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CITY OF MUSKEGON
CITY COMMISSION MEETING
January 14, 2025 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
☐ CALL TO ORDER:
☐ PRAYER:
☐ PLEDGE OF ALLEGIANCE:
☐ ROLL CALL:
☐ HONORS, AWARDS, AND PRESENTATIONS:
A. Thredz Y3 Program Recognition Manager's Office
B. Audit Presentation-ACFR by Brickley Delong Finance
☐ PUBLIC COMMENT ON AGENDA ITEMS:
☐ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Cameras for City Hall and Police Department City Clerk
C. EGLE Grant Development Agreement, City of Muskegon and Muskegon
Limited Dividend Housing Association, Lofts of Muskegon, 122 W.
Muskegon Ave. Economic Development
D. Ordinance Change: Parental Responsibility Ordinance - SECOND READ
Public Safety
E. Amity Bridge Resolution Public Works
F. Downtown Development Authority On-Premises Liquor License- Puerto
Vallarta Mexican Grill and Bar, LLC, 292 W. Western Ave. Ste. 103
Economic Development
G. Rezoning of 1727 Beidler St. Planning
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☐ PUBLIC HEARINGS:
A. Neighborhood Enterprise Zone Certificates - 558, 568, 601, 608, 613, 621
Jackson; 522, 532 Leonard; 501, 503, 505 Alva; 502, 504 Herrick and 460
Langley. Economic Development
☐ UNFINISHED BUSINESS:
☐ NEW BUSINESS:
☐ ANY OTHER BUSINESS:
☐ PUBLIC COMMENT ON NON-AGENDA ITEMS:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
☐ CLOSED SESSION:
☐ ADJOURNMENT:
AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF THE CITY OF
MUSKEGON AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES
To give comment on a live-streamed meeting the city will provide a call-in telephone
number to the public to be able to call and give comment. For a public meeting that is
not live-streamed, and which a citizen would like to watch and give comment, they
must contact the City Clerk’s Office with at least a two-business day notice. The
participant will then receive a zoom link which will allow them to watch live and give
comment. Contact information is below. For more details, please visit:
www.shorelinecity.com
The City of Muskegon will provide necessary reasonable auxiliary aids and services, such
as signers for the hearing impaired and audio tapes of printed materials being
considered at the meeting, to individuals with disabilities who want to attend the
meeting with twenty-four (24) hours’ notice to the City of Muskegon. Individuals with
disabilities requiring auxiliary aids or services should contact the City of Muskegon by
writing or by calling the following:
Ann Marie Meisch, MMC. City Clerk. 933 Terrace St. Muskegon, MI 49440. (231)724-6705.
clerk@shorelinecity.com
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Audit Presentation-ACFR by Brickley Delong
Submitted by: Department: Finance
Brief Summary:
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes
Information
Technology
Other Division Heads
Communication
Legal Review
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ANN UAL COMP REHENSIVE
Financial Report
JU LY 2 0 2 3 - JU NE 2 0 24
F IS CAL YE AR ENDED JUNE 30 , 2 0 24
933 Terrace Street | Muskegon, Michigan
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CITY OF MUSKEGON,
MICHIGAN
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2024
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
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City of Muskegon
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................. 5
Certificate of Achievement for Excellence in Financial Reporting......................................................... 12
Organization Chart .................................................................................................................................. 13
List of Principal Officials ........................................................................................................................ 14
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 ...................................................................... 101
Retiree Healthcare System Schedule of Investment Returns ............................................................. 102
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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.............................................................................................................................. 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 .......................................................................................................................... 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
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City of Muskegon
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends
Net Position by Component ............................................................................................................... 136
Changes in Net Position ..................................................................................................................... 137
Fund Balances of Governmental Funds ............................................................................................. 139
Changes in Fund Balances of Governmental Funds .......................................................................... 140
Revenue Capacity
Governmental Activities Revenues by Source ................................................................................... 141
Taxable, Assessed and Equalized and Estimated Actual Valuation of Property................................ 142
Principal Property Taxpayers ............................................................................................................. 143
Property Tax Rates – Direct and Overlapping Government Units ..................................................... 144
Property Tax Levies and Collections ................................................................................................. 145
Total Income Tax Collected and Number of Returns Filed ............................................................... 146
Debt Capacity
Ratio of Outstanding Debt by Type ................................................................................................... 148
Direct and Overlapping Debt ............................................................................................................. 149
Legal Debt Margin Information ......................................................................................................... 150
Revenue Bond Coverage .................................................................................................................... 151
Demographic and Economic Information
Demographic and Economic Statistics ............................................................................................... 152
Principal Employers ........................................................................................................................... 153
Operation Information
Full-time Equivalent Government Employees ................................................................................... 154
Operating Indicators by Function/Program ........................................................................................ 155
Capital Asset Statistics by Function/Program .................................................................................... 156
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 .................................................................................................... 158
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control over Compliance Required by
the Uniform Guidance .................................................................................................................... 160
Schedule of Expenditures of Federal Awards ..................................................................................... 163
Notes to Schedule of Expenditures of Federal Awards ....................................................................... 166
Schedule of Findings and Questioned Costs ....................................................................................... 167
Client Documents
Summary Schedule of Prior Audit Findings ................................................................................... 172
Corrective Action Plan ................................................................................................................... 173
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CITY MANAGER'S OFFICE
December 18, 2024
To the Honorable Mayor, Members of the City Commission, and Citizens of the City of
Muskegon:
State law requires that every general-purpose local government publish a complete set of
audited financial statements within six months of the close of each fiscal year. This report is
issued to fulfill that requirement for the fiscal year ending June 30, 2024.
Management assumes full responsibility for the completeness and reliability of the
information in this report, based upon a comprehensive internal control framework
established for this purpose. Because the cost of internal control should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance
that the financial statements are free of any material misstatements.
Brickley DeLong, PC, Certified Public Accountants, has issued an unmodified (“clean”)
opinion on the City of Muskegon’s financial statements for the fiscal year ending June 30,
2024. The independent auditor’s report is located at the front of the financial section of this
report.
Management’s discussion and analysis (MD&A) follows the independent auditor’s report and
provides a narrative introduction, overview, and analysis of the basic financial statements.
MD&A complements this letter of transmittal and should be read in conjunction with it.
Profile of the government
The City of Muskegon operates under a Commission-Manager form of government and
provides a full range of traditional municipal services. Policy-making and legislative
authority are vested in the Commission, which consists of the mayor and six commissioners.
Two commissioners are elected at large, and voters from the four respective wards elect each
of the four ward commissioners. Commission members serve four-year terms, with the two
at large members elected every four years in odd years preceding the Michigan Gubernatorial
election, and the four ward commissioners elected every four years in odd years preceding
the Presidential election. The mayor is also elected at-large for a four-year term in the year
prior to the Michigan Gubernatorial election. The Mayor and Commission appoint the City
Manager, who oversees day-to-day operations in the City.
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CITY MANAGER'S OFFICE
The City of Muskegon provides a full range of services, including police and fire protection;
solid waste collection (contracted); 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 must 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 is
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, division heads, 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 and, with a 2020 US Census population of 38,318, is the largest
city on the eastern shore of Lake Michigan. The city is in Muskegon County and 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 an active port of call for the Great Lakes cruise industry, with more than
20 cruise ship visits annually, bringing more than 170,000 passengers.
• Muskegon is home to successful summertime festivals that attract more than 100,000
visitors to the community annually. These include Taste of Muskegon, Bike Time
and Rebel Road, the Unity Christian Music Festival, the Great Lakes Surf Festival,
the Burning Foot Beer Festival, the Muskegon Polish Festival, the Muskegon County
Latino Festival, and the Michigan Irish Music Festival, among others.
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CITY MANAGER'S OFFICE
• 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 and is finishing a $10 million expansion. At the same
time, 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. The 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. The
newest piece, Portal, was unveiled in the summer of 2024 on City property adjacent
to Shoreline Drive. It was completed by City of Muskegon resident and artist Lee
Brown.
• Muskegon is home to three historic museum ships that attract thousands of visitors
each year:
o USS Silversides, a rare surviving World War II submarine maintained in
pristine condition, is docked at the Muskegon Lake Channel;
o 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
o 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. Manufacturing is strong in 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 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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CITY MANAGER'S OFFICE
Long-term financial planning and major initiatives
The City ended FY 2023-24 with General Fund revenues exceeding expenses by $471,320
(as found on the Statement of Revenues, Expenditures and Changes in Fund Balances sheet).
However, $900,000 had to be transferred to other funds to stabilize non-general fund budgets,
using up the excess revenues in the General Fund and reducing our fund balance by
$428,680. It’s worth noting this is less than initially anticipated.
The unassigned fund balance in the General Fund at year-end stands at $5,124,424 or 13.08%
of total actual General Fund revenues for the preceding year (fiscal year ending June 2023).
This amount meets the Commission's minimum (13%) policy guidelines for budgetary and
planning purposes. This is a decrease in our fund balance ratio from the previous year. This
decrease is attributed to several factors, including (but not limited to) an increase in revenues.
One of the side effects of increased revenues is the need to put aside more dollars for savings.
This will be a consideration in future budgets.
In addition to the unassigned fund balance in the General Fund, the City maintains an internal
Budget Stabilization Fund, which has a fund balance of $1,800,000. These dollars are
currently shown as assigned for capital projects and public improvements in the General
Fund. In an extreme situation, the City Commission could use these dollars.
Adequate unassigned fund balances are maintained to allow the City to continue providing
services to the community in case of unexpected emergencies, 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 of future
developments. The City anticipates General Fund revenues will grow over the next five
years.
Among the City's major initiatives and accomplishments in the fiscal year 2023-24 were the
following:
• In 2019, the City started an ambitious infill housing program to provide new housing
stock across the community. In 2024, the program constructed new homes
throughout the City. Since the program’s inception, the City has completed or
initiated the construction of more than 150 homes. To date, 50% of homes sold as
part of this program have been purchased by individuals or families at 120% or less
of the Area Median Income (AMI).
• Construction continued at Adelaide Point in 2024. The waterfront developments will
feature more than $200 million in investments and create hundreds of new housing
opportunities in the City.
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CITY MANAGER'S OFFICE
• Parkland Properties revealed its plans to redevelop the former Shaw Walker property
on lower West Western Ave. This will be more than a $200 million mixed-use
development project that will bring hundreds of additional housing options to the city
at various price points. The redevelopment of lower West Western Ave. is one of the
last major redevelopment areas in Muskegon’s downtown.
• Fiscal year 2023-24 was our first full fiscal year with the City’s reestablished Parks
and Recreation Department.
• The City resumed management of Hartshorn Municipal Marina
• The City saw reconstruction of roads, water, and sewer infrastructure in Bluffton.
• The City continues progressing on its lead service line replacement initiatives and
anticipates all lead service lines will be replaced by the end of 2036.
Enterprise Funds (Water & Sewer)
For several years, the City has actively engaged in the State of Michigan’s Drinking Water
State Revolving Fund (DWSRF) and Clean Water State Revolving Fund (SRF) programs to
aid in the replacement of water and sewer infrastructure throughout the City. Infrastructure
that, in many cases, has been in use for a century or more.
These programs are run as a reimbursement of funds spent by the local municipality.
Reimbursements come several weeks to months after reimbursement documentation is
submitted to the State. Because the City’s fiscal year ends in the middle of construction
season, the Water Fund will often show a more significant deficit than might exist during the
non-construction season because the City is waiting on reimbursements from the state. For
example, at the end of FY 2023, the City was waiting on nearly $1 million in reimbursements
from the state.
This situation has highlighted two things:
1. The Water Fund has been operating at a loss primarily because of the construction
activity, and additional revenue is needed.
2. The Water Fund’s net position needs to be increased to the American Water Works
Association’s (AWWA) recommended six months of operational expenses.
To achieve these two goals, the City Commission instituted a debt service fee in 2023 that is
paid by all water and sewer users in the City. This debt service fee is based on the previous
fiscal year’s debt payments. Additionally, the city anticipates adjusting commodity rates to
build up the Water Fund’s net position to reach the AWWA’s six months of operational
cushion.
This financial cushion will allow the Water Fund to absorb construction costs while waiting
for reimbursements.
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CITY MANAGER'S OFFICE
It is worth noting that despite these challenges, it is still in the City’s best interest to take
advantage of these state revolving loan fund programs for water and sewer replacement. The
City of Muskegon, like all municipalities in the State of Michigan, must replace all its lead
service lines by the end of the 2030s per state mandates. The most economical way to
achieve this is by taking advantage of the state revolving loan funds, which allow projects to
be completed at an overall discount.
Over the last few years, the State of Michigan has reduced the grant portion of the DWSRF
and SRF programs. Administrative leadership at the City has been in contact with the
governor’s office and with our state legislators, expressing how important it is to cities like
Muskegon that the state maintains these programs with meaningful grant forgiveness to
ensure that our lead service line replacement windows are met. This has become even more
important now that the EPA has noted a federal timeline of 10 years to replace lead service
lines across the country. If this EPA rule comes into force, the administration anticipates that
the cost of replacing our lead service lines will increase because of increased demand for
materials nationwide.
Relevant financial policies
The City of Muskegon has adopted a comprehensive set of financial policies to ensure
adequate protection of its assets from loss, theft, or misuse and to provide good accounting
data to prepare financial statements in conformity with generally accepted accounting
principles.
Budgetary control is maintained through an annual budget resolution passed by the City
Commission. A review of estimated expenditures retains fiscal control at the functional level
before purchasing is approved. Encumbrances are not recorded in the City’s funds.
However, the City utilizes an informal monitoring system to facilitate budgetary control over
proposed purchases. This system uses online 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 before 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 ending
June 30, 2023. This was the 37th consecutive year that the City has received this award. The
City has submitted the June 30, 2024, ACFR for consideration but has not received award
confirmation. To be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized ACFR that satisfies generally accepted accounting
principles and applicable program requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for one year.
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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CITY MANAGER'S OFFICE
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 preparing this report. Credit also must be
given to the Mayor and Commissioners for their support in maintaining the highest standards
of professionalism in managing the City of Muskegon’s finances.
Respectfully submitted,
Jonathan C. Seyferth Kenneth D. Grant
City Manager Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Muskegon
Michigan
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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Organizational Structure 2023-24
Mayor and City Commission
City Manager & Deputy 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
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, 2024
ELECTED OFFICIALS
Mayor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ken Johnson
At Large
Commissioner. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Willie German
Ward 2
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jay Kilgo
Ward 1
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Destinee Keener
Ward 3
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Katrina Kochin
Ward 4
Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rachel Gorman
At Large
Vice Mayor-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, 2024, 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, 2024, 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.
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.
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.
Grand Haven | Grand Rapids | Hart | Muskegon
www.brickleydelong.com
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BRICKLEY DELONG
City Commission
City of Muskegon
Page 2
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 judgment 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 judgment, 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.
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.
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BRICKLEY DELONG
City Commission
City of Muskegon
Page 3
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 18, 2024
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2024 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, 2024. 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 $134,144,126 as of June 30, 2024. The City has a deficit in unrestricted net
position of $15,324,294. 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 $11,827,858 during the year ended June 30, 2024.
The City’s governmental funds reported combined ending fund balance of $21,249,076, a decrease of
$714,963 (3%) from the prior year.
The City’s General Fund reported a total fund balance of $9,589,228, a decrease of $428,680 from the
prior year balance of $10,017,908.
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 Annual Comprehensive 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 eight 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 $134,144,126 as of June 30, 2024. This is an increase of
$11,827,858 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
6/30/2024 6/30/2023 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Change
Current and other assets $48,433 $49,557 $14,621 $9,644 $63,054 $59,201 6.51%
Capital assets 106,998 106,949 76,868 71,643 183,866 178,592 2.95%
Total Assets 155,431 156,506 91,489 81,287 246,920 237,793 3.84%
Deferred outflow s of resources 6,828 12,239 475 851 7,303 13,090 -44.21%
Total Assets and Deferred Outflow s of Resources 162,259 168,745 91,964 82,138 254,223 250,883 1.33%
Long-term liabilities 72,905 81,305 17,354 16,544 90,259 97,849 -7.76%
Current liabilities 14,704 18,217 4,490 3,774 19,194 21,991 -12.72%
Total Liabilities 87,609 99,522 21,844 20,318 109,453 119,840 -8.67%
Deferred inflow s of resources 9,076 7,869 1,549 858 10,625 8,727 21.75%
Total Liabilities and Deferred Inflow s of Resources 96,685 107,391 23,393 21,176 120,078 128,567 -6.60%
Net Position `
Net investment in capital assets 77,860 77,169 60,004 57,496 137,864 134,665 2.38%
Restricted 10,591 7,228 1014 822 11,605 8,050 44.16%
Unrestricted -22,877 -23,043 7,552 2,644 -15,325 -20,399 -24.87%
Total Net Position $65,574 $61,354 $68,570 $60,962 $134,144 $122,316 9.67%
* As restated
The bulk of the City’s net position, $137,863,309, 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 $11,605,111 of the City’s net position are legally restricted as to use. The City has a deficit in
unrestricted net position of $15,324,294. 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 by $5,074,387 during the year.
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Changes in net position. The City’s total revenues were $90,720,721 for the year ended June 30, 2024.
This represents a .58% decrease over total revenues collected during the prior fiscal year.
Approximately 33% of the City’s revenue stream came from charges to users of specific services such as
water or sewer. Another 14% came from grants from the state and federal governments and 26% 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, 2024 was $78,892,863. This
represents a 4.9% decrease from reported expenses for the last fiscal year ended June 30, 2023. 74% of
the City’s expenses were for governmental activities such as police and fire protection, streets, parks,
and general administration. The remaining 26% 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 $4,219,730 and the net position for
business-type activities increased by $7,608,128. 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
6/30/2024 6/30/2023 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Change
Program revenues
Charges for services $10,942 $11,393 $21,139 $20,818 $32,081 $32,211 -0.40%
Operating grants and contributions 11,468 12,341 130 427 11,598 12,768 -9.16%
Capital grants and contributions 5,345 3,801 5,517 2,290 10,862 6,091 78.33%
General revenues
Property taxes 11,017 10,260 - - 11,017 10,260 7.38%
Income taxes 12,767 12,196 - - 12,767 12,196 4.68%
State shared revenues 6,342 13,168 - - 6,342 13,168 -51.84%
All other 6,014 4,527 40 28 6,054 4,555 32.91%
Total revenues 63,895 67,686 26,826 23,563 90,721 91,249 -0.58%
Governmental activities expenses
Public representation 2,723 1,978 - - 2,723 1,978 37.66%
Administrative services 1037 1095 - - 1,037 1,095 -5.30%
Financial services 5,792 6,146 - - 5,792 6,146 -5.76%
Public safety 16,243 18,908 - - 16,243 18,908 -14.09%
Public w orks 4,677 4,561 - - 4,677 4,561 2.54%
Highw ays, streets and bridges 7,755 7,480 - - 7,755 7,480 3.68%
Community and economic development 11,004 13,217 - - 11,004 13,217 -16.74%
Culture and recreation 8,151 7,870 - - 8,151 7,870 3.57%
General administration 702 978 - - 702 978 -28.22%
Interest on long-term debt 861 866 - - 861 866 -0.58%
Business-type activities expenses
Sew er - - 8,983 8,609 8,983 8,609 4.34%
Water - - 10,435 10,759 10,435 10,759 -3.01%
Marina and launch ramp - - 530 490 530 490 8.16%
Total expenses 58,945 63,099 19,948 19,858 78,893 82,957 -4.90%
Change in net position before transfers 4,950 4,587 6,878 3,705 11,828 8,292 42.64%
Transfers (730) (1,341) 730 1,341 - - -
Change in net position 4,220 3,246 7,608 5,046 11,828 8,292 42.64%
Net position at beginning of year 61,354 58,108 60,962 55,916 122,316 114,024 7.27%
Net position at end of year $65,574 $61,354 $68,570 $60,962 $134,144 $122,316 9.67%
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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, 2024 was
$58,944,667.
• The net cost that City taxpayers paid for these activities through local property taxes and income
taxes was $31,189,415, or about 53% 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
6/30/2024 6/30/2023 % Change 6/30/2024 6/30/2023 % Change
Governmental activities
Public safety $16,243 $18,908 -14.09% $13,401 $15,634 -14.28%
Public w orks 4,677 4,562 2.52% 3,358 3,184 5.46%
Highw ays, streets and bridges 7,755 7,480 3.68% 941 0 0.00%
Community and economic development 11,004 13,217 -16.74% 5,685 7,702 -26.19%
Culture and recreation 8,151 7,870 3.57% 156 1,331 -88.28%
All other 11,114 11,062 0.47% 7,648 7,714 -0.86%
Total governmental activities $58,944 $63,099 -6.58% $31,189 $35,565 -12.30%
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, 2024, the City’s total business-type activities realized an
overall increase in net position of $7,608,128.
Sewer Fund net position increased $3,392,523 primarily from the result of adjustments to utility rates.
The Water Fund saw a net position increase of $3,608,847. Marina and Launch Ramp Fund net position
increased $382,801.
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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, 2024 were the General Fund, the Major
Street and Trunkline Fund, the Trinity Health Arena 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%)
6/30/2024 $5,124,424 -12.52% $39,157,873 13.09%
6/30/2023 5,857,568 -26.61% 34,144,767 17.16%
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%
For the year ended June 30, 2024, General Fund revenues were $243,047 higher than the final amended
budget. City income tax collections were the driving force behind this revenue surge. Income tax
collections are up $286,513 from the previous fiscal year.
Intergovernmental revenues are up by $55,487 from last year. Federal grants this fiscal year increased
by $117,296. Funds received from State grants decreased by $202,826. State sales tax constitutional
and County Village Township Revenue Sharing (CVTRS) funds were up by $141,017 from the last fiscal
year.
Overall this year, General Fund expenditures exceed revenues reducing overall fund balance by
$428,680. Our fund balance is $9,589,228 which exceeds our Financial Policy standard which requires
the City to maintain an unassigned fund balance equal to at least 13% of actual General Fund Revenues
for the preceding year.
General Fund expenditures were $202,618 lower than projected in the final amended budget. The
variance from the final budgeted expenditures was insignificant—less than 1%. Some of the key areas
that were higher than budgeted were Public Representation Services, General Sanitation, and Parks.
Major Street and Trunkline, Trinity Health Arena, and State Grants 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, 2024, the fund balance of the Major Street and Trunkline Fund increased by $1,075,473.
Public Works plans to spend this fund balance down on anticipated future projects in the 25/26 fiscal
year.
Trinity Health Arena is a ran by the City of Muskegon. The bulk of the revenue generated at the Arena is
from our contract with the Muskegon Lumberjacks’ youth hockey team. We also generate revenue from
other sporting activities such has Arena football, indoor soccer, and high school hockey games. The City
also has leases with two restaurants located at the Arena. Charges for services were slightly up from the
previous fiscal year. Capital outlays are down significantly from the previous year because we did not
have any large projects in 23/24 fiscal year. The City did receive $410,471 federal funds from
Revitalization and Placing Program for qualifying upgrades made to the Arena. The fund balance of the
Arena went up by $38,518.
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The State Grant fund is used by City to track large state and federal grants and expenditures. Most of
our American Rescue Plan Act (ARPA) federal grants flow thru this fund. ARPA expenditures for the
fiscal year 23/24 were $1,626,157. Major grants from the State of Michigan flow also thru this fund.
This includes reimbursements for Windward Pointe, Adelaide Pointe, Pure Muskegon, and Harbor 31.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2024, the City had invested $183,866,487 in a variety of capital assets, including land,
streets, equipment, buildings, water and sewer lines, and vehicles. This is an increase of $5,274,738
from capital assets reported as of June 30, 2023. 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 the City’s capital asset investment.
Long-Term Debt Bond Ratings
At June 30, 2024, the City had $47,165,687 in bonds and other The City’s limited full faith and credit bonds
long-term obligations outstanding. This represents a .12% (bonds guaranteed by the City’s taxing
increase from the prior year. The City issued new debt for
water and sewer improvements. powers) received a rating of A+ from
Standard & Poor’s in 2023.
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
6/30/2024 6/30/2023 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Change
Due w ithin one year $2,106 $2,025 $1,647 $1,505 $3,753 $3,530 6.32%
Due in more than one year 29,104 30,565 14,309 13,016 43,413 43,581 -0.39%
Total bonds & other obligations $31,210 $32,590 $15,956 $14,521 $47,166 $47,111 0.12%
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 $562,824 at year-end as
shown in the table below. This represents a decrease of 33% 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
6/30/2024 6/30/2023 6/30/2024 6/30/2023 Change
Due w ithin one year $275 $265 $275 $265 3.77%
Due in more than one year 287 568 287 568 -49.47%
Total bonds & other obligations $562 $833 $562 $833 -32.53%
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City’s fiscal year 2024-25 capital budget anticipates spending $24,746,843 for capital projects,
consisting of street improvements, water and sewer system improvements, scheduled equipment
replacements, and the replacement of police department equipment.
From an operating standpoint, the City’s 2024-25 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 270.5.
• 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 2.4% from $11,957,105 for the year ended June 30, 2023 to $12,243,618
for the year ended June 30, 2024. For 2024-25, the City has estimated income tax revenue to be
$12,750,000.
Year City Income Tax Revenues Percent Change
6/30/2024 $12,243,618 2.4%
6/30/2023 $11,957,105 19.5%
6/30/2022 $10,002,623 8.1%
6/30/2021 $9,256,826 1.3%
6/30/2020 $9,137,714 5.1%
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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 2024-25, the City tax levy will be at 9.6732 mills for general operations and 2.8838 mills for
sanitation service. We project that $9,211,585 in total property tax revenue will be collected during
fiscal year 2024-25.
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
6/30/2024 $5,321,361 2.7%
6/30/2023 $5,180,344 1.8%
6/30/2022 $5,087,587 7.5%
6/30/2021 $4,733,888 15.0%
6/30/2020 $4,117,935 -3.6%
For 2024-25, the City projects $5,650,382 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
6/30/2024 $6,768,873 -9.4%
6/30/2023 $7,471,277 19.1%
6/30/2022 $6,271,210 5.2%
6/30/2021 $5,961,524 9.4%
6/30/2020 $5,450,220 6.2%
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The City is projecting street revenues for fiscal year 2024-25 of $6,340,000.
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 $20,699,804 during the year ended June 30, 2024. Charges to
customers are based on the number of metered services used times rates periodically set by the City
Commission. Water and sewer rates will increase by debt service fees 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 wastewater 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 stabilize 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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FINANCIAL STATEMENTS
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City of Muskegon
STATEMENT OF NET POSITION
June 30, 2024
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets
Cash and investments $ 27,124,474 $ 5,665,106 $ 32,789,580 $ 620,879
Assets managed by others 1,636,146 - 1,636,146 -
Receivables
Accounts and notes 3,628,487 3,680,400 7,308,887 35,273
Leases 364,859 96,284 461,143 -
Due from other governmental units 3,543,522 2,460,099 6,003,621 -
Internal balances 503,448 (503,448) - -
Inventories 5,427 586,800 592,227 -
Prepaid items 677,353 155,982 833,335 -
Total current assets 37,483,716 12,141,223 49,624,939 656,152
Noncurrent assets
Restricted cash and investments - 918,000 918,000 -
Advances to component units 553,233 - 553,233 -
Leases receivable, less amounts due within one year 7,858,774 1,393,815 9,252,589 -
Notes receivable, less amounts due within one year 125,929 - 125,929 -
Capital assets, net
Nondepreciable 18,535,305 12,351,988 30,887,293 400,000
Depreciable 88,462,878 64,516,316 152,979,194 244,585
Net other postemployment benefits asset 2,411,470 167,643 2,579,113 -
Total noncurrent assets 117,947,589 79,347,762 197,295,351 644,585
Total assets 155,431,305 91,488,985 246,920,290 1,300,737
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 5,964,360 414,635 6,378,995 -
Related to other postemployment benefits 863,799 60,050 923,849 -
Total deferred outflows of resources 6,828,159 474,685 7,302,844 -
Total assets and deferred outflows of resources 162,259,464 91,963,670 254,223,134 1,300,737
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF NET POSITION—CONTINUED
June 30, 2024
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 5,113,087 $ 1,850,905 $ 6,963,992 $ 66,955
Due to other governmental units 235,921 867,036 1,102,957 -
Short-term note 549,995 - 549,995 -
Unearned revenues—unused Farmers Market tokens 58,853 - 58,853 -
Unearned revenues—expenditure-driven grants 6,639,969 - 6,639,969 -
Unearned revenues—prepaid fees - 125,588 125,588 -
Bonds and other obligations, due within one year 2,106,442 1,646,530 3,752,972 275,000
Total current liabilities 14,704,267 4,490,059 19,194,326 341,955
Noncurrent liabilities
Advances from primary government - - - 553,233
Bonds and other obligations, less amounts due within one year 29,103,562 14,309,153 43,412,715 287,824
Net pension liability 43,801,031 3,044,991 46,846,022 -
Total noncurrent liabilities 72,904,593 17,354,144 90,258,737 841,057
Total liabilities 87,608,860 21,844,203 109,453,063 1,183,012
DEFERRED INFLOWS OF RESOURCES
Related to leases 8,223,633 1,490,099 9,713,732 -
Related to other postemployment benefits 852,919 59,294 912,213 -
Total deferred inflows of resources 9,076,552 1,549,393 10,625,945 -
Total liabilities and deferred inflows of resources 96,685,412 23,393,596 120,079,008 1,183,012
NET POSITION
Net investment in capital assets 77,859,834 60,003,475 137,863,309 81,761
Restricted
Highways, streets and bridges 5,196,298 - 5,196,298 -
Housing repairs 31,244 - 31,244 -
Debt service - 846,300 846,300 -
Trinity Health Arena 81,154 - 81,154 -
Law enforcement 23,388 - 23,388 -
Business improvement districts 21,491 - 21,491 -
Opioid settlement 143,581 - 143,581 -
Perpetual care
Expendable 720,295 - 720,295 -
Non-expendable 1,792,814 - 1,792,814 -
Other postemployment benefits 2,411,470 167,643 2,579,113 -
Other purposes 169,433 - 169,433 -
Unrestricted (22,876,950) 7,552,656 (15,324,294) 35,964
Total net position $ 65,574,052 $ 68,570,074 $ 134,144,126 $ 117,725
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, 2024
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 $ 2,722,607 $ 408,586 $ - $ - $ (2,314,021) $ - $ (2,314,021) $ -
Administrative services 1,036,809 804,969 - 10,979 (220,861) - (220,861) -
Financial services 5,792,181 1,122,315 50,000 - (4,619,866) - (4,619,866) -
Public safety 16,242,732 2,831,835 9,611 - (13,401,286) - (13,401,286) -
Public works 4,677,404 1,311,829 7,300 - (3,358,275) - (3,358,275) -
Highways, streets and bridges 7,755,393 278,573 6,474,558 60,903 (941,359) - (941,359) -
Community and economic development 11,004,354 349,316 3,465,208 1,504,781 (5,685,049) - (5,685,049) -
Culture and recreation 8,150,578 3,666,818 1,461,624 2,865,991 (156,145) - (156,145) -
General administration 701,800 167,316 - - (534,484) - (534,484) -
Interest on long-term debt 860,809 - - 902,740 41,931 - 41,931 -
Total governmental activities 58,944,667 10,941,557 11,468,301 5,345,394 (31,189,415) - (31,189,415) -
Business-type activities
Sewer 8,982,844 10,494,925 - 1,955,000 - 3,467,081 3,467,081 -
Water 10,434,898 10,327,739 129,989 3,561,827 - 3,584,657 3,584,657 -
Marina and launch ramp 530,454 316,603 - - - (213,851) (213,851) -
Total business-type activities 19,948,196 21,139,267 129,989 5,516,827 - 6,837,887 6,837,887 -
Total primary government $ 78,892,863 $ 32,080,824 $ 11,598,290 $ 10,862,221 (31,189,415) 6,837,887 (24,351,528) -
Component units
Local Development Finance Authority—SmartZone $ 186,574 $ - $ - $ 200,000 - - - 13,426
Downtown Development Authority 843,430 - 419,947 - - - - (423,483)
Tax Increment Finance Authority 50,000 - - - - - - (50,000)
Brownfield Redevelopment Authorities 795,908 - - - - - - (795,908)
Total component units $ 1,875,912 $ - $ 419,947 $ 200,000 - - - (1,255,965)
General revenues
Property taxes 11,016,837 - 11,016,837 1,682,077
Income taxes 12,767,289 - 12,767,289 -
Cable franchise agreement 312,085 - 312,085 -
Grants and contributions not restricted to specific programs 6,342,222 - 6,342,222 39,157
Unrestricted investment earnings 1,680,189 40,340 1,720,529 3,387
Miscellaneous 738,714 - 738,714 -
Gain on sale of capital asset 3,281,710 - 3,281,710 -
Transfers (729,901) 729,901 - -
Total general revenues and transfers 35,409,145 770,241 36,179,386 1,724,621
Change in net position 4,219,730 7,608,128 11,827,858 468,656
Net position at beginning of year 61,354,322 60,961,946 122,316,268 (350,931)
Net position at end of year $ 65,574,052 $ 68,570,074 $ 134,144,126 $ 117,725
The accompanying notes are an integral part of this statement.
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City of Muskegon
BALANCE SHEET
Governmental Funds
June 30, 2024
Major Street Trinity Health Other Total
General and Trunkline Arena State Grants Governmental Governmental
Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 6,740,783 $ 5,903,266 $ - $ 6,012,265 $ 4,089,160 $ 22,745,474
Assets managed by others - - - - 1,636,146 1,636,146
Receivables
Accounts and loans (net of allowance for uncollectibles) 319,614 3,470 407,080 - 654,442 1,384,606
Property taxes 72,531 - - - - 72,531
Income taxes 1,995,430 - - - - 1,995,430
Leases 3,603,766 - 4,134,184 - 485,682 8,223,632
Due from other governmental units 973,851 875,023 410,471 189,723 1,094,454 3,543,522
Due from other funds 2,836,740 - - - - 2,836,740
Advances to component units 399,412 - - - 51,274 450,686
Prepaid items 292,396 27,912 9,356 - 7,148 336,812
Total assets $ 17,234,523 $ 6,809,671 $ 4,961,091 $ 6,201,988 $ 8,018,306 $ 43,225,579
LIABILITIES
Accounts payable $ 2,603,015 $ 28,262 $ 18,528 $ 459,856 $ 505,022 $ 3,614,683
Accrued liabilities 713,364 17,493 6,305 - 19,154 756,316
Due to other governmental units 4,296 231,589 - - 36 235,921
Due to other funds - - 720,920 - 606,214 1,327,134
Short-term note - - - - 549,995 549,995
Unearned revenues—unused Farmers Market tokens - - - - 58,853 58,853
Unearned revenues—expenditure-driven grants 150,854 - - 5,740,585 - 5,891,439
Total liabilities 3,471,529 277,344 745,753 6,200,441 1,739,274 12,434,341
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues—income taxes 570,000 - - - - 570,000
Related to leases 3,603,766 - 4,134,184 - 485,682 8,223,632
Unavailable revenues—special assessments - 748,530 - - - 748,530
Total deferred inflows of resources 4,173,766 748,530 4,134,184 - 485,682 9,542,162
FUND BALANCES
Nonspendable
Prepaid items 292,396 27,912 9,356 - 7,148 336,812
Long-term advances 399,412 - - - - 399,412
Perpetual care 10,000 - - - 1,782,814 1,792,814
Restricted
Highways, streets, and bridges - 5,755,885 - - 491,893 6,247,778
Housing repairs 31,244 - - - - 31,244
Trinity Health Arena - - 71,798 - - 71,798
Law enforcement - - - - 23,388 23,388
Business improvement districts - - - - 21,491 21,491
Perpetual care - - - - 720,295 720,295
Opioid remediation 143,581 - - - - 143,581
Other purposes - - - - 169,433 169,433
Committed for social equity program 413,107 - - - - 413,107
Assigned for
Capital projects and public improvements 1,800,000 - - 1,547 2,576,888 4,378,435
Subsequent year's budget appropriation of fund balance 1,375,064 - - - - 1,375,064
Unassigned 5,124,424 - - - - 5,124,424
Total fund balances 9,589,228 5,783,797 81,154 1,547 5,793,350 21,249,076
Total liabilities, deferred inflows of
resources, and fund balances $ 17,234,523 $ 6,809,671 $ 4,961,091 $ 6,201,988 $ 8,018,306 $ 43,225,579
The accompanying notes are an integral part of this statement.
