I am sitting in today for Commissioner Robbins.

He will be here shortly.

The weather's presenting a few challenges for individuals.

And Commissioner Knight is um is out and will excuse her absence later.

So I used to be on this committee, so nice to see you all today.

So moved.

And I'll support that.

Mr.

Hills.

Good morning, Commissioners, uh, city colleagues.

This grant allows us to continue uh decreasing the barrier of CPA access, part of the eligibility process to become an MLBs.

You need a certified net worth statement from a CPA.

So this grant will help about 13 companies become micro locals with the city of Grand Rapids.

Questions?

I comment.

Very happy to see this before us and thankful for the community foundation's investment in our community.

I used to be on the Black Legacy Fund committee for the uh community foundation, and it really have seen firsthand their investment in our frontline communities here.

Uh so very thankful for this and very supportive of it.

Great, thank you.

Um, Mr.

Holmes, I have a question.

What's the total investment for that uh for that CPA or that support to obtain it?

It's typically about $750 uh uh interaction well with the company.

So um it does fluctuate depending on a company's revenue and sophistication of uh the majority owner's asset, so it could fluctuate between 500 to 750 dollars.

And you said about 13.

Yeah, if if all of them were about to say 150 mark, it'd be 13 companies.

Wonderful.

Um, all right.

All those in favor?

Aye.

Any opposed?

Motion carries.

Thank you.

Thank you.

Next is a resolution approving an increase of $85,000 to the professional services agreement with Plant Moran for auditing services for fiscal year 2025 for total amount not to exceed 293,490.

So moved.

Support.

Miss Claren.

Uh good morning, Commissioners.

This is simply to increase our contractual authority for that audit contract.

We talked to the spotty about the complexities and challenges we had with going live with our new oracle system.

On top of that, the challenges with the implementer.

So um that uh made an issue for reporting, getting certain tasks done on time.

So we had to be flexible with our auditing staff at Plant Moran to you know come and go until we had stuff available.

As a result, we incurred more costs.

Um when I talked with Plant Moran, they the range of increased cost was between 65 and um 85,000.

So we're just raising that allowable ceiling up to eight, you know, additional 85,000 for this contract.

Thank you.

Questions, Commissioner?

No.

Um then to Miss Claren to confirm for the next fiscal year, we don't expect that additional uh we're gonna no, I don't think it would be this high.

We are gonna go into negotiations soon, um possibly doing a two-year extension.

Um, just because we are still in that transition period with the new new system.

They understand us, so not quite ready to go out to do an RFP, maybe um after this extension we would, but um yeah, that to be you know we're we're talking now.

Okay on that.

So I should have an item within the next month or two.

Okay, thank you.

All those in favor?

Aye.

Any opposed?

Item carries.

Item number three is a resolution authorizing payment to the Grand Rapids Community Foundation in the amount of 173,897 eleven cents to the City of Grand Rapids Affordable Housing Fund.

So moved.

Support, Ms.

Claren.

Uh this this one is just exactly as you stated.

Um the city houses an affordable housing um fund that is external to the city, so we make contributions for it, and it's housed at the community foundation.

Um I did check the total balance and it's up around 1.7 million now.

So um our affordable housing board is probably eager to put a lot of that to work.

So um I I think with this list this budget, um fiscal year 27 budget, we'll be having a lot more of those conversations.

Okay.

Yeah.

Is and then um do you know the last time they met?

I I don't see Ms.

Barron's, but uh I can I can follow up and let you know.

Yeah, thank you.

I mean, I could also probably look on the on our nifty site we have here and the investment we made.

All right, all those in favor?

Aye.

Item carries.

Um next item is uh uh ordinance amending section one of the bud budget ordinance 2025-11 for fiscal year 2026, amendment number five.

So usually we don't have this many amendments.

Oh, sorry.

I'm jumping in support.

I'm jumping out of the gate because as I was gonna say, there is quite a few, but um and problem.

You guys have been through this before where we do freeze budget amendments while we're working on the 20 well on the next budget.

Um so that's one of the reasons everything got sandwiched into this meeting.

So I'll be I'll be brief, but we do have problems.

Yeah, so we do have a couple um grant awards, drug sobriety court, um you know, uh two items out of the 61st district court, another grant out of the clerk's department, um, the Americans with disabilities grant act act grant award, as well as a special election reimbursement for parks and rec.

We have the Sullivan Field uh improvements, um, and then um police we have um in-service training um through the Michaels funding um engineering um appropriating some of that additional state funding to Vital Streets as well as reconstruction of Fuller Avenue uh from Kalamazoo to Boston.

Uh we also have appropriation of um for a bond issue we plan to do this spring related to um the 1500 Scribner to make up that final gap financing.

Um Engineering Department's also appropriating money to the museum uh neighborhood of four million dollars related to work on an elevator uh parks and rec.

They have the master plan update, and then the next few are personnel additions.

