City Commission Packet 10-25-2011

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  CITY OF MUSKEGON
   CITY COMMISSION MEETING
                   OCTOBER 25, 2011
 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. Change in the Income Guidelines for CDBG Emergency Repair and
     HOME Weatherization. COMMUNITY & NEIGHBORHOOD SERVICES
  C. To Impose an Upfront Fee for the CDBG Emergency Repair Program.
     COMMUNITY & NEIGHBORHOOD SERVICES
  D. Moratorium on Fees for 2012 Vacant Buildings.      PLANNING &
     ECONOMIC DEVELOPMENT
  E. Donation Programs for 2011 Individual Income Tax Returns. INCOME
     TAX
  F. Extension of Temporary Employment Services Agreement.       CITY
     MANAGER
  G. Payrolling Services Agreement. CITY MANAGER
PUBLIC HEARINGS:
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
  A. Approval of Sale of City-Owned Home at 1201 Ransom. COMMUNITY &
            NEIGHBORHOOD SERVICES
       B. Approval of Sale of City Owned Home at 1581 Division. COMMUNITY &
          NEIGHBORHOOD SERVICES
       C. Vacant Building Registration Ordinance Amendment.                                        PLANNING &
          ECONOMIC DEVELOPMENT
       D. Transmittal of 6/30/11 Comprehensive Annual Financial Report.
          FINANCE
       E. First Quarter 2011-12 Budget Reforecast. FINANCE
       F. Consideration of 2012 COLA for Retirees. FINANCE
   ANY OTHER BUSINESS:
   PUBLIC PARTICIPATION:
   Reminder: Individuals who would like to address the City Commission shall do the following:
   Fill out a request to speak form attached to the agenda or located in the back of the room.
    Submit the form to the City Clerk.
   Be recognized by the Chair.
   Step forward to the microphone.
   State name and address.
   Limit of 3 minutes to address the Commission.
   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

   CLOSED SESSION:
   ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD: dial 7-1-1 and request a representative to dial (231) 724-6705.
Date:    October 25, 2011
To:      Honorable Mayor and City Commissioners
From:    Ann Marie Cummings, City Clerk
RE:      Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the October 10th
Commission Worksession Meeting and the October 11th City
Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                                  CITY OF MUSKEGON
                            CITY COMMISSION WORKSESSION
                                     October 10, 2011
                                        5:30 p.m.



                                       MINUTES

2001-72
Meeting was called to order at 5:30pm.
Present: Mayor Warmington, Vice-Mayor Gawron; Commissioners Spataro, Shepherd,
Wierengo, Wisneski.
Excused: Commissioner Carter


1.     Vacant Building Ordinance, Fees, and Conditional Fee Moratorium Extension.

The Commission discussed revisiting the Vacant Building Ordinance at a later date after the
Planning Commission has reviewed and recommended appropriate changes.

2.     Approval of Contractor for Construction of House at 1543 Hoyt.

Staff’s recommended choice for the Contractor for construction of house at 1543 Hoyt was
discussed and approved.

3.     2011 Parking Fine Adjustments.

Staff’s recommended increase in parking violation fines for Level I, II, and III was discussed and
approved.

4.     Five-Year Contract for Copiers/Printers.

Staff’s recommended choice for copiers was discussed and approved.


The meeting adjourned at 6:15pm.



                                                            ____________________________
                                                             Ann Marie Cummings, MMC
                                                                  City Clerk
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     OCTOBER 11, 2011
    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, October 11,
2011.
   Mayor Warmington opened the meeting with a prayer from Pastor Josh Dear
from the Lakeside Baptist Church after which the Commission and public recited
the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
  Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Lawrence Spataro, Sue Wierengo, Steve Wisneski, Chris Carter,
and Clara Shepherd, City Manager Bryon Mazade, City Attorney John Schrier,
and Deputy City Clerk Linda Potter.
2011-73 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the City Commission Meeting
that was held on Tuesday, September 27, 2011.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of minutes.
      B. Approval of Contractor for Construction of House at 1543 Hoyt.
         COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Jerry Kramer, 123 Fruitport
Road, Spring Lake, for the construction of the new home to be located at 1543
Hoyt for the cost of $117,075.
This new construction is being financed with Neighborhood Stabilization funds
from the Michigan State Housing Development Authority. After the new
construction is completed, the home will be marketed to sell to an eligible
homebuyer with an annual income less than 120 percent of the area median
income. The City obtained and demolished the original house at 1543 Hoyt with
Neighborhood Stabilization Program funds. The City received six bids as listed on
the spreadsheet.
FINANCIAL IMPACT: Complete funding for the project will be covered from the
Neighborhood Stabilization Program funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval for the Community and Neighborhood
Services office to develop a contract with Jerry Kramer and direct the Mayor
and Clerk to sign the contract.
      C. West Michigan Metropolitan Transportation Plan (WestPlan) Dues, FY
         2012 (October 1, 2011 – September 30, 2012). CITY MANAGER
SUMMARY OF REQUEST: To approve the City of Muskegon’s portion of the
WestPlan dues, payable to West Michigan Shoreline Regional Development
Commission.      This agency determines projects and distributes federal
transportation funds.
FINANCIAL IMPACT: $16,040.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve this request.
      D. Liquor License Request from Muskegon Liquors, Inc., 860 W. Sherman.
         CITY CLERK
SUMMARY OF REQUEST:          The Liquor Control Commission is seeking local
recommendation on a request from Muskegon Liquors, Inc. to transfer ownership
of 2011 SDD and SDM Licensed Business located at 860 W. Sherman from
Lighthouse Beverages, L.L.C.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending approval.
      E. Consideration of Bids for the Reconstruction of Dale Avenue, Peck to
         Clinton. ENGINEERING
SUMMARY OF REQUEST: Award the project to McCormick Sand Inc. out of Twin
Lake, MI. McCormick Sand Inc. submitted the lowest responsible bid of
$72,911.50.
FINANCIAL IMPACT: The construction cost of $72,911.50 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to McCormick Sand Inc.
      F. 2011 Parking Fine Adjustments. FINANCE
SUMMARY OF REQUEST: Parking violation fines were last adjusted in 2006. Staff
proposes increasing base fines (for Level I, II, III parking violations) by $2.50 to
bring us in line with other communities in the area and move all fines to whole
dollar amounts.
FINANCIAL IMPACT: Staff anticipates the revised parking fine structure will
generate $15,000 in revenue.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of the recommended increases in parking
fines effective immediately.
        G. Five-Year Contract for Copiers/Printers. FINANCE
SUMMARY OF REQUEST: The City’s current contract for copiers/printers expires in
December. Staff recently conducted a review process to identify the company
best suited to meet the City’s document management needs for the next five-
years. This process included in-depth interviews with six companies conducted
by a panel of City staff. Companies were ranked by the panel prior to the
opening of price proposals. Rather than simply focusing on replacing the
current equipment fleet at the lowest cost, we focused instead on finding the
company that could provide the best overall value to the City in terms of
analyzing our needs and recommending cost-effective and flexible document
management solutions for our rapidly changing organization.
Following is a summary of the results of this process, including comparative
pricing for replacement of the current equipment fleet. Staff is recommending
that Applied Imaging be selected and that staff be authorized to work with
them to modify and optimize the copier and printer equipment placed at the
City.
Company           Presentation   Per Copy      Per Copy       Est. Annual   Est. Annual   TOTAL
                    Ranking        B&W           Color        Cost B&W      Cost Color
                                                               1,100,000     100,000

Applied Imaging       1*         $0.03540       $0.05900       $38,940        $5,900      $44,840

Adams Remco           2**        $0.02950       $0.08600       $32,450        $8,600      $41,050

Canon                 3***       $0.03403       $0.04900       $37,433        $4,900      $42,333

Office Machines   Not in Top 3   $0.05000       $0.06000       $55,000        $6,000      $61,000

CopyTech          Not in Top 3   $0.03659       $0.05000       $40,249        $5,000      $45,249

MOS               Not in Top 3   $0.02890       $0.05500       $31,790        $5,500      $37,290

*5 – 1st place votes; 2 – 2nd place votes; 2 – 3rd place votes
**2 – 1st place votes; 4 – 2nd place votes; 1 – 3rd place votes
***2 – 1st place votes; 2 – 2nd place votes; 3 – 3rd place votes

FINANCIAL IMPACT: Staff anticipates the new contract will save $40,000 per
year over current costs. In large part this is due to lower copy/printing volumes
and reduced equipment needs as staff has downsized and technology has
made document scanning/distribution more pervasive.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into a five-year agreement
with Applied Imaging.
      H. Selection of Vinyl Siding Supplier for Fiscal Year 2011 – 2012.
         COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the Community and Neighborhood Services
department’s selection of the Vinyl Siding Supplier for 2011-2012 fiscal year.
After reviewing all bids, the department selected the bid from Keene Lumber,
located at 346 W. Laketon Avenue, Muskegon, MI, for the price of $48 per
building square for white and $51.50 per square for color. The City received four
bids.
FINANCIAL IMPACT: Funding will be disbursed from the 2011 – 2012 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
      I. Selection of Vinyl Siding Installer for Fiscal Year 2011 – 2012.
         COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve Community and Neighborhood Services to
sign a contract with Mark Tucker Construction, 9121 Holton Road, Holton, MI to
install vinyl siding at an agreed price of $42 per building square for Vinyl Siding
Program’s 2011-2012 fiscal year. Last year’s price was $50 per building square.
The City received three bids.
FINANCIAL IMPACT: Funding will be disbursed from the 2011 – 2012 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
Motion by Commissioner Carter, second by Commissioner Wierengo to approve
the Consent Agenda as read.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
           and Spataro
            Nays: None
MOTION PASSES
2011-74 PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate for Fleet
         Engineers. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Fleet
Engineers, 1981 Port City Blvd., has requested the issuance of an Industrial
Facilities Tax Exemption Certificate. The company plans on making investments
of $1,416,550 in personal property improvements and $650,500 in real property
improvements. Under the City’s IFT policy, they are eligible for a 12-year
abatement on real property and a 7-year abatement on personal property.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of 12 years on real property and 7
years on personal property.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from Mr. Wes Eklund, 41 Seminole Road,
President of Fleet Engineers.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to close the
Public Hearing and approve the request for an Industrial Facilities Exemption
Certificate for a term of 12 years on real property and 7 years on personal
property for Fleet Engineers.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and
           Warmington
            Nays: None
MOTION PASSES
2011-75 NEW BUSINESS:
      A. Youth Basketball League and Open Gym Proposal – Muskegon Public
         Schools. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon contracted with the Muskegon
Public Schools for the 2010-2011 school year to provide management of the
Youth Basketball League and Open Gym & Swim (formerly supervised by the
City Leisure Services Department). The program was successful and the Schools
would like to manage the program for the 2011-2012 school year. In fact, they
are prepared to start the program this October. The Commission is requested to
approve the proposal and authorize staff to enter into an agreement with the
Schools for oversight of the basketball program and the Open Gym program.
FINANCIAL IMPACT: The actual program cost was greater than expected in
2010-2011, particularly due to the costs of keeping the pool available for Open
Swim (due to State requirements for a pool custodian, cleaning locker rooms,
and lifeguards). However, the Schools can maintain the 2010-2011 costs of
$18,500, if there is no Open Swim.
BUDGET ACTION REQUIRED: Funds are available through the Leisure Services
budget.
STAFF RECOMMENDATION: To approve the “Youth Basketball League and Open
Gym Proposal” and authorize staff to enter into a formal agreement with the
Schools.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the Youth Basketball League and Open Gym Proposal as outlined
between City of Muskegon and Muskegon Public Schools.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Shepherd, Spataro, Warmington,
           and Wierengo
           Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Various comments were heard from the Commission.
2011-76 CLOSED SESSION: To Discuss Pending Litigation.
Motion by Commissioner Carter, second by Commissioner Shepherd to go into
Closed Session to discuss pending litigation.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Wisneski
           Nays: None
MOTION PASSES
Motion by Commissioner Shepherd, second by Commissioner Carter to come
out of Closed Session.
VOTE: All Ayes.
ADJOURNMENT: The City Commission Meeting adjourned at 6:10 p.m.


                                         Respectfully submitted,




                                         Ann Marie Cummings, MMC
                                         City Clerk
Commission Meeting Date:         October 25, 2011


Date:      October 6, 2011

To:        Honorable Mayor and City Commission

From:      Community and Neighborhood Services Department

Re:      Change in the Income Guidelines for CDBG Emergency Repair
         and HOME Weatherization
____________________________________________________________

SUMMARY OF REQUEST: To approve Community and Neighborhood
Services to change the Income Guidelines for all CDBG programs and HOME
Weatherization programs to 60% Area Median Income (AMI).

CDBG and HOME Weatherization programs are similar in regard to repairs
provided with grant funds. It will benefit if staff provides a uniform income
calculation range for each of our programs: Emergency Repair, Weatherization
and Vinyl Siding.

FINANCIAL IMPACT: We have moved all senior head of households to the
Weatherization program in order to accommodate any additional families
between 50 – 60% AMI.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve request.

COMMITTEE RECOMMENDATION: The proposal has already been approved
by the Citizen’s District Council at their October 4, 2011 meeting.
Commission Meeting Date:          October 25, 2011


Date:      October 6, 2011

To:        Honorable Mayor and City Commission

From:      Community and Neighborhood Services Department

Re:      To Impose an Upfront Fee for the CDBG Emergency Repair
         Program
____________________________________________________________

SUMMARY OF REQUEST: To approve Community and Neighborhood
Services to charge an upfront fee of $250 for all Emergency Repair Program
recipients who’s Area Median Income (AMI) is above 50% up to and including
60% AMI.

We can assist our underserved families in need of assistance if we increase the
income requirement to 60% AMI. The additional number of families that we
service between 50 – 60% AMI will contribute to our funding pot by $250 per
family.

FINANCIAL IMPACT: This will produce program income for the CDBG
Emergency Repair program.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve request.

COMMITTEE RECOMMENDATION: The proposal has already been approved
by the Citizen’s District Council at their October 4, 2011 meeting.
         Commission Meeting Date: October 25, 2011




Date:       October 14, 2011
To:         Honorable Mayor & City Commission
From:       Planning & Economic Development Department
RE:         Moratorium on fees for 2012 Vacant Buildings


SUMMARY OF REQUEST: Request to approve a moratorium on fees
charged to owners of vacant buildings that are entering their fourth year
billing cycle in 2012. Eligibility requirements for the moratorium of fees
charged are proposed with some minor changes to criteria three, but
intended to apply only to buildings in their fourth year billing cycle.
Waivers would be determined based on the criteria included on the
attached staff memo.


FINANCIAL IMPACT: Exact amount unknown but should be minimal.


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION: Staff recommends approval of a fee
moratorium for vacant building invoices meeting the approved criteria.


COMMITTEE RECOMMENDATION: None
             Vacant Building Registration Moratorium on 4th year fees.

A proposed billing moratorium could be initiated for the year of 2012, impacting all
structures that are about to enter their fourth vacant building billing cycle. This
moratorium would apply only to structures that meet certain criteria to insure that the
structure is being properly maintained and the owners are current on all their
responsibilities to the various city departments.

The criteria staff feels a vacant building would have to meet to qualify for a moratorium
of fee are:

   1.      All taxes & fees, such as mowing charges, vacant building registration,
           landlord registrations, business registrations and any other applicable fees,
           must be fully paid and current.
   2.      All city supplied utilities for the property must be fully paid.
   3.      There were no more than 2 environmental letters sent to the address with no
           or work being performed at the address in the vacancy years in question.
   4.      The building owner can demonstrate that they have made recent investments
           in the vacant building during the vacancy period or in the case of a building
           in good condition, they have continued to provide the necessary financial
           support for the building to be in usable and move-in condition.
   5.      The property has been listed during the vacancy period and is still currently
           listed for sale with a professional realty firm.

Due to the complexities of the overall program, city staff would utilize our current
appeal process to administer the moratorium and the owners that feel they qualify would
be required to apply for the moratorium after being billed. To make the public aware of
this opportunity, we would have to mail a notice to each qualified owner informing them
of the moratorium and its requirements to qualify. If the owner felt they could meet the
criteria, they would apply with supporting documentation, if they do not meet the criteria
we would hope they would not apply for it and consume staff time with the reviews.

Because of the criteria that must be met and the large number of structures that we will
be billing, staff would not be able to review all the invoices prior to billing. We simply
do not know if all of the structures can meet the criteria and we do not have the staff to
make those determinations in advance.

Using the appeal process, staff can make the determination by requiring the owner to
provide some of the above listed information and this will cut down on staff time spent.
Even so, this will substantially increase the amount of time staff must spend processing
paperwork for this program.
                         AGENDA ITEM NO. ___________________

                   CITY COMMISSION MEETING ____________________



TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       October 19, 2011

RE:         Extension of Temporary Employment Services Agreement



SUMMARY OF REQUEST:
To approve a one-year contract extension with Beacon Services, Inc. for temporary employment
services. The current agreement expires at the end of the year and has an option for a one-year
extension.



FINANCIAL IMPACT:
Costs for services are budgeted by individual departments.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the agreement with Beacon Services, Inc. and authorize the City Manager and City
Clerk to execute it.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\EXT TMP EMP SRVCS AGRMNT 101911
                        CITY OF MUSKEGON
 ONE YEAR EXTENSION CONTRACT FOR TEMPORARY EMPLOYMENT SERVICES

       This Agreement is effective on this _28_th day of September, 2011, between City of
Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, MI 49443 ("City"),
and, Beacon Services, Inc., of 4595 Broadmoor, SE Suite 180, Grand Rapids, MI 49512
(“Contractor”), with reference to the following facts:
                                               Background

         A.      City requested sealed bid proposals from temporary staffing service providers to
provide temporary employees to City within the Public Works Division, Parks, Cemetery and
Highway Departments, the Leisure Services Department as well as to provide general office and
clerical services, and other areas within the City as deemed necessary by City.

        B.      Contractor submitted a bid proposal to provide contract help for temporary work for
the City, on an as needed basis, in the named departments, general office and clerical services, and
other areas as deemed necessary by City.

       NOW, THEREFORE, for valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the parties agree as follows:

        1.       Inclusion of Additional Agreements. This Agreement includes, but may not be
limited to the following:

                a.       Invitations to bid and instructions to bidders;

               b.      All descriptions of services not included in this Agreement but used in
connection with the bidding process;

              c.      The bid proposal and any requirement included with or attached to the bid
documents and this Agreement; and

                d.       Any specifications used in connection with this Agreement.

This Agreement, together with the documents described above, constitutes the Agreement between
the parties and shall be considered as part of the Agreement as if attached or repeated herein.

In the event that there are inconsistencies within the Agreement, the Contractor shall immediately
notify the City, in writing, for a determination, interpretation, clarification and/or prioritization of the
inconsistencies.

       2.     Services. Contractor shall provide the following services relating to providing
temporary employees for any city department.

              a.      Pre-employment Selection. Subsequent to City identifying a position for
temporary employment, Contractor to review the credentials of each employee assigned to the City to
confirm employee’s ability to accomplish the essential functions of the position for which they will


                                                     1
be assigned. City shall also have the right to review each employee’s credentials and verify the
employee’s suitability for the assigned position. The City shall have the right to reject use of an
employee in the event City finds the employee unfit for the position assigned.

               b.    Background Screening. Contractor shall perform an initial background
check on each employee assigned to the City. The City may perform additional background checks
as necessary.

                c.     Drug Screening Program. Contractor shall perform 5-panel urine drug
screens on all employees.

       3.      Equipment. The City shall supply all safety equipment mandated for its employees
while on assignment with the City.

       4.       Expenses. Contractor shall be responsible to pay for all expenses incurred by
Contractor related to the performance of its duties under this Agreement and for all compensation
owed to its workers.

       5.      Contract Price. City agrees to pay Contractor, in full consideration for the complete
performance of Contractor’s obligations under this Agreement, the amount set forth in the
Contractor’s bid proposal and as follows:

                Mark-up for Playground Leaders, Assistant Park Supervisor,
                Laborers, and Park Rangers…………………………………38.13%

                Mark-up for Lifeguards and Beach Maintenance Worker…..45.10%

                Office and Professional Temporaries……………………….36.60%

                Fire Fighters…………………………………………………50.0%

                Discount to City for ACH payment per contractor’s terms… 1%

        The City agrees to accept the cost of any increase in statutory tax or insurance, i.e., FICA,
Medicare, FUI/FUTA, SUI/SUTA and Workers’ Compensation costs. Similarly, any savings
resulting from any decrease in cost of the specified statutory tax or insurance will be credited to the
City should any of those taxes or insurance costs go down.

The above rates are modified by the Payrolling Services Agreement.

        6.      Assignments. Work assignments are determined on an as-needed basis.

        7.      Work Orders. City shall submit work orders on an as-needed basis.

        8.     Payment.         Requests for payment shall be submitted on a detailed invoice to the
City on a weekly basis.

      9.       Specific Reservations. City reserves the right to discontinue its use of temporary
employees as it determines appropriate.


