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      City of Muskegon,      
      Michigan 


  2006 Proposed Budget and 
  Quarterly Budget Reforecast 

      For The Year Beginning January 1, 2006 













  



 



                CITY OF MUSKEGON, MICHIGAN 
 
                     PROPOSED BUDGET 
 
           FOR THE YEAR BEGINNING JANUARY 1, 2006 
   

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



 



    CITY 
                                      OF 
                                             MUSKEGON, 
                                                                    MICHIGAN 
 
                        Budget for the Year Ended December 31, 2006 
 
                                     TABLE OF CONTENTS 
                                                                                                
                                                                                               
 INTRODUCTORY SECTION                                                                         5 
 City Manager's Budget Message                                                               7 
 Summary Charts and Graphs                                                                 15 
         
Division Budget Narratives                                                                 21             
        Public Representation Division                                                     22        
        Administrative Services Division                                                   24 
        Financial Services Division                                                        27        
        Public Safety Division                                                             30 
        Public Works Division                                                              34 
        Leisure Services Division                                                          37        
        Community & Economic Development Division                                          39 
         
 I.  GENERAL FUND BUDGET                                                                  43  
 Budget Summary                                                                            44        
 Detailed Revenue Summary by Revenue Classification                                        45             
 Detailed Expenditure Summary by Function                                                  49        
 Comparison of Revenues and Costs of Selected Functions                                    58 
   
                                                        




                                                     Page 1



                                         CITY OF MUSKEGON, MICHIGAN 
 
                               Budget for the Year Ended December 31, 2006 
 
                                     TABLE OF CONTENTS - CONTINUED 
                                                                                                                                              
                                                                                                                               
II.  NON-GENERAL FUND BUDGETS                                                                                             59  
 Major Streets and State Trunklines Budget                                                                                60              
 Local Streets Budget                                                                                                     61 
           
L.C. Walker Arena Budget                                                                                                  62 
 Budget Stabilization Fund                                                                                                63 
 Land Reutilization Budget                                                                                                64 
 Criminal Forfeitures Budget                                                                                              65 
 Tree Replacement Budget                                                                                                  66 
 Local Development Finance Authority I Budget                                                                             67 
 Local Development Finance Authority II Budget                                                                            68 
 Local Development Finance Authority III Budget                                                                           69 
 Tax Increment Finance Authority Budget                                                                                   70 
 Downtown Development Authority  Budget                                                                                   71 
 Sidewalk Improvement Budget                                                                                              72 
 Public Improvement Budget                                                                                                73 
 State Grants Fund Budget                                                                                                 74 
                                                                     
Marina & Launch Ramp Budget                                                                                               75              
           
Equipment Budget                                                                                                          76 
    

                                                                Page 2



                             CITY OF MUSKEGON, MICHIGAN 
 
                        Budget for the Year Ended December 31, 2006 
 
                           TABLE OF CONTENTS ­ CONTINUED 
                                                
 II.  NON-GENERAL FUND BUDGETS (continued)  
 Public Service Building Budget                                           77 
 Engineering Services Budget                                              78 
 General Insurance Fund Budget                                            79 
 Water Fund Budget                                                        80                   
 Sewer Budget                                                             81              
    III. APPENDICES                                                             
 Debt Service Requirements                                              83           
 2005 Budgeted Capital Improvements                                     85 
 2006 Budgeted Capital Improvements                                     89           
 Budgeted Personnel Complement                                          93           
 2006 Budget Resolution                                                 99                
 














                                           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        
 Clerk                  August 30, 2005 
(231)724-6705            
FAX (231)724-4178 
                         
Comm. & Neigh. 
Services                Honorable Mayor and City Commissioners: 
(231)724-6717            
FAX (231)726-2501 
                        Enclosed is the proposed 2006 Budget for the City of Muskegon.  The current economic situation, 
Engineering             rising personnel and operational costs and reductions and uncertainties in state shared revenue 
(231)724-6707 
FAX (231)727-6904       continue to have negative impacts on the City's General Fund Budget. To the extent possible, the 
                        2006 spending plan was prepared considering the type and scope of programs the City Commission 
Finance 
(231)724-6713           identified as priorities during the January strategic planning process and subsequent budget meetings 
FAX (231)724-6768 
                        throughout 2005.  For the most part, the proposed budget is a status quo budget, with few significant 
Fire Department         changes 
(231)724-6792 
FAX (231)724-6985         
                        The City's total proposed 2006 spending plan (including all budgeted funds) is $63,714,084 as 
Income Tax 
(231)724-6770           compared to $64,602,550 originally proposed for 2005.   In addition to modestly scaled back 
FAX (231)724-6768 
                        operating budgets, the decrease is attributable to the fact that large capital projects including Shoreline 
Info. Technology        Drive and the water filtration plant improvements were completed in 2005. Capital outlays for routine 
(231)724-4126 
FAX (231)722-4301       water, sewer and street improvements will continue in 2006. 
                         
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 Budget 
 Leisure Services       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        
 Planning/Zoning        General Fund  
(231)724-6702            
FAX (231)724-6790 
                        Proposed general fund expenditures are $23,927,324, up 2.63% from the 2005 revised estimate of 
Police Department 
(231)724-6750           $23,314,254.  Revenues for 2006 are estimated at $23,620,716, up very slightly (.32%) from the 2005 
FAX (231)722-5140       revised estimate of $23,544,750.   Revenues are not growing at a pace to keep up with rising costs 
 Public Works           largely due to the economy and increased personnel-related costs.   State shared revenues for 2006 are 
(231)724-4100           projected to remain at their current much reduced level.  No further cuts are specifically anticipated, 
FAX (231)722-4188 
                        but the risk of further cuts remains. 
Treasurer 
(231)724-6720             
FAX (231)724-6768       The proposed general fund budget is based upon conservative estimates of revenue and realistic 
 Water Billing          projections of expenses and is structured so as to allow the city to maintain a fund balance equal to 
(231)724-6718           10% of prior year expenditures, in accordance with City Commission policy.    
FAX (231)724-6768 
                         
