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).