I am writing with the permission of the Mayor and City Council to inform you of the financial crisis facing the City of Hamtramck. Simply put, based on our current situation, we anticipate that the City of Hamtramck will not be able to pay its bills or meet payroll as of February 1, 2011. This situation has unfolded over the past year, and is finally at a point where we feel that we have run out of options.

As a way of providing some background, in 1981, the City of Hamtramck and the City of Detroit entered into an Interlocal Agreement relating to the Central Industrial Park Project, the project related to the construction of the General Motors Assembly Plant located on the boarder of Hamtramck and Detroit. (A copy of the agreement is attached.) That agreement has been, and still is in full force and effect.

In 2009, the City of Detroit began delaying payments to the City of Hamtramck, with the last payment being made in January 2010, that the agreement required be paid. Immediately following this last payment, the City of Detroit claimed that it had overpaid the City of Hamtramck from FY 2001 through FY2008, and immediately ceased all further payments in an attempt to recapture these supposed overpayments.

The City of Detroit, it should be pointed out, claims that the State of Michigan triggered this course of events through one of its audits of the City of Detroit. Whatever the case, the result of this action was that the City of Hamtramck, on September 3, 2010, filed suit against the City of Detroit in an attempt to enforce the contract, and to determine if overpayments had, in fact, occurred.

In order to provide you with more detail related to the lawsuit I am attaching a variety of documents:
1. Verified complaint for declaratory judgment, injunctive and other relief, filed by the City of Hamtramck.
2. Answer to complaint and counter complaint on behalf of the City of Detroit
3. Plaintiff/Counter-defendant’s answer to counter-complaint, filed by the City of Hamtramck
4. Defendant City of Detroit Tax Increment Finance Authority’s affirmative defenses
5. Defendant City of Detroit Tax Increment Finance Authority’s answer and affirmative defenses to plaintiff City of Hamtramck’s complaint.

The above listed documentation will provide you with background and fairly current status of the lawsuit. Other activities continue outside of all of the filings that have taken place. The City of Hamtramck is hopeful that we will be in front of the judge during the month of November, at least for the first step in this potentially lengthy process.

Continuing with the background, as a result of Detroit’s actions, the City of Hamtramck did not receive a full payment in FY 2009, and has received nothing for FY 2010. While amounts are still in dispute, the City of Hamtramck feels that we are owed approximately $3,000,000 covering FY 2009 and FY 2010. By not receiving the anticipated payments from the City of Detroit, the City of Hamtramck has experienced a $1,000,000 shortfall for FY2009, and an additional $2,000,000 shortfall for FY2010. An additional $2,000,000 was anticipated as part of FY2011 revenues, which means that by the end of FY 2011 the City of Hamtramck will experience a total shortfall of approximately $5,000,000. In a community with annual revenues of $18,000,000, a $2,000,000 annual shortfall is devastating, and, at this point, will result in us not being able to pay our bills.

We recently completed a revenue projection that shows, assuming no further payments from the City of Detroit, that we will have exhausted our General Fund balance and our Budget Stabilization Fund by January 31, 2011. (See the attached document.) At that point we will not be able to pay our bills, nor will we be able to meet our payroll obligations. This is what prompted discussion with the City Council, and led to the drafting of this letter.

As you will recall, an Emergency Financial Manager (EFM) was appointed for the City of Hamtramck in FY 2000. He remained in place for about 5 years, and was eventually released once the City adopted a new charter with the Council/Manager form of government in place. During his tenure with the City many changes were made including staffing reductions, privatization of services and the selling of property, all as ways of balancing our budget and helping us to avoid the situation we are facing today. Bonds were also sold to cover operating expenses, an approach that is currently costing us $600,000 per year in order to pay off the bonds. The only thing that the EFM could not do was to ignore or eliminate the union contracts in order to make significant changes and balance our budget. One attempt to modify one of the contracts was made, and was quickly reversed in arbitration as the changes were made without the union’s agreement.

