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      City of Muskegon,      
      Michigan 


  2007 Proposed Budget and 
  Quarterly Budget Reforecast 

      For The Year Beginning January 1, 2007 













  



  



                CITY OF MUSKEGON, MICHIGAN 
 
                     PROPOSED BUDGET 
 
           FOR THE YEAR BEGINNING JANUARY 1, 2007 
   

                                             
                CITY COMMISSION 
 
                STEVE WARMINGTON - MAYOR 
   CLARA 
        SHEPHERD     LAWRENCE 
                                                      SPATARO 
 CHRIS 
        CARTER 
                      STEVE 
                                                 GAWRON 
 SUE 
       WIERENGO 
                      KEVIN 
                                                 DAVIS 
  
                       BRYON MAZADE 
                       CITY MANAGER 



  



    CITY 
                                      OF 
                                             MUSKEGON, 
                                                                    MICHIGAN 
 
                        Budget for the Year Ended December 31, 2007 
 
                                     TABLE OF CONTENTS 
                                                                                                
                                                                                               
 INTRODUCTORY SECTION                                                                         5 
 City Manager's Budget Message                                                               7 
 Summary Charts and Graphs                                                                 17 
         
Division Budget Narratives                                                                 23             
        Public Representation Division                                                     24        
        Administrative Services Division                                                   26 
        Financial Services Division                                                        29        
        Public Safety Division                                                             32 
        Public Works Division                                                              36 
        Leisure Services Division                                                          40        
        Community & Economic Development Division                                          42 
         
 I.  GENERAL FUND BUDGET                                                                  47  
 Budget Summary                                                                            48        
 Detailed Revenue Summary by Revenue Classification                                        49             
 Detailed Expenditure Summary by Function                                                  53        
 Comparison of Revenues and Costs of Selected Functions                                    63 
   
                                                         




                                                     Page 1



                                         CITY OF MUSKEGON, MICHIGAN 
 
                               Budget for the Year Ended December 31, 2007 
 
                                     TABLE OF CONTENTS - CONTINUED 
                                                                                                                                              
                                                                                                                               
II.  NON-GENERAL FUND BUDGETS                                                                                             65  
 Major Streets and State Trunklines Budget                                                                                66              
 Local Streets Budget                                                                                                     67 
           
Arena Improvement Budget                                                                                                  68 
 Budget Stabilization Fund                                                                                                69 
 Farmers Market Improvement Budget                                                                                        70 
 Criminal Forfeitures Budget                                                                                              71 
 Tree Replacement Budget                                                                                                  72 
 Local Development Finance Authority I Budget                                                                             73 
 Local Development Finance Authority II Budget                                                                            74 
 Local Development Finance Authority III Budget                                                                           75 
 Tax Increment Finance Authority Budget                                                                                   76 
 Downtown Development Authority Budget                                                                                    77 
 Sidewalk Improvement Budget                                                                                              78 
 Public Improvement Budget                                                                                                79 
 State Grants Fund Budget                                                                                                 80 
                                                                     
Marina & Launch Ramp Budget                                                                                               81              
           
Equipment Budget                                                                                                          82 
    

                                                                Page 2



                             CITY OF MUSKEGON, MICHIGAN 
 
                        Budget for the Year Ended December 31, 2007 
 
                           TABLE OF CONTENTS ­ CONTINUED 
                                                
 II.  NON-GENERAL FUND BUDGETS (continued)  
 Public Service Building Budget                                            83 
 Engineering Services Budget                                               84 
 General Insurance Fund Budget                                             85 
 Water Fund Budget                                                         86                   
 Sewer Budget                                                              87              
    III. APPENDICES                                                              
 Debt Service Requirements                                               89           
 2006 Budgeted Capital Improvements                                      91 
 2007 Budgeted Capital Improvements                                      97           
 Budgeted Personnel Complement                                          103           
 2007 Budget Resolution                                                 111                
 














                                           Page 3



  
























      Page 4



                       INTRODUCTORY SECTION 
 























                            Page 5



  
























      Page 6



Affirmative Action 
(231)724-6703 
FAX (231)722-1214 
 Assessor 
(231)724-6708 
FAX (231)726-5181 
 Cemetery 
(231)724-6783 
FAX (231)726-5617 
 City Manager                                                                   
(231)724-6724 
FAX (231)722-1214 
                         
Civil Service 
(231)724-6716            
FAX (231)724-4405       August 30, 2006 
 Clerk                   
(231)724-6705            
FAX (231)724-4178 
                        Honorable Mayor and City Commissioners: 
Comm. & Neigh. 
Services                 
(231)724-6717           Enclosed is the proposed 2007 Budget for the City of Muskegon.  Our focus has been an attempt 
FAX (231)726-2501 
                        to maintain service levels, given the current economic conditions and rising personnel and 
Engineering             operational costs. Also, the 2007 spending plan was prepared considering the type and scope of 
(231)724-6707 
FAX (231)727-6904       programs the City Commission identified as priorities during the February strategic planning 
                        process and the budget reforecast throughout 2006. 
Finance 
(231)724-6713             
FAX (231)724-6768 
                        The City's total proposed 2007 spending plan (including all budgeted funds) is $58,072,181 as 
Fire Department         compared to $63,714,084 originally proposed for 2006.   In addition to modestly scaled back 
(231)724-6792 
FAX (231)724-6985       operating budgets, the significant decrease is attributable to the fact that large capital projects 
                        including Shoreline Drive and the water filtration plant improvements were completed in 2006. A 
Income Tax 
(231)724-6770           limited amount of capital outlays for routine water, sewer and street improvements is included in 
FAX (231)724-6768 
                        the 2007 budget. Also, the L.C. Walker Arena operation fund is eliminated since the City's 
Info. Technology        obligation under the new contract is a fixed payment arrangement.  This payment is budgeted for 
(231)724-4126 
FAX (231)722-4301       in the General Fund. 
                         
Inspection Services 
(231)724-6715           It is important to note that the proposed spending plan does not include a property tax increase.  
FAX (231)728-4371       However, the proposed budget retains the current millage rate as established when the 2005 
 Leisure Services       Budget was adopted. 
(231)724-6704 
FAX (231)724-1196        
                        The city's budget is made up of several individual funds that are reviewed below. 
Mayor's Office 
(231)724-6701            
FAX (231)722-1214       General Fund 
 Planning/Zoning         
(231)724-6702           Proposed general fund expenditures are $24,582,786, up 3.30% from the 2006 revised estimate of 
FAX (231)724-6790 
                        $23,796,620.  Revenues for 2007 are estimated at $24,302,264, up (1%) from the 2006 revised 
Police Department 
(231)724-6750           estimate of $24,061,065.   Revenues remain stagnant and are not keeping up with rising costs 
FAX (231)722-5140       largely due to the economy and increased personnel-related costs.   State shared revenues for 2007 
 Public Works           are projected to remain at their current level.   
(231)724-4100             
FAX (231)722-4188 
                        The proposed general fund budget is based upon conservative estimates of revenue and realistic 
Treasurer 
(231)724-6720           projections of expenses and is structured to allow the city to maintain a fund balance equal to 10% 
FAX (231)724-6768       of prior year expenditures, in accordance with City Commission policy. It should be noted that the 
 Water Billing          proposed general fund budget does include a transfer of $150,000 from the Budget Stabilization 
(231)724-6718           Fund in order to meet that fund balance target and maintain city services as much as possible. 
FAX (231)724-6768 
                         
Water Filtration         
(231)724-4106 
FAX (231)755-5290 
                                                                  Page 7



                                                                        
 
     For the last several years, total General Fund revenues have remained essentially flat.  Total budgeted 
     revenues for 2007 are only 2.6% higher than actual revenues received in 2000.  Costs for things the City 
     buys- wages, employee benefits, fuel, utilities, etc. ­ have obviously increased at a much steeper rate. We 
     have "held our own" for several years in anticipation of relief from an economic upturn.  Staff has 
     responded by wringing efficiencies out of operations, wherever possible and cutting back non-essential staff 
     and services.  The 2007 budget is a continuation of these efforts. 
      The following are changes to the general fund budget proposed for 2007 that are worthy of note.  
          Because personnel costs represent such a large portion of the city's General Fund, it is necessary to 
        critically review the personnel complement each year. The following adjustment to the personnel 
        complement is included in the proposed budget:   
                 Elimination of the Revenue Collections Administrator in the Treasurer's Office. The duties of 
                this position are being assumed by the Income Tax Administrator/Deputy Treasurer as a part of 
                the effort to integrate the Treasurers and Income Tax Offices more closely.  
          In accordance with Commission goals, the continuation of the fight against neighborhood blight remains 
        a high priority for 2007. Several departments will continue to work collectively to eliminate blighting 
        influences. We will continue enforcement on illegal dumping with surveillance of sites frequently used 
        for dumping.  We have been able to cite violators in 2006 using new surveillance equipment. The City's 
        successful anti-graffiti efforts will also be continued. 
 
