Good morning.

The time is now 8 30, so we can go ahead and call our fiscal committee meeting to order.

Good morning, colleagues.

We have just a few resolutions.

So the first is one recognizing be creative for kids as a local civic organization.

So moved.

Support.

Moved and supported, Mr.

City Attorney.

I'm gonna guess you're taking this one.

Sure.

I don't see a representative here, but we have been in contact with the organization.

Uh we've done the legal due diligence to make sure that they are up to speed with all their state filings, and uh it would be in order for the commission to approve and recognize them as a local civic organization.

Thank you.

Um questions, colleagues for Mr.

Strong.

Uh yes.

So uh be creative.

Uh yes, thank you, ma'am.

Chair.

Um be creative.

Is it for the arts or what what service to community?

Uh what's their service to community?

I'll have to refer back to some of the attached materials, and it might take me just a moment.

Maybe we could circle back.

Yeah, let's circle.

So we can table it.

Is that this table to the end of this meeting?

Sure.

Okay.

Thank you.

Thanks so much.

Yeah, no problem.

Um, all right, item, so we're gonna put that one on pause.

Item number two is a resolution authorizing an amendment to the lease agreement between the county of Kent and the City of Grand Rapids for the Kent County Court Administration building at 180 Ottawa Avenue Northwest Grand Rapids 49503.

Do I have a motion?

So moved.

Support.

Moved and supported.

Hello.

Good morning, everybody.

Good morning, everybody.

Phil Wheeler, uh, for the facilities and fleet management department.

Uh, what you have before you this morning is a resolution authorizing an amendment to the lease agreement between the city and Kent County for the court administration building.

Um staff and staff representatives from the city and county are negotiating the terms of a renewed maintenance agreement um for the courthouse building, which in uh houses the uh enforcement division of the city attorney's office and the 61st district court.

Uh the original lease agreement was entered into in 1998 to facilitate the construction of the the courthouse facility, and the building opened in 2001.

Uh the debt service on the outstanding bonds will be paid in full on June 1st, at which time the city's tenant space will transfer to an ownership stake at the current occupancy share.

Uh so this temporary renewal of the existing agreement will not is not to exceed December 31st, 2026, and will allow us to bridge the ownership transfer and the finalization of a longer term operating agreement.

Thank you, Mr.

Wheeler.

Questions, colleagues on this item.

Hearing and seeing none.

All those in favor?

Aye.

Any opposed?

Item carries.

Thanks so much.

Thank you.

Um I'm gonna turn it back over to Mr.

Strom.

I probably should have said, like, do we have a motion to table?

But forgive me, colleagues.

I think at least the two of us were down for it.

So let's go back to item number one, which is a resolution recognizing be creative for kids as a local civic organization.

And I'll just call again for a motion just to make it official.

So moved.

Support.

It's moved and supported again, Mr.

Strom.

Thank you.

And I don't know if uh oh yes, if you'd like to come.

If you'd like to come to the podium, ma'am.

Randy Alloway, I believe, is a representative.

Yes, correct.

Welcome.

Good morning, everyone.

Good morning.

Good morning.

Sorry, I had a I mean it's not unexpected emergency this morning.

So I apologize for my oh, you're fine.

Are there any questions that you guys have?

If you could tell us a little bit about the organization and um uh my colleague here, Commissioner Kilgore had asked a question, so you're it it it worked out.

Okay, well, first, of course, my name is Brandy Alloway.

Um I'm a third world resident here, born and raised in Grappis, Michigan.

I'm a Krista High School graduate, a mission alumni.

Um I have my degree in uh communication, I'm a mom of one on my spare time.

I like to bake and make treats.

So basically, the how this all came about is I had a for-profit business many years ago, caught well, not many years ago, kind of still now, called Be Creative for Be Creative Confections, and so I made chocolate cover treats there.

So chocolate covered strawberries, rice crispy trees, you name it, right?