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City of Muskegon
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30, 2024
Total fund balance—governmental funds $ 21,249,076
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 $ 186,057,220
Accumulated depreciation (82,406,264) 103,650,956
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 570,000
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 (227,700)
Bonds and notes payable (28,212,880)
Compensated absences (2,752,136)
Net pension liability and related deferred outflows/inflows of resources (36,217,990)
Net other post employment benefits liability and related
outflows/inflows of resources 2,318,719 (65,091,987)
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 6,202,165
Internal balances representing the cumulative difference between
actual costs and amounts charged to business-type activities (1,006,158) 5,196,007
Net position of governmental activities $ 65,574,052
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Governmental Funds
For the year ended June 30, 2024
Major Street Trinity Health Other Total
General and Trunkline Arena State Grants Governmental Governmental
Fund Fund Fund Fund Funds Funds
REVENUES
Taxes $ 22,815,355 $ - $ - $ - $ - $ 22,815,355
Licenses and permits 2,539,771 - - - - 2,539,771
Intergovernmental revenues
Federal 299,779 - 410,471 1,626,157 3,098,185 5,434,592
State 6,559,397 5,225,946 - 2,504,838 1,596,334 15,886,515
Local 50,000 - - - 1,125,391 1,175,391
Charges for services 5,176,014 - 1,892,531 - 659,033 7,727,578
Fines and forfeitures 638,766 - - - - 638,766
Investment earnings and rental income 1,871,474 22,472 106,348 - 106,135 2,106,429
Income from assets managed by others - - - - 131,749 131,749
Other 842,725 14,784 13,193 - 1,145,804 2,016,506
Total revenues 40,793,281 5,263,202 2,422,543 4,130,995 7,862,631 60,472,652
EXPENDITURES
Current
Public representation services 2,745,266 - - - - 2,745,266
Administrative services 1,077,435 - - - - 1,077,435
Financial services 5,978,893 - - - - 5,978,893
Public safety 18,455,784 - - - - 18,455,784
Public works 4,265,845 - - - 152,789 4,418,634
Highways, streets and bridges - 4,008,873 - - 1,814,703 5,823,576
Community and economic development 1,004,954 - - - - 1,004,954
Culture and recreation 3,903,618 - 2,446,772 - 702,521 7,052,911
General administration 673,198 - - - - 673,198
Debt service
Principal 1,163,802 - - - 300,000 1,463,802
Interest and fees 369,469 - - - 602,740 972,209
Capital outlay 683,697 - 40,492 4,176,711 8,878,069 13,778,969
Total expenditures 40,321,961 4,008,873 2,487,264 4,176,711 12,450,822 63,445,631
Excess of revenues over (under) expenditures 471,320 1,254,329 (64,721) (45,716) (4,588,191) (2,972,979)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - - - 3,187,917 3,187,917
Transfers in - - 103,239 178,856 - 282,095
Transfers out (900,000) (178,856) - (133,140) - (1,211,996)
Total other financing sources (uses) (900,000) (178,856) 103,239 45,716 3,187,917 2,258,016
Net change in fund balances (428,680) 1,075,473 38,518 - (1,400,274) (714,963)
Fund balances at beginning of year 10,017,908 4,708,324 42,636 1,547 7,193,624 21,964,039
Fund balances at end of year $ 9,589,228 $ 5,783,797 $ 81,154 $ 1,547 $ 5,793,350 $ 21,249,076
The accompanying notes are an integral part of this statement.
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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, 2024
Net change in fund balances—total governmental funds $ (714,963)
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 $ (5,732,379)
Capital outlay 5,406,380 (325,999)
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 180,000
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.
Repayment of principal on long-term debt 1,463,802
Changes in accrual of interest and amortization of premiums and discounts
Change in accrued interest payable 8,100
Amortization of premiums and discounts 103,300 111,400
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 (176,813)
Change in net pension liability and related deferred outflows/inflows of resources (1,704,294)
Change in net other post employment benefits liability
and related deferred outflows/inflows of resources 4,659,079 2,777,972
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 951,475
Change in internal balances representing the current year difference
between actual costs and amounts charged to business-type activities (223,957) 727,518
Change in net position of governmental activities $ 4,219,730
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF NET POSITION
Proprietary Funds
June 30, 2024
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
ASSETS
Current assets
Cash and investments $ 4,927,280 $ - $ 737,826 $ 5,665,106 $ 4,379,000
Receivables
Accounts 1,779,898 1,894,102 6,400 3,680,400 301,849
Leases - 96,284 - 96,284 -
Due from other governmental units 1,069,645 1,390,454 - 2,460,099 -
Inventories 144,733 442,067 - 586,800 5,427
Prepaid items 61,480 91,420 3,082 155,982 340,541
Total current assets 7,983,036 3,914,327 747,308 12,644,671 5,026,817
Noncurrent assets
Restricted cash and investments 135,000 783,000 - 918,000 -
Leases receivable, less amounts due within one year - 1,393,815 - 1,393,815 -
Advances to component units - - - - 102,548
Capital assets
Land 16,188 103,500 22,562 142,250 65,000
Land improvements - 120,713 1,923,404 2,044,117 301,715
Buildings, improvements and systems 39,923,907 86,303,858 2,535,088 128,762,853 1,668,215
Machinery and equipment 237,141 3,116,030 60,620 3,413,791 11,249,457
Construction in progress 5,680,469 6,529,269 - 12,209,738 -
Less accumulated depreciation (14,205,731) (51,718,864) (3,779,850) (69,704,445) (9,937,160)
Net capital assets 31,651,974 44,454,506 761,824 76,868,304 3,347,227
Net other postemployment benefits asset 38,687 128,956 - 167,643 103,165
Total noncurrent assets 31,825,661 46,760,277 761,824 79,347,762 3,552,940
Total assets 39,808,697 50,674,604 1,509,132 91,992,433 8,579,757
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 95,685 318,950 - 414,635 255,160
Related to other postemployment benefits 13,858 46,192 - 60,050 36,954
Total deferred outflows of resources 109,543 365,142 - 474,685 292,114
Total assets and deferred outflows of resources 39,918,240 51,039,746 1,509,132 92,467,118 8,871,871
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF NET POSITION—CONTINUED
Proprietary Funds
June 30, 2024
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
LIABILITIES
Current liabilities
Accounts payable $ 685,900 $ 1,012,438 $ 29,854 $ 1,728,192 $ 483,872
Accrued liabilities 54,325 68,197 191 122,713 30,517
Due to other governmental units 864,987 2,049 - 867,036 -
Due to other funds - 1,509,606 - 1,509,606 -
Unearned revenues—prepaid fees - - 125,588 125,588 -
Bonds and other obligations, due within one year 506,700 1,138,730 1,100 1,646,530 31,042
Total current liabilities 2,111,912 3,731,020 156,733 5,999,665 545,431
Noncurrent liabilities
Bonds and other obligations, less amounts due within one year 8,198,642 6,106,042 4,469 14,309,153 213,946
Net pension liability 702,690 2,342,301 - 3,044,991 1,873,841
Total noncurrent liabilities 8,901,332 8,448,343 4,469 17,354,144 2,087,787
Total liabilities 11,013,244 12,179,363 161,202 23,353,809 2,633,218
DEFERRED INFLOWS OF RESOURCES
Related to leases - 1,490,099 - 1,490,099 -
Related to other postemployment benefits 13,683 45,611 - 59,294 36,488
Total deferred inflows of resources 13,683 1,535,710 - 1,549,393 36,488
Total liabilities and deferred inflows of resources 11,026,927 13,715,073 161,202 24,903,202 2,669,706
NET POSITION
Net investment in capital assets 22,465,262 36,776,389 761,824 60,003,475 3,347,227
Restricted
Debt service 94,300 752,000 - 846,300 -
Other postemployment benefits 38,687 128,956 - 167,643 103,165
Unrestricted 6,293,064 (332,672) 586,106 6,546,498 2,751,773
Total net position $ 28,891,313 $ 37,324,673 $ 1,347,930 67,563,916 $ 6,202,165
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 1,006,158
Net position of business-type activities $ 68,570,074
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
OPERATING REVENUES
Charges for services $ 10,280,566 $ 10,104,114 $ 315,124 $ 20,699,804 $ 10,189,117
Other 214,359 353,614 1,479 569,452 2,213,310
Total operating revenues 10,494,925 10,457,728 316,603 21,269,256 12,402,427
OPERATING EXPENSES
Administration 730,210 1,524,080 11,454 2,265,744 1,042,428
Insurance premiums and claims - - - - 5,567,896
Wastewater treatment 5,045,658 - - 5,045,658 -
Wastewater maintenance 2,307,966 - - 2,307,966 -
Filtration plant operations - 3,298,505 - 3,298,505 -
Water distribution - 3,464,010 - 3,464,010 -
Other operations - - 415,565 415,565 4,578,423
Depreciation 821,746 2,082,543 106,783 3,011,072 607,195
Total operating expenses 8,905,580 10,369,138 533,802 19,808,520 11,795,942
Operating income (loss) 1,589,345 88,590 (217,199) 1,460,736 606,485
NONOPERATING REVENUES (EXPENSES)
Investment earnings 20,817 19,523 - 40,340 25,412
Gain on sale of capital assets - - - - 119,578
Interest expense (168,588) (155,264) - (323,852) -
Bond issuance costs (4,051) (35,730) - (39,781) -
Total nonoperating revenue (expenses) (151,822) (171,471) - (323,293) 144,990
Income (loss) before capital contributions and transfers 1,437,523 (82,881) (217,199) 1,137,443 751,475
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital grants and contributions 1,955,000 3,561,827 - 5,516,827 -
Transfers in - 129,901 600,000 729,901 200,000
Total capital contributions and transfers 1,955,000 3,691,728 600,000 6,246,728 200,000
Change in net position 3,392,523 3,608,847 382,801 7,384,171 951,475
Net position at beginning of year 25,498,790 33,715,826 965,129 5,250,690
Net position at end of year $ 28,891,313 $ 37,324,673 $ 1,347,930 $ 6,202,165
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 223,957
Change in net position of business-type activities $ 7,608,128
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF CASH FLOWS
Proprietary Funds
For the year ended June 30, 2024
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 $ 10,225,580 $ 10,340,575 $ 358,935 $ 20,925,090 $ 127,128
Receipts from interfund services provided 249,183 107,684 - 356,867 10,189,117
Other receipts - - - - 2,138,930
Payments to suppliers (6,059,403) (3,768,657) (339,003) (10,167,063) (8,297,527)
Payments to employees (981,265) (2,920,056) (34,065) (3,935,386) (2,425,928)
Payments for interfund services used (1,022,886) (1,813,598) (25,635) (2,862,119) (1,218,476)
Net cash provided by (used for) operating activities 2,411,209 1,945,948 (39,768) 4,317,389 513,244
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - 129,901 600,000 729,901 200,000
Interfund borrowing - (902,779) - (902,779) -
Advances to component units - - - - 99,294
Net cash provided by (used for) noncapital financing activities - (772,878) 600,000 (172,878) 299,294
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from long-term debt 2,291,048 926,655 - 3,217,703 -
Issuance costs on long-term debt (4,051) (35,730) - (39,781) -
Capital grants and contributions 1,246,116 3,345,489 - 4,591,605 -
Purchases of capital assets (3,801,553) (4,193,643) - (7,995,196) (1,122,818)
Principal paid on capital debt (282,000) (1,030,000) - (1,312,000) -
Interest paid on capital debt (143,188) (162,364) - (305,552) -
Proceeds from sale of capital assets - - - - 260,107
Net cash provided by (used for) capital and related financing activities (693,628) (1,149,593) - (1,843,221) (862,711)
CASH FLOW FROM INVESTING ACTIVITIES
Investment earnings 20,817 19,523 - 40,340 25,412
Net increase (decrease) in cash and investments 1,738,398 43,000 560,232 2,341,630 (24,761)
Cash and investments at beginning of year 3,323,882 740,000 177,594 4,241,476 4,403,761
Cash and investments at end of year $ 5,062,280 $ 783,000 $ 737,826 $ 6,583,106 $ 4,379,000
Reconciliation of cash and investments to the Statement of Net Position
Cash and investments $ 4,927,280 $ - $ 737,826 $ 5,665,106 $ 4,379,000
Restricted cash and investments 135,000 783,000 - 918,000 -
$ 5,062,280 $ 783,000 $ 737,826 $ 6,583,106 $ 4,379,000
Reconciliation of operating income (loss) to net cash provided by (used for)
operating activities
Operating income (loss) $ 1,589,345 $ 88,590 $ (217,199) $ 1,460,736 $ 606,485
Adjustments to reconcile operating income (loss) to net cash provided by
(used for) operating activities
Depreciation expense 821,746 2,082,543 106,783 3,011,072 607,195
Change in assets and liabilities
Receivables (20,162) (9,469) 41,273 11,642 52,748
Inventories (37,666) (194,200) - (231,866) 12,197
Prepaid items 4,231 (7,505) 877 (2,397) (253,708)
Accounts payable 100,086 191,429 22,043 313,558 (395,072)
Unearned revenues - - 1,059 1,059 -
Accrued liabilities (46,371) (205,440) 5,396 (246,415) (116,601)
Net cash provided by (used for) operating activities $ 2,411,209 $ 1,945,948 $ (39,768) $ 4,317,389 $ 513,244
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF NET POSITION
Fiduciary Funds
June 30, 2024
Other Post-
Employment
Benefits Custodial
Trust Fund Funds
ASSETS
Cash and investments $ - $ 827,281
MERS Total Market Portfolio 26,465,846 -
Accounts receivable - 297,276
Total assets 26,465,846 1,124,557
LIABILITIES
Accounts payable - 14,588
Due to other governmental units - 859,860
Deposits held for others - 250,109
Total liabilities - 1,124,557
NET POSITION
Restricted for individuals, organizations, and other governments $ 26,465,846 $ -
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF CHANGES IN NET POSITION
Fiduciary Funds
For the year ended June 30, 2024
Other Post-
Employment
Benefits Custodial
Trust Fund Funds
ADDITIONS
Tax collections for other governments $ - $ 27,522,654
Other collections for third parties - 5,102,897
Employer contributions 1,858,557 -
Net investment income (loss) 2,498,584 -
Total additions 4,357,141 32,625,551
DEDUCTIONS
Payment of taxes to other governments - 27,522,654
Other payments to third parties - 5,102,897
Benefit payments 1,957,291 -
Administrative expenses 57,590 -
Total deductions 2,014,881 32,625,551
Change in net position 2,342,260 -
Net position at beginning of year 24,123,586 -
Net position at end of year $ 26,465,846 $ -
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF NET POSITION
Discretely Presented Component Units
June 30, 2024
Local
Development Tax Lakeside
Finance Downtown Increment Corridor Brownfield
Authority - Development Finance Improvement Redevelopment
SmartZone Authority Authority Authority Authorities Total
ASSETS
Current assets
Cash and investments $ 70,748 $ 489,868 $ 30,513 $ 29,750 $ - $ 620,879
Accounts receivable - 35,273 - - - 35,273
Total current assets 70,748 525,141 30,513 29,750 - 656,152
Noncurrent assets
Capital assets, net
Nondepreciable 400,000 - - - - 400,000
Depreciable 244,585 - - - - 244,585
Total noncurrent assets 644,585 - - - - 644,585
Total assets 715,333 525,141 30,513 29,750 - 1,300,737
LIABILITIES
Current liabilities
Accounts payable - 62,643 - - - 62,643
Accrued liabilities 2,800 1,512 - - - 4,312
Bonds and other obligations, due
within one year 275,000 - - - - 275,000
Total current liabilities 277,800 64,155 - - - 341,955
Noncurrent liabilities
Advances from primary government - - - - 553,233 553,233
Bonds and other obligations, less
amounts due within one year 287,824 - - - - 287,824
Total noncurrent liabilities 287,824 - - - 553,233 841,057
Total liabilities 565,624 64,155 - - 553,233 1,183,012
NET POSITION
Net investment in capital assets 81,761 - - - - 81,761
Unrestricted 67,948 460,986 30,513 29,750 (553,233) 35,964
Total net position $ 149,709 $ 460,986 $ 30,513 $ 29,750 $ (553,233) $ 117,725
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF ACTIVITIES
Discretely Presented Component Units
For the year ended June 30, 2024
Net (Expense) Revenue and Changes in Net Position
Local
Program Revenue Development Tax Lakeside
Operating Capital Finance Downtown Increment Corridor Brownfield
Grants and Grants and Authority - Development Finance Improvement Redevelopment
Functions/Programs Expenses Contributions Contributions SmartZone Authority Authority Authority Authorities Total
Local Development Finance Authority—SmartZone
Community and economic development $ 172,648 $ - $ - $ (172,648) $ - $ - $ - $ - $ (172,648)
Interest on long-term debt 13,926 - 200,000 186,074 - - - - 186,074
Total Local Development Finance
Authority—SmartZone 186,574 - 200,000 13,426 - - - - 13,426
Downtown Development Authority
Community and economic development 843,430 419,947 - - (423,483) - - - (423,483)
Tax Increment Finance Authority
Community and economic development 50,000 - - - - (50,000) - - (50,000)
Brownfield Redevelopment Authorities
Community and economic development 787,269 - - - - - - (787,269) (787,269)
Interest on long-term debt 8,639 - - - - - - (8,639) (8,639)
Total Brownfield Redevelopment Authorities 795,908 - - - - - - (795,908) (795,908)
Total discretely presented component units $ 1,875,912 $ 419,947 $ 200,000 13,426 (423,483) (50,000) - (795,908) (1,255,965)
General revenues
Property taxes 100,244 481,207 46,950 22,198 1,031,478 1,682,077
Grants and contributions not restricted to specific programs 3,105 - 9,546 - 26,506 39,157
Unrestricted investment income 155 1,867 96 68 1,201 3,387
Total general revenues 103,504 483,074 56,592 22,266 1,059,185 1,724,621
Change in net position 116,930 59,591 6,592 22,266 263,277 468,656
Net position at beginning of year 32,779 401,395 23,921 7,484 (816,510) (350,931)
Net position at end of year $ 149,709 $ 460,986 $ 30,513 $ 29,750 $ (553,233) $ 117,725
The accompanying notes are an integral part of this statement.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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. The discretely presented component units are reported in a separate column in
the government-wide financial statements (see note below for description) to emphasize that they are 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.
Lakeside Corridor Improvement Authority (CIA). The CIA’s purpose is the collection of property tax
incremental revenues and to promote economic growth in the Lakeside Business District corridor. Members
of the CIA are appointed by the City Commission and the Authority is fiscally dependent on the City since
the City Commission approves the CIA budget and must approve any debt issuance. The CIA is presented as
a governmental fund type.
Brownfield Redevelopment Authority (BRA). There are eight 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, the scattered housing site, Sweetwater, and Adelaide Pointe. 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.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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 Trinity Health Muskegon 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, 2024, 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, 2022, the date
of its latest audited financial statements is as follows:
Total assets and deferred outflows of resources $ 3,801,143
Total liabilities and deferred inflows of resources (750,273)
Total net position $ 3,050,870
Total operating income $ 2,857,458
Total operating expenses (2,925,533)
Total nonoperating revenues 917
Capital contributions 95,009
Prior period adjustment (12,323)
Change in net position $ 15,528
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024
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 Fund is used to report resources that are administered through
irrevocable trusts for the benefit of City employees and retirees.
The Custodial Funds are used to remit resources collected for the benefit of others, including property
taxes, escrows, and similar deposits.
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, 2024
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, 2024
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, 2024
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
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 (asset), 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. The City also reports unavailable revenues from one source: leases.
These amounts are long-term leases entered into by the City in which the City is the lessor. These amounts
are recognized as revenue over the term of the lease obligations.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024
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 2023 state taxable value for real/personal property of the City totaled approximately $744,040,000 of
which approximately $46,045,000 was captured by the component units. The ad valorem taxes levied
consisted of 9.788, 2.9364 and .0674 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 2023 financial statements have been reclassified to conform
to the 2024 presentation.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024, actual expenditures exceeded appropriations for:
Final
Budget Actual
General Fund
Public representation services
City attorney $ 440,000 $ 609,788
Major Streets and Trunkline Fund 3,425,937 4,008,873
Trinity Health Arena Fund 2,440,832 2,487,264
These over-expenditures were funded with available fund balance.
Fund Deficits
As of June 30, 2024, the City’s Water Fund had an unrestricted fund net position deficit of $332,672. This
deficit will be eliminated through future operations or an interfund transfer.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE C—DEPOSITS AND INVESTMENTS
As of June 30, 2024, the City had the following investments:
Weighted
Average
Maturity
Fair Value (Months) S&P Percent
Investment Type
Money market funds $ 125,177 1 not rated 0.3 %
Negotiable certificates of deposit 1,218,965 8 not rated 2.5
U.S. agency obligations 9,553,378 209 AA+ 19.6
Local units of government obligations 720,961 9 A to AA 1.5
External investment pool 10,579,459 3 AAA 21.7
MERS investment funds 26,465,846 N/A not rated 54.4
Total fair value $ 48,663,786 100.0 %
Portfolio weighted average maturity N/A
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 5.3%
Government National Mortgage Association obligations 6.9%
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, 2024, $12,839,289 of the City’s bank balance of $13,339,289 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, 2024
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, 2024, restricted
cash and investments in the Sewer and Water Fund of $135,000 and $783,000, 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 Staleys’ 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, 2024
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,
2024 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 $ 3,254 $ - $ - $ - $ - $ 21,000 $ 24,254
Dividends and interest 2,190 67,113 2,550 13,120 736 766 86,475
Realized and unrealized gain
(loss) on investments 8,373 105,144 9,780 50,196 2,818 - 176,311
13,817 172,257 12,330 63,316 3,554 21,766 287,040
Expenses
Grants and scholarships - - 8,745 - - 1,000 9,745
Administration fees 724 8,780 1,826 5,746 257 605 17,938
Revenues over expenses 13,093 163,477 1,759 57,570 3,297 20,161 259,357
Total assets at beginning of year 77,433 1,431,483 101,182 474,017 26,571 3,286 2,113,972
Total assets at end of year 90,526 1,594,960 102,941 531,587 29,868 23,447 2,373,329
Less assets recorded as those
of the Foundation (60,292) - (102,941) (531,587) (18,916) (23,447) (737,183)
Assets reported on the Balance
Sheet/Statement of Net Position $ 30,234 $ 1,594,960 $ - $ - $ 10,952 $ - $ 1,636,146
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, 2024
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, 2024.
Money market funds: Valued at amortized cost, which approximates fair value.
Negotiable certificates of deposit, U.S. agency obligations, and local units of government obligations:
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, 2024
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, 2024:
Assets at Fair Value as of June 30, 2024
Level 1 Level 2 Level 3 Total
Money market funds $ - $ 125,177 $ - $ 125,177
Negotiable certificates of deposit 1,218,965 - - 1,218,965
U.S. agency obligations 9,553,378 - - 9,553,378
Local units of government obligations 720,961 - - 720,961
External investment pools - 10,579,459 - 10,579,459
MERS investment funds - 26,465,846 - 26,465,846
Assets managed by others - 1,636,146 - 1,636,146
Total assets at fair value $ 11,493,304 $ 38,806,628 $ - $ 50,299,932
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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 payments annually of approximately $115,200,
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 payments annually of approximately
$72,900, 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 payments annually of approximately $63,900, 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
approximately $448,000, 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.
Pere Marquette Beach
The City leases the right to use property at Pere Marquette Beach to a third party as part of an agreement with
a term of 5 years and with automatic renewals. The City receives payments annually of approximately
$10,300, increasing by 10 percent each renewal period.
Great Lakes Naval Memorial and Museum
The City leases the right to use property to a third party as part of an agreement with a term of 30 years and
with the option to renew for another 30 years. The City receives payments annually of approximately
$15,000.
For the year ended June 30, 2024, the City recognized $386,724 and $96,938 in lease revenue for
governmental activities and business-type activities, respectively. For the year ended June 30, 2024, the City
also recognized $224,069 and $18,272 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, 2024, the balances of these deferred inflows
of resources were $8,223,633 and $1,490,099 for governmental activities and business-type activities,
respectively.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE F—LEASES RECEIVABLE—Continued
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
2025 $ 364,859 $ 245,026 $ 96,284 $ 24,835
2026 380,611 230,929 82,166 23,411
2027 403,261 216,158 86,403 22,003
2028 476,070 200,201 70,731 20,589
2029 493,274 183,044 54,129 19,587
2030-2034 1,537,785 704,692 314,792 82,549
2035-2039 1,040,365 555,241 398,157 51,918
2040-2044 1,262,612 393,543 387,437 14,574
2045-2049 1,148,699 238,658 - -
2050-2054 768,748 113,937 - -
2055-2059 263,018 26,023 - -
2060-2064 69,609 5,391 - -
2065 14,722 278 - -
$ 8,223,633 $ 3,113,121 $ 1,490,099 $ 259,466
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE G—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024 was as follows:
Balance Balance
July 1, 2023 Additions Deductions June 30, 2024
Governmental activities:
Capital assets, not being depreciated:
Land $ 14,304,382 $ 531,220 $ - $ 14,835,602
Construction in progress 5,903,170 3,149,581 5,353,048 3,699,703
Total capital assets, not being depreciated 20,207,552 3,680,801 5,353,048 18,535,305
Capital assets, being depreciated:
Land improvements 6,269,705 3,182,084 - 9,451,789
Buildings and improvements 61,942,987 220,882 - 62,163,869
Furniture, vehicles and equipment 20,471,925 1,893,404 585,871 21,779,458
Infrastructure 79,593,345 2,905,077 1,992,529 80,505,893
Shared improvements 6,905,293 - - 6,905,293
Total capital assets, being depreciated 175,183,255 8,201,447 2,578,400 180,806,302
Less accumulated depreciation:
Land improvements 2,752,630 178,442 - 2,931,072
Buildings and improvements 21,053,336 1,250,429 - 22,303,765
Furniture, vehicles and equipment 13,977,433 1,186,208 445,340 14,718,301
Infrastructure 44,597,662 3,641,104 1,992,529 46,246,237
Shared improvements 6,060,658 83,391 - 6,144,049
Total accumulated depreciation 88,441,719 6,339,574 2,437,869 92,343,424
Total capital assets, being
depreciated, net 86,741,536 1,861,873 140,531 88,462,878
Capital assets, net $ 106,949,088 $ 5,542,674 $ 5,493,579 $ 106,998,183
Business-type activities:
Capital assets, not being depreciated:
Land $ 142,250 $ - $ - $ 142,250
Construction in progress 8,426,831 8,236,715 4,453,808 12,209,738
Total capital assets, not being depreciated 8,569,081 8,236,715 4,453,808 12,351,988
Capital assets, being depreciated:
Land improvements 2,044,117 - - 2,044,117
Buildings, improvements and systems 124,309,045 4,453,808 - 128,762,853
Machinery and equipment 3,413,791 - - 3,413,791
Total capital assets, being depreciated 129,766,953 4,453,808 - 134,220,761
Less accumulated depreciation:
Land improvements 1,872,307 13,211 - 1,885,518
Buildings, improvements and systems 61,779,622 2,927,785 - 64,707,407
Machinery and equipment 3,041,444 70,076 - 3,111,520
Total accumulated depreciation 66,693,373 3,011,072 - 69,704,445
Total capital assets, being
depreciated, net 63,073,580 1,442,736 - 64,516,316
Capital assets, net $ 71,642,661 $ 9,679,451 $ 4,453,808 $ 76,868,304
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE G—CAPITAL ASSETS—Continued
Depreciation
Depreciation expense was charged to functions as follows:
Governmental activities:
Public representation services $ 10,356
Financial services 14,133
Public safety 414,393
Public works 63,327
Highways, streets and bridges 3,854,105
Community and economic development 143,444
Culture and recreation 1,204,019
General administration 28,602
Internal Service Fund depreciation 607,195
$ 6,339,574
Business-type activities:
Sewer $ 821,746
Water 2,082,543
Marina and Launch Ramp 106,783
$ 3,011,072
Balance Balance
July 1, 2023 Additions Deductions June 30, 2024
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 3,381,025 172,648 - 3,553,673
Total capital assets, being
depreciated, net 417,233 (172,648) - 244,585
Capital assets, net $ 817,233 $ (172,648) $ - $ 644,585
Depreciation expense was charged to economic development.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2024 is as follows:
Due To/From Other Funds:
Receivable Fund Payable Fund Amount
General Fund Trinity Health Arena Fund $ 720,920
General Fund Lead Abatement Fund 216,757
General Fund Healthy Homes Fund 220,568
General Fund Community Development Block Grant Fund 168,889
General Fund Water Fund 1,509,606
$ 2,836,740
The outstanding balances between funds result from the payable funds having negative positions in the City’s
cash and investment pool.
The Brownfield Redevelopment Authorities have also been advanced $553,233 from the City’s governmental
activities as a long-term loan.
Interfund Transfers:
Transfers In Amount Transfers Out Amount
Internal Service Funds $ 200,000 General Fund $ 200,000
State Grants Fund 178,856 Major Streets Fund 178,856
Trinity Health Arena Fund 100,000 General Fund 100,000
Trinity Health Arena Fund 3,239 State Grants Fund 3,239
Water Fund 129,901 State Grants Fund 129,901
Marina and Launch Ramp Fund 600,000 General Fund 600,000
$ 1,211,996 $ 1,211,996
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS—Continued
The General Fund transferred funds to the Trinity Health Arena Fund, Public Service Building Fund,
Engineering Fund, and Marina and Launch Ramp Fund for operation subsidies. The State Grants Fund
transferred funds to the Trinity Health Arena Fund and the Water Fund for various American Rescue Plan Act
projects. 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, 2024.
Balance Balance
July 1, 2023 Additions Deductions June 30, 2024
Governmental activitie s:
Short-term note $ 750,000 $ - $ 200,005 $ 549,995
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 note payable. Interest amounts are at a
variable interest rate of 2.5 percent above the prime rate. Borrowed amounts will be repaid as infill housing
units are sold.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024.
Balance Balance Due Within
July 1, 2023 Additions Deductions June 30, 2024 One Year
Governmental activities:
Public placement debt
General obligation debt $ 27,555,000 $ - $ 1,050,000 $ 26,505,000 $ 1,100,000
Discount (120,850) - (7,200) (113,650) -
Premium 713,327 - 110,500 602,827 -
Direct borrowings and
direct placements
Installment purchase
agreements 1,632,505 - 413,802 1,218,703 425,000
Compensated absences 2,810,224 2,084,959 1,898,059 2,997,124 581,442
Governmental activities
long-term liabilities $ 32,590,206 $ 2,084,959 $ 3,465,161 $ 31,210,004 $ 2,106,442
Business-type activities:
Public placement debt
Revenue obligations $ 14,147,090 $ 2,778,386 $ 1,312,000 $ 15,613,476 $ 1,578,130
Compensated absences 374,068 294,429 326,290 342,207 68,400
Business-type activities
long-term liabilities $ 14,521,158 $ 3,072,815 $ 1,638,290 $ 15,955,683 $ 1,646,530
Component units:
Public placement debt
General obligation debt $ 825,000 $ - $ 265,000 $ 560,000 $ 275,000
Premium 8,373 - 5,549 2,824 -
Component unit long-
term liabilities $ 833,373 $ - $ 270,549 $ 562,824 $ 275,000
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.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE J—LONG-TERM DEBT—Continued
Public Placement Debt—Continued
General obligation debt outstanding as of June 30, 2024 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 $ 2,910,000
2019 Capital Improvement Bonds 19,420,000 1.93% - 3.58% December 2049 18,490,000
2020A Capital Improvement Bonds 4,325,000 2.5% - 5% October 2040 3,310,000
2020B Capital Improvement Bonds 2,055,000 .68% - 3.2% October 2041 1,795,000
$ 26,505,000
Component units:
2012 LDFA Tax Increment Refunding Bonds $ 4,100,000 3% November 2025 $ 560,000
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, 2024 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 $ 1,665,000
2019 Water Supply System Junior Lien Bond 1,600,000 2% October 2025 1,395,000
2019 Sanitary Sewer System Junior Lien Bond 2,875,000 2% October 2033 2,510,000
2020 Water Supply System Junior Lien Bond 3,844,750 2% April 2041 2,995,390
2020 Sanitary Sewer System Junior Lien Bond 3,772,000 2% April 2041 3,240,498
2022B Water Supply System Junior Lien Bond 55,032 1.88% October 2045 55,032
2022 Sanitary Sewer System Junior Lien Bond 2,485,781 1.88% October 2043 2,485,781
2022A Water Supply System Junior Lien Bond 906,437 1.88% October 2045 906,437
2023 Sanitary Sewer System Junior Lien Bond 360,338 1.88% October 2044 360,338
$ 15,613,476
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 39
percent of net revenues through 2025. The total principal and interest remaining to be paid on the bond is
$1,700,541. Principal and interest paid for the year ended June 30, 2024 and total customer net revenues were
$853,988 and $2,190,656, respectively.
During the year ended June 30, 2024, revenue obligations were forgiven and recognized as capital grants and
contributions in the Sewer and Water funds for $1,955,000 and $1,488,238.
The City was in compliance in all material respects with all the revenue bond ordinances at June 30, 2024.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE J—LONG-TERM DEBT—Continued
Direct Borrowings and Direct Placements
Installment Purchase Agreements
The City has entered into an installment agreement for a ladder truck in 2021 and for a pumper truck in 2023.
The installment purchase agreements are secured by the equipment purchases if the City defaults under the
agreements. Installment purchase agreements outstanding as of June 30, 2024 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 $ 632,120
2023 Equipment Installment Loan 761,603 4.40% March 2028 586,583
$ 1,218,703
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, 2024 was approximately $1,101,000. 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, 2024 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
2025 $ 1,100,000 $ 892,982 $ 424,961 $ 31,747 $ 1,578,130 $ 299,576
2026 1,140,000 856,998 436,490 20,218 1,617,000 267,080
2027 1,180,000 817,356 232,082 9,571 792,000 242,935
2028 1,220,000 773,695 125,170 2,306 812,000 227,375
2029 1,270,000 727,804 - - 761,338 211,473
2030-2034 5,255,000 2,992,045 - - 3,875,032 831,580
2035-2039 3,960,000 2,332,030 - - 4,230,000 436,451
2040-2044 4,565,000 1,609,044 - - 1,947,976 58,088
2045-2049 5,530,000 745,038 - - - -
2050 1,285,000 23,001 - - - -
$ 26,505,000 $ 11,769,993 $ 1,218,703 $ 63,842 $ 15,613,476 $ 2,574,558
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE J—LONG-TERM DEBT—Continued
Component Units
Year Ending Public Placement Debt
June 30, Principal Interest
2025 $ 275,000 $ 12,675
2026 285,000 4,275
$ 560,000 $ 16,950
Annual debt service requirements to maturity by type of debt as of June 30, 2024 follow:
Installment
Revenue Purchase
General Obligation Debt Obligations Agreements
Year Ending Governmental Component Business-type Governmental
June 30, Activities Units Activities Activities
2025 $ 1,992,982 $ 287,675 $ 1,877,706 $ 456,708
2026 1,996,998 289,275 1,884,080 456,708
2027 1,997,356 - 1,034,935 241,653
2028 1,993,695 - 1,039,375 127,476
2029 1,997,804 - 972,811 -
2030-2034 8,247,045 - 4,706,612 -
2035-2039 6,292,030 - 4,666,451 -
2040-2044 6,174,044 - 2,006,064 -
2045-2049 6,275,038 - - -
2050 1,308,001 - - -
$ 38,274,993 $ 576,950 $ 18,188,034 $ 1,282,545
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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 2024 and 2023 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, 2024 $ 651,542 $ 147,906 $ 502,570 $ 296,878
June 30, 2023 486,753 738,953 574,164 651,542
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, 2024, the claims liability including incurred but
not reported claims was $45,145. 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 2024 and 2023
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, 2024 $ 35,406 $ 5,460,637 $ 5,450,898 $ 45,145
June 30, 2023 33,172 4,838,292 4,836,058 35,406
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024 with a remaining amount of approximately $17,878,000. The
commitments in the Sewer and Water funds are being financed by long-term debt and the remainder are being
funded with grants and available funds as follows:
Fund Amount
General $ 400,000
Major Street and Trunkline 2,839,000
Local Street 2,405,000
Mercy Health Arena 400,000
Public Improvement 1,440,000
State Grant 1,500,000
Sewer 1,105,000
Water 5,909,000
Marina and Launch Ramp 250,000
Public Service Building 200,000
Equipment 1,430,000
$ 17,878,000
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, 2024, the City has committed $413,107 of fund balance in
the General Fund to this program.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024, the City abated property taxes revenues totaling $109,114 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, 2024, the City abated property taxes revenues totaling $253,520 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, 2024, the City abated property taxes revenues totaling $169,699 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, 2024
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, 2023 valuation date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 338
Inactive employees entitled to but not yet receiving benefits 28
Active employees 47
Total employees covered by MERS 413
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, 2024, the City had a flat-dollar employer contribution to the Plan of $3,652,758
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, 2023, 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, 2024
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Actuarial Assumptions
The total pension liability in the December 31, 2023 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 2023. 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 these 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, 2024
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Changes in the Net Pension Liability
Increase (Decrease)
Net Pension
Total Pension Plan Fiduciary Liability
Liability (a) Position (b) (a)-(b)
Balance at January 1, 2023 $ 132,171,503 $ 83,833,545 $ 48,337,958
Changes for the year
Service cost 493,193 - 493,193
Interest 9,239,502 - 9,239,502
Difference between expected and
actual experience 892,360 - 892,360
Changes in assumptions 906,131 - 906,131
Contributions - employer - 3,845,400 (3,845,400)
Contributions - employee - 185,454 (185,454)
Net investment income (loss) - 9,186,598 (9,186,598)
Administrative expenses - (191,688) 191,688
Benefit payments including refund of
employee contributions (9,953,374) (9,953,374) -
Other changes 2,642 - 2,642
Net changes 1,580,454 3,072,390 (1,491,936)
Balance at December 31, 2023 $ 133,751,957 $ 86,905,935 $ 46,846,022
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 $ 61,070,076 $ 46,846,022 $ 34,859,838
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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, 2024, the City recognized pension expense of $5,556,998. At June 30, 2024, 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 $ 4,553,561 $ -
Contributions subsequent to the
measurement date* 1,825,434 -
Total $ 6,378,995 $ -
*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,
2025.
