Allen Park officials last week sent a letter to Michigan Treasurer Andy Dillon asking the state to launch a preliminary review of the city’s finances. The first step that could lead to a state takeover.
The City Council voted 5 to 2 to send the letter, with supporters saying they were uncertain if the city’s plan to stabilize its finances would materialize.
Allen Park in May will ask voters to consider a property tax hike that would allow it to continue to make debt service payments on a failed economic development project that has been draining a weak general fund. Officials are also negotiating with unions for concessions.
“Please consider this request as a result of the city’s anticipated financial conditions for fiscal year 2012-2013,” city administrator John Zech wrote in the letter. “There is no plan to resolve the expected significant recurring operating and cumulative deficit.”