Detroit Budget, Finance, Audit Committee Meeting - September 9, 2026
Detroit Budget, Finance, and Audit Standing Committee Meeting - September 9, 2026
The Budget, Finance, and Audit (BFNA) Standing Committee met on Wednesday, September 9, 2026, with Chair McCampbell presiding. The meeting included approval of previous minutes, public comments, the first of seven Fiscal Year 2027 Budget Implementation Oversight discussions (focused on culture and media), unfinished business on property tax reduction, financial reports, and two neighborhood enterprise zone applications.
Consent Calendar
- Approval of Minutes: The minutes from the July 22, 2026 meeting were approved without objection.
Public Comments & Testimony
- Abbas Ali (Anthony Ali): Advocated for funding an escrow-to-receivership program for tenant protections, suggesting the current landlord-favorable court system be balanced by a public acquisition model for affordable housing.
- William M. Davis (Commissioner): Raised concerns about a lease agreement allowing name changes of city facilities (e.g., wastewater treatment plant) without payment; criticized that DWSD rates did not protect retiree pensions and benefits, urging more help for city retirees.
- Caller reading a poem: Recited a poem about homelessness, highlighting obstacles like hostile architecture.
- Black Bag (Mr. Carly): Alleged election fraud in Detroit elections, referencing specific years and claiming evidence was provided to the president.
- Betty A. Barner (President, DeSota Elsewhere Black Association): Requested maintenance of vacant lots and support for a community park (benches, playground) along the Fink Accorder corridor.
- Caller on master plan and mowing: Expressed support for slowing the master plan update to be more inclusive; complained about mowers blowing garbage and disrespect from contractors.
- Caller on slum landlords: Criticized Building and Safety for issuing certificates of compliance to landlords with dangerous conditions and urged revocation of certificates; also complained about unsanitary conditions at Rosa Parks Transit Center.
- Ronald Foster: Called for audits to ensure fair vendor opportunities and argued that taxpayer resources should not be used to influence elections.
Discussion Items
- FY2027 Budget Implementation Oversight – Culture & Media: Chair McCampbell introduced this as a non-inquisitorial discussion on shared priorities from the closing resolution. Key items included:
- Bell Al Coyote Habitat ($100,000): The administration has set aside $100,000 from capital funds to match potential Wayne County funding, but the city is waiting on the county and the zoo for fundraising timelines. Funds will roll over if not used in FY27.
- Right Museum Capital Improvements ($1.5 million): Already appropriated as one-time capital for mechanical/electrical infrastructure (HVAC, fire mitigation). Reimbursement-based. Future funding beyond $1.5 million would need to be considered in future budget cycles.
- Media Services Funding ($225,000): This proposal was not included in the final FY27 adopted budget.
- Media Services Staffing for Council: Director Brown reported that current staff, supplemented by approved local vendors, have covered all council meetings (including BOPC, CPC, BZA) adequately. No additional budget ask anticipated for FY28, though the administration awaits a report from LPD on council’s desired coverage scope.
- Resource Guide for Community Organizations: The Department of Neighborhoods and Media Services are developing a guide with updated contacts, deadlines, and language accessibility, expected by end of September 2026.
- Unfinished Business – Property Tax Rate Reduction (Items 6.2, 6.4, 7.7): LPD presented a fiscal analysis showing that a four-mill reduction over four years (beginning FY28) would result in approximately $9.3M reduction in FY28, growing to $42M by FY31, cumulative $100M – a 20% reduction in property tax revenue. Without replacement revenue, essential general fund services (police, fire, courts) would be significantly impacted. The committee amended the substitute resolution to add language committing to seek additional revenue streams before reducing property taxes, then passed 6.2 to formal session with recommendation to approve as amended. Items 6.4 and 7.7 were received and filed.
- Financial Reports for May and June 2026 (Items 7.1, 7.3): The administration presented preliminary unaudited results for FY26 (ending June 30). Key points:
- Estimated ending unassigned fund balance of $69.9 million, including $42M corporate income tax reserve (not needed).
- Revenue is expected to be $17M above budget, with an additional $18M pickup expected at the September Revenue Estimating Conference.
- Expenditure projections are conservative; actual surplus likely higher.
- Cash position remains strong ($1.45B total general ledger cash at June 30).
- Property tax collection rate for FY28 (as of June) was 84.1% for general operating levy.
- The city received its ninth annual waiver of active oversight from the Financial Review Commission; one more is needed for full release (target June 2028).
- Neighborhood Enterprise Zone Certificates:
- 7.5 – Seven new single-family houses on Belvedere and Holcomb (East Village NEZ): Petitioner Great Water Homes has built 48 houses and is working on a model to sell for $250,000. Staff recommended approval; motion passed.
