The city continued to move closer to resolving this bankruptcy mess that has hung over Detroit.
Nathan Bomey, Matt Helms and Joe Guillen of the Detroit Free Press report that the city has reached five-year collective bargaining agreements with two of its police union -- the Detroit Police Lieutenants and Sergeants Association and the Detroit Police Command Officers Association.
The agreement addresses wages, pensions and health care benefits.
On the downside, the Freep reported that the city has not reached deals with the larger Detroit Police Officers Association and the Detroit Fire Fighters Association.
The Freep reports that the city disclosed in court filings:
■If the city successfully spins off the Detroit Water and Sewerage Department to an independent authority or private company within seven years, 50% of the proceeds from the deal could be used to help restore pension cuts.
■The two independent trusts established to manage Detroit’s retiree health care insurance, called Voluntary Employee Beneficiary Association (VEBA) trusts, will collectively receive $450 million to deliver benefits. The city is escaping a $4.3-billion retiree health care liability and will make no future payments on retiree health care after its bankruptcy restructuring is complete, according to the court documents.
The Freep reports that U.S. Bankruptcy Judge Steven Rhodes will have a hearing, starting in late July to determine if the city's restructuring plan is fair to creditors and whether it is feasible.
