Budget, Finance and Audit Standing Committee Meeting - October 8, 2025

On October 8, 2025, the Detroit City Council's Budget, Finance and Audit Standing Committee met, chaired by Councilmember Gabriel Santiago Romero. The meeting began with no quorum, so public comment was taken. After public comment, members joined and the committee proceeded to new business, including contract amendments, revenue forecast updates, a neighborhood enterprise zone application, and quarterly reports on bond-funded demolition and stabilization programs.

Public Comments & Testimony

• Rick (caller ending in 169) expressed thanks for prayers for Brother Cunningham.
• Betty A. Barner, president of the DeSoda Elsworth Block Association, advocated for seniors and disabled individuals, highlighting the My MI Choice Waiver Program which allows income up to $2,900 per month for those normally ineligible for Medicaid.
• Tyson Gersh criticized the city's practice of using third-party court reporters for Board of Zoning Appeals (BZA) transcripts, calling it an expensive paywall. He stated that no other municipality in Michigan requires certified transcripts from a court reporter and urged the city to transcribe them in-house using tools like Otter AI.
• Carolyn Hughes (Owner Papa) challenged the city's economic outlook report, alleging it was inaccurate. She referenced Detroit dropping in national rankings and accused the administration of gentrification. She also criticized the water department's lack of transparency and called Proposal 16.2 illegal and immoral for using surplus funds to cover budget holes.

Discussion Items

Line Item 6.1 – Contract Amendment for Public Safety Headquarters Facility Management

• Presenter: Roger Short, Detroit Building Authority. The amendment extends the contract with Jones Lang LaSalle for three months (through December) to allow time to prepare a new contract. Discrepancy noted: The agenda reading stated a $240,000 increase, but Mr. Short explicitly stated there was no dollar amount change, only a time extension. No questions from members. Motion to approve sent to formal session; passed without objection.

Line Item 6.2 – Revenue Estimating Conference Report (September 25, 2025)

• Presenters: Valeria Gali (acting Deputy CFO), Sean Tobin, and Erica Mooney of the Michigan Department of Treasury. They presented economic and revenue forecasts for fiscal years 2026–2030. Key points include:
  • Overall revenue forecast for FY2027: $2.66 billion, with $1.4 billion from the general fund.
  • Revisions down from February due to the One Big Beautiful Bill Act (affecting corporate income tax) and tariffs (especially on steel/aluminum).
  • Corporate income tax expected to decline by about $16 million in FY2026-27 due to federal tax changes, tapering to $8 million by FY2030.
  • Wagering tax (casino) projected at 1% annual growth after a surge in internet gaming.
  • Property tax collections are strong, with higher taxable values and consistent collections.
  • Budget reserve (rainy day fund) at ~$150 million; a separate corporate income tax reserve of $42 million was approved the previous day to buffer against revenue drops.
  • Councilmember Santiago Romero inquired about population trends, noting high child poverty and the need for transportation and childcare investments. Councilmember Young asked about remote work refunds (stable at ~$60 million/year) and wage growth. Mr. Corley noted a $31–48 million shortfall in total net general fund revenue over the forecast period, the lowest since the pandemic.
• Outcome: Motion to receive and file passed.

Line Item 6.3 – Neighborhood Enterprise Zone Certificate for 264 Watson Street

• Presenters: Chris Gulak (CPC staff) and petitioner Stephen Peter Basile. The house, built in 1883 and vacant for ~20 years, will be fully renovated for Mr. Basile's family. Total restoration cost estimated at $1.4 million. The property is in the Crosswinds Woodward Place NEZ area, approved by city council in 1996. Parking concerns were discussed; petitioner plans a future carriage house. No questions beyond parking. Motion to approve sent to formal session; passed without objection.

Line Items 6.4, 6.5, 6.6 – Neighborhood Improvement Plan Bonds Quarterly Reports

• Presenter: Mr. Corley (Council member). Summary of Proposal N bonds ($250 million authorization, two sales totaling $283.7 million):
  • As of June 30, 2025, $246 million spent (86.7% of total).
  • Demolitions: ~8,200 residential homes demolished (exceeding goal of 8,000).
  • Stabilizations: ~2,700 homes stabilized (goal was 6,000); of those, ~2,400 have been sold. Mr. Corley noted he will follow up with the Detroit Land Bank Authority and Construction & Demolition Department on the stabilization gap.
  • Funds are used only for residential demolitions; ARPA dollars cover commercial/industrial.
• Outcome: Motion to receive and file all three reports passed.

Key Outcomes

• Line Item 6.1 approved and sent to formal session (extension of time for Jones Lang LaSalle contract; discrepancy on $240,000 increase noted).
• Line Item 6.2 received and filed (Revenue Estimating Conference report).
• Line Item 6.3 approved and sent to formal session (NEZ certificate for 264 Watson).
• Line Items 6.4, 6.5, 6.6 received and filed (quarterly bond status reports).
• The committee observed a moment of silence for former Congresswoman Carolyn Cheeks Kilpatrick, who passed away.
• Councilmember Young announced a Hope Program virtual meeting on October 22, 2025, for property tax relief, and a community event at Butzel Family Center on October 9, 2025.
• Councilmember Santiago Romero announced a policy session on October 27, 2025, at Edison Library discussing the importance of voting.