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CITY OF MUSKEGON
CITY COMMISSION MEETING
January 13, 2026 @ 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. Recognition of Equalization Manager's Office
B. Audit Presentation-ACFR by Brickley Delong Finance
☐ PUBLIC HEARINGS:
A. Establishment of a Commercial Redevelopment District —356 W. Western
Ave. Economic Development
B. Issuance of a Commercial Facilities Exemption Certificate — 356 W.
Western Ave. Economic Development
☐ FEDERAL/STATE/COUNTY OFFICIALS UPDATE:
☐ PUBLIC COMMENT ON AGENDA ITEMS:
☐ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. BS&A Online Payments Treasury
C. 2026 Wage Matrix for Non-Union Part-Time and Limited Term Employees
Employee Relations
D. 2024 Justice Assistance Grant Public Safety
E. Resolution Revoking an Obsolete Property Rehabilitation Act (OPRA)
Exemption Certificate for Ghezzi Investments LLC Economic
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Development
F. Amendment to Purchase and Development Agreement: 286/294 Myrtle
Planning
G. Sale of 502 Oak Planning
H. Sewer Jet Truck Purchase Public Works
☐ UNFINISHED BUSINESS:
☐ NEW BUSINESS:
☐ ANY OTHER BUSINESS:
☐ GENERAL PUBLIC COMMENT:
► 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. ►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 13, 2026 Title: Recognition of Equalization
Submitted by: Kimberly Young, Administrative Department: Manager's Office
Assistant to the City Manager
Brief Summary:
To present a Certificate of Achievement and to recognize the Muskegon County Equalization
Department for achieving a perfect score on the 2025 PA 660 Assessment Audit Review.
Detailed Summary & Background:
n/a
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Yes No N/A x
Fund(s) or Account(s): Budget Amendment Needed:
n/a Yes No N/A x
Recommended Motion:
Presentation only.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division n/a
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Audit Presentation-ACFR by Brickley Delong
Submitted by: Kenneth Grant, Finance Director Department: Finance
Brief Summary:
Detailed Summary & Background:
Presentation of the 2024-25 Audit
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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ANN UAL COMP REHENSIVE
Financial Report
JU LY 2 0 24 - JU NE 2 0 2 5
FISCAL YE AR ENDED JUNE 30, 2025
933 Terrace Street | Muskegon, Michigan
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CITY OF MUSKEGON,
MICHIGAN
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2025
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 .................................................................. 122
Combining Balance Sheet ............................................................................................................... 123
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position .................................................................................................. 124
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances (Deficits) ......................................................................................................... 125
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances (Deficits) to the Statement
of Activities ................................................................................................................................. 126
Schedule of Indebtedness ................................................................................................................... 127
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City of Muskegon
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends
Net Position by Component ............................................................................................................... 134
Changes in Net Position ..................................................................................................................... 135
Fund Balances of Governmental Funds ............................................................................................. 137
Changes in Fund Balances of Governmental Funds .......................................................................... 138
Revenue Capacity
Governmental Activities Revenues by Source ................................................................................... 139
Taxable, Assessed and Equalized and Estimated Actual Valuation of Property................................ 140
Principal Property Taxpayers ............................................................................................................. 141
Property Tax Rates – Direct and Overlapping Government Units ..................................................... 142
Property Tax Levies and Collections ................................................................................................. 143
Total Income Tax Collected and Number of Returns Filed ............................................................... 144
Debt Capacity
Ratio of Outstanding Debt by Type ................................................................................................... 146
Direct and Overlapping Debt ............................................................................................................. 147
Legal Debt Margin Information ......................................................................................................... 148
Revenue Bond Coverage .................................................................................................................... 149
Demographic and Economic Information
Demographic and Economic Statistics ............................................................................................... 150
Principal Employers ........................................................................................................................... 151
Operation Information
Full-time Equivalent Government Employees ................................................................................... 152
Operating Indicators by Function/Program ........................................................................................ 153
Capital Asset Statistics by Function/Program .................................................................................... 154
SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards .................................................................................................... 156
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control over Compliance Required by
the Uniform Guidance .................................................................................................................... 158
Schedule of Expenditures of Federal Awards ..................................................................................... 161
Notes to Schedule of Expenditures of Federal Awards ....................................................................... 164
Schedule of Findings and Questioned Costs ....................................................................................... 165
Client Documents
Summary Schedule of Prior Audit Findings ................................................................................... 168
Corrective Action Plan ................................................................................................................... 170
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CITY MANAGER'S OFFICE
December 23, 2025
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, 2025.
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, 2025. The
independent auditor’s report is located at the front of the financial section of this report.
The 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. The
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 in each of the four wards elect one ward commissioner. Commission members
serve four-year terms: the two at-large members are elected every four years in odd-numbered years
preceding the Michigan Gubernatorial election, and the four ward commissioners are elected every
four years in odd-numbered 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.
The City 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 (contracted); 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.
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CITY MANAGER'S OFFICE
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’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 also 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.
• In May of 2025, the Muskegon Lumberjacks won the USHL Championship, bringing the
Clark Cup to Muskegon for the first time.
• 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 The Lakeshore Art Festival, 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, and the Michigan
Irish Music Festival, among others.
• 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 opened its $15.4 million expansion this past year. The
expansion allows for a significant increase in exhibit space with the addition of four new
exhibition galleries. The museum’s footprint has expanded from 31,800 sf to 57,570 sf.
• 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.
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CITY MANAGER'S OFFICE
• Muskegon’s downtown is home to dozens of monumental public art pieces. This past year,
historic monuments in Hackley Park were restored through a partnership with a grant from
the Michigan State Historic Preservation Office and donations from Community Members.
• The City led the way in the movement and preservation of the Nelson House to its new
location on Muskegon Ave in the heart of the Downtown’s Heritage District.
• According to our countywide tourism agency, Visit Muskegon, tourism spending increased
by more than 5% this past year to $388 million.
• 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 also benefits
from being home to large employers in government, healthcare, and education. While many of these
institutions are exempt from paying property taxes, local income tax withholdings remitted by these
employers provide stability to the City's finances. Indeed, city income tax revenues are 40% higher
on average than city property taxes.
The City fully recognizes the difficulties it faces as an older urban community. Thus, the City has
positioned itself as a leader in fiscal stability and sustainability by making key investments in areas
that grow the City’s financial resources over the long term.
Long-term financial planning and major initiatives
The City ended FY 2024-25 with General Fund revenues exceeding expenses by $1,286,503 (as
found on the Statement of Revenues, Expenditures and Changes in Fund Balances). However,
$1,162,920 was transferred to other funds to stabilize non-General Fund budgets. The net change in
fund balance of $158,246 was added to the City’s unrestricted fund balance.
Transfers to other funds include $760,000 to Trinity Health Arena operations and $300,000 to
Hartshorn Marina.
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CITY MANAGER'S OFFICE
The unassigned fund balance in the General Fund at year-end stands at $7,080,481 or 17.36% of total
actual General Fund revenues for the preceding year (fiscal year ending June 2024). This amount
exceeds the Commission's minimum (13%) policy guidelines for budgeting and planning. This is an
increase in our overall unassigned fund balance, which stood at just over 13% last fiscal year. This
increase in the fund balance is attributed to higher-than-expected revenues and lower-than-expected
expenses. The lower-than-expected costs are attributable to reduced staffing in the Police
Department, driven by attrition and competition from larger departments. City administration is
working to shore up our numbers in the Police Department through more competitive wages, updated
facilities, and equipment.
Fiscal Year 2025-26 is projected to increase the fund balance of the General Fund again. However,
due to changes in revenues, the City expects a slight decrease in the fund balance percentage relative
to the previous fiscal year's revenues.
It is worth noting that the City’s overall budget and fund balance position has improved significantly
relative to projections developed during the FY 2025-26 budget process. However, given the
uncertainty in the national economy, a continued conservative budgeting approach is advisable for
the next few fiscal years.
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 not counted in the
unassigned fund balance but are shown as assigned for capital projects and public improvements in
the General Fund. In an extreme situation, the City Commission could use these dollars in alignment
with PA 30 of 1978, sec. 4.
Adequate unassigned fund balances are maintained to enable the City to continue providing services
to the community during unexpected emergencies and/or economic downturns. Unassigned fund
balances may also be used for one-time capital projects in future fiscal years.
The City incorporates a five-year fiscal forecast into its yearly budget process. The forecast is a
macro-level projection of primary 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 continue to grow over the next five years, though it could be
more modest growth than in previous fiscal years.
Among the City's major initiatives and accomplishments in the fiscal year 2024-25 were the
following:
• Construction continued at Adelaide Point in 2025 and is nearing completion. The waterfront
development features more than $200 million in investments and create a dozen new high-
end housing opportunities in the City.
• Parkland Properties broke ground on the redevelopment of the former Shaw Walker property
on Lower West Western Ave. This will be a mixed-use development project valued at more
than $200 million, bringing hundreds of additional housing options to the City at various
price points.
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CITY MANAGER'S OFFICE
• The City saw reconstruction of roads, water, and sewer infrastructure in various locations
across the City
• 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)
The headline for this past fiscal year is that, for the first time since 2020, the Water Fund has a
net positive net position. This year, the unrestricted net position stands at just over half a million
dollars in positive territory.
To achieve this goal, the City Commission adjusted water rates and implemented a debt service fee in
2023, which is paid by all water and sewer users in the City, but not by wholesale customers. This
debt service fee is based on the previous fiscal year’s debt payments.
Because of the City Commission's hard work on water rates and debt fees, the water fund saw a
movement of more than $840,000 in its unrestricted position in one fiscal year.
As a reminder, the objective with the net position is to reach a minimum of six (6) months of
unrestricted net position, or about $6 million. This will take an additional six to seven years to
achieve. However, the movement we’ve seen in the past two (2) years is impressive and is directly
related to the hard work of staff and the vision of the City Commission to make sometimes unpopular
decisions to move these funds in a positive direction.
Water Fund Unrestricted Net Position
FY 2019 - 2025
$1,500,000 2019 2020 2021 2022 2023 2024 2025
$890,458
$1,000,000
$562,099
$500,000 $289,495
$-
$(500,000) $(210,948)
$(332,672)
$(1,000,000)
$(1,500,000)
$(2,000,000)
$(1,959,259)
$(2,078,558)
$(2,500,000)
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CITY MANAGER'S OFFICE
It should also be noted that the City intends to continue to actively participate in the State of
Michigan’s Drinking Water State Revolving Fund (DWSRF) and Clean Water State Revolving Fund
(SRF) programs to support the replacement of water and sewer infrastructure throughout the City.
Infrastructure that, in many cases, has been in use for a century or more.
It remains in the City’s best interest to leverage state revolving loan fund programs for water and
sewer replacement. The City, 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 to leverage state revolving loan funds, which allow projects to be completed at a 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
our state legislators, emphasizing the importance to cities like Muskegon that the State maintain these
programs with meaningful grant forgiveness to ensure our lead service line replacement windows are
met. This has become even more important now that the EPA has set a federal timeline of 10 years
to replace lead service lines nationwide. If this EPA rule takes effect, the administration anticipates
higher costs to replace our lead service lines due to increased nationwide demand for materials.
The Sewer Fund was in a similar situation to the Water Fund with a significant reduction in its net
position occurring in 2020. The City Commission's decision to increase sewer rates reversed that
downward trend. Today, the Sewer Fund’s net position exceeds $6.5 million, slightly above the
recommended 6-month minimum of operating revenues.
Sewer Fund Unrestricted Net Position
FY 2019 - 2025
2019 2020 2021 2022 2023 2024 2025
$8,000,000
$6,293,064 $6,587,907
$6,000,000
$3,844,210
$4,000,000
$1,948,059
$2,000,000
$108,636
$-
$(2,000,000) $(1,222,053)
$(4,000,000)
$(3,595,965)
$(6,000,000)
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CITY MANAGER'S OFFICE
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, 2024. This was
the 38th consecutive year that the City has received this award. The City has submitted the June 30,
2025, ACFR for consideration, but has not yet received confirmation of the award. 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.
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, 2024
Executive Director/CEO
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Organizational Structure 2024-2025
Mayor and City Commission
City Manager & Deputy City Manager External Auditors
City Attorney
Planning Commission
Finance and Public Works Zoning Board of Appeals
Public Safety Development Services
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, 2025
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, 2025, 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, 2025, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City of Muskegon, Michigan, and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note O to the financial statements, in the year ended June 30, 2025 the City adopted new
accounting guidance, GASB No. 101, Compensated Absences. Our opinions are not modified with respect to this
matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
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 23, 2025
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2025 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, 2025. 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 $143,027,433 as of June 30, 2025. The City has a deficit in unrestricted net
position of $12,902,030. 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 $9,714,976 during the year ended June 30, 2025.
The City’s governmental funds reported combined ending fund balance of $22,213,488, an increase of
$964,412 (4.5%) from the prior year.
The City’s General Fund reported a total fund balance of $9,747,474, an increase of $158,246 from the
prior year balance of $9,589,228.
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.
The government-wide beginning net position was restated for the effects of implementing GASB
Statement 101—Compensated Absences. Additional information on the implementation can be found
in Note O of the notes to the basic financial statements of this report. The prior year statement of net
position and statements of activities was not restated for the effect of GASB Statement 101 as the data
is not available.
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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 nine 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 $143,027,433 as of June 30, 2025. This is an increase of
$9,714,976 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
6/30/2025 6/30/2024* 6/30/2025 6/30/2024* 6/30/2025 6/30/2024* Change
Current and other assets $48,453 $48,433 $22,355 $14,621 $70,808 $63,054 12.30%
Capital assets 107,383 106,998 80,896 76,868 188,279 183,866 2.40%
Total Assets 155,836 155,431 103,251 91,489 259,087 246,920 4.93%
Deferred outflow s of resources 5,778 6,828 401 475 6,179 7,303 -15.39%
Total Assets and Deferred Outflow s of Resources 161,614 162,259 103,652 91,964 265,266 254,223 4.34%
Long-term liabilities 71,587 72,905 18,726 17,354 90,313 90,259 0.06%
Current liabilities 12,304 14,704 4,289 4,490 16,593 19,194 -13.55%
Total Liabilities 83,891 87,609 23,015 21,844 106,906 109,453 -2.33%
Deferred inflow s of resources 7,859 9,076 7,473 1,549 15,332 10,625 44.30%
Total Liabilities and Deferred Inflow s of Resources 91,750 96,685 30,488 23,393 122,238 120,078 1.80%
Net Position `
Net investment in capital assets 80,016 77,860 62,662 60,004 142,678 137,864 3.49%
Restricted 12,124 10,591 1128 1014 13,252 11,605 14.19%
Unrestricted -22,276 -22,877 9,374 7,552 -12,902 -15,325 -15.81%
Total Net Position $69,864 $65,574 $73,164 $68,570 $143,028 $134,144 6.62%
* 2024 numbers have not been updated for the adoption of
GASB 101.
The bulk of the City’s net position, $142,677,623, 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 $13,252,040 of the City’s net position are legally restricted as to use. The City has a deficit in
unrestricted net position of $12,902,030. 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 $2,422,264 during the year.
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Changes in net position. The City’s total revenues were $94,890,852 for the year ended June 30, 2025.
This represents a 4.59% increase over total revenues collected during the prior fiscal year.
Approximately 36% of the City’s revenue stream came from charges to users of specific services such as
water or sewer. Another 10% came from grants from the state and federal governments and 27% 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, 2025 was $85,175,876. This
represents a 7.9% increase from reported expenses for the last fiscal year ended June 30, 2025. 75% of
the City’s expenses were for governmental activities such as police and fire protection, streets, parks,
and general administration. The remaining 25% 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 $5,146,534 and the net position for
business-type activities increased by $4,568,442. 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
6/30/2025 6/30/2024* 6/30/2025 6/30/2024* 6/30/2025 6/30/2024* Change
Program revenues
Charges for services $12,193 $10,942 $22,314 $21,139 $34,507 $32,081 7.56%
Operating grants and contributions 12,017 11,468 106 130 12,123 11,598 4.53%
Capital grants and contributions 8,202 5,345 3,056 5,517 11,258 10,862 3.65%
General revenues
Property taxes 11,768 11,017 - - 11,768 11,017 6.82%
Income taxes 13,464 12,767 - - 13,464 12,767 5.46%
State shared revenues 6,256 6,342 - - 6,256 6,342 -1.36%
All other 5,393 6,014 123 40 5,516 6,054 -8.89%
Total revenues 69,293 63,895 25,599 26,826 94,892 90,721 4.60%
Governmental activities expenses
Public representation 2,229 2,723 - - 2,229 2,723 -18.14%
Administrative services 1,059 1,037 - - 1,059 1,037 2.12%
Financial services 7,277 5,792 - - 7,277 5,792 25.64%
Public safety 19,533 16,243 - - 19,533 16,243 20.25%
Public w orks 4,521 4,677 - - 4,521 4,677 -3.34%
Highw ays, streets and bridges 8,015 7,755 - - 8,015 7,755 3.35%
Community and economic development 10,279 11,004 - - 10,279 11,004 -6.59%
Culture and recreation 9,368 8,151 - - 9,368 8,151 14.93%
General administration 742 702 - - 742 702 5.70%
Interest on long-term debt 823 861 - - 823 861 -4.41%
Business-type activities expenses
Sew er - - 9,826 8,983 9,826 8,983 9.38%
Water - - 10,974 10,435 10,974 10,435 5.17%
Marina and launch ramp - - 530 530 530 530 0.00%
Total expenses 63,846 58,945 21,330 19,948 85,176 78,893 7.96%
Change in net position before transfers 5,447 4,950 4,269 6,878 9,716 11,828 -17.86%
Transfers (300) (730) 300 730 - - -
Change in net position 5,147 4,220 4,569 7,608 9,716 11,828 -17.86%
Net position at beginning of year 65,574 61,354 68,570 60,962 134,144 122,316 9.67%
Restatement (857) - 25 - (832) -
Net position at beginning of year as restated 64,717 61,354 68,595 60,962 133,312 122,316 8.99%
Net position at end of year $69,864 $65,574 $73,164 $68,570 $143,028 $134,144 6.62%
* 2024 numbers have not been updated for the adoption of
GASB 101.
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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, 2025 was
$63,846,174.
• The net cost that City taxpayers paid for these activities through local property taxes and income
taxes was $25,232,180, or about 40% 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
6/30/2025 6/30/2024 % Change 6/30/2025 6/30/2024 % Change
Governmental activities
Public safety $19,533 $16,243 20.25% $16,081 $13,401 20.00%
Public w orks 4,521 4,677 -3.34% 3,318 3,358 -1.19%
Highw ays, streets and bridges 8,015 7,755 3.35% (64) 941 0.00%
Community and economic development 10,279 11,004 -6.59% 3,132 5,685 -44.91%
Culture and recreation 9,367 8,151 14.92% 852 156 446.15%
All other 12,131 11,114 9.15% 8,115 7,648 6.11%
Total governmental activities $63,846 $58,944 8.32% $31,434 $31,189 0.79%
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, 2025, the City’s total business-type activities realized an
overall increase in net position of $4,568,442.
Sewer Fund net position increased $548,740 primarily from the result of adjustments to utility rates.
The Water Fund saw a net position increase of $3,550,299. Marina and Launch Ramp Fund net position
increased $99,989.
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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, 2025 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%)
6/30/2025 $7,080,481 38.17% $40,793,281 17.36%
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 7,981,647 -12.50% 33,056,483 24.15%
6/30/2021 9,121,955 -9.79% 29,653,448 30.76%
For the year ended June 30, 2025, General Fund revenues were $855,657 higher than the final amended
budget. City income tax collections were the driving force behind this revenue surge. Income tax
collections are up $780,683 from the previous fiscal year.
Intergovernmental revenues are up by $705,323 from last year. Federal grants this fiscal year increased
by $488,945. Funds received from State grants increased by $37,610. State sales tax constitutional and
County Village Township Revenue Sharing (CVTRS) funds were up by $48,768 from the last fiscal year.
Overall this year, General Fund revenues exceeded expenditures increasing overall fund balance by
$158,246. Unassigned fund balance is $7,080,481 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 $744,000 lower than projected in the final amended budget. The
variance from the final budgeted expenditures was insignificant—less than 2%. Some of the key areas
that were higher than budgeted were general sanitation, parks maintenance, and parking operations.
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, 2025, the fund balance of the Major Street and Trunkline Fund decreased by $678,826.
The Department of Public Works plans to spend this fund balance down on anticipated future projects in
the 25/26 fiscal year.
Trinity Health Arena is an arena operated 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. Revenue is also
generated 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 24/25 fiscal year. The fund balance of the Arena
decreased by $2,929.
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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 24/25 were $3,886,900. 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, 2025, the City had invested $188,278,928 in a variety of capital assets, including land,
streets, equipment, buildings, water and sewer lines, and vehicles. This is an increase of $4,412,441
from capital assets reported as of June 30, 2024. 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, 2025, the City had $47,397,973 in bonds and other The City’s limited full faith and credit bonds
long-term obligations outstanding. This represents a .49%
increase from the prior year. The City issued new debt for (bonds guaranteed by the City’s taxing
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
6/30/2025 6/30/2024 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Change
Due w ithin one year $1,921 $2,106 $1,647 $1,647 $3,568 $3,753 -4.93%
Due in more than one year 28,125 29,104 15,705 14,309 43,830 43,413 0.96%
Total bonds & other obligations $30,046 $31,210 $17,352 $15,956 $47,398 $47,166 0.49%
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 $285,000 at year-end as
shown in the table below. This represents a decrease of 49% 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
6/30/2025 6/30/2024 6/30/2025 6/30/2024 Change
Due w ithin one year $285 $275 $285 $275 3.64%
Due in more than one year 0 287 0 287 -100.00%
Total bonds & other obligations $285 $562 $285 $562 -49.29%
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City’s fiscal year 2025-26 capital budget anticipates spending $19,415,521 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 2025-26
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 273
• 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 6.4% from $ 12,243,618 for the year ended June 30, 2024 to $13,024,301
for the year ended June 30, 2025. For 2025-26, the City has estimated income tax revenue to be
$13,225,000.
Year City Income Tax Revenues Percent Change
6/30/2025 $13,024,301 6.4%
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%
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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 2025-26, the City tax levy will be at 9.447 mills for general operations and 2.8174 mills for sanitation
service. We project that $9,705,436 in total property tax revenue will be collected during fiscal year
2025-26.
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
6/30/2025 $5,370,129 0.9%
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%
For 2025-26, the City projects $5,485,000 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
6/30/2025 $8,076,228 19.3%
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 6.2%
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The City is projecting street revenues for fiscal year 2025-26 of $7,387,213.
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 $21,540,818 during the year ended June 30, 2025. 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, 2025
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets
Cash and investments $ 27,979,961 $ 6,887,825 $ 34,867,786 $ 854,405
Assets managed by others 1,828,161 - 1,828,161 -
Receivables
Accounts and notes 3,610,048 3,750,626 7,360,674 17,912
Leases 380,611 119,230 499,841 -
Due from other governmental units 3,337,400 1,059,398 4,396,798 -
Internal balances (1,229,069) 1,229,069 - -
Inventories 12,738 561,135 573,873 -
Prepaid items 836,399 156,374 992,773 -
Total current assets 36,756,249 13,763,657 50,519,906 872,317
Noncurrent assets
Restricted cash and investments - 961,000 961,000 -
Advances to component units 117,833 - 117,833 -
Leases receivable, less amounts due within one year 7,478,163 7,353,721 14,831,884 -
Notes receivable, less amounts due within one year 125,929 - 125,929 -
Capital assets, net
Nondepreciable 17,116,394 7,274,817 24,391,211 400,000
Depreciable 90,266,633 73,621,084 163,887,717 71,937
Net other postemployment benefits asset 3,974,880 276,328 4,251,208 -
Total noncurrent assets 119,079,832 89,486,950 208,566,782 471,937
Total assets 155,836,081 103,250,607 259,086,688 1,344,254
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 5,571,455 387,321 5,958,776 -
Related to other postemployment benefits 206,462 14,353 220,815 -
Total deferred outflows of resources 5,777,917 401,674 6,179,591 -
Total assets and deferred outflows of resources 161,613,998 103,652,281 265,266,279 1,344,254
The accompanying notes are an integral part of this statement.
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City of Muskegon
STATEMENT OF NET POSITION—CONTINUED
June 30, 2025
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 5,663,128 $ 1,643,305 $ 7,306,433 $ 216,865
Due to other governmental units 150,131 883,385 1,033,516 67
Unearned revenues—unused Farmers Market tokens 158,867 - 158,867 -
Unearned revenues—expenditure-driven grants 4,411,518 - 4,411,518 -
Unearned revenues—prepaid fees - 115,619 115,619 -
Bonds and other obligations, due within one year 1,921,000 1,647,122 3,568,122 285,000
Total current liabilities 12,304,644 4,289,431 16,594,075 501,932
Noncurrent liabilities
Advances from primary government - - - 117,833
Bonds and other obligations, less amounts due within one year 28,125,018 15,704,833 43,829,851 -
Net pension liability 43,461,787 3,021,408 46,483,195 -
Total noncurrent liabilities 71,586,805 18,726,241 90,313,046 117,833
Total liabilities 83,891,449 23,015,672 106,907,121 619,765
DEFERRED INFLOWS OF RESOURCES
Related to leases 7,858,774 7,472,951 15,331,725 -
Total liabilities and deferred inflows of resources 91,750,223 30,488,623 122,238,846 619,765
NET POSITION
Net investment in capital assets 80,015,524 62,661,899 142,677,423 186,937
Restricted
Highways, streets and bridges 5,003,190 - 5,003,190 -
Debt service - 851,600 851,600 -
Trinity Health Arena 78,225 - 78,225 -
Law enforcement 23,481 - 23,481 -
Business improvement districts 22,420 - 22,420 -
Opioid settlement 171,245 - 171,245 -
Perpetual care
Expendable 932,114 - 932,114 -
Non-expendable 1,826,049 - 1,826,049 -
Other postemployment benefits 3,974,880 276,328 4,251,208 -
Other purposes 92,508 - 92,508 -
Unrestricted (22,275,861) 9,373,831 (12,902,030) 537,552
Total net position $ 69,863,775 $ 73,163,658 $ 143,027,433 $ 724,489
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, 2025
Net (Expe nse ) Revenue and Change s in Ne t Position
Program Re venue Primary Gove rnment
Charge s for Ope rating Grants Capital Grants Gove rnmental Busine ss-type Compone nt
Functions/Programs Expe nse s Se rvices and Contributions and Contributions Activitie s Activities Total Units
Primary government
Governmental activities
Public representation services $ 2,229,559 $ 616,319 $ - $ - $ (1,613,240) $ - $ (1,613,240) $ -
Administrative services 1,058,911 879,387 - 11,366 (168,158) - (168,158) -
Financial services 7,277,240 1,283,524 180,000 - (5,813,716) - (5,813,716) -
Public safety 19,533,090 3,436,080 15,863 - (16,081,147) - (16,081,147) -
Public works 4,521,567 1,196,343 7,474 - (3,317,750) - (3,317,750) -
Highways, streets and bridges 8,014,545 280,351 6,818,635 980,119 64,560 - 64,560 -
Community and economic development 10,279,121 365,298 3,448,148 3,333,468 (3,132,207) - (3,132,207) -
Culture and recreation 9,367,878 4,008,264 1,547,118 2,960,028 (852,468) - (852,468) -
General administration 741,633 127,021 - - (614,612) - (614,612) -
Interest on long-term debt 822,630 - - 916,645 94,015 - 94,015 -
Total governmental activities 63,846,174 12,192,587 12,017,238 8,201,626 (31,434,723) - (31,434,723) -
Business-type activities
Sewer 9,826,124 10,548,439 - - - 722,315 722,315 -
Water 10,974,288 11,435,975 105,686 3,055,637 - 3,623,010 3,623,010 -
Marina and launch ramp 529,290 329,803 - - - (199,487) (199,487) -
Total business-type activities 21,329,702 22,314,217 105,686 3,055,637 - 4,145,838 4,145,838 -
Total primary government $ 85,175,876 $ 34,506,804 $ 12,122,924 $ 11,257,263 (31,434,723) 4,145,838 (27,288,885) -
Component units
Local Development Finance Authority—SmartZone $ 181,100 $ - $ - $ 200,000 - - - 18,900
Downtown Development Authority 659,735 - 134,982 - - - - (524,753)
Tax Increment Finance Authority 50,000 - - - - - - (50,000)
Lakeside Corridor Improvement Authority 6,374 - - - - - - (6,374)
Brownfield Redevelopment Authorities 971,509 - - - - - - (971,509)
Total component units $ 1,868,718 $ - $ 134,982 $ 200,000 - - - (1,533,736)
General revenues
Property taxes 11,767,911 - 11,767,911 2,097,981
Income taxes 13,464,269 - 13,464,269 -
Cable franchise agreement 266,262 - 266,262 -
Grants and contributions not restricted to specific programs 6,256,126 - 6,256,126 38,591
Unrestricted investment earnings 1,762,158 122,604 1,884,762 3,928
Miscellaneous 736,819 - 736,819 -
Gain on sale of capital asset 2,627,712 - 2,627,712 -
Transfers (300,000) 300,000 - -
Total general revenues and transfers 36,581,257 422,604 37,003,861 2,140,500
Change in net position 5,146,534 4,568,442 9,714,976 606,764
Net position at beginning of year, as previously reported 65,574,052 68,570,074 134,144,126 117,725
Adjustments to beginning net position (856,811) 25,142 (831,669) -
Net position at beginning of year, as restated 64,717,241 68,595,216 133,312,457 117,725
Net position at end of year $ 69,863,775 $ 73,163,658 $ 143,027,433 $ 724,489
The accompanying notes are an integral part of this statement.
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City of Muskegon
BALANCE SHEET
Governmental Funds
June 30, 2025
Major Street Trinity Health Other Total
General and Trunkline Arena State Grants Governmental Governmental
Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 8,524,048 $ 4,727,087 $ - $ 4,854,646 $ 5,045,235 $ 23,151,016
Assets managed by others - - - - 1,828,161 1,828,161
Receivables
Accounts and loans (net of allowance for uncollectibles) 344,949 50 406,522 - 202,823 954,344
Property taxes 78,359 - - - - 78,359
Income taxes 2,024,626 - - - - 2,024,626
Leases 3,270,696 - 4,104,067 - 484,011 7,858,774
Due from other governmental units 1,015,949 894,162 - 945 1,426,344 3,337,400
Due from other funds 994,699 - - - - 994,699
Advances to component units 117,833 - - - - 117,833
Prepaid items 303,616 24,471 11,263 - 7,323 346,673
Total assets $ 16,674,775 $ 5,645,770 $ 4,521,852 $ 4,855,591 $ 8,993,897 $ 40,691,885
LIABILITIES
Accounts payable $ 2,482,260 $ 424,864 $ 18,753 $ 543,380 $ 592,990 $ 4,062,247
Accrued liabilities 346,682 11,242 5,958 - 19,318 383,200
Due to other governmental units 36,809 104,693 93 - 935 142,530
Due to other funds - - 314,756 - 456,505 771,261
Unearned revenues—unused Farmers Market tokens - - - - 158,867 158,867
Unearned revenues—expenditure-driven grants 100,854 - - 4,310,664 - 4,411,518
Total liabilities 2,966,605 540,799 339,560 4,854,044 1,228,615 9,929,623
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues—income taxes 690,000 - - - - 690,000
Related to leases 3,270,696 - 4,104,067 - 484,011 7,858,774
Total deferred inflows of resources 3,960,696 - 4,104,067 - 484,011 8,548,774
FUND BALANCES
Nonspendable
Prepaid items 303,616 24,471 11,263 - 7,323 346,673
Perpetual care 10,000 - - - 1,816,049 1,826,049
Restricted
Highways, streets, and bridges - 5,080,500 - - 978,977 6,059,477
Trinity Health Arena - - 66,962 - - 66,962
Law enforcement - - - - 23,481 23,481
Business improvement districts - - - - 22,420 22,420
Perpetual care - - - - 932,114 932,114
Opioid remediation 171,245 - - - - 171,245
Other purposes - - - - 92,508 92,508
Committed for social equity program 382,132 - - - - 382,132
Assigned for capital projects and public improvements 1,800,000 - - 1,547 3,408,399 5,209,946
Unassigned 7,080,481 - - - - 7,080,481
Total fund balances 9,747,474 5,104,971 78,225 1,547 7,281,271 22,213,488
Total liabilities, deferred inflows of
resources, and fund balances $ 16,674,775 $ 5,645,770 $ 4,521,852 $ 4,855,591 $ 8,993,897 $ 40,691,885
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, 2025
Total fund balance—governmental funds $ 22,213,488
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 $ 192,222,135
Accumulated depreciation (88,249,935) 103,972,200
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 690,000
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 (218,800)
Bonds and notes payable (26,594,018)
Compensated absences (3,452,000)
Net pension liability and related deferred outflows/inflows of resources (36,269,355)
Net other post employment benefits liability and related
outflows/inflows of resources 4,002,462 (62,531,711)
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 6,972,305
Internal balances representing the cumulative difference between
actual costs and amounts charged to business-type activities (1,452,507) 5,519,798
Net position of governmental activities $ 69,863,775
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, 2025
Major Street Trinity Health Other Total
General and Trunkline Arena State Grants Governmental Governmental
Fund Fund Fund Fund Funds Funds
REVENUES
Taxes $ 24,311,838 $ - $ - $ - $ - $ 24,311,838
Licenses and permits 2,971,755 - - - - 2,971,755
Intergovernmental revenues
Federal 788,724 - - 3,886,900 2,878,326 7,553,950
State 6,645,775 6,457,237 - 2,315,827 1,951,352 17,370,191
Local 180,000 - - - 959,938 1,139,938
Charges for services 5,823,423 - 2,066,944 - 477,150 8,367,517
Fines and forfeitures 736,879 - - - - 736,879
Investment earnings and rental income 1,908,254 33,133 103,164 - 30,844 2,075,395
Income from assets managed by others - - - - 209,779 209,779
Other 849,667 1,087 2,261 - 1,007,623 1,860,638
Total revenues 44,216,315 6,491,457 2,172,369 6,202,727 7,515,012 66,597,880
EXPENDITURES
Current
Public representation services 2,236,695 - - - - 2,236,695
Administrative services 1,138,987 - - - - 1,138,987
Financial services 7,338,382 - - - - 7,338,382
Public safety 19,325,670 - - - - 19,325,670
Public works 4,427,758 - - - 32,964 4,460,722
Highways, streets and bridges - 4,983,303 - - 3,435,457 8,418,760
Community and economic development 1,372,214 - - - - 1,372,214
Culture and recreation 3,916,395 - 2,691,047 - 667,874 7,275,316
General administration 713,862 - - - - 713,862
Debt service
Principal 1,204,962 - - - 320,000 1,524,962
Interest and fees 328,785 - - - 596,645 925,430
Capital outlay 926,102 - 244,251 6,155,044 5,934,885 13,260,282
Total expenditures 42,929,812 4,983,303 2,935,298 6,155,044 10,987,825 67,991,282
Excess of revenues over (under) expenditures 1,286,503 1,508,154 (762,929) 47,683 (3,472,813) (1,393,402)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - - - 2,657,814 2,657,814
Transfers in 34,663 13,020 760,000 - 2,362,920 3,170,603
Transfers out (1,162,920) (2,200,000) - (47,683) (60,000) (3,470,603)
Total other financing sources (uses) (1,128,257) (2,186,980) 760,000 (47,683) 4,960,734 2,357,814
Net change in fund balances 158,246 (678,826) (2,929) - 1,487,921 964,412
Fund balances at beginning of year 9,589,228 5,783,797 81,154 1,547 5,793,350 21,249,076
Fund balances at end of year $ 9,747,474 $ 5,104,971 $ 78,225 $ 1,547 $ 7,281,271 $ 22,213,488
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, 2025
Net change in fund balances—total governmental funds $ 964,412
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 $ (5,843,671)
Capital outlay 6,164,915 321,244
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 120,000
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 1,524,962
Changes in accrual of interest and amortization of premiums and discounts
Change in accrued interest payable 8,900
Amortization of premiums and discounts 93,900 102,800
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in the governmental funds.
