Live reporting by
Amelia Benavides-Colón
Board of Review: The Pay as You Stay (PAYS) helped save 12,000 people from tax foreclosure, and the Homeowners Property Exemption (HOPE) program will sunset next year absent additional action. OIG: Closed 16 of 24 new investigations, Kamau Marable expected to succeed Ellen Ha.
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Amelia Benavides-Colón
@benavides_colon
Rise and shine, Detroit 🌇🌞
I’m covering all four of today’s Detroit City Council Budget Hearings for @DetDocumenters !!
Check out our media partners:
@BridgeDet313 @chalkbeatDET @freep @media_outlier @metrotimes @michigan_public @PlanetDetroit @wdet @wxyzdetroit
I’m covering all four of today’s Detroit City Council Budget Hearings for @DetDocumenters !!
Check out our media partners:
@BridgeDet313 @chalkbeatDET @freep @media_outlier @metrotimes @michigan_public @PlanetDetroit @wdet @wxyzdetroit
06:36 AM Mar 28, 2024 CDT
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Today's meetings will wrap up Week 3 of this year's 46 budget hearings, all of which were covered in partnership by @DetDocumenters & @BridgeDet313
These meetings tell us exactly where the $ is being spent & what future plans are
Catch up on them all:
outliermedia.org/detroit-budget…
These meetings tell us exactly where the $ is being spent & what future plans are
Catch up on them all:
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All of the budget hearings are held at 2 Woodward Ave., Suite 1340 in the Coleman A Young municipal center,
Or you can join virtually or watch live or stream on Channel 10:
detroitmi.gov/government/cit…
Or you can join virtually or watch live or stream on Channel 10:
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First up on today’s agenda is the Board of Review Budget Hearing at 10 a.m.
This body hears and determines appeals concerning real estate and personal property. The Board of Review is one of the only opportunities a taxpayer has to appeal before taxation.
This body hears and determines appeals concerning real estate and personal property. The Board of Review is one of the only opportunities a taxpayer has to appeal before taxation.
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Today the Board of Review will answer questions from City Council’s 2024-25 budget analysis.
Detroit Mayor Mike Duggan’s Office recommends $930,397 for FY2025, which is a $4,047 increase from FY2024.
Their questions:
detroitmi.gov/sites/detroitm…
Detroit Mayor Mike Duggan’s Office recommends $930,397 for FY2025, which is a $4,047 increase from FY2024.
Their questions:
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Once we wrap up with BOR it’ll be right into the Office of Inspector General budget hearing at 11 a.m.
This body investigates waste, abuse, fraud & corruption in City gov., with jurisdiction extending to all employees, contractors and those seeking to do business with Detroit.
This body investigates waste, abuse, fraud & corruption in City gov., with jurisdiction extending to all employees, contractors and those seeking to do business with Detroit.
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For FY2025 Council has a host of questions for the department:
The mayor is proposing a FY2025 budget of $1,742,634
detroitmi.gov/sites/detroitm…
The mayor is proposing a FY2025 budget of $1,742,634
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now that you have everything you need to follow along - i’ll be back when it’s go time!
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Looks like Council is still wrapping up the Planning & Economic Development Standing Committee -- I'll check back once it's budget time
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Meeting is being called to order at 10 a.m. by Council President Mary Sheffield
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I got distracted and missed the meeting's beginning but it looks like we have two representatives of the Board of Review beginning the presentation
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The program began to see a decline in 2023 as the housing market stabilized, BOR says
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BOR is giving a shoutout to Dan Gilbert's Detroit Tax Relief Fund for helping to stabilize the community
gilbertfamilyfoundation.org/keeping-detroi…
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BOR says a recent change in state statutes took away BOR's ability to deviate from guidelines for "substantial and compelling reasons"
There's a part of Detroit experiencing severe medical debt that is harming their day-to-day life -- that BOR is now unable to assist
There's a part of Detroit experiencing severe medical debt that is harming their day-to-day life -- that BOR is now unable to assist
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The budget request:
BOR says what they want is simple, the 2% increase everyone else is getting with the understanding that the recent tax reform ordinance added additional responsions to BOR
BOR says what they want is simple, the 2% increase everyone else is getting with the understanding that the recent tax reform ordinance added additional responsions to BOR
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BOR says they struggle to make the job appealing to members when there's no mileage or other benefits to offset the change in meeting location versus offices.
There should be an added per diem cost for those facing extra fees
There should be an added per diem cost for those facing extra fees
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Proper compensation is a top priority for the upcoming budget
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BOR said a lot of what their job entails is listening to and managing pain... attending funerals... and assisting people through the worst phases of their lives. That undeniable service should be compensated accordingly, they said.
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A written response to the questions I posted earlier was submitted, and we are moving into councilmember questions
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Sheffield is asking what the appropriate compensation would be.
