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CITY OF MUSKEGON CITY COMMISSION MEETING NOVEMBER 22, 2016 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: A. Recognition of Fall 2016 Citizen’s Academy Graduates Public Safety □ INTRODUCTIONS/PRESENTATION: □ CITY MANAGER’S REPORT: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Approval of Revised Citizen Participation Plan, Specifically the Period for Citizen Comments Community & Neighborhood Services C. Sale of a Non-Buildable Vacant Lot at 1296 Lakeshore Drive Planning & Economic Development D. Request to Add Parcels to the City’s Existing Groundwater Ordinance – SECOND READING Planning & Economic Development E. Towing Contract Extension (Ramos Towing Services) Public Safety F. Wireless Internet at Muskegon Farmers Market City Clerk G. Two Entry Level Positions in IT Information Technology □ PUBLIC HEARINGS: A. Public Hearing – Request to Establish an Obsolete Property District – 1740 E Sherman Boulevard Planning & Economic Development B. Public Hearing – Request to Issue an Obsolete Property Certificate – Pacifica Muskegon, LLC – 1740 E Sherman Boulevard Planning & Economic Development Page 1 of 2 □ COMMUNICATIONS: □ UNFINISHED BUSINESS: □ NEW BUSINESS: A. First Quarter 2016-17 Budget Reforecast Finance Director B. Commercial Chemical Spreader/Sprayer DPW/Equipment C. Transfer of the Commercial Rehabilitation Exemption Certificate – 316 Morris Avenue Planning & Economic Development D. Revocation of a portion of the Commercial Rehabilitation Exemption Certificate – 316 Morris Avenue Planning & Economic Development E. Approval of a Neighborhood Enterprise Zone Certificate – 316 Morris Avenue Planning & Economic Development F. Adopt a Resolution of Intent Regarding Recreational Authority City Manager □ ANY OTHER BUSINESS: □ PUBLIC PARTICIPATION: ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) □ CLOSED SESSION: □ ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724- 6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705. Page 2 of 2 Memorandum To: Mayor and Commissioners From: Frank Peterson Re: City Commission Meeting Date: November 16, 2016 Here is a quick outline of the items on next week’s agenda: 1. Under the consent agenda, we are asking the Commission for approval of the following: a. Last meeting’s minutes. b. Approval of the revised citizen participation plan. This revision applies to the comment period for citizen input. c. The sale of a vacant unbuildable parcel to adjoining property owners along Lakeshore Drive. The parcel in question is the hill between the railroad tracks and the houses on Lakeshore. d. Second Reading of a request to add parcels to the City’s groundwater ordinance. This item already came before the commission; however, there were a number of mistakes in the address list provided by the consultant. Accordingly, we are asking the commission to add this updated list of properties to the ordinance. e. One Year extension of the Ramos Towing Services Contract. f. Approval of installation of wireless internet connection at the Muskegon Farmers Market. The purpose of the wireless internet connection is to provide a more reliable connection with city hall to allow staff to access the city’s network (including BS&A software and the city’s intranet). This is important for more efficiency and stronger management on site. It will also allow us to eliminate the phone service at the market. g. We have a vacancy in our IT Department. We have two employees supporting all departments as well as the cities of Montague, Roosevelt Park, and North Muskegon. We are going to restructure the position by creating two entry-level positions to allow more flexibility within the department. 2. Under public hearings, we will have two items: a. We are creating an obsolete property district at the former Target Department Store location on Sherman. The property was recently sold and we expect to see $1.5 Million in new investment to accommodate new retail opportunities at the site. b. We are also asking the commission to approve an obsolete property certificate for the same site on Sherman. 3. Under new business, we will be asking the Commission to approve the following: a. Approval of the 1st Quarter Budget Forecast to account for a reduction in income tax revenue (because of a significant corporate refund) as well as additional building permit revenues. We are also seeing some increased expenditures, and are now forecasting a small budget deficit of about $150,000. As the year progresses, it is likely that this deficit will shrink/disappear. b. We are requesting permission to purchase a commercial spreader. The spreader will allow us to better-manage our greenspaces throughout the city without relying on outside companies. c. As part of the incentive package for Terrace Plaza, we have a series of action items, starting with the transfer of the current Commercial Rehabilitation Exemption Certificate from the “entire building” to floors 1 through 5. d. This item will revoke the commercial certificate on floors 6-7. e. This item will issue the certificate for the NEZ for floors 6-7. f. Adopt a Resolution of Intent Regarding Recreational Authority. Date: November 15, 2016 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the October 25, 2016 Regular City Commission Meeting and the November 7, 2016 Worksession Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING OCTOBER 25, 2016 CITY COMMISSION CHAMBERS @ 5:30 P.M. MINUTES The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, October 25, 2016. Pastor Wally Reames, Central Assembly of God Church, opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood Commissioners Willie German, Jr., Dan Rinsema-Sybenga, Byron Turnquist, and Ken Johnson, City Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann Meisch. Absent: Commissioner Debra Warren HONORS AND AWARDS: A. Resolution Recognizing Adopt-A-Lot Sponsors in Nelson Neighborhood The Mayor issued resolutions of recognition commending local organizations and citizens that are creating a spirit of community and commitment to neighborhoods through the Adopt-A-Lot Program. 2016-83 CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY OF REQUEST: To approve minutes of the October 10, 2016 Worksession Meeting and the October 11, 2016 Regular City Commission Meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. C. Permanent Traffic Control Order – Remove Traffic Signal at Clay Avenue and 3rd Street and Install permanent “Stop” signs at Clay Avenue, per Control order #29-(2016). Department of Public Works SUMMARY OF REQUEST: Authorize removal of traffic signal at Clay Avenue and 3rd Street and install permanent “Stop” signs at Clay Avenue, per Traffic Control Page 1 of 9 Order #29-(2016). FINANCIAL IMPACT: Cost of removing Traffic Signal, installing signs/posts, if approved. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize DPW to have contractor remove Traffic Signal at Clay Avenue and 3rd Street and staff install “Stop” signs at Clay Avenue, per Traffic Control Order #29-(2016). D. Permanent Traffic Control Order – Remove Traffic Signal and Install permanent “Stop” Signs at Muskegon Avenue and 1st Street, per Traffic Control order #30-(2016). Department of Public Works SUMMARY OF REQUEST: Authorize removal of Traffic Signal and installation of permanent “Stop” signs at Muskegon Avenue and 1st Street/Apple Avenue, per Traffic Control Order #30-(2016). FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Install Permanent Stop Signs on Muskegon Avenue at First Street per Traffic Control Oder #30-(2016). I. Request to Add Parcels to the City’s Existing Groundwater Ordinance Planning & Economic Development SUMMARY OF REQUEST: The Commission previously approved the parcels to be added to the groundwater ordinance regarding the former Mobil Oil Pipeline – Sisson Avenue at McCracken Street on August 23, 2016 (Ordinance 2355). However, the applicant listed the wrong parcels on the application, but they did mail notices to the correct addresses. Staff is requesting to repeal Ordinance 2355 and replace it with a new ordinance with the correct parcels listed. The ordinance prohibits the use of groundwater wells and secondary water supplies under certain circumstances and in certain locations, to prevent exposure to contaminated groundwater, as well as to prevent wells from influencing the movement of contaminated water. Notice was sent to the affected addresses prior to this meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the ordinance amendment to add the additional 52 parcels. J. Quit Claim Five (5) Residential Properties to the Muskegon County Land Bank Authority for Demolition Through the Hardest Hit 2 Funds Blight Grant Planning & Economic Development Page 2 of 9 SUMMARY OF REQUEST: Request to Quit Claim five (5) City of Muskegon residential properties: 430 Allen Avenue, 333 Catherine Avenue, 325 Iona Avenue, 139 Myrtle Avenue, and 862 Stevens To the Muskegon County Land Bank Authority, to be demolished using “Hardest Hit 2” funds from the Michigan State Housing Development Authority (MSHDA). The City obtained these properties through the property tax foreclosure process at the end of 2015 with the intent to demolish them. The City did not pay for any of these properties to obtain ownership. FINANCIAL IMPACT: By deeding these to the Muskegon County Land Bank Authority, the City will not incur the demolition fees to demolish each of these structures (estimated at $70,000 plus). BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the request and have the Mayor and City Clerk sign the Quit Claim Deed to the Muskegon County Land Bank Authority. K. West Michigan Metropolitan Transportation Planning Program (WestPlan) Dues FY 2016 (October 1, 2016 – September 30, 2017) City Manager SUMMARY OF REQUEST: Authorize staff to pay the City of Muskegon’s portion of the WestPlan dues annually at a cost not to exceed $20,000 annually payable to West Michigan Shoreline Regional Development Commission: projects and distribution of federal transportation funds. FINANCIAL IMPACT: Not to exceed $20,000 per year. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve this request. Motion by Commissioner Johnson, second by Vice Mayor Hood, to approve the Consent Agenda as presented with the exception of Items B, E, F, G, AND H. ROLL VOTE: Ayes: Hood, German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron Nays: None MOTION PASSES 2016-84 ITEMS REMOVED FROM THE CONSENT AGENDA B. Permanent Traffic Control Order – Remove Traffic Signal and Install permanent “Stop” signs at Western Avenue and 4th Street, per Traffic Control order #28-(2016). Department of Public Works Page 3 of 9 SUMMARY OF REQUEST: Authorize removal of traffic signal and installation of permanent “Stop” signs at Western Avenue and 4th Streets, per Traffic Control Order #28-(2016). FINANCIAL IMPACT: Cost of removing Traffic Signal, installing signs/posts, if approved. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize DPW to have contractor remove Traffic Signal and staff install “Stop” signs at Western Avenue and 4th Street, per Traffic Control Order #28-(2016). Motion by Commissioner Turnquist, second by Commissioner Johnson, to authorize DPW to have contractor remove traffic signal and staff to install “Stop” signs at Western Avenue and 4th Street, per Traffic Control Order #28-(2016). ROLL VOTE: Ayes: German, Rinsema-Sybenga, Johnson, Gawron, and Hood Nays: Turnquist MOTION PASSES E. Removal of Street Lights on Ottawa Avenue Department of Public Works SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Consumer’s Energy to remove 27 street lights on Ottawa Street from Hall Street to Richards Park for an estimated cost of $9,500. The estimated annual savings to the City is over $3,900 for an estimated payback of less than 2.5 years. FINANCIAL IMPACT: $9,500 from the Street Light cost center BUDGET ACTION REQUIRED: Adjustment to the Street Light cost center when preparing the 1st quarter reforecast. STAFF RECOMMENDATION: To authorize staff to enter into an agreement with Consumer’s Energy to remove 27 mid-block street lights on Ottawa Street between Hall & Richards Park. Motion by Commissioner Turnquist, second by Commissioner Johnson, to authorize staff to enter into an agreement with Consumer’s Energy to remove 27 mid-block street lights on Ottawa Street between Hall & Richard’s Park. ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES F. Police Cruisers Department of Public Works/Equipment Page 4 of 9 SUMMARY OF REQUEST: Authorize staff to purchase three Chevy Caprice Cruisers from Berger Chevrolet, the Mi-Deal State contract holder for a price of $27,109.00 each. These will replace the three oldest cruisers currently in use. FINANCIAL IMPACT: $81,327.00 or $27,109.00 each. BUDGET ACTION REQUIRED: None. Amount is what was budgeted. STAFF RECOMMENDATION: Authorize staff to purchase three Chevy Caprice Cruisers from Berger Chevrolet. Motion by Commissioner German, second by Commissioner Rinsema-Sybenga, to authorize staff to purchase 3 Chevy Caprice Cruisers from Berger Chevrolet. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and German Nays: None MOTION PASSES G. Amendment to the Zoning Ordinance Planning & Economic Development SUMMARY OF REQUEST: Request to amend the zoning ordinance to require “private clubs, lodge halls, social & similar organizations” to obtain a special land use permit instead of allowing them as a use by right in B-2, Convenience & Comparison Business districts. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the zoning ordinance amendment. COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the request at their October meeting. Motion by Commissioner German, second by Commissioner Rinsema-Sybenga to approve the zoning ordinance amendment. Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to table this agenda item. ROLL VOTE: Ayes: Johnson, Gawron, Hood, German, Rinsema-Sybenga, and Turnquist Nays: None MOTION PASSES H. Authorize Muskegon County to Adopt and Enforce a Storm Water Runoff and Post-Construction Ordinance Planning & Economic Development Page 5 of 9 SUMMARY OF REQUEST: Staff is requesting the approval of the resolution that will allow Muskegon County to administer and enforce a Storm Water Runoff and Post-Construction Ordinance on behalf of the City of Muskegon. This ordinance will require a landowner to obtain a Storm Water Permit from the County Drain Commissioners office before commencement of a project that includes any of the following: 1) requires Planning Commission approval 2) creates more than 10,000 square feet of impervious surface 3) disturbs, changes, disrupts, more than 10,000 square feet of existing impervious surface 4) disturbs more than one acre of land 5) is within 500 feet of the water’s edge of a drainage course, wetland, lake or stream The application for a Storm Water Permit is $600 and will be approved or denied within 30 days, however, most reviews can be completed within one to two weeks. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the ordinance. Motion by Commissioner Rinsema-Sybenga, second by Commissioner German, to approve the ordinance. ROLL VOTE: Ayes: Gawron, Hood, German, Rinsema-Sybenga, Turnquist, and Johnson Nays: None MOTION PASSES 2016-85 PUBLIC HEARINGS: A. BID Special Assessment – Resolution Confirming Special Assessment Roll Planning & Economic Development SUMMARY OF REQUEST: The City Commission approved the creation of a BID special assessment district at the September 27, 2016 meeting and the Special Assessment Roll is now ready to be confirmed. The assessments will go towards various downtown expenditures, including snow removal on sidewalks, spring/fall clean up and landscaping, holiday decorating, banners & directional signs, marketing/advertising and art. The BID assessment includes both a “Class A” and “Class B” district. FINANCIAL IMPACT: The total estimated cost of services within the BID is $150,000 of which approximate 75% ($111,924) will be paid by the special assessment to property owners, with the remaining amount to come from the existing BID fund. Page 6 of 9 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution approving the confirmation of the special assessment roll and authorize the Mayor and Clerk to sign. PUBLIC HEARING COMMENCED: Public Participation: Bill Noordyk, 103 W. Clay, spoke in opposition of the confirmation of the special assessment roll for street lighting. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson, to close the public hearing and approve the resolution approving the confirmation of the special assessment roll and authorize the Mayor and Clerk to sign. ROLL VOTE: Ayes: Hood, Rinsema-Sybenga, Turnquist, Johnson, Gawron Nays: German MOTION PASSES B. Confirmation of Special Assessment Roll – Street Lighting Treasurer SUMMARY OF REQUEST: Confirm the special assessment roll – street lighting. FINANCIAL IMPACT: Total collections over 10 years projected to be $2,706,860.00 based on 14,360 eligible parcels. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Confirm the roll for special assessment and to establish the amount to levy on all eligible properties for 10 years and approve the resolution. PUBLIC HEARING COMMENCED: Public Participation: the following members of the public spoke regarding the confirmation of the roll for a street light assessment. In opposition: August Panici, 2137 Hudson David Walthey – 1724 Beidler 1720 Beidler – 640 Catawba Duane Little, 1076 Ambrosia Tom Weatherby, 1747 Edgewater Jack Page, 1853 Cherry Michael Howeisen, 903 Turner Marietta Barrett, 1366 Creston Easter Young, 321 Merrill Dennis Mayer, 1687 E. Harbour Towne & 3545 Marina View Pointe Hannah Lewis, 885 Marquette Sena Parks, 307 Ottawa Ann Craig, 1387 & 1388 6 th Street Mancela Jimenez, 751 Washington In Favor: Larry Spataro, 1567 6th Street Page 7 of 9 Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga, to close the public hearing and confirm the roll for special assessment and to establish the amount to levy on all eligible properties for 10 years and approve the resolution. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Hood Nays: German MOTION PASSES 2016-86 NEW BUSINESS: A. Concurrence with the Housing Board of Appeals Notice and Order to Demolish Public Safety 2152 S. Getty Street SUMMARY OF REQUEST: This is to request that the City Commission concur with the findings of the Housing Board of Appeals that the structure is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days or infraction tickets may be issued. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder or staff may issue infraction tickets to the owner, agent or responsible party if they do not demolish the structure. FINANCIAL IMPACT: General Funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to concur with the Housing Board of Appeals decision to demolish. ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES B. City and Consumer’s Energy Contract for Street Lights Upgrade to LED Department of Public Works SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Consumer’s Energy to start the process of engineering and upgrading the City’s street lights to LED at an estimated cost of over 2.7 million dollars with an initial payment of $270,000 to start the process. FINANCIAL IMPACT: 2.7 million Page 8 of 9 BUDGET ACTION REQUIRED: None at this time, however, future budgets will reflect this additional expense. STAFF RECOMMENDATION: To authorize staff to enter into an agreement with Consumer’s Energy to start the engineering/upgrades of all Consumer’s owned street lights into LED. Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to authorize staff to enter into an agreement with Consumer’s Energy to start the engineering/upgrades of all consumer owned street lights into LED. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Hood Nays: German MOTION PASSES PUBLIC PARTICIPATION: Public comments were received. ADJOURNMENT: The City Commission Meeting adjourned at 8:37 p.m. Respectfully Submitted, Ann Marie Meisch, MMC, City Clerk Page 9 of 9 CITY OF MUSKEGON CITY COMMISSION WORKSESSION Monday, November 7, 2016 Muskegon City Commission Chambers 933 Terrace Street, Muskegon, MI 49440 5:30 PM Minutes 2016-87 Present: Commissioners Turnquist, Johnson, Gawron, German (left at 6:00 p.m.), and Rinsema-Sybenga Absent: Commissioners Hood and Warren Muskegon County “Rec” Authority Ken Johnson explained that we will be able to pool our resources together and that individual “Rec” plans will not be necessary. A resolution needs to be approved if the city is interested in participating. This type of Authority could lead to other funding mechanisms. Any millage questions would have to be a vote of the people. We can also withdraw from the Authority by resolution if they decide to ask to levy a millage and the city does not want to. Downtown Residential Zoning Mike Franzak is reviewing current downtown residential zoning. Potential proposal to change the rule of 66 foot lots will allow for smaller lot sizes if the living space meets the minimum requirements. Jamie Pesch explained the form-based code. Public comments were also received. Adjournment Moved by Hood, seconded by Johnson, to adjourn the meeting at 7:07 p.m. MOTION PASSES ______________________________ Ann Marie Meisch, MMC – City Clerk Commission Meeting Date: November 22nd, 2016 Date: November 10, 2016 To: Honorable Mayor & City Commission From: Community and Neighborhood Services RE: Approval of Revised Citizen Participation Plan, Specifically the Period for Citizen Comments SUMMARY OF REQUEST: To approve a revision of the Citizen Participation Plan clarifying the length of time allowed for citizens to comment. The change would reduce the number of days required for a formal comment period from 30 days to either 15, 20 or 30 days. SEE ATTACHED: The proposed amendment is on page three of the Citizen Participation Plan, under “Period for Citizen Comments,” paragraph two, highlighted area. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the request. COMMITTEE RECOMMENDATION: Item was approved by the Citizen’s District Council. Amendments and/or Modifications The City will follow 24CFR 91.505 when making amendments or modifications to the Consolidated plan, Action Plan or Citizen Participation Plan. An amendment to the Consolidated Plan or Action Plan will be necessary when one of the following occurs. 1. A change occurs in the City's allocation priorities or a change in the method of distribution of funds. 2. It is necessary to change the purpose, scope, location or beneficiaries of an activity. 