1. Stacy L. Fox Former Deputy EM City of Detroit April 28, 2015

2. Over the past several decades, the City’s population has declined over 60% 2

3. Detroit has more revenue sources, but less revenue State-shared RevenueRevenue from taxesFee and Service Revenue 1960 Total Revenue: $2 Billion (in 2013 dollars) State-shared revenue 16% Property taxes 49% Fees, sale of services and other revenue 35% 2012 Total Revenue: $1.1 Billion (in 2013 dollars) State- shared Revenue 16% Property Taxes 13% Income Taxes 21% Fees, sale of services and other revenue 30 % Wagering Taxes 16% Utility Taxes 4% 3

4. 4 High unemployment High crime rates Crumbling infrastructure Inadequate city services Inability to compete with suburbs

5.  Detroit’s deteriorating financial condition continued to grow as legacy expenditures absorbed additional resources 5

6. 6 Resolution through Mediation Mayoral Election Ruling on Pensions Grand Bargain Pensioner Vote

7. General Fund Pro Forma Capitalization 7 Total: $10,506b Total: $3,300b LTGO COPS Swap

8. General Fund 10 Year Pro Forma Revenues and Expenditures 8 Expenditures $14.3b Expenditures $11.2b $3.9b deficit Revenues $11.2b (in $billions) Without Restructuring With Restructuring

9. Financial Summary of Reinvestment Initiatives – Ten-Year Total $1,717.8M -$841.1M $876.7M Additional Operating Expenditures Fleet Reinvestment Technology Infrastructure Reinvestment Capital Expenditure Reinvestment Reorganization Implementation Costs Department Cost Savings Initiatives Department Revenue Initiatives $715.7M $167.4M $151.7M $225.3M $37.7M -$358.2M -$482.9M Blight $420.0M 9

10. Done: Restructured balance sheet Certain outsourcing Public Lighting Authority Great Lakes Water Authority In Progress with good results: City service improvements Operating Land Bank Blight demolition on-going Challenges: Further outsourcing Organizational restructuring Continued population decline due to structural and service disadvantages Ensuring the City stays on track 10 State of the City – Post-bankruptcy

11. Questions? 11