18th July, 2013
The city of Detroit in the US state of Michigan on Thursday became the largest city in US history to file for bankruptcy protection, court documents showed.
“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 $18.5 billion of debt and obligations last month.
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 percent of the streetlights don’t work.
The city’s tax rate has reached its legal limit and even if it could raise rates, residents can’t afford to pay more, Snyder said.
Detroit’s record of firsts:
Is home to the Motown sound founded by Berry Gordy Jr. in 1957.
Installed the first mile of paved concrete road, just north of the Model T plant, on Woodward Avenue.
Built the nation’s first urban freeway, the Davison, in 1942.
Is home to the oldest state fair in the nation, first held in 1849.
Is the potato chip capital of the world, based on consumption.
Is home to the world’s only floating post office. The J.W. Westcott II, can be found on the Detroit River.
Is north of Canada.
Is second in the nation in fishing rod sales.
Shares the world’s first auto traffic tunnel between two nations ? the Detroit/Windsor Tunnel.
Is home to the second tallest hotel in North America, the Detroit Marriott Renaissance Center, at 73 stories.
Created the nation’s first soda, Vernors. It was created in Detroit by pharmacist James Vernor in 1862.
Has the most registered bowlers in the United States.
Was the first city in the nation to assign individual telephone numbers in 1879.
.Now first US large city to file for bankruptcy