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City of Muskegon, Michigan
2008 Proposed Budget &
Quarterly Budget Reforecast
For The Year Beginning January 1, 2008
CITY OF MUSKEGON, MICHIGAN
PROPOSED BUDGET
FOR THE YEAR BEGINNING JANUARY 1, 2008
CITY COMMISSION
STEVE WARMINGTON - MAYOR
CLARA
SHEPHERD LAWRENCE
SPATARO
CHRIS
CARTER
STEVE
GAWRON
SUE
WIERENGO
KEVIN
DAVIS
BRYON MAZADE
CITY MANAGER
CITY
OF
MUSKEGON,
MICHIGAN
Budget for the Year Ended December 31, 2008
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
Community & Economic Development Division 38
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 59
Page 1
CITY OF MUSKEGON, MICHIGAN
Budget for the Year Ended December 31, 2008
TABLE OF CONTENTS - CONTINUED
II. NON-GENERAL FUND BUDGETS 61
Major Streets and State Trunklines Budget 62
Local Streets Budget 63
Budget Stabilization Fund 64
Farmers Market Improvement Budget 65
Criminal Forfeitures Budget 66
Tree Replacement Budget 67
Local Development Finance Authority I Budget 68
Local Development Finance Authority II Budget 69
Local Development Finance Authority III Budget 70
Tax Increment Finance Authority Budget 71
Downtown Development Authority Budget 72
Arena Improvement Budget 73
Sidewalk Improvement Budget 74
Public Improvement Budget 75
State Grants Fund Budget 76
Marina & Launch Ramp Budget 77
Equipment Budget 78
Page 2
CITY OF MUSKEGON, MICHIGAN
Budget for the Year Ended December 31, 2008
TABLE OF CONTENTS CONTINUED
II. NON-GENERAL FUND BUDGETS (continued)
Public Service Building Budget 70
Engineering Services Budget 80
General Insurance Fund Budget 81
Water Fund Budget 83
Sewer Budget 82
III. APPENDICES
Debt Service Requirements 87
2007 Budgeted Capital Improvements 89
2008 Budgeted Capital Improvements 95
Budgeted Personnel Complement 101
2008 Budget Resolution 109
Page 3
Page 4
INTRODUCTORY SECTION
Page 5
Page 6
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor
(231)724-6708
FAX (231)726-5181
Cemetery
(231)724-6783
FAX (231)726-5617
City Manager
(231)724-6724
FAX (231)722-1214
Civil Service
(231)724-6716
FAX (231)724-4405 August 30, 2007
Clerk
(231)724-6705
FAX (231)724-4178
Comm. & Neigh.
Services
(231)724-6717 Honorable Mayor and City Commissioners:
FAX (231)726-2501
Engineering Enclosed is the proposed 2008 Budget for the City of Muskegon. Our focus has been an
(231)724-6707
FAX (231)727-6904 attempt to maintain service levels, given the current economic conditions and rising
personnel and operational costs. Also, the 2008 spending plan was prepared considering
Finance
(231)724-6713 the type and scope of programs the City Commission identified as priorities during the
FAX (231)724-6768 January strategic planning process and the budget reforecast throughout 2007.
Fire Department
(231)724-6792
FAX (231)724-6985 The City's total proposed 2008 spending plan (including all budgeted funds) is
$57,329,143 as compared to $58,072,181 originally proposed for 2007. This is due mostly
Income Tax
(231)724-6770 to reduced operating budgets and the decrease in large capital projects. A limited amount
FAX (231)724-6768 of capital outlays for routine water, sewer and street improvements is included in the 2008
Info. Technology budget.
(231)724-4126
FAX (231)722-4301
It is important to note that the proposed spending plan does not include a property tax
Inspection Services
(231)724-6715 increase. However, the proposed budget retains the current millage rate as established
FAX (231)728-4371 when the 2005 Budget was adopted.
Leisure Services
(231)724-6704 The city's budget is made up of several individual funds that are reviewed below.
FAX (231)724-1196
Mayor's Office General Fund
(231)724-6701
FAX (231)722-1214
Planning/Zoning Proposed general fund expenditures are $24,779,437, up 1.36% from the 2007 revised
(231)724-6702 estimate of $24,448,114. Revenues for 2008 are estimated at $24,705,053, up (1.7%) from
FAX (231)724-6790
the 2007 revised estimate of $24,291,875. Revenues remain level and are not keeping
Police Department pace with rising costs largely due to the economy and increased personnel-related costs.
(231)724-6750
FAX (231)722-5140 State shared revenues for 2008 are projected to remain at relatively the same level.
Public Works However, firmer estimates of the city's 2008 state revenue will not be available until
(231)724-4100 sometime in September, after the state adopts its 2007-08 budget package. It is possible
FAX (231)722-4188
this will not occur until after the City Commission adopts the 2008 budget.
Treasurer
(231)724-6720
FAX (231)724-6768 The proposed general fund budget is based upon conservative estimates of revenue and
realistic projections of expenses and is structured to allow the city to maintain a fund
Water Billing
(231)724-6718 balance equal to 10% of prior year expenditures, in accordance with City Commission
FAX (231)724-6768
Water Filtration
(231)724-4106 Page 7
FAX (231)755-5290
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
policy. It should be noted that the proposed general fund budget includes a transfer of $300,000
from the Budget Stabilization Fund in order to meet that fund balance target and maintain city
services as much as possible.
