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City of Muskegon
City Commission Meeting
Agenda
January 10, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
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MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440
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Pages
1. Call To Order
2. Prayer
3. Pledge of Allegiance
4. Roll Call
5. Honors, Awards, and Presentations
5.a Audit Presentation - ACFR
6. Public Comment on Agenda Items
7. Consent Agenda
7.a Approval of Minutes - City Clerk 1
7.b Lakeshore Creative Services, LLC - City Clerk 24
7.c Transmittal of 6/30/22 Annual Comprehensive Financial Report - Finance 27
7.d Michigan Homeowner Assistance Fund (MIHAF) Applicaiton - City Treasurer 201
7.e Leads Online - Public Safety 215
7.f Towing Agreement - Public Safety 242
7.g Janitorial Contract - Arena 256
7.h Boys & Girls Club Agreement - Public Works 264
7.i Community EnCompass Agreement - Public Works 272
7.j CLG Grant Application - Public Works 280
7.k Treasury Office Fire Doors - Public Works 302
7.l Dollar General Utility Easement - Public Works 308
7.m Street Vacation - Portion of Viridian Drive, East of Terrace Street - Planning
7.n Sale of 1320 Spring Street - City Manager 314
7.o Sale of 750 Leonard Avenue - City Manager 321
7.p Sale of 1499 Hoyt Street - City Manager 328
8. Public Hearings
8.a Brownfield Plan Amendment, 1st Amendment, Adelaide Pointe QOZB, LLC 335
9. Unfinished Business
10. New Business
11. Any Other Business
12. Public Comment on Non-Agenda items
13. Closed Session
14. Adjournment
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the November 22, 2022 Regular Meeting, December
12, 2022 Worksession, and December 13, 2022 Regular Meeting.
Detailed Summary: N/A
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the minutes.
For City Clerk Use Only:
Commission Action:
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C I T Y O F M U S K E GO N
CITY COMMISSION MEETING
N O V E M B E R 2 2 , 2 0 2 2 @ 5 : 3 0 P. M .
MUSKEGON CITY COMMISSION CHAMBERS
9 3 3 T E R R AC E S T R E E T, M U S K E GO N , M I 4 9 4 4 0
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933
Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, November 22, 2022,
Reverend D.W. Tolbert, New Hope Baptist Church, opened the meeting with a prayer,
after which the Commission and public recited the Pledge of Allegiance to the Flag.
Present: Mayor Ken Johnson, Commissioners, Rebecca St.Clair, Rachel Gorman, Michael
Ramsey, Interim City Manager LeighAnn Mikesell, City Attorney John Schrier, and City
Clerk Ann Meisch.
Absent: Vice Mayor Willie German, Jr., Commissioners Eric Hood and Teresa Emory
HONORS, AWARDS, AND PRESENTATIONS:
A. Years of Service Award/Recognition
The Mayor and Commissioners congratulated and thanked city employees for various
levels of years of distinguished, loyal service. Certificates of Appreciation were presented
to those employees that were in attendance.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2022-99 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the October 25, 2022 Regular
Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Sale – 522 Ottawa Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the City owned
unbuildable vacant lot to West Urban Properties, LLC.
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West Urban Properties LLC would like to purchase the City owned unbuildable lot to
join with the property adjacent to it in order to construct commercial structure(s) on
the lots (once combined) within eighteen (18) months. The property is zoned B-4
(General Business). The buyer made an offer of $5,625 which is less than 75% of the
True Cash Value (TCV). If this were a buildable lot; then the asking price would be
$11,250. There has been no interest in developing this property. The City has owned
this property since 1983. There are easements on this property for the vacated
Giddings Avenue as well as a telephone company easement.
STAFF RECOMMENDATION: To authorize the Code Coordinator to work with the
developer and complete the sale of the City-owned buildable lot as described and to
have the Mayor and Clerk sign the purchase agreement and deed.
C. Sale – 754 Leonard Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the city-owned
home at 754 Leonard in Jackson Hill to Nicole R. Blackshire.
The city is constructing a single-family detached home as part of our ARP infill housing
program with Mr. Rubin Briggs and LRS Enterprises. Our contract to construct six homes
was for $1.5 million, and the estimated finished costs of this home will be $235,000. We
also anticipated $10,000 in sales commissions. The accepted purchase price is $220,000,
and the incurred sales commissions are $10,000. The City will not contribute funds
toward closing costs outside of seller’s agent commission.
STAFF RECOMMENDATION: To authorize the Code Coordinator to complete the
sale of 754 Leonard Street, as described in the purchase agreement and for the Mayor
and Clerk to sign the deed.
D. CSX Rail Line Acquisition City Manager
SUMMARY OF REQUEST: Staff is requesting that Commission authorize an extension
to the closing deadline for the acquisition of the CSX Rail Line Property.
CSX is working on their contracted due diligence period for the closing of the Rail Line
property and has requested an extension. The City Attorney’s Office has prepared the
attached amendment that has been mutually agreed upon.
STAFF RECOMMENDATION: To approve the Amended Closing Agreement as
presented and authorize the Mayor and Clerk to sign.
E. Stormwater Maintenance Agreements Public Works
SUMMARY OF REQUEST: Staff seeks authorization to enter into stormwater
maintenance agreements with two recent property owners, Newkirk Electric and Pioneer
Resources, in accordance with the recently adopted stormwater ordinance.
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The recently adopted stormwater ordinance requires that private developers subject
to the rules enter into an agreement with the City. The agreement requires them to
maintain their private stormwater system in perpetuity, because it connects to the
City’s system and good maintenance of the private system ensures problems do not
migrate downstream and become the City’s problems. Previously, developers
subject to the rules were required to enter into these agreements with the County
Drain Commissioner’s Office; as a part of taking over management of our own
stormwater ordinance, the City must now be a party to the agreements. We are
required to enter into these agreements as a part of our responsibilities to the
Michigan Department of Environment, Great Lakes and Energy (EGLE).
Two developments have gone through reviews under the City’s rules during the
transition process, and now seek to close out their stormwater permitting by
completing the agreements. They are Newkirk Electric located at the corner of
Roberts and Laketon, and Pioneer Resources, located at the corner of Roberts and
Wesley.
The agreements, if approved, will be recorded at the County Register of Deeds and
include requirements to make sure the property owner maintains the system and
provides records of that maintenance to the City. EGLE will audit the City
occasionally to make sure the maintenance and records are according to procedure.
Staff also seeks guidance as to whether the Commission would like these agreements to
continue to come to Commission for approval, or if staff should develop a policy that
authorizes an appropriate staff member to be designated to enter into these
agreements on behalf of the City.
STAFF RECOMMENDATION: To authorize staff to enter into stormwater
maintenance agreements with Newkirk Electric and Pioneer Resources in accordance
with the recently adopted stormwater ordinance.
G. Amendment to Marihuana Overlay District – Drive Thrus/Signs 2nd Reading
Planning
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2331 of the zoning
ordinance to reduce signage restrictions on marihuana businesses and to allow drive-
thru marihuana facilities under certain conditions.
After discussing the proposed ordinance at the Planning Commission meeting, the
board decided to slightly modify the proposal and request that all drive thru’s
require a special use permit. The final language approved in the motion is as follows:
Section 2331:
B. Grower, Excess Grower, and Processor Requirements:
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1. Signage. Signage shall follow the regulations set forth by the underlying
zoning district.
C. Provisioning Center, Retailer, Microbusiness and Designated Consumption
Establishment Requirements:
1. Signage. Signage shall follow the regulations set forth by the underlying
zoning district.
4. Curbside/Drive Thru. Curbside delivery is allowed at all retail sale locations
with an approved site plan that does not impede traffic or pedestrian
safety. Drive thru’s are allowed as a special use permitted under the
following conditions:
a. The underlying zoning designation must be B-2, B-4, MC, I-1, I-2 or
any Form Based Code designation/building type that allows for drive
thru businesses.
b. Drive-thru windows must be located on private property. Streets and
alleys may only be used for the movement of traffic and may not be
used for drive-thru vehicular stacking.
c. A traffic study must be performed showing anticipated number of
stacking spaces and where they would be located on site.
STAFF RECOMMENDATION: To approve the request to amend Section 2331 of the
zoning ordinance to reduce signage restrictions on marihuana businesses and to allow
drive-thru marihuana facilities with the conditions listed as proposed.
Motion by Commissioner Ramsey, second by Commissioner Gorman, to accept the
consent agenda as presented, minus item F.
ROLL VOTE: Ayes: Johnson, Ramsey, Gorman, and St.Clair
Nays: None
MOTION PASSES
2022-100 REMOVED FROM CONSENT AGENDA:
F. MDNR Conversion Assistance Public Works
SUMMARY OF REQUEST: Staff requests authorization to enter into a Professional
Services Agreement with Ramboll for assistance in resolving the conversion of several
grant-encumbered recreation properties throughout the City.
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The Adelaide Pointe and Hartshorn Village projects are going to impact grant-
encumbered recreation properties in the form of Hartshorn Marina and the Lakeshore
Trail. As those development projects progress, the city will need to work with the
MDNR and the National Park Service to ensure that the impacts to those and other
encumbered properties are properly mitigated.
The MDNR manages this process on the state level and terms this as a “conversion,”
wherein an area that is encumbered for public outdoor recreation is converted into
another use. The encumbered area that is converted into non-recreation space must
be replaced by an equal or greater value area that is newly dedicated to public outdoor
recreation.
The MDNR allows for multiple conversions to be resolved concurrently. As such, we
have requested assistance with other potential conversion properties, such as the Third
Street Wharf, Fisherman’s Landing and Mid-Michigan Railroad Muskegon Lake south
spur properties so that we may reach a more complete resolution that mitigates the
possibility of future conversions.
No one on city staff has experience working through the multi-step process proscribed
by the MDNR, so we have requested solicit proposals from interested firms to provide
us technical assistance and experience in navigating the complex process.
Upon reviewing the proposals, it was clear that the first half of the MDNR-proscribed
process is quite different from the second half. The first half involves identifying
potential candidate new recreation properties and discussing their value with the
MDNR, while the second half involves detailed appraisals and environmental work on
properties that have been determined good candidates. To that end, staff recommends
award only of the first half of the process at this time. This will help to ensure
expensive appraisal and environmental services are only invested in good candidates,
and will allow staff to more accurately budget for the second half of the process in the
next fiscal year.
Staff is requesting to award the services for the first half of the process to Ramboll, the
highest scoring firm. Staff scored the proposals using Qualifications Based Selection
criteria to ensure we were selecting the best partner for this important project. The
scoring showed Ramboll as the leading firm, and staff recommends contracting with
them based on their proposal and their history of service. Ramboll has provided
engineering services for partner organizations in the past, including award-winning
service to WMSRDC for the Amoco Fish and Wildlife Habitat Restoration Project near
the west end of Laketon Ave, which included repairs to the Lakeshore Trail from high
water damage.
As was noted in July when the RFP for these services was presented to the Commission:
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This item was not included in the FY22-23 budget due to the unknown timelines
for the development of the Adelaide Pointe and Hartshorn Village properties.
With development now moving forward quickly, the properties are already
considered to be under conversion by the MDNR, and this process needs to
move forward to begin to resolve them.
Entering into the conversion process will effectively eliminate the City from
consideration for most MDNR grant programs until such time that the
conversion is satisfactorily resolved. This does not include the Spark grant
program, which does not have scoring implications for being in an active
conversion.
The conversion process is expected to take at least a year to complete as some of the
impacted properties are encumbered through the National Park Service and require
federal concurrence.
AMOUNT REQUESTED: $58,501
FUND OR ACCOUNT: 101-770 (Parks Maintenance)
STAFF RECOMMENDATION: Authorize staff to enter into a Professional Services
Agreement with Ramboll for assistance in resolving the conversion of several grant-
encumbered recreation properties throughout the city.
Motion by Commissioner St.Clair, second by Commissioner Gorman, to authorize
staff to enter into a Professional Services agreement with Ramboll for assistance in
resolving the conversion of several grant-encumbered recreation properties
throughout the city.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, and Ramsey
Nays: None
MOTION PASSES
2022-101 NEW BUSINESS:
A. First Quarter Budget Reforecast Finance
SUMMARY OF REQUEST: At this time staff is asking for approval of the 1st Quarter
Budget Reforecast for the FY2022-23 budget year.
Staff has prepared the 1st Quarter Budget Reforecast memo outlining some of the
highlights is attached and supporting documentation.
STAFF RECOMMENDATION: To approve the 1st Quarter FY 2022-23 Budget
Reforecast as presented.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve
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the 1st Quarter FY 2022-23 Budget Reforecast as presented.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, and Ramsey
Nays: None
MOTION PASSES
ANY OTHER BUSINESS:
Commissioner St.Clair recognized the clerk and staff as well as other city staff that
helped with the election. Mayor Johnson expressed the commission’s appreciation to
Interim City Manager, LeighAnn Mikesell, as this will be her last meeting as Interim.
Mayor Johnson invited all to the house swearing-in ceremony for Jonathan at 9:00 a.m.
with light refreshments. The Mayor also invited all to participate in the Christmas Tree
Lighting on Saturday, November 26, 2022 at 5:15 at Hackley Park.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:46 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Monday, December 12, 2022
5:30 pm
City Commission Chambers
MINUTES
Present: Commissioners Hood, Emory, Johnson, Gorman, and German.
Absent: Commissioners St. Clair and Ramsey.
Kris Collee - AgeWell Services – Presentation Regarding Senior Millage
Kris Collee gave a presentation regarding the services AgeWell Services offer through the
Senior Millage program.
Long Term Goals Review
City staff has made great strides working on long term goals. The goals were approved in July
2022. Deputy City Manager LeighAnn Mikesell listed many projects that staff from all
departments has been assisting with in the areas of destination community & quality of life,
economic development, housing, and business, community connection, and financial
infrastructure.
Muskegon Ordinance & Muskegon Social Equity Program Update
Staff is seeking guidance in the following areas:
How to spend this years Education/Hard Reduction funds
How to spend 2021 & 2022 Expungement Clinic funds
How to roll over unused funds from previous years
How to advertise for scholarships
Direction for 2023 funds
Mike Franzak reviewed the current guidelines and offered some suggested changes for
tomorrow’s Commission meeting.
The Commission discussed possibly doing a Request For Proposal for an expungement clinic
and that the service be offered completely for free to any City of Muskegon resident. The RFP
will be presented to the City Commission the first meeting in January.
The Commission would like to see education to younger people possibly through the school
system and to provide discussion about the recreational use and possible repercussions with
employment.
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Crayton Goins, with Greenwood Gardens, 1839 Peck Street, would be willing to provide higher
learning state-certified training and have offered to split the cost of the training with the City of
Muskegon.
This item will be on the December 13, 2022 Commission meeting for consideration.
Brownfield and Infill Housing Presentation
Jake Eckholm presented a powerpoint presentation on the infill housing program. Most of the
parcels and houses have been placed in the City’s Brownfield Plan Amendment to recover costs
and losses related to the program. The City also uses Tax Increment Financing that allows
municipalities to withhold and retain other taxing jurisdictions funds for eligible expenses.
Any Other Business
Commissioner Emory indicated she has received several complaints of residents receiving
parking tickets at Grand Trunk. She has been told this is for paid parking only for ice fishermen
in the winter time.
The parking stickers are currently not available. Citizens may purchase a voucher for a sticker
that can be turned in at a later date.
Public Comments
None.
Adjourn.
Moved by Commissioner Hood, seconded by Commissioner Emory to adjourn the meeting at
6:59 pm
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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C I T Y O F M U S K E GO N
CITY COMMISSION MEETING
D E C E M B E R 1 3 , 2 0 2 2 @ 5 : 3 0 P. M .
MUSKEGON CITY COMMISSION CHAMBERS
9 3 3 T E R R AC E S T R E E T, M U S K E GO N , M I 4 9 4 4 0
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933
Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, December 13, 2022, Reverend
Diane Stark from Unity of Muskegon, opened the meeting with a prayer, after which the
Commission and public recited the Pledge of Allegiance to the Flag.
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners Rachel
Gorman, Michael Ramsey, and Teresa Emory, City Manager Jonathan Seyferth, City
Attorney John Schrier, and City Clerk Ann Meisch.
Absent: Commissioners Michael Ramsey and Rebecca St.Clair
HONORS, AWARDS, AND PRESENTATIONS:
A. Recognition of 9/11 Event Participants by BSA Troop 1053
Dave Paulson, Scout Master of Troop 1053, and Eagle Scout Parker Macjewski presented
certificates of Appreciation and Recognition to participants from two separate 9/11
events that were held at the USS LST 393 and USS Silversides. Those recognized
included Mayor Johnson, 92nd District State Representative Terry Sabo, 34th District
State Senator Jon Bumstead, Master of Ceremonies, James Flood, and Petty Officer First
Class Jeff Fisher. An appreciation certificate and event patch were presented to each
participant that was in attendance. All are invited to attend the events next year on
September 11, 2023 at both the USS LST 393 and USS Silversides.
B. Recognition of Muskegon Police Officers
Public Safety Director, Chief Tim Kozal, recognized three officers of the Muskegon Police
Department - Mike Lamsma promoted to Sergeant in 2018 and recently retired.
Sergeant John Burns, promoted to his current position on December 22, 2022. Officer Al
Hairston received the Black Magic Award from the Young Black Professionals Group on
November 28, 2022 for serving as a positive role model.
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C. New Staff Introductions – Planning & Economic Development
Jake Eckholm, Development Services Director, introduced Contessa Hood, Development
Analyst, a new hire in the department. Contessa was born and raised in Muskegon,
graduated from Reeth's Puffer and Central Michigan University and is excited to be here
after being away from Muskegon for several years.
D. Resolution Presentation to Leo Evans, Outgoing Director of Department of
Public Works
Mayor Johnson presented Leo Evans, Department of Public Works Director, with a
resolution recognizing his service to the City of Muskegon. We all wish him the best at
his new position in Colorado.
PUBLIC COMMENT ON AGENDA ITEMS: No public comments received.
2022-103 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the November 7, 2022
Worksession Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Sale of 1318 Pine Street City Manager
SUMMARY OF REQUEST: Staff is requesting approval of the purchase agreement for
1318 Pine Street.
1318 Pine Street was constructed through the agreement with Dave Dusendang to
construct infill housing with ARPA funding.
STAFF RECOMMENDATION: To approve the purchase agreement for 1318 Pine
Street.
D. Non-Union Part Time & Limited Term Wage Matrix EEO & Employee
Relations
SUMMARY OF REQUEST: This is the proposed non-union, part-time and limited-term
wage matrix for 2023.
STAFF RECOMMENDATION: Approve the non-union, part-time and limited-term
wage matrix for 2023.
E. Amendments to the Muskegon Social Equity Program Application
Planning
SUMMARY OF REQUEST: Request to amend the programs and the requirements for
the Muskegon Social Equity Program and associated application.
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Changes include:
Clarified how much funding an applicant may receive (Up to $10,000 unless
approved by the Commission).
For “Education/Training Scholarship”, “Business Start-Up Grant” and “Business
Start-Up Loan”, added a stipulation that a parent could also have had the
conviction while the applicant was in school.
Created a new category, the “Marihuana Industry Training Scholarship”. This is for
residents that want to get into the marihuana industry. There are more options to
qualify for this than the “Education/Training Scholarship.”
Removed the “Marihuana Equipment Grant” category since it could be covered
by the “Business Start-Up Grant.”
STAFF RECOMMENDATION: To approve the changes to the Muskegon Social
Equity Program and associated application as presented.
F. Roberts Street Reconstruction Award Public Works
SUMMARY OF REQUEST: Staff is requesting approval of a contract with McCormick
Sand, Inc. in the amount of $828,230.30 for the reconstruction of Roberts Street from
Sherman to Laketon, with $372,703.61 being covered by a TEDF Category F grant from
MDOT.
On November 7, 2022, Commission approved a grant agreement with MDOT that
awarded up to $375,000 to the City for a Transportation Economic Development Fund
(Category F) Grant, with the specific amount being 45% of the construction contract.
The City received bids on November 28, 29022, and McCormick Sand, Inc. was the low
bidder at $828,230.30. The grant, at 45%, will cover $372,703.64 of the project cost,
leaving $455,526.66 for the City to pay out of the highway fund. The bids came in
substantially below the estimate, so this request is for over $200,000 less than was
authorized at the time of the grant agreement. McCormick Sand has performed
admirable for the City in the past, and staff recommends award.
AMOUNT REQUESTED: $455,546.66 AMOUNT BUDGETED: $825,000 Requested
$31,880.07 Expended
$793,119.93 Remaining
FUND OR ACCOUNT: 202 (Major Streets)
STAFF RECOMMENDATION: Approval of the contract with McCormick Sand, Inc. in
the amount of $828,230.30 for the reconstruction of Roberts street from Sherman to
Laketon.
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I. Muskegon Conservation District (MCD) Native Planting Project
Public Works
SUMMARY OF REQUEST: Staff is requesting a letter of support and commitment of
matching funds to support a joint initiative with the Silversides Museum and the
Muskegon Conservation District for a native planting project.
The Silversides Museum has worked with the City and Muskegon Conservation District
(MCD) to identify several areas surrounding the museum campus that they would like to
see converted into native plantings. Much of the area is currently maintained as lawn
and provides limited recreational/pollinator value while requiring routine maintenance
to maintain. The conversion of these areas to native plantings would achieve all of the
goals outlined on page 2 of the 2018 Urban Pollinator Habitat Plan. This area was not
specifically identified in the 2018 plan, however most of the areas that were identified
have already been accomplished or have run into obstacles that have prevented or
delayed implementation.
The project has received a letter of support from the Silversides Museum who is
currently responsible for the maintenance of a portion of the designated area, and is
also supported by City staff that maintain the remainder of the area. Staff from the
Silversides Museum has also engaged the Beachwood-Bluffton Neighborhood
Association and has solicited a letter of support from that group. Staff from the
Silversides Museum will also be engaging with the six (6) residents along Channel Drive
regarding the conversion of the property across from them.
MCD is currently in the process of applying for a grant through the Wildflower
Association of Michigan to partially fund this project and is seeking a formal letter of
support from the City, authorization to use the property (City is the underlying land
owner of all the impacted property), and a commitment of up to $4,500 in matching
funds to support the invoiced implementation costs. In addition, the city will provide in
kind services to support the implementation should the grant be successful by assisting
with yard waste removal and cleanup on the site. A majority of the work will be
completed by MCD staff with assistance from volunteer groups organized through the
Silversides Museum.
Though this project was not specifically identified in the initial budget drafting the
expense is relatively small and staff is comfortable that it can be allocated within the
existing Parks budget with minimal to no adverse impacts.
AMOUNT REQUESTED: $4,500 AMOUNT BUDGETED: $0
FUND OR ACCOUNT: 101-770 (Parks Maint)
STAFF RECOMMENDATION: To authorize the DPW Director to sign the letter of
support, the grant authorization and the property access letter, the MCD Cooperator
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Agreement and commit up to $4,500 in matching funds towards the project
implementation should the grant be successful.
J. MDNR SPARK Grant Resolution Public Works
SUMMARY OF REQUEST: Staff is requesting approval of the resolution for inclusion
with our SPARK Grant Application due on December 19, 2022.
Staff has been working to identify a potential target project for the newly established
MDNR SPARK Grant program and based on previous staff recommendation and
commission action staff is working towards submitting a packet related to
reconstruction of the Muskegon Splash Pad.
An RFP was issued and proposals received from interested firms on Tuesday, November
29th. Staff is working to vet and shortlist the submitted proposals so they can be
presented to the commission and community for feedback in help determining the best
proposal for the site.
Given that the design and selection is not yet finalized at the application deadline, staff
is pursuing a grant in the amount of $250,000 and proposing that the remaining cost be
provided by the city as a local match. This creates a variable match amount ranging
from $23,913.00 to $218,300 depending on which design is selected to pursue.
Application packets are due on December 19th, 2022 with an expected quick turn around
and announcement of the first-round recipients in January 2023. If the project is not
successful in the first round of funding it will be automatically enrolled for consideration
in future rounds of funding.
If the project is selected for funding in the first round it is possible that construction
could take place as quickly as the Spring/Summer of 2023.
AMOUNT REQUESTED: $23,913 - $218,300 AMOUNT BUDGETED: $0
FUND OR ACCOUNT: TBD
STAFF RECOMMENDATION: Approve the resolution and authorize the Clerk to
sign.
K. Non-Union Pay/Benefits 2023 City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the 2023 non-union employee
wage and benefit program.
CPI is 8.5% this year. A review and comparison of past increases to union and non-union
staff is noted below.
2021: union staff received from 1% - 3% increases with an average of 2.1%
Non-union staff received 0% plus a $500 lump sum payment
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2022: union staff received from 1% - 14.5% increases with an average of 4.6%
Non-union staff received a 2% wage increase plus a 0.5% lump sum payment
2023: union staff will receive from 0% - 16% increases with an average of 5.6%
Between 2020 and 2023, union staff have received an average of 11.2% in wage
increases while non-union staff have received 2%.
We are seeking approval of the following:
8% wage increase
AMOUNT REQUESTED: $3,536,331.47 AMOUNT BUDGETED: $3,400,072.55
STAFF RECOMMENDATION: To approve the 8% wage increase for non-union staff
effective January 1, 2023.
L. Virtual Public Participation Policy City Clerk
SUMMARY OF REQUEST: To adopt a virtual public participation policy.
The Legislative Committee requested a policy be drafted allowing citizens the ability too
call in to make comment on any meeting played live on social media or television.
For any other meetings that fall under the Open Meetings Act, citizens must submit a
request at least tow business days in advance. A zoom link will be provided to those
individuals. They will have the ability to give up to three minutes of public comment.
STAFF RECOMMENDATION: To adopt the Virtual Public Participation Policy as
presented.
M. Conservation Easement Agreement at Remembrance Drive Site Development
Services
SUMMARY OF REQUEST: Staff is requesting that Commission authorize a conservation
easement agreement between the City of Muskegon and James Street Capital, owner of
the 500,000 square foot warehousing facility that is operated by KL Outdoors.
During the planning and construction of the large warehousing building in 2017 and
2018, MDEQ (now EGLE) cited a small piece of regulated wetland and the build-site. The
Developers at the time requested that the city consider allowing a conservation
easement on an adjacent, non-buildable city-owned parcel. This was principally agreed
upon by all parties as a logical solution, but never completed. The agreement codifies
the easement and completes the wetland mitigation process for this development.
Attached in this item is the easement agreement signed by the current owners of KL
Outdoor, a letter from the city manager’s office allowing a mitigation study and
easement due diligence on our property, and an aerial photo illustrating the impacted
wetland (which is now built on) in red and the proposed easement area in blue.
Page 6 of 13
16
STAFF RECOMMENDATION: To approve the Conservation Easement Agreement as
presented and authorize the Mayor and Clerk to sign.
O. CRC Recommendation Regarding Attendance Policy City Clerk
SUMMARY OF REQUEST: The CRC recommends making amendments to have a set
number of excused and unexcused absences that is the same for all boards within the
Community Relations Committees. The number of absences would be different
depending on how often the board meets.
The CRC recommends making amendments to have a set number of excused and
unexcused absences that is the same for all boards within the Community Relations
Committees. The number of absences would be different depending on how often the
board meets.
Meetings that meet monthly:
Not more than 3 Unexcused missed meeting during the year.
Not more the 4Excused/Absent missed meetings during the year.
Meetings that meet quarterly:
Not more than 1 Unexcused missed meeting during the year.
Not more the 2 Excused/Absent missed meetings during the year.
Meetings the meet semiannually:
Not more than 1 Unexcused missed meeting during the year.
Not more the 1 Excused/Absent missed meeting during the year.
Meetings that meet annually
No Unexcused or Excused missed meetings permitted.
Definition of Terms:
Unexcused – Does not notify Board Liaison of absence and does not attend meeting.
Excused – Notifies Board Liaison of absence at least 72 hours in advance of missed
meeting.
Absent – Reserved for emergency situations and up to the discretion of the Board
Liaison and Community Relations Committee members.
STAFF RECOMMENDATION: To concur with the Community Relations Committee
and adopt the revised Attendance Policy.
P. CRC Recommendation Regarding Reappointments to BID BoardCity Clerk
SUMMARY OF REQUEST: To concur with Community Relations Committee on
Page 7 of 13
17
reappointments to Business Improvement District Board.
The CRC recommends reappointing Bruce Lindstrom and Bob Tarrant – Assessed
property owners or their representatives – Terms Expiring 12/31/2025, to the Business
Improvement District.
STAFF RECOMMENDATION: To approve the reappointments.
Motion by Commissioner Gorman, second by Commissioner Emory, to accept the
consent agenda as presented, minus items C, G, H, and N.
ROLL VOTE: Ayes: Johnson, Hood, German, Gorman, and Emory
Nays: None
MOTION PASSES
2022-104 REMOVED FROM CONSENT AGENDA:
C. Good Temps Staffing Services Extension EEO & Employee Relations
SUMMARY OF REQUEST: The City is requesting an extension for the Good Temps
Staffing Service Agreement of one year. This agreement will be from January –
December, 2023.
STAFF RECOMMENDATION: To approve the one-year extension of the Good
Temps Staffing Service Agreement for 2023.
Motion by Commissioner Gorman, second by Commissioner Emory, to approve the
one-year extension of the Good Temps Staffing Service Agreement for 2023.
ROLL VOTE: Ayes: Johnson, Hood, German, Gorman, and Emory
Nays: None
MOTION PASSES
G. Hartshorn Marina 2023 Rates Public Works
SUMMARY OF REQUEST: Staff is seeking Commission approval to set the 2023 Rates
for Hartshorn Municipal Marina.
Staff is proposing to set the rates at Hartshorn Marina for the 2023 season as follows,
these rates are also currently under the review b MDNR for the 2023 season as follows,
these rates are also currently under review by MDNR for their concurrence as a Grant-
In-Aid Harbor which we are obligated to operate as through the 2024 boating season.
30 FT Slip = $2,580 (2022 Rate = $2,310)
40 FT Slip = $3,440 (2022 Rate = $3,080)
60 FT Slip = $4,620 (2022 Rate = $4,080)
Page 8 of 13
18
Mooring Field = $583 (2022 Rate $583
Transient = Range H (2022 Rate = Range G)
This is the first fee adjustment that has been proposed since the 2019 season. The
marina was closed in 2020, and the rates shown above for 2022 were also used during
the 2022 season.
It should be noted that since the loss of the T-Dock and the small boat basin following
the high-water cycles there has been limited to no availability for transient slips. All of
the 77current slips are slated for seasonal slip holders and roughly half of the mooring
field is reserved on an annual basis.
FUND OR ACCOUNT: 594
STAFF RECOMMENDATION: Approve the 2023 user fee rates as proposed for
Hartshorn Marina provided the proposed rates are also approved by the Michigan
Department of Natural Resources (MDNR).
Motion by Commissioner Emory, second by Vice Mayor German, to approve the
2023 user fee rates as proposed for Hartshorn Marina provided the proposed rates
are also approved by the Michigan Department of Natural Resources (MDNR).
ROLL VOTE: Ayes: Hood, German, Gorman, Emory, and Johnson
Nays: None
MOTION PASSES
H. Sanitation Contract Extension Public Works
SUMMARY OF REQUEST: Staff is seeking Commission approval to adopt a proposed
5.5. Yearn Extension of Sanitation Services with Republic Services, Inc. to provide Solid
Waste, Recycling, and Yard Waste Services for city residents.
The proposal from Republic Services proposed to largely extend the existing services in
place. The major changes are as follows:
5.5 Year Extension (January 1, 2023 – June 30, 2028). Similar to previous extension
terms but modified to align with the city fiscal year with a 4% rate increase on
January 1, annually each year starting in 2024.
Solid Waste cost per unit (residence) in 2023 at $12.26/unit (2022 Rate is
$11.62/Unit)
Recycling cost per unit in 2023 is $4.78/Unit (2022 Rate is $4.50/Unit)
Solid Waste Cost is $100/Load (2022 Rate is $10.50/Ton or roughly $125/Load)
Offers a soft reopener clause for changes in material elements of work greater
than 15% year over year.
Page 9 of 13
19
Provides complimentary service to several city utilized dumpsters around town
that support Park and event operations.
Provides that by 2027 Republic Services will implement a tracking mechanism to
record which properties are collected and which are not on a daily basis and
report that out in electronic format to the City. This information can be the basis
of considering an alternative funding mechanism in future extensions if there is a
desire to switch to a pay per use model rather than a pay per unit model, or to
explore options that further incentivize recycling similar to how Grand Rapids
handles their solid waste programming.
No change to the bulk item (pink sticker) program, or the Neighborhood
Dumpster Day program. Those remain in place at the costs established in
previous contracts.
The current contract is set to expire at the end of the calendar year. Staff is very satisfied
with the service that Republic provides in terms of the level of support and cooperation
that is involved, as well as the price per unit to deliver this service to the city.
The first full year of the program is expected to cost approximately $2.2 million. The
22/23 budget includes $2.107 million for Republic Services. Being that on ½ of the fiscal
year will fall under this new contract we expect that the 22/23 budgeted amount will
very nearly cover the cost of this increase.
Revenue to support these costs are derived from the 3 mill sanitation fee levied on all
properties in the city, in addition to the Sanitation Fee charged on all water bills, and
any user fees collected for bulk item stickers, etc. These revenue sources should
continue to fully support the expenses of this contract with the potential need for minor
annual adjustments depending on the growth of the levied millage.
AMOUNT REQUESTED: AMOUNT BUDGETED:
No Change to Budgeted Amount (22/23) $2.075M (22/23)
$2.20 Million (23/24) TBD (23/24, and beyond)
$2.29 Million (24/25)
$2.38 Million (25/26)
$2.47 Million (26/27)
$2.57 Million (27/28)
FUND OR ACCOUNT: 101-521 (Sanitation)
STAFF RECOMMENDATION: To approve the 5.5 year contract extension for
sanitation with Republic Services, Inc.
Page 10 of 13
20
Motion by Commissioner Gorman, second by Commissioner Hood, to approve the
5.5 year contract extension for sanitation with Republic Services, Inc.
ROLL VOTE: Ayes: German, Gorman, Emory, Johnson, and Hood
Nays: None
MOTION PASSES
N. 2023 FOP Contract City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the proposed collective
bargaining agreement with the Fraternal Order of Police Labor Council.
City staff and Fraternal Order of Police Labor Council representatives have agreed upon
new contract items that would take effect January 1, 2023. A summary of the tentative
agreements and wage scale is attached, and the FOP has ratified the contract. The new
wage scale provides better distribution among classifications in patrol and command
over time. There is an impact to the budget with the revised wages. The formal
agreement is being prepared by counsel. The new agreement is beneficial to both
parties. Staff is prepared to begin implementing the provision of the contract on January
1, 2023.
AMOUNT REQUESTED: $97,341.55 increase AMOUNT BUDGETED: $9,100,000
FUND OR ACCOUNT: 40301
STAFF RECOMMENDATION: To approve the collective bargaining agreement with
the Fraternal Order of Police Labor Council as presented.
Motion by Commissioner Gorman, second by Commissioner Emory, to approve the
collective bargaining agreement with the Fraternal Order of Police Labor Council
as presented, which may be corrected for technical and grammatical reasons.
ROLL VOTE: Ayes: German, Gorman, Emory, Johnson, and Hood
Nays: None
MOTION PASSES
2022-105 NEW BUSINESS:
A. Housing Board of Appeals Demolition – 808 Oak Avenue Public Safety
SUMMARY OF REQUEST: This is to request that the City Commission concur with the
findings of the Housing Board of Appeals that the structures are unsafe, substandard, a
public nuisance and that they be demolished within 30 days. It is further requested that
administration be directed to obtain bids for the demolition of the structures and that
the Mayor and City Clerk be authorized and directed to execute a contract for
demolition with the lowest responsible bidder or staff may issue infraction tickets to the
Page 11 of 13
21
owner, agent or responsible party if they do not demolish the structure.
The Housing Board of Appeals has deemed 808 Oak Avenue to be in property
maintenance violation since 2016. Property has been a long-standing area of blight and
public nuisance/hazard. Property includes a house, multiple outbuildings, two garages,
and two large pole barns. House is gutted down to the studs, has multiple holes in the
roof, and is unsecured. Garages, outbuildings, and pole barns are severely dilapidated.
Staff has not been inside buildings so the extent of the dilapidation is unknown. Owner
has expressed desire to sell property but has not provided any plan to bring the
property or buildings into compliance. No permits have been applied for. HBA declared
the house in September 2022. Owner has not been to any HBA meetings.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish and authorize administration to obtain bids for the demolition and that the
Mayor and Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.
Motion by Commissioner Hood, second by Vice Mayor German, to refer this item
back to the Housing Board of Appeals.
ROLL VOTE: Ayes: Gorman, Emory, Johnson, Hood, and German
Nays: None
MOTION PASSES
B. Adelaide Pointe Reimbursement Agreement City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the development reimbursement
agreement for Adelaide Pointe.
The development reimbursement agreement is the next step in the process of finalizing
the city’s partnership with the developer through the Brownfield Redevelopment
Authority. This agreement provides the outline for how the partners will cooperate on
funding the improvements to the site. The city will sell bonds for agreed upon expenses
and be reimbursed through tax capture. The developer will also incur brownfield eligible
expenses which will be repaid through tax capture. Individual addenda will be prepared,
throughout the term of the development project, to reflect project phases. Each
addendum will be presented to the BRA and the Commission for consideration and
approval.
Staff hosted a public forum on October 3, 2022 to gather public input and answer
questions about the development. The Brownfield Redevelopment Authority considered
the agreement at their December 13, 2022 meeting.
STAFF RECOMMENDATION: To approve the development and reimbursement
agreement for Adelaide Pointe.
Page 12 of 13
22
Motion by Commissioner Gorman, second by Commissioner Hood, to approve the
development and reimbursement agreement for Adelaide Pointe.
ROLL VOTE: Ayes: Gorman, Emory, Johnson, Hood, and German
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Vice Mayor German asked if there was an update on the
Mart Dock property lawsuit in Circuit Court - no update at this time.
Chief Kozal provided information about parking at Grand Trunk. The ordinances that
govern launch ramp parking 58-3 and 97-74.92-71 LO15 says that passes are required.
Recommends making it so that the ordinances so that they are easier to read for our
boat launch/marina. There is no enforcement at this time.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:45 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 13 of 13
23
AGREEMENT BETWEEN THE CITY OF MUSKEGON
AND
LAKESHORE CREATIVE SERVICES, LLC
This agreement is made this 10th day of January, 2023, by and between City of
Muskegon, a Michigan municipal corporation (“City”) and Lakeshore Creative Service, LLC,
a domestic limited liability company (“Lakeshore”), who agree as follows:
RECITIAL
1. The City desires to have its City Commission meetings recorded and broadcasted on
its cable television, public educational, and governmental (“PEG”) access channels
provided pursuant to federal law.
2. In exchange for broadcasting City Commission meetings, the City agrees to
compensate Lakeshore and to encourage expansion of Lakeshore’s responsibilities
and access to City’s Government Access Channel to broadcast programming
consistent with PEG Channel purposes.
NOW THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES: Lakeshore shall provide the following services.
1.1 BROADCASTING LOCAL GOVERNMENT PROGRAMMING. Produce and
broadcast, regularly scheduled, City Commission meetings, excluding work sessions, and
meeting of other committees, boards and commissions that the City might require, and
other reasonable programs or issues that the City Commission may deem necessary.
1.2 OTHER ACTIVITIES. Undertake other PEG access programming activities and
services deemed appropriate by Lakeshore and consistent with the obligation to facilitate
and promote PEG access programming and provide non-discriminatory access pursuant
to an amendment(s) to this Agreement.
SECTION 2. COMPENSATION: City shall compensate Lakeshore as follows:
2.1 CITY COMMISSION MEETINGS. Lakeshore shall be paid $450 per City
Commission meeting. Payment shall be made in the calendar month following services
provided.
2.2 EQUIPMENT. Lakeshore paid up to $2,500 in 2019 for additional equipment, as
approved in writing by the City Clerk. The equipment shall be owned by the City and
shall be delivered to the City Clerk upon termination of this Agreement.
24
2.3 EXTRA SERVICES. City Clerk and Lakeshore may agree to additional services
for a specified fee and insurance requirements. Such Agreement must be in writing and
signed by both parties to be effective.
SECTION 3. COPYRIGHT:
3.1 OWNERSHIP: The City shall own the copyright of any programs that the City
requests Lakeshore to produce and Lakeshore agrees to assign all such rights to the City
and shall execute all documents reasonably requested to effect such assignment and
registration of copyrights assigned. Copyright of all other programs shall be held by the
person(s) who produced the program.
SECTION 4. NON-DISCRIMINATION IN : Lakeshore shall not discriminate in the
delivery of services or against any person, employee, or applicant for employment or
contract work on the basis of race, color, creed, religion, sex, sexual preference, marital
status, ancestry, national origin or physical or mental disability.
SECTION 5. INDEPENDENT CONTRACTOR: It is understood and agreed that
Lakeshore is an independent contractor and that no relationship of principal/agent or
employer/employee exists between the City and Lakeshore. If in the performance of this
Agreement and third persons are employed by Lakeshore, such persons shall be entirely
and exclusively under the control, direction and supervision of Lakeshore. All terms of
employment, including hours, wages, working conditions, discipline, hiring and
discharging, or any other term of employment, shall be determined by Lakeshore and the
City shall have no authority over such persons or terms of employment.
SECTION 6. ASSIGNMENT AND SUBLETTING: Neither this Agreement nor any
interest herein shall be assigned or transferred by Lakeshore, except as expressly
authorized in writing by the City.
SECTION 7. TERMS OF AGREEMENT: This Agreement shall be for a period of two
years commencing January 10, 2023 and ending January 31, 2025, unless terminated
earlier, as provided in this Agreement.
SECTION 8. TERMINATION OF AGREEMENT/TRANSFER OF ASSETS: Either
party shall have the right upon sixty (60) days written notice.
SECTION 9. TIME: This is of the essence in this Agreement and for the performance of
all covenants and conditions of this Agreement.
SECTION 10. COOPERATION: Each party agrees to execute all documents and do all
things necessary and appropriate to carry out the provisions of this Agreement.
SECTION 11. APPLICABLE LAW: This Agreement shall be interpreted and enforced
under the laws of the State of Michigan.
25
SECTION 12. NOTICES: All notices and other communication to be given by either
party may be given in writing, depositing the same in the United States mail, postage
prepaid and addressed to the appropriate party as follows:
TO: CITY OF MUSKEGON
Attn: City Clerk
933 Terrace Street
Muskegon, MI 49440
TO: LAKESHORE CREATIVE SERVICES, LLC
Attn: Andy O’Riley
NEED TO COMPLETE ADDRESS
Any party may change its address by written notice to the other party at any time.
SECTION 13. ENTIRE AGREEMENT: This Agreement is the entire agreement of the
parties and supersedes all prior negotiations and agreements whether written or verbal.
This Agreement may be amended only by written agreement and no purported verbal
amendment to this agreement shall be valid.
CITY OF MUSKEGON
By__________________________
Ken Johnson, Its Mayor
By__________________________
Ann Marie Meisch, Its Clerk
LAKESHORE CREATIVE SERVICES, LLC
By___________________________
Andy O’Riley, Owner
26
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Transmittal of 6/30/22
Annual Comprehensive
Financial Report
Submitted By: Kenneth D. Grant Department: Finance Director
Brief Summary: The City’s June 30, 2022 Annual Comprehensive Financial Report (ACFR) will be distributed
to the City Commissioners via email and hard copy. The ACFR will also be available on the City’s website.
The ACFR includes the annual independent auditor’s report as required by state law. At this time the ACFR
is being formally transmitted to the City Commission. The ACFR has been prepared in accordance with all
current Governmental Accounting Standards Board (GASB) pronouncements and also includes the single
audit of federal grants received by the City. CAFR2022.pdf (muskegon-mi.gov)
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To accept the June 30, 2022 ACFR and authorize staff to transmit the
ACFR to appropriate Federal, State and private agencies.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology No
Other Division Heads Communication Yes
Legal Review
For City Clerk Use Only:
Commission Action:
27
Annual Comprehensive
Financial Report
City of Muskegon
Fiscal Year Ended June 30, 2022
28
29
CITY OF MUSKEGON,
MICHIGAN
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2022
Prepared By
FINANCIAL SERVICES DIVISION
Kenneth D. Grant Jason Boes
Finance Director Information Systems Director
Jessica Rabe Hayden Nickell
Assistant Finance Director Management Assistant
Sarah Wilson
City Treasurer
30
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31
City of Muskegon
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................. 5
Certificate of Achievement for Excellence in Financial Reporting......................................................... 11
Organization Chart .................................................................................................................................. 12
List of Principal Officials ........................................................................................................................ 13
FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................. 17
Management’s Discussion and Analysis ................................................................................................. 21
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position ................................................................................................................. 34
Statement of Activities ...................................................................................................................... 36
Fund Financial Statements
Governmental Funds
Balance Sheet ................................................................................................................................ 37
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ................................................................................................. 38
Statement of Revenues, Expenditures and Changes
in Fund Balances ........................................................................................................................ 39
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of
Activities .................................................................................................................................... 40
Proprietary Funds
Statement of Net Position .............................................................................................................. 41
Statement of Revenues, Expenses and Changes in Net Position ................................................... 43
Statement of Cash Flows ............................................................................................................... 44
Fiduciary Funds
Statement of Net Position .............................................................................................................. 45
Statement of Changes in Net Position ........................................................................................... 46
Discretely Presented Component Units
Statement of Net Position ................................................................................................................. 47
Statement of Activities ...................................................................................................................... 48
Notes to Financial Statements .............................................................................................................. 49
Required Supplementary Information
Budgetary Comparison Schedule—General Fund ............................................................................... 90
Budgetary Comparison Schedule—Major Street and Trunkline Fund ................................................ 95
Budgetary Comparison Schedule—Trinity Health Arena Fund .......................................................... 96
Schedule of Changes in Net Pension Liability and Related Ratios ...................................................... 97
Pension System Schedule of Contributions ......................................................................................... 98
Retiree Healthcare System Schedule of Changes in the
Net OPEB Liability and Related Ratios ............................................................................................. 99
Retiree Healthcare System Schedule of Contributions ...................................................................... 100
Retiree Healthcare System Schedule of Investment Returns ............................................................. 101
1
32
City of Muskegon
TABLE OF CONTENTS
Other Supplemental Information
Other Governmental Funds
Description of Other Governmental Funds ..................................................................................... 104
Combining Balance Sheet ............................................................................................................... 106
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances (Deficits) ............................................................................................................. 107
Other Special Revenue Funds
Combining Balance Sheet............................................................................................................ 108
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances .......................................................................................................................... 109
Budgetary Comparison Schedule—Other Special Revenue Funds ............................................. 110
Other Capital Projects Funds
Combining Balance Sheet............................................................................................................ 113
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances (Deficits) .......................................................................................................... 114
Internal Service Funds
Description of Internal Service Funds ............................................................................................ 115
Combining Statement of Net Position ............................................................................................ 116
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position ..................................................................................................... 117
Combining Statement of Cash Flows.............................................................................................. 118
Fiduciary Funds
Description of Fiduciary Funds....................................................................................................... 119
Custodial Funds
Combining Statement of Net Position ......................................................................................... 120
Combining Statement of Changes in Net Position ...................................................................... 121
Discretely Presented Component Units
Description of Discretely Presented Component Units .................................................................. 123
Combining Balance Sheet ............................................................................................................... 124
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position .................................................................................................. 125
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances (Deficits) ......................................................................................................... 126
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances (Deficits) to the Statement
of Activities ................................................................................................................................. 127
Schedule of Indebtedness ................................................................................................................... 129
2
33
City of Muskegon
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends
Net Position by Component ............................................................................................................... 134
Changes in Net Position ..................................................................................................................... 135
Fund Balances of Governmental Funds ............................................................................................. 137
Changes in Fund Balances of Governmental Funds .......................................................................... 138
Revenue Capacity
Governmental Activities Revenues by Source ................................................................................... 139
Taxable, Assessed and Equalized and Estimated Actual Valuation of Property................................ 140
Principal Property Taxpayers ............................................................................................................. 141
Property Tax Rates – Direct and Overlapping Government Units ..................................................... 142
Property Tax Levies and Collections ................................................................................................. 143
Total Income Tax Collected and Number of Returns Filed ............................................................... 144
Debt Capacity
Ratio of Outstanding Debt by Type ................................................................................................... 146
Direct and Overlapping Debt ............................................................................................................. 147
Legal Debt Margin Information ......................................................................................................... 148
Revenue Bond Coverage .................................................................................................................... 149
Demographic and Economic Information
Demographic and Economic Statistics ............................................................................................... 150
Principal Employers ........................................................................................................................... 151
Operation Information
Full-time Equivalent Government Employees ................................................................................... 152
Operating Indicators by Function/Program ........................................................................................ 153
Capital Asset Statistics by Function/Program .................................................................................... 154
SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards .................................................................................................... 156
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control over Compliance Required by
the Uniform Guidance .................................................................................................................... 158
Schedule of Expenditures of Federal Awards ..................................................................................... 161
Notes to Schedule of Expenditures of Federal Awards ....................................................................... 164
Schedule of Findings and Questioned Costs ....................................................................................... 165
Client Documents
Summary Schedule of Prior Audit Findings ................................................................................... 168
Corrective Action Plan ................................................................................................................... 169
3
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4
35
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager
(231)724-6724
FAX (231)722-1214 December 21, 2022
Clerk
(231)724-6705
FAX (231)724-4178
To the Honorable Mayor, Members of the City Commission, and Citizens of the City of
Comm. & Neigh.
Services Muskegon:
(231)724-6717
FAX (231)726-2501
State law requires that every general-purpose local government publish, within six
Computer Info. months of the close of each fiscal year, a complete set of audited financial statements.
Technology
(231)724-4126 This report is published to fulfill that requirement for the fiscal year ended June 30,
FAX (231)722-4301 2022.
Engineering
(231)724-6707
FAX (231)727-6904 Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal
Finance
(231)724-6713 control that it has established for this purpose. Because the cost of internal control
FAX (231)726-2325 should not exceed anticipated benefits, the objective is to provide reasonable, rather
Fire Department than absolute, assurance that the financial statements are free of any material
(231)724-6795
FAX (231)724-6985
misstatements.
Human Resources
Co. (Civil Service) Brickley DeLong, PC, Certified Public Accountants, have issued an unmodified
(231)724-6442 (“clean”) opinion on the City of Muskegon’s financial statements for the year ended
FAX (231)724-6840
June 30, 2022. The independent auditor’s report is located at the front of the financial
Income Tax
(231)724-6770
section of this report.
FAX (231)724-6768
Mayor’s Office Management’s discussion and analysis (MD&A) immediately follows the independent
(231)724-6701 auditor’s report and provides a narrative introduction, overview, and analysis of the
FAX (231)722-1214
basic financial statements. MD&A complements this letter of transmittal and should be
Planning/Zoning read in conjunction with it.
(231)724-6702
FAX (231)724-6790
Police Department
(231)724-6750 Profile of the government
FAX (231)722-5140
The City of Muskegon operates under a commission-manager form of government and
Public Works
(231)724-4100 provides a full range of traditional municipal services. Policy-making and legislative
FAX (231)722-4188 authority are vested in the governing board (Commission) consisting of the mayor and
SafeBuilt six commissioners. Two commissioners are elected at large and each of the four ward
(Inspections)
(231)724-6715
commissioners is elected by the voters of their respective wards. Commission
FAX (231)728-4371 members serve four-year terms, with the two at large members elected every four years
Treasurer in odd years and the four ward commissioners elected every four years in even years.
(231)724-6720 The Mayor is also elected at-large for a four-year term. The Mayor and Commission
FAX (231)724-6768
appoint the City of Muskegon’s manager.
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration
(231)724-4106
FAX (231)755-5290 5
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The City of Muskegon provides a full range of services, including police and fire protection; solid
waste collection; parks and recreation activities; the construction and maintenance of streets
and roadways; street snowplowing; traffic control; building inspections; licenses and permits;
water distribution and sewer disposal services; community and economic development; and
general administrative support services. The City also provides treated drinking water to its
residents and several surrounding communities.
The Commission is required to adopt an initial budget for the fiscal year no later than the last
regular meeting in June preceding the beginning of the fiscal year on July 1. This annual budget
serves as the foundation for the City of Muskegon’s financial planning and control. The budget
is prepared by fund, function (e.g., public safety), and department (e.g., police). The City
Manager and department heads may transfer resources within a department as they see fit.
Transfers between departments, however, need special approval from the Commission.
Local economy
The City of Muskegon is located in western Michigan on the shores of Lake Michigan. The City
covers 18 square miles (including 4 miles of water) and, with a 2020 US Census population of
37,552 is the largest city on the eastern shore of Lake Michigan. The City is located in Muskegon
County and is part of the Muskegon-Norton Shores Metropolitan Statistical Area (MSA), and the
larger Grand Rapids-Wyoming-Muskegon Combined Statistical Area (CSA).
Muskegon is home to many outstanding sports, recreation, and cultural activities:
Muskegon has been the eastern terminus for the high-speed cross-lake ferry connecting
Muskegon with Milwaukee, Wisconsin since 2004. The Lake Express service ferries
100,000-plus passengers each season between the two cities.
Muskegon has been home to the annual Miss Michigan pageant since 1950.
Pere Marquette beach is nationally recognized as one of the best beaches in the nation
and welcomes hundreds of thousands of visitors.
Muskegon is home to successful summertime festivals that attract more than 100,000
visitors to the community annually. These include Taste of Muskegon, the Discover
Muskegon Festival, Bike Time and Rebel Road, the Unity Christian Music Festival, the
Shoreline Jazz Festival, the Great Lakes Surf Festival, the Burning Foot Beer Festival,
the Muskegon Polish Festival, and the Michigan Irish Music Festival.
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Muskegon is the cultural hub for west Michigan with numerous museums and live
performance venues: The Muskegon Museum of Art has one of the largest premier art
collections in the Midwest, while the Lakeshore Museum Center provides insight into the
area’s storied past. The Lakeshore Museum Center’s attractions include the Muskegon
Heritage Museum, the former residences of lumber barons Charles H. Hackley and
Thomas Hume, the Fire Barn Museum, and the Scolnik Depression Era House.
Frauenthal Center for the Performing Arts operates throughout the year, hosting the West
Michigan Symphony Orchestra and the Muskegon Civic Theater.
Muskegon’s downtown is home to dozens of monumental public art pieces, with new
pieces acquired each year. In 2022, “One Drop,” a 27-foot sculpture of a single drop of
water, by Georgia artist Marc Moulton, was added to the public art collection outside the
City’s VanDyke Mortgage Convention Center along Shoreline Drive.
Muskegon is home to three historic museum ships that attract thousands of visitors each
year:
USS Silversides, a rare surviving World War II submarine maintained in pristine
condition is docked at the Muskegon Lake Channel;
LST-393, a landing craft used in the D-day invasion and one of only two such vessels
remaining in existence is docked downtown Muskegon at the West Michigan Dock
and Market; and the
Milwaukee Clipper, a Great Lakes passenger ship built before the Titanic that for many
years served as a cross-lake ferry between Muskegon and Milwaukee is docked in
the Lakeside Business District.
Muskegon has a diverse local economy. The manufacturing sector is strong in the areas of
aerospace, plastics, defense, metals and castings, office furniture, recreational items, and
automotive parts. The City of Muskegon also benefits from being home to large government,
healthcare, and educational employers. While many of these institutions are exempt from paying
property taxes, local income tax withholdings remitted by these employers provide stability to
City finances.
The local economy has experienced some significant adjustments to the COVID-19 pandemic.
However, headed into the pandemic, all local indicators pointed to a strong economy – with both
corporate profits and income tax withholdings significantly higher than in previous years.
The City fully recognizes the difficulties it faces as an older urban community. Thus, we have
attempted to position ourselves as a leader in fiscal stability and sustainability, while making key
investments in areas that grow the city’s financial resources over the long term.
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Long-term financial planning and major initiatives
The unassigned fund balance in the General Fund at year-end was 24.1% of total actual General
Fund revenues for the preceding year. This amount was well above the policy guidelines set by
the Commission for budgetary and planning purposes (i.e., 13% of total actual General Fund
revenue for the preceding year). Adequate fund balances are maintained to allow the City to
continue providing services to the community in case of unexpected emergencies or
requirements and/or economic downturns.
The City incorporates a five-year fiscal forecast into its yearly budget process. The forecast is
a macro-level projection of major revenue sources, expenses, and fund balances while
accounting for identifiable factors, recent trends, and management’s judgment as to future
developments.
Among the City's major initiatives and accomplishments in the fiscal year 2021-22 were the
following:
Downtown Muskegon’s Leonard Building, a five-story mixed-use building, began
welcoming tenants in 2022; Samaritas opened a 50+ unit senior affordable apartment
building; Terrace Street was reconstructed and turned into a traditional two-lane road from
a large boulevard allowing for better connections between the core of downtown and
businesses east of Terrace Street, including the Pine Street commercial corridor.
Staff is nearing completion of an agreement to allow the City to acquire an old railroad
line through the Nims and Lakeside neighborhoods. The acquisition will allow for the
development of Windward Point in Lakeside and the conversion of much of the corridor
into pedestrian and commuter bike trails.
In 2019 the City started an ambitious infill housing program to provide new housing stock
across the community. In 2022 the program constructed new homes in the Jackson Hill,
Angell, McLaughlin, Nelson, and Campbell Field neighborhoods. Since the program’s
inception, the City has completed or initiated the construction of more than 125 homes. A
portion of homes are available for rent or purchase to individuals and families at 120% or
less of the Area Median Income (AMI).
Progress continues to move forward on the Adelaide Point (which now includes the former
Hartshorn Marina Village Development) and Viridian Shores Developments. These two
waterfront developments will feature more than $200 million in investments and create
hundreds of new housing opportunities in the City.
Parkland Properties announced in December 2022 it would be purchasing and
redeveloping the former Shaw Walker property into a mix-use development.
In 2022, the City approved site plans for the Lakeside Dunes development at the
Muskegon Country Club. Phase one is underway and will see 34 single-family semi-
custom club homes built and designed by David C. Bos Homes.
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Relevant financial policies
The City of Muskegon has adopted a comprehensive set of financial policies used to ensure
adequate protection of the City’s assets from loss, theft, or misuse, and provide adequate
accounting data to allow for the preparation of financial statements in conformity with generally
accepted accounting principles.
Budgetary control is maintained through an annual budget resolution passed by the City
Commission. Budgetary control at the functional level is maintained by review of estimated
expenditures prior to making purchases. Encumbrances are not recorded in the City’s funds.
The City does, however, utilize an informal monitoring system to facilitate budgetary control over
proposed purchases. Essentially, this system entails the use of on-line budgetary information
that details year-to-date “actual versus budgeted” expenditure comparisons by budget category.
This information is accessible to appropriate personnel to enable them to ascertain the budget
status of an expenditure category prior to authorizing additional purchases.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Muskegon for its annual comprehensive financial report (ACFR) for the fiscal year ended June
30, 2020. This was the 34th consecutive year that the City has received this award. The City
has submitted the June 30, 2021 ACFR for consideration but has not received award
confirmation at this time. In order to be awarded a Certificate of Achievement, a government
must publish an easily readable and efficiently organized ACFR that satisfies both generally
accepted accounting principles and applicable program requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one
year only. However, we believe our current ACFR continues to meet the Certificate of
Achievement for Excellence in Financial Reporting Program’s requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
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The preparation of this report would not have been possible without the skill, effort, and
dedication of the Finance Division and the entire city staff. We express appreciation to those
staff members who assisted and contributed to the preparation of this report. Credit also must
be given to the Mayor and Commissioners for their support in maintaining the highest standards
of professionalism in the management of the City of Muskegon’s finances.
Respectfully submitted,
Jonathan C. Seyferth Kenneth D. Grant
City Manager Finance Director
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Organizational Structure 2021-22
Mayor and City Commission
City Manager External Auditors
City Attorney
Planning Commission
Finance and Public Works
Public Safety Development Services Zoning Board of Appeals
Administrative Services Historic District Commission
Housing Code Board of Appeals
Board of Review
Finance Administration Income Tax Board of Review
Treasury/Income Tax Community Civil Service Commission
City Clerk Streets/Highways Development DDA/BRA
Police Information Systems Utilities Neighborhood Services LDFA
Fire Public Relations Parks and Recreation Planning/Zoning BID Board
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Code Enforcement Elections Cemeteries Sanitation Economic Development Equal Opportunities Committee
Risk Management Streetlights Strategic Planning Local Officers Compensation
Employee Relations Special Events Committee
Farmers Market Citizen's Police Review Board
CDBG District Council
Election Commission
Environmental Code Construction Board of Appeals
(SAFEbuilt) Human Resources (County) Consumers Energy
Inspections (SAFEbuilt) Assessing (County) Republic Waste Services Muskegon Area First Housing Commission
Prosecutions (Parmenter LC Walker Arena (Two T's LLC) County Wastewater
O'Toole)
Elected Officials
Independent Bodies Municipal Executive Division Heads
Frontline Staff Contractual
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
CITY OF MUSKEGON, MICHIGAN
LIST OF PRINCIPAL OFFICIALS
June 30, 2022
ELECTED OFFICIALS
Mayor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ken Johnson
At Large
Vice Mayor-Commissioner. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .Willie German
Ward 2
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Eric Hood
Ward 1
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Michael Ramsey
Ward 3
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Teresa Emory
Ward 4
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rachel Gorman
At Large
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rebecca St. Clair
At Large
APPOINTED OFFICIALS
City Manager. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jonathan Seyferth
City Attorney. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John C. Schrier
Finance Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kenneth D. Grant
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
City Commission
City of Muskegon
Muskegon, Michigan
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Muskegon, Michigan, as of and for the year ended June 30, 2022, and the related notes
to the financial statements, which collectively comprise the City of Muskegon, Michigan’s basic financial
statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Muskegon,
Michigan, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to
be independent of the City of Muskegon, Michigan, and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As discussed in Note O to the financial statements, in the year ended June 30, 2022 the City adopted new
accounting guidance, GASB Statement No. 87, Leases. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Grand Haven | Grand Rapids | Hart | Muskegon
www.brickleydelong.com
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BRICKLEY DELONG
City Commission
City of Muskegon
Page 2
Responsibilities of Management for the Financial Statements–Continued
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of Muskegon, Michigan’s ability to
continue as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgement made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City of Muskegon, Michigan’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City of Muskegon, Michigan’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.
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BRICKLEY DELONG
City Commission
City of Muskegon
Page 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information, and pension and other post-employment benefit
information be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise City of Muskegon, Michigan’s basic financial statements. The accompanying combining and individual
nonmajor fund financial statements, budgetary comparison information for nonmajor funds, schedule of
indebtedness, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison
information for nonmajor funds, schedule of indebtedness, and the schedule of expenditures of federal awards are
fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and
we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are required
to describe it in our report.
Muskegon, Michigan
December 21, 2022
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2022 MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the City of Muskegon’s annual financial report presents our discussion and analysis of the
City’s financial performance during the fiscal year ended June 30, 2022. Please read it in conjunction
with the City’s financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
The assets/deferred outflows of resources of the City of Muskegon exceeded its liabilities/deferred
inflows of resources by $114,024,323 as of June 30, 2022. The City has a deficit in unrestricted net
position of $22,513,368. The deficit in unrestricted net position is caused by the City’s pension and
other postemployment benefits plans liabilities.
The City’s total combined net position increased by $11,679,948 during the year ended June 30, 2022.
The City’s governmental funds reported combined ending fund balance of $19,965,055, an increase of
$3,672,527(23%) from the prior year.
The City’s General Fund reported a total fund balance of $10,861,373, a decrease of $336,467 from the
prior year balance of $11,197,840.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts ‐ management’s discussion and analysis (this section), the
basic financial statements, and required supplementary information. The basic financial statements
include two kinds of statements that present different views of the City.
The first two statements are government‐wide financial
statements that provide both long‐term and short‐term
information about the City’s overall financial status.
The remaining statements are fund financial statements
that focus on individual parts of the government, reporting
individual City operations in greater detail than the government‐
wide statements.
The governmental funds statements tell how general
government services were financed in the short‐term as
well as what remains available for future spending.
Proprietary fund statements offer short‐ and long‐term
financial information about activities the City operates like
private businesses.
Fiduciary fund statements provide information about the
financial relationships in which the City acts solely as a trustee or agent
for the benefit of others, to whom the resources in question belong.
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The financial statements also include detailed notes that explain some of the information in the financial
statements and provide additional data. The statements are followed by a section of required
supplementary information that further explains and supports the information in the financial
statements. The figure above shows how the required parts of this annual report are arranged and
related to one another.
The remainder of this overview section of management’s discussion and analysis explains the structure
and contents of each of the statements.
Government‐Wide Statements
The government‐wide statements report information about the City as a whole using accounting
methods similar to those used by private‐sector companies. The statement of net position includes all
of the government’s assets/deferred outflows of resources and liabilities/deferred inflows of resources.
All of the current year’s revenues and expenses are accounted for in the statement of activities
regardless of when cash is received or paid.
The two government‐wide statements report the City’s net position and how they have changed. Net
position—the difference between the City’s assets/deferred outflows of resources and
liabilities/deferred inflow of resources—is one way to measure the City’s overall financial health or
position. Over time, increases or decreases in the City’s net position are an indicator of whether its
financial health is improving or deteriorating, respectively. However, to assess the overall health of the
City, one needs to consider additional nonfinancial factors such as changes in the City’s tax base.
The government‐wide financial statements include not only the City of Muskegon itself (known as the
primary government), but also legally separate component units for which the City is financially
accountable. Financial information for these component units is reported separately from the financial
information presented for the primary government itself.
The government‐wide financial statements of the City include the governmental activities. Most of the
City’s basic services are included here, such as public representation services, administrative services,
financial services, public safety, public works, highways, streets and bridges, community and economic
development, culture and recreation, general administration, and interest on long‐term debt. Income
taxes, federal grants, property taxes and revenues from the State of Michigan finance most of these
activities.
Also included in the government‐wide statements are the City’s business‐type activities: water, sewer
and marina operations.
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Fund Financial Statements
The fund financial statements provide more detailed information about the City’s major funds—not the
City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of
funding and spending for particular purposes.
The City has the following kinds of funds:
Governmental funds—Most of the City’s basic services are included in governmental funds, which
focus on (1) how cash and other financial assets that can readily be converted to cash flow in and
out and (2) the balances left at year‐end that are available for spending. Consequently, the
governmental fund statements provide a detailed short‐term view that helps the user determine
whether there are more or fewer financial resources that can be spent in the near future to finance
the City’s programs. Because this information does not encompass the additional long‐term focus
of the government‐wide statements, we provide additional information on the subsequent page of
the governmental funds statements that explain the relationship (or differences) between them.
Proprietary funds—Services for which the City charges customers a fee and are intended to be self‐
supporting are generally reported in proprietary funds. The City uses three proprietary funds:
water, sewer, and marina and launch ramp. Proprietary funds, like the government‐wide
statements, provide both long‐term and short‐term financial information.
The City uses internal service funds to report activities that provide supplies and services for the
City’s other programs and activities.
Fiduciary funds—The City is the trustee, or fiduciary, for certain funds. It is also responsible for
other assets that—because of a trust arrangement—can be used only for the trust beneficiaries.
The City is responsible for ensuring that the assets reported in these funds are used for their
intended purposes. All of the City’s fiduciary activities are reported in a separate statement of net
position and a statement of changes in net position. We exclude these activities from the City’s
government‐wide financial statements because the City cannot use these assets to finance its
operations.
Component units – Finally, the City of Muskegon’s Comprehensive Annual Financial report includes
four component units: The Downtown Development Authority (DDA), the Tax Increment Finance
Authority (TIFA), the Local Development Finance Authority (LDFA) and, the Brownfield
Redevelopment Authority (BRA), which is comprised of six designated brownfield areas.
Component units are separate legal entities for which the City of Muskegon has some level of
financial accountability. The component units of the City exist primarily for the issuance and
repayment of debt to finance projects in specific areas of the City. Accordingly, they are discussed
below under the Capital Assets and Debt Administration heading.
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FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Net position. The Statement of Net Position provides an overview of the City’s assets/deferred outflows
of resources, liabilities/deferred inflow of resources and net position. Over time this can provide a good
indicator of the City’s fiscal health.
The total net position of the City was $114,024,323 as of June 30, 2022. This is an increase of
$11,679,948 from reported net position for the prior year. An overview of the City’s net position
follows:
City's Net Position
(In Thousands of Dollars)
Governmental Business-Type
Activities Activities Total Percentage
6/30/2022 6/30/2021 6/30/2022 6/30/2021 6/30/2022 6/30/2021 Change
Current and other assets $53,203 $40,446 $6,947 $8,568 $60,150 $49,014 22.72%
Capital assets 105,605 102,697 69,088 63,314 174,693 166,011 5.23%
Total Assets 158,808 143,143 76,035 71,882 234,843 215,025 9.22%
Deferred outflow s of resources 2,692 2,006 187 139 2,879 2,145 34.22%
Total Assets and Deferred Outflow s of Resources 161,500 145,149 76,222 72,021 237,722 217,170 9.46%
Long-term liabilities 62,472 71,213 15,516 10,793 77,988 82,006 -4.90%
Current liabilities 23,700 22,650 3,225 6,804 26,925 29,454 -8.59%
Total Liabilities 86,172 93,863 18,741 17,597 104,913 111,460 -5.87%
Deferred inflow s of resources 17,219 3,147 1,564 219 18,783 3,366 458.02%
Total Liabilities and Deferred Outflow s of Resources 103,391 97,010 20,305 17,816 123,696 114,826 7.72%
Net Position `
Net investment in capital assets 75,202 72,201 54,669 54,257 129,871 126,458 2.70%
Restricted 5,845 5,003 822 822 6,667 5,825 14.45%
Unrestricted -22,938 -29,065 425 -874 -22,513 -29,939 -24.80%
Total Net Position $58,109 $48,139 $55,916 $54,205 $114,025 $102,344 11.41%
The bulk of the City’s net position $129,870,436 represents investments in capital assets net of
accumulated depreciation, less the remaining balance of debt issued to acquire those assets. These
infrastructure assets are used to provide public services to citizens and are not available for spending.
Another $6,667,255 of the City’s net position are legally restricted as to use. The City has a deficit in
unrestricted net position of $22,513,368. The deficit in unrestricted net position is caused by the City’s
long‐term pension and other postemployment benefits plans liabilities. The City’s unrestricted net
position improved $7,425,502 during the year.
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Changes in net position. The City’s total revenues were $80,880,919 for the year ended June 30, 2022.
This represents a 4.12% increase over total revenues collected during the prior fiscal year.
Approximately 37.9% of the City’s revenue stream came from charges to users of specific services such
as water or sewer. Another 13.7% came from grants from the state and federal governments and 23.7%
was from local property and income taxes. The remainder was comprised of state revenue sharing and
other sources such as franchise fees and investment income.
The total cost of all City programs and services for the year ended June 30, 2022 was $69,200,971. This
represents a 6.7% increase from reported expenses for the last fiscal year ended June 30, 2021. 74.2%
of the City’s expenses were for governmental activities such as police and fire protection, streets, parks,
and general administration. The remaining 25.8% represents the costs of the City’s business‐type
activities, specifically, water, sewer and marina operations.
The table on the following page (Changes in City’s Net Position) further breaks down the change in total
net position into period‐to‐period changes in individual revenue and expense categories.
As can be seen, net position for governmental activities increased $9,969,730 and the net position for
business‐type activities increased by $1,710,218. For governmental activities, most of these changes are
related to the changes in the pension and other postemployment benefits plans. For business‐type
activities, the changes similarly represent the impact of the changes in the pension and other
postemployment benefits plans.
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Changes in City’s Net Position
(In thousands of dollars)
Governmental Business-Type
Activities Activities Total Percentage
6/30/2022 6/30/2021 6/30/2022 6/30/2021 6/30/2022 6/30/2021 Change
Program revenues
Charges for services $11,148 $7,951 $19,495 $18,229 $30,643 $26,180 17.05%
Operating grants and contributions 11,024 9,839 - - 11,024 9,839 12.04%
Capital grants and contributions 2,815 2,901 103 10,354 2,918 13,255 -77.99%
General revenues
Property taxes 9,182 8,813 - - 9,182 8,813 4.19%
Income taxes 10,020 9,609 - - 10,020 9,609 4.28%
State shared revenues 15,303 6,427 - - 15,303 6,427 138.10%
All other 1,802 3,580 24 10 1,826 3,590 -49.14%
Total revenues 61,294 49,120 19,622 28,593 80,916 77,713 4.12%
Governmental activities expenses
Public representation 1,715 1,604 - - 1,715 1,604 6.92%
Administrative services 914 826 - - 914 826 10.65%
Financial services 5,473 5,040 - - 5,473 5,040 8.59%
Public safety 13,387 18,249 - - 13,387 18,249 -26.64%
Public w orks 4,688 4,026 - - 4,688 4,026 16.44%
Highw ays, streets and bridges 7,309 6,863 - - 7,309 6,863 6.50%
Community and economic development 9,857 5,000 - - 9,857 5,000 97.14%
Culture and recreation 6,589 4,507 - - 6,589 4,507 46.19%
General administration 511 404 - - 511 404 26.49%
Interest on long-term debt 881 1112 - - 881 1,112 -20.77%
Business-type activities expenses
Sew er - - 8,154 8,085 8,154 8,085 0.85%
Water - - 9,261 8,612 9,261 8,612 7.54%
Marina and launch ramp - - 461 515 461 515 -10.49%
Total expenses 51,324 47,631 17,876 17,212 69,200 64,843 6.72%
Change in net position before transfers 9,970 1,489 1,746 11,381 11,716 12,870 -8.97%
Transfers - - (35) 35 (35) 35 -
Change in net position 9,970 1,489 1,711 11,416 11,681 12,905 -9.48%
Net position at beginning of year 48,138 46,650 54,205 42,789 102,343 89,439 14.43%
Net position at end of year $58,108 $48,139 $55,916 $54,205 $114,024 $102,344 11.41%
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Governmental Activities
The following table (Net Cost of Selected City Functions) presents the cost of each of the City’s largest
functions as well as each function’s net cost (total cost less fees generated by the activities and
intergovernmental aid specifically related to the function). The net cost reflects the portion of costs
funded by local tax dollars and other general resources:
The operational cost of all governmental activities during the year ended June 30, 2022 was
$51,324,518.
The net cost that City taxpayers paid for these activities through local property taxes and income
taxes was $19,202,554, or about 37% of the total.
The remaining cost was paid by user charges to those directly benefitting from the programs or by
state and federal grants and contributions or use of net position.
Net Cost of Selected City Functions
(in thousands of dollars)
Total Cost of Services Net Cost of Services
6/30/2022 6/30/2021 % Change 6/30/2022 6/30/2021 % Change
Governmental activities
Public safety $13,387 $18,249 -26.64% $10,703 $14,257 -24.93%
Public w orks 4,688 4,026 16.44% 3,831 3,131 22.36%
Highw ays, streets and bridges 7,309 6,863 6.50% 672 864 -22.22%
Community and economic development 9,857 5,000 97.14% 6,329 (78) -8214.10%
Culture and recreation 6,589 4,507 46.19% -2,430 2,102 -215.60%
All other 9,494 8,986 5.65% 7,233 6,664 8.54%
Total governmental activities $51,324 $47,631 7.75% $26,338 $26,940 -2.23%
Business‐Type Activities
The financial goal of the City’s business‐type activities (i.e. water, sewer and marina and launch ramp
operations) is to operate on a self‐supporting basis without making significant profit or needing general
tax subsidies. For the fiscal year ended June 30, 2022, the City’s total business‐type activities realized an
overall increase in net position of $1,710,218.
Sewer Fund net position increased $2,086,272 primarily from the result of adjustments to utility rates.
The Water Fund saw a net position decrease of $323,415. Marina and Launch Ramp Fund net position
decreased $171,475.
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FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The fund financial statements provide detailed information about the major City funds, not the City as a
whole. The City’s major funds for the fiscal year ended June 30, 2022 were the General Fund, the Major
Street and Trunkline Fund, and the State Grants Fund.
General Fund Highlights
The General Fund receives most public attention since it is where local tax revenues are accounted for
and where the most visible municipal services such as police, fire and parks are funded. The City
reforecasts its General Fund budget on a quarterly basis considering changing economic conditions and
policy priorities. The following table shows the General Fund year‐end unassigned fund balance for the
last five years.
Unassigned Fund
Year-End
Year‐to‐Year % Prior Year’s Balance as a % of
Year Ended Unassigned
Change Revenues Prior Year Revenues
Fund Balance
(Policy Target=13%)
6/30/2022 $7,981,674 -12.50% $33,056,483 24.15%
6/30/2021 9,121,955 54.06% 29,653,448 30.76%
6/30/2020 5,920,869 -9.79% 28,747,772 20.60%
6/30/2019 6,563,511 1.46% 28,729,919 22.85%
6/30/2018 6,469,108 5.22% 27,051,766 23.91%
For the year ended June 30, 2022, General Fund revenues were $326,085 higher than the final amended
budget estimate due to higher than anticipated income taxes and revenue sharing.
General Fund expenditures were $42,712 lower than projected in the final amended budget.
Major Street and Trunkline and State Grant Fund Highlights
The Major Street and Trunkline Fund accounts for all of the City’s street construction and maintenance
activities on its primary road system. Primary funding comes from the State of Michigan. For the year
ended June 30, 2022, the fund balance of the Major Street and Trunkline Fund increased $1,112,193.
The State Grants Fund received $11,440,947 in funding from the American Rescue Plan Act (ARPA)
which will be expended over the next few years.
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CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2022, the City had invested $174,692,339 in a variety of capital assets, including land,
streets, equipment, buildings, water and sewer lines, and vehicles. This is an increase of $8,681,233
from capital assets reported as of June 30, 2021. The increase is due to current year additions offset by
normal depreciation of assets. Note G of the notes to the
basic financial statements provides detailed information on
Bond Ratings
the City’s capital asset investment.
Long‐Term Debt The City’s limited full faith and credit bonds
(bonds guaranteed by the City’s taxing
At June 30, 2022, the City had $47,507,897 in bonds and other powers) were upgraded by Standard &
long‐term obligations outstanding. This represents a 12.8% Poor’s from a rating of “A+” to “AA‐“ in
increase from the prior year. The City issued new debt for a early 2016. The City’s rating remained at
fire truck and water and sewer improvements.
“AA‐“ in 2022.
Additional information concerning the City’s long‐term debt is
presented in Note J to the basic financial statements.
City’s Long Term Debt – Bonds and Other Obligations
(In thousands of dollars)
Governmental Business-Type
Activities Activities Total Percentage
6/30/2022 6/30/2021 6/30/2022 6/30/2021 6/30/2022 6/30/2021 Change
Due within one year $1,720 $1,526 $1,359 $1,312 $3,079 $2,838 8.49%
Due in more than one year 31,094 31,257 13,335 8,015 44,429 39,272 13.13%
Total bonds & other obligations $32,814 $32,783 $14,694 $9,327 $47,508 $42,110 12.82%
In addition to direct City debt, component units such as the Downtown Development Authority (DDA)
and Local Development Finance Authority (LDFA) had outstanding debt totaling $1,096,547 at year‐end
as shown in the table below. This represents a decrease of 18.9% from the prior year.
