City Manager Unveils Budget Focused on Sustaining Essential Services

GRAND RAPIDS — City Manager Mark Washington presented a $785.4 million budget proposal for fiscal year 2027 on Tuesday, April 28. The plan represents a 6.4 percent increase over the current year's $735 million budget, Washington told the City Commission.

"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," Washington said.

The budget increase accounts for continued capital investment and inflation pressures, according to the city. Chief Financial Officer Molly Clarin noted that the city ended fiscal year 2026 with a $2.3 million deficit, with total expenditures of $207.8 million exceeding revenue of $205.5 million. The deficit was paid through the general fund balance, which will end the year at $86 million.

"When we packaged the budget, we didn't know there was going to be a war in Iran," Clarin said. "It's a good thing to have. It's like an extra savings account a person might have, you know, for that, for that, unforeseen things that pop up."

Property Taxes Face Double-Edged Sword

Washington proposed reducing the property tax millage by 1.2 percent, which would mark the third consecutive year the city manager has worked to decrease the rate. However, rising property values mean average homeowners will still pay more.

"The average home in Grand Rapids has a taxable value of $87,126," Washington said. "Should the commission approve the proposed property tax rate of 8.7513 mills, the average homeowner would pay $771.82 in property taxes in the coming year."

Last summer, the average Grand Rapids home had a taxable value of $81,354 and the average homeowner paid $720.69 in property taxes. That means homeowners would pay about $51 more annually despite the millage reduction.

Budget Breakdown

The $785.4 million plan allocates funds across six strategic priority areas:

• Public Safety: $75.4 million for the Grand Rapids Police Department, including $1.3 million for 10 new officers added this fiscal year. Fire services would receive $48.3 million.
• Parks and Community Services: $40.4 million
• Water and Wastewater: $201 million, including $11.4 million specifically for private lead service line replacement
• Library Services: $17.8 million
• Refuse and Recycling: $21.1 million
• Oversight and Public Accountability: $2.9 million

Police and Fire Funding

The budget allocates $8.3 million for police and fire overtime costs. Washington said the city is conducting a study on overtime impacts following two years of going over budget. In 2025, overtime cost the two departments $11.6 million, and 2026 saw $13.1 million in overtime costs.

"Police funding and fire funding have increased pretty significantly. So before we increase it even more for overtime, I want to try to have those departments better manage their overtime and staffing issues, see if we can leverage additional support from other agencies, as well as see what other sources of funding exist," Washington said.

Affordable Housing and Homelessness Programs

The city plans to transfer $10 million to the Affordable Housing Fund from the sale of the city's 17-acre property at 201 Market Ave SW, where the new Acrisure Amphitheater is being built.

Washington also highlighted $100,000 for the Mel Trotter Ministries personal belongings storage program, which helps those experiencing homelessness. Previously, the city used federal pandemic recovery funds for that program, but with those funds continuing to run out, the city is seeking to budget $100,000 from the refuse fund to continue the program.

The city has access to $8.2 million in federal funding for overall community development, with $7 million specifically for programs addressing homelessness and housing sustainability.

Parking and Transportation

On-street metered parking rates would not increase this year. The maximum special event parking rate remains unchanged at $25. Monthly parking rates for lots and ramps would increase in line with the cost of living.

Washington also noted a new agreement with The Rapid and improvements to the Downtown Area Shuttle service will prevent an annual rise of about $1.6 million and lower future capital needs by $7 million over a five-year period.

Public Engagement and Timeline

Residents are being encouraged to participate in the budget process through a series of meetings and workshops. The schedule includes:

• Tuesday, May 5: Budget workshop at 9 AM
• Tuesday, May 12: Budget workshop at 10 AM (Committee of the Whole meeting), followed by a public hearing at 7 PM
• Tuesday, May 19: Final deliberation and adoption of the budget (10 AM Committee of the Whole meeting, 2 PM City Commission Meeting)

Residents can make public comment at the May 12 hearing or submit written comments to cityclerk@grcity.us.

Fiscal Year 2027 begins on July 1, 2026.

"I feel very good about our financial position for next year's budget," Washington told reporters.

What Goes Into Your Property Tax

For every dollar collected in property taxes, the city allocates:

• 32 cents to the general fund
• 24 cents to the library fund
• 19 cents to the refuse fund
• 13 cents to the capital refuse fund
• 12 cents to the parks fund

The city expects to bring in $127.4 million in income tax revenue and $19.7 million in property tax revenue in fiscal year 2027, compared to $123.6 million in income taxes and $19.3 million in property taxes during the current fiscal year.

Sources consulted:

• wzzm13.com - Grand Rapids City Manager Mark Washington unveils FY2027 City Budget proposal
• mlive.com - What's in Grand Rapids' proposed $785.4M budget for new fiscal year
• fox17online.com - Grand Rapids City Manager proposes $785.4 million budget