1991 and 1992 Operating Results

The audited financial statements for the year ended June 30, 1991 reflected that the General Fund's operating revenues exceeded expenditures by $178,000. No long-term debt was borrowed and no transfers-were necessary from the Water and Sewer Fund to assist in balancing the General Fund operations. In addition, the 1991 operations included the accelerated Emergency Loan Board note principal payment of $100,000. After considering a transfer of $125,000 made by the General Fund to another fund, the $95,700 surplus at June 30, 1990 increased to $148,500.

In short, Ecorse's operations during the first 10 months under the Mayor and Council demonstrated that this Mayor and Council could operate effectively beyond the receivership. No additional short-term or long-term borrowing was required through June 30, 1992 to meet operating needs. The Pension Plan contribution of $1.1 million was paid in accordance with the Court order for the 1991 and 1992 fiscal years.

Given the surplus at June 30, 1991, the Mayor and Council approved an additional payment of $100,000 towards the payment of the Emergency Loan Board notes. This second $100,000 principal payment is in advance of the original note payment schedule.