights of Detroiters to be governed by the City’s elected officials.
As I’ve said repeatedly, I have no problem accepting help from the state, and this agreement includes an advisory board that provides the state a vehicle to monitor the city’s progress. This draft agreement also includes a mechanism to establish a budget and limit spending, while providing reporting obligations to the board.
But this counter-proposal purposefully shifts from the language of a consent agreement by recognizing the current legal vulnerabilities of Public Act 4. It is designed to provide a reliable roadmap for the City and State to collaborate in resolving the city’s short-term cash flow challenges and long-term structural changes.
My executive staff plans to meet with Council members over the next couple of days to get their feedback to complete a final draft this week. We believe this is an appropriate compromise to the Governor’s proposed consent agreement, and hope we to reach a consensus with the Council, the Governor and the Treasurer.
Mayor Bing and the City Council had hoped to send their counter proposal to the governor soon. It's not clear how Tuesday's ruling will affect that process.
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