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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 13, 2012
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Poverty Exemption Guidelines for Board of Review. FINANCE
C. SCADA Computer Upgrade Proposal for Water Filtration Plant. PUBLIC
WORKS
D. Deficit Elimination Plan for Home Rehabilitation Fund and State Grants
Fund. FINANCE
E. Union Contract Agreement – Service Employees International Union
(SEIU), Local 517M (Clerical). CITY MANAGER
F. Union Contract Agreement – Service Employees International Union
(SEIU), Local 517M Unit 2. CITY MANAGER
PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – Graphics
House. PLANNING & ECONOMIC DEVELOPMENT
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
A. Transmittal of 6/30/12 Comprehensive Annual Financial Report.
FINANCE
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 to request a representative to dial (231) 724-6705.
Date: November 13, 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 October 23rd
City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 23, 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, October 23, 2012.
Mayor Gawron opened the meeting with a prayer from George Monroe from
the Evanston Avenue Baptist Church after which the Commission and public
recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Willie German, Sue Wierengo, Byron Turnquist, Lea Markowski,
and Eric Hood, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Cummings.
2012-78 HONORS AND AWARDS:
A. 2012 Employee Service Awards.
Mayor Gawron and the Commissioners presented the Service Awards to the City
employees thanking them for their years of service.
2012-79 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the October 8th Commission
Worksession Meeting and the October 9th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
C. West Michigan Metropolitan Transportation Planning Program
(WestPlan) Dues FY 2013 (October 1, 2012 – September 30, 2013). CITY
MANAGER
SUMMARY OF REQUEST: To approve the City of Muskegon’s portion of the
WestPlan dues, payable to West Michigan Shoreline Regional Development
Commission. This agency determines projects and distributes federal
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transportation funds.
FINANCIAL IMPACT: $16,040.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve this request.
D. Polling Place Accessibility Improvement Grant. CITY CLERK
SUMMARY OF REQUEST: The Michigan Department of State has issued a grant in
the amount of $48,660 to the City to make various improvements to polling
locations for accessibility. Polling locations are currently located in City buildings
and School buildings.
Before actual repairs are made, agreements will need to be signed authorizing
the building to be used as a polling location for six years.
FINANCIAL IMPACT: Engineering costs. There is no match to the grant.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the agreements with the condition that
we secure six year agreements for use of the buildings as a polling location.
E. U. S. Environmental Protection Agency (USEPA) Grant Submittal.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Site Assessment grants that the City of Muskegon
has received through the United States Environmental Protection Agency
(USEPA) and the Michigan Department of Environmental Quality (MDEQ) have
been invaluable in assisting the development of our community. Unfortunately,
the current USEPA Site Assessment funds have nearly been exhausted. However,
we would like to apply for the 2012 USEPA Hazardous Substances and Petroleum
Brownfield Assessment Grant. The application is due November 19, 2012.
Envirologic Technologies Inc. (Kalamazoo), our current USEPA grant manager,
has once again agreed to prepare the grant on the City of Muskegon’s behalf
(with assistance from our staff). The City will apply for both “hazardous
substances” and “petroleum” brownfield assessment funds. The City will go
through a RFP process for environmental consultants if we are approved for the
grants.
FINANCIAL IMPACT: If approved, the City of Muskegon will receive up to
$200,000 in hazardous substances assessment funds and up to $200,000 in
petroleum assessment funds to assist in brownfield redevelopment.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign.
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F. Lynx Network – Request for Permit Under METRO Act. ENGINEERING
SUMMARY OF REQUEST: Approve the request for a permit from the LYNX Group
and authorize the Mayor to sign the Unilateral permit form.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request for a permit to install fiber
optics in the City’s right of way; Terrace and Clay area.
G. Amendment to the Zoning Ordinance. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Section 1504 of the
zoning ordinance amend the preamble of the WI-PUD, Waterfront Industrial
Planned Unit Development Districts to modify dimensional requirements on new
principal buildings.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their October 11, 2012, meeting by a unanimous
decision.
H. Amendment to the Zoning Ordinance. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Section 1504 of the
zoning ordinance to allow manufacturing when associated with port activity as
a use permitted in WI-PUD, Waterfront Industrial Planned Unit Development
Districts.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their October 11, 2012, meeting by a unanimous
decision.
