Good morning.

The time is now 8 30, and we're gonna go ahead and call our fiscal committee committee meeting to order.

Good morning, colleagues.

Nice to see everyone.

First uh resolution is one accepting a grant award in the amount of $135,000 from the Federal Emergency Management Agency known as FEMA for Indian Mill Creek Hazard Mitigation Projects.

So moved.

Support.

Moved and supported, Mr.

Tabor.

Uh good morning, Commissioners, colleagues.

Yes, uh, excited to be up here today to present uh this option for accepting uh $135,000 grant from FEMA for uh Indian Mill Creek hazard mitigation projects.

Uh this is a grant I submitted for the uh engineering review study and public engagement with uh neighbors along the Indian Mill Creek for hazard mitigation projects.

Uh there will be some engineering design work uh reviewing the hydrology of the area, like how it rain and stormwater interacts with the neighborhoods, and then also hydraulic study of Indian Mill Creek itself, how it flows, how um Indian Mill Creek is actually one of our flashiest uh streams in the city, so it it rises pretty quick during heavy rain events.

So doing the engineering analysis and studies there, but uh this also includes a public engagement portion where we plan on interviewing residents in the surrounding neighborhoods uh to see how flooding or the potential flooding uh impacts their lives.

So there's both a both an engineering component and an engagement component, and uh really the the outcomes will be hopefully developing some some projects for the area to help mitigate flooding scenarios and high water situations.

So uh yeah, seeking your support for this.

Thank you.

Uh questions for Mr.

Tabor colleagues.

Hearing and seeing none, all those in favor?

Aye.

Any opposed item the resolution carries.

Thank you.

Uh resolution number two is one authorizing an agreement to execute and deliver the continuing disclosure certificate, CDC in connection with the Knapps Corner Drain, Drainage District Drain Bonds series 2026, uh, which is a general obligation limited tax.

Do you have a motion?

So moved.

Support and supported.

Mr.

Woods.

Good morning, commissioners and colleagues.

Uh the Knapp Corner Drain District is moving forward with a 19.75 million uh flood mitigation project to reduce flooding risk uh by creating an outlet for the detention bond.

Uh 16.2 million of that will be financed through bonds that the city will repay under previously approved agreements and cost appropriate appropriates.

Uh other project partners are contributing funding including two million from Kent County.

Uh 1.5 million from the Kent County Road Commission and 5,000 from Grand Rapids Township, reducing the amount that must be bonded.

Uh this does not increase the city's financial liability.

And it is inspect expected to save approximately 2.14 million in interest costs by allowing the bonds to be sold under more favorable terms.

Thank you so much.

This is the one that keeps on giving.

Um questions, colleagues, about this and the companion item.

Hearing and seeing none.

All those in favor?

Aye.

Any opposed?

Resolution carries.

Thank you.

Um, next is a resolution authorizing additional payment to Kent County Drain Commissioner.

Uh fiscal year 2026 maintenance maintenance assessments for Naps Corner Drain in the amount of 144,589 dollars and three cents for the pump and hauling operations.

Do I have a motion?

So moved.

Support.

Moved and supported.

Again, this was a companion and just anything you want to add here.

So I started the morning with my my good agenda item, and then this here we are with uh Nap's corner.

This is this is this is for the the pumping and hauling of the excess water from the detention pond.

Uh we made an estimate uh uh last year, but due to the the wetter spring, there was pretty continuous pumping and hauling of water uh basically all winter to keep that pond down low uh so there wouldn't be any infrastructure affected and uh homes flooded.

So this is a request for seeking 144,589,000 dollars and three cents for work already completed by the drain commissioner to pumping all that water to make sure the pond level remained an appropriate level.

And Commissioner Yasassi, if I could just add for the previous item and this item, um I've seen a couple articles about this and why are we why are they still draining it?

But it's the design of the pond basically failed.

It was supposed to be an infiltration type situation, and that's not infiltrating.

So that's just for the good of the public.

That's why, you know, we are working on the fix with the previous item, but in the meantime, we still have to haul water.

Right.

And the construction operations of the the nap corner pond solution have has already started.

There's been some tree clearing and various activities like prep work, uh heavy construction, actual excavation and pipe is anticipated start this fall.

Uh I'm anticipating hopefully wrapping up this pumping and hauling fall of 27 based on construction schedule.

So hopefully later at the end of the tunnel, I would like this, you know, $500,000 plus back to my budget for more productive things, but here we are.

Yes.

And that's a good note too.

This was the solution because of that failure.

This has been, I mean, again, widely communicated.

I think since early two thousand.

Yes, I was gonna say, it's been it's I've been here for six years, and we were talking about it that we have been talking about it for a moment.

Um, and then you would also see that savings for the pumping and hauling in the future.

So good good comments to note.

Um, questions, colleagues?

No, hearing and seeing none.

Um, all those in favor, aye.

Any opposed?

Resolution carries.

Thanks so much.

Thank you.

Um item number four is a notice of intent to issue water supply system revenue bonds.

Do I need a motion for that note?

So moved.

Support okay, moved in.

Just in case.

Mr.

Frog, we're back.

Good morning, commissioners.