Change in compensated absences 325,000
Change in net pension liability and related deferred outflows/inflows of resources (51,365)
Change in net other post employment benefits liability
and related deferred outflows/inflows of resources 1,683,743 1,957,378
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 525,152
Change in internal balances representing the current year difference
between actual costs and amounts charged to business-type activities (369,414) 155,738
Change in net position of governmental activities $ 5,146,534
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, 2025
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
ASSETS
Current assets
Cash and investments $ 5,972,262 $ - $ 915,563 $ 6,887,825 $ 4,828,945
Receivables
Accounts 2,002,704 1,743,570 4,352 3,750,626 678,649
Leases - 119,230 - 119,230 -
Due from other governmental units - 1,059,398 - 1,059,398 -
Inventories 148,326 412,809 - 561,135 12,738
Prepaid items 62,909 90,430 3,035 156,374 489,726
Total current assets 8,186,201 3,425,437 922,950 12,534,588 6,010,058
Noncurrent assets
Restricted cash and investments 170,000 791,000 - 961,000 -
Leases receivable, less amounts due within one year - 7,353,721 - 7,353,721 -
Capital assets
Land 16,188 103,500 22,562 142,250 65,000
Land improvements - 120,713 1,940,544 2,061,257 301,715
Buildings, improvements and systems 46,602,391 91,911,900 2,535,088 141,049,379 1,668,215
Machinery and equipment 237,141 3,116,030 60,620 3,413,791 11,888,024
Construction in progress 457,534 6,675,033 - 7,132,567 -
Less accumulated depreciation (15,071,751) (53,950,948) (3,880,644) (72,903,343) (10,512,127)
Net capital assets 32,241,503 47,976,228 678,170 80,895,901 3,410,827
Net other postemployment benefits asset 63,768 212,560 - 276,328 170,048
Total noncurrent assets 32,475,271 56,333,509 678,170 89,486,950 3,580,875
Total assets 40,661,472 59,758,946 1,601,120 102,021,538 9,590,933
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 89,382 297,939 - 387,321 238,351
Related to other postemployment benefits 3,312 11,041 - 14,353 8,832
Total deferred outflows of resources 92,694 308,980 - 401,674 247,183
Total assets and deferred outflows of resources 40,754,166 60,067,926 1,601,120 102,423,212 9,838,116
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, 2025
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
LIABILITIES
Current liabilities
Accounts payable $ 93,258 $ 1,393,106 $ 21,545 $ 1,507,909 $ 959,443
Accrued liabilities 60,138 72,790 2,468 135,396 39,440
Due to other governmental units 877,881 5,504 - 883,385 7,600
Due to other funds - 223,438 - 223,438 -
Unearned revenues—prepaid fees - - 115,619 115,619 -
Bonds and other obligations, due within one year 503,422 1,142,700 1,000 1,647,122 -
Total current liabilities 1,534,699 2,837,538 140,632 4,512,869 1,006,483
Noncurrent liabilities
Bonds and other obligations, less amounts due within one year 9,069,441 6,624,392 11,000 15,704,833 -
Net pension liability 697,248 2,324,160 - 3,021,408 1,859,328
Total noncurrent liabilities 9,766,689 8,948,552 11,000 18,726,241 1,859,328
Total liabilities 11,301,388 11,786,090 151,632 23,239,110 2,865,811
DEFERRED INFLOWS OF RESOURCES
Related to leases - 7,472,951 - 7,472,951 -
Total liabilities and deferred inflows of resources 11,301,388 19,259,041 151,632 30,712,061 2,865,811
NET POSITION
Net investment in capital assets 22,705,703 39,278,026 678,170 62,661,899 3,410,827
Restricted
Debt service 95,400 756,200 - 851,600 -
Other postemployment benefits 63,768 212,560 - 276,328 170,048
Unrestricted 6,587,907 562,099 771,318 7,921,324 3,391,430
Total net position $ 29,452,778 $ 40,808,885 $ 1,449,488 71,711,151 $ 6,972,305
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 1,452,507
Net position of business-type activities $ 73,163,658
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, 2025
Governmental
Activities -
Business-type Activities - Enterprise Funds Internal
Marina and Service
Sewer Water Launch Ramp Total Funds
OPERATING REVENUES
Charges for services $ 10,359,263 $ 11,181,555 $ 327,222 $ 21,868,040 $ 11,289,536
Other 189,176 360,106 2,581 551,863 2,984,061
Total operating revenues 10,548,439 11,541,661 329,803 22,419,903 14,273,597
OPERATING EXPENSES
Administration 858,288 1,834,732 12,067 2,705,087 1,374,855
Insurance premiums and claims - - - - 7,106,744
Wastewater treatment 5,104,696 - - 5,104,696 -
Wastewater maintenance 3,033,445 - - 3,033,445 -
Filtration plant operations - 3,100,312 - 3,100,312 -
Water distribution - 3,826,478 - 3,826,478 -
Other operations - - 418,556 418,556 4,639,904
Depreciation 866,020 2,232,084 100,794 3,198,898 666,816
Total operating expenses 9,862,449 10,993,606 531,417 21,387,472 13,788,319
Operating income (loss) 685,990 548,055 (201,614) 1,032,431 485,278
NONOPERATING REVENUES (EXPENSES)
Investment earnings 29,562 91,439 1,603 122,604 23,099
Gain (loss) on sale of capital assets - - - - 16,775
Interest expense (166,812) (127,086) - (293,898) -
Bond issuance costs - (17,746) - (17,746) -
Total nonoperating revenue (expenses) (137,250) (53,393) 1,603 (189,040) 39,874
Income (loss) before capital contributions and transfers 548,740 494,662 (200,011) 843,391 525,152
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital grants and contributions - 3,055,637 - 3,055,637 -
Transfers in - - 300,000 300,000 -
Total capital contributions and transfers - 3,055,637 300,000 3,355,637 -
Change in net position 548,740 3,550,299 99,989 4,199,028 525,152
Net position at beginning of year, as previously reported 28,891,313 37,324,673 1,347,930 67,563,916 6,202,165
Adjustments to beginning net position 12,725 (66,087) 1,569 (51,793) 244,988
Net position at beginning of year, as restated 28,904,038 37,258,586 1,349,499 67,512,123 6,447,153
Net position at end of year $ 29,452,778 $ 40,808,885 $ 1,449,488 $ 71,711,151 $ 6,972,305
Net change in net position for total enterprise funds $ 4,199,028
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 369,414
Change in net position of business-type activities $ 4,568,442
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, 2025
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 $ 10,244,093 $ 11,421,123 $ 321,882 $ 21,987,098 $ 127,269
Receipts from interfund services provided 81,963 271,070 - 353,033 11,289,536
Other receipts - - - - 2,479,992
Payments to suppliers (6,678,736) (4,189,855) (284,029) (11,152,620) (9,138,727)
Payments to employees (1,052,755) (3,010,737) (108,795) (4,172,287) (2,788,508)
Payments for interfund services used (1,338,993) (1,792,812) (35,784) (3,167,589) (931,623)
Net cash provided by (used for) operating activities 1,255,572 2,698,789 (106,726) 3,847,635 1,037,939
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - - 300,000 300,000 -
Interfund borrowing - (1,286,168) - (1,286,168) -
Advances to component units - - - - 102,548
Net cash provided by (used for) noncapital financing activities - (1,286,168) 300,000 (986,168) 102,548
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from long-term debt 1,711,584 1,250,427 - 2,962,011 -
Issuance costs on long-term debt - (17,746) - (17,746) -
Capital grants and contributions 708,884 3,654,629 - 4,363,513 -
Purchases of capital assets (1,972,708) (5,158,954) (17,140) (7,148,802) (730,416)
Principal paid on capital debt (485,000) (1,093,130) - (1,578,130) -
Interest paid on capital debt (167,912) (131,286) - (299,198) -
Proceeds from sale of capital assets - - - - 16,775
Net cash provided by (used for) capital and related financing activities (205,152) (1,496,060) (17,140) (1,718,352) (713,641)
CASH FLOW FROM INVESTING ACTIVITIES
Investment earnings 29,562 91,439 1,603 122,604 23,099
Net increase (decrease) in cash and investments 1,079,982 8,000 177,737 1,265,719 449,945
Cash and investments at beginning of year 5,062,280 783,000 737,826 6,583,106 4,379,000
Cash and investments at end of year $ 6,142,262 $ 791,000 $ 915,563 $ 7,848,825 $ 4,828,945
Reconciliation of cash and investments to the Statement of Net Position
Cash and investments $ 5,972,262 $ - $ 915,563 $ 6,887,825 $ 4,828,945
Restricted cash and investments 170,000 791,000 - 961,000 -
$ 6,142,262 $ 791,000 $ 915,563 $ 7,848,825 $ 4,828,945
Reconciliation of operating income (loss) to net cash provided by (used for)
operating activities
Operating income (loss) $ 685,990 $ 548,055 $ (201,614) $ 1,032,431 $ 485,278
Adjustments to reconcile operating income (loss) to net cash provided by
(used for) operating activities
Depreciation expense 866,020 2,232,084 100,794 3,198,898 666,816
Change in assets and liabilities
Receivables (222,383) 150,532 2,048 (69,803) (376,800)
Inventories (3,593) 29,258 - 25,665 (7,311)
Prepaid items (1,429) 990 47 (392) (149,185)
Accounts payable (62,589) (210,729) (8,309) (281,627) 483,171
Unearned revenues - - (9,969) (9,969) -
Accrued liabilities (6,444) (51,401) 10,277 (47,568) (64,030)
Net cash provided by (used for) operating activities $ 1,255,572 $ 2,698,789 $ (106,726) $ 3,847,635 $ 1,037,939
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, 2025
Other Post-
Employment
Benefits Custodial
Trust Fund Funds
ASSETS
Cash and investments $ - $ 1,066,476
MERS Total Market Portfolio 28,489,873 -
Accounts receivable - 167,308
Total assets 28,489,873 1,233,784
LIABILITIES
Accounts payable - 5,310
Due to other governmental units - 1,004,618
Deposits held for others - 223,856
Total liabilities - 1,233,784
NET POSITION
Restricted for individuals, organizations, and other governments $ 28,489,873 $ -
The accompanying notes are an integral part of this statement.
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Page 54 of 292
City of Muskegon
STATEMENT OF CHANGES IN NET POSITION
Fiduciary Funds
For the year ended June 30, 2025
Other Post-
Employment
Benefits Custodial
Trust Fund Funds
ADDITIONS
Tax collections for other governments $ - $ 30,044,200
Other collections for third parties - 10,647,046
Employer contributions 1,775,879 -
Net investment income (loss) 2,588,321 -
Total additions 4,364,200 40,691,246
DEDUCTIONS
Payment of taxes to other governments - 30,044,200
Other payments to third parties - 10,647,046
Benefit payments 2,277,224 -
Administrative expenses 62,949 -
Total deductions 2,340,173 40,691,246
Change in net position 2,024,027 -
Net position at beginning of year 26,465,846 -
Net position at end of year $ 28,489,873 $ -
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, 2025
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 $ 236,629 $ 518,734 $ 38,922 $ 60,120 $ - $ 854,405
Accounts receivable - 17,912 - - - 17,912
Total current assets 236,629 536,646 38,922 60,120 - 872,317
Noncurrent assets
Capital assets, net
Nondepreciable 400,000 - - - - 400,000
Depreciable 71,937 - - - - 71,937
Total noncurrent assets 471,937 - - - - 471,937
Total assets 708,566 536,646 38,922 60,120 - 1,344,254
LIABILITIES
Current liabilities
Accounts payable - 80,123 - - 133,849 213,972
Accrued liabilities 1,400 1,493 - - - 2,893
Due to other governmental units - 67 - - - 67
Bonds and other obligations, due
within one year 285,000 - - - - 285,000
Total current liabilities 286,400 81,683 - - 133,849 501,932
Noncurrent liabilities
Advances from primary government - - - - 117,833 117,833
Total liabilities 286,400 81,683 - - 251,682 619,765
NET POSITION
Net investment in capital assets 186,937 - - - - 186,937
Unrestricted 235,229 454,963 38,922 60,120 (251,682) 537,552
Total net position $ 422,166 $ 454,963 $ 38,922 $ 60,120 $ (251,682) $ 724,489
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, 2025
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 8,452 - 200,000 191,548 - - - - 191,548
Total Local Development Finance
Authority—SmartZone 181,100 - 200,000 18,900 - - - - 18,900
Downtown Development Authority
Community and economic development 659,735 134,982 - - (524,753) - - - (524,753)
Tax Increment Finance Authority
Community and economic development 50,000 - - - - (50,000) - - (50,000)
Lakeside Corridor Improvement Authority
Community and economic development 6,374 - - - - - (6,374) - (6,374)
Brownfield Redevelopment Authorities
Community and economic development 967,750 - - - - - - (967,750) (967,750)
Interest on long-term debt 3,759 - - - - - - (3,759) (3,759)
Total Brownfield Redevelopment Authorities 971,509 - - - - - - (971,509) (971,509)
Total discretely presented component units $ 1,868,718 $ 134,982 $ 200,000 18,900 (524,753) (50,000) (6,374) (971,509) (1,533,736)
General revenues
Property taxes 250,064 516,659 48,776 36,584 1,245,898 2,097,981
Grants and contributions not restricted to specific programs 3,136 - 9,497 - 25,958 38,591
Unrestricted investment income 357 2,071 136 160 1,204 3,928
Total general revenues 253,557 518,730 58,409 36,744 1,273,060 2,140,500
Change in net position 272,457 (6,023) 8,409 30,370 301,551 606,764
Net position at beginning of year 149,709 460,986 30,513 29,750 (553,233) 117,725
Net position at end of year $ 422,166 $ 454,963 $ 38,922 $ 60,120 $ (251,682) $ 724,489
The accompanying notes are an integral part of this statement.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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 nine 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, Adelaide Pointe, and Highpoint Flats.
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, 2025
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, 2025, 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, 2024, the date
of its latest audited financial statements is as follows:
Total assets and deferred outflows of resources $ 5,252,054
Total liabilities and deferred inflows of resources (692,609)
Total net position $ 4,559,445
Total operating income $ 3,070,802
Total operating expenses (2,639,205)
Total nonoperating revenues 1,334
Change in net position $ 432,931
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025
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, 2025
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, 2025
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, 2025
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 deferred inflows from 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, 2025
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, 2025
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 2024 state taxable value for real/personal property of the City totaled approximately $819,300,000 of
which approximately $61,690,000 was captured by the component units. The ad valorem taxes levied
consisted of 9.6127, 2.8838 and .0605 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 2024 financial statements have been reclassified to conform
to the 2025 presentation.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025, actual expenditures exceeded appropriations for:
Final
Budget Actual
Major Street and Trunkline Fund $ 4,688,483 $ 4,983,303
Trinity Health Arena Fund 2,826,498 2,935,298
These over-expenditures were funded with available fund balance.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE C—DEPOSITS AND INVESTMENTS
As of June 30, 2025, the City had the following investments:
Weighted
Average
Maturity
Fair Value (Months) S&P Percent
Investment Type
Money market funds $ 151,460 1 not rated 0.2 %
Negotiable certificates of deposit 991,520 16 not rated 2.0
U.S. agency obligations 11,066,543 159 AA+ 22.0
Local units of government obligations 99,470 2 A to AA 0.2
External investment pool 9,555,534 3 AAA 19.0
MERS investment funds 28,489,873 N/A not rated 56.6
Total fair value $ 50,354,400 100.0 %
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 5.5%
Government National Mortgage Association obligations 5.7%
Federal National Mortgage Association obligations 10.7%
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, 2025, $14,007,479 of the City’s bank balance of $14,507,479 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, 2025
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, 2025, restricted
cash and investments in the Sewer and Water Fund of $170,000 and $791,000, 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 seven 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, 2025
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.
Celebration Square Splash Pad 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 costs related to the
Celebration Square Splash Pad 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,
2025 follows:
Lakeshore Celebration
Trails Cemetery Marquette Staley Muskegon Events and Square
Improvement Perpetual and Elliot Charity Parks Sponsorships Splash Pad
Fund Care Fund Park Fund Fund Fund Fund Fund Totals
Revenues
Contributions $ 1,426 $ - $ - $ - $ - $ - $ 5,000 $ 6,426
Dividends and interest 2,347 42,663 2,739 13,968 772 200 841 63,530
Realized and unrealized gain
(loss) on investments 8,935 173,960 11,174 55,125 2,916 - 2,653 254,763
12,708 216,623 13,913 69,093 3,688 200 8,494 324,719
Expenses
Grants and scholarships 13,106 - - 37,600 4,659 21,250 12,000 88,615
Administration fees 795 10,593 1,788 6,124 274 300 274 20,148
Revenues over expenses (1,193) 206,030 12,125 25,369 (1,245) (21,350) (3,780) 215,956
Total assets at beginning of year 90,526 1,594,960 102,941 531,587 29,868 23,447 29,635 2,402,964
Total assets at end of year 89,333 1,800,990 115,066 556,956 28,623 2,097 25,855 2,618,920
Less assets recorded as those
of the Foundation (69,463) - (115,066) (556,956) (21,322) (2,097) (25,855) (790,759)
Assets reported on the Balance
Sheet/Statement of Net Position $ 19,870 $ 1,800,990 $ - $ - $ 7,301 $ - $ - $ 1,828,161
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE D—ASSETS MANAGED BY OTHERS—Continued
Summary of the Community Foundation Funds—Continued
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
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, 2025.
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, 2025
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, 2025:
Assets at Fair Value as of June 30, 2025
Level 1 Level 2 Level 3 Total
Money market funds $ - $ 151,460 $ - $ 151,460
Negotiable certificates of deposit 991,520 - - 991,520
U.S. agency obligations 11,066,543 - - 11,066,543
Local units of government obligations 99,470 - - 99,470
External investment pools - 9,555,534 - 9,555,534
MERS investment funds - 28,489,873 - 28,489,873
Assets managed by others - 1,828,161 - 1,828,161
Total assets at fair value $ 12,157,533 $ 40,025,028 $ - $ 52,182,561
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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 $218,200,
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 annual payments totaling
approximately $447,300, 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
$10,900, 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, 2025, the City recognized $382,816 and $126,784 in lease revenue for
governmental activities and business-type activities, respectively. For the year ended June 30, 2025, the City
also recognized $227,069 and $91,439 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, 2025, the balances of these deferred inflows
of resources were $7,858,774 and $7,472,951 for governmental activities and business-type activities,
respectively.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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
2026 $ 380,611 $ 230,929 $ 119,230 $ 144,666
2027 403,261 216,158 129,008 142,466
2028 476,069 200,201 119,134 140,148
2029 493,274 183,044 108,593 138,123
2030 509,886 165,264 117,740 136,018
2031-2035 1,214,753 661,249 739,770 641,992
2036-2040 1,091,926 526,414 1,031,869 559,209
2041-2045 1,290,210 358,753 1,165,295 449,278
2046-2050 1,123,726 212,686 1,178,963 339,141
2051-2055 601,327 91,294 1,509,069 203,491
2056-2060 202,804 18,029 1,254,280 57,372
2061-2065 70,927 4,074 - -
$ 7,858,774 $ 2,868,095 $ 7,472,951 $ 2,951,904
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE G—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Balance Balance
July 1, 2024 Additions Deductions June 30, 2025
Governmental activities:
Capital assets, not being depreciated:
Land $ 14,835,602 $ - $ - $ 14,835,602
Construction in progress 3,699,703 2,812,538 4,231,449 2,280,792
Total capital assets, not being depreciated 18,535,305 2,812,538 4,231,449 17,116,394
Capital assets, being depreciated:
Land improvements 9,451,789 416,680 - 9,868,469
Buildings and improvements 62,163,869 1,464,322 - 63,628,191
Furniture, vehicles and equipment 21,779,458 2,765,527 91,849 24,453,136
Infrastructure 80,505,893 3,667,713 - 84,173,606
Shared improvements 6,905,293 - - 6,905,293
Total capital assets, being depreciated 180,806,302 8,314,242 91,849 189,028,695
Less accumulated depreciation:
Land improvements 2,931,072 306,605 - 3,237,677
Buildings and improvements 22,303,765 1,240,955 - 23,544,720
Furniture, vehicles and equipment 14,718,301 1,328,597 91,849 15,955,049
Infrastructure 46,246,237 3,567,911 - 49,814,148
Shared improvements 6,144,049 66,419 - 6,210,468
Total accumulated depreciation 92,343,424 6,510,487 91,849 98,762,062
Total capital assets, being
depreciated, net 88,462,878 1,803,755 - 90,266,633
Capital assets, net $ 106,998,183 $ 4,616,293 $ 4,231,449 $ 107,383,027
Business-type activities:
Capital assets, not being depreciated:
Land $ 142,250 $ - $ - $ 142,250
Construction in progress 12,209,738 7,861,949 12,939,120 7,132,567
Total capital assets, not being depreciated 12,351,988 7,861,949 12,939,120 7,274,817
Capital assets, being depreciated:
Land improvements 2,044,117 17,140 - 2,061,257
Buildings, improvements and systems 128,762,853 12,286,526 - 141,049,379
Machinery and equipment 3,413,791 - - 3,413,791
Total capital assets, being depreciated 134,220,761 12,303,666 - 146,524,427
Less accumulated depreciation:
Land improvements 1,885,518 13,211 - 1,898,729
Buildings, improvements and systems 64,707,407 3,117,427 - 67,824,834
Machinery and equipment 3,111,520 68,260 - 3,179,780
Total accumulated depreciation 69,704,445 3,198,898 - 72,903,343
Total capital assets, being
depreciated, net 64,516,316 9,104,768 - 73,621,084
Capital assets, net $ 76,868,304 $ 16,966,717 $ 12,939,120 $ 80,895,901
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE G—CAPITAL ASSETS—Continued
Depreciation
Depreciation expense was charged to functions as follows:
Governmental activities:
Public representation services $ 11,104
Financial services 21,542
Public safety 418,499
Public works 79,429
Highways, streets and bridges 3,763,619
Community and economic development 173,132
Culture and recreation 1,348,574
General administration 27,772
Internal Service Fund depreciation 666,816
$ 6,510,487
Business-type activities:
Sewer $ 866,020
Water 2,232,084
Marina and Launch Ramp 100,794
$ 3,198,898
Balance Balance
July 1, 2024 Additions Deductions June 30, 2025
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 3,553,673 172,648 - 3,726,321
Total capital assets, being
depreciated, net 244,585 (172,648) - 71,937
Capital assets, net $ 644,585 $ (172,648) $ - $ 471,937
Depreciation expense was charged to economic development.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2025 is as follows:
Due To/From Othe r Funds:
Re ce ivable Fund Payable Fund Amount
General Fund Trinity Health Arena Fund $ 314,756
General Fund Lead Abatement Fund 159,070
General Fund Healthy Homes Fund 194,111
General Fund Community Development Block Grant Fund 103,324
General Fund Water Fund 223,438
$ 994,699
The outstanding balances between funds result from the payable funds having negative positions in the City’s
cash and investment pool.
Interfund Transfers:
Transfers In Amount Transfers Out Amount
General Fund $ 34,663 State Grants Fund $ 34,663
Major Street and Trunkline Fund 13,020 State Grants Fund 13,020
Local Streets Fund 92,000 General Fund 92,000
Local Streets Fund 2,200,000 Major Street and Trunkline Fund 2,200,000
Farmer's Market and Kitchen 242 Fund 7,000 General Fund 7,000
Farmer's Market and Kitchen 242 Fund 60,000 Senior Millage Fund 60,000
Trinity Health Arena Fund 760,000 General Fund 760,000
Lakeshore BID Fund 3,920 General Fund 3,920
Marina and Launch Ramp Fund 300,000 General Fund 300,000
$ 3,470,603 $ 3,470,603
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS—Continued
The General Fund transferred funds to the Trinity Health Arena Fund, Local Streets, Farmer’s Market and
Kitchen 242 Fund, Lakeshore BID Fund, and Marina and Launch Ramp Fund for operation subsidies. The
State Grants Fund transferred funds to the General Fund and the Major Street and Trunkline 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, 2025.
Balance Balance
July 1, 2024 Additions Deductions June 30, 2025
Governmental activities:
Short-term note $ 549,995 $ - $ 549,995 $ -
The purpose of all short-term borrowings were to provide resources for infill housing within the City of
Muskegon. The form of financing used was a short-term non-revolving note payable. Interest amounts were
at a variable interest rate of 2.5 percent above the prime rate. Borrowed amounts were repaid as infill housing
units were sold.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025.
Balance
July 1, 2024, Balance Due Within
as restated Additions Deductions June 30, 2025 One Year
Governmental activities:
Public placement debt
General obligation debt $ 26,505,000 $ - $ 1,100,000 $ 25,405,000 $ 1,140,000
Discount (113,650) - (7,200) (106,450) -
Premium 602,827 - 101,100 501,727 -
Direct borrowings and
direct placements
Installment purchase
agreements 1,218,703 - 424,962 793,741 436,000
Compensated absences* 3,777,000 - 325,000 3,452,000 345,000
Governmental activities
long-term liabilities $ 31,989,880 $ - $ 1,943,862 $ 30,046,018 $ 1,921,000
Business-type activities:
Public placement debt
Revenue obligations $ 15,613,476 $ 2,869,609 $ 1,578,130 $ 16,904,955 $ 1,602,122
Compensated absences* 394,000 53,000 - 447,000 45,000
Business-type activities
long-term liabilities $ 16,007,476 $ 2,922,609 $ 1,578,130 $ 17,351,955 $ 1,647,122
Component units:
Public placement debt
General obligation debt $ 560,000 $ - $ 275,000 $ 285,000 $ 285,000
Premium 2,824 - 2,824 - -
Component unit long-
term liabilities $ 562,824 $ - $ 277,824 $ 285,000 $ 285,000
*The change in the compensated absences liability is presented as a net change
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, 2025
NOTE J—LONG-TERM DEBT—Continued
Public Placement Debt—Continued
General obligation debt outstanding as of June 30, 2025 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 $ 2,590,000
2019 Capital Improvement Bonds 19,420,000 1.93% - 3.58% December 2049 18,170,000
2020A Capital Improvement Bonds 4,325,000 2.5% - 5% October 2040 2,940,000
2020B Capital Improvement Bonds 2,055,000 .68% - 3.2% October 2041 1,705,000
$ 25,405,000
Component units:
2012 LDFA Tax Increment Refunding Bonds $ 4,100,000 3% November 2025 $ 285,000
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, 2025 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 $ 840,000
2019 Water Supply System Junior Lien Bond 1,600,000 2% October 2025 1,325,000
2019 Sanitary Sewer System Junior Lien Bond 2,875,000 2% October 2033 2,385,000
2020 Water Supply System Junior Lien Bond 3,844,750 2% April 2041 2,845,390
2020 Sanitary Sewer System Junior Lien Bond 3,772,000 2% April 2041 3,078,498
2022B Water Supply System Junior Lien Bond 240,000 1.88% October 2045 240,000
2022 Sanitary Sewer System Junior Lien Bond 2,646,022 1.88% October 2043 2,528,022
2022A Water Supply System Junior Lien Bond 1,037,748 1.88% October 2045 989,618
2023 Sanitary Sewer System Junior Lien Bond 1,551,343 1.88% October 2044 1,471,343
2023 Water Supply System Junior Lien Bond 886,405 1.88% April 2046 886,405
2024 Water Supply System Junior Lien Bond 315,679 2% April 2047 315,679
$ 16,904,955
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 30
percent of net revenues through 2025. The total principal and interest remaining to be paid on the bond is
$848,925. Principal and interest paid for the year ended June 30, 2025 and total customer net revenues were
$851,616 and $2,871,578, respectively.
During the year ended June 30, 2025, revenue obligations were forgiven and recognized as capital grants and
contributions in the Water Fund for $2,361,757.
The City was in compliance in all material respects with all the revenue bond ordinances at June 30, 2025.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025 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 $ 354,260
2023 Equipment Installment Loan 761,603 4.40% March 2028 439,481
$ 793,741
For governmental activities, pension liabilities (i.e. net pension and OPEB liabilities), claims and judgments
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, 2025 was approximately $737,600. 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, 2025 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
2026 $ 1,140,000 $ 856,998 $ 436,490 $ 20,218 $ 1,602,122 $ 318,374
2027 1,180,000 817,356 232,082 9,571 892,654 292,013
2028 1,220,000 773,695 125,169 2,306 1,117,126 270,436
2029 1,270,000 727,804 - - 1,051,797 250,060
2030 1,320,000 679,518 - - 956,122 231,720
2031-2035 4,645,000 2,827,784 - - 4,766,483 878,227
2036-2040 4,170,000 2,200,986 - - 4,825,615 422,686
2041-2045 4,640,000 1,450,500 - - 1,678,036 48,916
2046-2050 5,820,000 542,370 - - 15,000 -
$ 25,405,000 $ 10,877,011 $ 793,741 $ 32,095 $ 16,904,955 $ 2,712,432
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE J—LONG-TERM DEBT—Continued
Component Units
Year Ending Public Placement Debt
June 30, Principal Interest
2026 $ 285,000 $ 4,275
Annual debt service requirements to maturity by type of debt as of June 30, 2025 follow:
Installment
Revenue Purchase
General Obligation Debt Obligations Agreements
Year Ending Governmental Component Business-type Governmental
June 30, Activities Units Activities Activities
2026 $ 1,996,998 $ 289,275 $ 1,920,496 $ 456,708
2027 1,997,356 - 1,184,667 241,653
2028 1,993,695 - 1,387,562 127,475
2029 1,997,804 - 1,301,857 -
2030 1,999,518 - 1,187,842 -
2031-2035 7,472,784 - 5,644,710 -
2036-2040 6,370,986 - 5,248,301 -
2041-2045 6,090,500 - 1,726,952 -
2046-2050 6,362,370 - 15,000 -
$ 36,282,011 $ 289,275 $ 19,617,387 $ 825,836
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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 2025 and 2024 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, 2025 $ 296,878 $ 461,503 $ 357,804 $ 400,577
June 30, 2024 651,542 147,906 502,570 296,878
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, 2025, the claims liability including incurred but
not reported claims was $162,416. 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 2025 and 2024
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, 2025 $ 45,145 $ 6,672,118 $ 6,554,847 $ 162,416
June 30, 2024 35,406 5,460,637 5,450,898 45,145
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025 with a remaining amount of approximately $25,399,000. The
majority of commitments in the Sewer and Water funds are being financed by grants and long-term debt, and
the remainder are being funded with grants and available funds as follows:
Fund Amount
General $ 7,223,000
Major Street and Trunkline 3,069,000
Farmers Market and Kitchen 242 3,000
DDA 17,000
Public Improvement 234,000
State Grant 653,000
Sewer 523,000
Water 13,297,000
Marina and Launch Ramp 4,000
Public Service Building 141,000
Equipment 235,000
$ 25,399,000
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, 2025, the City has committed $382,132 of fund balance in
the General Fund to this program.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025, the City abated property taxes revenues totaling $110,913 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, 2025, the City abated property taxes revenues totaling $365,913 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, 2025, the City abated property taxes revenues totaling $179,081 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, 2025
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, 2024 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 23
Active employees 43
Total employees covered by MERS 404
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, 2025, the City had a flat-dollar employer contribution to the Plan of $4,975,764
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, 2024, 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, 2025
NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued
Defined Benefit Pension Plan—Continued
Actuarial Assumptions
The total pension liability in the December 31, 2024 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 6.93 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-2021.
The actuarial assumptions used in valuation were based on the results of the most recent actuarial experience
study of 2019 through 2023.
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% 4.66% 0.93% 2.50% 0.43%
Private assets 20.0% 9.00% 1.80% 2.50% 1.30%
Total 100.0% 6.93% 4.43%
Discount Rate
The discount rate used to measure the total pension liability was 7.18 percent for 2024. 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, 2025
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, 2024 $ 133,751,957 $ 86,905,935 $ 46,846,022
Changes for the year
Service cost 451,176 - 451,176
Interest 9,247,737 - 9,247,737
Difference between expected and
actual experience 808,162 - 808,162
Changes in assumptions (130,244) - (130,244)
Contributions - employer - 4,314,102 (4,314,102)
Contributions - employee - 236,534 (236,534)
Net investment income (loss) - 6,376,438 (6,376,438)
Administrative expenses - (187,502) 187,502
Benefit payments including refund of
employee contributions (10,357,946) (10,357,946) -
Other changes (86) - (86)
Net changes 18,799 381,626 (362,827)
Balance at December 31, 2024 $ 133,770,756 $ 87,287,561 $ 46,483,195
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 7.18 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 (6.18 percent) or 1-percentage-point higher (8.18 percent) than the current rate:
1% Decrease Current Discount 1% Increase
(6.18%) Rate (7.18%) (8.18%)
City's net pension liability $ 60,407,434 $ 46,483,195 $ 34,717,080
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025, the City recognized pension expense of $5,033,156. At June 30, 2025, 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 $ 3,471,680 $ -
Contributions subsequent to the
measurement date* 2,487,096 -
Total $ 5,958,776 $ -
*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,
2026.
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
2026 $ 1,545,068
2027 2,733,397
2028 (736,423)
2029 (70,362)
Payables to the Pension Plan
At June 30, 2025, the City reported a payable of $414,516 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2025.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025, City and employee
contributions were $1,825,047 and $782,946, 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, 2025, forfeitures reduced the City’s pension expense by $116,979.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The Plan, available to all full-time employees at their option, permits participants to defer
a portion of their salary until future years. Payments from the deferred compensation plan are not available to
participants until termination, retirement, death, or unforeseeable emergency. Active participants are allowed
to borrow from their accumulated assets for limited purposes such as family education costs, medical costs, or
down payment for a new home. The City must approve program loans.
The Plan has created a trust for the exclusive benefit of the Plan’s participants and beneficiaries under rules
provided by Internal Revenue Code Section 401(f).
NOTE N—OTHER POSTEMPLOYMENT BENEFITS
Retiree Healthcare Plan
Plan Description
The City’s defined benefit OPEB Plan, the City of Muskegon Retiree Healthcare Plan (OPEB Plan), provides
healthcare benefits to certain employees and their spouses upon retirement. The Plan is a single-employer
defined benefit plan administered by the City Commission. The benefits are provided under collective
bargaining agreements and at the discretion of the City Commission. The OPEB Plan does not issue a
publicly available report.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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, 2025 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, 2025, the City made payments for postemployment healthcare benefits of $2,089,141.
Net OPEB Liability (Asset)
The City’s net OPEB liability (asset) was measured as of June 30, 2025, and the total OPEB liability used to
calculate the net OPEB liability (asset) was determined by an actuarial valuation as June 30, 2024, which was
rolled forward to June 30, 2025.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Actuarial Assumptions
The total OPEB liability in the June 30, 2025 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 6.93 percent (including inflation), net of administrative and investment expenses
Healthcare cost trend rates Pre-Medicare: 7.25 percent for one year, then 7.5 percent graded down by
.25 per year to an ultimate rate of 4.5 percent
Post-Medicare: 5.5 percent for one year, then 7.5 percent 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% 4.66% 0.93% 2.50% 0.43%
Private investments 20.0% 9.00% 1.80% 2.50% 1.30%
Total 100.0% 6.93% 4.43%
Discount Rate
The discount rate used to measure the total OPEB liability was 6.93 percent. The projection of cash flows
used to determine the discount rate assumed that the City will first use assets to pay benefits and then pay
benefits on a pay-as-you-go basis. Based on this assumption, the retirement 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 to be covered by the projected assets (the
“depletion date” is not applicable to 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
June 30, 2024 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, 2025
NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued
Retiree Healthcare Plan—Continued
Changes in the Net OPEB Liability (Asset)
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
(a) (b) (a)-(b)
Balance at July 1, 2024 $ 23,886,733 $ 26,465,846 $ (2,579,113)
Changes for the year
Service cost 34,535 - 34,535
Interest 1,594,785 - 1,594,785
Difference between expected and
actual experience 299,009 - 299,009
Changes of assumptions 700,827 - 700,827
Contributions - employer - 1,775,879 (1,775,879)
Net investment income (loss) - 2,588,321 (2,588,321)
Administrative expenses - (62,949) 62,949
Benefit payments including refund of
employee contributions (2,277,224) (2,277,224) -
Net changes 351,932 2,024,027 (1,672,095)
Balance at June 30, 2025 $ 24,238,665 $ 28,489,873 $ (4,251,208)
Plan fiduciary net postion as a percentage of total OPEB liability 117.54%
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 6.93
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 (5.93 percent) or 1-percentage-point higher (7.93 percent) than the
current rate:
1% Decrease Current Discount 1% Increase
(5.93%) Rate (6.93%) (7.93%)
City's net OPEB liability (asset) $ (1,982,153) $ (4,251,208) $ (6,168,988)
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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) $ (6,268,490) $ (4,251,208) $ (1,887,270)
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, 2025, the City recognized OPEB expense of $(105,395). At June 30, 2025, 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 $ 32,037 $ -
Changes in assumptions 75,089 -
Net difference between projected
and actual net investment income 113,689 -
Total $ 220,815 $ -
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
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
2026 $ 342,373
2027 464,120
2028 (434,584)
2029 (151,094)
Payables to the OPEB Plan
At June 30, 2025, 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, 2025, City and employee contributions were $1,115,111 and $554,867,
respectively.
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE O—CHANGE IN ACCOUNTING PRINCIPLE
For the year ended June 30, 2025, the City implemented the following new pronouncement: GASB Statement
No. 101—Compensated Absences.
Governmental Accounting Standards Board (GASB) Statement No. 101—Compensated Absences, was issued
by the GASB in June 2022. The objective of this Statement is to better meet the information needs of
financial statement users by aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. The unified recognition and measurement model in this
Statement will result in a liability for compensated absences that more appropriately reflects when a
government incurs an obligation. In addition, the model can be applied consistently to any type of
compensated absence and will eliminate potential comparability issues between governments that offer
different types of leave. The model also will result in a more robust estimate of the amount of compensated
absences that a government will pay or settle, which will enhance the relevance and reliability of information
about the liability for compensated absences. See below for the impact on net position as of July 1, 2024.
