Inc. tax hike to fund budget transition

GRAND RAPIDS, Mich. (WOOD) - Grand Rapid City Commissioners have started their review of City Manager Greg Sundstrom's 2011-12 spending plan.

Although it's expected to be a no-frills budget, most of the more-severe cuts were made last year, when terms such as "draconian" were being tossed around.

The city budget was about $20 million in the hole; with more than 100 jobs cut.

The 2011-12 budget is all about investing in efficiency. Despite the tight budget, Sundstrom found $32 million to help fund the transition to a more-efficient government.

The $32 million is what is left over after the city funds those 10 police officers and an additional fire company for the next five years after the voter-approved income tax hike last year.

"Instead of plugging holes in a leaky budget, we're putting it aside and we're creating a transformation fund," Sundstrom said.

The idea is to give city commissioners some extra money to make strategic investments in equipment, and programs to help the city operate more efficiently with less money.

One change residents may notice is the type of fire truck that shows up when a call is made for help.

Fire officials are looking at so-called Quick Response Vehicles, which are smaller and use compressed air foam instead of water.

In one California study, it took firefighters nearly 600 gallons of water to put out a typical house fire, but just 45 gallons of the compressed air foam to do the job.

The vehicles, which are popular in Europe, cost about one-third of a standard fire engine and require fewer firefighters.

Union leaders like the idea.

"We'll do just about anything to save a life," said Bill Smith, the president of Local 366 (GRFD). "We'll get in there, and why wouldn't we want to look at new technology if it's something that's going to assist us in doing our jobs?"

The key word is "assist."

Union leaders say you can make their job more efficient, but you still need boots on the ground.

"I would be opposed at cutting our staffing, closing stations or getting rid of any type of resources that are going to be there," Smith said.

Currently, there are no plans to reduce firefighters using the new technology. The reality is, the city's going to have to run leaner in the future.

"We have to change," Sundstrom said. "We have to do things differently."

As for this year's budget, Sundstrom said he expects to eliminate nine positions at city hall, mostly through attrition. He's also looking for the unions to give up about 10 percent in wages and benefit concessions.

The 2011-12 budget goes into effect July 1.