In reviewing our current situation, in an attempt to offset the temporary, or permanent, loss of $2,000,000+ annually, we have reduced services, laid off staff, and implemented a 5% salary reduction for non-union personnel. While this has reduced overall costs, we are still far short of the $2,000,000+ reduction needed to balance our budget. Adding to this situation are some critical cost increases. The cost of our health insurance has skyrocketed, up 41% from last year and anticipated to increase another 40+% next year. We are looking at alternatives presently. We have also experienced increases to the cost of our pension contributions. It is complicated enough finding ways to reduce overall costs without some of those costs continuing to escalate.

While the appointment of another EFM may be an approach that is considered, the fact is that an EFM will not be able to accomplish anything more than we have accomplished over the past few months. While we may be able to take additional, minimal steps to reduce costs, the fact is that reducing staff and benefits, especially in our police and fire departments, is the only alternative that is left in order to reduce costs by as much as $2,000,000 or more per year. All three police and fire contracts contain minimum staffing requirements and guarantee certain benefits, and therefore do not allow us to reduce staff below current levels or modify benefits without approval from the unions. The contracts for our two police unions will expire on June 30, 2011, the fire fighters contract expires on June 30, 2014. Unfortunately if we are going to make changes to these agreements we cannot wait for the contracts to expire, nor can we wait beyond the next couple of months to begin making changes if we are to reduce our costs before we reach the point of not being able to pay our bills. Immediate action is needed.

We do not need an EFM to look for cost savings within our operations, which was done under the previous EFM, and has continued under my direction. We know what needs to be done, and are in a position to take action, we simply lack the authority to take the needed action. An analysis by an EFM will take time, and time is something we do not have if we want to avoid running out of funds. We need to work closely with your department in order to move quickly to bankruptcy, the only option available, to our knowledge, where we can set aside our union contracts, specifically our police and fire contracts, allowing for staffing and benefit reductions in both departments, offsetting the $2,000,000+ deficit we are facing. While this step may seem radical in its approach, it is the only approach that will quickly and effectively allow us to address our shortfall.

The first question I would ask, if I were in your position, is whether or not Hamtramck has approached its unions to ask for concessions. The fact is that we have approached our unions on 3 separate occasions over the past year, asking for concessions in an attempt to eliminate our deficit. (We are about to make a fourth attempt.) Each time we fully explained the financial situation, and warned of the potential consequences if our request was denied. Our requested concessions at that time were smaller than they will be, as we felt, at that time, that we would have more time to feel the effect of any concessions and meet our goals for reducing cost. While the fire fighters union provided some very small concessions, passing on a negotiated salary increase and utilizing compensated time off in lieu of payment for holiday pay, our police and AFSCME unions have denied each request, refusing to give even the smallest concession. When finally faced with layoffs, our AFSCME unions offered some concessions, but their offer was far short of the concessions we had requested, and therefore the needed savings could not be realized through their offer. With our unions providing little or no concessions, we have not been able to offset the anticipated shortfall and are therefore preparing for the worst.

I am notifying you of our situation, am asking for your assistance in addressing this issue, and I am asking that we work together to quickly and effectively address this shortfall. Hopefully by working together we will be able to avoid not being in a position to pay our bills or to meet our payroll obligations.

I look forward to your suggestions, and your guidance. As this is our most critical issue, my schedule will remain flexible so that I can be available to meet and discuss this matter at your convenience. Please feel free to contact me at the telephone number, or via my e-mail address, both of which are listed in the header of this letter.

Thank you for your consideration.

As volunteer festival organizers our mission was not only to put on the best event ever, but to do so without further burdening the city financially. Last year’s festival was not a financial success and cost the city over $19,000 after all the bills were paid. The Council and Mayor made a brave decision to support our effort this year given what they knew about festival costs in 2009. We certainly did not want to disappoint them after receiving their overwhelming endorsement of our plans.

With this in mind our first strategy was to review the 2009 financial statement before planning anything. After examining vendor contracts, sales revenues, financial sponsors and costs for security, insurance and the like it became obvious some things had to change if we were to at least break even. As a result we had to break tradition by making changes to our vendor contracts in order to create a financial win-win for both our vendors and our city.

