We will move directly uh and go back to line item uh 7.2 contract number 6007513, 100% city funding to provide facility management services for DPSH contractor Jones Lang LaSalle America's total contract amount 2 million forty thousand dollars.

Motion to discuss again line item six uh seven point two motion here.

No objections that action shall be taken.

Uh Mr.

Washington, I believe we have Mr.

Short, correct, joining us.

That's correct, Mr.

Chair.

Okay, Mr.

Short.

Are you there?

Yes, I am.

Can everybody hear me?

Yes.

Uh the can you possibly can turn your camera on, sir?

Here can uh Mr.

Chair be happy to.

Thank you, sir.

There you go.

How's that?

Great.

If you can just give us a brief overview of contract number uh 6007513.

Be happy to, Chair.

Um, this contract is for the management of the public safety headquarters.

Uh, this is a two-year contract.

Uh Jones Langlacelles has had this uh has been operating this facility uh for approximately seven years.

Uh again, this uh provides management services, they take care of running the facility, handling uh all the aspects of maintenance and all any other related issues uh associated with this facility.

Uh, we oversee that uh uh contract, and um this is a small increase uh in the contract at uh uh went from about 80 that 80,000 a year to 80,000 a month to 83,000 a month.

So it's a relatively small increase.

Uh and again, uh this is uh the second uh contract with uh with the company.

Thank you.

Any questions from members?

Okay, hearing none, is there a motion to send line item 7.2 to uh formal with a recommendation to approve?

Motion hearing no objections, that action shall be taken.

Thank you, Mr.

Short.

Next thank you, Mr.

Chair.

Thank you.

Uh, I think we saw Mr.

Horn come in.

Is he still out in the hallway or no?

Okay.

We'll move back on to line it on 7.3, uh submitting a resolution of authorization for contract number 6007530 revenue to lease space for ATMs at DPD precincts and Detroit Detention Center contract the Huntington National Bank.

Uh the lease rate lease shall pay the lesser as rem the sum of 50 cents per transaction fee for each foreign transaction that exceeds 4,000.

And this is for the office uh office of the chief financial officer.

Motion to discuss line item 7.3.

Motion.

Thank you.

We have Ms.

Valerie Agalie joining us as well as Miss Elizabeth Johnson.

If we could promote them, please they both have been promoted, Mr.

Chair.

Thank you.

Oh my god, it's good.

Good afternoon, Mr.

Gali.

If you can state your name for the record, please.

Good afternoon, Valerie Agoalie, Deputy Um Chief Financial Officer and Treasurer Interim.

Um, I'm wondering too if we could have our deputy treasurer for cash flow management, Nirbari um promoted to give a summary of the contract.

He's been working on it very closely.

I'm Elizabeth Diana Johnson at the Office of Contracting and Procurement.

Good afternoon.

Uh Mr.

German and members of the committee, Normara, deputy treasurer.

Thank you.

Whoever would like to proceed.

I will start uh Mr.

Chairman.

Uh what we have before you this afternoon is an automated teller machines that Huntington, we would like Huntington to interstell at 10 police precincts and the Detroit detention center.

I just want to give us some background how we got here, uh, Mr.

Chairman, and that is uh until 2018.

Was City's main bank, and since that time, first Chemical Bank, which merged with TCF, and then with Huntington has been the city's main bank.

The genesis of the having these ATM machines at the police briefings and the distention center was to have our residents to have a safe place to withdraw cash.

And it is not something the bank makes money.

It's something we expect our main bank to provide to the citizens.

And since the Comeric and Hansen being our main banks in 2018, the last amendment, which was amendment number four, was approved in 2021.

And that five-year agreement is coming up to expire.

There has been four different treasurers that worked on this to get Chemical, TCF, and Huntington to agree to this.

And in fact, Terra Battel, you may remember Mr.

German and Member Yang that we came before you for our banking agreements in 20 early 2024.

And at that time, Treasurer Battel made it clear to Huntington it was time for them to take over this lease.

The hesitant has been the initial costs to deploy the machines as well as ongoing operating expenditures.

The difference between the current lease, which Comerica, which has nine briefings and Detroit Detroit Detention Center, is that the new lease would include 10 briefings.

We're adding the seventh precinct on Shane to the lease.

And the Detroit detention.

So that's why we have 11 locations.

Because of the cost involved, the bank has been very reluctant and finally agreed to take over the lease.

And that's why we have before you.

One is that the seventh briefing is added.

The fifth briefing included in the Comerica contract, but there was never ATM installed because there was no NF space in the lobby of that building.

My understanding is the fifth breaching moved from previous location to the current location on Connor, and there's no enough space.

And as a matter of fact, Huntington has a team that came out of the state that surveyed all these uh sites, and they did confirm there was no NF space in the lobby.

So that was really, even though it's included in the contract, there was never a machine there.

And then we added the seven, which I do not know unless um Johnson knows uh why it was never included.

Um the second thing I want to highlight is that that is different, is that these new machines uh provide the ability not only to disperse cash, which the Comerica's machine is currently do, but also the residents will be able to default deposit cash and checks in these machines.

Um the the agreement calls for a hundred and fifty-day period to deploy the machines as Camerica's machines move out.

Uh, one last thing I will say is that um the second briefing is currently under renovation, and we did inform Huntington that that probably should be at the bottom of the deployment list.

Mr.

Chairman, I'll stop.

