INKSTER, Mich. (WXYZ) - Governor Rick Snyder has signed off on a Consent Agreement between the city of Inkster and a 7 member Financial Review Team that was looking over the city's books.
While declaring that the city is in a condition of "severe financial stress," the Consent Agreement avoids the appointment of an Emergency Manager to run the community's finances.
Inkster's City Council approved the agreement last week. It contains a plan to help resolve the city's financial problems.
"The over-arching goal of the Local Government and School District Fiscal Accountability Act is to help local municipalities and school districts avoid financial emergencies, by addressing difficulties before they reach crisis stage," said Governor Snyder. "The City of Inkster is a terrific example of how this process can work. Through cooperative efforts and problem-solving, the State can assist Inkster's elected officials, in moving their city forward and returning it to a solid financial footing."
Now that Inkster is operating under a Consent Agreement, city officials must present detailed plans to the state on how they will either reduce spending or increase revenue.
The agreement also calls for changes in how it delivers services to residents.