Treasury: Lincoln Park Released from Receivership

Contact: Danelle Gittus (gittusd@michigan.gov), Ron Leix (leixr@michigan.gov) or call 517-335-2167
Agency: Treasury

Aug. 1, 2017

Michigan Treasurer Nick Khouri today announced the city of Lincoln Park has been released from receivership under the Local Financial Stability and Choice Act and dissolved the Lincoln Park Receivership Transition Advisory Board (RTAB).

The state Treasury Department’s actions follow a recommendation to terminate receivership by members of the Lincoln Park RTAB. Effective immediately, city leadership will regain full local control and manage all internal operations and finances—including the approval and implementation of city council resolutions and ordinances—without state oversight.

“Today marks an important achievement for Lincoln Park residents, the city and all who have contributed to moving the city back to a path of fiscal stability,” Khouri said. “As the community has shown, it can succeed unaided. I am pleased to say the city is released from receivership.”

Since the appointment of the RTAB in December 2015, the city of Lincoln Park has increased operational efficiencies, improved fiscal stability and enhanced economic development opportunities. Key accomplishments include:

  • Eliminating an operating deficit within the city’s General Fund.
  • Outperforming the first year of the city’s two-year budget.
  • Providing a 2016 audited overall fund balance of more than $3.4 million.
  • Adopting a written fund balance policy.
  • Making required contributions to pension funds.
  • Developing and maintaining a six-year rolling capital improvement plan and a five-year financial operations plan.
  • Operationally, having an effective and professional city manager.

In February 2014, Gov. Rick Snyder appointed a five-member Financial Review Team to examine the city of Lincoln Park for conditions indicative of a financial emergency. In April 2014, the Financial Review Team concluded a financial emergency existed and there was little agreement among city officials and other stakeholders concerning a specific strategy for addressing the financial situation.

An emergency manager was present from July 2014 to December 2015, when the emergency manager’s term concluded and the RTAB was appointed.

 

Lincoln Park General Fund

 

 

2014

2016

Revenues

                 $20,427,768

             $24,406,977

Expenditures

                 $21,074,415

             $21,224,506

Operating Margin

                     ($646,647)

                $3,182,471

Fund Balance

                     ($736,450)

                $3,465,055

 

 

 

Long-Term Debt*

                   $1,143,619

                   $260,707

*Debt based on all government funds and not just General Fund.

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