The Financial Stability Agreement, or consent agreement, entered into between the State of Michigan and the City of Detroit remains in flux as the city continues its lawsuit. Detroit corporate counsel Krystal Crittendon filed suit in Ingham County Circuit Court claiming that the consent agreement is null and void because of the State’s alleged default status to the city on multiple items.
The State, through a Department of Treasury communication to new Detroit CFO Jack Martin, indicated that if some parts of the consent agreement are not applicable, so are others – such as the complex $137 million financing put into place to prevent the city from going broke in April. The city is scheduled to receive June and August payments of $25.1 million apiece, and $27.7 million in October – funding the State says will not be received by the City of Detroit unless the lawsuit is withdrawn.
Meanwhile, Detroit City Council has yet to appoint their two individuals to the Financial Advisory Board created by the consent agreement and the all-important position of program manager remains vacant.