Detroit City Council Budget, Finance and Audit Committee Meeting - September 3, 2025

The Budget, Finance and Audit Standing Committee of the Detroit City Council convened on September 3, 2025, to address a lengthy agenda encompassing the city's fiscal status, contract approvals, transition protocols for elected officials, and updates on ARPA funding. The meeting included significant public testimony advocating for shifts in spending priorities towards prevention and retiree relief.

Consent Calendar

• Approval of minutes from the prior meeting.
• Received and filed a report on the fiscal impact of amendments to Chapter 31 of the City Code (Item 5.3).
• Received and filed a report on the fiscal impact of amendments to Chapter 29 of the City Code (Item 6.6).

Public Comments & Testimony

• Ronald Foster (In-Person): Argued the city should reallocate funds from law enforcement and corporate counsel to preventive community measures. He stated that 20 to 40 children were shot and killed in the city over the summer, primarily in parks, and criticized city leadership for dismissing community advocacy.
• William M. Davis (Virtual): Invited the public to the City Retiree Task Force meeting and his Detroit Active Retired Employee Association meeting. He argued that retirees bore the brunt of the city's financial recovery, citing a combined 23% reduction in pension and annuity clawbacks, and called on the city to retroactively eliminate clawback interest.
• Betty A. Varner (Virtual): President of the Soda Ellsworth Block Association, reported the purchase of lots to expand the neighborhood park and requested donations for landscaping boulders.
• Cunningham (Virtual): Thanked donors for supporting his community efforts with bus tickets and ice water. He requested the Mayor provide longer notice for meetings and acknowledged the addition of a voicemail to the Mayor's office phone line.
• Not That Karen (Virtual): Expressed support for Mr. Davis's statements on retiree struggles and raised concerns about the lack of documentation proving her property lies in an enterprise zone, which she believes should reduce her taxes.
• Carolyn Hughes (Virtual): Echoed prior commenters on retiree issues and police spending. She criticized the approval of items with negative fiscal impacts, warning such actions could lead the city back toward bankruptcy.

Discussion Items

• 5.1 ARPA Compliance Contract (AECOM): The committee reviewed a $3.8 million amendment to a $21.8 million contract to ensure compliance and audit readiness for ARPA funds. Deputy CFO Terry Daniels stated the cost is under 3% of total ARPA funds and is crucial to avoid repaying funds. The item was sent to formal session for approval.
• 5.2 Fiscal Impact of the 'Big Beautiful Bill': Introduced by Council Member Mary Waters, LPD requested an additional month to analyze the fiscal impact and coordinate with the OCFO.
• 5.4 Detroit Public Library Foundation Information: LPD reported the foundation is involved in a legal matter and requested two weeks to obtain more information from the library's CFO.
• 6.1 & 6.2 Auditing Services Contracts (Plante Moran): Two contracts were approved for the Auditor General ($9.2 million) and the OCFO ($370,000) to provide auditing services and prepare the Comprehensive Annual Financial Report (CAFR) over five years. Deputy Auditor General Mark Lockridge noted the contracts were put out for bid for the first time in 10 years.
• 6.3 Financial Report for Fiscal Year 2025 (June YTD): Acting Budget Director Donnie Johnson presented a preliminary unaudited report showing an estimated $60.2 million surplus in the unassigned fund balance, driven by $69.1 million in underexpenditures against a $7 million revenue shortfall. Council Member Corley questioned surpluses in specific expense categories (professional services, operating supplies, and other expenses). Johnson and Deputy CFO Regina Greer explained that the underspends are largely due to the timing of invoices and year-end accruals. The item was brought back for one week.
• 6.4 Large Events Report (Q4 FY25): Deputy CFO Regina Greer reported combined special events revenue of $735,913 for Q4 and $2.66 million for the fiscal year. Chair Payne expressed interest in exploring revenue generation for the Fire Department and EMS through a right of first refusal on event services.
• 6.5 Elected Officials Office Budget Resolution: A resolution to place 50% of elected official office budgets into a lockbox to preserve funds for incoming officials was discussed. Chair Payne voiced support but requested detailed expenditure projections for each office before voting, citing concerns about staffing reductions during the transition. Council Member Santiago Romero raised the question of how the Council President's larger budget would be handled. The item was brought back in two weeks.
• 6.7 Status of Legislative Policy Resolutions: LPD requested time to prepare a PowerPoint on the status of financial and budgetary priority resolutions (2024–2026). The item was brought back in two weeks.
• 6.8 – 6.13 ARPA Fund Status Reports: A series of monthly ARPA reports were discussed. Council Member Corley requested the addition of the January 2024 report and asked for the entire package to be brought back in one week.

Key Outcomes

• Item 5.1: Sent to formal session with a recommendation to approve.
• Item 5.2: Referred to LPD and OCFO; due back in one month.
• Item 5.4: Brought back in two weeks.
• Items 6.1 & 6.2: Sent to formal session with a recommendation to approve.
• Item 6.3: Brought back in one week for further analysis on expenditure surpluses.
• Item 6.4: Received and filed.
• Item 6.5: Brought back in two weeks with a request for individual office budget breakdowns.
• Item 6.7: Brought back in two weeks.
• Items 6.8 – 6.13: Brought back in one week.