For the last several years, total General Fund revenues have remained essentially flat. Total
budgeted revenues for 2008 are only 4.3% higher than actual revenues received in 2000, an
average of .4% per year. City expenses for wages, employee benefits, fuel, utilities, etc. have
obviously increased at a much steeper rate during that same time. We have struggled to maintain
city services as much as possible for several years in anticipation of relief from an economic
upturn. Staff has responded by improving efficiencies in operations, wherever possible and
cutting back non-essential staff and services. The 2008 budget is a continuation of these efforts.
The following are changes to the general fund budget proposed for 2008 that are worthy of note.
Because personnel costs represent such a large portion of the city's General Fund, it is
necessary to critically review the personnel complement each year. The following
adjustment to the personnel complement is included in the proposed budget:
Add a Customer Services Representative II position in the Treasurer's Office. This is
in anticipation of collecting summer taxes. The revenue from this venture will more
than offset the costs and position us to begin monthly utility billing in 2009.
Consider elimination or modification of the Assistant City Manager position.
In accordance with Commission goals, the continuation of the fight against neighborhood
blight remains a high priority for 2008. Several departments will continue to work
collectively to eliminate blighting influences. We will continue enforcement on illegal
dumping with surveillance of sites frequently used for dumping. We have been able to
cite violators using surveillance equipment. The City's successful anti-graffiti efforts will
also be continued.
The Planning Department will complete the master land use plan that is being started in
late 2007.
We will continue to research the most efficient ways to utilize fire department resources.
Consideration should be given to exploring the use of part-time/part-paid firefighters to
address department personnel needs. We will enter into negotiation with the firefighter's
union at the end of 2007.
Page 8
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
The Police Department will continue the use the successful Neighborhood Response
Team program to address crime in the City's central neighborhoods. The department will
also continue the operation of the Citizens Police Academy, which helps connect the
department with the community. New technology will enable the department to move a
professional standards detective to patrol, increasing the patrol complement. This change
will be accomplished yet this fall.
The Inspections Department will consider technology improvements to make the housing
inspection process more efficient. The department will also consider changes in the
housing registration program in an effort to make it more efficient and self-supporting.
We are exploring ways to partner with other agencies to provide recreation programming
in the most efficient manner. Recreation will also evaluate locations of the Summer
Adventure Program to determine how that money can be best spent. We will also seek
ways to promote greater use of our recreational facilities.
The Parks Department expects to add more seasonal worker hours to its budget to
maintain public spaces that were added from recent construction projects.
The Planning Department will complete the downtown and waterfront master land use
plan that will begin in late 2007. Planning and Public Works will also work together to
update the city's parks and recreation master plan.
The Julia Hackley Internship program is not included in this budget because of the
uncertainty of funding for it. However, we have applied for the grant from the
Community Foundation for Muskegon County to continue the program. If we receive the
grant, the departments that use the interns will be responsible for the city's match costs.
The General Fund will be required to transfer $150,000 (up from $100,000 in 2007) for
Smartzone debt service because that development is not yet generating enough tax
increments to pay all of the debt service for the MAREC building. A $75,000
contribution from the Community Foundation for Muskegon County is also budgeted for
this purpose.
The General Fund will continue to transfer $40,000 as an operating subsidy to the Marina
Fund. In 2008 we will examine ways to reduce these costs through a possible sale (it is a
charter park and has state grant restrictions) or contract management.
Some user fees will be increased and new fees will be recommended in December when
the city's master fee resolution is adopted.
Page 9
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
Only a small amount of major general fund capital expenditures are included in the
budget for 2008. Unfortunately, important capital improvements are being deferred to
later years.
The General Fund transfer to the Local Street Fund is budgeted at $480,000.
There are significant items not included in the proposed 2008 budget that will be studied in the
coming months to determine if they should be pursued. These include:
Critical review of the state restrictions on the operation of the marina needs to occur to
determine whether the city should continue in this business or explore ways to exit the
marina business.
Determine the best use of any remaining funds from the 2006 bond sale. Some possibilities
include recreation pathway extensions, improvements at Fisherman's Landing or a
campground for events such as Bike Time.
We will also continue efforts to sell city owned properties, including the old central fire
station, Seaway Industrial Park properties and other vacant land.
The City should consider proposing a package of "governmental efficiency" amendments to
the City Charter. These could include:
Change in the city's fiscal year to align with the federal, state, and county fiscal years;
Change from winter to summer tax collections. The state has required counties to levy
their taxes in the summer and there is strong possibility the schools will levy summer
taxes in the future. It would be inefficient for the city to be the only unit levying winter
taxes.
Elimination or modification of the city's civil service system;
Reduction in the number of days that the Board of Review holds session to better align
with the sessions of other local units;
Release of certain properties from the "Charter Park" restriction (e.g. Hartshorn Marina,
Richards Park).
