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CITY OF MUSKEGON CITY COMMISSION MEETING FEBRUARY 14, 2012 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA CALL TO ORDER: PRAYER: PLEDGE OF ALLEGIANCE: ROLL CALL: HONORS AND AWARDS: INTRODUCTIONS/PRESENTATION: A. Update from Bob Chapla, Community Foundation. CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. W-732 High Service Switchgear Repair/Upgrades. WATER FILTRATION C. 2012-2013 City Commission Goals. CITY MANAGER D. Request to Amend the Resolution Approving the Exemption of New Personal Property (PA 328) – ADAC Plastics. PLANNING & ECONOMIC DEVELOPMENT E. Employee Compensation Plan – EVIP. FINANCE F. First Quarter 2011-12 Budget Reforecast. FINANCE G. Financial Management Software. FINANCE PUBLIC HEARINGS: COMMUNICATIONS: CITY MANAGER’S REPORT: UNFINISHED BUSINESS: A. SECOND READING: PILOT Request – Bayview Towers – Ordinance Amendment. PLANNING & ECONOMIC DEVELOPMENT B. PILOT Request – Bayview Towers – Contract Revision. PLANNING & ECONOMIC DEVELOPMENT NEW BUSINESS: ANY OTHER BUSINESS: PUBLIC PARTICIPATION: Reminder: Individuals who would like to address the City Commission shall do the following: Fill out a request to speak form attached to the agenda or located in the back of the room. Submit the form to the City Clerk. Be recognized by the Chair. Step forward to the microphone. State name and address. Limit of 3 minutes to address the Commission. (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) CLOSED SESSION: ADJOURNMENT: ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TTY/TDD: dial 7-1-1 and request a representative to dial (231) 724-6705. Date: February 14, 2012 To: Honorable Mayor and City Commissioners From: Ann Marie Cummings, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the January 24th City Commission Meeting and the January 27th Special Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING JANUARY 24, 2012 CITY COMMISSION CHAMBERS @ 5:30 P.M. MINUTES The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, January 24, 2012. Mayor Warmington opened the meeting with a prayer from Pastor Tim Cross from the Living Word Church of Muskegon after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron, Commissioners Eric Hood, Lawrence Spataro, Willie German, Sue Wierengo, and Byron Turnquist, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Ann Marie Cummings. 2012-05 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve minutes of the January 3rd Organizational Meeting, the January 9th Worksession Meeting and the January 10th City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes B. North Bank Trail Acquisition Funding Request – Resolution of Support. CITY MANAGER SUMMARY OF REQUEST: To adopt a resolution in support of an application from Crockery Township to the Michigan Natural Resources Trust Fund for acquisition funds for Phase 2 of the North Bank Trail. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution. E. Municipal Vehicle Purchase. PUBLIC WORKS 1 SUMMARY OF REQUEST: Authorize staff to purchase new municipal vehicle and snow blower from Fredrickson Equipment who was the lowest responsible bidder. This machine will replace unit #50233. FINANCIAL IMPACT: $95,740. BUDGET ACTION REQUIRED: None, this price is within what the Equipment Division has budgeted. STAFF RECOMMENDATION: Authorize staff to purchase new municipal vehicle and snow blower from Fredrickson Equipment. Motion by Vice Mayor Gawron, second by Commissioner German to approve the Consent Agenda as presented minus items C and D. ROLL VOTE: Ayes: Spataro, German, Gawron, Wierengo, Turnquist, Warmington, and Hood Nays: None MOTION PASSES 2012-06 ITEMS REMOVED FROM THE CONSENT AGENDA: C. PILOT Request – Bayview Towers – Ordinance. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Carl Skrzynski is Vice President of American Community Developers, Inc., which has purchased Bayview Towers in Muskegon. There is currently a PILOT for Bayview Towers which was approved in January 1980. Mr. Skrzynski intends to keep the existing Section 8 status of the housing development and is requesting an extension of the PILOT from the City. Since an alternative form of financing is being sought for this project, not currently included in the PILOT Ordinance, an amendment is necessary to the Ordinance. In addition, the owner is requesting the PILOT for a maximum of 40 years and the current Ordinance only allows for 25 years. FINANCIAL IMPACT: The Ordinance amendment would allow for a greater number of years, which would increase the number of years that the City would not receive full taxes for the property. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: If the City Commission agrees that the PILOT is necessary for this property, staff recommends that the Ordinance amendment be approved and the Clerk be authorized to sign the necessary documents. Motion by Commissioner Turnquist, second by Commissioner Spataro to approve the PILOT request for Bayview Towers Ordinance. ROLL VOTE: Ayes: German, Warmington, Hood, and Spataro Nays: Gawron, Wierengo, and Turnquist MOTION PASSES (REQUIRES SECOND READING) 2 D. PILOT Request – Bayview Towers – Agreement. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Carl Skrzynski is Vice President of American Community Developers, Inc., which has purchased Bayview Towers in Muskegon. There is currently a PILOT for Bayview Towers which was approved in January 1980. Mr. Skrzynski intends to keep the existing Section 8 status of the housing development and is seeking Low Income Housing Tax Credits through MSHDA. He is requesting an extension of the PILOT from the City. FINANCIAL IMPACT: With the current PILOT, the owner of Bayview Towers pays approximately $91,000 a year (Shelter Rent Payment of $34,000 and City Services Charge Payment of $57,000). If this property were to return to traditional property taxes, the owner would pay approximately $282,902 for a year. Therefore, there is a difference of approximately $191,902 a year. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: If the City Commission is favorable to continuing the PILOT for this property, staff recommends that the Contract be approved and the Mayor and Clerk be authorized to sign the necessary documents. Motion by Commissioner Spataro second by Commissioner Hood to approve the PILOT request for Bayview Towers as described subject to approval of the ordinance at the next meeting. ROLL VOTE: Ayes: Wierengo, Warmington, Hood, Spataro, and German Nays: Gawron and Turnquist MOTION PASSES 2012-07 PUBLIC HEARINGS: A. Issuance of a Commercial Rehabilitation Certificate – Lake Welding Supply. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended, Lake Welding Supply has requested the issuance of a Commercial Rehabilitation Certificate. The Certificate will freeze the taxable value of the building and exempt the new real property investment from local taxes. The school operating tax and the State Education Tax (SET) are still levied on the new investment. Land and personal property cannot be abated under this act. The City Commission approved the creation of the Commercial Rehabilitation District at its November 22, 2011 meeting. The company is planning on investing $1.4 million in real property improvements to expand their operations. This would qualify the applicant for an abatement of 10 years. FINANCIAL IMPACT: The real property taxes would be frozen at their pre- rehabilitated rate for the duration of the certificate. BUDGET ACTION REQUIRED: None. 3 STAFF RECOMMENDATION: Staff recommends approval of the Commercial Rehabilitation Certificate. Motion by Vice Mayor Gawron, second by Commissioner Spataro to close the Public Hearing and approve the issuance of a Commercial Rehabilitation Certificate for Lake Welding Supply. ROLL VOTE: Ayes: Wierengo, Turnquist, Warmington, Hood, Spataro, German, and Gawron Nays: None MOTION PASSES 2012-08 NEW BUSINESS: A. Advance Refunding of 2002 LDFA Bonds. FINANCE SUMMARY OF REQUEST: In 2002 the LDFA issued bonds in the amount of $4,725,000 to finance construction of the MAREC building. Repayment of the bonds was to come from tax increment revenues generated by anticipated development on the Smart Zone site. The City’s full faith and credit was pledged and the Community Foundation for Muskegon County also pledged an annual contribution of up to $75,000 (through 2016) to be used in the event tax increment revenues fell short. The bonds were intentionally structured with no/low principal payments during the first ten years to provide time for development and tax increments to grow. Unfortunately, this has not occurred to the extent hoped for. In recent years, the City has contributed $100,000 annually and the full $75,000 CFFMC pledge has been needed to meet debt service requirements. Starting with FY 2012-13, the City’s annual contribution will at least double and remain at high levels until significant, taxable development occurs. The bonds were issued with a ten year call provision and 2012 is the first opportunity to exercise this call. Fortunately, refunding the bonds under current market conditions makes economic sense. FINANCIAL IMPACT: Refunding the LDFA bonds is expected to save $361,045 over the remaining life (about $25,000/year). Present value savings are estimated at $304,165, or about 7% of the outstanding bond principal. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the advance refunding of LDFA bonds. Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the advance refunding of LDFA bonds. ROLL VOTE: Ayes: Turnquist, Warmington, Hood, Spataro, German, Gawron, and Wierengo Nays: None 4 MOTION PASSES B. Concurrence with the Housing Board of Appeals Notice and Order to Demolish the Following: PUBLIC SAFETY 1467 Terrace Street (Area 11) 2226 Continental Street 167 Mason Avenue – Home and Garage (Area 10) SUMMARY OF REQUEST: This is to request that the City Commission concur with the findings of the Housing Board of Appeals that the structures are unsafe, substandard, a public nuisance and that they be demolished within 30 days. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder. FINANCIAL IMPACT: CDBG Funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. Motion by Commissioner Spataro, second by Commissioner Wierengo to concur with the Housing Board of Appeals notice and order to demolish 1467 Terrace, 2226 Continental, and 167 Mason-home and garage. ROLL VOTE: Ayes: Warmington, Hood, Spataro, German, Gawron, Wierengo, and Turnquist Nays: None MOTION PASSES C. Ward and Precinct Redistricting. CITY CLERK SUMMARY OF REQUEST: Due to the 2010 Census, the County district lines have changed, so we are requesting permission to change the City precinct/ward lines. This will allow us to balance the number of registered voters in the precincts and to reduce the number of split precincts. We also request to change the numbers of the precincts from 1 through 14. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign a resolution. COMMITTEE RECOMMENDATION: This has been approved by the Election Commission. Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve 5 the Ward and Precinct redistricting as proposed. ROLL VOTE: Ayes: Hood, Spataro, German, Gawron, Wierengo, Turnquist, and Warmington Nays: None MOTION PASSES D. Use of Explosives for Demolition on Former Sappi Property. CITY MANAGER SUMMARY OF REQUEST: To give permission to demolish the large stick (280’) and the bleach plant by use of explosives on the former Sappi property contingent upon review and approval of the demolition plan by all appropriate City staff. City approval for use of explosives is necessary pursuant to City Ordinance 10- 136. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the use of explosives for demolition as described above, contingent upon review and approval of the demolition plan by all appropriate City staff. Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve the use of explosives for demolition as described contingent upon review and approval of the demolition plan by appropriate City staff. ROLL VOTE: Ayes: Spataro, Gawron, Wierengo, Turnquist, Warmington, and Hood Nays: German MOTION PASSES PUBLIC PARTICIPATION: Public comments were received. ADJOURNMENT: The City Commission Meeting adjourned at 6:45 p.m. Respectfully submitted, Ann Marie Cummings, MMC City Clerk 6 CITY COMMISSION GOAL SETTING SESSION JANUARY 27, 2012 MINUTES Present: Mayor Warmington, Vice Mayor Gawron, Commissioners Hood, German, Spataro, Wierengo, and Turnquist. Staff Present: Mazade, Al-Shatel, Grant, Maurer, Brubaker-Clarke, Bailey, Paul, Smith, Thompson, J. Lewis, Cummings. Abset: B. Lewis Others: Dave Alexander, Muskegon Chronicle, Gary Post, Keith Sype. Opening remarks were given by Mayor Warmington. Bob Kuhn facilitated the session. Meeting began at 10:00 a.m. The Mission, Vision and Value Statements were reviewed. The goal of the City at this time is survival. It’s important that the Commission have a consensus rather than a majority to accomplish the tasks that need to be accomplished. Tim Paul and Bryon Mazade gave an overview of the city finances. 2012 Goals Increase usage of Pere Marquette by residents Promote development- housing Code enforcement- target neighborboods Neigborhood revitalization- rehab houses, private partnerships Police Department - diversity, EEOC, cadet program, Civil Service Re-zoning downtown b2 to b3 Cooperating Services - water, purchasing, income tax administration Sappi Redevelopment, method of evaluation Infrastructure Agreement, millage Work with what we have, i.e. LC Walker Arena support Consumer Power site Baseball Complex Level of services, eliminate/downsize Casino The top four priorities chosen by City Commissioners is as follows: Sappi Redevelopment Neighborhood Revitalization Cooperating Services Downtown Zoning City Staff left the meeting/session at 2:00 p.m. City Manager and Commission continued discussions immediately following. ______________________________ Ann Marie Cummings, MMC City Clerk Date: February 14, 2012 To: Honorable Mayor and City Commission From: Department of Public Works – Water Filtration Plant RE: W-732 High Service Switchgear Repair/Upgrades SUMMARY OF REQUEST: Award the High Service Pumps Switchgear repair/upgrade (W-732) to DVT Electric, Inc. 5151 S. Division St. Wyoming, MI 49548 since they were the lowest responsible bidder with a bid price of $133,680.00 (See bid tabulation attached). FINANCIAL IMPACT: This upgrade was budgeted at $175,000 which includes engineering services of $24,950.00, previously approved, July 11, 2011. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Staff concurs with the engineer’s recommendation and recommends City Commission award the repair/upgrades to DVT Electric, Inc. for $133,680.00. Date: January 23, 2012 To: DPW Director – Mohammed Al-Shatel From: Water Filtration Plant RE: 1972 Pump Station Switchgear Replacement The switchgear breakers outside the 1972 built high service pump station switches 2400 volt power between the 6 high service pumps is in need of an upgrade. These breakers have been problematic and are unreliable due to their current age. As part of the last major plant expansion, this switchgear was expanded to include a new main secondary breaker, tie breaker, and generator main breaker as well as new motor starters for high service pumps 1-6. The new starters were supplied with solid state protective relaying. Due to cost constraints at that time, these breakers remained with the intent that upgrades to these would be done at a later date. These breakers are approaching 40 years of service. Tetra-Tech was the engineering company that was involved in the plant upgrade project in 2004 and was responsible for the design of the plants electrical distribution system as well as the plant supervisory control and data acquisition systems. Gene Jones from Tetra-Tech is intimately familiar with these systems and as the electrical engineer has provided support and troubleshooting assistance to us at no cost for the last 7 years. Gene has been an invaluable resource. They have completed the engineering portion and bid requests have been received. Tetra Tech is recommending awarding the project to DVT Electric, 5151 S. Division St, Wyoming, MI 49548. Staff recommends approval of the award to DVT Electric for the switchgear upgrade at a cost of $133,680.00. January 21, 2012 Transmitted Electronically Mr. Steve Teunis Muskegon Water Filtration Plant 1900 Beach Street Muskegon, MI 49441 Re: Recommendation of Award: W‐732 High Service Switchgear Repair/Upgrade Dear Mr. Teunis: Tetra Tech has completed review of bids received in response to the Request for Bid for contractor services related to the High Service Switchgear Repair/Upgrade project at the Muskegon Water Filtration Plant. There were two project bidders, both bidders acknowledged all addendums (bid tabulation sheet is attached). On January 17, 2012 Tetra Tech conducted a conference call with you and the apparent low bidder “DVT Electric” to discuss several items related to their bid. On January 18, 2012 Ladd Vander Laan of DVT Electric issued an email response to our specific questions discussed on January 17th (see attached email) confirming that DVT Electric intend to install a fully bussed 1200 amp connection between the new and existing switchgear as shown on the design drawings. Tetra Tech recommends awarding W‐732 High Service Switchgear Repair/Upgrades project to “DVT Electric”. We look forward to working with you on this effort. Please contact me at 734‐213‐5075 if you have questions or require additional information. Sincerely, Mick S. Jones, P.E. Senior Project Manager Copy: Mr. Kevin Herbert Mr. Mohammed Al‐Shatel AGENDA ITEM NO. ________________ CITY COMMISSION MEETING February 14, 2012 TO: Honorable Mayor and City Commissioners FROM: Bryon L. Mazade, City Manager DATE: January 31, 2012 RE: 2012–2013 City Commission Goals SUMMARY OF REQUEST: To approve the attached list of goals for 2012-2013. This list is the result of the goals setting session held on January 27, 2012. FINANCIAL IMPACT: Unknown at this time. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To approve the attached list of goals. COMMITTEE RECOMMENDATION: The City Commission met on January 27, 2012 and identified the attached list of goals for 2012-2013. pb\AGENDA\2012-2013 CITY COMMISSION GOALS 013112 Commission Meeting Date: February 14, 2012 Date: February 9, 2012 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Request to amend the resolution approving the Exemption of New Personal Property (PA 328) – ADAC Plastics SUMMARY OF REQUEST: The State of Michigan Property Services Division has requested that the City amend resolution 2011-84a for the approval of the Exemption of New Personal Property for ADAC Plastics. The act has undergone several amendments over the past two years and the State is now requiring additional information in the resolution. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the revised resolution. COMMITTEE RECOMMENDATION: None 2/9/2012 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR EXEMPTION OF NEW PERSONAL PROPERTY UNDER PA 328 OF 1998 ADAC Plastics WHEREAS, the City of Muskegon meets the definition of an “Eligible Local Assessing District” under PA 328 of 1998, Section 7(g), by virtue of containing an eligible distressed area as defined by Section 7(f)(i), in accordance with PA 346 of 1966, Section 11; and WHEREAS, the applicant, ADAC Plastics, meets the definition of an “Eligible Business” as defined by PA 328 of 1998 and is engaged primarily in manufacturing at the location of 1801 E Keating Ave, Muskegon, MI; and WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26, 1983, this Commission by resolution established an Industrial Development District as requested by the City of Muskegon for Port City Industrial Park, including the property owned by ADAC Plastics, 1801 E Keating Ave, Muskegon, Michigan 49442; and WHEREAS, ADAC Plastics has filed an application for Exemption of New Personal Property with respect to new personal property to be installed within said Industrial Development District ; and WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on November 22, 2011, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected taxing units were given written notice and were afforded an opportunity to be heard on said application; and WHEREAS, installation of new machinery and equipment had not begun earlier than six (6) months before November 3, 2011, the date of acceptance of the application for the Exemption of New Personal Property; and WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan that: 1) The Muskegon City Commission finds and determines that the Exemption considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 328 of the Public Act of 1998 as amended and Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon. 2) The application of ADAC Plastics, for the Exemption of New Personal Property with respect to the personal property expansion on the following described parcels of real property situated within the City of Muskegon to wit: Parcel number 61-24-691-000-0015-00 and parcel number 61-24-691-000-0015-10 (they will be combined before commencement and retain the same address, 1801 E Keating Ave) 3) The Exemption of New Personal Property is issued and shall be and remain in force and effect for a period of twelve (12) years on personal property. 2/9/12 Adopted this 22nd Day of November 2011. Ayes: Nays: Absent: BY: __________________________________ Stephen J. Warmington Mayor ATTEST: __________________________________ Ann Cummings Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on November 22, 2011. ______________________________ Ann Cummings Clerk 2/9/12 Glacier Page 1 of 1 Potter, Linda Mike- I am going to need a revised resolution adding the statement about the local units qualification and any other statements in the attached sample resolution that were not a part of the original resolution approved by Muskegon. In the past two years this act has undergone several amendments. The first one added the clause that if an applicant is eligible for MEGA tax credits than the local unit can approve a PA 328 exemption, where previously this was not allowed. The second is the addition of the communities that provide 4 of 6 specific services; fire, water, sewer, police, trash & recycling, and are located in a county bordering Canada or another state can approve PA 328 exemptions. The third addition is that an Aerotropolis or Next Michigan Development Corporation can approve an exemption. Due to these additions to the law we are not requiring the local unit to furnish a statement in the resolution describing how they are eligible to approve these exemptions. Attached is a sample resolution for this program, along with a couple other sample resolutions for your use. Feel free to contact me if you have any questions Heather Cole Department of Treasury Property Services Division P.O. Box 30760 Lansing, MI 48909 coleh2@michigan.gov (517) 373-0675 2/9/2012 Date: February 14, 2012 To: Honorable Mayor and City Commissioners From: Finance RE: Employee Compensation Plan - EVIP SUMMARY OF REQUEST: Under the Economic Vitality Incentive Program (EVIP) adopted by the state last year, the City must meet certain criteria in order to continue receiving the non-constitutional portion of state revenue sharing funds. The first criterion was to prepare and make available a citizen’s guide and performance dashboard by October 1, 2011. The second criterion was to certify to the Michigan Department of Treasury that by January 1, 2012 we have produced and made readily available to the public, a plan with one or more proposals to increase its existing level of cooperation, collaboration, and consolidation, either within the jurisdiction or with other jurisdictions. The third and final criterion is to certify to the Michigan Department of Treasury that by May 1, 2012 we have developed an employee compensation plan, which we intend to implement, with any new, modified, or extended contract or employment agreement, for employees not covered under contract or employment agreement; and that the plan has been made available for public viewing in the clerk’s office or posted on a publicly accessible Internet site. The attached Economic Vitality Incentive Program – Employee Compensation Plan Component is presented for your approval. It shows the specific benefit standards as set by the state EVIP legislation and how the City either has met or intends to meet these standards in future contracts and employment agreements. Once approved by the City Commission, the plan will be submitted to the Michigan Department of Treasury and made available to the public on the City’s website. FINANCIAL IMPACT: Failure to submit the plan to the state could result in the loss of $321,642 - the employee compensation plan portion of the EVIP payment. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Commission approval of the attached plan and authorization for staff to submit the plan to the Michigan Department of Treasury. 1 Michigan Department of Treasury 4888 (07-11) Economic Vitality Incentive Program &HUWL¿FDWLRQ RI (PSOR\HH &RPSHQVDWLRQ Issued under authority of Public Act 63 of 2011. Filing is mandatory to qualify for payments. Each city/village/township applying for Employee Compensation payments must: 1. Certify to the Michigan Department of Treasury (Treasury) that the local unit listed below has developed an employee FRPSHQVDWLRQ SODQ WKDW WKH ORFDO XQLW LQWHQGV WR LPSOHPHQW ZLWK DQ\ QHZ PRGL¿HG RU H[WHQGHG FRQWUDFW RU HPSOR\PHQW agreements for employees not covered under contract or employment agreement. The plan shall be made available for public YLHZLQJ LQ WKH FOHUN¶V RI¿FH RU SRVWHG RQ D SXEOLFO\ DFFHVVLEOH ,QWHUQHW VLWH 2. Submit to Treasury an employee compensation plan. 7KLV FHUWL¿FDWLRQ DORQJ ZLWK WKH HPSOR\HH compensation plan, PXVW EH UHFHLYHG E\ 0D\ RU WKH ¿UVW GD\ RI D SD\PHQW month) in order to qualify for that month’s payment. Post mark dates will not be considered. For questions, call (517) 373-2697. 3$57 /2&$/ 81,7 ,1)250$7,21 Local Unit Name City of Muskegon Local Unit Code Local Unit County 612020 Muskegon Contact Name Contact Telephone Number Bryon L. Mazade (231) 724-6724 3$57 &(57,),&$7,21 ,Q DFFRUGDQFH ZLWK 3XEOLF $FW RI WKH XQGHUVLJQHG KHUHE\ FHUWL¿HV WR 7UHDVXU\ WKDW E\ 0D\ WKH DERYH PHQWLRQHG ORFDO XQLW KDV GHYHORSHG DQ HPSOR\HH FRPSHQVDWLRQ SODQ DQG KDV PDGH WKH SODQ DYDLODEOH IRU SXEOLF YLHZLQJ LQ WKH FOHUN¶V RI¿FH RU SRVWHG RQ D SXEOLFO\ DFFHVVLEOH ,QWHUQHW VLWH 7KH HPSOR\HH FRPSHQVDWLRQ SODQ LV DWWDFKHG WR WKLV VLJQHG FHUWL¿FDWLRQ &KLHI $GPLQLVWUDWLYH 2I¿FHU 6LJQDWXUH DV GH¿QHG LQ 0&/ E Title Date City Manager 2/15/2012 Completed and signed forms (including required attachments) should be e-mailed to: 7UHDV257$#PLFKLJDQJRY If you are unable to submit via e-mail, mail the completed form and required attachments to: Michigan Department of Treasury 2I¿FH RI 5HYHQXH DQG 7D[ $QDO\VLV 32 %R[ Lansing MI 48909 7UHDVXU\ 8VH 2QO\ EVIP Eligible &HUWL¿FDWLRQ 5HFHLYHG EVIP Notes Y N )LQDO &HUWL¿FDWLRQ 3ODQ 5HFHLYHG CITY OF MUSKEGON Economic Vitality Incentive Program Employee Compensation Plan Component Economic Vitality Incentive Program Standards Membership Information (12/31/11) PA 152 For defined benefit pension plans, a maximum multiplier of 1.5% for all New hires who are eligible for retirement Hard Cap Limits: a total amount equal to employees who are eligible for social For defined benefit pension plans, final plans are placed on retirement plans that Health care premium costs for new hires $5,500.00 times the number of employees security benefits, except, where average compensation for all employees is cap annual employer contributions at 10% shall include a minimum employee share of with single person coverage, $11,000.00 postemployment health care is not calculated using a minimum of 3 years of Defined Current Covered By of base salary for employees who are 20%; or, an employer*s share of the local times the number of employees with Defined provided, the maximum multiplier shall be compensation and shall not include more Employee Unit Contribution Total Contract Social eligible for social security benefits. For health care plan costs shall be cost individual and spouse coverage, plus Benefit (DB) 2.25%. For all employees who are not than a total of 240 hours of paid leave. (DC) Expiration Security? employees who are not eligible for social competitive with the new state preferred $15,000.00 times the number of employees eligible for social security benefits, a Overtime hours shall not be used in security benefits, the annual employer provider organization health plan, on a per with family coverage, for a medical benefit maximum multiplier of 2.25%, except, computing the final average compensation contribution is capped at 16.2% of base employee basis. plan coverage year beginning on or after where postemployment health care is not for an employee. salary. January 1, 2012. provided, the maximum multiplier shall be 3.0%. Employees currently have a 2.25% multiplier with Effective 1/1/12, included leave is limited to 240 Social Security coverage and retiree health The City's aggregate healthcare costs are within hours. Effective 1/1/13, overtime is no longer The City's healthcare costs are cost competitive Effective January 1, 2005, new hires go into DC benefits. The City intends to implement either a the "hard cap" limits set by PA 152: $5,062 single included in FAC. FAC is based on 3 consecutive with the new state PPO health plan. Effective 31 6 37 12/31/2013 YES Non-Union plan with maximum 6% employer contribution reduction in multiplier or elimination of retiree coverage; $11,789 double coverage; $13,851 years during which aggregate compensation is 1/1/12, employees contribute 10% of total costs. healthcare at expiration of current employment family coverage. highest. terms. Employees currently have a 2.25% multiplier with Effective 1/1/12, overtime is no longer included in Social Security coverage and retiree health