City Commission Packet 02-12-2013

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  CITY OF MUSKEGON
   CITY COMMISSION MEETING
                 FEBRUARY 12, 2013
 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. Gaming License Request from the West Michigan Symphony. CITY
     CLERK
  C. Second Quarter 2012-13 Budget Reforecast. FINANCE
  D. Establish Terrace Plaza Ct. as Street Name. ENGINEERING
  E. Approval of Building Procurement Contractor for Community &
     Neighborhood Services. COMMUNITY & NEIGHBORHOOD SERVICES
  F. Approval of Sale of City-Owned Vacant Lot at 1189 Terrace.
     COMMUNITY & NEIGHBORHOOD SERVICES
  G. New Police Cruisers. PUBLIC WORKS
  H. Transportation Improvements Program Submittal for 2014-2017 Projects.
     ENGINEERING
  I. Contract Extension Agreement: One Year Street Sweeping Contract for
     2013. PUBLIC WORKS
  J. Proposal for Codification of City Ordinances. CITY CLERK
  K. Encroachment Agreement – Placement of Public Benches. CITY CLERK
PUBLIC HEARINGS:
COMMUNICATIONS:
   CITY MANAGER’S REPORT:
   UNFINISHED BUSINESS:
   NEW BUSINESS:
       A. 2013-2014 Labor Agreement with Police Command Union.                                          CITY
          MANAGER
   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: To Discuss Pending Litigation.
   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:     January 22, 2013
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 7th
Commission Worksession Meeting and the January 8th City Commission
Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     JANUARY 22, 2013
    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, Michigan at 5:30 p.m., Tuesday, January 22, 2013.
Mayor Gawron opened the meeting with a prayer from Pastor Tim Cross from
the Living Word 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 Byron Turnquist, Lea Markowski, Eric Hood, Willie German, and
Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Cummings.
2013-03 HONORS AND AWARDS:
      A. Norma DeYoung – President of Angell Neighborhood Association.
      B. Lila DeYoung – Member of Angell Neighborhood Association.
Mayor Warmington recognized Norma DeYoung and Lila DeYoung for their
twenty-five years of service as members of the Angell Neighborhood
Association.
2013-04 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the January 7th Commission
Worksession Meeting and the January 8th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      D. Agreement for Service – Blood Alcohol Draws. PUBLIC SAFETY
SUMMARY OF REQUEST: Muskegon Police Department utilizes Pro-Med Team Inc.
to perform “blood alcohol draws”, relating to arrested person(s) in order to
determine blood alcohol content. The service shall be provided at a rate of
$75 per draw.
                                    1
The agreement shall be for the calendar year of 2013, and can be terminated
within a 30-day written notice. This has been our current service vendor in the
past and present.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
      E. Termination of “Joint Agreement for Cooperative Programming and
         Facility Use Between City of Muskegon Department of Leisure Services
         and Muskegon Public Schools”.           PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: A joint agreement was entered into between the City
and the Schools on May 26, 1998. The Agreement outlined usage of facilities
between the entities. Since much of the Agreement is no longer relevant,
termination of the Agreement is requested.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff requests that the City Commission terminate
the Agreement, consistent with the “term” of the Agreement.
Motion by Vice Mayor Spataro, second by Commissioner Hood to approve the
Consent Agenda with the exceptions of items B, C, F, and G.
ROLL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
           Turnquist
            Nays: None
MOTION PASSES
2013-05 ITEMS REMOVED FROM THE CONSENT AGENDA:
      B. Gaming License Request from The          Foundation    for   Muskegon
         Community College, Inc. CITY CLERK
SUMMARY OF REQUEST: The Foundation for Muskegon Community College, Inc.,
221 S. Quarterline Road, Muskegon, MI, is requesting a resolution recognizing
them as a non-profit organization operating in the City for the purpose of
obtaining a Gaming License. They have been recognized as a 501(c)(3)
organization by the State.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to approve
the gaming license request from The Foundation for Muskegon Community
College, Inc.
                                    2
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Wierengo, Turnquist, and
           Markowski
            Nays: None
MOTION PASSES
      C. Consideration of Bids for Clay Avenue, Fourth to Third. ENGINEERING
SUMMARY OF REQUEST: Award the reconstruction of Clay Avenue from Fourth
to Third and that section of Third Street between Western and Clay to
McCormick Sand since they were the lowest responsible bidder with a total bid
price of $132,345.
Furthermore, if approved, authorize staff to amend the 2012/2013 CIP and
increase the budgeted amount by $45,000 for said project (from $100,000 to
$145,000).
FINANCIAL IMPACT: The construction cost of $132,345 plus engineering.
BUDGET ACTION REQUIRED: Amend the 2012/13 budget by increasing the
allocated amount by $45,000 in the CIP – Major Street.
STAFF RECOMMENDATION: Award the contract to McCormick Sand and
authorize staff to amend the budgeted amount into the 12/13 CIP during the 2nd
quarter reforecast.
Motion by Commissioner Turnquist, second by Commissioner Wierengo to award
the contract for Clay Avenue, Fourth to Third to McCormick Sand.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
           Gawron
            Nays: None
MOTION PASSES
      F. Donating Obsolete Radio Equipment to Muskegon County Emergency
         Communication Services. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to donate radio equipment that is no
longer needed to MCECS, a non-profit organization.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to donate obsolete radio equipment.
Motion by Commissioner Turnquist, second by Commissioner German to
approve the donation of the obsolete radio equipment to Muskegon County
Emergency Communication Services.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
           and Hood
            Nays: None

                                      3
MOTION PASSES
      G. Permanent Traffic Control Order – Remove Current 25 MPH Speed Limit
         Sign and Install a 30 MPH Speed Limit Sign. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to remove the current 25 MPH speed limit
sign and install a 30 MPH speed limit sign on west bound Marquette at or near
Kraft Street.
FINANCIAL IMPACT: Cost of signs and man-power to install, if approved.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve request.
Motion by Commissioner Markowski, second by Vice Mayor Spataro to approve
the removal of the current 25 MPH speed limit sign and install a 30 MPH speed
limit sign.
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and
           Spataro
             Nays: None
MOTION PASSES
2013-06 PUBLIC HEARINGS:
      A. Establishment of a Commercial Rehabilitation District at 316 Morris
         Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to public Act 210 of 2005, as amended, the
Hinman Company has requested the establishment of a Commercial
Rehabilitation District. The creation of the district will allow the building owner to
apply for a Commercial Rehabilitation Certificate, which 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 are still levied on
the new investments. Land and personal property cannot be abated under this
act.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:           Establishment of the Commercial Rehabilitation
District.
The Public Hearing opened to hear and consider any comments from the
public. Andy Wenslow, 1234 Hol Hi Drive, Kalamazoo, Director of Development
with the Hinman Co., gave an explanation of the proposed project.
Motion by Commissioner Turnquist, second by Vice Mayor Spataro to close the
Public Hearing and approve the establishment of the Commercial Rehabilitation
District at 316 Morris Avenue.
ROLL VOTE: Ayes: Wierengo, Turnquist, Markowski, Gawron, Hood, Spataro,
                                          4
           and German
           Nays: None
MOTION PASSES
2013-07 NEW BUSINESS:
     A. City of Muskegon Operations Management Contract: Smith Ryerson
        Community Center, Pastor Gregory M. Kirksey Picnic Shelter and Smith
        Ryerson Park Grounds. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Muskegon Recreational Center (MRC), Inc. has
been managing the Smith Ryerson Community Center since July, 2006. The
management has been successful, with many area youth (as well as others in
the community) being served. However, those involved with the MRC would
now like to turn over the management of the facility to New Hope Baptist
Church. Mr. Ray, who has been the actual site manager of the facility, will
continue to be site manager (he is a member of New Hope Baptist Church).
FINANCIAL IMPACT: The contract specifies that the Manager will receive its
management fee through the revenue generated at the Center.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Contract and authorize the Director
of Community & Economic Development and the City Clerk signatures.
Motion by Vice Mayor Spataro, second by Commissioner Hood to approve the
contract to operate the described facilities to New Hope Baptist Church and
authorize the Director and City Clerk to provide their signatures.
ROLL VOTE: Ayes: Turnquist, Markowski Gawron, Hood, Spataro, German, and
           Wierengo
           Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:13 p.m.


                                         Respectfully submitted,




                                         Ann Marie Cummings, MMC
                                         City Clerk




                                     5
Date:       February 12, 2013
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Cummings, City Clerk
RE:         Gaming License Request from the West Michigan
            Symphony.




SUMMARY OF REQUEST: The West Michigan Symphony, 425 W.
Western Avenue, Muskegon, MI, is requesting a resolution recognizing
them as a non-profit organization operating in the City for the purpose of
obtaining a Gaming License. They have been recognized as a 501(c)(3)
organization by the State.


FINANCIAL IMPACT: None


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION: Approval
Date: February 12, 2013
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Second Quarter 2012-13 Budget Reforecast


SUMMARY OF REQUEST: At this time staff is transmitting the Second
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.

FINANCIAL IMPACT: No major changes to the budget were made for the
second quarter. Some marginal adjustments were made resulting in the following:
   x The projected year-end FY13 fund balance for the General Fund is
      $4,813,782 up slightly from $4,805,919 estimated at the first quarter
      reforecast. The FY13 operating deficit (expenditures over revenues) is
      expected to be $206,263 down from the first quarter reforecast ($214,126)
      and down from the original budget estimate ($575,738).
   x General Fund revenues are reforecast to be $221,326 (-0.9%) lower than
      originally budgeted. Most of this decrease is due to the tax appeal settlement
      with Consumers Energy that was incorporated into the 1Q reforecast.
          o Total revenues for the first six months of the fiscal year are ahead of
              last year by about $250,000.
          o Income tax revenues are also ahead of last year’s pace by about 2%.
              If this trend continues, the revenue estimate for income tax will be
              increased from $7.2 million in the 3Q reforecast. Last year the final
              income tax figure was just over $7.4 million.
   x General Fund expenditures are estimated to be $590,801 or 2.5% lower than
      originally budgeted mostly due to lower employee benefit costs.
          o Total expenditures through the first six months are $637,000 lower
              than last year at the same time.
   x Other city funds are mostly in-line with budget projections. The Water fund is
      being monitored closely to determine if a rate increase will be needed.

BUDGET ACTION REQUIRED: City commission approval of this reforecast will
formally amend the City’s 2012-13 budget.

STAFF RECOMMENDATION: Approval.
COMMITTEE RECOMMENDATION: None.
                                                                                                                               Page 1 of 38

    City of Muskegon
    2012-13 Quarterly Budget Reforecast
    Summary of Budgeted Funds


                                                          Projected                                         Projected Ending        Increase
                                                       Beginning Fund                                             Fund          (Decrease) Fund
                                                                           Projected      Projected         Balance/Working     Balance/Working
                                                       Balance/Working
                                                                           Revenues      Expenditures            Capital             Capital
                                                           Capital
    Fund Name


    General                                            $     5,020,045 $    23,299,297 $   23,505,560 $            4,813,782 $         (206,263)
1



    Major Streets                                            2,507,008       4,128,163      5,461,251              1,173,920         (1,333,088)
2



    Local Streets                                             826,851        1,822,482      2,344,610                304,723           (522,128)
3



    Criminal Forfeitures Fund                                 149,174           18,500         10,000                157,674              8,500
4



    Budget Stabilization Fund                                1,500,000        200,000                   -          1,700,000            200,000
5



    Tree Replacement Fund                                        4,999           6,550         11,500                     49             (4,950)
6



    Brownfield Authority Fund (Betten)                      (1,503,400)       157,611         150,000             (1,495,789)             7,611
7



    Brownfield Authority Fund (Former Mall)                          -          42,698         42,000                    698                698
8



    Tax Increment Finance Authority Fund                        19,639          44,630         50,000                 14,269             (5,370)
9



10 Downtown Development Authority Debt Fund                   245,956         229,554         334,412                141,098           (104,858)


11 Local Development Finance Authority III Fund (SZ)            96,745        321,781         322,966                 95,560             (1,185)


12 Arena Improvement                                            23,779          20,200         20,000                 23,979                200


13 Sidewalk Improvement                                       575,774           46,000        152,090                469,684           (106,090)


14 Public Improvement                                         559,637           57,500        145,000                472,137            (87,500)


15 State Grants                                               147,766         300,500         353,424                 94,842            (52,924)


16 Marina & Launch Ramp                                       263,362         184,800         205,633                242,529            (20,833)


17 Public Service Building                                    383,301        1,093,448      1,072,846                403,903             20,602


18 Engineering Services                                         53,417        517,300         468,736                101,981             48,564


19 Equipment                                                 2,373,196       2,415,000      3,334,076              1,454,120           (919,076)


20 General Insurance                                         2,486,975       4,275,521      4,707,429              2,055,067           (431,908)


21 Sewer                                                     3,723,675       6,737,851      7,151,624              3,309,902           (413,773)


22 Water                                                     2,350,991       6,022,581      6,634,301              1,739,271           (611,720)




     Total All Budgeted Funds                          $    21,808,890 $    51,941,967 $   56,477,458 $           17,273,399 $       (4,535,491)
                                                                                          Page 2 of 38




                         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
   2011-12                 24,126,111          23,617,448       5,020,045

                    Fiscal 2012-13 Budget Summary

FUND BALANCE AT START OF YEAR                                                $   5,020,045

MEANS OF FINANCING:
               Taxes                                           14,373,030        61.7%
               Licenses and Permits                             1,220,500        5.2%
               Federal Grants                                     155,524        0.7%
               State Grants                                        20,000        0.1%
               State Shared Revenue                             3,713,216        15.9%
               Other Charges                                    2,553,686        11.0%
               Fines and Fees                                     452,000        1.9%
               Other Revenue                                      423,341        1.8%
               Other Financing Sources                            388,000        1.7%
                                                               23,299,297        100.0%




ESTIMATED REQUIREMENTS:
               Customer Value Added Activities                 17,825,656         75.8%
               Business Value Added Activities                  4,086,531         17.4%
               Fixed Budget Items                               1,593,373         6.8%
                                                               23,505,560        100.0%

ESTIMATED FUND BALANCE AT END OF YEAR                                        $   4,813,782

             OPERATING DEFICIT (USE OF FUND BALANCE)                         $    (206,263)


* Six-month transition period to new fiscal year
                                                                                                                                                                       Page 3 of 38



                 City of Muskegon
                 Annual Budget & Quarterly Budget Reforecast - General Fund


                                                                                                                                                   Increase
                                                                   Original Budget    Actual to Date      Actual to Date       2Q Reforecast   (Decrease) From
                                                  Actual FY2012   Estimate FY2013       12/31/12            12/31/11              FY2013            Original             Comments
                 Available Fund Balance - BOY     $    4,511,382 $      4,576,273 $        5,020,045                       $        5,020,045 $        443,772 Favorable audit results

                 Taxes
101-00000-4100   PROPERTY TAX                          6,275,258        5,908,498            446,443             544,342            5,518,498 $       (390,000) BC Cobb settlement
101-00000-4101   CHARGE BACK COLLECTED                         3            1,000                  -                   3                1,000                -
101-00000-4102   IN LIEU OF TAX                           95,805           95,000                  -                   -               95,000                -
101-00000-4103   IFT/CFT TAX                              84,332           93,463                  -                   -               93,463                -
101-00000-4104   PROPERTY TAX SANITATION               1,638,466        1,555,069            116,517             142,127            1,465,069          (90,000) BC Cobb settlement
101-00000-4140   INCOME TAX                            7,412,804        7,100,000          3,539,400           3,466,201            7,200,000          100,000 Economic growth
                                                  $   15,506,668 $     14,753,030 $        4,102,361 $         4,152,674 $         14,373,030 $       (380,000)

                 Licenses and permits
101-00000-4202   BUSINESS LICENSES & PERMITS              30,642           28,000              7,113               6,387               29,500            1,500
101-00000-4203   LIQUOR LICENSES & TAX REBATE             46,039           46,000             34,102              31,300               46,000                -
101-00000-4204   CABLE TV LICENSES OR FEES               342,376          340,000             86,787              80,815              340,000                -
101-00000-4205   HOUSING LICENSES                         39,885                -             24,745              10,415               40,000           40,000
101-00000-4206   INSPECTION FEE                               30                -                (30)                 30                    -                -
101-00000-4207   CEMETERY-BURIAL PERMITS                  87,768          110,000             50,201              38,317              110,000                -
101-00000-4208   BUILDING PERMITS                        264,201          250,000            124,966             136,833              250,000                -
101-00000-4209   ELECTRICAL PERMITS                       84,907           80,000             32,207              45,758               80,000                -
101-00000-4210   PLUMBING PERMITS                         26,884           30,000             12,067              13,880               30,000                -
101-00000-4211   HEATING PERMITS                          55,169           60,000             33,726              29,872               60,000                -
101-00000-4213   RENTAL PROPERTY REGISTRATION            123,075          130,000             62,405              61,635              120,000          (10,000)
101-00000-4221   VACANT BUILDING FEE                     112,058          100,000             39,585              37,088              100,000                -
101-00000-4224   TEMPORARY LIQUOR LICENSE                 10,000           15,000              2,250               2,075               15,000                -
                                                  $    1,223,033 $      1,189,000 $          510,124 $           494,405 $          1,220,500 $         31,500

                 Federal grants
101-00000-4300   FEDERAL GRANTS                         152,300           155,524             81,088             102,544              155,524                -
                                                  $     152,300 $         155,524 $           81,088 $           102,544 $            155,524 $              -

                 State grants
101-00000-4400   STATE GRANTS                            14,295            20,000               7,025               9,477              20,000                -
                                                  $      14,295 $          20,000 $             7,025 $             9,477 $            20,000 $              -

                 State shared revenue
101-00000-4502   STATE SALES TAX CONSTITUTIONAL        2,612,928        2,627,500            920,155             897,707            2,679,373           51,873 Revised state estimate
101-00000-4503   STATE EVIP PAYMENTS                     964,920          964,922            344,615             160,818            1,033,843           68,921
                                                  $    3,577,848 $      3,592,422 $        1,264,770 $         1,058,525 $          3,713,216 $        120,794
                                                                                                                                                                     Page 4 of 38



                 City of Muskegon
                 Annual Budget & Quarterly Budget Reforecast - General Fund


