Discussion 1
Detroit's demographics state that it is the biggest and the most populated city in Michigan. It is the largest municipality in the United States, the Canadian border region. It is found in the seat of Wayne County (Jeff, 2018). In 2019, the municipality's data showed a populace of 670 031, with this population making it the 24 th most populated city in the United States. Its metropolitan area is called metro Detroit and is household to 4.3 million people. This makes it the second-largest urban after the Chicago metro area and the 14 th largest in the country. This city is recognized for its contribution to the music industry and art repository, architecture, design, and historic locomotive background. It is a crucial port on the Detroit River (Jeff, 2018). Detroit city supports the second-largest local economy in the mid-west after Chicago and before Minneapolis-saint Paul and the 13 th largest in the country.
Discussion 2
Evaluating the previous trends of the city’s revenues, studies indicate that they have changed drastically. They have decreased to an extend of falling from $1,523.6 million to $400 million (Jeff, 2019). Some studies suggest that the state government has contributed to the budget problem by cutting significant revenue sharing to the city. Detroit has the bottommost domestic income among Michigan’s most famous towns (Jeff, 2019). The city also has a high misconduct rate, and safety is crucial accountability to the city.
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Again, Detroit’s population has been falling with time, but the cost has not decreased with the fall in the population (Jeff, 2019). For instance, residents’ deterioration has led to many unoccupied constructions which still need to be protected from fires. The city also faces serious challenges when it comes to its legacy costs. When residents pay taxes currently, they are paying for services that have already been consumed in the past. Some of the legacy payments in Detroit include pension obligation certificates, general obligation debt, and retiree healthcare payments (Jeff, 2019). The idea of shedding some legacy costs has led to the city advocating for the city to reconsider filing for bankruptcy.
Discussion 3
Financial analysis has been conducted trying to look at the cause of Detroit’s bankruptcy, and it has been concluded that the city’s elected officials have contributed significantly to financial deficiencies by failing to make hard political and economic decisions that probably would have protected the town from the fiscal chaos (Nathan & John, 2018). This means that the cause of the city's financial instability was due to its political guidance, which has led to a massive migration of residents, resulting in home abandonment and engaged the leaders into a billion-dollar borrowing binge. This has led to the creation of new taxes and failed to cut expenditures required to be cut (Nathan & John, 2018). Unions and arbitrators pressurized the political sector. Still, it did not cut the health care benefits burdened the town with immense costs that up to date are a threat to the protection and worth of life of the people living in the city.
Discussion 4
Detroit should some of the following alternatives to bankruptcy cost-effective and efficient and try to work out its financial holes (Detroit, 2019). One of the alternatives is debt settlement or debt negotiation. This will require the city’s attorney to reach out to the creditor and discuss a large sum payment for the debts. The goal of this strategy is to settle down the debt as soon a possible. Secondly, the city can reconsider debt consolidation. This will mean the city has to lump its creditors and take out one big loan to pay off all its creditors. This will ensure that the country’s debt is paid and limit the negative impact on the credit (Detroit, 2019). Lastly, the city should consider fair debt collection practices that will protect it from harassment by creditors.
References
Detroit, L. (2019). Michigan Bankruptcy Alternatives. Navigation. Pg.2-3. Https://Www.Detroitlawyers.Com
Jeff, D. (2018). Detroit Census Place. Data USA. Https://Www.Datausa
Jeff, G. (2019). Analysis: Detroit Enjoys Highest Per-Capita Revenue in State Thanks To High, Diversified Tax Rates. Citizens Research Council. Pg. 3-6. Https://Www.Mlive.Com
Nathan, B & John, G. (2018). How Detroit Went Broke: The Answers May Surprise You- And Don’t Blame Coleman Young. Detroit Free Press. Pg. 3-6. Https://Www.Detroitfreepress.Com.Cdnampproject.Org
