GRAND RAPIDS, Mich. -- Grand Rapids City Manager Mark Washington highlighted a number of goals in a preliminary budget presentation to the city commission's Committee of the Whole on Tuesday morning.
Among other things, it calls for an 8.6-percent overall increase over the current budget, with $690 million in total expenditures.
Washington told commissioners that some of the goals in the fiscal year 2025 budget include maintaining essential city services, which would entail adding 28 positions.
"That we spoke about doing during the commission retreat last fall and, again, during the mid-year work session back in February. To affirm that these are some of the things you wanted to see improvement on and, hopefully, the investments in this year's budget will help us do that," Washington said.
It was the first of several planned presentations on the FY '25 budget proposal.
The City of Grand Rapids provided more details in a news release:
The proposed $690 million spending plan – including $186 million in the General Fund – provides the resources needed to continue accomplishing strategic objectives while making transformational investments.
The proposed level of operations and investments contained in the fiscal plan will result in an estimated property tax millage rate of 8.9544 mills – a decreased rate of 0.0781 mills (0.1%) under FY24.This rate continues refuse, recycling and other “Clean Community” services at their FY24 level.
The proposed fiscal plan includes $690 million in total appropriations across all funds – an overall increase of 8.6% from the FY24 adopted budget. The proposed General Operating Fund (GOF) appropriation for FY25 is $185,656,848 – an increase of 3.9% over the FY24 adopted budget. The significant drivers of this increase are higher prices for goods and services, as well as competitive wage and benefit increases included in labor agreements completed during FY23.
This budget proposes:
- Continuation of all basic services.
- Emphasis on the focus areas prioritized by the City Commission in November 2023 and informed by multiple points of resident feedback obtained from boards, commissions, surveys and meetings.
- 28 position additions, which focus on service enhancements in emergency dispatch, 3-1-1 customer service, cemetery maintenance, and for the future Kendall Street Fire Station.
- Ongoing investments in existing capital assets like utilities, roads and buildings – along with continued investments in the transformation of the Grand River corridor, including relocation of City services from 201 Market to interim facilities followed by a permanent move to Scribner Avenue to allow for construction of the Acrisure Amphitheater. The sale of 201 Market will allow the City to consider depositing up to $10 million in the affordable housing fund.
- Sustained funding for core public safety services including the Police Department (represents 34.9% of GOF and includes 304 sworn officer positions) and Fire Department (represents 23.6% of GOF and includes 220 sworn fire positions) – along with preventive approaches including Cure Violence, mental health co-response, victim services, homeless outreach efforts, and fire prevention initiatives like the Residential Safety Program (smoke and carbon monoxide detector checks and installs).
- Continuation of sustainability practices – including continued focus on tree planting and hazard tree trimming services, purchase of Renewable Energy Credits (RECs) to help meet the City’s commitment to achieve 100% of municipal energy consumption from renewables by June 30, 2025, and infrastructure improvements to pave the way for a future solar installation at Butterworth Landfill.
- Approximately $63.5 million in investments that have a quantifiable equity outcome or impact, continuing our focus on reducing barriers and enhancing equitable outcomes across our portfolio of services – along with increased investments in training for employees around language access, continued focus and accountability around our commitments to contracting with Micro-Local Business Enterprise (MLBE), investment in the Third Ward Equity Fund, and significant capital investments in parks and trails in the Third Ward, including Martin Luther King Park Lodge, Roosevelt Park Lodge, and planning for trail connections within the Third Ward to the Grand River Greenway series of trails along the Grand River.
- The Water System estimates replacing approximately 2,000 lead service lines in FY25 by investing additional funding from operations as well as leveraging Drinking Water Revolving Loan Funds. Investments and upgrades to treatment equipment at the Lake Michigan Filtration Plant are planned.
- Water/sewer capital investments total approximately $65 million.
- Streets investments including sidewalks for FY25 total approximately $32 million between capital and ongoing maintenance.
- Special events parking rate increases, additional on-street parking enforcement hours, and a 2% increase in monthly parking rates.
The proposed fiscal plan continues the City’s multi-year investments in the following transformational projects:
- Kendall Street Fire Station: $8 million*
- Division Avenue Fire Station: $12 million*
- Fire Training Center: $35 million*
- Martin Luther King Park Lodge: $19.8 million*
- Relocation (phased) of City Services to 1500 Scribner: $90 million
- Roosevelt Park Lodge: $5.5 million
Projects denoted by * were aided by $41 million recently awarded by the State of Michigan.
