Governor empowers state treasurer to end Allen Park’s receivership

Allen Park Mayor William Matakas

Allen Park Mayor William Matakas

Full local financial control re-established

Sunday Times Newspapers

ALLEN PARK – The city’s receivership status was terminated by State Treasurer Nick Khouri, who announced Jan. 31 that Gov. Rick Snyder delegated him to act on the recommendation of the advisory board.

Khouri said the city, under the supervision of the board, corrected its financial conditions “in a sustainable fashion.”

“This is a significant and well-deserved day in the city’s proud history,” Khouri said in a Jan. 27 letter to Mayor William Matakas. “I extend my congratulations and look forward to an ongoing relationship with the city as it continues on the path of financial stability and success.”

Khouri said the cooperation of city and state officials to problem solve complex debt issues moved the city to a position to succeed independently.

City officials regained full local control to manage internal operations and finances, including the approval of city council resolutions and ordinances without state oversight, which the council exercised Jan. 31 at a special meeting to approve a new vendor to demolish the old city hall and police department.

Allen Park’s city administrator requested a preliminary state review March 21, 2012, which led to the financial review team’s conclusion on Aug. 8, 2012, that a financial emergency existed and the city had no satisfactory way to resolve its numerous financial and operational challenges.

An emergency manager ran the city from March 2013 to September 2014, after which the advisory board was appointed to oversee the transition back to local control.

Matakas said he was grateful for the advisory board’s professionalism during the transition.

“I look forward to working with local and state officials to ensure we continue down a path of financial success,” he said.