Mayor presents proposed FY2026 budget calling for 3‑mill property tax cut, $20 million boost for DDOT and expanded homeless services

The mayor presented the proposed fiscal year 2026 budget to Detroit City Council on the legislature’s dais, saying the plan is balanced and would include a 3‑mill reduction in the city’s debt mills and new recurring investments in transit and homeless services.

The presentation — delivered after the council established a quorum — framed the proposal as a continuation of recent revenue gains. “We are actually running $70,000,000 ahead of projection in the existing fiscal year,” the mayor said, and he attributed the city’s improved outlook to stronger income, gaming and property tax collections.

Why it matters: The budget proposal would cut the city’s debt millage from 7 mills to 4 mills, a change the mayor said would produce roughly a $150 annual saving for the owner of a $100,000 house. At the same time, the plan would preserve and add to reserves, increase recurring spending for Detroit Department of Transportation (DDOT) service and expand shelter and outreach funding for people experiencing homelessness.

Revenue, reserves and retiree protections The mayor reported the city is roughly $70 million ahead of projections in the current fiscal year, citing increases of about $22 million in income tax collections, $30 million in gaming receipts and $7 million in property tax collections. He said expenditures are about $2 million under projections and that the city will finish the year with a surplus.

On reserves, the proposal would raise the city’s rainy‑day fund to $150 million (the mayor characterized that figure as double the state‑law minimum reserve he referenced), keep $350 million in a retiree protection fund and hold about $50 million in liability reserves. “In addition to a balanced budget, we have $550,000,000 in reserves,” the mayor said.

Property tax change The mayor said the recommended budget would reduce the debt millage by 3 mills, from 7 to 4, and called the cut “a big property tax cut” for Detroit homeowners. He said the change “doesn’t affect our…