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City projects roughly $78.3 million year-end surplus, committee hears monthly financial report
Summary
Deputy budget director reported a strong cash position and projected a year-end surplus after council's budget actions; the committee was briefed on recent supplemental budget amendments and a court ruling allowing retirement benefit changes for police and fire.
City budget staff told the Budget, Finance and Audit committee that Detroit is tracking toward an estimated $78.3 million year-end surplus after the council's recent budget actions and supplemental amendments.
"We're still anticipating $39,200,000 over collection in revenues," Deputy Budget Director Donnie Johnson said in a presentation on the monthly financial report for the eight months ended Feb. 28, 2025. He said the city expects an overall ending surplus of about $78.3 million and that cash balances remain robust, with the general ledger cash position reported at just over $2 billion and an operating cash pool of about $998 million.
Johnson reviewed recent council and mayoral actions, noting two supplemental amendments totaling about $58.4 million that were appropriated in the current fiscal year and will appear in future monthly reports. He also told the committee that Judge Tucker had ruled in favor of the city in litigation tied to modifications of retirement benefits for police and fire, and that negotiated memoranda of understanding for benefit changes had been ratified by unions.
On personnel, Johnson said the city has generally been filling vacancies and cited successful police academy recruitment and a recent intake of 16 new transportation trainees. Income-tax collections were ahead of last year on a year-to-date basis, and accounts payable activity was largely within expected payment windows.
Council members asked for follow-up details on income-tax collection rates and about the fiscal impact of changes in residency requirements for municipal employees; Johnson said he would coordinate with Treasury to provide additional information. Committee members also discussed how supplemental budget items would be used and whether amounts would lapse or balance forward; Johnson explained that non-general fund items typically carry forward while certain general-fund supplements were expected to be expended this fiscal year.
The committee moved, without objection, to receive and place the monthly financial report on file. The report will be available in the committee record.