Um, for you is a notice of intents to issue water supply revenue bonds in the amount not to exceed 21.05 million.

We don't anticipate issuing for that full 21 million.

The bids that we've received back so far are pointing are pointing more towards a total cost of 19 million, but that 21 million reflects the full amount that the state would allow us to borrow.

Um, roughly a quarter of those funds, so about five million would be used on leadline replacement throughout the city of Grand Rapids, and the remainder would be used across nine different water main replacement infrastructure projects that are done in conjunction with vital streets.

Um, so this series would be issued through the Michigan Finance Authority as part of the drinking water state revolving fund or DWSRF, as you may have heard it.

Um that comes with potential principal forgiveness of $5.39 million dollars.

So if we were to borrow 19 million, they might forgive up to 5.39 million of that amount.

It would be a 20-year loan with favorable interest rate of two percent.

Um, so barring any complications with this, we should be closing on the bond issuance in late August.

Questions.

Thank you for that uh overview.

All those in favor, aye, any opposed item carries.

Thanks so much.

Um, item number five is a resolution authorizing a budget substitution in the amount of 700,000 for the SCADA.

Is that what is it?

Is that an acronym or is am I saying that right?

It's uh it's an acronym.

Is it an acronym?

SCADA.

Okay, I was like, I think this is something.

Uh a SCADA, I just want to make sure I'm saying it the right way.

So nobody's making fun of me when I'm saying it the wrong way.

So a SCADA modernization project.

Uh do we have a motion?

So move.

Moved and supported.

Mr.

It's again.

Good morning, commissioners and colleagues again.

Uh due to the increased cost of materials in the SCADA modernization project.

Uh we're seeking uh a $700,000 uh budget substitution.

Um it consists of $350,000 from the sewer replacement fund infrastructure investment project and $350,000 from the water replacement fund infrastructure investment project.

Uh because this budget substitution utilizes leftover funds from other capital projects.

Uh there will be no impact to water or sewers uh fund balance.

Okay, look at you just gave us some more good news, so um questions, colleagues on this one.

Um, chair I do, yes.

Um, I uh first of all, thank you for noting that the these projects will not be uh impacting the budget, particularly in that they're continuing.

But I don't know if most people understand what SCADA is and how important is to making sure that we have clean, fresh drinking water coming out of our taps.

So if you want to give like a 30-second um description, that would be really great.

So for both water and sewer, we have uh a program that monitors the collection system and the distribution distribution system as well as running the entire water treatment plant and wastewater plant they all come into one hub and allow a small group of people to operate the entire city keep water moving both into our wastewater plant and out to the public.

Very critical infrastructure so um you got us over a barrel because we have to say yes.

All those in favor aye aye any opposed resolution carries item thank you so much item number six is the bid list resolution for May 12th 2026.

So moved support uh Miss Claren anything that you want to add here um just uh we have about 10 items this morning on the in the packet it starts on page 19 if there are any questions myself or the uh staff are here to answer great thank you colleagues questions for Ms.

Claren or any of the staff I just want to highlight that it looks like we're investing in some more equipment for our parks and recreation and our water facilities so I really appreciate that thought um and just always since we're in budget season continuing to look at where the budget is being spent so that we make sure our departments get what they need without um necessarily purchasing things we don't need I guess that was a pretty obvious thing to say but um and it's good to see that Comprenews being continued to be utilized by our IT departments.

Did I call the question on that one?

All those in favor aye any opposed that item carries next we'll turn to our comp troller's warrant report for the period of April 14 2026 through April 27 2026 and the amount of 31 million twelve thousand seven hundred and seventy one dollars ninety six cents and the monthly travel report and today we have our deputy comproller Kirkland with us thank you good morning everyone so as stated uh our total cash payments released for the period was a little more than 31 million which include uh roughly six point five million in payroll one point two one point two million rounded up in income tax reward the number of income tax returns that were refunded were 10 10,221 and accounts payable tax issues was 1,333 as the warrant uh report control report thanks so much nice to see you thank you we usually only see in the audience yes looking looking just fabulous um so welcome today um so that's received in file next is our other fabulous person um our treasurer our treasurer's report for the period of april 15 2026 through april twenty eighth twenty twenty six mr treasurer good morning commissioners morning uh so just uh 8 30 this morning breaking news our CPI went up to 3.8% which means inflation is rising so things are sticky right now um it was expected to be 3.7 it came in at 3.8 so obviously we see this at the grocery store at the gas pump uh in so many different areas um where we're looking at right now though the Fed kept the rates interest rates the same so we're still at the 3.5% to 3.75% some takeaways from that meeting were that the rates remain elevated um the Fed is seeking additional evidence but inflation isn't easing it's going the opposite way um policy still remains to be cautious and flexible uh this Friday is the last uh official day of Fed chair Jerome Powell's tenure however the new Fed chair has not been confirmed yet so once that happens we'll have a new Fed chair but de facto uh Fed chair Powell would stay on in this case until a new chair is appointed or confirmed.

What we're looking at for inflation, obviously, is that the primary drivers are going to be your energy and fuel costs, transportation expenses, construction materials, and certain contracted services.

