We'll ask for a motion to approve the minutes.

Members have been provided the minutes from last meeting.

Is there a motion to do so?

Motion.

Hearing no objections.

That action shall be taken.

Welcome back, everyone.

Back from recess.

As we take care of the people's business.

We have a pretty lengthy agenda today.

Just a lot of reports, but uh we will get through it nevertheless.

Uh we'll go directly into public comment.

Uh I think I see one member of the public here, Mr.

Foster.

If you can please step up there.

Uh if you are joining us virtually and wish to participate in public comment, please uh raise your hand via the Zoom feature.

Now each member of the public will have two minutes for public comment.

We ask you to state your name for the record uh and proceed.

Uh good afternoon, Mr.

Payne.

Good afternoon, Mr.

Chair.

We'll go to Mr.

Foster, but how many callers do we have online?

We have four uh attendees that have raised their hand.

Okay, we're getting ready to cut off public comment.

Public comment going once, public comment going twice, public comment going three times.

Public comment is now closed.

So we'll go to Mr.

Foster first and go to virtual public comment.

Good afternoon, Mr.

Foster.

You have two minutes for public comment.

Please state your name for the record and proceed.

Good morning.

Um is Ronald Foster.

Um through the chair.

Just wanted to speak um very briefly on, you know.

This is a legislative body.

The legislative body has the ability to reappropriate funds, move them around and do what's needed.

After such a long summer, we have a full police force here that's been high, spent a lot of money to have a full police force.

Have all these plants and different things, but yet our children have suffered over this summer.

I think it is time that we reconsider spending all of our money with law enforcement and corporate counsel offices and start to reappropriate that money into more preventive measures in this community.

Um this community has sat by and allowed government to do things their way.

Their way of not proven to bring abund the results that community would like to see.

Twenty to forty kids over a summer when um shot and killed in in the city is unacceptable.

It's even more unacceptable when a community come in and advocate for more support in the parks.

When we look at everything that happened here, majority of those instances occurred in parks.

It's not that you guys didn't hear it or not aware of it, it's that it was being dismissed.

It's the arrogant attitude or mentality that we know what's best.

Mr.

Foster, really quickly.

Mr.

Payne is uh is our clock okay now?

Okay.

Uh Mr.

Foster.

That mentality has to change.

You don't know best.

And I think the blood in the streets with these children articulate that you don't know best, and you have to try something else.

Uh preventive measures, community.

There's plenty of communities that are being neglected outside of these appropriated CDI areas that you guys determine um where support needs to be.

These type of perceptions have to change, man.

You have to listen to the community, each and every last person.

You have to accept free speech, which means people can say things that you don't like.

They could talk about you, they can say things about the mayor.

It is not upon this body or any other government official to infringe upon free speech, not through court proceedings, not your cases, not through arrests or anything else.

And I ask this budget committee to reappropriate funds and put them where it's needed in this community.

Thank you, Mr.

Foster.

All right, seeing no other member uh of the public here in the committee of the whole, we'll go directly to virtual public comment.

How many hands do we have now, Mr.

Payne?

Is it still four or did we pick up a few before I cut off public comment?

Again, um, good afternoon, Mr.

Chair, honorable committee members.

Yes, we did pick up one person.

We now have four public commenters.

Or five, five, I'm sorry.

Thank you, Mr.

Payne.

And who is our first caller?

Mr.

Chair, our first caller is William M.

Davis.

Mr.

William M.

Davis.

We'll restart the clock, and you'll have two minutes for public comment.

Uh we are still waiting to restart the clock.

Just bear with us.

Is the clock frozen, Mr.

Payne?

Is it resetting?

Yes, sir.

It's frozen on my hand.

One second.

And bear with us, Mr.

Davis.

We are getting this clock straight and we'll come straight to you.

No problem.

All right.

All right, there we go.

Mr.

Davis, you have two minutes.

Please state your name for the record and proceed.

William M.

Davis.

Can I be heard?

You may, sir.

Okay.

I like to start off by saying that I'm sure you're gonna mention it, but uh I'd like to invite everyone out to the City of Track Retire Task Force meeting this upcoming Friday from 11 to 1230, uh in person at the 13th floor auditorium, and also via Zoom.

Uh I also like to invite city retirees that may be available to come to my Detroit Active Retired Employee Association meeting this evening from 5 30 to 7 15 at uh Saint Martin St.

Joseph Episcopal Church and Woodward and King.

Uh, we're gonna be discussing what we might hope might start developing in this upcoming Friday's meeting.

Uh, also I think it should be a greater effort by the city to do more to help City Detroit retirees at the very least.

They could uh retroactively eliminate the interest in the clawback because City Detroit retirees this whole financial recovery has been on our backs, you know, especially the general fund retirees, you know, in that we took a four and a half percent pension cut.

We lost our cost of living retroactive back to 2013.

Uh, and many of us got an annuity claw back, which was like 15.5 percent.

You know, so total it's like 23 percent that we had that we that was cut from us.

Uh, we lost our medical care, we lost a whole lot of benefits, and at the same time, the city has been giving away millions and millions of dollars to millionaires and billionaires.

You know, something needs to change.

You know, if you could call back from city retirees, you should be able to call back for some of these projects that didn't meet what they said they was gonna do.

Thank you.

Have a good day.

Thank you, Mr.

Davis.

Next caller, please.

Mr.

Chair, our next caller is owner Papa.

Owner uh owner Papa.

Orner Owner Papa.

You have two minutes for public comment.

Please state your name for the record and proceed.

Caller, are you there?

Caller, are you there?

Okay, going once.

Going three times.

Mr.

Payne, please stick that caller to the end of the queue.

Next caller, please.

Our next caller is iPhone.

iPhone, you have two minutes for public comment.

Please state your name for the record and proceed.

Good after.

Good afternoon to all within the sound of my voice.

It's Betty A.

Varner, president of the Soda Ellsworth Black Association.

And here advocating for my um community, neighborhood, and my association as usual.

I want to say that uh donations can be made to our association in regards to our um mission to get landscaping boulders for our park where our um fence has been stolen.

You can donate by going to D E B A W E B S M Boy E L at Gmail.com again.

That's D E B A W E B E L at Gmail.com.

If you have my phone number, you can also donate by using putting in my number, and this would be for Zale.

Again, this would be for Zale.

I want to share the good news that we have closed the deal on the uh parts, the addition of bacon lots.

We have purchased from the land bank to expand our park.

So uh we're going to be working on get getting some trees removed from the park.

The uh plan is to have landscaping, um equipment, and more benches and chairs, places for people in the community to be able to relax, have fun, a place for our children to play.

Uh we were interviewed.

My event coordinator with uh our organization was spotlighted yesterday on the channel for news.

It was a good interview.

If you missed it, please uh go to their link and check it out.

Uh very informative.

Thank you for this time.

God bless you all.

Thank you, Miss Werner, and thank you for all you do.

Next caller, please.

Mr.

Chair, our next caller is Cunningham.

Brother Cunningham, you have two minutes for public comment.

Please state your name for the record and proceed.

Brother Cunningham, are you there?

Hello, everybody.

Uh 10 seconds was pulled off.

313 444 9114, 313 4449114.

313 444 9114.

That number was made so you can remember it.

And that is also my cash out.

I want to thank um uh Denzel, who's running uh for city council uh for donations and many others that have donated and the church, um uh St.

Phillips, Lutheran, Detroit, all the bus tickets.

Um, thank you, and the finances.

Um I'm trying to maintain the vehicle, give out bus tickets, um ice water uh in our community.

Um people really really need those bus tickets, and I appreciate those that have donated.

Um I always remember no weapon formed against me shall prosper.

Any time they rise up in judgment, thou shalt condemn.

So I just know that God has me on his side, no matter who comes against me.

Um, the mayor really should give a longer notice with a flyer.

Um tonight's meeting is D3 Charter Meeting, Solomon's Temple Church, 2341 East, seven mile road.

I do want to thank him.

It's from 7 to 8:30, by the way, tonight.

I do want to thank him because last meeting I asked that he have a voicemail on his phone number 313-224-3400.

He now has a voicemail, and the people that I have had call the office have been able to get through during business hours and speak to someone.

