Michigan's State Treasurer Nick Khouri issued a statement on Wednesday, March 2, 2016 in response to reports about an April, 2015 emergency loan agreement with the City of Flint.
“The emergency loan agreement with the city of Flint, signed April 29, 2015, just days after I became State Treasurer, provided the City with $7 million to eliminate the City’s deficit and allow the emergency manager to leave.
“At no time did the loan agreement with Flint prohibit the city from returning to the Detroit Water System. It required the City only to notify, and receive State approval, before making such a decision.
“As with any emergency loan agreement, there are a number of financial conditions included to ensure that a local unit of government remains on solid financial footing and does not slip back into financial emergency.
“At no time did the State receive a request from the City, to move back to DWSD, between April 29, 2015 and October 2015, when the City reconnected to DWSD, with State Financial assistance.”
Brandon Dil