Um this has been going on for a long time.

I want to publicly thank uh Ms.

Johnson and Miss Linda Bruden Allah who helped me through this.

It has been a long process to get to here.

Thank you.

Thank you.

Any questions from members?

Okay.

Thank you very much for your work on this, all of you.

Uh is there.

If you could attach a waiver, we would appreciate.

Uh waivers do not come in committee, sir.

They come uh in front of the entire body.

Uh, if this is to go out right now, and that would be on Tuesday.

But it duly noted uh if we Tuesday.

Thank you.

Thank you, sir.

Thank you.

Appreciate it.

Is there a motion to send line out of 7.3 to formal with the recommendation to approve?

Motion.

Hearing no objections, that action shall be taken.

Thank you all.

Thank you.

Uh member vice chair, if we can just jump ahead just very quickly.

Uh no, Mr.

Johnson has a prior commitment.

Um I want to jump to line item 7.5 through 7.8.

Uh off under the office of the chief financial officer slash office of budget line items.

We can take line items 7.5 and 7.6 together.

Uh, is there a motion to do so?

Motion.

Thank you.

Line item 7.5 is the fiscal impact of chapter 26 of the 2019 Detroit City Call Law Enforcement by renaming Article 3 to Citizen Patrol and dividing the article into two divisions, and line out of 7.6 is the fiscal impact of amendment to chapter 26 of the 2019 Detroit City Code, law enforcement by adding Article 5 release of incident footage motion to discuss both of them has already been made.

Thank you, Mr.

Member Vice Chair.

Mr.

Johnson, very quickly, if you can take us to through these.

I know you do have two reports.

Uh you got about five minutes to get through all of that, I'm sure.

So uh if you can uh take us through 7.5 and 7.6 first.

Yes, Mr.

Chair.

So item 7.5, the fiscal impact statement has determined that there will be no net fiscal impact on the city budget.

Um budget resources have already been budgeted, and this has now been baked into the baseline.

So no fiscal impact for this uh for this particular ordinance change, that being the change to the uh citizens patrol uh section.

And item 7.6, the um release of incident footage ordinance, um, the addition of Article 5, uh no net fiscal impact.

Um we expect any incident incremental workload is you know already would be absorbed by existing staff, and do it already has the technical resources they need to make this happen.

The only minor thing that may come up later with that is that do it may need to purchase an additional server to ensure additional server capacity for hosting more videos, but that's a very de minimis cost in the scheme of this.

So no meaningful fiscal impact for either ordinance change.

Thank you, member uh Mr.

Johnson.

That sounds as if no fiscal impact because we're only changing the name, and then we're changing procedure.

Uh so any way in from Mr.

Corley or anyone else very quickly.

Any questions from members?

Seeing none, is there a motion to receive and file line items 7.5 and 7.6?

Motion.

Hearing no objections, that action shall be taken.

Member Vice Chair, is there a motion to take up line items 7.7 and 7.8?

Motion.

Thank you, Member Vice Chair.

Line item 7.7 is the financial report for the three months end of September 30th, 2025.

And line item 7.8 is the large events reporting, July through September 2025, quarter one of fiscal year 2025 through 2026.

Member Johnson, the floor, or Miss Member Johnson, Mr.

Johnson, the floor is yours.

Thank you, Mr.

Chair.

Thank you for the promotion.

Um I am about to be careful what you be careful what you ask for.

Trust me.

Um all right.

Pulling up the presentation now.

Should we see in the financial presentation?

Um, all right.

So what we have uh as uh Mr.

Chair, as you said, this is the financial monthly financial report for the three months ended September 30th, 2025.

So this is the first quarter of the fiscal year.

Um the retirement our executive summary, we have the retirement systems um do plan to distribute their supplemental check to each retiree or beneficiary of the legacy or component two pension plans on December 1st of 2025.

And we did allocate 10 million dollars in the fiscal year 26 budget um for this what we call the 13th check.

Um it is currently estimated that general retirees or their beneficiaries will receive about 476 um in this check, and police and fire retirees or their beneficiaries will receive about $661 in their check.

So we like I said, we do expect that to um hit the retiree uh the pension check that will be on December 1st.

Um for our budget versus actuals for the year to date and the September period.

Um right now we are seeing fairly positive uh momentum in um the areas where we had previously been saying we would be seeing more negative momentum, and I want to caution um this body and the public that um we still do when we get to the next slide, anticipate that we are still going to have a shortfall in municipal income tax.

Treasurer Agoli will talk a little bit more when we get to the revenue slides about the details on this, but I just want to place that caution on there that this looks very positive, but when we annualize it and we look at the data trends, we're still expecting a much more conservative reality.

In terms of our expenses, a lot of what we're seeing here in the especially the period and the year-to-date variances, it's really a factor of timing.

So something like professional contractual services, we see that year to date we are underspent by $7.7 million.

As I've told this committee before, um, you know, we do our best to estimate in which period certain expenses might occur and certain invoices might arrive and get paid.

It really is our best guess based on you know prior experience and our knowledge of the operational cycle of the city.

And so in this case, our guess just didn't pan out to what really happened.

So it looks like we've had a lot of delays in expenses coming in that normally would have been around this time.

It's nothing to worry about.

It's just things are moving slower than expected.

Um, projects are probably moving a little slower, and invoicing is probably moving a little slower from vendors.

