O'Keefe in the News

Lincoln Park gets emergency manager after rejection of consent agreement

Lincoln Park gets emergency manager after rejection of consent agreement

July 3, 2014

LINCOLN PARK, MI — Gov. Rick Snyder on Thursday appointed Brad Coulter to take
over the government of Lincoln Park as emergency manager, the state Treasury
Department announced.

Coulter is an Metro Detroit turnaround consultant whose managed the restructuring of
various automotive suppliers, construction companies and nonprofits.

A state review team found the downriver city to be in financial emergency, with an
$89,803 budget deficit that’s expected to grow by $1 million by the end of the fiscal year.

The deficit would grow deeper unless the city’s police unions agree to concessions,
according to the Treasury Department.

State officials cite a “trend of over-spending” that depleted a general fund balance with a
balance as high as $4.5 million in June 2010.

After the governor confirmed the review team’s financial emergency designation, Lincoln
Park’s city council voted to pursue a consent agreement with the state, one of four options
under state law, the other choices being emergency management, bankruptcy or

But the council in a 4-3 vote rejected a consent agreement that was drafted, and state
Treasurer Kevin Clinton recommended the appointment of an emergency manager.
“Brad Coulter’s extensive experience in finance and restructuring, including his
understanding of government structure and municipal services, makes him a strong
choice as emergency manager for Lincoln Park,” Snyder said in a statement. “I know
Brad will work collaboratively with city officials to address the financial emergency and
to ensure Lincoln Park residents receive the critical services they expect and deserve.”

Lincoln Park joins Detroit, Flint, Allen Park and Hamtramck as the fifth city currently
under emergency management.

A total of 17 local government entities are currently undergoing some form of state

The school districts of Detroit, Highland Park and Muskegon Heights are run by
emergency managers.

Inkster, River Rouge, Royal Oak Township and Pontiac schools have consent agreements
in place seeking to guide them out of financial emergency.

Pontiac, Ecorse and Benton Harbor are in post-emergency management transition periods
with indefinite state oversight.

And Highland Park and the Benton Harbor school district are in the state review process.