What happened when Detroit declared bankruptcy?

What happened when Detroit declared bankruptcy?

Revenue fell due to Detroit’s declining population, which reduced the property and income tax base. Rising foreclosures and unemployment following the Great Recession reduced property values and further reduced the property and income tax base.

What happened to Detroit pensions after bankruptcy?

Detroit’s two pension funds received the state’s grand bargain bankruptcy contribution of $194.8 million in early 2015. Under the bankruptcy agreement, the city froze two existing pension plans, created two new plans for current and future workers, and established new governance structures to oversee the pensions.

How much debt does Detroit have?

Lastly, Detroit had approximately $1.98 billion of total bonded debt in 2020. About 76 percent of that debt was made up of tax supported unlimited tax and limited tax general obligation bonds, while 23 percent of the city’s total obligations were revenue bond debts and debts from other projects.

What happened to pensions in Detroit?

The city’s bankruptcy Plan of Adjustment gave Detroit a decade-long reprieve from making regular pension fund payments, while cutting retirees’ pension and health care benefits and transferring current workers to a less generous retirement plan.

Is Detroit having a resurgence?

Many real estate investors are surprised to learn that Detroit has been experiencing a renaissance over the last few years. New housing and businesses in the city’s Midtown, Downtown, and New District areas are attracting residents and visitors.

Is the city of Detroit still in bankruptcy?

Tuesday marks the five-year anniversary of Detroit’s exit from the largest city bankruptcy in the nation’s history. Now billions lighter in debt and running $100 million-plus annual surpluses, Detroit is in phenomenally better financial shape than when it entered the bankruptcy, which lasted 17 months.

Does the city of Detroit tax retirement income?

Pension benefits are currently exempt from City of Detroit Income Taxes.

What is the current status of Detroit?

But the U.S. Census Bureau put 2020’s population tally at 639,111, a drop of 10.5% or almost 75,000 residents from a decade ago, according to data it released Thursday. It’s the seventh straight decade Detroit’s population has declined since the census showed the city with nearly 1.85 million residents in 1950.

At what age do seniors stop paying property taxes in Michigan?

Details of Michigan Property Tax Exemption for Senior Citizens