The process began early Wednesday when the Court of Appeals over-turned the Ingham County Circuit Court judge’s temporary restraining order preventing the Detroit Financial Review Team from meeting. Upon meeting, the review team quickly and unanimously approved the proposed consent agreement.
This was soon followed by the Detroit City Council convening. Council President Charles Pugh, President Pro Tem Gary Brown, and Council members Ken Cockrel Jr., Saunteel Jenkins and James Tate then cast the five necessary “yes” votes to give the proposed consent agreement the approval of City Council, 5-4.
Thursday, Governor Rick Snyder, Mayor Dave Bing and State Treasurer Andy Dillon signed-on. After the appropriately signed copies are filed with the state Office of the Great Seal and the Ingham and Wayne County clerks’ offices, the agreement will take effect.
The consent agreement calls for the appointment of a Financial Advisory Board to oversee the city’s finances and make recommendations for improvements. Of the nine members, the Governor will appoint three board members, the Mayor will appoint two, City Council will appoint two, the State Treasurer will appoint one and the Governor and Mayor will jointly appoint one subject to City Council confirmation.
Additionally, the Mayor is required under the agreement to hire a chief financial officer (CFO) who will provide updates to the state, city, and the Financial Advisory Board, and to create the position of program management director to oversee reform efforts. While the agreement provides that the city officials retain significant authority, it is clear that those authorities will transfer in the case of wrong doing or lack of progress.
Potentially the most controversial issue is the consent agreement’s requirement for new labor contract negotiations by midsummer, including switching new hires to a defined contribution retirement system. If an agreement is not reached, Mayor Bing is provided the authority to impose new contracts.
While no estimated timeline is included, the length of appointments and the structure put in place by the agreement lends itself to a minimum of two years under these provisions and likely longer.