Governmental Activities
Bonds and Other Internal
Obligations Balances Net Position
Balances as of July 1, 2024 $ 31,210,004 $ 503,448 $ 65,574,052
Change in accounting principle 779,876 (76,935) (856,811)
Balances as of July 1, 2024, as restated $ 31,989,880 $ 426,513 $ 64,717,241
Business-type Activities
Bonds and Other Internal
Obligations Balances Net Position
Balances as of July 1, 2024 $ 15,955,683 $ (503,448) $ 68,570,074
Change in accounting principle 51,793 76,935 25,142
Balances as of July 1, 2024, as restated $ 16,007,476 $ (426,513) $ 68,595,216
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City of Muskegon
NOTES TO FINANCIAL STATEMENTS
June 30, 2025
NOTE O—CHANGE IN ACCOUNTING PRINCIPLE—Continued
Sewer Fund Water Fund
Bonds and Other Bonds and Other
Obligations Net Position Obligations Net Position
Balances as of July 1, 2024 $ 8,705,342 $ 28,891,313 $ 7,241,772 $ 37,324,673
Change in accounting principle (12,725) 12,725 66,087 (66,087)
Balances as of July 1, 2024, as restated $ 8,692,617 $ 28,904,038 $ 7,307,859 $ 37,258,586
Governmental Activities -
Marina and Launch Ramp Fund Internal Service Funds
Bonds and Other Bonds and Other
Obligations Net Position Obligations Net Position
Balances as of July 1, 2024 $ 5,569 $ 1,347,930 $ 244,988 $ 6,202,165
Change in accounting principle (1,569) 1,569 (244,988) 244,988
Balances as of July 1, 2024, as restated $ 4,000 $ 1,349,499 $ - $ 6,447,153
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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, 2025
(with comparative actual amounts for the year ended June 30, 2024)
2025 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
REVENUES
Taxes
City income taxes $ 12,750,000 $ 12,650,000 $ 13,024,301 $ 374,301 $ 12,243,618
Property taxes 9,376,585 9,376,585 9,587,980 211,395 9,034,793
Excise tax distribution 654,000 700,754 700,754 - 653,283
Industrial facilities taxes 155,000 243,500 244,381 881 180,742
Payments in lieu of taxes 689,045 754,045 754,422 377 702,919
Total taxes 23,624,630 23,724,884 24,311,838 586,954 22,815,355
Licenses and permits
Business licenses 43,500 40,000 39,505 (495) 37,410
Liquor licenses 58,000 54,000 51,092 (2,908) 70,052
Marihuana facilities licenses 150,000 160,000 155,000 (5,000) 180,000
Cable TV fees 350,000 270,000 266,262 (3,738) 312,085
Rental property registration 530,000 555,000 515,993 (39,007) 573,965
Burial permits 60,000 66,000 65,115 (885) 62,520
Building permits 1,050,000 1,285,000 1,414,736 129,736 877,387
Electrical permits 210,000 182,000 192,564 10,564 175,741
Plumbing permits 120,750 138,000 139,708 1,708 122,162
Mechanical permits 157,500 136,500 131,080 (5,420) 123,991
Vacant building fees 15,500 1,000 700 (300) 4,458
Total licenses and permits 2,745,250 2,887,500 2,971,755 84,255 2,539,771
Intergovernmental revenues
Federal grants 636,294 802,605 788,724 (13,881) 299,779
State
Grants 1,150,000 1,184,997 1,275,646 90,649 1,238,036
State shared revenue 5,650,382 5,450,382 5,370,129 (80,253) 5,321,361
Total intergovernmental revenues—State 6,800,382 6,635,379 6,645,775 10,396 6,559,397
Local 50,000 180,000 180,000 - 50,000
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2025
(with comparative actual amounts for the year ended June 30, 2024)
2025 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Charges for services
Tax administration fees $ 431,000 $ 450,000 $ 480,374 $ 30,374 $ 445,099
Utility administration fees 325,500 325,500 325,500 - 310,000
Reimbursement for elections 25,000 71,000 102,515 31,515 181
Brownfield authority admin fee 265,357 265,357 265,357 - 273,673
Indirect cost reimbursements 2,134,808 2,134,808 2,134,808 - 1,748,335
Site plan review fee 8,500 9,000 8,750 (250) 6,000
Sale of cemetery lots 35,000 32,310 34,400 2,090 31,110
Police miscellaneous 268,500 170,450 188,662 18,212 214,797
Police impound fees 35,000 35,000 26,850 (8,150) 28,410
Landlord's alert fee 45,000 45,000 26,509 (18,491) 41,010
Fire protection—state property 100,000 96,112 96,112 - 99,647
Zoning fees 15,000 45,000 45,780 780 14,850
Clerk fees 3,000 2,000 1,790 (210) 36,098
Clerk fees—passport fees 80,000 66,000 65,390 (610) 77,575
Tax abatement application fees 1,000 10,000 7,250 (2,750) 2,772
Treasurer fees 65,000 71,000 58,416 (12,584) 80,812
False alarm fees 5,000 6,550 6,495 (55) 5,511
Miscellaneous cemetery income 31,000 24,500 23,458 (1,042) 25,762
Downtown social district 42,000 5,000 2,759 (2,241) 37,925
Fire miscellaneous 9,000 2,600 3,130 530 12,547
Sanitation stickers 665,500 694,500 686,525 (7,975) 681,665
Lot cleanup fees 30,000 35,850 23,590 (12,260) 27,760
Special events reimbursements 35,000 58,000 55,248 (2,752) 31,394
Recreation program fees 68,000 65,000 64,430 (570) 36,677
Parking 860,000 950,000 1,075,325 125,325 898,404
Other charges for services 10,000 15,000 14,000 (1,000) 8,000
Total charges for services 5,593,165 5,685,537 5,823,423 137,886 5,176,014
Fines and forfeitures
Income tax—penalty and interest 270,000 295,000 294,019 (981) 315,526
Late fees on current taxes 22,000 24,000 25,949 1,949 28,144
Interest on late invoices 24,000 21,500 21,622 122 22,220
Parking fines 200,000 315,000 320,336 5,336 179,906
Court fines 70,000 50,000 56,168 6,168 77,450
Civil infractions 10,000 18,000 18,785 785 15,520
Total fines and forfeitures 596,000 723,500 736,879 13,379 638,766
Investment earnings and rental income
Interest income 450,000 946,200 1,037,743 91,543 1,112,306
Net increase (decrease) in the fair value of investments 150,000 260,000 324,690 64,690 175,997
City right of way rental 4,400 12,000 12,000 - 4,400
Fire station lease—Central Dispatch 465,100 465,100 340,931 (124,169) 331,837
Parking rentals 65,000 - - - 56,800
McGraft Park rentals 140,000 110,690 109,740 (950) 133,743
Other park rentals 51,200 88,835 83,150 (5,685) 56,391
Total investment earnings and rental income 1,325,700 1,882,825 1,908,254 25,429 1,871,474
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2025
(with comparative actual amounts for the year ended June 30, 2024)
2025 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Other
Sale of land and assets $ - $ 77 $ 77 $ - $ -
Police sale and auction proceeds 1,100 10 394 384 2,575
CDBG program reimbursements 219,760 255,393 255,948 555 239,832
Fisherman's Landing reimbursement 25,000 26,091 26,091 - 25,625
Contributions 50,000 138,100 156,171 18,071 89,681
Contributions—Veteran's Park maintenance 40,000 24,673 24,673 - 70,026
Community Foundation for Muskegon County 10,000 11,366 11,366 - 10,979
Miscellaneous and sundry 110,000 382,718 374,947 (7,771) 404,007
Total other 455,860 838,428 849,667 11,239 842,725
Total revenues 41,827,281 43,360,658 44,216,315 855,657 40,793,281
EXPENDITURES
Current
Public representation services
City commission 139,575 153,723 148,549 5,174 139,725
City promotions and public relations 113,148 113,148 103,164 9,984 147,899
City manager 883,705 914,185 898,718 15,467 943,118
Contributions to outside agencies 347,176 492,176 462,565 29,611 904,736
City attorney 450,000 626,092 623,699 2,393 609,788
Total public representation services 1,933,604 2,299,324 2,236,695 62,629 2,745,266
Administrative services
City clerk 806,182 907,634 831,294 76,340 776,960
Civil service 324,016 332,950 307,693 25,257 300,475
Total administrative services 1,130,198 1,240,584 1,138,987 101,597 1,077,435
Financial services
Finance administration 847,590 858,290 844,787 13,503 781,519
Assessing 421,000 461,000 459,351 1,649 443,418
Income tax administration 584,101 618,045 615,201 2,844 491,806
Information systems 946,467 925,545 864,748 60,797 736,693
City treasurer 723,396 701,070 667,771 33,299 674,083
Pension administration 3,888,096 3,888,096 3,886,524 1,572 2,851,374
Total financial services 7,410,650 7,452,046 7,338,382 113,664 5,978,893
Public safety
Police department 12,660,509 12,610,000 12,505,384 104,616 12,057,971
Fire department 4,429,813 5,022,440 4,590,930 431,510 4,290,087
Building inspections 1,979,050 2,208,310 2,229,356 (21,046) 2,107,726
Total public safety 19,069,372 19,840,750 19,325,670 515,080 18,455,784
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2025
(with comparative actual amounts for the year ended June 30, 2024)
2025 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
Public works
Street lighting $ 285,000 $ 391,293 $ 394,980 $ (3,687) $ 319,762
Community event support 51,685 115,000 100,006 14,994 80,382
General sanitation 2,685,195 2,696,232 2,840,407 (144,175) 2,716,449
Storm water management 23,750 23,750 13,632 10,118 10,494
City hall maintenance 501,577 549,315 526,492 22,823 555,665
Cemeteries maintenance 549,852 555,870 552,241 3,629 583,093
Total public works 4,097,059 4,331,460 4,427,758 (96,298) 4,265,845
Community and economic development
Planning, zoning and economic development 1,080,571 1,127,326 1,172,214 (44,888) 804,954
Edison Landing subsidy 200,000 200,000 200,000 - 200,000
Total community and economic development 1,280,571 1,327,326 1,372,214 (44,888) 1,004,954
Culture and recreation
Parks maintenance 2,625,513 2,794,501 2,849,068 (54,567) 2,928,323
McGraft Park maintenance 140,248 131,703 115,084 16,619 154,160
General and inner city recreation programs 358,610 379,665 389,351 (9,686) 360,912
Forestry 29,000 32,210 28,305 3,905 25,254
Parking operations 471,492 452,980 522,261 (69,281) 397,388
Social district 45,000 45,000 12,326 32,674 37,581
Total culture and recreation 3,669,863 3,836,059 3,916,395 (80,336) 3,903,618
General administration
Insurance premiums 750,000 750,000 653,400 96,600 629,859
Other - - 60,462 (60,462) 43,339
Total other governmental functions 750,000 750,000 713,862 36,138 673,198
Debt service
Principal 1,204,961 1,204,961 1,204,962 (1) 1,163,802
Interest and fees 328,084 328,084 328,785 (701) 369,469
Bond issuance costs 380,000 - - - -
Total debt service 1,913,045 1,533,045 1,533,747 (702) 1,533,271
Capital outlay 894,000 1,063,218 926,102 137,116 683,697
Total expenditures 42,148,362 43,673,812 42,929,812 744,000 40,321,961
Excess of revenues over (under) expenditures (321,081) (313,154) 1,286,503 1,599,657 471,320
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE—CONTINUED
General Fund
For the year ended June 30, 2025
(with comparative actual amounts for the year ended June 30, 2024)
2025 2024
Budgeted Amounts Variance with
Original Final Actual Final Budget Actual
OTHER FINANCING SOURCES (USES)
Transfers in $ 73,017 $ - $ 34,663 $ 34,663 $ -
Transfers out (1,127,000) (1,467,000) (1,162,920) 304,080 (900,000)
Total other financing sources (uses) (1,053,983) (1,467,000) (1,128,257) 338,743 (900,000)
Net change in fund balance $(1,375,064) $ (1,780,154) 158,246 $ 1,938,400 (428,680)
Fund balance at beginning of year 9,589,228 10,017,908
Fund balance at end of year $ 9,747,474 $ 9,589,228
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, 2025
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues
Federal $ 748,530 $ 748,530 $ - $ (748,530)
State 5,468,300 5,191,589 6,457,237 1,265,648
Investment earnings - 24,548 33,133 8,585
Other - 531 1,087 556
Total revenues 6,216,830 5,965,198 6,491,457 526,259
EXPENDITURES
Current
Highways, streets, and bridges 6,515,710 4,688,483 4,983,303 (294,820)
Excess of revenues over (under) expenditures (298,880) 1,276,715 1,508,154 231,439
OTHER FINANCING SOURCES (USES)
Transfers in - - 13,020 13,020
Transfers out (2,200,000) (2,200,000) (2,200,000) -
Total other financing sources (uses) (2,200,000) (2,200,000) (2,186,980) 13,020
Net change in fund balance $ (2,498,880) $ (923,285) (678,826) $ 244,459
Fund balance at beginning of year 5,783,797
Fund balance at end of year $ 5,104,971
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
Trinity Health Arena Fund
For the year ended June 30, 2025
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 1,939,500 $ 2,063,823 $ 2,066,944 $ 3,121
Investment earnings 10,000 12,500 103,164 90,664
Other 14,000 2,300 2,261 (39)
Total revenues 1,963,500 2,078,623 2,172,369 93,746
EXPENDITURES
Current
Culture and recreation 2,370,333 2,584,483 2,691,047 (106,564)
Capital outlay - 242,015 244,251 (2,236)
Total expenditures 2,370,333 2,826,498 2,935,298 (108,800)
Excess of revenues over (under) expenditures (406,833) (747,875) (762,929) (15,054)
OTHER FINANCING SOURCES
Transfers in 420,000 760,000 760,000 -
Net change in fund balance $ 13,167 $ 12,125 (2,929) $ (15,054)
Fund balance at beginning of year 81,154
Fund balance at end of year $ 78,225
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)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
TOTAL PENSION LIABILITY
Service cost $ 451,176 $ 493,193 $ 510,157 $ 529,832 $ 615,293 $ 732,228 $ 806,565 $ 1,018,541 $ 1,130,408 $ 1,194,909
Interest 9,247,737 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
Differences between expected and actual experience 808,162 892,360 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 (130,244) 906,131 1,800,812 4,396,829 2,974,495 4,134,788 - - - 4,779,382
Benefit payments, including refunds of employee contributions (10,357,946) (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)
Other changes (86) 2,642 (1,577,082) - - - (229,967) (4,485,289) - -
Net change in total pension liability 18,799 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
Total pension liability at beginning of year 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
Total pension liability at end of year (a) $ 133,770,756 $ 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
PLAN FIDUCIARY NET POSITION
Contributions-employer $ 4,314,102 $ 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
Contributions-employee 236,534 185,454 291,821 304,680 374,806 491,814 848,562 687,391 563,898 566,045
Net investment income (loss) 6,376,438 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)
Benefit payments, including refunds or employee contributions (10,357,946) (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)
Administrative expense (187,502) (191,688) (180,011) (146,581) (173,766) (190,108) (173,509) (173,921) (175,718) (183,599)
- - - - - -
Net change in plan fiduciary net position 381,626 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)
Plan fiduciary net position at beginning of year 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
Plan fiduciary net position at end of year (b) $ 87,287,561 $ 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
City's net pension liability at end of year (a)-(b) $ 46,483,195 $ 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
Plan fiduciary net position as a percentage
of the total pension liability 65.25% 64.98% 63.43% 76.30% 73.88% 74.21% 73.75% 84.29% 77.93% 74.38%
Covered payroll $ 3,781,297 $ 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
City's net pension liability as a percentage of covered payroll 1229.29% 1143.66% 1150.78% 674.00% 608.20% 506.16% 450.68% 221.26% 282.59% 300.85%
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.
2024 Valuation - The investment rate of return assumption was reduced from 7.25 percent to 7.18 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)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contribution $ 4,975,764 $ 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
Contributions in relation to the actuarially
determined contribution 4,975,764 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
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ (922,393) $ (315,967) $ (166,074) $ (379,042) $ (206,832)
Covered payroll $ 3,939,673 $ 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
Contributions as percentage of covered
payroll 126.3% 84.2% 96.5% 80.8% 53.7% 45.5% 33.8% 25.7% 26.9% 19.2%
Notes to Schedule
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, Closed
Remaining amortization period 14 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 6.93 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-2021
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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 for years after 2024 and as of December 31 of each fiscal year for years prior to 2024)
2025 2024 2022 2021 2020 2019 2018 2017
TOTAL OPEB LIABILITY
Service cost $ 34,535 $ 75,231 $ 47,962 $ 142,556 $ 156,214 $ 165,306 $ 178,243 $ 165,423
Interest 1,594,785 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 299,009 (4,369,955) (433,044) (2,420,665) (325,146) (2,119,868) (992,432) -
Changes of assumptions 700,827 (508,402) 1,161,708 (2,771,809) (1,152,266) 6,288,823 2,349,210 -
Benefit payments, including refunds of employee contributions (2,277,224) (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 351,932 (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 23,886,733 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) $ 24,238,665 $ 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 $ 1,775,879 $ 2,862,264 $ 1,997,928 $ 1,767,843 $ 1,154,926 $ 1,001,447 $ 671,363 $ 736,039
Net investment income (loss) 2,588,321 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 (2,277,224) (3,222,631) (1,788,553) (1,710,064) (1,621,453) (1,983,928) (1,118,442) (1,064,376)
Administrative expense (62,949) (81,766) (46,001) (47,967) (42,375) (41,397) (53,927) (52,313)
Net change in plan fiduciary net position 2,024,027 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 26,465,846 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) $ 28,489,873 $ 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) $ (4,251,208) $ (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 117.54% 110.80% 79.54% 91.09% 69.96% 63.06% 67.28% 77.98%
Covered payroll Not Available 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 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 for years after 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
2025 valuation
Mortality improvement scale updated
Medical trend rates updated
Discount rate changed from 7.0 percent to 6.93 percent.
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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)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
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
Contributions in relation to the actuarially
determined contribution 2,089,141 1,624,141 1,865,895 650,383 1,206,464 1,233,505 1,260,887 687,642 606,506 639,428
Contribution deficiency (excess) $ (2,089,141) $ (299,727) $ (956,982) $ 693,627 $ 1,082,941 $ 881,683 $ 209,675 $ 268,890 $ - $ -
Covered payroll Not Available 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
Contributions as percentage of covered
payroll Not Available Not Available 27.8% 9.3% 15.4% 13.8% Not Available 8.5% 5.6% 5.9%
Notes to Schedule
Valuation Date:
Actuarially determined contribution rates are calculated as of June 30, 2024 rolled forward to June 30, 2025
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 7 years
Asset valuation method Equal to market value of assets
Inflation 2.5 percent
Salary increases 0.0 percent
Investment rate of return 6.93 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 for years after 2024 and as of December 31 of each fiscal year for years prior to 2024)
2025 2024 2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return, net of investment expense 9.89% 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.
DTE Assistance – to account for rebates received from DTE Energy for the purpose of maintaining heating
equipment owned by the City.
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, 2025
Other Other Permanent
Total Other Special Capital Fund -
Governmental Revenue Projects Cemetery
Funds Funds Funds Perpetual Care
ASSETS
Cash and investments $ 5,045,235 $ 1,056,109 $ 3,047,412 $ 941,714
Assets managed by others 1,828,161 - 27,171 1,800,990
Receivables
Accounts and loans (net of allowance for uncollectibles) 202,823 32,618 164,746 5,459
Leases 484,011 - 484,011 -
Due from other governmental units 1,426,344 243,613 1,182,731 -
Prepaid items 7,323 7,323 - -
Total assets $ 8,993,897 $ 1,339,663 $ 4,906,071 $ 2,748,163
LIABILITIES
Accounts payable $ 592,990 $ 45,725 $ 547,265 $ -
Accrued liabilities 19,318 10,362 8,956 -
Due to other governmental units 935 - 935 -
Due to other funds 456,505 - 456,505 -
Unearned revenues—unused Farmers Market tokens 158,867 158,867 - -
Total liabilities 1,228,615 214,954 1,013,661 -
DEFERRED INFLOWS OF RESOURCES
Related to leases 484,011 - 484,011 -
FUND BALANCES
Nonspendable
Prepaid items 7,323 7,323 - -
Perpetual care 1,816,049 - - 1,816,049
Restricted
Highways, streets and bridges 978,977 978,977 - -
Law enforcement 23,481 23,481 - -
Business improvement districts 22,420 22,420 - -
Perpetual care 932,114 - - 932,114
Other purposes 92,508 92,508 - -
Assigned for capital projects and public improvements 3,408,399 - 3,408,399 -
Total fund balances 7,281,271 1,124,709 3,408,399 2,748,163
Total liabilities, deferred inflows of
resources, and fund balances $ 8,993,897 $ 1,339,663 $ 4,906,071 $ 2,748,163
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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, 2025
Other Other Permanent
Total Other Special Capital Fund -
Governmental Revenue Projects Cemetery
Funds Funds Funds Perpetual Care
REVENUES
Intergovernmental revenues
Federal $ 2,878,326 $ - $ 2,878,326 $ -
State 1,951,352 1,618,991 332,361 -
Local 959,938 30,000 929,938 -
Charges for services 477,150 429,111 14,804 33,235
Investment earnings 30,844 2,180 22,875 5,789
Income from assets managed by others 209,779 - 3,749 206,030
Other 1,007,623 104,449 903,174 -
Total revenues 7,515,012 2,184,731 5,085,227 245,054
EXPENDITURES
Current
Public works 32,964 32,964 - -
Highways, streets, and bridges 3,435,457 3,435,457 - -
Culture and recreation 667,874 667,874 - -
Debt service
Principal 320,000 - 320,000 -
Interest and fees 596,645 - 596,645 -
Capital outlay 5,934,885 - 5,934,885 -
Total expenditures 10,987,825 4,136,295 6,851,530 -
Excess of revenues over (under) expenditures (3,472,813) (1,951,564) (1,766,303) 245,054
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 2,657,814 - 2,657,814 -
Transfers in 2,362,920 2,362,920 - -
Transfers out (60,000) - (60,000) -
Total other financing sources (uses) 4,960,734 2,362,920 2,597,814 -
Net change in fund balances 1,487,921 411,356 831,511 245,054
Fund balances at beginning of year 5,793,350 713,353 2,576,888 2,503,109
Fund balances at end of year $ 7,281,271 $ 1,124,709 $ 3,408,399 $ 2,748,163
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City of Muskegon
COMBINING BALANCE SHEET
Other Special Revenue Funds
June 30, 2025
Total Other Farmers
Special Revenue Local Market and Criminal Lakeshore Tree
Funds Street Kitchen 242 Forfeitures BID Replacement
ASSETS
Cash and investments $ 1,056,109 $ 776,384 $ 225,857 $ 23,481 $ 22,420 $ 7,967
Accounts receivable 32,618 2,383 30,235 - - -
Due from other governmental units 243,613 224,255 19,358 - - -
Prepaid items 7,323 7,323 - - - -
Total assets $ 1,339,663 $ 1,010,345 $ 275,450 $ 23,481 $ 22,420 $ 7,967
LIABILITIES
Accounts payable $ 45,725 $ 16,350 $ 29,375 $ - $ - $ -
Accrued liabilities 10,362 7,695 2,667 - - -
Unearned revenues—unused Farmers Market tokens 158,867 - 158,867 - - -
Total liabilities 214,954 24,045 190,909 - - -
FUND BALANCES
Nonspendable—prepaid items 7,323 7,323 - - - -
Restricted
Highways, streets, and bridges 978,977 978,977 - - - -
Law enforcement 23,481 - - 23,481 - -
Business improvement districts 22,420 - - - 22,420 -
Other purposes 92,508 - 84,541 - - 7,967
Total fund balances 1,124,709 986,300 84,541 23,481 22,420 7,967
Total liabilities and fund balances $ 1,339,663 $ 1,010,345 $ 275,450 $ 23,481 $ 22,420 $ 7,967
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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, 2025
Total Other Farmers
Special Revenue Local Market and Criminal Lakeshore Tree
Funds Street Kitchen 242 Forfeitures BID Replacement
REVENUES
Intergovernmental revenues
State $ 1,618,991 $ 1,618,991 $ - $ - $ - $ -
Local 30,000 - 30,000 - - -
Charges for services 429,111 11,383 417,728 - - -
Investment earnings 2,180 230 1,721 93 65 71
Other 104,449 112 62,429 - 29,908 12,000
Total revenues 2,184,731 1,630,716 511,878 93 29,973 12,071
EXPENDITURES
Current
Public works 32,964 - - - 32,964 -
Highways, streets, and bridges 3,435,457 3,435,457 - - - -
Culture and recreation 667,874 - 651,324 - - 16,550
Total expenditures 4,136,295 3,435,457 651,324 - 32,964 16,550
Excess of revenues over (under) expenditures (1,951,564) (1,804,741) (139,446) 93 (2,991) (4,479)
OTHER FINANCING SOURCES
Transfers in 2,362,920 2,292,000 67,000 - 3,920 -
Net change in fund balances 411,356 487,259 (72,446) 93 929 (4,479)
Fund balances at beginning of year 713,353 499,041 156,987 23,388 21,491 12,446
Fund balances at end of year $ 1,124,709 $ 986,300 $ 84,541 $ 23,481 $ 22,420 $ 7,967
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Other Special Revenue Funds
For the year ended June 30, 2025
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 $ 1,585,000 $ 1,618,991 $ 33,991 $ - $ - $ -
Local - - - - 30,000 30,000
Charges for services - 11,383 11,383 382,224 417,728 35,504
Investment earnings - 230 230 1,700 1,721 21
Other - 112 112 62,516 62,429 (87)
Total revenues 1,585,000 1,630,716 45,716 446,440 511,878 65,438
EXPENDITURES
Current
Highways, streets and bridges 3,433,478 3,435,457 (1,979) - - -
Culture and recreation - - - 644,172 651,324 (7,152)
Total expenditures 3,433,478 3,435,457 (1,979) 644,172 651,324 (7,152)
Excess of revenues over (under) expenditures (1,848,478) (1,804,741) 43,737 (197,732) (139,446) 58,286
OTHER FINANCING SOURCES
Transfers in 2,292,000 2,292,000 - 97,000 67,000 (30,000)
Net change in fund balances $ 443,522 487,259 $ 43,737 $ (100,732) (72,446) $ 28,286
Fund balances at beginning of year 499,041 156,987
Fund balances at end of year $ 986,300 $ 84,541
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE─CONTINUED
Other Special Revenue Funds
For the year ended June 30, 2025
Criminal Forfeitures Lakeshore 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 93 (7) 151 65 (86)
Other - - - 42,463 29,908 (12,555)
Total revenues 1,100 93 (1,007) 42,614 29,973 (12,641)
EXPENDITURES
Current
Public works - - - 43,279 32,964 10,315
Excess of revenues over (under) expenditures 1,100 93 (1,007) (665) (2,991) (2,326)
OTHER FINANCING SOURCES
Transfers in - - - 3,266 3,920 654
Net change in fund balances $ 1,100 93 $ (1,007) $ 2,601 929 $ (1,672)
Fund balances at beginning of year 23,388 21,491
Fund balances at end of year $ 23,481 $ 22,420
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City of Muskegon
BUDGETARY COMPARISON SCHEDULE─CONTINUED
Other Special Revenue Funds
For the year ended June 30, 2025
Tree Replacement
Final Variance with
Budget Actual Final Budget
REVENUES
Investment earnings $ 60 $ 71 $ 11
Other 12,000 12,000 -
Total revenues 12,060 12,071 11
EXPENDITURES
Current
Culture and recreation 13,660 16,550 (2,890)
Net change in fund balances $ (1,600) (4,479) $ (2,879)
Fund balances at beginning of year 12,446
Fund balances at end of year $ 7,967
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City of Muskegon
COMBINING BALANCE SHEET
Other Capital Projects Funds
June 30, 2025
Total Other EDC Community Convention
Capital Projects Public Michcon Revolving Development HOME Lead Senior Center Healthy DTE
Funds Improvement Remediation Loan Block Grant Rehabilitation Abatement Millage Construction Homes Assistance
ASSETS
Cash and investments $ 3,047,412 $ 1,009,228 $ 231,895 $ 1,160,951 $ - $ 380,874 $ - $ 147,458 $ 114,336 $ - $ 2,670
Assets managed by others 27,171 27,171 - - - - - - - - -
Receivables
Accounts and loans (net of
allowance for uncollectibles) 164,746 4,632 - 125,929 11,124 - - 23,061 - - -
Leases 484,011 - - 484,011 - - - - - - -
Due from other governmental units 1,182,731 300,000 - - 308,249 32,935 273,895 - - 267,652 -
Total assets $ 4,906,071 $ 1,341,031 $ 231,895 $ 1,770,891 $ 319,373 $ 413,809 $ 273,895 $ 170,519 $ 114,336 $ 267,652 $ 2,670
LIABILITIES
Accounts payable $ 547,265 $ 266,914 $ - $ - $ 76,808 $ 127 $ 112,780 $ 15,915 $ - $ 72,051 $ 2,670
Accrued liabilities 8,956 - - - 3,836 1,182 2,045 403 - 1,490 -
Due to other governmental units 935 751 - - 184 - - - - - -
Due to other funds 456,505 - - - 103,324 - 159,070 - - 194,111 -
Total liabilities 1,013,661 267,665 - - 184,152 1,309 273,895 16,318 - 267,652 2,670
DEFERRED INFLOWS OF RESOURCES
Related to leases 484,011 - - 484,011 - - - - - - -
FUND BALANCES
Assigned for capital projects
and public improvements 3,408,399 1,073,366 231,895 1,286,880 135,221 412,500 - 154,201 114,336 - -
Total liabilities, deferred inflows
of resources, and fund balances $ 4,906,071 $ 1,341,031 $ 231,895 $ 1,770,891 $ 319,373 $ 413,809 $ 273,895 $ 170,519 $ 114,336 $ 267,652 $ 2,670
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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, 2025
Total Other EDC Community Convention
Capital Projects Public Michcon Revolving Development HOME Lead Senior Center Healthy DTE
Funds Improvement Remediation Loan Block Grant Rehabilitation Abatement Millage Construction Homes Assistance
REVENUES
Intergovernmental revenues
Federal $ 2,878,326 $ 65,013 $ - $ - $ 1,086,723 $ 75,898 $ 1,109,871 $ - $ - $ 540,821 $ -
State 332,361 300,000 - - - - 32,361 - - - -
Local 929,938 13,293 - - - - - - 916,645 - -
Charges for services 14,804 10,049 - 495 - - - 4,260 - - -
Investment earnings 22,875 7,104 963 14,380 - - - - 428 - -
Income from assets managed by others 3,749 3,749 - - - - - - - - -
Other 903,174 588,176 - 66,651 2,248 - - 228,459 - - 17,640
Total revenues 5,085,227 987,384 963 81,526 1,088,971 75,898 1,142,232 232,719 917,073 540,821 17,640
EXPENDITURES
Debt service
Principal 320,000 - - - - - - - 320,000 - -
Interest and fees 596,645 - - - - - - - 596,645 - -
Capital outlay 5,934,885 2,789,737 - 42,202 1,105,548 146,536 1,142,232 139,024 500 551,466 17,640
Total expenditures 6,851,530 2,789,737 - 42,202 1,105,548 146,536 1,142,232 139,024 917,145 551,466 17,640
Excess of revenues over (under) expenditures (1,766,303) (1,802,353) 963 39,324 (16,577) (70,638) - 93,695 (72) (10,645) -
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 2,657,814 2,589,065 - - 29,809 28,295 - - - 10,645 -
Transfers out (60,000) - - - - - - (60,000) - - -
Total other financing sources (uses) 2,597,814 2,589,065 - - 29,809 28,295 - (60,000) - 10,645 -
Net change in fund balances 831,511 786,712 963 39,324 13,232 (42,343) - 33,695 (72) - -
Fund balances at beginning of year 2,576,888 286,654 230,932 1,247,556 121,989 454,843 - 120,506 114,408 - -
Fund balances at end of year $ 3,408,399 $ 1,073,366 $ 231,895 $ 1,286,880 $ 135,221 $ 412,500 $ - $ 154,201 $ 114,336 $ - $ -
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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, 2025
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
ASSETS
Current assets
Cash and investments $ 4,828,945 $ 171,619 $ 2,422,906 $ 1,198,580 $ 1,035,840
Accounts receivable 678,649 9,890 2,053 666,706 -
Inventories 12,738 - 12,738 - -
Prepaid items 489,726 3,333 87,954 388,680 9,759
Total current assets 6,010,058 184,842 2,525,651 2,253,966 1,045,599
Noncurrent assets
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 11,888,024 51,346 11,742,314 - 94,364
Less accumulated depreciation (10,512,127) (41,142) (8,581,427) - (1,889,558)
Net capital assets 3,410,827 10,204 3,160,887 - 239,736
Net other postemployment benefits asset 170,048 - 63,768 - 106,280
Total noncurrent assets 3,580,875 10,204 3,224,655 - 346,016
Total assets 9,590,933 195,046 5,750,306 2,253,966 1,391,615
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 238,351 - 89,382 - 148,969
Related to other postemployment benefits 8,832 - 3,312 - 5,520
Total deferred outflows of resources 247,183 - 92,694 - 154,489
Total assets and deferred outflows of resources 9,838,116 195,046 5,843,000 2,253,966 1,546,104
LIABILITIES
Current liabilities
Accounts payable 959,443 6,457 49,445 845,649 57,892
Accrued liabilities 39,440 9,655 9,382 892 19,511
Due to other governmental units 7,600 7,600 - - -
Total current liabilities 1,006,483 23,712 58,827 846,541 77,403
Noncurrent liabilities
Net pension liability 1,859,328 - 697,248 - 1,162,080
Total liabilities 2,865,811 23,712 756,075 846,541 1,239,483
NET POSITION
Net investment in capital assets 3,410,827 10,204 3,160,887 - 239,736
Restricted for other postemployment benefits 170,048 - 63,768 - 106,280
Unrestricted 3,391,430 161,130 1,862,270 1,407,425 (39,395)
Total net position $ 6,972,305 $ 171,334 $ 5,086,925 $ 1,407,425 $ 306,621
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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, 2025
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
OPERATING REVENUES
Charges for services $ 11,289,536 $ 957,459 $ 3,948,810 $ 4,081,265 $ 2,302,002
Other 2,984,061 49,840 70,107 2,864,114 -
Total operating revenues 14,273,597 1,007,299 4,018,917 6,945,379 2,302,002
OPERATING EXPENSES
Administration 1,374,855 214,479 277,289 13,324 869,763
Insurance premiums and claims 7,106,744 - - 7,106,744 -
Other operations 4,639,904 780,182 2,298,839 90,389 1,470,494
Depreciation 666,816 2,499 641,952 - 22,365
Total operating expenses 13,788,319 997,160 3,218,080 7,210,457 2,362,622
Operating income (loss) 485,278 10,139 800,837 (265,078) (60,620)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 23,099 697 11,985 5,018 5,399
Gain (loss) on sale of capital assets 16,775 - 16,775 - -
Total nonoperating revenues (expenses) 39,874 697 28,760 5,018 5,399
Change in net position 525,152 10,836 829,597 (260,060) (55,221)
Net position at beginning of year, as previously reported 6,202,165 104,104 4,164,454 1,659,765 273,842
Adjustments to beginning net position 244,988 56,394 92,874 7,720 88,000
Net position at beginning of year, as restated 6,447,153 160,498 4,257,328 1,667,485 361,842
Net position at end of year $ 6,972,305 $ 171,334 $ 5,086,925 $ 1,407,425 $ 306,621
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City of Muskegon
COMBINING STATEMENT OF CASH FLOWS
Internal Service Funds
For the year ended June 30, 2025
Total Internal Engineering General Public Service
Service Funds Services Equipment Insurance Building
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 127,269 $ 50,217 $ 77,052 $ - $ -
Receipts from interfund services provided 11,289,536 957,459 3,948,810 4,081,265 2,302,002
Other receipts 2,479,992 - - 2,479,992 -
Payments to suppliers (9,138,727) (294,459) (1,382,102) (6,786,344) (675,822)
Payments to employees (2,788,508) (549,499) (675,086) (65,089) (1,498,834)
Payments for interfund services used (931,623) (139,918) (598,478) - (193,227)
Net cash provided by (used for) operating activities 1,037,939 23,800 1,370,196 (290,176) (65,881)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Collections on advances to component units 102,548 - 51,274 51,274 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (730,416) - (730,416) - -
Proceeds from sale of capital assets 16,775 - 16,775 - -
Net cash provided by (used for) capital and related financing activities (713,641) - (713,641) - -
CASH FLOW FROM INVESTING ACTIVITIES
Investment earnings 23,099 697 11,985 5,018 5,399
Net increase (decrease) in cash and investments 449,945 24,497 719,814 (233,884) (60,482)
Cash and investments at beginning of year 4,379,000 147,122 1,703,092 1,432,464 1,096,322
Cash and investments at end of year $ 4,828,945 $ 171,619 $ 2,422,906 $ 1,198,580 $ 1,035,840
Reconciliation of operating income (loss) to net cash provided by (used for)
operating activities
Operating income (loss) $ 485,278 $ 10,139 $ 800,837 $ (265,078) $ (60,620)
Adjustments to reconcile operating income (loss) to net cash provided by
(used for) operating activities
Depreciation expense 666,816 2,499 641,952 - 22,365
Change in assets and liabilities
Receivables (376,800) 377 6,945 (384,122) -
Inventories (7,311) - (7,311) - -
Prepaid items (149,185) 172 (4,567) (144,277) (513)
Accounts payable 483,171 8,790 (41,394) 503,230 12,545
Accrued liabilities (64,030) 1,823 (26,266) 71 (39,658)
Net cash provided by (used for) operating activities $ 1,037,939 $ 23,800 $ 1,370,196 $ (290,176) $ (65,881)
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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, 2025
Total Current Rehab Loan
Custodial Funds Collector Tax Escrow
ASSETS
Cash and investments $ 1,066,476 $ 1,039,257 $ 26,838 $ 381
Accounts receivable 167,308 167,308 - -
Total assets 1,233,784 1,206,565 26,838 381
LIABILITIES
Accounts payable 5,310 4,929 - 381
Due to other governmental units 1,004,618 977,780 26,838 -
Deposits held for others 223,856 223,856 - -
Total liabilities 1,233,784 1,206,565 26,838 381
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, 2025
Total Current Rehab Loan
Custodial Funds Collector Tax Escrow
ADDITIONS
Tax collections for other governments $ 30,044,200 $ 386,589 $ 29,657,611 $ -
Other collections for third parties 10,647,046 10,647,046 - -
Total additions 40,691,246 11,033,635 29,657,611 -
DEDUCTIONS
Payment of taxes to other governments 30,044,200 386,589 29,657,611 -
Other payments to third parties 10,647,046 10,647,046 - -
Total deductions 40,691,246 11,033,635 29,657,611 -
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 nine 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 VIII – Adelaide Pointe
• Area IX – Highpoint Flats
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City of Muskegon
COMBINING BALANCE SHEET
Discretely Presented Component Units
June 30, 2025
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 $ 854,405 $ 236,629 $ 518,734 $ 38,922 $ 60,120 $ -
Accounts receivable 17,912 - 17,912 - - -
Total assets $ 872,317 $ 236,629 $ 536,646 $ 38,922 $ 60,120 $ -
LIABILITIES
Accounts payable $ 213,972 $ - $ 80,123 $ - $ - $ 133,849
Accrued liabilities 1,493 - 1,493 - - -
Due to other governmental units 67 - 67 - - -
Advances from primary government 117,833 - - - - 117,833
Total liabilities 333,365 - 81,683 - - 251,682
FUND BALANCES (DEFICITS)
Unassigned 538,952 236,629 454,963 38,922 60,120 (251,682)
