By Charles Sercombe
Attention Hamtramck city employees: Don’t make any major purchases for the next few months.
Acting City Manager Kyle Tertzag issued a notice last week to city employees warning them that this week’s payroll will likely be met, but it’s “highly unlikely” the city will make the April 10 payroll.
Tertzag also sent out a notice to city contractors and vendors saying they will have to wait a little longer to get paid.
Normally, bills are paid within 15 to 30 days, but now Tertzag said contractors will have to wait 30 to 45 days.
The city’s cash woes are nothing new. City officials have been scrambling to find ways to avoid a projected $3.5 million budget deficit by this June. They have asked the state to issue a $3 million emergency loan, but the state has repeatedly turned them down.
The state wants the city to first get city employee contract concessions, specifically from the Fire Department.
Tertzag said he could not get deep enough contract concessions from the firefighters’ union, and has informed state officials of the impasse.
Tertzag said he expects an emergency manager to be appointed to the city within weeks. If that’s the case, there is a good bet that the Fire Department will undergo a drastic change.
Tertzag could not discuss the details of that change.