Um we did be mindful about what we were adding for personnel additions, ensuring that we had uh sufficient revenue through fees of those individual funds or um cost of service to help cover.

So uh we have uh permanent roster ad of an economic development coordinator as well as an economic development coordinator too uh out of the planning department, uh strategic marketing communications specialist, um, as well as um with the police department.

Uh while this is general fund, we did uh get through the state an additional 1.7 of uh revenue sharing money that's um anticipated.

I did talk to the Department of Treasury of when we expect that revenue supposed to get a check by April or May for that.

So we went ahead and um added these 10 positions, um eight officers to sergeants to again continue to support that community policing model.

Um out of the executive office, we have um money towards the enhanced support pilot program, as well as um arts and culture strategy initiative of 75,000.

Then uh back to parks and rec.

We have improvements at the ice house at Belmont Park, uh, as well as um the item we just talked about, the affordable housing fund transfer, and then on number 20, we have the housing next contract um just for additional work they've had to do related to the ADU task force mainly.

So um that is in total what what what we're all adding.

Thank you for reviewing that.

No problem to to review it all.

We've we're here for that uh for that these matters, so thank you.

Um Commissioner, any questions for Miss Clarendon?

Yeah, a few.

Um first uh the 1.7 million for the public safety trust from from the state.

You said that we can expect that in around spring, April, May.

Yeah, I just I talked to them earlier or last week, and and that's that's the anticipated when the department of treasury is actually gonna execute and get the payments out to municipalities.

So we've been waiting since they adopted the state budget.

Yeah.

Um and that wasn't cut from their 645 million.

Uh so uh with those positions that we added, how much of that 1.7 are we using?

Uh that's gonna take up about three quarters of it.

So as and as you know, that that funding is you know, we'll have about half a million on the table to talk about.

We were gonna maybe start that conversation at our mid-year update, which is the second meeting in um February.

So, yeah, there is another chunk of that money if if we do want to define a use.

There's a requirement for 75% to go towards direct public safety.

Public safety.

Yep.

And then the remaining, which you're saying is about 500,000.

The commission can decide on which community initiatives would be best.

The community okay.

Yeah, we'll we um yeah, we were gonna open up that conversation, but by all means, if you want to start generating ideas, I'm sure city manager would be appreciated.

We've talked about it a lot, especially uh as someone who uh that's worked a lot in Lansing, it's very interesting.

It's sort of magic money, uh like the road money came from cannabis, and then with this, it's like what's the equation, right?

Right, right.

Uh so that's gonna be interesting down the line.

Uh, and also interesting that this was not touched at all.

Yep.

Uh and their uh waste fraud and abuse cutting um what was the other thing?

Oh, and then allocating some speaking of road funding, that was my second question.

Uh allocating how much to vital streets.

Um, so we have not received that vital streets item hang on, I gotta go find it.

Um that was not related to the additional funding we expect to receive.

This is um we receive more gasolate tax than expected, so we want to appropriate it.

So we're gonna appropriate it.

Um the additional money we expect in.

I'm still working with Department of Treasury of where are we gonna receive this?

And and Carden Farrick is has I know has been on top of that as well.

So um I'll I'll make sure I have an answer for that or try to get you more of an answer for when that um funding's coming in and how much and how it's gonna hit our fiscal years.

Uh I'll I'll try to lay that out for our mid-year update.

And do we have an estimate of how much we're thinking for that new road funding as well?

When I did the when I did preliminary estimates, we were thinking maybe five million would hit this year, um, but annualized it would be about 10, maybe 11 million.

But um that was off of really early you know estimates.

So I'm hoping to get something more solid by the time we talk in February.

Yeah, I'm really interested just to a small uh cliff note about uh ideas for road funding.

Um bringing in, you know, specialists uh for who you know really could look at our streets, take a look um at our streets and talk about being more user-friendly, more people centric, um, a better use of our space.

Um I can't think of the name.

It was like a uh it talks about when it snows like this, how we can see Mayor Bandami was just talking about it of how you can see the past that cars and people actually travel more in the snow, and then it leaves these opportunities for a better green space, more you know, so it would be wonderful to get I I think uh someone who really is looking into this to talk about what opportunities for a change we'd have, and I think that would be a um a smart thing to consider um as we look into that additional road funding.

So just an idea and hope we can let the city manager know and my colleagues as well um that that I think that's a good idea to explore.

All right, those are all my thank you so much.

All my questions.

And my question was on the public safety trust fund, but we talked about that.

So all those in favor?

Aye.

Any opposed item carries.

Our last resolution for today is the bid list resolution for January 27, 2026.

Oh moved.

Support.

And this one, if I recall, we kind of just take out.

Yeah, it's just six items today, fairly routine.

Um renewal of our IT support, um, the you know, the SCADA software, things of that nature.

So if you do have any questions by Southwater, the departments are here to answer them.

I don't have any.

All those in favor?

Aye.

Item carries.

