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CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Monday, April 7, 2008
5:30 p.m.
City Commission Chambers
AGENDA
1. 2007 Audit Review. (Finance)
2. Roadway Changes to Facilitate Bike Path on Lakeshore Drive.
3. Any Other Business
4. Adjournment
City of Muskegon
City Commission Worksession
April 7, 2008
City Commission Chambers
5:30 PM
MINUTES
2008-32
Present: Commissioners Warmington, Gawron, Spataro, Wisneski, Shepherd, Gawron (arrived
at 5:45 p.m.), Carter, and Wierenga.
Absent: None.
2007 Audit Review (Finance)
Eric VanDop, of Brickley Delong, gave an overview of the 2007 audit. Mr. VanDop stated that
staff did a great job. The Mayor also thanked city staff.
Roadway Changes to Facilitate Bike Path on Lakeshore Drive
Mohammad Al-Shatel, City Engineer, presented a power point presentation for proposed
roadway changes for a bike path on Lakeshore Drive.
Pros are as follows:
Establish a trail connection between Lakeshore Trail to the new trail along Muskegon Lake to
McCracken
Cost will be less than $100,000
It will preserve on-street parking
There is no need for additional right-of-way
Cons are as follows:
It will be a street bike lane
Eliminates the left tum lane
The terminus points do not provide for a margin of error
Easterly movement bikers will be traveling along parked vehicles
Proposed bike lane is a new concept for residents which may cause confusion
Commissioners requested that staff look further into the proposal and report to Commission.
Any Other Business
Commissioner Gawron indicated that the City Commission will be voting on Community
Development Block Grant funds tomorrow and ask that the board consider adopting the
administration recommendations and include Commissioner Carter's recommendation from a
previous meeting.
Paul Veltkamp, 592 W Muskegon, Muskegon voiced concern regarding the removal of
streelights on Webster Avenue.
Adiournrnent
Motion by Commissioner Carter, seconded by Commissioner Shepherd to adjourn at 6:40
p.m.
MOTION PASSES
~ ,--..,:,\ ~ y -'.,_
Ann Marie Becker, MMC
¼,I.A, JL,"
City Clerk
,. / p I f 7 I~_,-,,_.,.- _ / -- "'-
l EOION
"\ rr
TWo ~ downtown
-
03
streets
By Robert c_ Burns
1:0 oe u1mm1:u -~- f'1,,./
~t1 1 ':".i,•t_:.;.,'f•••; •=:.:...:.:_· 1Twenty ml{!• ~ill@@r Moh;mimed Al-Shatel.
[email protected] ' ., block streetlights By Al-Shatei's ealc11.b1t!olli,
~t~ on Muskegon removing the 20 streetlights will
MUSKEGON - Now that Muskeg-
on's Webster and Muskegon avenues Awnue - shown cost the-city about $13,000. But it will
save the city about $3,600 a year in
are no longer the eq_uivalent of here-and enetgy costs.
urban freeways, it's time to discon- Webster Avenue
IN nect some of the freeway lighting, between Fourth
Al-Shatel listed several other
advantages to the change, including
By action of the Muskegon City and Ninth streets removal of illumination some resi-
ire's liquor Commission Monday, 20 streetlights will soon be dents might find undesirable, the
will be removed from mid-b11lck
1e revoked locations along a flve-block section
removed. possible discouragement of some
through traffic, less clutter along
of Muskegon and Webster between Chronlcle photo narrow terraces, and fewer light
,skegon City Fourth and Ninth streets. • Robert C. Bums poles to worry about during storms.
growing cho- That's the residential portion of
ng a downtown One possible disadvantage: com-
what used to be the downtown U.S. Spring streets. Many residents hlid urged the city plaints from some homeowners who .
lquor license 31 Business Route before that des- Last November, Muskegon and to turn the streets back into·the resi- associate safety with illumination.
ignation was shifted to Shoreline Webster. avenues were converted dential neighborhood streets they City commissioners weighed
tat45E.
.ble criminal Drive last July. back to the two-way streets they were back then. The removal of mid- those choices as well as a third
ily sold beer All existing street.lWits will were until the late 1950s, and park- b lock streetlights conforms to the option of de-energizing some lights
1onNeiger- remain along the much more com- ing was again allowed on both sides lighting standards of most other res- before voting to reduce lighting in
' night of Dec. mercial section between Fourth and of the two streets. idential streets in the city, said City the residential section only.