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
2025 $ 800,436
2026 1,615,429
2027 2,803,758
2028 (666,062)
Payables to the Pension Plan
At June 30, 2024, the City reported a payable of $318,446 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2024.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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 6 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, 2024, City and employee
contributions were $1,589,953 and $691,519, 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, 2024, forfeitures reduced the City’s pension expense by $80,986.
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.
For the year ended June 30, 2024 the OPEB Plan’s valuation date, measurement date, and reporting date were
changed from December 31, 2023 to June 30, 2024 as a result of an accounting policy change. Consequently,
there are 18 months of activity reflected in changes in the net OPEB liability (asset) for both the total OPEB
liability as well as the net OPEB liability (asset) balance, both measured as of June 30, 2024
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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 June 30, 2024 valuation, the following employees were covered by the benefit terms:
Active members 74
Inactive members 16
Retirees and beneficiaries 312
Total employees covered by OPEB Plan 402
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, 2024, the City made payments for postemployment healthcare benefits of $1,624,141.
Net OPEB Liability (Asset)
The City’s net OPEB liability (asset) was measured as of June 30, 2024, and the total OPEB liability used to
calculate the net OPEB liability (asset) was determined by an actuarial valuation as June 30, 2024.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Actuarial Assumptions
The total OPEB liability in the June 30, 2024 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 7.00 percent (including inflation), net of administrative and investment expenses
Healthcare cost trend rates Pre-Medicare: 7.25 percent for one year, then graded down by .25 per year to
an ultimate rate of 4.5 percent
Post-Medicare: 5.5 percent for one year, then graded down by .25 per year to
an ultimate rate of 4.5 percent
Mortality
Mortality rates were as set forth in the Public General 2010 Employee and Healthy Retiree, headcount
weighted, IRS 2024 adjusted 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% 7.00% 4.20% 2.50% 2.70%
Global fixed income 20.0% 4.50% 0.90% 2.50% 0.40%
Private investments 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 OPEB liability was 7.00 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 2022 contribution increasing 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, 2022 the discount rate used to value OPEB
liabilities was 7.00 percent.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Changes in the Net OPEB Liability (Asset)
Increase (Decrease)
Net OPEB
Liability
Total OPEB Plan Fiduciary (Asset)
Liability (a) Position (b) (a)-(b)
Balance at January 1, 2023 $ 28,981,336 $ 23,052,158 $ 5,929,178
Changes for the year
Service cost 75,231 - 75,231
Interest 2,931,154 - 2,931,154
Difference between expected and
actual experience (4,369,955) - (4,369,955)
Changes of assumptions (508,402) - (508,402)
Contributions - employer - 2,862,264 (2,862,264)
Net investment income (loss) - 3,855,821 (3,855,821)
Administrative expenses - (81,766) 81,766
Benefit payments including refund of
employee contributions (3,222,631) (3,222,631) -
Net changes (5,094,603) 3,413,688 (8,508,291)
Balance at June 30, 2024 $ 23,886,733 $ 26,465,846 $ (2,579,113)
Plan fiduciary net postion as a percentage of total OPEB liability 110.80%
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate
The following presents the net OPEB liability (asset) of the City, calculated using the discount rate of 7.00
percent, as well as what the City's net OPEB liability (asset) would be if it were calculated using a discount
rate that is 1-percentage-point lower (6.00 percent) or 1-percentage-point higher (8.00 percent) than the
current rate:
1% Decrease Current Discount 1% Increase
(6.00%) Rate (7.00%) (8.00%)
City's net OPEB liability (asset) $ (328,097) $ (2,579,113) $ (4,479,753)
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rate
The following presents the net OPEB liability (asset) 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 (asset) 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 (asset) $ (4,387,227) $ (2,579,133) $ (461,399)
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 (asset), 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, 2024, the City recognized OPEB expense of $(3,347,119). At June 30, 2024, 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 $ - $ 817,146
Changes in assumptions - 95,067
Net difference between projected
and actual net investment income 923,849 -
Total $ 923,849 $ 912,213
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
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
2025 $ (706,423)
2026 386,339
2027 615,212
2028 (283,492)
Payables to the OPEB Plan
At June 30, 2024, 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, 2024, City and employee contributions were $905,524 and $436,297,
respectively.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
NOTE O—ACCOUNTING CHANGES AND ERROR CORRECTIONS
Correction of an Error in Previously Issued Financial Statements
During the year ended June 30, 2024, the City discovered errors in the calculation of several leases receivable.
The following adjustments were made to correct this error by restating the balances of leases receivable and
deferred inflows as of July 1, 2023. The restatement of these balances has no impact on net position or fund
balance.
General Fund
Leases Receivable Deferred Inflows
Balances as of July 1, 2023, as previously stated $ 3,493,276 $ 3,493,276
Correction of error—ommitted lease agreement 440,230 440,230
Balances as of July 1, 2023, as restated $ 3,933,506 $ 3,933,506
Trinity Health Arena Fund
Leases Receivable Deferred Inflows
Balances as of July 1, 2023, as previously stated $ 4,375,289 $ 4,375,289
Correction of error—incorrect calculation (211,544) (211,544)
Balances as of July 1, 2023, as restated $ 4,163,745 $ 4,163,745
Other Governmental Funds
Leases Receivable Deferred Inflows
Balances as of July 1, 2023, as previously stated $ - $ -
Correction of error—ommitted lease agreement 496,022 496,022
Balances as of July 1, 2023, as restated $ 496,022 $ 496,022
Governmental Activities
Leases Receivable Deferred Inflows
Balances as of July 1, 2023, as previously stated $ 7,868,565 $ 7,868,565
Correction of errors above 724,708 724,708
Balances as of July 1, 2023, as restated $ 8,593,273 $ 8,593,273
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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, 2024
(with comparative actual amounts for the year ended June 30, 2023)
2024 2023
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
REVENUES
Taxes
City income taxes $ 11,250,000 $ 12,600,000 $ 12,243,618 $ (356,382) $ 11,957,105
Property taxes 8,916,349 9,036,284 9,034,793 (1,491) 8,317,400
Excise tax distribution 625,000 655,000 653,283 (1,717) 622,222
Industrial facilities taxes 155,000 180,742 180,742 - 242,192
Payments in lieu of taxes 662,519 662,519 702,919 40,400 666,069
Total taxes 21,608,868 23,134,545 22,815,355 (319,190) 21,804,988
Licenses and permits
Business licenses 45,000 37,000 37,410 410 40,745
Liquor licenses 65,000 71,000 70,052 (948) 60,036
Marihuana facilities licenses 175,000 180,000 180,000 - 141,337
Cable TV fees 352,000 316,000 312,085 (3,915) 349,044
Rental property registration 451,000 562,000 573,965 11,965 520,590
Burial permits 60,000 64,300 62,520 (1,780) 68,240
Building permits 1,000,000 929,500 877,387 (52,113) 1,395,235
Electrical permits 200,000 180,000 175,741 (4,259) 210,651
Plumbing permits 110,000 118,000 122,162 4,162 113,789
Mechanical permits 146,000 125,000 123,991 (1,009) 159,145
Vacant building fees 25,000 5,000 4,458 (542) 15,200
Total licenses and permits 2,629,000 2,587,800 2,539,771 (48,029) 3,074,012
Intergovernmental revenues
Federal grants 401,000 526,600 299,779 (226,821) 182,483
State
Grants 900,000 945,000 1,238,036 293,036 1,440,862
State shared revenue 5,749,318 5,354,191 5,321,361 (32,830) 5,180,344
Total intergovernmental revenues - State 6,649,318 6,299,191 6,559,397 260,206 6,621,206
Local - - 50,000 50,000 50,000
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2024
(with comparative actual amounts for the year ended June 30, 2023)
2024 2023
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Charges for services
Tax administration fees $ 400,000 $ 445,000 $ 445,099 $ 99 $ 411,981
Utility administration fees 310,000 310,000 310,000 - 310,000
Reimbursement for elections 25,000 25,000 181 (24,819) 29,999
Brownfield authority admin fee - 273,673 273,673 - 201,851
Indirect cost reimbursements 1,748,335 1,748,335 1,748,335 - 1,587,749
Site plan review fee 11,000 11,000 6,000 (5,000) 7,400
Sale of cemetery lots 36,000 38,000 31,110 (6,890) 36,881
Police miscellaneous 241,000 208,000 214,797 6,797 118,143
Police impound fees 40,000 40,000 28,410 (11,590) 34,658
Landlord's alert fee 30,000 45,000 41,010 (3,990) 45,407
Fire protection—state property 99,000 99,647 99,647 - 99,233
Zoning fees 17,300 17,300 14,850 (2,450) 14,563
Clerk fees 3,000 37,500 36,098 (1,402) 4,489
Clerk fees—passport fees 65,000 80,000 77,575 (2,425) 68,415
Tax abatement application fees 5,000 5,000 2,772 (2,228) 9,272
Treasurer fees 52,500 81,500 80,812 (688) 84,315
False alarm fees 7,000 7,000 5,511 (1,489) 4,005
Miscellaneous cemetery income 24,000 26,500 25,762 (738) 25,694
Downtown social district 45,000 45,000 37,925 (7,075) 45,450
Fire miscellaneous 21,000 21,000 12,547 (8,453) 21,403
Sanitation stickers 645,000 650,000 681,665 31,665 595,690
Lot cleanup fees 37,500 30,150 27,760 (2,390) 34,480
Special events reimbursements 30,000 40,000 31,394 (8,606) 35,918
Recreation program fees 15,000 55,000 36,677 (18,323) 9,803
Parking 800,000 860,000 898,404 38,404 841,843
Other charges for services 10,000 10,000 8,000 (2,000) 24,000
Total charges for services 4,717,635 5,209,605 5,176,014 (33,591) 4,702,642
Fines and forfeitures
Income tax—penalty and interest 260,000 320,000 315,526 (4,474) 288,786
Late fees on current taxes 20,000 30,000 28,144 (1,856) 20,473
Interest on late invoices 13,400 22,600 22,220 (380) 21,713
Parking fines 170,000 177,500 179,906 2,406 174,945
Court fines 70,000 70,000 77,450 7,450 79,246
Civil infractions 21,500 15,000 15,520 520 18,875
Total fines and forfeitures 554,900 635,100 638,766 3,666 604,038
Investment earnings and rental income
Interest income 325,000 558,000 1,112,306 554,306 901,798
Net increase (decrease) in the fair value of investments 100,000 35,000 175,997 140,997 (428,700)
City right of way rental 7,000 7,000 4,400 (2,600) 4,400
Fire station lease—Central Dispatch 465,000 465,000 331,837 (133,163) 322,925
Parking rentals 88,925 56,800 56,800 - 94,295
McGraft Park rentals 140,000 144,000 133,743 (10,257) 126,633
Other park rentals 47,800 56,408 56,391 (17) 54,040
Total investment earnings and rental income 1,173,725 1,322,208 1,871,474 549,266 1,075,391
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2024
(with comparative actual amounts for the year ended June 30, 2023)
2024 2023
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Other
Police sale and auction proceeds $ 1,100 $ 3,000 $ 2,575 $ (425) $ 1,100
CDBG program reimbursements 269,760 269,760 239,832 (29,928) 375,542
Fisherman's Landing reimbursement 25,000 25,625 25,625 - 28,319
Contributions 75,000 60,000 89,681 29,681 104,882
Contributions—Veteran's Park maintenance 17,000 71,000 70,026 (974) 73,122
Community Foundation for Muskegon County 10,000 11,000 10,979 (21) 10,885
Miscellaneous and sundry 126,000 394,800 404,007 9,207 449,263
Total other 523,860 835,185 842,725 7,540 1,043,113
Total revenues 38,258,306 40,550,234 40,793,281 243,047 39,157,873
EXPENDITURES
Current
Public representation services
City commission 147,376 137,900 139,725 (1,825) 137,289
City promotions and public relations 182,223 167,550 147,899 19,651 123,219
City manager 714,619 964,258 943,118 21,140 546,886
Contributions to outside agencies 574,426 928,426 904,736 23,690 492,375
City attorney 420,000 440,000 609,788 (169,788) 605,869
Total public representation services 2,038,644 2,638,134 2,745,266 (107,132) 1,905,638
Administrative services
City clerk 836,450 830,159 776,960 53,199 842,713
Civil service 325,164 303,641 300,475 3,166 237,094
Total administrative services 1,161,614 1,133,800 1,077,435 56,365 1,079,807
Financial services
Finance administration 752,641 786,100 781,519 4,581 665,136
Assessing 430,000 443,000 443,418 (418) 429,591
Income tax administration 485,142 514,185 491,806 22,379 474,611
Information systems 699,693 780,116 736,693 43,423 656,777
City treasurer 729,654 715,223 674,083 41,140 695,791
Pension administration 2,857,808 2,857,808 2,851,374 6,434 3,167,679
Total financial services 5,954,938 6,096,432 5,978,893 117,539 6,089,585
Public safety
Police department 11,498,377 12,194,264 12,057,971 136,293 11,073,924
Fire department 3,845,375 4,337,733 4,290,087 47,646 3,894,030
Building inspections 2,406,083 2,130,286 2,107,726 22,560 2,830,396
Total public safety 17,749,835 18,662,283 18,455,784 206,499 17,798,350
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2024
(with comparative actual amounts for the year ended June 30, 2023)
2024 2023
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Public works
Street lighting $ 310,000 $ 322,000 $ 319,762 $ 2,238 $ 296,561
Community event support 172,871 89,000 80,382 8,618 121,143
General sanitation 2,570,612 2,590,365 2,716,449 (126,084) 2,558,983
Storm water management 24,250 24,618 10,494 14,124 35,929
City hall maintenance 474,279 562,842 555,665 7,177 493,912
Cemeteries maintenance 598,103 593,521 583,093 10,428 565,457
Total public works 4,150,115 4,182,346 4,265,845 (83,499) 4,071,985
Community and economic development
Planning, zoning and economic development 554,263 797,352 804,954 (7,602) 675,384
Environmental services - - - - 37,831
Edison Landing subsidy - 200,000 200,000 - 200,000
Total community and economic development 554,263 997,352 1,004,954 (7,602) 913,215
Culture and recreation
Parks maintenance 2,633,060 2,895,343 2,928,323 (32,980) 2,640,748
McGraft Park maintenance 117,651 153,075 154,160 (1,085) 206,870
General and inner city recreation programs 340,419 367,318 360,912 6,406 77
Forestry 28,000 35,079 25,254 9,825 64,684
Parking operations 432,617 421,609 397,388 24,221 425,909
Social district 46,528 36,528 37,581 (1,053) 41,097
Total culture and recreation 3,598,275 3,908,952 3,903,618 5,334 3,379,385
General administration
Insurance premiums 810,000 700,000 629,859 70,141 1,003,306
Other - - 43,339 (43,339) (52,517)
Total other governmental functions 810,000 700,000 673,198 26,802 950,789
Debt service
Principal 1,260,428 1,164,000 1,163,802 198 1,022,509
Interest and fees 387,995 376,004 369,469 6,535 377,330
Total debt service 1,648,423 1,540,004 1,533,271 6,733 1,399,839
Capital outlay 582,700 665,276 683,697 (18,421) 5,198,799
Total expenditures 38,248,807 40,524,579 40,321,961 202,618 42,787,392
Excess of revenues over (under) expenditures 9,499 25,655 471,320 445,665 (3,629,519)
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2024
(with comparative actual amounts for the year ended June 30, 2023)
2024 2023
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
OTHER FINANCING SOURCES (USES)
Long-term debt issued $ - $ - $ - $ - $ 761,603
Transfers in 430,000 50,000 - (50,000) 4,251,451
Transfers out (1,430,000) (1,380,000) (900,000) 480,000 (2,227,000)
Total other financing sources (uses) (1,000,000) (1,330,000) (900,000) 430,000 2,786,054
Net change in fund balance $ (990,501) $(1,304,345) (428,680) $ 875,665 (843,465)
Fund balance at beginning of year 10,017,908 10,861,373
Fund balance at end of year $ 9,589,228 $ 10,017,908
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Major Street and Trunkline Fund
For the year ended June 30, 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues - State $ 5,060,000 $ 5,060,000 $ 5,225,946 $ 165,946
Investment earnings - - 22,472 22,472
Other - - 14,784 14,784
Total revenues 5,060,000 5,060,000 5,263,202 203,202
EXPENDITURES
Current
Highways, streets and bridges 3,385,937 3,425,937 4,008,873 (582,936)
Excess of revenues over (under) expenditures 1,674,063 1,634,063 1,254,329 (379,734)
OTHER FINANCING USES
Transfers out (400,000) (400,000) (178,856) 221,144
Net change in fund balance $ 1,274,063 $ 1,234,063 1,075,473 $ (158,590)
Fund balance at beginning of year 4,708,324
Fund balance at end of year $ 5,783,797
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
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BUDGETARY COMPARISON SCHEDULE
Trinity Health Arena Fund
For the year ended June 30, 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues—Federal $ - $ - $ 410,471 $ 410,471
Charges for services 1,804,500 1,956,651 1,892,531 (64,120)
Investment earnings 7,500 15,750 106,348 90,598
Other 10,000 14,000 13,193 (807)
Total revenues 1,822,000 1,986,401 2,422,543 436,142
EXPENDITURES
Current
Culture and recreation 2,146,963 2,400,403 2,446,772 (46,369)
Capital outlay 73,935 40,429 40,492 (63)
Total expenditures 2,220,898 2,440,832 2,487,264 (46,432)
Excess of revenues over (under) expenditures (398,898) (454,431) (64,721) 389,710
OTHER FINANCING SOURCES
Transfers in 400,000 550,000 103,239 (446,761)
Net change in fund balance $ 1,102 $ 95,569 38,518 $ (57,051)
Fund balance at beginning of year 42,636
Fund balance at end of year $ 81,154
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
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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)
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY
Service cost $ 493,193 $ 510,157 $ 529,832 $ 615,293 $ 732,228 $ 806,565 $ 1,018,541 $ 1,130,408 $ 1,194,909 $ 1,190,507
Interest 9,239,502 9,162,662 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 892,360 1,074,817 256,636 2,829,299 1,830,804 3,642,392 1,326,122 (1,697,797) (647,017) -
Changes in assumptions 906,131 1,800,812 4,396,829 2,974,495 4,134,788 - - - 4,779,382 -
Benefit payments, including refunds of employee contributions (9,953,374) (9,852,666) (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 2,642 (1,577,082) - - - (229,967) (4,485,289) - - -
Net change in total pension liability 1,580,454 1,118,700 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 132,171,503 131,052,803 125,918,365 119,926,123 112,728,195 107,675,977 108,324,914 106,964,467 99,966,407 97,366,329
Total pension liability at end of year (a) $ 133,751,957 $ 132,171,503 $ 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 $ 3,845,400 $ 3,896,659 $ 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 185,454 291,821 304,680 374,806 491,814 848,562 687,391 563,898 566,045 564,409
Net investment income (loss) 9,186,598 (10,311,712) 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 (9,953,374) (9,852,666) (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 (191,688) (180,011) (146,581) (173,766) (190,108) (173,509) (173,921) (175,718) (183,599) (193,139)
- - - - -
Net change in plan fiduciary net position 3,072,390 (16,155,909) 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 83,833,545 99,989,454 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) $ 86,905,935 $ 83,833,545 $ 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) $ 46,846,022 $ 48,337,958 $ 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 64.98% 63.43% 76.30% 73.88% 74.21% 73.75% 84.29% 77.93% 74.38% 85.39%
Covered payroll $ 4,096,144 $ 4,200,465 $ 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 1143.66% 1150.78% 674.00% 608.20% 506.16% 450.68% 221.26% 282.59% 300.85% 159.27%
Notes to Schedule
The following were significant changes to actuarial assumptions:
2015 Valuation - The investment rate of return assumption was reduced from 8.25 percent to 8.0 percent, the wage inflation assumption was reduced from 4.5 percent to 3.75 percent, inflation rates changed
from 3.0 - 4.0 percent to 2.5 percent.
2019 Valuation - The investment rate of return assumption was reduced from 8.0 percent to 7.6 percent, the wage inflation assumptioon was reduced from 3.75 percent to 3.0 percent.
2020 Valuation - Mortality rates were changed to the recently issued Pub-2010 mortality general rates as published by the Society of Actuaries along with a change to sex-distinct assumptions.
2021 Valuation - The investment rate of return assumption was reduced from 7.6 percent to 7.25 percent.
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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)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution $ 3,652,758 $ 4,052,695 $ 3,724,080 $ 2,902,032 $ 1,855,248 $ 1,902,696 $ 1,798,140 $ 1,897,158 $ 1,546,440 $ 1,293,996
Contributions in relation to the actuarially
determined contribution 3,652,758 4,052,695 3,724,080 2,902,032 2,777,641 2,218,663 1,964,214 2,276,200 1,753,272 1,293,996
Contribution deficiency (excess) $ - $ - $ - $ - $ (922,393) $ (315,967) $ (166,074) $ (379,042) $ (206,832) $ -
Covered payroll $ 4,340,654 $ 4,200,465 $ 4,608,816 $ 5,408,268 $ 6,110,950 $ 6,561,169 $ 7,645,789 $ 8,460,078 $ 9,108,948 $ 9,171,511
Contributions as percentage of covered
payroll 84.2% 96.5% 80.8% 53.7% 45.5% 33.8% 25.7% 26.9% 19.2% 14.1%
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
Remaining amortization period 15 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 7.00 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
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City of Muskegon
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTHCARE SYSTEM SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET) AND RELATED RATIOS
Last Ten Fiscal Years (Amounts were determined as of June 30, 2024 and as of December 31 of each fiscal year for years prior to 2024)
2024 2022 2021 2020 2019 2018 2017
TOTAL OPEB LIABILITY
Service cost $ 75,231 $ 47,962 $ 142,556 $ 156,214 $ 165,306 $ 178,243 $ 165,423
Interest 2,931,154 1,995,623 1,999,639 2,058,432 2,191,233 2,035,720 1,954,979
Differences between expected and actual experience (4,369,955) (433,044) (2,420,665) (325,146) (2,119,868) (992,432) -
Changes of assumptions (508,402) 1,161,708 (2,771,809) (1,152,266) 6,288,823 2,349,210 -
Benefit payments, including refunds of employee contributions (3,222,631) (1,788,553) (1,710,064) (1,621,453) (1,983,928) (1,118,442) (1,064,376)
Net change in total OPEB liability (5,094,603) 983,696 (4,760,343) (884,219) 4,541,566 2,452,299 1,056,026
Total OPEB liability at beginning of year 28,981,336 27,997,640 32,757,983 33,642,202 29,100,636 26,648,337 25,592,311
Total OPEB liability at end of year (a) $ 23,886,733 $ 28,981,336 $ 27,997,640 $ 32,757,983 $ 33,642,202 $ 29,100,636 $ 26,648,337
PLAN FIDUCIARY NET POSITION
Contributions-employer $ 2,862,264 $ 1,997,928 $ 1,767,843 $ 1,154,926 $ 1,001,447 $ 671,363 $ 736,039
Net investment income (loss) 3,855,821 (2,613,129) 2,574,713 2,210,729 2,660,470 (699,603) 2,110,019
Benefit payments, including refunds or employee contributions (3,222,631) (1,788,553) (1,710,064) (1,621,453) (1,983,928) (1,118,442) (1,064,376)
Administrative expense (81,766) (46,001) (47,967) (42,375) (41,397) (53,927) (52,313)
Net change in plan fiduciary net position 3,413,688 (2,449,755) 2,584,525 1,701,827 1,636,592 (1,200,609) 1,729,369
Plan fiduciary net position at beginning of year 23,052,158 25,501,913 22,917,388 21,215,561 19,578,969 20,779,578 19,050,209
Plan fiduciary net position at end of year (b) $ 26,465,846 $ 23,052,158 $ 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) $ (2,579,113) $ 5,929,178 $ 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 110.80% 79.54% 91.09% 69.96% 63.06% 67.28% 77.98%
Covered payroll Not Available $ 6,711,986 $ 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 Not Available 88.34% 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.
Fiscal year 2024 is the first year presented as of June 30 due to a change in the OPEB Plan reporting year, and as such, the net change in total OPEB liability
and the net change in plan fiduciary net position for this fiscal year each reflect 18 months of activity
See the following page for significant changes to actuarial assumptions.
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City of Muskegon
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTHCARE SYSTEM SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET) AND RELATED RATIOS—CONTINUED
Last Ten Fiscal Years (Amounts were determined as of June 30, 2024 and as of December 31 of each fiscal year for years prior to 2024)
Notes to Schedule—Continued
The following were significant changes to actuarial assumptions
2019 Valuation
Mortality improvement scale updated.
Medical trend rates updated.
Salary scale updated from 3.5 percent to 3.0 percent.
Discount rate changed from 7.75 percent to 6.24 percent.
2020 Valuation
Mortality improvement scale updated.
Medical and dental trend updated.
2021 Valuation
Salary scale updated from 3.0 percent to 0.0 percent.
Mortality improvement scale updated.
Discount rate updated from 6.24 percent to 7.35 percent.
2022 Valuation
Medical trend rates updated.
Discount rate changed from 7.35 percent to 7.0 percent.
2024 valuation
Disability rates implemented
Retirement rates updated
Medical trend updated
Terminated vested members assumed to retire at age 60
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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)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution $ 1,324,414 $ 908,913 $ 1,344,010 $ 2,289,405 $ 2,115,188 $ 1,470,562 $ 956,532 $ 606,506 $ 639,428 $ 659,451
Contributions in relation to the actuarially
determined contribution 1,624,141 1,865,895 650,383 1,206,464 1,233,505 1,260,887 687,642 606,506 639,428 659,451
Contribution deficiency (excess) $ (299,727) $ (956,982) $ 693,627 $ 1,082,941 $ 881,683 $ 209,675 $ 268,890 $ - $ - $ -
Covered payroll Not Available $ 6,711,986 $ 6,978,841 $ 7,848,543 $ 8,952,683 Not Available $ 8,095,840 $ 10,830,000 $ 10,830,000 $ 10,005,000
Contributions as percentage of covered
payroll Not Available 27.8% 9.3% 15.4% 13.8% Not Available 8.5% 5.6% 5.9% 6.6%
Notes to Schedule
Valuation Date:
Actuarially determined contribution rates are calculated as of June 30, 2024
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
Remaining amortization period 6 years
Asset valuation method Equal to market value of assets
Inflation 2.5 percent
Salary increases 0.0 percent
Investment rate of return 7.00 percent (including inflation), net of administrative and investment expenses
Retirement age 55 - 60 years of age
Mortality Mortality rates were as set forth in the Public General 2010 Employee and Healthy Retiree, headcount weighted, IRS 2024 adjusted MP-2021 improvement scale.
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City of Muskegon
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTHCARE SYSTEM SCHEDULE OF INVESTMENT RETURNS
Last Ten Fiscal Years (Amounts were determined as of June 30, 2024 and as of December 31 of each fiscal year for years prior to 2024)
2024 2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return, net of investment expense 16.89% -10.21% 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
Fiscal year 2024 is the first year presented as of June 30 due to a change in the OPEB Plan reporting year, and as such,
the annual money-weighted rate of return, net of investment expense for this fiscal year reflects 18 months of activity
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OTHER SUPPLEMENTAL INFORMATION
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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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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, 2024
Other Other Permanent
Total Other Special Capital Fund -
Governmental Revenue Projects Cemetery
Funds Funds Funds Perpetual Care
ASSETS
Cash and investments $ 4,089,160 $ 553,763 $ 2,684,614 $ 850,783
Assets managed by others 1,636,146 - 41,186 1,594,960
Receivables
Accounts and loans (net of allowance for uncollectibles) 654,442 32,290 616,060 6,092
Leases 485,682 - 485,682 -
Due from other governmental units 1,094,454 216,448 878,006 -
Advances to component units 51,274 - - 51,274
Prepaid items 7,148 7,148 - -
Total assets $ 8,018,306 $ 809,649 $ 4,705,548 $ 2,503,109
LIABILITIES
Accounts payable $ 505,022 $ 24,271 $ 480,751 $ -
Accrued liabilities 19,154 13,172 5,982 -
Due to other governmental units 36 - 36 -
Due to other funds 606,214 - 606,214 -
Short-term draw note 549,995 - 549,995 -
Unearned revenues—unused Farmers Market tokens 58,853 58,853 - -
Total liabilities 1,739,274 96,296 1,642,978 -
DEFERRED INFLOWS OF RESOURCES
Related to leases 485,682 - 485,682 -
FUND BALANCES
Nonspendable
Prepaid items 7,148 7,148 - -
Perpetual care 1,782,814 - - 1,782,814
Restricted
Highways, streets and bridges 491,893 491,893 - -
Law enforcement 23,388 23,388 - -
Business improvement districts 21,491 21,491 - -
Perpetual care 720,295 - - 720,295
Other purposes 169,433 169,433 - -
Assigned for capital projects and public improvements 2,576,888 - 2,576,888 -
Total fund balances 5,793,350 713,353 2,576,888 2,503,109
Total liabilities and fund balances $ 8,018,306 $ 809,649 $ 4,705,548 $ 2,503,109
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City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Other Governmental Funds
For the year ended June 30, 2024
Other Other Permanent
Total Other Special Capital Fund -
Governmental Revenue Projects Cemetery
Funds Funds Funds Perpetual Care
REVENUES
Intergovernmental revenues
Federal $ 3,098,185 $ - $ 3,098,185 $ -
State 1,596,334 1,542,927 53,407 -
Local 1,125,391 92,651 1,032,740 -
Charges for services 659,033 555,877 35,355 67,801
Investment earnings 106,135 3,525 95,792 6,818
Income from assets managed by others 131,749 - 7,592 124,157
Other 1,145,804 121,285 1,024,519 -
Total revenues 7,862,631 2,316,265 5,347,590 198,776
EXPENDITURES
Current
Public works 152,789 152,789 - -
Highways, streets, and bridges 1,814,703 1,814,703 - -
Culture and recreation 702,521 702,521 - -
Debt service
Principal 300,000 - 300,000 -
Interest and fees 602,740 - 602,740 -
Capital outlay 8,878,069 - 8,878,069 -
Total expenditures 12,450,822 2,670,013 9,780,809 -
Excess of revenues over (under) expenditures (4,588,191) (353,748) (4,433,219) 198,776
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 3,187,917 - 3,187,917 -
Net change in fund balances (1,400,274) (353,748) (1,245,302) 198,776
Fund balances at beginning of year 7,193,624 1,067,101 3,822,190 2,304,333
Fund balances at end of year $ 5,793,350 $ 713,353 $ 2,576,888 $ 2,503,109
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City of Muskegon
COMBINING BALANCE SHEET
Other Special Revenue Funds
June 30, 2024
Total Other Farmers
Special Revenue Local Market and Criminal Downtown Lakeshore Tree
Funds Street Kitchen 242 Forfeitures BID BID Replacement
ASSETS
Cash and investments $ 553,763 $ 298,295 $ 197,566 $ 23,388 $ - $ 21,716 $ 12,798
Accounts receivable 32,290 1,126 31,164 - - - -
Due from other governmental units 216,448 216,448 - - - - -
Prepaid items 7,148 7,148 - - - - -
Total assets $ 809,649 $ 523,017 $ 228,730 $ 23,388 $ - $ 21,716 $ 12,798
LIABILITIES
Accounts payable $ 24,271 $ 12,741 $ 10,953 $ - $ - $ 225 $ 352
Accrued liabilities 13,172 11,235 1,937 - - - -
Unearned revenues—unused Farmers Market tokens 58,853 - 58,853 - - - -
Total liabilities 96,296 23,976 71,743 - - 225 352
FUND BALANCES
Nonspendable—prepaid items 7,148 7,148 - - - - -
Restricted
Highways, streets, and bridges 491,893 491,893 - - - - -
Law enforcement 23,388 - - 23,388 - - -
Business improvement districts 21,491 - - - - 21,491 -
Other purposes 169,433 - 156,987 - - - 12,446
Total fund balances 713,353 499,041 156,987 23,388 - 21,491 12,446
Total liabilities and fund balances $ 809,649 $ 523,017 $ 228,730 $ 23,388 $ - $ 21,716 $ 12,798
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City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Other Special Revenue Funds
For the year ended June 30, 2024
Total Other Farmers
Special Revenue Local Market and Criminal Downtown Lakeshore Tree
Funds Street Kitchen 242 Forfeitures BID BID Replacement
REVENUES
Intergovernmental revenues
State $ 1,542,927 $ 1,542,927 $ - $ - $ - $ - $ -
Local 92,651 - 92,651 - - - -
Charges for services 555,877 28,398 527,479 - - - -
Investment earnings 3,525 1,962 1,027 112 229 122 73
Other 121,285 1,750 77,756 - - 34,779 7,000
Total revenues 2,316,265 1,575,037 698,913 112 229 34,901 7,073
EXPENDITURES
Current
Public works 152,789 - - - 105,171 47,618 -
Highways, streets, and bridges 1,814,703 1,814,703 - - - - -
Culture and recreation 702,521 - 685,999 - - - 16,522
Total expenditures 2,670,013 1,814,703 685,999 - 105,171 47,618 16,522
Net change in fund balances (353,748) (239,666) 12,914 112 (104,942) (12,717) (9,449)
Fund balances at beginning of year 1,067,101 738,707 144,073 23,276 104,942 34,208 21,895
Fund balances at end of year $ 713,353 $ 499,041 $ 156,987 $ 23,388 $ - $ 21,491 $ 12,446
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Other Special Revenue Funds
For the year ended June 30, 2024
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 $ 1,500,000 $ 1,542,927 $ 42,927 $ - $ - $ -
Local - - - 92,650 92,651 1
Charges for services 5,000 28,398 23,398 527,769 527,479 (290)
Investment earnings 2,500 1,962 (538) 900 1,027 127
Other - 1,750 1,750 68,581 77,756 9,175
Total revenues 1,507,500 1,575,037 67,537 689,900 698,913 9,013
EXPENDITURES
Current
Highways, streets and bridges 2,078,392 1,814,703 263,689 - - -
Culture and recreation - - - 700,760 685,999 14,761
Total expenditures 2,078,392 1,814,703 263,689 700,760 685,999 14,761
Excess of revenues over (under) expenditures (570,892) (239,666) 331,226 (10,860) 12,914 23,774
OTHER FINANCING SOURCES
Transfers in 400,000 - (400,000) - - -
Net change in fund balances $ (170,892) (239,666) $ (68,774) $ (10,860) 12,914 $ 23,774
Fund balances at beginning of year 738,707 144,073
Fund balances at end of year $ 499,041 $ 156,987
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE─CONTINUED
Other Special Revenue Funds
For the year ended June 30, 2024
Criminal Forfeitures Downtown BID
Final Variance With Final Variance With
Budget Actual Final Budget Budget Actual Final Budget
REVENUES
Fines and forfeitures $ 1,000 $ - $ (1,000) $ - $ - $ -
Investment earnings 100 112 12 - 229 229
Total revenues 1,100 112 (988) - 229 229
EXPENDITURES
Current
Public works - - - 134,900 105,171 29,729
Net change in fund balances $ 1,100 112 $ (988) $ (134,900) (104,942) $ 29,958
Fund balances at beginning of year 23,276 104,942
Fund balances at end of year $ 23,388 $ -
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE─CONTINUED
Other Special Revenue Funds
For the year ended June 30, 2024
Lakeshore BID Tree Replacement
Final Variance with Final Variance with
Budget Actual Final Budget Budget Actual Final Budget
REVENUES
Investment earnings $ 151 $ 122 $ (29) $ - $ 73 $ 73
Other 41,001 34,779 (6,222) 7,000 7,000 -
Total revenues 41,152 34,901 (6,251) 7,000 7,073 73
EXPENDITURES
Current
Public works 45,929 47,618 (1,689) - - -
Culture and recreation - - - 12,009 16,522 (4,513)
Total expenditures 45,929 47,618 (1,689) 12,009 16,522 (4,513)
Excess of revenues over (under) expenditures (4,777) (12,717) (7,940) (5,009) (9,449) (4,440)
OTHER FINANCING SOURCES
Transfers in 3,920 - (3,920) - - -
Net change in fund balances $ (857) (12,717) $ (11,860) $ (5,009) (9,449) $ (4,440)
Fund balances at beginning of year 34,208 21,895
Fund balances at end of year $ 21,491 $ 12,446
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City of Muskegon
COMBINING BALANCE SHEET
Other Capital Projects Funds
June 30, 2024
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 $ 2,684,614 $ 704,214 $ 230,932 $ 1,114,175 $ - $ 370,926 $ - $ 149,959 $ 114,408 $ -
Assets managed by others 41,186 41,186 - - - - - - - -
Receivables
Accounts and loans (net of
allowance for uncollectibles) 616,060 471,555 - 133,381 11,124 - - - - -
Leases 485,682 - - 485,682 - - - - - -
Due from other governmental units 878,006 - - - 300,423 85,756 227,073 - - 264,754
Total assets $ 4,705,548 $ 1,216,955 $ 230,932 $ 1,733,238 $ 311,547 $ 456,682 $ 227,073 $ 149,959 $ 114,408 $ 264,754
LIABILITIES
Accounts payable $ 480,751 $ 380,306 $ - $ - $ 17,639 $ - $ 9,537 $ 29,439 $ - $ 43,830
Accrued liabilities 5,982 - - - 2,994 1,839 779 14 - 356
Due to other governmental units 36 - - - 36 - - - - -
Due to other funds 606,214 - - - 168,889 - 216,757 - - 220,568
Short-term draw note 549,995 549,995 - - - - - - - -
Total liabilities 1,642,978 930,301 - - 189,558 1,839 227,073 29,453 - 264,754
DEFERRED INFLOWS OF RESOURCES
Related to leases 485,682 - - 485,682 - - - - - -
FUND BALANCES
Assigned for capital projects
and public improvements 2,576,888 286,654 230,932 1,247,556 121,989 454,843 - 120,506 114,408 -
Total liabilities and fund balances $ 4,705,548 $ 1,216,955 $ 230,932 $ 1,733,238 $ 311,547 $ 456,682 $ 227,073 $ 149,959 $ 114,408 $ 264,754
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City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Other Capital Projects Funds
For the year ended June 30, 2024
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 $ 3,098,185 $ - $ - $ - $ 918,204 $ 110,259 $ 1,527,518 $ - $ - $ 542,204
State 53,407 - - - - - 53,407 - - -
Local 1,032,740 130,000 - - - - - - 902,740 -
Charges for services 35,355 25,015 - 10,340 - - - - - -
Investment earnings 95,792 5,889 1,100 88,159 - - - 237 407 -
Income from assets managed by others 7,592 7,592 - - - - - - - -
Other 1,024,519 618,305 - 63,548 100,650 - - 242,016 - -
Total revenues 5,347,590 786,801 1,100 162,047 1,018,854 110,259 1,580,925 242,253 903,147 542,204
EXPENDITURES
Debt service
Principal 300,000 - - - - - - - 300,000 -
Interest and fees 602,740 - - - - - - - 602,740 -
Capital outlay 8,878,069 5,289,894 - 100,983 1,048,625 170,126 1,580,925 145,188 124 542,204
Total expenditures 9,780,809 5,289,894 - 100,983 1,048,625 170,126 1,580,925 145,188 902,864 542,204
Excess of revenues over (under) expenditures (4,433,219) (4,503,093) 1,100 61,064 (29,771) (59,867) - 97,065 283 -
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 3,187,917 2,960,684 - - 5,400 221,833 - - - -
Net change in fund balances (1,245,302) (1,542,409) 1,100 61,064 (24,371) 161,966 - 97,065 283 -
Fund balances at beginning of year 3,822,190 1,829,063 229,832 1,186,492 146,360 292,877 - 23,441 114,125 -
Fund balances at end of year $ 2,576,888 $ 286,654 $ 230,932 $ 1,247,556 $ 121,989 $ 454,843 $ - $ 120,506 $ 114,408 $ -
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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.