          Environmental Services will implement the new leaf ordinance.  At this time we are uncertain as to what 
        the staff effort and contractor cost will be for this service.  This budget also anticipates an increase in 
        contractor costs for mowing and lot clean-ups and the assumption of city-owned lot clean-ups which are 
        no longer allowed to be funded through CDBG. 
 
          The Fire Department will re-locate the central fire station operation in the middle of the year to the 
        newly constructed station at Terrace and Western. We will continue to consider the most efficient ways 
        to utilize department resources. Consideration should also be given to exploring the use of part-
        time/part-paid firefighters to address department personnel needs. 
 
          The Police Department will continue the use the successful Neighborhood Response Team program to 
        address crime in the City's central neighborhoods. It will also push to better control court overtime 
        costs. This will require cooperation of the County Prosecutor's Office and the court system.  The 
        department will also pursue cooperative efforts with other law enforcement agencies. 
 
          The Inspections Department is planning to implement a significant change in how the rental housing 
        program is administered.  The timing of the inspection would stay the same, but we would go to a 
        regular annual fee instead of only charging every four years when inspections are done. This program 
        will be designed with the goals of cutting down on administrative costs and rewarding compliant 
        landlords. Under the current fee structure, revenues are not covering program costs. 

                                                         Page 8



                                                                         

          Recreation is intending to discontinue the adult softball program since participation has declined 
          significantly over the past several years to a point where it is no longer self-sufficient.  Another 
          organization is ready to operate the softball leagues in conjunction with their leagues. This move will 
          also entail discontinuing our contract with Muskegon Township for the use of Softball World. Also, 
          playground programs for Reese and Sheldon Park will be combined at Sheldon Park to make way for the 
          addition of a much needed program at Joe Clifford Park. 
 
          The Parks Department budget saw a significant increase in water costs in 2006 due to the recent water 
          rate increase and those costs are expected to continue in 2007. Parks also expects to dedicate more 
          staffing to maintenance of the new section of Shoreline Drive and the added sections of the Lakeshore 
          Trail. 
 
          Cemeteries costs are also up due to the recent water rate increase and newly installed water meters. 
 
          As noted, the L.C. Walker Arena Fund is eliminated and a new budget has been set up in the General 
          Fund for costs associated with the new arena contract. 
 
          The Julia Hackley Internship program is not included in this budget because the Community Foundation 
          has indicated they will no longer fund it. This is unfortunate because four departments each summer 
          were able to supplement their personnel complement and get important projects completed.  Perhaps 
          more important is the experience the city was able to provide the college students. 
 
          The parking budget is reduced because it is anticipated that the parking ramp will be sold and the costs 
          associated with it will no longer be incurred. 
 
          The General Fund will be required to transfer $100,000 for Smartzone debt service because that 
          development is not yet generating enough tax increments to pay all of the debt service for the MAREC 
          building. A $75,000 contribution from the Community Foundation for Muskegon County is also 
          budgeted for this purpose. 
 
          The General Fund will need to transfer $40,000 for 2006 and 2007 to the Marina Fund for debt service 
          because the marina does not generate enough revenue to pay operating expenses and debt service. 
 
          Some user fees will be increased and new fees will be recommended in December when the city's 
          master fee resolution is adopted.   
 
          For the first time in recent history, no major general fund capital expenditures are included in the budget 
          for 2007. Unfortunately, important capital improvements are being deferred to later years.    
 
          The General Fund transfer to the Local Street Fund is budgeted at $480,000.   
 
      

                                                             Page 9



                                                                         
 
      There are significant items not included in the proposed 2006 budget that will be studied in the coming 
      months to determine if they should be pursued. These include: 
 
           Consideration needs to be given to the use of the remaining grants funds ($325,000) that are available 
         for marina improvements.  Critical review of the state restrictions on the operation of the marina needs 
         to occur to determine whether the city should continue in this business or explore ways to get out of the 
         marina business. 
           Staff will be working on the redevelopment of the Terrace Street Lots for a new fire station, potential 
         relocation of the Farmer's Market and additional commercial development.  We will also continue 
         attempts to sell other properties, including the Seaway Industrial Park properties and possibly the 
         Meurer Court Lots. 
  
      Other Budgeted Funds 
      In addition to the general fund, the city's budget is made up of various other funds, which, as a group, 
      account for nearly two-thirds of the city's total 2007 budget.  A summary of budget highlights for these 
      funds follows: 
 
           Major and Local Street Funds  ­ These budgets contemplate continuation of current service levels.  
         The 2007 budget provides for $2.090 million of major street capital improvements. Local street capital 
         improvements are budgeted at $1.425 million, most of which ($1.35 million) is for the former Muskegon 
         Mall project. As noted, the General Fund transfer to the local street fund is $480,000. An additional 
         $140,000 of METRO Act funds is allocated to the local street fund. Only one non-grant funded local 
         street (Knollwood Court, which was petitioned) can be done in 2007 due to lack of funding. We also 
         received petitions for Vincent Drive (largely due to storm sewer problems) and Harbour Towne Circle, 
         but funds are not available for these projects. 
           Sidewalk Improvement Fund ­  The ten-year sidewalk replacement program was completed in 2005.  
         This fund is now used solely to collect assessments and pay debt service on bonds issued to finance the 
         completed sidewalk work. 
 
           Public Improvement Fund ­  Funds are allocated for repayment of the Urban Land Assembly (ULA) 
         loan debt service payment and the fire truck installment purchase payments on the trucks delivered in 
         2006. Also scheduled is completion of the new Central Fire Station, funded through bonds to be issued 
         in 2006. 
 
           State Grants Fund ­  We will continue the site assessment program using the Clean Michigan Initiative 
         (CMI) grant previously received from the State of Michigan. We anticipate receiving a Coastal Zone 
         Management (CZM) grant for the update of the waterfront master plan and a grant for the Musketawa 
         Trail connection from Laketon to the downtown.  
 

                                                             Page 10



                                                                            

          Marina & Launch Ramp Fund ­  No significant changes in funding or operations are budgeted.  State 
            grant funds ($325,000) are available to make additional improvements to the marina, but they need to be 
            matched with a like amount of local funds.  Staff intends to continue to consider ways to make the 
            marina self-sustaining. Efforts to increase enforcement of launch ramp permits will also continue. 
 
          Equipment Fund ­  No significant operational changes are planned. Staff will investigate possible uses 
            of Alternative Fuel Vehicles in the City fleet. Providing maintenance services to other municipalities 
            will also be considered. Scheduled vehicle and equipment purchases totaling $671,900 are planned for 
            2007. 
 
          Public Service Building ­  No significant operational changes or physical improvements are planned.  
 
          Water Fund ­  No water rate increase is planned.  Major improvements to the filtration plant were 
            completed in 2006. Most of the capital improvements for 2007 are tied to street projects.  However, in 
            addition to street projects, the Larch and Hudson Streets water mains are failing and need to be replaced 
            and are included in this budget.  The water fund total for capital improvements is proposed at $1.040 
            million. 
 
          Sewer Fund -  No significant changes are planned for sewer fund operations and no sewer rate increase 
            is planned. We have not yet seen the full impact of the sewer rate increase that was implemented in 2006 
            to determine its adequacy.  Capital improvements, many of which are tied to street projects, will total 
            $801,000. Muskegon Township is changing its method of charging sewer customers which will impact 
            our payment to them for the state prison facility.  We will explore the cost-benefit of alternatives, 
            including building our own lift station. 
 
          Arena Improvement Fund ­  As required under the contract, a new fund is created to provide funding 
            for improvements to the facility. The funds will come from a ticket surcharge as provided by the new 
            management contract. Window replacement is a potential project for 2007 at $20,000. 
 