3. An activity is to be carried out using funds from any program covered by the Consolidated Plan but not previously describes in the Action Plan Criteria for Substantial Amendment The City of Muskegon considers an item to be a substantial amendment that significantly affects the scope of services, purposes or beneficiaries of a project or in combination with other changes that are greater than 10% of the year’s fiscal CDBG or HOME entitlement amount in question. Any amendments to the Consolidated Plan will be advertised in the City's major newspaper "the Muskegon Chronicle" allowing the citizenry 30 days to comment on the amendment(s). The City will review all comments concerning the changes written or oral. A summary of the comments and views along with any required replies will be attached to the amendments of the plan. Period for Citizen Comments A formal comment period of 30 days will be provided for all Consolidated Plans, Annual Action Plans, Citizens Participation Plan. In the case of Environmental Reviews and Request for Release of Funds activities the City will comply with CFR 24 58.45. In all circumstances a summary of the plan, performance report, or substantial amendment, or other relevant documentation will be published at the beginning of the formal comment periods. The summary will clearly express the period that comments will be accepted (i.e., 15, 20, or 30 days) as well as the procedure for making comments. Written comments received during the comment period along with oral comments made during Public Hearings will be considered. A summary of such comments by citizens, public agencies, and other interested parties will be attached to the relevant Plan, substantial amendment or performance report or related document. In a situation where it is not favorable incorporated the comments will be included in the summary of comments along with an explanation of why it was not possible to incorporate the comments. Commission Meeting Date: November 22, 2016 Date: November 15, 2016 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Sale of a Non-Buildable Vacant Lot at 1296 Lakeshore Dr SUMMARY OF REQUEST: To approve the sale of a vacant, non-buildable lot at 1296 Lakeshore Dr. to five different adjacent property owners (1487 High St, 1492 High St, 1294 Beach St, 1298 Beach St, 1284 Beach St). The lot is roughly 0.92 acres and is considered unbuildable because of its location on a steep hill and the general intent of its zoning classification. It is zoned OSC, Open Space Conservation. These districts are intended to provide for permanent open spaces in the community, and the protection of sand dunes and other natural features, and are designed to provide undeveloped recreational areas and to safeguard the health, safety, and welfare of the citizens of Muskegon and adjacent areas by limiting development in locations where police and fire protection, protection against flooding by high water table or storm water, and dangers from excessive erosion are not possible without excessive costs to the City. The property owners wish to purchase the property to prevent any future development and to be able to maintain the property. They have offered $8,000 plus the cost of the survey ($2,147) and all closing costs. FINANCIAL IMPACT: The sale of this lot will generate additional tax revenue for the City and will place the property back on the City’s tax rolls, thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the lot sale request. Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE SALE OF A NON-BUILDABLE LOT AT 1296 LAKESHORE DR FOR $8,000 PLUS THE COST OF A SURVEY AND ALL CLOSING COSTS. WHEREAS, Robert/Susan Mixer (1487 High St), Charles/Merri Davis (1492 High St), Jeff/Gail Hall (1294 Lakeshore Dr), Mary Price (1298 Lakeshore Dr) and Barbara Barteau (1284 Lakeshore Dr) will be allowed to purchase the parcel designated as number 24-205-582-0001-00, located at 1260 Lakeshore Dr for $8,000 plus the cost of the survey and all closing costs; and WHEREAS, the purchasers will combine this property with their respective properties as outlines in the survey; and WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further maintenance costs; and NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-582-0001-00, located at 1296 Lakeshore Dr. be sold to Robert/Susan Mixer (1487 High St), Charles/Merri Davis (1492 High St), Jeff/Gail Hall (1294 Lakeshore Dr), Mary Price (1298 Lakeshore Dr) and Barbara Barteau (1284 Lakeshore Dr) for $8,000 plus the cost of the survey and all closing costs. CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 1 & 12 BLK 582 Adopted this 22nd day of November, 2016. Ayes: Nays: Absent By: _________________________ Stephen J. Gawron Mayor Attest: ________________________ Ann Meisch, MMC City Clerk I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on November 22, 2016. 2 By: ________________________ Ann Meisch, MMC City Clerk 3 Commission Meeting Date: October 25, 2016 Date: November 17, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Request to Add Parcels to the City’s Existing Groundwater Ordinance – SECOND READING SUMMARY OF REQUEST: The Commission previously approved the parcels to be added to the groundwater ordinance regarding the former Mobil Oil Pipeline – Sission Ave @ McCracken St on August 23, 2016 (ordinance 2355). However, the applicant listed the wrong parcels on the application, but they did mail notices to the correct addresses. Staff is requesting to repeal ordinance 2355 and replace it with a new ordinance with the correct parcels listed. The ordinance prohibits the use of groundwater wells and secondary water supplies under certain circumstances and in certain locations, to prevent exposure to contaminated groundwater, as well as to prevent wells from influencing the movement of contaminated water. Notice was sent to the affected addresses prior to this meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the ordinance amendment to add the addition 52 parcels. COMMITTEE RECOMMENDATION: None 11/17/2016 MUSKEGON CITY COMMISSION THE CITY OF MUSKEGON HEREBY ORDAINS: Ordinance number 2355 is hereby repealed and replaced by the following: An ordinance amending the City Code of Ordinances by adding to Ordinance No. 2039 (Muskegon City Code of Ordinances Section 34, Article lll) certain identifying “Appendix Maps” and descriptions of properties determined to be “affected premises” on which groundwater wells are prohibited unless excepted under Section 34-65 due to the contamination or potential contamination of said groundwater. The said Ordinance No. 2039 is amended by this Ordinance. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: 1. The properties identified in this amending ordinance are determined to be affected premised within the meaning of and regulated in accordance with, Ordinance No. 2039 or any successor ordinance prohibiting wells on such premises. The said affected premises are included in Attachment A. 2. Attached to this ordinance and incorporated herein are Appendix Maps locating the affected premises. 3. This ordinance shall be effective ten (10) days after publication. In the event any part of this ordinance is finally determined to be invalid or unenforceable by a court having jurisdiction, then said determination shall not affect the validity of the remaining provisions. Adopted this 25th Day of October 2016. Ayes: Nays: Absent: BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on August 25, 2016. ______________________________ Ann Meisch Clerk 11/17/16 Attachment A 2326 Greenwood Street 1977 Harding Avenue 1978 Harding Avenue 1984 Harding Avenue 1995 Harding Avenue 1996 Harding Avenue 2003 Harding Avenue 2006 Harding Avenue 1970 Harding Avenue 1987 Harding Avenue 1971 Harding Avenue 2200 McCracken Street 2204 McCracken Street 2218 McCracken Street 2226 McCracken Street 2271 McCracken Street 2272 McCracken Street 2287 McCracken Street 2311 McCracken Street 2320 McCracken Street 2331 McCracken Street 2264 McCracken Street 2001 Miner Avenue 1967 Miner Avenue 1975 Miner Avenue 1996 Miner Avenue 1997 Miner Avenue 2005 Miner Avenue 2011 Miner Avenue 2021 Miner Avenue 2030 Miner Avenue 2031 Miner Avenue 2038 Miner Avenue 2147 Moon Street 2198 Moon Street 2225 Moon Street 2231 Moon Street 2205 Moon Street 2206 Moon Street 2185 Moon Street 1992 Morton Avenue 1995 Morton Avenue 1998 Morton Avenue 2001 Morton Avenue 2006 Morton Avenue 2017 Morton Avenue 2016 Morton Avenue 1983 Morton Avenue 1993 Morton Avenue 2005 Morton Avenue 2026 Morton Avenue 2025 Morton Avenue 11/17/16 COMMISSION MEETING DATE: NOVEMBER 22, 2016 Date: November 15, 2016 To: Honorable Mayor and City Commissioners From: Director of Public Safety Jeffrey Lewis RE: Towing Contract Extension (Ramos Towing Services) SUMMARY OF REQUEST: The Director of Public Safety requests that the City Commission review and consider approving a contract extension with our current service provider Ramos Towing. Currently, Ramos provides towing/impoundment/storage service for the City of Muskegon. Ramos Towing has been under authorized contract services for towing for the last 3 years (01/14/14 to 01/14/17). Ramos Towing is willing extend towing services for one year (01-14-2017 to 01-14-2018) as allowed in the current contract. FINANCIAL IMPACT: None – current contact language in effect BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of this extended towing contract agreement for one year. TOWING AGREEMENT ADDENDUM This Addendum is being made to The Towing Agreement made on January 14, 2014 between the City of Muskegon, Michigan municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and Ramos Towing with offices at 2444 Getty, Muskegon Heights, Michigan 49444, (“Contractor”). The January 14, 2014 through January 14, 2017 Agreement allows the City to have the unilateral option to extend this Agreement for two additional one-year terms under the same terms and condition of the Agreement if, in City’s sole discretion, the extension is in the City’s best interest. This extension will be exercised by the City providing written notice to the Contractor at least 60 days prior to the termination date. The City hereby extends the January 14, 2014 Agreement through January 14, 2018 with Ramos Towing. City of Muskegon, a Michigan Municipal Corporation By_____________________________________________ Its Mayor Contractor – Ramos Towing By_____________________________________________ Its Owner Page 1 of 1 Date: November 22,2016 To: Honorable Mayor and City Commissioners From: Ann Meisch, City Clerk RE: Wireless Internet at Muskegon Farmers Market SUMMARY OF REQUEST: Currently, the Farmers Market cannot connect to the City of Muskegon’s network. Because of this issue, they are unable to have a City of Muskegon email or use the programs currently available to other employees. Currently they are using a much slower provider. Connecting the market to the City’s infrastructure is a specialty service that few can provide. The IT Department was able to receive a quote from MapleNet Wireless (attached) to install the wireless link. With this capability, we will be able to utilize our Cisco phone system and eliminate a $293.44 monthly bill – a payback of approximately 2.5 years while increasing our bandwidth tremendously. This will not provide better wireless internet to the customers at the market but it is a feature we will be reviewing in the future. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To authorize MapleNet to install a wireless link to connect the Muskegon Farmers Market to City Hall and to select option two in the amount of $8,914.29 based on the recommendation of the IT Department. 4561 Pine Creek Rd. Elkhart, IN 46516 Phone: 574-389-3100 Fax: 574-389-3119 Toll Free: 877.MAPLE-01 www.maplenetwireless.com VIA ELECTRONIC MAIL Monday, October 24, 2016 Jason Boes jason.boes@shorelinecity.com Re: City of Muskegon: PTP Link Options: FD to Market, FD to Sign Jason, Below are three options for your review (350Mbps, 500Mbps, and 1Gbps to the market). Each option comes with a ~30Mbps wireless connection to the sign. The system to the sign assumes power, a data port, and a mounting location at the sign. This also assumes line of sight and our standard cable runs at all locations. Any non standard MapleNet Wireless conditions could alter the price. Sincerely, Michael Hutter National Sales 574.320.2908 attachments cc: Client file 4561 Pine Creek Rd. Elkhart, IN 46516 Phone: 574-389-3100 Fax: 574-389-3119 Toll Free: 877.MAPLE-01 www.maplenetwireless.com Project Options City of Muskegon Fire > Farmers Market: 350Mbps Full Duplex FCC Licensed PTP Option #1 Qty Description 1 350Mbps PTP Wireless Link 1 30Mbps PTP link for sign 1 Year 1 onsite and hardware support included for Market Link 1 Installation and Testing, misc mounts Total $ 8,271.43 City of Muskegon Fire > Farmers Market: 500Mbps Full Duplex FCC Licensed PTP Option #2 Qty Description 1 500Mbps PTP Wireless Link 1 30Mbps PTP link for sign 1 Year 1 onsite and hardware support included for Market Link 1 Installation and Testing, misc mounts Total $ 8,914.29 City of Muskegon Fire > Farmers Market: 1Gbps Full Duplex FCC Licensed PTP Option #3 Qty Description 1 1Gbps PTP Wireless Link 1 30Mbps PTP link for sign 1 Year 1 onsite and hardware support included for Market Link 1 Installation and Testing, misc mounts Total $ 11,557.14 Date: November 22, 2016 To: Honorable Mayor and City Commissioners From: Jim Maurer, IT Director RE: Two Entry Level Positions in IT SUMMARY OF REQUEST: Recently our Database Administrator left for a new position. Currently there are only two employees supporting over two hundred city employees including City Hall, Police, Water Filtration, Fire Department, Farmers Market, etc. as well as external agencies including the cities of North Muskegon, Roosevelt Park, and City of Montague. As such, the IT Department finds itself in a position to restructure the department. The IT Department would like to move from an administrator position to two entry level technical positions. One of the positions will be full-time and the other part-time. FINANCIAL IMPACT: The current salary of the Database Administrator is $65,000. The proposed salary for a full-time technical position starts at $45,000 and the part- time wage will be hourly based on the same wage. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To create two entry-level technical positions in the IT Department. Commission Meeting Date: November 22, 2016 Date: November 14, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing - Request to Establish an Obsolete Property District – 1740 E Sherman Blvd SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Pacifica Muskegon, LLC, has requested the establishment of an Obsolete Property District for their property at 1740 E Sherman Blvd. The establishment of the Obsolete Property District would allow them to apply for an Obsolete Property Rehabilitation Exemption Certificate. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the Obsolete Property District COMMITTEE RECOMMENDATION: None. 1 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUTION NO. _____ A resolution establishing an Obsolete Property Rehabilitation District. The City Commission of the City of Muskegon hereby RESOLVES: Recitals A. The City of Muskegon has been designated as a qualified local government unit for the purpose of establishing Obsolete Property Rehabilitation Districts and approving Applications for Obsolete Property Rehabilitation Exemption Certificates. B. The area located in the land described in this resolution is known to the City Commission and is clearly characterized by the presence of obsolete commercial property, and the land and improvements are obsolete commercial property. C. Notice has been given by certified mail to the owners of all real property within the proposed Obsolete Property Rehabilitation District and a hearing has been held offering an opportunity to all owners and any other resident or taxpayer of the City to appear and be heard. Said notice was given at least ten (10) days before the hearing. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: 1. That the property described in this resolution and proposed as an Obsolete Property Rehabilitation District is characterized by obsolete commercial property. 2. That the obsolete commercial property, the subject of this resolution, as is described in Attachment A. 3. That the City Commission hereby establishes an Obsolete Property Rehabilitation District on the lands and parcels set forth in the attached description. This resolution passed. Ayes __________________________________________________________________ Nays __________________________________________________________________ CITY OF MUSKEGON BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk CERTIFICATION This resolution was adopted at a meeting of the City Commission, held on November 22, 2016. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By ___________________________ Ann Meisch, City Clerk ATTACHMENT A: PROPERTY DESCRIPTION CITY OF MUSKEGON SEC 34 T10N R16W PT OF S 1/2 OF SW 1/4 DESC AS FOL COM S 89D 34M 26S W 1382.00 FT (AS MEAS ALG S SEC LN & N 00D 46M 26S E 434.72 FT FROM S 1/4 COR SD SEC FOR POB TH S 89D 34M 26S W 139.73 FT TH S 00D 25M 34S E 251.83 FT TH WLY 256.18 FT ALG NLY ROW LN SHERMAN BLVD ON A 3769.72 FT RAD CURVE TO RT (CHORD BEARING S 76D 56M 38.2S W 211.635 FT) TH N 00D 46M 26S E 64 FT TH S 89D 34M 26S W 29 FT TH S 00D 46M 26S W 69.56 FT TH WLY 22.44 FT ALG PREVIOUS ROW LN ON A 3769.72 FT RAD CURVE TO RT (CHORD BEARING S 79D 10M 24.7S W 22.439 FT) TH N 00D 25M 34S W 90.89 FT TH S 89D 34M 26S W 18 FT TH SWLY 26.13 FT ALG A 42 FT RAD CURVE TO LT (LC BEARINGS S 71D 45M 13S W 25.707 FT) TH S 53D 56M 00S W 48.01 FT TH S 36D 04M 00S E 30 FT TH S 53D 56M 00S W 56 FT TH N 36D 04M 00S W 30.09 FT TH NELY 1.57 FT ALG A 38.00 FT RAD CURVE TO LT (LC BEARING N 55D 07M 12S E 1.574 FT) TH N 53D 56M 00S E 45.46 FT TH N 00D 25M 34S W 122.52 FT TH S 89D 34M 26S W 31 FT TH N 00D 25M 34S W 182 FT TH N 89D 34M 26S E 31 FT TH N 00D 25M 34S W 22.50 FT TH N 89D 34M 26S E 12.39 FT TH N 00D 25M 34SW 396 FT TH N 89D 34M 26S E 483.59 FT ALG N LN OF S 900 FT OF SW 1/4 OF SD SEC TH S 0 Commission Meeting Date: November 22, 2016 Date: November 14, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing - Request to issue an Obsolete Property Certificate –Pacifica Muskegon, LLC– 1740 E Sherman Blvd SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Pacifica Muskegon, LLC, has requested the issuance of an Obsolete Property Certificate for their property located at 1740 E Sherman Blvd. The estimated cost for rehabilitation of this property will be $1,500,000. The applicant is eligible for a 12-year abatement because of the amount of investment. FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property taxes would be frozen at the pre- rehabilitated rate for the duration of the certificate. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the Obsolete Property Rehabilitation Exemption Certificate COMMITTEE RECOMMENDATION: None CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUTION NO. _____ A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by Pacifica Muskegon, LLC. The City Commission of the City of Muskegon hereby RESOLVES: Recitals A. The City Commission has received an Application for an Obsolete Property Rehabilitation Exemption Certificate from Pacifica Muskegon, LLC, to apply to the improvements located in an Obsolete Property Rehabilitation District established by previous resolution. B. The City of Muskegon is a qualified local governmental unit as determined by STC Bulletin No. 9 of 2000, dated July 12, 2000. C. An Obsolete Property Rehabilitation District in which the application property is located was established after a hearing on November 22, 2016. D. The taxable value of the property proposed to be exempt, plus the aggregate taxable value of properties already exempted under PA 146 of 2000 and under PA 198 of 1974, does not exceed five percent (5%) of the total taxable value of the City of Muskegon. E. In the event it is determined that the said taxable values do exceed five percent (5%), the City Commission determines further that the said exceedance will not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of any affected taxing units. F. This resolution of approval is considered by the City Commission on November 22, 2016, after a public hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date. G. The applicant, Pacifica Muskegon, LLC, is not delinquent any taxes related to the facility. H. The exemption to be granted by this resolution is for twelve (12) years and there will not be any extension available. I. All items described under “Instructions” (a) through (f) of the application for Obsolete Property Rehabilitation Exemption Certificate have been provided to the City of Muskegon, the Qualified Local Government Unit, by the applicant. J. The City Commission finds that the property for which the Obsolete Property Rehabilitation Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act 146 of 2000 in that the property, which is commercial, is functionally obsolete. The City has received from the applicant all the items required by Section 9 of the application form, being the general description of the obsolete facility, a general description of the proposed use, a description of the general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building equipment that will be part of the rehabilitated facility, a time schedule for undertaking and complete the rehabilitation, and statement of the economic advantages expected from the exemption. K. Commencement of the rehabilitation has not occurred before the establishment of the district. L. The application relates to a rehabilitation program that when completed will constitute a rehabilitated within the meaning of PA 146 of 2000 and will be situated within the Obsolete Property Rehabilitation District established by the City under PA 146 of 2000. M. Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the Certificate, have the reasonable likelihood to increase commercial activity and create employment; it will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten percent (10%) of the true cash value of the property at the commencement of the rehabilitation. N. The City Commission determines that the applicant shall have twenty-four (24) months to complete the rehabilitation. It shall be completed by November 22, 2018, or one year after the Certificate is issued, whichever occurs later. O. That notice pursuant to statute has been timely given to the applicant, the assessor for the City of Muskegon, representatives of the affected taxing units and the general public. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: 1. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City Commission hereby approves the application filed by Pacifica Muskegon, LLC, for an Obsolete Property Rehabilitation Exemption Certificate, to be effective for a period of twelve (12) years; 2. BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set forth in Attachment A, the legal description containing the facilities to be improved; 3. BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply with the representations and conditions set forth in the recitals above and in the application material submitted to the City. This resolution passed. Ayes: __________________________________________________________________ Nays: __________________________________________________________________ CITY OF MUSKEGON BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk CERTIFICATE This resolution was adopted at a meeting of the City Commission held on November 22, 2016. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By ___________________________ Ann Meisch, City Clerk ATTACHMENT A: PROPERTY DESCRIPTION CITY OF MUSKEGON SEC 34 T10N R16W PT OF S 1/2 OF SW 1/4 DESC AS FOL COM S 89D 34M 26S W 1382.00 FT (AS MEAS ALG S SEC LN & N 00D 46M 26S E 434.72 FT FROM S 1/4 COR SD SEC FOR POB TH S 89D 34M 26S W 139.73 FT TH S 00D 25M 34S E 251.83 FT TH WLY 256.18 FT ALG NLY ROW LN SHERMAN BLVD ON A 3769.72 FT RAD CURVE TO RT (CHORD BEARING S 76D 56M 38.2S W 211.635 FT) TH N 00D 46M 26S E 64 FT TH S 89D 34M 26S W 29 FT TH S 00D 46M 26S W 69.56 FT TH WLY 22.44 FT ALG PREVIOUS ROW LN ON A 3769.72 FT RAD CURVE TO RT (CHORD BEARING S 79D 10M 24.7S W 22.439 FT) TH N 00D 25M 34S W 90.89 FT TH S 89D 34M 26S W 18 FT TH SWLY 26.13 FT ALG A 42 FT RAD CURVE TO LT (LC BEARINGS S 71D 45M 13S W 25.707 FT) TH S 53D 56M 00S W 48.01 FT TH S 36D 04M 00S E 30 FT TH S 53D 56M 00S W 56 FT TH N 36D 04M 00S W 30.09 FT TH NELY 1.57 FT ALG A 38.00 FT RAD CURVE TO LT (LC BEARING N 55D 07M 12S E 1.574 FT) TH N 53D 56M 00S E 45.46 FT TH N 00D 25M 34S W 122.52 FT TH S 89D 34M 26S W 31 FT TH N 00D 25M 34S W 182 FT TH N 89D 34M 26S E 31 FT TH N 00D 25M 34S W 22.50 FT TH N 89D 34M 26S E 12.39 FT TH N 00D 25M 34SW 396 FT TH N 89D 34M 26S E 483.59 FT ALG N LN OF S 900 FT OF SW 1/4 OF SD SEC TH S 0 CITY OF MUSKEGON CONTRACT FOR TAX ABATEMENT Act 196 Public Acts of 2000 AGREEMENT between CITY OF MUSKEGON, a municipal corporation of 933 Terrace Street, Muskegon, Michigan 49441, (“City”) and Pacifica Muskegon, LLC (“Company”). Recitals: A. The Company has applied to City for the issuance of an Obsolete Property Rehabilitation Exemption Certificate pursuant to the provisions of Act 196 of the Public Acts of 2000, as amended. B. The City has determined that it is in the best interests of the taxpayers, property owners and residents of the City that this Agreement be approved and executed prior to the issuance of the requested certificate, and the City deems this Contract, together with the conditions set forth in the said Act to constitute a necessary element in the City’s determination whether or not to issue the certificate. C. The Company intends to install the project set forth in its application (“project”) which it believes qualifies for the issuance of the certificate. D. The City, provided this Agreement is executed, will determine whether to issue the certificate based upon the potential for the production of permanent jobs, the continuation or increase of economic activity, planning and zoning considerations and the City’s general plan and intentions regarding economic development. In addition to the City policy considerations and predictions that the Company’s proposed district and certificate benefit the community in those ways, the City has further determined that the contractual commitments made by the Company to thereby assist the community shall be binding on the Company and necessary to continue the tax exemption made possible by the certificate. NOW THEREFORE THE PARTIES AGREE: 1. COMPANY AGREEMENT. The Company irrevocably commits to the investment, job retention and job creation promises made in its application, a copy of which is attached hereto and incorporated herein. In particular the Company agrees: 1.1 That 100% of the jobs shall be filled and in existence with full-time employees by a date no later than two (2) years from the date of the granting of the certificate by the State Tax Commission. Page 1 1.2 The Company, by the end of two (2) years from the date of the grant of the certificate by the State Tax Commission shall have completed the investment of $1,500,000 in real property improvements as shown in the application. 1.3 That the improvements to receive the tax abatement treatment shall be completed on or before the date two (2) years from the date of granting of the certificate by the State Tax Commission. 1.4 The Company shall pay its specific taxes required by the act in a timely manner, and shall not delay payments so as to incur any penalties or interest. 1.5 The Company shall not appeal the valuation of any real or personal property at the facility to the Michigan Tax Tribunal or the State Tax Commission. 1.6 The Company shall fully cooperate with the City representatives in supplying all requested and required documentation regarding jobs, investment, the meeting of all goals and the timely installation and utilization of equipment and improvements. The City shall be entitled to inspect at reasonable hours the Company’s premises where the said improvements and equipment have been installed and where the said jobs are performed. 1.7 The Company shall maintain, during the entire period for which the tax abatement is granted, the level of jobs, production and utilization of the improvements and equipment at the site where the district has been created and for which the tax exemption has been granted. 1.8 The Company shall not cause or fail to cure the release of any hazardous substance, or the violation of any environmental law on its premises in the City. It shall report any releases to the appropriate governmental authority in a timely and complete manner, and provide copies of said report documentation to the City. It shall comply with all orders and actions of any governmental agency having authority. 1.9 The Company shall maintain the improvements so as to minimize physical or functional obsolescence. 1.10 The Company shall continue to operate its business location in the City, containing the same number of and type of jobs, for the term of the certificate. 2. AGREEMENT BY THE CITY. Provided this contract has been executed and further provided all applications to create the district and achieve the Obsolete Property Rehabilitation Exemption Certificate have been properly filed, the City shall, in a timely manner, determine in a public meeting to create the district and receive, process, and approve thereafter the Company’s application for an Obsolete Property Rehabilitation Exemption Certificate. The City may consider this contract in a meeting separate from and prior to the meeting in which the City considers the creation of the district and Page 2 approval of the application for certificate. Further, the City shall require the submission of this contract signed by the Company together with its applications, before creating the district. 3. EVENTS OF DEFAULT. The following actions or failures to comply shall be considered events of default by the Company: 3.1 Failure to meet any of the commitments set forth above. 3.2 The closing of the Company’s facilities in the City. Closing shall mean for purpose of this Agreement, the elimination of substantially all the jobs created or retained thereby, which are set forth in the Company’s application. 3.3 Failure to afford to the City the documentation and reporting required. 3.4 The failure to create or retain jobs or expend the funds on improvements as represented in the application within the times required hereby. 3.5 The bankruptcy or insolvency of the Company. 3.6 The failure to pay any and all taxes and assessments levied on the Company’s property or any other taxes, local, state or federal, including but not limited to City income taxes and the withholding of said City income taxes from employees as required by the City Income Tax Ordinance. 3.7 The performance or omission of any act which would lead to revocation under MCLA 207.565, being §15 of the Act. 3.8 The violation of any provisions, promises, commitments, considerations or covenants of this Agreement. 4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City shall have the following remedies which it may invoke without notice, except as may be reasonably required by the Company’s rights to due process: 4.1 In the event of closing as determined after investigation of the facts and a public hearing, the Company shall be immediately liable for penalties to be paid forthwith to the city as determined as follows: 4.1.1 The Company shall pay to the City for prorata distribution to the taxing units experiencing the abatement, an amount equal to the difference between the obsolete property tax which it has paid, and the total property taxes to the relevant taxing units which it would have paid, given its installations of improvements and equipment, during the years for which the certificate was in effect. Page 3 4.1.2 Immediate Revocation. The Company hereby consents to revocation to the Obsolete Property Rehabilitation Exemption Certificate before the State Tax Commission, without hearing, and the City shall submit a copy of this Agreement to the State Tax Commission in connection with its revocation procedure, giving notice that the default has occurred and immediate revocation should occur. 4.2 In the event the improvements have not been installed before the two (2) year period, in addition to the revocation procedures before the State Tax Commission, the abatement should immediately be reduced by the City proportionately, and any installations which have not been finished at the end of said two (2) year period shall not be eligible for the abatement thereafter and shall be placed on the regular tax roll. 4.3 Job Creation and Retention. In the event the promised number of jobs have not been created or retained at the end of the two (2) years after the grant of the certificate by the State Tax Commission, the abatement shall be proportionately reduced. 4.4 For other violations of this Agreement or for actions or omissions by the Company amounting to grounds for revocation by statue, the City shall recommend to the State Tax Commission immediate revocation of the certificate. 4.5 Special Assessment. For any amount due to be paid to the City, under this Section 4, the Company consents that the City shall have a personal action against the Company for the said amount, and in addition, cumulatively, and not by election, the City shall have a special assessment lien on all the property of the Company personal and real, located in the City, for the collection of the amounts due as and in the manner of property taxes and in such case the collection of the said special assessment shall be accomplished by addition by the City to the Company’s property tax statement regularly rendered. 5. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan applicable to contracts made and to be performed within the State of Michigan. 6. Counterparts. This Agreement may be executed in one or more counterparts. Notwithstanding such execution all such counterparts shall constitute one and the same Agreement. 7. Benefit. This Agreement shall be binding upon and inure to the benefit of the respective parties, their successors and personal representatives. 8. Effective Date. This Agreement shall be effective on the date the State of Michigan Tax Commission grants the company the Obsolete Property Rehabilitation Exemption Certificate. Page 4 CITY OF MUSKEGON By _________________________ Stephen J. Gawron, Mayor Date _________________________ and___________________________ Ann Meisch, Clerk Date _________________________ By___________________________ Its______________________ Date _________________________ Page 5 Commission Meeting Date: November 22, 2016 Date: November 15, 2016 To: Honorable Mayor and City Commissioners From: Finance Director RE: First Quarter 2016-17 Budget Reforecast SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2016-17 Budget Reforecast which outlines proposed changes to the budget that have come about as result of changes in revenue projections, policy priorities, labor contracts, updated economic conditions, or other factors. FINANCIAL IMPACT: A summary of first quarter proposed adjustments to the budget are as follows: • General Fund revenues are reforecast to be $115,000 lower than the original budget, largely due to lower projected income tax revenues. • General Fund expenditures are reforecast to be $40,000 higher than the original budget, primarily due to the addition of $25,000 for street light removal and $15,000 in capital for a parks reservation system. • There is some refinement of the capital projects budget resulting in an overall net decrease of $14,000 from the original budget. BUDGET ACTION REQUIRED: City commission approval of this reforecast will formally amend the City’s 2016-17 budget. STAFF RECOMMENDATION: Approval. 1Q FY2017 Budget Reforecast Page 1 of 40 City of Muskegon 2016-17 Budget Summary Summary of Budgeted Funds Projected Projected Ending Increase Beginning Fund Fund (Decrease) Fund Balance/Working Projected Projected Balance/Working Balance/Working Fund Name Capital Revenues Expenditures Capital Capital 1 General $ 6,341,657 $ 26,037,844 $ 26,191,855 $ 6,187,646 $ (154,011) 2 Major Streets 2,284,908 5,923,877 6,144,532 2,064,253 (220,655) 3 Local Streets 235,692 1,497,900 1,499,643 233,949 (1,743) 4 Farmers Market & Kitchen 242 - - - - - 5 L C Walker Arena 247,028 1,177,500 1,182,000 242,528 (4,500) 6 Criminal Forfeitures Fund 138,810 16,700 18,500 137,010 (1,800) 7 Budget Stabilization Fund 1,700,000 - - 1,700,000 - 8 Tree Replacement Fund * 1,071 - - 1,071 - 9 Brownfield Authority Fund (Betten) (1,344,403) 135,000 163,280 (1,372,683) (28,280) 10 Brownfield Authority Fund (Former Mall) 17,967 160,000 160,000 17,967 - 11 Tax Increment Finance Authority Fund 454 34,000 34,000 454 - 12 Downtown Development Authority Debt Fund 118,840 335,400 335,576 118,664 (176) 13 Local Development Finance Authority III Fund (SZ) 21,030 445,100 449,425 16,705 (4,325) 14 Public Improvement 294,399 5,261,920 4,591,550 964,769 670,370 15 State Grants 73,157 203,297 221,990 54,464 (18,693) 16 Marina & Launch Ramp 402,917 610,200 736,747 276,370 (126,547) 17 Public Service Building 614,800 1,051,834 1,138,288 528,346 (86,454) 18 Engineering Services 36,081 313,250 342,630 6,701 (29,380) 19 Equipment 699,089 2,424,700 2,915,501 208,288 (490,801) 20 General Insurance 1,702,109 4,934,000 5,283,597 1,352,512 (349,597) 21 Sewer 1,428,302 8,955,000 9,055,714 1,327,588 (100,714) 22 Water 3,379,692 7,608,250 7,552,239 3,435,703 56,011 Total All Budgeted Funds $ 18,393,600 $ 67,125,772 $ 68,017,067 $ 17,502,305 $ (891,295) * Fund to be closed out at the end of FY 2015-16. 1Q FY2017 Budget Reforecast Page 2 of 40 CITY OF MUSKEGON GENERAL FUND HISTORICAL SUMMARY Revenues & Expenditures & Fund Balance Year Transfers In Transfers Out at Year-End 2003 $ 23,328,756 $ 23,705,334 $ 2,431,418 2004 23,401,793 23,388,019 2,445,192 2005 23,732,641 23,658,227 2,519,606 2006 24,669,210 24,498,776 2,690,040 2007 25,031,403 24,800,810 2,920,633 2008 25,563,632 26,100,539 2,383,726 2009 24,105,019 24,850,082 1,638,663 2010* 16,142,764 11,742,973 6,038,454 2010-11 24,029,686 25,556,758 4,511,382 2011-12 24,126,111 23,617,448 5,020,045 2012-13 23,628,096 22,708,893 5,653,558 2013-14 23,960,758 23,818,219 5,796,097 2014-15 24,921,748 24,614,349 6,103,496 2015-16 25,856,247 25,618,086 6,341,657 Fiscal 2016-17 Budget Summary FUND BALANCE AT START OF YEAR $ 6,341,657 MEANS OF FINANCING: Taxes 15,981,000 61.4% Licenses and Permits 1,458,000 5.6% Federal Grants 124,580 0.5% State Grants 235,000 0.9% State Shared Revenue 4,002,925 15.4% Other Charges 3,231,339 12.4% Fines and Fees 387,000 1.5% Other Revenue 452,000 1.7% Other Financing Sources 166,000 0.6% 26,037,844 100.0% ESTIMATED REQUIREMENTS: Customer Value Added Activities 20,287,653 77.5% Business Value Added Activities 4,513,562 17.2% Fixed Budget Items 1,390,640 5.3% 26,191,855 100.0% ESTIMATED FUND BALANCE AT END OF YEAR $ 6,187,646 OPERATING SURPLUS / (DEFICIT) $ (154,011) * Six-month transition period to new fiscal year 1Q FY2017 Budget Reforecast Page 3 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original Available Fund Balance - BOY $ 5,796,097 $ 6,103,496 $ 6,276,642 $ 6,103,496 $ 6,103,496 $ 6,341,657 $ 65,015 Taxes 101-00000-4100 PROPERTY TAX 5,670,845 5,689,608 5,456,000 - - 5,456,000 $ - 101-00000-4101 CHARGE BACK COLLECTED - - - - - 101-00000-4102 IN LIEU OF TAX 94,117 96,649 94,000 - - 94,000 - 101-00000-4103 IFT/CFT TAX 104,247 99,363 95,000 - - 95,000 - 101-00000-4104 PROPERTY TAX SANITATION 1,686,262 1,691,947 1,636,000 - - 1,636,000 - 101-00000-4140 INCOME TAX 8,274,666 8,151,902 8,850,000 1,927,547 1,962,784 8,700,000 (150,000) $ 15,830,137 $ 15,729,469 $ 16,131,000 $ 1,927,547 $ 1,962,784 $ 15,981,000 $ (150,000) Licenses and permits 101-00000-4202 BUSINESS LICENSES & PERMITS 62,495 63,182 70,000 9,725 8,150 70,000 - 101-00000-4203 LIQUOR LICENSES & TAX REBATE 53,986 43,010 50,000 34,201 33,079 50,000 - 101-00000-4204 CABLE TV LICENSES OR FEES 369,965 372,117 350,000 - - 350,000 - 101-00000-4205 HOUSING LICENSES (5,065) (50) (1,141) (90) - 101-00000-4206 INSPECTION FEE 126 162 - - - 101-00000-4207 CEMETERY-BURIAL PERMITS 83,922 81,095 82,000 24,475 21,580 82,000 - 101-00000-4208 BUILDING PERMITS 333,370 371,693 351,000 170,282 102,715 401,000 50,000 101-00000-4209 ELECTRICAL PERMITS 88,524 84,912 78,000 31,573 22,987 88,000 10,000 101-00000-4210 PLUMBING PERMITS 29,269 34,316 36,000 10,231 10,820 36,000 - 101-00000-4211 HEATING PERMITS 67,929 69,071 66,000 22,540 18,082 66,000 - 101-00000-4212 POLICE GUN REGISTRATION 75 - - - - 101-00000-4213 RENTAL PROPERTY REGISTRATION 150,716 152,268 160,000 36,661 38,160 160,000 - 101-00000-4221 VACANT BUILDING FEE 117,258 165,589 150,000 23,580 45,918 150,000 - 101-00000-4224 TEMPORARY LIQUOR LICENSE 9,150 5,780 5,000 1,060 1,975 5,000 - $ 1,361,720 $ 1,443,145 $ 1,398,000 $ 363,187 $ 303,376 $ 1,458,000 $ 60,000 Federal grants 101-00000-4300 FEDERAL GRANTS 84,296 72,521 124,580 - - 124,580 - $ 84,296 $ 72,521 $ 124,580 $ - $ - $ 124,580 $ - State grants 101-00000-4400 STATE GRANTS 14,546 91,415 15,000 10,628 - 15,000 - 101-00000-4405 STATE REPLACEMENT REV FOR PPT - 64,536 220,000 - 220,000 - $ 14,546 $ 155,951 $ 235,000 $ 10,628 $ - $ 235,000 $ - State shared revenue 101-00000-4502 STATE SALES TAX CONSTITUTIONAL 2,772,442 2,955,900 2,886,189 - - 2,886,189 - 101-00000-4503 STATE CVTRS PAYMENTS 1,116,736 930,614 1,116,736 - - 1,116,736 - $ 3,889,178 $ 3,886,514 $ 4,002,925 $ - $ - $ 4,002,925 $ - Other charges for sales and services 101-00000-4161 STREETLIGHTING SPECIAL ASSESSMENT - - 270,000 - $ - 270,000 - 101-00000-4601 CITY SERVICE FEE FOR ENTERPRISE FUNDS - 449,292 449,290 112,323 112,323 449,290 - 101-00000-4603 TAX COLLECTION FEE 338,718 339,353 290,000 35,917 36,082 290,000 - 101-00000-4604 GARBAGE COLLECTION 45,204 43,614 41,000 10,773 8,623 41,000 - 101-00000-4606 ADMINISTRATION FEES 250,000 310,000 310,000 77,500 77,500 310,000 - 101-00000-4607 REIMBURSEMENT ELECTIONS 14,796 26,703 - 94 25 - - 101-00000-4608 INDIRECT COST ALLOCATION 958,040 1,025,618 1,010,456 252,614 256,404 1,010,456 - 101-00000-4609 PROCUREMENT CARD REBATE 42,505 38,574 38,500 - - 38,500 - 101-00000-4611 SPECIAL EVENTS REIMBURSEMENT 69,791 30,877 37,000 50,747 41,026 37,000 - 1Q FY2017 Budget Reforecast Page 4 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 101-00000-4612 CEMETERY SALE OF LOTS 19,258 25,987 20,000 3,675 7,625 20,000 - 101-00000-4614 REIMBURSEMENT LOT CLEAN UP 15,447 6,131 5,000 2,338 627 5,000 - 101-00000-4615 POLICE DEPARTMENT INCOME 103,900 97,936 99,000 18,089 22,984 99,000 - 101-00000-4617 FIRE DEPARTMENT INCOME 2,110 4,413 4,500 6,560 2,415 4,500 - 101-00000-4619 MISC. SALES AND SERVICES 16,651 17,635 1,500 25 100 1,500 - 101-00000-4620 FIRE PROTECTION-STATE PROP 80,227 81,250 81,000 - - 81,000 - 101-00000-4621 ZONING & ENCROACHMENT FEES 11,680 11,962 12,000 5,895 4,662 12,000 - 101-00000-4622 MISC. CLERK FEES 4,219 16,789 3,000 260 15,081 3,000 - 101-00000-4624 TAX ABATEMENT APPLICATION FEES 3,822 600 1,000 525 325 1,000 - 101-00000-4625 MISC. TREAS. FEES 40,404 55,948 60,000 6,214 5,988 60,000 - 101-00000-4631 REIMBURSEMENT SCHOOL OFFICER 20,259 20,867 21,493 4,776 - 21,493 - 101-00000-4633 OBSOLETE PROPERTY FEES - 1,000 1,000 - - 101-00000-4634 PASSPORTS 12,025 27,199 40,000 10,937 2,765 40,000 - 101-00000-4635 START UP CHARGE/REFUSE 6,765 8,633 7,000 2,530 2,420 7,000 - 101-00000-4636 REFUSE BAG & BULK SALES 28,452 30,514 25,000 9,446 8,796 25,000 - 101-00000-4637 APPLIANCE STICKER 100 79 100 25 25 100 - 101-00000-4642 LIEN LOOK UPS 13,915 13,795 12,000 2,340 2,600 12,000 - 101-00000-4648 FALSE ALARM FEES/POLICE 10,020 6,435 10,000 285 1,815 10,000 - 101-00000-4649 CEMETERY-MISC. INCOME 15,462 17,128 15,000 9,216 6,389 15,000 - 101-00000-4651 REIMBURSEMENT LOT MOWING 18,185 9,728 7,000 1,064 1,749 7,000 - 101-00000-4652 MUSKEGON HEIGHTS ZONING 4,900 11,095 6,000 1,995 - 6,000 - 101-00000-4654 FIRE RESPONSE FEE 6,500 7,000 5,000 - 2,500 5,000 - 101-00000-4656 SITE PLAN REVIEW 4,600 8,300 5,000 1,900 2,500 5,000 - 101-00000-4657 COLUMBARIUM NICHE 1,850 - - - - 101-00000-4658 IMPOUND FEES 43,850 34,005 34,000 7,850 10,550 34,000 - 101-00000-4660 MISC RECREATION INCOME 4,844 5,201 4,700 925 625 4,700 - 101-00000-4661 LEASE GREAT LAKES NAVAL MEMORIAL 15,000 7,500 15,000 - 3,750 15,000 - 101-00000-4663 FLEA MARKET AT FARMERS MARKET 27,352 25,580 26,000 9,255 13,222 26,000 - 101-00000-4664 FARMERS MARKET INCOME 75,731 70,814 58,000 34,878 30,713 58,000 - 101-00000-4665 LEASE BILLBOARDS 6,800 6,800 6,800 - - 6,800 - 101-00000-4669 SMITH RYERSON 4,320 15,290 12,000 3,028 4,400 12,000 - 101-00000-4670 PICNIC SHELTER 26,000 19,212 22,000 5,434 3,363 22,000 - 101-00000-4671 MCGRAFT PARK 51,051 76,761 45,000 3,295 1,985 45,000 - 101-00000-4672 SAFEBUILT LOT MOWING 43,369 51,198 45,000 14,651 22,611 45,000 - 101-00000-4673 RENTAL - CENTRAL DISPATCH 46,666 44,695 28,500 7,131 8,177 28,500 - 101-00000-4674 RENTAL - CITY HALL 25,220 26,870 26,000 7,205 6,905 26,000 - 101-00000-4675 RENTALS - BEACH - - - - - 101-00000-4676 SAFEBUILT - TRASH PICKUP 21,203 26,813 18,000 11,618 5,564 18,000 - 101-00000-4677 RENT - 1,000 400 - - 101-00000-4678 PLANNING DEPT ENFORCEMENT 100 2,012 350 350 - 101-00000-4690 KITCHEN 242 RENTAL - 227 - - - 101-00000-4693 FARMERS MARKET EVENT RENTAL 1,000 - 500 750 500 500 - 101-00000-4694 FARMERS MARKET EBT FEES 466 3,940 3,000 1,095 2,194 3,000 - $ 2,552,777 $ 3,162,373 $ 3,231,339 $ 736,928 $ 738,258 $ 3,231,339 $ - 1Q FY2017 Budget Reforecast Page 5 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original Fines and fees 101-00000-4701 INCOME TAX-PENALTY & INTEREST 198,995 204,792 170,000 31,825 31,380 170,000 - 101-00000-4702 DELINQUENT FEES 14,570 35,081 25,000 - - 25,000 - 101-00000-4703 INTEREST/LATE INVOICES - - - - - 101-00000-4704 PENALTIES/INTEREST/FINES 2,047 1,835 2,000 482 431 2,000 - 101-00000-4706 LATE FEE ON INVOICES OVER 45 DAYS 1,722 2,417 1,500 358 230 1,500 - 101-00000-4751 CIVIL INFRACTIONS 8,900 9,890 8,500 3,828 1,750 8,500 - 101-00000-4754 TRAFFIC FINES & FEES 98,052 73,390 75,000 12,932 15,870 75,000 - 101-00000-4755 