STANDARD & POOR�S REMOVES NEGATIVE OUTLOOK ON DETROIT

DETROIT � Standard & Poor�s Ratings Services� today removed the negative outlook on the City of Detroit crediting the change to the tenacious efforts by the Kilpatrick Administration to regain structural balance by negotiating historic healthcare concessions, reducing overtime spending, and increasing revenues.

��Standard & Poor�s Services� feels the City has a better handle on its overall financial health and ability to reach the longer term goal of structural balance�City staff worked diligently�and has achieved significant progress in many areas��

�We weren�t supposed to be here right now,� said Detroit Mayor Kwame M. Kilpatrick reacting to news. �Just three years ago everyone was counting us out. If you listened to the pundits we were supposed to be in receivership by now.�

S&P acknowledged Detroit�s operations have stabilized enough to result in a break-even financial performance and a projected reduction of the accumulated general fund deficit.

�Our Administration took the necessary and often unpopular steps to stabilize our finances knowing that it would pay-off for our city down the line,� Mayor Kilpatrick continued. �This is the best Christmas present a Mayor could receive.�

The positive credit factors sighted in the report include:
● A dedication at all levels of city government to eliminate the general fund deficit by fiscal year-end 2008;

● Progress toward the goal of reining in expenditures to achieve balanced operations and add to the fund balance to bring the unreserved general fund balance back up to zero;

● The development of internal policies and controls to provide greater efficiencies and an enhanced ability to adjust to revenue and expenditure fluctuations over the long term, as well as the creation of five-year financial forecasting to identify needs and goals over time. This appears to have led to fewer budget variances; and

● Substantial investment in the city in recent years by both the private and public sectors that has led to improvements in the city's livability standards.

At the direction of Mayor Kilpatrick a group of city officials lead by Deputy Mayor Anthony Adams went to Chicago on Tuesday to meet with S&P officials to present Detroit�s financial transformation.