Retirees and callers criticize city finances, pensions and use of UTGO bond funds

Several callers during the Internal Operations Committee’s public-comment period on April 30 criticized the size of recent pension supplements and questioned the city’s fiscal priorities, including the use of voter-approved UTGO bond funds.

William M. Davis, who said he worked for the City of Detroit from 1978 to 2012, said many general-fund retirees were pleased to see a supplemental payment on pension statements but called the amount insufficient. “This is before taxes is taken out and what have you,” he said, noting a listed supplemental payment of $472.09 for general-fund retirees in the transcript and larger payments for police and fire retirees.

Another caller said the city could have used $75 million to help retirees and accused the administration of diverting funds to other departments. “You don't have 75,000,000 to help the people who carried the brunt of the bankruptcy,” the caller said, criticizing a city $3 billion budget and citing an alleged $184 million to the public lighting department as an example of different spending priorities.

A separate caller identified in the record as “Sheldon” said nearly $1 billion in American Rescue Plan or similar funds were received and argued that UTGO (Unlimited Tax General Obligation) bond language limits how those bond proceeds can be used — he said the bonds were meant for constructing, demolishing and equipping public buildings and asserted using bond funds for operations would be illegal. The transcript records him challenging the Law Department and city finance offices to name another city that used UTGO bond funds for ongoing operations.

Speakers framed their remarks as appeals for the council to prioritize retiree relief and to clarify how bond proceeds and other revenues are being spent; the committee did not take immediate action on these public comments during the session recorded in the transcript.