- 7.6 – Rehabilitation of duplex at 1489 Clark Street (Hubbard Farms NEZ): Developer Dylan Towler plans to invest $50,000, seeking to add a third rental unit pending building department approval. Staff recommended approval; motion passed.
- Other Unfinished Business: Various items were brought back in two weeks (6.1, 6.5, 6.7), three weeks (6.10, 7.8, 7.9), or on specific dates (6.8 – September 30). Item 6.9 was removed as filed in another committee.
Key Outcomes
- Approved: Resolution 6.2 (property tax reduction study) as amended – sent to formal session with recommendation to approve.
- Approved: NEZ certificates for seven new houses (7.5) and duplex rehabilitation (7.6) – sent to formal session with recommendation to approve.
- Received and Filed: Items 6.3, 6.4, 7.7, and financial reports 7.1 & 7.3.
- Brought Back: Items 6.1, 6.5, 6.7, 6.8, 6.10, 7.2, 7.4, 7.8, 7.9 on various future dates.
- Motion passed: Request for human resources to provide data on city resident hires over the past year (by Member Waters).
- Next Meeting: The next BFNA meeting is scheduled for Wednesday, September 23, 2026 (no meeting September 16).
Meeting Transcript
Good afternoon, everyone. I'd like to call the budget finance and audit standing committee meeting of Wednesday, September 9th, 2026 to order. Uh Madam Clerk, will you please call the row? Councilmember Denzel Anton McCampbell. Present. Councilmember Letitia Johnson. Councilmember Mary Waters. President. Mr. Chair, you have a quorum, President. Thank you so much, Madam Clerk. And with that, that'll move us on to the approval of the minutes. Um to approve. There's been a motion to approve the minutes for July 22nd, 2026. Seeing no objections, that action shall be taken. Move us on now to chair remarks. I would just say it's good to be back in session after a quote unquote recess. But it's just a recess for meeting, uh reassess from the work. Um so good to be back to you all. Uh here at BFNA. Um, just to note that um we will be having the discussion later on the agenda. Um, really bringing back up now that we are in the midst of the budget uh fiscal year 2027. Um wanna just have a conversation around the uh agreements that we made around the closing resolution between the city council and administration just to check on those things, see what the pri progress in them and any other um needed items or you know things that came up or circumstances that we may not have been aware of during the budget season. So we will touch on that and discuss that more later on in agenda. Um so with that, not wanting to keep folks long in this. Um we will be time moving forward because we do have a long agenda. Um if necessary, we can bring back items to discuss further or submit our questions via memo after the committee. Um and with that, we will move on to public comment. Well, uh open up request for public comment and close at 110 p.m. Uh, please limit your remarks to two minutes. We'll start with those participating here in person and then move to those joining us remotely. If you are joining us via Zoom, please do use the raise hand function and you will be called in that order. And with that, do we have folks joining us in person? If you uh if you're you can join us right up here. And then you just press the button on the mic, and when you begin, you have two minutes and just state your name and then you can get started. Okay. Uh good afternoon. My name is Abbas Ali, also uh Anthony Ali is what I go by. Uh yeah, I just wanted to address um in this committee because I actually missed public comment in the previous committee, where some of these concerns will be more appropriate, um, specifically around the 36th district court and the current case with the Detroit Tenants Union. Um, but well, I had the attention of you guys, uh council members. Um just wanted to make some suggestions in terms of uh budgetary suggestions in terms of dealing with that. Um specifically, uh Miss Mary Waters um uh in pushing forward kind of some legislation that you guys uh co-sponsored um last within the past uh two years, I believe. Um setting up an escrow system and essentially to cut straight to it. Uh currently the way that the system handles these this issue of the the tenants, um, it's very much in favor of the landlords. The landlords essentially have the power, the capacity and the the power to use the uh the courts and the police to enforce their perspective, and that's apparent. The ASA asymmetry asymmetrical nature of that system is apparent in how we handle default judgments. Um but the infrastructure, the public, the legal infrastructure is there to establish a different system, and that would look something like escrow leading to receivership and uh ultimately potentially public acquisition. And if we were to fund uh since this is the budget committee, I would recommend apportioning funds to specifically grow that rather than um focusing on you know language which has come actually from a uh Dan Gilbert-owned think tank DFC around landlords. The mom and pop uh perspective of landlords in Detroit is not an actual reality. Um that could be addressed at a later time, but the actual reality is uh large swathes of the city being owned by individuals and and entities, and so advancing that escrow program to ultimately lead to uh public acquisition potentially and provide safe uh affordable housing for the people of Detroit.
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