Detroit Mayoral candidate Lisa L. Howze presents solid proof of why the city of Detroit does not need an emergency manager. Joined by CPA Randy Lane, Howze shows how the state of Michigan’s review team amplified Detroit’s financial obligations by nearly 13 billion dollars. This amount principally includes 6 billion dollars in water and sewage revenue bonds; 5 billion dollars in other post-employment benefit costs accelerated by 25 years; and, 1.5 billion dollars in pension obligation certificates that have an offsetting asset for virtually the same amount.
After a three-month review of the city’s financial reports, Howze and Lane presented how the city’s audited financial statements show long-term financial obligations at 2.1 billion dollars. “Debt is not something we fear. Debt is something we manage. The water and sewage revenue bonds are covered by water rate payers and are not at-risk of default,” said Howze during today’s press conference. Lane added that, “Revenues in the water department reached a record 800 million dollars in fiscal year 2012.”