Incompetence, mismanagement & corruption played a role in Detroit's money problems, says Patterson

DETROIT (WXYZ) - "Pure incompetence and mismanagement and certainly corruption played a role. They put themselves in a trick bag they couldn't get out of," says Oakland County Executive L. Brooks Patterson about Detroit's money problems that led to a federal judge's ruling Tuesday that the city is eligible for bankruptcy.

Macomb County Executive Mark Hackel tells Action News, "You can point fingers all you want and figure out how did it get to this point.. I think most of us know, it was just mismanagement of the city's finances plain and simple."

Both Hackel and Patterson say the ruling was expected and add how Detroit's crushing debt may be isolated, but the effects are not.

"We're pretty secure in Macomb County, but the reality is even our bond rating had been reduced to AA-plus where we once had AAA," said Hackel. "They realize there's been an influx in population in Macomb County looking for a better life, but when they moved here, a lower income caused somewhat of a concern. And because of the bond issues over in Detroit, in close proximity, it's going to have an effect on the Detroit Metropolitan region and it has even hit Macomb County." 

Patterson added that Oakland County was "in the middle of a refi[nance] on the bond issue and we didn't get quite the favorable interest rate we thought we would and that's probably due to Detroit's problems."

 

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