So little people with little suggestions and little ideas.

Um, they listen to.

He's on his way out, moving to other things, but fight about public transportation.

It needs to improve.

Call his office, tell them that.

And the drivers and the mechanics need more money and a contract.

Thank you.

Thank you.

Next call.

Mr.

Chair, next caller is not that counting.

Not that Karen, you have two minutes for public comment.

And we can mute Mr.

Cunningham.

I still hear on the background, Mr.

Hello.

Not that Karen, you have two minutes for public comment.

Please state your name for the record and proceed.

Yes.

Uh not that Karen here.

Um, thank you for taking my call.

Um, I was a little late, Logan, and I wasn't sure if I was gonna be allowed to participate or not, but thank you for the opportunity.

Um, yeah, um, I agree with everything that Mr.

Davis said about the city of Detroit retirees.

We're still at the same financial level that we were at right after the bankruptcy, even though um inflation has taken prices off the shelf.

Where the normal person can't afford most things that they need to have just to survive in in the city.

Um, so I will be at the retirees meeting tonight, and I'm gonna try to attend the one at the um larger meeting on Friday, if nothing else, then by Zoom.

But um, we we do need to try to find a way to help these most of the retirees are senior citizens.

Um, probably mostly all of them are senior citizens, so you would be doing a service for not only the people who serve their time for the city, but also for senior citizens, which you know they the Bible tells you to look out for old people and for babies, and that's also just word of mouth in the street.

So we should look do both of those.

Now, um, councilwoman Callaway, she spoke today on the Bagley neighborhood, which I've owned a home property in for 30 years, and I've never ever, even though it's supposed to be enterprise zone.

I've never gotten the documentation, uh, the paperwork from the city assessor's office to prove that this is uh my taxes should be reduced because this is in the uh enterprise zone or empowerment zone, one or the other, or probably possibly both.

I'm not sure because I haven't gotten the paperwork, even though the city um takes my tax money in half of 30 years.

I've never had the benefit of them, you know, getting the um the bait net mic, the prop the big billionaires do.

Thanks for taking my call.

Bye-bye.

Thank you.

Next caller, please.

And we're coming back to owner Papa.

Caller, you have two minutes for public comment.

Please state your name for the record and proceed.

Uh, good afternoon, Carolyn Hughes.

May I be heard?

You may, ma'am.

Thank you.

Uh, I agree totally with uh not that Karen and uh Mr.

Davis.

We are doing a disservice to our retirees who took a great bad uh a huge chunk out of the problem out of the monies that went to the bankruptcy.

Um I I under I I see that in 5.3 we have an ordinance that you all pass ordinances before you get the fiscal impact statement, and this is a negative impact to our 2027 um budget.

You this is the budget committee, and these things should not be coming to uh to be voted on if they're gonna have a negative impact on our budget.

Um I'm I'm in a grin with the first young the young man who comes down to the city council all the time and talks to you about how we're spending our money.

You cannot police your way out of our problems, and spending this amount of money on our police budget is absolutely ridiculous.

It's not solving any of our problems.

Our city is getting worse and more violent, and I notice that we have lots of legal representation and um and demifications on the agenda, as always.

Nothing has changed, but that needs to change, and it can only change if we make it change.

We are in control of the police department, we pay their salaries, and we should have some say-so and what they do.

What they are doing is not helping this community, and he says we need more representation of the police department at our park, so we don't have these children uh being killed and injured at our parks, but we spend all of our money in downtown and other areas um of people who really don't live here, but the citizens who pay these officers money don't get the same recognition.

Um, I'm a little tired of seeing uh negative fiscal impact statements coming through and this committee and this body approving them.

And when you do, and the city goes into bankruptcy, we'll know just who to sue.

Thank you.

Thank you.

Uh Mr.

Payne, does that conclude public comment for today?

Mr.

Chair, that concludes public comment.

All right, great.

Thank you.

Next, we'll move to unfinished business.

We'll go to line item 5.1, status of the Office of Contracting and Procurement Contract Number 600 3758-A2, 100% ARPA funding, amendment two to provide an increase of funds for needed assistance and strategic guidance for grant compliance.

Contractor ACOM Great Lakes Incorporated total contract amount 21 million eight hundred and seven thousand nine hundred and fifty-six dollars.

This is for the Office of the Chief Financial Officer.

Uh and just to note the contract increase amount that we are looking at today is three million eight hundred thousand dollars.

Motion to discuss line item 5.1.

Motion.

Hear no objections, that action shall be taken.

We should have Terry Daniels as well as Sonia Clifton joining us today.

Mr.

Chair, Sonia Clifton has been promoted to panelists.

Thank you, Ms.

Clifton.

You'll turn your camera on, please.

Good morning, Sonia Clifton, Office of Contract and Procurement.

I saw you uh Ms.

Clifton.

Can you please tell us a little bit about this contract and the need for the increase?

So this contract for our compliance services, eCOM.

This is for ARPA.

This was requested by the Office of the Department of Clients.

Um, while I pull up the information, if we may be able to contact perhaps Terry Daniel.

Okay.

Uh is Ms.

Daniels on the afternoon, Mr.

Chairs.

I'm sorry, Miss Daniels.

You see, you know what?

I I've I'm like I saw you in the audience, and I'm sorry, you snuck up on me right there.

Uh good afternoon, Ms.

Daniels.

Uh, please state your name for the record or proceed.

Carrie Daniels, Deputy CFO, Office of Development Grants.

Yes.

So this contract with AECOM is an existing contract.

Um, we are adding another 3.8 million to take us through the end of uh through the first quarter of 2027.

Um as you know, uh they have been helping us with our grant compliance and reporting, um, assisting us in being audit ready for not only our single audit but also any audits that Treasury may come in and and perform on the city.

Um this help is crucial to maintaining our compliance and making sure that we're averting any risk of having to pay back any of these ARPA funds.

Okay.

Uh any questions from members?

Chair recognizes member Santiago Romero.

Thank you, Mr.

Chair through you.

Good afternoon.

Um, just wondering, is it additional three million for additional work found to complete current work?

Can you just share a little bit more about why we're adding uh through the chair?

It's it's a little bit of both.

Okay.

Um, there is some additional work that we need done.

Um Treasury, we ref we received information from Treasury that they were going to be um providing a little more scrutiny on um recipients um of ARPA funding, just ensuring that we were using the correct expenditure codes, um, just kind of really digging down, and so we felt it would be prudent that we would um have some extra resources to make sure that we are um audit ready when they do come because we we we can't afford to pay any of this money back.

Um, and I will say that over the last four years we have not had any findings or any question costs in any of our audits.

Okay, uh chair, thank you.

Um, and just wondering 21 million dollars.

Um just sounds like a lot of money in general.

We received over 800.

Um, so just wondering, is this usually what it costs then to be in compliance?

Um I can't think of fractions right now or like what this equates to, but I think you understand what I'm asking here.

I do three chair.

Um it's a little under three percent.

Okay, thank you.

Um, and the ARPA programming, you know, it was it was rushed out.

It was you know it was responding to an emergency.

There weren't a whole lot of um, there wasn't a whole lot of guidance.

Um, so we had to hire consultants to help us kind of weed through um other municipalities hired consultants.

Um, and so we felt it was it was best that we would but do the same thing.

Um so we've had consultants on other projects, and when you break that down to almost seven years, um uh over the 21 million dollars.

It's it's it's pretty on the mark.

Okay, thank you.

Thank you, Mr.

Chair.

Thank you, Member Santiago Romero.

Uh, any further questions?

Okay, seeing none, uh I have had my questions answered.

Uh is there a motion to send line item 5.1 to formal with a recommendation to approve.

Motion here, no objections, that action shall be taken.

Thank you, Ms.

Daniels.

Good to see you.

Uh as well as you, Miss Clifton.

Have a great day.

You as well.

Next, we'll move to line item 5.2 status of council member Mary Waters submitting a memorandum relative to uh the analysis of the fiscal impact of the big beautiful bill.

Uh we assigned this to LPD to LPD.

I know we were bringing this back.

Uh chair recognizes you, Mr.

Corley.

Thank you, Mr.

Chair.

