Is Hamtramck On Track?

The Local Emergency Financial Assistance Loan Board recommended last week that Hamtramck’s financial emergency declaration be revoked.

The board said that the city has met the conditions necessary for the Michigan treasurer’s office to revoke the declaration. Hamtramck’s latest audit report is expected to show a general fund surplus. Once that is submitted, the department will ask Gov. Jennifer Granholm to lift the financial emergency status.

The city is expected to release its annual financial audit report within a few weeks, showing that it ended 2006 with a modest budget surplus.

“This has been a lengthy, but very important process,” state Treasurer Robert Kleine said in a prepared statement. “The residents of Hamtramck should be very pleased, in fact, very proud, that their elected representatives may soon be in a position to assume full control of the city’s finances and operations.”

The city has been under state oversight since 2000. In February, the former fiscal manager, Louis Schimmel, resigned. Prior to that, the Treasury Department completed a review to determine if the fiscal emergency should remain.“Through that process, the city’s administration demonstrated that not only are the city’s finances balanced, but knowledgeable financial management and sound financial practices have been put in place,” according to the treasurer statement. City Council and mayor approved a budget that would establish a budget stabilization fund.“When combined with new economic development activity occurring in the city, Hamtramck appears to have a bright future,” Kleine said.Two other cities in Michigan remain in fiscal emergency status: Highland Park and Flint. Highland Park’s fiscal manager was fired and replaced, while Flint’s quit and has not been replaced.

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