Michigan Gov. Jennifer Granholm said this week she has appointed a team to review the finances of River Rouge, a move that could lead to an eventual declaration of a state of fiscal emergency.

The state initially reviewed the city’s finances in May, 2009 after determining that the city had imposed two pension-related judgment levies without the approval of the City Council, according to the governor’s office.

Under state law, the imposition of a judgment levy triggers a financial review unless it has been approved by the local government’s governing body.

The state review team has 60 days to report its findings to the governor.

State law requires the team to declare one of three findings: a serious financial problem does not exist; a serious problem does exist and a consent plan to address it has been adopted; or a state of fiscal emergency exists because there is no plan to address the problem.

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