So I wouldn't take this as a sign that we're like on track for some major, major underspend.

It's simply too early in the fiscal year to make that kind of assumption.

Uh but this really is going to be a factor of timing.

Things just not coming in when we kind of estimated they might come in.

But on the whole, uh year to date, we're still showing a very positive surplus of almost uh 29.6 million dollars when you take into account the current revenues and the current expense state.

Um our annualized projection, as I said, we continue to project uh the September revenue conference numbers for our revenues, 61.1 million under on our municipal income taxes and a little bit under on our other revenues.

That's primarily driven by um uh interest earnings.

Um, and that being lower as we spin down some of our larger um pots of cash.

So ARPA, um bond funds, things like that.

That's that's bringing down our um earnings on investments.

It's still too early in the fiscal year to forecast expenses with any meaningful accuracy.

And so we continue to just run on the assumption that we will spend the entire budget as it is budgeted.

I think this committee knows and and I know as well that's probably that's not the real lived experience of the city, but it's just too early in the fiscal year for us to yet see any trends in expenses.

Um, and then at the very bottom of the slide, you can see that the 42 million that this body supported the administration in creating the corporate income tax reserve fund is doing what it is intended to do.

Um, as you see the annualized report, if our revenues do come in the way we are projecting them, then even if we did spend every dollar in the expenditure budget, we would still be in good shape because we had the foresight to put aside this money for that sort of rainy day, so to speak.

Um, so it's doing what it was expected to do, but I do expect as we move to the fiscal year, we will see underspend in a number of expenditure categories, and that surplus at the bottom will grow and our reliance on the reserve will shrink.

I'm fairly confident in that.

Having been here and done this a long time now, um, we do tend to see a little bit of underspend in some categories as we get deeper into the fiscal year.

Um major changes in our um uh continuing appropriations reconciliation, um, pretty much uh status quo, no real changes from the last time I presented this slide.

And then finally, for my part, the employee count monitoring slide.

Uh, we did see a minor decrease overall citywide in our total um headcount.

So we went uh down 24 positions.

You can see some of the big movers on here.

Um the fire department went down uh by 19.

That is a mix of it's a it's a handful of separations.

So folks who retired.

Um and the rest of it are going to be students from the academy who did not complete, either complete the academy or stay on as the academy uh class complete uh finished out.

Um so, you know, not anything to be concerned about.

Uh same with the um uh in terms of increases for the uh general services department of 10.

This is very positive news.

We are starting to see more success in our recruitment for things like in our grounds maintenance division and our recreation division.

And so this is good news that we're having some momentum there and we may be able to finally get enough staff on board uh to really help alleviate some of the pressures that General Services has been under.

So on the whole, relatively um stable, headcounts been relatively stable, no major movers and shakers um to to really note.

And then I'm gonna pass it over to uh Treasurer Agoli to talk about um revenues.

Um Treasurer.

Good afternoon again.

Um so I'm gonna start with the income tax collection slide.

Unfortunately I have to start and let you know about a correction that we need to make.

It's in the historical data on the right hand column for partnerships.

It says 213,000.

It should be 1.381 million.

This is something that we didn't discover until last night when Mr.

Corley sent an email with a number of questions, and we started to review that.

So I apologize for that mistake.

Again, that is only historical data that we didn't transfer properly.

So withholding compared to September 2024 year to date, fiscal year 25 has gone up by 5.6 million.

Individual income tax revenues is about the same.

Corporate revenues at this time is about 5.1 million less than it was a year ago.

And the partnerships with the corrected number is about 500,000 less than the same time last year.

When we will start to look at that more closely, we'll be at the end of the year and primarily at the beginning of the year as we prepare for our February revenue estimating conference.

The next page is the city's cash position.

And what this shows is how much cash we have in the bank at a certain point in time.

So at the end of September 2025, you can see we had 1.8 billion.

That's compared to September 2024, which was 2.3 billion.

Now, the fact that we have less cash isn't something that has to alarm us.

We recognize if we look at the variance why we have less cash, we're spending money on our capital projects, we're spending bond proceeds, et cetera, which is a good thing.

We've spent ARPA money.

You can see the balance of ARPA money now is 183 million compared to 423 million a year ago.

And so that's also a good thing that we're spending that money, otherwise that we should be doing.

So I just wanted to point that out on this uh cash position slide.

If we go to the next slide, this is the slide that tells us how much revenue we have coming in and how much we have going out the door, because we always want to make sure that we have enough cash on hand to make any of our payroll payments, to make um uh you know, to pay accounts payable, etc.

And so Nirbari and his team estimate that they look at actual and then they also estimate um to forecast the future to make sure that the ending common cash pool is strong.

We can see it's at 813 million um actual for the end of September and um remains strong for the next, I think they they do it out for a year.

So that's the purpose of this slide, so that um treasury and managing its cash is aware of what's expected to come in the door in terms of revenue and what we need to be prepared and have the appropriate cash for to make payments.

Again, it's different from revenues and expenditures.

This um slide focuses on cash itself.

The next slide is um the accounts payable and supplier payments slide.

Um Treasury does not manage the accounts payable process, but we still um I'll still review the slide.

Um I what I saw that was noteworthy, and I asked Director Pam Simon about the 28 um invoice count of 2861 plus, if that was concerning.

Um she shared that that is not concerning, those are could be duplicate invoices, um, invoices that were voided and credit memos.

