City Commission Packet 02-28-2017

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    CITY OF MUSKEGON
     CITY COMMISSION MEETING
                  FEBRUARY 28, 2017
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                              AGENDA

□   CALL TO ORDER:
□   PRAYER:
□   PLEDGE OF ALLEGIANCE:
□   ROLL CALL:
□   HONORS AND AWARDS:
□   INTRODUCTIONS/PRESENTATION:
□   CITY MANAGER’S REPORT:
□   CONSENT AGENDA:
    A. Approval of Minutes City Clerk
    B. Approval of Resolution to Apply for State Grant to Purchase New Voting
       Equipment      City Clerk
    C. Approval of Resolution in Support of Naming Third Street from
       Muskegon to Mason City Clerk
    D. 2017 Dozer Rental for Beach Leveling         Department of Public Works
    E. Buekema Park Roof Materials        DPW/Parks Department
    F. One Year Janitorial Services Extension, Optional Year through
       4/30/2018      Engineering
    G. Contract Extension Agreement – 1 Year Street Sweeping Contract for
       2017     Department of Public Works
    H. Lake Michigan Sandy Dog Concession Contract for City of Muskegon
       Parks   Department of Public Works
    I. Copier/Printer Maintenance Agreement Assistant Finance Director
    J. Contract for Demolition at 239 Monroe Avenue            Community and
       Neighborhood Services Department
    K. Set Public Hearing for Amendment to Brownfield Plan – Windward

                                      Page 1 of 2
           Pointe       Planning & Economic Development Department
       L. Defined Benefit Plan Adoption Agreements – Div 01(Non-Union) and Div
          21 (Police Patrol)    Finance
□   PUBLIC HEARINGS:
       A. Parks & Recreation Master Plan Amendment Department of Public
          Works
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
       A. Concurrence with the Housing Board of Appeals Notice and Order to
          Demolish Sixteen Residential Structures Director of Public Safety
       B. Sale of a Non-Buildable Vacant Lot in the Port City Industrial Park
           Planning & Economic Development Department
       C. Second Quarter 2016-17 Budget Reforecast                           Finance Director
□ 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: February 23, 2017

Here is a quick outline of the items on our agenda:

1.     Under the consent agenda, we are asking the Commission for approval of the following:
       a. Last meeting’s minutes.
       b. Authorization for the City Clerk to apply for a state grant to purchase new polling
          equipment.
       c. A Resolution designating Third Street from Muskegon Avenue to Mason Avenue as
          Mid-Town Muskegon.
       d. The annual dozer rental to begin leveling Pere Marquette Park Beach.
       e. The purchase of materials to replace the roof at the Buekema Park Building. Staff
          will be undertaking the labor internally.
       f. A one-year extension of our current janitorial service contract.
       g. A concession contract with Sandy Dog Concessions to operate at Pere Marquette
          Park. The contract would allow them to operate in the parking lot near the filtration
          plant.
       h. A maintenance and purchase agreement for a number of existing and new copiers
          and printers at city hall. We are not replacing all of the copiers and printers, as a
          number of them have plenty of life left, but we are replacing a number of our units
          that carry high maintenance and toner costs.
       i. Contract to demolish the house at 239 Monroe. The City acquired this house in 2016.
          It is located behind the 3rd Street Market. This will be a key improvement related to
          the newly designated Mid-Town Square business district as well as the homes we are
          selling down the street.
       j. Set a public hearing for the Windward Pointe Brownfield Plan
       k. Pension Plan Benefit changes for both the POLC and Non-Represented Units. These
          resolutions will formalize the changes approved last meeting. Once we send these
          to MERS, the long-term picture of our DB costs will become much more clear.
     l.   Under public hearings, we will take comments on an update to the Parks and
          Recreation Master Plan to identify certain needs at the Hartshorn Marina as
          important/necessary. We feel that this will help as we seek out grants to accomplish
          these improvements.

2.   Under new business, we will be asking the Commission to approve the following:
        a. We will concur with the Housing Board of Appeals to demolish 16 houses. These
           houses will be demolished as part of a program we are working on in conjunction
           with the Muskegon County Landbank.
        b. Sale of a non-buildable lot in the industrial park to help offset the purchaser’s need
           to own/secure/protect wetlands as part of a wetlands mitigation requirement.
           The sales proceeds will be deposited into our economic development revolving
           loan fund to help provide gap financing for projects like Unit 7, the Ameribank
           Building, and Heritage Square.
        c. Approval of the 2nd Quarter Reforecast. A bit item to note in this reforecast is that
           the General Fund is now trending a $351,000 deficit. From a staff standpoint, we
           are not overly worried about this trend, as we have yet to implement the full MERS
           benefit changes into the budget (we expect to do this as part of the 3rd Quarter
           Reforecast). The main culprit for the deficit is less-than-expected income tax
           receipts; this is specifically related to corporates taxes, as we had some large
           refunds early in the fiscal year. Expenses are actually only up a little bit ($86,000),
           and we believe that by the end of the fiscal year those will level back out, as we
           have had periods in a number of departments where retirements/attrition has
           taken place and positions were vacant for a number of weeks/months.
Date:      February 22, 2017
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Meisch, City Clerk
RE:        Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the February 13, 2017
Worksession and the February 14, 2017 Regular City Commission Meetings.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                              CITY OF MUSKEGON
                        CITY COMMISSION WORKSESSION

                              Monday, February 13, 2017
                                      5:30 p.m.
                              City Commission Chambers

                                    MINUTES

2017-08
Present:     German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
             Warren
Absent:      None


Third Street Group Presentation
Representatives from several Third Street businesses seek the City Commission’s
support of their businesses and spoke in support of beautifying the Third Street
business area and renaming the corridor to Midtown. Various business owners
described the nature of their businesses. The Clerk and a representative of Downtown
Muskegon Now will work on writing a resolution. There are concerns about parking.

Greater Muskegon Recreation Partnership
Doug Hughes, representing the Muskegon County Recreational Authority, presented
information on Recreation Authorities including the steps to creating an authority,
articles of incorporation, voting, filing, powers, and taxes.

Any Other Business

   Resolution in Support of Muskegon Heights Public School Academy System
   Commissioner Ken Johnson composed and presented a resolution for consideration
   by the Commission. This item to be placed under New Business on the Regular City
   Commission Meeting Agenda for February 14, 2017.

   Property use at BC Cobb Plant
   Discussion took place on what the land use(s) might possibly be for the property
   located at BC Cobb Plant and the potential for a variety of purposes as well as the
   potential for new jobs.

   Quality of Life Millage
   There was discussion regarding the potential of including the LC Walker Arena in a
   Quality of Life Millage, discussion to continue.




                                           1
Wages and Salaries
Frank presented information regarding the Wage and Salary changes that will be on
the Regular City Commission Agenda on February 14, 2017. There were comments
regarding the demographics and diversification of our non-represented employees.


Adjournment
Moved by German, second by Hood, to adjourn the meeting at 7:52 p.m.

                                    Respectfully Submitted,



                                    Ann Marie Meisch, MMC
                                    City Clerk




                                      2
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     FEBRUARY 14, 2017
    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, February 14, 2017. Pastor
Leroy Lockhart, New Birth Ministries, 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 Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr., Dan Rinsema-Sybenga, and Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2017-09     CONSENT AGENDA:
          A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the January 24, 2017 Regular
City Commission Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
          E. Annual Pavement Marking Program Department of Public Works
SUMMARY OF REQUEST: Staff is requesting permission to enter into annual
contractual agreements with the Muskegon County Road Commission (MCRC)
and their designated Contractor for Centerline Painting and Special Pavement
Markings. This contract bid is awarded by the MCRC and also for local agencies
in the Muskegon County Pavement Marking Group, to enter into, with each
member being billed separately by the designated Contractor for painting
services requested.
FINANCIAL IMPACT:         Estimated costs are projected to be $25,000 annually,
for both Centerline Painting and Specialty Pavement Markings.
BUDGET ACTION REQUIRED:       None, contractual work has been budgeted for
in the Highway Majors budget.
STAFF RECOMMENDATION:           Approve request to enter into annual contracts

                                          Page 1 of 8
with MCRC and their designated Contractor for Centerline Painting and Special
Pavement Markings.
          F. Grand Trunk Launch Ramp Dock Purchase Department of Public
             Works
SUMMARY OF REQUEST: Authorize staff to purchase two replacement floating
docks from Stabil-Float Systems LLC for Grand Trunk launch ramp.
Both floating docks currently at Grand Trunk are not usable due to wear and
age.
FINANCIAL IMPACT:         Total Cost $21,540.00.
BUDGET ACTION REQUIRED:         None – contingent upon approval of 2nd Quarter
Budget Reforecast.
STAFF RECOMMENDATION:         To approve purchase from Stabil-Float System LLC.
          H. Sale of Boat Slip A-11 Pigeon Key Marina Condominium Department
             of Public Works
SUMMARY OF REQUEST: Authorize the Mayor & Clerk to sign the attached
purchase agreement with Mr. & Mrs. Geisler for boat Slip A-11 at Pigeon Key
Marina since they submitted the highest bid of $20,195.
FINANCIAL IMPACT:          The sale price of $20,195 less associated fees will be
used to settle the city’s obligations regarding this slip.
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:           Authorize the Mayor and Clerk to sign the
purchase agreement.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, minus items B, C, D, G, and I.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
             Nays: None
MOTION PASSES
2017-10      ITEMS REMOVED FROM CONSENT AGENDA:
          B. Adopt a Resolution Approving the Request of the City Clerk to Apply
             for a Liquor License for the City’s Farmer’s Market City Clerk
SUMMARY OF REQUEST: It was recently discovered that we are eligible to apply
for a Liquor License for the Farmer’s Market. We qualify as a Municipality with a
Civic Center. We are asking the Commission to adopt a resolution approving
the request to apply for a Liquor License which is a permanent license, to be
utilized at the Farmer’s Market which qualifies as a Civic Center.

                                          Page 2 of 8
FINANCIAL IMPACT:         Approximately $600 annually.
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Adopt a resolution approving the request of the
City Clerk to apply for a Liquor License for the City’s Farmers Market.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
adopt a resolution approving the request of the City Clerk to apply for a Liquor
License for the City’s Farmers Market.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
             Nays: None
MOTION PASSES
         C. Pedestrian Crossing at Intersection of Shoreline Drive and Third Street
            Planning & Economic Development
SUMMARY OF REQUEST: The City of Muskegon Planning Department has been
consulting with TrafficScapes by Ennis-Flint for potential upgrades to pedestrian
crossings on Shoreline Drive in downtown Muskegon. Initially, three locations (3rd,
4th, and 7th) were under consideration, but the City has decided to move
forward with one crossing at the Shoreline Drive – 3rd Street intersection.
The upgrades would include enhanced pavement markings using TrafficPatterns
stamped-brick treatment for the full length of the crossing. The enhanced
crossing would be similar in appearance to what was installed on Lakeshore
Drive in Lakeside, and downtown on W. Western, Muskegon, and Webster
Avenues.
The Michigan Department of Transportation has agreed to partner with the City
on the project with the objective of reviewing how the product performs at the
Shoreline Drive – 3rd Street crossing. The upgrades will be the first step in a long-
term plan coordinated with MDOT for improving pedestrian crossings along
Shoreline Drive.
FINANCIAL IMPACT:           The final price for the work provided by the applicator is
$14,183.55. This price will include all prep-work such as cleaning and/or pressure
washing of the area, and existing line removal. $7,091.77 (50% of the total cost)
will come from the City of Muskegon’s street fund; the remaining $7,091.78 will
be from the MDOT contractual services fund.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:             Authorize staff to enter into a contract with
TrafficScapes by Ennis-Flint to install the TrafficPatterns product at the Shoreline
Drive – 3rd Street pedestrian crossing.
Motion by Commissioner German, second by Vice Mayor Hood, to authorize

                                           Page 3 of 8
staff to enter into a contract with TrafficScapes by Ennis-Flint to install the
TrafficPatterns product at the Shoreline Drive – 3rd Street pedestrian crossing.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
             Nays: None
MOTION PASSES
         D. Ameribank Building – Option Agreement Extension Between the City
            of Muskegon and Port City Construction & Development Services,
            LLC Planning & Economic Development
SUMMARY OF REQUEST: The City entered into an Option Agreement with Port
City Construction & Development Services, LLC for the former Ameribank
Building at 800 First Street on May 17, 2016. The term of the initial Option was
through October 1, 2016. As allowed for in the Agreement, an extension through
January 1, 2017 was later requested and approved (with the Extension payment
of $2,000). Port City Construction & Development Services, LLC is now requesting
a further extension through June 30, 2017 (which includes another payment of
$2,000).
FINANCIAL IMPACT:        The Agreement Extension allows for more time for the
potential purchaser to package the redevelopment of the building in order to
renovate it and put it back into productive use. Future occupants will generate
taxes for the City.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:          To approve the Option Agreement Extension
between the City of Muskegon and Port City Construction & Development
Services, LLC through June 30, 2017 and authorize the Mayor and Clerk to sign
all necessary documents, including closing documents at the time of sale.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the Option Agreement Extension between the City of Muskegon and
Port City Construction & Development Services, LLC through June 30, 2017 and
authorize the Mayor and Clerk to sign all necessary documents, including
closing documents at the time of sale.
Motion by Commissioner Johnson, second by Commissioner German, to table
the item and refer to staff until March 14, 2017.
ROLL VOTE: Ayes: Johnson and German
             Nays: Turnquist, Gawron, Hood, Warren, and Rinsema-Sybenga
MOTION FAILS
VOTE ON FIRST MOTION


                                          Page 4 of 8
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Gawron, Hood, and Warren
            Nays: Johnson and German
MOTION PASSES
         G. Police Vehicles            DPW/Equipment
SUMMARY OF REQUEST: Due to General Motors closing their Chevy Caprice line
of Police Vehicles, we are asking the Commission to rescind the prior
Commission approval on October 25, 2016 to purchase three Chevy Caprice
Cruisers and authorize staff to purchase three (3) Police SUV’s instead from
Gorno Ford the Mi-Deal State contract holder.
FINANCIAL IMPACT:        $83,994.00 or $27,998.00
BUDGET ACTION REQUIRED:         None. Amount is what was budgeted.
STAFF RECOMMENDATIONS:        Authorize staff to purchase 3 Police SUV’s from
Gorno Ford the State Mi-Deal contract holder.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to authorize staff to purchase 3 Police SUV’s from Gorno Ford the State Mi-Deal
contract holder.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
         I. Non-Represented Wages and Benefits          City Manager
SUMMARY OF REQUEST: As part of the city’s efforts to reorganize its operations
into a more sustainable structure and to address rising pension costs, a number
of changes are proposed to the non-represented Wages and Benefits. The
changes include the reduction of the non-represented pension multiplier from
2.25 to 2.0, a 3% wage increase, the relocation of a number of positions on the
wage/salary table, and changes to the fringe benefit package.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the non-represented wage and
benefit structure, as presented.
Motion by Commissioner Warren, second by Vice Mayor Hood, to approve the
non-represented wage and benefit structure, as presented.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None

                                         Page 5 of 8
MOTION PASSES
2017-11 PUBLIC HEARINGS:
      A. Request to Create a New Neighborhood Enterprise Zone District at 275
          W. Clay Avenue      Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
of 1992, the developer of the Berkshire Muskegon project has requested to
create a new Neighborhood Enterprise Zone (NEZ) district for the parcel at 275
W. Clay Avenue. Properties located in this NEZ district will be eligible to apply for
NEZ certificates, which will lower the residential property taxes on new
construction. Notice letters were sent to the taxing jurisdictions on December 13,
2016 and a public hearing was held on January 24, 2017. State law requires that
the resolution must be adopted at least 60 days after the notice letters were
sent. This project will include 16 market-rate units.
FINANCIAL IMPACT:           No financial impact at this point. However, being in a
district will allow them to apply for a rehab NEZ certificate, which will lower the
residential property taxes for 1 to 15 years.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ district.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the new NEZ district.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
             Nays: None
MOTION PASSES
2017-12      NEW BUSINESS:
      A. Approval of Sale of City-owned Home at 867 Williams Street
           Community and Neighborhood Services Department
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services Department to complete the sales transaction with
Nancy Crider for the totally rehabilitated home at 867 Williams Street: purchase
price $58,900.
FINANCIAL IMPACT:         The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the resolution and direct the CNS
staff to complete the sale.

                                          Page 6 of 8
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the resolution and direct the CNS staff to complete the sale.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
      B. Adopt a Resolution in Support of Muskegon Heights Public School
         Academy System        City Clerk
SUMMARY OF REQUEST: To adopt a resolution in support of Muskegon Heights
Public School Academy System prepared by Commissioner Kenneth Johnson
and presented at the February 13, 2017 Worksession Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To adopt the resolution.
Motion by Commissioner Johnson, second by Vice Mayor Hood, to approve the
resolution.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
            Nays: None
MOTION PASSES
      C. Community Relations Committee Recommendations for the Various
         Boards and Committees   City Clerk
SUMMARY OF REQUEST: To concur with the recommendations from the
Community Relations Committee regarding appointments and resignations and
to make the following board appointments:
~ Local Development Finance Authority:        Kevin Ricco, Patricia Camp, and
                                              Justin Jennings
~ Business Improvement District:       Bruce Lindstrom, Bob Tarrant, and Phyllis
                                       Loudermill
~ Citizen’s Police Review Board:       Carlos Flores, William Mohammed, Ann
                                       Craig, Ellouise Hieftje, Quintan Cooley, and
                                       Karla Betten
~ Board of Review:       Bryon Mazade, Ralph Burr, and Sandra Boone-Thomas
~ Construction Code Board of Appeals:         Lane Bensten, Vicki Luthy, and Wade
                                              VandenBosch


                                          Page 7 of 8
~ Election Commission: Louis Sypke
~ Equal Opportunity Commission:        Leroy Lockhart and Steven Santo
~ Housing Commission: Derrick Smith (Appointment by City Manager)
~ Income Tax Board of Review:          Catherine Young
~ Local Officers Compensation Commission:              Todd Susterich
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:      Approve the recommendations of the
Community Relations Committee from their February 13, 2017 meeting.
COMMITTEE RECOMMENDATION:        Approve the recommendations of the
Community Relations Committee from their February 13, 2017 Meeting.
Motion by Vice Mayor Hood, second by Commissioner Turnquist, to concur with
the CRC recommendations of appointments.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German.
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission meeting was adjourned at 7:00 p.m.


                                             Respectfully Submitted,




                                             Ann Marie Meisch, MMC, City Clerk




                                         Page 8 of 8
Date:       February 22, 2017
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Meisch, City Clerk
RE:         Approval of Resolution to Apply for State Grant to
            Purchase New Voting Equipment




SUMMARY OF REQUEST: To approve a Resolution to Apply for State Grant
to Purchase New Voting Equipment. All municipalities in the State of Michigan
are in the process of obtaining new voting equipment. Most or all of the cost
will be covered by Federal Help America Vote Act funds and state-
appropriated funds. The State requires the City to apply for a grant in order to
be eligible for state funding assistance.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the resolution.
                                 RESOLUTION # 2017-_______
      At a regular meeting of the City Commission of the City of Muskegon, County of Muskegon,
Michigan held on February 28, 2017, at the City Hall in said City at 5:30 p.m.

PRESENT:
ABSENT:

     The following resolution was offered by Commissioner _____________ and was supported by
Commissioner _______________:

RESOLUTION TO APPLY FOR STATE GRANT TO PURCHASE NEW VOTING EQUIPMENT


       WHEREAS, the City wishes to apply to the Secretary of State for a grant to purchase a new
voting system, which includes precinct tabulators, Absent Voter Counting Board (AVCB) tabulators,
accessible voting devices for use by individuals with disabilities, and related Election Management
System (EMS) software.

       WHEREAS, partial funding for the new voting system will be provided by the State, and will
include a combination of Federal Help America Vote Act and State-appropriated funds.

       WHEREAS, the State requires the City to apply for a grant in order to be eligible for state
funding assistance.

        WHEREAS, the City plans to begin implementation of the new voting system pursuant to the
direction from the County of Muskegon.

NOW, THEREFORE, BE IT RESOLVED on this 28th day of February, 2017, that the City Clerk is
authorized to submit the required grant application to the State and the County Clerk to acquire funds for
new voting equipment, on behalf of the City of Muskegon, Muskegon County.

AYES:
NAYS:

RESOLUTION DECLARED ADOPTED                          ____________________________________
                                                     Ann Marie Meisch, MMC
                                                     City Clerk

         I, the undersigned, being duly qualified and acting Clerk of the City of Muskegon, do hereby
certify that the foregoing is a true and complete copy of certain proceedings taken by the City Commission
for the City of Muskegon at a regular meeting held on the 28th day of March, 2017 and that notice of said
meeting was given in accordance with the Open Meetings Act.


Ann Marie Meisch, MMC                                Date
Muskegon City Clerk
Date:      February 22, 2017
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Meisch, City Clerk
RE:        Approval of Resolution in Support of Naming Third
           Street from Muskegon to Mason




SUMMARY OF REQUEST: To approve a Resolution in Support of
Designating Third Street from Muskegon to Mason as Midtown Muskegon.
FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the resolution.
              RESOLUTION IN SUPPORT OF NAMING THIRD STREET
                       FROM MUSKEGON TO MASON


WHEREAS, Third Street from Muskegon Avenue to Mason Street has experienced a
resurgence of growth with new businesses and development; and

WHEREAS, at its February 13, 2017 Work Session meeting, the business owners along
this section of Third Street came forward and requested the City Commission name this
area of the City of Muskegon as Midtown; and

WHEREAS, naming this section of Third Street will assist the business owners located
on Third Street in marketing and branding as well as give an identity to that shopping
corridor; and

WHEREAS, whereas the City Commission supports the businesses on Third Street and
are enthused about the growth the area has experienced and its future potential;

NOW, THEREFORE BE IT RESOLVED that the City of Muskegon Commissioners do
hereby name Third Street from Muskegon Avenue to Mason Street as Midtown and
shall refer to this section as Midtown from here going forward.

Witnessed this 28th day of February 2017.



                                                     _____________________
                                                       Stephen J. Gawron
                                                             Mayor


                                                     _____________________
                                                       Ann Marie Meisch
                                                          City Clerk
                            AGENDA ITEM NO._____________

                 CITY COMMISSION MEETING: FEBRUARY 28, 2017



TO:           Honorable Mayor and City Commission


FROM:         Department of Public Works


DATE:         February 14, 2017


SUBJECT:      2017 Dozer Rental for Beach Leveling


SUMMARY OF REQUEST:
Staff is requesting permission to enter into a rental agreement with Southeastern Equipment Co.
Inc., out of Novi, MI for a Case 2050M Dozer for leveling sand at Pere Marquette Beach.


FINANCIAL IMPACT:
Estimated cost for the 2017 Dozer rental is $8,500 (which includes $1000 for delivery and
pickup).


BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Approve request.


COMMITTEE RECOMMENDATION:
                                                             City of Muskegon




Memo
 To:     Mohammed Al-Shatel
 From:   Doug Sayles
 Date:   2/3/17
 Re:     Dozer Rental for Annual Beach Leveling at PM Park



 Below are 3 solicited bids for the dozer rental for the Highway Departments’ beach
 leveling project for 2017.

 Michigan CAT submitted a bid proposal of $7,699 per month plus $900 for delivery and
 pickup, plus an Environmental Fee of $11 for a total of $8,610.

 Southeastern Equipment Co., Inc. submitted a proposal of $7,500 per month plus
 $1000 for delivery and pickup for a total of $8,500.

 Contractors Rental Corporation submitted a proposal of $9,000 per month plus $550
 for delivery and pickup, for a total of $9,550.

 Based on the availability of the dozer and the tabulated bids above, Southeastern
 Equipment Co., Inc. is the lowest bidder.

 Therefore, DPW Supervisory Staff is requesting permission to rent the Case 2050M
 dozer from Southeastern Equipment Co. Inc. for leveling the beach at PM Park, for
 2017.




 1
Date:    February 9, 2017

To:      Honorable Mayor and City Commissioners

From: DPW/Parks Dept.
RE:       Beukema Park Roof Materials


SUMMARY OF REQUEST:

Authorize staff to purchase roofing material to reconstruct the restroom building roof and
repair two other smaller building roofs on the property. Work will be performed in house
by Parks Staff.


FINANCIAL IMPACT:
The total cost of this purchase is $13,535.64 from Keene Lumber being the responsible low
bidder. (Rycenga Building Center $16,792.23, Weber Lumber $24,398.24)



BUDGET ACTION REQUIRED:
None at this time as this proposed purchase was budgeted for.


STAFF RECOMMENDATION:
Authorize staff to purchase the roof materials.



COMMITTEE RECOMMENDATION:
Date:        February 28, 2017
To:          Honorable Mayor and City Commissioners
From:        Engineering
RE:          One Year Janitorial Services Extension, Optional Year
             through 4/30/2018


SUMMARY OF REQUEST:
Extend the current janitorial services contract with Reliant Professional Cleaning for one
more year, thru the end of April 2018, as per the attached request from the company.

FINANCIAL IMPACT:
The total annual cost of the proposed extension to clean City Hall, P.D, DPW & Filtration
Plant is $62,316 which is an increase of $1,308 or just over 2.1%.



BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Approve the one year extension with Reliant Professional Cleaning Services to provide
janitorial services until the end of April of 2018 at City Hall, DPW & Filtration.



COMMITTEE RECOMMENDATION:
                             AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:            Honorable Mayor and City Commission


FROM:          Department of Public Works


DATE:          February 28, 2017


SUBJECT:       Contract Extension Agreement-1 year Street Sweeping Contract for 2017


SUMMARY OF REQUEST:
To exercise the option for a 1-year contractual extension, as outlined in the previous 3-year
contract with TRI-US SERVICES, INC., to provide street sweeping services for 2017.


FINANCIAL IMPACT:
$202,135.50 cost for the 1 year contract extension. Funds to cover all expenses are budgeted.
Trunkline expenses are reimbursed by State funding.


BUDGET ACTION REQUIRED:
None; monies appropriated in Highway and State trunkline budgets


STAFF RECOMMENDATION:
Approve request to contract out service for a 1-year extension as specified in previous contract.
To:     Honorable Mayor and City Commission
From:   DPW Staff
Date:   2/14/17
Re:     Street Sweeping Extension-2017



The DPW Staff is requesting permission to exercise its contractual option (per the
2014-16 contract) to enter into 1-year contractual agreement with TRI-US
SERVICES, INC, to provide street sweeping services for 2017.

TRI-US SERVICES, INC., 78 Ball Creek NW, Kent City. Mi has been our sole
street sweeping contractor from 1997 to present. During the course of those years
they have provided excellent service to our community and its residents. They also
have been the low bidder in each of the 5 previous bids (1997-99, 2002-4, 2006-8,
2010-12 and 2014-16). They have either held their price or added a slight increase
each time an extension (2000/2001/2005/2009/2013) has been approved.
1997 thru 1999 contract                                                3 year totals
TRI-US SERVICES, INC.     bid $104,130.76 x 3 years                    $312,392.28
SANI-SWEEP, INC.          bid $123,867.76 x 3 years                    $371,603.28

2002 thru 2004 contract                                                3 year totals
TRI-US SERVICES, INC.     bid $113,662.24 x 3 years                    $340,986.72
SANI-SWEEP, INC.          bid $156,879.56 x 3 years                    $470,638.68

2006 thru 2008 contract                                                3 year totals
TRI-US SERVICES, INC.     bid $148,981.60 x 3 years                    $446,944.80
SANI-SWEEP, INC.          bid $203,602.40 x 3 years                    $610,807.20

2010 thru 2012 contract                                                3 year totals
TRI-US SERVICES, INC.     bid $139,700.50 x 3 years                    $419,101.50
SANI-SWEEP, INC.          bid $190,057.60 x 3 years                    $570,172.80

2014 thru 2016 contract                                                3 year totals
TRI-US SERVICES, INC.     bid $202,135.50 x 3 years                    $606,406.50
SANI-SWEEP, INC.          bid $330,009.60 x 3 years                    $990,028.80


TRI-US SERVICES, INC.                                                  1 year totals
2000 contract extension   $104,130.76 x 1 year-(held price)             $104.130.76
2001 contract extension   $107,775.33 x 1 year-(3.5% fuel surcharge)    $107,775.33


                                                                                       1
2005 contract extension       $137,866.40 x 1 year-(fuel/operating costs)   $137,866.40
2009 contract extension       $148,981.60 x 1 year-(held price)             $148, 981.60
2013 contract extension       $139,700.50 x 1 year-(held price)             $139, 700.50




At this time staff is proposing to enter into a 1 year contract extension with TRI-US
SERVICES, INC and they have submitted the following proposal:

2017 contract extension ----City of Muskegon Roadways------------ $188,275.50
                            State of Michigan (MDOT) Roadways--$ 13,860.00

                                                  TOTAL          $202,135.50




TRI-US SERVICES, INC. has held their 2014-16 contract price of $202,135.50 for
the proposed 2017 contract extension. They continue to provide us with excellent
customer service and meet all of our special request needs with little or no prior
notice. They will continue to sweep the city roadways 4 times during the period
from April 1st to October 15th, 2017 as stipulated in the previous 2014-16 contract.

Therefore, at this time, staff is recommending to the Commission to approve the
request to enter into agreement with TRI-US SERVICES, INC.




                                                                                           2
                            AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:           Honorable Mayor and City Commission


FROM:         Department of Public Works


DATE:         February 28, 2017


SUBJECT:      Lake Michigan Sandy Dog Concession Contract for City of Muskegon Parks.


SUMMARY OF REQUEST:
Staff is asking permission to enter into a 1-year contractual agreement with Jeff Taylor &
Michelle Sharpy of Lake Michigan Sandy Dog, at Pere Marquette Park, located within the City
of Muskegon, to sell various food items, as stated in their proposal, from a mobile concession
trailer.


FINANCIAL IMPACT:
Concession revenue is 10% of gross receipts.


BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Authorize DPW staff to enter into concession agreement with Jeff Taylor and Michelle Sharpy of
Lake Michigan Sandy Dog.


COMMITTEE RECOMMENDATION:
Commission Meeting Date: February 28, 2017

Date:      February 16, 2017
To:        Honorable Mayor and City Commission
From:      Community and Neighborhood Services Department
Re:       Contract for Demolition at 239 Monroe Ave
___________________________________________________________
SUMMARY OF REQUEST: To approve for Community and Neighborhood
Services to execute a contract with Melching Inc., 16942 Woodlane Drive,
Nunica MI, 49448, for the demolition of the structure located at 239 Monroe
Avenue. This activity is under the Target Neighborhood Blight Flight Program.
The following bids were received:
  • JMB Demolition LLC, 7357 Barry St., Zeeland MI, for $9,250
  • Melching Inc, 16942 Woodlane Drive, Nunica MI, for $8,600
FINANCIAL IMPACT: The funding will be allocated from the City’s CDBG
Funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request.
          Commission Meeting Date: February 28, 2017




Date:         February 20, 2017
To:           Honorable Mayor & City Commission
From:         Planning & Economic Development Department
RE:           Set Public Hearing for Amendment to Brownfield
              Plan- Windward Pointe


SUMMARY OF REQUEST: To approve the attached resolution setting a public
hearing for an amendment for the Brownfield Plan, and notifying taxing jurisdictions
of the Brownfield Plan Amendment including the opportunity to express their views
and recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property owned by Pure Muskegon, located at
2400 Lakeshore Drive, in the Brownfield Plan.

FINANCIAL IMPACT: Brownfield Tax increment Financing will be used to reimburse
the developer for “eligible expenses” incurred in association with development of the
Watermark project, which is approximately $44,863,763. Pure Muskegon cost for the
development of the property is approximately $200 million in private investment,
resulting in a substantial increase in the local and school taxes generated by the
property.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To approve the attached resolution and authorize the
Mayor and Clerk to sign the resolution.

COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met
on February 16, 2017 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon City
Commission.
               RESOLUTION NOTIFYING TAXING UNITS,
                  MICHIGAN STRATEGIC FUND; AND
         MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY
             AND CALLING PUBLIC HEARING REGARDING
    APPROVAL OF AMENDMENTS TO THE BROWNFIELD PLAN OF THE
    CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY


                                  City of Muskegon
                            County of Muskegon, Michigan
                       ___________________________________

       Minutes of a Regular Meeting of the City Commission of the City of

Muskegon, County of Muskegon, Michigan (the "City"), held in the City offices, on

the 28th day of February, 2017 at 5:30 o'clock p.m., prevailing Eastern Time.

PRESENT:

Members__________________________________________________________

__________________________________________________________________

ABSENT:       Members

__________________________________________________________________

       The following preamble and resolution were offered by Member

_________________ and supported by Member _________________:

       WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the

"City") is authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as

amended ("Act 381"), to create a brownfield redevelopment authority; and

       WHEREAS, pursuant to Act 381, the City Commission of the City duly

established the City of Muskegon Brownfield Redevelopment Authority (the

"Authority"); and
       WHEREAS, in accordance with the provisions of Act 381, the Authority has

prepared and approved Brownfield Plan Amendments to include the Windward

Pointe Development Project, and

       WHEREAS, the Authority has forwarded the Brownfield Plan Amendments

to the City Commission requesting its approval of the Brownfield Plan Amendments

and

       WHEREAS, prior to approval of the Brownfield Plan Amendments, the

Muskegon City Commission desires to hold a public hearing in connection with

consideration of the Brownfield Plan Amendments as required by Act 381; and

       WHEREAS, prior to approval of the Brownfield Plan Amendments, the City

Commission is required to provide notice and a reasonable opportunity to the taxing

jurisdictions levying taxes subject to capture to express their views and

recommendations regarding the Brownfield Plan Amendments, and to provide

notice to the Michigan Strategic Fund (MSF) and the Michigan Department of

Environmental Quality (MDEQ).

       NOW, THEREFORE, BE IT RESOLVED THAT:

       1.     The City Commission hereby acknowledges receipt of the Brownfield

Plan Amendments from the Authority and directs the City Clerk to send notice of

the proposed Brownfield Plan Amendments to the governing body of each taxing

jurisdiction in the City, the MSF, and the MDEQ notifying them of the City

Commission's intention to consider approval of the Brownfield Plan Amendments

[after the public hearing described below]; and that a copy of the Plan is available

for public inspection at the Muskegon City Clerk’s Office.
       2.     A public hearing is hereby called on the 28th of March, 2017 at 5:30

p.m., prevailing Eastern Time, in the City Hall Commission Chambers to consider

adoption by the City Commission of a resolution approving the Brownfield Plan

Amendments.

       3.     The City Clerk shall notice said public hearing. The notice shall be

not less than 10 days before the date set for the public hearing

       4.     The notice of the hearing shall be in substantially the following form:



                             CITY OF MUSKEGON
                   COUNTY OF MUSKEGON, STATE OF MICHIGAN


 PUBLIC HEARING ON AN AMENDMENT TO THE MUSKEGON BROWNFIELD
    PLAN, AS APPROVED BY THE CITY OF MUSKEGON BROWNFIELD
                  REDEVELOPMENT AUTHORITY


TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON:

        PLEASE TAKE NOTICE that the Muskegon City Commission of the City of
Muskegon, Michigan, will hold a public hearing on March 28, 2017, at 5:30 p.m.,
prevailing Eastern Time in the City Hall Commission Chambers located at 933
Terrace Street, Muskegon, Michigan, to consider the adoption of a resolution
approving a Brownfield Plan Amendment for the City of Muskegon Brownfield
Redevelopment Authority pursuant to Act 381 of the Public Acts of Michigan of
1996, as amended.

       The property to which the proposed Brownfield Plan Amendment applies is:

               Windward Pointe Development Project
                     2400 Lakeshore Drive
                   Muskegon, Michigan 49441

    Former Sappi Fine Paper property, north of Lakeshore Drive
Copies of the proposed Brownfield Plan Amendment are on file at the office of the
City Clerk for inspection during regular business hours.

       At the public hearing, all interested persons desiring to address the City
Commission shall be afforded an opportunity to be heard in regard to the approval
of the Brownfield Plan Amendments for the City of Muskegon Brownfield
Redevelopment Authority. All aspects of the Brownfield Plan Amendments will be
open for discussion at the public hearing.

      FURTHER INFORMATION may be obtained from the City Clerk.

     This notice is given by order of the City Commission of the City of
Muskegon, Michigan.


                                        _____________________________
                                        Ann Marie Meisch, City Clerk
        5.    All resolutions and parts of resolutions insofar as they conflict with

the provisions of this resolution be and the same hereby are rescinded.

AYES:        Members

__________________________________________________________________

__________________________________________________________________

NAYS:        Members

__________________________________________________________________

RESOLUTION DECLARED ADOPTED.



                                         _____________________________
                                         Ann Marie Meisch, City Clerk
      I hereby certify that the foregoing is a true and complete copy of a resolution

adopted by the City Commission of the City of Muskegon, County of Muskegon,

State of Michigan, at a regular meeting held on February 28, 2017, and that said

meeting was conducted and public notice of said meeting was given pursuant to

and in full compliance with the Open Meetings Act, being Act 267, Public Acts of

Michigan, 1976, as amended, and that the minutes of said meeting were kept and

will be or have been made available as required by said Act.



