Detroit regains full control of city finances

Detroit’s financial oversight commission voted unanimously Monday to return full financial control to the city’s mayor and city council, three years after the Motor City completed the largest municipal bankruptcy in U.S. history. Detroit earned its way out of state oversight by delivering three consecutive years of balanced budgets. City leaders expect to end fiscal year 2018 with a $36 million operating surplus. That’s quite a turnaround for Detroit, which had $12 billion in debt when Republican Gov. Rick Snyder put it under state receivership in 2013. It exited bankruptcy in 2014 after restructuring about $7 billion in debt and setting aside $1.7 billion in savings and revenue to improve city services over the next decade. “For the first time in four years, Detroit’s elected leadership will be in complete control of government functions” Mayor Mike Duggan, a Democrat, said. Although officials regained control of most city functions in 2014, the oversight commission continued to review borrowing and large city-issued contracts.