The next slide um is uh a slide that we provide on a quarterly basis in the monthly OCFO reports.

And this shows um our collection rate now compared to the same time last year.

You can see, and this is for property taxes.

Our overall collection rate is about the same, 52%, what we expect.

Mr.

Corley in one of his questions did ask about the difference in the adjusted tax role for these snapshots, and we can see that's primarily in commercial.

But what I wanted to point out is this was a snapshot for the fiscal year 2025.

That would have been the first quarter of fiscal year 2025.

So the 12020, 122.3 million, those um did get adjusted.

Um some of those um uh tax liabilities are adjusted through the assessor's office.

So for example, if you looked at the June 30 2025 um FR um monthly uh OCFO report, you'd see that at that point the adjusted tax roll was down to 117 million, and then it gets rolled over to us by the assessor's office, and um uh the amount can go down, of course, when somebody disputes their assessment.

Um it's usually because they think it should be lower, and that's what adjustments do, um, not that it should be higher.

So the trend of seeing um that go down over the tax year is not surprising.

The next um slide is another quarterly um slide that we put.

It is the investment portfolio summary.

It shows all of the um investments for common cash, risk management, um, debt service, bond proceeds, uh um rainy day reserve, and the retiree protection fund.

So this gives details on um what um investments we have for each of those categories on the right hand side is a performance summary, um, and you can look through that to see, for example, common cash, the annualized effective rate is 4.4 percent.

Um, on the retiree protection trust fund, um, the annualized effective rate of return is 1.3%, and it's lower than what you would have seen last quarter.

Um, we know that interest rates are going down, and as well on this one, I think I've told the committee before that we're basically in harvest mode here.

Um there aren't any risky investments or anything like that.

We are just it's being structured so that when we need to make the payments um towards uh the pension funds, we're prepared to do that with the RPTF.

The next slide is also a quarterly report that we include.

Um we show that uh all of the payments that are to be made to the pension systems, and to demonstrate that um we are on track with that.

Finally, the last slide, and then there's an appendix with all of the detail is the debt service slide.

Um, one thing that you can note uh with the HUD 108 notes, those are no longer listed.

Um they were listed in the last quarterly, but at with having a principal outstanding of zero.

Um, the reason for that is that the HUD 108 notes were defeased in April 2022, excuse me, April 2025.

Um, the source to defease those notes were CDBG funds, and those are funds that um are set to expire.

And if uh the city doesn't spend those funds, we have the opportunity to use it to defease existing HUD 108 loans, and that was about three and a half million, and then there was a reserve for one of the um HUD 108 loans, the Fort Shelby of about 2 million, and that was also used to defease the HUD notes.

And that concludes my remarks.

Thank you very much.

Uh we'll go to questions from members, chair recognizes member vice chair.

Yeah, thank you.

Appreciate excellent questions.

Always good to see everybody.

I wanted to ask you one, why are the collection rates so low?

For all the for across the board.

I mean, I don't think any of them are above 60%.

Why are the collection rates so low?

And how much money are we leaving on the table?

So are you talking about the property tax collection rates?

Um, which is slide 12.

I'm talking about all of it, not for income for property taxes.

Yeah, not income tax.

I'm sorry, property tax.

Yeah, so um Mr.

Johnson, could you go to slide 12?

Thank you.

So this is um cumulative through the first quarter.

Um so that would be through the end of September.

So remember that you know, these collection rates will go up as we go through the tax year.

Okay.

In Detroit, you know, so far at this point, we've only we would have only collected summer property tax bills.

And in the city of Detroit, you have the option you can pay half of your summer property tax bill if you pay it by August 15th without any penalties or interest as long as you pay the remainder by January 15th.

So that's another reason why it just reflects the the lower collection rates, but but it will definitely go up as we go through the property tax year.

No, excellent.

I I I really appreciate that.

That is fantastic.

One, um, secondly, I wanted to ask you, um, I was looking at the debt service, and I just wanted to ask you, um, I because I forgot about this, but I but is there a certain amount of debt that the city can be able to have before um the Financial Review Commission or the emergency manager start sniffing around?

Um, you know, the city and Mr.

Johnson can correct me, but I think I know the response to this.

With respect to the Financial Review Commission, you know, it's important that we have the ability to issue debt on our own credit.

And um I think that was one of the requirements for us to move into the waiver status.

Um the city, we have a debt policy where we set limits on how much debt we think we should have, and each time we contemplate a new issue, we make sure that it falls within those limits.

That is something we've shared with the rating agencies that is um considered uh a strong feature of the city's um financial administration.

Uh but as far as FRC, I don't I'm not aware of any debt limits that they impose.

Okay, I just so so this is just basically so so what you're saying, the the reason why I'm asking this is because um potentially we're talking about going to a potential recession.

Uh, you know, I hope that doesn't happen, but that might happen.

And there might be some times where we might need to borrow for some of the programs that we might want to be able to continue if we so chose to continue that.

There might also be, I would think there might also be some social bonding that we might want to engage in for some programs that we want to deal with, particularly if we're serious about the issue of um dealing with poverty.

There's gonna have to be some things that we're gonna have to look at because we may not necessarily have the finances that we would need to be able to deal with that at that rate where the city itself without state help or without um without a lot of local um a lot of federal help.

And so I just want to know if we decided to start borrowing, you know, whether it was you know in terms of certain bonds.

