CHICAGO — Detroit will issue $119 million of new-money water and sewer bonds under a plan approved Thursday by the financial board that oversees city following its bankruptcy.
The bonds will be floated under the state's revolving fund for sewer projects. The city will use the proceeds to finance Detroit Water and Sewerage Department projects, including renovating a sewage facility and some of the city's incinerators.
The Detroit Financial Review Commission also approved the hiring of former Dykema Gossett PLLC bankruptcy attorney Ron Rose as its executive director. He will be paid $130,000 from state funds, according to the state.
Michigan lawmakers set up the nine-member commission to oversee Detroit's finances for at least three years and up to 20 years depending on its fiscal position.
Michigan Treasurer Kevin Clinton is the chairman. State budget director John Roberts and Mayor Mike Duggan are also on the commission. Former New York Lt. Gov. Richard Ravitch, who acted as an advisor to the federal court overseeing the city's bankruptcy case, is the commission's financial advisor.
Rose worked for 43 years at Michigan-based Dykema Gossett, where he was the founder and chairman of the firm's bankruptcy practice, according to the state.
"Ron's extensive experience with bankruptcy and restructuring will serve him well in this important post," Clinton said in a statement. "Ron is well respected in Michigan's legal community and members of the Financial Review Commission look forward to working closely with him."