Total liabilities and fund
balances (deficits) $ 872,317 $ 236,629 $ 536,646 $ 38,922 $ 60,120 $ -
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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, 2025
Total fund balances (deficits)—governmental funds $ 538,952
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 (3,726,321) 471,937
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 (1,400)
Bonds and notes payable (285,000) (286,400)
Net position of governmental activities $ 724,489
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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, 2025
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 $ 2,097,981 $ 250,064 $ 516,659 $ 48,776 $ 36,584 $ 1,245,898
Intergovernmental revenues
State 50,591 3,136 12,000 9,497 - 25,958
Local 200,600 200,000 600 - - -
Investment earnings 3,928 357 2,071 136 160 1,204
Other 122,382 - 122,382 - - -
Total revenues 2,475,482 453,557 653,712 58,409 36,744 1,273,060
EXPENDITURES
Current
Community and economic development 1,683,859 - 659,735 50,000 6,374 967,750
Debt service
Principal 275,000 275,000 - - - -
Interest and fees 16,435 12,676 - - - 3,759
Total expenditures 1,975,294 287,676 659,735 50,000 6,374 971,509
Net change in fund balances (deficits) 500,188 165,881 (6,023) 8,409 30,370 301,551
Fund balances (deficits) at beginning of year 38,764 70,748 460,986 30,513 29,750 (553,233)
Fund balances (deficits) at end of year $ 538,952 $ 236,629 $ 454,963 $ 38,922 $ 60,120 $ (251,682)
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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, 2025
Net change in fund balances (deficits)—total governmental funds $ 500,188
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 275,000
Changes in accrual of interest and amortization of premiums and discounts
Change in accrued interest payable $ 1,400
Amortization of premiums 2,824 4,224
Change in net position of governmental activities $ 606,764
126
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SCHEDULE OF INDEBTEDNESS
127
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2025
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2024 6/30/2025 Payable
Business-Type Activities Bonds and Loans Payable:
Drinking Water State Revolving Fund 3/2/2004 $ 13,900,000 2.13% 10/01/24 $ 825,000 $ - $ -
2.13% 10/01/25 840,000 840,000 8,925
Type of debt: state loan 1,665,000 840,000 8,925
Revenue Pledged: water system net revenues
Drinking Water State Revolving Fund* 8/30/2019 $ 1,600,000 2.00% 10/01/24 70,000 - -
2.00% 10/01/25 70,000 70,000 26,500
Type of debt: state loan 2.00% 10/01/26 75,000 75,000 25,100
Revenue Pledged: water system net revenues 2.00% 10/01/27 75,000 75,000 23,600
Forgiveness: 20% 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
1,395,000 1,325,000 236,100
Sanitary Sewer State Revolving Fund* 8/30/2019 $ 2,875,000 2.00% 10/01/24 125,000 - -
2.00% 10/01/25 130,000 130,000 46,400
Type of debt: state loan 2.00% 10/01/26 130,000 130,000 43,800
Revenue Pledged: sanitary sewer system net revenues 2.00% 10/01/27 135,000 135,000 41,150
Forgiveness: 75% 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
2,510,000 2,385,000 401,450
Drinking Water State Revolving Fund* 9/30/2020 $ 3,844,750 2.00% 04/01/25 150,000 - -
2.00% 04/01/26 155,000 155,000 56,908
Type of debt: state loan 2.00% 04/01/27 155,000 155,000 53,808
Revenue Pledged: water system net revenues 2.00% 04/01/28 160,000 160,000 50,708
Forgiveness: 9% 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
2,995,390 2,845,390 505,428
128
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2025
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2024 6/30/2025 Payable
Business-Type Activities Bonds and Loans Payable—Continued:
Sanitary Sewer State Revolving Fund* 9/30/2020 $ 3,772,000 2.00% 04/01/25 $ 162,000 $ - $ -
2.00% 04/01/26 167,000 167,000 61,570
Type of debt: state loan 2.00% 04/01/27 167,000 167,000 58,230
Revenue Pledged: sanitary sewer system net revenues 2.00% 04/01/28 172,000 172,000 54,890
Forgiveness: 20% 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
3,240,498 3,078,498 549,480
Drinking Water State Revolving Fund* 9/30/2022 $ 240,000 1.875% 10/01/26 10,000 10,000 4,500
1.875% 10/01/27 10,000 10,000 4,313
Type of debt: state loan 1.875% 10/01/28 10,000 10,000 4,125
Revenue Pledged: water system net revenues 1.875% 10/01/29 10,000 10,000 3,938
Forgiveness: 92.5% 1.875% 10/01/30 10,000 10,000 3,750
1.875% 10/01/31 5,032 10,000 3,563
1.875% 10/01/32 - 10,000 3,375
1.875% 10/01/33 - 10,000 3,188
1.875% 10/01/34 - 10,000 3,000
1.875% 10/01/35 - 10,000 2,813
1.875% 10/01/36 - 10,000 2,625
1.875% 10/01/37 - 10,000 2,438
1.875% 10/01/38 - 15,000 2,250
1.875% 10/01/39 - 15,000 1,969
1.875% 10/01/40 - 15,000 1,688
1.875% 10/01/41 - 15,000 1,406
1.875% 10/01/42 - 15,000 1,125
1.875% 10/01/43 - 15,000 844
1.875% 10/01/44 - 15,000 563
1.875% 10/01/45 - 15,000 281
55,032 240,000 51,754
Sanitary Sewer State Revolving Fund* 9/30/2022 $ 2,646,022 1.875% 10/01/25 118,000 110,422 46,567
1.875% 10/01/26 120,000 110,422 44,295
Type of debt: state loan 1.875% 10/01/27 120,000 115,422 42,178
Revenue Pledged: sanitary sewer system net revenues 1.875% 10/01/28 125,000 115,422 40,013
Forgiveness: 20% 1.875% 10/01/29 125,000 120,422 37,802
1.875% 10/01/30 130,000 120,422 35,545
1.875% 10/01/31 130,000 125,422 33,240
1.875% 10/01/32 135,000 125,422 30,888
1.875% 10/01/33 135,000 130,422 28,489
1.875% 10/01/34 140,000 130,422 26,044
1.875% 10/01/35 140,000 135,423 23,551
1.875% 10/01/36 145,000 140,423 20,966
1.875% 10/01/37 150,000 140,423 18,333
1.875% 10/01/38 150,000 145,423 15,653
1.875% 10/01/39 155,000 145,423 12,926
1.875% 10/01/40 155,000 150,423 10,152
1.875% 10/01/41 160,000 150,423 7,332
1.875% 10/01/42 152,781 155,423 4,465
1.875% 10/01/43 - 160,418 1,504
2,485,781 2,528,022 479,943
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2025
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2024 6/30/2025 Payable
Business-Type Activities Bonds and Loans Payable—Continued:
Drinking Water State Revolving Fund* 9/20/2022 $ 1,037,748 1.875% 04/01/25 $ 48,130 $ - $ -
1.875% 04/01/26 50,000 44,700 18,076
Type of debt: state loan 1.875% 04/01/27 50,000 44,700 17,299
Revenue Pledged: water system net revenues 1.875% 04/01/28 50,000 44,700 16,461
Forgiveness: 49% 1.875% 04/01/29 50,000 44,700 15,622
1.875% 04/01/30 50,000 44,700 14,783
1.875% 04/01/31 50,000 44,700 13,945
1.875% 04/01/32 55,000 49,700 13,060
1.875% 04/01/33 55,000 49,700 12,128
1.875% 04/01/34 55,000 49,700 11,197
1.875% 04/01/35 60,000 54,700 10,219
1.875% 04/01/36 60,000 54,700 9,193
1.875% 04/01/37 60,000 54,700 8,167
1.875% 04/01/38 60,000 54,700 7,141
1.875% 04/01/39 60,000 54,700 6,115
1.875% 04/01/40 65,000 59,700 5,043
1.875% 04/01/41 28,307 59,700 3,924
1.875% 04/01/42 - 59,700 2,804
1.875% 04/01/43 - 59,700 1,685
1.875% 04/01/44 - 60,018 563
906,437 989,618 187,425
Sanitary Sewer State Revolving Fund* 9/8/2023 $ 1,551,343 1.875% 04/01/25 80,000 - -
1.875% 04/01/26 85,000 85,000 25,994
Type of debt: state loan 1.875% 04/01/27 85,000 85,000 24,400
Revenue Pledged: sanitary sewer system net revenues 1.875% 04/01/28 85,000 85,000 22,806
Forgiveness: 50% 1.875% 04/01/29 25,338 90,000 21,119
1.875% 04/01/30 - 90,000 19,431
1.875% 04/01/31 - 90,000 17,744
1.875% 04/01/32 - 95,000 15,963
1.875% 04/01/33 - 95,000 14,181
1.875% 04/01/34 - 95,000 12,400
1.875% 04/01/35 - 100,000 10,525
1.875% 04/01/36 - 100,000 8,650
1.875% 04/01/37 - 100,000 6,775
1.875% 04/01/38 - 105,000 4,806
1.875% 04/01/39 - 105,000 2,838
1.875% 04/01/40 - 105,000 869
1.875% 04/01/41 - 46,343 -
360,338 1,471,343 208,501
Drinking Water State Revolving Fund* 9/8/2023 $ 886,405 1.875% 04/01/26 - - 16,620
1.875% 04/01/27 - 115,532 14,454
Type of debt: state loan 1.875% 04/01/28 - 120,000 12,204
Revenue Pledged: water system net revenues 1.875% 04/01/29 - 125,000 9,860
Forgiveness: 49% 1.875% 04/01/30 - 125,000 7,516
1.875% 04/01/31 - 130,000 5,079
1.875% 04/01/32 - 130,000 2,641
1.875% 04/01/33 - 135,000 110
1.875% 04/01/34 - 5,873 -
- 886,405 68,484
Drinking Water State Revolving Fund* 8/28/2024 $ 810,000 1.875% 04/01/26 - - 6,314
1.875% 04/01/27 - - 6,314
Type of debt: state loan 1.875% 04/01/28 - 200,004 2,314
Revenue Pledged: water system net revenues 1.875% 04/01/29 - 115,675 -
Forgiveness: 49% 1.875% 04/01/30 - - -
- 315,679 14,942
TOTAL BUSINESS TYPE ACTIVITIES BONDS AND LOAN PAYABLE: $ 15,613,476 $ 16,904,955 $ 2,712,432
*If certain conditions are met, a portion of the principal amount on these debts may be forgiven.
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2025
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2024 6/30/2025 Payable
Governmental Activities Bonds and Loan Payable:
Capital Improvement Refunding Bonds of 2016 3/8/2016 $ 4,535,000 3.00% 10/01/24 $ 320,000 $ - $ -
($84,903 unamortized premium) 4.00% 10/01/25 325,000 325,000 97,100
4.00% 10/01/26 325,000 325,000 84,100
Type of debt: limited general obligation bonds 4.00% 10/01/27 325,000 325,000 71,100
Revenue pledged: general revenues 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
2,910,000 2,590,000 413,200
Capital Improvement Bonds of 2019 10/9/2019 $ 19,420,000 1.88% 10/01/24 320,000 - -
Convention Center 1.93% 10/01/25 340,000 340,000 589,875
($106,450 unamortized discount) 2.00% 10/01/26 360,000 360,000 582,273
2.10% 10/01/27 380,000 380,000 573,795
Type of debt: limited general obligation bonds 2.24% 10/01/28 405,000 405,000 564,429
Revenue Pledged: excise tax on hotel rooms levied by the 2.34% 10/01/29 430,000 430,000 553,918
County of Muskegon pursuant to Act 263 2.43% 10/01/30 455,000 455,000 542,412
2.60% 10/01/31 480,000 480,000 530,066
2.60% 10/01/32 510,000 510,000 516,544
2.68% 10/01/33 540,000 540,000 501,815
2.78% 10/01/34 570,000 570,000 485,822
2.83% 10/01/35 605,000 605,000 467,399
2.93% 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
3.30% 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
3.48% 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
18,490,000 18,170,000 9,548,185
Capital Improvement Bonds of 2020 11/12/2020 $ 4,325,000 4.00% 10/01/24 370,000 - -
Series 2020A 4.00% 10/01/25 385,000 385,000 127,200
($416,824 unamortized premium) 4.00% 10/01/26 405,000 405,000 109,375
5.00% 10/01/27 420,000 420,000 88,750
Type of debt: limited general obligation bonds 5.00% 10/01/28 445,000 445,000 67,125
Revenue pledged: general revenues 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
3,310,000 2,940,000 499,825
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City of Muskegon
SCHEDULE OF INDEBTEDNESS
June 30, 2025
Annual
Date Amount Interest Date of Interest
of Issue of Issue Rate Maturity 6/30/2024 6/30/2025 Payable
Governmental Activities Bonds and Loan Payable—Continued:
Capital Improvement Bonds of 2020 11/12/2020 $ 2,055,000 0.68% 10/01/24 $ 90,000 $ - $ -
Series 2020B 1.35% 10/01/25 90,000 90,000 42,823
1.35% 10/01/26 90,000 90,000 41,608
Type of debt: limited general obligation bonds 1.35% 10/01/27 95,000 95,000 40,050
Revenue pledged: general revenues 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
1,795,000 1,705,000 415,801
Installment Purchase Agreement of 2021 9/15/2021 $ 1,370,873 1.78% 09/25/24 277,860 - -
(fire tower ladder truck) 1.78% 09/25/25 282,784 282,784 3,956
1.78% 09/25/26 71,476 71,476 210
Type of debt: installment purchase agreements 632,120 354,260 4,166
Revenue pledged: general revenues
Installment Purchase Agreement of 2023 3/20/2023 $ 761,603 4.40% 04/20/25 147,101 - -
(fire pumper truck) 4.40% 04/20/26 153,706 153,706 16,262
4.40% 04/20/27 160,607 160,607 9,361
Type of debt: installment purchase agreements 4.40% 04/20/28 125,169 125,168 2,306
Revenue pledged: general revenues 586,583 439,481 27,929
TOTAL GOVERNMENTAL ACTIVITIES BONDS AND LOANS PAYABLE $ 27,723,703 $ 26,198,741 $ 10,909,106
TOTAL PRIMARY GOVERNMENT BONDS AND LOANS PAYABLE $ 43,337,179 $ 43,103,696 $ 13,621,538
Discretely Presented Component Unit Bonds and Loans Payable:
Local Development Finance Authority 3/20/2012 $ 4,100,000 3.00% 11/01/24 $ 275,000 $ - $ -
Smartzone Refunding Bonds 3.00% 11/01/25 285,000 285,000 4,275
Type of debt: limited general obligation bonds 560,000 285,000 4,275
Revenue pledged: LDFA tax increments, general revenues
TOTAL DISCRETELY PRESENTED COMPONENT UNIT BONDS AND LOANS PAYABLE $ 560,000 $ 285,000 $ 4,275
TOTAL REPORTING ENTITY BONDS AND LOANS PAYABLE $ 43,897,179 $ 43,388,696 $ 13,625,813
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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. 134
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting
the City’s ability to generate its property and sales taxes. 139
Debt Capacity
These schedules present information to help the reader assess the affordability of
the City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future. 146
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place
and to help make comparisons over time and with other governments. 150
Operating Information
These schedules contain information about the City’s operations and resources to help
the reader understand how the City’s financial information relates to the services the
City provides and the activities it performs. 152
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
133
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City of Muskegon
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2016 2017 2018 (a) 2019 2020 2021 2022 2023 2024 2025
Governmental Activities
Net Investment in Capital Assets $ 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 $ 80,015,524
Restricted 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 12,124,112
Unrestricted (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) (22,275,861)
Total Governmental Net Position $ 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 $ 69,863,775
Business-type Activities
Net Investment in Capital Assets $ 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 $ 62,661,899
Restricted 599,500 599,500 599,500 599,500 599,500 822,000 822,000 822,000 1,013,943 1,127,928
Unrestricted 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 9,373,831
Total Business-type Activities Net Position $ 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 $ 73,163,658
Primary Government
Net Investment in Capital Assets $ 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 $ 142,677,423
Restricted 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 13,252,040
Unrestricted 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) (12,902,030)
Total Primary Government Net Position $ 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 $ 143,027,433
(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 is derived from the
annual comprehensive financial reports for the relevant year.
134
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City of Muskegon
CHANGES IN NET POSITION
Last Ten Fiscal Years
2016 2017 2018 (a) 2019 2020 2021 2022 2023 2024 2025
EXPENSES
Governmental Activities
Public representation $ 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 $ 2,229,559
Administrative services 663,077 679,139 507,275 800,887 962,981 826,344 913,923 1,094,528 1,036,809 1,058,911
Financial services 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 7,277,240
Public safety 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 19,533,090
Public works 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 4,521,567
Highways, streets and bridges 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 8,014,545
Community and economic development 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 10,279,121
Culture and recreation 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 9,367,878
General administration 326,452 301,287 376,112 302,582 389,863 404,303 511,323 977,506 701,800 741,633
Interest on long-term debt 248,223 172,591 165,023 151,304 732,065 1,112,166 881,204 866,450 860,809 822,630
Total Governmental Activities Expenses 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 63,846,174
Business-type Activities
Water 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 10,974,288
Sewer 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 9,826,124
Marina and launch ramp 327,832 336,912 377,614 430,431 529,007 515,025 461,504 490,079 530,454 529,290
Total Business-type Activities Expenses 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 21,329,702
Total Primary Government Expenses 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 85,175,876
PROGRAM REVENUES
Governmental Activities
Charges for Services
Public representation 226,559 228,767 232,736 250,931 253,511 280,395 324,314 367,723 408,586 616,319
Administrative services 474,737 572,739 539,178 604,290 538,791 504,281 715,421 697,070 804,969 879,387
Financial services 925,474 895,924 903,322 921,748 913,968 988,501 1,085,220 1,129,918 1,122,315 1,283,524
Public safety 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 3,436,080
Public works 379,877 646,876 743,110 691,312 835,149 828,098 854,793 1,361,232 1,311,829 1,196,343
Highways, streets and bridges 234,861 256,190 188,248 191,883 193,267 187,478 522,779 243,319 278,573 280,351
Community and economic development 444,632 706,195 348,933 786,120 769,860 912,247 498,766 609,408 349,316 365,298
Culture and recreation 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 4,008,264
General administration 52,512 37,892 38,549 40,400 59,537 65,592 76,182 89,072 167,316 127,021
Operating grants and contributions 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 12,017,238
Capital grants and contributions 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 8,201,626
Total Governmental Program Revenues 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 32,411,451
Business-type Activities
Water 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 11,435,975
Sewer 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 10,548,439
Marina and launch ramp 287,547 278,753 325,917 298,312 74,659 178,706 292,416 329,518 316,603 329,803
Operating grants and contributions - 2,436 42,531 510,533 94,462 - 103,208 427,075 129,989 105,686
Capital grants and contributions 765,363 784,969 - - - 10,354,544 - 2,289,819 5,516,827 3,055,637
Total Business-type program revenues 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 25,475,540
Total Primary Government program revenues 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 57,886,991
NET (EXPENSE) REVENUE
Governmental Activities (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) (31,434,723)
Business-type Activities (904,650) (303,486) 469,478 (448,419) (1,985,873) 11,371,648 1,721,362 3,677,296 6,837,887 4,145,838
Total Primary Government net expense (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) (27,288,885)
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City of Muskegon
CHANGES IN NET POSITION
Last Ten Fiscal Years
2016 2017 2018 (a) 2019 2020 2021 2022 2023 2024 2025
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental Activities
Property taxes $ 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 $ 11,767,911
Income taxes 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 13,464,269
Franchise fees 372,117 378,955 368,495 380,343 361,405 374,219 369,420 349,044 312,085 266,262
Grants and contributions not restricted for specific programs 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 6,256,126
Unrestricted investment earnings 189,408 106,653 92,771 546,533 568,408 229,177 (644,067) 765,542 1,680,189 1,762,158
Miscellaneous 626,014 512,738 545,536 550,381 577,677 370,268 918,179 688,390 738,714 736,819
Gain on sale of capital asset 99,031 844,062 712,415 1,333,414 317 2,641,064 1,122,888 2,724,195 3,281,710 2,627,712
Transfers - - - - - (35,000) 35,000 (1,341,313) (729,901) (300,000)
Total Governmental Program Revenues 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 36,581,257
Business-type Activities
Unrestricted investment earnings 25,688 25,277 28,550 24,063 9,181 9,918 23,856 27,463 40,340 122,604
Transfers - - - - - 35,000 (35,000) 1,341,313 729,901 300,000
Total Business-type program revenues 25,688 25,277 28,550 24,063 9,181 44,918 (11,144) 1,368,776 770,241 422,604
Total Primary Government program revenues 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 37,003,861
CHANGE IN NET POSITION
Governmental Activities (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 5,146,534
Business-type Activities (878,962) (278,209) 498,028 (424,356) (1,976,692) 11,416,566 1,710,218 5,046,072 7,608,128 4,568,442
Total Primary Government $ (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 $ 9,714,976
(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 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Nonspendable $ 232,332 $ 209,353 $ 222,458 $ 241,684 $ 280,986 $ 269,920 $ 881,961 $ 873,226 $ 701,808 $ 313,616
Restricted - - - - - 66,965 8,701 201,500 174,825 171,245
Committed - - - - - 39,000 189,037 295,113 413,107 382,132
Assigned 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 1,800,000
Unassigned 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 7,080,481
Total general fund $ 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 $ 9,747,474
All other governmental funds
Nonspendable $ 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 $ 1,859,106
Restricted 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 7,196,962
Assigned 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 3,409,946
Unassigned - - - - (1,601,331) (2,919,404) - - - -
Total all other governmental funds $ 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 $ 12,466,014
SOURCE: The information in these schedules 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes $ 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 $ 24,311,838
Intergovernmental 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 26,064,079
Charges for services 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 8,367,517
Other 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 7,854,446
Total revenues 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 66,597,880
Expenditures
Public representation 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 2,236,695
Administrative services 577,454 624,284 537,913 739,301 844,270 783,403 945,841 1,079,807 1,077,435 1,138,987
Financial services 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 7,338,382
Public safety 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 20,468,492
Public works 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 4,460,722
Highways, streets and bridges 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 8,418,760
Community and economic development 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 6,484,892
Culture and recreation 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 8,115,183
Other governmental functions 305,807 280,416 355,241 281,711 371,461 380,232 485,024 950,789 673,198 713,862
Debt service
Principal 428,199 283,563 288,934 294,313 818,285 2,813,804 1,342,462 1,272,509 1,463,802 1,524,962
Interest 257,516 211,242 197,723 189,905 543,740 943,216 1,011,004 985,750 972,209 925,430
Issuance costs 97,578 - - - 70,525 140,750 1,000 - - -
Capital outlay 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 6,164,915
Total expenditure 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 67,991,282
Excess of revenues over (under) expenditures (1,397,999) 497,687 992,021 (2,696,819) (17,167,117) (14,680,012) 1,461,979 236,961 (2,972,979) (1,393,402)
Other financing sources (uses)
Transfers in 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 3,170,603
Transfers out (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) (3,470,603)
Long-term debt issued 97,578 - - - 21,691,740 7,152,424 1,370,873 761,603 - -
Proceeds from sale of capital assets 190,957 1,529,325 741,803 1,541,041 491,924 2,908,552 1,204,675 2,976,733 3,187,917 2,657,814
Total other financing sources (uses) 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 2,357,814
Net change in fund balances $ (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) $ 964,412
Debt service as a percentage of noncapital
expenditures 2.09% 1.52% 1.36% 1.37% 3.40% 9.06% 4.60% 3.91% 4.20% 3.96%
SOURCE: The information in these schedules 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
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%
2025 11,287,537 16.9% 13,024,301 19.6% 26,064,079 39.1% 8,367,517 12.6% 2,971,755 4.5% 736,879 1.1% 2,075,395 3.1% 2,070,417 3.1% 66,597,880 10.1%
SOURCE: The information in these schedules 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 Total Taxable Value
Real Personal Total Real Personal Real Total Taxable City As a Percent
Year Residential Agriculture Commercial Industrial Property Property Ad Valorem Property Property Property IFT and CFT Valuation Millage Actual
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%
2024 513,957,286 - 176,568,760 58,982,743 749,508,799 74,263,800 823,772,589 17,986,604 - - 17,665,495 841,388,084 12.5570 65.13%
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
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
2024 888,299,800 - 238,503,600 69,983,000 1,196,796,400 74,241,500 1,271,037,900 20,816,900 - - 20,816,700 1,291,854,600 2,583,709,200
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
6/30/2025 6/30/2016
Percent of Percent of
Taxable Total Taxable Taxable Total Taxable
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Consumers Energy $ 23,624,041 1 2.8% $ 32,085,934 1 5.6%
DTE Gas Company 15,718,842 2 1.9% 6,989,800 2 1.2%
James Street Capital Holdings 11,984,631 3 1.4% 6,240,000 4 1.1%
Muskegon SC Holdings LLC 9,451,134 4 1.1% 6,550,900 3 1.1%
Michigan Electrical Transmission Co 5,526,900 5 0.7% 4,790,700 5 0.8%
West Urban Properties 4,636,073 6 0.6% 4,595,700 6 0.8%
B & S Holding LLC 4,511,100 7 0.5% 4,260,600 7 0.7%
Glen Oaks Apartments 4,032,170 8 0.5% 3,942,791 8 0.7%
Verplank Port Facility LLC 3,919,700 9 0.5% 3,906,313 9 0.7%
OHAT-1 LLC/OHAT-2 LLC 3,417,795 10 0.4% 3,665,660 10 0.6%
Total - 10 Largest 86,822,386 10.32% 77,028,398 13.36%
Total - All Other 754,565,698 89.68% 499,469,809 86.64%
$ 841,388,084 100.0% $ 576,498,207 100.0%
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
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
2024 9.6127 0.0605 2.8838 12.5570 2.3097 0.2500
Overlapping - County-Wide Rates
Muskegon Intermediate Special Vocational Community MAISD Community
Year County School Education Education College Gen Ed College Debt
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
2024 6.7319 0.4480 2.2408 0.9745 2.1515 0.9749 0.2250
Overlapping - School District Grand Total
State Non-
Year Operating Debt Total Education Homestead Homestead
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
2024 18.0000 8.4519 26.4519 6.0000 43.3152 61.3152
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
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%
2024 13,502,220 12,289,838 91.0% 1,110,449 13,400,287 99.2% - 67,432 32,935 0.74%
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 2016 - 2025
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
INCOME TAX $
$4,000,000
$2,000,000
$-
2015 - 2016 2016 - 2017 2017 - 2018 2018 - 2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Series5 $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 $4,585,742
Series6 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 5,604,796
Series7 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 2,833,762
Series8 $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 $13,024,301
FISCAL YEAR
NUMBER OF RETURNS 2016 - 2025
20,000
18,000
1,750 1,750 1,650
1,650 1,650
16,000 1,650
1,650
14,000 1,650 1,650
1,650
12,000
9,206
10,713 10,578 10,278 10,256 9,505
10,000 Series3
9,426
8,524 8,343
8,301 Series2
RETURNS
8,000
Series1
6,000
4,000
6,985
5,337 5,464 5,352 5,493 5,611
4,852 4,302 4,732 4,868
2,000
-
2015 - 2016 2016 - 2017 2017- 2018 2018 - 2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
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 2016 - 2025
Year 2015 - 2016 2016 - 2017 2017 - 2018 2018 - 2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Resident $ 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 $ 4,585,742
Non-Resident 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 5,604,796
Other 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 2,833,762
Total Income Tax $ 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 $ 13,024,301
Number of Returns 2016-2025
Year 2015 - 2016 2016 - 2017 2017- 2018 2018 - 2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Resident 5,337 5,464 5,352 5,493 4,852 4,302 4,732 4,868 5,611 6,985
Non-Resident 10,713 10,578 10,278 10,256 9,426 8,301 8,524 8,343 9,505 9,206
Other 1,750 1,750 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650
Total Returns 17,800 17,792 17,280 17,399 15,928 14,253 14,906 14,861 16,766 17,841
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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
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
2025 25,800,277 793,741 - 26,594,018 - 16,904,955 16,904,955 43,498,973 1,166
NOTE: None of the debt issued by the City is payable through the levy of property tax millages.
SOURCE: The information in these schedules 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, 2025
Total Debt Debt Supported by City
Name of Governmental Unit Outstanding Self Supporting General Revenues
Direct Debt
City of Muskegon:
Revenue Bonds $ 16,904,955 $ 16,904,955 $ -
Capital Improvement Bonds 25,800,277 - 25,800,277
Installment Purchase Agreements 793,741 - 793,741
Component Unit Debt:
Local Development Finance Authority 285,000 285,000 -
Total City Direct Debt $ 43,783,973 $ 17,189,955 $ 26,594,018
City Share as
Gross Percent of Gross Net
Overlapping Debt
Muskegon School District $ 76,490,000 95.84% $ 73,308,016
Orchard View School District 28,994,510 16.61% 4,815,988
Reeth's Puffer School District 44,975,998 0.57% 256,363
Hackley Public Library 1,175,000 95.84% 1,126,120
Muskegon County 124,237,236 13.44% 16,697,485
Muskegon Community College 21,160,000 13.44% 2,843,904
Total Overlapping Debt $ 297,032,744 99,047,876
Total City Direct and Overlapping Debt $ 125,641,894
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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt Limit $ 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 $ 209,510,811
Total net debt applicable to limit 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 26,879,018
Legal debt margin $ 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 $ 159,377,847
Total net debt applicable to the limit as 18.56% 16.78% 14.41% 8.42% 25.70% 24.72% 21.81% 18.25% 15.29% 12.83%
a percentage of debt limit
Legal Debt Margin Calculation for 2025:
Assessed Valuation: $ 2,095,108,113
Legal Debt Limit (10% ) 209,510,811
Total Indebtedness: $ 43,783,973
Debt not Subject to Limitation:
Paid by Special Assessment -
Revenue Bonds (16,904,955)
Debt Subject to Limitation 26,879,018
Legal Debt Margin $ 182,631,793
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 Revenue Bond
Fiscal Gross Operating Available For Debt Service Requirements Coverage
Year Revenue (a) Expenses (b) Debt Service Principal Interest Total Ratio
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
2025 11,633,100 8,761,522 2,871,578 1,093,130 131,286 1,224,416 2.35
Sewage Disposal System
Direct Net Revenue Revenue Bond
Fiscal Gross Operating Available For Debt Service Requirements Coverage
Year Revenue (a) Expenses (b) Debt Service Principal Interest Total Ratio
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
2025 10,578,001 8,996,429 1,581,572 485,000 167,912 652,912 2.42
(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
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%
2025 37,306 1,012,554,999 27,142 36.0 3,325 1,171 388,284,055 8.5%
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
2025 2016
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Mercy General Health Partners 3,536 1 18.0% 4,114 1 27.4%
County of Muskegon 1,078 2 5.5% 755 3 5.0%
State of Michigan 762 3 3.9%
Muskegon Public School District 739 4 3.8% 565 5 3.8%
G.E. Aviation 685 5 3.5% 341 7 2.3%
ADAC Automotive 670 6 3.4% 970 2 6.5%
Muskegon Community College 459 7 2.3% 198 9 1.3%
Johnson Technologies 456 8 2.3%
Muskegon Area Intermediate School District 400 9 2.0%
Orthopaedic Associates 279 10 1.4%
Port City Group Companies 667 4 4.4%
Cole's Quality Foods 180 10 1.2%
SAF Holland USA 345 6 2.3%
Betten Automotive Group 232 8 1.5%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Affirmative Action 1.30 1.46 0.40 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Cemetaries 1.25 1.25 1.25 1.25 2.25 2.25 2.25 2.25 2.25 1.25
City Clerk & Elections 3.00 3.54 3.80 3.80 4.80 5.80 5.80 5.80 5.80 5.00
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 1.05 1.00 1.00 1.00 1.00 1.50
City Manager's Office 2.05 1.75 2.75 2.75 2.75 3.30 3.30 4.30 4.30 3.55
City Treasurer's Office 5.50 5.50 5.50 5.50 5.50 5.30 5.30 5.50 5.50 6.00
Environmental Services 2.00 2.00 2.00 - - - - - - -
Farmers Market 0.05 - 0.20 1.20 1.20 0.70 0.70 1.20 1.20 1.00
Finance Administration 3.00 3.00 3.60 3.00 3.45 3.70 3.70 3.70 3.70 4.60
Fire 35.00 35.00 35.00 26.00 29.00 29.50 29.50 29.50 29.50 29.50
Income Tax Administration 3.50 3.50 3.50 3.50 3.50 3.70 3.70 3.50 3.50 4.00
Information Systems 3.00 3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
Parks 6.00 7.05 7.05 10.05 10.05 10.05 10.05 11.00 11.00 10.75
Recreation - - - - - - - - - 2.70
Planning, Zoning & Economic Development 3.40 3.45 3.45 5.45 6.00 7.00 7.00 6.75 6.75 7.50
Police 88.00 88.00 88.00 89.00 89.00 91.00 91.00 92.00 92.00 93.00
Sanitation 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20
MVH-Major Streets 10.70 10.70 10.70 12.20 12.20 13.20 13.20 12.75 12.75 13.20
MVH-Local Streets 6.70 6.70 6.70 7.20 7.20 7.20 7.20 6.75 6.75 8.20
Community Development 4.00 4.00 3.55 3.55 4.30 5.30 5.30 5.30 5.30 5.40
Sewer Maintenance 9.80 9.80 9.80 9.80 10.80 10.95 10.95 10.70 10.70 11.10
Water Filtration 10.00 10.00 10.00 10.00 11.00 12.15 12.15 11.90 11.90 11.90
Water Maintenance 11.75 11.75 11.75 11.75 12.75 14.90 14.90 16.65 16.65 15.10
Hartshorn Marina Fund 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.25 0.25 1.35
Mercy Health Arena - - - - 3.00 6.00 6.00 6.50 6.50 6.50
Public Service Building 8.50 8.50 8.50 8.50 8.75 8.75 8.75 9.50 9.50 11.15
Engineering 4.95 4.95 4.95 5.95 5.20 4.25 4.25 5.50 5.50 5.35
Equipment 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 5.95
231.00 232.45 233.50 232.50 245.25 257.50 257.50 263.50 263.50 270.50
SOURCE: City of Muskegon Finance Department
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City of Muskegon
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Administrative Services
Elections
Number of registered voters 24,005 24,612 26,136 25,182 28,127 27,889 28,004 28,004 28,699 28,558
Number of votes cast:
Last general election 2,547 13,179 15,271 11,407 3,105 15,156 15,519 15,519 3,386 5,697
Last city election 2,547 13,179 2,254 1,938 3,105 2,968 4,459 4,459 3,386 5,697
Percentage of registered voters voting:
Last general election 11% 54% 58% 45% 11% 54% 55% 55% 16% 20%
Last city election 11% 54% 9% 8% 11% 12% 16% 16% 16% 20%
Financial Services
Property Tax Bills 14,611 14,243 14,229 14,180 15,090 15,117 15,103 15,145 15,060 15,111
Income Tax Returns 17,800 17,792 17,280 17,399 15,928 14,253 14,906 14,861 16,766 17,841
Paper Check Issued to Vendors 1,608 1,675 1,782 1,863 1,946 1,676 1,853 1,689 1,742 1,592
Electronic Payments to Vendors 1,849 1,998 2,104 2,307 2,494 2,465 3,654 3,948 4,109 4,229
Public Safety
Fire Protection
Number of firefighter and officer positions 35 35 23 29 26 29 25 26 27 27
Number of emergency calls 4,938 4,895 4,948 5,106 5,147 4,203 6,018 5,729 5,735 6,565
Police Protection
Number of sworn officer positions 76 75 79 80 80 89 80 80 80 81
Part I (Major) Crimes 1,989 2,816 2,357 1,728 1,621 1,442 808 1,364 1,502 1,152
Public Works
Refuse Collected (Tons per Year) 10,994 11,009 10,801 10,753 11,534 12,289 10,326 11,233 11,180 11,392
Recyclables Collected (Tons per Year) - - - - 160 224 341 356 336 293
Yard Waste - - - - - - - 7,252 6,412 6,416
Water & Sewer
Average daily water consumption (GPD) 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 10,158,971
Number of consumers 13,307 13,248 13,104 13,343 13,422 12,660 12,821 12,876 12,933 12,896
Water main breaks repaired 16 12 15 11 17 13 15 7 7 15
Sewer flows (Millions Gallons per Year) 1,794 1,815 1,832 2,048 2,138 1,596 1,462 1,464 1,437 1,268
Sewer Service Calls 521 462 451 443 475 541 426 463 497 513
SOURCE: City of Muskegon Departments
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City of Muskegon
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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 196.95 196.95 196.95 197.19 187.34 187.34 187.28 187.28 184.29 184.29
Number of streetlights 2,900 2,984 2,967 2,930 2,995 2,995 2,995 2,995 2,994 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 2 2 2 2 2
Sewer
Sanitary sewers (miles) 177.04 177.04 177.04 177.04 177.04 176.69 166.63 166.63 167.50 167.50
Storm sewers (miles) 184.35 184.35 184.35 184.35 184.35 147.58 148.38 148.38 148.38 148.38
Water
Water mains (miles) 195.95 195.95 195.95 195.27 195.27 213.92 214.70 214.70 215.60 215.60
SOURCE: City of Muskegon Departments
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SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS
155
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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, 2025, 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 23, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Muskegon’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of City of Muskegon’s internal control. Accordingly, we do not
express an opinion on the effectiveness of City of Muskegon’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies
may exist that were not identified.
