Missed deadlines and failure to comply with those and other terms of the agreement could be constituted as a breach of the deal and lead to the state's withholding of revenue sharing and preventing the city from entering the capital markets to sell bonds. At worst, the state Treasurer's office also could place the city in receivership.
The nine-member financial advisory board will monitor how Detroit manages its limited resources and report back to the state. It also will make recommendations to the mayor and help the city in preparing its 3-year budget.
"This is not a panacea. This is not going to be a quick fix," Council President Charles Pugh said. "We're going to have to do more cutting."
Pugh voted for the deal.
Still, it likely will be a matter of years before the changes to Detroit's financial and operational structure show results, state Treasurer Andy Dillon said Wednesday.
"I think it's a multiyear process," Dillon said. "I don't think it's two years. It's probably closer to five. It's going to take a long time. The city didn't get here overnight."
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