City Council Budget Finance & Audit Committee Meeting Summary

The Budget Finance and Audit Standing Committee convened on October 22, 2025, to review financial reports, property tax exemptions, public safety funding, and neighborhood development initiatives. The committee received updates on the city's fiscal health, including a discussion of revenue shortfalls and the establishment of a corporate income tax reserve fund. Public commenters addressed retirement benefits, transparency regarding zoning changes, and the operations of the Land Bank board. Key outcomes included the approval of resolutions to send items to formal for public hearings, the authorization of additional funding for Community Violence Intervention (CVI) groups, and the scheduling of a hearing for the Bagley Neighborhood Enterprise Zone expansion.

Consent Calendar

• Minutes from the previous meeting were approved without objection.
• The committee moved directly to public comment after confirming a quorum.

Public Comments & Testimony

• William M. Davis expressed a desire for greater efforts to ensure city retirees are eligible for all available programs and requested extra allowances for retirees living within Detroit regarding property taxes. He also emphasized the need for greater awareness regarding HOPE exemptions.
• Tara Warwick (representing "Transparency Matters") raised concerns about the lack of transparency, questioning if council members or staff had personally read massive zoning change proposals before presenting them. She argued against rushing these changes before the election and requested that Land Board Zoom meetings be recorded and made available publicly. She noted that allowing the Land Bank to operate under current rules may be shifting decision-making power back to the mayor.
• Betty A. Barner (President of the Soda Ells World Block Association) shared information about a caregiver response program (RE:SPOND) offering services like house tours, food prep, and light construction, noting that it serves various income levels and requires a call to the executive director.
• Steve Wasco (calling from Chicago) criticized public officials for not answering previous questions. He mentioned the opening of a veterans housing facility housing 25 veterans and accused the board of police commissioners, mayor, city council, and school board of cheating. He threatened a significant increase in public noise and activity.

Discussion Items

Corporate Income Tax Reserve Fund & Financial Report (Line Item 6.4)

• Donnie Johnson (Acting Deputy CFO) and Valerie Agoli (Acting Treasurer) presented the financial report for the two months ended August 31, 2025. They clarified that the new corporate income tax reserve fund ($42 million) was funded strictly from the unassigned fund balance of the general fund, not from the retiree protection fund.
• Speaker Position (Committee Members): Councilmember Corley and Vice Chair Young expressed concern regarding a potential $500,000 shortfall in state revenue sharing due to the passed state budget. They questioned if austerity measures, layoffs, or service reductions would be necessary given economic pressures and unemployment trends.
• Donnie Johnson's Response: Johnson stated that while they expect reductions in statutory revenue sharing, they do not foresee a need for extreme austerity measures, layoffs, or service reductions. He emphasized that reserves and safeguards built over the last decade protect the city. He also noted that the city is on track to spend all ARPA funds by the December 31, 2026 deadline.
• Revenue Projections: The committee discussed a projected $61.1 million shortfall in municipal income tax, which the team expects to be partially offset by overperformance in wagering taxes. Treasurer Agoli cautioned that wagering taxes are volatile and cannot be relied upon to fill the entire income tax gap.

Property Tax Exemptions (Lines 6.2 & 6.3)

• Willie Donwell (Director, Property Assessment Board of Review) explained amendments to the 2025 and 2026 homeowner property exemption processes. The changes allow for the review of prior-year applications for homeowners who missed the original deadline, provided they did not previously file and were denied. This is to accommodate the new state statute (Public Act 191).
• Committee Action: Vice Chair Young requested clarifications on grammatical errors (scrivener's errors) to be corrected before the items were sent to formal.

Public Safety Funding & CVI (Line Item 6.6)

• Donnie Johnson introduced a resolution to authorize supplemental public safety funding for Community Violence Intervention (CVI). The state has allocated approximately $10.6 million, with 25% ($2.6 million) earmarked for non-law enforcement public safety expenditures like CVI.
• Committee Position (Member Santiago Romero): Expressed concern that 75% of the funds might be restricted to law enforcement. She asked if the city could use the remaining 75% to free up general fund dollars for community investments or shelters, rather than simply adding to the police budget.
• Committee Position (Vice Chair Young): Questioned whether analysis exists regarding the cost savings or lives saved by CVI programs. He suggested a study on economic impacts like property value increases in intervention areas. Johnson agreed to explore this analysis.
• Donnie Johnson's Clarification: The 25% is specifically for non-law enforcement (CVI). The remaining 75% is for public safety purposes (primarily law enforcement), though the exact boundaries are still being analyzed. He noted the funding is largely one-time and emphasized the need to avoid creating recurring expenses that cannot be sustained if state funding stops.

Neighborhood Enterprise Zone Expansion (Line Item 6.5)

• Alvin Horn (Deputy CFO and Assessor) discussed a request to expand the Bagley Neighborhood Enterprise Zone (NEZ). The expansion would add 499 parcels, bringing the total to 1,412 parcels and a new potential qualifying area of 255 homestead exemptions.
• Committee Position (Vice Chair Young): Expressed satisfaction that the expansion would not exceed the 15% state limit (currently at 13.78%) and noted Bagley is a smaller zone compared to others.
• Committee Action: The committee moved to set a public hearing for the expansion on November 5th (the day after the election) to accommodate the legislative calendar before the end of the fiscal year.

Willis Street Apartments PILOT Program (Line Item 6.7)

• Michelle Oberholser Zimmerman (Housing and Revitalization Department) presented a pilot program for the Willis Street Apartments to replace an existing NEZ abatement. Under the pilot, all 10 units will be rent-restricted (80% AMI), compared to the current abatement where 8 units are market rate.
• Committee Position (Member Corley): Asked if the Wayne County Treasurer has opted out of the pilot. The department confirmed that the county has not yet decided, though they expect to opt out based on past precedents.

Key Outcomes

• Line Item 6.1: Sent to formal for the introduction of an ordinance to reserve budget allocations for incoming elected officials.
• Line Item 6.2: Sent to formal with a recommendation to approve the 2025 property exemption amendment (pending scrivener's corrections).
• Line Item 6.3: Sent to formal with a recommendation to approve the 2026 property exemption guidelines.
• Line Item 6.4: Received and filed; the committee noted the financial outlook and confirmed the city is managing revenue shortfalls without austerity.
• Line Item 6.5: Approved to send the Bagley NEZ expansion request to formal and set a public hearing for November 5th.
• Line Item 6.6: Sent to formal with a recommendation to approve supplemental public safety funding for CVI, with instructions to continue analyzing the usage of the remaining 75% of the state allocation.
• Line Item 6.7: Sent to formal with a recommendation to approve the Willis Street Apartments PILOT program.
• Public Notices: The committee scheduled virtual meetings and policy sessions regarding the HOPE program and voting education for the upcoming election period.