OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Detroit Budget, Finance & Audit Committee Meeting – May 20, 2026

City Council — Wednesday, May 20, 2026
BodyDetroit, Michigan
SessionCity Council
DateWednesday, May 20, 2026
StatusFILED
Video Record
0:00 / 2:38:20

Transcript — Verbatim
0:00

Joining us for the budget finance and audit standing committee on today, Wednesday, May 20th, 2026.

0:07

Mr.

0:08

Clerk, will you please call the roll?

0:10

Good afternoon, Councilmember Denzel McCampbell.

0:13

Member McCampbell did indicate that he would not be present today.

0:16

Clerk will still know.

0:17

Councilmember Letitia Johnson.

0:19

Present.

0:20

Councilmember Mary Waters.

0:22

Present.

0:22

And Vice Chair, there's a quorum.

0:24

Thank you.

0:24

Having a quorum present, we are now in session.

0:28

And good afternoon, everyone.

0:30

Member Waters, is there a motion on the minutes?

0:34

Hearing no objections, that action shall be taken.

0:38

We are going to move into public comment.

0:42

If there is anyone joining us who'd like to make a public comment, whether in person or virtually, please raise your hand.

0:50

Please raise your hand.

0:52

Noting that we do not have any hands raised in the committee of the whole, we will cut off the collection of general public comment at 10.

1:03

That is in two minutes.

1:06

Good morning, Miss Duncan.

1:08

How many hands do we have raised virtually?

1:13

Good morning, Madam Chair.

1:14

There are currently nine hands raised.

1:17

All right, let's give everyone two minutes.

1:21

And we will get started with the first caller.

1:24

The first caller, Madam Chair is Mr.

1:26

Foster.

1:26

Mr.

1:27

Foster, good afternoon.

1:29

You have two minutes for general public comments.

1:32

Oh good afternoon, duty, chair.

1:36

All right.

1:37

I appreciate a lot of direction that we're going, but we still have a technical parkers and y'all are here.

1:43

For example, a 6.23.

1:46

If we're talking about making new changes and make it sure our neighborhood visits straight and all these other things that how we meant doing things in lieu of taxes.

1:56

The whole purpose of taxes are there to ensure that the services are rendered until the people, right?

2:03

That's all even though this is a new ordinance.

2:07

I'll just ask you all to evaluate the effectiveness of it and then have a force going to down the line, maybe the consequences of these things.

2:17

We can't continue to do these things, waiting on income to come in three, four years later with a new administration, possibly, right?

2:28

You know, and so we cannot afford to gamble our resources.

2:32

And that's what it appears to be.

2:34

Not trying to get anybody in trouble or pull everybody's coach here.

2:38

But like for example, if we did a 75 million dollar deal in November, and this deal is contingent upon state reps and senators and everything else, and they are on the ballot to get elected this year.

2:52

How are we moving if we don't even know what position that the state is in or anybody else is in?

2:58

Where are we the first people committing our funds and money to these type of things?

3:03

Thank you.

3:04

And so those are just names like we have to change our mind to think and stop trying to play on our citizens' uh illiteracy or a lack of understanding into government, right?

3:16

Be admiral people, be moral people.

3:19

You have to think and make good decisions for those that don't have the ability to think for themselves.

3:24

You don't exploit people, right?

3:26

And I hope that this city started to change its direction, start to change its culture, start to stand up, have some integrity, and stand up for those that can't stand up for themselves.

3:38

Thank you.

3:39

Just want to note that the collection of public comment has concluded.

3:44

Who do we have next?

3:46

The next caller is Betty A.

3:47

Varner.

3:48

Betty A.

3:48

Vernon, you have two minutes for general public comment.

Discussion Breakdown — Share of Meeting
Housing███████████████████████████27%
Fiscal Sustainability█████████████████████21%
Zoning and Land Use███████████11%
Affordable Housing██████████10%
Public Engagement█████████9%
Procedural████████8%
Contract Management███████7%
Economic Development███3%
Community Engagement█1%
Summary of Proceedings

Detroit City Council Budget, Finance and Audit Standing Committee Meeting – May 20, 2026

The Budget, Finance and Audit Standing Committee met on Wednesday, May 20, 2026, with Vice Chair Letitia Johnson presiding and Councilmember Mary Waters present. Councilmember Denzel McCampbell was absent. The committee addressed a lengthy agenda including unfinished business, new business, and a major discussion on a Payment in Lieu of Taxes (PILOT) proposal for the City Club Apartment project.

