Republican Michigan Gov. Rick Snyder has declared a financial emergency exists in the Detroit suburb of Allen Park.
Snyder announced his decision Friday following a recommendation last month by an independent review team. The city's problems including a more than $2 million annual payment on bonds related to failed movie studio.
Allen Park could be taken over by an emergency financial manager. City officials have 10 days to request a hearing before the administration.
Other cities with emergency financial managers are Flint, Pontiac, Ecorse and Benton Harbor.
The state suspended a law that gave managers much broader powers, including tearing up union contracts. Voters will decide whether to repeal it in November and until then Michigan is operating under a previous law in which the managers have fewer powers.