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City of Muskegon
COMBINING STATEMENT OF NET POSITION
Internal Service Funds
June 30, 2024
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
ASSETS
Current assets
Cash and investments $ 4,379,000 $ 147,122 $ 1,703,092 $ 1,432,464 $ 1,096,322
Accounts receivable 301,849 10,267 8,998 282,584 -
Inventories 5,427 - 5,427 - -
Prepaid items 340,541 3,505 83,387 244,403 9,246
Total current assets 5,026,817 160,894 1,800,904 1,959,451 1,105,568
Noncurrent assets
Advances to component units 102,548 - 51,274 51,274 -
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 11,249,457 51,346 11,103,747 - 94,364
Less accumulated depreciation (9,937,160) (38,643) (8,031,324) - (1,867,193)
Net capital assets 3,347,227 12,703 3,072,423 - 262,101
Net other postemployment benefits asset 103,165 - 38,687 - 64,478
Total noncurrent assets 3,552,940 12,703 3,162,384 51,274 326,579
Total assets 8,579,757 173,597 4,963,288 2,010,725 1,432,147
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 255,160 - 95,685 - 159,475
Related to other postemployment benefits 36,954 - 13,858 - 23,096
Total deferred outflows of resources 292,114 - 109,543 - 182,571
Total assets and deferred outflows of resources 8,871,871 173,597 5,072,831 2,010,725 1,614,718
LIABILITIES
Current liabilities
Accounts payable 483,872 5,267 90,839 342,419 45,347
Accrued liabilities 30,517 7,832 8,291 821 13,573
Bonds and other obligations, due within one year 31,042 11,300 642 1,500 17,600
Total current liabilities 545,431 24,399 99,772 344,740 76,520
Noncurrent liabilities
Bonds and other obligations, less amounts due within one year 213,946 45,094 92,232 6,220 70,400
Net pension liability 1,873,841 - 702,690 - 1,171,151
Total noncurrent liabilities 2,087,787 45,094 794,922 6,220 1,241,551
Total liabilities 2,633,218 69,493 894,694 350,960 1,318,071
DEFERRED INFLOWS OF RESOURCES
Related to other postemployment benefits 36,488 - 13,683 - 22,805
Total liabilities and deferred inflows of resources 2,669,706 69,493 908,377 350,960 1,340,876
NET POSITION
Net investment in capital assets 3,347,227 12,703 3,072,423 - 262,101
Restricted for other postemployment benefits 103,165 - 38,687 - 64,478
Unrestricted 2,751,773 91,401 1,053,344 1,659,765 (52,737)
Total net position $ 6,202,165 $ 104,104 $ 4,164,454 $ 1,659,765 $ 273,842
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City of Muskegon
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET POSITION
Internal Service Funds
For the year ended June 30, 2024
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
OPERATING REVENUES
Charges for services $ 10,189,117 $ 663,044 $ 3,624,320 $ 3,908,866 $ 1,992,887
Other 2,213,310 53,921 84,521 2,074,868 -
Total operating revenues 12,402,427 716,965 3,708,841 5,983,734 1,992,887
OPERATING EXPENSES
Administration 1,042,428 158,865 194,014 49,771 639,778
Insurance premiums and claims 5,567,896 - - 5,567,896 -
Other operations 4,578,423 711,137 2,393,310 75,051 1,398,925
Depreciation 607,195 2,499 579,701 - 24,995
Total operating expenses 11,795,942 872,501 3,167,025 5,692,718 2,063,698
Operating income (loss) 606,485 (155,536) 541,816 291,016 (70,811)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 25,412 446 11,546 7,857 5,563
Gain (loss) on sale of capital assets 119,578 - 119,578 - -
Total nonoperating revenues (expenses) 144,990 446 131,124 7,857 5,563
Income (loss) before transfers 751,475 (155,090) 672,940 298,873 (65,248)
TRANSFERS
Transfers in 200,000 150,000 - - 50,000
Change in net position 951,475 (5,090) 672,940 298,873 (15,248)
Net position at beginning of year 5,250,690 109,194 3,491,514 1,360,892 289,090
Net position at end of year $ 6,202,165 $ 104,104 $ 4,164,454 $ 1,659,765 $ 273,842
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City of Muskegon
COMBINING STATEMENT OF CASH FLOWS
Internal Service Funds
For the year ended June 30, 2024
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 127,128 $ 51,605 $ 75,523 $ - $ -
Receipts from interfund services provided 10,189,117 663,044 3,624,320 3,908,866 1,992,887
Other receipts 2,138,930 - - 2,138,930 -
Payments to suppliers (8,297,527) (224,700) (1,171,582) (6,221,201) (680,044)
Payments to employees (2,425,928) (516,939) (584,245) (62,774) (1,261,970)
Payments for interfund services used (1,218,476) (127,058) (907,500) - (183,918)
Net cash provided by (used for) operating activities 513,244 (154,048) 1,036,516 (236,179) (133,045)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in 200,000 150,000 - - 50,000
Collections on advances to component units 99,294 - 49,647 49,647 -
Net cash provided by (used for) noncapital financing activities 299,294 150,000 49,647 49,647 50,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (1,122,818) - (1,122,818) - -
Proceeds from sale of capital assets 260,107 - 260,107 - -
Net cash provided by (used for) capital and related financing activities (862,711) - (862,711) - -
CASH FLOW FROM INVESTING ACTIVITIES
Investment earnings 25,412 446 11,546 7,857 5,563
Net increase (decrease) in cash and investments (24,761) (3,602) 234,998 (178,675) (77,482)
Cash and investments at beginning of year 4,403,761 150,724 1,468,094 1,611,139 1,173,804
Cash and investments at end of year $ 4,379,000 $ 147,122 $ 1,703,092 $ 1,432,464 $ 1,096,322
Reconciliation of operating income (loss) to net cash provided by (used for)
operating activities
Operating income (loss) $ 606,485 $ (155,536) $ 541,816 $ 291,016 $ (70,811)
Adjustments to reconcile operating income (loss) to net cash provided by
(used for) operating activities
Depreciation expense 607,195 2,499 579,701 - 24,995
Change in assets and liabilities
Receivables 52,748 (2,316) (8,998) 64,062 -
Inventories 12,197 - 12,197 - -
Prepaid items (253,708) (184) (7,123) (244,403) (1,998)
Accounts payable (395,072) (54) (42,002) (345,192) (7,824)
Accrued liabilities (116,601) 1,543 (39,075) (1,662) (77,407)
Net cash provided by (used for) operating activities $ 513,244 $ (154,048) $ 1,036,516 $ (236,179) $ (133,045)
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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 resources that were collected for the benefit of others.
Collector – to account for the collections and disbursement of funds to other entities and individuals.
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.
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City of Muskegon
COMBINING STATEMENT OF NET POSITION
Custodial Funds
June 30, 2024
Total Current Rehab Loan
Custodial Funds Collector Tax Escrow
ASSETS
Cash and investments $ 827,281 $ 826,900 $ - $ 381
Accounts receivable 297,276 297,276 - -
Total assets 1,124,557 1,124,176 - 381
LIABILITIES
Accounts payable 14,588 14,207 - 381
Due to other governmental units 859,860 859,860 - -
Deposits held for others 250,109 250,109 - -
Total liabilities 1,124,557 1,124,176 - 381
NET POSITION
Restricted for individuals, organizations,
and other governments $ - $ - $ - $ -
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City of Muskegon
COMBINING STATEMENT OF CHANGES IN NET POSITION
Custodial Funds
For the year ended June 30, 2024
Total Current Rehab Loan
Custodial Funds Collector Tax Escrow
ADDITIONS
Tax collections for other governments $ 27,522,654 $ 236,945 $ 27,285,709 $ -
Other collections for third parties 5,102,897 5,102,897 - -
Total additions 32,625,551 5,339,842 27,285,709 -
DEDUCTIONS
Payment of taxes to other governments 27,522,654 236,945 27,285,709 -
Other payments to third parties 5,102,897 5,102,897 - -
Total deductions 32,625,551 5,339,842 27,285,709 -
Change in net position - - - -
Net position at beginning of year - - - -
Net position at end of year $ - $ - $ - $ -
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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 and the issuance and
repayment of debt to promote and facilitate economic growth in a sub section of the downtown.
Lakeside Corridor Improvement Authority – to account for the collection of tax increment revenues to facilitate
and promote economic growth in the Lakeside Business District corridor.
Brownfield Redevelopment Authorities – to account for the collection of tax increment revenues for
environmental remediation in designated brownfield areas. Currently there are eight 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.
• Area VII – Sweetwater
• Area VII – Adelaide Pointe
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City of Muskegon
COMBINING BALANCE SHEET
Discretely Presented Component Units
June 30, 2024
Local
Total Discretely Development Lakeside
Presented Finance Downtown Tax Increment Corridor Brownfield
Component Authority - Development Finance Improvement Redevelopment
Units SmartZone Authority Authority Authority Authorities
ASSETS
Cash and investments $ 620,879 $ 70,748 $ 489,868 $ 30,513 $ 29,750 $ -
Accounts receivable 35,273 - 35,273 - - -
Total assets $ 656,152 $ 70,748 $ 525,141 $ 30,513 $ 29,750 $ -
LIABILITIES
Accounts payable $ 62,643 $ - $ 62,643 $ - $ - $ -
Accrued liabilities 1,512 - 1,512 - - -
Advances from primary government 553,233 - - - - 553,233
Total liabilities 617,388 - 64,155 - - 553,233
FUND BALANCES (DEFICITS)
Unassigned 38,764 70,748 460,986 30,513 29,750 (553,233)
Total liabilities and fund
balances (deficits) $ 656,152 $ 70,748 $ 525,141 $ 30,513 $ 29,750 $ -
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City of Muskegon
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
Discretely Presented Component Units
June 30, 2024
Total fund balances (deficits)—governmental funds $ 38,764
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 (3,553,673) 644,585
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 (2,800)
Bonds and notes payable (562,824) (565,624)
Net position of governmental activities $ 117,725
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City of Muskegon
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
Discretely Presented Component Units
For the year ended June 30, 2024
Local
Total Discretely Development Lakeside
Presented Finance Downtown Tax Increment Corridor Brownfield
Component Authority - Development Finance Improvement Redevelopment
Units SmartZone Authority Authority Authority Authorities
REVENUES
Property taxes $ 1,682,077 $ 100,244 $ 481,207 $ 46,950 $ 22,198 $ 1,031,478
Intergovernmental revenues
State 51,907 3,105 12,750 9,546 - 26,506
Local 203,137 200,000 3,137 - - -
Investment earnings 3,387 155 1,867 96 68 1,201
Other 404,060 - 404,060 - - -
Total revenues 2,344,568 303,504 903,021 56,592 22,266 1,059,185
EXPENDITURES
Current
Community and economic development 1,680,699 - 843,430 50,000 - 787,269
Debt service
Principal 265,000 265,000 - - - -
Interest and fees 29,414 20,775 - - - 8,639
Total expenditures 1,975,113 285,775 843,430 50,000 - 795,908
Net change in fund balances (deficits) 369,455 17,729 59,591 6,592 22,266 263,277
Fund balances (deficits) at beginning of year (330,691) 53,019 401,395 23,921 7,484 (816,510)
Fund balances (deficits) at end of year $ 38,764 $ 70,748 $ 460,986 $ 30,513 $ 29,750 $ (553,233)
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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, 2024
Net change in fund balances (deficits)—total governmental funds $ 369,455
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 265,000
Changes in accrual of interest and amortization of premiums and discounts
Change in accrued interest payable $ 1,300
Amortization of premiums 5,549 6,849
Change in net position of governmental activities $ 468,656
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SCHEDULE OF INDEBTEDNESS
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2024
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2023 6/30/2024 Payable
Business-Type Activities Bonds and Loans Payable:
Drinking Water State Revolving 3/2/2004 $ 13,900,000 2.13% 10/01/23 $ 810,000 $ - $ -
Fund 2.13% 10/01/24 825,000 825,000 26,616
2.13% 10/01/25 840,000 840,000 8,925
Type of debt: state loan 2,475,000 1,665,000 35,541
Revenue Pledged: water system net revenues
Drinking Water State Revolving Fund* 8/30/2019 $ 1,600,000 2.00% 10/01/23 70,000 - -
2.00% 10/01/24 70,000 70,000 27,900
Type of debt: state loan 2.00% 10/01/25 70,000 70,000 26,500
Revenue Pledged: water system net revenues 2.00% 10/01/26 75,000 75,000 25,100
Forgiveness: 20% 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 95,000 95,000 1,900
1,465,000 1,395,000 264,000
Sanitary Sewer State Revolving Fund* 8/30/2019 $ 2,875,000 2.00% 10/01/23 125,000 - -
2.00% 10/01/24 125,000 125,000 48,950
Type of debt: state loan 2.00% 10/01/25 130,000 130,000 46,400
Revenue Pledged: sanitary sewer system net revenues 2.00% 10/01/26 130,000 130,000 43,800
Forgiveness: 75% 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% 10/01/36 160,000 160,000 15,000
2.00% 10/01/37 160,000 160,000 11,800
2.00% 10/01/38 165,000 165,000 8,550
2.00% 10/01/39 170,000 170,000 5,200
2.00% 10/01/40 175,000 175,000 1,750
2,635,000 2,510,000 450,400
Drinking Water State Revolving Fund* 9/30/2020 $ 3,844,750 2.00% 04/01/24 150,000 - -
2.00% 04/01/25 150,000 150,000 59,908
Type of debt: state loan 2.00% 04/01/26 155,000 155,000 56,908
Revenue Pledged: water system net revenues 2.00% 04/01/27 155,000 155,000 53,808
Forgiveness: 9% 2.00% 04/01/28 160,000 160,000 50,708
2.00% 04/01/29 165,000 165,000 47,508
2.00% 04/01/30 170,000 170,000 44,208
2.00% 04/01/31 170,000 170,000 40,808
2.00% 04/01/32 175,000 175,000 37,408
2.00% 04/01/33 175,000 175,000 33,908
2.00% 04/01/34 180,000 180,000 30,408
2.00% 04/01/35 180,000 180,000 26,808
2.00% 04/01/36 185,000 185,000 23,208
2.00% 04/01/37 185,000 185,000 19,508
2.00% 04/01/38 190,000 190,000 15,808
2.00% 04/01/39 190,000 190,000 12,008
2.00% 04/01/40 200,000 200,000 8,208
2.00% 04/01/41 210,390 210,390 4,208
3,145,390 2,995,390 565,336
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2024
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2023 6/30/2024 Payable
Business-Type Activities Bonds and Loans Payable—Continued:
Sanitary Sewer State Revolving Fund* 9/30/2020 $ 3,772,000 2.00% 04/01/24 $ 157,000 $ - $ -
2.00% 04/01/25 162,000 162,000 64,810
Type of debt: state loan 2.00% 04/01/26 167,000 167,000 61,570
Revenue Pledged: sanitary sewer system net revenues 2.00% 04/01/27 167,000 167,000 58,230
Forgiveness: 20% 2.00% 04/01/28 172,000 172,000 54,890
2.00% 04/01/29 176,000 176,000 51,450
2.00% 04/01/30 181,000 181,000 47,930
2.00% 04/01/31 181,000 181,000 44,310
2.00% 04/01/32 186,000 186,000 40,690
2.00% 04/01/33 186,000 186,000 36,970
2.00% 04/01/34 191,000 191,000 33,250
2.00% 04/01/35 196,000 196,000 29,430
2.00% 04/01/36 201,000 201,000 25,510
2.00% 04/01/37 206,000 206,000 21,490
2.00% 04/01/38 211,000 211,000 17,370
2.00% 04/01/39 216,000 216,000 13,150
2.00% 04/01/40 221,000 221,000 8,830
2.00% 04/01/41 220,498 220,498 4,410
3,397,498 3,240,498 614,290
Drinking Water State Revolving Fund* 9/30/2022 $ 55,032 1.875% 10/01/24 - - 1,032
1.875% 10/01/25 - - 1,032
Type of debt: state loan 1.875% 10/01/26 10,000 10,000 1,032
Revenue Pledged: water system net revenues 1.875% 10/01/27 10,000 10,000 844
Forgiveness: 92.5% 1.875% 10/01/28 10,000 10,000 657
1.875% 10/01/29 5,431 10,000 469
1.875% 10/01/30 - 10,000 282
1.875% 10/01/31 - 5,032 94
35,431 55,032 5,442
Sanitary Sewer State Revolving Fund* 9/30/2022 $ 2,485,781 1.875% 10/01/24 118,000 - -
1.875% 10/01/25 120,000 118,000 46,608
Type of debt: state loan 1.875% 10/01/26 120,000 120,000 44,396
Revenue Pledged: sanitary sewer system net revenues 1.875% 10/01/27 125,000 120,000 42,146
Forgiveness: 20% 1.875% 10/01/28 125,000 125,000 39,896
1.875% 10/01/29 130,000 125,000 37,552
1.875% 10/01/30 130,000 130,000 35,208
1.875% 10/01/31 125,771 130,000 32,771
1.875% 10/01/32 - 135,000 30,333
1.875% 10/01/33 - 135,000 27,802
1.875% 10/01/34 - 140,000 25,271
1.875% 10/01/35 - 140,000 22,646
1.875% 10/01/36 - 145,000 20,021
1.875% 10/01/37 - 150,000 17,302
1.875% 10/01/38 - 150,000 14,490
1.875% 10/01/39 - 155,000 11,677
1.875% 10/01/40 - 155,000 8,771
1.875% 10/01/41 - 160,000 5,865
1.875% 10/01/42 - 152,781 2,865
993,771 2,485,781 465,620
Drinking Water State Revolving Fund* 9/8/2023 $ 906,437 1.875% 10/01/24 - 48,130 16,996
1.875% 10/01/25 - 50,000 16,093
Type of debt: state loan 1.875% 10/01/26 - 50,000 15,156
Revenue Pledged: water system net revenues 1.875% 10/01/27 - 50,000 14,218
Forgiveness: 49% 1.875% 10/01/28 - 50,000 13,281
1.875% 10/01/29 - 50,000 12,343
1.875% 10/01/30 - 50,000 11,406
1.875% 10/01/31 - 55,000 10,468
1.875% 10/01/32 - 55,000 9,437
1.875% 10/01/33 - 55,000 8,406
1.875% 10/01/34 - 60,000 7,375
1.875% 10/01/35 - 60,000 6,250
1.875% 10/01/36 - 60,000 5,125
1.875% 10/01/37 - 60,000 4,000
1.875% 10/01/38 - 60,000 2,875
1.875% 10/01/39 - 65,000 1,750
1.875% 10/01/40 - 28,307 531
- 906,437 155,710
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2024
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2023 6/30/2024 Payable
Business-Type Activities Bonds and Loans Payable—Continued:
Sanitary Sewer State Revolving Fund* 9/8/2023 $ 360,338 1.875% 10/01/24 $ - $ 80,000 $ 6,756
1.875% 10/01/25 - 85,000 5,256
Type of debt: state loan 1.875% 10/01/26 - 85,000 3,663
Revenue Pledged: sanitary sewer system net revenues 1.875% 10/01/27 - 85,000 2,069
Forgiveness: 50% 1.875% 10/01/28 - 25,338 475
- 360,338 18,219
TOTAL BUSINESS TYPE ACTIVITIES BONDS AND LOAN PAYABLE: $ 14,147,090 $ 15,613,476 $ 2,574,558
*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 $ 4,535,000 3.00% 10/01/23 $ 300,000 $ - $ -
($107,903 unamortized premium) 3.00% 10/01/24 320,000 320,000 110,000
4.00% 10/01/25 325,000 325,000 97,100
Type of debt: limited general obligation bonds 4.00% 10/01/26 325,000 325,000 84,100
Revenue pledged: general revenues 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
3,210,000 2,910,000 523,200
Capital Improvement Bonds of 2019 10/9/2019 $ 19,420,000 1.88% 10/01/23 300,000 - -
Convention Center 1.93% 10/01/24 320,000 320,000 596,645
($113,650 unamortized discount) 2.00% 10/01/25 340,000 340,000 589,875
2.10% 10/01/26 360,000 360,000 582,273
Type of debt: limited general obligation bonds 2.24% 10/01/27 380,000 380,000 573,795
Revenue Pledged: excise tax on hotel rooms levied by the 2.34% 10/01/28 405,000 405,000 564,429
County of Muskegon pursuant to Act 263 2.43% 10/01/29 430,000 430,000 553,918
2.60% 10/01/30 455,000 455,000 542,412
2.60% 10/01/31 480,000 480,000 530,066
2.68% 10/01/32 510,000 510,000 516,544
2.78% 10/01/33 540,000 540,000 501,815
2.83% 10/01/34 570,000 570,000 485,822
2.93% 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
3.30% 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
3.48% 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
18,790,000 18,490,000 10,144,830
Capital Improvement Bonds of 2020 11/12/2020 $ 4,325,000 4.00% 10/01/23 360,000 - -
Series 2020A 4.00% 10/01/24 370,000 370,000 142,300
($494,924 unamortized premium) 4.00% 10/01/25 385,000 385,000 127,200
4.00% 10/01/26 405,000 405,000 109,375
Type of debt: limited general obligation bonds 5.00% 10/01/27 420,000 420,000 88,750
Revenue pledged: general revenues 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
5.00% 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
3,670,000 3,310,000 642,125
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2024
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2023 6/30/2024 Payable
Governmental Activities Bonds and Loan Payable—Continued:
Capital Improvement Bonds of 2020 11/12/2020 $ 2,055,000 0.68% 10/01/23 $ 90,000 $ - $ -
Series 2020B 0.68% 10/01/24 90,000 90,000 44,038
1.35% 10/01/25 90,000 90,000 42,823
Type of debt: limited general obligation bonds 1.35% 10/01/26 90,000 90,000 41,608
Revenue pledged: general revenues 1.35% 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
2.00% 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
2.60% 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
1,885,000 1,795,000 459,838
Installment Purchase Agreement of 2021 9/15/2021 $ 1,370,873 1.78% 09/25/23 273,023 - -
(fire tower ladder truck) 1.78% 09/25/24 277,860 277,860 8,880
1.78% 09/25/25 282,784 282,784 3,956
Type of debt: installment purchase agreements 1.78% 09/25/26 71,475 71,476 210
Revenue pledged: general revenues 905,142 632,120 13,046
Installment Purchase Agreement of 2023 3/20/2023 $ 761,603 4.40% 04/20/24 140,780 - -
(fire pumper truck) 4.40% 04/20/25 147,101 147,101 22,867
4.40% 04/20/26 153,706 153,706 16,262
Type of debt: installment purchase agreements 4.40% 04/20/27 160,607 160,607 9,361
Revenue pledged: general revenues 4.40% 04/20/28 125,169 125,169 2,306
727,363 586,583 50,796
$ 29,187,505 $ 27,723,703 $ 11,833,835
TOTAL GOVERNMENTAL ACTIVITIES BONDS AND LOANS PAYABLE
$ 43,334,595 $ 43,337,179 $ 14,408,393
TOTAL PRIMARY GOVERNMENT BONDS AND LOANS PAYABLE
Discretely Presented Component Unit Bonds and Loans Payable:
Local Development Finance Authority 3/20/2012 $ 4,100,000 3.00% 11/01/23 $ 265,000 $ - $ -
Smartzone Refunding Bonds 3.00% 11/01/24 275,000 275,000 12,675
($2,824 unamortized premium) 3.00% 11/01/25 285,000 285,000 4,275
Type of debt: limited general obligation bonds 825,000 560,000 16,950
Revenue pledged: LDFA tax increments, general revenues
TOTAL DISCRETELY PRESENTED COMPONENT UNIT BONDS AND LOANS PAYABLE $ 825,000 $ 560,000 $ 16,950
TOTAL REPORTING ENTITY BONDS AND LOANS PAYABLE $ 44,159,595 $ 43,897,179 $ 14,425,343
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Statistical Section
This part of the City of Muskegon’s Annual Comprehensive 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. 136
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting 141
the City’s ability to generate its property and sales taxes.
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. 148
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. 152
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. 154
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
135
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City of Muskegon
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2015 2016 2017 2018 (a) 2019 2020 2021 2022 2023 2024
Governmental Activities
Net Investment in Capital Assets $ 63,514,691 $ 64,326,891 $ 62,520,466 $ 61,267,518 $ 66,734,006 $ 70,274,679 $ 72,200,515 $ 75,201,511 $ 77,169,106 $ 77,859,834
Restricted 4,807,531 4,140,342 3,777,410 6,138,596 5,519,207 4,459,799 5,003,269 5,845,255 7,228,272 10,591,168
Unrestricted 491,914 (4,142,119) (5,566,349) (8,350,634) (14,355,143) (28,084,776) (29,065,065) (22,938,317) (23,043,056) (22,876,950)
Total Governmental Net Position $ 68,814,136 $ 64,325,114 $ 60,731,527 $ 59,055,480 $ 57,898,070 $ 46,649,702 $ 48,138,719 $ 58,108,449 $ 61,354,322 $ 65,574,052
Business-type Activities
Net Investment in Capital Assets $ 39,231,223 $ 39,013,529 $ 38,114,686 $ 38,549,547 $ 41,741,666 $ 44,543,391 $ 54,257,461 $ 54,668,925 $ 57,495,571 $ 60,003,475
Restricted 599,500 599,500 599,500 599,500 599,500 599,500 822,000 822,000 822,000 1,013,943
Unrestricted 6,423,540 5,762,272 6,382,906 6,041,091 2,424,616 (2,353,801) (873,805) 424,949 2,644,375 7,552,656
Total Business-type Activities Net Position $ 46,254,263 $ 45,375,301 $ 45,097,092 $ 45,190,138 $ 44,765,782 $ 42,789,090 $ 54,205,656 $ 55,915,874 $ 60,961,946 $ 68,570,074
Primary Government
Net Investment in Capital Assets $ 102,745,914 $ 103,340,420 $ 100,635,152 $ 99,817,065 $ 108,475,672 $ 114,818,070 $ 126,457,976 $ 129,870,436 $ 134,664,677 $ 137,863,309
Restricted 5,407,031 4,739,842 4,376,910 6,738,096 6,118,707 5,059,299 5,825,269 6,667,255 8,050,272 11,605,111
Unrestricted 6,915,454 1,620,153 816,557 (2,309,543) (11,930,527) (30,438,577) (29,938,870) (22,513,368) (20,398,681) (15,324,294)
Total Primary Government Net Position $ 115,068,399 $ 109,700,415 $ 105,828,619 $ 104,245,618 $ 102,663,852 $ 89,438,792 $ 102,344,375 $ 114,024,323 $ 122,316,268 $ 134,144,126
(a) 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 annual comprehensive financial reports for
the relevant year.