                                         _____________________________
                                         City Clerk
 


 
 
 
 

           BROWNFIELD PLAN AMENDMENT 
                                 
                       TO CONDUCT 
    ELIGIBLE MDEQ & MSF ENVIRONMENTAL ACTIVITIES 
                                 
                                 
            WINDWARD POINTE REDEVELOPMENT 
                  2400 LAKESHORE DRIVE 
               MUSKEGON, MICHIGAN 49441 
                                 
                    CITY OF MUSKEGON 
         BROWNFIELD REDEVELOPMENT AUTHORITY 
 
 
                 Revision Date: February 8, 2017 
                                 
 
                           Prepared by: 
                                  
                   Lakeshore Environmental, Inc. 
                800 Monroe Street NW, Suite 120 
                  Grand Rapids, Michigan 49503 
              Contact Person: Kirk W. Perschbacher 
            Email: kirkp@lakeshoreenvironmental.com 
                       Phone: 616‐844‐5050 
                                  
                      Project #: 15‐3147‐01 



 
 
                                                             TABLE OF CONTENTS 
 
1.0  Introduction and Purpose ............................................................................................... 1 
  1.1  Proposed Redevelopment and Future Use ......................................................................... 1 
    1.2  Eligible Property Information ............................................................................................. 2 
    1.2.1 Property Eligibility and Location ......................................................................................... 2 
    1.2.2 Current Ownership ............................................................................................................. 2 
    1.2.3 Proposed Future Ownership ............................................................................................... 3 
    1.2.4 Delinquent Taxes, Interest, and Penalties .......................................................................... 3 
    1.2.5 Existing and Proposed Future Zoning ................................................................................. 3 
    1.3  Historical and Previous Use and Owner of the Eligible Property ....................................... 3 
    1.3.1 Historical Use ...................................................................................................................... 3 
    1.3.2 Previous Ownership ............................................................................................................ 3 
    1.4  Current Use of the Eligible Property ................................................................................... 3 
    1.5  Site Conditions and Known Environmental Contamination Summary ............................... 4 
    1.6  Functionally Obsolete, Blighted and/or Historic Conditions .............................................. 4 
2.0  Scope of Work and Costs  ................................................................................................ 5 
                                 .
  2.1  DEQ Eligible Activities ......................................................................................................... 5 
    2.1.1 BEA Activities ...................................................................................................................... 5 
    2.1.2 Due Care Activities .............................................................................................................. 5 
    2.1.3 Interest ................................................................................................................................ 7 
    2.1.4 Develop/Prepare Act 381 Brownfield Plan Amendment .................................................... 7 
    2.2  MSF Eligible Activities ......................................................................................................... 7 
    2.3  Local Only Eligible Activities  ............................................................................................... 7 
                                       .
    2.4  Eligible Activities Costs and Schedules ............................................................................... 7 
    2.4.1 Schedule of MDEQ & MSF Eligible Activities ...................................................................... 8 
3.0  Tax Increment Revenue Analysis ................................................................................... 10 
  3.1  Captured Taxable Value and Tax Increment Revenues Estimates ................................... 10 
    3.2  Combined Plan Financing Method .................................................................................... 10 
    3.3  Note or Bonded Indebtedness .......................................................................................... 10 
    3.4  Tax Increment Revenues Capture Period ......................................................................... 10 
    3.5  Impact of Tax Increment Financing .................................................................................. 11 
    3.6  LSRRF Proposed Use ......................................................................................................... 11 


                                                                          ii 
 
 
4.0  Relocation ..................................................................................................................... 12 
  4.1  Current Residents and Displacement ............................................................................... 12 
    4.2  Displaced Persons Relocation Plan ................................................................................... 12 
    4.3  Relocation Cost Provisions ................................................................................................ 12 
    4.4  Compliance with Michigan’s Relocation Assistance Law ................................................. 12 
                                                                  
                                                             EXHIBITS 
FIGURES 
Figure 1                 Scaled Property Location Map 
Figure 2                 Eligible Property Map 
Figure 3                 Preliminary Concept Rendering 
Figure 4                 Known Contamination Maps 
Figure 5                 Historical Aerial Photographs 
 
TABLES 
Table 1                  MDEQ & MSF Eligible Activities 
Table 2                  Tax Increment Financing Estimates and Schedule 
 
ATTACHMENTS 
Attachment A             Resolution Approving Brownfield Plan Amendment 
Attachment B             Development and Reimbursement Agreement 
 
 




                                                                   iii 
 
 
1.0  INTRODUCTION AND PURPOSE 
The City of Muskegon, Michigan (the “City”) has established the City of Muskegon Brownfield 
Redevelopment  Authority  (the  “MBRA”)  pursuant  to  Michigan  Public  Act  381  of  1996,  as 
amended  (“Act  381”).    Formation  of  the  MBRA  allows  the  City,  MBRA,  and  Owners  the 
opportunity  to  take  advantage  of  the  incentives  and  tools  available  under  Act  381  for  the 
purpose of encouraging the redevelopment of eligible property.       
 
As  such,  this  Brownfield  Plan  Amendment  (the  “Plan”)  has  been  prepared  to  satisfy  the 
requirements  of  Act  381  for  including  the  eligible  property  described  in  Section  1.2.1  and 
designated  as  2400  Lakeshore  Drive,  City  of  Muskegon,  Muskegon  County,  Michigan  (the 
“Property”  or  “Eligible  Property”),  into  a  Plan,  to  be  implemented  by  the  City,  that  facilitates 
the  use  of  tax  increment  revenues  for  reimbursement  of  eligible  activities  under  Act  381.  
Implementation of this Plan will enable Pure Muskegon (PM), the new owner (“the Owner”), to 
invest  significant  private  funds  in  safely  revitalizing  this  Property,  commonly  referred  to  as  a 
“Brownfield.”  Redevelopment of the Property will spur economic growth and job creation for 
the  benefit  of  the  residents  of  the  City  and  associated  taxing  units,  and  will  improve  the 
environmental and aesthetic conditions of the Property.     
 
This Plan is intended to apply to the Eligible Property identified in this Plan and, if tax increment 
revenues are proposed to be captured from that Eligible Property, to identify and authorize the 
eligible  activities  to  be  funded  by  such  tax  increment  revenues.    Any  change  in  the  owner  or 
future developer, or proposed use of the Eligible Property shall not necessitate an amendment 
to  this  Plan,  affect  the  application  of  this  Plan  to  the  Eligible  Property,  or  impair  the  rights 
available to the MBRA under the Plan. 
 
This  Plan  is  intended  to  be  a  living  document,  which  may  be  modified  or  amended  in 
accordance with the requirements of Act 381, as necessary to achieve the purposes of Act 381.  
The applicable sections of Act 381 are noted throughout the Plan for reference purposes. 
 
This Plan contains information required by Section 13(1) and 15(25) of Act 381. 
   
       1.1 Proposed Redevelopment and Future Use 
        PM and the City of Muskegon desire a mix of uses for the Property, which could include, 
        but are not limited to the following: 
         
             Residential  –  ranging  from  single  family  living  to  continuing  care  retirement 
               facilities  (potentially  including  independent  living,  assisted  living,  and  nursing 
               home  care);  types  of  living  areas  may  consist  of  exclusive  waterfront, 
               detached/attached, mixed density, and rental/ownership 
             Commercial ‐ offices, retail, restaurants,  marinas, and marina related businesses  



                                                       1 
 
 
 
           Recreational ‐ park and open greenspace, and boating opportunities 
       
      Private  investment  in  the  completed  project  is  projected  at  approximately 
      $200,000,000, and upwards of 50 permanent full time jobs and countless construction 
      jobs will be generated.     
       
      A scaled Property Location Map and Eligible Property Map are provided as Figures 1 and 
      2, respectively.  A Preliminary Concept Rendering is provided as Figure 3.     
               
    1.2 Eligible Property Information 
     The following sections provide details on the Eligible Property location, ownership and 
     use. 
      
     1.2.1 Property Eligibility and Location 
           Under Section 2(q) of Act 381, the Property meets the definition of a facility and 
           is  considered  an  “Eligible  Property”  (as  defined  by  Act  381,  Section 2(o)).    The 
           Property is not comprised of adjacent or contiguous parcels.   
            
           The  Eligible  Property  is  located  at  2400  Lakeshore  Drive,  City  of  Muskegon, 
           Muskegon  County,  Michigan  (Sections  26  &  27,  Township  10  N,  Range  17  W).  
           More specifically, the Property consists of approximately 119 acres of contiguous 
           industrial land with nearly 1.0 mile of frontage along Muskegon Lake.  The parcel 
           number for the Eligible Property is 24‐205‐598‐0001‐00 (see Figures 1 and 2). 
            
           The legal description of the Property is provided below: 
            
           CITY  OF  MUSKEGON  REVISED  PLAT  OF  1903  BLKS  598  599  600  601  602  603  & 
           604  EXC  WLY  260  FT  ALSO  RICHARDS  ST  VAC  FROM  N  LN  LAKESHORE  DR  TO 
           SHORE OF MUSKEGON LAKE EXC C&O ROW ALSO LOT 19 BLK 597 EXC COM @ SE 
           COR SD LOT 19 TH NWLY ON ELY LN SD LOT 125 FT TH WLY 70 FT TH SELY 125 FT 
           TO S LN SD LOT TH ELY 70 FT TO BEG SUBJ TO UTILITY ESMT 2251/225 SUBJ TO 
           UTILITY ESMT 2251/228  
            
     1.2.2 Current Ownership  
             The  Property  is  owned  by  Pure  Muskegon,  LLC.    PM  have  owned  the  Property 
             since July 2016.  Contact information is provided below. 




                                                 2 
 
 
           Pure Muskegon, LLC 
           1218 East Pontaluna Road Suite B 
           Norton Shores, MI 49456 
            
     1.2.3 Proposed Future Ownership 
           PM may be transferring all or portions of the Property to prospective developers. 
            
     1.2.4 Delinquent Taxes, Interest, and Penalties 
           There are no known delinquent taxes, interest or penalties associated with the 
           Property. 
            
     1.2.5 Existing and Proposed Future Zoning 
             The Property is currently zoned industrial.  Future property use will be approved 
             by the City of Muskegon prior to any specific proposed development.   
              
    1.3 Historical Use and Previous Use Ownership of the Eligible Property 
      
     1.3.1 Historical Use 
     The  Property  was  developed  in  1874  as  Rogers  Sawmill.    Central  Paper  Company  began 
     paper  production  in  1899.    S.D.  Warren  purchased  the  Property  from  Central  Paper 
     Company in 1953, and Sappi Fine Paper (Sappi) purchased the Property from S.D. Warren in 
     1994.    Sappi  shut  down  the  pulp  mill  in  2005,  and  discontinued  all  operations  in  2009.  
     Melching, the most recent former Property owner, purchased the Sappi facility on August 
     25, 2011.  Since the date of purchase, Melching has been conducting demolition activities. 
      
     1.3.2 Previous Ownership 
                         Owner                                        Approximate Dates 
      Rogers Sawmill                                     1874‐1899 
      Central Paper Company                              1899‐1953 
      S.D. Warren                                        1953‐1994 
      Sappi Fine Paper                                   1994‐2011 
      Melching, Inc.                                     2011‐2016 
      Pure Muskegon, LLC                                 2016‐present 
       
    1.4 Current Use of the Eligible Property  
     Current  Property  activities  include  finishing  the  demolition  of  the  former  buildings, 
     footing  and  foundations  by  Melching,  Inc.,  and  is  scheduled  to  be  completed  in  July 




                                                  3 
 
 
      2016.    Site  preparation  activities,  including  due  care  investigation,  are  also  being 
      undertaken at the current time. 
 
    1.5 Site Conditions and Known Environmental Contamination Summary 
      Between April 2012 and September 2014, numerous environmental investigations have 
      occurred on the Property to further evaluate the 19 known items of concern, the lime 
      storage  pile  (LSP),  and  the  coal  storage  areas.    These  investigations  have  included 
      sampling  and  analysis  of  soil,  groundwater,  surface  water,  and  sediments.  
      Investigations at the Property have focused on the area encompassing all of the known 
      releases, which were located in the central portion of the Property.  However, additional 
      data has been collected outside of the area of known releases as part of on‐going due 
      care  activities  at  the  Property.    A  minimum  of  15  reports  have  been  submitted  to  the 
      DEQ to summarize environmental activities at the Property, including a Closure Report, 
      which  was  submitted  in  draft  form  in  November  2014.    Data  provided  in  the  Closure 
      Report  demonstrated  that  no  chemicals  of  concern  (COC)  are  leaving  the  Property 
      above  applicable  criteria,  with  one  exception,  the  hydronium  ion  (pH).    High  pH 
      groundwater  caused  by  lime  in  the  LSP  is  present  below  the  LSP  and  migrates  in  a 
      northwest  direction  off‐Property  into  the  sediments  of  Muskegon  Lake.    The  high  pH 
      groundwater  does  not  have  a  measurable  effect  on  the  actual  surface  water  in 
      Muskegon Lake.  The high pH groundwater at the LSP is being addressed through source 
      removal,  neutralization,  cover  of  the  LSP,  natural  attenuation,  and  a  groundwater 
      treatment system.  It is anticipated that closure of the LSP will achieved by the end of 
      2017.     
       
    1.6 Functionally Obsolete, Blighted and/or Historic Conditions 
      The  Property  is  a  facility  and  has  not  been  designated  by  the  City  as  functionally 
      obsolete, blighted, or a Property of significant historical significance. 
       
 




                                                  4 
 
 
2.0  SCOPE OF WORK AND COSTS 
2.1   DEQ Eligible Activities 
      As  a  result  of  the  investigation  work  and  considering  the  Owner’s  desire  to  properly 
      redevelop  the  Property,  due  care  and  response  activities  are  necessary  to  prevent 
      exacerbation  and  unacceptable  exposure  to  materials  hazardous  to  human  health, 
      safety, and the environment.  New school and local tax increment revenues generated 
      from the increase in taxable value following redevelopment will be captured to pay back 
      the eligible activity costs incurred by the Owner. 
       
      School tax capture proposed for purposes of Owner reimbursement will be to the extent 
      permitted under Act 381.   The MBRA intends to capture the full school operating and 
      state  education  taxes  (SET);  however,  three  mills  of  the  SET  will  be  transferred  to  the 
      Michigan Department of Treasury for deposit into the State Brownfield Redevelopment 
      Fund  and  will  not  be  utilized  for  reimbursement  relating  to  eligible  activity  costs 
      associated with this project. 
       
      Specific details related to the eligible activities in this Plan are discussed in the following 
      subsections.  
                
      2.1.1  BEA Activities 
              Phase I ESA, Phase II ESA & Baseline Environmental Assessment (BEA) 
              The Owner completed an AAI ASTM E1527‐13 Phase I ESA, a Phase II ESA and a 
              BEA related to the known soil/groundwater contamination at the Property. 
       
            The  cost  to  complete  current  and  future  BEA  Activities  are  detailed  in  Table 
            1. 
       
      2.1.2 Due Care/ Additional Response Activities 
              Additional Due Care Sampling/Investigation 
              Additional  soil  and  groundwater  sampling  will  be  necessary  to:  (1)  properly 
              manage  unforeseen  environmental  conditions  encountered  during 
              redevelopment of the Property, (2) address soil/groundwater contamination as it 
              relates  to  ongoing  due  care,  and  (3)  assess  soil  and  groundwater  in 
              redevelopment areas where limited data exists. 
               
               
               
               



                                                   5 
 
 
            Sheeting and Shoring 
            Due  to  unstable  fill  material  (both  shallow  subsurface  and  at  depth)  and  the 
            shallow depth of groundwater across the Property, sheeting and shoring will be 
            required to safely conduct response activities during redevelopment. 
            Contaminated Soil Removal 
            In accordance with Section 20107a of Part 201, it may be necessary to excavate 
            and properly dispose (at a Type II landfill) impacted soils that are unable to be 
            utilized at the Property.  The contaminated soil will need to be transported to a 
            Type  II  landfill  for  disposal  (i.e.  Muskegon  County  Landfill,  Muskegon  MI  or 
            Ottawa  County  Farms  Landfill,  Coopersville,  Michigan).    Although  the  cost  of 
            excavating soil is a planned development cost (not an MDEQ eligible activity), the 
            need to transport and dispose of the contaminated soil to a Type II landfill is an 
            extra Owner incurred cost that is eligible for reimbursement. 
             
            To  prevent  exacerbation  and  unacceptable  exposures,  clean  material  will  be 
            used  to  replace  the  impacted  soils  in  the  areas  where  contaminated  soil  is 
            removed.   
             
            Dewatering      
            To prevent exacerbation and unacceptable exposures from occurring as a result 
            of dewatering required for redevelopment, all construction derived groundwater 
            from  dewatering  exercises  will  be  sent  to  the  local  sanitary  sewer  system  for 
            treatment,  which  has  been  determined  to  be  the  most  cost  effective  means  of 
            management.   
         
            While  the  actual  dewatering  costs  are  not  an  eligible  activity,  the  need  to 
            transport  and  dispose  the  contaminated  groundwater  to  the  sanitary  sewer 
            system are eligible MDEQ activities. 
     
            Stormwater Best Management Practices 
            As  the  Property  is  located  along  Muskegon  Lake  and  due  to  impacted 
            soils/groundwater  the  Property,  additional  costs  for  stormwater  best 
            management  practices  will  be  incurred  in  order  to  prevent  exacerbation  and 
            negative effects on Muskegon Lake. 
             
            Exposure Barriers 
            Due  to  the  presence  of  impacted  soils/groundwater  across  the  Property, 
            exposure  barriers  may  be  required  in  redevelopment  areas  to  prevent 
            unacceptable  exposure  to  contamination.    The  exposure  barriers  will  also 
            prevent exacerbation of the contamination. 



                                               6 
 
 
      2.1.3 Interest 
            Interest  capture  by  the  Owner  is  based  on  a  rate  not  to  exceed  5%  per  year 
            on unreimbursed MDEQ eligible activities. 
       
      2.1.4 Develop/Prepare Act 381 Brownfield Plan Amendment  
             To capture local and school tax increment revenue generated from the proposed 
             redevelopment  for  MBRA  and  Owner  reimbursement  of  MDEQ  eligible  activity 
             costs,  it  was  necessary  to  develop/prepare  this  Plan  pursuant  to  Act  381 
             guidelines.   
              
2.2    Michigan Strategic Fund (MSF) Eligible Activities 
       2.2.1 Demolition  
             The  City  of  Muskegon  is  considered  a  Qualified  Local  Governmental  Unit 
             (QLUG).    Therefore,  demolition  that  is  not  a  response  activity  is  an  eligible 
             activity  for  reimbursement.    Though  not  currently  identified,  there  may  be 
             demolition activities of the Property. 
 
       2.2.2 Infrastructure Improvements  
             Infrastructure  improvements  for  the  Property  are  eligible  for  reimbursement. 
             Due  to  the  large  scale  development  of  Windward  Pointe,  significant  new 
             infrastructure  improvements  will  be  required.  All  existing  obsoleted  industrial 
             infrastructure at the Property will be removed. 
              
       2.2.3 Site Preparation  
             Site Preparation improvements for the Property are eligible for reimbursement. 
             Due  to  the  extent  of  fill  material  at  the  Property,  and  the  topographic 
             variations across the Property, significant Site Preparation costs are and will be 
             incurred for the new development. 
              
       2.2.4 Interest  
             Interest capture by the Owner is based on a rate not to exceed 5% per year on 
             unreimbursed MSF non‐environmental eligible activities. 
 
2.3   Local Only Eligible Activities  
      Activities utilizing local taxes only are limited to the MBRA Administration Fees. 
       
2.4   Eligible Activities Costs and Schedules 
      The following subsections present the proposed schedule to complete the Project and 
      the associated costs. 



                                                 7 
 
 
     
           2.4.1 Schedule of MDEQ & MSF Eligible Activities 
                        Eligible  BEA  and  Due  Care  activities  started  in  2016  and  are  continuing. 
                        Additional  Response  Activities  and  Site  preparation  activities  will  be  ongoing 
                        with Site buildout and with applicable City and State approvals.  
        
                                                      MDEQ Eligible Activities 
     
                                                                                                           Estimated 
                                           MDEQ Eligible Activity 
                                                                                                              Cost 
                     BEA Activities                                                                         $300,000 
                     Due Care /Additional Activities                                                       $10,100,000
                                                  MDEQ Eligible Activities Sub‐Total                       $10,400,000
                     Contingency (15%)1                                                                    $1,560,000 
                     Interest2                                                                             $7,565,240 
                     Brownfield Plan Amendment and Act 381 Work Plan 
                                                                                                            $30,000 
                     Preparation 
                                         MDEQ ELIGIBILE ACTIVITIES TOTAL COST                              $19,555,240
           1 
                ‐ The contingency only pertains to the BEA and Due Care/Additional Response Activities. 
           2 
                – Interest captured at a rate not to exceed 5% per year. 
                                                                    
                                                        MSF Eligible Activities 
     
                                                                                                           Estimated 
                                                Eligible Activity 
                                                                                                              Cost 
                     Demolition                                                                             $750,000 
                     Infrastructure Improvements                                                           $5,000,000 
                     Site Preparation                                                                      $6,950,000 
                                                     MSF Eligible Activities Sub‐Total                     $12,700,000
                     Contingency (15%)1                                                                    $1,905,000 
                     Interest2                                                                             $10,703,523
                                             MSF ELIGIBLE ACTIVITIES TOTAL COST                            $25,308,523
           1 
                ‐ The contingency only pertains to the Demolition, Infrastructure Improvements and Site Preparation. 
           2 
                – Interest captured at a rate of 5% per year. 
     



                                                                   8 
 
 
        The  cost  of  the  MDEQ  eligible  activities  described  above  is  estimated  at 
        $19,555,240 and cost of the MSF non‐environmental eligible activities described 
        above  is  estimated  at  $25,308,523.   Reimbursement  of  previously  incurred 
        eligible  activity  costs  will  only  occur  if  a  Development  and  Reimbursement 
        Agreement is executed.    
     
        A  breakdown  of  the  eligible  activities  and  the  estimated  cost  of  each  eligible 
        activity intended to be paid for with tax increment revenues from the Property is 
        provided in Table 1.  Table 2 details the planned tax increment revenue capture 
        associated with the Plan that is consistent with Act 381. 
                                 




                                            9 
 
 
3.0  TAX INCREMENT REVENUE ANALYSIS 
3.1     Captured Taxable Value and Tax Increment Revenues Estimates 
        Based on the total projected Owner investment of approximately $200,000,000 (divided 
        over an approximately 10 year period), it is anticipated that approximately $70,000,000 
        of new taxable value (which also includes personal property taxes) will be available for 
        tax  increment  revenue  capture.    The  tax  increment  revenue  captured  will  be  used  to 
        reimburse  the  Owner  for  eligible  activity  costs  and  the  MBRA  for  administrative 
        expenses.  The estimated MDEQ and MSF Eligible Activity costs for purposes of this Plan, 
        and in accordance with Act 381 are $44,863,763.   
         
        Owner  reimbursement  under  this  Plan  will  be  in  accordance  with  a  Development  and 
        Reimbursement  Agreement  established  between  the  Owner  and  the  MBRA.    It  is 
        anticipated that tax increment revenue capture will commence in 2019 and end in 2040, 
        which  includes  an  additional  full  five  years  of  capture  for  the  MBRA  Local  Site 
        Remediation  Revolving  Fund  (LSRRF).    Table  2  summarizes  the  tax  increment  capture 
        plan.   
     
        The  actual  tax  increment  captured  will  be  based  on  taxable  value  set  through  the 
        Property  assessment  process  by  the  local  unit  of  government  and  equalized  by  the 
        County and millage rates set each year by the various taxing jurisdictions. 
 
3.2     Brownfield Plan Amendment Financing Method 
        The  costs  of  the  Plan  will  be  financed  by  the  Owner  or  future  owners/developers.  
        Additional grants, loans or bonding may be considered to address eligible activities.    
 
3.3     Note or Bonded Indebtedness  
        Additional grants, loans or bonding may be considered to address eligible activities.   
 
3.4     Tax Increment Revenues Capture Period  
        Act  381  provides  that  a  Plan  Amendment  shall  not  exceed  a  maximum  of  35  years 
        following  the  date  of  the  resolution  approving  the  Plan  Amendment,  nor  shall  the 
        duration of the tax capture exceed the lesser of the period authorized under subsection 
        (4)  and  (5)  of  Section  13  of  Act  381  or  30  years  from  the  beginning  date  of  capture.  
        Furthermore, the beginning date of the capture of tax increment revenues shall be no 
        later than five years after the date of the resolution approving the Plan Amendment. 
     
        Given the estimated costs of eligible activities and projected private investment for this 
        project, it is estimated that tax capture will occur for a period of approximately 19 years 
        with the potential to extend the tax capture period an additional 5 years for the MBRA 


                                                     10 
 
 
          LSRRF. As permitted under Act 381, the base year for the Plan Amendment will be 2017. 
          The capture will extend until all eligible activities are paid in full or 30 years, whichever 
          is earlier. The MBRA will continue tax revenue capture for the LSRRF a full 5 years after 
          eligible activity payoff. 
 
3.5       Impact of Tax Increment Financing  
          It  is  the  intent  of  the  MBRA  to  collect  only  so  much  tax  increment  revenues  as  are 
          required to: (i) reimburse the approved costs for eligible activities incurred by the MBRA 
          and  the  Owner  pursuant  to  this  Plan  and  any  Development  and  Reimbursement 
          Agreement, and (ii) pay into the State Brownfield Redevelopment Fund as described in 
          Act  381.    This  Plan  may  be  amended  in  accordance  with  Act  381,  as  necessary.  
          Estimated  eligible  activity  costs  are  provided  in  Table  1.    Estimates  of  the  captured 
          taxable values and tax increment revenues are provided in Table 2. 
 
3.6       LSRRF Proposed Use  
         The  MBRA  will  capture  a  full  five  years  of  tax  increment  revenue  generated  from  this 
         Project for deposit in the MBRA’s LSRRF.  The LSRRF capture by the MBRA will be used 
         to fund eligible activities at eligible properties throughout the County.  
           
          

                                   




                                                     11 
 
 
4.0  RELOCATION 
4.1    Current Residents and Displacement 
       There are no current residents to be displaced.    
        
4.2    Displaced Persons Relocation Plan  
       Not applicable. 
                                                    
4.3    Relocation Cost Provisions  
       Not applicable. 
 
4.4    Compliance with Michigan’s Relocation Assistance Law  
       Not applicable. 




                                               12 
 
  PROPERTY
  LOCATION
USGS TOPO 30x60 QUAD                     0              5,280'          10,560'
MUSKEGON MICH 1982


                                                  SCALE: 1" = 1 MILE




                                             CITY OF MUSKEGON,
                                             MUSKEGON COUNTY,
                                                  MICHIGAN
  N
                       PROPERTY LOCATION MAP
                                        2400 LAKESHORE DRIVE
                                         MUSKEGON, MI 49441
                       JOB 15-3147-01        JANUARY 2017         FIGURE 1
                                               MUSKEGON LAKE




                                                                                      PROPERTY
                                                                                     BOUNDARY,
                                                                                       TYPICAL


                                    LAKESHORE DRIVE

AERIAL IMAGERY GOOGLEEARTH DATE OF PHOTOGRAPHY - 4/15/2016
BOUNDARY ADAPTED FROM MOORE AND BRUGGINK PROJECT # 946155.3 - JUNE 2010




                                                 0           300'         600'                   ELIGIBLE PROPERTY MAP
                                                                                 N                             2400 LAKESHORE DRIVE
                                                       SCALE: 1" = 300'                                        MUSKEGON, MICHIGAN
                                                                                                 JOB 17-3147      JANUARY 2017        FIGURE 2
                                               MUSKEGON LAKE




                                                                                    16




                                                                            19                   8
                                                                           12 14
                                                                                         6
                                                                                                 3 1
                  LIME PILE                                           15
                                                                              5                         PROPERTY
                                                                             7 11
                                                                              18                       BOUNDARY,
                                                                             17 10
                                                                                                         TYPICAL

                                                                             4 9 13


                                    LAKESHORE DRIVE

AERIAL IMAGERY GOOGLEEARTH DATE OF PHOTOGRAPHY - 4/15/2016
BOUNDARY ADAPTED FROM MOORE AND BRUGGINK PROJECT # 946155.3 - JUNE 2010

       AREAS OF KNOWN CONTAMINATION

                                                 0           300'            600'
                                                                                                                   KNOWN CONTAMINATION MAP
                                                                                             N                                   2400 LAKESHORE DRIVE
                                                       SCALE: 1" = 300'                                                          MUSKEGON, MICHIGAN
                                                                                                                   JOB 17-3147      JANUARY 2017        FIGURE 4
Aerial Looking East
Aerial Looking West

       Muskegon
      Country Club
                                        TABLES 
Table 1‐     MDEQ & MSF Eligible Activities 
Table 2‐     Tax Increment Financing Estimates and Schedule 
                                                                
                                                                                                                               Table 1
                                                                                                               TIF Eligible Reimbursement Activities
                                                                                                      2400 Lakeshore Drive, Muskegon, Muskegon County, MI 
                                                                                                                Windward Pointe Redevelopment


                                                                                                                                     Total Reimbursable School/Local Tax Capture
                                                                                                      Developer Incurred Costs                                                                Total Local Only Tax Capture        Total TIF Capture
                                                                                                                                  Environmental Activity     Non‐Environmental Activity 
                                                                                                                                          Costs                        Costs


                                                                                                                                   MDEQ Act 381 Eligible 
 Eligible Activity                                                                                                                     Activities            MSF Act 381 Eligible Activities Local Act 381 Eligible  Activities   Total TIF Capture
 Preparation of Brownfield Plan Amendment and Act 381 Workplan
 Preparation of Brownfield Plan Amendment and Act 381 Workplan                                                $30,000                    $30,000                                                                                      $30,000
 Baseline Environmental Assessment Activities
 Phase I ESA, Phase II ESA, BEA                                                                               $300,000                   $300,000                                                                                     $300,000
 Due Care/Additional Response Activities
 Due Care Investigation (additional costs related to contamination)                                          $1,000,000                 $1,000,000                                                                                   $1,000,000
 Sheeting and Shoring                                                                                        $3,500,000                 $3,500,000                                                                                   $3,500,000
 Contaminated Soil Management (transport, disposal and backfill)                                             $1,500,000                 $1,500,000                                                                                   $1,500,000
 Dewatering (treatment and discharge)                                                                        $1,750,000                 $1,750,000                                                                                   $1,750,000
 Stormwater Management Practices (additional costs related to contamination)                                 $1,250,000                 $1,250,000                                                                                   $1,250,000
 Exposure Barriers                                                                                           $1,100,000                 $1,100,000                                                                                   $1,100,000
 Non‐Environmental Activities
 Demolition                                                                                                    $750,000                                                 $750,000                                                      $750,000
 Infrastructure Improvements                                                                                 $5,000,000                                                $5,000,000                                                    $5,000,000
 Site Preparation                                                                                            $6,950,000                                                $6,950,000                                                    $6,950,000
                                                                                  Project Sub‐Total          $23,130,000               $10,430,000                    $12,700,000                                                   $23,130,000
 Interest (rate not to exceed 5% per year for MDEQ eligible activities)                                       $7,565,240                $7,565,240                                                                                   $7,565,240
 Interest (rate not to exceed 5% per year for MSFeligible activities)                                        $10,703,523                                              $10,703,523                                                   $10,703,523
 Contingency 15% (MDEQ Eligible Activities)                                                                   $1,560,000                $1,560,000                                                                                   $1,560,000
 Contingency 15% (MSF Eligible Activities)                                                                    $1,905,000                                              $1,905,000                                                     $1,905,000
 MBRA Administrative Fees                                                                                                                                                                                $240,000                     $240,000
                                                                                        Total Costs          $44,863,763               $19,555,240                    $25,308,523                        $240,000                   $45,103,763
                                   Department of Treasury‐ State Brownfield Redevelopment Fund                                                                                                                                       $3,934,734
                                                                                      MBRA LSRRF                                                                                                                                    $21,091,972
                                                                          Total ACT 381 TIF Capture          $44,863,763               $19,555,240                    $25,308,523                        $240,000                   $70,130,469
 MDEQ: Michigan Department of Environmental Quality
 MSF: Michigan Strategic Fund
 MBRA: City of Muskegon Brownfield Redevelopment Authority
 LSRRF: Local Site Remediation Revolving Loan Fund
 TIF: Tax Increment Financing




Lakeshore Environmental, Inc.                                                                                                                                                                                                                    Page 1 of 1
                                                                                                                                                                                                                             Table 2
                                                                                                                                                                                                     Tax Increment Financing (TIF) Estimates and Schedule
                                                                                                                                                                                              2400 Lakeshore Drive, City of Muskegon, Muskegon County, Michigan 
                                                                                                                                                                                                              Windward Pointe Redevelopment


                                                                                                  2016         2017         2018         2019          2020          2021          2022           2023          2024          2025          2026          2027          2028          2029          2030          2031          2032          2033          2034          2035          2036          2037          2038          2039          2040                                   Description of MDEQ Act 381 Environmental Eligible Activities ‐ State and Local Taxes
Land and Real Property Taxable Value                                                            $1,584,900   $1,584,900   $1,584,900   $1,584,900   $1,584,900    $1,584,900    $1,584,900      $1,584,900   $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900    $1,584,900                     1. Due Care/Additional Response Activities                                                       $10,100,000
Commercial Tax Increment Value (increase of 1.5% per year)                                                      $0           $0        $7,000,000   $14,000,000   $21,000,000   $28,000,000    $35,000,000   $42,000,000   $49,000,000   $56,000,000   $63,000,000   $70,000,000   $71,050,000   $72,115,750   $73,197,486   $74,295,449   $75,409,880   $76,541,028   $77,689,144   $78,854,481   $80,037,298   $81,237,858   $82,456,426   $83,693,272                    2. Preparation of  Brownfield Plan Amendment & Act 381 Work Plan                                    $30,000
Estimated New Taxable Value (increase of 1.5% per year)                                                      $1,584,900   $1,584,900   $8,584,900   $15,584,900   $22,584,900   $29,584,900    $36,584,900   $43,584,900   $50,584,900   $57,584,900   $64,584,900   $71,584,900   $72,634,900   $73,700,650   $74,782,386   $75,880,349   $76,994,780   $78,125,928   $79,274,044   $80,439,381   $81,622,198   $82,822,758   $84,041,326   $85,278,172                    3. Baseline Environmental Assessment Activities                                                    $300,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Total MDEQ ACT 381  Environmental Eligible Activities                                            $10,430,000
Local Taxes‐ Millages (mills)                                                                                                                                                                                                                                                                                                                                                                                                                                       Total   Contingency @ 15%  1                                                                              $1,560,000
County Operating                                                        5.6984                                  $0           $0         $39,889      $79,778       $119,666      $159,555       $199,444      $239,333      $279,222      $319,110      $358,999      $398,888      $404,871      $410,944      $417,109      $423,365      $429,716      $436,161      $442,704      $449,344      $456,085      $462,926      $469,870      $476,918         $7,473,896   Interest (5%) 2                                                                                   $7,565,240
County Museum                                                           0.3221                                  $0           $0         $2,255        $4,509        $6,764        $9,019         $11,274      $13,528       $15,783       $18,038       $20,292       $22,547       $22,885       $23,228       $23,577       $23,931       $24,290       $24,654       $25,024       $25,399       $25,780       $26,167       $26,559       $26,958           $422,459                                                            Total                                    $19,555,240
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            1
County Veterans                                                         0.0752                                  $0           $0          $526         $1,053        $1,579        $2,106         $2,632        $3,158        $3,685        $4,211        $4,738        $5,264        $5,343        $5,423        $5,504        $5,587        $5,671        $5,756        $5,842        $5,930        $6,019        $6,109        $6,201        $6,294            $98,631      Contingency relates only to Additional Response Activities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            2
County Quality of Life                                                  0.2600                                  $0           $0         $1,820        $3,640        $5,460        $7,280         $9,100       $10,920       $12,740       $14,560       $16,380       $18,200       $18,473       $18,750       $19,031       $19,317       $19,607       $19,901       $20,199       $20,502       $20,810       $21,122       $21,439       $21,760           $341,010      Interest captured at a rate not to exceed 5% per year
Community College                                                       2.2037                                  $0           $0         $15,426      $30,852       $46,278       $61,704         $77,130      $92,555       $107,981      $123,407      $138,833      $154,259      $156,573      $158,921      $161,305      $163,725      $166,181      $168,673      $171,204      $173,772      $176,378      $179,024      $181,709      $184,435         $2,890,325
Central Dispatch                                                        0.3000                                  $0           $0         $2,100        $4,200        $6,300        $8,400         $10,500      $12,600       $14,700       $16,800       $18,900       $21,000       $21,315       $21,635       $21,959       $22,289       $22,623       $22,962       $23,307       $23,656       $24,011       $24,371       $24,737       $25,108           $393,473
MAISD                                                                   4.7580                                  $0           $0         $33,306      $66,612       $99,918       $133,224       $166,530      $199,836      $233,142      $266,448      $299,754      $333,060      $338,056      $343,127      $348,274      $353,498      $358,800      $364,182      $369,645      $375,190      $380,817      $386,530      $392,328      $398,213         $6,240,488            Description of MSF Act 381 Non‐Environmental Eligible Activities ‐ State and Local Taxes
City Operating                                                         10.0875                                  $0           $0         $70,613      $141,225      $211,838      $282,450       $353,063      $423,675      $494,288      $564,900      $635,513      $706,125      $716,717      $727,468      $738,380      $749,455      $760,697      $772,108      $783,689      $795,445      $807,376      $819,487      $831,779      $844,256        $13,230,544   1. Demolition                                                                                      $750,000
City Sanitation                                                         3.0000                                  $0           $0         $21,000      $42,000       $63,000       $84,000        $105,000      $126,000      $147,000      $168,000      $189,000      $210,000      $213,150      $216,347      $219,592      $222,886      $226,230      $229,623      $233,067      $236,563      $240,112      $243,714      $247,369      $251,080         $3,934,734   2. Infrastructure Improvements                                                                    $5,000,000
Hackley Library                                                         2.4000                                  $0           $0         $16,800      $33,600       $50,400       $67,200         $84,000      $100,800      $117,600      $134,400      $151,200      $168,000      $170,520      $173,078      $175,674      $178,309      $180,984      $183,698      $186,454      $189,251      $192,090      $194,971      $197,895      $200,864         $3,147,787   3. Site Preparation                                                                               $6,950,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Total MSF ACT 381  Eligible Activities                                                           $12,700,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       1
Sub Total‐ Local                                                      29.1049                                   $0           $0        $203,734      $407,469      $611,203      $814,937       $1,018,672   $1,222,406    $1,426,140    $1,629,874    $1,833,609    $2,037,343    $2,067,903    $2,098,922    $2,130,406    $2,162,362    $2,194,797    $2,227,719    $2,261,135    $2,295,052    $2,329,478    $2,364,420    $2,399,886    $2,435,884       $38,173,349   Contingency @ 15%                                                                                 $1,905,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Interest (5%)                                                                                    $10,703,523
School Taxes‐ Millages (mills)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Total                                    $25,308,523
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            1 
School Operating                                                       18.0000                                  $0           $0        $126,000      $252,000      $378,000      $504,000       $630,000      $756,000      $882,000     $1,008,000    $1,134,000    $1,260,000    $1,278,900    $1,298,084    $1,317,555    $1,337,318    $1,357,378    $1,377,739    $1,398,405    $1,419,381    $1,440,671    $1,462,281    $1,484,216    $1,506,479       $23,608,405        Contingency relates only to Demolition, Infrastructure Improvements and Site Preparation 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            2
State Education Tax*                                                    6.0000                                  $0           $0         $42,000      $84,000       $126,000      $168,000       $210,000      $252,000      $294,000      $336,000      $378,000      $420,000      $426,300      $432,695      $439,185      $445,773      $452,459      $459,246      $466,135      $473,127      $480,224      $487,427      $494,739      $502,160         $7,869,468     Interest captured at a rate not to exceed 5% per year