I just want to know is there a certain limit that the state would have before that either triggers or before they start talking about you know uh doing you know another review commission or things of that nature.

And um, and I also and I also want to ask when you talk about borrowing, does does that include short-term borrowing?

So my tax anticipation um notes, my revenue anticipation notes, my uh my bans, and my bond anticipation notes.

So my bands, my rants, and my TANS.

Can I does that include that as well?

Yeah, so um here's the overview that um I can provide.

As far as as I indicated the financial review commission and that, um the statute related to that, uh there I'd have to look to see if there are any triggers.

Um, but uh that's not something that we consider.

We know because I don't think we're worried about that.

We know that that per state statute um outstanding debt is limited to 5% of the city's state equalized value.

Um now, so every time we do a borrowing, we look at that measurement, and of course, bond council make sure that we don't exceed that.

We are never, we haven't been very close to that limit.

It's um it's something that we must consider, but again, we look at, and it does include short-term debt as well, if it's outstanding.

Um, but but again, we look at our internal limits on what we think is uh reasonable for the city and work with the CFO um as she would determine what is appropriate.

We do know, you know, if we borrow too much, of course that would impact our credit ratings, et cetera.

So there are other checks and balances out there that that make sure that you don't go too far.

Okay.

No, thank you.

I I I appreciate that.

And then this is gonna be my final question, and I'm gonna wrap up.

Um, Mr.

Anderson, uh it's something that's a little bit different, but um and I'm probably gonna be wrong about this, but I'm just gonna say this anyway.

Um, as we all know that you know we collect property taxes, and part of collected property tax is the value of those properties and value of the property can go down via crime, particularly property crime.

Um the state passed legislation banning cities through uh I think it's preemption laws from being able to raise our own wages, their own minimum wage.

Studies have shown that if you raise the minimum wage, um property crime reduces.

Property crime reduces, property values go up, property values go up, that's more tax dollars going into our coffers.

Um there is a constitutional um protional um amendment, I forgot what it was.

I think it was like article like uh 929 or something like that.

But it talks about how um the state cannot provide unfunded mandates to the uh municipalities.

Um to me, kind of in the reverse sense, but the fact that we cannot be able to have more money because we can't in our to our coffers because we can't raise them in the wage, would that potentially be seen as an unfunded mandate because we are having less money coming into our coffers because we don't have the ability to be able to raise wages that could then potentially reduce uh proper crime, which could raise money.

So we're having less money coming into our coffers, and we're still having to provide services.

So wouldn't that be considered an unfunded mandate?

And then wouldn't that be actionable legally?

I'm not saying that we can't have something executive have to do, but I'm just saying I know that's a lot, but through the chair to council member young.

That that does uh I was not prepared to touch on constitutional property and tax law all at once there.

But it it is it's it's a fantastic question.

It's something that absolutely is worth the attention and watching how things develop and seeing if that is something that would be worth pursuing, or at the very least, watching how other factors evolve over time to see if things might be more beneficial to pursue something more legislatively or through the courts.

Um, but but at this time it it would be it would be just a lot of speculation on my end.

Okay.

Hold on.

Thank you, Mr.

Chair.

Thank you, Member Vice Chair.

Uh no questions from me, Mr.

Corley.

Thank you, Mr.

Chair.

Uh first of all, I think it's good news that the uh HUD notes were fully uh defeased.

That means that we would no longer the city would no longer need to use um black rant dollars to pay the debt service on those HUD notes.

Um so that means that's more you know, black man dollars available for the neighborhoods.

So I think that's a good thing.

Um I do appreciate the cautionary note on income taxes.

Uh it looked, you know, fairly good, you know, going through uh September 30th.

But we know that there's um circumstances out there that may change that that picture.

We know that the terrorist policy is still having a negative impact um on businesses.

Um we know that the big beautiful bill um passed by President Trump back in July is having um some good things in terms of uh corporations, but on the on the on the flip side, and that's why city council prudently uh agreed to put aside 42 million dollars for the corporate income tax uh potential shortfall because that's the negative side for for cities cities to deal with.

Um other than that, you know, we looked at the cash flow, and uh we thought that maybe there was an accounting of cash flow in terms of state revenue sharing that was not accounted for.

Um, but it's not a it's not a you know a major issue.

So we we'll keep looking at that um moving forward.

Other than that, um I appreciate the responses to our questions uh on this on this report, and um I'm fine with it.

Thank you so much.

Thank you, Mr.

Corley.

Thank you, Member Vice Chairman.

Chair.

I'm sorry.

Uh through the chair, may I quickly I had forgotten to answer Mr.

Corley's question about revenue sharing.

It'll just take one minute if I can address it.

You may go ahead.

Okay, he was wondering why the revenue sharing did not show up as a revenue in the budget versus actual, but it did um in our cash flow analysis.

And the reason for that is um as you as he had assumed, the um uh we get August and June payments.

I'm sorry, the June and the August payments.

Um the August payment accrues to the prior year, as you thought, and that's why it does not show in the budget versus actual.

But this year for the June payment, we didn't receive it until July 1.

So that's why that cash was reflected.

And then the August payment was also reflected in in the cash tables.

Thank you.

Thank you.

All right.

Uh seeing no further questions.

Is there a motion to receive and file line 7.7?

Motion.

Hearing no objections, that action shall be taken.

We'll move right on to line item 7.8, large events reporting, July, September to 2025.