I. Liquor License Request – Unruly Brewing Company, LLC, 360 W.
Western. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Unruly Brewing Company, LLC, for a new
Micro Brewer License and a Small Wine Maker License located at 360 W.
3
Western Avenue.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Hood, second by Vice Mayor Spataro to approve the
Consent Agenda as read except item B.
ROLL VOTE: Ayes: Wierengo, Turnquist, Markowski, Gawron, Hood, Spataro, and
German
Nays: None
MOTION PASSES
2012-80 ITEM REMOVED FROM THE CONSENT AGENDA:
B. SECOND READING: Eliminate On-Street Parking Prohibition During
Winter Months. CITY MANAGER
SUMMARY OF REQUEST: To amend Chapter 92, Article II, of the Code of
Ordinances of the City of Muskegon to repeal Section 8.31, which prohibited
parking on the street between 2:00 a.m. and 6:00 a.m. on any day between the
dates of November 15 and April 15 or any other time when snow removal is
necessary.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the ordinance amendment.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to approve
the elimination of on-street parking prohibition during winter months.
ROLL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
Turnquist
Nays: None
MOTION PASSES
2012-81 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – Forming
Technologies. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended,
Forming Technologies, LLC, 1885 E. Laketon Ave., has requested the issuance of
an Industrial Facilities Tax Exemption Certificate. The total capital investment will
be $70,694 in real property and $561,059 in personal property and will create 21
jobs. This qualifies them for a tax abatement of 12 years on real property
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and 9 years on personal property.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of 12 years for real property and 9
years for personal property.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from David Hembree, 1885 W. Laketon,
representative from Forming Technologies.
Motion by Commissioner Hood, second by Vice Mayor Spataro to close the
Public Hearing and approve the resolution granting an Industrial Facilities
Exemption Certificate for a term of 12 years for real property and 9 years for
personal property for Forming Technologies.
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Wierengo, Turnquist, and
Markowski
Nays: None
MOTION PASSES
2012-82 NEW BUSINESS:
A. First Quarter 2012-13 Budget Reforecast. FINANCE
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2012-13
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. This year there
are more changes than normal for the first quarter reforecast.
FINANCIAL IMPACT: Specific proposed changes to the budget include:
• The beginning fund balance for the General Fund is $5,020,045 (as
audited) up from $4,576,273 estimated at the time the budget was
prepared;
• General Fund revenues are reforecast to be $271,412 (-1.2%) lower than
originally budgeted. The decrease is mostly attributable to the following
changes:
• Lower property tax revenues due to the tax appeal settlement with
Consumers Energy;
• This loss is somewhat offset by estimated higher income tax and
state shared revenues;
• General Fund expenditures are estimated to be $633,024 (-2.6%) lower
than originally budgeted:
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• Benefit costs are projected lower for all departments due to better
than expected actuarial valuation results for retiree healthcare and
pensions.
• Privatization of inspections and the new streetlighting contract with
Consumers Energy also contribute to lower costs;
• The contingency account is increased $150,000 for possible tax
appeal outcomes.
• The General Fund operating deficit is $214,126 as compared to $575,738
when the original budget was adopted.
BUDGET ACTION REQUIRED: City Commission approval of this reforecast will
formally amend the City’s 2012-13 budget.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to approve
the First Quarter 2012-2013 Budget Reforecast.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
and Hood
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:04 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
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Date: November 13, 2012
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Poverty Exemption Guidelines for Board of Review
SUMMARY OF REQUEST: Due to recent court decisions and policy changes
by the State Tax Commission, the County Equalization Department has requested
the City amend its Board of Review Poverty Exemption Guidelines.
The attached Resolution to Adopt Poverty Exemption Income Guidelines and Asset
Test has been prepared to meet these new standards.
FINANCIAL IMPACT: The revised guidelines provide clarification to the Board of
Review in the granting of poverty-based tax exemptions.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the poverty guideline resolution as
requested by the County Equalization Department.
COMMITTEE RECOMMENDATION: None.
Resolution to Adopt Poverty Exemption Income Guidelines and Asset Test
WHEREAS, the principal residence of persons who, in the judgment of the
City Assessor and Board of Review, by reason of poverty, are unable to
contribute to the public charges is eligible for exemption in whole or part
from taxation under the General Property Tax Act; and
WHEREAS, the City Commission is required by Section 7u of the General
Property Tax Act, Public Act 206 of 1893 (MCL 211.7u), to adopt guidelines
for poverty exemptions:
NOW, THEREFORE BE IT HEREBY RESOLVED. pursuant to MCL 211.7u, that
the City of Muskegon, Muskegon County adopts the following guidelines for
the City Assessor and Board of Review to implement.
