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CITY OF MUSKEGON
LEGISLATIVE POLICY COMMITTEE
MEETING
May 27, 2026 @ 5:30 PM
CITY OF MUSKEGON, ROOM 204
933 TERRACE STREET, MUSKEGON, MI 49440
☐ CALL TO ORDER:
☐ ROLL CALL:
☐ APPROVAL OF MINUTES:
A. Approve the minutes of February 25, 2026. City Clerk
☐ OLD BUSINESS:
☐ NEW BUSINESS:
A. Modular Vehicle Barrier System Fees DPW- Parks and Recreation
B. Beach Shuttle Promotion Manager's Office
C. Opioid Settlement Funding Agreement with the County Manager's Office
D. State and Federal Legislative Update Manager's Office
E. USS Silversides Exploring a Move Manager's Office
F. Muskegon Social Equity Program Planning
☐ ANY OTHER BUSINESS:
☐ PUBLIC COMMENT:
☐ 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
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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 Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: Approve the minutes of February 25, 2026.
Submitted by: Department: City Clerk
Brief Summary:
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
Fund(s) or Account(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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CITY OF MUSKEGON
LEGISLATIVE POLICY COMMITTEE
MEETING
February 25, 2026 @ 5:30 PM
CITY OF MUSKEGON, ROOM 204
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Destinee Keener, Commissioners
Katrina Kochin, Willie German, Jr., Kiley Jackson, Jay Kilgo, and Rebecca St.
Clair. City Manager Jonathan Seyferth, and City Clerk Ann Marie Meisch
APPROVAL OF MINUTES
A. Approval of Minutes Clerk’s Office
Approve the minutes of the December 1, 2026 Legislative Policy Committee
Meeting.
Motion by Commissioner Kilgo, second by Commissioner St. Clair, to Approve
the minutes..
ROLL VOTE: Ayes: Jackson, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
A. City Commission Handbook Manager's Office
Staff is requesting guidance on the new commission handbook and the
associated policies.
Several suggested changes are in the final document for the City Commission
to be considered at a future Commission Meeting. Some changes include
keeping all videos of meetings indefinitely, zooming into non-televised meetings
upon request, and the Mayor excusing Commissioners for cause.
A. MGT Final Workplace Culture Report Manager's Office
Beginning in July of 2025, the MKG Core Team worked with MGT to assess the
impact of the city's policies, programs, and practices on city staff. Focus
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groups were conducted, and the final results of the work with MGT were
included in a report that covers the all-employee survey, policy audit, and
impacts on staff. A summary of the report was presented by Donald Nunez, the
MKG Core Team Chair.
Commissioners questioned why there wasn't more participation. Staff indicated
that they were anonymous, so there is not a way to ask those individuals.
MGT offered three key recommendations to advance the work already carried
out by the city. They are:
1. Strengthen transparency and communication.
2. Foster cross-departmental collaboration.
3. Support career pathways.
B. Clarifying Charter Amendment Language Manager's Office
In November 2025, 58% of voters supported instituting term limits for the
Muskegon City Commission.
This added language to the City Charter, which states in part, " A person may
not serve on the City Commission for terms or partial terms that combined total
more than 12 years." This language conflicts with the City Charter, as it does not
prohibit someone from running, only from serving. Additionally, this creates a
conflict with State Law, specifically the Home Rule City Act (MCL 117.5(1)(d))
which states "...the term of a public official shall not be shortened or extended
beyond the period for which the office is elected or appointed, unless he or
she resigns or is removed for cause, if the office is held for a fixed term."
Please see the attached letters from the Governor's and Attorney General's
offices, which provide additional context on this conflict.
Would the City Commission like to put a clarifying amendment on the ballot
that would prohibit someone from running if they've served more than 12
years? City Commissioners can put Charter Amendments on the ballot with a
three-fifths majority vote (5 of 7 members). A petition process would not be
involved.
This is for discussion only and staff will act accordingly following this discussion.
The Commissioners decided this would be a topic for a later discussion.
Commissioner Kilgo indicated he would like to make a change that a citizen
must live in the city for one year, not in the ward.
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C. State & Federal Legislative Update Manager's Office
Pete Wills shared updates on State and Federal issues and their impact on the
City of Muskegon.
D. RxKids Community Champions & Financial Support Manager's Office
The City of Muskegon is being asked to contribute $50,000 per year for three
years (total $150,000) to support the expansion of Rx Kids, a statewide maternal
and infant cash support program.