Debt issued by component units typically is secured by the limited full faith and credit of the City and so
is an important consideration in assessing the City’s overall fiscal health. Additional information
concerning component units’ long‐term debt is presented in Note J to the basic financial statements and
is summarized as follows:
Component Unit Long Term Debt – Bonds and Other Obligations
(In thousands of dollars)
Local Development
Total Percentage
Finance Authority
6/30/2022 6/30/2021 6/30/2022 6/30/2021 Change
Due within one year $255 $245 $255 $245 4.08%
Due in more than one year 842 1,107 842 1,107 -23.94%
Total bonds & other obligations $1,097 $1,352 $1,097 $1,652
-18.86%
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City’s fiscal year 2022‐23 capital budget anticipates spending $20,841,772 for capital projects,
consisting of street improvements, water and sewer system improvements, scheduled equipment
replacements, the rehab of houses in a city neighborhood and the replacement of fire department
rescue equipment.
From an operating standpoint, the City’s 2022‐23 budget will be relatively stable while the City attempts
to maintain a healthy fund balance and allow time to plan for and address economic challenges with a
long‐term solution:
The full‐time personnel complement will increase slightly to approximately 260.5.
Some user fees will be increased and new fees recommended during the course of the year.
The City will continue to look for opportunities to partner with other entities to deliver quality
services in a cost‐effective manner (e.g. Farmers’ Market kitchen management, Marsh Field and
recreation programs).
City operations depend on five major sources of revenue: local income taxes, local property taxes, state‐
shared revenues, state street funds, and water and sewer utility fees. Together, these five income
sources account for about three‐quarters of total revenues.
Local Income Tax
The City income tax was approved by voters in 1993 and is the primary source of funding for police, fire,
parks and other general operations. The income tax rate is 1% on City residents and ½ of 1% on non‐
residents working in the City. The income tax provides key advantages for core cities such as Muskegon.
First, it allows the City to regionalize its tax structure by taxing non‐residents who work here and use
City services. Second, it allows the City to benefit from development occurring outside City limits
because City residents employed by non‐City employers pay income taxes.
Finally, the income tax generates revenue from workers at not‐for‐profit hospitals, churches,
government agencies, colleges and other institutions that are traditionally exempt from paying local
property taxes. This is particularly important for Muskegon since it is the regional center for many such
institutions.
Income tax revenues increased 8.1% from $9,256,826 for the year ended June 30, 2021 to $10,002,623
for the year ended June 30, 2022. For 2022‐23, the City has estimated income tax revenue to be
$10,250,000.
Year City Income Tax Revenues Percent Change
6/30/2022 $10,002,623 8.1%
6/30/2021 $9,256,826 1.3%
6/30/2020 $9,137,714 5.1%
6/30/2019 $8,691,673 -0.8%
6/30/2018 $8,758,674 1.7%
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Local Property Tax
City charter and state law authorize the City to levy a general operating millage up to 10 mills and a
maximum sanitation millage of 3 mills. Millage rates are applied to the taxable value of property in the
City to arrive at the City’s property tax levy.
For 2022‐23, the City tax levy will be at 9.7880 mills for general operations and 2.9364 mills for
sanitation service. We project that $8,150,000 in total property tax revenue will be collected during
fiscal year 2022‐23.
It should be noted that several property tax appeals are currently pending. The impact of these appeals
on City finances is being monitored closely.
State Shared Revenues
State shared sales tax revenues represent about 13% of total General Fund revenue. The City’s state
shared revenue allocation is made up of two parts. The constitutional component is a fixed percentage
of total state sales tax collections that is allocated to cities on a per capita basis and that cannot be
reduced by the legislature. The non‐constitutional component is determined by a complex formula and
is subject to adjustment through the State’s annual budget process. Both components depend, of
course, on overall state sales tax collections. The City’s recent state shared revenue history is
summarized as follows:
Year State Shared Revenues Percent Change
6/30/2022 $5,087,587 7.5%
6/30/2021 $4,733,888 14.9%
6/30/2020 $4,117,935 -3.6%
6/30/2019 $4,271,438 2.8%
6/30/2018 $4,153,072 2.8%
For 2022‐23, the City projects $5,063,948 in state shared revenues.
Street Funds
The State also returns to the City a share of gasoline tax revenues to help fund maintenance and
construction of major and local streets within the City. These revenues have been more stable than
general state sales tax state‐shared revenues have been:
Street Revenues from Percent
Year State Change
6/30/2022 $6,271,210 5.2%
6/30/2021 $5,961,524 9.4%
6/30/2020 $5,450,220 6.2%
6/30/2019 $5,134,277 1.4%
6/30/2018 $5,060,936 25.9%
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Based on recent legislative changes, the City began seeing increases in street funding that will carry into
future years. At this time, the City is projecting street revenues for fiscal year 2022‐23 of $5,791,000.
Water and Sewer Fees
From a government‐wide entity perspective, combined water and sewer fees represent one of the City’s
largest income streams, totaling $18,871,053 during the year ended June 30, 2022. Charges to
customers are based on the amount of metered services used times rates periodically set by the City
Commission. During the year ended June 30, 2022 water rates increased by 4%. Water rates will
increase by 4% in the next fiscal year to pay for improvements being made at the Water Filtration Plant.
The City began providing treated water to the City of Norton Shores and Fruitport Charter Township in
May 2015. The addition of these two new large municipal customers allows the spreading of water
treatment costs over a larger customer base while remaining well within the plant’s rated treatment
capacity.
Due to the impact of continued increases in wastewater treatment charges from the Muskegon County
Wastewater Treatment System, the City Commission passed a resolution effective July 1, 2016, which
ties the sewer rate the City will charge to its customers to a multiplier of the rate that the county bills
the City for wastewater treatment. This rate change is expected to help maintain the financial viability
of the City’s sewer system.
The City of Muskegon along other jurisdictions in the area have an agreement in place with the
Muskegon County Wastewater Treatment System starting in 2022 to pay waste water treatment fees
based of the flow percentage contributed to the system and the annual revenue required from all
jurisdictions to run treatment plant. In the past, our fees were based on actual flow. By changing to
this method, we will be able to stabilized our monthly payments.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for
the money it receives. If you have questions about this report, need additional financial information, or
wish to obtain separate financial statements for the City’s component units, contact the City’s Finance
Department at (231) 724‐6713 or by e‐mail (finance@shorelinecity.com).
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63
FINANCIAL STATEMENTS
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64
City of Muskegon
STATEMENT OF NET POSITION
June 30, 2022
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets
Cash and investments $ 34,483,950 $ 1,883,569 $ 36,367,519 $ 403,928
Assets managed by others 1,356,585 - 1,356,585 -
Receivables
Accounts and notes 4,081,055 3,142,057 7,223,112 32,616
Leases 384,081 83,003 467,084 -
Due from other governmental units 2,201,173 132,610 2,333,783 -
Internal balances 458,620 (458,620) - -
Due from component units 64,211 - 64,211 -
Inventories 38,867 327,524 366,391 -
Prepaid items 560,480 149,850 710,330 -
Total current assets 43,629,022 5,259,993 48,889,015 436,544
Noncurrent assets
Restricted cash and investments - 829,000 829,000 -
Advances to component units 1,046,980 - 1,046,980 -
Leases receivable, less amounts due within one year 7,868,565 857,733 8,726,298 -
Notes receivable, less amounts due within one year 658,160 - 658,160 -
Capital assets, net
Nondepreciable 22,269,876 14,966,408 37,236,284 400,000
Depreciable 83,334,823 54,121,232 137,456,055 589,881
Total noncurrent assets 115,178,404 70,774,373 185,952,777 989,881
Total assets 158,807,426 76,034,366 234,841,792 1,426,425
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 1,741,007 121,033 1,862,040 -
Related to other postemployment benefits 951,112 66,120 1,017,232 -
Total deferred outflows of resources 2,692,119 187,153 2,879,272 -
Total assets and deferred outflows of resources 161,499,545 76,221,519 237,721,064 1,426,425
The accompanying notes are an integral part of this statement.
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65
City of Muskegon
STATEMENT OF NET POSITION—CONTINUED
June 30, 2022
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 5,865,462 $ 848,762 $ 6,714,224 $ 119,386
Due to other governmental units 22,189 903,943 926,132 2,000
Due to primary government - - - 64,211
Short-term note 84,297 - 84,297 -
Unearned revenues - unused Farmers Market tokens 26,331 - 26,331 -
Unearned revenues - expenditure-driven grants 15,914,190 - 15,914,190 -
Unearned revenues - prepaid events 67,658 - 67,658 -
Unearned revenues - prepaid fees - 113,943 113,943 -
Bonds and other obligations, due within one year 1,720,469 1,358,700 3,079,169 255,000
Total current liabilities 23,700,596 3,225,348 26,925,944 440,597
Noncurrent liabilities
Advances from primary government - - - 1,046,980
Bonds and other obligations, less amounts due within one year 31,093,831 13,334,897 44,428,728 841,547
Net pension liability 29,044,232 2,019,117 31,063,349 -
Net other postemployment benefits liability 2,333,505 162,222 2,495,727 -
Total noncurrent liabilities 62,471,568 15,516,236 77,987,804 1,888,527
Total liabilities 86,172,164 18,741,584 104,913,748 2,329,124
DEFERRED INFLOWS OF RESOURCES
Related to leases 8,252,646 940,736 9,193,382 -
Related to pension 6,498,416 451,762 6,950,178 -
Related to other postemployment benefits 2,467,870 171,563 2,639,433 -
Total deferred inflows of resources 17,218,932 1,564,061 18,782,993 -
Total liabilities and deferred inflows of resources 103,391,096 20,305,645 123,696,741 2,329,124
NET POSITION
Net investment in capital assets 75,201,511 54,668,925 129,870,436 (106,666)
Restricted
Highways, streets and bridges 3,244,753 - 3,244,753 -
Debt service - 822,000 822,000 -
Trinity Health Arena 61,968 - 61,968 -
Law enforcement 23,161 - 23,161 -
Business improvement districts 176,733 - 176,733 -
Perpetual care
Expendable 477,332 - 477,332 -
Non-expendable 1,687,702 - 1,687,702 -
Other purposes 173,606 - 173,606 -
Unrestricted (22,938,317) 424,949 (22,513,368) (796,033)
Total net position $ 58,108,449 $ 55,915,874 $ 114,024,323 $ (902,699)
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF ACTIVITIES
For the year ended June 30, 2022
Net (Expense) Revenue and Changes in Net Position
Program Revenue Primary Government
Charges for Operating Grants Capital Grants Governmental Business-type Component
Functions/Programs Expenses Services and Contributions and Contributions Activities Activities Total Units
Primary government
Governmental activities
Public representation services $ 1,715,050 $ 324,314 $ - $ - $ (1,390,736) $ - $ (1,390,736) $ -
Administrative services 913,923 715,421 - 10,691 (187,811) - (187,811) -
Financial services 5,473,498 1,085,220 50,000 - (4,338,278) - (4,338,278) -
Public safety 13,387,378 2,680,675 3,447 - (10,703,256) - (10,703,256) -
Public works 4,687,660 854,793 2,000 - (3,830,867) - (3,830,867) -
Highways, streets and bridges 7,308,858 522,779 6,114,381 - (671,698) - (671,698) -
Community and economic development 9,857,082 498,766 3,029,193 - (6,329,123) - (6,329,123) -
Culture and recreation 6,588,542 4,389,524 1,825,037 2,804,428 2,430,447 - 2,430,447 -
General administration 511,323 76,182 - - (435,141) - (435,141) -
Interest on long-term debt 881,204 - - - (881,204) - (881,204) -
Total governmental activities 51,324,518 11,147,674 11,024,058 2,815,119 (26,337,667) - (26,337,667) -
Business-type activities
Sewer 8,153,673 10,298,642 - - - 2,144,969 2,144,969 -
Water 9,261,276 8,903,549 103,208 - - (254,519) (254,519) -
Marina and launch ramp 461,504 292,416 - - - (169,088) (169,088) -
Total business-type activities 17,876,453 19,494,607 103,208 - - 1,721,362 1,721,362 -
36
Total primary government $ 69,200,971 $ 30,642,281 $ 11,127,266 $ 2,815,119 (26,337,667) 1,721,362 (24,616,305) -
Component units
Local Development Finance Authority - SmartZone $ 197,647 $ - $ - $ 200,000 - - - 2,353
Downtown Development Authority 810,219 - 655,765 - - - - (154,454)
Tax Increment Finance Authority 50,000 - - - - - - (50,000)
Brownfield Redevelopment Authorities 666,005 - - - - - - (666,005)
Total component units $ 1,723,871 $ - $ 655,765 $ 200,000 - - - (868,106)
General revenues
Property taxes 9,182,184 - 9,182,184 1,139,110
Income taxes 10,020,370 - 10,020,370 -
Cable franchise agreement 369,420 - 369,420 -
Grants and contributions not restricted to specific programs 15,303,423 - 15,303,423 36,895
Unrestricted investment earnings (644,067) 23,856 (620,211) 1,357
Miscellaneous 918,179 - 918,179 674
Gain on sale of capital asset 1,122,888 - 1,122,888 -
Transfers 35,000 (35,000) - -
Total general revenues and transfers 36,307,397 (11,144) 36,296,253 1,178,036
Change in net position 9,969,730 1,710,218 11,679,948 309,930
Net position at beginning of year 48,138,719 54,205,656 102,344,375 (1,212,629)
Net position at end of year $ 58,108,449 $ 55,915,874 $ 114,024,323 $ (902,699)
The accompanying notes are an integral part of this statement.
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City of Muskegon
BALANCE SHEET
Governmental Funds
June 30, 2022
Major Street Trinity Health Other Total
General and Trunkline Arena State Grants Governmental Governmental
Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 8,027,306 $ 2,900,461 $ - $ 16,995,473 $ 3,001,131 $ 30,924,371
Assets managed by others - - - - 1,356,585 1,356,585
Receivables
Accounts and loans (net of allowance for uncollectibles) 254,404 66,400 1,456,956 - 989,779 2,767,539
Property taxes 60,397 - - - - 60,397
Income taxes 1,578,087 - - - - 1,578,087
Leases 3,794,403 - 4,458,243 - - 8,252,646
Due from other governmental units 939,809 707,096 - 49,049 505,219 2,201,173
Due from other funds 2,396,560 - - - - 2,396,560
Due from component units 64,211 - - - - 64,211
Advances to component units 600,000 - - - 148,994 748,994
Prepaid items 271,961 25,067 26,451 - 7,905 331,384
Total assets $ 17,987,138 $ 3,699,024 $ 5,941,650 $ 17,044,522 $ 6,009,613 $ 50,681,947
LIABILITIES
Accounts payable $ 2,165,692 $ 154,402 $ 263,449 $ 1,229,639 $ 303,168 $ 4,116,350
Accrued liabilities 588,110 19,681 17,599 - 41,424 666,814
Due to other governmental units 16,706 4,695 - - 788 22,189
Due to other funds - - 1,072,733 - 33,684 1,106,417
Short-term note - - - - 84,297 84,297
Unearned revenues - unused Farmers Market tokens - - - - 26,331 26,331
Unearned revenues - expenditure-driven grants 100,854 - - 15,813,336 - 15,914,190
Unearned revenues - prepaid events - - 67,658 - - 67,658
Total liabilities 2,871,362 178,778 1,421,439 17,042,975 489,692 22,004,246
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - income taxes 460,000 - - - - 460,000
Related to leases 3,794,403 - 4,458,243 - - 8,252,646
Total deferred inflows of resources 4,254,403 - 4,458,243 - - 8,712,646
FUND BALANCES
Nonspendable
Prepaid items 271,961 25,067 26,451 - 7,905 331,384
Long-term advances 600,000 - - - - 600,000
Perpetual care 10,000 - - - 1,677,702 1,687,702
Restricted
Highways, streets and bridges 8,701 3,495,179 - - 789,134 4,293,014
Trinity Health Arena - - 35,517 - - 35,517
Law enforcement - - - - 23,161 23,161
Business improvement districts - - - - 176,733 176,733
Perpetual care - - - - 477,332 477,332
Other purposes - - - - 173,606 173,606
Committed for social equity program 189,037 - - - - 189,037
Assigned for capital projects and public improvements 1,800,000 - - 1,547 2,194,348 3,995,895
Unassigned 7,981,674 - - - - 7,981,674
Total fund balances 10,861,373 3,520,246 61,968 1,547 5,519,921 19,965,055
Total liabilities, deferred inflows of
resources and fund balances $ 17,987,138 $ 3,699,024 $ 5,941,650 $ 17,044,522 $ 6,009,613 $ 50,681,947
The accompanying notes are an integral part of this statement.
37
68
City of Muskegon
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30, 2022
Total fund balance—governmental funds $ 19,965,055
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not current financial
resources and, therefore, are not reported in the governmental funds.
Cost of capital assets $ 179,639,742
Accumulated depreciation (76,858,507) 102,781,235
Other long-term assets are not available to pay for current period
expenditures and, therefore, are reported as unavailable revenues
in the governmental funds.
Income taxes 460,000
Long-term liabilities in governmental activities are not due and payable in the
current period and, therefore, are not reported in the governmental funds.
Accrued interest payable (242,800)
Bonds and notes payable (30,403,188)
Compensated absences (2,215,261)
Net pension liability and related deferred outflows/inflows of resources (32,355,582)
Net other post employment benefits liability and related
outflows/inflows of resources (3,685,546) (68,902,377)
Internal service funds are used by management to charge the costs of certain activities
to individual funds. The assets and liabilities of the internal service funds are reported
with governmental activities in the Statement of Net Position.
Net position of the internal service funds 4,636,059
Internal balances representing the cumulative difference between
actual costs and amounts charged to business-type activities (831,523) 3,804,536
Net position of governmental activities $ 58,108,449
The accompanying notes are an integral part of this statement.
38
69
City of Muskegon
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Governmental Funds
For the year ended June 30, 2022
Major Street Trinity Health Other Total
General and Trunkline Arena State Grants Governmental Governmental
Fund Fund Fund Fund Funds Funds
REVENUES
Taxes $ 18,795,646 $ - $ - $ - $ - $ 18,795,646
Licenses and permits 2,306,048 - - - - 2,306,048
Intergovernmental revenues
Federal 291,918 - 625,498 9,234,029 2,952,413 13,103,858
State 6,479,990 4,809,424 - 1,244,987 2,538,375 15,072,776
Local 50,000 - - - 261,057 311,057
Charges for services 4,566,029 - 2,683,567 - 495,403 7,744,999
Fines and forfeitures 581,369 - - - 1,264 582,633
Investment earnings and rental income (93,350) 11,627 79,782 - 36,959 35,018
Income from assets managed by others - - - - (134,215) (134,215)
Other 1,167,117 323,508 14,904 - 1,104,169 2,609,698
Total revenues 34,144,767 5,144,559 3,403,751 10,479,016 7,255,425 60,427,518
EXPENDITURES
Current
Public representation services 1,758,928 - - - - 1,758,928
Administrative services 945,841 - - - - 945,841
Financial services 5,668,254 - - - - 5,668,254
Public safety 15,520,982 - - - 443 15,521,425
Public works 3,728,293 - - - 156,277 3,884,570
Highways, streets and bridges - 3,798,863 - - 1,998,785 5,797,648
Community and economic development 743,693 - - - - 743,693
Culture and recreation 2,839,480 - 2,274,570 - 484,929 5,598,979
Other governmental functions 485,024 - - - - 485,024
Debt service
Principal 907,462 230,000 - - 205,000 1,342,462
Interest and fees 390,771 3,503 - - 616,730 1,011,004
Bond issuance costs 1,000 - - - - 1,000
Capital outlay 4,662,678 - 1,987,141 4,721,218 4,835,674 16,206,711
Total expenditures 37,652,406 4,032,366 4,261,711 4,721,218 8,297,838 58,965,539
Excess of revenues over (under) expenditures (3,507,639) 1,112,193 (857,960) 5,757,798 (1,042,413) 1,461,979
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - - 1,204,675 1,204,675
Long-term debt issued 1,370,873 - - - - 1,370,873
Transfers in 5,798,549 - 865,000 40,750 3,128,500 9,832,799
Transfers out (3,998,250) - - (5,798,549) (401,000) (10,197,799)
Total other financing sources (uses) 3,171,172 - 865,000 (5,757,799) 3,932,175 2,210,548
Net change in fund balances (336,467) 1,112,193 7,040 (1) 2,889,762 3,672,527
Fund balances at beginning of year 11,197,840 2,408,053 54,928 1,548 2,630,159 16,292,528
Fund balances at end of year $ 10,861,373 $ 3,520,246 $ 61,968 $ 1,547 $ 5,519,921 $ 19,965,055
The accompanying notes are an integral part of this statement.
39
70
City of Muskegon
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2022
Net change in fund balances—total governmental funds $ 3,672,527
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report outlays for capital assets as expenditures. However,
in the Statement of Activities, the cost of these assets is allocated over their
estimated useful lives and reported as depreciation expense.
Depreciation expense $ (4,992,455)
Capital outlay 7,775,915 2,783,460
Revenues reported in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the governmental funds.
Income taxes (190,000)
The issuance of long-term debt provides current financial resources to
governmental funds, but increases liabilities in the Statement of Net Position.
Repayment of debt is an expenditure in the governmental funds, but reduces
long-term liabilities in the Statement of Net Position.
Issuance of long-term debt (1,370,873)
Repayment of principal on long-term debt 1,342,462 (28,411)
Changes in accrual of interest and amortization of premiums and discounts
Change in accrued interest payable 8,900
Amortization of premiums and discounts 121,900 130,800
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in the governmental funds.
Change in compensated absences (89,499)
Change in net pension liability and related deferred outflows/inflows of resources (1,779,430)
Change in net other post employment benefits liability
and related deferred outflows/inflows of resources 5,078,209 3,209,280
The internal service funds are used by management to charge the costs of
certain activities used to individual funds. The net revenue of certain activities
of the internal service fund is reported with governmental activities.
Change in net position of the internal service funds 510,910
Change in internal balances representing the current year difference
between actual costs and amounts charged to business-type activities (118,836) 392,074
Change in net position of governmental activities $ 9,969,730
The accompanying notes are an integral part of this statement.
40
71
City of Muskegon
STATEMENT OF NET POSITION
Proprietary Funds
June 30, 2022
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
ASSETS
Current assets
Cash and investments $ 1,883,569 $ - $ - $ 1,883,569 $ 3,559,579
Receivables
Accounts 1,636,556 1,490,380 15,121 3,142,057 333,192
Leases - 83,003 - 83,003 -
Due from other governmental units 50,101 82,509 - 132,610 -
Inventories 44,157 283,367 - 327,524 38,867
Prepaid items 62,653 83,677 3,520 149,850 229,096
Total current assets 3,677,036 2,022,936 18,641 5,718,613 4,160,734
Noncurrent assets
Restricted cash and investments 101,000 728,000 - 829,000 -
Leases receivable, less amounts due within one year - 857,733 - 857,733 -
Advances to component units - - - - 297,986
Capital assets
Land 16,188 103,500 22,562 142,250 65,000
Land improvements - 62,948 1,923,404 1,986,352 301,715
Buildings, improvements and systems 34,456,135 75,761,108 2,535,088 112,752,331 1,668,215
Machinery and equipment 157,622 3,101,790 60,620 3,320,032 10,313,517
Construction in progress 5,478,995 9,345,163 - 14,824,158 -
Less accumulated depreciation (12,681,088) (47,696,197) (3,560,198) (63,937,483) (9,524,983)
Net capital assets 27,427,852 40,678,312 981,476 69,087,640 2,823,464
Total noncurrent assets 27,528,852 42,264,045 981,476 70,774,373 3,121,450
Total assets 31,205,888 44,286,981 1,000,117 76,492,986 7,282,184
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 27,931 93,102 - 121,033 74,482
Related to other postemployment benefits 15,258 50,862 - 66,120 40,689
Total deferred outflows of resources 43,189 143,964 - 187,153 115,171
Total assets and deferred outflows of resources 31,249,077 44,430,945 1,000,117 76,680,139 7,397,355
The accompanying notes are an integral part of this statement.
41
72
City of Muskegon
STATEMENT OF NET POSITION—CONTINUED
Proprietary Funds
June 30, 2022
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
LIABILITIES
Current liabilities
Accounts payable $ 73,830 $ 562,003 $ 23,581 $ 659,414 $ 779,382
Accrued liabilities 54,043 134,267 1,038 189,348 60,116
Due to other governmental units 898,388 5,555 - 903,943 -
Due to other funds - 1,014,690 275,453 1,290,143 -
Unearned revenues - prepaid fees - - 113,943 113,943 -
Bonds and other obligations, due within one year 294,700 1,064,000 - 1,358,700 39,200
Total current liabilities 1,320,961 2,780,515 414,015 4,515,491 878,698
Noncurrent liabilities
Bonds and other obligations, less amounts due within one year 6,084,589 7,250,308 - 13,334,897 156,651
Net pension liability 465,950 1,553,167 - 2,019,117 1,242,534
Net other postemployment benefits liability 37,436 124,786 - 162,222 99,829
Total noncurrent liabilities 6,587,975 8,928,261 - 15,516,236 1,499,014
Total liabilities 7,908,936 11,708,776 414,015 20,031,727 2,377,712
DEFERRED INFLOWS OF RESOURCES
Related to leases - 940,736 - 940,736 -
Related to pension 104,253 347,509 - 451,762 278,007
Related to other postemployment benefits 39,591 131,972 - 171,563 105,577
Total deferred inflows of resources 143,844 1,420,217 - 1,564,061 383,584
Total liabilities and deferred inflows of resources 8,052,780 13,128,993 414,015 21,595,788 2,761,296
NET POSITION
Net investment in capital assets 21,147,238 32,540,211 981,476 54,668,925 2,823,464
Restricted for debt service 101,000 721,000 - 822,000 -
Unrestricted 1,948,059 (1,959,259) (395,374) (406,574) 1,812,595
Total net position $ 23,196,297 $ 31,301,952 $ 586,102 55,084,351 $ 4,636,059
Adjustment to report the cumulative internal balance for the net effect of the activity
between the internal service funds and the enterprise funds over time 831,523
Net position of business-type activities $ 55,915,874
The accompanying notes are an integral part of this statement.
42
73
City of Muskegon
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
OPERATING REVENUES
Charges for services $ 10,104,566 $ 8,483,668 $ 282,819 $ 18,871,053 $ 10,433,668
Other 194,076 523,089 9,597 726,762 158,582
Total operating revenues 10,298,642 9,006,757 292,416 19,597,815 10,592,250
OPERATING EXPENSES
Administration 664,312 1,439,537 11,169 2,115,018 958,063
Insurance premiums and claims - - - - 5,386,649
Wastewater treatment 4,847,582 - - 4,847,582 -
Wastewater maintenance 1,990,288 - - 1,990,288 -
Filtration plant operations - 2,621,015 - 2,621,015 -
Water distribution - 3,195,179 - 3,195,179 -
Other operations - - 345,305 345,305 3,701,160
Depreciation 630,870 1,916,908 107,417 2,655,195 499,466
Total operating expenses 8,133,052 9,172,639 463,891 17,769,582 10,545,338
Operating income (loss) 2,165,590 (165,882) (171,475) 1,828,233 46,912
NONOPERATING REVENUES (EXPENSES)
Investment earnings 4,421 19,435 - 23,856 25,649
Gain on sale of capital assets - - - - 38,349
Interest expense (83,739) (141,968) - (225,707) -
Total nonoperating revenue (expenses) (79,318) (122,533) - (201,851) 63,998
Income (loss) before transfers 2,086,272 (288,415) (171,475) 1,626,382 110,910
TRANSFERS
Transfers in - - - - 400,000
Transfers out - (35,000) - (35,000) -
Total transfers - (35,000) - (35,000) 400,000
Change in net position 2,086,272 (323,415) (171,475) 1,591,382 510,910
Net position at beginning of year 21,110,025 31,625,367 757,577 4,125,149
Net position at end of year $ 23,196,297 $ 31,301,952 $ 586,102 $ 4,636,059
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 118,836
Change in net position of business-type activities $ 1,710,218
The accompanying notes are an integral part of this statement.
43
74
City of Muskegon
STATEMENT OF CASH FLOWS
Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 11,047,199 $ 8,975,052 $ 316,684 $ 20,338,935 $ 169,736
Receipts from interfund services provided 132,980 257,743 - 390,723 10,433,668
Other receipts - - - - 1,266,428
Payments to suppliers (6,213,667) (3,421,627) (329,730) (9,965,024) (6,865,909)
Payments to employees (994,237) (2,655,749) (51,457) (3,701,443) (1,954,355)
Payments for interfund services used (846,355) (1,353,616) (24,735) (2,224,706) (848,990)
Net cash provided by (used for) operating activities 3,125,920 1,801,803 (89,238) 4,838,485 2,200,578
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - - - - 400,000
Transfers out - (35,000) - (35,000) -
Interfund borrowing (29,970) 1,014,690 267,063 1,251,783 (384,381)
Advances to component units - - - - 93,094
Net cash provided by (used for) noncapital financing activities (29,970) 979,690 267,063 1,216,783 108,713
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from long-term debt 3,913,081 2,671,931 - 6,585,012 -
Purchases of capital assets (4,773,444) (6,610,907) (177,825) (11,562,176) (659,722)
Principal paid on capital debt (272,000) (994,750) - (1,266,750) -
Interest paid on capital debt (84,439) (146,568) - (231,007) -
Proceeds from sale of capital assets - - - - 74,558
Net cash provided by (used for) capital and related financing activities (1,216,802) (5,080,294) (177,825) (6,474,921) (585,164)
CASH FLOW FROM INVESTING ACTIVITIES
Investment earnings 4,421 19,435 - 23,856 25,649
Net increase (decrease) in cash and investments 1,883,569 (2,279,366) - (395,797) 1,749,776
Cash and investments at beginning of year 101,000 3,007,366 - 3,108,366 1,809,803
Cash and investments at end of year $ 1,984,569 $ 728,000 $ - $ 2,712,569 $ 3,559,579
Reconciliation of cash and investments to the Statement of Net Position
Cash and investments $ 1,883,569 $ - $ - $ 1,883,569 $ 3,559,579
Restricted cash and investments 101,000 728,000 - 829,000 -
$ 1,984,569 $ 728,000 $ - $ 2,712,569 $ 3,559,579
Reconciliation of operating income (loss) to net cash provided by (used for)
operating activities
Operating income (loss) $ 2,165,590 $ (165,882) $ (171,475) $ 1,828,233 $ 46,912
Adjustments to reconcile operating income (loss) to net cash provided by
(used for) operating activities
Depreciation expense 630,870 1,916,908 107,417 2,655,195 499,466
Change in assets and liabilities
Receivables 881,537 226,038 23,319 1,130,894 1,277,582
Inventories (13,923) (78,314) - (92,237) (31,549)
Prepaid items (2,710) (1,420) (1,063) (5,193) 386
Accounts payable (511,981) 40,412 (39,367) (510,936) 510,189
Unearned revenues - - 949 949 -
Accrued liabilities (23,463) (135,939) (9,018) (168,420) (102,408)
Net cash provided by (used for) operating activities $ 3,125,920 $ 1,801,803 $ (89,238) $ 4,838,485 $ 2,200,578
The accompanying notes are an integral part of this statement.
44
75
City of Muskegon
STATEMENT OF NET POSITION
Fiduciary Funds
June 30, 2022
Other Post-
Employment
Benefits Custodial
Trust Fund Funds
ASSETS
Cash and investments $ 22,146,026 $ 816,055
Accounts receivable - 13,835
Total assets 22,146,026 829,890
LIABILITIES
Accounts payable - 19,517
Due to other governmental units - 622,373
Deposits held for others - 188,000
Total liabilities - 829,890
NET POSITION
Restricted for individuals, organizations, and other governments $ 22,146,026 $ -
The accompanying notes are an integral part of this statement.
45
76
City of Muskegon
STATEMENT OF CHANGES IN NET POSITION
Fiduciary Funds
For the year ended June 30, 2022
Other Post-
Employment
Benefits Custodial
Trust Fund Funds
ADDITIONS
Tax collections for other governments $ - $ 24,329,719
Other collections for third parties - 1,521,847
Employer contributions 2,091,172 -
Net investment income (loss) (2,001,928) -
Total additions 89,244 25,851,566
DEDUCTIONS
Payment of taxes to other governments - 24,329,719
Other payments to third parties - 1,521,847
Benefit payments 3,041,543 -
Administrative expenses 47,910 -
Total deductions 3,089,453 25,851,566
Change in net position (3,000,209) -
Net position at beginning of year 25,146,235 -
Net position at end of year $ 22,146,026 $ -
The accompanying notes are an integral part of this statement.
46
77
City of Muskegon
STATEMENT OF NET POSITION
Discretely Presented Component Units
June 30, 2022
Local
Development Tax
Finance Downtown Increment Brownfield
Authority - Development Finance Redevelopment
SmartZone Authority Authority Authorities Total
ASSETS
Current assets
Cash and investments $ 46,925 $ 336,989 $ 20,014 $ - $ 403,928
Accounts receivable - 32,616 - - 32,616
Total current assets 46,925 369,605 20,014 - 436,544
Noncurrent assets
Capital assets, net
Nondepreciable 400,000 - - - 400,000
Depreciable 589,881 - - - 589,881
Total noncurrent assets 989,881 - - - 989,881
Total assets 1,036,806 369,605 20,014 - 1,426,425
LIABILITIES
Current liabilities
Accounts payable - 109,697 - - 109,697
Accrued liabilities 5,400 4,289 - - 9,689
Due to other governmental units - 2,000 - - 2,000
Due to primary government - - - 64,211 64,211
Bonds and other obligations, due within one year 255,000 - - - 255,000
Total current liabilities 260,400 115,986 - 64,211 440,597
Noncurrent liabilities
Advances from primary government - - - 1,046,980 1,046,980
Bonds and other obligations, less amounts due
within one year 841,547 - - - 841,547
Total noncurrent liabilities 841,547 - - 1,046,980 1,888,527
Total liabilities 1,101,947 115,986 - 1,111,191 2,329,124
NET POSITION
Net investment in capital assets (106,666) - - - (106,666)
Unrestricted 41,525 253,619 20,014 (1,111,191) (796,033)
Total net position $ (65,141) $ 253,619 $ 20,014 $ (1,111,191) $ (902,699)
The accompanying notes are an integral part of this statement.
47
78
City of Muskegon
STATEMENT OF ACTIVITIES
Discretely Presented Component Units
For the year ended June 30, 2022
Net (Expense) Revenue and Changes in Net Position
Local
Program Revenue Development Tax
Operating Capital Finance Downtown Increment Brownfield
Grants and Grants and Authority - Development Finance Redevelopment
Functions/Programs Expenses Contributions Contributions SmartZone Authority Authority Authorities Total
Local Development Finance Authority - SmartZone
Community and economic development $ 172,648 $ - $ - $ (172,648) $ - $ - $ - $ (172,648)
Interest on long-term debt 24,999 - 200,000 175,001 - - - 175,001
Total Local Development Finance
Authority - SmartZone 197,647 - 200,000 2,353 - - - 2,353
Downtown Development Authority
Economic development 810,219 655,765 - - (154,454) - - (154,454)
Tax Increment Finance Authority
Community and economic development 50,000 - - - - (50,000) - (50,000)
48
Brownfield Redevelopment Authorities
Community and economic development 648,065 - - - - - (648,065) (648,065)
Interest on long-term debt 17,940 - - - - - (17,940) (17,940)
Total Brownfield Redevelopment Authorities 666,005 - - - - - (666,005) (666,005)
Total discretely presented component units $ 1,723,871 $ 655,765 $ 200,000 2,353 (154,454) (50,000) (666,005) (868,106)
General revenues
Property taxes 85,861 321,446 42,475 689,328 1,139,110
Grants and contributions not restricted to specific programs 3,084 - 9,596 24,215 36,895
Unrestricted investment income 112 543 58 644 1,357
Miscellaneous - - - 674 674
Total general revenues 89,057 321,989 52,129 714,861 1,178,036
Change in net position 91,410 167,535 2,129 48,856 309,930
Net position at beginning of year (156,551) 86,084 17,885 (1,160,047) (1,212,629)
Net position at end of year $ (65,141) $ 253,619 $ 20,014 $ (1,111,191) $ (902,699)
The accompanying notes are an integral part of this statement.
79
City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Muskegon (City) have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP) as applied to government units. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. The more significant of the City's accounting
policies are described below.
Reporting Entity
The City of Muskegon was incorporated October 6, 1919, under the provisions of the Home Rule Act of the
State of Michigan. The City is a municipal corporation governed by an elected mayor and six-member City
Commission and is administered by a city manager appointed by the City Commission. The accompanying
financial statements present the City and its component units, entities for which the government is considered
to be financially accountable. Blended component units, are, in substance, part of the primary government's
operations, even though they are legally separate entities. Thus, blended component units are appropriately
presented as funds of the primary government. Each discretely presented component unit is reported in a
separate column in the government-wide financial statements (see note below for description) to emphasize
that it is legally separate from the City.
Discretely Presented Component Units
Downtown Development Authority (DDA). The DDA’s sole purpose is the collection of property tax
incremental revenues, the issuance and repayment of debt and the construction of public facilities to promote
and facilitate economic growth in the downtown district. Members of the DDA are appointed by the City
Commission and the Authority is fiscally dependent on the City since the City Commission approves the
DDA budget and must approve any debt issuance. The DDA is presented as a governmental fund type.
Tax Increment Finance Authority (TIFA). The TIFA’s sole purpose is the collection of property tax
incremental revenues and promotion of economic development activities (including issuance of debt) in a
sub-section of the downtown district. Members of the TIFA are appointed by the City Commission and the
Authority is fiscally dependent on the City since the City Commission approves the TIFA budget and must
approve any debt issuance. The TIFA is presented as a governmental fund type.
Local Development Finance Authority (LDFA). The City has created three separate local development
finance authority districts under the aegis of the LDFA to promote and facilitate economic growth in the Port
City Industrial Park, the Medendorp Industrial Park, and the SmartZone Hi-Tech Park (SmartZone).
Currently only the SmartZone is active. The LDFA’s sole purpose is the collection of property tax
incremental revenues and the construction of public facilities within the districts. Members of the LDFA are
appointed by the City Commission and the Authority is fiscally dependent on the City since the City
Commission approves budgets and must approve any debt issuance. The LDFA districts are presented as
governmental fund types.
Brownfield Redevelopment Authority (BRA). There are six separate designated areas under the aegis of the
BRA – the Betten-Henry Street site, the former downtown mall site, the Terrace Point site, the Pigeon Hill
site, the Hartshorn Marina site, and the scattered housing site. The Authority’s sole purpose is the collection
of property tax incremental revenues and promotion of environmental remediation (including issuance of
debt) in designated brownfield areas. Members of the BRA are appointed by the City Commission and the
Authority is fiscally dependent on the City since the City Commission approves the BRA budget and must
approve any debt issuance. The BRA areas are presented as governmental fund types.
49
80
City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Reporting Entity—Continued
Discretely Presented Component Units—Continued
Complete financial statements of the component units can be obtained from their administrative offices,
933 Terrace Street, Muskegon, Michigan 49443.
Related Organizations
The following organizations are related to the City’s financial reporting entity:
Muskegon Hospital Finance Authority. The Muskegon Hospital Finance Authority was created by the City of
Muskegon in accordance with the laws of the State of Michigan. Members of the Hospital Finance Authority
are appointed by the City, but the City is not financially accountable for the Authority and therefore the
Authority is excluded from the accompanying financial statements. The Hospital Finance Authority’s sole
purpose is to issue tax-exempt debt for the benefit of Mercy Health Partners Hospital, which is located within
the City. The Authority has no assets or financial activity and does not prepare financial statements. The
Hospital Finance Authority has no taxing power. As of June 30, 2022, there was no outstanding debt issued
by the Hospital Finance Authority. The City is not obligated in any manner for repayment of debt issued by
the Hospital Finance Authority, as any debt is payable solely from contractual payments from the hospitals.
Muskegon Housing Commission. The Muskegon Housing Commission was created by the City of Muskegon
in accordance with the laws of the State of Michigan. Members of the Housing Commission are appointed by
the City, but the City is not financially accountable for the Commission and therefore the Commission is
excluded from the accompanying financial statements. The Housing Commission’s main purpose is to
administer activities that provide adequate housing facilities for low-income families and the elimination of
housing conditions that are detrimental to the public peace, health, safety, and welfare. The Commission’s
policy is to prepare its financial statements on the basis prescribed by the Department of Housing and Urban
Development. Accordingly, the summary information below (which is required by federal regulations), is not
intended to present financial position and results of operations in conformity with generally accepted
accounting principles. Summary financial information for the fiscal year ended September 30, 2021, the date
of its latest audited financial statements is as follows:
Total assets and deferred outflows of resources $ 3,562,172
Total liabilities and deferred inflows of resources (526,830)
Total net position $ 3,035,342
Total operating income $ 2,222,489
Total operating expenses (2,408,929)
Total nonoperating revenues 8
Capital contributions 4,557
Prior period adjustment 12,823
Change in net position $ (169,052)
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Basis of Presentation—Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on all of the nonfiduciary activities of the primary government and its component units.
All fiduciary activities are reported only in the fund financial statements. Governmental activities, which
normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are
reported separately from business-type activities, which rely to a significant extent on fees and charges to
external customers for support. Likewise, the primary government is reported separately from certain legally
separate component units for which the primary government is financially accountable.
While separate government-wide and fund financial statements are presented, they are interrelated. The
governmental activities column incorporates data from governmental funds and internal service funds, while
business-type activities incorporate data from the City’s enterprise funds. Separate financial statements are
provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded
from the government-wide financial statements.
As discussed earlier, the City’s discretely presented component units are reported in a separate column in the
government-wide financial statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments-in-lieu of taxes where the amounts are reasonably
equivalent in value to the interfund services provided and other charges between the City's water and sewer
functions and various other functions of the government. Elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned.
The fund financial statements provide information about the City’s funds, including its fiduciary funds and
blended component units. Separate statements for each fund category – governmental, proprietary, and
fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise
funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate
columns in the fund financial statements.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Major Street and Trunkline Fund accounts for gas and weight tax allocations to the City by the
Michigan Department of Transportation for construction and maintenance of major streets within the
City.
The Trinity Health Arena Fund accounts for revenues received for the operation and maintenance of
Trinity Health Arena.
The State Grants Fund accounts for grant revenues received from the State of Michigan for the purpose of
improvements and/or rehabilitation of City property, environmental remediation at lakeshore sites or new
infrastructure in the City’s downtown.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Basis of Presentation—Government-wide and Fund Financial Statements—Continued
The City reports the following three major proprietary funds:
The Sewer Fund accounts for user charges, operating expenses and debt service of the City’s sewer
system and pays for access to the County’s sewage treatment plant.
The Water Fund accounts for user charges, operating expenses and debt service of the City’s water
system.
The Marina and Launch Ramp Fund accounts for user fees collected and operating expenses for the
Hartshorn Marina and boat launch ramp facilities.
Additionally, the City reports the following fund types:
Internal Service Funds account for internal engineering services for City projects; the purchase, operation,
and depreciation of all City owned equipment; the payment of insurance claims and benefits; and the
operation, maintenance, and depreciation of the City’s public service building to other funds of the
government on a cost reimbursement basis.
The Other Post-Employment Benefit Trust Funds are used to report resources that are administered
through irrevocable trusts for the benefit of City employees and retirees.
The Custodial Funds are used to report fiduciary activities that are not required to be reported in pension
(and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds.
During the course of operations, the City has activity between funds for various purposes. Any residual
balances outstanding at year-end are reported as due from/to other funds and advances to/from other funds.
While these balances are reported in fund financial statements, certain eliminations are made in the
preparation of the government-wide financial statements. Balances between funds included in governmental
activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is
included as internal balances in the governmental activities column. Similarly, balances between the funds
included in business-type activities (i.e., enterprise funds) are eliminated so that only the net amount is
included as internal balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund
financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund
financial statements, certain eliminations are made in the preparation of the government-wide financial
statements. Transfers between the funds included in governmental activities are eliminated so that only the
net amount is included as transfers in the governmental activities column. Similarly, balances between funds
included in business-type activities are eliminated so that only the net amount is included as transfers in the
business-type activities column.
Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Measurement Focus and Basis of Accounting—Continued
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
The governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due. General capital asset acquisitions are reported as expenditures in
governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other
financing sources.
Income taxes, property taxes, franchise taxes, licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time
requirements, and the amount is received during the period or within the availability period for this revenue
source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the
qualifying expenditures have been incurred and all other eligibility requirements have been met. Only the
portion of special assessments receivable within 60 days of the end of the current fiscal period is considered
to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The proprietary and fiduciary funds are reported using the economic resources measurement focus and the
accrual basis of accounting.
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
Cash and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition.
Investments for the City are reported at fair value (generally based on quoted market prices).
The City has adopted an investment policy in compliance with State of Michigan statutes. Those statutes
authorize the City to invest in obligations of the United States, certificates of deposit, prime commercial
paper, securities guaranteed by United States agencies or instrumentalities, United States government or
federal agency obligation repurchase agreements, bankers’ acceptances, state-approved investment pools and
certain mutual funds.
The Other Post-Employment Benefit Trust Fund is held in trust by the Municipal Employees’ Retirement
System (MERS) and is subject to the investment policies of MERS and State of Michigan statutes allowing
diverse investments in stocks, corporate and government bonds, mortgages, real estate, and other investments.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance—Continued
Cash and Investments—Continued
The component unit’s cash and investments are maintained within the City’s investment pool.
For the purpose of the statement of cash flows, the City considers all assets held in the cash and investment
pool to be cash and cash equivalents because the investments are not identifiable to the specific funds and the
assets can be withdrawn at any time, similar to a demand deposit account.
Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories is
recorded as expenses when consumed rather than when purchased in the business-type activities.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements. The cost of prepaid items is recorded as
expenditures/expenses when consumed rather than when purchased.
Leases Receivable
The City is a lessor for certain noncancelable leases. The City recognizes a lease receivable and a deferred
inflow of resources in the government-wide and fund financial statements for each lease.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the
principal portion of lease payments received. The deferred inflow of resources is initially measured as the
initial amount of the lease receivable, adjusted for lease payment received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of
the lease term.
Key estimates and judgements include how the City determines (1) the discount rate is uses to discount the
expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancelable period of the lease. Lease receipts included in the measurement of
the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of a lease, and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to
significantly affect the amount of the lease receivable.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities column
in the government-wide financial statements. Capital assets are defined by the City as assets with an initial,
individual cost of more than $10,000 and an estimated useful life in excess of two years.
As the City constructs or acquires additional capital assets each period, including infrastructure assets, they
are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs
which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency
of the item or increase its estimated useful life. Donated capital assets are recorded at their estimated
acquisition value at the date of donation.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance—Continued
Capital Assets—Continued
Land and construction in progress are not depreciated. The other property, plant, equipment, and
infrastructure of the City are depreciated using the straight-line method over the following estimated useful
lives:
Capital Asset Classes Years
Land improvements 5-25
Leasehold improvements 10-25
Buildings and improvements 25-50
Utility buildings, improvements and systems 40-100
Furniture, vehicles and equipment 5-20
Infrastructure 15-50
Shared improvements 20
Defined Benefit Plan
The City offers a defined benefit pension plan to its employees through Municipal Employees Retirement
System (MERS). The City records a net pension liability for the difference between the total pension liability
calculated by the actuary and the Plan’s fiduciary net position. For purposes of measuring the net pension
liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
fiduciary net position have been determined on the same basis as they are reported by MERS. For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
Other Postemployment Benefit Costs
The City offers a single-employer, defined benefit retiree healthcare benefits to retirees. The City records a
net other postemployment benefit (OPEB) liability for the difference between the total OPEB liability
calculated by the actuary and the OPEB Plan’s fiduciary net position. For purposes of measuring the net
OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB
expense, information about the fiduciary net position of the OPEB Plan and additions to/deductions from the
OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the OPEB
Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with the benefit terms. Investments are reported at fair value.
Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditures) until then.
In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance—Continued
Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted
bond or grant proceeds) and unrestricted resources. In order to calculate the amounts of net position to report
as restricted and unrestricted in the government-wide and proprietary fund financial statements, a flow
assumption must be made about the order in which the resources are considered to be applied. It is the City’s
policy to consider restricted net position to have been depleted before unrestricted net position is applied.
Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources
(the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as
restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a
flow assumption must be made about the order in which the resources are considered to be applied. It is the
City’s policy to consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the
same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund
balance is applied last.
Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations
requiring the use of resources for specific purposes. The City itself can establish limitation on the use of
resources through either a commitment (committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for the specific purposes
determined by a formal action of the City’s highest level of decision-making authority. The City Commission
is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to the
end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains
in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes
but do not meet the criteria to be classified as committed. The City Commission has by resolution authorized
the city manager to assign fund balance. The City Commission may also assign fund balance as it does when
appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent
year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other
words, an additional action does not normally have to be taken for the removal of an assignment. Conversely,
as discussed above, an additional action is essential to either remove or revise a commitment.
The City has a minimum fund balance policy requiring unassigned fund balance of the General Fund be at
least 13 percent of prior year actual revenues.
Revenues and Expenditures/Expenses
Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and
contributions (including special assessments) that are restricted to meeting the operational or capital
requirements of a particular function or segment. All taxes, including those dedicated for specific purposes,
and other internally dedicated resources are reported as general revenues rather than as program revenues.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued
Revenues and Expenditures/Expenses—Continued
Property Taxes
All trade and property tax receivables are shown net of allowance for uncollectibles.
The City bills and collects its own property taxes and also collects taxes for the county, school and State of
Michigan. Taxes are levied and liened on December 1 on the taxable valuation of property (as defined by
state statutes) located in the Local Governmental Unit as of the preceding December 31. Uncollected real
property taxes as of the following March 1 are turned over by the City to the County for collection. The
County advances the City all of these delinquent real property taxes. The delinquent personal property taxes
remain the responsibility of the City. The City recognizes all available revenue from the current tax levy.
Available means collected within the current period or expected to be collected soon enough thereafter to be
used to pay liabilities of the current period (60 days).
The 2021 state taxable value for real/personal property of the City totaled approximately $628,694,000 of
which approximately $32,406,000 was captured by the component units. The ad valorem taxes levied
consisted of 9.918, 2.9754 and .0788 mills for the City’s general operating, sanitation and community
promotion purposes. These amounts are recognized in the General Fund with captured amounts shown in the
TIFA, LDFA SmartZone, DDA, and BRA component units.
Compensated Absences
City employees are granted vacation and sick leave in varying amounts based on length of service and
employee group. Unused vacation and sick leave days are paid to employees upon termination under limits
that vary by employee group. The liability for these compensated absences is accrued when incurred in the
government-wide and proprietary fund financial statements. The current portion of this debt is estimated
based on historical trends. A liability for these amounts is reported in the governmental funds only if they
have matured, for example, as a result of employee resignations and retirements.
Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues are charges to customers
for sales and services. The enterprise funds also recognize as operating revenue the portion of tap fees
intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
Comparative Data
Comparative total data for the prior year have been presented in selected sections of the accompanying
financial statements in order to provide an understanding of changes in the City’s financial position and
operations. However, comparative (i.e. presentation of prior year’s totals by fund type) data has not been
presented in each of the statements since its inclusion would make the statements unduly complex and
difficult to read. In addition, certain items in the 2021 financial statements have been reclassified to conform
to the 2022 presentation.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE B—STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the
General Fund and special revenue funds.
The appropriated budget is prepared by fund, function and department. The City Manager and department
heads may make transfers of appropriations within a department. Transfers of appropriations between
departments require the approval of the City Commission. The legal level of budgetary control is the
department level for the General Fund and the total expenditure or “fund” level for all other funds.
Appropriations in all budgeted funds lapse at the end of the fiscal year.
Excess of Expenditures Over Appropriations
During the year ended June 30, 2022, actual expenditures exceeded appropriations for:
Final
Budget Actual
General Fund
Culture and recreation
Parks maintenance $ 2,379,089 $ 2,482,189
Capital outlay 4,552,706 4,662,678
Transfers out 3,130,000 3,998,250
Trinity Health Arena Fund
Culture and recreation 2,160,000 2,274,570
These overexpenditures were funded with available fund balance.
Fund Deficits
As of June 30, 2022, the City’s Water Fund, Marina and Launch Ramp Fund, and Public Service Building
Fund had unrestricted fund net position deficits of $1,959,259, $395,374, and $204,432, respectively. These
deficits will be eliminated through future operations or an interfund transfer.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE C—DEPOSITS AND INVESTMENTS
As of June 30, 2022, the City had the following investments:
Weighted
Average
Maturity
Fair Value (Months) S&P Percent
Investment Type
Money market funds $ 229,997 1 AAA 0.5 %
Negotiable certificates of deposit 1,440,497 25 not rated 3.0
US agency obligations 8,606,409 318 AA+ 18.0
Commercial paper 597,900 2 AA 1.2
External investment pool 14,913,867 2 AAA 31.1
MERS investment funds 22,146,026 N/A not rated 46.2
Total fair value $ 47,934,696 100.0 %
Portfolio weighted average maturity 109
The City voluntarily invests certain excess funds in an external investment pool (Pool). The Pool is an
external investment pool of "qualified" investments for Michigan municipalities. The Pool is not regulated nor
registered with the SEC. The fair value of the City's investments is the same as the value of the Pool’s shares.
Deposit and Investment Risks
Interest rate risk
The City has a formal investment policy that limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. At least 10 percent of the City’s total
portfolio must be in instruments maturing in 30 days.
Credit risk
State law limits investments in commercial paper and corporate bonds to the two highest classifications issued
by nationally recognized statistical rating organizations. The City has no investment policy that would further
limit its investment choices.
Concentration of credit risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City investment in a single
issuer, by diversifying the investment portfolio so that the impact of potential losses from any one type of
security or issuer will be minimized. The City has a concentration of credit risk policy that limits investment
in commercial paper, eligible bankers’ acceptances and time certificates of deposit to 25 percent each of the
total portfolio. The City has more than 5 percent of its investments in the following securities:
Percent of
Security Total Investments
Federal Home Loan Mortgage Corporation obligations 7.4%
Government National Mortgage Association obligations 9.6%
Custodial credit risk - deposits
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be
returned to it. As of June 30, 2022, $12,371,824 of the City’s bank balance of $12,871,824 was exposed to
custodial credit risk because it was uninsured and uncollateralized. The City’s investment policy sets certain
credit requirements that a bank must meet for the City to deposit funds in it.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE C—DEPOSITS AND INVESTMENTS—Continued
Deposit and Investment Risks—Continued
Custodial credit risk - investments
This is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the
value of its investments or collateral securities that are in the possession of an outside party. The City has a
custodial credit risk policy for investments that requires that all investments that are held with a third-party
for safekeeping be in the City’s name.
Foreign currency risk
The City is not authorized to invest in investments which have this type of risk.
Restricted Assets
Restrictions are placed on assets by bond ordinance and City Commission action. At June 30, 2022, restricted
cash and investments in the Sewer and Water Fund of $101,000 and $728,000, respectively, were restricted
by bond ordinance.
NOTE D—ASSETS MANAGED BY OTHERS
As allowed by MCL 123.874 and MCL 128.4, the City is permitted to place monies in community
foundations.
The Funds
The City has six funds with the Community Foundation of Muskegon County (Community Foundation).
Lakeshore Trails Improvement Fund
The Lakeshore Trails Improvement Fund was established by the City primarily to be used for the general
support of the bike trails, which are located in the City of Muskegon. The agreement with the Community
Foundation allows the use of the Fund’s income in accordance with the Community Foundation’s spending
policy and principal in certain circumstances.
Cemetery Perpetual Care Fund
The City of Muskegon Cemetery Perpetual Care Fund was established by the City primarily to be used for the
care and maintenance of the cemeteries that are operated by the City. The agreement with the Community
Foundation allows the use of the Fund’s income in accordance with the Community Foundation’s spending
policy and principal in certain circumstances.
Pere Marquette and Margaret Drake Elliot Park Fund
The Pere Marquette and Margaret Drake Elliot Park Fund (Marquette and Elliot Park Fund) was established by
the City to be used for capital improvements at Pere Marquette and Margaret Drake Elliot Parks. The
agreement with the Community Foundation allows the use of the Fund’s income in accordance with the
Community Foundation’s spending policy and principal in certain circumstances.
Darl and Kathleen Staley Charity Fund
The Darl and Kathleen Staley Charity Fund (Staley Charity Fund) was established after the City received
monies from the Staley’s estate. The Fund is to be used for capital improvements needs at City parks. The
agreement with the Community Foundation allows the use of the Fund’s income in accordance with the
Community Foundation’s spending policy and principal in certain circumstances.
City of Muskegon Parks Fund
The City of Muskegon Parks Fund (Muskegon Parks Fund) was established by the City to primarily be used
for general maintenance and improvements to parks located in the City of Muskegon. The agreement with the
Community Foundation allows the use of the Fund’s income in accordance with the Community Foundation’s
spending policy and principal in certain circumstances.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE D—ASSETS MANAGED BY OTHERS—Continued
The Funds—Continued
City of Muskegon Events and Sponsorships Fund
The City of Muskegon Events and Sponsorships Fund (Events and Sponsorships Fund) was established after
the Community Foundation received monies from donors intended to be used for various events within the
City of Muskegon. The agreement with the Community Foundation allows the use of the Fund’s income in
accordance with the Community Foundation’s spending policy and principal in certain circumstances.
The Community Foundation invests the contributions to the funds in various types of marketable equity and debt
securities, U.S. Treasuries, commercial paper, and certificates of deposit. The majority of investments are
uninsured and uncollateralized.
Reporting of the Assets of the Funds
The investments held at the Community Foundation, which were contributed by the City to the funds along with
the earnings on these investments, are reported at fair value as assets of the City. The contributions to these funds
made by third party donors directly to the Community Foundation have been excluded from the assets of the City.
Summary of the Community Foundation Funds
A summary of revenues, expenses, and changes in the assets at fair value of the funds for the year ended June 30,
2022 follows:
Lakeshore
Trails Cemetery Marquette Staley Muskegon Events and
Improvement Perpetual and Elliot Charity Parks Sponsorships
Fund Care Fund Park Fund Fund Fund Fund Totals
Revenues
Contributions $ 2,155 $ - $ - $ - $ - $ 28,006 $ 30,161
Dividends and interest 1,733 37,167 2,407 11,099 619 11 53,036
Realized and unrealized gain
(loss) on investments (13,227) (158,498) (17,993) (83,654) (4,675) - (278,047)
(9,339) (121,331) (15,586) (72,555) (4,056) 28,017 (194,850)
Expenses
Grants and scholarships - - 4,316 - - 41,592 45,908
Administration fees 619 7,711 1,932 5,210 228 560 16,260
Revenues over expenses (9,958) (129,042) (21,834) (77,765) (4,284) (14,135) (257,018)
Total assets at beginning of year 78,543 1,456,616 115,338 512,550 28,597 14,688 2,206,332
Total assets at end of year 68,585 1,327,574 93,504 434,785 24,313 553 1,949,314
Less assets recorded as those
of the Foundation (48,489) - (93,504) (434,785) (15,398) (553) (592,729)
Assets reported on the Balance
Sheet/Statement of Net Position $ 20,096 $ 1,327,574 $ - $ - $ 8,915 $ - $ 1,356,585
The Board of Trustees of the Community Foundation has the power to modify any restriction or condition on the
distribution of funds for any specified charitable purpose or to a specified organization if, in the sole judgment of
the Board, such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent
with the charitable needs of the community served. The authority to modify restrictions is sometimes referred to
as “variance power” and is a legal standard imposed on all community foundations.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE E—FAIR VALUE MEASUREMENTS
The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level
3). The three levels of the fair value hierarchy are described below:
Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the City has the ability to access.
Level 2 Inputs to the valuation methodology include the following:
- Quoted prices for similar assets or liabilities in active markets;
- Quoted prices for identical or similar assets or liabilities in inactive markets;
- Inputs other than quoted prices that are observable for the asset or liability;
- Inputs that are derived principally from or corroborated by observable
market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the level 2 input must be
observable for substantially the full term of the asset or liability.
Level 3 Inputs to the valuation methodology are unobservable and significant to the fair
value measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest
level of any input that is significant to the fair value measurement. Valuation techniques used need to
maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have
been no changes in the methodologies used at June 30, 2022.
Money market funds: Valued at amortized cost, which approximates fair value.
Negotiable certificates of deposit, US agency obligations, and commercial paper: Valued at the closing
price reported on the active market on which the individual securities are traded.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE E—FAIR VALUE MEASUREMENTS—Continued
External investment pools, MERS investment funds, and assets managed by others: The assets are
valued based upon the City’s allocable share of the Michigan CLASS, MERS, and Community
Foundation of Muskegon County (Pools) pooled investment portfolios. The allocable shares are based on
the value of the underlying assets owned by the Pools, minus their liabilities.
The assets managed by others are valued monthly by the Pools and are allocated based upon each
organization’s calculated share of the Pools’ pooled investment portfolios. Each entity with an interest
within the pooled investments receives statements from the Pools indicating the additions to the
investments (via contributions), withdrawals from the investments (via grants), and the investment returns
allocated via a unitization process. The City calculates the fair value of its share of the pooled investment
assets held by the Pools based on the estimated fair value of the underlying assets. The Pools control the
investments and make all management and investment decisions.
The preceding methods described may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. Furthermore, while the City believes its valuation methods
are appropriate and consistent with other market participants, the use of different methodologies or
assumptions to determine the fair value of certain financial instruments could result in a different fair value
measurement at the reporting date.
The following table sets forth by level, within the fair value hierarchy, the City’s assets at fair value on a
recurring basis as of June 30, 2022:
Assets at Fair Value as of June 30, 2022
Level 1 Level 2 Level 3 Total
Money market funds $ - $ 229,997 $ - $ 229,997
Negotiable certificates of deposit 1,440,497 - - 1,440,497
US agency obligations 8,606,409 - - 8,606,409
Commercial paper 597,900 - - 597,900
External investment pools - 14,913,867 - 14,913,867
MERS investment funds - 22,146,026 - 22,146,026
Assets managed by others - 1,356,585 - 1,356,585
Total assets at fair value $ 10,644,806 $ 38,646,475 $ - $ 49,291,281
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE F—LEASES RECEIVABLE
The City has entered into the following lease agreements as a lessor:
Cell Towers
The City leases the right to use space on land and buildings owned by the City to various third parties as part
of three separate lease agreements for the operation of cell phone antennas. These lease terms are generally
for 5 years with automatic renewals and the City receives monthly payments totaling $94,615, increasing by 3
percent each year.
Trinity Health Arena
The City leases the right to use shared space at Trinity Health Arena to a third party as part of an agreement
with a term of 5 years and with automatic renewals. The City receives monthly payments totaling $127,500,
increasing by 4 percent each renewal period.
The City also leases the right to use and manage restaurant space at Trinity Health Arena to various third
parties as part of two separate lease agreements. These lease terms are generally for 5 years with automatic
renewals and the City receives monthly payments totaling $49,034, increasing by 5-10 percent each year.
Fire Station
The City leases the right to use office space at the West Western Avenue Fire Station to a third party as part
of an agreement with terms through December 2045. The City receives monthly payments totaling $465,667,
which are tied to the reimbursement of payments on the City’s 2016 Limited Tax General Obligation
Refunding and 2020A Capital Improvement Bonds at a rate of 20.24 percent and 100 percent of the bond
payments attributable to improvements and additions of the fire station, respectively.
For the year ended June 30, 2022, the City recognized $412,760 and $79,027 in lease revenue for
governmental activities and business-type activities, respectively. For the year ended June 30, 2022, the City
also recognized $223,157 and $15,588 in interest revenue for governmental activities and business-type
activities, respectively. The City has deferred inflows of resources associated with these leases that will be
recognized as revenue over the term of the leases. As of June 30, 2022, the balances of these deferred inflows
of resources were $8,252,646 and $940,736 for governmental activities and business-type activities,
respectively.
The future minimum payments to be received for these leases are as follows:
Year Ending Governmental Activities Business-type Activities
June 30, Principal Interest Principal Interest
2023 $ 384,081 $ 258,752 $ 83,003 $ 14,451
2024 395,885 245,088 87,286 13,091
2025 408,699 230,893 72,822 11,725
2026 424,591 216,160 57,495 10,746
2027 447,353 200,622 60,484 9,804
2028-2032 2,099,022 752,842 154,762 39,837
2033-2037 845,416 536,767 175,718 27,377
2038-2042 1,086,360 396,733 223,961 11,481
2043-2047 1,023,496 235,271 25,205 118
2048-2052 824,394 116,289 - -
2053-2057 307,540 27,774 - -
2058 5,809 24 - -
$ 8,252,646 $ 3,217,215 $ 940,736 $ 138,630
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE G—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:
Balance Balance
July 1, 2021 Additions Deductions June 30, 2022
Governmental activities:
Capital assets, not being depreciated:
Land $ 14,258,844 $ 45,538 $ - $ 14,304,382
Construction in progress 29,095,524 7,078,678 28,208,708 7,965,494
Total capital assets, not being depreciated 43,354,368 7,124,216 28,208,708 22,269,876
Capital assets, being depreciated:
Land improvements 5,446,304 532,932 - 5,979,236
Leasehold improvements 534,821 - - 534,821
Buildings and improvements 32,106,677 23,863,141 - 55,969,818
Furniture, vehicles and equipment 16,791,683 2,631,539 96,375 19,326,847
Infrastructure 81,269,715 2,492,517 2,759,934 81,002,298
Shared improvements 6,905,293 - - 6,905,293
Total capital assets, being depreciated 143,054,493 29,520,129 2,856,309 169,718,313
Less accumulated depreciation:
Land improvements 2,413,770 159,223 - 2,572,993
Leasehold improvements 497,384 5,674 - 503,058
Buildings and improvements 18,797,687 510,135 - 19,307,822
Furniture, vehicles and equipment 13,013,673 872,833 60,166 13,826,340
Infrastructure 43,496,575 3,598,791 2,759,934 44,335,432
Shared improvements 5,492,580 345,265 - 5,837,845
Total accumulated depreciation 83,711,669 5,491,921 2,820,100 86,383,490
Total capital assets, being
depreciated, net 59,342,824 24,028,208 36,209 83,334,823
Capital assets, net $ 102,697,192 $ 31,152,424 $ 28,244,917 $ 105,604,699
Business-type activities:
Capital assets, not being depreciated:
Land $ 142,250 $ - $ - $ 142,250
Construction in progress 11,912,532 8,394,483 5,482,857 14,824,158
Total capital assets, not being depreciated 12,054,782 8,394,483 5,482,857 14,966,408
Capital assets, being depreciated:
Land improvements 1,951,913 34,439 - 1,986,352
Buildings, improvements and systems 107,269,475 5,482,856 - 112,752,331
Machinery and equipment 3,320,032 - - 3,320,032
Total capital assets, being depreciated 112,541,420 5,517,295 - 118,058,715
Less accumulated depreciation:
Land improvements 1,850,120 10,901 - 1,861,021
Buildings, improvements and systems 56,527,098 2,578,528 - 59,105,626
Machinery and equipment 2,905,070 65,766 - 2,970,836
Total accumulated depreciation 61,282,288 2,655,195 - 63,937,483
Total capital assets, being
depreciated, net 51,259,132 2,862,100 - 54,121,232
Capital assets, net $ 63,313,914 $ 11,256,583 $ 5,482,857 $ 69,087,640
65
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE G—CAPITAL ASSETS—Continued
Depreciation
Depreciation expense was charged to functions as follows:
Governmental activities:
Public representation services $ 4,503
Adminstrative services 2,832
Public safety 261,386
Public works 18,017
Highways, streets and bridges 4,073,665
Community and economic development 66,269
Culture and recreation 539,484
General administration 26,299
Internal Service Fund depreciation 499,466
$ 5,491,921
Business-type activities:
Sewer $ 630,870
Water 1,916,908
Marina and Launch Ramp 107,417
$ 2,655,195
Balance Balance
July 1, 2021 Additions Deductions June 30, 2022
Component units:
Capital assets, not being depreciated:
Land $ 400,000 $ - $ - $ 400,000
Capital assets, being depreciated:
Building and improvements 3,798,258 - - 3,798,258
Less accumulated depreciation:
Building and improvements 3,035,729 172,648 - 3,208,377
Total capital assets, being
depreciated, net 762,529 (172,648) - 589,881
Capital assets, net $ 1,162,529 $ (172,648) $ - $ 989,881
Depreciation expense was charged to economic development.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2022 is as follows:
Due To/From Other Funds:
Receivable Fund Payable Fund Amount
General Fund Trinity Health Arena Fund $ 1,072,733
General Fund Lead Abatement Fund 32,418
General Fund Healthy Homes Fund 1,266
General Fund Water Fund 1,014,690
General Fund Marina and Launch Ramp Fund 275,453
$ 2,396,560
The outstanding balances between funds result from the payable funds having negative positions in the City’s
cash and investment pool. In addition, the Brownfield Redevelopment Authorities owe the General Fund
$64,211 for having a negative position in the City’s cash and investment pool.
The Brownfield Redevelopment Authorities have also been advanced $1,046,980 from the City’s
governmental activities as a long-term loan.
Interfund Transfers:
Transfers In Amount Transfers Out Amount
Nonmajor Governmental Funds
Local Streets Fund $ 100,000 General Fund $ 3,557,500
Trinity Health Arena Fund 865,000
Tree Replacement Fund 2,500
Farmers Market and
Kitchen 242 Fund 40,000
Public Improvement Fund 50,000
Convention Center Fund 2,500,000
3,557,500 3,557,500
Internal Service Funds
Public Service Building Fund 400,000 General Fund 400,000
General Fund 5,798,549 State Grants Fund 5,798,549
State Grants Fund 40,750 General Fund 40,750
Nonmajor Governmental Funds Nonmajor Governmental Funds
Farmers Market and Senior Millage Fund 85,000
Kitchen 242 Fund 85,000 HOME Rehabilitation Fund 316,000
Public Improvement Fund 316,000
401,000 401,000
Nonmajor Governmental Funds
Lakeshore BID Fund 35,000 Water Fund 35,000
$ 10,232,799 $ 10,232,799
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS—Continued
The General Fund transferred funds to the Trinity Health Arena Fund, Public Service Building Fund, and
other funds for operation subsidies. The General Fund transferred funds to the Local Streets Fund and
Convention Center Fund for capital purposes. The State Grants Fund transferred funds to the General Fund
for various American Rescue Plan Act projects. The Senior Millage Fund transferred funds to the Farmers
Market and Kitchen 242 Fund to provide services to seniors. Other transfers between funds were made to
meet grant matching requirements or other operational needs.
NOTE I—SHORT-TERM DEBT
Summary of Changes in Short-Term Liabilities
The following is a summary of short-term liabilities activity for the City for the year ended June 30, 2022.
Balance Balance
July 1, 2021 Additions Deductions June 30, 2022
Governmental activities:
Short-term note $ 1,108,007 $ 233,503 $ 1,257,213 $ 84,297
The purpose of all short-term borrowings are to provide resources for infill housing within the City of
Muskegon. The form of financing used is a short-term non-revolving draw note with amounts advanced at
the City’s discretion. Interest amounts are at a variable interest rate of 1.25 percent above the 30 day LIBOR,
adjusted monthly. Borrowed amounts will be repaid as infill housing units are sold with final payment being
due three years from the closing date.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE J—LONG-TERM DEBT
Summary of Changes in Long-Term Liabilities
The following is a summary of long-term liabilities activity for the City for the year ended June 30, 2022.
Balance Balance Due Within
July 1, 2021 Additions Deductions June 30, 2022 One Year
Governmental activities:
Public placement debt
General obligation debt $ 29,670,000 $ - $ 1,145,000 $ 28,525,000 $ 970,000
Discount (135,650) - (7,500) (128,150) -
Premium 962,327 - 129,400 832,927 -
Direct borrowings and
direct placements
Installment purchase
agreements - 1,370,873 197,462 1,173,411 268,269
Compensated absences 2,286,388 1,944,694 1,819,970 2,411,112 482,200
Governmental activities
long-term liabilities $ 32,783,065 $ 3,315,567 $ 3,284,332 $ 32,814,300 $ 1,720,469
Business-type activities:
Public placement debt
Revenue obligations $ 9,056,453 $ 6,585,012 $ 1,266,750 $ 14,374,715 $ 1,295,000
Compensated absences 270,451 336,577 288,146 318,882 63,700
Business-type activities
long-term liabilities $ 9,326,904 $ 6,921,589 $ 1,554,896 $ 14,693,597 $ 1,358,700
Component units:
Public placement debt
General obligation debt $ 1,325,000 $ - $ 245,000 $ 1,080,000 $ 255,000
Premium 27,248 - 10,701 16,547 -
Component unit long-
term liabilities $ 1,352,248 $ - $ 255,701 $ 1,096,547 $ 255,000
69
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE J—LONG-TERM DEBT—Continued
Public Placement Debt
General Obligation Debt
The City has issued general obligation debt to provide funds for the acquisition and construction of major
capital facilities. General obligation debt is a direct obligation and pledges the full faith and credit of the City.
This debt is generally issued as serial bonds with varying amounts of principal maturing each year. Certain
debt issued by the City’s component units is also backed by the full faith and credit of the City if there is a
shortfall in tax increment revenues.
General obligation debt outstanding as of June 30, 2022 is as follows:
Original Date of
Borrowing Interest Rate Maturity Balance
General obligation debt:
Governmental activities:
2016 Limited Tax General Obligation
Refunding Bonds $ 4,535,000 3% - 4% October 2032 $ 3,510,000
2019 Capital Improvement Bonds 19,420,000 1.88% - 3.58% December 2049 19,040,000
2020A Capital Improvement Bonds 4,325,000 2.5% - 5% October 2040 4,005,000
2020B Capital Improvement Bonds 2,055,000 .68% - 3.2% October 2041 1,970,000
$ 28,525,000
Component units:
2012 LDFA Tax Increment Refunding Bonds $ 4,100,000 3% - 4% November 2025 $ 1,080,000
Revenue Obligations
The City has issued bonds where the income derived from the acquired or constructed assets is pledged to pay
debt service. Revenue obligations outstanding as of June 30, 2022 are as follows:
Original Date of
Borrowing Interest Rate Maturity Balance
Revenue obligations:
Business-type activities:
2004 Drinking Water State Revolving Fund $ 13,900,000 2.13% October 2025 $ 3,265,000
2019 Water Supply System Junior Lien Bond 2,000,000 2% October 2025 1,535,000
2019 Sanitary Sewer System Junior Lien Bond 11,500,000 2% October 2033 2,755,000
2020 Water Supply System Junior Lien Bond 3,829,101 2% April 2041 3,294,101
2020 Sanitary Sewer System Junior Lien Bond 4,620,614 2% April 2041 3,525,614
$ 14,374,715
The City has pledged future water customer revenues, net of specified operating expenses, to repay the 2004
Drinking Water State Revolving Fund Loan. Proceeds from the issuance were used to make improvements to
the City’s water supply system. The bond is payable solely from water customer net revenues and is payable
through 2025. Annual principal and interest payments on the bond are expected to require less than 48
percent of net revenues through 2025. The total principal and interest remaining to be paid on the bond is
$3,405,517. Principal and interest paid for the year ended June 30, 2022 and total customer net revenues were
$852,616 and $1,770,461, respectively.
The City was in compliance in all material respects with all the revenue bond ordinances at June 30, 2022.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE J—LONG-TERM DEBT—Continued
Public Placement Debt—Continued
Installment Purchase Agreements
The City has entered into an installment agreement for a ladder truck in 2021. The installment purchase
agreement is secured by the equipment purchase if the City defaults under the agreement. Installment
purchase agreements outstanding as of June 30, 2022 are as follows:
Original Date of
Borrowing Interest Rate Maturity Balance
Installment purchase agreements:
Governmental activities:
2021 Equipment Installment Loan $ 1,370,873 1.78% October 2025 $ 1,173,411
For governmental activities, pension liabilities (i.e. net pension and OPEB liabilities), claims and judgments
and compensated absences are generally liquidated by the General Fund.
In 2005, the County of Muskegon began making improvements to the regional sewer treatment facilities. The
project was funded with $17,500,000 bonds issued through the State of Michigan Clean Water Revolving
Fund Loan Program. The County operates the system and makes payments on the bonds with user charges to
the local units. The City has pledged its limited tax full faith and credit for the payment of its portion of the
debt should user charges collected by the County be insufficient to make the debt payments. The City’s
portion of the debt on June 30, 2022 was approximately $1,813,000. The City is unaware of any
circumstances that would cause a shortfall in the near future.
Annual debt service requirements to maturity for public placement debt and for direct borrowings and direct
placements outstanding as of June 30, 2022 follow:
Governmental Activities
Direct Borrowings and Business-type Activities
Year Ending Public Placement Debt Direct Placements Public Placement Debt
June 30, Principal Interest Principal Interest Principal Interest
2023 $ 970,000 $ 957,231 $ 268,269 $ 18,471 $ 1,295,000 $ 283,870
2024 1,050,000 926,991 273,023 13,717 1,330,000 256,720
2025 1,100,000 892,982 277,860 8,880 1,355,000 228,948
2026 1,140,000 856,998 282,784 3,956 1,380,000 200,607
2027 1,180,000 817,356 71,475 210 550,000 180,882
2028-2032 6,105,000 3,399,345 - - 2,925,000 734,260
2033-2037 3,890,000 2,570,905 - - 3,210,000 430,510
2038-2042 4,440,000 1,913,763 - - 2,329,715 107,546
2043-2047 4,980,000 1,117,090 - - - -
2048-2050 3,670,000 201,554 - - - -
$ 28,525,000 $ 13,654,215 $ 1,173,411 $ 45,234 $ 14,374,715 $ 2,423,343
71
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE J—LONG-TERM DEBT—Continued
Public Placement Debt—Continued
Component Units
Year Ending Public Placement Debt
June 30, Principal Interest
2023 $ 255,000 $ 28,575
2024 265,000 20,775
2025 275,000 12,675
2026 285,000 4,275
2027 - -
2028-2032 - -
2033-2037 - -
2038-2042 - -
2043-2047 - -
2048-2050 - -
$ 1,080,000 $ 66,300
Annual debt service requirements to maturity by type of debt as of June 30, 2022 follow:
Installment
Revenue Purchase
General Obligation Debt Obligations Agreements
Year Ending Governmental Component Business-type Governmental
June 30, Activities Units Activities Activities
2023 $ 1,927,231 $ 283,575 $ 1,578,870 $ 286,740
2024 1,976,991 285,775 1,586,720 286,740
2025 1,992,982 287,675 1,583,948 286,740
2026 1,996,998 289,275 1,580,607 286,740
2027 1,997,356 - 730,882 71,685
2028-2032 9,504,345 - 3,659,260 -
2033-2037 6,460,905 - 3,640,510 -
2038-2042 6,353,763 - 2,437,261 -
2043-2047 6,097,090 - - -
2048-2050 3,871,554 - - -
$ 42,179,215 $ 1,146,300 $ 16,798,058 $ 1,218,645
72
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE K—OTHER INFORMATION
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; injuries to employees and natural disasters. The City manages its liability and property
risk by participating in the Michigan Municipal Risk Management Authority (MMRMA), a public entity risk
pool providing property and liability coverage to its participating members. The City pays an annual
premium to MMRMA for its insurance coverage. The MMRMA is self-sustaining through member
premiums and provides, subject to certain deductibles, occurrence-based casualty coverage for each incident
and occurrence-based property coverage to its members by internally assuring certain risks and reinsuring
risks through commercial companies. A $150,000 deductible is maintained to place the responsibility for
small charges with the City. Settled claims resulting from these risks have not exceeded insurance coverage
in any of the past three fiscal years. Changes in the fund’s claim liability amount in 2022 and 2021 were as
follows:
Current Year
Balance Claims and Balance
at Beginning Changes in Claims at End
Year Ended of Year Estimates Payments of Year
June 30, 2022 $ 103,646 $ 556,421 $ 173,314 $ 486,753
June 30, 2021 133,364 138,186 167,904 103,646
The City manages its workers' compensation risk by participating in the Michigan Municipal Workers'
Compensation Fund (MMWCF), a public entity risk pool providing workers' compensation coverage to its
participating members. The City pays an annual premium to MMWCF for its workers' compensation
coverage. The MMWCF is self-sustaining through member premiums and provides statutory workers'
compensation coverage to its members by internally assuring certain risks and reinsuring risks through
commercial companies. Settled claims resulting from these risks have not exceeded insurance coverage in
any of the past three fiscal years.
