City Commission Packet Archive 06-09-2026

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                 June 9, 2026 @ 5:30 PM
     MUSKEGON CITY COMMISSION CHAMBERS
    933 TERRACE STREET, MUSKEGON, MI 49440
                                AGENDA
☐   CALL TO ORDER:

☐   PRAYER:

☐   PLEDGE OF ALLEGIANCE:

☐   ROLL CALL:

☐   HONORS, AWARDS, AND PRESENTATIONS:

☐   PUBLIC HEARINGS:
    A. PA 198 Industrial Facilities Exemption — American Fabricated Products,
       INC. — 331 W. Laketon Ave. Economic Development
☐   PUBLIC COMMENT ON AGENDA ITEMS:

☐   CONSENT AGENDA:
    A. Approval of Minutes City Clerk
    B. Financial Policies Finance
    C. Equipment Purchase: Parks Department - Bobcat UW56 DPW- Parks
    D. Equalization and Assessing Contract Finance
    E. MERS 457 Participation Agreement Finance
    F. Asphalt Emulsion Spill Remediation Public Works
    G. Beach St. Parking & Pedestrian Facility Improvements Public Works
    H. Approval of the FY 2026-27 Budget Manager's Office
    I. Contract for Legal Services Manager's Office
    J. Rad Dads Agreement Manager's Office
☐   UNFINISHED BUSINESS:



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☐    NEW BUSINESS:

☐    ANY OTHER BUSINESS:

☐    GENERAL PUBLIC COMMENT:
► Reminder: Individuals who would like to address the City Commission shall do the following: ►Fill out a
request to speak form attached to the agenda or located in the back of the room. ► Submit the form to
the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name. ►Limit of
3 minutes to address the Commission.

☐    CLOSED SESSION:
     A. Closed Session - Attorney Client Privileged Communication City Clerk
☐    ADJOURNMENT:



AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF THE CITY OF
MUSKEGON AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES

To give comment on a live-streamed meeting the city will provide a call-in telephone
number to the public to be able to call and give comment. For a public meeting that is
not live-streamed, and which a citizen would like to watch and give comment, they
must contact the City Clerk’s Office with at least a two-business day notice. The
participant will then receive a zoom link which will allow them to watch live and give
comment. Contact information is below. For more details, please visit:
www.shorelinecity.com
The City of Muskegon will provide necessary reasonable auxiliary aids and services, such
as signers for the hearing impaired and audio tapes of printed materials being
considered at the meeting, to individuals with disabilities who want to attend the
meeting with twenty-four (24) hours’ notice to the City of Muskegon. Individuals with
disabilities requiring auxiliary aids or services should contact the City of Muskegon by
writing or by calling the following:

Ann Marie Meisch, MMC. City Clerk. 933 Terrace St. Muskegon, MI 49440. (231)724-6705.
[email protected]




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                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026                Title: PA 198 Industrial Facilities Exemption —
                                                     American Fabricated Products, INC. — 331 W.
                                                     Laketon Ave.

Submitted by: Jocelyn Hines, Development             Department: Economic Development
Analyst

Brief Summary:
Pursuant to Public Act 198 of 1974, as amended, American Fabricated Products, INC has requested
the issuance of an Industrial Facilities Exemption certificate for their property located at 331 W.
Laketon Ave.

Detailed Summary & Background:
American Fabricated Products, Inc. (American Fab) has submitted an application for an Industrial
Facilities Exemption (IFT) certificate for real property improvements at 331 W. Laketon Avenue. The
company plans to rehabilitate the 64,366 square-foot facility with a total investment of $665,996.

American Fab is relocating its operations from Spring Lake to the City of Muskegon. Approximately
40% of the company's current workforce resides within the City of Muskegon, and the company
anticipates creating 22 additional jobs as part of this expansion.

If approved, the IFT certificate would reduce property taxes on the eligible real property
improvements by 50% for the duration of the exemption.

American Fab is a West Michigan manufacturer specializing in advanced metal fabrication, precision
machining, laser cutting, CNC machining, welding, robotic welding, metal forming, assembly, and
prototype-to-production manufacturing services. The company serves a diverse customer base,
including the defense, automotive, furniture, industrial, logistics and warehousing, agricultural,
medical, and food service sectors, and supports both OEMs and their suppliers. American Fab is also
a supplier to prime and sub-prime defense contractors and manufactures components for military
defense vehicles.

In addition to the IFT request, American Fab will be requesting a Brownfield Plan Amendment from
the Brownfield Redevelopment Authority on June 9, 2026, to allow for the reimbursement of eligible
activities. Final consideration of the Brownfield Plan Amendment is scheduled before the City
Commission on June 23, 2026.

Following its review, the City's Internal Tax Committee recommends approval of a 9-year abatement
term for the proposed investment.




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Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life - Reduction of blighted commercial properties

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                   Budgeted Item:
N/A                                                  Yes           No           N/A     X

Fund(s) or Account(s):                              Budget Amendment Needed:
N/A                                                  Yes           No           N/A     X

Recommended Motion:
I move to close the public hearing and approve the issuance of an Industrial Facilities Exemption
certificate for a period of nine (9) years for the property located at 331 W. Laketon Ave. and to
authorize the Mayor and City Clerk to sign the application and resolution.

Approvals:                                          Name the Policy/Ordinance Followed:
Immediate Division        X                         Public Act 198 of 1974, as amended
Head
Information
Technology
Other Division Heads
Communication
Legal Review




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5/26/26




          Page 5 of 209
               61010
City of Muskegon                            6/9/2026



                             Ann Marie Meisch          [email protected]
 933 Terrace St. Muskegon, MI 49440
231-724-6705




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                                Resolution No. _______

                          MUSKEGON CITY COMMISSION

RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF INDUSTRIAL
 FACILITIES EXEMPTION CERTIFICATE American Fabricated Products, INC

WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public
    hearing held on April 14, 2026 this Commission by resolution established
    an Industrial Development District as requested by American Fabricated
    Products, INC, 331 W. Laketon Ave., Muskegon, Michigan 49441; and

 WHEREAS, American Fabricated Products, INC has filed an application for the
     issuance of an Industrial Facilities Tax Exemption Certificate with respect to
     the rehabilitation of a facility within said Industrial Development District; and

 WHEREAS, before acting on said application the Muskegon City Commission held
     a public hearing on June 9, 2026 at the Muskegon City Hall in Muskegon,
     Michigan at 5:30 p.m. at which hearing the applicant, the assessor and
     representatives of the affected taxing units were given written notice and
     were afforded an opportunity to be heard on said application; and

 WHEREAS, the rehabilitation of the facility is calculated to and will have the
     reasonable likelihood to retain, create, or prevent the loss of employment in
     Muskegon, Michigan; and

 WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes
     within the City of Muskegon, will not exceed 5% of an amount equal to the
     sum of the SEV of the local government unit, plus the SEV of personal and
     real property thus exempted.

        NOW, THEREFORE, BE IT RESOLVED by the Muskegon City
        Commission of the City of Muskegon, Michigan that:

         1) The Muskegon City Commission finds and determines that the
            Certificate considered together with the aggregate amount of
            certificates previously granted and currently in force under Act No. 198
            of the Public Act of 1974 as amended shall not have the effect of
            substantially impeding the operation of the City of Muskegon or
            impairing the financial soundness of a taxing unit which levies ad
            valorem property taxes in the City of Muskegon.

         2) The application of American Fabricated Products, INC, for the issuance
            of an Industrial Facilities Tax Exemption Certificate with respect to the
            rehabilitation on the following described parcel of real property situated
            within the City of Muskegon to wit:

            CITY OF MUSKEGON LOTS 5-7 & PART OF LOTS 2-4 & 8-9 INC BLK 1 & LOTS
            4-7 & LOTS 14-17 & PART OF LOTS 8-9 INC & 13 BLK 2 DENNIS SMITH & CO'S




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           2ND ADDITION ALSO E 33 FT VAC FAIRVIEW ST AND PART OF VACATED MAY
           ST ALSO PART OF NW 1/4 OF NE 1/4 SEC 31 T10N R16W LYING ELY OF GTW
           R/R ROW DESC AS FOLLOWS BEG AT NE COR LOT 7 OF DENNIS SMITH &
           CO'S 2ND ADDITION BEING POB TH S 00D 14M 00S W ALG WLY ROW LN OF
           KEATING ST 150.28 FT TH N 89D 31M 05S E 329.11 FT TH S 00D 11M 47S E
           ALG WLY ROW LN OF 6TH ST 224.34 FT TH S 89D 09M 04S W 149.91 FT TH S
           00D 14M 00S W 62.17 FT TH N 89D 21M 25S W 147.89 FT TH N 00D 14M 00S E
           194.05 FT TH N 89D 46M 00S W 151.64 FT TH N 34D 34M 28S W 291.58 FT TH
           S 89D 58M 00S E ALG SLY ROW LN OF LAKETON AVE 285.08 FT TO
           POB TOGETHER WITH & SUBJ TO A 20 FT WIDE ESMT FOR ACCESS SUBJ
           TO ESMT L/P 4399/224


    3) The Industrial Facilities Tax Exemption Certificate is issued and shall be
    and remain in force and effect for a period of nine (9) years on real
    property.


Adopted this 9 Day of JUNE 2026

Ayes:

Nays:

Absent:

                                             BY: ________________________________
                                                      Ken Johnson Mayor

                                            ATTEST: ___________________________
                                                       Ann Meisch, City Clerk




                                      CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a
resolution adopted by the Muskegon City Commission, County of Muskegon,
Michigan, at a regular meeting held on June 9, 2026.


                                                    __________________________
                                                      Ann Meisch, City Clerk




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                                                                                                                                                                        (EEO-1 ) IFT-REPORT
COMPANY:      AMERICAN FAB                                                                DATE:                      3-Jun
ADDRESS:      16910 148th Ave. Spring Lake, MI 49456

CONTACTS:     Andrew Blankenship                                                   PHONE:             313-712-6600                      EMAIL: [email protected]
              Russ Golemba                                                         PHONE:             616-485-8899                      EMAIL: [email protected]

                                                                                                                              TOTAL EMPLOYEES:                    27

                                HISPANIC OR                               MALE                                                             FEMALE
                                  LATINO                                        NATIVE    AMERICAN                                                NATIVE    AMERICAN
                                                           BLACK OR           HAWAIIAN/     INDIAN/                          BLACK OR           HAWAIIAN/     INDIAN/
                                                            AFRICAN            PACIFIC     ALASKAN    TWO OR MORE             AFRICAN            PACIFIC     ALASKAN     TWO OR MORE
JOB CLASSIFICATION             MALE       FEMALE   WHITE   AMERICAN   ASIAN   ISLANDER      NATIVE       RACES      WHITE    AMERICAN   ASIAN   ISLANDER      NATIVE        RACES      TOTALS
Office Employee                                     6                                                                1                                                                      7
Production Employee                   1             19                                                                                                                                     20




                             Total # Total %
Total Caucasian            26               96%
Total Minorities           1                  4%
Male                       26               96%
Female                     1                  4%

              Totals:



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       Letter of Intent: Equal Employment Opportunity and Inclusive Workforce Development

       _AMERICAN FAB__ reaffirms its ongoing commitment to the principles of equal opportunity,
       diversity, equity, and inclusion. In alignment with the intent of applicable executive orders and
       the City of Muskegon’s Equity and Inclusion goals, we will continue to partner with the City’s
       Equal Employment Opportunity (EEO) Director and the Development Services Department to
       review, maintain, and strengthen our Equal Employment Opportunity policies and practices.

       Our Commitment

       It remains the policy of __AMERICAN FAB_____ to provide equal employment opportunities
       based solely on merit, qualifications, and business need—without discrimination based on race,
       color, religion, sex, national origin, age, disability, weight, height, veteran status, marital status,
       sexual orientation, or gender identity.

       We are committed to advancing workforce diversity and will continue to evaluate our internal
       metrics as we work toward the City’s goals of achieving 14% minority and 6.9% female
       representation in our workforce.

       _AMERICAN FAB____ is dedicated to identifying and eliminating systemic barriers that may
       prevent underrepresented groups from fully participating in our employment processes. We will
       continue to source, recruit, and engage talent from the greater Muskegon community, and we
       will prioritize the intentional inclusion of minority and women candidates who meet the
       minimum qualifications for open positions.

       As part of our ongoing efforts, __AMERICAN FAB____ will follow up in one year to assess
       progress toward these goals and to identify areas of improvement, ensuring accountability and
       continued alignment with our commitments.

       This policy and our commitment to it are hereby reaffirmed by:



                                                                      _________________________________
                                                                      Russell S Golemba, Vice President
                                                                      American Fabricated Products
                                                                                    June 4, 2026




231.724.6705   |   933 Terrace St, Muskegon, MI 49440-1397   |   www.shorelinecity.com

                                                                                                            Page 45 of 209
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026             Title: Approval of Minutes

Submitted by: Ann Meisch, City Clerk              Department: City Clerk

Brief Summary:
To approve minutes of the May 26, 2026, City Commission Meeting.

Detailed Summary & Background:

Goal/Action Item:

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                 Budgeted Item:
                                                   Yes           No            N/A   X

Fund(s) or Account(s):                            Budget Amendment Needed:
                                                   Yes           No            N/A   X

Recommended Motion:
Approval of the minutes.

Approvals:                                        Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review




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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
               May 26, 2026 @ 5:30 PM
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
                                 MINUTES

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, May 26, 2026.
Pastor Adam Dollar from Evanston Avenue Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of
Allegiance to the Flag.

ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Destinee Keener, Commissioners
Rebecca St.Clair, Jay Kilgo, Willie German, Jr., Kiley Jackson, and Katrina
Kochin (left at 8:15 p.m.), City Manager Jonathan Seyferth, City Attorney
Brennen Gorman, and City Clerk Ann Marie Meisch

2026-37 PUBLIC HEARINGS
    A. Neighborhood Enterprise Zone Certificates — 367 E. Forest Ave., 377 E.
       Forest Ave., 58 E. Grand Ave., 77 Monroe Ave., and 181 Irwin
       Ave. Economic Development
Stephens Homes and Investments LLC has submitted five applications for
Neighborhood Enterprise Zone (NEZ) certificates for the construction of new
single-family homes at 58 E. Grand Avenue, 367 E. Forest Avenue, 377 E. Forest
Avenue, 79 Monroe Avenue, and 181 Irwin Avenue. These addresses are
located within existing Neighborhood Enterprise Zone Districts and are eligible
for consideration under the Neighborhood Enterprise Zone Act, which
encourages the construction and rehabilitation of residential housing within
eligible communities.
These properties were previously purchased from the City of Muskegon for
residential development. As part of the development process, one parcel was
split to create two separate addresses and one parcel underwent an address
change. Estimated project costs for the proposed homes range between
$125,000 and $180,000. The applicant has paid all required application fees



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and has met all local requirements for the issuance of NEZ certificates. Stephens
Homes and Investments LLC is requesting that each certificate be issued for a
term of 15 years. Approval of these applications would grant each home a
Neighborhood Enterprise Zone tax abatement that may reduce property taxes
by up to approximately 50% for the requested 15-year term.
STAFF RECOMMENDATION: I move to close the public hearing and approve
Neighborhood Enterprise Zone (NEZ) certificates for 15 years for the properties
located at 58 E. Grand Avenue, 367 E. Forest Avenue, 377 E. Forest Avenue, 79
Monroe Avenue, and 181 Irwin Avenue, and authorize the Mayor and City
Clerk to sign the applications and resolutions.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner St.Clair, second by Vice Mayor Keener, to close the
public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates
for 15 years for the properties located at 58 E. Grand Avenue, 367 E. Forest
Avenue, 377 E. Forest Avenue, 79 Monroe Avenue, and 181 Irwin Avenue, and
authorize the Mayor and City Clerk to sign the applications and resolutions.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Jackson, Kochin, and
           St.Clair
           Nays: None
MOTION PASSES

    B. FY 2026-27 Budget - Public Hearing Manager's Office
This is a public hearing for the Fiscal Year 2026-27 budget which was presented
to the Commission on May 12, 2026. We anticipate final budget adoption at
the June 9, 2026, meeting.
STAFF RECOMMENDATION: Motion to close the public hearing.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner Kilgo, second by Commissioner St.Clair, to close the
public hearing.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, Kochin, St.Clair, and
           Johnson
           Nays: None
MOTION PASSES

PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.


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2026-38 CONSENT AGENDA
    A. Approval of Minutes City Clerk
To approve minutes of the May 11th Commission Worksession and the May 12th
Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
    B. Amendment to the Zoning Ordinance - Waterfront Setbacks in FBC, LMR.
       (SECOND READING) Planning
Staff-initiated request to amend Section XX of the zoning ordinance to change
the required front setbacks for waterfront properties in the Lakeside Mixed
Residential context area.
The Lakeside Mixed Residential context area has a front build-to-zone of 5-12
feet. The Form-Based Code allows waterfront properties to consider either the
street side or the waterfront side as the front of the property. This means that a
building may be required to be placed anywhere from 5 to 12 feet from the
property line facing the water. Since all of the property may not be above the
ordinary high watermark, and also since water levels fluctuate, it would not be
possible to place a building this close to the water in many situations.
Staff is proposing to amend the ordinance to require waterfront properties to
only build above the ordinary high watermark and not to have a traditional
setback from the waterfront property line.
The Lakeside Mixed Residential context area allows detached houses,
duplexes, rowhouses, small multiplexes, and cottage retail buildings.
The Planning Commission unanimously (5-0, 4 members absent) recommended
approval of the amendment.
STAFF RECOMMENDATION: I move the request to amend Section XX of the
zoning ordinance to change the required front setbacks for waterfront
properties in the Lakeside Mixed Residential context area be approved.
    E. Energy Performance Contract with Johnson Controls, Inc. Public Works
Staff offers an Energy Performance Contract with Johnson Controls, Inc. that will
satisfy many capital needs throughout the City and generate over $19M in
savings, as detailed in the contract, for a total cost of $43,296,839.
In May of 2025, the Commission approved Johnson Controls, Inc. (JCI) as the
City's service provider for an Energy Performance Contract (EPC). Since that
time, and with various approvals along the way by the Commission, staff and
JCI have worked to develop a series of items that address capital needs of the
City and fit well within the structure of an EPC. On Monday, May 11 of this year,
staff and JCI presented the details of the contract and the items proposed
within it. The specific items and terms are also detailed within the contract. To
reiterate the highlights:




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    • A complete renovation of the DPW facility, including the addition of
      6,000 ft2 of community space
    • Replacement of over 10,000 water meters and the repair or replacement
      of all commercial meters
    • HVAC improvements at City Hall and the Water Filtration Plant, including
      replacing all City Hall windows
    • Leak detection in portions of the water system, and infiltration-reducing
      measures in the sewer system
    • Other electric- and water-saving improvements at City Hall, the marina,
      and in our parks and cemeteries

The EPC format allows future savings that are generated by the improvements
to be used to defray the cost of those improvements. As such this EPC includes
savings of $19,593,375, provided by such things as increased water revenue
due to the meter replacements, and utility savings generated by more efficient
equipment. These savings are guaranteed - if they fail to materialize and the
City has met its related obligations, JCI will pay the City an equivalent amount
for the missing savings.
The project is proposed to be financed using a financial instrument known as a
Tax-Exempt Lease Purchase (TELP). If the Energy Performance Contract is
approved, JCI will work with City staff to issue a Request for Proposals to
banks. Staff and JCI will negotiate terms, and return to the Commission with the
loan proposal for approval at a future Commission meeting. The TELP does not
count against the City's bonding capacity, yet still provides a competitive rate
structure.
After financing and savings, and after being distributed to the various funds
that support the items included in the project, the financial impact to the City's
budget is approximated by fund below. Actual payments in any given year will
vary according to the offsetting savings. The figures shown are an annual
average over the life of the project financing assuming a rate of 4.5%.

Annual Total        $2,345,188
101 (General)       $356,609
20X (Highway)       $575,617
590 (Sewer)         $324,754
591 (Water)         $511,143
594 (Marina)        $19,231
643 Engineering)    $104,279
661 (Equipment)     $457,397

On the "Budgeted Item" line, it is noted as N/A as this will be budgeted for in



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future fiscal years starting in FY 2027-28.
STAFF RECOMMENDATION: Move to approve the Energy Performance Contract
with Johnson Controls, Inc. as detailed in the contract for a total cost of
$43,296,839, and to authorize the Mayor and Clerk to sign.
    G. Purchase of New Excavator for DPW Public Works
Staff requests authorization to purchase a CAT 317 excavator from MacAllister
Equipment in the amount of $247,825.58.
The time has come to replace our existing excavator. The current excavator is
from 2004 and is becoming unreliable. The excavator is used for snow fence at
the beach, docks at the marina, tearing down hazardous structures after fires,
road projects, and water/sewer line repairs. After demoing a new 317 CAT from
MacAllister Equipment at the compost site, staff verified it is the right piece of
equipment for the needs at hand. The 317 CAT is similar to the existing
excavator with slight upgrades to load capacity and digging depth. The new
excavator comes with modern technology and safety features, like 360 view
cameras, that will help the DPW staff operate safely and efficiently. MacAllister
has been awarded the Sourcewell contract for Caterpillar equipment in the
state of Michigan, with pricing for this model at $247,825.58.
Sourcewell is an organization that competitively solicits equipment, technology,
and services and provides the pricing via cooperative purchasing agreements
that allow public entities - such as government agencies, school districts, tribal
nations, and nonprofits - to make purchases satisfying policy requirements such
as public bidding.
STAFF RECOMMENDATION: Move to authorize staff to purchase a CAT 317
excavator from MacAllister Equipment in the amount of $247,825.58.
    K. Termination of Easement - 20 W. Muskegon Avenue Economic
       Development
Muskegon Pediatrics is buying the building at 20 W. Muskegon from Fresh Coast
Alliance in the Pine Street corridor for their new offices. There is an unnecessary
facade easement on the building that must be terminated prior to sale.
Muskegon Pediatrics has an accepted offer on the building at 20 W. Muskegon
after they determined it was a preferable location for their offices than their
previous planned site at the Century Club. During title work on the transaction,
it was discovered there is an old easement related to the exterior facade of the
building. It appears to date back decades and may actually be related to a
companion building that has since been removed from the parcel. In order for
the building sale to proceed, the easement must be terminated. Staff
recommends approval of the termination prepared by the City Attorney.
STAFF RECOMMENDATION: Motion to approve the termination of easement for
20 W. Muskegon Avenue, and to authorize the Mayor and Clerk to sign.




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Motion by Commissioner German, second by Commissioner Kilgo, to adopt the
Consent Agenda as presented minus Items C, D, F, H, I, and J.
ROLL VOTE: Ayes: German, Jackson, Kochin, St.Clair, Johnson, Kilgo, and
           Keener
           Nays: None
MOTION PASSES

2026-39 ITEMS REMOVED FROM THE CONSENT AGENDA
   C. Amendment to the Zoning Ordinance - Several Changes to the Form
      Based Code (SECOND READING) Planning
Staff-initiated request to amend Section XX of the zoning ordinance to
remove/edit several areas of the form-based code.
Staff is proposing several amendments to the Form-Based Code (FBC). The
reasoning behind these amendments is as follows:

   o The FBC has been used for over 10 years now, staff have noticed some
     regulations that need to be removed or revised.
   o Rezonings have brought about multiple expansions across eight
     neighborhoods (Nelson, Lakeside, Nims, Jackson Hill, Campbell Field,
     Northeast, Angell, and McLaughlin).
   o Creation of new Context Areas specific to the Lakeside Business District
     and adjacent residential areas in May, 2019. Modeled after, but never
     fully integrated into the original FBC document.
   o Continued rezonings/expansion anticipated to implement the goals of
     the Master Land Use Plan.
   o Eliminate redundancies to improve readability for users and generally
     make the document more accessible.
   o Simplify regulations to ensure that the code regulates the things that it
     should be, and not the things it shouldn’t be.
   o Opportunity to address document formatting as the Zoning Ordinance
     transitions to the Municode platform.

In general, the proposed updates include:

   o Updated wording to be more specific, clear, or concise, where
     necessary.
   o Eliminated redundant language and references to Zoning Ordinance
     sections with overlapping regulations.
   o Corrected Zoning Ordinance section references throughout.
   o Removed unhelpful regulations that have minor effect on intended
     results.



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    o Removed "suggested" regulations, some of which will be used to draft
      actual regulations.

Jamie Pesch from the Planning Department gave a presentation on the
proposed amendments.
The Planning Commission unanimously (5-0, 4 members absent) recommended
approval of the amendments.
STAFF RECOMMENDATION: I move the request to amend Section XX of the
zoning ordinance to edit several areas of the form-based code be approved
as presented.

Motion by Commissioner Kilgo, second by Commissioner St.Clair, to move the
request to amend Section XX of the zoning ordinance to edit several areas of
the form-based code be approved as presented.
ROLL VOTE: Ayes: Jackson, Kochin, St.Clair, Johnson, Kilgo, Keener, and
           German
           Nays: None
MOTION PASSES

    D. Amendment to the Harbor 31 Planned Unit Development (PUD) (SECOND
       READING) Planning
Request to amend the Harbor 31 Planned Unit Development (PUD) at 600
Shoreline Dr. (PUD address) for a new residential development at 170 Viridian
Dr. (development address) and to amend the waterfront access paths within
Harbor 31.
The proposed development is located within the Harbor 31 Planned Unit
Development (PUD). Much of the interior of the subject parcel is considered a
wetland and is prohibited from development by the Michigan Department of
Environment, Great Lakes, and Energy (DELEG). The areas restricted from
development are enclosed by split rail fencing and are considered an
environmental easement.
The project consists of four large multiplex buildings, each containing 12 units,
for a total of 48 units. There are 67 off-street parking spaces and five parking
spaces in the terrace proposed.
Large multiplex buildings are an allowed building type in this context area.
However, the location of the wetlands prohibits traditional building and parking
placement, requiring the need to amend the PUD. The initial project for this
parcel was townhomes, but the environmental easements caused issues with
the site layout.
A portion of the Grand Valley State University (GVSU) parking lot to the west of
the development actually encroaches onto the Meadows property. This will



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have to be removed prior to construction. Page 2 of the site plan depicts the
existing parking lot in relation to the proposed development, and Page 3
depicts what the revised GVSU parking lot could look like, although this is not a
finalized concept. GVSU will have to apply to the City to reconfigure their
parking lot.
A stormwater management permit application will need to be submitted to the
Engineering Department, and the original storm water management permit for
the overall site may need to be modified if changes to the original
management plan are contemplated.
Notice was sent to all addresses within 300 feet of the property. At the time of
this writing, staff had received one comment from the public. Kevin Murphy,
who is an owner of the Vida Nova condominiums, made several comments
regarding issues he has with the overall development of Harbor 31. His
comments appear to be issues with the Harbor 31 board, the lack of boardwalk
signage for the public, and issues with the placement of electrical equipment,
but there were no specific comments about the proposed development.
Staff recommends approval of the request with the condition that the western
path to the boardwalk is installed and functional before Certificates of
Occupancy are issued for the Meadows.
The Planning Commission unanimously recommended approval of the request
with the following conditions:

   1. The stormwater permit must be updated with the Engineering Dept.
   2. The Certificates of Occupancy for the Meadows are not issued until the
      western path to the boardwalk is constructed and usable and includes a
      public access sign.
   3. Any street trees removed for terrace parking must be replaced
      elsewhere within Harbor 31, as approved by staff.
   4. The landscaping plan shall be revised to include an additional 10
      canopy trees on-site, including at least two per parking lot.
   5. The drive entrance to the north be realigned, as approved by staff. The
      eight parking spaces in this area must also be removed.

The site plan has been updated since the Planning Commission meeting and
has addressed items 3–5.
STAFF RECOMMENDATION: I move the request to amend the Harbor 31 Planned
Unit Development for a new residential development at 170 Viridian Dr., and to
amend the waterfront access paths within Harbor 31, be approved with the
following conditions:
1. The stormwater permit must be updated with the Engineering Dept.
2. The Certificates of Occupancy for the Meadows are not issued until the
western path to the boardwalk is constructed and usable and includes a public
access sign.



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                                                                              Page 54 of 209
Motion by Commissioner Kochin, second by Commissioner Kilgo, that the
request to amend the Harbor 31 Planned Unit Development for a new
residential development at 170 Viridian Dr., and to amend the waterfront
access paths within Harbor 31, be approved with the following conditions:
1. The stormwater permit must be updated with the Engineering Dept.
2. The Certificates of Occupancy for the Meadows are not issued until the
western path to the boardwalk is constructed and usable and includes a public
access sign.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, and Jackson
           Nays: Kochin, Keener, and German
MOTION PASSES

    F. Juneteenth Resolution 2026 Commissioner Request
Resolution to recognize Friday, June 19, 2026, as Juneteenth National
Independence Day and to authorize the flying of the Juneteenth Flag at City
Hall and Hackley Park from June 19th through the end of the month.
STAFF RECOMMENDATION: Motion to approve the resolution as presented and
fly the Juneteenth flag at City Hall and Hackley Park from Friday, June 19, 2026,
through June 30, 2026.

Motion by Commissioner German, second by Vice Mayor Keener, to approve
the resolution as presented and fly the Juneteenth flag at City Hall and Hackley
Park from Friday, June 19, 2026, through June 30, 2026.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Jackson, and
           Kochin
           Nays: None
MOTION PASSES

    H. Liquor License Extension – Wonderland Distilling Co, 1989 Lakeshore
       Drive, Suite B Economic Development
Wonderland Distilling Company, located at 1989 Lakeshore Drive, Suite B, is
requesting Local Government Approval for an amendment to its existing liquor
license originally approved in 2019, to allow the addition of beer and wine
service. The business currently operates under an Off-Premises Tasting Room
Spirits License connected to its distillery operations at 2217 Lemuel Street in
Muskegon.
The requested amendment would allow Wonderland Distilling to expand its
current offerings to include beer and wine service in addition to its existing
cocktail menu. According to the applicant, this is not a new liquor license



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                                                                               Page 55 of 209
request, but rather an extension of the previously approved license already
associated with the business’s manufacturing operations.
The applicant has indicated they are aware of and intend to satisfy all
applicable Michigan Liquor Control Commission (MLCC) requirements
associated with the license request. The applicant has indicated the facility has
already received approvals from the County Health Department and MDARD
(Michigan Department of Agriculture and Rural Development) .
Approval of the Local Government Approval form would authorize the City
Clerk to sign the required documentation for submission to the State of
Michigan and the MLCC.
STAFF RECOMMENDATION: I move to approve the liquor license amendment
request for Wonderland Distilling Company located at 1989 Lakeshore Drive,
Suite B, and authorize the City Clerk to sign the required Local Government
Approval documentation.

Motion by Commissioner German, second by Commissioner Kilgo, to approve
the liquor license amendment request for Wonderland Distilling Company
located at 1989 Lakeshore Drive, Suite B, and authorize the City Clerk to sign
the required Local Government Approval documentation.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Jackson, Kochin, and
           St.Clair
           Nays: None
MOTION PASSES

    I. Contract for Housing Exemption - Jackson Hill Estates Economic
       Development
The PILOT for Jackson Hill Estates is expiring in March of 2027, and General
Capital is requesting a 10-year extension.
The Village at Jackson Hill is a longtime senior housing LIHTC in the community
that features some of the lowest rents per square foot in the metro area. In
March of 2027, the 25-year affordability period will expire, which places the
community on the regular tax rolls. General Capital is requesting a 10-year
extension with a 4% PILOT as currently applies to the site. They have recently
been awarded a Weatherization Program Grant from Mid Michigan
Community Action in order to perform capital improvements to the units such
as new windows and other energy efficiency improvements. The current PILOT
payment is roughly 13-14,000 dollars per year.
The site will de facto revert to market rate, unsubsidized units in the event of an
expiration of the PILOT and so staff recommends approval of the extension.
STAFF RECOMMENDATION: Motion to approve the Contract for Housing




                                  Page 10 of 13

                                                                                 Page 56 of 209
Exemption as presented, and to authorize the Mayor and Clerk to sign.

Motion by Commissioner German, second by Commissioner Kilgo, to approve
the Contract for Housing Exemption as presented, and to authorize the Mayor
and Clerk to sign.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, Kochin, St.Clair, and
           Johnson
           Nays: None
MOTION PASSES

   J. Recognizing June as Pride Month Mayor's Office
June is Pride Month; the resolution is offered as a way to acknowledge Pride
Month and the LGBTQ+ community. The resolution notes that the Pride Flag will
be flown at Hackley Park during Pride Month and that a Pride Display can be
done at City Hall.
STAFF RECOMMENDATION: To approve the resolution as presented, fly the Pride
Flag at Hackley Park during Pride Month, and support a Pride display at City
Hall.

Motion by Commissioner Kochin, second by Commissioner St.Clair, to approve
the resolution as presented, fly the Pride Flag at Muskegon City Hall and
Hackley Park during Pride Month, and support a Pride display at City Hall.
ROLL VOTE: Ayes: Keener, German, Jackson, Kochin, St.Clair, Johnson, and
           Kilgo
           Nays: None
MOTION PASSES


2026-40 NEW BUSINESS
   A. Rad Dads Agreement — Discussion REMOVED PER REQUEST OF
      STAFF Manager's Office
   B. Amendment to Chapter 82 of the Code of Ordinances - Affordable
      Housing Economic Development
Updates to the Code of Ordinances to reflect changes to the MSHDA Act and
more easily facilitate infill housing.
With the new programming available from the State of Michigan that has been
empowered by updates to the MSHDA Act, we have been able to facilitate
many infill housing units with pricing controls. Examples include Housing TIF,
Workforce PILOT, and nearly 300 units of LIHTC apartment housing. We are rare



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                                                                           Page 57 of 209
in the sense that we have adopted regulations around allowing affordable
housing in our code of ordinances, which makes the local policy environment
attractive for investment.
However, with all of these recent changes to the State Act, we need to update
our code of ordinances to make sure that our local law acts in concert with
State Law. The proposed update to the ordinance covers all bases for the
current affordable housing types in Michigan and sets us up to continue our
momentum in this development space.
STAFF RECOMMENDATION: Motion to adopt the Amendment to Chapter 82 of
the General Code of Ordinances as presented.

Motion by Commissioner St.Clair, second by Commissioner Kochin, to adopt
the Amendment to Chapter 82 of the General Code of Ordinances as
presented.
ROLL VOTE: Ayes: German, Jackson, Kochin, St.Clair, Johnson, Kilgo, and
           Keener
           Nays: None
MOTION PASSES

ANY OTHER BUSINESS
Economic Development Director Jake Eckholm gave an update on the
marketing of the Nelson House.
Commissioner Kilgo stated there is a three-week Financial Empowerment Series
June 15, June 22, and June 29 at Access Health.
City Manager Jonathan Seyferth gave an update on the fire at the Village at
The Oaks.

GENERAL PUBLIC COMMENT
Public comments received.

2026-41 CLOSED SESSION
   A. Attorney/Client Communication City Clerk
Motion by Commissioner St.Clair, second by Commissioner Kilgo, to go into
Closed Session to consider material exempt from discussion or disclosure under
State or Federal Statute being an attorney/client communication.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
           Jackson
           Nays: None
MOTION PASSES



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                                                                           Page 58 of 209
Motion by Commissioner Kilgo, second by Vice Mayor Keener, to come out of
Closed Session.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, St.Clair, and Johnson
           Nays: None
MOTION PASSES

Motion by Vice Mayor Keener, second by Commissioner St.Clair, to approve
the settlement offer as discussed.
ROLL VOTE: Ayes: Keener, German, Jackson, St.Clair, Johnson, and Kilgo
           Nays: None
MOTION PASSES


ADJOURNMENT
The City Commission meeting adjourned at 9:17 p.m.




                                    Respectfully Submitted,



                                    Ann Marie Meisch, MMC City Clerk




                               Page 13 of 13

                                                                           Page 59 of 209
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026               Title: Financial Policies

Submitted by: Kenneth Grant, Finance Director       Department: Finance

Brief Summary:
To update the City of Muskegon Financial Policies

Detailed Summary & Background:
Key changes to the financial policies:

    • Proceeds from Sale of City-Owned Real Estate goes towards the Housing Fund not the Public
      Improvement Fund
    • Updated Travel Expense Reimbursement & Meal Costs
    • Coin Acceptance Language (New)
    • Updated Poverty Exemption Guidelines for the Assessor


Goal/Action Item:

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                   Budgeted Item:
                                                    Yes              No         N/A

Fund(s) or Account(s):                              Budget Amendment Needed:
                                                    Yes              No         N/A

Recommended Motion:
Staff recommends the approval of the updated Financial Policies as presented to the Commission.

Approvals:                                          Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication



                                                                                          Page 60 of 209
Legal Review




               Page 61 of 209
FINANCIAL POLICIES




             DATE: 1/2026




                      Page 62 of 209
PURPOSE/OVERVIEW: FINANCIAL POLICIES

CONTACTS:
For assistance with your needs, please contact the Department at 231-724-6932. For assistance with the
associated process and application, please contact the Department at 231-724-6932.




                                                                                               Page 63 of 209
           CITY OF MUSKEGON FINANCIAL POLICIES
INTRODUCTION                                                                  2

I. OPERATING BUDGET POLICY                                                    2

II. CAPITAL IMPROVEMENTS POLICY                                               3

III. REVENUE POLICY                                                           3

IV. FUND BALANCE POLICY INCLUDING GASB STATEMENT 54 POLICIES                  3

V. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICY                       5

VI. DEBT POLICY                                                               6

VII. FIXED ASSETS CAPITALIZATION AND DEPRECIATION POLICY                      7

VIII. LIABILITY INSURANCE CLAIM SETTLEMENTS                                   7

IX. POLICY FOR ADJUSTING UNCOLLECTIBLE ACCOUNTS                               8

X. POLICY FOR ADJUSTING DELINQUENT REAL & PERSONAL PROPERTY TAXES             8

XI. INVESTMENT POLICY                                                         9

XII. PETTY CASH USES AND LIMITS                                              11

XIII. PROCEEDS FROM SALE OF CITY-OWNED REAL ESTATE                           11

XIV. PROCUREMENT CARD PROGRAM POLICY                                         12

XV. ELECTRONIC PAYMENTS                                                      14

XVI. ACCEPTANCE OF CREDIT CARD PAYMENTS                                      14

XVII. TRAVEL POLICY AND GUIDELINES                                           14

XVIII. CELL PHONE POLICY                                                     16

XIX. CASH HANDLING POLICY FOR DEPARTMENTS ACCEPTING PAYMENTS FROM CITIZENS   17

XX. ACCOUNTS PAYABLE                                                         18

XXI. ACCOUNTS RECEIVABLE AND BANKRUPTCY                                      18

XXII. PAYROLL                                                                20

XXIII. SOCIAL SECURITY NUMBER PRIVACY POLICY                                 20

XXIV. WATER AND SEWER POLICIES                                               23

XXV. PROPERTY TAX POLICIES                                                   26

XXVI. POVERTY EXEMPTION INCOME GUIDELINES                                    26

XXVII. INCOME TAX POLICIES                                                   26




                                                                                  Page 64 of 209
INTRODUCTION
The financial policies presented here set forth the basic policy framework for the financial
management of the City of Muskegon. Many of the policies represent long-standing principles,
practices, or traditions that have guided the City in the past. They have been brought together in
one place to ensure their consistency and to provide Commission and staff a comprehensive
reference document for current and future decision-making. While these policies are intended to
provide continuity within a constantly changing environment, it is also intended that they be
reviewed regularly and amended as needed.


I. OPERATING BUDGET POLICY
The City shall adhere to the requirements of the State of Michigan “Uniform Budget Act” (P.A. 621
of 1978, as amended).
The budget shall be balanced by Fund. Budgeted expenditures of each fund will be less than or
equal to the sum of projected fund balance at the beginning of the fiscal year and all revenues
which reasonably can be expected to be received during the fiscal year. It will be the annual goal
of the City to match current operating expenditures with current operating revenues for each fund.
Where this is not possible due to economic downturn or other factors, the “operating deficit” (i.e.
operating revenues less operating expenditures) will be clearly highlighted.
Budgets will be adopted on a basis of accounting consistent with generally accepted accounting
principles. Revenues are budgeted when they become measurable and available and expenditures
are charged against the budget when they become measurable, a liability has been incurred, and
the liability will be liquidated with current resources.
The budget shall be adopted through a “Resolution of Appropriation.” Appropriations will be made
at the departmental or project level for the General Fund Budget and at the fund level for all other
budgets. The level of formal appropriation will constitute the “appropriation center” for each fund
as defined in the state Uniform Budget Act. Transfers of budgeted funds between appropriation
centers will require the formal approval of the City Commission.
The City Manager and City Department Heads are authorized to transfer line-item budget amounts
within appropriation centers. Budget transfers between appropriation centers or changes to
appropriation center totals require formal amendment by the City Commission, which may be done
at any time during the budget year.
Budgets will be carefully monitored throughout the year. Each quarter the budget together with the
policies and priorities on which it is based will be thoroughly reviewed by the City Manager to
determine whether changes are necessary. An amended budget reforecast will be presented to
the City Commission based on this review.
Department Heads are authorized to reallocate budgeted positions between activities under their
jurisdiction; however, new positions may only be created with approval of the City Manager and
within the budgetary authority approved by the City Commission.
All operating funds of the City are subject to the annual budget process and will be reflected in the
annual budget document with the exception of certain “pass-through” funds (such as the current
tax fund), trust and agency funds, funds having a separate fiscal year (e.g. CDBG), and non-
recurring project and grant funds for which a budget shall be adopted at the time the project is
approved.
The enterprise fund and internal service fund operations of the City are intended to be fully self-
supporting, i.e. current revenues will cover current expenditures, debt service, and capital costs.
The City’s budget will portray both direct and indirect costs of programs whenever practical.
As permitted by state law (P.A. 30 of 1978), the City will fund and maintain a separate Budget
Stabilization Fund for the purpose of ensuring that adequate funding is available to maintain levels
of municipal services in the event of a major revenue loss.




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                                                                                                        Page 65 of 209
II. CAPITAL IMPROVEMENTS POLICY
A capital improvement program (CIP) will be developed for a period of five years. The CIP will
outline and prioritize all proposed capital projects, including land acquisitions, land improvements,
construction projects and equipment purchases having estimated costs over $50,000 and useful
lives of four or more years. As resources are available, the most current year of the CIP will be
incorporated into the current year of the City’s operating budget. The CIP will be reviewed and
updated annually prior to the beginning of the operating budget cycle.


III. REVENUE POLICY
The City will strive to maintain a diversified and stable revenue system to shelter it from short-run
fluctuations in any one revenue source. The revenue mix should combine elastic and inelastic
revenue sources to minimize the effect of an economic downturn.
The City will estimate its annual revenues using the best information available.
The City will establish all user charges at a level related to the cost of providing the services and
will annually revise user fees (with review by the City Commission) to adjust for the effects of
inflation, program changes or other factors.
The City will set fees and user charges for each enterprise fund, such as the Water Fund and Sewer
Fund, at a level that fully supports the total direct and indirect costs of the activity. Costs shall
include the cost of annual depreciation of capital assets.
The City will set fees for other user activities, such as recreation services, at a level to support the
direct and appropriate indirect costs of the activity.
The City will aggressively pursue collections of delinquent accounts receivable utilizing appropriate
legal means (including outside collection agents) to enforce payment of amounts owed.


IV. FUND BALANCE POLICY INCLUDING GASB STATEMENT 54 POLICIES
Fund balance is an important indicator of the City’s financial position. Maintaining reserves is
considered a prudent management practice. Adequate fund balances are maintained to allow the
City to continue providing services to the community in case of unexpected emergencies or
requirements and/or economic downturns.


GENERAL FUND
It will be the City’s policy to maintain an unassigned (General Fund) fund balance equal to at least
thirteen percent (13%) of total actual General Fund Revenues for the preceding year. This level of
fund balance is consistent with the municipal fiscal stress indicator system used by the Michigan
Department of Treasury to monitor the financial health of local units.


