Emergency manager talks to South Side residents

Details

By Kate Cole

Tuesday, February 21, 2012

Hits: 471

Emergency Financial Manager Mike Brown talked to members of the South Side Business and Residents Association Feb. 21 about what he has done since he took over Flint's government 45 days ago.

Brown said his top priorities were reducing expenses, providing private sector opportunities and generating more revenue.

"We are facing a $12 million deficit at the end of our fiscal year this June," Brown told the group. "When a municipality carries a deficit budget for two years, that triggers a emergency financial manager intervention."

Brown said that 80 percent of the budget is personal costs — most of them under union contract. Pension benefits are $800,000 a year — an unsustainable number. He said his team would be working with employees and retirees to manage health care costs. A simple change to generic drugs and co-pays has already saved the city $1 million.

"I will be submitting a deficit elimination plan along with a balanced 2013 budget to the state. We've made a list of a dozen areas where we can share services with other governmental units — something the state requires in order to receive revenue sharing," Brown continued.

Brown related that the city is no longer receiving the income tax revenue it did when GM had 80,000 workers here.

"Now GM employs about 6,000," Brown said. "Our assessor, Bill Fowler, estimates a 25 percentage decrease in property values that will affect our property tax revenue."

Addressing public safety, Brown said the state police have been assisting the Flint Police Department for the last 18 months.

"What we are seeing is a broken system countywide," Brown said. "All our officers can do is issue an appearance ticket. Criminals are laughing at us."

He is advocating a new "lock-up" system that may be privatized. He's also looking at grants to cover the cost of additional police and firefighters. A $1.3 million grant for community policing has already been secured.

Brown has also gotten a net reduction in the general fund of more than $600,000 from the elimination of the Ombudsman Office and Civil Service Commission and secured a federal grant for $800,000 for energy reduction.

The recent hikes in water charges were discussed.

Brown said his team is looking at several options — continuing to use water from Detroit, using the Flint River, joining the Karogondi Water Authority to pipe Lake Huron water here or a combination for a short-term and long-term solution.

"Our current water treatment plant needs about $60 million in updates," Brown said.

He said the water infrastructure has a leakage of about 30 percent. The sewer system on the north and south sides of the city have been the subject of numerous lawsuits.

"This is a highly controversial issue," Brown said. "I won't make that choice alone. We will have a town hall meeting to address our options."

Brown also advocates a water audit although he admits the funds to pay for the audit are not available yet.

Two area golf courses are near to reopening under private management, Brown said. Agreements with nonprofit groups to reopen Mott Park and Pierce Golf Courses should be coming shortly. Reopening these courses helps to improve property values in the city.

Brown admitted that the three senior centers in Flint are suffering from a lack of programming and poor management. He is advocating a nonprofit to step in to keep the centers open.

During the audience questioning session, David Caswell asked Brown to keep the South Side Task Force and its seven officers on the street after the Department of Justice grant ends in September 2012. Brown agreed to look into extending the grant.

Brown applauded the new business, Diplomat Pharmacy, for its work in the community and said that his team is also looking for businesses to take over Buick City and the old Delphi site.

"Right now the Genesee Regional Chamber of Commerce is charged with doing economic redevelopment," Brown said.

Members asked how they could become involved in the city's master planning efforts. Brown said with a new city planner coming on board there will be numerous opportunities for involvement.

"We can't cut our way out of this situation," Brown said.

Brown attended St. Michael's School, Western Michigan University and earned his master's degree in international studies at the University of Stockholm in Sweden.

Brown, as acting city administrator, became temporary Flint mayor Feb. 15, 2009, after the resignation of Mayor Don Williamson. Brown was appointed by Gov. Rick Snyder as emergency financial manager and took office Dec. 1 under Michigan's Law Public Act. 4.

• < Prev
• Next >