Overall the new contracts have been very well received as you will see in both the quality and quantity of vendors both new and old that have chosen to participate this year. Copies of the new vendor contracts are posted online for all to see at the festival website: http://hamtownfest.com/vendors.html.

We especially welcome the Hamtramck Police Reserves as our designated non-profit organization and hope you will support them as strongly as you have the Hamtramck Firefighters in the past.

Kathleeen Bittner and Rachel Srodek
Hamtramck Labor Day Festival Committee

The action consisted of an ad in this newspaper requesting parents and residents to document the problem of school and community violence for discussion and strategic response. As the volunteer Co-chair of HCI Steering Committee, I also sent information via e-mail that I have since learned is not true.

This letter is an apology to Superintendent Tom Niczay and the School Board for my failure to verify the scope of the facts prior to sending out information.

While I cannot speak for any other schools, the Hamtramck Public Schools follow a school safety and incident reporting policy. I have personally seen the folder of records of incident reports faithfully made throughout the 2009-2010 school year by the HPS. The incident report policy is crafted per the directions of the Wayne County Prosecutor’s Office. According to Mr. Niczay, any incident that involves violence is reported in accordance to the law to the Hamtramck Police Department.

The Hamtramck Police Department forwards the information to the Wayne County Prosecutor.
This practice came into question in community meetings this past spring because some of the police personnel who met with community groups did not have knowledge of specific incidents related by students and parents to HCI.

I have since learned that reports were made about the incidents in question, however, those reports are not generally seen by community police officers. I believe we have a better understanding now of the school’s responsibility and compliance and an assurance from the Hamtramck Public Schools that they will continue to report physical confrontations and violence as required by law.

Again, I apologize for stating that “incident reports were not being filed by the Hamtramck Public Schools” when in fact, all known incidents have been filed with the authorities as required.

All of us want a safe school environment and safe streets around schools during dismissal time. HCI Weed and Seed promotes volunteer efforts toward that goal through Neighborhood Watch and Block Club groups and provision of grant funds for police overtime (the grant does not permit funding for police salaries, only overtime).

According to HPD administrators, one action that would be simple and welcomed is the presence of more adults at school closing time. This happens quite naturally with elementary students, but it would be very helpful for the middle and high school dismissal time.

HCI Weed and Seed looks forward to a safe and violence-free school year for 2010-2011. I would like to thank all the volunteers, school, and civic leaders who work hard to make Hamtramck a safe place for children and youth.

Rev. Sharon A. Buttry
Co-Chair, Weed and Seed Steering Committee
Hamtramck

I am sure you have seen various news reports about murders, beatings and robberies of old people on the television, but there are a lot of things going on that have not hit the 6 o’clock news but are still very real here. A few months back an ice cream truck was robbed and a family beaten on the same block on the same day and another resident on the same street has been broken into three times in one month.

Another resident from the senior center was knocked over on her bike while riding down Joseph Campau on the sidewalk and was run over by a young person and was severely injured. I have other stories that are too numerous to list. The problem is not the Hamtramck Police Department, which has a very quick response time when called, but it is coming from lack of caring in the entire community of the citizens who turn their heads much too quickly and don’t want to get involved and from the landlords who are more worried about money than they are in having good tenants in their houses.

Our neighborhoods are full of trash up and down certain streets and around many of the stores dumpsters are overflowing. I was born and raised in the city of Detroit and know for a fact that it once was a very beautiful city, but one just has to watch the news and see what happens when people stop caring about their community.

One way to start having your voices and concerns heard is by showing up to the Block Club meetings on the last Thursday of every month on the corner of Danforth and Jos. Campau at 6:30 p.m. This is a good community with a lot of good people of all colors, backgrounds nationalities and religions. Let’s pull together as one community and show everybody how it’s done Hamtramck style. (For more info about the Block Club call 313-999-5483 or 313-418-2097.)