FUND BALANCE REPORTING IN GOVERNMENTAL FUNDS
Fund balance will be reported in governmental funds under the following categories using the
definitions provided by GASB Statement No. 54:

Nonspendable fund balance – includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained in-tact.

Nonspendable amounts will be determined before all other classifications and consist of the
following items (as applicable in any given fiscal year):

     The City will maintain a fund balance equal to the balance of any long-term outstanding
        balances due from others (including other funds of the government)




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                                                                                                           Page 66 of 209
     The City will maintain a fund balance equal to the value of inventory balances and prepaid
        items

     The City will maintain a fund balance equal to the corpus (principal) of any permanent funds
        that are legally or contractually required to be maintained in-tact

     The City will maintain a fund balance equal to the balance of any land or other nonfinancial
        assets held for sale

Restricted fund balance – includes amounts that can be spent only for the specific purposes
stipulated by the constitution, external resource providers, or through enabling legislation.

Committed fund balance – includes amounts that can be used only for the specific purposes
determined by a formal action of the government’s highest level of decision-making authority.

Commitments will only be used for specific purposes pursuant to a formal action of the City
Commission.

Assigned fund balance – includes amounts intended to be used by the government for specific
purposes but do not meet the criteria to be classified as restricted or committed. In governmental
funds other than the general fund, assigned fund balance represents the remaining amount that is
not restricted or committed.

The City Commission delegates to the City Manager the authority to assign amounts to be used for
specific purposes. Such assignments cannot exceed the available (spendable, unrestricted,
uncommitted) fund balance in any particular fund.

Unassigned fund balance – includes the residual classification for the government’s general
fund and includes all spendable amounts not contained in the other classifications. In other funds,
the unassigned classification should be used only to report a deficit balance from overspending
for specific purposes for which amounts had been restricted, committed, or assigned.


BUDGET STABILIZATION FUND
The City will continue to maintain on its books a budget stabilization fund (as originally created
under PA 30 of 1978). However, for year-end reporting purposes (in accordance with requirements
of GASB 54), the City’s budget stabilization fund will be reported as an assigned fund balance of
the general fund for the purpose of public improvements.
.


V. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICY
The City will establish and maintain those funds required by law and sound financial administration.
Only the minimum number of funds consistent with legal and operating requirements will be
established, however, because unnecessary funds result in inflexibility, undue complexity, and
inefficient financial administration.
An independent full scope audit of all City funds will be performed on an annual basis. Selection
of the independent auditor will be made by the City Commission.
The City will prepare an Annual Comprehensive Financial Report (ACFR) in accordance with
Generally Accepted Accounted Principles (GAAP) as outlined by the Governmental Accounting
Standards Board (GASB). It will be the City’s goal to complete the annual audit and prepare the
ACFR within 120 days of the end of the fiscal year.




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                                                                                                       Page 67 of 209
The City shall submit annually its ACFR to the Certificate of Achievement for Excellence in Financial
Reporting Program sponsored by the Government Finance Officers Association.
Recommendations made by GFOA reviewers shall be incorporated into the City’s ACFR for the
subsequent year.


VI. DEBT POLICY

EXTERNAL DEBT
The City of Muskegon will not use long-term debt to finance current operations.
The City of Muskegon will follow a policy of full disclosure and report all material facts about its
financial condition in a timely manner.
The retirement of bonds issued by the City (or its component units and authorities) will be equal to
or less than the useful life of the project being funded.
Whenever possible the City of Muskegon (including its authorities) will limit its issuance of debt to
a maximum of $10 million per calendar year to maintain the yield advantages associated with bank
qualified obligations.
The City will structure bond issues to maintain level or decreasing debt service schedules and
maintain debt service payments as a predictable and manageable part of the operating budget.
“Pay-As-You-Go” financing will be used when practical. However, when the City utilizes long-
term debt financing it will ensure that the debt is financed soundly by:
       Conservatively projecting revenue sources that will be utilized to repay the debt.
       Financing the improvement over a period not greater than the useful life of the
        improvement, and
       Determining that the benefits to be derived outweigh the total costs (including interest
        costs) of the project.
Capital lease, certificates of participation, and lease-purchase financing will be treated as debt
financing and be subject to the same policies.
The City will award sale of its bonds to the responsible bidder whose bid produces the lowest
“true interest cost” (TIC) to the City over the life of the bond issue.
The City (and its Authorities) will normally issue debt through a competitive process in which formal
bids will be solicited from as many interested parties as possible. Under some circumstances, it is
in the City’s best interest to issue debt through a negotiated sale process instead of using a
competitive process. The negotiated sale process will only be used when: 1) the nature of the debt
issue is unique and requires particular skills from the investment banks involved, 2) the interest rate
environment or other economic factors that may affect the issue are particularly volatile and the
negotiated sale process can provide needed stability or, 3) the debt issue is bound by a closing
deadline. In all cases where the negotiated process is utilized, the underwriter/manager will be
selected by a competitive review of their fees, qualifications, and recent performance.


INTERFUND LOANS
In some situations it may be cost effective to loan money from one City fund to another in lieu of
borrowing from external sources. Such interfund loans may only be made with formal approval of
the City Commission including establishment of a fixed repayment schedule. Interest on interfund
loans will be charged at the rate then available on U.S. Treasury notes having a comparable
maturity.




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VII. FIXED ASSETS CAPITALIZATION AND DEPRECIATION POLICY

CAPITALIZATION THRESHOLDS
Fixed assets are assets of a long-term character (i.e. a minimum useful life of two years) which are
intended to continue to be held and used, such as land, buildings, improvements other than
buildings, machinery, vehicles and equipment. This policy is intended to establish guidelines for
accounting for, capitalizing and depreciating fixed assets held by the various City funds.

Category Capitalization Threshold (Unit Cost)
Land $ N/A
Land Improvement 10,000
Buildings 10,000
Equipment 10,000
Vehicles 10,000
Office Equipment and Furniture 10,000


Only those items having unit costs in excess of the threshold limits specified above will be
considered fixed assets for purposes of City accounting records. Fixed assets in the City’s
proprietary type funds (i.e. Enterprise, Internal Service) shall be capitalized in the year of purchase
and depreciated over their estimated useful lives. Fixed assets of all other funds shall be
maintained by the City and depreciated over their estimated useful lives and shown on the City’s
full accrual Government Wide Statement. These include certain public domain general fixed assets
consisting of improvements such as roads, bridges, curbs and gutters, streets and sidewalks,
drainage systems, and lighting systems.
General fixed assets are valued at historical cost or estimated historical cost if actual cost is not
available. Donated assets are valued at their estimated fair value on the date donated. Property
and equipment of the enterprise funds and internal service funds are carried at cost.


DEPRECIATION AND ESTIMATED USEFUL LIFE
Depreciation of Fixed Assets in the City’s Proprietary Funds shall be accomplished using the simple
straight life method. The estimated useful life of assets will be based on IRS policies, past
experience, or other reliable sources. Useful lives typically will not exceed fifty (50) years.


VIII. LIABILITY INSURANCE CLAIM SETTLEMENTS
Under the Michigan Municipal Risk Management Authority (MMRMA) program the City is self-
insured for the first $150,000 of any single liability claim. A portion of the City’s annual “premium”
paid to MMRMA is set aside in a reserve account to cover this retained risk and no disbursement
can be made from this reserve without prior authorization from the City.
When a claim is made against the City, all pertinent information is turned over to MMRMA. The
“claims adjusting” section of MMRMA then investigates the claim thoroughly and recommends a
course of action to the City (e.g. deny claim, settle for no more than X dollars, etc.).
The following policy will govern the handling of such liability claims:
       The City Manager or the Finance Director is authorized to approve settlements up to
        $15,000 provided that the settlement is consistent with the recommendation of the
        MMRMA.
       Settlements for amounts less than $15,000 which are not consistent with the
        recommendation of MMRMA may only be authorized with concurrence of the City Attorney
        and timely notification of the City Commission.




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                                                                                                          Page 69 of 209
       Proposed claim settlements in excess of $15,000 must be reviewed and approved by the
        City Commission.



IX. POLICY FOR ADJUSTING UNCOLLECTIBLE ACCOUNTS
During the normal course of conducting its business, the City invoices outside parties for a variety
of reasons ranging from taxes, fines, or penalties to the sale of City services or goods. Most billings
are paid promptly and the majority of those that are not are ultimately collected through
discontinuance of service, use of third-party collection services, or other means. However, it is
periodically necessary to adjust the City’s receivable records by “writing-off” accounts deemed to
be uncollectible or by making an adjustment to reflect the negotiated settlement of a disputed
account.
The City’s policy for adjusting accounts receivable shall be:
    The City shall maintain in its general ledger records delinquent accounts receivables for the
    five most recent years. A reserve for estimated uncollectible accounts receivable shall be
    maintained in the general ledger. The reserve will be equal to one-half of the fund’s delinquent
    accounts receivable outstanding as of each June 30th. At the close of each fiscal year, the City
    will write-off any balances remaining uncollected that are more than five years old. Accounts
    that are written-off may be turned over to a private collection agency for additional collection
    efforts.
    For receivables under five years old preliminary authorization for adjustments or write-offs of
    individual accounts receivable for amounts not in excess of $15,000.00 may be given by the
    City Manager or other responsible official designated by the City Manager (e.g. the City
    Treasurer in the case of water bills).
    The adjustment or write-off of individual accounts receivable for amounts in excess of
    $15,000.00 shall be approved by the City Commission on an individual basis.
Adjustments to accounts receivable which are determined by the City Treasurer to be necessary
due to administrative error may be made without going through the procedure outlined above.




X.  POLICY FOR                ADJUSTING           DELINQUENT           REAL       & PERSONAL
PROPERTY TAXES
The City’s policy for adjusting delinquent personal property taxes shall be as follows:
       A reserve for estimated uncollectible personal property taxes shall be maintained in each
        fund having delinquent personal property tax receivables. The reserve will be equal to one-
        half of the fund’s delinquent personal property taxes outstanding as of each June 30th.
       The City shall only maintain in its general ledger records delinquent personal property tax
        receivables for the two most recent years in an attempt to comply with the GASB 60-day
        rule. At the close of each fiscal year, the City will write-off any balances remaining
        uncollected that are more than two years old. Balances written off may be turned over to
        a private collection agency for additional collection efforts.
Real property taxes that become delinquent are turned over to the County treasurer for collection.
The City is generally made whole at the outset of the collection process and only “charged back”
for those taxes that remain delinquent after 2-3 years of unsuccessful collection effort. If in the
City’s judgment a delinquent account will ultimately be uncollectible through this process the City
will escrow the funds received from the County to cover an eventually charge back.




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XI. INVESTMENT POLICY
The Director of Finance serves as the City’s Investment Officer as defined in Michigan Compiled
Laws (MCL) Chapter 129.91.

This Investment Policy replaces any previously dated investment policies, guidelines or lists of
authorized investments.

SCOPE
This Policy shall apply to the investment management of all financial assets under control of the
City.
To the extent practical, all excess cash, except for cash in certain restricted and special accounts,
shall be pooled for investment purposes. The investment income derived from the pooled
investment account shall be allocated to the contributing funds based upon the proportion of the
respective average balances relative to the total pooled balance. Interest earnings shall be
distributed to individual funds on a monthly basis.

OBJECTIVES
The City's principal investment objectives are (in order of importance):
   SAFETY: Preservation of capital and protection of investment principal.
   LIQUIDITY: Maintenance of sufficient liquidity to meet anticipated cash flows.
   YIELD: Attainment of a market value rate of return.


PRUDENCE
The standard of prudence to be used for managing the City's assets shall be the “prudent investor
rule” which in general states that investments shall be made with the judgment and care that under
the circumstances then prevailing, persons of prudence, discretion and intelligence would exercise
in the management of their own affairs, not in regard to speculation but in regard to the permanent
disposition of their funds, considering the probable income as well as the probable safety of their
capital.

The City recognizes that no investment is totally risk less and that the investment activities of the
City are a matter of public record. Accordingly, the City recognizes that occasional measured
losses are inevitable in a diversified portfolio and shall be considered within the context of the
overall portfolio's return, provided that adequate diversification has been implemented and that the
sale of a security is in the best long-term interest of the City.

The Director of Finance and authorized investment personnel acting in accordance with written
procedures and exercising due diligence shall be relieved of personal responsibility for an
individual security's credit risk or market price changes, provided that the deviations from
expectations are reported in a timely fashion to the City Commission and appropriate action is
taken to control adverse developments.


DELEGATION OF AUTHORITY
The Director of Finance may delegate the authority to conduct investment transactions and to
manage the operation of the investment portfolio to the Assistant Finance Director and/or the City
Treasurer. No person may engage in an investment transaction except as expressly provided
under the terms of this Investment Policy.

The City may engage the support services of outside professionals in regard to its investment
program, so long as it can be clearly demonstrated that these services produce a net financial
advantage or necessary financial protection of the City's financial resources.




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AUTHORIZED SECURITIES AND TRANSACTIONS
All investments of the City shall be made in accordance with MCL Chapter 129.91 - 129.96 (Act
20 of 1943). Any revisions or extensions of these sections of MCL will be deemed to be part of
this Investment Policy immediately upon being enacted.


INVESTMENT DIVERSIFICATION AND LIQUIDITY
It is the intent of the City to diversify the investments within the portfolio to avoid incurring
unreasonable risks inherent in over investing in specific instruments, individual financial institutions
or maturities. The maximum investment in each of the following categories shall not exceed 25%
of the total portfolio: Commercial Paper, Eligible Bankers Acceptances and uninsured Certificates
of Deposit.

To the extent possible, investments shall be matched with anticipated cash flow requirements and
known future liabilities. The City shall maintain at least 10% of its total portfolio in cash and/or
instruments maturing in 30 days or less.


SELECTION OF BROKER/DEALERS
Broker/dealers will be selected by the Director of Finance on the basis of their expertise in public
cash management and their ability to provide services for the City's account. Approved
broker/dealers and the firms they represent shall be licensed to do business in the State of Michigan
and as such are subject to the provisions of Michigan Statutes relating to the investment of public
funds. Broker/dealers shall attest in writing that they have received and reviewed a copy of this
Policy.

The City may purchase commercial paper, CD’s and other securities from direct issuers as long as
they meet the criteria outlined in the Authorized Securities and Transactions section of this Policy.


SELECTION OF DEPOSITORY BANKS
Periodically, through a Request for Proposal process, the City shall select a bank or credit union to
provide checking account and other banking services for the City. To be eligible for authorization,
a bank or credit union must (1) be a member of the FDIC or NCUA, (2) be eligible to be a depository
of funds belonging to the State of Michigan and, (3) be financially stable and sound as periodically
determine through credit analysis provided through a reputable bank rating service.

Time Certificates of Deposit described in the section of this policy, “Authorized Securities and
Transactions” may be purchased from authorized banks if they meet requirements of Act 20.



SAFEKEEPING AND CUSTODY
The Director of Finance shall select a bank to provide safekeeping and custodial services for the
City. The custodian bank will be selected on the basis of its ability to provide services for the City's
account and the competitive pricing of its safekeeping related services, and shall be financially
stable and sound as periodically determined through credit analysis provided through a reputable
bank rating service.

The Director of Finance shall maintain a file of the credit rating analysis reports performed for the
custodian bank. Bank credit analysis shall be performed on a semi-annual basis.




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REPORTING
Accounting and reporting on the City’s investment portfolio shall conform to Generally Accepted
Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB)
recommended practices. On a quarterly basis, the Director of Finance shall submit to the City
Commission an investment report, listing the investments held by the City, the current market
valuation of the investments and performance results. The report shall include a summary of
investment earnings during the period.


XII. PETTY CASH USES AND LIMITS
Petty cash accounts may be established in such locations and in such amounts as may be
determined necessary by the City Manager. Petty cash disbursements up to $300.00 are permitted
for the following purposes: 1) for the expedited purchase of minor goods or services, 2) to provide
immediate reimbursement to employees for travel or other costs paid out of their own pocket in the
conduct of City business and, 3) to provide immediate refunds to customers as warranted. All uses
of petty cash must be fully supported by receipts or other appropriate documentation. Petty cash
procedures shall be reviewed periodically by the City’s Finance Department.
Employees traveling on City business may receive a petty cash travel advance of up to $300.00
from the City Treasurer’s Office to be used for travel purposes. The employee’s department head
must approve travel advances. Cash advances of more than $300.00 are discouraged and will
only be made upon written authorization of the employee’s department head and the City
manager.
Note that all travel expenses should be reported on the Travel Expense Reporting Form as soon
as possible upon returning from travel. Travel Expense Reporting Forms are available on the City’s
Intranet Page.


XIII. PROCEEDS FROM SALE OF CITY-OWNED REAL ESTATE
From time to time the City sells real estate that it owns. It is City policy that, unless required by law
or by specific direction of the City Commission, proceeds from such property sales shall be
deposited to the City’s Public Improvement Fund to be used to finance general purpose capital
needs.
In the case of tax reverted property sold by the City, sale proceeds will first be used to reimburse
appropriate City funds for expenses incurred in maintaining and selling the property. Any remaining
sale proceeds will be distributed to the City and other taxing jurisdictions in the same manner as
regular property taxes.
In instances where the specific property sold is a part of the City’s Infill Housing Program, proceeds
from the sale of the property shall be retained in the City’s Infill Housing Program Fund, so as to
further continue the program.




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XIV. PROCUREMENT CARD PROGRAM POLICY

GENERAL
Regular government purchasing methods, such as purchase orders, can be cumbersome and
costly in relation to the value of goods being purchased. To promote operational efficiency, the City
has adopted a procurement card purchasing program for use with small dollar value purchases.
A number of unique controls have been developed for the procurement card program. These
controls will ensure that cards can be used only for specific purchases and within specific dollar
limits. In addition, documentation of all purchases is required by each cardholder with further
approval from the department head and the City Manager’s office before payment is made.
The unique procurement card issued by the City has the employee’s name embossed on it together
with the City’s tax-exempt status. No one other than the employee whose name is on the card
may use the card. CITY ISSUED PROCUREMENT CARDS MAY ONLY BE USED BY
DESIGNATED CITY EMPLOYEES FOR THE PURCHASE OF GOODS OR SERVICES FOR THE
OFFICIAL BUSINESS OF THE CITY OF MUSKEGON. UNDER NO CIRCUMSTANCES IS THE
PROCUREMENT CARD TO BE USED FOR PERSONAL PURCHASES.


DESIGNATION OF RESPONSIBLE OFFICIAL
The Finance Director is designated as the official responsible for overseeing compliance with this
procurement card policy including procurement card issuance, accounting for procurement card
transactions, monitoring and payment of procurement card statements.


TRANSACTION AMOUNTS
The procurement card may be used for purchases of individual items up to $2,500.00 in value. The
total monthly dollar value of transactions on each procurement card will generally be limited to
$5,000.00. The City Manager or Finance Director may establish higher monthly credit limits for
employees whose positions require higher than normal use of the procurement card. The total
combined authorized credit limit of all procurement cards issued by the City shall not exceed five
percent of the City’s total budget for the current year. All purchases made with a City procurement
card must be fully supported by receipts, invoices, and other documentation. Such documentation
is to be attached to the monthly procurement card statement and cardholder’s reconciliation.


CREDIT CARD REBATES/REWARDS
To the extent the City earns rebates or rewards from use of procurement cards, the rebates will be
recorded as general fund income used to offset the costs of bank service charges.


CREDIT CARD USE FOR LARGE RECURRING ITEMS
Some vendors accept credit card payment for large recurring bills such as electric bills and solid
waste collection. Since the City can earn rebates on credit card use, it may be to the City’s benefit
to pay these bills via credit card. The City manager and/or finance director will inform the City
commission of these opportunities in advance and will establish special use credit card accounts
that are electronically restricted to the specific type of transaction/vendor.




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EMERGENCY TRANSACTION AMOUNTS
In the event of an extended emergency, the City Manager or Finance Director is authorized to
establish higher procurement card limits on a temporary basis so that City employees may procure
goods and services necessary to deal with the emergency. In no event are emergency transaction
limits to be in effect for more than thirty days.


INTEREST COSTS AND SALES TAX
It is the City’s policy to pay in full each month on or before the due date the total balance due on its
procurement cards thereby avoiding interest charges. As a municipality, the City is exempt from
payment of state sales tax. City procurement card users are expected to exercise care in
conducting transactions to ensure that they are not incorrectly charged for sales tax.


OTHER PURCHASING POLICIES
The procurement card is a supplement to other purchasing procedures such as purchase orders.
As with the other purchasing methods, the following conditions must be met when using your
procurement card.
       Each single purchase may be comprised of multiple items, but the total cannot exceed
        the single purchase dollar limit on your procurement card.
       When purchases exceed the established dollar limits, the normal procedures of using
        purchase orders must be followed unless written authorization is given by the employee’s
        department head.
       The least expensive item that meets your basic needs should be bought and competitive
        quotes must be obtained in accordance with existing purchasing policies.
       Cardholders must follow normal budgetary control procedures to ensure that sufficient
        funds are available prior to making purchase.
       Use of the procurement card does not relieve the cardholder from complying with
        Federal, State and City ordinances, regulations, policies and procedures.
       Use of the procurement card is not intended to replace effective procurement planning
        which enable volume discounts.
       Purchases are not to be split to circumvent procurement regulations.


RESTRICTIONS ON USE
The following list covers purchases for which procurement cards use is prohibited:
       Cash advances through bank tellers or teller machines.
       Traveler’s Checks.
       Purchase of gasoline or diesel fuel for City vehicles except in emergencies (use City
        pumps or authorized fuel system).
       Purchase of items stocked in City inventory unless required in emergencies.
       Additional specific restrictions as deemed necessary by individual departments.




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XV. ELECTRONIC PAYMENTS
Modern technology makes it possible to transfer funds electronically in lieu of issuing paper checks.
This technology offers many benefits to users including lower transaction costs, reduced
opportunities for fraud, and better cash management control. The City has effectively utilized this
technology for several years for purposes such as direct deposit of employee paychecks and
automatic payment of customers’ water bills. The City supports continued use and expansion of
electronic payments technology for payment of vendors and other uses provided appropriate
internal controls are established. The City Manager and Finance Director, in conjunction with the
City’s independent auditors, are authorized to develop the necessary procedures and controls for
expanded use of this technology in the City of Muskegon.


XVI. ACCEPTANCE OF CREDIT CARD PAYMENTS
The City has studied the costs and benefits of accepting credit card payments from customers and
has determined that credit card acceptance significantly enhances customer service and provides
administrative and other benefits to the City. Accordingly, the City’s policy shall be to accept credit
cards for payment of all City bills and invoices with any associated processing fees passed on to
the customer. Utility customers that are signed up for automatic payments initiated by the City
using a credit card will not be charged processing fees.



XVII. TRAVEL POLICY AND GUIDELINES

SCOPE
This policy applies to all City of Muskegon elected officials, employees, board members, volunteers
and others when travelling on official City business and/or travelling at City expense.

AUTHORIZED TRAVEL
In the normal course of conducting City business, employees are required to travel for purposes of
work-related meetings, training opportunities, professional conferences, or other business
purposes. As part of the annual budget process, departments’ request funding for travel purposes
for the coming year. Department heads have full authority to approve travel for their employees
(without additional authorization) within limits of the department's approved travel budget. Travel
that is significantly beyond the parameters of the department's travel budget should be approved
by the City Manager together with a corresponding budget adjustment if required.

TRAVEL COSTS
The City recognizes that its employees are responsible adults who take the same care in incurring
travel expenses while on City business as when traveling on personal business. Accordingly, this
policy does not establish rigid cost limits for lodging, meals, or other travel costs. Instead, the
following general guidelines are offered while recognizing that special circumstances may dictate
that employees incur costs beyond these guidelines:

Lodging - Lodging costs should generally range between $100.00 - $250.00 per night depending
on location (based on single occupancy and including local taxes which the City is not exempt
from). Employees are relied upon to use their good judgment in selecting safe and economical
accommodations.

Two important factors to remember when making hotel reservations: 1) you should always ask for
special "government" rates that are typically deeply discounted from regular rates and, 2) you
should identify the travel as official City business exempt from state sales tax and inquire as to any
specific documentation requirements the hotel may have.




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Costs for in-room movies, exercise rooms, or other hotel services not included in the basic room
rate are not reimbursable by the City.

Meals - Meal costs should generally not exceed $62.00 per person for each full day of travel
(including gratuities and taxes). For partial day travel or individual meal reimbursements, the
following limits will apply:

 Breakfast                  $15.00                           Travel Before 8:00 AM
 Lunch                      $17.00                          Travel Before 12:00 Noon
 Dinner                     $30.00                           Travel Before 6:00 PM

Individual meal limits will apply regardless of whether or not reimbursement is sought for other
meals during the day. For example, it is not permissible to “skip” breakfast and lunch in order to be
reimbursed $62.00 for a dinner; instead, the dinner will only be reimbursed up to the $30.00 limit
specified above. Often lunch or other meals are included in the registration price of a seminar or
conference. It is expected that employees attending these functions will partake in these meals.
The City will not reimburse meal costs if the employee chooses to forgo the conference meal and
dine elsewhere.

Transportation - Vehicle travel may be by either City vehicle or the employee's private vehicle. If a
private vehicle is used, reimbursement will be based on the number of miles traveled times the
allowable IRS business mileage rate in effect at that time. Air travel is generally used for
destinations more than 300 miles away. Employees are encouraged to take advantage of
discounted airfares and should utilize the Muskegon County Airport whenever possible.

Employees may elect to use private vehicles for travel to destinations more than 300 miles away
and will be reimbursed based on the current IRS mileage rate or equivalent round trip coach airfare
for that destination, whichever is less. However, no reimbursement will be made for added lodging
or meal costs incurred because of the extra travel time.

Employees who elect to use their own vehicle should be aware that under the laws of the State of
Michigan, every vehicle owner is required purchase insurance that is the primary coverage for that
vehicle. While using a private vehicle for City travel, any automobile liability insurance coverage in
force for the City is excess coverage only for the employee/vehicle owner.

Other Costs - Other incidental costs (such as parking and ground transport), should not exceed an
average of $50.00 per day. Rental car costs generally will not be reimbursed by the City as it is
expected that employees will utilize lodging in close proximity to the conference or other event. In
extraordinary circumstances where the employee deems it necessary to rent a car, reimbursement
will only be made with the written authorization of the City Manager.

Traveling With Spouse - There is no objection to employees inviting their spouse to travel along on
City business. However, the City will pay for none of the spouse’s travel expenses and care should
be taken to maintain separate records of the employee's reimbursable travel costs.

PAYING FOR TRAVEL COSTS
Methods available for employees to pay travel costs include the following:

City Credit Card - Employees who have been issued a City of Muskegon credit card should use it
to pay their travel costs. Additionally, in each department a credit card holder is designated to use
their card to pay for other employees' travel costs that can be readily handled in advance (e.g.
airline tickets, conference registration, hotel, etc.).

Personal Credit Card - Employees who have not been issued a City credit card may find it
convenient to pay travel costs on their own personal credit card and receive cash reimbursement
from the City.



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Note that all travel expenses should be reported on the Travel Expense Reporting Form as soon
as possible upon returning from travel. Travel Expense Reporting Forms are available on the City’s
Intranet Page.


REPORTING REQUIREMENTS FOR TRAVEL EXPENSE REIMBURSEMENT
Travel expense reporting has been simplified to the extent possible. The following guidelines apply
to travel expense reporting:

   Travel expenses are to be reported on the Travel Expense Reporting Form included with this
    pamphlet as soon as possible upon returning from travel.
   Only expenses for which cash reimbursement is sought by the employee need to be reported.
    Expenses paid in advance or expenses paid by City credit card should not be included on the
    Travel Expense Reporting Form.
   Expenses must always be supported by receipts or other documentation.
   If total expenses to be reimbursed are $300.00 or less, you may obtain immediate
    reimbursement from the City Treasurer's Office.
   If total expenses to be reimbursed are more than $300.00, they will be reimbursed as a
    separately itemized, non-taxable category on the employee's regular bi-weekly paycheck.
    Accordingly, travel expense report forms must be submitted to the Finance Office with all
    necessary approvals no later than 5:00PM on the Friday prior to payday for reimbursement on
    that paycheck.


DOUBLE-DIPPING
It should go without saying that City expects honest and ethical behavior from its employees in
handling travel expense matters. Travel expenses that are partially or fully paid by outside parties
(such as federal agencies) are not to also be submitted for reimbursement from the City. Any
employee found to be deliberately misreporting travel expenses will be subject to disciplinary
action, up to and including termination, as well as potential prosecution.


LOCAL BUSINESS EXPENSES
In addition to travel expenses, it is sometimes appropriate for City employees to incur costs on
behalf of boards or committees or in the course of entertaining visiting guests. Department heads
have full authority to approve such costs (within budgetary limits) and the same general guidelines
as outlined above for employee travel expenses should be followed.



XXVIII. CELL PHONE POLICY
GOAL

It is the goal of the City to provide cellular telephones to City employees who need them to
perform the essential functions of their jobs.

SAFETY

The first concern of the City is the safety of their employees and the public. Employees should
use proper safety procedures at all times when using a cellular phone, especially while operating
equipment, driving on City business or performing similar duties. This requires complying with
ALL state and local laws regarding electronic device usage while driving, including Michigan’s




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“Hand’s Free” and distracted driving laws. Text messages under no circumstances should be sent
or viewed while driving.

POLICY

Department Heads and Supervisors may request cellular phones for employee use when the
expense and use of the phone is justifiable in terms of improved service and responsiveness to
citizens and/or other employees. Cellular phones should be provided only when they are
required for the employee to perform essential functions of his/her job. City realizes the phone
will be used for personal use as well as City use however excessive use or abuse of the phone
and/or phone services could result in additional charges or cancellation of phone services.

With approval from the City Manager and Department Head an employee may elect to use
his/her own cellular phone for City business. The phone must be fully available during the
employee’s scheduled work hours. Employees using their personal cellular phone will be
reimbursed per month for the use of their phone. This reimbursement is taxable income to the
employee and the amount will be determined by Finance annually.




XIX. CASH HANDLING POLICY FOR DEPARTMENTS ACCEPTING
PAYMENTS FROM CITIZENS

This policy is intended as a guide and supplement to other measures which should exist
surrounding the collection, timely deposit, and recording of collections in the records at each City
location.

Each City department that processes cash transactions (Treasury, Income Tax, Clerk, Arena,
Marina, DPW, Police, Inspections, Planning, and Farmer’s Market) uses BS&A Cloud to record the
payment using the Cash Receipting application. All cash transactions must be entered into the
BS&A Cash Receipting application and a receipt must be issued to each customer.

City departments handling cash have starting cash, which is used for making change for their
customers. Each City department that processes these transactions must complete a deposit in
BS&A, by using the Drawer Balancing Utility in the Cash Receipting application. This allows the
user to count the cash and verify totals compared to the receipts taken into the system. The receipts
should offset the money (cash, checks, and credit cards) that you have remaining. If this is not
the case, then, you have an overage or a shortage, which needs to be receipted to COS (cash
over/short). Once it is verified and balanced, each department will then bring the Receipt Register
and the funds comprising the deposit to the Treasury Department for posting. The CSRII in the
Treasury will process a department receipt and include the deposited items from that department
with their daily deposit for their individual drawer.

Each Treasury CSRII balances their cash drawer daily. Daily deposit processing is done by using
the BS&A Drawer Balancing Utility to match the amounts of each tender type and the Receipt
Register report to verify the totals. Each Treasury CSRII then gives the cash and receipt register
to the Treasury Services Supervisor to count and verify totals, who then prepares the cash deposit
to be sent to the bank for deposit. Afterwards, the CSRII assigned to doing the overall deposit for
all departments and the Treasury, combines all Treasury CSRII report totals to verify against a
cumulative Receipt Register and Deposit report generated from the BS&A Cash Receipting
application to post all of the receipts for that day.



If assistance is needed in reference to any of the above, please contact the treasurer’s office.



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COIN ACCEPTANCE

State of Michigan MCL(Michigan Compiled Law) 21.153 requires the treasurer to accept United
States silver coins in payment of any debt, taxes or other obligations collectible by the municipality.
Because the statute specifies silver coins, not nickel or copper coins, the treasurer is not required
to accept payment in nickels or pennies. The treasurer can require that the coins be rolled and
wrapped with the name, address, and phone number of the payer on each wrapper.

With regard to the MCL listed above, the City will not accept more than 20 (twenty) coins in payment
of any debts or obligations owed to the City. The City Treasurer or their designee, may waive this
guideline provided the following conditions are met:

     Only one (1) roll of each denomination is accepted or six (one of each) total for pennies,
        nickels, dimes, quarters, half dollars, and dollar coins.
     Coins are wrapped in coin wrappers containing the customer’s name, address, and
        telephone number
     Coins are wrapped in the following categories
            oPennies      $.50 roll wrapper (50 pennies)
            oNickels      $2.00 roll wrapper (40 nickels)
            oDimes       $5.00 roll wrapper (50 dimes)
            oQuarters     $10.00 roll wrapper (40 quarters)
            oHalf Dollars $10.00 roll wrapper (20 half dollars)
            oDollar Coins $25.00 roll wrapper (25 dollar coins)

Shortages or overages in excess of $1.00 will be adjusted to the customer’s account. The City will
not supply coin wrappers to accommodate these transactions.



XX. ACCOUNTS PAYABLE

The City fully recognizes the importance of paying its vendors and suppliers in a timely manner.
Late vendor payments result in higher costs as well as damage to the City’s reputation. Accordingly,
it is City policy to issue accounts payable (A/P) paper checks on the second and fourth Fridays of
each month. Electronic Payments (ACH) are issued every Friday of each month. This cycle will
ensure that (provided timely departmental approvals are obtained) vendor payments will be made
within 30 days of invoice receipt.

City departments are expected to plan their payment transactions around the regular A/P check
cycle; off-cycle A/P checks will not be permitted without the approval of the Finance Director or
Assistant Finance Director. In emergency situations where payment cannot wait for the regular A/P
check cycle, arrangements can be made with the Finance Department to electronically transfer
funds to the vendor’s account.


XXI. ACCOUNTS RECEIVABLE AND BANKRUPTCY

ACCOUNTS RECEIVABLE BILLING OUTSOURCE

The City’s Collection Agency will handle billings for the following types of invoices:

       Environmental
       Demolition and Board Ups
       Impounds




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       Vacant Building
       Income Tax Receivables
       Other Invoices or Receivable as necessary

Environmental Invoices can be appealed through the Planning department within 30 days from
the date of the original invoice.

ACCOUNTS RECEIVABLE PROCEDURES

Each department will input invoices through the City’s A/R system software for billing types not
handled by the Collection Agency. The Treasurer’s Office will process the Receivables every
Friday. Each department should periodically but no less than monthly review invoices their office
has initiated for payment. It is up to the individual departments to monitor the payment of their
accounts and notify the Finance Division of problems. The Treasurer’s Office will review and turn
over to the Collection Agency invoices outstanding for 90 or more days.

LEGAL ACTION
Legal action may be used only as a last resort to collect on delinquent accounts. On the advice of
the Collection Agency it will be up to the City Treasurer and/or Income Tax Administrator to
determine which accounts warrant such action taking into consideration time and added costs in
collecting the delinquent account(s).

SETTLEMENTS

From time to time, debtors may want to enter into negotiations regarding their delinquent
account(s). The City Treasurer and/or Income Tax Administrator will have the authority to enter
into meaningful settlement negotiations with the debtor for accounts under $15,000.

OBSERVATION OF COLLECTION LAWS
The City Treasurer and/or Income Tax Administrator Federal, State and local laws are observed
and understood by all whom engage in collection activities on behalf of the City of Muskegon.

BANKRUPTCIES
Bankruptcy notices should always be forwarded to the Income Tax Administrator and City
Treasurer, regardless of whether the department receiving the notice of bankruptcy has an
outstanding receivable balance due from the debtor or not. Other departments throughout the City
may also have business pending with the debtor and must be notified of the bankruptcy status.

Upon receipt, the Income Tax Administrator and the City Treasurer, will circulate a notice to various
departments which typically deal with receivable accounts and who may be maintaining a collection
account with the debtor. Departments wishing to be included in the routing on a regular basis
should contact the Income Tax Administrator and the City Treasurer.

If a department receives correspondence from the Income Tax Administrator and City Treasurer,
requesting information on outstanding debts involved in a bankruptcy, the department should return
to the Income Tax Administrator and the City Treasurer, the requested information, with supporting
documents, within seven days of receipt. The Income Tax Administrator and the City Treasurer,
will consolidate information from the City as a whole and prepare and file a claim on a timely basis.

Departments utilizing an outside collection agency should notify the agency that upon receipt of a
bankruptcy notice, the agency is required to close and return the account to the City immediately.
Under no circumstances is an outside agency, such as a collection agency, to file a bankruptcy
claim on behalf of the City.




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The Income Tax Administrator and the City Treasurer will review certain accounts that may be
forwarded to the City Attorney’s Office for consideration due to the complexity of the bankruptcy
proceeding.

Upon receipt of a bankruptcy discharge or dismissal, the Income Tax Administrator and the City
Treasurer will notify all departments involved.


XXII. PAYROLL

DEDUCTIONS

The City is required to make various deductions from employee paychecks for taxes, pension
contributions, union dues and other purposes mandated by law, union contracts, or terms of
employment. Additionally, the City offers a range of “voluntary” deduction programs deemed to be
of general benefit to employees. These include deferred compensation retirement savings, and
additional life insurance purchase.

From time to time, outside firms (typically offering investment and/or insurance products) approach
the City about including their programs on the City’s voluntary payroll deduction menu. Although
such programs are touted as “employee benefits having no-cost to the City”, the fact is that these
programs can entail significant costs not only for payroll administration, but also in terms of
employee time consumed in marketing or educational efforts. The City’s general policy will be to
deny such requests. However, the City may elect to implement voluntary deduction programs it
deems to be worthwhile.

DIRECT DEPOSIT

The City requires Direct Deposit of payroll checks both as a means to improve operational
efficiency and reduce opportunities for fraud. To the extent allowed by state law, the City may
elect to mandate all employees be paid via Direct Deposit, with the exception of a first check,
change of bank or other extenuating circumstances. The following polices will govern the City’s
Direct Deposit practices:

     New employees will be given the choice of full direct deposit to one or multiple financial
         institution and/or accounts or to receive a paper check.
     Current employees will no longer be able to choose partial direct deposit and receipt of a
         paper check.
     Employees who currently direct deposit a portion of their payroll and receive a paper check
         will not be allowed to make any changes to their deposit accounts or amounts unless
         they are switching to full direct deposit.
     To the extent allowed by state law, the City may elect to mandate all employees be paid via
         Direct Deposit.


XXIII. SOCIAL SECURITY NUMBER PRIVACY POLICY

Section 1. Purpose
The purpose of this policy is to protect confidential information from individuals and businesses
that have contact with the City of Muskegon.


Section 2. Definitions



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(a) "Computer", "computer network", or "computer system" mean those terms as defined by the
City of Muskegon’s Information Technology Department

(b) "Mailed" means delivered by United States mail or other delivery service that does not require
the signature of recipient indicating actual receipt.

(c) "Person" means an individual, partnership, Limited Liability Company, association,
corporation, public or nonpublic elementary or secondary school, trade school, vocational school,
community or junior college, college, university, state or local governmental agency or
department, or other legal entity.
(d) "Publicly display" means to exhibit, hold up, post, or make visible or set out for open view,
including, but not limited to, open view on a computer device, computer network, website, or other
electronic medium or device, to members of the public or in a public manner.

(e) "Website" means a collection of pages of the world wide web or internet, usually in HTML
format, with clickable or hypertext links to enable navigation from 1 page or section to another,
that often uses associated graphics files to provide illustration and may contain other clickable or
hypertext links.

Section 3. Prohibited use of social security number of an employee, student, or
other individual; exceptions.
(1) Except as provided in subsection (2), a person shall not intentionally do any of the following
with the social security number of an employee, student, or other individual:

(a) Publicly display all or more than 4 sequential digits of the social security number.

(b) Subject to subsection (3), use all or more than 4 sequential digits of the social security number
as the primary account number for an individual. However, if the person is using the social
security number under subdivision (c) and as the primary account number on the effective date of
this act, this subdivision does not apply to that person until January 1, 2006.

(c) Visibly print all or more than 4 sequential digits of the social security number on any
identification badge or card, membership card, or permit or license.

(d) Require an individual to use or transmit all or more than 4 sequential digits of his or her social
security number over the internet or a computer system or network unless the connection is
secure or the transmission is encrypted.

(e) Require an individual to use or transmit all or more than 4 sequential digits of his or her social
security number to gain access to an internet website or a computer system or network unless
the connection is secure, the transmission is encrypted, or a password or other unique personal
identification number or other authentication device is also required to gain access to the internet
website or computer system or network.

(f) Include all or more than 4 sequential digits of the social security number in or on any document
or information mailed or otherwise sent to an individual if it is visible on or, without manipulation,
from outside of the envelope or packaging.

(g) Subject to subsection (3), beginning January 1, 2006, include all or more than 4 sequential
digits of the social security number in any document or information mailed to a person, unless any
of the following apply:

    (i)     State or federal law, rule, regulation, or court order or rule authorizes, permits, or
            requires that a social security number appear in the document.
    (ii)    The document is sent as part of an application or enrollment process initiated by the
            individual.



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    (iii)    The document is sent to establish, confirm the status of, service, amend, or terminate
             an account, contract, policy, or employee or health insurance benefit or to confirm the
             accuracy of a social security number of an individual who has an account, contract,
             policy, or employee or health insurance benefit.
    (iv)     The document or information is mailed by a public body under any of the following
             circumstances:

             (a) The document or information is a public record and is mailed in
                 compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to
                 15.246
             (b) The document or information is a copy of a public record filed or recorded with a
                 county clerk or register of deeds office and is mailed by that office to a person
                 entitled to receive that record.
             (c) The document or information is a copy of a vital record recorded as provided by
                 law and is mailed to a person entitled to receive that record.

    (v)      The document or information is mailed by or at the request of an individual whose
             social security number appears in the document or information or his or her parent or
             legal guardian.

(2) Subsection (1) does not apply to any of the following:

(a) A use of all or more than 4 sequential digits of a social security number that is authorized or
required by state or federal statute, rule, or regulation, by court order or rule, or pursuant to legal
discovery or process.

(3) It is not a violation of subsection (1)(b) or (g) to use all or more than 4 sequential digits of a
social security number if the use is any of the following:

(a) An administrative use of all or more than 4 sequential digits of the social security number the
ordinary course of business, by a person or a vendor of a person or a vendor or contractor of a
person, to do any of the following:

   (i)      Verify an individual’s identity, identify an individual, or do another similar
            administrative purpose related to an account, transaction, product, service, or
            employment or proposed account, transaction, product, service, or employment.
   (ii)     Investigate an individual’s claim, credit, criminal, or driving history.
   (iii)    Detect, prevent, or deter identity theft or another crime
   (iv)     Lawfully pursue or enforce a person’s legal rights, including, but not limited to, an
            audit, collection, investigation, or transfer of a tax, employee benefit, debt, claim,
            receivable, or account or an interest in a receivable or account.
   (v)      Lawfully investigate, collect a spousal obligation or tax liability.
   (vi)     Provide or administer employee or health insurance or membership benefits, claims,
            or retirement programs.

(b) A use of all or more than 4 sequential digits of a social security number as a primary account
number that meets both of the following;

   (i)      The use began before the effective date of this act.
   (ii)     The use is ongoing, continuous, and in the ordinary course of business. If the use is
            stopped for any reason, this subdivision no longer applies.




Section 4. Privacy policy




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(1) Effective January 1, 2006, all employees for the City of Muskegon are required to abide by the
Social Security Policy.

