Tagged: Detroit City Council

Detroit Mayor Dave Bing and the City Council are sitting down this morning to discuss keeping the city afloat financially.

Bing and Detroit’s Chief Financial Officer have warned the city might run out of money by the end of this week.

When Detroit signed a consent agreement with the state more than two months ago, it was supposed to keep the city out of just this position.

But the city’s top lawyer, Krystal Crittendon, is challenging the deal’s validity in court.

She has support from several City Council members—and at one point, got encouragement from Bing.

Detroit Mayor Dave Bing and his Chief Financial Officer, Jack Martin, warn the city could go broke as soon as next week.

That’s because Detroit’s top lawyer, Kyrstal Crittendon, filed a lawsuit challenging the validity of the city’s consent agreement with the state.

Crittendon argues the agreement is “void and unenforceable” because the state owes the city money—and it’s illegal to enter into a contract with a debtor.

Two months ago, Detroit City Council agreed, at the last possible moment, to enter into a consent agreement with the state.

The city was fast running out of cash, and was facing a situation where the governor would virtually have been forced to appoint an emergency manager to run the city.

Detroit’s top lawyer is going to court to challenge the city’s consent agreement with the state. But she doesn’t have the full support of Mayor Dave Bing, or some Detroit City Council members.

Corporation counsel Krystal Crittendon wrote a letter to state officials weeks ago.