|
Remember Robocop?
Detroit has became the largest city in US history to file for bankruptcy protection, succumbing to debt of $US18.5 billion ($20.2b).
Detroit by the numbers
411 homicides in 2012
58 minutes for police to respond to calls, compared to 11 mins nationwide
Only one third of the city's ambulances work
40 per cent of the city's streetlights don't work
78,000 abandoned buildings
Population down from 1.8 million in 1950 to 685,000 today
Debt of $US18.5 billion
Once the fourth largest US city, Detroit has seen its population shrink by more than half, from 1.8 million in 1950 to 685,000 today, as crime, flight to the suburbs, and the hollowing out of the auto industry have all eaten away at its foundations.
Thousands of residents left Detroit when the financial crisis hit and without them and their taxes, the city has gone broke. The city has an annual deficit of around $US400 million.
"The citizens of Detroit need and deserve a clear road out of the cycle of ever-decreasing services," Michigan governor Rick Snyder said in a letter accompanying the court filing.
"The only feasible path to a stable and solid Detroit is to file for bankruptcy protection."
Detroit stopped making payments on some of its $US18.5 billion of debt and obligations last month.
Mr Snyder appointed an emergency manager with a background in bankruptcy earlier this year to restructure Detroit's finances.
He said he had "very much hoped" the move would help the city avoid bankruptcy, but that now it is time to "face the fact that the city cannot and is not paying its debts as they become due, and is insolvent."
He listed a host of problems that prove Detroit cannot meet its obligations to its citizens either.
The homicide rate is the highest in nearly 40 years, and, for more than two decades, Detroit has been on the list of the most dangerous cities in the United States.
People have to wait an average of 58 minutes for the police to respond to their calls, compared with an average of 11 minutes nationwide.
A lack of funds for maintenance and repairs means only a third of the city's ambulances work and police cars and fire trucks are also in poor condition.
There are 78,000 abandoned buildings scattered across the city, and 40 per cent of the streetlights do not work.
The city's tax rate has reached its legal limit and even if it could raise rates, residents cannot afford to pay more, Mr Snyder said.
Barry Beale owns Shantinique records, one of the city's iconic record stores. He says the city is struggling.
"I don't think anybody really in charge. Nobody seems to have an answer or can get anything done," he said.
The long term effects of the move to file for bankruptcy protection will be felt by the city's current and former employees.
The city's two pension funds are suing over moves to cut retiree benefits; there are claims they are underfunded by $US3.5 billion.
But the city's emergency manager, Kevyn Orr, has moved to reassure the city's remaining residents.
"Services will remain open, paycheques will be made, bills will be paid. Nothing changes from the standpoint of the ordinary citizen's perspective," he said.
ABC/AFP.
__________________
Calm, quiet, smooth, devastating
|
Linear Mode