(a) All information that contains social security numbers must be handled discretely and remain
confidential

(b) Prohibits unlawful disclosure of the social security numbers.

(c) Employees will only have access to social security numbers on a need-to-know basis and if it
pertains the ordinary course of business.

(d) All documents that contain social security numbers must be shredded or destroyed in a
manner that information is no longer legible.

Section 5. Exemption from disclosure
All or more than 4 sequential digits of a social security number contained in a public record are
exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246, pursuant to section 13(1)(d) of the freedom of information act, 1976 PA 442, MCL 15.243.

Sec. 6. Violation of Privacy Policy
(1) A person who violates section 3 with knowledge that the person's conduct violates this act is
guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not
more than $1,000.00, or both.

(2) An individual may bring a civil action against a person who violates section 3 and may recover
actual damages. If the person knowingly violates section 3, an individual may recover actual
damages or $1,000.00, whichever is greater. If the person knowingly violates section 3, an
individual may also recover reasonable attorney fees. Except for good cause, not later than 60
days before filing a civil action, an individual must make a written demand to the person for a
violation of section 3 for the amount of his or her actual damages with reasonable documentation
of the violation and the actual damages caused by the violation. This subsection does not apply
to a person for conduct by an employee or agent of the person in violation of a privacy policy
created pursuant to section 4 or in compliance with the fair credit reporting act, 15 USC 1681 to
1681v, or subtitle A of title V of the Gramm-Leach-Bliley act, 15 USC 6801 to 6809, if the person
has taken reasonable measures to enforce its policy and to correct and prevent the reoccurrence
of any known violations.


XXIV. WATER AND SEWER POLICIES

CHARGES FOR LATE PAYMENTS

Bills not paid by the due date shall be subject to a service charge equal to ten (10%) percent of the
billing. Payment date is determined to be the date payment is received. The City is not responsible
for USPS delivery delays or issues. Post-dated checks will not be accepted for payment and will
be returned to the payer. In the event a delinquent bill must be spread on the taxes, for the purpose
of covering associated administrative costs, an additional service charge equal to twenty (20%)
percent with a minimum service charge of $25.00 and a maximum service charge of $100.00 of the
original delinquent billing amount shall be charged.



ADJUSTMENT OF BILLS FOR MAJOR LEAKS




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RESIDENTIAL WATER/SEWER LEAK ADJUSTMENT REGUALTIONS
The purpose of these regulations is to promote water conservation by encouraging customers to
promptly fix leaks and plumbing problems and to establish guidelines that provide fair and
consistent treatment of customers requesting leak adjustments.



TYPES OF ADJUSTMENTS

            1) Adjustments for leaks where water was discharged into the sanitary sewer system.
            2) Adjustments for leaks where water was not discharged into the sanitary sewer
               system.

RULES
No more than one leak adjustment will be allowed in any two year (24 month) period.

No more than two consecutive billing periods will be adjusted.

The request must be made within 30 days of the due date for the period initially involved and
must be accompanied by the following:

                A written statement from the customer describing the nature of the problem, the
                 date repairs were completed, and copies of the paid receipts for services and/or
                 supplies (where applicable).
                Current readings (at the time of the request) from both the meter and remote device
                 to be furnished by customer.

Leak adjustments will be based on metered usage experience after repairs are made and will be
made only if usage is demonstrably reduced (after adjusting for any extenuating circumstances).

If lost water entered the sanitary sewer system, leak adjustments to the customer’s water and
sewer billing will equal 25% of the estimated loss for no more than two billing periods.

If the lost water did not enter the sanitary sewer system (i.e., leaks in crawl spaces or into the
ground) water charges will be adjusted 25% of the estimated loss for no more than two billing
periods and sewer charges will be adjusted to normal usage based on prior year’s usage patterns.

If a leak is suspected but cannot be detected by the occupant or owner, additional assistance may
be requested from the Water Maintenance Department at no charge to the customer.



SHUTOFF PRACTICES

While the City is authorized to shut off water service for any delinquent bill, the City will normally
shut off water or sewer service if the charges to the premises or the meter in question are delinquent
in the amount of $100.00 or more. This amount and practice shall vary, and the threshold amount
for shutoff may be changed by the decision of the City Manager, from time to time, to an amount
less or more than $100.00. This decision shall be made by the City Manager based on the
administrative and enforcement availability and capability of City personnel, and the cost incurred
by the City by using this method of enforcement. Personal or business checks will not be accepted
for payment to restore service after an account has been shut off. Payment




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arrangements cannot be made to avoid shut off. Accounts paid after 3:00 pm will be turned on
the following business day.


BILLING INITIATION AND SERVICE CHANGES

The Michigan Compiled Law (MCL) 123.162, Act 178 of 1939, dictates that a municipality that
provides municipal water and sewer service to a property shall have a lien against the premises,
the City requires that the legal property owner sign on for water and/or or sewer billing service
and sign off for water and/or sewer service. The owner must approve any billing changes by
signing an application for service form located at the Treasurer’s Office/Water Billing Department.
Positive identification is required to be provided. These procedures are required to be followed
per the City of Muskegon’s Code of Ordinances, section 94-64.




BILLING CYCLES

For the purpose of reading water meters and billing customers, the city is divided into districts.
The meters for each district are read monthly and the customer accounts are also billed each
month with bills being due at least 15 days after the billing date.


E-BILLING

City water and sewer customers can sign up to receive their monthly bill in paperless format via
the internet. Customers that agree to receive their monthly water and sewer bill via the internet
help save paper, printing and postage costs and also receive a credit on their monthly bill.


AUTOMATIC PAYMENT (AUTOPAY)

City water and sewer customers can sign up to automatically pay their water and sewer bill in the
Automatic Pay program. Under the Automatic Pay program the customer’s water bill payment is
automatically deducted from their bank checking account or charged to their credit card account
each month when the bill is due. Customers enrolled in the Automatic Pay program receive a
credit on their monthly bill.


WATER/SEWER AFFIDAVIT

Property owners who desire, pursuant to MCL123.165, to avoid a tenant’s unpaid water/sewer bill
from becoming a lien against the real estate, may execute an affidavit and file it with the City of
Muskegon Water/Sewer Billing Department, 933 Terrace Street, Muskegon, MI 49440, together
with a deposit of an amount which may be established from time to time by the Muskegon City
Commission. A copy of the executed lease agreement must also be provided. The owner is
required to use the affidavit form provided by the City. The requirements and contents of the
affidavit are as follows:

     1) The written lease with tenant; said lease must specifically provide that the tenant, not
        the owner of the property, is directly responsible for all water and sewer bills associated
        with the unit under lease to that tenant.




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     2) The affidavit must be filled in completely, accurately, signed and notarized. If it is not
        correctly and completely filled out, signed and notarized, any benefits allowed pursuant
        to MCL 123.165 will not be available to the property owner.


     3) If there is more than one property owner or tenant; said affidavit must provide all
        applicable names. All required data must provide for said affidavit to be valid and
        enforceable.

     4) The affidavit must contain the exact date upon which the tenant’s written lease
        terminates. If the lease is extended, the extension must be in writing and the new
        termination date provided to the City with an affidavit containing the new information.

     5) The required deposit must be paid at the time of submission of the affidavit to the City.



XXV. PROPERTY TAX POLICIES

OVER/UNDER PAYMENT POLICY

It is recognized that from time to time, property owners will inadvertently send payment for property
taxes in the incorrect amount due to taxpayer error.

When the payment received is more than the tax amount owed, a refund will be issued via City
check. However, the cost to return small overpayments can exceed the amount due to be refunded.
In cases where the amount is $5.00 or less, the City Treasurer is authorized to adjust the
administrative fee in an amount that is equal to the refund amount, so that a refund is not necessary.

In cases where the payment is less than the amount due, a notice of amount due will be sent to the
taxpayer, unless there is insufficient time to do so before the tax roll is transferred to the county.
Recognizing that the County Treasurer will not collect on amounts due of $5.00 or less, parcels
that have an amount due of $5.00 or less will be adjusted via the administration fee prior to sending
the tax roll to the County Treasurer.

GENERAL PROPERTY TAX PAYMENT POLICIES

Date of payment is considered to be the date payment is received by the City Treasurer’s office.
Postmarks are not accepted as date of payment. City Treasurer is not responsible for delivery
issues arising due to the USPS or other carriers. Post-dated checks are not accepted, and will be
returned to the tax payer.



XXVI. POVERTY EXEMPTION INCOME GUIDELINES

The guidelines shall include but not be limited to the specific income and asset levels of the claimant
and all persons residing in the residence.

To be eligible, a person shall do all of the following on an annual basis:

        1) Be an owner of and occupy as a principal residence the property for which an
           exemption is requested.




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        2) File a claim with the City Assessor or Board of Review, accompanied by Federal and
           State Income tax returns for all persons residing in the residence, or a form 4988, if
           applicable.
        3) Produce a valid driver’s license or other form of positive identification if requested.
        4) Produce a deed, land contract, or other evidence of ownership of the property for which
           an exemption is requested if requested.
        5) Meet the Federal poverty income guidelines as defined and determined annually by
           the United States Office of Management and Budget (or its successor).
        6) Total household assets, except for the principal residence being claimed, essential
           household goods, and one motor vehicle, may not exceed one quarter (25%) of the
           Federal poverty guideline for the entire household. Assets include, but are not limited
           to real estate, motor vehicles, recreational vehicles and equipment, time shares,
           certificates of deposit, savings accounts, checking accounts, stocks, bonds, life
           insurance, retirement funds, antiques and collectibles, etc. Assets do not include basic
           essential household goods such as furniture, appliances, dishes and clothing. The
           value of assets will not be reduced by the amount of any indebtedness owed on such
           assets, or any indebtedness otherwise owed by the applicant or members of the
           household.

The Board of Review shall follow the above stated policy and Federal guidelines in granting or
denying an exemption. Updated 1/21/2026



XXVII. INCOME TAX POLICIES
PAYMENT AGREEMENTS

The City of Muskegon Income Tax Office does accept payment agreements. The terms of the
agreement are as follows:

       Twenty five percent (25%) of the total tax due for all years must be paid plus a $15.00
        fee.
       The remaining balance must be paid one year from the inception of the agreement.
       All future tax liabilities must be paid on time. This includes withholding tax payments if
        required.
       Interest and penalties will continue to accrue until the payment plan is paid in full.
       The City of Muskegon has the right to void this agreement at anytime.

If the taxpayer does not remain current on their payment agreement the City of Muskegon has the
right to pursue payment through the court system or a collection agency.

WRITE OFF POLICY

The Income Tax Department may write off income tax liability deemed not collectable due to death
or other reason. The Income Tax Administrator is authorized after ten (10) years to review and to
write off total tax liability of a taxpayer up to $15,000. Income Tax liability over $15,000 requires
City Commission approval before a write off can occur.

PROOF OF RESIDENCY

The City of Muskegon Income Tax follows the State of Michigan law to determine residency.

Resident means an individual domiciled in the city. Domicile means a place where a person has
true, fixed and permanent home and principal residence.




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Michigan law defines principal residence as the one place where a person has his or her true, fixed,
and permanent home to which, whenever absent he or she intends to return and that shall continue
as a principal residence until another principal residence is established.

In order to verify a person’s claim that a particular property is a principal residence, the City of
Muskegon will accept various documents that, taken together, to establish that the person or
persons is a resident. Examples include drivers license, voter registration card, state identification
cards, property tax records, mortgage deeds, rental agreements, income tax records and other
documentation. No one of these factors taken alone is controlling over any other factor.




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                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026                 Title: Equipment Purchase: Parks Department -
                                                      Bobcat UW56

Submitted by: Kyle Karczewski, Parks and              Department: DPW- Parks
Recreation Director

Brief Summary:
Staff requests authorization to purchase a Bobcat UW56 along with attachments from Grand Rental
for $107,255

Detailed Summary & Background:

The Parks Department seeks to purchase a Bobcat UW56, also known as a ToolCat, along with
multiple attachments for a total cost of $107,255 through a Sourcewell cooperative purchasing
contract. This equipment is well-suited for municipal and parks operations because it combines the
functionality of several pieces of equipment into one compact platform. The machine is capable of
operating in tighter park environments, trails, parking lots, athletic complexes, sidewalks, and facility
areas where larger equipment can be less efficient or cause turf damage. Its all-season capabilities
allow the City to utilize the equipment throughout the year for snow and ice control, hauling
materials, brush and debris cleanup, landscaping, field maintenance, construction support, and
general maintenance activities.

Included attachments and accessories consist of a 68-inch angle broom to improve sand clearing
down by the beach on sidewalks, 14-inch auger drive unit to help our plant trees (currently hand
digging) and bollard installations, 68-inch heavy-duty bucket, an 8-foot snow pusher that will be
extremely helpful in snow clearing as well as a snow blower attachment (sidewalk snow clearing). The
package also includes an extended warranty for 3000 hours. This equipment will benefit parks,
recreation, forestry, cemetery, water & sewer and highway.


Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                     Budgeted Item:
$107,255                                               Yes       x    No           N/A

Fund(s) or Account(s):                                Budget Amendment Needed:
445 Public Improvement                                 Yes            No       x   N/A



                                                                                               Page 91 of 209
Recommended Motion:
Move to authorize staff to purchase a Bobcat UW56 from Grand Rental for $107,255.

Approvals:                                        Name the Policy/Ordinance Followed:
Immediate Division       X                        Purchasing Policy
Head
Information
Technology
Other Division Heads
Communication
Legal Review




                                                                                        Page 92 of 209
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Page 96 of 209
                          Agenda Item Review Form
                          Muskegon City Commission
Commission Meeting Date: June 9, 2026                  Title: Equalization and Assessing Contract

Submitted by: Kenneth Grant, Finance Director          Department: Finance

Brief Summary:
Contract with the County of Muskegon to provide Equalization and Assessing Services from July 1,
2026 to June 30, 2031.

Detailed Summary & Background:
The purpose of this Agreement is to provide for a property assessment administration program to be
administered by the County Equalization Director, or designated representative, which will list,
appraise, and maintain a complete set of records for all real and personal property, subject to ad
valorem taxation, specific taxes, and in-lieu-of tax agreements within the Corporate limits of the City
of Muskegon. The base annual fee of $470,000 starting July 2026 will be subject to a 3% increase
effective July 1, 2027, and annually on this date for every year thereafter. The County Equalization
Department will provide a staff member to be on site at City Hall one full working day per week
beginning September 8, 2026.

Goal/Action Item:
2027 Goal 4: Financial Infrastructure

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                      Budgeted Item:
Starting July 2026 the base cost is $470,000 that is   Yes           No           N/A
subject to a 3% increase annually until June 30,
2031.

Fund(s) or Account(s):                                 Budget Amendment Needed:
101-267                                                Yes           No           N/A

Recommended Motion:

Staff recommends that the Commission approve the agreement with the County of Muskegon to
provide Equalization and Assessing Services for the City of Muskegon, effective July 1, 2026, through
June 30, 2031.


Approvals:                                             Name the Policy/Ordinance Followed:
Immediate Division



                                                                                             Page 97 of 209
Head
Information
Technology
Other Division Heads
Communication
Legal Review




                       Page 98 of 209
                  AGREEMENT BETWEEN THE CITY OF MUSKEGON
                                   AND
                  MUSKEGON COUNTY BOARD OF COMMISSIONERS


THIS AGREEMENT, entered into as of the 1st day of July 2026, between the City of Muskegon,
a municipal corporation, by its City Commission, hereinafter referred to as “The Municipality”,
and the County of Muskegon, by its Board of Commissioners, hereinafter referred to as “The
County”, is as follows:

                                            PURPOSE

The purpose of this Agreement is to provide for a property assessment administration program to
be administered by the County Equalization Director, or designated representative, which will list,
appraise, and maintain a complete set of records for all real and personal property, subject to ad
valorem taxation, specific taxes, and in-lieu-of tax agreements within the Corporate limits of The
Municipality pursuant to Public Act No. 160 of 1972.

                                 TERM AND TERMINATION

This agreement shall commence July 1, 2026, and terminate June 30, 2031, provided that either
party may terminate the Agreement on June 30 of each year upon ninety (90) days prior written
notice. The notice shall be sent by certified mail to the County Equalization Director if terminated
by The Municipality. The notice shall be sent by certified mail to the City Manager if terminated
by the County.

I.   The County agrees to perform the following services and provide the materials set forth
     herein:

     A. Scope of Service - To classify and appraise, according to the constitution and laws
        of the State of Michigan, each parcel of real property which lies within the confines
        of The Municipality, and to process all assessable personal property that is in such
        Municipality, and use the methods prescribed by the Michigan State Tax
        Commission. The Equalization Department will provide an assessment roll that will
        equal the tentative State Equalized Values for each classification of property. The
        final factor will be determined by the action of The Municipality’s Board of Review
        and the process of state equalization as determined by the State Tax Commission.

     B. Qualified Staff - All County employees engaged in the performance of this
        Agreement shall be professional in manner and appearance and be trained in property
        appraisal techniques. The assessor shall be certified by the State Tax Commission, as
        required for The Municipality’s size and State Equalized Value.

     C. Equipment and Supplies - The County will provide all equipment and supplies
        needed for the routine performance of its duties without additional expenses, except
        as otherwise set forth herein.




                                                                                                Page 99 of 209
D. Maps and Records - The Municipality shall provide current land use maps, zoning
   maps, street/centerline maps, plats, topographical maps, sewer and water maps, and
   shall make available any records or data which may be of use in making the appraisal,
   without cost to the County. The County has implemented a GIS system in which
   mapping data is maintained. The GIS system is addressed in sub-point “M” of this
   agreement.

E. Appraisal Manuals/Schedules - The current Michigan State Tax Commission
   Assessor’s Manuals shall be the cost schedules used in the appraisal of all properties.
   All cost schedules shall be indexed to reflect current costs as of Tax Day.

F. Record Cards - The County will maintain the master file at a specified location. The
   master file shall become the property of The Municipality when delivered.

G. Public Relations - Both parties recognize that good public relations are vital to the
   success of the assessment administration program. During the term of this
   Agreement, County employees shall endeavor to promote understanding and
   amicable relations with all members of the public. County staff will be assigned by
   the Equalization Director to report to the designated Municipal Building to conduct
   their duties, interact with Municipal staff, attend meetings and promote community
   relations. An Equalization Department staff member will be on site at the City Hall
   one full working day per week beginning September 8, 2026. The Municipality will
   provide adequate office area and operational infrastructure, such as
   telecommunication, data communication, utilities, networking capabilities and
   electronic storage capacity to adequately support required staff activities and
   necessary ancillary functions. The accommodations shall be safe, modern, and reflect
   a professional function.

H. Property Owner Notification and Official Statements - It shall be the
   responsibility of the County to notify all property owners annually of assessed and
   taxable values, as provided by law, whether values increase or decrease, as well as
   distribute personal property statements and other official forms.

I. Assessment Roll - The County shall prepare the assessment roll and certify the same
   for The Municipality in a timely manner.

J. Board of Review - County staff will advise and assist The Municipality’s Board of
   Review in preparing for, conducting, and implementing any changes resulting from
   the required meetings of the Board.

K. Appeals - The County Equalization Director, or designated representative, shall
   represent The Municipality in all property assessment appeals and in proceedings
   before the Tax Tribunal concerning properties under this Agreement. The
   Municipality shall designate and provide the legal services for such appeals or
   proceedings; however, costs or expenses which may be incurred by the County in
   employing additional counsel, expert appraisers, or performing extraordinary specific



                                                                                      2
                                                                                             Page 100 of 209
   appraisal work in connection with such appeals, proceedings, or other functions shall
   be paid by The Municipality provided that the Equalization Director seeks and
   obtains approval from The Municipality prior to incurring such costs or expenses.
   Additionally, should either party terminate this agreement, the County, or designated
   representative, shall represent The Municipality in all property assessment appeals
   and in proceedings filed during the existence of this agreement. The fee shall be
   $100.00 per hour for preparation, appearance, and travel after termination of the
   agreement.

L. Computerized Appraisals and Information Technology – The County will
   provide staff, equipment, and the BS&A Assessing software to maintain electronic
   property records using a computer assisted mass appraisal system. Assessment
   administration, including digital photography and sketching, as well as general
   business application software shall be prescribed by the County. All property
   information shall adhere to the requirements of the County Wide Area Network and
   its specifications. The records will be utilized for annual valuation updates. The
   County may request the assistance of designated staff of The Municipality to
   determine proper neighborhoods for market value determinations. The County will
   ensure that the assessment records reflect the property’s true cash value, assessed
   valuation, and taxable valuation to be utilized for any property tax calculations in
   conformance with applicable General Property Tax Law requirements. The computer
   assisted mass appraisal system and its attributes shall become the property of The
   Municipality upon termination of this agreement.

   Additionally, the County and The Municipality shall participate in an electronic
   building permit system that will transfer such data to the computer aided assessment
   administration system without modification or hesitation. The system and its
   attributes shall be determined by the County.

M. Geographical Information Systems – The County and The Municipality may
   implement a geographical information system. An independent formal mutual
   agreement will govern this function.

N. Special Assessments- Special assessment benefit analysis, roll preparation,
   processing, and related reports will be provided by the County when formally
   requested. The fee shall be $100.00 per hour.

O. Records Maintenance and Access – The County agrees to maintain records with
   the most current information the County has available.

           1. All changes in property ownership will be recorded in the assessment records
           within 30 days of being filed with the Muskegon County Register of Deeds unless
           incomplete property documentation prevents timely recording. In these cases, the
           Equalization Department will strive to get complete, accurate ownership
           information recorded as quickly as practical.




                                                                                    3
                                                                                           Page 101 of 209
              2. City staff will be afforded full access to assessment records (including
              photographs).
   P. Pursuant to Public Act 453 of 1976, neither party shall discriminate against an
      employee or applicant for employment with respect to hire, tenure, terms, conditions
      or privileges of employment, or a matter directly or indirectly related to employment,
      because of race, color, religion, national origin, age, sex, weight, or marital status.
      Breach of this covenant may be regarded as a material breach of the contract.

II. The County will perform all the above services for The Municipality, subject to costs and
    expenses set forth, under the terms and conditions below:

     A. Annual Fees - For each year of this agreement the annual fee shall be calculated
        in the following manner: The initial period shall be from July 1, 2026, to June 30,
        2027, and the fee shall be $470,000. The base Annual Fee of $470,000 shall be
        subject to a 3 percent (3%) increase effective July 1, 2027, and annually on this
        date for every year thereafter.

         This annual fee does not include the cost associated with a full re-inspection. A re-
         inspection fee can be negotiated between the County Equalization Director and if
         staff field reviews determine this to be necessary. Additionally, this re-inspection
         may be required by the State following their Assessment Roll Audit conducted
         every five years.

     B. Payments - The Municipality shall remit the annual fee in equal quarterly
        payments commencing July 1 of each year of this agreement.

     C. Relationship of the Parties – The parties acknowledge that the agreement
        between the County and The Municipality is one of an independent contractor.
        Neither of the parties should represent that an employment relationship is created
        or exists with regard to the employees of the other. This independent contractor
        relationship shall be given its full scope and intent including without limitation as
        it pertains to liability, wages, benefits, and taxation.

III. Miscellaneous

     A. Section Headings – The headings of the sections shall be solely for convenience
        of reference and shall not affect the meaning, construction, or effect hereof.

     B. Severability – If any one or more of the provisions contained herein shall for any
        reason be held to be invalid, illegal, or unenforceable in any respect, then such
        provision or provisions shall be deemed severable from the remaining provisions
        hereof, and such invalidity, illegality, or unenforceability shall not affect any other
        provision hereof, and this Agreement shall be construed as if such invalid, illegal,
        or unenforceable provision had never been contained herein.




                                                                                            4
                                                                                                  Page 102 of 209
     C. Entire Agreement and Amendment – In conjunction with matters considered
        herein, this Agreement contains the entire understanding and agreement of the
        parties and there have been no promises, representations, agreements, warranties,
        or undertakings by any of the parties, either oral or written, of any character or
        nature hereafter binding except as set forth herein. This Agreement may be altered,
        amended, or modified only by an instrument in writing, executed by the parties to
        this Agreement, and by no other means. Each party waives their future right to
        claim, contest, or assert that this Agreement was modified, canceled, superseded,
        or changed by any oral agreements, course of conduct, waiver, or estoppel.
     D. Successors and Assigns – All representations, covenants and warranties set forth
        in this Agreement by or on behalf of, or for the benefit of any or all of the parties
        hereto, shall be binding upon and inure to the benefit of such party, it successors
        and assigns.

     E. Terms and Conditions – The terms and conditions used in this Agreement shall
        be given their common and ordinary definition and will not be construed against
        either party.

     F. Execution of Counterparts – This Agreement may be executed in any number of
        counterparts and each such counterparts shall for all purposes be deemed to be an
        original; and all such counterparts, or as many of them as the parties shall preserve
        undestroyed, shall together constitute one and the same instrument.


                              ACKNOWLEDGEMENTS


City of Muskegon:                            By:
                                                     Ken Johnson
                                             Its:    Mayor

                                             By:
                                                     Ann Marie Meisch
                                             Its:    City Clerk




County of Muskegon:                          By: ________________________________
                                                    Charles Nash
                                             Its:   Chairman Board of Commissioners

                                             By: ________________________________
                                                   Karen D. Buie
                                             Its:  County Clerk



                                                                                          5
                                                                                                Page 103 of 209
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026             Title: MERS 457 Participation Agreement

Submitted by: Kenneth Grant, Finance Director     Department: Finance

Brief Summary:
MERS requires that Contribution Addendum to ensure that our Employer Match on record matches
what was negotiated or agreed upon per each bargaining unit. Non-Union's employer match is
$3,000. Clerical and DPW's employer match is $2,000.

Detailed Summary & Background:
MERS requires a Contribution Addendum be approved by the the City Commission to ensure that the
employer match on record aligns with what was negotiated or agreed upon for each bargaining
unit. The employer match for Non-Union employees is $3,000, while the employer match for Clerical
and DPW employees is $2,000.

Goal/Action Item:
2027 Goal 4: Financial Infrastructure

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                 Budgeted Item:
                                                   Yes X        No             N/A

Fund(s) or Account(s):                            Budget Amendment Needed:
                                                   Yes          No             N/A

Recommended Motion:
I recommend that the Commission approve the MERS Contribuition Addendum for the employer 457
match for the Non-Union, DPW, and Clerical bargaining units.

Approvals:                                        Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication



                                                                                      Page 104 of 209
Legal Review




               Page 105 of 209
     MERS 457 Participation Agreement

     1134 Municipal Way Lansing, MI 48917 | 800.767.6377                         mersofmich.com


I.    EMPLOYER INFORMATION
      Municipality Name: City of Muskegon

      Municipality Address:

            Street:

            City:                                                                            Zip:

      Municipality Phone:                                   Municipality Number: 6116
      Plan Number: 6461161-01                               Reporting Unit: 01
      Payroll Frequency:
                               If Other is selected, provide details here:


II. EFFECTIVE DATE
          New Plan
          Effective Date:

          Amended Plan
          This agreement is a substitution and amendment of an existing MERS 457 Program.
              Note: This agreement only reflects changes to the plan.
          Effective Date: June 1, 2026


III. PLAN ELIGIBILITY
      Only Employees as defined in the Program may be covered by this Participation Agreement. Subject to
      other conditions in the Program, this Agreement, and Addendum (if applicable), the following Employees
      are eligible to participate in the Program:
      Eligible Employees (examples: Full-Time, Clerical, Union Employees participating in XXXX Union):




      This plan will be named:

      Probationary Period
             No probationary period
             Contributions will begin after the probationary period has been satisfied. Probationary periods
             are allowed in one-month increments, no longer than 12 months. Participant wages must be
             reported to MERS from the time of hire, including during the probationary period.
              Probationary months:
Form MD-470 (version 2026-01-14)                                                                       Page 1 of 4
                                                                                                      Page 106 of 209
MERS 457 Participation Agreement                                              Plan Number: 6461161-01

IV. CONTRIBUTIONS
      1. Definition of Compensation
         This must be used when determining both employer and employee contributions.
         Select one option below.
               Base Wages
               Box 1 Wages of W-2
               Gross Wages
               Box 5 Medicare Wages of W-2
               Custom Definition. If selected, you must submit a Custom Definition of Compensation Addendum (MD-008)

      2. Employee Contributions
         The Program allows for both pre-tax and Roth deferrals. Participants can increase, decrease, or stop
         contributing at any time, subject to IRS limits and requirements, through their online account access.

      3. Automatic Enrollment
               No – If No, skip to question 4.
               Yes – If Yes, complete 3.1-3.2 below.
           3.1 Covered Employees
               The following eligible employees are covered employees (check one):
                          Only employees hired, rehired, or promoted into a position covered by the MERS 457
                          Program on or after the effective date of this agreement will be automatically enrolled in the
                          Program.
                          Employees currently employed, hired, rehired, or promoted into a position covered by
                          the MERS 457 Program on or after the effective date of this agreement will be enrolled,
                          regardless of their date of hire.
           3.2 Automatic Enrollment Contribution
                 Participant’s pre-tax contribution per payroll will be:

                      $                or          %

           3.3 Automatic Escalation Schedule
                 This contribution will be increased annually each January 1 by the Annual Increase up to the
                 Maximum Escalation amount as defined below.
                 Annual Increase:                   % or $

                 Maximum Escalation:                % or $
                 Automatic Enrollment / Automatic Escalation can only be added to an existing plan as of
                 the first day of the Employer’s Plan year and after a 30 day notice is provided to employees.
                 Contributions are withheld and reported on a pre-tax basis according to the contribution
                 schedule selected in this Agreement and will continue until the covered employee affirmatively
                 elects otherwise or has a severance from employment.
                 Employers are responsible for notifying employees of their right to opt out of participation at the
                 time of eligibility and allow up to 90 days for the Opt Out and Refund Form to be returned.

Form MD-470 (version 2026-01-14)                                                                            Page 2 of 4
                                                                                                            Page 107 of 209
MERS 457 Participation Agreement                                            Plan Number: 6461161-01

      4. Employer Contributions
           Employer Contribution shall be permitted:
                 No

                 Yes – If Yes, contributions are outlined in the Contribution Addendum for MERS 457 (MD-470b).

V.    LOANS
      Loans are permitted:
          No
          Yes – If Yes, your signature on this document confirms you have received and reviewed the
                Defined Contributions & 457 Loan Addendum (MD-071). Also, the election of loans for any division
                automatically applies to all divisions of your 457 Plan.

VI. APPOINTING MERS AS THE PLAN ADMINISTRATOR
      The Employer hereby agrees to the provisions of this MERS 457 Participation Agreement and appoints
      MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
      also agrees that in the event of any conflict between the MERS Plan Document and the MERS 457
      Participation Agreement, the provisions of the Plan Document control.

VII. MODIFICATION OF THE TERMS OF THE ADOPTION AGREEMENT
      If the Employer desires to amend any of its elections contained in this Adoption Agreement, including
      attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS,
      must adopt a new Adoption Agreement. The amendment of this Agreement is not effective until
      approved by MERS.

VIII. ENFORCEMENT
      1. This Participation Agreement may be terminated only in accordance with the MERS 457 Plan
         Document.
      2. The Employer hereby agrees to be bound by the MERS 457 Plan Document and all policies adopted
         by the Board as applicable to the MERS 457 Plan, as these may be amended from time to time.
      3. The employer hereby acknowledges it understands that failure to properly fill out this Participation
         Agreement may result in the ineligibility of the program.




Form MD-470 (version 2026-01-14)                                                                            Page 3 of 4
                                                                                                           Page 108 of 209
MERS 457 Participation Agreement                                    Plan Number: 6461161-01

IX. EXECUTION
      Authorized Designee of Governing Body of Municipality or Chief Judge of Court

      This Adoption Agreement is hereby approved by (municipality/court):
       City of Muskegon

      Dated (DD/MM/YYYY):


      Authorized signature:
      Name (printed):
      Title:


      Approved by the Municipal Employees’ Retirement System of Michigan

      Dated (DD/MM/YYYY):
      Authorized MERS Signature:




Form MD-470 (version 2026-01-14)                                                              Page 4 of 4
                                                                                              Page 109 of 209
    Contribution Addendum to the MERS 457

    1134 Municipal Way Lansing, MI 48917 | 800.767.6377                           mersofmich.com


This is an addendum to the 457 Participation Agreement completed by the following municipality.
     Municipality Name: City of Muskegon
      Plan Number: 6461161-01

The details below apply to   ALL covered employees –OR– a specific group of
covered employees (specify here): Non-Union employees

1. Employer Matching Contributions

           No – If No, skip to section 2.
           Yes – If Yes, complete 1.1 and 1.2 below.
          1.1      Employer Match Calculation
                   The employer elects the following matching contribution formula (check one):
                         Percentage: The employer will match     % of the participant deferrals at a
                         rate of  % (minimum) up to       % (maximum).
                           For example, if an employer chooses a 50% match, they contribute 0.50% for
                           every 1% the participant defers. For a 100% match with a 5% minimum and 10%
                           maximum, the employer matches contributions dollar-for-dollar on amounts above
                           5% and below 10%.
                         Flat Dollar: The employer will match 100 % of participant deferrals as a flat dollar
                         rate of $ 1              (minimum) up to $ 3,000           (maximum)
                         per  year              .
          1.2      Employer Match Frequency
                   Employer match contributions will be made (check one):

                       Per Payroll      Quarterly         Annually    Other:

2     Non-Matching Contributions

          No
          Yes – If Yes, complete 2.1 to 2.2 below.
          2.1     Employer Non-Match Calculation
                  The employer hereby elects to make contributions to the participants’ accounts
                  without regard to a participant’s contribution amount (check all that apply).
                         Compensation: a contribution of $                or    %
                         One-Time: $
          2.2     Employer Non-Match Frequency
                  Employer non-matching contributions will be made (check one):

                      Per Payroll       Quarterly         Annually   Other:

Form MD-470b (version 2026-02-09)                                                                         Page 1 of 1
                                                                                                         Page 110 of 209
    Contribution Addendum to the MERS 457

    1134 Municipal Way Lansing, MI 48917 | 800.767.6377                           mersofmich.com


This is an addendum to the 457 Participation Agreement completed by the following municipality.
     Municipality Name: City of Muskegon
      Plan Number: 6461161-01

The details below apply to   ALL covered employees –OR– a specific group of
covered employees (specify here): Clerical & DPW

1. Employer Matching Contributions

           No – If No, skip to section 2.
           Yes – If Yes, complete 1.1 and 1.2 below.
          1.1      Employer Match Calculation
                   The employer elects the following matching contribution formula (check one):
                         Percentage: The employer will match     % of the participant deferrals at a
                         rate of  % (minimum) up to       % (maximum).
                           For example, if an employer chooses a 50% match, they contribute 0.50% for
                           every 1% the participant defers. For a 100% match with a 5% minimum and 10%
                           maximum, the employer matches contributions dollar-for-dollar on amounts above
                           5% and below 10%.
                         Flat Dollar: The employer will match 100 % of participant deferrals as a flat dollar
                         rate of $ 1              (minimum) up to $ 2,000           (maximum)
                         per  year              .
          1.2      Employer Match Frequency
                   Employer match contributions will be made (check one):

                       Per Payroll      Quarterly         Annually    Other:

2     Non-Matching Contributions

          No
          Yes – If Yes, complete 2.1 to 2.2 below.
          2.1     Employer Non-Match Calculation
                  The employer hereby elects to make contributions to the participants’ accounts
                  without regard to a participant’s contribution amount (check all that apply).
                         Compensation: a contribution of $                or    %
                         One-Time: $
          2.2     Employer Non-Match Frequency
                  Employer non-matching contributions will be made (check one):

                      Per Payroll       Quarterly         Annually   Other:

Form MD-470b (version 2026-02-09)                                                                         Page 1 of 1
                                                                                                         Page 111 of 209
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026               Title: Asphalt Emulsion Spill Remediation

Submitted by: Joe Buthker, DPW Superintendent       Department: Public Works

Brief Summary:
Staff is requesting retroactive approval to pay $129,366.50 to GFL Environmental for cleanup related
to an asphalt emulsion spill at DPW.

Detailed Summary & Background:
On March 26, 2026, Department of Public Works staff discovered that asphalt emulsion had
discharged from a heated storage tank at the DPW facility. The material entered the storm sewer
system and eventually flowed into Little Black Creek near the Roberts Street outfall.

DPW staff immediately contained the release at our facility to prevent additional material from
entering the storm sewer system. Muskegon County Hazardous Materials Response Team and EGLE
were notified, and GFL Environmental was contracted to perform containment and cleanup. GFL
responded within hours, installed containment booms in the creek, and cleaned the impacted
sections of the storm sewer system. Waste was temporarily stored in containers at the DPW facility
prior to disposal. The cost for containment, cleanup, and disposal by GFL Environmental for
$129,366.50 was approved under the Emergency Procurements section of the Purchasing Policy. This
expense was not included in the adopted streets budget, and the necessary budget amendments
have been made as part of the Q4 reforecast.

While the indicident is regrettable, the prompt action of DPW staff and our community partners
prevented the spill from permanently affecting our waterways and environment. Staff is evaluating
improvements to our asphalt emulsion storage system to eliminate the potential for future
unexpected discharges and flows into the storm sewer system. Until that time the City has been
purchasing asphalt emulsion from the County, which has a similar tank at their facility.

Goal/Action Item:

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                   Budgeted Item:
$129,366.50                                         Yes            No       X   N/A

Fund(s) or Account(s):                              Budget Amendment Needed:
202-450                                             Yes       X    No           N/A

Recommended Motion:


                                                                                           Page 112 of 209
I move to authorize staff to pay GFL Environmental $129,366.50 for the cleanup of an asphalt
emulsion spill at DPW.