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Finance
Administration
Memo
To: City Commission
From: Finance Director
Date: April 2, 2008
Re: 2007 Auditors Review - Monday April 7th
As noted in previous communications, printing and distribution of the City's 2007
Comprehensive Annual Financial Report (CAFR) will be delayed until June (possibly
May). We are delaying the CAFR so that we can incorporate information from the
12/31107 MERS actuarial valuations. Normally, year-old actuarial data would be
used; however, this is not possible this year due to the transition from local pension
funds to MERS during 2006-07.
Nonetheless, the auditors have concluded their fieldwork and we thought it better for
them to provide their summary of results at this time rather than waiting until June.
Attached is the Management Discussion and Analysis together with selected
financial statements from the 2007 CAFR that the auditors will focus on in their
comments.
Please let me know if you have any questions.
Thank you.
• Page 1
0 \FINANCEIPAUL\MyDocumenls\MEMO - CITY COMMISSION 2007 Audit Presentation.doc
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the City of Muskegon's annual financial report presents our discussion
and analysis of the City's financial performance during the fiscal year ended December
31, 2007. Please read it in conjunction with the City's financial statements, which follow
this section.
FINANCIAL HIGHLIGHTS
• The assets of the City of Muskegon exceeded its liabilities by $131,868,102 as of
December 31, 2007. Of the total net assets, $18,143,248 (13.8%) was
unrestricted and may be used to meet the City's ongoing obligations to citizens
and creditors.
• The City's total combined net assets increased $2,346,908 during 2007. This
increase is primarily the result of tight budget controls and investment in capital
assets.
• The City's governmental funds reported combined ending fund balance of
$12,233,731, a decrease of $998,380 from the Figure A-1, Required Components of the
prior year. Most of the change results from City's Annual Financial Report
spending down proceeds from long-term debt --------------------,
issued in the prior year for construction of the new '
~~~-
..--- _..l..____
Central Fire Station. 1/uu«ujemeut 'a Basic Required
v--. Financial Supplementary
Information
Statements
• The City's general fund reported a total fund balance ad
of $2,920,632, an increase of $230,593 over the prior A""(7,345,550 (7,971) 7,142,298
Industrial facilities taxes ?
351,8-8 .7
, _.,/,,';/ 35J,8-8 ? "'hi> ?
,;,,364,6_8 12,800 396,366
Payments in lieu of taxes 89,000 { / ,.,89,-000 91,393 2,393 88,871
Delinquent chargeback collected 12,000 ';'~\i\- .,,,_z:{:_£'.f2,ooo (12,000)
Total taxes "-"'~ ,,,J4~806,349 15,420,032 613,683 15,052,708
·,>'
,,
Licenses and pennits
Business licenses 3:2,025 (475) 33,656
Liquor licenses 37,000 (500) 36,452
Cable TV fees 297,200 1,700 285,124
Housing licenses 81,640 6,640 55,623
Rental property registration 695 (805) 12,980
Burial permits 117,703 (2,297) 118,399
Building permits 325,000 348,349 23,349 306,791
Electrical pennits 105,000 106,607 1,607 76,535
Plumbing permits 35,000 34,540 (460) 34,367
Mechanical permits 52,500 52,500 56,016 3,516 45,978
Cat licenses 2,500 2,850 3,740 890 3,115
Police gun registration 3 3 3
Total licenses and pennits 1,015,000 1,082,353 1,115,518 33,165 1,009,023
Intergovernmental revenues
Federal grants 88,325 84,993 84,162 (831) 172,881
State
Grants 18,000 18,500 18,373 (127) 18,302
State shared revenue 4,628,616 4,479,345 4,475,462 (3,883) 4,556,801
Total intergovernmental revenues - state 4,646,616 4,497,845 4,493,835 (4,010) 4,575,103
Local 60,000 60,000 60,000
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
General Fund
For the year ended December 31, 2007
(with comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