Page 10
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
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 over one-half of the city's total 2008 budget. A summary of budget highlights
for these funds follows:
Major and Local Street Funds These budgets contemplate continuation of current service
levels. The 2008 budget provides for $2.621 million of major street capital improvements of
which $1,623,000 will be paid for with federal and state grants. Local street capital
improvements are budgeted at $1.410 million. As noted, the General Fund transfer to the
local street fund is $480,000. An additional $140,000 of METRO Act funds is allocated to
the local street fund. Two petitioned local streets (Vincent Drive and Harbour Towne Circle)
are included in the capital improvements schedule for 2008.
Sidewalk Improvement Fund The ten-year sidewalk replacement program was completed
in 2005. This fund is now used to collect assessments and pay debt service on bonds issued
to finance the completed sidewalk work.
Public Improvement Fund Funds are allocated for repayment of the Urban Land
Assembly (ULA) loan debt service payment and the fire truck installment purchase payments
on the trucks delivered in 2006. A $150,000 grant match is budgeted in the event the city
receives the grant for master plan improvements at Smith-Ryerson Park. Also, $65,000 is
budgeted for demolition/cleanup of the former city wastewater plant at Richards Park.
State Grants Fund We will continue the site assessment program using the Clean
Michigan Initiative (CMI) grant previously received from the State of Michigan. We will
also make improvements to Smith-Ryerson Playfield if a Michigan Department of Natural
Resources grant is received.
Marina & Launch Ramp Fund Staff intends to continue to look for options to make the
marina self-sustaining. Efforts to increase enforcement of launch ramp permits will also
continue.
Equipment Fund No significant operational changes are planned. Providing maintenance
services to additional municipalities will be considered. Scheduled vehicle and equipment
purchases totaling $817,750 are planned for 2008.
Public Service Building No significant operational changes or physical improvements are
planned.
Water Fund No water rate increase is planned. Major improvements to the filtration plant
were completed in 2006. Most of the capital improvements for 2008 are tied to street
projects. The water fund total for capital improvements is proposed at $1.710 million.
Sewer Fund - No significant changes are planned for the sewer fund operations and no
Page 11
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
sewer rate increase is planned. We have not yet seen the full affects of the sewer rate increase
that was implemented in 2007 to determine its adequacy. We will continue to analyze the
wastewater meter issue to determine the accuracy of the methodology in determining the
city's flow and how we might gain some relief. Sewer capital improvements, many of which
are tied to street projects, will total $820,000.
Arena Improvement Fund As required under the contract, revenue from a ticket
surcharge is place in a fund to provide funding for improvements to the facility. Plexiglas
will be replaced over 2007 and 2008 at a total cost of $36,000.
Farmers Market Improvement Fund $25,000 is budgeted to make improvements to the
Farmer's Market at its current location.
Future Outlook
The proposed 2008 budget provides a sound-financing plan for the city. However, as noted, it is
largely a status quo budget and does not address many City needs. 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 discussions with Priority Health, the 2008 budget
incorporates a moderate increase for active employee healthcare costs for the coming year.
Increasing healthcare costs for the more than 300 retired city employees and their
beneficiaries' compounds the problem. Pension costs have been moderated with the move to
the statewide MERS program but will continue to require careful annual review.
State Shared Revenue In recent years the City's annual share of these revenues has
decreased by well over $1 million. Because the State's budget situation remains tenuous,
further cuts in Revenue Sharing are a very real possibility.
Continued Operating Deficits The 2008 budget is balanced using funds ($74,384) from
the general fund balance. It is extremely important to realize that these funds will not be
available in future years and that more severe cutbacks will be needed to bring the budget
into balance if recurring revenues do not rebound soon. Also, as mentioned earlier, $300,000
is needed from the Budget Stabilization Fund to fund the proposed spending plan. This will
leave that fund with $1,050,000 at the end of 2008.
Stagnant Property Tax Revenues - The City's property tax base growth has not been strong
in recent years. Compounding the problem for future City budgets is the fact that most of the
City's economic development initiatives are in areas where any property tax growth has been
already allocated to spur the development (e.g. tax increment districts, Renaissance Zones,
etc.).
City Income Tax The city income tax has been surprisingly stable in recent years, despite
generally poor local economic news. However, in 2007 we have seen clear evidence of
declining income tax collections due to company closings and downsizings. We have
budgeted income tax revenues conservatively and will continue to closely monitor
Page 12
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
collections.
Employee Contracts Contracts with the police patrol and police command unions expired
at the end of 2006 and we are still in negotiations with both units. Contracts with fire and
SEIU Unit 2 (DPW) expire at the end of this year and bargaining will begin this fall. The
outcome of these negotiations will have a significant impact on the city's budgetary situation
for 2008 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.
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 2007 third quarter reforecast and update is
incorporated into this budget document.
Budget Process and Detail
The proposed 2008 City Budget is again prepared and presented in a manner intended to focus
attention on overall resource allocation priorities and policies rather than line item expenditure
detail. Staff believes that the "top-down" resource allocation budget process that has now been
used for nine consecutive budget cycles is a more efficient and effective method of making
resource allocation decisions than building budgets "up" from detailed line-item expenditure
estimates. Also, central to the City's budget process is the belief that responsibility and
accountability for budgeted funds should rest largely with department heads and that these
managers should be permitted considerable flexibility in managing their operations within the
overall limits of their budgets.