Approvals:                                         Name the Policy/Ordinance Followed:
Immediate Division        X                        Purchasing Policy
Head
Information
Technology
Other Division Heads
Communication
Legal Review




                                                                                         Page 113 of 209
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                                                                                     Invoice
                                                                                          Whitehall Industrial                                               Invoice
                                                                                        Tel: (231) 893-1173 Fax:                                          LQ03429416
                                                                                                                                                          Invoice Date
                                                                                                                                                            4/30/2026
          Bill To:                                Acct #: L000682384                                                Job Site:                   Site #: 000795543
          City of Muskegon                                                                                          City of Muskegon
          Attn: Accounts Payable                                                                                    Attn: Joe Buthker
          1350 East KeatIng Street                                                                                  2409 Roberts St
          Muskegon, MI                                                                                              Muskegon, MI
          49442                                                                                                     49444
                                                                                                                    Tel: (231) 724-6989 Fax:
                                                                                                                    Email: [email protected]
Work Order No: W4222603 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                   Ref: BR002654-A

                                                                                                                                                                                         Note
Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel to Clean-out Vacuum Truck from ER Response Emulsion Spill                            Comments:

   Service      Service                                                                               Route        Payment      Payment                                                         Time
                                         Purchase Order                 Rep      Driver      Zone                                               Truck No          Trailer No      Time In
    Date         Week                                                                                  No          Method        Terms                                                          Out
                                                                                                                                 Net 30
  4/2/2026           14                                                BR2        ZJ2                            On Account                      123011
                                                                                                                                 Days
                                                                                                                                                                                             Load
       Manifest Reference Numbers                     Consolidated Manifest Number               Third Party Manifest Ref. No.               Work Order Reference Numbers                   Number
                                                                                                                                                         BR002654-A
                                                                                                                                       Waste
                                                                                                     Srv         Waste       Supply                             Price Per                    Subtotal of
Line No   Part No                                       Quoted Desc                                                                    Volume      Qty Billed                 Billing UOM
                                                                                                    Sched        Class       Volume                               UOM                         Service
                                                                                                                                      Removed
                      Site Supervisor
   1         8321                                                                                      0                                           3.50000        $135.0000      Hour             $472.50


                      Vacuum Truck w/ Operator
   2         8321                                                                                      0                                           3.50000        $205.0000      Hour             $717.50


                      Laborer
   3         8320                                                                                      0                                           3.50000         $71.5000      Hour             $250.25


                      Laborer
   4         8320                                                                                      0                                           3.50000         $71.5000      Hour             $250.25


                      Laborer
   5         8320                                                                                      0                                           3.50000         $71.5000      Hour             $250.25


                      Portable Hot Water Washer
   6         8324                                                                                      0                                           1.00000        $600.0000      Shift            $600.00


                      PPE
   7         8323                                                                                      0                                          154.00000         $1.0000      Each             $154.00


                      Fuel Surcharge
   8         3259                                                                                                                                  1.00000          $0.0000      Each             $247.52


                      EERF
   9         3260                                                                                                                                  1.00000          $0.0000      Each             $148.21



Work Order No: W4222676 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                   Ref: BR002659-A
Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel to Clean-out Vacuum Tanker/ Add Dirt to Solidify Emulsion from ER Response              Note
Emulsion Spill                                                                                                                                                                              Comments:

   Service      Service                                                                               Route        Payment      Payment                                                         Time
                                         Purchase Order                 Rep      Driver      Zone                                               Truck No          Trailer No      Time In
    Date         Week                                                                                  No          Method        Terms                                                          Out
                                                                                                                                 Net 30
  4/3/2026           14                                                BR2        NA1                            On Account                        N/A
                                                                                                                                 Days
                                                                                                                                                                                             Load
       Manifest Reference Numbers                     Consolidated Manifest Number               Third Party Manifest Ref. No.               Work Order Reference Numbers                   Number
                                                                                                                                                         BR002659-A
                                                                                                                                       Waste
                                                                                                     Srv         Waste       Supply                             Price Per                    Subtotal of
Line No   Part No                                       Quoted Desc                                                                    Volume      Qty Billed                 Billing UOM
                                                                                                    Sched        Class       Volume                               UOM                         Service
                                                                                                                                      Removed
                      Project Manager
  10         8321                                                                                      0                                           9.50000        $150.0000      Hour           $1,425.00


                      Site Supervisor
  11         8321                                                                                      0                                           9.50000        $135.0000      Hour           $1,282.50


                      Vacuum Tanker w/ Operator
  12         8321                                                                                      0                                           4.50000        $225.0000      Hour           $1,012.50




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                                                Page 119 of 209
                                                                                                                                                                                  Page 1 of 7
                                                                                       Invoice
                                                                                           Whitehall Industrial                                                Invoice
                                                                                         Tel: (231) 893-1173 Fax:                                           LQ03429416
                                                                                                                                                            Invoice Date
                                                                                                                                                              4/30/2026
Work Order No: W4222676 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                     Ref: BR002659-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel to Clean-out Vacuum Tanker/ Add Dirt to Solidify Emulsion from ER Response                Note
Emulsion Spill                                                                                                                                                                                Comments:

   Service      Service                                                                                Route        Payment      Payment                                                          Time
                                         Purchase Order                   Rep     Driver      Zone                                                 Truck No         Trailer No      Time In
    Date         Week                                                                                   No          Method        Terms                                                           Out
                                                                                                                                  Net 30
  4/3/2026          14                                                   BR2       NA1                            On Account                         N/A
                                                                                                                                  Days
                                                                                                                                                                                               Load
       Manifest Reference Numbers                       Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                   Number
                                                                                                                                                           BR002659-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste       Supply                              Price Per                    Subtotal of
Line No   Part No                                         Quoted Desc                                                                   Volume       Qty Billed                 Billing UOM
                                                                                                     Sched        Class       Volume                                UOM                         Service
                                                                                                                                       Removed
                     Laborer
  13         8320                                                                                       0                                            7.50000         $71.5000      Hour             $536.25


                     Laborer
  14         8320                                                                                       0                                            7.00000         $71.5000      Hour             $500.50


                     Laborer
  15         8320                                                                                       0                                            7.50000         $71.5000      Hour             $536.25


                     Laborer
  16         8320                                                                                       0                                            5.50000         $71.5000      Hour             $393.25


                     Overtime After 8 Hours or 5PM (Monday - Friday)
  17         8320                                                                                       0                                            3.00000         $33.0000      Hour              $99.00


                     Skid Steer
  18         8324                                                                                       0                                            1.00000        $575.0000      Day              $575.00


                     Mini Vac
  19         8324                                                                                       0                                            1.00000        $600.0000      Shift            $600.00


                     275 Gallon Totes
  20         8322                                                                                       0                                            3.00000        $330.0000      Tote             $990.00


                     Fuel Surcharge
  21         3259                                                                                                                                    1.00000          $0.0000      Each             $773.76


                     EERF
  22         3260                                                                                                                                    1.00000          $0.0000      Each             $437.26



Work Order No: W4222759 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                     Ref: BR002677-A

                                                                                                                                                                                           Note
Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Loading, Transportation & Disposal of Emulsion/Water                               Comments:

   Service      Service                                                                                Route        Payment      Payment                                                          Time
                                         Purchase Order                   Rep     Driver      Zone                                                 Truck No         Trailer No      Time In
    Date         Week                                                                                   No          Method        Terms                                                           Out
                                                                                                                                  Net 30
  4/8/2026          15                                                   BR2       ZJ2                            On Account                       512014
                                                                                                                                  Days
                                                                                                                                                                                               Load
       Manifest Reference Numbers                       Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                   Number
                                                        BOL #BR2677-A1, #BR2677-A2                                                                         BR002677-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste       Supply                              Price Per                    Subtotal of
Line No   Part No                                         Quoted Desc                                                                   Volume       Qty Billed                 Billing UOM
                                                                                                     Sched        Class       Volume                                UOM                         Service
                                                                                                                                       Removed
                     Site Supervisor w/ Support Truck
  23         8321                                                                                       0                                            6.50000        $135.0000      Hour             $877.50


                     Vacuum Tanker w/ Operator
  24         8321                                                                                       0                                            9.50000        $225.0000      Hour           $2,137.50


                     Overtime After 8 Hours or 5PM (Monday - Friday)
  25         8320                                                                                       0                                            1.50000         $33.0000      Hour              $49.50


                     Disposal Fee, Emulsion/Water                                                                                                   12000.0000
  26         8331                                                                                       0                                  12000                      $1.1000     Gallon         $13,200.00
                                                                                                                                                        0

                     PPE
  27         8323                                                                                       0                                            22.00000         $1.0000      Each              $22.00


                     Fuel Surcharge
  28         3259                                                                                                                                    1.00000          $0.0000      Each             $655.76


                     EERF
  29         3260                                                                                                                                    1.00000          $0.0000      Each             $895.76




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                                                  Page 120 of 209
                                                                                                                                                                                    Page 2 of 7
                                                                                       Invoice
                                                                                           Whitehall Industrial                                                 Invoice
                                                                                         Tel: (231) 893-1173 Fax:                                            LQ03429416
                                                                                                                                                             Invoice Date
                                                                                                                                                               4/30/2026
Work Order No: W4225573 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002678-A

                                                                                                                                                                                            Note
Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Loading, Transportation & Disposal of Emulsion/Water                                Comments:

   Service      Service                                                                                Route        Payment      Payment                                                          Time
                                         Purchase Order                   Rep     Driver      Zone                                                  Truck No         Trailer No      Time In
    Date         Week                                                                                   No          Method        Terms                                                           Out
                                                                                                                                  Net 30
  4/9/2026          15                                                   BR2       ZJ2                            On Account                        512014
                                                                                                                                  Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                       Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                    Number
                                                        BOL #BR2678-A1, #BR2678-A2                                                                        BR002678-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste       Supply                               Price Per                   Subtotal of
Line No   Part No                                         Quoted Desc                                                                   Volume        Qty Billed                 Billing UOM
                                                                                                     Sched        Class       Volume                                 UOM                        Service
                                                                                                                                       Removed
                     Vacuum Tanker w/ Operator
  30         8321                                                                                       0                                             9.00000        $225.0000      Hour          $2,025.00


                     Overtime After 8 Hours or 5PM (Monday - Friday)
  31         8320                                                                                       0                                             1.00000         $33.0000      Hour             $33.00


                     Disposal Fee, Emulsion/Water                                                                                                    11500.0000
  32         8331                                                                                       0                                  11500                       $1.1000     Gallon        $12,650.00
                                                                                                                                                         0

                     Fuel Surcharge
  33         3259                                                                                                                                     1.00000          $0.0000      Each            $440.44


                     EERF
  34         3260                                                                                                                                     1.00000          $0.0000      Each            $808.94



Work Order No: W4234819 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002692-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel to Clean-out Emulsion from Creek                                                   Note Comments:

   Service      Service                                                                                Route        Payment      Payment                                                          Time
                                         Purchase Order                   Rep     Driver      Zone                                                  Truck No         Trailer No      Time In
    Date         Week                                                                                   No          Method        Terms                                                           Out
                                                                                                                                  Net 30
 4/13/2026          16                                                   BR2       EM5                            On Account                       PTruck-633
                                                                                                                                  Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                       Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                    Number
                                                                                                                                                          BR002692-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste       Supply                               Price Per                   Subtotal of
Line No   Part No                                         Quoted Desc                                                                   Volume        Qty Billed                 Billing UOM
                                                                                                     Sched        Class       Volume                                 UOM                        Service
                                                                                                                                       Removed
                     Project Manager w/ Support Vehicle
  35         8321                                                                                       0                                             3.00000        $150.0000      Hour            $450.00


                     Site Supervisor w/ Support Truck
  36         8321                                                                                       0                                             4.50000        $135.0000      Hour            $607.50


                     Laborer
  37         8320                                                                                       0                                             4.50000         $71.5000      Hour            $321.75


                     Laborer
  38         8320                                                                                       0                                             4.50000         $71.5000      Hour            $321.75


                     Laborer
  39         8320                                                                                       0                                             4.50000         $71.5000      Hour            $321.75


                     PPE
  40         8323                                                                                       0                                             55.00000         $1.0000      Each             $55.00


                     Fuel Surcharge
  41         3259                                                                                                                                     1.00000          $0.0000      Each            $234.24


                     EERF
  42         3260                                                                                                                                     1.00000          $0.0000      Each            $114.28



Work Order No: W4234874 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002691-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Frac Tank Cleaning                                                           Note Comments:

   Service      Service                                                                                Route        Payment      Payment                                                          Time
                                         Purchase Order                   Rep     Driver      Zone                                                  Truck No         Trailer No      Time In
    Date         Week                                                                                   No          Method        Terms                                                           Out
                                                                                                                                  Net 30
 4/13/2026          16                                                   BR2      DR17                            On Account                        311001
                                                                                                                                  Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                       Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                    Number
                                                                                                                                                          BR002691-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste       Supply                               Price Per                   Subtotal of
Line No   Part No                                         Quoted Desc                                                                   Volume        Qty Billed                 Billing UOM
                                                                                                     Sched        Class       Volume                                 UOM                        Service
                                                                                                                                       Removed
                     Site Supervisor w/ Support Truck
  43         8321                                                                                       0                                             5.50000        $135.0000      Hour            $742.50




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                                                   Page 121 of 209
                                                                                                                                                                                     Page 3 of 7
                                                                                     Invoice
                                                                                           Whitehall Industrial                                                  Invoice
                                                                                       Tel: (231) 893-1173 Fax:                                               LQ03429416
                                                                                                                                                              Invoice Date
                                                                                                                                                                4/30/2026
Work Order No: W4234874 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002691-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Frac Tank Cleaning                                                           Note Comments:

   Service      Service                                                                                Route       Payment      Payment                                                           Time
                                         Purchase Order                 Rep       Driver      Zone                                                  Truck No         Trailer No      Time In
    Date         Week                                                                                   No         Method        Terms                                                            Out
                                                                                                                                  Net 30
 4/13/2026          16                                                  BR2       DR17                            On Account                         311001
                                                                                                                                  Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                     Consolidated Manifest Number                Third Party Manifest Ref. No.                   Work Order Reference Numbers                 Number
                                                                                                                                                          BR002691-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste      Supply                                Price Per                   Subtotal of
Line No   Part No                                        Quoted Desc                                                                    Volume        Qty Billed                 Billing UOM
                                                                                                     Sched        Class      Volume                                  UOM                        Service
                                                                                                                                       Removed
                     Vacuum Tanker w/ Operator
  44         8321                                                                                       0                                              5.50000       $225.0000      Hour          $1,237.50


                     Laborer
  45         8320                                                                                       0                                              5.50000        $71.5000      Hour            $393.25


                     Laborer
  46         8320                                                                                       0                                              5.50000        $71.5000      Hour            $393.25


                     Overtime After 8 Hours or 5PM (Monday - Friday)
  47         8320                                                                                       0                                              8.00000        $33.0000      Hour            $264.00


                     Portable Hot Water Washer
  48         8324                                                                                       0                                              1.00000       $600.0000      Shift           $600.00


                     4 Gas Air Monitor
  49         8324                                                                                       0                                              1.00000       $175.0000      Day             $175.00


                     Confined Space Rescue Equipment
  50         8324                                                                                       0                                              1.00000       $375.0000      Each            $375.00


                     Targo (5 Gallon Bucket)
  51         8323                                                                                       0                                              1.00000       $375.0000      Each            $375.00


                     PPE
  52         8323                                                                                       0                                             160.49000        $1.0000      Each            $160.49


                     Fuel Surcharge
  53         3259                                                                                                                                      1.00000         $0.0000      Each            $438.57


                     EERF
  54         3260                                                                                                                                      1.00000         $0.0000      Each            $259.38



Work Order No: W4237858 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002696-A

                                                                                                                                                                                            Note
Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Loading, Transportation & Disposal of Emulsion/Water                                Comments:

   Service      Service                                                                                Route       Payment      Payment                                                           Time
                                         Purchase Order                 Rep       Driver      Zone                                                  Truck No         Trailer No      Time In
    Date         Week                                                                                   No         Method        Terms                                                            Out

 4/14/2026          16                                                  BR2        RL7                            On Account      Net 30             520078
                                                                                                                                  Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                     Consolidated Manifest Number                Third Party Manifest Ref. No.                   Work Order Reference Numbers                 Number
                                                             BOL #BR2692-A1                                                                               BR002696-A
                                                                                                                                        Waste
                                                                                                      Srv         Waste      Supply                                Price Per                   Subtotal of
Line No   Part No                                        Quoted Desc                                                                    Volume        Qty Billed                 Billing UOM
                                                                                                     Sched        Class      Volume                                  UOM                        Service
                                                                                                                                       Removed
                     Vacuum Tanker w/ Operator
  55         8321                                                                                       0                                              5.50000       $225.0000      Hour          $1,237.50


                     Disposal Fee, Emulsion/Water
  56         8331                                                                                       0                                  2513       2513.00000       $1.1000     Gallon         $2,764.30


                     Fuel Surcharge
  57         3259                                                                                                                                      1.00000         $0.0000      Each            $274.11


                     EERF
  58         3260                                                                                                                                      1.00000         $0.0000      Each            $220.10




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                                                   Page 122 of 209
                                                                                                                                                                                     Page 4 of 7
                                                                                        Invoice
                                                                                            Whitehall Industrial                                                Invoice
                                                                                        Tel: (231) 893-1173 Fax:                                             LQ03429416
                                                                                                                                                             Invoice Date
                                                                                                                                                               4/30/2026
Work Order No: W4245319 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002701-A

                                                                                                                                                                                            Note
Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel to Clean-out Vacuum Tanker from ER Response Emulsion Spill                              Comments:

   Service      Service                                                                                 Route       Payment      Payment                                                          Time
                                          Purchase Order                   Rep     Driver      Zone                                                 Truck No         Trailer No      Time In
    Date         Week                                                                                    No         Method        Terms                                                           Out
                                                                                                                                   Net 30
 4/15/2026          16                                                    BR2      DR17                            On Account                        1237
                                                                                                                                   Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                        Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                   Number
                                                                                                                                                          BR002701-A
                                                                                                                                         Waste
                                                                                                       Srv         Waste      Supply                               Price Per                   Subtotal of
Line No   Part No                                          Quoted Desc                                                                   Volume       Qty Billed                 Billing UOM
                                                                                                      Sched        Class      Volume                                 UOM                        Service
                                                                                                                                        Removed
                     Site Supervisor
  59         8321                                                                                        0                                            4.50000        $135.0000      Hour            $607.50


                     Vacuum Tanker w/ Operator
  60         8321                                                                                        0                                            4.50000        $225.0000      Hour          $1,012.50


                     Laborer
  61         8320                                                                                        0                                            4.50000         $71.5000      Hour            $321.75


                     Laborer
  62         8320                                                                                        0                                            4.50000         $71.5000      Hour            $321.75


                     Portable Hot Water Washer
  63         8324                                                                                        0                                            1.00000        $600.0000      Shift           $600.00


                     4 Gas Air Monitor
  64         8324                                                                                        0                                            1.00000        $175.0000      Day             $175.00


                     PPE
  65         8323                                                                                        0                                            99.00000         $1.0000      Each             $99.00


                     Fuel Surcharge
  66         3259                                                                                                                                     1.00000          $0.0000      Each            $358.83


                     EERF
  67         3260                                                                                                                                     1.00000          $0.0000      Each            $172.56



Work Order No: W4283735 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                      Ref: BR002712-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Transportation & Disposal of Hardened Emulsion from Emergency Response Emulsion Note
Spill Clean-up. Roll off Rental. (Rental Roll-offs Needed to Be Cleaned/Washed Before Returning)                                                                                        Comme

   Service      Service                                                                                 Route       Payment      Payment                                                          Time
                                          Purchase Order                   Rep     Driver      Zone                                                 Truck No         Trailer No      Time In
    Date         Week                                                                                    No         Method        Terms                                                           Out
                                                                                                                                   Net 30
 4/20/2026          17                                                    BR2       AW3                            On Account                       512014
                                                                                                                                   Days
                                                                                                                                                                                                Load
       Manifest Reference Numbers                        Consolidated Manifest Number              Third Party Manifest Ref. No.                Work Order Reference Numbers                   Number
                                                                                              Manifest #BR002712-A1 & #BR002712-
                                                    Disposal Ticket #1321413 & #1321603                       A2                                          BR002712-A
                                                                                                                                         Waste
                                                                                                       Srv         Waste      Supply                               Price Per                   Subtotal of
Line No   Part No                                          Quoted Desc                                                                   Volume       Qty Billed                 Billing UOM
                                                                                                      Sched        Class      Volume                                 UOM                        Service
                                                                                                                                        Removed
                     Six Axle Roll-Off Truck/Trailer w/ Operator
  68         8321                                                                                        0                                            16.75000       $225.0000      Hour          $3,768.75


                     Overtime After 8 Hours or 5PM (Monday - Friday)
  69         8320                                                                                        0                                            8.75000         $33.0000      Hour            $288.75


                     Disposal Fee, Emulsion/Sludge
  70         8331                                                                                        0                                  36.67     36.67000        $45.0000    Ton (US)        $1,650.15


                     Roll Off Rental
  71         8322                                                                                        0                                            16.00000        $45.0000      Day             $720.00


                     Roll Off Rental
  72         8322                                                                                        0                                            16.00000        $45.0000      Day             $720.00


                     Fuel Surcharge
  73         3259                                                                                                                                     1.00000          $0.0000      Each            $795.21


                     EERF
  74         3260                                                                                                                                     1.00000          $0.0000      Each            $393.12




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                                                   Page 123 of 209
                                                                                                                                                                                     Page 5 of 7
                                                                                         InvoiceWhitehall Industrial                                                Invoice
                                                                                            Tel: (231) 893-1173 Fax:                                             LQ03429416
                                                                                                                                                                 Invoice Date
                                                                                                                                                                   4/30/2026
Work Order No: W4283956 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                          Ref: BR002722-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Transportation & Disposal of Hardened Emulsion from Emergency Response Emulsion Note
Spill Clean-up. Roll off Rental. (Rental Roll-offs Needed to Be Cleaned/Washed Before Returning)                                                                                        Comme

   Service      Service                                                                                     Route       Payment      Payment                                                          Time
                                          Purchase Order                    Rep        Driver      Zone                                                 Truck No         Trailer No      Time In
    Date         Week                                                                                        No         Method        Terms                                                           Out
                                                                                                                                       Net 30
 4/22/2026          17                                                      BR2        LP14                            On Account                       512014
                                                                                                                                       Days
                                                                                                                                                                                                    Load
       Manifest Reference Numbers                        Consolidated Manifest Number                  Third Party Manifest Ref. No.                Work Order Reference Numbers                   Number
                                                            Disposal Ticket #1322135                      Manifest #BR002722-A1                               BR002722-A
                                                                                                                                             Waste
                                                                                                           Srv         Waste      Supply                               Price Per                   Subtotal of
Line No   Part No                                          Quoted Desc                                                                       Volume       Qty Billed                 Billing UOM
                                                                                                          Sched        Class      Volume                                 UOM                        Service
                                                                                                                                            Removed
                     Six Axle Roll-Off Truck/Trailer w/ Operator
  75         8321                                                                                            0                                            7.00000        $225.0000      Hour          $1,575.00


                     Disposal Fee, Emulsion/Sludge
  76         8331                                                                                            0                                  16.74     16.74000        $45.0000    Ton (US)          $753.30


                     Roll Off Rental
  77         8322                                                                                            0                                            18.00000        $45.0000      Day             $810.00


                     Fuel Surcharge
  78         3259                                                                                                                                         1.00000          $0.0000      Each            $332.33


                     EERF
  79         3260                                                                                                                                         1.00000          $0.0000      Each            $172.61



Work Order No: W4283981 Project: 0041367 City Of Muskegon - ER Spill Clean-Up                                                                                                          Ref: BR002728-A

Comments: City of Muskegon - Site: 2409 Roberts St. Muskegon, MI 49444. Provide Equipment/Personnel for Transportation & Disposal of Hardened Emulsion from Emergency Response                     Note
Emulsion Spill Clean-up. Roll off Rental.                                                                                                                                                          Comments

   Service      Service                                                                                     Route       Payment      Payment                                                          Time
                                          Purchase Order                    Rep        Driver      Zone                                                 Truck No         Trailer No      Time In
    Date         Week                                                                                        No         Method        Terms                                                           Out
                                                                                                                                       Net 30
 4/23/2026          17                                                      BR2        AW3                             On Account                       512014
                                                                                                                                       Days
                                                                                                                                                                                                    Load
       Manifest Reference Numbers                        Consolidated Manifest Number                  Third Party Manifest Ref. No.                Work Order Reference Numbers                   Number
                                                    Disposal Ticket #1322346 & #1322460          Manifest #BR002728-A1 & BR002728-A2                          BR002728-A
                                                                                                                                             Waste
                                                                                                           Srv         Waste      Supply                               Price Per                   Subtotal of
Line No   Part No                                          Quoted Desc                                                                       Volume       Qty Billed                 Billing UOM
                                                                                                          Sched        Class      Volume                                 UOM                        Service
                                                                                                                                            Removed
                     Six Axle Roll-Off Truck/Trailer w/ Operator
  80         8321                                                                                            0                                            6.50000        $225.0000      Hour          $1,462.50


                     Disposal Fee, Emulsion/Sludge
  81         8331                                                                                            0                                  32.81     32.81000        $45.0000    Ton (US)        $1,476.45


                     Roll Off Rental
  82         8322                                                                                            0                                            19.00000        $45.0000      Day             $855.00


                     Roll Off Rental
  83         8322                                                                                            0                                            19.00000        $45.0000      Day             $855.00


                     Fuel Surcharge
  84         3259                                                                                                                                         1.00000          $0.0000      Each            $308.59


                     EERF
  85         3260                                                                                                                                         1.00000          $0.0000      Each            $255.69




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                                                       Page 124 of 209
                                                                                                                                                                                         Page 6 of 7
                                                                             Invoice
                                                                                  Whitehall Industrial                                  Invoice
                                                                                Tel: (231) 893-1173 Fax:                             LQ03429416
                                                                                                                                     Invoice Date
                                                                                                                                       4/30/2026
 2% per month (24% per annum) late charge on balances over 30 days from date of invoice                                         Invoice Summary
                                                                                                            MI USA                 $0.00   Sub-Total          $79,244.71
                                                                                                                                           Total Tax               $0.00


                                                                                                                                             Total            $79,244.71
                                                                                                                                            (USD)


                                                                                                                                   93-1706214



                                                            Please detach and return stub with your payment



                                                                                                 Account Number: L000682384                Amount Due:     $79,244.71


                                                                                                  Invoice Number: LQ03429416               Amount Paid:




How to pay your bill:                                                  00000000 00000L000682384 0000 GFL48000LQ03429416 00007924471 7

Credit Card payments: call (231) 258-7142
                                                                                                                Cheque payable to GFL Environmental / Northern A-1
For Direct Deposit (EFT) Payments:                                                                              Industrial Services, LLC along with this stub
Please send your remittance information to
[email protected]                                                                                     Please Remit To:

Note: GFL does not accept E-Transfers as a form of                                                              GFL Environmental / Northern A-1 Industrial Services,
payment                                                                                                         LLC
                                                                                                                PO Box 1030
                                                                                                                Kalkaska, Michigan 49646
                                                                                                                Tel: (231) 258-9961 Fax:

                                                                                                                Email: [email protected]




Printed by amingee on 5/1/2026 9:46:32 AM                                                                                                         Page 125 of 209
                                                                                                                                                           Page 7 of 7
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026               Title: Beach St. Parking & Pedestrian Facility
                                                    Improvements

Submitted by: Todd Myers, Deputy Director of        Department: Public Works
Public Works

Brief Summary:
Staff requests authorization to enter into a contract with Dans Excavating in the amount of
$949,102.40 for the Beach Street Parking and Pedestrian Facility Improvements project.

Detailed Summary & Background:
Our engineering consultant, DLZ, solicited bids for the Beach Street Parking and Pedestrian Facility
Improvements Project. This project includes improvements to the angled parking between the
bathroom buildings, as well as a much improved and widened concrete sidewalk/pathway over the
same limits. The submitted low bid amount was from TBD Construction Services in the amount of
$893,130.80. After checking references, DLZ and staff recommend awarding the project to the
second low bidder, Dans Excavating, in the amount of $949,102.40. The project was budgeted at
$1.2M, so the recommended bid is well within budget.

Goal/Action Item:
2027 Goal 4: Financial Infrastructure

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                   Budgeted Item:
$949,102.40                                          Yes       X   No            N/A

Fund(s) or Account(s):                              Budget Amendment Needed:
482 (ARPA) Funds                                     Yes           No       X    N/A

Recommended Motion:
Move to authorize staff to enter into a contract with Dans Excavating in the amount of $949,102.40 for
the Beach Street Parking and Pedestrian Facility Improvements project.

Approvals:                                          Name the Policy/Ordinance Followed:
Immediate Division         X                        Purchasing Policy
Head
Information



                                                                                            Page 126 of 209
Technology
Other Division Heads


Communication          X
Legal Review




                           Page 127 of 209
June 1, 2026

Mr. Dan VanderHeide, P.E.
Director of Public Works
City of Muskegon
1350 E. Keating Avenue
Muskegon, MI 49442

RE:        Beach Street Parking and Pedestrian Improvements
           DLZ Project Number: 2247-7456-00

Dear Mr. VanderHeide,

DLZ Michigan, Inc. (DLZ) has reviewed all the bids submitted on Thursday, April 23, 2026, at 2:00 p.m. at the
Muskegon City Hall Clerk’s Office for the above-referenced project.

Five (5) bids were received, with five (5) being opened and read. Listed in order of low to high bidder are the
following tabulated bidders:
                                        COMPANY                                                               AS-READ                       AS TABULATED
    1       TBD Construction Services, Inc.                                              $                 893,147.90           $                893,130.80
    2       Dans Excavating Service, Inc.                                                $                 949,102.40           $                949,102.40
    3       Tridonn Construction Company                                                 $              1,064,310.78             $             1,062,909.10
    4       McCormick Sand, Inc.                                                         $              1,110,651.00            $              1,110,651.00
    5       Wadel Stabilization, Inc.                                                    $              1,125,575.25            $              1,125,575.25


            Engineers Estimate                                                                                                  $              1,010,910.50

DLZ has reviewed the bids submitted and identified tabulation errors in two bids; however, these errors did
not affect the bid ranking. Based on reference checks, the apparent low bidder was found to have limited
experience with projects of similar scope. Accordingly, DLZ recommends that the City of Muskegon award the
contract to the lowest responsible bidder, Dans Excavating Service, Inc., in the amount of $949,102.40. The
Bid Tabulation sheet is attached for reference.

Please feel free to call me if you have any questions about this information.




                950 W Norton Ave, Suite 207, Muskegon, MI 49441                OFFICE    231.780.3100         ONLINE    WWW.DLZ.COM


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                                                                                                                                                         Page 128 of 209
                                      Beach Street Parking and Pedestrian Facility
                                                                  Improvements
                                                               Recommendation
                                                                     Page 2 of 2


Sincerely,

               Digitally signed
               by Randy Parrett
 Randy Parrett Date:
               2026.06.01
               09:43:13-04'00'


Randy Parrett, P.E.
Department Manager



CC:       Todd Myers, Leigh Merrill

Attachments: Bid Tabulation




                                                                          Page 129 of 209
                                                                                                                                                            City of Muskegon
                                                                                                                                        Beach Street Parking and Pedestrian Facility Improvements
                                                                                                                                                                    DLZ PN: 2247-7456-00




Bid Opening: 4/23/2026 2:00 PM (local time)

Bid Tabulation                                                                                                          TBD Construction Services Inc.          Dans Excavating Service Inc.               Tridonn Construction Company               McCormick Sand Inc.                   Wadel Stabilization Inc.                       Engineer

    Item                                                                                         Estimated               Unit                                   Unit                                        Unit                                   Unit                                   Unit                                     Unit
                                            Description                                  Unit                                                 Amount                                    Amount                                 Amount                                Amount                                    Amount                                 Amount
     No.                                                                                          Quantity               Price                                  Price                                       Price                                  Price                                  Price                                    Price
      1      Mobilization, Max, 10%                                                      LSUM              1.00   $         76,000.00   $         76,000.00 $      94,000.00   $           94,000.00   $      107,583.12   $      107,583.12   $    111,000.00   $      111,000.00    $    112,000.00    $        112,000.00   $     91,900.00   $       91,900.00
      2      Curb and Gutter, Rem                                                          Ft            195.00   $             15.00   $          2,925.00 $           5.00   $              975.00   $           21.60   $        4,212.00   $          7.00   $        1,365.00    $         17.00    $          3,315.00   $         15.00   $        2,925.00
      3      Sidewalk, Rem                                                                Syd           1936.00   $              8.00   $         15,488.00 $           8.00   $           15,488.00   $           10.80   $       20,908.80   $         10.00   $       19,360.00    $          9.50    $         18,392.00   $         15.00   $       29,040.00
      4      Pavt, Rem, Modified                                                          Syd           4269.00   $             10.00   $         42,690.00 $           8.00   $           34,152.00   $           12.96   $       55,326.24   $         10.00   $       42,690.00    $         11.00    $         46,959.00   $         12.00   $       51,228.00
      5      Erosion Control, Silt Fence                                                   Ft           2558.00   $              4.50   $         11,511.00 $           5.00   $           12,790.00   $            3.24   $        8,287.92   $          2.00   $        5,116.00    $          5.00    $         12,790.00   $          3.00   $        7,674.00
      6      Project Cleanup                                                             LSUM              1.00   $          3,000.00   $          3,000.00 $       7,500.00   $            7,500.00   $       21,600.00   $       21,600.00   $     14,900.00   $       14,900.00    $     10,000.00    $         10,000.00   $      5,000.00   $        5,000.00
      7      Aggregate Base, 6 inch, 21AA                                                 Syd           4226.00   $             13.00   $         54,938.00 $          25.00   $          105,650.00   $           34.56   $      146,050.56   $         28.00   $      118,328.00    $         35.00    $        147,910.00   $         16.00   $       67,616.00
      8      Aggregate Base, 8 Inch, 21AA                                                 Syd           6435.00   $             17.00   $        109,395.00 $          22.00   $          141,570.00   $           22.68   $      145,945.80   $         32.00   $      205,920.00    $         30.00    $        193,050.00   $         18.00   $      115,830.00
      9      Geotextile, Separator                                                        Syd           4385.00   $              4.50   $         19,732.50 $           3.00   $           13,155.00   $            3.22   $       14,119.70   $          4.00   $       17,540.00    $          6.00    $         26,310.00   $          2.00   $        8,770.00
     10      Dr Structure Cover, Adj, Case 1                                               Ea              9.00   $            650.00   $          5,850.00 $         750.00   $            6,750.00   $          972.00   $        8,748.00   $      1,300.00   $       11,700.00    $        750.00    $          6,750.00   $        500.00   $        4,500.00
     11      HMA, 4EML                                                                    Ton            708.00   $            120.00   $         84,960.00 $         106.00   $           75,048.00   $          114.70   $       81,207.60   $        107.00   $       75,756.00    $        116.00    $         82,128.00   $        140.00   $       99,120.00
     12      HMA, 5EML                                                                    Ton            708.00   $            125.00   $         88,500.00 $         116.00   $           82,128.00   $          125.14   $       88,599.12   $        116.00   $       82,128.00    $        127.00    $         89,916.00   $        160.00   $      113,280.00
     13      Conc Pavt, Misc, Nonreinf, 6 inch                                            Syd            198.00   $             65.00   $         12,870.00 $          57.00   $           11,286.00   $           60.85   $       12,048.30   $         80.00   $       15,840.00    $         55.00    $         10,890.00   $        100.00   $       19,800.00
     14      Detectable Warning Surface                                                    Ft             50.00   $            125.00   $          6,250.00 $         100.00   $            5,000.00   $          108.00   $        5,400.00   $         35.00   $        1,750.00    $         50.00    $          2,500.00   $         70.00   $        3,500.00
     15      Sidewalk, Conc, 6 inch                                                        Sft          4822.00   $              7.45   $         35,923.90 $           6.50   $           31,343.00   $            6.76   $       32,596.72   $          9.00   $       43,398.00    $          7.00    $         33,754.00   $          9.00   $       43,398.00
     16      Sidewalk, Conc, 6 inch, Modified                                             Sft           6516.00   $              7.65   $         49,847.40 $           7.00   $           45,612.00   $            7.03   $       45,807.48   $         10.00   $       65,160.00    $          8.00    $         52,128.00   $         10.00   $       65,160.00
     17      Non-Motorized Pathway, Conc, 6 inch                                          Syd           3502.00   $             65.00   $        227,630.00 $          62.00   $          217,124.00   $           63.28   $      221,606.56   $         62.00   $      217,124.00    $         60.00    $        210,120.00   $         70.00   $      245,140.00
     18      Tree Fence, Protective                                                        Ft            310.00   $             10.00   $          3,100.00 $          15.00   $            4,650.00   $            8.85   $        2,743.50   $          8.00   $        2,480.00    $         25.00    $          7,750.00   $         15.00   $        4,650.00
     19      Delineator, Rem                                                               Ea             68.00   $              5.00   $            340.00 $          15.00   $            1,020.00   $           16.20   $        1,101.60   $         15.00   $        1,020.00    $         15.00    $          1,020.00   $          6.00   $          408.00
     20      Post, Rigid, Delineator                                                       Ea             50.00   $             35.00   $          1,750.00 $          35.00   $            1,750.00   $           37.80   $        1,890.00   $         35.00   $        1,750.00    $         35.00    $          1,750.00   $         32.00   $        1,600.00
     21      Post, Steel, 3 pound                                                          Ft            154.00   $              3.50   $            539.00 $          10.00   $            1,540.00   $           10.80   $        1,663.20   $         10.00   $        1,540.00    $         10.00    $          1,540.00   $          8.00   $        1,232.00
     22      Sign, Type III, Rem                                                           Ea             12.00   $              5.00   $             60.00 $          35.00   $              420.00   $           37.80   $          453.60   $         35.00   $          420.00    $         35.00    $            420.00   $         25.00   $          300.00
     23      Sign, Type IIIA                                                               Sft            29.00   $             25.00   $            725.00 $          40.00   $            1,160.00   $           43.20   $        1,252.80   $         40.00   $        1,160.00    $         40.00    $          1,160.00   $         20.00   $          580.00
     24      Pavt Mrkg, Ovly Cold Plastic, 6 inch, Crosswalk                               Ft            510.00   $              2.50   $          1,275.00 $           7.00   $            3,570.00   $            5.40   $        2,754.00   $          5.00   $        2,550.00    $          5.00    $          2,550.00   $          5.00   $        2,550.00
     25      Pavt Mrkg, Ovly Cold Plastic, Thru Arrow Sym                                  Ea              5.00   $            250.00   $          1,250.00 $         265.00   $            1,325.00   $          216.00   $        1,080.00   $        200.00   $        1,000.00    $        200.00    $          1,000.00   $        200.00   $        1,000.00
     26      Pavt Mrkg, Waterborne, for Rest Areas, Parks, and Lots, 4 inch, Blue          Ft            456.00   $              0.35   $            159.60 $           2.25   $            1,026.00   $            2.16   $          984.96   $          2.00   $          912.00    $          2.00    $            912.00   $          2.00   $          912.00
     27      Pavt Mrkg, Waterborne, for Rest Areas, Parks, and Lots, 4 inch, White         Ft           4138.00   $              0.35   $          1,448.30 $           2.10   $            8,689.80   $            1.08   $        4,469.04   $          1.00   $        4,138.00    $          1.00    $          4,138.00   $          1.00   $        4,138.00
     28      Pavt Mrkg, Waterborne, for Rest Areas, Parks, and Lots, 4 inch, Yellow        Ft            966.00   $              0.35   $            338.10 $           2.10   $            2,028.60   $            2.16   $        2,086.56   $          2.00   $        1,932.00    $          2.00    $          1,932.00   $          1.00   $          966.00
     29      Rem Spec Mrkg                                                                 Sft           974.00   $             10.00   $          9,740.00 $           5.00   $            4,870.00   $            2.70   $        2,629.80   $          2.50   $        2,435.00    $          2.50    $          2,435.00   $          5.00   $        4,870.00
     30      Pavt Mrkg, Waterborne, Handicap Sym, Blue                                     Ea              8.00   $            450.00   $          3,600.00 $          95.00   $              760.00   $           54.00   $          432.00   $         50.00   $          400.00    $         50.00    $            400.00   $        250.00   $        2,000.00
     31      Barricade, Type III, High Intensity, Double Sided, Lighted, Furn              Ea              4.00   $            250.00   $          1,000.00 $          95.00   $              380.00   $          102.60   $          410.40   $         95.00   $          380.00    $         95.00    $            380.00   $        150.00   $          600.00
     32      Barricade, Type III, High Intensity, Double Sided, Lighted, Oper              Ea              4.00   $             10.00   $             40.00 $           1.00   $                4.00   $            1.08   $            4.32   $          1.00   $            4.00    $          1.00    $              4.00   $          1.00   $            4.00
     33      Pedestrian Type II Barricade, Temp                                            Ea              3.00   $            250.00   $            750.00 $          95.00   $              285.00   $          102.60   $          307.80   $         95.00   $          285.00    $         95.00    $            285.00   $        150.00   $          450.00
     34      Minor Traf Devices                                                          LSUM              1.00   $          5,000.00   $          5,000.00 $       4,000.00   $            4,000.00   $        2,592.00   $        2,592.00   $     30,000.00   $       30,000.00    $     36,500.00    $         36,500.00   $      5,000.00   $        5,000.00
     35      Pavt Mrkg, Longit, 6 inch or Less Width, Rem                                  Ft            366.00   $             10.00   $          3,660.00 $           2.50   $              915.00   $            2.16   $          790.56   $          2.00   $          732.00    $          2.00    $            732.00   $          1.00   $          366.00
     36      Sign, Type B, Temp, Prismatic, Furn                                           Sft            67.25   $             15.00   $          1,008.75 $           7.00   $              470.75   $            7.56   $          508.41   $          7.00   $          470.75    $          8.00    $            538.00   $          5.00   $          336.25
     37      Sign, Type B, Temp, Prismatic, Oper                                           Sft            67.25   $              5.00   $            336.25 $           1.00   $               67.25   $            1.08   $           72.63   $          1.00   $           67.25    $          1.00    $             67.25   $          1.00   $           67.25
     38      Traf Regulator Control                                                      LSUM              1.00   $          5,000.00   $          5,000.00 $       8,500.00   $            8,500.00   $        1,134.00   $        1,134.00   $      5,400.00   $        5,400.00    $        650.00    $            650.00   $      2,000.00   $        2,000.00
     39      Audio Visual Record of Construction                                         LSUM              1.00   $          4,500.00   $          4,500.00 $       2,100.00   $            2,100.00   $       13,500.00   $       13,500.00   $      2,500.00   $        2,500.00    $        500.00    $            500.00   $      3,000.00   $        3,000.00

                                                                *Tabulation Correction                                Tabulated Total = $        893,130.80                    $          949,102.40                       $    1,062,909.10                     $     1,110,651.00                      $      1,125,575.25                     $    1,010,910.50
                                                                                                                                Rank =           1                                        2                                       3                                      4                                        5

                                                                                                                       As-Read Total = $         893,147.90                    $          949,102.40                       $    1,064,310.78                     $     1,110,651.00                      $      1,125,575.25
                                                                                                                                                 1                                        2                                       3                                         4                                     5




                                                                                                                                                                               1 of 1

                                                                                                                                                                                                                                                                                                                                             Page 130 of 209
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026                 Title: Approval of the FY 2026-27 Budget

Submitted by: Jonathan Seyferth, City Manager         Department: Manager's Office

Brief Summary:
Presenting the Fiscal Year 2027 budget- the total appropriation across all funds is $132.9 million, with
$45.9 million appropriated from the general fund

Detailed Summary & Background:
Staff distributed the Fiscal Year 2027 budget on May 2026. We held our public hearing on May 26,
2026, and further discussion took place at our work session on Monday, June 8. The staff recommends
approval of the FY 2027 budget as presented, with total appropriations of $132.9 million, including
$45.9 million in the general fund. The General Fund budget is presented with a budget deficit of
$705,256.

Goal/Action Item:
2027 Goal 4: Financial Infrastructure

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                     Budgeted Item:
$132,952,181 across all funds, $45,942,097 in the      Yes       X    No           N/A           ss
general fund

Fund(s) or Account(s):                                Budget Amendment Needed:
All City Funds                                         Yes            No      X    N/A

Recommended Motion:
Move to approve the attached budget resolution for Fiscal Year 2026-27, which begins on July 1,
2026

Approvals:                                            Name the Policy/Ordinance Followed:
Immediate Division          x
Head
Information
Technology
Other Division Heads        x
Communication               x


                                                                                             Page 131 of 209
Legal Review




               Page 132 of 209
                                   CITY OF MUSKEGON
                              RESOLUTION OF APPROPRIATION
                                     2026-27 BUDGET


        WHEREAS, the City Manager has submitted a proposed Budget for 2026-27 in accordance
with City Ordinance and Michigan Public Act 621 of 1978 known as the "Uniform Budgeting and
Accounting Act"; and,
        WHEREAS, the 2026-27 proposed Budget has been reviewed by the City Commission
following a public hearing for which due notice was given; NOW, THEREFORE, BE IT RESOLVED
that the Budget for the City of Muskegon for the fiscal year beginning July 1, 2026 is hereby
determined and adopted as follows:

                                      GENERAL FUND
 FUND
ACTIVITY
NUMBER            FUND/ACTIVITY NAME                                 AMOUNT

 101-101         City Commission                                       $158,919
 101-103         City Promotions & Public Relations                    $115,250
 101-266         City Attorney                                         $436,800
 101-172         City Manager                                          $875,320
 101-252         Support to Outside Agencies                           $554,232
 101-215         City Clerk & Elections                                $792,135
 101-269         Employee Relations                                    $355,222
 101-202         Finance Administration                                $876,906
 101-203         Pension Administration                              $5,020,925
 101-205         Income Tax Administration                             $632,093
 101-257         Assessing Services                                    $463,000
 101-228         Information Systems Administration                    $882,647
 101-253         City Treasurer                                        $850,696
 101-272         Insurance Premiums                                    $444,535
 101-906         Debt Retirement                                     $1,055,083
 101-999         Transfers to Other Funds                              $835,156
 101-301         Police                                             $13,379,813
 101-336         Fire                                                $5,720,987
 101-340         Central Fire                                          $122,000
 101-387         Building Code Inspections and Enforcement           $2,156,756
 101-265         City Hall Maintenance                                 $597,887
 101-446         Community Event Support/Downtown BID                  $113,256
 101-448         Streetlighting                                        $360,000
 101-521         Sanitation                                          $3,061,083
 101-550         Stormwater Management                                  $17,000
 101-567         Cemeteries Maintenance                                $596,324
 101-772         Parking Operations                                    $493,667
 101-751         Recreation                                            $428,439
 101-770         Parks Maintenance                                   $2,903,163




                                                                                        Page 133 of 209
 101-757        McGraft Park Maintenance                            $143,098
 101-771        Forestry                                             $49,352
 101-701        Planning, Zoning and Economic Development         $1,098,353
                Major Capital Improvements
 101-901                                                            $352,000
                Grand Total General Fund Appropriations          $45,942,097




                                OTHER BUDGETED FUNDS

 FUND
ACTIVITY
NUMBER           FUND/ACTIVITY NAME                                    AMOUNT

202,204           Major Streets and State Trunklines                 $11,436,086
203               Local Streets                                      $2,380,370




   BE IT FURTHER RESOLVED that the revenues and other financing sources (including use of
prior year balances) for Fiscal Year 2026-27 are estimated as follows:


                                     GENERAL FUND

                    FUND/ACTIVITY NAME                                  AMOUNT

                  Taxes                                              $ 24,978,000
                  State Revenues                                        6,520,985
                  Fees                                                  3,797,253
                  All Building Permits                                1,636,000   Beach
Parking           1,300,000
                  Public Safety Revenue                                   794,000
                  Operating Transfers In                                  180,000
                  Indirect Costs                                        2,317,192
                  Other Revenue                                         3,713,411



                  Total General Fund Revenue                           $45,236,841




                                                                                     Page 134 of 209
                                 OTHER BUDGETED FUNDS

 FUND
ACTIVITY
NUMBER           FUND/ACTIVITY NAME                                     AMOUNT

202,204            Major Streets and State Trunklines                   $8,556,703
203                Local Streets                                       $2,421,000




BE IT FURTHER RESOLVED that the operating expense projections for the following non-budget
funds are hereby approved:


 FUND
ACTIVITY
NUMBER            FUND/ACTIVITY NAME                                    AMOUNT

231                Lakeside Corridor Improvement Authority                 25,000
232                Harbor West Brownfield                                   1,361
233                Scattered Housing Brownfield Fund                      428,393
234                Brownfield Redevelopment Authority (Pigeon Hill)        15,292
235                Brownfield Authority (Betten)                           87,326
238                Sweetwater Brownfield                                   65,720
241                Adelaide Pointe Brownfield                             430,810
242                Highpoint Flats Brownfield                              93,967
252                Farmers Market & Kitchen 242                         1,156,336
254                Trinity Health Arena                                 2,374,046
285                Tree Replacement                                         7,500
394                Downtown Development Auth DS                           576,409
395                TIFA Debt Service                                       50,000
420                Convention Center                                      943,500
445                Public Improvement Fund                                523,000
447                Housing                                             10,000,000
482                State Grants Fund                                    3,600,000
590                Sewer                                               11,729,492
591                Water                                               23,038,362
594                Marina/Launch Ramp                                   1,718,659
661                Equipment                                            5,380,600
642                Public Service Building                              2,407,885
643                Engineering Services Fund                            1,131,870
677                General Insurance Fund                               7,408,100




                                                                                     Page 135 of 209
   BE IT FURTHER RESOLVED, that there is hereby appropriated for said fiscal year the several
amounts set forth above which, pursuant to the "Uniform Budget and Accounting Act", define the
City of Muskegon's appropriation centers, and

  BE IT FURTHER RESOLVED, that the City Manager is hereby empowered to transfer
appropriations within appropriation centers, and

   BE IT FURTHER RESOLVED, that there is hereby levied a general tax as herein fixed on each
dollar of taxable valuation for the purposes herein outlined, said levy to be applied on all taxable
real and personal property in the City of Muskegon as set forth in the assessment roll dated May
2026:



 PURPOSE                                                                MILLAGE (MILLS)

                     General Operating                                             9.0985
                     Sanitation Service                                            2.7294
                     Promotion                                                      .0505

                     Total                                                        11.8784

At a meeting of the City Commission of the City of Muskegon, on the _____ Day of June , the
foregoing resolution was moved for adoption by__________________.            Commissioner
___________________ supported the motion.

