These Bumblers Popped Up Last Year
THE CITY OF ALLEN PARK, MICHIGAN, is back in the news again. One of the nation's most inept city councils voted last night (Tuesday) to balance their budget by completely eliminating both the police and fire departments.
Firegeezer readers were acquainted with these financial wizards in February of last year when they threatened their firefighters with elimination unless they renegotiated their salary structure way down. (See the Firegeezer video report HERE.) An agreement was made that included a tax increase on the citizens if they approved of it in a vote. But that measure failed at the ballot twice, back in November and again this month on May 8.
You may recall that the primary act that bankrupted the city was the city council’s falling for the song-and-dance of a film maker who told them that if they would provide a suitable location for his big-time movie studios and film production school, then he would give the city $2 million to balance the city budget. The council then sold $24 million in bonds to purchase a property and industrial building that was only assessed at $14 million. The studio maven, Jimmy Lifton then took his act to Detroit without “donating” the $2 million and reneging on the deal to make Allen Park a motion picture home. This all took place in 2009.
Allen Park's $24 million baby
The stunt led to a Securities and Exchange Commission investigation into the validity of the city's bond sale with the threat of fraud indictments. Ever since then the city has been drowning under the debt load of having to pay off the bonds for near-worthless property and unable to provide basic city services.
Now the council has a $4 million deficit and has decided to balance their budget by eliminating the public safety services, police and fire, and contract with a neighboring municipality to provide the services. They voted last night to pass that budget which includes the public safety layoffs.
There is only one tiny little problem… none of the other towns are interested in taking on Allen Park's emergencies. All of them are struggling as it is just to cover their own calls. WJBK-TV was at the city council meeting last night and prepared this video report:
Adding to the appearance of disarray in City Hall, the council voted 6-1 to accept the resignation of the city's top staffer, Administrator John Zech.
And still to be resolved is how the city will pay its bills this year. Appointment of a state emergency manager remains possible, city officials have said.
The city's annual budget had been projected to be $19 million in the next fiscal year, 2012-13, but must drop to $15.8 million because of skidding property-tax revenues combined with $2.6 million in annual bond payments for the city's failed movie studio, according to budget documents. The studio sits largely empty next to City Hall. "Nobody knows what's really going to happen," Mayor William Matakas said before the meeting. None of the cities that Allen Park has approached about contracting for police and fire services has responded, he said.
News Herald photo
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