                                                                                                                                                  Increase
                                                                     Original Budget    Actual to Date     Actual to Date     2Q Reforecast   (Decrease) From
                                                    Actual FY2012   Estimate FY2013       12/31/12           12/31/11            FY2013            Original            Comments

                 Other charges for sales and services
101-00000-4603   TAX COLLECTION FEE                       289,361           272,700             98,675             41,126            254,742          (17,958) BC cobb settlement
101-00000-4604   GARBAGE COLLECTION                        48,851                 -             21,123             22,216             48,000           48,000
101-00000-4606   ADMINISTRATION FEES                      225,000           250,000            125,000            112,500            250,000                -
101-00000-4607   REIMBURSEMENT ELECTIONS                   13,640                 -                228                414                250              250
101-00000-4608   INDIRECT COST ALLOCATION               1,144,020         1,171,531            585,768            572,010          1,171,531                -
101-00000-4609   PROCUREMENT CARD REBATE                   37,689            45,000                  -                  -             45,000                -
101-00000-4611   SPECIAL EVENTS REIMBURSEMENT              95,788            50,000             55,396            105,760             75,000           25,000
101-00000-4612   CEMETERY SALE OF LOTS                     24,592            25,000             17,513             13,121             25,000                -
101-00000-4614   REIMBURSEMENT LOT CLEAN UP                43,028            30,000             19,617             14,264             30,000                -
101-00000-4615   POLICE DEPARTMENT INCOME                  42,421            40,000             25,687             14,949             40,000                -
101-00000-4617   FIRE DEPARTMENT INCOME                       703             2,000                398                593              1,000           (1,000)
101-00000-4619   MISC. SALES AND SERVICES                   2,801                 -              2,439                100              3,000            3,000
101-00000-4620   FIRE PROTECTION-STATE PROP               137,127            84,970             43,777             60,163             84,970                -
101-00000-4621   ZONING & ENCROACHMENT FEES                11,855            11,000              5,690              7,050             11,000                -
101-00000-4622   MISC. CLERK FEES                           1,365             1,500              1,669                598              2,000              500
101-00000-4624   TAX ABATEMENT APPLICATION FEES             3,439             5,000              2,684              2,939              5,000                -
101-00000-4625   MISC. TREAS. FEES                         44,502            50,000              3,485              3,813             50,000                -
101-00000-4631   REIMBURSEMENT SCHOOL OFFICER              15,450            19,000              6,180              4,245             19,000                -
101-00000-4633   OBSOLETE PROPERTY FEES                       200                 -                  -                200                  -                -
101-00000-4634   PASSPORTS                                  3,790             3,500              1,785              1,370              3,500                -
101-00000-4635   START UP CHARGE/REFUSE                     9,343                 -              5,775              3,830             10,000           10,000
101-00000-4636   REFUSE BAG & BULK SALES                   28,878            80,000             12,952             14,080             21,700          (58,300)
101-00000-4637   APPLIANCE STICKER                            232                 -                 25                232                300              300
101-00000-4642   LIEN LOOK UPS                             17,180            15,000              5,690              8,180             15,000                -
101-00000-4648   FALSE ALARM FEES/POLICE                   10,680            13,000                  -              6,420             13,000                -
101-00000-4649   CEMETERY-MISC. INCOME                     61,645            20,000             10,027             52,272             20,000                -
101-00000-4650   SENIOR CITIZENS TRANSPORTATION            11,123                 -              8,235              5,492              8,382            8,382 Program discontinued 1/1/13
101-00000-4651   REIMBURSEMENT LOT MOWING                  58,740            50,000             29,772             32,128             50,000                -
101-00000-4656   SITE PLAN REVIEW                           3,400             3,500              2,200              2,200              3,500                -
101-00000-4657   COLUMBARIUM NICHE                             79               500                800                 78              1,000              500
101-00000-4658   IMPOUND FEES                              40,920            42,000             18,994             21,800             42,000                -
101-00000-4659   LANDLORDS ALERT                               40                40                 50                  -                 50               10
101-00000-4660   MISC RECREATION INCOME                     6,551             5,000              3,803              1,596              5,000                -
101-00000-4661   LEASE GREAT LAKES NAVAL MEMORIAL          15,000             5,000              6,250              5,000             10,000            5,000
101-00000-4663   FLEA MARKET AT FARMERS MARKET             28,664            35,000             17,459             16,892             35,000                -
101-00000-4664   FARMERS MARKET INCOME                     47,805            40,000             26,856             29,335             40,000                -
101-00000-4665   LEASE BILLBOARDS                           6,800             8,561                  -                  -              8,561                -
101-00000-4670   PICNIC SHELTER                            21,485            45,000              2,975              2,895             35,000          (10,000)
101-00000-4671   MCGRAFT PARK                              48,213            46,000              1,700              3,195             46,000                -
101-00000-4673   RENTAL - CENTRAL DISPATCH                 43,526            45,000             20,318             19,415             45,000                -
101-00000-4674   RENTAL - CITY HALL                         6,600             7,200              5,861              3,600             15,200            8,000
101-00000-4675   RENTALS - BEACH                            9,491                 -                  -              9,491             10,000           10,000
                                                    $   2,662,016 $       2,522,002 $        1,196,856 $        1,215,563 $        2,553,686 $         31,684
                                                                                                                                                                     Page 5 of 38



                 City of Muskegon
                 Annual Budget & Quarterly Budget Reforecast - General Fund


                                                                                                                                                      Increase
                                                                         Original Budget    Actual to Date     Actual to Date     2Q Reforecast   (Decrease) From
                                                        Actual FY2012   Estimate FY2013       12/31/12           12/31/11            FY2013            Original       Comments
                 Fines and fees
101-00000-4701   INCOME TAX-PENALTY & INTEREST                191,679           180,000             85,757             88,704            180,000                -
101-00000-4702   DELINQUENT FEES                               24,051            40,000              1,131                  -             40,000
101-00000-4703   INTEREST/LATE INVOICES                             -             2,000                  -                  -                  -           (2,000)
101-00000-4704   PENALTIES/INTEREST/FINES                       2,328                 -              1,208              1,181              2,000            2,000
101-00000-4754   TRAFFIC FINES & FEES                         105,995           125,000             43,658             46,350             90,000          (35,000)
101-00000-4755   COURT FEES                                   123,926           140,000             48,005             39,160            140,000                -
                                                        $     447,978 $         487,000 $          179,759 $          175,395 $          452,000 $        (35,000)

                 Other revenue
101-00000-4800   MISC. & SUNDRY                                13,994            26,000              7,890              4,629             26,000                -
101-00000-4802   REIMB:DEMOS AND BOARD-UPS                      9,227                 -              8,205              3,799             10,000           10,000
101-00000-4803   CDBG PROGRAM REIMBURSEMENTS                  415,322           337,870             34,275             81,386            327,870          (10,000)
101-00000-4805   CONTRIBUTIONS                                  2,596            11,000              2,360               (863)            11,000                -
101-00000-4806   BIKE/PROPERTY AUCTIONS-POLICE                 10,598             2,000              1,965              4,010              2,000                -
101-00000-4811   FISHERMANS LANDING REIMBURSEMENT              16,775            16,775             17,471             16,775             17,471              696
101-00000-4814   PROMOTIONAL PRODUCTS                              22                 -                  -                 22                  -                -
101-00000-4818   RECOVERY OF BAD DEBT                           1,763                 -              6,290                857              7,000            7,000
101-00000-4823   CONTRIBUTIONS - DISC GOLF COURSE IMP           1,280                 -              1,920                  -              2,000            2,000
101-00000-4825   CONTRIBUTIONS - VETERAN'S PARK MAINT          18,502            18,500                  -              1,234             18,500                -
101-00000-4841   GRANT: COMMUNITY FOUNDATION                   10,000             1,500                  -                  -              1,500                -
                                                        $     500,079 $         413,645 $           80,376 $          111,849 $          423,341 $          9,696

                 Interest & Operating Transfers
101-00000-4902   OP. TRANS FROM SPECIAL REVENUE                13,828            52,000             15,034                  -             52,000                -
101-00000-4903   OP. TRANS FROM DEBT SERVICE                   50,000            50,000             25,000             25,000             50,000                -
101-00000-4904   OP. TRANS FROM CAPITAL PROJECTS                1,125                 -                  -                  -                  -                -
101-00000-4906   OP. TRANS FROM INTERNAL SERVICE FUND               -           200,000            200,000                  -            200,000                -
101-00000-4908   OP. TRANS FROM NONEXPENDABLE                   2,226            10,000              2,950                549             10,000                -
101-00000-4970   INTEREST INCOME                                9,378            75,000             25,070             50,646             75,000                -
101-00000-4971   GAIN ON INVESTMENT                           (34,662)                -            (49,646)            (4,310)                 -                -
101-00000-4980   SALE OF FIXED ASSETS                               -             1,000                  -                  -              1,000                -
                                                        $      41,895 $         388,000 $          218,408 $           71,885 $          388,000 $              -

                 Total general fund revenues and
                 other sources                          $   24,126,113 $     23,520,623 $        7,640,766 $        7,392,317 $       23,299,297 $       (221,326)
                                                                                                                                                                                                  Page 6 of 38

       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                                         Increase
                                                                     Original Budget           Actual to Date           Actual to Date           2Q Reforecast       (Decrease) From
                                                    Actual FY2012   Estimate FY2013              12/31/12                 12/31/11                  FY2012                Original                  Comments
       I. Customer Value Added Activities

40301 Police Department
5100      SALARIES & BENEFITS                           7,570,540          8,501,146                3,845,388                3,708,892                8,019,785             (481,361) Lower OPEB/Pension costs
5200      SUPPLIES                                         76,955             90,000                   31,851                   39,027                   85,000               (5,000)
5300      CONTRACTUAL SERVICES                            875,146            825,000                  483,873                  457,686                  823,000               (2,000)
5400      OTHER EXPENSES                                   21,781             17,000                    8,241                   12,875                   15,000               (2,000)
5700      CAPITAL OUTLAYS                                   7,132             17,000                    4,410                    2,428                   18,000                1,000
                                                    $   8,551,554   $      9,450,146       $        4,373,763       $        4,220,908       $        8,960,785      $      (489,361)
                                                    $   8,551,554   $      9,450,146       $        4,373,763       $        4,220,908       $        8,960,785      $      (489,361)

50336 Fire Department
5100      SALARIES & BENEFITS                           3,259,426          2,938,375                1,377,836                1,741,626                2,888,651              (49,724) Lower OPEB/Pension costs
5200      SUPPLIES                                         98,384            110,000                   36,763                   32,050                   85,000              (25,000)
5300      CONTRACTUAL SERVICES                            201,406            335,000                  176,311                   39,763                  354,400               19,400
5400      OTHER EXPENSES                                    2,182              4,000                    1,701                        -                    5,600                1,600
5700      CAPITAL OUTLAYS                                  57,270             25,000                   24,792                   23,631                   39,000               14,000
                                                    $   3,618,668   $      3,412,375       $        1,617,404       $        1,837,069       $        3,372,651      $       (39,724)

50338 New Central Fire Station
5100      SALARIES & BENEFITS                                  -                       -                    -                        -                        -                    -
5200      SUPPLIES                                             -                       -                    -                        -                        -                    -
5300      CONTRACTUAL SERVICES                            56,009                       -               21,257                   23,395                   60,000               60,000   Budget separated out
5400      OTHER EXPENSES                                       -                       -                    -                        -                        -                    -
5700      CAPITAL OUTLAYS                                      -                       -                    -                        -                        -                    -
                                                    $     56,009    $                  -   $           21,257       $           23,395       $           60,000      $        60,000

50387 Fire Safety Inspections
5100      SALARIES & BENEFITS                             463,384            483,261                  164,533                  221,248                  165,000             (318,261) Service is privatized 11/1/12
5200      SUPPLIES                                          5,951             10,000                    1,636                    3,144                    2,000               (8,000)
5300      CONTRACTUAL SERVICES                            128,447             90,040                   62,967                   19,250                  290,000              199,960
5400      OTHER EXPENSES                                    3,973             10,000                      950                    3,197                    1,000               (9,000)
5700      CAPITAL OUTLAYS                                   1,708              4,000                     (742)                   1,708                    1,000               (3,000)
                                                    $     603,463   $        597,301       $          229,342 $                248,548       $          459,000      $      (138,301)
                                                    $   4,278,140   $      4,009,676       $        1,868,003 $              2,109,012       $        3,891,651      $      (118,025)



60523 General Sanitation
5100      SALARIES & BENEFITS                              30,917             17,048                   10,372                   15,188                   16,605                 (443) Lower OPEB/Pension costs
5200      SUPPLIES                                             16                  -                        -                        -                        -                    -
5300      CONTRACTUAL SERVICES                          1,530,445          1,560,000                  476,386                  665,729                1,537,000              (23,000) Refund for carts
5400      OTHER EXPENSES                                        -                  -                                                                          -                    -
5700      CAPITAL OUTLAYS                                       -                  -                        -                        -                        -                    -
5900      OTHER FINANCING USES                            200,000            200,000                  100,000                  100,000                  200,000                    -
                                                    $   1,761,378   $      1,777,048       $          586,758       $          780,917       $        1,753,605      $       (23,443)

60550 Stormwater Management
5100      SALARIES & BENEFITS                                  -                   -                            -                                             -                    -
5200      SUPPLIES                                           198                   -                            -                        -                    -                    -
5300      CONTRACTUAL SERVICES                            13,072              17,786                            -                        -               17,786                    -
5400      OTHER EXPENSES                                       -                   -                                                                          -                    -
5700      CAPITAL OUTLAYS                                      -                   -                            -                                             -                    -
                                                    $     13,270    $         17,786       $                    -   $                    -   $           17,786      $             -

60448 Streetlighting
5100      SALARIES & BENEFITS                                   -                      -                        -                                                -                 -
                                                                                                                                                                                         Page 7 of 38

       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                                Increase
                                                                      Original Budget           Actual to Date       Actual to Date       2Q Reforecast     (Decrease) From
                                                    Actual FY2012    Estimate FY2013              12/31/12             12/31/11              FY2012              Original                   Comments
5200      SUPPLIES                                               -                  -                        -                                         -                     -
5300      CONTRACTUAL SERVICES                             560,199            740,000                  221,798              325,043              650,000               (90,000) Revised Consumer's Energy contract
5400      OTHER EXPENSES                                         -                  -                        -                                         -                     -
5700      CAPITAL OUTLAYS                                        -              5,000                        -                    -                5,000                     -
                                                    $      560,199   $        745,000       $          221,798   $          325,043   $          655,000   $           (90,000)

60707 Senior Citizen Transit
5100      SALARIES & BENEFITS                              65,909                       -               29,033               32,256               32,256             32,256    Program ceased 1/1/13
5200      SUPPLIES                                              -                       -                    -                                         -                  -
5300      CONTRACTUAL SERVICES                             10,400                       -                5,200                5,200                5,200              5,200
5400      OTHER EXPENSES                                        -                       -                    -                                         -                  -
5700      CAPITAL OUTLAYS                                       -                       -                    -                                         -                  -
                                                    $      76,309    $                  -   $           34,233   $           37,456   $           37,456   $         37,456

60446 Community Event Support
5100      SALARIES & BENEFITS                              14,857              10,000                    6,570                8,270               10,000                  -
5200      SUPPLIES                                             58                 600                      469                   58                  600                  -
5300      CONTRACTUAL SERVICES                              5,297              10,000                    2,238                3,650               10,000                  -
5400      OTHER EXPENSES                                        -                   -                        -                    -                    -                  -
5700      CAPITAL OUTLAYS                                       -                   -                        -                    -                    -                  -
                                                    $      20,212    $         20,600       $            9,277   $           11,978   $           20,600   $              -

70751 Parks Maintenance
5100      SALARIES & BENEFITS                             353,705             397,104                  171,630              176,970              387,950             (9,154) Lower OPEB/Pension costs
5200      SUPPLIES                                         65,534              86,850                   24,841               34,607               86,850                  -
5300      CONTRACTUAL SERVICES                            620,372             649,807                  317,594              333,043              649,807                  -
5400      OTHER EXPENSES                                      102                   -                        -                   21                    -                  -
5700      CAPITAL OUTLAYS                                  10,673              11,000                        -                   50               11,000                  -
                                                    $   1,050,386    $      1,144,761       $          514,065   $          544,690   $        1,135,607   $         (9,154)

70757 Mc Graft Park Maintenance
5100      SALARIES & BENEFITS                               6,934               7,500                      871                3,912                7,500                   -
5200      SUPPLIES                                          3,479               1,400                      626                1,773                1,400                   -
5300      CONTRACTUAL SERVICES                             29,358              35,700                    8,076                9,001               35,700                   -
5400      OTHER EXPENSES                                      106                   -                        -                    -                    -                   -
5700      CAPITAL OUTLAYS                                     106                   -                        -                    -                    -                   -
                                                    $      39,982    $         44,600       $            9,572   $           14,686   $           44,600   $               -

70276 Cemeteries Maintenance
5100      SALARIES & BENEFITS                             106,333              82,086                   56,601               49,536               82,086                  -
5200      SUPPLIES                                          6,975               6,750                    2,173                2,825                6,750                  -
5300      CONTRACTUAL SERVICES                            247,644             241,976                  162,772              150,456              241,976                  -
5400      OTHER EXPENSES                                        -                   -                        -                                         -                  -
5700      CAPITAL OUTLAYS                                   7,594               8,500                      135                   42                8,500                  -
                                                    $     368,546    $        339,312       $          221,681   $          202,859   $          339,312   $              -

70585 Parking Operations
5100      SALARIES & BENEFITS                                 830                   -                       40                  173                  100                100
5200      SUPPLIES                                              -                   -                        -                                         -                  -
5300      CONTRACTUAL SERVICES                              3,654               3,000                    1,675                1,554                2,900               (100)
5400      OTHER EXPENSES                                        -                   -                        -                    -                    -                  -
5700      CAPITAL OUTLAYS                                       -                   -                        -                    -                    -                  -
                                                    $       4,484    $          3,000       $            1,715   $            1,728   $            3,000   $              -

70357 Graffiti Removal
5100      SALARIES & BENEFITS                               4,312               5,000                    1,644                2,584                5,000                  -
                                                                                                                                                                                        Page 8 of 38