                                                    2
        10.     Terms and Termination. This Agreement shall be effective beginning January 1,
2012, and shall remain in full force and effect through December 31, 2012, with an option to renew
for an additional term of one year, if mutually agreed upon by both parties as memorialized in a
written and signed agreement.

        11.     Commencement and Damages.

             a.       Commencement. Contractor shall commence performance under this
Agreement upon its execution.

          Contractor’s failure to fill available positions for lifeguards and park rangers needed on or
after Memorial Day will be considered a violation and breach of this agreement. In addition, if the
City submits a work order indicating that a position absolutely must be filled by a specific date and
said work order is submitted seven (7) days in advance of the specified date, the Contractor’s failure
to fill said position is a violation and breach of this Agreement. In the event of such a default of the
Agreement, Contractor shall pay to the City the sum of $200 for each and every calendar day that the
Contractor is in default. The amount of damages shall not be construed as a penalty, but to ensure
the City’s ability to provide substituted services and costs associated with that default. City shall
determine its damages after conducting an investigation.

                b.      The full amount of damages incurred shall be deducted from payment to
Contractor.

        The City shall notify Contractor of each violation of the Agreement reported to City. It shall
be the duty of Contractor to remedy the cause of the complaint. Failure of Contractor to take
remedial measures shall be considered a breach of the Agreement, and for the purpose of computing
damages under the provisions of this section, it is agreed that City may deduct from payments due or
to become due to Contractor the City’s cost to remedy or substitute performance.

        Failure to perform pursuant to this Agreement for a period in excess of three (3) consecutive,
scheduled, working days, or failure for a similar period, to perform in the manner required, and
provided such failure is not a result of war, insurrection, riots, or acts of God, the City may, at its
option and after written notice to Contractor, utilize any or all of Contractor’s equipment used in
performance of this Agreement until such time the matter is resolved and the Contractor is
performing under the terms of the Agreement.

        Any and all expenses incurred by City during such time may be deducted from payments due
or to become due to Contractor.

         Should Contractor be unable to resume performance at the close of ten (10) calendar days, all
liability of the City under this Agreement shall cease and City shall be free to negotiate with other
contractors for the performance of work. Any contract thereby entered into with another contractor
shall not release Contractor from liability to City for breach of this Agreement.

               c.       Appeal. The City’s determination regarding damages shall be final and
binding on both parties, unless appealed, in writing to the City Manager or his designee within ten
(10) working days after notice. The City Manager or his designee shall grant Contractor an informal
hearing upon such request. The decision of the City Manager shall be final and binding.


                                                   3
                 d.      Waiver. City may waive all or any portion of damages without prejudicing
its rights under this Agreement.
         12.     Insurance and Indemnity.

                a.      Hold Harmless Agreements. To the fullest extent permitted by law,
Contractor agrees to defend, pay on behalf of, indemnify, and hold harmless the City, its elected and
appointed officials, employees, volunteers, and others working on behalf of the City against any and
all claims, demands, suits, or losses, including all costs connected therewith, and for any damages
which may be asserted, claimed or recovered against or from the City, its elected and appointed
officials, employees, volunteers, or others working on behalf of the City, arising out of or is any way
connected or associated with this contract. The obligation to defend and hold harmless extends to
City's employees, agents, subcontractors, assigns and successors.

                b.       City Insurance Requirement. Contractor shall not commence work under
this contract until obtaining the insurance required under this paragraph. All coverages shall be with
insurance companies licensed and admitted to do business in the State of Michigan and Best Rated A
VIII. All coverage shall be with insurance carriers acceptable to City.

               c.      Workers' Compensation Insurance. During the life of this contract
Contractor shall procure and maintain Workers' Compensation Insurance in an amount not less than
$1,000,000, including Employers Liability Coverage, in accordance with all applicable statutes of the
State of Michigan.

                d.     Vehicle Liability Insurance. During the life of this contract, Contractor
shall procure and maintain vehicle liability insurance in accordance with all applicable statutes of the
State of Michigan.

                 e.      Commercial General Liability Insurance. During the life of this contract,
Contractor shall procure and maintain commercial general liability insurance on an "Occurrence
Basis" with limits of liability not less than $1,000,000 per occurrence and/or aggregate combined
single limit, Personal Injury, Bodily Injury and Property Damage. Coverage shall include the
following extensions: (A) Contractual Liability; (B) Products and Completed Operations; (C)
Independent Contractors Coverage; (D) Broad Form General Liability Extensions or equivalent; (E)
Deletion of all Explosion, Collapse and Underground (SCU) exclusions, if applicable.

                 f.     Additional Insured. Commercial General Liability Insurance, as described
above, shall include an endorsement stating the following shall be "Additional Insureds": The City,
all elected and appointed officials, all employees and volunteers, all boards, commissions and/or
authorities and board members, including employees and volunteers thereof. The endorsement
adding City as additional insured shall read exactly as follows: "The City of Muskegon is hereby
added as an additional insured…"

                g.      Cancellation Notice. Workers' Compensation Insurance and Commercial
General Liability Insurance, as described above, shall include an endorsement stating the following:
"It is understood and agreed that Thirty (30) days’ Advance Written Notice of Cancellation,
Non-Renewal, Reduction and/or Material Change shall be sent to: CITY OF MUSKEGON CITY
MANAGER.



                                                   4
                 h.     Proof of Insurance Coverage. Contractor shall provide the City at the time
the contracts are returned for execution, certificates and policies endorsing the City as additional
insured as listed below:

                        i.      Two (2) copies of Certificate of Insurance for Workers' Compensation
                                Insurance, if applicable;

                        ii.     Two (2) copies of Certificate of Insurance for Commercial General
                                Liability Insurance; and

                        iii.    If so requested, Certified Copies of all policies mentioned above will
                                be furnished.

                 i.     If any of the above coverages expire during the term of this contract,
Contractor shall deliver renewal certificates and/or policies to City at least ten (10) days prior to the
expiration date.

        13.      Income Tax Withholding. Contractor shall withhold income taxes from each
employee who is subject to such withholding, and pay such tax in accordance with the City of
Muskegon Income Tax Ordinance and all applicable laws associated with that ordinance. Contractor
shall require the same from each subcontractor, consultant or vendor used in the performance of his
duties and obligations in this Agreement. City reserves the right to withhold payments otherwise due
to Contractor to assure compliance with this Agreement or to cure such noncompliance.

        14.     General Provisions.

                 a.      Notices. Any notice that either party may give or is required to give under
this Agreement shall be in writing, and, if mailed, shall be effective on the day it is delivered to the
other party at the other party's address set forth in this Agreement or at any other address that the
other party provides in writing. Notices given in person are effective on the day they are given.

               b.     Governing Law. This Agreement is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with, the laws of the State of Michigan.

                 c.      Assignment or Delegation. Neither party shall assign all nor any portion of
its rights and obligations contained in this Agreement without the express prior written approval of
the other party, which approval may be withheld in the other party's sole discretion.

                d.     Entire Agreement. This Agreement shall constitute the entire agreement,
and shall supersede any other Agreements, written or oral, that may have been made or entered into,
by, and between the parties with respect to the subject matter of this Agreement, and shall not be
modified or amended except in a subsequent writing signed by the party against whom enforcement
is sought.

                e.      Binding Effect. This Agreement shall be binding upon, and inure to the
benefit of, and be enforceable by, the parties and their respective legal representatives, permitted
successors, and assigns.




                                                    5
                 f.     Non-Waiver. No waiver by any party of any provision of this Agreement
shall constitute a waiver by such party of such provision on any other occasion or a waiver by such
party of any other provision of this Agreement.

                g.      Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions of this Agreement shall not in any way be impaired or
affected.

                h.      Venue. The parties agree that, for purposes of any dispute in connection with
this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter
jurisdiction and venue.

                i.      Survival. All representations, warranties, and covenants in this Agreement
shall survive the signing of this Agreement.

        City and Contractor have executed this Agreement on the date written next to their signatures
to be effective according to the term(s) stated in this document.


                                              City –

       Date: ___________, 2011                CITY OF MUSKEGON

                                              By:_________________________________
                                                Bryon L. Mazade
                                                City Manager


                                              And:________________________________
                                                 Ann Marie Cummings, MMC
                                                 City Clerk


                                              Contractor –

       Date: ___________, 2011                By:___________________________________
                                                Mark D, Zacha

                                              Its: President




                                                  6
                         AGENDA ITEM NO. ___________________

                  CITY COMMISSION MEETING ____________________



TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       October 19, 2011, 2011

RE:         Payrolling Services Agreement



SUMMARY OF REQUEST:
To approve an agreement for Beacon Services, Inc. to provide payrolling services to the City.
This enables Beacon to be the employer of record for employees assigned to the City.



FINANCIAL IMPACT:
Costs are budgeted by individual departments.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the attached agreement with Beacon Services, Inc. and authorize the City Manager
to execute it.



COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\PAYROLLING SRVCS AGRMNT 101911
                                     BEACON SERVICES, INC.

                       CLIENT PAYROLLING SERVICES AGREEMENT

This Payrolling Services Agreement is made by and entered this day _30thh_ of, September
2011 between Beacon Services, Inc., (herein called “Beacon”) with its headquarters located at
4595 Broadmoor, SE, Suite 180, Grand Rapids, MI 49512 and the City of Muskegon (herein
called “CLIENT”) located at 933 Terrace, Muskegon, MI 49443.

Recitals
        WHEREAS, Beacon is engaged to provide payrolling services as the employer of record
for the Payrolled Employees sourced by CLIENT.

       WHEREAS, CLIENT desires to engage Beacon to provide such services:

       NOW, THEREFORE, in consideration of the promises, and of the mutual covenants
hereinafter set forth, and intending to legally bound hereby, the parties hereto agree as follows:

1. Beacon Services, Inc., Responsibilities
1.1 Employer of Record Service
Beacon agrees to assume full responsibility for paying, withholding, transmitting payroll taxes;
making unemployment contributions; and handling unemployment and worker’s compensation
claims involving assigned employees.

1.2 Insurance
Certificate of Insurance is available upon Client’s request.
        Statutory Worker’s Compensation Insurance
        Commercial Liability Insurance
        Professional Liability
        Crime insurance in amounts deemed sufficient

2. Client Responsibilities
2.1 Timecard Authorization Terms and Conditions
By approving employee timecards, the following certifications are made:
       CLIENT understands that the employee is the general employee of Beacon on
       assignment with CLIENT, and performed services at CLIENT’s direction.
       The hours worked by the employee are correct.
       The work was performed in a satisfactory manner.
       CLIENT did not entrust Beacon employee with cash, negotiable instruments, or other
       valuables, or unintended premises. (waived in writing for certain positions)
       CLIENT did not permit Beacon employee to operate machinery (except standard office
       equipment) or motor vehicles without prior written consent of Beacon.
       CLIENT acknowledges that insurance carried by Beacon does not cover loss or damage
       caused by employees operating client’s owned or leased motor vehicles and that client
       shall be fully liable and responsible for any claims involving any damage including but
       not limited to bodily injury, property damage, fire, theft, collision, cargo damage, or public
 4595 Broadmoor, SE Suite 180, Grand Rapids, MI 49512 ·Tel 616-698-7979 · Fax 616-698-0838           1
                                   www.beaconweb.com
       liability arising from the use by a Beacon employee of such vehicle including the defense
       of any such claims.

2.2 Limitations on Employee Activities
Unless CLIENT has obtained prior written consent from Beacon, the client shall not allow
employee to perform any of the following job related activities listed below:
              Driving an automobile or other motor vehicle;
              Operating machinery other than office equipment;
              Handling cash, securities or other valuables;
              Working on boats near or on the water;
              International Travel

If prior written consent is not obtained, CLIENT agrees to waive all rights to make a claim
against Beacon, and to relieve Beacon from all liability and responsibility for any damage, loss,
or expense which CLIENT incurs as a result of the employee engaging in such activities.

2.3 Safety
Safety regulations are as follows:
       CLIENT will notify Beacon should an employee’s job classification change
       CLIENT shall not expose any Beacon employees to hazardous conditions and not
       violate any OSHA or safety law, rule or regulation whether federal, state or local.
       CLIENT will provide safety, hazardous communication and operational instructions in the
       same manner as all employees located at your site are required to receive.
       Employee use of alcoholic beverages or drugs is strictly forbidden. CLIENT will notify
       Beacon immediately if an employee appears intoxicated or impaired.
       CLIENT will provide Beacon employees with all appropriate safety equipment if required.
       CLIENT will notify Beacon immediately in the event of an accident or injury and will
       complete the Beacon Accident Investigation forms as requested.

3. Billing
3.1 Rates
CLIENT designates the pay rate to the employee on the Payroll Staffing Request form. The
mark up above the pay rate includes applicable payroll taxes, FICA, Medicare, FUTA, and
SUTA taxes and insurances including workers’ compensation insurance.
             Mark up %:             34% for clerical positions/management positions
             Drug screening:        $25
             Background checks: $69

These rates are effective through 01/01/13 and may be adjusted, as Worker’s Compensation and
SUTA rates may change at the first of the year.

3.2 Establishing Your Account
       A completed credit application is required prior to the start of service.
       Beacon will run a credit report for verification of your company’s sound credit history.
       Beacon’s preferred method of payment is electronically. We will assist in setting this
       process up for weekly payments.



3.3 Invoicing
Weekly Beacon will invoice CLIENT via email for the total hours on the employee’s timecard in
accordance with price and payment terms set forth in this agreement.

 4595 Broadmoor, SE Suite 180, Grand Rapids, MI 49512 ·Tel 616-698-7979 · Fax 616-698-0838          2
                                   www.beaconweb.com
3.4 Payment
       Payment terms are Due Upon Receipt. Beacon offers a discount of 1% on all invoices paid the
       same week by electronic ACH.
       Electronic and ACH payments should be scheduled for the same week as Beacon’s employee
       is paid for the prior week(s).
       Service charge of 1½% per month is charged on past due amounts.

5. General Provisions
This agreement shall be governed by Michigan law. If suit is brought on any claim relating to
this agreement, such suit shall be filed and prosecuted in Muskegon, Michigan.

If any party commences an action or proceeding to enforce or interpret any of the provisions of
this agreement, the prevailing party shall be awarded costs and reasonable attorneys’ fees
incurred in such action or proceeding.

This agreement constitutes the entire agreement between the parties pertaining to the subject
matter herein and supersedes any and all prior or contemporaneous agreements and
representations. This agreement may be modified only in a writing signed by the parties.

6. Term of Agreement
The term of this agreement will commence on the date signed by both CLIENT and Beacon. CLIENT
may end an employee assignment with adequate notice for Beacon to prepare final paychecks.
Beacon reserves the right to terminate the contract immediately in cases of non-payment.

Beacon requests you treat these terms as confidential.

Agreed and Accepted:
CLIENT                                                   Beacon Services, Inc.
Name:___________________________                         Name:______________________
Title______________________________                      Title:________________________
Date:_____________________________                       Date:________________________




 4595 Broadmoor, SE Suite 180, Grand Rapids, MI 49512 ·Tel 616-698-7979 · Fax 616-698-0838        3
                                   www.beaconweb.com
        Commission Meeting Date:            October 25, 2011

Date:      October 14, 2011
To:        Honorable Mayor & City Commission
From:      Community and Neighborhood Services Department
RE:        Approval of Sale of City-owned home at 1201 Ransom


SUMMARY OF REQUEST: To approve the attached resolution and instruct
the Community and Neighborhood Services department to complete the sales
transaction between Mr. Andre Coffee for the totally rehabilitated home at
1201 Ransom Street, which is part of the City’s Neighborhood Stabilization
Program (NSP) through the Michigan State Housing Development Authority
Office of Community Development. Mr. Coffee’s purchase price is $61,000.
This historic three-bedroom, 2-1/2 bath home was previously foreclosed.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of vacant houses through NSP to sustain our current investments
to stabilize and revitalize neighborhoods.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
COMMITTEE RECOMMENDATION: None.
                   MUSKEGON CITY COMMISSION



        RESOLUTION TO APPROVE THE PURCHASE OF
  CURRENTLY CITY-OWNED PROPERTY AT 1201 RANSOM STREET


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 1201 Ransom Street to Andre L. Coffee of 605 Glen
Oaks Drive, Muskegon. Mr. Coffee will purchase the house as an owner-
occupied structure.

Adopted this 25th day of October, 2011.

Ayes:

Nays:


                          By ______________________________
                             Stephen J. Warmington, Mayor


                          By ______________________________
                             Ann Marie Cummings, MMC City Clerk
AM_Resolution
        Commission Meeting Date:            October 25, 2011

Date:      October 18, 2011
To:        Honorable Mayor & City Commission
From:      Community and Neighborhood Services Department
RE:        Approval of Sale of City-owned home at 1581 Division


SUMMARY OF REQUEST: To approve the attached resolution and instruct
the Community and Neighborhood Services department to complete the sales
transaction between Mr. Robert A. Mathis for the totally rehabilitated home at
1581 Division Street, which is part of the City’s HOME Infill Program through
the U. S. Department of Housing and Urban Development. Mr. Mathis’
purchase price is $62,700.
This beautiful four-bedroom, 3-bath home was bought through HUD’s $1
program.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of vacant houses through the HOME program to sustain our
current investments to stabilize and revitalize neighborhoods.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
COMMITTEE RECOMMENDATION: None.
                   MUSKEGON CITY COMMISSION



        RESOLUTION TO APPROVE THE PURCHASE OF
  CURRENTLY CITY-OWNED PROPERTY AT 1581 DIVISION STREET


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 1581 Division Street to Robert A. Mathis of 1581
Division Street, Muskegon. Mr. Mathis will purchase the house as an
owner-occupied structure.

Adopted this 25th day of October, 2011.

Ayes:

Nays:


                          By ______________________________
                             Stephen J. Warmington, Mayor


                          By ______________________________
                             Ann Marie Cummings, MMC City Clerk
AM_Resolution
                Commission Meeting Date: October 25, 2011



Date:          October 14, 2011
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development
RE:            Vacant Building Registration Ordinance Amendment


SUMMARY OF REQUEST:

Request to amend the Code of Ordinances Chapter 10, Section 107, Annual Registration of
Vacant Buildings and Registration Fees, for the purposes of adding a two-year waiver for
properties that are in probate, being actively rehabbed so it may be occupied, or while a home
appears to be occupied but is vacant by definition with proof of each being supplied by the
property owner and the property may not be cited by any city department and all fees owed to
the city are paid.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends amendment of Chapter 10, Section 107, Annual Registration of Vacant
Buildings and Registration Fees, for the purposes stated.