Water Filtration         
(231)724-4106 
FAX (231)755-5290 

                                                                  Page 7



                                                                               
 
      Several changes to the general fund budget are proposed for 2006 and are worthy of note. These include the 
      following: 
       
          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 adjustments to the personnel 
            complement are included in the proposed budget:   
       
          Two firefighter positions were eliminated and two housing inspector positions were reinstated. This was 
            done in 2005, and is reflected in the 2006 Budget.   
          Reinstate the part-time Customer Service Representative position in Leisure Services.  This was done in 
            2005 to provide the necessary clerical support for the department, and is now reflected in the 2006 Budget. 
          Reinstate the Parks Intern to provide improved supervision for seasonal work. This position will be filled on 
            a contractual basis. 
          In accordance with Commission goals, the number one priority for 2006 is continuation of the fight against 
            neighborhood blight. Several departments will continue to work collectively to eliminate blighting 
            influences. We will improve enforcement on illegal dumping with a surveillance component and consider 
            banning vending vehicles that use music. The City's successful anti-graffiti efforts will also be continued. 
          The Fire Department anticipates receiving a federal fire grant and will use it to purchase a hose tester, turn-
            out gear and ice rescue suits. 
          The Police Department will continue the Neighborhood Response Team program that was implemented 
            earlier this year.  The department will also purchase field force gear and video equipment using criminal 
            forfeiture funds. 
          The Parks Department will resurface one set (10) of shuffle board courts at McGraft Park this year and the 
            other set in 2006. 
          Reduced funding for the Veterans Memorial Day Costs in 2005 and 2006 as the city is no longer required to 
            pay for such costs in private cemeteries. 
          The parking budget contemplates ceasing maintenance of the former Muskegon mall parking lots in late 
            2005 as that property begins it redevelopment. 
          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 years, a small amount of major general fund capital expenditures ($84,585) are 
            budgeted for 2006.  Funds are budgeted for the Geographic Information System (GIS), sanitation cart 
            replacement and improvements to City Hall.     
          General Fund transfers to the Major and Local Street Funds are budgeted at $480,000.   
        

                                                               Page 8



                                                                                  
         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: 
          
             Consider introducing a contractual or commission-based public relations position funded through 
              advertising sales and sponsorships.  This position would be responsible for coordination and 
              implementation of communication between residents, businesses, media and city departments. Also, the 
              position would assume responsibility for identifying and promoting city advertising opportunities.   
          
             Sponsorships may be pursued for services/programs, such as McGraft Park Concerts, Life Guards at PM 
              Park, Dog Beach mitts, Park Rangers, etc. 
          
             Staff will be working on the redevelopment of the Terrace Street Lots for a new fire station, potentially the 
              relocation of the Farmer's Market and additional commercial development.  We will also consider selling 
              other properties including the former Shaw Walker parking lot. 
     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 2006 budget.  A summary of budget highlights for these funds follows: 
          
             Major and Local Street Funds  ­ These budgets contemplate continuation of current service levels.  The 
              2006 budget provides for $3.64 million of major street capital improvements. Local street capital 
              improvements are budgeted at $460,000. As noted, the General Fund transfer to the street funds is 
              $480,000, with an additional $150,000 of METRO Act funds allocated to the local street fund. 
             L.C. Walker Arena ­  The City will continue utilizing uncommitted TIFA funds to reduce the general fund 
              subsidy in 2006. The City will also consider constructing a restaurant within the arena if we can be assured 
              that it will reduce the City's subsidy of the arena. Without the restaurant, the general fund subsidy for arena 
              operations is projected to remain at $260,000.  
       Sidewalk Improvement Fund ­  The ten-year sidewalk replacement program was completed in 2005.  This 
              fund will now be used to 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. Also, funding is included for a new 
              Central Fire Station ($2.8million). 
    

                                                                  Page 9



                                                                                

          State Grants Fund ­  We anticipate grants for the Neighborhood of Choice and Site Assessment programs.  
            Neither of these grants will require a City match. Grants for completion of the Lakeshore Trail are also 
            budgeted. A local match of $500,000 will be required for this project and will be raised through issuance of 
            bonds. 
       Marina & Launch Ramp Fund ­  No significant changes in funding or operations are budgeted.  A bond 
            issue is anticipated to match state grant funds for necessary capital improvements.  Staff intends to re-
            consider contracting for management of the facility to reduce its economic risk. Also, efforts to increase 
            enforcement of launch ramp permits will continue. 
       
          Equipment Fund ­  No significant operational changes are planned. Scheduled vehicle and equipment 
            purchases totaling $965,000 are planned for 2006. 
          Public Service Building ­  No significant operational changes are planned. Ongoing physical 
            improvements at the facility are scheduled at $50,000. 
       Water Fund ­  Major improvements to the filtration plant are ongoing and will be completed in 2005. 
            Other capital improvements, many of which are tied to street projects, are proposed and total $1.385 
            million. 
       Sewer Fund -  No significant changes are planned for sewer fund operations. The County is increasing its 
            wastewater treatment rates by 33%, (primarily due to capital improvements and Sappi flow reduction). It is 
            anticipated that the City will need to increase rates to customers by 16% in 2006.  Capital improvements, 
            many of which are tied to street projects, will total $1.125 million. 
 
       New Debt Issuance  
       The budget proposes possible issuance of one new bond issue: 
       
          Capital Improvement Bonds ­  The City will have to bond to provide matching funds for a state grant for 
            improvements to the marina. Also, the City will bond to match two large grants to complete the Lakeshore 
            Trail. The bond may also include funding for the restaurant for the arena. Bond details will change as 
            project plans are finalized, but presently a $4.9 million bond issue is anticipated: 
                        
                       Central Fire Station          $2,800,000 
       
             Hartshorn 
                                 Marina 
                                               
                                                      
                                                      1,000,000 
                       Lakeshore Trail                    500,000 
                       Arena Improvements                 450,000 
                       Fisherman's Landing                150,000 
       
                 $4,900,000 
        

                                                                 Page 10



                                                                               
        Future Outlook  
        The proposed 2006 budget provides a sound-financing plan for the city.  However, as noted, it is largely a 
       status quo budget and maintains service levels that have previously been reduced significantly.  It should also 
       be noted that there are several unknown factors that could affect this spending plan. 
        
