Grand Rapids commission adopts FY27 budget, reduces city millage rate

The Grand Rapids City Commission voted to adopt the fiscal year 2027 budget and approved a related FY2026 amendment after public comment and discussion on May 21. The adopted budget establishes appropriations for the fiscal year beginning July 1, 2026, and the commission approved a proposed total city millage of 8.7511 mills, a decrease of 0.1076 mills from the prior year.

City Manager (unnamed in the transcript) said the plan ‘‘accomplishes a lot’’ and that it preserves core services while making targeted investments. Commissioners repeatedly described the budget as fiscally conservative and aimed at sustaining city services and capital projects while advancing neighborhood investments.

Commissioner Kilgore highlighted neighborhood-directed spending through the Third Ward Equity Fund, noting allocations the commission discussed this session that include $200,000 for traffic and pedestrian safety improvements in the ward, $50,000 in local matching funds for an RX Kids initiative, and $250,000 for youth and violence-prevention programming, including support for Grow 1000.

Commissioner Beljevic outlined the larger FY2026 amendment the commission approved alongside the FY27 ordinance. That amendment recognizes debt-service budgets tied to recent bond sales — the transcript records $120,270,000 issued in bonds for the soccer stadium and amphitheater — and requests recognizing approximately $6,698,555.77 in debt-service appropriations. The amendment also includes a transfer of $7 million into the city’s Budget Stabilization Fund, increasing the fund balance toward a reported target (the transcript records an increase to $25,798,835). The commission approved that amendment by roll call vote.

Votes at a glance: - Ordinance adopting the FY27 city budget: adopted (roll-call vote; recorded affirmative votes by the clerk; motion carried; immediate effect requested). Effective date for appropriations begins July 1, 2026. - Ordinance amending the FY2026 budget (Amendment No. 7): adopted (roll-call vote). The amendment recognizes multiple project revenue/expenditure changes, bond-related debt-service appropriations and a $7 million transfer to the Budget Stabilization Fund.

City staff and commissioners emphasized implementation and oversight in closing remarks. City Manager noted the budget is structured with reserves and a goal of fiscal sustainability; he also confirmed the city will begin implementing approved items on July 1. The manager also said staffing and operational matters tied to the budget — including questions about DASH transit and future capital work — will continue to be monitored and revisited as needed.

The commission approved the two ordinances and adjourned following additional public comment and commissioner closing remarks.