Mr.

Johnson, if you can briefly take us through this, uh, I would appreciate that.

Yeah, I believe.

Oh, I'm sorry, go ahead.

No, no, so sorry.

Um, so I believe that Neveris Nazarko is on the call.

Um, he's the agency CFO who for police department, and he um is closer to the special events report, so he was going to be joining me for this.

Okay, Mr.

Narco, if you can be promoted.

He has been promoted, Mr.

Chair.

Thank you.

Good afternoon, Mr.

Chair.

Uh, can you hear me?

Yes, sir.

Yep.

Uh I'm Neverus Nazarko.

I am the agency CFO for Detroit Police Department, and I will uh go over uh the large event uh reports with your permission.

You may proceed.

Uh thank you.

If uh I may share uh the screen as well, but just to remind the public that a large event for the city of Detroit uh is an event that qualifies uh based on the council approved permit uh uh requirement, as well as uh the attendance, the actual or anticipated attendance in excess of 1500 uh uh people uh in that particular gathering.

So if I can share here, I'm going to share my screen.

Uh this report is for the first quarter of this fiscal year, uh, meaning for the quarter ending.

Uh do you see the uh report, Mr.

Chair?

I do not.

We see your home screen.

Then I should be able to stop sharing here.

Share the okay.

Now you should.

Now you should.

Okay, yeah, we can see.

Yes, yes.

Uh so the uh this uh report uh pertains to the quarter ending September 30, 2025.

And uh the police department along with the fire department uh brought in uh 629,210 dollars in revenue from the large events.

Uh broken down uh is that uh on this uh uh uh worksheet uh police department uh 520,356 and fire department 100 eight thousand eight fifty-three.

In the document that was submitted to the city council by the chief deputy CFO, Mr.

John Neglik.

Uh the uh the events are broken down by the date when it happened, uh, the location, the uh type of the event, uh the the description of the event, and then a DPD or the uh fire department uh particular revenue.

Uh Mr.

Chair, earlier uh during the public comments, I believe, or during the public uh speaking, there was a question uh which I want to address with your permission, asking as to why some events have uh uh uh fire department has charged uh um uh fees or has billed those uh organizers and the DPD hasn't.

Uh and again, uh through the chair, uh the the situation, for example, as you can see here uh on on the screen.

Uh one event uh uh K Sha called, for example, there was a DPD required presence uh officers who are present there, and therefore, based on the approved rates by the city council, we charge, we build them and uh uh accordingly.

Uh however, there are some events, such as uh uh there is one uh uh sale Detroit, for example, that uh fire department had uh fees charged and collected, and the DPD did not.

And usually those events pertain to the ones that that are held at the uh plaza uh downtown Detroit that uh that uh they either use private security, uh and uh in any event they do not require uh they have not asked for uh police presence.

So that's the short answer to that.

The events that uh that uh police the department participates, we charge the uh the fees accordingly, and the one or jointly uh the ones that uh uh the uh fire department does.

Uh we both both departments, uh DPD and DFD, uh uh build uh separately and uh uh compute the the amounts based on the resources that are needed for uh for that particular event.

So this being the first quarter, the only other item that uh or uh I'd like to add is that uh this quarter revenue compared to the uh same uh period the last fiscal year.

Uh last fiscal year we brought 564,000 uh jointly with the fire department on the special events, and this quarter the amount is slightly up at $629,000.

And that, Mr.

Chair, uh concludes my reporting on special events.

Uh the document has been timely submitted to city council, and I'd be happy to answer any questions uh you may have.

Thank you, sir.

Any questions?

Mr.

Corley.

Quick one, Mr.

Chair.

Thank you.

So the uh for instance in this quarter, the 520 uh thousand that goes to the police department.

Likewise with 109,000, that goes to the fire department.

Uh yes, Mr.

Cole through the chair.

Uh those amount of the respective amounts, they go to the respective budgets, 526,000 to the police department and 108,000 to the fire department in the general fund.

Thank you.

Any questions?

Seeing none, is there a motion to receive and file line item 7.8?

Motion.

Here no objections, that action shall be taken.

We are going to jump back now to line item 7.1.

Submitting a resolution of authorization for contract number 6007 148, 100% city funding to provide a mobile field app to enhance the efficiency of property assessments during appraisal work.

Contractor pivot point partners LLC total contract amount 597,762 and 50 uh 50 cents.

Uh we have our assessor Mr.

Horn joining us motion to discuss motion.

Thank you, Member Vice Chair.

And if we can promote Mr.

Horn.

Mr.

Horn has been promoted, sir.

Good afternoon.

Mr.

Chair.

Good afternoon, Mr.

Horn.

If you can state your name for the record, sir and proceed.

Thank you for joining.

Thank you, Mr.

Chair.

Mr.

Young, Councilmember Young, Alvin Horn, Deputy CFO and Assessor for the Safe Detroit.

And if you can just give us a brief overview of this contract.

Yes, sir.

Tivot Point is a mobile field application used by most of the major assessing officers in the state of Michigan.

Grand Rapids, Oakland County Equalization, Troy, for example.

It allows our appraisal staff to do 75% of their work in the field.

They can go to a property, they can take pictures, they can make their comments, they can measure, they can take note of any structural deficiencies, and then transmit that directly back to our camera system, our computer assisted mass appraisal system.

So it has been shown throughout the state to improve with operational efficiencies up to 40%.

