Detroit’s Financial Future: Duggan Leaves Behind a Strong Reserve
As Detroit Mayor Mike Duggan wraps up his tenure, he emphasizes the robust financial reserves he’s leaving behind for the city. Over the past 11 years, Detroit has managed to maintain a streak of balanced budgets since its 2014 bankruptcy. The city closed its most recent fiscal year with a $105 million surplus and nearly $550 million in reserves.
Concerns had been raised about a looming “pension cliff”, due to the city’s decade-long pause on pension and debt payments post-bankruptcy. However, Duggan reassures that the city has navigated these challenges effectively. “We’ve been making our pension payments for two years. But because [City] Council set aside hundreds of millions of dollars in the retiree protection fund, we were prepared for it,” Duggan stated.
With Duggan stepping down after three terms to pursue a gubernatorial bid as an independent, the city’s leadership baton will pass to Mayor-elect Mary Sheffield next month.
Sheffield acknowledges the efforts that have brought Detroit to this stable financial point, highlighting the collaboration and tough choices involved. She expressed her commitment to maintaining this trajectory, saying, “As the mayor-elect, the next mayor, I can assure you that it is my goal to ensure that we have four more years of balanced budgets and surpluses as well.”
Looking ahead, Sheffield emphasizes her focus on safeguarding Detroit’s financial health, reinforcing reserves, and prioritizing strategic investments that bolster neighborhoods, enhance essential services, and promote sustainable growth.
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