The Muskegon/Muskegon Heights Rx Kids program will provide direct,
unconditional cash payments to pregnant residents and infants during the first
six (6) months of life. Families receive a $1,500 prenatal payment and $500 per
month during infancy, helping stabilize households during a critical period of
development.
The Community Foundation for Muskegon County has already committed
$150,000 over three years, equal to the $150,000 we're being asked to consider.
Additional local partners are expected to contribute, bringing total annual
local support to approximately $288,000 (the required match by the state of
Michigan). The three-year local match is about $866,000 dollars.
This local investment will leverage more than $2.3 million in state funding for
Muskegon County each year, totaling more than $6.9 million over the three-
year life of the program.
Staff is recommending that we take the $150,000 from a portion of the City's
Committed Fund Balance that has been set aside for the Social Equity Program
but has not been spent. Currently, $382,000 sits in this committed account.
Using $150,000 over three years would still leave more than $230,000 for Social
Equity Programming.
It is important to note that committed funds do not count toward the City's
unassigned fund balance. So this action would not impact the uncommitted
fund balance.
In addition to financially contributing to the program, the City of Muskegon will
also serve as the Community Champion. Those responsibilities include:
Leading outreach and community engagement to ensure families know about
and enroll in the program.
• Helping raise awareness about Rx Kids and elevate the stories of
participating families.
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• Hosting community events to build connections and visibility.
• Working with a network of local stakeholders to maintain program
integrity and long-term support for families.
• Verifying residency of participants (participants must live in the city of
Muskegon or Muskegon Heights).
Our Communications team has reviewed these engagement requirements and
are confident they can deliver the needed requirements.
Residents of Muskegon and Muskegon Heights will be eligible to participate.
Other communities participating in this program across Michigan include:
City of Flint (where the program originated)
City of Kalamazoo
Eastern Upper Peninsula Counties
City of Pontiac
Clare County
Royal Oak Township
City of Hazel Park
City of Dearborn
City of Hamtramck
City of Highland Park
City of Inkster
City of Melvindale
City of River Rouge
City of Yipsilanti
Gladwin County
Roscommon County
City of Saginaw
Buena Vista Township
Bridgeport Township
City of Benton Harbor
City of Niles
City of Buchanan
Benton Charter Township
Lake County
City of Detroit
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Motion by Commissioner St. Clair, second by Commissioner Vice Mayor
Keener, to I move to approve funding the RxKids program out of the City's
Committee Fund for the Social Equity Program in the amount of $50,000 per
year for the next three years, totaling $150,000.
ROLL VOTE: Ayes: Jackson, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
E. Citizen's Request to Speak Form City Clerk
From time-to-time we receive a request from the media or others for contact
information of someone who spoke at a meeting. We normally reach out to the
individual in these cases and ask permission to share this information. By placing
this statement with a checkbox on the form, would eliminate this step.
The Commission indicated they were fine with this change.
ANY OTHER BUSINESS
PUBLIC COMMENT
ADJOURNMENT
Motion by Commissioner Kilgo, seconded by Commissioner St. Clair to adjourn
at 8:16 pm.
MOTION PASSES
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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Agenda Item Review Form
Muskegon Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: Modular Vehicle Barrier System Fees
Submitted by: Jacqui Erny, Admin Department: DPW- Parks and Recreation
Brief Summary:
Staff is seeking input on fees associated with road closures utilizing the new modular vehicle barrier
system.
Detailed Summary & Background:
The cost of closing the road has increased significantly due to the use of the new modular vehicle
barrier system (MVBS). Staff gathered historical information on road closures, the costs associated
with closures, and practices regarding fee waivers to help provide context as to why the fees have
changed. The presentation will include a recommendation from staff regarding a potential way to
lower costs for events utilizing the MVBS.
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:
N/A Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
101-446 Yes No N/A X
Recommended Motion:
Discussion only.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X Special Event Policy
Head
Information
Technology
Other Division Heads X
Communication
Legal Review
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Agenda Item Review Form
Muskegon Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: Beach Shuttle Promotion
Submitted by: LeighAnn Mikesell, Deputy City Department: Manager's Office
Manager
Brief Summary:
Staff is seeking input on the commissioners' willingness to participate in beach shuttle promotions.
Detailed Summary & Background:
Commissioners tend to have a good presence and following on social media, and staff have ideas
where that social media presence could highlight the beach shuttle service being offered.
