Welcome to the Emergency Financial Manager's Page
On March 19, 2009, The Local Emergency Financial Assistance Loan Board appointed an Emergency Financial Manager for the City of Pontiac. The Board is led by Robert Kleine, State Treasurer.
Please use these pages to find out more about the Emergency Financial Manager process and to find out what is being done to secure the financial stability of our city.
Go to the Blog page to get better informed of what is happening in city government. Do you have a concern that you would like addressed? Click on the Blog button on the left to submit your e-mail. Selected questions and responses will be posted weekly.
Do you have an idea for making Pontiac a better place to live and work? Click on the Suggestion Box on the left to submit your ideas.
AGENDA ITEMS FOR SPECIAL COUNCIL MEETING There will be a special council meeting on Wednesday, August 18, 2010 at 4:00 p.m. to discuss the City's current financial condition and modifications to the FY2010-2011 Budget. Click here to download the EFM's items for the Council meeting |
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Act No. 181 as Required by the State of Michigan In accordance with Act No. 181 of Public Acts of 2009, the City of Pontiac has filed the following report with the appropriate representatives of the State of Michigan. |
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Pontiac Police Officers and Supervisors A unit citation has been given to members of the Pontiac Police Department for their response to a dangerous situation on May 27, 2010. |
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Silverdome Rulings Judge Edward Sosnick issued the following very important rulings on May 27, 2010 in the cases of Dr. Mildred Mason, et. al. v City of Pontiac, et. al. and Silver Stallion Development Corporation v City of Pontiac, et. al. Click here to view the ruling in the case of Dr. Mildred Mason, et. al. |
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Pontiac Turns Sale of Recently Found Stock into Through a fresh examination of the city’s insurance files, it was determined that the city owned more than 43,000 shares of Principal Financial Group stock. Those stocks were sold at $29.17 per share, generating a net return of $1.26 million. Click here to read the press release with details of how the stock was found. |
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New Management Structure for Municipal Golf The City of Pontiac has selected Torre Golf Management to manage its municipal golf course. The golf course had been operating at a loss of over $250,000 per year, which had to be subsidized by the City's General Fund. TGM's contract eliminates the need for any subsidy from the City and, instead, provides a guaranteed payment to the City based on the gross operating revenue. Click here to read the press release with additional details |
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FITCH UPGRADES PONTIAC GENERAL OBLIGATION, TAX INCREMENT AND WATER & SEWER BONDS Credit Rating Agency Assigns Stable Outlook Fitch Ratings has upgraded $8 million in City of Pontiac Building Authority bonds and approximately $29 million in Tax Increment Financing Authority (TIFA) Development Area bonds from CCC to B. Fitch also removed Pontiac’s outlook from Rating Watch-Negative and assigned a Stable Outlook. On separate bond issues, for $2.4 million in water revenue bonds and $3.5 million in sewer revenue bonds, Fitch again upgraded the rating, from B- to B, and assigned a Stable Outlook, removing their previous negative outlook. “This is outstanding news for the City of Pontiac and offers a clear indication that we are moving the city’s finances in the right direction,” said Emergency Financial Manager Fred Leeb. “While there is plenty of hard work and many difficult decisions ahead, Wall Street recognizes what we have accomplished here in Pontiac over the last year. In announcing the upgrades for Pontiac, Fitch noted that “The upgrade and Stable Outlook reflect the oversight of the state-appointed emergency financial manager (EFM) and the resulting improvement in financial management in addition to the successful implementation of personnel cost savings. The quality of disclosure and the responsiveness of the management team have improved markedly with the EFM and gains have been made in adjusting spending to operating revenues.” Fitch noted that Pontiac’s General Fund remains weak, though the city’s accumulated deficit declined in fiscal year 2009 and is expected to improve again this year. According to Fitch, “The city has made headway with significant spending cuts, including long needed adjustments to personnel expenditures. More cuts will likely be necessary to improve its financial position.” In addition, “Fitch believes that EFM and thus state oversight is a key credit consideration for Pontiac, at least until the city's financial position has become sustainable and fiscal integrity restored.” Click here to read Fitch Ratings' review of the General Obligation (GO) and TIFA bond upgrade Click here to read Fitch Ratings' review of the Water and Sewer bond upgrade |
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City of Pontiac Written Financial Plan On April 16, 2010, we completed a first draft of the Amended Written Financial Plan for the City of Pontiac. We view this draft as merely a first step because we would like the public's input and comments to help improve the Plan. Please provide your input and comments by May 5th so that they can be reviewed and analyzed before the Plan is finalized by the end of May. As you know, the City is operating under extremely difficult economic conditions and any good ideas that you have will be most welcome. Please click on the Suggestion Box to be able to send us an email with your input. Alternatively, please send a letter to EFM, Pontiac City Hall, 47450 Woodward Ave., Pontiac, MI 48342. Click here to download the amended Written Financial Plan for Fiscal Year 2009/2010. |
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EFM WORKS TO KEEP MAYOR AND COUNCIL INFORMED During recent City Council meetings, I have discussed my efforts to work collaboratively with both the Mayor and Council members. I want to be certain that residents of As Emergency Financial Manager for Thank you very much, |
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| EFM 13 POINT CHECKLIST TOWARD FINANCIAL SOLVENCY The collective goal of the EFM, the City Council and the Mayor is to restore Pontiac to financial solvency and return governance to local control as quickly as possible. Before that can occur, there is a 13-point checklist that must be completed and in place for six consecutive months. This same checklist is used by Emergency Financial Managers who have been appointed in other communities. |
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CITY RECOVERS APPROXIMATELY $2,250,000 FROM Through the diligent work of the counsel and representatives of the City of Pontiac, over $2 million was recovered from the bankruptcy of the North Oakland Medical Center. Click here to read the press release. |
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Emergency Financial Manager's Updates Please read the below documents to find out more about what is happening in the City of Pontiac to turn around our economic condition. |
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Town Hall Meeting - Click here to read the agenda for the Town Hall Meeting that was held on Wednesday, November 18th. |
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*City Employees gathered to help beautify City Hall. Click on "View City Hall Cleanup" to view the video. If you wish to save the video file, right-click the download button and choose "save target as" *To view the Emergency Finance Manager's Community Forum, click on "View Community Forum." If you wish to save the video file, right-click the download button and choose "save target as"
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Staff Accomplishments - 
Water & Sewer Rate Increase - 
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