Grand Haven | Grand Rapids | Hart | Muskegon
www.brickleydelong.com
156 Page 165 of 292
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.
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 23, 2025
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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, 2025. 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, 2025.
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.
Grand Haven | Grand Rapids | Hart | Muskegon
www.brickleydelong.com
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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 23, 2025
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City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30, 2025
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, 2024 Transfers (Cash Basis) Expenditures June 30, 2025 Subrecipients
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-20-MC-26-0026 $ 994,698 $ 25,126 $ - $ 26,126 $ - $ (1,000) $ -
COVID-19 - B-20-MW-26-0026 794,564 - - - 10,340 10,340 -
B-21-MC-26-0026 988,508 122,313 - 122,313 - - -
B-22-MC-26-0026 912,894 25,167 - 25,167 - - -
B-23-MC-26-0026 901,291 127,817 - 313,011 301,472 116,278 8,007
B-24-MC-26-0026 885,059 - - 593,280 774,910 181,630 91,098
Program Income 30,889 - - 30,889 30,889 - -
Total CDBG - Entitlement/Special Purpose Grants Cluster 5,507,903 300,423 - 1,110,786 1,117,611 307,248 99,105
Home Investment Partnerships Program 14.239
M-19-MC-26-0215 334,818 59,502 - 63,999 4,497 - -
M-20-MC-26-0215 343,362 - - 8,268 31,805 23,537 -
M-21-MC-26-0215 336,456 - - - - - -
COVID-19 - M-21-MP-26-0215 1,218,250 - - - 9,398 9,398 -
M-22-MC-26-0215 339,650 - - - - - -
M-23-MC-26-0215 325,495 26,254 - 31,270 5,016 - -
M-24-MC-26-0215 251,818 - - 25,182 25,182 -
Program Income 28,295 - - 28,295 28,295 - -
Total Home Investment Partnerships Program 3,178,144 85,756 - 157,014 104,193 32,935 -
Healthy Homes Production Program 14.913
MIHHP0083-22 1,500,000 264,754 - 537,930 540,821 267,645 -
Total U.S. Department of Housing and Urban Development 10,186,047 650,933 - 1,805,730 1,762,625 607,828 99,105
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City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
For the year ended June 30, 2025
Entitlement Accrue d Cash or Accrued
Assistance Program or (Une arned) Adjustments Payments In- Amount of (Une arned) Passe d
Fe deral Grantor/Pass-Through Grantor/ Listing Award Reve nue and Kind Received Grant Revenue Through to
Program or Cluster Title /Identifying Numbe r Number Amount July 1, 2024 Transfe rs (Cash Basis) Expenditures June 30, 2025 Subrecipients
U.S. Department of Justice
Direct programs
Bulletproof Vest Partnership Program 16.607
2021 Grant $ 4,410 $ - $ - $ 770 $ 770 $ - $ -
Edward Byrne Memorial Justice Assistance Grant Program 16.738
15PBJA-23-GG-03505-JAGX 43,247 25,571 - 25,571 - - -
Congressionally Recommended Awards 16.753
15PBJA-24-GG-00218-BRND 380,000 - - 359,718 359,718 - -
Passed through Michigan Department of Health and Human Services
Violence Against Women Formula Grants 16.588
E20244624-00 282,512 15,778 - 52,836 37,058 - -
E20252682-00 282,512 - - 81,555 139,674 58,119 -
565,024 15,778 - 134,391 176,732 58,119 -
Passed through Battle Creek Community Foundation
Project Safe Neighborhood 16.609
2024-25 20,000 - - 2,004 2,004 - -
Passed through Ottawa County
Edward Byrne Memorial Justice Assistance Grant Program 16.738
2022-15PBJA-22-GG-00 16,698 2,385 - 2,385 - - -
Total U.S. Department of Justice 1,029,379 43,734 - 524,839 539,224 58,119 -
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 (4,947,565) - - 1,386,900 (3,560,665) 397,500
Passed through Michigan Strategic Fund
Coronavirus State and Local Fiscal Recovery Funds 21.027
COVID-19 - Revitalization and Placemaking Program 2,975,484 - - 2,565,013 2,565,013 - -
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 1,169,205 - 1,678,464 509,259 -
COVID-19 - 7832-01 539,000 - - 78,935 78,935 - -
3,775,505 1,169,205 - 1,757,399 588,194 - -
Passed through Michigan Department of Natural Resources
Coronavirus State and Local Fiscal Recovery Funds 21.027
COVID-19 - American Rescue Plan Act Local Parks and Trails 250,000 - - 225,000 225,000 - -
Total U.S. Department of Treasury 29,882,883 (3,778,360) - 4,547,412 4,765,107 (3,560,665) 397,500
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City of Muskegon
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
For the year ended June 30, 2025
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, 2024 Transfers (Cash Basis) Expenditures June 30, 2025 Subrecipients
Environmental Protection Agency
Passed through Michigan Department of Environment, Great Lakes, and Energy
Clean Water State Revolving Fund 66.458
5767-01 $ 114,747 $ - $ - $ 114,747 $ 114,747 $ - $ -
5790-01 755,984 - - 755,984 755,984 - -
870,731 - - 870,731 870,731 - -
Drinking Water State Revolving Fund 66.468
7566-01 90,309 - 60,593 90,309 29,716 - -
7467-01 2,757,963 - - 193 193 - -
7832-01 4,100,996 - - 883,270 1,686,562 803,292 -
6,949,268 - 60,593 973,772 1,716,471 803,292 -
Total Environmental Protection Agency 7,819,999 - 60,593 1,844,503 2,587,202 803,292 -
U.S. Department of Energy
Passed through Michigan Department of Environment, Great Lakes, and Energy
State Energy Program 81.041
DE-EE0010079 75,000 - - - 24,500 24,500 -
U.S. Department of Health and Human Services
Passed through Michigan Department of Health and Human Services
Children's Health Insurance Program 93.767
E20241696-00 1,500,000 235,323 - 584,627 349,304 - -
E20252121-00 1,200,000 - - 496,791 760,567 263,776 -
Total U.S. Department of Health and Human Services 2,700,000 235,323 - 1,081,418 1,109,871 263,776 -
TOTAL FEDERAL ASSISTANCE $ 51,693,308 $ (2,848,370) $ 60,593 $ 9,803,902 $ 10,788,529 $ (1,803,150) $ 496,605
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, 2025
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, 2025. 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 de minimis
indirect cost rate as allowed under the Uniform Guidance.
3. The beginning accrual for Drinking Water State Revolving Fund 7566-01 was restated as the State of Michigan retroactively changed the split between Federal and State
grant funding sources.
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, 2025 and federal expenditures per the Schedule of Expenditures of Federal Awards.
Federal revenues per City of Muskegon financial statements
General Fund $ 788,724
State Grants Fund 3,886,900
Water Fund 1,959,270
Other governmental funds 2,878,326
9,513,220
Plus drawdowns on federal loans 1,216,125
Plus program income 59,184
Federal expenditures per the Schedule of Expenditures of Federal Awards $ 10,788,529
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City of Muskegon
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended June 30, 2025
SECTION I—SUMMARY OF AUDITOR’S RESULTS
A. Financial Statements
1. Type of report the auditor issued on whether the financial statements audited were prepared in accordance
with GAAP: Unmodified
2. Internal control over financial reporting:
• Material weakness(es) identified? yes X no
• Significant deficiency(ies) identified? yes X none reported
3. Noncompliance material to financial statements noted? yes X no
B. Federal Awards
1. Internal control over major federal programs:
• Material weakness(es) identified? yes X no
• Significant deficiency(ies) identified? yes X none reported
2. Type of auditor’s report issued on compliance for major federal programs: Unmodified
3. Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? yes X no
4. Identification of major programs:
Assistance Listing Number(s) Name of Federal Program or Cluster
U.S. Department of Treasury
21.027 • Coronavirus State and Local Fiscal Recovery Funds
Environmental Protection Agency
66.458 • Clean Water State Revolving Fund
66.468 • Drinking Water State Revolving Fund
5. Dollar threshold used to distinguish between type A and type B programs: $750,000
6. Auditee qualified as low-risk auditee? yes X no
SECTION II – FINANCIAL STATEMENT FINDINGS
NONE
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
NONE
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166
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CLIENT DOCUMENTS
167
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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
December 23, 2025
U.S. Department of Housing and Urban Development
Washington D.C.
City of Muskegon respectfully submits the following summary of the current status of prior audit findings
contained in the single audit report for the year ended June 30, 2024 dated December 18, 2024.
SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2024-001: MATERIAL WEAKNESS—Completeness of Accounts Payable
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.
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.
Current Status: This recommendation was implemented during the year ended June 30, 2025. No similar
finding was reported during the single audit for the year ended June 30, 2025.
Finding 2024-002: MATERIAL WEAKNESS—Accuracy of Compensated Absences
Condition: There were unrecognized material clerical errors made in the calculation of the liability for
compensated absences.
Recommendation: The City should review its accounting procedures with appropriate personnel and regularly
review compliance with these procedures.
Current Status: This recommendation was implemented during the year ended June 30, 2025. No similar
finding was reported during the single audit for the year ended June 30, 2025.
2 31 .7 2 4.6 72 4 | 933 TERRACE ST, MUSKEGON, MI 49440-1397 | WWW.SHORELINECITY.COM
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U.S. Department of Housing and Urban Development
December 23, 2025
Page 2
SECTION II – FINANCIAL STATEMENT FINDINGS—Continued
Finding 2024-003: MATERIAL WEAKNESS—Completeness of Leases Receivable
Condition: There were material leases receivable which were not recorded in the City’s accounting records.
Recommendation: The City should regularly review its portfolio of leases receivable with all relevant
supervisory personnel to ensure it is complete.
Current Status: This recommendation was implemented during the year ended June 30, 2025. No similar
finding was reported during the single audit for the year ended June 30, 2025.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no findings reported in relation to major federal award programs during the single audit for the
year ended June 30, 2024.
Sincerely,
Ken Grant
Finance Director
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CORRECTIVE ACTION PLAN
December 23, 2025
U.S. Department of Housing and Urban Development
Washington D.C.
City of Muskegon respectfully submits the following Corrective Action Plan for the year ended June 30, 2025.
Name and address of independent public accounting firm:
Brickley DeLong, P.C.
P.O. Box 999
Muskegon, Michigan 49443
Audit period: June 30, 2025
The findings from the Schedule of Findings and Questioned Costs for the year ended June 30, 2025 provided no
findings in either Section II or Section III. Accordingly, there are no matters requiring corrective action as shown
below.
SECTION II – FINANCIAL STATEMENT FINDINGS
There were no findings in relation to the financial statement audit.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no findings in relation to the major federal award programs.
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
23 1. 72 4.6 72 4 | 933 TERRACE ST, MUSKEGON, MI 49440-1397 | WWW.SHORELINECITY.COM
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Establishment of a Commercial
Redevelopment District —356 W. Western Ave.
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 255 of 1978, as amended, King Real Estate Holdings, LLC has requested the
establishment of a Commercial Redevelopment District.
Detailed Summary & Background:
King Real Estate Holdings, LLC has requested the establishment of a Commercial Redevelopment
District for 356 W. Western Ave. Creating the district will enable the property owner to apply for a
Commercial Facilities Exemption certificate. If approved, the certificate will freeze the taxable value
of the building and exempt the new real property investment from local property taxes for the
duration of the exemption.
The proposed redevelopment will repurpose the Century Club into a pediatric office, retail suite
spaces, family-friendly entertainment space, and keep the event venue.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
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 close the public hearing and approve the establishment of the Commercial
Redevelopment District for 356 W. Western Ave. and authorize the Mayor and City Clerk to sign the
attached resolution.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division Public Act 255 of 1978, as amended
Page 180 of 292
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 181 of 292
Resolution No. ______________
RESOLUTION APPROVING THE ESTABLISHMENT OF A COMMERCIAL
REDEVELOPMENT DISTRICT
356 W. Western Ave.
WHEREAS, pursuant to PA 255 of 1978, the City of Muskegon has the authority to
establish “Commercial Redevelopment Districts” within the City of Muskegon at request
of a commercial business enterprise or on its own initiative; and
WHEREAS, King Real Estate Holdings, LLC is requesting the establishment of the
Commercial Redevelopment District for an area in the vicinity of 356 W. Western Ave.
located in the City of Muskegon hereinafter described; and
WHEREAS, the City Commission of the City of Muskegon determined that the district
meets the requirements set forth in section 5 of PA 255 of 1978; and
WHEREAS, written notice has been given by certified mail to all owners of real property
located within the proposed district as required by section 5(3) of PA 255 of 1978; and
WHEREAS, on January 13, 2026 a public hearing was held and all residents and
taxpayers of the City of Muskegon were afforded an opportunity to be heard thereon;
and
WHEREAS, the City of Muskegon deems it to be in the public interest of the City of
Muskegon to establish the Commercial Redevelopment District as proposed;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Muskegon that the following described parcel(s) of land situated in the City of Muskegon,
County of Muskegon, and State of Michigan, to wit:
CITY OF MUSKEGON DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1
UNIT 5 SBJT TO VAC ST/ALLEYS RECOR'D 1041/965 SBJT TO VAC ST/ALLEYS
RECOR'D 1035/629 SBJT TO ESMNT MI BELL TEL CO RECOR'D 94M/564 SBJT TO
ESMNT RECOR'D 1559/795 SBJT TO ESMNT FOR OVERHEAD/UNDERGROUND
ELECTRIC LNS RECOR'D 3724/701
Adopted this 13th Day of January 2026
AYES:
NAYS:
ABSENT:
BY: _______________________
Ken Johnson, Mayor
ATTEST: _______________________
Ann Meisch, Clerk
1/6/25
Page 182 of 292
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission of the City of Muskegon, County of
Muskegon, Michigan at a regular meeting held on January 13, 2026.
_______________________________
Ann Meisch, Clerk
1/6/25
Page 183 of 292
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Request to Establish Commercial Redevelopment District for Century Club
Hi Jocelyn,
hank you for the detailed information on PA 255 and the Facade Improvement Grant. We would like to move
T
forward with establishing a Commercial Redevelopment District for the Century Club property at 356 W Western
Ave.
Project Overview:
e are purchasing the Century Club building to serve as the new home for Muskegon Pediatrics, PLC, a pediatric
W
medical practice currently located at 888 Terrace St. The project includes:
- ain floor: Full build-out for Muskegon Pediatrics (~5,000 SF pediatric clinic)
M
- Upper floor: Continued operation of the Century Club Ballroom as an event venue
- Lower floor: Retained commercial tenant (Skees Tees); future plans include potential family-friendly
entertainment business
Rehabilitation Scope:
The primary renovation is a complete interior build-out of the second floor for medical use, including:
- emolition and new framing/wall layout
D
- New HVAC system ($55,000)
- Electrical ($52,000)
- Plumbing ($12,000)
- Flooring ($48,000)
- Doors and frames ($45,000)
- Built-in casework ($40,000)
- Painting, finishes, and interior improvements
Estimated Cost of Rehabilitation:$475,232 (see attachments for details)
Timeline:
- losing: mid-February 2026 (target)
C
- Construction: 6 months
- Occupancy: July/August 2026
e would like to request placement on the January 14 City Commission agenda if possible. Please let me know
W
what additional documentation you need to complete the application.
Thank you again for your guidance on this.Happy to meet or call if that would be helpful.
Sincerely,
aron King
A
King Real Estate Holdings, LLC
aaron@kingfamilyinc.com
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Attachment A - Builder’s Construction Estimates
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Attachment B - Preliminary Design - Main Level (Muskegon Pediatrics Buildout)
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Issuance of a Commercial Facilities
Exemption Certificate — 356 W. Western Ave.
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 255 of 1978, as amended, King Real Estate Holdings, LLC has requested the
issuance of a Commercial Facilities Exemption Certificate. The certificate will freeze the taxable value
of the building and exempt new real property investment from local taxes.
Detailed Summary & Background:
King Real Estate Holdings, LLC plans to rehabilitate the 15,000-square-foot Century Club building
beginning in February 2026. The project represents a $475,232 investment and is expected to create
two (2) new permanent healthcare positions, retain six (6) existing positions, and generate four (4)
construction jobs.
This rehabilitation will serve as the new home of Muskegon Pediatrics. Skee Tees, a current tenant, will
remain in the building. The existing event venue space will also be maintained, with the potential
addition of a family-friendly entertainment business.
A public hearing for the establishment of the Commercial Redevelopment District is scheduled for
the January 13, 2026, City Commission meeting.
The internal tax committee has reviewed the application and, based on its findings and calculations,
recommends approval of the attached resolution for a term of four (4) years for real property. The
applicant has submitted all required documentation.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
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:
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I move to close the public hearing and approve a four (4) year Commercial Facilities Exemption
Certificate for King Real Estate Holdings, LLC, and authorize the Mayor and City Clerk to sign the
application and resolution.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division Public Act 255 of 1978, as amended
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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Resolution No.__________
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERICAL
FACILITIES EXEMPTION CERTIFICATE
King Real Estate Holdings, LLC
WHEREAS, the City of Muskegon legally established the Commercial Redevelopment
District _____ on January 13, 2026, after a public hearing held on January 13, 2026; and
WHEREAS, the state equalized value of the property proposed to be exempt plus the
aggregate state equalized value of property previously exempt and currently in force
under Public Act 255 of 1978 and under Public Act 198 of 1974 (IFT's) does not exceed
5% of the total state equalized value of the City of Muskegon; and
WHEREAS, the application was approved at a public hearing as provided by section 6(2)
of Public Act 255 of 1978 on January 13, 2026; and
WHEREAS, King Real Estate Holdings, LLC is not delinquent in any taxes related to the
facility; and
WHEREAS, the application is for commercial property as defined in section 3(3) of
Public Act 255 of 1978; and
WHEREAS, the applicant King Real Estate Holdings, LLC has provided answers to all
required questions under Section 6(1) of PA 255 of 1978 to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that the construction, restoration or
replacement of the facility shall be completed by August 31, 2026; and
WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of
four (4) years and no extension will be allowed; and
WHEREAS, the commencement of the construction, restoration or replacement of the
facility did not occur more than 45 days prior to the filing of the application for
exemption; and
WHEREAS, the commencement of the construction, restoration or replacement of the
facility did not occur prior to the establishment of the Commercial Redevelopment
District; and
WHEREAS, the application relates to a construction, restoration or replacement program
which when completed constitutes a new, replacement or restored facility within the
meaning of Public Act 255 of 1978 and that is situated within a Commercial
Redevelopment District established under Public Act 255 of 1978; and
6.17.2024
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WHEREAS, completion of the facility is calculated to, and will at the time of issuance of
the certificate, have the reasonable likelihood to, increase commercial activity, create
employment and retain employment in which the facility is situated; and
WHEREAS, the restoration includes improvements aggregating 10% or more of the true
cash value of the property at commencement of the restoration as provided by section
4(6) of Public Act 255 of 1978.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Muskegon
Be and hereby is granted a Commercial Facilities Exemption for the real property,
excluding land, located in Commercial Redevelopment District ______at 356 W.
Western Ave. for a period of four (4) years, beginning December 31, 2026, and ending
December 31, 2030 pursuant to the provisions of PA 255 of 1978, as amended.
Adopted this 13th Day of January 2026.
AYES:
NAYS:
Absent:
BY: __________________________________
Ken Johnson, Mayor
ATTEST: _________________________________
Ann Meisch, Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission of the City of Muskegon, County of
Muskegon, Michigan at a regular meeting held on January 13, 2026.
_______________________________
Ann Meisch, Clerk
6.17.2024
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Approval of Minutes
Submitted by: Ann Meisch, City Clerk Department: City Clerk
Brief Summary:
To approve minutes of the December 9, 2025, City Commission Meeting.
Detailed Summary & Background:
Goal/Action Item:
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
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: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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CITY OF MUSKEGON
CITY COMMISSION MEETING
December 9, 2025 @ 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 9,
2025. Pastor Jeremy Lenertz from First Wesleyan Church of Muskegon, 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
Rachel Gorman, Katrina Kochin, Jay Kilgo, and Destinee Keener, City Manager
Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch
Absent: Commissioner Willie German, Jr.
2025-96 HONORS, AWARDS, AND PRESENTATIONS
A. 2025 Years of Service Awards Employee Relations
Dwana Thompson, EEO and Employee Relations Director, Mayor Johnson and
Commissioners congratulated and thanked City employees for their Years of
Service ranging from 5 to 35 years with the City of Muskegon. Certificates were
presented by Dwana Thompson and Mayor Johnson to those in attendance.
B. Outgoing Commissioner Recognition Manager's Office
Mayor Johnson read a proclamation honoring Commissioner Rachel Gorman
thanking her for her exemplary service, leadership, and lasting contributions to
our Community.
C. Proclamation Honoring Kwame James City Clerk
Mayor Johnson read a proclamation honoring Kwame James for 11 plus years
of dedicated service providing music at the Farmers Market.
D. Recognition of John C. Schrier, City Attorney Manager’s Office
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Mayor Johnson and Commission thanked John C. Schrier for his service as City
Attorney and dedicated and named the traffic circle located at the end of
Terrace Street as John C. Schrier Circle.
Motion by Commissioner Kilgo, second by Commissioner Kochin to adopt and
approve the proclamation/resolution for John Schrier.
VOTE: All Ayes
MOTION PASSES
2025-97 PUBLIC HEARINGS
A. Neighborhood Enterprise Zone Certificates - 502 Mary St. and 508 Mary
St. Economic Development
Staff is requesting the approval of Neighborhood Enterprise Zone (NEZ)
certificates for 15 years for a new construction home at 502 Mary St. and 508
Mary St.
Stephens Homes and Investments LLC has submitted two applications for
Neighborhood Enterprise Zone (NEZ) certificates for the construction of single-
family homes at 502 Mary St. and 508 Mary St. The project cost for 502 Mary St. is
estimated at $175,000 and the project cost for 508 Mary St. is estimated at
$140,000. These properties were previously owned by the City of Muskegon. The
applicant has met all local and state requirements for the issuance of NEZ
certificates. The Neighborhood Enterprise Zone Act provides for the
development and rehabilitation of residential housing located within eligible
distressed communities. Approval of these applications would grant the future
property owners a tax abatement that reduces their property taxes by
approximately 50% for up to 15 years.
STAFF RECOMMENDATION: I move to close the public hearing and approve
Neighborhood Enterprise Zone (NEZ) certificates for 15 years at 502 Mary St. and
508 Mary St. and authorize the City Clerk and Mayor to sign the applications
and resolutions.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Kilgo, second by Commissioner Keener, to close the
public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates
for 15 years at 502 Mary St. and 508 Mary St. and authorize the City Clerk and
Mayor to sign the applications and resolutions.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, Gorman, and Kochin
Nays: None
MOTION PASSES
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B. Neighborhood Enterprise Zone Certificates - 1355 Adams Ave. and 1366
Leonard Ave. Economic Development
Staff is requesting the approval of Neighborhood Enterprise Zone (NEZ)
certificates for 15 years for a new construction home at 1355 Adams Ave. and
1366 Leonard Ave.
West Urban Properties LLC has submitted two applications for Neighborhood
Enterprise Zone (NEZ) certificates for the construction of single-family homes at
1355 Adams Ave. and 1366 Leonard Ave. The estimated project cost for both of
these properties is $294,900. The finished layout for both properties will consist of
two bedrooms and one bathroom, but homeowners can upgrade to four
bedrooms and two bathrooms. These properties were previously owned by the
City of Muskegon. The applicant has met all local and state requirements for
the issuance of NEZ certificates. The Neighborhood Enterprise Zone Act
provides for the development and rehabilitation of residential housing located
within eligible distressed communities. Approval of these applications would
grant the future property owners a tax abatement that reduces their property
taxes by approximately 50% for up to 15 years.
STAFF RECOMMENDATION: I move to close the public hearing and approve
Neighborhood Enterprise Zone (NEZ) certificates for 15 years at 1355 Adams
Ave. and 1366 Leonard Ave. and authorize the City Clerk and Mayor to sign the
applications and resolutions.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Keener, second by Commissioner Kochin, to close
the public hearing and approve Neighborhood Enterprise Zone (NEZ)
certificates for 15 years at 1355 Adams Ave. and 1366 Leonard Ave. and
authorize the City Clerk and Mayor to sign the applications and resolutions.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair
Nays: None
MOTION PASSES
C. Neighborhood Enterprise Certificate - 289 Meeking St. Economic
Development
Staff is requesting the approval of Neighborhood Enterprise Zone (NEZ)
certificates for 15 years for a new construction home at 289 Meeking St.
Deanna Myers "A Venture Investments LLC" has submitted an application for a
Neighborhood Enterprise Zone (NEZ) certificate for the construction of a single-
family home at 289 Meeking Street. The property has three bedrooms and 2
bathrooms. The estimated project cost is $166,000. The applicant has met all
local and state requirements for the issuance of a NEZ certificate. The
Neighborhood Enterprise Zone Act provides for the development and
rehabilitation of residential housing located within eligible distressed
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communities. Approval of these applications would grant the future property
owners a tax abatement that reduces their property taxes by approximately
50% for up to 15 years.
STAFF RECOMMENDATION: I move to close the public hearing and approve a
Neighborhood Enterprise Zone (NEZ) certificate for 15 years at 289 Meeking St.
and authorize the City Clerk and Mayor to sign the application and resolution.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Kochin, second by Commissioner Keener, to close
the public hearing and approve a Neighborhood Enterprise Zone (NEZ)
certificate for 15 years at 289 Meeking St. and authorize the City Clerk and
Mayor to sign the application and resolution.
ROLL VOTE: Ayes: Kilgo, Keener, Gorman, Kochin, St.Clair, and Johnson
Nays: None
MOTION PASSES
D. Establishment of a Commercial Redevelopment District — 380 W.
Western Ave., Suite 140 Economic Development
Pursuant to Public Act 255 of 1978, as amended, the City of Muskegon has
requested the establishment of a Commercial Redevelopment District on
behalf of ZINI LLC.
The City of Muskegon has requested the establishment of a Commercial
Redevelopment District for 380 W. Western Ave., Suite 140 on behalf of ZINI LLC.
Creating the district will enable the property owner to apply for a Commercial
Facilities Exemption certificate. If approved, the certificate will freeze the
taxable value of the building and exempt the new real property investment
from local property taxes for the duration of the exemption.
The proposed redevelopment will take an old Subway and turn it into a tasting
room offering craft cocktails and small bites.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
establishment of the Commercial Redevelopment District for 380 W. Western
Ave., Suite 140 and authorize the 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 Keener, second by Commissioner Gorman, to close
the public hearing and approve the establishment of the Commercial
Redevelopment District for 380 W. Western Ave., Suite 140 and authorize the
Mayor and City Clerk to sign the resolution.
ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
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MOTION PASSES
E. Issuance of a Commercial Facilities Exemption Certificate — 380 W.
Western Ave., Suite 140 Economic Development
Pursuant to Public Act 255 of 1978, as amended, ZINI LLC has requested the
issuance of a Commercial Facilities Exemption Certificate. The certificate will
freeze the taxable value of the building and exempt new real property
investment from local taxes.
ZINI LLC plans to rehabilitate a 2,304 sq. ft. facility beginning in December 2025
located in the Hines Building. The project represents a $73,000 investment and is
expected to create between seven (7) and 10 jobs.
The applicant owns Zini, a vodka brand, and plans to bring craft cocktails and
small bites to the downtown area.
A public hearing on the establishment of the Commercial Redevelopment
District is scheduled for the December 9, 2025, City Commission meeting.
The internal tax committee has reviewed the application and, based on their
findings and calculations, recommends approval of the resolution for a term of
four (4) years for real property. The applicant has submitted all required
documentation.
STAFF RECOMMENDATION: I move to close the public hearing and approve a
four (4) year Commercial Facilities Exemption Certificate for ZINI LLC, and
authorize the Mayor and City Clerk to sign the application and 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 Commissioner Kochin, to close the
public hearing and approve a four (4) year Commercial Facilities Exemption
Certificate for ZINI LLC, and authorize the Mayor and City Clerk to sign the
application and resolution.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
F. Brownfield Plan Amendment #2 - Betten Brownfield Economic
Development
The City of Muskegon is requesting approval of Betten Brownfield Plan
Amendment #2. This amendment includes extending the brownfield years until
2039.
In 2008, the BRA and the City of Muskegon approved a brownfield plan
amendment for 2410, 2474, 2477, & 2501 South Henry Street. This brownfield tax
capture was used to reimburse any eligible activities for the Betten project with
additional interest at 6.5% until reimbursement was complete. The total capture
was around $16 million for a 16-year period which ends December 31, 2025.
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The Brownfield Plan was experiencing low performance, so the City loaned the
BRA $1.66 million to pay off the Betten brownfield and to reduce the interest
burden and accelerate the reimbursement commitment. The BRA would then
repay the City over several years at an interest rate of 3.25 through tax
increments on the property. Because this plan ends this year, it has not
performed enough to be able to pay the City the whole $1.6 million.
A few things to note:
• Table 3 – Row 19. Per the original agreement, the BRA should have been
receiving $10,000 per annum. I have made sure to model this for the full
cycle.
• Table 3 – Simple Interest Expenses: It started at 6.5%, was reduced to
3.5%, and then I have it coming back to 5% to bring it back to the
standard that is being used with every other property. This should be
included with the BRA amendment.
• Timeline: I am showing the following:
o The last amended plan had this completing December 31, 2025.
o Once amended, this should be complete in 2031.
o The 5 year capture will end in 2036.
o I recommended adding 14 years to the plan to bring this to a full
30 year term regardless, to ensure enough time even if this doesn’t
perform as I forecasted it.
• Financials
o Presently the Brownfield is underperforming by $613k.
o Once amended, it will break even in 2031.
o The 5 year capture is forecasted at $778k
o This is a total swing of $1,391,000, taking the brownfield from being
in the red to being in the black.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
resolution for Brownfield Plan Amendment #2 for Betten Brownfield and
authorize the Mayor and City Clerk to sign.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Kochin, second by Commissioner Kilgo, to close the
public hearing and approve the resolution for Brownfield Plan Amendment #2
for Betten Brownfield and authorize the Mayor and City Clerk to sign.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
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FEDERAL/STATE/COUNTY OFFICIALS UPDATE
Muskegon County Commissioner Jessica Cook read and presented resolutions
from the State to Commissioner Gorman and Attorney John Schrier.
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
Chief Kozal gave an update on the Jackson Hill tragedy and thanked the
community for their help.
2025-98 CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve minutes of the November 25, 2025, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. PA 198 Industrial Facilities Exemption — 2034 Latimer Drive Economic
Development
Pursuant to Public Act 198 of 1974, as amended, Johnson Technology, INC has
requested the issuance of an Industrial Facilities Exemption Certificate for their
property located at 2034 Latimer Drive.
Johnson Technology, Inc., a subsidiary of GE Aerospace, has submitted an
application for an Industrial Facilities Exemption (IFT) certificate for real property
improvements at 2034 Latimer Drive. The company is proposing a 20,000 sq. ft.
addition with a total investment of $9,078,845. This addition will expand shipping
and receiving facilities and add manufacturing floor space to support
increasing production demands.
If approved, the IFT certificate would reduce property taxes on the real
property improvements by 50% for the duration of the exemption.
Johnson Technology, Inc. is an aircraft engine parts manufacturer
headquartered in the City of Muskegon, with additional facilities in Norton
Shores. GE Aerospace employs over 330 people at its Muskegon location and
plans to hire an additional 90 employees as part of this expansion. GE
Aerospace (formerly GE Aviation) has been part of the Muskegon area since
1997, when it acquired Johnson Technology. The company is also investing $70
million in a separate expansion in Norton Shores and has announced a broader
$1 billion nationwide commitment.
Due to Johnson Technology’s status as a federal contractor and pursuant to
Executive Order 14173, the company is not subject to local affirmative action
plan requirements. However, Johnson Technology remains committed to non-
discrimination and ensuring equal opportunity for all employees and
applicants, and has provided the City with a copy of its Respectful Workplace
Policy reflecting that commitment.
Following its review, the City’s Internal Tax Committee recommends approval of
a 12-year abatement term for the proposed investment.
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STAFF RECOMMENDATION: I move to approve the issuance of an Industrial
Facilities Exemption certificate for a period of 12 years for the property located
at 2034 Latimer Dr. and to authorize the Mayor and City Clerk to sign the
application and the resolution.
C. Sale of 496 Octavius, 669 Jackson, 677 Jackson, 704 Leonard, 58 E
Grand, 181 Irwin, 316 E. Forest, 326 E. Forest, 1608 Smith, 1679 Terrace,
1728 Terrace, and 1163 Sanford. Planning
Staff is seeking authorization to sell the City-owned vacant lots at 496 Octavius,
669 Jackson, 677 Jackson, 704 Leonard, 58 E Grand, 181 Irwin, 316 E. Forest, 326
E. Forest, 1608 Smith, 1679 Terrace, 1728 Terrace, and 1163 Sanford to Stephen
Benedict, Stephens Home and Investments LLC.
Stephen Benedict, Stephens Home and Investments LLC, would like to
purchase the City-owned buildable lots at 496 Octavius, 669 Jackson, 677
Jackson, 704 Leonard, 58 E Grand, 181 Irwin, 316 E. Forest, 326 E. Forest, 1608
Smith, 1679 Terrace, 1728 Terrace, and 1163 Sanford to build single family
homes. 1680 Smith will be split into two buildable lots, with new addresses on E.
