MI - Official says Highland Park can be saved

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;HIGHLAND PARK -- The city is not only broke, it's broker.
   Ramona Pearson picked by Gov. John Engler last June to take over Highland Park's finances, told a residents meeting the city's debt is nearly $20 million, not the $11 million as previously reported.
   But the grim news was brightened somewhat when Henderson said she disputes claims that Highland Park cannot be saved.
   "You are a going concern in that you have revenues," Pearson said.
   The manager is being given one hour Thursday to present Highland Park's options to the state's emergency loan board, which will meet in Lansing.
   The Local Emergency Financial Assistance Loan Board is part of the state Treasury Department. Its three members are State Treasurer Doug Roberts; state Budget Director Donald Gilmer; and Kathleen Wilber, director of consumer and industrial services. The board will have 60 days to recommend a course of action.
   Pearson made it clear to the Highland Park crowd that she does not believe Highland Park should be dissolved, changed into a township or annexed by Detroit. She said Wayne County is to demolish 200-300 abandoned homes in the city, renovate others and that five housing developments in the city are either ongoing or planned, including a mixed use development at the Woodward site of a Sears store demolished last winter.
   Pearson distributed figures compiled by the accounting firm of Plante & Moran LLC that show outstanding city debts that include $7 million in city income tax refunds due DaimlerChrysler AG, $5 million in unpaid city employee benefit plan contributions and a $1 million settlement awarded to the family of a Highland Park women killed by two pit bull terriers.
   The water and sewer fund -- used to sell water to city residents and pay Detroit for processing sewage -- owes the general fund $4.25 million. Highland Park still owns and operates its own reservoir and water treatment plant, but it was constructed to serve 80,000 daily customers and it is losing $150,000 a month.
   Some $3 million in unpaid water bills have been added to city tax rolls. That makes properties in Highland Park harder to sell because those water bills would have to be paid up by buyers.
   Pearson said she has paid down the city's debt by $1 million since last June. It currently costs Highland Park $850,000 a year to service loans it already has out. The certified public accountant, who has a practice in Detroit, said she backs a change in the city Charter to allow a city manager form of government, instead of Highland Park's strong mayor government.

Detroit News

-- Anonymous, April 16, 2002


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