Foster McCollum White & Associates
Fiscal Restructuring PlanJune 4, 20121
FMW 17 point draft plan to re-
align Detroit’s fiscal and operational structure
Understand and accept the real debt load and deficit situation for the City of Detroit.Detroit has a long term principal and interest debt bubble. The principal debt andrelationship for the debt is as follows:
General Obligation Bonds - $1,034,505,000.b.
Revenue Anticipation bonds - $5,190,891,968.c.
Pension Obligation Certificates - $1,468,799,999.d.
Other principal debt - $363,928,233.e.
Post Employment benefits - $4,982,355,243.f.
Pension Liability - $615,701,032.g.
Downtown Development Authority loan to City - $33,600,000.h.
State of Michigan Drinking Water Revolving Loan Fund (Sewage Department) -$2,028,744.i.
State of Michigan Drinking Water Revolving Loan Fund (Water Department) -$45,512,406. j.
Municipal Parking Department Bonds - $25,800,000.k.
Hedging Derivatives extra
D-DOT Bonds - $2,406,855.m.
Unlimited General Obligation Bonds (Police & Fire HQ) - $100,000,000.n.
2010 fiscal year interdepartmental loan fund balance (loans from department todepartment to cover shortfalls in operating expenses) - $447,000,000.o.
2011 fiscal year unaudited interdepartmental loan fund balance (loans from department todepartment to cover shortfalls in operating expenses) - $334,000,000.p.
Water fund bond commitment shortfall for 2010 fiscal year - $6,446,061.q.
Sewage fund bond commitment shortfall for 2010 fiscal year - $36,348,689.Total Detroit Obligation principal = $15,830,331,478The interest debt and relationship for the interest is as follows:a.
General Obligation Bond interest - $467,740,950.b.
Water Fund Revenue Anticipation Bond interest - $1,943,976,879.c.
Sewage Fund Revenue Anticipation Bond interest - $2,075,424,762.d.
Other principal debt interest - $39,400,000.e.
D-DOT bond interest - $1,626,495.f.
Pension Obligation Certificates Government Interest - $482,844,364.g.
Pension Obligation Certificates Water Fund Interest - $32,157,154.h.
Pension Obligation Certificates Sewage Fund Interest - $36,439,627.i.
Pension Obligation Certificates D-DOT Interest - $42,521,802.
Total Detroit Obligation interest = $5,122,132,033Total Detroit Obligation principal & interest = $20,952,463,511Total Detroit Obligation principal & interest per 2010 citizen population (713,077 persons) = $29,383.17per person.Total Detroit Obligation principal & interest per 2012-2013 proposed budget revenue ratio($2,538,750,778) = $8.25 debt obligation to $1 of proposed revenue.