Forest. The purchase price will be $37,800 (75% of the True Cash Value of
$50,400).
STAFF RECOMMENDATION: To authorize the Code Coordinator to complete the
sale of 496 Octavius, 669 Jackson, 677 Jackson, 704 Leonard, 58 E Grand, 181
Irwin, 316 E. Forest, 326 E. Forest, 1608 Smith, 1679 Terrace, 1728 Terrace, and
1163 Sanford, to Stephen Benedict, Stephens Home and Investments LLC, as
described in the purchase agreement and to have the Mayor and Clerk sign
the purchase agreement.
E. Landscaping Contract Extension Public Works
In 2023, Barry's Greenhouse & Landscaping was awarded a three-year
landscaping contract for various areas downtown. There is an opportunity for a
4th-year extension of this contract.
In 2022, staff had a request for proposals for a landscaping contract that
covers various areas downtown. At the Commission meeting on February 28,
2023, the contract was awarded to Barry's Greenhouses & Landscaping for
three years with options to extend a fourth and fifth year. The fourth-year
contract total will be $119,118.79. This amount will cover:
• Western Avenue, Third Street, and downtown flower pots are paid for by
the DDA.
• City Hall and Shoreline Dr are paid from the general fund.
• Hackley Park is reimbursed from the Community Foundation.
• The Farmers Market is paid for through the Farmers Market's budget.
STAFF RECOMMENDATION: I move to authorize staff to extend the existing
landscaping contract with Barry's Greenhouses & Landscaping for an
additional year with a contract total of $119,118.79.
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F. HOME ARP Duplex Developer Selection Community & Neighborhood
Services
To approve staff selection of developers of duplex housing.
On September 29th, 2025, the City of Muskegon requested proposals from
qualified housing development agencies, nonprofits, or development teams to
utilize up to $1,000,000 in HOME-ARP funds to develop duplex housing units in
the City of Muskegon for qualifying populations as defined by HUD’s HOME-ARP
guidelines. The objective is to increase the availability of affordable rental
housing units targeted to individuals and families who are homeless, at risk of
homelessness, or in other vulnerable populations as defined in the HOME-ARP
Notice (CPD-21-10).
The City's goal is to create, at minimum, six to twelve units of housing in the City
of Muskegon for qualifying populations. The City has not established any
preferences related to the qualifying population and intends for each unit to
be filled first come, first served. HUD defines the qualifying population as:
1. Homeless
2. At risk of experiencing homelessness
3. Fleeing or attempting to flee domestic violence, dating violence, sexual
assault, stalking or human trafficking; or
4. An “other” qualifying population.
4 proposals were received and outlined below:
1. Orange Fin Properties LLC/ Builder- Sjaarda Homes — Requested $375,000 to
create 2 stacked duplexes 3 bedroom/ 1 bath each. Location is 300 and 370
Allen Ave. Lots have been purchased from the City of Muskegon. The company
estimates the rents to be around $615 per month. They have obtained a loan in
the amount of $330,000 at 6.5 interest over 25 years. The total cost is $780,000
and owner equity of $75,000. Homes will be marketed to populations at or
below 30% AMI. The timeline is 12 months.
2. Artision Group — Proposes to create a 4-unit duplex that will house 12
individuals. This project is an adult foster care model to assist with medication
management, activities of daily living, social connections, outings and
transportation. The start date is late spring 2026 with a completion date of
January 2027. Artision is requesting $1,000,000 for hard, soft and startup costs.
3. Organic Care — Proposes to build a modular triplex at 967 Reynolds for foster
care housing at $400,000. They are requesting $100,000 in funding to support
this development. Marketed to those who are at risk of homelessness, existing
foster care (adult foster care), veterans or housing cost burden adults. The
triplex will contain 9 bedrooms at a rate of $1,000 per month per room. The
timeline provided is 6 months.
4. Blue Fin Properties LLC — Proposes Duplexes and 3 Accessory Dwelling Units
(ADU) development housing options for the City of Muskegon. There are two
options:
Option A: $279,750 — total project cost (contingent upon payment in lieu of
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taxes (PILOT) approval)
Option B: down payment plus subsidy to sustain affordable housing under the
standard millage rate.
3 stacked duplexes, 3 ADU. Target is clients who are served through Goodwill
and Michigan Works. The intent is to establish a workforce housing portfolio. The
location is 499 Oak Ave. 638 and 644 Oak Ave. The estimated rent is around
$1200 a month or $500 room with ensuite. 1 Bed/ bath at around $700.
Of all the proposals, Orange Fin and Blue Fin are the most qualified respondents
to ensure HUD compliance. The next step is to negotiate a development/sub-
recipient agreement that lays out the requirements of the HOME ARP program.
The amount of the request for both proposals is around $700,000 and the City
will grant the entire allocated amount of $1,000,000 to cover expenses for
environmental review and other soft costs associated with building duplexes.
STAFF RECOMMENDATION: Motion to approve the recommended qualified
bidders — Orange Fin and Blue Fin Properties LLC for the HOME ARP Program as
presented, and to authorize the CNS Director to create a development
agreement with said bidders for Commission consideration.
G. Fireworks Display for NYE Ball Drop City Clerk
Pyrotecnico is requesting approval of a fireworks display permit for January 1,
2026, in the parking lot between 3rd and 4th Street, west of Shoreline Drive. The
Fire Marshall will inspect the fireworks on the day of the event.
STAFF RECOMMENDATION: To approve the fireworks display permit for
Pyrotecnico, contingent upon inspection of the fireworks and approval of the
insurance.
J. SAFEBuilt Contract Award Public Safety
Staff recommends awarding a three-year contract to SAFEBuilt to continue
providing Building Inspection Services for the City of Muskegon. SAFEBuilt is the
City's current provider and has demonstrated strong performance,
comprehensive service capability, and reliable responsiveness. After reviewing
the three proposals received, staff determined that SAFEBuilt is the most
qualified firm to continue providing these services.
On Monday, December 1, 2025, the City Commission at its Legislative Policy
Committee meeting directed staff to develop a 3-year contract renewal with
SAFEBuilt. The updated Contract follows this memo and will run from January 1,
2026, through December 31, 2028.
The contract does have an auto-renewal for 12 months at the end of
December 2028 "as approved by the City Commission" (Sec. 8.1). The City can
give 90 days' notice at any time to terminate the agreement (Sec. 8.3).
Please see Exhibit C, "Performance Standards," for SAFEBuilt's expectations (p.
19 of the contract). This includes the following: "SAFEBuilt will utilize customer
service surveys to determine if department activity is satisfactory for the end
user and to identify areas of strengths and areas that need improvement."
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STAFF RECOMMENDATION: I move to award SAFEBuilt a three-year contract for
the building and inspection services for the City of Muskegon.
K. Zoning Ordinance Amendment - Permitted Yard
Encroachments SECOND READING Planning
Staff-initiated request to amend Section 2307 of the zoning ordinance to modify
the permitted yard encroachment criteria.
This amendment is to clarify some information found in Section 2307 (permitted
yard encroachments) of the zoning ordinance. The amendment will clean up
some language regarding porches that encroach on the front setback
requirement and will also allow steps on a porch to encroach a little further
than currently allowed. This amendment will also eliminate #4 in the section
that describes regulations for subdivisions that were 90% developed prior to
1940. Zoning reform has replaced the need for these requirements.
The Planning Commission unanimously recommended approval of the request
at their November 13 meeting.
STAFF RECOMMENDATION: I move the request to amend Section 2307 of the
zoning ordinance to modify the permitted yard encroachment criteria be
approved.
L. Zoning Ordinance Amendment - Residential Design Criteria SECOND
READING Planning
Staff-initiated request to amend Section 2319 of the zoning ordinance to modify
the residential design criteria.
These minor amendments are to address some incorrect information in the
zoning ordinance that was created when zoning reform was approved. These
changes would also require a house to have a door at the front of the house,
which is not required as of now. The numbering of the design requirements has
also been updated.
The Planning Commission unanimously recommended approval of the request
at their November 13 meeting.
STAFF RECOMMENDATION: I move the request to amend Section 2319 of the
zoning ordinance to modify the residential design criteria be approved.
Motion by Commissioner Keener, second by Commissioner Kilgo, to adopt the
Consent Agenda as presented minus Items D, H, I, and M.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair
Nays: None
MOTION PASSES
2025-99 ITEMS REMOVED FROM THE CONSENT AGENDA
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D. Amendment to Purchase and Development Agreement: 450/454
Orchard. Planning
Staff is seeking authorization to amend the Purchase and Development
Agreement with RSW Holdings LLC and Barrowstone Capital LLC (approved on
June 10, 2025).
Staff is seeking authorization to amend the Purchase and Development
Agreement with RSW Holdings LLC and Barrowstone Capital LLC (approved on
June 10, 2025) to allow the total number of homes to be built to be four (4)
instead of the original five (5). This agreement approved the purchase of three
parent parcels that were to be split into five build-able lots for the construction
of a single-family home on each lot. 450 Orchard was split into two lots,
resulting in a new address of 454 Orchard. After construction began, the
placement of two houses on this lot resulted in encroachment on neighboring
properties. Maximizing density here would cause an undue hardship for the
neighbor. Staff would like to seek approval for an amendment and combine
this lot back to its original dimension and allow the developer to build one
single-family home.
STAFF RECOMMENDATION: To authorize the Code Coordinator to amend the
Purchase and Development Agreement with RSW Holdings LLC and
Barrowstone Capital LLC (approved on June 10, 2025), as described, and to
have the Mayor and Clerk sign the purchase agreement addendum.
Motion by Commissioner Kilgo, second by Commissioner Kochin, to authorize
the Code Coordinator to amend the Purchase and Development Agreement
with RSW Holdings LLC and Barrowstone Capital LLC (approved on June 10,
2025), as described, and to have the Mayor and Clerk sign the purchase
agreement addendum.
ROLL VOTE: Ayes: Kilgo, Keener, Kochin, St.Clair, and Johnson
Nays: None
MOTION PASSES
H. Senior Municipal Funding FY26 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 $125,315.00 from the County of Muskegon FY26 Municipal
Senior Millage funding is budgeted for the following programs:
Home Repairs (CNS): $105,315.00
Senior Power of Produce: $ 20,000.00
STAFF RECOMMENDATION: To approve the budget proposed for City of
Muskegon programs utilizing FY26 Municipal Senior Millage Funds from the
County of Muskegon.
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Motion by Commissioner Kochin, second by Commissioner Keener, to approve
the budget proposed for City of Muskegon programs utilizing FY26 Municipal
Senior Millage Funds from the County of Muskegon.
ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
I. Issuance of a Commercial Facilities Exemption Certificate — 431 E.
Laketon Ave. Economic Development
This is a repeat agenda item as the date was wrong on the certificate
resolution.
Pursuant to Public Act 255 of 1978, as amended, Gigi's Grill has requested the
issuance of a Commercial Facilities Exemption Certificate. The certificate will
freeze the taxable value of the building and exempt new real property
investment from local taxes.
This is a repeat agenda item as the date was wrong on the certificate
resolution.
Gigi's Grill plans to rehabilitate an 18,686 sq. ft. facility beginning in November
2025. The project represents a $65,000 investment and is expected to create
between seven (7) and 10 jobs.
The applicant was the Pastor of the building when it was previously a church
and now wants to make it into a restaurant. They have been operating outside
the building selling authentic cuisine.
A public hearing on the establishment of the Commercial Redevelopment
District was held at the October 14, 2025, City Commission meeting.
The internal tax committee reviewed the application and, based on their
findings and calculations, recommends approval of the attached resolution for
a term of eight (8) years for real property. The applicant has submitted all
required documentation.
STAFF RECOMMENDATION: I move to approve an eight (8) year Commercial
Facilities Exemption Certificate for Gigi's Grill, and authorize the Mayor and City
Clerk to sign the amended resolution.
Motion by Commissioner Keener, second by Commissioner Kochin, to approve
an eight (8) year Commercial Facilities Exemption Certificate for Gigi's Grill,
and authorize the Mayor and City Clerk to sign the amended resolution.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
M. Request to establish a Plant Rehabilitation District at 701 W. Laketon
Ave. Economic Development
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Pursuant to Public Act 198 of 1974, as amended, SRS Fiberglass Products, 1041 E.
Laketon Ave., Muskegon, MI has requested the establishment of a Plant
Rehabilitation District for property located at 701 W. Laketon Ave., Muskegon,
MI.
This is being brought back up to the Commission as the Michigan Department
of Treasury is requiring us to add some verbiage to the resolution. The following
language was added: IT IS HEREBY DETERMINED that the property comprising
not less than 50 percent of the state equalized valuation of the property within
the proposed Plant Rehabilitation District is obsolete; and..."
SRS Fiberglass Products has submitted a request to establish a Plant
Rehabilitation District at 701 W. Laketon Avenue, the former Great Lakes Die
Cast facility.
SRS is in the process of launching a new company to support and expand their
current fiberglass product operations. The new entity plans to make significant
capital investments into rehabilitating the facility and anticipates creating over
50 high-paying jobs within the next two years.
According to Public Act 198 of 1974, as amended, the creation of a Plant
Rehabilitation District is a required first step before a business can apply for an
Industrial Facilities Tax (IFT) Exemption Certificate, which provides a property tax
abatement on qualified real property investments.
STAFF RECOMMENDATION: I move to approve the amended resolution
establishing a Plant Rehabilitation District at 701 W. Laketon Ave. and authorize
the City Clerk and Mayor to sign.
Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve
the amended resolution establishing a Plant Rehabilitation District at 701 W.
Laketon Ave. and authorize the City Clerk and Mayor to sign.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
2025-100 UNFINISHED BUSINESS
A. AP Update Manager's Office
City Manager provided an update on items received from Adelaide Pointe as
required by December 1, 2025.
2025-101 NEW BUSINESS
A. Rezoning of 501 E Western Ave from Open Space Recreation (OSR) to
Waterfront Industrial PUD (WI-PUD) SECOND READING Planning
Staff-initiated request to rezone 501 E Western Ave from Open Space
Recreation (OSR) to Waterfront Industrial PUD (WI-PUD).
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Staff is requesting to rezone a portion of Fisherman's Landing (501 E Western) to
WI-PUD to allow for port activities on-site. Once the property is rezoned to WI-
PUD, the owner would be able to apply for a PUD for port-related activities. The
remainder of the property will remain OSR zoning, and the boat launch, fishing
areas, and bathrooms will remain open to the public. About 3.5 of the 5
parking lots on-site will remain (about 46 parking spaces to be eliminated). The
map depicts the portion of the property to be rezoned and the zoning
ordinance excerpts for WI-PUD and OSR.
This rezoning request is related to the "land swap" project between the City,
Mart Dock, and Verplank. More information regarding the project can be
found here: https://muskegon-mi.civilspace.io/en/projects/connecting-
community-to-the-water-ports-and-parks
The land swap project would help complete several goals identified in City
plans, including the following:
o Increasing publicly-accessible land along the waterfront - Imagine
Muskegon Lake (page 10).
o Increasing publicly-accessible shoreline - Imagine Muskegon Lake (page
10)
o Increasing multi-use paths and trails align the shoreline - Imagine
Muskegon Lake (page 10)
o Increasing mixed-use development along the waterfront - Imagine
Muskegon Lake (page 11)
o Activating the Mart Dock property as an activity center - Imagine
Muskegon Lake (page 37,40,41)
o Habitat restoration at the future park on the Verplank site - Imagine
Muskegon Lake (page 59)
o Connecting the Western & Central Waterfront Districts to Downtown -
Imagine Muskegon Lake (page 15)
o Become regionally and nationally designated by organizations that will
bring visibility and economic development to Muskegon Lake - Master
Plan (Economic Development, page 19)
o Improve the environmental quality of greenway corridors by cleaning up
contaminated sites, safeguarding areas highly susceptible to private land
use, and reducing dumping - Master Plan (Natural Features, page 13)
o Increase and enhance publicly-accessible amenities along the
waterfront and soften shorelines where possible - Master Plan (Economic
Development, page 18)
o Invest in placemaking opportunities that capitalize on community assets -
Master Plan (Economic Development, page 10)
o Increase access to the Muskegon Lake shoreline - Master Plan (Jackson
Hill, page 11).
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The Planning Commission recommended approval of the rezoning by a 7-2
vote at their special meeting on October 23.
STAFF RECOMMENDATION: I move that the request to rezone a portion of the
property at 501 E. Western Ave. from Open Space Recreation to Waterfront
Industrial PUD be approved.
Motion by Commissioner Keener, second by Commissioner Kilgo, that the
request to rezone a portion of the property at 501 E. Western Ave. from Open
Space Recreation to Waterfront Industrial PUD be approved.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, and Gorman
Nays: Kochin
MOTION PASSES
B. Rezoning of 560 Mart St from Waterfront Marine (WM) to Waterfront
Industrial PUD (WI-PUD) SECOND READING Planning
Request to rezone a portion of the property at 560 Mart St from Waterfront
Marine (WM) to Waterfront Industrial PUD (WI-PUD), by West Michigan Dock &
Market Corp.
The applicant is requesting to rezone 23.5 acres of the 43.5 acre site to WI-PUD.
The area to be rezoned is located behind the existing security fence. This area
has historically been used for port-related activities. Although these uses are not
allowed in the WM zoning district, they are considered legally non-conforming
(grandfathered). Rezoning this portion of the property to WI-PUD would allow
the applicant to apply for a PUD for port-related uses, which would allow them
to become legally-conforming. The rest of the parcel would remain under
Waterfront Marine (WM) zoning.
This rezoning request is related to the "land swap" project between the City,
Mart Dock, and Verplank. More information regarding the project can be
found here: https://muskegon-mi.civilspace.io/en/projects/connecting-
community-to-the-water-ports-and-parks
The land swap project would help complete several goals identified in City
plans, including the following:
o Increasing publicly-accessible land along the waterfront - Imagine
Muskegon Lake (page 10).
o Increasing publicly-accessible shoreline - Imagine Muskegon Lake (page
10)
o Increasing multi-use paths and trails align the shoreline - Imagine
Muskegon Lake (page 10)
o Increasing mixed-use development along the waterfront - Imagine
Muskegon Lake (page 11)
o Activating the Mart Dock property as an activity center - Imagine
Muskegon Lake (page 37,40,41)
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o Habitat restoration at the future park on the Verplank site - Imagine
Muskegon Lake (page 59)
o Connecting the Western & Central Waterfront Districts to Downtown -
Imagine Muskegon Lake (page 15)
o Become regionally and nationally designated by organizations that will
bring visibility and economic development to Muskegon Lake - Master
Plan (Economic Development, page 19)
o Improve the environmental quality of greenway corridors by cleaning up
contaminated sites, safeguarding areas highly susceptible to private land
use, and reducing dumping - Master Plan (Natural Features, page 13)
o Increase and enhance publicly-accessible amenities along the
waterfront and soften shorelines where possible - Master Plan (Economic
Development, page 18)
o Invest in placemaking opportunities that capitalize on community assets -
Master Plan (Economic Development, page 10)
o Increase access to the Muskegon Lake shoreline - Master Plan (Jackson
Hill, page 11).
The Planning Commission recommended approval of the request by a 7-2 vote
at their special meeting on October 23.
STAFF RECOMMENDATION: I move that the request to rezone a portion of the
property at 560 Mart St. from Waterfront Marine to Waterfront Industrial PUD be
approved.
Motion by Commissioner Kilgo, second by Commissioner Kochin, that the
request to rezone a portion of the property at 560 Mart St. from Waterfront
Marine to Waterfront Industrial PUD be approved.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair
Nays: None
MOTION PASSES
C. Fisherman's Landing/Third Street Wharf Lake Front
Development Manager's Office
For nearly a year, and at the direction of the City Commission, the City
Manager and legal counsel have been working with Mart Dock on the
potential transition of Fisherman’s Landing Campground into a commercial
port.
In September, staff presented a draft of the development agreement. At that
time, several exhibits were still incomplete. Following feedback from the
Commission and the public, the development agreement, including exhibits,
has been finalized.
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Key points include:
• The City would lease Fisherman’s Landing to Mart Dock for 50 years, with
an optional 40-year renewal. Mart Dock would also have the option to
purchase the site after 2028. The lease would begin March 15, 2026.
• The campground will remain in operation until the City closes
on/acquires the conversion property (Verplank acreage).
• The City would purchase 2.5 acres of the Third Street Wharf property,
using a portion of the $2.8 million state appropriation to cover costs.
• The City would agree to riparian restrictions at Third Street Wharf to
safeguard docking (cruise ships) and launching activities.
• The Mart Dock has agreed to keep the shoreline on the north side of the
campground "soft" up to 25 feet beyond the ordinary highwater mark.
There will not be public access in this area.
• The development agreement notes that Mart Dock would be responsible
for the cost of moving the picnic pavilion and fishing dock at Fisherman's
Landing.
• There will be an 18-month due diligence period regarding the Verplank
Property
• Revenue sharing is outlined in the agreement.
Funding:
• The City will sponsor or co-sponsor with Mart Dock grants for port
infrastructure at Fisherman’s Landing (most likely Port Infrastructure
Development grants).
• The City would be compensated for the Fisherman’s Landing property in
a pre-paid lease (same value as a property sale) and use those funds to
acquire the Verplank property (with additional funding required to
complete the purchase, the funding gap will be in the six-figure range).
• The cost to rehab Verplank is still unknown. Staff is working with the Great
Lakes and St. Lawrence Seaway Cities Initiative to develop plans for the
next steps in the redevelopment of the Verplank properties into a park.
(Including a list of unknowns, possible avenues forward for grants, and
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planning options.) We anticipate securing grants for the river estuary
restoration.
• The $2.8 million state enhancement grant (of which the City already
holds one-quarter) would support:
o Acquisition and improvements to the City-acquired Third Street
property
o Sewer relocation, historic vessel preservation
• If Mart Dock/the City secures a Port Infrastructure Development Grant
and operations begin at Fisherman’s Landing, Mart Dock must cease
operations at Mart Dock Proper within five years (extendable one year at
a time at the City Manager’s discretion).
• A deed restriction would be placed on the Mart Dock Parcel, requiring
commission approval to amend or remove. This restriction runs with the
land and applies to current and future owners.
o Prohibited uses: All port operations, including cargo handling,
container storage, freight loading/unloading, and related logistics
o Permitted uses:
▪ Cruise ship operations and related activities
▪ Boat storage, service, and repair (current allowable use
under zoning via Special Land Use)
▪ Marinas (by-right use under current zoning)
• Mart Dock Proper would be rezoned to Waterfront Industrial PUD (zoning
ordinance), with final approval to occur alongside the agreement. (2 (e))
• Fisherman’s Landing would also be rezoned to Waterfront Industrial PUD
at the same time. This is not explicitly stated in the agreement because,
as property owner, the City has sole authority to initiate the rezoning.
This summary highlights the main elements of the agreement. Staff will present
additional details at Tuesday night’s Commission Meeting focusing on what's
changed since the last presentation, providing context and connecting this
draft to the earlier public engagement presentations.
Public Engagement:
In Person:
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• Muskegon Lake Watershed Partnership, January 7, 2025
• Muskegon Rotary, West Michigan Port Operators, January 9, 2025
(available on YouTube for viewing)
• Parks & Recreation Advisory Committee, February 15, 2025
• Public Information Session #1 - Sim Ray Community Building at Smith
Ryerson, January 27, 2025
• Public Information Session #2 - Public Works Building, February 4, 2025
• Neighborhood Associations of Muskegon, February 5, 2025
• Public Information Session #3 - The HUB, February 17, 2025
• Muskegon Chamber Governmental Affairs Meeting, March 4, 2025
• Commission Worksession, September 8, 2025
• Public Q&A Session at Muskegon High School, October 21, 2025
(available online for viewing)
• Muskegon Rotary Presentation, November 6, 2026 (available on YouTube
for viewing)
• Commission Meeting, November 25, 2025
(more than 20 hours of large-scale public engagement. This does not include
Neighborhood Association Meetings attended where Ports & Parks have been
a topic of discussion.)
Digital:
• Social media Q&A (taken from engagement questions/online/written
feedback)
• Connect Muskegon Page
o All documents available on Connect Muskegon
o The public can provide feedback
o The public can sign up for updates when documents
change/information changes on the page (641 subscribers to Ports
& Parks (86 only for Ports & Parks, 555 for all city projects on
Connect Muskegon))
o Summaries of public meetings can be viewed
o Copies of feedback received can be viewed
o Digital presentations (same presentations as given in the public
information sessions)
Print:
• Covered in our Fall/Winter 2025 newsletter
STAFF RECOMMENDATION: To approve the development agreement between
West Michigan Dock and the City of Muskegon as presented.
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City Manager Jonathan Seyferth explained a few changes to the agreement
and answered questions.
Motion by Commissioner Keener, second by Commissioner Kilgo, to approve
the development agreement between West Michigan Dock and the City of
Muskegon as presented.
ROLL VOTE: Ayes: Kilgo, Gorman, St.Clair, and Johnson
Nays: Keener, and Kochin
MOTION PASSES
ANY OTHER BUSINESS
Commissioner Kilgo asked that the community and non-profits continue
coming together to help our youth and those who have less.
Commissioner Kochin agreed with Commissioner Kilgo.
Mayor Johnson and Commission wished everyone happy holidays.
Attorney John Schrier thanked the Commission for their kindness earlier tonight,
it was deeply appreciated.
GENERAL PUBLIC COMMENT
Public comments received.
ADJOURNMENT
The City Commission meeting adjourned at 9:45 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: BS&A Online Payments
Submitted by: Sarah Wilson, City Treasurer Department: Treasury
Brief Summary:
We are currently using Point & Pay, a third party processor, for online payments of tax and utility bills,
as well as for credit card payments made at the counter. In 2024, BS&A launched their own online
payment platform, BS&A Payments. After investigating the BS&A Payments option, we feel it is a
better value and option for our municipality as a payment processor. We are recommending
switching our payment processor to the BS&A Payments platform.
Detailed Summary & Background:
We have recently encountered some issues and limitations with our current payment processing
system. Staff began investigating BS&A Payments as an alternative payment processor, to see if we
could both reduce the issues that have occurred as well modernize the system that is available to our
residents. After spending time meeting with BS&A Payments' team, as well as researching their
capabilities and talking with various users of the system, we determined this system to be superior to
what we are currently using.
Some of the features we would gain with the BS&A Payments system include:
• An updated and modernized, easy-to-use customer interface for online payments
• Increased safety features, such as ACH validation prior to payment processing, and the ability
to read "chip" enabled credit cards
• The ability to accept mobile wallet payments, such as Google or Apple Pay
• Text to pay capabilities
• Auto-pay and scheduled payment capabilities
One important note regarding this system is that the fees customers pay to use the system would
increase very slightly. The current fee for using a credit card is 2.8%. With the BS&A payments system,
the fee would increase to 2.8% plus $0.50. The current fee for paying online via ACH (or e-check) is
$0.85. The fee under the new system would be $1.25. Although the fees are slightly higher, we
believe the added value and convenience for the residents makes the switch worthwhile. It is also
important to note that customers are not required to use these payment methods. We will still offer
all of our other options that are free of charge, such as payment by check, cash, mail, etc. This
system is strictly offered as a convenience for those who choose to use it.
The only cost to the municipality is the cost of the terminals that would be located at the counters.
The cost for each terminal is $350, and we would need 15 terminals. There are no other fees to the
municipality for using the BS&A Payments system.
Goal/Action Item:
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2027 Goal 4: Financial Infrastructure
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
$5,250.00
Fund(s) or Account(s): Budget Amendment Needed:
Various No
Recommended Motion:
I move to approve changing the City's payment processor to BS&A Payments and authorize the
Treasurer to sign the attached addendum.
Approvals: Name the Policy/Ordinance Followed:
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BS&A Payments
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BS&A Payments: The What and How
Challenges Solutions
Confusing and unpredictable fee schedule Straightforward, All-Inclusive Pricing Model
Lengthy onboarding and implementation process We have taken customers live on BS&A
Payments in as little as 48 hours
Inefficient and disjointed customer support One company, one team. Supporting you from
implementation to go-live, and beyond
Full control over the end-to-end solution, enabling
Unresponsive to feedback our teams to quickly incorporate customer feedback
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BS&A Payments: Why?
Customer Streamlined
Experience Integration
Processing
We pride ourselves on Real-time transaction Our payment solution
our unprecedented processing and posting, integrates seamlessly
customer service, integrated with the BS&A with cash-receiving
providing a singular Online Suite of Products, functions, simplifying
contact point for eliminate manual data entry financial management
payment support. and the need for flat for municipalities.
file/batch file transaction
imports.
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Reimagining the User Experience
BS&A Online Refresh
Modern User Interface Mobile Responsive User Experience
4th user interface for A critical feature for Personal, intuitive,
BS&A Online – first meeting users where and efficient
since 2011 they are on the
devices they use
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User Research
Leveraging user insights to create a better experience
Residents Professional Users Municipal Users
Residents visit their Title Companies, Real Understanding of
municipality's website Estate Agents, Law resident experience,
seeking information or to Firms, Contractor users focused on providing
pay a bill have different needs than efficiency and ability to
residents reconcile payments
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Turning what was once a chore into a seamless journey,
BS&A Payments was built with residents in mind.
Ease of Use
The user-friendly, mobile responsive, and accessible interface, all
under one "roof" ensures all residents can make payments easily
from anywhere.
Autopay Capability
Allows residents to configure ongoing automatic payments,
ensuring they never miss a due date, and reducing late payments
to the municipality
Automatic Card Updates
Embedded Card Account Updater capabilities maintain up-to-date
credit and debit card information when resident cards expire or are
replaced, reducing payment disruption.
Security, Compliance and Stability
Processing in a PCI Level 1 compliant environment with 99.999%
uptime ensures the security of resident, municipality, and payment
transaction data.
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The Solution
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Where We Are Today
• Desktop-first design
• Limited mobile usability
• More manual steps for
residents
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Where We’re Going
• Modern, Intuitive User
Interface
• Mobile-responsive
design
• Single Login for BS&A
Online
• Fully Integrated With
BS&A Modules
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Streamlined & Reliable
Checkout Experience
• Flexible, Resident-Friendly
Ways to Pay
• Increased Reliability & Fewer
Failed Payments
• Seamless Autopay
Management
• Secure, Consistent Experience
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Operational Efficiencies & Staff Benefits
Less Manual Work Fewer Resident Centralized
• Real-time Issues Reporting
posting • Fewer failed • Unified reporting
• Automated payments across modules
reconciliation • More self-service • Quick access to
options transaction
• Reduces
information
repetitive tasks • Clearer checkout
process • Clear deposit
sequencing
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BS&A Payments
Where We Are Today
A Year of Progress and Partnership
Since our initial beta launch in May 2024:
• 513 municipalities have signed on to BS&A Payments
• 406 are now live and actively processing payments
• 1.2+ million transactions have been successfully
completed
• $288+ million in payments have been processed on
the platform
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What Does This Mean for
3rd Party Integrations?
• BS&A Payments is our ongoing focus for the best integrated
payments experience purpose-built for BS&A customers and
their residents.
• What does this mean for customers currently using third-party
payment providers?
• Is BS&A still allowing choice, or are municipalities required to
use BS&A's payment solution?
• I've heard integration fees might be coming. What does that
mean for my municipality?
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Thank You
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BS&A Payments
Streamlined payments for
municipalities and their residents
For municipalities that invoice residents for taxes, utilities,
and other civic fees, BS&A Payments offers a more efficient
way to accept payments electronically, online, and over the
counter. Native to BS&A’s core software and online resident-
facing platform, BS&A Payments improves workflows and
reconciliation processes for staff and expands value for
residents.
Real-time Payment Processing Real-time transaction processing and posting
Designed for taxes, utilities, and other civic fees. Seamless ERP integration eliminates
manual data entry and file imports, minimizing manual processes and potential
Specifically for How for error.
Municipalities
Automated Reconciliation Streamlined bank reconciliation creates time
Operate. savings, allowing municipal staff to focus on higher value initiatives.
Centralized Transaction Data All electronic payments data is accessible
directly from BS&A’s core platform, providing transaction level detail in a
unified interface.
Modernize Your Payments Acceptance Position your municipality as tech-
enabled and forward-thinking by offering residents the most modern
payment methods, both in person and online.
All-Inclusive Pricing All-inclusive, flat-rate pricing eliminates hidden or
unexpected fees and simplifies the budget forecasting process. No need to
worry about fees for setup, monthly minimums, statements, recurring
payments, PCI compliance, chargebacks, or batches.
Ready to take the next step? (855) 272-7638 | paymentsinfo@bsasoftware.com
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Focusing on the
Resident Experience.
Turning what was once a chore into a seamless
journey, BS&A Payments was built with
residents in mind.
Single Login for BS&A Online
A single user account streamlines access to electronic payments
and other citizen engagement tools, all under one roof.
Ease of Use
The user-friendly, mobile responsive, and accessible interface
ensures all residents can make payments easily from anywhere. Comprehensive Payment Options
BS&A Payments accepts:
Autopay Capability
Allows residents to configure ongoing automatic payments,
ensuring they never miss a due date, and reducing late payments
to the municipality.
Security and Compliance.
Processing in a PCI Level 1 compliant environment ensures the
security of resident, municipality, and payment transaction data.
Automatic Card Updates
Embedded Card Account Updater capabilities maintain up-
to-date credit and debit card information when resident cards
expire or are replaced, reducing payment disruption. Extensive Payment Channels
Ability to pay invoices:
See BS&A Payments in Action
See for yourself how BS&A Payments streamlines
payments for municipalities and their residents.
https://www.bsasoftware.com/bsa-payments
Ready to take the next step? (855) 272-7638 | paymentsinfo@bsasoftware.com
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BS&A Payments
Customer FAQs
1. Why is BS&A launching its own payments platform?
Over the years, we’ve consistently heard from customers about the frustrations of using separate, add-on
payment solutions. These setups often resulted in a fragmented experience for residents, who had to
manage multiple accounts and switch between the BS&A Online resident portal and an external payment
portal, sometimes involving multiple browser windows, log-ins, and redirects. Municipalities have also faced
challenges, such as reconciliation issues and the need to coordinate with two separate companies for
implementation and support, making it difficult to address payment-related concerns quickly and efficiently.
With our all-new BS&A Payments solution, these challenges are eliminated. You work with directly with the
team at BS&A from sales to onboarding, implementation through ongoing support, and because we manage
the solution end-to-end, we’re committed to continuously improving it based on customer feedback to
ensure it meets the unique needs of our municipal customers.
Built specifically for municipalities, BS&A Payments offers robust reconciliation, ease of use, and allows you
to work exclusively with our top-tier support team. By managing payments directly, BS&A can help
streamline your processes, reduce third-party dependencies, and provide real-time integration with your
ERP system, ultimately enhancing productivity for your staff and convenience for residents.
2. What does this mean for customers currently using third-party payment providers?
For customers with third-party integrated payments, BS&A Payments offers a fully integrated, native option
built exclusively for BS&A customers and their residents, with BS&A handling all aspects of implementation
and support. While there’s currently no end-of-life timeline for third-party integrations or a requirement to
transition, our focus going forward is on enhancing and investing in our own payment solution to deliver a
continuously improving experience.
We also encourage customers to review any exclusivity or long-term renewal clauses with third-party
providers, as these terms could limit your flexibility to take advantage of BS&A Payments’ benefits when
you’re ready. Our team is here to assist in making the transition as smooth as possible, and we’re available
to answer any questions about the unique advantages of BS&A Payments.
3. Why is BS&A’s fee schedule structured differently than typical payment processors?
BS&A Payments uses an all-inclusive pricing model, simplifying your budgeting by eliminating unexpected
fees. This flat-rate approach covers processing, PCI compliance, support, chargebacks, ACH returns, and
other fees that are typically additional with third-party providers. With BS&A, what you see is truly what
you get, making it easier for municipalities to plan and control costs without surprise expenses.
Ready to take the next step? (855) 272-7638 | paymentsinfo@bsasoftware.com
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BS&A Payments
Customer FAQs
4. How did BS&A approach building the payments product, and what’s next?
BS&A Payments was designed specifically with municipalities and their residents in mind. We gathered
direct feedback from customers to understand common themes, frustrations, and gaps in third-party
solutions, creating a platform that addresses the real needs of municipalities. BS&A Payments includes
integrated real-time transaction processing, centralized data access, and a user-friendly resident interface.
We continue to invest in expanding support for additional payment channels and enhancing functionality.
5. Is BS&A still allowing choice, or are municipalities required to use BS&A’s payment
solution?
Our primary goal is to offer a streamlined, secure, and effective payments solution that integrates
seamlessly with BS&A ERP software. While BS&A Payments is optimized for our ERP, our merchant
processing agreement is non-exclusive, providing flexibility to work concurrently with other processors if
desired. BS&A respects each municipality’s choice and is committed to supporting informed decision-
making.