The City is self-insured for employee health care benefits for those employees selecting the City plan over
other options. Under this plan, the General Insurance Fund provides coverage for up to a maximum of up to
$500,000 per covered individual’s lifetime. As of June 30, 2022, the claims liability including incurred but
not reported claims was $33,172. A liability was recorded in the accompanying financial statements for the
estimated claims liability. The claims liability was based on past experience, a review of pending claims and
other social and economic factors. The above estimate was not discounted and there were no outstanding
claims for which annuity contracts have been purchased in the claimant’s name. No significant reductions in
insurance coverage were made in the last fiscal year. Settled claims have not exceeded the commercial
coverage in any of the past three fiscal years. Changes in the fund’s claim liability amount in 2022 and 2021
were as follows:
Current Year
Balance Claims and Balance
at Beginning Changes in Claims at End
Year Ended of Year Estimates Payments of Year
June 30, 2022 $ 63,118 $ 4,738,715 $ 4,768,661 $ 33,172
June 30, 2021 111,410 4,414,715 4,463,007 63,118
73
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE K—OTHER INFORMATION—Continued
Contingencies
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the federal and state governments. Any disallowed claims, including amounts already collected,
may constitute a liability to the applicable funds. The amount, if any, of expenditures that may be disallowed
by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be
immaterial.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, in the opinion of the City's counsel the resolution of these matters will not have a material
adverse effect on the financial condition of the City.
Commitments
The City has several contracts for street projects including water and sewer system improvements and other
capital improvements as of June 30, 2022 with a remaining amount of approximately $13,605,000.
Approximately $1,722,000 and $1,351,000 of the commitments in the Sewer and Water funds, respectively,
are being financed by long-term debt with the remainder being paid out of available funds as follows:
Fund Amount
General $ 621,000
Major Street and Trunkline 4,078,000
Mercy Health Arena 833,000
Public Improvement 105,000
State Grant 2,203,000
Sewer 2,237,000
Water 3,528,000
$ 13,605,000
The City has also committed to allocating 35 percent of local marihuana excise taxes received to their
Michigan Social Equity Program. As of June 30, 2022, the City has committed approximately $189,000 of
fund balance in the General Fund to this program.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE L—TAX ABATEMENTS
Industrial Facilities Exemption
The City entered into property tax abatement agreements with local businesses under the Plant Rehabilitation
and Industrial Developments Act, (known as the Industrial Facilities Exemptions or IFTs) PA 198 of 1974, as
amended. The IFTs provides a tax incentive to manufacturers to enable renovation and expansion of aging
facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities.
Properties qualifying for IFT status are taxed at half the local property tax millage rate applicable to other real
and personal property in the City for a term of one to twelve years as determined by the City.
For the year ended June 30, 2022, the City abated property taxes revenues totaling $107,143 under this
program.
Brownfield Redevelopment Authority
The City entered into property tax abatement agreements with local businesses under the Brownfield
Redevelopment Act, PA 381 of 1996, as amended. Brownfield properties are those in which the
redevelopment or reuse of property may be complicated by the presence or perception of contamination.
Brownfields use tax increment financing where growth in taxable value above the initial value of the
Brownfield is captured and used to repay the developer for remediation costs.
For the year ended June 30, 2022, the City abated property taxes revenues totaling $185,801 under this
program.
Payment in Lieu of Taxes (PILOT)
The City uses the State Housing Development Authority Act, PA 346 of 1966, as amended, to enter into
agreements that provide for a service charge in lieu of taxes to encourage the development of housing of its
elderly citizens of low and moderate income.
For the year ended June 30, 2022, the City abated property taxes revenues totaling $149,880 under this
program.
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN
Defined Benefit Pension Plan
Plan Description
The City’s defined benefit pension plan provides certain retirement, disability and death benefits to plan
members and beneficiaries. The City participates in the Municipal Employees Retirement System (MERS) of
Michigan. MERS is an agent multiple-employer, statewide public employee pension plan established by the
Michigan Legislature under Public Act 135 of 1945 and administered by a nine member Retirement Board.
MERS issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained accessing the MERS website at
www.mersofmich.com.
Benefits Provided
Public Act 427 of 1984, as amended, established and amends the benefit provisions of the participants in
MERS. The Plan covers all full-time employees hired prior to January 2005. Beginning in January 2005, the
various employee divisions began to be closed. By July 2006, all employee divisions were closed.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Benefits Provided—Continued
Benefits provided are based on the following by employee division:
Normal Reduced
Vesting Retirement Early Early
Mulitplier Period Age Retirement Retirement
Non-Union General 2.25%* 5 years 60 55/25 50/25 or 55/15
Non-Union Police 3.00% 10 years 55 53/25 50/25
Clerical 2.25%* 5 years 60 55/25 50/25 or 55/15
Department of Public Works 2.25%* 10 years 60 55/30 50/25 or 55/15
Police Patrol 3.00%* 10 years 55 50/25 Not applicable
Police Command 3.00% 10 years 55 50/25 Not applicable
Fire 2.75% 10 years 55 53/25 50/25
*Effective January 2017, the multiplier for Non-Union General and Department of Public Works was changed
to 2.00% and the multiplier for Police Patrol was changed to 2.675%. Effective December 2018, the
multiplier for Clerical was changed to 2.00%.
Final average compensation is calculated based on 3 years.
Employees Covered by Benefit Terms
At December 31, 2021 valuation date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 337
Inactive employees entitled to but not yet receiving benefits 33
Active employees 62
Total employees covered by MERS 432
Contributions
The City is required to contribute amounts at least equal to the actuarially determined rate, as established by
the MERS Retirement Board. The actuarially determined rate is the estimated amount necessary to finance
the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability. The City may establish contribution rates to be paid by its covered employees.
For the year ended June 30, 2022, the City had a flat-dollar employer contribution to the Plan of $3,724,080
in lieu of a percentage of covered employee payroll, as the Plan is closed to new employees. Member
contributions range from 4 percent to 6.5 percent.
Net Pension Liability
The City’s net pension liability was measured as of December 31, 2021, and the total pension liability used to
calculate the net pension liability was determined by an annual actuarial valuation as of that date.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Actuarial Assumptions
The total pension liability in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.5 percent
Salary increases 3.0 percent in the long-term
Investment rate of return 7.00 percent, net of investment and administrative expenses
including inflation
Although no specific price inflation assumptions are needed for the valuation, the 3.0 percent long-term wage
inflation assumption would be consistent with a price inflation of 3-4 percent. Mortality rates used were
based on a version of Pub-2010 and fully generational MP-2019.
The actuarial assumptions used in valuation were based on the results of the most recent actuarial experience
study of 2014 through 2018.
The long-term expected rate of return on pension plan investments was determined using a model method in
which the best-estimate ranges of expected future real rates of return (expected returns, net of investment and
administrative expenses and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Target Long-Term Long-Term
Allocation Expected Expected
Target Gross Rate of Gross Rate Inflation Real Rate
Asset Class Allocation Return of Return Assumption of Return
Global equity 60.0% 7.00% 4.20% 2.50% 2.70%
Global fixed income 20.0% 4.50% 0.90% 2.50% 0.40%
Private assets 20.0% 9.50% 1.90% 2.50% 1.40%
Total 100.0% 7.00% 4.50%
Discount Rate
The discount rate used to measure the total pension liability was 7.25 percent for 2021. The current discount
rate shown for GASB 68 purposes is higher than the MERS assumed rate of return. This is because for
GASB 68 purposes, the discount rate must be gross of administrative expenses, whereas for funding purposes,
it is net of administrative expense. The projection of cash flows used to determine the discount rate assumed
that employer and employee contributions will be made at rates agreed upon for employees and the actuarially
determined rate for employers. Based on those assumptions, the pension plan's fiduciary net position was
projected to be available to pay all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Changes in the Net Pension Liability
Increase (Decrease)
Plan Net Pension
Total Pension Fiduciary Liability
Liability (a) Position (b) (a)-(b)
Balance at January 1, 2021 $ 125,918,365 $ 93,025,193 $ 32,893,172
Changes for the year
Service cost 529,832 - 529,832
Interest 9,237,064 - 9,237,064
Difference between expected and
actual experience 256,636 - 256,636
Changes in assumptions 4,396,829 - 4,396,829
Contributions - employer - 3,313,056 (3,313,056)
Contributions - employee - 304,680 (304,680)
Net investment income - 12,779,029 (12,779,029)
Administrative expenses - (146,581) 146,581
Benefit payments including refund of
employee contributions (9,285,923) (9,285,923) -
Net changes 5,134,438 6,964,261 (1,829,823)
Balance at December 31, 2021 $ 131,052,803 $ 99,989,454 $ 31,063,349
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 7.25 percent,
as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (6.25 percent) or 1-percentage-point higher (8.25 percent) than the current rate:
1% Decrease Current Discount 1% Increase
(6.25%) Rate (7.25%) (8.25%)
City's net pension liability $ 45,217,643 $ 31,063,349 $ 19,159,352
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $5,712,267. At June 30, 2022, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected
and actual net investment income $ - $ 6,950,178
Contributions subsequent to the
measurement date* 1,862,040 -
Total $ 1,862,040 $ 6,950,178
*The amount reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction in the net pension liability for the year ending June 30,
2023.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense as follows:
Year Ending
June 30, Amount
2023 $ (827,997)
2024 (2,930,530)
2025 (2,003,322)
2026 (1,188,329)
Payables to the Pension Plan
At June 30, 2022, the City reported a payable of $329,476 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2022.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Contribution Pension Plan
The City also maintains a defined contribution plan offered by MERS for its full-time employees hired after
the defined benefit plan was closed to new participants.
Benefit terms, including contribution requirements, for the MERS defined contribution plan are established
and may be amended by the City Commission as determined by negotiated labor contracts. The City is
required to contribute 3 percent to 13 percent of a qualified employees’ annual compensation each year
depending on employee group. Qualified employees are required to contribute 0 percent to 8 percent of
annual compensation depending on employee group. For the year ended June 30, 2022, City and employee
contributions were $1,225,250 and $520,495, respectively.
Employees are immediately vested in their own contributions and earnings on those contributions and become
vested in City contributions and earnings on City contributions by 20 percent for each full year of service,
leaving employees fully vested after five years of service. Nonvested City contributions are forfeited upon
termination of employment. Such forfeitures are used to cover a portion of the pension plan’s administrative
expenses. For the year ended June 30, 2022, forfeitures reduced the City’s pension expense by $83,099.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The Plan, available to all full-time employees at their option, permits participants to defer
a portion of their salary until future years. Payments from the deferred compensation plan are not available to
participants until termination, retirement, death, or unforeseeable emergency. Active participants are allowed
to borrow from their accumulated assets for limited purposes such as family education costs, medical costs, or
down payment for a new home. The City must approve program loans.
The Plan has created a trust for the exclusive benefit of the Plan’s participants and beneficiaries under rules
provided by Internal Revenue Code Section 401(f).
NOTE N—OTHER POSTEMPLOYMENT BENEFITS
Retiree Healthcare Plan
Plan Description
The City’s defined benefit OPEB Plan, the City of Muskegon Retiree Healthcare Plan (OPEB Plan), provides
healthcare benefits to certain employees and their spouses upon retirement. The Plan is a single-employer
defined benefit plan administered by the City Commission. The benefits are provided under collective
bargaining agreements and at the discretion of the City Commission. The OPEB Plan does not issue a
publicly available report.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Retiree Healthcare Plan—Continued
Benefits Provided
The OPEB Plan provides medical and dental insurances for eligible retirees and spouses who meet the
following criteria:
Normal
Vesting Retirement Early
Eligibility Period Age Retirement
Non-Union General Hired before January 1, 2011 5 years 60 55/25
Non-Union Police Hired before January 1, 2011 10 years 55 53/25
Clerical Hired before January 1, 2009 10 years 60 55/30
Department of Public Works Hired before January 1, 2011 10 years 60 55/30
Police Patrol Hired before January 1, 2012 10 years 55 50/25
Police Command Hired before January 1, 2010 10 years 55 50/25
Fire Hired before January 1, 2010 10 years 55 53/25
Benefits are provided through a third party insurer.
Employees Covered by Benefit Terms
At the December 31, 2021 valuation, the following employees were covered by the benefit terms:
Active members 81
Inactive members 31
Retirees and beneficiaries 309
Total employees covered by OPEB Plan 421
Contributions
The OPEB Plan’s funding policy is that the City will contribute any required amounts as determined by an
annual actuarial valuation as a reference but not as a definitive requirement. There are no long-term contracts
for contributions to the OPEB Plan. The OPEB Plan has no legally required reserves. For the year ended
June 30, 2022, the City made payments for postemployment healthcare benefits of $650,383.
Net OPEB Liability
The City’s net OPEB liability was measured as of December 31, 2021, and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation as December 31, 2021.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Actuarial Assumptions
The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.5 percent
Salary increases 0.0 percent
Investment rate of return 7.35 percent (including inflation), net of administrative and investment expenses
Healthcare cost trend rates Pre-Medicare: 7.25 percent graded down by .25 per year to an ultimate rate of 4.5 percent
Post-Medicare: 5.5 percent graded down by .25 per year to an ultimate rate of 4.5 percent
Mortality
Mortality rates for police and fire were as set forth in the Public Safety 2010 Employee and Healthy Retiree,
headcount weighted, MP-2021 improvement scale. Mortality rates for others were as set forth in the Public
General 2010 Employee and Healthy Retiree, headcount weighted, MP-2021 improvement scale.
Investment Rate of Return
The long-term rate of return on retirement plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB Plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of
return for each major asset class included in the OPEB Plan’s target asset allocation are summarized in the
following table:
Target Long-Term Long-Term
Allocation Expected Expected
Target Gross Rate of Gross Rate Inflation Real Rate
Asset Class Allocation Return of Return Assumption of Return
Global equity 60.0% 7.75% 4.65% 2.50% 3.15%
Global fixed income 20.0% 3.75% 0.75% 2.50% 0.25%
Private investments 20.0% 9.75% 1.95% 2.50% 1.45%
Total 100.0% 7.35% 4.85%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.35 percent. The projection of cash flows
used to determine the discount rate assumed that the City will make future contributions at levels at least as
high as the 2021 contribution up to 8 percent higher per year. Based on this assumption, the OPEB Plan’s
fiduciary net position was projected to be sufficient to make projected future benefit payments of current plan
members. For projected benefits that are covered by projected assets, the long-term expected rate was used to
discount the projected benefits. From the year that benefit payments were not projected be covered by the
projected assets (the “depletion date”, not applicable for this plan), projected benefits were discounted at a
discount rate reflecting a 20-year AA/Aa tax-exempt municipal bond yield. A single equivalent discount rate
that yields the same present value of benefits is calculated. This discount rate is used to determine the total
OPEB liability. As of December 31, 2020 the discount rate used to value OPEB liabilities was 6.24 percent.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Changes in the Net OPEB Liability
Increase (Decrease)
Net OPEB
Total OPEB Plan Fiduciary Liability
Liability (a) Position (b) (a)-(b)
Balance at January 1, 2021 $ 32,757,983 $ 22,917,388 $ 9,840,595
Changes for the year
Service cost 142,556 - 142,556
Interest 1,999,639 - 1,999,639
Difference between expected and
actual experience (2,420,665) - (2,420,665)
Changes of assumptions (2,771,809) - (2,771,809)
Contributions - employer - 1,767,843 (1,767,843)
Net investment income - 2,574,713 (2,574,713)
Administrative expenses - (47,967) 47,967
Benefit payments including refund of
employee contributions (1,710,064) (1,710,064) -
Net changes (4,760,343) 2,584,525 (7,344,868)
Balance at December 31, 2021 $ 27,997,640 $ 25,501,913 $ 2,495,727
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, calculated using the discount rate of 7.35 percent,
as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (6.35 percent) or 1-percentage-point higher (8.35 percent) than the current rate:
1% Decrease Current Discount 1% Increase
(6.35%) Rate (7.35%) (8.35%)
City's net OPEB liability $ 5,123,437 $ 2,495,727 $ 271,550
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate
The following presents the net OPEB liability of the City, calculated using the healthcare cost trend rate for
pre-Medicare of 7.25 percent, decreasing to 4.5 percent and post-Medicare of 5.5 percent decreasing to 4.5
percent, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1-percentage-point lower (6.25 percent decreasing to 3.5 percent or 4.5 percent decreasing
to 3.5 percent) or 1-percentage-point higher (8.25 percent decreasing to 5.5 percent or 6.5 percent decreasing
to 5.5 percent) than the current rate:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
City's net OPEB liability $ 310,673 $ 2,495,727 $ 5,044,676
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB Plan’s fiduciary net position is not available in a separately issued
financial report. For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expenses, information about the fiduciary net
position of the OPEB Plan and additions to/deductions from the City’s fiduciary net position have been
determined on the same basis as they are reported by the City. For these purposes, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of ($3,582,893). At June 30, 2022, the
City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences in experience $ - $ 544,181
Changes in assumptions - 623,120
Net difference between projected
and actual net investment income - 1,472,132
Contributions subsequent to the
measurement date* 1,017,232 -
Total $ 1,017,232 $ 2,639,433
*The amount reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction in the net pension liability for the year ending June 30,
2023.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB—Continued
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized in OPEB expense as follows:
Year Ending
June 30, Amount
2023 $ (1,355,158)
2024 (645,978)
2025 (409,423)
2026 (228,874)
Payables to the OPEB Plan
At June 30, 2022, the City did not have a payable to the OPEB Plan.
Healthcare Savings Plan
The City also maintains a defined contribution OPEB Plan (Health Care Savings Plan or HCSP) which
provides certain health care benefits to plan member and legal dependents upon termination of employment.
The HCSP covers all City employees hired after July 1, 2012 in lieu of the traditional retiree healthcare plan.
The City participates in the Municipal Employees Retirement System (MERS) of Michigan. MERS is an
agent multiple employer, statewide public employee defined contribution OPEB Plan established by the
Michigan Legislature under Public Act 135 of 1945 and administered by a nine-member Retirement Board.
Public Act 427 of 1984, as amended, establishes and amends the benefit provisions of the participants in
MERS. MERS issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained accessing the MERS website at
www.mersofmich.com.
Depending on employee group, the Plan covers all qualified City employees hired after January 2009 to
December 2012 in lieu of the traditional retiree healthcare plan. The City is required to contribute 1 or 2
percent of a qualified employees’ annual compensation each year depending on employee group. Qualified
employees are also required to contribute 1 or 2 percent of annual compensation. Qualified employees are
also required to contribute 1 or 2 percent of annual compensation. Additionally, some employees, regardless
of hire date, may make voluntary contributions to the HCSP.
Employees are immediately vested in all contributions and earnings of those contributions.
For the year ended June 30, 2022, City and employee contributions were $530,720 and $248,630,
respectively.
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NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE O—CHANGE IN ACCOUNTING PRINCIPLE
For the year ended June 30, 2022, the City implemented the following new pronouncement: GASB Statement
No. 87, Leases.
Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, was issued by the GASB in
June 2017. The objective of this Statement is to increase the usefulness of governments’ financial statements
by requiring recognition of certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized as inflows of resources or outflows of resources based on the payment
provisions of the contract. It establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right to use the underlying asset. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to
recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and
consistency of information about governments’ leasing activities.
The restatement of beginning of the year has no impact on net position or fund balance. The change in
receivables and deferred inflows are as follows:
Balance Sheet - General Fund
Leases Receivable Deferred Inflows
Balances as of July 1, 2021, as previously stated $ - $ -
Adoption of GASB Statement 87 4,114,819 4,114,819
Balances as of July 1, 2021, as restated $ 4,114,819 $ 4,114,819
Balance Sheet - Trinity Health Arena Fund
Leases Receivable Deferred Inflows
Balances as of July 1, 2021, as previously stated $ - $ -
Adoption of GASB Statement 87 3,324,454 3,324,454
Balances as of July 1, 2021, as restated $ 3,324,454 $ 3,324,454
Statement of Net Position - Water Fund
Leases Receivable Deferred Inflows
Balances as of July 1, 2021, as previously stated $ - $ -
Adoption of GASB Statement 87 1,019,762 1,019,762
Balances as of July 1, 2021, as restated $ 1,019,762 $ 1,019,762
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2022
NOTE O—CHANGE IN ACCOUNTING PRINCIPLE—Continued
Statement of Net Position - Governmental
Activities
Leases Receivable Deferred Inflows
Balances as of July 1, 2021, as previously stated $ - $ -
Adoption of GASB Statement 87 7,439,273 7,439,273
Balances as of July 1, 2021, as restated $ 7,439,273 $ 7,439,273
Statement of Net Position - Business-type
Activities
Leases Receivable Deferred Inflows
Balances as of July 1, 2021, as previously stated $ - $ -
Adoption of GASB Statement 87 1,019,762 1,019,762
Balances as of July 1, 2021, as restated $ 1,019,762 $ 1,019,762
NOTE P—UPCOMING ACCOUNTING PRONOUNCEMENT
GASB Statement 96—Subscription-Based Information Technology Arrangements was issued by the GASB in
May 2020 and will be effective for the City’s 2023 fiscal year. This Statement provides guidance on the
accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for
government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA
results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability;
(3) provides the capitalization criteria for outlays other than subscription payments, including implementation
costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards
for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.
NOTE Q—SUBSEQUENT EVENT
On September 20, 2022, the City issued Revenue Bonds for the Water Fund of $4,843,000 for improvements
to the drinking water system.
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REQUIRED SUPPLEMENTARY INFORMATION
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE
General Fund
For the year ended June 30, 2022
(with comparative actual amounts for the year ended June 30, 2021)
2022 2021
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
REVENUES
Taxes
City income taxes $ 9,100,000 $ 9,300,000 $ 10,002,623 $ 702,623 $ 9,256,826
Property taxes 7,916,754 8,263,500 7,980,885 (282,615) 7,624,483
Industrial facilities taxes 200,000 175,000 155,353 (19,647) 211,811
Payments in lieu of taxes 662,541 662,541 656,785 (5,756) 607,538
Total taxes 17,879,295 18,401,041 18,795,646 394,605 17,700,658
Licenses and permits
Business licenses 43,000 45,000 43,875 (1,125) 45,415
Liquor licenses 50,000 65,000 65,054 54 45,808
Marihuana facilities licenses 102,500 195,000 175,500 (19,500) 189,200
Cable TV fees 370,000 370,000 369,420 (580) 374,219
Rental property registration 397,500 399,500 412,225 12,725 397,236
Burial permits 80,000 75,000 69,200 (5,800) 74,435
Building permits 800,000 775,000 755,346 (19,654) 683,883
Electrical permits 201,000 190,000 172,506 (17,494) 194,056
Plumbing permits 98,000 98,000 87,562 (10,438) 99,165
Mechanical permits 146,000 135,000 130,775 (4,225) 136,858
Vacant building fees 3,500 30,000 24,585 (5,415) 6,100
Total licenses and permits 2,291,500 2,377,500 2,306,048 (71,452) 2,246,375
Intergovernmental revenues
Federal grants 333,344 270,000 291,918 21,918 1,667,916
State
Grants 924,000 1,393,000 1,392,403 (597) 1,018,505
State shared revenue 4,399,008 4,399,008 5,087,587 688,579 4,733,888
Total intergovernmental revenues - State 5,323,008 5,792,008 6,479,990 687,982 5,752,393
Local - - 50,000 50,000 50,000
90
121
City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2022
(with comparative actual amounts for the year ended June 30, 2021)
2022 2021
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Charges for services
Tax administration fees $ 327,000 $ 386,000 $ 389,161 $ 3,161 $ 369,323
Utility administration fees 310,000 310,000 310,000 - 310,000
Reimbursement for elections - 20,000 2,464 (17,536) 75
Brownfield authority admin fee 275,000 275,000 275,000 - 175,000
Indirect cost reimbursements 1,481,624 1,440,116 1,440,116 - 1,278,590
Site plan review fee 5,800 12,000 10,900 (1,100) 8,900
Sale of cemetery lots 30,000 40,000 33,493 (6,507) 47,339
Police miscellaneous 145,200 224,200 250,874 26,674 130,990
Police impound fees 40,000 40,000 37,903 (2,097) 46,309
Landlord's alert fee 30,000 30,000 25,783 (4,217) 25,766
Fire protection - state property 119,574 101,158 101,158 - 119,574
Zoning fees 19,500 30,300 27,785 (2,515) 21,580
Muskegon Heights zoning 15,000 7,600 2,310 (5,290) 11,270
Clerk fees 2,000 9,000 32,493 23,493 1,387
Clerk fees - passport fees 40,000 44,000 45,480 1,480 5,555
Tax abatement application fees 14,400 9,500 7,280 (2,220) 4,085
Treasurer fees 42,000 34,900 76,621 41,721 57,618
False alarm fees 7,000 7,000 7,785 785 5,880
Miscellaneous cemetery income 16,000 40,000 32,615 (7,385) 34,956
Downtown social district 36,750 75,000 79,102 4,102 7,281
Fire miscellaneous 14,000 14,500 10,922 (3,578) 16,334
Sanitation stickers 404,100 437,700 451,038 13,338 435,659
Lot cleanup fees 39,500 37,500 27,808 (9,692) 34,615
Reimbursements - lot mowing and demolitions 5,000 - - - -
Special events reimbursements 50,000 15,000 22,621 7,621 (34,762)
Recreation program fees 8,000 21,500 22,192 692 14,890
Parking 500,000 720,000 837,125 117,125 543,794
Other charges for services - 10,000 6,000 (4,000) -
Total charges for services 3,977,448 4,391,974 4,566,029 174,055 3,672,008
Fines and forfeitures
Income tax - penalty and interest 200,000 200,000 189,868 (10,132) 286,818
Late fees on current taxes 20,000 20,000 17,878 (2,122) 15,574
Interest on late invoices 11,000 17,400 17,777 377 16,179
Parking fines 135,000 242,000 249,725 7,725 149,864
Court fines 120,000 90,000 74,789 (15,211) 97,979
Civil infractions 15,000 31,000 31,332 332 18,057
Total fines and forfeitures 501,000 600,400 581,369 (19,031) 584,471
Investment earnings and rental income
Interest income 100,000 75,000 254,524 179,524 98,623
Net increase (decrease) in the fair value of investments - - (918,392) (918,392) (163,278)
City right of way rental 6,800 2,400 2,400 - 2,000
Fire station lease - Central Dispatch 480,708 490,000 353,579 (136,421) 101,084
Parking rentals 68,750 68,750 55,239 (13,511) 61,935
Great Lakes Naval Memorial lease 15,000 - - - -
McGraft Park rentals 97,000 97,000 92,841 (4,159) 48,016
Other park rentals 49,000 68,500 66,459 (2,041) 50,028
Total investment earnings and rental income 817,258 801,650 (93,350) (895,000) 198,408
91
122
City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2022
(with comparative actual amounts for the year ended June 30, 2021)
2022 2021
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Other
Sale of land and assets $ - $ - $ 356 $ 356 $ -
Police sale and auction proceeds 1,000 500 4,872 4,372 385
CDBG program reimbursements 438,910 399,910 412,269 12,359 495,554
Fisherman's Landing reimbursement 17,500 28,039 28,039 - 23,706
Contributions 62,000 302,000 265,700 (36,300) 558,945
Contributions - Veteran's Park maintenance 18,500 16,900 16,889 (11) 12,904
Community Foundation for Muskegon County 35,534 10,691 10,691 - 10,144
Miscellaneous and sundry 95,000 426,069 428,301 2,232 82,616
Total other 668,444 1,184,109 1,167,117 (16,992) 1,184,254
Total revenues 31,791,297 33,818,682 34,144,767 326,085 33,056,483
EXPENDITURES
Current
Public representation services
City commission 87,223 107,877 106,980 897 96,287
City promotions and public relations 76,200 76,200 66,682 9,518 56,041
City manager 529,550 504,900 490,999 13,901 430,424
Contributions to outside agencies 405,329 577,622 567,952 9,670 541,614
City attorney 380,000 505,000 526,315 (21,315) 431,961
Total public representation services 1,478,302 1,771,599 1,758,928 12,671 1,556,327
Administrative services
City clerk 688,230 683,500 709,596 (26,096) 569,368
Civil service 241,545 255,965 236,245 19,720 214,035
Total administrative services 929,775 939,465 945,841 (6,376) 783,403
Financial services
Finance administration 643,850 642,300 642,543 (243) 643,392
Assessing 415,948 416,500 415,917 583 348,753
Arena administration - - 8,196 (8,196) 10,797
Income tax administration 414,753 409,000 403,538 5,462 400,206
Information systems 550,571 675,500 651,932 23,568 524,565
City treasurer 647,227 625,500 637,622 (12,122) 615,675
Pension administration 2,908,506 2,908,506 2,908,506 - 2,266,951
Total financial services 5,580,855 5,677,306 5,668,254 9,052 4,810,339
Public safety
Police department 10,234,869 10,738,500 10,758,657 (20,157) 9,862,730
Fire department 3,164,026 3,021,811 3,034,373 (12,562) 2,908,093
Fire safety inspections 2,007,745 2,022,000 1,727,952 294,048 1,870,745
Total public safety 15,406,640 15,782,311 15,520,982 261,329 14,641,568
92
123
City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2022
(with comparative actual amounts for the year ended June 30, 2021)
2022 2021
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Public works
Street lighting $ 350,000 $ 350,000 $ 356,973 $ (6,973) $ 382,729
Community event support 92,100 121,000 130,198 (9,198) 100,206
General sanitation 2,037,262 2,345,700 2,344,186 1,514 2,285,497
Storm water management 14,000 30,000 22,233 7,767 4,000
City hall maintenance 325,711 350,000 365,188 (15,188) 310,492
Cemeteries maintenance 473,402 481,382 509,515 (28,133) 360,056
Total public works 3,292,475 3,678,082 3,728,293 (50,211) 3,442,980
Community and economic development
Planning, zoning and economic development 556,100 565,500 542,191 23,309 488,691
Environmental services - 1,500 1,502 (2) 177
Edison Landing subsidy 200,000 200,000 200,000 - 350,000
Total community and economic development 756,100 767,000 743,693 23,307 838,868
Culture and recreation
Parks maintenance 1,899,516 2,379,089 2,482,189 (103,100) 1,665,740
McGraft Park maintenance 123,075 148,175 142,840 5,335 131,222
General and inner city recreation programs - 5,500 5,482 18 305
Forestry 80,000 82,500 81,501 999 56,567
Parking operations 45,600 51,330 100,522 (49,192) 89,542
Farmers market and flea market - - 41 (41) 99
Social district 36,750 47,000 26,905 20,095 5,639
Total culture and recreation 2,184,941 2,713,594 2,839,480 (125,886) 1,949,114
Other governmental functions
Insurance premiums 389,881 464,000 450,719 13,281 351,344
Other 50,000 50,000 34,305 15,695 28,888
Total other governmental functions 439,881 514,000 485,024 28,976 380,232
Debt service
Principal 710,000 907,462 907,462 - 2,285,300
Interest and fees 372,000 390,593 390,771 (178) 250,991
Bond issuance costs - 1,000 1,000 - 140,750
Total debt service 1,082,000 1,299,055 1,299,233 (178) 2,677,041
Capital outlay 1,829,588 4,552,706 4,662,678 (109,972) 4,358,050
Total expenditures 32,980,557 37,695,118 37,652,406 42,712 35,437,922
Excess of revenues over (under) expenditures (1,189,260) (3,876,436) (3,507,639) 368,797 (2,381,439)
93
124
City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2022
(with comparative actual amounts for the year ended June 30, 2021)
2022 2021
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
OTHER FINANCING SOURCES (USES)
Long-term debt issued $ 1,085,275 $ 289,176 $ 1,370,873 $ 1,081,697 $ 4,325,000
Refunding bonds issued - - - - 2,055,000
Premium on bonds issued - - - - 772,424
Transfers in 1,080,000 6,828,548 5,798,549 (1,029,999) -
Transfers out (915,000) (3,130,000) (3,998,250) (868,250) (1,475,000)
Total other financing sources (uses) 1,250,275 3,987,724 3,171,172 (816,552) 5,677,424
Net change in fund balance $ 61,015 $ 111,288 (336,467) $ (447,755) 3,295,985
Fund balance at beginning of year 11,197,840 7,901,855
Fund balance at end of year $ 10,861,373 $ 11,197,840
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
94
125
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Major Street and Trunkline Fund
For the year ended June 30, 2022
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues
Federal $ 1,109,848 $ 566,848 $ - $ (566,848)
State 4,881,000 5,111,000 4,809,424 (301,576)
Investment earnings 5,000 10,000 11,627 1,627
Other - 360,000 323,508 (36,492)
Total revenues 5,995,848 6,047,848 5,144,559 (903,289)
EXPENDITURES
Current
Highways, streets and bridges 5,892,486 5,040,138 3,798,863 1,241,275
Debt service
Principal - 230,000 230,000 -
Interest and fees - 3,503 3,503 -
Total expenditures 5,892,486 5,273,641 4,032,366 1,241,275
Net change in fund balance $ 103,362 $ 774,207 1,112,193 $ 337,986
Fund balance at beginning of year 2,408,053
Fund balance at end of year $ 3,520,246
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
95
126
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Trinity Health Arena Fund
For the year ended June 30, 2022
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues
Federal $ - $ 625,498 $ 625,498 $ -
Charges for services 1,075,267 1,961,518 2,683,567 722,049
Investment earnings - - 79,782 79,782
Other 9,500 662,202 14,904 (647,298)
Total revenues 1,084,767 3,249,218 3,403,751 154,533
EXPENDITURES
Current
Culture and recreation 1,723,805 2,160,000 2,274,570 (114,570)
Capital outlay 125,000 2,137,760 1,987,141 150,619
Total expenditures 1,848,805 4,297,760 4,261,711 36,049
Excess of revenues over (under) expenditures (764,038) (1,048,542) (857,960) 190,582
OTHER FINANCING SOURCES
Transfers in 1,029,203 779,203 865,000 85,797
Net change in fund balance $ 265,165 $ (269,339) 7,040 $ 276,379
Fund balance at beginning of year 54,928
Fund balance at end of year $ 61,968
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
96
127
City of Muskegon
Required Supplemental Information
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years (Amounts were determined as of December 31 of each fiscal year)
2021 2020 2019 2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY
Service cost $ 529,832 $ 615,293 $ 732,228 $ 806,565 $ 1,018,541 $ 1,130,408 $ 1,194,909 $ 1,190,507
Interest 9,237,064 8,787,617 8,718,797 8,345,836 8,429,233 8,345,661 8,034,035 7,817,503
Differences between expected and actual experience 256,636 2,829,299 1,830,804 3,642,392 1,326,122 (1,697,797) (647,017) -
Changes in assumptions 4,396,829 2,974,495 4,134,788 - - - 4,779,382 -
Benefit payments, including refunds of employee contributions (9,285,923) (9,214,462) (8,218,689) (7,512,608) (6,937,544) (6,417,825) (6,363,249) (6,407,932)
Other changes - - - (229,967) (4,485,289) - - -
Net change in total pension liability 5,134,438 5,992,242 7,197,928 5,052,218 (648,937) 1,360,447 6,998,060 2,600,078
Total pension liability at beginning of year 125,918,365 119,926,123 112,728,195 107,675,977 108,324,914 106,964,467 99,966,407 97,366,329
Total pension liability at end of year (a) $ 131,052,803 $ 125,918,365 $ 119,926,123 $ 112,728,195 $ 107,675,977 $ 108,324,914 $ 106,964,467 $ 99,966,407
PLAN FIDUCIARY NET POSITION
Contributions-employer $ 3,313,056 $ 2,468,311 $ 2,712,204 $ 2,671,175 $ 1,801,016 $ 1,996,512 $ 1,420,218 $ 1,166,652
Contributions-employee 304,680 374,806 491,814 848,562 687,391 563,898 566,045 564,409
Net investment income 12,779,029 10,575,596 11,059,388 (3,452,538) 10,964,115 8,890,951 (1,237,895) 5,282,031
Benefit payments, including refunds or employee contributions (9,285,923) (9,214,462) (8,218,689) (7,512,608) (6,937,544) (6,417,825) (6,363,249) (6,407,932)
Administrative expense (146,581) (173,766) (190,108) (173,509) (173,921) (175,718) (183,599) (193,139)
- - -
97
Net change in plan fiduciary net position 6,964,261 4,030,485 5,854,609 (7,618,918) 6,341,057 4,857,818 (5,798,480) 412,021
Plan fiduciary net position at beginning of year 93,025,193 88,994,708 83,140,099 90,759,017 84,417,960 79,560,142 85,358,622 84,946,601
Plan fiduciary net position at end of year (b) $ 99,989,454 $ 93,025,193 $ 88,994,708 $ 83,140,099 $ 90,759,017 $ 84,417,960 $ 79,560,142 $ 85,358,622
City's net pension liability at end of year (a)-(b) $ 31,063,349 $ 32,893,172 $ 30,931,415 $ 29,588,096 $ 16,916,960 $ 23,906,954 $ 27,404,325 $ 14,607,785
Plan fiduciary net position as a percentage of the total pension liability 76.30% 73.88% 74.21% 73.75% 84.29% 77.93% 74.38% 85.39%
Covered payroll $ 4,608,816 $ 5,408,268 $ 6,110,950 $ 6,565,169 $ 7,645,789 $ 8,460,078 $ 9,108,948 $ 9,171,511
City's net pension liability as a percentage of covered payroll 674.00% 608.20% 506.16% 450.68% 221.26% 282.59% 300.85% 159.27%
Notes to Schedule
Additional actuarial data is not available and will be provided in subsequent years.
128
City of Muskegon
Required Supplemental Information
PENSION SYSTEM SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years (Amounts were determined as of June 30 of each fiscal year)
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contribution $ 3,724,080 $ 2,902,032 $ 1,855,248 $ 1,902,696 $ 1,798,140 $ 1,897,158 $ 1,546,440 $ 1,293,996 $ 1,043,040 $ 1,035,772
Contributions in relation to the actuarially
determined contribution 3,724,080 2,902,032 2,777,641 2,218,663 1,964,214 2,276,200 1,753,272 1,293,996 1,543,040 1,035,772
Contribution deficiency (excess) $ - $ - $ (922,393) $ (315,967) $ (166,074) $ (379,042) $ (206,832) $ - $ (500,000) $ -
Covered payroll $ 4,608,816 $ 5,408,268 $ 6,110,950 $ 6,561,169 $ 7,645,789 $ 8,460,078 $ 9,108,948 $ 9,171,511 $ 9,198,938 $ 10,185,425
Contributions as percentage of covered
payroll 80.8% 53.7% 45.5% 33.8% 25.7% 26.9% 19.2% 14.1% 16.8% 10.2%
Notes to Schedule
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, Closed
98
Remaining amortization period 17 years
Asset valuation method 5-year smoothed market
Inflation 2.5 percent
Salary increases 3.0 percent in the long-term
Investment rate of return 7.35 percent, net of administrative and investment expenses
Retirement age Varies depending on plan adoption
Mortality Based on a version of Pub-2010 and fully generational MP-2019
129
City of Muskegon
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTHCARE SYSTEM SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years (Amounts were determined as of December 31 of each fiscal year)
2021 2020 2019 2018 2017
TOTAL OPEB LIABILITY
Service cost $ 142,556 $ 156,214 $ 165,306 $ 178,243 $ 165,423
Interest 1,999,639 2,058,432 2,191,233 2,035,720 1,954,979
Differences between expected and actual experience (2,420,665) (325,146) (2,119,868) (992,432) -
Changes of assumptions (2,771,809) (1,152,266) 6,288,823 2,349,210 -
Benefit payments, including refunds of employee contributions (1,710,064) (1,621,453) (1,983,928) (1,118,442) (1,064,376)
Net change in total OPEB liability (4,760,343) (884,219) 4,541,566 2,452,299 1,056,026
Total OPEB liability at beginning of year 32,757,983 33,642,202 29,100,636 26,648,337 25,592,311
Total OPEB liability at end of year (a) $ 27,997,640 $ 32,757,983 $ 33,642,202 $ 29,100,636 $ 26,648,337
PLAN FIDUCIARY NET POSITION
Contributions-employer $ 1,767,843 $ 1,154,926 $ 1,001,447 $ 671,363 $ 736,039
Net investment income 2,574,713 2,210,729 2,660,470 (699,603) 2,110,019
Benefit payments, including refunds or employee contributions (1,710,064) (1,621,453) (1,983,928) (1,118,442) (1,064,376)
99
Administrative expense (47,967) (42,375) (41,397) (53,927) (52,313)
Net change in plan fiduciary net position 2,584,525 1,701,827 1,636,592 (1,200,609) 1,729,369
Plan fiduciary net position at beginning of year 22,917,388 21,215,561 19,578,969 20,779,578 19,050,209
Plan fiduciary net position at end of year (b) $ 25,501,913 $ 22,917,388 $ 21,215,561 $ 19,578,969 $ 20,779,578
City's net OPEB liability at end of year (a)-(b) $ 2,495,727 $ 9,840,595 $ 12,426,641 $ 9,521,667 $ 5,868,759
Plan fiduciary net position as a percentage of the total OPEB liability 91.09% 69.96% 63.06% 67.28% 77.98%
Covered payroll $ 6,978,841 $ 7,848,543 $ 8,952,683 Not Available $ 8,095,840
City's net OPEB liability as a percentage of covered payroll 35.76% 125.38% 138.80% Not Available 72.49%
Notes to Schedule
Additional actuarial data is not available and will be provided in subsequent years.
130
City of Muskegon
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTHCARE SYSTEM SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years (Amounts were determined as of June 30 of each fiscal year)
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contribution $ 1,344,010 $ 2,289,405 $ 2,115,188 $ 1,470,562 $ 956,532 $ 606,506 $ 639,428 $ 659,451 $ 696,634 $ 728,863
Contributions in relation to the actuarially
determined contribution 650,383 1,206,464 1,233,505 1,260,887 687,642 606,506 639,428 659,451 696,634 728,863
Contribution deficiency (excess) $ 693,627 $ 1,082,941 $ 881,683 $ 209,675 $ 268,890 $ - $ - $ - $ - $ -
Covered payroll $ 6,978,841 $ 7,848,543 $ 8,952,683 Not Available $ 8,095,840 $ 10,830,000 $ 10,830,000 $ 10,005,000 $ 10,005,000 $ 12,365,000
Contributions as percentage of covered
payroll 9.3% 15.4% 13.8% Not Available 8.5% 5.6% 5.9% 6.6% 7.0% 5.9%
Notes to Schedule
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31, 2021.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal (level percentage of compensation)
Amortization method Level percentage of payroll, Closed
100
Remaining amortization period 7 years
Asset valuation method Equal to market value of assets
Inflation 2.5 percent
Salary increases 0.0 percent
Investment rate of return 7.35 percent (including inflation), net of administrative and investment expenses
Retirement age 55 - 60 years of age
Mortality Mortality rates for police and fire were as set forth in the Public Safety 2010 Employee and Healthy Retiree, headcount weighted, MP-2021 improvement scale.
Mortality rates for others were as set forth in the Public General 2010 Employee and Healthy Retiree, headcount weighted, MP-2021 improvement scale.
131
City of Muskegon
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTHCARE SYSTEM SCHEDULE OF INVESTMENT RETURNS
Last Ten Fiscal Years (Amounts were determined as of December 31 of each fiscal year)
2021 2020 2019 2018 2017
Annual money-weighted rate of return, net of investment expense 11.23% 10.55% 13.95% -3.41% 11.19%
Notes to Schedule
Additional data is not available and will be provided in subsequent years
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102
133
OTHER SUPPLEMENTAL INFORMATION
103
134
DESCRIPTION OF
OTHER GOVERNMENTAL FUNDS
Special Revenue Funds
The special revenue funds are used to account for the proceeds of special revenue sources that are legally
restricted to expenditures for specific purposes.
Local Street – to account for gas and weight allocations to the City by the Michigan Department of Transportation
for construction and maintenance of local streets within the City.
Farmers Market and Kitchen 242 – to account for revenues received for the City’s Farmers Market and Kitchen
242.
Criminal Forfeitures – to account for receipts generated through the sale of assets seized through criminal court
proceedings.
Downtown BID – to account for the collection of special assessment revenue in the downtown to be used for
improvement and maintenance of downtown public infrastructure.
Lakeshore BID – to account for the collection of special assessment revenue in the lakeshore area to be used for
improvement and maintenance of lakeshore infrastructure.
Tree Replacement – to account for contributions and other revenues earmarked for tree replacement throughout
the City.
Capital Projects Funds
Capital projects funds are used to account for financial resources to be used for the acquisition or construction of
major capital assets other than those financed by proprietary funds and trust funds.
Public Improvement Fund – to account for grants, private contributions, sale of property, and other resources used
to finance various capital projects.
Michcon Remediation – to account for reimbursements received from Michcon Gas Company for environmental
remediation of their former downtown site.
EDC Revolving Loan – to account for funds received upon repayment of Urban Development Action Grant loans
and subsequently reloaned to small business enterprises.
Community Development Block Grant – to account for categorical grants received from the U. S. Department of
Housing and Urban Development for the construction of major city public improvements and the rehabilitation of
residential housing and other qualifying expenditures.
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135
DESCRIPTION OF
OTHER GOVERNMENTAL FUNDS—CONTINUED
Capital Projects Funds—Continued
HOME Rehabilitation – to account for grant revenues received from the U. S. Department of Housing and Urban
Development for the purpose of providing housing assistance to low and moderate income households in the City.
Lead Abatement – to account for grant revenues received from the U. S. Department of Health and Human
Services for the purpose of abatement of lead from homes in the City.
Senior Millage – to account for proceeds from the County millage for senior services that were distributed to the
City for specific projects.
Convention Center Construction – to account for proceeds from debt issuance for the construction of a convention
center in downtown Muskegon.
Healthy Homes – to account for grant revenues received from the U. S. Department of Housing and Urban
Development for the purpose of addressing multiple residential health and safety hazards.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government’s programs.
Cemetery Perpetual Care – to account for charges for services collected and investment income earned and to
account for transfers to the General Fund to partially cover cemetery care expenses.
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City of Muskegon
COMBINING BALANCE SHEET
Other Governmental Funds
June 30, 2022
Other Other Permanent
Total Other Special Capital Fund -
Governmental Revenue Projects Cemetery
Funds Funds Funds Perpetual Care
ASSETS
Cash and investments $ 3,001,131 $ 1,040,460 $ 1,285,084 $ 675,587
Assets managed by others 1,356,585 - 29,011 1,327,574
Receivables
Accounts and loans (net of allowance for uncollectibles) 989,779 13,085 973,815 2,879
Due from other governmental units 505,219 196,197 309,022 -
Advances to component units 148,994 - - 148,994
Prepaid items 7,905 7,905 - -
Total assets $ 6,009,613 $ 1,257,647 $ 2,596,932 $ 2,155,034
LIABILITIES
Accounts payable $ 303,168 $ 37,286 $ 265,882 $ -
Accrued liabilities 41,424 22,703 18,721 -
Due to other governmental units 788 788 - -
Due to other funds 33,684 - 33,684 -
Short-term draw note 84,297 - 84,297 -
Unearned revenues - unused Farmers Market tokens 26,331 26,331 - -
Total liabilities 489,692 87,108 402,584 -
FUND BALANCES
Nonspendable
Prepaid items 7,905 7,905 - -
Perpetual care 1,677,702 - - 1,677,702
Restricted
Highways, streets and bridges 789,134 789,134 - -
Law enforcement 23,161 23,161 - -
Business improvement districts 176,733 176,733 - -
Perpetual care 477,332 - - 477,332
Other purposes 173,606 173,606 - -
Assigned for capital projects and public improvements 2,194,348 - 2,194,348 -
Total fund balances 5,519,921 1,170,539 2,194,348 2,155,034
Total liabilities and fund balances $ 6,009,613 $ 1,257,647 $ 2,596,932 $ 2,155,034
106
137
City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
Other Governmental Funds
For the year ended June 30, 2022
Other Other Permanent
Total Other Special Capital Fund -
Governmental Revenue Projects Cemetery
Funds Funds Funds Perpetual Care
REVENUES
Intergovernmental revenues
Federal $ 2,952,413 $ - $ 2,952,413 $ -
State 2,538,375 1,461,786 1,076,589 -
Local 261,057 - 261,057 -
Charges for services 495,403 401,906 58,204 35,293
Fines and forfeitures 1,264 1,264 - -
Investment earnings 36,959 4,445 23,356 9,158
Income from assets managed by others (134,215) - (5,173) (129,042)
Other 1,104,169 275,176 828,993 -
Total revenues 7,255,425 2,144,577 5,195,439 (84,591)
EXPENDITURES
Current
Public safety 443 443 - -
Public works 156,277 156,277 - -
Highways, streets and bridges 1,998,785 1,998,785 - -
Culture and recreation 484,929 484,929 - -
Debt service
Principal 205,000 - 205,000 -
Interest and fees 616,730 - 616,730 -
Capital outlay 4,835,674 - 4,835,674 -
Total expenditures 8,297,838 2,640,434 5,657,404 -
Excess of revenues over (under) expenditures (1,042,413) (495,857) (461,965) (84,591)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 1,204,675 - 1,204,675 -
Transfers in 3,128,500 262,500 2,866,000 -
Transfers out (401,000) - (401,000) -
Total other financing sources (uses) 3,932,175 262,500 3,669,675 -
Net change in fund balances (deficits) 2,889,762 (233,357) 3,207,710 (84,591)
Fund balances (deficits) at beginning of year 2,630,159 1,403,896 (1,013,362) 2,239,625
Fund balances at end of year $ 5,519,921 $ 1,170,539 $ 2,194,348 $ 2,155,034
107
138
City of Muskegon
COMBINING BALANCE SHEET
Other Special Revenue Funds
June 30, 2022
Total Other Farmers
Special Revenue Local Market and Criminal Downtown Lakeshore Tree
Funds Street Kitchen 242 Forfeitures BID BID Replacement
ASSETS
Cash and investments $ 1,040,460 $ 613,349 $ 222,106 $ 23,161 $ 135,442 $ 45,791 $ 611
Receivables
Accounts 13,085 7,550 5,535 - - - -
Due from other governmental units 196,197 196,197 - - - - -
Prepaid items 7,905 7,905 - - - - -
Total assets $ 1,257,647 $ 825,001 $ 227,641 $ 23,161 $ 135,442 $ 45,791 $ 611
LIABILITIES
Accounts payable $ 37,286 $ 8,503 $ 24,283 $ - $ 4,500 $ - $ -
Accrued liabilities 22,703 19,459 3,244 - - - -
Due to other governmental units 788 - 788 - - - -
108
Unearned revenues - unused Farmers Market tokens 26,331 - 26,331 - - - -
Total liabilities 87,108 27,962 54,646 - 4,500 - -
FUND BALANCES
Nonspendable - prepaid items 7,905 7,905 - - - - -
Restricted
Highways, streets and bridges 789,134 789,134 - - - - -
Law enforcement 23,161 - - 23,161 - - -
Business improvement districts 176,733 - - - 130,942 45,791 -
Other purposes 173,606 - 172,995 - - - 611
Total fund balances 1,170,539 797,039 172,995 23,161 130,942 45,791 611
Total liabilities and fund balances $ 1,257,647 $ 825,001 $ 227,641 $ 23,161 $ 135,442 $ 45,791 $ 611
139
City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Other Special Revenue Funds
For the year ended June 30, 2022
Total Other Farmers
Special Revenue Local Market and Criminal Downtown Lakeshore Tree
Funds Street Kitchen 242 Forfeitures BID BID Replacement
REVENUES
Intergovernmental revenues
State $ 1,461,786 $ 1,461,786 $ - $ - $ - $ - $ -
Charges for services 401,906 2,800 399,106 - - - -
Fines and forfeitures 1,264 - - 1,264 - - -
Investment earnings 4,445 2,960 614 111 641 82 37
Other 275,176 39,642 61,778 - 117,193 43,126 13,437
Total revenues 2,144,577 1,507,188 461,498 1,375 117,834 43,208 13,474
EXPENDITURES
Current
Public safety 443 - - 443 - - -
109
Public works 156,277 - - - 119,880 36,397 -
Highways, streets and bridges 1,998,785 1,998,785 - - - - -
Culture and recreation 484,929 - 455,886 - - - 29,043
Total expenditures 2,640,434 1,998,785 455,886 443 119,880 36,397 29,043
Excess of revenues over (under) expenditures (495,857) (491,597) 5,612 932 (2,046) 6,811 (15,569)
OTHER FINANCING SOURCES
Transfers in 262,500 100,000 125,000 - - 35,000 2,500
Net change in fund balances (233,357) (391,597) 130,612 932 (2,046) 41,811 (13,069)
Fund balances at beginning of year 1,403,896 1,188,636 42,383 22,229 132,988 3,980 13,680
Fund balances at end of year $ 1,170,539 $ 797,039 $ 172,995 $ 23,161 $ 130,942 $ 45,791 $ 611
140
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Other Special Revenue Funds
For the year ended June 30, 2022
Local Street Farmers Market and Kitchen 242
Final Variance with Final Variance with
Budget Actual Final Budget Budget Actual Final Budget
REVENUES
Intergovernmental revenues
State $ 1,460,000 $ 1,461,786 $ 1,786 $ - $ - $ -
Charges for services 5,000 2,800 (2,200) 363,225 399,106 35,881
Investment earnings 3,500 2,960 (540) 500 614 114
Other 40,000 39,642 (358) 36,000 61,778 25,778
Total revenues 1,508,500 1,507,188 (1,312) 399,725 461,498 61,773
EXPENDITURES
Current
110
Highways, streets and bridges 2,117,950 1,998,785 119,165 - - -
Culture and recreation - - - 429,200 455,886 (26,686)
Total expenditures 2,117,950 1,998,785 119,165 429,200 455,886 (26,686)
Excess of revenues over (under) expenditures (609,450) (491,597) 117,853 (29,475) 5,612 35,087
OTHER FINANCING SOURCES
Transfers in 100,000 100,000 - 40,000 125,000 85,000
Net change in fund balances $ (509,450) (391,597) $ 117,853 $ 10,525 130,612 $ 120,087
Fund balances at beginning of year 1,188,636 42,383
Fund balances at end of year $ 797,039 $ 172,995
141
City of Muskegon
BUDGETARY COMPARISON SCHEDULE─CONTINUED
Other Special Revenue Funds
For the year ended June 30, 2022
Criminal Forfeitures Downtown BID
Final Variance With Final Variance With
Budget Actual Final Budget Budget Actual Final Budget
REVENUES
Fines and forfeitures $ - $ 1,264 $ 1,264 $ - $ - $ -
Investment earnings 100 111 11 - 641 641
Other - - - 114,888 117,193 2,305
Total revenues 100 1,375 1,275 114,888 117,834 2,946
EXPENDITURES
Current
Public safety 500 443 57 - - -
Public works - - - 114,888 119,880 (4,992)
111
Total expenditures 500 443 57 114,888 119,880 (4,992)
Net change in fund balances $ (400) 932 $ 1,332 $ - (2,046) $ (2,046)
Fund balances at beginning of year 22,229 132,988
Fund balances at end of year $ 23,161 $ 130,942
142
City of Muskegon
BUDGETARY COMPARISON SCHEDULE─CONTINUED
Other Special Revenue Funds
For the year ended June 30, 2022
Lakeshore BID Tree Replacement
Final Variance with Final Variance with
Budget Actual Final Budget Budget Actual Final Budget
REVENUES
Investment earnings $ - $ 82 $ 82 $ - $ 37 $ 37
Other 26,944 43,126 16,182 13,500 13,437 (63)
Total revenues 26,944 43,208 16,264 13,500 13,474 (26)
EXPENDITURES
Current
Public works 41,944 36,397 5,547 - - -
Culture and recreation - - - 30,000 29,043 957
- -
Total expenditures 41,944 36,397 5,547 30,000 29,043 957
112
Excess of revenues over (under) expenditures (15,000) 6,811 21,811 (16,500) (15,569) 931
OTHER FINANCING SOURCES
Transfers in - 35,000 35,000 5,000 2,500 (2,500)
Net change in fund balances $ (15,000) 41,811 $ 56,811 $ (11,500) (13,069) $ (1,569)
Fund balances at beginning of year 3,980 13,680
Fund balances at end of year $ 45,791 $ 611
143
City of Muskegon
COMBINING BALANCE SHEET
Other Capital Projects Funds
June 30, 2022
Total Other EDC Community Convention
Capital Projects Public Michcon Revolving Development HOME Lead Senior Center Healthy
Funds Improvement Remediation Loan Block Grant Rehabilitation Abatement Millage Construction Homes
ASSETS
Cash and investments $ 1,285,084 $ 317,741 $ 228,686 $ 506,837 $ 21,197 $ 25,768 $ - $ 31,377 $ 153,478 $ -
Assets managed by others 29,011 29,011 - - - - - - - -
Receivables
Accounts and loans (net of
allowance for uncollectibles) 973,815 299,916 - 661,160 12,739 - - - - -
Due from other governmental units 309,022 - - - 174,570 57,713 74,724 - - 2,015
Total assets $ 2,596,932 $ 646,668 $ 228,686 $ 1,167,997 $ 208,506 $ 83,481 $ 74,724 $ 31,377 $ 153,478 $ 2,015
LIABILITIES
Accounts payable $ 265,882 $ 10,976 $ - $ - $ 77,606 $ 80,854 $ 41,801 $ 13,003 $ 41,642 $ -
Accrued liabilities 18,721 - - - 16,323 1,144 505 - - 749
Due to other funds 33,684 - - - - - 32,418 - - 1,266
Short-term draw note 84,297 84,297 - - - - - - - -
Total liabilities 402,584 95,273 - - 93,929 81,998 74,724 13,003 41,642 2,015
113
FUND BALANCES
Assigned for capital projects
and public improvements 2,194,348 551,395 228,686 1,167,997 114,577 1,483 - 18,374 111,836 -
Total liabilities and fund balances $ 2,596,932 $ 646,668 $ 228,686 $ 1,167,997 $ 208,506 $ 83,481 $ 74,724 $ 31,377 $ 153,478 $ 2,015
144
City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
Other Capital Projects Funds
For the year ended June 30, 2022
Total Other EDC Community Convention
Capital Projects Public Michcon Revolving Development HOME Lead Senior Center Healthy
Funds Improvement Remediation Loan Block Grant Rehabilitation Abatement Millage Construction Homes
REVENUES
Intergovernmental revenues
Federal $ 2,952,413 $ - $ - $ - $ 1,748,418 $ 580,355 $ 621,625 $ - $ - $ 2,015
State 1,076,589 - - - - - 21,804 - 1,054,785 -
Local 261,057 261,057 - - - - - - - -
Charges for services 58,204 52,204 - 6,000 - - - - - -
Investment earnings 23,356 - 1,141 21,879 - - - 298 38 -
Income from assets managed by others (5,173) (5,173) - - - - - - - -
Other 828,993 471,709 - 107,916 5,758 6 3 243,601 - -
Total revenues 5,195,439 779,797 1,141 135,795 1,754,176 580,361 643,432 243,899 1,054,823 2,015
EXPENDITURES
Debt service
Principal 205,000 - - - - - - - 205,000 -
Interest and fees 616,730 4,519 - - - - - - 612,211 -
Capital outlay 4,835,674 647,099 - 410,900 1,707,058 426,476 643,432 265,356 733,338 2,015
Total expenditures 5,657,404 651,618 - 410,900 1,707,058 426,476 643,432 265,356 1,550,549 2,015
114
Excess of revenues over (under) expenditures (461,965) 128,179 1,141 (275,105) 47,118 153,885 - (21,457) (495,726) -
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 1,204,675 1,084,182 - - 67,459 53,034 - - - -
Transfers in 2,866,000 366,000 - - - - - - 2,500,000 -
Transfers out (401,000) - - - - (316,000) - (85,000) - -
Total other financing sources (uses) 3,669,675 1,450,182 - - 67,459 (262,966) - (85,000) 2,500,000 -
Net change in fund balances (deficits) 3,207,710 1,578,361 1,141 (275,105) 114,577 (109,081) - (106,457) 2,004,274 -
Fund balances (deficits) at beginning of year (1,013,362) (1,026,966) 227,545 1,443,102 - 110,564 - 124,831 (1,892,438) -
Fund balances at end of year $ 2,194,348 $ 551,395 $ 228,686 $ 1,167,997 $ 114,577 $ 1,483 $ - $ 18,374 $ 111,836 $ -
145
DESCRIPTION OF
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one department to
other departments of a governmental unit or to other governments on a cost-reimbursement basis.
A list and description of internal service funds maintained by the City follows:
Engineering Services – to account for salary, benefit and other costs related to the provision of internal
engineering services for City projects; to account for charges to the user funds and projects to cover those
expenses.
Equipment – to account for the purchase, operation, maintenance and depreciation of all City-owned vehicles and
equipment; to account for charges to the user funds and departments to cover those expenses.
General Insurance – to account for the payment of claims and benefits, excess liability premiums and operating
expenses; to account for charges to other funds and departments to cover the expenses.
Public Service Building – to account for the operation, maintenance and depreciation of the City's Public Service
Building; to account for charges to the user funds and departments to cover these expenses.
115
146
City of Muskegon
COMBINING STATEMENT OF NET POSITION
Internal Service Funds
June 30, 2022
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
ASSETS
Current assets
Cash and investments $ 3,559,579 $ 67,853 $ 1,534,275 $ 1,012,141 $ 945,310
Accounts receivable 333,192 24,619 9,357 299,216 -
Inventories 38,867 - 38,867 - -
Prepaid items 229,096 2,906 62,719 158,586 4,885
Total current assets 4,160,734 95,378 1,645,218 1,469,943 950,195
Noncurrent assets
Advances to component units 297,986 - 148,993 148,993 -
Capital assets
Land 65,000 - - - 65,000
Land improvements 301,715 - - - 301,715
Buildings and improvements 1,668,215 - - - 1,668,215
Machinery and equipment 10,313,517 51,346 10,167,807 - 94,364
Less accumulated depreciation (9,524,983) (33,645) (7,676,636) - (1,814,702)
Net capital assets 2,823,464 17,701 2,491,171 - 314,592
Total noncurrent assets 3,121,450 17,701 2,640,164 148,993 314,592
Total assets 7,282,184 113,079 4,285,382 1,618,936 1,264,787
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 74,482 - 27,931 - 46,551
Related to other postemployment benefits 40,689 - 15,258 - 25,431
Total deferred outflows of resources 115,171 - 43,189 - 71,982
Total assets and deferred outflows of resources 7,397,355 113,079 4,328,571 1,618,936 1,336,769
LIABILITIES
Current liabilities
Accounts payable 779,382 4,808 210,469 520,956 43,149
Accrued liabilities 60,116 14,296 16,094 1,825 27,901
Bonds and other obligations, due within one year 39,200 8,800 14,100 900 15,400
Total current liabilities 878,698 27,904 240,663 523,681 86,450
Noncurrent liabilities
Bonds and other obligations, less amounts due within one year 156,651 34,990 56,497 3,722 61,442
Net pension liability 1,242,534 - 465,950 - 776,584
Net other postemployment benefits liability 99,829 - 37,436 - 62,393
Total noncurrent liabilities 1,499,014 34,990 559,883 3,722 900,419
Total liabilities 2,377,712 62,894 800,546 527,403 986,869
DEFERRED INFLOWS OF RESOURCES
Related to pension 278,007 - 104,253 - 173,754
Related to other postemployment benefits 105,577 - 39,591 - 65,986
Total deferred inflows of resources 383,584 - 143,844 - 239,740
Total liabilities and deferred inflows of resources 2,761,296 62,894 944,390 527,403 1,226,609
NET POSITION
Net investment in capital assets 2,823,464 17,701 2,491,171 - 314,592
Unrestricted 1,812,595 32,484 893,010 1,091,533 (204,432)
Total net position $ 4,636,059 $ 50,185 $ 3,384,181 $ 1,091,533 $ 110,160
116
147
City of Muskegon
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET POSITION
Internal Service Funds
For the year ended June 30, 2022
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
OPERATING REVENUES
Charges for services $ 10,433,668 $ 575,183 $ 3,328,303 $ 5,208,979 $ 1,321,203
Other 158,582 69,709 81,105 7,768 -
Total operating revenues 10,592,250 644,892 3,409,408 5,216,747 1,321,203
OPERATING EXPENSES
Administration 958,063 111,814 198,505 46,960 600,784
Insurance premiums and claims 5,386,649 - - 5,386,649 -
Other operations 3,701,160 516,787 2,189,569 49,469 945,335
Depreciation 499,466 2,500 469,305 - 27,661
Total operating expenses 10,545,338 631,101 2,857,379 5,483,078 1,573,780
Operating income (loss) 46,912 13,791 552,029 (266,331) (252,577)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 25,649 336 12,892 8,751 3,670
Gain (loss) on sale of capital assets 38,349 - 38,349 - -
Total nonoperating revenues (expenses) 63,998 336 51,241 8,751 3,670
Income (loss) before transfers 110,910 14,127 603,270 (257,580) (248,907)
TRANSFERS
Transfers in 400,000 - - - 400,000
Change in net position 510,910 14,127 603,270 (257,580) 151,093
Net position at beginning of year 4,125,149 36,058 2,780,911 1,349,113 (40,933)
Net position at end of year $ 4,636,059 $ 50,185 $ 3,384,181 $ 1,091,533 $ 110,160
117
148
City of Muskegon
COMBINING STATEMENT OF CASH FLOWS
Internal Service Funds
For the year ended June 30, 2022
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 169,736 $ 48,212 $ 121,524 $ - $ -
Receipts from interfund services provided 10,433,668 575,183 3,328,303 5,208,979 1,321,203
Other receipts 1,266,428 - - 1,266,428 -
Payments to suppliers (6,865,909) (150,664) (1,169,326) (5,081,357) (464,562)
Payments to employees (1,954,355) (370,696) (502,520) (52,826) (1,028,313)
Payments for interfund services used (848,990) (91,098) (633,632) - (124,260)
Net cash provided by (used for) operating activities 2,200,578 10,937 1,144,349 1,341,224 (295,932)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in 400,000 - - - 400,000
Interfund borrowing (384,381) - - (384,381) -
Collections on advances to component units 93,094 - 46,547 46,547 -
Net cash provided by (used for) noncapital financing activities 108,713 - 46,547 (337,834) 400,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (659,722) - (659,722) - -
118
Proceeds from sale of capital assets 74,558 - 74,558 - -
Net cash provided by (used for) capital and related financing activities (585,164) - (585,164) - -
CASH FLOW FROM INVESTING ACTIVITIES
Investment earnings 25,649 336 12,892 8,751 3,670
Net increase (decrease) in cash and investments 1,749,776 11,273 618,624 1,012,141 107,738
Cash and investments at beginning of year 1,809,803 56,580 915,651 - 837,572
Cash and investments at end of year $ 3,559,579 $ 67,853 $ 1,534,275 $ 1,012,141 $ 945,310
Reconciliation of operating income (loss) to net cash provided by (used for)
operating activities
Operating income (loss) $ 46,912 $ 13,791 $ 552,029 $ (266,331) $ (252,577)
Adjustments to reconcile operating income (loss) to net cash provided by
(used for) operating activities
Depreciation expense 499,466 2,500 469,305 - 27,661
Change in assets and liabilities
Receivables 1,277,582 (21,497) 40,419 1,258,660 -
Inventories (31,549) - (31,549) - -
Prepaid items 386 (1,129) 4,217 (4,286) 1,584
Accounts payable 510,189 (429) 147,804 353,703 9,111
Accrued liabilities (102,408) 17,701 (37,876) (522) (81,711)
Net cash provided by (used for) operating activities $ 2,200,578 $ 10,937 $ 1,144,349 $ 1,341,224 $ (295,932)
149
DESCRIPTION OF
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by a government in a trustee capacity for individuals, private
organizations, other governments or other funds.
A list and description of the fiduciary funds maintained by the City follows:
CUSTODIAL FUNDS are used to report fiduciary activities that are not required to be reported in pension (and
other employee benefit) trust funds, investment trust funds, or private-purpose trust funds.
Collector – to account for the collections and disbursement of funds to other entities and individuals and to
account for payroll withholdings and their remittance to the appropriate governmental agencies.
Current Tax – to account for levy, collection and payment of taxes levied for the general and other funds of the
City, county, public school districts, and other governmental entities.
Rehab Loan Escrow – to account for deposits made by housing rehabilitation program participants and their
expenditures for the intended purposes.
119
150
City of Muskegon
COMBINING STATEMENT OF NET POSITION
Custodial Funds
June 30, 2022
Total Current Rehab Loan
Custodial Funds Collector Tax Escrow
ASSETS
Cash and investments $ 816,055 $ 815,674 $ - $ 381
Accounts receivable 13,835 13,835 - -
Total assets 829,890 829,509 - 381
LIABILITIES
Accounts payable 19,517 19,136 - 381
Due to other governmental units 622,373 622,373 - -
Deposits held for others 188,000 188,000 - -
Total liabilities 829,890 829,509 - 381
NET POSITION
Restricted for individuals, organizations,
and other governments $ - $ - $ - $ -
120
151
City of Muskegon
COMBINING STATEMENT OF CHANGES IN NET POSITION
Custodial Funds
For the year ended June 30, 2022
Total Current Rehab Loan
Custodial Funds Collector Tax Escrow
ADDITIONS
Tax collections for other governments $ 24,329,719 $ 378,627 $ 23,951,092 $ -
Other collections for third parties 1,521,847 1,521,847 - -
Total additions 25,851,566 1,900,474 23,951,092 -
DEDUCTIONS
Payment of taxes to other governments 24,329,719 378,627 23,951,092 -
Other payments to third parties 1,521,847 1,521,847 - -
Total deductions 25,851,566 1,900,474 23,951,092 -
Change in net position - - - -
Net position at beginning of year - - - -
Net position at end of year $ - $ - $ - $ -
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152
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122
153
DESCRIPTION OF
DISCRETELY PRESENTED COMPONENT UNITS
A list and description of the discretely presented component units maintained by the City are as follows:
Downtown Development Authority – to account for the collection of tax increment revenues, the issuance and
repayment of debt and the construction of public facilities to promote and facilitate economic growth in the
downtown.
Local Development Finance Authority - SmartZone – to account for the collection of tax increment revenues and
the construction of public facilities to promote and facilitate economic growth in the SmartZone Hi-Tech Park.
Tax Increment Finance Authority – to account for the collection of tax increment revenues, the issuance and
repayment of debt to promote and facilitate economic growth in a sub section of the downtown.
Brownfield Redevelopment Authorities – to account for the collection of tax increment revenues for
environmental remediation in designated brownfield areas. Currently there are six designated brownfield areas
capturing tax increments.
Area I – Betten-Henry Street brownfield site.
Area II – Former downtown mall brownfield site.
Area III – Terrace Point brownfield site.
Area IV – Pigeon Hill brownfield site.
Area V – Hartshore Marina site.
Area VI – Scattered housing site.
123
154
City of Muskegon
COMBINING BALANCE SHEET
Discretely Presented Component Units
June 30, 2022
Local
Total Discretely Development
Presented Finance Downtown Tax Increment Brownfield
Component Authority - Development Finance Redevelopment
Units SmartZone Authority Authority Authorities
ASSETS
Cash and investments $ 403,928 $ 46,925 $ 336,989 $ 20,014 $ -
Accounts receivable 32,616 - 32,616 - -
Total assets $ 436,544 $ 46,925 $ 369,605 $ 20,014 $ -
LIABILITIES
Accounts payable $ 109,697 $ - $ 109,697 $ - $ -
Accrued liabilities 4,289 - 4,289 - -
124
Due to other governmental units 2,000 - 2,000 - -
Due to primary government 64,211 - - - 64,211
Advances from primary government 1,046,980 - - - 1,046,980
Total liabilities 1,227,177 - 115,986 - 1,111,191
FUND BALANCES (DEFICITS)
Unassigned (790,633) 46,925 253,619 20,014 (1,111,191)
Total liabilities and fund
balances (deficits) $ 436,544 $ 46,925 $ 369,605 $ 20,014 $ -
155
City of Muskegon
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
Discretely Presented Component Units
June 30, 2022
Total fund balances (deficits)—governmental funds $ (790,633)
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not current financial
resources and, therefore, are not reported in the governmental funds.
Cost of capital assets $ 4,198,258
Accumulated depreciation (3,035,729) 1,162,529
Long-term liabilities in governmental activities are not due and payable in the
current period and, therefore, are not reported in the governmental funds.
Accrued interest payable (7,000)
Bonds and notes payable (1,352,248) (1,359,248)
Net position of governmental activities $ (987,352)
125
156
City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
Discretely Presented Component Units
For the year ended June 30, 2022
Local
Total Discretely Development
Presented Finance Downtown Tax Increment Brownfield
Component Authority - Development Finance Redevelopment
Units SmartZone Authority Authority Authorities
REVENUES
Property taxes $ 1,139,110 $ 85,861 $ 321,446 $ 42,475 $ 689,328
Intergovernmental revenues
State 36,895 3,084 - 9,596 24,215
Local 217,000 200,000 17,000 - -
Investment earnings 1,357 112 543 58 644
Other 639,439 - 638,765 - 674
Total revenues 2,033,801 289,057 977,754 52,129 714,861
126
EXPENDITURES
Current
Community and economic development 1,508,284 - 810,219 50,000 648,065
Debt service
Principal 245,000 245,000 - - -
Interest and fees 55,240 37,300 - - 17,940
Total expenditures 1,808,524 282,300 810,219 50,000 666,005
Net change in fund balances (deficits) 225,277 6,757 167,535 2,129 48,856
Fund balances (deficits) at beginning of year (1,015,910) 40,168 86,084 17,885 (1,160,047)
Fund balances (deficits) at end of year $ (790,633) $ 46,925 $ 253,619 $ 20,014 $ (1,111,191)
157
City of Muskegon
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES (DEFICITS)
TO THE STATEMENT OF ACTIVITIES
Discretely Presented Component Units
For the year ended June 30, 2022
Net change in fund balances (deficits)—total governmental funds $ 225,277
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report outlays for capital assets as expenditures. However,
in the Statement of Activities, the cost of these assets is allocated over their
estimated useful lives and reported as depreciation expense.
Depreciation expense (172,648)
The issuance of long-term debt provides current financial resources to
governmental funds, but increases liabilities in the Statement of Net Position.
Repayment of debt is an expenditure in the governmental funds, but reduces
long-term liabilities in the Statement of Net Position.
Repayment of principal on long-term debt 395,000
Changes in accrual of interest and amortization of premiums and discounts
Change in accrued interest payable $ 2,650
Amortization of premiums 13,129 15,779
Change in net position of governmental activities $ 463,408
127
158
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128
159
SCHEDULE OF INDEBTEDNESS
129
160
City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2022
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2021 6/30/2022 Payable
Business-Type Activities Bonds and Loans Payable:
Drinking Water State Revolving 3/2/2004 $ 13,900,000 2.13% 10/01/21 $ 775,000 $ - $ -
Fund 2.13% 10/01/22 790,000 790,000 60,988
2.13% 10/01/23 810,000 810,000 43,988
Type of debt: state loan 2.13% 10/01/24 825,000 825,000 26,616
Revenue pledged: water system net revenues 2.13% 10/01/25 840,000 840,000 8,925
4,040,000 3,265,000 140,517
Drinking Water State Revolving Fund* 8/30/2019 $ 1,600,000 2.00% 10/01/21 65,000 - -
2.00% 10/01/22 70,000 70,000 30,700
Type of debt: state loan 2.00% 10/01/23 70,000 70,000 29,300
Revenue Pledged: water system net revenues 2.00% 10/01/24 70,000 70,000 27,900
Forgiveness: 20% 2.00% 10/01/25 70,000 70,000 26,500
2.00% 10/01/26 75,000 75,000 25,100
2.00% 10/01/27 75,000 75,000 23,600
2.00% 10/01/28 75,000 75,000 22,100
2.00% 10/01/29 75,000 75,000 20,600
2.00% 10/01/30 80,000 80,000 19,100
2.00% 10/01/31 80,000 80,000 17,500
2.00% 10/01/32 80,000 80,000 15,900
2.00% 10/01/33 85,000 85,000 14,300
2.00% 10/01/34 85,000 85,000 12,600
2.00% 10/01/35 85,000 85,000 10,900
2.00% 10/01/36 90,000 90,000 9,200
2.00% 10/01/37 90,000 90,000 7,400
2.00% 10/01/38 90,000 90,000 5,600
2.00% 10/01/39 95,000 95,000 3,800
2.00% 10/01/40 86,874 95,000 1,900
1,591,874 1,535,000 324,000
Sanitary Sewer State Revolving Fund* 8/30/2019 $ 2,875,000 2.00% 10/01/21 120,000 - -
2.00% 10/01/22 120,000 120,000 53,900
Type of debt: state loan 2.00% 10/01/23 125,000 125,000 51,450
Revenue Pledged: sanitary sewer system net revenues 2.00% 10/01/24 125,000 125,000 48,950
Forgiveness: 75% 2.00% 10/01/25 130,000 130,000 46,400
2.00% 10/01/26 130,000 130,000 43,800
2.00% 10/01/27 135,000 135,000 41,150
2.00% 10/01/28 135,000 135,000 38,450
2.00% 10/01/29 140,000 140,000 35,700
2.00% 10/01/30 140,000 140,000 32,900
2.00% 10/01/31 145,000 145,000 30,050
2.00% 10/01/32 145,000 145,000 27,150
2.00% 10/01/33 150,000 150,000 24,200
2.00% 10/01/34 150,000 150,000 21,200
2.00% 10/01/35 155,000 155,000 18,150
2.00% 10/01/36 139,459 160,000 15,000
2.00% 10/01/37 - 160,000 11,800
2.00% 10/01/38 - 165,000 8,550
2.00% 10/01/39 - 170,000 5,200
2.00% 10/01/40 - 175,000 1,750
2,184,459 2,755,000 555,750
Drinking Water State Revolving Fund* 9/30/2020 $ 3,844,750 2.00% 04/01/22 154,750 - -
2.00% 04/01/23 160,000 160,000 65,882
Type of debt: state loan 2.00% 04/01/24 165,000 165,000 62,682
Revenue Pledged: water system net revenues 2.00% 04/01/25 170,000 170,000 59,382
Forgiveness: 9% 2.00% 04/01/26 135,296 170,000 55,982
2.00% 04/01/27 - 175,000 52,582
2.00% 04/01/28 - 180,000 49,082
2.00% 04/01/29 - 180,000 45,482
2.00% 04/01/30 - 185,000 41,882
2.00% 04/01/31 - 190,000 38,182
2.00% 04/01/32 - 195,000 34,382
2.00% 04/01/33 - 195,000 30,482
2.00% 04/01/34 - 200,000 26,582
2.00% 04/01/35 - 205,000 22,582
2.00% 04/01/36 - 210,000 18,482
2.00% 04/01/37 - 215,000 14,282
2.00% 04/01/38 - 220,000 9,982
2.00% 04/01/39 - 220,000 5,582
2.00% 04/01/40 - 59,101 1,182
785,046 3,294,101 634,676
130
161
City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2022
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2021 6/30/2022 Payable
Business-Type Activities Bonds and Loans Payable—Continued:
Sanitary Sewer State Revolving Fund* 9/30/2020 $ 3,772,000 2.00% 04/01/22 $ 152,000 $ - $ -
2.00% 04/01/23 155,000 155,000 72,400
Type of debt: state loan 2.00% 04/01/24 148,074 160,000 69,300
Revenue Pledged: water system net revenues 2.00% 04/01/25 - 165,000 66,100
Forgiveness: 20% 2.00% 04/01/26 - 170,000 62,800
2.00% 04/01/27 - 170,000 59,400
2.00% 04/01/28 - 175,000 56,000
2.00% 04/01/29 - 180,000 52,500
2.00% 04/01/30 - 185,000 48,900
2.00% 04/01/31 - 185,000 45,200
2.00% 04/01/32 - 190,000 41,500
2.00% 04/01/33 - 190,000 37,700
2.00% 04/01/34 - 195,000 33,900
2.00% 04/01/35 - 200,000 30,000
2.00% 04/01/36 - 205,000 26,000
2.00% 04/01/37 - 210,000 21,900
2.00% 04/01/38 - 215,000 17,900
2.00% 04/01/39 - 220,000 13,400
2.00% 04/01/40 - 225,000 9,000
2.00% 04/01/41 - 130,614 4,500
455,074 3,525,614 768,400
TOTAL BUSINESS TYPE ACTIVITIES BONDS AND LOAN PAYABLE: $ 9,056,453 $ 14,374,715 $ 2,423,343
*If certain conditions are met, a portion of the principal amount on these debts may be forgiven.
