DETROIT (AP) — Detroit City Council has rejected plans for a $350 million loan to help the cash-strapped city pay off some of its massive pension debt.
|The proposal still could go forward despite Monday's vote. Judge Steven Rhodes, who is overseeing the city's bankruptcy case, is expected to make a decision later on whether to approve the deal.
|State-appointed emergency manager Kevyn Orr announced the financing earlier this month. About $230 million from Barclays would be used to fully pay off a complicated pension debt deal involving two major creditors. The rest would be used to improve basic city services and city government technology infrastructure.
|The loan would be secured with pledges of casino and income tax revenue, and proceeds from the sale of city-owned of assets that top $10 million.
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