Resolution declared adopted.


_________________________________                          __________________________________
Mayor                                                      City Clerk




                                                                                               Page 136 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                 24-25           25-26            25-26             26-27
                                                             Activity  Amended Budget         Activity       Recommended
GL Number             Description
Fund: 101 GENERAL
5400                  OTHER EXPENSES                         21,324.66
101-000-402           PROPERTY TAX                        7,246,381.80    7,600,000.00    6,749,754.45       8,008,000.00
101-000-432           IN LIEU OF TAX                        197,375.86      197,000.00                         215,000.00
101-000-436           PROPERTY TAX SANITATION             2,160,016.30    2,250,000.00    2,012,707.03       2,370,000.00
101-000-437           IFT/CFT TAX                           244,381.17      253,000.00                         253,000.00
101-000-438           INCOME TAX                         13,024,300.93   13,500,000.00    11,593,247.37     14,000,000.00
101-000-439           MARIJUANA TAX                         700,753.80      675,000.00       540,171.00        600,000.00
101-000-451           SPECIAL ASSESSMENTS                   181,582.05      188,700.00       135,118.31
101-000-476-004202    BUSINESS LICENSES & PERMITS            39,505.39       42,000.00        69,770.00         45,000.00
101-000-476-004217    SHORT TERM RENTALS                    116,830.00      105,810.00       113,460.00        120,000.00
101-000-477           CABLE TV LICENSES OR FEES             266,262.28      234,000.00       117,762.30        200,000.00
101-000-478           LIQUOR LICENSES & TAX REBATE           46,281.95       66,000.00        43,383.30         60,000.00
101-000-480-004207    CEMETERY-BURIAL PERMITS                65,115.00       65,000.00        43,810.00         55,000.00
101-000-480-004649    CEMETERY-MISC. INCOME                  23,457.74       25,000.00        12,436.79         20,000.00
101-000-480-004657    COLUMBARIUM NICHE                       2,310.00        2,000.00         2,696.50          2,000.00
101-000-481           BUILDING PERMITS                    1,405,005.63    1,350,000.00     1,123,796.16      1,100,000.00
101-000-482           ELECTRICAL PERMITS                    192,563.81      220,000.00       193,215.00        175,000.00
101-000-483           PLUMBING PERMITS                      139,707.75      250,000.00       227,239.50        200,000.00
101-000-484           HEATING PERMITS                       131,080.19      161,000.00       149,997.96        161,000.00
101-000-485           DEVELOPMENT PERMIT FEE                  5,430.00        4,000.00         3,710.00          4,000.00
101-000-486           RENTAL PROPERTY REGISTRATION          371,730.00      410,000.00       370,855.00        410,000.00
101-000-487           TEMPORARY LIQUOR LICENSE                4,810.00        5,000.00         2,560.00          5,000.00
101-000-488           MARIHUANA FACILITIES LICENSE          155,000.00      150,000.00       100,000.00        135,000.00
101-000-495           VACANT BUILDING FEE                       700.00       10,000.00          (600.00)        10,000.00
101-000-502           FEDERAL GRANTS                        788,724.04      418,089.00       359,226.46        457,910.00
101-000-540           STATE GRANTS                          389,649.06      600,000.00       152,838.56        158,217.00
101-000-542           STATE REPLACEMENT REV FOR PPT         885,997.08      840,000.00       364,486.60        840,000.00
101-000-549           STATE CVTRS/EVIP PAYMENTS           1,398,221.00    1,510,000.00       725,741.00      1,450,000.00
101-000-569           STATE GRANTS OTHER                                     24,000.00        48,022.32        292,768.00
101-000-574           STATE SALES TAX CONSTITUTIONAL     3,971,908.00     3,925,000.00     2,018,608.00      3,780,000.00
101-000-603           CITY SERVICE FOR ENTERPRISE FUND     557,046.00       575,427.00       479,522.60        594,416.00
101-000-604           TAX COLLECTION FEE                   480,373.74       485,000.00       456,679.70        535,000.00
101-000-606-004604    GARBAGE COLLECTION                    86,095.36        95,000.00        77,645.13         90,000.00
101-000-607-004759    STORM WATER FEES                      14,000.00        19,000.00        20,000.00         16,000.00
101-000-608           COURT FEES                            56,168.41        65,000.00        34,731.38         65,000.00
101-000-614-004617    REIMBURSEMENT INCOME                     600.00         6,500.00           350.00
101-000-615-004615    POLICE DEPARTMENT INCOME             103,477.68        87,500.00        55,866.84         87,500.00
101-000-615-004648    FALSE ALARM FEES/POLICE                6,495.00         6,500.00         3,900.00          6,500.00
101-000-615-004806    BIKE/PROPERTY AUCTIONS-POLICE            393.65         1,000.00        12,216.77          5,000.00
101-000-616           FIRE PROTECTION-STATE PROP            96,111.80        97,000.00        96,892.51         97,000.00
101-000-617           ZONING & ENCROACHMENT FEES            45,780.00        35,000.00         9,700.00         15,000.00
101-000-618-004622    MISC. CLERK FEES                       1,790.10         3,000.00         1,244.24          2,000.00
101-000-618-004634    PASSPORTS                             65,390.00        80,000.00        49,065.00         70,000.00
101-000-620-004619    MISC. SALES AND SERVICES              22,817.98        20,000.00        32,373.33         35,000.00
101-000-620-004660    MISC RECREATION INCOME                64,430.34        34,000.00         9,433.56         15,000.00
101-000-626-004631    REIMBURSEMENT SCHOOL OFFICER          69,321.79        81,000.00        73,989.28         81,000.00
101-000-626-004659    CODE ENFORCEMENT LABOR                26,509.00        45,000.00        53,084.00         45,000.00
101-000-629           REIMBURSEMENT ELECTIONS              102,514.95         5,200.00         5,118.24        180,000.00
101-000-630           INDIRECT COST ALLOCATION           2,134,808.04     2,116,735.00     1,763,945.70      2,317,192.00
101-000-631           PROCUREMENT CARD REBATE               62,718.13        70,000.00                          65,000.00
101-000-633           SPECIAL EVENTS REIMBURSEMENT          55,247.60        70,000.00        66,984.96         70,000.00
101-000-633-092031    SPECIAL EVENTS REIMBURSEMENT                                                              20,000.00
101-000-634           CEMETERY SALE OF LOTS                 32,090.00         30,000.00       23,458.13         25,000.00
101-000-636           REIMBURSEMENT LOT CLEAN UP             5,850.00
101-000-640           TAX ABATEMENT APPLICATION FEES         7,250.00          8,500.00       11,022.00            8,500.00
101-000-642-004654    FIRE RESPONSE FEE                      2,530.00          2,500.00        2,085.00            2,500.00
101-000-643-004625    MISC. TREAS. FEES                     58,415.64         60,000.00       18,729.69           60,000.00
101-000-643-004818    RECOVERY OF BAD DEBT                     761.26                           (761.26)
101-000-645           FISHERMANS LANDING REIMBURSEMENT      26,091.38       26,000.00         33,853.75         28,000.00
101-000-647-004635    START UP CHARGE/REFUSE                 6,875.00        7,000.00          5,510.00          7,000.00
101-000-647-004636    REFUSE BAG & BULK SALES               42,780.30       40,000.00         35,889.00         43,000.00
101-000-647-004638    MISC. SALES CHARGE/REFUSE            550,774.78      543,000.00        461,739.80        618,000.00
101-000-651           ADMINISTRATION FEES                  325,500.00      336,241.00        280,200.80        347,337.00
101-000-652-004655    PAID PARKING - BEACH               1,075,325.08    1,300,000.00        682,120.00      1,300,000.00
101-000-656           TRAFFIC FINES & FEES                 320,335.81      350,000.00        276,830.65        350,000.00
101-000-657-004202    DELINQUENT FEES                        4,300.00        5,000.00          2,000.00          5,000.00
101-000-657-004702    DELINQUENT FEES                       25,949.38       23,000.00         30,214.61         23,000.00
101-000-657-004704    PENALTIES/INTEREST/FINES              21,622.48       20,000.00         18,457.63         22,000.00
101-000-657-004706    LATE FEE ON INVOICES OVER 45 DAY                       2,000.00
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                                                                                                           Page 137 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                 24-25           25-26             25-26             26-27
                                                             Activity  Amended Budget          Activity       Recommended
GL Number             Description
Fund: 101 GENERAL
101-000-657-004708    LATE FEE ON RENTAL REGISTRATION       27,433.00          35,000.00       11,505.00        10,000.00
101-000-657-004751    CIVIL INFRACTIONS                     18,785.00          20,000.00       12,495.00        18,500.00
101-000-657-004802    REIMB:DEMOS AND BOARD-UPS             23,140.20          10,000.00        3,919.00         5,000.00
101-000-657-004803    CDBG PROGRAM REIMBURSEMENTS          232,807.84         200,000.00      200,000.00       180,000.00
101-000-659-004656    SITE PLAN REVIEW                       8,750.00           9,000.00        5,150.00         7,000.00
101-000-659-004658    IMPOUND FEES                          26,850.00          30,000.00       20,777.45        25,000.00
101-000-659-004679    CODE ENFORCEMENT ADMIN                17,740.00          30,000.00       20,600.00        25,000.00
101-000-665-004701    INCOME TAX-PENALTY & INTEREST        294,018.62         275,000.00      233,402.87       298,000.00
101-000-665-004703    INTEREST/LATE INVOICES                 6,162.67                             451.79         1,000.00
101-000-665-004970    INTEREST INCOME                    1,031,580.14         900,000.00      432,449.46       800,000.00
101-000-667-004669    PARK RENTALS                          47,297.40          65,000.00       60,396.11        70,000.00
101-000-667-004670    PICNIC SHELTER                         5,205.00           3,000.00           50.00
101-000-667-004671    MCGRAFT PARK                         109,740.00         126,000.00      126,003.63       126,000.00
101-000-667-004673    RENTAL - CENTRAL DISPATCH            340,930.72         465,100.00      388,030.90       465,636.00
101-000-667-004674    RENTAL - CITY HALL                    30,647.89          59,000.00       49,725.00        60,565.00
101-000-669           GAIN ON INVESTMENT                   324,689.75         200,000.00      108,317.24       200,000.00
101-000-671           LAND LEASE BILLBOARDS                 12,000.00          12,000.00        4,000.00        12,000.00
101-000-674-004805    CONTRIBUTIONS                         18,210.31          55,000.00       42,254.11        40,000.00
101-000-674-004821    CONTRIBUTIONS/GRANTS                 136,861.15          15,800.00       17,970.27        30,000.00
101-000-674-004825    CONTRIBUTIONS - VETERAN'S PARK M      24,673.05          50,000.00       13,876.78        50,000.00
101-000-674-004828    DONATION - POLICE DEPT                15,862.62           3,500.00        1,271.79         3,500.00
101-000-675           COMMUNITY FOUNDATION GRANT - MCG      11,365.53          11,500.00       13,531.98        14,000.00
101-000-677-004808    SALE OF PROPERTY AND EQUIPMENT            76.78
101-000-681           DOWNTOWN SOCIAL DISTRICT               2,758.87           2,800.00        1,500.00           2,800.00
101-000-683-004820    MARIHUANA CONTRIBUTIONS                1,100.00           1,000.00          100.00
101-000-684-004800    MISC. & SUNDRY                       288,658.40         200,000.00      157,115.77       220,000.00
101-000-692-004661    LEASE GREAT LAKES NAVAL MEMORIAL                         10,000.00                        15,000.00
101-000-699-200000    OP. TRANS FROM SPECIAL REVENUE        265,357.00        274,634.00
101-000-699-300000    OP. TRANS FROM DEBT SERVICE           180,000.04        180,000.00       41,666.70       180,000.00
101-000-699-400000    OP. TRANS FROM CAPITAL PROJECTS        34,663.22
101-000-699-800000    OPERATING TRANSFERS IN PERPETUAL                        440,440.00
  Total Department :                                     44,229,662.05    45,515,476.00    34,424,667.50     45,236,841.00
CITY COMMISSION
5100                  SALARIES & BENEFITS                    87,590.34        88,156.00        73,214.63           93,872.00
5300                  CONTRACTUAL SERVICES                   37,884.11        33,180.00        21,971.32           28,815.00
5200                  SUPPLIES                               14,207.47        19,190.00        21,553.19           20,552.00
5400                  OTHER EXPENSES                          7,512.68         8,000.00         8,212.34           11,000.00
5700                  CAPITAL OUTLAYS                         1,354.73         5,100.00         1,527.70            4,680.00
  Total Department CITY COMMISSION:                       (148,549.33)     (153,626.00)     (126,479.18)      (158,919.00)
CITY PROMOTIONS & PUBLIC RELATIONS
5300                CONTRACTUAL SERVICES                     89,491.62        85,073.00        75,312.46           87,150.00
5200                SUPPLIES                                 12,752.03        13,900.00        13,836.08           24,100.00
5400                OTHER EXPENSES                              920.62         2,500.00         1,741.71            4,000.00
  Total Department CITY PROMOTIONS & PUBLIC RELATI        (103,164.27)     (101,473.00)       (90,890.25)     (115,250.00)
MANAGERS OFFICE
5100                  SALARIES & BENEFITS                   724,990.90        779,433.00      603,867.16       789,666.00
5300                  CONTRACTUAL SERVICES                  135,579.95         91,025.00      103,280.80        50,654.00
5200                  SUPPLIES                               11,592.19         11,430.00       12,081.29         7,500.00
5400                  OTHER EXPENSES                         16,620.08         22,190.00       15,690.84        17,100.00
5700                  CAPITAL OUTLAYS                         9,935.06         18,300.00        8,901.89        10,400.00
  Total Department MANAGERS OFFICE:                       (898,718.18)     (922,378.00)     (743,821.98)      (875,320.00)
FINANCE ADMINSTRATION
5100                SALARIES & BENEFITS                     736,372.25        810,508.00      587,695.60       754,368.00
5300                CONTRACTUAL SERVICES                     94,656.44         99,400.00       84,636.92       105,000.00
5200                SUPPLIES                                  3,880.80          4,000.00        2,226.92         3,700.00
5400                OTHER EXPENSES                            1,825.48          2,650.00        1,277.57         6,750.00
5700                CAPITAL OUTLAYS                           8,052.26         22,500.00        7,218.11         7,088.00
  Total Department FINANCE ADMINSTRATION:                 (844,787.23)     (939,058.00)     (683,055.12)      (876,906.00)
PENSION ADMINISTRATION
5100                SALARIES & BENEFITS                  3,886,523.76     4,522,748.00     3,766,897.10       5,020,925.00
  Total Department PENSION ADMINISTRATION:               (3,886,523.76)   (4,522,748.00)   (3,766,897.10)    (5,020,925.00)
INCOME TAX
5100                  SALARIES & BENEFITS                   421,839.34        425,389.00      330,245.93       444,293.00
5300                  CONTRACTUAL SERVICES                  162,235.93        161,483.00      114,400.94       162,075.00
5200                  SUPPLIES                               25,825.41         19,500.00       20,342.10        20,500.00
06/01/2026 03:08 PM                                                                               Page:     2/36

                                                                                                            Page 138 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26             25-26            26-27
                                                            Activity  Amended Budget          Activity      Recommended
GL Number             Description
Fund: 101 GENERAL
INCOME TAX
5400                  OTHER EXPENSES                           56.69           2,500.00          409.95            800.00
5700                  CAPITAL OUTLAYS                       5,243.99           1,000.00        1,994.34          4,425.00
  Total Department INCOME TAX:                           (615,201.36)     (609,872.00)     (467,393.26)     (632,093.00)
CITY CLERK
5100                  SALARIES & BENEFITS                 634,850.71          595,279.00     519,910.15      579,868.00
5300                  CONTRACTUAL SERVICES                 45,377.57          100,953.00      73,755.80       82,650.00
5200                  SUPPLIES                             78,154.75           88,900.00      76,324.93       94,600.00
5400                  OTHER EXPENSES                        4,934.50            8,900.00       7,074.43       11,600.00
5700                  CAPITAL OUTLAYS                      67,976.61            6,050.00       6,195.20       23,417.00
  Total Department CITY CLERK:                           (831,294.14)     (800,082.00)     (683,260.51)     (792,135.00)
INFORMATION SYSTEMS ADMINISTRATION
5100                SALARIES & BENEFITS                   542,010.05          610,248.00     457,254.96      534,877.00
5300                CONTRACTUAL SERVICES                  231,762.11          157,270.00     151,224.39      225,270.00
5200                SUPPLIES                                  601.35            2,250.00          26.99          750.00
5400                OTHER EXPENSES                          1,935.53           15,600.00          52.16       15,000.00
5700                CAPITAL OUTLAYS                        88,438.61          141,200.00     154,461.74      106,750.00
  Total Department INFORMATION SYSTEMS ADMINISTRAT       (864,747.65)     (926,568.00)     (763,020.24)     (882,647.00)
CONTINGENCY
5400                  OTHER EXPENSES                       39,136.91
  Total Department CONTINGENCY:                           (39,136.91)              0.00           0.00              0.00
CONTRIBUTIONS
5300                  CONTRACTUAL SERVICES                462,564.71          358,936.00     245,479.57      554,232.00
  Total Department CONTRIBUTIONS:                        (462,564.71)     (358,936.00)     (245,479.57)     (554,232.00)
CITY TREASURER
5100                  SALARIES & BENEFITS                 499,760.21          576,859.00     395,340.62      600,146.00
5300                  CONTRACTUAL SERVICES                 74,794.50           84,458.00      53,101.39       89,600.00
5200                  SUPPLIES                             86,208.53          147,750.00      99,182.35      150,400.00
5400                  OTHER EXPENSES                        3,032.36            3,500.00       1,688.25        5,800.00
5700                  CAPITAL OUTLAYS                       3,975.79            4,900.00       2,141.81        4,750.00
  Total Department CITY TREASURER:                       (667,771.39)     (817,467.00)     (551,454.42)     (850,696.00)
CITY ASSESSOR
5100                  SALARIES & BENEFITS                   2,655.39            3,000.00       2,913.97        3,000.00
5300                  CONTRACTUAL SERVICES                456,576.05          448,000.00     336,057.94      460,000.00
5400                  OTHER EXPENSES                          120.00                             455.37
  Total Department CITY ASSESSOR:                        (459,351.44)     (451,000.00)     (339,427.28)     (463,000.00)
CITY HALL MAINTENANCE
5100                SALARIES & BENEFITS                   197,336.79          213,021.00     170,762.42      236,412.00
5300                CONTRACTUAL SERVICES                  250,303.89          271,128.00     219,603.38      304,875.00
5200                SUPPLIES                               30,584.92           28,600.00      13,813.08       28,600.00
5700                CAPITAL OUTLAYS                        48,266.55           20,000.00      27,779.56       28,000.00
  Total Department CITY HALL MAINTENANCE:                (526,492.15)     (532,749.00)     (431,958.44)     (597,887.00)
CITY ATTORNEY
5300                  CONTRACTUAL SERVICES                622,307.91          450,000.00     498,329.23      436,800.00
5200                  SUPPLIES                              1,391.00                           1,126.00
  Total Department CITY ATTORNEY:                        (623,698.91)     (450,000.00)     (499,455.23)     (436,800.00)
CIVIL SERVICE
5100                  SALARIES & BENEFITS                  99,213.04          101,335.00      79,842.84      124,072.00
5300                  CONTRACTUAL SERVICES                191,949.51          224,703.00     184,204.75      198,200.00
5200                  SUPPLIES                              1,102.58            2,750.00       1,158.74        2,550.00
5400                  OTHER EXPENSES                       13,790.03           51,600.00      16,457.94       30,400.00
5700                  CAPITAL OUTLAYS                       1,637.34
  Total Department CIVIL SERVICE:                        (307,692.50)     (380,388.00)     (281,664.27)     (355,222.00)
INSURANCE SERVICES
5300                  CONTRACTUAL SERVICES                653,399.54          411,229.00     444,535.10      444,535.00
  Total Department INSURANCE SERVICES:                   (653,399.54)     (411,229.00)     (444,535.10)     (444,535.00)
POLICE DEPARTMENT
5100                  SALARIES & BENEFITS              10,781,980.69    12,161,900.00      8,970,756.24    11,661,327.00
5300                  CONTRACTUAL SERVICES              1,363,595.51     1,400,019.00      1,341,916.26     1,409,929.00
5200                  SUPPLIES                            160,313.52       115,400.00        112,179.43       120,701.00
5400                  OTHER EXPENSES                      117,456.81       115,317.00         88,917.50       107,230.00
5700                  CAPITAL OUTLAYS                      82,037.77        35,730.00         43,955.23        80,626.00

06/01/2026 03:08 PM                                                                              Page:    3/36

                                                                                                          Page 139 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26                25-26            26-27
                                                             Activity  Amended Budget             Activity      Recommended
GL Number             Description
Fund: 101 GENERAL
POLICE DEPARTMENT
  Total Department POLICE DEPARTMENT:                  (12,505,384.30)   (13,828,366.00)     (10,557,724.66) (13,379,813.00)
FIRE DEPARTMENT
5100                  SALARIES & BENEFITS                3,914,983.93     4,602,127.00        3,592,305.82      4,908,194.00
5300                  CONTRACTUAL SERVICES                 201,034.00       241,902.00          269,798.14        256,999.00
5200                  SUPPLIES                             228,924.73       184,213.00          178,620.23        192,543.00
5400                  OTHER EXPENSES                        27,017.16        32,050.00           13,251.88         27,500.00
5900                  OTHER FINANCING USES                 456,799.64       461,718.00          304,471.76        241,654.00
5700                  CAPITAL OUTLAYS                       97,572.73        37,328.00           13,080.34         94,097.00
  Total Department FIRE DEPARTMENT:                     (4,926,332.19)   (5,559,338.00)      (4,371,528.17)    (5,720,987.00)
NEW CENTRAL FIRE STATION
5300                CONTRACTUAL SERVICES                   121,397.18          111,842.00       120,871.59       122,000.00
  Total Department NEW CENTRAL FIRE STATION:              (121,397.18)     (111,842.00)        (120,871.59)     (122,000.00)
BUILDING INSPECTIONS
5300                CONTRACTUAL SERVICES                 2,226,218.02     2,028,655.00        1,926,433.89      2,156,436.00
5200                SUPPLIES                                 2,226.08                               310.85            320.00
5700                CAPITAL OUTLAYS                            912.00                               700.00
  Total Department BUILDING INSPECTIONS:                (2,229,356.10)   (2,028,655.00)      (1,927,444.74)    (2,156,756.00)
COMMUNITY EVENT SUPPORT/DOWNTOWN BID
5100                SALARIES & BENEFITS                     29,938.51          39,093.00         29,445.94           48,591.00
5300                CONTRACTUAL SERVICES                    70,067.96          51,390.00         33,339.38           64,665.00
5200                SUPPLIES                                                                        117.87
  Total Department COMMUNITY EVENT SUPPORT/DOWNTOW        (100,006.47)         (90,483.00)      (62,903.19)     (113,256.00)
STREET LIGHTING
5300                  CONTRACTUAL SERVICES                 394,979.87          370,000.00       287,810.28       360,000.00
  Total Department STREET LIGHTING:                       (394,979.87)     (370,000.00)        (287,810.28)     (360,000.00)
SANITATION
5100                  SALARIES & BENEFITS                   44,938.06        35,970.00           29,600.03         42,302.00
5300                  CONTRACTUAL SERVICES               2,781,560.55     2,804,531.00        2,037,053.60      3,003,781.00
5200                  SUPPLIES                              13,907.92        15,000.00           11,218.51         15,000.00
  Total Department SANITATION:                          (2,840,406.53)   (2,855,501.00)      (2,077,872.14)    (3,061,083.00)
STORM WATER MANAGEMENT
5300                CONTRACTUAL SERVICES                    13,632.27          23,750.00         20,909.05           17,000.00
  Total Department STORM WATER MANAGEMENT:                 (13,632.27)         (23,750.00)      (20,909.05)      (17,000.00)
CEMETERIES
5100                  SALARIES & BENEFITS                  134,647.69          176,067.00        84,466.96       131,409.00
5300                  CONTRACTUAL SERVICES                 397,850.89          406,559.00       298,970.06       421,715.00
5200                  SUPPLIES                              19,401.02           20,967.00        18,525.65        19,650.00
5400                  OTHER EXPENSES                           339.50              500.00           529.88           550.00
5700                  CAPITAL OUTLAYS                            1.48              524.00         3,099.27        23,000.00
  Total Department CEMETERIES:                            (552,240.58)     (604,617.00)        (405,591.82)     (596,324.00)
PLANNING
5100                  SALARIES & BENEFITS                  811,204.66          829,663.00       617,914.77       826,653.00
5300                  CONTRACTUAL SERVICES                 308,417.32          250,826.00       213,215.93       226,300.00
5200                  SUPPLIES                              15,468.26           21,500.00        12,136.38        15,000.00
5400                  OTHER EXPENSES                        18,033.60           21,000.00        21,406.41        20,000.00
5700                  CAPITAL OUTLAYS                       19,090.37           14,500.00         5,669.59        10,400.00
101-701-684           MISC. & SUNDRY                                                                (56.35)
  Total Department PLANNING:                            (1,172,214.21)   (1,137,489.00)        (870,399.43)    (1,098,353.00)
RECREATION
5100                  SALARIES & BENEFITS                  272,530.43          260,711.00       208,431.60       304,921.00
5300                  CONTRACTUAL SERVICES                  79,125.01           90,836.00        66,703.71        90,608.00
5200                  SUPPLIES                              31,171.55           29,000.00        28,910.64        22,610.00
5400                  OTHER EXPENSES                           793.86            1,582.00         2,580.33         2,500.00
5700                  CAPITAL OUTLAYS                        5,730.00            5,600.00         6,494.99         7,800.00
  Total Department RECREATION:                            (389,350.85)     (387,729.00)        (313,121.27)     (428,439.00)
MC GRAFT PARK
5100                  SALARIES & BENEFITS                   17,027.81          40,000.00         35,492.14        27,833.00
5300                  CONTRACTUAL SERVICES                  83,357.73          89,515.00         73,233.71       104,765.00
5200                  SUPPLIES                              12,325.12           9,200.00          2,980.46         9,500.00
5700                  CAPITAL OUTLAYS                        8,335.00                               297.50         1,000.00
  Total Department MC GRAFT PARK:                         (121,045.66)     (138,715.00)        (112,003.81)     (143,098.00)

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                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26               25-26             26-27
                                                             Activity  Amended Budget            Activity       Recommended
GL Number             Description
Fund: 101 GENERAL
PARKS MAINTENANCE
5100                  SALARIES & BENEFITS                1,066,261.97     1,061,340.00         824,612.85       1,077,048.00
5300                  CONTRACTUAL SERVICES               1,589,443.12     1,594,476.00       1,270,023.36       1,631,336.00
5200                  SUPPLIES                             156,264.40       173,179.00         139,403.07         170,279.00
5400                  OTHER EXPENSES                         4,783.80         3,000.00           3,356.27           3,000.00
5700                  CAPITAL OUTLAYS                       26,352.82        21,500.00          20,343.58          21,500.00
  Total Department PARKS MAINTENANCE:                   (2,843,106.11)   (2,853,495.00)      (2,257,739.13)    (2,903,163.00)
FORESTRY
5100                  SALARIES & BENEFITS                    1,675.36           4,957.00          8,355.31            3,827.00
5300                  CONTRACTUAL SERVICES                  18,463.24          42,285.00         19,717.20           37,000.00
5200                  SUPPLIES                               6,612.38           5,650.00          4,975.72            5,400.00
5400                  OTHER EXPENSES                            29.99           1,558.00          1,558.00            1,600.00
5700                  CAPITAL OUTLAYS                        1,524.07           1,525.00                              1,525.00
  Total Department FORESTRY:                               (28,305.04)         (55,975.00)      (34,606.23)      (49,352.00)
PAID BEACH PARKING
5100                  SALARIES & BENEFITS                  286,045.45          359,518.00       244,239.95       357,167.00
5300                  CONTRACTUAL SERVICES                 232,745.29           91,196.00       134,682.62       130,600.00
5200                  SUPPLIES                               3,470.10           13,275.00         4,701.68         5,900.00
  Total Department PAID BEACH PARKING:                    (522,260.84)     (463,989.00)       (383,624.25)      (493,667.00)
SOCIAL DISTRICT
5300                  CONTRACTUAL SERVICES                  10,826.30           5,000.00            110.00
5200                  SUPPLIES                               1,500.00
  Total Department SOCIAL DISTRICT:                        (12,326.30)         (5,000.00)          (110.00)              0.00
CAPITAL PROJECTS
5100                  SALARIES & BENEFITS                    8,877.64                             1,602.87
5300                  CONTRACTUAL SERVICES                 875,595.56          337,000.00       422,318.17       352,000.00
5200                  SUPPLIES                              13,171.30
5700                  CAPITAL OUTLAYS                       28,457.66
  Total Department CAPITAL PROJECTS:                      (926,102.16)     (337,000.00)       (423,921.04)      (352,000.00)
DEBT SERVICE
5300                  CONTRACTUAL SERVICES                                                         825.00
5900                  OTHER FINANCING USES               1,076,947.39     1,067,123.00       1,067,670.71       1,055,083.00
  Total Department DEBT SERVICE:                        (1,076,947.39)   (1,067,123.00)      (1,068,495.71)    (1,055,083.00)
TRANSFERS TO OTHER FUNDS
5900                OTHER FINANCING USES                 1,362,920.04     1,007,000.00                           835,156.00
  Total Department TRANSFERS TO OTHER FUNDS:            (1,362,920.04)   (1,007,000.00)              0.00       (835,156.00)
Fund 101 - GENERAL:
TOTAL ESTIMATED REVENUES                                44,250,986.71    45,515,476.00       34,424,611.15     45,236,841.00
TOTAL APPROPRIATIONS                                    44,092,732.22    45,303,641.00       35,415,412.11     45,942,097.00
NET OF REVENUES & APPROPRIATIONS:                          158,254.49          211,835.00     (990,800.96)      (705,256.00)
BEG. FUND BALANCE                                        7,789,218.85     7,947,473.34       7,947,473.34       7,947,473.34
END FUND BALANCE                                         7,947,473.34     8,159,308.34       6,956,672.38       7,242,217.34




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                                                                                                              Page 141 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26          25-26            26-27
                                                            Activity  Amended Budget       Activity      Recommended
GL Number             Description
Fund: 151 CEMETERY TRUST FUND
151-000-480-004649    CEMETERY-MISC. INCOME                33,235.00                       22,063.12       25,000.00
151-000-665-004970    INTEREST INCOME                       5,789.41                        3,589.06        3,000.00
151-000-669           GAIN ON INVESTMENTS                 206,030.07                                      200,000.00
  Total Department :                                      245,054.48            0.00       25,652.18      228,000.00
Fund 151 - CEMETERY TRUST FUND:
TOTAL ESTIMATED REVENUES                                  245,054.48            0.00       25,652.18      228,000.00
TOTAL APPROPRIATIONS                                            0.00            0.00            0.00            0.00
NET OF REVENUES & APPROPRIATIONS:                         245,054.48            0.00       25,652.18      228,000.00
BEG. FUND BALANCE                                       2,503,108.91     2,748,163.39   2,748,163.39     2,748,163.39
END FUND BALANCE                                        2,748,163.39     2,748,163.39   2,773,815.57     2,976,163.39




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                                                                                                       Page 142 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26               25-26             26-27
                                                             Activity  Amended Budget            Activity       Recommended
GL Number             Description
Fund: 202 MAJOR STREETS
202-000-502           FEDERAL GRANTS                       748,530.00
202-000-540           STATE GRANTS                         231,588.89                                           2,466,703.00
202-000-546           STATE RECEIPT MAJORS               5,119,277.72     5,177,958.00       3,346,077.20       6,000,000.00
202-000-581           LRP LOCAL ROADS PROGRAM               80,071.60        80,000.00          53,445.08          80,000.00
202-000-620-004619    MISC. SALES AND SERVICES                 556.00
202-000-665-004970    INTEREST INCOME                       32,838.12          20,000.00         12,829.65           10,000.00
202-000-684-004800    MISC. & SUNDRY                           530.84
202-000-699-400000    OP. TRANS FROM CAPITAL PROJECTS       13,019.87
  Total Department :                                     6,226,413.04     5,277,958.00       3,412,351.93       8,556,703.00
ROUTINE MAINTENANCE
5100                SALARIES & BENEFITS                    265,715.61          318,183.00       173,970.11       438,184.00
5300                CONTRACTUAL SERVICES                   368,704.53          407,205.00       282,220.66       361,579.00
5200                SUPPLIES                               104,823.88          223,500.00       (12,192.45)      223,200.00
5400                OTHER EXPENSES                           1,539.72            2,000.00         1,891.33         3,000.00
5700                CAPITAL OUTLAYS                                                              99,611.53        26,083.00
  Total Department ROUTINE MAINTENANCE:                   (740,783.74)     (950,888.00)       (545,501.18)     (1,052,046.00)
WINTER MAINTENANCE
5100                  SALARIES & BENEFITS                  118,668.29          156,196.00       172,466.70       129,951.00
5300                  CONTRACTUAL SERVICES                 169,134.50          225,500.00       262,925.03       225,000.00
5200                  SUPPLIES                             131,317.17          301,000.00       305,012.38       250,000.00
  Total Department WINTER MAINTENANCE:                    (419,119.96)     (682,696.00)       (740,404.11)      (604,951.00)
TRAFFIC SIGNALS
5200                  SUPPLIES                                  51.71
  Total Department TRAFFIC SIGNALS:                            (51.71)              0.00             0.00                0.00
TRAFFIC SERVICES
5100                  SALARIES & BENEFITS                   69,763.39          67,257.00         71,014.77        89,963.00
5300                  CONTRACTUAL SERVICES                  85,616.84          94,000.00         95,173.36       120,000.00
5200                  SUPPLIES                              52,067.79          52,500.00         28,415.36        56,000.00
5400                  OTHER EXPENSES                           219.87                               939.88         1,000.00
  Total Department TRAFFIC SERVICES:                      (207,667.89)     (213,757.00)       (195,543.37)      (266,963.00)
DRAINAGE MAINTENANCE
5100                SALARIES & BENEFITS                      6,170.54          16,507.00         21,389.39           12,665.00
5300                CONTRACTUAL SERVICES                     6,476.46          20,500.00         19,047.99           25,500.00
5200                SUPPLIES                                14,120.28          23,000.00         17,391.03           28,000.00
  Total Department DRAINAGE MAINTENANCE:                   (26,767.28)         (60,007.00)      (57,828.41)      (66,165.00)
MISCELLANEOUS EXPENSES
5400                OTHER EXPENSES                           3,420.23
  Total Department MISCELLANEOUS EXPENSES:                  (3,420.23)              0.00             0.00                0.00
ADMINISTRATION & RECORDKEEPING
5300                CONTRACTUAL SERVICES                   582,771.96          711,642.00       593,035.00       625,376.00
  Total Department ADMINISTRATION & RECORDKEEPING:        (582,771.96)     (711,642.00)       (593,035.00)      (625,376.00)
LEAVES & BENEFITS
5100                  SALARIES & BENEFITS                  345,652.20          339,985.00       309,763.87       342,790.00
5300                  CONTRACTUAL SERVICES                   2,832.45            3,000.00         2,684.08         3,500.00
  Total Department LEAVES & BENEFITS:                     (348,484.65)     (342,985.00)       (312,447.95)      (346,290.00)
CAPITAL PROJECTS
5100                  SALARIES & BENEFITS                       76.33
5300                  CONTRACTUAL SERVICES               2,424,521.40     5,069,976.00       3,033,232.17       7,849,295.00
  Total Department CAPITAL PROJECTS:                    (2,424,597.73)   (5,069,976.00)      (3,033,232.17)    (7,849,295.00)
TRANSFERS TO OTHER FUNDS
5900                OTHER FINANCING USES                 2,200,000.00          490,000.00                        625,000.00
  Total Department TRANSFERS TO OTHER FUNDS:            (2,200,000.00)     (490,000.00)              0.00       (625,000.00)
Fund 202 - MAJOR STREETS:
TOTAL ESTIMATED REVENUES                                 6,226,413.04     5,277,958.00       3,412,351.93       8,556,703.00
TOTAL APPROPRIATIONS                                     6,953,665.15     8,521,951.00       5,477,992.19      11,436,086.00
NET OF REVENUES & APPROPRIATIONS:                         (727,252.11)   (3,243,993.00)      (2,065,640.26)    (2,879,383.00)
BEG. FUND BALANCE                                        5,693,398.88     4,966,146.77       4,966,146.77       4,966,146.77
END FUND BALANCE                                         4,966,146.77     1,722,153.77       2,900,506.51       2,086,763.77



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                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26               25-26             26-27
                                                            Activity  Amended Budget            Activity       Recommended
GL Number             Description
Fund: 203 LOCAL STREETS
203-000-492           TELECOM FRANCHISE FEES              212,099.13       175,000.00                            175,000.00
203-000-553           STATE RECEIPT LOCAL               1,384,866.94     1,424,255.00          895,454.50      1,600,000.00
203-000-581           LRP LOCAL ROADS PROGRAM              22,024.44        20,000.00           14,684.58         20,000.00
203-000-657-004802    REIMB:SERVICES RENDERED               1,382.75                             7,453.50
203-000-657-004803    CDBG PROGRAM REIMBURSEMENTS          10,000.00
203-000-665-004970    INTEREST INCOME                         229.93                             1,668.86           1,000.00
203-000-684-004800    MISC. & SUNDRY                          111.97                             3,104.00
203-000-699-100000    OP. TRANS FROM GENERAL FUND          92,000.00
203-000-699-200000    OP. TRANS FROM SPECIAL REVENUE    2,200,000.00          490,000.00                        625,000.00
  Total Department :                                    3,922,715.16     2,109,255.00          922,365.44      2,421,000.00
ROUTINE MAINTENANCE
5100                SALARIES & BENEFITS                   338,036.64          407,259.00       273,696.94       660,538.00
5300                CONTRACTUAL SERVICES                  332,916.46          307,984.00       314,936.53       357,071.00
5200                SUPPLIES                              150,898.42          117,100.00        64,596.09       117,500.00
5400                OTHER EXPENSES                            570.93            1,000.00           359.00         1,000.00
5700                CAPITAL OUTLAYS                                            75,000.00        74,098.90         2,392.00
  Total Department ROUTINE MAINTENANCE:                  (822,422.45)     (908,343.00)       (727,687.46)     (1,138,501.00)
WINTER MAINTENANCE
5100                  SALARIES & BENEFITS                 100,694.93          117,167.00       172,737.78       190,803.00
5300                  CONTRACTUAL SERVICES                152,317.13          260,000.00       278,236.79       260,000.00
5200                  SUPPLIES                             34,071.80           40,000.00        58,342.00        45,000.00
  Total Department WINTER MAINTENANCE:                   (287,083.86)     (417,167.00)       (509,316.57)      (495,803.00)
PAVEMENT SPALL & POT HOLE REPAIR
5300                CONTRACTUAL SERVICES                      374.08
  Total Department PAVEMENT SPALL & POT HOLE REPAI           (374.08)              0.00             0.00                0.00
TRAFFIC SERVICES
5100                  SALARIES & BENEFITS                   4,006.75           4,941.00            574.05
5300                  CONTRACTUAL SERVICES                  1,358.89           1,500.00          1,466.00           2,000.00
5200                  SUPPLIES                                502.31           2,000.00            241.67           2,000.00
  Total Department TRAFFIC SERVICES:                       (5,867.95)         (8,441.00)        (2,281.72)          (4,000.00)
DRAINAGE MAINTENANCE
5100                SALARIES & BENEFITS                    46,318.52          54,766.00         56,680.88           68,313.00
5300                CONTRACTUAL SERVICES                   48,149.66          63,000.00         65,027.26           83,000.00
5200                SUPPLIES                               17,312.24          20,500.00         18,809.62           25,500.00
  Total Department DRAINAGE MAINTENANCE:                 (111,780.42)     (138,266.00)       (140,517.76)      (176,813.00)
ADMINISTRATION & RECORDKEEPING
5300                CONTRACTUAL SERVICES                  386,789.04          419,449.00       349,540.80       450,102.00
  Total Department ADMINISTRATION & RECORDKEEPING:       (386,789.04)     (419,449.00)       (349,540.80)      (450,102.00)
LEAVES & BENEFITS
5100                  SALARIES & BENEFITS                 304,607.06          318,426.00       315,780.50           62,151.00
5300                  CONTRACTUAL SERVICES                  1,539.02            2,500.00         2,391.37            3,000.00
  Total Department LEAVES & BENEFITS:                    (306,146.08)     (320,926.00)       (318,171.87)       (65,151.00)
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES              1,514,992.50          50,000.00          7,041.66           50,000.00
  Total Department CAPITAL PROJECTS:                   (1,514,992.50)         (50,000.00)       (7,041.66)      (50,000.00)
Fund 203 - LOCAL STREETS:
TOTAL ESTIMATED REVENUES                                3,922,715.16     2,109,255.00         922,365.44       2,421,000.00
TOTAL APPROPRIATIONS                                    3,435,456.38     2,262,592.00       2,054,557.84       2,380,370.00
NET OF REVENUES & APPROPRIATIONS:                         487,258.78      (153,337.00)      (1,132,192.40)          40,630.00
BEG. FUND BALANCE                                         499,040.96          986,299.74      986,299.74         986,299.74
END FUND BALANCE                                          986,299.74          832,962.74     (145,892.66)      1,026,929.74




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                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26            25-26             26-27
                                                            Activity  Amended Budget         Activity       Recommended
GL Number             Description
Fund: 231 LAKESIDE CORRIDOR IMPROVEMENT AUTHORITY
231-000-402           PROPERTY TAX                         36,584.00          42,148.00     46,570.00            51,227.00
231-000-665-004970    INCOME TAX-PENALTY & INTEREST           160.28              75.00        192.26
  Total Department :                                       36,744.28          42,223.00     46,762.26            51,227.00
BROWNFIELD
5300                  CONTRACTUAL SERVICES                                    42,223.00      6,525.00            25,000.00
5900                  OTHER FINANCING USES                  6,374.17                        11,500.00
  Total Department BROWNFIELD:                             (6,374.17)         (42,223.00)   (18,025.00)      (25,000.00)
Fund 231 - LAKESIDE CORRIDOR IMPROVEMENT AUTHORITY:
TOTAL ESTIMATED REVENUES                                   36,744.28          42,223.00     46,762.26            51,227.00
TOTAL APPROPRIATIONS                                        6,374.17          42,223.00     18,025.00            25,000.00
NET OF REVENUES & APPROPRIATIONS:                          30,370.11               0.00     28,737.26            26,227.00
BEG. FUND BALANCE                                          29,750.24          60,120.35     60,120.35            60,120.35
END FUND BALANCE                                           60,120.35          60,120.35     88,857.61            86,347.35




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                                                                                                          Page 145 of 209
                                      BUDGET REPORT FOR CITY OF MUSKEGON
                                           Calculations As Of 04/30/2026

