Detroit Consent Agreement: Mayor Wants Vote, City Council Wants Questions Answered

Council Delays Vote On Consent Agreement

This story has been updated.

Deputy Mayor Kirk Lewis plans to introduce a resolution to Detroit City Council Tuesday morning that would call for the body to approve a financial consent agreement with the state.

Proponents say the agreement would help the city stave off a state-appointed emergency manager and begin the proces of righting Detroit's finances. The city could run out of cash in May and faces a projected $270 million deficit for this fiscal year.

But opponents, including several Council members, say the proposed consent agreement is just emergency management in disguise. It would create a nine-member financial advisory board with power to approve budgets and contracts and instate a chief financial officer and project management director with final say-so on spending and city operations.

(SCROLL DOWN FOR UPDATES)

Another wrench was thrown into the process Monday, when an Ingham County judge prevented Detroit's financial review team from meeting to approve the consent agreement. The document must be signed by the review team, City Council, Mayor Dave Bing and Gov. Rick Snyder. Judge Joyce Draganchuk found the review team could not meet because its 90-day term had expired.

On March 26, in its final meeting, the review team found Detroit to be in a state of "severe financial emergency" but had not yet entered into a consent agreement. The team did not, however, recommend the governor appoint an emergency manager.

Whether the team can now enter into an agreement with the city remains for the courts to decide. The state plans to appeal Draganchuk's ruling.

Still, the mayor's office wants action on the consent agreement from Council Tuesday. Gov. Rick Snyder said Thursday is a final deadline for any agreement, otherwise he could choose to appoint an emergency manager to take control of Detroit.

"We're comfortable with it as written," Lewis said of the agreement during a special Council session Monday. But whether there are enough votes for it to pass the body remains unclear. At least three Council members -- JoAnn Watson, Kwame Kenyatta and Brenda Jones -- oppose a consent agreement in any form. Council Members Saunteel Jenkins and Andre Spivey and President Charles Pugh said they would like an agreement to include real cash assistance from the state.

"I think the state should be bringing money," Jenkins said Monday.

State officials have made no guarantees, citing the need for legislative action on any appropriations for cash assistance.

Detroit residents who turned up at Monday's meeting spoke passionately against the consent agreement, urging Council members to stand their ground and not "sell out" the city. Many pointed to recent court actions and the likely success of a petition drive to suspend Public Act 4, the emergency manager law, as reasons to forego approving the consent agreement.

As written, the document would remain in effect even if Public Act 4 were suspended or repealed -- a fact that led Council Member JoAnn Watson to call it an end-run on democracy.

UPDATE: 5:45 p.m. -- City Council chose not to vote on the consent agreement Tuesday, with President Charles Pugh saying the body would schedule a special session to continue discussion Wednesday afternoon.

Some Council members suggested the body do nothing until court cases surrounding the Detroit review team and the city's ability to enter into a consent agreement were resolved.

But the governor has set a Thursday deadline for a consent agreement to be approved, and Pugh said he was "not good at playing chicken."

"I don't want to take the risk and then we go into an emergency manager or Chapter 9 bankruptcy," he told reporters following the meeting. Pugh said he was disappointed the draft consent agreement did not include direct cash assistance from the state, but said he would support it anyway to avoid an emergency manager.

"Whatever we need to do I'm willing to do," he said.

But whether there's a majority vote on the Council to approve the ageement remains unclear. Council Member Andre Spivey made it clear Tuesday he would vote no on the agreement, and Council Members Watson, Kenyatta and Jones were also opposed.

Pugh and Pro Tem Gary Brown appear the only sure yes votes, with likely approval from Ken Cockrel, Jr., though he raised some objections to the document's language during Tuesday's session.

Detroit City Council adjourned discussion of the consent agreement until a special session Wednesday. Check back here for updates.

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