Detroit Emergency Manager's Report Declares City "Clearly Insolvent"
The City of Detroit's Emergency Manager, Kevyn D. Orr, submitted his Financial and Operating Plan on May 12, 2013. The Plan provides that its objectives are to ensure that Detroit is able to provide governmental services essential to the public health, safety, and welfare of its citizens and to assure the fiscal accountability and stability of the City. The report, which can be accessed through the following link, City of Detroit Financial and Operating Plan May 12, 2013 (00012913).pdf, states that Detroit "is clearly insolvent on a cash flow basis" (p. 26), and that "the City has effectively exhausted its ability to borrow" (p. 3). While Mr. Orr indicates that he "has a solid foundation from which to build a comprehensive restructuring plan for the City" (p. 1), he has previously indicated that a Chapter 9 bankruptcy filing is a possibility.