City manager’s midyear briefing flags federal grant risk, pension funding update and a contested land‑bank governance decision

Grand Rapids city officials delivered a midyear financial and operational update Feb. 25 that combined a cautious economic outlook with several follow-up actions for commissioners.

Deputy Chief Financial Officer Scott Sadin told commissioners the city currently projects a modest positive general‑fund variance of roughly $3.1 million for FY25 but warned of mounting economic uncertainty. Sadin and City Manager staff emphasized three cross-cutting risks: slower national growth, the potential for reduced federal grant funding, and rising construction and labor costs. He urged measured use of reserves and described the FY26 planning posture as a “maintenance” budget focused on core services and limited new spending.

Sadin briefed the commission that the city has about $48.5 million in active grant applications pending and that historically the city has received roughly $12–13 million annually in federal grants (excluding COVID‑era ARPA funds). He noted the city holds $34 million in unspent ARPA cash in hand and that the city is tracking several time‑sensitive capital projects that rely on reimbursements or external funding.

Pension and retiree‑health update Actuarial consultant Jeff Thibault of Gabriel Roeder Smith summarized the city’s most recent valuations. The General Retirement System was 77.5% funded as of the latest valuation; the Police & Fire system was about 75% funded. Thibault said these levels are in line with many…