Governmental Activities Bonds and Loan Payable:
Capital Improvement Refunding Bonds of 2016 3/8/2016 $ 4,815,000 3.00% 10/01/21 $ 305,000 $ - $ -
($159,903 unamortized premium) 3.00% 10/01/22 300,000 300,000 132,900
3.00% 10/01/23 300,000 300,000 122,400
Type of debt: limited general obligation bonds 4.00% 10/01/24 320,000 320,000 110,000
Revenue pledged: general revenues 4.00% 10/01/25 325,000 325,000 97,100
4.00% 10/01/26 325,000 325,000 84,100
4.00% 10/01/27 325,000 325,000 71,100
4.00% 10/01/28 325,000 325,000 58,100
4.00% 10/01/29 325,000 325,000 45,100
4.00% 10/01/30 325,000 325,000 32,100
4.00% 10/01/31 320,000 320,000 19,200
4.00% 10/01/32 320,000 320,000 6,400
3,815,000 3,510,000 778,500
Capital Improvement Bonds of 2011 9/30/2011 $ 2,000,000 2.98% 09/01/21 230,000 - -
(streets) 230,000 - -
Type of debt: limited general obligation bonds
Revenue pledged: gas tax, general revenues
Capital Improvement Bonds of 2019 10/9/2019 $ 19,420,000 1.83% 10/01/21 205,000 - -
Convention Center 1.88% 10/01/22 250,000 250,000 607,985
($128,150 unamortized discount) 1.93% 10/01/23 300,000 300,000 602,740
2.00% 10/01/24 320,000 320,000 596,645
Type of debt: limited general obligation bonds 2.10% 10/01/25 340,000 340,000 589,875
Revenue Pledged: excise tax on hotel rooms levied by the 2.24% 10/01/26 360,000 360,000 582,273
County of Muskegon pursuant to Act 263 2.34% 10/01/27 380,000 380,000 573,795
2.43% 10/01/28 405,000 405,000 564,429
2.60% 10/01/29 430,000 430,000 553,918
2.60% 10/01/30 455,000 455,000 542,412
2.68% 10/01/31 480,000 480,000 530,066
2.78% 10/01/32 510,000 510,000 516,544
2.83% 10/01/33 540,000 540,000 501,815
2.93% 10/01/34 570,000 570,000 485,822
3.30% 10/01/35 605,000 605,000 467,399
3.30% 10/01/36 640,000 640,000 446,670
3.30% 10/01/37 680,000 680,000 424,692
3.30% 10/01/38 720,000 720,000 401,382
3.30% 10/01/39 760,000 760,000 376,740
3.48% 10/01/40 800,000 800,000 350,166
3.48% 10/01/41 845,000 845,000 321,543
3.48% 10/01/42 895,000 895,000 291,267
3.48% 10/01/43 940,000 940,000 259,338
3.48% 10/01/44 995,000 995,000 225,669
3.58% 10/01/45 1,045,000 1,045,000 189,651
3.58% 10/01/46 1,105,000 1,105,000 151,165
3.58% 10/01/47 1,160,000 1,160,000 110,622
3.58% 10/01/48 1,225,000 1,225,000 67,931
3.58% 10/01/49 1,285,000 1,285,000 23,001
19,245,000 19,040,000 11,355,555
131
162
City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2022
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2021 6/30/2022 Payable
Governmental Activities Bonds and Loan Payable—Continued:
Capital Improvement Bonds of 2020 11/12/2020 $ 4,325,000 4.00% 10/01/21 $ 320,000 $ - $ -
Series 2020A 4.00% 10/01/22 335,000 335,000 170,800
($673,024 unamortized premium) 4.00% 10/01/23 360,000 360,000 156,900
4.00% 10/01/24 370,000 370,000 142,300
Type of debt: limited general obligation bonds 4.00% 10/01/25 385,000 385,000 127,200
Revenue pledged: general revenues 5.00% 10/01/26 405,000 405,000 109,375
5.00% 10/01/27 420,000 420,000 88,750
5.00% 10/01/28 445,000 445,000 67,125
5.00% 10/01/29 470,000 470,000 44,250
5.00% 10/01/30 485,000 485,000 20,375
2.50% 10/01/31 30,000 30,000 7,875
2.50% 10/01/32 30,000 30,000 7,125
2.50% 10/01/33 30,000 30,000 6,375
2.50% 10/01/34 30,000 30,000 5,625
2.50% 10/01/35 35,000 35,000 4,813
2.50% 10/01/36 35,000 35,000 3,937
2.50% 10/01/37 35,000 35,000 3,063
2.50% 10/01/38 35,000 35,000 2,187
2.50% 10/01/39 35,000 35,000 1,313
2.50% 10/01/40 35,000 35,000 437
4,325,000 4,005,000 969,825
Capital Improvement Bonds of 2020 11/12/2020 $ 2,055,000 0.68% 10/01/21 85,000 - -
Series 2020B 0.68% 10/01/22 85,000 85,000 45,546
0.68% 10/01/23 90,000 90,000 44,951
Type of debt: limited general obligation bonds 1.35% 10/01/24 90,000 90,000 44,038
Revenue pledged: general revenues 1.35% 10/01/25 90,000 90,000 42,823
1.35% 10/01/26 90,000 90,000 41,608
2.00% 10/01/27 95,000 95,000 40,050
2.00% 10/01/28 95,000 95,000 38,150
2.00% 10/01/29 95,000 95,000 36,250
2.00% 10/01/30 100,000 100,000 34,300
2.60% 10/01/31 100,000 100,000 32,000
2.60% 10/01/32 105,000 105,000 29,335
2.60% 10/01/33 105,000 105,000 26,605
2.60% 10/01/34 110,000 110,000 23,810
3.20% 10/01/35 110,000 110,000 20,950
3.20% 10/01/36 115,000 115,000 17,680
3.20% 10/01/37 120,000 120,000 13,920
3.20% 10/01/38 120,000 120,000 10,080
3.20% 10/01/39 125,000 125,000 6,160
3.20% 10/01/40 130,000 130,000 2,080
2,055,000 1,970,000 550,335
Installment Purchase Agreement of 2021 9/15/2021 $ 1,370,873 1.78% 09/25/22 - 268,269 18,471
(fire tower ladder truck) 1.78% 09/25/23 - 273,023 13,717
1.78% 09/25/24 - 277,860 8,880
Type of debt: installment purchase agreements 1.78% 09/25/25 - 282,784 3,956
Revenue pledged: general revenues 1.78% 09/25/26 - 71,475 210
- 1,173,411 45,234
TOTAL GOVERNMENTAL ACTIVITIES BONDS AND LOANS PAYABLE $ 29,670,000 $ 29,698,411 $ 13,699,449
TOTAL PRIMARY GOVERNMENT BONDS AND LOANS PAYABLE $ 38,726,453 $ 44,073,126 $ 16,122,792
Discretely Presented Component Unit Bonds and Loans Payable:
Local Development Finance Authority 3/20/2012 $ 4,100,000 4.00% 11/01/21 $ 245,000 $ - $ -
Smartzone Refunding Bonds 3.00% 11/01/22 255,000 255,000 28,575
($16,547 unamortized premium) 3.00% 11/01/23 265,000 265,000 20,775
3.00% 11/01/24 275,000 275,000 12,675
Type of debt: limited general obligation bonds 3.00% 11/01/25 285,000 285,000 4,275
Revenue pledged: LDFA tax increments, general revenues 1,325,000 1,080,000 66,300
TOTAL DISCRETELY PRESENTED COMPONENT UNIT BONDS AND LOANS PAYABLE $ 1,325,000 $ 1,080,000 $ 66,300
TOTAL REPORTING ENTITY BONDS AND LOANS PAYABLE $ 40,051,453 $ 45,153,126 $ 16,189,092
132
163
Statistical Section
This part of the City of Muskegon’s Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the City’s overall
financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the
City’s financial performance and well-being have changed over time. 134
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting
the City’s ability to generate its property and sales taxes. 139
Debt Capacity
These schedules present information to help the reader assess the affordability of
the City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future. 146
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place
and to help make comparisons over time and with other governments. 150
Operating Information
These schedules contain information about the City’s operations and resources to help
the reader understand how the City’s financial information relates to the services the
City provides and the activities it performs. 152
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual
Financial Reports for the relevant year.
133
164
City of Muskegon
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2013 2014 2015 (a) 2016 2017 2018 (b) 2019 2020 2021 2022
Governmental Activities
Net Investment in Capital Assets $ 63,842,092 $ 63,731,255 $ 63,514,691 $ 64,326,891 $ 62,520,466 $ 61,267,518 $ 66,734,006 $ 70,274,679 $ 72,200,515 $ 75,201,511
Restricted 4,572,848 4,023,895 4,807,531 4,140,342 3,777,410 6,138,596 5,519,207 4,459,799 5,003,269 5,845,255
Unrestricted 13,299,523 12,811,852 491,914 (4,142,119) (5,566,349) (8,350,634) (14,355,143) (28,084,776) (29,065,065) (22,938,317)
Total Governmental Net Position $ 81,714,463 $ 80,567,002 $ 68,814,136 $ 64,325,114 $ 60,731,527 $ 59,055,480 $ 57,898,070 $ 46,649,702 $ 48,138,719 $ 58,108,449
Business-type Activities
Net Investment in Capital Assets $ 40,032,858 $ 39,365,043 $ 39,231,223 $ 39,013,529 $ 38,114,686 $ 38,549,547 $ 41,741,666 $ 44,543,391 $ 54,257,461 $ 54,668,925
Restricted 599,500 599,500 599,500 599,500 599,500 599,500 599,500 599,500 822,000 822,000
Unrestricted 8,491,848 8,377,093 6,423,540 5,762,272 6,382,906 6,041,091 2,424,616 (2,353,801) (873,805) 424,949
Total Business-type Activities Net Position $ 49,124,206 $ 48,341,636 $ 46,254,263 $ 45,375,301 $ 45,097,092 $ 45,190,138 $ 44,765,782 $ 42,789,090 $ 54,205,656 $ 55,915,874
Primary Government
Net Investment in Capital Assets $ 103,874,950 $ 103,096,298 $ 102,745,914 $ 103,340,420 $ 100,635,152 $ 99,817,065 $ 108,475,672 $ 114,818,070 $ 126,457,976 $ 129,870,436
Restricted 5,172,348 4,623,395 5,407,031 4,739,842 4,376,910 6,738,096 6,118,707 5,059,299 5,825,269 6,667,255
Unrestricted 21,791,371 21,188,945 6,915,454 1,620,153 816,557 (2,309,543) (11,930,527) (30,438,577) (29,938,870) (22,513,368)
Total Primary Government Net Position $ 130,838,669 $ 128,908,638 $ 115,068,399 $ 109,700,415 $ 105,828,619 $ 104,245,618 $ 102,663,852 $ 89,438,792 $ 102,344,375 $ 114,024,323
134
(a) In 2015, the City implemented GASB 68 and 71 which changed how governments measure and report pension liabilities.
(b) In 2018, the City implemented GASB 75 which changed how governments measure and report other postemployment benefit liabilities.
SOURCE: The information in these schedules (unless otherwise
noted) is derived from the comprehensive annual financial reports for
the relevant year.
165
City of Muskegon
CHANGES IN NET POSITION
Last Ten Fiscal Years
2013 2014 2015 (a) 2016 2017 2018 (b) 2019 2020 2021 2022
EXPENSES
Governmental Activities
Public representation $ 893,981 $ 1,030,006 $ 939,907 $ 1,107,551 $ 1,113,897 $ 1,347,618 $ 1,336,014 $ 1,501,079 $ 1,603,410 $ 1,715,050
Administrative services 565,307 543,425 614,757 663,077 679,139 507,275 800,887 962,981 826,344 913,923
Financial services 2,241,061 2,171,958 2,547,766 2,331,236 2,483,519 1,995,426 2,700,775 3,007,018 5,039,787 5,473,498
Public safety 12,987,842 12,946,466 14,243,233 17,118,742 16,910,473 12,404,126 20,433,642 25,982,246 18,249,379 13,387,378
Public works 3,201,806 3,361,422 3,183,627 3,109,454 3,551,230 3,471,618 4,438,358 4,581,526 4,025,982 4,687,660
Highways, streets and bridges 6,672,374 7,053,326 7,165,703 7,251,882 6,996,540 6,917,260 7,185,642 7,593,019 6,862,862 7,308,858
Community and economic development 2,499,404 2,417,518 2,712,131 5,223,431 3,738,566 5,015,160 2,890,216 5,359,282 4,999,907 9,857,082
Culture and recreation 1,592,358 1,671,185 1,806,790 3,551,692 3,918,814 3,994,582 4,541,739 5,269,578 4,507,120 6,588,542
General administration 322,348 366,634 389,248 326,452 301,287 376,112 302,582 389,863 404,303 511,323
Interest on long-term debt 291,535 277,345 271,607 248,223 172,591 165,023 151,304 732,065 1,112,166 881,204
Total Governmental Activities Expenses 31,268,016 31,839,285 33,874,769 40,931,740 39,866,056 36,194,200 44,781,159 55,378,657 47,631,260 51,324,518
Business-type Activities
Water 6,228,788 6,016,192 6,047,244 6,750,826 7,206,564 7,090,770 7,752,703 8,437,862 8,612,574 9,261,276
Sewer 7,226,839 7,582,602 8,460,509 8,669,469 8,876,690 8,093,752 9,119,941 9,902,515 8,084,729 8,153,673
Marina and launch ramp 426,553 503,997 305,990 327,832 336,912 377,614 430,431 529,007 515,025 461,504
Total Business-type Activities Expenses 13,882,180 14,102,791 14,813,743 15,748,127 16,420,166 15,562,136 17,303,075 18,869,384 17,212,328 17,876,453
Total Primary Government Expenses $ 45,150,196 $ 45,942,076 $ 48,688,512 $ 56,679,867 $ 56,286,222 $ 51,756,336 $ 62,084,234 $ 74,248,041 $ 64,843,588 $ 69,200,971
PROGRAM REVENUES
Governmental Activities
Charges for Services
Public representation $ 173,739 $ 189,444 $ 188,638 $ 226,559 $ 228,767 $ 232,736 $ 250,931 $ 253,511 $ 280,395 $ 324,314
135
Administrative services 268,535 325,937 415,308 474,737 572,739 539,178 604,290 538,791 504,281 715,421
Financial services 830,919 871,632 823,547 925,474 895,924 903,322 921,748 913,968 988,501 1,085,220
Public safety 1,133,666 1,407,722 1,218,644 1,248,911 1,824,114 2,794,347 2,292,158 2,290,640 2,207,996 2,680,675
Public works 671,494 796,739 571,426 379,877 646,876 743,110 691,312 835,149 828,098 854,793
Highways, streets and bridges 245,609 351,962 258,475 234,861 256,190 188,248 191,883 193,267 187,478 522,779
Community and economic development 432,240 477,486 576,863 444,632 706,195 348,933 786,120 769,860 912,247 498,766
Culture and recreation 606,818 535,211 368,168 1,229,067 1,463,839 1,651,304 1,853,547 2,124,968 1,976,029 4,389,524
General administration 287,729 50,728 48,764 52,512 37,892 38,549 40,400 59,537 65,592 76,182
Operating grants and contributions 4,681,345 4,664,098 5,071,239 5,330,825 5,208,818 6,478,526 6,892,530 7,398,202 9,839,245 11,024,058
Capital grants and contributions 886,108 1,408,424 3,496,623 3,804,656 862,074 2,305,620 4,015,097 4,064,216 2,901,176 2,815,119
Total Governmental Program Revenues 10,218,202 11,079,383 13,037,695 14,352,111 12,703,428 16,223,873 18,540,016 19,442,109 20,691,038 24,986,851
Business-type Activities
Water 5,890,614 6,099,480 6,375,869 7,485,013 7,430,314 7,445,669 7,946,983 8,316,552 8,752,570 8,903,549
Sewer 7,058,315 6,633,911 6,363,808 6,305,554 7,620,208 8,217,497 8,098,828 8,397,838 9,298,156 10,298,642
Marina and launch ramp 234,229 228,339 255,638 287,547 278,753 325,917 298,312 74,659 178,706 292,416
Operating grants and contributions 6,188 - - - 2,436 42,531 510,533 94,462 - 103,208
Capital grants and contributions 88,046 327,240 474,681 765,363 784,969 - - - 10,354,544 -
Total Business-type program revenues 13,277,392 13,288,970 13,469,996 14,843,477 16,116,680 16,031,614 16,854,656 16,883,511 28,583,976 19,597,815
Total Primary Government program revenues $ 23,495,594 $ 24,368,353 $ 26,507,691 $ 29,195,588 $ 28,820,108 $ 32,255,487 $ 35,394,672 $ 36,325,620 $ 49,275,014 $ 44,584,666
NET (EXPENSE) REVENUE
Governmental Activities $ (21,049,814) $ (20,759,902) $ (20,837,074) $ (26,579,629) $ (27,162,628) $ (19,970,327) $ (26,241,143) $ (35,936,548) $ (26,940,222) $ (26,337,667)
Business-type Activities (604,788) (813,821) (1,343,747) (904,650) (303,486) 469,478 (448,419) (1,985,873) 11,371,648 1,721,362
Total Primary Government net expense $ (21,654,602) $ (21,573,723) $ (22,180,821) $ (27,484,279) $ (27,466,114) $ (19,500,849) $ (26,689,562) $ (37,922,421) $ (15,568,574) $ (24,616,305)
166
City of Muskegon
CHANGES IN NET POSITION
Last Ten Fiscal Years
2013 2014 2015 (a) 2016 2017 2018 (b) 2019 2020 2021 2022
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental Activities
Property taxes $ 7,592,847 $ 7,383,236 $ 7,894,189 $ 8,366,212 $ 8,389,243 $ 8,450,103 $ 8,230,573 $ 8,466,886 $ 8,813,155 $ 9,182,184
Income taxes 8,057,145 7,762,719 8,478,231 8,386,775 8,707,279 8,995,294 8,939,887 9,437,451 9,609,218 10,020,370
Franchise fees 358,785 358,754 369,965 372,117 378,955 368,495 380,343 361,405 374,219 369,420
Grants and contributions not restricted for specific programs 3,700,871 3,813,221 3,989,178 4,051,050 4,630,111 4,955,168 5,102,602 5,276,036 6,427,138 15,303,423
Unrestricted investment earnings 73,157 146,590 99,733 189,408 106,653 92,771 546,533 568,408 229,177 (644,067)
Miscellaneous 102,388 124,085 805,432 626,014 512,738 545,536 550,381 577,677 370,268 918,179
Gain on sale of capital asset 44,899 23,836 20,302 99,031 844,062 712,415 1,333,414 317 2,641,064 1,122,888
Transfers - - - - - - - - (35,000) 35,000
Total Governmental Program Revenues 19,930,092 19,612,441 21,657,030 22,090,607 23,569,041 24,119,782 25,083,733 24,688,180 28,429,239 36,307,397
Business-type Activities
Unrestricted investment earnings 33,148 31,251 29,879 25,688 25,277 28,550 24,063 9,181 9,918 23,856
Transfers - - - - - - - - 35,000 (35,000)
Total Business-type program revenues 33,148 31,251 29,879 25,688 25,277 28,550 24,063 9,181 44,918 (11,144)
Total Primary Government program revenues $ 19,963,240 $ 19,643,692 $ 21,686,909 $ 22,116,295 $ 23,594,318 $ 24,148,332 $ 25,107,796 $ 24,697,361 $ 28,474,157 $ 36,296,253
CHANGE IN NET POSITION
Governmental Activities $ (1,119,722) $ (1,147,461) $ 819,956 $ (4,489,022) $ (3,593,587) $ 4,149,455 $ (1,157,410) $ (11,248,368) $ 1,489,017 $ 9,969,730
Business-type Activities (571,640) (782,570) (1,313,868) (878,962) (278,209) 498,028 (424,356) (1,976,692) 11,416,566 1,710,218
Total Primary Government $ (1,691,362) $ (1,930,031) $ (493,912) $ (5,367,984) $ (3,871,796) $ 4,647,483 $ (1,581,766) $ (13,225,060) $ 12,905,583 $ 11,679,948
(a) In 2015, the City implemented GASB 68 and 71 which changed how governments measure and report pension liabilities.
136
(b) In 2018, the City implemented GASB 75 which changed how governments measure and report other postemployment benefit liabilities.
SOURCE: The information in these schedules (unless otherwise noted) is
derived from the comprehensive annual financial reports for the relevant year.
167
City of Muskegon
FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General fund
Nonspendable $ 447,341 $ 300,952 $ 220,178 $ 232,332 $ 209,353 $ 222,458 $ 241,684 $ 280,986 $ 269,920 $ 881,961
Restricted - - - - - - - - 66,965 8,701
Committed - - - - - - - - 39,000 189,037
Assigned 2,292,495 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,800,000
Unassigned 4,613,722 5,495,145 5,883,318 6,098,977 6,148,292 6,469,108 6,563,511 5,920,869 9,121,955 7,981,674
Total general fund $ 7,353,558 $ 7,496,097 $ 7,803,496 $ 8,031,309 $ 8,057,645 $ 8,391,566 $ 8,505,195 $ 7,901,855 $ 11,197,840 $ 10,861,373
All other governmental funds
Nonspendable $ 1,547,793 $ 1,556,347 $ 2,073,747 $ 1,597,371 $ 1,716,825 $ 1,589,699 $ 1,624,737 $ 1,663,979 $ 1,709,000 $ 1,737,125
Restricted 2,749,396 2,305,385 3,159,130 2,995,610 2,726,754 5,130,188 4,621,126 3,842,461 4,397,502 5,170,662
Assigned 2,087,359 1,729,457 2,146,050 1,373,669 3,510,747 2,619,342 1,823,959 9,764,600 1,907,590 2,195,895
Unassigned (82,048) (100,054) - - - - - (1,601,331) (2,919,404) -
Total all other governmental funds $ 6,302,500 $ 5,491,135 $ 7,378,927 $ 5,966,650 $ 7,954,326 $ 9,339,229 $ 8,069,822 $ 13,669,709 $ 5,094,688 $ 9,103,682
SOURCE: The information in these schedules
137
(unless otherwise noted) is derived from the
comprehensive annual financial reports for the
relevant year.
168
City of Muskegon
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes $ 14,832,027 $ 14,954,904 $ 15,830,137 $ 16,178,761 $ 16,667,272 $ 16,877,055 $ 16,582,030 $ 17,253,857 $ 17,700,658 $ 18,795,646
Intergovernmental 9,403,554 9,945,065 12,301,594 11,711,788 10,743,434 13,488,014 15,776,333 16,777,402 18,131,093 28,487,691
Charges for services 2,769,227 2,569,335 2,468,889 3,468,938 3,918,217 4,229,797 4,430,419 4,563,652 4,898,325 7,744,999
Other 2,795,952 3,256,324 4,003,105 3,868,958 4,005,126 5,251,208 5,312,773 5,745,006 5,745,273 5,399,182
Total revenues 29,800,760 30,725,628 34,603,725 35,228,445 35,334,049 39,846,074 42,101,555 44,339,917 46,475,349 60,427,518
Expenditures
Public representation 892,113 1,031,984 930,788 1,064,503 1,080,032 1,383,573 1,281,107 1,379,406 1,556,327 1,758,928
Administrative services 508,130 497,025 554,330 577,454 624,284 537,913 739,301 844,270 783,403 945,841
Financial services 2,196,917 2,197,651 2,476,740 2,068,208 2,236,941 2,191,245 2,394,866 2,358,848 4,810,339 5,668,254
Public safety 12,724,094 12,987,898 13,285,004 13,476,557 14,086,619 15,156,977 16,131,196 16,820,356 14,641,568 15,781,113
Public works 2,878,328 2,918,305 2,876,576 2,864,878 3,206,050 3,377,174 4,176,904 4,187,956 3,604,722 4,472,813
Highways, streets and bridges 2,815,337 3,011,611 2,986,909 3,102,391 3,096,875 4,554,968 2,963,498 2,965,598 2,666,529 3,330,669
Community and economic development 2,578,073 2,687,933 2,957,071 5,415,436 3,878,547 3,962,759 2,930,725 4,986,000 5,281,825 10,306,669
Culture and recreation 1,248,174 1,308,481 1,444,471 3,100,338 3,523,178 3,713,177 4,050,986 4,662,534 3,836,817 6,085,847
Other governmental functions 299,812 643,666 369,408 305,807 280,416 355,241 281,711 371,461 380,232 485,024
Debt service
138
Principal 395,211 402,492 417,842 428,199 283,563 288,934 294,313 818,285 2,813,804 1,342,462
Interest 292,554 278,412 272,946 257,516 211,242 197,723 189,905 543,740 943,216 1,011,004
Issuance costs - - - 97,578 - - - 70,525 140,750 1,000
Capital outlay 3,230,586 3,577,837 3,992,111 3,867,579 2,328,615 3,134,369 9,363,862 21,498,055 19,695,829 7,775,915
Total expenditure 30,059,329 31,543,295 32,564,196 36,626,444 34,836,362 38,854,053 44,798,374 61,507,034 61,155,361 58,965,539
Excess of revenues over (under) expenditures (258,569) (817,667) 2,039,529 (1,397,999) 497,687 992,021 (2,696,819) (17,167,117) (14,680,012) 1,461,979
Other financing sources (uses)
Transfers in 1,356,229 743,035 853,910 1,563,094 1,805,000 1,370,000 1,210,236 2,017,077 895,000 9,832,799
Transfers out (784,275) (771,081) (942,933) (1,638,094) (1,818,000) (1,385,000) (1,210,236) (2,037,077) (1,555,000) (10,197,799)
Long-term debt issued - - - 97,578 - - - 21,691,740 7,152,424 1,370,873
Proceeds from sale of capital assets 190,263 176,887 244,685 190,957 1,529,325 741,803 1,541,041 491,924 2,908,552 1,204,675
Total other financing sources (uses) 762,217 148,841 155,662 213,535 1,516,325 726,803 1,541,041 22,163,664 9,400,976 2,210,548
Net change in fund balances $ 503,648 $ (668,826) $ 2,195,191 $ (1,184,464) $ 2,014,012 $ 1,718,824 $ (1,155,778) $ 4,996,547 $ (5,279,036) $ 3,672,527
Debt service as a percentage of noncapital
expenditures 2.56% 2.43% 2.42% 2.09% 1.52% 1.36% 1.37% 3.40% 9.06% 4.60%
SOURCE: The information in these schedules (unless
otherwise noted) is derived from the comprehensive annual
financial reports for the relevant year.
169
City of Muskegon
GOVERNMENTAL ACTIVITIES REVENUES BY SOURCE
Last Ten Fiscal Years
Fiscal Property % of Income % of Intergo- % of Charges for % of Licenses % of Fines % of Interest % of % of %
Year Tax Total Tax Total vernmental Total Service Total and Permits Total and Fees Total and Rent Total Other Total Total Change
2013 $ 7,325,555 24.6% $ 7,506,472 25.2% $ 9,403,554 31.6% $ 2,769,227 9.3% $ 1,238,285 4.2% $ 435,893 1.5% $ 267,397 0.9% $ 854,377 2.9% $ 29,800,760 -4.6%
2014 7,123,481 23.2% 7,831,423 25.5% 9,945,065 32.4% 2,569,335 8.4% 1,570,137 5.1% 418,691 1.4% 352,153 1.1% 915,343 3.0% 30,725,628 3.1%
2015 7,555,471 21.8% 8,274,666 23.9% 12,301,594 35.5% 2,468,889 7.1% 1,361,721 3.9% 452,004 1.3% 343,105 1.0% 1,846,275 5.3% 34,603,725 12.6%
2016 8,026,859 22.8% 8,151,902 23.1% 11,711,788 33.2% 3,468,938 9.8% 1,443,144 4.1% 459,181 1.3% 455,671 1.3% 1,510,962 4.3% 35,228,445 1.8%
2017 8,056,460 22.8% 8,610,812 24.4% 10,743,434 30.4% 3,918,217 11.1% 1,884,341 5.3% 494,369 1.4% 290,578 0.8% 1,335,838 3.8% 35,334,049 0.3%
2018 8,118,381 20.4% 8,758,674 22.0% 13,488,014 33.9% 4,229,797 10.6% 2,965,599 7.4% 457,172 1.1% 212,069 0.5% 1,616,368 4.1% 39,846,074 12.8%
2019 7,890,357 18.7% 8,691,673 20.6% 15,776,333 37.5% 4,430,419 10.5% 2,452,807 5.8% 488,578 1.2% 757,911 1.8% 1,613,477 3.8% 42,101,555 5.7%
2020 8,116,143 18.3% 9,137,714 20.6% 16,777,402 37.8% 4,563,652 10.3% 2,420,604 5.5% 412,575 0.9% 742,567 1.7% 2,169,260 4.9% 44,339,917 5.3%
2021 8,443,832 18.2% 9,256,826 19.9% 18,131,093 39.0% 4,898,325 10.5% 2,246,375 4.8% 594,813 1.3% 477,559 1.0% 2,426,526 5.2% 46,475,349 4.8%
2022 8,793,023 14.6% 10,002,623 16.6% 28,487,691 47.1% 7,744,999 12.8% 2,306,048 3.8% 582,633 1.0% 35,018 0.1% 2,475,483 4.1% 60,427,518 30.0%
SOURCE: The information in these schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the relevant year.
139
170
City of Muskegon
Taxable, Assessed and Equalized and Estimated Actual Valuation of Property
Last Ten Fiscal Years
Taxable Valuation of Property
Ad Valorem Assessment Roll Industrial and Commercial Facilities Assessment Roll
Total Industrial Industrial Commercial Total Taxable Value
Real Personal Total Real Personal Real Total Taxable Total As a Percent
Year Residential Agriculture Commercial Industrial Property Property Ad Valorem Property Property Property IFT and CFT Valuation City Actual
2012 $ 312,930,252 $ - $ 134,635,427 $ 81,575,476 $ 529,141,155 $ 91,750,891 $ 620,892,046 $ 3,587,223 $ 6,161,900 $ - $ 9,749,123 $ 630,641,169 12.0789 96.40%
2013 310,252,865 - 118,856,014 76,331,458 505,440,337 91,730,093 597,170,430 6,677,737 7,472,900 - 14,150,637 611,321,067 12.0865 96.97%
2014 312,031,296 - 115,070,943 61,196,955 488,299,194 91,020,452 579,319,646 3,874,303 6,512,600 - 10,386,903 589,706,549 13.0875 96.26%
2015 314,055,244 - 116,448,947 54,898,389 485,402,580 95,098,912 580,501,492 3,149,352 7,772,000 - 10,921,352 591,422,844 13.0869 95.28%
2016 314,299,363 - 114,855,236 50,232,295 479,386,894 74,155,243 553,542,137 3,628,098 5,690,600 - 9,318,698 562,860,835 13.0905 93.60%
2017 319,768,625 - 113,497,599 50,381,292 483,647,516 67,760,237 551,407,753 3,692,357 4,627,400 - 8,319,757 559,727,510 13.0908 91.38%
2018 331,347,976 - 113,370,852 48,272,032 492,990,860 65,728,440 558,719,300 3,990,263 3,739,800 - 7,730,063 566,449,363 13.0899 89.69%
2019 346,233,797 - 120,836,165 48,156,907 515,226,869 61,993,800 577,220,669 6,561,033 3,146,800 - 9,707,833 586,928,502 13.0865 87.80%
2020 362,796,641 - 125,649,743 48,231,815 536,678,199 67,398,400 604,076,599 14,874,922 2,612,700 - 17,487,622 621,564,221 13.0865 83.40%
2021 411,808,285 143,992,198 53,700,376 609,500,859 73,874,500 683,375,359 15,756,956 1,312,300 17,069,256 700,444,615 12.9722 93.98%
Assessed and Equalized Valuation of Property
Ad Valorem Assessment Roll Industrial and Commercial Facilities Assessment Roll
Total Industrial Industrial Commercial Total Estimated
Real Personal Total Real Personal Real Total Assessed Actual
Year Residential Agriculture Commercial Industrial Property Property Ad Valorem Property Property Property IFT and CFT Valuation Value
140
2012 $ 327,226,000 $ - $ 141,238,834 $ 84,084,000 $ 552,548,834 $ 91,740,800 $ 644,289,634 $ 3,719,300 $ 6,161,900 $ - $ 9,881,200 $ 654,170,834 $ 1,308,341,668
2013 321,604,220 - 123,831,400 79,037,400 524,473,020 91,720,300 616,193,320 6,766,000 7,472,900 - 14,238,900 630,432,220 1,260,864,440
2014 326,690,900 - 120,803,800 63,704,200 511,198,900 91,004,400 602,203,300 3,877,300 6,512,600 - 10,389,900 612,593,200 1,225,186,400
2015 335,445,400 - 122,235,800 57,024,100 514,705,300 95,084,900 609,790,200 3,149,800 7,772,000 - 10,921,800 620,712,000 1,241,424,000
2016 342,767,600 - 122,574,300 52,323,600 517,665,500 74,140,100 591,805,600 3,851,200 5,690,600 - 9,541,800 601,347,400 1,202,694,800
2017 363,318,800 - 120,587,210 52,278,900 536,184,910 67,745,200 603,930,110 3,957,900 4,639,600 - 8,597,500 612,527,610 1,225,055,220
2018 382,994,200 - 124,938,600 50,130,470 558,063,270 65,713,100 623,776,370 4,017,100 3,739,800 - 7,756,900 631,533,270 1,263,066,540
2019 409,745,000 - 135,884,102 51,070,400 596,699,502 61,981,500 658,681,002 6,649,100 3,146,800 - 9,795,900 668,476,902 1,336,953,804
2020 461,026,400 - 146,950,200 52,388,900 660,365,500 67,388,800 727,754,300 14,929,600 2,612,700 - 17,542,300 745,296,600 1,490,593,200
2021 580,236,600 186,202,700 58,746,100 825,185,400 73,866,200 899,051,600 16,273,300 1,312,300 17,585,600 916,637,200 1,833,274,400
Property is assessed at 50% of true cash value. The assessed and equalized valuation of taxable property is determined as of December 31st of each year and is the basis upon which taxes are levied during the succeeding fiscal year. The passage of Proposal A in May, 1994 altered
how tax values are determined. Beginning in the 1995-1996 fiscal year, property taxes are based on taxable value instead of state equalized value. Proposal A also capped taxable value of each parcel of property, adjusted for additions and losses, at the previous year's rate of inflation
or 5% whichever is less, until the property is sold or transferred. When ownership of a parcel of property is transferred, the taxable value becomes 50% of true cash value, or the state equalized valuation. The Industrial and Commercial Facilities Tax Acts permit certain property to be
taxed at one-half the tax rate for a period up to twelve years.
171
City of Muskegon
Principal Property Taxpayers
Current Year and Ten Years Ago
6/30/2022 6/30/2013
Percent of Percent of
Taxable Total Taxable Taxable Total Taxable
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Consumers Energy $ 19,074,117 1 2.86% $ 46,472,581 1 7.4%
DTE Gas Company 15,309,976 2 2.30% 6,918,200 2 1.1%
James Street Capital Holdings 10,214,100 3 1.53%
Muskegon SC Holdings LLC 6,147,883 4 0.92% 4,240,100 6 0.7%
Michigan Electric Transmission 5,871,800 5 0.88% 0.0%
Glen Oaks Apartments LLC 3,607,163 6 0.54% 3,914,200 7 0.6%
Mercy Health Partners 3,246,556 7 0.49%
141
Core Sherman LLC 3,160,129 8 0.47%
Verplank Port Facility LLC 3,035,700 9 0.46%
Hinman Lake LLC 2,902,866 10 0.44%
Adac Plastics 6,079,926 5 1.0%
Esco Company 6,798,181 3 1.1%
GE Aviation 6,123,500 4 1.0%
Coles Quality Foods 3,491,200 9 0.6%
Lorin Industries 3,854,731 8 0.6%
P&G Holdings NY LLC 3,462,180 10 0.5%
Total - 10 Largest 72,570,290 10.90% 91,354,799 14.5%
Total - All Other 593,289,262 89.10% 539,286,370 85.5%
$ 665,859,552 100.0% $ 630,641,169 100.0%
Source: Muskegon County Equalization Department; City of Muskegon Treasurer's Office
172
City of Muskegon
Property Tax Rates - Direct and Overlapping Government Units
Property Tax Rates Per $1,000 Taxable Valuation
Last Ten Fiscal Years
City-Wide Rates
Total Library Library
Year Operating Promotion Sanitation City District Debt
2012 9.5000 0.0789 2.5000 12.0789 2.4000 -
2013 9.5000 0.0865 2.5000 12.0865 2.4000 -
2014 10.0000 0.0875 3.0000 13.0875 2.4000 -
2015 10.0000 0.0869 3.0000 13.0869 2.4000 0.5611
2016 10.0000 0.0905 3.0000 13.0905 2.4000 0.4962
2017 10.0000 0.0908 3.0000 13.0908 2.4000 0.4999
2018 10.0000 0.0899 3.0000 13.0899 2.4000 0.4866
2019 10.0000 0.0865 3.0000 13.0865 2.4000 0.4522
2020 9.9930 0.0824 2.9979 13.0733 2.3997 0.4532
2021 9.9180 0.0788 2.9754 12.9722 2.3821 0.4351
Overlapping - County-Wide Rates
Muskegon Intermediate Special Vocational Community MAISD Community
Year County School Education Education College Gen Ed College Debt
2012 6.6957 0.4597 2.2987 0.9996 2.2037 - -
2013 6.6957 0.4597 2.2987 0.9996 2.2037 - -
2014 6.6557 0.4597 2.2987 0.9996 2.2037 1.0000 0.3400
2015 6.6357 0.4597 2.2987 0.9996 2.2037 1.0000 0.3400
2016 6.8957 0.4597 2.2987 0.9996 2.2037 1.0000 0.3400
2017 6.8957 0.4597 2.2987 0.9996 2.2037 1.0000 0.3400
2018 6.8957 0.4597 2.2987 0.9996 2.2037 1.0000 0.3400
2019 6.8957 0.4597 2.2987 0.9996 2.2037 1.0000 0.3400
2020 6.8947 0.4593 2.2968 0.9988 2.2034 0.9992 0.3400
2021 6.8490 0.4562 2.2815 0.9922 2.1888 0.9926 0.3400
Overlapping - School District Grand Total
State Non-
Year Operating Debt Total Education Homestead Homestead
2012 18.0000 7.1000 25.1000 6.0000 40.2363 58.2363
2013 18.0000 7.1000 25.1000 6.0000 40.2439 58.2439
2014 18.0000 7.6000 25.6000 6.0000 43.0449 61.0449
2015 18.0000 6.8000 24.8000 6.0000 42.7854 60.7854
2016 18.0000 6.3500 24.3500 6.0000 42.5341 60.5341
2017 18.0000 7.6800 25.6800 6.0000 43.8681 61.8681
2018 18.0000 8.3600 26.3600 6.0000 44.5339 62.5339
2019 18.0000 8.3600 26.3600 6.0000 44.4961 62.4961
2020 17.9838 8.3581 26.3419 6.0000 44.4765 62.4603
2021 17.7518 9.3467 27.0985 6.0000 45.2364 62.9882
SOURCE: City of Muskegon Treasurer' Office
142
173
City of Muskegon
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Charge backs
Total Current Percent Delinquent Total Tax On Uncollected Outstanding Outstanding Percent of
Fiscal Tax Tax Of Levy Tax Total Tax Collections Delinquent Delinquent Delinquent Delinquent
Year Levy Collections Collected Collections Collections as % of Levy Taxes Personal Specific Taxes to Levy
2012 $ 7,872,541 $ 6,882,534 87.4% $ 915,950 $ 7,798,484 99.1% $ 27,163 $ 68,945 $ 5,113 1.29%
2013 7,668,166 6,703,147 87.4% 912,362 7,615,509 99.3% 102,713 45,361 7,296 2.03%
2014 8,032,955 7,069,804 88.0% 917,806 7,987,610 99.4% 57,680 41,074 2,788 1.26%
2015 8,132,782 7,247,701 89.1% 848,266 8,095,967 99.5% 62,345 33,407 1,862 1.20%
2016 7,719,829 6,828,816 88.5% 853,639 7,682,455 99.5% 42,063 23,671 1,365 0.87%
2017 7,633,290 6,776,856 88.8% 795,164 7,572,020 99.2% 51,584 43,665 11,728 1.40%
2018 9,545,232 8,631,502 90.4% 839,208 9,470,710 99.2% - 53,873 13,529 0.71%
2019 9,737,757 8,873,258 91.1% 821,601 9,694,859 99.6% - 20,987 15,355 0.37%
2020 9,943,231 9,114,832 91.7% 749,195 9,864,027 99.2% - 35,111 31,560 0.67%
2021 9,987,802 9,121,784 91.3% 637,083 9,758,867 97.7% - 19,026 41,200 0.60%
143
SOURCE: City of Muskegon Treasurer' Office
174
City of Muskegon
TOTAL INCOME TAX COLLECTED AND NUMBER OF RETURNS FILED - GRAPHICAL
Last Ten Fiscal Years
Income Tax 2012 ‐ 2022
$12,000,000
$10,000,000
INCOME TAX $
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$‐
2012 ‐ 2013 2013 ‐ 2014 2014 ‐ 2015 2015 ‐ 2016 2016 ‐ 2017 2017 ‐ 2018 2018 ‐ 2019 2019‐20 2020‐21 2021‐22
Resident $2,692,211 $2,892,906 $3,070,581 $2,925,036 $3,284,777 $3,278,759 $3,457,902 $3,655,458 $3,531,695 $3,771,609
Non‐Resident 3,290,480 3,535,773 3,752,932 3,575,045 4,014,691 4,007,372 4,226,325 4,467,781 4,316,516 4,609,744
Other 1,523,781 1,499,133 1,451,153 1,651,821 1,311,374 1,472,517 1,007,446 1,014,475 1,408,615 1,621,270
Total Income Tax $7,506,472 $7,927,812 $8,274,666 $8,151,902 $8,610,842 $8,758,648 $8,691,673 $9,137,714 $9,256,826 $10,002,623
144
FISCAL YEAR
NUMBER OF RETURNS 2012 ‐ 2022
20,000
18,000
1,750
1,750 1,750 1,750 1,750
1,650 1,650
16,000
1,650
14,000 1,650
1,650
12,000
RETURNS
11,009 10,631 10,713 10,578
10,997 10,278 10,256
10,000 Other
9,426
8,524
8,301 Non‐Resident
8,000
Resident
6,000
4,000
5,110 5,463 5,458 5,337 5,464 5,352 5,493
4,852 4,302 4,732
2,000
‐
2012 ‐ 2013 2013 ‐ 2014 2014 ‐ 2015 2015 ‐ 2016 2016 ‐ 2017 2017‐ 2018 2018‐19 2019‐20 2020‐21 2021‐22
FISCAL YEAR
175
City of Muskegon
TOTAL INCOME TAX COLLECTED AND NUMBER OF RETURNS FILED - DATA
Last Ten Fiscal Years
Income Tax 2012 ‐ 2022
Year 2012 ‐ 2013 2013 ‐ 2014 2014 ‐ 2015 2015 ‐ 2016 2016 ‐ 2017 2017 ‐ 2018 2018 ‐ 2019 2019‐20 2020‐21 2021‐22
Resident $ 2,692,211 $ 2,892,906 $ 3,070,581 $ 2,925,036 $ 3,284,777 $ 3,278,759 $ 3,457,902 $ 3,655,458 $ 3,531,695 $ 3,771,609
Non‐Resident 3,290,480 3,535,773 3,752,932 3,575,045 4,014,691 4,007,372 4,226,325 4,467,781 4,316,516 4,609,744
Other 1,523,781 1,499,133 1,451,153 1,651,821 1,311,374 1,472,517 1,007,446 1,014,475 1,408,615 1,621,270
Total Income Tax $ 7,506,472 $ 7,927,812 $ 8,274,666 $ 8,151,902 $ 8,610,842 $ 8,758,648 $ 8,691,673 $ 9,137,714 $ 9,256,826 $ 10,002,623
Number of Returns 2012‐2022
Year 2012 ‐ 2013 2013 ‐ 2014 2014 ‐ 2015 2015 ‐ 2016 2016 ‐ 2017 2017‐ 2018 2018‐19 2019‐20 2020‐21 2021‐22
Resident 5,110 5,463 5,458 5,337 5,464 5,352 5,493 4,852 4,302 4,732
Non‐Resident 10,997 11,009 10,631 10,713 10,578 10,278 10,256 9,426 8,301 8,524
Other 1,750 1,750 1,750 1,750 1,750 1,650 1,650 1,650 1,650 1,650
145
Total Returns 17,857 18,222 17,839 17,800 17,792 17,280 17,399 15,928 14,253 14,906
176
City of Muskegon
RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
General
Obligation Installment Total
Limited Tax Purchase Governmental Revenue Total Business- Total Primary Per
Year Bonds Agreements State Loans Activities Bonds State Loans Type Activities Government Capita
2013 $ 7,350,000 $ - $ 130,042 $ 7,480,042 $ 4,205,000 $ 9,685,000 $ 13,890,000 $ 21,370,042 $ 577
2014 6,954,535 - 112,550 7,067,085 3,630,728 9,030,000 12,660,728 19,727,813 533
2015 6,555,436 - 94,708 6,650,144 2,949,368 8,360,000 11,309,368 17,959,512 483
2016 6,243,903 - 76,509 6,320,412 2,246,962 7,675,000 9,921,962 16,242,374 436
2017 5,940,903 - 57,946 5,998,849 1,523,661 6,980,000 8,503,661 14,502,510 378
146
2018 5,633,903 - 39,012 5,672,915 774,614 6,270,000 7,044,614 12,717,529 331
2019 5,322,903 - 19,699 5,342,602 - 5,545,000 5,545,000 10,887,602 284
2020 24,059,753 2,123,804 - 26,183,557 - 6,607,956 6,607,956 32,791,513 854
2021 30,496,677 - - 30,496,677 - 9,056,453 9,056,453 39,553,130 1,051
2022 29,229,777 1,173,411 - 30,403,188 - 14,374,715 14,374,715 44,777,903 1,192
NOTE: None of the debt issued by the City is payable through the levy of property tax millages.
SOURCE: The information in these schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the relevant year.
177
City of Muskegon
DIRECT AND OVERLAPPING DEBT
June 30, 2022
Total Debt Debt Supported by City
Name of Governmental Unit Outstanding Self Supporting General Revenues
Direct Debt
City of Muskegon:
Revenue Bonds $ 14,374,715 $ 14,374,715 $ -
Capital Improvement Bonds 29,229,777 - 29,229,777
Installment Purchase Agreements 1,173,411 - 1,173,411
Component Unit Debt:
Local Development Finance Authority 1,096,547 1,096,547 -
Total City Direct Debt $ 45,874,450 $ 15,471,262 $ 30,403,188
City Share as
Gross Percent of Gross Net
Overlapping Debt
Muskegon School District $ 81,265,000 95.82% $ 77,868,123
Orchard View School District 35,479,418 16.93% 6,006,665
Reeth's Puffer School District 60,921,723 0.95% 578,756
Hackley Public Library 1,775,000 95.82% 1,700,805
Muskegon County 100,828,458 12.98% 13,087,534
Muskegon Community College 28,360,000 12.98% 3,681,128
Total Overlapping Debt $ 308,629,599 102,923,012
Total City Direct and Overlapping Debt $ 133,326,200
NOTE: None of the debt issued by the City is payable through the levy of property tax millages
The percentage of overlapping debt is estimated using taxable property values. Applicable percentages were estimated by
determining the portion of the City's taxable value that is within each overlapping government unit's boundaries. Details
regarding the City's outstanding debt can be found in the notes to the financial statements.
SOURCE: Municipal Advisory Council of Michigan and City of Muskegon Finance Department. The information in these
schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the relevant year.
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178
City of Muskegon
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Debt Limit $ 68,555,700 $ 61,706,477 $ 61,510,980 $ 60,962,090 $ 61,333,841 $ 64,124,907 $ 101,083,635 $ 108,732,428 $ 128,830,259 $ 144,430,377
Total net debt applicable to limit 13,655,042 12,847,550 11,969,708 11,313,794 10,290,785 9,240,855 8,510,021 27,943,934 31,848,925 31,499,735
Legal debt margin $ 54,900,658 $ 48,858,927 $ 49,541,272 $ 49,648,296 $ 51,043,056 $ 54,884,052 $ 92,573,614 $ 80,788,494 $ 96,981,334 $ 112,930,642
Total net debt applicable to the limit as 19.92% 20.82% 19.46% 18.56% 16.78% 14.41% 8.42% 25.70% 24.72% 21.81%
a percentage of debt limit
Legal Debt Margin Calculation for 2022:
Assessed Valuation: $ 1,444,303,769
Legal Debt Limit (10% ) 144,430,377
Total Indebtedness: $ 45,874,450
Debt not Subject to Limitation:
Paid by Special Assessment -
Revenue Bonds (14,374,715)
Debt Subject to Limitation 31,499,735
148
Legal Debt Margin $ 112,930,642
SOURCE: The information in these schedules
(unless otherwise noted) is derived from the
comprehensive annual financial reports for the
relevant year.
179
City of Muskegon
REVENUE BOND COVERAGE
Last Ten Fiscal Years
Water Supply System
Direct Net Revenue
Fiscal Gross Operating Available For Debt Service Requirements
Year Revenue (a) Expenses (b) Debt Service Principal Interest Total Coverage
2013 $ 5,907,784 $ 3,729,276 $ 2,178,508 $ 1,250,000 $ 384,694 $ 1,634,694 1.33
2014 6,109,144 3,511,477 2,597,667 1,295,000 352,634 1,647,634 1.58
2015 6,388,474 3,774,508 2,613,966 1,330,000 320,857 1,650,857 1.58
2016 7,498,376 4,460,076 3,038,300 1,370,000 283,360 1,653,360 1.84
2017 7,449,646 4,997,912 2,451,734 1,405,000 246,434 1,651,434 1.48
2018 7,507,323 4,949,807 2,557,516 1,450,000 203,106 1,653,106 1.55
2019 8,472,413 5,672,522 2,799,891 1,495,000 158,260 1,653,260 1.69
2020 8,417,771 6,374,033 2,043,738 745,000 109,916 854,916 2.39
2021 8,762,308 6,481,996 2,280,312 760,000 107,860 867,860 2.63
2022 9,026,192 7,255,731 1,770,461 994,750 146,568 1,141,318 1.55
Sewage Disposal System
Direct Net Revenue
Fiscal Gross Operating Available For Debt Service Requirements
Year Revenue (a) Expenses (b) Debt Service Principal Interest Total Coverage
2013 No Direct System Indebtedness
2014 No Direct System Indebtedness
2015 No Direct System Indebtedness
2016 No Direct System Indebtedness
2017 No Direct System Indebtedness
2018 No Direct System Indebtedness
2019 No Direct System Indebtedness
2020 $ 8,399,047 $ 9,307,397 $ (908,350) $ - $ - $ - $ -
2021 9,298,294 7,481,042 1,817,252 - 3,151 3,151 576.72
2022 10,303,063 7,502,182 2,800,881 272,000 84,439 356,439 7.86
For years in which "revenue bond coverage" is less than 1.00, the shortfall was made up either by use of net position or by transfer in.
(a) "Gross Revenue" equals total operating revenues plus interest income.
(b) "Direct Operating Expenses" equal total operating expenses net of depreciation expense.
SOURCE: The information in these schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the
relevant year.
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180
City of Muskegon
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal Personal Per Capita Median Public School Building Permits
Year Population Income Income Age Enrollment Number Value Unemployment
2013 37,046 $ 747,644,037 $ 20,182 34.1 4,367 826 $ 24,613,938 12.0%
2014 37,213 769,789,707 20,686 34.1 4,808 1,108 54,065,115 9.6%
2015 37,213 789,034,450 21,203 35.8 4,387 1,102 46,541,966 10.3%
2016 37,213 808,760,311 21,733 35.8 4,206 1,112 58,924,856 8.3%
2017 38,349 854,285,543 22,277 35.8 3,985 1,075 78,271,395 4.8%
2018 38,401 876,830,025 22,834 35.4 3,732 1,202 171,523,877 4.1%
2019 38,401 898,750,775 23,404 35.4 3,589 1,295 94,667,004 4.2%
2020 38,401 921,219,545 23,989 36.3 3,625 1,233 92,319,998 17.7%
2021 37,633 925,365,524 24,589 35.8 3,472 1,266 53,810,437 5.0%
2022 37,552 946,458,144 25,204 34.9 3,478 1,051 65,634,790 10.3%
150
SOURCE: US Census Bureau, Muskegon Area Intermediate School Distrct (MAISD), City of Muskegon Inspections Department, Michigan Department of Technology,
Management, & Budget
181
City of Muskegon
PRINCIPAL EMPLOYERS
Current Year and Ten Years Ago
2022 2013
Percentage Percentage
of total of total
City City
Employer Employees Rank employment Employees Rank employment
Mercy General Health Partners 4,003 1 32.72% 3,657 1 24.7%
ADAC Automotive 1,168 2 9.55% 750 5 5.1%
County of Muskegon 990 3 8.09% 1,028 2 7.0%
G.E. Aviation 624 4 5.10% 644 6 4.4%
Port City Group Companies 421 5 3.44% 419 7 2.8%
KL Outdoors 375 6 3.07%
Muskegon Public School District 360 7 2.94% 941 3 6.4%
151
Muskegon Area Intermediate School District 355 8 2.90%
Knoll Inc 270 9 2.21% 403 8 2.7%
Muskegon Community College 214 10 1.75% 211 10 1.4%
State of Michigan 772 4 5.2%
Baker College
SAF Holland USA 330 9 2.2%
SOURCE: City of Muskegon; Muskegon Area First; Michigan Department of Energy, Labor & Economic Growth
182
City of Muskegon
BUDGETED FULL-TIME CITY GOVERNMENT POSITIONS BY DEPARTMENT
Last Ten Fiscal Years
Department 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Administration 0.40 0.40 - - - - - - - -
Affirmative Action 1.10 1.10 1.30 1.30 1.46 0.40 1.00 1.00 1.00 1.00
Cemetaries 1.25 1.25 1.25 1.25 1.25 1.25 1.25 2.25 2.25 2.25
City Clerk & Elections 3.00 3.00 3.00 3.00 3.54 3.80 3.80 4.80 5.80 5.80
City Commission 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
City Hall Maintenance 0.55 0.55 0.55 0.55 0.55 0.55 0.55 1.05 1.00 1.00
City Manager's Office 2.25 2.25 2.05 2.05 1.75 2.75 2.75 2.75 3.30 3.30
City Treasurer's Office 5.00 4.50 5.50 5.50 5.50 5.50 5.50 5.50 5.30 5.30
Environmental Services 5.00 5.00 2.00 2.00 2.00 2.00 - -
Farmers Market 0.05 0.05 0.05 0.05 - 0.20 1.20 1.20 0.70 0.70
Finance Administration 2.00 2.00 3.00 3.00 3.00 3.60 3.00 3.45 3.70 3.70
Fire 28.00 28.83 32.00 35.00 35.00 35.00 26.00 29.00 29.50 29.50
Fire Safety Inspections 6.00 0.83 - - - - - -
Income Tax Administration 5.00 4.50 3.50 3.50 3.50 3.50 3.50 3.50 3.70 3.70
Information Systems 3.00 3.00 3.00 3.00 3.00 3.50 3.50 3.50 3.50 3.50
Parks 6.05 6.00 6.00 6.00 7.05 7.05 10.05 10.05 10.05 10.05
Planning, Zoning & Economic Development 3.00 3.00 3.40 3.40 3.45 3.45 5.45 6.00 7.00 7.00
Police 88.00 87.34 88.00 88.00 88.00 88.00 89.00 89.00 91.00 91.00
152
Sanitation 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Senior Transit 0.05 0.05 - - - - - -
MVH-Major Streets 10.70 10.70 10.70 10.70 10.70 10.70 12.20 12.20 13.20 13.20
MVH-Local Streets 6.70 6.70 6.70 6.70 6.70 6.70 7.20 7.20 7.20 7.20
Community Development 4.00 4.00 4.00 4.00 4.00 3.55 3.55 4.30 5.30 5.30
Home Program - - - - - - - - -
Lead Program - - - - - - - - -
Sewer Maintenance 9.75 9.80 9.80 9.80 9.80 9.80 9.80 10.80 10.95 10.95
Water Filtration 10.00 10.00 10.00 10.00 10.00 10.00 10.00 11.00 12.15 12.15
Water Maintenance 11.75 11.75 11.75 11.75 11.75 11.75 11.75 12.75 14.90 14.90
Hartshorn Marina Fund 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Mercy Health Arena - - - - - - - 3.00 6.00 6.00
Public Service Building 8.45 8.45 8.50 8.50 8.50 8.50 8.50 8.75 8.75 8.75
Engineering 4.95 4.95 4.95 4.95 4.95 4.95 5.95 5.20 4.25 4.25
Equipment 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25
233.00 227.00 228.00 231.00 232.45 233.50 232.50 245.25 257.50 257.50
SOURCE: City of Muskegon Finance Department
183
City of Muskegon
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Administrative Services
Elections
Number of registered voters 26,098 26,025 24,014 24,005 24,612 26,136 25,182 28,127 27,889 28,004
Number of votes cast:
Last general election 13,487 3,029 7,763 2,547 13,179 15,271 11,407 3,105 15,156 15,519
Last city election 2,131 3,029 7,763 2,547 13,179 2,254 1,938 3,105 2,968 4,459
Percentage of registered voters voting:
Last general election 52% 12% 32% 11% 54% 58% 45% 11% 54% 55%
Last city election 8% 12% 32% 11% 54% 9% 8% 11% 12% 16%
Financial Services
Property Tax Bills 15,291 15,211 14,528 14,611 14,243 14,229 14,180 15,090 15,117 15,103
Income Tax Returns 17,857 18,222 17,839 17,800 17,792 17,280 17,399 15,928 14,253 14,906
Paper Check Issued to Vendors 1,677 1,404 1,527 1,608 1,675 1,782 1,863 1,946 1,676 1,853
Electronic Payments to Vendors 1,251 1,579 1,471 1,849 1,998 2,104 2,307 2,494 2,465 3,654
153
Public Safety
Fire Protection
Number of firefighter and officer positions 41 38 35 35 35 23 29 26 29 25
Number of emergency calls 4,563 4,354 4,881 4,938 4,895 4,948 5,106 5,147 4,203 6,018
Police Protection
Number of sworn officer positions 79 76 76 76 75 79 80 80 89 80
Part I (Major) Crimes 2,647 2,240 2,107 1,989 2,816 2,357 1,728 1,621 1,442 808
Public Works
Refuse Collected (Tons per Year) 9,958 10,217 10,512 10,994 11,009 10,801 10,753 11,534 12,289 10,326
Recyclables Collected (Tons per Year) - - - - - - - 160 224 341
Water & Sewer
Number of consumers 13,144 13,086 13,223 13,307 13,248 13,104 13,343 13,422 12,660 12,821
Average daily water consumption (GPD) 7,651,000 7,666,000 8,293,570 11,027,945 10,947,233 9,559,304 10,867,590 10,674,712 7,570,000 10,789,900
Water main breaks repaired 11 30 15 16 12 15 11 17 13 15
Sewer flows (Millions Gallons per Year) 1,777 1,833 2,013 1,794 1,815 1,832 2,048 2,138 1,596 1,462
Sewer Service Calls 508 532 501 521 462 451 443 475 541 426
SOURCE: City of Muskegon Departments
184
City of Muskegon
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Safety
Fire Protection
Number of stations 3 3 3 3 3 3 3 3 3 3
Police Protection
Number of stations 1 1 1 1 1 1 1 1 1 1
Highways, Streets and Bridges
Miles of Streets 196.95 196.95 196.95 196.95 196.95 196.95 197.19 187.34 187.34 187.28
Number of streetlights 2,838 2,838 2,838 2,900 2,984 2,967 2,930 2,995 2,995 2,995
Culture and Recreation
Number of parks (acres) 701 701 701 701 701 701 701 701 701 701
Lake Michigan beaches (acres) 119 119 119 119 119 119 119 119 119 119
Hockey/Entertainment Arena 1 1 1 1 1 1 1 1 2 2
Sewer
154
Sanitary sewers (miles) 177.04 177.04 177.04 177.04 177.04 177.04 177.04 177.04 176.69 166.63
Storm sewers (miles) 184.35 184.25 184.35 184.35 184.35 184.35 184.35 184.35 147.58 148.38
Water
Water mains (miles) 195.95 195.95 195.95 195.95 195.95 195.95 195.27 195.27 213.92 214.70
SOURCE: City of Muskegon Departments
185
SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS
155
186
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
City Commission
City of Muskegon
Muskegon, Michigan
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of City of Muskegon as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise City of Muskegon’s basic financial statements, and have issued
our report thereon dated December 21, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Muskegon’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of City of Muskegon’s internal control. Accordingly, we do not
express an opinion on the effectiveness of City of Muskegon’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies
may exist that were not identified.
Grand Haven | Grand Rapids | Hart | Muskegon
www.brickleydelong.com
156
187
BRICKLEY DELONG
City Commission
City of Muskegon
Page 2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Muskegon’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
City of Muskegon’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on City of Muskegon’s
response to the findings identified in our audit and described in the accompanying Schedule of Findings and
Questioned Costs. City of Muskegon’s response was not subjected to the other auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Muskegon, Michigan
December 21, 2022
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM
GUIDANCE
City Commission
City of Muskegon
Muskegon, Michigan
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Muskegon’s compliance with the types of compliance requirements identified as subject
to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City of
Muskegon’s major federal programs for the year ended June 30, 2022. City of Muskegon’s major federal
programs are identified in the Summary of Auditor’s Results section of the accompanying Schedule of Findings
and Questioned Costs.
In our opinion, City of Muskegon complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended June
30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America (GAAS); the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those
standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section to our report.
We are required to be independent of City of Muskegon and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of City of Muskegon’s compliance with the
compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grant agreements applicable to City of Muskegon’s
federal programs.
Grand Haven | Grand Rapids | Hart | Muskegon
www.brickleydelong.com
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189
BRICKLEY DELONG
City Commission
City of Muskegon
Page 2
Report on Compliance for Each Major Federal Program—Continued
Auditor’s Responsibility for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of
Muskegon’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government
Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The
risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Noncompliance with the compliance requirements referred to above is considered material, if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable
user of the report on compliance about City of Muskegon’s compliance with the requirements of each major
federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance,
we
exercise professional judgment and maintain professional skepticism throughout the audit.
identity and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding City of Muskegon’s compliance with the compliance requirements referred to above
and performing such other procedures as we considered necessary in the circumstances.
obtain an understanding of City of Muskegon’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of City of Muskegon’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
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BRICKLEY DELONG
City Commission
City of Muskegon
Page 3
Report on Internal Control Over Compliance—Continued
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitation, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Muskegon, Michigan
December 21, 2022
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191
City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30, 2022
Accrued Cash or Accrued
Assistance Program or (Unearned) Adjustments Payments In- Amount of (Unearned) Passed
Federal Grantor/Pass-Through Grantor/ Listing Award Revenue and Kind Received Grant Revenue Through to
Program or Cluster Title/Identifying Number Number Amount July 1, 2021 Transfers (Cash Basis) Expenditures June 30, 2022 Subrecipents
U.S. Department of Housing and Urban Development
Direct programs
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218
B-14-MC-26-0026 $ 897,025 $ 17,403 $ - $ 17,403 $ - $ - $ -
B-16-MC-26-0026 886,662 - - 118,732 118,732 - -
B-17-MC-26-0026 871,542 - - 3,973 13,922 9,949 -
B-18-MC-26-0026 937,658 - - - 71,725 71,725 -
B-19-MC-26-0026 973,451 8,404 - 201,592 213,897 20,709 -
B-20-MC-26-0026 994,698 54,405 - 82,924 43,563 15,044 -
COVID-19 - B-20-MW-26-0026 794,564 27,855 - 533,440 541,595 36,010 -
B-21-MC-26-0026 988,508 - - 723,851 744,984 21,133 100,000
Program Income 73,217 - - 73,217 73,217 - -
Total CDBG - Entitlement Grants Cluster 7,417,325 108,067 - 1,755,132 1,821,635 174,570 100,000
161
Home Investment Partnerships Program 14.239
M-17-MC-26-0215 249,537 - - 10,902 10,902 - -
M-18-MC-26-0215 327,681 - - 49,152 49,152 - -
M-19-MC-26-0215 334,818 - - 235,951 245,770 9,819 -
M-20-MC-26-0215 343,362 1,781 - 214,690 218,493 5,584 -
M-21-MC-26-0215 336,456 - - 13,728 56,038 42,310 -
Program Income 53,040 - - 53,040 53,040 - -
Total Home Investment Partnerships Program 1,644,894 1,781 - 577,463 633,395 57,713 -
Healthy Homes Production Program 14.913
MIHHP0083-22 1,500,000 - - - 2,015 2,015 -
Total U.S. Department of Housing and Urban Development 10,562,219 109,848 - 2,332,595 2,457,045 234,298 100,000
192
City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
For the year ended June 30, 2022
Accrued Cash or Accrued
Assistance Program or (Unearned) Adjustments Payments In- Amount of (Unearned) Passed
Federal Grantor/Pass-Through Grantor/ Listing Award Revenue and Kind Received Grant Revenue Through to
Program or Cluster Title/Identifying Number Number Amount July 1, 2021 Transfers (Cash Basis) Expenditures June 30, 2022 Subrecipents
U.S. Department of Justice
Direct programs
Bulletproof Vest Partnership Program 16.607
2020 Grant $ 6,615 $ - $ - $ - $ 6,615 $ 6,615 $ -
Edward Byrne Memorial Justice Assistance Grant Program 16.738
2020-DJ-BX-0470 32,996 17,866 - 27,751 9,885 - 9,885
15PBJA-21-GG-01586-JAGX 40,467 - - 21,906 21,906 - -
73,463 17,866 - 49,657 31,791 - 9,885
Criminal and Juvenile Justice and Mental Health Collaboration Program 16.745
2019-MO-BX-0006 100,000 4,837 - 63,909 59,072 - -
Total direct programs 180,078 22,703 - 113,566 97,478 6,615 9,885
Passed through Michigan Department of Health and Human Services
Violence Against Women Formula Grants 16.588
162
E20211656-002 177,934 9,965 - 26,844 16,879 - -
E20221719-001 282,512 - - 117,173 132,952 15,779 -
460,446 9,965 - 144,017 149,831 15,779 -
Passed through Battle Creek Community Foundation
Project Safe Neighborhoods 16.609
2018 Project Safe Neighborhoods Grant 6,420 - - 6,420 6,420 - -
2019 Project Safe Neighborhoods Grant 21,905 - - 21,905 21,905 - -
28,325 - - 28,325 28,325 - -
Passed through Ottawa County
Edward Byrne Memorial Justice Assistance Grant Program 16.738
2020-MU-BX-0011 16,284 - - 16,284 16,284 - -
Total U.S. Department of Justice 685,133 32,668 - 302,192 291,918 22,394 9,885
U.S. Department of Treasury
Passed through Michigan Department of Treasury
Coronavirus State and Local Fiscal Recovery Funds 21.027
COVID-19 - American Rescue Plan Act 22,881,894 - (11,440,947) 11,440,947 9,234,029 (13,647,865) 3,000,000
U.S. Small Business Administration
Direct programs
Shuttered Venue Operators Grant Program 59.075
SBAHQ21SV010622 625,498 - - 625,498 625,498 - -
193
City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
For the year ended June 30, 2022
Accrued Cash or Accrued
Assistance Program or (Unearned) Adjustments Payments In- Amount of (Unearned) Passed
Federal Grantor/Pass-Through Grantor/ Listing Award Revenue and Kind Received Grant Revenue Through to
Program or Cluster Title/Identifying Number Number Amount July 1, 2021 Transfers (Cash Basis) Expenditures June 30, 2022 Subrecipents
Environmental Protection Agency
Passed through Department of Environment, Great Lakes, and Energy
Clean Water State Revolving Fund Cluster
Capitalization Grants for Clean Water State Revolving Funds 66.458
5675-01 $ 11,500,000 $ 497,694 $ - $ 924,976 $ 427,282 $ - $ -
5679-01 4,715,000 232,190 - 3,297,075 3,114,986 50,101 -
16,215,000 729,884 - 4,222,051 3,542,268 50,101 -
Drinking Water State Revolving Fund Cluster
Capitalization Grants for Drinking Water State Revolving Funds 66.468
7446-01 4,225,000 - - 124,394 124,394 - -
Total Environmental Protection Agency 20,440,000 729,884 - 4,346,445 3,666,662 50,101 -
U.S. Department of Health and Human Services
Passed through Michigan Department of Health and Human Services
163
Children's Health Insurance Program 93.767
E20211485-002 943,785 56,290 - 125,354 69,064 - -
E20221736-001 880,100 - - 477,837 552,561 74,724 -
Total Department of Health and Human Services 1,823,885 56,290 - 603,191 621,625 74,724 -
TOTAL FEDERAL ASSISTANCE $ 57,018,629 $ 928,690 $ (11,440,947) $ 19,650,868 $ 16,896,777 $ (13,266,348) $ 3,109,885
The accompanying notes are an integral part of this statement.
194
City of Muskegon
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30, 2022
1. The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the City under programs of the federal
government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule
presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position or change in net position of the City.
2. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. Expenditures are recognized following the cost
principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the
schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The City is not using the ten-percent
de minimis indirect cost rate as allowed under the Uniform Guidance.
3. Unearned revenue for the American Rescue Plan Act at June 30, 2021 was inadvertently ommitted from the prior year Schedule of Expenditures of Federal Awards.
4. The following is a reconciliation of federal revenues as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances of the City of Muskegon's
financial statements for the year ended June 30, 2022 and federal expenditures per the Schedule of Expenditures of Federal Awards.
164
Federal revenues per City of Muskegon financial statements
General Fund $ 291,918
Other governmental funds 12,811,940
13,103,858
Plus drawdowns on federal loans 3,666,662
Plus program income 126,257
Federal expenditures per the Schedule of Expenditures of Federal Awards $ 16,896,777
195
City of Muskegon
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended June 30, 2022
SECTION I—SUMMARY OF AUDITOR’S RESULTS
A. Financial Statements
1. Type of report the auditor issued on whether the financial statements audited were prepared in accordance
with GAAP: Unmodified
2. Internal control over financial reporting:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
3. Noncompliance material to financial statements noted? yes X no
B. Federal Awards
1. Internal control over major federal programs:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
2. Type of auditor’s report issued on compliance for major federal programs: Unmodified
3. Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? yes X no
4. Identification of major programs:
Assistance Listing Number(s) Name of Federal Program/Cluster
U.S. Department of Treasury
21.027 ● Coronavirus State and Local Recovery Funds
U.S. Small Business Administration
59.075 ● Shuttered Venue Operators Grant
Environmental Protection Agency
66.458 ● Capitalization Grants for Clean Water State
Revolving Funds
5. Dollar threshold used to distinguish between type A and type B programs: $750,000
6. Auditee qualified as low-risk auditee? yes X no
SECTION II – FINANCIAL STATEMENT FINDINGS
NONE
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
NONE
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CLIENT DOCUMENTS
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Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager
(231)724-6724
FAX (231)722-1214
Clerk
(231)724-6705
FAX (231)724-4178 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Comm. & Neigh.
Services
(231)724-6717 December 21, 2022
FAX (231)726-2501
Computer Info.
Technology
(231)724-4126 U.S. Department of Housing and Urban Development
FAX (231)722-4301 Washington D.C.
Engineering
(231)724-6707
FAX (231)727-6904 City of Muskegon respectfully advises you that there were no audit findings reported in our single
Finance audit report, dated December 9, 2021, for the year ended June 30, 2021.
(231)724-6713
FAX (231)726-2325
Sincerely,
Fire Department
(231)724-6795
FAX (231)724-6985
Human Resources
Co. (Civil Service)
(231)724-6442
FAX (231)724-6840 Ken Grant
Income Tax Finance Director
(231)724-6770
FAX (231)724-6768
Mayor’s Office
(231)724-6701
FAX (231)722-1214
Planning/Zoning
(231)724-6702
FAX (231)724-6790
Police Department
(231)724-6750
FAX (231)722-5140
Public Works
(231)724-4100
FAX (231)722-4188
SafeBuilt
(Inspections)
(231)724-6715
FAX (231)728-4371
Treasurer
(231)724-6720
FAX (231)724-6768
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
(231)724-4106 http://www.shorelinecity.com
FAX (231)755-5290 168
199
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager
(231)724-6724
FAX (231)722-1214
Clerk
(231)724-6705
FAX (231)724-4178 CORRECTIVE ACTION PLAN
Comm. & Neigh.
Services
(231)724-6717 December 21, 2022
FAX (231)726-2501
Computer Info.
Technology U.S. Department of Housing and Urban Development
(231)724-4126
FAX (231)722-4301 Washington D.C.
Engineering
(231)724-6707
FAX (231)727-6904 City of Muskegon respectfully submits the following Corrective Action Plan for the year ended June
Finance 30, 2022.
(231)724-6713
FAX (231)726-2325
Name and address of independent public accounting firm:
Fire Department
(231)724-6795 Brickley DeLong, P.C.
FAX (231)724-6985 P.O. Box 999
Human Resources Muskegon, MI 49443
Co. (Civil Service)
(231)724-6442 Audit period: June 30, 2022
FAX (231)724-6840
Income Tax The findings from the Schedule of Findings and Questioned Costs for the year ended June 30, 2022
(231)724-6770 provided no findings in either Section II or Section III. Accordingly, there are no matters requiring
FAX (231)724-6768
corrective action as shown below.
Mayor’s Office
(231)724-6701 SECTION II – FINANCIAL STATEMENT FINDINGS
FAX (231)722-1214
Planning/Zoning There were no findings in relation to the financial statement audit.
(231)724-6702
FAX (231)724-6790
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Police Department
(231)724-6750
FAX (231)722-5140 There were no findings in relation to the major federal award programs.
Public Works
(231)724-4100 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please
FAX (231)722-4188 call Ken Grant at (231) 724-6932.
SafeBuilt
(Inspections) Sincerely,
(231)724-6715
FAX (231)728-4371
Treasurer
(231)724-6720
FAX (231)724-6768
Ken Grant
Water Billing
(231)724-6718 Finance Director
FAX (231)724-6768
Water Filtration City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
(231)724-4106 http://www.shorelinecity.com
FAX (231)755-5290 169
200
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: MIHAF Application
Submitted By: Sarah Wilson Department: Treasurer
Brief Summary: The Homeowner Assistance Fund was established as part of the American
Rescue Plan Act of 2021 (ARP). The State of Michigan received more than 242 million dollars, to
be used to mitigate hardships associated with the coronavirus pandemic, including utility
payments. The State created the Michigan Homeowner Assistance Fund (MIHAF) to provide
these funds to eligible homeowners. The City Treasurer is requesting authorization to sign the
attached documents to partner with MIHAF so that any eligible city residents can receive utility
payment assistance.
Detailed Summary & Background:
The Michigan Homeowner Assistance Fund (MIHAF) is a statewide program that uses federal
resources to provide financial assistance to homeowners who have fallen behind on
homeownership-related expenses because of the COVID-19 Pandemic. It provides funds to
eligible entities for the purpose of preventing homeowner mortgage delinquencies, defaults,
foreclosures, loss of utilities or home energy services, and displacements of homeowners through
qualified expenses related to mortgages and housing. Eligibility criteria and eligible expenses are
detailed on the attached documents.
Participation in the program does not guarantee our residents will receive funding from this
program; however, it does make them eligible to apply for funding. If we choose not to partner with
MIHAF, our residents cannot apply for these funds to assist in paying their utility bills.
Goal/Focus Area/Action Item Addressed: Goal 2: Housing; Goal 4: Financial Infrastructure
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To authorize the City Treasurer to sign all necessary documents to partner
with the Michigan Homeowner Assistance Fund so that the City will be eligible to receive
assistance payments made on behalf of eligible utility customers.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
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Legal Review
For City Clerk Use Only:
Commission Action:
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Leads Online
Submitted By: Director Timothy E. Kozal Department: Public Safety
Brief Summary: Electronic reporting for Pawn Shops, secondhand dealers and precious Metaugem
dealers
Detailed Summary & Background: The purpose of Leads Online is to improve the system of
reporting to law enforcement officials all items collected by pawn brokers, secondhand dealers and
precious metal/gem dealers for the purpose of aiding law enforcement in locating and retrieving
stolen property. Leads Online has nationwide search capabilities, and email notification when
suspects are active nationwide for National pawn, scrap, jewelry, firearms, consignment, cell
phone re-sale access and online sales such as Ebay and Offerup. Leads Online has the ability to
track suspect sales activity across the country, access to over 20,000 businesses reporting and
free software, training, and support for local businesses. Currently the city has no means to collect
or view reported data.
