Detroit City Council Budget Finance and Audit Standing Committee Meeting - February 4, 2026

The Budget Finance and Audit Standing Committee met on Wednesday, February 4, 2026, to discuss property tax assessments, public comments, a neighborhood enterprise zone application, and the upcoming fiscal 2027 budget process. The meeting was called to order by the chair, with Councilmembers Denzel McCampbell, Letitia Johnson, and Mary Waters present.

Consent Calendar

• Approval of Minutes: The committee approved the minutes of previous meetings without objection.

Public Comments & Testimony

• Jadonte Smith (District 4 resident) criticized Councilmember Johnson for giving a Spirit of Detroit Award to a church with $69,000 in unpaid taxes. He urged keeping the Cover Girl Strip Club closed due to crime and prostitution concerns, and opposed the re-election of Conrad Mallet.
• Veronica Smith (Coalition for Property Tax Justice) presented a five-pillar plan for property tax reform in the first 100 days of the new administration, including replacing the assessor with a qualified one, enforcing the 2023 tax reform ordinance, stopping overassessment of lower-valued homes, protecting owner-occupant exemptions, and returning money to overtaxed homeowners.
• Betty A. Varner (President of DeSoda Elsewhere Black Association) advocated for the revitalization of the Finkel Corridor, including a new business and expansion of Diva Community Park.
• Brother Cunningham reported unshoveled bus stops and unreliable bus service, and recommended Peer Transit for seniors.
• William M. Davis (former city employee and police commissioner) called for transparency in the drainage fee and criticized police union contracts for superseding the city charter.
• Caller (Linwood area) reported unshoveled bus stops near Northwestern High School and complained about unresponsive council offices.
• Rada Caralho (Coalition for Property Tax Justice) again urged implementation of the five pillars.
• Damon (District 3 resident now in District 4) shared his family's foreclosure due to overassessment and called for compensation and protection of owner-occupant exemptions.
• Caller (referencing city code) warned about a class action lawsuit against the land bank for illegal nuisance abatement, and urged stopping land bank overreach.

Discussion Items

• Presentation by Office of Assessor: Deputy CFO and Assessor Alvin Horn and Deputy Assessor Cynthia Burton presented property tax assessment data for 2026. Key points:
  • Residential assessed values increased by 10% on average, but taxable value is capped at 2.7% for properties not sold in 2025.
  • 267 of 286 neighborhoods saw value increases; declines in areas near the airport and Packard plant due to demolitions.
  • The city uses a 24-month sales study (April 2023 to March 2025). Distress sales are excluded from valuation but inform neighborhood condition adjustments.
  • A 14-year data gap (mid-1990s to 2011) contributed to past overassessment issues.
  • The assessor's review appeals process runs February 1-22; the March Board of Review is required for further appeals to the Michigan Tax Tribunal.
  • Mayor's executive order mandates a mass appraisal report by 2027 and a complete economic condition factor (ECF) review by 2026.
  • The office is working on a public affairs position and social media outreach.
• Q&A with Councilmembers: Discussion covered:
  • Differences between assessed value and appraised value; persistence of biased appraisals.
  • Principal Residence Exemption (PRE) audits and LLC verification processes.
  • Impact of high millage rates (82.2 mills) stifling homeownership and small businesses.
  • The Hope program application process; the Board of Review's independent role.
  • The need for pre-sale inspections to protect first-time homebuyers.
• Unfinished Business - 6.1 (NEZ Certificate): Craig Jenkins proposed a rehabilitation of 250 Elliott Street into six rental units under the Neighborhood Enterprise Zone (NEZ). After Councilmember Johnson noted high proposed rents ($2,500-$3,000), Jenkins revised to $1,500/month. The item was postponed to bring in HRD. Later, Rebecca Labove (HRD) confirmed an affordability agreement could be drafted to codify the $1,500 rents at 80% AMI for the abatement term. The committee approved sending the item to formal session with a recommendation to approve, noting the pending agreement.
• New Business - 7.1-7.4 (Budget Process Resolutions): Councilmember Corley presented four resolutions: 7.1: Mayor's budget address on Monday, March 9, 2026 (moved from March 7 due to weekend). 7.2: Committee start times shifted to 9 a.m. and meeting durations to one hour from March 11 to April 6. 7.3: Public hearing on the budget set for 5 p.m. on Monday, March 30. 7.4: Final budget calendar to be set by February 25. The committee approved all four resolutions to formal session with unanimous recommendation.

Key Outcomes

• NEZ Certificate (6.1): Approved to move to formal session with recommendation to approve, contingent on an affordability agreement limiting rents to $1,500/month for six units at 80% AMI, to be finalized by Tuesday, February 10.
• Budget Process Resolutions (7.1-7.4): Approved for formal session, setting the 2027 budget process timeline.
• Long-Term Financial Obligation Memo (6.2): Postponed for two weeks pending review of OCFO information.
• Assessor's Office: Council requested district-level assessment data, copies of PRE audits, and continued outreach. The office committed to filling a public affairs position and improving social media presence.