COMMITTEE RECOMMENDATION:
None




10/20/11                                                                                     1
       Vacant Building Ordinance changes


1. (6) Two-year waiver.
              (iii.)   Upon application by the homeowner(s) or a legal
                       representative(s), the committee may grant a renewable
                       two-year waiver of the registration fee. To be eligible for a
                       two-year waiver of fee, satisfactory proof that the structure
                       will only be temporarily vacant due to property being in
                       probate court, being actively rehabbed to city code so it
                       may become occupied or the structure is in good repair
                       and has the presence that the structure is not vacant (per
                       zoning code for allowable uses), and free of any
                       enforcement actions by city departments. Should the
                       structure or property not be properly maintained or in
                       violation of city code, the waiver may be revoked by the
                       appeal committee.
Sec. 10-107. Annual registration of vacant buildings and registration fees.
(a)   Purpose. The purpose of this section requiring the registration of all vacant
      buildings, including dwellings that are subject to Chapter 10 as referenced below,
      and the payment of registration fees is to assist the city government, particularly
      the Department of Public Safety (DPS) and Planning Departments in protecting
      the public health, safety and welfare, to monitor the number of vacant buildings in
      the city, to assess the effects of the condition of those buildings on nearby
      businesses and the neighborhoods in which they are located, particularly in light
      of fire safety hazards and unlawful, temporary occupancy by transients, including
      illicit drug users and traffickers, and to require of the owners of such vacant
      buildings their registration and the payment of related fees, and to promote
      substantial efforts to rehabilitate such vacant buildings. The provisions of this
      section are applicable to the owners of such vacant buildings as set forth herein
      and are in addition to and not in lieu of any and all other applicable provisions of
      this chapter, the health and sanitation code, and any other applicable provisions
      of the Muskegon City Code.
(b)   Definitions and applicability; registration statement and fees.
      (1)    Definitions. For purposes of this section, the following words and phrases
             shall have the meanings respectively ascribed to them as follows:
             (A)     Boarded: A building or structure subject to the provisions of this
                     section shall be deemed to be “boarded” if in place of one or more
                     exterior doors, other than a storm door, or of one or more
                     windows, there is a sheet or sheets of plywood or similar material
                     covering the space for such door or window.
             (B)     Exterior maintenance and major systems: The phrase “exterior
                     maintenance and major systems” shall mean the safe and lawful
                     maintenance of the façade, windows, doors, roof, and other parts
                     of the exterior of the building and the maintenance of its major
                     systems consisting of the roof, the electrical and plumbing
                     systems, the water supply system, the sewer system, and the
                     sidewalk, drive-way, if any, area of the lot, as applicable and as
                     enforced by the DPS, particularly in connection with subsection
                     10-82 (inspection of unoccupied building) and 10-101 (abatement
                     of dangerous buildings) of this section of this code.
             (C)     Occupied: Any building or structure shall be deemed to be
                     occupied if one or more persons actually conducts a lawful
                     business or resides in all or any part of the building as the
                     licensed business-occupant, or as the legal or equitable
                     owner/occupant(s) or tenant(s) on a permanent, nontransient
                     basis, or any combination of the same. For purposes of this
                     section, evidence offered to prove that a building is so occupied
                     may include, but shall not be limited to, the regular receipt of
                     delivery of regular mail through the U.S. Postal Service; proof of
                     continual telephone, electric, gas, heating, water and sewer
                     services; a valid city business license, or the most recent, federal,
                     state, or city income tax statements indicating that the subject
                     property is the official business or residence address of the person
             or business claiming occupancy; or proof of pre-rental inspection.
      (D)    Open: A building or structure subject to the provisions of this
             section shall be deemed to be “open” if any one or more exterior
             doors other than a storm door is broken, open and, or closed but,
             without a properly functioning lock to secure it, or if one or more
             windows is broken or not capable of being locked and secured
             from intrusion, or any combination of the same.
      (E)    Owner: An owner of the freehold of the premises or any lesser
             estate therein, a mortgagee, a vendee-in-possession, assignee of
             rents, receiver, executor, trustee, lessee, agent or any other
             person, firm or corporation that is directly or indirectly in control of
             a building subject to the provisions of this section, and as set forth
             below.
      (F)    Seasonal Residence: A legal residential structure that has been
             used as a residence by the owner for a period of at least three
             consecutive months within the previous nine months and the
             same owner intends to resume residing at the property. A non-
             owner occupied home does not qualify as a Seasonal Residence.
      (G)    Vacation Home: A secondary legal residential dwelling used by
             the owner or one or more immediate member of the owner’s
             family, such as a son or daughter, for a period less than three
             consecutive months out of the previous nine months but still has
             verifiable occupancy periods spread throughout the year. If the
             home is rented or leased it does not qualify as a Vacation Home.
      (H)    Vacant: A building or structure shall be deemed to be vacant if no
             person or persons actually, currently conducts a lawfully licensed
             business, or lawfully resides or lives in any part of the building as
             the legal or equitable owner(s) or tenant-occupant(s), or owner-
             occupants, or tenant(s) on a permanent, nontransient basis,
             unless the structure is legally being used for storage purposes.
             Such storage use must be a legally allowed principal use of the
             zoning district where the structure is located and the use must be
             in compliance with all appropriate provisions of city ordinances,
             building and fire codes pertaining to the storage use.
(2)   Applicability. The requirements of this section shall be applicable to each
      owner of any building that is not a dwelling that shall have been vacant for
      more than 90 consecutive days and to each owner of residential property
      consisting of one or more vacant dwellings that shall have been vacant
      for more than 90 consecutive days. Each such owner shall cause to be
      filed a registration statement, which shall include the street address and
      parcel number of each such vacant building, the names and addresses of
      all owners, as hereinafter described, and any other information deemed
      necessary by the city. The registration fee(s) as required by subsection
      (b)(3) of this section shall be billed annually by the city and shall be paid
      within 30 days of the invoice-date. For purposes of this section, the
      following shall also be applicable:
      (A)    If the owner is a corporation or a limited liability corporation, the
             registration statement shall provide the names and residence
             addresses of all officers, directors and/or members and shall be
             accompanied by a copy of the most recent annual tax report filed
             with the State of Michigan;
      (B)    If an estate, the name and business address of the executor of the
             estate;
      (C)    If a trust, the name and address of all trustees, grantors, and
             beneficiaries;
      (D)    If a partnership, the names and residence addresses of all
             partners with an interest of ten percent or greater;
      (E)    If any other form of unincorporated association, the names and
             residence addresses of all principals with an interest of ten
             percent or greater;
      (F)    If an individual person, the name and residence address of that
             individual person.
(3)   Registration statement and fees; local agent. If none of the persons
      listed, as above, is shown at an address within the state or the home is a
      qualified vacation home or seasonal residence, the registration statement
      also shall provide the name and address of a person who resides within
      the state and who is authorized to accept service of process on behalf of
      the owners and who shall be designated as a responsible, local party or
      agent, both for purposes of notification in the event of an emergency
      affecting the public health, safety or welfare and for purposes of service of
      any and all notices or registration statements as herein authorized and in
      connection herewith. Registration shall be required for all vacant
      buildings, whether vacant and secure, vacant and open or vacant and
      boarded, and shall be required whenever any building has remained
      vacant for 90 consecutive days or more. In no instance shall the
      registration of a vacant building and the payment of registration fees be
      construed to exonerate the owner, agent or responsible party from
      responsibility for compliance with any other building code or housing code
      requirement. The owner of the vacant property at the time of billing shall
      be responsible for the payment of the non-refundable registration fee.
      Said fee shall be billed annually by the city and based on the duration of
      the vacancy as determined by the master fee resolution.
(4)   Appeal rights. The owner shall have the right to appeal the imposition of
      the registration fees to a committee appointed by the City Manager, upon
      filing an application in writing with the applicable $50 non-refundable filing
      fee to the City Manager’s Office no later than 30 calendar days after the
      date of the billing statement. On appeal, the owner shall bear the burden
      of providing satisfactory objective proof of occupancy.
(5)   One time waiver of registration fee. A one-time waiver of the registration
      fee may be granted by the committee appointed by the City Manager
      upon application of the owner, if all taxes and fees, such as, but not
      limited to, property taxes, mowing charges, past vacant building
      registration fees, landlord registrations, business registrations, utilities
      and any other applicable charges have been paid prior to application for
      the waiver. If the owner:
             (i.)     Demonstrate with satisfactory proof that he/she is in the
                      process of demolition, rehabilitation, or other substantial
                      repair of the vacant building; and
             (ii.)    Objectively demonstrates the anticipated length of time for
                      the demolition, rehabilitation, or other substantial repair of
                      the vacant building; or
             (iii.)   Provides satisfactory proof that he/she was actively
                      attempting to sell or lease the property during the vacancy
                      period.
(6)   Two-year waiver.
             (i.)     Upon application by the owner and satisfaction of
                      subsection (b)(5) above, the committee appointed by the
                      City Manager may grant a two-year waiver of the
                      registration fee if the owner meets the criteria for non-profit
                      organizations as defined by Section 501(c)(3) of the
                      Internal Revenue Code; or
             (ii.)    Upon application by the homeowner(s) who are temporarily
                      residing in a medical care facility, or a legal representative
                      of the homeowner(s), the committee may grant a
                      renewable two-year waiver of the registration fee. To be
                      eligible for a two-year waiver of fee, satisfactory proof that
                      the structure will only be temporarily vacant and the
                      property and structures must remain in good repair and
                      free of any enforcement actions by city departments.
                      Should the structure or property not be properly maintained
                      or in violation of city code, the waiver may be revoked by
                      the appeal committee.
             (iii.)   Upon application by the homeowner(s) or a legal
                      representative(s), the committee may grant a
                      renewable two-year waiver of the registration fee. To
                      be eligible for a two-year waiver of fee, satisfactory
                      proof that the structure will only be temporarily vacant
                      due to property being in probate court, being actively
                      rehabbed to city code so it may become occupied or
                      the structure is in good repair and has the presence
                      that the structure is not vacant (per zoning code for
                      allowable uses), and free of any enforcement actions
                      by city departments. Should the structure or property
                      not be properly maintained or in violation of city code,
                      the waiver may be revoked by the appeal committee.
(7)   Delinquent registration fees as a lien. After the owner is given notice of
      the amount of the registration fee due, except for those owners that have
      properly perfected an appeal pursuant to subsection (b)(4) above, and the
      owner fails to pay the amount due, said amount shall constitute a debt
              due and owing to the city, and the city may commence a civil action to
              collect such the unpaid debt.
(c)    Duty to amend registration statement. If the status of the registration information
       changes during the course of any calendar year, it is the responsibility of the
       owner, responsible party or agent for the same to contact the Planning
       Department within 30 days of the occurrence of such change and advise the
       department in writing of those changes. Except that valid seasonal residence or
       vacation home, as defined by the ordinance, are not required to notify the city of
       changes in occupancy status.
(d)    Exceptions. The fees imposed by this section shall not apply to any legitimate
       vacation or seasonal residence, as defined by this ordinance, or any building
       owned by the United States, the state, the city, nor to any of their respective
       agencies or political subdivisions but registration of all structures outlined in this
       section is still required.
(e)    Violations; penalties. The failure or refusal for any reason of any owner, or agent
       of an owner acting on behalf of the owner, to register a vacant building or to pay
       any fees required to be paid pursuant to the provisions of this section, within 30
       days after they become due, shall constitute a violation punishable upon
       conviction thereof by a fine in the amount of not less than $100 nor more than
       $500 for each failure or refusal to register, or for each failure or refusal to pay a
       required vacant building fee, as applicable. In such cases, whenever the
       minimum fine of $100 is imposed, it shall not be subject to suspension or
       reduction for any reason.
(Ord. No. 2240, 1-8-2008; Ord. No. 2256, 12-9-2008; Ord. No. 2260, 7-14-2009; Ord.
No. 2276, 4-27-2010)

Secs. 10-108 --10-130. Reserved.
Date: October 25, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Transmittal of 6/30/11 Comprehensive Annual Financial Report


SUMMARY OF REQUEST: The City's June 30, 2011 Comprehensive Annual
Financial Report (CAFR) has previously been distributed to City Commissioners via
both email and hard copy. The CAFR is also available on the City’s website at
www.shorelinecity.com. This audit covers the first full twelve-month fiscal period
since the City changed its fiscal year from a 12/31 to a 6/30 end date. At this time the
CAFR is being formally transmitted to the Commission in accordance with state law.
The CAFR has been prepared in accordance with GASB accounting standards. The
CAFR also includes the single-audit of federal grants received by the City.

FINANCIAL IMPACT: The CAFR report summarizes the City's financial activities
for the year and includes the independent auditor's unqualified opinion on the City's
financial statements.

BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Acceptance of the CAFR for the period ended
6/30/11.

COMMITTEE RECOMMENDATION: None.
Date: October 25, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: First Quarter 2011-12 Budget Reforecast


SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter
2011-12 Budget Reforecast which outlines proposed changes to the original budget
that have come about as result of changes in revenue projections, policy priorities,
labor contracts, updated economic conditions, or other factors.

FINANCIAL IMPACT: Specific proposed changes to the budget include:
      The beginning fund balance for the General Fund is $4,511,382 (as audited)
       up from $4,187,864 estimated at the time the budget was prepared;
      Overall the general fund revenue reforecast is 2% higher than originally
       budgeted. The increase is mostly attributable to the following changes:
           o Increase in estimated income tax revenues from $6.5 to $6.6 million
               based on recent collection figures and trends;
           o Increase in state shared revenue estimate from $3.05 million to $3.425
               million based on the City’s expected compliance with the EVIP
               program and the most current revenue projection data available from
               the state;
      Expenditures at this point are generally on target with original budget
       projections. However, two notable changes are proposed:
           o The Assessing Services budget is recommended to increase $50,000
               to cover costs for outside expertise and assistance with complex, high
               value tax appeals;
           o An unbudgeted transfer of $75,000 to the engineering Services fund is
               recommended to erase a fund deficit that has now persisted for
               several years.

BUDGET ACTION REQUIRED: Self-explanatory.
STAFF RECOMMENDATION: Approval.
COMMITTEE RECOMMENDATION: None.
                         CITY OF MUSKEGON
                           GENERAL FUND

                        HISTORICAL SUMMARY


                           Revenues &       Expenditures &    Fund Balance
    Year                   Transfers In      Transfers Out     at Year-End
    2000       $           23,685,516 $        22,232,657 $     2,951,734
    2001                   23,446,611          23,235,978       3,162,367
    2002                   23,617,163          23,971,534       2,807,996
    2003                   23,328,756          23,705,334       2,431,418
    2004                   23,401,793          23,388,019       2,445,192
    2005                   23,732,641          23,658,227       2,519,606
    2006                   24,669,210          24,498,776       2,690,040
    2007                   25,031,403          24,800,810       2,920,633
    2008                   25,563,632          26,100,539       2,383,726
    2009                   24,105,019          24,850,082       1,638,663
    2010*                  16,142,764          11,742,973       6,038,454
   2010-11                 24,029,686          25,556,758       4,511,382

                    Fiscal 2011-12 Budget Summary

FUND BALANCE AT START OF YEAR                                                $   4,511,382

MEANS OF FINANCING:
               Taxes                                           14,757,645        63.6%
               Licenses and Permits                             1,119,000         4.8%
               Federal Grants                                     169,889         0.7%
               State Grants                                        20,000         0.1%
               State Shared Revenue                             3,425,000        14.8%
               Other Charges                                    2,313,058        10.0%
               Interest & Rentals                                 354,761         1.5%
               Fines and Fees                                     472,000         2.0%
               Other Revenue                                      455,470         2.0%
               Other Financing Sources                            100,000         0.4%
                                                               23,186,823        100.0%




ESTIMATED REQUIREMENTS:
               Customer Value Added Activities                 18,079,526        76.3%
               Business Value Added Activities                  4,063,756        17.1%
               Fixed Budget Items                               1,562,191         6.6%
                                                               23,705,473        100.0%

ESTIMATED FUND BALANCE AT END OF YEAR                                        $   3,992,732

             OPERATING DEFICIT (USE OF FUND BALANCE)                         $    (518,650)


* Six-month transition period to new fiscal year
City of Muskegon
Annual Budget & Quarterly Budget Reforecast - General Fund


                                  Actual FY2010 (Stub                     Original Budget       Actual to Date           1Q Reforecast       % Change
                                          Year)         Actual FY2011    Estimate FY2012           FY2012                   FY2012        From Original
Available Fund Balance - BOY      $        1,638,663    $    6,038,454   $     4,187,864                             $        4,511,382

Taxes
City income tax                   $        3,368,057    $    6,599,753   $     6,500,000    $        1,723,601       $        6,600,000            2%
Property taxes - general                   6,438,439         6,626,276         6,307,985                     -                6,307,985            0%
Property taxes - sanitation                1,489,136         1,731,364         1,660,197                     -                1,660,197            0%
Industrial facilities taxes                  468,369            93,618            93,463                     -                   93,463            0%
Payments in lieu of taxes                     91,181            95,402            91,000                     -                   91,000            0%
Delinquent chargeback collected                    -                17             5,000                     3                    5,000            0%
                                  $       11,855,182    $   15,146,430   $    14,657,645    $        1,723,604       $       14,757,645            1%

Licenses and permits
Business licenses                 $           25,934    $       31,110   $        28,000    $            5,217       $           28,000            0%
Liquor licenses                                9,945            52,085            46,000                     -                   46,000            0%
Temporary Liquor licenses                     12,794             9,870            15,000                 1,825                   15,000            0%
Cable TV franchise fees                      178,239           362,103           340,000                     -                  360,000            6%
Rental property registration                  47,367           115,598           120,000                35,535                  120,000            0%
Burial permits                                39,624            93,483           110,000                20,129                  110,000            0%
Building permits                             135,155           255,906           200,000                55,306                  200,000            0%
Electrical permits                            43,576            78,852            75,000                24,794                   75,000            0%
Plumbing permits                              20,254            29,961            30,000                 6,473                   30,000            0%
Mechanical permits                            26,204            61,611            60,000                12,465                   60,000            0%
Vacant building                               45,070            89,060            75,000                18,318                   75,000            0%
                                  $          584,162    $    1,179,639   $     1,099,000    $          180,062       $        1,119,000            2%

Federal grants
Federal operational grant         $          122,965    $     192,842    $       169,889    $           39,178       $          169,889            0%
                                  $          122,965    $     192,842    $       169,889    $           39,178       $          169,889            0%

State grants
Act 302 police training grant     $            7,805    $      42,458    $        20,000    $                    -   $           20,000            0%
State operational grant                            -                -                  -                         -                    -              -
                                  $            7,805    $      42,458    $        20,000    $                    -   $           20,000            0%
City of Muskegon
Annual Budget & Quarterly Budget Reforecast - General Fund


                                            Actual FY2010 (Stub                    Original Budget       Actual to Date           1Q Reforecast       % Change
                                                    Year)         Actual FY2011   Estimate FY2012           FY2012                   FY2012        From Original
State shared revenue
State sales tax - Constitutional            $        1,189,635    $   2,454,851   $     2,300,000    $                    -   $        2,450,000            7%
State sales tax - Statutory                            642,431        1,392,008           750,000                         -              975,000           30%
                                            $        1,832,066    $   3,846,859   $     3,050,000    $                    -   $        3,425,000           12%

Other charges for sales and services
Tax administration fees                     $          194,131    $     297,326   $       289,500    $           41,126       $          289,500            0%
Utility administration fees                            110,000          225,000           225,000                56,250                  225,000            0%
Reimbursement for elections                                 79           12,672            15,500                   364                   15,500            0%
Reimbursement for school police officer                 13,361           47,440            19,000                   125                   19,000            0%
Indirect cost reimbursement                            582,084        1,144,020         1,144,018               286,005                1,144,018            0%
Site-plan review fee                                     1,500            2,800             3,000                 1,400                    3,000            0%
Sale of cemetery lots                                   11,744           29,740            25,000                 5,651                   25,000            0%
Sale of columbarium niches                               1,170            2,550               500                    78                      500            0%
Police miscellaneous                                    17,930           37,113            40,000                 9,869                   40,000            0%
Police impound fees                                     23,300           39,100            40,000                11,750                   40,000            0%
Landlord's alert fee                                       155               40                40                     -                       40            0%
Fire protection-state property                          35,212          120,210            80,000                60,163                   80,000            0%
Zoning fees                                              3,290            6,158             8,000                 4,380                    8,000            0%
Clerk fees                                                 197            2,039             3,500                   190                    3,500            0%
Clerk - passport fees                                    3,555            4,115             5,000                   495                    3,000          -40%
Tax abatement application fees                               -              810             2,000                   417                    2,000            0%
Lien Look-ups                                           12,920           14,455            15,000                 3,280                   15,000            0%
Treasurer fees                                          49,603           45,903            50,000                 1,927                   50,000            0%
False alarm fees                                         6,125           12,960            13,000                 4,290                   13,000            0%
Miscellaneous cemetery income                            6,571           20,398            18,000                49,319                   63,000          250%
Senior transit program fees                              5,082           10,401             9,000                 2,852                   11,000           22%
Fire miscellaneous                                         560            4,985             2,000                   313                    2,000            0%
Sanitation stickers                                     38,809           79,762            80,000                16,187                   80,000            0%
Lot cleanup fees (trash)                                18,348           29,493            50,000                 6,233                   30,000          -40%
Reimbursements for mowing and demolitions               20,102           49,760            50,000                13,570                   50,000            0%
Special events reimbursements                           30,546          104,937           100,000                94,382                  100,000            0%
Recreation program fees                                 19,753           20,831                 -                   691                    1,000              -
                                            $        1,206,127    $   2,365,018   $     2,287,058    $          671,307       $        2,313,058            1%
City of Muskegon
Annual Budget & Quarterly Budget Reforecast - General Fund


                                             Actual FY2010 (Stub                    Original Budget       Actual to Date       1Q Reforecast       % Change
                                                     Year)         Actual FY2011   Estimate FY2012           FY2012               FY2012        From Original
Interest and rental income
Interest                                     $           (2,349) $        85,120   $        50,000    $           62,774   $          100,000          100%
Procurement Card Rebate                                       -           33,668            45,000                     -               45,000            0%
Fire Station Lease - Central Dispatch                    20,879           47,895            42,000                 8,514               42,000            0%
Naval Musem Property Rental                                   -            2,500             5,000                 3,750                5,000            0%
Flea market                                              11,346           27,233            29,000                14,809               29,000            0%
Farmers market                                           18,484           43,471            35,000                26,121               35,000            0%
City hall rental                                          1,200            7,200             7,200                 1,200                7,200            0%
City right of way rental                                  6,800            6,800             8,561                     -                8,561            0%
McGraft park rentals                                     13,844           52,475            45,000                 1,215               45,000            0%
Other park rentals                                       22,133           49,525            38,000                 5,443               38,000            0%
                                             $           92,337 $        355,887   $       304,761    $          123,826   $          354,761           16%