Commissioners are encouraged to ride the shuttle over the summer and post about your
experience. Our goal is to increase awareness, drive first-time ridership, and encourage repeat use
of the free service. A one page marketing strategy is included in the packet, and staff directs the
commissioners' attention to the opening weekend section.
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life - Improved transportation connections
throughout the community
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:
Discussion only
Approvals: Name the Policy/Ordinance Followed:
Immediate Division N/A
Head
Information
Technology
Other Division Heads
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Communication X
Legal Review
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2026 Beach Shuttle Marketing Plan – One Page Summary
The City of Muskegon is launching a coordinated marketing and engagement plan to promote the 2026 Beach Shuttle during
opening weekend and throughout the summer season. The goal is to increase awareness, drive first-time ridership, and
encourage repeat use of the free service.
Opening Weekend Activation
• Influencer and Community Leader Rides: Local leaders and influencers ride the shuttle throughout the season to
generate awareness and organic social media engagement.
• Ride With the Mayor: Mayor hosting office hours on the beach shuttle as an opportunity to engagement and connect
with residents while experiencing the service.
Marketing and Outreach Strategy
The campaign uses a multi-channel approach to drive awareness and ridership:
• Paid social media advertising targeting local and regional audiences
• Radio advertising on 103.7 with Commissioner Kiley Jackson
• Partnerships with hotels, short-term rentals, and the Chamber of Commerce
• Printed materials distributed to visitor centers and community locations
• On-site beach signage and digital billboards
Objective
The primary objective is to normalize shuttle use as the preferred way to access Lake Michigan beaches, reduce parking
congestion, and strengthen connections between residents, visitors, and local businesses along the route.
Budget
Total Marketing Budget: $10,000
The 2026 Beach Shuttle marketing plan uses a mix of paid advertising, printed materials, on-site signage, and digital
promotion to drive awareness, first-time ridership, and repeat use of the free shuttle service.
Planned Major Expenses
• Local Radio Advertising: $3,000
• Printed Brochures (Hotels, STRs, Visitor Centers): $2,000
• Digital Targeted Ads: $1,500
• On-Bus Advertising: $1,200
• Beach Signage (On-site kiosks and beach access points): $1,500
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Agenda Item Review Form
Muskegon Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: Opioid Settlement Funding Agreement with
the County
Submitted by: Peter Wills, Director of Department: Manager's Office
Governmental Relations
Brief Summary:
Staff seeking input from the Commission about changing how we use our Opioid Settlement Funds.
Currently, we have an agreement with the county to distribute the funds as grants to third parties. We
would like to explore using the funds for recovery housing opportunities in the community - including
related to helping the unhoused.
Detailed Summary & Background:
Since November 26, 2024, the city has allocated a portion of our federal opioid settlement funding to
the county’s existing opioid settlement grant program. In 2025, the city approved two project
applications. The first was to Fresh Coast Alliance in the amount $55,000, and the second was to Life
Align in the amount of $32,283 for a total of $87,283. Both organizations were able to utilize this
funding for projects that "supported the development, implementation, enhancement, or expansion
of opioid prevention, harm reduction, treatment, and recovery programs and services" for the benefit
of city residents.
The city is expected to receive $605,256.92 through 2040 from multiple national class action
settlements. To-date, the city has received $210,843.26 and has a balance of $123,560.26.
The city continues to support these and other organizations that are providing critical services
throughout our community. However, the city is researching recovery housing opportunities that
could more fully maximize these settlement funds in the long term. Recovery housing services are an
eligible use of these settlement funds.
Therefore, staff is seeking feedback from the commission about the possibility of ending the Opioid
Settlement Funds Agreement with the county and redirecting the city's settlement allocation to
explore recovery housing opportunities in the community.
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:
Opportunity for greater uses of these settlement funds in the long term.
Amount Requested: Budgeted Item:
NA
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Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A X
Recommended Motion:
staff will move forward as directed by the commission.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X
Head
Information
Technology
Other Division Heads
Communication
Legal Review X
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Agenda Item Review Form
Muskegon Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: State and Federal Legislative Update
Submitted by: Peter Wills, Director of Department: Manager's Office
Governmental Relations
Brief Summary:
Staff to provide an update on relevant state and federal issues impacting the City of Muskegon.
Detailed Summary & Background:
Staff to provide an update on relevant state and federal issues impacting the City of Muskegon.