The guidelines shall include but not be limited to the specific income and
asset levels of the claimant and all persons residing in the residence filed in
the current and immediately preceding year.
To be eligible, a person shall do all of the following on an annual basis:
1. Be an owner of and occupy as a principal residence the property for
which an exemption is requested.
2. File a claim with the City Assessor or Board of Review, accompanied
by Federal and State income tax returns for all persons residing in the
residence filed in the immediately preceding year or in the current
year or an affidavit for all personas residing in the residence who
were not required to file federal or state income tax returns for the
current or preceding year.
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3. Produce a valid drivers’ license or other form of positive
identification if requested.
4. Produce a deed, land contract or other evidence of ownership of the
property for which an exemption is requested if requested.
5. Meet the federal poverty income guidelines as defined and
determined annually by the United States Office of Management and
Budget (or its successor).
6. Total household assets, except for the principal residence being
claimed, essential household goods and one motor vehicle may not
exceed $20,000 for the entire household. Assets include, but are not
limited to real estate, motor vehicles, recreational vehicles and
equipment, time shares, certificates of deposit, savings accounts,
checking accounts, stocks bonds, life insurance, retirement funds,
antiques and collectibles, etc. Assets do not include basic essential
household goods such as furniture, appliances, dishes and clothing.
The value of assets will not be reduced by the amount of any
indebtedness owed on such assets or any indebtedness otherwise
owed by the applicant or members of the household.
BE IT ALSO RESOLVED that the Board of Review shall follow the above
stated policy and Federal guidelines in granting or denying an exemption,
unless the Board of Review determines that there are substantial and
compelling reasons why there should be a deviation from the policy and
Federal guidelines and these are communicated in writing to the claimant.
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89 (Rev. 01-11)
STATE OF MICHIGAN
DEPARTMENT OF TREASURY
RICK SNYDER ANDY DILLON
LANSING
GOVERNOR STATE TREASURER
BULLETIN NO. 5 of 2012
POVERTY EXEMPTIONS
May 29, 2012
Assessor and Equalization Directors
TO:
State Tax Commission
FROM:
Poverty Exemptions
SUBJECT:
Bulletin 7 of 2010 is rescinded. This Bulletin has been updated to reflect changes in
what is considered income for the asset test, due to the Court of Appeals
determination in Ferrero v Township of Walton. These changes are described in
Section C below. Also included are changes in the requirement of federal and state
income tax returns due to the passage of Public Act 135 of 2012.
The purpose of this bulletin is to provide additional guidance to assessors and
Equalization Directors to provide to Boards of Review regarding poverty exemptions,
MCL 211.7u.
If a person’s financial situation prevents them from being able to pay the property taxes
on his/her home is there a way to reduce the amount of property taxes the taxpayer must
contribute?
MCL 211.7u of the General Property Tax Act, MCL 211.1, et. seq., allows a property tax
exemption for the principal residence of persons who, in the judgment of the supervisor
and board of review, by reason of poverty, are unable to contribute to the public charges.
To be eligible for the poverty exemption, a person must own and occupy the principal
residence for which the exemption is requested, file a claim (each year the exemption is
sought) with the supervisor or board of review on the city/township's form, along with
federal and state income tax returns for all persons residing in the principal residence or
file an affidavit for all persons residing in the residence who were not required to file
federal or state income tax returns for the current or preceding tax year, show proof of
ownership, and meet federal poverty income standards annually determined by the U.S.
Office Department of Health and Human Services or standards adopted by the local
assessing unit’s governing body (if the local assessing unit’s standards are less strict than
the federal guidelines). See Section D: Filing for the Poverty Exemption below.
P.O BOX 30471 x LANSING, MICHIGAN 48909-7971
www.michigan.gov/statetaxcommission x (517) 335-3429
A. Poverty Exemption Guidelines Options
MCL 211.7u was significantly altered by PA 390 of 1994 and was further amended by
PA 620 of 2002 and PA 104 of 2003.