Fines and fees
Income tax - penalty and interest            $          109,441    $     156,339   $       180,000    $           44,570   $          180,000            0%
Late fees on current taxes                               42,766           30,875            40,000                     -               40,000            0%
Interest on late invoices                                   247            2,011             2,000                   225                2,000            0%
Parking fines                                            71,160          100,885           125,000                18,027              110,000          -12%
Court fines                                              72,929          142,764           170,000                20,216              140,000          -18%
                                             $          296,543    $     432,874   $       517,000    $           83,038   $          472,000           -9%

Other revenue
Sale of land and assets                      $              500    $           -   $         1,000    $                -   $            1,000            0%
Police sale and auction proceeds                          1,823                -                 -                 4,010                4,100              -
CDBG program reimbursements                              48,030          324,393           382,870                 3,019              382,870            0%
Sanitation reimbursements                                43,030                -                 -                     -                    -              -
Contributions                                            19,740           12,455            11,000                   617               11,000            0%
Contributions - Veteran's Park Maintenance                    -           19,402            19,500                 1,234               19,500            0%
Fisherman's Landing Repayment                                 -           16,106            14,500                     -               14,500            0%
Darl & Kathleen Staley Trust                                  -                -                 -                     -                    -              -
Muskegon County Community Foundation                      2,394           12,005             1,500                     -                1,500            0%
Miscellaneous reimbursements                                  -                -             1,000                     -                1,000            0%
Miscellaneous and sundry                                  2,873            5,961            25,000                16,144               20,000          -20%
                                             $          118,390    $     390,322   $       456,370    $           25,024   $          455,470            0%
City of Muskegon
Annual Budget & Quarterly Budget Reforecast - General Fund


                                  Actual FY2010 (Stub                     Original Budget       Actual to Date       1Q Reforecast       % Change
                                          Year)         Actual FY2011    Estimate FY2012           FY2012               FY2012        From Original
Other financing sources
Operating transfers in
 Cemetery Perpetual Care          $            2,187    $       2,357    $        50,000    $              121   $           50,000            0%
 General Insurance Fund                            -                -                  -                     -                    -              -
 LDFA Fund                                         -                -                  -                     -                    -              -
 Budget Stabilization Fund                         -                -                  -                     -                    -              -
 TIFA Fund (Arena Operations)                 25,000           75,000             50,000                12,500               50,000            0%
                                  $           27,187    $      77,357    $       100,000    $           12,621   $          100,000            0%

Total general fund revenues and
other sources                     $       16,142,764    $   24,029,686   $    22,661,723    $        2,858,660   $       23,186,823            2%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                            Actual As % Change
                                               Actual FY2010                    Original Budget       Actual to Date       1Q Reforecast      % of      From
                                                (Stub Year)    Actual FY2011   Estimate FY2012           FY2012               FY2012        Revised    Original
       I. Customer Value Added Activities

40301 Police Department
5100     Salaries & Benefits                   $   3,770,931   $   7,675,922   $      7,836,965   $        2,011,225   $        7,836,965        26%        0%
5200     Operating Supplies                           28,819          70,082             90,000               15,153               90,000        17%        0%
5300     Contractual Services                        465,614         897,777            820,024              185,122              820,024        23%        0%
5400     Other Expenses                                4,773          15,826             16,000                5,215               16,000        33%        0%
5700     Capital Outlays                              19,632          31,331             15,000                    -               15,000         0%        0%
5900     Other Financing Uses                              -               -                  -                    -                    -         N/A         -
                                               $   4,289,769   $   8,690,938   $      8,777,989   $        2,216,715   $        8,777,989        25%        0%
                                               $   4,289,769   $   8,690,938   $      8,777,989   $        2,216,715   $        8,777,989        25%        0%

50336 Fire Department
5100     Salaries & Benefits                   $   1,687,648   $   3,355,077   $      3,191,899   $          908,690   $        3,191,899        28%        0%
5200     Operating Supplies                           37,904          85,462            116,500               14,669              116,500        13%        0%
5300     Contractual Services                         95,652         173,320            149,861               28,587              149,861        19%        0%
5400     Other Expenses                                1,751           1,597              4,000                    -                4,000         0%        0%
5700     Capital Outlays                              37,389          95,925             60,000                9,087               60,000        15%        0%
5900     Other Financing Uses                              -               -                  -                    -                    -         N/A         -
                                               $   1,860,344   $   3,711,381   $      3,522,260   $          961,033   $        3,522,260        27%        0%

50387 Fire Safety Inspections
5100     Salaries & Benefits                   $     319,970   $     535,750   $        464,680   $          118,476   $          464,680        25%        0%
5200     Operating Supplies                            5,391          11,469             10,000                  723               10,000         7%        0%
5300     Contractual Services                         44,782         103,147            108,040                5,443              108,040         5%        0%
5400     Other Expenses                                1,867           6,042             10,000                1,074               10,000        11%        0%
5700     Capital Outlays                                   -               -              2,000                1,708                2,000        85%        0%
5900     Other Financing Uses                              -               -                  -                    -                    -         N/A         -
                                               $     372,010   $     656,408   $        594,720   $          127,424   $          594,720        21%        0%
                                               $   2,232,354   $   4,367,789   $      4,116,980   $        1,088,457   $        4,116,980        26%        0%



60523 General Sanitation
5100     Salaries & Benefits                   $     15,240    $      67,009   $         30,000   $            5,552   $           30,000        19%        0%
5200     Operating Supplies                               -               16                  -                    -                    -         N/A         -
5300     Contractual Services                       774,346        1,542,755          1,650,000              265,195            1,650,000        16%        0%
5400     Other Expenses                                   -                -                  -                    -                    -         N/A         -
5700     Capital Outlays                                  -                -                  -                    -                    -         N/A         -
5900     Other Financing Uses                       100,000          200,000            200,000               50,000              200,000        25%        0%
                                               $    889,586    $   1,809,780   $      1,880,000   $          320,747   $        1,880,000        17%        0%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                       Actual As % Change
                                               Actual FY2010                    Original Budget           Actual to Date           1Q Reforecast         % of      From
                                                (Stub Year)    Actual FY2011   Estimate FY2012               FY2012                   FY2012           Revised    Original
60528 Recycling
5100     Salaries & Benefits                   $           -   $           -   $                  -   $                    -   $                   -        N/A          -
5200     Operating Supplies                                -               -                      -                        -                       -        N/A          -
5300     Contractual Services                              -               -                      -                        -                       -        N/A          -
5400     Other Expenses                                    -               -                      -                        -                       -        N/A          -
5700     Capital Outlays                                   -               -                      -                        -                       -        N/A          -
5900     Other Financing Uses                              -               -                      -                        -                       -        N/A          -
                                               $           -   $           -   $                  -   $                    -   $                   -        N/A        0%
60550 Stormwater Management
5100     Salaries & Benefits                   $           -   $          -    $              -       $                    -   $                -           N/A          -
5200     Operating Supplies                                -              -                   -                            -                    -           N/A          -
5300     Contractual Services                          4,000         17,029              17,786                            -               17,786           0%         0%
5400     Other Expenses                                    -              -                   -                            -                    -           N/A          -
5700     Capital Outlays                                   -              -                   -                            -                    -           N/A          -
5900     Other Financing Uses                              -              -                   -                            -                    -           N/A          -
                                               $       4,000   $     17,029    $         17,786       $                    -   $           17,786           0%         0%
60448 Streetlighting
5100     Salaries & Benefits                   $          -    $        224    $              -       $                -       $                -            N/A         -
5200     Operating Supplies                               -               -                   -                        -                        -            N/A         -
5300     Contractual Services                       395,257         784,081             750,000                  129,493                  775,000           17%        3%
5400     Other Expenses                                   -               -                   -                        -                        -            N/A         -
5700     Capital Outlays                                  -               -              10,000                        -                   10,000            0%        0%
5900     Other Financing Uses                             -               -                   -                        -                        -            N/A         -
                                               $    395,257    $    784,305    $        760,000       $          129,493       $          785,000           16%        3%
60707 Senior Citizen Transit
5100     Salaries & Benefits                   $     26,539    $     57,941    $         58,678       $           17,398       $           66,700           26%       14%
5200     Operating Supplies                               -               -                   -                        -                        -            N/A         -
5300     Contractual Services                         5,360          10,400              10,400                    1,600                   10,400           15%        0%
5400     Other Expenses                                   -               -                   -                        -                        -            N/A         -
5700     Capital Outlays                                  -               -                   -                        -                        -            N/A         -
5900     Other Financing Uses                             -               -                   -                        -                        -            N/A         -
                                               $     31,899    $     68,341    $         69,078       $           18,998       $           77,100           25%       12%
60446 Community Event Support
5100     Salaries & Benefits                   $      9,362    $     11,381    $         10,000       $            8,830       $           10,000           88%        0%
5200     Operating Supplies                             190             644               1,100                       58                    1,100            5%        0%
5300     Contractual Services                         5,008           8,180              12,500                    1,516                   12,500           12%        0%
5400     Other Expenses                                   -               -                   -                        -                        -            N/A         -
5700     Capital Outlays                                  -               -                   -                        -                        -            N/A         -
5900     Other Financing Uses                             -               -                   -                        -                        -            N/A         -
                                               $     14,560    $     20,205    $         23,600       $           10,404       $           23,600           44%        0%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                            Actual As % Change
                                               Actual FY2010                    Original Budget       Actual to Date       1Q Reforecast      % of      From
                                                (Stub Year)    Actual FY2011   Estimate FY2012           FY2012               FY2012        Revised    Original
70751 Parks Maintenance
5100     Salaries & Benefits                   $    191,755    $    357,563    $        387,222   $           95,796   $          387,222        25%        0%
5200     Operating Supplies                          23,213          53,777              93,850               23,490               93,850        25%        0%
5300     Contractual Services                       279,987         556,578             646,785              196,812              646,785        30%        0%
5400     Other Expenses                                 175              20                   -                   21                    -         N/A         -
5700     Capital Outlays                                  -          11,090              11,000                   40               11,000         0%        0%
5900     Other Financing Uses                             -               -                   -                    -                    -         N/A         -
                                               $    495,130    $    979,028    $      1,138,857   $          316,159   $        1,138,857        28%        0%
70757 Mc Graft Park Maintenance
5100     Salaries & Benefits                   $      4,674    $      6,412    $          6,551   $            2,229   $            6,551        34%        0%
5200     Operating Supplies                           1,130           3,547               1,400                1,335                1,400        95%        0%
5300     Contractual Services                         8,593          37,173              35,700                5,598               35,700        16%        0%
5400     Other Expenses                                   -               -                   -                    -                    -         N/A         -
5700     Capital Outlays                                  -               -                   -                    -                    -         N/A         -
5900     Other Financing Uses                             -               -                   -                    -                    -         N/A         -
                                               $     14,397    $     47,132    $         43,651   $            9,162   $           43,651        21%        0%
70276 Cemeteries Maintenance
5100     Salaries & Benefits                   $     87,040    $    112,101    $        108,948   $           22,206   $          108,948        20%        0%
5200     Operating Supplies                             569           4,882               6,750                1,476                6,750        22%        0%
5300     Contractual Services                        96,313         210,640             244,824               79,427              244,824        32%        0%
5400     Other Expenses                                   -               -                   -                    -                    -         N/A         -
5700     Capital Outlays                                 72           8,383                   -                    -                    -         N/A         -
5900     Other Financing Uses                             -               -                   -                    -                    -         N/A         -
                                               $    183,994    $    336,006    $        360,522   $          103,109   $          360,522        29%        0%
70585 Parking Operations
5100     Salaries & Benefits                   $         501   $       1,748   $              -   $              133   $                -         N/A         -
5200     Operating Supplies                                -             274                  -                    -                    -         N/A         -
5300     Contractual Services                          1,944           5,182              3,000                  513                3,000        17%        0%
5400     Other Expenses                                    -               -                  -                    -                    -         N/A         -
5700     Capital Outlays                                   -               -                  -                    -                    -         N/A         -
5900     Other Financing Uses                              -               -                  -                    -                    -         N/A         -
                                               $       2,445   $       7,204   $          3,000   $              646   $            3,000        22%        0%
70357 Graffiti Removal
5100     Salaries & Benefits                   $       1,445   $       2,659   $              -   $              988   $                -         N/A         -
5200     Operating Supplies                              618             465                  -                    -                    -         N/A         -
5300     Contractual Services                            391             123              4,861                   43                4,861         1%        0%
5400     Other Expenses                                    -               -                  -                    -                    -         N/A         -
5700     Capital Outlays                                   -               -                  -                    -                    -         N/A         -
5900     Other Financing Uses                              -               -                  -                    -                    -         N/A         -
                                               $       2,454   $       3,247   $          4,861   $            1,031   $            4,861        21%        0%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                      Actual As % Change
                                                         Actual FY2010                    Original Budget       Actual to Date       1Q Reforecast      % of      From
                                                          (Stub Year)    Actual FY2011   Estimate FY2012           FY2012               FY2012        Revised    Original
70863 Farmers' Market & Flea Market
5100     Salaries & Benefits                             $       7,850   $      17,869   $         22,240   $            8,162   $           22,240        37%        0%
5200     Operating Supplies                                      2,085           1,802              1,800                  520                1,800        29%        0%
5300     Contractual Services                                    8,181          31,538             29,950               10,726               29,950        36%        0%
5400     Other Expenses                                             50               -                100                    -                  100         0%        0%
5700     Capital Outlays                                         1,326               -              6,000                  117                6,000         2%        0%
5900     Other Financing Uses                                        -               -                  -                    -                    -         N/A         -
                                                         $      19,492   $      51,209   $         60,090   $           19,525   $           60,090        32%        0%
                                                         $   2,053,214   $   4,123,486   $      4,361,445   $          929,274   $        4,394,467        21%        1%

70775 General Recreation
5100     Salaries & Benefits                             $     57,201    $     21,202    $              -   $                -   $                -         N/A         -
5200     Operating Supplies                                     4,816             633                   -                    -                    -         N/A         -
5300     Contractual Services                                  26,070          61,387              96,000               42,062               96,000        44%        0%
5400     Other Expenses                                           708               -                   -                    -                    -         N/A         -
5700     Capital Outlays                                            -               -                   -                    -                    -         N/A         -
5900     Other Financing Uses                                       -               -                   -                    -                    -         N/A         -
                                                         $     88,795    $     83,222    $         96,000   $           42,062   $           96,000        44%        0%
80387 Environmental Services
5100     Salaries & Benefits                             $     69,234    $    218,388    $        335,466   $           86,103   $          335,466        26%        0%
5200     Operating Supplies                                     4,905           6,529               7,300                2,135                7,300        29%        0%
5300     Contractual Services                                  89,930         185,550             185,000               96,988              185,000        52%        0%
5400     Other Expenses                                             -              35               1,000                  145                1,000        15%        0%
5700     Capital Outlays                                        2,051           1,281               3,500                   61                3,500         2%        0%
5900     Other Financing Uses                                       -               -                   -                    -                    -         N/A         -
                                                         $    166,120    $    411,783    $        532,266   $          185,432   $          532,266        35%        0%
                                                         $    254,915    $    495,005    $        628,266   $          227,494   $          628,266        36%        0%

10875 Other - Contributions to Outside Agencies
                                                         $     40,082 $         80,164 $           80,164 $             20,041 $
       Muskegon Area Transit (MATS)                                                                                                          80,164        25%        0%
                                                               20,803           20,272                                       -
                                                                                                   21,000                                    21,000
       Neighborhood Association Grants                                                                                                                      0%        0%
                                                               17,784           45,660                                  11,392
                                                                                                   45,660                                    45,660
       Muskegon Area First                                                                                                                                 25%        0%
                                                                7,357            7,000                                       -
                                                                                                    7,000                                     7,000
       Veterans Memorial Day Costs                                                                                                                          0%        0%
                                                                5,000                 -                                      -
                                                                                                         -                                        -
       Mainstreet                                                                                                                                           N/A         -
                                                                2,500            2,500                                       -
                                                                                                    2,500                                     2,500
       Lakeside Business District                                                                                                                           0%        0%
                                                                2,500            2,500                                       -
                                                                                                    2,500                                     2,500
       211 Service                                                                                                                                          0%        0%
                                                                     -                -                                      -
                                                                                                         -                                        -
       Gypsy Moth Program                                                                                                                                   N/A         -
                                                                     -           1,000                                       -
                                                                                                    1,000                                     1,000
       Consolidation Feasibility Study                                                                                                                      0%        0%
                                                                     -       1,000,000                                       -
                                                                                                         -                                        -
       MERS Supplemental Contribution                                                                                                                       N/A         -
                                                                1,000            1,000                                       -
                                                                                                    1,000                                     1,000
       MLK Diversity Program                                                                                                                                0%        0%
                                                                1,000            1,000                                       -
                                                                                                    1,000                                     1,000
       Muskegon Area Labor Management (MALMC)                                                                                                               0%        0%
                                                                     -           6,200                                       -
                                                                                                         -                                        -
       Muskegon County and Humane Society - Feral Cats                                                                                                      N/A         -
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                               Actual As % Change
                                               Actual FY2010                       Original Budget       Actual to Date       1Q Reforecast      % of      From
                                                 (Stub Year)     Actual FY2011    Estimate FY2012           FY2012               FY2012        Revised    Original
                                                             -               -                                        -
                                                                                                 -                                         -
        Other                                                                                                                                        N/A           -
       Contributions To Outside Agencies       $       98,026    $   1,167,296    $        161,824 $             31,433   $          161,824        19%         0%
                                               $       98,026    $   1,167,296    $        161,824 $             31,433   $          161,824        19%         0%


       Total Customer Value Added Activities   $   8,928,278     $   18,844,514   $     18,046,504   $        4,493,373   $       18,079,526        25%         0%
       As a Percent of Total General Fund
       Expenditures                                     76.0%            73.7%               76.6%                76.9%                76.3%

       II. Business Value Added Activities

10101 City Commission
5100      Salaries & Benefits                  $       33,837    $      64,864    $         67,652   $           17,695   $           67,652        26%         0%
5200      Operating Supplies                            8,205           15,142              12,300                3,000               12,300        24%         0%
5300      Contractual Services                          1,407            1,594               1,800                1,029                1,800        57%         0%
5400      Other Expenses                                  675            1,347               2,000                   66                2,000         3%         0%
5700      Capital Outlays                                 600            1,199               1,200                  300                1,200        25%         0%
5900      Other Financing Uses                              -                -                   -                    -                    -         N/A          -
                                               $       44,724    $      84,146    $         84,952   $           22,090   $           84,952        26%         0%
10102 City Promotions & Public Relations
5100      Salaries & Benefits                  $            -    $            -   $              -   $                -   $                -         N/A          -
5200      Operating Supplies                              163               411                  -                  116                    -         N/A          -
5300      Contractual Services                          2,881             3,780             11,350                  514               11,350         5%         0%
5400      Other Expenses                                    -                 -                  -                    -                    -         N/A          -
5700      Capital Outlays                                   -                 -                  -                    -                    -         N/A          -
5900      Other Financing Uses                              -                 -                  -                    -                    -         N/A          -
                                               $        3,044    $        4,191   $         11,350   $              630   $           11,350         6%         0%
10172 City Manager
5100      Salaries & Benefits                  $     136,667     $     253,954    $        257,366   $           65,922   $          257,366        26%         0%
5200      Operating Supplies                           1,086             1,338               2,000                    6                2,000         0%         0%
5300      Contractual Services                         4,873             8,174               7,750                  198                7,750         3%         0%
5400      Other Expenses                                 252               944               2,000                   70                2,000         4%         0%
5700      Capital Outlays                                  -                 -               1,000                    -                1,000         0%         0%
5900      Other Financing Uses                             -                 -                   -                    -                    -         N/A          -
                                               $     142,878     $     264,410    $        270,116   $           66,196   $          270,116        25%         0%
10145 City Attorney
5100      Salaries & Benefits                  $           -     $           -    $              -   $                -   $                -         N/A          -
5200      Operating Supplies                             808               808               2,000                    -                2,000         0%         0%
5300      Contractual Services                       159,223           331,067             320,508               78,790              320,508        25%         0%
5400      Other Expenses                                   -                 -                   -                    -                    -         N/A          -
5700      Capital Outlays                                  -                 -                   -                    -                    -         N/A          -
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                          Actual As % Change
                                               Actual FY2010                       Original Budget           Actual to Date           1Q Reforecast         % of      From
                                                 (Stub Year)     Actual FY2011    Estimate FY2012               FY2012                   FY2012           Revised    Original
5900     Other Financing Uses                                -                -                  -                        -                        -            N/A           -
                                               $      160,031    $      331,875   $        322,508       $           78,790       $          322,508           24%         0%
                                               $      350,677    $      684,622   $        688,926       $          167,706       $          688,926           24%         0%