       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                               Increase
                                                                          Original Budget     Actual to Date       Actual to Date       2Q Reforecast      (Decrease) From
                                                        Actual FY2012    Estimate FY2013        12/31/12             12/31/11              FY2012               Original                  Comments
5200      SUPPLIES                                                 513                  -                  67                  398                 200                    200
5300      CONTRACTUAL SERVICES                                     265              4,861                 476                  170               4,661                   (200)
5400      OTHER EXPENSES                                             -                  -                    -                    -                   -                     -
5700      CAPITAL OUTLAYS                                            -                  -                    -                    -                   -                     -
                                                        $        5,090   $          9,861   $           2,188    $           3,152    $          9,861    $                 -

70863 Farmers' Market & Flea Market
5100      SALARIES & BENEFITS                                   20,918             23,490             15,346               12,524               23,490                    -
5200      SUPPLIES                                               2,197              2,075              1,378                  418                2,075                    -
5300      CONTRACTUAL SERVICES                                  30,953             29,428             18,076               19,581               29,428                    -
5400      OTHER EXPENSES                                            45                100                  -                   20                  100                    -
5700      CAPITAL OUTLAYS                                          294             22,000                  -                  294                2,000              (20,000) Did not receive grant
                                                        $       54,407   $         77,093   $         34,799     $         32,836     $         57,093    $         (20,000)
                                                        $    3,954,262   $      4,179,061   $      1,636,087     $      1,955,346     $      4,073,920    $        (105,141)

70775 General Recreation
5100      SALARIES & BENEFITS                                       -                   -                 99                    -                  100                   100
5200      SUPPLIES                                                230                   -                 96                  230                  200                   200
5300      CONTRACTUAL SERVICES                                108,784              96,000             45,013               51,562               95,700                  (300)
5400      OTHER EXPENSES                                           51                   -                  -                    -                    -                     -
5700      CAPITAL OUTLAYS                                           -                   -                  -                                         -                     -
                                                        $     109,065    $         96,000   $         45,208     $         51,792     $         96,000    $                -

80387 Environmental Services
5100      SALARIES & BENEFITS                                 337,789             361,504            155,633              160,824              353,436                (8,068) Lower OPEB/Pension costs
5200      SUPPLIES                                             10,247               7,300              4,960                4,158                7,300                     -
5300      CONTRACTUAL SERVICES                                191,979             185,000            108,345              127,252              235,640                50,640 Assumed board-up & demo tasks
5400      OTHER EXPENSES                                          228               1,000                 45                  145                  600                  (400)
5700      CAPITAL OUTLAYS                                       1,422               3,500              1,187                  293                3,500                     -
                                                        $     541,665    $        558,304   $        270,170     $        292,672     $        600,476    $           42,172
                                                        $     650,729    $        654,304   $        315,378     $        344,464     $        696,476    $           42,172

10875 Other - Contributions to Outside Agencies
        MUSKEGON AREA TRANSIT (MATS)                           80,164              80,164             40,082               40,082               80,164                      -
        NEIGHBORHOOD ASSOCIATION GRANTS                        17,738              21,000                  -                                    21,000                      -
        MUSKEGON AREA FIRST                                    45,566              45,660             22,783               22,783               45,660                      -
        VETERANS MEMORIAL DAY COSTS                                 -               7,000                  -                                     7,000                      -
        MAINSTREET                                                  -                   -                  -                                         -                      -
        DOWNTOWN MUSKEGON NOW                                       -              42,000             10,034                                    42,000                      -
        LAKESIDE BUSINESS DISTRICT                              2,500               2,500                  -                                     2,500                      -
        211 SERVICE                                             2,500               2,500              2,500                                     2,500                      -
        CONSOLIDATION FEASIBILITY STUDY                             -                   -                  -                                         -                      -
        MERS SUPPLEMENTAL CONTRIBUTION                              -                   -                  -                                         -                      -
        MLK DIVERSITY PROGRAM                                   1,000               1,000                  -                                     1,000                      -
        MUSKEGON AREA LABOR MANAGEMENT (MALMC)                      -               1,000                  -                                     1,000                      -
        MUSKEGON COUNTY AND HUMANE SOCIETY - FERAL CATS             -                   -                  -                                         -                      -
        OTHER                                                       -                   -                  -                                         -                      -
       Contributions To Outside Agencies                $     149,468    $        202,824   $         75,399     $         62,865     $        202,824    $                 -
                                                        $     149,468    $        202,824   $         75,399     $         62,865     $        202,824    $                 -



       Total Customer Value Added Activities            $   17,584,153   $     18,496,011   $      8,268,630     $      8,692,594     $     17,825,656    $        (670,355)
       As a Percent of Total General Fund
       Expenditures                                             74.5%               76.8%               77.5%                76.9%               75.8%                113.5%

       II. Business Value Added Activities
                                                                                                                                                                                    Page 9 of 38

       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                          Increase
                                                                     Original Budget       Actual to Date       Actual to Date       2Q Reforecast    (Decrease) From
                                                    Actual FY2012   Estimate FY2013          12/31/12             12/31/11              FY2012             Original                   Comments

10101 City Commission
5100      SALARIES & BENEFITS                             67,018              67,916               31,691               32,829               67,475              (441) Lower OPEB/Pension costs
5200      SUPPLIES                                         6,880              12,300                8,400                6,828               12,300                 -
5300      CONTRACTUAL SERVICES                             3,201               1,800                  506                2,134                1,800                 -
5400      OTHER EXPENSES                                   1,436               2,000                  294                  183                2,000                 -
5700      CAPITAL OUTLAYS                                  4,371               1,200                1,816                2,950                1,200                 -
                                                    $     82,906    $         85,216   $           42,708   $           44,924   $           84,775   $          (441)

10102 City Promotions & Public Relations
5100      SALARIES & BENEFITS                                   -                  -                    -                                         -                 -
5200      SUPPLIES                                          1,067              9,350                  239                  461                  350            (9,000)
5300      CONTRACTUAL SERVICES                              6,146                  -                2,524                3,175                9,000             9,000
5400      OTHER EXPENSES                                        -                  -                    -                                         -                 -
5700      CAPITAL OUTLAYS                                       -                  -                    -                                         -                 -
                                                    $       7,214   $          9,350   $            2,763   $            3,636   $            9,350   $             -

10172 City Manager
5100      SALARIES & BENEFITS                            261,589             270,811              120,220              120,478              263,959            (6,852) Lower OPEB/Pension costs
5200      SUPPLIES                                         1,297               1,400                  109                  185                1,400                 -
5300      CONTRACTUAL SERVICES                             7,032               7,750                3,360                2,890                7,750                 -
5400      OTHER EXPENSES                                   2,225               1,750                  240                1,004                1,750                 -
5700      CAPITAL OUTLAYS                                  1,166               1,250                    -                   45                1,250                 -
                                                    $    273,309    $        282,961   $          123,929   $          124,603   $          276,109   $        (6,852)

10145 City Attorney
5100      SALARIES & BENEFITS                                  -                   -                    -                                         -                 -
5200      SUPPLIES                                             -               2,000                  830                    -                2,000                 -
5300      CONTRACTUAL SERVICES                           354,865             330,000              151,315              165,230              330,000                 -
5400      OTHER EXPENSES                                       -                   -                    -                                         -                 -
5700      CAPITAL OUTLAYS                                      -                   -                    -                                         -                 -
                                                    $    354,865    $        332,000   $          152,145   $          165,230   $          332,000   $             -
                                                    $    718,294    $        709,527   $          321,544   $          338,394   $          702,234   $        (7,293)

20228 Affirmative Action
5100      SALARIES & BENEFITS                             80,618              81,162               38,555               39,909               80,101            (1,061) Lower OPEB/Pension costs
5200      SUPPLIES                                           264                 750                  127                   98                  750                 -
5300      CONTRACTUAL SERVICES                             1,785               2,027                  461                  898                1,627              (400)
5400      OTHER EXPENSES                                     319               1,000                   89                   89                  800              (200)
5700      CAPITAL OUTLAYS                                      -                 500                    -                    -                1,100               600
                                                    $     82,987    $         85,439   $           39,232   $           40,994   $           84,378   $        (1,061)

20215 City Clerk & Elections
5100      SALARIES & BENEFITS                            243,389             246,045              145,760              114,912              246,045                 -
5200      SUPPLIES                                        25,026              33,208               23,860                7,338               33,208                 -
5300      CONTRACTUAL SERVICES                            11,797              29,516               17,200                4,948               29,516                 -
5400      OTHER EXPENSES                                   2,367               2,500                1,177                  688                2,500                 -
5700      CAPITAL OUTLAYS                                  6,380               1,000                4,871                    -                5,000             4,000
                                                    $    288,959    $        312,269   $          192,868   $          127,886   $          316,269   $         4,000

20220 Civil Service
5100      SALARIES & BENEFITS                              4,245                   -                3,429                4,245                3,429             3,429    Final leave payout
5200      SUPPLIES                                         3,810               3,100                  241                1,015                3,100                 -
5300      CONTRACTUAL SERVICES                            88,071              86,170               19,477               23,425               86,170                 -
5400      OTHER EXPENSES                                   2,418               2,000                2,563                2,418                2,000                 -
5700      CAPITAL OUTLAYS                                      -                   -                    -                                         -                 -
                                                                                                                                                                                Page 10 of 38

       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                           Increase
                                                                       Original Budget       Actual to Date      Actual to Date      2Q Reforecast     (Decrease) From
                                                    Actual FY2012     Estimate FY2013          12/31/12            12/31/11             FY2012              Original                Comments
                                                    $       98,543   $            91,270   $          25,710   $          31,103   $         94,699   $            3,429
                                                    $      470,489   $           488,978   $         257,810   $         199,982   $        495,346   $            6,368

30202 Finance Administration
5100      SALARIES & BENEFITS                             278,978              186,399              88,016             177,539             181,663               (4,736) Lower OPEB/Pension costs
5200      SUPPLIES                                          2,933                3,370               1,146               1,609               3,370                    -
5300      CONTRACTUAL SERVICES                            133,853              168,484              93,003              54,753             168,484                    -
5400      OTHER EXPENSES                                    1,505                    -                 529               1,267                   -                    -
5700      CAPITAL OUTLAYS                                   3,834                4,000                   -               2,769               4,000                    -
                                                    $     421,103    $         362,253     $       182,694     $       237,936     $       357,517    $          (4,736)

30209 Assessing Services
5100      SALARIES & BENEFITS                               3,126                7,610                  849                929               7,610                     -
5200      SUPPLIES                                              -                    -                  410                  -                   -                     -
5300      CONTRACTUAL SERVICES                            422,034              360,000               88,592            226,773             360,000                     -
5400      OTHER EXPENSES                                        -                    -                    -                                      -                     -
5700      CAPITAL OUTLAYS                                       -                    -                    -                                      -                     -
                                                    $     425,160    $         367,610     $         89,851    $       227,702     $       367,610    $                -

30805 Arena Administration
5100      SALARIES & BENEFITS                                   -                    -                   -                                       -                     -
5200      SUPPLIES                                              -                    -                   -                                       -                     -
5300      CONTRACTUAL SERVICES                            238,492              235,000             235,000             195,833             235,000                     -
5400      OTHER EXPENSES                                        -                    -                   -                                       -                     -
5700      CAPITAL OUTLAYS                                   1,599                    -                   -                   -                   -                     -
                                                    $     240,091    $         235,000     $       235,000     $       195,833     $       235,000    $                -

30205 Income Tax Administration
5100      SALARIES & BENEFITS                             349,617              366,878             144,890             163,895             359,385               (7,493) Lower OPEB/Pension costs
5200      SUPPLIES                                         11,035               12,160               3,317               3,454              12,160                    -
5300      CONTRACTUAL SERVICES                             66,871               77,350              16,988              32,162              77,350                    -
5400      OTHER EXPENSES                                      792                1,000                 225                 514               1,000                    -
5700      CAPITAL OUTLAYS                                   4,081                2,500                   -                  57               2,500                    -
                                                    $     432,397    $         459,888     $       165,419     $       200,082     $       452,395    $          (7,493)

30253 City Treasurer
5100      SALARIES & BENEFITS                             318,736              324,507             151,333             156,089             317,118               (7,389)
5200      SUPPLIES                                         65,720               66,000              32,021              30,038              66,000                    -
5300      CONTRACTUAL SERVICES                            126,643              109,000              52,869              53,612             109,000                    -
5400      OTHER EXPENSES                                      343                  800                 209                  48                 800                    -
5700      CAPITAL OUTLAYS                                   5,710                1,000                  51                 296               1,000                    -
                                                    $     517,152    $         501,307     $       236,483     $       240,083     $       493,918    $          (7,389)

30248 Information Systems Administration
5100      SALARIES & BENEFITS                             301,869               313,807            140,827             138,213              306,152              (7,655) Lower OPEB/Pension costs
5200      SUPPLIES                                            481                 1,977                117                 174                1,977                   -
5300      CONTRACTUAL SERVICES                             31,224                18,268              8,173               4,218               18,268                   -
5400      OTHER EXPENSES                                    4,114                12,000                403                   -               12,000                   -
5700      CAPITAL OUTLAYS                                  33,513                48,406             19,364              13,234               48,406                   -
                                                    $     371,201    $          394,458    $       168,885     $       155,839     $        386,803   $          (7,655)
                                                    $   2,407,105    $        2,320,516    $     1,078,332     $     1,257,475     $      2,293,243   $         (27,273)

60265 City Hall Maintenance
5100      SALARIES & BENEFITS                              39,062               37,708               16,997              17,284             36,856                 (852) Lower OPEB/Pension costs
5200      SUPPLIES                                         10,126               13,775                4,062               4,606             13,775                    -
5300      CONTRACTUAL SERVICES                            178,543              230,000               69,967              77,391            230,000                    -
                                                                                                                                                                                            Page 11 of 38

         Annual Budget & Quarterly Budget Reforecast - General Fund
         General Fund Expenditure Summary By Function

                                                                                                                                                                  Increase
                                                                         Original Budget       Actual to Date         Actual to Date        2Q Reforecast     (Decrease) From
                                                       Actual FY2012    Estimate FY2013          12/31/12               12/31/11               FY2012              Original                     Comments
5400        OTHER EXPENSES                                        191                  -                    -                     191                    -                     -
5700        CAPITAL OUTLAYS                                     7,164              7,500                3,904                   3,915                7,500                     -
                                                       $      235,086   $        288,983   $           94,930       $         103,386   $          288,131   $              (852)
                                                       $      235,086   $        288,983   $           94,930       $         103,386   $          288,131   $              (852)

80400 Planning, Zoning and Economic Development
5100        SALARIES & BENEFITS                              267,122             278,373              130,395               128,692                271,977               (6,396) Lower OPEB/Pension costs
5200        SUPPLIES                                           2,759               4,600                1,316                 1,323                  4,600                    -
5300        CONTRACTUAL SERVICES                              19,914              25,000                7,353                 7,847                 25,000                    -
5400        OTHER EXPENSES                                     1,272               4,000                1,026                   662                  4,000                    -
5700        CAPITAL OUTLAYS                                    1,848               2,000                2,402                     -                  2,000                    -
                                                       $     292,915    $        313,973   $          142,491       $       138,523     $          307,577   $           (6,396)
                                                       $     292,915    $        313,973   $          142,491       $       138,523     $          307,577   $           (6,396)

         Total Business Value Added Activities         $   4,123,889    $      4,121,977   $        1,895,108       $     2,037,761     $        4,086,531   $          (35,446)
         As a Percent of Total General Fund
         Expenditures                                          17.5%               17.1%                17.8%                  18.0%                 17.4%                 6.0%

         III. Fixed Budget Items

30999 Transfers To Other Funds
           MAJOR STREET FUND                                       -                   -                    -                                            -                     -
           LOCAL STREET FUND                                 280,000             280,000              140,000               140,000                280,000                     -
           ENGINEERING                                        75,000                   -                    -                75,000                      -                     -
           SIDEWALK                                                -                   -                    -                     -                      -                     -
           PUBLIC IMPROVEMENT FIRE EQUIPMENT RESERVE               -                   -                    -                     -                      -                     -
           ARENA MAINTENANCE                                       -                   -                    -                     -                      -                     -
           STATE GRANTS                                            -                   -                    -                     -                      -                     -
           LDFA DEBT SERVICE FUND (SMARTZONE)                100,000             160,000               80,000                50,000                160,000                     -
           GENERAL INSURANCE                                  28,046              28,046               14,023                14,023                 28,046                     -
                                                       $     483,046    $        468,046   $          234,023       $       279,023     $          468,046   $                 -

30851    General Insurance                                   257,320             224,982                        -                   -              224,982   $                 -
30906    Debt Retirement                                     281,954             278,345              174,950               176,503                278,345                     -
10891    Contingency and Bad Debt Expense                    513,590             250,000                4,077                                      400,000             150,000      Contingency for tax appeals
90000    Major Capital Improvements
 91112   CHARGEPOINT CAR CHARGING                              5,037                   -                    -                  4,537                     -                    -
         VETERAN'S PARK UPGRADES                                   -              12,000                    -                      -                12,000                    -
 91116   ADA PROJECT 2011-2012                                 1,432              25,000                    -                      -                25,000                    -
 91118   MCGRAFT PARK ROOF & RESURFACE TENNIS COU              2,087                   -                    -                  2,087                     -                    -
 91119   CITY HALL TUCK POINTING & ROOF OVER PD               15,489                   -                    -                    155                     -                    -
 91120   VOIP PHONE SYSTEM                                    50,363              20,000               19,400                      -                20,000                    -
 91125   BS&A FINANCIAL MANAGEMENT SOFTWARE                  154,646              50,000                 (195)                     -                     -              (50,000)
 91129   JEFFERSON & APPLE CITY HALL PARKING LOT               6,196              70,000               36,573                      -                35,000              (35,000)
         CITY HALL HVAC CLEANING                                   -                   -                    -                      -                10,000               10,000
         CITY HALL WINDOWS                                         -              80,000                    -                      -                80,000                    -
 91130   CITY HALL TUCK POINTING/WINDOWS                       1,817                   -               38,021                      -                40,000               40,000
 99012   GIS TRAINING                                          4,169                   -                    -                  3,937                     -                    -
 99148   JAG GRANT                                           106,135                   -                  501                 87,563                     -                    -
 99152   DOJ JAG GRANT MUSKEGON HEIGHTS                       26,126                   -                    -                 23,945                     -                    -
         Total Fixed-Budget Items                      $   1,909,406    $      1,478,373   $          507,350       $       577,750     $        1,593,373   $         115,000
         As a Percent of Total General Fund
         Expenditures                                           8.1%                6.1%                  4.8%                  5.1%                  6.8%               -19.5%
                                                                                                                                                                           Page 12 of 38

