Highland Park Business Association

After being under three successive state-appointed emergency financial managers since June 2001, the state has given control of Highland Park's finances back to city officials -- but with conditions and state monitoring. Advertisement

The city is still under a financial emergency and will continue to be until the states Local Emergency Financial Assistance Loan Board makes a recommendation to Gov. Jennifer Granholm that it be lifted.

"This is just another step in the process of returning complete control to local officials," said Caleb Buhs, a spokesman for the state Treasury Department.

The 90-day contract with financial manager Robert Mason ended Friday.

Before departing, Mason issued a directive that city officials are expected to follow through July 17, 2010, or risk having another financial manager appointed.

The order calls for:

• Giving the Treasury Department monthly cash flow reports that will be reconciled with bank statements.

• Providing monthly reports for amounts more than $5,000.

• Submitting monthly copies of all payment records.

• Keeping the state informed as to how it will resolve a $3.3-million debt to DTE Energy.

Gov. John Engler appointed the first emergency financial manager in June 2001, after the city fell behind in pension fund payments and had a deficit of $3.5 million.

Over the years, two others managers have overseen the citys finances, making cuts, closing the citys library and contracting police service. Arthur Blackwell II was appointed the emergency manager in March 2005. The state fired him after he was accused of overpaying himself more than $260,000.