Pursuant to MCL 211.7u(2)(e), local governing bodies are required to adopt guidelines
that set income levels for their poverty exemption guidelines and those income levels
shall not be set lower by a city or township than the federal poverty guidelines updated
annually by the U.S. Department of Health and Human Services. This means, for
example, that the income level for a household of 4 persons shall not be set lower than
$22,100, shown in the chart in Section B below. The income level for a family of 4
persons, however, may be set higher than $22,100 by the local assessing unit.
In order to determine a taxpayer’s eligibility for poverty exemption guidelines, PA 390 of
1994 states that the poverty exemption guidelines established by the governing body of
the local assessing unit shall also include an asset level test. An asset test means the
amount of cash, fixed assets or other property that could be used, or converted to cash for
use in the payment of property taxes for the year the property exemption claim was filed.
The asset test should calculate a maximum amount permitted and all other assets above
that amount should be considered as available. The determination of the amount of the
asset level test is left to the discretion of the local assessing unit.
B. Federal Poverty Guidelines Used in the Determination of Poverty
Exemptions for 2012.
The following are the federal poverty guidelines for use in setting poverty exemption
guidelines for the 2012 assessments.
Size of Family Unit Poverty Guidelines
1 $ 10,900
2 $ 14,700
3 $ 18,500
4 $ 22,400
5 $ 26,200
6 $ 30,000
7 $ 33,800
8 $ 37,600
For each additional person $3,800
The income guidelines shall include, but are not limited to, the specific income for the
person claiming the exemption, and should also include anyone else who is living at the
claimant’s household. According to the U.S Census Bureau, “income” includes:
x Money, wages, and salaries before any deductions.
x Net receipts from non-farm self-employment. (These are receipts from a person’s
own business, professional enterprise, or partnership, after deductions for business
expenses.)
P.O BOX 30471 x LANSING, MICHIGAN 48909-7971
www.michigan.gov/statetaxcommission x (517) 335-3429
x Net receipts from farm self-employment. (the same provisions as above for self-
employment.)
x Regular payments from social security, railroad retirement, unemployment,
worker’s compensation, veteran’s payments and public assistance.
x Alimony, child support, and military family allotments.
x Private pensions, governmental pensions, and regular insurance or annuity
payments,
x College or university scholarships, grants, fellowships, and assistantships.
x Dividends, interest, net rental income, net royalties, periodic receipts from estates
or trusts, and net gambling or lottery winnings.
For example, it is possible that a claimant might meet the income test for the poverty
exemption for all the persons living at the claimant’s household but the claimant does not
meet the asset level test of the entire household or some additional test adopted by the
local governing body. In this situation the claimant would not qualify for the poverty
exemption even though the income level for the entire household test was met.
C. Asset Tests for the Poverty Exemption
The local governing body must adopt poverty exemption income guidelines and an asset
level test. The asset test may include a variety of assets that the board believes should be
considered in determining the applicant's eligibility. The asset test, however, does not
include the principal residence.
According to the Michigan Tax Tribunal in Robert Taylor v Sherman Twp. (MTT Small
Claims Division, Docket No. 236230, August 13, 1997), the Tax Tribunal views the
'asset test' to be an indication of funds available which might be used to pay one's taxes.
In Taylor, Tax Tribunal held, “If the equity of the homestead is included, it would require
the Petitioner to sell his homestead or borrow against the equity to pay the taxes. The
Tribunal finds that the inclusion of the value of the equity is inconsistent with the basic
intent of the granting of poverty exemptions, that being to enable the petitioning party to
maintain their homestead."
The Michigan Court of Appeals ruled in Ferrero v Township of Walton (302221) that
monies received pursuant to MCL 206.520 (homestead property tax credit) is a rebate of
property taxes and is not income for purposes of MCL 211.7u.
The local governing body should set a maximum asset amount that would likely result in
receiving a 0% poverty exemption. This could be either a dollar amount or a percentage
of total income.
For example, a governing body could decide that claimants with a total asset value of
$15,000 or more will receive a 0% poverty exemption, even though they meet the federal
poverty income guidelines. Or, another township could decide that its maximum value of
assets eligible for the exemption is $150,000.