           Healthcare and Other Benefit Costs  ­ Increased healthcare costs continue to be a major problem for the 
            City.  Based on estimates from Priority Health, the 2006 budget incorporates an estimated 7% annualized 
            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 for both general and police and fire employees.  Fundamental restructuring of those 
            benefit programs remain a priority for the city in employee contract negotiations.  
           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 is very tenuous, further cuts in Revenue Sharing are a very 
            real possibility. 
        
           Continued Operating Deficits  ­ The 2006 budget is balanced using funds ($306,608) 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. 
       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 resilient in recent years, despite generally 
            poor local economic news.  Realistically, however, the cumulative impact of plant downsizings at 
            Brunswick, Dana, and Sappi must be a considered as a potentially serious budget problem.  We have 
            budgeted revenues conservatively and will continue to closely monitor collections. Budgetary adjustments 
            will be made as needed. 
       Employee Contracts  ­ The contract with the 517M union expired at the end of 2004 and is going to fact-
            finding. The contract with the clerical union will expire at the end of 2005. The outcome of these 
            negotiations will have a significant impact on the city's budgetary situation in 2006 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. Continued erosion of 
            this funding source will have serious implications for the general fund service levels. 
  

                                                              Page 11



                                                                          
      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 
     Commission policies dictate.  The 2005 third quarter reforecast and update is incorporated into this budget 
     document. 
       Budget Process and Detail  
      The proposed 2006 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 eight 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. 
 

                                                              Page 12



                                                                                    
                 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. 
                  
 
                 The above is intended to provide you with highlights of the proposed 2006 Budget and prepare you for a 
                 detailed review of the same.  This review is scheduled for the September work session on September 12, 
                 2005.  A public hearing on the budget is scheduled for the regular City Commission meeting to be held on 
                 September 13, 2005.  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, 2005. 
                  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 13



                                            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 14



                    SUMMARY CHARTS AND GRAPHS                          
                                         Page 15



    City of Muskegon
    2006 Proposed Budget
    Summary of Budgeted Funds

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


1 General                                                      $              2,675,687
                                                                                                         $            23,620,716
                                                                                                                                                        $            23,927,324
                                                                                                                                                                                             $              2,369,079
                                                                                                                                                                                                                                      $                (306,608)
                                                                                                                                                                                                                                                          


2 Major Streets                                                                1,353,521
                                                                                                                         6,021,948
                                                                                                                                                                        6,844,748
                                                                                                                                                                                                                530,721
                                                                                                                                                                                                                                                        (822,800)
                                                                                                                                                                                                                                                          


3 Local Streets                                                                   229,817
                                                                                                                         1,732,942
                                                                                                                                                                        1,644,649
                                                                                                                                                                                                                318,110
                                                                                                                                                                                                                                                           88,293
                                                                                                                                                                                                                                                                         


4 L.C. Walker Arena                                                                 11,512
                                                                                                                         1,556,476
                                                                                                                                                                        1,515,066
                                                                                                                                                                                                                  52,922
                                                                                                                                                                                                                                                           41,410
                                                                                                                                                                                                                                                                         


5 Criminal Forfeitures Fund                                                       142,049
                                                                                                                              10,000
                                                                                                                                                                             63,000
                                                                                                                                                                                                                  89,049
                                                                                                                                                                                                                                                         (53,000)
                                                                                                                                                                                                                                                                    


6 Budget Stabilization Fund                                                    1,250,000
                                                                                                                                       -                                -                  1,250,000
                                                                                                                                                                                                                                                                    - 


7 Land Reutilization Fund                                                           23,875
                                                                                                                                1,000
                                                                                                                                                                               1,000
                                                                                                                                                                                                                  23,875
                                                                                                                                                                                                                                                                    - 


8 Tree Replacement Fund                                                             13,447
                                                                                                                                3,200
                                                                                                                                                                               3,000
                                                                                                                                                                                                                  13,647
                                                                                                                                                                                                                                                                200
                                                                                                                                                                                                                                                                                             


9 Tax Increment Finance Authority Debt Fund                                           3,147
                                                                                                                              59,044
                                                                                                                                                                             60,000
                                                                                                                                                                                                                    2,191
                                                                                                                                                                                                                                                              (956)
                                                                                                                                                                                                                                                                                        


10 Downtown Development Authority Debt Fund                                       422,203
                                                                                                                            559,095
                                                                                                                                                                           564,095
                                                                                                                                                                                                                417,203
                                                                                                                                                                                                                                                           (5,000)
                                                                                                                                                                                                                                                                              


11 Local Development Finance Authority I Fund                                            311
                                                                                                                                     10
                                                                                                                                                                                      -                            321
                                                                                                                                                                                                                                                                  10
                                                                                                                                                                                                                                                                                                  


12 Local Development Finance Authority II Fund                                      22,145
                                                                                                                                   350
                                                                                                                                                                                      -                       22,495
                                                                                                                                                                                                                                                                350
                                                                                                                                                                                                                                                                                             


13 Local Development Finance Authority III Fund (Smartzone)                       277,933
                                                                                                                              21,908
                                                                                                                                                                           205,847
                                                                                                                                                                                                                  93,994
                                                                                                                                                                                                                                                        (183,939)
                                                                                                                                                                                                                                                          


14 Sidewalk Improvement                                                           841,303
                                                                                                                            360,000
                                                                                                                                                                           433,175
                                                                                                                                                                                                                768,128
                                                                                                                                                                                                                                                         (73,175)
                                                                                                                                                                                                                                                                    


15 Public Improvement                                                             594,745
                                                                                                                         3,370,000
                                                                                                                                                                        3,047,035
                                                                                                                                                                                                                917,710
                                                                                                                                                                                                                                                         322,965
                                                                                                                                                                                                                                                               