For all type of organizations, and then I kind of got um involved into the nonprofit field.

So um, you may know one of my close friends, um, Ari Way.

So she has the Black Book Exchange box.

So I got into the nonprofit field, just being close with her.

Um, and so I said, how can I, you know, take my confectioner um hobbies, you know, into the nonprofit world.

So that's where be creative um confections kind of took a pivot to be creative for keys.

And so we're in local nonprofit.

We started in 2024, we partnered with um three local foster care agencies right now.

So Willspring Luther, um Samaritas, and Bethany Christian services where I make birthday cakes for children in foster care.

So yeah, thank you so much for that overview.

And um, she's third word resident commissioner, so you know that's our third word commissioner that asks.

Speaking my language with food.

Great.

Do you have any follow-up questions?

That's all, thank you.

All right, thank you, Miss Aloway, for coming.

Um so we'll vote on that.

All those in favor, aye.

Any opposed?

That item carries.

Thanks for coming, and you can feel free to go about your day.

So it's passed.

Um item number three is the ordinance amending section one of the budget ordinance two thousand twenty-six-11 for fiscal year two thousand twenty-six amendment number seven.

Do you have a motion?

So moved.

Support.

Moved in support of Ms.

Claren.

Anything you'd like to uh well, it's well, not anything.

But sorry, everything.

Uh, it's quite a list this morning just because we do do a freeze during when the budget office has to focus on formulation of the budget.

So I will go through it, but I'll be brief.

Um, and number one is just appropriating uh donation amount, um 565,000 related to the Grand River Edges Trail.

Uh we have another grant with the police, the Michaels funding for the narcotics team task force.

Uh we're appropriating some interest related to the Scribner bond.

So uh when we we issue bonds, those proceeds sit there in our city treasure.

Um just just for the good public, our city treasure invests that and it's it's basically we do estimate a certain amount of interest for when we when we know how much we we need to build Scribner or work on Scribner, but um you know sometimes John exceeds the mark, and we can enhance certain areas of the project.

So this uh 785,000 is great, we're putting that to use.

Um we have a water main replacement and lefting well, um, that's with vital streets.

We also have the reconstruction at Lion Square, uh, snowmelt fund.

Um we're uh pulling from fund balance for um to accommodate some increased utility costs.

Um, and then we have debt service payments um related to the amplitude soccer stadium and the parking structure at the amplitheater.

Uh, when we formulated the budget last year, we had not yet priced all the bonds, so we didn't have that appropriation in place to um, you know, pay debt service.

So going forward, we shouldn't see this item recur because now that we priced, we know the expected debt service when to pay out.

So uh this is just an appropriation related to to that payment, um, just as a reminder, uh it's secured through the um we receive hotel motel tax from the county that secures that debt service.

Um, and then uh we have 61st district court, the operation drive program, uh, parks and rec, uh just capital appropriations for some of the projects they have.

I believe it was um Camelot Park, and yeah, I believe that's the project.

Uh and then um we also have another appropriation from them for uh it looks like forestry related things.

Um we have the cemetery operations appropriation.

Uh we have a request from the public library related to their strategic planning.

They're pulling uh 66,000 from their fund balance.

Um they're also doing um some patron printing, and uh there's a historical commission appropriation.

Um looks like related to intern services, and then uh number 15, uh the oracle implementation project.

This 41,000 is basically um the rest of ARPA money we want to get out the door.

Um so we wanted to appropriate that towards expenses with the ERP.

Um, still within that.

I don't know if you guys remember when we introduced the budget.

I gave the most up-to-date budget amount.

I believe we're around 9.4 million of ARPA went towards our ERP.

Uh primary cable purchase out of street lighting and the budget stabilization fund, seven million dollars.

This was discussed during um, you know, budget formulation and with the work sessions.

This is getting that appropriation in place to pay out, and then uh the Michigan Justice Training Fund, uh $55,000, and this is for the 2026 law enforcement um distribution, and it's to support training efforts.