COURT FEES 126,913 129,764 105,000 28,758 24,294 105,000 - $ 451,199 $ 457,169 $ 387,000 $ 78,183 $ 73,955 $ 387,000 $ - Other revenue 101-00000-4800 MISC. & SUNDRY 10,052 15,184 7,500 8,605 4,135 7,500 - 101-00000-4802 REIMB:DEMOS AND BOARD-UPS 5,270 26,353 25,000 6,535 175 25,000 - 101-00000-4803 CDBG PROGRAM REIMBURSEMENTS 347,061 396,487 325,000 - - 325,000 - 101-00000-4805 CONTRIBUTIONS 9,400 7,150 8,000 - 400 8,000 - 101-00000-4806 BIKE/PROPERTY AUCTIONS-POLICE 1,676 832 1,500 894 - 1,500 - 101-00000-4808 SALE OF PROPERTY AND EQUIPMENT - - - - - 101-00000-4811 FISHERMANS LANDING REIMBURSEMENT 13,951 11,320 - - - - - 101-00000-4814 PROMOTIONAL PRODUCTS 3,822 24,051 20,000 6,916 16,941 20,000 - 101-00000-4818 RECOVERY OF BAD DEBT 1,782 2,934 1,500 82 730 1,500 - 101-00000-4821 CONTRIBUTIONS/GRANTS 10,000 4,500 10,000 - - 10,000 - 101-00000-4825 CONTRIBUTIONS - VETERAN'S PARK MAINT 19,081 18,504 18,500 - - 18,500 - 101-00000-4829 COMMUNITY FOUNDATION GRANT - MCGRAFT PAR 5,369 5,596 - - - 101-00000-4832 CONSUMERS ENERGY ESSENTIAL SERVICES 100,000 100,000 50,000 25,000 100,000 25,000 (25,000) 101-00000-4841 GRANT: COMMUNITY FOUNDATION 12,600 26,500 10,000 - - 10,000 - $ 540,064 $ 639,411 $ 477,000 $ 48,032 $ 122,381 $ 452,000 $ (25,000) Interest & Operating Transfers 101-00000-4902 OP. TRANS FROM SPECIAL REVENUE 153,274 153,000 120,000 - - 120,000 - 101-00000-4903 OP. TRANS FROM DEBT SERVICE 38,000 36,000 34,000 8,500 9,500 34,000 - 101-00000-4904 OP. TRANS FROM CAPITAL PROJECTS - 35,132 - - - 101-00000-4906 OP. TRANS FROM INTERNAL SERVICE FUND - - - - - 101-00000-4908 OP. TRANS FROM NONEXPENDABLE - - - - - 101-00000-4970 INTEREST INCOME 19,477 92,890 12,000 30,826 5,887 12,000 - 101-00000-4971 UNREALIZED GAIN (LOSS) ON INVESTMENT (12,892) (7,428) (49,078) 3,540 - 101-00000-4980 SALE OF FIXED ASSETS - 100 - - - $ 197,859 $ 309,694 $ 166,000 $ (9,752) $ 18,927 $ 166,000 $ - Total general fund revenues and other sources $ 24,921,776 $ 25,856,247 $ 26,152,844 $ 3,154,753 $ 3,219,681 $ 26,037,844 $ (115,000) 1Q FY2017 Budget Reforecast Page 6 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original I. Customer Value Added Activities 40301 Police Department 5100 SALARIES & BENEFITS 7,893,152 7,938,999 8,747,264 1,886,836 1,647,128 8,747,264 - 5200 SUPPLIES 90,188 87,679 84,281 26,125 11,965 84,281 - 5300 CONTRACTUAL SERVICES 881,929 904,920 910,379 243,805 212,243 910,379 - 5400 OTHER EXPENSES 14,928 24,675 22,500 4,395 7,702 22,500 - 5700 CAPITAL OUTLAYS 42,347 7,064 15,400 4,131 2,959 15,400 - $ 8,922,544 $ 8,963,337 $ 9,779,824 $ 2,165,292 $ 1,881,997 $ 9,779,824 $ - $ 8,922,544 $ 8,963,337 $ 9,779,824 $ 2,165,292 $ 1,881,997 $ 9,779,824 $ - 50336 Fire Department 5100 SALARIES & BENEFITS 3,423,126 3,570,031 3,667,932 875,355 744,660 3,667,932 - 5200 SUPPLIES 160,968 169,633 150,000 21,077 24,866 150,000 - 5300 CONTRACTUAL SERVICES 156,543 107,645 106,210 19,430 15,849 106,210 - 5400 OTHER EXPENSES 6,356 3,426 7,100 2,771 684 7,100 - 5700 CAPITAL OUTLAYS 66,631 67,990 5,930 746 6,786 5,930 - $ 3,813,624 $ 3,918,725 $ 3,937,172 $ 919,379 $ 792,845 $ 3,937,172 $ - 50338 New Central Fire Station 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - 3,510 - - 3,510 - - 5300 CONTRACTUAL SERVICES 72,702 64,857 75,000 5,254 9,606 75,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - 9,602 - - - - - $ 72,702 $ 77,969 $ 75,000 $ 5,254 $ 13,116 $ 75,000 $ - 50387 Fire Safety Inspections 5100 SALARIES & BENEFITS - 1,597 - - 1,597 - - 5200 SUPPLIES 11,117 11,404 - 2,176 2,523 - - 5300 CONTRACTUAL SERVICES 443,734 465,888 485,000 102,901 90,827 485,000 - 5400 OTHER EXPENSES - 18 - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 454,851 $ 478,907 $ 485,000 $ 105,077 $ 94,947 $ 485,000 $ - $ 4,341,177 $ 4,475,601 $ 4,497,172 $ 1,029,710 $ 900,908 $ 4,497,172 $ - 60523 General Sanitation 5100 SALARIES & BENEFITS 19,530 23,639 25,704 5,371 4,605 25,704 - 5200 SUPPLIES - - - - - - - 5300 CONTRACTUAL SERVICES 1,570,550 1,581,754 1,795,000 179,932 261,271 1,795,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - 5900 OTHER FINANCING USES - - - - - - - $ 1,590,080 $ 1,605,393 $ 1,820,704 $ 185,303 $ 265,876 $ 1,820,704 $ - 1Q FY2017 Budget Reforecast Page 7 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 60550 Stormwater Management 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - - - - - - - 5300 CONTRACTUAL SERVICES 13,365 13,755 10,000 - - 10,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 13,365 $ 13,755 $ 10,000 $ - $ - $ 10,000 $ - 60448 Streetlighting 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - 12,900 - - 6,450 - - 5300 CONTRACTUAL SERVICES 623,463 553,843 575,000 42,132 103,929 600,000 25,000 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 623,463 $ 566,743 $ 575,000 $ 42,132 $ 110,379 $ 600,000 $ 25,000 60707 Senior Citizen Transit 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - - - - - - - 5300 CONTRACTUAL SERVICES - - - - - - - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ - $ - $ - $ - $ - $ - $ - 60446 Community Event Support 5100 SALARIES & BENEFITS 17,778 15,154 16,536 12,730 6,790 16,536 - 5200 SUPPLIES 416 787 1,200 75 453 1,200 - 5300 CONTRACTUAL SERVICES 6,141 3,483 10,000 5,000 2,248 10,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 24,335 $ 19,424 $ 27,736 $ 17,805 $ 9,491 $ 27,736 $ - 70751 Parks Maintenance 5100 SALARIES & BENEFITS 335,403 427,560 515,509 108,258 85,017 515,509 - 5200 SUPPLIES 59,549 85,098 90,450 25,180 20,565 90,450 - 5300 CONTRACTUAL SERVICES 606,511 766,449 707,343 257,967 225,322 707,343 - 5400 OTHER EXPENSES 343 77 1,000 - - 1,000 - 5700 CAPITAL OUTLAYS 5,893 4,912 5,000 30 588 5,000 - $ 1,007,699 $ 1,284,096 $ 1,319,302 $ 391,435 $ 331,492 $ 1,319,302 $ - 1Q FY2017 Budget Reforecast Page 8 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 70757 Mc Graft Park Maintenance 5100 SALARIES & BENEFITS 4,632 19,806 23,510 1,902 6,613 23,510 - 5200 SUPPLIES 14,818 6,097 6,500 1,866 3,557 6,500 - 5300 CONTRACTUAL SERVICES 24,215 30,716 30,750 8,579 11,547 30,750 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS 310 350 8,000 - - 8,000 - $ 43,975 $ 56,969 $ 68,760 $ 12,347 $ 21,717 $ 68,760 $ - 70756 Municipal Marina 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - - - - - - - 5300 CONTRACTUAL SERVICES 214 - - - - - - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 214 $ - $ - $ - $ - $ - $ - 70771 Forestry 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES 26 - - - - - - 5300 CONTRACTUAL SERVICES - - - - - - - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 26 $ - $ - $ - $ - $ - $ - 70276 Cemeteries Maintenance 5100 SALARIES & BENEFITS 89,871 76,375 103,711 19,218 16,689 103,711 - 5200 SUPPLIES 5,387 9,719 8,800 3,471 4,470 8,800 - 5300 CONTRACTUAL SERVICES 301,530 320,285 311,540 101,884 122,031 311,540 - 5400 OTHER EXPENSES - 65 - - - - - 5700 CAPITAL OUTLAYS 1,841 - 1,450 17 - 1,450 - $ 398,629 $ 406,444 $ 425,501 $ 124,590 $ 143,190 $ 425,501 $ - 70585 Parking Operations 5100 SALARIES & BENEFITS 905 2,433 2,555 158 - 2,555 - 5200 SUPPLIES 521 225 - - - - - 5300 CONTRACTUAL SERVICES 4,409 2,951 4,000 223 702 4,000 - 5400 OTHER EXPENSES 6,777 - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 12,612 $ 5,609 $ 6,555 $ 381 $ 702 $ 6,555 $ - 70357 Graffiti Removal 5100 SALARIES & BENEFITS 2,284 815 4,257 - 240 4,257 - 5200 SUPPLIES 1,332 15 3,200 - 15 3,200 - 5300 CONTRACTUAL SERVICES 179 271 - - 100 - - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 3,795 $ 1,101 $ 7,457 $ - $ 355 $ 7,457 $ - 1Q FY2017 Budget Reforecast Page 9 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 70863 Farmers' Market & Flea Market 5100 SALARIES & BENEFITS 40,832 49,303 40,000 7,602 8,519 40,000 - 5200 SUPPLIES 7,974 7,501 7,500 927 856 7,500 - 5300 CONTRACTUAL SERVICES 96,354 119,184 85,000 13,459 23,803 85,000 - 5400 OTHER EXPENSES 1,004 - 2,500 43 - 2,500 - 5700 CAPITAL OUTLAYS - 225 15,000 482 - 15,000 - $ 146,164 $ 176,213 $ 150,000 $ 22,513 $ 33,178 $ 150,000 $ - 70865 Farmers' Market EBT Program 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES 841 - - - - - - 5300 CONTRACTUAL SERVICES 180 - 2,000 - - 2,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 1,021 $ - $ 2,000 $ - $ - $ 2,000 $ - 70867 Farmers' Market USDA Grant 5100 SALARIES & BENEFITS - 706 - 1,105 - - - 5200 SUPPLIES - 2,117 - - - - - 5300 CONTRACTUAL SERVICES - 9,178 65,000 342 - 65,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ - $ 12,001 $ 65,000 $ 1,447 $ - $ 65,000 $ - $ 3,865,378 $ 4,147,748 $ 4,478,015 $ 797,953 $ 916,380 $ 4,503,015 $ 25,000 1Q FY2017 Budget Reforecast Page 10 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 70775 General Recreation 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - - 200 - - 200 - 5300 CONTRACTUAL SERVICES 97,212 126,580 100,300 41,317 33,065 100,300 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 97,212 $ 126,580 $ 100,500 $ 41,317 $ 33,065 $ 100,500 $ - 80387 Environmental Services 5100 SALARIES & BENEFITS 129,144 151,364 164,058 38,272 31,540 164,058 - 5200 SUPPLIES 5,472 3,444 8,300 574 959 8,300 - 5300 CONTRACTUAL SERVICES 864,793 858,698 975,724 79,278 163,140 975,724 - 5400 OTHER EXPENSES 689 632 1,000 58 - 1,000 - 5700 CAPITAL OUTLAYS 69 1,922 3,500 43 1,150 3,500 - $ 1,000,167 $ 1,016,060 $ 1,152,582 $ 118,225 $ 196,789 $ 1,152,582 $ - $ 1,097,379 $ 1,142,640 $ 1,253,082 $ 159,542 $ 229,854 $ 1,253,082 $ - 10875 Other - Support to Outside Agencies MUSKEGON AREA TRANSIT (MATS) 78,782 87,074 95,400 - 20,732 95,400 - NEIGHBORHOOD ASSOCIATION GRANTS 21,436 15,750 21,000 750 750 21,000 - MUSKEGON AREA FIRST 45,566 45,566 45,660 11,392 11,392 45,660 - VETERANS MEMORIAL DAY COSTS 5,862 5,682 7,000 - - 7,000 - COMMUNITY FOUNDATION FOR SKATE PARK - 10,000 - - - - - DOWNTOWN MUSKEGON NOW 112,104 90,000 75,000 - - 75,000 - DOWNTOWN BUSINESS IMPROVEMENT DISTRICT - 10,000 - - - - - LAKESIDE BUSINESS DISTRICT 2,500 2,500 2,500 - - 2,500 - 211 SERVICE 2,500 2,500 2,500 - - 2,500 - MLK DIVERSITY PROGRAM 1,000 1,000 2,000 - - 2,000 - MUSKEGON AREA LABOR MANAGEMENT (MALMC) 1,000 1,000 1,000 - 1,000 1,000 - POUND BUDDIES - 2,500 2,500 2,500 - 2,500 - Support To Outside Agencies $ 270,750 $ 273,572 $ 254,560 $ 14,642 $ 33,874 $ 254,560 $ - $ 270,750 $ 273,572 $ 254,560 $ 14,642 $ 33,874 $ 254,560 $ - Total Customer Value Added Activities $ 18,497,228 $ 19,002,898 $ 20,262,653 $ 4,167,139 $ 3,963,013 $ 20,287,653 $ 25,000 As a Percent of Total General Fund Expenditures 75.1% 74.1% 77.5% 78.6% 77.5% 77.5% 62.5% 1Q FY2017 Budget Reforecast Page 11 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original II. Business Value Added Activities 10101 City Commission 5100 SALARIES & BENEFITS 69,185 69,531 74,698 16,234 14,064 74,698 - 5200 SUPPLIES 96 9,165 1,000 1 2 1,000 - 5300 CONTRACTUAL SERVICES 1,035 12,982 2,000 11,431 84 2,000 - 5400 OTHER EXPENSES 765 2,490 2,500 1,642 146 2,500 - 5700 CAPITAL OUTLAYS 960 940 1,500 240 240 1,500 - $ 72,041 $ 95,108 $ 81,698 $ 29,548 $ 14,536 $ 81,698 $ - 10102 City Promotions & Public Relations 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES 523 2,104 4,000 3,170 988 4,000 - 5300 CONTRACTUAL SERVICES 39,172 59,380 46,000 7,263 21,687 46,000 - 5400 OTHER EXPENSES 364 2,396 - - 113 - - 5700 CAPITAL OUTLAYS - - - - - - - $ 40,059 $ 63,880 $ 50,000 $ 10,433 $ 22,788 $ 50,000 $ - 10172 City Manager 5100 SALARIES & BENEFITS 218,550 239,362 259,295 56,901 46,921 259,295 - 5200 SUPPLIES 1,698 3,603 1,400 219 1,334 1,400 - 5300 CONTRACTUAL SERVICES 7,823 26,161 15,000 8,246 8,678 15,000 - 5400 OTHER EXPENSES 4,646 10,627 3,000 545 5,004 3,000 - 5700 CAPITAL OUTLAYS 268 204 2,000 - 45 2,000 - $ 232,985 $ 279,957 $ 280,695 $ 65,911 $ 61,982 $ 280,695 $ - 10145 City Attorney 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - 880 - - - - - 5300 CONTRACTUAL SERVICES 314,957 351,108 350,000 81,403 92,681 350,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 314,957 $ 351,988 $ 350,000 $ 81,403 $ 92,681 $ 350,000 $ - $ 660,042 $ 790,933 $ 762,393 $ 187,295 $ 191,987 $ 762,393 $ - 20228 Affirmative Action 5100 SALARIES & BENEFITS 75,978 90,691 98,892 19,963 18,847 98,892 - 5200 SUPPLIES 185 247 750 60 13 750 - 5300 CONTRACTUAL SERVICES 1,264 1,167 2,027 189 157 2,027 - 5400 OTHER EXPENSES 456 2,078 800 150 867 800 - 5700 CAPITAL OUTLAYS - 59 1,000 - 39 1,000 - $ 77,883 $ 94,242 $ 103,469 $ 20,362 $ 19,923 $ 103,469 $ - 1Q FY2017 Budget Reforecast Page 12 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 20215 City Clerk & Elections 5100 SALARIES & BENEFITS 290,903 302,055 325,256 84,056 59,222 325,256 - 5200 SUPPLIES 38,172 32,917 34,460 13,557 4,349 34,460 - 5300 CONTRACTUAL SERVICES 43,116 23,564 22,880 2,225 5,875 22,880 - 5400 OTHER EXPENSES 3,056 5,864 6,875 1,357 937 6,875 - 5700 CAPITAL OUTLAYS 3,702 1,594 2,500 1,300 - 2,500 - $ 378,949 $ 365,994 $ 391,971 $ 102,495 $ 70,383 $ 391,971 $ - 20220 Civil Service 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES 495 - 500 424 - 500 - 5300 CONTRACTUAL SERVICES 94,970 114,436 98,000 15,203 22,321 98,000 - 5400 OTHER EXPENSES 2,034 2,783 2,800 - - 2,800 - 5700 CAPITAL OUTLAYS - - - - - - - $ 97,499 $ 117,219 $ 101,300 $ 15,627 $ 22,321 $ 101,300 $ - $ 554,331 $ 577,455 $ 596,740 $ 138,484 $ 112,627 $ 596,740 $ - 30202 Finance Administration 5100 SALARIES & BENEFITS 344,660 375,411 391,274 92,656 73,927 391,274 - 5200 SUPPLIES 2,726 2,875 2,625 297 315 2,625 - 5300 CONTRACTUAL SERVICES 61,170 66,241 65,562 5,400 7,652 65,562 - 5400 OTHER EXPENSES 961 550 850 378 175 850 - 5700 CAPITAL OUTLAYS 1,171 - 1,500 299 - 1,500 - $ 410,688 $ 445,077 $ 461,811 $ 99,030 $ 82,069 $ 461,811 $ - 30209 Assessing Services 5100 SALARIES & BENEFITS 3,086 3,245 4,000 101 487 4,000 - 5200 SUPPLIES - - - - - - - 5300 CONTRACTUAL SERVICES 295,099 291,100 323,000 80,000 72,606 323,000 - 5400 OTHER EXPENSES 105 311 - - - - - 5700 CAPITAL OUTLAYS - - - - - - - $ 298,290 $ 294,656 $ 327,000 $ 80,101 $ 73,093 $ 327,000 $ - 30805 Arena Administration 5100 SALARIES & BENEFITS - - - - - - - 5200 SUPPLIES - - - - - - - 5300 CONTRACTUAL SERVICES 372,198 (409) 238,000 - 120 238,000 - 5400 OTHER EXPENSES - - - - - - - 5700 CAPITAL OUTLAYS 1,415 1,353 1,600 - - 1,600 - 5900 OTHER FINANCING USES - 235,000 - - - - - $ 373,613 $ 235,944 $ 239,600 $ - $ 120 $ 239,600 $ - 1Q FY2017 Budget Reforecast Page 13 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 30205 Income Tax Administration 5100 SALARIES & BENEFITS 225,004 229,730 258,241 57,739 48,006 258,241 - 5200 SUPPLIES 11,870 11,328 10,760 947 1,147 10,760 - 5300 CONTRACTUAL SERVICES 76,675 67,953 70,550 8,065 11,369 70,550 - 5400 OTHER EXPENSES 694 637 1,000 82 - 1,000 - 5700 CAPITAL OUTLAYS 1,148 170 2,500 540 - 2,500 - $ 315,391 $ 309,818 $ 343,051 $ 67,373 $ 60,522 $ 343,051 $ - 30253 City Treasurer 5100 SALARIES & BENEFITS 365,147 364,615 422,005 95,068 77,650 422,005 - 5200 SUPPLIES 70,943 71,970 81,200 12,566 12,575 81,200 - 5300 CONTRACTUAL SERVICES 119,966 119,861 108,550 9,450 27,455 108,550 - 5400 OTHER EXPENSES 953 823 1,000 - - 1,000 - 5700 CAPITAL OUTLAYS 617 1,071 - 557 - - - $ 557,626 $ 558,340 $ 612,755 $ 117,641 $ 117,680 $ 612,755 $ - 30248 Information Systems Administration 5100 SALARIES & BENEFITS 334,010 356,096 382,942 89,142 70,337 382,942 - 5200 SUPPLIES 234 582 1,513 68 - 1,513 - 5300 CONTRACTUAL SERVICES 40,213 31,193 49,744 22,010 22,466 49,744 - 5400 OTHER EXPENSES 1,062 5,124 16,024 200 4,655 16,024 - 5700 CAPITAL OUTLAYS 38,699 66,380 22,894 2,379 8,459 22,894 - $ 414,218 $ 459,375 $ 473,117 $ 113,799 $ 105,917 $ 473,117 $ - $ 2,369,826 $ 2,303,210 $ 2,457,334 $ 477,944 $ 439,401 $ 2,457,334 $ - 60265 City Hall Maintenance 5100 SALARIES & BENEFITS 30,149 33,042 40,275 7,867 7,552 40,275 - 5200 SUPPLIES 13,128 15,840 17,875 2,673 3,183 17,875 - 5300 CONTRACTUAL SERVICES 183,990 160,963 209,450 20,075 33,424 209,450 - 5400 OTHER EXPENSES - - 500 - - 500 - 5700 CAPITAL OUTLAYS (562) 11,425 11,900 2,396 5,700 11,900 - $ 226,705 $ 221,270 $ 280,000 $ 33,011 $ 49,859 $ 280,000 $ - $ 226,705 $ 221,270 $ 280,000 $ 33,011 $ 49,859 $ 280,000 $ - 1Q FY2017 Budget Reforecast Page 14 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 80400 Planning, Zoning and Economic Development 5100 SALARIES & BENEFITS 317,112 376,323 371,947 101,771 71,227 371,947 - 5200 SUPPLIES 3,042 3,684 3,500 487 492 3,500 - 5300 CONTRACTUAL SERVICES 51,125 27,080 34,148 3,620 2,940 34,148 - 5400 OTHER EXPENSES 1,871 3,022 4,000 105 632 4,000 - 5700 CAPITAL OUTLAYS 508 12,158 3,500 350 5,447 3,500 - $ 373,658 $ 422,267 $ 417,095 $ 106,333 $ 80,738 $ 417,095 $ - $ 373,658 $ 422,267 $ 417,095 $ 106,333 $ 80,738 $ 417,095 $ - Total Business Value Added Activities $ 4,184,562 $ 4,315,135 $ 4,513,562 $ 943,067 $ 874,612 $ 4,513,562 $ - As a Percent of Total General Fund Expenditures 17.0% 16.8% 17.3% 17.8% 17.1% 17.2% 0.0% III. Fixed Budget Items 30999 Transfers To Other Funds MAJOR STREET FUND 500,000 - - - - - - LOCAL STREET FUND 300,000 - 50,000 - - 50,000 - L.C. WALKER ARENA FUND - 250,000 - - - - - LDFA DEBT SERVICE FUND (SMARTZONE) 227,000 265,000 275,000 68,750 62,500 275,000 - DDA DEBT SERVICE FUND 70,000 175,000 175,000 43,750 43,750 175,000 - PUBLIC IMPROVEMENT FUND - 750,000 - - - - - COMM DEV BLK GRANT FUND - 8,164 - - - - - ENGINEERING SERVICES FUND 75,000 75,000 13,000 - - 13,000 - GENERAL INSURANCE FUND 14,023 - - - - - - $ 1,186,023 $ 1,523,164 $ 513,000 $ 112,500 $ 106,250 $ 513,000 $ - 1Q FY2017 Budget Reforecast Page 15 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Increase Original Budget Actual to Date Actual to Date 1Q Reforecast (Decrease) From Actual FY2015 Actual FY2016 Estimate FY2017 9/30/16 9/30/15 FY2017 Original 30851 General Insurance 289,370 261,419 270,640 - - 270,640 $ - 30906 Debt Retirement 281,935 277,426 167,000 81,547 170,673 167,000 - 10891 Contingency and Bad Debt Expense 80,038 44,388 100,000 - - 100,000 - 90000 Major Capital Improvements 95,201 203,258 325,000 600 900 340,000 91302 VETERAN'S PARK UPGRADES 45,000 - - - - - - 91303 PARKS IMPROVEMENTS: PM & BEUKEMA - - 20,000 - - 20,000 - 91116 ADA COMPLIANCE PROJECT - 291 15,000 - - 15,000 - 91120 VOIP PHONE SYSTEM 19,400 19,400 - - - - - 91405 FIRE STATION # 4 ROOF REPLACEMENT 5,798 - - - - - - 91412 CITY HALL REPLACEMENT WINDOWS 5,100 5,400 20,000 600 900 20,000 - STREET LIGHTS CONVERSION TO LED, CONSUMERS - - 270,000 - - 270,000 - 91512 REPAIRS TO BOARDWALK @ KRUSE PARK - 22,843 - - - - - 91505 MARSH FIELD, BLEACHER UPGRADES, ETC. - 23,256 - - - - - 91508 LED CONVERSION DOWNTOWN - 114,705 - - - - - PARKS RESERVATION SYSTEM - - - - - 15,000 15,000 99152 DOJ JAG GRANT MUSKEGON HEIGHTS 19,903 17,363 - - - - - Total Fixed-Budget Items $ 1,932,567 $ 2,309,655 $ 1,375,640 $ 194,647 $ 277,823 $ 1,390,640 $ 15,000 As a Percent of Total General Fund Expenditures 7.9% 9.0% 5.3% 3.7% 5.4% 5.3% 37.5% Total General Fund $ 24,614,357 $ 25,627,688 $ 26,151,855 $ 5,304,853 $ 5,115,448 $ 26,191,855 $ 40,000 Recap: Total General Fund By Line Item Expenditure Classification 5100 Salaries & Benefits $ 14,230,441 $ 14,717,883 $ 15,939,861 $ 3,578,305 $ 3,041,638 $ 15,939,861 $ - 5200 Operating Supplies 501,721 555,324 520,014 115,940 104,587 520,014 - 5300 Contractual Services 8,026,917 7,818,228 8,408,357 1,390,725 1,639,072 8,433,357 25,000 5400 Other Expenses 127,102 109,986 173,449 11,726 20,915 173,449 - 5700 Capital Outlays 260,218 381,075 430,174 14,110 32,313 445,174 15,000 5900 All Other Financing Uses 1,467,958 2,035,590 680,000 194,047 276,923 680,000 - Total General Fund $ 24,614,357 $ 25,618,086 $ 26,151,855 $ 5,304,853 $ 5,115,448 $ 26,191,855 $ 40,000 1Q FY2017 Budget Reforecast Page 16 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 202 Major Streets and State Trunklines Fund Available Fund Balance - BOY $ 1,352,922 $ 2,252,721 $ 1,615,274 $ 2,284,908 $ 2,252,721 $ 2,284,908 $ 669,634 Means of Financing Special assessments $ 64,171 $ 46,603 $ 50,000 $ - $ - $ 50,000 $ - Federal & state grants 3,422,807 2,138,315 1,385,000 - - 1,385,000 - State shared revenue 2,965,884 3,266,775 2,800,000 305,419 310,238 2,800,000 - FY16 included state one-time $700K Interest income 16,712 12,827 9,100 802 3,627 9,100 - Operating transfers in 500,000 - - - - - - Bond Proceeds - - 1,650,000 - 1,650,000 - Other 17,414 76,819 29,777 10,216 5,067 29,777 - $ 6,986,988 $ 5,541,339 $ 5,923,877 $ 316,437 $ 318,932 $ 5,923,877 $ - 60900 Operating Expenditures 5100 Salaries & Benefits $ 583,140 $ 552,920 $ 805,532 $ 122,719 $ 116,066 $ 805,532 $ - 5200 Operating Supplies 239,474 232,950 271,000 50,135 56,766 271,000 - 5300 Contractual Services 2,801,480 941,866 1,000,000 220,874 244,682 1,000,000 - 5400 Other Expenses 2,889 6,092 2,000 150 3,393 2,000 - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 231,884 231,371 681,000 214,344 212,237 681,000 - $450K to Local Streets & $231K debt $ 3,858,867 $ 1,965,199 $ 2,759,532 $ 608,222 $ 633,144 $ 2,759,532 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - 5300 Contractual Services 2,228,322 3,543,953 3,400,000 40,458 759,415 3,385,000 (15,000) 5700 Capital Outlays - - - - - - - $ 2,228,322 $ 3,543,953 $ 3,400,000 $ 40,458 $ 759,415 $ 3,385,000 $ (15,000) $ 6,087,189 $ 5,509,152 $ 6,159,532 $ 648,680 $ 1,392,559 $ 6,144,532 $ (15,000) Available Fund Balance - EOY $ 2,252,721 $ 2,284,908 $ 1,379,619 $ 1,952,665 $ 1,179,094 $ 2,064,253 $ 684,634 1Q FY2017 Budget Reforecast Page 17 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 203 Local Streets Fund Available Fund Balance - BOY $ 737,511 $ 706,676 $ 67,571 $ 235,692 $ 706,676 $ 235,692 $ 168,121 Means of Financing Special assessments $ 31,940 $ 25,607 $ 22,000 $ - $ - $ 22,000 $ - Federal & state grants - - 35,000 - - 35,000 - CDBG Funding Metro act fees 121,098 163,341 120,000 - - 120,000 - State shared revenue 695,054 714,570 800,000 64,699 69,719 800,000 - Interest income 7,684 7,366 2,900 228 667 2,900 - Operating transfers in 300,000 - 500,000 - - 500,000 - (FY2017: $50K GF + $450K MSF) Other 23,856 18,368 18,000 5,313 434 18,000 - $ 1,179,632 $ 929,252 $ 1,497,900 $ 70,240 $ 70,820 $ 1,497,900 $ - 60900 Operating Expenditures 5100 Salaries & Benefits $ 411,115 $ 545,553 $ 578,643 $ 128,818 $ 83,308 $ 578,643 $ - 5200 Operating Supplies 144,064 121,994 140,000 19,083 13,597 140,000 - 5300 Contractual Services 580,530 676,602 700,000 182,314 134,485 700,000 - 5400 Other Expenses 2,597 661 1,000 - - 1,000 - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - $ 1,138,306 $ 1,344,810 $ 1,419,643 $ 330,215 $ 231,390 $ 1,419,643 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services 72,161 55,426 110,000 14,280 10,765 80,000 (30,000) $ 72,161 $ 55,426 $ 110,000 $ 14,280 $ 10,765 $ 80,000 $ (30,000) $ 1,210,467 $ 1,400,236 $ 1,529,643 $ 344,495 $ 242,155 $ 1,499,643 $ (30,000) Available Fund Balance - EOY $ 706,676 $ 235,692 $ 35,828 $ (38,563) $ 535,341 $ 233,949 $ 198,121 1Q FY2017 Budget Reforecast Page 18 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 257 Budget Stabilization Fund Available Fund Balance - BOY $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ - Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services - - - - - - - Interest income - - - - - - - Operating transfers in - General Fund - - - - - - - Operating transfers in - TIFA Fund - - - - - - - Operating transfers in - Insurance Fund - - - - - - - Other - - - - - - - $ - $ - $ - $ - $ - $ - $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - - - - - - - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - $ - $ - $ - $ - $ - $ - $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Available Fund Balance - EOY $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ - 1Q FY2017 Budget Reforecast Page 19 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 252 Farmers Market & Kitchen 242 Available Fund Balance - BOY $ - $ - $ - $ - $ - $ - $ - Means of Financing Kitchen Rental $ - $ - $ - $ 1,358 $ - $ - $ - Farmers Market Event Rental - - - 250 - - - Farmers Market EBT Fees - - - 1,067 - - - - - - - - - - Funraising Revenue - - - 16,278 - - - - - - - - - - Other - - - - - - - $ - $ - $ - $ 18,953 $ - $ - $ - 70863 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ 5,283 $ - $ - $ - 5200 Operating Supplies - - - 627 - - - 5300 Contractual Services - - - 8,268 - - - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - $ - $ - $ - $ 14,178 $ - $ - $ - 70867 Operating Expenditures - FDA Grant 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - 420 - - - 5700 Capital Outlays - - - - - - - $ - $ - $ - $ 420 $ - $ - $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 14,598 $ - $ - $ - Available Fund Balance - EOY $ - $ - $ - $ 4,355 $ - $ - $ - 1Q FY2017 Budget Reforecast Page 20 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 254 L C Walker Arena Available Fund Balance - BOY $ - $ - $ 5,532 $ 247,028 $ - $ 247,028 $ 241,496 Means of Financing Parking Lot Rental $ - $ 17,493 $ 22,000 $ 3,395 $ - $ 22,000 $ - Rent - 53,761 54,000 12,650 - 54,000 - Arena Event Revenue - 170,549 210,000 23,970 - 210,000 - Shop Rental - 2,400 3,500 - - 3,500 - Concessions Non Alcoholic - 237,692 290,000 8,038 - 290,000 - Alcoholic Beverage - 136,153 168,000 15,825 - 168,000 - Ice Hockey Rental - 144,978 185,000 1,585 - 185,000 - Operating transfers in - General Fund/Cap - 764,832 235,000 - - 235,000 - Bond Proceeds - - - - - Other - 155,048 10,000 20,383 - 10,000 - $ - $ 1,682,906 $ 1,177,500 $ 85,846 $ - $ 1,177,500 $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - 172,306 170,000 13,006 - 170,000 - 5300 Contractual Services - 1,069,316 962,000 154,586 - 962,000 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - 150,956 50,000 34,202 - 50,000 - 5900 Other Financing Uses - - - - - - - $ - $ 1,392,578 $ 1,182,000 $ 201,794 $ - $ 1,182,000 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - 43,300 - 547 - - - $ - $ 43,300 $ - $ 547 $ - $ - $ - $ - $ 1,435,878 $ 1,182,000 $ 202,341 $ - $ 1,182,000 $ - Available Fund Balance - EOY $ - $ 247,028 $ 1,032 $ 130,533 $ - $ 242,528 $ 241,496 1Q FY2017 Budget Reforecast Page 21 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 264 Criminal Forfeitures Fund Available Fund Balance - BOY $ 189,404 $ 158,309 $ 154,009 $ 138,810 $ 158,309 $ 138,810 $ (15,199) Means of Financing Criminal Forfeitures & Contributions $ - $ - $ - $ - $ - $ - $ - Interest income 929 759 700 57 194 700 - Operating transfers in - General Fund - - - - - - - Other 705 - 16,000 9,841 - 16,000 - $ 1,634 $ 759 $ 16,700 $ 9,898 $ 194 $ 16,700 $ - 40333 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - - 5,000 - - 5,000 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays 1,380 20,258 13,500 8,225 4,765 13,500 - 5900 Other Financing Uses 31,349 - - - - - - $ 32,729 $ 20,258 $ 18,500 $ 8,225 $ 4,765 $ 18,500 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 32,729 $ 20,258 $ 18,500 $ 8,225 $ 4,765 $ 18,500 $ - Available Fund Balance - EOY $ 158,309 $ 138,810 $ 152,209 $ 140,483 $ 153,738 $ 137,010 $ (15,199) 1Q FY2017 Budget Reforecast Page 22 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 285 Tree Replacement Fund Available Fund Balance - BOY $ 1,156 $ 1,362 $ 1,767 $ 1,071 $ 1,362 $ 1,071 $ (696) Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - 1,590 - - - - - State shared revenue - - - - - - - Charges for services - - - - - - - Interest income 6 9 - 1 2 - - Operating transfers in - General Fund - - - - - - - Operating transfers in - TIFA Fund - - - - - - - Operating transfers in - Insurance Fund - - - - - - - Other 200 - - - - - - $ 206 $ 1,599 $ - $ 1 $ 2 $ - $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - 1,890 - - 254 - - 5300 Contractual Services - - - - - - - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - $ - $ 1,890 $ - $ - $ 254 $ - $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,890 $ - $ - $ 254 $ - $ - Available Fund Balance - EOY $ 1,362 $ 1,071 $ 1,767 $ 1,072 $ 1,110 $ 1,071 $ (696) 1Q FY2017 Budget Reforecast Page 23 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 295 Brownfield Redevelopment Authority (Betten Project) Available Fund Balance - BOY $ (1,298,922) $ (1,331,453) $ (1,280,833) $ (1,344,403) $ (1,331,453) $ (1,344,403) $ (63,570) Means of Financing Property taxes $ 127,658 $ 130,985 $ 130,000 $ - $ - $ 130,000 $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services - - - - - - - Interest income 401 273 300 13 65 300 - Operating transfers in - General Fund - - - - - - - Operating transfers in - TIFA Fund - - - - - - - Operating transfers in - Insurance Fund - - - - - - - Other 4,794 5,570 4,700 - - 4,700 - $ 132,853 $ 136,828 $ 135,000 $ 13 $ 65 $ 135,000 $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - (7,803) - - - - - 5400 Other Expenses 7,803 - 5,700 - - 5,700 - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 157,581 157,581 157,580 78,790 78,790 157,580 - $ 165,384 $ 149,778 $ 163,280 $ 78,790 $ 78,790 $ 163,280 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 165,384 $ 149,778 $ 163,280 $ 78,790 $ 78,790 $ 163,280 $ - Available Fund Balance - EOY $ (1,331,453) $ (1,344,403) $ (1,309,113) $ (1,423,180) $ (1,410,178) $ (1,372,683) $ (63,570) 1Q FY2017 Budget Reforecast Page 24 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 296 Brownfield Redevelopment Authority (Mall Area Project) Available Fund Balance - BOY $ - $ 110 $ 110 $ 17,967 $ 110 $ 17,967 $ 17,857 Means of Financing Property taxes $ 132,180 $ 160,414 $ 160,000 $ - $ - $ 160,000 $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services - - - - - - - Interest income 110 154 - 7 13 - - Operating transfers in - General Fund - - - - - - - Operating transfers in - TIFA Fund - - - - - - - Operating transfers in - Insurance Fund - - - - - - - Other - 34 - - - - - $ 132,290 $ 160,602 $ 160,000 $ 7 $ 13 $ 160,000 $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - (10,255) - - - - - 5400 Other Expenses - - 7,000 - - 7,000 - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 132,180 153,000 153,000 - - 153,000 - $ 132,180 $ 142,745 $ 160,000 $ - $ - $ 160,000 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 132,180 $ 142,745 $ 160,000 $ - $ - $ 160,000 $ - Available Fund Balance - EOY $ 110 $ 17,967 $ 110 $ 17,974 $ 123 $ 17,967 $ 17,857 1Q FY2017 Budget Reforecast Page 25 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 290 Local Development Finance Authority III Fund - Edison Landing (Smartzone) Available Fund Balance - BOY $ 42,847 $ 33,521 $ 5,171 $ 21,030 $ 33,521 $ 21,030 $ 15,859 Means of Financing Property taxes $ 102,092 $ 95,372 $ 95,000 $ - $ - $ 95,000 $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services - - - - - - - Interest income 129 87 100 13 68 100 - Operating transfers in - General Fund 227,000 265,000 275,000 68,750 62,500 275,000 - Other 100,953 75,000 75,000 - - 75,000 - $ 430,174 $ 435,459 $ 445,100 $ 68,763 $ 62,568 $ 445,100 $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - - 500 - - 500 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 439,500 447,950 448,925 - - 448,925 - $ 439,500 $ 447,950 $ 449,425 $ - $ - $ 449,425 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 439,500 $ 447,950 $ 449,425 $ - $ - $ 449,425 $ - Available Fund Balance - EOY $ 33,521 $ 21,030 $ 846 $ 89,793 $ 96,089 $ 16,705 $ 15,859 1Q FY2017 Budget Reforecast Page 26 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 305 Tax Increment Finance Authority Fund Available Fund Balance - BOY $ 829 $ 2,051 $ 51 $ 454 $ 2,051 $ 454 $ 403 Means of Financing Property taxes $ 39,216 $ 34,398 $ 34,000 $ - $ - $ 34,000 $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services - - - - - - - Interest income 6 5 - - - - - Operating transfers in - General Fund - - - - - - - Operating transfers in - TIFA Fund - - - - - - - Operating transfers in - Insurance Fund - - - - - - - Other - - - - - - - $ 39,222 $ 34,403 $ 34,000 $ - $ - $ 34,000 $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - - - - - - - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 38,000 36,000 34,000 8,500 9,500 34,000 - $ 38,000 $ 36,000 $ 34,000 $ 8,500 $ 9,500 $ 34,000 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 38,000 $ 36,000 $ 34,000 $ 8,500 $ 9,500 $ 34,000 $ - Available Fund Balance - EOY $ 2,051 $ 454 $ 51 $ (8,046) $ (7,449) $ 454 $ 403 1Q FY2017 Budget Reforecast Page 27 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 394 Downtown Development Authority Fund Available Fund Balance - BOY $ 93,778 $ 51,442 $ 50,766 $ 118,840 $ 51,442 $ 118,840 $ 68,074 Means of Financing Property taxes $ 167,705 $ 227,201 $ 160,000 $ - $ - $ 160,000 $ - Federal & state grants - - - - - - State proposal A reimbursement revenue - - - - - - Charges for services - - - - - - Interest income 565 522 400 53 83 400 - Operating transfers in - General Fund 70,000 175,000 175,000 43,750 43,750 175,000 - Operating transfers in - PIF - - - - - - Operating transfers in - Insurance Fund - - - - - - Other 48,981 - - - - - - $ 287,251 $ 402,723 $ 335,400 $ 43,803 $ 43,833 $ 335,400 $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - - 750 - - 750 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 329,587 335,325 334,826 - - 334,826 - $ 329,587 $ 335,325 $ 335,576 $ - $ - $ 335,576 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 329,587 $ 335,325 $ 335,576 $ - $ - $ 335,576 $ - Available Fund Balance - EOY $ 51,442 $ 118,840 $ 50,590 $ 162,643 $ 95,275 $ 118,664 $ 68,074 1Q FY2017 Budget Reforecast Page 28 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 404 Public Improvement Fund Available Fund Balance - BOY $ 370,268 $ 1,066,378 $ (701,422) $ 294,399 $ 1,066,378 $ 294,399 $ 995,821 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Property taxes - - - - - - - Federal & state grants - - 1,204,070 - - 1,204,070 - Charges for services - 21,780 - - - - - Sales of property 14,798 65,971 1,300,000 145,799 38,368 1,300,000 - Interest income 2,837 5,125 2,000 193 1,420 2,000 - Operating transfers in - 750,000 - - - - - Bond Proceeds - - 2,405,850 - 2,405,850 - MMRMA dividends earmarked for Other 695,637 510,736 350,000 - - 350,000 - economic development and fire equipment replacement $ 713,272 $ 1,353,612 $ 5,261,920 $ 145,992 $ 39,788 $ 5,261,920 $ - 30936 Operating Expenditures $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services - 1,986 5,000 - - 5,000 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 92,000 92,000 - Bond Debt Service $ - $ 1,986 $ 97,000 $ - $ - $ 97,000 $ - 90000 Project Expenditures 5100 Salaries & Benefits $ 4,740 $ 2,175 $ - $ 319 $ 212 $ - $ - 5200 Operating Supplies - - - 2,860 - - - 5300 Contractual Services 6,692 114,995 - 6,576 245 - - 5400 Other Expenses - - - - - - - 5700 Capital Outlays 5,730 2,006,435 4,494,550 151,245 46,999 4,494,550 - $ 17,162 $ 2,123,605 $ 4,494,550 $ 161,000 $ 47,456 $ 4,494,550 $ - $ 17,162 $ 2,125,591 $ 4,591,550 $ 161,000 $ 47,456 $ 4,591,550 $ - Available Fund Balance - EOY $ 1,066,378 $ 294,399 $ (31,052) $ 279,391 $ 1,058,710 $ 964,769 $ 995,821 1Q FY2017 Budget Reforecast Page 29 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 482 State Grants Fund Available Fund Balance - BOY $ 107,977 $ 89,359 $ 55,514 $ 73,157 $ 89,359 $ 73,157 $ 17,643 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants 752 197,523 201,897 2,617 - 201,897 - Sales of Property - - - - - - - Interest income 1,475 1,227 1,400 - - 1,400 - Operating transfers in - - - - - - - Other - - - - - - - $ 2,227 $ 198,750 $ 203,297 $ 2,617 $ - $ 203,297 $ - 30936 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - 4 - - - 5300 Contractual Services - 194,859 201,897 4,884 - 201,897 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - $ - $ 194,859 $ 201,897 $ 4,888 $ - $ 201,897 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services 20,845 20,093 20,093 - - 20,093 - LOAN REPAYMENT 5700 Capital Outlays - - - - - - - $ 20,845 $ 20,093 $ 20,093 $ - $ - $ 20,093 $ - $ 20,845 $ 214,952 $ 221,990 $ 4,888 $ - $ 221,990 $ - Available Fund Balance - EOY $ 89,359 $ 73,157 $ 36,821 $ 70,886 $ 89,359 $ 54,464 $ 17,643 1Q FY2017 Budget Reforecast Page 30 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 594 Marina & Launch Ramp Fund Available Cash Balance - BOY $ 167,641 $ 375,988 $ 214,727 $ 402,917 $ 375,988 $ 402,917 $ 188,190 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - 375,000 - - 375,000 - State shared revenue - - - - - - - Charges for services 247,773 275,674 230,000 38,598 42,230 230,000 - Interest income 1,168 1,911 1,200 167 461 1,200 - Operating transfers in - - - - - - - Other 7,865 11,874 4,000 1,007 2,667 4,000 - $ 256,806 $ 289,459 $ 610,200 $ 39,772 $ 45,358 $ 610,200 $ - 70756 Operating Expenditures - Marina 5100 Salaries & Benefits $ 26,387 $ 29,623 $ 31,049 $ 6,063 $ 5,586 $ 31,049 $ - 5200 Operating Supplies 13,013 9,730 8,700 3,316 3,509 8,700 - 5300 Contractual Services 144,388 163,262 161,948 52,635 66,426 161,948 - 5400 Other Expenses - 39 250 - - 250 - 5700 Capital Outlays 2,515 1,721 22,300 4,250 - 22,300 - 5900 Other Financing Uses - - - - - - - Other Cash Uses (e.g. Debt Principal) (145,003) 7,189 - (434) 1,431 - - $ 41,300 $ 211,564 $ 224,247 $ 65,830 $ 76,952 $ 224,247 $ - 70759 Operating Expenditures - Ramps 5100 Salaries & Benefits $ - $ - $ 1,000 $ - $ - $ 1,000 $ - 5200 Operating Supplies 467 2,358 1,000 897 - 1,000 - 5300 Contractual Services 6,692 4,974 10,500 415 712 10,500 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - Other Cash Uses (e.g. Debt Principal) - - - - - - - $ 7,159 $ 7,332 $ 12,500 $ 1,312 $ 712 $ 12,500 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - 43,634 500,000 - - 500,000 - 5700 Capital Outlays - - - - - - - $ - $ 43,634 $ 500,000 $ - $ - $ 500,000 $ - $ 48,459 $ 262,530 $ 736,747 $ 67,142 $ 77,664 $ 736,747 $ - Available Cash Balance - EOY $ 375,988 $ 402,917 $ 88,180 $ 375,547 $ 343,682 $ 276,370 $ 188,190 1Q FY2017 Budget Reforecast Page 31 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 661 Equipment Fund Available Cash Balance - BOY $ 802,987 $ 617,235 $ 801,917 $ 699,089 $ 617,235 $ 699,089 $ (102,828) Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services 2,224,558 2,368,803 2,368,700 732,786 562,885 2,368,700 - Interest income 28,025 17,343 20,000 6,923 8,039 20,000 - Operating transfers in - - - - - - - Other 64,193 51,623 36,000 3,643 9,390 36,000 - $ 2,316,776 $ 2,437,769 $ 2,424,700 $ 743,352 $ 580,314 $ 2,424,700 $ - 60932 Operating Expenditures 5100 Salaries & Benefits $ 429,795 $ 534,473 $ 516,332 $ 114,670 $ 96,428 $ 516,332 $ - 5200 Operating Supplies 901,987 831,413 848,500 153,800 175,567 848,500 - 5300 Contractual Services 808,005 853,847 733,669 158,370 178,888 733,669 - 5400 Other Expenses 10 - 1,500 209 - 1,500 - 5700 Capital Outlays 466,985 207,978 771,500 166,133 14,703 815,500 44,000 5900 Other Financing Uses - - - - - - - Other Cash Uses (e.g. Debt Principal) (104,254) (71,796) - 8,537 57,880 - - $ 2,502,528 $ 2,355,915 $ 2,871,501 $ 601,719 $ 523,466 $ 2,915,501 $ 44,000 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - 5700 Capital Outlays - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 2,502,528 $ 2,355,915 $ 2,871,501 $ 601,719 $ 523,466 $ 2,915,501 $ 44,000 Available Cash Balance - EOY $ 617,235 $ 699,089 $ 355,116 $ 840,722 $ 674,083 $ 208,288 $ (146,828) 1Q FY2017 Budget Reforecast Page 32 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 642 Public Service Building Fund Available Cash Balance - BOY $ 568,069 $ 691,971 $ 604,153 $ 614,800 $ 691,971 $ 614,800 $ 10,647 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services 1,085,289 976,760 1,049,134 262,283 244,190 1,049,134 - Interest income 3,073 3,334 2,700 261 846 2,700 - Operating transfers in - - - - - - - Other 128,970 5,830 - - 5,830 - - $ 1,217,332 $ 985,924 $ 1,051,834 $ 262,544 $ 250,866 $ 1,051,834 $ - 60442 Operating Expenditures 5100 Salaries & Benefits $ 631,771 $ 780,360 $ 715,058 $ 164,037 $ 151,301 $ 715,058 $ - 5200 Operating Supplies 29,270 34,757 31,000 3,460 15,380 31,000 - 5300 Contractual Services 282,295 288,240 291,480 47,339 74,743 291,480 - 5400 Other Expenses 264 2,334 750 21 1,789 750 - 5700 Capital Outlays 44,587 59,872 50,000 8,028 1,251 50,000 - 5900 Other Financing Uses - - - - - - - Other Cash Uses and Adjustments (e.g. (29,697) (102,468) - 29,588 35,383 - - Debt Principal) $ 958,490 $ 1,063,095 $ 1,088,288 $ 252,473 $ 279,847 $ 1,088,288 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services 134,940 - 50,000 - - 50,000 - 5700 Capital Outlays - - - - - - - $ 134,940 $ - $ 50,000 $ - $ - $ 50,000 $ - $ 1,093,430 $ 1,063,095 $ 1,138,288 $ 252,473 $ 279,847 $ 1,138,288 $ - Available Cash Balance - EOY $ 691,971 $ 614,800 $ 517,699 $ 624,871 $ 662,990 $ 528,346 $ 10,647 1Q FY2017 Budget Reforecast Page 33 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 643 Engineering Services Fund Available Cash Balance - BOY $ 79,207 $ 27,862 $ 54,182 $ 36,081 $ 27,862 $ 36,081 $ (18,101) Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services 236,774 250,182 300,000 25,660 47,678 300,000 - Interest income 229 29 250 12 24 250 - Operating transfers in 75,000 75,000 13,000 - - 13,000 - for GF activities/support services Other - - - - - - - $ 312,003 $ 325,211 $ 313,250 $ 25,672 $ 47,702 $ 313,250 $ - 60447 Operating Expenditures 5100 Salaries & Benefits $ 164,873 $ 182,571 $ 220,000 $ 45,456 $ 31,564 $ 220,000 $ - 5200 Operating Supplies 6,302 6,443 9,430 1,212 583 9,430 - 5300 Contractual Services 143,907 110,091 90,000 14,909 28,885 90,000 - 5400 Other Expenses 1,493 18,395 2,000 54 699 2,000 - 5700 Capital Outlays 9,713 6,326 11,200 2,862 1,241 11,200 - 5900 Other Financing Uses - - - - - - - Other Cash Uses and Adjustments (e.g. 16,172 (31,232) - 17,537 3,482 - - Debt Principal) $ 342,460 $ 292,594 $ 332,630 $ 82,030 $ 66,454 $ 332,630 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services 20,888 24,398 10,000 - 12,210 10,000 - 5700 Capital Outlays - - - - - - - $ 20,888 $ 24,398 $ 10,000 $ - $ 12,210 $ 10,000 $ - $ 363,348 $ 316,992 $ 342,630 $ 82,030 $ 78,664 $ 342,630 $ - Available Cash Balance - EOY $ 27,862 $ 36,081 $ 24,802 $ (20,277) $ (3,100) $ 6,701 $ (18,101) 1Q FY2017 Budget Reforecast Page 34 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 677 General Insurance Fund Available Cash Balance - BOY $ 1,509,014 $ 1,694,944 $ 1,803,380 $ 1,702,109 $ 1,694,944 $ 1,702,109 $ (101,271) Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services 3,195,930 3,443,861 3,760,000 919,759 803,682 3,760,000 - Interest income 22,710 22,402 25,000 7,362 9,166 25,000 - Retireee Health Reimbursement 1,050,787 1,177,563 1,140,000 163,568 129,696 1,140,000 - MMRMA dividend payment - - - - - - - Operating transfers in 14,023 - - - - - - Other 12,420 8,972 9,000 1,356 2,782 9,000 - $ 4,295,870 $ 4,652,798 $ 4,934,000 $ 1,092,045 $ 945,326 $ 4,934,000 $ - 30851 Operating Expenditures 5100 Salaries & Benefits $ 88,900 $ 283,744 $ 43,752 $ 9,241 $ 7,787 $ 43,752 $ - 5200 Operating Supplies - 180 200 - - 200 - 5300 Contractual Services 4,246,717 4,255,839 4,900,000 996,457 1,134,350 4,900,000 - 5400 Other Expenses 6,357 10,433 10,000 2,735 980 10,000 - 5700 Capital Outlays 425 - 2,645 - - 2,645 - 5900 Other Financing Uses - - - - - - - Other Cash Uses and Adjustments (e.g. (232,459) 95,437 327,000 281,869 258,914 327,000 - Addtl OPEB contribution for FY2017 Debt Principal) $ 4,109,940 $ 4,645,633 $ 5,283,597 $ 1,290,302 $ 1,402,031 $ 5,283,597 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services - - - - - - - 5700 Capital Outlays - - - - - - - $ - $ - $ - $ - $ - $ - $ - $ 4,109,940 $ 4,645,633 $ 5,283,597 $ 1,290,302 $ 1,402,031 $ 5,283,597 $ - Available Cash Balance - EOY $ 1,694,944 $ 1,702,109 $ 1,453,783 $ 1,503,852 $ 1,238,239 $ 1,352,512 $ (101,271) 1Q FY2017 Budget Reforecast Page 35 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 590 Sewer Fund Available Cash Balance - BOY $ 3,545,607 $ 2,339,749 $ 1,357,166 $ 1,428,302 $ 2,339,749 $ 1,428,302 $ 71,136 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants 474,681 765,363 1,000,000 - 118,165 1,000,000 - State shared revenue - - - - - - - Charges for services 6,240,189 6,129,352 7,500,000 2,026,210 1,459,179 7,500,000 - 1.49 multiplier x county rate FY17 Interest income 16,106 10,413 15,000 495 2,885 15,000 - Repayment of DDA advance - - - - - - - Operating transfers in - - - - - - - Bond Proceeds - - 300,000 - 300,000 - Other 139,834 185,171 140,000 45,969 45,100 140,000 - $ 6,870,810 $ 7,090,299 $ 8,955,000 $ 2,072,674 $ 1,625,329 $ 8,955,000 $ - 30548 Operating Expenditures Administration 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services 297,398 438,534 437,298 93,362 93,747 437,298 - 5400 Other Expenses 16,215 8,969 12,000 - - 12,000 - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - Other Cash Uses and Adjustments (e.g. (17,927) (258,944) - 1,210,567 (75,772) - - Debt Principal) $ 295,686 $ 188,559 $ 449,298 $ 1,303,929 $ 17,975 $ 449,298 $ - 60559 Operating Expenditures Maintenance 5100 Salaries & Benefits $ 519,321 $ 699,023 $ 781,472 $ 167,043 $ 116,508 $ 781,472 $ - 5200 Operating Supplies 45,428 88,129 55,390 19,379 3,470 55,390 - 5300 Contractual Services 362,351 393,649 440,654 134,306 85,543 440,654 - 5400 Other Expenses 31,794 17,960 23,000 6,760 - 23,000 - 5700 Capital Outlays 4,770 4,571 5,900 580 2,337 5,900 - 5900 Other Financing Uses - - - - - - - $ 963,664 $ 1,203,332 $ 1,306,416 $ 328,068 $ 207,858 $ 1,306,416 $ - 60557 Operating Expenditures Treatment 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services 6,210,557 5,749,839 6,000,000 947,703 946,470 6,000,000 - 5400 Other Expenses - - - - - - - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses - - - - - - - $ 6,210,557 $ 5,749,839 $ 6,000,000 $ 947,703 $ 946,470 $ 6,000,000 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services 606,761 860,016 1,300,000 2,823 309,423 1,300,000 - 5700 Capital Outlays - - - - - - - $ 606,761 $ 860,016 $ 1,300,000 $ 2,823 $ 309,423 $ 1,300,000 $ - $ 8,076,668 $ 8,001,746 $ 9,055,714 $ 2,582,523 $ 1,481,726 $ 9,055,714 $ - Available Cash Balance - EOY $ 2,339,749 $ 1,428,302 $ 1,256,452 $ 918,453 $ 2,483,352 $ 1,327,588 $ 71,136 1Q FY2017 Budget Reforecast Page 36 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual to Date Actual to Date Actual 2015 Actual 2016 Original Budget 1Q Reforecast Increase (Decrease) Comments 9/30/16 9/30/15 Estimate FY2017 FY2017 From Original 591 Water Fund Available Cash Balance - BOY $ 2,656,611 $ 3,146,513 $ 3,630,472 $ 3,379,692 $ 3,146,513 $ 3,379,692 $ (250,780) Means of Financing Special assessments $ - $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - - State shared revenue - - - - - - - Charges for services - City 3,565,258 3,271,984 3,499,250 1,099,904 872,373 3,499,250 - Charges for services - Wholesale 2,247,573 3,590,703 3,600,000 1,379,280 1,115,374 3,600,000 - Maintenance services - Township 185,399 119,509 155,000 18,323 11,803 155,000 - Interest income 12,605 13,363 11,000 1,255 3,199 11,000 - Lease of facilities 165,445 190,370 173,000 29,037 45,109 173,000 - Repayment of DDA advance - - - - - - - Operating transfers in - - - - - - - Other 222,994 318,427 170,000 53,771 73,360 170,000 - $ 6,399,274 $ 7,504,356 $ 7,608,250 $ 2,581,570 $ 2,121,218 $ 7,608,250 $ - 30548 Operating Expenditures Administration 5100 Salaries & Benefits $ - $ - $ - $ - $ - $ - $ - 5200 Operating Supplies - - - - - - - 5300 Contractual Services 525,923 897,399 932,085 211,108 202,930 932,085 - 5400 Other Expenses 10,800 5,981 17,000 - - 17,000 - 5700 Capital Outlays - - - - - - - 5900 Other Financing Uses 292,087 258,604 246,500 78,222 84,473 246,500 - Water System Bond Interest Other Cash Uses and Adjustments (e.g. 977,712 1,731,091 1,405,000 1,075,096 1,139,319 1,405,000 - Water System Bond Principal Debt Principal) $ 1,806,522 $ 2,893,075 $ 2,600,585 $ 1,364,426 $ 1,426,722 $ 2,600,585 $ - 60559 Operating Expenditures Maintenance 5100 Salaries & Benefits $ 978,339 $ 1,078,047 $ 1,064,918 $ 260,122 $ 213,090 $ 1,064,918 $ - 5200 Operating Supplies 245,340 224,085 231,500 70,733 70,320 231,500 - 5300 Contractual Services 430,854 375,383 410,501 113,863 104,309 410,501 - 5400 Other Expenses 44,867 129,850 139,500 16,151 26,790 139,500 - 5700 Capital Outlays 11,542 7,000 13,500 4,706 3,399 13,500 - 5900 Other Financing Uses - - - - - - - $ 1,710,942 $ 1,814,365 $ 1,859,919 $ 465,575 $ 417,908 $ 1,859,919 $ - 60558 Operating Expenditures Filtration 5100 Salaries & Benefits $ 671,659 $ 780,529 $ 825,235 $ 179,456 $ 141,622 $ 825,235 $ - 5200 Operating Supplies 217,774 291,263 315,000 88,285 50,394 315,000 - 5300 Contractual Services 534,397 648,968 840,000 89,108 133,681 840,000 - 5400 Other Expenses 3,603 4,907 6,500 451 851 6,500 - 5700 Capital Outlays 59,027 44,454 53,000 12,789 24,160 53,000 - 5900 Other Financing Uses - - - - - - - Replacement Reserve - DWRF - - - - - - - $ 1,486,460 $ 1,770,121 $ 2,039,735 $ 370,089 $ 350,708 $ 2,039,735 $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - $ - $ - $ - $ - 5300 Contractual Services 905,448 793,616 1,080,000 31,115 404,226 1,052,000 (28,000) 5700 Capital Outlays - - - - - - - $ 905,448 $ 793,616 $ 1,080,000 $ 31,115 $ 404,226 $ 1,052,000 $ (28,000) $ 5,909,372 $ 7,271,177 $ 7,580,239 $ 2,231,205 $ 2,599,564 $ 7,552,239 $ (28,000) Available Cash Balance - EOY $ 3,146,513 $ 3,379,692 $ 3,658,483 $ 3,730,057 $ 2,668,167 $ 3,435,703 $ (222,780) 1Q FY2017 Budget Reforecast Page 37 of 40 City of Muskegon Quarterly Budget Reforecast FY 2016-17 2016-17 Budgeted 2016-17 Budgeted 2016-17 2016-17 Projects (Including Projects (Including Estimated Estimated Grant Responsibility Carryover Amounts Carryover Amounts Project Grant Comments Project Grant Year From Prior FY) From Prior FY) 1Q Revenue 1Q Revenue Original Original Reforecast Reforecast BUDGETED MAJOR CAPITAL PROJECTS 101 General Fund VOIP Phone System Maurer $ 20,000 $ 20,000 $ - $ - FY17 is year 5 of 5 annual payments, 0% interest ADA Compliance, Various Locations Al-Shatel 15,000 15,000 Federal agreement deposit to convert street lights by C.E.; comm. Street Lights Conversion to LED, Consumers Al-Shatel 270,000 270,000 Discussed 1/28/16 Beukema Park, building improvements Al-Shatel 20,000 20,000 - - Parks Reservation System Al-Shatel - 15,000 - - new system to enhance customer service 325,000 340,000 - - 202 Major Streets payments on various State projects that are MDOT Projects Al-Shatel 40,000 - - - completed but not finaled US-31 BR, Sherman to Shoreline Dr.-carry over US - 31 BR Al-Shatel 20,000 20,000 from 14/15 91208 Latimer, Port City Blvd. to Black Creek Al-Shatel 20,000 - - - Design in FY14/15, construction in FY15/16 moved from state grants fund with additional new Musketawa Trail Connection (Keating to Black Creek) Al-Shatel 235,000 235,000 235,000 235,000 money (federal)- carryover from 15/16 Street Lights Removal Al-Shatel 25,000 - charged cost to GF streetlights cost center (60448) continuation from 15/16, grant money of $400,000 91413 Laketon Ave. Nevada to Lakeshore Dr. Al-Shatel 1,000,000 1,000,000 - - accounted for in 15/16…match from bonds $759,000 STP grant and potential $400,000 from Laketon Ave. Getty to Creston Al-Shatel 1,800,000 1,800,000 1,150,000 1,150,000 HPP local match from bonds Glenside, Sherman to Glen Al-Shatel 240,000 240,000 mill and resurfacing using bonds Hackley, Seaway to Park; joint project with MHTS Al-Shatel 70,000 Traffic studies Al-Shatel 20,000 20,000 - - 3,400,000 3,385,000 1,385,000 1,385,000 203 Local Streets continuation from 15/16. Street portion of WM Monroe, 5th to 4th Al-Shatel 45,000 15,000 replacement CDBG funding for FY2016-17; as part of WM 91609 Hartford/Diana/Pine Al-Shatel 65,000 65,000 35,000 35,000 upgrades 110,000 80,000 35,000 35,000 264 Criminal Forfeiture Fund Tactical Video Investigation, interview equipment J. Lewis 13,500 13,500 - - additional equipment 1Q FY2017 Budget Reforecast Page 38 of 40 City of Muskegon Quarterly Budget Reforecast FY 2016-17 2016-17 Budgeted 2016-17 Budgeted 2016-17 2016-17 Projects (Including Projects (Including Estimated Estimated Grant Responsibility Carryover Amounts Carryover Amounts Project Grant Comments Project Grant Year From Prior FY) From Prior FY) 1Q Revenue 1Q Revenue Original Original Reforecast Reforecast BUDGETED MAJOR CAPITAL PROJECTS 13,500 13,500 - - 404 Public Improvement Fund If grant is awarded. Decision was made by Playground Equipment at P.M. Al-Shatel 367,800 367,800 220,700 220,700 Commission to hold off and apply for grant FY17 construction of 5 new houses in Neighborhood Housing Program Peterson 850,000 850,000 neighborhoods Port security boat J. Lewis 369,000 369,000 282,000 282,000 FY17 only if grant is received L.C. Walker Arena general work (heating/cooling/structure) Peterson 1,400,000 1,400,000 bond financing to be used for project costs Arena Annex Capital Improvements Peterson 150,000 150,000 bond financing to be used for project costs Parking lot - N.W. corner of Jefferson/Clay Al-Shatel 200,000 200,000 bond financing to be used for project costs Fire Department Rescue Truck J. Lewis 680,000 680,000 618,000 618,000 FY17 only if grant is received, replaces Rescue Truck 71 only if grant is received, Life Pak & standalone Fire Department, AFG Equipment J. Lewis 91,700 91,700 83,370 83,370 FY17 generator Fire Department Equipment J. Lewis 26,300 26,300 Commecial/Industrial Demolitions Brubaker-Clarke 300,000 300,000 Blight fight efforts Four Season Air Craft, reduced the amount used for Fire Department - Gear J. Lewis 59,750 59,750 - - different equipment in 15/16 4,494,550 4,494,550 1,204,070 1,204,070 590 Sewer various sewer major repairs/emergencies, use this Sewer Rehabilitation Project (Various Projects) Al-Shatel 300,000 195,000 - - fund for S-2 project 91609 Hartford/Diana/Pine Al-Shatel 75,000 91413 Laketon Ave. Nevada to Lakeshore Dr. Al-Shatel 30,000 SAW Grant Al-Shatel 1,000,000 1,000,000 1,000,000 1,000,000 carry over from 14/15 1,300,000 1,300,000 1,000,000 1,000,000 591 Water SCAD Migration Project Al-Shatel 175,000 175,000 - - instrumentation upgrade, continuation from 15/16 Harvey Pump Repair, # 2 Al-Shatel 30,000 30,000 - - repair of second pump. Repair & add membrane to 2 of 4 clear wells @ plant Al-Shatel 250,000 250,000 Repair switch gear for HSP Al-Shatel 30,000 as per Filtration Plant Superintendent's request Develop Asset Management plan Al-Shatel 35,000 35,000 50-50 between distribution & treatment 1Q FY2017 Budget Reforecast Page 39 of 40 City of Muskegon Quarterly Budget Reforecast FY 2016-17 2016-17 Budgeted 2016-17 Budgeted 2016-17 2016-17 Projects (Including Projects (Including Estimated Estimated Grant Responsibility Carryover Amounts Carryover Amounts Project Grant Comments Project Grant Year From Prior FY) From Prior FY) 1Q Revenue 1Q Revenue Original Original Reforecast Reforecast BUDGETED MAJOR CAPITAL PROJECTS Replace High Service Valve @ filtration Al-Shatel 70,000 70,000 Repair & add membrane to 2 of 4 cells @ Harvey Al-Shatel 120,000 120,000 Distribution Reliability Study Al-Shatel 25,000 25,000 - - continuation Laketon, Nevada to Lakeshore Dr. Al-Shatel 50,000 75,000 - - increased allocated WM Laketon, Getty to Creston Al-Shatel 50,000 50,000 Water Main Replacements, Various Locations & 2" 91609 Hartford/Diana/Pine Al-Shatel 150,000 150,000 - - & 4" Monroe, 5th to 4th Al-Shatel 105,000 22,000 continuation from 16, only $22,000 in 17 GIS Update and Maintenance Al-Shatel 20,000 20,000 - - County licensing & map maintenance 1,080,000 1,052,000 - - 594 Marina contingent upon receiving grant - no grant - no Docks & Building Improvements (office, bathroom) Al-Shatel 500,000 500,000 375,000 375,000 FY17 project 500,000 500,000 375,000 375,000 642 PSB PSB Improvements, including possible Eng. Evaluation of building Al-Shatel 50,000 50,000 - - 50,000 50,000 - - 643 Engineering Services Intergovernmental Engineering Work Al-Shatel 10,000 10,000 - - 10,000 10,000 - - 661 Equipment Fund 720/Quant Non-Vehicular Equipment: 1 Spreader, parks Al-Shatel 15,000 added, will be used for spreading fertlizer 1 Baech Cleaner Al-Shatel 45,000 44,000 replaces old machine price was much higher than anticipated at original 1 Leaf Sucker Al-Shatel 15,000 28,000 budget time price was much higher than anticipated at original 1 Fuel System upgrade @ DPW Al-Shatel 17,000 25,000 budget time 2 Salt Boxes Al-Shatel 20,000 38,000 replaces old Larson boxes 1Q FY2017 Budget Reforecast Page 40 of 40 City of Muskegon Quarterly Budget Reforecast FY 2016-17 2016-17 Budgeted 2016-17 Budgeted 2016-17 2016-17 Projects (Including Projects (Including Estimated Estimated Grant Responsibility Carryover Amounts Carryover Amounts Project Grant Comments Project Grant Year From Prior FY) From Prior FY) 1Q Revenue 1Q Revenue Original Original Reforecast Reforecast BUDGETED MAJOR CAPITAL PROJECTS various small equipment Al-Shatel 30,000 30,000 - - 1 Riding Mower Al-Shatel 7,500 7,500 - - Cemetery 134,500 187,500 - - 5746 Communications Equipment: various items to outfit new cruisers Al-Shatel 20,000 20,000 - - 20,000 20,000 - - 5730 Vehicles: 3 Police Cruisers Al-Shatel 90,000 82,000 - - Includes police package outfitting 2 Detective cars Al-Shatel 47,000 47,000 2 3/4 ton trucks - fire department- 4x4 Al-Shatel 64,000 62,000 1 3/4 ton truck for DPW- 2x4 Al-Shatel 25,000 25,000 1 backhoe Al-Shatel 111,000 112,000 carry over one carry over and one for this year, approval by 2 Plow Truck Al-Shatel 280,000 280,000 - - commission was issued but truck will not be paid for 617,000 608,000 - - Total Equipment Fund 771,500 815,500 - - $ 12,041,050 $ 12,027,050 $ 3,999,070 $ 3,999,070 Date: 11/22/16 To: Honorable Mayor and City Commissioners From: DPW/Equipment RE: Commercial Chemical Spreader/Sprayer SUMMARY OF REQUEST: Authorize staff to purchase one (1) Z Max Commercial Spreader/Sprayer from SiteOne Landscape Supply, lowest qualified bidder with a bid price of $11,455.00 (the other bid was submitted by LT Rich Products for $11,455.77). This request is contingent upon 1st quarter budget reforecast approval. FINANCIAL IMPACT: $11,455.00 BUDGET ACTION REQUIRED: None. Amount is what was budgeted. STAFF RECOMMENDATION: Authorize staff to purchase one (1) Z Max Commercial Chemical Spreader/Sprayer. O:\CLERK\Common\Word\Agenda Items for Next Meeting\2016\112216\23_DPW1_agenda item to purchase Zmaxspreader 11-22-16.doc Commission Meeting Date: November 22, 2016 Date: November 17, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Transfer of the Commercial Rehabilitation Exemption Certificate – 316 Morris Ave. SUMMARY OF REQUEST: The Hinman Company was approved for a Commercial Rehabilitation Exemption Certificate in 2013 and the certificate was applied to the entire building. However, the project only included the rehabilitation of floors one through five and did not include floors six and seven. The certificate was approved for 10 years and the company did invest the $450,000 in upgrades as described in the application. The company would like to transfer the Commercial Rehabilitation Exemption Certificate (#C2013-011) from the entire building (floors 1-7) to floors one through five. This will allow them to apply for a Neighborhood Enterprise Zone Certificate for floors six and seven for their apartment project. Currently, they would not be able to apply for a Neighborhood Enterprise Zone Certificate because there is already an abatement on floors six and seven and the Michigan Economic Development Corporation does not allow multiple tax abatements at the same location. FINANCIAL IMPACT: The transfer would allow for the company to apply for a Neighborhood Enterprise Zone. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the Commercial Rehabilitation Exemption Certificate transfer. COMMITTEE RECOMMENDATION: None 11/17/2016 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION TRANSFERRING A COMMERCIAL REHABILITATION EXEMPTION CERTIFICATE (#C2013-011) Hinman Lake, LLC WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on January 22, 2013, this Commission by resolution established a Commercial Rehabilitation District as requested by Hinman Lake, LLC for the building at 316 Morris Ave, Muskegon, Michigan 49442; and WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on August 27, 2013, this Commission by resolution approved a Commercial Rehabilitation Exemption Certificate as requested by Hinman Lake, LLC for the building at 316 Morris Ave, Muskegon, Michigan 49442; and WHEREAS, the Commercial Rehabilitation Certificate was issued on December 16, 2013, by the Michigan State Tax Commission (#C2013-011); and WHEREAS, the project included the rehabilitation of floors one through five and did not include floors six and seven; and WHEREAS, Hinman Lake, LLC has requested in writing that they would like to transfer the Commercial Rehabilitation Exemption Certificate (#C2013-011) from the entire seven-story building located at 316 Morris Ave, Muskegon, to condo units one through five (i.e. floors 1-5) at 316 Morris Ave, Muskegon; and NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan that the Commercial Rehabilitation Exemption Certificate (#C2013-011) shall be transferred from the entire seven-story building located at 316 Morris Ave, Muskegon, to condo units one through five (i.e. floors 1-5) at 316 Morris Ave, Muskegon. Adopted this 22nd Day of November, 2016. Ayes: Nays: Absent: BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk 11/17/16 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on November 22, 2016. ______________________________ Ann Meisch Clerk 11/17/16 CITY OF MUSKEGON CONTRACT FOR TAX ABATEMENT Act 210 Public Acts of 2005 AGREEMENT between CITY OF MUSKEGON, a municipal corporation of 933 Terrace Street, Muskegon, Michigan 49441, (“City”) and Hinman Lake, LLC (“Company”). Recitals: A. The Company has applied to City for the issuance of a Commercial Rehabilitation Exemption Certificate pursuant to the provisions of Act 210 of the Public Acts of 2005, as amended. B. The City has determined that it is in the best interests of the taxpayers, property owners and residents of the City that this Agreement be approved and executed prior to the issuance of the requested certificate, and the City deems this Contract, together with the conditions set forth in the said Act to constitute a necessary element in the City’s determination whether or not to issue the certificate. C. The Company intends to install the project set forth in its application (“project”) which it believes qualifies for the issuance of the certificate. D. The City, provided this Agreement is executed, will determine whether to issue the certificate based upon the potential for the production of permanent jobs, the continuation or increase of economic activity, planning and zoning considerations and the City’s general plan and intentions regarding economic development. In addition to the City policy considerations and predictions that the Company’s proposed district and certificate benefit the community in those ways, the City has further determined that the contractual commitments made by the Company to thereby assist the community shall be binding on the Company and necessary to continue the tax exemption made possible by the certificate. NOW THEREFORE THE PARTIES AGREE: 1. COMPANY AGREEMENT. The Company irrevocably commits to the investment, job retention and job creation promises made in its application, a copy of which is attached hereto and incorporated herein. In particular the Company agrees: 1.1 That 100% of the jobs shall be filled and in existence with full-time employees by a date no later than two (2) years from the date of the granting of the certificate by the State Tax Commission. Page 1 1.2 The Company, by the end of two (2) years from the date of the grant of the certificate by the State Tax Commission shall have completed the investment of $450,000 in real property improvements as shown in the application. 1.3 That the improvements to receive the tax abatement treatment shall be completed on or before the date two (2) years from the date of granting of the certificate by the State Tax Commission. 1.4 The Company shall pay its specific taxes required by the act in a timely manner, and shall not delay payments so as to incur any penalties or interest. 1.5 The Company shall not appeal the valuation of any real or personal property at the facility to the Michigan Tax Tribunal or the State Tax Commission. 1.6 The Company shall fully cooperate with the City representatives in supplying all requested and required documentation regarding jobs, investment, the meeting of all goals and the timely installation and utilization of equipment and improvements. The City shall be entitled to inspect at reasonable hours the Company’s premises where the said improvements and equipment have been installed and where the said jobs are performed. 1.7 The Company shall maintain, during the entire period for which the tax abatement is granted, the level of jobs, production and utilization of the improvements and equipment at the site where the district has been created and for which the tax exemption has been granted. 1.8 The Company shall not cause or fail to cure the release of any hazardous substance, or the violation of any environmental law on its premises in the City. It shall report any releases to the appropriate governmental authority in a timely and complete manner, and provide copies of said report documentation to the City. It shall comply with all orders and actions of any governmental agency having authority. 1.9 The Company shall maintain the improvements so as to minimize physical or functional obsolescence. 1.10 The Company shall continue to operate its business location in the City, containing the same number of and type of jobs, for the term of the certificate. 2. AGREEMENT BY THE CITY. Provided this contract has been executed and further provided all applications to create the district and achieve the Commercial Rehabilitation Exemption Certificate have been properly filed, the City shall, in a timely manner, determine in a public meeting to create the district and receive, process, and approve thereafter the Company’s application for a Commercial Rehabilitation Exemption Certificate. The City may consider this contract in a meeting separate from and prior to the meeting in which the City considers the creation of the district and Page 2 approval of the application for certificate. Further, the City shall require the submission of this contract signed by the Company together with its applications, before creating the district. 3. EVENTS OF DEFAULT. The following actions or failures to comply shall be considered events of default by the Company: 3.1 Failure to meet any of the commitments set forth above. 3.2 The closing of the Company’s facilities in the City. Closing shall mean for purpose of this Agreement, the elimination of substantially all the jobs created or retained thereby, which are set forth in the Company’s application. 3.3 Failure to afford to the City the documentation and reporting required. 3.4 The failure to create or retain jobs, or expend the funds on improvements as represented in the application within the times required hereby. 3.5 The bankruptcy or insolvency of the Company. 3.6 The failure to pay any and all taxes and assessments levied on the Company’s property or any other taxes, local, state or federal, including but not limited to City income taxes and the withholding of said City income taxes from employees as required by the City Income Tax Ordinance. 3.7 The performance or omission of any act which would lead to revocation under MCLA 207.565, being §15 of the Act. 3.8 The violation of any provisions, promises, commitments, considerations or covenants of this Agreement. 4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City shall have the following remedies which it may invoke without notice, except as may be reasonably required by the Company’s rights to due process: 4.1 In the event of closing as determined after investigation of the facts and a public hearing, the Company shall be immediately liable for penalties to be paid forthwith to the city as determined as follows: 4.1.1 The Company shall pay to the City for prorata distribution to the taxing units experiencing the abatement, an amount equal to the difference between the commercial exemption property tax which it has paid, and the total property taxes to the relevant taxing units which it would have paid, given its installations of improvements and equipment, during the years for which the certificate was in effect. Page 3 4.1.2 Immediate Revocation. The Company hereby consents to revocation of the Commercial Rehabilitation Exemption Certificate before the State Tax Commission, without hearing, and the City shall submit a copy of this Agreement to the State Tax Commission in connection with its revocation procedure, giving notice that the default has occurred and immediate revocation should occur. 