Goal/Action Item:
2027 Goal 3: Community Connection
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
NA Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A X
Recommended Motion:
Discussion only
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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Legislative Report, May 2026
Bill # Detail Status
HB 4081 Amends the Land Division Act to authorize counties/municipalities to increase number of parcels resulting from Senate floor
division for the first 10 acres of a parent parcel from four to ten.
HB 4170 Income Tax cut to 4.05% Senate comm on Finance
HB 4260-61 Public Safety Trust Fund, distribution of funds Senate Approps since 4/26/25
HB 4311-12 Revenue Sharing Trust Fund, creation of fund House Gov Ops since 4/15/25
HB 4410 Modifies definition of abandoned property to allow a local unit to secure the property to prevent trespass. House Gov Ops since 5/1/25
SB 19-22 Tenant Empowerment Package for renters Senate floor since 6/17/25
HB 4503/04 Modifies state historic preservation tax credit program House Comm on Economic
Competitiveness since 5/21/25
HB 4539/40 Modifies housing and community development fund; same as SB 239 from last session House Comm on Economic
Competitiveness since 6/4/25
HB 5073 Raises the cap of available funds in the Transformational Brownfield Program – income and property taxes may House Comm on Economic
be captured up to 20-30 years after the project is completed. Current cap is $1.8B on the state taxes that can be Competitiveness since 9/29/25
captured. Since 2017 and 10 funded projects there is $30M available. The bill would increase post-construction
tax capture limit to $2.4B and extend it to 12/31/27.
HB 5138-40 Creates a lodging accommodations tax that includes STRs and allocates a portion of revenue back to local units. House Comm on Economic
Requires online lodging platforms to collect and remit state use tax on accommodation at time of payment. Competitiveness since
Authorizes local units to levy up to a 3% accommodations tax on all lodging types including STRs. 10/28/25
HB 5304 requires that dredged materials be used for beach nourishment House Comm on Natural
Resources and Tourism
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HB 5305-06 Extends the Commercial Redevelopment Act to 12/31/35 – the date after which a new commercial facilities House floor 12/9/25
exemption certificate may be issued. Two local projects are impacted – 356 W. Western Ave (Century Club Bldg)
and 1937 Lakeshore Dr. (Harbor Theatre); staff have also had discussions with potential owners of Russell Block
building. Sunsets need to be extended. PA 255
HB 5492-93 Flock camera, license plate readers; operator of the reader system would have to preserve plate data for at least 2/3/26 House Judiciary
14 days after a preservation request is made.
HB 5529-32, Housing Readiness package – preempt local control 3/3/26 House Gov Operations
5581-5585 HB 5529 – Amends land division act for parcel and lot size Committee
HB 5530 – Amends MZEA minimum residential lot size
HB 5531 – Amends MZEA site plan approval and limits studies
HB 5532 – Amends MZEA protest petition
HB 5660-61 MML – HOME Program legislation - partnership between local gov and the state to improve access to housing 3/4/26 House Gov Operations
that is attainable for residents. It supports investment to accelerate housing construction and rehabilitation, Comm
while also promoting updates to local zoning regulations.
HB 5865 18-bill MI HOPE Zone Act – Helping Opportunity Proper Everywhere https://housedems.com/scott-unveils- House Gov Operations,
legislation-to-foster-hope-revitalize-communities/ Designates economically distressed communities as special 4/22/26
zones where tax incentives and reinvested local tax revenue can attract businesses, support job training and
fund neighborhood development.
HB 5872-80 House GOP property tax plan 4/23/26 House Gov Operations
SB 248-256 Creates a low-income water affordability program within DHHS to ensure eligible customers do not pay more Senate floor since 11/5/25
than 30% of their household income on a water bill.
SB 319 Reintroduction of minimum staffing legislation; making minimum staffing levels for PA 312 employees (police House Gov Operations since
and fire) a mandatory topic of collective bargaining. 6/26/25
SB 278 Modifies the housing and community development fund program. MSHDA program that makes financing Senate Housing & Human
available to meet the housing needs of low-income households and to finance projects in a downtown area or Services since 5/1/25
adjacent neighborhood in the State. The bill would make financing available to middle-income households (not
more than 120% AMI) and deleting the requirement that financed projects be in a downtown area or adjacent
neighborhood.
SB 484/485 Provides for the exemption of certain tax delinquent property sold or otherwise conveyed by a foreclosing Senate Housing & Human
governmental unit and Provides for the application of tax reverted property specific tax to certain tax Services since 7/17/25
delinquent property sold or otherwise conveyed by a foreclosing governmental unit.
