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CITY OF MUSKEGON, MICHIGAN

                                  FINANCIAL SERVICES DIVISON

DIVISION SUMMARY                                    financial leadership for the City in accordance
                                                    with the highest professional standards. 
Financial Services

Division Description                                     Foster Opportunities for City Youth.
The Financial Services Division is made up of          The Division participates in the City's Julia
the following departments: Finance                     Hackley and Baker College's Internships
Administration, City Treasurer's Office, Income        programs.  Staff spends quality time to
Tax Administration and Information Systems             provide personal and professional
Administration.  The division is responsible for       development t to interns which ensures their
all financial management activities of the City;       competitive advantage when entering the
specifically, property tax collections, utility        job market.  Additionally several staff
billing and collections, payroll and employee          members volunteer in the schools through
benefits, accounts payable and accounts                Junior Achievement and the HOST
receivable, income tax collections and                 program.
management of the City's computer network
and related information systems.  Additionally,          Promote Economic Stability, Diverse
the division oversees the contract with                Economic Growth and Redevelopment.
Muskegon County under which the County                 The Finance Division plays a key role in
Equalization Department performs property              analyzing the financial impact, budgeting
assessment services for the City.                      and identifying funding sources for City
                                                       economic development initiatives such as
Divisional Relationship to City                        Smart Zone/Edison Landing, Seaway
Commission Goals                                       Industrial Park, Cross Lake Ferry and
                                                       Renaissance Zone. Ultimately,
                                                       implementation and future oversight will be
City Mission Statement: To improve the                 the responsibility of the Finance Division
quality of life for the citizens of Muskegon           through activities such as bond issuance
through stewardship of resources, excellent            and tax increment administration.
service and leadership for the greater
community."  It is primarily in the area of              Foster Strong Ties Among Governments
resource stewardship that the Finance Division         and Community Agencies.
contributes to this mission.  Employees of the         The Finance Division works closely with
division work to maximize the financial                other governmental units to ensure services
resources available to support City services           are provided in a cost-effective manner.
through revenue collections, investments, and          Examples include tax collection services
sound financial management practices.  Also,           provided by the City Treasurer's Office and
they provide the City Commission and                   the intergovernmental agreement with
department managers with timely and accurate           Muskegon County for assessment services.
financial information critical to prudent and            
effective stewardship.  Additionally, sound              Develop and Maintain City Infrastructure
finances are important in shaping the                  and Facilities.
perception that citizens, investors, bond rating       The Finance Division strives to be on the
agencies and others have of the City of                cutting edge of new technology and
Muskegon.  Staff of the Financial Services             financial resources available to support City
Division take pride in providing excellent             resources through revenue collections,
                                                       investments, information technology and



    sound financial management practices.  The
    division provides timely and accurate              CITY OF MUSKEGON, MICHIGAN
    financial information critical to effective
    management.  Improvements and updates                  and operational efficiency through the use
    to the security of the City's information              of technology.
    network protect the integrity of our                    Income Tax Administration: Staffing levels
    information and continual enhancements to              will remain constant.  The budget 
    the City' web site and Intranet site provide           provides for continued aggressive collection
    access to more information and services to             and tax enforcement activities. 
    City of Muskegon employees and citizens.                Information Technology: No staffing
    Recently the City of Muskegon's web site               changes are proposed. Continue to provide
    was listed in the Detroit Free Press as one            current levels of service for data center
    of the few excellent examples of interactive           operations, network services, application 
    local government web sites in Michigan.                development and maintenance and end
                                                           user computer support.
     Maintain and Enhance the
    Neighborhoods of the City.
    The Division's Reengineering Committee is          Future Outlook
    continually reevaluating techniques for
    improving our collection efforts especially on     Following are some of the major goals of the
    environmental invoices.  The Committee             Finance Division that are incorporated in the
    has also been instrumental in updating and         2004 proposed budget:
    centralizing data bases used by City
    departments for everything from City                    Finance Administration
    mailings to billing information.  These efforts             Constant monitoring of the City's budget
    will reduce blight in our neighborhoods and                so management has the most up-to-
    increase the flow of information to residents.             date accurate information to respond to
                                                               changes as quickly as possible.
2004 Budget Highlights                                          Continue GASB 34 Implementation.
     Finance Administration: No staffing changes               The 2002 Comprehensive Annual
    are proposed.  The budget contemplates                     Financial Report featured the new
    discontinuing production and distribution of               financial reporting format.  However
    The Citizens Summary Financial Report.                     work still needs to be done to complete
    Additionally the investment management                     the capital assets and infrastructure
    agreement we have with MBIA is no longer                   reporting requirements.
    cost effective and will be discontinued.                    Continue work on City insurance
      Assessing Services: The 2004 budget                      contracts to reduce costs and enhance
    contemplates continuation of the contract                  our service while maintaining benefit
    with the Muskegon County Equalization                      levels.
    Department for all assessment services.
    The cost of this contract is tied to the actual         Assessing Services
    year­to-year increase in the City's total                   Begin work on Personal Property audits
    taxable property valuation.  For 2004, this                with help from a possible state grant. 
    cost increase is less than one percent (1%).                Integrate new ortho-digital aerial
                                                               photography with computerized
     City Treasurer: A reduction in staffing is                assessing system and with City's GIS
    proposed.  This could impact service                       system.
    delivery to the public. The budget
    contemplates continuation of billing and                City Treasurer  
    collection services at their present levels,                To increase collection efforts while
    while reducing other general services. The                 reducing the staffing level.  There will be
    department is committed to working on                      a more aggressive use of an outside
    opportunities that will improve productivity.



        collection agency for delinquent
        accounts.                                     CITY OF MUSKEGON, MICHIGAN
        Increase marketing of the city's e-
        government (on-line) and automatic                 or advertisements. When a business
        water/sewer utility bill payment options.          registers with the Clerk's office, they will
        Continue to seek opportunities to make             have the option to have a small ad or
        more city services (that are currently             link placed on our website for an
        transacted in person at City Hall)                 additional fee.
        available through the internet, providing            Establish a Computer Based Training
        alternate options to help decrease lines           program to replace the traditional
        at the counter and delays on the phone.            training program.  Cost savings, flexible 
                                                           schedules and self paced training are
     Income Tax Administration                             just a few of the benefits gained. 
        Electronically download 40 percent of
        our W-2 information from employers
        directly into our software. Electronic
        downloads are the first major obstacle to
        Internet tax filing --- a long-term goal. 
        Increase withholding tax compliance
        using existing software, creating custom
        reports, automated billing and legal
        action.
        Issue electronic tax refunds through the
        ACH system.  This will save the City
        thousands of dollars a year by
        eliminating or decreasing bank fees,
        check costs, and postage.

     Information Technology
        Enable more departments to maximize
        their web presence and generate
        revenue by offering online services to
        local companies.  Rather than incurring
        the cost of dispatching an employee to
        City Hall, companies will have the option
        to pay a yearly or transactional fee for
        customer lookup, accident reports and
        other information through the internet.
        Initial focus will be placed on the
        Treasurer's office and the Police
        Department.
        Continue to help departments recognize
        cost savings through the use of
        technology and business process
        review.
        Migrate remaining databases to a
        standard Database Management
        System for future data mining, research
        and support.
        Create a portal for local "registered"
        businesses that will allow a web
        presence through the use of links and/