Good afternoon, City Council.

Welcome back.

Um waters assigned this to us uh back in July, and we need another month, and we will also like to coordinate with the uh Office of the Chief Financial Officer.

Um if you can also assign this to them as well.

We talked with them um yesterday, and they agreed to um help us with this item.

Well, bring it back in a month, that'd be great.

Thank you.

Um Mr.

Corley, I thought we did that at the beginning, but I'll just double check and make sure that we did.

Is there a motion uh to uh assign line item 5.2 uh to LPD, any office of the chief financial officer and bring back in one month?

Motion objections, that action shall be taken.

Uh next we'll move the line item 5.3 status of the office of the chief financial officer slash officer budget, submitting a report for the fiscal impact of amendment to chapter 31 of the 2019 Detroit City Code of Offenses Article 1, generally by amending section 31-1-1, misdemeanor violation, continuing violation penalties for conviction thereof.

Uh, for my understanding, this report has been sent out on the 30th of June and be and received.

Is there a motion to receive and file line item 5.3?

Motion.

Here no objections, that action shall be taken.

Next, we'll go to line item 5.4 status of council member Scott Benson submitting a memorandum relative to request for Detroit Public Library EPL Foundation information.

Motion to briefly uh briefly discuss line item 5.4.

Motion.

Thank you.

Two LPD.

I know we've had this one for quite a while.

Um, do we need more time on this?

Um, Mr.

Chair, yeah, thank you.

Um I reported back in July that this um Detroit Public Library Foundation is in involved in a legal matter and don't have specifics to that.

And so please bring it back next week.

I'm waiting to hear from um the CFO at the library to get more information.

So we can bring it back in a week.

Hopefully, by next week, I have more information for you.

Okay, is there a motion to bring back let's let's do two weeks.

Uh is there a motion to bring back line item 5.4 in two weeks.

Here are no objections that action shall be taken.

Next, uh on to new business from the Office of Contracting and Procurement Line Item 6.1 submitting a resolution of authorization for contract number 6007 368, 100% city funding to provide auditing services.

Contractor, plant moran, PLC, total contract amount, nine million two hundred and thirty-nine thousand dollars, and this is for the auditor general.

Uh and also uh members, we can take up line item six point two as well, which is submitting a resolution of authorization for contract number six zero zero seven three seven zero, one hundred percent city funding to provide auto uh auditing services uh for a comprehensive uh annual financial report.

Contractor uh plant moran uh total contract amount for this one is three hundred and seventy thousand dollars, and this is for the OCFO motion to discuss line items six point one and six point two.

Motion here no objections that action shall be taken.

We should have Mr.

Jones joining us for the first contract line item 6.1, Mr.

Naglik or Mr.

Jones joining us for 6.2, but something tells you Mr.

Jones can handle both of these.

Mr.

Chair, Mr.

Jones has been promoted.

We also have the deputy auditor general Mark Lockery in the in the uh lobby as well.

Okay.

Chair recognizes you, Mr.

Nailick neglida uh neglig.

I'm sorry, if you can state your name for the record as well as Mr.

Jones, uh yes, John Negler, Chief Deputy CFO and Finance Director for the City.

Hi, Chris Jones, uh Office of Contracting and Procurement.

And I will uh relay this over to Mr.

Nagley who will handle the question for this.

Thank you.

Yeah, I'm um um Mr.

Chair.

I believe um um Deputy Auditor General Mark Lockbridge may be also on.

I don't know if he's been promoted to a panelist.

I can certainly speak to both items, but I wanted to defer the auditor general if he was on.

Yeah, Mr.

Negley, he's here in person.

Uh good afternoon, Mr.

Deputy Auditor General.

Please state your name for the record.

Uh your microphone right there, uh, and then proceed and just give us a brief overview of these contracts.

Oh, certainly.

Um, my name is Mark Lockridge and the Deputy Auditor General.

Uh welcome back to the chair and members.

Um this is for the um the the audit of the um act for the annual comprehensive financial report, also for the single audit, also for the water fund, the sewage disposal fund, and the Detroit Department of Transportation.

Um Plant Moran was awarded this contract.

We had uh three um three in uh companies that um put their bids in.

Plant had the highest score.

Um this is for five years, is for fiscal years ended 2026 through fiscal year um 30.

Um the total amount, of course, 9.2 million dollars.

Um plant also um plant moran also kind of their pay schedule is um hasn't changed much from the last five years.

You know, you know, plant's been a great partner for us uh overall.

Uh they took concessions during um the COVID when the COVID uh was initiated.

Um and as you probably know, um, also in this area, um, you know, there's only there's only been three um there's only been three contractors to have ever um audited the city's books um over the last 50 years.

So um, but there are a couple of entities that are um raising up, you know, plant is uh was considered a regional firm and used to have the big six public accounting firms do our audits uh plant um has specialized in government accounting.

Um and so you know they won the bid handily.

Um so we are uh pleased with their work.

Yes.

Okay.

Any questions from members.

Um Mr.

Chair, if I might.

Um the reason there's I wanted to comment on why there are two contracts.

Um under the city's charter, the auditor general is charged with auditing the city's accounts, and so the audit contract has always been in the time I've been here at the city, a contract that is the auditor general's contract.

The smaller contract that's 370,000 for the same five-year period is the OCFO um has our auditor prepare the ACFR.

It's over a 300-page document, it requires specialized word processing software, and they also prepare the um financial statements for uh Detroit Department of Transportation and um and Detroit Water and Sewage Department.

So the smaller contract is under the OCFO's budget because they're actually preparing the financial statements um once they complete the audit.

And as Mr.

Lockridge indicated, um it had been 10 years, so the auditor general um felt uh obligated and I agree that it was time to put it out for bed.

And uh I worked with Mr.

Lockridge and Ms.

Goodspeed, those are the three of us were the evaluators along with with uh Chris Jones from procurement.

So we were the four evaluators and you know went went through the proposals and and came to the conclusion that we would recommend um a new five-year contract for plant moran.

So I just wanted to add that to describe why there were two contracts, sir.

Thank you.

Any questions from members further?

Okay, seeing none.

Is there a motion to send line items 6.1 and 6.2 to formal with a recommendation to approve?

Well, okay.

Here, no objections, that action shall be taken.

Thank you very much.

Mr.

Naglik.

Thank you.

Uh thank you, Mr.

Lockridge as well.

Good to see you.

Uh, under the office of the chief financial officer, we'll move to line item 6.3, submitting a report relative to the financial report for the 12 months ended June 30th, 2025.

And uh is there a motion to discuss line item 6.3.

Motion.

Hearing no objections, that action shall be taken.

We got Mr.

Johnson joining us and members.

Uh looks like we're gonna have Mr.

Johnson for the next few items.

Uh if we can also take up line item 6.4, which is submitting a report relative to large events reporting April through June 2025, quarter four of fiscal year 2024-2025.

Also, 6.5.

Uh well, actually, no, we'll stop there.

We'll just take up line items 6.3 and 6.4.

Is there a motion to do so?

Both and no objections, that action shall be taken.

Mr.

Johnson, good afternoon to you, sir.

Uh, please state your name for the record and proceed.

And after you get done with 6.3, we can just go right and directly into 6.4.

Understood.

Thank you, Mr.

Chair.

Um uh uh Mr.

Chair, members of the committees, welcome back.

I'm Donnie Johnson and I am the acting deputy CFO and budget director for the city.

I am also joined in the waiting room is Valerie Agoie.

If Mr.

Payne could uh promote her as well, she'll do the revenue and treasury portions of the presentation.

Um and she is our um acting treasurer.

So I'm going to share the presentation.

Oop.

Uh and if Mr.

Payne could enable sharing for me, that would be great.

All right, Mr.

Payne, if you could grant sharing capabilities, please.

There we go.

Um thank you.

Um you should be seeing the um monthly financial report.

Uh so we are here to present.

I'm here to present the um monthly financial report uh for the 12-month period ending June 30th, 2025.

So this is the report for the entire year of fiscal year 25, which is the year uh for the public's benefit.

This is the fiscal year that we ended on June 30th of this year.

Um, and so this is the last month, uh the last report um within that fiscal year.

