Detroit City Council Budget Finance and Audit Committee Meeting – September 30, 2026

The Budget, Finance, and Audit (BFA) Standing Committee of the Detroit City Council met on Wednesday, September 30, 2026, at 4:00 PM UTC. The meeting included public comment, a detailed review of the Detroit Water and Sewerage Department (DWSD) and Great Lakes Water Authority (GLWA) financials, budget implementation discussions on public safety, consideration of several contracts and reports, and action on multiple agenda items.

Consent Calendar

• Approval of Minutes: The minutes from the September 23, 2026, meeting were approved unanimously.
• Receipt and Filing of Reports: The following items were received and filed without objection: 7.2 (Risk Management Council Annual Report), 7.6 (LPD Report on DWSD/GLWA), and 8.1 (Office of the Auditor General External Quality Review).
• Removal of Duplicate: Item 7.11 was removed as a duplicate.

Public Comments & Testimony

• The Rattler (prisoner number 29647039): Called for Councilmember McCampbell to summon Gina Avery Walker, Director of the Detroit Department of Elections, to explain how council-allocated funds to the elections department have been spent. Expressed distrust of the election process.
• Cunningham: Thanked council members for support, requested prayers and donations for a replacement outreach vehicle, and praised the disability task force. Noted past negativity from the previous council.
• Betty A. Varner (President, Souda Ellsworth Black Association): Thanked council for supporting a mini market in the community (a food desert). Urged the administration to provide funding for the Gratiot corridor and requested a $1,500 fee waiver for a land use hearing needed to obtain playground equipment.
• William M. Davis (former DWSD employee): Strongly opposed the GLWA lease agreement (item 7.6), arguing it gave the city less power, control, and flexibility, and no rent increases. Called for renegotiation to get a more equitable return, referencing the city's bankruptcy and former Mayor Coleman Young's warnings.
• Ronald Foster: Criticized the city's budget direction and policies, particularly GLWA, which he called a “waste dump for the state.” Expressed concern over council members’ personal agendas and lack of independence from the former mayor's influence.
• Zoom User (Mr. Smith): Expressed disappointment with Councilmember McCampbell, reported seeing multiple EPU vehicles before his phone was taken, and called for forensic audits of city departments. Complained about the Detroit Land Bank’s unmaintained properties and nuisance abatement selectively enforced. Criticized a contractor and raised concerns about corruption. Rejected an offer of friendship from Jerry Ashford.

Discussion Items

1. DWSD/GLWA Financial Review and Update (Item 7.6)

The Legislative Policy Division (LPD) presented its annual high-level financial review of DWSD and GLWA. Key points:

• GLWA was created in 2016 via a 40-year lease with a flat $50 million annual payment to DWSD ($27.5M sewer, $22.5M water).
• DWSD's FY 2025 audited financials: Water fund operating income ~$5M, capital grants $53M; Sewer disposal fund operating income ~$19M, capital grants $16M.
• GLWA's FY 2025 audited financials: Water fund operating income ~$31M; Sewer fund operating income ~$54M, capital grants $37M.
• LPD expressed concern about project delays negatively impacting service delivery.
• DWSD Deputy Director Sam Smalley and CFO Istacker Raman presented the department's strategic priorities: green infrastructure, fair rates, infrastructure strengthening, public health, and customer experience.
• DWSD has replaced over 17,000 lead service lines (can do 250/week with funding), aims to replace 70,000 lines at a cost of $700M. Self-financing would require 15% annual rate increases; bonding would require 5.5%.
• The average age of water mains is 93 years; DWSD replaces about 13.6 miles per year, aiming to reach 30 miles per year.
• DWSD is cleaning 600 miles of sewer annually (every 4.5 years) and 8,000 of 90,000 catch basins.
• DWSD received $175M federal grant for alley sewer repairs (9,000 connections).
• The water board building needs at least $30M in repairs; a decision on whether to invest or relocate is expected by end of 2026.
• Lifeline H2O affordability program currently protects 4,700 customers; full funding for all eligible (up to 30,000) would require $18M.
• Council members asked about renegotiating the GLWA lease (DWSD does not recommend it), water main break costs ($15-20K per break), contractor penalties, and the building's market value. Concerns were raised about affordability and the impact of federal grant freezes.

2. Fiscal Year 2027 Budget Implementation Discussion #3: Public Safety (Item 130)

The committee reviewed four shared priority items:

• DPD Truck Traffic Enforcement Unit Pilot: Item #2 (Member Santiago Romero) – $550,000 for a pilot in District 6 with citywide rollout. Commander Ian Sedry reported the unit is being built; two officers will be dedicated daily. Training is underway with launch expected in Q4 2026. Residents can report violations via SeeClickFix or local precincts. Education efforts with trucking companies are ongoing.
• Citizens Blight Patrol: Item #3 (Member Callaway) – $50,000 to roll over and create a separate cost center for blight patrol, modeled after Citizens Radio Patrol. Lieutenant Delisha Anderson reported that the standard operating procedure (SOP) and ordinance are with the legal department for review. The program will be citywide; rollout expected in Q2 2027. About 50 people have signed up.
• Executive Protection for City Clerk: Item #4 – Two DPD officers assigned to the City Clerk with same level of training as mayor’s detail. First Assistant Chief Hayes confirmed the detail is budgeted for primary, general, and special elections, and can be activated for rallies or other events at the clerk’s request.
• DFD Capital Investment Study: Item #49 (Member Benson) – $500,000 for a capital investment study of fire facilities. Deputy Commissioner Hillman reported an RFP is being developed with OCP and should be released shortly. Contract award expected by January 2027, with analysis complete by FY28 Q3. The study will include response capabilities per NFPA/ISO standards and stakeholder input.

