Lansing — A financial emergency exists in Royal Oak Township and Highland Park, according to two separate financial review teams appointed by the state.
Gov. Rick Snyder has 10 days to consider reports from the review teams and make a determination on the financial condition of both municipalities.
According to the team for Royal Oak Township, its year-end balance decreased from $200,324 in December 2011 to a negative $298,983 as of December 2012.
Township officials have failed to adopt a budget for the current fiscal year as required by law and have been unable to meet contractual obligations for fire and police services in a timely, consistent manner.
The Oakland County Sheriff’s Office terminated service to the township in November due to nonpayment of services. Law enforcement is now provided by the Michigan State Police.
In Highland Park, the city’s ending balance in the water and sewer fund increased from negative $5.5 million in June 2012 to negative $12.5 million in June 2013. As of October, the city owed $19.5 million in total accounts payable to several vendors. This included $18.2 million owed to Detroit for water and sewer services.
State-appointed emergency managers are in charge of Detroit, Allen Park, Benton Harbor, Flint, Hamtramck and several school districts.