SB 559-561 Create Revenue Sharing Trust Fund 4/30/26 House floor
SB 691-698 Election bills – moves primary election date to May; adds a Feb primary election date; eliminates Aug primary 3/18/26 House Comm on
election date Election Integrity
SB 721-722 Extends the Commercial Rehabilitation Act to 12/31/35 – the date after which a new commercial rehab House Finance, 12/10/26
exemption certificate may be issued. Two local projects are impacted – 356 W. Western Ave (Century Club Bldg)
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and 1937 Lakeshore Dr. (Harbor Theatre); staff have also had discussions with potential owners of Russell Block
building. Sunsets need to be extended; PA 210
SB 723 Makes programs changes to the Transformational Brownfield Program – projects with a total development cost House Comm on Economic
of $100M or more to provide a fiscal analysis of the anticipated fiscal benefits to the State. For projects Competitiveness
proposed to use more than 50% of income tax capture revenue, that any affordable housing agreements include
a requirement that at least 20% of the housing units be available to income qualified households. Projects
approved after the bill’s effective date, the duration of a construction tax capture period would be limited to
10yrs after ground is broken. The maximum tax capture would be $300M for any project approved after the
effective date of the bill. The total tax capture of the program would increase from $1.6B to $3.5B.
SB 792 Extends sunset on OPRA certificate to 12/31/36; obsolete property rehabilitation act Senate Regulator Affairs, 2/19
SB 793 PA 198 abatements Senate Regulator Affairs, 2/19
Not yet New Community Redevelopment Tax Credit to reform and restart the former Brownfield Tax Credit in the form
introduced of the CRTC – to support place-based investment and leverage private capital. The credit would be used to
redevelop vacant, blighted, contaminated, and functionally obsolete buildings.
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LOCAL
ARPA Community Grants, as of 12/31/25
• 25 - approved grants ($1.6M)
• 21 - projects paid the entirety of their grant. In-progress projects include Every Woman’s Place, MI Crossroads
Council-Boy Scouts, Sheldon Park NA, and Mediation & Restorative Services.
• As of 3/31/26 - $1,569,000 of the $1.6M has been spent.
Climate Action
• Link to updated CAP webpage, including a link to the recent Energy Performance Contract
presentation to the city commission.
Muskegon Farmers Market – MDARD grant
• The commission recently approved receipt of a state grant in the amount of $481,267 for the
renovation and expansion of the Farmers Market. Grant funding will be used to expand Kitchen 242
and the Market Barn to strengthen our local food supply and provide year-round food access to our
facility.
• Staff is working with a firm to perform Professional Services to prepare bid documents.
• Staff is also actively working with community partners to establish a process of identifying external
funding for the project.
STATE
Michigan Attorney General Dana Nessel Muskegon visit
• On April 28th, Michigan Attorney General met with municipal officials from around Muskegon
County. Topics included dam safety within the county, federal PFAS settlement funding, consumer
protection and immigration issues. The attendees appreciated the opportunity to engage with the
AG and where her office may be of assistance on issues impacting our community.
Property Tax Reform Package Receives Committee Hearing in the House
• Earlier this year, property tax reform legislation was introduced which includes a nine-bill package
along with a proposed constitutional amendment.
• The bills would eliminate the uncapping (pop-up tax) for all property upon sale, the elimination of
the State Education Tax, the elimination of the state real estate transfer tax, the elimination of all
personal property taxes, and a reduction in residential utility rates.
• The constitutional amendment would eliminate the uncapping (pop-up tax) for all property upon
sale.
• The final piece of the package would create a new sales tax on services. This bill would act as the
revenue replacement mechanism for schools and local government due to the loss of property tax
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revenue. It proposes to hold schools harmless first, then provide revenue to local units of
government. If there is not enough revenue to hold local governments harmless, they would get a
prorated amount based on the funds available.
The list of bills with links and short descriptions.
• HB 5872 Elimination of the uncapping (pop-up tax) upon sale of a property.
• HB 5873 Elimination of the State Education Tax
• HB 5874 Repeal of the state real estate transfer tax.
• HB 5875 Implementation legislation to repeal the state real estate transfer tax.
• HB 5876 Implementation legislation to repeal the state real estate transfer tax.
• HB 5877 Implementation legislation to repeal the state real estate transfer tax.
