Detroit Emergency Manager Kevyn Orr )
Detroit— The city of Detroit’s financial condition remains dire but cash flow improved during the first quarter since the biggest municipal bankruptcy filing in U.S. history, according to a report released Wednesday.
Revenue fell 9 percent though the city had an unrestricted cash balance of $128.5 million during the quarter ending Sept. 30, largely achieved after the city stopped paying unsecured bond debt and withheld $44 million in payments to two pension funds.
“The financial condition of the city of Detroit continues to be dire,” Emergency Manager Kevyn Orr wrote in the report sent to outgoing state Treasurer Andy Dillon on Tuesday.
Total general fund revenue was $220.2 million
Property tax revenue plummeted more than 17 percent during the quarter to $51.5 million while city income taxes fell almost 5 percent to $50.9 million.
Tax revenues from the city’s three casinos dipped almost 4 percent to $43.7 million.
The city filed Chapter 9 bankruptcy on July 18, and a judge will hold a mini-trial next week before deciding whether Detroit is eligible for bankruptcy relief.