Detroit Budget Finance and Audit Standard Committee Meeting - June 24, 2026

The Budget Finance and Audit Standard Committee met on June 24, 2026, to consider budget transfers, year-end close procedures, and hear public comments. Key items included a $2.1 million ARPA transfer for the Lee Plaza affordable housing project, a $900,000 ARPA reallocation for council projects, and a resolution authorizing deficit-free year-end close transfers. Public testimony covered topics ranging from solar array concerns to transit millage funding.

Consent Calendar

• Approval of June 17, 2026, meeting minutes was approved unanimously.

Public Comments & Testimony

• William M. Davis: Expressed full support for the reappointment of Josh Mack, citing his community activism and previous school board service. Also noted the passing of a city retiree and urged the council to provide better support for retirees.
• Owner Papa (Ms. Hughes): Criticized Councilmember Johnson for inaccurate statements about property values and raised concerns about health ramifications of solar projects. Opposed $6 million contracts going to other communities and argued ARPA funds should benefit Detroit residents more directly. Also suggested the city faces potential lawsuits.
• Ruben Crowley Jr.: Alleged absentee ballot fraud in Detroit elections from 2020-2024, citing specific cases. Threatened to take action against what he called "ballot fraud."
• Miss Ward: Raised concerns about a still-burning solar warehouse fire in Ferndale affecting District 5, criticized the city's solar plan using eminent domain, and alleged violations of the Detroit City Charter. Also provided information about the MI Choice Waiver program for seniors and disabled.
• Darren McCleskey: Criticized the solar takings and DTE contract assumption, alleging the city's law department manipulated the process. Questioned the cost-effectiveness of energy upgrades (40-100 year payback) and the $135 million total project cost ($818,000 per acre). Also noted $10 million missing from a demolition project.
• Renard Meshenski (Detroit People's Platform): Expressed concern that the proposed DDOT millage would be used to backfill general fund contributions rather than provide additional resources. Demanded that the city maintain its general fund contribution and that DDOT report on funding use.
• Phone number ending in 669: Supported the millage but insisted it be in addition to existing city funding. Thanked councilmembers for donations and bus tickets.
• Jim Brunell: Did not speak; public comment closed.
• Councilmember Letitia Johnson noted that District 4 residents near the solar arrays strongly support the project and invited anyone with documented health risks from solar panels to share information.

Discussion Items

• 6.1 – ARPA Budget Transfer for Lee Plaza (2.1 million): Terry Daniels (Office of Development and Grants), Julie Schneider (Director of Housing and Revitalization), and Rebecca Labove (Housing and Revitalization) presented. The funds would be transferred from projects with surplus to complete 65 additional affordable units on floors 11-15, bringing total units to 182. The total project cost for phase 2 is $22 million, with $3 million from the city (including the $2.1 million ARPA transfer and $900,000 from another multifamily appropriation). The remaining $19 million comes from low-income housing tax credits, historic tax credits, a mortgage, and MISHTA gap funding. The units were originally planned as market rate but became unaffordable due to 41% construction cost increases. The loan is structured as a 45-year, interest-only balloon loan with affordability restrictions. 500 temporary construction jobs for phase 1 and 175 for phase 2, plus 5 permanent jobs. Councilmember Johnson questioned the change from market rate and the city's lack of ownership stake; staff explained that tax credit structures prevent city ownership. Councilmember McCampbell expressed concern about the city "saving deals" that were promised differently. The motion to send to formal with recommendation to approve was objected by Vice Chair Johnson; a subsequent motion to send to formal without recommendation passed.
• 6.2 – ARPA Budget Transfer for Council Projects (900,000): Terry Daniels presented a reallocation of $900,000 from surplus funds (technology adaptation, landlord repair program, personnel savings) into appropriation 20 for council-directed projects (basement backup, Renew Detroit, down payment assistance, park improvements). Councilmember Corley noted that if approved, council would have a total of $3.6 million to allocate, or $400,000 per council member. The resolution was amended to correct appropriation numbers. The motion to send to formal with recommendation to approve passed unanimously.
• 6.3 – Fiscal Year 2025-2026 Year-End Close Transfers and Budget Amendment: Deputy Budget Director Matt Spath explained the resolution authorizing limited transfers of unencumbered appropriation balances within departments (resolve item 1) and across departments up to $1 million (resolve item 2) to ensure a deficit-free close. The language is consistent with prior years. Councilmember Corley noted that the city previously received audit findings for exceeding appropriations, but the resolution has helped eliminate that. However, he requested the final actions report for FY2025, which has not yet been submitted. Spath committed to providing it within 30 days and to meeting with LPD before the FY2026 report. The motion to approve with recommendation to approve passed unanimously.

Key Outcomes

• Line items 5.1 through 5.3 (unfinished business) were sent to the full council without recommendation.
• Line item 5.4 (budget memo from the chair) was brought back in one week.
• Line item 5.5 (resolution on property tax rate reductions) was received and filed; an amended version is expected next week.
• 6.1 (Lee Plaza ARPA transfer) was sent to formal without recommendation (passed with objection from Vice Chair Johnson).
• 6.2 (ARPA transfer for council projects) was sent to formal with recommendation to approve (passed unanimously).
• 6.3 (year-end close resolution) was sent to formal with recommendation to approve (passed unanimously).
• The Office of Budget committed to provide the FY2025 final actions report within 30 days and to meet with LPD before the FY2026 report is submitted.