GR comptroller sues the city, alleging 'usurping' of duties, staff

GRAND RAPIDS, Mich. (WOOD) — The Grand Rapids city comptroller has filed a lawsuit against the city for what he calls the "unlawful" transfer of responsibilities and employees out of his office.

Comptroller Max Frantz, who was first appointed to fill the vacant position in 2019 and was later elected in an unopposed election in 2022, claims the reallocation of staffing and duties violates the city charter and exceeds the legal authority of the city commission, City Manager Mark Washington and Chief Financial Officer Molly Clarin, who are also named in the suit.

"These … actions unlawfully alter the form of city government, eliminate Charter-mandated separation of powers, and impair the independence of an elected officer whose duties are established by law," the lawsuit argues.

A 2024 budget amendment reassigned the accounting, auditing and payment-issuance functions of Frantz's office to a newly created Accounting Services Division under the authority of the city manager, an appointed position.

In December 2024, the Grand Rapids City Commission voted to reduce the size of the comptroller's office from 16 employees to three, moving the majority of the workers to the fiscal services department run by the city's CFO.

The lawsuit points out that the budget of the comptroller's office was reduced by more than 78% between fiscal years 2025 and 2026, from nearly $3.2 million to just over $667,000. Over the same period, the Office of the City Manager saw its budget increase by almost $9 million — a 44% increase.

"Most people will view this, as I do, as an attack on independent oversight of city finances," Frantz told News 8 in December 2024.

Commissioners, the city attorney and other officials have said the moves were about ensuring efficiency and supervision of staff.