                                                             24-25           25-26          25-26             26-27
                                                         Activity  Amended Budget       Activity       Recommended
GL Number             Description
Fund: 232 HARBOR WEST BROWNFIELD
232-000-402           PROPERTY TAX                      14,561.00                        4,946.00        14,394.00
  Total Department :                                    14,561.00             0.00       4,946.00        14,394.00
DEVELOPMENT ACTIVITY
5300                CONTRACTUAL SERVICES                 1,147.50                        1,307.50            1,361.00
  Total Department DEVELOPMENT ACTIVITY:                (1,147.50)            0.00      (1,307.50)       (1,361.00)
Fund 232 - HARBOR WEST BROWNFIELD:
TOTAL ESTIMATED REVENUES                                14,561.00             0.00       4,946.00        14,394.00
TOTAL APPROPRIATIONS                                     1,147.50             0.00       1,307.50         1,361.00
NET OF REVENUES & APPROPRIATIONS:                       13,413.50             0.00       3,638.50        13,033.00
BEG. FUND BALANCE                                     (576,865.00)     (563,451.50)   (563,451.50)     (563,451.50)
END FUND BALANCE                                      (563,451.50)     (563,451.50)   (559,813.00)     (550,418.50)




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                                                                                                     Page 146 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26            25-26            26-27
                                                             Activity  Amended Budget         Activity      Recommended
GL Number             Description
Fund: 233 SCATTERED HOUSING BROWNFIELD FUN
233-000-402           SCATTERED HOUSING BROWNFIELD FUN     206,904.00          213,319.00    301,666.00      428,393.00
233-000-665-004970    INTEREST INCOME                          438.27              100.00        933.60
  Total Department :                                       207,342.27          213,419.00    302,599.60      428,393.00
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES                  12,600.00          12,600.00                     428,393.00
  Total Department CAPITAL PROJECTS:                       (12,600.00)         (12,600.00)        0.00      (428,393.00)
Fund 233 - SCATTERED HOUSING BROWNFIELD FUN:
TOTAL ESTIMATED REVENUES                                   207,342.27          213,419.00    302,599.60      428,393.00
TOTAL APPROPRIATIONS                                        12,600.00           12,600.00          0.00      428,393.00
NET OF REVENUES & APPROPRIATIONS:                          194,742.27          200,819.00    302,599.60            0.00
BEG. FUND BALANCE                                           37,072.38          231,814.65    231,814.65      231,814.65
END FUND BALANCE                                           231,814.65          432,633.65    534,414.25      231,814.65




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                                                                                                          Page 147 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26           25-26             26-27
                                                             Activity  Amended Budget        Activity       Recommended
GL Number             Description
Fund: 234 BROWNFIELD AUTHORITY (PIGEON HILL)
234-000-402           PROPERTY TAX                          17,508.00          18,167.00       902.00         15,292.00
234-000-665-004970    INTEREST INCOME                            7.57                            4.52
  Total Department :                                        17,515.57          18,167.00       906.52         15,292.00
BROWNFIELD
5300                  CONTRACTUAL SERVICES                  17,455.50          18,167.00     1,788.00         15,292.00
  Total Department BROWNFIELD:                             (17,455.50)         (18,167.00)   (1,788.00)      (15,292.00)
Fund 234 - BROWNFIELD AUTHORITY (PIGEON HILL):
TOTAL ESTIMATED REVENUES                                    17,515.57          18,167.00       906.52         15,292.00
TOTAL APPROPRIATIONS                                        17,455.50          18,167.00     1,788.00         15,292.00
NET OF REVENUES & APPROPRIATIONS:                               60.07               0.00      (881.48)               0.00
BEG. FUND BALANCE                                            1,788.03           1,848.10     1,848.10             1,848.10
END FUND BALANCE                                             1,848.10           1,848.10       966.62             1,848.10




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                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                             Calculations As Of 04/30/2026

                                                               24-25           25-26            25-26             26-27
                                                           Activity  Amended Budget         Activity       Recommended
GL Number             Description
Fund: 235 BROWNFIELD AUTHORITY (BETTEN)
235-000-402           PROPERTY TAX                        90,679.00          94,608.00     84,492.00         87,326.00
235-000-428           REIMBURSEMENT STATE                 10,674.23                        12,338.81
  Total Department :                                     101,353.23          94,608.00     96,830.81         87,326.00
DEBT SERVICE
5900                  OTHER FINANCING USES                 3,759.47                                          87,326.00
  Total Department DEBT SERVICE:                          (3,759.47)              0.00          0.00        (87,326.00)
Fund 235 - BROWNFIELD AUTHORITY (BETTEN):
TOTAL ESTIMATED REVENUES                                 101,353.23          94,608.00     96,830.81         87,326.00
TOTAL APPROPRIATIONS                                       3,759.47               0.00          0.00         87,326.00
NET OF REVENUES & APPROPRIATIONS:                         97,593.76          94,608.00     96,830.81              0.00
BEG. FUND BALANCE                                       (159,864.35)         (62,270.59)   (62,270.59)      (62,270.59)
END FUND BALANCE                                         (62,270.59)          32,337.41     34,560.22       (62,270.59)




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                                                                                                         Page 149 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26           25-26            26-27
                                                             Activity  Amended Budget        Activity      Recommended
GL Number             Description
Fund: 236 BROWNFIELD AUTHORITY (FORMER MALL SITE)
236-000-402           PROPERTY TAX                         265,357.00          274,634.00   207,633.00      284,303.00
236-000-428           REIMBURSEMENT STATE                   15,283.74           15,818.00    15,226.37
236-000-665-004970    INTEREST INCOME                          520.84              500.00       524.42
  Total Department :                                       281,161.58          290,952.00   223,383.79      284,303.00
TRANSFERS TO OTHER FUNDS
5900                OTHER FINANCING USES                   265,357.00          274,634.00
  Total Department TRANSFERS TO OTHER FUNDS:              (265,357.00)     (274,634.00)          0.00             0.00
Fund 236 - BROWNFIELD AUTHORITY (FORMER MALL SITE):
TOTAL ESTIMATED REVENUES                                   281,161.58          290,952.00   223,383.79      284,303.00
TOTAL APPROPRIATIONS                                       265,357.00          274,634.00         0.00            0.00
NET OF REVENUES & APPROPRIATIONS:                           15,804.58          16,318.00    223,383.79      284,303.00
BEG. FUND BALANCE                                          102,990.67          118,795.25   118,795.25      118,795.25
END FUND BALANCE                                           118,795.25          135,113.25   342,179.04      403,098.25




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                                                                                                         Page 150 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26          25-26             26-27
                                                             Activity  Amended Budget       Activity       Recommended
GL Number             Description
Fund: 237 BROWNFIELD AUTHORITY TERRACE POINT
237-000-402           PROPERTY TAX                         346,459.00          356,084.00
237-000-665-004970    INTEREST INCOME                          107.00                          25.74
  Total Department :                                       346,566.00          356,084.00      25.74                0.00
TERRACE POINT LANDING
5300                CONTRACTUAL SERVICES                   372,734.50          356,084.00   4,628.00
  Total Department TERRACE POINT LANDING:                 (372,734.50)     (356,084.00)     (4,628.00)              0.00
Fund 237 - BROWNFIELD AUTHORITY TERRACE POINT:
TOTAL ESTIMATED REVENUES                                   346,566.00          356,084.00      25.74                0.00
TOTAL APPROPRIATIONS                                       372,734.50          356,084.00   4,628.00                0.00
NET OF REVENUES & APPROPRIATIONS:                          (26,168.50)              0.00    (4,602.26)              0.00
BEG. FUND BALANCE                                           34,817.09           8,648.59    8,648.59             8,648.59
END FUND BALANCE                                             8,648.59           8,648.59    4,046.33             8,648.59




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                                                                                                         Page 151 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26           25-26             26-27
                                                            Activity  Amended Budget        Activity       Recommended
GL Number             Description
Fund: 238 SWEETWATER BROWNFIELD
238-000-402           PROPERTY TAX                         72,045.00          74,275.00     15,217.00        65,720.00
238-000-665-004970    INCOME TAX-PENALTY & INTEREST            17.40                            13.24
  Total Department :                                       72,062.40          74,275.00     15,230.24        65,720.00
BROWNFIELD
5300                  CONTRACTUAL SERVICES                 71,842.00          74,275.00     4,209.50         65,720.00
  Total Department BROWNFIELD:                            (71,842.00)         (74,275.00)   (4,209.50)      (65,720.00)
Fund 238 - SWEETWATER BROWNFIELD:
TOTAL ESTIMATED REVENUES                                   72,062.40          74,275.00     15,230.24        65,720.00
TOTAL APPROPRIATIONS                                       71,842.00          74,275.00      4,209.50        65,720.00
NET OF REVENUES & APPROPRIATIONS:                             220.40               0.00     11,020.74               0.00
BEG. FUND BALANCE                                           4,092.10           4,312.50      4,312.50            4,312.50
END FUND BALANCE                                            4,312.50           4,312.50     15,333.24            4,312.50




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                                                                                                         Page 152 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26           25-26            26-27
                                                            Activity  Amended Budget        Activity      Recommended
GL Number             Description
Fund: 241 ADELAIDE POINTE BROWNFIELD
241-000-402           PROPERTY TAX                        142,143.00          147,993.00   422,167.00      430,810.00
241-000-665-004970    INTEREST INCOME                         210.00                           610.58
  Total Department :                                      142,353.00          147,993.00   422,777.58      430,810.00
BROWNFIELD
5300                  CONTRACTUAL SERVICES                136,581.00          147,993.00    8,294.00       430,810.00
  Total Department BROWNFIELD:                           (136,581.00)     (147,993.00)     (8,294.00)     (430,810.00)
Fund 241 - ADELAIDE POINTE BROWNFIELD:
TOTAL ESTIMATED REVENUES                                  142,353.00          147,993.00   422,777.58      430,810.00
TOTAL APPROPRIATIONS                                      136,581.00          147,993.00     8,294.00      430,810.00
NET OF REVENUES & APPROPRIATIONS:                           5,772.00               0.00    414,483.58              0.00
BEG. FUND BALANCE                                           2,735.99           8,507.99      8,507.99           8,507.99
END FUND BALANCE                                            8,507.99           8,507.99    422,991.57           8,507.99




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                                                                                                        Page 153 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26           25-26            26-27
                                                            Activity  Amended Budget        Activity      Recommended
GL Number             Description
Fund: 242 HIGHPOINT FLATS BROWNFIELD
242-000-402           PROPERTY TAX                         90,032.00          92,970.00     87,267.00       93,967.00
242-000-665-004970    INTEREST INCOME                         112.62                            18.63
  Total Department :                                       90,144.62          92,970.00     87,285.63       93,967.00
BROWNFIELD
5300                  CONTRACTUAL SERVICES                 90,032.00          92,970.00                     93,967.00
  Total Department BROWNFIELD:                            (90,032.00)         (92,970.00)       0.00       (93,967.00)
Fund 242 - HIGHPOINT FLATS BROWNFIELD:
TOTAL ESTIMATED REVENUES                                   90,144.62          92,970.00     87,285.63       93,967.00
TOTAL APPROPRIATIONS                                       90,032.00          92,970.00          0.00       93,967.00
NET OF REVENUES & APPROPRIATIONS:                             112.62               0.00     87,285.63            0.00
BEG. FUND BALANCE                                               0.00             112.62        112.62           112.62
END FUND BALANCE                                              112.62             112.62     87,398.25           112.62




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                                                                                                        Page 154 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26        25-26            26-27
                                                            Activity  Amended Budget     Activity      Recommended
GL Number             Description
Fund: 243 BROWNFIELD REVOLVING FUND
243-000-402           PROPERTY TAX                                                      231,012.00      316,699.00
243-000-665-004970    INCOME TAX-PENALTY & INTEREST                                          48.13
  Total Department :                                            0.00            0.00    231,060.13      316,699.00
Fund 243 - BROWNFIELD REVOLVING FUND:
TOTAL ESTIMATED REVENUES                                        0.00            0.00    231,060.13      316,699.00
TOTAL APPROPRIATIONS                                            0.00            0.00          0.00            0.00
NET OF REVENUES & APPROPRIATIONS:                               0.00            0.00    231,060.13      316,699.00
BEG. FUND BALANCE                                               0.00            0.00          0.00            0.00
END FUND BALANCE                                                0.00            0.00    231,060.13      316,699.00




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                                                                                                     Page 155 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26             25-26             26-27
                                                            Activity  Amended Budget          Activity       Recommended
GL Number             Description
Fund: 252 FARMERS MARKET & KITCHEN 242
252-000-540           STATE GRANTS                                                                            481,267.00
252-000-613-004664    FARMERS MARKET INCOME               171,743.73          160,000.00     106,413.50       175,000.00
252-000-613-004690    KITCHEN 242 RENTAL                   36,566.50           36,000.00      23,694.88        35,000.00
252-000-613-004693    FARMERS MARKET EVENT RENTAL           7,205.00            5,000.00       3,492.00         5,000.00
252-000-613-004694    FARMERS MARKET EBT FEES              13,901.60           18,000.00      13,441.85        18,000.00
252-000-613-004699    EBT PROGRAM                         132,364.75          275,000.00     277,317.07       275,000.00
252-000-614-004663    FLEA MARKET AT FARMERS MARKET        21,495.00           21,000.00      19,310.00        23,000.00
252-000-614-004697    ALCOHOLIC BEVERAGE                    4,117.00            3,000.00       1,770.00         1,000.00
252-000-665-004970    INTEREST INCOME                       1,720.65            1,500.00         682.54         1,500.00
252-000-667-004677    RENT                                 30,334.40           40,000.00      30,686.98        38,000.00
252-000-674-004805    CONTRIBUTIONS                         2,851.56            1,500.00       5,682.42         2,000.00
252-000-679-004840    FRIENDS OF THE MARKET                   361.85
252-000-679-004845    FUNDRAISING REVENUE                  59,022.50          50,000.00       36,113.00         58,000.00
252-000-684-004800    MISC. & SUNDRY                          194.09                             925.00
252-000-684-004814    PROMOTIONAL PRODUCTS                                       500.00                            2,000.00
252-000-699-100000    OP. TRANS FROM GENERAL FUND           7,000.00           7,000.00                            9,000.00
252-000-699-400000    OP. TRANS FROM CAPITAL PROJECTS      90,000.00
  Total Department :                                      578,878.63          618,500.00     519,529.24      1,123,767.00
WESTERN AVENUE CHALETS
5100                SALARIES & BENEFITS                       360.50                           7,799.12
5300                CONTRACTUAL SERVICES                   25,141.37          31,500.00       27,766.63         34,100.00
5200                SUPPLIES                                   58.98                           1,528.86
  Total Department WESTERN AVENUE CHALETS:                (25,560.85)         (31,500.00)    (37,094.61)      (34,100.00)
FARMERS & FLEA MARKET
5100                SALARIES & BENEFITS                   124,748.43          142,631.00     101,201.17       141,024.00
5300                CONTRACTUAL SERVICES                  429,150.10          399,100.00     402,615.00       419,920.00
5200                SUPPLIES                               55,028.91           56,400.00      44,638.38        65,600.00
5400                OTHER EXPENSES                          1,467.06            2,000.00       1,188.76         2,000.00
5700                CAPITAL OUTLAYS                        15,367.47           14,800.00       6,851.30       493,692.00
  Total Department FARMERS & FLEA MARKET:                (625,761.97)     (614,931.00)      (556,494.61)    (1,122,236.00)
Fund 252 - FARMERS MARKET & KITCHEN 242:
TOTAL ESTIMATED REVENUES                                  578,878.63          618,500.00     519,529.24      1,123,767.00
TOTAL APPROPRIATIONS                                      651,322.82          646,431.00     593,589.22      1,156,336.00
NET OF REVENUES & APPROPRIATIONS:                         (72,444.19)         (27,931.00)    (74,059.98)      (32,569.00)
BEG. FUND BALANCE                                         156,985.98          84,541.79       84,541.79         84,541.79
END FUND BALANCE                                           84,541.79          56,610.79       10,481.81         51,972.79




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                                                                                                           Page 156 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                 24-25           25-26              25-26             26-27
                                                             Activity  Amended Budget           Activity       Recommended
GL Number             Description
Fund: 254 MERCY HEALTH ARENA
254-000-613-004691    EVENT REVENUE                         572,120.35        450,000.00       570,696.44       500,000.00
254-000-613-004696    CONCESSION NON ALCHOLIC               104,682.57         87,500.00        99,417.54        87,500.00
254-000-613-004699    FOOD HUB                               65,133.13         52,500.00        70,716.55        59,000.00
254-000-614-004630    CARLISLES                              95,427.41        100,000.00        75,508.49       100,000.00
254-000-614-004639    RAD DADS                              216,128.00        200,000.00       165,086.66       200,000.00
254-000-614-004640    TICKET SURCHARGE                       56,304.80         45,000.00        50,447.93        48,000.00
254-000-614-004646    CONCESSIONS FOOD                      146,361.97        120,000.00       133,130.36       120,000.00
254-000-614-004697    ALCOHOLIC BEVERAGE                    162,806.01        150,000.00       163,834.95       150,000.00
254-000-614-004698    FLOOR RENTAL                          300,606.00        275,000.00       230,126.65       325,000.00
254-000-620-004619    MISC. SALES AND SERVICES               56,581.85         20,000.00        41,489.50        30,000.00
254-000-626-004666    PARKING LOT RENTAL - WESTERN AVE       42,682.33         35,000.00        40,268.76        35,000.00
254-000-632           ANNEX REVENUE                          63,390.00         63,390.00        58,852.50        63,390.00
254-000-657-004802    REIMB:SERVICES RENDERED                11,005.61         10,000.00           256.55
254-000-665-004970    INTEREST INCOME                        14,528.67         10,000.00        10,717.30        14,500.00
254-000-667-004667    PARKING LOT RENTAL - SHORELINE         16,678.01         12,000.00        12,619.74        12,000.00
254-000-667-004677    RENT                                  104,156.88         70,000.00        27,500.00        50,000.00
254-000-671           ADVERTISING REVENUE                   141,515.00        120,000.00       116,667.00       132,500.00
254-000-684-004800    MISC. & SUNDRY                          2,261.72          5,000.00            85.23         2,000.00
254-000-699-100000    OP. TRANS FROM GENERAL FUND           760,000.00        450,000.00                        445,156.00
  Total Department :                                     2,932,370.31     2,275,390.00      1,867,422.15       2,374,046.00
MERCY HEALTH ARENA
5100                  SALARIES & BENEFITS                  376,052.31       379,074.00        294,970.45         396,614.00
5300                  CONTRACTUAL SERVICES               1,755,608.56     1,375,745.00      1,512,210.23       1,465,432.00
5200                  SUPPLIES                             354,666.98       320,500.00        333,406.62         347,000.00
5400                  OTHER EXPENSES                        66,627.22        66,500.00         62,263.00          61,500.00
5700                  CAPITAL OUTLAYS                       71,320.48        55,750.00         53,260.86          38,500.00
  Total Department MERCY HEALTH ARENA:                   (2,624,275.55)   (2,197,569.00)    (2,256,111.16)    (2,309,046.00)
CARLISLE
5200                  SUPPLIES                               66,771.18        60,000.00         56,475.40         65,000.00
  Total Department CARLISLE:                                (66,771.18)       (60,000.00)      (56,475.40)      (65,000.00)
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES                  244,251.41         5,000.00
  Total Department CAPITAL PROJECTS:                      (244,251.41)        (5,000.00)            0.00              0.00
Fund 254 - MERCY HEALTH ARENA:
TOTAL ESTIMATED REVENUES                                 2,932,370.31     2,275,390.00      1,867,422.15       2,374,046.00
TOTAL APPROPRIATIONS                                     2,935,298.14     2,262,569.00      2,312,586.56       2,374,046.00
NET OF REVENUES & APPROPRIATIONS:                            (2,927.83)       12,821.00      (445,164.41)             0.00
BEG. FUND BALANCE                                            81,153.10        78,225.27        78,225.27          78,225.27
END FUND BALANCE                                             78,225.27        91,046.27      (366,939.14)         78,225.27




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                                                                                                             Page 157 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                             Calculations As Of 04/30/2026

                                                               24-25           25-26             25-26             26-27
                                                           Activity  Amended Budget          Activity       Recommended
GL Number             Description
Fund: 285 TREE REPLACEMENT
285-000-665-004970    INTEREST INCOME                         71.14                              17.72
285-000-674-004805    CONTRIBUTIONS                        9,000.00          184,000.00       7,000.00            3,000.00
285-000-674-092522    CONTRIBUTIONS                                                          74,485.00
285-000-684-004800    MISC. & SUNDRY                       3,000.00          22,500.00       18,657.79
  Total Department :                                      12,071.14          206,500.00     100,160.51            3,000.00
FORESTRY
5300                  CONTRACTUAL SERVICES                 1,007.00           1,500.00
5200                  SUPPLIES                            15,543.50          19,500.00       19,866.53            7,500.00
  Total Department FORESTRY:                             (16,550.50)         (21,000.00)    (19,866.53)       (7,500.00)
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES                                   175,000.00     137,725.00
  Total Department CAPITAL PROJECTS:                           0.00      (175,000.00)      (137,725.00)              0.00
Fund 285 - TREE REPLACEMENT:
TOTAL ESTIMATED REVENUES                                  12,071.14          206,500.00     100,160.51            3,000.00
TOTAL APPROPRIATIONS                                      16,550.50          196,000.00     157,591.53            7,500.00
NET OF REVENUES & APPROPRIATIONS:                         (4,479.36)         10,500.00      (57,431.02)       (4,500.00)
BEG. FUND BALANCE                                         12,446.01           7,966.65        7,966.65            7,966.65
END FUND BALANCE                                           7,966.65          18,466.65      (49,464.37)           3,466.65




06/01/2026 03:08 PM                                                                             Page:     22/36

                                                                                                          Page 158 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                               Calculations As Of 04/30/2026

                                                                 24-25           25-26             25-26             26-27
                                                             Activity  Amended Budget          Activity       Recommended
GL Number             Description
Fund: 394 DOWNTOWN DEVELOPMENT AUTH DS
394-000-402           PROPERTY TAX                         516,659.00          537,000.00     513,921.00       524,621.00
394-000-428           REIMBURSEMENT STATE                                                      39,469.06
394-000-540           STATE GRANTS                          12,000.00
394-000-569           STATE GRANTS OTHER                                                        4,015.84
394-000-613           EVENT REVENUE                         98,381.95          100,000.00      65,575.97       100,000.00
394-000-665-004970    INTEREST INCOME                        2,071.18            1,300.00       1,243.15         1,600.00
394-000-679-004847    SPONSORSHIP REVENUE - MUSK ART F      24,000.00           12,000.00      34,500.00        33,500.00
394-000-699-200000    OP. TRANS FROM SPECIAL REVENUE           600.00
  Total Department :                                       653,712.13          650,300.00     658,725.02       659,721.00
DOWNTOWN MUSKEGON BID
5100                SALARIES & BENEFITS                    123,387.83          138,284.00      99,862.60       140,209.00
5300                CONTRACTUAL SERVICES                    38,843.34          100,000.00      37,547.01        48,000.00
5200                SUPPLIES                                 4,460.00                           3,129.40         4,000.00
5400                OTHER EXPENSES                                                                450.00
  Total Department DOWNTOWN MUSKEGON BID:                 (166,691.17)     (238,284.00)      (140,989.01)     (192,209.00)
LAKESHORE ART FESTIVAL
5300                CONTRACTUAL SERVICES                    82,757.32          27,700.00       20,331.31        21,200.00
5200                SUPPLIES                                16,597.60           2,000.00       10,228.66        17,000.00
  Total Department LAKESHORE ART FESTIVAL:                 (99,354.92)         (29,700.00)    (30,559.97)      (38,200.00)
TASTE OF MUSKEGON
5300                  CONTRACTUAL SERVICES                  25,115.20
5200                  SUPPLIES                                  15.99
  Total Department TASTE OF MUSKEGON:                      (25,131.19)              0.00            0.00             0.00
FARMERS & FLEA MARKET
5300                CONTRACTUAL SERVICES                     1,277.90
  Total Department FARMERS & FLEA MARKET:                   (1,277.90)              0.00            0.00             0.00
EVENTS
5200                  SUPPLIES                               2,393.58                           2,455.94
  Total Department EVENTS:                                  (2,393.58)              0.00       (2,455.94)            0.00
DEBT SERVICE
5300                  CONTRACTUAL SERVICES                 204,884.93          145,000.00     193,078.25       216,000.00
5900                  OTHER FINANCING USES                 130,000.00          130,000.00                      130,000.00
  Total Department DEBT SERVICE:                          (334,884.93)     (275,000.00)      (193,078.25)     (346,000.00)
TRANSFERS TO OTHER FUNDS
5900                OTHER FINANCING USES                    30,000.00
  Total Department TRANSFERS TO OTHER FUNDS:               (30,000.00)              0.00            0.00             0.00
Fund 394 - DOWNTOWN DEVELOPMENT AUTH DS:
TOTAL ESTIMATED REVENUES                                   653,712.13          650,300.00     658,725.02       659,721.00
TOTAL APPROPRIATIONS                                       659,733.69          542,984.00     367,083.17       576,409.00
NET OF REVENUES & APPROPRIATIONS:                           (6,021.56)         107,316.00     291,641.85        83,312.00
BEG. FUND BALANCE                                          460,986.12          454,964.56     454,964.56       454,964.56
END FUND BALANCE                                           454,964.56          562,280.56     746,606.41       538,276.56




06/01/2026 03:08 PM                                                                               Page:     23/36

                                                                                                            Page 159 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                             Calculations As Of 04/30/2026

                                                               24-25           25-26            25-26             26-27
                                                           Activity  Amended Budget         Activity       Recommended
GL Number             Description
Fund: 395 TIFA DEBT SERVICE
395-000-402           PROPERTY TAX                        48,776.00          50,000.00     51,407.00         53,463.00
395-000-428           REIMBURSEMENT STATE                  9,497.18                         9,361.78
395-000-665-004970    INTEREST INCOME                        135.19                           108.01
  Total Department :                                      58,408.37          50,000.00     60,876.79         53,463.00
DEBT SERVICE
5900                  OTHER FINANCING USES                50,000.04          50,000.00     41,666.70         50,000.00
  Total Department DEBT SERVICE:                         (50,000.04)         (50,000.00)   (41,666.70)      (50,000.00)
Fund 395 - TIFA DEBT SERVICE:
TOTAL ESTIMATED REVENUES                                  58,408.37          50,000.00     60,876.79         53,463.00
TOTAL APPROPRIATIONS                                      50,000.04          50,000.00     41,666.70         50,000.00
NET OF REVENUES & APPROPRIATIONS:                          8,408.33               0.00     19,210.09             3,463.00
BEG. FUND BALANCE                                         30,513.47          38,921.80     38,921.80         38,921.80
END FUND BALANCE                                          38,921.80          38,921.80     58,131.89         42,384.80




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                                                                                                         Page 160 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26            25-26             26-27
                                                            Activity  Amended Budget         Activity       Recommended
GL Number             Description
Fund: 420 CONVENTION CENTER CONSTRUCTION
420-000-665-004970    INTEREST INCOME                         428.28              400.00        332.96           400.00
420-000-676           COUNTY REIM PA 59 FUNDS COLLECTE    916,644.70          925,000.00    929,875.00       943,000.00
  Total Department :                                      917,072.98          925,400.00    930,207.96       943,400.00
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES                    500.00             500.00         500.00            500.00
  Total Department CAPITAL PROJECTS:                         (500.00)           (500.00)       (500.00)           (500.00)
DEBT SERVICE
5900                  OTHER FINANCING USES                916,645.00          930,000.00    929,875.00       943,000.00
  Total Department DEBT SERVICE:                         (916,645.00)     (930,000.00)     (929,875.00)     (943,000.00)
Fund 420 - CONVENTION CENTER CONSTRUCTION:
TOTAL ESTIMATED REVENUES                                  917,072.98          925,400.00    930,207.96       943,400.00
TOTAL APPROPRIATIONS                                      917,145.00          930,500.00    930,375.00       943,500.00
NET OF REVENUES & APPROPRIATIONS:                             (72.02)         (5,100.00)       (167.04)           (100.00)
BEG. FUND BALANCE                                         114,407.78          114,335.76    114,335.76       114,335.76
END FUND BALANCE                                          114,335.76          109,235.76    114,168.72       114,235.76




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                                                                                                          Page 161 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26             25-26            26-27
                                                            Activity  Amended Budget          Activity      Recommended
GL Number             Description
Fund: 445 PUBLIC IMPROVEMENT
445-000-502           FEDERAL GRANTS                       65,012.50                         102,488.00
445-000-540           STATE GRANTS                        300,000.00
445-000-626-004651    REIMBURSEMENT                       285,067.00          300,000.00                     275,000.00
445-000-665-004970    INTEREST INCOME                       7,104.49            6,000.00       2,660.82        2,500.00
445-000-667-004677    RENT                                 10,049.41           10,000.00
445-000-669           GAIN ON INVESTMENT                    3,749.45
445-000-671           LEASE BILLBOARDS                      6,612.50           7,000.00        9,321.75           5,000.00
445-000-674-004805    CONTRIBUTIONS                        13,293.00
445-000-677-004808    SALE OF LAND                      2,589,065.38          100,000.00     179,993.55
445-000-679-004847    SPONSORSHIP REVENUE - PARKS         150,000.00          150,000.00     112,500.00      150,000.00
445-000-684-004800    MISC. & SUNDRY                      146,496.30              500.00      29,585.00
  Total Department :                                    3,576,450.03          573,500.00     436,549.12      432,500.00
ECONOMIC DEVELOPMENT
5700                CAPITAL OUTLAYS                        25,219.97
  Total Department ECONOMIC DEVELOPMENT:                  (25,219.97)              0.00           0.00               0.00
WESTERN AVENUE CHALETS
5300                CONTRACTUAL SERVICES                   15,000.00
  Total Department WESTERN AVENUE CHALETS:                (15,000.00)              0.00           0.00               0.00
CAPITAL PROJECTS
5100                  SALARIES & BENEFITS                     334.11
5300                  CONTRACTUAL SERVICES              2,089,014.80          530,000.00     475,287.55      523,000.00
5200                  SUPPLIES                            157,956.62                         149,281.31
5700                  CAPITAL OUTLAYS                     502,213.11                           8,233.59
  Total Department CAPITAL PROJECTS:                   (2,749,518.64)     (530,000.00)     (632,802.45)     (523,000.00)
Fund 445 - PUBLIC IMPROVEMENT:
TOTAL ESTIMATED REVENUES                                3,576,450.03          573,500.00     436,549.12      432,500.00
TOTAL APPROPRIATIONS                                    2,789,738.61          530,000.00     632,802.45      523,000.00
NET OF REVENUES & APPROPRIATIONS:                         786,711.42          43,500.00    (196,253.33)      (90,500.00)
BEG. FUND BALANCE                                         286,653.74     1,073,365.16      1,073,365.16     1,073,365.16
END FUND BALANCE                                        1,073,365.16     1,116,865.16        877,111.83       982,865.16




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                                                                                                          Page 162 of 209
                                      BUDGET REPORT FOR CITY OF MUSKEGON
                                           Calculations As Of 04/30/2026

                                                             24-25           25-26       25-26            26-27
                                                         Activity  Amended Budget    Activity      Recommended
GL Number             Description
Fund: 447 HOUSING
447-000-402           PROPERTY TAX                                                                   730,736.00
447-000-696           BOND PROCEEDS                                                               10,000,000.00
  Total Department :                                         0.00            0.00        0.00     10,730,736.00
ECONOMIC DEVELOPMENT
5700                CAPITAL OUTLAYS                                                               10,000,000.00
  Total Department ECONOMIC DEVELOPMENT:                     0.00            0.00        0.00    (10,000,000.00)
Fund 447 - HOUSING:
TOTAL ESTIMATED REVENUES                                     0.00            0.00        0.00     10,730,736.00
TOTAL APPROPRIATIONS                                         0.00            0.00        0.00     10,000,000.00
NET OF REVENUES & APPROPRIATIONS:                            0.00            0.00        0.00       730,736.00
BEG. FUND BALANCE                                            0.00            0.00        0.00             0.00
END FUND BALANCE                                             0.00            0.00        0.00       730,736.00




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                                                                                                 Page 163 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                             Calculations As Of 04/30/2026

                                                               24-25           25-26             25-26            26-27
                                                           Activity  Amended Budget          Activity      Recommended
GL Number             Description
Fund: 482 STATE GRANTS
482-000-502-092334    FEDERAL GRANTS                     988,081.34       162,500.00         64,000.00
482-000-502-092339    FEDERAL GRANTS                     398,819.06     1,500,000.00        569,676.15     3,600,000.00
482-000-540           STATE GRANTS                       381,722.29                          82,775.21
482-000-540-092415    STATE GRANTS                     2,500,000.00
482-000-540-092419    STATE GRANTS                       653,919.22                          17,946.85
482-000-540-092501    STATE GRANTS                     1,000,000.00
482-000-540-092520    STATE GRANTS                         5,582.50                         196,126.76
482-000-665-004970    INTEREST INCOME                                                       148,062.57
  Total Department :                                   5,928,124.41     1,662,500.00      1,078,587.54     3,600,000.00
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES             5,517,139.95     1,500,000.00        385,704.47     3,600,000.00
5200                  SUPPLIES                           240,404.79                         114,055.55
5900                  OTHER FINANCING USES                47,683.09
5700                  CAPITAL OUTLAYS                    397,500.00          162,500.00      64,000.00
482-901-540-092206    STATE GRANTS                       223,446.25
482-901-540-092345    STATE GRANTS                        51,157.17
  Total Department CAPITAL PROJECTS:                  (5,928,124.41)   (1,662,500.00)     (563,760.02)    (3,600,000.00)
Fund 482 - STATE GRANTS:
TOTAL ESTIMATED REVENUES                               6,202,727.83     1,662,500.00      1,078,587.54     3,600,000.00
TOTAL APPROPRIATIONS                                   6,202,727.83     1,662,500.00        563,760.02     3,600,000.00
NET OF REVENUES & APPROPRIATIONS:                              0.00               0.00      514,827.52              0.00
BEG. FUND BALANCE                                          1,547.09           1,547.09        1,547.09           1,547.09
END FUND BALANCE                                           1,547.09           1,547.09      516,374.61           1,547.09




06/01/2026 03:08 PM                                                                             Page:    28/36

                                                                                                         Page 164 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                                 Calculations As Of 04/30/2026

                                                                   24-25           25-26              25-26             26-27
                                                               Activity  Amended Budget           Activity       Recommended
GL Number             Description
Fund: 590 SEWAGE DISPOSAL SYSTEM
590-000-620-004619    MISC. SALES AND SERVICES               155,700.00       125,000.00         60,900.00          75,000.00
590-000-628-004605    METERED SALES                        9,615,879.88     9,600,000.00      7,909,088.25       9,500,000.00
590-000-638-004606    DEBT SERVICE FEE                       380,945.34       425,188.00        329,449.08         652,912.00
590-000-657-004704    PENALTIES/INTEREST/FINES               189,176.00       200,000.00        157,943.96         200,000.00
590-000-657-004802    REIMB:SERVICES RENDERED                206,738.00         5,000.00       (130,828.21)          5,000.00
590-000-665-004970    INTEREST INCOME                         29,562.20        20,000.00         22,405.16          20,000.00
590-000-696-004961    BOND PROCEEDS                                                                                262,500.00
  Total Department :                                      10,578,001.42    10,375,188.00      8,348,958.24      10,715,412.00
PENSION ADMINISTRATION
5100                SALARIES & BENEFITS                      127,963.44          148,850.00      123,997.60       165,247.00
  Total Department PENSION ADMINISTRATION:                  (127,963.44)     (148,850.00)      (123,997.60)      (165,247.00)
MUSKEGON CO. WASTEWATER TREATMENT
5300                CONTRACTUAL SERVICES                   5,104,696.37     5,150,000.00      3,181,917.91       4,641,000.00
  Total Department MUSKEGON CO. WASTEWATER TREATME        (5,104,696.37)   (5,150,000.00)     (3,181,917.91)    (4,641,000.00)
WATER & SEWER MAINTENANCE
[None]              Unclassified                             (27,357.00)
5100                SALARIES & BENEFITS                    1,111,248.47     1,121,100.00         945,912.19      1,226,938.00
5300                CONTRACTUAL SERVICES                   1,394,553.75       891,297.00         736,973.99        968,713.00
5200                SUPPLIES                                 119,916.29       144,500.00         119,154.24        148,700.00
5400                OTHER EXPENSES                           422,348.61       403,000.00         571,159.00         53,000.00
5700                CAPITAL OUTLAYS                            7,313.16        51,500.00          65,535.47         90,975.00
  Total Department WATER & SEWER MAINTENANCE:             (3,028,023.28)   (2,611,397.00)     (2,438,734.89)    (2,488,326.00)
CAPITAL PROJECTS
5100                  SALARIES & BENEFITS                      5,421.13
5300                  CONTRACTUAL SERVICES                 1,460,970.62     2,729,197.00         834,989.06      3,286,287.00
5700                  CAPITAL OUTLAYS                     (1,460,970.62)
  Total Department CAPITAL PROJECTS:                          (5,421.13)   (2,729,197.00)      (834,989.06)     (3,286,287.00)
DEBT SERVICE
5300                  CONTRACTUAL SERVICES                   730,324.82          678,085.00     582,023.91        709,121.00
5900                  OTHER FINANCING USES                 1,032,832.17          664,894.00   1,619,535.70        439,511.00
  Total Department DEBT SERVICE:                          (1,763,156.99)   (1,342,979.00)     (2,201,559.61)    (1,148,632.00)
Fund 590 - SEWAGE DISPOSAL SYSTEM:
TOTAL ESTIMATED REVENUES                                  10,578,001.42    10,375,188.00      8,348,958.24      10,715,412.00
TOTAL APPROPRIATIONS                                      10,029,261.21    11,982,423.00      8,781,199.07      11,729,492.00
NET OF REVENUES & APPROPRIATIONS:                            548,740.21    (1,607,235.00)      (432,240.83)     (1,014,080.00)
BEG. FUND BALANCE                                         28,891,312.53    29,452,777.57      29,452,777.57     29,452,777.57
FUND BALANCE ADJUSTMENTS                                      12,724.83                                0.00
END FUND BALANCE                                          29,452,777.57    27,845,542.57      29,020,536.74     28,438,697.57




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                                                                                                               Page 165 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26               25-26             26-27
                                                            Activity  Amended Budget            Activity       Recommended
GL Number             Description
Fund: 591 WATER SUPPLY SYSTEM
591-000-502           FEDERAL GRANTS                    1,959,270.39                           460,065.44
591-000-540           STATE GRANTS                        166,278.68     5,381,438.00           43,276.10
591-000-540-092414    STATE GRANTS                        990,681.00        50,000.00
591-000-620-004619    MISC. SALES AND SERVICES            225,621.29       150,000.00          56,085.68          75,000.00
591-000-628-004605    METERED SALES                     3,775,214.89     4,200,000.00       3,622,048.18       4,408,000.00
591-000-637           WHOLESALE WATER                   5,113,992.88     5,500,000.00       4,590,227.72       5,500,000.00
591-000-638-004606    DEBT SERVICE FEE                  1,105,704.14     1,192,364.00         929,441.85       1,224,416.00
591-000-642-004652    TOWNSHIP MAINTENANCE CONTRACT       144,242.43       125,000.00         100,186.67         125,000.00
591-000-644-004618    LEAD REPLACEMENT FEE                762,804.40       760,000.00         638,973.55         750,000.00
591-000-657-004704    PENALTIES/INTEREST/FINES            127,106.25       130,000.00         124,256.14         150,000.00
591-000-657-004802    REIMB:SERVICES RENDERED              54,535.60        70,000.00          88,665.54          50,000.00
591-000-665-004970    INTEREST INCOME                      91,438.56        15,000.00           3,507.16          10,000.00
591-000-673           GAIN (LOSS) ON SALE OF ASSETS                                           405,446.81
591-000-684-004800    MISC. & SUNDRY                       25,460.62       450,000.00         534,722.04          10,000.00
591-000-692-004661    LEASE/RENTAL                        207,539.32       275,000.00         186,808.99         210,000.00
591-000-696-004961    BOND PROCEEDS                       (60,593.23)    4,144,313.00       2,668,201.92      11,232,750.00
  Total Department :                                   14,689,297.22    22,443,115.00       14,451,913.79     23,745,166.00
PENSION ADMINISTRATION
5100                SALARIES & BENEFITS                   253,442.28          294,811.00       245,587.60       327,285.00
  Total Department PENSION ADMINISTRATION:               (253,442.28)     (294,811.00)       (245,587.60)      (327,285.00)
LEAD SERVICE LINE
5100                  SALARIES & BENEFITS                 349,764.00          429,963.00       205,874.46       312,120.00
5300                  CONTRACTUAL SERVICES                255,018.35          310,000.00       299,055.07       265,000.00
5200                  SUPPLIES                            160,561.41          116,000.00        76,490.03       100,000.00
  Total Department LEAD SERVICE LINE:                    (765,343.76)     (855,963.00)       (581,419.56)      (677,120.00)
WATER SUPPLY & FILTRATION
[None]              Unclassified                          (45,597.00)
5100                SALARIES & BENEFITS                 1,286,933.84     1,490,324.00       1,111,422.20       1,529,204.00
5300                CONTRACTUAL SERVICES                  937,843.59     1,108,944.00         874,578.43       1,255,950.00
5200                SUPPLIES                              487,087.48       552,640.00         368,050.89         563,800.00
5400                OTHER EXPENSES                          1,365.00         7,000.00           4,561.70           7,000.00
5700                CAPITAL OUTLAYS                        94,620.84       166,850.00          71,157.69         202,950.00
  Total Department WATER SUPPLY & FILTRATION:          (2,762,253.75)   (3,325,758.00)      (2,429,770.91)    (3,558,904.00)
WATER & SEWER MAINTENANCE
[None]              Unclassified                          (45,597.00)
5100                SALARIES & BENEFITS                 1,592,244.49     1,548,518.00       1,346,814.93       1,731,345.00
5300                CONTRACTUAL SERVICES                1,214,283.96     1,086,862.00         828,853.06       1,032,173.00
5200                SUPPLIES                              322,197.70       318,000.00         276,806.89         341,900.00
5400                OTHER EXPENSES                        214,745.66       220,000.00          68,556.89          65,000.00
5700                CAPITAL OUTLAYS                        28,644.81        28,000.00          26,981.61          34,975.00
  Total Department WATER & SEWER MAINTENANCE:          (3,326,519.62)   (3,201,380.00)      (2,548,013.38)    (3,205,393.00)
WATER & SEWER MAINTENANCE-TWP
5100                SALARIES & BENEFITS                    42,403.37          41,099.00         38,468.20         24,122.00
5300                CONTRACTUAL SERVICES                   25,247.79          47,000.00         39,598.85         53,000.00
5200                SUPPLIES                                3,868.25           2,750.00            522.94          2,750.00
  Total Department WATER & SEWER MAINTENANCE-TWP:         (71,519.41)         (90,849.00)      (78,589.99)      (79,872.00)
CAPITAL PROJECTS
5100                  SALARIES & BENEFITS                   1,156.00
5300                  CONTRACTUAL SERVICES              5,157,566.18    11,106,349.00       4,742,381.51      13,045,592.00
5700                  CAPITAL OUTLAYS                  (5,157,565.91)
  Total Department CAPITAL PROJECTS:                       (1,156.27)   (11,106,349.00)     (4,742,381.51) (13,045,592.00)
DEBT SERVICE
5300                  CONTRACTUAL SERVICES              1,581,289.47     1,518,573.00       1,305,396.50       1,587,156.00
5400                  OTHER EXPENSES                          561.01
5900                  OTHER FINANCING USES              2,376,916.11     1,415,245.00       3,515,881.10        557,040.00
  Total Department DEBT SERVICE:                       (3,958,766.59)   (2,933,818.00)      (4,821,277.60)    (2,144,196.00)
Fund 591 - WATER SUPPLY SYSTEM:
TOTAL ESTIMATED REVENUES                               14,689,297.22    22,443,115.00       14,451,913.79     23,745,166.00
TOTAL APPROPRIATIONS                                   11,139,001.68    21,808,928.00       15,447,040.55     23,038,362.00
NET OF REVENUES & APPROPRIATIONS:                       3,550,295.54          634,187.00     (995,126.76)       706,804.00
BEG. FUND BALANCE                                      37,324,673.75    40,808,882.50       40,808,882.50     40,808,882.50
FUND BALANCE ADJUSTMENTS                                  (66,086.79)                                0.00