          Farmers Market Improvement Fund                ­ The Land Reutilization Fund, which sat unused for several 
            years, is proposed to be reallocated for "Farmers Market Improvements", in accordance with the City 
            Commission goal to improve the facility. This is a newly created fund for improvements and/or 
            relocation for the farmers market.  $10,000 is budgeted in 2007 for improvements to the current facility.
                          
                
     Future Outlook 
     The proposed 2007 budget provides a sound-financing plan for the city.  However, as noted, it is largely a 
     status quo budget and does not address many of the City's needs.  It should also be noted that there are 
     several unknown factors that could affect this spending plan. 
        

                                                            Page 11



                                                                       

             Healthcare and Other Benefit Costs  ­ Increased healthcare costs continue to be a major problem 
            for the City.  Based on discussions with Priority Health, the 2007 budget incorporates a moderate 
            increase for active employee healthcare costs for the coming year. Increasing healthcare costs for the 
            more than 300 retired city employees and their beneficiaries' compounds the problem.  Pension costs 
            also continue to increase. Fundamental restructuring of those benefit programs remains a priority for 
            the city in employee contract negotiations. Restructuring of the pension program by moving new 
            employees to defined contribution plans and moving the existing defined benefit plans to MERS 
            (with the exception of Fire and 517M) will help for some  immediate and future relief. 
             State Shared Revenue  ­ In recent years the City's annual share of these revenues has decreased by 
            over $1 million.  Because the State's budget situation remains tenuous, further cuts in Revenue 
            Sharing are a very real possibility. 
 
             Continued Operating Deficits  ­ The 2006 budget is balanced using funds ($280,522) from the 
            general fund balance. It is extremely important to realize, however, that these funds will not be 
            available in future years and that more severe cutbacks will be needed to bring the budget into 
            balance if recurring revenues do not rebound soon. Also, as mentioned earlier, $150,000 is needed 
            from the Budget Stabilization Fund to fund the proposed spending plan. 
 
             Stagnant Property Tax Revenues  - The City's property tax base has not grown appreciably in 
            recent years.  Compounding the problem for future City budgets is the fact that most of the City's 
            economic development initiatives are in areas where any property tax growth has been already 
            allocated to spur the development (e.g. tax increment districts, Renaissance Zones, etc.).  
 
             City Income Tax  ­ The city income tax has been surprisingly stable in recent years, despite 
            generally poor local economic news.  Realistically, however, the cumulative impact of plant 
            downsizings at Beakert, Dana, and Sappi must be considered as a potentially serious budget 
            problem.  We have budgeted revenues conservatively and will continue to closely monitor 
            collections.  
 
             Employee Contracts  ­ Contracts with the police patrol and police command unions expire at the 
            end of 2006. Bargaining with both units will begin this fall. The outcome of these negotiations will 
            have a significant impact on the city's budgetary situation in 2007 and beyond. 
 
             CDBG and Other Federal Grants  ­ These grants continue to decline.  CDBG, in particular, helps 
            to fund general fund services such as recreation, affirmative action and building demolition. HUD 
            has informed us that we can no longer use CDBG funds for lot clean-ups so $25,000 additional costs 
            must be absorbed by the general fund.  The magnitude of the decline in federal grants is 
            demonstrated by the following: in 2000 the General Fund received $522,111 in federal funds; for 
            2007 we are estimating only $88,325. 
 
     We will monitor these issues closely in the coming months and keep you informed.  Also, we will continue 
     the quarterly reforecast of the budget in order to make adjustments as changing conditions and/or 

                                                       Page 12



                                                                         
     Commission policies dictate.  The 2006 third quarter reforecast and update is incorporated into this budget 
     document. 
      Budget Process and Detail 
      The proposed 2007 City Budget is again prepared and presented in a manner intended to focus attention on 
     overall resource allocation priorities and policies rather than line item expenditure detail. Staff believes that 
     the "top-down" resource allocation budget process that has now been used for nine consecutive budget 
     cycles is a more efficient and effective method of making resource allocation decisions than building 
     budgets "up" from detailed line-item expenditure estimates.  Also, central to the City's budget process is the 
     belief that responsibility and accountability for budgeted funds should rest largely with department heads 
     and that these managers should be permitted considerable flexibility in managing their operations within the 
     overall limits of their budgets. 
      As presented herein, proposed departmental expenditures are shown at the expenditure category level of 
     detail (e.g. 5100 "Salaries and Benefits", 5200 "Contractual Services").  To further explain by example, 
     "Contractual Services" (5300 level accounts) are budgeted in total rather than listing detail for each of the 
     50 individual line-item accounts that make up this category.  Following are descriptions intended to help the 
     reader understand the makeup of the expense categories as presented in the budget.   
      Salaries and Benefits (5100 level accounts) ­ This category comprises 23 separate line-item accounts for all 
     wage and benefit costs paid to city employees.  Examples include accounts for regular full-time salaries, 
     temporary salaries, FICA, retirement, health insurance, etc. 
      Operating Supplies (5200 level accounts) - This category comprises 34 separate line-item accounts for 
     supplies purchased by city departments.  Examples include accounts for office supplies, computer supplies, 
     irrigation supplies, road maintenance supplies, etc. 
      Contractual Services (5300 level accounts) - This category comprises 50 separate line-item accounts for 
     various services purchased from outside service providers.  Examples include audit fees, electricity, gas, and 
     other utilities, printing, vehicle rental, insurance, etc. 
      Other Expenses (5400 level accounts) - This category comprises 6 line-item accounts, the primary one being 
     expenditures for conferences, training and travel.   
      Capital Outlays (5700 level accounts) - This category comprises 17 separate accounts for capital equipment 
     purchased by city departments.  Examples include land purchases, vehicles, and office furniture and 
     equipment. 
      Other Financing Uses (5900 level accounts) - This category comprises 19 separate line-item accounts for 
     uses not technically categorized as "expenditures".  Examples include principal and interest payments on 
     debt, operating transfers between funds, and depreciation. 
 

                                                           Page 13



                                                                 
 The above is intended to provide you with highlights of the proposed 2007 Budget and prepare you for a 
detailed review of the same.  This review is scheduled for the September work session on September 11, 
2006.  A public hearing on the budget is scheduled for the regular City Commission meeting to be held on 
September 12, 2006.  The budget could be adopted at that meeting or at a special meeting.   Regardless, the 
City Charter requires that the budget be adopted no later than September 25, 2006. 
 Finally, I would like to thank Tim Paul, Finance Director, Beth Lewis, Assistant Finance Director, and the 
other members of the Finance Department for their efforts in preparing the financial information and the 
proposed document.  
  Respectfully,  
  /s/  Bryon L. Mazade 
City Manager 
               

                                                 Page 14



                                            Citizens of Muskegon
           The 7-member 
           Commission                                               The Citizens of                       The 7-member 
           appoints various                                         Muskegon elect                        Commission 
           Boards and                                               this Commission                       appoints the City 
           Commissions                                                                                    Attorney


Various Boards &                               7-Member City                                   City Attorney
 Commissions                                    Commission

                                                                    The 7-member 
                                                                    Commission 
                                                                    appoints the City 
                                                                    Manager

                                               City Manager







                Administrative Services                                Financial Services 
                        Division                                             Division





                 Public Safety Division                                 Leisure Services 
                                                                             Division






                Community & Economic 
                Development Division                                  Public Works Division









                                                    Page 15



 












































     Page 16



                    SUMMARY CHARTS AND GRAPHS                          Page 17



    City of Muskegon
    2007 Proposed Budget
    Summary of Budgeted Funds

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


1 General                                                      $              2,784,051
                                                                                                         $     24,302,264
                                                                                                                                                 $        24,582,786
                                                                                                                                                                                  $              2,503,529
                                                                                                                                                                                                                            $                (280,522)
                                                                                                                                                                                                                                                


2 Major Streets                                                                   251,697
                                                                                                                  5,027,969
                                                                                                                                                             5,000,591
                                                                                                                                                                                                     279,075
                                                                                                                                                                                                                                                 27,378
                                                                                                                                                                                                                                                               


3 Local Streets                                                                     44,420
                                                                                                                  2,794,797
                                                                                                                                                             2,766,437
                                                                                                                                                                                                       72,780
                                                                                                                                                                                                                                                 28,360
                                                                                                                                                                                                                                                               