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City of Muskegon
CHANGES IN NET POSITION
Last Ten Fiscal Years
2015 2016 2017 2018 (a) 2019 2020 2021 2022 2023 2024
EXPENSES
Governmental Activities
Public representation $ 939,907 $ 1,107,551 $ 1,113,897 $ 1,347,618 $ 1,336,014 $ 1,501,079 $ 1,603,410 $ 1,715,050 $ 1,977,993 $ 2,722,607
Administrative services 614,757 663,077 679,139 507,275 800,887 962,981 826,344 913,923 1,094,528 1,036,809
Financial services 2,547,766 2,331,236 2,483,519 1,995,426 2,700,775 3,007,018 5,039,787 5,473,498 6,145,566 5,792,181
Public safety 14,243,233 17,118,742 16,910,473 12,404,126 20,433,642 25,982,246 18,249,379 13,387,378 18,908,078 16,242,732
Public works 3,183,627 3,109,454 3,551,230 3,471,618 4,438,358 4,581,526 4,025,982 4,687,660 4,561,496 4,677,404
Highways, streets and bridges 7,165,703 7,251,882 6,996,540 6,917,260 7,185,642 7,593,019 6,862,862 7,308,858 7,480,486 7,755,393
Community and economic development 2,712,131 5,223,431 3,738,566 5,015,160 2,890,216 5,359,282 4,999,907 9,857,082 13,217,161 11,004,354
Culture and recreation 1,806,790 3,551,692 3,918,814 3,994,582 4,541,739 5,269,578 4,507,120 6,588,542 7,869,866 8,150,578
General administration 389,248 326,452 301,287 376,112 302,582 389,863 404,303 511,323 977,506 701,800
Interest on long-term debt 271,607 248,223 172,591 165,023 151,304 732,065 1,112,166 881,204 866,450 860,809
Total Governmental Activities Expenses 33,874,769 40,931,740 39,866,056 36,194,200 44,781,159 55,378,657 47,631,260 51,324,518 63,099,130 58,944,667
Business-type Activities
Water 6,047,244 6,750,826 7,206,564 7,090,770 7,752,703 8,437,862 8,612,574 9,261,276 10,758,625 10,434,898
Sewer 8,460,509 8,669,469 8,876,690 8,093,752 9,119,941 9,902,515 8,084,729 8,153,673 8,608,922 8,982,844
Marina and launch ramp 305,990 327,832 336,912 377,614 430,431 529,007 515,025 461,504 490,079 530,454
Total Business-type Activities Expenses 14,813,743 15,748,127 16,420,166 15,562,136 17,303,075 18,869,384 17,212,328 17,876,453 19,857,626 19,948,196
Total Primary Government Expenses 48,688,512 56,679,867 56,286,222 51,756,336 62,084,234 74,248,041 64,843,588 69,200,971 82,956,756 78,892,863
PROGRAM REVENUES
Governmental Activities
Charges for Services
Public representation 188,638 226,559 228,767 232,736 250,931 253,511 280,395 324,314 367,723 408,586
Administrative services 415,308 474,737 572,739 539,178 604,290 538,791 504,281 715,421 697,070 804,969
Financial services 823,547 925,474 895,924 903,322 921,748 913,968 988,501 1,085,220 1,129,918 1,122,315
Public safety 1,218,644 1,248,911 1,824,114 2,794,347 2,292,158 2,290,640 2,207,996 2,680,675 3,270,826 2,831,835
Public works 571,426 379,877 646,876 743,110 691,312 835,149 828,098 854,793 1,361,232 1,311,829
Highways, streets and bridges 258,475 234,861 256,190 188,248 191,883 193,267 187,478 522,779 243,319 278,573
Community and economic development 576,863 444,632 706,195 348,933 786,120 769,860 912,247 498,766 609,408 349,316
Culture and recreation 368,168 1,229,067 1,463,839 1,651,304 1,853,547 2,124,968 1,976,029 4,389,524 3,624,178 3,666,818
General administration 48,764 52,512 37,892 38,549 40,400 59,537 65,592 76,182 89,072 167,316
Operating grants and contributions 5,071,239 5,330,825 5,208,818 6,478,526 6,892,530 7,398,202 9,839,245 11,024,058 12,340,614 11,468,301
Capital grants and contributions 3,496,623 3,804,656 862,074 2,305,620 4,015,097 4,064,216 2,901,176 2,815,119 3,801,190 5,345,394
Total Governmental Program Revenues 13,037,695 14,352,111 12,703,428 16,223,873 18,540,016 19,442,109 20,691,038 24,986,851 27,534,550 27,755,252
Business-type Activities
Water 6,375,869 7,485,013 7,430,314 7,445,669 7,946,983 8,316,552 8,752,570 8,903,549 10,311,141 10,327,739
Sewer 6,363,808 6,305,554 7,620,208 8,217,497 8,098,828 8,397,838 9,298,156 10,298,642 10,177,369 10,494,925
Marina and launch ramp 255,638 287,547 278,753 325,917 298,312 74,659 178,706 292,416 329,518 316,603
Operating grants and contributions - - 2,436 42,531 510,533 94,462 - 103,208 427,075 129,989
Capital grants and contributions 474,681 765,363 784,969 - - - 10,354,544 - 2,289,819 5,516,827
Total Business-type program revenues 13,469,996 14,843,477 16,116,680 16,031,614 16,854,656 16,883,511 28,583,976 19,597,815 23,534,922 26,786,083
Total Primary Government program revenues 26,507,691 29,195,588 28,820,108 32,255,487 35,394,672 36,325,620 49,275,014 44,584,666 51,069,472 54,541,335
NET (EXPENSE) REVENUE
Governmental Activities (20,837,074) (26,579,629) (27,162,628) (19,970,327) (26,241,143) (35,936,548) (26,940,222) (26,337,667) (35,564,580) (31,189,415)
Business-type Activities (1,343,747) (904,650) (303,486) 469,478 (448,419) (1,985,873) 11,371,648 1,721,362 3,677,296 6,837,887
Total Primary Government net expense (22,180,821) (27,484,279) (27,466,114) (19,500,849) (26,689,562) (37,922,421) (15,568,574) (24,616,305) (31,887,284) (24,351,528)
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City of Muskegon
CHANGES IN NET POSITION
Last Ten Fiscal Years
2015 2016 2017 2018 (a) 2019 2020 2021 2022 2023 2024
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental Activities
Property taxes $ 7,894,189 $ 8,366,212 $ 8,389,243 $ 8,450,103 $ 8,230,573 $ 8,466,886 $ 8,813,155 $ 9,182,184 $ 10,259,863 $ 11,016,837
Income taxes 8,478,231 8,386,775 8,707,279 8,995,294 8,939,887 9,437,451 9,609,218 10,020,370 12,196,364 12,767,289
Franchise fees 369,965 372,117 378,955 368,495 380,343 361,405 374,219 369,420 349,044 312,085
Grants and contributions not restricted for specific programs 3,989,178 4,051,050 4,630,111 4,955,168 5,102,602 5,276,036 6,427,138 15,303,423 13,168,368 6,342,222
Unrestricted investment earnings 99,733 189,408 106,653 92,771 546,533 568,408 229,177 (644,067) 765,542 1,680,189
Miscellaneous 805,432 626,014 512,738 545,536 550,381 577,677 370,268 918,179 688,390 738,714
Gain on sale of capital asset 20,302 99,031 844,062 712,415 1,333,414 317 2,641,064 1,122,888 2,724,195 3,281,710
Transfers - - - - - - (35,000) 35,000 (1,341,313) (729,901)
Total Governmental Program Revenues 21,657,030 22,090,607 23,569,041 24,119,782 25,083,733 24,688,180 28,429,239 36,307,397 38,810,453 35,409,145
Business-type Activities
Unrestricted investment earnings 29,879 25,688 25,277 28,550 24,063 9,181 9,918 23,856 27,463 40,340
Transfers - - - - - - 35,000 (35,000) 1,341,313 729,901
Total Business-type program revenues 29,879 25,688 25,277 28,550 24,063 9,181 44,918 (11,144) 1,368,776 770,241
Total Primary Government program revenues 21,686,909 22,116,295 23,594,318 24,148,332 25,107,796 24,697,361 28,474,157 36,296,253 40,179,229 36,179,386
CHANGE IN NET POSITION
Governmental Activities 819,956 (4,489,022) (3,593,587) 4,149,455 (1,157,410) (11,248,368) 1,489,017 9,969,730 3,245,873 4,219,730
Business-type Activities (1,313,868) (878,962) (278,209) 498,028 (424,356) (1,976,692) 11,416,566 1,710,218 5,046,072 7,608,128
Total Primary Government $ (493,912) $ (5,367,984) $ (3,871,796) $ 4,647,483 $ (1,581,766) $ (13,225,060) $ 12,905,583 $ 11,679,948 $ 8,291,945 $ 11,827,858
(a) 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 annual comprehensive financial reports for the relevant year.
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City of Muskegon
FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General fund
Nonspendable $ 220,178 $ 232,332 $ 209,353 $ 222,458 $ 241,684 $ 280,986 $ 269,920 $ 881,961 $ 873,226 $ 701,808
Restricted - - - - - - 66,965 8,701 201,500 174,825
Committed - - - - - - 39,000 189,037 295,113 413,107
Assigned 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,800,000 2,790,501 3,175,064
Unassigned 5,883,318 6,098,977 6,148,292 6,469,108 6,563,511 5,920,869 9,121,955 7,981,674 5,857,568 5,124,424
Total general fund $ 7,803,496 $ 8,031,309 $ 8,057,645 $ 8,391,566 $ 8,505,195 $ 7,901,855 $ 11,197,840 $ 10,861,373 $ 10,017,908 $ 9,589,228
All other governmental funds
Nonspendable $ 2,073,747 $ 1,597,371 $ 1,716,825 $ 1,589,699 $ 1,624,737 $ 1,663,979 $ 1,709,000 $ 1,737,125 $ 1,749,272 $ 1,827,230
Restricted 3,159,130 2,995,610 2,726,754 5,130,188 4,621,126 3,842,461 4,397,502 5,170,662 6,373,122 7,254,183
Assigned 2,146,050 1,373,669 3,510,747 2,619,342 1,823,959 9,764,600 1,907,590 2,195,895 3,823,737 2,578,435
Unassigned - - - - - (1,601,331) (2,919,404) - - -
Total all other governmental funds $ 7,378,927 $ 5,966,650 $ 7,954,326 $ 9,339,229 $ 8,069,822 $ 13,669,709 $ 5,094,688 $ 9,103,682 $ 11,946,131 $ 11,659,848
SOURCE: The information in these schedules
(unless otherwise noted) is derived from the annual
comprehensive financial reports for the relevant
year.
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City of Muskegon
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes $ 15,830,137 $ 16,178,761 $ 16,667,272 $ 16,877,055 $ 16,582,030 $ 17,253,857 $ 17,700,658 $ 18,795,646 $ 21,804,988 $ 22,815,355
Intergovernmental 12,301,594 11,711,788 10,743,434 13,488,014 15,776,333 16,777,402 18,131,093 28,487,691 28,839,074 22,496,498
Charges for services 2,468,889 3,468,938 3,918,217 4,229,797 4,430,419 4,563,652 4,898,325 7,744,999 7,202,418 7,727,578
Other 4,003,105 3,868,958 4,005,126 5,251,208 5,312,773 5,745,006 5,745,273 5,399,182 7,063,899 7,433,221
Total revenues 34,603,725 35,228,445 35,334,049 39,846,074 42,101,555 44,339,917 46,475,349 60,427,518 64,910,379 60,472,652
Expenditures
Public representation 930,788 1,064,503 1,080,032 1,383,573 1,281,107 1,379,406 1,556,327 1,758,928 1,905,638 2,745,266
Administrative services 554,330 577,454 624,284 537,913 739,301 844,270 783,403 945,841 1,079,807 1,077,435
Financial services 2,476,740 2,068,208 2,236,941 2,191,245 2,394,866 2,358,848 4,810,339 5,668,254 6,089,585 5,978,893
Public safety 13,285,004 13,476,557 14,086,619 15,156,977 16,131,196 16,820,356 14,641,568 15,781,113 17,798,350 18,455,784
Public works 2,876,576 2,864,878 3,206,050 3,377,174 4,176,904 4,187,956 3,604,722 4,472,813 4,239,317 4,418,634
Highways, streets and bridges 2,986,909 3,102,391 3,096,875 4,554,968 2,963,498 2,965,598 2,666,529 3,330,669 3,355,487 3,997,001
Community and economic development 2,957,071 5,415,436 3,878,547 3,962,759 2,930,725 4,986,000 5,281,825 10,306,669 13,450,233 11,204,118
Culture and recreation 1,444,471 3,100,338 3,523,178 3,713,177 4,050,986 4,662,534 3,836,817 6,085,847 6,610,019 7,052,911
Other governmental functions 369,408 305,807 280,416 355,241 281,711 371,461 380,232 485,024 950,789 673,198
Debt service
Principal 417,842 428,199 283,563 288,934 294,313 818,285 2,813,804 1,342,462 1,272,509 1,463,802
Interest 272,946 257,516 211,242 197,723 189,905 543,740 943,216 1,011,004 985,750 972,209
Issuance costs - 97,578 - - - 70,525 140,750 1,000 - -
Capital outlay 3,992,111 3,867,579 2,328,615 3,134,369 9,363,862 21,498,055 19,695,829 7,775,915 6,935,934 5,406,380
Total expenditure 32,564,196 36,626,444 34,836,362 38,854,053 44,798,374 61,507,034 61,155,361 58,965,539 64,673,418 63,445,631
Excess of revenues over (under) expenditures 2,039,529 (1,397,999) 497,687 992,021 (2,696,819) (17,167,117) (14,680,012) 1,461,979 236,961 (2,972,979)
Other financing sources (uses)
Transfers in 853,910 1,563,094 1,805,000 1,370,000 1,210,236 2,017,077 895,000 9,832,799 6,116,212 282,095
Transfers out (942,933) (1,638,094) (1,818,000) (1,385,000) (1,210,236) (2,037,077) (1,555,000) (10,197,799) (8,092,525) (1,211,996)
Long-term debt issued - 97,578 - - - 21,691,740 7,152,424 1,370,873 761,603 -
Proceeds from sale of capital assets 244,685 190,957 1,529,325 741,803 1,541,041 491,924 2,908,552 1,204,675 2,976,733 3,187,917
Total other financing sources (uses) 155,662 213,535 1,516,325 726,803 1,541,041 22,163,664 9,400,976 2,210,548 1,762,023 2,258,016
Net change in fund balances $ 2,195,191 $ (1,184,464) $ 2,014,012 $ 1,718,824 $ (1,155,778) $ 4,996,547 $ (5,279,036) $ 3,672,527 $ 1,998,984 $ (714,963)
Debt service as a percentage of noncapital
expenditures 2.42% 2.09% 1.52% 1.36% 1.37% 3.40% 9.06% 4.60% 3.91% 4.20%
SOURCE: The information in these schedules (unless
otherwise noted) is derived from the annual comprehensive
financial reports for the relevant year.
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City of Muskegon
GOVERNMENTAL FUNDS 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
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%
2023 9,847,883 15.2% 11,957,105 18.4% 28,839,074 44.4% 7,202,418 11.1% 3,074,012 4.7% 604,038 0.9% 1,233,994 1.9% 2,151,855 3.3% 64,910,379 7.4%
2024 10,571,737 17.5% 12,243,618 20.2% 22,496,498 37.2% 7,727,578 12.8% 2,539,771 4.2% 638,766 1.1% 2,106,429 3.5% 2,148,255 3.6% 60,472,652 -6.8%
SOURCE: The information in these schedules (unless otherwise noted) is derived from the annual comprehensive financial reports for the relevant year.
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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
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 76.41%
2022 409,432,249 142,894,033 53,700,376 606,026,658 73,772,100 679,798,758 15,713,408 1,575,400 17,288,808 696,087,566 12.7971 75.94%
2023 452,941,194 154,077,304 57,655,896 664,674,394 74,071,500 738,745,894 16,333,392 726,600 17,059,992 755,805,886 12.7918 68.68%
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
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
2022 576,926,300 185,097,800 58,746,100 820,770,200 73,763,800 894,534,000 16,227,500 1,575,400 17,802,900 912,336,900 1,824,673,800
2023 729,954,400 214,005,200 64,048,400 1,008,008,000 74,063,900 1,082,071,900 17,654,200 726,600 18,380,800 1,100,452,700 2,200,905,400
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.
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City of Muskegon
Principal Property Taxpayers
Current Year and Ten Years Ago
6/30/2024 6/30/2015
Percent of Percent of
Taxable Total Taxable Taxable Total Taxable
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Consumers Energy $ 22,125,130 1 2.93% $ 31,855,180 1 5.4%
DTE Gas Company 15,746,855 2 2.08% 6,501,000 4 1.1%
James Street Capital Holdings 11,434,825 3 1.51%
Muskegon SC Holdings LLC 7,314,390 4 0.97% 3,880,700 9 0.7%
Michigan Electric Transmission 6,026,500 5 0.80%
Glen Oaks Apartments LLC 3,840,162 6 0.51%
West Urban Properties LLC 3,762,237 7 0.50%
B & S Holdings, LLC 3,448,631 8 0.46%
OHAT-1 LLC/OHAT-2 LLC 3,256,400 9 0.43%
Verplank Port Facitlity, LLC 3,193,100 10 0.42%
Adac Plastics 7,334,100 2 1.2%
Esco Company 6,675,096 3 1.1%
GE Aviation 5,116,098 5 0.9%
Mercy General 4,597,307 6 0.8%
Fleet Engineers Inc. 4,446,114 7 0.8%
Lorin Industries 4,014,909 8 0.7%
Coles Quality Foods 3,350,610 10 0.6%
Total - 10 Largest 80,148,230 10.60% 77,771,114 13.2%
Total - All Other 675,657,656 89.40% 511,935,435 86.8%
$ 755,805,886 100.0% $ 589,706,549 100.0%
Source: Muskegon County Equalization Department; City of Muskegon Treasurer's Office
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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
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
2022 9.7880 0.0727 2.9364 12.7971 2.3516 0.4999
2023 9.7880 0.0674 2.9364 12.7918 2.3516 0.4999
Overlapping - County-Wide Rates
Muskegon Intermediate Special Vocational Community MAISD Community
Year County School Education Education College Gen Ed College Debt
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
2022 6.7878 0.4518 2.2597 0.9827 2.1693 0.9831 0.3400
2023 6.7878 0.4518 2.2597 0.9827 2.1693 0.9831 0.2700
Overlapping - School District Grand Total
State Non-
Year Operating Debt Total Education Homestead Homestead
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
2022 17.3754 8.9712 26.3466 6.0000 44.5942 61.9696
2023 18.0000 8.7212 26.7212 6.0000 44.2689 62.2689
SOURCE: City of Muskegon Treasurer' Office
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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
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%
2022 11,061,640 9,944,396 89.9% 904,123 10,848,519 98.1% - 49,489 96,863 1.32%
2023 12,049,276 10,910,234 90.5% 991,862 11,902,096 98.8% - 95,007 36,291 1.09%
SOURCE: City of Muskegon Treasurer' Office
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City of Muskegon
TOTAL INCOME TAX COLLECTED AND NUMBER OF RETURNS FILED - GRAPHICAL
Last Ten Fiscal Years
Income Tax 2014 - 2024
$14,000,000
$12,000,000
$10,000,000
INCOME TAX $
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
2014 - 2015 2015 - 2016 2016 - 2017 2017 - 2018 2018 - 2019 2019-20 2020-21 2021-22 2022-23 2023-24
Resident $3,070,581 $2,925,036 $3,284,777 $3,278,759 $3,457,902 $3,655,458 $3,531,695 $3,771,609 $4,416,692 $4,356,988
Non-Resident 3,752,932 3,575,045 4,014,691 4,007,372 4,226,325 4,467,781 4,316,516 4,609,744 5,398,179 5,325,207
Other 1,451,153 1,651,821 1,311,374 1,472,517 1,007,446 1,014,475 1,408,615 1,621,270 2,142,234 2,561,423
Total Income Tax $8,274,666 $8,151,902 $8,610,842 $8,758,648 $8,691,673 $9,137,714 $9,256,826 $10,002,623 $11,957,105 $12,243,618
FISCAL YEAR
NUMBER OF RETURNS 2014 - 2024
20,000
18,000
1,750 1,750 1,750
1,650 1,650
16,000 1,650
1,650
14,000 1,650 1,650
1,650
12,000
RETURNS
10,631 10,713 10,578 10,278 10,256 9,505
10,000 Other
9,426
8,524 8,343
8,301 Non-Resident
8,000
Resident
6,000
4,000
5,458 5,337 5,464 5,352 5,493 5,611
4,852 4,302 4,732 4,868
2,000
-
2014 - 2015 2015 - 2016 2016 - 2017 2017- 2018 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
FISCAL YEAR
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City of Muskegon
TOTAL INCOME TAX COLLECTED AND NUMBER OF RETURNS FILED - DATA
Last Ten Fiscal Years
Income Tax 2014 - 2024
Year 2014 - 2015 2015 - 2016 2016 - 2017 2017 - 2018 2018 - 2019 2019-20 2020-21 2021-22 2022-23 2023-24
Resident $ 3,070,581 $ 2,925,036 $ 3,284,777 $ 3,278,759 $ 3,457,902 $ 3,655,458 $ 3,531,695 $ 3,771,609 $ 4,416,692 $ 4,356,988
Non-Resident 3,752,932 3,575,045 4,014,691 4,007,372 4,226,325 4,467,781 4,316,516 4,609,744 5,398,179 5,325,207
Other 1,451,153 1,651,821 1,311,374 1,472,517 1,007,446 1,014,475 1,408,615 1,621,270 2,142,234 2,561,423
Total Income Tax $ 8,274,666 $ 8,151,902 $ 8,610,842 $ 8,758,648 $ 8,691,673 $ 9,137,714 $ 9,256,826 $ 10,002,623 $ 11,957,105 $ 12,243,618
Number of Returns 2014-2024
Year 2014 - 2015 2015 - 2016 2016 - 2017 2017- 2018 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Resident 5,458 5,337 5,464 5,352 5,493 4,852 4,302 4,732 4,868 5,611
Non-Resident 10,631 10,713 10,578 10,278 10,256 9,426 8,301 8,524 8,343 9,505
Other 1,750 1,750 1,750 1,650 1,650 1,650 1,650 1,650 1,650 1,650
Total Returns 17,839 17,800 17,792 17,280 17,399 15,928 14,253 14,906 14,861 16,766
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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
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
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
2023 28,147,477 1,632,505 - 29,779,982 - 14,147,090 14,147,090 43,927,072 1,170
2024 26,994,177 1,218,703 - 28,212,880 - 15,613,476 15,613,476 43,826,356 1,167
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 annual comprehensive financial reports for the relevant year.
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City of Muskegon
DIRECT AND OVERLAPPING DEBT
June 30, 2024
Total Debt Debt Supported by City
Name of Governmental Unit Outstanding Self Supporting General Revenues
Direct Debt
City of Muskegon:
Revenue Bonds $ 15,613,476 $ 15,613,476 $ -
Capital Improvement Bonds 26,994,177 - 26,994,177
Installment Purchase Agreements 1,218,703 - 1,218,703
Component Unit Debt:
Local Development Finance Authority 562,824 562,824 -
Total City Direct Debt $ 44,389,180 $ 16,176,300 $ 28,212,880
City Share as
Gross Percent of Gross Net
Overlapping Debt
Muskegon School District $ 78,200,000 95.66% $ 74,806,120
Orchard View School District 31,340,494 16.12% 5,052,088
Reeth's Puffer School District 51,292,550 0.74% 379,565
Hackley Public Library 1,385,000 95.66% 1,324,891
Muskegon County 117,195,517 13.16% 15,422,930
Muskegon Community College 22,880,000 13.16% 3,011,008
Total Overlapping Debt $ 302,293,561 99,996,602
Total City Direct and Overlapping Debt $ 128,209,482
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 annual comprehensive financial reports for the relevant year.
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City of Muskegon
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt Limit $ 61,510,980 $ 60,962,090 $ 61,333,841 $ 64,124,907 $ 101,083,635 $ 108,732,428 $ 128,830,259 $ 144,430,377 $ 167,769,346 $ 188,153,551
Total net debt applicable to limit 11,969,708 11,313,794 10,290,785 9,240,855 8,510,021 27,943,934 31,848,925 31,499,735 30,613,355 28,775,704
Legal debt margin $ 49,541,272 $ 49,648,296 $ 51,043,056 $ 54,884,052 $ 92,573,614 $ 80,788,494 $ 96,981,334 $ 112,930,642 $ 137,155,991 $ 159,377,847
Total net debt applicable to the limit as 19.46% 18.56% 16.78% 14.41% 8.42% 25.70% 24.72% 21.81% 18.25% 15.29%
a percentage of debt limit
Legal Debt Margin Calculation for 2024:
Assessed Valuation: $ 1,881,535,509
Legal Debt Limit (10% ) 188,153,551
Total Indebtedness: $ 44,389,180
Debt not Subject to Limitation:
Paid by Special Assessment -
Revenue Bonds (15,613,476)
Debt Subject to Limitation 28,775,704
Legal Debt Margin $ 159,377,847
SOURCE: The information in these schedules
(unless otherwise noted) is derived from the annual
comprehensive financial reports for the relevant
year.
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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
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
2023 10,752,667 8,581,636 2,171,031 1,020,000 157,421 1,177,421 1.84
2024 10,477,251 8,286,595 2,190,656 1,030,000 162,364 1,192,364 1.84
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
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
2023 10,190,360 7,738,670 2,451,690 275,000 124,455 399,455 6.14
2024 10,515,742 8,083,834 2,431,908 282,000 143,188 425,188 5.72
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 annual comprehensive financial reports for the
relevant year.
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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
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%
2023 38,220 987,376,731 25,834 35.3 3,353 1,050 158,396,766 8.8%
2024 38,318 1,014,656,178 26,480 36.1 3,559 1,126 246,148,439 8.8%
SOURCE: US Census Bureau, Muskegon Area Intermediate School Distrct (MAISD), City of Muskegon Inspections Department, Michigan Department of Technology,
Management, & Budget
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City of Muskegon
PRINCIPAL EMPLOYERS
Current Year and Ten Years Ago
2024 2015
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Mercy General Health Partners 3,536 1 28.90% 4,114 1 27.8%
County of Muskegon 1,078 2 8.81% 755 3 5.1%
State of Michigan 762 3 6.23%
Muskegon Public School District 739 4 6.04% 565 5 3.8%
G.E. Aviation 685 5 5.60% 331 8 2.2%
ADAC Automotive 670 6 5.48% 970 2 6.6%
Muskegon Community College 459 7 3.75% 198 9 1.3%
Johnson Technologies 456 8 3.73%
Muskegon Area Intermediate School District 400 9 3.27%
Orthopaedic Associates 279 10 2.28%
Port City Group Companies 667 4 4.5%
Cole's Quality Foods 180 10 1.2%
SAF Holland USA 345 7 2.3%
Baker College 476 6 3.2%
SOURCE: City of Muskegon; Muskegon Area First; Michigan Department of Energy, Labor & Economic Growth
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City of Muskegon
BUDGETED FULL-TIME CITY GOVERNMENT POSITIONS BY DEPARTMENT
Last Ten Fiscal Years
Department 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Administration - - - - - - - - - -
Affirmative Action 1.30 1.30 1.46 0.40 1.00 1.00 1.00 1.00 1.00 1.00
Cemetaries 1.25 1.25 1.25 1.25 1.25 2.25 2.25 2.25 2.25 2.25
City Clerk & Elections 3.00 3.00 3.54 3.80 3.80 4.80 5.80 5.80 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 1.05 1.00 1.00 1.00 1.00
City Manager's Office 2.05 2.05 1.75 2.75 2.75 2.75 3.30 3.30 4.30 4.30
City Treasurer's Office 5.50 5.50 5.50 5.50 5.50 5.50 5.30 5.30 5.50 5.50
Environmental Services 2.00 2.00 2.00 2.00 - - - - - -
Farmers Market 0.05 0.05 - 0.20 1.20 1.20 0.70 0.70 1.20 1.20
Finance Administration 3.00 3.00 3.00 3.60 3.00 3.45 3.70 3.70 3.70 3.70
Fire 32.00 35.00 35.00 35.00 26.00 29.00 29.50 29.50 29.50 29.50
Fire Safety Inspections - - - - - - - - - -
Income Tax Administration 3.50 3.50 3.50 3.50 3.50 3.50 3.70 3.70 3.50 3.50
Information Systems 3.00 3.00 3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50
Parks 6.00 6.00 7.05 7.05 10.05 10.05 10.05 10.05 11.00 11.00
Planning, Zoning & Economic Development 3.40 3.40 3.45 3.45 5.45 6.00 7.00 7.00 6.75 6.75
Police 88.00 88.00 88.00 88.00 89.00 89.00 91.00 91.00 92.00 92.00
Sanitation 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Senior Transit - - - - - - - - - -
MVH-Major Streets 10.70 10.70 10.70 10.70 12.20 12.20 13.20 13.20 12.75 12.75
MVH-Local Streets 6.70 6.70 6.70 6.70 7.20 7.20 7.20 7.20 6.75 6.75
Community Development 4.00 4.00 4.00 3.55 3.55 4.30 5.30 5.30 5.30 5.30
Sewer Maintenance 9.80 9.80 9.80 9.80 9.80 10.80 10.95 10.95 10.70 10.70
Water Filtration 10.00 10.00 10.00 10.00 10.00 11.00 12.15 12.15 11.90 11.90
Water Maintenance 11.75 11.75 11.75 11.75 11.75 12.75 14.90 14.90 16.65 16.65
Hartshorn Marina Fund 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.25 0.25
Mercy Health Arena - - - - - 3.00 6.00 6.00 6.50 6.50
Public Service Building 8.50 8.50 8.50 8.50 8.50 8.75 8.75 8.75 9.50 9.50
Engineering 4.95 4.95 4.95 4.95 5.95 5.20 4.25 4.25 5.50 5.50
Equipment 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25
228.00 231.00 232.45 233.50 232.50 245.25 257.50 257.50 263.50 263.50
SOURCE: City of Muskegon Finance Department
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City of Muskegon
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Administrative Services
Elections
Number of registered voters 24,014 24,005 24,612 26,136 25,182 28,127 27,889 28,004 28,004 28,699
Number of votes cast:
Last general election 7,763 2,547 13,179 15,271 11,407 3,105 15,156 15,519 15,519 3,386
Last city election 7,763 2,547 13,179 2,254 1,938 3,105 2,968 4,459 4,459 3,386
Percentage of registered voters voting:
Last general election 32% 11% 54% 58% 45% 11% 54% 55% 55% 16%
Last city election 32% 11% 54% 9% 8% 11% 12% 16% 16% 16%
Financial Services
Property Tax Bills 14,528 14,611 14,243 14,229 14,180 15,090 15,117 15,103 15,145 15,060
Income Tax Returns 17,839 17,800 17,792 17,280 17,399 15,928 14,253 14,906 14,861 16,766
Paper Check Issued to Vendors 1,527 1,608 1,675 1,782 1,863 1,946 1,676 1,853 1,689 1,742
Electronic Payments to Vendors 1,471 1,849 1,998 2,104 2,307 2,494 2,465 3,654 3,948 4,109
Public Safety
Fire Protection
Number of firefighter and officer positions 35 35 35 23 29 26 29 25 26 27
Number of emergency calls 4,881 4,938 4,895 4,948 5,106 5,147 4,203 6,018 5,729 5,735
Police Protection
Number of sworn officer positions 76 76 75 79 80 80 89 80 80 80
Part I (Major) Crimes 2,107 1,989 2,816 2,357 1,728 1,621 1,442 808 1,364 1,502
Public Works
Refuse Collected (Tons per Year) 10,512 10,994 11,009 10,801 10,753 11,534 12,289 10,326 11,233 11,180
Recyclables Collected (Tons per Year) - - - - - 160 224 341 356 336
Yard Waste - - - - - - - - 7,252 6,412
Water & Sewer
Average daily water consumption (GPD) 8,293,570 11,027,945 10,947,233 9,559,304 10,867,590 10,674,712 7,570,000 10,789,900 10,950,579 10,619,983
Number of consumers 13,223 13,307 13,248 13,104 13,343 13,422 12,660 12,821 12,876 12,933
Water main breaks repaired 15 16 12 15 11 17 13 15 7 7
Sewer flows (Millions Gallons per Year) 2,013 1,794 1,815 1,832 2,048 2,138 1,596 1,462 1,464 1,437
Sewer Service Calls 501 521 462 451 443 475 541 426 463 497
SOURCE: City of Muskegon Departments
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City of Muskegon
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 196.95 196.95 196.95 196.95 197.19 187.34 187.34 187.28 187.28 184.29
Number of streetlights 2,838 2,900 2,984 2,967 2,930 2,995 2,995 2,995 2,995 2,994
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 2 2 2 2
Sewer
Sanitary sewers (miles) 177.04 177.04 177.04 177.04 177.04 177.04 176.69 166.63 166.63 167.50
Storm sewers (miles) 184.35 184.35 184.35 184.35 184.35 184.35 147.58 148.38 148.38 148.38
Water
Water mains (miles) 195.95 195.95 195.95 195.95 195.27 195.27 213.92 214.70 214.70 215.60
SOURCE: City of Muskegon Departments
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SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS
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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 (Government Auditing Standards), 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, 2024, 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 18, 2024.
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.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified.
However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain
deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
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. We consider the deficiencies described in the
accompanying Schedule of Findings and Questioned Costs as Findings 2024-001, 2024-002, and 2024-003 to be
material weaknesses.
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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 18, 2024
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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, 2024. 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, 2024.
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 of 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.
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BRICKLEY DELONG
City Commission
City of Muskegon
Page 2
Report on Compliance for Each Major Federal Program—Continued
Auditor’s Responsibilities 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.
• identify 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 limitations, 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 18, 2024
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City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30, 2024
Entitlement 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, 2023 Transfers (Cash Basis) Expenditures June 30, 2024 Subrecipients Notes
U.S. Department of Housing and Urban Development
Direct programs
CDBG - Entitlement/Special Purpose Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218
B-19-MC-26-0026 $ 973,451 $ 6,712 $ - $ 6,712 $ - $ - $ -
B-20-MC-26-0026 994,698 10,644 - 50,123 64,605 25,126 -
COVID-19 - B-20-MW-26-0026 794,564 2,045 - 9,045 7,000 - -
B-21-MC-26-0026 988,508 32,323 - 82,859 172,849 122,313 -
B-22-MC-26-0026 912,894 55,902 - 150,835 120,100 25,167 -
B-23-MC-26-0026 901,291 - - 425,832 553,649 127,817 11,993
Program Income 7,660 - - 7,660 7,660 - -
Total CDBG - Entitlement Grants Cluster 5,573,066 107,626 - 733,066 925,863 300,423 11,993
Home Investment Partnerships Program 14.239
M-19-MC-26-0215 334,818 6,241 - 6,241 59,502 59,502 -
M-20-MC-26-0215 343,362 - - - - - -
M-21-MC-26-0215 336,456 449 (449) - - - -
COVID-19 - M-21-MP-26-0215 1,218,250 - 449 769 320 - -
M-22-MC-26-0215 339,650 11,061 - 33,966 22,905 - -
M-23-MC-26-0215 325,495 - - 1,279 27,533 26,254 -
Program Income 221,833 - - 221,833 221,833 - -
Total Home Investment Partnerships Program 3,119,864 17,751 - 264,088 332,093 85,756 -
Healthy Homes Production Program 14.913
MIHHP0083-22 1,500,000 100,558 - 378,008 542,204 264,754 -
Total U.S. Department of Housing and Urban Development 10,192,930 225,935 - 1,375,162 1,800,160 650,933 11,993
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City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
For the year ended June 30, 2024
Entitlement 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, 2023 Transfers (Cash Basis) Expenditures June 30, 2024 Subrecipients Notes
U.S. Department of Justice
Direct programs
Bulletproof Vest Partnership Program 16.607
2021 Grant $ 4,410 $ 4,410 $ (4,410) $ 2,290 $ 2,290 $ - $ - 3
Passed through Michigan Department of Health and Human Services
Violence Against Women Formula Grants 16.588
E20231736-00 282,512 18,752 - 51,582 32,830 - -
E20244624-00 282,512 - - 122,072 137,850 15,778 -
565,024 18,752 - 173,654 170,680 15,778 -
Passed through Ottawa County
Edward Byrne Memorial Justice Assistance Grant Program 16.738
2018-MU-BX-0886 14,313 - - 14,313 14,313 - -
2022-15PBJA-22-GG-00 16,698 - - 14,313 16,698 2,385 -
15PBJA-23-GG-03505-JAGX 43,247 - - - 25,571 25,571 -
74,258 - - 28,626 56,582 27,956 -
Total U.S. Department of Justice 643,692 23,162 (4,410) 204,570 229,552 43,734 -
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 (6,573,722) - - 1,626,157 (4,947,565) 1,107,500
Passed through Michigan Strategic Fund
Coronavirus State and Local Fiscal Recovery Funds 21.027
COVID-19 - Revitalization and Placemaking Program 410,471 - - 410,471 410,471 - -
Passed through Michigan Department of Environment, Great Lakes, and Energy
Coronavirus State and Local Fiscal Recovery Funds 21.027
COVID-19 - 7467-01 3,236,505 - - 718,446 1,887,651 1,169,205 -
Total U.S. Department of Treasury 26,528,870 (6,573,722) - 1,128,917 3,924,279 (3,778,360) 1,107,500
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City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
For the year ended June 30, 2024
Entitlement 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, 2023 Transfers (Cash Basis) Expenditures June 30, 2024 Subrecipients Notes
Environmental Protection Agency
Passed through Department of Environment, Great Lakes, and Energy
Capitalization Grants for Drinking Water State Revolving Funds 66.468
7467-01 $ 2,757,963 $ - $ - $ 50,000 $ 50,000 $ - $ -
U.S. Department of Health and Human Services
Passed through Michigan Department of Health and Human Services
Children's Health Insurance Program 93.767
E20231461-00 1,395,100 249,618 - 814,237 564,619 - -
E20241696-00 1,500,000 - - 727,576 962,899 235,323 -
Total U.S. Department of Health and Human Services 2,895,100 249,618 - 1,541,813 1,527,518 235,323 -
Department of Homeland Security
Direct programs
Assistance to Firefighters Grant 97.044
EMW-2022-FG-06297 70,277 - - 70,227 70,227 - -
TOTAL FEDERAL ASSISTANCE $ 43,088,832 $ (6,075,007) $ (4,410) $ 4,370,689 $ 7,601,736 $ (2,848,370) $ 1,119,493
The accompanying notes are an integral part of this statement.
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City of Muskegon
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30, 2024
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, 2024. 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. The beginning accrual for the Bulletproof Vest Partnership Program was restated for a prior year receivable inadvertently reported on an incorrect line.
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, 2024 and federal expenditures per the Schedule of Expenditures of Federal Awards.
Federal revenues per City of Muskegon financial statements
General Fund $ 299,779
Trinity Health Arena Fund 410,471
Water Fund 1,937,651
Other governmental funds 4,724,342
7,372,243
Plus program income 229,493
Federal expenditures per the Schedule of Expenditures of Federal Awards $ 7,601,736
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City of Muskegon
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended June 30, 2024
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? X yes 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 or Cluster
U.S. Department of Treasury
21.027 • Coronavirus State and Local Fiscal Recovery Funds
5. Dollar threshold used to distinguish between type A and type B programs: $750,000
6. Auditee qualified as low-risk auditee? X yes no
SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2024-001: MATERIAL WEAKNESS—Completeness of Accounts Payable
Criteria: All material expenditures should be identified and recorded in the proper fiscal year.
Condition: There were material expenditures which were attributable to the year under audit but were not properly
identified or recorded in the proper fiscal year.
Context: During our year-end substantive testing over accounts payable, we noted material unrecorded accounts
payable, which resulted in significant year-end adjustments.
Effect: Failure to properly identify accounts payable can adversely affect the accuracy of the financial statements
and potentially result in significant budget violations if unbudgeted transactions are not identified.
