Treasury: Royal Oak Charter Township Released From Consent Agreement

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

Nov. 1, 2017

Michigan Treasurer Nick Khouri today announced Royal Oak Charter Township has been released from its Consent Agreement under the Local Financial Stability and Choice Act.

The agreement between the Michigan Department of Treasury and Royal Oak Township expired at midnight on Wednesday, Nov. 1, and the terms no longer have to be followed. The township was the last Michigan municipality following a Consent Agreement.   

“I am pleased to see the significant progress Royal Oak Charter Township has made under the Consent Agreement,” Khouri said. “Township officials went beyond the agreement and enacted policies that provide the community an opportunity to flourish. I am pleased to say the township is released from its agreement and look forward to working with them as a local partner in the future.”

Since 2014, Royal Oak Charter Township has made significant progress operating under the terms of the Consent Agreement and has generally resolved the issues that led to the declaration of a financial emergency. Key accomplishments include: 

  • Creating the first superintendent position to oversee daily township operations
  • Retaining an experienced financial manager to oversee the township’s financial matters.
  • Revising the township’s budget process, leading to the development of comprehensive and on-time budgets.
  • Growing the township’s General Fund balance from a deficit to more than $920,000.
  • Improving fire services through a modified agreement with the city of Ferndale.
  • Improving police services through an agreement with the Michigan State Police.
  • Reorganizing public works operations to increase efficiencies.

In addition, the township has gone beyond the Consent Agreement by:

  • Negotiating a new collective bargaining agreement. The first agreement since 1999.
  • Improving collaboration with Ferndale Public Schools regarding the maintenance of Grant School, which houses township offices.
  • Collaborating with the Oakland County Water Resources Commission to make significant upgrades to the water and wastewater systems.

“Royal Oak Charter Township is in better shape than ever,” said Donna Squalls, Supervisor for Royal Oak Charter Township. “The collaboration between state and township has provided an opportunity to enact reforms to ensure our long-term fiscal sustainability.”

The state Treasury Department anticipates a continued relationship with Royal Oak Charter Township officials and will further support the township as it continues to improve its finances, operations and quality of life for its residents.

Over the last two years, Wayne County and the cities of Inkster and River Rouge were released from their Consent Agreements due to financial improvements and operational reforms.

At this time, only three communities – the cities of Ecorse, Flint and Hamtramck – remain under state oversight through a Receivership Transition Advisory Board. 

# # # #

Subscribe to Treasury Press Releases