As presented herein, proposed departmental expenditures are shown at the expenditure category
level of detail (e.g. 5100 "Salaries and Benefits", 5200 "Contractual Services"). To further
explain by example, "Contractual Services" (5300 level accounts) are budgeted in total rather
than listing detail for each of the 50 individual line-item accounts that make up this category.
Following are descriptions intended to help the reader understand the makeup of the expense
categories as presented in the budget.
Salaries and Benefits (5100 level accounts) This category comprises 23 separate line-item
accounts for all wage and benefit costs paid to city employees. Examples include accounts for
regular full-time salaries, temporary salaries, FICA, retirement, health insurance, etc.
Page 13
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
Operating Supplies (5200 level accounts) - This category comprises 34 separate line-item
accounts for supplies purchased by city departments. Examples include accounts for office
supplies, computer supplies, irrigation supplies, road maintenance supplies, etc.
Contractual Services (5300 level accounts) - This category comprises 50 separate line-item
accounts for various services purchased from outside service providers. Examples include audit
fees, electricity, gas, and other utilities, printing, vehicle rental, insurance, etc.
Other Expenses (5400 level accounts) - This category comprises 6 line-item accounts, the
primary one being expenditures for conferences, training and travel.
Capital Outlays (5700 level accounts) - This category comprises 17 separate accounts for capital
equipment purchased by city departments. Examples include land purchases, vehicles, and
office furniture and equipment.
Other Financing Uses (5900 level accounts) - This category comprises 19 separate line-item
accounts for uses not technically categorized as "expenditures". Examples include principal and
interest payments on debt, operating transfers between funds, and depreciation.
The above is intended to provide you with highlights of the proposed 2008 Budget and prepare
you for a detailed review of the same. This review is scheduled for the September work session
on September 10, 2007. A public hearing on the budget is scheduled for the regular City
Commission meeting to be held on September 11, 2007. The budget could be adopted at that
meeting, the next City Commission meeting on September 25, 2007 or at a special meeting.
Regardless, the City Charter requires that the budget be adopted no later than September 25,
2007.
Finally, I would like to thank Tim Paul, Finance Director, Beth Lewis, Assistant Finance
Director, and the other members of the Finance Department for their efforts in preparing the
financial information and the proposed document.
Respectfully,
/s/ Bryon L. Mazade
City Manager
Page 14
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskeg on, MI 49443-0536
SUMMARY CHARTS AND GRAPHS Page 15
City of Muskegon
2008 Proposed Budget
Summary of Budgeted Funds
Projected Projected Ending Increase
Beginning Fund Fund (Decrease) Fund
Balance/Working Projected Projected Balance/Working Balance/Working
Fund Name Capital Revenues Expenditures Capital Capital
1 General $ 2,533,800
24,705,053
$ $ 24,779,437
$ 2,459,416
$ (74,384)
2 Major Streets 495,034
4,943,818
5,110,997
327,855
(167,179)
3 Local Streets 1,725,028
1,343,652
2,779,631
289,049
(1,435,979)
4 Criminal Forfeitures Fund 115,835
19,000
63,000
71,835
(44,000)
5 Budget Stabilization Fund 1,350,000
- 300,000
1,050,000
(300,000)
6 Farmers Market Improvement Fund 26,765
1,000
25,000
2,765
(24,000)
7 Tree Replacement Fund 10,910
3,900
3,800
11,010
100
8 Tax Increment Finance Authority Debt Fund 5,893
47,200
50,000
3,093
(2,800)
9 Downtown Development Authority Debt Fund 26,472
457,500
449,292
34,680
8,208
10 Local Development Finance Authority I Fund 333
10
- 343
10
11 Local Development Finance Authority II Fund 24,216
1,000
- 25,216
1,000
12 Local Development Finance Authority III Fund (Smart 26,344
264,500
283,547
7,297
(19,047)
13 Arena Improvement 76,486
42,000
25,000
93,486
17,000
14 Sidewalk Improvement 751,276
215,000
344,285
621,991
(129,285)
15 Public Improvement 1,805,088
460,000
512,419
1,752,669
(52,419)
16 State Grants 48
877,000
877,000
48
-
17 Marina & Launch Ramp (4,943)
300,000
284,982
10,075
15,018
18 Public Service Building 296,143
590,270
561,312
325,101
28,958
19 Engineering Services 147,231
670,000
667,069
150,162
2,931
20 Equipment 1,956,058
2,460,000
2,527,667
1,888,391
(67,667)
21 General Insurance 1,064,372
4,793,914
4,716,508
1,141,778
77,406
22 Sewer 1,144,190
5,549,669
5,711,614
982,245
(161,945)
23 Water 4,210,219
6,757,028
7,256,583
3,710,664
(499,555)
Total All Budgeted Funds $ 17,786,798
54,501,514
$ $ 57,329,143
$ 14,959,169
$ (2,827,629)
Page 16
PR
IM EMENT
FA KET
0% TI 0% OV
$50,000 0% PR 0%
REPLACEMENT $3,800 S MAR $25,000
EE $25,000