20228 Affirmative Action
5100     Salaries & Benefits                   $       39,129    $      78,270    $         80,535       $           21,478       $           80,535           27%         0%
5200     Operating Supplies                               169              324                 750                       23                      750            3%         0%
5300     Contractual Services                             660            1,587               2,027                      117                    2,027            6%         0%
5400     Other Expenses                                     -               50               1,000                       61                    1,000            6%         0%
5700     Capital Outlays                                    -                -                 500                        -                      500            0%         0%
5900     Other Financing Uses                               -                -                   -                        -                        -            N/A          -
                                               $       39,958    $      80,231    $         84,812       $           21,679       $           84,812           26%         0%
20744 Julia Hackley Internships
5100     Salaries & Benefits                   $             -   $            -   $                  -   $                    -   $                   -         N/A          -
5200     Operating Supplies                                  -                -                      -                        -                       -         N/A          -
5300     Contractual Services                                -                -                      -                        -                       -         N/A          -
5400     Other Expenses                                      -                -                      -                        -                       -         N/A          -
5700     Capital Outlays                                     -                -                      -                        -                       -         N/A          -
5900     Other Financing Uses                                -                -                      -                        -                       -         N/A          -
                                               $             -   $            -   $                  -   $                    -   $                   -         N/A        0%
20215 City Clerk & Elections
5100     Salaries & Benefits                   $     103,016     $     244,239    $        237,997       $           57,343       $          237,997           24%         0%
5200     Operating Supplies                            8,815            18,702              34,934                    1,209                   34,934            3%         0%
5300     Contractual Services                          9,938            16,625              14,750                      995                   14,750            7%         0%
5400     Other Expenses                                1,113               473               1,500                       24                    1,500            2%         0%
5700     Capital Outlays                                 866             6,011               1,000                        -                    1,000            0%         0%
5900     Other Financing Uses                              -                 -                   -                        -                        -            N/A          -
                                               $     123,748     $     286,050    $        290,181       $           59,571       $          290,181           21%         0%
20220 Civil Service
5100     Salaries & Benefits                   $      85,667     $     107,949    $              -       $            5,961       $                -            N/A          -
5200     Operating Supplies                            1,099             1,626                   -                       50                        -            N/A          -
5300     Contractual Services                          3,425            12,707              90,000                    3,857                   90,000            4%         0%
5400     Other Expenses                                  697             3,768                   -                        -                        -            N/A          -
5700     Capital Outlays                                 572                 -                   -                        -                        -            N/A          -
5900     Other Financing Uses                              -                 -                   -                        -                        -            N/A          -
                                               $      91,460     $     126,050    $         90,000       $            9,868       $           90,000           11%         0%
                                               $     255,166     $     492,331    $        464,993       $           91,118       $          464,993           20%         0%

30202 Finance Administration
5100     Salaries & Benefits                   $     172,829     $     333,061    $        342,702       $           86,053       $          342,702           25%         0%
5200     Operating Supplies                            1,392             3,571               4,700                    2,075                    4,700           44%         0%
5300     Contractual Services                         59,515            73,010              66,275                   10,425                   66,275           16%         0%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                 Actual As % Change
                                               Actual FY2010                        Original Budget       Actual to Date       1Q Reforecast       % of      From
                                                 (Stub Year)     Actual FY2011     Estimate FY2012           FY2012               FY2012         Revised    Original
5400     Other Expenses                                    65             1,193                 1,000                 616               1,000         62%         0%
5700     Capital Outlays                                   51             1,716                 3,000                    -              3,000           0%        0%
5900     Other Financing Uses                                -                -                     -                    -                   -         N/A           -
                                               $      233,852    $      412,551   $           417,677   $          99,169    $        417,677         24%         0%
30209 Assessing Services
5100     Salaries & Benefits                   $       2,423     $       3,367    $           7,308     $            507     $          7,308          7%         0%
5200     Operating Supplies                                -                 -                    -                    -                    -          N/A          -
5300     Contractual Services                        237,713           416,781              344,367              125,092              394,367         32%        15%
5400     Other Expenses                                    -                 -                    -                    -                    -          N/A          -
5700     Capital Outlays                                   -                 -                    -                    -                    -          N/A          -
5900     Other Financing Uses                              -                 -                    -                    -                    -          N/A          -
                                               $     240,136     $     420,148    $         351,675     $        125,599     $        401,675         31%        14%
30805 Arena Administration
5100     Salaries & Benefits                   $           -     $           -    $               -     $              -     $              -          N/A          -
5200     Operating Supplies                                -                 -                    -                    -                    -          N/A          -
5300     Contractual Services                        101,867           241,263              235,000              117,500              235,000         50%         0%
5400     Other Expenses                                    -                 -                    -                    -                    -          N/A          -
5700     Capital Outlays                                   -             1,661                    -                    -                    -          N/A          -
5900     Other Financing Uses                              -                 -                    -                    -                    -          N/A          -
                                               $     101,867     $     242,924    $         235,000     $        117,500     $        235,000         50%         0%
30205 Income Tax Administration
5100     Salaries & Benefits                   $     167,338     $     321,985    $         331,478     $         87,489     $        331,478         26%         0%
5200     Operating Supplies                            9,250            12,486               12,160                1,464               12,160         12%         0%
5300     Contractual Services                         41,158            65,773               77,550                8,965               77,550         12%         0%
5400     Other Expenses                                   75               488                  800                    -                  800          0%         0%
5700     Capital Outlays                                   -             7,175                2,500                   57                2,500          2%         0%
5900     Other Financing Uses                              -                 -                    -                    -                    -          N/A          -
                                               $     217,821     $     407,907    $         424,488     $         97,975     $        424,488         23%         0%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                            Actual As % Change
                                               Actual FY2010                    Original Budget       Actual to Date       1Q Reforecast      % of      From
                                                (Stub Year)    Actual FY2011   Estimate FY2012           FY2012               FY2012        Revised    Original
30253 City Treasurer
5100     Salaries & Benefits                   $    160,099    $    312,621    $        323,707   $           83,474   $          323,707        26%        0%
5200     Operating Supplies                          32,047          65,024              50,000               10,760               50,000        22%        0%
5300     Contractual Services                        58,329         108,627              85,000               18,611               85,000        22%        0%
5400     Other Expenses                                 462             715               1,500                    7                1,500         0%        0%
5700     Capital Outlays                                  -           5,198               2,921                   20                2,921         1%        0%
5900     Other Financing Uses                             -               -                   -                    -                    -         N/A         -
                                               $    250,937    $    492,185    $        463,128   $          112,872   $          463,128        24%        0%
30248 Information Systems Administration
5100     Salaries & Benefits                   $     148,629   $     286,590   $        294,686   $           74,899   $          294,686        25%        0%
5200     Operating Supplies                                -             143              1,788                    -                1,788         0%        0%
5300     Contractual Services                         35,595          46,281             54,992                1,706               54,992         3%        0%
5400     Other Expenses                                  149           5,356              8,000                    -                8,000         0%        0%
5700     Capital Outlays                              12,443          38,626             32,250                  761               32,250         2%        0%
5900     Other Financing Uses                              -               -                  -                    -                    -         N/A         -
                                               $     196,816   $     376,996   $        391,716   $           77,366   $          391,716        20%        0%
                                               $   1,241,429   $   2,352,711   $      2,283,684   $          630,481   $        2,333,684        27%        2%

60265 City Hall Maintenance
5100     Salaries & Benefits                   $     37,746    $     39,749    $         35,777   $            9,081   $           35,777        25%        0%
5200     Operating Supplies                           5,110           9,285              15,525                1,878               15,525        12%        0%
5300     Contractual Services                        93,479         186,687             222,000               34,141              222,000        15%        0%
5400     Other Expenses                                   -              13                   -                  148                    -         N/A         -
5700     Capital Outlays                                100           7,848               3,590                2,955                3,590        82%        0%
5900     Other Financing Uses                             -               -                   -                    -                    -         N/A         -
                                               $    136,435    $    243,582    $        276,892   $           48,203   $          276,892        17%        0%
                                               $    136,435    $    243,582    $        276,892   $           48,203   $          276,892        17%        0%

80400 Planning, Zoning and Economic Development
5100     Salaries & Benefits                   $    183,633    $    334,910 $           268,361   $           69,569   $          268,361        26%        0%
5200     Operating Supplies                           1,525           3,766               4,600                  555                4,600        12%        0%
5300     Contractual Services                        17,389          (6,463)             20,300                2,472               20,300        12%        0%
5400     Other Expenses                                 867             958               4,000                  354                4,000         9%        0%
5700     Capital Outlays                                  -             439               2,000                    -                2,000         0%        0%
5900     Other Financing Uses                             -               -                   -                    -                    -         N/A         -
                                               $    203,414    $    333,610 $           299,261   $           72,950   $          299,261        24%        0%
                                               $    203,414    $    333,610 $           299,261   $           72,950   $          299,261        24%        0%

       Total Business Value Added Activities   $   2,187,121   $   4,106,856   $      4,013,756   $        1,010,458   $        4,063,756        25%        1%
       As a Percent of Total General Fund
       Expenditures                                    18.6%           16.1%              17.0%                17.3%                17.1%                 0.6%
        Annual Budget & Quarterly Budget Reforecast - General Fund
        General Fund Expenditure Summary By Function

                                                                                                                                                   Actual As % Change
                                                Actual FY2010                      Original Budget       Actual to Date           1Q Reforecast      % of      From
                                                 (Stub Year)     Actual FY2011    Estimate FY2012           FY2012                   FY2012        Revised    Original

        III. Fixed Budget Items

30999 Transfers To Other Funds
          Major Street Fund                     $           -    $           -    $              -   $                -       $                -         N/A         -
          Local Street Fund                           140,000          280,000             280,000               70,000                  280,000        25%        0%
          Engineering                                       -                -                   -                    -                   75,000         0%    #DIV/0!
          Sidewalk                                          -          100,000                   -                    -                        -         N/A         -
          Arena Maintenance                                 -            6,000                   -                    -                        -         N/A         -
          State Grants                                      -           34,675                   -                    -                        -         N/A         -
          LDFA Debt Service Fund (Smartzone)           50,000          100,000             100,000               25,000                  100,000        25%        0%
          General Insurance                            14,023           28,046              28,046             7,011.50                   28,046        25%        0%
                                                $     204,023    $     548,721    $        408,046   $          102,012       $          483,046        21%      18%
                                                                                                                                                                     -
30851   General Insurance                       $     133,527    $     259,907    $        275,000   $                    -   $          275,000         0%        0%
30906   Debt Retirement                               109,174         1,252,795            281,145              176,473                  281,145        63%        0%
10891   Contingency and Bad Debt Expense               68,471          515,238             250,000                        -              250,000         0%        0%
90000   Major Capital Improvements                    112,379           28,727             273,000               59,679                  273,000        22%        0%
        Total Fixed-Budget Items                $     627,574    $    2,605,388   $      1,487,191   $          338,164       $        1,562,191        22%        5%
        As a Percent of Total General Fund
        Expenditures                                      5.3%           10.2%                6.3%                  5.8%                    6.6%



         Total General Fund                     $   11,742,973   $   25,556,758   $     23,547,451   $        5,841,995       $       23,705,473        25%        1%
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                              Actual As % Change
                                               Actual FY2010                      Original Budget       Actual to Date       1Q Reforecast      % of      From
                                                (Stub Year)     Actual FY2011    Estimate FY2012           FY2012               FY2012        Revised    Original



       Recap: Total General Fund By Expenditure Object
5100     Salaries & Benefits                   $    7,520,403   $   14,822,805   $     14,700,218   $        3,865,259   $       14,708,240        26%        0%
5200     Operating Supplies                           179,309          372,208            469,457               80,695              469,457        17%        0%
5300     Contractual Services                       3,428,904        8,074,794          7,005,224            1,484,970            7,080,224        21%        1%
5400     Other Expenses                                13,679           38,825             52,900                7,801               52,900        15%        0%
5700     Capital Outlays                              187,481          246,610            430,461               74,785              430,461        17%        0%
5900     All Other Financing Uses                     413,197        2,001,516            889,191              328,485              964,191        34%        8%
        Total General Fund                     $   11,742,973   $   25,556,758   $     23,547,451   $        5,841,995   $       23,705,473        25%        1%
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                    Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                              Actual 2009                                 Actual 2011                                                                                             Comments
                                                                    (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012

202     Major Streets and State Trunklines Fund
                                          $       284,912       $       272,846       $       359,157
        Available Fund Balance - BOY                                                                        $    481,059      $    566,001                          $      566,001


        Means of Financing
         Special assessments              $       233,007       $        10,818       $       172,302       $    175,000      $                -                    $      175,000
         Federal & state grants                 1,593,425                 9,443             1,457,137           2,131,000                      -                         1,936,000
         State shared revenue                   2,558,600             1,280,364             2,704,187           2,481,364          300,206                               2,481,364
         Interest income                           50,177                44,302                36,626              25,000             1,099                                 25,000
         Operating transfers in                   200,000                         -                     -                 -                    -                                  -
         Other                                     45,384                 8,353               415,620                                                                                 PROPOSED BOND FOR GRANT MATCHE
                                                                                                                2,040,000         2,000,780                              2,000,000
                                          $     4,680,593       $     1,353,280       $     4,785,872       $   6,852,364     $   2,302,085                         $    6,617,364


60900   Operating Expenditures
5100      Salaries & Benefits             $       629,511       $       278,560       $       622,597                                                  16%
                                                                                                            $    839,936      $    130,715                          $      839,936
5200      Operating Supplies                      225,883               196,491               231,295                                                   6%
                                                                                                                 240,600            15,110                                 240,600
5300      Contractual Services                    946,059               533,999               957,051                                                  14%
                                                                                                                1,039,946          145,651                               1,039,946
5400      Other Expenses                            3,354                   995                37,904                                                   0%
                                                                                                                    1,000                      -                             1,000
5700      Capital Outlays                                   -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -


5900      Other Financing Uses                              -           100,000               400,000                                                   0%
                                                                                                                   40,000                      -                            28,000


                                          $     1,804,807       $     1,110,045       $     2,248,847                                                  14%
                                                                                                            $   2,161,482     $    291,476                          $    2,149,482


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
                                                                                                                                                                                      SEE "BUDGETED CAPITAL
5300      Contractual Services                  2,887,852               156,924             2,330,181                                                   6%
                                                                                                                3,915,000          237,639                               4,107,000
                                                                                                                                                                                      IMPROVEMENTS" FOR DETAIL
5700      Capital Outlays                                   -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
                                          $     2,887,852       $       156,924       $     2,330,181                                                   6%
                                                                                                            $   3,915,000     $    237,639                          $    4,107,000
                                          $     4,692,659       $     1,266,969       $     4,579,028                                                   8%
                                                                                                            $   6,076,482     $    529,115                          $    6,256,482


                                          $       272,846       $       359,157       $       566,001
        Available Fund Balance - EOY                                                                        $   1,256,941     $   2,338,971                         $      926,883
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                    Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                              Actual 2009                                 Actual 2011                                                                                             Comments
                                                                    (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



203     Local Streets Fund
                                          $       396,406       $       134,437       $       180,480
        Available Fund Balance - BOY                                                                        $    387,904      $    663,340                          $      663,340


        Means of Financing
         Special assessments              $        92,657       $        31,887       $       138,025       $      75,000     $                -                    $       75,000
         Federal & state grants                   215,000                         -                     -                 -                    -                                  -
         Metro act fees                           145,169               148,668               136,731            145,000                       -                           145,000
         State shared revenue                     619,263               312,201               624,694            585,998            60,166                                 585,998
         Interest income                           20,955                22,171                29,411              20,000               433                                 20,000

         Operating transfers in                   512,624               340,000               880,000                                                                      480,000 FROM GENERAL FUND
                                                                                                                 480,000           120,000

         Other                                      2,667                41,285               197,011              15,000                      -                            15,000
                                          $     1,608,335       $       896,212       $     2,005,872       $   1,320,998     $    180,599                          $    1,320,998


60900   Operating Expenditures
5100      Salaries & Benefits             $       661,735       $       321,827       $       516,349                                                  21%
                                                                                                            $    478,203      $    100,954                          $      478,203
5200      Operating Supplies                      135,883                41,694               115,192                                                  11%
                                                                                                                 118,000            13,520                                 118,000
5300      Contractual Services                    773,321               437,800               704,173                                                  16%
                                                                                                                 879,687           136,499                                 879,687
5400      Other Expenses                              242                 2,198                 2,669                                                   0%
                                                                                                                      100                      -                               100
5700      Capital Outlays                                   -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5900      Other Financing Uses                              -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
                                          $     1,571,181       $       803,519       $     1,338,383                                                  17%
                                                                                                            $   1,475,990     $    250,973                          $    1,475,990


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -

                                                                                                                                                                                      SEE "BUDGETED CAPITAL
5300      Contractual Services                    299,123                46,650               184,629                                                  30%
                                                                                                                   55,000           16,566                                  55,000
                                                                                                                                                                                      IMPROVEMENTS" FOR DETAIL

                                          $       299,123       $        46,650       $       184,629                                                  30%
                                                                                                            $      55,000     $     16,566                          $       55,000
                                          $     1,870,304       $       850,169       $     1,523,012                                                  17%
                                                                                                            $   1,530,990     $    267,539                          $    1,530,990


                                          $       134,437       $       180,480       $       663,340
        Available Fund Balance - EOY                                                                        $    177,912      $    576,400                          $      453,348
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                             Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                       Actual 2009                                 Actual 2011                                                                                 Comments
                                                                             (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012




257     Budget Stabilization Fund
                                                   $     2,000,000       $     1,500,000       $     1,500,000
        Available Fund Balance - BOY                                                                                 $   1,500,000     $   1,500,000                         $    1,500,000


        Means of Financing
         Special assessments                       $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                      -                     -                     -                 -                    -                                  -
         State shared revenue                                        -                     -                     -                 -                    -                                  -
         Charges for services                                        -                     -                     -                 -                    -                                  -
         Interest income                                             -                     -                     -                 -                    -                                  -
         Operating transfers in - General Fund                       -                     -                     -                 -                    -                                  -
         Operating transfers in - TIFA Fund                          -                     -                     -                 -                    -                                  -
         Operating transfers in - Insurance Fund                     -                     -                     -                 -                    -                                  -

         Other                                                       -                     -                     -                 -                    -                                  -

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


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5200      Operating Supplies                                         -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5400      Other Expenses                                             -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5700      Capital Outlays                                            -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -

5900      Other Financing Uses                             500,000                         -                     -                                              N/A
                                                                                                                                   -                    -                                  -

                                                   $       500,000       $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
                                                   $       500,000       $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -


                                                   $     1,500,000       $     1,500,000       $     1,500,000
        Available Fund Balance - EOY                                                                                 $   1,500,000     $   1,500,000                         $    1,500,000
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                             Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                       Actual 2009                                 Actual 2011                                                                                 Comments
                                                                             (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



264     Criminal Forfeitures Fund
                                                   $        81,856       $       140,640       $       134,116
        Available Fund Balance - BOY                                                                                 $    104,716      $    140,828                          $      140,828


        Means of Financing
         Special assessments                       $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                      -                     -                     -                 -                    -                                  -
         State shared revenue                                        -                     -                     -                 -                    -                                  -
         Charges for services                                        -                     -                     -                 -                    -                                  -
         Interest income                                       881                   615                   688                 500               171                                    500
         Operating transfers in - General Fund                       -                     -                     -                 -                    -                                  -
         Operating transfers in - TIFA Fund                          -                     -                     -                 -                    -                                  -
         Operating transfers in - Insurance Fund                     -                     -                     -                 -                    -                                  -
         Other                                              62,406                   500                14,380              10,000           13,656                                  10,000
                                                   $        63,287       $         1,115       $        15,068       $      10,500     $     13,827                          $       10,500


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5200      Operating Supplies                                         -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5300      Contractual Services                                       -                     -                     -                                               0%
                                                                                                                            45,000                      -                            45,000
5400      Other Expenses                                             -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5700      Capital Outlays                                    4,503                 7,639                 8,356                                                  N/A
                                                                                                                                   -                    -                                  -
5900      Other Financing Uses                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $         4,503       $         7,639       $         8,356                                                   0%
                                                                                                                     $      45,000     $                -                    $       45,000


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
                                                   $         4,503       $         7,639       $         8,356                                                   0%
                                                                                                                     $      45,000     $                -                    $       45,000


                                                   $       140,640       $       134,116       $       140,828
        Available Fund Balance - EOY                                                                                 $      70,216     $    154,655                          $      106,328
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                             Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                       Actual 2009                                 Actual 2011                                                                                 Comments
                                                                             (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



285     Tree Replacement Fund
                                                   $        10,043       $         8,590       $         5,436
        Available Fund Balance - BOY                                                                                 $       3,486     $       5,119                         $        5,119


        Means of Financing
         Special assessments                       $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                      -                     -                     -           2,000                      -                             2,000
         State shared revenue                                        -                     -                     -                 -                    -                                  -
         Charges for services                                        -                     -                     -                 -                    -                                  -
         Interest income                                         73                    46                    24                  50                 6                                    50
         Operating transfers in - General Fund                       -                     -                     -                 -                    -                                  -
         Operating transfers in - TIFA Fund                          -                     -                     -                 -                    -                                  -
         Operating transfers in - Insurance Fund                     -                     -                     -                 -                    -                                  -
         Other                                               1,600                         -                     -                 -                    -                                  -
                                                   $         1,673       $             46      $             24      $       2,050     $            6                        $        2,050