So uh because June is the last month of the fiscal year, uh, the June year to date budget uh is and the actual um the budget versus actuals report is combined with our annualized projection report.

Uh this report will modify is modified to provide an estimate of the ending unassigned fund balance, which we currently estimate to be $60.2 million.

Um in you know, lay terms, that simply means a surplus that we think we're gonna have from 25 fiscal year 25 is $60.2 million.

However, I do want to caution both this committee and the public that these results are still preliminary, they're unaudited, and they do exclude material year-end accruals that are anticipated that come later in this adjustment period, including income tax adjustments, employee benefits, true-ups, and other unrecorded expenses.

So we're giving you a snapshot of where we think we are right now, but there are still a number of months left before we officially close fiscal year 25.

So adjustments and changes may occur um uh uh over the course of this adjustment period before we close the books.

So the June period um was pretty good.

Um, for the month of June, we were um ahead on revenues and we were under on expenditures.

So on the whole, we in the month of June for that one month period, we were in surplus by 38 million dollars.

And then if you look at the year to date, it is a different story.

So um at this time, we are on track for fiscal year 25 to be 8.8 million dollars under our budgeted revenue target.

Um, so we are we are seeing a small shortfall in our revenues for 25.

Um again, these are unaudited numbers.

So adjustments and other things may occur as we get through the adjustment period.

So this may improve um uh as we move through the adjustment period.

In expenditures, we did we did underspend um pretty substantially.

So, you know, even with a small shortfall in revenues, we underspent by 133.2 million.

So that leaves us in a year, uh a year um long state of about 124.4 million uh to the good in surplus, um, just in terms of the budget.

For our annual line budget projections, and this is where we kind of do our best to project where we think the final numbers will land in all of the various categories.

Again, just a projection, uh definitely subject to change as we um get closer to closing the books.

But we are currently believe that we are going to end fiscal year 25 under on revenues by about 7 million dollars.

So missing our revenue target by about $7 million.

Um, I'm gonna we'll get into that more on revenues with um uh you know uh treasurer goalie, but um uh we do that is primarily driven as you can see by um municipal income taxes.

However, our waging wagering taxes, uh wagering tax revenue was considerably higher than we expected.

So that really helped kind of make up a little bit of that uh difference in the revenues on the expenditure side.

Once we forecast where we think the adjustments and what we call accruals are going to occur, and accrual is just an expense that we, you know, we've gotten the invoice now after June 30th, but we have to book that expense to the previous fiscal year was for good or service relieve in that year.

And so over the course of these months, we do these accruals.

When we project what we think the accruals are going to be, we think we're still gonna be about 69.1 million to the good in terms of our expenditures that we will underspend the overall budget for fiscal year 25 by the 69 million dollars.

So once you take that into account, um, and then we have a small adjustment that has to be done to the books related to the retiree protection fund.

That is how we get to that 60.2 million dollar number for the unassigned fund balance, the expected true surplus for the city.

Um again, subject change.

We could have tax adjustments that come in and move that number up.

Um, and so you know, we are waiting to see what happens over the next few months.

Uh no real changes to this slide.

This is still fairly status quo.

There were no um uh changes in the continuing appropriations.

Uh we ended the year pretty much as expected there.

And then this slide is um so our head count, uh employee count monitoring uh from the May, May monthly report to the June report.

Um, sorry, I keep having to cast my mind back to June because we're now in September.

Um, the May to June changes, we saw an increase in uh the largest increase was in the police department.

We had pretty solid success with um a couple recruit classes, and so we were able to fill a number of the remaining vacancies there.

And and at this stage, the police department is pretty much fully staffed.

We're very close to fully staffed on police.

Um, and that's been you know, I know a labor of love for HR and the chief.

Um, and so we're finally there.

Um, another big change you're gonna see in here is the decline in transportation.

Again, as I've noted before at previous uh meetings of this committee, this is really driven by the churn in our students.

So because we need to keep enough drivers to operate the system, we are currently in the process of bringing more people in through the training programs to be bus drivers, which means that necessarily the the proportion of people who don't make it through that training, they're rolling off the books on this on this monthly or um every few months.

So this was really um driven by that training class, and you know, folks from a few of the training classes that just didn't make it through to drivers.

We um did not lose a substantial number.

I think TEOs, I think it was just a couple.

Um so it wasn't active current drivers, it really was TEO students.

Um, and then seasonal increases.

There was an increase in GSD on seasonal staff from the um previous month.

And that's just you know hitting that peak of um the recreation season.

So recreation programming hitting its peak and getting everybody on board to do all of our summer programming.

Um and then interns, we you know got all the interns on board and staffed through this period of time.

So those were the two, those were the big um movers and shakers in the employee count.

On the whole, as you can see at the bottom, um, we did have an increase in the overall city head count um by 105 FTEs.

And that leads me to the next slide, which is I'll pass it over to um Treasurer Goliath.

Uh Treasurer, I think you are muted.

Okay, can you hear me now?

Excuse me.

Yes.

Good afternoon.

State's your name for the record.

Yeah, I am Valeria Goli.

I am the deputy treasurer for tax administration in the OCFO's office.

Um, this page is uh um represents income tax collections.

As you can see, there is a reduction this year, um, June 2025 compared to 2024, primarily for corporate income taxes.

Currently, those amounts are um 13 million less than what we saw last year.

I do want to point out though that for corporate income tax, um the uh the um amount won't be final until October 15th, at which time we'll do an adjustment.

Uh the reason for that is many large taxpayers um file extensions, uh corporate income taxpayers to October 15th.

Um so we do know that estimated payments from corporate income taxpayers were lower.

So we are unsure if any of the carry forwards that they have will be used to pay their tax year 24 liability or not, and that's something that we just have to wait until October 15th to see.

Um, if they do, then that that would change what's recorded for fiscal year 25.

Um, and if they don't, it would impact uh FY26.

I'll go back to the top.

Withholding is higher at this point compared to last year by approximately 9 million.

The individual line includes individual taxpayers and compliance and collections.

So individual taxpayers, if you break it out, about 24 million of that is attributable to individual taxpayers.

And that was for fiscal year 24 for fiscal year 25, about 27 million is attributable to individual taxpayers.

That's an increase of about 3 million.

Where we do see the decrease from year to year, though, is in compliance and collections.

And that amount is approximately 8 million less than the prior year.

So corporate income tax.

I did go over, I do want to remind everyone that our revenue estimating conference is September 22nd.

Our team is working hard to look at the projections for corporate income tax, both the impact on fiscal year 25 and for the future.

It's something that we are looking at in terms of reduced profitability and how that might income impact our corporate income taxes.

This is our cash position.

Under general accounts, you'll notice that compared to the prior year, it's lower.

And the reason for that is our state revenue sharing payment, which normally is received in June wasn't received until July of this year.

And then the retiree protection fund is tracking.

We are making the quarterly payments as required.

And as I've talked about before, you know, we always we see the decline compared to last year of ARPA dollars.

That is attributable to us spending those funds.

And that's pretty much all I have for that slide.

So this is operating cash activity.

Our cash position remains strong.

There's not a lot of change here.

And if we go to the next page, this page is uh accounts payable.

We can see that the main difference that you'd see before that I from prior reports, I want to draw your attention to on the AP aging in the bottom left-hand corner.

Um, for the current month, you can see there's um invoices that have been on hold or retainage.

I'm sorry, that haven't been paid for over 61 days.

And the reason for that is that we're using a new eschease module in Oracle, and so the the way that that works is um you have to void the checks, have them reissued, and then uh cancel the invoices, and so that that will go away next year.

Um for property tax collection rate analysis.

This is not very different from what you saw in the last quarterly report.

Um, that is because uh collections end after February 28th, and so for this quarter there were very little collections, those they would have just been corrections and adjustments that had to be made.

Um, the next page is our investment portfolio summary.

Um I'll draw your attention to the retiree protection trust fund, just to point out that at this point we're in harvesting mode.

Um our fundamental investment goal is to minimize the risk of loss, um, lock-in uh attractive short-term rates and ensure the necessary laddered liquidity.

Um, this is because we know what the payments to the retiree trust funds needs to be for the remainder of the time, and so we are just making sure that our investments match that and that we um minimize risk.