P.O BOX 30471 x LANSING, MICHIGAN 48909-7971
www.michigan.gov/statetaxcommission x (517) 335-3429
Based upon the assets listed on a poverty exemption application, the Board of Review
may grant the application a 0% to 100% exemption. This does not preclude the local
governing body with from allowing an applicant to own other things, in addition to the
house and still receive a poverty exemption. Possible examples include:
x Additional vehicles
x More land than a minimum “footprint” for the home
x Equipment or other personal property of value, including recreational vehicles
(campers, motor homes, boats, ATV’s etc.)
x Bank account(s) up to a specified amount
A local governing unit, however, may require an applicant to list all of his/her assets to
apply for a poverty exemption. Below are some examples of assets the local governing
may choose to ask an applicant to list. (This is not an exhaustive list).
x A second home
x Land
x Vehicles
x Recreational vehicles such as campers, motor-homes, boats and ATV’s
x Buildings other than the residence
x Equity in the residence above a specified amount
x Jewelry
x Antiques
x Artworks
x Equipment
x Other personal property of value
x Bank accounts over a specified amount
x Stocks
x Money received from the sale of property such as stocks, bonds, a house or a car
unless a person is in the specific business of selling such property.
x Withdrawals of bank deposits and borrowed money.
x Gifts, loans, lump-sum inheritances, and one-time insurance payments.
x Food or housing received in lieu of wages and the value of food and fuel
produced and consumed on farms.
x Federal non-cash benefits programs such a Medicare, Medicaid, food stamps, and
school lunches.
Pursuant to PA 390 of 1994, all local governing units shall make available the local
policy and guidelines established for granting poverty exemptions to a requesting
taxpayer.
The local governing unit is required by MCL 211.7u(5) to follow the established policy
and guidelines of the local assessing unit in granting or denying a poverty exemption.
MCL 211.7u(5), permits the Board of Review to deviate from this mandate only when
there are “substantial and compelling reasons why there should be a deviation from the
P.O BOX 30471 x LANSING, MICHIGAN 48909-7971
www.michigan.gov/statetaxcommission x (517) 335-3429
policy and guidelines.” If the Board of Review deviates from the policy and guidelines,
they are required by statute to communicate the substantial and compelling reasons for
the deviation from the guidelines in writing to the claimant.
For example, a wife suffers a catastrophic illness, and the husband is forced to reduce his
work hours to care for her. Their medical bills exceed their insurance coverage and they
have used their savings, credit and income to pay those bills, leaving no funds to pay the
taxes. Even if their assets exceed the township’s maximum asset amount, a board of
review might consider these substantial and compelling reasons to deviate from the
guidelines.
D. Filing Requirements for the Poverty Exemption
In order to be eligible for the poverty exemption, the claimant must do all of the
following on an annual basis.
1) Own and occupy as a principle residence for which the exemption is
requested.
2) File a claim with the supervisor or the local board of review after January 1st
but before the day prior to the last day of the Board of Review on a form
provided by the local assessing unit. (Note: the filing of this claim constitutes
an appearance before the March Board of Review for the purpose of
preserving the right to appeal to the Michigan Tax Tribunal).
3) Provide federal and state income tax returns for all persons residing in the
principal residence including any property tax credit returns. These income
tax returns shall include those filed in the current year or in the immediately
preceding year. An affidavit may be filed for all persons residing in the
residence who were not required to file federal or state income tax returns in
the current year or in the immediately preceding year.
4) Produce a valid driver’s license or other form of identification if requested by
the supervisor or board of review.
5) Produce a deed, land contract, or other evidence of ownership of the property
for which an exemption is being requested if requested by the supervisor or
the board of review.
6) Meet the federal poverty income standards as defined and determined
annually by the United States Department of Health and Human Services OR
meet the alternative income standards adopted by the local governing body.
Important: alternative guidelines shall not require less income to qualify
for the poverty exemption than the federal guidelines require.
7) Meet the asset levels set by the local governing body.
8) Meet any other tests that may be set by the local governing body.
P.O BOX 30471 x LANSING, MICHIGAN 48909-7971
www.michigan.gov/statetaxcommission x (517) 335-3429
E. Poverty Exemption for Principal Residence and Qualified
Agricultural Property
According to PA 104 of 2003, Eff. January 1, 2004, the poverty exemption only applies
to an individual homeowner for his/her “principle residence.” As used in MCL 211.7u,
“principle residence” means a principle residence or a qualified agricultural property as
defined by MCL 211.7dd.
No property owned by a corporation may receive the poverty exemption. This means
that even if a corporation meets the definition of a principal residence or of qualified
agricultural property a corporation shall not be eligible to receive the poverty exemption.