Sub Total‐ School                                                     24.0000                                   $0           $0        $168,000      $336,000      $504,000      $672,000       $840,000     $1,008,000    $1,176,000    $1,344,000    $1,512,000    $1,680,000    $1,705,200    $1,730,778    $1,756,740    $1,783,091    $1,809,837    $1,836,985    $1,864,539    $1,892,508    $1,920,895    $1,949,709    $1,978,954    $2,008,639       $31,477,874
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Description of Act 381 Eligible Activities ‐ Local Taxes Only (MBRA)
Millages not collected**                                                7.9400                                  $0           $0         $55,580      $111,160      $166,740      $222,320       $277,900      $333,480      $389,060      $444,640      $500,220      $555,800      $564,137      $572,599      $581,188      $589,906      $598,754      $607,736      $616,852      $626,105      $635,496      $645,029      $654,704      $664,525        $10,413,930   Total TIF Mgmt Admin Fee (captured by MBRA)                                                        $240,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Total ACT 381 Eligible Activities to be Local Funded by TIF                                        $240,000
Combined Total                                                        53.1049                                   $0           $0        $371,734      $743,469     $1,115,203    $1,486,937      $1,858,672   $2,230,406    $2,602,140    $2,973,874    $3,345,609    $3,717,343    $3,773,103    $3,829,700    $3,887,145    $3,945,452    $4,004,634    $4,064,704    $4,125,674    $4,187,559    $4,250,373    $4,314,128    $4,378,840    $4,444,523       $69,651,222                                                           Total                                      $240,000


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 State Brownfield Redevelopment Fund
Reimbursement/Payback Schedule                                                                                                                                                                                                                                                                                                                                                                                                                                              Total TIF Capture for Dept. of Treasury ‐ BRF (3 mils of SET)                                     $3,934,734
TIF Management Administrative Fee (captured by MBRA)
Local Taxes                                                                          $20,000                  10,000       10,000       10,000        10,000        10,000        10,000         10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000        10,000            240,000                                                       MBRA LSRRF
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Total TIF Capture                                                                                $21,091,972
MDEQ/Act 381 Environmental  Eligible Activities 
Local Taxes                                                                                                      0            0         96,867       198,734       300,601       402,469         504,336      606,203       708,070       809,937       911,804       1,013,672     1,028,952     1,044,461     1,060,203     1,076,181     1,092,399     447,773                                                                                              11,302,660                                                                       TOTAL TIF CAPTURE            $70,130,469
State Taxes                                                                                                      0            0         73,500       147,000       220,500       294,000         367,500      441,000       514,500       588,000       661,500       735,000       746,025       757,215       768,574       780,102       791,804       366,359                                                                                               8,252,579
Un‐reimbursed Environmental Activities                                            $11,990,000                11,990,000   12,541,540   12,948,084   13,197,961    13,283,966    13,198,560      12,933,858   12,481,612    11,833,197    10,979,586     9,911,343     8,618,593     7,240,072     5,771,439     4,208,149     2,545,441     778,329          0

Interest (5% of unreimbursed activities)                                           $7,565,240                 551,540      576,911      595,612      607,106       611,062       607,134         594,957      574,154       544,327       505,061       455,922       396,455       333,043       265,486       193,575       117,090        35,803                                                                                                                                                                            TABLE 2
                                              Total                               $19,555,240                                                                                                                                                                                                                                                                                                                                                                  19,555,240


MSF Act 381 Non‐Environmental  Eligible Activities 
Local Taxes                                                                                                      0            0         96,867       198,734       300,601       402,469         504,336      606,203       708,070       809,937       911,804       1,013,672     1,028,952     1,044,461     1,060,203     1,076,181     1,092,399     1,769,946     1,703,471                                                                              14,328,305
State Taxes                                                                                                      0            0         73,500       147,000       220,500       294,000         367,500      441,000       514,500       588,000       661,500       735,000       746,025       757,215       768,574       780,102       791,804       1,700,248     1,393,749                                                                              10,980,217
Un‐reimbursed Environmental Activities                                            $14,605,000                14,605,000   15,276,830   15,809,197   16,190,686    16,414,356    16,472,948      16,358,868   16,064,173    15,580,554    14,899,323    14,011,387    12,907,240    11,725,996    10,463,716     9,116,270     7,679,336     6,148,383     2,961,013        0
Interest (5%)                                                                     $10,703,523                 671,830      702,734      727,223      744,772       755,060       757,756         752,508      738,952       716,706       685,369       644,524       593,733       539,396       481,331       419,348       353,249       282,826       136,207
                                              Total                               $25,308,523                                                                                                                                                                                                                                                                                                                                                                  25,308,523


Dept. of Treasury ‐ State Brownfield Redvelopment Fund (3 mills of SET capture)
School Education Tax                                                               $3,934,734                    0            0         21,000        42,000        63,000        84,000         105,000      126,000       147,000       168,000       189,000       210,000       213,150       216,347       219,592       222,886       226,230       229,623       233,067       236,563       240,112       243,714       247,369       251,080           3,934,734


MBRA Local Site Remediation Revolving Loan Fund (LSRRF)
Local Taxes                                                                       $12,322,383                                                                                                                                                                                                                                                                           $547,664     $2,285,052    $2,319,478    $2,354,420    $2,389,886    $2,425,884        12,322,383
State Taxes                                                                        $8,769,589                                                                                                                                                                                                                                                                           $237,723     $1,655,944    $1,680,783    $1,705,995    $1,731,585    $1,757,559         8,769,589
                                              Total                               $21,091,972                                                                                                                                                                                                                                                                                                                                                                  21,091,972



                                                                                                                                                                                                  Total TIF Capture                                                                                                                                                                                                                                        $70,130,469
Notes:
1) TIF estimates assume a total taxable value increase of $70,000,000 based on $200,000,000 private investment.  The total investment of $200,000,000 is estimated to occur between 2019 and 2029.
2) Taxing jurisdictions will continue to receive taxes during the duration of this Plan, base on the initial taxable value prior to the redevelopment.  New tax increment revenues generated will be used for this TIF Plan.  Once the TIF Plan is complete, taxing jurisdictions will receive full taxes. 
3) Personal property taxes will not be captured as part of this Plan.
Key:
*‐ While the Muskegon County will capture the full 6 mills under the School Education Tax, 3 mills will need to be dispersed to the MIchigan Dept. of Treasury for the State Brownfield Redevelopment Fund per the 2012 Act 381 Amendments.
**‐Millages not collected as part of the Brownfield Plan per Act 381 include: Muskegon Public Schools Debt (1995 & 2009) and Community College Debt
MDEQ: Michigan Department of Environmental Quaility
MBRA: City of Muskegon Brownfield Redevelopment Authority
MSF: Michigan Strategic Fund
                                   ATTACHMENTS 
                                              
Attachment A‐ Resolutions Approving Brownfield Amendment  
Attachment B‐ Development and Reimbursement Agreement 
                                                              
                   Commission Meeting Date: February 28, 2017




Date:         February 22, 2017
To:           Honorable Mayor and City Commissioners
From:         Finance
RE:           Defined Benefit Plan Adoption Agreements – Div 01 (Non-
              Union) and Div 21 (Police Patrol)




SUMMARY OF REQUEST: To approve the attached Defined Benefit Plan
Adoption Agreements to bridge the pension benefit for current non-union employees
from a 2.25% multiplier to a 2.0% multiplier with frozen final average compensation
and to bridge the pension benefit for current police patrol unit employees from a 3.0%
multiplier to a 2.67% multiplier with frozen final average compensation.


FINANCIAL IMPACT: It is estimated that the City’s contribution rate for non-
union would decrease by $196,284 while the City’s contribution rate for police patrol
would decrease by $328,399 for the next fiscal year.


BUDGET ACTION REQUIRED: Future budgets will be reflective of these
changes.



STAFF RECOMMENDATION: To approve the attached Defined Benefit Plan
Adoption Agreements and authorize the Mayor to sign the agreements.
 Defined Benefit Plan Adoption Agreement
                                                                                     #   $      %      &   '      (   )   &   0   0       (   1   (          2   3   4    5   1      (   (   6   )   7                  (       (   0                  '       (          




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 The Employer, a participating municipality or participating court within the state of Michigan, hereby
 agrees to adopt and administer the MERS Defined Benefit Plan provided by the Municipal Employees’
 Retirement System of Michigan, as authorized by 1996 PA 220, in accordance with the MERS Plan
 Document, as both may be amended, subject to the terms and conditions herein.

 I. Employer Name _________________________________________________ Municipality #: _____________
 If new to MERS, please provide your municipality’s fiscal year: _____________ through _____________.
                                                                                                                                                                                                                                                                                                       Month                                                                                   Month
 II. Effective Date
                 Check one:
                         A.                                  If this is the initial Adoption Agreement for this group, the effective date shall be the first day
                                                             of ______________, 20___.


                                                                                  This municipality or division is new to MERS, so vesting credit prior to the initial MERS
                                                                                  effective date by each eligible participant shall be credited as follows (choose one):
                                                                                                              All prior service from date of hire
                                                                                                              Prior service proportional to assets transferred; all service used for vesting
                                                                                                              Prior service and vesting service proportional to assets transferred
                                                                                                              No prior service but grant vesting credit
                                                                                                              No prior service or vesting credit

                                                                                  Link this new division to division number _______ for purposes of determining
                                                                                  contributions (Unless otherwise specified, the standard transfer/rehire rules apply)


                         B.                  @
                                                If this is an amendment of an existing Adoption Agreement (Defined Benefit division number
                                                     A




                                                                                                                                                                                                                                                           C       D       E           F       G   H   F   I
                                                                                                                                                                                                                                                                                                                                                           A   B




                                             _______), the effective date shall be the first day of ________________, 20_____. Please note: You
                                                               fective
                                             only need to mark changes to your plan throughout the remainder of this Agreement.

                         C.                     If this is a temporary benefit that lasts 2-6 months, the effective dates of this temporary
                                             benefit are from ___/01/___ through ___/___/___ for Defined Benefit division number _________.
                                                                                                                                                                                      Last day of month
                                             Please note: You only need to mark changes to your plan throughout the remainder of this
                                             Agreement.
                         D.                     If this is to separate employees from an existing Defined Benefit division (existing division
                                             number(s) ________________________________________________________) into a new division,
                                             the effective date shall be the first day of ___________________, 20____.
                         E.                     If this is to merge division(s) _____________________ into division(s) ____________________,
                                             the effective date shall be the first of ___________________, 20____.

Form DB-002 (version 2015-05-20)                                                                                                                                                                                                                                                                                                                                                                       Page 1 of 6
 Defined Benefit Plan Adoption Agreement
 III. Eligible Employees
     Only those Employees eligible for MERS membership may participate in the MERS Defined Benefit
     Plan. A copy of ALL employee enrollment forms must be submitted to MERS. The following groups of
     employees are eligible to participate:

     ___________________________________________________________________________________________
                                      (Name of Defined Benefit division – e.g. All Full Time Employees, or General after 7/01/13)

             Only retirees will be in this division.
     These employees are (check one or both):
             In a collective bargaining unit (attach cover page, retirement section, signature page)
             Subject to the same personnel policy

     To receive one month of service credit (check one):
             An employee shall work 10 _______ hour days.
             An employee shall work _______ hours in a month.
         All employees as classified under eligible employees, whether full or part time, who meet this
         criteria must be reported to MERS. If you change your current day of work definition to be more
         restrictive, the new definition only applies to employees hired after the effective date.
     To further define eligibility, check all that apply:
             Probationary Periods are allowed in one-month increments, no longer than 12 months. During
             this introductory period, the Employer will not report or provide service time for this period,
             including retroactively. Service will begin after the probationary period has been satisfied.
              The probationary period will be _______ month(s).
             Temporary employees in a position normally requiring less than a total of 12 whole months
             of work in the position may be excluded from membership. These employees must be notified
             in writing by the participating municipality that they are excluded from membership within 10
             business days of date of hire or execution of this Agreement.
              The temporary exclusion period will be _______ month(s).


 IV. Provisions
                                       P   Q   R   S   T   U   V   W                  T   X




     Valuation Date: ________________________ , 20 ____

          1. Review the valuation results

              It is recommended that your MERS representative presents and explains the valuation results to
              your municipality before adopting. Please choose one:
                                     e

                  Our MERS representative presented and explained the valuation results to the
                  _______________________ on _________________.
                          (Board, Finance Cmte, etc.)                            (mm/dd/yyyy)
                                                                                                 Y
                                                                                                     V   Q   `   W   Q   a   b   c   d   e   f   a




                  As an authorized representative of this municipality, I _______________________________
                  g   c   h   f   e
                                                                                                                                                     (Name)
                  ________________________________ waive the right for a presentation of the results.
                                                                       (Title)

Form DB-002 (version 2015-05-20)                                                                                                                              Page 2 of 6
 Defined Benefit Plan Adoption Agreement
          2. This Adoption Agreement will be implemented in conjunction with a current actuarial valuation
             certified by a MERS actuary that sets contribution rates.

          3. Annually, the MERS actuary will conduct an actuarial valuation to determine the employers’
             contribution rates. Employers are responsible for payment of said contributions at the rate, in
             the form and at the time that MERS determines.
                                                                     i
                                                                         S   p




          4. Benefit Multiplier (1%-2.5%, increments of 0.05%) _________ % (max 80% for multipliers
             over 2.25%)

                   Check here if multiplier will be effective for existing active members’ future service only
                    (Bridged Benefit as of effective date on page 1)
                        If checked, select one below:
                            Termination Final Average Compensation (calculated over the members entire
                            wage history)
                            Frozen Final Average Compensation (FAC is calculated twice, once for the
                            timeframe that matches the original multiplier, and once for the new multiplier)


          5. Final Average Compensation (Min 3 yr, increments of 1 yr) ________ years

          6. Vesting (5 -10 yrs, increments of 1 yr) ________ years

          7. Required employee contribution (Max 10%, increments of 0.01%) __________ %

          8. Compensation, for retirement purposes, is defined as base wages and all of the following.
             Check applicable boxes to exclude these types from your MERS reported wages:

                    Longevity pay
                    Overtime pay
                    Shift differentials
                    Pay for periods of absence from work by reason of vacation, holiday, and sickness
                    Workers’ compensation weekly benefits (if reported and are higher than regular earnings)
                    A member’s pre-tax contributions to a plan established under Section 125 of the IRC
                    Transcript fees paid to a court reporter
                    A taxable car allowance
                    Short term or long term disability payments
                    Payments for achievement of established annual (or similar period) performance goals
                    Payment for attainment of educational degrees from accredited colleges, universities, or for
                    acquisition of job-related certifications
                    Lump sum payments attributable to the member’s personal service rendered during the
                    FAC period
                    Other: __________________________________________________________________________
                    Other 2: ________________________________________________________________________




Form DB-002 (version 2015-05-20)                                                                          Page 3 of 6
 Defined Benefit Plan Adoption Agreement
         9. Early Normal Retirement with unreduced benefits

                    Age 50 with 25 years of service         Age 50 with 30 years of service
                    Age 55 with 15 years of service         Age 55 with 20 years of service
                    Age 55 with 25 years of service         Age 55 with 30 years of service
                    Any age with (20-30 yrs, in 1 yr increments) _____ years of service
                     ________________________________________________________________________________

         10. Other

                    Surviving Spouse will receive ______% of Straight Life benefit without a reduction to the
                    participant’s benefit
                    Duty death or disability enhancement (add up to additional 10 years of service credit not to
                    exceed 30 years of service)
                    Deferred Retirement Option Program (DROP)
                    Annuity Withdrawal Program (AWP)
                     Calculation of the actuarial equivalent of the lump sum distribution made under AWP will
                     be done using:
                         Interest rate for employee contributions as determined by the Retirement Board, or
                         MERS’ assumed rate of return as of the date of the distribution.

         11. Cost-of-Living Adjustment

                        All current retirees as of effective date        Future retirees who retire after
                        Retirees who retire between                      effective date
                        ____/01/____ and ____/01/____
                              (one time increase only)

                 Increase of _____% or $_____ per month             Increase of _____% or $_____ per month

                 Select one:                                             Annual automatic increase
                      Annual automatic increase
                      One-time increase

                 Select one:                                        Select one:
                      Compounding                                        Compounding
                      Non-compounding                                    Non-compounding

                 Employees must be retired _____ months             Employees must be retired _____ months
                 (6-12 months, increments of 1 month)               (6-12 months, increments of 1 month)


 V. Appointing MERS as the Plan Administrator
 The Employer hereby agrees to the provisions of this MERS Defined Benefit Plan Adoption Agreement and
 appoints MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
 also agrees that in the event any conflict between MERS Plan Document and the MERS Defined Benefit
 Plan, the provisions of the Plan Document control.


Form DB-002 (version 2015-05-20)                                                                            Page 4 of 6
 Defined Benefit Plan Adoption Agreement
 VI. Modification Of The Terms Of The Adoption Agreement
 If the Employer desires to amend any of its elections contained in this Adoption Agreement, including
 attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS, must
 adopt a new Adoption Agreement. The amendment of the new Agreement is not effective until approved
 by MERS.

 VII. Enforcement
 1.       The Employer acknowledges that the Michigan Constitution of 1963, Article 9, Section 24, provides
          that accrued financial benefits arising under a public Employer’s retirement plan are a contractual
          obligation of the Employer that may not be diminished or impaired, and prohibits the use of the
          Employer’s required current service funding to finance unfunded accrued liabilities.
 2.       The Employer agrees that, pursuant to the Michigan Constitution, its obligations to pay required
          contributions are contractual obligations to its employees and to MERS and may be enforced in a
          court of competent jurisdiction;
 3.       In accordance with the Constitution and this Agreement, if at any time the balance standing to the
          Employer’s credit in the reserve for employer contributions and benefit payments is insufficient
          to pay all service benefits due and payable to the entity’s retirees and beneficiaries, the Employer
          agrees and covenants to promptly remit to MERS the amount of such deficiency as determined by
          the Retirement Board within thirty (30) days notice of such deficiency.
 4.       The Employer acknowledges that wage and service reports are due monthly, and the employee
          contributions (if any) and Employer contributions are due and payable monthly, and must be
          submitted in accordance with the MERS Enforcement Procedure for Prompt Reporting and
          Payment, the terms of which are incorporated herein by reference.
 5.       Should the Employer fail to make its required contribution(s) when due, the retirement benefits due
          and payable by MERS on behalf of the entity to its retirees and beneficiaries may be suspended
          until the delinquent payment is received by MERS. MERS may implement any applicable interest
          charges and penalties pursuant to the MERS Enforcement Procedure for Prompt Reporting and
          Payment and Plan Document Section 79, and take any appropriate legal action, including but
          not limited to filing a lawsuit and reporting the entity to the Treasurer of the State of Michigan in
          accordance with MCL 141.1544(d), Section 44 of PA 436 of 2012, as may be amended.
 6.       The Employer acknowledges that changes to the Employer’s MERS Defined Benefit Plan must be
          made in accordance with the MERS Plan Document and applicable law, and agrees that MERS
          will not administer any such changes unless the MERS Plan Document and applicable law permit
          same, and MERS is capable of administering same.




Form DB-002 (version 2015-05-20)                                                                     Page 5 of 6
   Defined Benefit Plan Adoption Agreement
VIII. Execution
    Authorized Designee of Governing Body of Municipality or Chief Judge of Court
      The foregoing Adoption Agreement is hereby approved by ____________________________________ on
            i   r
                        V   W                   P   Q   R   e   q   c   e   h   T   X




                                                                                        (Name of Approving Employer)
      the _____ day of _______________________, 20_____.


      Authorized signature: _________________________________________________________________________
                    g           c   h   f   e




             _
      Title: _______________________________________________________________________________________
                         _
      Witness signature: ___________________________________________________________________________


   Received and Approved by the Municipal Employees’ Retirement System of Michigan
      Dated: __________________________ , 20 _____ Signature: _______________________________________
                                                                                        (Authorized MERS Signatory)




  Form DB-002 (version 2015-05-20)                                                                                     Page 6 of 6
 Defined Benefit Plan Adoption Agreement
                                                                                     #   $      %      &   '      (   )   &   0   0       (   1   (          2   3   4    5   1      (   (   6   )   7                  (       (   0                  '       (          




                             ¨   ©   ¨                        !   "          ¥   ¨                                                           ¡               ¡                                                       8   9           ¡                       ¡                                                       ¡   ¢   £   ¤   ¥   ¦   §   ¢           ¨   ©      ¡   ©   ¦   ¢




 The Employer, a participating municipality or participating court within the state of Michigan, hereby
 agrees to adopt and administer the MERS Defined Benefit Plan provided by the Municipal Employees’
 Retirement System of Michigan, as authorized by 1996 PA 220, in accordance with the MERS Plan
 Document, as both may be amended, subject to the terms and conditions herein.

 I. Employer Name _________________________________________________ Municipality #: _____________
 If new to MERS, please provide your municipality’s fiscal year: _____________ through _____________.
                                                                                                                                                                                                                                                                                                       Month                                                                                   Month
 II. Effective Date
                 Check one:
                         A.                                  If this is the initial Adoption Agreement for this group, the effective date shall be the first day
                                                             of ______________, 20___.


                                                                                  This municipality or division is new to MERS, so vesting credit prior to the initial MERS
                                                                                  effective date by each eligible participant shall be credited as follows (choose one):
                                                                                                              All prior service from date of hire
                                                                                                              Prior service proportional to assets transferred; all service used for vesting
                                                                                                              Prior service and vesting service proportional to assets transferred
                                                                                                              No prior service but grant vesting credit
                                                                                                              No prior service or vesting credit

                                                                                  Link this new division to division number _______ for purposes of determining
                                                                                  contributions (Unless otherwise specified, the standard transfer/rehire rules apply)


                         B.                  @
                                                If this is an amendment of an existing Adoption Agreement (Defined Benefit division number
                                                     A




                                                                                                                                                                                                                                                           C   D           E       F           D   G   H
                                                                                                                                                                                                                                                                                                                                                           A   B




                                             _______), the effective date shall be the first day of ________________, 20_____. Please note: You
                                                               fective
                                             only need to mark changes to your plan throughout the remainder of this Agreement.

                         C.                     If this is a temporary benefit that lasts 2-6 months, the effective dates of this temporary
                                             benefit are from ___/01/___ through ___/___/___ for Defined Benefit division number _________.
                                                                                                                                                                                      Last day of month
                                             Please note: You only need to mark changes to your plan throughout the remainder of this
                                             Agreement.
                         D.                     If this is to separate employees from an existing Defined Benefit division (existing division
                                             number(s) ________________________________________________________) into a new division,
                                             the effective date shall be the first day of ___________________, 20____.
                         E.                     If this is to merge division(s) _____________________ into division(s) ____________________,
                                             the effective date shall be the first of ___________________, 20____.

Form DB-002 (version 2015-05-20)                                                                                                                                                                                                                                                                                                                                                                       Page 1 of 6
 Defined Benefit Plan Adoption Agreement
 III. Eligible Employees
     Only those Employees eligible for MERS membership may participate in the MERS Defined Benefit
     Plan. A copy of ALL employee enrollment forms must be submitted to MERS. The following groups of
     employees are eligible to participate:

     ___________________________________________________________________________________________
                                      (Name of Defined Benefit division – e.g. All Full Time Employees, or General after 7/01/13)

             Only retirees will be in this division.
     These employees are (check one or both):
             In a collective bargaining unit (attach cover page, retirement section, signature page)
             Subject to the same personnel policy

     To receive one month of service credit (check one):
             An employee shall work 10 _______ hour days.
             An employee shall work _______ hours in a month.
         All employees as classified under eligible employees, whether full or part time, who meet this
         criteria must be reported to MERS. If you change your current day of work definition to be more
         restrictive, the new definition only applies to employees hired after the effective date.
     To further define eligibility, check all that apply:
             Probationary Periods are allowed in one-month increments, no longer than 12 months. During
             this introductory period, the Employer will not report or provide service time for this period,
             including retroactively. Service will begin after the probationary period has been satisfied.
              The probationary period will be _______ month(s).
             Temporary employees in a position normally requiring less than a total of 12 whole months
             of work in the position may be excluded from membership. These employees must be notified
             in writing by the participating municipality that they are excluded from membership within 10
             business days of date of hire or execution of this Agreement.
              The temporary exclusion period will be _______ month(s).


 IV. Provisions
                                       I   P   Q   R   S   T   U   V                  S   W




     Valuation Date: ________________________ , 20 ____

          1. Review the valuation results

              It is recommended that your MERS representative presents and explains the valuation results to
              your municipality before adopting. Please choose one:
                                     e

                  Our MERS representative presented and explained the valuation results to the
                  _______________________ on _________________.
                          (Board, Finance Cmte, etc.)                            (mm/dd/yyyy)
                                                                                                 X
                                                                                                     U   P   Y   V   P   `   a   b   c   d   e   `




                  As an authorized representative of this municipality, I _______________________________
                  f   b   g   e   c
                                                                                                                                                     (Name)
                  ________________________________ waive the right for a presentation of the results.
                                                                       (Title)

Form DB-002 (version 2015-05-20)                                                                                                                              Page 2 of 6
 Defined Benefit Plan Adoption Agreement
          2. This Adoption Agreement will be implemented in conjunction with a current actuarial valuation
             certified by a MERS actuary that sets contribution rates.

          3. Annually, the MERS actuary will conduct an actuarial valuation to determine the employers’
             contribution rates. Employers are responsible for payment of said contributions at the rate, in
             the form and at the time that MERS determines.
                                                                     h
                                                                         R   i   W




          4. Benefit Multiplier (1%-2.5%, increments of 0.05%) _________ % (max 80% for multipliers
             over 2.25%)

                   Check here if multiplier will be effective for existing active members’ future service only
                    (Bridged Benefit as of effective date on page 1)
                        If checked, select one below:
                            Termination Final Average Compensation (calculated over the members entire
                            wage history)
                            Frozen Final Average Compensation (FAC is calculated twice, once for the
                            timeframe that matches the original multiplier, and once for the new multiplier)


          5. Final Average Compensation (Min 3 yr, increments of 1 yr) ________ years

          6. Vesting (5 -10 yrs, increments of 1 yr) ________ years

          7. Required employee contribution (Max 10%, increments of 0.01%) __________ %

          8. Compensation, for retirement purposes, is defined as base wages and all of the following.
             Check applicable boxes to exclude these types from your MERS reported wages:

                    Longevity pay
                    Overtime pay
                    Shift differentials
                    Pay for periods of absence from work by reason of vacation, holiday, and sickness
                    Workers’ compensation weekly benefits (if reported and are higher than regular earnings)
                    A member’s pre-tax contributions to a plan established under Section 125 of the IRC
                    Transcript fees paid to a court reporter
                    A taxable car allowance
                    Short term or long term disability payments
                    Payments for achievement of established annual (or similar period) performance goals
                    Payment for attainment of educational degrees from accredited colleges, universities, or for
                    acquisition of job-related certifications
                    Lump sum payments attributable to the member’s personal service rendered during the
                    FAC period
                    Other: __________________________________________________________________________
                    Other 2: ________________________________________________________________________




Form DB-002 (version 2015-05-20)                                                                          Page 3 of 6
 Defined Benefit Plan Adoption Agreement
         9. Early Normal Retirement with unreduced benefits

                    Age 50 with 25 years of service         Age 50 with 30 years of service
                    Age 55 with 15 years of service         Age 55 with 20 years of service
                    Age 55 with 25 years of service         Age 55 with 30 years of service
                    Any age with (20-30 yrs, in 1 yr increments) _____ years of service
                     ________________________________________________________________________________

         10. Other

                    Surviving Spouse will receive ______% of Straight Life benefit without a reduction to the
                    participant’s benefit
                    Duty death or disability enhancement (add up to additional 10 years of service credit not to
                    exceed 30 years of service)
                    Deferred Retirement Option Program (DROP)
                    Annuity Withdrawal Program (AWP)
                     Calculation of the actuarial equivalent of the lump sum distribution made under AWP will
                     be done using:
                         Interest rate for employee contributions as determined by the Retirement Board, or
                         MERS’ assumed rate of return as of the date of the distribution.

         11. Cost-of-Living Adjustment

                        All current retirees as of effective date        Future retirees who retire after
                        Retirees who retire between                      effective date
                        ____/01/____ and ____/01/____
                              (one time increase only)

                 Increase of _____% or $_____ per month             Increase of _____% or $_____ per month

                 Select one:                                             Annual automatic increase
                      Annual automatic increase
                      One-time increase

                 Select one:                                        Select one:
                      Compounding                                        Compounding
                      Non-compounding                                    Non-compounding

                 Employees must be retired _____ months             Employees must be retired _____ months
                 (6-12 months, increments of 1 month)               (6-12 months, increments of 1 month)


 V. Appointing MERS as the Plan Administrator
 The Employer hereby agrees to the provisions of this MERS Defined Benefit Plan Adoption Agreement and
 appoints MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
 also agrees that in the event any conflict between MERS Plan Document and the MERS Defined Benefit
 Plan, the provisions of the Plan Document control.


Form DB-002 (version 2015-05-20)                                                                            Page 4 of 6
 Defined Benefit Plan Adoption Agreement
 VI. Modification Of The Terms Of The Adoption Agreement
 If the Employer desires to amend any of its elections contained in this Adoption Agreement, including
 attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS, must
 adopt a new Adoption Agreement. The amendment of the new Agreement is not effective until approved
 by MERS.

 VII. Enforcement
 1.       The Employer acknowledges that the Michigan Constitution of 1963, Article 9, Section 24, provides
          that accrued financial benefits arising under a public Employer’s retirement plan are a contractual
          obligation of the Employer that may not be diminished or impaired, and prohibits the use of the
          Employer’s required current service funding to finance unfunded accrued liabilities.
 2.       The Employer agrees that, pursuant to the Michigan Constitution, its obligations to pay required
          contributions are contractual obligations to its employees and to MERS and may be enforced in a
          court of competent jurisdiction;
 3.       In accordance with the Constitution and this Agreement, if at any time the balance standing to the
          Employer’s credit in the reserve for employer contributions and benefit payments is insufficient
          to pay all service benefits due and payable to the entity’s retirees and beneficiaries, the Employer
          agrees and covenants to promptly remit to MERS the amount of such deficiency as determined by
          the Retirement Board within thirty (30) days notice of such deficiency.
 4.       The Employer acknowledges that wage and service reports are due monthly, and the employee
          contributions (if any) and Employer contributions are due and payable monthly, and must be
          submitted in accordance with the MERS Enforcement Procedure for Prompt Reporting and
          Payment, the terms of which are incorporated herein by reference.
 5.       Should the Employer fail to make its required contribution(s) when due, the retirement benefits due
          and payable by MERS on behalf of the entity to its retirees and beneficiaries may be suspended
          until the delinquent payment is received by MERS. MERS may implement any applicable interest
          charges and penalties pursuant to the MERS Enforcement Procedure for Prompt Reporting and
          Payment and Plan Document Section 79, and take any appropriate legal action, including but
          not limited to filing a lawsuit and reporting the entity to the Treasurer of the State of Michigan in
          accordance with MCL 141.1544(d), Section 44 of PA 436 of 2012, as may be amended.
 6.       The Employer acknowledges that changes to the Employer’s MERS Defined Benefit Plan must be
          made in accordance with the MERS Plan Document and applicable law, and agrees that MERS
          will not administer any such changes unless the MERS Plan Document and applicable law permit
          same, and MERS is capable of administering same.




Form DB-002 (version 2015-05-20)                                                                     Page 5 of 6
   Defined Benefit Plan Adoption Agreement
VIII. Execution
    Authorized Designee of Governing Body of Municipality or Chief Judge of Court
      The foregoing Adoption Agreement is hereby approved by ____________________________________ on
            h   q
                        U   V                   I   P   Q   c   p   b   c   g   S   W




                                                                                        (Name of Approving Employer)
      the _____ day of _______________________, 20_____.


      Authorized signature: _________________________________________________________________________
                    f           b   g   e   c




             _
      Title: _______________________________________________________________________________________
                         _
      Witness signature: ___________________________________________________________________________


   Received and Approved by the Municipal Employees’ Retirement System of Michigan
      Dated: __________________________ , 20 _____ Signature: _______________________________________
                                                                                        (Authorized MERS Signatory)




  Form DB-002 (version 2015-05-20)                                                                                     Page 6 of 6
 Defined Benefit Plan Adoption Agreement
                                                                                     #   $      %      &   '      (   )   &   0   0       (   1   (          2   3   4    5   1      (   (   6   )   7                  (       (   0                  '       (          




                             ¨   ©   ¨                        !   "          ¥   ¨                                                           ¡               ¡                                                       8   9           ¡                       ¡                                                       ¡   ¢   £   ¤   ¥   ¦   §   ¢           ¨   ©      ¡   ©   ¦   ¢




 The Employer, a participating municipality or participating court within the state of Michigan, hereby
 agrees to adopt and administer the MERS Defined Benefit Plan provided by the Municipal Employees’
 Retirement System of Michigan, as authorized by 1996 PA 220, in accordance with the MERS Plan
 Document, as both may be amended, subject to the terms and conditions herein.

 I. Employer Name _________________________________________________ Municipality #: _____________
 If new to MERS, please provide your municipality’s fiscal year: _____________ through _____________.
                                                                                                                                                                                                                                                                                                       Month                                                                                   Month
 II. Effective Date
                 Check one:
                         A.                                  If this is the initial Adoption Agreement for this group, the effective date shall be the first day
                                                             of ______________, 20___.


                                                                                  This municipality or division is new to MERS, so vesting credit prior to the initial MERS
                                                                                  effective date by each eligible participant shall be credited as follows (choose one):
                                                                                                              All prior service from date of hire
                                                                                                              Prior service proportional to assets transferred; all service used for vesting
                                                                                                              Prior service and vesting service proportional to assets transferred
                                                                                                              No prior service but grant vesting credit
                                                                                                              No prior service or vesting credit

                                                                                  Link this new division to division number _______ for purposes of determining
                                                                                  contributions (Unless otherwise specified, the standard transfer/rehire rules apply)


                         B.                  @
                                                If this is an amendment of an existing Adoption Agreement (Defined Benefit division number
                                                     A




                                                                                                                                                                                                                                                           C   D           E       F           D   G   H
                                                                                                                                                                                                                                                                                                                                                           A   B




                                             _______), the effective date shall be the first day of ________________, 20_____. Please note: You
                                             only need to mark changes to your plan throughout the remainder of this Agreement.

