In March, after years of emergency management, the city of Pontiac got its finances in order, and management was returned from a state-appointed emergency manager to the elected mayor and city council.

Total spending by the city was cut from $55.2 million in 2008 to $28.2 million in 2015, according to the city’s historical finance information. Over an eight-year period, Pontiac’s annual general government expenditures were reduced from $6.2 million to $3.1 million. Spending dubbed “unclassified expenditures” was slashed from $1.3 million in 2008 down to zero, while “other functions” were cut from $13.2 million down to $2.3 million.

Public safety expenses were cut from $30 million in 2008 to $19.7 million in 2015, while public works spending was cut from $3.3 million to $1.3 million. Health and welfare spending was cut to zero, while recreation and culture spending was cut nearly $600,000.

According to the spending report, the only increase in spending from 2008 to 2015 came in community and economic development, up from $246,000 to $882,600.

General fund revenues for the city dropped from $54.2 million in 2008 to $33.8 million in 2015. Taxes also decreased over the eight-year period, from $26.6 million to $19.3 million. Grants from the state went from $12.2 million down to $9.4 million, while charges and services also decreased, going from $8.6 million to $602,000. Other revenue increased, however, from $86,000 to $1.3 million.

Pontiac was placed under emergency management by Democratic Gov. Jennifer Granholm in 2009, and in 2013 Gov. Rick Snyder appointed a transition advisory board for the city to begin its departure from emergency management.

Lou Schimmel, who was emergency manager of the city from 2011 until he stepped down in 2013, consolidated 87 different government health insurance plans into one plan to save money.

In addition, the city sold its sewage plant to Oakland County for $55 million, merged its fire department with that of Waterford Township, saving $3.6 million annually. It also contracted for police services with the Oakland County Sheriff, which saved $2.2 million a year.

On March 31, the advisory board amended one emergency manager order and repealed another, allowing the mayor and city council to conduct city business under the Pontiac City Charter. But according to a press release from the governor’s office, the board still has a role. It must approve “on-going litigation, issuing debt, contracts of $500,000 or more, and any changes to collective bargaining contracts, and pension/health care changes.”

State Treasurer Nick Khouri approved the amendments to the emergency manager orders on March 31.

“I am elated that at last Pontiac has surmounted the problems of its past,” Mayor Deidre Waterman said at the advisory board’s meeting. Waterman also applauded the return of power to the city under its charter.

Joseph Sobota, who was appointed city administrator by Schimmel in 2013 after he stepped down as emergency manager, urged the city to continue on its current path.

“We are in this position today because of the reforms initiated and implemented by the past emergency financial managers and emergency managers have begun to realize or have realized significant financial savings,” he said. Sobota also praised past steps to improve the city’s operational efficiency.

“Pontiac truly is a model of how a local government can operate efficiently,” Sobota said. “Operational reforms have been implemented to allow Pontiac to be managed like a professionally managed city.” He also said that barriers to business development, which had become petrified, were repealed.

Jane Bais DiSessa, who became Pontiac’s deputy mayor in September 2015, confirmed that Sobota stepped down from his position with the city after the board’s decision in March. Sobota could not be reached for comment and Bais DiSessa did not respond to follow-up questions about the transition.

“Pontiac shows that not all governments have explored effective cost savings solutions when they come into financial emergencies,” said James Hohman, the assistant director of fiscal policy at the Mackinac Center for Public Policy. “Pontiac was able to live within its means and provide better services to its residents through the reforms made by emergency managers.”

A flier distributed by a Saginaw County township to residents advocating a “yes” vote on a millage question likely violates state campaign finance law. Despite what the Maple Grove Township officials claim is an error in the text, the flier is still illegal, according to one long-time Michigan expert on such issues.

The flier states that the Maple Grove Fire Department asks for a “yes” vote in November on a three-year property tax millage that would cost the average household $84 per year per household for three years. The millage would give the department $252,000.

Cheryl Bishop, the township treasurer, said the flier includes a misstatement and should have read “special assessment” rather than “millage.”

“When we sent the flier to residents we printed the word millage in error,” Bishop said in an email. “It should have read Special Assessment. We had consulted an attorney about the wording but the error was not caught before the mass mailing. We have the correct wording on the ballot proposal for November.”

Bishop did not respond to follow-up questions regarding the legality of the flier.

The Michigan Campaign Finance Act states that public bodies must remain neutral during elections. But the flier, sent to residents in the mail along with property tax notices, unambiguously advocates for residents to vote “yes” on a ballot measure.

“We as a department are asking for your ‘YES’ vote for a 3-year millage that would allow us to replace our outdated 1980 Chevrolet Mini Pumper,” the flier states. The flier shows pictures of the truck in use now and the proposed truck that would be purchased.

Click here to see the flier.

The fire department also said on the flier that the pump apparatus of the truck is nearing the end of its use and is increasingly expensive to repair.

Bob LaBrant, a Michigan attorney who for decades has specialized in campaign finance law, said the expressed advocacy of the flier makes it illegal under state law.

“Express advocacy (vote yes) is what makes this flier in violation of section 57 of the Michigan Campaign Finance Act, not the terms ‘millage’ or ‘assessment,’” he said. “Section 57 spells out what the penalties are for a violation of section 57.”

Dave Gillie, a township resident, said he received the flier in the mail sealed in the same envelope as his property taxes.

“When I saw it was actually advocating a ‘yes’ vote I was quite shocked,” he said. “It wasn’t that I disagreed with the information that they put on there.”

“It actually advocated a ‘yes’ vote using our tax dollars, which is why I had a problem with it,” he said. Gillie said he received the flier on June 28.

There are many examples of local governments distributing information that is highly favorable to tax increase proposals, but as long as they don’t expressly ask for a “yes” or “no” vote on a measure, they do not violate current state law. For example, last year the city of Rochester Hills wanted to raise property taxes for police and fire budgets, so it implied a vote on the matter was a life-or-death situation. In 2014, the Pinckney school superintendent asked voters to renew a multi-million dollar millage.

In January, Gov. Rick Snyder signed a bill that restricted local governments from using taxpayer dollars to advocate for tax increases within 60 days of an election. Days later, a judge granted an injunction blocking the law.

Editor's note: Maple Grove Township is in Saginaw County. The original story had the wrong county.