Michigan Gov. Rick Snyder last week appointed a seven-member review team to examine Inkster’s finances after a preliminary review found evidence of fiscal stress.
The appointment of the team advances the possibilities of a state takeover of Inkster and an emergency manager.
The Treasury Department began investigating the Detroit suburb’s finances in October and reported several problems, including chronic deficits.
“A key component of Public Act 4 is the state’s ability to identify potential financial problems before they reach a state of emergency,” Snyder said in a statement Friday.
“In this case, earlier and relevant financial data keyed the preliminary review, which found probable financial stress,” he said. “The panel appointed today will now conduct its review as quickly and efficiently as possible.”
Inkster, which has a population of 25,000, last week laid off 20% of its police force, and the police chief announced his resignation.
The review team includes deputy state treasurer Roger Fraser; Doug Ringler, director of the Office of Internal Audit Services in the Department of Technology, Management, and Budget; David Fischer, a principal with Rehmann, Robson and Co., an accounting and business firm; Deborah Owens, a member of Inkster’s Police and Fire Pension Board and a retired executive at Ford Motor Co.; Ypsilanti City Manager Edward Koryzno; Brom Stibitz, senior policy advisor at the Treasury; and Frederick Headen, director of the Treasury’s Local Government Services Bureau.
Officials announced the formal probe the same day they launched a preliminary one of Detroit.