                         C.                     If this is a temporary benefit that lasts 2-6 months, the effective dates of this temporary
                                             benefit are from ___/01/___ through ___/___/___ for Defined Benefit division number _________.
                                                                                                                                                                                      Last day of month
                                             Please note: You only need to mark changes to your plan throughout the remainder of this
                                             Agreement.
                         D.                     If this is to separate employees from an existing Defined Benefit division (existing division
                                             number(s) ________________________________________________________) into a new division,
                                             the effective date shall be the first day of ___________________, 20____.
                         E.                     If this is to merge division(s) _____________________ into division(s) ____________________,
                                             the effective date shall be the first of ___________________, 20____.

Form DB-002 (version 2015-05-20)                                                                                                                                                                                                                                                                                                                                                                       Page 1 of 6
 Defined Benefit Plan Adoption Agreement
 III. Eligible Employees
     Only those Employees eligible for MERS membership may participate in the MERS Defined Benefit
     Plan. A copy of ALL employee enrollment forms must be submitted to MERS. The following groups of
     employees are eligible to participate:

     ___________________________________________________________________________________________
                          (Name of Defined Benefit division – e.g. All Full Time Employees, or General after 7/01/13)

             Only retirees will be in this division.
     These employees are (check one or both):
             In a collective bargaining unit (attach cover page, retirement section, signature page)
             Subject to the same personnel policy

     To receive one month of service credit (check one):
             An employee shall work 10 _______ hour days.
             An employee shall work _______ hours in a month.
         All employees as classified under eligible employees, whether full or part time, who meet this
         criteria must be reported to MERS. If you change your current day of work definition to be more
         restrictive, the new definition only applies to employees hired after the effective date.
     To further define eligibility, check all that apply:
             Probationary Periods are allowed in one-month increments, no longer than 12 months. During
             this introductory period, the Employer will not report or provide service time for this period,
             including retroactively. Service will begin after the probationary period has been satisfied.
              The probationary period will be _______ month(s).
             Temporary employees in a position normally requiring less than a total of 12 whole months
             of work in the position may be excluded from membership. These employees must be notified
             in writing by the participating municipality that they are excluded from membership within 10
             business days of date of hire or execution of this Agreement.
              The temporary exclusion period will be _______ month(s).


 IV. Provisions
     Valuation Date: ________________________ , 20 ____

          1. Review the valuation results

              It is recommended that your MERS representative presents and explains the valuation results to
              your municipality before adopting. Please choose one:

                  Our MERS representative presented and explained the valuation results to the
                  _______________________ on _________________.
                     (Board, Finance Cmte, etc.)            (mm/dd/yyyy)
                  As an authorized representative of this municipality, I _______________________________
                                                                                                      (Name)
                  ________________________________ waive the right for a presentation of the results.
                                     (Title)

Form DB-002 (version 2015-05-20)                                                                                      Page 2 of 6
 Defined Benefit Plan Adoption Agreement
          2. This Adoption Agreement will be implemented in conjunction with a current actuarial valuation
             certified by a MERS actuary that sets contribution rates.

          3. Annually, the MERS actuary will conduct an actuarial valuation to determine the employers’
             contribution rates. Employers are responsible for payment of said contributions at the rate, in
             the form and at the time that MERS determines.

          4. Benefit Multiplier (1%-2.5%, increments of 0.05%) _________ % (max 80% for multipliers
             over 2.25%)

                   Check here if multiplier will be effective for existing active members’ future service only
                    (Bridged Benefit as of effective date on page 1)
                        If checked, select one below:
                            Termination Final Average Compensation (calculated over the members entire
                            wage history)
                            Frozen Final Average Compensation (FAC is calculated twice, once for the
                            timeframe that matches the original multiplier, and once for the new multiplier)


          5. Final Average Compensation (Min 3 yr, increments of 1 yr) ________ years

          6. Vesting (5 -10 yrs, increments of 1 yr) ________ years
                                                                                    I   P   I




          7. Required employee contribution (Max 10%, increments of 0.01%) __________ %

          8. Compensation, for retirement purposes, is defined as base wages and all of the following.
             Check applicable boxes to exclude these types from your MERS reported wages:

                    Longevity pay
                    Overtime pay
                    Shift differentials
                    Pay for periods of absence from work by reason of vacation, holiday, and sickness
                    Workers’ compensation weekly benefits (if reported and are higher than regular earnings)
                    A member’s pre-tax contributions to a plan established under Section 125 of the IRC
                    Transcript fees paid to a court reporter
                    A taxable car allowance
                    Short term or long term disability payments
                    Payments for achievement of established annual (or similar period) performance goals
                    Payment for attainment of educational degrees from accredited colleges, universities, or for
                    acquisition of job-related certifications
                    Lump sum payments attributable to the member’s personal service rendered during the
                    FAC period
                    Other: __________________________________________________________________________
                    Other 2: ________________________________________________________________________




Form DB-002 (version 2015-05-20)                                                                          Page 3 of 6
 Defined Benefit Plan Adoption Agreement
         9. Early Normal Retirement with unreduced benefits

                    Age 50 with 25 years of service         Age 50 with 30 years of service
                    Age 55 with 15 years of service         Age 55 with 20 years of service
                    Age 55 with 25 years of service         Age 55 with 30 years of service
                    Any age with (20-30 yrs, in 1 yr increments) _____ years of service
                     ________________________________________________________________________________

         10. Other

                    Surviving Spouse will receive ______% of Straight Life benefit without a reduction to the
                    participant’s benefit
                    Duty death or disability enhancement (add up to additional 10 years of service credit not to
                    exceed 30 years of service)
                    Deferred Retirement Option Program (DROP)
                    Annuity Withdrawal Program (AWP)
                     Calculation of the actuarial equivalent of the lump sum distribution made under AWP will
                     be done using:
                         Interest rate for employee contributions as determined by the Retirement Board, or
                         MERS’ assumed rate of return as of the date of the distribution.

         11. Cost-of-Living Adjustment

                        All current retirees as of effective date        Future retirees who retire after
                        Retirees who retire between                      effective date
                        ____/01/____ and ____/01/____
                              (one time increase only)

                 Increase of _____% or $_____ per month             Increase of _____% or $_____ per month

                 Select one:                                             Annual automatic increase
                      Annual automatic increase
                      One-time increase

                 Select one:                                        Select one:
                      Compounding                                        Compounding
                      Non-compounding                                    Non-compounding

                 Employees must be retired _____ months             Employees must be retired _____ months
                 (6-12 months, increments of 1 month)               (6-12 months, increments of 1 month)


 V. Appointing MERS as the Plan Administrator
 The Employer hereby agrees to the provisions of this MERS Defined Benefit Plan Adoption Agreement and
 appoints MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
 also agrees that in the event any conflict between MERS Plan Document and the MERS Defined Benefit
 Plan, the provisions of the Plan Document control.


Form DB-002 (version 2015-05-20)                                                                            Page 4 of 6
 Defined Benefit Plan Adoption Agreement
 VI. Modification Of The Terms Of The Adoption Agreement
 If the Employer desires to amend any of its elections contained in this Adoption Agreement, including
 attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS, must
 adopt a new Adoption Agreement. The amendment of the new Agreement is not effective until approved
 by MERS.

 VII. Enforcement
 1.       The Employer acknowledges that the Michigan Constitution of 1963, Article 9, Section 24, provides
          that accrued financial benefits arising under a public Employer’s retirement plan are a contractual
          obligation of the Employer that may not be diminished or impaired, and prohibits the use of the
          Employer’s required current service funding to finance unfunded accrued liabilities.
 2.       The Employer agrees that, pursuant to the Michigan Constitution, its obligations to pay required
          contributions are contractual obligations to its employees and to MERS and may be enforced in a
          court of competent jurisdiction;
 3.       In accordance with the Constitution and this Agreement, if at any time the balance standing to the
          Employer’s credit in the reserve for employer contributions and benefit payments is insufficient
          to pay all service benefits due and payable to the entity’s retirees and beneficiaries, the Employer
          agrees and covenants to promptly remit to MERS the amount of such deficiency as determined by
          the Retirement Board within thirty (30) days notice of such deficiency.
 4.       The Employer acknowledges that wage and service reports are due monthly, and the employee
          contributions (if any) and Employer contributions are due and payable monthly, and must be
          submitted in accordance with the MERS Enforcement Procedure for Prompt Reporting and
          Payment, the terms of which are incorporated herein by reference.
 5.       Should the Employer fail to make its required contribution(s) when due, the retirement benefits due
          and payable by MERS on behalf of the entity to its retirees and beneficiaries may be suspended
          until the delinquent payment is received by MERS. MERS may implement any applicable interest
          charges and penalties pursuant to the MERS Enforcement Procedure for Prompt Reporting and
          Payment and Plan Document Section 79, and take any appropriate legal action, including but
          not limited to filing a lawsuit and reporting the entity to the Treasurer of the State of Michigan in
          accordance with MCL 141.1544(d), Section 44 of PA 436 of 2012, as may be amended.
 6.       The Employer acknowledges that changes to the Employer’s MERS Defined Benefit Plan must be
          made in accordance with the MERS Plan Document and applicable law, and agrees that MERS
          will not administer any such changes unless the MERS Plan Document and applicable law permit
          same, and MERS is capable of administering same.




Form DB-002 (version 2015-05-20)                                                                     Page 5 of 6
   Defined Benefit Plan Adoption Agreement
VIII. Execution
    Authorized Designee of Governing Body of Municipality or Chief Judge of Court
      The foregoing Adoption Agreement is hereby approved by ____________________________________ on
            `   a       b   c
                                                Q   R   S   T   U   V   T   W   X   Y




                                                                                        (Name of Approving Employer)
      the _____ day of _______________________, 20_____.


      Authorized signature: _________________________________________________________________________
                    d           V   W   e   T




             _
      Title: _______________________________________________________________________________________
                         _
      Witness signature: ___________________________________________________________________________


   Received and Approved by the Municipal Employees’ Retirement System of Michigan
      Dated: __________________________ , 20 _____ Signature: _______________________________________
                                                                                        (Authorized MERS Signatory)




  Form DB-002 (version 2015-05-20)                                                                                     Page 6 of 6
 Defined Benefit Plan Adoption Agreement
                                                                                     #   $      %      &   '      (   )   &   0   0       (   1   (          2   3   4    5   1      (   (   6   )   7                  (       (   0                  '       (          




                             ¨   ©   ¨                        !   "          ¥   ¨                                                           ¡               ¡                                                       8   9           ¡                       ¡                                                       ¡   ¢   £   ¤   ¥   ¦   §   ¢           ¨   ©      ¡   ©   ¦   ¢




 The Employer, a participating municipality or participating court within the state of Michigan, hereby
 agrees to adopt and administer the MERS Defined Benefit Plan provided by the Municipal Employees’
 Retirement System of Michigan, as authorized by 1996 PA 220, in accordance with the MERS Plan
 Document, as both may be amended, subject to the terms and conditions herein.

 I. Employer Name _________________________________________________ Municipality #: _____________
 If new to MERS, please provide your municipality’s fiscal year: _____________ through _____________.
                                                                                                                                                                                                                                                                                                       Month                                                                                   Month
 II. Effective Date
                 Check one:
                         A.                                  If this is the initial Adoption Agreement for this group, the effective date shall be the first day
                                                             of ______________, 20___.


                                                                                  This municipality or division is new to MERS, so vesting credit prior to the initial MERS
                                                                                  effective date by each eligible participant shall be credited as follows (choose one):
                                                                                                              All prior service from date of hire
                                                                                                              Prior service proportional to assets transferred; all service used for vesting
                                                                                                              Prior service and vesting service proportional to assets transferred
                                                                                                              No prior service but grant vesting credit
                                                                                                              No prior service or vesting credit

                                                                                  Link this new division to division number _______ for purposes of determining
                                                                                  contributions (Unless otherwise specified, the standard transfer/rehire rules apply)


                         B.                  @
                                                If this is an amendment of an existing Adoption Agreement (Defined Benefit division number
                                                     A




                                                                                                                                                                                                                                                           C   D           E       F           D   G   H
                                                                                                                                                                                                                                                                                                                                                           A   B




                                             _______), the effective date shall be the first day of ________________, 20_____. Please note: You
                                             only need to mark changes to your plan throughout the remainder of this Agreement.

                         C.                     If this is a temporary benefit that lasts 2-6 months, the effective dates of this temporary
                                             benefit are from ___/01/___ through ___/___/___ for Defined Benefit division number _________.
                                                                                                                                                                                      Last day of month
                                             Please note: You only need to mark changes to your plan throughout the remainder of this
                                             Agreement.
                         D.                     If this is to separate employees from an existing Defined Benefit division (existing division
                                             number(s) ________________________________________________________) into a new division,
                                             the effective date shall be the first day of ___________________, 20____.
                         E.                     If this is to merge division(s) _____________________ into division(s) ____________________,
                                             the effective date shall be the first of ___________________, 20____.

Form DB-002 (version 2015-05-20)                                                                                                                                                                                                                                                                                                                                                                       Page 1 of 6
 Defined Benefit Plan Adoption Agreement
 III. Eligible Employees
     Only those Employees eligible for MERS membership may participate in the MERS Defined Benefit
     Plan. A copy of ALL employee enrollment forms must be submitted to MERS. The following groups of
     employees are eligible to participate:

     ___________________________________________________________________________________________
                          (Name of Defined Benefit division – e.g. All Full Time Employees, or General after 7/01/13)

             Only retirees will be in this division.
     These employees are (check one or both):
             In a collective bargaining unit (attach cover page, retirement section, signature page)
             Subject to the same personnel policy

     To receive one month of service credit (check one):
             An employee shall work 10 _______ hour days.
             An employee shall work _______ hours in a month.
         All employees as classified under eligible employees, whether full or part time, who meet this
         criteria must be reported to MERS. If you change your current day of work definition to be more
         restrictive, the new definition only applies to employees hired after the effective date.
     To further define eligibility, check all that apply:
             Probationary Periods are allowed in one-month increments, no longer than 12 months. During
             this introductory period, the Employer will not report or provide service time for this period,
             including retroactively. Service will begin after the probationary period has been satisfied.
              The probationary period will be _______ month(s).
             Temporary employees in a position normally requiring less than a total of 12 whole months
             of work in the position may be excluded from membership. These employees must be notified
             in writing by the participating municipality that they are excluded from membership within 10
             business days of date of hire or execution of this Agreement.
              The temporary exclusion period will be _______ month(s).


 IV. Provisions
     Valuation Date: ________________________ , 20 ____

          1. Review the valuation results

              It is recommended that your MERS representative presents and explains the valuation results to
              your municipality before adopting. Please choose one:

                  Our MERS representative presented and explained the valuation results to the
                  _______________________ on _________________.
                     (Board, Finance Cmte, etc.)            (mm/dd/yyyy)
                  As an authorized representative of this municipality, I _______________________________
                                                                                                      (Name)
                  ________________________________ waive the right for a presentation of the results.
                                     (Title)

Form DB-002 (version 2015-05-20)                                                                                      Page 2 of 6
 Defined Benefit Plan Adoption Agreement
          2. This Adoption Agreement will be implemented in conjunction with a current actuarial valuation
             certified by a MERS actuary that sets contribution rates.

          3. Annually, the MERS actuary will conduct an actuarial valuation to determine the employers’
             contribution rates. Employers are responsible for payment of said contributions at the rate, in
             the form and at the time that MERS determines.

          4. Benefit Multiplier (1%-2.5%, increments of 0.05%) _________ % (max 80% for multipliers
             over 2.25%)

                   Check here if multiplier will be effective for existing active members’ future service only
                    (Bridged Benefit as of effective date on page 1)
                        If checked, select one below:
                            Termination Final Average Compensation (calculated over the members entire
                            wage history)
                            Frozen Final Average Compensation (FAC is calculated twice, once for the
                            timeframe that matches the original multiplier, and once for the new multiplier)


          5. Final Average Compensation (Min 3 yr, increments of 1 yr) ________ years

          6. Vesting (5 -10 yrs, increments of 1 yr) ________ years
                                                                                     I   P   Q




          7. Required employee contribution (Max 10%, increments of 0.01%) __________ %

          8. Compensation, for retirement purposes, is defined as base wages and all of the following.
             Check applicable boxes to exclude these types from your MERS reported wages:

                    Longevity pay
                    Overtime pay
                    Shift differentials
                    Pay for periods of absence from work by reason of vacation, holiday, and sickness
                    Workers’ compensation weekly benefits (if reported and are higher than regular earnings)
                    A member’s pre-tax contributions to a plan established under Section 125 of the IRC
                    Transcript fees paid to a court reporter
                    A taxable car allowance
                    Short term or long term disability payments
                    Payments for achievement of established annual (or similar period) performance goals
                    Payment for attainment of educational degrees from accredited colleges, universities, or for
                    acquisition of job-related certifications
                    Lump sum payments attributable to the member’s personal service rendered during the
                    FAC period
                    Other: __________________________________________________________________________
                    Other 2: ________________________________________________________________________




Form DB-002 (version 2015-05-20)                                                                          Page 3 of 6
 Defined Benefit Plan Adoption Agreement
         9. Early Normal Retirement with unreduced benefits

                    Age 50 with 25 years of service         Age 50 with 30 years of service
                    Age 55 with 15 years of service         Age 55 with 20 years of service
                    Age 55 with 25 years of service         Age 55 with 30 years of service
                    Any age with (20-30 yrs, in 1 yr increments) _____ years of service
                     ________________________________________________________________________________

         10. Other

                    Surviving Spouse will receive ______% of Straight Life benefit without a reduction to the
                    participant’s benefit
                    Duty death or disability enhancement (add up to additional 10 years of service credit not to
                    exceed 30 years of service)
                    Deferred Retirement Option Program (DROP)
                    Annuity Withdrawal Program (AWP)
                     Calculation of the actuarial equivalent of the lump sum distribution made under AWP will
                     be done using:
                         Interest rate for employee contributions as determined by the Retirement Board, or
                         MERS’ assumed rate of return as of the date of the distribution.

         11. Cost-of-Living Adjustment

                        All current retirees as of effective date        Future retirees who retire after
                        Retirees who retire between                      effective date
                        ____/01/____ and ____/01/____
                              (one time increase only)

                 Increase of _____% or $_____ per month             Increase of _____% or $_____ per month

                 Select one:                                             Annual automatic increase
                      Annual automatic increase
                      One-time increase

                 Select one:                                        Select one:
                      Compounding                                        Compounding
                      Non-compounding                                    Non-compounding

                 Employees must be retired _____ months             Employees must be retired _____ months
                 (6-12 months, increments of 1 month)               (6-12 months, increments of 1 month)


 V. Appointing MERS as the Plan Administrator
 The Employer hereby agrees to the provisions of this MERS Defined Benefit Plan Adoption Agreement and
 appoints MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
 also agrees that in the event any conflict between MERS Plan Document and the MERS Defined Benefit
 Plan, the provisions of the Plan Document control.


Form DB-002 (version 2015-05-20)                                                                            Page 4 of 6
 Defined Benefit Plan Adoption Agreement
 VI. Modification Of The Terms Of The Adoption Agreement
 If the Employer desires to amend any of its elections contained in this Adoption Agreement, including
 attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS, must
 adopt a new Adoption Agreement. The amendment of the new Agreement is not effective until approved
 by MERS.

 VII. Enforcement
 1.       The Employer acknowledges that the Michigan Constitution of 1963, Article 9, Section 24, provides
          that accrued financial benefits arising under a public Employer’s retirement plan are a contractual
          obligation of the Employer that may not be diminished or impaired, and prohibits the use of the
          Employer’s required current service funding to finance unfunded accrued liabilities.
 2.       The Employer agrees that, pursuant to the Michigan Constitution, its obligations to pay required
          contributions are contractual obligations to its employees and to MERS and may be enforced in a
          court of competent jurisdiction;
 3.       In accordance with the Constitution and this Agreement, if at any time the balance standing to the
          Employer’s credit in the reserve for employer contributions and benefit payments is insufficient
          to pay all service benefits due and payable to the entity’s retirees and beneficiaries, the Employer
          agrees and covenants to promptly remit to MERS the amount of such deficiency as determined by
          the Retirement Board within thirty (30) days notice of such deficiency.
 4.       The Employer acknowledges that wage and service reports are due monthly, and the employee
          contributions (if any) and Employer contributions are due and payable monthly, and must be
          submitted in accordance with the MERS Enforcement Procedure for Prompt Reporting and
          Payment, the terms of which are incorporated herein by reference.
 5.       Should the Employer fail to make its required contribution(s) when due, the retirement benefits due
          and payable by MERS on behalf of the entity to its retirees and beneficiaries may be suspended
          until the delinquent payment is received by MERS. MERS may implement any applicable interest
          charges and penalties pursuant to the MERS Enforcement Procedure for Prompt Reporting and
          Payment and Plan Document Section 79, and take any appropriate legal action, including but
          not limited to filing a lawsuit and reporting the entity to the Treasurer of the State of Michigan in
          accordance with MCL 141.1544(d), Section 44 of PA 436 of 2012, as may be amended.
 6.       The Employer acknowledges that changes to the Employer’s MERS Defined Benefit Plan must be
          made in accordance with the MERS Plan Document and applicable law, and agrees that MERS
          will not administer any such changes unless the MERS Plan Document and applicable law permit
          same, and MERS is capable of administering same.




Form DB-002 (version 2015-05-20)                                                                     Page 5 of 6
   Defined Benefit Plan Adoption Agreement
VIII. Execution
    Authorized Designee of Governing Body of Municipality or Chief Judge of Court
      The foregoing Adoption Agreement is hereby approved by ____________________________________ on
            a   b       c   d
                                                R   S   T   U   V   W   U   X   Y   `




                                                                                        (Name of Approving Employer)
      the _____ day of _______________________, 20_____.


      Authorized signature: _________________________________________________________________________
                    e           W   X   f   U




             _
      Title: _______________________________________________________________________________________
                         _
      Witness signature: ___________________________________________________________________________


   Received and Approved by the Municipal Employees’ Retirement System of Michigan
      Dated: __________________________ , 20 _____ Signature: _______________________________________
                                                                                        (Authorized MERS Signatory)




  Form DB-002 (version 2015-05-20)                                                                                     Page 6 of 6
 Defined Benefit Plan Adoption Agreement
                                                                                     #   $      %      &   '      (   )   &   0   0       (   1   (          2   3   4    5   1      (   (   6   )   7                  (       (   0                  '       (          




                             ¨   ©   ¨                        !   "          ¥   ¨                                                           ¡               ¡                                                       8   9           ¡                       ¡                                                       ¡   ¢   £   ¤   ¥   ¦   §   ¢           ¨   ©      ¡   ©   ¦   ¢




 The Employer, a participating municipality or participating court within the state of Michigan, hereby
 agrees to adopt and administer the MERS Defined Benefit Plan provided by the Municipal Employees’
 Retirement System of Michigan, as authorized by 1996 PA 220, in accordance with the MERS Plan
 Document, as both may be amended, subject to the terms and conditions herein.

 I. Employer Name _________________________________________________ Municipality #: _____________
 If new to MERS, please provide your municipality’s fiscal year: _____________ through _____________.
                                                                                                                                                                                                                                                                                                       Month                                                                                   Month
 II. Effective Date
                 Check one:
                         A.                                  If this is the initial Adoption Agreement for this group, the effective date shall be the first day
                                                             of ______________, 20___.


                                                                                  This municipality or division is new to MERS, so vesting credit prior to the initial MERS
                                                                                  effective date by each eligible participant shall be credited as follows (choose one):
                                                                                                              All prior service from date of hire
                                                                                                              Prior service proportional to assets transferred; all service used for vesting
                                                                                                              Prior service and vesting service proportional to assets transferred
                                                                                                              No prior service but grant vesting credit
                                                                                                              No prior service or vesting credit

                                                                                  Link this new division to division number _______ for purposes of determining
                                                                                  contributions (Unless otherwise specified, the standard transfer/rehire rules apply)


                         B.                  @
                                                If this is an amendment of an existing Adoption Agreement (Defined Benefit division number
                                                     A




                                                                                                                                                                                                                                                           C   D           E       F           D   G   H
                                                                                                                                                                                                                                                                                                                                                           @   B




                                             _______), the effective date shall be the first day of ________________, 20_____. Please note: You
                                             only need to mark changes to your plan throughout the remainder of this Agreement.

                         C.                     If this is a temporary benefit that lasts 2-6 months, the effective dates of this temporary
                                             benefit are from ___/01/___ through ___/___/___ for Defined Benefit division number _________.
                                                                                                                                                                                      Last day of month
                                             Please note: You only need to mark changes to your plan throughout the remainder of this
                                             Agreement.
                         D.                     If this is to separate employees from an existing Defined Benefit division (existing division
                                             number(s) ________________________________________________________) into a new division,
                                             the effective date shall be the first day of ___________________, 20____.
                         E.                     If this is to merge division(s) _____________________ into division(s) ____________________,
                                             the effective date shall be the first of ___________________, 20____.

Form DB-002 (version 2015-05-20)                                                                                                                                                                                                                                                                                                                                                                       Page 1 of 6
 Defined Benefit Plan Adoption Agreement
 III. Eligible Employees
     Only those Employees eligible for MERS membership may participate in the MERS Defined Benefit
     Plan. A copy of ALL employee enrollment forms must be submitted to MERS. The following groups of
     employees are eligible to participate:

     ___________________________________________________________________________________________
                          (Name of Defined Benefit division – e.g. All Full Time Employees, or General after 7/01/13)

             Only retirees will be in this division.
     These employees are (check one or both):
             In a collective bargaining unit (attach cover page, retirement section, signature page)
             Subject to the same personnel policy

     To receive one month of service credit (check one):
             An employee shall work 10 _______ hour days.
             An employee shall work _______ hours in a month.
         All employees as classified under eligible employees, whether full or part time, who meet this
         criteria must be reported to MERS. If you change your current day of work definition to be more
         restrictive, the new definition only applies to employees hired after the effective date.
     To further define eligibility, check all that apply:
             Probationary Periods are allowed in one-month increments, no longer than 12 months. During
             this introductory period, the Employer will not report or provide service time for this period,
             including retroactively. Service will begin after the probationary period has been satisfied.
              The probationary period will be _______ month(s).
             Temporary employees in a position normally requiring less than a total of 12 whole months
             of work in the position may be excluded from membership. These employees must be notified
             in writing by the participating municipality that they are excluded from membership within 10
             business days of date of hire or execution of this Agreement.
              The temporary exclusion period will be _______ month(s).


 IV. Provisions
     Valuation Date: ________________________ , 20 ____

          1. Review the valuation results

              It is recommended that your MERS representative presents and explains the valuation results to
              your municipality before adopting. Please choose one:

                  Our MERS representative presented and explained the valuation results to the
                  _______________________ on _________________.
                     (Board, Finance Cmte, etc.)            (mm/dd/yyyy)
                  As an authorized representative of this municipality, I _______________________________
                                                                                                      (Name)
                  ________________________________ waive the right for a presentation of the results.
                                     (Title)

Form DB-002 (version 2015-05-20)                                                                                      Page 2 of 6
 Defined Benefit Plan Adoption Agreement
          2. This Adoption Agreement will be implemented in conjunction with a current actuarial valuation
             certified by a MERS actuary that sets contribution rates.

          3. Annually, the MERS actuary will conduct an actuarial valuation to determine the employers’
             contribution rates. Employers are responsible for payment of said contributions at the rate, in
             the form and at the time that MERS determines.

          4. Benefit Multiplier (1%-2.5%, increments of 0.05%) _________ % (max 80% for multipliers
             over 2.25%)

                   Check here if multiplier will be effective for existing active members’ future service only
                    (Bridged Benefit as of effective date on page 1)
                        If checked, select one below:
                            Termination Final Average Compensation (calculated over the members entire
                            wage history)
                            Frozen Final Average Compensation (FAC is calculated twice, once for the
                            timeframe that matches the original multiplier, and once for the new multiplier)


          5. Final Average Compensation (Min 3 yr, increments of 1 yr) ________ years

          6. Vesting (5 -10 yrs, increments of 1 yr) ________ years
                                                                                     I   P   Q




          7. Required employee contribution (Max 10%, increments of 0.01%) __________ %

          8. Compensation, for retirement purposes, is defined as base wages and all of the following.
             Check applicable boxes to exclude these types from your MERS reported wages:

                    Longevity pay
                    Overtime pay
                    Shift differentials
                    Pay for periods of absence from work by reason of vacation, holiday, and sickness
                    Workers’ compensation weekly benefits (if reported and are higher than regular earnings)
                    A member’s pre-tax contributions to a plan established under Section 125 of the IRC
                    Transcript fees paid to a court reporter
                    A taxable car allowance
                    Short term or long term disability payments
                    Payments for achievement of established annual (or similar period) performance goals
                    Payment for attainment of educational degrees from accredited colleges, universities, or for
                    acquisition of job-related certifications
                    Lump sum payments attributable to the member’s personal service rendered during the
                    FAC period
                    Other: __________________________________________________________________________
                    Other 2: ________________________________________________________________________




Form DB-002 (version 2015-05-20)                                                                          Page 3 of 6
 Defined Benefit Plan Adoption Agreement
         9. Early Normal Retirement with unreduced benefits

                    Age 50 with 25 years of service         Age 50 with 30 years of service
                    Age 55 with 15 years of service         Age 55 with 20 years of service
                    Age 55 with 25 years of service         Age 55 with 30 years of service
                    Any age with (20-30 yrs, in 1 yr increments) _____ years of service
                     ________________________________________________________________________________

         10. Other

                    Surviving Spouse will receive ______% of Straight Life benefit without a reduction to the
                    participant’s benefit
                    Duty death or disability enhancement (add up to additional 10 years of service credit not to
                    exceed 30 years of service)
                    Deferred Retirement Option Program (DROP)
                    Annuity Withdrawal Program (AWP)
                     Calculation of the actuarial equivalent of the lump sum distribution made under AWP will
                     be done using:
                         Interest rate for employee contributions as determined by the Retirement Board, or
                         MERS’ assumed rate of return as of the date of the distribution.

         11. Cost-of-Living Adjustment

                        All current retirees as of effective date        Future retirees who retire after
                        Retirees who retire between                      effective date
                        ____/01/____ and ____/01/____
                              (one time increase only)

                 Increase of _____% or $_____ per month             Increase of _____% or $_____ per month

                 Select one:                                             Annual automatic increase
                      Annual automatic increase
                      One-time increase

                 Select one:                                        Select one:
                      Compounding                                        Compounding
                      Non-compounding                                    Non-compounding

                 Employees must be retired _____ months             Employees must be retired _____ months
                 (6-12 months, increments of 1 month)               (6-12 months, increments of 1 month)


 V. Appointing MERS as the Plan Administrator
 The Employer hereby agrees to the provisions of this MERS Defined Benefit Plan Adoption Agreement and
 appoints MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
 also agrees that in the event any conflict between MERS Plan Document and the MERS Defined Benefit
 Plan, the provisions of the Plan Document control.


Form DB-002 (version 2015-05-20)                                                                            Page 4 of 6
 Defined Benefit Plan Adoption Agreement
 VI. Modification Of The Terms Of The Adoption Agreement
 If the Employer desires to amend any of its elections contained in this Adoption Agreement, including
 attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS, must
 adopt a new Adoption Agreement. The amendment of the new Agreement is not effective until approved
 by MERS.

 VII. Enforcement
 1.       The Employer acknowledges that the Michigan Constitution of 1963, Article 9, Section 24, provides
          that accrued financial benefits arising under a public Employer’s retirement plan are a contractual
          obligation of the Employer that may not be diminished or impaired, and prohibits the use of the
          Employer’s required current service funding to finance unfunded accrued liabilities.
 2.       The Employer agrees that, pursuant to the Michigan Constitution, its obligations to pay required
          contributions are contractual obligations to its employees and to MERS and may be enforced in a
          court of competent jurisdiction;
 3.       In accordance with the Constitution and this Agreement, if at any time the balance standing to the
          Employer’s credit in the reserve for employer contributions and benefit payments is insufficient
          to pay all service benefits due and payable to the entity’s retirees and beneficiaries, the Employer
          agrees and covenants to promptly remit to MERS the amount of such deficiency as determined by
          the Retirement Board within thirty (30) days notice of such deficiency.
 4.       The Employer acknowledges that wage and service reports are due monthly, and the employee
          contributions (if any) and Employer contributions are due and payable monthly, and must be
          submitted in accordance with the MERS Enforcement Procedure for Prompt Reporting and
          Payment, the terms of which are incorporated herein by reference.
 5.       Should the Employer fail to make its required contribution(s) when due, the retirement benefits due
          and payable by MERS on behalf of the entity to its retirees and beneficiaries may be suspended
          until the delinquent payment is received by MERS. MERS may implement any applicable interest
          charges and penalties pursuant to the MERS Enforcement Procedure for Prompt Reporting and
          Payment and Plan Document Section 79, and take any appropriate legal action, including but
          not limited to filing a lawsuit and reporting the entity to the Treasurer of the State of Michigan in
          accordance with MCL 141.1544(d), Section 44 of PA 436 of 2012, as may be amended.
 6.       The Employer acknowledges that changes to the Employer’s MERS Defined Benefit Plan must be
          made in accordance with the MERS Plan Document and applicable law, and agrees that MERS
          will not administer any such changes unless the MERS Plan Document and applicable law permit
          same, and MERS is capable of administering same.




Form DB-002 (version 2015-05-20)                                                                     Page 5 of 6
   Defined Benefit Plan Adoption Agreement
VIII. Execution
    Authorized Designee of Governing Body of Municipality or Chief Judge of Court
      The foregoing Adoption Agreement is hereby approved by ____________________________________ on
            a   b       c   d
                                                R   S   T   U   V   W   U   X   Y   `




                                                                                        (Name of Approving Employer)
      the _____ day of _______________________, 20_____.


      Authorized signature: _________________________________________________________________________
                    e           W   X   f   U




             _
      Title: _______________________________________________________________________________________
                         _
      Witness signature: ___________________________________________________________________________


   Received and Approved by the Municipal Employees’ Retirement System of Michigan
      Dated: __________________________ , 20 _____ Signature: _______________________________________
                                                                                        (Authorized MERS Signatory)




  Form DB-002 (version 2015-05-20)                                                                                     Page 6 of 6
                                                                          CBIZ Retirement Plan Services
                                                                    CBIZ Benefits & Insurance Services, Inc.
                                                                         17199 Laurel Park North, Ste. 405
                                                                                            Livonia, MI 48152
                                                                                   http://retirement.cbiz.com




Municipal Employees' Retirement System of Michigan

                           Muskegon, City of (6116)
                             Divisions 01 and 21
                           Retirement Plan Options




  CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com



February 15, 2017

In care of:
Municipal Employees' Retirement
System of Michigan
1134 Municipal Way
Lansing, Michigan 48917


The purpose of this report is to show the financial implications to the employer of different
retirement plan design options for Muskegon, City of (6116) – Divisions 01 and 21. The report
consists of separate sections that correspond to the different plan options under consideration.
In addition, there is an executive summary at the beginning of the report that summarizes all the
options under consideration and shows the results for each option in graphical form, if multiple
options are requested. Each section contains the following additional detail:

      An executive summary that describes the plan provisions and provides a brief
       explanation of the results.
      An exhibit showing the short-term impact of the proposed benefit change – that is, the
       impact on next year’s contribution (this exhibit is only shown for supplemental valuations
       and supplemental valuations with bridge benefits).
      An exhibit showing the long term contribution impact of the proposed benefit change (i.e.
       a projection of the Actuarial Accrued Liabilities, Valuation Assets, funded ratio, and
       employer contributions under both the current and proposed plans).
      A graph showing the projected funded ratio and employer contribution under both the
       current and proposed plans.

This report should not be relied upon for any other purpose. Reliance on information contained
in this report by anyone for anything other than the intended purpose could be misleading.

The information in this report is purely actuarial in nature. It is not intended to serve as a
substitute for legal, accounting, and investment advice.

This report was prepared at the request of MERS and the municipality and may be
provided only in its entirety by the municipality to other interested parties. CBIZ
Retirement Plan Services is not responsible for the consequences of any unauthorized
use.

Please see the Comments on Asset Smoothing in the annual valuation report.

Please refer to the following sections of this report for additional information:

      Risk Characteristics of Defined Benefit Plans
      Important Comments
      Miscellaneous and Technical Assumptions
                                                                                                                        Page 2 of 16

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com




The undersigned are members of the American Academy of Actuaries (MAAA) and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinion
contained herein.

If you need further information to make an informed decision, please contact MERS at (800)
767-6377 for assistance.

