Faced with the possibility of running out of money by March 1, the city of Hamtramck is holding a townhall meeting tonight to seek input on whether to accept an emergency loan from the state of Michigan.
Last year the Granholm administration rejected Hamtramck’s request that it be allowed to file for bankruptcy — a move that would allow the city to renegotiate its labor contracts — and instead offered loan options.
Last week City Manager William J. Cooper told Michigan Radio that he wants to revisit the bankruptcy discussion with Governor Snyder and new state Treasurer Andy Dillon.
“I don’t know that the door is closed,” he said. “I think they’re open to further discussions.”
The city, which has about 23,000 residents, is facing a $3 million dollar deficit.
According to the state Treasury Department a municipality can only seek bankruptcy if it is recommended by a state-appointed Emergency Financial Manager.