City Manager presents $785.4 million FY2027 Preliminary Fiscal Plan to the City Commission

GRAND RAPIDS, Mich. – City Manager Mark Washington today presented the FY2027 Preliminary Fiscal Plan, a $785.4 million proposal that positions the City to sustain essential services, support major community assets coming online, and strategically manage financial pressures in a changing economic environment.

During his presentation at the City Commission’s Committee of the Whole meeting, Washington said the plan outlines 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. It 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.

Washington noted that FY2027 marks 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,” he said. “Even in a more constrained fiscal environment, we are aligning resources thoughtfully to serve the community today and prepare for tomorrow.”

The preliminary fiscal plan builds on significant progress made in FY2026, including the opening of the Martin Luther King 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 of the city, mobility improvements, parks and trail connectivity and ecosystem restoration along the Grand River.

Washington emphasized the crucial role of collaboration at every level – residents, partner agencies, businesses and a dedicated City workforce. “Grand Rapids continues to move forward because of strong partnerships and community engagement. Our workforce remains committed to delivering excellent service despite increasing demands and expectations. 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 Proposed Budget: $785.4 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 8.7513, a decrease of 0.1074 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

• $201.6 million for Water and Wastewater with water and sewer rates reflecting previously adopted adjustments averaging 2.52%; $11.4 million is included for private lead service line replacement.
• $75.4 million for Police, including $1.3 million allocated for 10 police officers that were added in FY26 in anticipation of increased state revenue for public safety.
• $48.3 million for Fire services.
• $2.9 million for Oversight and Public Accountability – $1.7 million of this is for Axon contract including body cameras; $400,000 will need to be programmed for crime prevention efforts based on enhanced state revenue for public safety.
• $56.6 million for Economic Prosperity and Affordability of which $36.8 million is for corridor improvement districts and special authorities.
• $48 million for Vital Streets.
• $40.4 million for Parks and Community Services.
• $21.1 million for Refuse and Recycling.
• $17.8 million for Library Services.
• $13.5 million for 61^st District Court.
• Approximately $10 million will be transferred to the Affordable Housing Fund with the sale of 201 Market.
• $8.2 million in federal funding for Community Development with nearly $7 million specifically supporting programs that address homelessness and housing stability.
• Updates to the Downtown Area Shuttle (DASH) service and a new agreement with The Rapid will avoid an approximately $1.6 million annual increase and reduce future capital needs by $7 million over five years.
• Fourteen new positions are proposed across non-General Fund departments, enhancing Environmental Services, Water, Mobile GR, Parks and Engineering.
• $100,000 for the Mel Trotter belongings storage program, with ARPA funding transitioning to the Refuse Fund.
• $60,000 for contractual services to support the Retail Retention Program.
• No adjustments to on-street hourly parking rates; maximum special event rate remains unchanged at $25; monthly parking rates for lots and ramps increase in line with cost of living.

Public Participation and Review Schedule

Residents are encouraged to participate in the FY2027 budget process. Budget workshops and the annual public hearing will occur throughout May, with livestreams available on Comcast Channel 26, the City’s Facebook page, YouTube channel, and a Spanish‑language livestream. Written comments may be submitted to cityclerk@grcity.us.

May 5         Budget Workshop (9 a.m.)

May 12      Budget Workshop (10 a.m., Committee of the Whole)

                  Budget Public Hearing (7 p.m.)

May 19      Commission Adoption of FY2027 Final Fiscal Plan/Budget (10 a.m., Committee of the Whole; 2 p.m. City Commission)

July 1          FY2027 Begins

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