16 State Grants                                                                       1,607
                                                                                                                         3,770,000
                                                                                                                                                                        3,770,000
                                                                                                                                                                                                                    1,607
                                                                                                                                                                                                                                                                    - 


17 Marina & Launch Ramp                                                             31,795
                                                                                                                         1,825,000
                                                                                                                                                                        1,749,718
                                                                                                                                                                                                                107,077
                                                                                                                                                                                                                                                           75,282
                                                                                                                                                                                                                                                                         


18 Public Service Building                                                          73,842
                                                                                                                            582,270
                                                                                                                                                                           578,378
                                                                                                                                                                                                                  77,734
                                                                                                                                                                                                                                                             3,892
                                                                                                                                                                                                                                                                                   


19 Engineering Services                                                             74,866
                                                                                                                            591,500
                                                                                                                                                                           613,804
                                                                                                                                                                                                                  52,562
                                                                                                                                                                                                                                                         (22,304)
                                                                                                                                                                                                                                                                    


20 Equipment                                                                   1,648,342
                                                                                                                         2,415,000
                                                                                                                                                                        2,596,570
                                                                                                                                                                                                             1,466,772
                                                                                                                                                                                                                                                        (181,570)
                                                                                                                                                                                                                                                          


21 General Insurance                                                              760,046
                                                                                                                         4,103,990
                                                                                                                                                                        4,012,994
                                                                                                                                                                                                                851,042
                                                                                                                                                                                                                                                           90,996
                                                                                                                                                                                                                                                                         


22 Sewer                                                                       1,764,245
                                                                                                                         5,447,271
                                                                                                                                                                        5,655,997
                                                                                                                                                                                                             1,555,519
                                                                                                                                                                                                                                                        (208,726)
                                                                                                                                                                                                                                                          


23 Water                                                                       2,979,201
                                                                                                                         6,620,762
                                                                                                                                                                        6,427,684
                                                                                                                                                                                                             3,172,279
                                                                                                                                                                                                                                                         193,078
                                                                                                                                                                                                                                                               





      Total All Budgeted Funds                                 $            15,195,639
                                                                                                         $            62,672,482
                                                                                                                                                        $            63,714,084
                                                                                                                                                                                             $            14,154,037
                                                                                                                                                                                                                                      $             (1,041,602)
                                                                                                                                                                                                                                                     





                                                                                               Page 16



                                                                             CRIMINAL FORFEITURES 0.1%    TREE REPLACEMENT 0.0%    TIFA 0.1%                       LOCAL STREETS 2.6%                      PUBLIC SERVICE BUILDING 0.9%                     DDA 0.9%          LDFA III (Smartzone) 0.3%    SIDEWALK 0.7%
                                                                                                                                                                                                                                                                                                                                                   LC WALKER ARENA 2.4%    ENGINEERING SERVICES 1.0%    MARINA & LAUNCH RAMP 2.7%



















                                                                                                                                                                                                                                                                                                                                  Other 11.7%
                                                                                                                                                                                                                                                   PUBLIC IMPROVEMENT 4.8%
                                                                                                                                                                                                                        LAND REUTILIZATION 0.0%
                                                                                                                                                                                         EQUIPMENT 4.1%


CITY OF MUSKEGON                                                                                                                                      INSURANCE 6.3%





                                                                                                                                       STATE GRANTS 5.9%                                                                                                                                                                                                                                                                             GENERAL FUND 37.6%




                                                                                                                                                   SEWER 8.9%



                     TOTAL 2006 BUDGETED FUND EXPENDITURES - $63,714,084                                                                                                                                                                      WATER 10.1%                                                                   MAJOR STREETS 10.7%










                                                                                                                                                                                                                                                                                             Page 17



      2006 GENERAL FUND REVENUES
                              $23,620,716

         All Othe r
           Sources
               19%




  State Share d
   Revenue
      20%                                              Taxes
                                                        61%







      2006 GENERAL FUND EXPENSES
                            $23,927,324

                                        Off-Budge t
                                           Items
  Business                                  8%
 Value Adde d
 Activities
    17%





                                                         Customer
                                                        Value Adde d
                                                        Activities
                                                           75%



      2006 GENERAL FUND EXPENSES
                              $23,927,324
                               Supplies
                Other Uses       2%         Other
                                       Expenses
                      4%                    0%
 Contractual
 Services
    29%




                                                         & Salaries
        Capital                                          Benefits
               1%                                          64%







                                 Page 18



                    GENERAL FUND REVENUES AND 
                    EXPENDITURES - LAST 10 YEARS

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

        $-          $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

              $-
                    1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

                            FUND BALANCE                   TARGET FUND BALANCE





                                               Page 19



 












































     Page 20



                      BUDGET NARRATIVES BY DIVISION 
                
                                   
 











                              Page 21



 
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 promote 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 City Commission also encouraged the 
     improve race relations through action and                           clean-up of Ruddiman Creek which begins 
     policy. The City Manager's Office will work                         this summer.  The Public Relations 
     on this goal with various community groups                          Committee works to create awareness of 
     and by encouraging employees to                                     the positive qualities of our city to inspire 
     participate in the Institute for Healing                            community pride, confidence and support.  
     Racism.  The City Commission, through the                           Each summer the City Commission 
     Community Relations Committee, provides                             sponsors the Beautification Awards to three 
     opportunities for positions on various boards                       City of Muskegon homeowners for 
     and committees to a diverse mix of citizens.                        aesthetically attractive landscaping.  The 
     The City also co-sponsors the Martin Luther                         City has also improved waterfront public 
     King (MLK) Diversity Day Breakfast and                              access through the site plan process for 
     provides financial support to the Institute for                     new developments. 
     Healing Racism.                                                      
                                                                         Foster Strong Ties Among Governments 
     Foster Opportunities for City Youth.                                and Community Agencies.  
     The City Commission and City Manager's                              The City Commission and City Manager 
     Office support our youth through programs                           work with various local governments and 

      