       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                            Increase
                                                                       Original Budget       Actual to Date       Actual to Date       2Q Reforecast    (Decrease) From
                                                    Actual FY2012     Estimate FY2013          12/31/12             12/31/11              FY2012             Original        Comments

        Total General Fund                          $    23,617,448   $     24,096,361   $       10,671,087   $       11,308,105   $       23,505,560   $      (590,801)




       Recap: Total General Fund By Expenditure Object
5100     Salaries & Benefits                        $    14,451,224   $     15,007,730   $        6,848,556   $        7,229,017   $       14,133,729   $      (874,001)
5200     Operating Supplies                                 402,136            478,965              181,054              175,817              432,365           (46,600)
5300     Contractual Services                             6,710,688          6,931,769            2,954,245            3,150,491            7,159,969           228,200
5400     Other Expenses                                     559,041            309,150               21,770               23,319              449,150           140,000
5700     Capital Outlays                                    529,359            422,356              156,489              173,935              383,956           (38,400)
5900     All Other Financing Uses                           965,000            946,391              508,973              555,526              946,391                 -
        Total General Fund                          $    23,617,448   $     24,096,361   $       10,671,087   $       11,308,105   $       23,505,560   $      (590,801)
                                                                                                                                                                                       Page 13 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                Increase
                                                                Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                              Actual 2012                                                                                   (Decrease) From               Comments
                                                                    FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                 Original

202     Major Streets and State Trunklines Fund
                                          $       566,001
        Available Fund Balance - BOY                            $   2,438,845     $   2,507,008                             $   2,507,008   $       68,163


        Means of Financing
         Special assessments              $       167,342       $    125,000      $                -   $                -   $    125,000    $             -
         Federal & state grants                 1,377,820           1,095,000             2,438                         -       1,295,000          200,000
         State shared revenue                   2,537,508           2,663,163          813,296              909,093             2,663,163                 -
         Interest income                           34,829              25,000             1,438                1,526              25,000                  -
         Operating transfers in                                               -                    -                    -               -                 -
         Other                                  2,099,396              20,000             3,495            2,003,249              20,000                  -
                                          $     6,216,895       $   3,928,163     $    820,667         $   2,913,868        $   4,128,163   $      200,000


60900   Operating Expenditures
5100      Salaries & Benefits             $       518,030                         $    231,059         $    282,922
                                                                $    770,000                                                $    757,000    $      (13,000) Lower OPEB/Pension costs
5200      Operating Supplies                      241,072                               28,273               48,172
                                                                     240,600                                                     240,600                  -
5300      Contractual Services                    821,383                              411,791              383,058
                                                                    1,080,658                                                   1,080,658                 -
5400      Other Expenses                           11,295                                   150                  540
                                                                        1,000                                                      1,000                  -
5700      Capital Outlays                                                                          -                    -
                                                                              -                                                         -                 -
5900      Other Financing Uses                     25,330                              205,462                          -
                                                                     456,993                                                     456,993                  -


                                          $     1,617,110       $   2,549,251     $    876,735         $    714,691         $   2,536,251   $      (13,000)



90000   Project Expenditures
5200      Operating Supplies              $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                  2,658,778                              228,662             1,106,311
                                                                    3,166,000                                                   2,925,000         (241,000)

5700      Capital Outlays                                   -                 -                    -                    -               -                 -

                                          $     2,658,778       $   3,166,000     $    228,662         $   1,106,311        $   2,925,000   $     (241,000)
                                          $     4,275,888       $   5,715,251     $   1,105,397        $   1,821,003        $   5,461,251   $     (254,000)


                                          $     2,507,008
        Available Fund Balance - EOY                            $    651,757      $   2,222,278                             $   1,173,920   $      522,163
                                                                                                                                                                                        Page 14 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                Increase
                                                                Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                              Actual 2012                                                                                   (Decrease) From                Comments
                                                                    FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                 Original



203     Local Streets Fund
                                          $       663,340
        Available Fund Balance - BOY                            $    657,138      $    826,851                              $    826,851    $      169,713


        Means of Financing
         Special assessments              $       109,166       $      75,000     $                -   $                -   $     75,000    $             -
         Federal & state grants                             -          32,000                      -                    -         32,000                  -
         Metro act fees                           140,850            140,000                       -                    -        140,000                  -
         State shared revenue                     639,476            635,482           215,726              214,818              635,482                  -
         Interest income                           27,090              20,000                      -                    -         20,000                  -
         Operating transfers in                   480,000            905,000           442,323              241,850              905,000                  -

         Other                                      2,410              15,000             4,278                  121              15,000                  -

                                          $     1,398,992       $   1,822,482     $    662,327         $    456,789         $   1,822,482   $             -


60900   Operating Expenditures
5100      Salaries & Benefits             $       457,536                         $    184,153         $    198,388
                                                                $    473,137                                                $    463,492    $        (9,645) Lower OPEB/Pension costs
5200      Operating Supplies                       64,067                               29,727               27,677
                                                                     118,000                                                     118,000                  -
5300      Contractual Services                    616,506                              251,509              274,816
                                                                     860,118                                                     860,118                  -
5400      Other Expenses                            4,046                                    13                1,510
                                                                        2,000                                                      2,000                  -
5700      Capital Outlays                                   -                 -                    -                                    -                 -
5900      Other Financing Uses                              -                 -                    -                                    -                 -
                                          $     1,142,155       $   1,453,255     $    465,402         $    502,391         $   1,443,610   $        (9,645)


90000   Project Expenditures
5200      Operating Supplies              $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                     93,326                              571,611               81,180
                                                                     805,000                                                     901,000            96,000

                                          $        93,326       $    805,000      $    571,611         $     81,180         $    901,000    $       96,000

                                          $     1,235,481       $   2,258,255     $   1,037,013        $    583,572         $   2,344,610   $       86,355


                                          $       826,851
        Available Fund Balance - EOY                            $    221,365      $    452,165                              $    304,723    $       83,358
                                                                                                                                                                                  Page 15 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From   Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original



257     Budget Stabilization Fund
                                                   $     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                     -        200,000           200,000                          -        200,000                  -
         Other                                                       -                 -                    -                    -               -                 -

                                                   $                 -   $    200,000      $    200,000         $                -   $    200,000    $             -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                         -                 -                    -                    -               -                 -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                            -                 -                    -                    -               -                 -
5900      Other Financing Uses                                       -                 -                    -                    -               -                 -

                                                   $                 -   $             -   $                -   $                -   $           -   $             -



90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -


                                                   $     1,500,000
        Available Fund Balance - EOY                                     $   1,700,000     $   1,700,000                             $   1,700,000   $             -
                                                                                                                                                                                                       Page 16 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From                 Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original



264     Criminal Forfeitures Fund
                                                   $       140,828
        Available Fund Balance - BOY                                     $    148,828      $    149,174                              $    149,174    $          346


        Means of Financing
         Special assessments                       $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                                      -                 -                    -                    -               -                 -
         State shared revenue                                        -                 -                    -                    -               -                 -
         Charges for services                                        -                 -                    -                    -               -                 -
         Interest income                                     1,136                 500               443                  409                 500                  -
         Operating transfers in - General Fund                       -                 -                    -                    -               -                 -
         Operating transfers in - TIFA Fund                          -                 -                    -                    -               -                 -
         Operating transfers in - Insurance Fund                     -                 -                    -                    -               -                 -
         Other                                              11,422              12,000           14,684               10,824               18,000             6,000
                                                   $        12,558       $      12,500     $     15,127         $     11,233         $     18,500    $        6,000


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $             -   $                -                        $           -   $             -
5200      Operating Supplies                                         -                 -                    -                                    -                 -
5300      Contractual Services                               3,933                                 2,286                3,000
                                                                                 5,000                                                     10,000             5,000    Outfit new street crimes unit
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                      279                     -                    -                    -               -                 -
5900      Other Financing Uses                                       -                 -                    -                    -               -                 -
                                                   $         4,212       $       5,000     $       2,286        $       3,000        $     10,000    $        5,000


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $         4,212       $       5,000     $       2,286        $       3,000        $     10,000    $        5,000


                                                   $       149,174
        Available Fund Balance - EOY                                     $    156,328      $    162,015                              $    157,674    $        1,346
                                                                                                                                                                                               Page 17 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From                Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original



285     Tree Replacement Fund
                                                   $         5,119
        Available Fund Balance - BOY                                     $       4,669     $       4,999                             $      4,999    $          330


        Means of Financing
         Special assessments                       $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                              2,000                     -                    -                    -          5,000             5,000     New grant received
         State shared revenue                                        -                 -                    -                    -               -                 -
         Charges for services                                        -                 -                    -                    -               -                 -
         Interest income                                         37                  50               10                   13                   50                 -
         Operating transfers in - General Fund                       -                 -                    -                    -               -                 -
         Operating transfers in - TIFA Fund                          -                 -                    -                    -               -                 -
         Operating transfers in - Insurance Fund                     -                 -                    -                    -               -                 -
         Other                                                 200                     -           1,296                         -          1,500             1,500
                                                   $         2,237       $           50    $       1,306        $          13        $      6,550    $        6,500


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -                     $       3,659        $                -
                                                                         $             -                                             $      3,700    $        3,700     Work done in-house
5200      Operating Supplies                                 2,357                                 5,314                2,111
                                                                                 2,500                                                      5,500             3,000
5300      Contractual Services                                       -                             2,021                         -
                                                                                       -                                                    2,300             2,300
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                            -                 -                    -                    -               -                 -
5900      Other Financing Uses                                       -                 -                    -                    -               -                 -
                                                   $         2,357       $       2,500     $     10,994         $       2,111        $     11,500    $        9,000


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $         2,357       $       2,500     $     10,994         $       2,111        $     11,500    $        9,000


                                                   $         4,999
        Available Fund Balance - EOY                                     $       2,219     $      (4,689)                            $          49   $        (2,170)
                                                                                                                                                                                  Page 18 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From   Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original



295     Brownfield Redevelopment Authority (Betten Project)
                                                   $        65,349
        Available Fund Balance - BOY                                     $       4,450     $ (1,503,400)                             $ (1,503,400) $     (1,507,850)


        Means of Financing
         Property taxes                            $       142,429       $    157,111      $                -   $                -   $    157,111    $             -
         Federal & state grants                                      -                 -                    -                    -               -                 -
         State shared revenue                                        -                 -                    -                    -               -                 -
         Charges for services                                        -                 -                    -                    -               -                 -
         Interest income                                       671                 250               369                  105                 500               250
         Operating transfers in - General Fund                       -                 -                    -                    -               -                 -
         Operating transfers in - TIFA Fund                          -                 -                    -                    -               -                 -
         Operating transfers in - Insurance Fund                     -                 -                    -                    -               -                 -
         Other                                                       -                 -                    -                    -               -                 -
                                                   $       143,100       $    157,361      $         369        $         105        $    157,611    $          250


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                         -                 -                    -                    -               -                 -
5300      Contractual Services                           1,698,021            150,000              5,000              29,605               96,000           (54,000)
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                            -                 -                    -                    -               -                 -
5900      Other Financing Uses                              13,828              10,000           26,975                          -         54,000            44,000
                                                   $     1,711,849       $    160,000      $     31,975         $     29,605         $    150,000    $      (10,000)


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $     1,711,849       $    160,000      $     31,975         $     29,605         $    150,000    $      (10,000)


                                                   $ (1,503,400) $
        Available Fund Balance - EOY                                             1,811     $ (1,535,006)                             $ (1,495,789) $     (1,497,600)
                                                                                                                                                                                  Page 19 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From   Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original



296     Brownfield Redevelopment Authority (Mall Area Project)
                                                   $                 -
        Available Fund Balance - BOY                                     $             -   $                -                        $           -   $             -


        Means of Financing
         Property taxes                            $                 -   $      42,698     $     10,034         $                -   $     42,698    $             -
         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                                                       -                 -                    -                    -               -                 -
                                                   $                 -   $      42,698     $     10,034         $                -   $     42,698    $             -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                         -                 -                    -                    -               -                 -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                            -                 -                    -                    -               -                 -
5900      Other Financing Uses                                       -          42,000           10,034                          -         42,000                  -
                                                   $                 -   $      42,000     $     10,034         $                -   $     42,000    $             -


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $                 -   $      42,000     $     10,034         $                -   $     42,000    $             -


                                                   $                 -
        Available Fund Balance - EOY                                     $         698     $                -                        $        698    $             -
                                                                                                                                                                                Page 20 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                       Increase
                                                                       Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                     Actual 2012                                                                                   (Decrease) From   Comments
                                                                           FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                        Original



290     Local Development Finance Authority III Fund - Edison Landing (Smartzone)
                                                 $        21,348
        Available Fund Balance - BOY                                   $       7,221     $     96,745                              $     96,745    $       89,524


        Means of Financing
         Property taxes                          $        83,420       $      86,631     $                -   $                -   $     86,631    $             -
         Federal & state grants                                    -                 -                    -                    -               -                 -
         State shared revenue                                      -                 -                    -                    -               -                 -
         Charges for services                                      -                 -                    -                    -               -                 -
         Interest income                                   3,569                 150                79                   47                 150                  -
         Operating transfers in - General Fund           100,000            160,000            80,000               50,000              160,000                  -
         Other                                           306,196              75,000           75,000               75,000               75,000                  -

                                                 $       493,185       $    321,781      $    155,079         $    125,047         $    321,781    $             -


70805   Operating Expenditures
5100      Salaries & Benefits                    $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                       -                 -                    -                    -               -                 -
5300      Contractual Services                               250                 500                      -                    -            500                  -
5400      Other Expenses                                           -                 -                    -                    -               -                 -
5700      Capital Outlays                                          -                 -                    -                    -               -                 -
5900      Other Financing Uses                           417,538                               70,244               96,874
                                                                            322,466                                                     322,466                  -
                                                 $       417,788       $    322,966      $     70,244         $     96,874         $    322,966    $             -


90000   Project Expenditures
5200      Operating Supplies                     $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                     -                 -                    -                    -               -                 -
                                                 $                 -   $             -   $                -   $                -   $           -   $             -
                                                 $       417,788       $    322,966      $     70,244         $     96,874         $    322,966    $             -


                                                 $        96,745
        Available Fund Balance - EOY                                   $       6,036     $    181,580                              $     95,560    $       89,524
                                                                                                                                                                                   Page 21 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From    Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original



305     Tax Increment Finance Authority Fund
                                                   $        16,445
        Available Fund Balance - BOY                                     $      19,702     $     19,639                              $     19,639    $           (63)


        Means of Financing
         Property taxes                            $        53,057       $      44,430     $                -   $                -   $     44,430    $             -
         Federal & state grants                                      -                 -                    -                    -               -                 -
         State shared revenue                                        -                 -                    -                    -               -                 -
         Charges for services                                        -                 -                    -                    -               -                 -
         Interest income                                       137                 200                38                   43                 200                  -
         Operating transfers in - General Fund                       -                 -                    -                    -               -                 -
         Operating transfers in - TIFA Fund                          -                 -                    -                    -               -                 -
         Operating transfers in - Insurance Fund                     -                 -                    -                    -               -                 -
         Other                                                       -                 -                    -                    -               -                 -
                                                   $        53,194       $      44,630     $          38        $          43        $     44,630    $             -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                         -                 -                    -                    -               -                 -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                            -                 -                    -                    -               -                 -
5900      Other Financing Uses                              50,000              50,000           25,000               25,000               50,000                  -

                                                   $        50,000       $      50,000     $     25,000         $     25,000         $     50,000    $             -



90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $        50,000       $      50,000     $     25,000         $     25,000         $     50,000    $             -


                                                   $        19,639
        Available Fund Balance - EOY                                     $      14,332     $      (5,323)                            $     14,269    $           (63)
                                                                                                                                                                                              Page 22 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                         Increase
                                                                         Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                       Actual 2012                                                                                   (Decrease) From              Comments
                                                                             FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                          Original

394     Downtown Development Authority Fund
                                                   $       272,145
        Available Fund Balance - BOY                                     $    244,630      $    245,956                              $    245,956    $        1,326

        Means of Financing
         Property taxes                            $       305,797       $    288,404      $                -   $                -   $    228,404    $      (60,000) Tax settlement refunds
         Federal & state grants                                      -                 -                    -                    -               -                 -
         State proposal A reimbursement revenue                      -                 -                    -                    -               -                 -
         Charges for services                                        -                 -                    -                    -               -                 -
         Interest income                                     2,477               1,150               681                  815               1,150                  -
         Operating transfers in - General Fund                       -                 -                    -                    -               -                 -
         Operating transfers in - PIF                                -                 -                    -                    -               -                 -
         Operating transfers in - Insurance Fund                     -                 -                    -                    -               -                 -
         Other                                                       -                 -                    -                    -               -                 -
                                                   $       308,274       $    289,554      $         681        $         815        $    229,554    $      (60,000)


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                         -                 -                    -                    -               -                 -
5300      Contractual Services                                       -             250                      -                    -            250                  -
5400      Other Expenses                                             -                 -                    -                    -               -                 -
5700      Capital Outlays                                            -                 -                    -                    -               -                 -
5900      Other Financing Uses                             334,463                               30,766               33,373
                                                                              334,162                                                     334,162                  -

                                                   $       334,463       $    334,412      $     30,766         $     33,373         $    334,412    $             -



90000   Project Expenditures
5200      Operating Supplies                       $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                       -                 -                    -                    -               -                 -
                                                   $                 -   $             -   $                -   $                -   $           -   $             -
                                                   $       334,463       $    334,412      $     30,766         $     33,373         $    334,412    $             -


                                                   $       245,956
        Available Fund Balance - EOY                                     $    199,772      $    215,871                              $    141,098    $      (58,674)
                                                                                                                                                                         Page 23 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                Increase
                                                                Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                              Actual 2012                                                                                   (Decrease) From   Comments
                                                                    FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                 Original



