The city of Detroit, Michigan, one of America's leading manufacturing centers, suffered the brunt of the impact caused by the 2008 financial crisis. After filing for bankruptcy in July 2013, however, the city has made a remarkable financial come back.
The Detroit News reports that with the release of the city's latest audit on May 31, the city has a surplus of nearly $63 Million and marks the second straight time that Detroit has ended the year with a balanced budget. That surplus is about $22 million higher than originally forecasted.
According to the Michigan Chronicle, Detroit Mayor Mike Duggan spoke publicly about the significance of the latest audit. "This audit confirms that the administration is making good on its promise to manage Detroit's finances responsibly. With deficit-free budgets two years in a row, we have put the city on the path to exit Financial Review Commission oversight."
The higher surplus was attributed to improved financial controls, revenues that consistently beat projections, and cost saving measures. With a better long-term financial forecast, and a surplus that will allow the city to reinvest in neighborhood, safety, transportation and recreation improvements, Detroit aims to significantly upgrade quality of life for their residents.
The two consecutive years of deficit-free budgets are also necessary for Detroit to exit the Financial Review Commission oversight. The review commission's terms from the city's municipal bankruptcy protection in 2014 require Detroit to have three consecutive years without a deficit free budget before it can exit.
John W. Hill, the city's Chief Financial Officer, also spoke positively about Detroit's good financial news. "The audit shows that the city has performed better than budget at the same time we have made investments that will improve our financial future… I want to thank the leadership and staff of the Office of the Chief Financial Officer for all of their hard work and dedication, as well as department directors for operating their budgets in a fiscally responsible manner."
"We are operating in a very fiscally responsible way that we believe will have a lot of positive implications on the future," Hill told The Detroit News as well.
Detroit is expecting a $51 million surplus for the 2017 fiscal year, which closes June 30.