Um next is the comptroller's warrant report for the period of December 30th, 2025 through January 12th, 2026, and the amount of 30 million two hundred and ninety-one thousand seven hundred and forty-nine dollars and twenty-six cents and small claims, fourth quarter twenty twenty-five, and monthly travel reports.

Mr.

Comptroller.

Good morning.

So we have three reports here uh this morning.

The first one, the warrant report, uh showing that cash payments are released totaling approximately 30.2 million dollars, which includes uh 5.9 million dollars for employee payroll expense and just over $61,000 for income tax warrants.

Uh in terms of quantity, 204 income tax refunds were issued, and 1,285 uh accounts payable checks uh and electronic payments were issued.

Uh these funds were not issued by the comptroller's office or uh any individuals in the comptroller's office uh and not in accordance with the terms of the city charter.

Uh the second report we have for you this morning is the quarterly small claims report.

This details small claims paid out by the city uh from the fourth calendar quarter uh of last year, a total of 12 small claims were issued, uh totaling 28,771 dollars.

The third report that uh I have here this morning is the monthly uh travel report uh for the December fiscal year date period, so about half the year.

And that report details travel spend by each city department and is showing uh we've spent around 969,000, or about 42 percent uh of the overall uh annual budget.

And those are the three reports that we have this morning.

Thank you.

Noted.

Um received and filed, thank you.

Reminder.

Uh next, our last item for today is the treasurer's report for the period of January 1st, 2026 through January 13th, 2026.

Mr.

Treasurer.

Good morning, commissioners.

With our report today, we just want to point out that um continuing to firm up our uh our opinion and thoughts on the fact that we do have to have an independent Federal Reserve uh for the United States.

That is uh definitely something that has to be maintained.

If that is not maintained, um all bets are off on what's gonna happen because uh obviously the call to push interest rates down below the Fed's target of two percent um would cause major disruption.

Um really, I think what's gonna happen is is we're gonna look at tomorrow's rates uh is the next FOMC meeting, and they're gonna hold it steady.

It's a 90 over 90 percent um likelihood that we won't see a rate cut.

Um various um market participants have been surveyed and they're looking at uh potentially two rate cuts in 2026 and they're saying no rate cuts in 2027.

Um granted there's gonna be a lot of stuff that's gonna change.

We're gonna have a new Fed chairman, Fed Chair, um, as Chair Powell is done in May, and the president you've heard from our president who's been putting forward potential nominees for that role.

Um we're really gonna be paying attention to the fact that we are hoping that that person who's going to be appointed in that role or are brought forward is going for approval is going to be someone who is going to continue with the position of being uh stability and a rock really because uh we don't want to see any shocks to the market right now.

Uh we really don't really see any shocks to interest rates.

Um I think there's there's plenty going on right now with um tariffs being levied really as is a stick as opposed to um is that the correct path we should take and they haven't fully been looked at through the economy and businesses haven't passed on full costs to consumers.

That's something that's going to uh was it was really something that was pushed forward in in the economic club meeting that we had yesterday and listening to one of our present presenters who's saying that hey, as as you're a local manufacturer, you can only absorb price increases due to tariffs for so long because you'll see your margins get squeezed, your profits get squeezed.

Um they can only do it so long they're gonna have to pass on those costs to the consumer.

So we'll see what happens in the in that realm, but I think there's just way too much that's still up in the air right now.

We want somebody who is very um consistent, stable that we can look to for sage advice when it comes to our economy and the Fed outlook.

Um right now the key and the key economic points we're looking at is inflation is still in the upper two percent range.

Um the Fed's target is to get that to two percent.

The labor market is still cooling, um unemployment rate is 4.4 percent.

Uh it ticked up to 4.5% recently in the most recent news since this report was written.

Um, but we're keeping our eye on those things.

Our focus right now is gonna be looking at at where we land in terms of our budget.

Uh our budget is gonna be signaling to us what bond issues are gonna be brought forward, how we're gonna look at drawdown schedules and invest those funds, but also trying to get a deeper dive uh and deeper look into what the city is looking to do with the reserve funds that we have.

Um we currently have six hundred million dollars of reserve funds, and we're gonna be looking to see if we're gonna start spending some of those down and when do we need them?

Because then that sets our portfolio up a little bit differently.

We'll have to hold more money short term as opposed to placing it out longer.

So that's our take on looking at the next budget cycle as we go through uh critical meetings on that as to where we are looking to spend our monies.

Because if we're gonna start spending our monies in the next two or three years, we're not gonna be placing our money out there seven to ten years.

We're gonna be pulling more money in short and riding it, getting ready so that we are we have the funds there for liquidity to cover what the city needs.

Um with that our portfolio right now stands at 711 million, which is both reserve and bond funds, and we're earning 3.36%.

Great.

Thank you, Mr.

Treasurer.

Commissioner, any questions for the treasurer?

Hearing none, that report is received and filed, and with that, we are adjourned at um 848.

Thank you.