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City of Muskegon
SCHEDULE OF FINDINGS AND QUESTIONED COSTS—Continued
For the year ended June 30, 2024
SECTION II – FINANCIAL STATEMENT FINDINGS—Continued
Finding 2024-001: MATERIAL WEAKNESS—Completeness of Accounts Payable—Continued
Cause: The City failed to identify significant accounts payable, and recorded the related expenditures in the
wrong period.
Repeat finding: This is not a repeat finding.
Recommendation: Controls over recording expenditures and accounts payable should be strengthened such that
there is a higher degree of oversight over the period in which the expenditure is recorded.
Views of responsible officials: The City agrees with the finding and will improve year-end closing procedures
to ensure that all payables are recorded in the proper period.
Finding 2024-002: MATERIAL WEAKNESS—Accuracy of Compensated Absences
Criteria: The liability for compensated absences should be calculated accurately and reconciled to detailed
supporting documentation during the financial close process.
Condition: There were unrecognized material clerical errors made in the calculation of the liability for
compensated absences.
Context: During our year-end substantive testing over compensated absences, we noted clerical errors resulting
in a material misstatement of the liability for compensated absences.
Effect: The City was unable to accurately calculate the liability for compensated absences.
Cause: The City experienced personnel changes which resulted in difficulty consistently following City
accounting procedures.
Repeat finding: This is not a repeat finding.
Recommendation: The City should review its accounting procedures with appropriate personnel and regularly
review compliance with these procedures.
Views of responsible officials: The City agrees with the finding and will improve year-end closing procedures
to ensure that the liability for compensated absences is properly recorded at year-end.
Finding 2024-003: MATERIAL WEAKNESS—Completeness of Leases Receivable
Criteria: All material leases receivable should be identified and recorded.
Condition: There were material leases receivable which were not recorded in the City’s accounting records.
Context: During our inquiries of City personnel, we noted unrecorded leases receivable, which resulted in
significant year-end adjustments.
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City of Muskegon
SCHEDULE OF FINDINGS AND QUESTIONED COSTS—Continued
For the year ended June 30, 2024
SECTION II – FINANCIAL STATEMENT FINDINGS—Continued
Finding 2024-003: MATERIAL WEAKNESS—Completeness of Leases Receivable
Effect: Failure to properly identify material account balances can result in a material misstatement of the
financial statements.
Cause: The City failed to identify significant leases receivable, so the related receivables and deferred inflows
of resources were not properly recorded.
Repeat finding: This is not a repeat finding.
Recommendation: The City should regularly review its portfolio of leases receivable with all relevant
supervisory personnel to ensure it is complete.
Views of responsible officials: The City agrees with the finding and will improve communication between
departments to ensure that all leases are identified and properly recorded.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
NONE
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[This page was intentionally left blank.]
170
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CLIENT DOCUMENTS
171
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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 18, 2024
FAX (231)726-2501
Computer Info. U.S. Department of Housing and Urban Development
Technology
(231)724-4126 Washington D.C.
FAX (231)722-4301
Engineering
(231)724-6707 City of Muskegon respectfully advises you that there were no audit findings reported in our single
FAX (231)727-6904 audit report, dated December 27, 2023, for the year ended June 30, 2023.
Finance
(231)724-6713 Sincerely,
FAX (231)726-2325
Fire Department
(231)724-6795
FAX (231)724-6985
Human Resources
Co. (Civil Service)
Ken Grant
(231)724-6442 Finance Director
FAX (231)724-6840
Income Tax
(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
FAX (231)755-5290 http://www.shorelinecity.com
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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 CORRECTIVE ACTION PLAN
FAX (231)724-4178
Comm. & Neigh.
Services December 18, 2024
(231)724-6717
FAX (231)726-2501
Computer Info. U.S. Department of Housing and Urban Development
Technology Washington D.C.
(231)724-4126
FAX (231)722-4301
Engineering
(231)724-6707
City of Muskegon respectfully submits the following Corrective Action Plan for the year ended June
FAX (231)727-6904 30, 2024.
Finance
(231)724-6713 Name and address of independent public accounting firm:
FAX (231)726-2325
Brickley DeLong, P.C.
Fire Department P.O. Box 999
(231)724-6795 Muskegon, Michigan 49443
FAX (231)724-6985
Human Resources
Audit period: June 30, 2024
Co. (Civil Service)
(231)724-6442 The findings from the Schedule of Findings and Questioned Costs for the year ended June 30, 2024
FAX (231)724-6840
are discussed below. The findings are numbered consistently with the numbers assigned in the
Income Tax schedule.
(231)724-6770
FAX (231)724-6768
SECTION II – FINANCIAL STATEMENT FINDINGS
Mayor’s Office
(231)724-6701
FAX (231)722-1214
Finding 2024-001: MATERIAL WEAKNESS—Completeness of Accounts Payable
Planning/Zoning Recommendation: Controls over recording expenditures and accounts payable should be
(231)724-6702
FAX (231)724-6790 strengthened such that there is a higher degree of oversight over the period in which the
Police Department
expenditure is recorded.
(231)724-6750
FAX (231)722-5140 Action Taken: The Finance department will create an end of fiscal year checklist for all
Public Works
departments to ensure that accounts payable are recorded in the proper fiscal year. The Finance
(231)724-4100 Analyst will review all payables above $25,000 to make sure that they are recorded in the proper
FAX (231)722-4188
period.
SafeBuilt
(Inspections) Responsible Person and Anticipated Completion Date: Finance Analyst, June 30, 2025
(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
FAX (231)755-5290 http://www.shorelinecity.com
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U.S. Department of Housing and Urban Development
December 18, 2024
Page 2
SECTION II – FINANCIAL STATEMENT FINDINGS—Continued
Finding 2024-002: MATERIAL WEAKNESS—Accuracy of Compensated Absences
Recommendation: The City should review its accounting procedures with appropriate personnel and regularly
review compliance with these procedures.
Action Taken: The Payroll Clerk will run the proper reports from the City’s payroll system. The Payroll Clerk
will review the data from the report with her supervisor. The Payroll Clerk will enter the data on the
spreadsheet which will be reviewed a second time by the Financial Manager for errors.
Responsible Person and Anticipated Completion Date: Financial Manager, June 30, 2025
Finding 2024-003: MATERIAL WEAKNESS—Completeness of Leases Receivable
Recommendation: The City should regularly review its portfolio of leases receivable with all relevant
supervisory personnel to ensure it is complete.
Action Taken: The Finance Director will work with all departments to identify leases receivable during the
budget process. The Finance Director will also have Division Heads forward all new lease contracts to the
Finance Director to determine whether they need to be added to the City’s leases receivable list. Finally,
when items are added to the Commission Agenda for approval, Division Heads will identify items that are
leased over multiple years.
Responsible Person and Anticipated Completion Date: Finance Director, June 30, 2025
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no findings in relation to the major federal award program.
If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Ken
Grant at (231) 724-6932.
Sincerely,
Ken Grant
Finance Director
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Approval of Minutes
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
To approve minutes of the December 2nd Special Commission Meeting, the December 9th
Commission Worksession Meeting, and the December 10th City Commission Meeting.
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A X
Recommended Motion:
Approval of the minutes.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 182 of 369
CITY OF MUSKEGON
SPECIAL CITY COMMISSION
MEETING
December 2, 2024 @ 3:00 PM
MUSKEGON RESCUE MISSION
400 W. LAKETON AVE., MUSKEGON, MI 49442
MINUTES
A quorum of the City Commission met at the Muskegon Rescue Mission.
Present: Mayor Ken Johnson, Vice Mayor Rebecca St.Clair, Commissioners
Katrina Kochin, Jay Kilgo, and Willie German, Jr., City Manager Jonathan
Seyferth
Absent: Commissioners Destinee Keener and Rachel Gorman
Dan Skoglund, Melissa Boughner, and Jonathan Scouten gave the Commission
a tour of the men’s facility, the Community Resource Center, and the Bright
Futures Daycare and Preschool.
ADJOURNMENT: The meeting adjourned at 4:50 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC
City Clerk
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CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
December 9, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
Present: Mayor Ken Johnson, Vice Mayor Rebecca St.Clair, Commissioners
Destinee Keener (left at 6:56 p.m.), Rachel Gorman, Katrina Kochin, and Jay
Kilgo, City Manager Jonathan Seyferth, and City Clerk Ann Marie Meisch
Absent: Commissioner Willie German, Jr.
2024-99 NEW BUSINESS
A. Muskegon Social Equity Program - Economic Development Grants
Planning
The Planning Department has created a draft Facade Improvement Grant that
would utilize funds from the Muskegon Social Equity Program (MSEP). The MSEP
application has been updated to show the proposed Facade Improvement
Grant, which can be found at the end of the document. Any commercial,
industrial or non-profit business located within one mile of a marihuana retailer
would be eligible for up to $10,000 in grant funding, with no matching funds
required. This grant is intended to beautify our commercial corridors by funding
building facade improvements, signage upgrades, parking lot improvements,
landscaping, fencing/screening, etc. In June of this year, the Commission
approved the plan to allocate 35% ($56,870) of the MSEP funds towards business
grants, with a proposed program to be presented at a later date.
Mike Franzak, Planning Director, explained the item and answered questions.
There was a consensus of the City Commission.
B. Beach Parking Fees Summer 2025 - Update Manager's Office
Staff is requesting a change to the recently approved beach parking fees. In an
effort to address concerns with the newly adopted beach parking fees, staff is
recommending the following changes:
Reduce the weekend daily rate from $20 per day to $15 per day.
Offer a special sale price for the month of December 2024 for seasonal passes.
Each person purchasing a 2025 season pass at a city office will receive 1 free
2025 season pass. Members of the public are welcome to purchase as many
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Page 184 of 369
season passes as they wish, but only one free pass will be provided.
City Manager Jonathan Seyferth and Deputy City Manager LeighAnn Mikesell
gave an overview of the item. Commission suggested that the BOGO should end
January 16, 2025, and that they should be limited to two free passes. It was also
suggested that the weekend would mean Saturday and Sunday.
C. 880 First St. Demolition- Asbestos Abatement Proposal Economic
Development
City staff requests approval of Asbestos Abatement Inc.'s proposal for asbestos
abatement to proceed with the approved demolition of the 880 First St. structure.
The City of Muskegon solicited bids from qualified contractors for the demolition
of the building located at 880 First St., Muskegon, MI 49440. The scope of work
includes complete demolition and removal of the structure, including all
foundations and footings, backfilling the site, hydroseeding, and asbestos
abatement. The primary objective is to eliminate blight, improve the area's
aesthetic appeal, and encourage economic development by preparing the site
for future opportunities.
Asbestos Abatement Inc. was awarded the bid by the City Commission on
October 8, 2024. They have completed an asbestos survey. To proceed with
demolition, asbestos abatement must be completed. Asbestos Abatement Inc.
has submitted their abatement proposal.
Scope of Work
• Removal and disposal of asbestos-containing materials as identified in the
NESHAP survey dated 11/25/24.
• Required personal air monitoring and clearances included.
• Continuous third-party air monitoring is not included.
• State notifications and permits included.
Total Cost: $94,125
City Manager Jonathan Seyferth explained the item.
PUBLIC COMMENT: Public comments received.
ADJOURNMENT: Motion by Commissioner Kochin, second by Vice Mayor St.Clair
to adjourn at 7:09 p.m.
MOTION PASSES
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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CITY OF MUSKEGON
CITY COMMISSION MEETING
December 10, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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 10,
2024. Pastor Apollo McCullough from Port City Church, opened the meeting
with prayer, after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St.Clair, Commissioners Jay
Kilgo, Rachel Gorman, and Katrina Kochin, City Manager Jonathan Seyferth,
City Attorney John Schrier, and City Clerk Ann Marie Meisch
Absent: Commissioners Willie German, Jr., and Destinee Keener
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-100 CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve minutes of the November 26, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Sale of 1221 Sanford Planning
Staff is seeking authorization to sell the vacant lot at 1221 Sanford to Kara Novak
(Orangefin Properties LLC). Kara Novak (Orangefin Properties LLC) would like to
purchase the vacant buildable lot at 1221 Sanford for $4,125 (75% of the True
Cash Value of $5,500) plus half of the closing costs and the fee to register the
deed. Kara Novak (Orangefin Properties LLC) will be constructing a single-family
home on the property. The County traded the City this address after selling us
1694 Pine in error, which was already part of a development agreement with
Allen Edwin Homes.
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STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the
sale of 1221 Sanford, as described in the purchase agreement, and to have the
Mayor and Clerk sign both the purchase agreement and the deed.
C. Resolution Designating a Portion of Western Avenue as "L.C. Walker Way"
in Honor of Louis Carlisle Walker Manager's Office
This resolution proposes designating a portion of Western Avenue as "L.C. Walker
Way" in honor of Louis Carlisle Walker, co-founder of the Shaw-Walker
Company. L.C. Walker significantly influenced Muskegon's industrial growth,
economic development, and cultural life. His philanthropic efforts include
contributions to the Hackley Art Gallery and the creation of the L.C. Walker
Arena, integral to the City's community and entertainment landscape.
The designation, covering Western Avenue between Division and Franklin
Streets, adds an honorary title without changing official addresses. Signage will
commemorate his contributions, symbolizing his enduring legacy in Muskegon's
history and civic identity.
STAFF RECOMMENDATION: To approve the resolution to designate a portion of
Western Avenue as "L.C. Walker Way" in honor of Louis Carlisle Walker.
D. MDNR Urban & Community Forestry Grant Public Works
Staff seeks authorization to enter into an agreement with the West Michigan
Shoreline Regional Development Commission (WMSRDC) for administration of a
$225,000 MDNR forestry grant on behalf of the City.
Staff worked with WMSRDC to apply for a forestry grant that will provide a
complete inventory of all publicly-owned trees within the City. The data will
include location, species, condition, a photo and more. The data will be
presented to the City in a software system that will integrate with DPW's asset
management and GIS software, and will recommend actions that will improve
the health of each tree, or will recommend removal of a tree if necessary.
WMSRDC will manage the grant, and the agreement sets up the framework for
that to happen. The grant is exclusively for the City of Muskegon, however
WMSRDC's environmental programs staff has more experience applying for and
managing grants of this type. The grant also includes a limited amount of tree
removals and plantings, which City staff will perform in concert with WMSRDC's
management. The City's staff and equipment time (worth $43,500) is the only
match necessary, which will be accommodated within the department's
budget.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with the
West Michigan Shoreline Regional Development Commission (WMSRDC) for
administration of a $225,000 MDNR forestry grant on behalf of the City.
E. Ordinance Change: Parental Responsibility Ordinance Public Safety
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The City of Muskegon's Parental Responsibility Ordinance needs to change its
definition of juvenile from under the age of 17 years to under the age of 18
years to follow State of Michigan law.
In 2021, in accordance with the Michigan Juvenile Justice Reform Act of 2018,
the definition of juvenile changed from age 17 and under to 18 and under in
MCL Section 712A.1.
STAFF RECOMMENDATION: I move to change the definition of minor in the City
of Muskegon's Parental Responsibility Ordinance from any juvenile under the
age of 17 to any juvenile under the age of 18.
F. Cost of Living Adjustment - Non-Union Employees Manager's Office
At the end of the calendar year, management recommends an adjustment to
non-union wages. Union wage adjustments are planning through their various
contracts.
The administration recommends a 3.3% cost-of-living adjustment (COLA). This
COLA is consistent with US Bureau of Labor Statistics (BLS) data, which shows
that as of mid-November 2024 (the period for which information is most recently
available), inflation was 3.3% for the Midwest region compared to a year ago
(BLS report follows this memo).
STAFF RECOMMENDATION: I move to approve the 3.3% wage increase for non-
union team members effective January 1, 2025.
G. Non Union Part Time & Limited Term Wage Matrix Employee Relations
Each year we update the Part-time and Limited-term Wage Matrix for the
upcoming year.
STAFF RECOMMENDATION: Approve the recommendations for the 2025 Part-
time and Limited-term Wage Matrix.
H. Rezoning of 1095 3rd St from B-2 to FBC, NC. SECOND READING Planning
Staff initiated request to rezone a portion of 1095 3rd Street from Convenience
Comparison Business (B-2), to Form Based Code, Neighborhood Core.
The City of Muskegon recently sold the former “Catholic Charities” property at
the corner of 3rd/Houston. The developer plans to rehab the existing building
into apartments and to also add additional residential units, such as rowhouses,
on the vacant portion of land along Houston Ave. The portion of the property
that contains the existing building is zoned Form Based Code, Mainstreet. Staff is
proposing to rezone the current B-2 portion of the property to Form Based Code,
Neighborhood Core. Staff believes this zoning designation would allow the most
flexibility for different types of housing units, as the addition is still being
designed.
Page 3 of 10
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The Planning Commission unanimously voted (7-0, 2 absent) to recommend
approval of the rezoning.
STAFF RECOMMENDATION: I move to approve the request to rezone the
property at 1095 3rd St from B-2, Convenience and Comparison Business to Form
Based Code, Neighborhood Core.
K. Mutual Aid Box Alarm System Public Safety
The City of Muskegon Fire Department would like to enter into the interlocal
agreement with the Muskegon County Mutual Aid Box Alarm System (MABAS)
Division 3602.
As was discussed during the Legislative Policy Committee meeting on Monday,
Dec. 2, the Mutual Aid Box Alarm System (MABAS) is a statewide mutual aid
agreement that covers liability and authority to receive and provide mutual aid
to other Fire Departments that have signed the MABAS Agreement. These
department resources that come from across the state or in the neighboring
community.
Through mutual aid, MI-MABAS has the capability to provide emergency
response locally or statewide when lives, property or the environment is
threatened by man-made, technological or natural disasters or emergencies by
deploying fire resources, emergency medical services, technical rescue teams,
hazardous materials teams and other special rescue operations needed and
requested by the host/stricken community.
There are currently 13 fire departments in the Muskegon County MABAS Division
3602.
STAFF RECOMMENDATION: I move to have the Mayor and the City Clerk sign the
resolution for the City of Muskegon Fire Department to participate in the
Muskegon County Mutual Aid Box Alarm System Division.
L. Emergency Sewage Pump & Haul Public Works
Staff is requesting retroactive authorization to pay for sewage pumping and
hauling services provided by West Michigan Septic, Sewer & Drain at the
Muskegon Correctional Facility site.
The Muskegon Correctional Facility (MCF) on Sheridan Drive has a sewer pump
station that pumps the facility’s sewage into the City’s sewer mains. A 1971
agreement required the State to pay for the construction of the sewer pump
station, and it also required the City to maintain the pump station at its expense.
A 2016 assessment found this station to be deteriorating and undersized. The
City began pushing the State to build a new pump station, and construction
finally began this fall. According to the current construction schedule, the new
pump station should be completed within the next month.
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Unfortunately, the existing pump station suffered a catastrophic failure on the
morning of December 1. An emergency pump and haul operation was
immediately implemented to keep the MCF operational. West Michigan Septic,
Sewer & Drain provided two trucks with staff to remove and haul sewage
around the clock for 57 hours. The pump and haul operation was ended upon
the installation of a temporary pumping system. Staff is requesting retroactive
authorization to pay the invoice from West Michigan Septic, Sewer & Drain for
$30,825.00.
STAFF RECOMMENDATION: Authorize staff to pay West Michigan Septic, Sewer &
Drain $30,825.00 for emergency sewage pumping and hauling services.
N. 880 First St. Demolition- Asbestos Abatement Proposal Economic
Development
City staff requests approval of Asbestos Abatement Inc.'s proposal for asbestos
abatement to proceed with the approved demolition of the 880 First St.
structure.
The City of Muskegon solicited bids from qualified contractors for the demolition
of the building located at 880 First St., Muskegon, MI 49440. The scope of work
includes complete demolition and removal of the structure, including all
foundations and footings, backfilling the site, hydroseeding, and asbestos
abatement. The primary objective is to eliminate blight, improve the area's
aesthetic appeal, and encourage economic development by preparing the
site for future opportunities.
Asbestos Abatement Inc. was awarded the bid by the City Commission on
October 8, 2024. They have completed an asbestos survey, and the report is
available for your review. To proceed with demolition, asbestos abatement
must be completed. Asbestos Abatement Inc. has submitted their abatement
proposal, which is also available for your review.
Scope of Work
• Removal and disposal of asbestos-containing materials as identified in the
NESHAP survey dated 11/25/24.
• Required personal air monitoring and clearances included.
• Continuous third-party air monitoring is not included.
• State notifications and permits included.
Total Cost: $94,125
STAFF RECOMMENDATION: I move to approve the asbestos abatement proposal
submitted by Asbestos Abatement Inc. for the property located at 880 First St.,
Muskegon, MI 49440, in the amount of $94,125.
O. Concur with CRC Recommendations to Accept Resignations and Make
Appointment City Clerk
Page 5 of 10
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To concur with the Community Relations Committee recommendation to
accept the resignation of Barry Williams from the Housing Commission and to
appoint Jesse De Los Santos.
STAFF RECOMMENDATION: Concur with the Community Relations Committee
recommendation to accept the resignation of Barry Williams from the Housing
Commission and to appoint Jesse De Los Santos.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
Consent Agenda minus Items I, J, and M.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Gorman, and Kochin
Nays: None
MOTION PASSES
2024-101 ITEMS REMOVED FROM THE CONSENT AGENDA
I. Beach Parking Fees Summer 2025 - Update Manager's Office
Staff is requesting a change to the recently approved beach parking fees. Staff
is recommending the following changes to address concerns about the newly
adopted beach parking fees.
The weekend (Saturday and Sunday) daily rate will be reduced from $20 to $15.
Weekday rates (Monday, Tuesday, Thursday, and Friday) will be $10 per day,
and Wednesdays will be a free day.
We will offer a special sale price for seasonal passes until January 16, 2025. The
special will be a buy one full-price beach pass and get another pass free. Public
members are welcome to purchase as many season passes as they wish, but
only up to two free passes will be provided (you must buy two full-price passes
to receive two free passes).
STAFF RECOMMENDATION: To approve the modifications to the 2025 beach
parking rates as recommended.
Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve
the modifications to the 2025 beach parking rates as recommended.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, and Gorman
Nays: None
MOTION PASSES
J. Senior Municipal Funding FY25 Community & Neighborhood Services
To approve allocations of the Municipal Senior Millage funding to City programs
geared toward citizens who are 60 years of age, or older. An allocation of
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$122,780.00 from the County of Muskegon FY24 Municipal Senior Millage funding
is budgeted for the following programs;
Home Repairs (CNS): $102,780.00
Senior Power of Produce: $20,000.00
STAFF RECOMMENDATION: To approve the budget proposed for City of
Muskegon programs utilizing FY25 Municipal Senior Millage Funds from the
County of Muskegon.
Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve
the budget proposed for City of Muskegon programs utilizing FY25 Municipal
Senior Millage Funds from the County of Muskegon.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
M. Amity Bridge Removal MDOT Project Agreement Public Works
Staff requests authorization to enter into an agreement with the Michigan
Department of Transportation (MDOT) for the removal of the Amity Bridge,
including $433,208 in federal funding with $138,967 of local match for a total of
$599,250.
City staff submitted this project to the local bridge program several years ago
and multiple times, and in 2022 were informed the Amity Bridge Removal was
selected. The Engineering Department has worked with MDOT to develop
project plans, and the project agreement is ready to be executed. It is
included with this item, and is of the standard MDOT format.
STAFF RECOMMENDATION: To authorize staff to enter into an agreement with the
Michigan Department of Transportation (MDOT) for the removal of the Amity
Bridge, including $433,208 in Federal Funding with $138,967 of local match for a
total of $599,250.
Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to authorize
staff to enter into an agreement with the Michigan Department of Transportation
(MDOT) for the removal of the Amity Bridge, including $433,208 in Federal
Funding with $138,967 of local match for a total of $599,250.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
2024-102 PUBLIC HEARINGS
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A. Brownfield Plan Amendment, Lakeshore Hotel Partners, LLC, 181 and 201
Viridian Drive Economic Development
Lakeshore Hotel Partners, LLC has submitted a Brownfield Plan Amendment for
the Harbor 31 Hotel redevelopment at 181 and 201 Viridian Drive. The project
involves constructing a five-story hotel with 126 rooms, and 146 parking spaces.
The project site, located at 181 and 201 Viridian Drive, is currently vacant but
has a long history of industrial use dating back to the 1800s. This industrial activity
has left the property with various contaminants. The developer is in the process
of completing both a Phase I Environmental Site Assessment (ESA) and a
Baseline Environmental Assessment (BEA).
The contaminants identified on-site include benzo(a)pyrene, fluoranthene,
naphthalene, phenanthrene, arsenic, cadmium, chromium (total), copper,
lead, selenium, zinc, and nickel. Given the historical usage and the presence of
these contaminants, the property qualifies as an eligible property under the
Michigan Redevelopment Financing Act, Act 381 of 1996.
A Brownfield Plan has been established to reimburse both existing and
anticipated eligible costs to the developer. Tax increment revenues (TIR) will be
captured from local sources only to facilitate this reimbursement. The total cost
of eligible activities anticipated for reimbursement, inclusive of contingencies, is
estimated at $2,392,792. Additionally, the BRA administrative costs are expected
to be up to $364,771, with an estimated capture of TIR for the Local Brownfield
Revolving Fund (LBRF) up to $890,145.
Project Overview and Tax Increment Financing Plan
The redevelopment project, with an initial taxable value set at the 2024
combined amount of $200,800, is scheduled to begin construction in fall 2024
and reach completion by fall 2025. Upon completion, the taxable value of the
property is projected to increase to approximately $5,000,000.
Tax Increment Revenue (TIR) Collection
Tax increment revenue collection will commence within five years of the plan’s
adoption, it is anticipated to start as early as 2026. An estimated schedule of
captured taxable value by year is presented in Table 2 of the Brownfield Plan.
Reimbursements will be based on the actual tax increment realized. Once all
eligible expenses have been reimbursed, the Brownfield Redevelopment
Authority (BRA) may capture up to five additional years of tax increment
revenues to deposit into the Local Brownfield Revolving Fund (LBRF), or until the
total eligible activity costs are met, whichever is sooner.
Public Act 255 Commercial Redevelopment Act Tax Abatement
The project also seeks a 12-year tax abatement under Public Act 255, the
Commercial Redevelopment Act, to support the redevelopment efforts.
Plan Duration and Capture Timeline
The plan is designed to remain in place for 25 years or until all eligible activities
are fully reimbursed. If eligible costs are covered sooner, up to five additional
years of TIR capture may continue for LBRF funding. However, the maximum
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plan duration will not exceed 30 years.
Eligible Activities and Costs
The following are the estimated costs for eligible activities under this plan:
• Site Assessment and Baseline Environmental Assessment Activities: $20,000
• Site Demolition Activities: $10,000
• Due Care Activities: $370,000
• Site Preparation: $997,000
• Local Only Eligible Activities Subtotal: $1,397,000
• Contingency (15%): $205,050
• Interest Expense (5%): $770,742
• Brownfield Plan/Work Plan Preparation: $10,000
• Brownfield Plan/Work Plan Implementation: $10,000
Total Cost for Local Only Eligible Activities: $2,392,792
STAFF RECOMMENDATION: I motion to approve the resolution for the Brownfield
Plan Amendment for the Harbor 31 Hotel and authorize the City Mayor and City
Clerk to sign the resolution.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to close the
Public Hearing and approve the resolution for the Brownfield Plan Amendment
for the Harbor 31 Hotel and authorize the City Mayor and City Clerk to sign the
resolution.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
Mayor Johnson stated that there was an incident at a local business located at
Hackley and Barclay, vandalism of the owners vehicle. The act was abhorrent
and unacceptable. Wanted to acknowledge that this happened and
repudiate it and urge folks to support the business owner.
Commissioner Kilgo mentioned the City's leaf ordinance, leaves cannot be
raked into streets and alleys. Would like us to take a look at this issue.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
ADJOURNMENT
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The City Commission Meeting adjourned at 6:43 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
Page 10 of 10
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Cameras for City Hall and Police
Department
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
City staff have identified a need to update and improve our building security at City Hall.
Detailed Summary & Background:
Staff recommends we purchase a fully advanced, cloud-based solution providing us with 24/7
access to the cameras without the need to worry about the security challenges of hosting the
footage in-house. After going through product trials with multiple solutions, staff recommended
Verkada, the lowest-cost solution from Sentinel. The majority of the system will be purchased using a
$30,000 Election Security Grant received by the Clerk's Office and the remaining amount of $2,753.62
comes from the General Fund.
The action will require a budget amendment to both revenue and expenditures.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
$2,753.62 General Fund, $30,000 Grant Funded Yes No X N/A
Fund(s) or Account(s): Budget Amendment Needed:
General Fund Yes X No N/A
Recommended Motion:
Authorize staff to enter into an agreement to purchase the Verkada system in the amount of
$32,753.62.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information X
Page 196 of 369
Technology
Other Division Heads
Communication
Legal Review
Page 197 of 369
We have prepared a contract for you
City Hall Cameras
Budgetary Proposal # 007678
Prepared for:
City Of Muskegon
Jason Boes
jason.boes@shorelinecity.com
Page 198 of 369
Verkada Cameras 5YR
Product Description Qty Price Ext. Price
Verkada Hardware
Discount 1 ($4,000.00) ($4,000.00)
Angle Mount, 30 deg 1 $75.34 $75.34
PoE++ (802.3bt-2018) Injector, GigE, High Surge Protect, NA 2 $90.51 $181.02
CB62-E Outdoor Bullet Camera, 512GB, 30 Days Max 1 $909.61 $909.61
CD62 Indoor Dome Camera, 512GB, 30 Days Max 20 $757.92 $15,158.40
CD62-E Outdoor Dome Camera, 512GB, 30 Days Max 2 $859.04 $1,718.08
CF83-E Outdoor Fisheye Camera, 512GB, 30 Days Max $ 1 $909.61 $909.61
CH52-E Outdoor Multisensor Camera, 1TB, 30 Days Max 2 $1,819.72 $3,639.44
Shipping & Handling 1 $523.60 $523.60
Verkada Licensing
Initial Term: 60 Months | Requested Start Date: Upon Shipment | Billing Model: Prepaid | Renewal Term: Requote
5-Year Camera License 24 $454.55 $10,909.20
5-Year CH52 Multisensor Camera License 2 $1,364.66 $2,729.32
Solution Subscriptions - Unless explicitly indicated otherwise within this contract, the below term for these subscription services will automatically renew,
absent at least ninety (90) days’ notice of cancelation by Customer before the start of the renewal term. For subscription services that do not automatically renew,
Customer must provide Sentinel with at least ninety (90) days’ notice of its intention to renew the services and shall hold Sentinel harmless from any service
interruption to result from the cessation of services due to Customer’s failure to provide timely notice as stated herein.
Subtotal: $32,753.62
Confidential Information Property of Sentinel Technologies, Inc. 2
Page 199 of 369
Invoicing, General Terms and Assumptions
Hardware Invoicing
Upon Shipment
If over $100K, 50% deposit at time of order, will be invoiced in advance of shipment.
Subscription/License Invoicing
At the beginning of the contract - In Full
By issuing a purchase order in response to this quote or contract, Customer hereby agrees to be bound by the below terms and conditions, which shall prevail in
the event of a conflict with any terms and conditions included within Customer’s purchase order.
The manufacturer/support provider has the right to inspect any products that have either never had support coverage or have not had support coverage
for an extended period to determine their eligibility for maintenance/support. Devices subject to inspection will be flagged as such and are subject to a
non-refundable inspection fee, which shall be the responsibility of Customer. Sentinel will work with the manufacturer/support provider on Customer’s
behalf until device eligibility is determined. Devices that do not pass the inspection will be ineligible for support.
For products purchased pursuant to this agreement, Contractor agrees to provide storage at no additional charge for up to 90 days. If the storage period
exceeds 90 days, Customer agrees to the following: a.) Customer will be responsible to pay a fee of 2% per month for storage of purchased products
from that point forward, b.) Customer will be invoiced and will be responsible to pay the unpaid balance for any products purchased from Contractor that
have not been paid in full and, c.) Ownership will transfer from Contractor to Customer.
For all products purchased, it is assumed that prior to order execution with Contractor, Customer has reviewed, understood, and agreed to each
manufacturer’s respective terms and conditions governing the purchase of products, including, but not limited to, applicable warranties, order
cancellation, and return policies. In the event of a return request, Sentinel may assist Customer by facilitating the request between Customer and the
manufacturer. In addition, product return requests will be subject to Sentinel’s own return policies, which may include restocking fees and/or shipping and
handling costs.
Under no circumstances will Customer have the right to withhold payment to Sentinel due to an alleged breach of any express or implied warranties with
regard to the products purchased herein. Any such claim shall be handled directly between the manufacturer and Customer. If Contractor receives any
financial relief or incentives intended for Customer as a result of a settlement between Customer and the manufacturer, Contractor agrees to pass
through the incentives or financial relief to Customer.
Confidential Information Property of Sentinel Technologies, Inc. 3
Page 200 of 369
City Hall Cameras
Prepared by: Prepared for: Contract Information:
Sentinel Technologies, Inc City Of Muskegon Budgetary Proposal # 007678
Patrick Elkins 933 Terrace St Version: 4
pelkins@sentinel.com Muskegon, MI 49440-1348 Delivery Date: 11/21/2024
Jason Boes Expiration Date: 11/30/2024
+12317243345
jason.boes@shorelinecity.com
Quote Summary
Description Amount
Verkada Cameras 5YR $32,753.62
Total: $32,753.62
Taxes, shipping, handling and other fees may apply. We reserve the right to cancel orders arising from pricing or other errors.
Regarding the resale of any products, pricing may be subject to a manufacturer price increase before the expiration date of the quote.
Total Project - Project Total Cost is based on the combined purchase of all Hardware/Software, Professional Services and Solution
Maintenance from Sentinel as detailed in the attached Bill of Materials. Unbundling or materially reducing any of these essential elements of
the solution may result in modifications to the cost of the remaining elements.
Confidential Information Property of Sentinel Technologies, Inc. 4
Page 201 of 369
QUOTE: 2001824024749-01
DATE: 11/11/2024
PAGE: 1 of 2
TO: City of Muskegon FROM: Presidio Networked Solutions Group, LLC
Jason Boes Matt Boes
933 Terrance 625 Kenmoor Avenue
Muskegon, MI 49440 Suite 309
Grand Rapids, MI 49546
jason.boes@shorelinecity.com
(p) 231.724.3345 mortwineboes@presidio.com
(p) +1.616.871.1517
BILL TO: City of Muskegon SHIP TO: City of Muskegon
Jason Boes Jason Boes
933 Terrace St. 933 Terrace St.
Muskegon, MI 49440 Muskegon, MI 49440
jason.boes@shorelinecity.com jason.boes@shorelinecity.com
(p) 231.724.3345 (p) 231.724.3345
Customer#: CITYM041 Contract Vehicle: Michigan REMC SAVE 2024-27 Networking & Security
Contract
Account Manager: Matt Boes
Inside Sales Rep: Sandra Terrell
Title: Physec - Alta Cloud Camera System
Comments: *Pricing here is for camera equipment and licensing only. Cable and camera installation services have not been included.
# Part # Description Unit Price Qty Ext Price
1 15C-H5A-3MH-30 5MP; 30 Day; Alta; 3 head H5A Multisensor Camera; up to 10 year warranty $1,486.17 4.00 $5,944.68
with an active Aware license
2 12C-H5A-4MH-30 3MP; 30 Day; Alta; 4 head H5A Multisensor Camera; up to 10 year warranty $1,536.57 1.00 $1,536.57
with an active Aware license
3 9C-H5A-3MH-30 3MP; 30 Day; Alta; 3 head H5A Multisensor Camera; up to 10 year warranty $1,316.07 1.00 $1,316.07
with an active Aware license
4 5.0C-H6SL-BO1-IR-30 5MP; 30 Day; Alta; WDR; Day/Night Outdoor Bullet; 3.4-10.5mm f/1.6 $881.37 1.00 $881.37
Integrated IR; up to 10 year warranty with an active Aware license
5 3.0C-H6SL-D1-30 3MP; 30 Day; Alta; WDR; Day/Night Indoor Dome; 3.4-10.5mm f/1.6; up to 10 $465.57 14.00 $6,517.98
year warranty with an active Aware license
6 360-W-30 Ava cloud-native camera - 360 White. 12MP resolution. 30 days retention. AI- $881.37 2.00 $1,762.74
powered; IR and advanced microphone array; indoor and outdoor; up to 10
year warranty with an active Aware license.
