Emergency Loan Board Names Financial Manager For the City of PontiacContact: Terry Stanton, (517) 335-2167 join our list serv
The Local Emergency Financial Assistance Loan Board (ELB) today, named Fred Leeb Emergency Financial Manager (EFM) for the City of Pontiac, effective Monday, March 23, 2009. Leeb, a turnaround specialist, is Owner and Manager of Nonprofit Management Group, LLC and Fred Leeb & Associates, LLC, based in Orchard Lake, Michigan.
The ELB appointment follows Governor Jennifer M. Granholm's confirmation that a financial emergency currently exists in the City of Pontiac, pursuant to the Local Government Fiscal Responsibility Act (PA 72 of 1990). The governor reached that conclusion based on a recommendation by the Financial Review Team, appointed to review Pontiac's finances in April of 2008.
A preliminary review of the city's finances began in July, 2007 following a written request from Pontiac Mayor Clarence Phillips. The preliminary review found that a serious financial problem existed in the city. A nine-member Financial Review Team was appointed to conduct a more extensive examination of Pontiac's finances. The Financial Review Team included financial management experts from the public and private sectors.
The Financial Review Team determined that a financial emergency existed in Pontiac, though city officials signed a Consent Agreement, with the Financial Review Team, that outlined several steps, designed to address the financial problems. Last month, the Financial Review Team advised the governor that City of Pontiac officials had failed to abide by terms of a Consent Agreement and had not taken adequate steps to address the city's serious financial problems.
A Community Forum will be held at 5:30 p.m., Monday, March 30, 2009 (location to be announced). Fred Leeb, representatives from the Michigan Department of Treasury, Mayor Clarence Phillips, and City Council President Art McClellan will be on hand to address residents' questions and concerns and to provide information on the PA 72 process.
For more information on the Local Government Fiscal Responsibility Act, including an explanation of the PA 72 process, visit Treasury's Web site at www.michigan.gov/treasury and select the Local Government Services button.