Consent Calendar

  • No formal consent calendar was identified. Several routine actions were taken without objection, including approval of minutes, combining line items, and motions to receive and file reports.

Public Comments & Testimony

  • Mr. Foster criticized the city's use of PILOTs and tax reductions, arguing the city is gambling on future income and exploiting residents' lack of understanding. He urged the city to change direction and have integrity.
  • Betty A. Varner (President, Soda Elsewhere Block Association) advocated for funding for the Finkel corridor, stating residents have ideas but no money. She noted that the Finkel Business Association is purchasing buildings and lots, but the city has not provided equal support.
  • Owner Papa opposed PILOTs and tax reductions, stating the city is squeezing residents while reducing taxes for others. She called for a feasibility study on PILOTs and cited the audit (item 9.8) as a basis for action. She also expressed frustration about salary increases without a feasibility study.
  • Caller “What happened to Mayor Duggan” raised concerns about missing videos of Mayor Duggan’s charter-mandated meetings, questioned whether data centers are the real purpose of solar farms, and alleged that the city mishandled the historic fairgrounds sale. He urged council to look into Matt Walters’ past.
  • Nini’s friend alleged voter fraud and made accusations about council members being “cheated in,” referencing a 105-year-old voter. He also mentioned the National Youth Generational Group Association.
  • Jadante Smith complained about being denied a meeting with Councilmember Scott Benson’s staff and criticized conditions at Kronos Concrete. He threatened that some council members would go to prison over bribery and illegal property sales.
  • Legendary Detroiter (Mr. Crowley) simply agreed with previous callers.
  • William M. Davis discussed the end of Detroit’s bankruptcy (final decree issued May 19, 2026) and urged council to do more to help retirees, particularly those in the General Retirement Fund who faced a 22.25% cut.
  • Last caller (ending 534) only thanked the committee.

Discussion Items

  • Unfinished Business (Items 5.1–5.12): Several items were combined and brought back in two weeks (5.1–5.4, 5.6, 5.7, 5.9). Items 5.5 (participatory budgeting) and 5.8 (building fair pilot) were received and filed or brought back as noted. Item 5.10 (closing the gap) and 5.11 (amending city code for claims) were brought back in two weeks. Item 5.12 (payroll audit) was brought back in three weeks.
  • New Business (Items 6.1–6.15): Budget memo responses were combined and received and filed.
  • Item 6.16 – Insurance Brokerage Services Contract: The city requested a one-year extension for Alliant Insurance Services (increase of $3,708,673) to bind coverage for property, cyber, airport liability, etc. The city is self-insured for auto and workers’ comp. The contract was originally from a 2021 RFP. Council approved the extension, with a commitment to issue a new RFP.
  • Item 6.17 – Large Events Report (Q3 FY2025-26): The report details fees for police and fire services at large events. Councilmember Waters questioned whether fees are flat and how residents are notified about street closures. A memo was requested to get a breakdown of cost determination. The report was received and filed.
  • Item 6.18 – Financial Report (Nine Months Ending March 31, 2026): The city reported an operating surplus of $57.9 million for the nine months, projecting a $44.2 million surplus for the fiscal year. Income tax collections are below expectations but better than forecast; wagering taxes overperform. Council discussed staffing (ARPA positions, seasonal workers), collective bargaining impacts (especially DFFA), and concerns about gambling addiction. The report was received and filed.
  • Item 6.19 – NEZ Certificate for 2455 West Forest Street: Petitioner Karen Kelly requested a certificate for a new single-family home in Core City. The project is a 2,200 sq. ft. home with three bedrooms, built by the owner. Staff recommended approval. Council approved the motion to send to formal.
  • Item 6.20 – NEZ Certificates for Three Houses on 4th Street: Petitioner Lucas Bondi (Bondi Construction) proposed three new single-family homes in Midtown. Each home is 1,700 sq. ft. (two stories, three bedrooms), selling for ~$599,000. Council discussed accessibility (ramps) and market conditions. The committee approved the motion to send to formal.
  • Items 6.21, 6.22, 6.24 – Operating Budgets for DDA, 8-Mile Woodward Corridor, and LDFA: These were approved as routine, with a correction on the fiscal year for 6.21.
  • Item 6.25 – Data Center Tax Revenue Impact Analysis: Referred to Legislative Policy Division, brought back in three weeks.
  • Item 6.26 – Property Tax Rate Reduction Resolution: Referred to Legislative Policy Division, brought back in two weeks.
  • Item 6.23 – City Club Apartment PILOT (1501 Washington Boulevard): This was the major discussion item. The property (288 units, built in 2021) is in receivership. The developer (Downtown Detroit Owner LLC, represented by Sequel and Walters Group) seeks a 15-year PILOT at 7% of annual rental revenue to cover 224 units (workforce housing at 120% AMI), while the existing NEZ and PA210 would be reduced. HRD supports the plan, citing tenant protections (3% annual rent cap for legacy residents) and avoiding foreclosure. Council expressed concerns about the cost-benefit, the precedent set, and the city’s revenue loss. A motion was made to request a cost-benefit analysis from HRD and to bring the item back in two weeks. Both motions passed without objection.