The pension payments report, um all the payments have been made as required, and there's really nothing else remarkable on this slide.

And finally, the debt service report.

Um I think the only thing new here was the issuance of an additional supplemental IPA.

Um, and then we can see that all of the HUD notes were repaid using um remaining CDBG funds.

So the HUD notes, uh, there are no longer HUD notes outstanding.

And that concludes my presentation.

Thank you.

So, Mr.

Chair, we'll turn it back to you and um answer any questions.

Thank you.

Uh any questions from members.

Pretty straightforward on that.

I know Mr.

Corley submitted uh at least six questions uh that he wanted to have answers, some doing with the uh municipal income tax uh as well as uh surpluses and things of that nature.

I'll let Mr.

Corley go directly into those because some of your questions correlate are or correlate with the or align with the questions that I have uh as well, but I will turn it over to you, Mr.

Corley.

Thank you, Mr.

Chair.

If we can go to page back to page one.

Uh just to remind the council and the public, the city of Detroit has experienced 11 consecutive budget surpluses.

And so if we end up with the surplus, which looks like we are as of June 30, 2025, that would be the 12th consecutive year of budget surplus.

That's remarkable.

That's remarkable.

Um traditionally, the OCFO is conservative in their projection of the surplus.

So they're looking at 60 million.

There's a good chance, although Mr.

Johnson is you know cautioning us that there are year-in um accruals and adjustments, but typically they are conservative in their projection, so it could be higher.

Um just want to, you know, remind you again that, and I know Miss Umgoli spoke to this on September Monday, September the 22nd, will be the September uh revenue estimating revenue conference.

That's gonna be an important one because you're not not only going to look at what's going on with um income tax and in particular corporate tax, you know, there would be a report on the overall economy.

And that's gonna be uh informative because they're gonna give an update on what's the impact of what's going on with the tariffs.

What's the impact of the um supply chain issues?

What's it was the impact you know of inflation and employment, unemployment.

And so that's gonna be a very important conference uh a couple of weeks from now on Monday.

Go to pace on five, please.

And so um I think some of my questions were answered.

You know, the first one is the question about municipal income tax, uh projected shortfall of 32 million dollars.

That's primarily because of the corporate income tax uh issue that Mr.

Ms.

Angoli spoke to.

Um, and also it looks like there could be some slight lower revenues on the individual taxes and the partnership taxes as well.

So again, that would be fleshed out much more on Monday, September the 22nd.

And then the waiver taxes, the 18 million projected surplus as primarily internet gaming, um, which we've you know have heard about that in the past.

But my main questions uh relate to the expenditure side.

And so they're projecting OCFO is projecting a $5.2 million surplus in professional contrastal services.

Um my main question is are there any major agency programs that may not be carried out because of this uh lower projected spending in professional contrastal services, and like to hear from Mr.

Johnson on that one.

Mr.

Johnson.

Uh yes, through the chair.

Um, so I don't think that we would see um I I don't think that's it's necessarily that certain programs aren't being done.

I think it's just the way that timing of certain programs and the timing of various services sometimes doesn't align with the fiscal year, and sometimes I think things just don't hit when we expect them to hit.

And sometimes I think things just don't hit when we expect them to hit.

And so, you know, the invoices for a particular service that we're doing year round, we may not ultimately get invoiced until after, or you know, the service may not ultimately get delivered until after the fiscal year ends, or um it's really a timing thing.

Um I don't, I'm not, I'm not aware of any program that is just simply in the general fund that is just simply not getting done as a result of of the contractual underspend.

I just think it's mostly a factor of timing and when certain things certain um certain city services are delivered or certain functions are undertaken.

Um and that's what's sort of resulting in this underspend.

Um it could be lower.

I mean, we we could ultimately be invoiced for a large number of services that we just weren't expecting that are still outstanding.

But based on what we know, part of what we do to determine kind of an estimate on contractual services and operating supplies and operating services.

We do work with the departments themselves and and the Office of Departmental Financial Services, our sister division, um, to the Office of Budget to find out from the departments.

You know, have you are you are you certain that you've gotten all the invoices from all of your vendors?

And departments generally, they're tracking that too, right?

They have work orders, they have you know, regular meetings with vendors, and so they're gonna say, you know, we haven't gotten an invoice from you know, Bob Smith Incorporated since March.

So I'm gonna circle back with them and find out why they haven't invoiced us because we've definitely been doing work.

And we go, okay, great.

Can you kind of give us a sense of how much you think that might have been?

So that's usually what happens during this period when we're estimating the 5.2 is what we like think is likely where we're just not gonna get invoiced timely for something, or we weren't able to get that started until later in the fiscal year.

And so it'll continue in the next fiscal year's budget, but we didn't end up ultimately spending the full annual budget in this fiscal year.

So I think it's generally a function of timing when things start and when things get billed that really drives that.

Um, but it's something that we keep an eye on a lot to get a sense of what's the life cycle of contracts and when do we in various service categories, commodity categories, when do we um normally experience expenses versus you know, feast versus famine.

Like what when are the times when we're really seeing lots of activity versus lower levels of activity, and then how can we better map our finances to that?

So, you know, we're just gathering this data as it goes, but this is what we think is a reasonable expectation based on timing of delivery.

I don't think I'm not aware of anything that's not being done at all as a root, you know, because of this.

Okay, okay.

That's good to hear.

So my next question is similar.

It's a projected $13.8 million surplus in operating supplies.

Again, any major programs that may be impacted by this.

And you know, it's it's kind of interesting that we're projecting a roughly $14 million surplus in supplies uh in light of the higher inflation that we know about, again, supply chain issues and potential negative impacts of uh other terrorists.

So appreciate your feedback on that one.

Yeah, uh through the chair, thank you for the question.

This is one I think I I may need to say that I'll need to follow up.

Um the operating supplies breakdown is one that I'm not as familiar with.

I spend a lot of my attention on the contracts themselves.

That doesn't, that's not to say there aren't contracts that actually are falling into um accounting accounts, uh roll-up accounts that are in the operating supplies category, but I would need to kind of dig into that one a little bit more to get a better sense of what's driving it.

The operating supplies category is a little more amorphous than and uh I think even I like.

Um it includes things like fuel for vehicles um and not just office supplies.

So when we say supplies, that's a pretty broad term.

Um it really, you know, it's it's goods and services um, you know, delivered.

And so this category is likely one where we are waiting for the invoices.

So I think we put a number on here that may in fact go.

This is one where I think this number could could go down from the 13.8, because for operating supplies, an important thing to note with with goods and services the city receives is we can receive the good and service, and that would have been in fiscal year 25, but maybe we haven't been invoiced for it yet.

And that's very common this time of year where big orders are made later in the fiscal year, the equipment, the the supplies, the consumables are delivered, and the company just hasn't yet invoiced us and and we haven't done the payment, and that would be accrued.

So I can dig into this a little bit further um with um the ODFS uh team and um uh our chief deputy CFO Regina Greer, who also oversees um ODFS, and we can kind of pull this one apart a little bit more and get a little bit more insight into it and follow up with you.

I would really appreciate uh the follow-up, and so if the if the members um agree, we can bring this back next week to get that uh explanation.

Um that would be wonderful.

Um, and then I you know, I mentioned my question that you know, of course, there's a lot of supplies and parts in um general services department, you know, with the equipment, uh the vehicles and so on and so forth.

So yeah, it would be good to um um get a greater explanation of that.

And then also on page five, there's a projected 38.1 million dollar surplus and other expenses.

Um, and again, you know, what are there are there any negative consequences um regarding that?

Um, you know, by this not maybe things not getting done.

Uh I know there's a lot of stuff and other expenses, but um if you could share any light on that as well, that would be great.

So a lot of um so there are a lot of things that fall in other expenses, and I think we all, you know, nobody likes the category other expenses um and and the way that some of these things are coded um in our in our system and how they roll up, but um this is one where you know, I think that what might be helpful for answering this question is Regina Greer is actually in the lobby because she's going to be doing the next agenda item for the large events report um uh in partnership with me.

I'm wondering if we could promote Ms.

Greer and she could join this conversation if if the chair is amenable.