Our contingent balance remains unchanged at uh 1.5 million.

Um, and that's it.

If there's any questions, thank you.

Commissioner.

Thank you, madam chair.

Uh, so Miss Claren, thank you so much for that overview.

I do want to get into the weeds just a little bit for the uh seven million dollar added to our rainy day fund, and you had a really good um write-up for us internally on what that means, and then we also received a letter from uh some of in the business community that were sort of uh I believe confusing that we needed that seven million to balance the budget.

And so if I'm correct, I'm seeing the seven million dollars added as this is an awesome opportunity to be prudent uh with our budget, as we see a pretty sort of uh unstable forecast uh fiscally, but I'm sure you can say this in a much more direct uh way.

So if you could just give an overview on what this seven million is for, I'm very supportive of it, and I think it'll be good for community to know.

Yeah, the seven million isn't needed to balance our budget.

Um this is a great one-time use of money where we can contribute towards the budget stabilization fund, um, and we still keep the money in house, so it's a great use of general fund fund balance and then putting it for a designated use.

Um we do have an unstable forecast.

Our our city treasures talked to us, especially lately with um uncertainty around uh, you know, we've been talking about fuel a lot this week.

Um we know that the um, you know, if prices remain where they're at, we're gonna need um, you know, besides our contingent balance, we have 1.5 million and our fleet operations keeps contingent balance.

Well, what if all that runs out?

This is another place we can tap, and it's just putting that money aside uh to put the money to use, it requires a two-thirds vote of the commit city commission, and it's it has to be towards core operations.

So it it is a um policy we put in place coming out of the Great Recession because when we went through the Great Recession, we eliminated a quarter of our workforce, and we didn't have this kind of rainy day fund or or something to do to, you know, wait out.

We we had discussions with the commission at the time during COVID, if uh we did see our income tax plummet, this would have been a great um tool to use.

We were, you know, this close, but uh we were able to because we built up these reserves in the general fund, we didn't necessarily have to go tap that um budget stabilization fund at the time, but it is it it is something to um be proud of as a commission, and uh it's a great tool to have in case we ever do run into trouble.

So um our we also talk about a lot with our rating agencies.

I'm gonna be talking to um rating agencies in June about our issuance for the fire training center and some remaining projects related to Scribner.

But um, they do um like to see that we stay in compliance with that fiscal policy, but um, you know, we have other municipalities call us about oh, you know, can we see a copy of your policy?

It's on the website, but like um, you know, just just it is it is a really good thing to have, you know, just for our our financial stability, so yeah, I think it comes from right, it's coming from a surplus, right?

So it's meaning that there were good sound decisions made by this commission and our predecessors to get to this point.

Absolutely, and then it's keeping us in that point.

So thank you for that clarification, and I'm happy to support it.

Great.

Thank you, Commissioner.

I'll also say, um, right now, so there is in the fiscal policy a percentage that uh we say we we want to be at, which is the 10%, right?

Um, and that move of seven million, should it get approved, would be put it at 12%.

Correct.

Correct.

So I just want to I agree with your comments about Ms.

Claren's write-up.

Um, I think you know, my predecessor was here during that time, and so probably got to hear a little bit more directly from her.

You know, what does that look like when you're have a workforce, especially when you think about the people who are doing this every single day?

So I think it is um sound policy as well.

So I'll echo your sentiments, Commissioner.

Um, any other questions about item number three?

Yeah, I'm just glad that we had this discussion because I was I would have brought it up as well.

So um uh so just for clarity's sake and for everyone watching that what we're doing is we're attributing this to though to the 26 budget, not to the 20 budget that we're currently discussing.

So, yeah, it has nothing to do with balancing the 27 budget.

We're doing it within fiscal year 26.

So, um, so that yeah, once this gets approved, um, you know, it's uh it'll be part of cons.