ER A IM
TR M EN
FAR AR
N PM
S TIO RA
IZA ILDING
EMENT CH
EITURE martzone) 0% OV
RF (S 1%
STABIL PR 1% VICE BU 1% LAUN 0%
0% $283,547
DDA 1% III $300,000 $512,419 $561,312 ALK $284,982
AL FO $63,000 $449,292 FA IC IM 1% A &
IN LD DGET BL IC SER DEW IN
BU SI $344,285
PU BLPU
CRIM MAR
VICES
es
G SER EETS
IN 1% her
$667,069 STR 5% Ot 5%
NEER
on $2,779,631 $2,902,637
4% LOCAL
eg UIPMENT ENGI
EQ $2,527,667
Expenditur
Musk of eted $57,329,143
CE
City N
Budg 8%
SURAIN $4,716,508
ANTS
2008 GR 2%$877,000 ND
STATE AL FU 43%
ER $24,779,437
GENER
SEW 10%
$5,711,614
TER
WA 13% EETS
$7,256,583 STR 9%
$5,110,997
MAJOR
Page 17
2008 GENERAL FUND REVENUES
$24,705,053
All Other
Sources
21%
State Shared
Revenue Taxes
18% 61%
2008 GENERAL FUND EXPENSES
$24,779,437
Off-Budget
Items
8%
Business
Value
Value A
dded
Added
Activities
18%
Customer
Value Added
Activities
74%
2008 GENERAL FUND EXPENSES
$24,779,437
Supplies
Other Uses 1% Other
0% Expenses
5%
Contractual
Services
31%
Salaries &
Benefits
Capital 61%
2%
Page 18
GENERAL FUND REVENUES AND
EXPENDITURES - LAST 10 YEARS
2008
2006
2004
2002
2000
1998
$19,000,000 $20,000,000 $21,000,000 $22,000,000 $23,000,000 $24,000,000 $25,000,000 $26,000,000
EXPENDITURES REVENUES
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
$-
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
FUND BALANCE TARGET FUND BALANCE
Page 19
Page 20
BUDGET NARRATIVES BY DIVISION
Page 21
CITY OF MUSKEGON, MICHIGAN
PUBLIC REPRESENTATION DIVISON
DIVISION SUMMARY
Promote Economic Stability, Diverse
PUBLIC REPRESENTATION Economic Growth and Redevelopment.
The City Manager's Office works with
Division Description existing and prospective businesses to
The Public Representation Division is retain and grow the economic base of the
responsible for developing, adopting, and City. This is achieved in part by the
implementing policy decisions for the City. The Business Partnership Initiative (BPI)
division is made up of four budgets: City Program that began in 1998. The City also
Commission, City Manager's Office, the City achieves this goal by encouraging economic
Attorney and Contributions to Outside development through the use of various
Organizations. Major divisional responsibilities economic development incentives. This
include establishment of policies, services, and office also works closely with Muskegon
programs for citizens, administration of daily Area First to retain businesses and develop
City operations, and providing guidance and new business opportunities.
direction to all City Departments. The
Attorney's office prepares ordinances, Sustain the Natural, Cultural and
contracts, and other legal documents for the Recreational Resources of the
City and provides legal advice. Community.
The City Commission and the City
Divisional Relationship to City Manager's Office continually promote this
Commission Goals goal through adoption and implementation
of policies and programs (Blue Wave
designation for Pere Marquette Beach) that
Take Leadership Responsibility for preserve the natural resources of the City.
Improving Race Relations and Diversity. The Public Relations Committee works to
The City Commission and the City create awareness of the positive qualities of
Manager's Office work to improve race our city to inspire community pride,
relations through action and policy. The City confidence and support. The City has also
Manager's Office will work on this goal with improved waterfront public access through
various community groups and by the site planning process for new
encouraging employees to participate in the developments (i.e. Edison Landing).
Institute for Healing Racism. The City
Commission, through the Community Foster Strong Ties Among Governments
Relations Committee, provides opportunities and Community Agencies.
for positions on various boards and The City Commission and City Manager
committees to a diverse mix of citizens. The work with various local governments and
City also co-sponsors the Dr. Martin Luther community agencies on a number of
King Jr. Unity Day Breakfast and provides projects and programs. Some of these
support to the Institute for Healing Racism. include, but are not limited to Muskegon
Area First, The Municipal Wastewater
Foster Opportunities for City Youth. Committee, Central Dispatch, MATS, MAP,
The City Commission and City Manager's MALMC, and Muskegon Neighborhood
Office support our youth by funding Associations. The City is working in
recreation and other programs. cooperation with the County on the
Page 22
redevelopment of the former Muskegon mall
site by cooperating on grant opportunities CITY OF MUSKEGON, MICHIGAN
for infrastructure for the project. The City is
also involved in One Muskegon which is a former Muskegon Mall property, Terrace Street
multi-jurisdictional effort to pursue Lots, Central Fire Station Redevelopment and
cooperative ventures among area Renaissance Zone Implementation.