BOR said they initially requested an additional $20,000 for FY2025, the 2% increase everyone else is getting would be around $18,000
BOR said they initially requested an additional $20,000 for FY2025, the 2% increase everyone else is getting would be around $18,000
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BOR said a major issue around the city is residents without bank accounts. Partnerships are being made with select banking institutions to allow residents to open accounts with ZERO balance - more information is coming soon
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For clarification, the BOR is asking to add 3 days to board members yearly salary - which would be about $1,200
There is disagreement between Council and Board between what the Mayor is proposing versus what is being asked
There is disagreement between Council and Board between what the Mayor is proposing versus what is being asked
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The 3 days were calculated to equate to the 2% bonus being distributed across other departments.
Inflation rates in 2023 were at about 5%
Inflation rates in 2023 were at about 5%
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Question time:
Councilmember-at-large Mary Waters (second from the left) says BOR is not asking for enough money and they aren't giving themselves enough credit.
Councilmember-at-large Mary Waters (second from the left) says BOR is not asking for enough money and they aren't giving themselves enough credit.
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Waters wants to know what happened to the outreach positions she made the budget for last year
BOR says the job is posted and working to be filled -- and they will follow-up after this meeting for an update because it is a highly needed position
BOR says the job is posted and working to be filled -- and they will follow-up after this meeting for an update because it is a highly needed position
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Councilmember for D-4 Latisha Johnson (far right)
Johnson she looks forward to the future prioritization of medical expense debt and appreciates the tireless work of BOR
Johnson she looks forward to the future prioritization of medical expense debt and appreciates the tireless work of BOR
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Johnson wants to know about the effectiveness of community outreach programs, how did that go in 2023?
BOR said it's a balancing act considering how new the programs are, they're a work in progress. He said better planning and intention should be put into the future ones
BOR said it's a balancing act considering how new the programs are, they're a work in progress. He said better planning and intention should be put into the future ones
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Pro-Tem James Tate for D-1, (second from left)
How will BOR go about the full implementation of the automated services?
How will BOR go about the full implementation of the automated services?
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BOR said the tool was not robust enough to fulfill all of the department's needs - so it needed to be revamped into a more efficient processing tool
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BOR said Rocket Mortgages has offered to put money into this new software, but only if the city of Detroit has skin in the game
The price: $600,000
It'll be a comprehensive software offering access to all applications and other services
$130,000 of grants left over from '23
The price: $600,000
It'll be a comprehensive software offering access to all applications and other services
$130,000 of grants left over from '23
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Tate wants to know if that "skin in the game" is included in this budget?
No it's not, but it'll be around $200,000.
Tate is moving this topic into executive session to discuss further.
No it's not, but it'll be around $200,000.
Tate is moving this topic into executive session to discuss further.
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Tate is also asking about the $85,000 dedicated to a liaison position in 2023 that was never filled.
What happened to those funds and is that salary built into the FY2025 budget?
What happened to those funds and is that salary built into the FY2025 budget?
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That would fall into the Office of the Assessor budget, BOR said.
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Councilmember Scott Benson of D-3 (far left)
Benson said his greatest concern is that BOR is meant to be a grant-making program, and Council is intended to offer relief. What is the total value of that relief BOR provides to residents each year?
Benson said his greatest concern is that BOR is meant to be a grant-making program, and Council is intended to offer relief. What is the total value of that relief BOR provides to residents each year?
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BOR said for 2022 that would average around $15 million through all jurisdictions.
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Of the current 15,000 applications, how many are new, Benson asks?
BOR said 2/3 of applications processed need to be re-applied each year, so 1-12K per year is the average
BOR said 2/3 of applications processed need to be re-applied each year, so 1-12K per year is the average
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Benson said that Council is putting forward $1 million in exchange for $15 million in community relief through BOR.
So what programs is BOR connecting residents for them to sustain support after they get BOR's assistance?
So what programs is BOR connecting residents for them to sustain support after they get BOR's assistance?
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Benson said if the BOR requires a standard level of relief each year, then why don't they just make that regular and meet on an as-needed basis - should we be offering you more money in order to continue operations, Benson proposes?
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BOR said several inter-departmental conversations are taking place that can't be discussed yet
Dugann's Dept of Neighborhoods offers a level of similar services and has more authority than the BOR does - and they should be working together to serve people better, BOR said
Dugann's Dept of Neighborhoods offers a level of similar services and has more authority than the BOR does - and they should be working together to serve people better, BOR said
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Councilmember Gabriela Santiago-Romero of D-6 (second from right)
Santiago-Romero wants to know if BOR is working with the Lein Team to get support?
Santiago-Romero wants to know if BOR is working with the Lein Team to get support?
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BOR said yes, they've worked together on several occasions.
What do you need to continue the PAYS program, Santiago-Romero asks?
A change in state law, BOR replied.
What do you need to continue the PAYS program, Santiago-Romero asks?
A change in state law, BOR replied.