Sincerely,




                                                                                                                        Page 3 of 16

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                      CBIZ Retirement Plan Services
                                                                                CBIZ Benefits & Insurance Services, Inc.
                                                                                     17199 Laurel Park North, Ste. 405
                                                                                                        Livonia, MI 48152
                                                                                               http://retirement.cbiz.com




TABLE OF CONTENTS                                                                                           Page Number

Option 1, 2 - Supplemental Valuation Results – Bridged                                                                   5 – 12
Benefits

Risk Characteristics of Defined Benefit Plans                                                                                13

Important Comments                                                                                                     14 – 15

Miscellaneous and Technical Assumptions                                                                                      16




                                                                                                                       Page 4 of 16

              CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
            investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                          CBIZ Retirement Plan Services
                                                                    CBIZ Benefits & Insurance Services, Inc.
                                                                         17199 Laurel Park North, Ste. 405
                                                                                            Livonia, MI 48152
                                                                                   http://retirement.cbiz.com




                            Option 1, 2
                   Supplemental Valuation Results
                         Bridged Benefits




                                                                                                           Page 5 of 16

  CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                         CBIZ Retirement Plan Services
                                                                                   CBIZ Benefits & Insurance Services, Inc.
                                                                                        17199 Laurel Park North, Ste. 405
                                                                                                           Livonia, MI 48152
                                                                                                  http://retirement.cbiz.com




Executive Summary

The purpose of this report is to show the impact on the liabilities and contributions of the
proposed benefit changes for Muskegon, City of (6116), Divisions 01 and 21. The following
proposed benefit changes have been considered:

    Division                                   Proposed Change in Benefit
NonUnion Gen           Bridged Benefit: 2.25% - for service prior to February 1, 2017, Frozen FAC
(01)                                  2.00% - for service after February 1, 2017
                                      Maximum Benefit: 80% FAC at Termination of Employment
                                      Employee Contribution: 5.00%
PolicePatrol           Bridged Benefit: 3.00% - for service prior to February 1, 2017, Frozen FAC
(21)                                  2.67% - for service after February 1, 2017
                                      Maximum Benefit: 80% FAC at Termination of Employment
                                      Employee Contribution: 4.00%*
*6.50% for 2017, 5.50% for 2018, 4.50% for 2019 and 4.00% thereafter.

The results of our calculations are shown as follows:

       Baseline: This is the current DB plan.
       Option 1: Bridged benefit with frozen FAC for Division 01.
       Option 2: Bridged benefit with frozen FAC for Division 21.
       The exhibit immediately following this page shows the short term impact of the proposed
        benefit change (ie the change in the Actuarial Accrued Liability [AAL] as of December
        31, 2015 and the change in the employer contribution for the fiscal year beginning July
        1, 2017).
       In order to illustrate the long-term impact of the proposed benefit change, we are also
        showing projections under both the current and the proposed benefits. The projection
        results are illustrated both in tabular and graphical form.

Please note the following regarding these calculations:

       The option would change both the AAL and the Normal Cost. The change in AAL will be
        recognized over 9 years. The employer Normal Cost is the cost to provide benefits
        accrued each year. In the long run, the employer is expected to pay the Normal Cost, if
        all the actuarial assumptions are met in the future.
       Under Option 1 & 2 (bridged benefit with frozen FAC) there is an immediate impact on
        the unfunded accrued liability (UAL) because the Final Average Compensation (FAC) for
        current active members is frozen. This results in the largest part of the decrease in the
        employer contribution.
       Because the proposed benefit change results in a reduction in employer contributions,
        under the MERS funding policy, the impact of the change is recognized over a period of
        time (i.e. the change in the AAL is amortized over a fixed period).


                                                                                                                          Page 6 of 16

                 CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
               investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                          CBIZ Retirement Plan Services
                                                                    CBIZ Benefits & Insurance Services, Inc.
                                                                         17199 Laurel Park North, Ste. 405
                                                                                            Livonia, MI 48152
                                                                                   http://retirement.cbiz.com




                                                                                                           Page 7 of 16

  CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                                                                CBIZ Retirement Plan Services
                                                                                                                                          CBIZ Benefits & Insurance Services, Inc.
                                                                                                                                               17199 Laurel Park North, Ste. 405
                                                                                                                                                                  Livonia, MI 48152
                                                                                                                                                         http://retirement.cbiz.com


                                                     Municipal Employees Retirement System of Michigan
                                                     Muskegon, City of (6116) Division 01 - NonUnion Gen
                                                10 Year Projections of Employer Contributions and Funded Ratios

                                                               Baseline                                                   Option 1 - Bridged to a 2.00% Multiplier (Frozen FAC)
                                                                               Total                                                                           Total
 Valuation                                                                  Employer                                                                        Employer
Year Ending Fiscal Year       Actuarial                                    Contribution Total Employer            Actuarial                               Contribution Total Employer
 December Beginning           Accrued          Valuation       Funded        Inflated    Contribution             Accrued        Valuation      Funded       Inflated       Contribution
    31,        July 1,        Liability         Assets          Ratio         Dollars   Current Dollars           Liability        Assets         Ratio       Dollars     Current Dollars
   2015         2017          16,342,000      13,320,000         82%         502,000           502,000            15,161,000 13,320,000            88%       306,000              306,000
   2016         2018          16,842,000      13,315,000         79%         625,000           602,000            15,551,000 13,315,000            86%       400,000              386,000
   2017         2019          17,312,000      13,389,000         77%         789,000           733,000            15,905,000 13,280,000            83%       520,000              483,000
   2018         2020          17,748,000      13,573,000         76%         870,000           779,000            16,220,000 13,236,000            82%       593,000              531,000
   2019         2021          18,136,000      13,827,000         76%         955,000           824,000            16,488,000 13,230,000            80%       670,000              578,000
   2020         2022          18,469,000      14,542,000         79%         990,000           824,000            16,704,000 13,642,000            82%       697,000              580,000
   2021         2023          18,736,000      15,289,000         82%        1,031,000          827,000            16,865,000 14,076,000            83%       728,000              584,000
   2022         2024          18,923,000      16,159,000         85%         350,000           270,000            16,962,000 14,615,000            86%       346,000              267,000
   2023         2025          19,029,000      17,047,000         90%         356,000           265,000            16,994,000 15,161,000            89%       353,000              263,000
   2024         2026          19,058,000      17,594,000         92%         363,000           261,000            16,966,000 15,509,000            91%       361,000              259,000
   2025         2027          19,009,000      17,760,000         93%         370,000           256,000            16,879,000 15,636,000            93%       370,000              256,000

 Notes:
 (1) The Actuarial Accrued Liability, Valuation Assets, and Funded Ratio are calculated as of December 31.
 (2) Contributions are calculated for the applicable fiscal year.
 (3) The impact of the assumptions change will be phased-in over a 5 year period. This phase-in has not been reflected in the Baseline or Option 1.




                                                                                                                                                                           Page 8 of 16

                                             CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
                                           investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                                                                                   CBIZ Retirement Plan Services
                                                                                                                                                         CBIZ Benefits & Insurance Services, Inc.
                                                                                                                                                              17199 Laurel Park North, Ste. 405
                                                                                                                                                                                 Livonia, MI 48152
                                                                                                                                                                        http://retirement.cbiz.com


                                                               Municipal Employees' Retirement System of Michigan
                                                               Muskegon, City of (6116) Division 01 - NonUnion Gen

                                     Projected Funded Ratio                                                                             Projected $ Contribution



               120.0%                                                                                              1,200,000




               100.0%                                                                                              1,000,000




                                                                                                  $ Contribution
Funded Ratio




                80.0%                                                                                                800,000




                60.0%                                                                                                600,000



                40.0%                                                                                                400,000



                20.0%                                                                                                200,000



                 0.0%                                                                                                     0



                                                                                  Baseline                                                                                   Baseline
                        Valuation Year Ending December 31,                                                                        Fiscal Year Beginning July 1,
                                                                                  Option 1                                                                                   Option 1

                          Baseline - Current plan
                          Option 1 - Bridged to a 2.00% Multiplier (Frozen FAC)



                          Comments:

                          ·In the long run, the employer contribution will trend towards the long term cost of the different benefit structures. The long term cost of
                          the various benefit structures expressed as a percent of pay is shown in the table below:
                                                                                                                   Baseline                   Option 1
                          Total long term cost                                                                      11.59%                    10.35%
                          Employee contribution                                                                     5.00%                      5.00%
                          Employer long term cost                                                                   6.59%                      5.35%

                          ·Under Option 1 there is a decrease in the employer contribution as a result of the lower multiplier.
                          ·Under Option 1 there is an immediate impact on the UAL (unfunded accued liability) because the FAC for the current active members is
                          frozen.

                                                                                                                                                                                        Page 9 of 16

                                   CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
                                 investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                             CBIZ Retirement Plan Services
                                                                                                    CBIZ Benefits & Insurance Services, Inc.
                                                                                                         17199 Laurel Park North, Ste. 405
                                                                                                                            Livonia, MI 48152
                                                                                                                   http://retirement.cbiz.com


                          Muskegon, City of (6116) - PolicePatrol (Division 21)
                Employer Computed Contributions - Based on 12/31/2015 Actuarial Valuation
                                                                                  Current                    Proposed
                                                                                  Benefits                    Benefits                    Difference

   1. Benefits
      a) Benefit Formula                                                   3.00% Mult. (75% Max)        Bridged Benefit**            Bridged Benefit**
      b) Normal Retirement Age                                                      55                          55
      c) Vesting Provision                                                         V-10                        V-10
      d) F50 Retirement Condition                                                F50(25)                     F50(25)
      e) F55 Retirement Condition                                                    -                           -
      f) F(N) Retirement Condition                                                   -                           -
      g) Rule of X                                                                   -                           -
      h) FAC Period                                                              FAC - 3                     FAC - 3
      i) RS50 Percent                                                              50%                         50%
      j) DROP+                                                                       -                           -
      k) D-2                                                                    D-2 (25%)                   D-2 (25%)
      l) Benefit E                                                                   -                           -
      m) Benefit E1                                                                  -                           -
      n) Benefit E2                                                                  -                           -
      o) Load for Sick Leave in FAC                                                  -                           -
      p) Member Contribution Rate                                                 6.50%                      6.5% ***

   2. Member Counts
      a) Active                                                                              39                          39                              0
      b) Retired                                                                              7                           7                              0
      c) Vested Former Members                                                                6                           6                              0
      d) Total                                                                               52                          52                              0

   3. Annual Payroll                                                          $    2,721,206             $     2,721,206              $             -

   4. Actuarial Value of Assets                                               $   15,453,521             $    15,453,521              $             -

   5. Actuarial Accrued Liability
      a) Active                                                               $   12,933,569             $    10,951,448              $     (1,982,121)
      b) Retired                                                                   3,226,077                   3,226,077                             0
      c) Vested Former Members                                                       801,519                     801,519                             0
      d) Pending Refunds                                                              32,133                      32,133                             0
      e) Total                                                                $   16,993,298             $    15,011,177              $     (1,982,121)

   6. Unfunded Accrued Liability (UAL) (5e - 4)                               $    1,539,777             $       (442,344)            $     (1,982,121)

   7. Division Percent Funded (4 / 5e)                                                   90.9 %                     102.9 %                        12.0 %

   8. Annual Employer Cost
      a) Employer Normal Cost                                                 $      257,040             $       228,905              $        (28,135)
      b) Amortization of UAL*                                                        243,948                     (56,316)                     (300,264)
      c) Total Employer Contribution $ (8a + 8b)                              $      500,988             $       172,589              $       (328,399)

* The amortization period is 9 years if the UAL is positive, and 10 years if the UAL is negative, as of the beginning of the fiscal year for which the
  contribution is being calculated.
** Bridged Benefit: 3.00% - for service prior to February 1, 2017, Frozen FAC
                    2.67% - for service after February 1, 2017
                    Maximum Benefit: 80% FAC at Termination of Employment

*** 6.50% for 2017, 5.50% for 2018, 4.50% for 2019 and 4.00% thereafter.

^ Please note the new assumptions will be phased in over a 5 year period. The results shown do not reflect any phase-in of the new assumptions.

This report may be provided to other interested parties only in its entirety and only with the prior permission of
MERS and the municipality.


                                                                                                                                                        Page 10 of 16

            CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
          investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                                                                          CBIZ Retirement Plan Services
                                                                                                                                                      CBIZ Benefits & Insurance Services, Inc.
                                                                                                                                                           17199 Laurel Park North, Ste. 405
                                                                                                                                                                              Livonia, MI 48152
                                                                                                                                                                     http://retirement.cbiz.com


                                                                   Municipal Employees Retirement System of Michigan
                                                                     Muskegon, City of (6116) Division 21 - PolicePatrol
                                                              10 Year Projections of Employer Contributions and Funded Ratios

                                                                Baseline                                         Option 2 - Bridged to a 2.67% Multiplier (Frozen FAC), 4% Member Contributions
                                                                                Total
 Valuation                                                                   Employer
Year Ending Fiscal Year         Actuarial                                   Contribution Total Employer                                                           Total Employer     Total Employer
 December Beginning             Accrued           Valuation                   Inflated    Contribution               Actuarial                         Funded      Contribution       Contribution
    31,        July 1,          Liability          Assets      Funded Ratio    Dollars   Current Dollars         Accrued Liability Valuation Assets     Ratio     Inflated Dollars   Current Dollars
   2015         2017             16,993,000      15,454,000        91%        501,000       501,000                   15,011,000     15,454,000         103%          173,000           173,000
   2016         2018             18,437,000      16,288,000        88%        590,000       569,000                   16,256,000     16,288,000         100%          252,000           243,000
   2017         2019             19,942,000      17,238,000        86%        711,000       661,000                   17,555,000     17,055,000          97%          331,000           308,000
   2018         2020             21,432,000      18,284,000        85%        791,000       708,000                   18,836,000     17,721,000          94%          405,000           363,000
   2019         2021             22,884,000      19,299,000        84%        883,000       762,000                   20,075,000     18,313,000          91%          481,000           415,000
   2020         2022             24,316,000      20,897,000        86%        906,000       754,000                   21,299,000     19,423,000          91%          489,000           407,000
   2021         2023             25,693,000      22,513,000        88%        933,000       748,000                   22,487,000     20,539,000          91%          500,000           401,000
   2022         2024             27,018,000      24,306,000        90%        523,000       404,000                   23,639,000     21,798,000          92%          492,000           380,000
   2023         2025             28,264,000      26,098,000        92%        516,000       384,000                   24,738,000     23,035,000          93%          483,000           360,000
   2024         2026             29,365,000      27,610,000        94%        512,000       368,000                   25,731,000     24,199,000          94%          477,000           342,000
   2025         2027             30,300,000      28,793,000        95%        510,000       353,000                   26,601,000     25,263,000          95%          471,000           326,000

 Notes:
 (1) The Actuarial Accrued Liability, Valuation Assets, and Funded Ratio are calculated as of December 31.
 (2) Contributions are calculated for the applicable fiscal year.
 (3) The impact of the assumptions change will be phased-in over a 5 year period. This phase-in has not been reflected in the Baseline or Option 2.
 (4) Option 2 Member Contribtuion rate is 6.50% for 2017, 5.50% for 2018, 4.50% for 2019 and 4.00% thereafter.




                                                                                                                                                                                           Page 11 of 16

                                                CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
                                              investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                                                                              CBIZ Retirement Plan Services
                                                                                                                                                      CBIZ Benefits & Insurance Services, Inc.
                                                                                                                                                           17199 Laurel Park North, Ste. 405
                                                                                                                                                                              Livonia, MI 48152
                                                                                                                                                                     http://retirement.cbiz.com


                                                               Municipal Employees' Retirement System of Michigan
                                                                Muskegon, City of (6116) Division 21 - PolicePatrol

                                     Projected Funded Ratio                                                                             Projected $ Contribution



               120.0%                                                                                              1,000,000


                                                                                                                     900,000

               100.0%
                                                                                                                     800,000


                                                                                                                     700,000




                                                                                                  $ Contribution
Funded Ratio




                80.0%

                                                                                                                     600,000


                60.0%                                                                                                500,000


                                                                                                                     400,000
                40.0%
                                                                                                                     300,000


                                                                                                                     200,000
                20.0%

                                                                                                                     100,000

                 0.0%                                                                                                     0



                                                                                Baseline                                                                                  Baseline
                        Valuation Year Ending December 31,                                                                        Fiscal Year Beginning July 1,
                                                                                Option 2                                                                                  Option 2

                          Baseline - Current plan
                          Option 2 - Bridged to a 2.67% Multiplier (Frozen FAC), 4% Member Contributions
                          (Member Contribtuion rate is 6.50% for 2017, 5.50% for 2018, 4.50% for 2019 and 4.00% thereafter.)

                          Comments:

                          ·In the long run, the employer contribution will trend towards the long term cost of the different benefit structures. The long term cost of
                          the various benefit structures expressed as a percent of pay is shown in the table below:
                                                                                                                   Baseline                   Option 2
                          Total long term cost                                                                      16.14%                    14.55%
                          Employee contribution                                                                     6.50%                      4.00%
                          Employer long term cost                                                                   9.64%                     10.55%

                          ·Under Option 2 there is a decrease in the employer contribution as a result of the lower multiplier.
                          ·Under Option 2 there is an immediate impact on the UAL (unfunded accued liability) because the FAC for the current active members is
                          frozen.                                                                                                                                                    Page 12 of 16

                                      CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
                                    investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com


                       Risk Characteristics of Defined Benefit Plans

It is important to understand that retirement plans, by their nature, are exposed to certain
risks. While risks cannot be eliminated entirely, they can be mitigated through various
strategies. Below are a few examples of risk (this is not an all-inclusive list):
     • Economic - investment return, wage inflation, etc.
     • Demographic - longevity, disability, retirement, etc.
     • Plan Sponsor and Employees - contribution volatility, attract/retain employees, etc.

The MERS Retirement Board adopts certain assumptions and methods to mitigate the economic
and demographic risks, and the contribution volatility risks. For example, the investment risk is
the largest economic risk and is mitigated by having a balanced portfolio and a clearly defined
investment strategy. Demographic risks vary based on the age of the workforce and are
mitigated by preparing special studies called experience studies on a regular basis to determine
if the assumptions used are reasonable compared to the experience. Risk may be mitigated
through a plan design that provides benefits that are sustainable in the long run. An Experience
Study is completed every five years to review the assumptions and methods. The next
Experience Study will be completed in 2020.




                                                                                                                        Page 13 of 16

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                   CBIZ Retirement Plan Services
                                                                             CBIZ Benefits & Insurance Services, Inc.
                                                                                  17199 Laurel Park North, Ste. 405
                                                                                                     Livonia, MI 48152
                                                                                            http://retirement.cbiz.com




                                          Important Comments

1. The results are based on information provided by the municipality and MERS. The
   actuary is unaware of any additional information that would impact these results.

2. This report describes the financial effect of the proposed benefit plan. No statement
   contained within is a recommendation in favor of or in opposition to the proposed benefit
   plan.

3. The reader of this report should keep in mind that actuarial calculation are mathematical
   estimates based on current data and assumptions of future events (which may or may
   not materialize). As a result, actuarial calculations can and do vary from one valuation
   year to the next, sometimes significantly if the group valued is very small (less than 30
   lives). The cost impact of a benefit change may fluctuate over time, as the
   demographics of the group changes.

4. The calculations in this report were prepared based on December 31, 2015,
   demographic and financial information unless noted elsewhere in the report.

5. The valuation date is December 31, 2015.

6. Please note, the assumptions and methods used in these calculations are consistent
   with those used in the December 31 2015, Annual Actuarial Valuation (except where
   noted otherwise) and are summarized in an Appendix. This Appendix is located on the
   MERS website at www.mersofmich.com.

7. In the event that more than one plan change is being considered, the user of this report
   should remember that the results of separate actuarial valuations cannot be added
   together. The total can be considerably greater than the sum of the parts due to the
   interaction of various plan provisions with each other and with the assumptions used.

8. Retirement benefits and employer contributions are based on a percentage of members'
   reported pay for open divisions. If actual reported payroll differs substantially from payroll
   used in this report, the dollar contribution should be adjusted proportionately.


9. For retiree only divisions or divisions whose new hires go into Defined Contribution, the
   Retirement Board has adopted the “Amortization Policy for Closed Divisions within Open
   Municipalities.” This policy accelerates the payment of the unfunded accrued liability.




                                                                                                                    Page 14 of 16

           CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
         investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                      CBIZ Retirement Plan Services
                                                                                CBIZ Benefits & Insurance Services, Inc.
                                                                                     17199 Laurel Park North, Ste. 405
                                                                                                        Livonia, MI 48152
                                                                                               http://retirement.cbiz.com


10. The following information, assumptions and funding methods were used in the
    projections under the various options:
        a. Demographic, financial information and benefit provisions provided by MERS for
            the December 31, 2015 annual valuation.
        b. The assumptions and methods used in the December 31, 2015 annual valuation,
            except where noted otherwise.
        c. All demographic assumptions will be met during the projection period.
        d. The active population is assumed to remain stable during the projection period.
        e. Demographic assumptions under the DC plan are unchanged from those of the
            DB plan.
        f. The Market Value of Assets will earn the assumed investment return each year
            during the projection period.
        g. There will be no benefit changes during the projection period.
        h. The employer contributions through June 30, 2017 are not affected, and are
            based on previous annual actuarial valuations.

11. The results do not show the potential impact on other post-employment benefits (such
    as retiree health care insurance) or ancillary benefits (such as life insurance).

12. If the user of this report is not sure how to interpret certain results in the report or how to
    read the report, they should contact MERS at (800) 767-6377 before relying on the
    results of this report.

13. Additional disclosures required by Actuarial Standard of Practice:

              All actuarial calculations have been prepared in conformity with generally
               accepted actuarial principles and practices and with the Actuarial Standards of
               Practice issued by the Actuarial Standards Board.

              The valuation was based upon information furnished by the municipality and
               MERS staff. We checked for internal and year to year consistency, but did not
               otherwise audit the data. CBIZ Retirement Plan Services is not responsible for
               the accuracy or completeness of the information provided for the preparation of
               these calculations.




                                                                                                                       Page 15 of 16

              CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
            investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                  CBIZ Retirement Plan Services
                                                                            CBIZ Benefits & Insurance Services, Inc.
                                                                                 17199 Laurel Park North, Ste. 405
                                                                                                    Livonia, MI 48152
                                                                                           http://retirement.cbiz.com




                       Miscellaneous and Technical Assumptions

1. The results in this report are based on the assumptions used in the December 31, 2015
   annual valuation.
2. FAC Load – 2.00%
3. Withdrawal Scaling Factor – 92%




                                                                                                                   Page 16 of 16

          CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
        investment advisory, third party administration, actuarial and other corporate retirement plan services.
         Commission Meeting Date: February 28, 2017




Date:          February 28, 2017
To:            Honorable Mayor & City Commission
From:          Department of Public Works

RE:            Parks & Recreation Master Plan Amendment


SUMMARY OF REQUEST: To a p p r o ve a r e s o l u t i o n a me n d i n g
t h e P a r ks a n d Re c r e a t i o n Mas t er p l a n t o i n c l u de u p d a t i n g
i n f r a st r u ct u r e a t Ha rt s h o r n Ma r i n a . Th e Mi c h i g a n
De p a r t me n t o f Na t u r a l Re so u r c e s r e q u ir es s p ec i f ic
l a n g u a g e a n d p ro p o s a l s b ef o r e th e c it y i s e l i g i b le t o a p p l y
f o r s t at e ma tc h in g g r a n ts .


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: To hold a public hearing and for the City
Commission to adopt the “Muskegon Parks & Recreation Master Plan
2016” Hartshorn Marina amendments for 2017, and authorize the Mayor
& Clerk to sign documents necessary related to the amendments.
                                             Resolution No.

                                    MUSKEGON CITY COMMISSION

                                        CITY OF MUSKEGON
                                   RECREATION PLAN AMENDMENT
                                     RESOLUTION OF ADOPTION

WHEREAS, the City of Muskegon has undertaken a Parks and Recreation Plan Amendment which
describes changes to the Five Year Parks and Recreation Plan originally adopted in 2016 and indicates
actions to be taken to improve and maintain recreation facilities during the same five year period; and

WHEREAS, a public comment session was held February 20, 2017 at City Hall, 933 Terrace St. to
provide an opportunity for citizens to express opinions, ask questions, and discuss all aspects of the
Recreation Plan Amendment; and

WEREAS, a public hearing was held before the City of Muskegon City Commission on February 28,
2017 at City Hall, 933 Terrace St.; and

WHEREAS, after the public hearing, the City of Muskegon City Commission voted to adopt said
Recreation Plan Amendment.

NOW, THEREFORE, BE IT RESOLVED, that the City of Muskegon City Commission hereby adopts
the City of Muskegon “Muskegon Parks and Recreation Master Plan 2016” as amended.


Adopted this       of                    _, 2017.

          AYES:

          NAYS:

          ABSTAIN:

                                                                By:
                                                                              Stephen J. Gawron, Mayor

                                                               Attest:
                                                                                  Ann Meisch, City Clerk
                    PROPOSED CHANGES MADE TO THE MASTERPLAN
                                  February 2017

                              ACTION PLAN AND ASSESMENT

Public Access Harbor and Launch Ramps

Administered by the Department of Public Works, the marina division is responsible for the
operation and maintenance of Hartshorn Marina, four boat launch ramps, moorings, and
summer catamaran storage areas at Pere Marquette Park and Harbour Towne Beach.

Staff includes a Harbor Master, one administrative assistant, one facility manager, and
eight seasonal staff to provide customer service and maintenance during the boating
season.

Hartshorn Marina

The main harbor has 135 variable size slips, forty percent of which are designated as
transient, and can be reserved through the DNR website or hotline. The DNR, Muskegon
County Visitors Bureau, Fricano’s “On The Lake”, and other venues, provide the
public/private partnership for promoting new business to the marina.

The facility includes a small Harbor Master’s office for customer and hospitality services,
adjoined by a main bathroom/shower facility; two picnic shelters, dockside storage, and
individual shore power and potable water access.

A phased plan to replace the Harbor Master’s office, which was built in 1960, and the
adjoining bathhouse, with a single, multi-functional facility, including: underground
irrigation, landscaping, office space, public ADA accessible bathrooms and showers, a
guest laundry with kitchen/vending common, maintenance and professional space.

Replacement of the center floating pier is a critical phase of the plan. The “T-Dock” was
constructed and installed in 1986, and has lost much of the original floatation. The center
floating dock also needs considerable utility upgrades and repairs to make the structure
code-compliant. The new structure should include ADA accessibility, mixed-size seasonal
and transient slips, sanitary pump-out, and public access fishing piers.

Launch Ramp Facilities

Muskegon maintains four public launch ramps along the southern shore of Muskegon
Lake, which are from east to west: Fisherman’s Landing, Hartshorn Launch, Grand Trunk,
and the Jaycee’s Launch (a.k.a. Cottage Grove). Each ramp includes a minimum of four
launching lanes, floating docks, staging and parking areas, and portable public restrooms.
Heavy usage during the boating season significantly increases wear to the infrastructures.

The marina fund purchased new launch ramp docks for Hartshorn and Cottage Grove in
2016, at a combined cost of $39,080 dollars for 4 docks.

The Jaycee’s Launch, Grand Trunk, and Fisherman’s Landing will require the submerged
concrete panel portions of the ramps replaced in the next five years. Pavement, and
improved accessibility and lighting are needed at Grand Trunk.

A fish cleaning station is also highly desirable for at least one of Muskegon’s public launch
facilities.

Dredging the launch ramps is not anticipated over the next 5 to 10 years.
Marina Maintenance Plan

Hartshorn is staffed with a Harbor Master, facility manager and administrative assistant.
The Harbor Master performs off-season inspections and facilitates repairs of the de-icing
system, and other maintenance items as are required.

The seasonal marina aides assist customers, tourists and citizens, and perform most
primary maintenance duties.

The Department of Public Works assists marina employees with more complex tasks, or
those requiring heavy equipment and specialized knowledge of utilities.

Maintenance tasks include daily inspection of marina infrastructure, grounds maintenance,
upkeep of the buildings and bath houses, customer requests for dock repairs or cleaning,
repairing irrigation systems, and weed control.

The marina staff performs daily maintenance and cleaning of the main facility and
grounds, and at each municipal launch ramps.

A separate mooring field with fifty buoys, and a smaller thirty-slip marina with primitive
slippage (no power/water), are also maintained by marina staff.
                           Maintenance and Salary Budget
                                       2016

MAINTENANCE COST            2016   BUDGETED    CONTRACTUAL SERVICES        2016    BUDGETED
OFFICE SUPPLIES                         $300   OTHER INSURANCE & BONDS                 $3,497
PUBLICATIONS & MEMBER                   $300   CONSULTING FEES                           $900
POSTAGE                                 $250   CONTRACTUAL SERVICES                   $86,162
CLOTHING                                $500   AQUATIC NUISANCE                        $3,348
IRRIGATION SUPPLIES                     $350   PRINTING                                  $600
TOOLS                                   $500   ADVERTISING                               $500
MOTOR FUEL                              $100   Harbor Twn Slip Mnt Fees                $2,000
MEDICAL SUPPLIES                         $50   Pigeon Key Slip Mnt Fees
MISCELL MATERIAL & SUPPL              $3,000   INDIRECT COST                           $5,549
COMPUTER SUPPLIES                       $300   copy machine                              $300
BUILDING SUPPLIES                     $1,500   VEHICLE RENTAL                          $9,830
CUSTODIAL SUPPLIES                      $900   CITY SERVICES FEE                      $11,612
EQUIPMENT SUPPLIES                      $150   BANK CHARGES                            $1,400
SEEEDING & PLANATING SUP                $500   TELEPHONE                               $2,500
                           TOTAL     $8,700    ELECTRICITY                            $26,000
CONTRACTUAL SERVICES        2016   BUDGETED    HEAT                                      $650
OTHER INSURANCE & BONDS               $3,497   WATER / SEWER                           $7,100
CONSULTING FEES                         $900
CONTRACTUAL SERVICES                 $86,162                              TOTAL      $64,941
AQUATIC NUISANCE                      $3,348   LAUNCH RAMP BUDGET          2016    BUDGETED
PRINTING                                $600   CONTRACTUAL SERVICES                   $10,500
ADVERTISING                             $500   SALARY                                  $1,000
Harbor Twn Slip Mnt Fees              $2,000   MAINTENANCE                             $1,000
Pigeon Key Slip Mnt Fees                                                  TOTAL       $12,500
INDIRECT COST                         $5,549
copy machine                            $300   CIP EXPENSES                2016    BUDGETED
                                               CRITICAL INFRUSTRUCTURE
                                               REPAIRS//EQUIPMENT
                                               PURCHASES // T-DOCK
VEHICLE RENTAL                        $9,830   ANNUAL REPAIR COSTS                    $22,300
CITY SERVICES FEE                    $11,612   DOCKS FOR GRAND TRUNK        2017      $21,540
BANK CHARGES                          $1,400                              TOTAL       $43,840
                                                                          ANNUAL
TELEPHONE                             $2,500                              TO TAL    $194,923
ELECTRICITY                          $26,000
HEAT                                    $650
WATER / SEWER                         $7,100

                           TOTAL    $64,941
                     MARINA CAPITAL IMPROVEMENT PLAN

Capital Improvement Plan in order of priority
HARTSHORN MARINA

Upgrade or new Marina main building (multi-functional)             $500,000
Parking Lot Lighting                                               $150,000
Restroom Facilities with storage                                   $250,000
Picnic Shelter                                                     $100,000
Picnic Tables                                                       $25,000
Grills
Utilities                                                          $100,000
Paving                                                             $200,000
Boat Docks-Replace/Upgrade T-Dock, Mixed Seasonal/
Transient (or Trans) Slips                                         $600,000
Fish Cleaning Station                                               $75,000

Dingy Launch Ramp (2)                                               $60,000
                                                      TOTAL      $2,300,000
GRAND TRUNK LAUNCH RAMP
Parking lot paving                                                 $200,000
Parking lot lights                                                 $150,000
Restroom Facilities with storage                                   $500,000
Picnic Shelter(s)                                                  $100,000
Grills
Picnic Tables                                                       $25,000
Utilities                                                          $125,000
Fish cleaning station                                               $75,000
Launch Ramp Improvements                                           $150,000
                                                        TOTAL    $1,325,000
FISHERMANS LANDING LAUNCH RAMP
Parking lot repairs                                                $120,000
Restroom Facility with storage                                     $200,000
Utilities                                                            $75,000
Launch Ramp Improvements                                           $200,000
                                                       TOTAL      $595,000
                                                GRAND TOTAL     $4,220,000
Dredging

Dredging of the main Hartshorn basin, small boat basin, Cottage Grove and Grand Trunk
launch ramps occurred in the spring of 2013. State of Michigan emergency dredging funds
were allocated for most the expense.

The contract for Hartshorn Marina(s) and Cottage Grove stipulated that the city of
Muskegon would store or dispose of analytically determined clean spoils in the city
materials storage area.

The 5000 c/y removed from Grand Trunk was disposed of by the contractor.


                                  DREDGING
                 NAME                   QTY YDS LOCAL DISPOSAL
                 HARTSHORN MARINA           750   100%
                 COTTAGE GROVE LAUNCH      2000   100%
                 SMALL BOAT BASIN          1600   100%
                 SMALL BOAT BASIN          5000     0%
                                  Total    9350

Recent dredging of the small boat basin, and areas of the main harbor, combined with
high water levels, negate the foreseen necessity of dredging within the respective
historical window of fifteen years.

Annual Maintenance Schedule

Fall: Marina staff completes cleaning and winterizing the main bath house facility and
irrigation system before November 1. Seasonal “No Wake” and other informational buoys,
and channel markers, are pulled from the water around the main marina, cleaned and
stored. Picnic tables are services and stored, and dock boxes are cleaned and secured for
winter weather. De-Icing pumps and air lines are checked for problems.

Launch docks are also pulled from the water by November 1.

Winter: The limited staff works on off-season maintenance tasks, including picnic table
repair and staining, and snow and ice control for paved areas of the marina and launch
ramps. The de-icing system is checked weekly by the Harbor Master.

Spring: Marina aides begin maintenance work the first week of April in anticipation for the
marina opening April 15. De-icing pumps are shut off and serviced, utilities are turned on
and tested, and building and grounds maintenance begins. Channel markers and fairway
buoys are also deployed, as are range-lights and entrance lights.

Launch ramp docks re-installed no later than May 1.

Summer: The marina is open seven days a week between Memorial Day and Labor Day
weekends. Summer office hours assign seven marina aides to a three-shift rotation
between 8 AM and 6 PM during the week and to 8PM on weekends. Grounds and building
maintenance is performed daily; bathrooms and showers are cleaned hourly, and trash is
removed from receptacles once per shift.

Other summer maintenance tasks include underground utility and storm water system/out-
fall repairs, irrigation lines, tree trimming and removal, concrete sidewalk replacement,
landscaping, power washing dock boxes or buildings, and pavilion and docks repairs.
Repairs to the marina office and “T-Dock” are the most time-consuming and expensive
summer maintenance projects.

Marketing Plan

The marina shares advertising resources with “Fricano’s On the Lake” for marketing of
both facilities. Space is also purchased on maps and brochures printed by the Muskegon
County Visitors Bureau, and advertising via the city of Muskegon web page.

Linear dock space reserved as “Shoppers Docks” promote the marina while encouraging
shopping and dining at near-by venues.

Annual events in and around the marina, including Muskegon Rebel Road bike event, and
the Muskegon Irish Festival, boost transient numbers and promote sales.
COMMISSION MEETING DATE: February 28, 2017

TO:           Honorable Mayor and Commissioners

FROM:         Jeffrey Lewis, Director of Public Safety

RE:           Concurrence with the Housing Board of Appeals Notice and Order to Demolish.
              Sixteen (16) Residential Structures


SUMMARY OF REQUEST: This is to request that the City Commission Concur with the
findings of the Housing Board of Appeals that the following structures are unsafe, substandard, a
public nuisance and that they be demolished:

                      Address:                 State Equalized Value
                1) 862 Stevens             $13,500 (2015) & $0 (2016)
                2) 139 Myrtle              $9,800 (2015) & $0 (2016)
                3) 325 Iona                $8,100 (2015) & $0 (2016)
                4) 333 Catherine           $12,500 (2015) & $0 (2016)
                5) 430 Allen               $10,800 (2015) & $0 (2016)
                6) 452 Amity               $16,300 (2015) & $0 (2016)
                7) 1773 Superior           $14,500 (2015) & $0 (2016)
                8) 367 E Holbrook                         $22,300 (2016)
                9) 1725 Wood                              $11,400 (2016)
                10) 1617 Smith                            $19,000 (2016)
                11) 252 E Isabella                        $12,500 (2016)
                12) 618 Catawba                           $14,300 (2016)
                13) 748 Catherine                         $13,700 (2016)
                14) 501 E Apple                           $22,300 (2016)
                15) 629 Allen                             $14,500 (2016)
                16) 750 Amity                             $20,000 (2016)

The properties are owned by the Muskegon County Land Bank and/or the Muskegon County
Treasurer (which will be deeded to the Muskegon County Land Bank as part of the Hardest Hit 2
Blight Fight Grant that they were awarded). The properties with $0 SEV for 2016 has the SEV
from 2015 included as those had been tax foreclosed in 2015 with the remainder being
foreclosed in 2016.

Staff Correspondence: On 1/5/2017 the HBA declared the structure substandard and dangerous.

Financial Impact:     None

Budget action required:      None

Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish.
   1) 862 Stevens:




Front                                  Roofing area rotted (multiple areas).




Rotted/exposed wood & peeling paint.   Foundation has cracks & missing mortar.