408     Arena Improvement Fund
                                          $           779
        Available Fund Balance - BOY                            $      16,979     $     23,779                              $     23,779    $        6,800


        Means of Financing
         Special assessments              $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                             -                 -                    -                    -               -                 -
         State shared revenue                               -                 -                    -                    -               -                 -
         Charges for services                      22,885              20,000             3,050                7,290              20,000                  -
         Interest income                              115                 200                65                   64                 200                  -
         Operating transfers in                             -                 -                    -                    -               -                 -
         Other                                     23,400                     -                    -         23,400                     -                 -
                                          $        46,400       $      20,200     $       3,115        $     30,754         $     20,200    $             -


30906   Operating Expenditures
5100      Salaries & Benefits             $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                -                                                                                             -
5300      Contractual Services                              -                 -            (223)                        -               -                 -
5400      Other Expenses                                    -                 -                    -                    -               -                 -
5700      Capital Outlays                          23,400                     -                    -                    -               -                 -
5900      Other Financing Uses                              -                 -                    -                    -               -                 -
                                          $        23,400       $             -   $        (223) $                      -   $           -   $             -


90000   Project Expenditures
5200      Operating Supplies              $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                              -          20,000             4,227              23,400               20,000                  -

5400      Other Expenses                                    -                 -                    -                    -               -                 -

5900      Other Financing Uses                              -                 -                    -                    -               -                 -
                                          $                 -   $      20,000     $       4,227        $     23,400         $     20,000    $             -
                                          $        23,400       $      20,000     $       4,004        $     23,400         $     20,000    $             -


                                          $        23,779
        Available Fund Balance - EOY                            $      17,179     $     22,890                              $     23,979    $        6,800
                                                                                                                                                                         Page 24 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                Increase
                                                                Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                              Actual 2012                                                                                   (Decrease) From   Comments
                                                                    FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                 Original



403     Sidewalk Improvement Fund
                                          $       665,541
        Available Fund Balance - BOY                            $    571,836      $    575,774                              $    575,774    $        3,938


        Means of Financing
         Special assessments              $        55,668       $      40,000     $                -   $                -   $     40,000    $             -
         Federal & state grants                             -                 -                    -                    -               -                 -
         State shared revenue                               -                 -                    -                    -               -                 -
         Charges for services                               -                 -                    -                    -               -                 -
         Interest income                           11,581               6,000             1,749                1,912               6,000                  -
         Operating transfers in                             -                 -                    -                    -               -                 -
         Other                                              -                 -                    -                    -               -                 -
                                          $        67,249       $      46,000     $       1,749        $       1,912        $     46,000    $             -


30906   Operating Expenditures
5100      Salaries & Benefits             $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                -                 -                    -                    -               -                 -
5300      Contractual Services                              -                 -                    -                    -               -                 -
5400      Other Expenses                                    -                 -                    -                    -               -                 -
5700      Capital Outlays                                   -                 -                    -                    -               -                 -
5900      Other Financing Uses                    151,705                               11,040               13,353
                                                                     152,080                                                     152,080                  -

                                          $       151,705       $    152,080      $     11,040         $     13,353         $    152,080    $             -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                      5,311                     -              10                         -              10                10
5400      Other Expenses                                    -                 -                                                         -                 -
5900      Other Financing Uses                              -                 -                    -                    -               -                 -
                                          $         5,311       $             -   $          10        $                -   $          10   $            10
                                          $       157,016       $    152,080      $     11,050         $     13,353         $    152,090    $            10


                                          $       575,774
        Available Fund Balance - EOY                            $    465,756      $    566,473                              $    469,684    $        3,928
                                                                                                                                                                                        Page 25 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                Increase
                                                                Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                              Actual 2012                                                                                   (Decrease) From              Comments
                                                                    FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                 Original



404     Public Improvement Fund
                                          $       551,506
        Available Fund Balance - BOY                            $    568,006      $    559,637                              $    559,637    $        (8,369)


        Means of Financing
         Special assessments              $                 -   $             -   $                -   $                -   $           -   $             -
         Property taxes                                     -                 -                    -                    -               -                 -
         Federal & state grants                             -                 -                    -                    -               -                 -
         Charges for services                      40,416                     -                    -                    -               -                 -
         Sales of property                         21,090               5,000                      -                    -          5,000                  -
         Interest income                            5,700               7,500             1,924                2,553               7,500                  -
         Operating transfers in                             -                 -                    -                    -               -                 -


         Other                                     37,659              45,000                31              37,535               45,000                  -


                                          $       104,865       $      57,500     $       1,955        $     40,088         $     57,500    $             -



30936   Operating Expenditures
5100      Salaries & Benefits             $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                -                 -                    -                    -               -                 -
5300      Contractual Services                              -           5,000                      -                    -          5,000                  -
5400      Other Expenses                                    -                 -                    -                    -               -                 -
5700      Capital Outlays                          45,499                     -                    -                    -               -                 -
5900      Other Financing Uses                              -                                      -                    -                                 -


                                          $        45,499       $       5,000     $                -   $                -   $      5,000    $             -




90000   Project Expenditures
5200      Operating Supplies              $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                     51,235                     -                    -                    -               -                 -
5400      Other Expenses                                    -                 -                    -                    -               -                 -
5700      Capital Outlays                                   -                          139,064               39,303
                                                                     155,000                                                     140,000           (15,000) Lower than projected cost

                                          $        51,235       $    155,000      $    139,064         $     39,303         $    140,000    $      (15,000)

                                          $        96,734       $    160,000      $    139,064         $     39,303         $    145,000    $      (15,000)


                                          $       559,637
        Available Fund Balance - EOY                            $    465,506      $    422,528                              $    472,137    $        6,631
                                                                                                                                                                         Page 26 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                Increase
                                                                Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                              Actual 2012                                                                                   (Decrease) From   Comments
                                                                    FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                 Original


482     State Grants Fund
                                          $       237,439
        Available Fund Balance - BOY                            $    140,033      $    147,766                              $    147,766    $        7,733


        Means of Financing
         Special assessments              $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                   121,630            300,000            18,413              135,219              300,000                  -
         Sales of Property                                  -                 -                    -                    -               -                 -
         Interest income                            9,250                 500               153                         -            500                  -
         Operating transfers in                             -                 -                    -                    -               -                 -

         Other                                              -                 -                    -                    -               -                 -

                                          $       130,880       $    300,500      $     18,566         $    135,219         $    300,500    $             -



30936   Operating Expenditures
5100      Salaries & Benefits             $                 -   $             -   $                -   $                -   $           -   $             -
5200      Operating Supplies                                -                 -                    -                    -               -                 -
5300      Contractual Services                              -                 -                    -                    -               -                 -
5400      Other Expenses                                    -                 -                    -                    -               -                 -
5700      Capital Outlays                         120,505                     -                    -                    -               -                 -
5900      Other Financing Uses                    100,048              33,424                      -                    -         33,424                  -
                                          $       220,553       $      33,424     $                -   $                -   $     33,424    $             -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                              -                           11,629                 8,692
                                                                              -                                                   70,000            70,000
5700      Capital Outlays                                   -        320,000                       -                    -        250,000           (70,000)

                                          $                 -   $    320,000      $     11,629         $       8,692        $    320,000    $             -

                                          $       220,553       $    353,424      $     11,629         $       8,692        $    353,424    $             -



                                          $       147,766
        Available Fund Balance - EOY                            $      87,109     $    154,703                              $     94,842    $        7,733
                                                                                                                                                                                 Page 27 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                        Increase
                                                                        Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                      Actual 2012                                                                                   (Decrease) From   Comments
                                                                            FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                         Original



594     Marina & Launch Ramp Fund
                                                  $       243,852
        Available Cash Balance - BOY                                    $    229,401      $    263,362                              $    263,362    $       33,961

        Means of Financing
         Special assessments                      $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                                     -                 -                    -                    -               -                 -
         State shared revenue                                       -                 -                    -                    -               -                 -
         Charges for services                             198,418            180,000           129,115               73,315              180,000                  -
         Interest income                                    1,949                 800               755                  681                 800                  -
         Operating transfers in                                     -                 -                    -                    -               -                 -

         Other                                              9,952               3,000             3,325                5,283               4,000             1,000

                                                  $       210,319       $    183,800      $    133,195         $     79,279         $    184,800    $        1,000

70756   Operating Expenditures - Marina
5100      Salaries & Benefits                     $        17,276       $      20,949     $     14,747         $       5,289        $     20,949    $             -
5200      Operating Supplies                                9,912               8,900             2,136                1,720               8,900                  -
5300      Contractual Services                            155,456            124,654            74,318               79,336              124,654                  -
5400      Other Expenses                                      260                 250                      -             158                 250                  -
5700      Capital Outlays                                   5,806               7,800               527                   (13)             7,800                  -
5900      Other Financing Uses                                  47                    -                    -                    -               -                 -
          Other Cash Uses (e.g. Debt Principal)                     -                 -                    -                    -               -                 -
                                                  $       188,757       $    162,553      $     91,728         $     86,490         $    162,553    $             -


70759   Operating Expenditures - Ramps
5100      Salaries & Benefits                     $                 -   $       2,500     $         186        $                -   $      2,500    $             -
5200      Operating Supplies                                    90                500               823                         -          1,000               500
5300      Contractual Services                             11,371               9,580             3,840                4,962               9,580                  -
5400      Other Expenses                                            -                 -                    -                    -               -                 -
5700      Capital Outlays                                           -                 -                    -                    -               -                 -
5900      Other Financing Uses                                      -                 -                    -                    -               -                 -
          Other Cash Uses (e.g. Debt Principal)            (9,409)                    -                    -                    -               -                 -
                                                  $         2,052       $      12,580     $       4,849        $       4,962        $     13,080    $          500


90000   Project Expenditures
5200       Operating Supplies                     $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                      -                 -                    -                    -         30,000            30,000
5700      Capital Outlays                                           -                 -                    -                    -               -                 -
                                                  $                 -   $             -   $                -   $                -   $     30,000    $       30,000
                                                  $       190,809       $    175,133      $     96,577         $     91,452         $    205,633    $       30,500


                                                  $       263,362
        Available Cash Balance - EOY                                    $    238,068      $    299,980                              $    242,529    $        4,461
                                                                                                                                                                                                Page 28 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                        Increase
                                                                        Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                      Actual 2012                                                                                   (Decrease) From                Comments
                                                                            FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                         Original



661     Equipment Fund
                                                  $     2,880,251
        Available Cash Balance - BOY                                    $   2,427,131     $   2,373,196                             $   2,373,196   $      (53,935)


        Means of Financing
         Special assessments                      $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                                     -                 -                    -                    -               -                 -
         State shared revenue                                       -                 -                    -                    -               -                 -
         Charges for services                           2,033,929           2,300,000         1,018,466             965,172             2,300,000                 -
         Interest income                                   20,707              15,000           14,351                 7,811              15,000                  -
         Operating transfers in                                     -                 -                    -                    -               -                 -
         Other                                             82,380            100,000            36,251               42,702              100,000                  -
                                                  $     2,137,016       $   2,415,000     $   1,069,068        $   1,015,685        $   2,415,000   $             -


60932   Operating Expenditures
5100      Salaries & Benefits                     $       445,560       $    434,245      $    198,879         $    216,291         $    424,512    $        (9,733) Lower OPEB/Pension costs
5200      Operating Supplies                              806,413            951,500           335,349              348,219              951,500                  -
5300      Contractual Services                            733,902            784,533           338,744              322,506              784,533                  -
5400      Other Expenses                                      855               1,200                86                   72               1,200                  -
5700      Capital Outlays                                 577,576           1,125,000           55,763              443,598             1,172,331           47,331

5900      Other Financing Uses                                      -                 -                    -                    -               -                 -

          Other Cash Uses (e.g. Debt Principal)            79,765                     -                    -                    -               -                 -
                                                  $     2,644,071       $   3,296,478     $    928,821         $   1,330,686        $   3,334,076   $       37,598


90000   Project Expenditures
5200      Operating Supplies                      $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                      -                 -                    -                    -               -                 -
5700      Capital Outlays                                           -                 -                    -                    -               -                 -
                                                  $                 -   $             -   $                -   $                -   $           -   $             -
                                                  $     2,644,071       $   3,296,478     $    928,821         $   1,330,686        $   3,334,076   $       37,598


                                                  $     2,373,196
        Available Cash Balance - EOY                                    $   1,545,653     $   2,513,443                             $   1,454,120   $      (91,533)
                                                                                                                                                                                             Page 29 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                      Increase
                                                                      Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                    Actual 2012                                                                                   (Decrease) From               Comments
                                                                          FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                       Original



642     Public Service Building Fund
                                                $       268,058
        Available Cash Balance - BOY                                  $    277,397      $    383,301                              $    383,301    $      105,904


        Means of Financing
         Special assessments                    $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                                   -                 -                    -                    -               -                 -
         State shared revenue                                     -                 -                    -                    -               -                 -
         Charges for services                           969,342           1,087,448          542,645              484,671             1,087,448                 -
         Interest income                                  2,571               6,000             1,183                  986               6,000                  -
         Operating transfers in                                   -                 -                    -                    -               -                 -
         Other                                                    -                 -                    -                    -               -                 -
                                                $       971,913       $   1,093,448     $    543,828         $    485,657         $   1,093,448   $             -


60442   Operating Expenditures
5100      Salaries & Benefits                   $       571,707       $    603,405      $    262,438         $    275,805         $    588,803    $      (14,602) Lower OPEB/Pension costs
5200      Operating Supplies                             16,353              17,700             3,981                6,337              17,700                  -
5300      Contractual Services                          218,170            321,343           123,474               88,410              321,343                  -
5400      Other Expenses                                  9,785                 500                      -                    -            500                  -
5700      Capital Outlays                                14,068              14,500             4,502                7,710              14,500                  -
5900       Other Financing Uses                                   -                 -                    -                    -               -                 -
        Other Cash Uses and Adjustments (e.g.
                                                         26,587                     -                    -                    -               -                 -
        Debt Principal)
                                                $       856,670       $    957,448      $    394,395         $    378,262         $    942,846    $      (14,602)



90000   Project Expenditures
5200      Operating Supplies                    $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                    -        130,000                       -                    -        130,000                  -
5700      Capital Outlays                                         -                 -                    -                    -               -                 -
                                                $                 -   $    130,000      $                -   $                -   $    130,000    $             -
                                                $       856,670       $   1,087,448     $    394,395         $    378,262         $   1,072,846   $      (14,602)


                                                $       383,301
        Available Cash Balance - EOY                                  $    283,397      $    532,734                              $    403,903    $      120,506
                                                                                                                                                                                              Page 30 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                      Increase
                                                                      Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                    Actual 2012                                                                                   (Decrease) From                Comments
                                                                          FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                       Original



643     Engineering Services Fund
                                                $       (93,420) $
        Available Cash Balance - BOY                                          4,242     $     53,417                              $     53,417    $       49,175


        Means of Financing
         Special assessments                    $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                                   -                 -                    -                    -               -                 -
         State shared revenue                                     -                 -                    -                    -               -                 -
         Charges for services                           428,481            437,000           257,373              240,949              437,000                  -
         Interest income                                          4               10              258                     4                300               290
         Operating transfers in                                   -                 -                    -         75,000                     -                 -
         Other                                          105,783              40,000           69,162               28,198               80,000            40,000
                                                $       534,268       $    477,010      $    326,793         $    344,151         $    517,300    $       40,290


60447   Operating Expenditures
5100      Salaries & Benefits                   $       307,740       $    336,259      $    157,114         $    157,533         $    330,216    $        (6,043) Lower OPEB/Pension costs
5200      Operating Supplies                              5,842              10,330             2,429                1,058              10,330                  -
5300      Contractual Services                          123,597            109,690            46,976               59,677              109,690                  -
5400      Other Expenses                                          -           1,000                      -                    -          1,000                  -
5700      Capital Outlays                                 5,455               7,500             1,997                1,519               7,500                  -
5900       Other Financing Uses                                   -                 -                    -                    -               -                 -
        Other Cash Uses and Adjustments (e.g.
                                                        (55,203)                    -                    -                    -               -                 -
        Debt Principal)
                                                $       387,431       $    464,779      $    208,516         $    219,787         $    458,736    $        (6,043)


90000   Project Expenditures
5200      Operating Supplies                    $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                    -          10,000             4,030                6,043              10,000                  -
5700      Capital Outlays                                         -                 -                    -                    -               -                 -
                                                $                 -   $      10,000     $       4,030        $       6,043        $     10,000    $             -
                                                $       387,431       $    474,779      $    212,546         $    225,830         $    468,736    $        (6,043)


                                                $        53,417
        Available Cash Balance - EOY                                  $       6,473     $    167,664                              $    101,981    $       95,508
                                                                  0
                                                                                                                                                                                             Page 31 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                      Increase
                                                                      Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                    Actual 2012                                                                                   (Decrease) From               Comments
                                                                          FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                       Original



677     General Insurance Fund
                                                $     1,420,174
        Available Cash Balance - BOY                                  $   2,186,204     $   2,486,975                             $   2,486,975   $      300,771


        Means of Financing
         Special assessments                    $                 -   $             -   $                -   $                -   $           -   $             -
         Federal & state grants                                   -                 -                    -                    -               -                 -
         State shared revenue                                     -                 -                    -                    -               -                 -
         Charges for services                         4,511,726           3,232,475         1,751,248            2,120,823            3,232,475                 -
         Interest income                                 10,395              10,000           12,479                 3,930              15,000             5,000
         MERS Retireee Health Reimbursement                       -        840,000                       -                    -        840,000                  -
         Medicare Part D Rx Reimbursement                         -          35,000                      -                    -         35,000                  -
         MMRMA dividend payment                                   -                 -                    -                    -               -                 -
         Operating transfers in                          28,046              28,046           14,023               14,023               28,046                  -

         Other                                                    -        125,000              5,927                3,038             125,000                  -

                                                $     4,550,167       $   4,270,521     $   1,783,677        $   2,141,814        $   4,275,521   $        5,000