Goal/Focus Area/Action Item Addressed:
Refer to the 2022-2027 Long Term Goals document.
Amount Requested: $15,662 3-year contract Amount Budgeted:
Contact Finance if your item does not fit into
the current budget.
Fund(s) or Account(s):101-301-861 Fund(s) or Account(s):
Recommended Motion: To approve the Police Department to acquire this 3-year contract with
Leads Online program
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Towing Agreement
Submitted By: Director Timothy Kozal Department: Public Safety
Brief Summary: 2023 Towing Contract, Ramos Towing, 2-year contact
Detailed Summary: Bids were submitted to the Clerks office on December 13, 2022 with several
bidders. Towing to facility $80.00, Storage fee per day $30.00.
Amount Requested: 0 Amount Budgeted: not applicable
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To award the 2023 Towing Contract to Ramos Towing and authorize the
Mayor and Clerk to sign.
Approvals: Get approval from division head at a minimum prior to sending to the Clerk.
Immediate Division Head Information Technology
Other Division Heads Communication
Legal Review
For City Clerk Use Only:
Commission Action:
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TOWING AGREEMENT
This Towing Agreement is made on November 22, 2023: between
the City of Muskegon, Michigan Municipal Corporation, with offices at
933 Terrace Street, Muskegon, Michigan 49440 ("City"), and Ramos
Towing, with offices at 710 Alberta St., Muskegon, Ml. ("Contractor").
Recitals
A. Contractor operates a vehicle towing service,
impound service and facility licensed by the State of Michigan;
and,
B. City desires to retain Contractor to operate a vehicle
towing service, impoundment service and facility pursuant to the
terms and conditions of this Agreement.
Therefore, the parties mutually agree as follows:
1. Retention of Contractor. City retains Contractor as an
independent contractor to operate a towing and wrecker service and
impoundment facility for the storage of certain motor vehicles for the
City pursuant to the terms and conditions of this Agreement. City agrees
to exclusively utilize Contractor's towing and wrecker service and
impoundment facility, providing the owner/operator of said motor vehicle
does not expressly select some other alternative and reasonable
provider of said services. Notwithstanding the foregoing, City may call
another towing company if Contractor does not respond in a timely
manner or does not provide adequate equipment necessary to provide
the services as provided by this Agreement. The City reserves the right
to hire specialized equipment outside the scope of this Agreement when
needed, i.e., mobile cranes, or other heavy
equipment which might be needed for special situations. The parties
specifically agree that all fees, charges and expenses incurred by
Contractor in performance of this Agreement are not City's obligation,
and all collection attempts will be directed to the owner/operator of the
subject motor vehicle.
2. Term. The term of this Agreement will commence on
January 1, 2023 and will continue until December 31, 2025, unless
earlier terminated by City pursuant to Section 10. City will have the
unilateral option to extend this Agreement for two additional one-year
terms under the same terms and conditions of this Agreement if, in
City's sole discretion, the extension is in the City's best interest. This
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extension will be exercised by the City providing written notice to
Contractor at least 60 days prior to the termination date.
3. Duties of Contractor. Contractor will operate a vehicle
towing service, impound service and facility seven days a week, 24-
hours a day, in such a manner that Contractor can be reached by
telephone at all times by Muskegon Central Dispatch, the Muskegon
Police Department, and the Muskegon Department of Public Works.
Contractor will tow and/or store all motor vehicles, including tractors
and trailers, directed to be towed and/or stored by the City's agents
and employees.
a. Equipment. At all times during the term of this Agreement,
Contractor will own and keep in good operating condition the following
equipment:
i. FCC licensed radio dispatched wreckers;
ii. Set of dollies;
iii. Equipment for changing tires, air tanks for inflating tires,
tools for lock-outs;
iv. Booster battery or cables for starting cars or trucks;
v. Fire extinguishers, flares;
vi. Extra chains, pry bar, broom and shovel, bucket, oil dry;
vii. Two standard wreckers fully equipped as specified herein and
one large heavy-duty wrecker capable of handling trucks,
trailers, semi-trailers, and other large vehicles, up to a gross
weight of 50 tons;
viii. Power winch on each unit set forth in (vii) above; and,
iv. Gross vehicle weight per wrecker unit rating of not less than
8,000 pounds, and the manufacturer's specifications for rated
capacity of at least one ton.
x. Wrecker for 50-ton vehicles (or sub contracted for this
equipment)
All equipment must be maintained in good working order to safely
perform the service required by this Agreement, and conform to the standards,
requirements and regulations mandated by federal, state, county and City
agencies.
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All towing vehicles will be equipped with communication devices
capable of covering all of the territory within the City limits and its immediate
bordering jurisdictions and will be subject to periodic inspections by the City
regarding their mechanical condition.
Contractor will keep the City informed of the number of tow trucks it
has available for use in the performance of this Agreement, including the
year, make, model, and capacity. This information must be supplied to the
Director of Public Safety.
Contractor will display the company name and phone number
prominently on each of its vehicles used in accordance with this Agreement.
b. Facility. At all times during the term of this Agreement,
Contractor's towing and impound service facility must:
i. be located within Muskegon County;
ii. contain a heated, secure building;
iii. have a fenced area able to accommodate up to 75 vehicles;
iv. comply with the laws of Michigan and the City of Muskegon;
v. have prominently posted a list of towing and storage
charges, hours of operation as approved by the City,
as well as the Contractor's business telephone
number; and,
vi. be maintained in a clean and presentable condition.
c. Fees. At all times during the term of this Agreement,
Contractor will abide by the table of fees attached to Contractor's bid
documents, which is incorporated herein and made a part hereof as
Appendix A. Any customer service, including accidents, impounds or
private tows, received through a request of the City, will be invoiced
according to this fee schedule. Notwithstanding the foregoing, if a vehicle is
impounded for evidence, contractor agrees that all storage fees will cease
and tow fees in certain exigent circumstances relating to victims may be
waived at the sole discretion of the Director of Public Safety.
During the term of this Agreement, Contractor may not increase its
fees except upon prior approval granted by the Muskegon City Commission,
following review and recommendation by the Muskegon Police Department
and/or Department of Public Works.
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Contractor will charge only for equipment actually needed and
requested by City at the scene.
City reserves the right to cancel a request for services of the
Contractor at any time, including up to the time of hook up, without either
the City or owner or operator incurring any charges. If the owner of the
vehicle arrives on scene before the vehicle is towed, and the vehicle can
be safely moved by the owner in the opinion of the police officer in charge
at the scene, no charges will be incurred and the vehicle will be released
to the owner.
Contractor will not charge storage fees for any day Contractor is closed
to the general public. Contractor will not charge storage fees for the first 24
hours of storage.
d. Personnel Qualifications. Contractor will maintain adequate
staffing in order to insure proper and timely response to any and all police
requirements for impounding vehicles. Contractor will provide the City with a
list of the names and addresses of all current operators/drivers and will notify
the City of all changes in operators/drivers. Every operator/driver will:
i. be competent by reason of demonstrated experience or
training, in the sole judgment of the City, to safely operate the type of
tow truck used by the impound service;
ii. possess the ability to rig, move, pick up and transport
vehicles without increasing the original damage, insofar as possible;
iii. be free from the influence of alcoholic beverages,
narcotics, or dangerous drugs while on duty;
iv. be familiar with the ordinances, rules and regulations
pertaining to tow trucks; and,
v. be licensed as provided by applicable federal, state and
local Jaws and ordinances.
e. Expenses. Contractor will be solely responsible for all
expenses incurred by Contractor, its agents and employees, in connection
with the performance of this Agreement.
f. Auctions. Contractor will be responsible for the holding of public
auctions for abandoned vehicles, furnishing all documentation attendant to
any sale at said auction, paying for the auctioneer, and paying for the public
notice advertised in the local daily newspaper. Contractor agrees to hold said
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auctions under the supervision of the Muskegon Police Department. Auctions will
be conducted based on the number of vehicles held, but not less than once per
calendar quarter. If no bids are received at the auction, Contractor will become
the owner of the vehicle or group of vehicles and will be responsible for disposal.
Public auctions will comply with State law.
Contractor shall be responsible for $55 city fee for each impounded vehicle
sold at auction.
g. Storage of Vehicles. All vehicles impounded will be stored in a
storage lot or building which is fenced with all gates securely locked and a
responsible person in charge of the business 24 hours a day that may be called
to respond to the lot by someone from the City. Vehicles stored in the building or
storage yard will be parked so as to allow one foot of space between vehicles.
Storage charges will not be assessed for the first 24 hours of storage.
h. Release of Vehicles. The owner of an impounded vehicle or
authorized representative of the owner will be required to have a signed
approval by the City's Police Department prior to the vehicle being released.
Whenever impounded vehicles are claimed by the owner, Contractor will provide
the owner with an itemized statement of all charges relating to impounding the
vehicle, including a written justification for fees over and above the standard towing fee.
Contractor will make every reasonable effort to verify that the individual
claiming a stored vehicle is the actual owner or authorized representative of the
owner before the vehicle is released.
i. Hours of Operation. Contractor will be available and capable of
providing towing services 24 hours a day on each and every day (365 days a year)
during the term of this Agreement. Contractor will be open to the general public from
8:00 am through 5:00 pm, Monday through Friday, on each and every week during the
term of this Agreement to release motor vehicles to their rightful owners. No storage
fees may be charged by Contractor for any day that the business is closed to the
general public.
j. Services. Contractor will have a tow truck at the scene in a timely
manner to tow vehicles as requested by the City. Furthermore, Contractor will
clean up accident debris from the street upon response to accident scenes. If
clean-up is requested and towing is not required there will be no clean-up charge to the
City. Clean-up will be deemed completed when inspected and approved by the City
official in charge at the scene. If Contractor does not arrive at the requested location
within 25 minutes, the police officer or City employee may have the vehicle towed to
Contractor's yard at Contractor's expense, and Contractor will accept the vehicle for
storage.
At the towing scene, or upon reasonable dispatch thereafter, Contractor must
provide the owner or operator of the motor vehicle with a written list itemizing
towing fees, storage rates and other expenses. Additionally, Contractor must advise in
writing the owner/operator of the right to remove any and all unattached
personal property from the motor vehicle at the impoundment yard.
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k. Driving of Vehicles. Neither Contractor nor any of its employees
and/or agents will at any time drive or remove from the premises any motor
vehicles placed with Contractor for storage purposes, except with the written
permission of the owner of the motor vehicle or by operation of law.
l. Recommendation of Repair or Collision Shop. Under no
circumstances will Contractor recommend a repair or collision shop to the
vehicle owner/operator.
4. Recordkeeping and Documentation. Contractor will maintain
all required records and complete all necessary forms for the state of
Michigan, Muskegon Police Department, and the Muskegon Department of
Public Works. Contractor will maintain all records relating to the disposition of
impounded vehicles for a period not less than four years, and the City will have
the right to inspect, copy and audit these records during any business hours.
a. Invoices. A written or computerized record or invoice will
be kept by Contractor and include the following information for each
vehicle:
i. Vehicle identification number;
ii. Gross vehicle weight rating;
iii. Year, make, and model of vehicle;
iv. Name of owner of vehicle;
v. Details of all services rendered regarding vehicle;
vi. Location from which the vehicle was towed or impounded;
vii. Mileage of the vehicle; and,
viii. Any other information the City may require.
These records will be maintained and kept throughout the term of this
Agreement (plus one year following the termination of this Agreement)
and will be made available to the City for inspection upon request.
b. Monthly Audit. A monthly audit will be conducted by
Contractor of all vehicles impounded, including the reason the vehicle was
impounded. The audit will be submitted to the City's Police Department by
the fifteenth day of the following month. Any invoice for special equipment
or added services which exceed the standard towing fees will be
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specifically itemized and contain written justification for such additional
fees.
5. Independent Contractor. Contractor is an independent contractor
and not an employee of the City. Neither the Contractor, nor the Contractor's
employees or subcontractors, will be entitled to any or additional insurance,
health, retirement or similar benefits which are or may become available to City
employees, as a result of this Agreement. In addition, current or future City
employees or agents will not be construed or considered to be employees or
agents of Contractor.
6. Taxes. Contractor will be solely responsible for the payment and
withholding of any and all taxes, levies and assessments under any federal, state
or local law and will provide for the payment of taxes on or for income,
unemployment, old age, social security, workman's compensation, or any other
taxes with respect to the Contractor, the Contractor's employees or
subcontractors in connection with the work performed pursuant to this
Agreement.
7. Insurance.
a. Liability Insurance. During the term of this Agreement,
Contractor must maintain comprehensive general liability insurance and vehicle
liability insurance, including coverage of all operations as a towing service and
name the City as co-insured in at least the following amounts:
i.Comprehensive general liability insurance in an amount not
less than $1,000,000 for each occurrence;
ii. Vehicle liability insurance in an amount no less than
$1,000,000 for each occurrence;
iii. An umbrella policy for liability insurance covering any
and all of such risks in an amount not less than $1,000,000; and,
iii. A garage keeper's insurance policy in the amount of not
less than $250,000.
Contractor will provide City with copies of these insurance policies.
b. Worker's Compensation Insurance. During the term of this
Agreement Contractor must maintain in full force and effect, workers
compensation insurance with limits established under state law, and provide
City with a copy of the appropriate certificate evidencing same.
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8. Warranty. Contractor warrants and represents that it is familiar
with the towing and impoundment requirements of the City and is capable of
rendering all services as required in this Agreement. Contractor acknowledges
that it has made a thorough independent investigation as to its undertakings
under this Agreement and as to the actual conditions and requirements of the
work and the amount of work to be done.
Contractor acknowledges that the City has not made and does not make
any warranties or representations with respect to the City's obligations set forth
in this Agreement except as provided in this Agreement.
9. City Inspections. Contractor will allow members of the City of
Muskegon Police Department or other authorized City representatives to inspect
the Contractor's lot or building, stored vehicles, office or other buildings and
records relative to this Agreement whenever it is deemed necessary by the City.
City reserves the right to conduct an audit at least twice a year of all bills and
records relative to this Agreement. Contractor agrees to provide access to the
records for inspection by the City and its auditors.
10. Cancellation of Agreement. This Agreement may be canceled by
City upon two days written notice, delivered by hand or sent by ordinary mail
addressed to the Contractor at Contractor's address provided in this
Agreement. This Agreement may be cancelled, if, in the sole-judgment of the
City's Director of Public Safety, the Contractor has not performed according to
the terms of this Contract.
This Agreement may be canceled by the Contractor upon 60 days written
notice to City's Director of Public Safety.
11. Indemnification. Except as otherwise provided in this Section, City
and its elected officials, appointed officials, employees and agents (collectively
hereinafter referred to as the "Indemnified Persons"), will not be liable to
Contractor for any reasons. Contractor will indemnify and hold City and the
Indemnified Persons harmless from any loss, expenses, or liability of any nature
(including attorneys' fees) due to any and all suits, demands, actions, legal or
administrative proceedings or claims arising or resulting from or in connection
with:
a. Any act or failure to act including negligence or
misrepresentation by the City or any Indemnified Person, whether
attributable to the City or Contractor in connection with or resulting from
this Agreement, the operations of Contractor, or any other activity;
provided however, that Contractor will not be obligated to indemnify the
City or any Indemnified Person under this Section including costs and
counsel fees if a court of competent jurisdiction finds that the liability in
question was caused by the intentional misconduct or gross negligence of
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the City and any Indemnified Person unless the court determines that,
despite the adjudication of liability but in view of all circumstances of the
case, the City or any Indemnified Person is fairly and reasonably entitled
to indemnification which the court considers proper; and/or
b. The negligent performance by Contractor or its agents,
employees, or officers of any work purportedly authorized to be
performed under this Agreement; and/or
c. Any loss or damage connected to or resulting from any work
performed or authorized to be performed under this Agreement; and/or
d. Any injury or damage to any person or property arising
out of this Agreement or the Contractor's performance of this
Agreement.
If any action or proceeding is brought against the City or any Indemnified
Person, connected to or resulting from any work performed or authorized to be
performed under this Agreement, that action or proceeding will be defended by
counsel to the City or the Contractor as City will determine. If the defense is by
counsel to the City, the City will pay the costs of that defense including its
counsel fees. If the City determines that the Contractor will defend the City or
an Indemnified Person, the Contractor will immediately assume the defense at
its sole costs.
The Contractor and the City agree to act cooperatively in the defense of
any action brought against the City and the Contractor to the greatest extent
possible. The City agrees that it will not settle any action or proceeding against
it without prior written consent of the Contractor, unless the City has provided
written notice to the Contractor of its decision to waive any right to
indemnification for the proposed settlement (including any costs, expenses or
counsel fee associated therewith).
Contractor will also indemnify City for all costs and expenses, including
reasonable counsel fees, incurred in enforcing any obligation of the
Contractor under this Agreement.
12. Non-Discrimination. Contractor covenants not to discriminate on
the basis of race, color, religion, or national origin against any employee or
applicant for employment to be employed in the performance of this Agreement
with respect to his/her hire, compensation, tenure, terms, conditions or privileges
of employment, and Contractor further covenants not to so discriminate against
any other person using or attempting to use the facility and services described in
this Agreement. Further, Contractor covenants to require similar covenants on
the part of any sub-contractor(s) or agent(s) employed in the performance of this
Agreement. Contractor will furnish his services on a fair, equal, and non-
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discriminatory basis to all users.
13. Prevention and Satisfaction of Liens. Contractor agrees not to
file, assert, prosecute, and will not allow construction, mechanic's or material
men's liens to be filed or continued against any City property for services
performed, or for materials, machine '1/ or equipment furnished in connection
with the work to be performed by Contractor or by Contractor's sub-contractors.
If any such lien is nevertheless filed, Contractor agrees, at Contractor's
expense, to take any and all steps necessary and proper for the release,
satisfaction and discharge of said lien.
14. Permits and Licensing. Contractor agrees to comply with all
federal, state and local laws, ordinances, rules regulations and requirements that
are now, or may in the future become, applicable to Contractor's business or
equipment for the work to be performed pursuant to this Agreement. Contractor
will provide employees who possess a Commercial Driver's License with the
appropriate designation with providing service under this Agreement. It is
Contractor's responsibility to provide services in compliance with the Americans'
Disabilities Act. Contract will also meet the requirements of the Michigan
Commercial Driver's License Standards, Federal Drug Free Workplace Act, the
Elliott-Larson Act, the Michigan Civil Rights Act, and any other applicable
employee related legislation.
15. State of Michigan Abandoned Vehicle Fee. Contractor agrees
not to charge a customer the State of Michigan abandoned vehicle fee until the
customer's vehicle is entered into the LEIN system as an abandoned vehicle. If
Contractor fails to comply with this Section, then Contractor agrees to fully
reimburse the customer, and pay City two times the amount of the abandoned
vehicle fee (currently $40-so, Contractor would pay City $80 per occurrence).
Contractor shall abide by state law and pay the required abandon vehicle fees to
the Michigan Secretary of State.
16. Default. It is expressly agreed between the parties that if the
impoundment or storage facilities described in this Agreement are vacated,
abandoned or not maintained or operated in accordance with this Agreement, or
if Contractor attempts to sell, convey or assign this Agreement, or if Contractor
fails lo provide notices in a timely and proper manner in accordance with Public
Act 1981, No. 104 as amended, or if Contractor defaults in any of the terms of
this Agreement, or if Contractor fails to comply with any statutes, ordinances,
rules, orders, regulations, or requirements of the federal, state and/or City
government or of any and all of their departments and bureaus applicable to the
premises and operations described in this Agreement, or if the Contractor files a
petition in bankruptcy or be adjudicated as bankrupt, or make an assignment for
the benefit of creditors, or take advantage of any insolvency act, City may elect
to terminate this Agreement immediately and, if City elects to terminate this
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Agreement because of the violation of this paragraph, upon such termination
Contractor will compensate City for the loss suffered by reason of the
termination and the default hereunder.
17. Right to Control. Contractor agrees to perform and supervise all
work under this Agreement efficiently and in accordance with the highest
standards of the industry. Contractor will be solely responsible for the means,
methods, techniques, sequences and procedures for completing the work.
18. Miscellaneous.
a. Sale or Assignment. This Agreement may not be
assigned or sub- contracted without the City's prior written consent.
Contractor's owner(s) agree not to sell or assign their interest, including
their stock, membership interest, or assets in Contractor without City's
prior written consent.
b. Validity. The invalidity of any portion of this Agreement will
not affect the remainder of the Agreement, unless the City so elects.
Unless the City elects otherwise, if any terms of this Agreement shall be
held invalid, illegal, or unenforceable in whole or in part, the validity of the
other terms of this Agreement shall not be affected and shall remain in full
force and effect.
c. Governing Law. This Agreement will be governed by the
laws of the State of Michigan.
d. Entire Agreement. This Agreement represents the entire
and integrated Agreement between the City and Contractor and
supersedes all prior negotiations, representations or agreements, either
written or oral.
e. Amendments. All amendments to this Agreement must
be made in writing and signed by City and by Contractor.
The parties have signed this Agreement the date first above set forth.
City of Muskegon, a Michigan Municipal Corporation
By:
Mayor
Contractor- Ramos Towing
By:
Owner
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Arena – Janitorial Contract
Submitted By: Jake Laime Department: Arena Director
Brief Summary: Seeking approval of the proposed amended Janitorial contract with Goodwill
Industries to provide service to Trinity Health Arena.
Detailed Summary:
Staff is seeking the approval of the amendment to the current City Janitorial Contract with Goodwill
Industries – West Michigan to include Trinity Health Arena. Goodwill Industries – West Michigan
was recently approved for a one year extension to their current contract with the City of Muskegon
to include DPW and City Hall.
Goal/Focus Area/Action Item Addressed:
Amount Requested: $1,080/event (60 events Amount Budgeted:
max)
Fund(s) or Account(s): 254 Fund(s) or Account(s):
Recommended Motion: Authorize staff to add Trinity Health Arena to the amended City janitorial
contract (Goodwill Industries – West Michigan) which was approved in 2020.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication
Legal Review No
For City Clerk Use Only:
Commission Action:
256
257
258
259
260
261
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263
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10th, 2023 Title: Boys & Girls Club Agreement
Submitted By: Matt Schwemin Department: Public Works
Brief Summary:
Staff is seeking Commission approval to extend the staffing agreement with Boys and Girls Club
through calendar year 2023.
Detailed Summary & Background:
Staff is proposing to extend the staffing agreement with Boys and Girls Club through calendar year
2023. Boys and Girls Club provided staffing to assist with our seasonal staffing needs during the
2022 calendar year, which was viewed positively by both parties. The original agreement was
approved at the April 12th, 2022 Commission Meeting and included a clause that allowed for
extension if approved by both parties. Staff is seeking commission approval for the extension.
Goal/Focus Area/Action Item Addressed:
Blight Cleanup
Amount Requested: $40,000 Amount Budgeted: $40,000
Fund(s) or Account(s): 101-770-801 Fund(s) or Account(s): 101-770-801
Recommended Motion: Approve the extension of the staffing contract with Boys and Girls Club
and authorize the Mayor and Clerk to sign.
Approvals: Guest(s) Invited / Presenting
Immediate Division Head Information Technology
Other Division Heads Communication Yes
Legal Review No
For City Clerk Use Only:
Commission Action:
264
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager January 10th, 2022
(231)724-6724
FAX (231)722-1214
Boys and Girls Club
Clerk 900 W. Western Ave.
(231)724-6705
FAX (231)724-4178 Muskegon, MI 49441
Comm. & Neigh.
Services RE: Extension of Partnership Agreement
(231)724-6717 Boys and Girls Club of the Muskegon Lakeshore.
FAX (231)726-2501
Computer Info. Dear Mr. Randy Vander Weit:
Technology
(231)724-4126
FAX (231)722-4301 The City of Muskegon hereby requests that the Agreement be extended for the period of January 1,
2023 – December 31, 2023. The proposed budget for the extension period will be as listed in the
Engineering
(231)724-6707 previous contract with the discretion of the city. We have agreed this be taken into consideration
FAX (231)727-6904 with this extension.
Finance
(231)724-6713 This modification is requested for the following reason(s):
FAX (231)726-2325
Fire Department The City of Muskegon utilizes a contract to assist the City of Muskegon Parks Department.
(231)724-6795
FAX (231)724-6985 The extension proposes to request approximately 15 seasonal employees & 2 field
coordinators. Services include contract laborers for seasonal projects on an as-needed basis.
Human Resources
Co. (Civil Service)
The City intends to solicit bids for a new contract in the fall of 2023.
(231)724-6442 The City of Muskegon is an AA/EEO/ADA Employer.
FAX (231)724-6840
Income Tax Thank you for your consideration of this request.
(231)724-6770
FAX (231)724-6768
The City of Muskegon
Mayor’s Office
(231)724-6701
FAX (231)722-1214
Planning/Zoning
(231)724-6702 By: Ken Johnson, Mayor Date
FAX (231)724-6790
Police Department
(231)724-6750
FAX (231)722-5140
Public Works And: Ann Meisch, Clerk Date
(231)724-4100
FAX (231)722-4188
SafeBuilt Contractor
(Inspections)
(231)724-6715
FAX (231)728-4371
Treasurer
(231)724-6720 By: Randy Vander Weit, Dir. Of Extended Programs Date
FAX (231)724-6768
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration
(231)724-4106
Department of Public Works & Utilities, 1350 E. Keating Avenue, Muskegon, MI 49442
FAX (231)755-5290 http://www.shorelinecity.com
265
CITY OF MUSKEGON
CONTRACT FOR TEMPORARY STAFFING SERVICES
This Agreement is effective upon execution between the City of Muskegon, a Michigan
municipal corporation, of 933 Terrace Street, Muskegon, MI 49443 (“City”) and the Boys and
Girls Club of the Muskegon Lakeshore, of 900 W Western Avenue, Muskegon, MI 49441
(“Contractor”) with reference to the following facts:
RECITALS
A. Contractor requested to partner with the Public Works Department to maintain parks,
landscaping and other facilities throughout the city.
B. Contractor agreed to provide approximately eight staff in two teams of approximately four
each, with one supervisor per team, to support the Public Works Department in maintaining
the parks, landscaping and other facilities.
NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties agree as follows:
1. Services. Contractor shall provide the following services:
a. In the area known as the Business Improvement District (BID), including nearby
parks and city properties, maintaining flower beds and other landscaping by
removing weeds and other undesirable plants and items, turf maintenance using
push mowers and other hand-operated equipment, picking up loose debris and
refuse (trash), emptying refuse containers, and performing other cleaning and
maintenance tasks as designated by Public Works Department Staff.
b. Picking up loose debris and refuse (trash), emptying refuse containers, cleaning
restrooms, and performing other cleaning and maintenance tasks as designated by
Public Works Department Staff in parks and other City-owned properties. This
effort is primarily envisioned at Beukema Playfield, Reese Playfield, Sheldon Park,
and McCrea Playfield, however other parks or properties may be assigned by Public
Works Department Staff in consultation with Contractor.
c. During the months of June, July and August, the contractor will provide up to 35
hours of labor per week per employee. During April, May, September and October,
the contractor will provide a reduced workforce to support critical efforts. The
employees are students and will not have as much availability during the school
year.
2. Equipment. The City shall supply safety equipment mandated for employees while on
assignment with the City, together with other equipment described herein.
BGCML Temporary Staffing Service Agreement Page 1 of 6
4 /15/22 – 10/31/22
266
a. The City shall supply hand-operated equipment that directly supports the tasks
described in this agreement and other duties as assigned by Public Works
Department Staff in consultation with the Contractor; examples of this equipment
includes hand-operated lawn mowers, string trimmers, leaf blowers, hand tools
such as rakes and spades, and cleaning equipment such as brushes and bottles. The
City will provide materials to support the efforts, such as gasoline, string line, paper
towel(s), cleaning solutions and refuse bags.
b. If available for use, the City may supply a self-propelled utility cart to assist with
refuse disposal, carrying equipment and staff relocation, based from a facility
within or near the BID, for Contractor’s use. All operators of such a cart must be
licensed within the State of Michigan to operate a motor vehicle and carry a current
driver’s license. The City will provide materials to support the cart, such as
gasoline.
c. If available for use, the City may supply a motor vehicle and/or utility trailer to
assist with refuse disposal, carrying equipment and staff relocation, based from the
City’s Public Works Facility at 1350 E. Keating Avenue, Muskegon, MI 49442, for
Contractor’s use. All operators of such a vehicle and/or utility trailer must be
licensed within the State of Michigan to operate a motor vehicle and carry a current
driver’s license. The City will provide materials to support the vehicle, such as
gasoline.
d. The City will perform any required maintenance on City-owned equipment. The
City reserves the right, in its sole discretion, to withdraw the use of equipment if
deemed in the best interest of the City. Any damage caused to rented or borrowed
equipment is the responsibility of the Contractor.
e. In the event the City is unable to provide equipment, and upon written approval
from City, the Contractor may rent equipment that is deemed necessary for the
Services. The City will provide materials to support rented equipment, such as
gasoline and other consumables not included in rental costs. Maintenance of rented
equipment shall be the responsibility of the Contractor. The City will reimburse the
cost of the equipment rental at actual cost, including maintenance costs.
3. Expenses. Contractor shall be responsible to pay for all expenses incurred by Contractor
related to the performance of its duties under this Agreement, except as described in
Section 2.e of this agreement.
4. Contract Billing. City agrees to pay Contractor, in full consideration for the complete
performance of Contractor’s obligations under this Agreement:
a. Youth will be paid at a rate of $12/hour.
b. Supervisors will be paid at a rate of $15/hour.
BGCML Temporary Staffing Service Agreement Page 2 of 6
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c. For all labor, Contractor will bill a markup of 37.5% to cover taxes, insurance and
administrative costs. Expenses, when reimbursable, will be billed at actual cost.
5. Payment. Contractor shall submit detailed invoices on a monthly basis for the prior
month’s services. Payments according to this agreement are invoiced and paid on a
monthly basis. Requests for payment shall be submitted on a detailed invoice to the City
monthly for the previous month. The City agrees that payment shall be due on net 30-day
terms.
6. Specific Reservations. City reserves the right to discontinue its use of temporary
employees from contractor as it determines appropriate.
7. Terms and Termination. This Agreement shall be effective on the date of execution, and
shall remain in full force and at the same terms through October 31, 2022, with an option
to renew for an additional term, if mutually agreed upon by both parties as memorialized
in a written and signed agreement.
8. Commencement and Damages.
a. Commencement. Contractor shall commence performance under this Agreement
upon its execution.
The City shall notify Contractor of any violation of the Agreement. It shall be the
duty of Contractor to remedy a Contractor violation.
Failure to perform pursuant to this Agreement for a period in excess of five (5)
consecutive scheduled, working days, or failure for a similar period, to perform in
the manner required, and provided such failure is not a result of war, insurrection,
riots, or acts of God, the City may, at its option and after written notice to
Contractor, utilize any or all of Contractor’s equipment used in performance of this
Agreement until such time the matter is resolved and the Contractor is performing
under the terms of the Agreement.
b. Appeal. The City’s determination regarding damages shall be final and binding on
both parties unless appealed, in writing, to the City Manager or his designee within
ten (10) working days after notice. The City Manager or his designee shall grant
Contractor an informal hearing upon such request. The decision of the City
Manager shall be final and binding.
9. Insurance and Indemnity.
a. City Insurance Requirement. The contractor, and any and all of their
subcontractors, shall not commence work under this contract until they have
obtained the insurance required under this paragraph, and shall keep such insurance
in force during the entire life of this contract. All coverage shall be with insurance
companies licensed and admitted to do business in the State of Michigan and
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acceptable to City of Muskegon. The requirements below should not be interpreted
to limit the liability of the Contractor. All deductibles and SIRs are the
responsibility of the Contractor.
b. Worker’s Compensation Insurance, including Employers’ Liability Coverage, in
accordance with all applicable statutes of the State of Michigan.
c. Commercial General Liability Insurance on an “Occurrence Basis” with limits
of liability not less than $1,000,000 per occurrence and aggregate. Coverage shall
include the following extensions: (A) Contractual Liability; (B) Products and
Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form
General Liability Extensions or equivalent, if not already included; (E) Deletion of
all Explosion, Collapse, and Underground (XCU) Exclusions, if applicable.
d. Automobile Liability, including Michigan No-Fault Coverages, with limits of
liability not less than $1,000,000 per occurrence combined single limit for Bodily
Injury, and Property Damage. Coverage shall include all owned vehicles, all non-
owned vehicles, and all hired vehicles
e. Additional Insured: Commercial General Liability and Automobile Liability, as
described above, shall include an endorsement stating the following shall be
Additional Insureds: The City of Muskegon, all elected and appointed officials, all
employees and volunteers, agents, all boards, commissions, and/or authorities and
board members, including employees and volunteers thereof. It is understood and
agreed by naming the City of Muskegon as additional insured, coverage afforded
is considered to be primary and any other insurance the City of Muskegon may
have in effect shall be considered secondary and/or excess.
f. Cancellation Notice: Worker’s Compensation Insurance, Commercial General
Liability Insurance, and Automobile Liability Insurance, as described above, shall
be endorsed to state the following: It is understood and agreed Thirty (30) days,
Ten (10) days for non-payment of premium, Advance Written Notice of
Cancellation, Non-Renewal, Reduction, and/or Material Change shall be sent to:
City of Muskegon, Finance and Administrative Services Director, 933 Terrace St,
PO Box 536, Muskegon, Michigan 49443-0536.
g. Proof of Insurance Coverage. Contractor shall provide the City at the time the
contracts are returned for execution, certificates and policies endorsing the City as
additional insured as listed below:
i. Two (2) copies of Certificates of Insurance for Workers’ Compensation
Insurance, if applicable;
ii. Two (2) copies of Certificate of Insurance for Commercial General Liability
Insurance; and
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iii. If so requested, Certified Copies of all policies mentioned above will be
furnished.
If any of the above coverages expire during the term of this contract, Contractor
shall deliver renewal certificates and/or policies to City at least ten (10) days prior
to the expiration date.
h. Indemnity. Contractor shall indemnify and save harmless the City against and from
all costs, expenses, liabilities, claims, suits, action, and demands of every kind or
nature, including reasonable attorney fees, by or on behalf of any person, party, or
governmental authority whatsoever arising out of Contractor’s services performed
under this agreement, Contractor’s failure to perform under this agreement,
Contractor’s use of City equipment, or Contractor’s failure to comply with any
laws, ordinances, requirements, orders, directions, rules, or regulations of any
federal, state, county, or local governmental authority.
10. Income Tax Withholding. Contractor shall withhold income taxes from each employee,
and pay such tax in accordance with the City of Muskegon Income Tax Ordinance and all
applicable laws associated with that ordinance. Contractor shall require the same from
each subcontractor, consultant or vendor used in the performance of his duties and
obligations in this Agreement. City reserves the right to withhold payments otherwise due
to Contractor to assure compliance with this Agreement or to cure such noncompliance.
11. General Provisions.
a. Notices. Any notice that either party may give or is required to give under this
Agreement shall be in writing, specify the position, department and location
assigned, and, if mailed, shall be effective on the day it is delivered to the other
party at the other party’s address set forth in this Agreement or at any other address
that the other party provides in writing. Notices given in person are effective on the
day they are given. Notices to the City must copy the City Attorney at 601 Terrace
St., Muskegon, MI 49440.
b. Governing Law. This Agreement is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with, the laws of the State
of Michigan.
c. Assignment or Delegation. Neither party shall assign all nor any portion of its
rights nor obligations contained in this Agreement without express prior written
approval of the other party, which approval may be withheld in the other party’s
sole discretion.
d. Entire Agreement. This Agreement and the documents specified in section 1 shall
constitute the entire agreement, and shall supersede any other Agreements, written
or oral, that may have been made or entered into, by, and between the parties with
respect to the subject matter of this Agreement, and shall not be modified or
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amended except in a subsequent writing signed by the party against whom
enforcement is sought.
e. Binding Effect. This Agreement shall be binding upon, and to the benefit of, and
be enforceable by, the parties and their respective legal representatives, permitted
successors, and assigns.
f. Waiver. City may waive all or any portion of damages without prejudicing its
rights under this Agreement.
g. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity,
legality, and enforceability of the remaining provisions of this agreement shall not
in any way be impaired or affected.
h. Venue. The parties agree that, for purposes of any dispute in connection with this
Agreement, the Muskegon County District or Circuit Court shall have exclusive
personal and subject matter jurisdiction and venue.
i. Survival. All representations, warranties, and covenants in this Agreement shall
survive the signing of this Agreement.
j. Written Clarification. In the event that there are inconsistencies within the
Agreement, the Contractor shall immediately notify the City, in writing, for a
determination, interpretation, clarification and/or prioritization of the
inconsistencies.
City and Contractor have executed this Agreement on the date written next to their
signatures to be effective according to the term(s) stated in this document.
Date: ,2022 CITY OF MUSKEGON
By:
Ken Johnson, Mayor
And:
Ann Meisch, Clerk
Date: ,2022 BOYS AND GIRLS CLUB OF
THE MUSKEGON LAKESHORE
By:
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10th, 2023 Title: Community EnCompass Agreement
Submitted By: Matt Schwemin Department: Public Works
Brief Summary:
Staff is seeking Commission approval to extend the staffing agreement with Community
EnCompass through calendar year 2023.
Detailed Summary & Background:
Staff is proposing to extend the staffing agreement with Community EnCompass through calendar
year 2023. Community EnCompass provided staffing to assist with our seasonal staffing needs
during the 2022 calendar year, which was viewed positively by both parties. The original
agreement was approved at the April 12th, 2022 Commission Meeting and included a clause that
allowed for extension if approved by both parties. Staff is seeking commission approval for the
extension.
Goal/Focus Area/Action Item Addressed:
Blight Cleanup
Amount Requested: $21,000 Amount Budgeted: $21,000
Fund(s) or Account(s): 101-770-801 Fund(s) or Account(s): 101-770-801
Recommended Motion: Approve the extension of the staffing contract with Community
EnCompass and authorize the Mayor and Clerk to sign.
Approvals: Guest(s) Invited / Presenting
Immediate Division Head Information Technology
Other Division Heads Communication Yes
Legal Review No
For City Clerk Use Only:
Commission Action:
272
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager January 10th, 2022
(231)724-6724
FAX (231)722-1214
Community enCompass
Clerk 19 Hartford Ave
(231)724-6705
FAX (231)724-4178 Muskegon, MI 49442
Comm. & Neigh.
Services RE: Extension of Partnership Agreement
(231)724-6717 Community enCompass
FAX (231)726-2501
Computer Info. Dear Mrs. Mary McDonald:
Technology
(231)724-4126
FAX (231)722-4301 The City of Muskegon hereby requests that the Agreement be extended for the period of January 1,
2023 – December 31, 2023. The proposed budget for the extension period will be as listed in the
Engineering
(231)724-6707 previous contract with the discretion of the city. We have agreed this be taken into consideration
FAX (231)727-6904 with this extension.
Finance
(231)724-6713 This modification is requested for the following reason(s):
FAX (231)726-2325
Fire Department The City of Muskegon utilizes a contract to assist the City of Muskegon Parks Department.
(231)724-6795
FAX (231)724-6985 The extension proposes to request approximately 15 seasonal employees & 1 field
coordinator. Services include contract laborers for seasonal projects on an as-needed basis.
Human Resources
Co. (Civil Service)
The City intends to solicit bids for a new contract in the fall of 2023.
(231)724-6442 The City of Muskegon is an AA/EEO/ADA Employer.
FAX (231)724-6840
Income Tax Thank you for your consideration of this request.
(231)724-6770
FAX (231)724-6768
The City of Muskegon
Mayor’s Office
(231)724-6701
FAX (231)722-1214
Planning/Zoning
(231)724-6702 By: Ken Johnson, Mayor Date
FAX (231)724-6790
Police Department
(231)724-6750
FAX (231)722-5140
Public Works And: Ann Meisch, Clerk Date
(231)724-4100
FAX (231)722-4188
SafeBuilt Contractor
(Inspections)
(231)724-6715
FAX (231)728-4371
Treasurer
(231)724-6720 By: Anetri’a Conyers Date
FAX (231)724-6768
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration
(231)724-4106
Department of Public Works & Utilities, 1350 E. Keating Avenue, Muskegon, MI 49442
FAX (231)755-5290 http://www.shorelinecity.com
273
CITY OF MUSKEGON
CONTRACT FOR TEMPORARY STAFFING SERVICES
This Agreement is effective upon execution between the City of Muskegon, a Michigan
municipal corporation, of 933 Terrace Street, Muskegon, MI 49440 (“City”) and Community
enCompass, of 1105 Terrace Street, Muskegon, MI 49442 (“Contractor”), with reference to the
following facts:
RECITALS
A. Contractor requested to partner with the Public Works Department to maintain parks,
landscaping and other facilities throughout the city, primarily in the McLaughlin and
Nelson neighborhoods.
B. Contractor agrees to provide approximately ten to fifteen staff, with one supervisor per
team of four to five students, to support the Public Works Department in maintaining the
parks, landscaping and other facilities.
NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties agree as follows:
1. Services. Contractor shall provide the following services:
a. Picking up loose debris and refuse (trash), emptying refuse containers, cleaning
restrooms, maintaining landscaping by removing weeds and other undesirable
plants and items, and performing other cleaning and maintenance tasks as
designated by Public Works Department Staff in parks and other City-owned
properties. This effort is primarily envisioned at Marsh Field, McLaughlin
Community Park, Clara Shepherd Park, the Dog Park, and Campbell Field,
however other parks or properties may be assigned by Public Works Department
Staff in consultation with Contractor.
b. During the months of June, July and August, the contractor will provide up to 35
hours of labor per week per employee. During September and October, the
contractor will provide a reduced workforce to support critical efforts. The
employees are students and will not have as much availability during the school
year.
2. Equipment. The City shall supply safety equipment mandated for employees while on
assignment with the City, together with other equipment described herein.
a. The City shall supply hand-operated equipment that directly supports the tasks
described in this agreement and other duties as assigned by Public Works
Department Staff in consultation with the Contractor; examples of this equipment
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includes hand tools such as rakes and spades, and cleaning equipment such as
brushes and bottles. The City will provide materials to support the efforts, such as
paper towel(s), cleaning solutions and refuse bags.
b. If available for use, the City may supply a motor vehicle and/or utility trailer to
assist with refuse disposal, carrying equipment and staff relocation, based from the
City’s Public Works Facility at 1350 E. Keating Avenue, Muskegon, MI 49442, for
Contractor’s use. All operators of such a vehicle and/or utility trailer must be
licensed within the State of Michigan to operate a motor vehicle and carry a current
driver’s license. The City will provide materials to support the vehicle, such as
gasoline.
c. The City will perform any required maintenance on City-owned equipment. The
City reserves the right, in its sole discretion, to withdraw the use of equipment if
deemed in the best interest of the City. Any damage caused to rented or supplied
equipment is the responsibility of the Contractor.
d. In the event the City is unable to provide equipment, and upon written approval
from City, the Contractor may rent equipment that is deemed necessary for the
Services. The City will provide materials to support rented equipment, such as
gasoline and other consumables not included in rental costs. Maintenance of rented
equipment shall be the responsibility of the Contractor. The City will reimburse the
cost of the equipment rental at actual cost, including maintenance costs.
3. Expenses. Contractor shall be responsible to pay for all expenses incurred by Contractor
related to the performance of its duties under this Agreement, except as described in
Section 2.d of this agreement.
4. Contract Billing. City agrees to pay Contractor, in full consideration for the complete
performance of Contractor’s obligations under this Agreement:
a. Youth will be paid at a rate of $12/hour.
b. Supervisors will be paid at a rate of $15/hour.
c. For all labor, Contractor will bill a markup of 37.5% to cover taxes, insurance and
administrative costs. Expenses, when reimbursable, will be billed at actual cost.
5. Payment. Contractor shall submit detailed invoices on a monthly basis for the prior
month’s services. Payments according to this agreement are invoiced and paid on a
monthly basis. Requests for payment shall be submitted on a detailed invoice to the City
monthly for the previous month. The City agrees that payment shall be due on net 30-day
terms.
6. Specific Reservations. City reserves the right to discontinue its use of temporary
employees from contractor as it determines appropriate.
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7. Terms and Termination. This Agreement shall be effective on the date of execution, and
shall remain in full force and at the same terms through October 31, 2022, with an option
to renew for an additional term, if mutually agreed upon by both parties as memorialized
in a written and signed agreement.
8. Commencement and Damages.
a. Commencement. Contractor shall commence performance under this Agreement
upon its execution.
The City shall notify Contractor of any violation of the Agreement. It shall be the
duty of Contractor to remedy a Contractor violation.
Failure to perform pursuant to this Agreement for a period in excess of five (5)
consecutive scheduled, working days, or failure for a similar period, to perform in
the manner required, and provided such failure is not a result of war, insurrection,
riots, or acts of God, the City may, at its option and after written notice to
Contractor, utilize any or all of Contractor’s equipment used in performance of this
Agreement until such time the matter is resolved and the Contractor is performing
under the terms of the Agreement.
b. Appeal. The City’s determination regarding damages shall be final and binding on
both parties unless appealed, in writing, to the City Manager or his designee within
ten (10) working days after notice. The City Manager or his designee shall grant
Contractor an informal hearing upon such request. The decision of the City
Manager shall be final and binding.
9. Insurance and Indemnity.
a. City Insurance Requirement. The contractor, and any and all of their
subcontractors, shall not commence work under this contract until they have
obtained the insurance required under this paragraph, and shall keep such insurance
in force during the entire life of this contract. All coverage shall be with insurance
companies licensed and admitted to do business in the State of Michigan and
acceptable to City of Muskegon. The requirements below should not be interpreted
to limit the liability of the Contractor. All deductibles and SIRs are the
responsibility of the Contractor.
b. Worker’s Compensation Insurance, including Employers’ Liability Coverage, in
accordance with all applicable statutes of the State of Michigan.
c. Commercial General Liability Insurance on an “Occurrence Basis” with limits
of liability not less than $1,000,000 per occurrence and aggregate. Coverage shall
include the following extensions: (A) Contractual Liability; (B) Products and
Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form
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276
General Liability Extensions or equivalent, if not already included; (E) Deletion of
all Explosion, Collapse, and Underground (XCU) Exclusions, if applicable.
d. Automobile Liability, including Michigan No-Fault Coverages, with limits of
liability not less than $1,000,000 per occurrence combined single limit for Bodily
Injury, and Property Damage. Coverage shall include all owned vehicles, all non-
owned vehicles, and all hired vehicles
e. Additional Insured: Commercial General Liability and Automobile Liability, as
described above, shall include an endorsement stating the following shall be
Additional Insureds: The City of Muskegon, all elected and appointed officials, all
employees and volunteers, agents, all boards, commissions, and/or authorities and
board members, including employees and volunteers thereof. It is understood and
agreed by naming the City of Muskegon as additional insured, coverage afforded
is considered to be primary and any other insurance the City of Muskegon may
have in effect shall be considered secondary and/or excess.
f. Cancellation Notice: Worker’s Compensation Insurance, Commercial General
Liability Insurance, and Automobile Liability Insurance, as described above, shall
be endorsed to state the following: It is understood and agreed Thirty (30) days,
Ten (10) days for non-payment of premium, Advance Written Notice of
Cancellation, Non-Renewal, Reduction, and/or Material Change shall be sent to:
City of Muskegon, Finance and Administrative Services Director, 933 Terrace St,
PO Box 536, Muskegon, Michigan 49443-0536.
g. Proof of Insurance Coverage. Contractor shall provide the City at the time the
contracts are returned for execution, certificates and policies endorsing the City as
additional insured as listed below:
i. Two (2) copies of Certificates of Insurance for Workers’ Compensation
Insurance, if applicable;
ii. Two (2) copies of Certificate of Insurance for Commercial General Liability
Insurance; and
iii. If so requested, Certified Copies of all policies mentioned above will be
furnished.
If any of the above coverages expire during the term of this contract, Contractor
shall deliver renewal certificates and/or policies to City at least ten (10) days prior
to the expiration date.
h. Indemnity. Contractor shall indemnify and save harmless the City against and from
all costs, expenses, liabilities, claims, suits, action, and demands of every kind or
nature, including reasonable attorney fees, by or on behalf of any person, party, or
governmental authority whatsoever arising out of Contractor’s services performed
Community enCompass Temporary Staffing Services Agreement Page 4 of 6
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277
under this agreement, Contractor’s failure to perform under this agreement,
Contractor’s use of City equipment, or Contractor’s failure to comply with any
laws, ordinances, requirements, orders, directions, rules, or regulations of any
federal, state, county, or local governmental authority.
10. Income Tax Withholding. Contractor shall withhold income taxes from each employee,
and pay such tax in accordance with the City of Muskegon Income Tax Ordinance and all
applicable laws associated with that ordinance. Contractor shall require the same from
each subcontractor, consultant or vendor used in the performance of his duties and
obligations in this Agreement. City reserves the right to withhold payments otherwise due
to Contractor to assure compliance with this Agreement or to cure such noncompliance.
11. General Provisions.
a. Notices. Any notice that either party may give or is required to give under this
Agreement shall be in writing, specify the position, department and location
assigned, and, if mailed, shall be effective on the day it is delivered to the other
party at the other party’s address set forth in this Agreement or at any other address
that the other party provides in writing. Notices given in person are effective on the
day they are given. Notices to the City must copy the City Attorney at 601 Terrace
St., Muskegon, MI 49440.
b. Governing Law. This Agreement is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with, the laws of the State
of Michigan.
c. Assignment or Delegation. Neither party shall assign all nor any portion of its
rights nor obligations contained in this Agreement without express prior written
approval of the other party, which approval may be withheld in the other party’s
sole discretion.
d. Entire Agreement. This Agreement and the documents specified in section 1 shall
constitute the entire agreement, and shall supersede any other Agreements, written
or oral, that may have been made or entered into, by, and between the parties with
respect to the subject matter of this Agreement, and shall not be modified or
amended except in a subsequent writing signed by the party against whom
enforcement is sought.
e. Binding Effect. This Agreement shall be binding upon, and to the benefit of, and
be enforceable by, the parties and their respective legal representatives, permitted
successors, and assigns.
f. Waiver. City may waive all or any portion of damages without prejudicing its
rights under this Agreement.
g. Severability. Should any one or more of the provisions of this Agreement be
Community enCompass Temporary Staffing Services Agreement Page 5 of 6
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278
determined to be invalid, unlawful, or unenforceable in any respect, the validity,
legality, and enforceability of the remaining provisions of this agreement shall not
in any way be impaired or affected.
h. Venue. The parties agree that, for purposes of any dispute in connection with this
Agreement, the Muskegon County District or Circuit Court shall have exclusive
personal and subject matter jurisdiction and venue.
i. Survival. All representations, warranties, and covenants in this Agreement shall
survive the signing of this Agreement.
j. Written Clarification. In the event that there are inconsistencies within the
Agreement, the Contractor shall immediately notify the City, in writing, for a
determination, interpretation, clarification and/or prioritization of the
inconsistencies.
City and Contractor have executed this Agreement on the date written next to their
signatures to be effective according to the term(s) stated in this document.
Date: ,2022 CITY OF MUSKEGON
By:
Ken Johnson, Mayor
And:
Ann Meisch, Clerk
Date: ,2022 COMMUNITY ENCOMPASS
By:
Community enCompass Temporary Staffing Services Agreement Page 6 of 6
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279
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10th, 2023 Title: CLG Grant Application
Submitted By: Dan VanderHeide Department: Public Works
Brief Summary: Staff is seeking Commission approvals for a grant application related to conservation work
at Hackley Park.
Detailed Summary & Background: Staff has prepared a grant application to the State Historic Preservation
Office (SHPO) through their Certified Local Government (CLG) program for funds to complete
recommended conservation work at the five (5) sculptures within Hackley Park. The grant submittal
package requires a commitment of matching funds and a resolution of support. Both are attached along
with the conservators report that highlights the proposed work.
Staff is seeking $62,440 in grant funds to cover the cost of identified conservation work at the monuments
and proposing to match the grant application with an estimated $15,000 in cash expenses for equipment
rental. If awarded for funding the work would be completed during the Fall of 2023. Grant applications are
due on February 1st, 2023. Funds would be budgeted in 23/24 budget cycle if the grant is awarded with the
proposed cash contribution coming from the General Fund line item for Public Art Maintenance.
As noted in the Conservators Report we plan to also contract for work to be completed on the McKinley
Statue and the Kearny Statue as they are of similar age and condition. These two structures are ineligible
for grant funding (McKinley is privately owned, and Kearny is outside the designated historic district
boundary). The owners of the McKinley statue are aware of this and have agreed to participate in the cost
for that piece, the cost for the work at Kearny will be a city responsibility but is ineligible to count towards
the match.
Goal/Focus Area/Action Item Addressed: Blight Cleanup
Amount Requested: Amount Budgeted:
23/24 - $96,520 ($77,440 Grant Eligible) 23/24 - $96,520 ($77,440 Grant Eligible)
Fund(s) or Account(s): 101-901-801-092120 Fund(s) or Account(s): 101-901-801-092120
Recommended Motion: Approve the grant application to the CLG program and authorize the Clerk to sign
the Commitment of Matching Funds and Resolution of Support.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
280
Michigan Certified Local Government Program
FY2023 CLG Grant Application
Rehabilitation Planning and Rehabilitation Projects
PROJECT INFORMATION
Certified Local Government:
Project Name:
Property Name:
Property Address:
Historic Designation:
Rehabilitation Projects: Provide the name of the resource individually listed in the National Register of Historic Places or, if the resource
is listed as a contributing resource, provide the name of the National Register-listed district.
Rehabilitation Planning Projects: Provide the name of the resource that is listed in the National Register or has been determined eligible
for listing by SHPO. If the latter, also provide the approximate date (if known) that the resource was determined eligible.
Property Owner Name:
Primary Telephone Number: E-mail:
Brief Project Summary (no more than 1-2 sentences):
GRANT FUNDING REQUEST
CLG Grant Request: $ Grants are reimbursable, and the applicant must demonstrate availability of
the total project cost. Briefly describe the project funding source and kind:
CLG Match (NOT REQUIRED): $
Total Project Amount: $
CLG INFORMATION
Federal ID (EIN) Number:
UEI Number:
Certified Local Government Street Address:
City: Zip Code:
Project Coordinator Name:
This individual must have complete knowledge of the day-to-day activities with the proposed grant-funded work.
Primary Telephone Number: E-mail:
Project Coordinator Street Address:
City: Zip Code:
1
281
CLG LEGISLATIVE INFORMATION
This information is used to notify your elected officials if a grant is awarded.
U.S. Congressional District Number:
State Senate District Number:
State House of Representative District Number:
CLG SPONSORSHIP APPLICANT INFORMATION (IF APPLICABLE)
Complete ONLY if the CLG is applying on behalf of a non-profit organization or public entity.
Name of Non-profit or Public Entity:
Federal ID (EIN) Number:
Nonprofit or Public Entity Contact Name:
Telephone Number: E-mail:
Street Address:
City: Zip Code:
PROJECT INFORMATION
A. PROJECT GOALS
2
282
B. SCOPE OF WORK
3
283
C. PROJECT NEED
D. PROJECT URGENCY
E. PROJECT IMPACT
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F. PROJECT CONSIDERATIONS
Is the project related to one or more of the CLG’s goals and priorities as identified in the CLG’s last three annual reports
and/or most recent program evaluation? If so, describe.
Is the project related to one or more of the goals identified in the Michigan Statewide Historic Preservation Plan, 2020-
2025? If so, describe.
If applicable, describe the relationship of the project to other community planning and development, economic
development, revitalization initiatives, and/or cultural tourism efforts.
Are there other entities or partnerships that will benefit from the project?
How will the value of historic preservation be articulated through the project and how will the public be informed about
the project?
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PROJECT BUDGET
Provide a project budget that matches the items described in the scope of work. All grant funds are paid on an expense
reimbursement basis only. The applicant must have funds available for expenditures amounting to 100 percent of the
project cost at the time of submittal. The subgrantee will be reimbursed for eligible expenses incurred (up to the grant
amount) at the end of the project. SHPO will review and may make changes to the budget line items as submitted in the
application. The final budget, as approved by SHPO, will become an attachment to the grant agreement.
CASH IN-KIND PROJECT
WORK ITEMS CLG FUNDS
MATCH MATCH TOTAL
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
TOTAL COSTS: $ $ $ $
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WORK SCHEDULE
On the following page, provide a work schedule that includes major project milestones. Remember that work cannot begin
until the grant agreement is executed. Assume a July 2023 grant agreement date. Projects will have until September
30, 2025. This deadline is federally mandated. All project work, including billing and reporting, must be completed by
September 1, 2025, to facilitate project close-out by September 30. No extensions will be given.
Rehabilitation Planning Projects must include:
• Procurement
o Submit draft procurement materials to SHPO for approval (allow 14 days for review)
o Solicit bids
o Bids due
o Submit bids and rationale for bidder selection to SHPO for approval (allow 14 days for review)
o Submit draft consultant contract to SHPO for approval (allow 14 days for review)
o SHPO comments and recommends changes, as necessary, for consultant contract
o Executed contract submitted to SHPO
• Project Work
o Quarterly progress reports (due dates are January 15, April 15, July 15, and October 15)
o Project kick-off meeting with CLG, SHPO, and consultant(s)
o SHPO review of first and revised draft products (allow 30 days for review)
o SHPO review of final products (allow 30 days for review)
o Submission of completion report and reimbursement request to SHPO
Rehabilitation Projects must include:
• Procurement
o SHPO pre-work site inspection
o Submit draft procurement materials to SHPO for approval (allow 14 days for review)
o Solicit bids
o Bids due
o Submit bids and rationale for bidder selection to SHPO for approval (allow 14 days for review)
o Submit draft consultant contract to SHPO for approval (allow 14 days for review)
o SHPO comments and recommends changes, as necessary, for consultant contract
o Executed contract submitted to SHPO
• Project Work
o Quarterly progress reports (due dates are January 15, April 15, July 15, and October 15)
o Install project sign and submit photo documentation of sign to SHPO
o Deadline for SHPO to prepare historic preservation easement (allow 90 days)
o Begin construction
o Finish construction
o Sign easement, record at Register of Deeds, submit original recorded easement to SHPO
o SHPO final on-site inspection
o Submission of completion report and reimbursement request to SHPO
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Date Grant Agreement
July 2023 Grant agreement executed
Date Grant Project Work Items
Date Project Reporting
Every January 15, April 15,
Submit Quarterly Progress Report to SHPO for review while project is active
July 15, and October 15
Date Project Close-Out
September 1, 2025 Submit Completion Report and Reimbursement Request
September 30, 2025 SHPO review and approval of Completion Report and Reimbursement Request
October 2025 Subgrantee receives reimbursement
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CERTIFIED LOCAL GOVERNMENT AUTHORIZED SIGNATORY
Signature: Date:
_________________________________________________________________ ______________________
The grant application form must be signed and dated by the authorized contract signatory or another appropriate individual.
Printed Name and Title:
CLG Sponsorship (if applicable)
Signature: Date:
_________________________________________________________________ ______________________
The grant application form must be signed and dated by the authorized contract signatory or another appropriate individual.
Printed Name and Title:
APPLICATION CHECKLIST
Include the following exhibits to complete the CLG grant application and check the appropriate boxes to
indicate included exhibits. Please refer to the CLG Grant Manual for instructions.
☐ Exhibit A: Financial Certification
☐ Exhibit B: Resolution
☐ Exhibit C: Tax Incentive Certification
☐ Exhibit D: Deed and Ownership Information
☐ Exhibit E: Floodplain Certification
☐ Exhibit F: Letters of Support
☐ Exhibit G: Photographs, Maps, and Supporting Documentation
•
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SITE VISIT REPORT & PROPOSAL
473 W Fullerton Ave, Elmhurst IL 60126
847.491.0110 ThirdCoastConservation.com
Visit Date September 22nd to 23rd, 2021 To
Revision Date November 15th , 2022 Brenda Nemetz, Collections Manager
Submitted By Lakeshore Museum Center
Anna Weiss-Pfau, AIC-PA, Principal Conservator 630.308.0390 231-724-5532
3rdcoastconservation@gmail.com brenda@lakeshoremuseum.org
L.Liparini Studio ◆ Third Coast Conservation, LLC (LTC)
Project
Conservation & Maintenance Assessment of City of Muskegon
5 Hackley Park Bronze Sculptures and 2 Additional Bronzes
Conservation & Maintenance Assessment of Sculptures within the City of Muskegon
Scope
Third Coast Conservation was asked to assess 7 sculptures in Hackley Park in Muskegon, Michigan, 1 cannon, and 5 bronze
sculptures, and 7 additional sculptures within the city.
This Site Visit Report & Proposal Part 1 will cover the assessment, treatment proposals, and associated costs to conserve 7
Hackley Park Bronze Sculptures and cannon.
Part 2 will include maintenance and treatment recommendations for the additional sculptures.
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Hackley Park Sculptures
1.
Civil War Monument – Aka “Soldiers and Sailors Monument”
Joseph Carabelli 1889 Bronze / Granite
Dimensions of Monument: 80’ (H) 30’ (W) 30’(W) (estimated)
Liberty 12’
4 Figures 7’ 1’10” 1’10” (average)
This monument includes the Liberty sculpture at the top, with 4 other sculptures on the
lower portion including an Artilleryman, Infantryman, Calvaryman, and Sailor. More in-
depth descriptions are featured in the 1994, and 1997-1998 reports.
The monument was examined from a 60’ articulated mobile elevated work platform. It
was not sufficient to get very close to the Liberty statue. The use of a zoom lens on the
DSLR camera was able to aid in the examination. Also note that the sculpture was
examined in the rain, and so some areas of the sculptures may appear dark where they
are wet. Some areas of the sculptures were dry and thus able to be properly examined.
Previous Treatment
The previous treatment in 1997-1998 included both the bronze and the stone. The
bronze was washed to remove loosely adhered corrosion products, chemically
patinated with hot potassium sulfide, and hot waxed. The granite was considered in
excellent condition aside from a vertical crack on the stone that liberty is mounted to
and washed.
A Cleaning Report report from 2016 was provided and staff indicated that another
maintenance likely occurred in 2018-2019. This includes details of condition issues. It
was noted that 1 can of wax was used, and ¼ cup of detergent was used. It is not noted
what type of wax or detergent was used.
General Conditions pertaining to all 5 sculptures
All 5 sculptures appear in good condition from afar. Up close, blue-green oxidation has
begun to form in a spotted appearance, notably in areas of bolts, along the bottom
edges of the base, high points/edges of elements including the bottoms or folds in
pants, on top of each of the heads. This spotty appearance does seem consistent
throughout each of the sculptures. When the sculpture is examined completely dry, there may be areas with more
significant oxidized areas that may be unsightly. If this were the case, localized patination might be possible, but otherwise
since it is mostly evenly oxidizing, simply waxing may be appropriate.
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An unusual spotted and sometimes bubbling has appeared in areas where wax is often
heavily applied. This may be because of a heavy application of wax in that area or a
reaction due to a residue of a soap.
All sculptures have soiling and insect residues and nests.
The 2016 Cleaning Report indicates that the caulk is missing for several of the
sculptures. It may be possible that the conservators in the 1998 treatment never
applied caulk in order to provide for drainage of water.
Notable is that each sculpture was never given an Incralac coating. This was likely
chosen because it appears the previous work was performed from a lift or scaffolding and incralac is difficult to spray
appropriately in-situ. Additionally, it must be replaced when it begins to fail every 7 years, and this may be difficult for the
city to manage. Each sculpture was hot waxed during the 1998 treatment.
Stone
The monument’s stone (granite) was mostly in good condition. The most notable issue was that the stone, along with all of
the other stone monuments appeared to have an uneven shades of yellow discoloration. This was not mentioned in the
1997 treatment report or 1994 Outdoor Sculpture Condition Survey. This phenomenon might appear in images in the 1994
survey, however it is difficult to discern because the pdf is a photocopy.
On the side between the infantryman and the calvaryman there is a substantial amount of spalling on the side of the stone
that is not present in the 1994 images. It is the conservator’s opinion that this yellow discoloration may have been slowly
forming over time and is much more noticeable now than it was in 1994-1998. It is likely from a consolidation or water
repellent treatment that is ageing, and it may have begun to cause spalling in certain areas, including that mentioned
above. The original lead jointing and the crack on the stone top that were repaired in 1997-1998 appear in good condition.
Liberty
The Liberty sculpture was only examined from 60’, as the wrong lift size was delivered.
Structurally, the sculpture appears in good condition. The dark line along the back of the proper right arm that was
mentioned in 1994, was repaired in 1997-1998 treatment, and it appears to still be holding strong.
In the 2016 cleaning report, it was noted that the eagle was corroded on top and bottom; unfortunately this could not be
seen during this examination.
Spots of crusts forming in crevices is evident. There are more significant areas of oxidation forming in bright green spots,
including a yellow-green, likely from bird droppings.
Sailor (west)
Structurally the sailor appears in good condition. It was noted in the 1997-1998 treatment that the sailor’s cutlass (sword)
was replaced. This was not present in the 2016 report it was noted that a replacement is in the museum’s storage until a
conservator is hired to reattach it.
As mentioned in the general conditions, the sailor’s neckerchief has spots of bubbling in the wax layer. The hat also has
extensive green corrosion formation.
Artilleryman (south)
It was noted in the 2016 cleaning that there is a large spot of corrosion where the water drips on the statue from the
granite above. This area may require patina correction, as it has become green/blue.
Infantryman (east)
The back of the infantryman’s hat appears heavily oxidized, and this may be an area that requires some patina correction.
There is also extensive wax build up as well in crevices, which has also been previously noted.
Cavalryman (north)
Conditions consistent with the above and previous reports, including the missing nut on the back of the base.
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Treatment Questions
1. How much would the city like us to address oxidation (blue-green spotting)? Would a wax removal and replacement
with a tinted wax be sufficient, or just a spot treatment of more substantial oxidized areas, or full re-patination? Full
repatination would be a much more substantial operation, including scaffolding or the deinstallation of the figures. A
lacquer layer would also protect them further. The conservators would suggest the spot treatment, with a tinted wax
at this time, as they have not completely oxidized and from the ground the oxidation is hard to see, but this may be a
consideration for the future.
Treatment Proposal
Setup needs: 1 x 80’ lift and 1 x 40-60’ lift or scaffolding
1. Document before, during, and after treatment in written and photographic methods
2. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
to remove dirt, dust, grime, accretions, followed by thorough water washing.
3. Come prepared to perform minor structural repair and patching, as well as toning of previous fills if they have
degraded.
4. Remove wax completely on the entire sculptures with appropriate solvents.
5. Wash sculptures with distilled water to ensure any pervious soaps applied to the sculptures is removed or
deactivated.
6. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas, especially on the Liberty sculpture.
7. Perform minor patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas.
i. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
Testing will be performed to determine the timeline upon which the potassium sulfide should be
rinsed with distilled water.
8. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
9. Hot-wax sculptures with Butcher’s Bowling Alley Wax.
2.
Abraham Lincoln
Charles Henry Neihaus 1899 Bronze / Granite
Dimensions: Estimated 5’ (H) x 4’ (W) with 7’ tall base
Condition
Object is in good condition overall.
On the surface there is red paint on the top of the base near the feet in small areas.
There is significantly more oxidation over several surfaces and areas than the other
sculptures in Hackley Park. This sculpture may be interacted with more often with the
public, as it is much more climbable.
The oxidation is along both of his legs, cloak, upper folds of his clothing and hair, the top
surface of the base.
The wax layer appears to be becoming cloudy overall by most significantly along the back of
the chair.
Review of the 2016 report does not indicate any major changes.
Stone
There appears to be the same yellowing of the stone as the Civil War Memorial, including
some areas of spalling on the base.
Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
1. Document before, during, and after treatment in written and photographic methods
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2. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
to remove dirt, dust, grime, accretions, followed by thorough water washing.
3. Remove red paint with appropriate solvents.
4. Come prepared to perform minor structural repair and patching as needed.
5. Remove wax completely on the entire sculpture with appropriate solvents.
6. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas.
7. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas including
on Lincoln’s cloak and legs, top surface of the base.
i. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
Testing will be performed to determine the timeline upon which the potassium sulfide should be
rinsed with distilled water.
8. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
9. Hot-wax sculpture with tinted Butcher’s Bowling Alley Wax.
3.
Ulysses S. Grant
J. Massey Rhind 1899 Bronze/Granite
Dimensions: Estimated 7’ (H) with 7’ tall base
Condition
Good condition. More areas of oxidation including on the strap, along the perimeter
of the base. None disfiguring. Pooling
on top of the base in oxidized iron, so there is likely an area of steel exposed that is
causing this pooling; this was noted to have been growing in the 2016 notes.
Same issues with the base.
It was noted in the 2016 notes that the sword tip and ring from the sword strap were
missing, and these on file in the Museum until a conservator can reattach them. No
other new condition notes visible.
Stone
The same issues as noted for the other stone however this stone appears more
significant drip-like yellow discoloration, as well as from the ferrous oxidation, and a
blue/green along the top edge of the stone.
Additionally, noted in 2016 was a white crystalline material along the edge. This
should be tested for salts or lead.
Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
1. Document before, during, and after treatment in written and photographic
methods
2. Test white crystalline material for lead or salts.
3. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
to remove dirt, dust, grime, accretions, followed by thorough water washing.
4. Come prepared to perform minor structural repair and patching as needed if the city would like the missing
elements reattached.
5. Remove wax completely on the entire sculpture with appropriate solvents.
6. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas.
7. Excavate area of ferrous corrosion and treat with tannic acid.
8. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas if
necessary.
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i.
Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
Testing will be performed to determine the timeline upon which the potassium sulfide should be
rinsed with distilled water.
9. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
10. Hot-wax sculpture with Butcher’s Bowling Alley Wax.
4.
William Tecumseh Sherman
J. Massey Rhind 1899 Bronze/Granite
Dimensions: Estimated 7’ (H) with 7’ tall base
Condition
This sculpture in in good condition. The wax is ageing around the base, but this layer
seems in otherwise good condition. There is more insect activity with this
sculpture, including spider webs, growth and white spots.
Highpoints exhibit some oxidation but not as significantly as other sculptures in this
group. Corrosion particularly significant along the bottom edges where the
sculpture meets the base.
Stone
The same issues as noted for the other stone however this stone has substantially
more biological growth on it compared to the others. May suggest washing with D2
to kill the biological growth. The yellowing is more drip-like, as well as from the
ferrous oxidation, and a blue/green along the top edge of the stone.
Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
1. Document before, during, and after treatment in written and
photographic methods
2. Wash with a power washer, followed by water washing with 1% Orvus
(detergent) and synthetic bristle brushes to remove dirt, dust, grime, accretions, followed by thorough water
washing.
a. This treatment would also include the base, followed by the use of D2 biological solution to try to
reduce the biological growth on the base.
3. Come prepared to perform minor structural repair and patching as needed.
4. Remove wax completely on the entire sculpture with appropriate solvents.
5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas.
6. Excavate area of ferrous corrosion and treat with tannic acid.
7. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas if
necessary. This is not likely as no areas were particularly distracting, but it will be prepared for.
a. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
Testing will be performed to determine the timeline upon which the potassium sulfide should be
rinsed with distilled water.
8. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
9. Hot-wax sculpture with Butcher’s Bowling Alley Wax.
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5.
William McKinley
Charles Henry Niehaus/Joseph Carabelli 1899 Bronze/Granite
Condition
Structurally stable.
Small areas of oxidation beginning in crevices, as well as significant biological growth
particularly along the interior of the jacket.
The sculpture overall exhibiting significant deterioration in a previously applied wax
layer, as it appears to be blooming throughout, particularly the jacket.
White oxidation running down the side of the jacket along the arm. Proper left
shoulder may have an additional darkening phenomenon occurring, potentially a
biological growth or a past treatment.
Stone
The stone base is in good condition and had just been power washed when the
conservator arrived.
This sculpture was not maintained by the city or museum in previous years.
Treatment Proposal
Setup needs: ladders, rolling scaffold – this sculpture is located on top of a stone
monumental base platform with a flower bed immediately behind the platform, so a
lift would likely not be desired. Conservators will attempt the work with a rolling scaffold with outriggers and ladders from
the front
1. Document before, during, and after treatment in written and photographic methods
2. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
to remove dirt, dust, grime, accretions, followed by thorough water washing.
3. Come prepared to perform minor structural repair and patching as needed if the city would like the missing
elements reattached.
4. Remove wax completely on the entire sculpture with appropriate solvents.
5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas.
6. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas if
necessary. This was not visible but conservators will be prepared if needed.
i. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
Testing will be performed to determine the timeline upon which the potassium sulfide should be
rinsed with distilled water.
7. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
8. Hot-wax sculpture with Butcher’s Bowling Alley Wax.
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6.
General Philip Kearny
Henry Kirke Brown 1901 Bronze/Granite
Located in Pocket park
Dimensions: Estimated 7’ (H) on 7’ tall stone base
Condition
Object viewed in the rain.
Object is in generally good condition. Oxidation was more significant along edges and
highpoints, as well as corrosion along the base of the bronze around the pedestal.
As noted in the 2016 notes, there is a missing sword strap.
This wax appears in better condition, and may not require the wax to be completely
removed, but it may required when able to be viewed up close in drier conditions.
Treatment Proposal
Setup needs: ladders, rolling scaffold with outriggers
1. Document before, during, and after treatment in written and photographic
methods
2. Wash with a power washer, followed by water washing with 1% Orvus
(detergent) and synthetic bristle brushes to remove dirt, dust, grime, accretions,
followed by thorough water washing.
3. Come prepared to perform minor structural repair and patching as needed if the
city would like the missing elements reattached if they have the strap.
4. Remove wax completely on the entire sculpture with appropriate solvents.
5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas.
6. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
7. Hot-wax sculpture with Butcher’s Bowling Alley Wax.
7.
Admiral Farragut
Charles Henry Niehaus 1899 Bronze/Granite
Dimensions: Estimated 7’ (H) on 7’ tall base
Condition
Good condition overall. Areas of oxidation appearing on the proper left leg, as well as
other high points like the cloak’s edge and top of binoculars.
The strap on the back appears to be hanging inappropriately and has damaged part of
the cloak. This should be checked against historic images to see if this is to be
reassembled in a different way. Part of that strap is scratched as well and has a green
oxidation forming.
Bright green, likely bronze disease (bright green corrosion) forming under the back of
the hair.
Conservator does not see a rusty area on the back as noted in 2016 but it could be the
lighting and should be examined further once a lift is procured.
Stone
Same yellow discoloration phenomenon on the base as the other monuments.
Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
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1. Document before, during, and after treatment in written and photographic methods
2. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
to remove dirt, dust, grime, accretions, followed by thorough water washing.
3. Come prepared to perform minor structural repair and patching as needed if the city would like the missing
elements reattached if they have the strap.
4. Remove wax completely on the entire sculpture with appropriate solvents.
5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
likely be present in small areas.
6. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
7. Come prepared to do additional patina work but likely not necessary.
8. Hot-wax sculpture with Butcher’s Bowling Alley Wax.
Images
Images are available for download from the following Google Drive link. The link will expire in 2 months from the date of
this report.
https://drive.google.com/drive/folders/1jya7eFaEv273u8hb3ZjC1GeOWXsW-hdT?usp=sharing
Estimate
City to provide quick coupler and water hookup for Hackley Park.
Equipment & Rental Requirements
Object Object Name Treatment Proposed Major Equipment Needed Rental Costs
#
1 Civil War Monument Wax removal, minor Scaffolding or 80’ lift rental Provided by city
2 Abraham Lincoln corrosion treatment 20’ Lift Rental Provided by city
3 Ulysses S. Grant and patina
4 William Tecumseh correction, hot wax
Sherman
7 Admiral Farragut
5 William McKinley Ladders/rolling scaffolding Provided by city
6 General Philip Kearny
Total $0
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Project Costs
Trip 1 – Treatment: 4 perimeter Hackley park sculptures
Equipment: City will provide 2 x 34’ lifts, ladders, water hookup
Daily Rate $920/per 4 people 5 days 18,400
Transportation, 2-3 vehicles 408 miles $0.58/mile 2 cars 480
Administration/reports/documentation 900
Per Diem $60 4 people 5 days 1200
Hotel $250 4 nights 4 rooms 4000
Total 1/3 $21,680
Trip 2 – Treatment: Civil War monument with other crew
Equipment City will provide bring baker scaffolding with outriggers and 1 x 34’ lift (or 2 lifts), ladders, water
hookup
Daily Rate $920/per 3 people 5 days 13,800
Transportation, 2-3 vehicles 408 miles $0.58/mile 2 cars 480
Administration/reports/documentation 900
Per Diem $60 4 people 5 days 900
Hotel $250 4 nights 3 rooms 3000
Total 2/3 19,080
Trip 3— Treatment: Civil war monument
Equipment: City will provide 1 x 80’ lift and 1 x 34’ lift, or full monument scaffolding, water hookup
Daily Rate $920/per 4 people 5 days 18,400
Transportation, 2-3 vehicles 408 miles $0.58/mile 2 cars 480
Administration/reports/documentation 900
Per Diem $60 4 people 5 days 1200
Hotel $250 4 nights 4 rooms 4000
Total 3/3 $21,680
TOTAL: Hackley Park Sculptures: $62,440
Trip 4— Treatment: McKinley and Kearny
Equipment: City will provide 1 x 80’ lift and 1 x 34’ lift, or full monument scaffolding, water hookup
Daily Rate $920/per 3 people 5 days 13,800
Transportation, 2-3 vehicles 408 miles $0.58/mile 2 cars 480
Administration/reports/documentation 900
Per Diem $60 3 people 5 days 900
Hotel $250 4 nights 3 rooms 3000
Total 3/3 $19,080
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City of Muskegon
COMMITMENT OF MATCHING FUNDS for
Muskegon Historic District Monument Conservation
WHEREAS, Muskegon City Commission commits the necessary matching funding for an application
titled, “Muskegon Historic District Monument Conservation” to the Michigan State Historic Preservation
Office within the 2023 Certified Local Government (CLG) Grant Program for completion of conservation
work on the monuments within Hackley Park; and,
WHEREAS, the City of Muskegon desires to ensure continued care for the monuments within the site;
and,
WHEREAS, the proposed application is supported by the Historic District Commission; and,
WHEREAS, funding is available from the State Historic Preservation Office to support conservation
projects of this nature, and
WHEREAS, the City of Muskegon is hereby making a financial commitment to the project in the amount
of $15,000 matching funds in cash from the Cities General Fund should the project be selected for grant
award; and
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners hereby authorizes
and supports submission of a 2023 CLG Grant for $62,440 for completion of Muskegon Historic District
Monument Conservation, and further resolves to make available its financial obligation amount of
$15,000 for a total project cost of $77,440 during the Cities 2023-2024 fiscal year.
