Michigan Department of Treasury

Today at 1:12 PM

--- PRESS RELEASE --For Immediate Release

December 18, 2014

FOR IMMEDIATE
RELEASE
www.michigan.gov/treasury
Contacts: Terry Stanton/Treasury (517) 335-2167
Sara Wurfel/Governor (517) 335-6397

Hamtramck financial emergency resolved

Governor appoints Receivership Transition Advisory Board
Gov. Rick Snyder today announced that the financial emergency in the city of
Hamtramck has been resolved and appointed a Receivership Transition Advisory Board
to help ensure a smooth transition and guide the city to continued financial stability.
I am very pleased to accept Cathy Squares recommendation that the financial
emergency in Hamtramck has been sufficiently addressed so we can begin the process
of transitioning back to local control, Snyder said. I know members of the
Receivership Transition Advisory Board will work with local leaders to ensure that the
city of Hamtramck remains on solid financial footing.

Cathy Square, appointed emergency manager in June 2013 following city councils
selection of the emergency manager option under PA 436, notified the governor
Wednesday of her determination that the citys financial emergency had been
sufficiently addressed. Square cited several factors and accomplishments, including:
Securing a low-interest, $2.3 million loan with a 10-year repayment schedule to satisfy
a liability to the Municipal Employees Retirement System;
Obtaining savings in health care for current employees and retirees, negotiating salary
reductions for union and non-union employees and department heads, eliminating
minimum staffing requirements and other changes for savings of approximately $1
million;
Bringing city controller and assessor positions, previously outsourced, back into city
administration; and,
Selling surplus vacant land and tax reverted properties for more than $350,000
Square has enacted a two-year budget for the city and this morning issued her final
order as Emergency Manager. The order outlines responsibilities of elected officials
and their collaboration and cooperation with the RTAB.
It has truly been an honor to serve the residents of Hamtramck, Square said. The
steps necessary to return the city to fiscal stability were not easy ones, but we have
moved Hamtramck forward together.
Square will continue to be involved with the city as a member of the Receivership
Transition Advisory Board (Department of Technology Management and Budget
directors designee). Other RTAB members include Debra Roberts, executive director
of the State Building Authority (state treasurer designee), Karen Young, Ph.D., with
Support Management Services (representing persons with relevant professional
experience), and Mark Stema, CICA, consultant, Henry Ford Health System
(representing persons with relevant professional experience). Ms. Young and Mr.
Stema are Hamtramck residents.
Square and representatives from the Department of Treasury will hold a media
conference call with reporters at 2 p.m. today. To participate in the conference call,
credentialed members of the media should call the Department of Treasury
Communications Office at 517-335-2167 for call-in information or contact Terry
Stanton or Jeremy Sampson via e-mail
(stantont@michigan.gov orsampsonj@michigan.gov).
For more information about Public Act 436 of 2012, the Local Financial Stability and
Choice Act, visit the Local Government Fiscal Health page on the Department of
Treasurys web site at www.michigan.gov/treasury.

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