February 7, 2023

Elected Officials Compensation Commission

Coleman A. Young Municipal Center
2 Woodward Avenue
Detroit, MI 48226

Re: Response to Request for Budget Information on Compensation Changes

Honorable Commission Members:

In your resolution approved on February 1, 2023, you requested the Office of the Chief Financial
Officer (OCFO) to report on how any compensation changes contemplated by the Elected Officials
Compensation Commission (EOCC) would impact the City’s budget and four-year financial plan.

The current fiscal year 2022-2023 budget includes nearly $1.5 million for Elected Officials
Compensation, which supports the currently approved salaries and fringe benefits for the Mayor, City
Council, and City Clerk, which have been in effect since July 1, 2020. Should the EOCC recommend
changes to the elected officials’ compensation, such changes can be incorporated in the current fiscal
year ending June 30, 2023, by a budget amendment, and in the next fiscal year budget and four-year
financial plan before it is adopted in April.

Similar to the recommendation from the 2019 EOCC, the following cost scenario assumes an
immediate 7.0% increase to make up for the last two years when none were provided, as well as
annual increases of 3.5% every July 1 through 2025.

FY23 FY24 FY25 FY26

Effective Date Upon Approval 7/1/2023 7/1/2024 7/1/2025
% Increase 7.0% 3.5% 3.5% 3.5%
Cost $23,777 $127,904 $183,611 $241,275

I will be available to answer any questions you may have at the EOCC meeting on February 8, 2023.

Best regards,

Steven Watson
Deputy CFO / Budget Director

Cc: Jay B. Rising, Chief Financial Officer

John Naglick, Jr., Chief Deputy CFO/Finance Director
Tanya Stoudemire, Chief Deputy CFO/Policy & Administration Director
Denise Starr, Human Resources Director
Conrad Mallett, Corporation Counsel
Tonja Long, Chief Administrative Corporation Counsel