final budget-
Budgeted amounts <<'t· positive
Original Final "'✓ Actual (negative) Actual
Charges for services
Tax administration fees $ 216,541 $ 212,530 $ (970) $ 219,172
Utility administration fees 180,000 I 80,000 180,000
Downtown Development Authority administration fees (5,000) 5,000
Reimbursement for elections (58) 13,762
Indirect cost reimbursements 1,024,932 1,045,539
Site plan review fee 5,870 (130) 5,650
Sale of cemetery lots 38,182 (I 8) 27,190
Police miscellaneous 120,470 26,470 97,093
Police impound fees 43,234 (1,766) 49,206
Landlord's alert fee 220 (80) 355
Fire protection-state property 87,601 (20,399) 121,131
Zoning fees 10,362 1,362 13,352
Clerk fees 3,115 (385) 3,330
Clerk fees - passport fees 8,240 (260) 2.520
Tax abatement application fees 16,411 (589) 10,080
Treasurer fees 61,277 (28,723) 73,030
False alarm fees 12,000 12,525 525 14,130
Miscellaneous cemetery income 22,000 20,536 (1,464) 22,772
Senior transit program fees 9,000 9,254 254 10,13 I
Fire miscellaneous 5,000 3,494 (1,506) 3,763
Sanitation stickers 110,000 84,735 (25,265) 87,263
Lot cleanup fees 115,000 70,987 (44,013) 74,581
Reimbursements - lot mowing and demolitions 50,000 40,000 55,484 15,484 65,994
Special events reimbursements 115,000 120,000 92,041 (27,959) 96,691
Recreation program fees 30,000 40,000 41,457 1,457 78,877
Total charges for services 2,207,373 2,338,032 2,224,999 (113,033) 2,320,612
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
General Fund
For the year ended December 31, 2007
(with comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
final budget-
positive
Original Final Actual (negative) Actual
Fines and forfeitures :'\\J.:i>_r
Income tax - penalty and interest $ 200,000 $ ,;i,o;ooo'<; , $ 240,315 $ 10,315 $ 192,822
Late fees on current taxes 38,931 (36,069) 35,701
Interest on !ate invoices 2,151 151 2,112
Parking fines 13,354 (6,646) 87,060
Court fines 190,651 651 208,356
Total fines and forfeitures 585,402 (31,598) 526,05 l
Interest and rental income
Investment earnings 456,224 131,224 416,856
Flea market 22,064 (6,936) 20,736
Farmers' market 40,325 2,825 34,719
City right of way rental 4,400 4,400
Arena events 137,977
Advertising 2,000 (2,000) 284
Fire station lease - Central Dispatch 6,180 6,180
Parking rentals 2,700 2,800 100 2,800
McGraft park rentals 45,000 42,114 (2,886) 44,008
Other park rentals 29,000 302.920 1,920 30,403
Total interest and rental income 480,780 605,027 124,247 692,183
Other
Sale of land and assets 1,000 1,000 (1,000)
Police sale and auction proceeds 1,500 1,500 (1,500)
CDBG program reimbursements 188,000 205,000 225,149 20,149 240,!43
Contributions 11,000 52,000 50,499 (1,501) 17,992
Contribution - Veteran's Park maintenance 17,250 17,250 18,328 1,078 17,977
Community Foundation for Muskegon County 13,000 3,000 (10,000) 11,675
Miscellaneous reimbursements 1,000 1,000 (1,000)
Miscellaneous and sundry 15,000 29,000 53,794 24,794 11,894
Total other 234,750 319,750 350,770 31,020 299,681
Total revenues 24,047,264 24,227,102 24,939,745 652,643 24,648,242
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
General Fund
For the year ended December 31, 2007
(with comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
final budget-
Bud_£eted amounts positive
Ori_£inal Final Actual (ne_£ative) Actual
EXPENDITURES
Current
Public representation services
City commission $ 86,156 80,462 $ 3,661 $ 88,670
City promotions and public relations 9,029 12,729 11,696 1,033 5,402
City manager Z,6,800 213,848 6,952 209,693
Contributions to outside agencies <''C; ?,;:_.187,824 180,880 6,944 176,013
City attorney '\!:-·,, ,'.•' 440,000 440.434 (434) 424,117
Total public representation services \/94.5,476 927,320 18,156 903,895
Administrative services
Administration 126,444 5,281 159,841
City clerk 312,042 277,610 34,432 297,542
