City Commission adopts $786 million FY2027 Fiscal Plan

- May 19, 2026

GRAND RAPIDS, Mich. – The Grand Rapids City Commission today adopted the FY2027 Fiscal Plan, a $786 million budget that sustains essential services, supports major community assets coming online, and strategically manages financial pressures in a changing economic environment. The City’s fiscal year begins July 1, and the adopted plan positions Grand Rapids to enter FY2027 with a stable financial foundation and a clear strategy for the year ahead.

Mayor David LaGrand said the adopted plan reflects a balanced and disciplined approach for the year ahead, maintaining the City’s strong financial foundation while accounting for inflation, increased personnel costs and the phase‑out of one‑time federal resources. The plan continues targeted investments across all six Strategic Plan priority areas, strengthens key municipal operations, and supports the long‑term sustainability of transformational community projects such as the Acrisure Amphitheater, Grand River restoration and the Amway Soccer Stadium.

LaGrand noted that FY2027 represents a shift from a period of accelerated capital development to one increasingly focused on sustaining new and existing assets.

“This plan reflects our commitment to responsible stewardship, high‑quality service delivery and long‑term resilience while ensuring we continue advancing the priorities residents care about most,” LaGrand said. “Even in a more constrained fiscal environment, we are aligning resources thoughtfully to serve the community today and prepare for tomorrow.”

The adopted fiscal plan builds on significant progress made in FY2026, including the opening of the Martin Luther King Jr. Community Center, completion of the Kendall Street Fire Station, relocation to the new Public Works Facility, full staffing of authorized Police Department positions and the opening season of the 12,000‑seat Acrisure Amphitheater. Continued momentum is expected in housing development in every ward, mobility improvements, parks and trail connectivity, and ecosystem restoration along the Grand River.

City Manager Mark Washington emphasized the need for sound financial management during growth amidst an ever changing and complex environment.

“Grand Rapids continues to move forward because of sound fiscal management, strong partnerships and community engagement,” he said. “Our workforce remains committed to delivering efficient and effective city services. I would like to thank the City Commission for their leadership and partnership. I also extend my appreciation to our employees, residents and community partners whose input and collaboration help shape the City's priorities and direction.”

Budget Overview and Financial Context

  • Total Adopted Budget: $786 million, a 6.4% increase over FY2026, reflecting continued capital investment and inflationary cost pressures.
  • General Fund Revenue: Projected at $207 million, growing approximately 4.86% from property and income tax revenues.
  • Property Tax Millage: Reduced to 8.7511, a decrease of 0.1076 mills (1.2%), while maintaining essential services.
  • Primary Cost Drivers: Personnel cost increases of approximately 5.02% (total City personnel cost is $236.5 million) and rising non‑personnel costs driven by inflation and market conditions.
  • The plan anticipates ongoing economic uncertainty, including variable state revenue sharing, evolving federal funding priorities, and the conclusion of pandemic‑era support, while continuing to invest in high‑priority services and infrastructure.
  • The FY2027 plan advances the City’s 2026–2030 Strategic Plan across six key priority areas: Governmental Excellence, Economic Prosperity & Affordability, Engaged & Connected Community, Health & Environment, Mobility, and Safe Community.

Select Program Highlights

  • Water & Wastewater – $201.6 million, with water and sewer rates reflecting previously adopted adjustments averaging 2.52%; includes $11.4 million for private lead service line replacement.
  • Police – $75.4 million, including $1.3 million for 10 officers added in FY2026 in anticipation of increased state revenue for public safety.
  • Fire Services – $48.3 million.
  • Oversight & Public Accountability – $2.9 million, including $1.7 million for the Axon contract (body cameras); $400,000 to be programmed for crime prevention based on enhanced state sharing revenue program for public safety.
  • Economic Prosperity & Affordability – $56.6 million, with $49.5 million for corridor improvement districts and special authorities.
  • Vital Streets – $48 million.
  • Parks & Community Services – $40.4 million.
  • Refuse & Recycling – $21.1 million.
  • Library Services – $17.8 million.
  • 61st District Court – $13.5 million.
  • Affordable Housing Fund – Approximately $10 million will be transferred with the sale of 201 Market.
  • Federal Community Development Funding – $8.2 million, with nearly $7 million supporting homelessness and housing stability programs.
  • DASH & The Rapid Agreement – Updates avoid an approximately $1.6 million annual increase and reduce future capital needs by $7 million over five years.
  • New Positions – Fourteen new roles across Environmental Services, Water, Mobile GR, Parks and Engineering.
  • Continuation of the Third Ward Fund of $1 million to help fund:
    • Traffic & pedestrian safety improvements/construction — $200,000
    • Rx Kids Local Match — $50,000
    • Youth Employment & Violence Prevention — $250,000
    • Southeast Grand Rapids Economic Development Support Role — $200,000
    • Mental Health Support  — $150,000
    • Southtown Arts & Culture Support — $50,000
  • Mel Trotter Belongings Storage Program – $100,000 supported by the Refuse Fund.
  • Community Relations and Retail Retention Program – $60,000 for contractual support in the Engineering Department.
  • Parking Rates – No adjustments to on‑street hourly rates; special event maximum remains $25; monthly rates increase with cost of living. 

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