Foundation is bowing.                  Front porch-wood exposed & rotted.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                 862 Stevens St

Exterior Inspection noted:

House:
   1.     Roof is totally deteriorated - must be replaced.
   2.     Siding is loose or falling off.
   3.     Has broken siding.
   4.     Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
          Surface must be scraped prior to applying any water -resistant paint or waterproof finish.
    5.    Post or walls are deteriorated.
    6.    Roof over front porch removed – Exposed to weather.
    7.    Rotted, exposed would throughout.
    8.    Front porch has rotted/exposed/untreated wood that is deteriorated.
    9.    Foundation walls have missing mortar or open cracks.
    10.   Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    11.   Foundation is deteriorated.
    12.   Some foundation areas are missing.
    13.   Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
          from weather by properly applied water-resistant paint or waterproof finish.
    14.   Window is not weathertight and in good repair.
    15.   Window trim is broken or missing.
    16.   Window has glazing that is missing or deteriorated.
    17.   Window(s) are painted shut and are needed for egress or ventilation-make windows operable.
    18.   Operable window(s) does/do not have a screen - - must cover the complete bottom sash from
          April 30th thru September 30th.
    19.   Storm door does not operate properly.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   2) 139 Myrtle:




Front.                   Rotted/missing siding–throughout exterior.




Rotted window sealing.   Holes in siding throughout.




Hole in foundation.      Roofing is damaged.
Rear of structure – deterioration.

                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                 139 Myrtle Ave

Exterior Inspection noted:

    1)  Antenna fell on roof causing Furnace stack over leaving roof open to weather.
    2)  Has eve boards that are rotten or missing
    3)  Siding has holes in it or is rotted or missing.
    4)  Siding is loose or falling off
    5)  Has broken siding
    6)  Siding corners are missing
    7)  Has trim that has holes in it or is rotten or missing.
    8)  Has peeling paint that needs to be scraped and needs to be protected from weather with
        properly applied water-resistant paint or waterproof finish.
    9) Concrete steps are deteriorated ( In back)
    10) Foundation walls have missing mortar or open cracks.
    11) Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    12) Windows are not weathertight and in good repair.
    13) Operable window(s) does/do not have a screen—must cover the complete bottom sash
        from April30th thru September 30.
    14) Window has glazing that is missing or deteriorated.
    15) Window is closed off and material used does blend with siding.
    16) Doors are boarded
This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   3) 325 Iona:




Front.                                  Foundation bowing.




Foundation-missing mortar throughout.   Foundation bowing.




Holes in wood & siding.                 Roof deteriorated throughout.
Windows-rotted wood throughout.                   Interior.




Interior                                          Interior.

                      CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                         933 TERRACE ST STE 202, MUSKEGON, MI 49440
                           (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                DANGEROUS BUILDING REPORT

                                        325 Iona Ave

Exterior Inspection noted:

   1.  Has broken siding.
   2.  Has aluminum siding that is loose, falling off or is missing.
   3.  Steps have concrete or block walls on the sides that are deteriorated.
   4.  Foundation walls have missing mortar or open cracks.
   5.  Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
   6.  Window is not weathertight and in good repair.
   7.  Has eave boards that are rotted or missing.
   8.  Window trim is broken or missing.
   9.  Operable window(s) does/do not have a screen - - must cover the complete bottom sash
       from April 30th thru September 30th.
   10. Window has glazing that is missing or deteriorated.
   11. Door is broken or missing. Boarded up.
   12. Door glass cracked or broken.
    13. Interior walls.
    14. Wall(s) has/have a hole(s) or large cracks in it.
    15. Walls have peeling paint.
    16. Wall covering is not secure.
    17. Wall studs or wall covering is rotted or sagging.
    18. Ceiling has a hole or holes or large cracks in it.
    19. Ceiling has peeling paint.
    20. Floor covering is missing.
    21. Rear roof is deteriorated.
This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.




10/21/2013

PROGRESSIVE HOLDING CO LLC
4900 FRUIT RIDGE
GRAND RAPIDS, MI 49544

RE: 325 IONA AVE

DANGEROUS BUILDING INTERIOR INSPECTION

The SAFEbuilt Building Dept. conducted an interior inspection at 325 IONA AVE to determine what was
needed to bring the building up to code and be able to issue a certificate of occupancy.

Below are the inspection results:
    1. Must fix sagging and broken foundation
    2. Must level and fix floor joists
    3. Must replace all floor coverings
    4. Must install new windows through the majority of the dwelling
    5. Electric service must be replaced, updated to code
    6. Must fix the siding and paint all exterior wood
    7. Must insulate dwelling
    8. Must install new furnace and water heater
    9. Must install new plumbing throughout dwelling
    10. Must install smoke alarms throughout dwelling
    11. Must install new kitchen
    12. Must install complete bathroom
    13. Stairs must be built to code
    14. Center wall is bowed and must be fixed
    15. Must remove all the bad plaster and drywall
    16. Must have a licensed contractor do the work
    17. Demo work was started without a permit

Kirk Briggs
Building Official; SAFEbuilt/City of Muskegon
   4) 333 Catherine:




Front.                                     Side/rear missing siding.




Deteriorated/rotted wood at front porch.   Deteriorated roof.




Deteriorated roof.                         Siding has cracks throughout.
Roofing deteriorated. Open to elements.

                      CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                         933 TERRACE ST STE 202, MUSKEGON, MI 49440
                           (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                DANGEROUS BUILDING REPORT

                                      333 Catherine Ave

Exterior Inspection noted:

   1.  Roof is totally deteriorated - must be replaced.
   2.  Has eave boards that are rotted or missing.
   3.  Siding has holes in it or is rotted or missing.
   4.  Siding is loose or falling off.
   5.  Siding corners are missing.
   6.  Siding has peeling paint--and is not protected from weather by a properly
       applied water resistant paint or finish. This must be properly scraped before painting.
   7. Is not protected from weather by a properly applied water-resistant paint or waterproof
       finish. Surface must be scraped prior to applying any water -resistant paint or waterproof
       finish.
   8. Floor is deteriorated.(Back)
   9. Steps are deteriorated or missing-when installing new, steps must have 36" landing at
       the top if entering door.
   10. Stairway with more than 4 risers does not have a handrail on the open sides.
       Handrail is missing.
   11. Foundation walls have missing mortar or open cracks.
   12. Trim is broken, missing or incomplete.
   13. Trim is rotted.
   14. Exterior trim has peeling paint that needs to be properly scraped and needs to be
       protected from weather by properly applied water-resistant paint or waterproof finish.
   15. Window is not weathertight and in good repair.
   16. Window(s) has/have broken or cracked glass.
   17. Window trim is broken or missing.
   18. Window sill is broken, missing or rotted.
   19. Operable window(s) does/do not have a screen - - must cover the complete         bottom
       sash from April 30th thru September 30th.
   20. Window frame is rotted.
    21. Window has glazing that is missing or deteriorated.
    22. Door trim is broken or incomplete.
    23. Door hardware is broken, missing or incomplete.
    24. Door glass cracked or broken.
This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   5) 430 Allen:




Front                                      Siding missing-wood exposed.




Rotted eaves.                              Foundation cracked & caving in.




Roofing is buckling up & boarded windows   Wood under door leading into house is
leave exposure to the interior.            rotted & exposed to weather.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                  430 Allen Ave

Exterior Inspection noted:

House:
   1.     Roof has some shingles or parts of shingles missing
   2.     Roof has shingles that are deteriorated and need replacing.
   3.     Has eave boards that are rotted or missing.
   4.     Has aluminum fascia that is loose, falling off or missing.
   5.     Siding has holes in it or is rotted or missing.
   6.     Siding is loose or falling off.
   7.     Floor is deteriorated.(Stoop)
   8.     Ceiling is deteriorated or missing. (Over side door)
   9.     Storm door does not operate properly. (Side Door)
   10.    Door has broken or missing panels.(Side Door)
   11.    Concrete steps are deteriorated. (Front Steps)
   12.    Concrete has holes and/or is deteriorated.(Front Steps)
   13.    Foundation walls have missing mortar or open cracks.
   14.    Block walls have joints where the mortar is missing.
   15.    Trim is loose.
   16.    Window is not weathertight and in good repair.
   17.    Window screen(s) is/are torn or damaged.
   18.    Window has glazing that is missing or deteriorated.
   19.    Operable window(s) does/do not have a screen - - must cover the complete bottom sash from
          April 30th thru September 30th.
    20.   Storm door does not operate properly.
    21.   Door does not have a screen.
    22.   Door will not latch or shut.
    23.   Screen door is missing.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   6) 452 Amity:




Front.                             Rotted faschia/eaves.




Wood rotting under the roof.       Fascia/eaves missing/rotted.




Foundation/siding deteriorating.   Deteriorated roofing & rotted wood under.
Foundation cracked/deteriorated.   Deteriorated roofing.




Rotted wood/foundation.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                  452 Amity Ave

Exterior Inspection noted:

House:

    1.    Roof has shingles that are deteriorated and need replacing.
    2.    Side of the roof has rotted or missing roof boards.
    3.    Has eave boards that are rotted or missing.
    4.    Siding has holes in it or is rotted or missing.
    5.    Siding is loose or falling off.
    6.    Has broken siding.
    7.    Has trim that has holes in it or is rotted or missing.
    8.    Has aluminum siding that is loose, falling off or is missing.
    9.    Foundation walls have missing mortar or open cracks.
    10.   Foundation walls have missing brick or block.
    11.   Foundation walls have peeling paint. Paint must be properly scraped prior to painting. Block
          walls have joints where the mortar is missing.
    12.   Trim is broken, missing or incomplete.
    13.   Trim is loose.
    14.   Trim is rotted.
    15.   Trim is bare wood - must be painted, varnished or sealed.
    16.   Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
          from weather by properly applied water-resistant paint or waterproof finish. Window is not
          weathertight and in good repair.
    17.   Window sill is broken, missing or rotted.
    18.   Operable window(s) does/do not have a screen - - must cover the complete bottom sash from
          April 30th thru September 30th.
    19.   Door hardware is broken, missing or incomplete.
    20.   Door has a hasp - MUST BE REMOVED.
    21.   Screen door is missing.
    22.   Storm door does not operate properly.(Back Door)
    23.   Door hardware is loose. (Back Door)
    24.   Door frame is broken or loose. (Back Door)
    25.   Door does not fit tight-install weatherseal.(Back Door)

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   7) 1773 Superior:




Front.                         Foundation buckling.




Eaves/faschia rotted & holy.   Wood exposed due to peeling paint.




Garage.                        Interior.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                1773 Superior St

Exterior Inspection noted:

Garages/Sheds:
   1. Is open and not secure.
   2. Overhead, sliding, or swing door is broken or missing parts so it may not work properly.

House:
   1.     Roof has some shingles or parts of shingles missing.
   2.     Roof has shingles that are deteriorated and need replacing.
   3.     Roof is bowed.
   4.     Roof is moss covered in many areas.
   5.     Has eave boards that are rotted or missing.
   6.     Has peeling paint that needs to be scraped and needs to be protected from weather by properly
          applied water-resistant paint or waterproof finish.
    7.    Guardrail is not in good repair.
    8.    Foundation walls have missing mortar or open cracks.
    9.    Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    10.   Foundation walls are bowing.
    11.   Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
          from weather by properly applied water-resistant paint or waterproof finish.
    12.   Window is not weathertight and in good repair
    13.   Window(s) has/have broken or cracked glass.
    14.   Window(s) are painted shut and are needed for egress or ventilation-make windows operable.
    15.   Window has glazing that is missing or deteriorated.
    16.   Operable window(s) does/do not have a screen - - must cover the complete bottom sash from
          April 30th thru September 30th.
    17.   Door glass cracked or broken.
    18.   Door does not have a screen.
    19.   Door has a hasp/padlock - MUST BE REMOVED.
    20.   Wood siding has areas where it is broken/cracked/missing/has holes in it.
    21.   Ceiling is peeling apart & falling.
    22.   There is a posting on the home from the Fire Marshall.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   8) 367 E Holbrook:




Front.                               Basement window-foundation deteriorated.




Foundation cracked/missing mortar.   Roof bowing & deteriorated.




Roof bowing & deteriorated.          Rotted wood in fascia & eaves.
Exposed/rotted wood.                       Windows are not sealed & wood rotted.




Window frames-rotted & peeling paint.      Garage wall is bowing out.




Garage has exposed wood & peeling paint.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT
                                           367 E. Holbrook Ave

Exterior Inspection noted:
Garages/Sheds:
   1. Overhead, sliding, or swing door is broken or missing parts so it may not work properly.
       Boarded up.
   2. Roof covered with snow.
   3. Accessory structure is not maintained in good repair.
   4. Has peeling paint that needs to be scraped and needs to be protected from weather by
       properly applied water-resistant paint or waterproof finish.
   5. Window is not weathertight and in good repair.
   6. Siding has holes in it or is rotted or missing.
House:
   1. Roof is covered with snow
   2. Side of the roof has rotted or missing roof boards.
   3. Has eave boards that are rotted or missing.
   4. Siding has holes in it or is rotted or missing.
   5. Siding corners are missing.
   6. Concrete steps are deteriorated.
   7. Foundation walls have missing mortar or open cracks.
   8. Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
       Trim is broken, missing or incomplete.
   9. Trim is loose.
   10. Trim is rotted.
   11. Exterior trim has peeling paint that needs to be properly scraped and needs to be
       protected from weather by properly applied water-resistant paint or waterproof finish.
       Window is not weathertight and in good repair.
   12. Window(s) has/have broken or cracked glass.
   13. Window trim is broken or missing.
   14. Window sill is broken, missing or rotted.
   15. Operable window(s) does/do not have a screen - - must cover the complete bottom sash
       from April 30th thru September 30th.
   16. Window screen(s) is/are torn or damaged.
   17. Window frame is rotted.
   18. Window has glazing that is missing or deteriorated.
   19. Door is broken or missing.
   20. Door does not fit tight-install weatherseal.
   21. Screen door screen is ripped or missing.
This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   9) 1725 Wood:




Front                                        Foundation missing mortar.




Rotted/holy wood in eaves/fascia.            Rotted/exposed wood around windows.




Exposed wood under roofing of front porch.   Siding coming up around the structure.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                   1725 Wood

Exterior Inspection noted:

Garages/Sheds:
   1. Side of the roof has rotted or missing roof boards.
   2. Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
       Surface must be scraped prior to applying any water -resistant paint or waterproof finish.

House:
   1.     Side of the roof has rotted or missing roof boards.
   2.     Has eave boards that are rotted/missing/holes throughout.
   3.     Roofing materials are coming up.
   4.     Roofing is bowing.
   5.     Front steps & deck are completely deteriorated.
   6.     Window framing is not protected from weather by a properly applied water-resistant paint or
          waterproof finish. Surface must be scraped prior to applying any water -resistant paint or
          waterproof finish.
    7.    Wood around the windows is rotting/holy throughout.
    8.    Porch Ceiling is deteriorated or missing.
    9.    Foundation walls have missing mortar or open cracks.
    10.   Non-exterior wood is used for the front porch area & is not protected & is rotted.
    11.   Front porch framing is rotting & not supporting the roofing area above as well.
    12.   Siding is coming up in many areas of the home.
    13.   Trees are growing against the house/foundation causing deterioration.
    14.   An exterior wood door is not made of the proper materials & is rotted/deteriorating.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   10) 1617 Smith:




Front                                Rotted/broken eaves & faschia.




Foundation-holes/missing
mortar/deteriorated.                 Wood exposed & roofing area deteriorated.




Wood exposed/rotted/peeling paint.   Roofing is deteriorated.
Garage deteriorated.                                          Garage-side wood is missing/falling off.

                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)
                                      DANGEROUS BUILDING REPORT
                                             1617 Smith St

Exterior Inspection noted:
Garages/Sheds:
    1. Is open and not secure.
    2. Overhead, sliding, or swing door is broken or missing parts so it may not work properly.
    3. Accessory structure is not maintained in good repair.
House:
    1. Roof is totally deteriorated - must be replaced.(Back of House)
    2. Side of the roof has rotted or missing roof boards.
    3. Has eave boards that are rotted or missing.
    4. Has broken siding.
    5. Siding has peeling paint--and is not protected from weather by a properly applied water
        resistant paint or finish. This must be properly scraped before painting.
    6. Has trim that has holes in it or is rotted or missing
    7. Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
        Surface must be scraped prior to applying any water -resistant paint or waterproof finish.
    8. Roof over stoop needs to be replaced
    9. Foundation walls have missing mortar or open cracks.
    10. Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    11. Trim is broken, missing or incomplete.
    12. Trim is loose.
    13. Operable window(s) does/do not have a screen - - must cover the complete bottom sash from
        April 30th thru September 30th.
    14. Window(s) has/have broken or cracked glass.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.
BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   11) 252 E Isabella:




Front of home-roof failing.   Front porch interior roof falling.




Roofing has no shingles.      Side porch bricks deteriorated.




Deteriorated steps.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                 252 E Isabella:

Exterior Inspection noted:

    1. Where repairs to existing roof are made, materials and color must blend with balance of
        roof.
    2. Roof has some shingles or parts of shingles missing.
    3. Roof has shingles that are deteriorated and need replacing.
    4. Roof leaks. (Blue Tarp)
    5. Has eave boards that are rotted or missing.
    6. Has broken siding.
    7. Siding has holes in it or is rotted or missing.
    8. Porch Floor is deteriorated.
    9. Post or walls are deteriorated.
    10. Steps are deteriorated or missing-when installing new, steps must have 36" landing at
        the top if entering door.
    11. Has unguarded side more than 30" high from ground or floor, need 36" guardrail with
        ballisters no further apart than 4".
    12. Stairway with more than 4 risers does not have a handrail on the open sides.
    13. Handrail is not in good repair.
    14. Ceiling is deteriorated or missing.
    15. Handrail is missing.
    16. Concrete has holes and/or is deteriorated.
    17. Porch floor has bare wood-is not protected from the weather by a properly applied water
        resistant paint or finish.
    18. Rubbish, garbage, appliances or household furniture stored on open porch.
    19. Trim is broken, missing or incomplete.
    20. Trim is loose.
    21. Trim is bare wood - must be painted, varnished or sealed.
    22. Exterior trim has peeling paint that needs to be properly scraped and needs to be
        protected from weather by properly applied water-resistant paint or waterproof finish.
        Window(s) has/have broken or cracked glass.
    23. Window trim is broken or missing.
    24. Window is closed off and the material used does not blend with the siding.
    25. Screen door is missing.
    26. Door threshold is broken, rotted or missing.
    27. Does not have privacy door.
This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   12) 618 Catawba:




Front.                                  Warped roof.




Rotted/holy eaves/fascia.               Warped roof.




Rotted/exposed wood above front door.   Foundation cracked/bowing.
Wood exposed where siding is falling.   Many areas appear to have new windows.
                                        No permits were found. Wood rotting.




Shed
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                618 Catawba Ave

Exterior Inspection noted:

    1.    Has eave boards that are rotted or missing.
    2.    Siding has holes in it or is rotted or missing.
    3.    Siding is loose or falling off.
    4.    Has broken siding.
    5.    Has trim that has holes in it or is rotted or missing.
    6.    Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
          Surface must be scraped prior to applying any water -resistant paint or waterproof finish.
    7.    Stairway with more than 4 risers does not have a handrail on the open sides.
    8.    Concrete has holes and/or is deteriorated.
    9.    Foundation walls have missing mortar or open cracks.
    10.   Foundation walls have peeling paint. Paint must be properly scraped prior to painting
    11.   Trim is broken, missing or incomplete.
    12.   Trim is bare wood - must be painted, varnished or sealed.
    13.   Trim is rotted.
    14.   Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
          from weather by properly applied water-resistant paint or waterproof finish. Window is not
          weathertight and in good repair.
    15.   Window(s) has/have broken or cracked glass.
    16.   Window trim is broken or missing.
    17.   Window sill is broken, missing or rotted.
    18.   Operable window(s) does/do not have a screen - - must cover the complete bottom sash from
          April 30th thru September 30th.
    19.   Window screen(s) is/are torn or damaged.
    20.   Window is closed off and the material used does not blend with the siding.
    21.   Window frame is rotted.
    22.   Window has glazing that is missing or deteriorated.
    23.   Door frame is broken or loose.
    24.   Door does not fit tight-install weatherseal.
    25.   Door has been closed off and the material used does not blend with the rest of the siding.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   13) 748 Catherine:




Front & sagging roof.                       Foundation-separating from doorway.




Foundation-cracked/deteriorated/buckling.   Holy wood in eaves/fascia.




Roofing deteriorated & falling off.         Garage.
Garage   Hole in roof of garage.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)
                                      DANGEROUS BUILDING REPORT
                                           748 Catherine Ave
Exterior Inspection noted:
Garages/Sheds:
    1. Overhead, sliding, or swing door is broken or missing parts so it may not work properly.
    2. Is open and not secure.
    3. Roof leaks. Holes in roof.
    4. Roof is totally deteriorated - must be replaced.
    5. Rafters are broken or rotted.
House:
    1. Roof is not vented properly.
    2. Rafters are bowed and the roof is sagging. Roof rafters need bracing in the attic.
    3. Chimney does not have compliant/approved flashing.
    4. Has eave boards that are rotted or missing.
    5. Has broken siding.
    6. Siding has peeling paint--and is not protected from weather by a properly applied water
        resistant paint or finish. This must be properly scraped before painting.
    7. Has trim that has holes in it or is rotted or missing.
    8. Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
        Surface must be scraped prior to applying any water -resistant paint or waterproof finish.
    9. Floor is deteriorated.
    10. Porch floor has bare wood-is not protected from the weather by a properly applied water
        resistant paint or finish.
    11. Handrail is not in good repair. Not secure.
    12. Foundation walls have missing mortar or open cracks and is failing.
    13. Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    14. Trim is broken, missing, incomplete, loose, rotted.
    15. Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
        from weather by properly applied water-resistant paint or waterproof finish.
    16. Window is not weathertight and in good repair.
    17. Window sash is broken, rotted or missing.
    18. Window(s) has/have broken or cracked glass.
    19. Window trim is broken or missing.
    20. Window screen(s) is/are torn or damaged.
    21. Window has glazing that is missing or deteriorated.
    22. Door does not fit tight-install weatherseal.
    23. Storm door does not operate properly.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   14) 501 E Apple:




Front-siding falling off throughout.   Window improperly sealed & wood rotting.




Eaves/fascia missing/rotted.           Trees growing from foundation-damaged.




Foundation has holes/cracks/bowing.
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                501 E. Apple Ave

Exterior Inspection noted:

House:
   1. Siding is loose or falling off.
   2. Most of the siding that is loose, falling off or is missing.
   3. Has peeling paint that needs to be scraped and needs to be protected from weather by properly
       applied water-resistant paint or waterproof finish.
   4. Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
       from weather by properly applied water-resistant paint or waterproof finish. Concrete steps are
       deteriorated.
   5. Foundation walls have missing mortar or open cracks.
   6. Window(s) has/have broken or cracked glass.
   7. Many windows have been boarded.
   8. Window screen(s) is/are torn or damaged.
   9. Rotted wood throughout the exterior.
   10. Screen door is missing.
   11. Prior owner obtained permit to replace broken/frozen pipes with no inspections or completion
       of the permit.
   12. Fascia missing.
   13. Insulation showing.
   14. Trees growing through the foundation areas.
   15. Wood at the concrete steps are rotted under the door area.
   16. Interior ceiling is deteriorated/missing.
   17. Wood is rotted where siding is missing.
   18. Roofing materials deteriorated.
   19. Broken windows have left the interior of the structure open to the elements.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   15) 629 Allen:




Front-deteriorating foundation.   Large cracks in foundation.




Rear of structure.                Deteriorated roofing.




Rotted/holy eaves/faschia.        Rotted wood under roofing.
Roof deteriorated above porch.                 Roof is deteriorated/missing shingles
                                               throughout.




Foundation deteriorated-wood siding falling.   Garage

Pictures of work performed without permits:
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                  629 Allen Ave

Exterior Inspection noted:

Garages/Sheds:
   1. Overhead, sliding, or swing door is broken or missing parts so it may not work properly.
   2. Boarded up.
   3. Rooted wood at the roofing area.
   4. Roofing is deteriorated.
   5. Critters living in the rotted wood of the roof area.

House:
   1.     Roof is deteriorated.
   2.     Wood supporting roofing areas is rotted and warped throughout.
   3.     Shingles are falling from the roof.
   4.     Porch roof is deteriorating & moss covered.
   5.     Windows and doors boarded up.
   6.     Side of the roof has rotted or missing roof boards.
   7.     Has eave boards that are rotted or missing.
   8.     Siding has holes in it or is rotted or missing.
   9.     Has trim that has holes in it or is rotted or missing.
   10.    Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
          Surface must be scraped prior to applying any water -resistant paint or waterproof finish.
    11.   Floor is deteriorated.
    12.   Porch floor has bare wood-is not protected from the weather by a properly applied water
          resistant paint or finish.
    13.   Rubbish, garbage, appliances or household furniture stored on open porch.
    14.   Foundation walls have missing mortar or open cracks.
    15.   Foundation is gone at the rear of the home.
    16.   Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    17.   Furnace & Water heater were installed without proper permits nor by a licensed contractor.
    18.   Many boards on the porch have peeling paint that is causing the wood to deteriorate due to
          exposure to the elements.
    19.   Wood or siding is deteriorated & allowing exposure under it.
    20.   Foundation has areas that is bowing.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
   16) 750 Amity:




Front.                                  Peeling paint/rotted wood.




Exposed wood siding/deterioration.      Roof deteriorating.




Cracked foundation. Boarded side door
with no steps.                          Foundation buckling/deteriorating.
Cracked foundation.                   Garage roof rotted.




Interior garage holes in roof/sides
                           CITY OF MUSKEGON CODE COMPLIANCE DEPARTMENT
                              933 TERRACE ST STE 202, MUSKEGON, MI 49440
                                (231) 724-6702 (Office) (231) 724-6790 (Fax)

                                        DANGEROUS BUILDING REPORT

                                                  750 Amity Ave

Exterior Inspection noted:

Garages/Sheds:

    1.    Overhead, sliding, or swing door is broken or missing parts so it may not work properly.
    2.    Is open and not secure.
    3.    Roof is totally deteriorated - must be replaced.
    4.    Rafters are bowed and the roof is sagging. Roof rafters need bracing in the attic.
    5.    Peeling paint allowing wood to be exposed & rotting.
    6.    Holes throughout where wood has rotted or fallen.
    7.    Roofing is coming up (wood & shingles).

House:
   1.     Roof is totally deteriorated - must be replaced.
   2.     Has eave boards that are rotted or missing.
   3.     Siding has holes in it or is rotted or missing.
   4.     Has broken siding.
   5.     Opening in the wall has been closed off with material that does not blend with the rest of the
          structure.
    6.    Is not protected from weather by a properly applied water-resistant paint or waterproof finish.
          Surface must be scraped prior to applying any water -resistant paint or waterproof finish.
    7.    Foundation walls have missing mortar or open cracks.
    8.    Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
    9.    Foundation is bowed.
    10.   Trim is broken, missing or incomplete.
    11.   Trim is rotted.
    12.   Trim is bare wood - must be painted, varnished or sealed.
    13.   Exterior trim has peeling paint that needs to be properly scraped and needs to be protected
          from weather by properly applied water-resistant paint or waterproof finish
    14.   Window is not weathertight and in good repair.
    15.   Window has glazing that is missing or deteriorated
    16.   Window(s) has/have broken or cracked glass.
    17.   Doors boarded up
    18.   Awning on front of house broken and hanging down.

This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE STRUCTURE
MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF
THE MUSKEGON CITY CODE.
              Commission Meeting Date: February 28, 2017

Date:                 February 21, 2017
To:                   Honorable Mayor & City Commission
From:                 Planning & Economic Development Department
RE:                   Sale of a Non-Buildable Vacant Lot in the Port
                      City Industrial Park


SUMMARY OF REQUEST:
To approve the land purchase agreement for the sale of the unaddressed property to
Marathon Petroleum Company LP. In order to meet Michigan Department of Environmental
Quality (MDEQ) requirments, the company needs to perform wetland mitigation on 16.1
acres of land for activities pertaining to another site outside of the City. The City has over 57
acres of undevelopable land in the Industrial Park and is able to carve out 28.4 acres to sell.
The property is considered unbuildable because it is located under the ordinary high water
mark and is considered wetlands. The company has agreed to the purchase price of
$100,000. If the purchase agreement is approved, the company will have 45 days to secure
final approval by senior management, upon which this offer is contingent. Upon final
approval by the company, an earnest money deposit of $10,000 will be placed in escrow
and they will begin all necessary investigations such as survey, title and environmental.
Closing will also be contingent upon acceptance/approval of the site by the MDEQ and
completion by the City of the parcel split/combination.

FINANCIAL IMPACT:
The sale of this lot will generate additional tax revenue for the City as the property will be put
back on the City’s tax rolls.

BUDGET ACTION REQUIRED:
None

STAFF RECOMMENDATION:
To authorize the Mayor and City Clerk to sign the Land Purchase Agreement.
                                            Resolution No. _______

                                   MUSKEGON CITY COMMISSION



RESOLUTION APPROVING THE SALE OF THE UNADDRESSED LOT (EXHIBIT A) FOR $100,000.

WHEREAS, Marathon Petroleum Company LP, a Delaware limited partnership, will be allowed to purchase the
parcel for $100,000; and

WHEREAS, the City will be responsible for providing the lot split; 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 listed in Exhibit A be sold to Marathon Petroleum Company
LP, a Delaware limited partnership, for $100,000.

Adopted this 28th day of February, 2017.



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 February 22,
2017.



                                                                           By: ________________________
                                                                           Ann Meisch, MMC
                                                                           City Clerk




                                                                                                  2
EXHIBIT "A" (Legal Description)




                                  3
                   Commission Meeting Date: February 28, 2017




Date:         February 23, 2017
To:            Honorable Mayor and City Commissioners
From:         Finance Director
RE:            Second Quarter 2016-17 Budget Reforecast



SUMMARY OF REQUEST: At this time staff is transmitting the Second
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 second quarter proposed adjustments to
the budget are as follows:

   •    General Fund revenues are reforecast to be $284,000 lower than the first
        quarter budget reforecast, largely due to lower projected income tax
        revenues.

   •    General Fund expenditures are reforecast to be $86,000 higher than the first
        quarter budget reforecast.

   •    There is some refinement of the capital projects budget resulting in an overall
        net decrease of $445,000 from the first quarter budget reforecast due to the
        removal of $500,000 for the marina docks and building improvements project
        in the Marina Fund. However, in the General Fund $25,000 has been added
        for roof repairs at LC Walker Arena and $30,000 has been added for a project
        to wash and seal the City Hall building.

BUDGET ACTION REQUIRED: City commission approval of this reforecast will
formally amend the City’s 2016-17 budget.

STAFF RECOMMENDATION: Approval.
2Q 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    $    25,753,994     $   26,105,976     $      5,989,675    $      (351,982)


  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                                          -           379,500            417,000               (37,500)           (37,500)


  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              2,500                    -              3,571              2,500


  9   Brownfield Authority Fund (Betten)                           (1,344,403)          137,700            158,000            (1,364,703)           (20,300)


  10 Brownfield Authority Fund (Former Mall)                          17,967            164,750            182,650                    67            (17,900)


  11 Tax Increment Finance Authority Fund                                454             39,300             34,000                 5,754              5,300


  12 Downtown Development Authority Debt Fund                        118,840            322,400            335,750               105,490            (13,350)


  13 Local Development Finance Authority III Fund (SZ)                21,030            449,090            449,425                20,695               (335)


  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            255,200            250,747               407,370              4,453


  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          7,553,250          7,552,239            3,380,703              1,011




       Total All Budgeted Funds                               $    18,393,600    $    66,817,662     $   67,879,732     $     17,331,530    $    (1,062,070)


      * Fund was to be closed out at the end of FY 2015-16.
2Q 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                                           15,951,000        61.9%
                              Licenses and Permits                             1,503,000        5.8%
                              Federal Grants                                      59,580        0.2%
                              State Grants                                       235,000        0.9%
                              State Shared Revenue                             4,002,925        15.5%
                              Other Charges                                    2,941,839        11.4%
                              Fines and Fees                                     380,000        1.5%
                              Other Revenue                                      452,000        1.8%
                              Other Financing Sources                            228,650        0.9%
                                                                              25,753,994        100.0%




              ESTIMATED REQUIREMENTS:
                              Customer Value Added Activities                 20,114,274         77.0%
                              Business Value Added Activities                  4,546,062         17.4%
                              Fixed Budget Items                               1,445,640         5.5%
                                                                              26,105,976        100.0%

              ESTIMATED FUND BALANCE AT END OF YEAR                                         $   5,989,675

                           OPERATING SURPLUS / (DEFICIT)                                    $    (351,982)


              * Six-month transition period to new fiscal year
2Q 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           2Q Reforecast    (Decrease) From
                                                                    Actual FY2015        Actual FY2016    Estimate FY2017       12/31/16              12/31/15                  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 and Special Assessments
           101-00000-4100   PROPERTY TAX                                 5,670,845            5,689,608         5,456,000            414,151               562,095                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            123,129               166,958                1,636,000                 -
           101-00000-4140   INCOME TAX                                   8,274,666            8,151,902         8,850,000          3,591,399             3,974,288                8,400,000          (450,000)
           101-00000-4161   SPECIAL ASSESSMENTS                                  -                    -           270,000             11,859                     -                  270,000                 -
                                                                    $   15,830,137 $         15,729,469 $      16,401,000 $        4,140,538 $           4,703,341 $             15,951,000 $        (450,000)

                            Licenses and permits
           101-00000-4202   BUSINESS LICENSES & PERMITS                     62,495               63,182            70,000             18,815                15,625                   70,000                -
           101-00000-4203   LIQUOR LICENSES & TAX REBATE                    53,986               43,010            50,000             34,874                35,358                   50,000                -
           101-00000-4204   CABLE TV LICENSES OR FEES                      369,965              372,117           350,000             92,188                90,473                  350,000                -
           101-00000-4205   HOUSING LICENSES                                (5,065)                 (50)                              (1,141)               (2,660)                                        -
           101-00000-4206   INSPECTION FEE                                     126                  162                                    -                   117                                         -
           101-00000-4207   CEMETERY-BURIAL PERMITS                         83,922               81,095            82,000             40,575                36,665                   82,000                -
           101-00000-4208   BUILDING PERMITS                               333,370              371,693           351,000            284,808               191,336                  426,000           75,000
           101-00000-4209   ELECTRICAL PERMITS                              88,524               84,912            78,000             52,742                43,306                   98,000           20,000
           101-00000-4210   PLUMBING PERMITS                                29,269               34,316            36,000             19,682                19,899                   36,000                -
           101-00000-4211   HEATING PERMITS                                 67,929               69,071            66,000             46,564                35,110                   76,000           10,000
           101-00000-4212   POLICE GUN REGISTRATION                             75                    -                                    -                     -                                         -
           101-00000-4213   RENTAL PROPERTY REGISTRATION                   150,716              152,268           160,000             64,026                70,032                  160,000                -
           101-00000-4221   VACANT BUILDING FEE                            117,258              165,589           150,000             28,670                96,188                  150,000                -
           101-00000-4224   TEMPORARY LIQUOR LICENSE                         9,150                5,780             5,000              1,855                 2,275                    5,000                -
                                                                    $    1,361,720 $          1,443,145 $       1,398,000 $          683,658 $             633,724 $              1,503,000 $        105,000

                            Federal grants
           101-00000-4300   FEDERAL GRANTS                                 84,296                72,521           124,580               8,476                        -               59,580           (65,000)
                                                                    $      84,296    $           72,521   $       124,580 $             8,476   $                    -   $           59,580 $         (65,000)

                            State grants
           101-00000-4400   STATE GRANTS                                   14,546                91,415            15,000             18,399                 7,621                   15,000                 -
           101-00000-4405   STATE REPLACEMENT REV FOR PPT                       -                64,536           220,000                  -                51,683                  220,000                 -
                                                                    $      14,546    $          155,951 $         235,000 $           18,399 $              59,304 $                235,000 $               -

                            State shared revenue
           101-00000-4502   STATE SALES TAX CONSTITUTIONAL               2,772,442            2,955,900         2,886,189            976,150               968,862                2,886,189                 -
           101-00000-4503   STATE CVTRS PAYMENTS                         1,116,736              930,614         1,116,736            372,244               372,244                1,116,736                 -
                                                                    $    3,889,178   $        3,886,514 $       4,002,925 $        1,348,394 $           1,341,106 $              4,002,925 $               -