Yeas:
Nays:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
January 10th, 2023.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
300
City of Muskegon
RESOLUTION OF SUPPORT for
Muskegon Historic District Monument Conservation
WHEREAS, THE City Of Muskegon will file an application to the Michigan State historic Preservation
Office (SHPO) for the Certified Local Government Grant program in the amount of $62,440 for the
Muskegon Historic District Monument Conservation, and;
WHEREAS, the City of Muskegon acknowledges that the Certified Local Government Grant Program is
an expense reimbursement program. The City of Muskegon authorizes expenditures in the amount of
$77,440 for the project work, with funds drawn from the City General Fund, and;
WHEREAS, the City of Muskegon acknowledges that reimbursement will be made upon completion of
final project work, SHPO acceptance of the final completion report, SHPO audit and acceptance of
financial documents for eligible costs and SHPO acceptance of a historic preservation easement recorded
at the Register of Deeds, and;
WHEREAS, upon approval of the application by the SHPO the DPW Director shall be authorized to sign
the grant agreement, any necessary grant agreement amendments, and other agreement-related
documents, and;
WHEREAS, the DPW Director is appointed as the Grant Project Manager who will oversee the day-to-
day grant management and grant administration duties, including vendor selection and coordinating the
payment of vendor invoices;
WHEREAS, upon completion of the project, the DPW Director shall be required to and is authorized to
sign the required historic preservation easement and record it at the County Register of Deeds before the
grant reimbursement will be processed by the SHPO;
NOW, THEREFORE LET IT BE RESOLVED, that City of Muskegon directs the DPW Director to file
an application for a grant from the SHPO Certified Local Government Program for $62,440; and
FURTHER, LET IT BE RESOLVED, that the DPW Director be authorized to sign the grant application
and any additional grant documentation, and to take any additional administrative actions necessary to
implement this resolution.
Yeas:
Nays:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
January 10th, 2023.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10th, 2023 Title: Treasury Office Fire Doors
Submitted By: Dan VanderHeide Department: Public Works
Brief Summary:
Staff is seeking Commission approval to award replacement of the fire doors at the Treasury Desk.
Detailed Summary & Background:
The existing fire safety doors at the Treasury Department that automatically deploy in the event of
a fire alarm are currently non-functional and in need of replacement. These doors are a building
code requirement for compliance and need to be replaced. Staff solicited bids for the project and
bids were received as follows and attached:
Overhead Door - $45,626.00
Firefighter Sales and Service - $60,000.00
Garage Door Specialist – Did Not Bid
Quality Door – Did Not Bid
Staff estimates the need to expend an additional $8,000 to complete the miscellaneous items that
are not included in the original bid. These items will be procured at the staff level in accordance
with the applicable provisions of the City Purchasing Policy. This item was anticipated in the 22/23
budget cycle and funds will be drawn from the original budget line item 101-801-901-092109
Goal/Focus Area/Action Item Addressed: N/A
Amount Requested: $45,626.00 Amount Budgeted: $60,000.00
Fund(s) or Account(s): 101-801-901-092109 Fund(s) or Account(s): 101-801-901-092109
Recommended Motion:
Approve the low bid from Overhead Door in the amount of $45,626.00 for the replacement of the
Treasury Department Fire Doors.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
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FIRE-FIGHTER SALES & SERVICE, INC.
3015 Madison Avenue, SE
Grand Rapids, MI 49548
Phone: 616-452-2184 Fax: 616-452-8886
Email: ffsales@firefightersales.com
Web: www.firefightersales.com
April 7, 2022
Muskegon City Hall
933 Terrace ST
Muskegon , Mi 49440
Re: Fire Door
Hi Terry,
Fire Fighter Sales and Service is pleased to provide you with a proposal:
(2) Amarr Cookson 17'0" x 17'0" Model ERD10 Rolling Fire Doors,
AlarmGard Motors, (1) door is left hand drive, (1) door is right hand
drive, hook to existing fire system, grey, mounted to steel, take out and
haul away exising doors, install new doors and openers. Bulkheads and
all building materials surrounding and enclosing door have to be
removed by others before door install.
*****All high and low voltage wiring by others, not included*****
*****Submittals and shop drawings available on request*****
Our Price as Described: $60,000.00 ( Sixty Thousand Dollars)
We appreciate you looking to Fire Fighter Sales and Service for all your fire protection needs. Please feel free to
contact me anytime with any questions or concerns at BryanH@firefightersales.com or 616-452-2184
Thanks,
Bryan Hatchew
Fire Fighter Sales & Service
Website Fire Fighter Sales and Service
FIRE ALARM SYSTEMS ∙ FIRE SUPPRESSION SYSTEMS ∙ NEW FIRE EXTINGUISHERS ∙ FIRE EXTINGUISHER SERVICE ∙ FIRE HOSE
SMOKE & HEAT DETECTORS ∙ EMERGENCY & EXIT LIGHTING ∙ HYDROSTATIC TESTING ∙ FIRE PROTECTION CONSULTING & TRAINING
305
Acceptance of Proposal
All outstanding invoices are subject to a 1.5% monthly finance charge on any balance past due over thirty (30)
days. Until all amounts due under this proposal agreement or any amendments thereof have been paid. Fire
Fighter Sales and Service, Inc. shall retain its security interest in all equipment parts, smallwares, accessories,
attachments, additions, and all replacements of them installed, affixed to or used in connection herewith, and, if
the buyer sells or otherwise disposes of such collateral in violation of the terms of this agreement, in proceeds of
such sale or disposition. If buyer fails to pay, when due, any amount due to the seller, the seller may enter any
premises and without breach of the peace take possession of any or all of the collateral hereunder and exercise the
rights on default of a secured party under the uniform commercial code. Except as otherwise provided herein, this
proposal does not include any charge for electrical wiring or plumbing and is subject to acceptance by buyer and
seller within thirty (30) days from the date hereof and only in accordance with the terms stated.
I agree to the scope of work, price, terms and exclusions hereof and agree to purchase described goods and
services as proposed hereby.
Customer Authorized Agent Signature Date
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FIRE-FIGHTER SALES & SERVICE, INC.
3015 Madison Avenue, SE
Grand Rapids, MI 49548
Phone: 616-452-2184 Fax: 616-452-8886
Email: ffsales@firefightersales.com
Web: www.firefightersales.com
FIRE ALARM SYSTEMS ∙ FIRE SUPPRESSION SYSTEMS ∙ NEW FIRE EXTINGUISHERS ∙ FIRE EXTINGUISHER SERVICE ∙ FIRE HOSE
SMOKE & HEAT DETECTORS ∙ EMERGENCY & EXIT LIGHTING ∙ HYDROSTATIC TESTING ∙ FIRE PROTECTION CONSULTING & TRAINING
307
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10th, 2023 Title: Dollar General Utility Easement
Submitted By: Dan VanderHeide Department: Public Works
Brief Summary:
Staff is seeking Commission approval for a utility easement within 381 E. Laketon Avenue, where a soon-
to-be rebuilt Dollar General store is making site changes.
Detailed Summary & Background:
Staff requested and the developer provided a utility easement document for rights across the rear parking
lot of 381 Laketon Avenue, which is being rebuilt as a Dollar General store. The easement documents and
related sketches are included in the packet. The easement will formalize property and maintenance rights
for a long-standing sanitary sewer and storm sewer corridor (in a former alley).
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion:
Approve the public utility easement agreement at 381 E. Laketon Avenue and authorize the Clerk to sign on
the City’s behalf.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
308
PUBLIC UTILITY EASEMENT
THIS PUBLIC UTILITY EASEMENT (“Agreement”) dated ______________, 2022
between MIDWEST V, LLC, a Michigan limited liability company, whose address is 1435
Fulton Street, 2nd Floor, Grand Haven, Michigan 49417 (“Grantor”) and the City of
Muskegon, a Michigan municipal corporation, whose address is 933 Terrace St.,
Muskegon, Michigan 49440-1397 (“City”).
Recitals:
A. Grantor owns a certain parcel of real estate that is located in the City of Muskegon,
County of Muskegon, State of Michigan, which is more specifically described on
the attached Exhibit A (“Property”).
B. The City desires to obtain an easement under, across and through a portion of the
Property.
C. Grantor agrees to grant to the City a utility easement under, across and through a
portion of the Property for the purposes as set forth in this Agreement.
THEREFORE, in consideration of the mutual covenants, conditions and agreements set
forth below, the parties hereto agree as follows:
1. Grant of Easement. In consideration of less than One Hundred Dollars ($100.00)
plus other valuable consideration, Grantor grants and conveys to the City a
permanent, non-exclusive easement and right-of-way under, across and through
that portion of the Property as described in Exhibit B (“Easement Area”).
2. Purpose of the Easement. The City shall use the Easement Area for the purpose
of constructing, operating, maintaining, repairing, improving or replacing the
pipelines, connections, leads and all other components of the City’s sanitary sewer
and storm sewer systems placed within the Easement Area (“Utility Activities”).
3. Access to the Easement Area. The City shall have the right of ingress and egress
to the Easement Area from the public right-of-way, and, if necessary, through
areas of the Property that are immediately adjacent to the Easement Area, in order
to carry out the Utility Activities, subject to the following conditions:
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a) Perform the Utility Activities without cost to Grantor and in such a manner as
not to unreasonably interfere with Grantor’s use of or the business operations
conducted on the Property.
b) Restore the Easement Area (and any other portions of the Property that are
disturbed or damaged by the City) without cost to Grantor after completion of
the Utility Activities to the same condition as existed before any such Utility
Activity was performed. If necessary, such restoration shall include re-grading
and reseeding any lawn areas disturbed or damaged by the City’s activities.
c) Exercise reasonable care to protect any fixed structures, landscaping and other
improvements on the Property during the performance of Utility Activities.
d) Grantor agrees not to construct any buildings or permanent structures on or
within the Easement Area, unless prior written approval is given by the City for
a particular building or structure.
4. Authority of Representatives. The parties represent and warrant to the other that
this Agreement and its execution by the individual(s) on its behalf are authorized
by members or governing body of that party.
5. Binding Effect. This Agreement shall bind the parties, and their successors and
assigns. The parties do not intend to confer any benefits on any person, firm,
corporation, or other entity which is not party to this Agreement.
6. Amendment. This Agreement shall not be amended or modified except in writing
signed by both parties.
7. Governing Law. This Agreement is governed under applicable Michigan law. Both
parties had the assistance of legal counsel in the negotiation and preparation of
this Agreement. Therefore, no construction or ambiguity of this Agreement is
resolved against either party.
8. Exemption from Transfer Tax. This Agreement is exempt from transfer tax
pursuant to MCL 207.505(a) and MCL 207.526(a).
[Remainder of Page Left Intentionally Blank. Signature Page Follows.]
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310
MIDWEST V, LLC,
a Michigan limited liability company
By: _______________________
Name:_____________________
Its:________________________
STATE OF MICHIGAN )
) ss.
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me on ___________ _____,
2022, by ______________________, the ____________ of Midwest V, LLC, a Michigan
limited liability company, on behalf of said limited liability company.
Print Name:
Notary Public County, MI
My commission expires:
Acting in ________________________ County
CITY OF MUSKEGON,
a Michigan municipal corporation
By: __________________________
Name:________________________
Its:___________________________
STATE OF MICHIGAN )
) ss.
COUNTY OF MUSKEGON )
The foregoing instrument was acknowledged before me on ___________ _____,
2022, by ____________________, the ______________ of the City of Muskegon, a
Michigan municipal corporation, on behalf of said municipal corporation.
Print Name:
Notary Public County, MI
My commission expires:
Acting in Muskegon County
Prepared By & After Recording Return To:
Midwest V, LLC
Scott M. Knowlton, Esq.
1435 Fulton St., 2nd Floor
Grand Haven, MI 49417
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311
EXHIBIT A
Property
Parcel 1:
The East 15 feet of Lot 9 and entire Lots 10, 11, 12, 13 and 14 of VanDams Subdivision,
of North 144 feet of Lot 1 of Block 1 of R. P. Easton's Second Subdivision of part of
Section 32, Town 10 North, Range 16 West, City of Muskegon, Muskegon County,
Michigan, as recorded in Liber 6 of Plats, Page 16, Muskegon County Records.
Together with the vacated East and West alley running from Smith to Woods Streets,
lying South of the South line of said lots and adjacent thereto.
Parcel 2:
Lots 11 and 12 of Block 1 of Subdivision of part of Lot 1, Block 1 of R. P. Easton's Second
Subdivision of part of Section 32, Town 10 North, Range 16 West, City of Muskegon,
Muskegon County, Michigan, except the North 20 feet of the South 25 feet of said Lots
11 and 12; also the vacated North and South alley lying between said Lots 11 and 12 of
Block 1 of Subdivision of part of Lot 1, Block 1 of said R. P. Easton's Second Subdivision,
except the South 25 feet thereof.
Parcel 3:
The North 20 feet of the South 25 feet of Lots 11 and 12 of Block 1 of Subdivision of part
of Lot 1 of Block 1 of R. P. Easton's Second Subdivision and the South 25 feet of the
vacated North and South alley lying between the North and South lines of said Lots 11
and 12, being the lands conveyed to the City of Muskegon by Deeds recorded in Liber
654, Page 563, and Liber 658, Page 168, in the Office of the Register of Deeds for said
County of Muskegon.
The property address and tax parcel number listed below are provided solely for
informational purposes, without warranty as to accuracy or completeness. If the
information listed below is inconsistent in any way with the legal description listed above,
the legal description listed above shall control.
Property Addresses: 381 E. Laketon Avenue, Muskegon, MI 49442
1827 Wood Street, Muskegon, MI 49442
Tax Parcel Nos.: 61-24-810-000-0010-00
61-24-762-001-0011-00
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Sale of 1320 Spring
Street
Submitted By: LeighAnn Mikesell Department: City Manager
Brief Summary: Staff is requesting approval of a purchase agreement for 1320 Spring Street.
Detailed Summary & Background:
1320 Spring Street was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is $2,580 over asking price and is contingent on the sale of
the buyer’s current home. The earnest money deposit was increased because the offer is
contingent. There are no seller concessions.
The home will serve as a model home until mid-March.
Goal/Focus Area/Action Item Addressed:
Create an environment that effectively attracts new residents and retains existing residents by
filling existing employment gaps, attracting new and diverse businesses to the city, and expanding
access to a variety of high-quality housing options in Muskegon. Diverse housing types
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the purchase agreement for 1320 Spring Street and authorize
the City Manager Jonathan Seyferth or Deputy City Manager LeighAnn Mikesell to sign.
Approvals: Guest(s) Invited / Presenting
Immediate Division Head Information Technology
Other Division Heads Communication Yes
No
Legal Review
For City Clerk Use Only:
Commission Action:
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WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
# 1
DATE: 12/11/2022 , (time) MLS # 22050191
SELLING OFFICE: West Urban Realty LLC BROKER LIC.#: 6505429509 REALTOR® PHONE: 616-366-2459
LISTING OFFICE: West Urban Realty LLC REALTOR® PHONE: 6163662459
1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference
to "time" refers to local time.
2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
Real Estate Agency Relationships. The selling licensee is acting as (choose one):
Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller)
Transaction Coordinator
Primary Selling Agent Name: Mariana Murillo VandDam Email: mariana@westurbanrealtymi. Lic.#: 6506015435
Alternate Selling Agent Name: Email: Lic.#:
3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
Buyer has received the Seller’s Disclosure Statement, dated . Seller certifies to Buyer that the Property
is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any
changes in the content of the disclosure statement.
Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
registered mail. Exceptions: Builder warranty started from the date of occupancy permit from the City of Muskegon
Seller is exempt from the requirements of the Seller Disclosure Act.
4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
and will be an integral part of this Agreement.
5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon ,
County of Muskegon County , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
1320 Spring Street, Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 BLK 269
PP# 24-205-269-0002-00 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) na division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ $175,480
one hundred seventy-five thousand four hundred eighty U.S. Dollars
7. Seller Concessions, if any: 0
8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a type (year) mortgage in the amount of % of the Purchase Price
bearing interest at a rate not to exceed % per annum (rate at time of loan application), on or before the date the sale is
to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
process the application, within days after the Effective Date, not to impair Buyers’ credit after the date such loan if
offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a
condition of financing. Buyer agrees does not agree315to authorize Buyer’s Agent/Dual Agent to obtain information from
©Copyright, West Michigan REALTOR® Associations
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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:
contingent on loan against their current home. Seller gives buyer 60 days to process and close on loan.
SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE
In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
within 48 hours. Seller is advised to seek professional advice regarding the credit report.
$ upon execution and delivery of a
form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
will be payable in monthly installments of $ or more including interest at % per annum,
interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and
paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:
EQUITY (choose one of the following): Formal Assumption or Informal Assumption
Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest
in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above
provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer
agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
(10) days after the Effective Date of this Agreement. Exceptions:
OTHER:
9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:
A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
Money Deposit.
IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
of a sale or exchange of Buyer’s property located at
on or before . Seller will have the right to continue to
market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:
10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
Microwave, dishwasher, fridge, stove, washer, and dryer, central l air
but does not include:
1320 Spring Street, Muskegon, MI 49442 12/11/2022
Subject Property Address/Description Date Time
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11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
expended through normal use. Exceptions:
12. Assessments (choose one):
If the Property is subject to any assessments,
Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
of any installment arrangements), except for any fees that are required to connect to public utilities.
Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
and pay all other installments of such assessments.
13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all
taxes billed after those addressed below.
Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
property is transferred.
No proration. (Choose one):
Buyer Seller will pay taxes billed summer (year);
Buyer Seller will pay taxes billed winter (year);
Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
and prorated to the date of closing with Seller paying for January 1 through the day before closing.
Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears.
Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:
14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense,
an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
other local governmental authority, if applicable) protocol.
If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-
is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
Buyer will proceed to closing according to the terms and conditions of this Agreement.
Other:
na
15. Inspections & Investigations:
Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
Buyer’s responsibility and expense.
Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
All inspections and investigations will be completed within ____ days after the Effective Date. If the results of Buyer’s inspections and
investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate
this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those
unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
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deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal
or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s
receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a
refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will
be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this
Agreement.
Buyer has waived all rights under this Inspections & Investigations paragraph.
Exceptions:
16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
ordinances, if applicable.
17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
of this Agreement. Exceptions:
18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
and the location of improvements thereon.
Buyer or Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
Deposit.
No survey. Buyer has waived all rights under this paragraph.
When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
thereon. Exceptions:
Builders existing survey.
19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:
20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
03/31/2023 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
will pay the entire closing fee. Exceptions:
22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the
Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
requested corrective action.
23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
delivered to Buyer, subject to rights of present tenants, if any.
At the completion of the closing of the sale.
At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller
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will have the privilege to occupy the Property and hereby agrees to pay Buyer $ na as an occupancy
fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
liquidated damages $ per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
from the Property.
If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and
mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any
portion of the Property will be Seller’s responsibility and expense.
On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
all utilities, and shall deliver all keys to Buyer. Exceptions:
24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 5pm (time) on
12/12/2022 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ $1000
shall be submitted to Transnation Title (insert name of broker, title
company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement
and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding
the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If
Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed
to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be
negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller.
In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as
determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation,
and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action
instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement
conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
separately signed by Seller.
26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
27. Other Provisions:
Paragraph 8- will provide a quit claim deed vs a warranty deed.
1320 Spring shall be set up at a model home til 3/15/2023. Buyer to walk through for final touch up requests with builder.
28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
by Buyer and Seller and attached to this Agreement.
29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic
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communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
to steal funds or use your identity.
31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.
Buyer 1 Address 190 2nd St, St Ignace, MI 49781 X William Fraser Buyer
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Buyer 1 Phone: (Res.) 906-430-0090 (Bus.) William Fraser
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Buyer 2 Address 190 2nd St, St Ignace, MI 49781 X Angela Fraser Buyer
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Buyer 2 Phone: (Res.) 906-430-2056 (Bus.) Angela Fraser
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32. Seller’s Response: The above offer is approved: As written. As written except:
Earnest Deposit to be $3000 made to Transnation Title.
Counteroffer, if any, expires 12/13/2022 , at 5pm (time). Seller has the right to withdraw this
counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
disclosed in the Seller’s Disclosure Statement dated (choose one): Yes No. Seller agrees to inform
Buyer in writing of any changes in the content of the disclosure statement prior to closing.
34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
is available from the respective agents via the West Michigan REALTOR® Boards.
35. Listing Office Address: 255 W Western Ave, Muskegon, MI 49440 Listing Broker License # 6505429509
Listing Agent Name: Mariana Murillo VanDam Listing Agent License # 6506015435
36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
below.
X (Seller’s Signature, Date, Time): LeighAnn Mikesell
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LeighAnn Mikesell Is Seller a U.S. Citizen or Resident Alien? Yes No*
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X (Seller’s Signature, Date, Time):
Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.
Seller’s Address: Seller’s Phone (Res.) (Bus)
* If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.
37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.
X (Buyer’s Signature, Date, Time):
X (Buyer’s Signature, Date, Time):
38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.
X (Seller’s Signature, Date, Time): LeighAnn Mikesell
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Sale of 750 Leonard
Avenue
Submitted By: LeighAnn Mikesell Department: City Manager
Brief Summary: Staff is requesting approval of a purchase agreement for 750 Leonard Avenue.
Detailed Summary & Background:
750 Leonard Avenue was constructed through the agreement with Rudy Briggs to construct infill
housing with ARPA funding. The offer is for full asking price with no seller concessions.
Goal/Focus Area/Action Item Addressed:
Create an environment that effectively attracts new residents and retains existing residents by
filling existing employment gaps, attracting new and diverse businesses to the city, and expanding
access to a variety of high-quality housing options in Muskegon. Diverse housing types
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the purchase agreement for 750 Leonard Avenue and
authorize the City Manager Jonathan Seyferth or Deputy City Manager LeighAnn Mikesell to sign.
Approvals: Guest(s) Invited / Presenting
Immediate Division Head Information Technology
Other Division Heads Communication Yes
Legal Review No
For City Clerk Use Only:
Commission Action:
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WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 12/08/2022 , (time) MLS # 22045853
SELLING OFFICE: Five Star Real Estate BROKER LIC.#: 6505276328 REALTOR® PHONE: 231-349-2696
LISTING OFFICE: Terri L Kitchen Realtor REALTOR® PHONE: 231-760-9015
1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference
to "time" refers to local time.
2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
Real Estate Agency Relationships. The selling licensee is acting as (choose one):
Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller)
Transaction Coordinator
Primary Selling Agent Name: Karrie Harris Email: KarrieHarrisRealtor02@gmail.com Lic.#: 6501313299
Alternate Selling Agent Name: Email: Lic.#:
3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
Buyer has received the Seller’s Disclosure Statement, dated . Seller certifies to Buyer that the Property
is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any
changes in the content of the disclosure statement.
Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
registered mail. Exceptions: N/A NEW CONSTRUCTION
Seller is exempt from the requirements of the Seller Disclosure Act.
4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
and will be an integral part of this Agreement.
5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon ,
County of Muskegon , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
750 Leonard Avenue, Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
Legal: LOT 7, EXCEPT THE WEST 30.44 FEET, LOT 8 ANDTHE WEST 5.33 FEET OF LOT 9 BLOCK 3, GUNNS SUBDIVISION OF PART OF BLOCK 2,
CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN
PP# 6124405003000800 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) NA division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ 220,000.00
two hundred twenty thousand U.S. Dollars
7. Seller Concessions, if any: 0
8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a FHA MSHDA type 30 (year) mortgage in the amount of 97 % of the Purchase Price
bearing interest at a rate not to exceed 7 % per annum (rate at time of loan application), on or before the date the sale is
to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
process the application, within 5 days after the Effective Date, not to impair Buyers’ credit after the date such loan if
offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a
condition of financing. Buyer agrees does not agree322to authorize Buyer’s Agent/Dual Agent to obtain information from
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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:
SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE
In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
within 48 hours. Seller is advised to seek professional advice regarding the credit report.
$ upon execution and delivery of a
form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
will be payable in monthly installments of $ or more including interest at % per annum,
interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and
paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:
EQUITY (choose one of the following): Formal Assumption or Informal Assumption
Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest
in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above
provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer
agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
(10) days after the Effective Date of this Agreement. Exceptions:
OTHER:
9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:
A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
Money Deposit.
IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
of a sale or exchange of Buyer’s property located at
on or before . Seller will have the right to continue to
market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:
10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
Stove, refrigerator, microwave, dishwasher, central air
but does not include:
Washer and DryerN
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11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
expended through normal use. Exceptions:
N/A
12. Assessments (choose one):
If the Property is subject to any assessments,
Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
of any installment arrangements), except for any fees that are required to connect to public utilities.
Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
and pay all other installments of such assessments.
13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all
taxes billed after those addressed below.
Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
property is transferred.
No proration. (Choose one):
Buyer Seller will pay taxes billed summer (year);
Buyer Seller will pay taxes billed winter (year);
Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
and prorated to the date of closing with Seller paying for January 1 through the day before closing.
Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears.
Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:
14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense,
an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
other local governmental authority, if applicable) protocol.
If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-
is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
Buyer will proceed to closing according to the terms and conditions of this Agreement.
Other:
City Services
15. Inspections & Investigations:
Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
Buyer’s responsibility and expense.
Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
All inspections and investigations will be completed within ____ days after the Effective Date. If the results of Buyer’s inspections and
investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate
this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those
unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
750 Leonard Avenue, Muskegon, MI 49442
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deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal
or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s
receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a
refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will
be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this
Agreement.
Buyer has waived all rights under this Inspections & Investigations paragraph.
Exceptions:
16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
ordinances, if applicable.
17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
of this Agreement. Exceptions:
18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
and the location of improvements thereon.
Buyer or Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
Deposit.
No survey. Buyer has waived all rights under this paragraph.
When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
thereon. Exceptions:
19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:
20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
02/28/2023 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
will pay the entire closing fee. Exceptions:
22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the
Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
requested corrective action.
23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
delivered to Buyer, subject to rights of present tenants, if any.
At the completion of the closing of the sale.
At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller
750 Leonard Avenue, Muskegon, MI 49442
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will have the privilege to occupy the Property and hereby agrees to pay Buyer $ as an occupancy
fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
liquidated damages $ per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
from the Property.
If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and
mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any
portion of the Property will be Seller’s responsibility and expense.
On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
all utilities, and shall deliver all keys to Buyer. Exceptions:
24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until (time) on
(date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ 500.00 24/hr accep
shall be submitted to Five Star Real Estate (insert name of broker, title
company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement
and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding
the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If
Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed
to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be
negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller.
In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as
determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation,
and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action
instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement
conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
separately signed by Seller.
26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
27. Other Provisions:
28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
by Buyer and Seller and attached to this Agreement.
29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic
750 Leonard Avenue, Muskegon, MI 49442
Subject Property Address/Description Date Time
©Copyright, West Michigan REALTOR® Associations
JL BS Buyer’s Initials LM Seller’s Initials
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communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
to steal funds or use your identity.
31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.
Buyer 1 Address X Justin Lafever Buyer
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Buyer 1 Phone: (Res.) (Bus.) Justin Lafever
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Buyer 2 Address X Brittany Shepard Buyer
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Buyer 2 Phone: (Res.) (Bus.) Brittany Shepard
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32. Seller’s Response: The above offer is approved: As written. As written except:
Counteroffer, if any, expires , at (time). Seller has the right to withdraw this
counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
disclosed in the Seller’s Disclosure Statement dated (choose one): Yes No. Seller agrees to inform
Buyer in writing of any changes in the content of the disclosure statement prior to closing.
34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
is available from the respective agents via the West Michigan REALTOR® Boards.
35. Listing Office Address: 2340 Glade Street Listing Broker License #
Listing Agent Name: Terri Kitchen Listing Agent License # 6504312334
36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
below.
X (Seller’s Signature, Date, Time): Leighann Mikesell
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Is Seller a U.S. Citizen or Resident Alien? Yes No*
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X (Seller’s Signature, Date, Time):
Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.
Seller’s Address: Seller’s Phone (Res.) (Bus)
* If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.
37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.
X (Buyer’s Signature, Date, Time):
X (Buyer’s Signature, Date, Time):
38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.
X (Seller’s Signature, Date, Time):
X (Seller’s Signature, Date, Time):
750 Leonard Avenue, Muskegon, MI 49442
Subject Property Address/Description Date Time
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Sale of 1499 Hoyt
Street
Submitted By: LeighAnn Mikesell Department: City Manager
Brief Summary: Staff is requesting approval of a new purchase agreement for 1499 Hoyt Street.
Detailed Summary & Background:
1499 Hoyt Street was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. With seller concessions, the offer equates to the list price.
An earlier agreement has been rescinded.
Goal/Focus Area/Action Item Addressed:
Create an environment that effectively attracts new residents and retains existing residents by
filling existing employment gaps, attracting new and diverse businesses to the city, and expanding
access to a variety of high-quality housing options in Muskegon. Diverse housing types
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the purchase agreement for 1499 Hoyt Street and authorize
the City Manager Jonathan Seyferth or Deputy City Manager LeighAnn Mikesell to sign.
Approvals: Guest(s) Invited / Presenting
Immediate Division Head Information Technology
Other Division Heads Communication Yes
Legal Review No
For City Clerk Use Only:
Commission Action:
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WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
#
DATE: 12/09/2022 , 4:00 PM (time) MLS # 22025427
SELLING OFFICE: Pinnacle Realty BROKER LIC.#: 6505392630 REALTOR® PHONE: 2313275332
LISTING OFFICE: West Urban Realty REALTOR® PHONE: 6163662459
1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference
to "time" refers to local time.
2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
Real Estate Agency Relationships. The selling licensee is acting as (choose one):
Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller)
Transaction Coordinator
Primary Selling Agent Name: Jay Kilgo Email: jaykilgorealestate@gmail.com Lic.#: 6504431414
Alternate Selling Agent Name: Email: Lic.#:
3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
Buyer has received the Seller’s Disclosure Statement, dated . Seller certifies to Buyer that the Property
is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any
changes in the content of the disclosure statement.
Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
registered mail. Exceptions: Home Warrenty
Seller is exempt from the requirements of the Seller Disclosure Act.
4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
and will be an integral part of this Agreement.
5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon ,
County of Muskegon , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
1499 Hoyt Street Street, Muskegon, MI 49442
with the following legal description and tax parcel ID numbers:
DIST:24 SUBD:CITY OF MUSKEGON REVISED PLAT (OF 1903) SEC/TWN/RNG/MER:SEC 05 TWN 9N RNG 17W C
PP# 61-24-205-280-0012-00 .
The following paragraph applies only if the Premises include unplatted land:
Seller agrees to grant Buyer at closing the right to make (insert number) ALL division(s) under Section 108(2), (3), and
(4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
before 01/13/2023 , of the proposed division to create the Premises.
6. Purchase Price: Buyer offers to buy the Property for the sum of $ $189,900
one hundred eighty-nine thousand nine hundred U.S. Dollars
7. Seller Concessions, if any: Seller to contribute $10,000 of purchase price towards buyers closing costs, discount points and prepaids
8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
are currently available to Buyer in cash or an equally liquid equivalent.
If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
obtain a FHA type 30 (year) mortgage in the amount of 96.5 % of the Purchase Price
bearing interest at a rate not to exceed 8 % per annum (rate at time of loan application), on or before the date the sale is
to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
process the application, within 3 days after the Effective Date, not to impair Buyers’ credit after the date such loan if
offered. Seller Buyer will agree to pay an amount not to exceed $ 0 representing repairs required as a
condition of financing. Buyer agrees does not agree329to authorize Buyer’s Agent/Dual Agent to obtain information from
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Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
Exceptions:
SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE
In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
within 48 hours. Seller is advised to seek professional advice regarding the credit report.
$ upon execution and delivery of a
form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
will be payable in monthly installments of $ or more including interest at % per annum,
interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and
paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:
EQUITY (choose one of the following): Formal Assumption or Informal Assumption
Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest
in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above
provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer
agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
(10) days after the Effective Date of this Agreement. Exceptions:
OTHER:
9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:
A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
Money Deposit.
IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
of a sale or exchange of Buyer’s property located at
on or before . Seller will have the right to continue to
market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:
10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
Dishwasher; Microwave; Oven; Refrigerator, Washer & Dyer
but does not include:
1499 Hoyt Street Street, Muskegon, MI 49442 12/12/2022
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11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
expended through normal use. Exceptions:
NONE
12. Assessments (choose one):
If the Property is subject to any assessments,
Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
of any installment arrangements), except for any fees that are required to connect to public utilities.
Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
and pay all other installments of such assessments.
13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all
taxes billed after those addressed below.
Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
property is transferred.
No proration. (Choose one):
Buyer Seller will pay taxes billed summer (year);
Buyer Seller will pay taxes billed winter (year);
Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
and prorated to the date of closing with Seller paying for January 1 through the day before closing.
Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears.
Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:
NONE
14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense,
an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
other local governmental authority, if applicable) protocol.
If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-
is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
Buyer will proceed to closing according to the terms and conditions of this Agreement.
Other:
N/A
15. Inspections & Investigations:
Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
Buyer’s responsibility and expense.
Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
All inspections and investigations will be completed within 7____ days after the Effective Date. If the results of Buyer’s inspections and
investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate
this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those
unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
1499 Hoyt Street Street, Muskegon, MI 49442 12/12/2022
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deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal
or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s
receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a
refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will
be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this
Agreement.
Buyer has waived all rights under this Inspections & Investigations paragraph.
Exceptions:NONE
16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
ordinances, if applicable.
17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
of this Agreement. Exceptions:
NONE
18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
and the location of improvements thereon.
Buyer or Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
Deposit.
No survey. Buyer has waived all rights under this paragraph.
When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
thereon. Exceptions:
NONE
19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
additional protection and benefit to the parties. Exceptions:
Seller/Builder to provide 1 year Home Warranty on the New construction house
20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
owns the Property through the day before closing.
21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
01/13/2023 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
will pay the entire closing fee. Exceptions:
22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the
Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
requested corrective action.
23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
delivered to Buyer, subject to rights of present tenants, if any.
At the completion of the closing of the sale.
At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller
1499 Hoyt Street Street, Muskegon, MI 49442 12/12/2022
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will have the privilege to occupy the Property and hereby agrees to pay Buyer $ 0 as an occupancy
fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
liquidated damages $ 50 per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
from the Property.
If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and
mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any
portion of the Property will be Seller’s responsibility and expense.
On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
all utilities, and shall deliver all keys to Buyer. Exceptions:
24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 6 PM (time) on
12/13/2022 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ $1,000
shall be submitted to Transnation Title Company (insert name of broker, title
company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement
and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding
the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If
Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed
to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be
negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller.
In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as
determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation,
and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action
instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement
conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
separately signed by Seller.
26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
27. Other Provisions:
Seller to Pay Buyers agent Commission Stated in the MLS 3%
28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
by Buyer and Seller and attached to this Agreement.
29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic
1499 Hoyt Street Street, Muskegon, MI 49442 12/12/2022
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©Copyright, West Michigan REALTOR® Associations
BD Buyer’s Initials Seller’s Initials
Revision Date 8/2022
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communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
to steal funds or use your identity.
31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.
Buyer 1 Address X BRYTNEY DUNCAN Buyer
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H6OX-LWOA-NKH4-8EGM
Buyer 1 Phone: (Res.) (231) 557-1409 (Bus.) BRYTNEY DUNCAN
Print name as you want it to appear on documents.
Buyer 2 Address X Buyer
Buyer 2 Phone: (Res.) (Bus.)
Print name as you want it to appear on documents.
32. Seller’s Response: The above offer is approved: As written. As written except:
Seller to provide a quit claim deed vs a warranty
deed
Builder warranty started the day the city of
Muskegon gave certificate of occupancy.
Counteroffer, if any, expires , at (time). Seller has the right to withdraw this
counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
disclosed in the Seller’s Disclosure Statement dated (choose one): Yes No. Seller agrees to inform
Buyer in writing of any changes in the content of the disclosure statement prior to closing.
34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
is available from the respective agents via the West Michigan REALTOR® Boards.
35. Listing Office Address: 255 W Western Ave, Muskegon, MI 49440 Listing Broker License #
Listing Agent Name: Mariana Murillo VanDam Listing Agent License # Mariana Murillo VanDam
36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
below.
LeighAnn Mikesell
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X (Seller’s Signature, Date, Time): 4QUW-HMS5-NXWZ-SJNF
Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as LeighAnn
you want it to appear on documents.
Mikesell
X (Seller’s Signature, Date, Time):
Is Seller a U.S. Citizen or Resident Alien? Yes No*
Print name as you want it to appear on documents.
Seller’s Address: Seller’s Phone (Res.) (Bus)
* If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.
37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.
X (Buyer’s Signature, Date, Time):
X (Buyer’s Signature, Date, Time):
38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.
X (Seller’s Signature, Date, Time):
LeighAnn Mikesell
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X (Seller’s Signature, Date, Time): QRYV-CWAO-GQ6E-LTCW
1499 Hoyt Street Street, Muskegon, MI 49442 12/12/2022
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 10, 2023 Title: Public Hearing
Brownfield Plan Amendment,
1st Amendment, Adelaide
Pointe QOZB, LLC
Submitted By: Contessa Hood Department: City Manager
Brief Summary: Approval for Brownfield Plan Amendment,1st Amendment for Adelaide Pointe
QOZB, LLC (Adelaide Pointe Project) and to consider the attached resolution.
Detailed Summary & Background:
Adelaide Pointe QOZB, LLC is seeking a Brownfield Plan Amendment (1st Amendment) for the
Adelaide Pointe Project; a 35-acre mixed use waterfront development project including winter boat
storage, marina space, In/Out forklift boat storage, commercial/retail, and up to 400 housing units.
The initial Brownfield Plan Amendment was approved by the BRA on Oct 12, 2021 and City
Commission on Oct 26, 2021.
In Dec. 2020, the developer’s environmental consultant (Fishbeck) completed a Phase II
Environmental Site Assessment (ESA) and a Baseline Environmental Assessment. This plan
includes $12,404,400 in total EGLE and non-environmental local only eligible costs as well as
$24,379,064 in total MSF eligible costs. The developer is seeking to add state school tax capture
for reimbursement of costs related to Michigan Strategic Fund (MSF) eligible activities during the
first three immediate phases of redevelopment.
The City proposed to use a bond proceed of $8,101,388 to pay eligible site preparation and public
infrastructure costs that include public roadways, a reconfiguration of West Western Ave, as well
as a water main, sanitary sewer and storm sewer utilities. The local-only EGLE eligible costs are
$3,250,000 which include due care activities - $500,000 vapor intrusion mitigation, $1,500,000 soil
capping, $250,000 dewatering and $1,000,000 for the dredging and removal of soil contaminants.
Local-only MSF eligible costs are $5,810,000 which include $500,000 demolition, $250,000
asbestos abatement, $3,160,000 site preparation.
Capture of tax increment revenues for City reimbursement is anticipated to commence in 2023 and
end in 2031. Developer reimbursement will follow with an estimated start date of 2023. The
anticipated end date for Developer reimbursement is 2046. It is projected that the Plan
Amendment will extend 29 years, which assumes five years of additional capture of tax increment
revenues for deposit into a Local Brownfield Revolving Fund, if available.
The contingency percentage, interest request, and the annual administrative fee will remain the
same as previously stated on Oct. 26, 2021 during the scheduled City Commission meeting
approving the initial Brownfield Plan Amendment. The interest is included for all accrued and
unreimbursed eligible activities on a yearly basis. The BRA approved the revised BPA on Dec. 13,
2022 and recommends the approval of the BPA by the Muskegon City Commission on Jan. 10,
2022. The Muskegon City Commission and BRA approved the Brownfield Development &
Reimbursement Agreement, on Dec. 13, 2022. A signed copy from the Muskegon City
Commission was not able to be secured by the submission date for the 1/10 City Commission
meeting. Staff will be sure to send the signed DRA to the city clerk once the document is available.
335
Goal/Focus Area/Action Item Addressed:
Focus Area: improved access to the waterfront, blight cleanup, progress toward completion of
ongoing economic development projects
Action Item 2022-2.6: Complete Adelaide Pointe public improvements
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Motion to close the public hearing and to approve the resolution for the
Brownfield Plan Amendment, 1st Amendment for the Adelaide Pointe Project authorizing the Mayor
and City Clerk to sign.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
336
City of Muskegon
Brownfield Redevelopment Authority
Amendment to Brownfield Plan Amendment for the
Adelaide Pointe Project at
1204 West Western Avenue
Muskegon, Michigan
Initial Brownfield Plan Amendment Approved by the City of Muskegon
October 12, 2021
Brownfield Redevelopment Authority
Initial Brownfield Plan Amendment Approved by the City of Muskegon Board October 26, 2021
of Commissioners
Amendment to Brownfield Plan Amendment Approved by the City of
Muskegon Brownfield Redevelopment Authority
Amendment to Brownfield Plan Amendment Approved by the City of
Muskegon Board of Commissioners
Prepared with the assistance of:
Fishbeck
1515 Arboretum Drive SE
Grand Rapids, Michigan 49546
616-464-3876
337
Table of Contents Fishbeck | Page i
1.0 Introduction ...................................................................................................................................................1
1.1 Proposed Redevelopment and Future Use for the Eligible Property ................................................1
1.2 Eligible Property Information ............................................................................................................2
2.0 Information Required by Section 13(2) of the Statute ...................................................................................2
2.1 Description of Costs to Be Paid for With Tax Increment Revenues ..................................................2
2.2 Summary of Eligible Activities ...........................................................................................................4
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues ..................................................5
2.4 Maximum Amount of Note or Bonded Indebtedness .......................................................................5
2.5 Duration of Brownfield Plan..............................................................................................................5
2.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdiction ..........................5
2.7 Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property..5
2.8 Estimates of Residents and Displacement of Individuals/Families....................................................5
2.9 Plan for Relocation of Displaced Persons..........................................................................................6
2.10 Provisions for Relocation Costs .........................................................................................................6
2.11 Strategy for Compliance with Michigan’s Relocation Assistance Law...............................................6
2.12 Other Material that the Authority or Governing Body Considers Pertinent .....................................6
List of Figures
Figure 1 – Location Map
Figure 2 – Site Layout Map
List of Tables
Table 1 – Tax Increment Revenue Capture
Table 2 – Tax Increment Revenue Reimbursement Allocation
List of Attachments
Attachment A Resolution(s)
Attachment B Conceptual Renderings
Attachment C Environmental Data Tables and Exceedance Map
Attachment D Reimbursement Agreement
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1.0 Introduction
The City of Muskegon Brownfield Redevelopment Authority (the “Authority” or MBRA) was established by the City
of Muskegon pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as
amended (“Act 381”). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by
providing economic development incentives through tax increment financing for certain eligible properties.
On October 26, 2021, the City of Muskegon (the “City”) approved a Brownfield Plan Amendment (BPA) to
incorporate 1148 and 1204 West Western Avenue (“Eligible Property”, “Site”, or “Property”) into the City’s
existing Brownfield Plan. The BPA detailed redevelopment plans for a five-phase redevelopment at the Eligible
Property, including eligible activity costs and related reimbursement through local-only tax increment financing.
This amendment to the BPA has been prepared to add state school tax capture for reimbursement of costs
related to Michigan Strategic Fund (MSF) eligible activities during the first three immediate phases of
redevelopment. Future amendments to this amended BPA may be pursued for phases four and five of the
development. See Attachment A for copies of amended BPA resolutions.
1.1 Proposed Redevelopment and Future Use for the Eligible Property
The Developer, Adelaide Pointe QOZB, LLC, is proposing to redevelop a former industrial site located at 1204
West Western Avenue (1148 & 1204 West Western Avenue are now combined), Muskegon, Michigan. Figures 1
and 2 depict the Eligible Property location and layout.
Redevelopment consists of five phases that are anticipated to be completed by 2030. Phases one through three
are the focus of this amended BPA. Development phasing is described below:
Development Phase Anticipated/Actual Desired/Actual
Start Date Completion Date
Phase I – Revitalize existing buildings for boat Spring/Summer Spring 2022
storage 2021
Phase II – Construction of marina, mixed-use Spring 2023 Fall/Winter 2024
building, boater services building*
Phase III – Construction of 55-unit residential condo Spring 2023 Fall/Winter 2024
building*
Phase IV – Construction of hotel and 50 boat Spring 2024 Fall 2027
storage units and warehouse
Phase V – Construction of residential condos Spring 2025 Fall 2030
Phases one through three include revitalizing the existing site structures for boat storage, business offices, and
lease space (approx. 218,000 sf); creation of a new 280 slip marina and construction of a new three-story, mixed-
use building with ground level retail and office space (approximately 14,700 gross sf), a second-floor restaurant
(approximately 3,700 sf), and third floor deck area (approx. 3,700 sf) (the “Project”). The Project will create a
walkable community that incorporates public access to waterfront activities (e.g., swimming, fishing, boating),
inviting greenspace areas, and transient docking. Sustainable development techniques are proposed throughout
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the Project, including mass timber construction, solar boardwalks and roof systems, electric vehicle charging
stations, low-impact development stormwater management, and integrated parking. Total private investment in
Phases one through three, not including property acquisition, is approximately $125,000,000. The mixed-use
waterfront development will create approximately 100 new jobs (retail, office, restaurant, marina) and provide
contractor work for hundreds of temporary construction workers.
In addition to environmental activities, this amendment to the BPA includes non-environmental eligible activities
necessary to complete the Project. Non-environmental activities will include demolition, lead/asbestos
abatement, site preparation and public infrastructure improvements. Public infrastructure improvements will
include upgrades to the public utilities (water main, sanitary sewer, and storm sewer), public roadways, marina
and solar docks. Site preparation activities will include specialized foundations, clearing and grubbing, dredging,
compaction and sub-base preparation, cut and fill, excavation for unstable material, geotechnical engineering,
grading/land balancing, relocation of utilities, temporary erosion controls, temporary site control, surveying and
staking, architectural and engineering costs and mass grading.
1.2 Eligible Property Information
The 35-acre Property is located at the west end of West Western Avenue on the south shore of Muskegon Lake.
Since the late 1800s, the Property has been utilized for industrial purposes, primarily a lumberyard followed by
foundry operations. Based on a recent Phase II Environmental Site Assessment (ESA), completed in December
2020, these past industrial uses have resulted in widespread contamination across the Property. Known
contaminants in the soil with concentrations exceeding Michigan Department of Environment, Great Lakes, and
Energy (EGLE) Part 201 Generic Residential Cleanup Criteria (GRCC) include tetrachloroethylene (PCE), arsenic,
cadmium, chromium (total), copper, mercury, selenium, silver and zinc. Groundwater contaminants with
concentrations identified above Part 201 GRCC consist of benzene, 2-methylnaphthalene, naphthalene, cadmium,
chromium (total), copper, lead, mercury, and zinc.
The Developer is not a liable party and completed a Baseline Environmental Assessment (BEA) in accordance with
Part 201 of the Natural Resources and Environmental Protect Act, 1995 PA 451, as amended (NREPA).
Given the known contamination, the Property is a “facility” pursuant to Part 201 of NREPA. As such, it is
considered an “eligible property” as defined by the Michigan Redevelopment Financing Act, Act 381 of 1996.
The location and layout of the Property are depicted in Figures 1 and 2. Environmental data tables and an
exceedance map are provided in Attachment C.
2.0 Information Required by Section 13(2) of the Statute
2.1 Description of Costs to Be Paid for With Tax Increment Revenues
Tax increment revenues will be used to reimburse the Developer and City, as applicable, for the following eligible
activities.
• Pre-approved BEA, documentation of due care, asbestos/lead paint survey, and additional due care
assessment
• Due care activities
• Asbestos, lead paint, and mold abatement
• Select building and site demolition
• Site preparation
• Infrastructure improvements (public)
• 15% contingency
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• Brownfield Plan Amendment
• Brownfield Plan Amendment Implementation
• Interest
The table below provides an eligible activity cost summary for the Project.
EGLE Eligible Activities Estimated Cost
Department Specific Activities
Pre-Approved Sub-Total $350,000
BEA activities $52,000
Documentation of due care $33,000
Hazardous materials survey (e.g., asbestos, lead paint, etc.) $20,000
Due care assessment $245,000
EGLE Eligible Activities Total Costs $350,000
Interest (5%) $15,354
EGLE Eligible Costs Sub-Total $365,354
Summary of Eligible Activity Costs - Developer MSF
Estimated Redevelopment
Developer
MSF Eligible Activities Total Cost Completion Phase Related
Cost
Schedule to Activity
Public Infrastructure Improvements Sub-Total $8,100,000 $8,100,000
Public Parks (Linear Park, East Peninsula Park, $2,000,000 $2,000,000 2023-2024 Phase II & III
Commuter Bike Path)
Public Shopper Dock and Public Transient Dock $1,300,000 $1,300,000 2023-2024 Phase II
Marina Basin- (breakwater system/public $4,300,000 $4,300,000 2023-2024 Phase II
access path)
Solar Powered Docks $500,000 $500,000 2023-2024 Phase II
Site Preparation Sub-Total $6,750,000 $6,750,000
Specialized Foundations $905,000 $905,000 2023-2024 Phase II-V
Clearing and Grubbing $300,000 $300,000 2023-2024 Phase II & III
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Dredging $800,000 $800,000 2023-2024 Phase II & III
Compaction and Sub-Base Preparation $350,000 $350,000 2023-2024 Phase II & III
Cut and Fill $300,000 $300,000 2023-2024 Phase II
Excavation for Unstable Material $70,000 $70,000 2023-2024 Phase II & III
Fill $850,000 $850,000 2023-2024 Phase II & III
Geotechnical Engineering $180,000 $180,000 2023-2024 Phase I, II & III
Grading/Land Balancing $1,550,000 $1,550,000 2023-2024 Phase II & III
Relocation of Active Utilities $350,000 $350,000 2023-2024 Phase II & III
Temporary Erosion Controls $110,000 $110,000 2023-2024 Phase II & III
Temporary Facility $165,000 $165,000 2023-2024 Phase II & III
Temporary Site Control $195,000 $195,000 2023-2024 Phase II & III
Surveying and Staking $125,000 $125,000 2023-2024 Phase II & III
Architectural/Engineering Costs Related to $500,000 $500,000 2023-2024 Phase II & III
Eligible Activities
MSF Eligible Activities Sub-Total $14,850,000 $14,850,000
Contingency (15 %) $2,227,500 $2,227,500 Phase II-V
Interest (5 %)* $7,281,564 $7281,564 Phase I-V
Brownfield Plan and Work Plan Preparation $10,000 $10,000 Phase I
Brownfield Plan and Work Plan $10,000 $10,000 Phase I
Implementation
MSF Eligible Activities Total Costs $24,379,064 $24,379,064
*Interest collected at a 5% rate and capped at less than $8,000,000
ELIGIBLE ACTIVITIES COST SUMMARY- City of Muskegon Activities
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MSF Eligible Non-Environmental Activities Total Cost City of Estimated Redevelopment
Muskegon Cost Completion Phase Related
Schedule Activity
Public Infrastructure (sub-total)
$6,743,620 $6,743,620
Public Roadways $4,000,000 $4,000,000 2023-2024 Phase II
West Western Avenue Reconfiguration-Roadway $1,023,620 $1,023,620 2023-2024 Phase II
Water Main $850,000 $850,000 2023-2024 Phase II
Sanitary Sewer $600,000 $600,000 2023-2024 Phase II
Storm Sewer $270,000 $270,000 2023-2024 Phase II
Local Only Non-Environmental Activities Total
Costs $6,743,620 $6,743,620
Interest (5%)
$1,357,768 $1,357,768
Total City of Muskegon Bond Eligible Costs
$8,101,388 $8,101,388
LOCAL ONLY ELIGIBLE ACTIVITIES COST SUMMARY (Developer)
Local Only Eligible Activities Estimated Cost
Department Specific Activities
Due Care Sub-Total $3,250,000
Vapor intrusion mitigation $500,000
Soil capping $1,500,000
Dewatering $250,000
Contaminated Soil/Dredge Materials Removal and Disposal $1,000,000
Local Only Department Specific Activities Total Costs $3,250,000
Non-Environmental Activities
Asbestos, Lead based Paint and Mold Abatement $250,000
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Demolition $500,000
Site Preparation (Sub-total) $3,160,000
Specialized Foundations $1,250,000
Clearing and Grubbing $150,000
Compaction and Sub-Base Preparation $10,000
Geotechnical Engineering $50,000
Relocation of Active Utilities $100,000
Surveying & Staking $100,000
Architectural/Engineering Costs Related to Eligible Activities $1,500,000
Public Infrastructure (Sub-total) $1,900,000
Solar Powered Docks (public) $500,000
Community Building/Clubhouse and Pool (Public) $1,400,000
Non-Environmental Local Only Eligible Costs $5,810,000
Contingency (15%) $871,500
Brownfield Plan/Act 381 Workplan Preparation $10,000
Interest (5%)* $2,462,900
Total EGLE and Non-Environmental Local Only Eligible Costs $12,404,400
*5% Interest capture begins after MSF Non-Environmental Costs are reimbursed
2.2 Summary of Eligible Activities
Eligible activities as defined by Act 381 and included in this amended BPA consist of the following:
Pre-Approved Activities: These activities are permitted to occur prior to amended BPA approval. Preparation of a
Phase I ESA, BEA and Documentation of Due Care Compliance were necessary to protect the new Property
owner/Developer from liability for environmental contamination. A Hazardous Materials Investigation was
conducted to evaluate potential asbestos, lead paint, and other hazardous materials, as required by regulatory
agencies prior to select building demolition activities. Due care assessment will be conducted to verify compliance
with applicable due care obligations. Pre-approved activities can be reimbursed from state school and local tax
increment revenues.
Due Care Activities: Due care activities will include implementation of vapor intrusion mitigation systems, as
applicable, to prevent unacceptable exposures to potential indoor air inhalation concerns. Soil capping will be
completed to protect against direct contact concerns related to known contamination. Contaminated
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soils/dredge materials which cannot be utilized on the Property will be hauled to an appropriate Type 2 landfill for
disposal. During construction activities, dewatering may be necessary. Contaminated groundwater will be
properly managed to comply with due care. Due care costs will include environmental oversight and
management.
Asbestos, Lead Paint, and Mold Abatement: Prior to select building demolition activities, asbestos, lead paint, and
mold were abated, as applicable, in accordance with applicable regulatory guidelines.
Demolition: Select building and Site demolition will be necessary to facilitate safe redevelopment and reuse of the
Property.
Site Preparation: Site preparation is expected to include specialized foundations due to unsuitable urban fill
material across the Site, clearing and grubbing in preparation for redevelopment, dredging, compaction and sub-
base preparation, cut and fill, excavation for unstable material, fill, geotechnical engineering, grading, land
balancing, relocation of active utilities, temporary erosion control, temporary facility, temporary site control,
surveying, staking, and appropriate associated professional engineering/architectural fees related to the eligible
activities. All the site preparation activities are necessary to support the redevelopment.
Public Infrastructure Improvements: Public Infrastructure improvements will be made by both the Developer and
City of Muskegon in the public right-of-way and publicly accessible land as outlined in the signed Cooperative Use
Agreement between the City of Muskegon and AP dated September 13, 2022. Public infrastructure activities,
including public parks (Linear Park, East Peninsula Park and the commuter bike path), public roadways (Adelaide
Avenue), West Western Avenue reconstruction, public/transient shopper and dockage and dock slips, new and
upgraded water main, sanitary sewer and storm sewer utilities, solar power infrastructure for the public shopper
and transient dockage and marina upgrades including the breakwater with public access path.
Amended BPA Preparation: This amended BPA was required for authorization of reimbursement to the
Developer and City, as applicable, from tax increment revenues under Public Act 381 of 1996, as amended.
Amended BPA Implementation: Tracking, submittal, review of invoices for reimbursement, plan compliance, and
data reporting will be conducted.
Contingency: A 15% contingency is included for those activities not already completed.
Interest: A 5% interest on unreimbursed eligible activities is included.
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues
The base year of this amended BPA is 2021, as established in the approved BPA. The 2021 taxable value of the
eligible property was $903,810. After completion of the development (Phases one, two and three), the taxable
value is estimated at $42,875,000. This amended BPA assumes a 1.0% annual increase in the taxable value of the
Eligible Property. Initial capture is anticipated to begin in 2023.
The estimated captured taxable value for the redevelopment by year and in aggregate for each taxing jurisdiction
is depicted in tabular form (Table 1: Tax Increment Revenue Capture). Actual taxable values and tax increment
revenues may vary year to year based on economic and market conditions, tax incentives, building additions, and
property improvements, among other factors.
A summary of the estimated reimbursement schedule by year and in aggregate is presented as Table 2: Tax
Increment Revenue Reimbursement Allocation.
Method of Financing and Description of Advances Made by the Municipality
The cost of the eligible activities included in this amended BPA will be paid for by the Developer and the City. The
Developer and City will seek reimbursement for eligible activity costs through capture of available local and state
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(as applicable) school tax increment revenues as permitted by Act 381. Additionally, as necessary personal
property taxes may be utilized as well for reimbursement. Refer to Attachment D for a copy of the
Reimbursement Agreement.
2.4 Maximum Amount of Note or Bonded Indebtedness
The City of Muskegon may finance eligible public infrastructure improvements and other eligible activities, as
applicable, via municipal bonds with tax increment financing as the pay back mechanism subject to the terms
outlined in the Reimbursement/Development Agreement (Attachment D). The estimated total bond amount will
not exceed $10,500,000 with interest added at 5 %.
2.5 Duration of Brownfield Plan
Capture of tax increment revenues for the City reimbursement is anticipated to commence in 2023 and end in
2031. Developer reimbursement will follow with an estimated start date of 2023. The anticipated end date for
Developer reimbursement is 2046. It is projected that the amended BPA will extend 29 years, which assumes five
years of additional capture of tax increment revenues for deposit into a Local Brownfield Revolving Fund, if
available.
2.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing
Jurisdiction
The estimated amount of tax increment revenues to be captured for this redevelopment from each taxing
jurisdiction by year and in aggregate is presented in Tables 1 and 2.
2.7 Legal Description, Property Map, Statement of Qualifying Characteristics and
Personal Property
• The legal description is as follows:
1204 W. Western Avenue
CITY OF MUSKEGON PART OF SECTION 25 T10N R17W PRT OF BLKS 578-580 DESC AS FOLS COM AT SE
COR LOT 4 BLK 577 TH S 88D 15M W ALG SLY LN SD BLK 577 EXTND (ALSO BEING NLY LN WESTERN AVE)
847.15 FT FOR POB TH N 01D 56M 50S W 256.10 FT TH N 31D 37M 35S E 47 FT TH N 55D 15M 15S E
89.20 FT TH N 35D 54M 50S W 127.65 FT TH N 02D 52M 10S W 553 FT TH S 55D 13 M W 243 FT TH N
34D 47M W 330 FT M/L TO SHORE OF MUSKEGON LAKE REFERRED TO AS PT B TH RECOM AT POB TH S
88D 15M W ALG NLY LN WESTERN AVE 18.65 FT TH SWLY ALG SD NLY LN WESTERN AVE ALG ARC OF A
430.61 FT RAD CURVE TO LT 158.33 FT (LC SD CURVE BEARS S 77D 43M 00S W 157.44 FT & CENTRAL ANG
SD CURVE IS 21D 04M 00) TO WLY LN NELY 200 FT OF SD BLK 580 TH N 35D 2M 10S W ALG SD WLY LN
SD NELY 200 FT DIST 850 FT M/L TO SHORE OF MUSKEGON LAKE REFERRED TO AS PT C TH NWLY SELY &
NELY ALG SHORE OF MUSKEGON LAKE 1300 FT M/L FROM SD PT C TO SD PT B EXC THAT PRT OF ABOVE
DESC PARCEL THAT LIES WITHIN THE CHESAPEAKE & OHIO RR ROW EXC THAT PART TAKEN BY THE CITY
OF MUSKEGON FOR THE LAKESHORE TRAIL BIKE PATH DESC AS THAT PART OF BLKS 578 & 580 DESC
AS COM @ SE COR LOT 4 BLK 577 TH S 88D 40M 42S W ALG N ROW LN WESTERN AVE 847.60 FT TH N
01D 31M 57S W 256.10 FT TH N 32D 02M 28S E 47 FT TH N 55D 40M 08S E 89.20 FT TH N 35D 29M 57S
W 127.65 FT TH N 02D 27M 17S W 553 FT TH S 55D 37M 53S W 243 FT TH N 34D 22M 07S W 235.92 FT
TO POB TH S 50D 44M 04S W 329.75 FT TH S 20D 19M 09S W 96.30 FT TH S 23D 53M 54S E 405.55
FT TH N 34D 34M 00S W ALG NE LN LAKESHORE YACHT HARBOUR 86.43 FT TH N 23D 53M 54S W 327.11
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November 22, 2022 Fishbeck | Page 9
FT TH N 20D 19M 09S E 107.14 FT TH N 50D 44M 04S E 335.70 FT TH S 33D 32M 57S E 16.08 FT TO
POB TAKEN FOR LAKESHORE TRAIL BIKE PATH ACROSS SD PROPERTY AND COM AT SE COR LOT 4 BLK
577 FOR POB TH N 1 DEG 41 MIN W 158.40 FT TH N 76 DEG 43 MIN W 103.55 FT TH NWLY ON THE ARC
OF A 492.47 FT RAD CURVE TO THE RT 110.31 FT (LONG CORD BEARS N 70D 18M W 110.07 FT CENTRAL
ANGLE IS 12D 50M 00S) TH N 63 DEG 53 MIN W 67 FT TH N 2 DEG 4 MIN W 33.8 FT TO RR R/W TH
CON'T N 2 DEG 4 MIN W 367.7 FT TH N 37 DEG W 730 FT TH N 48 DEG W 600 FT M/L TO MUSKEGON
LAKE TO A PT A RECOM AT POB TH S 88 DEG 15 MIN W 847.15 FT TH N 1 DEG 56 MIN 50 SEC W 256.1
FT TH N 31 DEG 37 MIN 35 SEC E 47 FT TH N 55 DEG 15 MIN 15 SEC E 89.2 FT TH N 35 DEG 54 MIN 50
SEC W 127.65 FT TH N 2 DEG 52 MIN 10 SEC W 553 FT TH S 55 DEG 13 MIN W 243 FT TH N 34 DEG 47
MIN W 330 FT M/L TO THE SHORE OF MUSKEGON LAKE TO A PT REFERRED TO AS PT B TH WLY ALG
SHORE LN 1500 FT M/L TO SD PT A EXC THAT PART LYING WITHIN C&O RR R/W RECORDED IN L 702 P
134 ALSO EXC COM AT SW COR LOT 4 BLK 574 FOR POB TH WLY ALG WESTERN AVE 20.5 FT TO SE COR
LOT 5 TH NLY TO SLY LN C&O RR R/W TH SELY ALG SLY LN OF SD R/W TO NW COR LOT 3 BLK 577 TH S
ALG W LN LOT 3 TO NE COR LOT 4 TH WLY ALG NLY LN LOT 4 40 FT TO NW COR SD LOT TH SLY ALG W LN
TO POB EXC THAT PART OF BLK 578 DESCRIBED AS COM AT THE SE COR OF LOT 4 BLK 577 TH S 88D
40M 42S W ALG N R-O-W LINE OF WESTERN AVE 847.60 FT TH N 01D 31M 57S W 256.10 FT TH N 32 D
02M 28S E 47 FT TH N 55D 40M 08S E 89.20 FT TH N 35D 29M 57S W 127.65 FT TH N 02D 27M 17S W
553 FT TH S 55D 37M 53S W 243 FT TH N 34D 22M 07S W 235.92 FT TO POB TH N 33D 32M 57S W
16.08FT TH N 62D 10M 01S E 211.19 FT TH S 87D 42M 46S E 126.81 FT TH N 71D 39M 34S E 169.45
FT TH S 53D 57M 29S E 104.89 FT TH S 36D 27M 44S E 604.13 FT TH S 01D 31M 44S E 16 FT TH S 38D
27M 16S W 8.34 FT TH N 36D 27M 44S W 610.01FT TH N 53D 57M 29S W 94.21 FT TH S 71D 39M 34S
W 164.14 FT TH N 87D 42M 46S W 125.42 FT TH S 62D 10M 01S W 205.29 FT TO POB
• The Property layout is depicted on Figure 2.
• The Property is considered an “eligible property” as defined by Act 381 because the Property is a facility
pursuant to Part 201. Facility verification is included in Attachment C.
• New personal property added to the Property is included as part of the Eligible Property to the extent it is
taxable.
2.8 Estimates of Residents and Displacement of Individuals/Families
No residents or families will be displaced because of the Project.
2.9 Plan for Relocation of Displaced Persons
Not applicable.
2.10 Provisions for Relocation Costs
Not applicable.
2.11 Strategy for Compliance with Michigan’s Relocation Assistance Law
Not applicable.
2.12 Other Material that the Authority or Governing Body Considers Pertinent
The Project will significantly improve the Muskegon Lake shoreline through revitalization of Property once used
for industrial purposes. Existing structures will be revitalized, and environmental exposure risks mitigated. A new
marina with transient boat slips will provide local citizens and tourists with opportunities to access the vibrant
Muskegon downtown and other nearby recreational activities. Construction of new boat storage and residential
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November 22, 2022 Fishbeck | Page 10
condominiums will expand Muskegon Lake access and increase long-term tax revenues for the City of Muskegon
and the State of Michigan. The Development will also create numerous job opportunities for the community.
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Figure 1
Location Map
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349
VICINITY MAP
MICHIGAN
CITY OF
MUSKEGON
_
^
MUSKEGON COUNTY
Hard copy is
intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
1148 & 1204 West Western Ave., Muskegon, Muskegon County MI 49441
Leesta Management, LLC
Baseline Environmental Assessment
SITE
PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\FIG01_LocationMap.mxd Date: 5/25/2021 1:59:36 PM User: bahannah
PROJECT NO.
201515
LOCATION MAP FIGURE NO.
FEET
350
NORTH 0 1,000 2,000
© OpenStreetMap (and) contributors, CC-BY-SA 1
©Copyright 2021 All Rights Reserved
Figure 2
Site Layout Map
351
LEGEND
Approximate Property Boundary
Hard copy is
intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
1148 & 1204 West Western Ave., Muskegon, Muskegon County MI 49441
Leesta Management, LLC
Baseline Environmental Assessment
PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\FIG03_SiteMap.mxd Date: 5/25/2021 2:03:18 PM User: bahannah
PROJECT NO.
SITE MAP
201515
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus
DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, FIGURE NO.
Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE,
FEET
Garmin, (c) OpenStreetMapNORTH 0 and the150
contributors, GIS user300
2
community
©Copyright 2021 All Rights Reserved
352
Table 1
Tax Increment Revenue Capture
353
Table 1 - Estimate of Total Incremental Taxes Available for Capture 1 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate: 1%
Plan Year 0 1 2 3 4 5 6 7 8 9 10
Calendar Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Base Taxable Value $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810
Estimated New TV $ - $ 1,750,000 $14,875,000 $42,875,000 $43,303,750 $43,736,788 $44,174,155 $44,615,897 $ 45,062,056 $ 45,512,676 $ 45,967,803
1
Incremental Difference (New TV - Base TV) $ - $ 846,190 $ 13,971,190 $ 41,971,190 $ 42,399,940 $ 42,832,978 $ 43,270,345 $ 43,712,087 $ 44,158,246 $ 44,608,866 $ 45,063,993
School Capture Millage Rate
State Education Tax (SET) 6.00000 $ - $ 5,077 $ 83,827 $ 251,827 $ 254,400 $ 256,998 $ 259,622 $ 262,273 $ 264,949 $ 267,653 $ 270,384
School Operating Tax 17.98380 $ - $ 15,218 $ 251,255 $ 754,801 $ 762,512 $ 770,300 $ 778,165 $ 786,109 $ 794,133 $ 802,237 $ 810,422
School Total 23.9838 $ - $ 20,295 $ 335,082 $ 1,006,629 $ 1,016,912 $ 1,027,298 $ 1,037,787 $ 1,048,382 $ 1,059,083 $ 1,069,890 $ 1,080,806
Local Capture Millage Rate
County Museum 0.32200 $ - $ 272 $ 4,499 $ 13,515 $ 13,653 $ 13,792 $ 13,933 $ 14,075 $ 14,219 $ 14,364 $ 14,511
County Veterans 0.07150 $ - $ 61 $ 999 $ 3,001 $ 3,032 $ 3,063 $ 3,094 $ 3,125 $ 3,157 $ 3,190 $ 3,222
Senior Citzens Services 0.49990 $ - $ 423 $ 6,984 $ 20,981 $ 21,196 $ 21,412 $ 21,631 $ 21,852 $ 22,075 $ 22,300 $ 22,527
Central Dispatch 0.29999 $ - $ 254 $ 4,191 $ 12,591 $ 12,720 $ 12,849 $ 12,981 $ 13,113 $ 13,247 $ 13,382 $ 13,519
Community College 2.20340 $ - $ 1,864 $ 30,784 $ 92,479 $ 93,424 $ 94,378 $ 95,342 $ 96,315 $ 97,298 $ 98,291 $ 99,294
M.A.I.S.D 4.75410 $ - $ 4,023 $ 66,420 $ 199,535 $ 201,574 $ 203,632 $ 205,712 $ 207,812 $ 209,933 $ 212,075 $ 214,239
City Operating 10.07540 $ - $ 8,526 $ 140,765 $ 422,877 $ 427,196 $ 431,559 $ 435,966 $ 440,417 $ 444,912 $ 449,452 $ 454,038
City Sanitation 2.99790 $ - $ 2,537 $ 41,884 $ 125,825 $ 127,111 $ 128,409 $ 129,720 $ 131,044 $ 132,382 $ 133,733 $ 135,097
Hackley Library 2.39970 $ - $ 2,031 $ 33,527 $ 100,718 $ 101,747 $ 102,786 $ 103,836 $ 104,896 $ 105,967 $ 107,048 $ 108,140
MPS Sinking 0.99810 $ - $ 845 $ 13,945 $ 41,891 $ 42,319 $ 42,752 $ 43,188 $ 43,629 $ 44,074 $ 44,524 $ 44,978
County Operating 5.69780 $ - $ 4,821 $ 79,605 $ 239,143 $ 241,586 $ 244,054 $ 246,546 $ 249,063 $ 251,605 $ 254,172 $ 256,766
Local Total 30.3198 $ - $ 25,656 $ 423,604 $ 1,272,558 $ 1,285,557 $ 1,298,687 $ 1,311,948 $ 1,325,341 $ 1,338,869 $ 1,352,531 $ 1,366,331
Non-Capturable Millages Millage Rate
Community College Debt 0.34000 $ - $ 288 $ 4,750 $ 14,270 $ 14,416 $ 14,563 $ 14,712 $ 14,862 $ 15,014 $ 15,167 $ 15,322
Hackley Debt 0.45320 $ - $ 383 $ 6,332 $ 19,021 $ 19,216 $ 19,412 $ 19,610 $ 19,810 $ 20,013 $ 20,217 $ 20,423
MPS Debt - 1995 3.86000 $ - $ 3,266 $ 53,929 $ 162,009 $ 163,664 $ 165,335 $ 167,024 $ 168,729 $ 170,451 $ 172,190 $ 173,947
MPS Debt - 2009 3.50000 $ - $ 2,962 $ 48,899 $ 146,899 $ 148,400 $ 149,915 $ 151,446 $ 152,992 $ 154,554 $ 156,131 $ 157,724
Total Non-Capturable Taxes 8.1532 $ - $ 6,899 $ 113,910 $ 342,200 $ 345,695 $ 349,226 $ 352,792 $ 356,393 $ 360,031 $ 363,705 $ 367,416
1
Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture $ - $ 45,951 $ 758,686 $ 2,279,186 $ 2,302,469 $ 2,325,984 $ 2,349,735 $ 2,373,723 $ 2,397,951 $ 2,422,422 $ 2,447,137
Notes-
Table 2 assumes incremental annual investment with
project completion in 2025.
For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overall investment
of $125,000,000
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TBL02 and TBL03_TIF_ Adelaide rev 1122022.xlsx
Table 1 - Estimate of Total Incremental Taxes Available for Capture 2 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate:
Plan Year 11 12 13 14 15 16 17 18 19 20 21 22
Calendar Year 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
Base Taxable Value $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810
Estimated New TV $ 46,427,481 $ 46,891,756 $ 47,360,674 $ 47,834,280 $ 48,312,623 $ 48,795,749 $ 49,283,707 $ 49,776,544 $ 50,274,309 $ 50,777,052 $ 51,284,823 $ 51,797,671
1
Incremental Difference (New TV - Base TV) $ 45,523,671 $ 45,987,946 $ 46,456,864 $ 46,930,470 $ 47,408,813 $ 47,891,939 $ 48,379,897 $ 48,872,734 $ 49,370,499 $ 49,873,242 $ 50,381,013 $ 50,893,861
School Capture Millage Rate
State Education Tax (SET) 6.00000 $ 273,142 $ 275,928 $ 278,741 $ 281,583 $ 284,453 $ 287,352 $ 290,279 $ 293,236 $ 296,223 $ 299,239 $ 302,286 $ 305,363
School Operating Tax 17.98380 $ 818,689 $ 827,038 $ 835,471 $ 843,988 $ 852,591 $ 861,279 $ 870,054 $ 878,917 $ 887,869 $ 896,910 $ 906,042 $ 915,265
School Total 23.9838 $ 1,091,831 $ 1,102,966 $ 1,114,212 $ 1,125,571 $ 1,137,043 $ 1,148,631 $ 1,160,334 $ 1,172,154 $ 1,184,092 $ 1,196,150 $ 1,208,328 $ 1,220,628
Local Capture Millage Rate
County Museum 0.32200 $ 14,659 $ 14,808 $ 14,959 $ 15,112 $ 15,266 $ 15,421 $ 15,578 $ 15,737 $ 15,897 $ 16,059 $ 16,223 $ 16,388
County Veterans 0.07150 $ 3,255 $ 3,288 $ 3,322 $ 3,356 $ 3,390 $ 3,424 $ 3,459 $ 3,494 $ 3,530 $ 3,566 $ 3,602 $ 3,639
Senior Citzens Services 0.49990 $ 22,757 $ 22,989 $ 23,224 $ 23,461 $ 23,700 $ 23,941 $ 24,185 $ 24,431 $ 24,680 $ 24,932 $ 25,185 $ 25,442
Central Dispatch 0.29999 $ 13,657 $ 13,796 $ 13,937 $ 14,079 $ 14,222 $ 14,367 $ 14,513 $ 14,661 $ 14,811 $ 14,961 $ 15,114 $ 15,268
Community College 2.20340 $ 100,307 $ 101,330 $ 102,363 $ 103,407 $ 104,461 $ 105,525 $ 106,600 $ 107,686 $ 108,783 $ 109,891 $ 111,010 $ 112,140
M.A.I.S.D 4.75410 $ 216,424 $ 218,631 $ 220,861 $ 223,112 $ 225,386 $ 227,683 $ 230,003 $ 232,346 $ 234,712 $ 237,102 $ 239,516 $ 241,955
City Operating 10.07540 $ 458,669 $ 463,347 $ 468,071 $ 472,843 $ 477,663 $ 482,530 $ 487,447 $ 492,412 $ 497,428 $ 502,493 $ 507,609 $ 512,776
City Sanitation 2.99790 $ 136,475 $ 137,867 $ 139,273 $ 140,693 $ 142,127 $ 143,575 $ 145,038 $ 146,516 $ 148,008 $ 149,515 $ 151,037 $ 152,575
Hackley Library 2.39970 $ 109,243 $ 110,357 $ 111,483 $ 112,619 $ 113,767 $ 114,926 $ 116,097 $ 117,280 $ 118,474 $ 119,681 $ 120,899 $ 122,130
MPS Sinking 0.99810 $ 45,437 $ 45,901 $ 46,369 $ 46,841 $ 47,319 $ 47,801 $ 48,288 $ 48,780 $ 49,277 $ 49,778 $ 50,285 $ 50,797
County Operating 5.69780 $ 259,385 $ 262,030 $ 264,702 $ 267,400 $ 270,126 $ 272,879 $ 275,659 $ 278,467 $ 281,303 $ 284,168 $ 287,061 $ 289,983
Local Total 30.3198 $ 1,380,268 $ 1,394,345 $ 1,408,562 $ 1,422,922 $ 1,437,425 $ 1,452,074 $ 1,466,868 $ 1,481,811 $ 1,496,903 $ 1,512,146 $ 1,527,542 $ 1,543,091
Non-Capturable Millages Millage Rate
Community College Debt 0.34000 $ 15,478 $ 15,636 $ 15,795 $ 15,956 $ 16,119 $ 16,283 $ 16,449 $ 16,617 $ 16,786 $ 16,957 $ 17,130 $ 17,304
Hackley Debt 0.45320 $ 20,631 $ 20,842 $ 21,054 $ 21,269 $ 21,486 $ 21,705 $ 21,926 $ 22,149 $ 22,375 $ 22,603 $ 22,833 $ 23,065
MPS Debt - 1995 3.86000 $ 175,721 $ 177,513 $ 179,323 $ 181,152 $ 182,998 $ 184,863 $ 186,746 $ 188,649 $ 190,570 $ 192,511 $ 194,471 $ 196,450
MPS Debt - 2009 3.50000 $ 159,333 $ 160,958 $ 162,599 $ 164,257 $ 165,931 $ 167,622 $ 169,330 $ 171,055 $ 172,797 $ 174,556 $ 176,334 $ 178,129
Total Non-Capturable Taxes 8.1532 $ 371,164 $ 374,949 $ 378,772 $ 382,634 $ 386,534 $ 390,473 $ 394,451 $ 398,469 $ 402,528 $ 406,627 $ 410,766 $ 414,948
1
Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture $ 2,472,099 $ 2,497,311 $ 2,522,774 $ 2,548,493 $ 2,574,469 $ 2,600,704 $ 2,627,202 $ 2,653,965 $ 2,680,995 $ 2,708,296 $ 2,735,870 $ 2,763,719
Notes-
Table 2 assumes incremental annual investment with
project completion in 2025.
