LANSING, MI – State Treasurer Nick Khouri on Wednesday, June 8th, 2016, announced that the City of Inkster is being released from the terms of its Consent Agreement.
After a review of the City in May Treasury staff evaluated the progress of the City of Inkster which lead to the determination that the City has complied with the agreement and therefore should be released, prior to the end of its fiscal year which is June 30, 2016.
The City of Inkster met all three conditions for release from a Consent Agreement:
- The financial statements indicate, on the basis of generally accepted accounting principles, that no fund maintained by the city is in a deficit condition.
- The city has eliminated any structural imbalance of recurring operating expenditures in excess of recurring operating revenues.
- The State Treasurer certifies to the Governor that no condition exists within the city and that no action has been taken, or is being contemplated, by city officials that would initiate, or cause the initiation of a preliminary review.
“The residents of Inkster should be proud of the significant progress that the city has made while operating within the best practices established by this agreement,” said State Treasurer Nick Khouri. “Inkster has made great strides to return to stable financial footing.”
In October of 2011, the Department of Treasury initiated a preliminary review of the finances of the City of Inkster. Based upon these findings, a review team was appointed and a final report was issued in March 2012. The Financial Review Team concluded that a condition of severe financial stress existed within the City of Inkster and implemented a Consent Agreement.
“The residents of the city of Inkster are ecstatic to be released from the consent agreement with the state of Michigan,” said Mayor Byron Nolen. “This release reflects the hard work and determination of the city’s residents, elected officials and administration to pay off the city’s debt and attain reasonable fund balance levels in just four years, one year ahead of our five year repayment plan. The future for the city of Inkster is bright.”
The Department of Treasury anticipates a continued relationship with the city and expects to meet periodically with city officials. The purpose of these meetings will be to further support the city as it continues to improve its finances, operations, and quality of life for its residents.