Detroit City Council Budget, Audit, and Finance Committee Meeting – January 21, 2026

The Budget, Audit, and Finance Committee of the Detroit City Council met on January 21, 2026, to review the city’s financial report for the five months ending November 30, 2025, consider two Neighborhood Enterprise Zone (NEZ) applications, and receive annual reports from the Downtown Development Authority (DDA) and the 8 Mile Woodward Corridor Improvement Authority. The meeting included public testimony and member reports.

Public Comments & Testimony

• First caller (owner Papa): Expressed strong concern about the DDA annual report (Item 6.4), stating it appeared to have missing information and expenditures that do not benefit citizens. Questioned the 25-year TIFF end date (2051), alleged fraud in the DDA’s management, and noted inadequate income verification in city programs.
• William M. Davis: Supported auditing all entities receiving tax abatements and urged scrutiny of major corporations (e.g., Little Caesars Arena) that do not pay rent. Noted that past arena deals were poor for Detroit residents and that pensions were cut while corporations avoid fair taxation.
• Caller (phone ending 169): Quoted Sylvester Stallone, thanked council for praying for a colleague, and criticized council members for being “fake” and beholden to billionaires.
• Ruben James Crowley Jr.: Alleged widespread corruption in city government, referencing specific precinct officials and an ongoing murder investigation cover-up.
• Jadante Smith (Vice President, Helen Street Block Club): Described conflicts with city staff over property power of attorney issues and alleged election fraud, citing a 50-page lawsuit against a commissioner. Urged support for election integrity.

Discussion Items

• 6.1 – Financial Report for Five Months Ended November 30, 2025

  • Presented by Donnie Johnson (Acting Deputy CFO/Budget Director) and Valerie Goldie (Acting Deputy CFO/Treasurer).
  • Revenues overperformed, especially wagering taxes (year-to-date $24M over budget). Income taxes and property taxes also exceeded expectations, though corporate income tax was $6M lower than the prior year, partly due to the “one big beautiful bill” federal tax law.
  • Year-to-date operating surplus was $38.7M ($36.7M revenue overcollection + $2M expenditure underrun).
  • Projected annual revenue deficit of $32.2M, but with the corporate income tax reserve fund, the city expects a $25M surplus. The reserve is functioning as designed.
  • Vacancies decreased by 89 FTE month-over-month, largely due to seasonal layoffs in grounds maintenance. Police vacancies persist, but new recruits are being trained.
  • Councilmembers asked about property tax uncapping (Member Waters), vacancy savings (Member Waters), and employee remote work impacts (Member Waters, Vice Chair Johnson). CFO team acknowledged education and notification gaps for homebuyers and pledged to assess remote work effects.
  • The report was received and filed on a voice vote.

• 6.2 – NEZ Certificate: 2681 Lakewood Avenue (18 rental units)

  • Presented by Chris Gulach (CPC staff) and developer Yuri Logvin.
  • Building: three-level vacant apartment built 1923; estimated rehabilitation cost $540,000 ($30,000/unit); proposed rents $900/month (55-60% AMI). Developer plans to allocate about 50% of units to low-income veterans via Volunteers of America.
  • No ADA accessibility planned; parking to be acquired from Land Bank. Committee discussed financial feasibility and parking plans.
  • After technical delays, motion to send to formal with recommendation to approve passed despite one objection.

• 6.3 – NEZ Certificate: 250 Elliott Street (6 rental units)

  • Presented by Chris Gulach and developer Craig Jenkins.
  • Building: historic vacant structure in Brush Park; family-owned 30 years. Proposed investment $1M; proposed rents $2,500–$3,500/month (market rate). Developer indicated willingness to offer one unit at 80% AMI.
  • Councilmembers questioned affordability for Detroit residents and requested a detailed financial breakdown. Motion carried to bring item back in two weeks (February 4, 2026) with additional information.

• 6.4 – DDA and 8 Mile Woodward Corridor Improvement Authority Annual Reports (FY 2025)

  • Presented by Jennifer Conelos (DEGC) and Glenn Long (DEGC CFO).
  • DDA: Tax increment revenue captured was $56.99M (of a possible $63.88M due to delinquencies/brownfield adjustments). Bond debt refinanced in 2024 to allow faster paydown; official maturity 2048 but projected pay-off in 2038. Annual commitments include $900,000 for M1 Rail until 2039, stadium repair match, grants for downtown improvements, and $750,000 operating transfer to DDA. School tax capture continues through 2051, but state backfills school operating funds.
  • 8 Mile Woodward: TIFF plan approved for 12.1M developer reimbursement; halfway reached. Full reimbursement projected in 11–13 years.
  • Committee asked about DDA boundaries (includes Cass Tech) and potential support for public transit within the district. Reports were received and filed on a voice vote.

Key Outcomes

• Financial report for November 2025 received and filed.
• NEZ for 2681 Lakewood Avenue approved for formal submission (motion carried with one objection).
• NEZ for 250 Elliott Street postponed for two weeks pending a detailed financial breakdown.
• DDA and 8 Mile Woodward annual reports received and filed.
• Public comment period included five speakers. Public comment was cut off at 11:00 a.m.
• Chair reminded residents about snow removal and warming center programs.
• Upcoming community meetings: District 4 (Jan 26, Hope Community Church), District 7 (Jan 28, St. Susan Cody Rouge Center), and Deed Fraud Town Hall (Jan 31, Northwest Activity Center).