6. What happens to resident payment information during the transition?
Transitioning from third-party processors to BS&A Payments involves the transfer of sensitive payment
data. While we aim to minimize disruptions, some residents may need to re-register payment methods due
to data transfer policies set by existing providers. Our support team is ready to assist municipalities in this
transition to ensure residents experience minimal impact and can continue making payments seamlessly
7. What payment methods and channels does BS&A Payments support?
BS&A Payments provides multiple channels tailored for convenience and security:
ACH/Electronic Check: Includes verification tools like Financial Connections and GIACT to ensure
account validity and reduce the risk of failed payments. Autopayment options are also available,
especially beneficial for utility billing.
Credit Card: Online and in-person with fully integrated, EMV-compliant point-of-sale terminals,
providing municipalities with the only seamlessly integrated solution for secure, in-person transactions.
Digital Wallet: Supports Apple Pay and Google Wallet online and in-person.
Text-2-Pay: Simple text authorizations for registered users.
Interactive Voice Response (IVR): Automated payments over the phone in a secure PCI-compliant
environment.
Our roadmap includes additional payment channels to meet evolving needs, and we’ll continue updating our
product offering based on customer feedback.
Ready to take the next step? (855) 272-7638 | paymentsinfo@bsasoftware.com
Page 239 of 292
BS&A Payments
Customer FAQs
8. Are there any channels BS&A Payments doesn’t currently support?
BS&A Payments currently does not support bank direct payments or kiosk payments. If you rely on these
channels, please reach out—we’d love to discuss your needs. These options are under consideration, and a
phased approach may be possible depending on demand and customer requirements.
9. How does BS&A Payments improve reconciliation and reporting?
BS&A Payments consolidates all transaction data within your ERP, streamlining the reconciliation process.
This tight integration provides staff with detailed transaction data and automated bank reconciliation,
reducing manual entries, minimizing errors, and saving staff time.
10. How does BS&A support municipalities with onboarding and training?
Addressing customer feedback around lengthy and complex account set up, our onboarding process is
designed to be smooth, supportive, and fast. With BS&A Payments, your municipality can be up and
running in a matter of days. We provide comprehensive training, documentation, and ongoing support to
ensure your team feels confident and prepared to use the platform effectively. Additionally, our team is
available to troubleshoot any issues and provide support to your residents if needed, offering a seamless
transition from setup through to ongoing operations.
Get in Touch to Find Out More.
(855) 272-7638
paymentsinfo@bsasoftware.com
Ready to take the next step? (855) 272-7638 | paymentsinfo@bsasoftware.com
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Integrated Payments Addendum
This Addendum (“Addendum”) supplements the Customer Agreement entered into by and between
BS&A Software, LLC (“BS&A”) and the (“Customer”) together
with the BS&A Customer Terms and Conditions (collectively, the “Agreement”), effective on the date of
the Customer signature.
Payment processing services accessible through an integration with BS&A’s platform are provided by
BS&A’s designated payment processor, as BS&A may designated from time to time (“Processor”). As of
the effective date of this Addendum, the Processor is Stripe, Inc. (“Stripe”). This Addendum will apply if
Customer sets up an account with the Processor (with Stripe as processor, such account is referred to
herein as the “Stripe Connected Account”), to receive payment processing services from Processor
(“Payment Processing Services”) through such integration. Capitalized terms used but not defined here
will have the meanings given to them in the Agreement or in the Stripe Agreements (defined below).
1. Payment Processing Services
1.1 Processor Agreements. As of the effective date of this Addendum, use of the Payment
Processing Services is subject to the Stripe Connected Account Agreement, the Stripe Privacy Policy, and
other terms and conditions of Stripe, as each may be updated or modified by Stripe from time to time
(collectively, the “Stripe Agreements”). Customer may not use any Payment Processing Services until
Customer agrees to the Stripe Agreements, and by agreeing to this Addendum, Customer expressly
(a) accepts and agrees to the Stripe Agreements, and (b) authorizes BS&A to capture Customer’s
electronic or digital acceptance of the Stripe Agreement and provide proof of such acceptance to Stripe
as may be requested by Stripe. Customer understands that the Stripe Agreements are solely between
Customer and Stripe, and the Payment Processing Services are provided solely by Stripe. BS&A is not a
party to the Stripe Agreements, has no control over the Payment Processing Services and the Stripe
Agreements, and will have no liability under the Stripe Agreements or in any way relating to the
Payment Processing Services. Customer is responsible for checking for applicable updates to the Stripe
Agreements from time to time, and any use by Customer of the Payment Processing Services following a
change to the Stripe Agreements shall constitute acceptance of such change.
1.2 Customer Information and onboarding. Customer will follow the onboarding procedures and
policies provided by BS&A and Stripe (as may be amended from time to time), and Customer will
provide all requested information. All information provided by Customer to BS&A must be truthful and
accurate. Customer acknowledges that Processor has the ultimate decision whether to approve
Customer for the Payment Processing Services.
1.3 Transaction Processing and Settlement. Transactions are processed by Processor, not BS&A.
Stripe (or its partner banks) will settle Transaction proceeds to Customer’s designated bank account in
accordance with the Stripe Agreements. Customer acknowledges and agrees that its processed
transactions may be deposited into to a pooled account held for the benefit of Customer and other
customers of BS&A held at any financial institution so that such funds may be combined and aggregated
with other funds that are ultimately settled to Customer by such financial institution. Customer
understands and agrees that BS&A does not process, receive, or hold Customer funds at any time and
that BS&A is not a bank, money transmitter, or other money services business (as such terms are
defined by the Bank Secrecy Act or any state law). To the extent BS&A is deemed to hold or receive
funds (constructively or otherwise) of any customer of Customer at any point in time, Customer hereby
irrevocably appoints BS&A as its non-fiduciary agent for the limited purpose of collecting, receiving,
holding, and settling funds from Customer’s customer (the cardholder) on Customer’s behalf. In such
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event, such funds shall be deemed received by Customer upon receipt by BS&A and shall satisfy the
cardholder’s obligation to Customer in connection with the transaction for the goods or services sold by
Customer. If BS&A fails to remit such funds to Customer, Customer’s sole recourse for such event is
solely against BS&A and not against the cardholder or the cardholder’s financial source.
1.4 Data Usage and Sharing. Customer authorizes BS&A to (a) access and receive data relating to
Customer’s Stripe Connected Account (as such term is defined in the Stripe Agreements), including
transaction and usage data and other data about the Stripe Connected Account; (b) share data regarding
the Stripe Connected Account, related activity and other Customer data with Stripe in connection with
the Payment Processing Services; and (c) issue instructions to Stripe regarding Transactions and funds
processed by Stripe. Customer agrees to complete and submit any additional authorization forms or
other such documentation as requested by BS&A or Stripe.
2. Payment Terms
2.1 Fees. The fees for the Payment Processing Services will be as set forth in Schedule A of this
Addendum and will be automatically debited by BS&A via ACH from the depository account designated
by Customer that is on file with BS&A (“Customer Account”). Customer hereby authorizes BS&A,
Processor, their financial institutions and any of their assignees to collect amounts owed under this
Addendum (including, but not limited to, the fees for the Payment Processing Services set forth on
Schedule A and any liabilities arising under this Addendum) by debiting funds from the Customer
Account (“ACH Debit Authorization”). All payments are non-refundable. If Customer fails to make any
payment when due (or any ACH Debit of the Customer Account is returned or rejected for any reason),
late charges will accrue as permitted pursuant to Section 7.1 of the Agreement. For clarity, any fees or
payment terms that may be posted on Stripe’s website for Stripe’s direct customers are not applicable.
All fees are exclusive of any applicable taxes, unless otherwise provided. Customer agrees that all ACH
transactions authorized pursuant to this authorization comply with all applicable laws and with the
Network Rules (including the Nacha Operating Rules). Notwithstanding anything to the contrary in the
Agreement, fees for the Payment Processing Services can be amended upon thirty days notice to
Customer.
2.2 Disputes. If Customer believes that there is an error in any statement provided by BS&A or any
information reported by BS&A regarding a Transaction, or any error made in the amount of a payment
or settlement, Customer must notify BS&A within thirty (30) days of Customer’s receipt of the statement
or payment containing the error or it will waive such claim.
2.3 Tax Reporting. BS&A may send documents to Customer and the Internal Revenue Service (IRS)
or other tax authority for Transactions processed using the Payment Processing Services. BS&A may
have tax reporting responsibilities in connection with the Payment Processing Services such as an
Internal Revenue Service report on Form 1099-K (which reports Customer’s gross transaction amounts
each calendar year to the IRS), or state or other taxing authority requirements. Customer acknowledges
that BS&A or Stripe (as determined in their sole discretion) will report the total amount of transactions
received by Customer in connection with the Payment Processing Services each calendar year as
required by the taxing authorities. Customer will cooperate with BS&A and Stripe in providing accurate
and complete tax reporting information, including any other information that may be required by the
taxing authorities to fulfil tax reporting described herein. Customer represents and warrants that all
information that it submits for tax reporting purposes is complete and accurate to the best of its
knowledge, and that BS&A and Stripe may rely on all such information submitted by Customer.
Customer agrees that neither Stripe nor BS&A will be liable for any penalty or other damages stemming
from any 1099-K form that is issued incorrectly if it comports with the information provided by
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Customer, and neither Stripe nor BS&A will have any obligation to verify the legal name or tax ID
number for reporting purposes. Customer understands and agrees that BS&A and Stripe may submit tax
reporting information exactly as provided by Customer. Notwithstanding the foregoing, BS&A or Stripe
may in their sole discretion investigate or validate any tax reporting information or other information
submitted by Customer.
2.4 Electronic Delivery of Tax Documents. In connection with the tax reporting activities described
above, Customer may elect to receive electronic delivery of the referenced tax-related documents from
BS&A or Stripe, including through BS&A’s platform or another online portal whereby Customer can
access and download the applicable statements. If Customer elects to receive tax documents
electronically, it will provide such consent by clicking an “I Accept” or similar button or checking a box
captioned with acceptance and consent language (“Tax E-Delivery Consent”). The Tax E-Delivery
Consent will remain in effect until withdrawn by Customer. The Tax E-Delivery Consent may be printed
or downloaded. If Customer does not specifically consent to the electronic delivery of tax-related
documents, Customer will receive paper copies of all required tax-related documents, including Form
1099-K. BS&A or Stripe will notify Customer once the applicable tax forms become available via the
email address BS&A has on file for Customer.
3. Compliance
3.1 Laws and Rules. Customer agrees to comply at all times with all applicable laws and regulations
as well as the rules and regulations of all applicable payment networks (“Network Rules”), including
industry standards such as the Payment Card Industry Data Security Standards (“PCI-DSS”). Additional
data protection standards and policies which Customer must comply with are set forth in the Stripe
Agreements. Furthermore, Customer acknowledges and agrees that it is fully responsible for all acts and
omissions of its employees, contractors, and agents and will ensure their compliance with all laws and
Network Rules as well as Customer’s other obligations under this Addendum and the Stripe Agreements.
3.2 Customer’s Business. Customer understands that any transactions involving Customer’s goods
or services which are processed through the Payment Processing Services pursuant to this Addendum
(“Transactions”) are between Customer and its customer (the cardholder), and any issues relating to a
Transaction are solely between Customer and the cardholder. Customer is solely responsible for all
liabilities associated with Customer’s payment processing activity and use of the Payment Processing
Services, including without limitation with respect to chargebacks, refunds, identity theft, fraud and any
assessments or fees imposed by Stripe, a sponsor bank, the card networks or any third party. Customer
is responsible for determining what, if any, taxes apply to the goods and services Customer provides to
its cardholders and the payments Customer makes or receives, and it is Customer’s responsibility to
collect, report and remit the correct tax to the appropriate tax authority. Customer will comply with any
and all applicable tax laws, including those in connection with Transactions.
3.3 Prohibited Activities. Customer will not use the Stripe Connected Account for any activity
prohibited by Stripe, including but not limited to those activities listed in the section of Stripe Services
Agreement titled “Services Restrictions” or those activities listed in the Stripe Restricted Businesses List.
Customer shall not use the Payment Processing Services to conduct a Restricted Business or transact
with a Restricted Business. Customer may not use the Payment Processing Services in breach of the
Connected Account Agreement or for any activity that applicable law or the Stripe Agreements prohibit.
3.4 Fraud Monitoring. BS&A and Stripe may monitor Transactions for the purpose of determining
fraudulent activity and whether Customer is in good standing. Such monitoring if conducted, will be for
the benefit of BS&A and/or Stripe only. BS&A does not have any obligation to monitor Transactions on
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Customer’s behalf. Based on BS&A’s methods, which are subject to change without notice, BS&A may
decide to suspend Customer’s access to the Payment Processing Services, or in other ways limit
Customer’s privileges to the extent BS&A deems necessary or useful to prevent fraud or losses. Without
limiting the foregoing, BS&A may delay, in its sole discretion, or at the direction of Stripe sending
instructions on Customer’s behalf if BS&A reasonably believes that Customer’s instructions may involve
fraud or misconduct, or violate applicable law, rule, regulation, order, this Addendum, or other
applicable BS&A or Stripe policies, as determined by BS&A or Stripe in their sole and absolute discretion.
3.5 Cardholder Fee Programs. If Customer elects to impose a fee on cardholders with respect to
Transactions (including a surcharge for credit cards, a convenience fee, service fee or other similar type
of fee) or implement a discount based on the type of payment method used for a Transaction (including
cash, check, or ACH) (collectively, “Cardholder Fee Program”), Customer must first seek approval from
BS&A. Customer is solely responsible for its compliance with all applicable Network Rules and all present
and future federal and state laws and regulations relating to any such Cardholder Fee Program and any
required consumer disclosures related thereto. Although BS&A may, in its discretion, assist Customer
with disclosures and practices relating to such Cardholder Fee Programs, BS&A’s provision or approval of
any materials or practices shall not be deemed a confirmation that such materials or practices comply
with the Network Rules or applicable law and shall not in any way relieve Customer from its
responsibility to ensure that all program materials and practices comply with the Network Rules and
applicable law. Customer must provide BS&A with at least at thirty (30) days prior written notice before
implementing (or announcing publicly that it intends to implement) any Cardholder Fee Program that
would be considered a surcharge program under the Network Rules.
4. Chargebacks
4.1 Chargebacks. If BS&A determines in its sole discretion that Customer is incurring excessive
chargebacks, BS&A may establish controls or conditions governing Customer’s use of the Payment
Processing Services, including without limitation, by (a) establishing new fees, (b) instructing Stripe to
require a reserve, (c) instruct Stripe to delay payouts, and/or (d) terminating this Addendum and access
to the Payment Processing Services. Notwithstanding anything to the contrary herein, for any
Transaction that results in a chargeback, BS&A may direct the withholding of the chargeback amount
and any associated fees. Customer authorizes BS&A to deduct or debit the amount of any chargeback
and any associated fees, fines, or penalties assessed by a third party, from Customer’s Account or offset
from any amounts otherwise due to Customer. Further, if BS&A reasonably believes that a chargeback is
likely with respect to any Transaction, BS&A may instruct Stripe to withhold the amount of the potential
chargeback from payments otherwise due to Customer until such time that: (a) a chargeback is
assessed, in which case BS&A will retain the funds; (b) the period of time under applicable law or Rule by
which the cardholder may dispute the Transaction has expired; or (c) BS&A determines that a
chargeback on the Transaction will not occur, in which case BS&A will instruct the release of the
withheld funds to Customer. If BS&A is unable to recover funds related to a chargeback for which
Customer is liable, BS&A may set off or debit Customer’s Account for the full amount of the applicable
chargeback, or, if BS&A is unable to do so, Customer shall pay BS&A the amount of such chargeback and
any associated fees, fines or penalties immediately upon demand. Customer will pay all costs and
expenses, including without limitation attorneys’ fees, other legal expenses, and handling fees incurred
by or on behalf of BS&A in connection with the collection of all chargebacks. This section will survive
termination of this Addendum. Additional chargeback terms and requirements are set forth in the Stripe
Agreements.
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4.2 Investigations. BS&A is not obligated to intervene in any dispute arising between Customer and
cardholders. Notwithstanding anything to the contrary herein, if BS&A needs to conduct an investigation
or resolve any pending dispute related to chargebacks or Transactions, Customer will assist BS&A when
requested, at Customer’s expense, to investigate such Transactions. Customer will timely submit all
applicable information, documentation, or evidence related to such chargeback to BS&A, within the
timeframe instructed by BS&A, necessary for BS&A to meet card network timelines for submitting
evidence and responding to a chargeback. Customer authorizes BS&A to share information about a
chargeback with the cardholder, the cardholder’s financial institution and Customer’s financial
institution in order to investigate or mediate a chargeback. BS&A will request necessary information
from Customer to contest the chargeback. If a chargeback dispute is not resolved in Customer’s favor by
the card network or issuing bank or Customer chooses not to contest the chargeback, BS&A may recover
the chargeback amount and any associated fees. Customer acknowledges that its failure to assist BS&A
in a timely manner when investigating a Transaction, including providing necessary documentation
within the time period specified in BS&A’s request, may result in an irreversible chargeback. BS&A will
charge a fee as set forth in the applicable price schedule for mediating or investigating chargeback
disputes, in addition to any other chargeback fees set forth in this Addendum or the Agreement, if
applicable. BS&A reserves the right to change such fee at any time. If BS&A reasonably suspects that the
Customer’s access to the BS&A platform or Payment Processing Services has been used for an
unauthorized, illegal, or criminal purpose, Customer gives BS&A express authorization to (but
understands that BS&A is not obligated to) share information about Customer and any Transactions with
law enforcement.
5. Liability
5.1 Indemnification.
5.1.1 In addition to the indemnification obligations under the Agreement, Customer will
indemnify and hold harmless BS&A and its officers, affiliates, and representatives from and
against any and all losses, damages, claims, assessments, chargebacks, fees, and other
amounts incurred arising out of or in any way related to: (a) Customer’s breach of any of its
representations, warranties or covenants in this Addendum; (b) the Stripe Agreements or
Customer’s use of the Payment Processing Services, including all activity on Customer’s
Stripe account; (c) Customer’s violation or non-compliance with any applicable law, rule,
regulation, order, or Network Rules (including non-compliance of PCI-DSS); (d) all Merchant
Losses (as defined in the Stripe Agreements); (e) Customer’s implementation of a
Cardholder Fee Program; and (f) Customer’s gross negligence or willful misconduct.
5.1.2 In addition to the indemnification obligations under the Agreement, BS&A will indemnify
and hold harmless Customer and its officers, affiliates, and representatives from and against
any and all losses, damages, claims, and other amounts incurred resulting from third party
claims to the extent directly and solely arising out of: (a) BS&A’s breach of any of its
representations, warranties or covenants in this Addendum; (b) BS&A’s violation or non-
compliance with any applicable law, rule, regulation, or order; and (c) BS&A’s gross
negligence or willful misconduct.
5.2 Limitation of Liability. TO THE FULLEST EXTENT PERMITTED BY LAW, IN NO EVENT SHALL BS&A,
ITS OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, OR AGENTS, BE LIABLE TO CUSTOMER OR ANY
OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL OR EXEMPLARY
DAMAGES, WHETHER BASED ON WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE), OR ANY
OTHER LEGAL THEORY, AND WHETHER OR NOT BS&A IS ADVISED OF THE POSSIBILITY OF SUCH
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DAMAGES. EXCEPT FOR BS&A’S INDEMNITY OBLIGATIONS SET FORTH IN SECTION 5.1.2, TO THE FULLEST
EXTENT PERMITTED BY LAW, IN NO EVENT WILL BS&A’S TOTAL CUMULATIVE LIABILITY ARISING OUT OF
OR RELATED TO THIS ADDENDUM EXCEED IN THE AGGREGATE THE TOTAL FEES CUSTOMER PAID TO
BS&A UNDER THIS ADDENDUM IN THE SIX (6) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING
RISE TO THE LIABILITY. THE EXISTENCE OF MULTIPLE CLAIMS WILL NOT ENLARGE THIS LIMIT. BS&A’S
LIABILITY IN CONNECTION WITH ITS INDEMNITY OBLIGATIONS SET FORTH IN SECTION 5.1.2, SHALL NOT
EXCEED IN THE AGGREGATE THE TOTAL FEES CUSTOMER PAID TO BS&A UNDER THIS ADDENDUM IN
THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE LIABILITY. FOR
THE AVOIDANCE OF DOUBT, CUSTOMER AGREES AND ACKNOWLEDGES THAT ANY ASSESSMENT, FINE,
PENALTY, FEE, OR OTHERWISE IMPOSED BY STRIPE, A BANK, A CARD NETWORK OR A GOVERNEMNT
AGENCY OR REGULATOR WILL BE DEEMED TO BE A DIRECT DAMAGE AND NOT INDIRECT,
CONSEQUENTIAL, OR INCIDENTIAL.
5.3 Force Majeure. BS&A is not responsible for any delay or failure in performing its obligations
under this Addendum, in whole or in part, for any cause or circumstance outside its reasonable control,
including, without limitation: fires, floods, storms, earthquakes, civil disturbances, disruption of
telecommunications, pandemics, transportation, utilities, services or supplies, governmental action,
computer viruses, corruption of data, failures of Processor or other third party provider, DDoS or other
computer attacks, incompatible or defective equipment, software, or services, or otherwise.
6. Term and Termination
6.1 Term. This Addendum will be effective on the date that BS&A approves Customer for the
Payment Processing Services and will continue for one (1) year (“Initial Term”) unless earlier terminated
in accordance with this section. This Addendum will automatically renew for consecutive one (1)-year
renewal terms (each a “Renewal Term” and together with the Initial Term, the “Term”) unless either
party gives the other party written notice of non-renewal no less than sixty (60) days before the end of
the then-current Term.
6.2 Termination. This Addendum will automatically terminate upon termination of the Agreement.
6.3 Termination by BS&A. In addition to the termination rights set forth under the Agreement,
BS&A will have the right to terminate this Addendum immediately, with or without notice, for: (a)
Customer breaches any provision of this Addendum or any Stripe Agreements; (b) Customer or its
employees and agents use the Payment Processing Services in a manner inconsistent with the intended
purpose; (c) Customer or its employees and agents violate any applicable laws or Network Rules; or
(d) BS&A is required to terminate this Addendum by Stripe, government agency, payment network, or
other regulator. BS&A will not be liable to Customer or other third party for termination of the Payment
Processing Services for any reason. Upon the termination of the Stripe Agreements or the Customer’s
Stripe Connected Account for any reason, this Addendum will automatically terminate.
6.4 Effect of Termination. The termination of this Addendum will not affect any of BS&A’s rights or
Customer’s obligations arising under this Addendum. After termination of this Addendum and/or
Customer’s Stripe account, Customer shall continue to be liable for all chargebacks, refunds, fees, card
network liabilities, credits, and adjustments resulting from or relating to Transactions processed
pursuant to this Addendum. The termination of Customer’s access to Payment Processing Services will
be effective immediately. Customer authorizes BS&A to notify Stripe of any termination of this
Addendum; however, Customer is responsible to manually close its Stripe Connected Account separately
in accordance with Stripe procedures.
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7. General
7.1 Precedence. Any inconsistency, conflict, or ambiguity between these Addendum and the
Agreement will be resolved by giving precedence and effect to this Addendum, but only to the extent of
the inconsistency, conflict, or ambiguity. Other than as expressly amended by this Addendum, all other
provisions of the Agreement will remain in full force and effect.
7.2 Amendments. Except as set forth below in this section, this Addendum may only be amended
with the written consent of both parties. Notwithstanding the foregoing, BS&A reserves the right to
amend this Addendum without the consent of Customer if such amendment is required to comply with
applicable laws, Network Rules or the directives of the Processor or any payment network. BS&A will use
reasonable efforts to give Customer thirty (30) days’ prior notice of any such amendment. Additionally,
during the Term and upon at least 30 days’ prior written notice, BS&A may amend this Addendum to
pass through increases in third party costs and fees, including but not limited to fees and assessments
charged by Stripe, payment networks, or BS&A’s vendors and service providers. BS&A may amend this
Agreement other than as indicated herein, including applicable fees and rates, no less than ninety (90)
days before the end of the then-current Term.
7.3 Dispute Resolution. The dispute resolution provisions of the Agreement, including the choice of
law and venue will apply to any and all disputes or claims arising under this Addendum.
7.4 Counterparts. This Addendum may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. An electronic signature shall be accepted as an original for all purposes. This Addendum
may be executed and delivered by electronic means (including click-to-accept) and the parties agree
that such electronic execution and delivery will have the same force and effect as delivery of an original
document with original signatures, and that each party may use such electronic signatures as evidence
of the execution and delivery of this Addendum to the same extent that an original signature could be
used.
Signature: _____________________________________
Name:
Title:
Date:
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Tax E-Delivery Consent
Please read this information carefully and print or download a copy for your files.
Consent to Electronic Delivery of Tax-Related Documents
By executing the Addendum or otherwise accepting this Tax E-Delivery Consent (“Consent”), you
acknowledge that you have read and understand the terms of this Consent, and you affirmatively elect
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Schedule A – Payment Processing Services & Fees
Service Fee
Payment Processing Implementation $0
Monthly Account Fee $0
Gateway $0
PCI DSS $0
Tokenization $0
Chargeback / Dispute Management $0
Real-Time ACH Validation $0
Real-Time Transaction Fraud & Risk Monitoring $0
Text – to – Pay $0
IVR $0
Credit Card – Visa, Mastercard, Discover, American Express – Pass-Through to Payor
Online, Text, IVR, Counter Percentage Per Transaction
Utility Billing 2.80% $0.50
Tax 2.80% $0.50
Misc. 2.80% $0.50
Credit Card – Visa, Mastercard, Discover, American Express – Absorbed by Municipality
Online, Text, IVR, Counter Percentage Per Transaction
Utility Billing 2.80% $0.50
Tax 2.80% $0.50
Misc. 2.80% $0.50
ACH – Pass-Through to Payor
Transaction Amount Fee per Transaction
$0 - $1,000 + $1.25
ACH – Absorbed by Municipality
Transaction Amount Fee per Transaction
$0 - $1,000 $1.50
$1,000 - $5,000 $3.00
$5,000 + $6.00
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Item Price Quantity Total
Stripe S700 Terminal and Dock $415.00 $
Stripe S700 Terminal $350.00 $
Stripe S700 Dock $65.00 $
Stripe S700 Hub $50.00 $
Stripe S700 Case $35.00 $
Payment Type Accept Payments Using This Method
Online with BS&A Online
Text-to-Pay
IVR Phone Payments
Counter with Cash Receipting
Type Pass Through to Payor Absorbed by Municipality
Credit Card Fees - Online
Credit Card Fees - Text
Credit Card Fees - IVR
Credit Card Fees - Counter
ACH Fees - Online
ACH Fees - Text
ACH Fees - IVR
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: 2026 Wage Matrix for Non-Union Part-Time
and Limited Term Employees
Submitted by: Dwana Thompson, Employee Department: Employee Relations
Relations Director
Brief Summary:
The part-time and limited-term wage matrix is for long-term part-time positions and seasonal staffing
positions. It reflects the increase to the minimum wage that, if approved, will be retroactive to
January 1, 2026.
Detailed Summary & Background:
Goal/Action Item:
Administrative Action
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Recommending adoption of the 2026 Wage Matrix for non-union, part-time and limited-term
employees
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 252 of 292
CITY OF MUSKEGON
2026 WAGE MATRIX FOR NON-UNION PART-TIME AND LIMITED TERM EMPLOYEES
Michigan Minimum Wage is $ 13.73 as of January 1, 2026 Minor Minimum Wage is $11.67
JOB TITLE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7
GRADE 1 $ 13.00 $ 13.50 $ 14.00 $ 14.50
INTERNS AGE 16-17 (Minimum wage for Employees under Age 18)
SEASONAL YOUTH WORKERS BOYS & GIRLS CLUB & COMMUNITY ENCOMPASS
GRADE 2 $ 17.00 $ 18.00 $ 19.00 $ 20.00 $ 21.00 $ 22.00 $ 23.00
ARENA MAINTENANCE
SEASONAL LEISURE SERVICE MAINTENANCE WORKER
SEASONAL SUPERVISORS BOYS & GIRLS CLUB & COMMUNITY ENCOMPASS
GRADE 3 $ 17.00 $ 17.50 $ 18.00 $ 18.50 $ 19.00 $ 19.50 $ 20.00
ARENA CUSTODIAN
FARMERS MARKET CUSTODIAN
BUILDING FACILITY CARETAKER
FARMERS MARKET ASSISTANT I -EBT
SCHOOL CROSSING GUARD
SOCIAL DISTRICT SEASONAL WORKER
GRADE 4 $ 18.00 $ 19.00 $ 20.00 $ 21.00 $ 22.00 $ 23.00
FACILITY SUPERVISOR II
BEACH/PARK RANGERS (PUBLIC SAFETY)
SUPERVISORY INTERN (OVER 18)
GRADE 5 $ 17.00 $ 18.00 $ 19.00 $ 20.00 $ 21.00 $ 22.00
INTERNS OVER 18
ARBORIST
GRADE 6 $ 17.00 $ 17.50 $ 18.00 $ 18.50 $ 19.00 $ 19.50 $ 20.00
FACILITY SUPERVISOR I
SEASONAL BEACH EQUIPMENT OPERATOR
GRADE 7
BOARD OF CANVASSERS $25.O0 PER DIEM
BOARD OF REVIEW $13.50 per hour / 4 hour minimum
RECEIVING BOARD $75.00 per day
ELECTION WORKERS (INSPECTORS) $15.50 per hour
ELECTION WORKER CHAIRPERSON $18.50 per hour
ELECTIONWORKER CO-CHAIRPERSON $17.50 per hour
ELECTION SUPERVISOR $20.50 per hour
ELECTION SPECIALISTS $25.50 per hour
GRADE 8 $ 25.00 $ 26.00 $ 27.00 $ 28.00 $ 29.00 $ 30.00
POLICE RECRUIT
FARMERS MARKET MANAGERS ASSISTANT
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GRADE 9A $ 16.00 $ 16.80 $ 17.64 $ 18.52 $ 19.44 $ 20.42
EVENT SECURITY MANAGER
GRADE 9B $ 25.85 $ 27.14 $ 28.50 $ 29.93 $ 31.43
PART TIME POLICE OFFICER
PART TIME PROPERTY ROOM OFFICER
STEP-2 (500 hours); STEP-3 (1000 hours); STEP-4 (1500 hours); STEP-5 (2000 hours)
GRADE 9C $ 31.00 $ 32.00 $ 33.00 $ 34.00 $ 35.00
PT - FIRE INSPECTOR
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: 2024 Justice Assistance Grant
Submitted by: Emily Morgenstern, Public Safety Department: Public Safety
Community Engagement
Brief Summary:
The Police Department is seeking approval to enter into a MOU with the County of Muskegon and
Muskegon Heights to receive funds for the allocated 2024 Edward Byrne Memorial Justice Assistance
Grant (JAG) program funds. Local JAG allocations to disparate jurisdictions in our county totals
$34,675.
Detailed Summary & Background:
The Police Department is seeking approval to enter into a MOU with the County of Muskegon and
Muskegon Heights to receive funds for the allocated 2024 Edward Byrne Memorial Justice Assistance
Grant (JAG) program funds. Local JAG allocations to disparate jurisdictions in our county totals
$34,675.
This is a grant the community has received before. The City of Muskegon will continue to act as the
fiduciary and receive $21,486, the City of Muskegon Heights would be a sub-receipient and receive
$13,189 and the County of Muskegon would not receive funding.
Similar to past years, the City of Muskegon’s portion of this grant will be used for the prosecution of
city ordinance cases dealing primarily with neighborhood issues.
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
$34,675 Yes X No N/A
Fund(s) or Account(s): Budget Amendment Needed:
101-266-802 Yes No X N/A
Recommended Motion:
I move to approve the 2024 JAG Grant Memorandum of Understanding and authorize the Mayor to
sign to receive the grant funds.
Approvals: Name the Policy/Ordinance Followed:
Page 255 of 292
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 256 of 292
MEMORANDUM OF UNDERSTANDING
THE CITY OF MUSKEGON
THE COUNTY OF MUSKEGON
THE CITY OF MUSKEGON HEIGHTS
FY 2024 JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD
Regular Funding/Local Solicitation
This Agreement is made and entered into on the ____ day of January, 2026 by and
between the County of Muskegon, acting by and through its governing body, the Board of
County Commissioners, located at 1903 Marquette, Muskegon, Michigan 49442 and the City
of Muskegon, acting by and through its governing body, the City Commission, located at
933 Terrace Street, Muskegon, Michigan 49440, and the City of Muskegon Heights, acting
by and through its governing body, the City Council, located at 2724 Peck Street, Muskegon
Hts., MI 49444, all of Muskegon County, State of Michigan, witnesseth:
WHEREAS, the CITY OF MUSKEGON has agreed to serve as the applicant/fiscal agent
for the joint funds under the: Edward Byrne Memorial Justice Assistance Grant Program
(Local Solicitation) as the Bureau of Justice Assistance has designated the allocation to the
law enforcement communities in Muskegon County as a disparate allocation; and
WHEREAS, each governing body, in performing governmental functions or in paying for
the performance of governmental functions, hereunder, shall make that performance or
those payments from current revenues legally available to that party; and
WHEREAS, each governing body finds that the performance of this Agreement is in the
best interest of all parties, that the undertaking will benefit the public, and that the division
of costs fairly compensates the performing party for the services or functions under this
Agreement; and
Page 1 of 3
Page 257 of 292
WHEREAS, the breakdown of allocated funding agreed upon by those entities involved
in the disparate funding is $ 21,486 to the CITY OF MUSKEGON and $ 13,189 to the CITY
OF MUSKEGON HEIGHTS; and
WHEREAS, the CITY OF MUSKEGON, CITY OF MUSKEGON HEIGHTS and COUNTY OF
MUSKEGON believe it to be in their best interests to allocate the JAG funds as specified in
this Agreement.
NOW THEREFORE, THE COUNTY OF MUSKEGON, CITY OF MUSKEGON AND CITY OF
MUSKEGON HEIGHTS agree as follows:
AGREEMENT
1. THE CITY OF MUSKEGON will act as the fiscal agent/applicant agency.
2. The total eligible joint allocation for the disparate jurisdictions of $34,675 will be
allocated as follows: COUNTY OF MUSKEGON - $ 0; CITY OF MUSKEGON - $21,486;
CITY OF MUSKEGON HEIGHTS - $ 13,189.
3. Each municipality will be responsible for its actions in the use of any equipment
purchased under this Agreement and the fiscal agent shall not be liable for any civil
liability that may arise from the purchase of the use of the equipment.
4. The CITY OF MUSKEGON HEIGHTS will be responsible for submitting quarterly
reports to the CITY OF MUSKEGON by the third day of the month following the
quarter in the reporting fashion required by the CITY OF MUSKEGON and for any
month in which an expenditure under the grant has occurred the CITY OF
MUSKEGON HEIGHTS will submit a reimbursement request to the CITY OF
MUSKEGON by the third day of the following month along with backup
documentation such as invoices.
5. The CITY OF MUSKEGON HEIGHTS will be responsible for the accuracy of all data
submitted to the CITY OF MUSKEGON for submission to the Bureau of Justice
Page 2 of 3
Page 258 of 292
Programs and will be liable for penalties as a result of submitting the data late and
for any inaccurate data.
6. Nothing in the performance of this Agreement shall impose any liability for claims
against the CITY OF MUSKEGON passing from this program or from the CITY OF
MUSKEGON HEIGHT’s expenditure of the JAG funds.
7. By entering into this Agreement, the parties do not intend to create any obligations,
express or implied, other than those set out herein. Further, this Agreement shall
not create any rights in any party not a signatory hereto.
COUNTY OF MUSKEGON
Dated:_______________, 2023 By:____________________________
Charles Nash, Chairman
County Board of Commissioners
CITY OF MUSKEGON
Dated:_______________, 2023 By:____________________________
Kenneth Johnson, Mayor
CITY OF MUSKEGON HEIGHTS
Dated:_______________, 2023 By:_____________________________
Bonnie McGlothin, Mayor
Page 3 of 3
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Resolution Revoking an Obsolete Property
Rehabilitation Act (OPRA) Exemption Certificate
for Ghezzi Investments LLC
Submitted by: Isabela Gonzalez, Development Department: Economic Development
Analyst
Brief Summary:
Staff has drafted a resolution to revoke the OPRA certificate for the property located at 1937
Lakeshore Drive.
Detailed Summary & Background:
On March 12th, 2019, the City Commission approved a resolution to establish an Obsolete Property
Rehabilitation Act (OPRA) Exemption Certificate for Richard Ghezzi, of Ghezzi Investments LLC. The
property at 1937 Lakeshore Drive (the former Harbor Theater in Lakeside) was previously approved for
rehabilitation under OPRA to support a redevelopment project. The project was required to
commence within two years of the certificate’s issuance, with a completion deadline of March 12,
2021. Unfortunately, that project was not completed within the required construction period, and the
property has since changed ownership. A new mixed-use redevelopment project is now proposed
for the site. Staff has prepared a resolution to revoke the existing OPRA certificate in order to allow
the current property owners to consider future development incentives for the property.
