In TurboTax, review you State info- look for the screens as below, you will be able to indicate how much income should be taxed by Grand Rapids. You are correct that the Box 18 amount should have been used- I will submit a request for review.
You will need to file if you lived in the city during any part of the tax year and had taxable income. If you did not live in the city, but earned taxable income from within city limits you will also need to file. See
https://www.grandrapidsmi.gov/Directory/Guides/Income-Tax-Guide-for-Individuals
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