                                                         Page 22



     community agencies on a number of 
     projects and programs.  Some of these                         CITY OF MUSKEGON, MICHIGAN 
     include, but are not limited to Muskegon                            
     Area First, The Municipal Wastewater                               improve community and race relations. The 
     Committee, Central Dispatch, MATS, MAP,                            office will pursue cooperative efforts and 
     MALMC, and Muskegon Neighborhood                                   potential functional consolidation with other 
     Associations. The City furthered this goal by                      local governments.  This office will also 
     providing water-billing service to Muskegon                        continue to work to improve the economic 
     Township.  The City is working in                                  climate in the City in order to create an 
     cooperation with the County on the                                 environment conducive to private 
     redevelopment of the former Muskegon mall                          investment.  Specific projects include, but 
     site through the potential sale and re-use of                      are not limited to the following: Smartzone 
     the City parking ramp and by cooperating                           Development, Promotion of Seaway 
     on grant opportunities.  The City is also                          Industrial Park, Redevelopment of former 
     involved in One Muskegon which is a multi-                         Muskegon Mall property, Renaissance Zone 
     jurisdictional effort to pursue cooperative                        Implementation, and Farmers Market 
     ventures among area municipalities.                                Relocation. 
                                                                    
     Maintain and Enhance the                                           Contributions to Outside Organizations: The 
     Neighborhoods of the City.                                         Contributions budget provides the 
     The City Commission appropriates funds                             mechanism for the City to fund several 
     and sets policy to address blighting                               agencies that assist the City in achieving its 
     influences in the City.  The City Manager is                       goals and providing certain services.  
     coordinating a multi-department effort to                          Funding for the 211 service has been added 
     improve implementation and operational                             for 2006.  The 211 service  provides 
     issues to address blight.  The City                                community service information to citizens. 
     Commission also works with Neighborhoods                           The Muskegon Main Street Program 
     Associations on their events and promotion                         funding has been moved from Planning and 
     of our City.                                                       Economic Development to this budget this 
                                                                        year.  The following agencies are being 
2006 Budget Highlights                                                  funded in 2006: 
                                                                    
     City Commission: The City Commission will                          1)  Neighborhood Associations of 
     continue to improve community relations by                              Muskegon 
     utilizing the City's Public Relations                              2)  Muskegon Area Transit System 
     Committee.  The Commission will also                               3)  Muskegon Area First 
     continue to work towards improving race                            4)  Institute for Healing Racism 
     relations within the City through financial                        5)  Veterans Memorial Day  
     contribution to the Institute for Healing                          6)  MLK Diversity Day Program 
     Racism.                                                            7)  Muskegon County Animal Control 
                                                                        8)  Muskegon Area Labor/Management 
                                                                             Committee 
     City Attorney's Office: The City Attorney will                     9)  Muskegon Main Street Program 
     continue to provide routine and special legal                      10) Community Access Line of the 
     services to the City.  The City Attorney will                           Lakeshore (CALL) - 211 Service 
     also prepare the necessary legal documents                     
     (development agreements, etc.) relative to                     
     special projects. Outside legal counsel will                   
     continue to work on the cable TV lawsuit,                      
     the Nugent Sand matter and the Edison                          
     Landing Smartzone.                                             
                                                                    
     City Manager's Office: The City Manager's 
     Office will continue ongoing efforts to  
      

                                                        Page 23



CITY OF MUSKEGON, MICHIGAN 

                             ADMINISTRATIVE SERVICES DIVISON 

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

      

                                                        Page 24



     the City's fight against blight through 
     aggressively investigating environmental                     CITY OF MUSKEGON, MICHIGAN 
     and sidewalk appeals.  It reevaluates                              
     approaches to service delivery aimed at 
     curtailing conflict between the general                           various committees with the Chamber to 
     citizenry and staff attempting to implement                       enhance and provide better public 
     policies set by the City Commission.                              communication.  We will publish The 
                                                                       Channel newsletter and provide access to it 
                                                                       through the web.  Direct mail will remain 
2006 Budget Highlights                                                 discontinued.   We will continue to update 
                                                                       and add to our City Clerk web page to 
                                                                       provide more information and ways to do 
          Administration Department: no staffing                       business through the city web page.  This 
          changes.  Although such                                      budget reflects costs of four elections.  
          programs/initiatives as Employee                             (Schools will be billed for their elections.) 
          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 three                      limited department staffing and material 
          of our five labor groups: Command and                        resources in order to advance output will 
          Patrol Units probably, the Clerical Unit                     continue. Improvements in relaying 
          whose bargaining session will begin in                       information through the City's intranet and 
          September of 2005. We will also                              internet sites, as well as publication of the 
          continue oversight and coordination of                       Employees Newsletter will continue. 
          the organization's administrative needs.                Future Outlook  
          Affirmative Action Department:  No                       
          staffing changes.  We will continue                     Following are the major goals of the 
          responsibility for the Worker's                         Administration Division incorporated in the 
          Compensation program, community                         proposed budget: 
          outreach, administration of the Julia                        Administrative Services: 
          Hackley Internship program, contract                              Negotiate two to three union contracts 
          compliance and equal employment                                   and manage grievances filed. 
          opportunity responsibilities. Both the 
          hardship contingency fund and National                            Continue to work towards improving 
          recruitment efforts remain discontinued.                          Labor / Management relations. 
          However, instate recruitment at College-                          Continue on-going efforts to improve 
          University Career Days, continues. The                            race relations. 
          2006 Budget also provides for                                     Foster the accomplishment of the City 
          implementation of the Equal                                       Commission Vision, Value and Mission 
          Employment Opportunity Committee's                                within the organization and the 
          goal to improve opportunities for                                 community. 
          minority representation among city                       
          seasonal Lifeguard Positions.                                Affirmative Action: 
                                                                            Work more closely with the Civil Service 
          City Clerk's Office: No staffing changes.                         and Finance departments to implement 
          We will continue to work with the                                 the Workers Compensation Program. 
          Commission on their Community                                      Meet Equal Employment Opportunity 
          Relations and Public Relations                                    and Affirmative Action efforts. 
          Committee projects as well as work on                             Continue to pursue contract compliance. 
      

