State Oversight Board Abolished, Full Local Control Re-Established

LANSING, Mich. – Michigan Treasurer Nick Khouri today announced the city of Hamtramck has been released from receivership under the Local Financial Stability and Choice Act and dissolved the Hamtramck Receivership Transition Advisory Board (RTAB).

The state Treasury Department’s actions follow a recommendation to terminate receivership by members of the Hamtramck RTAB. Effective immediately, city leadership will regain full local control and manage all internal operations and finances without state oversight.

“Today marks an important achievement for Hamtramck residents, the city and all who have contributed to moving the city back to a path of fiscal stability,” Khouri said. “I am pleased to say the city is released from receivership.”

Since the appointment of the RTAB in 2014, the city has increased operational efficiencies and improved its financial stability. The mayor and city council are experienced officials and have appointed an acting city manager, who has provided stable and solid administrative leadership.

The new city controller is practicing sound financial management and improving the city’s internal financial management policies and practices. The city’s 2017 audit was submitted timely and without issue, showing a general fund balance of $6.5 million at the end of the 2017 fiscal year.

“Hamtramck is in a great position for solid growth in the future,” Hamtramck Mayor Karen Majewski said. “I am pleased with the progress the city has made and ready to move forward.”

In February 2013, the state Treasury Department received a request from the city of Hamtramck to conduct a preliminary review of its finances to determine whether a serious financial emergency existed. In June 2013, Gov. Rick Snyder informed the city a local financial emergency existed based upon a recommendation from the financial review team.

An emergency manager was present from July 2013 to December 2014, when the financial emergency was resolved and the Hamtramck RTAB was appointed to oversee the city’s transition back to local control.

Over the last two years, the cities of Allen Park, Benton Harbor, Ecorse, Lincoln Park and Pontiac have been released from receivership and had their RTABs dissolved.

The city of Flint is the only municipality under state oversight through an RTAB. Recently, the city of Flint’s mayor and city council were given more authority with the abolishment of the final emergency manager order, further transitioning the community back to full, local control.