F. Requesting a Poverty Exemption and Appealing Assessment
PA 390 of 1994 allows a claimant requesting a poverty exemption to also appeal his/her
assessment before the March Board of Review in the same year.
G. Appealing BOR decisions regarding the Poverty Exemption to the
MTT
A property owner or an assessor may appeal the March Board of Review’s decision
granting or denying a poverty exemption to the Michigan Tax Tribunal. Appeals to the
MTT must be made by July 31 of the same year.
H. Partial Poverty Exemption for Principal Residences and Qualified
Agricultural Property
PA 390 of 1994 allows for partial poverty exemptions. A partial poverty exemption is an
exemption of only a part of the taxable value of the property rather than the entire taxable
value. The local governing body could limit its poverty exemptions to partial exemptions
or to minimum or maximum exemptions of their choosing.
I. Comments by the State Tax Commission
The State Tax Commission is concerned regarding the apparent trend toward the abuse of
the poverty exemption. The rules and guidelines that PA 390 of 1994 will enable local
units to more fairly and consistently exempt qualifying property owners, and will provide
better audit tools to local units and the State Tax Commission to prevent abuse of the
exemption. Assessors, Boards of Review and Supervisors should all be aware that the
1963 Michigan Constitution still provides a narrow construction of what is, and what is
not exempt. Only those poverty exemptions where the claimant meets the requirements
of the Act should be granted.
P.O BOX 30471 x LANSING, MICHIGAN 48909-7971
www.michigan.gov/statetaxcommission x (517) 335-3429
AGENDA ITEM NO. ___________________
CITY COMMISSION MEETING _____________________________
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: October 30, 2012
RE: Union Contract Agreement – Service Employees International Union (SEIU),
Local 517M (Clerical)
SUMMARY OF REQUEST:
To approve an agreement with SEIU, Local 517M (Clerical) to extend their union contract for
one year (through December 31, 2013) under the same terms (no salary increase) and
conditions.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached agreement to extend the union contract with SEIU, Local 517M and
authorize the Mayor and Clerk to execute it.
COMMITTEE RECOMMENDATION:
None.
pb\AGENDA\SEIU 517M 2013 LBR ARMNT EXTNSN
AGREEMENT TO CONTINUE COLLECTIVE BARGAINING AGREEMENT
This agreement is effective on January 1, 2013, between the City of Muskegon
(hereinafter referred to as “EMPLOYER”) and the Service Employees International
Union, Local 517M (hereinafter referred to as “UNION”).
RECITALS
1. The Employer and the Union are currently parties to a collective bargaining
agreement (CBA) that expires on December 31, 2012.
2. The Employer and the Union desire to extend the current CBA under its current terms
and conditions (including no salary increase) for one year (through December 31,
2013).
NOW THEREFORE, the parties agree to extend the current CBA under the terms
included in the RECITALS stated above.
IN WITNESS WHEREOF, the parties have caused this instrument to be executed this
__________ day of _________________________, 2012.
SERVICE EMPLOYEES INTERNATIONAL CITY OF MUSKEGON
UNION, LOCAL 517M
_______________________________ ______________________________
Christine Fahl Stephen J. Gawron
Business Representative Mayor
_______________________________ ______________________________
Janice LaBrenz Ann Cummings
Unit President City Clerk
pb\UNION\SEIU 517M\2013 SEIU 517M CBA EXTNSN
AGENDA ITEM NO. ___________________
CITY COMMISSION MEETING _____________________________
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: October 30, 2012
RE: Union Contract Agreement – Service Employees International Union (SEIU),
Local 517M, Unit 2
SUMMARY OF REQUEST:
To approve an agreement with SEIU, Local 517M, Unit 2 to extend their union contract for one
year (through December 31, 2013) under the same terms (no salary increase) and conditions.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached agreement to extend the union contract with SEIU, Local 517M and
authorize the Mayor and Clerk to execute it.
COMMITTEE RECOMMENDATION:
None.
pb\AGENDA\SEIU 517M UNIT 2, 2013 LBR ARMNT EXTNSN
AGREEMENT TO CONTINUE COLLECTIVE BARGAINING AGREEMENT
This agreement is effective on January 1, 2013, between the City of Muskegon
(hereinafter referred to as “EMPLOYER”) and the Service Employees International
Union, Local 517M, Unit 2 (hereinafter referred to as “UNION”).
RECITALS
1. The Employer and the Union are currently parties to a collective bargaining
agreement (CBA) that expires on December 31, 2012.
