City of Detroit "Tapped Out"

By Dave Leval

City of Detroit "Tapped Out"

June 14, 2013

DETROIT, MI (My TV20 News at 10) --- "We're tapped out."

That's the dire warning from Detroit's Emergency Manager Kevyn Orr following Friday's meeting with creditors at Detroit Metro Airport.

Orr also ordered a moratorium on debt payments for all unsecured funded debt.

Legacy costs are eating up most of Detroit's revenue.

They take up 40% of the city's finances, which is more than twice the amount of other cities.

Orr wants to make major changes to pension and health care benefits to help save money.

He will discuss those plans with unions and pension leaders next Thursday.

Orr wants to spend $1.25 billion over the next 10 years on police and fire, and $500 million to fight blight.

Orr told reporters after the meeting there’s still a 50-50 chance Detroit will file for a municipal bankruptcy.

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