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                                                                                                             Page 166 of 209
                                    BUDGET REPORT FOR CITY OF MUSKEGON
                                         Calculations As Of 04/30/2026

                                                           24-25           25-26           25-26            26-27
                                                       Activity  Amended Budget        Activity      Recommended
GL Number             Description
Fund: 591 WATER SUPPLY SYSTEM
END FUND BALANCE                                  40,808,882.50    41,443,069.50   39,813,755.74    41,515,686.50




06/01/2026 03:08 PM                                                                       Page:    31/36

                                                                                                   Page 167 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26              25-26             26-27
                                                            Activity  Amended Budget           Activity       Recommended
GL Number             Description
Fund: 594 MARINA AND LAUNCH RAMP
594-000-540           STATE GRANTS                                                                             350,000.00
594-000-631           ICE SALES                               300.00              300.00
594-000-644-004626    LARGE BASIN FEES                    202,377.62          184,000.00      171,973.00       184,000.00
594-000-644-004627    SMALL BASIN FEES                                            900.00          900.00
594-000-644-004628    MOORING FEES                         10,155.40           12,000.00       15,865.55        15,000.00
594-000-644-004629    TRANSIENT FEES                        1,508.00            8,000.00        6,448.00         6,500.00
594-000-653           LAUNCH RAMP                         113,181.00          100,000.00       94,720.50       120,000.00
594-000-656           TRAFFIC FINES & FEES                    140.00                               35.00
594-000-665-004970    INTEREST INCOME                       1,602.74           1,600.00         1,775.61          1,600.00
594-000-684-004800    MISC. & SUNDRY                        2,142.03           1,000.00           859.00         49,000.00
594-000-699-100000    OP. TRANS FROM GENERAL FUND         300,000.00
  Total Department :                                      631,406.79          307,800.00      292,576.66       726,100.00
MUNICIPAL MARINA
5100                  SALARIES & BENEFITS                 123,390.88          146,481.00       81,229.36       137,545.00
5300                  CONTRACTUAL SERVICES                215,936.52          222,867.00      216,247.52       173,194.00
5200                  SUPPLIES                             15,768.84           31,100.00       19,168.08        25,400.00
5400                  OTHER EXPENSES                          517.16            1,000.00          325.55         1,000.00
5900                  OTHER FINANCING USES                100,794.12          100,000.00       92,730.18       100,000.00
5700                  CAPITAL OUTLAYS                      51,333.89           57,200.00       23,383.27         3,200.00
  Total Department MUNICIPAL MARINA:                     (507,741.41)     (558,648.00)      (433,083.96)      (440,339.00)
LAUNCH RAMPS
5100                  SALARIES & BENEFITS                   2,061.14           5,739.00         1,919.04        10,000.00
5300                  CONTRACTUAL SERVICES                 19,686.30          18,500.00         9,780.29       135,820.00
5200                  SUPPLIES                              1,929.49          21,500.00         1,250.05         2,500.00
  Total Department LAUNCH RAMPS:                          (23,676.93)         (45,739.00)     (12,949.38)     (148,320.00)
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES                                    350,000.00                      1,130,000.00
5700                  CAPITAL OUTLAYS
  Total Department CAPITAL PROJECTS:                            0.00      (350,000.00)             0.00      (1,130,000.00)
Fund 594 - MARINA AND LAUNCH RAMP:
TOTAL ESTIMATED REVENUES                                  631,406.79          307,800.00      292,576.66        726,100.00
TOTAL APPROPRIATIONS                                      531,418.34          954,387.00      446,033.34      1,718,659.00
NET OF REVENUES & APPROPRIATIONS:                          99,988.45      (646,587.00)      (153,456.68)      (992,559.00)
BEG. FUND BALANCE                                       1,347,928.34     1,449,485.52       1,449,485.52      1,449,485.52
FUND BALANCE ADJUSTMENTS                                    1,568.73                                0.00
END FUND BALANCE                                        1,449,485.52          802,898.52    1,296,028.84       456,926.52




06/01/2026 03:08 PM                                                                               Page:     32/36

                                                                                                            Page 168 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26              25-26             26-27
                                                            Activity  Amended Budget           Activity       Recommended
GL Number             Description
Fund: 642 PUBLIC SERVICE BUILDING
642-000-665-004970    INTEREST INCOME                       5,399.11         5,000.00          4,163.75           5,000.00
642-000-667-004677    RENT                              2,302,002.00     2,732,000.00      2,276,675.90       2,700,000.00
  Total Department :                                    2,307,401.11     2,737,000.00      2,280,839.65       2,705,000.00
PENSION ADMINISTRATION
5100                SALARIES & BENEFITS                   542,705.88          631,291.00      525,886.50       329,850.00
  Total Department PENSION ADMINISTRATION:               (542,705.88)     (631,291.00)      (525,886.50)      (329,850.00)
PUBLIC SERVICE BUILDING
[None]              Unclassified                          (45,596.00)
5100                SALARIES & BENEFITS                 1,135,728.29     1,331,860.00         967,413.52      1,274,359.00
5300                CONTRACTUAL SERVICES                  544,075.10       569,106.00         470,348.88        613,076.00
5200                SUPPLIES                               28,580.32        47,750.00          32,935.98         53,500.00
5400                OTHER EXPENSES                         15,421.06        11,000.00           6,088.06         11,000.00
5900                OTHER FINANCING USES                   22,366.02        25,000.00          13,870.40         25,000.00
5700                CAPITAL OUTLAYS                       117,800.13       124,700.00          95,922.05        101,100.00
  Total Department PUBLIC SERVICE BUILDING:            (1,818,374.92)   (2,109,416.00)     (1,586,578.89)    (2,078,035.00)
INVENTORY
5400                  OTHER EXPENSES                          755.47                            7,370.01
  Total Department INVENTORY:                                (755.47)              0.00        (7,370.01)            0.00
CAPITAL PROJECTS
5300                  CONTRACTUAL SERVICES                    787.67
5700                  CAPITAL OUTLAYS                                         150,000.00          990.00
  Total Department CAPITAL PROJECTS:                         (787.67)     (150,000.00)           (990.00)            0.00
Fund 642 - PUBLIC SERVICE BUILDING:
TOTAL ESTIMATED REVENUES                                2,307,401.11     2,737,000.00      2,280,839.65       2,705,000.00
TOTAL APPROPRIATIONS                                    2,362,623.94     2,890,707.00      2,120,825.40       2,407,885.00
NET OF REVENUES & APPROPRIATIONS:                         (55,222.83)     (153,707.00)        160,014.25       297,115.00
BEG. FUND BALANCE                                         273,843.75          306,621.21      306,621.21       306,621.21
FUND BALANCE ADJUSTMENTS                                   88,000.29                                0.00
END FUND BALANCE                                          306,621.21          152,914.21      466,635.46       603,736.21




06/01/2026 03:08 PM                                                                               Page:     33/36

                                                                                                            Page 169 of 209
                                        BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26             25-26             26-27
                                                            Activity  Amended Budget          Activity       Recommended
GL Number             Description
Fund: 643 ENGINEERING SERVICES
643-000-498           LICENSE AND PERMIT MISC.              5,822.40           6,000.00        2,350.00         4,000.00
643-000-665-004970    INTEREST INCOME                         696.67                             646.40           600.00
643-000-682           ENGINEERING FEES                     41,858.65           50,000.00      18,586.90        20,000.00
643-000-684-004680    INTERDEPT.ENGINEERING FEES          959,618.56          660,000.00     697,307.36       700,000.00
643-000-699-100000    OPERATING TRANSFER FROM GENERAL                         350,000.00                      390,000.00
  Total Department :                                    1,007,996.28     1,066,000.00        718,890.66      1,114,600.00
PENSION ADMINISTRATION
5100                SALARIES & BENEFITS                    74,507.52          86,669.00       72,198.40       130,575.00
  Total Department PENSION ADMINISTRATION:                (74,507.52)         (86,669.00)    (72,198.40)     (130,575.00)
ENGINEERING
5100                  SALARIES & BENEFITS                 576,267.65          604,064.00     479,126.64       616,372.00
5300                  CONTRACTUAL SERVICES                296,443.68          334,386.00     279,697.00       343,123.00
5200                  SUPPLIES                             12,306.65           13,700.00      13,562.58        13,300.00
5400                  OTHER EXPENSES                        2,639.68            2,500.00       4,135.65         2,500.00
5900                  OTHER FINANCING USES                  2,499.12                           2,290.86
5700                  CAPITAL OUTLAYS                      32,495.77          25,000.00       14,232.19         26,000.00
  Total Department ENGINEERING:                          (922,652.55)     (979,650.00)      (793,044.92)    (1,001,295.00)
Fund 643 - ENGINEERING SERVICES:
TOTAL ESTIMATED REVENUES                                1,007,996.28     1,066,000.00        718,890.66      1,114,600.00
TOTAL APPROPRIATIONS                                      997,160.07     1,066,319.00        865,243.32      1,131,870.00
NET OF REVENUES & APPROPRIATIONS:                          10,836.21            (319.00)    (146,352.66)      (17,270.00)
BEG. FUND BALANCE                                         104,103.96          171,334.48     171,334.48       171,334.48
FUND BALANCE ADJUSTMENTS                                   56,394.31                               0.00
END FUND BALANCE                                          171,334.48          171,015.48      24,981.82       154,064.48




06/01/2026 03:08 PM                                                                              Page:     34/36

                                                                                                           Page 170 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                24-25           25-26              25-26             26-27
                                                            Activity  Amended Budget           Activity       Recommended
GL Number             Description
Fund: 661 EQUIPMENT
661-000-614           REIMBURSEMENT INCOME                997,840.43     2,000,000.00      2,295,226.65       2,661,120.00
661-000-614-004662    EQUIPMENT RENTAL BY DEPTS.        2,950,969.08     1,963,652.00      1,085,725.81       1,291,851.00
661-000-642-004654    METERED SALES-FUEL                   22,978.46        20,000.00         18,495.93          20,000.00
661-000-657-004802    REIMB:SERVICES RENDERED              20,144.48        55,000.00         49,353.66          15,000.00
661-000-665-004970    INTEREST INCOME                      11,985.11        10,000.00          9,094.09          10,000.00
661-000-684-004800    MISC. & SUNDRY                       26,984.01        50,000.00         49,081.48          30,000.00
661-000-693           SALE OF FIXED ASSETS                 16,775.00        30,000.00         29,831.00          40,000.00
  Total Department :                                    4,047,676.57     4,128,652.00      3,536,808.62       4,067,971.00
PENSION ADMINISTRATION
5100                SALARIES & BENEFITS                    90,621.12          105,413.00       87,812.80       144,480.00
  Total Department PENSION ADMINISTRATION:                (90,621.12)     (105,413.00)        (87,812.80)     (144,480.00)
EQUIPMENT SERVICES
[None]                Unclassified                        (27,357.00)
5100                  SALARIES & BENEFITS                 694,786.84          825,256.00     569,411.17         658,102.00
5300                  CONTRACTUAL SERVICES                849,798.34          975,206.00     806,957.83       1,006,916.00
5200                  SUPPLIES                            847,474.31          884,515.00     686,211.12         922,000.00
5400                  OTHER EXPENSES                          175.00            7,700.00       2,078.00           8,000.00
5900                  OTHER FINANCING USES                641,952.01                         638,208.22
5700                  CAPITAL OUTLAYS                     847,526.57     1,559,000.00      1,383,678.53       2,641,102.00
661-563-673           GAIN ON SALE OF FIXED ASSETS         (3,517.50)
  Total Department EQUIPMENT SERVICES:                 (3,857,873.57)   (4,251,677.00)     (4,086,544.87)    (5,236,120.00)
CAPITAL PROJECTS
5700                  CAPITAL OUTLAYS                    (730,415.85)                       (925,439.00)
  Total Department CAPITAL PROJECTS:                      730,415.85               0.00       925,439.00             0.00
Fund 661 - EQUIPMENT:
TOTAL ESTIMATED REVENUES                                4,044,159.07     4,128,652.00      3,536,808.62       4,067,971.00
TOTAL APPROPRIATIONS                                    3,214,561.34     4,357,090.00      3,248,918.67       5,380,600.00
NET OF REVENUES & APPROPRIATIONS:                         829,597.73      (228,438.00)        287,889.95     (1,312,629.00)
BEG. FUND BALANCE                                       4,164,453.90     5,086,925.36      5,086,925.36       5,086,925.36
FUND BALANCE ADJUSTMENTS                                   92,873.73                               0.00
END FUND BALANCE                                        5,086,925.36     4,858,487.36      5,374,815.31       3,774,296.36




06/01/2026 03:08 PM                                                                               Page:     35/36

                                                                                                            Page 171 of 209
                                         BUDGET REPORT FOR CITY OF MUSKEGON
                                              Calculations As Of 04/30/2026

                                                                  24-25           25-26             25-26             26-27
                                                              Activity  Amended Budget          Activity       Recommended
GL Number             Description
Fund: 677 GENERAL INSURANCE
677-000-642-004652    REIMBURSEMENT RETIREE HEALTHCARE    2,514,803.58     1,750,000.00     1,039,793.95       2,000,000.00
677-000-665-004970    INTEREST INCOME                         5,017.97         8,000.00         2,215.49           2,800.00
677-000-674           CONTRIBUTIONS                         349,309.62       390,264.00       314,524.71         450,552.00
677-000-677-004807    COBRA RECEIPTS                                           5,000.00
677-000-684-004800    MISC. & SUNDRY                                           3,000.00         2,935.39
677-000-692           INTERDEPT.CHARGES                   4,081,264.97     4,531,402.00     3,605,522.87       5,039,332.00
  Total Department :                                      6,950,396.14     6,687,666.00     4,964,992.41       7,492,684.00
INSURANCE SERVICES
5100                  SALARIES & BENEFITS                    78,285.83        67,125.00        63,551.33          61,397.00
5300                  CONTRACTUAL SERVICES                7,100,332.69     6,642,336.00     5,338,187.71       7,290,678.00
5200                  SUPPLIES                                1,377.08         1,575.00         1,147.99           1,025.00
5400                  OTHER EXPENSES                         26,687.59        57,850.00        40,124.56          55,000.00
5700                  CAPITAL OUTLAYS                         3,773.80                            689.00
  Total Department INSURANCE SERVICES:                   (7,210,456.99)   (6,768,886.00)    (5,443,700.59)    (7,408,100.00)
Fund 677 - GENERAL INSURANCE:
TOTAL ESTIMATED REVENUES                                  6,950,396.14     6,687,666.00     4,964,992.41       7,492,684.00
TOTAL APPROPRIATIONS                                      7,210,456.99     6,768,886.00     5,443,700.59       7,408,100.00
NET OF REVENUES & APPROPRIATIONS:                          (260,060.85)       (81,220.00)    (478,708.18)         84,584.00
BEG. FUND BALANCE                                         1,659,764.68     1,407,423.75     1,407,423.75       1,407,423.75
FUND BALANCE ADJUSTMENTS                                      7,719.92                              0.00
END FUND BALANCE                                          1,407,423.75     1,326,203.75       928,715.57       1,492,007.75
Report Totals:
TOTAL ESTIMATED REVENUES - ALL FUNDS                     111,095,322.79   108,940,891.00    80,463,827.36    128,718,241.00
TOTAL APPROPRIATIONS - ALL FUNDS                         105,166,737.09   113,756,854.00    84,938,629.73    132,952,181.00
NET OF REVENUES & APPROPRIATIONS:                         5,928,585.70    (4,815,963.00)    (4,474,802.37)    (4,233,940.00)

BEG. FUND BALANCE - ALL FUNDS                            90,872,058.95    96,993,839.67     96,993,839.67     96,993,839.67
FUND BALANCE ADJUSTMENTS - ALL FUNDS                        193,195.02                               0.00
END FUND BALANCE - ALL FUNDS                             96,993,839.67    92,177,876.67     92,519,037.30     92,759,899.67




06/01/2026 03:08 PM                                                                                Page:     36/36

                                                                                                             Page 172 of 209
                          Agenda Item Review Form
                          Muskegon City Commission
Commission Meeting Date: June 9, 2026                Title: Contract for Legal Services

Submitted by: Jonathan Seyferth, City Manager        Department: Manager's Office

Brief Summary:
Attached is an agreement between the City of Muskegon and Parmenter O'Tool PC for legal services
through June 30, 2031.

Detailed Summary & Background:
The contract outlines the basics of the relationship between the City of Muskegon and Parementer
Law, including the schedule of fees for legal services, which would be as follows:

                 a.   $195 per hour from July 1, 2026, through June 30, 2027
                 b.   $195 per hour from July 1, 2027, through June 30, 2028
                 c.   $200 per hour from July 1, 2028, through June 30, 2029
                 d.   $205 per hour from July 1, 2029, through June 30, 2030
                 e.   $210 per hour from July 1, 2030, through June 30, 2031


We will pay a $35,000-per-month retainer to Parementer for their services. This is reviewed quarterly to
determine if additional payments are needed for legal services provided based on the hourly rates
agreed to.

Either party may terminate the agreement upon 30 days' notice. In the case of City termination,
there is also a 30-day cure period. To start the 30-day cure period, the City shall provide written
notice of its dissatisfaction with our legal representation, giving Parementer a month to remedy the
situation. If it is not remedied then the City would give formal notice of termination. The agreement
also notes that the City Charter shall prevail regarding the appointment of the attorney, which is
covered in Chapter 3, Section 2 (appointment) of the City Charter and Chapter 5, Section 10
(duties).

It should be noted that several of our appointed administrative offices have contracts in addition to
the attorney, including the City Manager, Auditors, and Assessor. These contracts do not remove the
Commission's appointment authority, which occurs every two years during the Commission's
organizational meeting.

Goal/Action Item:
Administrative Action

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:




                                                                                            Page 173 of 209
Amount Requested:                                  Budgeted Item:
Various                                             Yes      X   No           N/A

Fund(s) or Account(s):                             Budget Amendment Needed:
Various                                             Yes          No       X   N/A

Recommended Motion:
To approve the contract with Parmenter O'Toole PC for legal services through June 30, 2031.

Approvals:                                         Name the Policy/Ordinance Followed:
Immediate Division        X
Head
Information
Technology
Other Division Heads
Communication
Legal Review              X




                                                                                        Page 174 of 209
                            AGREEMENT FOR LEGAL SERVICES

       THIS AGREEMENT FOR LEGAL SERVIES (the “Agreement”) is made between the
CITY OF MUSKEGON, a Michigan municipal corporation, of 933 Terrace St, Muskegon, MI
49440 (the “City”) and PARMENTER O’TOOLE, P.C., a Michigan professional company, of
601 Terrace Street, Muskegon, MI 49440 (the “Law Firm”) (individually a “Party” or together
the “Parties”).

                                           RECITALS:

   A. The City of Muskegon is a home rule city, organized by charter, which provides for the
      office of City Attorney.

   B. The City makes this Agreement for the purpose of naming the City Attorney and the
      Assistant City Attorney, and further to provide for legal services to the City by the said
      Law Firm.

   C. The City Attorney and the Assistant City Attorney are expected to be shareholders of, or
      employed by the Law Firm, and the City believes it necessary and advisable to contract
      with the Law Firm as well as the City Attorney and Assistant City Attorney because of
      the extent and scope of legal services necessary to be performed.

       THE PARTIES THEREFORE AGREE:

     1.0 APPOINTMENT OF CITY ATTORNEY, ASSISTANT CITY ATTORNEY
AND RETENTION OF LAW FIRM.

        1.1     The City appoints Brennen J. Gorman, City Attorney, pursuant to its Charter, and
John C. Schrier as Assistant City Attorney (together the “Attorneys”). The Attorneys accept the
appointments, committing to perform their legal duties to the best of their ability and in
accordance with the highest standards of the legal profession, both as to standards of law practice
and its ethics and rules of professional conduct.

        1.2     The Attorneys shall exercise their appointments in connection with their practice
as members of the Law Firm, and the City therefore retains the Law Firm for the performance of
the legal services described herein. Attorneys who are shareholders of, or employed by, the Law
Firm are authorized to appear as Special Assistant City Attorneys.

       2.0     COMPENSATION FOR SERVICES.

        2.1    As consideration for the services to be provided under this Agreement, the City
shall pay the Law Firm for services actually performed at the rates set forth below, subject to a
monthly retainer in the amount of $35,000.00 (the “Retainer”). The Retainer shall be applied
against fees earned each month. Fees incurred in excess of the Retainer during any given month
shall accrue and be reconciled on a quarterly basis. Within thirty (30) days following the end of
each calendar quarter, the Law Firm shall submit an invoice for the total amount by which fees


                                             1

                                                                                              Page 175 of 209
earned during the quarter exceed the total Retainers paid for that same quarter, and the City shall
remit payment for such excess in accordance with the terms of this Agreement.

No additional compensation shall be due to the City Attorney, Assistant City Attorney, or any
other member of the Law Firm by virtue of their appointments made pursuant to this Agreement,
except as expressly provided herein.

       2.2     The schedule of fees for services shall be:

               a)     $195 per hour from July 1, 2026 through June 30, 2027
               b)     $195 per hour from July 1, 2027 through June 30, 2028
               c)     $200 per hour from July 1, 2028 through June 30, 2029
               d)     $205 per hour from July 1, 2029 through June 30, 2030
               e)     $210 per hour from July 1, 2030 through June 30, 2031

       3.0     TERM AND TERMINATION.

      3.1    The term of this Agreement is five (5) years, beginning July 1, 2026 (the “Term”).
Renewals may occur only on mutually agreeable terms.

        3.2     Either party reserves the right to terminate this agreement on 30 days notice or in
the event of a material breach of the terms and conditions hereof by the other. If City becomes
dissatisfied with the level of services provided by the Law Firm, City shall provide written notice
of such dissatisfaction and the reason for such dissatisfaction. The Law Firm shall have 30 days
to rectify the situation. If the Law Firm fails or refuses to rectify the situation, City may
terminate the contract.

       3.3    Notwithstanding the above provisions, the City Charter concerning the
appointment of the City Attorney shall prevail, and nothing herein is intended to abrogate those
provisions.

        4.0    DESCRIPTION OF SERVICES. The Services to be provided by the Law Firm
are attached as Exhibit A and the Law Firm’s Quote for Legal Services is attached as Exhibit B.

       5.0     GENERAL CONDITIONS.

       5.1     COORDINATION. The City Attorney shall coordinate the services of the
Assistant City Attorney and members of the Law Firm on City matters.

       5.2     EXPENSES. Expenses shall be separately charged and billed monthly.

       5.3      BILLINGS AND COMPENSATION.                    Payment of compensation shall
generally be made on a monthly basis as provided above. Billings for expenses shall also be
rendered monthly. The Law Firm shall maintain records of time and services, which shall be
available for inspection by the City Manager at reasonable times.



                                             2

                                                                                              Page 176 of 209
       5.4    INDEPENDENT CONTRACTORS. The City Attorney, the Assistant City
Attorney, and the Law Firm are not employees of the City. They are determined to be
independent legal counsel and independent contractors.

       5.5    MALPRACTICE INSURANCE. The Law Firm maintain legal malpractice
insurance coverage throughout the Term.

        5.6    SUPPLIES. Generally, the Law Firm shall have its own supplies and office
equipment. On occasion supplies will be required for City services and, with the approval of the
City Manager and by their authority, the City will furnish same at its expense. By way of
example, if City desires that a letter be sent on City stationery, the stationary will be supplied by
the City.

        5.7      CONFLICTS OF INTEREST. The Law Firm agree to exercise their best
efforts to avoid representation of any person, party or entity in any cause contrary to the interest
of the City. The Parties understand that the Law Firm currently represents a large number of
local clients, including businesses, private parties and municipalities. Where a potential conflict
of interest because of such representation may occur, the parties shall proceed as follows:

        5.7.1 In the event of a potential conflict of interest, the City Attorney shall identify the
conflict and inform both parties in writing identifying the potential cause of conflict.

         5.7.2 The City shall determine whether the conflict is material, and if it determines that
it is not, instruct the City Attorney to continue representation of the City; provided, however, the
City Attorney and the Law Firm may determine that the conflict cannot be overcome and advise
the City accordingly, taking steps to assist in obtaining alternative representation of the City and
of the other party.

       5.7.3 In the event the City determines that the conflict is material, the City shall so
inform the City Attorney and the City Attorney shall assist the City and the other party in
obtaining alternative representation for that matter.

         5.7.4   The Law Firm commits not to represent any party against the City in any matter
of litigation.

        5.7.5 Notwithstanding the above, the Law Firm shall act in accordance with the letter
and spirit of the Michigan Rules of Professional Conduct ("MRPC") as adopted by the Michigan
Supreme Court as they apply to any matter involving a conflict of interest or potential conflict of
interest. In case the MRPC conflict with this agreement, the MRPC shall prevail.

       6.0     COUNTERPARTS. This Agreement may be executed in multiple counterparts.
Any copy of this agreement may be relied upon as the original. Amendments to this Agreement
must be in writing on documents of equal dignity with this agreement.




                                             3

                                                                                                Page 177 of 209
        7.0     CONTINUITY/BENEFIT. In the event the Law Firm experiences the addition
of personnel or there are changes in membership of the Law Firm, this Agreement shall continue
in effect unless such change adversely affects the representation of the City.

        IN WITNESS WHEREOF, the parties execute this agreement this ____ day of February,
2026.

                                           CITY OF MUSKEGON

                                           By_____________________________________
                                           Kenneth Johnson, Mayor

                                           By_____________________________________
                                           Ann Marie Meisch, Clerk

                                           PARMENTER O’TOOLE

                                           By ______________________________________
                                           Brennen J. Gorman
                                           City Attorney

                                           By ______________________________________
                                           John C. Schrier
                                           Assistant City Attorney




                                          4

                                                                                         Page 178 of 209
                                          EXHIBIT A

                                          SERVICES

The Law Firm will provide the full scope of legal services required or requested by the City
including, but not limited to:

   1. Provide legal advice, counsel, services, training, consultation, and opinions to the City
      Manager, City Commission, Boards and Commissions, administrative staff, and all levels
      of City government, on a wide variety of civil assignments, including but not limited to
      drafting and revising ordinances, election law, Freedom of Information Act, general
      counsel, historic district law, statutory interpretation, intergovernmental agreements,
      matters before the Michigan Tax Tribunal, land use planning and zoning issues,
      employment law, real estate and development matters, purchase and sale of real and
      personal property, Open Meetings Act, parliamentary procedure, municipal prosecution,
      and labor relations.

   2. Attend bi-monthly City Commission meetings and other meetings when requested by the
      City.

   3. Provide regular on-site legal services, with an attorney present at City Hall every Tuesday
      to be available for consultation, meetings, and other City legal matters.

   4. Appear before courts and administrative agencies, including the Michigan Tax Tribunal,
      on behalf of the City.

   5. Prepare and review ordinances, resolutions, contracts, and other documents on behalf of
      the City.

   6. Prepare legal opinions at the request of the City Manager or Commission.

   7. Provide legal counsel on labor and employment matters, including discipline and
      discharge, workplace investigations, employee performance management, conflicts of
      interest, ADA and FMLA compliance, wage and hour issues, and other applicable federal
      and state labor laws.

   8. Perform other legal services and tasks as assigned by the City Manager or City
      Commission.




                                            5

                                                                                               Page 179 of 209
       EXHIBIT B

QUOTE FOR LEGAL SERVICES




         6

                           Page 180 of 209
February 6, 2026

Mr. Jonathan Seyferth
City Manager
City of Muskegon
933 Terrace St.
Muskegon, MI 49440

Re:    Quote for Legal Services

Dear Mr. Seyferth:

It is our understanding that the City Commission intends to discuss whether to seek a
Request for Proposal for Legal Services (“RFP”) at is Worksession on Monday February
9th. This Quote for Legal Services is provided for the Commission’s consideration in light of
the City’s longstanding relationship with Parmenter Law.

Firm History

For nearly 80 years, Parmenter Law has had the pleasure of serving as the City of
Muskegon’s legal counsel and serving the City’s residents and businesses. We value our
long history of operating in the City and our standing as one of its oldest businesses. Our
decades-long service provides the City with deep institutional knowledge of its ordinances,
personnel practices, litigation history, and development goals.

At Parmenter Law, we take a personal, professional and practical approach that defines our
client and community relationships as true partnerships. We proudly invest our time, talent,
and resources in supporting our community. In 2025, our attorneys served on the board of
directors for 16 local non-profit organizations and on various committees or volunteer roles
throughout the community.

Over the past five years, Parmenter Law has donated over $200,000 to local community
organizations and causes, including organizations like the Muskegon Rescue Mission, No
More Sidelines, Muskegon Young Black Professionals, and the Mission for Area People.
When the City has requested sponsorship for various programs or improvements,
Parmenter Law has been pleased to support those efforts. These contributions are in
addition to any private donations by our attorneys or staff.

Our investment in Muskegon reflects an alignment with the City’s priorities and residents,
reinforcing our commitment to the long-term health and success of the community we serve.




                                                                                        Page 181 of 209
Firm Experience

Our firm has performed general legal services for municipal entities dating back to the
1950’s including real estate, contracts, employment law, public finance issues, litigation,
open meetings act, freedom of information act, and construction matters. Our municipal
clients include the Cities of Montague, Muskegon, North Muskegon, Roosevelt Park and
Whitehall; Townships of Newfield and Otto; and Villages of Hesperia, Rothbury, and Shelby.
We also handle matters on a periodic basis for smaller, rural townships. We provide advice
to municipal authorities, most notably Muskegon Central Dispatch.

We know that some of the brightest and most experienced attorneys in Michigan practice
law with us. Our broad range of practice areas and our industry expertise set us apart from
other firms.

Our current shareholders consists of eight individuals (Anna Duggins, Brennen Gorman,
Chris Kelly, William Meier, Matt Mills, Josh Reece, Ben Reider, and John Schrier) and
seven attorneys who are employees (Josh Berndt, Jeanie Collela, George Johnson, Jake
Lovett, Kayla Kolbe, Nicole Osborn, and Kennedy Potts).

In 2025, 12 different attorneys worked on City-related projects or topics. Although Mr.
Gorman and Mr. Schrier are the external faces of Parmenter’s municipal team, the City
benefits from Parmenter’s team-based approach when working on the City’s behalf. This
ensures that the best-suited individuals handle the variety of needs, opportunities, and
challenges facing the City.

While all support staff (twenty-two full-time and four part-time) are available to assist City
staff, City staff most often interact with Taylor Anderson, Kina Billips, and Lisa Spyke.

Parmenter is well prepared to continue to provide the City of Muskegon General Legal
Services and Prosecution Services. We believe history has demonstrated that a single firm
providing both services is an efficient approach for the City. With the exception of a few
years, we have continued to prosecute all local ordinance violations for the City of
Muskegon since the 1950’s.

Our attorneys privately bill at hourly rates between $300 and $450. However, for City
matters, the City is charged a single municipal hourly rate regardless of whether the work is
performed by a shareholder or an associate attorney.

The rates quoted below reflect an additional rate freeze for the 2027-2028 fiscal year, taking
into account the City’s anticipated budget constraints. Our rates have not risen since July 1,
2024, and we have not sought any additional increase in recent years to offset higher-than-
expected costs, which we absorbed internally. We are confident that our rates are at or
below market rate for such services and lower than those paid by comparable Michigan
communities.




                                                                                         Page 182 of 209
       Year                         Attorneys            Paralegals
       2026-2027                    $195                 $95
       2027-2028                    $195                 $95
       2028-2029                    $200                 $100
       2029-2030                    $205                 $100
       2030-2031                    $210                 $105

An annual increase of $5 represents an approximate 2.6% annual increase, below the
estimated annual rate of inflation.

As a comparison of our rates to other communities:

   -   For the 2025-2026 fiscal year, the City of Norton Shores will pay its legal counsel
       $200 per hour and $225 per hour for the 2026-2027 fiscal year.

   -   In 2025, the City of Howell agreed to an hourly fee rate of $230 for attorney services.

   -   In 2025, Muskegon County agreed to an hourly fee rate of $270 for attorney services
       with annual increases of up to 5%.

   -   In 2024, the City of Manistee agreed to an hourly fee rate of $230 for shareholder
       attorneys, $205 for associate attorneys, and $100 for paralegal services.

   -   In 2023, the City of Big Rapids agreed to an hourly fee rate of $250 for attorney
       services, $170-$210 for associate attorneys, and $160 for paralegal services.

We would further note the results of the 2023 Michigan Bar Association Annual Attorney
Fee Survey, the most recent survey prepared by the Bar Association, indicated the average
hourly rate for municipal law was $217 per hour.

We believe that continuing the City’s relationship with Parmenter Law represents the most
efficient, cost-effective, and reliable path forward for the City.

If you would like to discuss this proposal or desire any further information, please do not
hesitate to reach out.

Thank you for your consideration.



Brennen J. Gorman
Shareholder

         Direct P: (231) 722-5427
         Direct F: (231) 722-5527
         Email: [email protected]




                                                                                          Page 183 of 209
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: June 9, 2026               Title: Rad Dads Agreement

Submitted by: Jonathan Seyferth, City Manager       Department: Manager's Office

Brief Summary:
For some time, the City and Rad Dads have been working towards an updated Participating
Agreement for their space in Trinity Health Arena. Attached is the updated agreement.

Detailed Summary & Background:
This updated Participation agreement brings Rad Dads' agreement into closer alignment with other
restaurants in the arena. The agreement also gives Rad Dad's the option to, at its own expense,
expand its outdoor eating area to include an upper deck (paragraph 27). Any expansion needs to
meet all zoning and building code approvals and application processes, and the cost would be
borne by Rad Dads.

The agreement, consistent with other agreements in the building, offers multiple renewal options — in
this case, 6 through 2056. With each renewal term, the monthly base rent payment will increase. If
Rad Dads chooses not to renew its agreement, it must provide the city with 6 months' notice. The
monthly base rent is listed on page 2, this does not include Common Area Maintenance (CAM) fees.

Paragraphs 20 & 21 outline the City's options if Rad Dads defaults on its agreement. The City must
give Rad Dads notice and a cure period if it defaults. If not cured, the city may terminate the
agreement. The specific steps are outlined in Paragraph 21.a.i.

The updated agreement includes arena participation payments to the teams in the arena
(paragraph 3c)

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                   Budgeted Item:
                                                     Yes           No           N/A      X

Fund(s) or Account(s):                              Budget Amendment Needed:
                                                     Yes           No           N/A      X

Recommended Motion:
none - for discussion only


                                                                                             Page 184 of 209
Approvals:                 Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review           X




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               AGREEMENT FOR MANAGEMENT OF A PORTION OF A LICENSED PREMISES
                          PURSUANT TO PARTICIPATION AGREEMENT

                     This Agreement for Management of a Portion of a Licensed Premises Pursuant to
             Participation Agreement (“Agreement”) is made May 12, 2026 (“Effective Date”), by and between
             the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon,
             Michigan 49440 (the “City”), and Rad Dads’, L.L.C., a Michigan limited liability company, of
             470 W. Western Avenue, Muskegon, Michigan 49456 (“Rad Dads”) (the City and Rad Dads
             collectively referred to herein as the “Parties”).

                                                             Background

                    A.     The City owns the Trinity Health Arena located at 470 W. Western Avenue,
             Muskegon, Michigan 49456 (the “Arena”). The City is responsible for the operation, maintenance,
             and improvements of the Arena and has the authority to authorize the use of portions of the Arena
             on an exclusive and non-exclusive basis.

                     B.       Rad Dads commenced operations in the Arena in 2018.

                     C.     The City is owner of a Class C liquor license issued by the Michigan Liquor Control
             Commission (“MLCC”) (the “License”). The Parties previously entered into that certain
             Participation Agreement dated March 3, 2022, pursuant to MLCC Rule 436.1041 to permit Rad
             Dads the limited use of the License for its bar/restaurant business (“Restaurant”) located within
             the Arena (the “Participation Agreement”.) A copy of the application to the MLCC for the
             Participation Agreement is attached hereto on Schedule 1.

                     D.      The Parties now wish to mutually terminate the Participation Agreement and enter
             into this Agreement, subject to MLCC approval pursuant to MLCC Rule 436.1041, to restate and
             clarify the terms and conditions within the Participation Agreement and continue to permit Rad
             Dads limited use of the License.

                     NOW THEREFORE, intending to be legally bound, the City and Rad Dads hereby agree
             as follows:

                    1.      Premises and Term. The City agrees to allow Rad Dads the exclusive right to use
             and manage the Premises, as depicted on the attached Exhibit A (the “Premises”), for the Term of
             this Agreement. The Initial Term of this Agreement shall commence upon the full execution of
             this Agreement by all Parties (the “Commencement Date”) and shall expire on March 22, 2031
             (the “Expiration Date”). Provided that Rad Dads is not in Default of this Agreement, as defined in
             Section 24 below, Rad Dads shall have six (6) additional five (5) year options to renew this
             Agreement (individually a “Renewal Term” and collectively the “Renewal Terms”). Unless Rad
             Dads gives the City six (6) months written Notice of its intent to not renew this Agreement for the
             next Renewal Term prior to the Expiration Date, the next Renewal Term shall automatically renew.
             Provided that Rad Dads does not give notice to not renew this Agreement, then upon each Renewal
             Term references in this Agreement to the “Term” shall thereafter include the Initial Term and any
             Renewal Term exercised. References to the Expiration Date shall thereafter be deemed to be the




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             last day of the Term or Renewal Term, unless terminated prior thereto pursuant to the terms of this
             Agreement.

                     2.     MLCC Participation Permit. Upon execution of this Agreement, the Parties agree
             to act in good faith and to utilize their best efforts to make application to the MLCC to approve
             this Agreement and either (i) confirm that the Parties current Participation Agreement will continue
             in good standing or (ii) approve a new participation agreement pursuant to MLCC Rule 436.1041.
             The Parties acknowledge that despite the MLCC’s approval of the current Participation Agreement
             that this Agreement remains contingent upon and shall only become effective upon the MLCC’s
             approval of this Agreement.

                     3.    Rent. “Rent” shall consist of Base Rent, additional charges for Common Area
             Maintenance (“CAM”), and the Arena Participation Payments, if any, as hereinafter set forth.

                            a.      Base Rent Payment. During the Initial Term and during each subsequent
                     Renewal Term properly and timely exercised, Rad Dads shall pay to the City the Monthly
                     Base Rent in the amount as set forth below, to be paid in advance on the first business day
                     of each calendar month during the Term, without demand:

                                             Term            Monthly Base Rent Payment
                                      Initial Term                   $3,155.05
                                      5/12/2026-
                                      3/22/31
                                      Renewal Term 2                 $3,407.45
                                      3/23/27-3/22/36
                                      Renewal Term 3                 $3,680.04
                                      3/23/36-3/22/41
                                      Renewal Term 4                 $3,974.44
                                      3/23/41-3/22/46
                                      Renewal Term 5                 $4,292.40
                                      3/23/46 - 3/22/51
                                      Renewal Term 6                 $4,635.79
                                      3/23/51-3/22/56

                             b.     CAM Payment. In addition to the Base Rent Payment, Rad Dads shall pay
                     to the City a monthly additional payment of $1,750.00 during the Initial Term for CAM
                     expenses, to be paid in advance on the first business day of each calendar month during the
                     Term, without demand (“CAM Payment”). Should Rad Dads elect to extend the term of
                     this Agreement as specified in Section 1, Rad Dad’s CAM payment shall increase on the
                     anniversary of each calendar year in the same amount of any increase in the Consumer
                     Price Index (“CPI”) from the previous calendar year or by five percent (5%), whichever is
                     lower. In no event shall the CAM payment be decreased due to changes in the CPI. All
                     CAM payments must be paid in advance on the first business day of each calendar month,
                     without demand.



                                                                                                               2



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                              c.      Arena Participation Payment. Rad Dads will either (1) work with the
                     Arena’s Hockey League team, Soccer League team, and Indoor Football League team
                     (collectively, the “Teams”), to reach an agreement for compensation for each game played
                     in the Arena, or (2) pay to the City a sum equal to the total of the following: (i) $500 for
                     each United States Hockey League game, (ii) $400 for each Major Arena Soccer League
                     game or comparable arena soccer league, and (iii) $400 for each Professional Indoor
                     Football League game or comparable indoor football league (individually a “Game” or
                     collectively the “Games”), that take place at the Arena each month (the “Arena
                     Participation Payment”). Rad Dad’s obligation to make the Arena Participation Payment
                     only arises when the arena has sold at a minimum Twelve Hundred (1,200) tickets to any
                     such game. Upon written verification from the City of the paid attendance to any such
                     game, Rad Dad’s will pay the Arena Participation Payment on the first day of the calendar
                     month following a month in which a Game occurred. By way of example, if there are two
                     (2) Hockey League games, one (1) Soccer League game, and one (1) Indoor Football
                     League game that take place in the month of January, then in addition to the Base Use
                     Payment and Additional Use Payment due to the City on February 1st, Rad Dads would
                     owe the City an Arena Participation Payment in the amount of $1,800.00. Following
                     collection of the Arena Participation Payment, the City will forward to each Team its
                     portion of the Arena Participation Payment. As of the Effective Date, the “Hockey League”
                     team means the Muskegon Lumberjacks, “Soccer League” team means the Muskegon
                     Risers, and “Indoor Football” team means the Muskegon Ironmen. Notwithstanding the
                     foregoing, Hockey League, Soccer League, and Indoor Football refers to any Hockey,
                     Soccer, and Indoor Football team that is similar in level and character to the Muskegon
                     Lumberjacks, Risers, and Ironmen. It is the intent of the parties that if any additional teams
                     similar in level and character host a game that this Arena Participation Payment would
                     apply to Rad Dads.


                             d.     Payment; Late Charge. The Base Rent Payment, CAM Payment, and
                     Arena Participation Payment are collectively referred to herein as “Rent”. The City shall
                     have all the same rights and remedies for non-payment of Rent or the Debt Payment. The
                     Rent and Debt Payment shall be paid to the City via ACH. The City shall provide Rad
                     Dads with proper and correct account information and instructions for Rad Dads to pay
                     Rent and Debt Payments via ACH. Any Rent or Debt Payment that is not received in full
                     within five (5) business days after such Rent or Debt Payment is due will be subject to a
                     late charge equal to Five Hundred Dollars ($500.00) per late payment of Rent or Debt
                     Payment.


                     4.       Rad Dads Compensation.

                            a.      Base Compensation. Rad Dads shall retain one hundred percent (100%) of
                     the net profits generated from the operation of the Restaurant, including the sale of
                     alcoholic beverages under the License, non-alcoholic beverages, food, merchandise, and
                     cover charges and other goods and services which would not constitute a violation of
                     MLCC rules. The term “net profits” as used in this Agreement shall mean all revenue

                                                                                                                 3



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                     derived from the operation of the Restaurant less all expenses related to the operation of
                     the Restaurant. During the term of this Agreement, at the request of the City, Rad Dads
                     shall deliver to the City an income statement certified by an officer or manager of Rad
                     Dads’ setting forth its profits. In the event the City, in its reasonable and necessary
                     discretion as the Licensee needs additional information, Rad Dads’ will grant to the City
                     the right to have access to inspect all books, accounts, records and reports, that may be kept
                     by Rad Dads’ showing all financial information related to the operation of the Restaurant.
                     If a review discloses any discrepancy in required record keeping, the parties shall mutually
                     agree on a Certified Public Accountant to review the financial statements and records of
                     Rad Dads’ and determine compliance. Such determination shall be binding on the parties.
                     The City shall handle all information derived from Rad Dads books, accounts, and records
                     in compliance with the City’s policies on confidentiality and non-disclosure.

