Merry Christmas Detroit: City finishes 2025 with $105M budget surplus

• Originally projected to be $60M, 11th consecutive budget surplus swells to $105M as a result of strong financial management
• Incoming Mayor Sheffield and Council will determine how surplus will be used
• Annual budget surplus is in addition to $548 Million in reserve funds at June 30, 2025

City officials brought some Christmas cheer to Detroiters today as they announced the City of Detroit finished the Fiscal Year that ended June 30, 2025 with a $105 Million budget surplus. Chief Financial Officer Tanya Stoudemire said this marks the 11th consecutive surplus since the City emerged from bankruptcy in 2014.

Mayor Mike Duggan credited the strong operational performances of the city's department heads. "This year's surplus was generated by strong expense management. Nearly every city department finished under budget, and they did it while making sure we delivered on city services," said Duggan.

Multiple balanced budgets and surpluses + reserve funds = Detroit's financial resiliency
The City has had 12 balanced budgets and 11 budget surpluses over the years. The surpluses while varied have been consistent:

"The track record of 11 straight credit rating upgrades and 11 straight years of $100 Million surpluses reflects the strong partnership between the Mayor and City Council," Duggan said.

The decision on how to use the $105 Million surplus rests with incoming Mayor Mary Sheffield and Detroit City Council as they begin next year's budget process in February.

Mayor-Elect Sheffield noted, "Detroit's financial position today is the result of years of strong stewardship and collaboration. A $105 million surplus, paired with $548 million in reserves, demonstrates that our city is resilient, disciplined, and prepared for the future. As we begin the next chapter, my administration will work closely with City Council to ensure this surplus is invested wisely and responsibly-centered on the needs of residents, neighborhood stability, and long-term growth," Mayor-Elect Sheffield said.

Surplus exceeds initial projections
In September, the Mayor and CFO Stoudemire announced a tentative projected $60 Million budget surplus for FY 2024-25 but indicated they expected the final result to be even higher. Now complete, the audit reveals a significantly higher surplus of $105 Million for FY 2024-25.

"By working together with City Council making tough decisions in achieving balanced budgets, surpluses and creating critical reserve funds, we have created a model for financial sustainability that has benefited our residents, businesses and visitors to our great City," said CFO Stoudemire.

The City's financial reserve funds - separate from the budget surplus - also reflect the critical partnership between the Mayor's office and City Council over the years. As a result, Detroit has unprecedented financial reserves for the next administration, including:

$150 Million Rainy Day Fund
$281 Million Retiree Protection Fund
$75 Million Risk Management Liability Reserve Fund
$42 Million Corporate Income Tax Reserve Fund
TOTAL: $548 million in reserves

Additionally, over the summer, national rating agency Moody's gave the City of Detroit its 11th credit rating upgrade during Mayor Duggan's administration. According to Moody's: "Detroit continues to bolster its financial resiliency and maintain solid operating performance, which will enable it to successfully weather the adverse effects of an economic slowdown, should one occur." This follows a year after both rating agencies in a historic move upgraded the City's bond rating to investment grade by two notches with a positive outlook.

"Thanks to our strategic financial management by all of our CFOs during my 12-years, our collaborative work with City Council and the leadership of our department heads, Detroit is in a strong financial position with a bright future," said Duggan.