30851   Operating Expenditures
5100      Salaries & Benefits                   $        32,969       $      32,196     $     15,421         $     16,235         $     31,754    $         (442) Lower OPEB/Pension costs
5200      Operating Supplies                                      -             200                      -             166                 200                  -
5300      Contractual Services                        4,277,725           4,072,475         1,880,945            1,914,975            4,072,475                 -
5400      Other Expenses                                          -           1,000               384                         -          1,000                  -
5700      Capital Outlays                                         -           2,000               880                1,110               2,000                  -

5900      Other Financing Uses                           81,096            600,000           600,000                          -        600,000                  -

        Other Cash Uses and Adjustments (e.g.
                                                       (908,424)                    -                    -                    -               -                 -
        Debt Principal)

                                                $     3,483,366       $   4,707,871     $   2,497,630        $   1,932,486        $   4,707,429   $         (442)


90000   Project Expenditures
5200      Operating Supplies                    $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                                    -                 -                    -                    -               -                 -
5700      Capital Outlays                                         -                 -                    -                    -               -                 -
                                                $                 -   $             -   $                -   $                -   $           -   $             -
                                                $     3,483,366       $   4,707,871     $   2,497,630        $   1,932,486        $   4,707,429   $         (442)


                                                $     2,486,975
        Available Cash Balance - EOY                                  $   1,748,854     $   1,773,022                             $   2,055,067   $      306,213
                                                                                                                                                                                                   Page 32 of 38




        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                                      Increase
                                                                      Original Budget   Actual to Date       Actual to Date       2Q Reforecast
                                                    Actual 2012                                                                                   (Decrease) From                Comments
                                                                          FY2013          12/31/12             12/31/11              FY2013
                                                                                                                                                       Original
59 0    Sewer Fund
                                                $     3,320,219
        Available Cash Balance - BOY                                  $   3,723,675     $   3,701,462                             $   3,723,675   $             -

        Means of Financing
         Special assessments                    $             -       $           -     $           -        $           -        $           -   $            -
         Federal & state grants                               -              10,000                 -                    -               10,000                -
         State shared revenue                                 -                   -                 -                    -                    -                -
         Charges for services                         6,308,525           6,252,087         3,131,802            2,989,550            6,562,851          310,764    Prison reopening; higher use
         Interest income                                 25,008              15,000            11,243                8,119               15,000                -
         Repayment of DDA advance                             -                   -                 -                    -                    -                -
         Operating transfers in                               -                   -                 -                    -                    -                -
         Other                                          147,109             150,000            12,617               16,783              150,000                -
                                                $     6,480,642       $   6,427,087     $   3,155,662        $   3,014,452        $   6,737,851   $      310,764

30548   Operating Expenditures Administration
5100      Salaries & Benefits                   $             -       $          -      $          -         $          -         $          -    $             -
5200      Operating Supplies                                  -                  -                 -                    -                    -                  -
5300      Contractual Services                          333,856            305,029           120,269              134,208              305,029                  -

5400      Other Expenses                                 19,221               9,000             4,821                9,140               9,000                  -

5700       Capital Outlays                                    -                     -                    -                    -               -                 -
5900       Other Financing Uses                               -                     -                    -                    -               -                 -
        Other Cash Uses and Adjustments (e.g.
                                                         (3,965)                    -                    -                    -               -                 -
        Debt Principal)
                                                $       349,112       $    314,029      $    125,090         $    143,348         $    314,029    $             -


60559   Operating Expenditures Maintenance
5100      Salaries & Benefits                   $       481,291       $     705,087     $    249,847         $     211,609        $     689,464   $      (15,623) Lower OPEB/Pension costs
5200      Operating Supplies                             26,203              46,950           11,827                 9,413               46,950                -
5300      Contractual Services                        4,897,216             421,646          200,773             1,849,781              421,646                -
5400      Other Expenses                                      -               1,000                -                     -                1,000                -
5700      Capital Outlays                                   986              13,535            3,443                    12               13,535                -
5900      Other Financing Uses                                -                   -                -                     -                    -                -
                                                $     5,405,696       $   1,188,218     $    465,890         $   2,070,815        $   1,172,595   $      (15,623)

60557   Operating Expenditures Treatment
5100      Salaries & Benefits                   $                 -   $           -     $           -        $                -   $           -   $            -
5200      Operating Supplies                                      -               -                 -                         -               -                -
5300      Contractual Services                                    -       4,905,052         1,553,655                         -       5,000,000           94,948    Rate increase by County
5400      Other Expenses                                          -               -                 -                         -               -                -
5700      Capital Outlays                                         -               -                 -                         -               -                -
5900      Other Financing Uses                                    -               -                 -                         -               -                -
                                                $                 -   $   4,905,052     $   1,553,655        $                -   $   5,000,000   $       94,948

90000   Project Expenditures
5200       Operating Supplies                   $                 -   $             -   $                -   $                -   $           -   $             -
5300      Contractual Services                          344,591            650,000           210,602              299,276              665,000            15,000

5700      Capital Outlays                                         -                 -                    -                    -               -                 -

                                                $       344,591       $    650,000      $    210,602         $    299,276         $    665,000    $       15,000
                                                $     6,099,399       $   7,057,299     $   2,355,237        $   2,513,439        $   7,151,624   $       94,325


                                                $     3,701,462
        Available Cash Balance - EOY                                  $   3,093,463     $   4,501,887                             $   3,309,902   $      216,439
                                                                                                                                                                                                  Page 33 of 38



        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                                                             Increase
                                                                      Original Budget   Actual to Date   Actual to Date   2Q Reforecast
                                                    Actual 2012                                                                           (Decrease) From                Comments
                                                                          FY2013          12/31/12         12/31/11          FY2013
                                                                                                                                              Original

591     Water Fund
                                                $ 3,585,169
        Available Cash Balance - BOY                                  $ 2,350,991       $ 2,782,590                       $ 2,350,991 $                 -


        Means of Financing
         Special assessments                    $                 -   $             -   $            -   $            -   $           -   $             -
         Federal & state grants                                   -                 -           6,188                 -          7,000             7,000
         State shared revenue                                     -                 -                -                -               -                 -
         Charges for services - City                 2,903,177            3,072,151         1,684,502        1,443,458        3,317,357          245,206    7/1 rate increase; prison reopening
         Charges for services - Wholesale            1,870,053            1,953,279         1,093,362         924,113         2,212,549          259,270    Revised NS service contract
         Maintenance services - Township               177,450             170,000            59,984          110,782          170,000                  -
         Interest income                                19,625              20,000             6,227            7,090           20,000                  -
         Lease of facilities                           156,478             170,675            94,781           74,050          170,675                  -
         Repayment of DDA advance                                 -                 -                -                -               -                 -
         Operating transfers in                                   -                 -                -                -               -                 -
         Other                                         127,312             125,000            43,202           50,801          125,000                  -
                                                $ 5,254,095           $ 5,511,105       $ 2,988,246 $ 2,610,294           $ 6,022,581 $          511,476


30548   Operating Expenditures Administration
5100       Salaries & Benefits                  $                 -   $             -   $            -   $            -   $           -   $             -
5200       Operating Supplies                                     -                 -                -                -               -                 -
5300       Contractual Services                        537,845             558,002           233,262          224,341          558,002                  -

5400       Other Expenses                                17,683               6,000           11,061             5,652          12,000             6,000

5700       Capital Outlays                                        -                 -                -                -               -                 -
5900       Other Financing Uses                        410,187             384,694           191,615          203,794          384,694                  -
        Other Cash Uses and Adjustments (e.g.
                                                     1,507,904            1,250,000                  -                -       1,250,000                 -
        Debt Principal)
                                                $ 2,473,619           $ 2,198,696       $    435,938 $        433,787     $ 2,204,696 $            6,000


60559   Operating Expenditures Maintenance
5100       Salaries & Benefits                  $   795,793 $   736,692 $                    431,329 $        439,369 $   733,237 $               (3,455) Lower OPEB/Pension costs
5200       Operating Supplies                       228,357     200,837                      110,619          107,445     200,837                      -
5300       Contractual Services                     340,925     323,236                      199,935          192,542     323,236                      -
5400       Other Expenses                            43,297      52,430                       23,620           39,173      52,430                      -
5700       Capital Outlays                            5,714      16,600                       15,081            1,342      18,500                  1,900
5900       Other Financing Uses                           -           -                            -                -           -                      -
                                                $ 1,414,086 $ 1,329,795 $                    780,584 $        779,871 $ 1,328,240 $               (1,555)


60558   Operating Expenditures Filtration
5100      Salaries & Benefits                   $   633,066 $   725,591 $                    329,224 $        284,555 $   702,288 $              (23,303) Lower OPEB/Pension costs
5200      Operating Supplies                        228,723     268,477                      100,843          109,174     268,477                      -
5300      Contractual Services                      477,313     575,000                      187,221          189,353     575,000                      -
5400      Other Expenses                              2,469       3,600                        1,013              810       3,600                      -
5700      Capital Outlays                            55,988      55,000                       26,352           83,190      55,000                      -
5900      Other Financing Uses                            -           -                            -                -           -                      -
          Replacement Reserve - DWRF                      -           -                            -                -           -                      -
                                                $ 1,397,559 $ 1,627,668 $                    644,653 $        667,082 $ 1,604,365 $              (23,303)

90000   Project Expenditures
5200       Operating Supplies                   $         -$          -                 $         -$          -$          -$                           -
5300       Contractual Services                     771,410   1,110,000                     900,106     676,190   1,497,000                      387,000
5700       Capital Outlays                                -           -                           -           -           -                            -
                                                $   771,410 $ 1,110,000                 $   900,106 $   676,190 $ 1,497,000 $                    387,000
                                                $ 6,056,674 $ 6,266,159                 $ 2,761,281 $ 2,556,930 $ 6,634,301 $                    368,142

                                                $ 2,782,590
        Available Cash Balance - EOY                                  $ 1,595,937       $ 3,009,555                       $ 1,739,271 $          143,334
                                                                                                                                                     Page 34 of 38



City of Muskegon
Quarterly Budget Reforecast and 2012-13 Proposed Budget
                                                                             2012-13          2012-13
                                                                                                             2012-13 1Q       2012-13 2Q
                                                           Responsibility   Budgeted         Estimated                                                      Comments
                                                                                                             Reforecast       Reforecast
                                                                            Projects       Project Grants


                                                                 2012-13 BUDGETED PROJECTS


    101    General Fund

           VOIP Phone System                                   Maurer             20,000                            20,000           20,000    Year 2 of 5 Annual Payments, 0% Interest

           City Hall Tuckpointing                             Al-Shatel                -                            40,000           40,000              Carryover from FY12

           Irrigation Well at Lakeside Cemetery               Al-Shatel                -                            29,000                 -             Carryover from FY12

           Financial Management System                          Paul              50,000                                  -                -

                                                                                                         -          25,000           25,000              Federal Agreement
           ADA Compliance, Various Locations                  Al-Shatel           25,000

                                                                                                         -
           Parking Lots                                       Al-Shatel           70,000                            70,000           35,000                  Resurfacing

                                                                                                         -
           Windows Replacements at City Hall (Partial)        Al-Shatel           80,000                            80,000           80,000             Energy Improvements

                                                                                                         -
           City Hall HVAC Cleaning                            Al-Shatel                -                                  -          10,000

           Veteran's Park Upgrades                            Al-Shatel           12,000                 -          12,000           12,000                  City's Share

                                                                                 257,000                 -         276,000          222,000

    202    Major Streets

           Laketon, Wood to Getty                             Al-Shatel        1,000,000           313,000       1,000,000        1,200,000     Reconstruct-Concrete with STP Funds

           Sherman, Estes to Glenside                         Al-Shatel          780,000           301,000         780,000           20,000        Changed to Design Only in FY13

           Laketon, Beidler to Park                           Al-Shatel                -                 -          30,000           30,000              Carryover from FY12

           Getty, Laketon to Evanston                         Al-Shatel                -                 -          40,000           40,000              Carryover from FY12

           Sherman, Lincoln to Estes                          Al-Shatel        1,100,000           481,000       1,100,000        1,100,000               STP Grant Funds

           Speed Limit Evaluations                            Al-Shatel           20,000                 -          20,000           10,000          In-House Engineering Costs

           M-120 Over North Branch of River                   Al-Shatel           16,000                 -          16,000           16,000    MDOT Project - 8.75% City Participation

           Clay, Fourth to Third; Third, clay to Western      Al-Shatel          100,000                 -         100,000          145,000                 Reconstruction

           Southern Avenue, 5th to Sanford                    Al-Shatel          100,000                 -          10,000           10,000              Design Only in FY13

           Terrace Street, Apple to Western                   Al-Shatel                -                 -                -          22,000         Payment to State for City share

           Street Lights Removal                              Al-Shatel           10,000                 -          10,000                 -               Where Possible

           Sherman/Glenside Traffic Signal                    Al-Shatel                -           200,000                -         262,000
                                                                                                                                                                   Page 35 of 38



City of Muskegon
Quarterly Budget Reforecast and 2012-13 Proposed Budget
                                                                                             2012-13          2012-13
                                                                                                                             2012-13 1Q       2012-13 2Q
                                                                          Responsibility    Budgeted         Estimated                                                    Comments
                                                                                                                             Reforecast       Reforecast
                                                                                            Projects       Project Grants


                                                                                2012-13 BUDGETED PROJECTS
           Traffic Signal Warrants                                           Al-Shatel            40,000                 -          70,000           70,000            If Warrants Not met

                                                                                               3,166,000         1,295,000       3,176,000        2,925,000

    203    Local Streets

           Harbour Towne Circle Milling & Resurfacing                        Al-Shatel           250,000                 -         250,000          250,000       Consent Special Assessment

           Bourdon, Fair to Lakeshore Drive                                  Al-Shatel           225,000                 -         200,000          200,000

           Williams Street Outfall                                           Al-Shatel                 -                 -         135,000          121,000            Emergency Project

           Wickham, Sherman to Glen                                          Al-Shatel           300,000                 -         300,000          300,000

           Paver Management System                                           Al-Shatel            20,000                 -          20,000           20,000        In-House Engineering Costs

                                                                                                                         -          10,000           10,000              Where Possible
           Street Lights Removal                                             Al-Shatel            10,000

                                                                                                 805,000                 -         915,000          901,000

    404    Public Improvement Fund

           SCBA Gear for Firefighters                                         Lewis              155,000                 -         135,000          140,000



    408    Arena Improvement Fund

           Security Cameras                                                    Paul                5,000                 -           5,000            5,000

           Emergency Lighting Backup                                           Paul                    -                 -          15,000           15,000           Higher Priority Project

           Remodel One Visitor Locker Room                                     Paul               15,000                 -                -                -    Will Help Attract HS Team to Arena

                                                                                                  20,000                 -          20,000           20,000

    482    State Grants Fund

           EPA Grant                                                      Brubaker-Clarke         50,000            50,000          50,000           50,000

           SmartZone Pre-Seed                                             Brubaker-Clarke         20,000                 -          20,000           20,000

           Musketawa Trail Connection-phase IB (Keating to Black Creek)      Al-Shatel           250,000           250,000         250,000          250,000    Contingent Upon DNR Land Purchase

                                                                                                 320,000           300,000         320,000          320,000

    590    Sewer

           Sewer Rehabilitation Project (various projects)                   Al-Shatel           120,000                 -         120,000          120,000    Lining of Manholes and Sewer Lines
                                                                                                                                                                        Page 36 of 38



City of Muskegon
Quarterly Budget Reforecast and 2012-13 Proposed Budget
                                                                                              2012-13          2012-13
                                                                                                                              2012-13 1Q       2012-13 2Q
                                                                            Responsibility   Budgeted         Estimated                                                        Comments
                                                                                                                              Reforecast       Reforecast
                                                                                             Projects       Project Grants


                                                                                  2012-13 BUDGETED PROJECTS
           Austin Lift Station, Design                                         Al-Shatel           10,000                 -          10,000           10,000                    Design Only

           Evanston Lift Station                                               Al-Shatel          200,000                 -         200,000          200,000                      Rebuild

           GIS Update and Maintenance                                          Al-Shatel           20,000                 -          20,000           20,000        County Licensing, Map Maintenance

           Laketon, Wood to Getty                                              Al-Shatel                -                 -                -          15,000

           Beidler St., Hackley to 700' South of                               Al-Shatel          160,000                 -         160,000          160,000               Lining or Replacement

           Infiltration Study                                                  Al-Shatel           65,000                 -          65,000           65,000              Engineering/Design Only

                                                                                                                          -          75,000           75,000              Feasability/Engineering
           Sewer Treatment Facility                                            Al-Shatel           75,000

                                                                                                  650,000                 -         650,000          665,000

    591    Water

           Water Main Replacements, Various Locations - 2" & 4" Watermain      Al-Shatel           75,000                 -                -                -

           Laketon, Wood to Getty                                              Al-Shatel           35,000                 -          35,000          195,000    Water Repairs Associated With Street Project

           Bourdon, Fair to Lakeshore Drive                                    Al-Shatel                -                 -         120,000          132,000    Water Repairs Associated With Street Project

           Sherman, Lincoln to Estes                                           Al-Shatel           80,000           106,000         180,000          200,000    Water Repairs Associated With Street Project

           Hackely, Hudson to Glen                                             Al-Shatel          675,000                 -         675,000          645,000          Replace Watermain & Services

           Sherman; Estes to Glenside                                          Al-Shatel           50,000                 -          50,000            5,000          Changed to Design Only in FY13

           GIS Update and Maintenance                                          Al-Shatel           20,000                 -          20,000           10,000        County Licensing, Map Maintenance

           Reliability Study, Plant                                            Al-Shatel           45,000                 -          45,000           45,000        Required by MDEQ Every Five years

           Switchgear                                                          Al-Shatel                -                 -                -         135,000

           Plant Clearwell Upgrades per 2010 study                             Al-Shatel          105,000                 -         105,000          105,000

                                                                                                                          -          25,000           25,000
           Engineering Services for Harvey St. Reservior Upgrades              Al-Shatel           25,000

                                                                                                1,110,000           106,000       1,255,000        1,497,000

    642    Marina

           Launch Ramp Repairs (Fisherman's Landing & Grand Trunk)             Al-Shatel                -                 -                -          30,000             Work to be done in-house

                                                                                                        -                 -                -          30,000

    642    PSB
                                                                                                                                                   Page 37 of 38