4 Criminal Forfeitures Fund                                                       137,744
                                                                                                                       12,000
                                                                                                                                                                  63,000
                                                                                                                                                                                                       86,744
                                                                                                                                                                                                                                               (51,000)
                                                                                                                                                                                                                                                     


5 Budget Stabilization Fund                                                    1,350,000
                                                                                                                                 -                 150,000
                                                                                                                                                                                                  1,200,000
                                                                                                                                                                                                                                              (150,000)
                                                                                                                                                                                                                                                


6 Farmers Market Improvement Fund                                                   24,833
                                                                                                                         1,000
                                                                                                                                                                  10,000
                                                                                                                                                                                                       15,833
                                                                                                                                                                                                                                                 (9,000)
                                                                                                                                                                                                                                                                    


7 Tree Replacement Fund                                                             13,761
                                                                                                                         3,200
                                                                                                                                                                    3,200
                                                                                                                                                                                                       13,761
                                                                                                                                                                                                                                                          - 


8 Tax Increment Finance Authority Debt Fund                                           2,399
                                                                                                                       57,800
                                                                                                                                                                  60,000
                                                                                                                                                                                                            199
                                                                                                                                                                                                                                                 (2,200)
                                                                                                                                                                                                                                                                    


9 Downtown Development Authority Debt Fund                                        166,757
                                                                                                                     483,200
                                                                                                                                                                585,183
                                                                                                                                                                                                       64,774
                                                                                                                                                                                                                                              (101,983)
                                                                                                                                                                                                                                                


10 Local Development Finance Authority I Fund                                            322
                                                                                                                              10
                                                                                                                                                                            -                            332
                                                                                                                                                                                                                                                        10
                                                                                                                                                                                                                                                                              


11 Local Development Finance Authority II Fund                                      22,971
                                                                                                                            600
                                                                                                                                                                            -                       23,571
                                                                                                                                                                                                                                                      600
                                                                                                                                                                                                                                                                         


12 Local Development Finance Authority III Fund (Smartzone)                       102,458
                                                                                                                     204,900
                                                                                                                                                                285,847
                                                                                                                                                                                                       21,511
                                                                                                                                                                                                                                               (80,947)
                                                                                                                                                                                                                                                          


13 Arena Improvement                                                                75,500
                                                                                                                       37,000
                                                                                                                                                                  20,000
                                                                                                                                                                                                       92,500
                                                                                                                                                                                                                                                 17,000
                                                                                                                                                                                                                                                               


14 Sidewalk Improvement                                                           845,938
                                                                                                                     360,000
                                                                                                                                                                395,828
                                                                                                                                                                                                     810,110
                                                                                                                                                                                                                                               (35,828)
                                                                                                                                                                                                                                                          


15 Public Improvement                                                          3,237,715
                                                                                                                     457,348
                                                                                                                                                             2,297,223
                                                                                                                                                                                                  1,397,840
                                                                                                                                                                                                                                           (1,839,875)
                                                                                                                                                                                                                                           


16 State Grants                                                                          102
                                                                                                                  1,505,000
                                                                                                                                                             1,505,000
                                                                                                                                                                                                            102
                                                                                                                                                                                                                                                          - 


17 Marina & Launch Ramp                                                           345,886
                                                                                                                     657,500
                                                                                                                                                             1,055,326
                                                                                                                                                                                                     (51,940)
                                                                                                                                                                                                                                              (397,826)
                                                                                                                                                                                                                                                


18 Public Service Building                                                        221,088
                                                                                                                     582,270
                                                                                                                                                                565,516
                                                                                                                                                                                                     237,842
                                                                                                                                                                                                                                                 16,754
                                                                                                                                                                                                                                                               


19 Engineering Services                                                           127,676
                                                                                                                     666,500
                                                                                                                                                                672,297
                                                                                                                                                                                                     121,879
                                                                                                                                                                                                                                                 (5,797)
                                                                                                                                                                                                                                                                    


20 Equipment                                                                   1,570,259
                                                                                                                  2,420,000
                                                                                                                                                             2,436,615
                                                                                                                                                                                                  1,553,644
                                                                                                                                                                                                                                               (16,615)
                                                                                                                                                                                                                                                          


21 General Insurance                                                              883,556
                                                                                                                  4,197,956
                                                                                                                                                             4,099,023
                                                                                                                                                                                                     982,489
                                                                                                                                                                                                                                                 98,933
                                                                                                                                                                                                                                                               


22 Sewer                                                                       1,195,734
                                                                                                                  5,055,400
                                                                                                                                                             5,347,483
                                                                                                                                                                                                     903,651
                                                                                                                                                                                                                                              (292,083)
                                                                                                                                                                                                                                                


23 Water                                                                       3,862,712
                                                                                                                  6,463,894
                                                                                                                                                             6,170,826
                                                                                                                                                                                                  4,155,780
                                                                                                                                                                                                                                               293,068
                                                                                                                                                                                                                                                     





      Total All Budgeted Funds                                 $            17,267,579
                                                                                                         $     55,290,607
                                                                                                                                                 $        58,072,181
                                                                                                                                                                                  $            14,486,005
                                                                                                                                                                                                                            $             (2,781,574)
                                                                                                                                                                                                                                           




                                                                                     Page 18



                                                                                                                                                                                                                                   LDFA III (Smartzone) 0.5%        CRIMINAL FORFEITURES 0.1%    FARMERS MARKET IMPR 0.0%    TREE REPLACEMENT 0.0%    BUDGET STABILIZATION 0.3%    TIFA 0.1%                PUBLIC SERVICE BUILDING 1.0%    SIDEWALK 0.7%    ARENA IMPROVEMENT 0.0%
                                                                                                         ENGINEERING SERVICES 1.2%                                                     DDA 1.0%



















                                                                                                                                                                                                      MARINA & LAUNCH RAMP 1.8%                       Other 4.8%
                                                                                                                                                                           PUBLIC IMPROVEMENT 4.0%

                                                                                                                                      LOCAL STREETS 4.8%

                                                                                                      EQUIPMENT 4.2%

CITY OF MUSKEGON 
                                                                                INSURANCE 7.1%



                                                                                                                                                                                                                                                                                                                                                                                                GENERAL FUND 42.3%


                                                                             STATE GRANTS 2.6%


                                                                                        SEWER 9.2%



                     TOTAL 2007 BUDGETED FUND EXPENDITURES - $58,072,181                                                                                    WATER 10.6%                                                                 MAJOR STREETS 8.6%









                                                                                                                                                                                                             Page 19



      2007 GENERAL FUND REVENUES
                              $24,302,264

           All Othe r
          Sources
               20%




   State Share d
    Revenue                                             Taxes
      19%                                                61%







      2007 GENERAL FUND EXPENSES
                            $24,582,786

                                         Off-Budge t
                                            Items
  Business                                   7%
 Value Adde d
 Activities
    18%





                                                          Customer
                                                         Value Adde d
                                                         Activities
                                                            75%



      2007 GENERAL FUND EXPENSES
                              $24,582,786
                                Supplies
                Other Uses        2%         Other
                                        Expenses
                      4%                     0%

 Contractual
 Services
   30%



                                                          & Salaries
                                                          Benefits
           Capital                                          63%
               1%






                                  Page 20



                    GENERAL FUND REVENUES AND 
                    EXPENDITURES - LAST 10 YEARS

2007


2005


2003


2001


1999


1997

        $-           $5,000,000      $10,000,000     $15,000,000       $20,000,000       $25,000,000      $30,000,000

                                    REVENUES                  EXPENDITURES


              ACTUAL FUND BALANCE VS TARGET - 
                                        LAST 10 YEARS

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

 $500,000

              $-
                    1997    1998     1999    2000     2001     2002      2003         2004    2005      2006    2007

                    FUND BALANCE                          TARGET FUND BALANCE



                                                         Page 21



  
























      Page 22



                      BUDGET NARRATIVES BY DIVISION 
                
                                   
 











