DETROIT, MI -- The financial review team reporting to Gov. Rick Snyder on Detroit's fiscal status has determined that the city's financial emergency can't be resolved by its own government.

The ruling sets the stage for the appointment of an emergency manager.

The team is announcing the determination in a press conference at the governor's Detroit offices Tuesday.

“This review team spent two months pouring over the city’s finances, taking careful consideration of both long and short-term issues, including recent actions by the administration and City Council,” said State Treasurer Andy Dillon, a member of the six-person panel in a pre-released statement.

“While we appreciate the steps the city has taken over the past number of weeks, key reform measures have not occurred quickly enough, if at all. The team collectively believes the city needs assistance in making the difficult decisions necessary to achieve the significant reforms that are so crucial to the city’s long-term viability.”

Among a list of findings that led to the determination, the team found that Detroit's City Charter makes it "extremely difficult" for city officials to restructure operations.

Despite drastic cutbacks to city services, Detroit is facing a $327 million budget deficit and long-term debt exceeding $13 billion.

Snyder said last week he'd been vetting potential candidates for the job, and that he would move quickly once the review team submitted its report.

Detroit would join Flint, Pontiac, Benton Harbor, Ecorse and Allen Park in the list of Michigan cities to placed under state takeover.

The city has lost 1.1 million residents over the last 40 years, including 185,000 African Americans who left between 2000 and 2010.

Mayor Dave Bing and City Council, though frequently butting heads in the process, implemented dozens of reforms and dramatic cuts to employee wages and city services in over the last year in an attempt to prevent a state takeover.

But the changes, which included major outsourcing moves, health care changes, fire station closures and other desperate measures like selling scrap metal from abandoned vehicles, have proved inadequate, according to the review team's report.

A takeover would give a state appointee broad powers over city government once the state's new emergency manager law takes effect in March.

Pontiac eliminated its entire police department under its emergency manager, contracting the Oakland County Sheriff's office. Flint's emergency manger unilaterally imposed changes to some employee union contracts used the additional leverage to renegotiate others.

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The review team listed the following conditions in Detroit that led to the decision:

"The City continues to experience a significant depletion of its cash reserves. Projections estimate a cumulative cash deficit of more than $100 million by June 30, 2013, without significant spending cuts. The Review Team noted that the Mayor and Council have moved forward with some financial reforms, those changes are too often one-time savings and apply only to a small percentage of the City's overall wage and benefit burden."

"The City’s General Fund (GF) has not experienced a positive year-end fund balance since fiscal year 2004, with cumulative GF deficits ranging from $155.4 million in FY 2005, to $332 million in FY 2009. The GF deficit was $327 million in FY 2012. City officials have primarily sought to address these deficits by issuing long-term debt."

"As of June 30, 2012, the City’s long-term liabilities, including accrued pension liabilities and other post-employment benefits, exceeded $14 billion. City officials have projected that over the next five years, expenditures needed to fund certain long-term liabilities will total nearly $1.9 billion. However, City officials have not devised a satisfactory plan to address long-term liabilities."

"The City Charter contains various restrictions and structural impediments which make it extremely difficult for City officials to restructure the City’s operations in a meaningful manner. Restrictions include extensive steps and timeframes which must be observed before any proposed changes in future retirement benefits may be implemented and provisions which make it all but impossible to reorganize and enhance the delivery of municipal services."

Related:

- Review team 'paints a grim picture' about Detroit's finances in report

-A look at New York's 1970s turnaround paints bleak picture of what could be ahead for Detroit

-Gov. Rick Snyder looks at potential emergency managers as Detroit reports financial reforms

-National expert: 'A magician' needed to fill Gov. Rick Snyder's Detroit emergency financial manager job

-Detroit emergency manager should be a local, state representative says

-5 striking things Detroit Mayor Dave Bing said in his State of the City address

-Dave Bing's State of the City speech: Will Detroit mayor make case to stay, or prepare for handoff?

Follow Khalil AlHajal on Twitter @DetroitKhalil or on Facebook at Detroit Khalil. He can be reached at kalhajal@mlive.com or 313-643-0527.