municipalities. The City Manager is on the
One Muskegon steering committee and is Contributions to Outside Organizations: The
the chair of the Tier I committee. Contributions budget provides the
mechanism for the City to fund several
Maintain and Enhance the agencies that assist the City in achieving its
Neighborhoods of the City. goals and providing certain services. The
The City Commission appropriates funds following agencies are being funded in
and sets policy to address blighting 2008:
influences in the City. A multi-department
effort continues to address blight in our 1) Neighborhood Associations of
neighborhoods. The City Commission also Muskegon
works with Neighborhoods Associations on 2) Muskegon Area Transit System
their events and promotion of our City. 3) Muskegon Area First
4) Institute for Healing Racism
2008 Budget Highlights 5) Veterans Memorial Day
6) Unity Day Breakfast
City Commission: The City Commission will 7) Muskegon County Animal Control (Cats)
continue to improve community relations by 8) Muskegon Area Labor/Management
utilizing the City's Public Relations Committee
Committee. The Commission will also 9) Community Access Line of the
continue to work towards improving race Lakeshore (CALL) - 211 Service
relations within the City through supporting 10) Lakeside Business Association
the Institute for Healing Racism and the Dr.
Martin Luther King Jr. Unity Day Breakfast.
City Attorney's Office: The City Attorney will
continue to provide routine and special legal
services to the City. The City Attorney will
also prepare the necessary legal documents
(development agreements, etc.) relative to
special projects. Outside legal counsel will
continue to work on the Nugent Sand matter
and the Edison Landing Smartzone.
City Manager's Office: The City Manager's
Office will continue ongoing efforts to
improve community and race relations. The
office will pursue cooperative efforts and
potential functional cooperation and
consolidation with other local governments.
This office will also continue to work to
improve the economic climate in the City in
order to create an environment conducive to
private investment. Specific projects
include, but are not limited to the following:
Smartzone Development, Promotion of
Seaway Industrial Park, Redevelopment of
Page 23
CITY OF MUSKEGON, MICHIGAN
ADMINISTRATIVE SERVICES DIVISON
DIVISION SUMMARY
Foster Opportunities for City Youth.
ADMINISTRATIVE SERVICES We support this goal internally by employing
college students through the Julia Hackley
Division Description Summer Internship Program. The Julia
The Administrative Services Division provides Hackley Fund, managed by the Community
direct services and internal support services Foundation for Muskegon County, funded
necessary for the operation of the City. The two student interns this year. We will
division is made up of four departments: explore additional means of continuing
Administration Department, City Clerk's Office, youth internship opportunities at the City.
Civil Service Office and the Affirmative Action Externally, staff works closely with particular
Office. Major divisional responsibilities include initiatives throughout the County that seek
labor relations, legislative activities, public and to improve the employment opportunity for
community relations, election administration, young people. The Civil Service Director
City Commission affairs, business registration serves on the United Way's Helping Kids
and permits, personnel recruitment and record Succeed Vision Council. The City also
keeping, workers compensation and risk participates in the MAISD High School
management, oversight of budgetary Career Fair.
expenditures among departments, policy
updates and implementation, prevailing wage Promote Economic Stability, Diverse
contract compliance, and facilitation in Economic Growth and Redevelopment.
preparation of ADA Project Civic Access. Administrative services division meets this
goal through coordination of the following
Divisional Relationship to City programs: business registration, tax
Commission Goals abatements and contract compliance.
Through the Disadvantaged Contractors
Take Leadership Responsibility for Program, the division fosters opportunities
Improving Race Relations and Diversity. for inclusion and diversity of small business
We support and promote this goal internally contractors to participate in the economic
by fostering cultural sensitivity among development process. The city was
employees and by exploring opportunities to instrumental in increasing the enrollment of
operationalize the City's vision of having a minority and women-owned contractors in
workplace that reflects the community. We the Contractors Assistance Program
also support this goal externally by our sponsored by the Michigan State Housing
direct involvement with community groups Development Authority (MSHDA).
undertaking initiatives toward improving
race relations in the community. An Sustain the Natural, Cultural and
example of this is our involvement with the Recreational Resources of the
Institute for Healing Racism, which was Community.
created for the purpose of healing and This goal is met indirectly through our
bridging the racial divide within the written support of grant requests (by various
community. We also promote racial community agencies/groups) to enhance
diversity by directly encouraging residents and promote cultural activities.
of minority groups to apply for appointment
to City boards and committees. Foster Strong Ties Among Governments
and Community Agencies.
Page 24
This division maintains very close working
relations with many neighboring units of CITY OF MUSKEGON, MICHIGAN
government as well as community agencies.
We meet this goal through project specific
partnerships, representation on common Employment Opportunity, American's
boards and committees, shared resources with Disabilities Act (ADA) Project Civic
and value specific information, and often Access and community outreach. The
times through joint agency group meetings 2008 Budget also provides for
throughout the year. implementation of the Equal
Employment Opportunity Committee's
Maintain and Enhance the goal to improve opportunities for
Neighborhoods of the City. minority representation among city
The Administration Division contributes to seasonal Lifeguard Positions. We
The City's fight against blight through continue to assume the Risk
aggressively investigating environmental Management responsibilities of the
and sidewalk appeals. It reevaluates organization and are developing a City-
approaches to service delivery aimed at wide Safety Committee. Recruitment at
curtailing conflict between the general College-University Career Fairs will
citizenry and staff attempting to implement continue.
policies set by the City Commission for the
betterment of the community. City Clerk's Office: No staffing changes.
