City Of Detroit Case Study

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The city of Detroit is the largest city in th Michigan state. The city is located on an international waterway, which is connected with seaports around the world through St. Lawrence seaway.
During consequent 60 years, the city has experienced impressive achievements followed by unprecedented collapse. In 1950, populated by 1,8 million people, city was a sample of highly industrialized world and the center of automobile industry.
In mater of decades, Detroit went from being the shining star of American industry to one of the most distressed cities. The culmination of disastrous downfall was 2013 when the city filed for Chapter 9 bankruptcy.
The most noticeable migration waive occurred in the past decades, when the city and two of three biggest car companies (General Motors, Chrysler) announced the financial
…show more content…
Property taxes accounted for the lowers rate of collecting taxes owed. For example only 53% of property taxes were paid in 2011 year by owners. As a result of the Detroit news investigation conducted during 2013 year it was found that Detroit was over assessing homes by 65%.
The next bad decision of Detroit’s authority was borrowing more and more. Taking on Too Much is the one of the 7 deadly sins of public finance. Trying to close budget holes. Detroit doubled its debt to $8 billion from 2000 to 2012.
From time to time Detroit missed chance after chance. The city management failed to take advantage of 1990th economic growth, when tax revenues rose, population decrees slowed down. Misapplying a temporary windfall was also one example of mismanagement of city authorities.
While city services need to be reduced as the population decreases, Detroit has found it difficult to decrease a number of municipal workforce The city mayor Archer increased the city workforce from 1994 to 2001 even population declined (by the end of 2001 year, the city had 18,132 employees, 1 worker for 51 residents

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