Detroit City Council Budget Hearing for Department of Appeals and Hearings - March 18, 2026
Detroit City Council Budget Hearing for Department of Appeals and Hearings - March 18, 2026
The Detroit City Council held a budget hearing on March 18, 2026, for the Department of Appeals and Hearings (DAH). Director Julianne Pastoral presented the department's fiscal year 2027 budget, operations, and strategic priorities. Council members questioned the director on performance metrics, language access, collection rates, and community engagement. Public comments were received on blight enforcement and other city matters.
Discussion Items
- DAH Budget and Operations Overview: Director Pastoral introduced DAH's three core functions: blight court, administrative appeals, and blight clearance certifications. She highlighted a decrease of 44,000 blight tickets in fiscal year 2025 compared to the prior year. Total judgments issued were $18.4 million, with $5.6 million collected (30% collection rate, 5% over adopted budget). Administrative appeals doubled year-over-year, with business license matters increasing sevenfold and emergency demolition hearings more than tripling. Blight clearance applications processed since November 2024 totaled over 4,400, with 64% granted, 18% denied, and a processing time of one day.
- Proposed Fiscal Year 2027 Budget: DAH requested $2.4 million in expenditures and projected $5.9 million in revenue. The budget includes 19 FTEs (one vacancy), a $104,000 increase over the prior year, incorporating two positions previously funded by ARPA. The training budget was removed, but professional services and equipment funding remained unchanged.
- Text Messaging Initiative: DAH implemented a text messaging system for unpaid judgments through its collections law firm, using a verified short code, branding, and opt-out options. Council Member McCampbell suggested adding "on behalf of the City of Detroit" language, which Director Pastoral agreed to pursue.
- Language Access: Council Member Santiago Romero raised concerns about non-English speakers being turned away. Director Pastoral and Manager Joylin Hunt described efforts to provide interpreters via CREO, reschedule hearings, and accommodate multilingual needs. Website redesign will include translated materials.
- Collection Rate and Unpaid Judgments: Council Member Benson noted the 30% collection rate and asked about the remaining 70%. Director Pastoral explained that those are enforceable judgments actively pursued through liens, garnishments, and collections activities. She emphasized that attending hearings is key to reducing defaults.
- Amnesty Days and Fee Waivers: Council Member Young asked if DAH would host an amnesty day for reduced fines. Director Pastoral said it is on her wish list but the department has focused on process improvements first.
- Use of Artificial Intelligence: Council Member Young suggested AI could enhance case processing. Director Pastoral stated DAH does not currently use AI and has no AI plans in its upcoming case management software contract, as the Law Department explicitly excluded it.
- Virtual vs. In-Person Hearings: DAH conducts 100% of hearings via Zoom, a practice continued since COVID-19. Council President noted the Zoom dial-in uses a 312 area code, causing confusion, and Director Pastoral agreed to explore options.
- Hearing Officer Judgments and Appeals: Council President asked about audits of hearing officer decisions. Director Pastoral explained that judgments are based on evidence, respondents can appeal to Third Circuit Court, and default judgments can be set aside within 21 days with a bond refund if found not responsible.
- Motion for Public Education on Blight Tickets: Council Member Santiago Romero moved to executive session to discuss resources for public education on the most common blight tickets. The motion passed without objection.
Public Comments & Testimony
- Maurice Weeks commented on BSEED and CREO budget concerns, noting the same number of FTEs for construction inspections and language access as the prior year.
- Jadante Smith criticized council members for comments about land bank and zoning issues.
- Hira Ahmed commented on the Detroit Institute of Arts and historical narratives about African Americans.
- Foster praised DIA but criticized DAH for disconnect with community on blight enforcement.
- Owner Papa questioned revenue from blight tickets and equitable enforcement, citing missed tickets for certain property owners.
- Betty A. Varner, president of Soda Ellis World Block Association, requested funding to waive land use hearing fees for community groups.
Key Outcomes
- DAH will provide written answers to outstanding budget questions from the Legislative Policy Division.
- The council approved a motion (unanimous) to explore and allocate resources for public education on common blight tickets.
- DAH will submit two contracts for council consideration in coming weeks: a new case management system and an extension of its collections contract.
- The budget hearing concluded with a recess until 2:00 p.m.
Meeting Transcript
Happy budget hearing day. One of my favorite days of the year. Always great to see you. The floor is yours. I appreciate that. Thank you, Council President. And I'll actually start talking respecting everyone's time. So good morning. Thank you to this honorable body for the opportunity to present to you today. My name is Julianne Pastoral. I'm the director of the Department of Appeals and Hearings. I'm honored to be here with my colleague Letitia Perry. I'm also joined by attorney Joylin Hunt and Mika Smith behind me. They're my managers at DAH who make up my executive management team. Before diving into my presentation, I'd like to thank the OCFO, in particular Malcolm Walker, Rachel Wood, Matthew Spaith, and Interim Budget Director Donnie Johnson for their invaluable support and assistance during this budget process. I also want to recognize all of my colleagues at DAH. This presentation reflects their hard work and dedication to the city. Lastly, I acknowledge receipt of the budget questions from LPD earlier this week. I will be providing written answers to those to this honorable body as soon as possible. DAH's strategic priorities include further expanding equitable access to justice and continuing to modernize our operations through process improvements. This will be accompanied by a forthcoming request to this honorable body for a new case management system software. And let's start with who we are. For those of you not familiar with DAH that can hear my voice, we are the city's independent administrative hearings bureau established under state law and the Detroit City Code. Our goal and mission is to provide fair, timely, and impartial hearings while assuring that city ordinances are enforced through an accessible and transparent process. DAH performs three core functions. First, blight court, second, administrative appeals hearings, and third, blight clearance certifications. DAH provides an opportunity to challenge blight tickets. We also have the authority to determine compliance and uphold fines and fees. The five-step process through our blight court is first, a ticket is issued by B seed or DPD, which includes a hearing date. Second, at the hearing, both the city and the respondent have an opportunity to pre opportunity to present evidence and testimony regarding their position. Third, the hearing officer will make a determination based on the evidence presented and issue a judgment such as not responsible or responsible. Individuals can appeal responsible judgments to the Third Circuit Court. And lastly, DH takes affirmative steps to collect unpaid judgment. Post and judge post-judgment enforcement activities include collections activity and the filing of liens or garnishments. Moving on to numbers. Tickets in fiscal year 25 decreased by 44,000 compared to the previous fiscal year. Either through an admission of responsibility on the part of the property owner or through dismissal through by the ticket issuing agency, such as when compliance is achieved prior to the hearing. As to fiscal year 25 revenue, the total amount of judgments issued was 18.4 million dollars. DAH collected 5.6 million, which was 5% over the adopted budget, resulting in an overall collection rate of 30%. And before we leave this slide, I did want to highlight that this uh artwork is one of our murals completed by local artist Kayleen Abernathy or Free Love K as part of the Detroit Artist Apprenticeship Program City Walls Initiative. I got that correct. Next is our administrative appeals bureau. This bureau reviews certain decisions made by city departments and agencies. If a decision is eligible to appeal to DAH, the decision will include how to request a hearing and the deadline for filing that appeal. Through this process, DAH provides an independent forum where individuals and businesses can present evidence and have those decisions reviewed by an independent administrative hearings officer. Examples of decisions that come before the administrative appeals bureau are business license determinations, emergency demolition designations, and business and building closures. This photo, the photo on this slide, I just want to briefly highlight is local artist Armadeash Roy and his mentor Grabster working on another DAH mural. We're very proud to have in our public space. Now we'll move on to administrative appeal statistics. The total number of matters doubled over the prior fiscal year.
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