Highland Park is expected to have a review team examine its finances after the Michigan Department of Treasury found fiscal issues in the city, state officials said Monday.
After a presentation by Treasury staff at the Local Emergency Financial Assistance Loan Board’s meeting and hearing from the mayor, City Council members and others, the panel “determined that probable financial stress does currently exist in the city,” said Terry Stanton, a spokesman for the department.
The next step under Public Act 436, the state’s emergency manager law, is Gov. Rick Snyder appointing a review team to comb city records. A timetable for the appointment had not yet been set, Stanton said.
Once in place, the review team has 60 days to submit its findings. If a financial emergency is found to exist, the city has four options: a state-supervised financial consent agreement; the appointment of an emergency manager; a neutral evaluation process; or Chapter 9 bankruptcy.
The Treasury Department last month began a preliminary review of Highland Park’s finances after officials found the city had failed to deposit minimum pension payments on time, violated requirements of the uniform budgeting and accounting act, breached its obligations under an approved deficit elimination plan and ended a fiscal year in a deficit, according to its website.
Highland Park Mayor DeAndre Windom did not immediately respond to a request for comment Monday night.