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5200      Operating Supplies                                 3,126                 3,200                   341                                                   0%
                                                                                                                             2,000                      -                             2,000
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5400      Other Expenses                                             -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5700      Capital Outlays                                            -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5900      Other Financing Uses                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $         3,126       $         3,200       $           341                                                   0%
                                                                                                                     $       2,000     $                -                    $        2,000


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
                                                   $         3,126       $         3,200       $           341                                                   0%
                                                                                                                     $       2,000     $                -                    $        2,000


                                                   $         8,590       $         5,436       $         5,119
        Available Fund Balance - EOY                                                                                 $       3,536     $       5,125                         $        5,169
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                             Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                       Actual 2009                                 Actual 2011                                                                                         Comments
                                                                             (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



295     Brownfield Redevelopment Authority (Betten Project)
                                                   $       (17,862) $            (10,214) $             (9,217) $
        Available Fund Balance - BOY                                                                                           316     $     65,349                          $       65,349


        Means of Financing
         Property taxes                            $         9,951       $        15,917       $        74,483       $    142,409      $                -                    $      142,409
         Federal & state grants                                      -                     -                     -                 -                    -                                  -
         State shared revenue                                        -                     -                     -                 -                    -                                  -
         Charges for services                                        -                     -                     -                 -                    -                                  -
         Interest income                                             -                     -                 83                    -              33                                       -
         Operating transfers in - General Fund                       -                     -                     -                 -                    -                                  -
         Operating transfers in - TIFA Fund                          -                     -                     -                 -                    -                                  -
         Operating transfers in - Insurance Fund                     -                     -                     -                 -                    -                                  -
         Other                                                       -                     -                     -                 -                    -                                  -
                                                   $         9,951       $        15,917       $        74,566       $    142,409      $          33                         $      142,409


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5200      Operating Supplies                                         -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5300      Contractual Services                               2,303                14,920                         -                                              30%
                                                                                                                          100,000            29,605                                 100,000
5400      Other Expenses                                             -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5700      Capital Outlays                                            -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5900      Other Financing Uses                                       -                     -                     -                                               0%                  33,424 BROWNFIELD LOAN PAYMENT
                                                                                                                            33,424                      -
                                                   $         2,303       $        14,920       $                 -                                              22%
                                                                                                                     $    133,424      $     29,605                          $      133,424


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
                                                   $         2,303       $        14,920       $                 -                                              22%
                                                                                                                     $    133,424      $     29,605                          $      133,424


                                                   $       (10,214) $             (9,217) $             65,349
        Available Fund Balance - EOY                                                                                 $       9,301     $     35,777                          $       74,334
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                           Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                     Actual 2009                                 Actual 2011                                                                                            Comments
                                                                           (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



290     Local Development Finance Authority III Fund - Edison Landing (Smartzone)
                                                 $         8,752       $        13,765       $        36,834
        Available Fund Balance - BOY                                                                               $      20,994     $     21,348                          $       21,348


        Means of Financing
         Property taxes                          $        91,281       $        71,360       $        84,658       $      83,405     $                -                    $       83,405
         Federal & state grants                                    -                     -           100,000                     -                    -                                  -
         State shared revenue                                      -                     -                     -                 -                    -                                  -
         Charges for services                                      -                     -                     -                 -                    -                                  -
         Interest income                                     180                   133                   153                 150                47                                    150
         Operating transfers in - General Fund           120,000                50,000                75,000            100,000            25,000                                 100,000
                                                                                                                                                                                             COMMUNITY FOUNDATION
         Other                                            75,000                         -                     -          75,000                      -                            75,000
                                                                                                                                                                                             CONTRIBUTION
                                                 $       286,461       $       121,493       $       259,811       $    258,555      $     25,047                          $      258,555


70805   Operating Expenditures
5100      Salaries & Benefits                    $                 -   $                 -   $                 -                                              N/A
                                                                                                                   $             -   $                -                    $             -
5200      Operating Supplies                                       -                     -                     -                                              N/A
                                                                                                                                 -                    -                                  -
5300      Contractual Services                             1,700                         -                     -                                               0%
                                                                                                                             500                      -                               500
5400      Other Expenses                                           -                     -                     -                                              N/A
                                                                                                                                 -                    -                                  -
5700      Capital Outlays                                          -                     -                     -                                              N/A
                                                                                                                                 -                    -                                  -
5900      Other Financing Uses                           279,748                98,424               275,297                                                   0%                 272,197 DEBT SERVICE SZ BONDS
                                                                                                                        272,197                       -
                                                 $       281,448       $        98,424       $       275,297                                                   0%
                                                                                                                   $    272,697      $                -                    $      272,697


90000   Project Expenditures
5200      Operating Supplies                     $                 -   $                 -   $                 -                                              N/A
                                                                                                                   $             -   $                -                    $             -
5300      Contractual Services                                     -                     -                     -                                              N/A
                                                                                                                                 -                    -                                  -
                                                 $                 -   $                 -   $                 -                                              N/A
                                                                                                                   $             -   $                -                    $             -
                                                 $       281,448       $        98,424       $       275,297                                                   0%
                                                                                                                   $    272,697      $                -                    $      272,697


                                                 $        13,765       $        36,834       $        21,348
        Available Fund Balance - EOY                                                                               $       6,852     $     46,395                          $        7,206
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                             Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                       Actual 2009                                 Actual 2011                                                                                         Comments
                                                                             (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



305     Tax Increment Finance Authority Fund
                                                   $        13,983       $        21,789       $        37,533
        Available Fund Balance - BOY                                                                                 $      16,502     $     16,445                          $       16,445

        Means of Financing
         Property taxes                            $        67,664       $        40,634       $        53,769       $      53,042     $                -                    $       53,042
         Federal & state grants                                      -                     -                     -                 -                    -                                  -
         State shared revenue                                        -                     -                     -                 -                    -                                  -
         Charges for services                                        -                     -                     -                 -                    -                                  -
         Interest income                                       142                   110                   143                 200                29                                    200
         Operating transfers in - General Fund                       -                     -                     -                 -                    -                                  -
         Operating transfers in - TIFA Fund                          -                     -                     -                 -                    -                                  -
         Operating transfers in - Insurance Fund                     -                     -                     -                 -                    -                                  -
         Other                                                       -                     -                     -                 -                    -                                  -
                                                   $        67,806       $        40,744       $        53,912       $      53,242     $          29                         $       53,242


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5200      Operating Supplies                                         -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5400      Other Expenses                                             -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5700      Capital Outlays                                            -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -

5900      Other Financing Uses                              60,000                25,000                75,000                                                  25%                  50,000 TO GENERAL FUND FOR ARENA
                                                                                                                            50,000           12,500

                                                   $        60,000       $        25,000       $        75,000                                                  25%
                                                                                                                     $      50,000     $     12,500                          $       50,000


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
                                                   $        60,000       $        25,000       $        75,000                                                  25%
                                                                                                                     $      50,000     $     12,500                          $       50,000


                                                   $        21,789       $        37,533       $        16,445
        Available Fund Balance - EOY                                                                                 $      19,744     $       3,974                         $       19,687
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                             Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                       Actual 2009                                 Actual 2011                                                                                          Comments
                                                                             (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012

394     Downtown Development Authority Fund
                                                   $        14,618       $       289,526       $       329,585
        Available Fund Balance - BOY                                                                                 $    261,431      $    272,145                          $      272,145


        Means of Financing
         Property taxes                            $       614,632       $       327,373       $       281,424       $    303,155      $                -                    $      303,155
         Federal & state grants                                      -                     -                     -                 -                    -                                  -
         State proposal A reimbursement revenue                      -                     -                     -                 -                    -                                  -
         Charges for services                                        -                     -                     -                 -                    -                                  -
         Interest income                                       999                 1,212                 1,716                 500               375                                    500
         Operating transfers in - General Fund                       -                     -                     -                 -                    -                                  -
         Operating transfers in - PIF                                -                     -                     -                 -                    -                                  -
         Operating transfers in - Insurance Fund                     -                     -                     -                 -                    -                                  -
         Other                                                       -                     -                     -                 -                    -                                  -
                                                   $       615,631       $       328,585       $       283,140       $    303,655      $         375                         $      303,655


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5200      Operating Supplies                                         -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5300      Contractual Services                                       -               600                         -                                               0%
                                                                                                                               250                      -                               250
5400      Other Expenses                                             -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
5700      Capital Outlays                                            -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -

5900      Other Financing Uses                             340,723               287,926               340,580                                                   0%                 329,462 DEBT SERVICE DDA BONDS
                                                                                                                          329,462                571

                                                   $       340,723       $       288,526       $       340,580                                                   0%
                                                                                                                     $    329,712      $         571                         $      329,712


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
5300      Contractual Services                                       -                     -                     -                                              N/A
                                                                                                                                   -                    -                                  -
                                                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                     $             -   $                -                    $             -
                                                   $       340,723       $       288,526       $       340,580                                                   0%
                                                                                                                     $    329,712      $         571                         $      329,712


                                                   $       289,526       $       329,585       $       272,145
        Available Fund Balance - EOY                                                                                 $    235,374      $    271,949                          $      246,088
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                    Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                              Actual 2009                                 Actual 2011                                                                                 Comments
                                                                    (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



408     Arena Improvement Fund
                                          $       103,279       $        71,024       $        72,251
        Available Fund Balance - BOY                                                                        $       7,051     $         779                         $          779


        Means of Financing
         Special assessments              $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                             -                     -                     -                 -                    -                                  -
         State shared revenue                               -                     -                     -                 -                    -                                  -
         Charges for services                      37,686                22,779                18,637              25,000                85                                 25,000
         Interest income                              734                   446                   217                 200                42                                    200
         Operating transfers in                             -                     -                     -                 -                    -                                  -
         Other                                              -                     -           135,500                     -         23,400                                        -
                                          $        38,420       $        23,225       $       154,354       $      25,200     $     23,527                          $       25,200


30906   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5200      Operating Supplies                                -                     -                     -                                              N/A
5300      Contractual Services                     70,675                17,294                         -                                              N/A
                                                                                                                          -                    -                                  -
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5700      Capital Outlays                                   -                     -           225,826                                                  N/A
                                                                                                                          -                    -                                  -
5900      Other Financing Uses                              -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
                                          $        70,675       $        17,294       $       225,826                                                  N/A
                                                                                                            $             -   $                -                    $             -


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5300      Contractual Services                              -             4,704                         -                                              N/A
                                                                                                                          -         23,400                                        -
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5900      Other Financing Uses                              -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
                                          $                 -   $         4,704       $                 -                                              N/A
                                                                                                            $             -   $     23,400                          $             -
                                          $        70,675       $        21,998       $       225,826                                                  N/A
                                                                                                            $             -   $     23,400                          $             -


                                          $        71,024       $        72,251       $           779
        Available Fund Balance - EOY                                                                        $      32,251     $         906                         $       25,979
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                    Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                              Actual 2009                                 Actual 2011                                                                                             Comments
                                                                    (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



403     Sidewalk Improvement Fund
                                          $       989,494       $       819,083       $       631,995
        Available Fund Balance - BOY                                                                        $    670,597      $    665,541                          $      665,541


        Means of Financing
         Special assessments              $       109,431       $         5,116       $        75,715       $      75,000     $                -                    $       75,000
         Federal & state grants                             -                     -                     -                 -                    -                                  -
         State shared revenue                               -                     -                     -                 -                    -                                  -
         Charges for services                               -                     -                     -                 -                    -                                  -
         Interest income                           27,514                19,395                13,597              15,000               814                                 15,000
         Operating transfers in                             -                     -                     -                 -                    -                                  -
         Other                                              -                     -           100,000                     -                    -                                  -
                                          $       136,945       $        24,511       $       189,312       $      90,000     $         814                         $       90,000


30906   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5200      Operating Supplies                                -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5300      Contractual Services                      2,275                         -                     -                                              N/A
                                                                                                                          -                    -                                  -
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5700      Capital Outlays                                   -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -

                                                                                                                                                                                      DEBT SERVICE ON SIDEWALK
5900      Other Financing Uses                    303,684               209,303               155,766                                                   0%
                                                                                                                 151,705                       -                           151,705
                                                                                                                                                                                      ASSESSMENT BONDS

                                          $       305,959       $       209,303       $       155,766                                                   0%
                                                                                                            $    151,705      $                -                    $      151,705


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5300      Contractual Services                      1,397                 2,296                         -                                              N/A
                                                                                                                          -                    -                                  -
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                                                       -
5900      Other Financing Uses                              -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
                                          $         1,397       $         2,296       $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
                                          $       307,356       $       211,599       $       155,766                                                   0%
                                                                                                            $    151,705      $                -                    $      151,705


                                          $       819,083       $       631,995       $       665,541
        Available Fund Balance - EOY                                                                        $    608,892      $    666,355                          $      603,836
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                    Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                              Actual 2009                                 Actual 2011                                                                                 Comments
                                                                    (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



404     Public Improvement Fund
                                          $     1,985,126       $     1,319,726       $       696,631
        Available Fund Balance - BOY                                                                        $    449,277      $    551,506                          $      551,506


        Means of Financing
         Special assessments              $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Property taxes                                     -                     -                     -                 -                    -                                  -
         Federal & state grants                             -                     -                     -                 -                    -                                  -
         Charges for services                     100,075                48,211                94,428                     -                    -                                  -
         Sales of Property                         13,201                     31                4,817               5,000                      -                             5,000
         Interest income                           16,140                 8,556                 6,974               7,500             1,367                                  7,500


         Operating transfers in                    14,216                         -                     -                 -                    -                                  -


         Other                                        486                         -            60,377                     -         37,535                                        -

                                          $       144,118       $        56,798       $       166,596       $      12,500     $     38,902                          $       12,500


30936   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5200      Operating Supplies                                -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5300      Contractual Services                              -                     -                     -                                               0%
                                                                                                                    5,000                      -                             5,000
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5700      Capital Outlays                                   -                     -           109,292                                                  N/A
                                                                                                                          -                    -                                  -


5900      Other Financing Uses                    569,523               121,001               202,429                                                  N/A
                                                                                                                                               -


                                          $       569,523       $       121,001       $       311,721                                                   0%
                                                                                                            $       5,000     $                -                    $        5,000


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5300      Contractual Services                              -                     -                     -                                              96%
                                                                                                                          -         22,116                                  23,000
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -

5700      Capital Outlays                         239,995               558,892                         -                                              81%
                                                                                                                          -         16,204                                  20,000

                                          $       239,995       $       558,892       $                 -                                              89%
                                                                                                            $             -   $     38,320                          $       43,000
                                          $       809,518       $       679,893       $       311,721                                                  80%
                                                                                                            $       5,000     $     38,320                          $       48,000


                                          $     1,319,726       $       696,631       $       551,506
        Available Fund Balance - EOY                                                                        $    456,777      $    552,088                          $      516,006
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                    Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                              Actual 2009                                 Actual 2011                                                                                             Comments
                                                                    (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



482     State Grants Fund
                                          $       649,547       $       599,175       $       500,140
        Available Fund Balance - BOY                                                                        $    294,369      $    237,439                          $      237,439


        Means of Financing
         Special assessments              $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                   175,689               217,405               462,517            315,000           135,220                                 315,000
         Sales of Property                                  -                     -                     -                 -                    -                                  -
         Interest income                                    -                 38                  613                     -             270                                       -
                                                                                                                                                                                      FROM PUBLIC IMPROVEMENT FUND
         Operating transfers in                             -                     -                     -                 -                    -                                  -
                                                                                                                                                                                      FOR SMITH RYERSON

         Other                                      6,307                         -           237,104                     -                    -                                  -

                                          $       181,996       $       217,443       $       700,234       $    315,000      $    135,490                          $      315,000



30936   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5200      Operating Supplies                                -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5300      Contractual Services                              -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5400      Other Expenses                                    -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
5700      Capital Outlays                                   -                     -           634,622                                                  N/A
                                                                                                                          -                    -                                  -
5900      Other Financing Uses                     16,840                         -           328,313                                                  N/A
                                                                                                                          -                    -                                  -

                                          $        16,840       $                 -   $       962,935                                                  N/A
                                                                                                            $             -   $                -                    $             -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                 -                                              N/A
                                                                                                            $             -   $                -                    $             -
5300      Contractual Services                              -                     -                     -                                              N/A
                                                                                                                          -                    -                                  -
                                                                                                                                                                                      SEE "BUDGETED CAPITAL
5700      Capital Outlays                         215,528               316,478                         -                                               0%
                                                                                                                 315,000                642                                315,000
                                                                                                                                                                                      IMPROVEMENTS" FOR DETAIL
                                          $       215,528       $       316,478       $                 -                                               0%
                                                                                                            $    315,000      $         642                         $      315,000

                                          $       232,368       $       316,478       $       962,935                                                   0%
                                                                                                            $    315,000      $         642                         $      315,000



                                          $       599,175       $       500,140       $       237,439
        Available Fund Balance - EOY                                                                        $    294,369      $    372,287                          $      237,439
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                            Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                      Actual 2009                                 Actual 2011                                                                                 Comments
                                                                            (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



594     Marina & Launch Ramp Fund
                                                  $        85,238       $       149,996       $       217,556
        Available Cash Balance - BOY                                                                                $    301,056      $    243,852                          $      243,852

        Means of Financing
         Special assessments                      $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                     -                     -                     -                 -                    -                                  -
         State shared revenue                                       -                     -                     -                 -                    -                                  -
         Charges for services                             246,565               155,059               184,394            260,000            48,496                                 260,000
         Interest income                                      763                   745                         -                 -             294                                       -

         Operating transfers in                                     -             3,760                         -                 -                    -                                  -

         Other                                                669                 1,709                 9,917                     -           1,655                                       -
                                                  $       247,997       $       161,273       $       194,311       $    260,000      $     50,445                          $      260,000


70756   Operating Expenditures - Marina
5100      Salaries & Benefits                     $        80,164       $        33,715       $        46,085                                                   1%
                                                                                                                    $      46,822     $         251                         $       46,822
5200      Operating Supplies                                5,992                 7,328                 7,200                                                   7%
                                                                                                                           10,600               705                                 10,600
5300      Contractual Services                             80,619                45,158               109,504                                                  38%
                                                                                                                         124,354            47,302                                 124,354
5400      Other Expenses                                            -                     -                     -                                               0%
                                                                                                                              100                      -                               100
5700      Capital Outlays                                  12,217                         -             5,806                                                   0%
                                                                                                                            7,800                (13)                                7,800
5900      Other Financing Uses                                      -                     -             4,345                                                  N/A
                                                                                                                                  -                    -                                  -
          Other Cash Uses (e.g. Debt Principal)            (5,820)                        -                     -                                              N/A
                                                                                                                                  -                    -                                  -
                                                  $       173,172       $        86,201       $       172,940                                                  25%
                                                                                                                    $    189,676      $     48,245                          $      189,676


70759   Operating Expenditures - Ramps
5100      Salaries & Benefits                     $         1,303       $           190       $                 -                                               0%
                                                                                                                    $       2,500     $                -                    $        2,500
5200      Operating Supplies                                  420                 1,189                   593                                                   0%
                                                                                                                              500                      -                               500
5300      Contractual Services                              8,344                 6,133                 4,426                                                  23%
                                                                                                                            9,580             2,209                                  9,580
5400      Other Expenses                                            -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
5700      Capital Outlays                                           -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
5900      Other Financing Uses                                      -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
          Other Cash Uses (e.g. Debt Principal)                     -                     -            (9,944)                                                 N/A
                                                                                                                                  -                    -                                  -
                                                  $        10,067       $         7,512       $        (4,925) $                                               18%
                                                                                                                           12,580     $       2,209                         $       12,580

90000   Project Expenditures
5200       Operating Supplies                     $                 -   $                 -   $                 -                                              N/A
                                                                                                                    $             -   $                -                    $             -
5300      Contractual Services                                      -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
5700      Capital Outlays                                           -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
                                                  $                 -   $                 -   $                 -                                              N/A
                                                                                                                    $             -   $                -                    $             -
                                                  $       183,239       $        93,713       $       168,015                                                  25%
                                                                                                                    $    202,256      $     50,454                          $      202,256


                                                  $       149,996       $       217,556       $       243,852
        Available Cash Balance - EOY                                                                                $    358,800      $    243,843                          $      301,596
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                            Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                      Actual 2009                                 Actual 2011                                                                                             Comments
                                                                            (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



661     Equipment Fund
                                                  $     2,472,676       $     2,519,442       $     2,755,881
        Available Cash Balance - BOY                                                                                $   2,468,665     $   2,880,251                         $    2,880,251