                              Page 23



 
CITY OF MUSKEGON, MICHIGAN 
 

                              PUBLIC REPRESENTATION DIVISON 

DIVISION SUMMARY                                                         like Youth in Government and Bring Your 
                                                                         Child to Work Day. 
PUBLIC REPRESENTATION                                                
                                                                         Promote Economic Stability, Diverse 
Division Description                                                     Economic Growth and Redevelopment. 
The Public Representation Division is                                    The City Manager's Office works with 
responsible for developing, adopting, and                                existing and prospective businesses to 
implementing policy decisions for the City.  The                         retain and grow the economic base of the 
division is made up of four budgets: City                                City.  This is achieved in part by the 
Commission, City Manager's Office, the City                              Business Partnership Initiative Program that 
Attorney and Contributions to Outside                                    began in 1998.  The City also achieves this 
Organizations. Major divisional responsibilities                         goal by encouraging economic development 
include establishment of policies, services, and                         through the use of various economic 
programs for citizens, administration of daily                           development incentives. This office also 
City operations, and providing guidance and                              works closely with Muskegon Area First to 
direction to all City Departments.  The                                  retain businesses and develop new 
Attorney's office prepares ordinances,                                   business opportunities. 
contracts, and other legal documents for the                         
City and provides legal advice.                                          Sustain the Natural, Cultural and 
                                                                         Recreational Resources of the 
Divisional Relationship to City                                          Community. 
Commission Goals                                                         The City Commission and the City       
                                                                         Manager's Office continually promotes this 
                                                                         goal through adoption and implementation 
     Take Leadership Responsibility for                                  of policies and programs (Blue Wave 
     Improving Race Relations and Diversity.                             designation for Pere Marquette Beach) that 
     The City Commission and the City                                    preserve the natural resources of the City. 
     Manager's Office will continue working to                           The Public Relations Committee works to 
     improve race relations through action and                           create awareness of the positive qualities of 
     policy. The City Manager's Office will work                         our city to inspire community pride, 
     on this goal with various community groups                          confidence and support.   The City has also 
     and by encouraging employees to                                     improved waterfront public access through 
     participate in the Institute for Healing                            the site planning process for new 
     Racism.  The City Commission, through the                           developments (i.e. Edison Landing). 
     Community Relations Committee, provides                              
     opportunities for positions on various boards                       Foster Strong Ties Among Governments 
     and committees to a diverse mix of citizens.                        and Community Agencies.  
     The City also co-sponsors the Martin Luther                         The City Commission and City Manager 
     King (MLK) Unity Day Breakfast and                                  work with various local governments and 
     provides financial support to the Institute for                     community agencies on a number of 
     Healing Racism.                                                     projects and programs.  Some of these 
                                                                         include, but are not limited to Muskegon 
     Foster Opportunities for City Youth.                                Area First, The Municipal Wastewater 
     The City Commission and City Manager's                              Committee, Central Dispatch, MATS, MAP, 
     Office support our youth through programs                           MALMC, and Muskegon Neighborhood 

      

                                                         Page 24



      Associations.  The City is working in 
      cooperation with the County on the                              CITY OF MUSKEGON, MICHIGAN 
      redevelopment of the former Muskegon mall                             
      site by cooperating on grant opportunities                           improve community and race relations. The 
      for infrastructure for the project.  The City is                     office will pursue cooperative efforts and 
      also involved in One Muskegon which is a                             potential functional cooperation and 
      multi-jurisdictional effort to pursue                                consolidation with other local governments.  
      cooperative ventures among area                                      This office will also continue to work to 
      municipalities. The City Manager is on the                           improve the economic climate in the City in 
      One Muskegon steering committee and is                               order to create an environment conducive to 
      the chair of the Tier I committee.                                   private investment.  Specific projects 
                                                                           include, but are not limited to the following: 
     Maintain and Enhance the                                              Smartzone Development, Promotion of 
      Neighborhoods of the City.                                           Seaway Industrial Park, Redevelopment of 
      The City Commission appropriates funds                               former Muskegon Mall property, Terrace 
      and sets policy to address blighting                                 Street Lots, Central Fire Station 
      influences in the City.  The City Manager is                         Redevelopment, Renaissance Zone 
      coordinating a multi-department effort to                            Implementation, and Farmers Market 
      improve implementation and operational                               Relocation. 
      issues to address blight.  The City                              
      Commission also works with Neighborhoods                             Contributions to Outside Organizations: The 
      Associations on their events and promotion                           Contributions budget provides the 
      of our City.                                                         mechanism for the City to fund several 
                                                                           agencies that assist the City in achieving its 
2007 Budget Highlights                                                     goals and providing certain services.  
                                                                           Funding for the Lakeside Business 
     City Commission: The City Commission will                             association has been added for 2007.   The 
      continue to improve community relations by                           following agencies are being funded in 
      utilizing the City's Public Relations                                2007: 
      Committee.  The Commission will also                             
      continue to work towards improving race                              1)  Neighborhood Associations of 
      relations within the City through financial                               Muskegon 
      contribution to the Institute for Healing                            2)  Muskegon Area Transit System 
      Racism and the Martin Luther King Jr. Unity                          3)  Muskegon Area First 
      Day Breakfast.                                                       4)  Institute for Healing Racism 
                                                                           5)  Veterans Memorial Day  
                                                                           6)  MLK Unity Day breakfast 
     City Attorney's Office: The City Attorney will                        7)  Muskegon County Animal Control (Cats) 
      continue to provide routine and special legal                        8)  Muskegon Area Labor/Management 
      services to the City.  The City Attorney will                             Committee 
      also prepare the necessary legal documents                           9)  Neighborhoods of Choice Program 
      (development agreements, etc.) relative to                           10) Community Access Line of the 
      special projects. Outside legal counsel will                              Lakeshore (CALL) - 211 Service 
      continue to work on the Nugent Sand matter                           11) Lakeside Business Association 
      and the Edison Landing Smartzone.                                
                                                                       
     City Manager's Office: The City Manager's                         
      Office will continue ongoing efforts to                          
                                                                       
                                                                       
                                                                       
  

       

                                                           Page 25



CITY OF MUSKEGON, MICHIGAN 

                            ADMINISTRATIVE SERVICES DIVISON 

DIVISION SUMMARY                                                        Foster Opportunities for City Youth. 
                                                                        We support this goal internally through the 
ADMINISTRATIVE SERVICES                                                 Julia Hackley Summer Internship Program, 
                                                                        which employs three to five students per 
Division Description                                                    year.  Externally, staff works closely with 
The Administrative Services Division provides                           particular initiatives throughout the County 
direct services and internal support services                           that seek to improve the employment 
necessary for the operation of the City.  The                           opportunity for young people. Through the 
division is made up of four departments:                                City's Government Day Program and Youth 
Administration Department, City Clerk's Office,                         in Government Program, we work closely 
Civil Service Office and the Affirmative Action                         with Muskegon Public Schools to promote 
Office. Major divisional responsibilities include                       and encourage youth participation in 
labor relations, legislative activities, public and                     government, including using students as 
community relations, election administration,                           election workers as well as holding field 
City Commission affairs, business registration                          trips in the spring and fall. 
and permits, personnel recruitment and record                            
keeping, workers compensation and risk                                  Promote Economic Stability, Diverse 
management, oversight of budgetary                                      Economic Growth and Redevelopment. 
expenditures among departments, effective                               Administrative services division meets this 
implementation of the City's Equal Employment                           goal through coordination of the following 
Opportunity Policy and contract compliance.                             programs: business registration, tax 
                                                                        abatements and contract compliance.  It 
Divisional Relationship to City                                         also fosters opportunities for women and 
Commission Goals                                                        minority owned businesses to participate in 
                                                                        the economic development process. 
     Take Leadership Responsibility for                                  
     Improving Race Relations and Diversity.                            Sustain the Natural, Cultural and 
     We support and promote this goal internally                        Recreational Resources of the 
     by fostering cultural sensitivity among                            Community. 
     employees and by exploring opportunities to                        This goal is met indirectly through our 
     operationalize the City's vision of having a                       written support of grant requests (by various 
     workplace that reflects the community.  We                         community agencies/groups) to enhance 
     also support this goal externally by our                           and promote cultural activities. 
     direct involvement with community groups                            
     undertaking initiatives toward improving                           Foster Strong Ties Among Governments 
     race relations in the community.  An                               and Community Agencies.  
     example of this is our direct involvement                          This division maintains very close working 
     with the Institute for Healing Racism which                        relations with many neighboring units of 
     was created for the purpose of healing and                         government as well as community agencies.  
     bridging the racial divide within the                              We meet this goal through project specific 
     community.  We also promote racial                                 partnerships, representation on common 
     diversity by directly encouraging residents                        boards and committees, shared resources 
     of minority groups to apply for appointment                        and value specific information, and often 
     to City boards and committees.                                     times through joint agency group meetings 
                                                                        throughout the year. 
                                                                    