We will continue to work with the
Commission on their Community
2008 Budget Highlights Relations Committee, Public Relations
Committee, as well as other committees
that have a direct impact on the City.
Administration Department: The We will strive to improve communication
Assistant City Manager position is wth the residents, media and
currently vacant and is being evaluated employees. We will publish The
for continuation or modification. We Channel newsletter, improve passport
foresee continuation of services at services, improve business license
current levels. A high priority item will collections, update and add to our City
be to successfully negotiate new Clerk web page, and provide training to
collective bargaining agreements with our election inspectors on the constantly
four of our five labor groups: bargaining changing Election Laws. This budget
with Command and Patrol Units are reflects the cost of three elections and
ongoing and could continue into 2008 promises to be a busy election year.
and Fire and DPW-Unit 2 bargaining Civil Service Department: No staffing
sessions will begin in the fall of 2007. changes. The Personnel Analyst
We will also continue oversight and position remains vacant. The proposed
coordination of the organization's operating budget solely provides for
administrative needs. continuation of basic services. Efforts to
Affirmative Action and Risk fine-tune use of limited department
Management Department: Hired a new staffing and material resources in order
director. We will continue to be to advance output will continue.
responsible for Prevailing Wage Improvements in relaying information
Contract Compliance, the Worker's through the City's intranet and internet
Compensation program, Equal sites. Staff plans to continue City
representation at local career fairs as
well as administer and promote the
City's Employee Suggestion Program
and the Employee Assistance Program.
Page 25
Future Outlook CITY OF MUSKEGON, MICHIGAN
Following are the major goals of the Revise Civil Service Rules and
Administration Division incorporated in the Regulations
proposed budget: Document imaging of former employee
Administrative Services: basic records
Negotiate two to four union contracts Improve
job
description
content
and manage grievances filed. Enhance Civil Service web page to
Continue to work towards improving include links to job descriptions
Labor / Management relations.
Continue on-going efforts to improve
race relations.
Foster the accomplishment of the City
Commission Vision, Value and Mission
within the organization and the
community.
Affirmative Action and Risk Management:
Work more closely with the Civil Service
and Finance departments to implement
the Workers Compensation and Risk
Management Program.
Develop a City-Wide Safety Committee
Continue Equal Employment
Opportunity and inclusion efforts.
Continue to pursue contract compliance.
Work closely with Departments
facilitating communication needs in
preparation for ADA Project Civic
Access compliance review.
City Clerk's Office:
Enhance existing voter registration
programs with seniors, students, and
neighborhood groups.
Train election Inspectors on newly
implemented changes to the Election
Law.
Work closely with the Public Relations
Committee to recruit organizations to
hold their events within the City
Schedule weekend hours for passport
services.
Continue to update the document
imaging systems and provide training to
employees.
Civil Service:
Update employee handbook and
orientation materials
Page 26
CITY OF MUSKEGON, MICHIGAN
FINANCIAL SERVICES DIVISON
DIVISION SUMMARY managers with timely and accurate financial
information critical to prudent and effective
Financial Services stewardship. Sound finances are important
in shaping the perception that citizens,
Division Description investors, bond rating agencies and others
The Financial Services Division is made up of have of the City of Muskegon. Staff of the
the following departments: Finance Financial Services Division take pride in
Administration, City Treasurer's Office, Income providing excellent financial leadership for
Tax Administration and Information Systems. the City in accordance with the highest
The division is responsible for all financial professional standards.
management activities of the City; specifically,
property tax collections, utility billing and Foster Opportunities for City Youth.
collections, payroll and employee benefits, The Division participates in Phoenix
accounts payable and accounts receivable, University and Grand Valley State
income tax collections and management of the University's Internships programs. Staff
City's computer network and related information spends quality time to provide personal and
systems. Additionally, the division oversees the professional development to interns which
following contractual relationships: ensures their competitive advantage when
entering the job market. Additionally
Muskegon County Equalization several staff members volunteer in the
Department which performs all property schools through Junior Achievement.
tax assessment services for the City.
L. C. Walker Arena and the associated Promote Economic Stability, Diverse
contract with the Arena Management Economic Growth and Redevelopment.
Group LLC. The Finance Division plays a key role in
Fisherman's Landing and the associated analyzing the financial impact, budgeting
management contract with Fisherman's and identifying funding sources for City
Landing, Inc. economic development initiatives such as
the Mall Redevelopment, Smart
Divisional Relationship to City Zone/Edison Landing, Seaway Industrial
Park and the Farmers Market relocation.
