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Detroit FRC City Meeting Minutes May 24, 2021

Detroit Financial Review Commission


Monday, May 24, 2021 at 1:00 p.m.

Remotely Using Microsoft Teams


Approved: June 28, 2021


  1. Call to Order
    1. Chairperson, Rachael Eubanks called the meeting to order 1:00 p.m.
  1. Roll Call

Members Present -9

  • Dr. Barnwell
  • Rachael Eubanks
  • Dave Massaron
  • David Nicholson
  • Brenda Jones
  • Angelique Peterson-Mayberry (non-voting on city matters)
  • Jay Rising
  • Ron Rose
  • Jeremy Vidito (non-voting on city matters)

Absent - 1

  • John Walsh

Let the record show that seven (7) Commission members eligible to vote were present, A quorum was present.

  1. Approval of the Proposed Minutes from the April 26, 2021 Regular City Meeting
    1. Motion made by Commissioner Massaron and supported by Commissioner Rose to approve the draft minutes of the Commission's April 26, 2021 City meeting as presented. The Commission unanimously approved the minutes as presented.
  2. Executive Director's Report
    1. Patrick Dostine, Executive Director, informed the meeting that in reviewing the City's monthly report, ending March 31, 2021, 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.
  3. Old Business
    1. None
  4. New Business
    1. Charter Revision Commission (CRC) - Presentation
      1. Nicole Small, Vice Chair and Richard Mack of the CRC invited Dr. Belman, Professor emeritus at MSU to make the presentation on behalf of the CRC. Mr. Belman gave a detailed overview of the City's draft revised charter proposed by the 2018 Detroit Charter Revision Commission. He stated that discussions of issues as important as the proposal revisions to the City Charter require a factual basis for issues on which there is not disagreement and sharing of the sources of information and methods used to calculate the budget effect. 
      2. He further stated that many of the estimates rest on interpretations of the proposed Charter revisions which are inconsistent with the proposed language and amounts which lack documentation from the affected departments or from other appropriate sources. He noted that the city's estimates of the costs of implementing the proposed revisions are excessive and the sources of the overestimate are extreme interpretations of the requirements of the charter revisions and excessive cost estimates that are not supported by a factual foundation or transparent computations.   Ms. Small, Mr. Mack and Dr. Belman addressed questions from the members of the Financial Review Commission.  
    2. City's Year-four Waiver Renewal Request - Presentation
      1. Steve Watson, Deputy CFO/Budget Director and Jay Rising, CFO at the City made a detailed presentation to the FRC Commission.  The presentation included an overview of the adopted FY 2021-2022 budget and four-year financial plan; revenue forecast; recurring general fund revenue; recurring income tax revenue estimated components and remote work loss; wagering taxes impacted by COVID-19; FY2022 adopted budget; fiscal stability; rainy day fund; retiree protection fund; long term forecast; potential upside and downside risks; the American Rescue Plan act and the waiver requirements. 
      2. 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 rescission 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.
  5.  Public Comment
    1. William Davis
    2. Tracey Peters
    3. Michelle George
    4. Brenda Butler
    5. Joanna Underwood
    6. Richard Mack
    7. Ms. Gladis
  6. Next Meeting Date
    1. City Regular Meeting: Monday, June 28, 2021 at 1:00 pm, remotely via Microsoft Teams.
  7. Adjournment
    1. Motion made by Commissioner Peterson-Mayberry and supported by Commissioner Rose to adjourn. The Commission approved the motion to adjourn.
    2. There being no further business, the meeting adjourned at 3:04 p.m.