        Means of Financing
         Special assessments                      $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                     -                     -                     -                 -                    -                                  -
         State shared revenue                                       -                     -                     -                 -                    -                                  -
         Charges for services                           2,178,851             1,204,803             2,211,835                                                                                 INTERDEPARTMENTAL CHARGES
                                                                                                                        2,300,000          375,155                               2,300,000
         Interest income                                   19,495                13,150                13,822              25,000             3,422                                 25,000
         Operating transfers in                                     -                     -                     -                 -                    -                                  -
         Other                                            151,690                67,112                96,411            100,000            39,389                                 100,000
                                                  $     2,350,036       $     1,285,065       $     2,322,068       $   2,425,000     $    417,966                          $    2,425,000


60932   Operating Expenditures
5100      Salaries & Benefits                     $       591,154       $       198,819       $       392,338                                                  30%
                                                                                                                    $    412,262      $    122,035                          $      412,262
5200      Operating Supplies                              746,316               352,010               833,310                                                   9%
                                                                                                                         934,000            82,477                                 934,000
5300      Contractual Services                            474,054               368,421               643,677                                                  21%
                                                                                                                         757,317           157,245                                 757,317
5400      Other Expenses                                    1,013                     37                  352                                                   0%
                                                                                                                            1,000                      -                             1,000
                                                                                                                                                                                              SEE "BUDGETED CAPITAL
5700      Capital Outlays                                 446,354                45,518               372,756                                                  71%
                                                                                                                         607,400           431,825                                 607,400
                                                                                                                                                                                              IMPROVEMENTS" FOR DETAIL
5900      Other Financing Uses                                      -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
          Other Cash Uses (e.g. Debt Principal)            44,379                83,821               (44,735)                                                 N/A
                                                                                                                                  -                    -                                  -
                                                  $     2,303,270       $     1,048,626       $     2,197,698                                                  29%
                                                                                                                    $   2,711,979     $    793,582                          $    2,711,979


90000   Project Expenditures
5200      Operating Supplies                      $                 -   $                 -   $                 -                                              N/A
                                                                                                                    $             -   $                -                    $             -
5300      Contractual Services                                      -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
5700      Capital Outlays                                           -                     -                     -                                              N/A
                                                                                                                                  -                    -                                  -
                                                  $                 -   $                 -   $                 -                                              N/A
                                                                                                                    $             -   $                -                    $             -
                                                  $     2,303,270       $     1,048,626       $     2,197,698                                                  29%
                                                                                                                    $   2,711,979     $    793,582                          $    2,711,979


                                                  $     2,519,442       $     2,755,881       $     2,880,251
        Available Cash Balance - EOY                                                                                $   2,181,686     $   2,504,635                         $    2,593,272
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                          Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                    Actual 2009                                 Actual 2011                                                                                            Comments
                                                                          (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



642     Public Service Building Fund
                                                $       474,631       $       513,578       $       444,931
        Available Cash Balance - BOY                                                                              $    160,371      $    268,058                          $      268,058


        Means of Financing
         Special assessments                    $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                   -                     -                     -                 -                    -                                  -
         State shared revenue                                     -                     -                     -                 -                    -                                  -
         Charges for services                           610,873               484,670               769,340                                                                                 INTERDEPARTMENTAL CHARGES
                                                                                                                       969,340           242,335                                 969,340
         Interest income                                  3,804                 2,570                 2,214               6,000               446                                  6,000
         Operating transfers in                                   -                     -                     -                 -                    -                                  -
         Other                                                    -                     -                 68                    -                    -                                  -
                                                $       614,677       $       487,240       $       771,622       $    975,340      $    242,781                          $      975,340


60442   Operating Expenditures
5100      Salaries & Benefits                   $       266,246       $       429,395       $       637,792                                                  27%
                                                                                                                  $    547,811      $    150,425                          $      547,811
5200      Operating Supplies                             28,229                10,221                12,278                                                   5%
                                                                                                                         26,400             1,369                                 26,400
5300      Contractual Services                          243,486               115,637               231,099                                                  11%
                                                                                                                       301,101            32,183                                 301,101
5400      Other Expenses                                  8,200                 9,754                14,507                                                 1371%
                                                                                                                            500             6,853                                    500
5700      Capital Outlays                                 6,907                 2,114                         -                                               0%
                                                                                                                         19,500                65                                 19,500
5900      Other Financing Uses                                    -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
        Other Cash Uses and Adjustments (e.g.
                                                         22,662               (14,248)              (20,346)                                                 N/A
                                                                                                                                -                    -                                  -
        Debt Principal)
                                                $       575,730       $       552,873       $       875,330                                                  21%
                                                                                                                  $    895,312      $    190,895                          $      895,312


90000   Project Expenditures
5200      Operating Supplies                    $                 -   $                 -   $                 -                                              N/A
                                                                                                                  $             -   $                -                    $             -
5300      Contractual Services                                    -             3,014                73,165                                                  N/A
                                                                                                                                -                    -                                  -
5700      Capital Outlays                                         -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
                                                $                 -   $         3,014       $        73,165                                                  N/A
                                                                                                                  $             -   $                -                    $             -
                                                $       575,730       $       555,887       $       948,495                                                  21%
                                                                                                                  $    895,312      $    190,895                          $      895,312


                                                $       513,578       $       444,931       $       268,058
        Available Cash Balance - EOY                                                                              $    240,399      $    319,944                          $      348,086
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                          Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                    Actual 2009                                 Actual 2011                                                                                            Comments
                                                                          (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



643     Engineering Services Fund
                                                $       132,074       $       (48,336) $            (98,892) $
        Available Cash Balance - BOY                                                                                    (14,992) $        (93,420)                        $      (93,420)


        Means of Financing
         Special assessments                    $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                   -                     -                     -                 -                    -                                  -
         State shared revenue                                     -                     -                     -                 -                    -                                  -
         Charges for services                           451,132               177,438               410,022                                                                                 INTERDEPARTMENTAL CHARGES
                                                                                                                       459,506           119,992                                 459,506
         Interest income                                    606                   103                         -                 -                    -                                  -
         Operating transfers in                                   -                     -                     -                 -                    -                                  -
         Other                                           23,312                   126               128,631              25,000             6,806                                 25,000
                                                $       475,050       $       177,667       $       538,653       $    484,506      $    126,798                          $      484,506


60447   Operating Expenditures
5100      Salaries & Benefits                   $       450,038       $       140,911       $       298,948                                                  28%
                                                                                                                  $    299,804      $     84,650                          $      299,804
5200      Operating Supplies                              8,918                 5,313                 6,021                                                   6%
                                                                                                                         11,230               701                                 11,230
5300      Contractual Services                          135,994                63,729               128,256                                                  20%
                                                                                                                       138,320            27,047                                 138,320
5400      Other Expenses                                    286                 2,085                   179                                                   0%
                                                                                                                          1,000                      -                             1,000
5700      Capital Outlays                                 7,973                 3,994                 5,406                                                   8%
                                                                                                                          7,700               608                                  7,700
5900       Other Financing Uses                                   -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
        Other Cash Uses and Adjustments (e.g.
                                                         16,159                 9,979                61,714                                                  N/A
                                                                                                                                -                    -                                  -
        Debt Principal)
                                                $       619,368       $       226,011       $       500,524                                                  25%
                                                                                                                  $    458,054      $    113,006                          $      458,054


90000   Project Expenditures
5200      Operating Supplies                    $                 -   $                 -   $                 -                                              N/A
                                                                                                                  $             -   $                -                    $             -
5300      Contractual Services                           36,092                 2,212                32,657                                                  N/A
                                                                                                                                -           6,043                                       -
5700      Capital Outlays                                         -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
                                                $        36,092       $         2,212       $        32,657                                                  N/A
                                                                                                                  $             -   $       6,043                         $             -
                                                $       655,460       $       228,223       $       533,181                                                  26%
                                                                                                                  $    458,054      $    119,049                          $      458,054


                                                $       (48,336) $            (98,892) $            (93,420) $
        Available Cash Balance - EOY                                                                                     11,460     $     (85,671)                        $      (66,968)
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                          Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                    Actual 2009                                 Actual 2011                                                                                             Comments
                                                                          (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012



677     General Insurance Fund
                                                $     1,236,014       $     1,339,236       $     1,535,902
        Available Cash Balance - BOY                                                                              $   1,484,748     $   1,420,174                         $    1,420,174


        Means of Financing
         Special assessments                    $                 -   $                 -   $                 -   $             -   $                -                    $             -
         Federal & state grants                                   -                     -                     -                 -                    -                                  -
         State shared revenue                                     -                     -                     -                 -                    -                                  -
         Charges for services                         4,260,731             2,116,365             3,770,919                                                                                 INTERDEPARTMENTAL CHARGES
                                                                                                                      2,864,118          815,766                               2,864,118
         Interest income                                  5,257                 4,577                 6,057              10,000             1,526                                 10,000
         MERS Retireee Health Reimbursement                       -                     -                     -        840,000           119,341                                 840,000
         Medicare Part D Rx Reimbursement                         -                     -                     -          35,000                      -                            35,000
         Repayment of DDA Advance                                 -                     -                     -                 -                    -                                  -
                                                                                                                                                                                            INTERFUND LOAN REPAYMENT -
         Operating transfers in                          28,046                14,023                28,046              28,046             7,011                                 28,046
                                                                                                                                                                                            ARENA IMPROVEMENTS
         Other                                            4,863                 6,038                11,081                     -         66,368                                        -
                                                $     4,298,897       $     2,141,003       $     3,816,103       $   3,777,164     $   1,010,012                         $    3,777,164


30851   Operating Expenditures
5100      Salaries & Benefits                   $        43,957       $                 -   $                 -                                              27%
                                                                                                                  $      32,502     $       8,825                         $       32,502
5200      Operating Supplies                              1,154                         -                     -                                              N/A
                                                                                                                                -             138                                       -
5300      Contractual Services                        4,215,551             1,944,337             4,099,156                                                  22%
                                                                                                                      3,704,118          808,792                               3,704,118
5400      Other Expenses                                  1,141                         -                     -                                               0%
                                                                                                                          1,500                      -                             1,500

5700      Capital Outlays                                 1,915                         -                     -                                              13%
                                                                                                                          2,000               250                                  2,000

5900       Other Financing Uses                          77,744                         -                     -                                              N/A
                                                                                                                                -                    -                                  -
        Other Cash Uses and Adjustments (e.g.
                                                       (145,787)                        -          (167,325)                                                 N/A
                                                                                                                                -                    -                                  -
        Debt Principal)
                                                $     4,195,675       $     1,944,337       $     3,931,831                                                  22%
                                                                                                                  $   3,740,120     $    818,005                          $    3,740,120


90000   Project Expenditures
5200      Operating Supplies                    $                 -   $                 -   $                 -                                              N/A
                                                                                                                  $             -   $                -                    $             -
5300      Contractual Services                                    -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
5700      Capital Outlays                                         -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
                                                $                 -   $                 -   $                 -                                              N/A
                                                                                                                  $             -   $                -                    $             -
                                                $     4,195,675       $     1,944,337       $     3,931,831                                                  22%
                                                                                                                  $   3,740,120     $    818,005                          $    3,740,120


                                                $     1,339,236       $     1,535,902       $     1,420,174
        Available Cash Balance - EOY                                                                              $   1,521,792     $   1,612,181                         $    1,457,218
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                          Actual 2010                             Original Budget   Actual to Date       Actual As % of   Revised Budget
                                                    Actual 2009                                 Actual 2011                                                                                             Comments
                                                                          (Stub Year)                                 FY2012           FY2012               Revised       Estimate FY2012




590     Sewer Fund
                                                $      (249,387) $            521,480       $     1,585,879
        Available Cash Balance - BOY                                                                              $   2,448,376     $   3,320,219                         $    3,320,219

        Means of Financing
         Special assessments                    $             -       $             -       $             -       $           -     $          -                          $            -
         Federal & state grants                               -                     -                     -              10,000                -                                  10,000
         State shared revenue                                 -                     -                     -                   -                -                                       -
         Charges for services                         5,584,293             3,369,596             6,499,376           5,980,000          822,451                               5,980,000
         Interest income                                    597                 1,679                 9,822              15,000            2,960                                  15,000
         Repayment of DDA advance                             -                     -                     -                   -                -                                       -
         Operating transfers in                               -                     -                     -                   -                -                                       -
         Other                                          481,114                78,581               153,475             150,000            8,936                                 150,000
                                                $     6,066,004       $     3,449,856       $     6,662,673       $   6,155,000     $    834,347                          $    6,155,000

30548   Operating Expenditures Administration
5100      Salaries & Benefits                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                  $             -   $                -                    $             -
5200      Operating Supplies                                      -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
                                                                                                                                                                                            INSURANCE/INDIRECT
5300      Contractual Services                          363,113               188,402               332,732                                                  20%
                                                                                                                       332,055            67,066                                 332,055
                                                                                                                                                                                            COSTS/ADMINISTRATION FEE
5400      Other Expenses                                  5,087                 6,254                 2,158                                                  N/A
                                                                                                                                -              49                                       -
5700      Capital Outlays                                     -                     -                     -                                                  N/A
                                                                                                                                -               -                                       -
5900      Other Financing Uses                                -                     -                41,609                                                  N/A
                                                                                                                                -               -                                       -
        Other Cash Uses and Adjustments (e.g.
                                                                  -           (10,152)             (249,391)                                                 N/A
                                                                                                                                -                    -                                  -
        Debt Principal)
                                                $       368,200       $       184,504       $       127,108                                                  20%
                                                                                                                  $    332,055      $     67,115                          $      332,055

60559   Operating Expenditures Maintenance
5100      Salaries & Benefits                   $       728,753       $       239,245       $       472,593                                                  16%
                                                                                                                  $     647,726     $    106,755                          $      647,726
5200      Operating Supplies                             37,583                29,401                30,123                                                   4%
                                                                                                                         47,750            2,120                                  47,750
5300      Contractual Services                        3,863,907             1,866,171             4,011,555                                                   9%
                                                                                                                      4,546,078          398,915                               4,546,078
5400      Other Expenses                                      -                   600                   500                                                   0%
                                                                                                                          1,000                -                                   1,000
5700      Capital Outlays                                18,960                 1,520                 5,860                                                   0%
                                                                                                                         17,760                -                                  17,760
5900      Other Financing Uses                                -                     -                     -                                                  N/A
                                                                                                                              -                -                                       -
                                                $     4,649,203       $     2,136,937       $     4,520,631                                                  10%
                                                                                                                  $   5,260,314     $    507,790                          $    5,260,314

90000   Project Expenditures
5200       Operating Supplies                   $                 -   $                 -   $                 -                                              N/A
                                                                                                                  $             -   $                -                    $             -
                                                                                                                                                                                            SEE "BUDGETED CAPITAL
5300      Contractual Services                          277,734                64,016               280,594                                                  30%
                                                                                                                       400,000           118,845                                 400,000
                                                                                                                                                                                            IMPROVEMENTS" FOR DETAIL
5700      Capital Outlays                                         -                     -                     -                                              N/A
                                                                                                                                -                    -                                  -
                                                $       277,734       $        64,016       $       280,594                                                  30%
                                                                                                                  $    400,000      $    118,845                          $      400,000
                                                $     5,295,137       $     2,385,457       $     4,928,333                                                  12%
                                                                                                                  $   5,992,369     $    693,750                          $    5,992,369


                                                $       521,480       $     1,585,879       $     3,320,219
        Available Cash Balance - EOY                                                                              $   2,611,007     $   3,460,816                         $    3,482,850
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                          Actual 2010                             Original Budget   Actual to Date   Actual As % of   Revised Budget
                                                    Actual 2009                                 Actual 2011                                                                                         Comments
                                                                          (Stub Year)                                 FY2012           FY2012           Revised       Estimate FY2012

591     Water Fund
                                                $ 3,232,652           $ 2,301,294 $ 3,128,123 $ 2,868,744
        Available Cash Balance - BOY                                                                                                $ 3,585,169                       $    3,585,169


        Means of Financing
         Special assessments                    $                 -   $                 -   $                 -   $             -   $            -                    $             -
         Federal & state grants                                   -                     -                     -                 -                -                                  -
         State shared revenue                                     -                     -                     -                 -                -                                  -
         Charges for services - City                 2,967,961             1,564,652             3,025,327            3,155,000          456,944                           3,155,000
         Charges for services - Wholesale            2,281,977               989,519             1,906,772            2,120,000          340,210                           2,120,000
         Maintenance services - Township               162,300                88,858               178,393              170,000           64,703                             170,000
         Interest income                                22,483                13,566                13,025               20,000            2,948                              20,000
         Lease of facilities                           127,027                 71,402              143,269                                                                              LEASE OF SPACE ON WATER TOWERS
                                                                                                                       127,000            36,978                             127,000
         Repayment of DDA advance                                 -                     -                     -                 -                -                                  -
         Operating transfers in                                   -                     -                     -                 -                -                                  -
         Other                                         327,378               184,695               245,418                      -         30,103                                    -
                                                $ 5,889,126           $ 2,912,692 $ 5,512,204 $ 5,592,000                           $    931,886                      $    5,592,000


30548   Operating Expenditures Administration
5100       Salaries & Benefits                  $                 -   $                 -   $                 -                                          N/A
                                                                                                                  $             -   $            -                    $             -
5200       Operating Supplies                             4,155                 1,085                         -                                          N/A
                                                                                                                                -                -                                  -
                                                                                                                                                                                        INSURANCE/INDIRECT
5300       Contractual Services                        512,150               258,076               541,950                                               21%
                                                                                                                       536,007           112,133                             536,007
                                                                                                                                                                                        COSTS/ADMINISTRATION FEE
5400       Other Expenses                                 5,295                 7,960                         -                                           0%
                                                                                                                          2,000                  1                             2,000
5700       Capital Outlays                                        -                     -                     -                                          N/A
                                                                                                                                -                -                                  -
5900       Other Financing Uses                        567,463                          -          415,395                                               28%                 410,188 INTEREST ON WATER BONDS
                                                                                                                       410,188           114,073
        Other Cash Uses and Adjustments (e.g.
                                                     1,110,000               317,141             1,061,133                                                0%               1,230,000 PRINCIPAL ON WATER BONDS
                                                                                                                      1,230,000                  -
        Debt Principal)
                                                $ 2,199,063           $      584,262        $ 2,018,478                                                  10%
                                                                                                                  $ 2,178,195       $    226,207                      $    2,178,195


60559   Operating Expenditures Maintenance - City
5100       Salaries & Benefits                  $   972,743           $      420,828        $   816,927                                                  32%
                                                                                                                  $   768,795       $    244,788                      $      768,795
5200       Operating Supplies                     1,361,098                   48,567            190,809                                                  19%
                                                                                                                      160,260             30,727                             160,260
5300       Contractual Services                     368,258                  149,061            299,637                                                  19%
                                                                                                                      446,417             83,449                             446,417
5400       Other Expenses                            35,364                   29,769             66,107                                                  36%
                                                                                                                       53,230             19,000                              53,230
5700       Capital Outlays                            8,490                      906             11,531                                                   5%
                                                                                                                       16,500                835                              16,500
5900       Other Financing Uses                           -                        -                  -                                                  N/A
                                                                                                                            -                  -                                   -
                                                $ 2,745,953           $      649,131        $ 1,385,011                                                  26%
                                                                                                                  $ 1,445,202       $    378,799                      $    1,445,202

60558   Operating Expenditures Filtration
5100      Salaries & Benefits                   $   601,170           $      299,682        $   590,491                                                  23%
                                                                                                                  $   655,881       $    149,403                      $      655,881
5200      Operating Supplies                        238,676                   93,186            232,984                                                  16%
                                                                                                                      275,095             45,375                             275,095
5300      Contractual Services                      490,099                  246,943            433,967                                                  18%
                                                                                                                      615,970            108,164                             615,970
5400      Other Expenses                              1,384                      750              1,153                                                  18%
                                                                                                                        2,600                460                               2,600
5700      Capital Outlays                           126,309                   26,130            108,567                                                  16%
                                                                                                                       45,300              7,203                              45,300
5900      Other Financing Uses                            -                        -                  -                                                  N/A
                                                                                                                            -                  -                                   -
          Replacement Reserve - DWRF                      -                        -                  -                                                   0%
                                                                                                                      290,000                  -                             290,000
                                                $ 1,457,638           $      666,691        $ 1,367,162                                                  16%
                                                                                                                  $ 1,884,846       $    310,605                      $    1,884,846

90000   Project Expenditures
5200       Operating Supplies                   $                 -   $                 -   $                 -                                          N/A
                                                                                                                  $             -   $            -                    $             -
                                                                                                                                                                                        SEE "BUDGETED CAPITAL
5300       Contractual Services                        417,830               185,779               284,507                                               34%
                                                                                                                      1,340,000          355,180                           1,060,000
                                                                                                                                                                                        IMPROVEMENTS" FOR DETAIL
5700       Capital Outlays                                -                     -           -                                                            N/A
                                                                                                        -                                     -                                    -
                                                $   417,830           $   185,779 $   284,507 $ 1,340,000                                                34%
                                                                                                                                    $   355,180                       $    1,060,000
                                                $ 6,820,484           $ 2,085,863 $ 5,055,158 $ 6,848,243                                                19%
                                                                                                                                    $ 1,270,791                       $    6,568,243