The City's aggregate healthcare costs are within final average compensation and included leave is The City's healthcare costs are cost competitive SEIU Local 517M (Unit 2 - Effective January 1, 2006, new hires go into DC benefits. The City intends to implement either a the "hard cap" limits set by PA 152: $5,062 single limited to 240 hours. FAC is based on 3 with the new state PPO health plan. Effective 47 15 62 12/31/2012 YES plan with maximum 6% employer contribution reduction in multiplier or elimination of retiree coverage; $11,789 double coverage; $13,851 DPW) consecutive years during which aggregate 1/1/12, employees contribute 10% of total costs. healthcare at expiration of current employment family coverage. compensation is highest. contract. Employees currently have a 2.25% multiplier with Effective 1/1/12, overtime is no longer included in Social Security coverage and retiree health The City's aggregate healthcare costs are within final average compensation and included leave is The City's healthcare costs are cost competitive SEIU Local 517M (Clerical Effective January 1, 2006, new hires go into DC benefits. The City intends to implement either a the "hard cap" limits set by PA 152: $5,062 single limited to 240 hours. FAC is based on 3 with the new state PPO health plan. Effective 20 4 24 12/31/2012 YES plan with maximum 6% employer contribution reduction in multiplier or elimination of retiree coverage; $11,789 double coverage; $13,851 Unit) consecutive years during which aggregate 1/1/12, employees contribute 10% of total costs. healthcare at expiration of current employment family coverage. compensation is highest. contract. The City's aggregate healthcare costs are within The City's healthcare costs are cost competitive Effective January 1, 2005, new hires go into DC the "hard cap" limits set by PA 152: $5,062 single N/A - All unit members are DC N/A - All unit members are DC with the new state PPO health plan. Effective 0 1 1 12/31/2013 NO Non-Union Police plan with 10% employer contribution coverage; $11,789 double coverage; $13,851 1/1/12, employees contribute 10% of total costs. family coverage. Employees currently have a 3.00% multiplier with Overtime is currently included in FAC and included retiree health benefits, but no Social Security leave is currently limited to 304 hours. The City The City's aggregate healthcare costs are within N/A Unit has no new hires. All members are The City's healthcare costs are cost competitive coverage. The City intends to implement either a intends to exclude overtime and reduce included the "hard cap" limits set by PA 152: $5,062 single promoted from patrol unit and retain their with the new state PPO health plan. Effective 14 0 14 12/31/2012 NO COAM (Police Command) reduction in multiplier or elimination of retiree leave at expiration of current employment contract. coverage; $11,789 double coverage; $13,851 retirement benefit (either DB or DC) 1/1/12, employees contribute 10% of total costs. healthcare at expiration of current employment FAC is based on 3 consecutive years during which family coverage. contract. aggregate compensation is highest. Employees currently have a 3.00% multiplier with Overtime is currently included in FAC and included retiree health benefits, but no Social Security leave is currently limited to 304 hours. The City The City's healthcare costs are cost competitive The City's aggregate healthcare costs are within Police Officers Labor Council Effective July 28, 2006, new hires go into DC plan coverage. The City intends to implement either a intends to exclude overtime and reduce included with the new state PPO health plan. Effective the "hard cap" limits set by PA 152: $5,062 single 49 11 60 12/31/2011 NO with 10% employer contribution reduction in multiplier or elimination of retiree leave at expiration of current employment contract. 1/1/12, the City will attempt to require employees coverage; $11,789 double coverage; $13,851 (Patrol) healthcare at expiration of current employment FAC is based on 3 consecutive years during which to contribute 10% of total costs. family coverage. contract. aggregate compensation is highest. CITY OF MUSKEGON Economic Vitality Incentive Program Employee Compensation Plan Component Economic Vitality Incentive Program Standards Membership Information (12/31/11) PA 152 For defined benefit pension plans, a maximum multiplier of 1.5% for all New hires who are eligible for retirement Hard Cap Limits: a total amount equal to employees who are eligible for social For defined benefit pension plans, final plans are placed on retirement plans that Health care premium costs for new hires $5,500.00 times the number of employees security benefits, except, where average compensation for all employees is cap annual employer contributions at 10% shall include a minimum employee share of with single person coverage, $11,000.00 postemployment health care is not calculated using a minimum of 3 years of Defined Current Covered By of base salary for employees who are 20%; or, an employer*s share of the local times the number of employees with Defined provided, the maximum multiplier shall be compensation and shall not include more Employee Unit Contribution Total Contract Social eligible for social security benefits. For health care plan costs shall be cost individual and spouse coverage, plus Benefit (DB) 2.25%. For all employees who are not than a total of 240 hours of paid leave. (DC) Expiration Security? employees who are not eligible for social competitive with the new state preferred $15,000.00 times the number of employees eligible for social security benefits, a Overtime hours shall not be used in security benefits, the annual employer provider organization health plan, on a per with family coverage, for a medical benefit maximum multiplier of 2.25%, except, computing the final average compensation contribution is capped at 16.2% of base employee basis. plan coverage year beginning on or after where postemployment health care is not for an employee. salary. January 1, 2012. provided, the maximum multiplier shall be 3.0%. Employees currently have a 2.75% multiplier with Overtime is currently included in FAC and included retiree health benefits, but no Social Security leave is currently limited to 504 hours. The City The City's aggregate healthcare costs are within The City's healthcare costs are cost competitive Effective January 1, 2005, new hires go into DC coverage. The City intends to implement either a intends to exclude overtime and reduce included the "hard cap" limits set by PA 152: $5,062 single with the new state PPO health plan. Effective 31 2 33 12/31/2013 NO IAFF Local 370 (Firefighters) plan with 10% employer contribution reduction in multiplier or elimination of retiree leave at expiration of current employment contract. coverage; $11,789 double coverage; $13,851 1/1/13, employees contribute 10% of total costs. healthcare at expiration of current employment FAC is based on 3 consecutive years during which family coverage. contract. aggregate compensation is highest. Green - City compensation policies currently within EVIP standards Red - City intends to implement changes to bring policies within EVIP standards Blue - EVIP standards not applicable for stated reasons Date: October 25, 2011 To: Honorable Mayor and City Commissioners From: Finance Director RE: First Quarter 2011-12 Budget Reforecast SUMMARY OF REQUEST: At this time staff is transmitting the Second Quarter 2011-12 Budget Reforecast which outlines proposed changes to the original budget that have come about as result of changes in revenue projections, policy priorities, labor contracts, updated economic conditions, or other factors. FINANCIAL IMPACT: Specific proposed changes to the budget include: The projected 2011-12 operating deficit for the General Fund has decreased from $885,728 (original budget) to $234,007. This is primarily due to: o Higher anticipated income tax revenues (+$300,000 from original) and o Higher anticipated state-shared revenues (+490,888 from original) General Fund expenditures have been adjusted slightly and are about 1% higher than originally budgeted. Capital projects have been reforecast based on bid results, grant awards and other factors. Overall capital projects are down from $6.9 million (originally budgeted) to $6.3 million. Mostly this is due to the fact that the Sherman Street (Lincoln to Estes) project has been pushed to next year. BUDGET ACTION REQUIRED: Approval of this budget reforecast constitutes a formal amendment to the City’s 2011-12 budget. STAFF RECOMMENDATION: Approval. COMMITTEE RECOMMENDATION: None. City of Muskegon 2011-12 2Q Reforecast Budget Summary of Budgeted Funds Projected Projected Ending Increase Beginning Fund Fund (Decrease) Fund Balance/Working Projected Projected Balance/Working Balance/Working Capital Revenues Expenditures Capital Capital Fund Name General $ 4,511,382 $ 23,515,986 $ 23,749,993 $ 4,277,375 $ (234,007) 1 Major Streets 566,001 6,637,364 5,203,482 1,999,883 1,433,882 2 Local Streets 663,340 1,340,998 1,555,190 449,148 (214,192) 3 Criminal Forfeitures Fund 140,828 12,500 45,000 108,328 (32,500) 4 Budget Stabilization Fund 1,500,000 - - 1,500,000 - 5 Tree Replacement Fund 5,119 2,050 2,500 4,669 (450) 6 Brownfield Redevelopment Authority Fund 65,349 142,659 191,601 16,407 (48,942) 7 Tax Increment Finance Authority Fund 16,445 53,242 50,000 19,687 3,242 8 Downtown Development Authority Debt Fund 272,145 304,305 329,712 246,738 (25,407) 9 10 Local Development Finance Authority III Fund (SZ) 21,348 258,555 272,697 7,206 (14,142) 11 Arena Improvement 779 48,600 23,400 25,979 25,200 12 Sidewalk Improvement 665,541 90,000 151,705 603,836 (61,705) 13 Public Improvement 551,506 57,500 48,000 561,006 9,500 14 State Grants 237,439 316,000 315,000 238,439 1,000 15 Marina & Launch Ramp 243,852 263,800 202,331 305,321 61,469 16 Public Service Building 268,058 975,340 938,812 304,586 36,528 17 Engineering Services (93,420) 574,516 478,054 3,042 96,462 18 Equipment 2,880,251 2,425,000 3,144,144 2,161,107 (719,144) 19 General Insurance 1,420,174 3,902,164 3,740,320 1,582,018 161,844 20 Sewer 3,320,219 6,155,000 6,029,369 3,445,850 125,631 21 Water 3,585,169 5,717,000 6,619,043 2,683,126 (902,043) Total All Budgeted Funds $ 20,841,525 $ 52,792,580 $ 53,090,353 $ 20,543,752 $ (297,773) Page 1 of 40 CITY OF MUSKEGON GENERAL FUND HISTORICAL SUMMARY Revenues & Expenditures & Fund Balance Year Transfers In Transfers Out at Year-End 2000 $ 23,685,516 $ 22,232,657 $ 2,951,734 2001 23,446,611 23,235,978 3,162,367 2002 23,617,163 23,971,534 2,807,996 2003 23,328,756 23,705,334 2,431,418 2004 23,401,793 23,388,019 2,445,192 2005 23,732,641 23,658,227 2,519,606 2006 24,669,210 24,498,776 2,690,040 2007 25,031,403 24,800,810 2,920,633 2008 25,563,632 26,100,539 2,383,726 2009 24,105,019 24,850,082 1,638,663 2010* 16,142,764 11,742,973 6,038,454 2010-11 24,029,686 25,556,758 4,511,382 Fiscal 2011-12 Budget Summary FUND BALANCE AT START OF YEAR $ 4,511,382 MEANS OF FINANCING: Taxes 14,961,645 63.6% Licenses and Permits 1,119,000 4.8% Federal Grants 169,889 0.7% State Grants 20,000 0.1% State Shared Revenue 3,540,888 15.1% Other Charges 2,320,058 9.9% Interest & Rentals 345,761 1.5% Fines and Fees 472,000 2.0% Other Revenue 466,745 2.0% Other Financing Sources 100,000 0.4% 23,515,986 100.0% ESTIMATED REQUIREMENTS: Customer Value Added Activities 18,087,526 76.2% Business Value Added Activities 4,075,513 17.2% Fixed Budget Items 1,586,954 6.7% 23,749,993 100.0% ESTIMATED FUND BALANCE AT END OF YEAR $ 4,277,375 OPERATING DEFICIT (USE OF FUND BALANCE) $ (234,007) * Six-month transition period to new fiscal year Page 2 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Actual FY2010 (Stub Original Budget Actual to Date 2Q Reforecast % Change Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 From Original Available Fund Balance - BOY $ 1,638,663 $ 6,038,454 $ 4,187,864 $ 4,511,382 $ 4,511,382 Taxes City income tax $ 3,368,057 $ 6,599,753 $ 6,500,000 $ 3,674,512 $ 6,800,000 5% Property taxes - general 6,438,439 6,626,276 6,307,985 544,342 6,307,985 0% Property taxes - sanitation 1,489,136 1,731,364 1,660,197 142,127 1,660,197 0% Industrial facilities taxes 468,369 93,618 93,463 - 93,463 0% Payments in lieu of taxes 91,181 95,402 91,000 - 95,000 4% Delinquent chargeback collected - 17 5,000 3 5,000 0% $ 11,855,182 $ 15,146,430 $ 14,657,645 $ 4,360,984 $ 14,961,645 2% Licenses and permits Business licenses $ 25,934 $ 31,110 $ 28,000 $ 6,597 $ 28,000 0% Liquor licenses 9,945 52,085 46,000 31,300 46,000 0% Temporary Liquor licenses 12,794 9,870 15,000 2,075 15,000 0% Cable TV franchise fees 178,239 362,103 340,000 80,815 360,000 6% Rental property registration 47,367 115,598 120,000 79,195 120,000 0% Burial permits 39,624 93,483 110,000 47,193 110,000 0% Building permits 135,155 255,906 200,000 138,491 200,000 0% Electrical permits 43,576 78,852 75,000 46,698 75,000 0% Plumbing permits 20,254 29,961 30,000 14,798 30,000 0% Mechanical permits 26,204 61,611 60,000 30,981 60,000 0% 75,000 39,638 75,000 0% Vacant building 45,070 89,060 $ 584,162 $ 1,179,639 $ 1,099,000 $ 517,781 $ 1,119,000 2% Federal grants Federal operational grant $ 122,965 $ 192,842 $ 169,889 $ 100,362 $ 169,889 0% $ 122,965 $ 192,842 $ 169,889 $ 100,362 $ 169,889 0% State grants Act 302 police training grant $ 7,805 $ 42,458 $ 20,000 $ 9,477 $ 20,000 0% State operational grant - - - - - - $ 7,805 $ 42,458 $ 20,000 $ 9,477 $ 20,000 0% Page 3 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Actual FY2010 (Stub Original Budget Actual to Date 2Q Reforecast % Change Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 From Original State shared revenue State sales tax - Constitutional $ 1,189,635 $ 2,454,851 $ 2,300,000 $ 897,707 $ 2,575,980 12% State sales tax - Statutory/EVIP 642,431 1,392,008 750,000 321,636 964,908 29% $ 1,832,066 $ 3,846,859 $ 3,050,000 $ 1,219,343 $ 3,540,888 16% Other charges for sales and services Tax administration fees $ 194,131 $ 297,326 $ 289,500 $ 41,126 $ 289,500 0% Utility administration fees 110,000 225,000 225,000 112,500 225,000 0% Reimbursement for elections 79 12,672 15,500 414 15,500 0% Reimbursement for school police officer 13,361 47,440 19,000 4,245 19,000 0% Indirect cost reimbursement 582,084 1,144,020 1,144,018 572,010 1,144,018 0% Site-plan review fee 1,500 2,800 3,000 2,200 3,000 0% Sale of cemetery lots 11,744 29,740 25,000 13,120 25,000 0% Sale of columbarium niches 1,170 2,550 500 78 500 0% Police miscellaneous 17,930 37,113 40,000 15,535 40,000 0% Police impound fees 23,300 39,100 40,000 21,800 42,000 5% 40 - 40 0% Landlord's alert fee 155 40 Fire protection-state property 35,212 120,210 80,000 60,163 80,000 0% Zoning fees 3,290 6,158 8,000 7,240 10,000 25% Clerk fees 197 2,039 3,500 598 3,500 0% Clerk - passport fees 3,555 4,115 5,000 1,370 3,000 -40% Tax abatement application fees - 810 2,000 3,139 4,000 100% Lien Look-ups 12,920 14,455 15,000 8,180 15,000 0% Treasurer fees 49,603 45,903 50,000 3,830 50,000 0% False alarm