For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overall investment
of $125,000,000
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TBL02 and TBL03_TIF_ Adelaide rev 1122022.xlsx
Table 1 - Estimate of Total Incremental Taxes Available for Capture 3 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate:
Plan Year 23 24 25 26 27 28 29 30 TOTAL
Calendar Year 2044 2045 2046 2047 2048 2049 2050 2051
Base Taxable Value $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ -
Estimated New TV $ 52,315,648 $ 52,838,804 $ 53,367,192 $ 53,900,864 $ 54,439,873 $ 54,984,272 $ 55,534,115 $ 56,089,456 $ -
1
Incremental Difference (New TV - Base TV) $ 51,411,838 $ 51,934,994 $ 52,463,382 $ 52,997,054 $ 53,536,063 $ 54,080,462 $ 54,630,305 $ 55,185,646 $ -
School Capture Millage Rate
State Education Tax (SET) 6.00000 $ 308,471 $ 311,610 $ 314,780 $ 317,982 $ 321,216 $ 324,483 $ 327,782 $ 331,114 $ 4,441,724
School Operating Tax 17.98380 $ 924,580 $ 933,989 $ 943,491 $ 953,088 $ 962,782 $ 972,572 $ 982,460 $ 992,448 $ 13,313,180
School Total 23.9838 $ 1,233,051 $ 1,245,599 $ 1,258,271 $ 1,271,071 $ 1,283,998 $ 1,297,055 $ 1,310,242 $ 1,323,561 $ 17,754,904
Local Capture Millage Rate
County Museum 0.32200 $ 16,555 $ 16,723 $ 16,893 $ 17,065 $ 17,239 $ 17,414 $ 17,591 $ 17,770 $ 238,373
County Veterans 0.07150 $ 3,676 $ 3,713 $ 3,751 $ 3,789 $ 3,828 $ 3,867 $ 3,906 $ 3,946 $ 52,931
Senior Citzens Services 0.49990 $ 25,701 $ 25,962 $ 26,226 $ 26,493 $ 26,763 $ 27,035 $ 27,310 $ 27,587 $ 370,070
Central Dispatch 0.29999 $ 15,423 $ 15,580 $ 15,738 $ 15,899 $ 16,060 $ 16,224 $ 16,389 $ 16,555 $ 222,079
Community College 2.20340 $ 113,281 $ 114,434 $ 115,598 $ 116,774 $ 117,961 $ 119,161 $ 120,372 $ 121,596 $ 1,631,149
M.A.I.S.D 4.75410 $ 244,417 $ 246,904 $ 249,416 $ 251,953 $ 254,516 $ 257,104 $ 259,718 $ 262,358 $ 3,519,400
City Operating 10.07540 $ 517,995 $ 523,266 $ 528,590 $ 533,967 $ 539,397 $ 544,882 $ 550,422 $ 556,017 $ 7,458,691
City Sanitation 2.99790 $ 154,128 $ 155,696 $ 157,280 $ 158,880 $ 160,496 $ 162,128 $ 163,776 $ 165,441 $ 2,219,307
Hackley Library 2.39970 $ 123,373 $ 124,628 $ 125,896 $ 127,177 $ 128,470 $ 129,777 $ 131,096 $ 132,429 $ 1,776,468
MPS Sinking 0.99810 $ 51,314 $ 51,836 $ 52,364 $ 52,896 $ 53,434 $ 53,978 $ 54,527 $ 55,081 $ 738,881
County Operating 5.69780 $ 292,934 $ 295,915 $ 298,926 $ 301,967 $ 305,038 $ 308,140 $ 311,273 $ 314,437 $ 4,218,009
Local Total 30.3198 $ 1,558,796 $ 1,574,658 $ 1,590,679 $ 1,606,860 $ 1,623,202 $ 1,639,708 $ 1,656,379 $ 1,673,217 $ 22,445,357
Non-Capturable Millages Millage Rate
Community College Debt 0.34000 $ 17,480 $ 17,658 $ 17,838 $ 18,019 $ 18,202 $ 18,387 $ 18,574 $ 18,763 $ 251,698
Hackley Debt 0.45320 $ 23,300 $ 23,537 $ 23,776 $ 24,018 $ 24,263 $ 24,509 $ 24,758 $ 25,010 $ 335,498
MPS Debt - 1995 3.86000 $ 198,450 $ 200,469 $ 202,509 $ 204,569 $ 206,649 $ 208,751 $ 210,873 $ 213,017 $ 2,857,509
MPS Debt - 2009 3.50000 $ 179,941 $ 181,772 $ 183,622 $ 185,490 $ 187,376 $ 189,282 $ 191,206 $ 193,150 $ 2,591,006
Total Non-Capturable Taxes 8.1532 $ 419,171 $ 423,436 $ 427,744 $ 432,096 $ 436,490 $ 440,929 $ 445,412 $ 449,940 $ 6,035,711
1
Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture $ 2,791,847 $ 2,820,257 $ 2,848,950 $ 2,877,930 $ 2,907,200 $ 2,936,763 $ 2,966,622 $ 2,996,779 $ 40,200,261
Notes-
Table 2 assumes incremental annual investment with
project completion in 2025.
For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overall investment
of $125,000,000
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TBL02 and TBL03_TIF_ Adelaide rev 1122022.xlsx
Table 2
Tax Increment Revenue Reimbursement Allocation
357
Table 2 - Estimate of Total Incremental Taxes Available for Reimbursement 1 of 1
1148 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Developer
Proportionality Maximum School &
Reimbursement Local Taxes Estimated Developer Capture $ 35,814,206
44.1% State $ 13,499,629 Estimated City of Muskegon Capture $ 8,101,388
55.9% Local 31,750,577 Estimated Years of Capture: 29 years BRA Administrative Fee $ 170,500
TOTAL $ 45,250,206 State Brownfield Redevelopment Fund $ 2,220,862
EGLE $ 365,354 Local Brownfield Revolving Fund $ -
MSF $32,480,452
Local Only $ 12,404,400
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 TOTAL
Total State Incremental Revenue $ - $ 20,295 $ 335,082 $ 1,006,629 $ 1,016,912 $ 1,027,298 $ 1,037,787 $ 1,048,382 $ 1,059,083 $ 1,069,890 $ 1,080,806 $ 1,091,831 $ 1,102,966 $ 1,114,212 $ 1,125,571 $ 1,137,043 $ 1,148,631 $ 1,160,334 $ 1,172,154 $ 1,184,092 $ 1,196,150 $ 1,208,328 $ 1,220,628 $ 1,233,051 $ 1,245,599 $ 1,258,271 $ 1,271,071 $ 1,283,998 $ 1,297,055 $ 1,310,242 $ 1,323,561 $ 17,754,904
State Brownfield Redevelopment Fund (50% of SET) $ - $ 2,539 $ 41,914 $ 125,914 $ 127,200 $ 128,499 $ 129,811 $ 131,136 $ 132,475 $ 133,827 $ 135,192 $ 136,571 $ 137,964 $ 139,371 $ 140,791 $ 142,226 $ 143,676 $ 145,140 $ 146,618 $ 148,111 $ 149,620 $ 151,143 $ 152,682 $ 154,236 $ 155,805 $ 157,390 $ 158,991 $ 160,608 $ 162,241 $ 163,891 $ 165,557 $ 2,220,862
State TIR Available for Reimbursement $ - $ 17,756 $ 293,169 $ 880,715 $ 889,712 $ 898,799 $ 907,976 $ 917,246 $ 926,608 $ 936,064 $ 945,614 $ 955,260 $ 965,002 $ 974,842 $ 984,780 $ 994,817 $ 1,004,955 $ 1,015,194 $ 1,025,536 $ 1,035,981 $ 1,046,530 $ 1,057,185 $ 1,067,947 $ 1,078,816 $ 1,089,794 $ 1,100,881 $ 1,112,080 $ 1,123,390 $ 1,134,814 $ 1,146,351 $ 1,158,005 $ 15,534,042
Total Local Incremental Revenue $ - $ 25,656 $ 423,604 $ 1,272,558 $ 1,285,557 $ 1,298,687 $ 1,311,948 $ 1,325,341 $ 1,338,869 $ 1,352,531 $ 1,366,331 $ 1,380,268 $ 1,394,345 $ 1,408,562 $ 1,422,922 $ 1,437,425 $ 1,452,074 $ 1,466,868 $ 1,481,811 $ 1,496,903 $ 1,512,146 $ 1,527,542 $ 1,543,091 $ 1,558,796 $ 1,574,658 $ 1,590,679 $ 1,606,860 $ 1,623,202 $ 1,639,708 $ 1,656,379 $ 1,673,217 $ 22,445,357
BRA Administrative Fee $ - $ 500 $ 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 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 170,500
Local TIR Available for Reimbursement $ - $ 25,156 $ 413,604 $ 1,262,558 $ 1,275,557 $ 1,288,687 $ 1,301,948 $ 1,315,341 $ 1,328,869 $ 1,342,531 $ 1,356,331 $ 1,370,268 $ 1,384,345 $ 1,398,562 $ 1,412,922 $ 1,427,425 $ 1,442,074 $ 1,456,868 $ 1,471,811 $ 1,486,903 $ 1,502,146 $ 1,517,542 $ 1,533,091 $ 1,548,796 $ 1,564,658 $ 1,580,679 $ 1,596,860 $ 1,613,202 $ 1,629,708 $ 1,646,379 $ 1,663,217 $ 22,274,857
Total State & Local TIR Available $ - $ 42,913 $ 706,772 $ 2,143,273 $ 2,165,269 $ 2,187,486 $ 2,209,924 $ 2,232,587 $ 2,255,477 $ 2,278,595 $ 2,301,945 $ 2,325,528 $ 2,349,347 $ 2,373,404 $ 2,397,702 $ 2,422,242 $ 2,447,028 $ 2,472,062 $ 2,497,347 $ 2,522,884 $ 2,548,676 $ 2,574,727 $ 2,601,038 $ 2,627,612 $ 2,654,452 $ 2,681,560 $ 2,708,939 $ 2,736,592 $ 2,764,522 $ 2,792,731 $ 2,821,222 $ 37,808,899
Beginning
DEVELOPER Balance
Developer Reimbursement Balance $ - $ - $ 7,702,221 $ 14,583,273 $ 22,669,709 $ 23,615,841 $ 24,239,723 $ 26,925,997 $ 26,603,113 $ 26,252,069 $ 25,871,335 $ 24,263,067 $ 21,937,539 $ 19,588,192 $ 17,214,788 $ 14,817,087 $ 12,394,844 $ 10,444,891 $ 9,437,424 $ 8,363,894 $ 7,220,840 $ 6,004,629 $ 4,711,441 $ 3,337,268 $ 1,877,896 $ 328,900 $ - $ - $ - $ - $ - $ -
Pre-Approved Environmental Costs $ 350,000 $ - $ 350,000 $ 322,441 $ -
State Tax Reimbursement $ 164,341 $ - $ 17,756 $ 146,584 $ - $ 164,341
Local Tax Reimbursement $ 201,013 $ - $ 25,156 $ 175,857 $ - $ 201,013
Interest (5%) $ 15,354 $ - $ 15,354 $ - $ - $ 15,354
Total EGLE Reimbursement Balance $ - $ 322,441 $ - $ - $ -
Non Environmental Costs $ 17,097,500 $ - $ 6,839,000 $ 12,310,200 $ 18,022,468 $ 17,798,374 $ 17,551,526 $ 17,280,673 $ 16,984,497 $ 16,661,613 $ 16,310,569 $ 15,929,835 $ 14,321,567 $ 11,996,039 $ 9,646,692 $ 7,273,288 $ 4,875,587 $ 2,453,344 $ 6,316
State Tax Reimbursement $ 9,998,447 $ - $ 440,358 $ 444,856 $ 449,399 $ 453,988 $ 458,623 $ 463,304 $ 468,032 $ 933,917 $ 955,260 $ 965,002 $ 974,842 $ 984,780 $ 994,817 $ 1,004,955 $ 6,316 $ 9,998,447
Local Tax Reimbursement $ 14,380,617 $ - $ 30,945 $ 631,279 $ 637,779 $ 644,343 $ 650,974 $ 657,671 $ 664,434 $ 671,266 $ 1,356,331 $ 1,370,268 $ 1,384,345 $ 1,398,562 $ 1,412,922 $ 1,427,425 $ 1,442,074 $ 14,380,617
Interest (5%)** $ 7,281,564 $ - $ 341,950 $ 613,963 $ 847,542 $ 835,787 $ 822,889 $ 808,786 $ 793,410 $ 776,694 $ 758,564 $ 681,979 $ 7,281,564
Total Non Environmental Reimbursement Balance $ - $ 7,180,950 $ 12,893,218 $ 17,798,374 $ 17,551,526 $ 17,280,673 $ 16,984,497 $ 16,661,613 $ 16,310,569 $ 15,929,835 $ 14,321,567 $ 11,996,039 $ 9,646,692 $ 7,273,288 $ 4,875,587 $ 2,453,344 $ 6,316 $ - $ - $ -
Local Only Costs $ 9,941,500 $ - $ 198,830 $ 1,690,055 $ 4,871,335 $ 6,064,315 $ 6,959,050 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 10,438,575 $ 9,437,424 $ 8,363,894 $ 7,220,840 $ 6,004,629 $ 4,711,441 $ 3,337,268 $ 1,877,896 $ 328,900
Local Tax Reimbursement $ 12,404,400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,450,552 $ 1,471,811 $ 1,486,903 $ 1,502,146 $ 1,517,542 $ 1,533,091 $ 1,548,796 $ 1,564,658 $ 328,900 $ 12,404,400
Interest (5%) $ 2,462,900 $ - $ 497,075 $ 449,401 $ 398,281 $ 343,850 $ 285,935 $ 224,354 $ 158,918 $ 89,424 $ 15,662 $ - $ 2,462,900
Total Non Environmental Reimbursement Balance $ - $ 198,830 $ 1,690,055 $ 4,871,335 $ 6,064,315 $ 6,959,050 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 10,438,575 $ 9,437,424 $ 8,363,894 $ 7,220,840 $ 6,004,629 $ 4,711,441 $ 3,337,268 $ 1,877,896 $ 328,900 $ - $ -
Total Annual Developer Reimbursement $ - $ 42,913 $ 353,386 $ 631,279 $ 637,779 $ 644,343 $ 1,104,962 $ 1,116,293 $ 1,127,738 $ 1,139,297 $ 2,290,248 $ 2,325,528 $ 2,349,347 $ 2,373,404 $ 2,397,702 $ 2,422,242 $ 2,447,028 $ 1,456,868 $ 1,471,811 $ 1,486,903 $ 1,502,146 $ 1,517,542 $ 1,533,091 $ 1,548,796 $ 1,564,658 $ 328,900 $ 35,814,206
Beginning
CITY OF MUSKEGON BONDED ACTIVITIES Balance
City of Muskegon Bond Reimbursement Balance $ - $ - $ 6,743,620 $ 6,709,746 $ 5,920,015 $ 5,079,249 $ 4,184,782 $ 3,233,811 $ 2,223,393 $ 1,150,437 $ 11,697 $ - $ - $ - $ -
Non Environmental Costs $ 6,743,620 $ - $ 6,743,620 $ 6,743,620 $ 6,709,746 $ 5,920,015 $ 5,079,249 $ 4,184,782 $ 3,233,811 $ 2,223,393 $ 1,150,437 $ 11,697
State Tax Reimbursement $ 3,336,841 $ - $ 146,584 $ 440,358 $ 444,856 $ 449,399 $ 453,988 $ 458,623 $ 463,304 $ 468,032 $ 11,697 $ 3,336,841
Local Tax Reimbursement $ 4,764,547 $ - $ - $ 206,802 $ 631,279 $ 637,779 $ 644,343 $ 650,974 $ 657,671 $ 664,434 $ 671,266 $ - $ 4,764,547
Interest (5%) $ 1,357,768 $ 319,512 $ 281,905 $ 241,869 $ 199,275 $ 153,991 $ 105,876 $ 54,783 $ 557 $ 1,357,768
Total Non-Environmental Reimbursement Balance $ - $ 6,743,620 $ 6,709,746 $ 5,920,015 $ 5,079,249 $ 4,184,782 $ 3,233,811 $ 2,223,393 $ 1,150,437 $ 11,697 $ - $ -
Total Annual City of Muskegon Reimbursement $ - $ - $ 353,386 $ 1,071,636 $ 1,082,635 $ 1,093,743 $ 1,104,962 $ 1,116,293 $ 1,127,738 $ 1,139,297 $ 11,697 $ - $ - $ - $ 8,101,388
* Up to five years of capture for LBRF Deposits after
eligible activities are reimbursed. May be taken from
Local TIR only.
358
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Attachment A
Brownfield Plan Resolution(s)
359
360
361
362
City of Muskegon
Brownfield Redevelopment Authority
Brownfield Plan Amendment for the
Adelaide Pointe Project at
1148 & 1204 West Western Avenue
Muskegon, Michigan
Approved by the City of Muskegon Brownfield Redevelopment Authority
Approved by the City of Muskegon Board of Commissioners
Prepared with the assistance of:
Fishbeck
1515 Arboretum Drive SE
Grand Rapids, Michigan 49546
616-464-3876
363
Table of Contents Fishbeck | Page i
1.0 Introduction ...................................................................................................................................................1
1.1 Proposed Redevelopment and Future Use for the Eligible Property ................................................1
1.2 Eligible Property Information ............................................................................................................1
2.0 Information Required by Section 13(2) of the Statute ...................................................................................2
2.1 Description of Costs to Be Paid for With Tax Increment Revenues ..................................................2
2.2 Summary of Eligible Activities ...........................................................................................................4
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues ..................................................5
2.4 Maximum Amount of Note or Bonded Indebtedness .......................................................................5
2.5 Duration of Brownfield Plan..............................................................................................................5
2.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdiction ..........................5
2.7 Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property..5
2.8 Estimates of Residents and Displacement of Individuals/Families....................................................5
2.9 Plan for Relocation of Displaced Persons..........................................................................................6
2.10 Provisions for Relocation Costs .........................................................................................................6
2.11 Strategy for Compliance with Michigan’s Relocation Assistance Law...............................................6
2.12 Other Material that the Authority or Governing Body Considers Pertinent .....................................6
List of Figures
Figure 1 – Location Map
Figure 2 – Site Layout Map
List of Tables
Table 1 – Tax Increment Revenue Capture
Table 2 – Tax Increment Revenue Reimbursement Allocation
List of Attachments
Attachment A Brownfield Plan Resolution(s)
Attachment B Conceptual Renderings
Attachment C Environmental Data Tables and Map
Attachment D Reimbursement Agreement
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1.0 Introduction
The City of Muskegon Brownfield Redevelopment Authority (the “Authority” or MBRA) was established by the City
of Muskegon pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as
amended (“Act 381”). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by
providing economic development incentives through tax increment financing for certain eligible properties.
This Brownfield Plan Amendment (“Plan Amendment”) serves as an amendment to the City of Muskegon’s
existing Brownfield Plan, allowing inclusion of the eligible property described in Sections 1.1 and 1.2 below.
Incorporation of eligible property into the City’s Brownfield Plan permits the use of tax increment financing to
reimburse Adelaide Pointe QOZB, LLC (“Developer”) for the cost of eligible activities required to redevelop the
eligible property. See Attachment A for copies of Plan Amendment resolutions.
1.1 Proposed Redevelopment and Future Use for the Eligible Property
The Developer is proposing to redevelop a former industrial site located at 1148 and 1204 West Western Avenue,
Muskegon, Michigan (the “Property”). Proposed redevelopment activities include: revitalizing existing site
structures for boat storage, busines offices, and lease space (approx. 218,000 sf); creation of a new 280 slip
marina and construction of a three-story, mixed-use building with ground level retail and office space, a second-
floor restaurant, and third floor deck area (approx. 7,500 sf); 50 boat condos (totaling approx. 250,000 gross sf);
and 250 - 300 residential condo units (averaging approx. 1,500 sf each) within a six building footprint (the
“Project”). The Project will create a walkable community that incorporates public access to waterfront activities
(e.g., swimming, fishing, boating), inviting greenspace areas, and transient docking. Sustainable development
techniques are proposed throughout the Project, including solar boardwalks and roof systems, electric vehicle
charging stations, low-impact development stormwater management, and integrated parking. Total private
investment, not including property acquisition, is approximately $250,000,000. The mixed-use waterfront
development will create approximately 100 new jobs (retail, office, restaurant, marina) and provide contractor
work for hundreds of temporary construction workers. Conceptual renderings are provided in Attachment B.
The structured five-phase development is summarized in the table below.
Development Phase Anticipated Start Date Desired Completion Date
Phase I – Revitalize existing buildings for boat storage Spring/Summer 2021 Summer/Fall 2021
Phase II – Creation of forklift in/out service Spring 2022 Spring/Summer 2022
Phase III – Construction of marina, mixed-use building Spring 2022 Fall 2022
Phase IV – Construction of 50 boat storage and Spring 2024 Fall 2027
warehouse
Phase V – Construction of residential condos Spring 2025 Fall 2030
1.2 Eligible Property Information
The 35-acre Property is located at the west end of West Western Avenue on the south shore of Muskegon Lake.
Since the late 1800s, the Property has been utilized for industrial purposes, primarily a lumberyard followed by
foundry operations. Based on a recent Phase II Environmental Site Assessment (ESA) completed in December
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October 5, 2021 Fishbeck | Page 2
2020, these past industrial uses have resulted in widespread contamination across the Property. Known
contaminants in the soil with concentrations exceeding Michigan Department of Environment, Great Lakes, and
Energy (EGLE) Part 201 Generic Residential Cleanup Criteria (GRCC) include tetrachloroethylene (PCE), arsenic,
cadmium, chromium (total), copper, and selenium. Groundwater contaminants with concentrations identified
above Part 201 GRCC consist of benzene, cadmium, chromium (total), copper, lead, mercury, and zinc.
The Developer is not a liable party and completed a Baseline Environmental Assessment (BEA) in accordance with
Part 201 of the Natural Resources and Environmental Protect Act, 1995 PA 451, as amended (NREPA).
Given the known contamination, the Property is a “facility” pursuant to Part 201 of NREPA. As such, it is
considered an “eligible property” as defined by the Michigan Redevelopment Financing Act, Act 381 of 1996.
Maps depicting the location and layout of the Property are attached as Figures 1 and 2. Environmental data
tables and map are provided in Attachment C.
2.0 Information Required by Section 13(2) of the Statute
2.1 Description of Costs to Be Paid for With Tax Increment Revenues
Act 381 provides pre-approval for certain activities that have been conducted at the Property. Additional activities
require BRA approval for reimbursement from local, school operating, and state education taxes. Tax increment
revenues will be used to reimburse the Developer and the City of Muskegon for the following eligible activities.
• Pre-approved BEA, documentation of due care, asbestos/lead paint survey, and additional due care
assessment
• Due care activities
• Asbestos, lead paint, and mold abatement
• Select building and site demolition
• Site preparation
• Infrastructure improvements (public)- Developer & City
• 15% contingency
• Brownfield Plan Amendment
• Brownfield Plan Amendment Implementation
• Interest
The table below provides an eligible activity cost summary for the Project.
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ELIGIBLE ACTIVITIES COST SUMMARY
EGLE Eligible Activities Estimated Cost
Department Specific Activities
$350,000
1. Pre-Approved Sub-Total
$52,000
a. BEA activities
$33,000
b. Documentation of due care
$20,000
c. Hazardous materials survey (e.g., asbestos, lead paint, etc.)
d. Due care assessment
$245,000
EGLE Eligible Activities Total Costs $350,000
Interest (5%) $15,354
EGLE Eligible Costs Sub-Total $365,354
Local Only Eligible Activities Estimated Cost
Department Specific Activities
2. Due Care Sub-Total $3,250,000
a. Vapor intrusion mitigation $500,000
b. Soil capping $1,500,000
c. Dewatering $250,000
d. Contaminated Soil/Dredge Materials Removal and Disposal $1,000,000
Local Only Department Specific Activities Total Costs $3,250,000
Non-Environmental Activities
3. Asbestos, lead paint, and mold abatement Sub-Total $1,250,000
4. Demolition (select interior and site grounds) Sub-Total $1,500,000
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5. Site preparation Sub-Total $5,545,000
a. Clearing and grubbing $300,000
b. Dredging $800,000
c. Compaction and sub-base preparation $350,000
d. Cut and fill $300,000
e. Excavation for unstable material $70,000
f. Fill $850,000
g. Geotechnical engineering $180,000
h. Grading/land balancing $1,250,000
i. Relocation of active utilities $350,000
j. Temporary erosion control $110,000
k. Temporary facility $165,000
l. Temporary site control $195,000
m. Surveying and staking $125,000
n. Architectural/engineering costs related to eligible activities $500,000
6. Infrastructure improvements (Public) $13,000,000
a. Marina basin (breakwater system/gangway/dockage) $10,000,000
b. Parks (Linear Park, East Peninsula Park, Commuter Bike $2,000,000
Path)
c. East Basin Launch Well $1,000,000
Local Only Non-Environmental Activities Total Costs $21,295,000
EGLE and Local Only Eligible Costs Sub-Total $24,910,354
Contingency (15%)* $3,681,750
Brownfield Plan Amendment Preparation $10,000
Brownfield Plan Amendment Implementation $10,000
Interest (5%) $25,554,653
Total EGLE and Local Only Eligible Costs $54,166,757
*Not applied to previously completed Department Specific Activities
ELIGIBLE ACTIVITIES COST SUMMARY- City of Muskegon Bond
Local Only Activities Total Costs
1. Public Infrastructure (sub-total) $10,000,000
a. Roadways (Adelaide Point Ave, East Circle Drive, West $6,840,000
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Circle Drive, Adelaide Point Drive, South Circle Drive)
b. West Western Reconfiguration $1,035,000
c. East Basin Launch Well $1,615,000
2. Site Preparation (sub-total)
a. Mass Grade Site $510,000
Local Only Non-Environmental Activities Total Costs $10,000,000
Interest (5%) $2,608,621
Total City of Muskegon Bond Eligible Costs $12,608,621
2.2 Summary of Eligible Activities
Eligible activities as defined by Act 381 and included in this Plan Amendment consist of the following:
Pre-Approved Activities: These activities are permitted to occur prior to Plan Amendment approval. Preparation
of a Phase I ESA, BEA and Documentation of Due Care Compliance are necessary to protect the new Property
owner/Developer from liability for environmental contamination. A Hazardous Materials Investigation was
conducted to evaluate potential asbestos, lead paint, and other materials, as required by regulatory agencies
prior to select building demolition activities. Due care assessment will be conducted to verify compliance with
applicable due care obligations. Pre-approved activities can be reimbursed from state school and local tax
increment revenues.
Due Care Activities: Due care activities will include implementation of vapor intrusion mitigation systems, as
applicable, to prevent unacceptable exposures to potential indoor air inhalation concerns. Soil capping will be
completed to protect against direct contact concerns related to known contamination. Contaminated
soils/dredge materials which cannot be utilized on the Site will be hauled to an appropriate Type 2 landfill for
disposal. During construction activities, dewatering may be necessary. Contaminated groundwater will be
properly managed to comply with due care. Due care costs will include environmental oversight and
management.
Asbestos, Lead Paint, and Mold Abatement: As applicable, and prior to select building demolition activities,
asbestos, lead paint, and mold must be abated in accordance with applicable regulatory guidelines.
Demolition: Select building and Site demolition will be necessary to facilitate safe redevelopment and reuse of the
Property.
Site Preparation: Site preparation is expected to include clearing and grubbing, dredging, compaction and sub-base
preparation, cut and fill, excavation for unstable material, fill, geotechnical engineering, grading, land balancing,
relocation of active utilities, temporary erosion control, temporary facility, temporary site control, surveying,
staking and associated professional fees.
Public Infrastructure Improvements: Infrastructure improvements will include marina launch and basin
enhancements, sidewalks, bike paths, boardwalks, fishing docks, roadways, curb and gutter, lighting, landscaping,
irrigation, low-impact design stormwater management, utilities, and other streetscape improvements. Costs will
include oversight, management, and associated professional fees.
Plan Amendment Preparation: This Plan Amendment was required for authorization of reimbursement to the
Developer from tax increment revenues under Public Act 381 of 1996, as amended.
Plan Amendment Implementation: Tracking, submittal, review of invoices for reimbursement, plan compliance,
and data reporting will be conducted.
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Contingency: A 15% contingency is included for those activities not already completed.
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues
For the purposes of this Plan Amendment, the taxable value base year is 2021. The 2021 taxable value of the
eligible property is $903,810. After completion of the development, the taxable value is estimated at
$87,500,000. This Plan Amendment assumes a 1.0% annual increase in the taxable value of the eligible property.
Initial capture is anticipated to begin in 2022.
The estimated captured taxable value for the redevelopment by year and in aggregate for each taxing jurisdiction
is depicted in tabular form (Table 1: Tax Increment Revenue Capture). Actual taxable values and tax increment
revenues may vary year to year based on economic and market conditions, tax incentives, building additions, and
property improvements, among other factors.
A summary of the estimated reimbursement schedule by year and in aggregate is presented as Table 2: Tax
Increment Revenue Reimbursement Allocation.
Method of Financing and Description of Advances Made by the Municipality
The cost of the eligible activities included in this Plan Amendment will be paid for by the Developer and the City of
Muskegon. The Developer and City of Muskegon will seek reimbursement for eligible activity costs through
capture of available local and state (as applicable) tax increment revenues as permitted by Act 381. Additionally,
as necessary personal property taxes may be utilized as well for reimbursement. Refer to Attachment D for a copy
of the Reimbursement Agreement.
2.4 Maximum Amount of Note or Bonded Indebtedness
The City of Muskegon plans to utilize bond proceeds to pay for certain eligible site preparation and public
infrastructure costs incurred by the City, which will be repaid via tax increment revenues generated by
redevelopment of the Site, and subject to the Reimbursement/Development Agreement. Refer to the table in
Section 2.1 for additional information relative to the costs and breakdown of costs associated with the bond.
Refer to Table 2 for the reimbursement schedule.
2.5 Duration of Brownfield Plan
Capture of tax increment revenues for City reimbursement is anticipated to commence in 2023 and end in 2029.
Developer reimbursement will follow with an estimated start date of 2029. The anticipated end date for
Developer reimbursement is 2048. It is projected that the Plan Amendment will extend 30 years, which assumes
four years of additional capture of tax increment revenues for deposit into a Local Brownfield Revolving Fund, if
available.
2.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing
Jurisdiction
The estimated amount of tax increment revenues to be captured for this redevelopment from each taxing
jurisdiction by year and in aggregate is presented in Tables 1 and 2.
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2.7 Legal Description, Property Map, Statement of Qualifying Characteristics and
Personal Property
• The legal description is as follows:
1148 W. Western Avenue
COM AT SE COR LOT 4 BLK 577 FOR POB TH N 1 DEG 41 MIN W 158.40 FT TH N 76 DEG 43 MIN W 103.55
FT TH NWLY ON THE ARC OF A 492.47 FT RAD CURVE TO THE RT 110.31 FT (LONG CORD BEARS N 70D
18M W 110.07 FT CENTRAL ANGLE IS 12D 50M 00S) TH N 63 DEG 53 MIN W 67 FT TH N 2 DEG 4 MIN W
33.8 FT TO RR R/W TH CON'T N 2 DEG 4 MIN W 367.7 FT TH N 37 DEG W 730 FT
1204 W. Western Avenue
PART OF SECTION 25 T10N R17W PRT OF BLKS 578-580DESC AS FOLS COM AT SE COR LOT 4 BLK 577
TH S 88D 15M W ALG SLY LN SD BLK 577 EXTND (ALSO BEING NLY LN WESTERN AVE) 847.15 FT FOR POB
TH N 01D 56M 50S W 256.10 FT TH N 31D 37M 35S E 47 FT TH N 55D 15M 15S E 89.20 FT TH N 35D 54M
50S W 127.65 FT TH N 02D 52M 10S W 553 FT TH S 55D 13 M W 243 FTCOM 375 FT N OF SW COR OF SW
¼ OF NW ¼, TH N TO A POINT745 FT S OF NW COR, TH E 225 FT, TH S TO A POINT DUE E OF POB; TH W
225 FT TO POB. SEC 16, T10N RSW. 1.03 AC M/L.
• The Property layout is depicted on Figure 2.
• The Property is considered an “eligible property” as defined by Act 381 because the Property is a facility
pursuant to Part 201. Facility verification is included in Attachment C.
• New personal property added to the Property is included as part of the Eligible Property to the extent it is
taxable.
2.8 Estimates of Residents and Displacement of Individuals/Families
No residents or families will be displaced because of the Project.
2.9 Plan for Relocation of Displaced Persons
Not applicable.
2.10 Provisions for Relocation Costs
Not applicable.
2.11 Strategy for Compliance with Michigan’s Relocation Assistance Law
Not applicable.
2.12 Other Material that the Authority or Governing Body Considers Pertinent
The Project will significantly improve the Muskegon Lake shoreline through revitalization of Property once used
for industrial purposes. Existing structures will be revitalized, and environmental exposure risks mitigated. A new
marina with transient boat slips will provide boaters with opportunities to access the vibrant Muskegon
downtown and other nearby recreational activities. Construction of new boat storage and residential
condominiums will expand Muskegon Lake access and increase long-term tax revenues for the City of Muskegon
and the State of Michigan. The Development will also create numerous job opportunities for the community.
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371
Figure 1
Location Map
372
VICINITY MAP
MICHIGAN
CITY OF
MUSKEGON
_
^
MUSKEGON COUNTY
Hard copy is
intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
Baseline Environmental Assessment
Leestma Management, LLC
SITE
PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\FIG01_LocationMap.mxd Date: 12/11/2020 4:33:47 PM User: bahannah
PROJECT NO.
201515
LOCATION MAP
1
FIGURE NO.
FEET
NORTH 0 1,000 2,000
© OpenStreetMap (and) contributors, CC-BY-SA
©Copyright 2020 All Rights Reserved
373
Figure 2
Site Layout Map
374
LEGEND
Approximate Property Boundary
Hard copy is
intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
1148 & 1204 West Western Ave., Muskegon, Muskegon County, MI
Leesta Management, LLC
Baseline Environmental Assessment
PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\FIG03_SiteMap.mxd Date: 12/11/2020 4:43:23 PM User: bahannah
PROJECT NO.
SITE MAP
201515
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus
DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, FIGURE NO.
Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE,
FEET
Garmin, (c) OpenStreetMapNORTH 0 and the
contributors, 150
GIS user300
2
community
©Copyright 2020 All Rights Reserved
375
Table 1
Tax Increment Revenue Capture
376
Table 1 - Estimate of Total Incremental Taxes Available for Capture 1 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate: 1%
Plan Year 0 1 2 3 4 5 6 7 8 9 10
Calendar Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Base Taxable Value $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810
Estimated New TV $ - $ 1,750,000 $ 14,875,000 $ 42,875,000 $ 53,375,000 $ 61,250,000 $ 87,500,000 $ 88,375,000 $ 89,258,750 $ 90,151,338 $ 91,052,851
Incremental Difference (New TV - Base TV)1 $ - $ 846,190 $ 13,971,190 $ 41,971,190 $ 52,471,190 $ 60,346,190 $ 86,596,190 $ 87,471,190 $ 88,354,940 $ 89,247,528 $ 90,149,041
School Capture Millage Rate
State Education Tax (SET) 6.00000 $ - $ 5,077 $ 83,827 $ 251,827 $ 314,827 $ 362,077 $ 519,577 $ 524,827 $ 530,130 $ 535,485 $ 540,894
School Operating Tax 17.98380 $ - $ 15,218 $ 251,255 $ 754,801 $ 943,631 $ 1,085,254 $ 1,557,329 $ 1,573,064 $ 1,588,958 $ 1,605,010 $ 1,621,222
School Total 23.9838 $ - $ 20,295 $ 335,082 $ 1,006,629 $ 1,258,459 $ 1,447,331 $ 2,076,906 $ 2,097,892 $ 2,119,087 $ 2,140,495 $ 2,162,117
Local Capture Millage Rate
County Museum 0.32200 $ - $ 272 $ 4,499 $ 13,515 $ 16,896 $ 19,431 $ 27,884 $ 28,166 $ 28,450 $ 28,738 $ 29,028
County Veterans 0.07150 $ - $ 61 $ 999 $ 3,001 $ 3,752 $ 4,315 $ 6,192 $ 6,254 $ 6,317 $ 6,381 $ 6,446
Senior Citzens Services 0.49990 $ - $ 423 $ 6,984 $ 20,981 $ 26,230 $ 30,167 $ 43,289 $ 43,727 $ 44,169 $ 44,615 $ 45,066
Central Dispatch 0.29999 $ - $ 254 $ 4,191 $ 12,591 $ 15,741 $ 18,103 $ 25,978 $ 26,240 $ 26,506 $ 26,773 $ 27,044
Community College 2.20340 $ - $ 1,864 $ 30,784 $ 92,479 $ 115,615 $ 132,967 $ 190,806 $ 192,734 $ 194,681 $ 196,648 $ 198,634
M.A.I.S.D 4.75410 $ - $ 4,023 $ 66,420 $ 199,535 $ 249,453 $ 286,892 $ 411,687 $ 415,847 $ 420,048 $ 424,292 $ 428,578
City Operating 10.07540 $ - $ 8,526 $ 140,765 $ 422,877 $ 528,668 $ 608,012 $ 872,491 $ 881,307 $ 890,211 $ 899,205 $ 908,288
City Sanitation 2.99790 $ - $ 2,537 $ 41,884 $ 125,825 $ 157,303 $ 180,912 $ 259,607 $ 262,230 $ 264,879 $ 267,555 $ 270,258
Hackley Library 2.39970 $ - $ 2,031 $ 33,527 $ 100,718 $ 125,915 $ 144,813 $ 207,805 $ 209,905 $ 212,025 $ 214,167 $ 216,331
MPS Sinking 0.99810 $ - $ 845 $ 13,945 $ 41,891 $ 52,371 $ 60,232 $ 86,432 $ 87,305 $ 88,187 $ 89,078 $ 89,978
County Operating 5.69780 $ - $ 4,821 $ 79,605 $ 239,143 $ 298,970 $ 343,841 $ 493,408 $ 498,393 $ 503,429 $ 508,515 $ 513,651
Local Total 30.3198 $ - $ 25,656 $ 423,604 $ 1,272,558 $ 1,590,915 $ 1,829,684 $ 2,625,578 $ 2,652,108 $ 2,678,903 $ 2,705,966 $ 2,733,300
Non-Capturable Millages Millage Rate
Community College Debt 0.34000 $ - $ 288 $ 4,750 $ 14,270 $ 17,840 $ 20,518 $ 29,443 $ 29,740 $ 30,041 $ 30,344 $ 30,651
Hackley Debt 0.45320 $ - $ 383 $ 6,332 $ 19,021 $ 23,780 $ 27,349 $ 39,245 $ 39,642 $ 40,042 $ 40,447 $ 40,856
MPS Debt - 1995 3.86000 $ - $ 3,266 $ 53,929 $ 162,009 $ 202,539 $ 232,936 $ 334,261 $ 337,639 $ 341,050 $ 344,495 $ 347,975
MPS Debt - 2009 3.50000 $ - $ 2,962 $ 48,899 $ 146,899 $ 183,649 $ 211,212 $ 303,087 $ 306,149 $ 309,242 $ 312,366 $ 315,522
Total Non-Capturable Taxes 8.1532 $ - $ 6,899 $ 113,910 $ 342,200 $ 427,808 $ 492,015 $ 706,036 $ 713,170 $ 720,375 $ 727,653 $ 735,003
1
Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture $ - $ 45,951 $ 758,686 $ 2,279,186 $ 2,849,374 $ 3,277,015 $ 4,702,484 $ 4,750,000 $ 4,797,990 $ 4,846,461 $ 4,895,417
Notes-
Table 2 assumes incremental annual investment with
project completion in 2030.
For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overal investment
of $250,000,000
377TBL03_TIF_ Adelaide rev 100421, 10 mil Bond.xlsx
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Table 1 - Estimate of Total Incremental Taxes Available for Capture 2 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate:
Plan Year 11 12 13 14 15 16 17 18 19 20 21 22
Calendar Year 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
Base Taxable Value $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810
Estimated New TV $ 91,963,379 $ 92,883,013 $ 93,811,843 $ 94,749,962 $ 95,697,461 $ 96,654,436 $ 97,620,980 $ 98,597,190 $ 99,583,162 $ 100,578,994 $ 101,584,784 $ 102,600,631
Incremental Difference (New TV - Base TV)1 $ 91,059,569 $ 91,979,203 $ 92,908,033 $ 93,846,152 $ 94,793,651 $ 95,750,626 $ 96,717,170 $ 97,693,380 $ 98,679,352 $ 99,675,184 $ 100,680,974 $ 101,696,821
School Capture Millage Rate
State Education Tax (SET) 6.00000 $ 546,357 $ 551,875 $ 557,448 $ 563,077 $ 568,762 $ 574,504 $ 580,303 $ 586,160 $ 592,076 $ 598,051 $ 604,086 $ 610,181
School Operating Tax 17.98380 $ 1,637,597 $ 1,654,136 $ 1,670,839 $ 1,687,710 $ 1,704,750 $ 1,721,960 $ 1,739,342 $ 1,756,898 $ 1,774,630 $ 1,792,539 $ 1,810,626 $ 1,828,895
School Total 23.9838 $ 2,183,955 $ 2,206,011 $ 2,228,288 $ 2,250,787 $ 2,273,512 $ 2,296,464 $ 2,319,645 $ 2,343,058 $ 2,366,706 $ 2,390,590 $ 2,414,712 $ 2,439,076
Local Capture Millage Rate
County Museum 0.32200 $ 29,321 $ 29,617 $ 29,916 $ 30,218 $ 30,524 $ 30,832 $ 31,143 $ 31,457 $ 31,775 $ 32,095 $ 32,419 $ 32,746
County Veterans 0.07150 $ 6,511 $ 6,577 $ 6,643 $ 6,710 $ 6,778 $ 6,846 $ 6,915 $ 6,985 $ 7,056 $ 7,127 $ 7,199 $ 7,271
Senior Citzens Services 0.49990 $ 45,521 $ 45,980 $ 46,445 $ 46,914 $ 47,387 $ 47,866 $ 48,349 $ 48,837 $ 49,330 $ 49,828 $ 50,330 $ 50,838
Central Dispatch 0.29999 $ 27,317 $ 27,593 $ 27,871 $ 28,153 $ 28,437 $ 28,724 $ 29,014 $ 29,307 $ 29,603 $ 29,902 $ 30,203 $ 30,508
Community College 2.20340 $ 200,641 $ 202,667 $ 204,714 $ 206,781 $ 208,868 $ 210,977 $ 213,107 $ 215,258 $ 217,430 $ 219,624 $ 221,840 $ 224,079
M.A.I.S.D 4.75410 $ 432,906 $ 437,278 $ 441,694 $ 446,154 $ 450,658 $ 455,208 $ 459,803 $ 464,444 $ 469,132 $ 473,866 $ 478,647 $ 483,477
City Operating 10.07540 $ 917,462 $ 926,727 $ 936,086 $ 945,538 $ 955,084 $ 964,726 $ 974,464 $ 984,300 $ 994,234 $ 1,004,267 $ 1,014,401 $ 1,024,636
City Sanitation 2.99790 $ 272,987 $ 275,744 $ 278,529 $ 281,341 $ 284,182 $ 287,051 $ 289,948 $ 292,875 $ 295,831 $ 298,816 $ 301,831 $ 304,877
Hackley Library 2.39970 $ 218,516 $ 220,722 $ 222,951 $ 225,203 $ 227,476 $ 229,773 $ 232,092 $ 234,435 $ 236,801 $ 239,191 $ 241,604 $ 244,042
MPS Sinking 0.99810 $ 90,887 $ 91,804 $ 92,732 $ 93,668 $ 94,614 $ 95,569 $ 96,533 $ 97,508 $ 98,492 $ 99,486 $ 100,490 $ 101,504
County Operating 5.69780 $ 518,839 $ 524,079 $ 529,371 $ 534,717 $ 540,115 $ 545,568 $ 551,075 $ 556,637 $ 562,255 $ 567,929 $ 573,660 $ 579,448
Local Total 30.3198 $ 2,760,907 $ 2,788,790 $ 2,816,952 $ 2,845,396 $ 2,874,124 $ 2,903,139 $ 2,932,444 $ 2,962,043 $ 2,991,937 $ 3,022,131 $ 3,052,626 $ 3,083,426
Non-Capturable Millages Millage Rate
Community College Debt 0.34000 $ 30,960 $ 31,273 $ 31,589 $ 31,908 $ 32,230 $ 32,555 $ 32,884 $ 33,216 $ 33,551 $ 33,890 $ 34,232 $ 34,577
Hackley Debt 0.45320 $ 41,268 $ 41,685 $ 42,106 $ 42,531 $ 42,960 $ 43,394 $ 43,832 $ 44,275 $ 44,721 $ 45,173 $ 45,629 $ 46,089
MPS Debt - 1995 3.86000 $ 351,490 $ 355,040 $ 358,625 $ 362,246 $ 365,903 $ 369,597 $ 373,328 $ 377,096 $ 380,902 $ 384,746 $ 388,629 $ 392,550
MPS Debt - 2009 3.50000 $ 318,708 $ 321,927 $ 325,178 $ 328,462 $ 331,778 $ 335,127 $ 338,510 $ 341,927 $ 345,378 $ 348,863 $ 352,383 $ 355,939
Total Non-Capturable Taxes 8.1532 $ 742,427 $ 749,925 $ 757,498 $ 765,146 $ 772,872 $ 780,674 $ 788,554 $ 796,514 $ 804,552 $ 812,672 $ 820,872 $ 829,155
1
Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture $ 4,944,862 $ 4,994,801 $ 5,045,240 $ 5,096,183 $ 5,147,636 $ 5,199,603 $ 5,252,090 $ 5,305,101 $ 5,358,643 $ 5,412,720 $ 5,467,338 $ 5,522,502
Notes-
Table 2 assumes incremental annual investment with
project completion in 2030.
For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overal investment
of $250,000,000
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Table 1 - Estimate of Total Incremental Taxes Available for Capture 3 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Taxable Value (TV) Increase Rate:
Plan Year 23 24 25 26 27 28 29 30 TOTAL
Calendar Year 2044 2045 2046 2047 2048 2049 2050 2051
Base Taxable Value $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ 903,810 $ -
Estimated New TV $ 103,626,638 $ 104,662,904 $ 105,709,533 $ 106,766,628 $ 107,834,295 $ 108,912,638 $ 110,001,764 $ 111,101,782 $ -
Incremental Difference (New TV - Base TV)1 $ 102,722,828 $ 103,759,094 $ 104,805,723 $ 105,862,818 $ 106,930,485 $ 108,008,828 $ 109,097,954 $ 110,197,972 $ -
School Capture Millage Rate
State Education Tax (SET) 6.00000 $ 616,337 $ 622,555 $ 628,834 $ 635,177 $ 641,583 $ 648,053 $ 654,588 $ 661,188 $ 15,709,744
School Operating Tax 17.98380 $ 1,847,347 $ 1,865,983 $ 1,884,805 $ 1,903,816 $ 1,923,016 $ 1,942,409 $ 1,961,996 $ 1,981,778 $ 47,086,816
School Total 23.9838 $ 2,463,684 $ 2,488,537 $ 2,513,640 $ 2,538,993 $ 2,564,599 $ 2,590,462 $ 2,616,584 $ 2,642,966 $ 62,796,559
Local Capture Millage Rate
County Museum 0.32200 $ 33,077 $ 33,410 $ 33,747 $ 34,088 $ 34,432 $ 34,779 $ 35,130 $ 35,484 $ 843,090
County Veterans 0.07150 $ 7,345 $ 7,419 $ 7,494 $ 7,569 $ 7,646 $ 7,723 $ 7,801 $ 7,879 $ 187,208
Senior Citzens Services 0.49990 $ 51,351 $ 51,869 $ 52,392 $ 52,921 $ 53,455 $ 53,994 $ 54,538 $ 55,088 $ 1,308,883
Central Dispatch 0.29999 $ 30,816 $ 31,127 $ 31,441 $ 31,758 $ 32,078 $ 32,402 $ 32,728 $ 33,058 $ 785,461
Community College 2.20340 $ 226,339 $ 228,623 $ 230,929 $ 233,258 $ 235,611 $ 237,987 $ 240,386 $ 242,810 $ 5,769,142
M.A.I.S.D 4.75410 $ 488,355 $ 493,281 $ 498,257 $ 503,282 $ 508,358 $ 513,485 $ 518,663 $ 523,892 $ 12,447,616
City Operating 10.07540 $ 1,034,974 $ 1,045,414 $ 1,055,960 $ 1,066,610 $ 1,077,367 $ 1,088,232 $ 1,099,206 $ 1,110,289 $ 26,380,326
City Sanitation 2.99790 $ 307,953 $ 311,059 $ 314,197 $ 317,366 $ 320,567 $ 323,800 $ 327,065 $ 330,362 $ 7,849,374
Hackley Library 2.39970 $ 246,504 $ 248,991 $ 251,502 $ 254,039 $ 256,601 $ 259,189 $ 261,802 $ 264,442 $ 6,283,112
MPS Sinking 0.99810 $ 102,528 $ 103,562 $ 104,607 $ 105,662 $ 106,727 $ 107,804 $ 108,891 $ 109,989 $ 2,613,316
County Operating 5.69780 $ 585,294 $ 591,199 $ 597,162 $ 603,185 $ 609,269 $ 615,413 $ 621,618 $ 627,886 $ 14,918,497
Local Total 30.3198 $ 3,114,535 $ 3,145,954 $ 3,177,688 $ 3,209,738 $ 3,242,110 $ 3,274,805 $ 3,307,827 $ 3,341,179 $ 79,386,023
Non-Capturable Millages Millage Rate
Community College Debt 0.34000 $ 34,926 $ 35,278 $ 35,634 $ 35,993 $ 36,356 $ 36,723 $ 37,093 $ 37,467 $ 890,219
Hackley Debt 0.45320 $ 46,554 $ 47,024 $ 47,498 $ 47,977 $ 48,461 $ 48,950 $ 49,443 $ 49,942 $ 1,186,609
MPS Debt - 1995 3.86000 $ 396,510 $ 400,510 $ 404,550 $ 408,630 $ 412,752 $ 416,914 $ 421,118 $ 425,364 $ 10,106,602
MPS Debt - 2009 3.50000 $ 359,530 $ 363,157 $ 366,820 $ 370,520 $ 374,257 $ 378,031 $ 381,843 $ 385,693 $ 9,164,017
Total Non-Capturable Taxes 8.1532 $ 837,520 $ 845,969 $ 854,502 $ 863,121 $ 871,826 $ 880,618 $ 889,497 $ 898,466 $ 21,347,447
1
Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture $ 5,578,218 $ 5,634,491 $ 5,691,327 $ 5,748,731 $ 5,806,709 $ 5,865,267 $ 5,924,411 $ 5,984,145 ##########
Notes-
Table 2 assumes incremental annual investment with
project completion in 2030.
For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overal investment
of $250,000,000
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Table 2
Tax Increment Revenue Reimbursement Allocation
380
Table 2 - Estimate of Total Incremental Taxes Available for Reimbursement 1 of 2
1148 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Developer
Maximum School &
Reimbursement Local Taxes
State $ 178,977
Local 66,596,401 Estimated Years of Capture: 30 years (including 5 years for LBF capture)
TOTAL $ 66,775,378
EGLE N/A
MSF N/A
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
Total State Incremental Revenue $ - $ 20,295 $ 335,082 $ 1,006,629 $ 1,258,459 $ 1,447,331 $ 2,076,906 $ 2,097,892 $ 2,119,087 $ 2,140,495 $ 2,162,117 $ 2,183,955 $ 2,206,011 $ 2,228,288 $ 2,250,787 $ 2,273,512 $ 2,296,464 $ 2,319,645 $ 2,343,058 $ 2,366,706 $ 2,390,590 $ 2,414,712
State Brownfield Redevelopment Fund (50% of SET) $ - $ 2,539 $ 41,914
State TIR Available for Reimbursement $ - $ 17,756 $ 293,169 $ 1,006,629 $ 1,258,459 $ 1,447,331 $ 2,076,906 $ 2,097,892 $ 2,119,087 $ 2,140,495 $ 2,162,117 $ 2,183,955 $ 2,206,011 $ 2,228,288 $ 2,250,787 $ 2,273,512 $ 2,296,464 $ 2,319,645 $ 2,343,058 $ 2,366,706 $ 2,390,590 $ 2,414,712
Total Local Incremental Revenue $ - $ 25,656 $ 423,604 $ 1,272,558 $ 1,590,915 $ 1,829,684 $ 2,625,578 $ 2,652,108 $ 2,678,903 $ 2,705,966 $ 2,733,300 $ 2,760,907 $ 2,788,790 $ 2,816,952 $ 2,845,396 $ 2,874,124 $ 2,903,139 $ 2,932,444 $ 2,962,043 $ 2,991,937 $ 3,022,131 $ 3,052,626
BRA Administrative Fee $ - $ 500 $ 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
Local TIR Available for Reimbursement $ - $ 25,156 $ 413,604 $ 1,262,558 $ 1,580,915 $ 1,819,684 $ 2,615,578 $ 2,642,108 $ 2,668,903 $ 2,695,966 $ 2,723,300 $ 2,750,907 $ 2,778,790 $ 2,806,952 $ 2,835,396 $ 2,864,124 $ 2,893,139 $ 2,922,444 $ 2,952,043 $ 2,981,937 $ 3,012,131 $ 3,042,626
Total State & Local TIR Available $ - $ 42,913 $ 706,772 $ 2,269,186 $ 2,839,374 $ 3,267,015 $ 4,692,484 $ 4,740,000 $ 4,787,990 $ 4,836,461 $ 4,885,417 $ 4,934,862 $ 4,984,801 $ 5,035,240 $ 5,086,183 $ 5,137,636 $ 5,189,603 $ 5,242,090 $ 5,295,101 $ 5,348,643 $ 5,402,720 $ 5,457,338
Beginning
DEVELOPER Balance
Developer Reimbursement Balance $ - $ - $ 915,624 $ 5,071,705 $ 14,816,198 $ 19,116,098 $ 22,741,220 $ 32,776,007 $ 34,414,807 $ 35,890,364 $ 34,854,118 $ 33,737,359 $ 32,535,775 $ 31,244,833 $ 29,859,775 $ 28,375,599 $ 26,787,049 $ 25,088,606 $ 23,274,470 $ 21,338,548 $ 19,274,442 $ 17,075,427 $ 14,734,441
Pre-Approved Environmental Costs $ 350,000 $ - $ 350,000 $ 322,442 $ -
State Tax Reimbursement $ 178,977 $ - $ 17,756 $ 161,221 $ -
Local Tax Reimbursement $ 186,377 $ - $ 25,156 $ 161,221 $ -
Interest (5%) $ 15,354 $ - $ 15,354 $ -
Total EGLE Reimbursement Balance $ - $ 322,442 $ - $ -
Local Only Costs $ 28,246,750 $ - $ 564,935 $ 4,830,195 $ 14,110,665 $ 18,205,808 $ 21,658,305 $ 31,215,245 $ 32,776,007 $ 34,414,807 $ 35,890,364 $ 34,854,118 $ 33,737,359 $ 32,535,775 $ 31,244,833 $ 29,859,775 $ 28,375,599 $ 26,787,049 $ 25,088,606 $ 23,274,470 $ 21,338,548 $ 19,274,442 $ 17,075,427
Local Tax Reimbursement $ 53,801,403 $ - $ - $ - $ - $ - $ - $ - $ - $ 233,508 $ 2,695,966 $ 2,723,300 $ 2,750,907 $ 2,778,790 $ 2,806,952 $ 2,835,396 $ 2,864,124 $ 2,893,139 $ 2,922,444 $ 2,952,043 $ 2,981,937 $ 3,012,131 $ 3,042,626
Interest (5%) $ 25,554,653 $ - $ 28,247 $ 241,510 $ 705,533 $ 910,290 $ 1,082,915 $ 1,560,762 $ 1,638,800 $ 1,709,065 $ 1,659,720 $ 1,606,541 $ 1,549,323 $ 1,487,849 $ 1,421,894 $ 1,351,219 $ 1,275,574 $ 1,194,696 $ 1,108,308 $ 1,016,121 $ 917,831 $ 813,116 $ 701,640
Total Local Only Reimbursement Balance $ - $ 593,182 $ 5,071,705 $ 14,816,198 $ 19,116,098 $ 22,741,220 $ 32,776,007 $ 34,414,807 $ 35,890,364 $ 34,854,118 $ 33,737,359 $ 32,535,775 $ 31,244,833 $ 29,859,775 $ 28,375,599 $ 26,787,049 $ 25,088,606 $ 23,274,470 $ 21,338,548 $ 19,274,442 $ 17,075,427 $ 14,734,441
Total Annual Developer Reimbursement $ - $ 42,912 $ 322,442 $ - $ - $ - $ - $ - $ 233,508 $ 2,695,966 $ 2,723,300 $ 2,750,907 $ 2,778,790 $ 2,806,952 $ 2,835,396 $ 2,864,124 $ 2,893,139 $ 2,922,444 $ 2,952,043 $ 2,981,937 $ 3,012,131 $ 3,042,626
Beginning
CITY OF MUSKEGON BONDED ACTIVITIES Balance
City of Muskegon Bond Reimbursement Balance $ - $ - $ 10,500,000 $ 10,759,998 $ 9,972,313 $ 8,810,967 $ 7,340,848 $ 4,961,532 $ 2,435,395 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Only Costs $ 10,000,000 $ - $ 10,000,000 $ 10,500,000 $ 10,759,998 $ 9,972,313 $ 8,810,967 $ 7,340,848 $ 4,961,532 $ 2,435,395 $ -
Local Tax Reimbursement $ 12,608,621 $ - $ - $ 252,383 $ 1,262,558 $ 1,580,915 $ 1,819,684 $ 2,615,578 $ 2,642,108 $ 2,435,395
Interest (5%) $ 2,608,621 $ 500,000 $ 512,381 $ 474,872 $ 419,570 $ 349,564 $ 236,263 $ 115,971 $ -
Total Local Only Reimbursement Balance $ 10,000,000 $ - $ 10,500,000 $ 10,759,998 $ 9,972,313 $ 8,810,967 $ 7,340,848 $ 4,961,532 $ 2,435,395 $ - $ -
Total Annual City of Muskegon Reimbursement $ - $ - $ 252,383 $ 1,262,558 $ 1,580,915 $ 1,819,684 $ 2,615,578 $ 2,642,108 $ 2,435,395 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
LOCAL BROWNFIELD REVOLVING FUND
LBRF Deposits *
State Tax Capture $ 178,977
Local Tax Capture $ 12,499,122
Total LBRF Capture $ 12,678,099
* Up to five years of capture for LBRF Deposits after
eligible activities are reimbursed. May be taken from
Local TIR only.
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Table 2 - Estimate of Total Incremental Taxes Available for Reimbursement 2 of 2
1148 1204 West Western Avenue, Muskegon, Muskegon County, Michigan
Estimated Developer Capture $ 54,166,757
Estimated City of Muskegon Capture $ 12,608,621
BRA Administrative Fee $ 290,500
State Brownfield Redevelopment Fund $ 365,244
Local Brownfield Revolving Fund $ 12,678,099
2043 2044 2045 2046 2047 2048 2049 2050 2051 TOTAL
Total State Incremental Revenue $ 2,439,076 $ 2,463,684 $ 2,488,537 $ 2,513,640 $ 2,538,993 $ 2,564,599 $ 2,590,462 $ 2,616,584 $ 2,642,966 $ 62,796,559
State Brownfield Redevelopment Fund (50% of SET) $ 320,791 $ 365,244
State TIR Available for Reimbursement $ 2,439,076 $ 2,463,684 $ 2,488,537 $ 2,513,640 $ 2,538,993 $ 2,243,808 $ 2,590,462 $ 2,616,584 $ 2,642,966 $ 39,893,567
Total Local Incremental Revenue $ 3,083,426 $ 3,114,535 $ 3,145,954 $ 3,177,688 $ 3,209,738 $ 3,242,110 $ 3,274,805 $ 3,307,827 $ 3,341,179 $ 79,386,023
BRA Administrative Fee $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 290,500
Local TIR Available for Reimbursement $ 3,073,426 $ 3,104,535 $ 3,135,954 $ 3,167,688 $ 3,199,738 $ 3,232,110 $ 3,264,805 $ 3,297,827 $ 3,331,179 $ 79,095,523
Total State & Local TIR Available $ 5,512,502 $ 5,568,218 $ 5,624,491 $ 5,681,327 $ 5,738,731 $ 5,475,918 $ 5,855,267 $ 5,914,411 $ 5,974,145 $ 141,526,839
DEVELOPER
Developer Reimbursement Balance $ 12,244,066 $ 9,596,509 $ 6,783,583 $ 3,796,690 $ 626,800 $ - $ - $ - $ -
Pre-Approved Environmental Costs
State Tax Reimbursement $ 178,977
Local Tax Reimbursement $ 186,377
Interest (5%) $ 15,354
Total EGLE Reimbursement Balance $ -
Local Only Costs $ 14,734,441 $ 12,244,066 $ 9,596,509 $ 6,783,583 $ 3,796,690 $ 626,800
Local Tax Reimbursement $ 3,073,426 $ 3,104,535 $ 3,135,954 $ 3,167,688 $ 3,199,738 $ 626,800 $ 53,801,403
Interest (5%) $ 583,051 $ 456,977 $ 323,028 $ 180,795 $ 29,848 $ - $ 25,554,653
Total Local Only Reimbursement Balance $ 12,244,066 $ 9,596,509 $ 6,783,583 $ 3,796,690 $ 626,800 $ - $ - $ -
Total Annual Developer Reimbursement $ 3,073,426 $ 3,104,535 $ 3,135,954 $ 3,167,688 $ 3,199,738 $ 626,800 $ - $ - $ - $ 54,166,757
CITY OF MUSKEGON BONDED ACTIVITIES
City of Muskegon Bond Reimbursement Balance $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Only Costs
Local Tax Reimbursement $ 12,608,621
Interest (5%) $ 2,608,621
Total Local Only Reimbursement Balance $ -
Total Annual City of Muskegon Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,608,621
LOCAL BROWNFIELD REVOLVING FUND
LBRF Deposits *
State Tax Capture $ 178,977 $ 178,977
Local Tax Capture $ 2,605,310 $ 3,264,805 $ 3,297,827 $ 3,331,179 $ 12,499,122
Total LBRF Capture $ 12,678,099
* Up to five years of capture for LBRF Deposits after
eligible activities are reimbursed. May be taken from
Local TIR only.
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Attachment A
Conceptual Renderings
383
384
385
Attachment B
Environmental Data Tables and Map
386
LEGEND
Approximate Property Boundary
@
A Groundwater Sample Location
H
! Soil Gas Sample Location
H
! Soil Sample Location
Units-
Soil samples µg/Kg
Groundwater samples µg/L
Blue shading indicates a groundwater sample. Hard copy is
Yellow shading indicates a soil sample. intended to be
8.5"x11" when
plotted. Scale(s)
indicated and
graphic quality may
not be accurate for
any other size.
1148 & 1204 West Western Ave., Muskegon, Muskegon County MI 49441
Leestma Management, LLC
Baseline Environmental Assessment
SB-07(2-3')
12/30/2
Arsenic 19,000
Cadmium 13,000 SB-04 (4-5')
Chromium, Total 190,000 12/30/20
Copper 430,000 Chromium, Total 30,000
Selenium 560 Selenium 600
TW-03
H SB-07
! 12/30/20 H SB-04
!
Benzene 9.7
Cadmium 7.2
Chromium, Total 33
Copper 150
SB-06 (1-2')
Lead 180 SB-03 (3-4')
12/30/20
Mercury 0.65 12/30/20
Chromium, Total 14,000
Zinc 190 Chromium, Total 27,000
Selenium 960
Selenium 1,100
H SB-06
! TW-03 @
A H SB-03
! SB-02 (4-5')
12/30/20
Arsenic 5,900
SB-01 (4-5') Cadmium 8,100
PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\BEA\FIG05_ExceedanceMap.mxd Date: 1/18/2021 12:29:56 PM User: bahannah
H SB-05
! 12/30/20 Chromium, Total 24,000
SB-05(2-3') Tetrachloroethene 170 Selenium 1,000
12/30/20 Chromium, Total 6,700
Selenium 1,400
Cadmium
Chromium, Total
4,900
49,000
H SB-02
!
Copper 76,000
H!H SB-01
Selenium 770 !
SG-03 H
!
H
! SG-04
SG-01
TW-01 @
A
H
!
SG-02
TW-02 @
A
PROJECT NO.
SAMPLE EXCEEDANCE MAP
201515
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus
DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, FIGURE NO.
Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE,
FEET
NORTH 0 Garmin,
150(c) OpenStreetMap
community
300 contributors, and the GIS user
4
©Copyright 2021 All Rights Reserved
387
Fishbeck | 1 of 1
Table 1 - Soil Data Summary
Baseline Environmental Assessment
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, MI
December 2020
Sample Location: SB-01 SB-01 SB-02 SB-03 SB-04 SB-05 SB-06 SB-07 FB-01
Statewide Finite VSIC Finite VSIC
Depth Interval (ft): (4-5) (4-5) (4-5) (3-4) (4-5) (2-3) (1-2) (2-3) Drinking Water Soil Volatilization to Infinite Particulate Direct Soil Saturation
Default GSIP for 5 Meter for 2 Meter
Investigative/Field Duplicate/QC: Investigative Duplicate Investigative Investigative Investigative Investigative Investigative Investigative QC Protection Indoor Air Inhalation Source Soil Inhalation Contact Concentration
Background Criteria (1) Source Source
Laboratory ID: 20L0979-01 20L0979-02 20L0979-03 20L0979-04 20L0979-05 20L0979-06 20L0979-07 20L0979-08 20L0979-09 Criteria (1) Criteria (1) VSIC (1) Criteria (1) Criteria (1) SL (1)
Levels (1) Thickness (1) Thickness (1)
Collection Date: 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20
Volatile Organic Compounds CAS Number
Tetrachloroethene 127-18-4 170 150 58 U 57 U 50 U 50 U 61 U 50 U 50 U NA 100 1,200 (X) 11,000 1.70E+05 4.80E+05 1.10E+06 2.70E+09 2.00E+05 (C) 88,000
Polynuclear Aromatic Compounds CAS Number
Benzo(a)pyrene 50-32-8 330 U 330 U 350 330 UJ 330 U 330 U 330 UJ 430 -- NA NLL NLL NLV NLV NLV NLV 1.50E+06 2,000 NA
Benzo(b)fluoranthene 205-99-2 330 U 400 550 330 UJ 330 U 330 U 330 UJ 520 -- NA NLL NLL ID ID ID ID ID 20,000 NA
Metals, Total CAS Number
Arsenic (B) 7440-38-2 4,000 J 3,600 5,900 2,000 U 3,500 4,900 2,000 U 19,000 -- 5,800 4,600 4,600 NLV NLV NLV NLV 7.20E+05 7,600 NA
Barium (B) 7440-39-3 15,000 18,000 10,000 15,000 23,000 16,000 11,000 100,000 -- 75,000 1.30E+06 4.40E+05 (G) NLV NLV NLV NLV 3.30E+08 3.70E+07 NA
Cadmium (B) 7440-43-9 1,700 1,600 8,100 2,400 3,600 4,900 720 13,000 -- 1,200 6,000 3,600 (G,X) NLV NLV NLV NLV 1.70E+06 5.50E+05 NA
Chromium, Total (B, H) 7440-47-3 6,700 5,900 24,000 27,000 30,000 49,000 14,000 190,000 -- 18,000 (total) 30,000 3,300 NLV NLV NLV NLV 2.60E+05 2.50E+06 NA
Copper (B) 7440-50-8 38,000 J 20,000 34,000 34,000 53,000 76,000 12,000 430,000 -- 32,000 5.80E+06 75,000 (G) NLV NLV NLV NLV 1.30E+08 2.00E+07 NA
Lead (B) 7439-92-1 22,000 20,000 34,000 27,000 19,000 20,000 12,000 66,000 -- 21,000 7.00E+05 5.10E+06 (G,X) NLV NLV NLV NLV 1.00E+08 4.00E+05 NA
Mercury (Total) (B) 7439-97-6 50 U 50 U 50 U 57 50 U 64 50 U 50 U -- 130 1,700 50 (M); 1.2 48,000 52,000 52,000 52,000 2.00E+07 1.60E+05 NA
Selenium (B) 7782-49-2 1,400 1,400 1,000 1,100 600 770 960 560 -- 410 4,000 400 NLV NLV NLV NLV 1.30E+08 2.60E+06 NA
Silver (B) 7440-22-4 490 U 470 U 490 U 490 U 490 U 460 U 470 U 430 U -- 1,000 4,500 100 (M); 27 NLV NLV NLV NLV 6.70E+06 2.50E+06 NA
Zinc (B) 7440-66-6 15,000 14,000 23,000 47,000 40,000 62,000 33,000 74,000 -- 47,000 2.40E+06 1.70E+05 (G) NLV NLV NLV NLV ID 1.70E+08 NA
Solids, Total (%) -- 90 91 88 89 89 90 87 92 -- -- -- -- -- -- -- -- -- -- --
Results expressed in µg/Kg dry weight (except for FB-01, which is µg/Kg wet weight).
Bolded values exceed Statewide Default Background Level and an applicable criterion or screening level.
Italicized values are below Statewide Default Background Level but exceed an applicable criterion or screening level.
Underlined parameters are classified as Polynuclear Aromatic Compounds.
Data Qualifiers:
J Estimated value
U Not detected
Footnotes/Abbreviations:
(1)
Part 201 Residential Soil Generic Cleanup Criteria and Screening Levels/Part 213 Risk-based Screening Levels, December 30, 2013 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(C) Value is screening level based on the chemical-specific generic soil saturation concentration (Csat).
(G) Criterion dependent on receiving surface water (SW) hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total chromium only; evaluated against hexavalent chromium criteria.
(J) Hazardous substance may be present in several isomer forms. Isomer-specific concentrations must be added together for comparison to criteria.
(JT) Hazardous substance may be present in several isomer forms. The VIAP SL may be used for the individual isomer provided that it is the sole isomer detected; however, when multiple isomers are detected in a medium, the isomer-specific concentrations must be added together and compared to the most restrictive VIAP SL of the detected isomers.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below TDL. In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to evaluate the risk posed from the pathway.
(W) Concentrations of trihalomethanes must be added together to determine compliance with criterion.
(X) Criterion is not protective for SW used as a drinking water (DW) source.
(DD) Hazardous substance causes developmental effects. Residential VIAP SLs are protective of both prenatal exposure using a pregnant female receptor and postnatal exposure using a child receptor. Prenatal developmental effects may occur after an acute (i.e. short- term) or full-term exposure.
(EE) The acceptable air concentration (AAC) for the volatile hazardous substances is not derived using standard equations. The hazardous substance may cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The AAC for these hazardous substances is the acute or intermediate minimum risk level (MRL) developed by the Agency for Toxic Substances and Disease
Registry (ATSDR), a USEPA Integrated Risk Information System (IRIS) acute reference concentration, or an acute initial threshold screening level (ITSL) by the EGLE’s Air Quality Division.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
DATA Insufficient physical chemical parameters to calculate a VIAP SL for specified media. If detections are present in specified media, health-based soil vapor value should be used to evaluate risk.
GSIP groundwater surface water interface protection
ID Insufficient data to develop criterion.
NA not available
NLL Not likely to leach under most soil conditions.
NLV Not likely to volatilize under most conditions.
SL screening level
VIAP volatilization to indoor air pathway
VSIC volatile soil inhalation criteria
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Table 2 - Groundwater Data Summary
Baseline Environmental Assessment
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, MI
December 2020
Monitoring Location: TW-01 TW-02 TW-03 TW-03 TB-01
Residential Flammability
Field Duplicate: Duplicate Residential GSI Water
(1) (1) Groundwater (1) and Explosivity
Laboratory ID: 20L0979-10 20L0979-11 20L0979-12 20L0979-14 20L0979-15 DWC Criteria (1) Solubility (1)
VIAIC SL
Collection Date: 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20
Volatile Organic Compounds CAS Number
Benzene 71-43-2 1U 1U 9.7 9.9 1U 5.0 200 (X) 5,600 1.75E+06 68,000
Polychlorinated Biphenyls CAS Number
Total PCBs (J) 1336-36-3 0.2 U 0.2 U 0.2 UJ 0.2 UJ -- 0.50 0.20 (M); 2.60E-05 45 (S) 44.7 ID
Metals, Total CAS Number
Arsenic (B) 7440-38-2 5U 5U 7.7 7.9 -- 10 10 NLV NA ID
Barium (B) 7440-39-3 100 U 100 U 220 240 -- 2,000 670 (G) NLV NA ID
Cadmium (B) 7440-43-9 1U 1U 7.2 7.3 -- 5.0 3.0 (G,X) NLV NA ID
Chromium, Total (B, H) 7440-47-3 10 U 10 U 33 34 -- 100 11 NLV NA ID
Copper (B) 7440-50-8 5U 5U 150 150 -- 1,000 (E) 13 (G) NLV NA ID
Lead (B) 7439-92-1 3U 3U 180 180 -- 4.0 (L) 34 (G,X) NLV NA ID
Mercury (B) 7439-97-6 0.2 U 0.2 U 0.65 0.61 -- 2.0 0.0013 56 (S) 56 ID
Selenium (B) 7782-49-2 5U 5U 5U 5U -- 50 5.0 NLV NA ID
Silver (B) 7440-22-4 1U 1U 1U 1U -- 34 0.20 (M); 0.060 NLV NA ID
Zinc (B) 7440-66-6 50 U 50 U 190 190 -- 2,400 170 (G) NLV NA ID
Results expressed in µg/L.
Bolded values exceed an applicable criterion and/or screening level.
Underlined compounds classified as polynuclear aromatic compounds.
Data Qualifiers:
J Estimated value
U Not detected above the given limit
Footnotes/Abbreviations:
(1)
Part 201 Groundwater Generic Cleanup Criteria/Part 213 Tier 1 Risk-based Screening Levels, January 10, 2018 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(E) Aesthetic drinking water (DW) value. Notice of aesthetic impact may be employed as an institutional control if concentration exceeds the aesthetic DWC but not the health-based DW value.
(G) Criterion dependent on receiving surface water (SW) hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total Chromium only; compare to hexavalent Chromium criteria.
(J) Substance present in several isomer forms; isomer concentrations must be added together for comparison to criteria.
(JT) Substance present in several isomer forms. The VIAP SL may be used for the individual isomer provided that it is sole isomer detected; however, when multiple isomers are detected in a medium,
(L) Concentrations up to the State action level of 15 µg/L may still allow for DW use if soil concentrations are below 400 mg/Kg.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below target detection limits (TDL). In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to
(S) Criterion defaults to the hazardous substance-specific water solubility limit.
(W) Concentrations of trihalomethanes must be added together to determine compliance with the DWC.
(X) Criterion is not protective for SW used as a DW source.
(AA) Use 10,000 µg/L where GW enters a structure through the use of a water well, sump or other device. Use 28,000 µg/L for all other uses.
(CC) Insufficient chemical-physical input parameters have been identified to allow the development of a VIAP SL using standard equations. The VIAP SL for GW is developed based solely on the approach that the department uses for shallow GW. If GW detections
are present, soil vapor may be the most appropriate media to evaluate risk.
(DD) Hazardous substance causes developmental effects. Residential VIAP SLs are protective of both prenatal exposure using a pregnant female receptor and postnatal exposure using a child receptor. Prenatal developmental effects may occur after an acute (i.e. short- term) or full-term exposure.
(EE*) The acceptable air concentration (AAC) for the volatile hazardous substance is not derived using standard equations. The hazardous substance may cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The AAC for this
hazardous substance is the acute or intermediate minimum risk level (MRL) developed by the Agency for Toxic Substances and Disease Registry (ATSDR), a USEPA Integrated Risk Information System (IRIS) acute reference concentration, or an acute initial
(FF*) The AAC for the volatile hazardous substances are based on toxicity values that have been identified to have the potential to cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The short-term exposure for shallow
groundwater VIAP SLs are based on modification of the standard equations by the department to develop applicable shallow groundwater VIAP SLs.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
DWC drinking water criterion
GSI groundwater surface water interface
ID Insufficient data to develop criterion.
NA not available
NLV Not likely to volatilize under most conditions.
SL screening level
TX The Remediation and Redevelopment Division Toxicology Unit has not identified an inhalation toxicity value for the hazardous substance at the date of publication of these values.
VIAIC volatilization to indoor air inhalation criteria
VIAP volatilization to indoor air pathway
\\ftch\allprojects\2020\201515\WORK\Rept\BEA\TBL02_DataSummary-GW-Res_2021_0114.xlsx
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Attachment B
Conceptual Renderings
390
391
392
Attachment C
Environmental Data Tables and Map
393
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Fishbeck | 1 of 1
Table 1 - Soil Data Summary
Baseline Environmental Assessment
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, MI
December 2020
Sample Location: SB-01 SB-01 SB-02 SB-03 SB-04 SB-05 SB-06 SB-07 FB-01
Statewide Finite VSIC Finite VSIC
Depth Interval (ft): (4-5) (4-5) (4-5) (3-4) (4-5) (2-3) (1-2) (2-3) Drinking Water Soil Volatilization to Infinite Particulate Direct Soil Saturation
Default GSIP for 5 Meter for 2 Meter
Investigative/Field Duplicate/QC: Investigative Duplicate Investigative Investigative Investigative Investigative Investigative Investigative QC Protection Indoor Air Inhalation Source Soil Inhalation Contact Concentration
Background Criteria (1) Source Source
Laboratory ID: 20L0979-01 20L0979-02 20L0979-03 20L0979-04 20L0979-05 20L0979-06 20L0979-07 20L0979-08 20L0979-09 Criteria (1) Criteria (1) VSIC (1) Criteria (1) Criteria (1) SL (1)
Levels (1) Thickness (1) Thickness (1)
Collection Date: 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20
Volatile Organic Compounds CAS Number
Tetrachloroethene 127-18-4 170 150 58 U 57 U 50 U 50 U 61 U 50 U 50 U NA 100 1,200 (X) 11,000 1.70E+05 4.80E+05 1.10E+06 2.70E+09 2.00E+05 (C) 88,000
Polynuclear Aromatic Compounds CAS Number
Benzo(a)pyrene 50-32-8 330 U 330 U 350 330 UJ 330 U 330 U 330 UJ 430 -- NA NLL NLL NLV NLV NLV NLV 1.50E+06 2,000 NA
Benzo(b)fluoranthene 205-99-2 330 U 400 550 330 UJ 330 U 330 U 330 UJ 520 -- NA NLL NLL ID ID ID ID ID 20,000 NA
Metals, Total CAS Number
Arsenic (B) 7440-38-2 4,000 J 3,600 5,900 2,000 U 3,500 4,900 2,000 U 19,000 -- 5,800 4,600 4,600 NLV NLV NLV NLV 7.20E+05 7,600 NA
Barium (B) 7440-39-3 15,000 18,000 10,000 15,000 23,000 16,000 11,000 100,000 -- 75,000 1.30E+06 4.40E+05 (G) NLV NLV NLV NLV 3.30E+08 3.70E+07 NA
Cadmium (B) 7440-43-9 1,700 1,600 8,100 2,400 3,600 4,900 720 13,000 -- 1,200 6,000 3,600 (G,X) NLV NLV NLV NLV 1.70E+06 5.50E+05 NA
Chromium, Total (B, H) 7440-47-3 6,700 5,900 24,000 27,000 30,000 49,000 14,000 190,000 -- 18,000 (total) 30,000 3,300 NLV NLV NLV NLV 2.60E+05 2.50E+06 NA
Copper (B) 7440-50-8 38,000 J 20,000 34,000 34,000 53,000 76,000 12,000 430,000 -- 32,000 5.80E+06 75,000 (G) NLV NLV NLV NLV 1.30E+08 2.00E+07 NA
Lead (B) 7439-92-1 22,000 20,000 34,000 27,000 19,000 20,000 12,000 66,000 -- 21,000 7.00E+05 5.10E+06 (G,X) NLV NLV NLV NLV 1.00E+08 4.00E+05 NA
Mercury (Total) (B) 7439-97-6 50 U 50 U 50 U 57 50 U 64 50 U 50 U -- 130 1,700 50 (M); 1.2 48,000 52,000 52,000 52,000 2.00E+07 1.60E+05 NA
Selenium (B) 7782-49-2 1,400 1,400 1,000 1,100 600 770 960 560 -- 410 4,000 400 NLV NLV NLV NLV 1.30E+08 2.60E+06 NA
Silver (B) 7440-22-4 490 U 470 U 490 U 490 U 490 U 460 U 470 U 430 U -- 1,000 4,500 100 (M); 27 NLV NLV NLV NLV 6.70E+06 2.50E+06 NA
Zinc (B) 7440-66-6 15,000 14,000 23,000 47,000 40,000 62,000 33,000 74,000 -- 47,000 2.40E+06 1.70E+05 (G) NLV NLV NLV NLV ID 1.70E+08 NA
Solids, Total (%) -- 90 91 88 89 89 90 87 92 -- -- -- -- -- -- -- -- -- -- --
Results expressed in µg/Kg dry weight (except for FB-01, which is µg/Kg wet weight).
