Budget Finance & Audit Committee Meeting: November 19, 2025
Budget Finance & Audit Committee Meeting: November 19, 2025
The Budget Finance and Audit Committee convened on November 19, 2025, to review multiple contract authorizations, financial reports, and operational updates for the City of Detroit. The meeting featured presentations from city officials regarding facility management, banking services, fiscal impacts of code changes, quarterly financial performance, and technology contracts. Several members, including the incoming Vice Chair, bid farewell to the outgoing Chair during the concluding reports. All agenda items were discussed and approved with unanimous consent.
Consent Calendar
- Line Item 7.2 (Contract #6007513): Approved a two-year extension for Jones Lang LaSalle America to manage the Public Safety Headquarters facility. The contract amount increased from approximately $80,000/month to $83,000/month.
- Line Item 7.3 (Contract #6007530): Approved a lease resolution with Huntington National Bank to install and operate ATMs at 10 police precincts and the Detroit Detention Center (11 total locations). The rate is capped at $0.50 per foreign transaction exceeding $4,000.
- Line Item 7.4 (Amendment to Schedule 6): Approved the addition of a new Detroit-based vendor to the Light Duty Vehicle Purchase/Lease contract, expanding the maximum order limitation to $135 million through June 30, 2029.
- Line Item 7.1 (Contract #6007148): Approved a contract with Pivot Point Partners LLC for a mobile field application to enhance property assessment efficiency, with a total cost of $597,762.50.
- Line Items 7.5 & 7.6: Received and filed fiscal impact statements for ordinances changing the Citizen Patrol article and adding incident footage release provisions; both determined to have no net fiscal impact.
- Line Items 7.7 & 7.8: Received and filed the Q1 FY2025-2026 Financial Report (ended Sept 30, 2025) and the Large Events Reporting for July-September 2025.
Public Comments & Testimony
- No specific public testimony from citizens was recorded during this specific transcript segment; public interaction was limited to questions and clarifications from committee members.
Discussion Items
- Contract #6007513 (Facility Management): Mr. Short (Department of Public Safety & Homeland Security) confirmed the contract covers the management of the Public Safety HQ, including maintenance, with a small fee increase of $3,000/month.
- Contract #6007530 (ATM Lease): Deputy Chief Financial Officer Valerie Agalle and Deputy Treasurer Nirbari presented the background, noting the transition from Comerica/TCF to Huntington. Key discussion points included the addition of the 7th Precinct on Chalmers and the upgrade to allow cash deposits in new machines. Ms. Elizabeth Johnson (Office of Contracting and Procurement) clarified site survey findings regarding the 5th Precinct.
- Fiscal Impact Statements (7.5 & 7.6): Mr. Johnson clarified that neither the renaming of the Citizen Patrol division nor the new incident footage article imposes a fiscal burden, though a potential minor server purchase for video hosting was noted as a future de minimis cost.
- Q1 Financial Report (7.7): Treasurer Agalle and CFO Mr. Johnson (Nirbari) presented the financial overview.
- Correction: A data error in historical partnership income tax revenue was corrected ($1.381 million vs $213,000).
- Cash Position: Cash balance stood at $1.8 billion as of September 2025, down from $2.3 billion the prior year due to capital project spending and ARPA expenditure ($183M remaining).
- Revenue Caution: Despite a positive year-to-date surplus of nearly $29.6 million, officials cautioned that a shortfall in municipal income tax is still anticipated based on annualized trends.
- Retirement Checks: A supplemental 13th check is scheduled for December 1, 2025. Estimated payouts are $476 for general retirees and $661 for police/fire retirees.
- Debt Inquiry: Vice Chair Young inquired about debt limits regarding the Financial Review Commission (FRC). The CFO confirmed the statutory limit is 5% of State Equalized Value but noted the FRC does not impose specific operational debt limits beyond this.
- Wage Preemption Question: Vice Chair Young raised a theoretical question about whether state preemption on minimum wages constitutes an unfunded mandate; the Chair noted it was a complex legal matter requiring further review.
- Large Events Report (7.8): CFO of the Police Department, Neverus Nazarko, reported $629,210 in revenue from events (DPD: $520,356; DFD: $108,853). Clarification was provided that non-police events in downtown plazas do not incur DPD charges if private security is used.
- Mobile Assessment App (7.1): Mr. Horn (Deputy Assessor) explained the app improves efficiency by 40% by allowing field data entry.
- Security Concerns: Vice Chair Young requested assurance against data manipulation. CIO Art Thompson confirmed the app has no Bluetooth capability, data is not stored locally, and utilizes ISO 27001 standards with extensive logging and breach reporting requirements. Mr. Horn detailed internal safeguards requiring multi-level approvals (appraiser -> senior appraiser -> supervisor -> manager) to change any property value.
- Vehicle Schedule Amendment (7.4): Acting Deputy CFO Donnie Johnson confirmed the addition of a new Detroit-based vendor enhances competition. The new vendor currently services the Animal Control fleet. Questions were answered regarding the Master Installment Purchase Agreement (IPA) funding, with the department acknowledging the need to secure new funding sources once the current $5.5 million IPA limit is exhausted.
Key Outcomes
- Approval of Line Item 7.2: Motion passed unanimously to approve the facility management contract extension with Jones Lang LaSalle America ($2,040,000 total).
- Approval of Line Item 7.3: Motion passed unanimously to authorize the Huntington National Bank ATM lease.
- Approval of Line Items 7.5 & 7.6: Motion passed unanimously to receive and file the fiscal impact reports (no fiscal impact determined).
- Approval of Line Item 7.7: Motion passed unanimously to receive and file the Q1 FY2025-2026 Financial Report.
- Approval of Line Item 7.8: Motion passed unanimously to receive and file the Large Events Reporting.
- Approval of Line Item 7.1: Motion passed unanimously to approve the mobile field app contract with Pivot Point Partners LLC ($597,762.50).
- Approval of Line Item 7.4: Motion passed unanimously to amend the Light Duty Vehicle Schedule to add a new vendor (Total max limit: $135M).
- Adjournment: The committee formally adjourned following closing remarks from the outgoing Chair and incoming Vice Chair.
Meeting Transcript
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.
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