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Councilmember-at-Large Coleman Young II (right of Sheffield)
Young wants to know the impact of the 12,400 homeowners currently in the PAYS program
Young wants to know the impact of the 12,400 homeowners currently in the PAYS program
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BOR said the answer to that question is unknown.
However, the transition of ownership throughout the city isn't new. The importance of a home's value on a person's life trajectory is something that must be weighed heavily. A number isn't known, but the circumstance is extigent
However, the transition of ownership throughout the city isn't new. The importance of a home's value on a person's life trajectory is something that must be weighed heavily. A number isn't known, but the circumstance is extigent
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Young wants to know how his designation to the advertising budget was used? Is there a goal for who BOR wants to reach and how are they tracking those metrics?
BOR said there is still a relatively large # of people who struggle w/ tax responsibility (aka HOPE program)
BOR said there is still a relatively large # of people who struggle w/ tax responsibility (aka HOPE program)
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The advertising budget was used for door-knocking efforts, nothing on television.
Young said he'll follow up on this later
Young said he'll follow up on this later
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Councilmember Fred Durhal III of D-7 (far left) wants to know how feedback from taxpayers is incorporated into community stakeholder suggestions for the future?
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Property Assessment Board of Review Willie C. Donwell is breaking down into tears recounting the story of walking Detroiters through the loss of their homes. He said there was a recent occurrence triggering him, and people really need to understand the value of this role
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Durhal wants to know about the assessor results showing overtaxation
BOR said the process as it is works, it just needs to be improved in certain areas to be more efficient. It's important to remember Detroit is older than most of America, he said
bridgedetroit.com/council-respon…
BOR said the process as it is works, it just needs to be improved in certain areas to be more efficient. It's important to remember Detroit is older than most of America, he said
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Donwell said the assessing process is 40% technical, 60% art because of how old the homes are -- and lots of effort is being put into assessments
Durhal said he's open to starting a roundtable with Michigan legislators to discuss solutions
Durhal said he's open to starting a roundtable with Michigan legislators to discuss solutions
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This concludes the Board of Review FY 2025 Budget presentation.
Closing remarks from Donwell, he's humbled and grateful by the role he serves.
Closing remarks from Donwell, he's humbled and grateful by the role he serves.
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It's 11:47 a.m. and we may be behind schedule but that's okay - it's time for the Office of the Inspector General!
This body investigates waste, abuse, fraud & corruption in City gov., with jurisdiction extending to all employees, contractors & those seeking to do business.
This body investigates waste, abuse, fraud & corruption in City gov., with jurisdiction extending to all employees, contractors & those seeking to do business.
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Representing OIG today is Inspector General Ellen Ha and Deputy Inspector General Kamau Marable
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Ha says this will be her last budget meeting as her role expires this year -- she is asking for an increase this year
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For context:
It was the OIG who made the decision on Tuesday to bar former contractor Bobby Ferguson from doing business with the city until March 2033 because of his affiliation with disgraced Detroit Mayor Kwame Kilpatrick
cbsnews.com/detroit/news/d…
It was the OIG who made the decision on Tuesday to bar former contractor Bobby Ferguson from doing business with the city until March 2033 because of his affiliation with disgraced Detroit Mayor Kwame Kilpatrick
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Ha said approve the budget increase is a simple decision to make, as OIG provide a quality service and needs technological improvements in order to keep up
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Ha said everyone should be aware that their data is being tracked at all times.
It's almost like she can sense me watching...
It's almost like she can sense me watching...
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The charter also requires sufficient funds, and we are in an era where being tech-savvy is necessary for survival
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This concludes Ha's presentation and we open the floor for questions.
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President Sheffield (queen in the red blazer) wants to know if any of the general funds have been set aside for emergencies - and if restitution payment is being collected
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Tate has zero questions and made a motion to designate the requested $130K for the new position - he said OIG gets what they ask for because they show proof of the return on the investment with all their amazing work
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Santiago-Romero wants to know what some of the common requests are - the answer is ticket complaints which doesn't fall in their territory
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Johnson wants to know how recommendations are selected for follow-up
Ha said OIG doesn't have the authority to enforce its recommendations but the staff did decide to create a table in the quarterly report with the status of all recommendations
Ha said OIG doesn't have the authority to enforce its recommendations but the staff did decide to create a table in the quarterly report with the status of all recommendations
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Johnson said she will be personally following up after hearing worrying advice given about circumventing the follow-up process
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Johnson said she's hopeful Deputy Inspector Marable applies for the position as these transitions are usually the smoothest
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Okie Dokie folks - this wraps up the morning session of the Detroit City Council Budget Hearings for #DETDocumenters. We now stand in recess at 12:30 p.m.
I'll be picking up this afternoon on a fresh thread, so this will end the morning session live-coverage
I'll be picking up this afternoon on a fresh thread, so this will end the morning session live-coverage
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