Jim Rinck for Grand Rapids Mayor

Mr. Friar,

                First and foremost, I want to thank you for being involved in the process.  I wish more voters would contact their representatives and candidates directly.

There are several important aspects to this issue which you should understand.  Unfortunately our local media only covers the highlights of an issue without providing the details.  Perhaps you will get a clearer understanding of the issue by knowing these details.

Grand Rapids does not own these parking garages outright.  The city paid for their construction with bonds which have not been repaid yet.  Selling these assets for $45 million would actually create a financial loss to the city.  A one-time infusion of cash, at the expense of the asset and the revenue it generates would be akin to eating your seed corn.

Operating costs for parking services vary slightly from year to year based on wear and tear of each garage.  However, in 2006, parking revenues generated $9,308,910 and the 2007 projection is $9,520,070.  2006 expenditures for parking services was $1,126,927 and the 2007 projection for expenditures is $1,146,029.  While the net revenue gain by parking services is actually closer to $8 million, my campaign has chosen to use the more conservative $5 -7 million projection to account for hidden expenses such as healthcare and pensions, etc.  Although, most parking services employees are part-time (many are college students) and do not receive healthcare or pensions.*

So you see, if these assets were sold for a one-time cash infusion; we would lose out on a perpetual source of income for the city.  If the city owned the properties outright, without owing on the bonds; we would become revenue neutral in under six years and would no longer reap the benefit of the revenue that they generate.

Mr. Tormala’s campaign statement is available on my website at www.jimrinck.com.  His plan includes an outrageous spending plan that revolves around the sale of the parking services to fund his spending initiatives.  However, if the parking services cannot be privatized, he still intends on his spending plan; he calls for a tax increase to cover his spending.  Either way, under the Tormala plan, the sale of the parking services will not serve as a reduction of city government; it will simply help to fund Tormala’s plan of increasing city bureaucracy.

I oppose the selling of these parking services because it would be a colossal mistake at this time and under the current circumstances.  If and when a time is right to sell ANY city-owned assets, I would encourage massive public input and involvement in the process.  I do not believe in suspending rules that allow for public comment or secret deals which shield elected officials from public scrutiny.  I believe that we need a more open and transparent government which will force our elected officials to be held responsible for their actions, good or bad.  The assets of the city belong to the people of Grand Rapids, not to the members of the City Commission.

Again, I thank-you for your interest and for your caring about our city and hope that I can look for your support in the August 7th Primary Election.

Sincerely,

Jim Rinck

*The data that was used above was obtained from the 2006 – 2010 Grand Rapids City Budget which is available online at: http://www.grand-rapids.mi.us/download_upload/binary_object_cache/budget_FY06%20PDF%20Final%20Fiscal%20Plan.pdf