GRAND RAPIDS, Mich. — The City of Grand Rapids could spend nearly $700 million dollars in the next fiscal year under a plan presented Tuesday to city commissioners.
City Manager Mark Washington debuted his plan for fiscal year 2025 during a Committee of the Whole meeting on April 23, 2024. In total the plan calls for spending $690 million dollars starting July 1, 2024 and running through June 30, 2025.
If approved, the city would spend 8.6 percent more in fiscal year 2025 under the plan than it did in 2024. While the spending increases, some of the tax rates will slightly decrease.
The expected property tax millage rate could drop by .1% while services funded by the millage, including refuse, recycling and other "clean community" services, will operate at their current levels.
City Manager Washington says the biggest driving factor of the increased spending is higher prices for goods and services, along with competitive wage and benefit increases that are part of labor agreements.
Washington says the spending plan will maintain all basic city services with an emphasis on areas of priority identified through community feedback in 2023. Some funding is aimed at improving emergency dispatch with 4 new dispatcher positions, 2 more customer service representatives for the 311 call center, improved cemetery maintenance, and work on the future Kendall Street fire station.
The city will continue to spend money to facilitate the creation of the new downtown amphitheater as several departments adjust to temporary locations after the move out of 201 Market. Approximately $89.1 million will be spent until those departments can move to their new permanent location at the former Kent County Road Department facility on Scribner Avenue.
Public safety remains the dominant portion of the city budget. The fire department and its 220 firefighters will use 23.6% of the general operating fund at $43.8 million. The police department and its 304 sworn officers will use $64.8 million, or 34.9% of the general operating fund. The spending for public safety also includes a mental health co-response team, victim services, homeless outreach efforts, and fire prevention initiatives.
Grand Rapids continues to push to have 100% of the city government's energy consumption to come from renewable energy sources by the end of fiscal year 2025. To achieve that, the city would continue to purchase renewable energy credits. A planned solar power array at Butterworth Landfill continues to be developed.
A focus on services in the third ward will see investments in businesses and public spaces. Approximately $63.5 million will fund programs offering micro loans to local businesses, the Third Ward Equity Fund, and improvements in parks & trails, including a new $19.8 million lodge at Martin Luther King Park, and a trail system to connect to the Grand River Greenway.
The public works department will continue to replace lead water service lines, with a target of 2,000 for fiscal year 2025. The city's water treatment plant near Lake Michigan will also receive some upgrades. In total, Grand Rapids would spend $65 million on water and sewer related projects.
Road and sidewalk construction would receive $32 million.
“This proposed fiscal plan will help address many important issues related to safety, health, environment, mobility, economic prosperity, housing, community engagement and governmental excellence," Washington said. "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.”
Tuesday's presentation of the spending the plan kicks off a month-long process to its expected passage. City commissioners will hold two review workshops on April 30 starting at 9 a.m. and May 7 at 10 a.m.
A special city commission meeting and public hearing on the budget could be held May 14, starting at 5 p.m. and 7 p.m. respectively. Commissioners are expected to hold a final vote on the budget during their regular meeting on May 21 at 7 p.m.
Follow FOX 17: Facebook - X (formerly Twitter) - Instagram - YouTube
