Detroit Mayor Dave Bing: 'We won't give up on our city'

Detroit ? Mayor Dave Bing in his State of the City speech on Wednesday reiterated the city is facing a financial emergency, but insisted his administration has made progress in fixing its cash flow crisis.

The mayor did not directly address the looming threat of an emergency financial manager, other than to say the city has avoided one so far and will continue to work urgently to stave off insolvency. He outlined the steps the city has taken to restructure itself in the face of a shrinking population and dwindling tax base.

"Despite the naysayers' predictions, there have not been any payless paydays," Bing said. "No emergency manager to date. And no declaration of bankruptcy for the City of Detroit."

Bing painted a picture of hope for the state's largest city and told a few hundred people at the Detroit School of Arts that he's not giving up just yet. A packed house is expected for the 30-minute speech inside the auditorium of the High School for the Arts in midtown.

"Despite our much-publicized financial issues, there is progress to report in Detroit," Bing said. "The picture is not all 'gloom and doom'. Every day there are more signs of hope and possibilities.

"Like many Detroiters, I too am a fighter," he said. "We can't - and won't give up on our city."

Pressure is continuing to mount on city leaders to work through an ongoing cash crisis. The city, which is under a consent agreement, is working to reshape its finances and operations to avoid insolvency. Officials said this week a review team that's looking into the city's issues is set to finish this weekend

Detroit is facing an estimated accumulated deficit of nearly $326 million. It borrowed $137 million that is now being used to cover city expenses late last year.

In his speech, Bing said the city's financial woes stem in part from a reduction in state revenue-sharing over the past decade. He pointed to ways the city is seeking to generate savings and address its revenue shortfall, including:

Reducing city spending from $1.4 billion from fiscal year 2009 to a projected $1.1 billion for fiscal 2013.

Reducing the city workforce from 13,420 to 9,696, and cutting payroll and benefit costs.

Outsourcing three city departments to outside organizations.

To increase operating efficiency, the city also has created a public lighting authority to address lighting problems, improved public transportation and outsourced payroll and benefits functions, he said.

The first-term mayor also touted his vision for Detroit's future. The Detroit Strategic Framework, the city's 50-year vision for the future, was unveiled in December.

The plan, which received $150 million from the Kresge Foundation, seeks to regenerate and transform the city through economic development, neighborhood reinvestment and infrastructure improvements. The goal is to help spur Detroit back to a level of national prominence over a period of five decades.

The plan envisions stable, revitalized neighborhoods in which vacant land is put to creative use and residents have incentives to move to more populated areas. For decades, Detroit has been plagued by population losses, largely driven by concerns about crime.

"The blueprint for the city will live for years to come," Bing said.

Still, Bing said the city cannot turn itself around without doing something about escalating crime. The city is in the midst of a massive restructuring of the department, which includes the elimination of several units. They include the violent crimes task force, tactical mobile unit and crime scene analysis unit.

Officers are to be redeployed to street patrols to bolster the force, whose uniformed ranks have decreased to 2,000 from about 3,000 in 2000. Last year, Detroit suffered through one of the most violent years in recent memory. Homicides increased 12 percent in 2012 to 386. That's a rate of 54.1 homicides per 100,000 residents. Data shows 88 percent of the homicides were committed in residential areas.

"We are all fighting the same battle - trying to reduce crime throughout our city," Bing said. "As I have said repeatedly, the fight against crime must involve everyone. Our elected officials. Our churches. Our schools. Our community groups. Our businesses. We all have a role and stake in the outcome."

Bing also announced a partnership with Pulte Homes to create a private non-profit group called the Detroit Blight Authority, which will work with community stakeholders such as the Kresge Foundation and DTE Energy to fight neighborhood blight. The authority's pilot project, which was first reported by The Detroit News last week, includes demolition of a 10-block area on Detroit's east side near Eastern Market.

Bing said he plans to reach his goal of tearing down 10,000 abandoned structures this year. The city has knocked down nearly 6,700 vacant structures throughout Detroit to date, he said.

"While we can proudly point to all of these successes, my job is not done," Bing said.

dnichols@detnews.com

(313) 222-2072

Source: http://www.detroitnews.com/article/20130213/METRO01/302130373/1408/LOCAL

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