Key Outcomes

  • Minutes approved without objection.
  • Items 5.1–5.4, 5.6, 5.7, 5.9 brought back in two weeks.
  • Item 5.5 received and filed.
  • Item 5.8 brought back in two weeks.
  • Item 5.10 brought back in two weeks.
  • Item 5.11 brought back in two weeks.
  • Item 5.12 brought back in three weeks.
  • Items 6.1–6.15 received and filed.
  • Item 6.16 approved (sent to formal with recommendation to approve).
  • Item 6.17 received and filed; memo to be sent to administration for cost breakdown.
  • Item 6.18 received and filed.
  • Item 6.19 approved (sent to formal).
  • Item 6.20 approved (sent to formal).
  • Items 6.21 (as amended), 6.22, 6.24 approved (sent to formal).
  • Item 6.25 referred to Legislative Policy Division, bring back in three weeks.
  • Item 6.26 referred to Legislative Policy Division, bring back in two weeks.
  • Item 6.23 – Motion for cost-benefit analysis from HRD passed; motion to bring back in two weeks passed.
  • Member reports were suspended without objection.
  • Meeting adjourned.

Meeting Transcript

Joining us for the budget finance and audit standing committee on today, Wednesday, May 20th, 2026. Mr. Clerk, will you please call the roll? Good afternoon, Councilmember Denzel McCampbell. Member McCampbell did indicate that he would not be present today. Clerk will still know. Councilmember Letitia Johnson. Present. Councilmember Mary Waters. Present. And Vice Chair, there's a quorum. Thank you. Having a quorum present, we are now in session. And good afternoon, everyone. Member Waters, is there a motion on the minutes? Hearing no objections, that action shall be taken. We are going to move into public comment. If there is anyone joining us who'd like to make a public comment, whether in person or virtually, please raise your hand. Please raise your hand. Noting that we do not have any hands raised in the committee of the whole, we will cut off the collection of general public comment at 10. That is in two minutes. Good morning, Miss Duncan. How many hands do we have raised virtually? Good morning, Madam Chair. There are currently nine hands raised. All right, let's give everyone two minutes. And we will get started with the first caller. The first caller, Madam Chair is Mr. Foster. Mr. Foster, good afternoon. You have two minutes for general public comments. Oh good afternoon, duty, chair. All right. I appreciate a lot of direction that we're going, but we still have a technical parkers and y'all are here. For example, a 6.23. If we're talking about making new changes and make it sure our neighborhood visits straight and all these other things that how we meant doing things in lieu of taxes. The whole purpose of taxes are there to ensure that the services are rendered until the people, right? That's all even though this is a new ordinance. I'll just ask you all to evaluate the effectiveness of it and then have a force going to down the line, maybe the consequences of these things. We can't continue to do these things, waiting on income to come in three, four years later with a new administration, possibly, right? You know, and so we cannot afford to gamble our resources. And that's what it appears to be. Not trying to get anybody in trouble or pull everybody's coach here. But like for example, if we did a 75 million dollar deal in November, and this deal is contingent upon state reps and senators and everything else, and they are on the ballot to get elected this year. How are we moving if we don't even know what position that the state is in or anybody else is in? Where are we the first people committing our funds and money to these type of things? Thank you. And so those are just names like we have to change our mind to think and stop trying to play on our citizens' uh illiteracy or a lack of understanding into government, right? Be admiral people, be moral people.

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