Detroit CFO Jay Rising announces retirement after OCFO annual update

Jay Rising, Detroit chief financial officer, told City Council he will retire at the end of the month after delivering the Office of the Chief Financial Officer's annual update.

Rising and OCFO staff summarized a string of finance milestones since bankruptcy: two-notch bond upgrades from Moody's and S&P, seven consecutive timely annual comprehensive financial report (ACFR) completions, a tenth consecutive surplus, and a balanced budget for the most recent year. OCFO officials said the office consolidated payroll, banking, procurement and investment functions after bankruptcy to strengthen controls and reduce fraud risk.

"We have to certify at the end of the budget process that the budget adopted by council actually is balanced," Rising said, describing the OCFO's statutory certification role and its evolution since bankruptcy.

Chief deputy CFO Tanya Stoudemire reviewed operational outcomes and FY26 priorities. Stoudemire said the city has obligated ARPA funding by the federal deadline of Dec. 31, 2024, has spent 64% of ARPA allocations to date and must spend remaining ARPA monies by Dec. 31, 2026. She said the administration expects to send council an updated list of potential projects for newly identified ARPA appropriations and is seeking an additional $5 million to supplement a $9.5 million appropriation already in the FY26 budget process.

John Naglick, OCFO controller, outlined audit results and single-audit requirements for federal awards. Naglick said the ACFR has been delivered on time for seven years and that the number of audit findings has declined substantially; the OCFO reported one finding in the most recent annual audit cycle and five findings on the single audit for federal awards in 2024.

Deputy CFO and Treasurer Nikhil Patel reviewed treasury operations, reporting an increase in current-year property tax collections from about 74% in FY2015 to roughly 85% most recently. Patel described improvements planned for payment platforms, clearer bill adjustments and efforts to speed refunds. He also described the "Plan Ahead" property-tax prepayment program, which the OCFO is promoting and expecting to integrate with a new payments platform.

Deputy CFO and Assessor Alvin Horn described assessor activity in 2024: field reviews that exceeded the city's 20% requirement, targeted site visits in districts showing large market movement and an uptick in HOPE property tax exemption applications. Horn noted Detroit's long housing stock, saying the average single-family home age is about 93 years, which factors into condition and depreciation analyses used in mass appraisal.

Chief Procurement Officer Sandra Stahl said procurement processed more than 6,000 requisitions in FY24 and reported continued progress on contracting and outreach; she said a recent procurement ordinance amendment has streamlined small purchases and encouraged local participation.

Council members used the hearing to press OCFO staff on revenue diversification, the structure and effects of a proposed land-value tax, local-option sales and excise taxes (including entertainment/amusement or lodging levies), and how ARPA interest earnings have been handled. Rising and staff said federal rules permit interest earned on ARPA proceeds to be retained in the general fund and that such interest has been budgeted as general fund revenue rather than segregated in a dedicated account.

The OCFO presentation identified near-term work: finishing the UltiPro payroll integration for Detroit Police Department non-sworn staff and then rolling UltiPro out to sworn personnel, continuing reductions in audit findings, implementing treasury payment improvements, and refining the assessor's valuation model. Stoudemire said the FY26 budget request includes a net increase of five positions, largely in the controller's office and treasury to support UltiPro implementation and backlog reduction.

Council President Pro Tem James Tate and other council members thanked Rising for his service and asked for written follow-ups on several items including a local-option sales tax/entertainment excise study, the treatment of ARPA interest and the payment-platform rollout timeline. Rising and his deputies said they would provide follow-up materials to council and identified staff who will continue OCFO operations after his departure.

Ending

The hearing closed with council directing multiple items to executive session for final budget deliberations and to consider supplemental appropriations related to ARPA reassignments and community pilot programs.