                                                       Page 25



     City Clerk's Office: 
                                Continue with current programs.                         CITY OF MUSKEGON, MICHIGAN 
                                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. 
                                Conclude personnel file reorganization.                  
                                Revise Commercial Drivers License 
                                (CDL) Drug Testing and Leave policies.                   
                                Continue development of Civil Service 
                                web pages.                                               
                                Revamp employee handbook.                                
                                                                                         
                                                                                         
                                                                                         
                                                                                         
                       
                            

                                                                             Page 26



CITY OF MUSKEGON, MICHIGAN 

                                   FINANCIAL SERVICES DIVISON 

DIVISION SUMMARY                                                            information critical to prudent and effective 
                                                                            stewardship. Sound finances are important 
Financial Services                                                          in shaping the perception that citizens, 
                                                                            investors, bond rating agencies and others 
Division Description                                                        have of the City of Muskegon.  Staff of the 
The Financial Services Division is made up of                               Financial Services Division take pride in 
the following departments: Finance                                          providing excellent financial leadership for 
Administration, City Treasurer's Office, Income                             the City in accordance with the highest 
Tax Administration and Information Systems.                                 professional standards.  
The division is responsible for all financial                           
management activities of the City; specifically,                            Foster Opportunities for City Youth. 
property tax collections, utility billing and                               The Division participates in the City's Julia 
collections, payroll and employee benefits,                                 Hackley and Grand Valley State University's 
accounts payable and accounts receivable,                                   Internships programs.  Staff spends quality 
income tax collections and management of the                                time to provide personal and professional 
City's computer network and related information                             development to interns which ensures their 
systems.  Additionally, the division oversees the                           competitive advantage when entering the 
following contractual relationships:                                        job market.  Additionally several staff 
                                                                            members volunteer in the schools through 
          Muskegon County Equalization                                      Junior Achievement.  
          Department which performs all property                        
          tax assessment services for the City.                             Promote Economic Stability, Diverse 
          L. C. Walker Arena and the associated                             Economic Growth and Redevelopment. 
          contracts with the Arena Management                               The Finance Division plays a key role in 
          Group LLC, Arena Concessions Group,                               analyzing the financial impact, budgeting 
          Muskegon Fury and Lakeshore                                       and identifying funding sources for City 
          Basketball 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, 
     investments, and sound financial                                       water billing services provided under 
     management practices.  Also, they provide                              contract to Muskegon Township and the 
     the City Commission and department                                     intergovernmental agreement with 
     managers with timely and accurate financial                            Muskegon County for assessment services.  

      

                                                            Page 27



      Additionally, staff is involved with the One                        CITY OF MUSKEGON, MICHIGAN 
      Muskegon intergovernmental cooperation                          
      initiative.                                                          department is committed to working on 
                                                                           opportunities that will improve productivity 
     Develop and Maintain City Infrastructure                              and operational efficiency through the use 
      and Facilities.                                                      of technology. 
      The Finance Division strives to be on the                       
      cutting edge of new technology.                                     Income Tax Administration: Staffing levels 
      Improvements and updates to the security                             will remain constant.  The budget  
      of the City's information network protect the                        provides for continued collection and tax 
      integrity of our information and continual                           enforcement activities.  
      enhancements to the City' web site and                                
      Intranet site provide access to more                                LC Walker Arena:  The budget provides for 
      information and services to City of                                  continued subsidy of the arena from the 
      Muskegon employees and citizens.                                     General Fund and the TIFA Fund in 2006. 
      Recently the City of Muskegon's web site                             The Muskegon Mayhem have committed to 
      was rated 5th out of 534 city and villages in                        the 2005/2006 season at the arena.  The 
      the State of Michigan by Cyber-state.org.                            various contracts for operation of the arena 
                                                                           will expire in 2006 and renegotiation or 
     Maintain and Enhance the                                              replacement of these contracts will be a 
      Neighborhoods of the City.                                           priority for the year.  Also under study is an 
      The Division's Reengineering Committee is                            addition to the arena above the Howell's 
      continually reevaluating techniques for                              Hockey Shop area to provide a food 
      improving our collection efforts especially on                       service/bar/meeting room.  The project will 
      environmental invoices.  The Committee                               be pursued only if the feasibility analysis 
      has also been instrumental in updating and                           indicates it will be self-supporting and help 
      centralizing data bases used by City                                 reduce the operating deficit. 
      departments for everything from City                            
      mailings to billing information.  These efforts                     Information Technology: As proposed in 
      will reduce blight in our neighborhoods and                          2005, a computer technician position has 
      increase the flow of information to residents.                       been eliminated from the Information 
                                                                           Technology Department.  The department is 
2006 Budget Highlights                                                     focusing efforts on maintaining the same 
                                                                           level of service for network and data 
     Finance Administration: No staffing changes                           operations. Services such as 24x7 support, 
      are proposed.  The budget provides for                               telephone call center support and other non 
      continuation of current services.                                    critical operations have been eliminated and 
                                                                           replaced with electronic solutions. 
     Assessing Services: The 2006 budget                              
      contemplates continuation of the contract                      Future Outlook 
      with the Muskegon County Equalization                           
      Department for all assessment services.                        Following are some of the major goals of the 
      The cost of this contract is tied to the actual                Finance Division that are incorporated in the 
      year-to-year increase in the City's total                      2006 proposed budget: 
      taxable property valuation.  For 2006, this                     
      cost increase is a little over one percent                          Finance Administration 
      (1.09%).                                                                  Constant monitoring of the City's budget 
                                                                                so management has the most up-to-
     City Treasurer: No staffing changes are                                    date accurate information to respond to 
      proposed. The 2006 budget contemplates                                    changes as quickly as possible. 
      continuation of in-house and outsourced                                   Coordination of new Medicare part "D" 
      billing services and collection services. The                             retiree prescription drug subsidy. 
 