City of Muskegon
Quarterly Budget Reforecast and 2012-13 Proposed Budget
                                                                            2012-13          2012-13
                                                                                                           2012-13 1Q       2012-13 2Q
                                                          Responsibility   Budgeted         Estimated                                                      Comments
                                                                                                           Reforecast       Reforecast
                                                                           Projects       Project Grants


                                                                2012-13 BUDGETED PROJECTS
                 Employee parking lot resurfacing            Al-Shatel          130,000                -         130,000          130,000             Resurface Parking Lot

                                                                                130,000                -         130,000          130,000

     643         Engineering Services

                 Intergovernmental Engineering Work          Al-Shatel           10,000                -          10,000           10,000

                                                                                 10,000                -          10,000           10,000

     661         Equipment Fund

 5720/Quantity   Non-Vehicular Equipment:

       1         Scale                                       Al-Shatel           12,000                -          12,000           12,000                      New

       1         Hoist to Service Fire Engines               Al-Shatel                -                -                -          50,000                      New

       1         Concrete Saw                                Al-Shatel                -                -          25,000           25,000                      New

                                                                                                       -          16,000           16,000          Replacements for Cemeteries
       2         Mower                                       Al-Shatel           16,000

                                                                                 28,000                -          53,000          103,000

     5746        Communications Equipment:

       2         Video System                                Al-Shatel           16,000                -          16,000           16,000                      New

       4         Radios-Police                               Al-Shatel           20,000                -          20,000           20,000       Mobile/Portables (Police) Multi-Band

      12         Radios - DPW                                Al-Shatel            9,000                -           9,000            9,000                 Replacements

      60         GPS - units                                 Al-Shatel           25,000                -          25,000           25,000                     Lease

                                                                                                       -           6,000            6,000                      New
       3         Light bars                                  Al-Shatel            6,000

                                                                                 76,000                -          76,000           76,000

     5730        Vehicles:

       2         Patrol Cruisers                             Al-Shatel           50,000                -          50,000           50,000

       4         Pickup Truck, 4X4 (1/2 ton)                 Al-Shatel          100,000                -         100,000           93,983

       1         Loader                                      Al-Shatel          150,000                -         150,000          123,848       Replaces 1999 Loader @ Salt Shed

       2         Plow Truck                                  Al-Shatel          280,000                -         280,000          280,000     Replaces 1992 Vehicles (#620 & #622)

       3         Sedans                                      Al-Shatel           60,000                -          60,000           60,000   Replaces Police Vehicles (#161, #186, #188)
                                                                                                                                                        Page 38 of 38



City of Muskegon
Quarterly Budget Reforecast and 2012-13 Proposed Budget
                                                                                2012-13          2012-13
                                                                                                                    2012-13 1Q          2012-13 2Q
                                                          Responsibility       Budgeted         Estimated                                                       Comments
                                                                                                                    Reforecast          Reforecast
                                                                               Projects       Project Grants


                                                                2012-13 BUDGETED PROJECTS
     1     3/4 Ton Truck                                     Al-Shatel               25,000                 -              25,000              25,000   Replaces Vehicle #573 - Parks

     1     1 Ton Truck                                       Al-Shatel               28,000                 -              28,000              28,000               New

     1     Sewer Jet                                         Al-Shatel              200,000                 -             200,000             204,500     Carryover From Prior Year

     1     Pothole Patcher                                   Al-Shatel              115,000                 -             115,000             115,000               New

                                                                                                            -              13,000              13,000          Replaces Pug
     1     Utility Vehicle - Cemetery                        Al-Shatel               13,000

                                                                                  1,021,000                 -           1,021,000             993,331

            Total Equipment Fund                                                  1,125,000                 -           1,150,000           1,172,331



                                                                           $      7,593,000   $     1,701,000   $       7,902,000   $       7,892,331
Date:    January 12, 2013

To:      Honorable Mayor and City Commissioners

From: Engineering
RE:      Establish Terrace Plaza Ct. as street name


SUMMARY OF REQUEST:

The section of public road between Terrace Plaza building and the bank be assigned
the name of Terrace Plaza Court (Ct.). This section of road was a part of the old
Terrace Street before it was realigned to connect to Shoreline Dr. construction. See
attached location map.

FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Assign the name of Terrace Plaza Ct and authorize staff to install street name signs.



COMMITTEE RECOMMENDATION:
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____________________________________________________________________________________________

SUMMARY OF REQUEST: Award the Procurement Building Contract to Schmidt
Roofing and Construction for the 2013 year to be used by the Community and
Neighorhood Services for HOME rental projects.
The CNS office solicited bids through public notices for a variety of trades.
Attached are the bid results for Building Contractor.
FINANCIAL IMPACT: The funding for all projects would be used from the income
received from our Rental/Lease Program.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the selected Building Contractor
through the Procurement Process.
COMMITTEE RECOMMENDATION: None required.
                                           Community and Neighborhood
                                                    Services
MEMO                                                City of Muskegon
                                                       933 Terrace
                                                      Second Floor
                                                   Muskegon, MI 49442
                                                    Ph: 231-724-6717
                                                    Fax: 231-726-2501




Date:       January 22, 2013

To:         Bidding Contractors

From:       Oneata Bailey, Director
            Community and Neighborhood Services
            City of Muskegon

Re:         Bid Results for Building Procurement Contractor

Community and Neighborhood Services received the following bid proposals:

Bid Address:      218 Catherine

Holden Construction:           $7,950
Fredricks Construction:        $9,550
Schmidt Roofing:               $11,125
Greenstone Construction:       $11,507
Beattie Bros. Construction:    $11,543
Statewide Abatement:           $12,365
Midwest Builders:              $13,310
Bradfield Home Imp.:           $14,125


The City of Muskegon reserves the right to accept or reject any and all bids. The
City of Muskegon is also not restricted to accept the lowest bid.
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SUMMARY OF REQUEST: To approve the attached resolution and direct the
Mayor and Clerk to sign Quit Claim Deed to Mr. Ty Ross, of 1197 Terrace, for
the vacant lot at 1189 Terrace St. Mr. Ross will purchase it for $1000.00.
FINANCIAL IMPACT: The proceeds from the sale will be used to cover NSP1
projects.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct CNS staff
to file the Quit Claim Deed.
COMMITTEE RECOMMENDATION: None.
                   MUSKEGON CITY COMMISSION



           RESOLUTION TO APPROVE THE PURCHASE OF
        CURRENTLY CITY-OWNED PROPERTY AT 1189 TERRACE


WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;



WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;



WHEREAS, the City of Muskegon is dedicated               to   promoting
homeownership throughout its neighborhoods;



NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the sale of City-owned vacant property located at 1189 Terrace
Street to Ty Ross, of 1197 Terrace Street.

Adopted this 12th day of February, 2013.

Ayes:

Nays:


                          By ______________________________
                             Stephen Gawron, Mayor


                          By ______________________________
                             Ann Marie Cummings, MMC City Clerk
                                                        QUIT-CLAIM DEED

KNOW ALL MEN BY THESE PRESENTS: That the City of Muskegon, a municipal corporation, of
933 Terrace Street, Muskegon, Michigan 49440,

QUIT CLAIMS to Ty Adam Ross, a single man, of 1197 Terrace Street, Muskegon, Michigan 49442

the following described premises situated in the City of Muskegon, Muskegon County, Michigan:

  CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 9 BLK 239 EXC W 33 FT OF N 32
  FT & ALSO EXC E 5 FT OF W 38 FT OF N 15 FT

  City of Muskegon 24-205-239-0009-00

  for the sum of: $1000.00

This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(a)(h)(i) and
MCLA 207.526 Sec. 6(a)(h)(i).

Dated this           day of _____________, 2013.                            City of Muskegon

                                                                            By:_________________________________
                                                                            Stephen Gawron, Its Mayor

                                                                            By:_________________________________
                                                                            Ann Marie Cummings, City Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
       Signed and sworn to before me in Muskegon County, Michigan, on ______________, 2013, by
Stephen Gawron and Ann Marie Cummings the Mayor and City Clerk, respectively, of the City of
Muskegon, a municipal corporation, on behalf of the City.

                                                                            _____________________________________
                                                                            __________________________, Notary Public
                                                                            Muskegon County, Michigan
                                                                            My commission expires _________________
PREPARED BY: Oneata Bailey
City of Muskegon
933 Terrace Street/P.O. Box 536
Muskegon, MI 49443-0536
Telephone: 231/724-6717
WHEN RECORDED RETURN TO: Grantee
SEND SUBSEQUENT TAX BILLS TO: Grantee


C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\1189 Terrace -Quit Claim to adjacent neighbor.DOC
Date:     2/12/13

To:       Honorable Mayor and City Commissioners

From: DPW/Equipment
RE:       New Police Cruisers


SUMMARY OF REQUEST:

Authorize staff to purchase three (3) new Chevy Caprice patrol vehicles, total purchase
price of $83,904.00 from Shaheen Chevrolet, the Mi Deal (state contract) awarded
dealership.


FINANCIAL IMPACT:
$83,904.00
BUDGET ACTION REQUIRED:
None. Amount is what was budgeted.
STAFF RECOMMENDATION:
Authorize staff to purchase new Police cruisers from Shaheen Chevrolet.




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\Comm agenda item to purchase
new cruisers2013 (2).doc
Date:    February 12, 2013

To:      Honorable Mayor and City Commissioners

From: Engineering
RE:      Transportation Improvements Program Submittal for:
         2014-2017 Projects



SUMMARY OF REQUEST:

Authorize staff to submit the attached list of projects to the West Michigan Shoreline
Regional Development Commission for inclusion in the FY 2014 – 2017 Transportation
Improvement Program (TIP). Projects submitted will be considered for Federal and
State transportation funding. Adoption of the attached resolution is required as part of
the submittal to commit the local match should funds become available.



FINANCIAL IMPACT:
None at this time; however, a local match will be required should we receive a grant for a
particular project.



BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Approve the project submittal and resolution.



COMMITTEE RECOMMENDATION:
                                      Resolution No.______________

  RESOLUTION FOR AUTHORIZATION TO REQUEST THE WEST MICHIGAN SHORELINE REGIONAL
      DEVELOPMENT COMMISSION TO INCLUDE THE CITY'S PROJECTS IN THE 2014-2017
                     TRANSPORTATION IMPROVEMENT PROGRAM



WHEREAS, the Federal Transit Administration, the Federal Highway Administration and the Federal Aviation
Administration, through the Intermodal Surface Transportation Efficiency Act of 1991; Act 51, P.A. 1951; and
various other Federal and State acts, in cooperation with the Michigan Department of Transportation, makes
funding available for local jurisdictions and agencies for transportation improvements projects; and

WHEREAS, the West Michigan Shoreline Regional Development Commission (WMSRDC) is the organization
designated by the Governor as being responsible, together with the state, for carrying out provisions of 23
U.S.C. 134 (Federal Aid Planning Requirements) and the WMSRDC has deferred to the Muskegon Area
Transportation Planning Program's (MATPP's) Policy Committee upon recommendation of the MATPP
Technical Committee all matters of policy and approval related to transportation planning work programs, the
long range transportation plan, and the Transportation Improvement Programs; and



WHEREAS, the WMSRDC is responsible, through the MATPP Advisory Committees (Technical and Policy), for
implementing the federally required "3-C" urban transportation planning process, including the development of
the transportation Improvement Program; and



WHEREAS, the 3-C planning process for Muskegon County has been certified according to the requirements of
25 CFR 450.114(c); and

WHEREAS, the City of Muskegon desires to secure financial assistance from the federal and/or State
government to help defray the cost of the attached proposed transportation projects; and

WHEREAS, the required local match for the requested funding is available [or will be available] and committed
to the proposed projects upon grant approval;

NOW, THEREFORE BE IT RESOLVED that the City of Muskegon requests the West Michigan Shoreline
Regional Development Commission to consider inclusion of the projects in the priority list of Transportation
Improvement Program for the Fiscal Years 2014-2017.



                                                                     BY:   _______________________
                                                                           Stephen Gawron, Mayor

                                                                    Attest: _______________________
                                                                           Ann Marie Cummings, Clerk




        Date
                                         Proposed STP Projects for the 2014 thru 2017 TIP; City of Muskegon

Year    Ranking Project                 Limits                     length (ft) type of work                      Federal $   Local Share Total cost

 2014           As called for in the current TIP

 2015      1    Henry Street            Sherman to Hackley           2700     reconstruction                     $600,000.00 $180,000.00 $780,000.00
           2    Latimer                 Black Creek to Port City     2200     reconstruction                     $299,000.00 $76,000.00 $375,000.00

 2016      1    Laketon Ave.            Nevada to Lakeshore Dr.      2200     reconstruction                     $680,000.00 $170,000.00 $850,000.00
           2    Getty                   Evanston to Apple            1850     reconstruction                     $400,000.00 $100,000.00 $500,000.00

 2017      1    Laketon Ave.            Getty to Creston             3800     full depth milling & resurfacing   $760,000.00 $190,000.00 $950,000.00
           2    Muskegon Ave.           9th to 7th                   950      reconstruction                     $240,000.00 $60,000.00 $300,000.00
                             AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:            Honorable Mayor and City Commission


FROM:          Department of Public Works


DATE:          February 12, 2013


SUBJECT:       Contract Extension Agreement-1 year Street Sweeping Contract for 2013


SUMMARY OF REQUEST:
To exercise the option for a 1-year contractual extension, as outlined in the previous 3-year
contract with TRI-US SERVICES, INC., to provide street sweeping services for 2013.


FINANCIAL IMPACT:
$139,700.50 cost for 1 year contract extension. Funds to cover all expenses are budgeted.
Trunkline expenses are reimbursed by State funding.


BUDGET ACTION REQUIRED:
None; monies appropriated in Highway and State trunkline budgets


STAFF RECOMMENDATION:
Approve request to contract out service for 1-year extension as specified in previous contract.
        Honorable Mayor and City Commission
To:

        Department of Public Works
From:

        2/12/2013
Date:

        Street Sweeping Extension-2013
Re:




The Department of Public Works is requesting permission to exercise its contractual
option (per the 2010-12 contract) to enter into 1-year contractual agreement with
TRI-US SERVICES, INC, to provide street sweeping services for 2013.

TRI-US SERVICES, INC., 78 Ball Creek NW, Kent City. Mi has been our sole
street sweeping contractor from 1997 to present. During the course of those years
they have provided excellent service to our community and its residents. They also
have been the low bidder in each of the 4 previous bids (1997-99, 2002-4, 2006-8
and 2010-12). They have either held their price or added a slight increase each time
an extension (2000/2001/2005/2009) has been approved.
1997 thru 1999 contract                                                 3 year totals
TRI-US SERVICES, INC.     bid $104,130.76 x 3 years                     $312,392.28
SANI-SWEEP, INC.          bid $123,867.76 x 3 years                     $371,603.28

2002 thru 2004 contract                                                 3 year totals
TRI-US SERVICES, INC      bid $113,662.24 x 3 years                     $340,986.72
SANI-SWEEP, INC.          bid $156,879.56 x 3 years                     $470,638.68

2006 thru 2008 contract                                                 3 year totals
TRI-US SERVICES, INC,     bid $148,981.60 x 3 years                     $446,944.80
SANI-SWEEP, INC.          bid $203,602.40 x 3 years                     $610,807.20

2010 thru 2012 contract                                                 3 year totals
TRI-US SERVICES, INC,     bid $139,700.50 x 3 years                     $419,101.50
SANI-SWEEP, INC.          bid $190,057.60 x 3 years                     $570,172.80


TRI-US SERVICES, INC.                                                   1 year totals
2000 contract extension   $104,130.76 x 1 year-(held price)             $104.130.76
2001 contract extension   $107,775.33 x 1 year-(3.5% fuel surcharge)     $107,775.33
2005 contract extension   $137,866.40 x 1 year-(fuel/operating costs)    $137,866.40
2009 contract extension   $148,981.60 x 1 year-(held price)             $148, 981.60




                                                                                        1
At this time staff is proposing to enter into a 1 year contract extension with TRI-US
SERVICES, INC and they have submitted the following proposal:

2013 contract extension ----City of Muskegon Roadways------------ $127,310.10
                            State of Michigan (MDOT) Roadways--$ 12,390.40

                                                  TOTAL         $139,700.50




TRI-US SERVICES, INC. has held their 2010-12 contract price of $139,700.50 for
the proposed 2013 contract extension. They continue to provide us with excellent
customer service and meet all of our special request needs with little or no prior
notice. They will continue to sweep the city roadways 4 times during the period
from April 1st to October 15th as stipulated in the previous 2010-12 contract.

Therefore, at this time, staff is recommending to the Commission to approve the
request to enter into agreement with TRI-US SERVICES, INC.




                                                                                        2
            TRI-US SERVICES INC.
              78 Ball Creek Rd PO Box 123, Kent City, MI 49330
        Phone: (616) 678-5555 ~ Email: [email protected]



January 11, 2013


City of Muskegon
Attention: Doug Sayles
Phone: (231) 724-6993
Email: [email protected]


RE: City of Muskegon Contract Extension for 2013


Tri-Us Services would like to extend the current contract dated March 23, 2010 for 2013
based on the following conditions…

        (If State Extends ALL 4 Sweeps)
                City of Muskegon $127,310.10
                State of Michigan $12,390.40
                                               TOTAL   $139,700.50

        (If State only elects 1 Sweep)
                City of Muskegon $127,310.10
                State of Michigan $ 6,720.00
                                               TOTAL   $134,030.10


Appreciatively,

Jennifer Schillim
Jennifer Schillim
Office Manager
Email: [email protected]
                          AGENDA ITEM NO. ___________________

                CITY COMMISSION MEETING             ________________________




TO:          Honorable Mayor and City Commissioners

FROM:        Bryon L. Mazade, City Manager

DATE:        January 22, 2013

RE:          2013-2014 Labor Agreement with Police Command Union




SUMMARY OF REQUEST:
To approve the tentative bargaining agreements between the City of Muskegon and the Police
Command Union (Command Officers Association of Michigan) for years 2013 and 2014.




FINANCIAL IMPACT:
Previously provided.




BUDGET ACTION REQUIRED:
None at this time.




