The financial problems experienced by Ecorse in the early to mid-1980s are summarized into the following categories:

  • Declining or static revenue base with little or no actions taken by Ecorse management or Council to curtail spending patterns resulting in litigation, labor disputes and mounting deficits.

  • A severely underfunded Police and Fire Pension Plan arising from years of failing to properly make pension contributions.

  • Labor agreements which were costly. Excess personnel were on staff arising, in part, from patronage positions.

  • Accounting personnel and systems that did not provide the necessary, timely financial information upon which the Mayor, City Council and management could take action.

The above problems continued up to the decision by Judge Dunn to appoint the Receiver on December 3, 1986.