      

      

                                                        Page 26



     Maintain and Enhance the 
   Neighborhoods of the City.                                     CITY OF MUSKEGON, MICHIGAN 
   The Administration Division contributes to                           
   the City's fight against blight through 
   aggressively investigating environmental                            City Clerk's Office: No staffing changes.   
   and sidewalk appeals.  It reevaluates                               We will continue to work with the 
   approaches to service delivery aimed at                             Commission on their Community Relations 
   curtailing conflict between the general                             and Public Relations Committees projects 
   citizenry and staff attempting to implement                         and stride to provide improved public 
   policies set by the City Commission.                                communication.  We will publish The 
                                                                       Channel newsletter and provide access to it 
                                                                       through the web.  We will continue to 
2007 Budget Highlights                                                 update and add to our City Clerk web page 
                                                                       to provide more information and ways to do 
                                                                       business through the city web page.  This 
        Administration Department: no staffing                         budget reflects costs of four elections.  
        changes.  Although such                                        (Schools will be billed for their elections.) 
        programs/initiatives as Employee                               Direct mail will remain discontinued. 
        Education Reimbursement, 
        organization-wide employee training and                        Civil Service Department:  no staffing 
        City-wide Citizen Survey were not                              changes. The Personnel Analyst position 
        budgeted, for the most part, we foresee                        remains vacant.  Job Line remains 
        continuation of services at current                            discontinued. The proposed operating 
        levels.  A high priority item will be to                       budget solely provides for continuation of 
        successfully negotiate new collective                          basic services. Efforts to fine-tune use of 
        bargaining agreements with two to four                         limited department staffing and material 
        of our five labor groups: bargaining with                      resources in order to advance output will 
        Command and Patrol Units will begin in                         continue. Improvements in relaying 
        September 2006 and could carry over                            information through the City's intranet and 
        into 2007; and Fire and DPW-Unit 2                             internet sites, as well as publication of the 
        bargaining sessions will begin in                              Employees Newsletter will continue. 
        September of 2007. We will also 
        continue oversight and coordination of                    Future Outlook  
        the organization's administrative needs.                   Following are the major goals of the 
        Affirmative Action Department:  No                        Administration Division incorporated in the 
        staffing changes.  We will continue                       proposed budget: 
        responsibility for the Worker's                                Administrative Services: 
        Compensation program, contract                                      Negotiate two to four union contracts 
        compliance, equal employment                                        and manage grievances filed. 
        opportunity, and community outreach.                                Continue to work towards improving 
        The 2007 Budget also provides for                                   Labor / Management relations. 
        implementation of the Equal 
        Employment Opportunity Committee's                                  Continue on-going efforts to improve 
        goal to improve opportunities for                                   race relations. 
        minority representation among city                                  Foster the accomplishment of the City 
        seasonal Lifeguard Positions. We will                               Commission Vision, Value and Mission 
        assume the Risk Management                                          within the organization and the 
        responsibilities of the organization. Both                          community. 
        the hardship contingency fund and                          
        National recruitment efforts remain                            Affirmative Action: 
        discontinued.  However, recruitment at                              Work more closely with the Civil Service 
        College-University Career Days will                                 and Finance departments to implement 
        continue. 
    

                                                       Page 27



                                the Workers Compensation and Risk 
                                Management Program.                                     CITY OF MUSKEGON, MICHIGAN 
                                Meet Equal Employment Opportunity                        
                                and Affirmative Action efforts.                          
                                Continue to pursue contract compliance.                  
                            
     City Clerk's Office:                                                                
                                Continue with current programs.                          
                                Continue to Design Clerk's Office Web 
                                page with links to program applications                  
                                such as licensing, permits, voter 
                                registration, and absentee ballot.                       
                                Enhance existing voter registration 
                                programs with seniors, students, and                     
                                neighborhood groups.                                     
                                Continue training of staff and residents 
                                on all new election equipment.                           
                            
     Civil Service:                                                                      
                                Revise employee orientation process. 
                                Update Civil Service Rules &                             
                                Regulations or develop new Human                         
                                Resource implementation guidelines (if 
                                the issue to eliminate Civil Service                     
                                passes in the November election). 
                                Conclude personnel file reorganization.                  
                                Continue development of the 
                                department's web pages.                                  
                                Revamp employee handbook.                                
                       
                            

                                                                             Page 28



CITY OF MUSKEGON, MICHIGAN 

                                   FINANCIAL SERVICES DIVISON 

DIVISION SUMMARY                                                            in shaping the perception that citizens, 
                                                                            investors, bond rating agencies and others 
Financial Services                                                          have of the City of Muskegon.  Staff of the 
                                                                            Financial Services Division take pride in 
Division Description                                                        providing excellent financial leadership for 
The Financial Services Division is made up of                               the City in accordance with the highest 
the following departments: Finance                                          professional standards.  
Administration, City Treasurer's Office, Income                         
Tax Administration and Information Systems.                                 Foster Opportunities for City Youth. 
The division is responsible for all financial                               The Division participates in Phoenix 
management activities of the City; specifically,                            University and Grand Valley State 
property tax collections, utility billing and                               University's Internships programs.  Staff 
collections, payroll and employee benefits,                                 spends quality time to provide personal and 
accounts payable and accounts receivable,                                   professional development to interns which 
income tax collections and management of the                                ensures their competitive advantage when 
City's computer network and related information                             entering the job market.  Additionally 
systems.  Additionally, the division oversees the                           several staff members volunteer in the 
following contractual relationships:                                        schools through Junior Achievement.  
                                                                        
          Muskegon County Equalization                                      Promote Economic Stability, Diverse 
          Department which performs all property                            Economic Growth and Redevelopment. 
          tax assessment services for the City.                             The Finance Division plays a key role in 
          L. C. Walker Arena and the associated                             analyzing the financial impact, budgeting 
          contract with the Arena Management                                and identifying funding sources for City 
          Group LLC.                                                        economic development initiatives such as 
                                                                            the Mall Redevelopment, Smart 
Divisional Relationship to City                                             Zone/Edison Landing, Seaway Industrial 
                                                                            Park and the Farmers Market relocation. 
Commission Goals                                                            Ultimately, implementation and future 
                                                                            oversight of these initiatives becomes the 
     City Mission Statement: To improve the                                 responsibility of the Finance Division 
     quality of life for the citizens of                                    through activities such as bond issuance 
     Muskegon through stewardship of                                        and tax increment administration. 
     resources, excellent service and                                   
     leadership for the greater community         .                         Foster Strong Ties Among Governments 
     It is primarily in the area of resource                                and Community Agencies.  
     stewardship that the Finance Division                                  The Finance Division works closely with 
     contributes to this mission.  Employees of                             other governmental units to ensure services 
     the division work to maximize the financial                            are provided in a cost-effective manner.  
     resources available to support municipal                               Examples include tax collection services 
     services through revenue collections,                                  provided by the City Treasurer's Office, dog 
     investments, and sound financial                                       license fee collection for Muskegon County 
     management practices.  Also, they provide                              Vector Control and the intergovernmental 
     the City Commission and department                                     agreement with Muskegon County for 
     managers with timely and accurate financial                            assessment services.  Additionally, staff is 
     information critical to prudent and effective                          involved with the One Muskegon 
     stewardship. Sound finances are important                              intergovernmental cooperation initiative. 

