Financial Report for New Fiscal Year Available

In November 2009, voters approved charter amendments allowing the City Commission to change the City’s fiscal year. The original City Charter (approved in 1919) specified that the City’s fiscal year as January 1 – December 31.

Click image to see 6/30/10 Comprehensive Annual Financial Report

In May 2010, the City Commission voted to change to a July 1 – June 30 fiscal year. This change was made effective June 30, 2010. A six-month “stub” year (from January 1, 2010 through June 30, 2010) was necessary to make the changeover.

Audited financial statements for this six-month period have been completed and are now available for public inspection.

Some highlights from the report:

• The assets of the City of Muskegon exceeded its liabilities by $134,105,204 as of June 30, 2010. Of the total net assets, $21,458,627 (16.0%) was unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors.
• The City’s total combined net assets increased $4,630,892 (3.6%) during the six-month period ended June 30, 2010. This increase is primarily results from the fiscal year change noted above.
• The City’s governmental funds reported combined ending fund balance of
  $12,111,798, an increase of $4,229,275 (53.6%) from the prior year.
• The City’s General Fund reported a total fund balance of $6,038,454, an increase
  of $4,399,792 from the prior year. Again, this increase is due to the fiscal year change coupled with continued tight budget controls. Recognizing the one-time nature of this increase, the City has designated a large portion of the fund balance to pay down outstanding liabilities:

1. $1.0 million is designated as a supplemental contribution to the City’s defined benefit pension program to maintain 100% actuarial funding levels;
2. $620,000 is designated for early retirement of an outstanding economic development loan from the State of Michigan;
3. $334,605 is designated for early retirement of a lease-purchase contract for two City fire trucks; and
4. $100,000 is designated to pay future debt service on outstanding sidewalk assessment bonds.