                            Other charges for sales and services
           101-00000-4601   CITY SERVICE FEE FOR ENTERPRISE FUNDS               -               449,292           449,290            224,646               224,646                  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             21,637                19,723                   41,000                 -
           101-00000-4606   ADMINISTRATION FEES                           250,000               310,000           310,000            155,000               155,000                  310,000                 -
           101-00000-4607   REIMBURSEMENT ELECTIONS                        14,796                26,703                 -             18,013                13,706                        -                 -
           101-00000-4608   INDIRECT COST ALLOCATION                      958,040             1,025,618         1,010,456            505,228               512,809                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             52,657                37,274                   37,000                 -
2Q 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     2Q Reforecast    (Decrease) From
                                                                 Actual FY2015     Actual FY2016    Estimate FY2017       12/31/16           12/31/15            FY2017            Original
           101-00000-4612   CEMETERY SALE OF LOTS                       19,258             25,987            20,000             10,350             14,425             20,000                 -
           101-00000-4614   REIMBURSEMENT LOT CLEAN UP                  15,447              6,131             5,000              3,892              2,973              5,000                 -
           101-00000-4615   POLICE DEPARTMENT INCOME                   103,900             97,936            99,000             66,712             54,725            104,000             5,000
           101-00000-4617   FIRE DEPARTMENT INCOME                       2,110              4,413             4,500              6,560              3,630              4,500                 -
           101-00000-4619   MISC. SALES AND SERVICES                    16,651             17,635             1,500                 25                300              1,500                 -
           101-00000-4620   FIRE PROTECTION-STATE PROP                  80,227             81,250            81,000            115,820             81,250            116,000            35,000
           101-00000-4621   ZONING & ENCROACHMENT FEES                  11,680             11,962            12,000              7,790              8,232             12,000                 -
           101-00000-4622   MISC. CLERK FEES                             4,219             16,789             3,000                995             15,474              3,000                 -
           101-00000-4624   TAX ABATEMENT APPLICATION FEES               3,822                600             1,000              3,115                600              1,000                 -
           101-00000-4625   MISC. TREAS. FEES                           40,404             55,948            60,000             10,941             10,533             60,000                 -
           101-00000-4631   REIMBURSEMENT SCHOOL OFFICER                20,259             20,867            21,493             11,941             11,593             21,493                 -
           101-00000-4633   OBSOLETE PROPERTY FEES                           -              1,000                                1,870                  -                                    -
           101-00000-4634   PASSPORTS                                   12,025             27,199            40,000             23,237              8,740             40,000                 -
           101-00000-4635   START UP CHARGE/REFUSE                       6,765              8,633             7,000              3,630              3,960              7,000                 -
           101-00000-4636   REFUSE BAG & BULK SALES                     28,452             30,514            25,000             16,714             14,876             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              6,005              5,755             12,000                 -
           101-00000-4648   FALSE ALARM FEES/POLICE                     10,020              6,435            10,000              1,935              6,135              6,000            (4,000)
           101-00000-4649   CEMETERY-MISC. INCOME                       15,462             17,128            15,000             10,716              9,879             15,000                 -
           101-00000-4651   REIMBURSEMENT LOT MOWING                    18,185              9,728             7,000              6,621              5,233              7,000                 -
           101-00000-4652   MUSKEGON HEIGHTS ZONING                      4,900             11,095             6,000              4,200                  -              6,000                 -
           101-00000-4654   FIRE RESPONSE FEE                            6,500              7,000             5,000              2,000              3,500              5,000                 -
           101-00000-4656   SITE PLAN REVIEW                             4,600              8,300             5,000              3,400              4,900              5,000                 -
           101-00000-4657   COLUMBARIUM NICHE                            1,850                  -                                    -                  -                                    -
           101-00000-4658   IMPOUND FEES                                43,850             34,005            34,000             17,095             18,505             34,000                 -
           101-00000-4660   MISC RECREATION INCOME                       4,844              5,201             4,700              2,118              1,458              4,700                 -
           101-00000-4661   LEASE GREAT LAKES NAVAL MEMORIAL            15,000              7,500            15,000                  -              5,000             15,000                 -
           101-00000-4663   FLEA MARKET AT FARMERS MARKET               27,352             25,580            26,000                  -             15,096                  -           (26,000)
           101-00000-4664   FARMERS MARKET INCOME                       75,731             70,814            58,000                  -             34,517                  -           (58,000)
           101-00000-4665   LEASE BILLBOARDS                             6,800              6,800             6,800                  -                  -              6,800                 -
           101-00000-4666   SNOW PLOWING -DOWNTOWN BID                                                                               -                  -             32,000            32,000
           101-00000-4669   SMITH RYERSON                                4,320             15,290            12,000              4,577              6,225             12,000                 -
           101-00000-4670   PICNIC SHELTER                              26,000             19,212            22,000              5,859              3,838             22,000                 -
           101-00000-4671   MCGRAFT PARK                                51,051             76,761            45,000             56,130             67,466             45,000                 -
           101-00000-4672   SAFEBUILT LOT MOWING                        43,369             51,198            45,000             26,278             38,246             45,000                 -
           101-00000-4673   RENTAL - CENTRAL DISPATCH                   46,666             44,695            28,500             14,262             16,353             28,500                 -
           101-00000-4674   RENTAL - CITY HALL                          25,220             26,870            26,000             14,410             12,610             26,000                 -
           101-00000-4676   SAFEBUILT - TRASH PICKUP                    21,203             26,813            18,000             22,119             13,798             18,000                 -
           101-00000-4677   RENT                                             -              1,000                                  400                  -                                    -
           101-00000-4678   PLANNING DEPT ENFORCEMENT                      100              2,012                                1,000                700                                    -
           101-00000-4690   KITCHEN 242 RENTAL                               -                227                                    -                227                                    -
           101-00000-4693   FARMERS MARKET EVENT RENTAL                  1,000                  -               500              1,000                  -                  -              (500)
           101-00000-4694   FARMERS MARKET EBT FEES                        466              3,940             3,000              1,095              3,136                  -            (3,000)
                                                                 $   2,552,777 $        3,162,373 $       2,961,339 $        1,497,935 $        1,503,153 $        2,941,839   $       (19,500)
2Q 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       2Q Reforecast    (Decrease) From
                                                                       Actual FY2015      Actual FY2016   Estimate FY2017       12/31/16            12/31/15              FY2017            Original


                            Fines and fees
           101-00000-4701   INCOME TAX-PENALTY & INTEREST                    198,995            204,792           170,000             92,684              85,280              170,000                 -
           101-00000-4702   DELINQUENT FEES                                   14,570             35,081            25,000             18,921                   -               25,000                 -
           101-00000-4703   INTEREST/LATE INVOICES                                 -                  -                                    -                   -                                      -
           101-00000-4704   PENALTIES/INTEREST/FINES                           2,047              1,835             2,000                978                 859                2,000                 -
           101-00000-4706   LATE FEE ON INVOICES OVER 45 DAYS                  1,722              2,417             1,500              1,085                 887                1,500                 -
           101-00000-4751   CIVIL INFRACTIONS                                  8,900              9,890             8,500              7,202               3,950               11,500             3,000
           101-00000-4754   TRAFFIC FINES & FEES                              98,052             73,390            75,000             25,137              27,085               65,000           (10,000)
           101-00000-4755   COURT FEES                                       126,913            129,764           105,000             54,736              56,924              105,000                 -
                                                                       $     451,199 $          457,169 $         387,000 $          200,743 $           174,985 $            380,000 $          (7,000)

                            Other revenue
           101-00000-4800   MISC. & SUNDRY                                    10,052             15,184             7,500             10,515               4,434                7,500                 -
           101-00000-4802   REIMB:DEMOS AND BOARD-UPS                          5,270             26,353            25,000              6,850               1,954               25,000                 -
           101-00000-4803   CDBG PROGRAM REIMBURSEMENTS                      347,061            396,487           325,000              1,742              16,043              325,000                 -
           101-00000-4805   CONTRIBUTIONS                                      9,400              7,150             8,000             28,469               2,900                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             10,695              19,957               20,000                 -
           101-00000-4818   RECOVERY OF BAD DEBT                               1,782              2,934             1,500              1,225               1,885                1,500                 -
           101-00000-4821   CONTRIBUTIONS/GRANTS                              10,000              4,500            10,000                  -               4,500               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 $           85,390 $           151,673 $            452,000 $         (25,000)

                            Interest & Operating Transfers
           101-00000-4902   OP. TRANS FROM SPECIAL REVENUE                   153,274            153,000           120,000                  -                    -             182,650            62,650
           101-00000-4903   OP. TRANS FROM DEBT SERVICE                       38,000             36,000            34,000             17,000               19,000              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             64,272               40,234              12,000                 -
           101-00000-4971   UNREALIZED GAIN (LOSS) ON INVESTMENT             (12,892)            (7,428)                            (177,026)             (62,387)                                    -
           101-00000-4980   SALE OF FIXED ASSETS                                   -                100                                4,950                    -                                     -
                                                                       $     197,859 $          309,694 $         166,000 $          (90,804) $            (3,153) $          228,650 $          62,650

                            Total general fund revenues and other
                            sources                                    $   24,921,776 $       25,856,247 $     26,152,844 $        7,892,729 $         8,564,133 $         25,753,994 $        (398,850)
2Q 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        2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16              12/31/15               FY2017             Original
            I. Customer Value Added Activities

    40301 Police Department
    5100       SALARIES & BENEFITS                          7,893,152            7,938,999         8,747,264              3,787,417             3,926,603            8,747,264                 -
    5200       SUPPLIES                                        90,188               87,679            84,281                 38,931                30,613               84,281                 -
    5300       CONTRACTUAL SERVICES                           881,929              904,920           910,379                469,676               481,743              910,379                 -
    5400       OTHER EXPENSES                                  14,928               24,675            22,500                 10,392                14,175               22,500                 -
    5700       CAPITAL OUTLAYS                                 42,347                7,064            15,400                  6,014                 4,368               15,400                 -
                                                        $   8,922,544   $        8,963,337   $     9,779,824    $         4,312,430   $         4,457,502   $        9,779,824   $             -
                                                        $   8,922,544   $        8,963,337   $     9,779,824    $         4,312,430   $         4,457,502   $        9,779,824   $             -

    50336 Fire Department
    5100       SALARIES & BENEFITS                          3,423,126            3,570,031         3,667,932              1,788,199             1,769,291            3,667,932                 -
    5200       SUPPLIES                                       160,968              169,633           150,000                 64,813                54,502              150,000                 -
    5300       CONTRACTUAL SERVICES                           156,543              107,645           106,210                 43,314                36,723              106,210                 -
    5400       OTHER EXPENSES                                   6,356                3,426             7,100                  5,371                   847                9,600             2,500
    5700       CAPITAL OUTLAYS                                 66,631               67,990             5,930                  6,979                42,629                7,930             2,000
                                                        $   3,813,624   $        3,918,725   $     3,937,172    $         1,908,676   $         1,903,992   $        3,941,672   $         4,500

    50338 New Central Fire Station
    5100       SALARIES & BENEFITS                                 -                     -                 -                      -                     -                    -                 -
    5200       SUPPLIES                                            -                 3,510                 -                      -                 3,510                    -                 -
    5300       CONTRACTUAL SERVICES                           72,702                64,857            75,000                 21,283                22,975               75,000                 -
    5400       OTHER EXPENSES                                      -                     -                 -                      -                     -                    -                 -
    5700       CAPITAL OUTLAYS                                     -                 9,602                 -                      -                     -                    -                 -
                                                        $     72,702    $           77,969   $        75,000    $            21,283   $            26,485   $           75,000   $             -

    50387 Fire Safety Inspections
    5100       SALARIES & BENEFITS                                  -                1,597                 -                      -                 1,597                    -                 -
    5200       SUPPLIES                                        11,117               11,404                 -                  4,916                 5,213                    -                 -
    5300       CONTRACTUAL SERVICES                           443,734              465,888           485,000                289,637               206,906              485,000                 -
    5400       OTHER EXPENSES                                       -                   18                 -                      -                     -                    -                 -
    5700       CAPITAL OUTLAYS                                      -                    -                 -                      -                     -                    -                 -
                                                        $     454,851   $          478,907   $       485,000    $           294,553   $           213,716   $          485,000   $             -
                                                        $   4,341,177   $        4,475,601   $     4,497,172    $         2,224,512   $         2,144,193   $        4,501,672   $         4,500



    60523 General Sanitation
    5100       SALARIES & BENEFITS                             19,530               23,639            25,704                10,614                11,710                25,704                 -
    5200       SUPPLIES                                             -                    -                 -                     -                     -                     -                 -
    5300       CONTRACTUAL SERVICES                         1,570,550            1,581,754         1,795,000               765,702               662,290             1,795,000                 -
    5400       OTHER EXPENSES                                       -                    -                 -                     -                     -                     -                 -
    5700       CAPITAL OUTLAYS                                      -                    -                 -                     -                     -                     -                 -
    5900       OTHER FINANCING USES                                 -                    -                 -                     -                     -                     -                 -
                                                        $   1,590,080   $        1,605,393   $     1,820,704    $          776,316    $          674,000    $        1,820,704   $             -
2Q 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           2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16                 12/31/15                  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                 -                10,552                   12,900                        -                 -
    5300       CONTRACTUAL SERVICES                          623,463               553,843           575,000               211,092                  265,573                  600,000            25,000
    5400       OTHER EXPENSES                                      -                     -                 -                     -                        -                        -                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                     -                        -                        -                 -
                                                        $    623,463    $          566,743   $       575,000    $          221,644       $          278,473       $          600,000   $        25,000

    60446 Community Event Support
    5100       SALARIES & BENEFITS                            17,778                15,154            16,536                 14,351                    8,430                  21,000             4,464
    5200       SUPPLIES                                          416                   787             1,200                    191                      453                   1,200                 -
    5300       CONTRACTUAL SERVICES                            6,141                 3,483            10,000                  9,776                    2,491                  12,000             2,000
    5400       OTHER EXPENSES                                      -                     -                 -                      -                        -                       -                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                      -                        -                       -                 -
                                                        $     24,335    $           19,424   $        27,736    $            24,318      $            11,374      $           34,200   $         6,464

    70751 Parks Maintenance
    5100       SALARIES & BENEFITS                            335,403              427,560           515,509               219,641                  200,063                  515,509                 -
    5200       SUPPLIES                                        59,549               85,098            90,450                60,903                   49,057                   90,450                 -
    5300       CONTRACTUAL SERVICES                           606,511              766,449           707,343               456,919                  388,168                  740,000            32,657
    5400       OTHER EXPENSES                                     343                   77             1,000                     -                        -                    1,000                 -
    5700       CAPITAL OUTLAYS                                  5,893                4,912             5,000                 1,800                    1,694                    5,000                 -
                                                        $   1,007,699   $        1,284,096   $     1,319,302    $          739,263       $          638,982       $        1,351,959   $        32,657
2Q 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           2Q Reforecast       (Decrease) From
                                                        Actual FY2015       Actual FY2016       Estimate FY2017          12/31/16                 12/31/15                  FY2017                Original
    70757 Mc Graft Park Maintenance
    5100       SALARIES & BENEFITS                             4,632                19,806               23,510                  9,294                   12,931                  23,510                    -
    5200       SUPPLIES                                       14,818                 6,097                6,500                  4,170                    4,527                   6,500                    -
    5300       CONTRACTUAL SERVICES                           24,215                30,716               30,750                 17,682                   22,434                  30,750                    -
    5400       OTHER EXPENSES                                      -                     -                    -                      -                        -                       -                    -
    5700       CAPITAL OUTLAYS                                   310                   350                8,000                      -                        -                   8,000                    -
                                                        $     43,975    $           56,969      $        68,760    $            31,146      $            39,892      $           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                36,140                   36,399                  103,711                    -
    5200       SUPPLIES                                        5,387                 9,719                8,800                 4,044                    5,166                    8,800                    -
    5300       CONTRACTUAL SERVICES                          301,530               320,285              311,540               184,777                  194,900                  311,540                    -
    5400       OTHER EXPENSES                                      -                    65                    -                     -                        -                        -                    -
    5700       CAPITAL OUTLAYS                                 1,841                     -                1,450                   457                        -                    1,450                    -
                                                        $    398,629    $          406,444      $       425,501    $          225,418       $          236,465       $          425,501      $             -

    70585 Parking Operations
    5100       SALARIES & BENEFITS                               905                 2,433                2,555                    223                        -                   2,555                    -
    5200       SUPPLIES                                          521                   225                    -                      -                      225                       -                    -
    5300       CONTRACTUAL SERVICES                            4,409                 2,951                4,000                  1,014                    1,448                   4,000                    -
    5400       OTHER EXPENSES                                  6,777                     -                    -                      -                        -                       -                    -
    5700       CAPITAL OUTLAYS                                     -                     -                    -                      -                        -                       -                    -
                                                        $     12,612    $            5,609      $         6,555    $             1,237      $             1,673      $            6,555      $             -

    70357 Graffiti Removal
    5100       SALARIES & BENEFITS                             2,284                   815                4,257                    220                      607                   4,257                    -
    5200       SUPPLIES                                        1,332                    15                3,200                     93                       15                   3,200                    -
    5300       CONTRACTUAL SERVICES                              179                   271                    -                      -                      271                       -                    -
    5400       OTHER EXPENSES                                      -                     -                    -                      -                        -                       -                    -
    5700       CAPITAL OUTLAYS                                     -                     -                    -                      -                        -                       -                    -
                                                        $      3,795    $            1,101      $         7,457    $               313      $               893      $            7,457      $             -
2Q 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           2Q Reforecast       (Decrease) From
                                                        Actual FY2015       Actual FY2016       Estimate FY2017          12/31/16              12/31/15                  FY2017                Original
    70863 Farmers' Market & Flea Market
    5100       SALARIES & BENEFITS                            40,832                49,303               40,000                  2,186                24,969                          -           (40,000)
    5200       SUPPLIES                                        7,974                 7,501                7,500                     18                 2,861                          -            (7,500)
    5300       CONTRACTUAL SERVICES                           96,354               119,184               85,000                    223                48,737                          -           (85,000)
    5400       OTHER EXPENSES                                  1,004                     -                2,500                      -                     -                          -            (2,500)
    5700       CAPITAL OUTLAYS                                     -                   225               15,000                    160                     -                          -           (15,000)
                                                        $    146,164    $          176,213      $       150,000    $             2,587   $            76,567      $                   -   $      (150,000)

    70865 Farmers' Market EBT Program
    5100       SALARIES & BENEFITS                                 -                        -                 -                      -                        -                       -                 -
    5200       SUPPLIES                                          841                        -                 -                     90                        -                       -                 -
    5300       CONTRACTUAL SERVICES                              180                        -             2,000                      -                        -                       -            (2,000)
    5400       OTHER EXPENSES                                      -                        -                 -                      -                        -                       -                 -
    5700       CAPITAL OUTLAYS                                     -                        -                 -                      -                        -                       -                 -
                                                        $      1,021    $                   -   $         2,000    $                90   $                    -   $                   -   $        (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    $         2,023,779   $         1,958,319      $        4,325,136      $      (152,879)
2Q 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        2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16              12/31/15               FY2017             Original
    70775 General Recreation
    5100       SALARIES & BENEFITS                                 -                     -                 -                      -                     -                    -                 -
    5200       SUPPLIES                                            -                     -               200                    172                     -                  200                 -
    5300       CONTRACTUAL SERVICES                           97,212               126,580           100,300                 47,650                57,385              100,300                 -
    5400       OTHER EXPENSES                                      -                     -                 -                      -                     -                    -                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                      -                     -                    -                 -
                                                        $     97,212    $          126,580   $       100,500    $            47,822   $            57,385   $          100,500   $             -

    80387 Environmental Services
    5100       SALARIES & BENEFITS                            129,144              151,364           164,058                63,787                71,405               164,058                 -
    5200       SUPPLIES                                         5,472                3,444             8,300                 1,233                 1,946                 8,300                 -
    5300       CONTRACTUAL SERVICES                           864,793              858,698           975,724               487,093               390,762               975,724                 -
    5400       OTHER EXPENSES                                     689                  632             1,000                   243                     -                 1,000                 -
    5700       CAPITAL OUTLAYS                                     69                1,922             3,500                    93                 1,150                 3,500                 -
                                                        $   1,000,167   $        1,016,060   $     1,152,582    $          552,449    $          465,263    $        1,152,582   $             -
                                                        $   1,097,379   $        1,142,640   $     1,253,082    $          600,271    $          522,648    $        1,253,082   $             -

    10875 Other - Support to Outside Agencies
             MUSKEGON AREA TRANSIT (MATS)                     78,782                87,074            95,400                45,610                 20,732               95,400                 -
             NEIGHBORHOOD ASSOCIATION GRANTS                  21,436                15,750            21,000                 2,981                    750               21,000                 -
             MUSKEGON AREA FIRST                              45,566                45,566            45,660                22,783                 22,783               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                25,000                      -               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                  2,500                2,500                 -
             MLK DIVERSITY PROGRAM                             1,000                 1,000             2,000                 1,000                      -                2,000                 -
             MUSKEGON AREA LABOR MANAGEMENT (MALMC)            1,000                 1,000             1,000                 1,000                  1,000                1,000                 -
             POUND BUDDIES                                         -                 2,500             2,500                 2,500                  2,500                2,500                 -
            Support To Outside Agencies                 $    270,750 $             273,572   $       254,560    $          103,374    $            50,265   $          254,560   $             -
                                                        $    270,750 $             273,572   $       254,560    $          103,374    $            50,265   $          254,560   $             -



            Total Customer Value Added Activities       $ 18,497,228 $          19,002,898 $      20,262,653 $            9,264,366   $         9,132,927   $       20,114,274 $        (148,379)
            As a Percent of Total General Fund
            Expenditures                                       75.1%                 74.1%             77.5%                  77.9%                 79.8%                77.0%            323.4%
2Q 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        2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16              12/31/15               FY2017             Original
            II. Business Value Added Activities

    10101 City Commission
    5100       SALARIES & BENEFITS                            69,185                69,531            74,698                 32,059                32,584               74,698                 -
    5200       SUPPLIES                                           96                 9,165             1,000                    285                   335                1,000                 -
    5300       CONTRACTUAL SERVICES                            1,035                12,982             2,000                 11,626                 3,221                2,000                 -
    5400       OTHER EXPENSES                                    765                 2,490             2,500                  2,383                 1,413                2,500                 -
    5700       CAPITAL OUTLAYS                                   960                   940             1,500                    480                   480                1,500                 -
                                                        $     72,041    $           95,108   $        81,698    $            46,833   $            38,033   $           81,698   $             -

    10102 City Promotions & Public Relations
    5100       SALARIES & BENEFITS                                 -                     -                 -                      -                     -                    -                 -
    5200       SUPPLIES                                          523                 2,104             4,000                  3,325                 1,445                4,000                 -
    5300       CONTRACTUAL SERVICES                           39,172                59,380            46,000                 17,102                33,444               46,000                 -
    5400       OTHER EXPENSES                                    364                 2,396                 -                     55                   113                    -                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                      -                     -                    -                 -
                                                        $     40,059    $           63,880   $        50,000    $            20,482   $            35,002   $           50,000   $             -

    10172 City Manager
    5100       SALARIES & BENEFITS                           218,550               239,362           259,295               112,306               108,450               274,295            15,000
    5200       SUPPLIES                                        1,698                 3,603             1,400                   460                 1,859                 1,400                 -
    5300       CONTRACTUAL SERVICES                            7,823                26,161            15,000                14,899                20,858                15,000                 -
    5400       OTHER EXPENSES                                  4,646                10,627             3,000                 3,140                 6,352                 3,000                 -
    5700       CAPITAL OUTLAYS                                   268                   204             2,000                    40                    45                 2,000                 -
                                                        $    232,985    $          279,957   $       280,695    $          130,845    $          137,564    $          295,695   $        15,000

    10145 City Attorney
    5100       SALARIES & BENEFITS                                 -                     -                 -                     -                     -                     -                 -
    5200       SUPPLIES                                            -                   880                 -                     -                     -                     -                 -
    5300       CONTRACTUAL SERVICES                          314,957               351,108           350,000               162,551               172,856               350,000                 -
    5400       OTHER EXPENSES                                      -                     -                 -                     -                     -                     -                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                     -                     -                     -                 -
                                                        $    314,957    $          351,988   $       350,000    $          162,551    $          172,856    $          350,000   $             -
                                                        $    660,042    $          790,933   $       762,393    $          360,711    $          383,455    $          777,393   $        15,000

    20228 Affirmative Action
    5100       SALARIES & BENEFITS                            75,978                90,691            98,892                 36,749                43,003               86,392           (12,500)
    5200       SUPPLIES                                          185                   247               750                    148                   111                  750                 -
    5300       CONTRACTUAL SERVICES                            1,264                 1,167             2,027                    446                   575                2,027                 -
    5400       OTHER EXPENSES                                    456                 2,078               800                    240                   906                  800                 -
    5700       CAPITAL OUTLAYS                                     -                    59             1,000                      -                    59                1,000                 -
                                                        $     77,883    $           94,242   $       103,469    $            37,583   $            44,654   $           90,969   $       (12,500)
2Q 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        2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16                 12/31/15               FY2017             Original
    20215 City Clerk & Elections
    5100       SALARIES & BENEFITS                           290,903               302,055           325,256               183,070                  132,990               355,256            30,000
    5200       SUPPLIES                                       38,172                32,917            34,460                25,262                   10,058                34,460                 -
    5300       CONTRACTUAL SERVICES                           43,116                23,564            22,880                11,323                   15,503                22,880                 -
    5400       OTHER EXPENSES                                  3,056                 5,864             6,875                 1,984                    1,781                 6,875                 -
    5700       CAPITAL OUTLAYS                                 3,702                 1,594             2,500                 3,198                        -                 2,500                 -
                                                        $    378,949    $          365,994   $       391,971    $          224,837       $          160,332    $          421,971   $        30,000

    20220 Civil Service
    5100       SALARIES & BENEFITS                                 -                     -                 -                     -                        -                     -                 -
    5200       SUPPLIES                                          495                     -               500                   423                        -                   500                 -
    5300       CONTRACTUAL SERVICES                           94,970               114,436            98,000                39,459                   45,074                98,000                 -
    5400       OTHER EXPENSES                                  2,034                 2,783             2,800                 2,751                    2,783                 2,800                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                     -                        -                     -                 -
                                                        $     97,499    $          117,219   $       101,300    $           42,633       $           47,857    $          101,300   $             -
                                                        $    554,331    $          577,455   $       596,740    $          305,053       $          252,843    $          614,240   $        17,500

    30202 Finance Administration
    5100       SALARIES & BENEFITS                           344,660               375,411           391,274               189,179                  170,381               391,274                 -
    5200       SUPPLIES                                        2,726                 2,875             2,625                   991                      812                 2,625                 -
    5300       CONTRACTUAL SERVICES                           61,170                66,241            65,562                45,717                   46,398                65,562                 -
    5400       OTHER EXPENSES                                    961                   550               850                   718                      542                   850                 -
    5700       CAPITAL OUTLAYS                                 1,171                     -             1,500                   349                        -                 1,500                 -
                                                        $    410,688    $          445,077   $       461,811    $          236,954       $          218,133    $          461,811   $             -

    30209 Assessing Services
    5100       SALARIES & BENEFITS                             3,086                 3,245             4,000                   263                      487                 4,000                 -
    5200       SUPPLIES                                            -                     -                 -                     -                        -                     -                 -
    5300       CONTRACTUAL SERVICES                          295,099               291,100           323,000               160,000                  145,212               323,000                 -
    5400       OTHER EXPENSES                                    105                   311                 -                     -                        -                     -                 -
    5700       CAPITAL OUTLAYS                                     -                     -                 -                     -                        -                     -                 -
                                                        $    298,290    $          294,656   $       327,000    $          160,263       $          145,699    $          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   $             -
2Q 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       2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16              12/31/15              FY2017             Original
    30205 Income Tax Administration
    5100       SALARIES & BENEFITS                           225,004               229,730           258,241               111,678               109,124              258,241                 -
    5200       SUPPLIES                                       11,870                11,328            10,760                 3,142                 3,596               10,760                 -
    5300       CONTRACTUAL SERVICES                           76,675                67,953            70,550                26,499                30,133               70,550                 -
    5400       OTHER EXPENSES                                    694                   637             1,000                    98                   254                1,000                 -
    5700       CAPITAL OUTLAYS                                 1,148                   170             2,500                 1,392                     -                2,500                 -
                                                        $    315,391    $          309,818   $       343,051    $          142,809    $          143,107   $          343,051   $             -

    30253 City Treasurer
    5100       SALARIES & BENEFITS                           365,147               364,615           422,005               186,853               168,948              422,005                 -
    5200       SUPPLIES                                       70,943                71,970            81,200                31,462                34,777               81,200                 -
    5300       CONTRACTUAL SERVICES                          119,966               119,861           108,550                33,690                62,780              108,550                 -
    5400       OTHER EXPENSES                                    953                   823             1,000                     -                    14                1,000                 -
    5700       CAPITAL OUTLAYS                                   617                 1,071                 -                   557                    30                    -                 -
                                                        $    557,626    $          558,340   $       612,755    $          252,562    $          266,549   $          612,755   $             -

    30248 Information Systems Administration
    5100       SALARIES & BENEFITS                            334,010              356,096           382,942               165,766               160,397              382,942                 -
    5200       SUPPLIES                                           234                  582             1,513                 2,990                   230                1,513                 -
    5300       CONTRACTUAL SERVICES                            40,213               31,193            49,744                23,832                25,624               49,744                 -
    5400       OTHER EXPENSES                                   1,062                5,124            16,024                   461                 4,928               16,024                 -
    5700       CAPITAL OUTLAYS                                 38,699               66,380            22,894                11,473                14,606               22,894                 -
                                                        $     414,218   $          459,375   $       473,117    $          204,522    $          205,785   $          473,117   $             -
                                                        $   2,369,826   $        2,303,210   $     2,457,334    $          997,110    $          979,393   $        2,457,334   $             -

    60265 City Hall Maintenance
    5100       SALARIES & BENEFITS                            30,149                33,042            40,275                 16,723               15,616               40,275                 -
    5200       SUPPLIES                                       13,128                15,840            17,875                  6,044                8,330               17,875                 -
    5300       CONTRACTUAL SERVICES                          183,990               160,963           209,450                 65,221               68,928              209,450                 -
    5400       OTHER EXPENSES                                      -                     -               500                      -                    -                  500                 -
    5700       CAPITAL OUTLAYS                                  (562)               11,425            11,900                  2,619                9,004               11,900                 -
                                                        $    226,705 $             221,270   $       280,000    $            90,607   $          101,878   $          280,000   $             -
                                                        $    226,705 $             221,270   $       280,000    $            90,607   $          101,878   $          280,000   $             -
2Q 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        2Q Reforecast    (Decrease) From
                                                        Actual FY2015       Actual FY2016     Estimate FY2017          12/31/16              12/31/15               FY2017             Original
    80400 Planning, Zoning and Economic Development
    5100       SALARIES & BENEFITS                           317,112               376,323            371,947               190,860               160,906               371,947                 -
    5200       SUPPLIES                                        3,042                 3,684              3,500                 1,174                 1,613                 3,500                 -
    5300       CONTRACTUAL SERVICES                           51,125                27,080             34,148                18,756                13,961                34,148                 -
    5400       OTHER EXPENSES                                  1,871                 3,022              4,000                   742                 1,285                 4,000                 -
    5700       CAPITAL OUTLAYS                                   508                12,158              3,500                   350                 6,762                 3,500                 -
                                                        $    373,658    $          422,267    $       417,095    $          211,882    $          184,527    $          417,095   $             -
                                                        $    373,658    $          422,267    $       417,095    $          211,882    $          184,527    $          417,095   $             -

            Total Business Value Added Activities       $   4,184,562   $        4,315,135    $     4,513,562    $         1,965,363   $         1,902,096   $        4,546,062   $        32,500
            As a Percent of Total General Fund
            Expenditures                                       17.0%                 16.8%              17.3%                  16.5%                 16.6%                17.4%            -70.8%

            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               137,500               125,000               275,000                 -
              DDA DEBT SERVICE FUND                            70,000               175,000           175,000                87,500                87,500               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    $          225,000    $          212,500    $          513,000   $             -
2Q 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           2Q Reforecast    (Decrease) From
                                                            Actual FY2015       Actual FY2016    Estimate FY2017          12/31/16                 12/31/15                  FY2017             Original
    30851     General Insurance                                  289,370               261,419           270,640                    103                           -              270,640   $             -
    30906     Debt Retirement                                    281,935               277,426           167,000               153,071                  171,453                  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               290,000                    23,900                 395,000
      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                 -                19,400                    19,400                       -                 -
      91405    FIRE STATION # 4 ROOF REPLACEMENT                   5,798                     -                 -                     -                         -                       -                 -
      91412    CITY HALL REPLACEMENT WINDOWS                       5,100                 5,400            20,000                   600                     4,500                  20,000                 -
               CITY HALL BLDG WASH / SEAL                              -                     -                 -                     -                         -                  30,000            30,000
               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                 -               270,000                         -                       -                 -
               PARKS RESERVATION SYSTEM                                -                     -                 -                     -                         -                  15,000            15,000
               ROOF REPAIRS AT LC WALKER ARENA                         -                     -                 -                     -                         -                  25,000            25,000
      99152    DOJ JAG GRANT MUSKEGON HEIGHTS                     19,903                17,363                 -                     -                         -                       -                 -
              Total Fixed-Budget Items                      $   1,932,567   $        2,309,655   $     1,375,640    $          668,174       $          407,853       $        1,445,640   $        70,000
              As a Percent of Total General Fund
              Expenditures                                           7.9%                 9.0%              5.3%                   5.6%                     3.6%                    5.5%           -152.6%



               Total General Fund                           $ 24,614,357 $          25,627,688 $      26,151,855 $          11,897,903 $             11,442,876 $             26,105,976 $         (45,879)




              Recap: Total General Fund By Line Item Expenditure Classification
    5100        Salaries & Benefits                         $ 14,230,441 $          14,717,883 $      15,939,861 $            7,158,683      $         7,166,891      $       15,936,825 $          (3,036)
    5200        Operating Supplies                               501,721               555,324           520,014                265,832                  234,154                 512,514            (7,500)
    5300        Contractual Services                           8,026,917             7,818,228         8,408,357              3,740,778                3,517,758               8,316,014           (92,343)
    5400        Other Expenses                                   127,102               109,986           173,449                 28,578                   35,393                 173,449                 -
    5700        Capital Outlays                                  260,218               381,075           430,174                325,961                  104,727                 487,174            57,000
    5900        All Other Financing Uses                       1,467,958             2,035,590           680,000                378,071                  383,953                 680,000                 -
               Total General Fund                           $ 24,614,357 $          25,618,086 $      26,151,855 $          11,897,903 $             11,442,876 $             26,105,976 $         (45,879)
2Q 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                                                             2Q Reforecast       Increase (Decrease)                Comments
                                                                                                                       12/31/16                 12/31/15
                                                                                          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                   962,940                1,100,196                2,800,000                        -   FY16 included state one-time $700K
         Interest income                             16,712                12,827                    9,100                     3,180                    5,991                   9,100                        -
         Operating transfers in                     500,000                       -                          -                        -                        -                       -                     -
         Bond Proceeds                                      -                     -             1,650,000                             -                                     1,650,000                        -
         Other                                       17,414                76,819                   29,777                    19,908                    6,934                  29,777                        -
                                          $       6,986,988     $       5,541,339     $         5,923,877        $          986,028       $        1,113,121       $        5,923,877      $                 -


60900   Operating Expenditures
5100      Salaries & Benefits             $         583,140     $         552,920     $           805,532        $          265,650       $          257,291       $          805,532      $                 -
5200      Operating Supplies                        239,474               232,950                 271,000                     73,318                   85,251                 271,000                        -
5300      Contractual Services                    2,801,480               941,866               1,000,000                   440,397                  430,503                1,000,000                        -
5400      Other Expenses                               2,889                 6,092                   2,000                       671                    4,021                   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        $          994,380       $          989,303       $        2,759,532      $                 -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                      -                                                     $                   -   $                 -
5300      Contractual Services                    2,228,322             3,543,953               3,400,000                   946,679                2,972,900                3,385,000                (15,000)

5700      Capital Outlays                                   -                     -                          -                        -                        -                       -                     -

                                          $       2,228,322     $       3,543,953     $         3,400,000        $          946,679       $        2,972,900       $        3,385,000      $         (15,000)
                                          $       6,087,189     $       5,509,152     $         6,159,532        $        1,941,059       $        3,962,203       $        6,144,532      $         (15,000)


        Available Fund Balance - EOY      $       2,252,721     $       2,284,908     $         1,379,619        $        1,329,877       $          (596,361) $            2,064,253      $         684,634
2Q 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                                                             2Q Reforecast       Increase (Decrease)               Comments
                                                                                                                         12/31/16                 12/31/15
                                                                                            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                   236,882                  244,736                  800,000                        -
         Interest income                               7,684                 7,366                     2,900                       767                    1,412                   2,900                        -
         Operating transfers in                     300,000                         -               500,000                             -                        -              500,000                        -   (FY2017: $50K GF + $450K MSF)

         Other                                       23,856                18,368                     18,000                     6,568                   13,099                  18,000                        -

                                          $       1,179,632     $         929,252       $         1,497,900        $          244,217       $          259,247       $        1,497,900      $                 -


60900   Operating Expenditures
5100      Salaries & Benefits             $         411,115     $         545,553       $           578,643        $          257,386       $          217,660       $          578,643      $                 -
5200      Operating Supplies                        144,064               121,994                   140,000                     35,550                   22,550                 140,000                        -
5300      Contractual Services                      580,530               676,602                   700,000                   330,943                  289,239                  700,000                        -
5400      Other Expenses                               2,597                      661                  1,000                       126                           -                1,000                        -
5700      Capital Outlays                                   -                       -                          -                        -                        -                       -                     -
5900      Other Financing Uses                              -                       -                          -                        -                        -                       -                     -
                                          $       1,138,306     $       1,344,810       $         1,419,643        $          624,005       $          529,449       $        1,419,643      $                 -