Um she's very close to the actuals, um, you know, overseeing ODFS um and has a lot of interaction with controller as well.

So she's very close and familiar with some of these things.

I'm not making commitments on her behalf that she can answer everything in detail, but she she will likely have a better sense than I do at this time.

So if the chair is amenable, I would love to have Ms.

Greer join us for this conversation.

Mr.

Chair, Regina Greer has been promoted.

Thank you, Ms.

Greer.

Ms.

Greer, are you there?

Good afternoon.

Good afternoon.

If you can please state your name for the record.

Regina Greer, Chief Deputy CFO for office of the CFO.

So just to get Ms.

Greer up to speed, we are discussing the other expenses category in the financial report and the 38.1 million expected surplus there.

And I'm hoping that you might be able to give a little bit more color to sort of what are the kind of drivers in that category.

Um that to uh through the chair, um, the other expenses um would be um additional operating expenses that are not included in the operating supplies and the operating services.

So there's um some of the small capital items um that are not over the capitalized threshold would fit in the other expenses uh category.

There's uh interest expense would also be included in there.

So there's a myriad of um items.

If you want the full list, we can provide that for you.

Yeah, Mr.

Chair, that that again that would be wonderful.

Again, you know, it's there's a lot in this category, you know, interest and so on and so forth.

So you know through the chair, no, no problem.

And then also just to address the previous question regarding the operating supplies and the operating services.

Um, I believe as Donnie noted, um, that there is kind of a projection in here because for fiscal, because we're at the end of fiscal 25.

Um, any goods and services that were delivered through June 30th, they have to be um accrued if they're not already expended, if the vendor has not invoiced us, which is the majority of some of these items.

So as uh July and August have come through, vendors have now submitted their invoices, which is why Donnie had noted that some of the annual projections may very well change as um vendors have invoiced, and those invoices have to be accrued to fiscal 25 from an accounting perspective for the financial statements.

Okay, thank you.

And so my last question is on page six, and that's the chart at the bottom on continuing appropriations.

So my question is will most of this not be carried forward in fiscal 2026?

That's my general question.

Um through the chair.

A number of these items are carried forward.

So some of these are by law carried forward.

So things like the public health fund, which is established by ordinance, which specifically states that the fund these don't lapse, that these funds are set aside and that they do not lapse, that they must always be available for public health purposes.

Other items, they are carrying what we are going to do is we are going to be moving all of the items that do balance for that have been in fund 1000.

We are going to relocate them into more appropriate funds.

Um, as you know, this body knows and and as LPD is familiar, um really state law is not okay with balancing forward your general fund.

Your general fund really needs to lapse at the end of the year.

Now special funds, special revenue funds, special purpose things.

That's a different story, but fund 1000, our general fund, um, really does need to lapse.

And because we have balance forward continuing appropriation items in that fund, we are going to be finding them new homes, so to speak.

So we'll move them into special revenue fund as appropriate, fund 3921.

We'll move them into um a general fund series fund, but that's not fund 1000.

So it could be fund 1006, could become the you know, neighborhood improvement fund.

I'm throwing out an example.

So for the public's purposes, do not quote me on that.

It could be different.

Um, but something like that, where we're identifying new homes for these items, so we can take them out of fund 1000.

It doesn't change the the spend experience or the use of these funds, the way that they're handled by the department that facilitates their use.

It's simply from a um PA2 compliance and uh a better accounting practice um and accounting compliance, we're gonna find them new homes.

So, but some of these aren't going to balance forward because they were spent.

That um at the end of the year when we went to close these out, um, they had been spent down.

So, as you can see on this report, we were showing a remaining balance of $391 in the Wayne County Park Millage.

That is going to that will have been closed out.

So it won't come forward into 26.

Um now we will receive more park millage money that will still come through from the county, um, but the way that we recognize it will not be the same as we had been doing it, putting into the general fund.

We will be treating it differently and putting it somewhere that's more appropriate for it being a carry forward, a no year item.

Um, but you know, again, some of these items they won't balance forward because they were ultimately spent down by the time we close the books on 25.

And the ones that have, um, they'll have new homes.

And um, you know, the way that this slide works will look it will look different um moving forward.

We'll still show them because we do need to account for the continuing appropriations.

It just won't all be under the umbrella of fund 1000 moving forward.

Thank you.

Thank you for that, um, Mr.

Johnson.

Yeah, I appreciate that.

I know this page might be kind of a little bit more busy when you're including the other funds that you know you're gonna be shipping the money to, but it's still very important for the reader to understand.

So thank you, um, Mr.

Chair.

That's my questions.

Appreciate it.

And June, if again, if the committee agrees, if you can bring this back this week to get a greater understanding on some of the questions, that'd be great.

Yeah, sure.

I mean uh to you, Mr.

Crowley, I don't see a problem with that.

It is a report.

Uh, but in order for us to be able to discuss it in the proper venue, uh, we can bring it back in a week.

Uh is there a motion to bring back uh this line item in one week?

Motion here, no objections.

That action shall be taken.

Uh Mr.

Johnson, or thank you very much, Ms.

Greer, uh, as well as our deputy treasurer.

Uh and Mr.

Johnson, if you'd like to go directly into the next line item.

Yes, Mr.

Chair.

I'm actually going to um have Ms.

Greer um with me on this one as well.

Um I'm going to actually pass it over to her.

Um it is actually her team that puts this report together.

So she is gonna be a lot more knowledgeable than I am, I think.

Thank you, Donnie.

Through the chair, um, please to present the uh special events revenue uh report for uh Q4 of fiscal 25.

So the report that you have um is the detailed um revenue for both uh DPD and DFD, police and fire.

So the police revenue for Q4 fiscal 25 was 564,044, 43 cents.

Uh the fire department special event revenue was 171,869.20 cents for a total combined uh Q4 uh 25 uh revenue of 735,913.

The total fiscal year to date for combined police and fire for fiscal year 2025 was 2,663,067.

Um and that includes both uh police and fire.

And I believe um we've had previous discussions regarding the fire department revenue.

Um, and there was a um, or there is, excuse me, a uh bill that's with the law department now that the fire department has presented with the right of first refusal, which will require uh outside um events to use utilize the emergency services for the city instead of going to outside contractors that would also kind of require and allow for additional revenue uh for the fire department.

And I can answer any other questions that you may have.

Thank you.

Uh and do you happen to have the slide for this?

I know normally we have a slide on there just for transparency for the public.

Yeah, my apologies.

Um I can pull it up, Regina.

Thank you.

No problem.

Sorry, it's it's sort of odd layout for a presentation, but this is for the public's benefit.

This is the report that is submitted to the to the committee.

Correct.

And through the chair, just to repeat again the grand total for fiscal uh 25 um uh special events revenue is $2,663, excuse me.

Okay.

Members, and are there any questions?

Any questions for line item 6.4.

Okay, seeing none, uh is there a motion to receive and file line item 6.4.

Hearing no objections, that action shall be taken.

All right, thank you very much, Ms.

Greer.

Uh Ms.

Greer, very quickly, can you tell the public where they can find this report?

Actually, um, Donnie, if you can um note that it's on the city of Detroit website, the under the office of the CFO, if I'm saying it correctly.

Yes, I believe I believe if you go to Detroit in my dot in my dot slash OCFO, I believe, should should direct you to the OCFO's webpage, and then from there you can see the various reports that OCFO um produces.

Thank you.

Uh and uh just to note, I will want to have some offline discussions just relative to some ideas for DFD and EMS that are attached.

Uh, I think we had a little bit of this conversation prior to uh recess about you know the opportunity uh to utilize our own EMS to be able to generate revenue as opposed to uh the third parties that are contracted to by the venues uh and or those who put the events on.

Uh there are opportunities to do that as well, but I'd love to have some conversations offline about uh that uh but also again just wanted that transparency for the public so members can see which specific events yield uh what uh regarding revenue.

So thank you very much, Ms.

Greer, appreciate that uh as well.

Uh thank you.

Thank you.

Next under the office of the chief financial officerslash office of budget line item 6.5, submitting a resolution of authorization for the fiscal year 2025-2026 allocation of elected officials budget.