2. The Employer and the Union desire to extend the current CBA under its current terms
and conditions (including no salary increase) for one year (through December 31,
2013).
NOW THEREFORE, the parties agree to extend the current CBA under the terms
included in the RECITALS stated above.
IN WITNESS WHEREOF, the parties have caused this instrument to be executed this
__________ day of _________________________, 2012.
SERVICE EMPLOYEES INTERNATIONAL CITY OF MUSKEGON
UNION, LOCAL 517M, UNIT 2
_______________________________ ______________________________
Christine Fahl Stephen J. Gawron
Business Representative Mayor
_______________________________ ______________________________
Troy Marciniak Ann Cummings
Unit President City Clerk
pb\UNION\SEIU 517M\2013 SEIU 517M UNIT 2 CBA EXTNSN
Commission Meeting Date: November 13, 2012
Date: November 8, 2012
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request for an Industrial Facilities Exemption
Certificate – Graphics House
SUMMARY OF REQUEST:
Pursuant to Public Act 198 of 1974, as amended, Graphics House Sports Promotions, Inc,
has requested the issuance of an Industrial Facilities Tax Exemption Certificate. The
company will be investing $131,067 in real property and $135,092 in personal property. The
investment is expected to create three jobs. This qualifies them for a tax abatement of six
years on personal property and 12 years on real property.
FINANCIAL IMPACT:
The City will capture certain additional property taxes generated by the expansion (see
attached Summary Sheet).
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of six years for personal property and twelve years for real property.
COMMITTEE RECOMMENDATION:
None
11/8/2012
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
GRAPHICS HOUSE SPORTS PROMOTIONS, INC
WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on March
27, 2012, this Commission by resolution established an Industrial Development District as
requested by Graphics House Sports Promotions, Inc, including the property they own at 444
Irwin Ave, Muskegon, Michigan 49442; and
WHEREAS, Graphics House Sports Promotions, Inc has filed an application for the issuance of an Industrial
Facilities Tax Exemption Certificate with respect to new machinery and equipment that has been
installed within said Industrial Development District ; and
WHEREAS, said application was filed no later than six months after project completion and the Muskegon City
Commission held a public hearing on November 13, 2012, 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, 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
WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will
not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real
property thus exempted.
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 Certificate considered together with
the aggregate amount of certificates previously granted and currently in force under 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 Graphics House Sports Promotions, Inc , for the issuance of an Industrial
Facilities Tax Exemption Certificate with respect to the installation of new machinery and
equipment on the following described parcel of real property situated within the City of Muskegon
to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903 THAT PART OF BLK 96 & VAC NIMS ST DESC AS
COM AT SW COR OF SD BLK FOR POB TH N ALG W LN OF SD BLK 330 FT TH E AT RT ANGLES TO
W LN 235.86 FT TO NELY LN OF BLK 96 & SWLY LN OF SD VAC NIMS ST TH N 48D 47M 35S E 35.47
FT TO CL OF VAC NIMS ST TH SELY ALG CL ON ARC OF A SPIRAL CURVE TO LT TO THE N OF
IRWIN AVE (THE LONG CHORD OF SD SPIRAL CURVE BEARS S 42D 01M 30S E 466.40 FT) TH S 89D
18M 45S W ALG SD N LN IRWIN AVE 574.81 FT TO POB
11/8/12
3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
effect for a period of _______ years on personal property and ________ years on real property.
Adopted this 13th Day of November 2012.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen Gawron
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 13, 2012.
______________________________
Ann Cummings
Clerk
11/8/12
Date: November 13, 2012
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Transmittal of 6/30/12 Comprehensive Annual Financial Report
SUMMARY OF REQUEST: The City's June 30, 2012 Comprehensive Annual
Financial Report (CAFR) has previously been distributed to City Commissioners via
both email and hard copy. The CAFR is also available on the City’s website at
www.shorelinecity.com. At this time the CAFR is being formally transmitted to the
Commission in accordance with state law. The CAFR has been prepared in
accordance with GASB accounting standards. The CAFR also includes the single-
audit of federal grants received by the City.
FINANCIAL IMPACT: The CAFR report summarizes the City's financial activities
for the year and includes the independent auditor's unqualified opinion on the City's
financial statements.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Acceptance of the CAFR for the period ended
6/30/12.
COMMITTEE RECOMMENDATION: None.
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