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Detroit rejects funds, will the city be out of cash by Christmas?

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"It will be more difficult for the city to maintain its liquidity until the receipt of property tax revenues beginning in January. Today's vote is one more example of how city council has stalled our efforts to bring financial stability to the city of Detroit," the mayor said in the statement.

Detroit has struggled with its finances for many years as the city's population has dwindled and the automotive industry that once drove economic activity in the Motor City has diminished.

The city of 700,000 has been criticized by state officials for slow progress on financial reforms. It needs the money to avoid running out of cash by the end of the year. The Michigan Finance Authority raised $137 million for Detroit earlier this year through a debt sale. While Detroit received some of that money, Michigan Treasury officials tied another $30 million to Detroit's progress on reforms.

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