Source: Bill Proctor / WXYZ.com
DETROIT – The City of Detroit is standing at the edge of a financial cliff. It’s running out of cash and soon won’t make payroll — that’s what a secret report says.
It’s 22 pages of terror, said one former elected official who has deep knowledge of Detroit’s finances.
The problem is that the city has limited ability to borrow money and that means the obvious question is this: Does all this mean Detroit will soon get an Emergency Manager?
Detroit paid the consulting & accounting firm Ernst and Young $1.7 million for this first quarter cash reporting package, the document that led to secret meetings between the mayor and council, and real concerns that payless paydays are on the horizon.
“In essence, they will not be able to make payroll in the best case scenario by June 30, 2012,” says George Smith, a CPA 7 Action News asked to review the audit report. Smith says things are moving quickly towards financial disaster.
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