Well no, it's an ordinance, so it'd be voted on at the afternoon meeting.

We'll we'll make that transaction within this fiscal year.

So right after the meeting, usually, thank you.

And that's why we typically are voting on the budget in May.

Can some people say why don't you push it out to June or things like that?

That's another sort of reminder because there are all a number of actions that need to occur during uh you know end of May into June so that we can be ready to go for fiscal year July one.

Yes.

All right, um, I'm gonna call the question on this.

Oh, yes, Mr.

Treasurer.

Um, I just wanted to add something that I really resonated to me when I was listening to Miss Claren talk about this seven million dollars, realize that it's it's our savings account basically, right?

So we're moving it into that stabilization fund, but in order to tap that, we have to come back to the commission, and that's a pretty strong vote at two-thirds vote.

So we have to be able to we're this is gonna allow us the flexibility that if we're hitting some major issues, we're having the communication with you, we're going out and saying we've done all this work, and this is the source that we have to use.

So it really puts um a really great focus of financial prudence right in the commission's hands by putting the money here, and I I commend our work to really get that refreshed and added to that stabilization fund because we we are seeing some headwinds of maybe some issues in the future, and it's great to be able to have that in that position.

Yeah, absolutely.

Um, we've seen a lot of leading and lagging indicators, and um, you know, we we've been talking about that here.

So thank you for those comments.

All those in favor?

Aye.

Any opposed, that item carries.

Item number four is our bid list resolution for May 19, 2026.

Do you have a motion?

So moved, support.

Ms.

Claren.

Uh just a few items this morning.

Um, if there are any questions myself, um our one of our buyers isn't that Daniel is here, uh, as well as the department directors.

If you do have questions.

Great.

Questions, colleagues?

Hearing and seeing none.

All those in favor?

Aye.

Any opposed?

The item carries.

Um, so that is all of our business.

Let's now turn to number five, which is our Comptroller's warrant report for the period of April 28, 2026 through May 4th, 2026, and the amount of 21,457,972.15 cents.

Um, Mr.

Comptroller.

Good morning, commissioners.

Uh, for the period reference, there are cash payments for release totaling approximately 21.4 million dollars, which includes uh 5.8 million dollars for payroll related payments and just over 861,000 for income tax warrants in terms of quantity, 4,259 uh income tax refunds were issued and 472 uh checks and electronic payments uh were issued.

Uh these funds were not issued by anyone in the city controller's office and they were not issued in accordance with the terms uh of the Grand Rapids City Charter.

This report does contain the details though of all those checks and payments uh on the following pages.

Thank you for that report.

Um we will now turn to our treasurer's report item number six.

Um, so that was received and filed for the period.

So let me go back.

Treasurer's report for the period of April 29th, 2026 through May 5th, 2026.

And I'm gonna take a little point of privilege and say congrats on your 16 years of service, Mr.

Treasurer.

Thank you.

I told you it's all it on LinkedIn.

Yep.

Thank you for your service.

And so I'll let you I'll turn it over to you for your report.

Now in in municipal years, that's about 100.

Uh, you have an age today.

I can say that almost with every single passing day, I I do see something new, and so I get to wear different hats, and I've really been uh privileged to serve the city uh in the capacity that I have and grown in the city uh through multiple multiple positions.

This a city treasure is my third position with the city, all with the treasurer uh organization, and I have been blessed by working with not only so many leaders before me, but also the staff and and co-workers and folks that I've worked with over those 16 years, and it's kind of bittersweet when you see the retirement announcements because it's like do you remember when we worked on this project weigh loss?

And so you see all that, and so really it it really uh points to our organization as really growing from within and bringing also outside talent that really supports our organization and our on our move.

So thank you so much for recognizing that.

I really appreciate it.

My 16 years is something I really can hang my hat on.

Um, yeah, yes.

Wait, now I get a party.

Um, with a report today, it's it's really been very similar to the last we just met last week with another report and a week before that with another report.