fees 6,125 12,960 13,000 6,735 13,000 0% Miscellaneous cemetery income 6,571 20,398 18,000 52,280 63,000 250% 5,766 11,000 22% Senior transit program fees 5,082 10,401 9,000 Fire miscellaneous 560 4,985 2,000 603 2,000 0% Sanitation stickers 38,809 79,762 80,000 34,180 80,000 0% Lot cleanup fees (trash) 18,348 29,493 50,000 14,322 30,000 -40% Reimbursements for mowing and demolitions 20,102 49,760 50,000 33,106 50,000 0% Special events reimbursements 30,546 104,937 100,000 93,402 100,000 0% Recreation program fees 19,753 20,831 - 1,595 2,000 - $ 1,206,127 $ 2,365,018 $ 2,287,058 $ 1,109,537 $ 2,320,058 1% Page 4 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Actual FY2010 (Stub Original Budget Actual to Date 2Q Reforecast % Change Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 From Original Interest and rental income Interest $ (2,349) $ 85,120 $ 50,000 $ 46,337 $ 90,000 80% Procurement Card Rebate - 33,668 45,000 - 45,000 0% Fire Station Lease - Central Dispatch 20,879 47,895 42,000 19,415 42,000 0% Naval Musem Property Rental - 2,500 5,000 5,000 5,000 0% Flea market 11,346 27,233 29,000 29,335 30,000 3% Farmers market 18,484 43,471 35,000 16,892 35,000 0% City hall rental 1,200 7,200 7,200 3,600 7,200 0% City right of way rental 6,800 6,800 8,561 - 8,561 0% McGraft park rentals 13,844 52,475 45,000 3,195 45,000 0% Other park rentals 22,133 49,525 38,000 12,386 38,000 0% $ 304,761 $ 136,160 $ 345,761 13% $ 92,337 $ 355,887 Fines and fees Income tax - penalty and interest $ 109,441 $ 156,339 $ 180,000 $ 94,123 $ 180,000 0% Late fees on current taxes 42,766 30,875 40,000 - 40,000 0% Interest on late invoices 247 2,011 2,000 1,669 2,000 0% Parking fines 71,160 100,885 125,000 50,040 110,000 -12% Court fines 72,929 142,764 170,000 48,066 140,000 -18% $ 296,543 $ 432,874 $ 517,000 $ 193,898 $ 472,000 -9% Other revenue Sale of land and assets $ 500 $ - $ 1,000 $ 4,010 $ 5,000 400% Police sale and auction proceeds 1,823 - - - 4,100 - CDBG program reimbursements 48,030 324,393 382,870 81,385 382,870 0% Sanitation reimbursements 43,030 - - - - - Contributions 19,740 12,455 11,000 (559) 11,000 0% Contributions - Veteran's Park Maintenance - 19,402 19,500 1,234 19,500 0% Fisherman's Landing Repayment - 16,106 14,500 16,775 16,775 16% Darl & Kathleen Staley Trust - - - - - - Muskegon County Community Foundation 2,394 12,005 1,500 - 1,500 0% Miscellaneous reimbursements - - 1,000 - 1,000 0% 25,000 4,751 25,000 0% Miscellaneous and sundry 2,873 5,961 $ 118,390 $ 390,322 $ 456,370 $ 107,596 $ 466,745 2% Page 5 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - General Fund Actual FY2010 (Stub Original Budget Actual to Date 2Q Reforecast % Change Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 From Original Other financing sources Operating transfers in Cemetery Perpetual Care $ 2,187 $ 2,357 $ 50,000 $ 549 $ 50,000 0% General Insurance Fund - - - - - - LDFA Fund - - - - - - Budget Stabilization Fund - - - - - - TIFA Fund (Arena Operations) 25,000 75,000 50,000 25,000 50,000 0% $ 27,187 $ 77,357 $ 100,000 $ 25,549 $ 100,000 0% Total general fund revenues and other sources $ 16,142,764 $ 24,029,686 $ 22,661,723 $ 7,780,687 $ 23,515,986 4% Page 6 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original I. Customer Value Added Activities 40301 Police Department 5100 Salaries & Benefits $ 3,770,931 $ 7,675,922 $ 7,836,965 $ 3,969,380 $ 7,836,965 51% 0% 5200 Operating Supplies 28,819 70,082 90,000 38,893 90,000 43% 0% 5300 Contractual Services 465,614 897,777 820,024 432,748 820,024 53% 0% 5400 Other Expenses 4,773 15,826 16,000 12,875 16,000 80% 0% 5700 Capital Outlays 19,632 31,331 15,000 2,428 15,000 16% 0% 5900 Other Financing Uses - - - - - N/A - $ 4,289,769 $ 8,690,938 $ 8,777,989 $ 4,456,324 $ 8,777,989 51% 0% $ 4,289,769 $ 8,690,938 $ 8,777,989 $ 4,456,324 $ 8,777,989 51% 0% 50336 Fire Department 5100 Salaries & Benefits $ 1,687,648 $ 3,355,077 $ 3,191,899 $ 1,867,813 $ 3,191,899 59% 0% 5200 Operating Supplies 37,904 85,462 116,500 28,186 116,500 24% 0% 5300 Contractual Services 95,652 173,320 149,861 60,009 149,861 40% 0% 5400 Other Expenses 1,751 1,597 4,000 - 4,000 0% 0% 5700 Capital Outlays 37,389 95,925 60,000 23,631 60,000 39% 0% 5900 Other Financing Uses - - - - - N/A - $ 1,860,344 $ 3,711,381 $ 3,522,260 $ 1,979,639 $ 3,522,260 56% 0% 50387 Fire Safety Inspections 5100 Salaries & Benefits $ 319,970 $ 535,750 $ 464,680 $ 237,618 $ 464,680 51% 0% 5200 Operating Supplies 5,391 11,469 10,000 2,973 10,000 30% 0% 5300 Contractual Services 44,782 103,147 108,040 17,990 108,040 17% 0% 5400 Other Expenses 1,867 6,042 10,000 3,195 10,000 32% 0% 5700 Capital Outlays - - 2,000 1,708 2,000 85% 0% 5900 Other Financing Uses - - - - - N/A - $ 372,010 $ 656,408 $ 594,720 $ 263,484 $ 594,720 44% 0% $ 2,232,354 $ 4,367,789 $ 4,116,980 $ 2,243,123 $ 4,116,980 54% 0% 60523 General Sanitation 5100 Salaries & Benefits $ 15,240 $ 67,009 $ 30,000 $ 15,922 $ 30,000 53% 0% 5200 Operating Supplies - 16 - - - N/A - 5300 Contractual Services 774,346 1,542,755 1,650,000 665,709 1,650,000 40% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses 100,000 200,000 200,000 100,000 200,000 50% 0% Page 7 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original $ 889,586 $ 1,809,780 $ 1,880,000 $ 781,631 $ 1,880,000 42% 0% 60550 Stormwater Management 5100 Salaries & Benefits $ - $ - $ - $ - $ - N/A - 5200 Operating Supplies - - - - - N/A - 5300 Contractual Services 4,000 17,029 17,786 - 17,786 0% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 4,000 $ 17,029 $ 17,786 $ - $ 17,786 0% 0% 60448 Streetlighting 5100 Salaries & Benefits $ - $ 224 $ - $ - $ - N/A - 5200 Operating Supplies - - - - - N/A - 5300 Contractual Services 395,257 784,081 750,000 323,152 775,000 42% 3% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - 10,000 - 10,000 0% 0% 5900 Other Financing Uses - - - - - N/A - $ 395,257 $ 784,305 $ 760,000 $ 323,152 $ 785,000 41% 3% 60707 Senior Citizen Transit 5100 Salaries & Benefits $ 26,539 $ 57,941 $ 58,678 $ 35,200 $ 66,700 53% 14% 5200 Operating Supplies - - - - - N/A - 5300 Contractual Services 5,360 10,400 10,400 5,200 10,400 50% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 31,899 $ 68,341 $ 69,078 $ 40,400 $ 77,100 52% 12% 60446 Community Event Support 5100 Salaries & Benefits $ 9,362 $ 11,381 $ 10,000 $ 10,589 $ 13,000 81% 30% 5200 Operating Supplies 190 644 1,100 58 1,100 5% 0% 5300 Contractual Services 5,008 8,180 12,500 3,650 12,500 29% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 14,560 $ 20,205 $ 23,600 $ 14,297 $ 26,600 54% 13% 70751 Parks Maintenance 5100 Salaries & Benefits $ 191,755 $ 357,563 $ 387,222 $ 190,441 $ 387,222 49% 0% 5200 Operating Supplies 23,213 53,777 93,850 34,233 93,850 36% 0% 5300 Contractual Services 279,987 556,578 646,785 329,316 646,785 51% 0% 5400 Other Expenses 175 20 - 21 100 21% - 5700 Capital Outlays - 11,090 11,000 50 11,000 0% 0% Page 8 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original 5900 Other Financing Uses - - - - - N/A - $ 495,130 $ 979,028 $ 1,138,857 $ 554,061 $ 1,138,957 49% 0% 70757 Mc Graft Park Maintenance 5100 Salaries & Benefits $ 4,674 $ 6,412 $ 6,551 $ 4,347 $ 6,551 66% 0% 5200 Operating Supplies 1,130 3,547 1,400 1,773 2,000 89% 43% 5300 Contractual Services 8,593 37,173 35,700 8,334 35,700 23% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 14,397 $ 47,132 $ 43,651 $ 14,454 $ 44,251 33% 1% 70276 Cemeteries Maintenance 5100 Salaries & Benefits $ 87,040 $ 112,101 $ 108,948 $ 52,344 $ 108,948 48% 0% 5200 Operating Supplies 569 4,882 6,750 2,825 6,750 42% 0% 5300 Contractual Services 96,313 210,640 244,824 148,770 244,824 61% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays 72 8,383 - 42 100 42% - 5900 Other Financing Uses - - - - - N/A - $ 183,994 $ 336,006 $ 360,522 $ 203,981 $ 360,622 57% 0% 70585 Parking Operations 5100 Salaries & Benefits $ 501 $ 1,748 $ - $ 173 $ 200 87% - 5200 Operating Supplies - 274 - - - N/A - 5300 Contractual Services 1,944 5,182 3,000 1,209 3,000 40% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 2,445 $ 7,204 $ 3,000 $ 1,382 $ 3,200 43% 7% 70357 Graffiti Removal 5100 Salaries & Benefits $ 1,445 $ 2,659 $ - $ 2,713 $ 3,000 90% - 5200 Operating Supplies 618 465 - 398 500 80% - 5300 Contractual Services 391 123 4,861 170 4,861 3% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 2,454 $ 3,247 $ 4,861 $ 3,281 $ 8,361 39% 72% 70863 Farmers' Market & Flea Market 5100 Salaries & Benefits $ 7,850 $ 17,869 $ 22,240 $ 13,998 $ 22,240 63% 0% 5200 Operating Supplies 2,085 1,802 1,800 418 1,800 23% 0% 5300 Contractual Services 8,181 31,538 29,950 19,202 29,950 64% 0% 5400 Other Expenses 50 - 100 20 100 20% 0% Page 9 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original 5700 Capital Outlays 1,326 - 6,000 294 6,000 5% 0% 5900 Other Financing Uses - - - - - N/A - $ 19,492 $ 51,209 $ 60,090 $ 33,932 $ 60,090 56% 0% $ 2,053,214 $ 4,123,486 $ 4,361,445 $ 1,970,571 $ 4,401,967 45% 1% 70775 General Recreation 5100 Salaries & Benefits $ 57,201 $ 21,202 $ - $ - $ - N/A - 5200 Operating Supplies 4,816 633 - 230 500 46% - 5300 Contractual Services 26,070 61,387 96,000 51,562 96,000 54% 0% 5400 Other Expenses 708 - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 88,795 $ 83,222 $ 96,000 $ 51,792 $ 96,500 54% 1% 80387 Environmental Services 5100 Salaries & Benefits $ 69,234 $ 218,388 $ 335,466 $ 172,517 $ 335,466 51% 0% 5200 Operating Supplies 4,905 6,529 7,300 3,659 7,300 50% 0% 5300 Contractual Services 89,930 185,550 185,000 127,095 185,000 69% 0% 5400 Other Expenses - 35 1,000 145 1,000 15% 0% 5700 Capital Outlays 2,051 1,281 3,500 293 3,500 8% 0% 5900 Other Financing Uses - - - - - N/A - $ 166,120 $ 411,783 $ 532,266 $ 303,709 $ 532,266 57% 0% $ 254,915 $ 495,005 $ 628,266 $ 355,501 $ 628,766 57% 0% 10875 Other - Contributions to Outside Agencies $ 40,082 $ 80,164 80,164 $ 40,082 $ Muskegon Area Transit (MATS) $ 80,164 50% 0% 20,803 20,272 21,000 - 21,000 Neighborhood Association Grants 0% 0% 17,784 45,660 45,660 22,782 45,660 Muskegon Area First 50% 0% 7,357 7,000 7,000 - 7,000 Veterans Memorial Day Costs 0% 0% 5,000 - - - - Mainstreet N/A - 2,500 2,500 2,500 - 2,500 Lakeside Business District 0% 0% 2,500 2,500 2,500 - 2,500 211 Service 0% 0% - - - - - Gypsy Moth Program N/A - - 1,000 1,000 - 1,000 Consolidation Feasibility Study 0% 0% - 1,000,000 - - - MERS Supplemental Contribution N/A - 1,000 1,000 1,000 - 1,000 MLK Diversity Program 0% 0% 1,000 1,000 1,000 - 1,000 Muskegon Area Labor Management (MALMC) 0% 0% - 6,200 - - - Muskegon County and Humane Society - Feral Cats N/A - - - - - - Other N/A - Contributions To Outside Agencies $ 98,026 $ 1,167,296 $ 161,824 $ 62,864 $ 161,824 39% 0% $ 98,026 $ 1,167,296 $ 161,824 $ 62,864 $ 161,824 39% 0% Page 10 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original Total Customer Value Added Activities $ 8,928,278 $ 18,844,514 $ 18,046,504 $ 9,088,383 $ 18,087,526 50% 0% As a Percent of Total General Fund Expenditures 76.0% 73.7% 76.6% 77.4% 76.2% II. Business Value Added Activities 10101 City Commission 5100 Salaries & Benefits $ 33,837 $ 64,864 $ 67,652 $ 35,800 $ 67,652 53% 0% 5200 Operating Supplies 8,205 15,142 12,300 6,828 12,300 56% 0% 5300 Contractual Services 1,407 1,594 1,800 1,956 2,000 98% 11% 5400 Other Expenses 675 1,347 2,000 183 2,000 9% 0% 5700 Capital Outlays 600 1,199 1,200 2,950 5,000 59% 317% 5900 Other Financing Uses - - - - - N/A - $ 44,724 $ 84,146 $ 84,952 $ 47,717 $ 88,952 54% 5% 10102 City Promotions & Public Relations 5100 Salaries & Benefits $ - $ - $ - $ - $ - N/A - 5200 Operating Supplies 163 411 - 460 500 92% - 5300 Contractual Services 2,881 3,780 11,350 3,113 11,350 27% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 3,044 $ 4,191 $ 11,350 $ 3,573 $ 11,850 30% 4% 10172 City Manager 5100 Salaries & Benefits $ 136,667 $ 253,954 $ 257,366 $ 130,415 $ 257,366 51% 0% 5200 Operating Supplies 1,086 1,338 2,000 180 2,000 9% 0% 5300 Contractual Services 4,873 8,174 7,750 2,712 7,750 35% 0% 5400 Other Expenses 252 944 2,000 1,004 2,000 50% 0% 5700 Capital Outlays - - 1,000 45 1,000 5% 0% 5900 Other Financing Uses - - - - - N/A - $ 142,878 $ 264,410 $ 270,116 $ 134,356 $ 270,116 50% 0% 10145 City Attorney 5100 Salaries & Benefits $ - $ - $ - $ - $ - N/A - 5200 Operating Supplies 808 808 2,000 - 2,000 0% 0% 5300 Contractual Services 159,223 331,067 320,508 138,683 320,508 43% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - Page 11 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original 5900 Other Financing Uses - - - - - N/A - $ 160,031 $ 331,875 $ 322,508 $ 138,683 $ 322,508 43% 0% $ 350,677 $ 684,622 $ 688,926 $ 324,329 $ 693,426 47% 1% 20228 Affirmative Action 5100 Salaries & Benefits $ 39,129 $ 78,270 $ 80,535 $ 42,837 $ 80,535 53% 0% 5200 Operating Supplies 169 324 750 88 750 12% 0% 5300 Contractual Services 660 1,587 2,027 669 2,027 33% 0% 5400 Other Expenses - 50 1,000 84 1,000 8% 0% 5700 Capital Outlays - - 500 - 500 0% 0% 5900 Other Financing Uses - - - - - N/A - $ 39,958 $ 80,231 $ 84,812 $ 43,678 $ 84,812 51% 0% 20215 City Clerk & Elections 5100 Salaries & Benefits $ 103,016 $ 244,239 $ 237,997 $ 122,564 $ 237,997 51% 0% 5200 Operating Supplies 8,815 18,702 34,934 6,942 34,934 20% 0% 5300 Contractual Services 9,938 16,625 14,750 3,339 14,750 23% 0% 5400 Other Expenses 1,113 473 1,500 688 1,500 46% 0% 5700 Capital Outlays 866 6,011 1,000 - 1,000 0% 0% 5900 Other Financing Uses - - - - - N/A - $ 123,748 $ 286,050 $ 290,181 $ 133,533 $ 290,181 46% 0% 20220 Civil Service 5100 Salaries & Benefits $ 85,667 $ 107,949 $ - $ 5,961 $ 5,961 100% - 5200 Operating Supplies 1,099 1,626 - 1,015 1,015 100% - 5300 Contractual Services 3,425 12,707 90,000 23,425 90,000 26% 0% 5400 Other Expenses 697 3,768 - 2,418 2,500 97% - 5700 Capital Outlays 572 - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 91,460 $ 126,050 $ 90,000 $ 32,819 $ 99,476 33% 11% $ 255,166 $ 492,331 $ 464,993 $ 210,030 $ 474,469 44% 2% 30202 Finance Administration 5100 Salaries & Benefits $ 172,829 $ 333,061 $ 342,702 $ 189,773 $ 291,773 65% -15% 5200 Operating Supplies 1,392 3,571 4,700 1,477 4,700 31% 0% 5300 Contractual Services 59,515 73,010 66,275 50,741 113,275 45% 71% 5400 Other Expenses 65 1,193 1,000 1,267 1,500 84% 50% 5700 Capital Outlays 51 1,716 3,000 2,769 3,000 92% 0% 5900 Other Financing Uses - - - - - N/A - $ 233,852 $ 412,551 $ 417,677 $ 246,027 $ 414,248 59% -1% 30209 Assessing Services Page 12 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original 5100 Salaries & Benefits $ 2,423 $ 3,367 $ 7,308 $ 929 $ 7,308 13% 0% 5200 Operating Supplies - - - - - N/A - 5300 Contractual Services 237,713 416,781 344,367 226,773 394,367 58% 15% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - - - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 240,136 $ 420,148 $ 351,675 $ 227,702 $ 401,675 57% 14% 30805 Arena Administration 5100 Salaries & Benefits $ - $ - $ - $ - $ - N/A - 5200 Operating Supplies - - - - - N/A - 5300 Contractual Services 101,867 241,263 235,000 195,833 235,000 83% 0% 5400 Other Expenses - - - - - N/A - 5700 Capital Outlays - 1,661 - - - N/A - 5900 Other Financing Uses - - - - - N/A - $ 101,867 $ 242,924 $ 235,000 $ 195,833 $ 235,000 83% 0% 30205 Income Tax Administration 5100 Salaries & Benefits $ 167,338 $ 321,985 $ 331,478 $ 175,902 $ 331,478 53% 0% 5200 Operating Supplies 9,250 12,486 12,160 3,193 12,160 26% 0% 5300 Contractual Services 41,158 65,773 77,550 30,456 77,550 39% 0% 5400 Other Expenses 75 488 800 514 800 64% 0% 5700 Capital Outlays - 7,175 2,500 57 2,500 2% 0% 5900 Other Financing Uses - - - - - N/A - $ 217,821 $ 407,907 $ 424,488 $ 210,122 $ 424,488 50% 0% 30253 City Treasurer 5100 Salaries & Benefits $ 160,099 $ 312,621 $ 323,707 $ 167,209 $ 323,707 52% 0% 5200 Operating Supplies 32,047 65,024 50,000 26,275 50,000 53% 0% 5300 Contractual Services 58,329 108,627 85,000 44,551 85,000 52% 0% 5400 Other Expenses 462 715 1,500 48 1,500 3% 0% 5700 Capital Outlays - 5,198 2,921 296 2,921 10% 0% 5900 Other Financing Uses - - - - - N/A - $ 250,937 $ 492,185 $ 463,128 $ 238,379 $ 463,128 51% 0% 30248 Information Systems Administration 5100 Salaries & Benefits $ 148,629 $ 286,590 $ 294,686 $ 148,793 $ 294,686 50% 0% 5200 Operating Supplies - 143 1,788 174 1,788 10% 0% 5300 Contractual Services 35,595 46,281 54,992 4,216 54,992 8% 0% 5400 Other Expenses 149 5,356 8,000 - 8,000 0% 0% 5700 Capital Outlays 12,443 38,626 32,250 13,234 32,250 41% 0% 5900 Other Financing Uses - - - - - N/A - $ 196,816 $ 376,996 $ 391,716 $ 166,417 $ 391,716 42% 0% $ 1,241,429 $ 2,352,711 $ 2,283,684 $ 1,284,480 $ 2,330,255 55% 2% Page 13 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original 60265 City Hall Maintenance 5100 Salaries & Benefits $ 37,746 $ 39,749 $ 35,777 $ 18,420 $ 35,777 51% 0% 5200 Operating Supplies 5,110 9,285 15,525 4,301 15,525 28% 0% 5300 Contractual Services 93,479 186,687 222,000 76,571 222,000 34% 0% 5400 Other Expenses - 13 - 191 300 64% - 5700 Capital Outlays 100 7,848 3,590 3,915 4,500 87% 25% 5900 Other Financing Uses - - - - - N/A - $ 136,435 $ 243,582 $ 276,892 $ 103,398 $ 278,102 37% 0% $ 136,435 $ 243,582 $ 276,892 $ 103,398 $ 278,102 37% 0% 80400 Planning, Zoning and Economic Development 5100 Salaries & Benefits $ 183,633 $ 334,910 $ 268,361 $ 138,827 $ 268,361 52% 0% 5200 Operating Supplies 1,525 3,766 4,600 1,272 4,600 28% 0% 5300 Contractual Services 17,389 (6,463) 20,300 7,263 20,300 36% 0% 5400 Other Expenses 867 958 4,000 662 4,000 17% 0% 5700 Capital Outlays - 439 2,000 - 2,000 0% 0% 5900 Other Financing Uses - - - - - N/A - $ 203,414 $ 333,610 $ 299,261 $ 148,024 $ 299,261 49% 0% $ 203,414 $ 333,610 $ 299,261 $ 148,024 $ 299,261 49% 0% Total Business Value Added Activities $ 2,187,121 $ 4,106,856 $ 4,013,756 $ 2,070,261 $ 4,075,513 51% 2% As a Percent of Total General Fund Expenditures 18.6% 16.1% 17.0% 17.6% 17.2% 0.7% III. Fixed Budget Items 30999 Transfers To Other Funds Major Street Fund $ - $ - $ - $ - $ - N/A - Local Street Fund 140,000 280,000 280,000 190,000 280,000 68% 0% Engineering - - - 75,000 75,000 100% - Sidewalk - 100,000 - - - N/A - Arena Maintenance - 6,000 - - - N/A - State Grants - 34,675 - - - N/A - LDFA Debt Service Fund (Smartzone) 50,000 100,000 100,000 - 100,000 0% 0% General Insurance 14,023 28,046 28,046 14,023 28,046 50% 0% $ 204,023 $ 548,721 $ 408,046 $ 279,023 $ 483,046 58% 18% - Page 14 of 40 Annual Budget & Quarterly Budget Reforecast - General Fund General Fund Expenditure Summary By Function Actual As % Change Actual FY2010 Original Budget Actual to Date 2Q Reforecast % of From (Stub Year) Actual FY2011 Estimate FY2012 FY2012 FY2012 Revised Original 30851 General Insurance $ 133,527 $ 259,907 $ 275,000 $ - $ 275,000 0% 0% 30906 Debt Retirement 109,174 1,252,795 281,145 176,478 281,145 63% 0% 10891 Contingency and Bad Debt Expense 68,471 515,238 250,000 - 250,000 0% 0% 90000 Major Capital Improvements 112,379 28,727 273,000 121,613 297,763 41% 9% Total Fixed-Budget Items $ 627,574 $ 2,605,388 $ 1,487,191 $ 577,114 $ 1,586,954 36% 7% As a Percent of Total General Fund Expenditures 5.3% 10.2% 6.3% 4.9% 6.7% Total General Fund $ 11,742,973 $ 25,556,758 $ 23,547,451 $ 11,735,758 $ 23,749,993 49% 1% Recap: Total General Fund By Expenditure Object 5100 Salaries & Benefits $ 7,520,403 $ 14,822,805 $ 14,700,218 $ 7,750,485 $ 14,669,472 53% 0% 5200 Operating Supplies 179,309 372,208 469,457 165,851 472,572 35% 1% 5300 Contractual Services 3,428,904 8,074,794 7,005,224 3,067,281 7,127,424 43% 2% 5400 Other Expenses 13,679 38,825 52,900 23,315 56,300 41% 6% 5700 Capital Outlays 187,481 246,610 430,461 173,325 460,034 38% 7% 5900 All Other Financing Uses 413,197 2,001,516 889,191 555,501 964,191 58% 8% Total General Fund $ 11,742,973 $ 25,556,758 $ 23,547,451 $ 11,735,758 $ 23,749,993 49% 1% Page 15 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 202 Major Streets and State Trunklines Fund $ 284,912 $ 272,846 $ 359,157 Available Fund Balance - BOY $ 481,059 $ 566,001 $ 566,001 Means of Financing Special assessments $ 233,007 $ 10,818 $ 172,302 $ 175,000 $ - $ 175,000 Federal & state grants 1,593,425 9,443 1,457,137 2,131,000 - 1,936,000 State shared revenue 2,558,600 1,280,364 2,704,187 2,481,364 1,086,667 2,481,364 Interest income 50,177 44,302 36,626 25,000 3,249 25,000 Operating transfers in 200,000 - - - - - Other 45,384 8,353 415,620 PROPOSED BOND FOR GRANT MATCHE 2,040,000 2,001,526 2,020,000 $ 4,680,593 $ 1,353,280 $ 4,785,872 $ 6,852,364 $ 3,091,442 $ 6,637,364 60900 Operating Expenditures 5100 Salaries & Benefits $ 629,511 $ 278,560 $ 622,597 35% $ 839,936 $ 296,262 $ 839,936 5200 Operating Supplies 225,883 196,491 231,295 20% 240,600 48,156 240,600 5300 Contractual Services 946,059 533,999 957,051 36% 1,039,946 379,368 1,039,946 5400 Other Expenses 3,354 995 37,904 54% 1,000 540 1,000 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses - 100,000 400,000 0% 40,000 - 25,000 $ 1,804,807 $ 1,110,045 $ 2,248,847 34% $ 2,161,482 $ 724,326 $ 2,146,482 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - SEE "BUDGETED CAPITAL 5300 Contractual Services 2,887,852 156,924 2,330,181 36% 3,915,000 1,106,311 3,057,000 IMPROVEMENTS" FOR DETAIL 5700 Capital Outlays - - - N/A - - - $ 2,887,852 $ 156,924 $ 2,330,181 36% $ 3,915,000 $ 1,106,311 $ 3,057,000 $ 4,692,659 $ 1,266,969 $ 4,579,028 35% $ 6,076,482 $ 1,830,637 $ 5,203,482 $ 272,846 $ 359,157 $ 566,001 Available Fund Balance - EOY $ 1,256,941 $ 1,826,806 $ 1,999,883 Page 16 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 203 Local Streets Fund $ 396,406 $ 134,437 $ 180,480 Available Fund Balance - BOY $ 387,904 $ 663,340 $ 663,340 Means of Financing Special assessments $ 92,657 $ 31,887 $ 138,025 $ 75,000 $ - $ 75,000 Federal & state grants 215,000 - - - - 20,000 Metro act fees 145,169 148,668 136,731 145,000 - 145,000 State shared revenue 619,263 312,201 624,694 585,998 264,321 585,998 Interest income 20,955 22,171 29,411 20,000 1,850 20,000 Operating transfers in 512,624 340,000 880,000 480,000 FROM GENERAL FUND 480,000 240,000 Other 2,667 41,285 197,011 15,000 277 15,000 $ 1,608,335 $ 896,212 $ 2,005,872 $ 1,320,998 $ 506,448 $ 1,340,998 60900 Operating Expenditures 5100 Salaries & Benefits $ 661,735 $ 321,827 $ 516,349 44% $ 478,203 $ 211,995 $ 478,203 5200 Operating Supplies 135,883 41,694 115,192 23% 118,000 27,471 118,000 5300 Contractual Services 773,321 437,800 704,173 31% 879,687 274,816 879,687 5400 Other Expenses 242 2,198 2,669 76% 100 1,510 2,000 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses - - - N/A - - - $ 1,571,181 $ 803,519 $ 1,338,383 35% $ 1,475,990 $ 515,792 $ 1,477,890 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - SEE "BUDGETED CAPITAL 5300 Contractual Services 299,123 46,650 184,629 105% 55,000 81,180 77,300 IMPROVEMENTS" FOR DETAIL $ 299,123 $ 46,650 $ 184,629 105% $ 55,000 $ 81,180 $ 77,300 $ 1,870,304 $ 850,169 $ 1,523,012 38% $ 1,530,990 $ 596,972 $ 1,555,190 $ 134,437 $ 180,480 $ 663,340 Available Fund Balance - EOY $ 177,912 $ 572,816 $ 449,148 Page 17 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 257 Budget Stabilization Fund $ 2,000,000 $ 1,500,000 $ 1,500,000 Available Fund Balance - BOY $ 1,500,000 $ 1,500,000 $ 1,500,000 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services - - - - - - Interest income - - - - - - Operating transfers in - General Fund - - - - - - Operating transfers in - TIFA Fund - - - - - - Operating transfers in - Insurance Fund - - - - - - Other - - - - - - $ - $ - $ - $ - $ - $ - 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services - - - N/A - - - 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses 500,000 - - N/A - - - $ 500,000 $ - $ - N/A $ - $ - $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 500,000 $ - $ - N/A $ - $ - $ - $ 1,500,000 $ 1,500,000 $ 1,500,000 Available Fund Balance - EOY $ 1,500,000 $ 1,500,000 $ 1,500,000 Page 18 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 264 Criminal Forfeitures Fund $ 81,856 $ 140,640 $ 134,116 Available Fund Balance - BOY $ 104,716 $ 140,828 $ 140,828 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services - - - - - - Interest income 881 615 688 500 409 500 Operating transfers in - General Fund - - - - - - Operating transfers in - TIFA Fund - - - - - - Operating transfers in - Insurance Fund - - - - - - Other 62,406 500 14,380 10,000 10,824 12,000 $ 63,287 $ 1,115 $ 15,068 $ 10,500 $ 11,233 $ 12,500 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services - - - 7% 45,000 3,000 45,000 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays 4,503 7,639 8,356 N/A - - - 5900 Other Financing Uses - - - N/A - - - $ 4,503 $ 7,639 $ 8,356 7% $ 45,000 $ 3,000 $ 45,000 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 4,503 $ 7,639 $ 8,356 7% $ 45,000 $ 3,000 $ 45,000 $ 140,640 $ 134,116 $ 140,828 Available Fund Balance - EOY $ 70,216 $ 149,061 $ 108,328 Page 19 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 285 Tree Replacement Fund $ 10,043 $ 8,590 $ 5,436 Available Fund Balance - BOY $ 3,486 $ 5,119 $ 5,119 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - 2,000 - 2,000 State shared revenue - - - - - - Charges for services - - - - - - Interest income 73 46 24 50 13 50 Operating transfers in - General Fund - - - - - - Operating transfers in - TIFA Fund - - - - - - Operating transfers in - Insurance Fund - - - - - - Other 1,600 - - - - - $ 1,673 $ 46 $ 24 $ 2,050 $ 13 $ 2,050 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies 3,126 3,200 341 84% 2,000 2,111 2,500 5300 Contractual Services - - - N/A - - - 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses - - - N/A - - - $ 3,126 $ 3,200 $ 341 84% $ 2,000 $ 2,111 $ 2,500 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 3,126 $ 3,200 $ 341 84% $ 2,000 $ 2,111 $ 2,500 $ 8,590 $ 5,436 $ 5,119 Available Fund Balance - EOY $ 3,536 $ 3,021 $ 4,669 Page 20 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 295 Brownfield Redevelopment Authority (Betten Project) $ (17,862) $ (10,214) $ (9,217) $ Available Fund Balance - BOY 316 $ 65,349 $ 65,349 Means of Financing Property taxes $ 9,951 $ 15,917 $ 74,483 $ 142,409 $ - $ 142,409 Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services - - - - - - Interest income - - 83 - 105 250 Operating transfers in - General Fund - - - - - - Operating transfers in - TIFA Fund - - - - - - Operating transfers in - Insurance Fund - - - - - - Other - - - - - - $ 9,951 $ 15,917 $ 74,566 $ 142,409 $ 105 $ 142,659 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services 2,303 14,920 - 24% 100,000 29,605 125,000 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses - - - 0% 66,601 BROWNFIELD LOAN PAYMENT/ADMIN FE 33,424 - $ 2,303 $ 14,920 $ - 15% $ 133,424 $ 29,605 $ 191,601 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 2,303 $ 14,920 $ - 15% $ 133,424 $ 29,605 $ 191,601 $ (10,214) $ (9,217) $ 65,349 Available Fund Balance - EOY $ 9,301 $ 35,849 $ 16,407 Page 21 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 290 Local Development Finance Authority III Fund - Edison Landing (Smartzone) $ 8,752 $ 13,765 $ 36,834 Available Fund Balance - BOY $ 20,994 $ 21,348 $ 21,348 Means of Financing Property taxes $ 91,281 $ 71,360 $ 84,658 $ 83,405 $ - $ 83,405 Federal & state grants - - 100,000 - - - State shared revenue - - - - - - Charges for services - - - - - - Interest income 180 133 153 150 47 150 Operating transfers in - General Fund 120,000 50,000 75,000 100,000 50,000 100,000 COMMUNITY FOUNDATION Other 75,000 - - 75,000 75,000 75,000 CONTRIBUTION $ 286,461 $ 121,493 $ 259,811 $ 258,555 $ 125,047 $ 258,555 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services 1,700 - - 0% 500 - 500 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses 279,748 98,424 275,297 57% 272,197 DEBT SERVICE SZ BONDS 272,197 154,423 $ 281,448 $ 98,424 $ 275,297 57% $ 272,697 $ 154,423 $ 272,697 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 281,448 $ 98,424 $ 275,297 57% $ 272,697 $ 154,423 $ 272,697 $ 13,765 $ 36,834 $ 21,348 Available Fund Balance - EOY $ 6,852 $ (8,028) $ 7,206 Page 22 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 305 Tax Increment Finance Authority Fund $ 13,983 $ 21,789 $ 37,533 Available Fund Balance - BOY $ 16,502 $ 16,445 $ 16,445 Means of Financing Property taxes $ 67,664 $ 40,634 $ 53,769 $ 53,042 $ - $ 53,042 Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services - - - - - - Interest income 142 110 143 200 43 200 Operating transfers in - General Fund - - - - - - Operating transfers in - TIFA Fund - - - - - - Operating transfers in - Insurance Fund - - - - - - Other - - - - - - $ 67,806 $ 40,744 $ 53,912 $ 53,242 $ 43 $ 53,242 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services - - - N/A - - - 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses 60,000 25,000 75,000 50% 50,000 TO GENERAL FUND FOR ARENA 50,000 25,000 $ 60,000 $ 25,000 $ 75,000 50% $ 50,000 $ 25,000 $ 50,000 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 60,000 $ 25,000 $ 75,000 50% $ 50,000 $ 25,000 $ 50,000 $ 21,789 $ 37,533 $ 16,445 Available Fund Balance - EOY $ 19,744 $ (8,512) $ 19,687 Page 23 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 394 Downtown Development Authority Fund $ 14,618 $ 289,526 $ 329,585 Available Fund Balance - BOY $ 261,431 $ 272,145 $ 272,145 Means of Financing Property taxes $ 614,632 $ 327,373 $ 281,424 $ 303,155 $ - $ 303,155 Federal & state grants - - - - - - State proposal A reimbursement revenue - - - - - - Charges for services - - - - - - Interest income 999 1,212 1,716 500 815 1,150 Operating transfers in - General Fund - - - - - - Operating transfers in - PIF - - - - - - Operating transfers in - Insurance Fund - - - - - - Other - - - - - - $ 615,631 $ 328,585 $ 283,140 $ 303,655 $ 815 $ 304,305 70805 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services - 600 - 0% 250 - 250 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses 340,723 287,926 340,580 10% 329,462 DEBT SERVICE DDA BONDS 329,462 33,373 $ 340,723 $ 288,526 $ 340,580 10% $ 329,712 $ 33,373 $ 329,712 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 340,723 $ 288,526 $ 340,580 10% $ 329,712 $ 33,373 $ 329,712 $ 289,526 $ 329,585 $ 272,145 Available Fund Balance - EOY $ 235,374 $ 239,587 $ 246,738 Page 24 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 408 Arena Improvement Fund $ 103,279 $ 71,024 $ 72,251 Available Fund Balance - BOY $ 7,051 $ 779 $ 779 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services 37,686 22,779 18,637 25,000 7,981 25,000 Interest income 734 446 217 200 64 200 Operating transfers in - - - - - - Other - - 135,500 REIMBURSEMENT FOR LIGHTS - 23,400 23,400 $ 38,420 $ 23,225 $ 154,354 $ 25,200 $ 31,445 $ 48,600 30906 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A 5300 Contractual Services 70,675 17,294 - N/A - - - 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - 225,826 N/A - - - 5900 Other Financing Uses - - - N/A - - - $ 70,675 $ 17,294 $ 225,826 N/A $ - $ - $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - 4,704 - 100% 23,400 LIGHT FIXTURES - REIMBURSED - 23,400 5400 Other Expenses - - - N/A - - - 5900 Other Financing Uses - - - N/A - - - $ - $ 4,704 $ - 100% $ - $ 23,400 $ 23,400 $ 70,675 $ 21,998 $ 225,826 100% $ - $ 23,400 $ 23,400 $ 71,024 $ 72,251 $ 779 Available Fund Balance - EOY $ 32,251 $ 8,824 $ 25,979 Page 25 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 403 Sidewalk Improvement Fund $ 989,494 $ 819,083 $ 631,995 Available Fund Balance - BOY $ 670,597 $ 665,541 $ 665,541 Means of Financing Special assessments $ 109,431 $ 5,116 $ 75,715 $ 75,000 $ - $ 75,000 Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services - - - - - - Interest income 27,514 19,395 13,597 15,000 1,912 15,000 Operating transfers in - - - - - - Other - - 100,000 - - - $ 136,945 $ 24,511 $ 189,312 $ 90,000 $ 1,912 $ 90,000 30906 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services 2,275 - - N/A - - - 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - DEBT SERVICE ON SIDEWALK 5900 Other Financing Uses 303,684 209,303 155,766 9% 151,705 13,353 151,705 ASSESSMENT BONDS $ 305,959 $ 209,303 $ 155,766 9% $ 151,705 $ 13,353 $ 151,705 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services 1,397 2,296 - N/A - - - 5400 Other Expenses - - - N/A - - 5900 Other Financing Uses - - - N/A - - - $ 1,397 $ 2,296 $ - N/A $ - $ - $ - $ 307,356 $ 211,599 $ 155,766 9% $ 151,705 $ 13,353 $ 151,705 $ 819,083 $ 631,995 $ 665,541 Available Fund Balance - EOY $ 608,892 $ 654,100 $ 603,836 Page 26 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 404 Public Improvement Fund $ 1,985,126 $ 1,319,726 $ 696,631 Available Fund Balance - BOY $ 449,277 $ 551,506 $ 551,506 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Property taxes - - - - - - Federal & state grants - - - - - - Charges for services 100,075 48,211 94,428 - - - Sales of Property 13,201 31 4,817 5,000 15 5,000 Interest income 16,140 8,556 6,974 7,500 2,633 7,500 Operating transfers in 14,216 - - - - - Other 486 - 60,377 - 37,535 45,000 $ 144,118 $ 56,798 $ 166,596 $ 12,500 $ 40,183 $ 57,500 30936 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services - - - 0% 5,000 - 5,000 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - 109,292 N/A - - - 5900 Other Financing Uses 569,523 121,001 202,429 N/A - $ 569,523 $ 121,001 $ 311,721 0% $ 5,000 $ - $ 5,000 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - 97% - 22,254 23,000 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays 239,995 558,892 - 85% - 17,049 20,000 $ 239,995 $ 558,892 $ - 91% $ - $ 39,303 $ 43,000 $ 809,518 $ 679,893 $ 311,721 82% $ 5,000 $ 39,303 $ 48,000 $ 1,319,726 $ 696,631 $ 551,506 Available Fund Balance - EOY $ 456,777 $ 552,386 $ 561,006 Page 27 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 482 State Grants Fund $ 649,547 $ 599,175 $ 500,140 Available Fund Balance - BOY $ 294,369 $ 237,439 $ 237,439 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants 175,689 217,405 462,517 315,000 135,220 315,000 Sales of Property - - - - - - Interest income - 38 613 - 630 1,000 FROM PUBLIC IMPROVEMENT FUND Operating transfers in - - - - - - FOR SMITH RYERSON Other 6,307 - 237,104 - - - $ 181,996 $ 217,443 $ 700,234 $ 315,000 $ 135,850 $ 316,000 30936 Operating Expenditures 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - 5300 Contractual Services - - - N/A - - - 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - 634,622 N/A - - - 5900 Other Financing Uses 16,840 - 328,313 N/A - - - $ 16,840 $ - $ 962,935 N/A $ - $ - $ - 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - SEE "BUDGETED CAPITAL 5700 Capital Outlays 215,528 316,478 - 3% 315,000 8,692 315,000 IMPROVEMENTS" FOR DETAIL $ 215,528 $ 316,478 $ - 3% $ 315,000 $ 8,692 $ 315,000 $ 232,368 $ 316,478 $ 962,935 3% $ 315,000 $ 8,692 $ 315,000 $ 599,175 $ 500,140 $ 237,439 Available Fund Balance - EOY $ 294,369 $ 364,597 $ 238,439 Page 28 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 594 Marina & Launch Ramp Fund $ 85,238 $ 149,996 $ 217,556 Available Cash Balance - BOY $ 301,056 $ 243,852 $ 243,852 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services 246,565 155,059 184,394 260,000 78,848 260,000 Interest income 763 745 - - 681 800 Operating transfers in - 3,760 - - - - Other 669 1,709 9,917 - 2,155 3,000 $ 247,997 $ 161,273 $ 194,311 $ 260,000 $ 81,684 $ 263,800 70756 Operating Expenditures - Marina 5100 Salaries & Benefits $ 80,164 $ 33,715 $ 46,085 11% $ 46,822 $ 5,335 $ 46,822 5200 Operating Supplies 5,992 7,328 7,200 16% 10,600 1,720 10,600 5300 Contractual Services 80,619 45,158 109,504 63% 124,354 77,796 124,354 5400 Other Expenses - - - 90% 100 158 175 5700 Capital Outlays 12,217 - 5,806 0% 7,800 (13) 7,800 5900 Other Financing Uses - - 4,345 N/A - - - Other Cash Uses (e.g. Debt Principal) (5,820) - - N/A - - - $ 173,172 $ 86,201 $ 172,940 45% $ 189,676 $ 84,996 $ 189,751 70759 Operating Expenditures - Ramps 5100 Salaries & Benefits $ 1,303 $ 190 $ - 0% $ 2,500 $ - $ 2,500 5200 Operating Supplies 420 1,189 593 0% 500 - 500 5300 Contractual Services 8,344 6,133 4,426 52% 9,580 4,962 9,580 5400 Other Expenses - - - N/A - - - 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses - - - N/A - - - Other Cash Uses (e.g. Debt Principal) - - (9,944) N/A - - - $ 10,067 $ 7,512 $ (4,925) $ 39% 12,580 $ 4,962 $ 12,580 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - 5700 Capital Outlays - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 183,239 $ 93,713 $ 168,015 44% $ 202,256 $ 89,958 $ 202,331 $ 149,996 $ 217,556 $ 243,852 Available Cash Balance - EOY $ 358,800 $ 235,578 $ 305,321 Page 29 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 661 Equipment Fund $ 2,472,676 $ 2,519,442 $ 2,755,881 Available Cash Balance - BOY $ 2,468,665 $ 2,880,251 $ 2,880,251 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services 2,178,851 1,204,803 2,211,835 INTERDEPARTMENTAL CHARGES 2,300,000 965,172 2,300,000 Interest income 19,495 13,150 13,822 25,000 7,811 25,000 Operating transfers in - - - - - - Other 151,690 67,112 96,411 100,000 46,723 100,000 $ 2,350,036 $ 1,285,065 $ 2,322,068 $ 2,425,000 $ 1,019,706 $ 2,425,000 60932 Operating Expenditures 5100 Salaries & Benefits $ 591,154 $ 198,819 $ 392,338 56% $ 412,262 $ 230,630 $ 412,262 5200 Operating Supplies 746,316 352,010 833,310 37% 934,000 347,895 934,000 5300 Contractual Services 474,054 368,421 643,677 43% 757,317 322,414 757,317 5400 Other Expenses 1,013 37 352 7% 1,000 72 1,000 SEE "BUDGETED CAPITAL 5700 Capital Outlays 446,354 45,518 372,756 43% 607,400 443,597 1,039,565 IMPROVEMENTS" FOR DETAIL 5900 Other Financing Uses - - - N/A - - - Other Cash Uses (e.g. Debt Principal) 44,379 83,821 (44,735) N/A - - - $ 2,303,270 $ 1,048,626 $ 2,197,698 43% $ 2,711,979 $ 1,344,608 $ 3,144,144 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - 5700 Capital Outlays - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 2,303,270 $ 1,048,626 $ 2,197,698 43% $ 2,711,979 $ 1,344,608 $ 3,144,144 $ 2,519,442 $ 2,755,881 $ 2,880,251 Available Cash Balance - EOY $ 2,181,686 $ 2,555,349 $ 2,161,107 Page 30 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 642 Public Service Building Fund $ 474,631 $ 513,578 $ 444,931 Available Cash Balance - BOY $ 160,371 $ 268,058 $ 268,058 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services 610,873 484,670 769,340 INTERDEPARTMENTAL CHARGES 969,340 484,671 969,340 Interest income 3,804 2,570 2,214 6,000 986 6,000 Operating transfers in - - - - - - Other - - 68 - - - $ 614,677 $ 487,240 $ 771,622 $ 975,340 $ 485,657 $ 975,340 60442 Operating Expenditures 5100 Salaries & Benefits $ 266,246 $ 429,395 $ 637,792 55% $ 547,811 $ 299,072 $ 547,811 5200 Operating Supplies 28,229 10,221 12,278 24% 26,400 6,332 26,400 5300 Contractual Services 243,486 115,637 231,099 29% 301,101 86,426 301,101 5400 Other Expenses 8,200 9,754 14,507 76% 500 10,665 14,000 5700 Capital Outlays 6,907 2,114 - 40% 19,500 7,710 19,500 5900 Other Financing Uses - - - N/A - - - Other Cash Uses and Adjustments (e.g. 22,662 (14,248) (20,346) N/A - - - Debt Principal) $ 575,730 $ 552,873 $ 875,330 45% $ 895,312 $ 410,205 $ 908,812 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - 3,014 73,165 0% - - 30,000 5700 Capital Outlays - - - N/A - - - $ - $ 3,014 $ 73,165 0% $ - $ - $ 30,000 $ 575,730 $ 555,887 $ 948,495 44% $ 895,312 $ 410,205 $ 938,812 $ 513,578 $ 444,931 $ 268,058 Available Cash Balance - EOY $ 240,399 $ 343,510 $ 304,586 Page 31 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 643 Engineering Services Fund $ 132,074 $ (48,336) $ (98,892) $ Available Cash Balance - BOY (14,992) $ (93,420) $ (93,420) Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services 451,132 177,438 410,022 INTERDEPARTMENTAL CHARGES 459,506 240,949 459,506 Interest income 606 103 - - 4 10 Operating transfers in - - - DEFICIT ELIMINATION PLAN - 75,000 75,000 Other 23,312 126 128,631 25,000 28,198 40,000 $ 475,050 $ 177,667 $ 538,653 $ 484,506 $ 344,151 $ 574,516 60447 Operating Expenditures 5100 Salaries & Benefits $ 450,038 $ 140,911 $ 298,948 56% $ 299,804 $ 168,998 $ 299,804 5200 Operating Supplies 8,918 5,313 6,021 9% 11,230 1,051 11,230 5300 Contractual Services 135,994 63,729 128,256 43% 138,320 59,240 138,320 5400 Other Expenses 286 2,085 179 0% 1,000 - 1,000 5700 Capital Outlays 7,973 3,994 5,406 20% 7,700 1,519 7,700 5900 Other Financing Uses - - - N/A - - - Other Cash Uses and Adjustments (e.g. 16,159 9,979 61,714 N/A - - - Debt Principal) $ 619,368 $ 226,011 $ 500,524 50% $ 458,054 $ 230,808 $ 458,054 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services 36,092 2,212 32,657 30% - 6,043 20,000 5700 Capital Outlays - - - N/A - - - $ 36,092 $ 2,212 $ 32,657 30% $ - $ 6,043 $ 20,000 $ 655,460 $ 228,223 $ 533,181 50% $ 458,054 $ 236,851 $ 478,054 $ (48,336) $ (98,892) $ (93,420) $ Available Cash Balance - EOY 11,460 $ 13,880 $ 3,042 Page 32 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 677 General Insurance Fund $ 1,236,014 $ 1,339,236 $ 1,535,902 Available Cash Balance - BOY $ 1,484,748 $ 1,420,174 $ 1,420,174 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services 4,260,731 2,116,365 3,770,919 INTERDEPARTMENTAL CHARGES 2,864,118 1,628,436 2,864,118 Interest income 5,257 4,577 6,057 10,000 3,930 10,000 MERS Retireee Health Reimbursement - - - 840,000 390,444 840,000 Medicare Part D Rx Reimbursement - - - 35,000 - 35,000 Repayment of DDA Advance - - - - - - INTERFUND LOAN REPAYMENT - Operating transfers in 28,046 14,023 28,046 28,046 14,023 28,046 ARENA IMPROVEMENTS Other 4,863 6,038 11,081 - 105,301 125,000 $ 4,298,897 $ 2,141,003 $ 3,816,103 $ 3,777,164 $ 2,142,134 $ 3,902,164 30851 Operating Expenditures 5100 Salaries & Benefits $ 43,957 $ - $ - 54% $ 32,502 $ 17,472 $ 32,502 5200 Operating Supplies 1,154 - - 83% - 166 200 5300 Contractual Services 4,215,551 1,944,337 4,099,156 47% 3,704,118 1,750,148 3,704,118 5400 Other Expenses 1,141 - - 0% 1,500 - 1,500 5700 Capital Outlays 1,915 - - 56% 2,000 1,110 2,000 5900 Other Financing Uses 77,744 - - N/A - - - Other Cash Uses and Adjustments (e.g. (145,787) - (167,325) N/A - - - Debt Principal) $ 4,195,675 $ 1,944,337 $ 3,931,831 47% $ 3,740,120 $ 1,768,896 $ 3,740,320 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - 5300 Contractual Services - - - N/A - - - 5700 Capital Outlays - - - N/A - - - $ - $ - $ - N/A $ - $ - $ - $ 4,195,675 $ 1,944,337 $ 3,931,831 47% $ 3,740,120 $ 1,768,896 $ 3,740,320 $ 1,339,236 $ 1,535,902 $ 1,420,174 Available Cash Balance - EOY $ 1,521,792 $ 1,793,412 $ 1,582,018 Page 33 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 590 Sewer Fund $ (249,387) $ 521,480 $ 1,585,879 Available Cash Balance - BOY $ 2,448,376 $ 3,320,219 $ 3,320,219 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - 10,000 - 10,000 State shared revenue - - - - - - Charges for services 5,584,293 3,369,596 6,499,376 5,980,000 2,057,681 5,980,000 Interest income 597 1,679 9,822 15,000 8,119 15,000 Repayment of DDA advance - - - - - - Operating transfers in - - - - - - Other 481,114 78,581 153,475 150,000 25,983 150,000 $ 6,066,004 $ 3,449,856 $ 6,662,673 $ 6,155,000 $ 2,091,783 $ 6,155,000 30548 Operating Expenditures Administration 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies - - - N/A - - - INSURANCE/INDIRECT 5300 Contractual Services 363,113 188,402 332,732 40% 332,055 134,208 332,055 COSTS/ADMINISTRATION FEE 5400 Other Expenses 5,087 6,254 2,158 96% - 8,638 9,000 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses - - 41,609 N/A - - - Other Cash Uses and Adjustments (e.g. - (10,152) (249,391) N/A - - - Debt Principal) $ 368,200 $ 184,504 $ 127,108 42% $ 332,055 $ 142,846 $ 341,055 60559 Operating Expenditures Maintenance 5100 Salaries & Benefits $ 728,753 $ 239,245 $ 472,593 35% $ 647,726 $ 227,373 $ 647,726 5200 Operating Supplies 37,583 29,401 30,123 20% 47,750 9,370 47,750 5300 Contractual Services 3,863,907 1,866,171 4,011,555 33% 4,546,078 1,480,002 4,546,078 5400 Other Expenses - 600 500 0% 1,000 - 1,000 5700 Capital Outlays 18,960 1,520 5,860 0% 17,760 12 17,760 5900 Other Financing Uses - - - N/A - - - $ 4,649,203 $ 2,136,937 $ 4,520,631 33% $ 5,260,314 $ 1,716,757 $ 5,260,314 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - SEE "BUDGETED CAPITAL 5300 Contractual Services 277,734 64,016 280,594 70% 400,000 299,276 428,000 IMPROVEMENTS" FOR DETAIL 5700 Capital Outlays - - - N/A - - - $ 277,734 $ 64,016 $ 280,594 70% $ 400,000 $ 299,276 $ 428,000 $ 5,295,137 $ 2,385,457 $ 4,928,333 36% $ 5,992,369 $ 2,158,879 $ 6,029,369 $ 521,480 $ 1,585,879 $ 3,320,219 Available Cash Balance - EOY $ 2,611,007 $ 3,253,123 $ 3,445,850 Page 34 of 40 City of Muskegon Annual Budget & Quarterly Budget Reforecast - Other Funds Actual 2010 Original Budget Actual to Date Actual As % of Revised Budget Actual 2009 Actual 2011 Comments (Stub Year) FY2012 FY2012 Revised Estimate FY2012 591 Water Fund $ 3,232,652 $ 2,301,294 $ 3,128,123 $ 2,868,744 Available Cash Balance - BOY $ 3,585,169 $ 3,585,169 Means of Financing Special assessments $ - $ - $ - $ - $ - $ - Federal & state grants - - - - - - State shared revenue - - - - - - Charges for services - City 2,967,961 1,564,652 3,025,327 3,155,000 1,077,856 3,155,000 Charges for services - Wholesale 