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Published on 3/28/2014 in the Prospect News Distressed Debt Daily.

Detroit details $179 million in uses for quality-of-life financing

By Caroline Salls

Pittsburgh, March 28 - The City of Detroit outlined $179 million in possible uses for its proposed $120 million of "quality-of-life" finance in a March 28 filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

The city provided the funding priority breakdown in response to objections to the proposed financing.

The potential uses of the funding include the following:

• $36.2 million to be used by the police department for purchasing fleet vehicles, construction of new precincts and training facility, upgrades to IT systems, hiring to reach adequate levels of staffing and purchasing equipment;

• $35.6 million for residential blight removal;

• $28.5 million to the fire department for purchasing fleet vehicles and maintenance, repairs and maintenance to existing facilities, upgrades to the IT system and hiring to reach adequate levels of staffing;

• $25.4 million for the finance department for hiring to reach adequate levels of staffing, IT systems data back-up solutions and upgrades to IT systems;

• $24.8 million to the general services department for park upgrades and ground maintenance fleet replacement, city-wide facility improvements and repairs and hiring to reach adequate levels of staffing;

• $5.1 million to the department of health and wellness promotion for demolition of the Herman Kiefer Building;

• $4.5 million to the planning and development department for facility consolidation and hiring city planning and other labor resources;

• $3.4 million for training city employees;

• $2.7 million to the department of transportation for facility improvements and upgrades and costs associated with increased department services;

• $3.2 million to the recreation department for repair and maintenance of facilities and facility improvements;

• $1.6 million to the legal department for hiring;

• $800,000 to the elections department for deferred maintenance and improvements;

• $600,000 to human resources for hiring to reach adequate staffing levels;

• $500,000 for airport capital expenditures to hire employees to comply with applicable laws; and

• $6.1 million for multiple miscellaneous initiatives.

Detroit filed bankruptcy on July 18, 2013 under Chapter 9 case number 13-53846.


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