      

                                                            Page 29



         
     Develop and Maintain City Infrastructure                   CITY OF MUSKEGON, MICHIGAN 
      and Facilities.                                                 
      The Finance Division strives to be on the                           efficiency in both the Treasurer's Office and 
      cutting edge of new technology.                                     the Income Tax Office. The 2007 budget 
      Improvements and updates to the security                            contemplates an additional part-time 
      of the City's information network protect the                       Customer Service Representative II position 
      integrity of our information and continual                          with continuation of in-house and 
      enhancements to the City' web site and                              outsourced billing services and collection 
      Intranet site provide access to more                                services. The department is committed to 
      information and services to City of                                 working on opportunities that will improve 
      Muskegon employees and citizens.                                    productivity and operational efficiency 
      Recently the City of Muskegon's web site                            through the use of technology. 
      was rated 5th out of 534 city and villages in                   
      the State of Michigan by Cyber-state.org.                           Income Tax Administration: Staffing levels 
                                                                          will remain constant.  The Income Tax 
     Maintain and Enhance the                                             Administrator has now taken over the 
      Neighborhoods of the City.                                          additional duties of Deputy Treasurer.  This 
      The Division's Reengineering Committee is                           change along with the physical move of the 
      continually reevaluating techniques for                             Income Tax office closer to the Treasurer's 
      improving our collection efforts especially on                      Office will help these two offices work 
      environmental invoices.  The Committee                              together to streamline collection efforts and 
      has also been instrumental in updating and                          increase overall efficiency. The budget  
      centralizing data bases used by City                                provides for continued collection and tax 
      departments for everything from City                                enforcement activities.  
      mailings to billing information.  These efforts                      
      will reduce blight in our neighborhoods and                         LC Walker Arena:  The various contracts for 
      increase the flow of information to residents.                      operation of the arena expired in 2006 and 
                                                                          were replaced with one contract which 
2007 Budget Highlights                                                    reduces the City's financial obligations and 
                                                                          provides incentives for the management to 
     Finance Administration: No staffing changes                          utilize the arena to its fullest. The 2007 
      are proposed.  The budget provides for                              budget provides for the General Fund to pay 
      continuation of current services.                                   $235,000 in Management Fees and to 
                                                                          maintain a Capital Improvements Fund for 
     Assessing Services: The 2007 budget                                  the Arena.  In 2006 a "clubroom" project at 
      contemplates continuation of the contract                           the Western Avenue end of the arena was 
      with the Muskegon County Equalization                               contemplated. However, construction bids 
      Department for all assessment services.                             were higher than expected and the project 
      The cost of this contract is tied to the actual                     was deferred. This project will be explored 
      year-to-year increase in the City's total                           again in 2007 to determine if it will be self-
      taxable property valuation.  For 2007, this                         supporting and help reduce the City's 
      cost increase is about two and a half                               financial obligation to the arena. 
      percent (2.58%).                                                
                                                                          Information Technology: As proposed in 
     City Treasurer: The Revenue Collections                              2005, a computer technician position has 
      Administrator position has been eliminated.                         been eliminated from the Information 
      The Income Tax Administrator is now the                             Technology Department.  The department is 
      Income Tax Administrator/Deputy                                     focusing efforts on maintaining the same 
      Treasurer.  This change will help coordinate                        level of service for network and data 
      collection efforts between the two                                  operations. Services such as 24x7 support, 
      departments and provide for greater cross                           telephone call center support and other non 
      training opportunities improving the  

       

                                                          Page 30



     critical operations have been eliminated and 
     replaced with electronic solutions.                     CITY OF MUSKEGON, MICHIGAN 
                                                                   
Future Outlook                                                              information more efficiently than our 
                                                                            existing database. 
Following are some of the major goals of the                                Continue to increase the number of 
Finance Division that are incorporated in the                               businesses that electronically submit 
2007 proposed budget:                                                       their W-2's and W-3 information to our 
                                                                            department. 
     Finance Administration                                                 Increase the number of direct deposit 
          Constant monitoring of the City's budget                          refunds. 
          so management has the most up-to-                                 To accept an Individual tax return 
          date accurate information to respond to                           electronically or have the ability to scan 
          changes as quickly as possible.                                   information from a tax return directly into 
          Continue efforts to move all employee                             our tax software system. 
          groups over to the Municipal                             
          Employees' Retirement System                                 L C Walker Arena 
          (MERS).                                                            Continued collaboration with Arena 
          Increase ACH vendor payments using                               Management to increase the number of 
          GEMS software enhancement.                                        events and overall attendance at the 
          Continue working with One Muskegon in                             Arena. 
          the areas of purchasing and shared                                Explore possible retail opportunities  
          financial services                                                at the Arena. 
                                                                            Devise other income-producing 
     Assessing Services                                                     strategies. 
          Update the mapping of the entire city                             Pursue sale of Naming Rights to the 
          and convert the drawing into a new geo-                           Arena. 
          database.                                                     
          Activate and integrate an elevation                          Information Technology 
          model and digital orthophotography as                             Continue adding features to the City's 
          GIS layers.                                                       web portal (website) that will empower 
                                                                            and enable customers to perform 
     City Treasurer                                                         functions online, such as paying bills, 
          Investigate possible utility billing                              record retrieval and more.  By making 
          software solutions that will improve                              information available and moving 
          productivity and operational efficiency.                          additional functions to our web portal, 
          Implement new cash receipting software                            Information Technology can help reduce 
          system which is compatible with other                             the burden of staff reductions and 
          systems currently used within the City.                           limited time for other departments. 
          Research and implement alternative                                Continue to help departments recognize 
          payment methods to include accepting                              cost savings through the use of 
          payment of winter property taxes by                               technology and business process 
          credit card on-line and by telephone.                             review. 
                                                                           Migrate remaining databases to a 
     Income Tax Administration                                              standard Database Management 
          Work with an outside vendor to                                    System for future data mining, research 
          implement a web based withholding                                 and support. 
          payment program.                                                  Create an online directory of businesses  
          Consider the reorganization of our                                and their associated websites. For a 
          withholding database.   Our office has to                         minimal fee, any business that registers 
          determine if our current software                                 with the city will have the option of being 
          package can manage our withholding                                listed in this directory regardless of 
                                                                            location. 
      

                                                       Page 31



CITY OF MUSKEGON, MICHIGAN 

                                      PUBLIC SAFETY DIVISION 

DIVISION SUMMARY                                                       Officer is being assigned full-time to the 
                                                                       high school. 
POLICE DEPARTMENT                                                       
                                                                         Promote Economic Stability, Diverse 
Department Description                                                 Economic Growth and Redevelopment. 
The Muskegon Police Department consists of                              The department actively partners with 
the following bureaus: Patrol, Investigations,                         developers and local businesses to address 
and Administration. Each bureau encompasses                            parking, traffic and security concerns.   
units of related functions that contribute toward                        
the department's overall goal accomplishment.                            Sustain the Natural, Cultural and 
Primary responsibilities of the department                             Recreational Resources of the 
include law enforcement, investigations, and                           Community. 
the maintenance of public records.  The police                         In partnering with groups and coordinating 
department operates within the context of                              events such as Summer Celebration, Unity 
community policing i.e., forming community                             Fest and Shoreline Spectacular, the 
partnerships to reduce crime and enhance the                           department has become adept at handling 
quality of life within the city.                                       special events.  Department staff takes 
                                                                       great pride in the success of these events.  
Departmental Relationship to City                                       
Commission Goals                                                         Foster Strong Ties Among Governments 
                                                                       and Community Agencies.  
                                                                       The department works in conjunction with 
     Take Leadership Responsibility for                                other regional law enforcement agencies 
     Improving Race Relations and Diversity.                           such as West Michigan Enforcement Team 
     The department continues its efforts to                           (WEMET) in coordinating drug enforcement.  
     recruit members of the minority community                         This association has produced favorable 
     and women. The department has                                     results for the city.  The department also 
     established strong ties with the NAACP,                           works closely with Child Abuse Council and 
     various faith-based organizations and our                         Every Woman's Place to address domestic 
     Hispanic community.  We actively                                  violence and child abuse issues. 
     participate in community forums and                                
     neighborhood meetings. Our Citizen's 
     Police Review Board is an integral part of                          Develop and Maintain City Infrastructure 
     our outreach. The department is committed                         and Facilities. 
     to building trust, especially with our citizens                   Staff is part of both the city and county 
     from minority groups.                                             Emergency Management Team.  With the 
                                                                       onset of Homeland Security efforts, there 
                                                                       are responsibilities associated with the 
     Foster Opportunities for City Youth.                              security of a number of public facilities. 
     The department continues to have a strong                          
     presence at, and commitment to, our 
     schools through programs such as Keep                               Maintain and Enhance the 
     Kids in School (KKIS) and Kids and Cops.                          Neighborhoods of the City. 
     The neighborhood officers have been                               Community policing will continue to serve as 
     directed to spend a portion of each week in                       the cornerstone in the department's efforts 
     their neighborhood elementary schools and                         to provide effective police services to our 
     the middle schools.  A Community Police                           community.  Our organizational structure is 
                                                                       designed to encourage a team approach in 
                                                                       addressing issues within the 

      