7 CRNMT-1001 CORNER MNT FOR LRGE PENDT WLMT-1001 $91.35 4.00 $365.40
8 H5AMH-AD-PEND1 Outdoor pendant mount adapter. For use with the Avigilon H5A Multisensor $125.55 4.00 $502.20
9 WLMT-1001 Wall Mount for large pendant camera $76.43 4.00 $305.72
10 H5AMH-DO-COVR1 Dome bubble and cover; for outdoor surface mount or pendant mount; clear. $125.55 4.00 $502.20
For use with the Avigilon H5A Multisensor
11 H4AMH-DC-CPNL1 Drop Ceiling Metal Panel for H4 Multisensor $81.77 2.00 $163.54
12 H5AMH-AD-CEIL1 In-ceiling adapter; must order either a H5AMH-DC-COVR1 or H5AMH-DC- $111.51 2.00 $223.02
COVR1-SMOKE.
13 H5AMH-DC-COVR1 Dome bubble and cover; for in-ceiling mount; clear. For use with the Avigilon $55.43 2.00 $110.86
H5A Multisensor
14 H4AMH-AD-IRIL1 Optional IR illuminator ring; up to 30m (100ft); for use with H4AMH-DO-COVR1. $245.32 4.00 $981.28
15 POE60U-1BTE Gigabit 802.3bt 60 W PoE Injector; Indoor; single port $111.51 4.00 $446.04
16 AWA-CLD-5Y Alta Video Subscription; per camera; including 30 days cloud storage; 5 years $503.37 23.00 $11,577.51
Sub Total: $33,137.18
Page 202 of 369
QUOTE: 2001824024749-01
DATE: 11/11/2024
PAGE: 2 of 2
Shipping: $220.00
Grand Total: $33,357.18
This quote is governed by Terms and Conditions of REMC SAVE 2024-27 Networking & Security Contract
Standard-Terms-for-Purchase-of-Services or Goods
Quote valid for 30 days from date shown above.
All prices subject to change without notice. Supply subject to availability.
Purchase Order should be issued to:
Presidio Networked Solutions Group LLC
625 Kenmoor Avenue, Suite 309
Grand Rapids, MI 49546
Pursuant to this contract your PO must reflect the following contract:
REMC SAVE 2024-27 Networking & Security Contract
Tax ID# 76-0515249; Size Business: Large; CAGE Code: OKDO5; DUNS#15-405-0959; CEC 15-506005G
Credit: Net 30 days (all credit terms subject to prior Presidio credit department approval)
Delivery: FOB Terms Destination
Customer hereby authorizes and agrees to make timely payment for products delivered and services
rendered, including payments for partial shipments
Customer Signature Date
Page 203 of 369
We have prepared a contract for you
City Hall Cameras
Budgetary Proposal # 007678
Prepared for:
City Of Muskegon
Jason Boes
jason.boes@shorelinecity.com
Page 204 of 369
Meraki Cameras
Product Description Qty Price Ext. Price
Initial Term: 60 Months | Requested Start Date: Upon booking | Billing Model: Prepaid| Renewal Term: Requote
Solution Subscriptions - Unless explicitly indicated otherwise within this contract, the below term for these subscription services will automatically renew,
absent at least ninety (90) days’ notice of cancelation by Customer before the start of the renewal term. For subscription services that do not automatically renew,
Customer must provide Sentinel with at least ninety (90) days’ notice of its intention to renew the services and shall hold Sentinel harmless from any service
interruption to result from the cessation of services due to Customer’s failure to provide timely notice as stated herein.
MERAKI MV ENTERPRISE LICENSE AND SUPPORT 32 $580.91 $18,589.12
Meraki Varifocal Lens MV73 Dome, 8MP Outdoor Camera- 512GB 3 $999.47 $2,998.41
Meraki 360-degree MV93, Outdoor rated fish eye camera- 512GB 1 $908.56 $908.56
Meraki Varifocal Lens MV23 Dome, 8MP Indoor Camera- 512GB 20 $863.11 $17,262.20
WIDE ANGLE MV12 MINI DOME HD CAMERA WITH 8 $388.30 $3,106.40
Subtotal: $42,864.69
Confidential Information Property of Sentinel Technologies, Inc. 2
Page 205 of 369
Invoicing, General Terms and Assumptions
Hardware Invoicing
Upon Shipment
If over $100K, 50% deposit at time of order, will be invoiced in advance of shipment.
Subscription/License Invoicing
At the beginning of the contract - In Full
By issuing a purchase order in response to this quote or contract, Customer hereby agrees to be bound by the below terms and conditions, which shall prevail in
the event of a conflict with any terms and conditions included within Customer’s purchase order.
The manufacturer/support provider has the right to inspect any products that have either never had support coverage or have not had support coverage
for an extended period to determine their eligibility for maintenance/support. Devices subject to inspection will be flagged as such and are subject to a
non-refundable inspection fee, which shall be the responsibility of Customer. Sentinel will work with the manufacturer/support provider on Customer’s
behalf until device eligibility is determined. Devices that do not pass the inspection will be ineligible for support.
For products purchased pursuant to this agreement, Contractor agrees to provide storage at no additional charge for up to 90 days. If the storage period
exceeds 90 days, Customer agrees to the following: a.) Customer will be responsible to pay a fee of 2% per month for storage of purchased products
from that point forward, b.) Customer will be invoiced and will be responsible to pay the unpaid balance for any products purchased from Contractor that
have not been paid in full and, c.) Ownership will transfer from Contractor to Customer.
For all products purchased, it is assumed that prior to order execution with Contractor, Customer has reviewed, understood, and agreed to each
manufacturer’s respective terms and conditions governing the purchase of products, including, but not limited to, applicable warranties, order
cancellation, and return policies. In the event of a return request, Sentinel may assist Customer by facilitating the request between Customer and the
manufacturer. In addition, product return requests will be subject to Sentinel’s own return policies, which may include restocking fees and/or shipping and
handling costs.
Under no circumstances will Customer have the right to withhold payment to Sentinel due to an alleged breach of any express or implied warranties with
regard to the products purchased herein. Any such claim shall be handled directly between the manufacturer and Customer. If Contractor receives any
financial relief or incentives intended for Customer as a result of a settlement between Customer and the manufacturer, Contractor agrees to pass
through the incentives or financial relief to Customer.
Confidential Information Property of Sentinel Technologies, Inc. 3
Page 206 of 369
City Hall Cameras
Prepared by: Prepared for: Contract Information:
Sentinel Technologies, Inc City Of Muskegon Budgetary Proposal # 007678
Patrick Elkins 933 Terrace St Version: 4
pelkins@sentinel.com Muskegon, MI 49440-1348 Delivery Date: 12/11/2024
Jason Boes Expiration Date: 11/30/2024
+12317243345
jason.boes@shorelinecity.com
Quote Summary
Description Amount
Meraki Cameras $42,864.69
Total: $42,864.69
Taxes, shipping, handling and other fees may apply. We reserve the right to cancel orders arising from pricing or other errors.
Regarding the resale of any products, pricing may be subject to a manufacturer price increase before the expiration date of the quote.
Total Project - Project Total Cost is based on the combined purchase of all Hardware/Software, Professional Services and Solution
Maintenance from Sentinel as detailed in the attached Bill of Materials. Unbundling or materially reducing any of these essential elements of
the solution may result in modifications to the cost of the remaining elements.
Confidential Information Property of Sentinel Technologies, Inc. 4
Page 207 of 369
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: EGLE Grant Development Agreement, City
of Muskegon and Muskegon Limited Dividend
Housing Association, Lofts of Muskegon, 122 W.
Muskegon Ave.
Submitted by: Contessa Alexander, Development Department: Economic Development
Analyst
Brief Summary:
Muskegon Limited Dividend Housing Association has been invited to apply for an EGLE Grant in the
amount of $850,000 on behalf of the City of Muskegon.
Detailed Summary & Background:
Muskegon Limited Dividend Housing Association, LLC (the developer) has been invited to apply for
an EGLE Grant on behalf of the City of Muskegon (applicant) for the proposed Lofts of Muskegon
development located at 122 W. Muskegon Avenue. The grant request totals $850,000.
The site, last occupied by a fast-food restaurant from 1997 to 2015, is currently vacant. The proposed
redevelopment involves the construction of a 4-story multifamily affordable housing complex with 46
units, following the demolition of existing site features. The total private investment is estimated at
approximately $16 million, with the creation of two part-time jobs anticipated.
Due to its historical uses—including a gas station, battery storage shop, dry cleaner, and auto repair
shop—the site has documented contamination. Soil and soil gas samples collected from the property
reveal the presence of contaminants, necessitating the proper management of contaminated soil
and the implementation of a vapor mitigation system (VMS) to safeguard indoor air quality for future
residents. Grant funds will be utilized to cover the design and installation of the VMS and the removal
and proper disposal of contaminated soil generated during site demolition and redevelopment
(excluding the cost of excavation).
The project is expected to commence in March 2025, with completion anticipated by March 2026.
EGLE requires a development agreement between the applicant and the developer, outlining the
responsibilities of each party. A draft of the proposed development agreement is attached for
review.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Diverse housing types
Diversity reflected in businesses and business owners Improved reputation for inspections department
Micro-commercial areas in neighborhoods
Page 208 of 369
Retain youth within the city
Neighborhood commercial center development
Progress toward completion of ongoing economic development projects
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
N/A Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A
Recommended Motion:
I move to approve the EGLE grant development agreement between the City of Muskegon and
Muskegon Limited Dividend Housing Association, LLC, for the Lofts of Muskegon project at 122 W.
Muskegon Ave. and authorize the City Mayor to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 209 of 369
CITY OF MUSKEGON, MICHIGAN
BROWNFIELD REDEVELOPMENT GRANT AGREEMENT
This Brownfield Redevelopment Grant Agreement (the “Agreement”) made by the City of
Muskegon Brownfield Redevelopment Authority, a Michigan public body corporate whose
address is 933 Terrace Street, Muskegon, MI 49443 (the “Authority”), the City of Muskegon, a
Michigan municipal corporation, whose address is 933 Terrace St., Muskegon, Michigan 49440
(the “City”); the Muskegon Housing Commission (the “Sponsor”), and Muskegon Limited
Dividend Housing Association LLC, an Ohio company, with a business address of 9100 Centre
Pointe Drive, Suite 210, West Chester, Ohio 45069 (the “Developer”).
RECITALS
WHEREAS, Thethe Sponsor is a nonprofit member of the Developer, and the Developer
intends to develop the property in the City of Muskegon which is described on the attached
Exhibit A (the “Property”) and which, as defined by Part 201 of Michigan’s Natural Resources
and Environmental Protection Act (P.A. 451 of 1994, as amended), is an “eligible property” and
is therefore commonly referred to as a “brownfield”, and
WHEREAS, the City has applied for and expects to receive a $850,000 Michigan
Department of Environment, Great Lakes & Energy (EGLE, formerly Department of
Environmental Quality) Brownfield Redevelopment Grant (the “Grant Funds”), as authorized by
Part 196 of Michigan Public Act 451 of 1994 the Natural Resources and Environmental
Protection Act (the “Part 196”) on the behalf of the Developer; and
WHEREAS, pursuant to Part 196, Grant Funds are to be used to undertake cleanup of
brownfield sites by making low interest loans and grants to parties willing to undertake cleanup
of these sites; and that the LEDC is responsible for the administration of the Grant Funds; and
WHEREAS, the City intends to use the Grant Funds to reimburse costs incurred by the
Developer for undertaking certain work related to the assessment, investigation, remediation, and
mitigation of environmental contamination (the “Developer Eligible Activities”) in connection
with the redevelopment of the Property, per the Michigan Department of Environment, Great
Lakes & Energy (EGLE, formerly Department of Environmental Quality) Brownfield
Redevelopment Grant Contract (Project Name: Lofts of Muskegon, Location Code: NA,
Brennen J. Gorman [BG1] December
Tracking Code: NA) (“Grant Contract”), a copy of which is attached as Exhibit B, and approved
5, 2024 10:39 AM
EGLE Work Plan (together the “Project”). As part of the Project, the City may conduct certain If we could more clearly spell out the
eligible public infrastructure improvement activities as further described in the Work Plan (“City project itself, I think it would be beneficial.
Eligible Activities”).;
WHEREAS, to effectuate this reimbursement, the Grant Funds shall be funded by the
City to the Sponsor, which Sponsor is a member of the Developer, and the Sponsor shall
contribute or loan the Grant Funds (as determined by Developer’s tax counsel) to the Developer
to reimburse Developer Eligible Activities undertaken in accordance with the terms of this
Agreement.
1
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AGREEMENT
NOW THEREFORE, for good and valuable consideration including the mutual covenants of the
Parties made herein, the receipt and sufficiency of which consideration is hereby acknowledged,
the parties agree as follows:
1.0 Reimbursement Source.
1.1 During the Term (as defined below) of this Agreement, and subject to and as
provided by the terms and conditions of this Agreement, and subject to
determination by the City in its sole discretion that the Developer has sufficient
funding and the Project is otherwise likely to be completed and occupied, the
Authority agrees to use the Grant Funds to reimbursefund the Sponsor, which
shall effectuate the reimbursement of the Developer and City for for the costs of
their Eligible Activities, as defined by Part 196, per Grant Contract and Work
Plan, in an amount not to exceed the amount of the Grant. The amount
reimbursed to the Developer and City, respectively, for their Eligible Activities
shall not exceed the Total Grant Funds, and reimbursements shall be made on
approved costs submitted and approved in connection with the Developer Eligible
Activities and the City Eligible Activities, as follows:
1.1.1 the Authority shall pay 100% of available Grant Funds to the City until
McKinney, Emily [ME2] January 6,
such time as the City is paid in full for 100% of the City Eligible
2025 02:16 PM
Expenses; and Note to drafter: Can we get a determination
of how much this will be, so that we can
1.1.2 At such time as the City is paid in full for 100% of the City Eligible confirm if we have adequate funding for the
Developer’s project?
Expenses, the Authority shall pay 100% of available Grant Funds to
Developer to reimburse the cost of the remaining Developer Eligible
Activities submitted and approved for reimbursement by the Authority
until Developer is fully reimbursed.
1.2 The Developer accepts and agrees to the requirements and limitations stated in the
terms and conditions of the Grant Contract and Work Plan, a copy of which is
attached as Exhibit B, and which terms and conditions are incorporated herein by
reference. The Developer agrees to comply with such terms and conditions to the
extent same are under its control or influence, even though the Developer is not a
party to the Grant Contract, and to fully cooperate with the City in the City’s
efforts to comply with said terms and conditions.
2.0 Developer’s Indemnification. The Developer acknowledges that the City and Authority
will have certain obligations under the Grant Contract and Work Plan and agrees to
indemnify and hold harmless the City, its employees, officers, agents, and assigns for any
and all losses incurred by the City or Authority, including reasonable and actually
incurred attorney’s fees, related to the terms and conditions of the Grant Contract and
Work Plan, which losses are caused directly and proximately by the acts or omissions of
the Developer, its employees, officers, agents, and assigns. Both the Grant Contract and
2
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Work Plan are incorporated by reference upon their creation. Developer agrees to comply
with all conditions of the Grant Contract and Work Plan.
3.0 Developer Reimbursement Process.
3.1 The Developer, with the Sponsor’s consent,shall submit to the Authority, not
more frequently than on a quarterly basis, a “Request for Cost Reimbursement”
for Developer Eligible Activities paid for by the Developer during the prior
period. All costs for the Developer Eligible Activities must be consistent with the
approved Grant Contract and Work Plan. The Developer must include
documentation sufficient for the Authority to determine whether the costs
incurred were for Developer Eligible Activities, including detailed invoices and
proof of payment. Copies of all invoices for Developer Eligible Activities must
note what Developer Eligible Activities they support.
3.2 Unless the Authority disputes whether such costs are for Developer Eligible
Activities within thirty (30) days after receiving a Request for Cost Reimbursement from
the Developer, the Authority shall pay the DeveloperSponsor the amounts for which
submissions have been made pursuant to paragraph 1 of this Agreement, from which the
costs shall be wholly or partially paid from available Grant Funds. The Sponsor agrees to
accept such Grant Fund amounts and remit them to the Developer for reimbursement of
the approved costs. The Authority shall have no further liability with respect to the Grant
Funds after they have been funded to the Sponsor.
3.1.1 3.2.1 The Developer and Sponsor shall cooperate with the Authority’s
review of its Request for Cost Reimbursement by providing all
customarily required and necessary supplemental information and
documentation which may be reasonably requested by the Authority. The
Developer and Sponsor each agrees to provide to the Authority with all
information reasonably requested by the Authority.
3.1.2 3.2.2 If the Authority determines that requested costs are ineligible for
reimbursement, the Authority shall notify the Sponsor and Developer in
writing of its reasons for such ineligibility within the Authority’s thirty
(30) day period of review. The Developer and Sponsor shall then have
thirty (30) days to provide supplemental information or documents to the
Authority demonstrating that the costs are for Developer Eligible
Activities and are eligible for reimbursement.
3.2 3.3 The Authority is not required to reimburse the Sponsor or Developer from any
source other than Grant Funds.
3.3 3.4 The Authority shall send all payments to the Developer by registered or
certified mail, addressed to the Developer at the address shown below, or by
electronic funds transfer directly to the Developer's bank account. The Developer
may change its address by providing written notice sent by registered or certified
mail to the Authority.
3
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4.0 City Reimbursement Process.
4.1 The City shall submit to the Authority, not more frequently than on a quarterly
basis, a “Request for Cost Reimbursement” for City Eligible Activities paid for by
the City during the prior period. All costs for the City Eligible Activities must be
consistent with the approved Grant Contract and Work Plan. The City must
include documentation sufficient for the Authority to determine whether the costs
incurred were for City Eligible Activities, including detailed invoices and proof of
payment. Copies of all invoices for City Eligible Activities must note what City
Eligible Activities they support.
4.2 Unless the Authority disputes whether such costs are for City Eligible Activities
within thirty (30) days after receiving a Request for Cost Reimbursement from the
City, until such time as the City is paid in full for 100% of the City Eligible
Expenses, the Authority shall pay the City the amounts for which submissions
have been made pursuant to paragraph 4.2 of this Agreement in accordance with
the priority set forth in paragraph 1, from which the submission may be wholly or
partially paid from available Grand Funds.
4.2.1 The City shall cooperate with the Authority's review of its Request for
Cost Reimbursement by providing supplemental information and
documentation which may be reasonably requested by the Authority. The
City agrees to provide to the Authority with all information reasonably
requested by the Authority.
4.2.2 If the Authority determines that requested costs are ineligible for
reimbursement, the Authority shall notify the City in writing of its reasons
for such ineligibility within the Authority's thirty (30) day period of
review. The City shall then have thirty (30) days to provide supplemental
information or documents to the Authority demonstrating that the costs are
for City Eligible Activities and are eligible for reimbursement.
4.3 The Authority shall send all payments to the City by registered or certified mail,
addressed to the City at the address shown above, or by electronic funds transfer
directly to the City's bank account. The City may change its address by providing
written notice sent by registered or certified mail to the Authority.
5.0 Term. The Authority’s obligation to reimburse Developer and City for the Eligible
Activities incurred under this Agreement shall terminate earlier of the date when all
McKinney, Emily [ME3] January 6,
reimbursements to the Developer and City under this Agreement or for Eligible Activities
2025 02:39 PM
completed prior to December 31, 2027 (the “Term”). This Agreement is subject to the Parties to confirm this is adequate time.
approval and receipt of the Grant Funds. If the City’s grant application is not approved
and funded by EGLE then this Agreement shall be deemed null and void.
6.0 The Sponsor’s and Developer’s addresses are as follows:
4
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Developer:
Mail: 9100 Centre Pointe Drive, Suite 210
West Chester, Ohio 45069
Attn: J.P. Buckingham
Email: jp.buckingham@triterra.us
Phone: (517) 853-2151
Sponsor:
MAIL: 1080 Terrace Street
Muskegon, MI 49442-3346
Attn; [_____________________]
Email: [_____________________]
Phone: (231) 722-2647
7.0 The City’s addresses are as follows:
Mail: 601 Terrace St.
Muskegon, MI 49440
Attn: City Attorney
Email: john@parmenterlaw.com
Phone: 231-722-5401
7.0 Assignment. This Agreement and the rights and obligations under this Agreement shall not
be assigned or otherwise transferred by any party without the consent of the other parties,
which shall not be unreasonably withheld, conditioned or delayed, provided, however, the
Developer and City may assign their interest in this Agreement to an affiliateone of their
respective affiliates, as defined below without the prior written consent of the City if such
affiliate acknowledges its obligations to the City under this Agreement upon assignment in
writing on or prior to the effective date of such assignment. As used in this paragraph,
“affiliate” means any corporation, company, partnership, limited liability company, trust, sole
proprietorship or other entity or individual which (a) is owned or controlled by the Developer
or City (as applicable), (b) owns or controls the Developer or City (as applicable) or (c) is
under common ownership or control with the Developer or City (as applicable). This
Agreement shall be binding upon and inure to the benefit of any successors or permitted
assigns of the parties. Own, control and common ownership shall mean that not less than
80% of the ownership/control of the assignee is owned and controlled by Developer.
8.0 Miscellaneous.
8.1 All notices shall be given by registered or certified mail addressed to the parties at
their respective addresses as shown above. Any party may change the address by
written notice sent by registered or certified mail to the other party.
8.2 The headings preceding each section of this Agreement are for convenience of
reference only and shall not affect the construction or meaning of the provisions
hereof.
5
Page 214 of 369
8.3 If any part of this Agreement is found to be invalid or unenforceable, it shall not
affect any remaining portion of this Agreement, which shall continue to be in full
force and effect and be severable from any invalid provision.
8.4 This Agreement, including any exhibits hereto, constitutes the entire agreement
between the Parties and shall supersede any other agreements, written or oral, dated
prior to the execution of this Agreement. No provision of this Agreement may be
waived, changed, cancelled, modified or discharged orally, but only by an agreement
in writing and signed by the Party against whom enforcement of any waiver, change,
cancellation, modification or discharge is sought. This Agreement represents the
entire agreement between the Parties, and fully and completely sets forth all terms
and conditions of the transactions embodied in this Agreement.
8.5 No delay or failure by either party to exercise any right under this Agreement, and no
partial or single exercise of that right, constitutes a waiver of that or any other right,
unless otherwise expressly provided herein.
8.6 Except as otherwise provided in this Agreement, all representations, warranties,
covenants and agreements of the parties contained or made pursuant to this
Agreement shall survive the execution of this Agreement.
8.7 The recitals set forth above are incorporated by reference into the Agreement as if
fully set forth therein.
8.8 This Agreement may be executed in counterparts, each of which is an original and all
of which together constitute one and the same instrument.
8.9 This Agreement shall be binding upon, and inure to the benefit of and be enforceable
by, the Parties and their respective legal Representatives, permitted successors and
assigns.
8.10 The Parties hereby agree that this Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of Michigan without
giving reference to principles of conflict of laws. The state courts of the State of
Michigan shall have jurisdiction to hear and determine any dispute among the Parties
pertaining directly or indirectly to this Agreement or any matter arising therefrom,
and Developer expressly consents and submits in advance to such jurisdiction in any
action or proceeding commenced in such courts by either Party hereto. The Parties
agree that for purposes of any dispute in connection with this Agreement, the
Muskegon County Circuit Court shall have exclusive personal and subject matter
jurisdiction and venue.
(Signatures on the following page)
6
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The City – City of Muskegon Developer – Muskegon Limited Dividend Housing
Association, Ltd.
By: _______________________________
Name:
By: ___________________________ Title:
Name: Ken Johnson
Title: Mayor
By: ___________________________
Name: Ann Meisch
Title: Clerk
The Developer – Lofts of Muskegon Limited Dividend Housing Association LLC,
a Michigan limited liability company
By: PHP Lofts of Muskegon LLC,
an Ohio limited liability company
Its: Managing Member
By: Pivotal GP Holding LLC,
a Georgia limited liability company
Its: Sole Member
By:
Name:
Its: Authorized Signer
The Sponsor – Muskegon Housing Commission
By: _______________________________
Name:
Title:
7
Page 216 of 369
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
Land situated in the City of Muskegon, Muskegon County, Michigan:
Block 331, except the Easterly 59 feet thereof, and except the Northerly 175 feet thereof,
Revised Plat (of 1903) of the City of Muskegon, according to the Plat thereof, as recorded in
Liber 3 of Plats, Page 71.
Parcel #: 61-24-205-331-0001-00
Commonly known as: 122 W. Muskegon Avenue, Muskegon, MI 49440.
8
Page 217 of 369
EXHIBIT B
MICHIGAN DEPARTMENT OF ENVIRONMENT, GREAT LAKES & ENERGY
BROWNFIELD REDEVELOPMENT GRANT
9
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Summary report:
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Page 219 of 369
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Ordinance Change: Parental Responsibility
Ordinance - SECOND READ
Submitted by: Timothy Kozal, Public Safety Department: Public Safety
Director
Brief Summary:
The City of Muskegon's Parental Responsibility Ordinance, Chapter 54, Article VII, Section 54-218
needs to update its definition of juvenile from under the age of 17 years to under the age of 18 years
to follow State of Michigan law.
Detailed Summary & Background:
In 2021, in accordance with the Michigan Juvenile Justice Reform Act of 2018, the definition of
juvenile changed from age 17 and under to 18 and under in MCL Section 712A.1.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
Amount Requested: Budgeted Item:
N/A Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A
Recommended Motion:
I move to change the definition of minor in Chapter 54, Article VII, Section 54-218 of the Code of
Ordinances of the City of Muskegon to any juvenile under the age of 18.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Page 220 of 369
Communication
Legal Review
Page 221 of 369
Page 222 of 369
Michigan Supreme Court
State Court Administrative Office
Court Services Division
Michigan Hall of Justice
P.O. Box 30048
Lansing, Michigan 48909
Phone (517) 373-4835
MEMORANDUM
DATE: March 24, 2021
TO: Family Division Judges
Family Division Administrators
Circuit Court Administrators
FROM: Tanya Morrow, Management Analyst
RE: Public Act 389 of 2020 (SB 700)
Detainment of Status Offenders Who Violate a Valid Court Order
Part of the Juvenile Justice Reform Act of 2018 1 requires the state’s Juvenile Justice and
Delinquency Plans be modified to provide alternatives to detention, reduce the number of children
in secure detention and correctional facilities, and promote evidence-based programs and practices.
Public Act 389 of 2020 will bring the state into compliance with the requirements of the Juvenile
Justice Reform Act of 2018. It amends the Juvenile Code to address the detainment of status
offenders under the jurisdiction of the court who violate a valid court order. This legislation was
signed into law on January 4, 2021, and is effective April 4, 2021. This memo is intended to
provide a summary of the legislation and guidance to courts to assist with successful
implementation.
MCL 712A.1 amends the definition of juvenile to a person less than 18 years of age. This provides
for the change in age from 17 years of age to 18 years of age effective October 1, 2021.
Additionally, the amendments define the terms “public agency” and “secured facility”.
MCL 712A.15 amends the definition of the term “petition” to include a petition or supplemental
petition for violation of valid court order for status offenders.
MCL 712A.15(2) removes juveniles who have run away from the list of children who may be taken
into custody pending a hearing. Further, it adds status offenders who violate a valid court order to
the list of children who can be detained pending a hearing.
MCL 712A.15(3) provides that, if a juvenile is taken into custody for violating a valid court order,
as a status offender and is detained in a secure facility, the petitioner shall ensure that an
1
Juvenile Justice Reform Act of 2018
Page 223 of 369
March 24, 2021
Page 2
appropriately trained, licensed, or certified mental health or substance abuse professional interviews
the juvenile in person within 24 hours to assess their immediate mental health and substance abuse
needs. The assessment may be completed upon filing the petition, prior to any order for placement
in a secure facility. The law does not require the use of a specific assessment tool; however, the
Department of Health and Human Services (DHHS) recommends using CAFAS. 2 If the assessment
occurs while the juvenile is in secure detention, the cost of the assessment is reimbursable under the
Child Care Fund (CCF). If the assessment occurs before the juvenile’s placement in secure
detention, it may 3 be reimbursed under the CCF.
The petitioner must provide the assessment to the court within 48 hours of the placement, and the
court must conduct a hearing to determine if there is reasonable cause to believe that the juvenile
violated the court order and to determine their appropriate placement pending the alleged violation.
MCL 712A.18 provides additional procedures for courts to follow when a status offender who has
violated a valid court order is detained. The addition of MCL 712A.18(k) adds a requirement for
the court to include specific findings and language in a court order, if the court finds that a juvenile
status offender has violated a valid court order and orders the juvenile placed in secure detention.
In that case, the court order must include all of the following:
• The specific court order the juvenile violated;
• The factual basis for determining that the juvenile violated the court order;
• The court’s findings of fact to support a determination that there is no appropriate, less
restrictive alternative placement available considering the juvenile’s best interest;
• The length of time the juvenile may remain in the secure facility shall not exceed seven
days;
• The plan for the juvenile’s release from the facility; and
• A statement that the order cannot be renewed or extended.
The addition of MCL 712A.18(l) requires that upon a juvenile status offender’s second or
subsequent violation of a court order , the court must find both of the following have occurred:
• The juvenile violated a court order after the date the court issued the first order under
subdivision (k); and
• The court has procedures in place to ensure that a juvenile held in a secure facility is not in
custody more than seven days or the length of time authorized by the court, whichever is
shorter.
The State Court Administrative Office is working to address needed amendments to court rules,
procedures, and forms.
2
Functional Assessment Systems : Child And Adolescent Functional Assessment Scale - CAFAS (fasoutcomes.com)
3
If the assessment is ordered and the youth is not placed in a secured detention facility, the assessment would only be
reimbursable through the Child Care Fund if 1) the youth was already involved in an intensive In Home Care program
that budgeted for assessments; OR 2) the youth was placed in a community-based Juvenile Justice out-of-home care
placement, as the assessment could be reimbursed as a non-scheduled payment. These options are applicable only in
the event that no other fund source (Medicaid, private insurance, etc.) is available and the assessment is not ordered as a
competency evaluation. Contact DHHS for additional details regarding eligibility.
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City of Muskegon
Muskegon County, Michigan
Ordinance Amendment No. _____
THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 54, Article VII, Section 54-218 of the Code of Ordinances of the City of
Muskegon, Michigan, is amended as follows:
The following words, terms and phrases when used in this division, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
Criminal acts means those acts which violate statutes of the state or the ordinance of
the city.
Habitual offender means one who commits two or more criminal acts within a 12-
month period.
Minor means any juvenile under the age of 18 years residing with their parents.
Parent means mother, father, legal guardian or any other adult person having the care
or custody of a minor or with whom a minor may be found residing.
This ordinance adopted:
Ayes:
Nays:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: ______________________________
Ann Marie Meisch, MMC
City Clerk
1
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CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the day of , 2025, at which meeting a quorum
was present and remained throughout, and that the original of said ordinance is on file in the
records of the City of Muskegon. I further certify that the meeting was conducted, and public
notice was given, pursuant to and in full compliance with Act No. 267, Public Acts of Michigan
of 1976, as amended, and that minutes were kept and will be or have been made available as
required thereby.
DATED: , 2025 ______________________________
Ann Marie Meisch, MCC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on _______, 2025 the City Commission of the City of Muskegon
amended Section 54-28 of Chapter 54, Article VII, “Offenses and Miscellaneous Provisions”,
whereby the following change was made:
1. Chapter 54, Article VII, Section 54-281 was amended to define minor as any juvenile
under the age of 18.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City
Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this publication.
CITY OF MUSKEGON
Published: _________________, 2025 By: ______________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
3
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Amity Bridge Resolution
Submitted by: Dan VanderHeide, Public Works Department: Public Works
Director
Brief Summary:
Staff requests adoption of a resolution authorizing the DPW Director and Clerk to sign the Amity
Bridge Removal (and Reconstruction) Contract with MDOT.
Detailed Summary & Background:
On December 10, 2024 the City Commission approved the attached contract with the Michigan
Department of Transportation to fund removal of the Amity Avenue Bridge and to build a new
roadway in the same place. While the contract was approved on the 10th, MDOT requests that the
individuals that are authorized to sign the contract be specifically named in a resolution. The
attached resolution satisfies that requirement and will allow staff to sign the approved contract.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Decrease infrastructure burden on residents
Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Maximized efficient use of existing infrastructure
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
To adopt the following resolution authorizing the DPW Director and Clerk to sign the Amity Bridge
Removal (and Reconstruction) Contract with MDOT.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
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Other Division Heads
Communication
Legal Review
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RESOLUTION __________
RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE
MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF
MUSKEGON FOR THE REMOVAL OF THE STRUCTURE #7699, WHICH
CARRIES AMITY AVENUE OVER THE ABANDONED RAILROAD GRADE,
SECTION 20, T10N, R16W, CITY OF MUSKEGON, MUSKEGON COUNTY,
MICHIGAN; INCLUDING EARTHWORK, HOT MIX ASPHALT PAVEMENT
RECONSTRUCTION, CONCRETE CURB AND GUTTER, CURB RAMPS, STORM
SEWER AND PERMANENT SIGNING; AND ALL TOGETHER WITH NECESSARY
RELATED WORK.
Moved by Commissioner ________________ and supported by Commissioner
______________ the following Resolution be adopted:
WHEREAS, entry by the City of Muskegon into Contract no. 24-5478 between the
Michigan Department of Transportation and the City of Muskegon for the Removal
of the Amity Avenue Bridge and Reconstruction of Amity Avenue from Myrtle
to Fork within the City is in the best interests of the City of Muskegon.
RESOLVED, that entry by the City into Contract Agreement Number 24-5478 be and
the same is hereby authorized and approved and the DPW Director and Clerk are
authorized to execute said contract for and on behalf of the City of Muskegon.
Adopted this 14th Day of January, 2025.
BY
Dan VanderHeide, Director of Public Works
ATTEST
Ann Meisch, City Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on
June 13, 2023. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
By___________________________
Ann Meisch, City Clerk
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LOCAL BRIDGE CAB
FEDERAL Control Section BO 61000
Job Number 218168CON
Project 25A0043
Structure #7699
CFDA No. 20.205 (Highway
Research Planning
& Construction)
Contract No. 24-5478
PART I
THIS CONTRACT, consisting of PART I and PART II (Standard Agreement
Provisions), is made by and between the MICHIGAN DEPARTMENT OF
TRANSPORTATION, hereinafter referred to as the "DEPARTMENT"; and the CITY
OF MUSKEGON, a Michigan municipal corporation, hereinafter referred to as the
"REQUESTING PARTY"; for the purpose of fixing the rights and obligations of the
parties in agreeing to the following improvements, in Muskegon, Michigan, hereinafter
referred to as the "PROJECT" and estimated in detail on EXHIBIT "I", dated November
15, 2024, attached hereto and made a part hereof:
PART A – FEDERAL AND STATE PARTICIPATION
The removal of the structure #7699, which carries Amity Avenue over the
abandoned railroad grade, Section 20, T10N, R16W, City of Muskegon,
Muskegon County, Michigan; including earthwork, hot mix asphalt pavement
reconstruction, concrete curb and gutter, curb ramps, storm sewer and permanent
signing; and all together with necessary related work.
PART B – NO FEDERAL OR STATE PARTICIPATION
Sanitary sewer and concrete sidewalk along the limits as described in PART A;
and all together with necessary related work.
WITNESSETH:
WHEREAS, pursuant to Federal and State law, monies have been provided for
the performance of certain improvements on public roads; and
WHEREAS, the reference "FHWA" in PART I and PART II refers to the United
States Department of Transportation, Federal Highway Administration; and
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WHEREAS, the PROJECT, or portions of the PROJECT, at the request of the
REQUESTING PARTY, are being programmed with the FHWA, for implementation
with the use of Federal funds under the following Federal program:
SECTION 144 OF TITLE 23 USC
(HIGHWAY BRIDGE REPLACEMENT AND REHABILITATION PROGRAM)
WHEREAS, the PROJECT has been approved for financing in part with funds
appropriated to the Local Bridge Fund pursuant to Section 10(5) of Act 51, Public Acts
of 1951, as amended, for the state Local Bridge Program; and
WHEREAS, the parties hereto have reached an understanding with each other
regarding the performance of the PROJECT work and desire to set forth this
understanding in the form of a written contract.
