Detroit FRC City Meeting Minutes 12-14-2020

Detroit Financial Review Commission

CITY REGULAR MEETING

Monday, December 14, 2020 at 1:00 p.m.

Remotely Using Microsoft Teams

MINUTES

Approved: January 25, 2021

  1. Call to Order
    1. Chairperson, Rachael Eubanks called the meeting to order 1:03 p.m.
  2. Roll Call

Members Present -8

  • Rachael Eubanks
  • Stacy Fox
  • Brenda Jones
  • Dave Massaron
  • David Nicholson
  • Chris Kolb
  • Ron Rose
  • John Walsh

Members Absent –3

  • Iris Taylor (non-voting)
  • Nicholai Vitti (non-voting)

Let the record show that eight (8) Commission members eligible to vote were present, A quorum was present.

  1. Approval of the Proposed Minutes from the November 16, 2020 Regular City Meeting
    1. Motion made by Commissioner Kolb and supported by Commissioner Rose to approve the draft minutes of the Commission’s City Meeting as presented. Motion moved and supported; the Commission unanimously approved the minutes of the above City meeting as presented.
  2. Executive Director’s Report
    1. Patrick Dostine, Executive Director, informed the meeting that in reviewing the City’s monthly report, October 31, 2020, the city continues to pay its debt obligations, remains in compliance, and there is no reason to consider rescinding the waiver at this time.
  3.  Old Business
    1.  None
  4. New Business:
    1. Consideration of the City’s requests to issue $250 million in UTGO Neighborhood Improvement Bonds (FRC Resolution 2020-6)
      1. The chief financial officer (CFO) provided a brief overview of Proposal N, a $250 million plan to address vacant houses in Detroit through rehabilitation or demolition. He stated that the goal is to preserve 6,000 homes and demolish 8,000 blighted homes; the planned borrowing is affordable under the City’s strengthened debt policy and, the CFO said, Detroit plans to launch demolitions and rehabs in January.
      2. The offices of the chief financial officer (OCFO) put together a financing strategys that allows for the adjustment of market conditions, and the contracting and procurement office is conducting fair, efficient procurement that promotes use of Detroit-based businesses and Detroit workers compliant with the City’s ordinances and executive orders.  The CFO further stated that the City has developed processes to spend and document bond proceeds to ensure tax compliance. He addressed questions from the Commission.
      3. Chief financial officer was asked to discuss the difference in the amounts of the planned borrowing ($175 million) noted in the materials presented and. Resolution 2020-6 which authorizes $250 in UTGO bond sales. He stated that the OCFO’s debt model provides for the City to sell the $175 million within the first year, and therefore it maintains a cushion for future capital issuances and ensures that the city stays at the current debt levy rate of 9 mills. The CFO also noted that authorization for the full amount of $250 million allows for a flexibility and timeliness for the city in the event the debt policy permitted additional issuance in market conditions or other advantages from an economic standpoint.
      4. The Commission agreed to approve the $250 million in UTGO Neighborhood Improvement Bonds as presented in the resolution, noting that it is the City’s call to determine when they thought it best to access the market.
      5. Motion made by Commissioner Rose and seconded by Commissioner Nicholson to approve the City’s request to issue $250 million in UTGO Neighborhood Improvement Bonds (FRC City Resolution 2020-6) as presented.  Motion moved and approved.  The Commission approved City Resolution 2020-6 as presented. The one dissenting vote was cast by Commissioner Brenda Jones.
  5. Public Comment
    1.  None
  6. Next Meeting Date
    1. City Regular Meeting: Monday, January 25, 2021 at 1:00 pm, remotely via Microsoft Teams.
  7. Adjournment
    1. Motion made to adjourn. Motion moved and supported; the Commission approved the motion to adjourn.
    2. There being no further business, the meeting adjourned at 1:43 p.m.

 

Resolution 2020-6 Roll Call with Signature