OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Detroit City Council Budget, Finance & Audit Committee Meeting - February 25, 2026

City Council — Wednesday, February 25, 2026
BodyDetroit, Michigan
SessionCity Council
DateWednesday, February 25, 2026
StatusFILED
Video Record
0:00 / 1:12:35

Transcript — Verbatim
0:00

To order with the Madam Clerk please call the roll.

0:03

Councilmember Dizale Anton McCampbell.

0:05

Present.

0:06

Councilmember Letitia Johnson.

0:08

Present.

0:08

Councilmember Mary Waters.

0:10

Present.

0:10

Mr.

0:10

Chair, you have a quorum present.

0:12

Thank you so much, Madam Clerk.

0:13

Um that'll move us on to the approval of minutes.

0:16

Um members should have received the minutes.

0:18

Is there a motion to approve?

0:20

Motion.

0:21

All right.

0:21

Um any objections?

0:23

Without any objections, the action shall be taken.

0:26

Don't move us on to chair remarks.

0:27

I would just keep it very brief.

0:29

We do have a 2 p.m.

0:30

Uh C B C D B G.

0:33

I always get the acting around.

0:35

The CDBG um hearing, so we will get through as much as we can with budget financial audit, but just want to let folks know that.

0:44

And with that, we will move on to public comment.

0:47

Because we are on time constraints.

0:49

I am going to give folks um one minute on public comment.

0:55

I understand that is very that is a low number, but as folks know in this committee, I try to give folks their full two minutes, but we are at time constraints.

1:03

So we'll have one minute for public comment.

1:05

Um that will the request for public comment will end at 127.

1:10

Um, and um also before we move on to public comment, I'm going to uh uh open up the 115 presentation on uh water revenue and then we'll recess their presentation at the call of the chair.

1:27

So with public comment, uh do we have someone in the audience?

1:30

I believe we have one person in the audience, and how many if you are on Zoom, please use the raise hand function if you like to give public comment.

1:38

Um we'll start with folks in the audience here.

1:41

If you come to the front here, uh to the chair.

1:47

Good afternoon.

1:48

Um if you just want to state your name and then give your public comment.

1:52

Uh Russ Ballant and I uh uh want to raise uh the question through the committee, uh, which I understand the officer's chief financial officer will answer today in the meeting about the um the revenue estimating conference data that I reported to city council eight days ago.

2:11

Um the fiscal year 25 showed 590 million dollars round slightly rounded in revenue, but the fiscal year 26, our current year was estimating 724.4 uh about 135 million dollar increase.

2:28

And I was asking what the basis was for that increase and whether that whole 725 uh 724.4 million is coming from uh customer accounts.

2:40

And so I would like to know how much DWSD will actually be collecting in fiscal year 2026 based on the best estimates.

2:48

And I also take note of uh uh on the page 13 of that report, it says in uh uh bullet that DWS to me include bonds and other funds not reported in revenue actuals and why they're using the years a different I know uh the time.

3:05

Why are they using those I gotta cut you on reporting fiscal years in a different way?

3:09

Thank you.

3:10

That causes confusion.

3:12

Thank you.

3:13

Yeah, all right.

3:14

Um Zoom, how many folks do we have on zone?

3:17

Hi, Mr.

3:18

Chair.

3:18

We have seven hands raised right now.

3:21

All right, um, let's who's the first caller?

3:23

Yep, our first uh speaker is owner Papa.

3:27

All right, Miss Hughes, good afternoon.

3:29

You have one minute good afternoon, and through the chair, may I be heard?

3:35

Yes, you may.

3:36

Many times I would rather hear Rust Ballot than what you guys are saying at the table.

3:40

He's giving information and you don't want it disseminated.

3:43

I'm looking at 6.1, which is the citywide payroll performance audit.

3:47

I looked at that audience a couple of weeks ago and now it's unavailable.

3:50

I would like to know where that audit is and where the discussion around that audit will will begin.