                              b.      Closure Credit. The City may host events that require the temporary
                     closure of Rad Dads. The City shall not owe Rad Dads any compensation or consideration
                     for the first twenty (20) hours (per each calendar year) that the Arena causes the temporary
                     closure of Rad Dads. For each hour that exceeds twenty (20) hours, the City shall credit
                     Rad Dads a Rent credit of Two Hundred Fifty Dollars ($250.00) per hour. In addition to
                     any Rent credit, if the temporary closure of Rad Dads is for an event at which tickets are
                     sold, the City will reimburse Rad Dads One Dollar ($1.00) per each ticket sold. The City
                     shall account to Rad Dads regarding the number of tickets sold at any such event within
                     ten (10) business days following the event. No closure credits will be granted to Rad Dads
                     if a closure is made at Rad Dads discretion or is due to Rad Dads failure to pay city income
                     taxes, business license fees, or its failure to comply with any local ordinances, fire codes,
                     or other governmental or administrative rules and regulations.

                            c.       Notice Regarding Closure. The City shall give Rad Dads at least ten (10)
                     business days written Notice of the request for temporary closure. In the event that such
                     Notice is not timely, the City shall credit Rad Dads a One Thousand Dollars ($1,000.00)
                     Rent credit in addition to any Rent Credit Rad Dads receives pursuant to Section 4.b above.

                     5.    Inventory Purchase. To the extent required by MLCC rules, Rad Dads shall order
             and purchase all alcohol used by Rad Dads in the operation of its Restaurant. Rad Dads must
             reimburse the City for all alcohol purchases within thirty (30) days of invoice from the City.
             Nonpayment within thirty (30) days of the City’s invoice shall be deemed an immediate Default
             under this Agreement.

                     6.     Taxes. Rad Dads agrees that it will pay all expenses in connection with the use and
             management of the Restaurant, the Premises, and all fixtures therein, including, but not limited to,
             all taxes, permits, fees, license fees (except for the License) and assessments lawfully levied or
             assessed upon the Restaurant, Rad Dads personal property, or upon its use of the Premises.

                     7.      Utilities and Other Service Charges. The City will pay for all water, sewer, gas,
             electricity, heat, sewage, and trash pickup costs for the Arena, inclusive of the Premises, as well
             as for internet, cable, and DirectTV for Rad Dad’s use. Notwithstanding the foregoing, the City
             may change cable and television subscriptions at City’s reasonable discretion. The City however

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             shall provide a sports streaming channel at the City’s expense. Rad Dads is responsible for all
             telephone costs it chooses to incur. Rad Dad’s has the right to obtain additional streaming services,
             at Rad Dad’s expense.

                     8.       Interruption of Services. The City does not warrant that any of the services or
             utilities referred to in this Agreement will be free from interruption, curtailment, or suspension,
             and Rad Dads acknowledges that any one or more of such services may be suspended by reason
             of accident or repairs, Alterations (defined in Section 17 below), or improvements, or by reason of
             causes beyond the control of the City. Except as may otherwise be provided herein, no
             interruption, curtailment, or suspension of service shall be deemed an eviction or disturbance of
             Rad Dads use of the Premises or any part thereof, or render the City liable to Rad Dads for
             damages, or relieve Rad Dads from the full and complete performance of all Rad Dads obligations
             under this Agreement, nor shall there be any abatement of any Rent Payment or Debt Payment.
             Rad Dads shall not be permitted to install new or additional utility facilities anywhere throughout
             the Premises without the prior consent of the City. Notwithstanding the foregoing, any interruption
             of utilities directly and solely caused by the intentional misconduct or gross negligence of the City,
             resulting in Rad Dads inability to conduct its business at the Arena in whole or in part for a period
             of ten (10) consecutive days that Rad Dads would otherwise be open, will entitle Rad Dads to a
             pro rata abatement of the monthly Rent Payment payable for each day that such services are
             interrupted and Rad Dads is required to close.

                     9.       Improvements; Maintenance and Repair.

                             a.      Rad Dads Obligations. During the Term, subject to the City’s obligations
                     hereunder, Rad Dads, at its sole cost and expense, shall keep and maintain the Premises,
                     including any improvements or permitted Alterations thereon, in good order and condition,
                     and perform any maintenance and make necessary repairs and replacements necessary to
                     keep the Premises, improvements, and any Alterations in good order and condition,
                     ordinary wear and tear excepted. All maintenance, repairs, replacements, and renewals
                     made to the Premises by or on behalf of Rad Dads shall be made and performed (i) at Rad
                     Dads sole cost and expense, (ii) by fully licensed, insured, and bonded contractors and
                     mechanics, (iii) in a good and workmanlike manner, (iv) with materials at least equal in
                     quality, value, and utility to those used in the original work or installation, (v) in accordance
                     with such reasonable requirements as the City may impose with respect to insurance to be
                     obtained by Rad Dads or Rad Dads contractors with respect to such work, (vi) in full
                     compliance with all applicable laws, codes, ordinances, and regulations of governmental
                     authorities having jurisdiction over the Premises, and (vii) free and clear of any mortgage,
                     pledge, lien, encumbrance or security interest of any kind, including any mechanic’s liens.

                             b.     The City Obligations. During the Term, the City shall be responsible for
                     Material Repairs to any Structural Components or Building Systems (as each of those terms
                     are defined below). Notwithstanding anything to the contrary herein, (i) any maintenance,
                     repairs, or replacements of any kind that are necessitated due to the acts, omissions,
                     negligence or intentional misconduct of Rad Dads or Rad Dads shareholders, directors,
                     owners, managers, agents, servants, employees, contractors, invitees, or licensees (“Rad
                     Dads’ Agents”), or as a result of Rad Dads failure to perform its obligations under this

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                     Agreement, shall be Rad Dads responsibility to perform at its sole cost, and (ii) the
                     determination as to whether a repair or a replacement is needed shall be made by the City
                     in its sole discretion. For purposes of this Agreement, “Structural Component” shall mean
                     the following Structural Components of the improvements located at the Premises: roof,
                     footings, exterior and supporting walls, slab, structure, foundations, and structural steel
                     columns and girders. Also, for purposes of this Agreement, “Building Systems” shall mean
                     HVAC system, plumbing, internal wiring and electrical.

                             c.      Common Area Maintenance. During the Term, the City shall be
                     responsible for furnishing “janitorial services” for the exterior of the building and in lobby
                     areas and restrooms used by the public, exclusive of those areas used and managed by Rad
                     Dads, the cost of which is included in the CAM Payment. The City shall allow Rad Dads
                     the use of the City’s dumpsters, the cost of such service is included in the CAM Payment.
                     The City shall maintain in good working order, all public ways, seats and eating areas and
                     structures of the Arena, including plate glass, roof, and outer walls and heating, electrical
                     and plumbing supply sites, air conditioning and hot water supply units. As used in this
                     Agreement, the phrase “common area maintenance” or “CAM” means the maintenance
                     required to be performed by City for the common or joint use and benefit of Rad Dads,
                     licensees and invitees of the Arena and all items of expense relating to operating,
                     managing, supervising, equipping, policing and protecting, lighting, repairing, replacing,
                     and maintaining the appearance, safety and utility of the common areas in the Arena. The
                     City shall also be responsible to manage, operate, and maintain all common areas within
                     the Arena and environs owned by the City in good order and condition, and perform any
                     maintenance and make necessary repairs and replacements necessary to keep the Arena
                     and environs, its improvements, and any Alterations in good order and condition including
                     all parking areas, but not limited to, plowing of snow, paving, and repair of potholes. The
                     City shall also maintain the common areas in an attractive condition. The City’s obligation
                     for CAM shall apply to all common areas defined as all other areas of the Arena that are
                     not within Rad Dads control and not part of the Premises, but including any area that has
                     not been established by the City for exclusive use.

                              d.     Notice. If any maintenance, repairs and/or replacements are required to be
                     made to the Premises by the City under this Agreement, Rad Dads shall promptly notify
                     the City and the Arena Manager in writing. Except as otherwise set forth herein, the City
                     shall not be liable to Rad Dads for any damage or inconvenience, and Rad Dads shall not
                     be entitled to any abatement or reduction of any Use Payment, by reason of any
                     maintenance, repairs, replacements Alterations, or additions made or required to be made
                     by the City under this Agreement.

                             e.     Failure to Maintain and Repair and Failure to Perform Common Area
                     Maintenance. If Rad Dads fails to commence making any repair, replacement, renewal,
                     or maintenance under this Agreement, after ten (10) days prior written Notice from the City
                     of the need for any such repair, replacement, renewal, or maintenance, or if the City fails
                     to commence making any repair, replacement, renewal, or maintenance, including CAM
                     under this Agreement, after ten (10) days prior written Notice from Rad Dads of the need
                     for any such repair, replacement, renewal, or maintenance except in the case of an

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                     emergency (in which case only Notice of the need for such repair, replacement, renewal,
                     or maintenance under this Agreement shall be required) and same has not been completed
                     within ten (10) days of such Notice, or, in the case of an emergency, is not promptly
                     completed, the other Party (the “Repairing Party”) may make such repairs or replacements,
                     or perform such maintenance or cause such repairs or replacements to be made or
                     maintenance to be performed. On the Repairing Party’s written Notice of the performance
                     and cost of any maintenance, repairs, renewals, or replacements made pursuant to this
                     section, the other Party must promptly reimburse the Repairing Party for the reasonable
                     costs of such maintenance, repair, or replacements incurred by the Repairing Party pursuant
                     to this section, together with interest on any such sum at the rate of eight percent (8%) per
                     annum from the date that is fifteen (15) days following the date of the Notice until the date
                     paid. Prior to making any emergency repairs, the Repairing Party shall use reasonable
                     efforts under the circumstances to contact the other Party to give that Party an opportunity
                     to perform its obligations hereunder. This section is not the exclusive remedy, and each
                     Party preserves all other claims allowed at law.

                     10.     Use. The Premises may only be used by Rad Dads for the operation of its Restaurant
             business open to the general public and such use includes any and all special events conducted on
             the Premises that are reasonably related to Rad Dads Restaurant business and for no other reason
             (the “Permitted Use”). Rad Dads will use the Premises in a careful, safe, and proper manner and
             will not commit waste, overload the floor or structure of the Premises, or subject the Premises to
             use that would damage the Premises or that would otherwise make insurance difficult or
             impossible to obtain. Rad Dads shall not permit any objectionable or unpleasant odors, smoke,
             dust, gas, noise, or vibrations to emanate from the Premises other than those that are typical from
             the business operated for the Permitted Use. Rad Dads shall at all times comply with all MLCC
             rules and regulations.

                     11.      Quiet Enjoyment. The City covenants to Rad Dads that the City will not obstruct,
             interfere with, or take away from Rad Dads beneficial use of the Premises and will not act or fail
             to act so as to impair the character and value of the Premises and will not allow the site lines and
             view from Rad Dads into the Arena, or from the Arena into Rad Dads to be totally obstructed,
             except as otherwise may be permitted in this Agreement. The City retains the right to construct a
             physical barrier, in addition to the existing physical barrier, between Rad Dads and the Arena
             concourse that does not significantly impair visibility from Rad Dads space into the Arena. The
             barrier may be transparent or see-through in nature in order to keep Rad Dads patrons from entering
             the Arena by means other than the Gate (as defined below).

                     12.     Arena Entrance from Rad Dads. The Premises includes a gate that allows access
             from the Premises to the Arena concourse area (the “Gate”). The Gate is as marked on Exhibit A.
             Rad Dads may have the Gate open to allow patrons access between the Arena and the Premises
             during events held at the Arena when the Arena is open to the general public, including but not
             limited to during all Games. When the Arena is open to the general public, the Gate does not need
             to be monitored by a security attendant. Rad Dads may also have the gate open to allow patrons
             access between the Arena and the Premises during Games and other ticketed events as permitted
             by the City; however, a security attendant must be present at the Gate. The security attendant will
             be from the same company servicing security to the rest of the Arena during the Games or ticket

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             event. The security attendant shall be responsible for scanning tickets and preventing unauthorized
             access into the Arena. If Rad Dads desires to have the Gate open during Games, the cost of the
             security attendant will be borne by Rad Dads. The City will bill Rad Dads its share of the costs
             monthly and payment shall be made within five (5) business days. When the Gate is opened, food
             and alcoholic beverages may flow between the Premises and the Arena concourse.
             Notwithstanding the foregoing, alcoholic beverages must stop entering the Arena concourse from
             the Premises when last call for alcoholic beverages sold within the Arena is announced. Last call
             is typically announced in the Arena at 9:00 pm; however, the time for last call may vary between
             Games and other ticketed events and the City will directly communicate such time to Rad Dads.
             Notwithstanding anything herein to the contrary, the Gate shall not be opened during any (i)
             MHSAA games or practices, (ii) graduations, or (iii) other events as determined by the City in its
             sole but reasonable discretion upon ten (10) business days written Notice to Rad Dads.

                     13.     Liens. Rad Dads has no express or implied authority to create or place, or permit
             to be placed, any mechanic’s lien, construction lien, charge, or any other lien or encumbrance of
             any kind whatsoever (“Liens”) upon the Premises or any improvements thereon, including to those
             who may furnish materials or perform labor for any construction or repairs, and will not subject
             the Premises or any part thereof or the City’s interest in the Premises to any Lien of any kind. Rad
             Dads shall at all times keep the Premises free from any and all Liens arising out of any work
             performed, materials furnished, or obligations incurred by or for Rad Dads or any of Rad Dads’
             Agents. If any Liens is filed as a result of the act or omission of, or work performed by or at the
             direction of, Rad Dads or any of Rad Dads’ Agents, Rad Dads will cause such Liens to be
             immediately discharged, but in no event later than ten (10) days after Notice from the City thereof.
             If Rad Dads fails to cause the Liens to be fully discharged within the ten (10) day period, then, in
             addition to any other right or remedy, the City will be entitled, but not obligated to, discharge the
             same by paying the amount claimed to be due or by deposit or bonding proceedings. Rad Dads
             will indemnify and save the City and the City’s Agents harmless from all Losses (defined below)
             to the extent arising from any Liens filed as a result of the act or omission of, or work performed
             by or at the direction of Rad Dads or any of Rad Dads’ Agents or arising from Rad Dads failure to
             timely discharge same. Rad Dads shall reimburse the City for any and all reasonable costs and
             expenses which may be incurred by the City by reason of the filing of any such Liens and/or the
             removal of same, such reimbursement to be made within five (5) days after Rad Dads receipt of
             Notice from the City. The failure of Rad Dads to pay any such amount to the City within said five
             (5) day period shall carry the same consequences as failure to pay any installment of Use Payment
             or Debt Payment.

                     14.     Compliance with Law. The City agrees that during the Term, it will, at its own
             cost and expense, promptly company with all applicable federal, state, county, city and municipal
             or other governmental or quasi-governmental statutes, charters, laws, rules, orders, codes, decrees,
             regulations and ordinances affecting the portions of the Arena that are common to all Rad Dads of
             the Arena (i.e. all positions of the Arena that are not leased to other parties) (the “Common Areas”),
             or the occupancy, use, or repair thereof, including, without limitation, the Americans With
             Disabilities Act and the Americans with Disabilities Act Amendments Act (together, “ADA”), all
             rules, orders, and regulations of all public officers including the police, health and fire departments
             and with the National Board of Fire Underwriters or other similar organizations for the prevention
             of fire or the corrections of hazardous conditions, and all other orders, ordinances, judgments,
             regulations, codes, directives, permits, licenses, covenants and restrictions of record now or
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             hereafter applicable to the Common Areas or the occupancy, use, or repair thereof (collectively,
             “Legal Requirements”). Rad Dads agrees that during the Term, it will, at its own cost and expense,
             promptly comply with: (a) all present and future federal, state, county, city and municipal or other
             governmental or quasi-governmental statutes, charters, laws, rules, orders, codes, decrees,
             regulations and ordinances affecting the Premises or the occupancy, use, or repair thereof,
             including, without limitation, the Legal Requirements, including making such Alterations and
             modifications to, at, or about the Premises that are required by Legal Requirements whether as the
             result of Rad Dads use or operation of the Premises or otherwise; and (b) the requirements of all
             insurance companies having policies of general liability, fire, or other insurance at any time in
             force and effect with respect to the Premises and its permanent improvements. Following the
             execution of this Agreement Rad Dads shall be responsible for all ADA Title III compliance in,
             on, and throughout the Premises, including any improvements or other work to be performed in
             the Premises under or in connection with this Agreement. Rad Dads will also be responsible for
             the cost of ADA “path of travel” requirements arising from or required by Alterations in or the use
             of the Premises.

                      15.     Sublease or Assignment. Rad Dads shall not assign this Agreement without the
             prior written approval of the City. Any transfer or change in the ownership of Rad Dads will be
             deemed an assignment of this Agreement requiring approval by the City. Any attempted transfer
             or change in ownership without the City’s consent will be deemed void and constitute a non-
             curable Rad Dads Default under this Agreement. Rad Dads request for consent will include the
             details of the proposed assignment, transfer, or change in ownership including the name, business
             and financial condition of the prospective transferee, financial details of the proposed transaction,
             criminal history, and any other information the City reasonably deems relevant in its sole
             discretion. No assignment of this Agreement by Rad Dads, whether in whole or in part, nor the
             granting of any consent by the City with respect thereto, shall relet or relieve Rad Dads from
             liability for the Use Payment, Debt Payment, or performance of any other obligations of Rad Dads
             under this Agreement, unless otherwise agreed by the City and Rad Dads in writing.

                     16.    Risk of Loss. The risk of loss, damage, or destruction with respect to the Premises
             and all of Rad Dads personal property, improvements, or permitted Alterations will be borne by
             Rad Dads at all times. If by reason of any cause the Rad Dads space is damaged to such an extent
             that the Rad Dads space is unusable in whole or in substantial part, then:

                             a.     If the repairs and rebuilding necessary to restore the Rad Dads space to its
                     condition prior to the occurrence or the damage can be in the reasonable judgment of Rad
                     Dads be completed within ninety (90) days from the date on which the damage occurred,
                     Rad Dads shall so notify the City in writing and shall proceed promptly with such repairs
                     and rebuilding, and in such event the use of the Premises shall be abated for the period
                     from the date of the occurrence of such damage to the date upon which such repairs and
                     rebuilding are completed; and

                             b.   If such repairs and rebuilding cannot, in the reasonable judgment of Rad
                     Dads, be completed within ninety (90) days, the City and Rad Dads can mutually agree
                     either to:


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                                       i.   Have Rad Dads proceed promptly with said repairs and rebuilding,
                              in which event the said use shall be abated; or

                                       ii.     To terminate this Agreement.

                     17.      Insurance.

                              a.      The City Obligations. During the Term, the City will maintain all risk
                     (“All Risk”) property insurance, insuring the Arena, but excluding Rad Dads personal
                     property and any improvements or permitted Alterations made by Rad Dads, in an amount
                     as reasonably determined by the City. The City may also carry, at the City’s option,
                     commercial general public liability insurance and such other insurance and additional
                     coverages as it may deem necessary, in its reasonable discretion, including, but not limited
                     to, flood insurance and rent loss insurance (which insurance shall be in addition to, and not
                     in lieu of, any insurance required to be maintained by Rad Dads). The City shall not be
                     obligated to insure any of Rad Dads personal property, any other furniture, equipment,
                     trade fixtures, machinery, goods, personal property or supplies which Rad Dads may keep
                     or maintain in the Premises or any improvements or permitted Alterations made by Rad
                     Dads upon the Premises. Rad Dads shall not be named as an additional insured on any
                     policy of liability insurance maintained by the City. Rad Dads shall not have any interest
                     in or benefit under other insurance that the City may, in its reasonable discretion, decide to
                     obtain and maintain under this Agreement. As the owner of the License, the City shall also
                     maintain liquor liability insurance issued by a carrier accepted by MLCC and either
                     complete form LC-95 or file a similar Proof of Liquor Liability Insurance form which has
                     been approved by MLCC. Rad Dads shall be named as an additional insured on the liquor
                     liability policy and a copy shall be provided to Rad Dads.

                            b.      Rad Dads Obligations. At all times during the Term, Rad Dads, at its
                     expense, shall maintain in effect the following insurance, with insurers authorized to do
                     business in the State of Michigan:

                                     i.      Insurance coverage on all of Rad Dads personal property and other
                              contents at the Premises, as well business interruption insurance coverage with
                              commercially reasonable limits.

                                      ii.     Commercial general liability insurance, which shall include
                              premises liability, contractual liability, personal and advertising injury, and
                              products/completed operations coverage. Such policy shall insure against claims
                              for bodily injury, death, or property damage occurring on, in, or about the Premises,
                              with limits of not less than One Million Dollars ($1,000,000.00) per occurrence and
                              Two Million Dollars ($2,000,000.00) in aggregate, as well as coverage for damage
                              to Premises with not less than a Five Hundred Thousand Dollar ($500,000.00) limit,
                              and an umbrella policy with at least a One Hundred Thousand Dollar
                              ($1,000,000.00) limit. All such policies shall include the City as an additional
                              insured on a primary basis with a waiver of subrogation in accordance with this
                              Section 12.

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                                       iii.   Special Form All Risk property insurance, insuring all of Rad Dads
                              personal property and any Fixtures, permitted Alterations made by Rad Dads, or
                              improvements that are the responsibility of Rad Dads located on the Premises, equal
                              to the full Replacement Cost of such property.

                                      iv.    Workers’ compensation insurance or self-insurance, and other
                              similar insurance covering all persons employed in connection with Rad Dads
                              business as required by applicable laws of the State of Michigan.

                              c.     Insurance Standards. All insurance required by Section shall be carried
                     with companies licensed to do business in Michigan having an A.M. Best’s rating of at
                     least A-/VII and shall be written as primary policy coverage and not contributing with, or
                     in excess of, any coverage carried by the City. All policies must name Rad Dads as the
                     named insured Party and, except for worker’s compensation (if applicable) and other
                     employer-related policies, and insurance on Rad Dads personal property, all policies shall
                     name as additional insureds or loss payees, as applicable, the City (on a primary basis) and
                     its successors or assigns as their interests may appear and shall endeavor to provide at least
                     thirty (30) days written Notice to any additional insureds before cancellation or material
                     modification. Furthermore, all insurance policies that Rad Dads is required to maintain
                     will provide coverage to the City whether or not the event giving rise to the claim is alleged
                     to have been caused in whole or in part by the acts, omissions, or negligence of the City;
                     all policies must be primary, with any policies of the City being excess, secondary, and
                     noncontributing. Upon commencement of this Agreement and as requested by the City
                     from time to time, Rad Dads shall furnish the City with certificates issued by its insurance
                     agent evidencing the coverage required by Section 12(b) above or replacements and
                     renewals thereof. For purposes of this Agreement, “Replacement Cost” shall mean the
                     actual Replacement Cost of the property requiring replacement from time to time, less
                     exclusions provided in the standard form of fire insurance policy.

                              d.     Subrogation. The City and Rad Dads, on behalf of themselves and their
                     insurers, each hereby waives any and all rights of recovery against the other, the agents,
                     advisors, employees, members, officers, directors, partners, trustees, beneficiaries and
                     shareholders of the other and the agents, advisors, employees, members, officers, directors,
                     partners, trustees, beneficiaries and shareholders of each of the foregoing (collectively,
                     “Representatives”), for loss of or damage to its property or the property of others under its
                     control, to the extent that such loss or damage incurred by the waiving Party is actually
                     covered by any insurance policy in force (whether or not described in this Agreement) at
                     the time of such loss or damage, or required to be carried under this Section, less any
                     deductibles. All property insurance carried by either Party will contain a waiver of
                     subrogation against the other Party to the extent such right was waived by the insured Party
                     prior to the occurrence of loss or injury. If Rad Dads fails to insure Rad Dads personal
                     property within the Premises, Rad Dads shall conclusively be deemed to have waived any
                     claim against or recovery from the City to the extent that any such claim or recovery would
                     have been covered by an All Risk casualty insurance policy for such personal property and
                     contents and therefore would have been within the scope of a waiver of subrogation
                     contained in such policy of insurance.

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                     18.      Alterations and Additions.

                              a.     Approval. Except for mere decorations and Permitted Work Items (defined
                     below) that are necessary for Rad Dads operations, Rad Dads shall not make any structural
                     or non-structural changes, alterations, additions, modifications, or improvements to the
                     Premises or the improvements thereon, or install any Fixtures in or to the Premises (any of
                     the foregoing, “Alterations”) without the prior written consent of the City, which may be
                     withheld in the City’s sole discretion. All permitted Alterations, whether structural or
                     nonstructural, shall be performed in a good and workmanlike manner and shall be done at Rad
                     Dads sole cost and expense and in compliance with all Legal Requirements. Upon the City’s
                     request, Rad Dads will deliver copies of all governmental permits, authorizations,
                     approvals, and certificates related to such Alterations.

                              b.      Permitted Work Items. “Permitted Work Items” are considered Alterations
                     that (i) do not cost more than $10,000.00, (ii) does not modify or affect the roof, plumbing,
                     HVAC, or electrical systems, foundation, slab, structural steel columns and girders, or any
                     other Structural Components of the Premises or otherwise affect the structural integrity of
                     the Premises, and (iii) does not create, cause, or result in any repair or replacement
                     obligations of the City. Notwithstanding the foregoing, the City shall have no maintenance,
                     repair, or replacement obligations with respect to any Alterations, all of which shall be the
                     responsibility of Rad Dads; and in no event shall Rad Dads be permitted to develop, improve,
                     or otherwise build or place any structures or improvements on any of the vacant portions of
                     the Premises without the prior consent of the City which is subject to the City Commission
                     approval and all applications and procedures required to request approval.

                     19.      Indemnification. Rad Dads covenants and agrees to indemnify, defend and save
             the City and the City’s Agents harmless from and against any and all claims, demands, expenses
             (including reasonable costs and reasonable attorney fees), Losses, suits, causes of action, penalties,
             taxes, fines, liabilities, and damages (“Losses”), whether brought by any third Party or directly by
             the City or any of the City’s Agents, to the extent arising from or caused by (i) any occurrence in
             or about any part of the Premises during the Term, including, without limitation, injury to persons
             or damage to property, (ii) the use of the Premises or any part thereof by Rad Dads, any of Rad
             Dads’ Agents, or any person in or about the Premises with the express or implied consent of Rad
             Dads, and (iii) any Rad Dads Default or any failure to perform or comply with or breach by Rad
             Dads of any Legal Requirement or any covenant, agreement, representation, or warranty made by
             Rad Dads pursuant to this Agreement; except, in any case, to the extent any such damage, loss,
             death or injury is caused by the gross negligence or willful misconduct of the City or the City’s
             Agents or the breach of this Agreement by the City. Rad Dads further agrees to pay the City and
             to indemnify the City and the City’s Agents for all reasonable attorney fees and expenses incurred
             in enforcing the terms of this Agreement or any other rights or remedies of the City assuming only
             if the City is the prevailing Party. Rad Dads obligations hereunder shall not be negated nor reduced
             by virtue of an insurance carrier’s denial of coverage for the occurrence or event which is the
             subject matter of the claim or refusal to defend.

                     20.    Default by Rad Dads. The occurrence of any one of the following shall constitute
             an event of default by Rad Dads (“Rad Dads Default”):

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                           a.      Failure by Rad Dads to pay any installment of the Use Payment, Debt
                     Payment, or other sum required to be paid by Rad Dads pursuant to this Agreement in full
                     when due.

                            b.       Any violation of the rules and regulations of the MLCC or any violation of
                     any law, rule, ordinance, or regulation by Rad Dads.

                              c.       Rad Dads abandons or vacates the Premises before the Expiration Date.

                              d.      Filing of a petition against Rad Dads for adjudication of it as a bankrupt or
                     insolvent, or for its reorganization or the appointment of a receiver or trustee for the benefit
                     of its creditors, if such petition is not dismissed within sixty (60) days of filing; or the filing
                     of such a petition by Rad Dads; or an assignment by Rad Dads for the benefit of creditors.

                              e.    Rad Dads shall attempt or there shall occur any assignment, subleasing, or
                     other transfer of Rad Dads interest in or with respect to this Agreement or the Premises
                     except as otherwise expressly permitted in this Agreement.

                            f.     Rad Dads fails to continuously maintain any insurance required to be
                     maintained by Rad Dads pursuant to this Agreement.

                              g.   Rad Dads breaches or otherwise fails to perform or comply with any other
                     covenant or condition of this Agreement or to abide by any term of this Agreement.

                              h.       Rad Dads dissolves or otherwise fails to maintain legal existence.

                     21.      The City’s Remedies.

                              a.     If any default by Rad Dads under this Agreement shall have occurred then
                     Rad Dads shall have ten (10) days to cure such default following written notice from the
                     City. The City agrees to extend such ten (10) cure period if the City finds in its sole
                     discretion that Rad Dads is taking all reasonable steps to cure such default and the default
                     cannot be cured within ten (10) days due to factors outside of Rad Dads control.
                     Notwithstanding the foregoing, if Rad Dads has received written Notice twice from the
                     City of any default during the Term, then Rad Dads shall not receive any further cure period
                     or Notice of defaults but shall instead be deemed to be in immediate default under this
                     Agreement and, in addition to pursuing any and all remedies available to the City at law or
                     equity, the City at its option may pursue any one or more of the following remedy options:

                                       i.    Terminate this Agreement by giving Rad Dads written Notice of
                              such termination, in which event, the Term and all right, title, and interest of Rad
                              Dads hereunder shall end on the date specified in such notice.




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                                       ii.    With or without terminating this Agreement, reenter the Premises,
                              or any part thereof, and relet, or attempt to relet, any or all parts of the Premises by
                              giving Rad Dads written Notice of such.

                                       iii.   Enforce the provisions of this Agreement and enforce and protect
                              the rights of the City hereunder by a suit or suits in equity or at law for the specific
                              performance of any covenant or agreement contained herein, and for the
                              enforcement of any other appropriate legal or equitable remedy, including without
                              limitation, injunctive relief, recovery of all moneys due or to become due from Rad
                              Dads under any provision of this Agreement, and any other damages incurred by
                              the City by reason of Rad Dads Default under this Agreement.

                                      iv.     For any violation of the License, the City may impose any costs,
                              fines, or fees it incurs due to such violation on Rad Dads and Rad Dads shall
                              immediately reimburse the City for such costs, fines, or fees.

                             b.     If the City exercises any of the remedies provided above, then Rad Dads
                     shall surrender its use of and vacate the Premises immediately.

                             c.      In the event of termination of this Agreement or reentry of the Premises or
                     any part thereof, with or without terminating this Agreement, such termination or
                     repossession shall not release Rad Dads, in whole or in part, from Rad Dads obligation to
                     pay the Use Payment, Debt Payment, and all other sums required to be paid by Rad Dads
                     for the full Term, and the aggregate amount of the Use Payment, Debt Payment, and all
                     other sums required to be paid by Rad Dads during the Term shall, at the option of the City,
                     be immediately due and payable by Rad Dads to the City, and the City shall have the right
                     to immediate recovery of all such amounts.

                             d.      In any such case, the City may (but shall be under no obligation to except
                     as may be required by law) relet or grant the use and occupancy of the Premises or any part
                     thereof, for such fees, time (which may be for a term extending beyond the Term of this
                     Agreement), and terms as the City, in the City’s sole discretion, shall determine. The City
                     shall not be required to accept any Rad Dads offered by Rad Dads or to observe any
                     instructions given by Rad Dads relative to such reletting or grant of use and occupancy.

                            e.      All rights and remedies of the City under this Section shall be cumulative,
                     and none shall exclude any other right or remedy provided by law or by any other provision
                     of this Agreement. All such rights and remedies may be exercised and enforced
                     concurrently and whenever, and as often, as occasion for their exercise arises. The rights
                     and remedies of the City, and the obligations and liabilities of Rad Dads, under this Section
                     and elsewhere in this Agreement shall survive the termination of this Agreement and/or
                     Rad Dads usage right.

                     22.    Default by the City. Nothing contained in this Agreement shall be construed as
             limiting or precluding the recovery by Rad Dads of any sums or damages or equitable relief to
             which, Rad Dads may lawfully be entitled by reason of any default hereunder on the part of the

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             City. A default by the City hereunder means its failure to abide by any term of this Agreement. If
             any default by the City under this Agreement shall have occurred and Rad Dads has provided the
             City with written Notice of such default, the City shall have thirty (30) days to cure such default
             following written notice from Rad Dads.

                      23.    Inspection. The City shall have the right, at reasonable times during business hours
             to inspect all parts of the Premises. The City shall not materially interfere with or disrupt the
             operation of Rad Dads business in the exercise by the City of its rights under this Section and shall,
             at all times, observe Rad Dads reasonable security requirements.

                      24.    Surrender. On the Expiration Date or earlier termination of the Term, Rad Dads
             shall surrender and deliver possession of the Premises in good order with all maintenance, repairs
             or replacements which are the obligation of Rad Dads completed, ordinary wear and tear excepted.
             Rad Dads shall remove from the Premises, at Rad Dads sole cost and expense, all of Rad Dads
             personal property. Any of Rad Dads personal property, trade fixtures, Alterations, or other
             contents not removed by Rad Dads upon the Expiration Date, or within ten (10) days after the
             earlier termination of this Agreement, shall be considered abandoned and the City may dispose of
             the same as it deems expedient, and Rad Dads waives all claims against the City for any damages
             resulting from the City’s retention and disposition of such property. The City will not store any
             of Rad Dads personal property or any other contents. Rad Dads agrees that all structures and
             improvements on the Premises and all fixtures are the property of the City, shall remain on the
             Premise, and shall be in good usable order and condition, with allowance for reasonable wear and
             tear and damage by the elements, and also excepting damage arising from acts, events and
             conditions beyond the control of Rad Dads. The City shall have the right upon such Expiration
             Date or termination to enter upon and take possession of such property.

                     25.      Reservation of Rights.

                             a.      The City reserves the right to further develop or improve the Arena as it
                     sees fits, regardless of the desires or view of Rad Dads, so long as the improvements do
                     not encroach into the existing footprint or operations of Rad Dads.

                              b.     The City reserves the right to adopt, from time to time, reasonable rules and
                     regulations for the operation of the Arena which are not inconsistent with the provisions of
                     this Agreement. Rad Dads Agents, employees, invitees, and licenses shall comply with all
                     those rules and regulations.

                     26.      Signs. Subject to any existing City obligations or additional approvals that the City
             is required to obtain as it relates to signage, Rad Dads shall have the right to place signs within the
             Premises identifying and promoting Rad Dads, provided such signs comply with the local
             ordinances and regulations. Rad Dads may provide to the City a digital sign to be displayed on the
             digital marquee located outside the Arena that faces Shoreline Drive at a frequency and at similar
             times provided to other Rad Dads of the Arena, but in no event shall any display of Rad Dads sign
             be at a lesser frequency and at times afforded any other Restaurant located in the Arena. Upon the
             expiration of the Term, Rad Dads shall remove all signage and shall restore and repair any damage
             caused by the installation or removal of such signs.

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                     27.     Buildout and Western Avenue Digital Marquee. Rad Dads may expand the
             outdoor eating venue to include an upper deck adjacent to the east side of the Arena, in close
             proximity to the Premises, and in a form substantially similar to that as set forth on the renderings
             attached as Exhibit B. Rad Dads shall submit construction plans to the City for approval, which
             the City shall review in its ordinary course of business. If approved, the cost of the buildout,
             including, but not limited to all design, construction, approvals, permits, and licenses, shall be
             borne one hundred percent (100%) by Rad Dads. Rad Dads shall obtain all necessary governmental
             approvals and comply with all applicable laws, ordinances, and regulations related to the
             construction and use of the venue. In consideration that Rad Dads will bear the cost of the buildout,
             Rad Dads shall not be charged any additional Rent for the outdoor space and the outdoor space
             will not be factored into any future rent increases.

             Rad Dads may install a digital marquee thereon in the area of the northwest intersection of Western
             Avenue and Fourth Street, subject to Rad Dads’ receipt of all necessary governmental approvals.
             Rad Dads shall comply with all applicable laws, ordinances, regulations, and existing City
             obligations related to the construction and installation of a digital marquee. A rendering of the
             digital marquee is included in the drawings attached as Exhibit B.

                     28.    Notices.     All Notices, requests, demands, waivers, consents, and other
             communications required or permitted by this Agreement (“Notice”) shall be in writing and shall
             be deemed given (a) when personally delivered to the Party to be given the Notice, (b) when sent
             by electronic mail (“e-mail”) to the Party to be given the Notice, (c) on the third (3rd) business day
             following the day such Notice is deposited in a United States mailbox with postage prepaid if sent
             via certified mail, return receipt requested, or (d) on the day following the day such Notice is
             deposited in the custody of an overnight courier service. Notice to each Party shall be deemed
             properly addressed if sent to the following applicable address for each Party (which address for
             either Party may be changed by Notice given by such Party to the other Party):

              As to the City: City Mayor                         As to Rad Dads: Rad Dads’ L.L.C.
                             City Manager                                     Attn: Matthew Gongalski
                             933 Terrace Street                               470 W. Western Avenue
                             Muskegon, MI 49440                               Muskegon, MI 49440
                                                                              mailto:

              With Copy to: Parmenter Law                        With Copy to: Smith Haughey Rice & Roegge
                            Attn:                                              Attn: Kevin Even
                            Brennen Gorman                                     900 Third Street, Suite 204
                            601 Terrace Street, Suite 200                      Muskegon, MI 49440
                            Muskegon, MI 49440                                 [email protected]
                            [email protected]

             Each Party is solely responsible to ensure that the other's e-mail address is "whitelisted" to ensure
             that messages will not be caught by a spam filter or similar electronic filtering. E-mails are deemed
             received if they have been sent to the e-mail address provided above, even if not actually received
             by the other Party because of a spam filter or a technological problem beyond the sender's control.
             A response by one Party to any e-mail sent to the e-mail address of the other Party is conclusive
             proof of the functionality of the e-mail address as required under this Agreement. Each Party is
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             solely responsible for maintaining a viable e-mail address, for regularly checking its e-mail
             account(s), and for managing all spam filters applied to the account(s).

                    29.     Waiver. Any particular waiver by the City or Rad Dads of any covenant or
             condition of this Agreement shall extend to that particular case only in the manner specified and
             shall not be construed as applying to or in any manner waiving any further or other rights
             hereunder. The receipt of Use Payment by the City, with knowledge of any breach of this
             Agreement by Rad Dads or of any default on the part of Rad Dads in any of the conditions or
             covenants of this Agreement, shall not be deemed to be a waiver of any provision of this
             Agreement.

                     30.     Holding Over. Any hold over by Rad Dads beyond the expiration of the Term
             shall give rise to a tenancy from month-to-month, cancellable on thirty (30) days written Notice
             by either Party, notwithstanding the provisions of any law or rule to the contrary. In no event shall
             the City be deemed to have consented to any such holdover, and the City may withhold its consent
             to holdover in its sole discretion; provided, however, during any such hold-over period, Rad Dads
             shall pay the City (i) 150% of the cumulative Use Payment last prevailing hereunder (prorated for
             each day Rad Dads holds over) and (ii) any other charges or costs incurred during the hold-over
             period for which Rad Dads is responsible under this Agreement (prorated for each day Rad Dads
             holds over) and (iii) any other damages incurred by the City directly resulting from the holdover,
             including, without limitation, attorney fees.

                     31.     Governing Law. The City and Rad Dads hereby agree that this Agreement shall
             be governed by and construed and enforced in accordance with the internal laws of the State of
             Michigan without giving reference to principles of conflict of laws. The state courts of the State
             of Michigan shall have jurisdiction to hear and determine any dispute among the Parties pertaining
             directly or indirectly to this Agreement or any matter arising therefrom, and Rad Dads expressly
             consents and submits in advance to such jurisdiction in any action or proceeding commenced in
             such courts by either Party hereto. The Parties agree that for purposes of any dispute in connection
             with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and
             subject matter jurisdiction and venue.

                     32.      Miscellaneous.

                             a.     The headings preceding each section of this Agreement are for convenience
                     of reference only and shall not affect the construction or meaning of the provisions hereof.

                             b.      If any part of this Agreement is found to be invalid or unenforceable, it shall
                     not affect any remaining portion of this Agreement, which shall continue to be in full force
                     and effect and be severable from any invalid provision.

                            c.       This Agreement, including any exhibits hereto, constitutes the entire
                     agreement between the Parties and shall supersede any other agreements, written or oral,
                     dated prior to the execution of this Agreement. No provision of this Agreement may be
                     waived, changed, cancelled, modified or discharged orally, but only by an agreement in
                     writing and signed by the Party against whom enforcement of any waiver, change,

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                     cancellation, modification or discharge is sought. This Agreement represents the entire
                     agreement between the Parties, and fully and completely sets forth all terms and conditions
                     of the transactions embodied in this Agreement.

                              d.      Except as otherwise provided above, neither Party shall be liable to the other
                     Party for any loss, injury, delay, damage, or other casualties suffered or incurred by a Party
                     due to any force majeure event beyond the reasonable control of that Party except for
                     Losses, damages, and costs arising from a Party’s failure to satisfy its monetary obligations
                     under this Agreement. Notwithstanding the foregoing, nothing in this Section and no force
                     majeure event shall be deemed to delay or excuse or otherwise relieve Rad Dads from any
                     liability for the timely payment of any Rent or other sum owed by Rad Dads under the
                     terms of this Agreement unless Rad Dads s unable to perform its obligations due to a
                     pandemic such as the COVID 19 pandemic (or similar pandemic) which led to government
                     shutdown of public establishments.

                              e.     This Agreement may be executed in counterparts, each of which is an
                     original and all of which together constitute one and the same instrument.

                            f.     This Agreement shall be binding upon, and inure to the benefit of and be
                     enforceable by, the Parties and their respective legal Representatives, permitted successors
                     and assigns.

                             g.        Rad Dads hereby represents and warrants that neither Rad Dads, nor any
                     persons or entities holding any legal or beneficial interest whatsoever in Rad Dads, are (i)
                     the target of any sanctions program that is established by Executive Order of the President
                     or published by the Office of Foreign Assets Control, U.S. Department of the Treasury
                     (“OFAC”); (ii) designated by the President of OFAC pursuant to the Trading with the
                     Enemy Act, 50 U.S.C. App. § 5, the International Emergency Economic Powers Act, 50
                     U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224
                     (September 23, 2001) or any Executive Order of the President issued pursuant to such
                     statutes; or (iii) named in the following list that is published by OFAC: “List of Specially
                     Designated Nationals and Blocked Persons.” If the foregoing representation is untrue at
                     any time during the Term, a default will be deemed to have occurred, without the necessity
                     of Notice to Rad Dads.

                              h.   This Agreement shall be governed by the internal laws of the State of
                     Michigan, without regard to principles of conflicts of law.

             IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day
             and year first above written.



                                       [SIGNATURE PAGE ON FOLLOWING PAGE]



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                                                       [SIGNATURE PAGE]

              The City – City of Muskegon                        Rad Dads – Rad Dads’ L.L.C.


              By:    ___________________________                 By: _______________________________
              Name: Ann Meisch                                   Name: Matthew Gongalski
              Title: Clerk                                       Title: Authorized Member


              By:    ___________________________
              Name: Ken Johnson
              Title: Mayor




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                                                             Exhibit B




             SHRR\8090337.v1
             SHRR\8090337.v1


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