The Check That Saved The Budget…

The City of Dearborn Heights is getting  money back from Michigan Municipal Risk Management Authority (MMRMA) 1.2 million. What is MMRMA this is what their website says.

Michigan Municipal Risk Management Authority (MMRMA) is a public entity self-insurance pool that provides liability and property coverage to municipal governmental entities across Michigan.

MMRMA was born in 1980 in a marketplace that was becoming increasingly unfriendly to public entities. Three member municipalities founded MMRMA as a joint purchasing arrangement, which allowed them to secure necessary insurance coverage at a reasonable price.

Around the same time, other public entity pools began to crop up across the United States. The idea was criticized and predicted to fail. However, like many of its fellow pioneers across the nation, MMRMA grew steadily over three tumultuous decades. MMRMA, and the entire government pooling industry, continues to thrive in 2010.

Within a few years of MMRMA’s inception, commercial insurers either ceased to offer coverage to governmental entities or sharply increased their premiums. The mid-1980s saw a big boost for public entity pools. In 1985, 133 members joined MMRMA and 1986 brought another 53 new members.

Also in 1985, MMRMA responded to the volatility of the commercial reinsurance market by assuming some risk directly. This enabled MMRMA to continue offering affordable, reliable coverage to members. Again, this trend-setting move was decried by the commercial insurance industry. But again, the skepticism was unfounded. Today, most public pools nationwide follow MMRMA’s lead and retain some risk themselves.

Thirty years after its inception, MMRMA is the largest liability and property pool in Michigan and a recognized national leader in the field. We continue commitment to meeting the challenges of tomorrow.

The same thing happened in 2011 then the Treasurer asked permission from the council to barrow $600,000.00 from the MMRMA. This time, however, it’s my understanding that this money isn’t being borrowed, but rather these are funds that the city didn’t have to use and those money’s will now be paid back to the city. With this money coming into the city, it looks as if the City will have a balanced budget. Let’s put things in perspective here if not for these funds coming into the City, the City would not have a balanced budget. It’s not the Mayors great leadership that the City will have a Balanced Budget, not because of closing down the city four days a month. Not because of early outs, not because of health care savings, and not because of the HO. Yes all those things helped, but even with them if not for these funds from the MMRMA the City would still have an unbalanced budget.

I think it’s important for all of us to understand this as we are all too aware the Mayors seat is coming up in 2013 there’s little doubt that he will be running again, and no doubt he will be running on balancing the budget. It’s important for all of us to remember how the budget was balanced, and to remember just what the Mayor didn’t do for years leading up to the financial mess the City is in.


15 thoughts on “The Check That Saved The Budget…”

  1. I do agree with u Tony about the animal control officer. We do need one badly.
    The city needs to find the money soon. We can’t keep having our police to do that job, they have so many other runs to go out on.
    Iam too very greatful for our pd, and fd.
    However, I do feel that city monies have been misspent in the past, and have led to some of our issues.


  2. Mona,
    I am one of the small handful of people that still read and respond to this blog. Everyone has an opinion and I still believe that the Mayor has done a lot of good for the city. I am thankful that our city is still above water and we maintained our police, fire and dpw services. I am pissed that we are still without an animal control officer. Maybe with the H.O. money you can get the council to do something about getting us an aco.


  3. I don’t know about anyone else but I don’t appreciate it when another citizen discredits our vote for the ho. the ho is what really helped our city. That was all of our votes. Not the mayors magical bs number crunching. His fuzzy math was part of the original problem along with bad timing of horrible economy.
    Kathy has only pointed out the facts. Period. U don’t have to read the blog tony.


  4. Tony

    Sorry the Mayor isn’t getting the job done and that’s my point the job is getting done for him by the HO (the residents) smaller pay outs so money is given back to city (MMRMA) closed city hall (city employees) 10% pay cut again (city employees and elected officials)
    All of us share in the credit for a balanced budget and that’s a great thing but not of his doing alone.


  5. That money wouldn’t be included in the budget because there’s no way of knowing if there would be money coming back until the end of the year. This money is based on settlements that the city paid out less then what was expected to pay out.


  6. Why wasn’t this money included in the budget from the beginning? No mention of the money during the ho battle. Seems like the truth is never given the taxpayers of this city.


  7. Drheights48127,
    Read your last two paragraphs….In my opinion you are complaining or maybe disappointed that the Mayor is getting the job done. It really does not matter how he balanced the budget, but I am thankful that it was balanced and I hope voters do remember especially after the financial mess that this poor economy created and no fault of the Mayors. Your opinion in the last two paragraphs should also include the failure’s of our City Council.


  8. Oh, please Tony. Can’t you just read the blog, accept what you want to and toss the rest? This, like other blogs, is published for whomever wants to read it and if you want to respond, cool, if not, don’t. Kathy isn’t complaining, she is passing information. She is telling you where the money came from and how things are being played out.
    Did you know about the MMRMA before this? Can’t say I ever heard of it, but now I have. We all have an opinion of what our Mayor has done or hasn’t done. Just be informed, and “thank you Kathy for the information.”
    By the way, Kathy, was this public info, did you get the info from the media or did you have to drag it out of someone involved in the city? Just curious….


  9. I didn’t say we borrowed the money we did however borrow that money in 2011 if you recall 600,000.00 was borrowed from MMRMA and yes we would have gotten the money back, but we should know how this budget is getting balanced. Wouldn’t you agree that in large part the budget is balanced from HO, 10% pay cuts, one day a week closer of City Hall, and early outs. I’m very happy that we are coming out on the winning end of this however we must be mindful of how we got there and who are the people that helped get us there.


  10. Without going into a long legal explanation, this is OUR money we are not borrowing it. We would have gotten it back by asking for it weather we were in a deficit situation or if we had a million dollar surplus.


  11. Tony I’m not complaining I’m letting the public know how this budget is getting balanced yes I’m happy that it will be, but as residents we should know how that balanced budget was reached. How Tony is that complaining?


  12. You complain if the budget is balanced and you complain if it is not balanced. All that matters is the Mayor did balance the budget and he is doing the task that he was elected to do. The State took away million’s in revenue sharing causing huge problems for many cities. I just want to say ” thank you Mayor for keeping our city afloat”.


  13. The Fiscal Cliff could change everything by cutting off federal money to cities. I wonder how much of our budget is based on federal grants and other federal dollars.


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