Discussion Breakdown — Share of Meeting
Water And Wastewater Management████████████████████████████28%
Budget██████████████████████████26%
Procedural█████████████13%
Public Comment████████████12%
Zoning and Land Use████████8%
Historic Preservation█████5%
Public Works███3%
Public Engagement██2%
Public Safety█1%
Summary of Proceedings

Detroit City Council Budget, Finance & Audit Committee Meeting - February 25, 2026

The Budget, Finance, and Audit (BFA) Standing Committee of the Detroit City Council met on February 25, 2026, to address a range of fiscal matters including water revenue estimates, mid-year financial reports, and public comment. Due to time constraints, public comment was limited to one minute per speaker, and the scheduled CDBG appeals hearing was postponed to the following day.

Public Comments & Testimony

  • Russ Ballant questioned the basis for a reported $135 million increase in DWSD revenue between FY25 ($590M) and FY26 ($724.4M) from the revenue estimating conference, and asked for clarification on whether all revenue comes from customer accounts.
  • Owner Papa (Ms. Hughes) raised concerns about the citywide payroll performance audit (Item 6.1) previously available but now inaccessible, and questioned why DWSD was excluded from the audit during Plant Morant's tenure.
  • William N. Davis echoed previous callers' questions and asked whether the city would provide ratepayer rebates or fully fund DWSD retiree pensions if retirees were shortchanged.
  • A resident criticized the lack of transparency in agenda attachments and non-compliance with Charter Sections 7-201 and 9-405, and noted the disparity in legal fees between right-to-counsel ($760/case) and Zausmer law firm for solar takings.
  • Betty A. Varner requested council consider waiving land use hearing fees for community organizations and sought funding for the Sojourner Truth corridor and park expansion.
  • Carmen Cunningham pleaded for assistance in making peanut butter sandwiches for hungry individuals at transit centers, citing increased food costs.
  • A caller (phone ending 169) expressed support for public transportation and quoted Bob Marley in reference to underdogs.
  • Darren McCluskey criticized the city's approach to solar takings, noting a $760/case right-to-counsel vs. tens of thousands spent per property when the city is the aggressor, and alleged fraudulent data used for just compensation.

Discussion Items

Water Revenue Estimates (115 Presentation)

  • Valerie Goli (Acting Treasurer/Deputy CFO) and Lashonda Davis (DWSD Director of Finance) presented corrected estimates after acknowledging the revenue estimating conference data was based on stale information.
  • The previously reported 23% increase for FY26 was inaccurate; revised FY26 revenue estimate is $618 million (vs. $589M actual in FY25), an increase of about $29 million (4.9%).
  • DWSD will not issue bonds in FY26; a potential $60 million bond issuance (split $30M water/$30M sewer) is under consideration for late FY27, with bond proceeds received around May, not affecting debt service until FY28.
  • Councilmembers discussed the stagnant $50 million annual payment from GLWA (no cost-of-living adjustment), the 40-year asset lease that extends with bond issuances, and the inability of the city to renegotiate the MOU without regional partners.
  • Councilmember Waters noted that GLWA does not contribute to the city's general fund, and the $50 million payment will diminish over time.
  • Councilmember Johnson asked about the rate negotiation process and the burden on ratepayers.
  • Chair expressed concern that the GLWA arrangement is a "bad deal" for Detroit and that it impacts struggling residents.
  • Controls for future accuracy: DWSD will now be part of preliminary revenue conference reviews, monthly meetings with the budget team, and formal reviews before public distribution.

Six-Month Financial Report (Ending December 31, 2025)

  • Donnie Johnson (Acting Deputy CFO/Budget Director) and Valerie Goli presented the report.
  • Revenues: $35.6 million surplus driven by wagering taxes and higher property tax collections.
  • Expenditures: $8.3 million underspent.
  • Operating surplus: $43.9 million combined; annual projection now shows a $2.2 million surplus (previous deficit concern alleviated).
  • Income tax: Withholding up $8.8M year-over-year; corporate income tax down $4M.
  • Cash position: General ledger cash balance $1.6 billion (down from $2 billion same period last year due to ARPA spend-down and bond proceeds).
  • Property tax collections: On track; one-time timing difference for mortgage servicer payments noted.
  • Headcount: Net increase of 23 FTEs citywide; Fire Department dropped 16 FTEs (retirements); Transportation added 53 FTEs (student drivers).
  • Councilmember Johnson asked about solid waste fee projections tied to property tax collections; reassured alignment with contract expectations.
  • Mr. Corley noted income tax revenue is steady with moderate growth, and corporate collections have slightly improved; caution advised due to tariff uncertainties.

