Legal

As creditors prepare to vote on a plan to end Detroits $18 billion bankruptcy, the city still needs help from state lawmakers to pay its obligations while avoiding a fire sale of its fine art collection.

U.S. Bankruptcy Judge Steven Rhodes approved the citys disclosure statement and a plain language explanation of how pension and retiree health benefits for current and former city employees would change under the plan to shrink the citys $18 billion in debt.

The downgrade is the result of narrow operating reserves, below average income indicators and an elevated debt burden, due in part to retirement pensions for full-time firefighters and police officers.

Gains also are being driven by limits on cost-of-living adjustments, delayed retirement and more reliance on funding from workers.

The board of directors of the Detroit Retired City Employees Association voted to support the citys proposal that reduces pension and retiree health-care benefits, the mediators said.

The city council and public unions have agreed to delay proposed pension and pay cuts for another year after a Santa Clara Superior Court judge signed an agreement this week.