“The FY25 Preliminary Fiscal Plan builds upon investments made in prior fiscal years and allows us to be consistent with our values and vision,” Washington said.
“This proposed fiscal plan will help address many important issues related to safety, health, environment, mobility, economic prosperity, housing, community engagement and governmental excellence. It will allow us to continue delivering governmental services and resources in a strategic, equitable, transparent and data-driven way that benefits all residents. It includes thoughtful fiscal planning that helps us execute many strategic priorities and City Commission focus areas while navigating the challenges of limited revenues, rising material and labor costs, and increased service demands and regulatory requirements.”
Six over-arching strategic priorities serve as a guide for all City decision-making, including the budget. Those priorities include Governmental Excellence, Economic Prosperity and Affordability, Engaged and Connected Community, Health and Environment, Mobility, and Safe Community.
The FY25 proposed budget also focuses on the City’s core value of customer service, which is defined as "professionally serving those who live in, work in or visit the city. Providing respectful, excellent, high quality service and assistance before, during and after the person’s interactions with the City.” Many new and continued investments are proposed in support of the City’s public-facing customer service, including:
- General and department-specific customer service training
- Two additional customer service representative positions to provide added capacity to the 311 call center
- Four additional emergency communications operator positions to support the 911 dispatch function
- An added position to support Cemetery operations
- Two positions focusing on street maintenance and one position focused on refuse collection
- An additional social worker for Police to increase victim services coordination
- Micro Local Business Enterprise outreach as a key component of the Economic Development Inclusion Plan
- Improved Development Center customer services with annual funding for additional permitting and review capacity added mid-FY24
- Improved Freedom of Information Act (FOIA) record request responsiveness through the addition of two Records Unit positions added mid-FY24
- $182,280 for new Mobile GR positions to improve consistency and 24-hour responsiveness across the City’s parking assets and to improve facilitation of traffic calming requests
This proposed fiscal plan includes approximately $63.5 million in investments that have a quantifiable equity outcome or impact. Some of the investments designed to advance equity include:
- Private lead service line replacement in Neighborhoods of Focus (NOF): $1 million
- Reduction of Child Lead Exposure: $2.4 million
- Indigent Defense: $2.8 million
- Establish Kendall Street Fire Station: $8 million
- Third Ward Equity Fund: $1 million
- Eviction Prevention and Reducing Homelessness: $380,000
- Immigrant and Refugee Engagement: $75,000
- Construction/renovation of Roosevelt Park and Martin Luther King Park Lodges: $12 million (50% of $24.5 million total; split 50/50 between FY25 and FY26)
- Office of Oversight and Public Accountability (policy change, disparity reduction and engagement): $2.6 million
The FY25 proposed budget review schedule is as follows:
Tuesday, April 23 Introduction of the FY25 Preliminary Fiscal Plan, Committee of the Whole (COW) 10 a.m.
(Budget Introduction, Financial Overview, Equity Investments, and Capital)
Tuesday, April 30 Budget Review Workshop, 9 a.m.
(Safe Community, Economic Prosperity & Affordability, Governmental Excellence,
Engaged & Connected Community)
Tuesday, May 7 Budget Review Workshop, (COW) 10 a.m.
(Vital Streets Oversight Commission, Mobility, Health & Environment, Stormwater
Oversight Commission)
Tuesday, May 14 Special City Commission Meeting, 5 p.m. if needed and City Commission Budget Public Hearing (7 p.m.)
Tuesday, May 21 Budget Discussion and Deliberation (COW) 10 a.m.
Tuesday, May 21 City Commission Adoption (7 p.m.)
The public is invited to participate by watching and sharing their thoughts on the City’s proposed spending plan. All workshops, meetings and the public hearing will air on Comcast Channel 26 and be live streamed on the City of Grand Rapids Facebook page and YouTube channel. They also will be streamed live in Spanish HERE. Those wanting to comment on the FY25 proposed budget in-person are invited to attend the 7 p.m. May 14 public hearing or scheduled budget review workshops. Written comments can be submitted to the cityclerk@grcity.us.
To download various documents related to the FY25 Preliminary Fiscal Plan, CLICK HERE.
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Schedule of Budget Review process.Photo: Source: City of Grand Rapids