STAFF RECOMMENDATION:
To approve the tentative agreements and the attached resolution to change the pension
benefits.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA – 2013-14 LABOR AGRMNT W/ POLICE COMMAND UNION 012213
RESOLUTION FOR CHANGING MERS BENEFITS
(OTHER THAN DB COMPONENT OF HYBRID PROGRAM)

In accordance with the MERS Plan Document of 1996, the City of Muskegon
                                                                                      (Participating Municipality)
6116                  adopts the following benefits for: Division 22 - Police Command
                                                                      (Reporting Unit No., MERS Division No. and Name)
 (Municipality No.)

A “division” is defined as an employee or group of employees covered by the same benefit programs and the same
employee contribution program. Each division has a specific MERS number and name, such as “Div. 10, General-
Admin.,” and is part of a Reporting Unit, such as: “01.”

Supporting Supplemental Valuation is dated 12/04/2012

BENEFIT MULTIPLIER
From _____________________                 To ____________________                    Effective Date _________________
        (Current Benefit Multiplier)             (New Benefit Multiplier

Provisions for Earlier Normal Retirement
…                  …                        …
     F50/25              F50/30                  F(N)-Years and Out (Specify number of years) ____________________
…                  …                        …                        … F55/30
     F55/15              F55/20                  F55/25
Effective Date 03/01/2013


EMPLOYEE CONTRIBUTION RATE                                                   ADDITIONAL BENEFITS
                                                                           AFFECTING FUTURE RETIREES

                                                          … FAC 3 … FAC 5 … V-6 … V-8 … V-10 … RS - 50%
New Rate

                                                          … D-2 … E-2 … DROP+ with ______ %
Effective Date
                                                                              Effective Date

RETIREE COST-OF-LIVING BENEFIT PROGRAMS FOR CURRENT RETIREES

…                       …
    E Standard              E-1
…   E - Other (Specify Factor                              Adjustment Years                             )

Effective Date

WINDOW PERIOD (If applicable)

From                                                 To
                       (Date)                                                   (Date)
                                                                   Muskegon City Commission
                                                                                                                     __________________
I CERTIFY THAT THE ABOVE WAS ADOPTED BY
                                                                             Governing Body                             Date of Meeting
                                                                           City Clerk
______________________________________                 ____________________________________                     ______________________
              Authorized Signature                                            Title                                        Date

NOTE: Standard/Nonstandard Benefit Provisions—Attach page fully describing provision(s), and (1) a complete copy of the
fully executed collective bargaining agreement and a certified copy of official minutes where the collective bargaining agreement or
this Resolution was adopted, or (2) a copy of the arbitration or mediation decision. If further information is needed, please contact
MERS Employer Services Division at 1 (800) 767-6377.




F18 Resol Chng MERS Bene 9-19-06
MERS Form (F-18) Continued


Additional benefit changes for division 22 (Police Command):

   1. Reduce maximum pension amount from 80% to 75%
   2. Overtime pay no longer to be included in final average compensation
   3. Accumulated leave payout includable in final average compensation is capped at
      240 total hours.
December 4, 2012

Mr. Timothy Paul
City of Muskegon

In care of:
Municipal Employees' Retirement System of Michigan
1134 Municipal Way
Lansing, Michigan 48917

Subject: Supplemental Valuation for the City of Muskegon (6116), Division(s) 22

Attached are the results of a supplemental valuation prepared for the City of Muskegon in
order to determine the contributions necessary to support the following Benefit Program under
the Municipal Employees' Retirement System of Michigan, in accordance with Act. No. 427 of
the Public Acts of 1984, as amended, and the MERS plan document as revised:

                            Division                 Change in Benefit
                        Police Comm (22)          50/25; 3.0% (75% max);
                                                 Exclude overtime in FAC;
                                                 Max 240 leave hrs. in FAC



This report may be provided to other interested parties only in its entirety and only with
the prior permission of MERS and the municipality.

Please see the Important Comments and the Comments on the Investment Markets,
immediately following this cover letter, for important information which is essential to
understanding the results presented in this report. In addition, please review the Impact of
Adopting the Benefits page(s) following the Employer Computed Contributions page(s).

Sincerely,




Cathy Nagy, FSA, MAAA             W. James Koss, ASA, MAAA
Actuary                           Actuary
               MERS Supplemental Valuations - Important Comments

1. As amended, effective July 1, 2012, Section 43C of the MERS Plan Document includes
   the following requirements, which are not modifiable (subsection (5)):
       a. At the time a supplemental actuarial valuation is requested, and at the time a
           new benefit provision is adopted, the employer must be current in the payment of
           all required employer and member contributions (subsection (1)).
       b. Both the requesting division and the participating municipality or court must be
           not less than 100% funded on an actuarial basis as of the last December 31
           valuation date, based on the actual benefit provisions in effect when the
           supplemental valuation is requested or completed. The governing body may
           make a cash contribution, or transfer employer assets from a different division, or
           both, in order to meet the 100% requirement. If the requirement is not met,
           MERS and its actuary will not complete the requested supplemental valuation
           (subsection (2)).
       c. The proposed benefit provisions may not be adopted if the results of the
           supplemental valuation disclose there would be a funded percentage less than
           100% on an actuarial basis (using the same valuation date as in requirement
           (b.)) for either the division or the entire municipality or court. The governing body
           may make a cash contribution, or transfer employer assets from a different
           division, or both, in order to meet the 100% requirement (subsection (3)).
       d. The 100% funded percentage requirements "shall not preclude a participating
           municipality or court whose actuarial funded level is below the required funded
           level from requesting a valuation, where the purpose of the valuation is to reduce
           actuarial liabilities by the proposed change in the existing benefit program," and
           shall not preclude adoption of the change where the valuation results indicate the
           change reduces such liabilities (last sentence of subsections (2) and (3)).
2. The reader of this report should keep in mind that actuarial calculations are by their
   nature imprecise, as they are mathematical estimates based on current data and
   assumptions of future events (which may or may not materialize).
3. Actuarial calculations can and do vary from one valuation year to the next, sometimes
   significantly if the group valued is very small (less than 30 lives). As a result, the cost
   impact of a benefit change may fluctuate over time, as the demographics of the group
   changes.
4. The calculations in this report were prepared based on December 31, 2011
   demographic and financial information unless noted elsewhere in the report.
5. The valuation date is December 31, 2011.
6. The valuation methods and Retirement Board-approved assumptions are consistent
   with those used in the December 31, 2011 Annual Actuarial Valuation, unless noted
   elsewhere in the report.



                                                                                      Page 2 of 7
               MERS Supplemental Valuations - Important Comments

7. In the event that more than one plan change is being considered, the user of this report
    should remember that the results of separate actuarial valuations cannot be added
    together. The total can be considerably greater than the sum of the parts due to the
    interaction of various plan provisions with each other and with the assumptions used.
8. Retirement benefits and employer contributions are based on a percentage of members’
    gross pays, including base pay, overtime pay, longevity pay, and several other
    miscellaneous items. If total gross payroll exceeds the reported salaries, the dollar
    contribution amounts shown in this report should be increased proportionately. The
    above percentages of payroll will not be affected, however.
9. For divisions that are closed to new hires, with the new hires, transfers (unless the
    Alternate Transfer Provision is adopted by the municipality) and rehires being covered
    by the MERS DC Plan, by any non-MERS DB or DC plan or by no plan, the Retirement
    Board has adopted the “Amended Amortization Policy for Closed Divisions Within Open
    Municipalities”. This policy accelerates the payment of the unfunded accrued liability.
10. The results in this report were based on information provided to MERS by the
    municipality. The actuary is unaware of any additional information that would impact
    these results. If the information in the “Request for Supplemental Valuation” is incorrect
    or incomplete, the actuary does not assume responsibility for the accuracy of that
    information, and the requester (or reader) of this valuation report may not rely on the
    results and should advise MERS promptly.
11. The results in this report do not show the potential impact that the adoption of the
    revised benefits may have on other post-employment benefits (such as retiree health
    care insurance) or ancillary benefits (such as life insurance).
12. If the user of this report is not sure how to interpret certain results in the report or how to
    read the report, they should contact the MERS Office of Marketing and Employer
    Services at (800) 767-6377 before relying on the results in this report.
13. Additional disclosures required by Actuarial Standard of Practice:
         a. This report was prepared at the request of the municipality and is intended for
            use by the municipality and those designated or approved by the municipality.
            The report may be provided to parties other than the municipality only in its
            entirety and only with the permission of MERS and the municipality.
         b. The purpose of the supplemental valuation is to show the impact of the proposed
            benefit change on the employer contribution.
         c. One or more of the signing actuaries are Members of the American Academy of
            Actuaries (MAAA) and meet the Qualification Standards of the American
            Academy of Actuaries to render the actuarial opinion contained herein. The
            signing actuaries are employees of MERS.




                                                                                        Page 3 of 7
           MERS Supplemental Valuations - Important Comments

d. All actuarial calculations have been prepared in conformity with generally
   accepted actuarial principles and practices and with the Actuarial Standards of
   Practice issued by the Actuarial Standards Board.
e. This report should not be relied on for any purpose other than the purpose
   described in the primary communication.
f. The valuation was based upon information furnished by the municipality and
   MERS administrative staff concerning Retirement System benefits, financial
   transactions, active members, terminated members, retirees and beneficiaries.
   We checked for internal and year to year consistency, but did not otherwise audit
   the data. The MERS of Michigan Actuary Services Department is not
   responsible for the accuracy or completeness of the information provided to us
   for these calculations.




                                                                          Page 4 of 7
               City of Muskegon (6116) - Comments on the Investment Markets

The dramatic price declines across the world financial markets in 2008 led to increased
volatility unlike any experienced in decades. The following three years, 2009 - 2011, have
been less volatile and MERS’ portfolio recovered with average annual investment returns of
over 10%. While economic worries continue to haunt investors world-wide and market volatility
continues, equity markets have rebounded, particularly in the United States. At this time,
MERS maintains the 8% annual return assumption on investments in the belief that over the
long term this is achievable. However, MERS continuously monitors the investment return
assumption to make sure it is reasonable compared to long term expectations.

The actuarial value of assets (funding value), used to determine both your funded status and
your required employer contribution, is based on a 10-year smoothed value of assets. Only a
portion (four-tenths, for 2008 - 2011) of the 2008 investment market losses were recognized in
the December 31, 2011 actuarial valuation report. This reduces the volatility of the valuation
results, which affects your required employer contribution and actuarial funded percentage.

As of December 31, 2011 the actuarial value of assets is 121% of market value (up from 116%
in 2010). This means that meeting the actuarial assumption in the next few years will require
average annual market returns that exceed the 8% investment return assumption.

If the December 31, 2011 valuation results were based on market value on that date instead of
10-year smoothed funding value, the funded ratio for the City would be lower and employer
contributions would be higher. If the investment markets do not fully make up for the 2008
losses, employer contribution requirements may rise. MERS’ investment strategy employs
diversification using various asset categories (stocks, bonds, and to a smaller extent real
estate and private equity) to capture as much of the upside return as possible while managing
acceptable risk. If contribution increases do become necessary, MERS would work to impose
them incrementally.

Remember that only four-tenths of the 2008 market losses are reflected in the December 31,
2011 actuarial valuation report. As was true for past market downturns, MERS expects the
markets to continue to rebound. By the time the 2008 market losses would be fully recognized
(over the following 6 years), future market gains are expected to partly or fully offset 2008
market losses. This smoothing method is a powerful tool for reducing the volatility of your
required employer contributions. However, if the financial markets do not rebound, the result
would be gradual increases in your employer contribution requirement over the next 6 years
(as described above).




Comment on Actuarial Calculations -The estimate of your future employer contributions in this report are
based on the current actuarial assumptions used in the December 31, 2011 actuarial valuation. As always,
your required employer contribution rate changes every year, in response to demographic changes,
financial experience, benefit provision changes, etc, within your specific plan. The results of future
actuarial valuations will differ from the estimates, sometimes materially.
                                                                                                   Page 5 of 7
                     Muskegon, City of (6116) – Police Comm (Division 22)
           Employer Computed Contributions -- Based on 12/31/2011 Actuarial Valuation

                                                                      Current               Proposed
                                                                      Benefits               Benefits               Difference

        1. Benefits
           a) Benefit Formula                                    3.0% (80% max)         3.0% (75% max)         3.0% (75% max)
           b) Normal Retirement Age                                     55                     55
           c) Vesting Provision                                        V-10                   V-10
           d) Unreduced Retirement Condition                          53/25                  50/25                    50/25
           e) F55 Retirement Condition                                   -                      -
           f) F(N) Retirement Condition                                  -                      -
           g) Rule of X                                                  -                      -
           h) FAC Period                                             FAC - 3                FAC - 3
           i) RS50 Percent                                             50%                    50%
           j) DROP+                                                      -                      -
           k) D-2                                                   D-2 (25%)              D-2 (25%)
           l) Benefit E                                                  -                      -
           m) Benefit E1                                                 -                      -
           n) Benefit E2                                                 -                      -
           o) FAC Increase Factor / SLIF Load                           1%                   3.85%                   3.85%
           p) Member Contribution Rate                                6.00%                  6.00%
           q) Annuity Withdrawal Interest Rate                      Valuation              Valuation

        2. Member Counts
           a) Active                                                             15                     15                        0
           b) Retired                                                             3                      3                        0
           c) Vested Former Members                                               1                      1                        0
           d) Total                                                              19                     19                        0

        3. Annual Payroll                                         $   1,071,507         $     1,071,507         $             -

        4. Actuarial Value of Assets                              $   6,751,393         $     6,751,393         $             -

        5. Actuarial Accrued Liability
           a) Active                                              $   4,731,294         $     5,020,990         $       289,696
           b) Retired                                                 1,789,121               1,789,121                       0
           c) Vested Former Members                                     294,970                 294,970                       0
           d) Pending Refunds                                                 0                       0                       0
           e) Total                                               $   6,815,385         $     7,105,081         $       289,696

        6. Unfunded Accrued Liability (UAL) (5e - 4)              $       63,992        $      353,688         $        289,696

        7. Division Percent Funded (4 / 5e)                                 99.1 %                 95.0 %                     (4.1) %

        8. Cost as a Percentage of Payroll
           a) Employer Normal Cost                                          9.22 %                10.14 %                   0.92 %
           b) Amortization of UAL (over 20 years)                           0.64                   2.54                     1.90
           c) Total Long Term Employer Contribution (8a + 8b)               9.86                  12.68                     2.82
           d) Total Regular Employer Contribution $ (8c x 3)      $     105,648         $      135,864         $         30,216


The preceding Important Comments pages, Comments on the Investment Markets page, and concluding Impact of
Adopting Benefits page are incorporated by reference herein.

This report may be provided to other interested parties only in its entirety and only with the prior permission of MERS
and the municipality.

*   Each 1% increase in member contributions decreases the computed employer contribution 0.73%. If member contributions are
    increased to cover the long-term employer cost of the proposed benefits, the member rate would have to be increased 3.86%
    (2.82%/0.73) in addition to any change in the member contribution rate shown above. This increased rate would apply to all current
    members and future new members, and it is assumed that the number of active members in this division remains constant in the future.
    If the cost is to be covered by only current members, the member rate would have to be increased by 4.12% instead of the 3.86%. If the
    member rate is increased significantly, members may choose to retire earlier than assumed, and the required employer contribution may
    be affected.




                                                                                                                                  Page 6 of 7
                               Muskegon, City of (6116) – Police Comm (Division 22)
                                         Impact of Adopting the Benefits
Results reported on the previous page show how the December 31, 2011 annual actuarial report would have
been affected by a change in benefit provisions or member contributions. There are many ways to view the
change in costs. Different ways are shown in the table below (items 5-7 below), and compared with the previous
page's results (items 1-4 below).

                                       M easurements from the Annual Valuation Report

                                       1. Actuarial Accrued Liability
                                          a) Current Benefits                                 $   6,815,385
                                          b) Proposed Benefits                                    7,105,081
                                          c) Difference                                       $     289,696

                                       2. Division Funded Percent
                                          a) Current Benefits                                          99.1 %
                                          b) Proposed Benefits                                         95.0 %
                                          c) Difference                                                (4.1) %

                                       3. Long Term Employer Contribution as a % of Payroll
                                          of Current and Future Active Members
                                          a) Current Benefits                                          9.86 %
                                          b) Proposed Benefits                                        12.68 %
                                          c) Difference                                                2.82 %

                                       4. Long Term Employer Contribution as a % of Payroll
                                          of Current and Future Active Members Based on
                                          Members Paying of the New Benefit and a Constant
                                          Number of Active Members
                                          a) Current Benefits                                          6.00 %
                                          b) Proposed Benefits                                         9.86 %
                                          c) Difference                                                3.86 %



                                       Lump Sum Cost for Current Active Members

                                       5. Change in Actuarial Present Value of Future
                                          Employer Financed Benefits to all Current Active
                                          Members                                                   275,369



                                       Fund the Lump Sum Cost Difference as a % of the
                                       Future Payroll of Current Active Members*

                                                                                                       4.12 %
                                       6. Paid by the Employer

                                                                                                       4.12 %
                                       7. Paid by the Current Active Members




The preceding Important Comments pages and Comments on the Investment Markets page are incorporated by
reference herein.

This report may be provided to other interested parties only in its entirety and only with the prior permission of MERS
and the municipality.

Note: If member contributions are increased to cover the long-term employer cost of the proposed benefits, the member rate would have to be
increased by the amount shown in item 4c. This increased rate would apply to all current members and future new members, and it is
assumed that the number of active members in this division remains constant forever in the future. If the cost is to be covered by only current
members, the member rate would have to be increased by the amount in item 7. If the member rate is increased significantly, members may
choose to retire earlier than assumed, and the required employer contributions may be affected.

Note: The results of this valuation were developed using methods and assumptions consistent with those used in the most recent annual
actuarial valuation. This includes the assumption that only a portion of the active members retire during each year of retirement eligibility for
unreduced benefits. If members retire immediately at their earliest eligibility for unreduced retirement benefits, the contributions needed to
support the proposed benefit change may be larger than shown in the table above. Conversely, if members retire at older ages than
projected, the contribution needed to support the proposed benefit change may be smaller than shown in the table above.

*In instances where almost all members of the current population are fully vested, the probability of a refund of member contributions is close
to zero, therefore the difference between the employer rate and the member rate is small.
                                                                                                                                    Page 7 of 7

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