Financial Background

The principal Ecorse funds, which comprise over 95% of the operations, follow:

  • General Fund – accounts for the collection of property taxes, State shared revenues, fines and forfeits (principally from the Court), and other revenues. Expenditures include: Council, Court, general government, police, fire, recreational and other services.

  • Major and Local Streets Funds – these two funds account for repairs and maintenance of roads and streets, including debt service on general obligation debt issued for road repairs. Revenues are principally derived from gas and weight taxes received through the State.

  • Water and Sewer Fund – accounts for the acquisition costs of water from the Detroit Water and Sewer Department, sewer costs from Wayne County Department of Public Works, maintenance of water and sewer transmission lines, hook-up, meter reading, and other similar services. Amounts are billed to Ecorse residents (including corporations) based on water usage.

  • Police and Fire Pension Plan – represents Ecorse's retirement system for police and fire personnel. The Plan operates under the direction of the Pension Board which is comprised of three members: one elected representative each from the police and fire departments and an appointee by City Council (generally City Controller).

The fiscal distress which existed at the Receiver's appointment did not arise over night. The financial problems experienced by Ecorse began many years prior. The operating history of the above Ecorse funds for approximately five years prior to the receivership, during the receivership and after the receivership is included in the Appendices A and B. The financial information was principally derived from Ecorse's audited financial statements, with certain adjustments to reflect certain transactions of interest.