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      neighborhoods. The department will                           CITY OF MUSKEGON, MICHIGAN 
      continue to address the perception of crime 
      within our city.                                              
                                                                        Focus on quality of life issues (blight) and 
2007 Budget Highlights                                                  the perception of crime in the 
                                                                        neighborhoods. 
     Our Citizen's Police Academy has been                          
      very successful.  Therefore, we will continue                 
      the academy during this fiscal period.                       Investigations Bureau : 
                                                                    
     State training funds (Public Act 302) should                       Continue to pursue technology that will aid 
      remain constant and will be available to us.                      in the development of effective investigation 
      We have pooled a portion of these funds                           strategies. 
      with 70 other police agencies in west                              
      Michigan and formed a training consortium.                        Continue to improve our caseload 
      This allows for very low cost training.                           management.  Ensure that detectives are 
                                                                        being assigned to cases in an effective and 
     Due to the passage of a millage increase for                       efficient manner. 
      Muskegon Central Dispatch, municipal                          
      assessment costs will be frozen during                            Provide a coordinated response to narcotics 
      2006.                                                             violations throughout the city with an 
                                                                        emphasis on street-level and neighborhood 
     Managers have been directed to provide                             enforcement. 
      strict control and oversight of our overtime                  
      and operational costs.                                            Partner with neighborhood and patrol 
                                                                        officers in developing strategies to resolve 
     Pursue functional consolidation with other                         crime issues. 
      law enforcement agencies.                                     
                                                                        Maintain positive, working relationships with 
Patrol Bureau:                                                          the media. 
                                                                    
     A School Resource Officer is assigned to                           When necessary, utilize regional task forces 
      Muskegon High School on a full-time basis.                        to investigate violent crimes. 
                                                                    
     Continue the Neighborhood Response                                 Serve as a partner with other local police 
      Team.                                                             agencies and the Michigan State Police in a 
                                                                        regional computer crimes investigation unit. 
     In conjunction with Public Works, continue                     
      to monitor the quality of our vehicle fleet.                 Administration: 
      Review vehicle assignments to maximize                        
      the use of our fleet.                                             Maintain an "open door" policy for our 
                                                                        community.  Focus on outreach to our 
     Provide consistent traffic enforcement in                          minority communities. 
      those areas of the city, including                                 
      neighborhoods, with identified needs.                             Serve as a leader and mentor in the 
C                                                                       development of the department's 
                                                                        management team. 
                                                                    
     Maintain strong ties with our neighborhood 
      schools.                                                          Develop a Vision/Mission/Value statement 
                                                                        for the department. 
                                                                    
     Schedule the neighborhood officers to 
      better meet the needs of the community.                           Ensure that our complaint process is open, 
                                                                        fair and accessible to our community. 
       

                                                        Page 33



     Foster positive labor-management relations.                    CITY OF MUSKEGON, MICHIGAN 
                                                                          
     Fully utilize our crime mapping and crime                           Promote the Economic Stability, Diverse 
        analysis capabilities. Begin the process of                      Economic Growth and Redevelopment  
        evaluating our 30 year-old patrol districts.                     Inspections staff and fire prevention staff will 
                                                                         assist homeowners, contractors and 
     In conjunction with court officials, review the                     developers in meeting their code 
        scheduling of officers with the goal of                          obligations.  Our responsibility will be 
        reducing overtime costs.                                         carried out in a professional, customer-
                                                                         service oriented manner.   
     Develop alternative sources of funding for                           
        community programming.                                           Sustain Natural, Cultural and 
                                                                         Recreational Resources of the 
     Be aggressive in seeking out non-                                   Community  
        personnel-based grants.                                          Our ice and water rescue capabilities in 
                                                                         conjunction with our water-borne firefighting 
                                                                         function provides a safety net for those 
FIRE DEPARTMENT                                                          utilizing the waterways within our city. 
                                                                          
Department Description                                                   Foster Strong Ties Among Government 
The Muskegon Fire Department provides the                                and Community Agencies  
following services: fire suppression, emergency                          The department currently uses mutual aid 
medical service, fire prevention, specialized                            with neighboring jurisdictions to deliver life 
rescue, building and trade inspections and code                          safety services to citizens in the most rapid 
enforcement.  The department provides the                                and efficient manner possible.  Staff will 
aforementioned services as well as fire                                  continue to explore the possibility of a 
prevention and fire safety education for our                             regional training center as well as 
community.                                                               participating in area-wide training programs 
                                                                         and the development of regional specialty 
Departmental Relationship to City                                        teams.  An advisory committee has been 
Commission Goals:                                                        formed to provide feedback to the building 
                                                                         and trade inspectors as to customer service 
     Take Leadership Responsibility for                                  issues and inspection procedures. 
        Improving Race Relations                                          
        The department will continue its efforts to                      Develop and Maintain Infrastructure and 
        recruit and retain members of the minority                       Facilities  
        community and women.  Department                                 Continue to review the current status of our 
        personnel will participate in community                          facilities and apparatus as to needed repairs 
        forums and neighborhood meetings.  Staff is                      and replacement.  
        committed to building and maintaining trust,                 
        especially with members of our minority                          Maintain and Enhance the Residential 
        communities.                                                     Neighborhoods of the City   
                                                                         The department will continue to meet with 
                                                                         neighborhood associations in an effort to 
     Foster Opportunities for City Youth                                 become familiar with neighborhood-specific 
        Our Firematch and Juvenile Firesetter                            issues.  Staff and apparatus are also 
        programs are designed to help troubled                           present at neighborhood functions.  
        kids.  We continue to partner with schools                       Inspections staff will continue to focus on 
        and community groups in an effort to                             identifying dangerous structures and other 
        establish positive relationships with youth                      blight related issues. 
        within our city.                                                  
                                                                          

         

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                                                                  CITY OF MUSKEGON, MICHIGAN 
     2007 Budget Highlights                                        
                                                                   
     Continue our review of purchasing practices                   
     within the department.  Eliminate                             
     unnecessary purchases when possible.                          
                                                                   
     Continue to utilize a training calendar in                    
     order to better track and maintain                            
     certifications and mandated training.                         
                                                                   
     Managers have been directed to provide                        
     strict control and oversight of our overtime                  
     and operational costs.                                        
                                                                   
     Aggressively seek non-personnel based                         
     grants.                                                       
                                                                   
     Foster positive labor-management relations.                   
                                                                   
     Develop a Vision/Mission/Value statement                      
     for the department.                                           
                                                                   
     Monitor construction of the new Central Fire                  
     Station (completion: 2007)                                    
                                                                   
     Continue with customer service training                       
     within the Inspections Office.                                
                                                                   
     Pursue functional consolidation with other                    
     fire service and inspection agencies.                         
                                                                   
     Consider changes in the Housing                               
     Registration process that would be more                       
     customer friendly and would reduce the                        
     amount of staff time involved in the process.                 
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
 


      

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CITY OF MUSKEGON, MICHIGAN 

                                       PUBLIC WORKS DIVISON 

DIVISION SUMMARY                                                        Recreation Staff within the Leisure Services 
                                                                        Department for their recreation programs 
Public Works Services                                                   with trash pickup and facility management. 
                                                                        In addition, the Parks staff provides support 
Division Description                                                    for privately funded youth activities such as 
The Public Works Services Division is                                   the one at St. Joseph Park. Youth football 
responsible for maintaining the City's                                  receives substantial Parks support at 
infrastructure, the life-blood of the City.                             Seyferth, McCrea, and Smith Ryerson 
                                                                        parks. Support is given to the Muskegon 
This division consists of four general                                  School system for their middle and high 
departments:                                                            school youth sports and summer school 
          Public Works Department  comprising                           programs. Parks staff works directly with 
          of Streets, Street Lights, Traffic Signals,                   Volunteer Muskegon and with the MRC 
          Signs and Barricades, Cemeteries,                             group at Smith Ryerson in support of youth 
          Parks, Forestry, Parking Operations,                          boxing and other programs. A major youth 
          Special Event Support;                                        soccer program is supported at Reese 
                                                                        Field. 
          Utilities Department  comprising of                            
          Water Filtration Plant, Water/Sewer 
          Maintenance, Storm Water                                        Promote Economic Stability, Diverse 
          Management and Sanitation,                                    Economic Growth and Redevelopment. 
          Equipment;                                                    The Public Works Services Division works 
                                                                        directly with developers and architects 
          Engineering Department  comprising of                         during design and construction to provide