• HB 5878 Elimination of all Personal Property Tax.
• HB 5879 Utility rate rollback.
• HB 5880 Sales tax on services.
• HJR T Constitutional Amendment to eliminate the uncapping (pop-up tax) of property upon sale
The reduction in total property tax revenue could be around $4.9B. The amount of revenue generated
by a new sales tax on services could be $4.7B. The proposal would result in $200M less for local units of
government. The elimination of revenue generated by the pop-up and the effects could also have a
compounding impact on services.
Senate Votes Unanimously to Establish Revenue Sharing Trust Fund
• In April, the Senate voted to establish a Revenue Sharing Trust Fund and was included in the state
budget proposal passed by the Senate ensuring in will be a point of negotiation going forward.
Housing Readiness package
• The Housing Readiness package (HB 5529-5532 and HB 5581-5585) would preempt local decision
making on key zoning issues, including duplexes, accessory dwelling units (ADUs), minimum
setbacks, lot sizes, and dwelling unit sizes.
o Maximum Lot Sizes in metro areas (2000 sq. ft.)
o Dwelling Size (caps min dwelling size requirements at 600 sq. ft. in metro statistical areas)
o Setback Requirements (15 feet from front; 5 feet from sides and rear)
o Modernize Protest Petition Process (expand petition area to 300 feet; new 60% signature
threshold)
o Parking Rules (cap mandatory parking req’s at no more than one space per dwelling unit)
o Study Requirements (create standards for local gov requests; 60 day timeline for decisions)
o ADU’s (Allow on parcels with single family homes; cap setback at 5 feet, no parking req’s)
o Duplex by Right (Permits duplexes by right in single family residential zones within or
adjacent to metro statistical areas)
Community Redevelopment Tax Credit
• Michigan Community Capital (MCC) is pursuing the creation of a Community Redevelopment Tax
Credit (CRTC) to support place-based investment and leverage private capital. The proposal would
reform and restart the former Brownfield Tax Credit in the form of the CRTC. The credit would be
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used to redevelop vacant, blighted, contaminated, and functionally obsolete buildings in
communities across Michigan. MCC is a 501(c)(3) nonprofit that exists to promote community and
economic development.
Public Safety Revenue Sharing
• In May, the State began sharing information related to the Public Safety Revenue Sharing payments
and when communities could expect payments.
• For FY26, the legislature authorized the distribution of $42,562,500 ($35,062,500 ongoing funding +
$7,500,000 one-time funding) in Public Safety Revenue Sharing payments to cities, villages and
townships ( 2025 Public Act 22, Section 959(1)(b) and Section 992(2) ). Payments are based on each
local unit’s share of violent crime counts as certified by the Michigan State Police for calendar years
2022, 2023, and 2024.
• The city is expected to receive $292,768 per year. Funds can be used for operational and capital
expenditures that serve the purposes of public safety. A list of Public Safety Revenue Sharing
payments by city, village, and townships - click here. Additional information can be found
on Treasury's website.
• Local units must use these funds for operational or capital expenses that serve the purposes of
public safety such as recruitment or retention; training; equipment; programming; capital
improvements to public safety buildings.
• Additional information can be found on Public Safety Revenue Sharing Webpage
FEDERAL
Michigan’s U.S. Senator Elissa Slotkin Muskegon visit
• On May 4th, U.S. Senator Elissa Slotkin met with municipal officials from around Muskegon County.
Topics included federal funding for local projects, social services programming, and the status of the
federal budget. The attendees appreciated the opportunity to engage with the Senator and how her
office may be of assistance on issues impacting our community.
U.S. Department of Housing and Urban Development FY27 Budget
• The President’s FY27 budget proposal would end the Community Development Block Grant program
(CDBG). The U.S. House of Representative Appropriations subcommittee on Transportation, Housing
and Urban Development includes this proposal.
• On May 14th, Mayor Johnson and City Manager Jonathan Seyferth sent a letter to our federal
legislative delegation encouraging their support to provide full funding for FY27 HUD CDBG, HOME,
and Continuum of Care programming. FY27 CDBG HOME City of Muskegon_signed.pdf
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• Elimination of these essential federal programs will have an immediate and devastating effect as
these initiatives deliver funding for affordable housing construction, neighborhood revitalization,
small business support, and life-saving shelter and services for our most vulnerable neighbors.