Kimberly Gretsinger
Hamtramck

I think you’re basically saying that the Rec. Department should be closed down
because they are just a waste of money. I think The Rec. Department is a great
opportunity to have in Hamtramck. It gives kids an opportunity to go outside
and exercise.

If it wasn’t there, a lot more kids in Hamtramck would be overweight and lazy. That would cause a lot of kids to get bad sicknesses like diabetes when they get older. I have had so many great experiences with the Rec. Department.

I have signed up for soccer for 5 years and it was great. I signed up for basketball camp and it was great. I signed up for baseball and it was great. I just signed up for tennis and so far it is great. I’ve signed up for swimming and it was great, too. Swimming lessons can save your life if you fall off a boat.

Through the Rec. Department, we bought tickets for the Tigers game this year and last year and it was really great. So far everything I’ve done with The Rec. Department was awesome. I don’t think The Rec. Department should be closed down. It has done a lot of great things for me and my sister and my neighbors and friends.

The Hamtramck Rec. Department has made me a stronger and healthier and more creative person.

Logan Hughes
Hamtramck

First off it was fabulous. We had plenty of food, mainly salmon, beef and chicken kabobs, which were marinated, prepared and wonderfully grilled at the “Royal Kabob” restaurant by Chef Abu Sinan.

Everyone raved about the quality of meat, how seasoned it was, all the beautiful vegetables and the rice. The bread was fresh and the garlic spread was addictive.

The manager, Mr. Abdu, was ever so helpful in arranging time slots to discuss matters and the entire staff; I bow my head down to you.

Thank You! I highly recommend their catering services or just dine in for fresh food.

Momena V. Settipani

Hamtramck

Unfortunately the City Council agenda wasn’t published until Friday at 1:50 p.m., allowing little time for public input. The DDA’s agendas aren’t available to the public at all.

According to the resolution, ADT will deploy deploy four cameras. Three “to be placed along Jos. Campau between Holbrook and Caniff and one camera to be placed above ‘Shoppers World’ parking lot.” The DDA plans to spend $19,000 plus “$29,550 – $28,550 will be financed.”

Video surveillance might seem like a good idea but all major studies
show it doesn’t reduce crime. Independent analyses of crime data in the
UK, where surveillance systems are prevalent, show that “video
surveillance has no statistically significant impact on crime.” The
preliminary US studies indicate “video surveillance system in the US
little to no positive impact on crime.”

So how is this a good idea?

If we did a cost-benefit analysis on purchasing $48,550 of video surveillance equipment, based on the studies, we would not benefit in reduction of crime. In short, it’s a waste of money.

Both the 2002 Welsh & Farrington study and the 2005 Gill & Spriggs study found that video surveillance appears to push crime 200-500 feet away from the cameras while the overall crime rate is unaffected.

This is the unintended side effect, “pushing” crime away from the cameras and into the adjacent neighborhoods. The 1997 study mentioned by the DDA Manager showed crime reductions in the vicinity of the camera, but not an overall reduction of crime. The crime just moved up the block. Two new domestic studies are under way by UC Berkeley and USC and preliminary findings are the same: no significant impact on crime.

There are better ideas.

The Department of Justice “best practices” to reduce crime are for more police patrols, more community policing, neighborhood watch, and improved communication between citizens and the police department.

Why not spend the $48,550 to police the DDA area with foot and bicycle patrols? Both are community policing and would make people safer in the district. If we measured cost-benefit on both plans, we’d find that the Department of Justice best practices would do more to reduce crime in Hamtramck than video surveillance.

There’s also the issue of protecting our civil liberties. In February 2009, Cambridge, Massachusetts city council voted 9-0 against installing a video surveillance system with a $4.6M grant from the Department of Homeland Security. Marjorie Decker, a Cambridge city councilor, said, “Because of the slow erosion of our civil liberties since 9/11, it is important to raise questions regarding these cameras.”

Unlike the Department of Justice, The Department of Homeland security has spent millions deploying surveillance systems in communities and is suspected of using facial recognition software track immigrants.