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                       72,161                55,426                   110,000                     14,035                   18,238                  80,000                (30,000)

                                          $          72,161     $          55,426       $           110,000        $            14,035      $            18,238      $           80,000      $         (30,000)

                                          $       1,210,467     $       1,400,236       $         1,529,643        $          638,040       $          547,687       $        1,499,643      $         (30,000)


        Available Fund Balance - EOY      $         706,676     $         235,692       $             35,828       $          (158,131) $              418,236       $          233,949      $         198,121
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                12/31/16                 12/31/15
                                                                                                   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      $                 -
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                          12/31/16                 12/31/15
                                                                                             Estimate FY2017                                                                 FY2017              From Original



252     Farmers Market & Kitchen 242
        Available Fund Balance - BOY         $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -


        Means of Financing
         Federal and State Grants            $                 -   $                 -   $                      -   $                    -   $                    -   $          265,000      $         265,000
         Flea Market at Farmers Market                         -                     -                          -                10,661                           -               20,000                 20,000
         Farmers Market Income                                 -                     -                          -                38,212                           -               58,000                 58,000
         Kitchen 242 Rental                                    -                     -                          -                 6,275                           -               12,000                 12,000
         Farmers Market Event Rental                           -                     -                          -                   250                           -                  500                     500
         Farmers Market EBT Fees                               -                     -                          -                 1,953                           -                3,000                   3,000
         Promotional Products                                  -                     -                          -                   558                           -                1,000                   1,000
         Funraising Revenue                                    -                     -                          -                16,278                           -               20,000                 20,000
         Other                                                 -                     -                          -                        -                        -                       -                     -
                                             $                 -   $                 -   $                      -   $            74,187      $                    -   $          379,500      $         379,500


70863   Operating Expenditures
5100      Salaries & Benefits                $                 -   $                 -   $                      -   $            13,547      $                    -   $           40,000      $          40,000
5200      Operating Supplies                                   -                     -                          -                 4,366                           -                7,500                   7,500
5300      Contractual Services                                 -                     -                          -                66,874                           -               87,000                 87,000
5400      Other Expenses                                       -                     -                          -                   170                           -                2,500                   2,500
5700      Capital Outlays                                      -                     -                          -                 1,662                           -              215,000                215,000
5900      Other Financing Uses                                 -                     -                          -                        -                        -                       -                     -
                                             $                 -   $                 -   $                      -   $            86,619      $                    -   $          352,000      $         352,000


70867   Operating Expenditures - FDA Grant
5200      Operating Supplies                 $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                 -                     -                          -                 3,259                           -               65,000                 65,000
5700      Capital Outlays                                      -                     -                          -                        -                        -                       -                     -
                                             $                 -   $                 -   $                      -   $             3,259      $                    -   $           65,000      $          65,000


90000   Project Expenditures
5200      Operating Supplies                 $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                 -                     -                          -                        -                        -                       -                     -
                                             $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
                                             $                 -   $                 -   $                      -   $            89,878      $                    -   $          417,000      $         417,000


        Available Fund Balance - EOY         $                 -   $                 -   $                      -   $           (15,691) $                        -   $          (37,500) $             (37,500)
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                  12/31/16                 12/31/15
                                                                                                     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       $             9,595      $               590      $           22,000      $                 -
         Rent                                                          -              53,761                   54,000                    69,400                      750                  54,000                        -
         Arena Event Revenue                                           -             170,549                 210,000                     89,366                    5,852                 210,000                        -
         Shop Rental                                                   -                2,400                   3,500                       600                      900                   3,500                        -
         Concessions Non Alcoholic                                     -             237,692                 290,000                     62,638                   63,143                 290,000                        -
         Alcoholic Beverage                                            -             136,153                 168,000                     46,766                   30,935                 168,000                        -
         Ice Hockey Rental                                             -             144,978                 185,000                     71,144                   80,997                 185,000                        -
         Operating transfers in - General Fund/Cap                     -             764,832                 235,000                             -                        -              235,000                        -
         Bond Proceeds                                                                       -                          -                        -                                                -                     -
         Other                                                         -             155,048                   10,000                    22,703                           -               10,000                        -
                                                     $                 -   $       1,682,906     $         1,177,500        $          372,212       $          183,167       $        1,177,500      $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                        $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                           -             172,306                 170,000                     68,349                   55,654                 170,000                        -
5300      Contractual Services                                         -           1,069,316                 962,000                   435,238                  198,706                  962,000                        -
5400      Other Expenses                                               -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                                              -             150,956                   50,000                    68,503                   17,225                  50,000                        -
5900      Other Financing Uses                                         -                     -                          -                        -                        -                       -                     -
                                                     $                 -   $       1,392,578     $         1,182,000        $          572,090       $          271,585       $        1,182,000      $                 -


90000   Project Expenditures
5200      Operating Supplies                         $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                         -              43,300                            -                16,297                           -                       -                     -
                                                     $                 -   $          43,300     $                      -   $            16,297      $                    -   $                   -   $                 -
                                                     $                 -   $       1,435,878     $         1,182,000        $          588,387       $          271,585       $        1,182,000      $                 -


        Available Fund Balance - EOY                 $                 -   $         247,028     $              1,032       $            30,853      $           (88,418) $              242,528      $         241,496
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                  12/31/16                 12/31/15
                                                                                                     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                       229                      387                     700                        -
         Operating transfers in - General Fund                       -                       -                          -                        -                        -                       -                     -
         Other                                                     705                       -                 16,000                     9,840                           -               16,000                        -
                                                 $            1,634      $                 759   $             16,700       $            10,069      $               387      $           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                    15,378                    4,765                  13,500                        -
5900      Other Financing Uses                              31,349                           -                          -                        -                        -                       -                     -
                                                 $          32,729       $          20,258       $             18,500       $            15,378      $             4,765      $           18,500      $                 -


90000   Project Expenditures
5200      Operating Supplies                     $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                       -                       -                          -                        -                        -                       -                     -
                                                 $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                 $          32,729       $          20,258       $             18,500       $            15,378      $             4,765      $           18,500      $                 -


        Available Fund Balance - EOY             $         158,309       $         138,810       $           152,209        $          133,501       $          153,931       $          137,010      $         (15,199)
2Q 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                                                             2Q Reforecast       Increase (Decrease)               Comments
                                                                                                                                  12/31/16                 12/31/15
                                                                                                     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                           -                        -                 2,892                          -                     -
         State shared revenue                                          -                     -                          -                        -                        -                       -                     -
         Charges for services                                          -                     -                          -                        -                        -                       -                     -
         Interest income                                              6                      9                          -                        4                        4                       -                     -
         Operating transfers in - General Fund                         -                     -                          -                        -                        -                       -                     -
         Operating transfers in - TIFA Fund                            -                     -                          -                        -                        -                       -                     -
         Operating transfers in - Insurance Fund                       -                     -                          -                        -                        -                       -                     -
         Other                                                       200                     -                          -                        -                        -                2,500                   2,500    grant from Consumers Energy
                                                   $                 206   $            1,599    $                      -   $                    4   $             2,896      $            2,500      $            2,500


70805   Operating Expenditures
5100      Salaries & Benefits                      $                   -   $                 -   $                      -   $               680      $                    -   $                   -   $                 -
5200      Operating Supplies                                           -                1,890                           -                 3,659                    1,844                                                -
5300      Contractual Services                                         -                     -                          -                 1,288                           -                       -                     -
5400      Other Expenses                                               -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                                              -                     -                          -                        -                        -                       -                     -
5900      Other Financing Uses                                         -                     -                          -                        -                        -                       -                     -
                                                   $                   -   $            1,890    $                      -   $             5,627      $             1,844      $                   -   $                 -


90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                         -                     -                          -                        -                        -                       -                     -
                                                   $                   -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                   $                   -   $            1,890    $                      -   $             5,627      $             1,844      $                   -   $                 -


        Available Fund Balance - EOY               $            1,362      $            1,071    $              1,767       $            (4,552) $                 2,414      $            3,571      $            1,804
2Q 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                                                              2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                    12/31/16                  12/31/15
                                                                                                       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        $                     -   $                    -   $          131,000      $            1,000
         Federal & state grants                                        -                       -                          -                         -                        -                       -                     -
         State shared revenue                                          -                       -                          -                         -                        -                       -                     -
         Charges for services                                          -                       -                          -                         -                        -                       -                     -
         Interest income                                             401                     273                    300                            52                   130                     300                        -
         Operating transfers in - General Fund                         -                       -                          -                         -                        -                       -                     -
         Operating transfers in - TIFA Fund                            -                       -                          -                         -                        -                       -                     -
         Operating transfers in - Insurance Fund                       -                       -                          -                         -                        -                       -                     -
         Other                                                  4,794                   5,570                     4,700                     6,401                            -                6,400                   1,700
                                                   $         132,853       $         136,828       $           135,000        $             6,453       $               130      $          137,700      $            2,700


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                     19,843                    21,713                 158,000                     420
                                                   $         165,384       $         149,778       $           163,280        $            19,843       $            21,713      $          158,000      $           (5,280)


90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
5300      Contractual Services                                         -                       -                          -                         -                        -                       -                     -
                                                   $                   -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
                                                   $         165,384       $         149,778       $           163,280        $            19,843       $            21,713      $          158,000      $           (5,280)


        Available Fund Balance - EOY               $      (1,331,453) $           (1,344,403) $              (1,309,113) $            (1,357,793) $             (1,353,036) $            (1,364,703) $             (55,590)
2Q 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                                                               2Q Reforecast        Increase (Decrease)   Comments
                                                                                                                                    12/31/16                  12/31/15
                                                                                                       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        $                     -   $                     -   $          164,000       $            4,000
         Federal & state grants                                        -                       -                          -                         -                         -                        -                     -
         State shared revenue                                          -                       -                          -                         -                         -                        -                     -
         Charges for services                                          -                       -                          -                         -                         -                        -                     -
         Interest income                                             110                     154                          -                        30                        26                        -                     -
         Operating transfers in - General Fund                         -                       -                          -                         -                         -                        -                     -
         Operating transfers in - TIFA Fund                            -                       -                          -                         -                         -                        -                     -
         Operating transfers in - Insurance Fund                       -                       -                          -                         -                         -                        -                     -
         Other                                                         -                      34                          -                   754                             -                  750                      750
                                                   $         132,290       $         160,602       $           160,000        $               784       $                    26   $          164,750       $            4,750


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                              -                         -              182,650                  29,650
                                                   $         132,180       $         142,745       $           160,000        $                     -   $                     -   $          182,650       $          22,650


90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                   -   $                      -   $                     -   $                     -   $                    -   $                 -
5300      Contractual Services                                         -                       -                          -                         -                         -                        -                     -
                                                   $                   -   $                   -   $                      -   $                     -   $                     -   $                    -   $                 -
                                                   $         132,180       $         142,745       $           160,000        $                     -   $                     -   $          182,650       $          22,650


        Available Fund Balance - EOY               $                 110   $          17,967       $                110       $            18,751       $               136       $                   67   $              (43)
2Q 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                                                               2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                 12/31/16                  12/31/15
                                                                                                    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       $                     -   $                     -   $           96,000      $            1,000
         Federal & state grants                                      -                      -                          -                         -                         -                       -                     -
         State shared revenue                                        -                      -                          -                         -                         -                       -                     -
         Charges for services                                        -                      -                          -                         -                         -                       -                     -
         Interest income                                           129                     87                    100                            55                        68                  100                        -
         Operating transfers in - General Fund             227,000                 265,000                  275,000                   137,500                   125,000                   275,000                        -
         Other                                             100,953                  75,000                    75,000                    77,998                             -               77,990                   2,990

                                                 $         430,174       $         435,459      $           445,100        $          215,553        $          125,068        $          449,090      $            3,990


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                     40,730                    42,371                  448,925                        -
                                                 $         439,500       $         447,950      $           449,425        $            40,730       $            42,371       $          449,425      $                 -


90000   Project Expenditures
5200      Operating Supplies                     $                   -   $                  -   $                      -   $                     -   $                     -   $                   -   $                 -
5300      Contractual Services                                       -                      -                          -                         -                         -                       -                     -
                                                 $                   -   $                  -   $                      -   $                     -   $                     -   $                   -   $                 -
                                                 $         439,500       $         447,950      $           449,425        $            40,730       $            42,371       $          449,425      $                 -


        Available Fund Balance - EOY             $          33,521       $          21,030      $                846       $          195,853        $          116,218        $           20,695      $          19,849
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                    12/31/16                 12/31/15
                                                                                                       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       $                    -   $                    -   $           33,700      $             (300)
         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                                                         -                       -                          -                 5,599                           -                5,600                   5,600
                                                   $          39,222       $          34,403       $             34,000       $             5,599      $                    -   $           39,300      $            5,300


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                    17,000                   19,000                  34,000                        -

                                                   $          38,000       $          36,000       $             34,000       $            17,000      $            19,000      $           34,000      $                 -



90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                         -                       -                          -                        -                        -                       -                     -
                                                   $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                   $          38,000       $          36,000       $             34,000       $            17,000      $            19,000      $           34,000      $                 -


        Available Fund Balance - EOY               $            2,051      $                 454   $                 51       $           (10,947) $               (16,949) $                5,754      $            5,703
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                    12/31/16                 12/31/15
                                                                                                       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        $                    -   $                    -   $           99,500      $         (60,500)
         Federal & state grants                                        -                       -                          -                                                 -                       -                     -
         State proposal A reimbursement revenue                        -                       -                          -                                                 -                       -                     -
         Charges for services                                          -                       -                          -                                                 -                       -                     -
         Interest income                                             565                     522                    400                       229                      185                     400                        -
         Operating transfers in - General Fund                70,000                 175,000                   175,000                     87,500                   87,500                 175,000                        -
         Operating transfers in - PIF                                  -                       -                          -                                                 -                       -                     -
         Operating transfers in - Insurance Fund                       -                       -                          -                                                 -                       -                     -
         Other                                                48,981                           -                          -                47,549                           -               47,500                 47,500
                                                   $         287,251       $         402,723       $           335,400        $          135,278       $            87,685      $          322,400      $         (13,000)


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                      9,910                   15,241                 335,000                     174

                                                   $         329,587       $         335,325       $           335,576        $             9,910      $            15,241      $          335,750      $              174



90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                         -                       -                          -                        -                        -                       -                     -
                                                   $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                   $         329,587       $         335,325       $           335,576        $             9,910      $            15,241      $          335,750      $              174


        Available Fund Balance - EOY               $          51,442       $         118,840       $             50,590       $          244,208       $          123,886       $          105,490      $          54,900
2Q 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                                                             2Q Reforecast       Increase (Decrease)               Comments
                                                                                                                       12/31/16                 12/31/15
                                                                                          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                   151,830                    61,599               1,300,000                        -
         Interest income                               2,837                 5,125                   2,000                       611                    2,852                   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                      5,000                           -              350,000                        - economic development and fire
                                                                                                                                                                                                               equipment replacement

                                          $         713,272     $       1,353,612     $         5,261,920        $          157,441       $            64,451      $        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    $                      -   $             3,823      $               212      $                   -   $                 -
5200      Operating Supplies                                -                     -                          -                14,817                           -                       -                     -
5300      Contractual Services                         6,692              114,995                            -                40,802                    5,763                          -                     -
5400      Other Expenses                                    -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                              5,730            2,006,435               4,494,550                   162,318                    70,402               4,494,550                        -

                                          $          17,162     $       2,123,605     $         4,494,550        $          221,760       $            76,377      $        4,494,550      $                 -

                                          $          17,162     $       2,125,591     $         4,591,550        $          221,760       $            76,377      $        4,591,550      $                 -


        Available Fund Balance - EOY      $       1,066,378     $         294,399     $            (31,052) $               230,080       $        1,054,452       $          964,769      $         995,821
2Q 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                                                             2Q Reforecast       Increase (Decrease)          Comments
                                                                                                                         12/31/16                 12/31/15
                                                                                            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                   163,089                            -              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        $          163,089       $                    -   $          203,297      $                 -



30936   Operating Expenditures
5100      Salaries & Benefits             $                   -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                  -                     -                          -                        -                        -                       -                     -
5300      Contractual Services                                -             194,859                 201,897                             -                        -              201,897                        -
5400      Other Expenses                                      -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                                     -                     -                          -                        -                        -                       -                     -
5900      Other Financing Uses                                -                     -                          -                        -                        -                       -                     -
                                          $                   -   $         194,859     $           201,897        $                    -   $                    -   $          201,897      $                 -



90000   Project Expenditures
5200      Operating Supplies              $                   -   $                 -   $                      -   $             3,004      $                    -   $                   -   $                 -

5300      Contractual Services                       20,845                  20,093                   20,093                    36,891                           -               20,093                        - LOAN REPAYMENT

5700      Capital Outlays                                     -                     -                          -                        -                        -                       -                     -

                                          $          20,845       $          20,093     $             20,093       $            39,895      $                    -   $           20,093      $                 -

                                          $          20,845       $         214,952     $           221,990        $            39,895      $                    -   $          221,990      $                 -



        Available Fund Balance - EOY      $          89,359       $          73,157     $             36,821       $          196,351       $            89,359      $           54,464      $          17,643
2Q 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                                                              2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                  12/31/16                 12/31/15
                                                                                                     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                   156,543                  163,924                   250,000                 20,000
         Interest income                                       1,168                   1,911                    1,200                       661                      920                    1,200                        -
         Operating transfers in                                       -                      -                          -                        -                         -                       -                     -

         Other                                                 7,865                 11,874                     4,000                     4,025                    2,982                    4,000                        -

                                                  $         256,806       $         289,459      $           610,200        $          161,229       $          167,826        $          255,200      $        (355,000)

70756   Operating Expenditures - Marina
5100      Salaries & Benefits                     $          26,387       $          29,623      $             31,049       $            11,949      $            12,244       $           31,049      $                 -
5200      Operating Supplies                                 13,013                    9,730                    8,700                     8,249                    4,121                   10,000                   1,300
5300      Contractual Services                              144,388                 163,262                  161,948                     91,027                   93,194                  161,948                        -
5400      Other Expenses                                              -                     39                    250                            -                        39                  250                        -
5700      Capital Outlays                                      2,515                   1,721                   22,300                    11,063                            -               35,000                 12,700
5900      Other Financing Uses                                        -                      -                          -                        -                         -                       -                     -
          Other Cash Uses (e.g. Debt Principal)            (145,003)                   7,189                            -                        -                         -                       -                     -
                                                  $          41,300       $         211,564      $           224,247        $          122,288       $          109,598        $          238,247      $          14,000


70759   Operating Expenditures - Ramps
5100      Salaries & Benefits                     $                   -   $                  -   $              1,000       $                    -   $                     -   $            1,000      $                 -
5200      Operating Supplies                                        467                2,358                    1,000                       923                      415                    1,000                        -
5300      Contractual Services                                 6,692                   4,974                   10,500                     2,792                    1,891                   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       $             3,715      $             2,306       $           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        $          126,003       $          111,904        $          250,747      $        (486,000)


        Available Cash Balance - EOY              $         375,988       $         402,917      $             88,180       $          438,143       $          431,910        $          407,370      $         319,190
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                                12/31/16                 12/31/15
                                                                                                   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                 1,328,580                1,133,800                2,368,700                        -
         Interest income                                     28,025                 17,343                   20,000                     7,887                    8,820                  20,000                        -
         Operating transfers in                                      -                     -                          -                        -                        -                       -                     -
         Other                                               64,193                 51,623                   36,000                    41,782                   23,950                  36,000                        -
                                                  $       2,316,776      $       2,437,769     $         2,424,700        $        1,378,249       $        1,166,570       $        2,424,700      $                 -


60932   Operating Expenditures
5100      Salaries & Benefits                     $         429,795      $         534,473     $           516,332        $          225,212       $          217,744       $          516,332      $                 -
5200      Operating Supplies                                901,987                831,413                 848,500                   347,934                  382,636                  848,500                        -
5300      Contractual Services                              808,005                853,847                 733,669                   329,669                  381,782                  733,669                        -
5400      Other Expenses                                            10                     -                  1,500                       319                           -                1,500                        -
5700      Capital Outlays                                   466,985                207,978                 771,500                   212,871                  173,952                  815,500                 44,000

5900      Other Financing Uses                                       -                     -                          -                        -                        -                       -                     -

          Other Cash Uses (e.g. Debt Principal)            (104,254)               (71,796)                           -                        -                        -                       -                     -
                                                  $       2,502,528      $       2,355,915     $         2,871,501        $        1,116,005       $        1,156,114       $        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        $        1,116,005       $        1,156,114       $        2,915,501      $          44,000


        Available Cash Balance - EOY              $         617,235      $         699,089     $           355,116        $          961,333       $          627,691       $          208,288      $        (146,828)
2Q 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                                                             2Q Reforecast       Increase (Decrease)   Comments
                                                                                                                               12/31/16                 12/31/15
                                                                                                  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                   524,567                  488,380                1,049,134                        -
         Interest income                                     3,073                   3,334                   2,700                     1,044                    1,682                   2,700                        -
         Operating transfers in                                     -                     -                          -                        -                        -                       -                     -
         Other                                            128,970                    5,830                           -                        -                 5,830                          -                     -
                                                $       1,217,332       $         985,924     $         1,051,834        $          525,611       $          495,892       $        1,051,834      $                 -


60442   Operating Expenditures
5100      Salaries & Benefits                   $         631,771       $         780,360     $           715,058        $          322,272       $          325,887       $          715,058      $                 -
5200      Operating Supplies                               29,270                  34,757                   31,000                     9,251                   27,216                  31,000                        -
5300      Contractual Services                            282,295                 288,240                 291,480                   112,371                  137,741                  291,480                        -
5400      Other Expenses                                          264                2,334                     750                       484                    1,789                     750                        -
5700      Capital Outlays                                  44,587                  59,872                   50,000                    27,608                   32,460                  50,000                        -
5900      Other Financing Uses                                      -                     -                          -                        -                        -                       -                     -
        Other Cash Uses and Adjustments (e.g.
                                                          (29,697)               (102,468)                           -                 1,324                      (685)                        -                     -
        Debt Principal)

                                                $         958,490       $       1,063,095     $         1,088,288        $          473,310       $          524,408       $        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        $          473,310       $          524,408       $        1,138,288      $                 -


        Available Cash Balance - EOY            $         691,971       $         614,800     $           517,699        $          667,101       $          663,455       $          528,346      $          10,647
2Q 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                                                               2Q Reforecast       Increase (Decrease)                Comments
                                                                                                                                12/31/16                  12/31/15
                                                                                                   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                     78,139                    85,550                  300,000                        -
         Interest income                                          229                     29                    250                            35                        26                  250                        -
         Operating transfers in                            75,000                  75,000                    13,000                             -                         -               13,000                        -   for GF activities/support services
         Other                                                      -                      -                          -                         -                         -                       -                     -
                                                $         312,003       $         325,211      $           313,250        $            78,174       $            85,576       $          313,250      $                 -


60447   Operating Expenditures
5100      Salaries & Benefits                   $         164,873       $         182,571      $           220,000        $            88,556       $            81,707       $          220,000      $                 -
5200      Operating Supplies                                 6,302                   6,443                    9,430                     1,508                     1,672                    9,430                        -
5300      Contractual Services                            143,907                 110,091                    90,000                    30,120                    57,554                   90,000                        -
5400      Other Expenses                                     1,493                 18,395                     2,000                            60                   750                    2,000                        -
5700      Capital Outlays                                    9,713                   6,326                   11,200                     5,104                     4,011                   11,200                        -
5900       Other Financing Uses                                     -                      -                          -                         -                         -                       -                     -
        Other Cash Uses and Adjustments (e.g.
                                                           16,172                 (31,232)                            -                         -                         -                       -                     -
        Debt Principal)
                                                $         342,460       $         292,594      $           332,630        $          125,348        $          145,694        $          332,630      $                 -


90000   Project Expenditures
5200      Operating Supplies                    $                   -   $                  -   $                      -   $                     -   $                     -   $                   -   $                 -
5300      Contractual Services                             20,888                  24,398                    10,000                    11,216                    12,210                   10,000                        -
5700      Capital Outlays                                           -                      -                          -                         -                         -                       -                     -
                                                $          20,888       $          24,398      $             10,000       $            11,216       $            12,210       $           10,000      $                 -
                                                $         363,348       $         316,992      $           342,630        $          136,564        $          157,904        $          342,630      $                 -


        Available Cash Balance - EOY            $          27,862       $          36,081      $             24,802       $           (22,309) $                (44,466) $                 6,701      $         (18,101)
2Q 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                                                             2Q Reforecast       Increase (Decrease)               Comments
                                                                                                                                 12/31/16                 12/31/15
                                                                                                    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                 1,714,100                1,729,654                3,760,000                        -
         Interest income                                   22,710                  22,402                     25,000                     9,516                   11,187                  25,000                        -
         Retireee Health Reimbursement                  1,050,787               1,177,563                 1,140,000                   274,487                  498,291                1,140,000                        -
         MMRMA dividend payment                                     -                       -                          -                        -                        -                       -                     -
         Operating transfers in                            14,023                           -                          -                        -                        -                       -                     -

         Other                                             12,420                    8,972                     9,000                       200                           -                9,000                        -

                                                $       4,295,870       $       4,652,798       $         4,934,000        $        1,998,303       $        2,239,132       $        4,934,000      $                 -


30851   Operating Expenditures
5100      Salaries & Benefits                   $          88,900       $         283,744       $             43,752       $            18,340      $            41,708      $           43,752      $                 -
5200      Operating Supplies                                        -                     180                    200                            -                   180                     200                        -
5300      Contractual Services                          4,246,717               4,255,839                 4,900,000                 2,087,971                2,232,847                4,900,000                        -
5400      Other Expenses                                     6,357                 10,433                     10,000                     5,178                    2,210                  10,000                        -
5700      Capital Outlays                                         425                       -                  2,645                       736                           -                2,645                        -

5900      Other Financing Uses                                      -                       -                          -                        -                        -                       -                     -

        Other Cash Uses and Adjustments (e.g.
                                                         (232,459)                 95,437                   327,000                             -                        -              327,000                        -   Addtl OPEB contribution for FY2017
        Debt Principal)

                                                $       4,109,940       $       4,645,633       $         5,283,597        $        2,112,225       $        2,276,945       $        5,283,597      $                 -


90000   Project Expenditures
5200      Operating Supplies                    $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                      -                       -                          -                        -                        -                       -                     -
5700      Capital Outlays                                           -                       -                          -                        -                        -                       -                     -
                                                $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                $       4,109,940       $       4,645,633       $         5,283,597        $        2,112,225       $        2,276,945       $        5,283,597      $                 -


        Available Cash Balance - EOY            $       1,694,944       $       1,702,109       $         1,453,783        $        1,588,187       $        1,657,131       $        1,352,512      $        (101,271)
2Q 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                                                   2Q Reforecast       Increase (Decrease)                 Comments
                                                                                                                          12/31/16             12/31/15
                                                                                                 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               175,800              282,991              1,000,000                        -
              State shared revenue                                   -                     -                   -                     -                    -                      -                        -
              Charges for services                           6,240,189             6,129,352           7,500,000             3,826,786            2,906,284              7,500,000                        -   1.49 multiplier x county rate FY17
              Interest income                                   16,106                10,413              15,000                 1,995                5,665                 15,000                        -
              Repayment of DDA advance                               -                     -                   -                     -                    -                      -                        -
              Operating transfers in                                 -                     -                   -                     -                    -                      -                        -
              Bond Proceeds                                          -                     -             300,000                     -                                     300,000                        -
              Other                                            139,834               185,171             140,000               101,594               93,251                140,000                        -
                                                     $       6,870,810     $       7,090,299 $         8,955,000 $           4,106,175 $          3,288,191 $            8,955,000 $                      -

     30548   Operating Expenditures Administration
     5100      Salaries & Benefits                   $               -     $               - $                 - $                    - $                  - $                   - $                      -
     5200      Operating Supplies                                    -                     -                   -                      -                    -                     -                        -
     5300      Contractual Services                            297,398               438,534             437,298                187,536              186,580               437,298                        -

     5400       Other Expenses                                  16,215                  8,969              12,000                        -                    (2)           12,000                        -

     5700       Capital Outlays                                        -                     -                      -                    -                     -                    -                     -
     5900       Other Financing Uses                                   -                     -                      -                    -                     -                    -                     -
             Other Cash Uses and Adjustments (e.g.
                                                                (17,927)            (258,944)                       -                    -                     -                    -                     -
             Debt Principal)

                                                     $         295,686     $         188,559 $           449,298 $              187,536 $            186,578 $             449,298      $                 -


     60559   Operating Expenditures Maintenance
     5100      Salaries & Benefits                   $         519,321 $             699,023 $           781,472 $              317,669 $            299,989 $             781,472 $                      -
     5200      Operating Supplies                               45,428                88,129              55,390                 42,245               20,110                55,390                        -
     5300      Contractual Services                            362,351               393,649             440,654                234,874              201,825               440,654                        -
     5400      Other Expenses                                   31,794                17,960              23,000                  9,091                7,880                23,000                        -
     5700      Capital Outlays                                   4,770                 4,571               5,900                    610                2,653                 5,900                        -
     5900      Other Financing Uses                                  -                     -                   -                      -                    -                     -                        -
                                                     $         963,664 $           1,203,332 $         1,306,416 $              604,489 $            532,457 $           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             2,395,658            2,219,889              6,000,000                        -
     5400      Other Expenses                                        -                     -                   -                     -                    -                      -                        -
     5700      Capital Outlays                                       -                     -                   -                     -                    -                      -                        -
     5900      Other Financing Uses                                  -                     -                   -                     -                    -                      -                        -
                                                     $       6,210,557 $           5,749,839 $         6,000,000 $           2,395,658 $          2,219,889 $            6,000,000 $                      -

     90000   Project Expenditures
     5200       Operating Supplies                   $               -     $               - $                 - $                    - $                  - $                   - $                      -
     5300       Contractual Services                           606,761               860,016           1,300,000                222,795              463,401             1,300,000                        -

     5700       Capital Outlays                                        -                     -                      -                    -                     -                    -                     -

                                                     $         606,761     $         860,016 $         1,300,000 $              222,795 $            463,401 $           1,300,000      $                 -
                                                     $       8,076,668     $       8,001,746 $         9,055,714 $           3,410,478 $          3,402,325 $            9,055,714      $                 -


             Available Cash Balance - EOY            $       2,339,749     $       1,428,302 $         1,256,452 $           2,123,999 $          2,225,615 $            1,327,588      $          71,136
2Q 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                                                             2Q Reforecast       Increase (Decrease)               Comments
                                                                                                                                             12/31/16                 12/31/15
                                                                                                                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                 1,838,314                1,613,920                3,499,250                        -
                         Charges for services - Wholesale               2,247,573             3,590,703               3,600,000                 2,076,419                1,862,942                3,600,000                        -
                         Maintenance services - Township                  185,399               119,509                 155,000                     50,350                   45,419                 100,000                (55,000)
                         Interest income                                   12,605                13,363                  11,000                      5,244                    6,491                  11,000                      -
                         Lease of facilities                              165,445               190,370                 173,000                     73,652                   96,062                 173,000                      -
                         Repayment of DDA advance                                 -                     -                          -                        -                        -                       -                     -
                         Operating transfers in                                   -                     -                          -                        -                        -                       -                     -
                         Other                                            222,994               318,427                 170,000                   143,981                  198,002                  170,000                        -
                                                                $       6,399,274     $       7,504,356     $         7,608,250        $        4,187,960       $        3,822,836       $        7,553,250      $         (55,000)


                30548   Operating Expenditures Administration
                5100      Salaries & Benefits                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
                5200      Operating Supplies                                      -                     -                          -                        -                        -                       -                     -
                5300      Contractual Services                            525,923               897,399                 932,085                   422,216                  405,859                  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                   120,259                  136,616                  246,500                        -   Water System Bond Interest
                        Other Cash Uses and Adjustments (e.g.
                                                                          977,712             1,731,091               1,405,000                             -                        -            1,405,000                        -   Water System Bond Principal
                        Debt Principal)

                                                                $       1,806,522     $       2,893,075     $         2,600,585        $          542,475       $          542,475       $        2,600,585      $                 -


                60559   Operating Expenditures Maintenance
                5100       Salaries & Benefits                  $         978,339     $       1,078,047     $         1,064,918        $          505,029       $          450,136 $              1,064,918      $                 -
                5200       Operating Supplies                             245,340               224,085                 231,500                   135,892                  136,587                  231,500                        -
                5300       Contractual Services                           430,854               375,383                 410,501                   204,908                  190,107                  410,501                        -
                5400       Other Expenses                                  44,867               129,850                 139,500                    38,324                   45,260                  139,500                        -
                5700       Capital Outlays                                 11,542                 7,000                  13,500                     6,516                    5,563                   13,500                        -
                5900       Other Financing Uses                                 -                     -                       -                         -                        -                        -                        -
                                                                $       1,710,942     $       1,814,365     $         1,859,919        $          890,669       $          827,653 $              1,859,919      $                 -



                60558   Operating Expenditures Filtration
                5100      Salaries & Benefits                   $         671,659     $         780,529     $           825,235        $          351,824       $          308,812 $                825,235      $                 -
                5200      Operating Supplies                              217,774               291,263                 315,000                   148,776                  125,481                  315,000                        -
                5300      Contractual Services                            534,397               648,968                 840,000                   268,422                  307,185                  840,000                        -
                5400      Other Expenses                                    3,603                 4,907                   6,500                       946                    1,201                    6,500                        -
                5700      Capital Outlays                                  59,027                44,454                  53,000                    14,209                   26,443                   53,000                        -
                5900      Other Financing Uses                                  -                     -                       -                         -                        -                        -                        -
                          Replacement Reserve - DWRF                            -                     -                       -                         -                        -                        -                        -
                                                                $       1,486,460     $       1,770,121     $         2,039,735        $          784,177       $          769,122 $              2,039,735      $                 -

                90000   Project Expenditures
                5200       Operating Supplies                   $               -     $               -     $                 -        $                -       $                -       $                -      $               -
                5300       Contractual Services                           905,448               793,616               1,080,000                   133,205                  641,639                1,052,000                (28,000)
                5700       Capital Outlays                                      -                     -                       -                         -                        -                        -                      -
                                                                $         905,448     $         793,616     $         1,080,000        $          133,205       $          641,639       $        1,052,000      $         (28,000)
                                                                $       5,909,372     $       7,271,177     $         7,580,239        $        2,350,526       $        2,780,889       $        7,552,239      $         (28,000)

                        Available Cash Balance - EOY            $       3,146,513     $       3,379,692     $         3,658,483        $        5,217,126       $        4,188,460       $        3,380,703      $        (277,780)
             2Q 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) 2Q                        Revenue 2Q
                                                                                                                         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

       Roof Repairs at L C Walker Arena                         Al-Shatel                        -                25,000                -                     -

       City Hall bidg wash / seal                               Al-Shatel                        -                30,000                -                     -

                                                                                           325,000               395,000                -                     -

 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 $400,000 from HPP local
       Laketon Ave. Getty to Creston                            Al-Shatel                1,800,000              1,800,000       1,150,000           1,150,000
                                                                                                                                                                                          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
            2Q 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) 2Q                      Revenue 2Q
                                                                                                                                 Revenue Original
                                                                                           Original              Reforecast                          Reforecast


                                                                                      BUDGETED MAJOR CAPITAL PROJECTS
 264   Criminal Forfeiture Fund

       Tactical Video Investigation, interview equipment               J. Lewis                     13,500                13,500                -                   -                         additional equipment

                                                                                                    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

       Fire Department, AFG Equipment                                  J. Lewis                     91,700                91,700           83,370           83,370      FY17                 only if grant is received

       Fire Department Equipment                                       J. Lewis                     26,300                26,300                                                      Life Pak & standalone AED generator

       Commecial/Industrial Demolitions                             Brubaker-Clarke                300,000               300,000                                                                Blight fight efforts
                                                                                                                                                                                Four Season Air Craft, reduced the amount used for
       Fire Department - Gear (Rescue Boat)                            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
               2Q 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) 2Q                          Revenue 2Q
                                                                                                                                        Revenue Original
                                                                                                  Original              Reforecast                              Reforecast


                                                                                             BUDGETED MAJOR CAPITAL PROJECTS
         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

         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
                                                                                                                                                                                                No grant applied for this FY. Will wait until grant
         Docks & Building Improvements (office, bathroom)                      Al-Shatel                  500,000                      -         375,000                       -       FY17
                                                                                                                                                                                                           application is submitted.
                                                                                                          500,000                      -         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
            2Q 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) 2Q                              Revenue 2Q
                                                                                                           Revenue Original
                                                                     Original              Reforecast                                  Reforecast


                                                                BUDGETED MAJOR CAPITAL PROJECTS
                                                                                                                                                                       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

       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 / SUVs *                   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   $         11,582,050   $   3,999,070       $         3,624,070

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