It allows us to better make better use of our resources.

It is a substantial improvement over the over the uh the mobile device that we've been using for the last several years, which is somewhat dated.

Okay.

Any questions on this?

Chair recognizes member vice chair young.

Yes, excellent, sir.

Thank you for that.

Um I don't have any questions for you.

Do we have anybody from uh Dewey that is here that can answer some of my questions about this app?

Uh no, sir.

We did not ask you it to join us, but I might be able to answer um any questions you may have regarding the application itself.

I'm I'm quite familiar with it.

Okay.

Well, I know Mr.

Washington, I asked Mr.

Washington about this earlier, and so I just wanted to see were you able to contact anybody, Mr.

Washington?

Yes, sir, the chair Art Thompson is online.

Okay, sir.

Not that I don't like talking to you, Mr.

Treasurer.

The chair he should be joining.

He's just jumping off another minute to rejoin.

No problem.

Leafy is in the queue.

Art Thompson has been promoted.

He's now rejoining the way of webinar.

Excellent.

Thank you.

Thank you, Mr.

Assessor.

Mr.

Thompson.

Good afternoon, sir.

Please state your name for the record.

Good afternoon, Art Thompson, Chief Information Officer for the City of Detroit.

Thank you, and please proceed.

All right, excellent.

Thank you, Mr.

Thompson.

Always good to see you, sir.

Listen, the reason why I'll call is because it is a little bit out there, but I just had some concerns for my own um understanding.

So we have this mobile app that's going to be used for the purposes of assessment.

I think that's a real good idea.

But I just want to know uh is this secure from hacking?

Is this secure from you know, folks like one to clone people's phones and then from doing that, being able to use this to manipulate the uh property data that we might be able to have through I'm not saying that we shouldn't do this, like we should use this technology.

I'm all for it.

I want to go uh a a couple steps a couple steps further with you know blockchains and things that nature, but I know we're not there yet, but I just want to know from a cyber security standpoint.

Are we okay with this type of technology?

What kind of protections do we have?

Yes, through the chair.

Um, you know, one of the biggest things that I think we we take pride in is we really reshaped how we do uh our contractors with all of our vendors for technology solutions.

Um, and so things like making sure that they're meeting um federal requirements.

One of the ones, for example, with this contract is ISO 200 27,001.

Um that just gives us checks and balances from a logging perspective.

If people go in and were to manipulate or change uh things within, you know, assessments, we get logging of that uh within the applications.

We're able to, you know, make sure there's controls on that.

Uh, but this application specifically, um, I just was going over the contract to make sure I was freshened up on it.

Uh does not have you know Bluetooth capability.

So for someone to try to kind of remote in or or you know, clone the phone or clone data, uh, it wouldn't be possible with this application.

Um, so not to say that you know they're of course future proof, uh, but I do feel very confident that you know they they definitely are a secure application and one that we've got good controls around, uh, as well as making sure that any type of breach or cyber incident has to be reported to the city, and that's in the contract, which is one of the biggest things that we have is you know, cyber criminals become more and more creative.

We want to make sure that our vendors have transparency and aren't hiding or trying to, you know, go around any process that we have in place to make sure that we can get to the bottom of any incident that may occur.

No, no, that that's that's that's that's very good.

I just want to make sure that includes just any information about the property itself that would lead to the valuation of the property in terms of changing certain things, you know, that the that the app might be looking at in terms of why it's worth this amount based on the structures, based on the conditions, based on the interior or neighborhood, et cetera.

I just want to make sure that all that's that all that is safe for people being able to change, people being able to hack from that sort of thing, just so we have consistency in terms of that because you don't want something where um because you know people were overassessed, you know, or underassessed because uh information has been manipulated in order to do so.

I just want to make sure that that is secure when it comes to this.

Yes, sir.

Is this something where we would it would where it'd be connected to people making payments via you know, like kiosks and things that nature, or is this just primarily just the um the uh assessment process, and that's it?

Correct, yes, sir.

This is just the assessment process, and the data is not stored locally.

It all reverts back to you know a centralized location, so it's not on the phone uh accessible for people to tamper.

Okay, excellent.

No, that that was all the questions I had.

So thank you for your time.

I appreciate it.

Thank you, Mr.

Treasurer.

I appreciate it, sir.

Yeah, thank you.

Thank you.

Thank you, member vice chair.

Mr.

Chair, if I may to uh to further uh assure the vice chair, sir.

No one person in the assessor's office can change a value.

We have a number of safeguards to prevent that from happening in any circumstance.

It takes the the appraiser in the field can only make a recommendation, which the immediate senior appraiser has to approve.

It goes to a supervisor for final signature, and then a manager has to counter sign it.

So no one or two or even three people can change a value in this office.

There's a number of safeguards prevent that from happening.

So that's so that's for changes and for append as well or appendixes as well, correct?

Yes, anything evolving the the change or manipulation or adding to has to go through multiple safeguards and approvals before that happens, correct?

Yes, sir.

We've learned our lesson.

I appreciate it.

Thank you.

Thank you, Chair.

I'm done.

Thank you, Member Vice Chair.

Any further questions?

Okay, hearing none.

Is there a motion to send line item 7.1 to formal with a recommendation to approve?

Motion.

Hearing no objections, and that action shall be taken.

Thank you very much, gentlemen.

Thank you, sir.