                                                $ 2,301,294           $ 3,128,123           $ 3,585,169
        Available Cash Balance - EOY                                                                              $ 1,612,501       $ 3,246,264                       $    2,608,926
City of Muskegon
Quarterly Budget Reforecast and 2011-12 Proposed Budget
                                                                                                        2011-12           2011-12
                                                                                                                                             2011-12 1Q
                                                                                  Responsibility       Budgeted          Estimated                                 Comments
                                                                                                                                             Reforecast
                                                                                                       Projects        Project Grants


                                                                                2011-12 BUDGETED PROJECTS

     101      General Fund

              Roof Replacement over Police Department                                Al-Shatel     $         39,000                      $          39,000

              Irrigation Well & Pumps @ Lakeside Cemetery                            Al-Shatel               29,000                                 29,000

              VOIP Phone System                                                       Maurer                 90,000                                 90,000       One-Year Payback

              McGraft - Replace Roof/Surface Tennis Courts/Drainage& Ice Melt        Al-Shatel               35,000                                 35,000

              ADA Compliance, various locations                                      Al-Shatel               25,000                                 25,000       Federal Agreement

              Irrigation at City Hall                                                Al-Shatel               15,000                                 15,000        Replace System

              City Hall Tuck Pointing & Sealing                                      Al-Shatel               40,000                  -              40,000

                                                                                                            273,000                  -             273,000

     202      Major Streets

              Laketon, Barclay to Henry                                              Al-Shatel               30,000                                 30,000

              Laketon-Henry Intersection                                             Al-Shatel               20,000                                 20,000

              Laketon Traffic Signals: Hoyt, Getty, Roberts & Wood                   Al-Shatel               50,000                                300,000

              Traffic Signal replacement/Upgrade at Getty & Evanston                 Al-Shatel              138,000                  -               5,000     Design Only this Year

              Laketon, Henry to Park                                                 Al-Shatel              700,000            560,000             765,000       STP Grant Funds

              Ryerson Creek Fish Passage (Muskegon Ave. @ Eastern)                   Al-Shatel               40,000                                 40,000

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

              Port City, Latimer to Laketon                                          Al-Shatel               15,000                                 15,000

              Getty Street, Keating to Laketon (STP)                                 Al-Shatel              575,000            300,000             575,000       STP Grant Funds

              Traffic Signals Warrants Evaluation, various locations                 Al-Shatel               23,000                  -              23,000

              Speed Limits Evaluations                                               Al-Shatel               20,000                                 20,000   In-House engineering Costs
City of Muskegon
Quarterly Budget Reforecast and 2011-12 Proposed Budget
                                                                                                  2011-12           2011-12
                                                                                                                                   2011-12 1Q
                                                                               Responsibility    Budgeted          Estimated                                       Comments
                                                                                                                                   Reforecast
                                                                                                 Projects        Project Grants


                                                                             2011-12 BUDGETED PROJECTS
              Terrace, Apple to Western                                           Al-Shatel           230,000            160,000         240,000       Mill and Resurface - HPP Grant Funds

              M-120 Over North Branch of River                                    Al-Shatel            14,000                             14,000      MDOT Project - 8.75% City Participation

              Getty St., Laketon to Evanston                                      Al-Shatel           960,000            435,000         960,000           TEDF and CDBG Grant Funds

                                                                                                     3,915,000         1,936,000       4,107,000

     203      Local Streets

              Dale, Peck to Clinton                                               Al-Shatel            55,000                  -          55,000                    Reconstruct

                                                                                                       55,000                  -          55,000

     404      Public Improvement Fund

              No Budgeted Projects                                                                           -                 -                -



     408      Arena Maintenance Fund

              No Budgeted Projects                                                                           -                 -                -

                                                                                                             -                 -                -

     482      State Grants Fund

              EPA Grant                                                        Brubaker-Clarke         40,000             40,000          40,000

              Musketawa Trail Connection-phase IB (Keating to Black Creek)        Al-Shatel           275,000            275,000         275,000

                                                                                                      315,000            315,000         315,000

     590      Sewer

              Sewer Rehabilitation Project (various projects)                     Al-Shatel           100,000                  -         100,000          Lining of Manholes/Sewer Lines

              Isabella, Peck to Terrace                                           Al-Shatel            25,000                             25,000

              Getty, Laketon to Evanston                                          Al-Shatel           135,000                  -         135,000           New Sewer Main and Services

              Terrace, Apple to Western                                           Al-Shatel            20,000                  -          20,000    Sewer Repairs Associated With Street Project

              GIS Update and Maintenance                                          Al-Shatel            30,000                             30,000        County Licensing, Map Maintenance

              Mason, Sixth to Fifth                                               Al-Shatel            90,000                  -          90,000            Replace Main and Services

                                                                                                      400,000                  -         400,000
City of Muskegon
Quarterly Budget Reforecast and 2011-12 Proposed Budget
                                                                                                                2011-12           2011-12
                                                                                                                                                2011-12 1Q
                                                                                              Responsibility   Budgeted          Estimated                                      Comments
                                                                                                                                                Reforecast
                                                                                                               Projects        Project Grants


                                                                                       2011-12 BUDGETED PROJECTS
     591         Water

                 Elevated Tank - Marshall & Roberts, Interior Painting                           Al-Shatel          290,000                 -         185,000                  Favorable Bids

                 Water Main Replacement Project, various locations & 2" & 4" Mains replacem      Al-Shatel          100,000                 -         100,000                   Filtration Plant

                 Laketon, Henry to Park                                                          Al-Shatel           25,000                            70,000    Water Repairs Associated With Street Project

                 Getty Street, Keating to Laketon (STP)                                          Al-Shatel          135,000                           135,000          Main and Services Replacement

                 Getty St., Laketon to Evanston                                                  Al-Shatel          225,000                           225,000     Crossing Mains and Services Replacement

                 Isabella, Peck to Terrace                                                       Al-Shatel           40,000                            40,000            Replace Main and Services

                 High Service Switchgear Repairs & Upgrades                                      Al-Shatel          175,000                           175,000                   Filtration Plant

                 Terrace, Apple to Western                                                       Al-Shatel          230,000                            10,000    Water Repairs Associated With Street Project

                 GIS Update and Maintenance                                                      Al-Shatel           30,000                            30,000        County Licensing, Map Maintenance

                 Mason, Sixth to Fifth                                                           Al-Shatel           90,000                 -          90,000            Replace Main and Services

                                                                                                                   1,340,000                -       1,060,000

     642         PSB

                 No Budgeted Projects                                                                                      -                -                -

                                                                                                                           -                -                -

     643         Engineering Services

                 Intergovernmental Engineering Work                                              Al-Shatel           20,000                 -          20,000

                                                                                                                     20,000                 -          20,000

     661         Equipment Fund

 5720/Quantity   Non-Vehicular Equipment:

       1         Diagnostic Equipment                                                            Al-Shatel           25,000                 -          25,000

       1         Snow Blower / Mower                                                             Al-Shatel          103,000                 -         103,000

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

                                                                                                                    153,000                 -         153,000
City of Muskegon
Quarterly Budget Reforecast and 2011-12 Proposed Budget
                                                                                  2011-12           2011-12
                                                                                                                       2011-12 1Q
                                                            Responsibility       Budgeted          Estimated                                Comments
                                                                                                                       Reforecast
                                                                                 Projects        Project Grants


                                                          2011-12 BUDGETED PROJECTS
     5746     Communications Equipment:

      1       Video system                                     Al-Shatel                8,000                  -               8,000

      5       Cruiser radios                                   Al-Shatel                8,000                  -               8,000

      6       In-car radios                                    Al-Shatel                4,000                  -               4,000

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

                                                                                       26,000                  -              26,000

     5730     Vehicles:

      2       Small Pickup                                     Al-Shatel               32,800                  -              32,800

      5       Patrol Cruisers                                  Al-Shatel                     -                 -             110,000

      1       Pickup Truck, 4X4                                Al-Shatel               24,600                  -              24,600

      1       I ton dump 4X4                                   Al-Shatel               31,000                  -              31,000   New - For Plowing Alleys

      1       Plow Truck                                       Al-Shatel              140,000                  -             140,000    Replaces 1992 Vehicle

      1       Vactor                                           Al-Shatel                     -                 -             322,165    Replaces 1992 Vehicle

      1       Sewer Jet                                        Al-Shatel              200,000                  -             200,000   Replaces 1999 Equipment

                                                                                      428,400                  -             860,565

                Total Equipment Fund                                                  607,400                  -           1,039,565



                                                                             $       6,925,400   $     2,251,000   $       7,489,565
Date: October 25, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Consideration of 2012 COLA for Retirees


SUMMARY OF REQUEST:                        It is time to consider whether an annual cost of living
adjustment (COLA) should be awarded to city retirees. Under the City’s COLA program, permanent
cost of living increases are made to pensioners retired five years or more. COLA payments are capped
at 75% of the CPI and are payable only when investment performance exceeds estimates and the
COLA is deemed affordable. The last COLA increase was in 2009, when a 0.50% COLA was granted.

The actuary has computed the cost of a 1% COLA adjustment as follows:

                        Group                                                       Cost

                        Eligible General Retirees                                 $21,456

                        Eligible P&F Retirees                                     $53,280

The City’s retirement system remains financially sound but continues to feel the impact of the collapse
of the financial markets in late 2008. The most recent annual actuarial valuation contains this important
warning:

“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 (three-tenths, for 2008, 2009, and 2010) of the 2008 investment market
losses were recognized in this 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, 2010 the actuarial value of assets is 116% of market value (down from 125% in 2009). 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, 2010 valuation results were based on market value on that date instead of 10-year smoothed funding
value: i) the funded percent of your entire municipality would be 86% (instead of 100%); and ii) your total employer contribution
requirement for the fiscal year starting July 1, 2012 would be $3,629,328 (instead of $1,012,440). If the investment markets do not
fully make-up for the 2008 losses, employer contribution requirements may rise. ”

Given the above and the numerous other financial challenges facing the City, staff does not believe it is
prudent to commit to an additional long-term cost at this time. Therefore, it is recommended no retiree
COLA be awarded for the year beginning January 1, 2012.

FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Commission action affirming staff’s recommendation that
no retiree COLA increase be granted for 2012.




                                                                  1
October 3, 2011

Ms. Anne Wagner
Chief Executive Officer
Municipal Employees Retirement
System of Michigan
1134 Municipal Way
Lansing, Michigan 48917

Subject: Supplemental Valuation for Muskegon, City of (6116), Division(s) 10, 20

Dear Anne:

Attached are the results of a supplemental valuation prepared for Muskegon, City of 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

                                               Flexible E (one time 1.0% increase for certain retirees)
         General (10)

                                               Flexible E (one time 1.0% increase for certain retirees)
         PLC/Fire Ret (20)

This report values a one-time 1.0% increase in retirement benefits, effective January 1, 2012, for members in these
divisions who have been retired at least five years. The list of affected retirees has been provided by the City. The cost of
a one-time increase of less than 1.0% for these members can be determined by prorating the results shown, for example
the cost of a 0.5% one-time increase in retirement benefits is one-half the results of the 1.0% increase shown in the
“Difference” column.

This report may be provided to other interested parties only in its entirety and only with the 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 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,



Shana M. Neeson
Senior Analyst



W. James Koss, ASA
Actuary

rpc_id : 44393
                   MERS Supplemental Valuations - Important Comments

          1.    As amended, effective March 10, 2011, 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 80% 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 80% 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
                        80% 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 80% requirement (subsection (3)).
                d)      The 80% 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, 2010 demographic
                and financial information unless noted elsewhere in the report.
          5.    The valuation date is December 31, 2010.
          6.    The valuation methods and Retirement Board-approved assumptions are consistent with
                those used in the December 31, 2010 Annual Actuarial Valuation, unless noted
                elsewhere in the report.
          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.

rpc_id: 44393                                                                                     -1-
                                    Gabriel Roeder Smith & Company
                   MERS Supplemental Valuations - Important Comments

          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 directed that the amortization period for positive unfunded liabilities is
                decreased annually by 2 years until the period reaches 5 years (Amended Amortization
                Policy for Closed Divisions Within Open Municipalities).
          10.   The results in this report were based on information provided to the actuary by the
                municipality and MERS. 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 (800) 767-6377 or MERS’ actuary before relying on the results in this report.




rpc_id: 44393                                                                                        -2-
                                     Gabriel Roeder Smith & Company
                                        Muskegon, City of (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 two years, 2009 and 2010, have been more stable and MERS’
portfolio recovered with investment returns of over 17% and 14%, respectively. While economic worries
continue to haunt investors world-wide, equity markets have rebounded, particularly in the United States.
MERS maintains the 8% annual return assumption on investments in the belief that over the long term this is
achievable.

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 (three-tenths, for
2008, 2009, and 2010) of the 2008 investment market losses were recognized in your December 31, 2010
actuarial valuation report and in this supplemental actuarial valuation report. This reduces the volatility of
the valuation results, which affects your required employer contribution and your actuarial funded
percentage.

As of December 31, 2010 the actuarial value of assets is 116% of market value (down from 125% in 2009).
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, 2010 valuation results were based on market value on that date instead of 10-year
smoothed funding value: i) the funded percent of your entire municipality would be 86% (instead of 100%);
and ii) your total employer contribution requirement for the fiscal year starting 1, 2012 would be $3,629,328
(instead of $1,012,440). 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 three-tenths of the 2008 market losses are reflected in this supplemental actuarial
valuation report and your December 31, 2010 valuation results. 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 7 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 7 years (as described above). These
increases would be in addition to the contributions for Current Benefits or for Proposed Benefits shown in
this report.




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, 2010 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.
rpc_id: 44393                                                                                                      -3-
                                       Gabriel Roeder Smith & Company
                     Muskegon, City of (6116) - General Ret (Division 10)
          Employer Computed Contributions -- Based on 12/31/2010 Actuarial Valuation
                                                                         Current                   Proposed
                                                                         Benefits                  Benefits                  Difference

  1. Benefits
    a) Benefit Formula                                             Old Plan Benefits         Old Plan Benefits
    b) Normal Retirement Age                                               -                         -
    c) Vesting Provision                                                   -                         -
    d) F50 Ret Condition                                                   -                         -
    e) F55 Ret Condition                                                   -                         -
    f) F(N) Ret Condition                                                  -                         -
    g) Rule of X                                                           -                         -
    h) FAC Period                                                          -                         -
    i) RS50 Percent                                                        -                         -
    j) DROP+                                                               -                         -
    k) D-2                                                                 -                         -
    l) Benefit E                                                   0.5% (1/1/2009)         Flexible E 1.0% (1/1/12) Flexible E 1.0% (1/1/12)
    m) Benefit E-1                                                         -                         -
    n) Benefit E-2                                                         -                         -
    o) Load for Sick Leave in FAC                                          -                         -
    p) Member Contribution Rate                                            -                         -

  2. Member Counts
    a) Active                                                                         0                         0                          0
    b) Retired                                                                      132                       132                          0
    c) Vested Former Members                                                         14                        14                          0
    d) Total                                                                        146                       146                          0
                                                                                     $0                        $0                         $0
  3. Annual Payroll
                                                                         $12,252,589                $12,252,589                           $0
  4. Actuarial Value of Assets

  5. Actuarial Accrued Liability
    a) Active                                                                     $0                         $0                         $0
    b) Retired                                                            11,719,870                 11,806,016                     86,146
    c) Vested Former Members                                                 994,393                    994,393                          0
    d) Pending Refunds                                                        32,563                     32,563                          0
    e) Total                                                             $12,746,826                $12,832,972                    $86,146
                                                                            $494,237                   $580,383                    $86,146
  6. Unfunded Accrued Liability (UAL) (5e - 4)
                                                                                  96.1%                     95.5%                        (0.6%)
  7. Division Percent Funded (4 / 5e)

  8. Cost as an Annual Dollar Amount
    a) Employer Normal Cost                                                        $0                        $0                            $0
    b) Amort. of UAL (over 5 years)                                            94,272                   115,728                        21,456
    c) Total Long Term Employer Contribution (8a + 8b)                         94,272                   115,728                        21,456
    d) Overfunding Credit                                                           0                         0
    e) Total Regular Employer Contribution $ (8c + 8d)                        $94,272                  $115,728                    $21,456
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.




rpc_id: 44393                                                                                                                    -4-
                                            Gabriel Roeder Smith & Company
                           Muskegon, City of (6116) - General Ret (Division 10)
                                    Impact of Adopting the Benefits
        Results reported on the previous page show how the December 31, 2010 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.

                   Measurements from the Annual Valuation Report
                   1. Actuarial Accrued Liability
                      a) Current Benefits                                              $12,746,826
                      b) Proposed Benefits                                              12,832,972
                      c) Difference                                                        $86,146
                   2. Division Percent Funded
                      a) Current Benefits                                                   96.1%
                      b) Proposed Benefits                                                  95.5%
                      c) Difference                                                         (0.6%)
                   3. Long Term Employer Contribution
                      a) Current Benefits                                                  $94,272
                      b) Proposed Benefits                                                 115,728
                      c) Difference                                                        $21,456
        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.




rpc_id: 44393                                                                                                             -5-
                                         Gabriel Roeder Smith & Company
                    Muskegon, City of (6116) - PLC/Fire Ret (Division 20)
          Employer Computed Contributions -- Based on 12/31/2010 Actuarial Valuation
                                                                         Current                   Proposed
                                                                         Benefits                  Benefits                  Difference

  1. Benefits
    a) Benefit Formula                                             Old Plan Benefits         Old Plan Benefits
    b) Normal Retirement Age                                               -                         -
    c) Vesting Provision                                                   -                         -
    d) F50 Ret Condition                                                   -                         -
    e) F55 Ret Condition                                                   -                         -
    f) F(N) Ret Condition                                                  -                         -
    g) Rule of X                                                           -                         -
    h) FAC Period                                                          -                         -
    i) RS50 Percent                                                        -                         -
    j) DROP+                                                               -                         -
    k) D-2                                                                 -                         -
    l) Benefit E                                                   0.5% (1/1/2009)         Flexible E 1.0% (1/1/12) Flexible E 1.0% (1/1/12)
    m) Benefit E-1                                                         -                         -
    n) Benefit E-2                                                         -                         -
    o) Load for Sick Leave in FAC                                          -                         -
    p) Member Contribution Rate                                            -                         -

  2. Member Counts
    a) Active                                                                         0                         0                          0
    b) Retired                                                                      136                       136                          0
    c) Vested Former Members                                                          4                         4                          0
    d) Total                                                                        140                       140                          0
                                                                                     $0                        $0                         $0
  3. Annual Payroll
                                                                         $22,494,971                $22,494,971                           $0
  4. Actuarial Value of Assets

  5. Actuarial Accrued Liability
    a) Active                                                                     $0                         $0                         $0
    b) Retired                                                            24,724,944                 24,938,918                    213,974
    c) Vested Former Members                                                 268,846                    268,846                          0
    d) Pending Refunds                                                             0                          0                          0
    e) Total                                                             $24,993,790                $25,207,764                   $213,974
                                                                           $2,498,819                $2,712,793                   $213,974
  6. Unfunded Accrued Liability (UAL) (5e - 4)
                                                                                  90.0%                     89.2%                        (0.8%)
  7. Division Percent Funded (4 / 5e)

  8. Cost as an Annual Dollar Amount
    a) Employer Normal Cost                                                       $0                         $0                            $0
    b) Amort. of UAL (over 5 years)                                          536,676                    589,956                        53,280
    c) Total Long Term Employer Contribution (8a + 8b)                       536,676                    589,956                        53,280
    d) Overfunding Credit                                                          0                          0
    e) Total Regular Employer Contribution $ (8c + 8d)                      $536,676                   $589,956                    $53,280
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.




rpc_id: 44393                                                                                                                    -6-
                                            Gabriel Roeder Smith & Company
                          Muskegon, City of (6116) - PLC/Fire Ret (Division 20)
                                    Impact of Adopting the Benefits
        Results reported on the previous page show how the December 31, 2010 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.

                   Measurements from the Annual Valuation Report
                   1. Actuarial Accrued Liability
                      a) Current Benefits                                              $24,993,790
                      b) Proposed Benefits                                              25,207,764
                      c) Difference                                                       $213,974
                   2. Division Percent Funded
                      a) Current Benefits                                                   90.0%
                      b) Proposed Benefits                                                  89.2%
                      c) Difference                                                         (0.8%)
                   3. Long Term Employer Contribution
                      a) Current Benefits                                                 $536,676
                      b) Proposed Benefits                                                 589,956
                      c) Difference                                                        $53,280
        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.




rpc_id: 44393                                                                                                             -7-
                                         Gabriel Roeder Smith & Company

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