Civil service 188,609 163,761 24,848 175,899
Julia Hackley internships 5,374 5,374 4,350
Affirmative action 78,232 71,724 6,508 32,157
Total administrative services 715,982 644,913 71,069 669,789
Financial services
Finance administration 421,292 420,922 423,512 (2,590) 430,314
Assessing 427,490 454,800 459,837 (5,037) 442.617
Arena administration 175,300 175,300 269,434 (94,134) 141,032
Income tax administration 358,668 381,668 373,433 8,235 335,776
Information systems 349,989 356,089 364,246 (8,157) 315,066
City treasurer 346,522 346)22 341,057 ~ 391,775
Total financial services 2,079,261 2,135,301 2,231,519 (96,2 I 8) 2,056,580
Public safety
Police department 8,470,172 8,307,989 8,235,772 72,217 8,232,492
Fire department 3,759,363 3,777,363 3,652,524 124,839 3,719,404
Fire safety inspections 1,014,248 1,017,548 966,136 51,412 994,574
Total public safety 13,243,783 13,102,900 12,854,432 248,468 12,946,470
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
General Fund
For the year ended December 31, 2007
(with comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
final budget-
Bud_£eted amounts positive
_____ Original ____ Final ,,/ Actual (negative) Actual
Public works
Street lighting $ 572,325 $ ,i~p;OOD'z,;\ $ 593,486 $ (3,486) $ 563,184
Community event support 34,750 '32,600 '-;? 1,254,700 S 1,108,348 £ (146,352)
State 4,143,269 '},i 4,143,269 3,825,191 (J 18,078)
Charges for services 300,000 ' ~""'",.175,000 370,376 195,376
Investment earnings ~.;JJ 5,000 116,227 1,227
Other 'iso,ooo 272_:291 22,291
"-'/
Total revenues 5,937;969 5,692,433 (245,536)
EXPENDITURES
Current
Highways, streets and bridges 4,392,900 4,462,763 (69,863)
Debt service
Principal 639,750 640,000 (250)
Interest and fees 28,387 28,638 (25 I)
Total expenditures 5,061,037 5, 131,40 I (70,364)
Excess of revenues over expenditures 27,378 876,932 561,032 (315,900)
OTHER FINANCING SOURCES (USES)
Transfers in 200,000 200,000
Transfers out (600,000) (300,000) 300,000
Total other financing sources (uses) (600,000) (I 00,000) 500,000
Net change in fund balance $ 27,378 $ 276,932 461,032 $ 184,100
Fund balance at January 1, 2007 708,102
Fund balance at December 31, 2007 $ 1,169,134
Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.
City of Muskegon
BUDGETARY COMPARISON SCHEDULE
Local Street Fund
For the year ended December 31, 2007
Variance with
final budget•
Bud_g_eted amounts positive
Ori~inal ,,Final Actual (negative)
REVENUES
Intergovernmental revenues
,,,,<)::~:)'.\-,,
Federal $ 1,300,000 (j;Y $ '<,
OPERATING EXPENSES
Administration
Insurance premiums and claims
<:Ji"' -;:\tl>·· ··\.' -
22,680 814,376 290,568
3,967,287
Wastewater treatment '\;' ,
4,138,818
Filtration plant operations .-.-l~J 18.009 '0'', 1,418,009
Water distribution -;\'it',491,337 1,491,337
Other operations 241,760 241,760 2,850,308
Depreciation and amortization j}
1,784,768 131,017 2,575,690 568,841
•s;~,v•
Total operating expenses 5,189,417 395,457 10,679,990 7,677,004
''ii:~
Operating income (loss) 1,379,811 (113,778) 1,350,012 558,697
NON OPERATING REVENUES (EXPENSES)
Investment earnings 136,511 38 170,594 145,290
Gain on sale of capital assets 12,000
Interest expense (642.594) (667,815)
Total nonoperating revenue (expenses) (506,083) 38 (497,221) 157,290
Income (loss) before transfers 92,803 873,728 (113,740) 852,791 715,987
Transfers in 40,000 40,000 28,046
---
Change in net assets 92,803 873,728 (73,740) 892,791 744,033
Net assets at January 1, 2007 14,450,264 28,915,964 1,403,359 __6_,009,699
Net assets at December 31, 2007 $ 14,543,067 $ 29,789,692 $ 2,329,619 $ 6,753,732
Adjustments to reflect the consolidation of internal service fund activities
related to enterprise funds 92,839
Change in net assets of business-type activities 985,630
'
The accompanying notes are an integral part ofthis statement.