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Detroit FRC City Meeting Minutes May 23 2022

Detroit Financial Review Commission

CITY REGULAR MEETING

Monday, May 23, 2022, at 1:00 p.m.

Remotely Using Microsoft Teams

MINUTES

  1. Call to Order
    1. Chairperson, Rachael Eubanks called the meeting to order 1:00 p.m.
  2. Roll Call
    1. Let the record show that seven (7) Commission members eligible to vote were present, A quorum was present.
  3. Approval of the Proposed Minutes from the April 25, 2022, Regular City Meeting
    1. Motion made by Commissioner Rising and supported by Commissioner Harkins to approve the draft minutes of the Commission’s April 25, 2022, City meeting as presented. The Commission unanimously approved the minutes as presented.
  4. Executive Director’s Report
    1. Patrick Dostine, Executive Director, informed the meeting that in reviewing the City’s monthly report, ending March 31, 2022, the city continues to pay its debt and pension obligations, remains in compliance with all statute relevant to the waiver, and there is no reason to consider rescinding the waiver at this time.
  5. Old Business
    1. None
  6. New Business
    1. City’s Year-five Waiver Renewal Request – Presentation
      1. Steve Watson, Deputy CFO/Budget Director, Jay Rising, CFO and John Naglick, Chief Deputy CFO/ Finance Director at the City made detailed presentations to the FRC Commission. The presentation included: an overview of the adopted FY 2022-2023 budget and revenue forecast ; four-year financial plan, and the City’s credit rating/ability to borrow. The commission was informed that the city is restoring budgets to the pre-pandemic projected revenues and expenditures. In addition, the budget prioritizes fiscal stability and opportunity, safety, and beauty for Detroiters; and prior year fund balance allows for the funding of additional one-time investments.
      2. They also gave a detailed overview of the four-year financial plan, noting that recurring revenues and expenditures are balanced over four years with the Retiree Protection Fund used to phase in legacy pension contributions beginning in FY24; the City did not draw on the rainy-day fund during the pandemic, and one-time surpluses is expected to increase the fund to over 12% of budget. The FRC was informed that no event specified in section 8(3) of public Act 181 of 2014 has occurred or has a substantial likelihood to imminently occur that would authorize the recission of the waiver by the commission, and the City has continued to satisfy all conditions necessary by section 8(2) of the FRC Act for the waiver requirements. They addressed questions from the Commission.
  7. Public Comment
    1. Michelle George
    2. Citizen Research Council representative
  8. Next Meeting Date
    1. City Regular Meeting: Monday, June 27, 2022, at 1:00 pm, remotely via Microsoft Teams.
  9. Adjournment
    1. Motion made by Commissioner Rising and supported by Commissioner Walsh to adjourn. The Commission approved the motion to adjourn.
    2. There being no further business, the meeting adjourned at 1:40 p.m.

 

Roll Call

Members Present -7

  • Dr. Barnwell
  • Rachael Eubanks
  • Chris Harkins
  • Angelique Peterson-Mayberry (non-voting on city matters)
  • Jay Rising
  • Jeremy Vidito (non-voting on city matters)
  • John Walsh

Absent -3

  • David Nicholson
  • Mary Sheffield
  • Ron Rose