       

                                                          Page 28



          Implementation of Defined Contribution 
          pension plan for new hires.                           CITY OF MUSKEGON, MICHIGAN 
          Increase ACH vendor payments using                                
          GEMS software enhancement.                                            Negotiation of new contracts for Arena 
          Continue working with One Muskegon in                                 Management and Concessions. 
          the areas of purchasing and shared                                    Devise other income-producing 
          financial services                                                    strategies 
                                                                            
     Assessing Services                                                   Information Technology 
          Update the mapping of the entire city                                 Continue adding features to the City's 
          and convert the drawing into a new geo-                               web portal (website) that will empower 
          database.                                                             and enable customers to perform 
          Activate and integrate an elevation                                   functions online, such as paying bills, 
          model and digital orthophotography as                                 record retrieval and more.  By making 
          GIS layers.                                                           information available and moving 
                                                                                additional functions to our web portal, 
     City Treasurer                                                             Information Technology can help reduce 
          Continue with a more aggressive use of                                the burden of staff reductions and 
          our outside collection agency for                                     limited time for other departments. 
          delinquent accounts and initial billing for                           Continue to help departments recognize 
          environmental invoices.                                               cost savings through the use of 
          Increase marketing of the city's e-                                   technology and business process 
          government (on-line) and automatic                                    review. 
          water/sewer utility bill payment options.                            Migrate remaining databases to a 
          Continue to seek opportunities to make                                standard Database Management 
          more city services available through the                              System for future data mining, research 
          internet, providing alternate options to                              and support. 
          help decrease lines at the counter and                               Create a portal for "registered" 
          delays on the phone.                                                  businesses that will allow a web 
                                                                                presence through the use of links and/ 
     Income Tax Administration                                                  or advertisements. When a business 
          Implement capability of withdrawing                                   registers with the Clerk's office, they will 
          funds electronically from taxpayers bank                              have the option to have a small ad or 
          accounts.                                                             link placed on our website for an 
          Continue to overhaul the withholding                                  additional fee. 
          compliance program.  Aggressively                                      
          pursue businesses not compliant our                                    
          department.                                                 
          Continue to increase the number of                          
          businesses that electronically submit                       
          their W-2's and W-3 information to our                      
          department.                                                 
          Increase the number of direct deposit                       
          refunds.                                                    
                                                                      
     L C Walker Arena                                                  
           Continued collaboration with Arena 
         Management to increase the number of                         
          events and overall attendance at the                        
          Arena.                                                      
          Explore possible retail opportunities                       
          at the Arena.                                                
      

                                                          Page 29



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 take 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 

      

                                                         Page 30



     neighborhoods. The department will                           CITY OF MUSKEGON, MICHIGAN 
     continue to address the perception of crime 
     within our city.                                              
                                                                       Maintain strong ties with our neighborhood 
2006 Budget Highlights                                                 schools. 
                                                                   
     The DARE program will continue. Private                           Schedule the neighborhood officers to 
     DARE funding will allow for training and                          better meet the needs of the community. 
     materials.  One Community Police Officer                      
     will provide for the entire DARE training.                        Focus on quality of life issues (blight) and 
                                                                       the perception of crime in the 
     Our Citizen's Police Academy has been                             neighborhoods. 
     very successful.  Therefore, we will continue                 
     the academy during this fiscal period.                        
                                                                  Investigations Bureau : 
     State training funds (Public Act 302) should                  
     remain constant and will be available to us.                      Continue to pursue technology that will aid 
     We have pooled a portion of these funds                           in the development of effective investigation 
     with 60 other police agencies in west                             strategies. 
     Michigan and formed a training consortium.                         
     This allows for very low cost training.                           Continue to improve our caseload 
                                                                       management.  Ensure that detectives are 
     Due to the passage of a millage increase for                      being assigned to cases in an effective and 
     Muskegon Central Dispatch, municipal                              efficient manner. 
     assessment costs will be frozen during                        
     2006.                                                             Provide a coordinated response to narcotics 
                                                                       violations throughout the city with an 
     Managers have been directed to provide                            emphasis on street-level and neighborhood 
     strict control and oversight of our overtime                      enforcement. 
     and operational costs.                                        
                                                                       Partner with neighborhood and patrol 
     Pursue functional consolidation with other                        officers in developing strategies to resolve 
     law enforcement agencies.                                         crime issues. 
                                                                   
Patrol Bureau:                                                         Maintain positive, working relationships with 
                                                                       the media. 
     Assign a Community Police Officer to                          
     Muskegon High School on a full-time basis.                        When necessary, utilize regional task forces 
                                                                       to investigate violent crimes. 
     Continue the Neighborhood Response                            
     Team.                                                         
                                                                  Administration: 
     In conjunction with Public Works, continue                    
     to monitor the quality of our vehicle fleet.                      Maintain an "open door" policy for our 
     Review vehicle assignments to maximize                            community.  Focus on outreach to our 
     the use of our fleet.                                             minority communities. 
                                                                        
     Provide consistent traffic enforcement in                         Serve as a leader and mentor in the 
     those areas of the city, including                                development of the department's 
     neighborhoods, with identified needs.                             management team. 
CITY OF MUSKEGON, MICHIGAN                                         
                                                                       Develop a Vision/Mission/Value statement 
                                                                       for the department. 
      