Congressional Directed Spending project requests
Earlier this year, staff submitted requests for federal funding for two local projects; Central Fire roof
replacement and Sherman Blvd Sanitary Sewer Upsizing
• Sherman Blvd Sanitary Sewer Upsizing
o Staff submitted a request for $1.6M to modernize and upsize the Sherman Blvd gravity
sanitary system to generate additional capacity to serve the City's industrial park and Trinity
Health Muskegon Hospital campus, and offer more flexibility to reorient flow to other nearby
sanitary lines under US-31.
o Unfortunately, this project was not recommended by our federal legislative delegation to
advance in this appropriations process.
• Central Fire Roof Replacement
o Staff also submitted a request for $210,000 for the replacement of the roof at the Muskegon
Central Fire Station / Muskegon Central Dispatch 9-1-1 facility.
o Sen. Gary Peters recommended the project to be advanced for further consideration by the
U.S. Senate appropriations subcommittee on Transportation and HUD.
U.S. Department of Energy – Energy Efficiency Community Block Grant
• In early May, the city finally received a reimbursement payment from the USDOE in the amount of
$76,45 for the 2024 acquisition of two EV side-by-side utility vehicles.
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Agenda Item Review Form
Muskegon Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: USS Silversides Exploring a Move
Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office
Brief Summary:
Earlier this year, the USS Silversides Board voted to explore the possibility of moving the ship and
museum to Downtown Muskegon. The board has requested the City Commission take an affirmative
position in support of exploring this move.
Detailed Summary & Background:
For several years, the USS Silversides Board has been discussing options for the ship's and museum's
future. Earlier in 2026, the museum's board voted to explore moving the USS Silversides to Downtown
Muskegon, specifically to be co-located with the USS LST 393. No final decision has been made, and
only conversations are occurring.
For decades, the ship has been located on the channel wall near Pere Marquette. The museum itself
sits on City property, and there is an agreement between the City and the USS Silversides Museum for
use of the property.
Because of this agreement, the USS Silversides Board is asking the City Commission to also signal its
support for exploring a move. It is simple to note that the City Commission does not object to the
museum moving. Staff would recommend a stance of being supportive of whatever decision the USS
Silversides Board makes, and that we have no objection to the board looking at and/or ultimately
moving to another location in the City.
The reason this is being asked for is that the Board is trying to head off any narrative that the City isn't
supportive of this conversation.
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:
n/a Yes No N/A X
Fund(s) or Account(s): Budget Amendment Needed:
n/a Yes No N/A X
Recommended Motion:
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Motion to support the USS Silverside's Board of Directors in its exploration of moving the ship to
another location within the City of Muskegon.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Page 50 of 54
Agenda Item Review Form
Muskegon Legislative Policy Committee
Commission Meeting Date: May 27, 2026 Title: Muskegon Social Equity Program
Submitted by: Mike Franzak, Planning Director Department: Planning
Brief Summary:
The City has received $541,155 in Marihuana Excise Tax money for this year. This is down from the
$700,753 the City received last year. For the past several years, the Commission has set aside 25% of
this money to go towards the Muskegon Social Equity Program. If the same 25% is set aside this year,
that would equal $135,288.75.
Staff is proposing to fund three programs through the Muskegon Social Equity Program this year.
These include:
1. Expungement Clinics provided by G.U.N.S. ($45,000)
2. Counseling services through Mediation & Restorative Services ($55,000)
3. A housing intervention program used in conjunction with money from the opiod settlement
($35,288.75)
Detailed Summary & Background:
The City has received $541,155 in Marihuana Excise Tax money for this year. This is down from the
$700,753 the City received last year. For the past several years, the Commission has set aside 25% of
this money to go towards the Muskegon Social Equity Program. If the same 25% is set aside this year,
that would equal $135,288.75.
Staff is proposing to fund three programs through the Muskegon Social Equity Program this year.
These include:
1. Expungement Clinics provided by G.U.N.S. ($45,000)
2. Counseling services through Mediation & Restorative Services ($55,000)
3. A housing intervention program used in conjunction with money from the opiod settlement
($35,288.75)
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:
$135,288.75 Yes No X N/A
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Fund(s) or Account(s): Budget Amendment Needed:
Muskegon Social Equity Program Yes No X N/A
Recommended Motion:
I move to approve the request to fund the Muskegon Social Equity Program with $135,288,75 for the
programs presented.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X Muskegon Social Equity Program
Head
Information
Technology
Other Division Heads
Communication
Legal Review
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