Revoking the existing OPRA certificate is a necessary step to clear the prior approval and enable the
current property owners to pursue a new tax abatement for their proposed redevelopment project.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
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 adopt the resolution revoking the Obsolete Property Rehabilitation Act (OPRA) Exemption
Certificate for Ghezzi Investments LLC at 1937 Lakeshore Drive.
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Approvals: Name the Policy/Ordinance Followed:
Immediate Division Public Act 146 of 2000, as amended.
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 261 of 292
Resolution No.__________
MUSKEGON CITY COMMISSION
RESOLUTION REVOKING AN OBSOLETE PROPERTY REHABILITATION ACT
(OPRA) EXEMPTION CERTIFICATE FOR GHEZZI INVESTMENTS LLC
WHEREAS, pursuant to Public Act 146 of 2000, as amended, the Obsolete Property
Rehabilitation Act, after a duly noticed public hearing held on March 12, 2019, the City
Commission of the City of Muskegon established the 1937 Lakeshore Drive Obsolete
Property Rehabilitation District; and
WHEREAS, the City of Muskegon approved an Obsolete Property Rehabilitation Act
(OPRA) application for Ghezzi Investments LLC, owned by Richard Ghezzi, and issued
OPRA Exemption Certificate No. 3-19-0015 for property located at 1937 Lakeshore
Drive, Muskegon, Michigan; and
WHEREAS, the rehabilitation work authorized under OPRA Exemption Certificate No.
3-19-0015 was required to be completed by March 12, 2021, was not completed within
the approved construction period, and the subject property has since been sold for a
separate redevelopment project; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MUSKEGON, COUNTY OF MUSKEGON, MICHIGAN, that the City
Commission hereby revokes Obsolete Property Rehabilitation Act Exemption Certificate
No. 3-19-0015 issued to Ghezzi Investments LLC for the property located at 1937
Lakeshore Drive, Muskegon, Michigan.
Adopted this 13th Day of January 2026.
AYES:
NAYS:
Absent:
BY: __________________________________
Ken Johnson, Mayor
ATTEST: _________________________________
Ann Meisch, Clerk
6.17.2024
Page 262 of 292
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission of the City of Muskegon, County of
Muskegon, Michigan at a regular meeting held on January 13, 2026.
_______________________________
Ann Meisch, Clerk
6.17.2024
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Amendment to Purchase and Development
Agreement: 286/294 Myrtle
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is seeking authorization to amend the Purchase and Development Agreement with RSW
Holdings LLC and Barrowstone Capital LLC (approved on June 10, 2025).
Detailed Summary & Background:
In an effort to minimize disruption of established neighboring properties due to encroachment issues,
staff is seeking authorization to amend the Purchase and Development Agreement (attached) with
RSW Holdings LLC and Barrowstone Capital LLC (approved on June 10, 2025) to allow the total
number of homes to be built to be three (3) instead of the currently obligated four (4).
The original number of housing units in this agreement was five (5), reduced to four (4) after a
previously approved amendment (attached). This agreement approved the purchase of three
parent parcels that were to be split into five build-able lots for the construction of a single-family
home on each lot. The first amendment, approved by the city commission on 12/9/25, reduced the
number of homes to be built on 450 Orchard from two (2) to one (1). 450 Orchard was split into two
lots, resulting in a new address of 454 Orchard. After construction began, the placement of two
houses on this lot resulted in encroachment on neighboring properties.
Another property on the original purchase agreement, 286 Myrtle — later split into two lots (286 & 294
Myrtle), has been found to also have encroachment issues. The house on the property to the east
straddles the parcel line, as well as, the location of a neighbor's deck/shed/parking area to the
northwest is extending onto the parcel (drawing attached: yellow=areas of encroachment,
teal=proposed new house placement). Staff is recommending reducing the builders' obligation to
one home to be built here, to combine the current lots (286 & 294 Myrtle) back to one lot, and
adjusting the boundaries to accommodate the encroachment issues.
Staff would like to seek approval for a second amendment for this agreement, and combine this lot
back to its original dimensions and allow the developer to build one single-family home.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Staff would like to amend the original purchase and development agreement and allow developer
to build one single-family home on 286 Myrtle.
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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 authorize the Code Coordinator to amend the Purchase and Development Agreement with RSW
Holdings LLC and Barrowstone Capital LLC (approved on June 10, 2025), as described, and to have
the Mayor and Clerk sign the purchase agreement addendum.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division x Master Plan, Zoning Ordinance, Policy for the Use
Head & Sale of City-Owned Residential Property
Information
Technology
Other Division Heads x
Communication
Legal Review x
Page 265 of 292
ADDENDUM NO. 2 TO LOT PURCHASE AND DEVELOPMENT AGREEMENT
This Addendum No. 2 to Lot Purchase Agreement ("Addendum") is entered
into January 13, 2025, between RSW Holdings LLC and Barrowstone Capital LLC,
Michigan limited liability companies, of 691 Ottawa Beach Road, Holland, MI, 49423
("Purchaser") and the City of Muskegon, a Michigan municipal corporation, of 933 Terrace
Street, Muskegon, Michigan 49440 ("Seller") as follows:
BACKGROUND
A. On June 10, 2025, Purchaser and Seller entered into a Lot Purchase Agreement (the
"Agreement"), which included the purchase of three (3) Lots located in the City of
Muskegon, Muskegon County, Michigan (the "Land").
B. On December 9, 2025, Purchase and Seller executed Addendum No. 1 to replace Letter
“B”, under the “Background” Section (page 1).
C. The parties now seek to further amend Letter “B”, under the “Background” Section (page
1) as set forth below, to account for the boundary adjustment of 286 Myrtle (Parcel No.
61-24-205-199-0008-01) and 294 Myrtle (Parcel No. 61-24-205-199-0008-10).
AGREEMENT
Based upon satisfactory consideration, acknowledged by the parties, they agree as follows:
1. 286 Myrtle Ave has been split into Parcel No. 61-24-205-199-0008-01 (286 Myrtle Ave)
and Parcel No. 61-24-205-199-0008-10 (294 Myrtle). These parcels will be combined
into the original parent parcel of 286 Myrtle and the boundary lines adjusted to address
encroachment issues with adjacent properties to the east and northwest. One single-
family home will be built. This will result in the total of single-family homes to be built
under this agreement to be three (3) homes.
2. Except as modified by Addendum No. 1 and No. 2, the parties verify and affirm the Lot
Purchase Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Addendum No. 2 as of the
date first written above.
SELLER: PURCHASER:
CITY OF MUSKEGON RSW Holdings LLC
By: _______________________________ By: _______________________________
Name: Ken Johnson Name: Ron Webb
Title: Mayor Dated: __________________
Dated: __________________
By: _______________________________ Barrowstone Capital LLC
Name: Ann Marie Meisch By: _______________________________
Title: City Clerk Name: ___________________
Dated: __________________ Dated: __________________
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Adjacent Parcel:
794 Rathborne
Adjacent Parcel:
304 Myrtle
Page 276 of 292
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Sale of 502 Oak
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is seeking authorization to sell the City-owned vacant lot at 502 Oak to David Arnoldink.
Detailed Summary & Background:
David Arnoldink, would like to purchase the City-owned buildable lot at 502 Oak for $2,000 (50% of
the True Cash Value of $4,000) plus half of the closing costs, and the fee to register the deed. David
Arnoldink will be constructing a duplex and an ADU on the property.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
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:
Authorize staff to sell the City-owned vacant lot at 502 Oak to David Arnoldink.
Approvals: Name the Policy/Ordinance Followed:
Immediate x Master Plan, Zoning Ordinance, Policy for the Use & Sale of City-Owned Residentia
Division Head
Information
Technology
Other Division x
Heads
Communication
Legal Review
Page 277 of 292
PURCHASE AND DEVELOPMENT AGREEMENT
This Purchase and Development Agreement (“Agreement”) is made January 13, 2026 (“Effective
Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street,
Muskegon, Michigan 49440 (“City”), and David Arnoldink, 4485 Grand Point, Holland, MI, 49424
(“Developer”), with reference to the following facts:
Background
A. Developer proposes to purchase and develop one (1) vacant property owned by the City
which is located in the City of Muskegon, Muskegon County, Michigan, and is commonly known and
legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project
Property”).
B. City and Developer desire to establish the terms, covenants, and conditions upon which
City will sell and Developer will purchase and develop the Project Property. Developer intends to develop
on the Project Property, one (1) duplex on each Parcel and one (1) accessory dwelling unit, for a total of
one (1) duplex and one (1) accessory dwelling unit. (the “Project”).
Therefore, for good and valuable consideration, the parties agree as follows:
1. Sale and Purchase of Project Property. City agrees to sell to Developer, and Developer
agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the
Project Property, subject to reservations, restrictions, and easements of record.
2. Purchase Price. The total purchase price for the Project Property shall be $2,000.00,
which shall be paid in cash or other immediately available funds at Closing (defined below) less the $400
deposit that the Developer has paid to the City of Muskegon.
Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be
reimbursed all or a portion of the purchase price for the Parcel upon the completion of certain design
standards as further described herein.
3. Construction and Development Requirements.
a. Construction Dates. The parties acknowledge and agree that Developer shall have
a period of eighteen (18) months from the date of Closing to complete the Project (“Construction
Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by
the parties in writing.
b. Construction Details; Purchase Price Reimbursement. Developer’s construction
and development of the Project Property, including single-family homes, duplexes, triplexes, and
accessory dwelling units, shall be in substantial conformance with its plans and specifications
provided to City by Developer or as otherwise agreed upon in writing between City and Developer.
As referenced above, Developer shall be eligible for reimbursement of 80% of the purchase price
for the Project Property upon Developer’s completion of construction for each single-family home,
duplex, triplex, and accessory dwelling unit on the Project Property.
4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for
Developer’s obligation to commence and complete construction of a duplex and an accessory dwelling unit
on each of the Project Property, the quit claim deed conveying the Project Property to Developer shall
Page 278 of 292
contain a right of reversion in all of the Project Property (“City’s Reversionary Right”), which may be
exercised by City, in its sole and absolute discretion, if any of the following conditions occur:
a. Developer does not commence construction within sixty (60) days after the date of
Closing, in which case title to all of the Project Property shall automatically revert to City upon the
terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph
4(a), commencing construction means furnishing labor and materials to the Parcel of the Project
Property and beginning installation of the approved duplex and an accessory dwelling unit.
b. Developer does not complete construction of the Project Property prior to
expiration of the Construction Period, in which case title to any of the Project Property that are not
complete by the end of the Construction Period shall automatically revert to City upon the terms
and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b),
completing construction means the issuance of an occupancy permit by City for the Project
Property. Provided, however, the parties agree to reasonably negotiate an extension of the
Construction Period up to a period of six (6) months for the Project Property that have a completed
foundation before the expiration of the initial Construction Period.
If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire
title to the Project Property, as the case may be. To exercise City’s Reversionary Right described herein,
City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within
thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying
the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such
notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all
reasonable steps to ensure City acquires marketable title to the Project Property, as the case may be, through
its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without
limitation, the execution of appropriate deeds and other documents.
In addition, if the Project Property revert to City, City may retain the purchase price for such Project
Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the
Project Property, improvements made on such Project Property shall become the property of City. In no
event shall the Project Property be in a worse condition than upon the date of Closing. These covenants and
conditions shall run with the land and be recorded in the quit claim deed from City to Developer.
5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title
commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title
Agency (the “Title Company”) for the Project Property in the amount of the total purchase price for the
Project Property and bearing a date later than the Effective Date, along with copies of all of the underlying
documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue
a marked-up commitment or pro forma owner’s policy with respect to the Project Property at the Closing
naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but
subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall
cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title
insurance with respect to the Project Property (the “Title Policy”). City shall be responsible for the cost of
the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements
to the Title Policy that Developer desires.
6. Title Objections. Developer shall have until the end of the Inspection Period (as defined
below) within which to raise objections to the status of City’s title to the Project Property. If objection to
the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects
claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections.
Page 279 of 292
If Developer does not notify City in writing as to any title or survey objections, then Developer will be
deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or
unable to remedy the title or obtain title insurance over such defects within the time period specified, then
notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice
to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation
to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection,
in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing
according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or
not objected to by Developer shall be deemed a “Permitted Exception.”
7. Property Taxes and Assessments. City shall be responsible for the payment of all real
estate taxes and assessments that become due and payable prior to Closing, without proration. Developer
shall be responsible for the payment of all real estate taxes and assessments that become due and payable
after Closing, without proration.
8. Survey. Developer at its own expense may obtain a survey of any or all of the Project
Property, and Buyer or its surveyor or other agents may enter any of the Project Property for that purpose
prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon
Developer's own judgment as to the location, boundaries, and area of the Project Property and
improvements thereon without regard to any representations that may have been made by City or any other
person. In the event that a survey by a registered land surveyor made prior to Closing discloses an
encroachment or substantial variation from the presumed land boundaries or area, City shall have the option
of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may
elect to purchase the Project Property subject to said encroachment or variation.
9. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s
agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective
Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example
but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the
Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in
Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason,
Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If
Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no
written objection is made by Developer within the stated period, this inspection contingency shall be
deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms
of this Agreement.
10. Condition of Project Property. City and Developer acknowledge and agree that the Parcel
in the Project Property is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except
as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not
make, and specifically disclaims any and all representations, warranties, or covenants of any kind or
character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value,
nature, quality, or condition of any of the Project Property, including without limitation, soil conditions,
and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s
activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances;
(iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property;
(v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter
with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have
the opportunity to perform inspections of the Project Property pursuant to this Agreement and that
Developer is relying solely on Developer’s own investigation of the Project Property and not on any
information provided to or to be provided by City (except as specifically provided in this Agreement). If
Page 280 of 292
the transaction contemplated herein closes, Developer agrees to accept the respective Project Property
acquired by Developer and waive all objections or claims against City arising from or related to such Project
Property and any improvements thereon except for a breach of any representations or warranties or
covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s
express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees
that it has determined that the respective Project Property it has acquired and all improvements thereon are
in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and
Developer has accepted such Project Property in their present condition and subject to ordinary wear and
tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of
the deed.
11. Developer’s Representations and Warranties of Developer. Developer represents,
covenants, and warrants the following to be true:
a. Authority. Developer has the power and authority to enter into and perform
Developer’s obligations under this Agreement.
b. Litigation. No judgment is outstanding against Developer and no litigation, action,
suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or
governmental body, department or agency or, to the knowledge of Developer, threatened, that has
the stated purpose or the probable effect of enjoining or preventing the Closing.
c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy,
receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary,
affecting Developer or any of Developer's assets or property, is now or on the Closing Date will be
pending or, to the knowledge of Developer, threatened.
12. Conditions Precedent. This Agreement and all of the obligations of Developer under this
Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of
each of the following conditions:
a. Performance. The obligations, agreements, documents, and conditions required to
be signed and performed by City shall have been performed and complied with before or at the date
of the Closing.
b. City Commission Approval. This Agreement is approved by the Muskegon City
Commission.
13. Default.
a. By Developer. In the event Developer fails to comply with any or all of the
obligations, covenants, warranties, or agreements under this Agreement and such default is not
cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the
purchase price in full at Closing, a default for which no notice is required), then City may terminate
this Agreement.
b. By City. In the event City fails to comply with any or all of the obligations,
covenants, warranties or agreements under this Agreement, and such default is not cured within ten
(10) days after receipt of notice, then Developer may either terminate this Agreement or Developer
may pursue its legal and/or equitable remedies against City including, without limitation, specific
performance.
Page 281 of 292
14. Closing.
a. Date of Closing. The closing date of this sale shall be as mutually agreed by the
parties, but in no event later than 60 days from the City Commission’s approval of the sale
(“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing
shall be conducted at such time and location as the parties mutually agree.
b. Costs. The costs associated with this Agreement and the Closing shall be paid as
follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law;
(ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for
any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible
to pay for the recording of any instrument that must be recorded to clear title to the extent required
by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer
and City shall each pay one-half of any closing fees charged by the Title Company.
c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Property
and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing
shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute
and deliver such other documents reasonably required to effectuate the transaction contemplated
by this Agreement.
15. Real Estate Commission. Developer and City shall each be responsible for any fees for
any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no
obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other
party has hired.
16. Notices. All notices, approvals, consents and other communications required under this
Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by
fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery
fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid.
The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email;
one day after depositing with a nationally recognized overnight delivery service; and five (5) days after
sending by first class, registered, or certified mail.
Notices shall be sent to the parties as follows:
To City: City of Muskegon
Attn.: Samantha Pulos, Code Coordinator
933 Terrace Street
Muskegon, MI 49440
w/ copy to: Parmenter Law
Attn.: City Attorney
601 Terrace Street, Suite 200
Muskegon, MI 49440
Page 282 of 292
To Developer: David Arnoldink
4485 Grand Point
Holland, MI 49424
Email: davida@westedgerealty.com
Cell: 616-886-8262
17. Miscellaneous.
a. Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of the state of Michigan.
b. Entire Agreement. This Agreement constitutes the entire agreement of the parties
and supersedes any other agreements, written or oral, that may have been made by and between the
parties with respect to the subject matter of this Agreement. All contemporaneous or prior
negotiations and representations have been merged into this Agreement.
c. Amendment. This Agreement shall not be modified or amended except in a
subsequent writing signed by all parties.
d. Binding Effect. This Agreement shall be binding upon and enforceable by the
parties and their respective legal representatives, permitted successors, and assigns.
e. Counterparts. This Agreement may be executed in counterparts, and each set of
duly delivered identical counterparts which includes all signatories, shall be deemed to be one
original document.
f. Full Execution. This Agreement requires the signature of all parties. Until fully
executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if
not fully executed, this Agreement is void.
g. Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of any other provision of this Agreement.
h. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions of this Agreement shall not in any way be impaired or
affected.
i. No Reliance. Each party acknowledges that it has had full opportunity to consult
with legal and financial advisors as it has been deemed necessary or advisable in connection with
its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in
reliance on any representations, warranties, or statements made by the other party other than those
expressly set forth in this Agreement.
j. Assignment or Delegation. Except as otherwise specifically set forth in this
Agreement, neither party shall assign all or any portion of its rights and obligations contained in
this Agreement without the express or prior written approval of the other party, in which approval
may be withheld in the other party's sole discretion.
Page 283 of 292
k. Venue and Jurisdiction. 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 that Muskegon County is the exclusive venue.
This Agreement is executed effective as of the Effective Date set forth above.
CITY: DEVELOPER:
CITY OF MUSKEGON DAVID ARNOLDINK
By: _______________________________ By: _______________________________
Name: Ken Johnson Name: David Arnoldink
Title: Mayor Dated: __________________
Dated: __________________
By: _______________________________
Name: Ann Marie Meisch
Title: City Clerk
Dated: __________________
Page 284 of 292
Exhibit A
The following described premises located in the City of Muskegon, County of Muskegon, State of
Michigan, and legally described as follows:
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 10 BLK 41
Address: 502 OAK AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-041-0010-00
Price: $2,000.00
Page 285 of 292
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 13, 2026 Title: Sewer Jet Truck Purchase
Submitted by: Dawson Romanosky, DPW Department: Public Works
Equipment Supervisor
Brief Summary:
DPW staff would like to replace our existing sewer jet truck with the 2026 Freightliner M2 offered from
Fredrickson Supply for $318,448.07
Detailed Summary & Background:
DPW staff use our existing sewer jet truck daily. This truck is used to ensure our sewer and drain systems
are working properly and help remove any blockages. This truck is commonly used to clear blocked
sewer pipelines when residents call regarding sewer backups at their home. This piece of equipment
is one of the City's most commonly used and its reliability is essential for DPW staff. The current sewer
jet truck is 13 years old and has started showing signs of its age. One option to replace it would be a
2026 Freightliner from Fredrickson Supply. We have explored several options for replacement from
various vendors and, based on the feedback of staff, the sewer jet truck from Fredrickson is the best
fit for our staff. The control system of this vehicle mirrors that of similar equipment we currently own
and use. This will allow for cross-training between the departments and equipment. This replacement
will provide the reliability and versatility we need. Fredrickson Supply had quoted the truck with
Sourcewell pricing. Sourcewell is a cooperative purchasing program that allows agencies to
purchase equipment or services through pre-bid contracts, satisfying the City's purchasing policy and
bidding requirements.
Goal/Action Item:
2027 Goal 4: Financial Infrastructure
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
$318,448.07 Yes x No N/A
Fund(s) or Account(s): Budget Amendment Needed:
Equipment Fund 661-563-977 Yes No x N/A
Recommended Motion:
Staff recommends the purchase of a 2026 Freightliner Sewer Jet Truck from Fredrickson Supply for the
amount of $318,448.07
Approvals: Name the Policy/Ordinance Followed:
Page 286 of 292
Immediate Division X Purchasing Policy
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 287 of 292
1590 Dutch Road l Dixon, IL 61021
p 815.835.5566 I f 815.284.5600
www.SewerEquipment.com
PO#
December 3, 2025
Product Class:
Sourcewell: City of Muskegon ID# 118431, Sewer Equipment# 101221-SCA REV:
Distributor: Fredrickson Supply WO#
Salesman: Alex Pummill
End User: City of Muskegon
Address: 1350 E Keating
City, State, Zip: Muskegon, MI 49442
Phone: 231-724-4100
Contact: Dawson Romanosky
Email: dawson.romanosky@shorelinecity.com
800-HPR ECO Series IV
Rear Compartment Options: Hose Reel & Hose Option: Nozzles & Accessories:
Giant 65 GPM @ 2000 PSI Telescoping & Rotating Safety Reel 10' Leader Hose
w/30 Min Run Dry Capability w/700' Capacity of 1" Hose BB Hose Guide
Hydrostatic Drive Via Trans Power PTO Tank & Fill: Tri-Star (Chisel Point) Nozzle
Hydraulic Pressure Guage 1500 Gallon Duraprolene™ (Black) DD (High Flow) Nozzle
Lighted NEMA 4 Control Panel Water Tank w/10 Year Warranty Finned Nozzle Extension
Tachometer / Hour Meter 2.5" Fill System Nozzle Rack
Air Purge Valve Truck: 25' Fill Hose
Recirculation System at Highway Speed Mounting to Approved Chassis Washdown Gun w/25' Ext. Hose
Painted Steel Shroud Enclosure Mudflaps & Aluminum Side Skirting Upstream Pulley Guide
w/3 Roll-Up Doors Bumper / Hitch Receiver Paper Operator / Owner Manual
Midship Water Manifold System Aluminum Underbody Toolboxes (2) Per Side, (1) Rear
Consolidated Water Drain System D.O.T. Approved LED Lighting
BASE UNIT AS OUTLINED ABOVE $ 160,758.00 1 $160,758.00
LIST PRICE OF SELECTED OPTIONS: $64,873.00
LESS PERCENTAGE DISCOUNT (enter % →) 3% ($6,768.93)
NET PRICE OF UNIT: $218,862.07
Factory Supplied Chassis 80966-00-K Freightliner M2 106+ Chassis: $97,586.00
ESTIMATED FREIGHT & PDI: $2,000.00
ESTIMATED TOTAL: $318,448.07
STANDARD OPTIONS: LIST PRICE QTY TOTAL
REAR COMPARTMENT OPTIONS:
UPGRADE WATER PUMP TO GIANT 55GPM @ 3,000PSI PLUNGER STYLE TRIPLEX WATER PUMP W/ 30 MINUTE
$ 10,751.00 $ -
RUN DRY CAPABILITY
UPGRADE WATER PUMP TO GIANT 80GPM @ 2,000PSI PLUNGER STYLE TRIPLEX WATER PUMP W/ 30 MINUTE
RUN DRY CAPABILITY
$ 11,476.00 1 $ 11,476.00
UPGRADE WATER PUMP TO GIANT 80GPM @ 2,500PSI PLUNGER STYLE TRIPLEX WATER PUMP W/ 30 MINUTE
$ 12,833.00 $ -
RUN DRY CAPABILITY
GIANT PUMP PULSATION SYSTEM $ 311.00 $ -
UPGRADE TO ENVIORNMENTALLY FRIENDLY HYDRAULIC FLUID (ECOTERRA) $ 705.00 $ -
HYDRAULIC TOOL CIRCUIT - (9.5GPM w/ hand control valve, quick connects, and hydraulic heat exchanger) $ 4,209.00 $ -
LATERAL LINE CLEANING KIT (300' x 1/2" sewer hose on a stationary reel w/ electric rewind. Includes a dedicated
$ 5,178.00 $ -
auxiliary cleaning circuit rated at system pressure, a flushing nozzle, and a penetrating nozzle.)
LATERAL LINE CLEANING KIT (300' x 1/2" sewer hose on a stationary reel w/ variable electric rewind. Includes a
$ 8,125.00 $ -
dedicated auxiliary cleaning circuit rated at system pressure, a flushing nozzle, and a penetrating nozzle.)
WASHDOWN SYSTEM W/ 50FT RETRACTABLE HOSE REEL $ 1,695.00 1 $ 1,695.00
400,000 BTU WATER HEATER RATED 12GPM @ SYSTEM PRESSURE - 45°F HEAT RISE (not available w/
$ 11,376.00 $ -
winterization system or foaming root control options)
Page 288 of 292
FREIGHT AND/OR APPLICABLE TAXES NOT INCLUDED 2025
800,000 BTU WATER HEATER RATED 20GPM @ SYSTEM PRESSURE - 60°F HEAT RISE (not available w/
$ 17,439.00 $ -
winterization system or foaming root control options)
SANITIZING SYSTEM (Includes sewer hose clamp on sanitizer nozzle and separate washdown system with 50' of hose
and spray nozzle on a retractable reel. Not available w/ Root Foam Control, Degreaser, or Lateral Line Cleaning Kit $ 14,551.00 $ -
options)
WINTERIZATION SYSTEM (Includes 68 gallon antifreeze tank with reclamation circuit. Not available with water heater or
$ 1,867.00 $ -
Root Foam Control System options.)
ROOT FOAM CONTROL SYSTEM (Includes Patented root foaming system w/ touch screen controller and automatic
mixing system for air, water and foaming agent. Requires chassis to have an air compressor Not available w/ Lateral Line $ 52,081.00 $ -
Cleaning Kit, Sanitizing System, Winterization System, Degreaser System, or Water Heater options.)
ROOT FOAM CONTROL SYSTEM INSTALLATION OF CUSTOMER SUPPLIED SYSTEM (Not available w/ Lateral Line
$ 5,482.00 $ -
Cleaning Kit, Sanitizing System, Winterization System, Degreaser System, or Water Heater options.)
DEGREASER SYSTEM (Includes 15 gallon tank. Not available w/ Sanitizing System or Lateral Line Cleaning Kit options.) $ 9,600.00 $ -
UPGRADE TO ALUMINUM SHROUD $ 7,401.00 1 $ 7,401.00
ALUMINUM FIXED OVERHEAD CANOPY - 2' EXTENSION $ 863.00 $ -
ELECTRIC OVERHEAD CANOPY - 8' EXTENSION $ 7,750.00 1 $ 7,750.00
DEDUCT TO REMOVE COMPARTMENT HEATER $ (1,343.00) $ -
POLAR PACK INSULATION SYSTEM (Includes a sealed underbelly and insulated walls.) $ 7,777.00 $ -
HOSE REEL AND HOSE OPTIONS:
HIGH CAPACITY HOSE REEL (1,000' x 1" sewer hose) $ 3,350.00 $ -
TESTING FEE (for units ordered without sewer hose) $ 578.00 $ -
3/4" ID X 3,000 PSI OPERATING PRESSURE - PER FT $ 5.62 $ -
1" ID x 2,500 PSI OPERATING PRESSURE - PER FT $ 5.67 600 $ 3,402.00
1" ID x 3,000 PSI OPERATING PRESSURE - PER FT $ 7.44 $ -
AUTOMATIC LEVELWIND W/ HYDRAULIC UP/DOWN ACTION $ 8,551.00 1 $ 8,551.00
DIGITAL REFERENCE DISTANCE METER ±10% ACCURACY $ 1,832.00 $ -
DIGITAL 'SMART COUNTER' FOOTAGE METER ±3% ACCURACY $ 3,778.00 1 $ 3,778.00
DUAL REEL OPTIONS:
DUAL HOSE REEL (600' x 1" or 900' x 3/4" capacity on main reel and 600' x 3/4" or 1000' x 5/8" capacity on aux reel.
$ 8,783.00 $ -
Includes 2 additional nozzles and nozzle rack.)
HIGH CAPACITY DUAL HOSE REEL (1,000' x 1" capacity on main reel and 1,000' x 3/4" capacity on aux reel. Includes 2
$ 14,920.00 $ -
additional nozzles and nozzle rack.)
DUAL HOSE REEL W/ PLATFORM (1,000' x 1" capacity on hose reel, platform 25" wide) $ 5,996.00 $ -
DUAL AUTOMATIC LEVELWIND W/ HYDRAULIC UP/DOWN ACTION $ 14,804.00 $ -
1/2" ID X 4,000 PSI OPERATING PRESSURE - PER FT $ 5.08 $ -
5/8" ID X 4,000 PSI OPERATING PRESSURE - PER FT $ 5.34 $ -
3/4" ID X 2,500 PSI OPERATING PRESSURE - PER FT $ 5.21 $ -
DIGITAL REFERENCE DISTANCE METER FOR DUAL REEL UNITS ±10% ACCURACY $ 2,296.00 $ -
DIGITAL 'SMART COUNTER' FOOTAGE METER FOR DUAL REEL UNITS ±3% ACCURACY $ 5,392.00 $ -
TANK & FILL OPTIONS:
DECREASE TO 1,000 GALLON DURAPROLENE™ (BLACK) WATER TANK W/ 10 YEAR WARRANTY $ (1,384.00) $ -
UPGRADE TO FULLY BAFFLED 2,000 GALLON DURAPROLENE™ (BLACK) WATER TANK W/ 10 YEAR WARRANTY $ 7,567.00 $ -
UPGRADE TO FULLY BAFFLED 2,500 GALLON DURAPROLENE™ (BLACK) WATER TANK W/ 10 YEAR WARRANTY $ 24,209.00 $ -
UPGRADE TO FULLY BAFFLED 3,000 GALLON DURAPROLENE™ (BLACK) WATER TANK W/ 10 YEAR WARRANTY $ 27,988.00 $ -
UPGRADE TO LOW PROFILE FULLY BAFFLED 1,500 GALLON DURAPROLENE™ (BLACK) WATER TANK W/ 10
$ 24,234.00 $ -
YEAR WARRANTY (reduces overall height by 8")
FILL HOSE STORAGE RACK $ 263.00 1 $ 263.00
CONTINUOUS FILL SYSTEM $ 1,912.00 $ -
2" WYE-STRAINER ON INLET FILL SYSTEM $ 684.00 1 $ 684.00
TANK ACCESS LADDER $ 1,102.00 $ -
ELECTRICAL & LIGHTING:
LED COMPARTMENT LIGHT $ 270.00 1 $ 270.00
Page 289 of 292
FREIGHT AND/OR APPLICABLE TAXES NOT INCLUDED 2025
LED TOOLBOX LIGHTING $ 1,245.00 1 $ 1,245.00
LED MANHOLE AREA WORK LIGHT MOUNTED ON HOSE REEL $ 574.00 1 $ 574.00
LED WORK LIGHT PACKAGE (4 lights total - 1 light right side of shroud, 1 light left side of shroud, and 2 lights on rear) $ 2,058.00 $ -
LED AMBER STROBE LIGHT MOUNTED ON TOP OF HEATED COMPARTMENT $ 670.00 $ -
LED STROBE LIGHT PACKAGE (8 lights total - 2 lights in grill, 2 lights right side of shroud, 2 lights left side of shroud, and
2 lights on rear)
$ 2,859.00 1 $ 2,859.00
LED ARROW STICK $ 1,361.00 1 $ 1,361.00
LED ARROW BOARD $ 1,618.00 $ -
HAND-HELD WIRELESS LED SPOTLIGHT (rechargable with 12v and 110v and includes storage bracket) $ 428.00 $ -
12VDC POWER OUTLET $ 85.00 $ -
DC/AC 2000W PURE SINE WAVE POWER INVERTER (inverter mounted in cab w/ 1 GFCI power outlet in cab and 1
$ 3,655.00 $ -
GFCI power outlet at midship on curbside of unit)
WIRELESS REMOTE PENDANT CONTROL (w/ hose reel payout/retreive, throttle up/down, water on/off, water pressure
up/down, hose reel speed up/down, water pressure display, and kill switch)
$ 8,900.00 1 $ 8,900.00
PAINT:
SHROUD - ALUMINUM OR STEEL PAINTED STANDARD WHITE (specify color in special options)
HOSE REEL & UPRIGHT - STANDARD SEWER BLUE (specify color in special options) $ 875.00 $ -
FRAME & FENDERS - STANDARD BLACK (specify color in special options)
CONTACT FACTORY FOR METALLIC PAINT AND CLEAR COAT OPTIONS $ - $ -
TRUCK MOUNTING AND TOOL STORAGE OPTIONS:
NON-STOCK CHASSIS MOUNTING ALTERATIONS $ 4,350.00 $ -
AIR PURGE SYSTEM (powered via chassis air system) $ 1,742.00 $ -
HYDROSTATIC FRONT CRACKSHAFT DIRECT DRIVE (requires chassis to have front frame rail extensions and FEPTO
$ 2,722.00 $ -
drive option)
ADJUSTABLE FRONT SPRAY NOZZLE (not available with lateral cleaning kit option) $ 1,905.00 $ -
REAR BACKUP CAMERA W/ 7" COLOR MONITOR MOUNTED IN CAB $ 1,417.00 1 $ 1,417.00
REAR BACKUP CAMERA W/ BLIND SPOT CAMERAS AND 7" COLOR MONITOR MOUNTED IN CAB $ 3,045.00 $ -
REAR DOOR ACCESS (step mounted on rear bumper and grab handle on shroud) $ 190.00 1 $ 190.00
TOW PACKAGE (10,000 lbs. maximum towing capacity with Reese style receiever, brake controller, and 7 pin RV type
$ 936.00 $ -
receptical. Subject to chassis approval.)
TOW PACKAGE (20,000 lbs. maximum towing capacity with combination heavy duty ball hitch, brake controller, and 7 pin
$ 1,378.00 $ -
RV type receptical. Subject to chassis approval.)
SIX 28" D.O.T. SAFETY CONES AND HOLDER $ 1,491.00 1 $ 1,491.00
LONG HANDLE TOOL STORAGE (two 4" tubes behind lockable shroud door) $ 1,041.00 1 $ 1,041.00
ROOT CUTTER MAINTENANCE BOX (mounted inside underdeck toolbox) $ 3,081.00 $ -
MANUALS & TRAINING:
ADDITIONAL PAPER OPERATOR'S MANUAL $ 102.00 $ -
USB OPERATOR'S MANUAL $ 76.00 1 $ 76.00
TRAINING AT CUSTOMER'S LOCATION (1 day) $ 2,133.00 $ -
TRAINING AT CUSTOMER'S LOCATION (additional day) $ 1,589.00 $ -
SEWER UNIVERSITY FOR 800 MODELS $ 1,300.00 $ -
NOZZLES & ACCESSORIES:
MINI MISSILE NOZZLE $ 566.00 $ -
PATRIOT II ROOT CUTTER KIT W/ CONCAVE SAWS $ 3,396.00 $ -
1/2" X 25' LEADER HOSE (in lieu of standard 10') $ 189.00 $ -
3/4" X 25' LEADER HOSE (in lieu of standard 10') $ 278.00 $ -
1" X 25' LEADER HOSE (in lieu of standard 10') $ 449.00 1 $ 449.00
STOCK 1" HOSE PATCH KIT (Includes 5 swage tool, swage fitting, hose die, 5 hose mender, and hose pusher) $ 3,524.00 $ -
MANUAL LEVELWIND FOOTAGE COUNTER (not compatable with auto-levelwind option) $ 2,011.00 $ -
1/2" HIGH EFFICIENCY DUMP GUN $ 401.00 $ -
GREASE GUN KIT (Includes grease gun, 2 grease tubes, and mount) $ 188.00 $ -
WHEEL CHOCKS (stored in toolbox) $ 52.00 $ -
SPECIAL ITEMS:
On-Site Training by Fredrickson Supply (included) $ - 1 $ -
$ -
$ -
Page 290 of 292
FREIGHT AND/OR APPLICABLE TAXES NOT INCLUDED 2025
$ -
$ -
$ -
Non-Stock Chassis
Make: Year: Model: VIN:
SIGNATURE DATE
Please return a signed copy to bigequipment@SewerEquipment.com
Page 291 of 292
FREIGHT AND/OR APPLICABLE TAXES NOT INCLUDED 2025
The city’s current 2013 Sewer Jet Truck.
An example of a new sewer jet truck.
Page 292 of 292
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