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Detroit bankruptcy ends -- Emergency Manager Kevyn Orr leaving city
Detroit emerging from bankruptcy and financial emergency.
Detroit Mayor Mike Duggan, Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder speak on the end of Detroit's bankruptcy.
Detroit Mayor Mike Duggan, Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder speak on the end of Detroit's bankruptcy.
DETROIT (WXYZ) - Detroit has now emerged from bankruptcy. Governor Rick Snyder was joined by Mayor Mike Duggan and Emergency Manager Kevyn Orr to address Detroit's exit from the financial emergency.
Kevyn Orr has resigned and he will soon be leaving town.
"It's time for me to step back and return the city to the regular order," said Orr.
Governor Snyder thanked Orr for his help in getting the city back on financial track, calling it a "historic day" for the city.
"You'll always be considered an honorary Michigander," Governor Snyder told Orr.
“Detroit stands taller today,” Snyder said. “Our state’s largest city has moved through this historic bankruptcy to move toward a brighter future. This was difficult work that required bold leadership andsacrifices from many people, and there is more to do. But we also have watched through this process the people of our state draw closer and stand together in support of Detroit, recognizing that all of Michigan is better when the city thrives.”
Detroit Mayor Mike Duggan also spoke during the news conference. "It's a good day for the city... a necessary day," Duggan said.
He says now is the time to put talk of bankruptcy and financial emergency behind us.
Kevyn Orr's term as EM will officially end on Thursday, December 11 at 12:01 a.m.
Orr says Detroit's long term debt was $18 billion when he was appointed by Governor Rick Snyder to be Emergency Manager and the daily operating fund deficit was $300 million.
In the summer of 2013, paychecks for some city employees were bouncing, and Orr stopped making long-term debt payments.
Detroit's bankruptcy was filed in July of 2013.
According to Orr, the city started out 2014 with a deficit of $58 million, but will have a fund surplus of $100 million by the end of the year.
Detroit is under the control of the State Financial Review Commission for the next 13 years that will make sure Detroit does not end up in another financial crisis.
The city is also required to carry a 5-percent surplus in its operating budget.