So we've had pretty successive meetings.

Um really the key point that we have right now is uh there's existing pressure right now to see rate hikes, not decreases.

So we've seen inflation tick up.

We also have a new Fed chair that was confirmed.

Um I believe he's installed on Friday is official first start day.

Um, so we're we're really focusing on what that's gonna look like.

But really, the fact that we're we're seeing energy prices go up, we're seeing all of our costs go up, we're seeing the gas pump price bounce around for us.

Um, you know, last week I called for staycations.

Enjoy enjoy the city and what we're building, and now the amphitheater is open and um good great reviews with that.

Although it was a little difficult getting out of the city Friday night at 5 30, but uh I didn't realize you're closing the Pearl on ramp, so but to me, that's just how you navigate new things that open up, right?

You find other ways to move about.

So we adapt, we change, and we move forward.

But what a great opening that we've had to see the vitality and the number of people that were downtown and the different events that were going on.

Um it it pause.

I pause to say, is that something I want to do in the future is maybe sell my house in the third ward and move downtown because I I love the vibrancy of what's going on here, and just to see the the different things the from the food trucks to the street vendors to the musicians to the groups, all the different weddings that are going on and the photography sessions.

I mean, it it's really vibrant and lively, and not to say that all the other um corridor improvement districts, the uh corridor districts, business districts that are also having that same resurgence of vibrancy.

We finally have weather that's cooperating with us to really want to get outside and be there, so it's it's great to see all that.

Um, but with our our current state with the city treasurer and the investments, um, there's one thing I did want to point out, and that was um as we're listening to this, we're talking about the parks improvements and what they're doing.

Um, the things I'm seeing is on 32nd Street, they put in a they're building a crosswalk across 32nd to where there's going to be a new pocket park in the third ward, which is gonna be excellent to see that to have that growth and development.

So I really want to call that out.

The other one is um we talked about uh item three, I think it's on the bid list, the 785,000 of interest earnings.

Um, it's not just me, it's a team of people.

It's my investment officer Levi Bolt, it's the engineering department giving us the drawdown schedules.

So if we were 785 is just one portion, if we really go back and look at maybe our last five or six uh debt service or debt issuances, we I think the last tabulation was we earned over six million dollars in interest.

So it's more than just the 785, it's on every one of these debt issuances.

We work with engineering to get the drawdown schedule so that we can go out and actively bid for the good investments that we're looking for to meet the needs of outgoing funds, but also to earn as much interest as we can.

And so it does take a team to actually do that.

It's it's not just on a treasurer, it's really the team of us that are actually coming together to follow the money all the way through the process because we all want to return more to these projects, and you know, when you think of $785,000, that's all that's a ton of money that they could use for different things that are happening in their contingency.

So it's really, I just wanted to call it that important work that is kind of behind the scenes, but I appreciate the fact that we see it on the bid list of how we're appropriating those funds.

With that, our our total portfolio right now is six hundred and seventy-seven million dollars.

We're earning over 3.34%.

And again, right now we're well positioned with having a lot of good short-term investments right now that are earning a high rate of return.

And we're really watching the market very closely to see if the Fed's gonna start raising rates because that's gonna we we have actually strategy meetings on a weekly or a bi weekly basis to talk about what we're gonna do with our investments in the future.

So we've already we've already planted investments out to cover the whole first half of FY27 operations.

We're also looking now with a tax money that comes in in July, we're gonna cover the payroll and debt service for the rest of FY27.

So our major issues for all of next year are gonna be covered with investments matching those things, and then we take the other funds and we continue to invest out longer when we need to.

Thank you so much.

And thanks for shouting out the other whole department as well.

Because like you said, it's and I think that's again why we're you know doing these things because we're thinking about how do we continue to operate where our core services.

So with that, I will uh note that that report is received and filed, and at 840 854, we can go ahead and adjourn.

Thank you.

Give a little gabble.