Bolded values exceed Statewide Default Background Level and an applicable criterion or screening level.
Italicized values are below Statewide Default Background Level but exceed an applicable criterion or screening level.
Underlined parameters are classified as Polynuclear Aromatic Compounds.
Data Qualifiers:
J Estimated value
U Not detected
Footnotes/Abbreviations:
(1)
Part 201 Residential Soil Generic Cleanup Criteria and Screening Levels/Part 213 Risk-based Screening Levels, December 30, 2013 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(C) Value is screening level based on the chemical-specific generic soil saturation concentration (Csat).
(G) Criterion dependent on receiving surface water (SW) hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total chromium only; evaluated against hexavalent chromium criteria.
(J) Hazardous substance may be present in several isomer forms. Isomer-specific concentrations must be added together for comparison to criteria.
(JT) Hazardous substance may be present in several isomer forms. The VIAP SL may be used for the individual isomer provided that it is the sole isomer detected; however, when multiple isomers are detected in a medium, the isomer-specific concentrations must be added together and compared to the most restrictive VIAP SL of the detected isomers.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below TDL. In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to evaluate the risk posed from the pathway.
(W) Concentrations of trihalomethanes must be added together to determine compliance with criterion.
(X) Criterion is not protective for SW used as a drinking water (DW) source.
(DD) Hazardous substance causes developmental effects. Residential VIAP SLs are protective of both prenatal exposure using a pregnant female receptor and postnatal exposure using a child receptor. Prenatal developmental effects may occur after an acute (i.e. short- term) or full-term exposure.
(EE) The acceptable air concentration (AAC) for the volatile hazardous substances is not derived using standard equations. The hazardous substance may cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The AAC for these hazardous substances is the acute or intermediate minimum risk level (MRL) developed by the Agency for Toxic Substances and Disease
Registry (ATSDR), a USEPA Integrated Risk Information System (IRIS) acute reference concentration, or an acute initial threshold screening level (ITSL) by the EGLE’s Air Quality Division.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
DATA Insufficient physical chemical parameters to calculate a VIAP SL for specified media. If detections are present in specified media, health-based soil vapor value should be used to evaluate risk.
GSIP groundwater surface water interface protection
ID Insufficient data to develop criterion.
NA not available
NLL Not likely to leach under most soil conditions.
NLV Not likely to volatilize under most conditions.
SL screening level
VIAP volatilization to indoor air pathway
VSIC volatile soil inhalation criteria
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Table 2 - Groundwater Data Summary
Baseline Environmental Assessment
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, MI
December 2020
Monitoring Location: TW-01 TW-02 TW-03 TW-03 TB-01
Residential Flammability
Field Duplicate: Duplicate Residential GSI Water
(1) (1) Groundwater (1) and Explosivity
Laboratory ID: 20L0979-10 20L0979-11 20L0979-12 20L0979-14 20L0979-15 DWC Criteria (1) Solubility (1)
VIAIC SL
Collection Date: 12/30/20 12/30/20 12/30/20 12/30/20 12/30/20
Volatile Organic Compounds CAS Number
Benzene 71-43-2 1U 1U 9.7 9.9 1U 5.0 200 (X) 5,600 1.75E+06 68,000
Polychlorinated Biphenyls CAS Number
Total PCBs (J) 1336-36-3 0.2 U 0.2 U 0.2 UJ 0.2 UJ -- 0.50 0.20 (M); 2.60E-05 45 (S) 44.7 ID
Metals, Total CAS Number
Arsenic (B) 7440-38-2 5U 5U 7.7 7.9 -- 10 10 NLV NA ID
Barium (B) 7440-39-3 100 U 100 U 220 240 -- 2,000 670 (G) NLV NA ID
Cadmium (B) 7440-43-9 1U 1U 7.2 7.3 -- 5.0 3.0 (G,X) NLV NA ID
Chromium, Total (B, H) 7440-47-3 10 U 10 U 33 34 -- 100 11 NLV NA ID
Copper (B) 7440-50-8 5U 5U 150 150 -- 1,000 (E) 13 (G) NLV NA ID
Lead (B) 7439-92-1 3U 3U 180 180 -- 4.0 (L) 34 (G,X) NLV NA ID
Mercury (B) 7439-97-6 0.2 U 0.2 U 0.65 0.61 -- 2.0 0.0013 56 (S) 56 ID
Selenium (B) 7782-49-2 5U 5U 5U 5U -- 50 5.0 NLV NA ID
Silver (B) 7440-22-4 1U 1U 1U 1U -- 34 0.20 (M); 0.060 NLV NA ID
Zinc (B) 7440-66-6 50 U 50 U 190 190 -- 2,400 170 (G) NLV NA ID
Results expressed in µg/L.
Bolded values exceed an applicable criterion and/or screening level.
Underlined compounds classified as polynuclear aromatic compounds.
Data Qualifiers:
J Estimated value
U Not detected above the given limit
Footnotes/Abbreviations:
(1)
Part 201 Groundwater Generic Cleanup Criteria/Part 213 Tier 1 Risk-based Screening Levels, January 10, 2018 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(E) Aesthetic drinking water (DW) value. Notice of aesthetic impact may be employed as an institutional control if concentration exceeds the aesthetic DWC but not the health-based DW value.
(G) Criterion dependent on receiving surface water (SW) hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total Chromium only; compare to hexavalent Chromium criteria.
(J) Substance present in several isomer forms; isomer concentrations must be added together for comparison to criteria.
(JT) Substance present in several isomer forms. The VIAP SL may be used for the individual isomer provided that it is sole isomer detected; however, when multiple isomers are detected in a medium,
(L) Concentrations up to the State action level of 15 µg/L may still allow for DW use if soil concentrations are below 400 mg/Kg.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below target detection limits (TDL). In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to
(S) Criterion defaults to the hazardous substance-specific water solubility limit.
(W) Concentrations of trihalomethanes must be added together to determine compliance with the DWC.
(X) Criterion is not protective for SW used as a DW source.
(AA) Use 10,000 µg/L where GW enters a structure through the use of a water well, sump or other device. Use 28,000 µg/L for all other uses.
(CC) Insufficient chemical-physical input parameters have been identified to allow the development of a VIAP SL using standard equations. The VIAP SL for GW is developed based solely on the approach that the department uses for shallow GW. If GW detections
are present, soil vapor may be the most appropriate media to evaluate risk.
(DD) Hazardous substance causes developmental effects. Residential VIAP SLs are protective of both prenatal exposure using a pregnant female receptor and postnatal exposure using a child receptor. Prenatal developmental effects may occur after an acute (i.e. short- term) or full-term exposure.
(EE*) The acceptable air concentration (AAC) for the volatile hazardous substance is not derived using standard equations. The hazardous substance may cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The AAC for this
hazardous substance is the acute or intermediate minimum risk level (MRL) developed by the Agency for Toxic Substances and Disease Registry (ATSDR), a USEPA Integrated Risk Information System (IRIS) acute reference concentration, or an acute initial
(FF*) The AAC for the volatile hazardous substances are based on toxicity values that have been identified to have the potential to cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The short-term exposure for shallow
groundwater VIAP SLs are based on modification of the standard equations by the department to develop applicable shallow groundwater VIAP SLs.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
DWC drinking water criterion
GSI groundwater surface water interface
ID Insufficient data to develop criterion.
NA not available
NLV Not likely to volatilize under most conditions.
SL screening level
TX The Remediation and Redevelopment Division Toxicology Unit has not identified an inhalation toxicity value for the hazardous substance at the date of publication of these values.
VIAIC volatilization to indoor air inhalation criteria
VIAP volatilization to indoor air pathway
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396 1/19/2021
Table 1 - Soil Data Summary
Direct Contact Evaluation
1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
August 2021
Sample Location: Soil Residential Nonresidential AP-SS-1 AP-SS-2 AP-SS-3 AP-SS-4 AP-SS-5 AP-SS-6 AP-SS-7
GSIP
Laboratory ID: SDBL (1) Csat DWP SVIAI Inf. Source Finite VSIC - Finite VSIC - PSI DC Soil DWP Inf. Source Finite VSIC - Finite VSIC - PSI DC Soil 21H0909-01 21H0909-02 21H0909-03 21H0909-04 21H0909-05 21H0909-06 21H0909-07
Criteria (1) SVIAI Criteria (1)
Collection Date: SL (1) Criteria (1) Criteria (1) VSIC (1) 5 MST (1)
2 MST (1) Criteria (1) Criteria (1) VIAP SL (2) Criteria (1) VSIC (1) 5 MST (1) 2 MST (1) Criteria (1) Criteria (1) VIAP SL (2) 08/20/21 08/20/21 08/20/21 08/20/21 08/20/21 08/20/21 08/20/21
Polynuclear Aromatic Compounds CAS Number
2-Methylnaphthalene 91-57-6 NA 4,200 NA 57,000 2.70E+06 1.50E+06 1.50E+06 1.50E+06 6.70E+08 8.10E+06 1,700 1.70E+05 4.90E+06 1.80E+06 1.80E+06 1.80E+06 2.90E+08 2.60E+07 30,000 330 UJ 330 UJ 330 U 330 U 330 U 330 U 440 UJ
Acenaphthene 83-32-9 NA 8,700 NA 3.00E+05 1.90E+08 8.10E+07 8.10E+07 8.10E+07 1.40E+10 4.10E+07 2.00E+05 8.80E+05 3.50E+08 9.70E+07 9.70E+07 9.70E+07 6.20E+09 1.30E+08 3.60E+06 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Acenaphthylene 208-96-8 NA ID NA 5,900 1.60E+06 2.20E+06 2.20E+06 2.20E+06 2.30E+09 1.60E+06 DATA 17,000 3.00E+06 2.70E+06 2.70E+06 2.70E+06 1.00E+09 5.20E+06 DATA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Anthracene 120-12-7 NA ID NA 41,000 1.00E+09 1.40E+09 1.40E+09 1.40E+09 6.70E+10 2.30E+08 1.30E+07 41,000 1.00E+09 1.60E+09 1.60E+09 1.60E+09 2.90E+10 7.30E+08 2.20E+08 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Benzo(a)anthracene 56-55-3 NA NLL NA NLL NLV NLV NLV NLV ID 20,000 1.60E+05 (MM) NLL NLV NLV NLV NLV ID 80,000 1.10E+07 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Benzo(a)pyrene 50-32-8 NA NLL NA NLL NLV NLV NLV NLV 1.50E+06 2,000 NA NLL NLV NLV NLV NLV 1.90E+06 8,000 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Benzo(b)fluoranthene 205-99-2 NA NLL NA NLL ID ID ID ID ID 20,000 NA NLL ID ID ID ID ID 80,000 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Benzo(g,h,i)perylene 191-24-2 NA NLL NA NLL NLV NLV NLV NLV 8.00E+08 2.50E+06 NA NLL NLV NLV NLV NLV 3.50E+08 7.00E+06 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Benzo(k)fluoranthene 207-08-9 NA NLL NA NLL NLV NLV NLV NLV ID 2.00E+05 NA NLL NLV NLV NLV NLV ID 8.00E+05 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Chrysene 218-01-9 NA NLL NA NLL ID ID ID ID ID 2.00E+06 NA NLL ID ID ID ID ID 8.00E+06 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Dibenzo(a,h)anthracene 53-70-3 NA NLL NA NLL NLV NLV NLV NLV ID 2,000 NA NLL NLV NLV NLV NLV ID 8,000 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Fluoranthene 206-44-0 NA 5,500 NA 7.30E+05 1.00E+09 7.40E+08 7.40E+08 7.40E+08 9.30E+09 4.60E+07 NA 7.30E+05 1.00E+09 8.90E+08 8.80E+08 8.80E+08 4.10E+09 1.30E+08 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Fluorene 86-73-7 NA 5,300 NA 3.90E+05 5.80E+08 1.30E+08 1.30E+08 1.30E+08 9.30E+09 2.70E+07 4.70E+05 8.90E+05 1.00E+09 1.50E+08 1.50E+08 1.50E+08 4.10E+09 8.70E+07 8.30E+06 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Indeno(1,2,3-cd)pyrene 193-39-5 NA NLL NA NLL NLV NLV NLV NLV ID 20,000 NA NLL NLV NLV NLV NLV ID 80,000 NA 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Naphthalene 91-20-3 NA 730 NA 35,000 2.50E+05 3.00E+05 3.00E+05 3.00E+05 2.00E+08 1.60E+07 67 (M*) 1.00E+05 4.70E+05 3.50E+05 3.50E+05 3.50E+05 8.80E+07 5.20E+07 1,900 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Phenanthrene 85-01-8 NA 2,100 NA 56,000 2.80E+06 1.60E+05 1.60E+05 1.60E+05 6.70E+06 1.60E+06 1,700 1.60E+05 5.10E+06 1.90E+05 1.90E+05 1.90E+05 2.90E+06 5.20E+06 29,000 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Pyrene 129-00-0 NA ID NA 4.80E+05 1.00E+09 6.50E+08 6.50E+08 6.50E+08 6.70E+09 2.90E+07 2.50E+07 4.80E+05 1.00E+09 7.80E+08 7.80E+08 7.80E+08 2.90E+09 8.40E+07 4.40E+08 330 UJ 330 UJ 330 U 330 U 330 U 330 U 330 UJ
Metals, Total CAS Number
Arsenic (B) 7440-38-2 5,800 4,600 NA 4,600 NLV NLV NLV NLV 7.20E+05 7,600 NA 4,600 NLV NLV NLV NLV 9.10E+05 37,000 NA 5,500 J 2,000 U 2,000 U 2,000 U 12,000 5,100 2,000 U
Barium (B) 7440-39-3 75,000 4.40E+05 (G) NA 1.30E+06 NLV NLV NLV NLV 3.30E+08 3.70E+07 NA 1.30E+06 NLV NLV NLV NLV 1.50E+08 1.30E+08 NA 14,000 15,000 11,000 15,000 16,000 22,000 8,200
Cadmium (B) 7440-43-9 1,200 3,600 (G,X) NA 6,000 NLV NLV NLV NLV 1.70E+06 5.50E+05 NA 6,000 NLV NLV NLV NLV 2.20E+06 2.10E+06 NA 200 U 200 U 470 250 360 1,700 200 U
Chromium, Total (B, H) 7440-47-3 18,000 (total) 3,300 NA 30,000 NLV NLV NLV NLV 2.60E+05 2.50E+06 NA 30,000 NLV NLV NLV NLV 2.40E+05 9.20E+06 NA 27,000 6,800 39,000 19,000 570,000 62,000 13,000
Copper (B) 7440-50-8 32,000 75,000 (G) NA 5.80E+06 NLV NLV NLV NLV 1.30E+08 2.00E+07 NA 5.80E+06 NLV NLV NLV NLV 5.90E+07 7.30E+07 NA 56,000 J 10,000 31,000 15,000 400,000 98,000 15,000
Lead (B) 7439-92-1 21,000 5.10E+06 (G,X) NA 7.00E+05 NLV NLV NLV NLV 1.00E+08 4.00E+05 NA 7.00E+05 NLV NLV NLV NLV 4.40E+07 9.00E+05 NA 10,000 5,700 20,000 14,000 39,000 32,000 12,000
Mercury (Total) (B) 7439-97-6 130 50 (M); 1.2 NA 1,700 48,000 52,000 52,000 52,000 2.00E+07 1.60E+05 22 (M*) 1,700 89,000 62,000 62,000 62,000 8.80E+06 5.80E+05 390 (M*) 50 U 50 U 50 U 50 U 50 U 50 U 50 U
Selenium (B) 7782-49-2 410 400 NA 4,000 NLV NLV NLV NLV 1.30E+08 2.60E+06 NA 4,000 NLV NLV NLV NLV 5.90E+07 9.60E+06 NA 640 630 2,600 670 10,000 3,600 730
Silver (B) 7440-22-4 1,000 100 (M); 27 NA 4,500 NLV NLV NLV NLV 6.70E+06 2.50E+06 NA 13,000 NLV NLV NLV NLV 2.90E+06 9.00E+06 NA 460 U 460 U 480 U 520 U 390 U 470 U 430 U
Zinc (B) 7440-66-6 47,000 1.70E+05 (G) NA 2.40E+06 NLV NLV NLV NLV ID 1.70E+08 NA 5.00E+06 NLV NLV NLV NLV ID 6.30E+08 NA 20,000 14,000 99,000 50,000 94,000 140,000 26,000
Solids, Total (%) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 93 91 95 95 97 91 95
Results expressed in µg/Kg dry weight.
Bolded values exceed an applicable criterion.
Italicized values are below Statewide Default Background Level but exceed an applicable criterion or screening level.
Data Qualifiers:
J Estimated value
U Not detected
Footnotes/Abbreviations:
(1)
Part 201 Soil Generic Cleanup Criteria and Screening Levels/Part 213 Risk-based Screening Levels, December 30, 2013 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(G) Criterion dependent on receiving surface water hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total chromium only; evaluated against hexavalent Chromium criteria.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below TDL. In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to evaluate the risk posed from the pathway.
(X) Criterion is not protective for surface water used as a drinking water source.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
Csat saturation concentration
DC direct contact
DWP drinking water protection
GSIP groundwater surface water interface protection
ID Insufficient data to develop criterion.
MST meter source thickness
NA not available
NLL Not likely to leach under most soil conditions.
NLV Not likely to volatilize under most conditions.
PSI particulate soil inhalation
SDBL statewide default background levels
SL screening level
SVIAI soil volatilization to indoor air inhalation
VIAP volatilization to indoor air pathway
VSIC volatile soil inhalation criteria
397
Table 1 - Soil Data Summary
Direct Contact Evaluation
1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
August 2021
Sample Location: Soil Residential Nonresidential AP-SS-8 AP-SS-9 AP-SS-10 AP-SS-11 AP-SS-12 AP-SS-13
GSIP
Laboratory ID: SDBL (1) Csat DWP SVIAI Inf. Source Finite VSIC - Finite VSIC - PSI DC Soil DWP Inf. Source Finite VSIC - Finite VSIC - PSI DC Soil 21H0909-08 21H0909-09 21H0909-10 21H0909-11 21H0909-12 21H0909-13
Criteria (1) SVIAI Criteria (1)
Collection Date: SL (1) Criteria (1) Criteria (1) VSIC (1) 5 MST (1)
2 MST (1) Criteria (1) Criteria (1) VIAP SL (2) Criteria (1) VSIC (1) 5 MST (1) 2 MST (1) Criteria (1) Criteria (1) VIAP SL (2) 08/20/21 08/20/21 08/20/21 08/20/21 08/20/21 08/20/21
Polynuclear Aromatic Compounds CAS Number
2-Methylnaphthalene 91-57-6 NA 4,200 NA 57,000 2.70E+06 1.50E+06 1.50E+06 1.50E+06 6.70E+08 8.10E+06 1,700 1.70E+05 4.90E+06 1.80E+06 1.80E+06 1.80E+06 2.90E+08 2.60E+07 30,000 430 U 330 U 430 U 430 UJ 330 UJ 330 U
Acenaphthene 83-32-9 NA 8,700 NA 3.00E+05 1.90E+08 8.10E+07 8.10E+07 8.10E+07 1.40E+10 4.10E+07 2.00E+05 8.80E+05 3.50E+08 9.70E+07 9.70E+07 9.70E+07 6.20E+09 1.30E+08 3.60E+06 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Acenaphthylene 208-96-8 NA ID NA 5,900 1.60E+06 2.20E+06 2.20E+06 2.20E+06 2.30E+09 1.60E+06 DATA 17,000 3.00E+06 2.70E+06 2.70E+06 2.70E+06 1.00E+09 5.20E+06 DATA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Anthracene 120-12-7 NA ID NA 41,000 1.00E+09 1.40E+09 1.40E+09 1.40E+09 6.70E+10 2.30E+08 1.30E+07 41,000 1.00E+09 1.60E+09 1.60E+09 1.60E+09 2.90E+10 7.30E+08 2.20E+08 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Benzo(a)anthracene 56-55-3 NA NLL NA NLL NLV NLV NLV NLV ID 20,000 1.60E+05 (MM) NLL NLV NLV NLV NLV ID 80,000 1.10E+07 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Benzo(a)pyrene 50-32-8 NA NLL NA NLL NLV NLV NLV NLV 1.50E+06 2,000 NA NLL NLV NLV NLV NLV 1.90E+06 8,000 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Benzo(b)fluoranthene 205-99-2 NA NLL NA NLL ID ID ID ID ID 20,000 NA NLL ID ID ID ID ID 80,000 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Benzo(g,h,i)perylene 191-24-2 NA NLL NA NLL NLV NLV NLV NLV 8.00E+08 2.50E+06 NA NLL NLV NLV NLV NLV 3.50E+08 7.00E+06 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Benzo(k)fluoranthene 207-08-9 NA NLL NA NLL NLV NLV NLV NLV ID 2.00E+05 NA NLL NLV NLV NLV NLV ID 8.00E+05 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Chrysene 218-01-9 NA NLL NA NLL ID ID ID ID ID 2.00E+06 NA NLL ID ID ID ID ID 8.00E+06 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Dibenzo(a,h)anthracene 53-70-3 NA NLL NA NLL NLV NLV NLV NLV ID 2,000 NA NLL NLV NLV NLV NLV ID 8,000 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Fluoranthene 206-44-0 NA 5,500 NA 7.30E+05 1.00E+09 7.40E+08 7.40E+08 7.40E+08 9.30E+09 4.60E+07 NA 7.30E+05 1.00E+09 8.90E+08 8.80E+08 8.80E+08 4.10E+09 1.30E+08 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Fluorene 86-73-7 NA 5,300 NA 3.90E+05 5.80E+08 1.30E+08 1.30E+08 1.30E+08 9.30E+09 2.70E+07 4.70E+05 8.90E+05 1.00E+09 1.50E+08 1.50E+08 1.50E+08 4.10E+09 8.70E+07 8.30E+06 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Indeno(1,2,3-cd)pyrene 193-39-5 NA NLL NA NLL NLV NLV NLV NLV ID 20,000 NA NLL NLV NLV NLV NLV ID 80,000 NA 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Naphthalene 91-20-3 NA 730 NA 35,000 2.50E+05 3.00E+05 3.00E+05 3.00E+05 2.00E+08 1.60E+07 67 (M*) 1.00E+05 4.70E+05 3.50E+05 3.50E+05 3.50E+05 8.80E+07 5.20E+07 1,900 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Phenanthrene 85-01-8 NA 2,100 NA 56,000 2.80E+06 1.60E+05 1.60E+05 1.60E+05 6.70E+06 1.60E+06 1,700 1.60E+05 5.10E+06 1.90E+05 1.90E+05 1.90E+05 2.90E+06 5.20E+06 29,000 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Pyrene 129-00-0 NA ID NA 4.80E+05 1.00E+09 6.50E+08 6.50E+08 6.50E+08 6.70E+09 2.90E+07 2.50E+07 4.80E+05 1.00E+09 7.80E+08 7.80E+08 7.80E+08 2.90E+09 8.40E+07 4.40E+08 330 U 330 U 330 U 330 UJ 330 UJ 330 U
Metals, Total CAS Number
Arsenic (B) 7440-38-2 5,800 4,600 NA 4,600 NLV NLV NLV NLV 7.20E+05 7,600 NA 4,600 NLV NLV NLV NLV 9.10E+05 37,000 NA 2,900 2,000 U 2,000 U 2,200 2,400 13,000
Barium (B) 7440-39-3 75,000 4.40E+05 (G) NA 1.30E+06 NLV NLV NLV NLV 3.30E+08 3.70E+07 NA 1.30E+06 NLV NLV NLV NLV 1.50E+08 1.30E+08 NA 17,000 4,300 7,500 9,400 10,000 16,000
Cadmium (B) 7440-43-9 1,200 3,600 (G,X) NA 6,000 NLV NLV NLV NLV 1.70E+06 5.50E+05 NA 6,000 NLV NLV NLV NLV 2.20E+06 2.10E+06 NA 400 200 U 200 U 570 240 5,200
Chromium, Total (B, H) 7440-47-3 18,000 (total) 3,300 NA 30,000 NLV NLV NLV NLV 2.60E+05 2.50E+06 NA 30,000 NLV NLV NLV NLV 2.40E+05 9.20E+06 NA 62,000 11,000 28,000 76,000 100,000 1,600,000
Copper (B) 7440-50-8 32,000 75,000 (G) NA 5.80E+06 NLV NLV NLV NLV 1.30E+08 2.00E+07 NA 5.80E+06 NLV NLV NLV NLV 5.90E+07 7.30E+07 NA 48,000 12,000 68,000 38,000 59,000 380,000
Lead (B) 7439-92-1 21,000 5.10E+06 (G,X) NA 7.00E+05 NLV NLV NLV NLV 1.00E+08 4.00E+05 NA 7.00E+05 NLV NLV NLV NLV 4.40E+07 9.00E+05 NA 25,000 4,200 8,300 16,000 18,000 240,000
Mercury (Total) (B) 7439-97-6 130 50 (M); 1.2 NA 1,700 48,000 52,000 52,000 52,000 2.00E+07 1.60E+05 22 (M*) 1,700 89,000 62,000 62,000 62,000 8.80E+06 5.80E+05 390 (M*) 50 U 50 U 50 U 50 U 50 U 140
Selenium (B) 7782-49-2 410 400 NA 4,000 NLV NLV NLV NLV 1.30E+08 2.60E+06 NA 4,000 NLV NLV NLV NLV 5.90E+07 9.60E+06 NA 3,700 4,400 1,300 2,700 560 U 1,200
Silver (B) 7440-22-4 1,000 100 (M); 27 NA 4,500 NLV NLV NLV NLV 6.70E+06 2.50E+06 NA 13,000 NLV NLV NLV NLV 2.90E+06 9.00E+06 NA 520 U 500 U 460 U 520 U 470 U 2,900
Zinc (B) 7440-66-6 47,000 1.70E+05 (G) NA 2.40E+06 NLV NLV NLV NLV ID 1.70E+08 NA 5.00E+06 NLV NLV NLV NLV ID 6.30E+08 NA 74,000 15,000 24,000 66,000 67,000 1,900,000
Solids, Total (%) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 97 94 97 96 86 88
Results expressed in µg/Kg dry weight.
Bolded values exceed an applicable criterion.
Italicized values are below Statewide Default Background Level but exceed an applicable criterion or screening level.
Data Qualifiers:
J Estimated value
U Not detected
Footnotes/Abbreviations:
(1)
Part 201 Soil Generic Cleanup Criteria and Screening Levels/Part 213 Risk-based Screening Levels, December 30, 2013 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(G) Criterion dependent on receiving surface water hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total chromium only; evaluated against hexavalent Chromium criteria.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below TDL. In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to evaluate the risk posed from the pathway.
(X) Criterion is not protective for surface water used as a drinking water source.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
Csat saturation concentration
DC direct contact
DWP drinking water protection
GSIP groundwater surface water interface protection
ID Insufficient data to develop criterion.
MST meter source thickness
NA not available
NLL Not likely to leach under most soil conditions.
NLV Not likely to volatilize under most conditions.
PSI particulate soil inhalation
SDBL statewide default background levels
SL screening level
SVIAI soil volatilization to indoor air inhalation
VIAP volatilization to indoor air pathway
VSIC volatile soil inhalation criteria
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Table 1 - Soil Data Summary
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
October 2022
Sample Location: APNSB-01 APNSB-02 APNSB-03 APNSB-04 APNSB-05 Field Blank Soil
Statewide Finite VSIC Finite VSIC Particulate
Depth Interval (ft): (2-4) (6-8) (1-3) (4.5-6.5) (4-6) Drinking Water Volatilization to Infinite Direct Soil Saturation
Default GSIP for 5 Meter for 2 Meter Soil Soil
Investigative/Field Duplicate/QC: Investigative Investigative Investigative Investigative Investigative QC Protection (1) Indoor Air Source Contact Concentration (2)
Background Criteria Source Source Inhalation VIAP SL
Laboratory ID: 22102086-07 22102086-08 22102086-09 22102086-10 22102086-11 22102086-12 (1) Criteria (1) Inhalation VSIC (1) (1) (1) (1) Criteria (1) SL (1)
Levels (1) Thickness Thickness Criteria
Collection Date: 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 Criteria
Volatile Organic Compounds CAS Number
1,1,1,2-Tetrachloroethane 630-20-6 20 U 21 U 23 U 22 U 20 U 30 U NA 1,500 ID 6,200 36,000 54,000 1.00E+05 4.20E+08 4.80E+05 (C) 4.40E+05 3.2 (M*)
1,1,1-Trichloroethane 71-55-6 20 U 21 U 23 U 22 U 20 U 30 U NA 4,000 1,800 2.50E+05 3.80E+06 1.20E+07 2.80E+07 6.70E+10 5.00E+08 (C) 4.60E+05 450 (EE)
1,1,2,2-Tetrachloroethane 79-34-5 20 U 21 U 23 U 22 U 20 U 30 U NA 170 1,600 (X) 4,300 10,000 10,000 14,000 5.40E+07 53,000 8.70E+05 2.7 (M*)
1,1,2-Trichloro-1,2,2-trifluoroethane 76-13-1 20 U 21 U 23 U 22 U 20 U 30 U NA 9.00E+06 (C) 1,700 5.10E+06 (C) 1.80E+08 8.80E+08 2.10E+09 5.10E+12 1.00E+09 (C,D) 5.50E+05 860
1,1,2-Trichloroethane 79-00-5 20 U 21 U 23 U 22 U 20 U 30 U NA 100 6,600 (X) 4,600 17,000 21,000 44,000 1.90E+08 1.80E+05 9.20E+05 0.37 (M*)
1,1-Dichloroethane 75-34-3 20 U 21 U 23 U 22 U 20 U 30 U NA 18,000 15,000 2.30E+05 2.10E+06 5.90E+06 1.40E+07 3.30E+10 2.70E+07 (C) 8.90E+05 2.6 (M*)
1,1-Dichloroethene 75-35-4 20 U 21 U 23 U 22 U 20 U 30 U NA 140 2,600 62 1,100 5,300 13,000 6.20E+07 2.00E+05 5.70E+05 12 (M*)
1,2,3-Trichloropropane 96-18-4 20 U 21 U 23 U 22 U 20 U 30 U NA 840 NA 4,000 9,200 9,200 11,000 2.00E+07 1.30E+06 (C) 8.30E+05 2.6 (M*)
1,2,4-Trichlorobenzene 120-82-1 68 U 70 U 76 U 72 U 68 U 100 U NA 4,200 5,900 (X) 9.60E+06 (C) 2.80E+07 2.80E+07 2.80E+07 2.50E+10 9.90E+05 (DD) 1.10E+06 53 (M*)
1,2,4-Trimethylbenzene 95-63-6 20 U 21 U 23 U 22 U 20 U 30 U NA 2,100 570 4.30E+06 (C) 2.10E+07 5.00E+08 5.00E+08 8.20E+10 3.20E+07 (C) 1.10E+05 150 (JT)
1,2-Dibromo-3-chloropropane (DBCP) 96-12-8 68 U 70 U 76 U 72 U 68 U 100 U NA 10 (M); 4.0 ID 220 260 260 260 5.60E+05 4,400 (C) 1,200 DATA
1,2-Dibromoethane (EDB) 106-93-4 20 U 21 U 23 U 22 U 20 U 30 U NA 20 (M); 1.0 110 (X) 670 1,700 1,700 3,300 1.40E+07 92 8.90E+05 0.074 (M*)
1,2-Dichlorobenzene 95-50-1 20 U 21 U 23 U 22 U 20 U 30 U NA 14,000 280 1.10E+07 (C) 3.90E+07 3.90E+07 5.20E+07 1.00E+11 1.90E+07 (C) 2.10E+05 1,500
1,2-Dichloroethane 107-06-2 68 U 70 U 76 U 72 U 68 U 100 U NA 100 7,200 (X) 2,100 6,200 11,000 26,000 1.20E+08 91,000 1.20E+06 0.82 (M*)
1,2-Dichloropropane 78-87-5 20 U 21 U 23 U 22 U 20 U 30 U NA 100 4,600 (X) 4,000 25,000 50,000 1.10E+05 2.70E+08 1.40E+05 5.50E+05 2.1 (M*)
1,3,5-Trimethylbenzene 108-67-8 68 U 70 U 76 U 72 U 68 U 100 U NA 1,800 1,100 2.60E+06 (C) 1.60E+07 3.80E+08 3.80E+08 8.20E+10 3.20E+07 (C) 94,000 100 (JT)
1,3-Dichlorobenzene 541-73-1 20 U 21 U 23 U 22 U 20 U 30 U NA 170 680 26,000 79,000 79,000 1.10E+05 2.00E+08 2.00E+05 (C) 1.70E+05 10 (M*)
1,3-Dichloropropene, cis- 10061-01-5 20 U 21 U 23 U 22 U 20 U 30 U -- -- -- -- -- -- -- -- -- -- --
1,3-Dichloropropene, trans- 10061-02-6 20 U 21 U 23 U 22 U 20 U 30 U -- -- -- -- -- -- -- -- -- -- --
1,3-Dichloropropene (Total) 542-75-6 40 U 42 U 46 U 44 U 40 U 60 U NA 170 180 (X) 1,000 18,000 68,000 1.60E+05 7.80E+08 10,000 6.20E+05 3.1 (J,M*)
1,4-Dichlorobenzene 106-46-7 20 U 21 U 23 U 22 U 20 U 30 U NA 1,700 360 19,000 77,000 77,000 1.10E+05 4.50E+08 4.00E+05 NA 23 (M*)
2-Butanone (MEK) 78-93-3 140 U 140 U 150 U 140 U 140 U 200 U NA 2.60E+05 44,000 5.40E+07 (C) 2.90E+07 2.90E+07 3.50E+07 6.70E+10 1.20E+08 (C,DD) 2.70E+07 31,000 (DD*)
2-Hexanone 591-78-6 20 U 21 U 23 U 22 U 20 U 30 U NA 20,000 ID 9.90E+05 1.10E+06 1.10E+06 1.40E+06 2.70E+09 3.20E+07 (C) 2.50E+06 210 (M*)
2-Methylnaphthalene 91-57-6 68 U 70 U 36 J 44 J 68 U 100 U NA 57,000 4,200 2.70E+06 1.50E+06 1.50E+06 1.50E+06 6.70E+08 8.10E+06 NA 1,700
4-Methyl-2-pentanone (MIBK) 108-10-1 20 U 21 U 23 U 22 U 20 U 30 U NA 36,000 ID 3.70E+07 (C) 4.50E+07 4.50E+07 6.70E+07 1.40E+11 5.60E+07 (C) 2.70E+06 3,300
Acetone 67-64-1 140 170 76 U 170 180 340 NA 15,000 34,000 2.90E+08 (C) 1.30E+08 1.30E+08 1.90E+08 3.90E+11 2.30E+07 1.10E+08 2.60E+05 (EE)
Acrylonitrile 107-13-1 68 U 70 U 76 U 72 U 68 U 100 U NA 100 (M); 52 100 (M); 40 6,600 5,000 5,100 10,000 4.60E+07 16,000 8.30E+06 1.2 (M*)
Benzene 71-43-2 20 U 21 U 23 U 22 U 20 U 30 U NA 100 4,000 (X) 1,600 13,000 34,000 79,000 3.80E+08 1.80E+05 4.00E+05 1.7 (M*)
Bromochloromethane 74-97-5 20 U 21 U 23 U 22 U 20 U 30 U -- -- -- -- -- -- -- -- -- --- --
Bromodichloromethane 75-27-4 20 U 21 U 23 U 22 U 20 U 30 U NA 1,600 (W) ID 1,200 9,100 9,700 19,000 8.40E+07 1.10E+05 1.50E+06 0.61 (M*)
Bromoform 75-25-2 20 U 21 U 23 U 22 U 20 U 30 U NA 1,600 (W) ID 1.50E+05 9.00E+05 9.00E+05 9.00E+05 2.80E+09 8.20E+05 8.70E+05 45 (M*)
Bromomethane 74-83-9 68 U 70 U 76 U 72 U 68 U 100 U NA 200 100 860 11,000 57,000 1.40E+05 3.30E+08 3.20E+05 2.20E+06 0.90 (M*)
Carbon disulfide 75-15-0 20 U 21 U 23 U 22 U 20 U 30 U NA 16,000 ID 76,000 1.30E+06 7.90E+06 1.90E+07 4.70E+10 7.20E+06 (C,DD) 2.80E+05 52 (M*)
Carbon tetrachloride 56-23-5 20 U 21 U 23 U 22 U 20 U 30 U NA 100 760 (X) 190 3,500 12,000 28,000 1.30E+08 96,000 3.90E+05 0.31 (M*)
Chlorobenzene 108-90-7 20 U 21 U 23 U 22 U 20 U 30 U NA 2,000 500 1.20E+05 7.70E+05 9.90E+05 2.10E+06 4.70E+09 4.30E+06 (C) 2.60E+05 82
Chloroethane 75-00-3 68 U 70 U 76 U 72 U 68 U 100 U NA 8,600 22,000 (X) 2.90E+06 (C) 3.00E+07 1.20E+08 2.80E+08 6.70E+11 2.60E+06 (C) 9.50E+05 330
Chloroform 67-66-3 20 U 21 U 23 U 22 U 20 U 30 U NA 1,600 (W) 7,000 7,200 45,000 1.20E+05 2.70E+05 1.30E+09 1.20E+06 1.50E+06 0.26 (M*)
Chloromethane 74-87-3 68 U 70 U 76 U 72 U 68 U 100 U NA 5,200 ID 2,300 40,000 4.10E+05 1.00E+06 4.90E+09 1.60E+06 (C) 1.10E+06 6.9 (M*)
cis-1,2-Dichloroethene 156-59-2 20 U 21 U 23 U 22 U 20 U 30 U NA 1,400 12,000 22,000 1.80E+05 4.20E+05 9.90E+05 2.30E+09 2.50E+06 (C) 6.40E+05 2.1 (M*)
Dibromochloromethane 124-48-1 20 U 21 U 23 U 22 U 20 U 30 U NA 1,600 (W) ID 3,900 24,000 24,000 33,000 1.30E+08 1.10E+05 6.10E+05 0.40 (M*,MM)
Dibromomethane 74-95-3 20 U 21 U 23 U 22 U 20 U 30 U NA 1,600 NA ID ID ID ID ID 2.50E+06 (C) 2.00E+06 3.5 (M*)
Dichlorodifluoromethane 75-71-8 68 U 70 U 76 U 72 U 68 U 100 U NA 95,000 ID 9.00E+05 5.30E+07 5.50E+08 1.40E+09 3.30E+12 5.20E+07 (C) 1.00E+06 12 (M*)
Diethyl ether 60-29-7 20 U 21 U 23 U 22 U 20 U 30 U NA 200 ID 2.80E+07 (C) 8.50E+07 1.50E+08 3.40E+08 8.00E+11 1.10E+08 (C) 7.40E+06 350
Ethylbenzene 100-41-4 20 U 21 U 23 U 22 U 20 U 30 U NA 1,500 360 87,000 7.20E+05 1.00E+06 2.20E+06 1.00E+10 2.20E+07 (C) 1.40E+05 12 (M*)
Hexachloroethane 67-72-1 68 U 70 U 76 U 72 U 68 U 100 U NA 430 1,800 (X) 40,000 5.50E+05 9.30E+05 9.30E+05 2.30E+08 2.30E+05 NA 3.2 (M*)
Iodomethane 74-88-4 340 U 350 U 380 U 360 U 340 U 500 U -- -- -- -- -- -- -- -- -- -- --
Isopropyl benzene (Cumene) 98-82-8 20 U 21 U 23 U 22 U 20 U 30 U NA 91,000 3,200 4.00E+05 (C) 1.70E+06 1.70E+06 2.80E+06 5.80E+09 2.50E+07 (C) 3.90E+05 3.8 (M*)
Methyl-tert-butyl ether (MTBE) 1634-04-4 20 U 21 U 23 U 22 U 20 U 30 U NA 800 1.40E+05 (X) 9.90E+06 (C) 2.50E+07 3.90E+07 8.70E+07 2.00E+11 1.50E+06 5.90E+06 74 (M*)
Methylene chloride 75-09-2 170 U 170 U 190 U 180 U 170 U 250 U NA 100 30,000 (X) 45,000 2.10E+05 5.90E+05 1.40E+06 6.60E+09 1.30E+06 2.30E+06 130
n-Propylbenzene 103-65-1 20 U 21 U 23 U 22 U 20 U 30 U NA 1,600 ID ID ID ID ID 1.30E+09 2.50E+06 1.00E+07 1,800 (DD*)
Naphthalene 91-20-3 68 U 70 U 76 U 89 68 U 100 U NA 35,000 730 2.50E+05 3.00E+05 3.00E+05 3.00E+05 2.00E+08 1.60E+07 NA 67 (M*)
Styrene 100-42-5 20 U 21 U 23 U 22 U 20 U 30 U NA 2,700 2,100 (X) 2.50E+05 9.70E+05 9.70E+05 1.40E+06 5.50E+09 4.00E+05 5.20E+05 150
Tetrachloroethene (PCE) 127-18-4 20 U 21 U 23 U 22 U 20 U 30 U NA 100 1,200 (X) 11,000 1.70E+05 4.80E+05 1.10E+06 2.70E+09 2.00E+05 (C) 88,000 6.2 (M*,EE)
Toluene 108-88-3 20 U 21 U 23 U 22 U 20 U 30 U NA 16,000 5,400 3.30E+05 (C) 2.80E+06 5.10E+06 1.20E+07 2.70E+10 5.00E+07 (C) 2.50E+05 3,700
trans-1,2-Dichloroethene 156-60-5 20 U 21 U 23 U 22 U 20 U 30 U NA 2,000 30,000 (X) 23,000 2.80E+05 8.30E+05 2.00E+06 4.70E+09 3.80E+06 (C) 1.40E+06 12 (M*)
trans-1,4-Dichloro-2-butene 110-57-6 20 U 21 U 23 U 22 U 20 U 30 U -- -- -- -- -- -- -- -- -- -- --
Trichloroethene (TCE) 79-01-6 20 U 21 U 23 U 22 U 20 U 30 U NA 100 4,000 (X) 1,000 11,000 25,000 57,000 1.30E+08 1.10E+05 (DD) 5.00E+05 0.33 (M*,DD*)
Trichlorofluoromethane 75-69-4 20 U 21 U 23 U 22 U 20 U 30 U NA 52,000 NA 2.80E+06 (C) 9.20E+07 6.30E+08 1.50E+09 3.80E+12 7.90E+07 (C) 5.60E+05 19 (M*)
Vinyl acetate 108-05-4 170 U 170 U 190 U 180 U 170 U 250 U NA 13,000 NA 7.90E+05 1.70E+06 2.60E+06 5.80E+06 1.30E+10 5.80E+06 (C) 2.40E+06 160 (M*)
Vinyl chloride 75-01-4 20 U 21 U 23 U 22 U 20 U 30 U NA 40 260 (X) 270 4,200 30,000 73,000 3.50E+08 3,800 4.90E+05 0.082 (M*,MM)
Xylenes, meta- & para- 179601-23-1 41 U 42 U 46 U 43 U 41 U 60 U -- -- -- -- -- -- -- -- -- -- --
Xylene, ortho- 95-47-6 20 U 21 U 23 U 22 U 20 U 30 U -- -- -- -- -- -- -- -- -- -- --
Xylenes, Total 1330-20-7 61 U 63 U 68 U 65 U 61 U 90 U NA 5,600 980 6.30E+06 (C) 4.60E+07 6.10E+07 1.30E+08 2.90E+11 4.10E+08 (C) 1.50E+05 280 (J)
Z:\2020\201515\WORK\Rept\Phase II ESA_October 2022\TBL01_DataSummary-Soil_2022_10.xlsx 400 11/22/2022
Fishbeck | 2 of 2
Table 1 - Soil Data Summary
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
October 2022
Sample Location: APNSB-01 APNSB-02 APNSB-03 APNSB-04 APNSB-05 Field Blank Soil
Statewide Finite VSIC Finite VSIC Particulate
Depth Interval (ft): (2-4) (6-8) (1-3) (4.5-6.5) (4-6) Drinking Water Volatilization to Infinite Direct Soil Saturation
Default GSIP for 5 Meter for 2 Meter Soil Soil
Investigative/Field Duplicate/QC: Investigative Investigative Investigative Investigative Investigative QC Protection (1) Indoor Air Source Contact Concentration (2)
Background Criteria Source Source Inhalation VIAP SL
Laboratory ID: 22102086-07 22102086-08 22102086-09 22102086-10 22102086-11 22102086-12 (1) Criteria (1) Inhalation VSIC (1) (1) (1) (1) Criteria (1) SL (1)
Levels (1) Thickness Thickness Criteria
Collection Date: 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 Criteria
Polynuclear Aromatic Compounds CAS Number
2-Methylnaphthalene 91-57-6 4.4 U 47 U 4.6 U 4.5 U 62 U -- NA 57,000 4,200 2.70E+06 1.50E+06 1.50E+06 1.50E+06 6.70E+08 8.10E+06 NA 1,700
Acenaphthene 83-32-9 4.4 U 47 U 4.6 U 30 62 U -- NA 3.00E+05 8,700 1.90E+08 8.10E+07 8.10E+07 8.10E+07 1.40E+10 4.10E+07 NA 2.00E+05
Acenaphthylene 208-96-8 4.4 U 47 U 4.6 U 4.5 U 62 U -- NA 5,900 ID 1.60E+06 2.20E+06 2.20E+06 2.20E+06 2.30E+09 1.60E+06 NA DATA
Anthracene 120-12-7 4.4 U 47 U 4.6 U 210 62 U -- NA 41,000 ID 1.00E+09 1.40E+09 1.40E+09 1.40E+09 6.70E+10 2.30E+08 NA 1.30E+07
Benzo(a)anthracene 56-55-3 8.3 47 U 4.6 U 230 65 -- NA NLL NLL NLV NLV NLV NLV ID 20,000 NA 1.60E+05 (MM)
Benzo(a)pyrene 50-32-8 7.2 47 U 4.6 U 180 70 -- NA NLL NLL NLV NLV NLV NLV 1.50E+06 2,000 NA NA
Benzo(b)fluoranthene 205-99-2 8.8 47 U 4.6 U 210 130 -- NA NLL NLL ID ID ID ID ID 20,000 NA NA
Benzo(g,h,i)perylene 191-24-2 4.9 47 U 4.6 U 120 89 -- NA NLL NLL NLV NLV NLV NLV 8.00E+08 2.50E+06 NA NA
Benzo(k)fluoranthene 207-08-9 5.7 47 U 4.6 U 110 61 J -- NA NLL NLL NLV NLV NLV NLV ID 2.00E+05 NA NA
Chrysene 218-01-9 13 63 5.0 260 130 -- NA NLL NLL ID ID ID ID ID 2.00E+06 NA NA
Dibenzo(a,h)anthracene 53-70-3 4.4 U 47 U 4.6 U 19 62 U -- NA NLL NLL NLV NLV NLV NLV ID 2,000 NA NA
Fluoranthene 206-44-0 18 60 6.6 700 98 -- NA 7.30E+05 5,500 1.00E+09 7.40E+08 7.40E+08 7.40E+08 9.30E+09 4.60E+07 NA NA
Fluorene 86-73-7 4.4 U 47 U 4.6 U 49 62 U -- NA 3.90E+05 5,300 5.80E+08 1.30E+08 1.30E+08 1.30E+08 9.30E+09 2.70E+07 NA 4.70E+05
Indeno(1,2,3-cd)pyrene 193-39-5 4.4 47 U 4.6 U 150 71 -- NA NLL NLL NLV NLV NLV NLV ID 20,000 NA NA
Naphthalene 91-20-3 4.4 U 47 U 4.6 U 4.5 U 62 U -- NA 35,000 730 2.50E+05 3.00E+05 3.00E+05 3.00E+05 2.00E+08 1.60E+07 NA 67 (M*)
Phenanthrene 85-01-8 4.4 U 47 U 4.6 U 620 62 U -- NA 56,000 2,100 2.80E+06 1.60E+05 1.60E+05 1.60E+05 6.70E+06 1.60E+06 NA 1,700
Pyrene 129-00-0 18 77 8.7 580 120 -- NA 4.80E+05 ID 1.00E+09 (D) 6.50E+08 6.50E+08 6.50E+08 6.70E+09 2.90E+07 NA 2.50E+07
Metals, Total CAS Number
Arsenic (B) 7440-38-2 3,900 3,700 9,100 4,400 9,100 -- 5,800 4,600 4,600 NLV NLV NLV NLV 7.20E+05 7,600 NA NA
Barium (B) 7440-39-3 9,500 18,000 J 9,200 7,000 14,000 -- 75,000 1.30E+06 4.40E+05 (G) NLV NLV NLV NLV 3.30E+08 3.70E+07 NA NA
Cadmium (B) 7440-43-9 76 J 790 1,000 120 J 150 U -- 1,200 6,000 3,600 (G,X) NLV NLV NLV NLV 1.70E+06 5.50E+05 NA NA
Chromium, Total (B, H) 7440-47-3 20,000 50,000 140,000 22,000 38,000 -- 18,000 (total) 30,000 3,300 NLV NLV NLV NLV 2.60E+05 2.50E+06 NA NA
Copper (B) 7440-50-8 19,000 32,000 77,000 48,000 89,000 -- 32,000 5.80E+06 75,000 (G) NLV NLV NLV NLV 1.30E+08 2.00E+07 NA NA
Lead (B) 7439-92-1 16,000 38,000 65,000 6,900 4,600 -- 21,000 7.00E+05 5.10E+06 (G,X) NLV NLV NLV NLV 1.00E+08 4.00E+05 NA NA
Mercury (Total) (B) 7439-97-6 19 U 24 280 940 19 U -- 130 1,700 50 (M); 1.2 48,000 52,000 52,000 52,000 2.00E+07 1.60E+05 NA 22 (M*)
Selenium (B) 7782-49-2 350 U 390 U 36,000 390 U 380 U -- 410 4,000 400 NLV NLV NLV NLV 1.30E+08 2.60E+06 NA NA
Silver (B) 7440-22-4 350 U 62 J 410 69 J 380 U -- 1,000 4,500 100 (M); 27 NLV NLV NLV NLV 6.70E+06 2.50E+06 NA NA
Zinc (B) 7440-66-6 19,000 30,000 290,000 15,000 7,000 -- 47,000 2.40E+06 1.70E+05 (G) NLV NLV NLV NLV ID 1.70E+08 NA NA
Solids, Total (%) -- 93.4 91.1 89.0 90.3 92.8 -- -- -- -- -- -- -- -- -- -- -- --
Results expressed in µg/Kg dry weight.
Bolded values exceed Statewide Default Background Level and an applicable criterion or screening level.
Italicized values are below Statewide Default Background Level but exceed an applicable criterion or screening level.
Underlined parameters are classified as Polynuclear Aromatic Compounds.
Data Qualifiers:
J Estimated value
U Not detected
Footnotes/Abbreviations:
(1)
Part 201 Residential Soil Generic Cleanup Criteria and Screening Levels/Part 213 Risk-based Screening Levels, December 30, 2013 (GSI Criteria Updated June 25, 2018).
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(C) Value is screening level based on the chemical-specific generic soil saturation concentration (Csat).
(D) Calculated criterion exceeds 100 percent; hence it is reduced to 100 percent or 1.00E+09 parts per billion (ppb).
(G) Criterion dependent on receiving surface water (SW) hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total chromium only; evaluated against hexavalent chromium criteria.
(J) Hazardous substance may be present in several isomer forms. Isomer-specific concentrations must be added together for comparison to criteria.
(JT) Hazardous substance may be present in several isomer forms. The VIAP SL may be used for the individual isomer provided that it is the sole isomer detected; however, when multiple isomers are detected in a medium, the isomer-specific concentrations must be added together and compared to the most restrictive VIAP SL of the detected isomers.
(M) Calculated criterion is below the target detection limit (TDL); first number is the criterion (TDL), the second is the risk-based value.
(M*) The VIAP SL may be below TDL. In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to evaluate the risk posed from the pathway.
(W) Concentrations of trihalomethanes must be added together to determine compliance with criterion.
(X) Criterion is not protective for SW used as a drinking water (DW) source.
(DD) Hazardous substance causes developmental effects. Residential direct contact criteria are protective of both prenatal and postnatal exposure.
(DD*) Hazardous substance causes developmental effects. Residential VIAP SLs are protective of both prenatal exposure using a pregnant female receptor and postnatal exposure using a child receptor. Prenatal developmental effects may occur after an acute (i.e. short- term) or full-term exposure.
(EE) The acceptable air concentration (AAC) for the volatile hazardous substances is not derived using standard equations. The hazardous substance may cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The AAC for these hazardous substances is the acute or intermediate minimum risk level (MRL) developed by
the Agency for Toxic Substances and Disease Registry (ATSDR), a USEPA Integrated Risk Information System (IRIS) acute reference concentration, or an acute initial threshold screening level (ITSL) by the EGLE’s Air Quality Division.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
DATA Insufficient physical chemical parameters to calculate a VIAP SL for specified media. If detections are present in specified media, health-based soil vapor value should be used to evaluate risk.
GSIP groundwater surface water interface protection
ID Insufficient data to develop criterion.
NA not available
NLL Not likely to leach under most soil conditions.
NLV Not likely to volatilize under most conditions.
SL screening level
VIAP volatilization to indoor air pathway
VSIC volatile soil inhalation criteria
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Table 2 - Groundwater Data Summary
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
October 2022
Monitoring Location: APNTW-01 APNTW-02 APNTW-03 APNTW-04 APNTW-05 Trip Blank
Residential Flammability Residential GW- Residential GW-
Depth Interval (ft): (6.5-11.5) (6-11) (7-12) (9.5-14.5) (7.5-12.5) Residential GSI Water
(1) (1)
Groundwater (1)
and Explosivity Shallow Not in Contact VIAP
Laboratory ID: 22102086-01 22102086-02 22102086-03 22102086-04 22102086-05 22102086-06 DWC Criteria (1) Solubility (1) (2) (2)
Collection Date: VIAIC SL VIAP SL SL
10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22
Volatile Organic Compounds CAS Number
1,1,1,2-Tetrachloroethane 630-20-6 1U 1U 1U 1U 1U 1U 77 ID 15,000 1.10E+06 ID 3.1 89
1,1,1-Trichloroethane 71-55-6 1U 1U 1U 1U 1U 1U 200 (A) 89 6.60E+05 1.33E+06 ID 180 (FF*) 17,000 (EE*)
1,1,2,2-Tetrachloroethane 79-34-5 1U 1U 1U 1U 1U 1U 8.5 78 (X) 12,000 2.97E+06 ID 2.4 71
1,1,2-Trichloro-1,2,2-trifluoroethane 76-13-1 1U 1U 1U 1U 1U 1U 1.70E+05 (S) 32 1.70E+05 (S) 1.70E+05 ID 840 2,700
1,1,2-Trichloroethane 79-00-5 1U 1U 1U 1U 1U 1U 5.0 (A) 330 (X) 17,000 4.42E+06 NA 0.47 (M*) 14
1,1-Dichloroethane 75-34-3 1U 1U 1U 1U 1U 1U 880 740 1.00E+06 5.06E+06 3.80E+05 4.7 130
1,1-Dichloroethene 75-35-4 1U 1U 1U 1U 1U 1U 7.0 (A) 130 200 2.25E+06 97,000 18 330
1,2,3-Trichloropropane 96-18-4 1U 1U 1U 1U 1U 1U 42 NA 8,300 1.90E+06 NA 1.9 57
1,2,4-Trichlorobenzene 120-82-1 1U 1U 1U 1U 1U 1U 70 (A) 99 (X) 3.00E+05 (S) 3.00E+05 NA 3.8 (M*) 110
1,2,4-Trimethylbenzene 95-63-6 1U 1U 3.8 1U 1U 1U 63/1,000 (E) 17 56,000 (S) 55,890 56,000 (S) 25 (JT) 670 (JT)
1,2-Dibromo-3-chloropropane (DBCP) 96-12-8 1U 1U 1U 1U 1U 1U 0.20 (A) ID 220 1,230 NA 0.00045 (M*,MM) 0.00045 (CC*,M*,MM)
1,2-Dibromoethane (EDB) 106-93-4 1U 1U 1U 1U 1U 1U 0.050 (A) 5.7 (X) 2,400 4.20E+06 ID 0.13 3.8
1,2-Dichlorobenzene 95-50-1 1U 1U 1U 1U 1U 1U 600 (A) 13 1.60E+05 (S) 1.56E+05 NA 370 11,000
1,2-Dichloroethane 107-06-2 1U 1U 1U 1U 1U 1U 5.0 (A) 360 (X) 9,600 8.52E+06 2.50E+06 1.4 41
1,2-Dichloropropane 78-87-5 1U 1U 1U 1U 1U 1U 5.0 (A) 230 (X) 16,000 2.80E+06 5.50E+05 2.6 74
1,3,5-Trimethylbenzene 108-67-8 1U 1U 1.4 1U 1U 1U 72/1,000 (E) 45 61,000 (S) 61,150 ID 18 (JT) 470 (JT)
1,3-Dichlorobenzene 541-73-1 1U 1U 1U 1U 1U 1U 6.6 28 18,000 1.11E+05 ID 2.6 75
1,3-Dichloropropene, cis- 10061-01-5 1U 1U 1U 1U 1U 1U -- -- -- -- -- -- --
1,3-Dichloropropene, trans- 10061-02-6 1U 1U 1U 1U 1U 1U -- -- -- -- -- -- --
1,3-Dichloropropene (Total) (Calc.) 542-75-6 2U 2U 2U 2U 2U 2U 8.5 9.0 (X) 3,900 2.80E+06 1.30E+05 3.3 (J) 95 (J)
1,4-Dichlorobenzene 106-46-7 1U 1U 1U 1U 1U 1U 75 (A) 17 16,000 73,800 NA 5.9 170
2-Butanone (MEK) 78-93-3 2.2 J 5U 5U 5U 5U 2.0 J 13,000 2,200 2.40E+08 (S) 2.40E+08 ID 2,600 (DD) 4.30E+06 (DD)
2-Hexanone 591-78-6 5U 5U 5U 5U 5U 5U 1,000 ID 4.20E+06 1.60E+07 NA 660 20,000
2-Methylnaphthalene 91-57-6 25 U 77 43 28 5U 1.5 J 260 19 25,000 (S) 24,600 ID 66 2,000
4-Methyl-2-pentanone (MIBK) 108-10-1 1U 1U 1U 1U 1U 1U 1,800 ID 2.00E+07 (S) 2.00E+07 ID 660 20,000
Acetone 67-64-1 10 U 10 U 10 U 10 U 10 U 10 U 730 1,700 1.00E+09 (D,S) 1.00E+09 1.50E+07 50,000 (FF*) 50,000
Acrylonitrile 107-13-1 1U 1U 1U 1U 1U 1U 2.6 2.0 (M); 1.2 34,000 7.50E+07 6.40E+06 4.6 140
Benzene 71-43-2 1U 1U 3.7 1U 1U 1U 5.0 (A) 200 (X) 5,600 1.75E+06 68,000 1.0 28
Bromochloromethane 74-97-5 1U 1U 1U 1U 1U 1U -- -- -- -- -- -- --
Bromodichloromethane 75-27-4 1U 1U 1U 1U 1U 1U 80 (A,W) ID 4,800 6.74E+06 ID 1.2 34
Bromoform 75-25-2 1U 1U 1U 1U 1U 1U 80 (A,W) ID 4.70E+05 3.10E+06 ID 89 2,700
Bromomethane 74-83-9 1U 1U 1U 1U 1U 1U 10 5.0 (M); 4.2 4,000 1.45E+07 ID 2.1 (M*) 55
Carbon Disulfide 75-15-0 1U 1U 1.1 1U 1U 1U 800 ID 2.50E+05 1.19E+06 13,000 92 2,100
Carbon Tetrachloride 56-23-5 1U 1U 1U 1U 1U 1U 5.0 (A) 38 (X) 370 7.93E+05 ID 0.41 (M*) 7.7
Chlorobenzene 108-90-7 1U 1U 1U 1U 1U 1U 100 (A) 25 2.10E+05 4.72E+05 1.60E+05 33 940
Chloroethane 75-00-3 1U 1U 1U 1U 1U 4.6 430 1,100 (X) 5.70E+06 (S) 5.74E+06 1.10E+05 620 15,000
Chloroform 67-66-3 1U 1U 1U 1U 1U 1U 80 (A,W) 350 28,000 7.92E+06 ID 0.49 (M*) 14
Chloromethane 74-87-3 1U 1U 1U 1U 1U 1U 260 ID 8,600 6.34E+06 36,000 15 380
cis-1,2-Dichloroethene 156-59-2 1U 1U 1U 1U 1U 1U 70 (A) 620 93,000 3.50E+06 5.30E+05 3.4 95
Dibromochloromethane 124-48-1 1U 1U 1U 1U 1U 1U 80 (A,W) ID 14,000 2.60E+06 ID 0.78 (M*,MM) 23 (MM)
Dibromomethane 74-95-3 1U 1U 1U 1U 1U 1U 80 NA ID 1.10E+07 ID 8.8 260
Dichlorodifluoromethane 75-71-8 1U 1U 1U 1U 1U 1U 1,700 ID 2.20E+05 3.00E+05 ID 13 49
Diethyl Ether 60-29-7 1U 1U 1U 1U 1U 1U 10/3,700 (E) ID 6.10E+07 (S) 6.10E+07 6.50E+05 1,200 36,000
Ethylbenzene 100-41-4 1U 1U 1U 1U 1U 1U 74/700 (E) 18 1.10E+05 1.69E+05 43,000 2.8 74
Hexachloroethane 67-72-1 1U 1U 1U 1U 1U 1U 7.3 6.7 (X) 27,000 50,000 ID 1.5 (M*) 43
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Table 2 - Groundwater Data Summary
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
October 2022
Monitoring Location: APNTW-01 APNTW-02 APNTW-03 APNTW-04 APNTW-05 Trip Blank
Residential Flammability Residential GW- Residential GW-
Depth Interval (ft): (6.5-11.5) (6-11) (7-12) (9.5-14.5) (7.5-12.5) Residential GSI Water
(1) (1)
Groundwater (1)
and Explosivity Shallow Not in Contact VIAP
Laboratory ID: 22102086-01 22102086-02 22102086-03 22102086-04 22102086-05 22102086-06 DWC Criteria (1) Solubility (1) (2) (2)
Collection Date: VIAIC SL VIAP SL SL
10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22
Iodomethane 74-88-4 5U 5U 5U 5U 5U 5U -- -- -- -- -- -- --
Isopropylbenzene (Cumene) 98-82-8 1U 1U 1U 1U 1U 1U 800 28 56,000 (S) 56,000 29,000 0.60 (M*) 15
Methyl tert-Butyl Ether (MTBE) 1634-04-4 1U 1U 1U 1U 1U 1U 40/240 (E) 7,100 (X) 4.70E+07 (S) 4.68E+07 ID 250 7,400
Methylene Chloride 75-09-2 5U 5U 5U 5U 5U 5U 5.0 (A) 1,500 (X) 2.20E+05 1.70E+07 ID 79 (FF*) 8,400
n-Propylbenzene 103-65-1 1U 1U 1U 1U 1U 1U 80 ID ID NA ID 43 (DD) 6,100 (DD)
Naphthalene 91-20-3 25 U 57 22 12 5U 5U 520 11 31,000 (S) 31,000 NA 4.2 (M*) 130
Styrene 100-42-5 1U 1U 1U 1U 1U 1U 100 (A) 80 (X) 1.70E+05 3.10E+05 1.40E+05 33 960
Tetrachloroethene (PCE) 127-18-4 1U 1U 1U 1U 1U 1U 5.0 (A) 60 (X) 25,000 2.00E+05 ID 1.5 (FF*) 130 (EE*)
Toluene 108-88-3 1U 1U 2.0 1U 1U 1U 790/1,000 (E) 270 5.30E+05 (S) 5.26E+05 61,000 300 (FF*) 41,000
trans-1,2-Dichloroethene 156-60-5 1U 1U 1U 1U 1U 1U 100 (A) 1,500 (X) 85,000 6.30E+06 2.30E+05 16 390
trans-1,4-Dichloro-2-butene 110-57-6 2U 2U 2U 2U 2U 2U -- -- -- -- -- -- --
Trichloroethene (TCE) 79-01-6 1U 1U 1U 1U 1U 1U 5.0 (A) 200 (X) 2,200 1.10E+06 ID 0.073 (M*,DD) 10 (DD)
Trichlorofluoromethane 75-69-4 1U 1U 1U 1U 1U 1U 2,600 NA 1.10E+06 (S) 1.10E+06 ID 22 190
Vinyl Acetate 108-05-4 5U 5U 5U 5U 5U 5U 640 NA 4.10E+06 2.00E+07 1.80E+06 690 21,000
Vinyl Chloride 75-01-4 1U 1U 1U 1U 1U 1U 2.0 (A) 13 (X) 1,100 2.76E+06 33,000 0.12 (M*,MM) 2.1 (MM)
Xylenes, meta- & para- 179601-23-1 2.4 2U 2U 2U 2U 2U -- -- -- -- -- -- --
Xylene, ortho- 95-47-6 1U 1U 1.0 1U 1U 1U -- -- -- -- -- -- --
Xylenes, Total 1330-20-7 2.4 J 3U 1.0 J 3U 3U 3U 280/10,000 (E) 49 1.90E+05 (S) 1.86E+05 70,000 75 (J) 2,000 (J)
Polynuclear Aromatic Compounds CAS Number
2-Methylnaphthalene 91-57-6 5U 5U 120 U 3.9 J 5U -- 260 19 25,000 (S) 24,600 ID 66 2,000
Acenaphthene 83-32-9 1U 0.074 J 24 U 0.37 J 1U -- 1,300 38 4,200 (S) 4,240 ID 3,900 (S) 3,900 (S)
Acenaphthylene 208-96-8 1U 1U 24 U 0.10 J 1U -- 52 ID 3,900 (S) 3,930 ID 65 65 (CC*)
Anthracene 120-12-7 1U 0.087 J 24 U 0.045 J 1U -- 43 (S) ID 43 (S) 43.4 ID 43 (S) 43 (S)
Benzo(a)anthracene 56-55-3 1U 0.36 J 24 U 0.14 J 1U -- 2.1 ID NLV 9.4 ID 9.4 (S,MM) 9.4 (S,MM)
Benzo(a)pyrene 50-32-8 1U 0.43 J 24 U 0.18 J 1U -- 5.0 (A) ID NLV 1.62 ID NA NA
Benzo(b)fluoranthene 205-99-2 1U 0.65 J 24 U 0.31 J 1U -- 1.5 (S,AA) ID ID 1.5 ID NA NA
Benzo(g,h,i)perylene 191-24-2 1U 0.31 J 24 U 0.13 J 1U -- 1.0 (M); 0.26 (S) ID NLV 0.26 ID NA NA
Benzo(k)fluoranthene 207-08-9 1U 0.28 J 24 U 1U 1U -- 1.0 (M); 0.80 (S) NA NLV 0.80 ID NA NA
Chrysene 218-01-9 1U 0.54 J 24 U 0.27 J 1U -- 1.6 (S) ID ID 1.6 ID NA NA
Dibenzo(a,h)anthracene 53-70-3 2U 2U 48 U 2U 2U -- 2.0 (M); 0.21 ID NLV 2.49 ID NA NA
Fluoranthene 206-44-0 1U 0.79 J 24 U 0.26 J 1U -- 210 (S) 1.6 210 (S) 206 ID NA NA
Fluorene 86-73-7 1U 1U 24 U 0.65 J 1U -- 880 12 2,000 (S) 1,980 ID 1,700 (S) 1,700 (S)
Indeno(1,2,3-cd)pyrene 193-39-5 2U 0.32 J 48 U 2U 2U -- 2.0 (M); 0.022 (S) ID NLV 0.022 ID NA NA
Naphthalene 91-20-3 1U 1U 24 U 2.5 1U -- 520 11 31,000 (S) 31,000 NA 4.2 (M*) 130
Phenanthrene 85-01-8 1U 0.21 J 24 U 0.76 J 1U -- 52 2.0 (M); 1.7 1,000 (S) 1,000 ID 9.5 290
Pyrene 129-00-0 1U 0.89 J 24 U 0.39 J 1U -- 140 (S) ID 140 (S) 135 ID 140 (S) 140 (S)
Metals, Total CAS Number
Arsenic 7440-38-2 1.0 J 8.2 J 28 J 8.6 J 6.1 -- 10 (A) 10 NLV NA ID NA NA
Barium (B) 7440-39-3 37 210 250 180 70 -- 2,000 (A) 674 (G) NLV NA ID NA NA
Cadmium (B) 7440-43-9 1U 2.4 J 10 U 2.5 J 1U -- 5.0 (A) 3.0 (G,X) NLV NA ID NA NA
Chromium, Total (B,H) 7440-47-3 2.7 J 47 J 93 22 J 2.2 J -- 100 (A) 11 NLV NA ID NA NA
Copper (B) 7440-50-8 1.6 J 71 140 60 1.3 J -- 1,000/1,400 (E) 13 (G) NLV NA ID NA NA
Lead (B) 7439-92-1 0.58 J 200 150 88 0.54 J -- 4.0 (L) 34 (G,X) NLV NA ID NA NA
Mercury (Total) (B) 7439-97-6 0.2 U 0.2 U 0.2 U 0.31 0.2 U -- 2.0 (A) 0.0013 56 (S) 56 ID 0.088 2.5
Selenium (B) 7782-49-2 5U 50 U 5.5 J 50 U 0.54 J -- 50 (A) 5.0 NLV NA ID NA NA
Silver (B) 7440-22-4 0.84 U 8.4 U 6.3 J 8.4 U 0.84 U -- 34 0.20 (M); 0.060 NLV NA ID NA NA
Zinc (B) 7440-66-6 3.9 J 96 J 280 660 12 J -- 2,400 167 (G) NLV NA ID NA NA
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Table 2 - Groundwater Data Summary
Leestma Management, LLC, 1148 & 1204 West Western Ave., Muskegon, Muskegon County, Michigan
October 2022
Monitoring Location: APNTW-01 APNTW-02 APNTW-03 APNTW-04 APNTW-05 Trip Blank
Residential Flammability Residential GW- Residential GW-
Depth Interval (ft): (6.5-11.5) (6-11) (7-12) (9.5-14.5) (7.5-12.5) Residential GSI Water
(1) (1)
Groundwater (1)
and Explosivity Shallow Not in Contact VIAP
Laboratory ID: 22102086-01 22102086-02 22102086-03 22102086-04 22102086-05 22102086-06 DWC Criteria (1) Solubility (1) (2) (2)
Collection Date: VIAIC SL VIAP SL SL
10/21/22 10/21/22 10/21/22 10/21/22 10/21/22 10/21/22
Field Parameters CAS Number
Dissolved Oxygen (DO) (mg/L) -- 1.7 0.1 0.1 U 0.1 0.3 -- ID (EE) ID NA NA -- --
Eh (mV) -- 260 76 71 120 100 -- -- -- -- -- -- -- --
pH (SU) -- 6.9 7.6 9.6 7.4 6.9 -- 6.5 to 8.5 (E) 6.5 to 9.0 ID NA NA -- --
Specific Conductance (µmhos/cm) -- 560 570 510 420 610 -- -- -- -- -- -- -- --
Temperature (°C) -- 18.5 18.7 16.0 15.7 16.1 -- -- -- -- -- -- -- --
Turbidity (NTU) -- 15 86 82 120 6.0 -- -- -- -- -- -- -- --
Results expressed in µg/L.
Bolded values exceed an applicable criterion and/or screening level.
Underlined compounds classified as polynuclear aromatic compounds.
Data Qualifiers:
J Estimated value
U Not detected above the given limit
Footnotes/Abbreviations:
(1)
Part 201 Groundwater Generic Cleanup Criteria and Screening Levels, December 21, 2020.
(2)
EGLE Volatilization to Indoor Air Pathway Screening Levels, September 4, 2020.
(A) Criterion is the state of Michigan drinking water (DW) standard.
(B) Background, as defined in R 299.5701(b), may be substituted if higher than the calculated criterion.
(E) Aesthetic drinking water (DW) value. Notice of aesthetic impact may be employed as an institutional control if concentration exceeds the aesthetic DWC but not the health-based DW value (second value, if provided).
(G) Criterion dependent on receiving surface water (SW) hardness; calculated criteria based on water hardness of 150 mg/L.
(H) Data provided for total Chromium only; compare to hexavalent Chromium criteria. If both trivalent Chromium and hexavalent Chromium are present, the total concentration of both cannot exceed the DW criterion of 100 µg/L.
(J) Substance may be present in several isomer forms. Isomer-specific concentrations shall be added together for comparison to criteria.
(JT) Substance present in several isomer forms. The VIAP SL may be used for the individual isomer provided that it is sole isomer detected; however, when multiple isomers are detected in a medium, the isomer-specific concentrations must be added together and compared to the most restrictive VIAP SL of the
detected isomers.
(L) Concentrations up to the State action level of 15 µg/L may still allow for DW use if soil concentrations are below 400 mg/Kg.
(M) Calculated criterion is below the analytical target detection limit (TDL), therefore, the criterion defaults to the TDL (first value is criterion, second value is the risk based or solubility value).
(M*) The VIAP SL may be below target detection limits (TDL). In accordance with Sec. 20120a(10) when the TDL for a hazardous substance is greater than the developed VIAP SL, the TDL is used to evaluate the risk posed from the pathway.
(S) Criterion defaults to the hazardous substance-specific water solubility limit.
(W) Concentrations of trihalomethanes shall be added together to determine compliance with the Michigan DW standard of 80 µg/L.
(X) Criterion is not protective for SW used as a DW source.
(CC*) Insufficient chemical-physical input parameters have been identified to allow the development of a VIAP SL using standard equations. The VIAP SL for GW is developed based solely on the approach that the department uses for shallow GW. If GW detections are present, soil vapor may be the most appropriate
media to evaluate risk.
(DD) Hazardous substance causes developmental effects. Residential VIAP SLs are protective of both prenatal exposure using a pregnant female receptor and postnatal exposure using a child receptor. Nonresidential VIAP screening levels are protective of prenatal exposure using a pregnant female receptor. Prenatal
developmental effects may occur after an acute (i.e. short- term) or full-term exposure.
(EE) Cold receiving waters >7,000 µg/L; Warm receiving waters >5,000 µg/L; Since a low level of DO can be harmful to aquatic life, the criterion represents a minimum level that on-site samples must exceed. Criteria are not applicable if GW Carbonaceous Biochemical Oxygen Demand (CBOD) is less than 10,000 µg/L
and GW ammonia concentration is less than 2,000 µg/L.
(EE*) The acceptable air concentration (AAC) for the volatile hazardous substance is not derived using standard equations. The hazardous substance may cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The AAC for this hazardous substance is the acute or intermediate
minimum risk level (MRL) developed by the Agency for Toxic Substances and Disease Registry (ATSDR), a USEPA Integrated Risk Information System (IRIS) acute reference concentration, or an acute initial threshold screening level (ITSL) by the EGLE’s Air Quality Division.
(FF*) The AAC for the volatile hazardous substances are based on toxicity values that have been identified to have the potential to cause adverse human health effects for less than chronic exposures (i.e. short-term or acute). The short-term exposure for shallow groundwater VIAP SLs are based on modification of the
standard equations by the department to develop applicable shallow groundwater VIAP SLs.
(MM) Hazardous substance is a carcinogen with a mutagenic mode of action. The cancer potency values used in calculating VIAP SLs are modified using age-dependent adjustment factors for those carcinogenic chemicals identified as mutagenic.
DWC drinking water criterion
GSI groundwater surface water interface
ID Insufficient data to develop criterion.
NA not available
NLV Not likely to volatilize under most conditions.
SL screening level
VIAIC volatilization to indoor air inhalation criteria
VIAP volatilization to indoor air pathway
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Attachment D
Reimbursement Agreement
405
RESOLUTI ON APPROVING BROWNFI ELD PLAN
AMENDMENT, 1ST AMENDME NT,
Adelaide Pointe QOZB, LLC (1148-1204 West Western)
Adelaide Pointe Project, 1st Amendment
County of Muskegon, Michigan
2023-January 10
Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of
Muskego n, Michigan (the "City"), held in the City Commis sion Chambers on the 10th day of
January, 2023 at 5:30 p.m., prevailing Eastern Time.
PRESE NT:
ABSENT:
The following preamble and resolut ion were offered by __________ ____ and
support ed by ________ ______.
WHEREA S, in accordanc e with the provis ions of Act 381, Public Acts of Michigan, 1996,
as amended ("Act 381"), the City of Muskegon Brownfield Redevelo pment Authority (the
"Authority" ) has prepared and approv ed a Brownfield Plan Amendment, 1st Amendment and
WHEREA S, the Authority has forwarded the Brownfield Plan Amendment, 1st Amendment, to
the City Commission request ing its approv al of the Brownfield Plan Amendment, 1st Amendment;
and
NOW, THE RE FO RE, BE IT RESOLV E D THA T:
1. That the Brownfield Plan constitut es a public purpos e under Act 381.
2. That the Brownfield Plan meets all the requirements of Section 13(1) of Act 381.
3. That the propos ed method of financing the costs of the eligible activities, as identified
in the Brownfield Plan and defined in Act 381, is feasible and the Authority has the
authority to arrange the financing.
4. That the costs of the eligible activities propos ed in the Brownfield Plan are
reasonable and necess ary to carry out the purpos es of Act 381.
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5. That the amount of captured taxable value estimated to result from the adoption of the
Brownfield Plan is reasonable.
6. That the Brownfield Plan in the form presented is approved and is effective
immediately.
7. That all resolutions or parts of resolutions in conflict herewith shall be and the same are
hereby rescinded.
Be it Further Resolved that the Mayor and City Clerk are hereby authorized to execute all
documents necessary or appropriate to implement the provisions of the Brownfield Plan.
AYES:
NAYS:
ABSENT:
RESOLUTION DECLARED APPROVED.
_____________________________________
Ann Marie Meisch, City Clerk
_____________________________________
Kenneth D. Johnson, Mayor
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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 January 10, 2023 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.
______________________________
Ann Marie Meisch, City Clerk
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