The City of Detroit and the State of Michigan (namely, the Department of Treasury) agreed to terms Tuesday, setting forth specific milestones that must be reached and timelines that must be met in order for the City to receive a scheduled monetary distribution.

Some of the reform milestones would have to be met as early as next week, when the City would be able to receive $20 million from the state. The funds are part of the $137 million bond issue.

In order to receive this first $20 million draw, the city must have action items in place for reviews of seven city departments, approve a contract with Miller Canfield (outside counsel for reform), Milliman (pension analysis), and extend its current contract with Ernst & Young. All by November 20th.

Another $20 million would be available on December 14th under the agreement, if the city meets another list of requirements including hiring a restructuring firm, hiring a firm to review workers compensation claims, begins implementing improvements in the property tax department and develops a plan that complies with U.S. Department of Housing and Urban Redevelopment requirements.

City officials had informed the Financial Advisory Board, established under the Consent Agreement entered into by the State and City, that they may run out of cash by mid-December.

Meanwhile, City of Detroit legal counsel Krystal Crittendon met with City Council members Thursday to discuss her opinion on the legal status of the Consent Agreement given the repeal of PA 4, the former Emergency Manager Act.