NOW, THEREFORE, in consideration of the premises and of the mutual
undertakings of the parties and in conformity with applicable law, it is agreed:
1. The parties hereto shall undertake and complete the PROJECT in
accordance with the terms of this contract.
2. The term "PROJECT COST", as herein used, is hereby defined as the
cost of the physical construction necessary for the completion of the PROJECT,
including any other costs incurred by the DEPARTMENT as a result of this contract,
except for construction engineering and inspection.
No charges will be made by the DEPARTMENT to the PROJECT for any
inspection work or construction engineering.
The costs incurred by the REQUESTING PARTY for preliminary engineering,
construction engineering, construction materials testing, inspection, and right-of-way are
excluded from the PROJECT COST as defined by this contract.
The Michigan Department of Environment, Great Lakes, and Energy has
informed the DEPARTMENT that it adopted new administrative rules (R 325.10101, et.
seq.) which prohibit any governmental agency from connecting and/or reconnecting lead
and/or galvanized service lines to existing and/or new water main. Questions regarding
these administrative rules should be directed to the Michigan Department of
Environment, Great Lakes, and Energy. The cost associated with replacement of any
lead and/or galvanized service lines, including but not limited to contractor claims, will
be the sole responsibility of the REQUESTING PARTY.
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3. The DEPARTMENT is authorized by the REQUESTING PARTY to
administer on behalf of the REQUESTING PARTY all phases of the project including
advertising and awarding the construction contract for the PROJECT. Such
administration shall be in accordance with PART II Section II of this contract.
Any items of the PROJECT COST incurred by the DEPARTMENT may be
charged to the PROJECT.
4. The REQUESTING PARTY, at no cost to the PROJECT or to the
DEPARTMENT, shall:
A. Design or cause to be designed the plans for the PROJECT.
B. Appoint a project engineer who shall be in responsible charge of
the PROJECT and ensure that the plans and specifications are
followed.
C. Perform or cause to be performed the construction engineering,
construction materials testing, and inspection services necessary
for the completion of the PROJECT.
5. The PROJECT COST shall be met in accordance with the following:
PART A
The PART A portion of the PROJECT COST shall be met in part by
Federal Funds and by state Local Bridge Funds. Upon final settlement of
costs, Federal Funds will be applied to the eligible items of the PART A
portion of the PROJECT COST. The state Local Bridge Funds will be
applied to the balance of the PROJECT COST for PART A, after
deduction of Federal Funds, such that the combined Federal Funds and
state Local Bridge Funds shall equal 85 percent of those PROJECT
COSTS for PART A eligible for participation by such funds. The
remaining 15 percent of the eligible items of the PART A portion of the
PROJECT COST, as well as any ineligible items of PROJECT COST,
shall be paid 100 percent by the REQUESTING PARTY in the manner
and at the times hereinafter set forth.
PART B
The PART B portion of the PROJECT COST is not eligible for Federal
or State participation and shall be charged to and paid 100 percent by the
REQUESTING PARTY in the manner and at the times hereinafter set
forth.
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Any items of PROJECT COST not reimbursed by Federal Funds or paid by state
Local Bridge Funds will be the sole responsibility of the REQUESTING PARTY.
6. No working capital deposit will be required for this PROJECT.
In order to fulfill the obligations assumed by the REQUESTING PARTY under
the provisions of this contract, the REQUESTING PARTY shall make prompt payments
of its share of the PROJECT COST upon receipt of progress billings from the
DEPARTMENT as herein provided. All payments will be made within 30 days of
receipt of billings from the DEPARTMENT. Billings to the REQUESTING PARTY
will be based upon the REQUESTING PARTY'S share of the actual costs incurred less
Federal Funds and State Funds earned as the PROJECT progresses.
7. Upon completion of construction of the PROJECT, the REQUESTING
PARTY will promptly cause to be enacted and enforced such ordinances or regulations
as may be necessary to prohibit parking in the roadway right-of-way throughout the
limits of the approaches being constructed as a part of the PROJECT.
8. The performance of the entire PROJECT under this contract, whether
Federally funded or not, will be subject to the provisions and requirements of PART II
that are applicable to a Federally funded project.
In the event of any discrepancies between PART I and PART II of this contract,
the provisions of PART I shall prevail.
Buy America Requirements (23 CFR 635.410) shall apply to the PROJECT and
will be adhered to, as applicable, by the parties hereto.
9. The REQUESTING PARTY certifies that it is not aware if and has no
reason to believe that the property on which the work is to be performed under this
agreement is a facility, as defined by the Michigan Natural Resources and Environmental
Protection Act [(NREPA), PA 451, 1994, as amended 2012]; MCL 324.20101(1)(s).
The REQUESTING PARTY also certifies that it is not a liable party pursuant to either
Part 201 or Part 213 of NREPA, MCL 324.20126 et seq. and MCL 324.21323a et seq.
The REQUESTING PARTY is a local unit of government that has acquired or will
acquire property for the use of either a transportation corridor or public right-of-way and
was not responsible for any activities causing a release or threat of release of any
hazardous materials at or on the property. The REQUESTING PARTY is not a person
who is liable for response activity costs, pursuant to MCL 324.20101 (vv) and (ww).
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10. If, subsequent to execution of this contract, previously unknown
hazardous substances are discovered within the PROJECT limits, which require
environmental remediation pursuant to either state or federal law, the REQUESTING
PARTY, in addition to reporting that fact to the Michigan Department of Environment,
Great Lakes, and Energy, shall immediately notify the DEPARTMENT, both orally and
in writing of such discovery. The DEPARTMENT shall consult with the
REQUESTING PARTY to determine if it is willing to pay for the cost of remediation
and, with the FHWA, to determine the eligibility, for reimbursement, of the remediation
costs. The REQUESTING PARTY shall be charged for and shall pay all costs associated
with such remediation, including all delay costs of the contractor for the PROJECT, in
the event that remediation and delay costs are not deemed eligible by the FHWA. If the
REQUESTING PARTY refuses to participate in the cost of remediation, the
DEPARTMENT shall terminate the PROJECT. The parties agree that any costs or
damages that the DEPARTMENT incurs as a result of such termination shall be
considered a PROJECT COST.
11. If federal and/or state funds administered by the DEPARTMENT are
used to pay the cost of remediating any hazardous substances discovered after the
execution of this contract and if there is a reasonable likelihood of recovery, the
REQUESTING PARTY, in cooperation with the Michigan Department of Environment,
Great Lakes, and Energy and the DEPARTMENT, shall make a diligent effort to recover
such costs from all other possible entities. If recovery is made, the DEPARTMENT
shall be reimbursed from such recovery for the proportionate share of the amount paid
by the FHWA and/or the DEPARTMENT and the DEPARTMENT shall credit such
sums to the appropriate funding source.
12. The DEPARTMENT'S sole reason for entering into this contract is to
enable the REQUESTING PARTY to obtain and use funds provided by the Federal
Highway Administration pursuant to Title 23 of the United States Code and/or State
Funds.
Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, and any
inspections of work by the DEPARTMENT pursuant to the terms of this contract are
done to assist the REQUESTING PARTY in meeting program guidelines in order to
qualify for available funds. Such approvals, reviews, inspections and recommendations
by the DEPARTMENT shall not relieve the REQUESTING PARTY and the local
agencies, as applicable, of their ultimate control and shall not be construed as a warranty
of their propriety or that the DEPARTMENT is assuming any liability, control or
jurisdiction.
The providing of recommendations or advice by the DEPARTMENT does not
relieve the REQUESTING PARTY and the local agencies, as applicable, of their
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exclusive jurisdiction of the highway or bridge structure(s) and responsibility under
MCL 691.1402 et seq., as amended.
When providing approvals, reviews and recommendations under this contract,
the DEPARTMENT is performing a governmental function, as that term is defined in
MCL 691.1401 et seq., as amended, which is incidental to the completion of the
PROJECT.
Upon completion of the PROJECT, the REQUESTING PARTY shall accept the
facilities constructed as built to specifications within the contract documents. It is
understood that the REQUESTING PARTY shall own the facilities and shall operate
and maintain the facilities in accordance with all applicable Federal and State laws and
regulations, including, but not limited to, Title II of the Americans with Disabilities Act
(ADA), 42 USC 12131 et seq., and its associated regulations and standards, and
DEPARTMENT Road and Bridge Standard Plans and the Standard Specifications for
Construction.
13. The DEPARTMENT, by executing this contract, and rendering services
pursuant to this contract, has not and does not assume jurisdiction of the highway or
bridge structure(s), described as the PROJECT, for purposes of MCL 691.1402 et seq.,
as amended. Exclusive jurisdiction of such highway for the purposes of MCL 691.1402
et seq., as amended, rests with the REQUESTING PARTY and other local agencies
having respective jurisdiction.
14. The REQUESTING PARTY shall approve all of the plans and
specifications to be used on the PROJECT and shall be deemed to have approved all
changes to the plans and specifications when put into effect. It is agreed that ultimate
responsibility and control over the PROJECT rests with the REQUESTING PARTY and
local agencies, as applicable.
15. The REQUESTING PARTY agrees that the costs reported to the
DEPARTMENT for this contract will represent only those items that are properly
chargeable in accordance with this contract. The REQUESTING PARTY also certifies
that it has read the contract terms and has made itself aware of the applicable laws,
regulations, and terms of this contract that apply to the reporting of costs incurred under
the terms of this contract.
16. Each party to this contract will remain responsible for any and all claims
arising out of its own acts and/or omissions during the performance of the contract, as
provided by this contract or by law. In addition, this is not intended to increase or
decrease either party’s liability for or immunity from tort claims. This contract is also
not intended to nor will it be interpreted as giving either party a right of indemnification,
either by contract or by law, for claims arising out of the performance of this contract.
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17. The parties shall promptly provide comprehensive assistance and
cooperation in defending and resolving construction claims brought against the
DEPARTMENT by the contractor, vendors or suppliers as a result of the
DEPARTMENT'S award of the construction contract for the PROJECT. Costs incurred
by the DEPARTMENT in defending or resolving such claims shall be reasonable and
necessary and shall be considered PROJECT COSTS.
18. The DEPARTMENT shall require the contractor who is awarded the
contract for the construction of the PROJECT to provide insurance in the amounts
specified and in accordance with the DEPARTMENT'S current Standard Specifications
for Construction, and to:
A. Maintain bodily injury and property damage insurance for the
duration of the PROJECT.
B. Provide owner's protective liability insurance naming as insureds
the State of Michigan, the Michigan State Transportation
Commission, the DEPARTMENT, and its officials, agents and
employees, the REQUESTING PARTY and any other county,
county road commission, or municipality in whose jurisdiction
the PROJECT is located, and their employees, for the duration of
the PROJECT and to provide, upon request, copies of certificates
of insurance to the insureds. It is understood that the
DEPARTMENT does not assume jurisdiction of the highway
described as the PROJECT as a result of being named as an
insured on the owner’s protective liability insurance policy.
C. Comply with the requirements of notice of cancellation and
reduction of insurance set forth in the current standard
specifications for construction and to provide, upon request,
copies of notices and reports prepared to those insured.
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19. This contract shall become binding on the parties hereto and of full force
and effect upon the signing thereof by the duly authorized officials for the parties hereto;
upon the adoption of the necessary resolution approving said contract and authorizing
the signatures thereto of the respective officials of the REQUESTING PARTY, a
certified copy of which resolution shall be attached to this contract; and with approval
by the State Administrative Board.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be
executed as written below.
CITY OF MUSKEGON MICHIGAN DEPARTMENT
OF TRANSPORTATION
By__________________________ By_________________________
Title: for Department Director MDOT
By__________________________
Title:
REVIEWED
By Larry Doyle at 8:09 am, 12/4/24
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November 15, 2024
EXHIBIT I
CONTROL SECTION BO 61000
JOB NUMBER 218168CON
PROJECT 25A0043
STRUCTURE #7699
TOTAL FEDERAL STATE LOCAL TOTAL BALANCE
ESTIMATED FUNDS BRIDGE FUNDS FEDERAL & REQ. PARTY'S
COST (EST 80%) (EST 5%) STATE AID SHARE
PART A - STRUCTURE AND APPROACH WORK
(FEDERAL AND STATE PARTICIPATION)
Construction (Contracted) $541,510 $433,208 $27,075 $460,283 $81,227
PART B – NAMEPLATE INSTALLATION WORK
(NO FEDERAL OR STATE PARTICIPATION)
Construction (Contracted) $57,740 $0 $0 $0 $57,740
GRAND TOTAL $599,250 $433,208 $27,075 $460,283 $138,967
NO DEPOSIT REQUIRED
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Downtown Development Authority On-
Premises Liquor License- Puerto Vallarta Mexican
Grill and Bar, LLC, 292 W. Western Ave. Ste. 103
Submitted by: Contessa Alexander, Development Department: Economic Development
Analyst
Brief Summary:
Puerto Vallarta Mexican Grill and Bar, LLC, is requesting a Downtown Development Authority On-
Premise Liquor License for the building at 292 W. Western Ave. Ste. 103. The Liquor Control Commission
allows for additional liquor licenses within Downtown Development Authority Districts under certain
conditions.
Detailed Summary & Background:
Puerto Vallarta Mexican Grill and Bar, LLC, is seeking approval for a Downtown Development
Authority (DDA) On-Premise Liquor License for their location at 292 W. Western Ave., Suite 103. This
type of license is specifically designed to support economic development and promote vibrant,
thriving downtown districts.
Under Michigan law, the Liquor Control Commission permits the issuance of additional liquor licenses
within designated Downtown Development Authority Districts. These licenses are granted under
certain conditions, including alignment with the DDA’s goals for economic revitalization,
enhancement of the district’s character, and promotion of tourism and local business growth.
Approval of this request would enable Puerto Vallarta Mexican Grill and Bar to serve alcoholic
beverages at their establishment, further contributing to the appeal of the downtown area as a
dining and entertainment destination. The license is a vital tool for attracting and retaining businesses
that foster a dynamic and engaging environment for residents and visitors alike.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Progress toward completion of ongoing economic development projects
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Amount Requested: Budgeted Item:
N/A
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Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A
Recommended Motion:
I move to approve the request from Puerto Vallarta Mexican Grill and Bar, LLC, for a Downtown
Development Authority On-Premise Liquor License at 292 W. Western Ave., Suite 103, and to forward
this approval to the Michigan Liquor Control Commission for their consideration.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 261 of 369
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. _________
A resolution concerning the issuance of a Downtown Development Authority
District On-Premises Liquor License pursuant to 436.1521a(1)(b) of the Michigan
Compiled Laws.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
1. Puerto Vallarta Mexican Grill and Bar, LLC has applied for a Downtown
Development Authority District On-Premises Liquor License for the premises at
292 W Western Ave. Ste. 103, which is located within an area established by the
City Commission as a redevelopment project area pursuant to 436.1521a(1)(b) of
the Michigan Compiled Laws.
2. It is required that the City Commission approve a specific applicant, at a specific
location “ABOVE ALL OTHERS”.
3. This resolution was approved at the regular meeting of the City Commission on
January 14, 2025.
City Commission Findings
The City Commission is satisfied that:
1. That the applicant has sufficiently demonstrated a commitment for a capital
investment of not less than $75,000 for the build-out and improvements of the
building that will house the licensed premises, which amounts shall be expended
before the issuance of the license.
2. That the licensed business shall be engaged in dining, entertainment or recreation,
that is open to the general public, with a seating capacity of not less than 50
persons.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
The City Commission deems it to be in the best interest of the City of Muskegon
to approve the application of Puerto Vallarta Mexican Grill and Bar, LLC, for a
Downtown Development Authority District On-Premises Liquor License for the
premises at 292 W Western Ave Ste 103, pursuant to 436.1521a(1)(b) of the
Michigan Compiled Laws, and recommends to the Michigan Liquor Control
Commission the issuance of said requested license “ABOVE ALL OTHERS”.
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Adopted this 14th day of January, 2025.
AYES: ______________________________________________________
NAYES: ______________________________________________________
ABSENT: ______________________________________________________
By: ________________________
Ken Johnson
Mayor
By: ________________________
Ann Meisch,
City Clerk
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Michigan Department of Licensing and Regulatory Affairs Business ID:
Liquor Control Commission (MLCC)
Toll Free: 866-813-0011 • www.michigan.gov/lcc Request ID:
(For MLCC use only)
Local Government Approval
(Authorized by MCL 436.1501)
Instructions for Applicants:
• You must obtain a recommendation from the local legislative body for a new on-premises license application, certain types of license
classification transfers, and/or a new banquet facility permit.
Instructions for Local Legislative Body:
• Complete this resolution or provide a resolution, along with certification from the clerk or adopted minutes from the meeting at
which this request was considered.
At a meeting of the council/board
(regular or special) (name of township, city, village)
called to order by on at
(date) (time)
the following resolution was offered:
Moved by and supported by
that the application from
(name of applicant - if a corporation or limited liability company, please state the company name)
for the following license(s):
(list specific licenses requested)
to be located at:
and the following permit, if applied for:
Banquet Facility Permit Address of Banquet Facility:
It is the consensus of this body that it this application be considered for
(recommends/does not recommend)
approval by the Michigan Liquor Control Commission.
If disapproved, the reasons for disapproval are
Vote
Yeas:
Nays:
Absent:
I hereby certify that the foregoing is true and is a complete copy of the resolution offered and adopted by the
council/board at a meeting held on (name of township,
city, village)
(regular or special) (date)
Print Name of Clerk Signature of Clerk Date
Under Article IV, Section 40, of the Constitution of Michigan (1963), the Commission shall exercise complete control of the alcoholic beverage traffic
within this state, including the retail sales thereof, subject to statutory limitations. Further, the Commission shall have the sole right, power, and duty to
control the alcoholic beverage traffic and traffic in other alcoholic liquor within this state, including the licensure of businesses and individuals.
Please return this completed form along with any corresponding documents to:
Michigan Liquor Control Commission
Mailing address: P.O. Box 30005, Lansing, MI 48909
Overnight packages: 2407 N. Grand River, Lansing, MI 48906
Fax to: 517-763-0059
LCC-106 (04/24) LARA is an equal opportunity employer/program.Auxiliary aids, services and other reasonable accommodations are available upon request to individuals with disabilities.
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· Downtown Development Authority (DDA)
Tax Increment Financing Authority (TIFA)
RIVE
R ST
R EET
(VAC
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Rezoning of 1727 Beidler St.
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
Request to rezone 1727 Beidler Street from Neighborhood Residential (R) to Form-Based Code,
Neighborhood Edge (FBC-NE).
Detailed Summary & Background:
1. The property measures 84’ wide x 100’ deep (8,400 sf).
2. The property is zoned R, Neighborhood Residential, but it contains a commercial structure on site.
The building measures 1,472 sf and is used for storage for a construction company. The use is
considered legally, non-conforming.
3. The zoning allows for legally non-conforming uses to be increased in size with a special use permit,
but only up to 25% of the size of the existing building. The property is considered a double lot and has
enough space for a larger addition. The applicant would like to at least double the size of the
building
4. The FBC, NE designation would allow this retail-type building to be expanded as long as it meets
the setback requirements (10 feet rear/ 3 feet sides). The rezoning would also make the storage use
legally conforming.
5. The property is located just north of the business district on Laketon Ave and is near other mixed-
use buildings on Beidler St.
6. Although the property is small in size, staff and the Planning Commission do not believe this request
to be considered a spot zone. A "Findings of Facts" exercise was conducted at the Planning
Commission meeting to determine that it was not considered a spot zone.
7. The Planning Commission unanimously recommended in favor of the rezoning request (6-0, 3
absent).
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
Page 270 of 369
N/A Yes No N/A X
Recommended Motion:
I move to approve the request to rezone the property at 1727 Beidler Street from Neighborhood
Residential to Form-Based Code, Neighborhood Edge.
Approvals: Guest(s) Invited / Presenting:
Immediate Division X
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Page 271 of 369
Planning Commission Staff Report Excerpt
December 12, 2024
Hearing, Case 2024-35: Request to rezone 1727 Beidler Street from R-1, Neighborhood Residential, to Form-
Based Code, Neighborhood Edge, FBC-NE.
SUMMARY
1. The property measures 84’ wide x 100’ deep (8,400 sf).
2. The property is zoned R-1, Neighborhood Residential, but it contains a commercial structure on site.
The building measures 1,472 sf and is used for storage for a construction company. The use is
considered legally, non-conforming.
3. The zoning allows for legally non-conforming uses to be increased in size with a special use permit,
but only up to 25% of the size of the existing building. The property is considered a double lot and has
enough space for a larger addition. The applicant would like to at least double the size of the building.
4. The FBC, NE designation would allow this retail-type building to be expanded as long as it meets the
setback requirements (10 feet rear/ 3 feet sides). The rezoning would also make the storage use legally
conforming.
5. The property is located just north of the business district on Laketon Ave and is near other mixed-use
buildings on Beidler St.
6. Please see the enclosed zoning ordinance excerpt for FBC, NE.
7. Notification was sent to every property within 300 feet of this address. At the time of this writing, staff
had not received any public comments.
1727 Beidler St
1
Page 272 of 369
Zoning Map
Aerial Map
2
Page 273 of 369
STAFF RECOMMENDATION
Staff recommends approval of the rezoning request. This legally, non-conforming use is located near other
legally, conforming uses just north of the main business district. These historically commercial and mixed-use
buildings should be protected by a zoning designation that allows for their continued uses, while also protecting
the neighborhood from unreasonable uses and expansions. Staff believes the FBC, NE designation is a great
fit for this entire section of Beidler St and recommends approval of this request as well as looking into rezoning
the other mixed-use buildings across the street to create a northern leg to the business district. The master plan
recommends increasing neighborhood commercial options throughout the City, specifically in this identified
commercial node.
Improperly Zoned Commercial Properties on Beidler between Laketon and Dale
3
Page 274 of 369
Notes on the Spot Zoning Exercise
M. Franzak: We have some handouts in front of you because we may have some questions about whether this is a spot
zoning, we don’t believe this is a spot zone. The MSU Extension has created a pretty good definition of a spot zone, even
though one doesn’t really exist. So we have four criteria that we can talk about and how they meet or don’t meet some
of these, but it’s staff's recommendation that this would not be considered a spot zone and that we would be in favor of
the rezoning. There is also a handout for everyone from the recently approved Master Plan, this is from the Economic
Development section. Bullet point E2.5 talks about this, which is another reason why we would not consider it a spot
zone because it’s in alignment with the Master Plan. The second paragraph speaks to the issue of how zoning
regulations should encourage the re-utilization of existing buildings through expanding their footprints and increasing
permitted uses. Currently, inappropriate zoning designations have led to vacant or underutilized commercial and
industrial buildings located away from traditional neighborhood corridors and the interior of the neighborhood.
Public Hearing Closed.
J. Seyferth: So as the Planning staff pointed out, the MSU Extension has four criteria that should be considered when
looking at if something is a spot zone, or not. For the record, these four questions will be reflected in the minutes, it
does say that the circumstances in question must satisfy the following four criteria. Not just one, or a combination, but
all criteria must be met.
• The area is small compared to districts surrounding the parcel in question.
The property is small compared to surrounding properties in the district, which can be seen just by looking at
the map.
• The new district allows land uses inconsistent with those allowed in the vicinity.
As staff has pointed out in the memo with the photos and pointed out on the map, there are similar uses
directly across the street and down the block, so this is not inconsistent with what’s in the vicinity.
• The spot zone would confer a special benefit on the individual property owner not commonly enjoyed by the
owners of similar property.
That would not be the case here because similar properties have the same options, as do adjacent properties.
• The existence of the spot zone conflicts with the policies in the text of the master plan and the future land use
map.
As the Planning Director pointed out, this is consistent with the Master Plan. So for those reasons, this, in my
opinion, would not be a spot zone.
Due to all four criteria being met, the rezoning of 1827 Beidler Street would not be considered spot zoning.
MOTION
J. Montgomery-Keast moved, seconded by J. Seyferth, that the request to rezone 1727 Beidler Street from Neighborhood
Residential to Form-Based Code, Neighborhood Edge be recommended for approval to the City Commission.
ROLL CALL VOTE
B. Mazade: Yes Montgomery-Keast: Yes
J. Seyferth: Yes L. Willet-Leroi: Yes
S. Blake: Yes
MOTION PASSES
Page 275 of 369
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 14, 2025 Title: Neighborhood Enterprise Zone Certificates -
558, 568, 601, 608, 613, 621 Jackson; 522, 532
Leonard; 501, 503, 505 Alva; 502, 504 Herrick and
460 Langley.
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
Staff is requesting the approval of Neighborhood Enterprise Zone (NEZ) certificates for 15 years for
new construction homes at 558, 568, 601, 608, 613, 621 Jackson; 522, 532 Leonard; 501, 503, 505 Alva;
502, 504 Herrick and 460 Langley.
Detailed Summary & Background:
Applications for Neighborhood Enterprise Zone (NEZ) certificates has been received from Green
Rabbit Home Builders for the new construction of homes at 558, 568, 601, 608, 613, 621 Jackson; 522,
532 Leonard; 501, 503, 505 Alva; 502, 504 Herrick and 460 Langley. The cost of construction is
approximately $190,000 per home. The applicant has met local and state requirements for the
issuance of the NEZ certificate. You will also find a copy of the new NEZ resolution and map outlining
new NEZ boundaries.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Diverse housing types
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Additional attainable housing units and
increased rates of home ownership
Amount Requested: Budgeted Item:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A X
Recommended Motion:
I move to close the public hearing and approve the Neighborhood Enterprise Zone District
certificates at 558, 568, 601, 608, 613, 621 Jackson; 522, 532 Leonard; 501, 503, 505 Alva; 502, 504
Herrick and 460 Langley and authorize the City Clerk and Mayor to sign the certificate resolution.
Page 276 of 369
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes
Information
Technology
Other Division Heads
Communication
Legal Review
Page 277 of 369
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Page 281 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 460 Langley St. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 282 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 283 of 369
33.09
70
15.25
JAC
15 28.33
KSO
12 5
66.91
CL
NA
SETBACK OF NEIGHBORING HOME
27.66
VE
7.66
7.66 EXISTING SIDEWALK
5
13
33
EXISTING CURB
LANGLEY ST
CL
Site Plan 460
1
1" = 20'-0"
N
11/18/2024 8:05:08 PM
No. Description Date
Site Plan
Acorn Home Solutions LLC BRYANT MITCHELL Project number Project Number
460 LANGLEY ST
Date
Drawn by
11/18/2024
RWWA
C1
Ron@Acornhomesolution.com
Checked by Checker Scale 1" = 20'-0"
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Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 501 Alva St. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 289 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 290 of 369
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Page 294 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 502 Herrick St. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 295 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 296 of 369
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Page 300 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 503 Alva St. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 301 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 302 of 369
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Page 304 of 369
Page 305 of 369
Page 306 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 504 Herrick St. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 307 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 308 of 369
Page 309 of 369
Page 310 of 369
Page 311 of 369
Page 312 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 505 Alva St. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 313 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 314 of 369
Page 315 of 369
Page 316 of 369
Page 317 of 369
Page 318 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 522 Leonard Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 319 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 320 of 369
Page 321 of 369
Page 322 of 369
Page 323 of 369
Page 324 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 532 Leonard Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 325 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 326 of 369
Page 327 of 369
Page 328 of 369
Page 329 of 369
Page 330 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 558 Jackson Avenue in the Jackson
Hill neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 331 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 332 of 369
Page 333 of 369
Page 334 of 369
Page 335 of 369
Page 336 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 568 Jackson Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 337 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 338 of 369
Page 339 of 369
Page 340 of 369
Page 341 of 369
Page 342 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 601 Jackson Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 343 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 344 of 369
Page 345 of 369
Page 346 of 369
Page 347 of 369
Page 348 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 608 Jackson Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 349 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 350 of 369
64.07 33.09
24
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12.64 12
STI
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KSO
NG
66.91
SID
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ALK
ONE STALL GARAGE
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26
12X26
SETBACK OF NEIGHBORING HOME
VE
7.66
8.3
EXISTING SIDEWALK
89.75
33
EXISTING CURB
LANGLEY ST
CL
N
No. Description Date
Site Plan
12/9/2024 7:18:35 PM
Acorn Home Solutions LLC Green Rabbit Home Builders Project number Project Number
608 JACKSON AVE
Date
Drawn by
11/18/2024
RWWA
C1
Ron@Acornhomesolution.com
Checked by Checker Scale 1" = 20'-0"
Page 351 of 369
Page 352 of 369
Page 353 of 369
Page 354 of 369
Page 355 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 613 Jackson Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 356 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 357 of 369
Page 358 of 369
Page 359 of 369
Page 360 of 369
Page 361 of 369
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Green Rabbit Home Builders to construct a new home at 621 Jackson Ave. in the Jackson Hill
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for fifteen (15) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Green Rabbit Home Builders be approved.
Adopted this 14th day of January, 2025.
Ayes:
Nays:
Absent:
By: __________________________
Ken Johnson, Mayor
Attest: _________________________
Ann Meisch
City Clerk
Page 362 of 369
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
January 14, 2025.
By: ________________________
Ann Meisch
City Clerk
Page 363 of 369
QUIT-CLAIM DEED
KNOW ALL PERSONS BY THESE PRESENTS: That theCITY OF MUSKEGON, a municipal
of 933 TerraceStreet,
corporation, Muskegon, Michigan 49440,
QUIT CLAIMS toEB2 Development LimitedLiability
Company d/b/aGreen Rabbit Home Builders,
of 1801 44th St SE, Grand Rapids,MI, 49058,
the followingdescribedpremisessituated
inthe Cityof Muskegon, County of
Muskegon, Stateof
Michigan, towit:
*See Attached Legal Descriptions
forthesum of Twenty-FiveThousand, One Hundred
Twenty-Fiveand 00/100Dollars($25,125.00)
PROVIDED, HOWEVER, Grantee,or itsassigns,shallcompleteconstructionof one (1)singlefamily
home on each ofthe fourteen(14)parcelsfora totalof fourteen
(14)singlefamilyhomes on thepremises
hereinconveyed withintwenty-four(24)months afterthedatehereof.In defaultof such
construction,
titletothepremisesshallreverttothe Cityof
Muskegon freeand clearof any claimof Granteeor its
assigns.In addition,theCityof Muskegon may retain the consideration
forthisconveyance freeand
clearof any claimof Granteeor itsassigns.Buyer shallremove
onlythosetreesnecessaryfor
constructionofthehomes and driveways."Complete construction" means: (1)issuanceof a residential
buildingpermitsby the Cityof Muskegon; and (2)inthesoleopinionofthe Cityof Muskegon's Director
of Inspections,
substantial
completionofthe dwellingsdescribedinthesaidbuildingpermits.In the
eventofreversionoftitlesofthe above-describedpremises,improvements made thereonshallbecome the
propertyof Grantor.
Thisdeed isexempt from realestate
transfer
taxpursuanttothe provisions
of MCLA and
207.505(h)(i)
MCLA 207.526 Sec.6(h)(i).
Dated this day of October,2024.
Signed inthe presenceof: CITY OF MUSKEGON
Ken Johnsgn,ItsMayo
// an
Ann Marie Meisch,MMC, ItsClerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
SignødahŸswor/@v beforeme inMuskegon County,Michigan,on October ,2024,Ù KEN
JOHNSON and ANN MARIE MEISCH, MMC, theMayor and Clerk, oftheCITY OF
respectively,
MUSKEGON, a municipalcorporation,
on behalfofthe City.
PREPARED BY: Samantha Pulos &/4 S. o er ,Notary Public
Cityof Muskegon PlanningDept. Acting inthe County of 4
#]¿¾//gpo
933 TerraceSt.Room 202 77)y e e_o a
" County,Michigan
Muskegon, MI 49440 -
My Comm. Expires: f c2 P c2030
Telephone: 231-724-6702
WHEN RECORDED RETURN TO: Grantees SEND TAX BILLS TO:
SUBSEQUENT
Grantees
ffjyY1fjQ loloif NOrV) b{JI idex
'P&pid O. ATT 49057
eyøoct
Page 364 of 369
*LEGAL DESCRIPTIONS:
1. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 5 FEET LOT 20 &
LOT 21 BLOCK 14
Address:568 JACKSON AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-014-0021-00
Price:$1,687.50
2. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 1/2LOT 19 AND
WEST 44 ½ FEET LOT 20 BLOCK 14
Address:558 JACKSON AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-014-0020-01
Price:$1,687.50
3. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 44 FEET LOT 12
BLOCK 9
Address:532 LEONARD AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-009-0012-01
Price:$1,500.00
4. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 22 FEET LOT 11
& WEST 22 FEET LOT 12 BLOCK 9
Address:522 LEONARD AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-009-0012-10
Price:$1,500.00
5. Legal Description:CITY OF MUSKEGON REVISED PLAT OF 1903 WEST 66 FEET OF
NORTH 132 FEET LOT 1 BLOCK 21
Address:601 JACKSON AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-021-0001-00
Price:$3,000.00
6. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 BLOCK 20
Address:613 JACKSON AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-020-0002-00
Price:$1,687.50
7. LegalDescription:CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 BLOCK 20
Address:621 JACKSON AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-020-0001-01
Price:$1,687.50
8. Legal Description:CITY OF MUSKEGON REVISED PLAT OF 1903 SOUTHERLY 89.75
FEET ON LANGLEY STREET & 64.75FEET ON EAST LINE LOT 6 BLOCK 15
Address:608 JACKSON AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-015-0006-11
Price:$1,500.00
9. Legal Description:CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 EXCEPT
NORTHERLY 50 FEET BEING 50 FEET ON LANGLEY STREET & 62.32 FEET ON EAST
LINE LOT 6 EXCEPT SOUTHERLY 89.75FEET ON LANGLEY STREET & SOUTHERLY
64.75FEET ON EAST LINE BLOCK 15
Address:460 LANGLEY AVE, MUSKEGON, MI 49442
Parcel#: 61-24-205-015-0006-20
Price:$1,500.00
10. LegalDescription:CITY OF MUSKEGON REVISED PLAT OF 1903 NORTH 50 FEET LOT 1
& NORTH 50 FEET EXCEPT WESTERLY 10.5FEET LOT 2 BLOCK 22
Address:501 ALVA, MUSKEGON, MI 49442
Parcel#: 61-24-205-022-0001-01
Price:$1,562.50
Page 365 of 369
11. Legal Description:CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 EXCEPT
NORTHERLY 50 FEET & SOUTHERLY 32 FEET & LOT 2 EXCEPT NORTHERLY 50 FEET
& SOUTHERLY 32 FEET & WESTERLY 10.5FEET BLOCK 22
Address:503 ALVA ST, MUSKEGON, MI 49442
Parcel#: 61-24-205-022-0001-10
Price:$1,562.50
12. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 SLY 32 FT LOT 1&
SLY 32 FT EXCEPT WESTERLY 10.5FEET LOT 2 & LOT 11 EXCEPT WESTERLY 10.5
FEET OF NORTHERLY 33 FEET BLOCK 22
Address:505 ALVA ST, MUSKEGON, MI 49442
Parcel#: 61-24-205-022-0011-01
Price:$3,125.00
13. Legal Description:
CITY OF MUSKEGON REVISED PLAT OF 1903 NORTH 55 FEET LOT 3
& NORTH 55 FEET OF WESTERLY 10.5FEET LOT 2 BLOCK 22
Address:502 HERRICK ST, MUSKEGON, MI 49442
Parcel#: 61-24-205-022-0003-30
Price:$1,562.50
14. Legal Description:CITY OF MUSKEGON REVISED PLAT OF 1903 SOUTH 95 FEET OF
NORTH 150 FEET LOT 3 & WEST 10.5FEET LOT 2 EXCEPT NORTH 55 FEET THEREOF
& THE NORTH 33 FEET OF WEST 10.5FEET LOT 11 BLOCK 22
Address:504 HERRICK ST, MUSKEGON, MI 49442
Parcel#: 61-24-205-022-0003-40
Price:$1,562.50
Page 366 of 369
Proposed City of Muskegon NEZ Map
Rehab and New Construction
New Construction
Page 367 of 369
Page 368 of 369
Page 369 of 369
Sign up for City of Muskegon Emails