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September 29, 2025

September 29, 2025

DETROIT FINANCIAL REVIEW COMMISSION

REGULAR CITY MEETING

Monday, September 29, 2025, at 1:00 p.m.

Using: Microsoft Teams

MINUTES

  1. Call to Order
    1. Chairman, Kevin A. Smith called the meeting to order at 1:00 p.m.
  2. Roll Call
    1. Let the record show that 6 Commission members eligible to vote were present. A quorum was present.
  3. Approval of proposed Minutes from the August 25, 2025, Regular City Meeting
    1. Motion made by commissioner Berry and supported by commissioner Walsh to approve the draft minutes of the commission’s August 25, 2025, city meeting as presented. The commission approved the minutes as presented.
  4. Executive Director’s Report
    1. Patrick Dostine stated that based upon the city’s monthly financial report for the 1 month ending July 31, 2025, the city continues to remain in compliance with all statute relevant to the waiver status.
    2. Mr. Dostine Informed the meeting that the revenue estimating conference was held last Monday in council chambers and noted that the conference principals unanimously adopted the revenue estimates from the city, which covered FYs 27-30.  He further noted that the recurring general fund revenue is projected to increase through the four-year plan on avg about 2.2% annually. The lowest year over year increase is FY27 at 1.8%, the highest is FY29 at 2.8%).  He further stated that two weeks ago the mayor held a press conference to announce that the city was going to submit a resolution to council that creates a fiscal year 2026 corporate income tax reserve fund and deposits $42M from the FY25 operating surplus ($60.2M) into the newly created fund.
    3. Which is necessary because corporate income tax collection has decreased due to, among other things, provisions in the Big Beautiful Bill and tariffs. Both have served to reduce taxable corporate profits and therefore reduce corporate income tax collection. The high-water mark for corporate income tax was in FY23 when the city collected $68M. The low-water mark for corporate income tax collection is projected to be this fiscal year, at $28M. That’s nearly a $40M drop off from FY23, or a 58.6% reduction.  The revenue estimating conference had to revise the four-year estimates from the February 2025 revenue conference to adjust for the reduction of corporate income tax collection, which is on average $43M less per year through FY29. The forecast for recurring general fund- revenue for FY25 made 12 months ago at last September’s conference compared with pre-audited actuals now available shows a forecast error of two-tenths of one percent. It is an impressively small-forecast error, it’s on the “preferred conservative side” as Principal George Fulton observed.
    4. He also gave an update on the pensions, noting that for the City’s fiscal year that just ended June 30, 2025, the city made all actuarially required contributions to both plans, $92.4 million to PFRS and $85.7 million to GRS. As of the most recent actuarial funding valuations for the year ended June 30, 2024, the GRS legacy plan had $1.4 billion in assets and $2.3 billion in accrued liabilities, or 61.6% funded. The PFRS legacy plan had $2.3 billion in assets and $3.2 billion in accrued liabilities or 71.9% funded.  For the year ended June 30, 2025, both GRS and PFRS had returns on their investments of over 10%. The audit for that fiscal year has now started and should show an increase in the funded levels of both plans due to City contributions and the solid investment returns.  City Council appropriated $10 million for FY26, $5 million to GRS and $5 million to PFRS, to be distributed to retirees.  The distribution to retirees will likely happen in the Dec. 1 checks.
  5. Old Business
    1. None
  6. New Business
    1. None
  7. City’s Financial Report for the 1 month ended July 31, 2025 – 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
    2. William Davis
  9. Next Meeting Date
    1. City Regular Meeting: Monday, October 27, 2025, at 1:00 p.m. using Microsoft Teams
  10. Adjournment
    1. Motion made by commissioner Blaszkiewicz and supported by commissioner Stoudemire to adjourn. Motion moved and supported; 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

  • Dr. J. Barnwell
  • Akim Berry
  • David Blaszkiewicz
  • Kevin A. Smith
  • Tanya Stoudemire
  • Dr. Vaughn
  • John Walsh

Members Absent

  • Jen Flood
  • Ron Rose
  • Mary Sheffield
  • Dr. N. Vitti