Motion to discuss line item 6.5.

Motion.

Hearing no objections, that action shall be taken.

Uh Mr.

Johnson, give us a brief overview of this.

Uh pretty much speaks for itself in the description, but uh give us a give give us a brief overview of this line item.

Yeah, um, thank you, Mr.

Chair.

Um so uh after um the last time we had council, the last time we had elections um and there was turnover on the council.

Um there a few council members experienced um their budgets, they didn't have as much in their budget for the remaining half of the fiscal year after they took office as you know, should have been there at 50% of the fiscal year.

And so um, you know, over the last few years, a number of um council members and then you know the mayor brought it up as well with us recently that we need to ensure that newly elected officials are coming in with the full amount of money they need for that, you know, since terms begin in the middle of a fiscal year, and we need to ensure that folks don't start with less than half of fiscal year's worth of budget so they can get up and running and set up their offices.

So we discussed this with um LPD and we had a few different conversations about how to kind of do this.

And what we ultimately concluded is for now we're going to do this through a resolution.

I believe LPD is working for a uh on a more um uh ordinance-based um solution.

Um, but this will resolve the issue for us now.

So, what this resolution does is it simply states that um 50% of the budget for each of the offices of each of the elected officials for the city of Detroit, which is going to be the um nine council members, the mayor, and the city clerk.

So what this resolution does is it simply states that um 50% of the budget for each of the offices of each of the elected officials for the city of Detroit, which is going to be the um nine council members, the mayor, and the city clerk, um 50% of their budgets will be um transferred out of their current general fund appropriation into what you could consider a lockbox appropriation.

These appropriations will hold 50% of the budget.

They will be in fact disabled so that they can't be transacted against.

Um, and then on or about December 31st, right before the turn of the year, or you know, possibly January 2nd, um, we will transfer those funds back into the normal appropriations so that the new council members taking office are assured of having at least that 50% left in their budget.

So it's a way of controlling expenses since the fiscal year, the end of a fiscal year is not coincidental with the ends of terms of office and the beginning of terms of office.

And so we have to kind of come up with a solution that lets us bifurcate budgets in a way that we wouldn't normally do.

So this is the sort of um easiest way for us to accomplish that and ensure that these funds stay secure.

Okay, thank you, Mr.

Johnson.

Before I turn it over to members, uh, let me uh just state uh I support this uh resolution uh in a way uh when I came into office, I came in prior to uh myself, myself and member Johnson came in prior to the other council members that came in.

Uh and we walked into a situation uh where I had a surplus per uh per se uh in December uh and it was difficult for her coming in and she was actually operating in a deficit.

Uh so I understand the importance uh of ensuring uh again that the next council member has something to work with to be able to build their staff, build their office.

The concern that I have is the number.

Uh we are talking 50%.

So I want to give you a hypothetical.

If your staffing level and your budget and what your budgeted in your office is above that 50%, uh what happens then you would need to reduce expenditures in some way to ensure that you don't spend more than 50% of your budget.

So this would essentially have the budget, and then you would work to that new number to you know get to the end of the fiscal end of the fiscal year and or end of the term, sorry, the end of the year.

Um so you know, you we would work with you if we need to to come up with solutions for reducing expenditures, but offices would be required to reduce expenditures.

Um that goes again for the mayor's office as well and and the city clerk.

So um, you know, you would have to work to the budget that you have left um to you for the remainder of the term.

And so I I guess what my question is, and and this is us thinking forward.

Uh I know you mentioned an ordinance, we're talking about a resolution.

Uh it is good to have this information or have this type of legislation or this I or even just the idea for that matter, uh, prior to the fiscal year in which you're making the decision.

Uh, because if you have your staff and you know you're coming to the end of a term, your staff would assume that they are going to you know be there with you uh to the end of that term because the council members' term and or elected officials' term does not expire until January 1.

Uh and so that could create uh a situation where through those offices, you don't want to have to lay someone off.

Uh you don't want to have to, particularly as we're talking about, and I'm very sensitive to this, that's going into the holiday season.

Uh there's nothing worse than finding out you're not going to have a job before Christmas.

So, you know, I I would just, you know, moving forward, I would suggest again having those conversations with council members prior to that fiscal year, uh, you know, prior to that last June that you go into, or new, um excuse me, last July that you go into, um, you know, letting them know where they're going to be, and you know, so they can prepare uh for that.

That would be the only term.

But but through in that same vein to to your question, uh, do we anticipate that any of those members' salaries or elected officials' salaries will supersede 50% of their budget?

Have we seen that?

But so uh, Mr.

Chair, the elected officials' salaries themselves are not budgeted in your respective office budgets.

No, no, I I'm I'm I am I am well aware of that.

I'm I'm totally no, no, no, I am well aware of that.

I'm saying for staff, do we anticipate that those salaries will supersede 50% of what the office allotments are.

Um at this time, because we're you know, we're only a couple months into the new fiscal year.

Um, we we are not seeing that there would be an issue in that regard.

Um, you know, we assume based on the head count of each office that we you know, we budget when you prorate people's salary by month, essentially, thinking of the the the fiscal year as 12 periods, um, everyone's budgeted accordingly.

So, in theory, everyone's salaries are are budgeted through December 31st.

You know, for each month, you know, for each, you know, uh approximately two payrolls a month, one there's one month with a third, a three a three-pay month uh in this time window.

But generally speaking, we're budgeted for all of the pay periods that occur between July 1st and December 31st, as well as January 1st through June 30th.

Um, and so in theory, everybody is budgeted fully to work through December 31st.

Um, because that's how we that's how we budget.

We don't assume turnover anything for council offices.

So you're fully budgeted, assuming all positions in your budget are staffed at all times.

Um, you know, uh so I I don't foresee any issues like that unless there are major pay changes or you know, things like that.

Um salaries are budgeted for the six-month period.

Oh, so and so um what what would be helpful though prior to passing this resolution, because I'm gonna ask that we bring this back for a week.

Uh, is that if you get a list to each council member of their office and what their anticipation will be of what that 50% looks like in their numbers uh from Ms.

Williams from Eunice and a couple other folks, that would be extremely helpful because that'll give before members vote on this actual resolution and they'll have the ability to have an idea of what they can be able to do uh until January.

Uh there may be conferences that are coming up that members may want to attend.

Um and uh a few other events where they want to do events in their district.

Uh uh that would be helpful though, having that that information solidified before we vote on that for each elected official uh in their office so they can understand the decisions that they have to make before we vote on you know, putting this this 50%.

But I but I will say again, I I agree with you.

Uh you do not want the next member of that office to walk in with nothing.

Uh that is not only unfair to that member, but unfair to the residents uh when we talk about service.

Um, but but it's helpful to know what that number looks like because many members may have different formulas.

Uh, you know, I tend to put my money into my people uh and because I know we work them very hard.

Uh and there are a couple members that do that.

Uh so we wanna, you know, we want I want to make sure that uh everyone is straight uh before we do that.

So uh with that, member Santiago Mero uh Chair recognizes you.

Thank you.

I do have one brief question.

Um District Five, because it is the president's office has more money than any of the other district offices.

What are we gonna do with their surplus essentially?

Um can that be moved to whoever else is the president's office if it's another district person.

I'm just wondering, excuse me, how we're going to um move those funds around.

That's true, the chair.

Thank you for the question.

It's a very, very good one.

Um, so um, yes, obviously there will be a new council president um uh in um January.

And so um right now what we've done is we've we've bifurcated the budget and we've put it aside.

My intention would be to um have the council adopt a resolution in the new year after the new president is elected when you've had your organizing meeting and all of that's done, and then the first full business session, I would probably have presented a resolution that will say the the funds that currently exist in district five, you know, the council president support funds, those travel with the office, right?

And so uh there will be a resolution memorializing that and it would just say these funds now need to be transferred or um you know allocated to associated with the new council president's office, whether it's a district member and at-large member, however, it's however it's done.

So that will come because we would need to cross appropriations to do that.

Um each council office has its own appropriation, it lives in its own little you know, universe, and so I would need council authority um to do that.

Um and so that would be after the turn of the year, once once the council has done its organizing and um we know what that is, I would bring a resolution and we would transfer it.