Next we'll move to line item 7.4, submitting a resolution of authorization for amendment one light duty vehicle purchase slash lease and ancillary services or ancillary, excuse me, services.

Schedule 6, 100% city funding.

Amendment one to add additional contractors for Detroit Supply Schedule Number Six, Light Duty Vehicle Purchase Slash Lease and ancillary services, schedule six, schedule period upon uh council approval June 30th, 2029.

Total maximum order limitation, 135 million dollars.

Is there a motion to discuss line item 7.4?

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

We've got Mr.

Donnie Johnson joining us for line item 7.4.

Sir.

Yes, thank you, Mr.

Chair.

Uh, just again for the record, Donnie Johnson, acting deputy CFO and budget director for the city.

Um, this item is to we're just adding another vendor to the supply schedule, just means we have more folks available for us to um utilize for uh vehicle purchases.

I did receive a couple questions from Mr.

Corley that I would like to answer for the benefit of everybody.

Um, and you know, the question was would our master installment purchase agreement does this essentially does this tie into our use of our master installment purchase agreement and things like that?

The short answer is yes.

Um, having these vendors available through the supply schedule means that we can you know quickly um utilize our installment purchase agreement to purchase vehicles um and get them in and and do what we need to do there.

The other question was related to you know, once that 55 million for the vehicles on the IPA is exhausted, you know, will we need to find another funding source?

And the answer is yes.

So um we still have not yet decided whether another IPA is gonna be the solution or another funding solution.

Um, but we continue to look at that based on the current interest rate environment and and what might be best uh for the city in the long run.

Um obviously replacing the fleet and and vehicles and the compati in the volume that we do as a city, our size, yeah, it's it's a lot, right?

We're not just buying two or three cars at a time.

So we really have to be thoughtful about what um strategy is going to be best for us to do.

So it's always helpful for us to have additional vendors available via the supply schedule so that we can make those you know rapid decisions to purchase vehicles um when that funding is available, strike while the iron is hot, so to speak.

Okay.

Uh we also are joined by uh Mr.

Weatherup.

Anything to add apologies for the delay.

Uh Alex Weatherup, Assistant Director General Services, and no, Donnie nailed it.

And Mr.

Edwards, anything you would like to add?

Uh the Hillary Edwards uh Office of Contracting and Procurement, and through the chair, just to add a little bit of context relative to the vendor, they're a Detroit-based vendor located right next to the city, Detroit City Airport.

They have three locations in Kansas City, Avon Lake, Ohio, and St.

Louis, Missouri, but they are Detroit based.

And they do have a contract currently with the city relative to animal control vehicles.

They want that program as the most competitive supplier.

We did do a review with the city, uh GSD and the animal control unit group, and they were very impressed.

And just based on you know their competitiveness and their overall capability, we request to add them to the um DSS six relative to upfitting, in which that is an area where we need more competition.

Okay, thank you.

Any questions?

Uh hearing none, uh, is there a motion to send line item 7.4 to formal with a recommendation to approve?

Motion.

Hearing no objections, that action shall be taken.

Thank you very much, gentlemen.

And I believe that brings us to the end of our agenda, if I'm correct, madam clerk.

I think we got all the items.

All right, thank you so much.

We'll go to member reports.

Chair recognizes member vice chair.

Negative.

All right, and for my member report, again, it has been an honor uh to serve on this committee as the chair.

Thank you all again for your work.

Uh some of the long days.

Uh, and this is a great time to finally say the budget finance and audit standing committee will stand adjourned.

Chair recognized wouldn't be a member, vice chair.

Yeah, chair recognizes you, sir.

I just want to say it will be my honor and privilege to uh it's my honor and privilege to work with such great professionals every day.

Uh you've had the impossible task of uh making me uh look like I know what I'm talking about, so I appreciate that significantly.

Uh also, Mr.

Chair, you and your steadfast leadership will be uh truly missed.

But uh when God closes the door, he opens up a window.

So as sad as I am to see you depart, I am very happy to see what your next step is gonna be.

I know it's gonna be great things, and uh the people are looking forward to it.

So I just want to say thank you.

And I also want to say uh thank you to your father as well, because before I had the pleasure of serving with you, I actually served with him for a very long time, and he imparted a lot of great wisdom on me and uh really taught me what it is like to be a hair professional.

You know, if I would have followed a lot of what he told me, my career probably would have been ended up a lot better, quite frankly.

Now that I look back on it, it wouldn't have been this rough.

You know, I was kind of rough around the edges when I first got started, y'all.

So I'm not what I am today.

So um, so I just want to say uh from the bottom of my heart, uh, you will truly be missed, and it was my honor and privilege to serve with you and everybody here.

And so if I don't see you, uh happy holidays.

Thank you, and member vice chair.

Let me clear one thing up.

No one can make you look smarter than you actually are because you are that smart and intelligent, my brother.

And uh as always been a pleasure to serve with you on the state level.

Now on the city level, uh I anticipate I won't be that far.

Um, but I know uh this council is in good hands with the folks that we're leaving with and particularly you uh because we've seen your service over the years.

So I appreciate your friendship and your brotherhood uh in serving with you as well as member Sanjay Agaromero, who cannot be with us today doing uh due to uh something that she is working on for our residents in the city as well.

So uh honor to truly truly an honor to serve with her.

Uh now that being said, the budget finance and audit standing committee will stand adjourned at the call of the chair.