Detroit, review team reach deal to fix finances

April 4, 2012 - 7:08 PM

DETROIT (AP) — Detroit's City Council and a state-appointed review team have reached an agreement aimed at fixing Detroit's broken finances and avoiding the appointment of an emergency manager.

Mayor Dave Bing was expected to sign the deal approved by the council.

Under the agreement, the mayor's office and City Council retain authority over finances and the city budget. A nine-member appointed advisory board will monitor the finances and work with Bing on the city's fiscal restructuring.

Detroit faces a $200 million deficit and $13.2 billion in long-term structural debt.

Council recently approved the sale of $137 million in bonds to help solve Detroit's immediate cash flow issues.