Budget, Finance and Audit Standing Committee Meeting - October 15, 2025
Budget, Finance and Audit Standing Committee Meeting - October 15, 2025
The Budget, Finance and Audit (BFA) Standing Committee met on Wednesday, October 15, 2025, at 1:00 PM. The meeting was chaired by Gary Decorn and attended by Councilmembers Fred Johall III, Coleman Young II (Vice Chair), and Gabriel Santiago Romero. Items discussed included the annual external audit plan, a contract amendment for payroll fraud investigation, a Neighborhood Enterprise Zone (NEZ) certificate request for 96 condominiums in the Hudson's Tower, a report on BZA appeal fees, and a walk-on payment in lieu of taxes (PILOT) application for workforce housing in Corktown.
Public Comments & Testimony
- Karen Winston (Detroit retiree) called for restoration of pensions and cost-of-living adjustments (COLAs), stating retirees have not seen increases since 2013. She also advocated for more rehabilitation of housing for homeless individuals and families, and addressed the city's over-taxation issues.
- Tyson Gersh (via Zoom) commented on the Board of Zoning Appeals (BZA) fee schedule, arguing that the current transcript cost per page was changed without City Council authorization in 2019, contradicting a 2013 resolution.
- William M. Davis expressed support for retirees, noting his pension is $1,500 less per month than at retirement in 2012. He criticized the mayor's performance on retiree and poverty issues, and claimed the city's population ranking has dropped from 16th to 26th.
- Anonymous caller (number ending in 124) commended Councilmember Santiago Romero for paying attention to speakers, complained about difficulty accessing board packets, and raised concerns about corruption in the law department regarding BZA matters.
- Brother Cunningham shared a story of helping a homeless mother with seven children, urged attendance at a DDOT meeting, and requested support for those in need.
Discussion Items
- Audit Plan Presentation (Plante Moran & Auditor General Laura Goodspeed): The external auditor presented the audit plan for the fiscal year ending June 30, 2025. Key focus areas included management override of controls, revenue (income taxes and grants), significant estimates (claims, allowances, pension liability, compensated absences with new GASB 101 standard), and payroll authorization. The auditors noted the 2025 OMB compliance supplement has not been released, which may delay the single audit report. Councilmembers asked about internal control opinions and the impact of late supplement issuance. The report was received and filed.
- Line Item 7.1 – Contract Amendment for Payroll Audit (Stout Ries & Ross): Auditor General Laura Goodspeed requested a $75,000 increase (total $750,000) to investigate payroll fraud allegations in the Detroit Fire Department, as reported in July 2025. The amendment also allows completion of public safety payroll reports delayed by requests for additional detail. Councilmembers asked about the investigation process and coordination with the Office of Inspector General. The item was approved and sent to formal session.
- Line Item 7.2 – NEZ Certificates for Hudson's Tower Condominiums (Roscoe Development Company/Bedrock): CPC staff and Brian Watkins (Bedrock) presented a request for 96 NEZ certificates for new condominiums on floors 26-45 of the Hudson's Tower. Units average 1,667 sq ft, priced at approximately $1,000/sq ft. Bedrock highlighted its affordable housing commitment: 42% of its 1,600-unit portfolio is at or below 60% AMI, with rents ranging from $1,060 (1-person) to $1,300 (3-person). Councilmembers discussed affordability metrics and density bonuses. The item was approved and sent to formal session.
- Line Item 7.3 – Report on BZA Fee Schedule Questions: LPD attorney Phil Keller provided a report requested by Council President Sheffield regarding BZA appeal fees. He noted the transcript fee changed from a set per-page price to the court reporter's cost per page in 2013, and the most recent fee schedule change was in February 2024. Due to active litigation, discussion was limited. The report was received and filed.
- Line Item 7.4 (Walk-on) – PILOT for 3416-3422 Cochrane (CNS Townhomes): The Housing and Revitalization Department (HRD) presented a PILOT request for four new townhome condominiums in the Sycamore development (North Corktown). All units are restricted to 81-120% AMI (workforce housing), with a proposed PILOT rate of 7%. The project is completed and pre-leasing, seeking PILOT for the 2026 tax year. Councilmember Santiago Romero raised concerns about gentrification and lack of deeply affordable units (30-60% AMI) in the area, while Councilmembers Young and Decorn emphasized the need for workforce housing for the
Meeting Transcript
Standing committee for Wednesday, October the 15th, 2025. Will the clerk please call roll? Councilmember Fred Johall the third. Present. Councilmember Coleman Young, the second. Councilmember Gabriel Santiago Romero. Present. Mr. Chair, Gary Decorn. Thank you, Mr. Clerk. Next we'll move to approval of 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. We have a pretty short agenda today. We have an audit discussion that will be coming up. Our auditor general is joining us and just a couple other items on the agenda today. That being said, we'll go directly into public comment. Each member of the public will have two minutes for public comment. We ask that you state your name for the record and then proceed speaking. Seeing that there are no members of uh or residents in the committee of the whole, we'll move directly to uh virtual public comment. If you wish to participate in virtual public comment, please indicate so now by raising your hand via the zoom feature. Again, you will have two minutes for public comment. Uh we are getting ready to close public comment. Public comment going once. Public comment going twice. Public comment going three times. Public comment is now closed. Good afternoon, Mr. Payne. How many callers do we have today? Good afternoon, Mr. Chair, honorable committee members. We have six raised hands. Six callers calling in for public comment. Who is our first caller? Our first caller is not that can. Not that Karen, you have two minutes for public comment. Please state your name for the record and proceed. Hello. Yes, ma'am. Yes, Karen Winston here. Um yeah, thank you for the the two minutes. Um comment, public comment uh time. Uh, we don't get two minutes too often. We usually get 90 seconds, sometimes 60 seconds. But thank you anyway. And thank you for your punctuality, sir, because you were actually on time.
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