Commission Goals Ultimately, implementation and future
oversight of these initiatives becomes the
City Mission Statement: To improve the responsibility of the Finance Division
quality of life for the citizens of through activities such as bond issuance
Muskegon through stewardship of and tax increment administration.
resources, excellent service and
leadership for the greater community . Foster Strong Ties Among Governments
It is primarily in the area of resource and Community Agencies.
stewardship that the Finance Division The Finance Division works closely with
contributes to this mission. Employees of other governmental units to ensure services
the division work to maximize the financial are provided in a cost-effective manner.
resources available to support municipal Examples include tax collection services
services through revenue collections, provided by the City Treasurer's Office, dog
investments, and sound financial license fee collection for Muskegon County
management practices. Also, they provide Vector Control and the intergovernmental
the City Commission and department agreement with Muskegon County for
Page 27
assessment services. Additionally, staff is
involved with the One Muskegon CITY OF MUSKEGON, MICHIGAN
intergovernmental cooperation initiative.
cost increase is about three and a half
Develop and Maintain City Infrastructure percent (3.61%).
and Facilities.
The Finance Division strives to be on the City Treasurer: The 2008 budget proposes
cutting edge of new technology. taking on the summer property tax collection
Improvements and updates to the security from the County with an additional
of the City's information network protect the Customer Service Representative II
integrity of our information and continual position. This would generate $75,000 of
enhancements to the City' web site and additional revenue and $53,200 in additional
Intranet site provide access to more expenses. The Treasurer's office plans to
information and services to City of phase in monthly utility billing for 2009 also
Muskegon employees and citizens. utilizing the additional position. The
Recently the City of Muskegon's web site Treasurers office will continue coordination
was rated 5th out of 534 city and villages in of collection efforts with the Income Tax
the State of Michigan by Cyber-state.org. Office increasing the efficiency of both
offices.
Maintain and Enhance the
Neighborhoods of the City. Income Tax Administration: Staffing levels
The Division's Reengineering Committee is will remain constant. The Income Tax
continually reevaluating techniques for Administrator has now taken over the
improving our collection efforts especially on additional duties of Deputy Treasurer. This
environmental invoices. The Committee change along with the physical move of the
has also been instrumental in updating and Income Tax office closer to the Treasurer's
centralizing data bases used by City Office will help these two offices work
departments for everything from City together to streamline collection efforts and
mailings to billing information. These efforts increase overall efficiency. The budget
will reduce blight in our neighborhoods and provides for continued collection and tax
increase the flow of information to residents. enforcement activities.
2008 Budget Highlights LC Walker Arena: The 2008 budget
provides for the General Fund to pay
Finance Administration: No staffing changes $235,000 in Management Fees and to
are proposed. The budget provides for maintain a Capital Improvements Fund for
continuation of current services. Staff will the Arena. Staff is optimistic that 2008 will
continue to research cost effective be a good year for the Arena with a
alternatives for employee and retiree favorable Hockey schedule, Arena Football
benefits including retiree healthcare. The returning with an earlier schedule and the
Finance office will continue monitoring strong possibility for an increased number of
operations at Fisherman's Landing. summer events.
Assessing Services: The 2008 budget Information Technology: The department is
contemplates continuation of the contract focusing efforts on maintaining the same
with the Muskegon County Equalization level of service for network and data
Department for all assessment services. operations. Services such as 24x7 support,
The cost of this contract is tied to the actual telephone call center support and other non
year-to-year increase in the City's total critical operations have been eliminated and
taxable property valuation. For 2008, this replaced with electronic solutions.
Page 28
Future Outlook
CITY OF MUSKEGON, MICHIGAN
Following are some of the major goals of the Income Tax Administration
Finance Division incorporated in the 2008 Work with an outside vendor to
proposed budget: implement a web based withholding
payment program.
Finance Administration Consider the reorganization of our
Constant monitoring of the City's budget withholding database.
so management has the most up-to- Continue to increase the number of
date accurate information to respond to businesses that electronically submit
changes as quickly as possible. their W-2's and W-3 information to our
Continue to develop strategies and department.
safeguards to protect the City's financial Increase the number of direct deposit
health in light of the numerous fiscal refunds.
challenges facing older, urban core To accept an Individual tax return
cities like Muskegon. electronically or have the ability to scan
Staff will explore ownership and/or information from a tax return directly into
management alternatives for Hartshorn our tax software system.
Marina to decrease the General Fund
subsidy to this operation. L C Walker Arena
Increase ACH vendor payments using Continued collaboration with Arena
GEMS software enhancement. Management to increase the number of
Continue working with One Muskegon in events and overall attendance at the
the areas of purchasing and shared Arena.
financial services Explore possible retail opportunities
at the Arena.
Assessing Services Devise other income-producing
Update mapping of the entire city and strategies.
convert the drawing into a new geo- Pursue sale of Naming Rights to the
database. Arena.
Activate and integrate an elevation
model and digital orthophotography as Information Technology
GIS layers. Continue adding features to the City's
web portal (website) that will empower
City Treasurer and enable customers to perform
Implement Utility Billing Software functions online, such as paying bills,
solutions compatible with other systems record retrieval and more. By making
currently used within the City while information available and moving
improving productivity and operational additional functions to our web portal,
efficiency. Information Technology can help reduce
Take over collections of summer tax the burden of staff reductions and
levy from the County, thus all taxes limited time for other departments.
levied on properties in the City will be Migrate remaining databases to a
collected by the City. standard Database Management
Continue to investigate and implement System for future data mining, research
alternative pay