Detroit FRC City Meeting Minutes May 20, 2024

Detroit Financial Review Commission

REGULAR CITY MEETING

Monday, May 20, 2024, at 1:00 p.m.

Remotely Using Microsoft Teams

MINUTES

1. Call to Order
   1. Chairman, Kevin A. Smith 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 29, 2024, Regular City Meeting
   1. Motion made by Commissioner Rose and supported by Commissioner Walsh to approve the draft minutes of the Commission’s April 29, 2024, City meeting as presented. The Commission 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, 2024, the city remains in good standing with the financial review commission. The city is in full compliance with statute and resolutions relative to the city’s waiver. Mr. Dostine noted that the OCFO will make a presentation to the commission that makes its case for a seventh waiver extension. He also informed commissioners that they would be asked to consider a resolution to authorize the city to borrow.
5. Old Business
   1. None
6. New Business
   1. City’s Year-Seven Waiver Renewal Request – Presentation
      1. Steve Watson, Deputy CFO/Budget Director, and John Naglick, Chief Deputy CFO/ Finance Director at the City made a detailed presentation to the Commission. The presentation included: an overview the Detroit Economic Outlook, the Revenue Estimating Conference; FY 2025 adopted budget and the Four-Year Financial Plan; the Rainy-Day Fund, and the Retirement Protection Fund (RPF) pensions.They also gave a detailed overview of the City’s ability to borrow/credit ratings; noting that the city’s credit rating continues to trend in a positive direction.They also gave a brief overview of the prior UTGO Issuance, and the prospective UTGO issuance, noting that the 2004 and 2009 ballot measures approved the issuance of $399million in UTGO bonds across a range of capital investment project categories and prior to June 2018 $286.3 million remained unissued. 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.
   2. Approving the city’s request to issue $46.3 million in UTGO Bonds and $55 million in installment purchase agreements - Presentation.
      1. Motion made by commissioner Rose and supported by commissioner Berry to approve the city’s request to issue $46.3 million in UTGO Bonds and $55million in installment purchase agreements (FRC City Resolution 2024-1) as presented.Motion moved and supported. The Commission approved the city’s resolution 2024-1 as presented.
7. City’s Monthly Financial Report for nine months ended March 31, 2024 – FYI Only
   1. Staff from the OCFO’s office of the city of Detroit discussed the above-mentioned financial report and addressed questions from the commissioners.
8. Public Comment
   1. Michelle George
9. Next Meeting Date
   1. City Regular Meeting: Monday, June 24, 2024, at 1:00 pm, remotely via Microsoft Teams.
10. Adjournment
    1. Motion made by Commissioner Rose and supported by Commissioner Blaszkiewicz to adjourn. The Commission approved the motion to adjourn.
    2. There being no further business, the meeting adjourned at 1:56 p.m.

Roll Call:

Members Present -7

• Akim Berry
• David Blaszkiewicz
• Jen Flood
• Jay Rising
• Ron Rose
• Kevin Smith
• John Walsh

Absent – 4

• Dr. Barnwell
• Angelique Peterson-Mayberry (non-voting on city matters)
• Mary Sheffield
• Dr. Vitti (non-voting on city matters)