Matt Helms

Detroit Free Press

Wayne County is in a critical part of its financial recovery but is doing significantly better than it has in years, Wayne County Executive Warren Evans said Tuesday in his State of the County address.

"We're fiscally healthier than we've been in a long time and I'm committed to continuing to make the tough decisions that will make us, and then keep us, financially strong," Evans told county leaders and others at the invitation-only event at Dearborn's Ford Community and Performing Arts Center. "But the challenges ahead remain significant. They require continued commitment to fiscal responsibility."

Laying out an emphasis on steady improvement to the county's financial outlook, Evans said his administration would be focused on keeping expenses in check and using any budget surpluses wisely. He also said the county's emphasis on economic development will take a "back to basics" approach that helps existing businesses thrive through means including improving county roads and other infrastructure and other public services.

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Evans noted that, while the county posted a surplus last year and expects a larger one this year, it's no time to celebrate. He said that chief among the county's tasks is to finally put the issue of the stalled Wayne County Jail behind it. The idled jail project costs the county more than $1 million a month factoring in bond interest, site security and other issues.

County leaders are analyzing whether to accept an offer from Dan Gilbert’s Rock Ventures to build a $420-million new jail, criminal courthouse and juvenile detention center near I-75 and Warren Avenue.

Gilbert and fellow billionaire Tom Gores, owner of the Detroit Pistons, hope to build a Major League Soccer arena at the current Gratiot Avenue jail site, with Rock also proposing a hotel, residential, entertainment and retail developments of about $1 billion for the east side of downtown.

Wayne County would pay Rock $300 million – the estimated cost of completing the stalled jail – and Rock would build the new criminal justice complex, sharing in potential cost savings from running a consolidated facilities. The county has hired consultants to determine whether the proposal would meet the county’s needs, protect taxpayers and not endanger the tax exemptions on bonds the county floated to pay for the jail.

Evans said the negotiations are ongoing, but he said it’s clear now that the county remains closer to ultimately finishing the Gratiot jail site than the Rock proposal.

“The Rock proposal is going to have to get better and move faster,” Evans said. “Rock has a lot to do to meet our timetable. This isn’t posturing, or hyperbole, and it’s not anti-soccer. It’s just where we are today.”

While the county's financial health is better, it still has outstanding liabilities exceeding $1 billion in retiree pensions and health care, despite slashing the obligations by more than $1 billion while the county was under state oversight with a consent agreement enacted in 2015. The controversial reductions angered employees and unions who say they’ve borne the brunt of the county’s cost-cutting, but the cuts helped the county improve its pension funding from 45% to 54%, Evans said.

Evans said the cuts employees took — including 5% salary cuts to his appointees — have made it more difficult to attract and retain quality employees, and he said he’s committed to rectifying that.

The county emerged from the consent agreement in October, with a budget surplus of $35.7 million. This year, the county is projecting a $44 million general fund surplus of $44 million. The county plans to use the surpluses to pay down debts and shore up cash reserves.

Evans also took a swipe at the state’s system of local government. He said municipalities across the state are hurting, and the state continues to solve its budget problems “on the backs of local government.” Evans, who has toured the state to discuss local government funding, said the state has cut $7.5 billion in revenue sharing since 2002, an issue he said could “push many municipalities to the brink of bankruptcy in the coming years.”

He called on the state to rectify shortfalls in the state’s property tax system that make it difficult for local governments to recover from major losses in real-estate values, provide a load fund for local governments to manage pension and retirement costs and ensure the state is following the legal requirements for funding local governments.

Evans also said part of Wayne County’s strength is its diversity and how it welcomes immigrants, citing Dearborn and other communities as area where immigrants make important contributions to economic and civic life.

“These divisive times are going to test us,” he said. “But I believe we are up to the challenge.”

Evans called President Donald Trump’s immigration bans on people from mostly Muslim countries “reckless.”

Commission Chairman Gary Woronchak, D-Dearborn, said he appreciated Evans’ strong statements in support of diversity and immigration in the county, saying Wayne County “is symbolic of diversity. If you wants to see how diversity works, look to Wayne County.”

He also said Evans struck the right tone about the county’s finances.

“He had a good story to tell,” Woronchak said. “He made a lot of tough decisions. The commission’s done its part. We have come a long way in a relatively short time financially.”

Contact Matt Helms: 313-222-1450 or mhelms@freepress.com. Follow him on Twitter: @matthelms.