Detroit's finances removed from state oversight, returned to elected mayor and City Council

Economic Indicators Associated Press

The Detroit City Council unanimously approved a resolution to take back control of daily city operations while retaining state-appointed emergency manager Kevyn Orr to oversee bankruptcy matters until they are resolved. The action came more than a year after Orr took the city into the largest municipal bankruptcy in U.S. history and in the middle of a trial in which a federal judge will decide whether to approve Orr's plan for the city to emerge from billions of dollars in debt. Here's a look at what Thursday's vote means for various parties involved:

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— MAYOR MICHAEL DUGGAN now gets control of all city departments, including the police. Over the past few months, Orr had handed off the water department, Homeland Security and emergency management and some other responsibilities to Duggan.

— THE CITY COUNCIL can set policy, conduct its work and vote on measures without receiving Orr's approval.

— THE BANKRUPTCY TRIAL continues. Detroit's case remains in the hands of Orr and the city's lawyers. Orr's bankruptcy plan would wipe out $7 billion of Detroit's $12 billion in long-term, unsecured debt while restructuring city services. Orr, who is expected to testify at the trial, said Thursday that the city still has its "burden to prove" before federal Judge Steven Rhodes.

— DETROIT RESIDENTS likely will see no immediate changes in already improving city services.