Okay, thank you.

Um that's my only question.

Thank you, Mr.

Chair.

Thank you, Member Santiago Romero.

And Mr.

Johnson, do you think we can have that?

I don't want to put something on uh the team and it's a last minute thing.

Do you think one week is sufficient or we need to do two weeks?

We could do it in one week.

I mean, one week should be fine.

Um and that'll be enough time to correspond with the individual council offices, give them updates on their budget where they stand, what that 50% looks like from the cutoff period, and what they what the number that they have to work with.

I mean, honestly, we know that the council office allotment is uh technically a little bit over a million dollars.

Uh so you and you're gonna be anticipating for close to 600 grand, but uh which is 50 percent.

Uh, but it'd be great to just see that number.

Some folks spend earlier than others, uh, and and and again, I just want to have that security for members as well.

Yeah, yeah.

Uh let's do two weeks.

Let's just to be safe.

Let's just do two weeks to be safe.

Okay, thank you, Mr.

Johnson.

Is there a motion to bring back lineup?

Sorry, Mr.

Corley, go ahead.

Thank you so much, sir.

Um so actually, back in June, Councilmember Johnson requested LPD to provide a policy or create a policy preserving 50% of the office budgets for the elected officials.

Um it started out with just city council members.

Um actually, no, I'm sorry.

She she does include um the administration as well.

So um, so I just want to you know mention that that we we did get this um request from council member Johnson back in June, and she asked us LPD to provide an ordinance that would you know outline this policy, and so what what we would like to do is after council approves whatever resolution um that's before you right now, then we would mirror for the most part the the the ordinance draft to the resolution that you pass um in a couple weeks or so.

Um but in our I just want to mention to your point, Mr.

Chair, about you know, looking at the level of expenditures and you know and all of that.

We do suggest in our at least our draft of our ordinance is that the OCFO provides the offices monthly a report, you know, um on the expenditures, on the level of expenditures at that point in time, so that you can better plan for whatever changes you need to make or adjustments you need to make um before that person will leave office.

So just let you know about that.

Thank you, Ms.

Corps.

I think that that is helpful as well.

Uh uh, and so seeing no other questions.

Uh there's a motion to bring back line item 6.5 in two weeks.

Motion.

No objections, that action shall be taken.

Thank you very much.

Member Santiago Romero, uh, Mr.

Corley.

Mr.

Johnson will go directly into line item 6.6.

Um submitting a report related to fiscal impact of amendment to chapter 29 of the 2019 Detroit City Code Miners Article 3 by amending section 29 29-3-7 for Article 7 and section 29-7-2 responsibility ordinance.

This is already an item that we took uh before recess.

Uh I have no questions, and the report was sent out on the 25th of July.

No further questions, none from members.

Motion to receive and file line item 6.6.

So moved.

Hearing no objections, that action shall be taken.

Uh Mr.

Johnson, I think that is it for you, unless you want to hang around for the ARPA discussions or ARPA fund statuses.

Oh gosh.

Um, you know, fun as that sounds, Mr.

Chair.

I believe there are greater experts than me in ARPA.

So I uh I will I'll be I'll be on the call.

So if if anyone needs me, holler.

I'm just gonna I'll go off camera.

That was a very political answer, Mr.

Johnson.

Mr.

Corley's feelings are hurt.

Uh he has to go over to ARPA, and you won't be there to hear them.

So, but no, thank you so much, Mr.

Johnson.

We appreciate you, sir.

Thank you, sir.

Next under legislative policy division line item 6.7, submitting a report relative to legislative policy division report on the status of the 2024 through 2026, financial and budgetary priorities, public policy planning and action resolutions.

Uh Mr.

Corley, motion to discuss line item 6.7.

Motion.

Hearing no objections, that action shall be taken to you, Mr.

Corley.

I know you, Miss Short.

We're working on this.

Do we still need more time on this?

Uh so Mr.

Chair, we would like to um bring this back, please in a week so that Ms.

Shore can prepare a PowerPoint presentation.

So okay, great.

Yeah, it'll it'll be great to see uh where we are on this.

I know we are ending the end of this legislative term.

Be great to see where our closing resolutions are for this term.

So uh is there a motion to bring let's give her a couple weeks because I I cannot we'll just get back into swing of things.

There are motion to bring back line item 6.7 in two weeks.

Motion hearing no objections, that action shall be taken.

Uh member Santiago Romero, we can take up line items 6.8 through 6.13.

Uh, all of these are various ARPA fund statuses reports from LPD.

They range from January 31st, February 28th, March 31st, April 30th, May 31st, and June 30th.

There's our motion to discuss line items 6.8 through 6.13.

Motion.

There are no objections.

That action shall be taken.

Mr.

Corley to you.

Although I would probably not suggest Mr.

Corley, I would probably figure that you are going to go to the latest ARPA one and see how that is changed.

But the floor is yours, sir.

Thank you, Mr.

Chair.

So uh not to disappoint you.

But um the January 2024 opera report should have been included on this um calendar on this agenda.

And uh it's gonna go through East Grind.

Uh probably has gone through already, I'm sorry, today.

And so if you can please bring these back next week, that way we can include December 2024 through June uh 2025.

I greatly appreciate it.

Okay.

Uh and we can bring this back on one week.

Uh I am letting you know in advance, uh, depending on how you're gonna go over the report, Mr.

Corley.

We may have to split these up if you're gonna go through individual and walk us through uh because we are looking at about six reports and getting back in the crux of things and the referrals that we just got, uh, and those that are coming in the pipeline.

Uh we're gonna have a busy next couple weeks.

Uh so uh, but there's a motion.

Is there a motion to bring back oh chair recognizes you, member vice chair?

Oh, we're gonna bring back one report or we're gonna bring them all back.

Oh man.

We'll bring them all back.

Oh okay, and we're gonna all take them back up at the same date, right?

Okay, it's not gonna be like one today and then three weeks later we're gonna take up the other one.

All right, let's make sure.

All right.

Is there a motion to bring back line items 6.8 through 6.13?

Motion.

Hearing no uh pardon me in one week.

Uh in one week.

Motion.

Hearing no objections, that action shall be taken.

And that brings us to the end of our agenda.

Member reports.

Chair recognizes member Santiago Romero.

Thank you, Mr.

Chair.

Just want to invite District 6 residents to join us today for our D6 monthly meeting.

We are going to be at location um 4981 Cabots.

Um in 4210.

Hope to see you guys there.

We'll be there at 6 o'clock.

Thank you, Member Santiago Romero.

Chair recognizes member vice chair young.

Negative.

Thank you, Member Vice Chair.

Uh, for my member report, uh, please note that our next retiree task force hybrid meeting will be taking place this Friday, September the 5th, 2025, from 11 a.m.

to 1230 p.m.

in the Arma Henderson Auditorium, but it'll also be virtual and we will send the link out to you via delivery again.

That is this Friday, September 5th, 2025, from 11 a.m.

to 1230 p.m.

our retiree task force hybrid meeting in which I co-chair that with member uh waters.

Uh we invite you to attend if you're a retiree to receive some important updates, voice your concerns, and connect with other fellow retirees.

Uh our 28th policy session is taking place on Monday, September the 22nd from 6 p.m.

to 7 30 p.m.

at the Edison Library, located at 1840 Joy Road.

Again, uh this is Monday, September 22nd, 6 p.m.

to 7 30 p.m.

at the Edison Library, and we will be discussing the importance of voting and why voting is important.

If you haven't attended our annual policy or our policy session, should I say, uh, in the past, we encourage you to attend great time to learn along fellow uh residents and get some great information.

So that's taking place Monday, September the 22nd, 6 p.m.

to 7 30 p.m.

And finally, our district seven community engagement meeting is taking place Tuesday, September the 30th from 6 p.m.

to 7 30 p.m.

at the St.

Suzanne Cody Rouge Community Resource Center, located at 1932 1 West Chicago.

Uh and that is September the 30th, 6 p.m.

to 7 30 p.m.

our district seven community engagement meeting.

Other than that, that concludes my member report and seeing no other business to come before this committee.

The budget finance and audit standing committee will stand adjourned at the call of the chair without objection.