Requirements under Detroit finance deal released

Memorandum lists requirements for Detroit to get millions of dollars held by state in escrow

Associated Press

DETROIT (AP) -- Detroit officials have to approve a contract to evaluate pension and health care cost reductions and other deals to improve operations are needed before the state will release $10 million to the cash-strapped city.

The requirements are listed in a "memorandum of understanding" tied to the city's financial overhaul plan. Mayor Dave Bing and state Treasurer Andy Dillon released them Thursday.

Detroit is to receive $10 million Tuesday from stabilization bonds held in escrow from a bond sale the City Council approved earlier this year to stave off short-term cash shortages.

An additional $20 million is due the city on Dec. 14.

Other "milestones" required before Tuesday's payment include the City Council's approval of a contract for outside legal counsel to support financial and operational changes.

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