Budget Financial Order Standing Committee Meeting – March 11, 2026

The Budget Financial Order Standing Committee met on Wednesday, March 11, 2026, under the chairmanship of Councilmember Denzel Anton Campbell. The committee addressed unfinished business, new business, and public comments, focusing on delinquent tax fees, an audit of the ARPA Neighborhood Beautification Initiative, and two Neighborhood Enterprise Zone (NEZ) certificate applications. Key decisions included combining agenda items, requesting a state-level resolution on tax fees, approving NEZ certificates, and scheduling follow-up on the audit.

Public Comments & Testimony

• Ms. Hughes: Expressed concern about item 6.4 regarding amendments to interest and fees on delinquent taxes, questioning why the city is involved in DPS debt and urging the council to seek revenue from other sources rather than raising taxes on citizens.
• Betty A. Varner (President, Soda Ellsborough Black Association): Requested that the council allocate budget funds for walk-in showers for seniors and disabled residents, stating that the administration previously refused to spend money on them and that residents have been on a waiting list for three years.
• Caller “iPhone”: Described personal efforts to teach swimming in the neighborhood and reported recent damage to downspouts and grates on his building, asking for assistance.
• William M. Davis: Argued that more assistance is needed for residents behind on taxes, calling 18% interest and fees “illegal,” and urged that aid be focused on owner-occupied dwellings rather than non-resident property owners.
• Caller “Samsung SMG991U”: Responded to a previous comment by Councilmember Callaway (not present), defending a woman who left a grocery cart in a store while using the bathroom to avoid missing her bus, stating that store employees are paid to retrieve carts.

Discussion Items

• Unfinished Business 5.1 & 6.4 – Amendments to Interest and Fees on Delinquent Taxes: Vice Chair Johnson moved to combine items 5.1 and 6.4, which was approved without objection. She noted that the request originated from a resident who spoke about exorbitant county fees dictated by state law. The committee then moved to send a memo to the Legislative Policy Division (LPD) requesting a resolution asking the state to reconsider and reduce the fees, citing the burden on residents. The motion carried unanimously.
• 5.2 – Audit of the American Rescue Plan Act (ARPA) Neighborhood Beautification Initiative: Auditor General Laura Goodspeed, Deputy Auditor General Mark Lockridge, and Chief Auditor Kevin Asadi presented the audit. The initiative had a total appropriation of $28.5 million, with cumulative spending of $25.8 million as of November 30, 2025. The audit covered 10 projects (e.g., ACE Arts Alley, Blight to Beauty Corridors, Blight to Beauty Trees, SEED program, etc.). Key observations included:
  • SEED program noncompliance: The Detroit Economic Growth Association (DEGA) failed to meet multiple performance milestones outlined in the subrecipient agreement (e.g., underwriting delayed 5 months, finalization of beneficiaries delayed over 13.5 months).
  • Contract amendment discrepancy: An original contract for the Blight to Beauty Trees project with Limbwalker Tree and Snow was reduced from $1.512 million to $1 million, but the city’s Oracle ERP system still reflected the original amount, risking overpayment.
  • Late payments: 11 of 16 sampled invoices were paid beyond the payment threshold terms.
  • Outdated cost centers: Three cost centers used for the ACE Arts Alley project were determined to be outdated and still in use with budget encumbrances.
  • No formal agency response was received from the administration by the January 29, 2026 deadline. Councilmember Waters asked about consequences for noncompliance and redistribution of unspent funds, but the committee noted those questions were for the Office of the Chief Financial Officer (OCFO). A motion was made to bring the OCFO and other relevant entities before the committee the following week to answer questions. The motion passed unanimously.
• 6.1 – NEZ Certificate Application for 3302 Harrison (North Corktown): Petitioner Lucas Bondi (Lucas Bondi Construction) requested a NEZ certificate for a rehabbed rental property. The house was purchased from the land bank for $44,000 and renovated. Bondi plans to replace the basement slab. The committee discussed accessibility features and rent estimates ($2,400). Bondi agreed to consider installing a ramp. The application was approved unanimously.
• 6.2 – NEZ Certificate Application for 740 Pingry (Central Detroit Christian): Petitioner Miles Tryon Pettit and his wife plan to renovate the home as their primary residence with $60,000 in improvements (roof, garage, plumbing, etc.). The property was purchased in January 2026 for $170,000. The committee approved the application unanimously.
• 6.3 – Request for Report on DPS Debt: The item was received and filed without objection.

Key Outcomes

• Combined items 5.1 and 6.4 (unanimous).
• Motion passed to send a memo to LPD seeking a resolution for state-level reduction of delinquent tax fees (unanimous).
• Motion passed to receive and file combined items 5.1 and 6.4 (unanimous).
• Motion passed to discuss the ARPA Neighborhood Beautification Initiative audit (unanimous, 15 minutes allocated).
• Motion passed to bring the OCFO and other entities before the committee in one week to answer questions on the audit (unanimous).
• Motion passed to send 6.1 to formal with recommendation to approve (unanimous).
• Motion passed to send 6.2 to formal with recommendation to approve (unanimous).
• Motion passed to receive and file 6.3 (unanimous).
• Motion passed to adjourn (unanimous).