2,281,977 989,519 1,906,772 2,120,000 695,546 2,120,000 Maintenance services - Township 162,300 88,858 178,393 170,000 110,782 170,000 Interest income 22,483 13,566 13,025 20,000 7,090 20,000 Lease of facilities 127,027 71,402 143,269 LEASE OF SPACE ON WATER TOWERS 127,000 80,531 127,000 Repayment of DDA advance - - - - - - Operating transfers in - - - - - - Other 327,378 184,695 245,418 - 81,685 125,000 $ 5,889,126 $ 2,912,692 $ 5,512,204 $ 5,592,000 $ 2,053,490 $ 5,717,000 30548 Operating Expenditures Administration 5100 Salaries & Benefits $ - $ - $ - N/A $ - $ - $ - 5200 Operating Supplies 4,155 1,085 - N/A - - - INSURANCE/INDIRECT 5300 Contractual Services 512,150 258,076 541,950 42% 536,007 224,340 536,007 COSTS/ADMINISTRATION FEE 5400 Other Expenses 5,295 7,960 - 89% 2,000 5,332 6,000 5700 Capital Outlays - - - N/A - - - 5900 Other Financing Uses 567,463 - 415,395 50% 410,188 INTEREST ON WATER BONDS 410,188 203,794 Other Cash Uses and Adjustments (e.g. 1,110,000 317,141 1,061,133 51% 1,230,000 PRINCIPAL ON WATER BONDS 1,230,000 630,000 Debt Principal) $ 2,199,063 $ 584,262 $ 2,018,478 49% $ 2,178,195 $ 1,063,466 $ 2,182,195 60559 Operating Expenditures Maintenance - City 5100 Salaries & Benefits $ 972,743 $ 420,828 $ 816,927 $ 57% 768,795 $ 438,353 $ 768,795 5200 Operating Supplies 1,361,098 48,567 190,809 66% 160,260 105,362 160,260 5300 Contractual Services 368,258 149,061 299,637 37% 446,417 165,250 446,417 5400 Other Expenses 35,364 29,769 66,107 74% 53,230 39,173 53,230 5700 Capital Outlays 8,490 906 11,531 8% 16,500 1,342 16,500 5900 Other Financing Uses - - - N/A - - - $ 2,745,953 $ 649,131 $ 1,385,011 $ 1,445,202 $ 52% 749,480 $ 1,445,202 60558 Operating Expenditures Filtration 5100 Salaries & Benefits $ 601,170 $ 299,682 $ 590,491 $ 47% 655,881 $ 305,433 $ 655,881 5200 Operating Supplies 238,676 93,186 232,984 40% 275,095 109,174 275,095 5300 Contractual Services 490,099 246,943 433,967 31% 615,970 188,499 615,970 5400 Other Expenses 1,384 750 1,153 31% 2,600 810 2,600 5700 Capital Outlays 126,309 26,130 108,567 98% 45,300 83,190 85,000 5900 Other Financing Uses - - - N/A - - - Replacement Reserve - DWRF - - - 0% 290,000 - 290,000 $ 1,457,638 $ 666,691 $ 1,367,162 $ 1,884,846 36% $ 687,106 $ 1,924,546 90000 Project Expenditures 5200 Operating Supplies $ - $ - $ - N/A $ - $ - $ - SEE "BUDGETED CAPITAL 5300 Contractual Services 417,830 185,779 284,507 63% 1,340,000 676,190 1,067,100 IMPROVEMENTS" FOR DETAIL 5700 Capital Outlays - - - N/A - - - $ 417,830 $ 185,779 $ 284,507 $ 1,340,000 63% $ 676,190 $ 1,067,100 $ 6,820,484 $ 2,085,863 $ 5,055,158 $ 6,848,243 48% $ 3,176,242 $ 6,619,043 $ 2,301,294 $ 3,128,123 $ 3,585,169 Available Cash Balance - EOY $ 1,612,501 $ 2,462,417 $ 2,683,126 Page 35 of 40 City of Muskegon 2011-12 2Q Reforecast - Debt Service Requirements Original Outstanding Year Amount Balance Principal Interest Total Final Bond Issue Fund Issued of Issue 06/30/11 Due FY 2012 Due FY 2012 Due FY 2012 Maturity Existing Debt Issues: DDA Debt Service 2011 $ 2,045,000 $ 2,045,000 $ 265,000 $ 64,462 $ 329,462 2018 DDA G.O. Refunding Bonds DDA Debt Service 1989 1,000,000 1,000,000 - - - 2019 DDA Promissory Note with Muskegon County LDFA III 2002 4,725,000 4,405,000 80,000 192,197 272,197 2025 LDFA Tax Increment Bonds (Smartzone) Major Streets 2011 2,000,000 - - 24,999 24,999 2022 MTF Major & Local Streets Bond Brownfield 2005 500,000 244,850 28,527 4,897 33,424 2015 State of Michigan Environmental Loan General 2006 5,400,000 5,235,000 70,000 211,145 281,145 2032 Bond for Fire Station & Rec Projects Sidewalk 2003 1,575,000 685,000 125,000 26,705 151,705 2016 Capital Improvement Bonds (Sidewalks) Water 2004 13,900,000 10,955,000 630,000 226,100 856,100 2025 Water Filtration Improvement DWRF Loan Water 2010 5,995,000 5,415,000 600,000 184,088 784,088 2019 Water Supply System Revenue Bonds 37,140,000 29,984,850 1,798,527 934,593 2,733,120 Anticipated Debt Issues: - - - - - $ 37,140,000 $ 29,984,850 $ 1,798,527 $ 934,593 $ 2,733,120 Recap By Fund: Total General $ 281,145 Major Street 24,999 Brownfield 33,424 Sidewalk Improvemen 151,705 Water 1,640,188 DDA 329,462 LDFA III (Smartzone) 272,197 $ 2,733,120 Page 36 of 40 City of Muskegon Quarterly Budget Reforecast and 2011-12 Proposed Budget 2011-12 2011-12 2011-12 1Q 2011-12 2Q Comments Responsibility Budgeted Estimated Reforecast Reforecast Projects Project Grants 2011-12 BUDGETED PROJECTS 101 General Fund Roof Replacement over Police Department Al-Shatel $ 39,000 $ 39,000 $ 16,000 Irrigation Well & Pumps @ Lakeside Cemetery Al-Shatel 29,000 29,000 29,000 VOIP Phone System Maurer 90,000 90,000 69,763 One-Year Payback Financial Management System Paul - - 45,000 McGraft - Replace Roof/Surface Tennis Courts/Drainage& Ice Melt Al-Shatel 35,000 35,000 35,000 ADA Compliance, various locations Al-Shatel 25,000 25,000 25,000 Federal Agreement Irrigation at City Hall Al-Shatel 15,000 15,000 15,000 Replace System City Hall Roof Repairs (Various Locations) Al-Shatel - - 8,000 Replace System - 40,000 55,000 City Hall Tuck Pointing & Sealing Al-Shatel 40,000 273,000 - 273,000 297,763 202 Major Streets Laketon, Barclay to Henry Al-Shatel 30,000 30,000 30,000 Laketon-Henry Intersection Al-Shatel 20,000 20,000 20,000 Laketon Traffic Signals: Hoyt, Getty, Roberts & Wood Al-Shatel 50,000 300,000 300,000 Traffic Signal replacement/Upgrade at Getty & Evanston Al-Shatel 138,000 - 5,000 5,000 Design Only this Year Laketon, Henry to Park Al-Shatel 700,000 560,000 765,000 765,000 STP Grant Funds Ryerson Creek Fish Passage (Muskegon Ave. @ Eastern) Al-Shatel 40,000 40,000 40,000 Sherman, Lincoln to Estes Al-Shatel 1,100,000 481,000 1,100,000 50,000 STP Grant Funds (Design only FY12) Port City, Latimer to Laketon Al-Shatel 15,000 15,000 15,000 Getty Street, Keating to Laketon (STP) Al-Shatel 575,000 300,000 575,000 575,000 STP Grant Funds Traffic Signals Warrants Evaluation, various locations Al-Shatel 23,000 - 23,000 23,000 Speed Limits Evaluations Al-Shatel 20,000 20,000 20,000 In-House engineering Costs Page 37 of 40 City of Muskegon Quarterly Budget Reforecast and 2011-12 Proposed Budget 2011-12 2011-12 2011-12 1Q 2011-12 2Q Comments Responsibility Budgeted Estimated Reforecast Reforecast Projects Project Grants 2011-12 BUDGETED PROJECTS Terrace, Apple to Western Al-Shatel 230,000 160,000 240,000 240,000 Mill and Resurface - HPP Grant Funds M-120 Over North Branch of River Al-Shatel 14,000 14,000 14,000 MDOT Project - 8.75% City Participation Getty St., Laketon to Evanston Al-Shatel 960,000 435,000 960,000 960,000 TEDF and CDBG Grant Funds 3,915,000 1,936,000 4,107,000 3,057,000 203 Local Streets Viridian Drive Extension Al-Shatel - - - 7,300 Dale, Peck to Clinton Al-Shatel 55,000 20,000 55,000 70,000 Reconstruct 55,000 20,000 55,000 77,300 404 Public Improvement Fund No Budgeted Projects - - - - 408 Arena Maintenance Fund No Budgeted Projects - - - - - - - - 482 State Grants Fund EPA Grant Brubaker-Clarke 40,000 40,000 40,000 40,000 Musketawa Trail Connection-phase IB (Keating to Black Creek) Al-Shatel 275,000 275,000 275,000 275,000 315,000 315,000 315,000 315,000 590 Sewer Sewer Rehabilitation Project (various projects) Al-Shatel 100,000 - 100,000 100,000 Lining of Manholes/Sewer Lines Isabella, Peck to Terrace Al-Shatel 25,000 25,000 25,000 Getty, Laketon to Evanston Al-Shatel 135,000 - 135,000 135,000 New Sewer Main and Services Evanston Lift Station Al-Shatel - - 10,000 Design Hackely, Hudson to Glen Al-Shatel - - 10,000 Design Terrace, Apple to Western Al-Shatel 20,000 - 20,000 20,000 Sewer Repairs Associated With Street Project Dale, Peck to Clinton Al-Shatel - - - 8,000 GIS Update and Maintenance Al-Shatel 30,000 30,000 30,000 County Licensing, Map Maintenance Page 38 of 40 City of Muskegon Quarterly Budget Reforecast and 2011-12 Proposed Budget 2011-12 2011-12 2011-12 1Q 2011-12 2Q Comments Responsibility Budgeted Estimated Reforecast Reforecast Projects Project Grants 2011-12 BUDGETED PROJECTS Mason, Sixth to Fifth Al-Shatel 90,000 - 90,000 90,000 Replace Main and Services 400,000 - 400,000 428,000 591 Water Elevated Tank - Marshall & Roberts, Interior Painting Al-Shatel 290,000 - 185,000 185,000 Favorable Bids Water Main Replacement Project, various locations & 2" & 4" Mains replacem Al-Shatel 100,000 - 100,000 80,000 Filtration Plant Laketon, Henry to Park Al-Shatel 25,000 70,000 70,000 Water Repairs Associated With Street Project Getty Street, Keating to Laketon (STP) Al-Shatel 135,000 135,000 135,000 Main and Services Replacement Getty St., Laketon to Evanston Al-Shatel 225,000 225,000 225,000 Crossing Mains and Services Replacement Isabella, Peck to Terrace Al-Shatel 40,000 40,000 40,000 Replace Main and Services High Service Switchgear Repairs & Upgrades Al-Shatel 175,000 175,000 175,000 Filtration Plant Sherman, Lincoln to Estes Al-Shatel - - - 10,000 Dale, Peck to Clinton Al-Shatel - - - 7,100 Design Hackely, Hudson to Glen Al-Shatel - - 10,000 Design Terrace, Apple to Western Al-Shatel 230,000 10,000 10,000 Water Repairs Associated With Street Project GIS Update and Maintenance Al-Shatel 30,000 30,000 30,000 County Licensing, Map Maintenance - 90,000 90,000 Replace Main and Services Mason, Sixth to Fifth Al-Shatel 90,000 1,340,000 - 1,060,000 1,067,100 642 PSB Security System/Cameras Al-Shatel - - - 30,000 - - - 30,000 643 Engineering Services Intergovernmental Engineering Work Al-Shatel 20,000 - 20,000 20,000 20,000 - 20,000 20,000 Page 39 of 40 City of Muskegon Quarterly Budget Reforecast and 2011-12 Proposed Budget 2011-12 2011-12 2011-12 1Q 2011-12 2Q Comments Responsibility Budgeted Estimated Reforecast Reforecast Projects Project Grants 2011-12 BUDGETED PROJECTS 661 Equipment Fund 5720/Quantity Non-Vehicular Equipment: 1 Diagnostic Equipment Al-Shatel 25,000 - 25,000 25,000 1 Snow Blower / Mower Al-Shatel 103,000 - 103,000 103,000 1 Concrete Saw Al-Shatel 25,000 - 25,000 25,000 153,000 - 153,000 153,000 5746 Communications Equipment: 1 Video system Al-Shatel 8,000 - 8,000 8,000 5 Cruiser radios Al-Shatel 8,000 - 8,000 8,000 6 In-car radios Al-Shatel 4,000 - 4,000 4,000 3 Light bars Al-Shatel 6,000 - 6,000 6,000 26,000 - 26,000 26,000 5730 Vehicles: 2 Small Pickup Al-Shatel 32,800 - 32,800 32,800 5 Patrol Cruisers Al-Shatel - - 110,000 110,000 1 Pickup Truck, 4X4 Al-Shatel 24,600 - 24,600 24,600 1 I ton dump 4X4 Al-Shatel 31,000 - 31,000 31,000 New - For Plowing Alleys 1 Plow Truck Al-Shatel 140,000 - 140,000 140,000 Replaces 1992 Vehicle 1 Vactor Al-Shatel - - 322,165 322,165 Replaces 1992 Vehicle - 200,000 200,000 Replaces 1999 Equipment 1 Sewer Jet Al-Shatel 200,000 428,400 - 860,565 860,565 Total Equipment Fund 607,400 - 1,039,565 1,039,565 $ 6,925,400 $ 2,271,000 $ 7,269,565 $ 6,331,728 Page 40 of 40 Date: February 14, 2012 To: Honorable Mayor and City Commissioners From: Finance Director RE: Financial Management Software SUMMARY OF REQUEST: The City’s financial management software is sixteen years old and the developer has indicated they will be phasing out the system over the next few years. Staff has explored various options and believes the best route is to replace the current systems with BS&A financial software. This system has become the standard in Muskegon County which could be an important factor in future intergovernmental initiatives. Moreover, several modules of the software are already being used by the City and completing the suite will allow for better internal systems integration and resultant savings. FINANCIAL IMPACT: The upfront cost for the system is $125,000 payable in 3 equal installments ($41,667) over three years with no interest. The system will save $15,548 in annual licensing fees and result in significant staff time savings through better integration of financial system components. For example, the city currently uses BS&A utility billing software which will interface directly with the BS&A general ledger system, greatly reducing manual transaction postings. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Acceptance of the proposal as submitted by BS&A software. COMMITTEE RECOMMENDATION: None. Finance Administration Memo To: City Commission From: Finance Director Date: January 25, 2012 Re: Financial Management Software System Background The City’s current financial management system (GEMS) was implemented in 1996 and has served the City well since that time. Recently, MSGovern (the company that developed and supports the system) notified us that GEMS support will be phased out over the next few years. MSGovern is encouraging its current GEMS clients to migrate to another software platform (Innoprise) that their company has acquired (see attached). GEMS is the backbone of the City’s financial management system supporting general ledger, accounts payable, fixed assets, and payroll functions. However, the City also relies on software from a company called BS&A to support utility billing, tax billing, and building inspections functions. Function Current Software Proposed Software Payroll MSGovern/GEMS BS&A G/L, A/P, A/R, Fixed Assets MSGovern/GEMS BS&A Special Assessments BS&A BS&A Cash Receipting BS&A BS&A Utility Billing BS&A BS&A Delinq Personal Property BS&A BS&A Property Tax Billing BS&A BS&A Inspections BS&A BS&A z Page 1 O:\FINANCE\PAUL\MyDocuments\MEMO - Replace Financial Management System.doc Staff has explored options including: 1) migrating to the Innoprise software suite as proposed by MSGovern, 2) conducting an RFP process and, 3) moving all financial management functions to the BS&A platform. We believe the most advantageous and most cost-effective option is to move the current GEMS functions to the BS&A platform. Benefits and Payback There are several significant benefits that can be realized by going with the BS&A package: x Time Savings – Having all financial management functions using the same software suite would allow better integration of functions. For example, significant staff time could be saved by automating transaction processing between utility billing and general ledger functions – processing that currently involves manual processing. Similar integration could be achieved with the tax billing and general ledger. x Countywide Standardization - BS&A has become the dominant municipal financial management software in Muskegon County (see attached). Most recently, the City of Norton Shores and Muskegon County have selected BS&A software. Standardization of financial management software among county municipalities could be an important enabler for future intergovernmental cooperation efforts. x Focus on Michigan – BS&A is a Michigan-based company with the majority of its clients being Michigan cities, counties and townships. This means that the BS&A software is more in tune with Michigan-specific requirements than software from a national vendor might be. For example, BS&A integrates well with the software predominantly used for Michigan municipal income tax collections. Similarly, the BS&A suite includes modules for Michigan’s required dashboard financial reporting and F65 reporting. x Long Term Cost Savings – BS&A licensing and