4.2 In the event the improvements have not been installed before the two (2) year period, in addition to the revocation procedures before the State Tax Commission, the abatement should immediately be reduced by the City proportionately, and any installations which have not been finished at the end of said two (2) year period shall not be eligible for the abatement thereafter and shall be placed on the regular tax roll. 4.3 Job Creation and Retention. In the event the promised number of jobs have not been created or retained at the end of the two (2) years after the grant of the certificate by the State Tax Commission, the abatement shall be proportionately reduced. 4.4 For other violations of this Agreement or for actions or omissions by the Company amounting to grounds for revocation by statue, the City shall recommend to the State Tax Commission immediate revocation of the certificate. 4.5 Special Assessment. For any amount due to be paid to the City, under this Section 4, the Company consents that the City shall have a personal action against the Company for the said amount, and in addition, cumulatively, and not by election, the City shall have a special assessment lien on all the property of the Company personal and real, located in the City, for the collection of the amounts due as and in the manner of property taxes and in such case the collection of the said special assessment shall be accomplished by addition by the City to the Company’s property tax statement regularly rendered. 5. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan applicable to contracts made and to be performed within the State of Michigan. 6. Counterparts. This Agreement may be executed in one or more counterparts. Notwithstanding such execution all such counterparts shall constitute one and the same Agreement. 7. Benefit. This Agreement shall be binding upon and inure to the benefit of the respective parties, their successors and personal representatives. 8. Effective Date. This Agreement shall be effective on the date the State of Michigan Tax Commission grants the company at Commercial Rehabilitation Exemption Certificate. Page 4 CITY OF MUSKEGON By _________________________ Stephen J. Gawron, Mayor Date _________________________ and___________________________ Ann Meisch, Clerk Date _________________________ By___________________________ Its______________________ Date _________________________ Page 5 Commission Meeting Date: November 22, 2016 Date: November 17, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Revocation of a portion of the Commercial Rehabilitation Exemption Certificate – 316 Morris Ave. SUMMARY OF REQUEST: In order to apply for the Neighborhood Enterprise Zone Certificate for floors six and seven, the Commercial Rehabilitation Exemption Certificate must be revoked on these floors. FINANCIAL IMPACT: The revocation would allow for the company to apply for a Neighborhood Enterprise Zone. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the revocation of a portion of the Commercial Rehabilitation Exemption Certificate. COMMITTEE RECOMMENDATION: None 11/17/2016 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION REVOKING A PORTION OF A COMMERCIAL REHABILITATION EXEMPTION CERTIFICATE (#C2013-011) Hinman Lake, LLC WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on January 22, 2013, this Commission by resolution established a Commercial Rehabilitation District as requested by Hinman Lake, LLC for the building at 316 Morris Ave, Muskegon, Michigan 49442; and WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on August 27, 2013, this Commission by resolution approved a Commercial Rehabilitation Exemption Certificate as requested by Hinman Lake, LLC for the building at 316 Morris Ave, Muskegon, Michigan 49442; and WHEREAS, the Commercial Rehabilitation Certificate was issued on December 16, 2013, by the Michigan State Tax Commission (#C2013-011); and WHEREAS, the project included the rehabilitation of floors one through five and did not include floors six and seven; and WHEREAS, on October 24, 2016, Hinman Lake, LLC requested in writing that they would like to transfer the Commercial Rehabilitation Exemption Certificate (#C2013-011) from the entire seven-story building located at 316 Morris Ave, Muskegon, to condo units one through five (i.e. floors 1-5) at 316 Morris Ave, Muskegon and to also revoke a portion of the Commercial Rehabilitation Exemption Certificate (#C2013-011), specifically condo units six and seven (i.e. floors 6-7); and WHEREAS, on November 22, 2016, this Commission by resolution approved the transfer of the Commercial Rehabilitation Exemption Certificate (#C2013-011) from the entire seven-story building located at 316 Morris Ave, Muskegon, to condo units one through five (i.e. floors 1-5) at 316 Morris Ave, Muskegon; and NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan that a portion of the Commercial Rehabilitation Exemption Certificate (#C2013-011), specifically condo units six and seven (i.e. floors 6-7), at 316 Morris Ave, Muskegon, shall be revoked. Adopted this 22nd Day of November, 2016. Ayes: Nays: Absent: BY: __________________________________ Stephen J. Gawron Mayor 11/17/16 ATTEST: __________________________________ Ann Meisch Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on November 22, 2016. ______________________________ Ann Meisch Clerk 11/17/16 Commission Meeting Date: November 22, 2016 Date: November 17, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate – 316 Morris Ave SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone Certificate has been received from Hinman Lake, LLC for the conversion of offices to apartments on the sixth and seventh floors of their building at 316 Morris Ave. The estimated project cost is $1,777,200 and will include 20 market rate apartments. The property was approved as a Neighborhood Enterprise Zone District on September 13, 2016. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: The taxes on floors six and seven will be frozen at the pre-rehabilitated rate for 12 years, with a three year phase out (they will receive 75% of the abatement in year 10, 50% in year 11 and 25% in year 12). BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 11/17/2016 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate for a rehabilitation facility has been filed with the City Clerk by Hinman Lake, LLC to rehabilitate floors six and seven in their building from commercial to residential apartments at 316 Morris Ave in the “Terrace Plaza” Neighborhood Enterprise Zone District, and; WHEREAS, the Neighborhood Enterprise Zone Certificate will only be applied to floors six and seven of the building at 316 Morris Ave, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the rehabilitation facility for apartments on the sixth and seventh floor at 316 Morris Ave by Hinman Lake, LLC be approved. Adopted this 22nd day of November, 2016. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 11/17/16 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on November 22, 2016. By: ________________________ Ann Meisch City Clerk 11/17/16 Date: November 22, 2016 To: Honorable Mayor and City Commissioners From: Frank Peterson, City Manager RE: Adopt a Resolution of Intent Regarding Recreational Authority SUMMARY OF REQUEST: To express the intent of the City of Muskegon to establish a recreational authority within the County of Muskegon and to appoint a representative of the City of Muskegon to join with the representatives from other like–minded municipalities to form a steering committee to prepare articles of incorporation for such a recreational authority, which would include the City of Muskegon within its territory. FINANCIAL IMPACT: None at this time. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To adopt the resolution expressing the intent of the City of Muskegon to establish a recreational authority within the County of Muskegon and to appoint a representative of the City of Muskegon to join with the steering committee. RECREATIONAL AUTHORITIES ACT Act 321 of 2000 AN ACT to provide for the establishment of recreational authorities; to provide powers and duties of an authority; to authorize the assessment of a fee, the levy of a property tax, and the issuance of bonds and notes by an authority; and to provide for the powers and duties of certain government officials. History: 2000, Act 321, Eff. Dec. 1, 2000. The People of the State of Michigan enact: 123.1131 Short title. Sec. 1. This act shall be known and may be cited as the “recreational authorities act”. History: 2000, Act 321, Eff. Dec. 1, 2000. ***** 123.1133 THIS SECTION IS AMENDED EFFECTIVE SEPTEMBER 12, 2016: See 123.1133.amended ***** 123.1133 Definitions. Sec. 3. As used in this act: (a) “Articles” means the articles of incorporation of an authority. (b) “Authority” means a recreational authority established under section 5. (c) “Board” means the board of directors of the authority. (d) “District” means a portion of a municipality having boundaries coterminous with those of a precinct used for general elections. (e) “Electors of the authority” means the qualified and registered electors of the participating municipalities who reside within the territory of the authority. (f) “Largest county” means, of those counties in which a participating municipality is located, the county having the greatest population. (g) “Municipality” means a city, county, village, or township. (h) “Park” means an area of land or water, or both, dedicated to 1 or more of the following uses: (i) Recreational purposes, including, but not limited to, landscaped tracts; picnic grounds; playgrounds; athletic fields; camps; campgrounds; zoological and botanical gardens; living historical farms; boating, hunting, fishing, and birding areas; swimming areas; and foot, bicycle, and bridle paths. (ii) Open or scenic space. (iii) Environmental, conservation, nature, or wildlife areas. (i) “Participating municipality” means a municipality or district that is named in articles of incorporation or proposed articles of incorporation as joining in the original establishment of an authority, or a municipality or district that joins an existing authority and is added to the articles of incorporation, and that has not withdrawn from the authority. (j) “Public historic farm” means a parcel of public land and its buildings that are accessible to the public, and provides, but is not limited to, agricultural and historical programs, farming activities and animal husbandry, community recreation activities and events, programs held in common areas, meeting rooms, and community gardens, and access to surrounding parkland. (k) “Swimming pool” includes equipment, structures, areas, and enclosures intended for the use of individuals using or operating a swimming pool, such as equipment, dressing, locker, shower, and toilet rooms. (l) “Territory of the authority” means the combined territory of the participating municipalities that is served by an authority. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003. ***** 123.1133.amended THIS AMENDED SECTION IS EFFECTIVE SEPTEMBER 12, 2016 ***** 123.1133.amended Definitions. Sec. 3. As used in this act: (a) "Articles" means the articles of incorporation of an authority. (b) "Authority" means a recreational authority established under section 5. (c) "Board" means the board of directors of the authority. (d) "District" means a portion of a municipality having boundaries coterminous with those of a precinct Rendered Thursday, August 4, 2016 Page 1 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov used for general elections. (e) "Electors of the authority" means the qualified and registered electors of the participating municipalities who reside within the territory of the authority. (f) "Largest county" means, of those counties in which a participating municipality is located, the county having the greatest population. (g) "Municipality" means a city, county, village, township, or school district. (h) "Park" means an area of land or water, or both, dedicated to 1 or more of the following uses: (i) Recreational purposes, including, but not limited to, landscaped tracts; picnic grounds; playgrounds; athletic fields; camps; campgrounds; zoological and botanical gardens; living historical farms; boating, hunting, fishing, and birding areas; swimming areas; and foot, bicycle, and bridle paths. (ii) Open or scenic space. (iii) Environmental, conservation, nature, or wildlife areas. (i) "Participating municipality" means a municipality or district that is named in articles of incorporation or proposed articles of incorporation as joining in the original establishment of an authority, or a municipality or district that joins an existing authority and is added to the articles of incorporation, and that has not withdrawn from the authority. (j) "Public historic farm" means a parcel of public land and its buildings that are accessible to the public, and provides, but is not limited to, agricultural and historical programs, farming activities and animal husbandry, community recreation activities and events, programs held in common areas, meeting rooms, and community gardens, and access to surrounding parkland. (k) "Swimming pool" includes equipment, structures, areas, and enclosures intended for the use of individuals using or operating a swimming pool, such as equipment, dressing, locker, shower, and toilet rooms. (l) "Territory of the authority" means the combined territory of the participating municipalities that is served by an authority. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003;Am. 2016, Act 174, Eff. Sept. 12, 2016. 123.1135 Recreational authority; establishment; articles of incorporation; adoption; applicability of subsection (3); publication; filing copy with secretary of state; effect. Sec. 5. (1) Two or more municipalities or districts may establish a recreational authority. A recreational authority is an authority under section 6 of article IX of the state constitution of 1963. (2) To initiate the establishment of an authority, articles of incorporation shall be prepared. The articles of incorporation shall include all of the following: (a) The name of the authority. (b) The names of the participating municipalities. (c) A description of the territory of the authority. (d) The size of the board of the authority, which shall be comprised of an odd number of members; the qualifications, method of selection, and terms of office of board members; and the filling of vacancies in the office of board member. If board members are elected in at-large elections by the qualified and registered electors of the participating municipalities, voting collectively, the election of board members shall be conducted pursuant to the same procedures that govern an election for a tax under sections 13 to 17. (e) The purposes for which the authority is established, which shall be the acquisition, construction, operation, maintenance, or improvement of 1 or more of the following: (i) A public swimming pool. (ii) A public recreation center. (iii) A public auditorium. (iv) A public conference center. (v) A public park. (vi) A public museum. (vii) A public historic farm. (f) The procedure and requirements for a municipality or district to become a participating municipality in, and for a participating municipality to withdraw from, an existing authority or to join in the original formation of an authority. For a municipality or district to become a participating municipality in an existing authority or to join in the original formation of an authority, a majority of the electors of the municipality or district proposed to be included in the territory of the authority and voting on the question shall approve a tax that the authority has been authorized to levy by a vote of the electors of the authority under section 11. A municipality or district shall not withdraw from an authority during the period for which the authority has been authorized to levy a tax by the electors of the authority. Rendered Thursday, August 4, 2016 Page 2 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov (g) Any other matters considered advisable. (3) The articles shall be adopted and may be amended by an affirmative vote of a majority of the members serving on the legislative body of each participating municipality. If a participating municipality is a district, the articles shall be adopted and may be amended by an affirmative vote of a majority of the members serving on the legislative body of the entire municipality. Unless the articles provide otherwise, the requirements of this subsection do not apply to an amendment to the articles to allow a municipality or district to become a participating municipality in, or to allow a participating municipality to withdraw from, an existing authority. (4) Before the articles or amendments to the articles are adopted, the articles or amendments to the articles shall be published not less than once in a newspaper generally circulated within the participating municipalities. The adoption of articles or amendments to the articles by a municipality or district shall be evidenced by an endorsement on the articles or amendments by the clerk of the municipality. (5) Upon adoption of the articles or amendments to the articles by each of the participating municipalities, a printed copy of the articles or the amended articles shall be filed with the secretary of state by the clerk of the last participating municipality to adopt the articles or amendments. (6) The authority's articles of incorporation, or amendments to the articles, take effect upon filing with the secretary of state. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003. 123.1137 Board of directors; vacancy; quorum; voting; reimbursement for expenses; conduct of public meeting; availability of writing; election of officers; adoption of bylaws. Sec. 7. (1) A vacancy occurs on the board on the happening of any of the events set forth in section 3 of 1846 RS 15, MCL 201.3. Appointed members of the board, if any, may be removed by the appointing authority for good cause after a public hearing. Vacancies shall be filled in the same manner as the original appointment for the unexpired term. (2) A majority of the members of the board constitutes a quorum for the purpose of conducting business and exercising the powers of an authority. Official action may be taken by an authority upon the vote of a majority of the board members present, unless the authority adopts bylaws requiring a larger number. (3) A member of the board shall not receive compensation for services as a member of the board but is entitled to reimbursement for reasonable expenses, including expenses for travel previously authorized by the board, incurred in the discharge of his or her duties. (4) The business that an authority may perform shall be conducted at a public meeting of the authority held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting shall be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. (5) A writing prepared, owned, or used by an authority in the performance of an official function shall be made available in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. (6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it considers necessary. A board shall meet at least quarterly. (7) A board may adopt bylaws to govern its procedures. History: 2000, Act 321, Eff. Dec. 1, 2000. 123.1139 Powers of authority. Sec. 9. An authority may do 1 or more of the following: (a) Acquire and hold, by purchase, lease with or without option to purchase, grant, gift, devise, land contract, installment purchase contract, bequest, or other legal means, real and personal property inside or outside the territory of the authority. The property may include franchises, easements, or rights of way on, under, or above any property. The authority may pay for the property from, or pledge for the payment of the property, revenue of the authority. (b) Apply for and accept grants or contributions from individuals, the federal government or any of its agencies, this state, a municipality, or other public or private agencies to be used for any of the purposes of the authority. (c) Hire full-time or part-time employees and retain professional services. (d) Provide for the maintenance of all of the real and personal property of the authority. (e) Assess and collect fees for services provided by and expenses incurred by the authority. (f) Receive revenue as appropriated by the legislature of this state or a participating municipality. (g) Enter into contracts incidental to or necessary for the accomplishment of the purposes of the authority. History: 2000, Act 321, Eff. Dec. 1, 2000. Rendered Thursday, August 4, 2016 Page 3 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov ***** 123.1141 THIS SECTION IS AMENDED EFFECTIVE SEPTEMBER 12, 2016: See 123.1141.amended ***** 123.1141 Tax levy; ballot proposal; vote; authorization; number of elections. Sec. 11. (1) An authority may levy a tax of not more than 1 mill for a period of not more than 20 years on all of the taxable property within the territory of the authority for the purposes of acquiring, constructing, operating, maintaining, and improving a public swimming pool, public recreation center, public auditorium or conference center, or public park. The authority may levy the tax only upon the approval of a majority of the electors in each of the participating municipalities of the authority voting on the tax on November 6, 2001 or, thereafter, at a statewide general or primary election. The proposal for a tax shall be submitted to a vote of the electors of the authority by resolution of the board. (2) A ballot proposal for a tax shall state the amount and duration of the millage and the purposes for which the millage may be used. A proposal for a tax shall not be placed on the ballot unless the proposal is adopted by a resolution of the board and certified by the board not later than 60 days before the election to the county clerk of each county in which all or part of the territory of the authority is located for inclusion on the ballot. The proposal shall be certified for inclusion on the ballot at the next eligible election, as specified by the board's resolution. (3) If a majority of the electors in each of the participating municipalities of the authority voting on the question of a tax approve the proposal as provided under subsection (1), the tax levy is authorized. Not more than 2 elections may be held in a calendar year on a proposal for a tax authorized under this act. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003. ***** 123.1141.amended THIS AMENDED SECTION IS EFFECTIVE SEPTEMBER 12, 2016 ***** 123.1141.amended Public swimming pool, public recreation center, public auditorium, or conference center, or public park; tax levy; ballot proposal; vote; authorization; number of elections; proceeds; use. Sec. 11. (1) An authority may levy a tax of not more than 1 mill for a period of not more than 20 years on all of the taxable property within the territory of the authority for the purposes of acquiring, constructing, operating, maintaining, and improving a public swimming pool, public recreation center, public auditorium or conference center, or public park. The authority may levy the tax only upon the approval of a majority of the electors in each of the participating municipalities of the authority voting on the tax on November 6, 2001 or, thereafter, at a statewide general or primary election. The proposal for a tax shall be submitted to a vote of the electors of the authority by resolution of the board. (2) A ballot proposal for a tax shall state the amount and duration of the millage and the purposes for which the millage may be used. A proposal for a tax shall not be placed on the ballot unless the proposal is adopted by a resolution of the board and certified by the board not later than 60 days before the election to the county clerk of each county in which all or part of the territory of the authority is located for inclusion on the ballot. The proposal shall be certified for inclusion on the ballot at the next eligible election, as specified by the board's resolution. (3) If a majority of the electors in each of the participating municipalities of the authority voting on the question of a tax approve the proposal as provided under subsection (1), the tax levy is authorized. Not more than 2 elections may be held in a calendar year on a proposal for a tax authorized under this act. (4) The proceeds of a tax levied under this section shall only be used by the authority for those purposes described in this section and shall not be used by the authority for either of the following: (a) Except as otherwise provided in subsection (5), any general fund purposes by any participating municipality. (b) Any school operating purposes, as that term is defined in section 20 of the state school aid act of 1979, 1979 PA 94, MCL 388.1620, by any participating municipality that is a school district. (5) The proceeds of a tax levied under this section may be used for general fund purposes by a participating municipality if the proceeds used are directly related to managing the operation of the business of the authority pursuant to a contract between the authority and that participating municipality. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003;Am. 2016, Act 173, Eff. Sept. 12, 2016. ***** 123.1142.added THIS ADDED SECTION IS EFFECTIVE SEPTEMBER 12, 2016 ***** 123.1142.added Preferences or benefits to be offered to residents. Sec. 12. If a majority of electors in each of the participating municipalities of the authority voting on the Rendered Thursday, August 4, 2016 Page 4 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov question of a tax as provided in section 11 approve the tax, the authority shall consider offering preferences or benefits for the residents of the participating municipalities that include, but are not limited to, any of the following: (a) Discounted admission fees. (b) Discounted membership fees. (c) Discounts for school children. (d) Access to educational programs. History: Add. 2016, Act 173, Eff. Sept. 12, 2016. 123.1143 Tax election; ballots provided by county election commission; conduct; list of qualified electors. Sec. 13. (1) The county election commission of each county in which all or part of a participating municipality is located shall provide ballots for an election for a tax under section 11 for each participating municipality or part of a participating municipality located within the county. (2) An election for a tax shall be conducted by the city and township clerks and election officials of the municipalities located within the territory of the authority. (3) If an election on a proposal for a tax is to be held in conjunction with a general election or state primary election and if a participating village is located within a nonparticipating township, the township clerk and election officials shall conduct the election. Not later than 45 days preceding the election, the village clerk shall provide to the township clerk a list containing the name, address, and birth date of each qualified and registered elector of the village residing in the territory of the authority. Not later than 15 days before the election, the village clerk shall provide to the township clerk information updating the list as of the close of registration. A person appearing on the list as updated is eligible to vote in the election by special ballot. History: 2000, Act 321, Eff. Dec. 1, 2000. 123.1145 Notices of close of registration and election; publication; certification of election results. Sec. 15. (1) If an election for a tax under section 11 is to be held in conjunction with a general election or a state primary election, the notices of close of registration and election shall be published as provided for by the state election laws. Otherwise, the county clerk of the largest county shall publish the notices of close of registration and election. The notice of close of registration shall include the ballot language of the proposal. (2) The results of an election for a tax shall be canvassed by the board of county canvassers of each county in which a participating municipality is located. The board of county canvassers of a county in which a participating municipality is located and that is not the largest county shall certify the results of the election to the board of county canvassers of the largest county. The board of county canvassers of the largest county shall make the final canvass of an election for a tax based on the returns of the election inspectors of the participating municipalities in that county and the certified results of the board of county canvassers of every other county in which a participating municipality is located. The board of county canvassers of the largest county shall certify the results of the election to the board of the authority. History: 2000, Act 321, Eff. Dec. 1, 2000. 123.1147 Tax election; costs; reimbursement; basis. Sec. 17. (1) A county clerk shall charge the authority and the authority shall reimburse the county for the actual costs the county incurs in an election for a tax under section 11 that occurs on November 6, 2001. (2) If a participating municipality conducts an election for a tax, the clerk of that participating municipality shall charge the authority and the authority shall reimburse the participating municipality for the actual costs the participating municipality incurs in conducting the election if the election is not held in conjunction with a regularly scheduled election in that municipality. (3) In addition to costs reimbursed under subsection (1) or (2), a county or municipality shall charge the authority and the authority shall reimburse the county or municipality for actual costs that the county or municipality incurs and that are exclusively attributable to an election for a tax authorized under this act. (4) The actual costs that a county or municipality incurs shall be based on the number of hours of work done in conducting the election, the rates of compensation of the workers, and the cost of materials supplied in the election. History: 2000, Act 321, Eff. Dec. 1, 2000. 123.1149 Collection and distribution of tax. Sec. 19. The tax shall be collected with county taxes and distributed by the local tax collecting unit under Rendered Thursday, August 4, 2016 Page 5 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov the provisions of the general property tax act, 1893 PA 206, MCL 211.1 to 211.157. History: 2000, Act 321, Eff. Dec. 1, 2000. 123.1151 Borrowing money or issuing bonds or notes. Sec. 21. (1) An authority may borrow money and issue bonds or notes to finance the acquisition, construction, and improvement of a public swimming pool, a public recreation center, a public auditorium, a public conference center, or a public park, including the acquisition of sites and the acquisition and installation of furnishings and equipment for these purposes. (2) An authority shall not borrow money or issue bonds or notes for a sum that, together with the total outstanding bonded indebtedness of the authority, exceeds 2 mills of the taxable value of the taxable property within the district as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. (3) Bonds or notes issued by an authority are a debt of the authority and not of the participating municipalities. (4) A tax levied to pay a bond or note obligation by a recreational authority under this act shall not exceed 5 years without the approval of a majority of the electors in each of the participating municipalities of the authority. (5) All bonds or notes issued by a recreational authority under this act are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2002, Act 233, Imd. Eff. Apr. 29, 2002;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003. 123.1153 Issuance of general obligation unlimited tax bonds; submission of proposal for vote; ballot language; conduct of election; authorization and levy of tax. Sec. 23. (1) An authority may issue general obligation unlimited tax bonds upon approval of a majority of the electors in each of the participating municipalities of the authority voting on the question of issuing the bonds. The proposal to issue general obligation unlimited tax bonds shall be submitted to a vote of the electors of the authority by resolution of the board. (2) The language of the ballot proposal shall be in substantially the following form: “Shall [name of authority], formed by [names of participating municipalities], borrow the sum of not to exceed __________ dollars ($ __________) and issue its general obligation unlimited tax bonds for all or a portion of that amount for the purpose of __________? This is expected to result in an increase of _______ in the tax levied on property valued at _______ for a period of _______ years. Yes [ ] No [ ]”. (3) The election shall be conducted in the manner provided in sections 11 to 17 for an election for a tax. Not more than 2 elections on the question of issuing general obligation unlimited tax bonds may be held in a calendar year. (4) If an authority issues general obligation unlimited tax bonds under this section, the board, by resolution, shall authorize and levy the taxes necessary to pay the principal of and interest on the bonds. History: 2000, Act 321, Eff. Dec. 1, 2000;Am. 2003, Act 135, Imd. Eff. Aug. 1, 2003. 123.1155 Refunding outstanding debt obligations. Sec. 25. (1) An authority may borrow money and issue its negotiable bonds and notes for the purpose of refunding outstanding debt obligations of the district by resolution of the board, without submitting the question to the electors of the authority. (2) Refunding bonds or the refunding part of a bond issue shall be considered to be within the 2-mill limitation of section 21(2). (3) An authority may borrow money and issue bonds or notes for refunding all or part of existing bonded or note indebtedness only if the net present value of the principal and interest to be paid on the refunding bonds or notes, excluding the cost of issuance, will be less than the net present value of the principal and interest to be paid on the bonds or notes being refunded, as calculated using a method approved by the department of treasury. History: 2000, Act 321, Eff. Dec. 1, 2000. 123.1157 Annual audit; preparation of budgets and appropriations acts; powers, duties, and immunities; filing financial plan to correct deficit condition; investment or deposit of funds. Rendered Thursday, August 4, 2016 Page 6 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov Sec. 27. (1) A board shall obtain an annual audit of the authority, and report on the audit and auditing procedures, in the manner provided by sections 6 to 13 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit shall also be in accordance with generally accepted government auditing standards as promulgated by the United States general accounting office and shall satisfy federal regulations relating to federal grant compliance audit requirements. (2) An authority shall prepare budgets and appropriations acts in the manner provided by sections 14 to 19 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.434 to 141.439. (3) The state treasurer, the attorney general, a prosecuting attorney, bank, certified public accountant, certified public accounting firm, or other person shall have the same powers, duties, and immunities with respect to the authority as provided for local units in sections 6 to 20 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.440. (4) If an authority ends a fiscal year in a deficit condition, the authority shall file a financial plan to correct the deficit condition in the same manner as provided in section 21(2) of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.921. (5) The board may authorize funds of the authority to be invested or deposited in any investment or depository authorized under section 1 of 1943 PA 20, MCL 129.91. History: 2000, Act 321, Eff. Dec. 1, 2000. Rendered Thursday, August 4, 2016 Page 7 Michigan Compiled Laws Complete Through PA 270 of 2016 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov Muskegon County Recreation Steering Committee November 2016 Meeting Minutes Recreation Steering Committee Minutes from November 9, 2016 1. Staff Update- Connie Maxim-Sparrow provided the group an update on the current status of resolutions completed or in process that she was aware of. Muskegon Township successful completed their resolution. The City of Montague did notify staff that they were not interested in the effort. Muskegon Heights, Muskegon and Oakridge were very interested in the resolution’s being adopted. A variety of meetings have been scheduled with requests for staff to attend to answer any questions that elected officials may have regarding the resolution. 2. Member Report Out – a. The group did provide a member report out by municipality. There was a general consensus that there are many questions still pending. The group, throughout report out discussed the need for a frequently asked questions document to share with councils across the county. Many had the same or similar questions. b. There was a wide array of reports, all generally holding the same statement, the December deadline needed to be extended. A good majority of people were waiting for the local elections to be completed. There were all but two municipalities who had changes in leadership and elected officials. This change in leadership has certainly provided a challenge to the conversation. It was determined that the deadline for the current intent resolution to be adopted would be moved to January 2017. c. The group was also provided staff commitment to help support each entity’s meeting to discuss the resolution and help to answer any questions. Committee members were reminded to send meeting support requests to Connie Maxim-Sparrow. City of Muskegon, Fruitport Township/City, City of Roosevelt Park and Laketon Township have all formerly requested to have staff in attendance at local municipality meetings. 3. Steering Committee Officers – due to the nature of the report out discussion, it was determined that all committee officer nominations will take place after the holidays when resolutions have been completed and the group is more defined as it moves forward. 4. Next Meeting Date and Location – the next meeting date was set for January 4th, 2017 at 6:00 PM at the city of Muskegon, City Hall. The address is 933 Terrace St., Muskegon, Michigan 49442. Important Dates and Committee Requests for Follow Up 1. Connie to provide meeting minutes, handouts, state wide list of recreation authorities in Michigan and frequently asked questions to the group to help with resolution discussions at the local level. 2. Both staff and committee members are encouraged to attend the City of Muskegon’s work session scheduled for November 22, 2016 at 5:30 PM at Muskegon City Hall to Muskegon County Recreation Steering Committee November 2016 Meeting Minutes discuss the resolution and share with the Commission. The address is 933 Terrace St. Muskegon, Michigan 49442. 3. Staff requested to attend upcoming work sessions and meetings with Laketon Township, Roosevelt Park, Village of Fruitport, Fruitport Township, and City of Muskegon. Those dates were mentioned at the meeting, staff is still requesting that each committee member please notify staff of specific dates, times and locations. Muskegon County Recreation Authority Frequently Asked Questions 1. If my community adopts the resolution presented, will the local unit of government lose control of its park or recreational amenities? NO The purpose of a Recreational Authority is to allow local operational control and direction of all recreational amenities. There is no requirement or expectation that the authority will take over local deeded or owned property. The authority is very flexible in handling property and recreational improvements to properties not in site control of the authority itself. 2. If my community passes the current resolution, are we locked into forming the recreation authority? NO The purpose of the resolution is to show intent by each local unit of government willing to craft articles of incorporation and establish a governance structure for the authority. There is no formal request to form the authority in front of local units of government. The current resolution is to simply state intent to form. A second, formal resolution to form the authority will be presented at a later date. 3. If my community agrees to be an organizing or founding entity with the recreational authority, is there an ability to leave the authority at any point in the future? YES Communities currently not interested in forming the authority may join at any time in the future. Also, those communities or local units of government that are interested in leaving the authority at any time, can certainly leave the authority. The articles of incorporation will lay out all steps specific to entering and leaving the formal authority. 4. Are School Districts allowed to join the recreational authority? YES School districts are listed as local units of government that can become part of the authority. 5. Are there other recreational authorities in the State of Michigan? YES A complete list of those authorities that have formed are included with the frequently asked questions. Muskegon County Recreation Authority Frequently Asked Questions 6. Will the recreation authority pursue a mileage to support funding of recreational development? NO The recreational authority has the ability to pursue a variety of funding strategies. This includes grants, fundraising, private donations and many other ways to fund recreational development. There is the option to pursue a millage but that would be decided by the authority at a future point in time. There are a variety of ways to raise money to support comprehensive recreational development. The recreational authority expands the tool box or resources available to the county and its partners. 7. Will projects be aimed at county-wide development? How will my local municipality know that local projects will be supported? YES Projects will be laid out in a comprehensive recreational plan, similar to master planning documents used to determine strategic investment and capital improvement. Those projects will be listed accordingly to support funding and capital raised to support development. The structure to determine which projects are top priority has not been determined and will be written within the bylaws and articles of incorporation that are presented at the time of authority formation to local units of government. 8. Who can I contact if I have further questions? Connie Maxim-Sparrow, connie@hatchaplanmi.com 231-670-5863 __________________________(municipality name) MUSKEGON COUNTY STATE OF MICHIGAN RESOLUTION OF INTENT REGARDING RECREATIONAL AUTHORITY RESOLUTION NO. ___________ WHEREAS, the Recreational Authorities Act, Public Act 321 of 2000, MCL 123.1131, et. seq., as amended (the “Act”), allows two or more municipalities or districts to establish a recreational authority; and WHEREAS, a municipality is defined in the Act as including cities, counties, villages, townships or school districts; and WHEREAS, a recreational authority may have for its purpose the acquisition, construction, operation, maintenance, or improvement of 1 or more of the following: a public swimming pool, a public recreation center, a public auditorium, a public conference center, a public park, a public museum and/or a public historic farm; and WHEREAS, a recreational authority may apply for and accept grants or contributions from individuals, the federal government or any of its agencies, the State of Michigan, a municipality, or other public or private agencies to be used for any of the purposes of the authority; and WHEREAS, a recreational authority may levy a tax of not more than 1 mill for a period of not more than 20 years on all taxable property within the territory of the authority for the purposes of the authority, provided the tax levy be approved by a majority of the electors in each of the participating municipalities of the authority voting on the tax at a statewide general or primary election; and WHEREAS, the proceeds of a tax levied pursuant to the Act shall only be used by the authority for the authority’s stated purposes, and only in the manner proscribed by the Act; and WHEREAS, a recreational authority may exercise any other power allowed by the Act to achieve its purposes; and WHEREAS, other municipalities in and/or including the County of Muskegon have expressed their intent to establish a recreational authority pursuant to the Act; and WHEREAS, the _________________(council/board) of the _______________________________ (municipality name) believes that the purposes for which a recreational authority may be created could benefit the citizens of the _______________________________ (municipality name); NOW THEREFORE BE IT RESOLVED that the _________________(council/board) of the _______________________________ (municipality name) expresses its intent to establish a recreational authority within and/or including the County of Muskegon as a participating municipality. To further that goal, the _________________(council/board) appoints __________________________(name) to join with representatives from other like-minded municipalities to form a steering committee to prepare articles of incorporation for such a recreational authority, which would include the _______________________________ (municipality name) within its territory. Motion by ________________________, seconded by ________________________. Vote: ___________ Aye ___________ Nay This Resolution declared adopted at a regular meeting of the ___________________________ and open to the public on ____________________, 2016. _______________________________ Clerk 2 O:\CLERK\Common\Word\Agenda Items for Next Meeting\2016\112216\Resolution of Intent - Muskegon County Recreation Authority.docx
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