Michigan State Treasurer Andy Dillon, who led the review, said he doesn't think Detroit should go through a Chapter 9 bankruptcy to cure its financial ailments, The Detroit News reported Wednesday.
Dillon said long-term borrowing has allowed the city to mask over annual deficits ranging from $155.4 million to $221.9 million since fiscal year 2005.
Without the borrowing, the report by the review team said the deficits would total $937 million in fiscal year 2012.
"We believe there is a financial emergency in the city and that there's no plan to correct the situation," Dillon said, adding that Detroit's problems are fixable.
Detroit's long-term liabilities, including unfunded pension obligations and retiree healthcare, exceeded $14 billion in 2012, the Detroit Free Press reported.
Michigan Gov. Rick Snyder is expected to use the report to appoint an emergency financial manager for Detroit.
Video of Victoria’s Secret models trying to 'twerk' hits Instagram
Britney Spears debuts 'Perfume' video