Detroit rejects condition for cash infusion

[WestVirginiaRebel]

Yahoo News:

DETROIT (Reuters) - Detroit will not get a much-needed $10 million after the city council rejected on Tuesday a contract to hire a law firm that was part of a deal to help the city overhaul its finances.

The state of Michigan and its biggest city, Detroit, announced a deal last week that includes several milestones the city must achieve in the next month to receive the $10 million by Tuesday and another $20 million by December 14.

In a voice vote, the city council rejected a contract for the law firm of Miller, Canfield, Paddock & Stone to provide legal advice and to handle litigation related to implementing a financial stability agreement designed to overhaul city finances.

The rejection "means the city will not receive the first $10 million scheduled for release today," said Mayor Dave Bing in a statement issued right after the vote.

Mayor Bing said the rejection of the contract will make it more difficult for Detroit to maintain positive cash flow.

"It will be more difficult for the City to maintain its liquidity until the receipt of property tax revenues beginning in January. Today's vote is one more example of how City Council has stalled our efforts to bring financial stability to the City of Detroit," the mayor said in the statement.

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They want to stay broke on their own terms...