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.