3. Unfinished Business: Car Wash Contracts (Item 7.1)

The committee discussed a contract for vehicle washing services that was sent back from formal session because it lacked east-side locations. Councilmember Waters and Vice Chair Johnson stressed the need for equitable distribution. OCP’s Raymond Green said they are actively working with three potential east-side vendors but the process takes months (due to treasury clearance, financials, etc.). Current contracts have about 1 year 10 months remaining. The committee agreed to bring the item back in one week with an update on east-side locations.

4. Risk Management Council Annual Report (Item 7.2)

Risk Manager Larry Foley presented the annual report. Key highlights:

• The city spends ~$3.2M annually on insurance premiums ($2.5M on property insurance). An RFP for a new broker is underway.
• Litigated auto payouts (2019-2025) total ~$50M across DPD, DFD, and DDOT. A single catastrophic loss can spike yearly results.
• The risk management committee is focusing on driver hiring, training, and accident investigation to reduce losses.
• Pollution legal liability claim (from residential demolitions) has been submitted to the insurer; process is ongoing.
• Workers’ compensation claims have decreased significantly with Comp One as administrator.
• The report was received and filed.

5. Fiscal Year 2027 One-Month Financial Report (Item 7.3)

Deputy Budget Director Matt Spath and Treasurer Valerie Gowley presented the July 2026 financial report. Notable items:

• The city received the GFOA Certificate of Achievement for the 8th straight year and the Distinguished Budget Award for the 4th straight year.
• July variances: $3.7M unfavorable in other revenues (timing), $11.4M unfavorable in professional contractual services (timing of invoices). These are expected to smooth out.
• The budget includes $22.5M in continuing appropriations from FY26 unspent balances (subject to audit finalization).
• Employee count: Police dropped 58 (school crossing guards on summer break); Fire increased 37 (student firefighters).
• Income tax: Partnerships saw a spike ($7.8M) due to state cleanup of misapplied payments; a corresponding reduction in corporate tax is expected next month.
• Cash position: $1.4B total general ledger cash, down ~$386M from prior year (due to use of retiree protection trust fund, capital project proceeds, and ARPA dollars).
• Accounts payable: Three invoices over 61 days are being resolved.
• The item was brought back for one week to allow OCFO to address a question about an unpaid invoice.

6. Other Unfinished and New Business

• 7.4 (Data Center Tax Revenue Impact): Brought back in three weeks.
• 7.5 (Claims Ordinance Amendment): Law Department requested one-week bring back; committee approved.
• 7.7 (Property Tax Legislation Analysis): Brought back in three weeks (Member Waters).
• 7.8 (Grant Opportunities for Community Organizations): Brought back in one week; Member Waters noted she had not received the memo.
• 7.9 (Data Center Tax Revenue Impact Analysis): Brought back in three weeks.
• 7.10 (Grant Applications Report): Brought back in three weeks.
• 8.2 (NEZ Certificate for 3436 Cochrane): Approved and sent to formal. Developer Sean Tidwell (King & Cocker) proposed a 21-unit apartment building with 19 parking spaces, six units at 80% AMI and nine at 120% AMI. Total development cost ~$8M. Over 80% Detroit-based contractors. First ground-up development for the team.
• 8.3 (Budget Implementation Follow-up): Brought back in three weeks.
• 8.4 (Montif Branch Capital Improvements): Brought back in three weeks (Vice Chair Johnson).

Key Outcomes

• Approved and Sent to Formal Session: Item 8.2 (NEZ for 3436 Cochrane).
• Received and Filed: Items 7.2, 7.6, 8.1.
• Brought Back in One Week: Items 7.1 (car wash contracts – for update on east-side locations), 7.3 (financial report – to answer invoice question), 7.5 (claims ordinance amendment), 7.8 (grant opportunities memo).
• Brought Back in Three Weeks: Items 7.4, 7.7, 7.9, 7.10, 8.3, 8.4.
• Removed: Item 7.11 (duplicate).
• Public Safety Budget Items: All four items are on track. DPD truck enforcement pilot launching Q4 2026; blight patrol rollout Q2 2027; executive protection for City Clerk is operational; DFD capital study RFP to be released shortly.
• DWSD/GLWA: No action taken; report received and filed. Council members expressed ongoing concerns about affordability, the fixed $50M lease payment, and the need for state/federal funding for lead service line replacement and affordability programs.
• Risk Management: Report received; focus on reducing auto losses through driver safety initiatives.