Other New Business

  • Item 6.1 (Payroll Performance Audit): Moved to be brought back in six weeks, with note that the audit is published on the Auditor General's website.
  • Item 6.2 (Centralized Fee Schedule): Motion to bring back in one week, as a report is expected in a day or two.
  • Item 7.1 (Office of City Clerk/Planning Commission report): Received and filed.
  • Item 7.2 (NEZ Certificate for 1255 Bagley): Chris Gulak (CPC staff) and petitioner Matthew Cassidy presented the application for a single-family rehab in the Corktown NEZ. The property has two parcel numbers; the other half (1257) was approved last month. Estimated rehab cost $103,000; unit is owner-occupied. Council approved and sent to formal session.
  • Item 7.3 (Delinquent Tax Interest/Fees): Vice Chair Johnson requested LPD evaluation; brought back in two weeks.

Key Outcomes

  • The DWSD revenue estimates were corrected; a revised five-year outlook will be released by the Treasury office.
  • The 6.1 payroll audit presentation was deferred to return in six weeks; council confirmed the audit is publicly available online.
  • Item 6.2 will be brought back in one week.
  • Item 7.2 was approved and sent to formal session (no objections).
  • Item 7.3 will be brought back in two weeks.
  • Member reports were suspended, and the meeting adjourned.

The CDBG appeals hearing was postponed to February 26, 2026, at the regular scheduled time; public comment for that hearing was taken after the BFA meeting recessed.

Meeting Transcript

To order with the Madam Clerk please call the roll. Councilmember Dizale Anton McCampbell. Present. Councilmember Letitia Johnson. Present. Councilmember Mary Waters. Present. Mr. Chair, you have a quorum present. Thank you so much, Madam Clerk. Um that'll move us on to the approval of minutes. Um members should have received the minutes. Is there a motion to approve? Motion. All right. Um any objections? Without any objections, the action shall be taken. Don't move us on to chair remarks. I would just keep it very brief. We do have a 2 p.m. Uh C B C D B G. I always get the acting around. The CDBG um hearing, so we will get through as much as we can with budget financial audit, but just want to let folks know that. And with that, we will move on to public comment. Because we are on time constraints. I am going to give folks um one minute on public comment. I understand that is very that is a low number, but as folks know in this committee, I try to give folks their full two minutes, but we are at time constraints. So we'll have one minute for public comment. Um that will the request for public comment will end at 127. Um, and um also before we move on to public comment, I'm going to uh uh open up the 115 presentation on uh water revenue and then we'll recess their presentation at the call of the chair. So with public comment, uh do we have someone in the audience? I believe we have one person in the audience, and how many if you are on Zoom, please use the raise hand function if you like to give public comment. Um we'll start with folks in the audience here. If you come to the front here, uh to the chair. Good afternoon. Um if you just want to state your name and then give your public comment. Uh Russ Ballant and I uh uh want to raise uh the question through the committee, uh, which I understand the officer's chief financial officer will answer today in the meeting about the um the revenue estimating conference data that I reported to city council eight days ago. Um the fiscal year 25 showed 590 million dollars round slightly rounded in revenue, but the fiscal year 26, our current year was estimating 724.4 uh about 135 million dollar increase. And I was asking what the basis was for that increase and whether that whole 725 uh 724.4 million is coming from uh customer accounts. And so I would like to know how much DWSD will actually be collecting in fiscal year 2026 based on the best estimates. And I also take note of uh uh on the page 13 of that report, it says in uh uh bullet that DWS to me include bonds and other funds not reported in revenue actuals and why they're using the years a different I know uh the time. Why are they using those I gotta cut you on reporting fiscal years in a different way? Thank you. That causes confusion. Thank you. Yeah, all right. Um Zoom, how many folks do we have on zone? Hi, Mr. Chair. We have seven hands raised right now.

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