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     Ensure that our complaint process is open,                     CITY OF MUSKEGON, MICHIGAN 
     fair and accessible to our community.                                 
                                                                          positive relationships with youth within our 
     Foster positive labor-management relations.                          city. 
                                                                          
     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.                                             The development of ice and water rescue 
                                                                         capabilities in conjunction with our water-
                                                                         borne firefighting function provides a safety 
FIRE DEPARTMENT                                                          net for those utilizing the waterways within 
                                                                         our city. 
Department Description                                                    
The Muskegon Fire Department provides the                                Foster Strong Ties Among Government 
following services: fire suppression, emergency                          and Community Agencies  
medical service, fire prevention, specialized                            The department currently uses mutual aid 
rescue, building and trade inspections and code                          with neighboring jurisdictions to deliver life 
enforcement.  The department provides the                                safety services to citizens in the most rapid 
aforementioned services as well as fire                                  and efficient manner possible.  Staff will 
prevention and fire safety education for our                             also explore the possibility of regional 
community.                                                               training and the development of regional 
                                                                         specialty teams.  An advisory committee 
Departmental Relationship to City                                        has been formed to provide feedback to the 
Commission Goals:                                                        building and trade inspectors as to customer 
                                                                         service issues and inspection procedures. 
     Take Leadership Responsibility for                                   
     Improving Race Relations                                            Develop and Maintain Infrastructure and 
     The department will continue its efforts to                         Facilities  
     recruit and retain members of the minority                          Continue to review the current status of our 
     community and women.  Department                                    facilities and apparatus as to needed repairs 
     personnel will participate in community                             and replacement.  
     forums and neighborhood meetings.  Staff is                     
     committed to building and maintaining trust,                        Maintain and Enhance the Residential 
     especially with members of our minority                             Neighborhoods of the City   
     communities.                                                        The department will continue to meet with 
                                                                         neighborhood associations in an effort to 
                                                                         become familiar with neighborhood-specific 
     Foster Opportunities for City Youth                                 issues.  Staff and apparatus are also 
     Our Firematch and Juvenile Firesetter                               present at neighborhood functions.  
     programs are designed to help troubled                              Inspections staff will continue to focus on 
     kids.  We will partner with schools and                             identifying dangerous structures and other 
     community groups in an effort to establish                          blight related issues. 

      

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      2006 Budget Highlights                                     CITY OF MUSKEGON, MICHIGAN 
                                                                  
     Develop an effective apparatus and building                  
     maintenance program to provide safe                          
     vehicles for staff and to reduce unnecessary                 
     repair costs.                                                
                                                                  
     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.                                          
                                                                  
     Begin construction of the new Central Fire                   
     Station (completion: 2007)                                   
                                                                  
     Receive and put into service two new                         
     engines.                                                     
                                                                  
     Continue with customer service training                      
     within the Inspections Office.                               
                                                                   
     Pursue functional consolidation with other                   
     fire service and inspection agencies.                        
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
 

      

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CITY OF MUSKEGON, MICHIGAN 

                                     PUBLIC WORKS DIVISON 

DIVISION SUMMARY                                                      exposure to the working world in our Parks 
                                                                      and Streets Department as well. 
Public Works Services                                                  
                                                                        Promote Economic Stability, Diverse 
Division Description                                                  Economic Growth and Redevelopment. 
The Public Works Services Division is                                 The Public Works Services Division works 
responsible for maintaining the City's                                directly with developers and architects 
infrastructure, the life-blood of the City.  Due to                   during design and construction to provide 
the realignment of the Leisure Services                               civil engineering and public works expertise.  
Division, Public Works has taken over the                             The division also works towards improving 
Cemetery, Forestry, Parking Operations as well                        and upgrading the City's infrastructure to 
as Parks Maintenance. This division consists of                       provide adequate facilities (water, sewer & 
four general departments: Public Works                                roadway system) to encourage and facilitate 
Department  (DPW) comprising of Streets,                              economic development. 
Street Lights, Traffic Signals, Signs and                              
Barricades, Cemeteries, Parks, Forestry,                                Sustain the Natural, Cultural and 
Parking Operations and Special Event Support;                         Recreational Resources of the 
Utilities Department  comprising of Water                             Community. 
Filtration Plant, Water/Sewer Maintenance,                            Public Works Services Division is a 
Storm Water Management and Sanitation and                             community representative in environmental 
Equipment;  Engineering Department                                    activities such as Ruddiman Creek Task 
comprising of Engineering Services and                                Force, Muskegon Lake Public Advisory 
Building Maintenance; and Administration                              Committee and the Muskegon River 
Department  comprising of Administrative                              Watershed Assembly.  Public Works plays a 
Support, Public Service Building and Senior                           significant role with the Muskegon County 
Transit.                                                              Wastewater Advisory Committee. 
                                                                       
Divisional Relationship to City                                         Foster Strong Ties Among Governments 
Commission Goals                                                      and Community Agencies.  
                                                                      Public Works Services Division represents 
                                                                      our community on the Countywide Phase 2 
     Take Leadership Responsibility for                               Storm Water Committee, Muskegon County 
     Improving Race Relations and Diversity.                          Wastewater Management Committee, Solid 
     The Public Works Services Division works                         Waste Planning Committee and West 
     to improve race relations through the                            Michigan Shoreline Regional Development 
     services that it provides. Our Sanitation                        Commission (WMSRDC) Technical 
     Coordinator works extensively with                               Committee. We also work with the 
     neighborhood groups to bridge cultural                           Muskegon Conservation District on 
     gaps.                                                            environmental projects.  
                                                                       
     Foster Opportunities for City Youth.                               Develop and Maintain City Infrastructure 
     The Engineering Department hires 2-3                             and Facilities. 
     college students as seasonal workers                             The Public Works Division is the primary 
     during the summer and gives them a broad                         caretaker of the City's infrastructure assets.  
     exposure to civil engineering functions.                         Most of the resources allocated to the 
     Many college-aged students are hired in the                      Division are used directly for maintenance 
     summer to give them experience and                               of streets, water and sewer facilities, parks, 

      

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     forestry, cemeteries and other physical                          City of Muskegon, Michigan 
     assets.                                                           
                                                                           Traffic Signals: Maintains all signalized 
     Maintain and Enhance the                                               intersections within the City of Muskegon 
     Neighborhoods of the City.                                             and many neighboring communities in 
     Through its sanitation program, Public                                 Muskegon County.  We will update signals 
     Works Services Division responds to illegal                            with new controllers as needed and replace 
     dumping and provides neighborhood                                      outdated incandescent signals/pedestrian 
     associations with Saturday dumpster                                    crossing signals with Light-emitting Diode 
     service. We also support many volunteer                                (LED) fixtures. 
     cleanup projects and volunteer housing                            
     rehab projects with disposal of wastes as                             Signs and Barricades: Provid