Grand Rapids City Commission Fiscal Committee Meeting - August 26, 2025

The Grand Rapids City Commission Fiscal Committee met on August 26, 2025, to consider several resolutions, receive briefings, and review financial reports. The meeting included approval of a grant reimbursement, a drone-based parking data collection expenditure, a budget ordinance amendment with multiple funding adjustments, a bid list, a briefing on the FY2026 internal audit plan, and reports from the comptroller and treasurer. All items were approved unanimously.

Resolutions

• Resolution 1 - GRCC HETA Grant Reimbursement: Approved $81,044.20 in grant reimbursement to Grand Rapids Community College's Higher Education Television Authority (HETA) for equipment purchases related to PEG access and communications. (Moved and supported; voice vote with all ayes.)
• Resolution 2 - Drone-Based Parking Data Collection: Authorized expenditures up to $30,000 for drone-based parking data collection for on-street and surface parking occupancy over approximately three weeks. This action was brought forward under the surveillance equipment policy (Administrative Policy 15-03). Jessica Smith, Mobile GR director, presented. Public comment had been received previously. (Motion and voice vote; all ayes.)
• Resolution 3 - Budget Ordinance Amendment No. 1 (FY2026): Amended the budget ordinance for Fiscal Year 2026 to establish appropriations for debt service on soccer stadium and Ample Theater bonds ($5.2 million from capital reserve fund, funded by Kent County hotel levy increase from 5% to 8%); police department generator replacement ($117,000 from federal forfeitures fund); Parks and Recreation environmental justice grant ($500,000); Roosevelt Park and Plaza grant ($2.5 million); 61st District Court drug and sobriety court ($38,000); Office of Oversight and Public Accountability Community-Based Violence Intervention and Prevention Grant ($2 million, plus one grant-funded administrative analyst position); 2020 COPS Hiring Program grant final year ($200,000 grant with $449,000 local match); and Executive Office city commission meeting streaming/indexing/captioning system (full-year funding for a system procured during budget preparation). Luke Hanfield from the Executive Department demonstrated the new video indexing and transcript feature for commission meetings. Discussion included clarification that bond payments come from the Kent County hotel tax, not city income tax, but that the bonds are against the city's full faith and credit. The contingent balance remained unchanged at $1.5 million. (Motion and voice vote; all ayes.)
• Resolution 4 - Bid List for August 26, 2025: Approved routine bid items as listed in the agenda package starting on page 29. (Motion and voice vote; all ayes.)

Briefing: FY2026 Internal Audit Plan

• The deputy comptroller, Desri Kirkland, and internal auditor, Erica Bills, presented the FY2026 internal audit plan. The plan was developed based on input from city leaders (30% response rate), own observations, and best practices from GFOA and ALGA. A risk assessment scoring matrix (impact and likelihood on financial, operational, ethical/compliance, and reputation) prioritized three primary projects: (1) review of PCARD (purchase card) policy and usage, (2) review of travel policy and reimbursements, and (3) review of Mobile GR parking agreements with DDA, convention/arena authority, and county for revenue share accuracy. Additionally, annual audits include petty cash, inventory, account code, payroll, and financial system user audits. Post-audit reports will be published on the city website. Commissioner Robbins thanked the team for their work. Erica Bills noted plans to increase department response rates through presentations and relationship-building. The plan is a living document, with potential additions (e.g., a fire department process review requested due to staffing changes).

Reports

• Comptroller's Warrant Report (Period July 22 - August 11, 2025): Total cash payments of $48,170,885.79 were released, including $5.7 million for payroll and approximately $320,000 for income tax warrants. Issued 1,577 income tax refunds and 1,875 accounts payable checks/electronic payments. Comptroller noted that the report contained additional information not authored by him; he has requested clarification from the interim city attorney. The FY2026 year-to-date travel report was also submitted, showing $1.9 million spent on a $3.5 million budget (56% utilization). The report was received and filed.
• Treasurer's Report (Period July 31 - August 11, 2025): Levi Bolt, investment officer, reported that 94% of summer property taxes have been collected, with calculations for capture districts underway. Work continues on Oracle implementation (SIMPRO module) for investment accounting. Economic outlook noted warning signs from tariffs: increased producer prices not yet fully passed to consumers, potential for de-anchoring inflation expectations, and a risk of recession. Michigan is currently treading water. Short-term interest rates are expected to be cut by 0.25% in September (83% market consensus). The city's investment portfolio stands at $971 million, earning 3.63%. The report was received and filed.

Key Outcomes

• All four resolutions were approved unanimously by voice vote with no opposition.
• The FY2026 internal audit plan was presented and acknowledged; no formal vote required.
• The comptroller's warrant and treasurer's reports were received and filed.
• The meeting adjourned at 9:02 AM.