maintenance fees are 50% less than for the current GEMS software. Additionally, there is no licensing fee for the first year. As the City will likely have the BS&A Current Cost BS&A Cost Annual Savings Annual Licensing & $31,318 $15,770 $15,548 Support Fees Upfront Costs The upfront purchase price for the BS&A system is $125,000 which includes the cost of the software, data conversion, on-site training for City staff and project management. The pricing includes a 10% discount due to the fact that we would be making the purchase at the same time as Muskegon County. BS&A allows the City to pay the one-time costs over three years at 0% interest. This equates to three equal annual payments of $41,667. z Page 2 Recommendation The City’s budget will be stressed for several years to come and proposing a substantial outlay for software at this time is certainly not welcome news. However, the alternative of delaying action and being forced into a change two or three years from now is worse. Moreover, implementing the BS&A software at this time will better prepare the City for further staff reductions and intergovernmental cooperation initiatives that are likely to come. Staff’s experience with our current BS&A modules has been favorable and we have checked with several other comparable-sized municipal users (Novi, Royal Oak, Kentwood) who have all given highly favorable references. Accordingly, staff recommends that the City Commission approve the attached proposal from BS&A software. Thank you. z Page 3 BS&A Muskegon County Presence Tax & Financial Building Municipality Assessing Management Utility Billing Department BS&A BS&A Blue Lake Township BS&A BS&A BS&A Casnovia Township BS&A BS&A Cedar Creek Township BS&A BS&A BS&A BS&A Dalton & Egelston Township BS&A BS&A BS&A Fruitland Township BS&A BS&A BS&A Fruitport Charter Township Current BS&A BS&A Holton Township BS&A BS&A BS&A BS&A Laketon Township BS&A BS&A BS&A Lakewood Club Village BS&A BS&A BS&A BS&A Montague City In Process BS&A Montague Township BS&A BS&A Moorland Townshi p BS&A BS&A BS&A BS&A Muskegon Charter Township BS&A BS&A BS&A Muskegon City BS&A BS&A BS&A Muskegon County BS&A BS&A BS&A BS&A Muskegon Heights City BS&A BS&A BS&A BS&A North Muskegon City BS&A BS&A BS&A BS&A Norton Shores City BS&A BS&A Ravenna Township BS&A BS&A Ravenna Village BS&A BS&A BS&A Roosevelt Park City BS&A BS&A Sullivan Township BS&A White River Township BS&A BS&A BS&A BS&A Whitehall City BS&A Whitehall Township December 1, 2011 Update from MS Govern Executive Team As previously announced, Harris Computer Systems (“Harris”) acquired software assets of Innoprise Software, Inc. in April of this year and consolidated them into our MS Govern Business Unit as our next-generation ERP product offering. This web-based solution includes Financials, Human Resources & Payroll, Community Development, Utility Billing, Sales Tax, and an integrated Citizen Access Portal. This Harris-Innoprise ERP suite will enable local governments and municipal utilities to reduce their cost of service, streamline operations, and improve productivity. With the addition of this product suite to our portfolio, we’re now able to offer you even MORE choices of public-sector software to help your organization better service your citizens and improve overall efficiency. There are more than 80 government entities using the Harris-Innoprise solution today, and we will continue to invest in the future of this premier product offering for many years to come. MS Govern’s GEMS customers will also have the opportunity to migrate from their current software to the Harris-Innoprise ERP solution under our industry-unique Software for Life program. This policy enables all Harris customers to upgrade to the latest products by reducing the financial barriers usually associated with keeping pace with ever-changing software technologies and infrastructure. Further, under this program, you do not incur licensing fees for same product line upgrades, and will benefit from greatly reduced licensing fees for transition between flagship product lines. This means that current MS Govern customers using the Govern GEMS FMS and HRMS software can upgrade to the Harris-Innoprise ERP solution without paying additional software license fees provided they are current with their software maintenance and support. Additional training, data conversion, and implementation services and fees will be necessary to successfully make this transition. The choice of when you make the move to the Harris-Innoprise ERP solution is ultimately yours. We will continue to support and invest in the Govern GEMS Financial and HRMS solutions as long as you continue to use and enjoy them. This strategy does not affect plans for the Govern Community Management System (CMS) and delivery of our next generation CMS OpenForms platform as promised. Additionally, we will continue to develop and promote the CityView Community Development Suite as a best-of-breed solution. We are going to make every effort to make the migration from Govern GEMS Financials and HRMS software to the new Harris-Innoprise ERP solution as simple and easy as possible, while also being cost-effective and competitive. Our team has had unprecedented success migrating customers from other legacy ERP solutions to the Innoprise products, and we will leverage that success, skill, and experience to forge a solid plan and process for all Govern GEMS Financial and HRMS users. As a valued customer, you will continue to work with the great people you have come to rely on at MS Govern. We now have more than 120 dedicated employees working across five North www.msgovern.com American offices who are collectively focused on continually improving service levels, responsiveness and product quality for you. Within each functional group (Sales, Support, Professional Services, Technical Services, and Research & Development) we have teams of employees dedicated to our diverse software products – where they can best deliver the experience, knowledge, skills and expertise you need. At the same time, the acquisition of Innoprise will provide our employees and users with many new opportunities to expand, grow and learn. We know you are anxious to see this new product offering and we will be scheduling web-based demonstrations open to all FMS and HRMS customers beginning this month, and continuing into 2012. I encourage you to reach out to your MS Govern representative or account manager if you have immediate questions. Sincerely, Jim Simak, General Manager MS Govern Find out more about our newest Enterprise Resource Planning solution at www.msgovern.com/software/innoprise. www.msgovern.com 14965 Abbey Lane Bath, MI 48808 Phone: 517-641-8900 Fax: 517-641-8960 January 18, 2012 Prepared for: City of Muskegon, Muskegon County Prices good for a period of 90 days from date on proposal. Financial Management Suite • Assessing & Property Tax Suite • Community Development Suite • Internet Services • Ancillary Applications 1 14965 Abbey Lane, Bath, MI, 48808 • Toll Free: (855) BSA-SOFT • P: (517) 641-8900 • F: (517) 641-8960 • www.bsasoftware.com 14965 Abbey Lane Bath, MI 48808 Phone: 517-641-8900 Fax: 517-641-8960 Proposal to City of Muskegon, Muskegon County Financial Management Systems Network License Prices based on approx. 15,712 parcels Please Note: To efficiently run these applications the Hardware requirements have increased. Please review our required specifications prior to ordering these applications. General Ledger System $12,595 Accounts Payable System $10,695 Payroll System $13,855 Human Resources System $12,595 Timesheets System $7,675 Miscellaneous Receivables $10,695 Fixed Assets System $10,695 10% Discount on Program prices in conjunction with the County purchase - $7,880 Data Conversions (Conversion fees do not include data extraction from your existing software. These services can be performed by BS & A for a fee of $100/hr.) Data must be received in ASCII format. Convert existing GEMS data to BSA format. General Ledger $6,000 Accounts Payable $4,000 Miscellaneous Receivables $4,000 Fixed Assets $4,000 Payroll $8,000 On-Site Training General Leger 3 Accounts Payable 2 Payroll 7 Human Resources 2 Timesheets 1 Miscellaneous Receivables 2 Fixed Assets 1 Prices good for a period of 90 days from date on proposal. 2 14965 Abbey Lane Bath, MI 48808 Phone: 517-641-8900 Fax: 517-641-8960 Est. 18 days @ $1,150/day (travel expenses included - billed for actual days used) $20,700 Implementation & Project Management $7,375 Services include the planning and evaluation of current hardware and network, sources and format of legacy data, potential integration with existing systems, software installation, data conversion and training. * Note: Client has option to pay for programs over multiple budget years, interest free. Total $125,000 Please mark the box if you wish to take advantage of our payment plan. 2 – year Payment will be spread over multiple budget years, interest free. Annual Service and Support The first year is free, which includes new features and unlimited telephone support for the Equalizer Systems. Service and support for years 2 and 3 will be as follows, billed annually: General Ledger $2,520 Accounts Payable $2,140 Payroll System $2,770 Human Resources $2,520 Timesheets $1,540 Miscellaneous Receivables $2,140 Fixed Assets $2,140 Total: $15,770 BS&A Software, Inc. guarantees that the annual fee will not change for 3 years from the date of the executed Service Agreement issued upon purchase of the system(s). After 3 years from the purchase date, BS&A Software reserves the right to increase the fee by no more than the cumulative yearly CPI. Important Proposal Notes: BS&A Software promises that if you are not satisfied with our products or services after the first year, you may return the program and we will fully refund the purchase price of your software. * Prices above DO NOT include: Program Customization or Training beyond the estimated days * Dot-Matrix printers are not compatible with the .Net Programs’ Prices good for a period of 90 days from date on proposal. 3 14965 Abbey Lane Bath, MI 48808 Phone: 517-641-8900 Fax: 517-641-8960 Recommendation: SQL Server - Based on user count, the version of SQL that BS&A Software recommends is as follows. Please see the o Standard Edition attached Microsoft SQL pricing list, which includes o Enterprise Edition Governmental Reseller contact information. Internet & Server Considerations: *We strongly recommend you have Internet Access. This allows you to: a) Download BS&A Software .NET Program Updates as soon as they become available. This can save you several days of transit time when you are waiting for a new features you may have requested. b) Send email to our web site when you have questions or comments about our software and service. *We strongly recommend you have a network with a dedicated file Server…not a Peer-to-Peer Network. Peer-to-Peer Networks are typically less stable and more prone to problems as compared to networks with dedicated file servers. Our software runs much more efficiently on networks with a dedicated file server. See our Hardware Specifications for more details. Signature below constitutes: 1) An order for products & services as quoted in this proposal 2 That you have read and concur with the hardware specifications required to efficiently operate the .Net applications. Quoted by: Steve Rennell , January 18, 2012 Accepted by: , Date: Prices good for a period of 90 days from date on proposal. 4 14965 Abbey Lane Bath, MI 48808 Phone: 517-641-8900 Fax: 517-641-8960 Please complete the following for our records Contact Person for SUPPORT & NEWSLETTERS: Contact Name __________________ _Title__________________________________ Mailing Address ______________________________________ (if PO Box, please provide Street Address for UPS or Overnight Mail Shipments) Street Address City, State Zip Phone Number Fax Number Email Contact Person for PROGRAM UPDATES: Contact Name _____________________ Title___________________________________ Phone Number Email IT Contact Person: Contact Name ______________________ Title___________________________________ Phone Number Email Please Fax Back All Pages Prices good for a period of 90 days from date on proposal. 5 Commission Meeting Date: February 14, 2012 Date: January 30, 2012 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: PILOT Request (Bayview Towers)- Ordinance Amendment, Second Reading SUMMARY OF REQUEST: Carl Skrzynski is Vice President of American Community Developers, Inc., which has purchased Bayview Towers in Muskegon. There is currently a PILOT for Bayview Towers which was approved in January 1980. Mr. Skrzynski intends to keep the existing Section 8 status of the housing development and is requesting an extension of the PILOT from the City. Since an alternative form of financing is being sought for this project, not currently included in the PILOT Ordinance, an amendment is necessary to the Ordinance. In addition, the owner is requesting the PILOT for a maximum of 40 years and the current Ordinance only allows for 25 years. The Commission approved the Ordinance Amendment on January 24 by a 4-3 vote. Therefore, it is necessary to have a second reading. In addition, the ordinance amendment approved by the Commission on January 24th gave only 24 months for the developer to obtain MSHDA financing. In actuality, it should be 27 months (Section 82-50 (4) (4)- attached). FINANCIAL IMPACT: The Ordinance amendment would allow for a greater number of years, which would increase the number of years that the City would not receive full taxes for the property. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: If the City Commission agrees that the PILOT is necessary for this property, staff recommends that the attached Ordinance amendment be approved and the Clerk be authorized to sign the necessary documents. Commission Meeting Date: February 14, 2012 Date: January 30, 2012 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: PILOT Request (Bayview Towers)- Contract Revision SUMMARY OF REQUEST: The PILOT Contract between Bayview Partners Limited Dividend Housing Association L.L.C. and the City of Muskegon was approved by the City Commission on January 24, 2012. However, the length of time allowed for the developer to obtain a reservation of low income housing tax credits, or an Authority loan commitment or a HUD-insured loan should have read “twenty seven months”, not “two years”. The updated Contract is attached. FINANCIAL IMPACT: With the current PILOT, the owner of Bayview Towers pays approximately $91,000 a year (Shelter Rent Payment of $34,000 and City Service Charge Payment of $57,000). If this property were to return to traditional property taxes, the owner would pay approximately $282,902 for a year (see attachment). Therefore, there is a difference of approximately $191,902 a year. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the revised Contract and authorize the Mayor and Clerk to sign.
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