Abuse of video surveillance systems is far too common. Two FBI officers in West Virginia were prosecuted for zooming in on teenage girls in a mall dressing room. A San Francisco police officer faces internal charges that he used surveillance cameras and ogle women as they walked through an airport terminal. Without proper controls, Hamtramck’s video surveillance system will also be in danger of abuse.

It is not advisable, necessary, or in the public interest to finance a video surveillance system for the DDA district. There are more effective ways to combat crime. Let’s use our heads here and not jump on the surveillance bandwagon.
Steven Cherry
Hamtramck

Thanks to the Hamtramck Public Schools family and the city at large for helping make the last day of classes for Hamtramck Public Schools students safe. The end of the 2008-2009 school year brought a much improved and calmer dismissal throughout the district.

Although not 100 percent shaving cream and egg throwing free, it was the safest dismissal in the last several years. Hamtramck Public Schools administrators, teachers, security staff, custodians and other support staff worked as a team to curb rowdy and dangerous behavior. The Hamtramck police, and Hamtramck police reserves, of course were a big help.

Parents being on the “the same page” as the school district in terms of agreeing what are acceptable school/community behavior standards is also a big help. Changing the culture of inappropriate behavior being “acceptable” is still a “work in progress,” but inroads are being made. Some students still hid eggs and shaving cream in bushes and alleys but total chaos did not occur, far from it. Students ended the year the way it should end with youthful exuberance but with a sense of school, family and community pride along with understanding safety issues and respect.

Hamtramck Public Schools staff outside of the high school, middle school, and elementary schools felt the dismissal was the calmest in years due to planning. The preparation before the last day of school which included not allowing backpacks, checking lockers, phone calls to parents whose son or daughter were heard bragging about throwing eggs and instructing parents to pick those students up from school, staggering student dismissal by several minutes, checking outdoor areas beforehand, and discussing community perceptions of wild students with the students etc. did make a difference.

Having a prepared plan is far better than just reacting. An ounce of prevention is better than a pound of cure. Thanks again to everyone that helped with the Hamtramck Public Schools end of the year dismissal, you made a positive difference.

Thomas Niczay

Superintendent

Hamtramck Public Schools

To the new, as well as former, publisher, Mike Wilcox, thank you for stepping back into the picture. We need you, and appreciate your support and participation.

To Charles Sercombe, it is good to once again be able to read your excellent and thoughtful writing.

It is good to see some other familiar by-lines. Also, the minutes of the various city meetings are a great addition. I wish you all a long and strong publication run together.

If and when you get set-up for subscribers of your hard copies, I will sign-up.

In the meantime, I have linked to you on my website The Informed Citizen Lobby: theinformedcitizenlobby.com , and placed the link between The Detroit News and The Free Press in the Reading section.

All the best to everyone.

Felicia Davey

Neither state nor federal law provides local law enforcement with the tools they need to prosecute hate crimes based on sexual orientation, gender identity, and other categories. According to the FBI, a victim’s sexual orientation is the third most-likely characteristic criminals single out when committing hate crimes, after race and religion.

In 2007, there were over 1,250 hate crimes committed nationwide solely based on a person’s sexual orientation. In Michigan alone that year, there were over 200 hate-motivated incidents based on a person’s sexual orientation or gender identity.

Hamtramck is no stranger to hate-motivated crime – just several months ago, an Indian man walking alone on Conant was physically assaulted and robbed by three men, solely based on his perceived religion. The assailants believed he was Muslim, so he was attacked.

As the recent shooting at the U.S. Holocaust Museum demonstrates, hate-motivated crime is on the rise nationally. While people like Gary Glenn of the American Family Association seek to minimize hate crimes, or worse, demean the victims of hate-motivated crime, the only responsible thing to do is for the State Senate to pass the Michigan Anti-Bias Crime Statute to give law enforcement the tools they need to stop these destructive crimes.

Gregory Manore

Hamtramck Human Relations Commission