So we're gonna find this pressure all throughout our budget, all throughout the work that we're doing.

And you know, that's good that we do three-year contracts because we can get our pricing set, but anything that's renewing right now is gonna probably be a challenge that we have to be very cautious of.

We really have to monitor that and where that that leads.

When we look at the city's investment portfolio, though, we I'm gonna try to make this a little bit of a sunnier disposition.

Um we have $668 million dollars, we're earning a very good interest rate on those monies, at it's north of 3.29%.

But what we have done is we're actually starting to move some of our money out longer term on the yield curve because the interest rate curve is finally starting to take more of a normal shape.

So what that does is allow us to start placing money out there.

We've been uh between myself, uh Phil on Groyer, and administrative analyst too, and Mr.

Levi Bolt, our investment officer, we're looking to place those monies out.

We've we're filling out our schedule for all of FY27 to cover all of our major items that are like payroll and debt service, that all of those things are funded that they're matching investments that will come due when those those bills are due, and that's part of the job that we do before we actually look at what reserve money do we have that we can put out in FY28, 29, 30, 31 to actually earn a higher interest rate for us.

And so that's the work that we're doing right now and concentrating on.

But again, I I want to be very um clear that you're in the middle of budget right now, that will get passed, but the departments have to really focus on you know things like the contract renewals, doing the RFPs that they should be doing to make sure we're getting the best service at the lowest possible price.

That we ourselves are looking at uh income tax withholding.

Are there any you know?

This is where uh Miss Claren will be working with our income tax administrator to find out are our income taxes taking a dip?

Are we seeing unemployment go up?

What's what's happening?

Because we need to be ears to the ground on some of the stuff like consumer activity.

Are we seeing development and permit activity start to pull back?

Because as these things, as as other businesses are challenged, they're not gonna be willing to invest as much.

They might be holding back their money and not wanting to spend it if they're looking at challenges in their future coming up.

So we have to be very attuned to any of those types of changes from the various departments we have that are connected to that work.

So if we're starting to see these headwinds of challenges, we really should be having more poignant conversations with various departments to say, hey, listen, are you seeing a dip in any of this related activity?

And so we need to have somebody throw the flag up and say, Hey, uh, we're we're noticing a two or three month dip and building permits.

That might trigger something that we might have to say, hey.

Let's engage some of our other partners.

Um, GVSU I know has provided us some information.

Uh Dr.

Paul Isley's provided information on local economy and others.

Um, but we want to be very uh intentional to keep that our ears to the ground for those types of things because that's kind of like the harbinger to what's gonna follow for our organization because we're a follower.

So with that, that's our report for today.

Thank you, Mr.

Treasurer.

With that, may I ask a question?

Sure.

Um, I'm just curious.

Looking at this, and is your forecasting out?

Um, considering the soccer stadium bonds that we are paying and the hotel motel tax that then funds that and helps us be able to do that.

If we're looking at, I know it's a little early because with these things are just opening, but um, what would be some considerations we would want to be paying attention to if we're gonna be having any impacts from that?

Well, Miss Claren and the powers that be that set up that debt financing have waterfalls in place that it's not coming out of the city's coffers, right?

Um, I'm doing everything I can because the MMTA and the APT USNC, which are treasurer's conferences, are gonna be in town this the second week of August.

So we're gonna help contribute to the hotel motel tax.

Okay, but it you know it the county is very strong and the hotel motel tax revenue is very strong.

I think if anything, think of it this way maybe more people are going to be planning staycations where somebody from the corners of the county come downtown to spend at the hotel motel because they're gonna not only have dinner but they're gonna go to a concert or maybe a playoff hockey game because Griffins are in the next round starting next week.

And that's a shout out to my my friend uh Brad Thompson who's the equipment manager.

The whole idea is that you the staycations might continue to fund that hotel motel tax as people start to evaluate five dollars a gallon or four seventy five a gallon it's a lot of money for me to drive from here up to far western UP where my house is and if we're taking multiple cars that you're talking 200 300 dollars you know tra just for gas so you know I think that a lot of people are going to probably play do the staycations and look at what we have around here because we've added all these great things going on right we've got those things so I'm I'm thinking there's gonna be a lot of people that are gonna look at the the concert lineup that's there from the sports lineup to the museum activity for the kids and a lot of people are going to focus on staycations.

Yeah and I I would just add to that with the um you know the waterfall we have in place so we have the you know besides you know them give us the hotel motel taxes secure the debt service on those bonds we have you know kind of like the rainy day fund that's that would pay debt service for about I think we calculated about a year and a half.

What I'm more worried about is that pandemic situation.

That's why that's when I could see that waterfall kicking into place because we did go through the recession and um you know I don't think our hotels took a huge hit but when we looked at the numbers of you know that time period when we were setting up this waterfall that time period versus versus COVID you know we were more worried about you know that that kind of situation which is which is where I could see that coming into into play but you know the treasurer's right I think I think we are very strong in West Michigan diversified and um you know we're making ourselves a you know come see what we're doing you know as we develop the river and all these all these cool event places so yeah all right with that we will go ahead and adjourn at 8 51 thank you all