'If GR a biz, we would file bankruptcy'

GRAND RAPIDS, Mich. (WOOD) -- It was yet another ominous message from Grand Rapids City Hall: one firehouse closed, city parks shut down and up to 80 employees could be cut if taxpayers don't support an increase in the city's income tax rate.

"If we were a private sector business, we would be filing for bankruptcy today," City Manager Greg Sundstrom told 24 Hour News 8.

Approval of the proposed income tax increase could help avoid those cuts, generating $7 million to bring back laid off police officers and firefighters. Commissioners will hold a special meeting next Tuesday to vote on whether to put the question to the voters.

As of last week, three commissioners supported the move, while two were on the fence.

Third Ward Commissioner James White said the time is now to ask for the increase. "We have seriously compromised public safety by laying off police and firefighters," he told 24 Hour News 8. "When the city reaches that point, we have to ask."

First Ward Commissioner Dave Shaffer was one of the undecided members. He said he wants more proof the future sustainability plan will work before putting the question to voters. Commissioners have to make a decision by next week in time to put it on the May ballot.

"There's still some ways to go. I don't think we can do that before next week," Shaffer said.

Shaffer wants to table a proposal that would have residents pay for street lighting before he considers putting the question on the ballot.

Voters may be asked to decide whether to approve the increase, which would raise rates for city residents from 1.3% to 1.5%. Non-residents who work in the city would see an increase as well, from .65 % to .75% for the next five years.

That last group makes up about 30% of the total number of people who pay city income taxes. But under state law, only city residents can vote.

Taxation without representation? Maybe.

"But," Sundstrom asked, "is it fair to come and receive city services, have city police protection, city fire protection, use city roads? (Non-residents) need to help pay for it as well."

Even if the new tax is approved, Sundstrom promises the city will continue on a path that makes government more efficient through additional cost reductions and consolidations.

He said the proposed five-year increase would get the city through the current crisis while leaders work out a plan to be more sustainable. That crisis began about 10 years ago. Annual deficits followed.

But in Ginger Westerman's opinion , the city had a decade to prepare for that sustainability.

"When I got laid off last year, I had already planned because I was told I was going to be laid off," the Second Ward resident told 24 Hour News 8. "The city needs to start looking at their budget like we look at our budgets. That's how you're going to get the respect of the community."

Sundstrom argues the city has reacted. The workforce alone has been cut 25% over the last eight years.

But Sundstrom and others say the city has run out of options.

"We will literally have to close down large portions of city government if we can't transform," he said.