News and announcements concerning City of Muskegon financial issues.

Audited Financial Report for 6/30/14 Fiscal Year Now Available

The City of Muskegon Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2014 is now available online.

The CAFR summarizes the city’s financial activity for the year and includes the unmodified opinion of the City’s independent auditor – Brickley DeLong.

Highlights from the FY14 CAFR include:

  • The assets of the City of Muskegon exceeded its liabilities by $128,908,638 as of June 30, 2014. Of the City’s total net position, $21,188,945 (16.4%) was unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors.
  • The City’s governmental funds reported combined ending fund balance of $12,987,232, a decrease of $668,826 (4.9%) from the prior year.
  • The City’s General Fund reported a total fund balance of $7,496,097, an increase of $142,539 from the prior year balance of $7,353,558. The favorable increase is the result of slightly higher than anticipated income taxes, licenses and permit fees revenues and tight budget controls.
  • For the year ended June 30, 2014, General Fund revenues were $502,874 higher than the final amended budget estimate. This variance is primarily due to higher than expected local income tax and licenses and permits revenues.
  • General Fund expenditures were $562,197 lower than projected in the final amended budget. Most city departments spent less than expected due to a combination of 1) tight budget controls, 2) conservative budget projections and, 3) cost savings realized from budget cuts made in the prior year.

You can view the FY14 CAFR by clicking here. You can view CAFR reports from prior years here.

Banking Services RFP

October 2, 2014

To All Interested Parties:

The City of Muskegon will be conducting interviews for the purpose of selecting a primary depository bank for 2015-2021 and invites your bank to participate. The City uses a wide range of banking services and is committed to implementing new cost-effective bank technologies. It is the City’s desire to select a bank that will provide the best overall value on a long-term relationship basis rather than simply choosing the “low bidder”. Accordingly, in addition to pricing, other factors will be considered including (but not limited to): availability of value-added service enhancements, availability and commitment to implementing new technologies, and financial strength. The process for selecting the City’s depository bank will consist of two components: interviews and pricing proposals. The interview process is by far the more important component. It is fully expected that (subject to reasonable and competitive pricing) the bank coming out on top after the interview process will be the bank selected by the City.

Banking Services Request for Proposal (pdf)

EVIP Consolidation Plan Available

Public Act 63 of 2011, introduced the Economic Vitality Incentive Program (EVIP). The EVIP program sets certain requirements that cities must meet in order to receive revenue sharing monies from the state. An eligible city, village, or township will receive 1/3 of the maximum amount for which they are eligible for each of the three categories they fulfill the specific requirements for. The three categories are Accountability and Transparency, Consolidation of Services, and Employee Compensation.

Consolidation of Services
At this time, the City is publicizing its 2014 Consolidation of Services Plan. According to EVIP requirements, the plan shall include an update on the status of the new proposals that were in the previous year’s consolidation plan, including whether or not the previously proposed plan has been fully implemented, a listing of the barriers experienced in implementing the proposal, and a timeline of the steps to accomplish the proposed plan. In addition, the plan shall include 1 or more new proposals to increase its existing level of cooperation, collaboration, and consolidation either within the jurisdiction or with other jurisdictions, or a detailed explanation of why increasing its existing level of cooperation, collaboration, and consolidation is not feasible.

For the 2014 EVIP Consolidation of Services Plan the City focuses on the following new consolidation priorities:

  1. Fire Equipment Maintenance
  2. Consolidate Public Works Services
  3. Unification of Water Treatment Facilities
  4. HOME Program Consortium

Each of these areas is discussed more fully in the attached plan which can be viewed by clicking here.

If you have comments or questions about the 2014 EVIP Consolidation of Services Plan, you can leave them below or email them to finance@shorelinecity.com.

Audited Financial Report for 6/30/13 Fiscal Year Now Available

The City of Muskegon Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2013 is now available online.

The CAFR summarizes the city’s financial activity for the year and includes the unqualified opinion of the City’s independent auditor – Brickley DeLong.

Highlights from the FY13 CAFR include:

  • The assets of the City of Muskegon exceeded its liabilities by $130,838,669 as of June 30, 2013. Of the City’s total net position, $21,791,371 (16.7%) was unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors.
  • The City’s governmental funds reported combined ending fund balance of $13,656,058, an increase of $503,648 (3.8%) from the prior year.
  • The City’s General Fund reported a total fund balance of $7,353,558, an increase of $1,119,161 from the restated prior year balance of $6,234,397. The favorable increase is the result of sharply reduced costs due to position eliminations, tight budget controls and lower required contributions to fund legacy costs.
  • For the year ended June 30, General Fund revenues 2013 were $201,735 lower than the final amended budget estimate. This variance is due to lower than expected local income tax and interest revenues.
  • General Fund expenditures were $590,784 lower than projected in the final amended budget. Most city departments spent less than expected due to a combination of 1) tight budget controls, 2) conservative budget projections and, 3) cost savings realized from budget cuts made in the prior year.

You can view the FY13 CAFR by clicking here. You can view CAFR reports from prior years here.

2013 Citizen’s Guide to City Finances Available

Capture

Click image to view the City’s 2013 Citizen’s Guide to Local Finances

The Michigan Economic Vitality Incentive Program (EVIP) sets specific requirements that local governments must meet to qualify to receive state revenue sharing funds. One of the key requirements of EVIP is that cities make readily available to the public by October 1st “a citizen’s guide and a performance dashboard of their local finances, including a recognition of their unfunded liabilities.”

This Citizen’s Guide is published in accordance with the requirements of EVIP. We have used the state-recommended reporting template in preparing the Guide. Because of the required time frame for submission, it is not possible to include audited financial data for the most recent fiscal year completed June 30, 2013. The City’s Comprehensive Annual Financial Report, which will be published at the end of October, includes full audited results for the June 30, 2013 fiscal year.

Also in accordance with EVIP, the City has published on its website a performance measurement dashboard that monitors performance trends in four key areas: Fiscal Stability, Economy, Quality of Life, and Public Safety. The City’s performance dashboard can be accessed here.

We hope that the Citizen’s Guide to Local Finances together with the City’s performance dashboard enhances the City’s transparency and public accountability.

If you have any questions or comments, you can leave them in the comment section below or email finance@shorelinecity.com.

Click Here to view the 2013 EVIP Citizens Guide

FY2013-14 Proposed Budget Available

The budget for the City of Muskegon’s 2013-14 fiscal year (7/1/13 – 6/30/14) is now available for public inspection. The City’s financial situation remains very difficult, as it does for most Michigan government units. However, the City’s proposed budget maintains critical services at their current levels without increasing taxes.

Click to view City budget

Highlights:

  • There is no increase proposed in the City’s tax rate for general operations.
  • A 10% water rate increase is proposed.
  • Transportation services for the City’s senior citizens will be restored through a contractual arrangement with a private transportation company.
  • A new fire pumper truck is scheduled to be purchased replacing an older piece of equipment that is at the end of its useful life.
  • The proposed budget provides funding for 227 full-time positions: 108 police and fire positions and 119 other position categories including public works, clerical and administrative. As recently as 2003, the city had 309 full-time positions.
  • The proposed budget includes the full actuarial costs for funding pensions and other retirement benefits. This ensures that these costs are not pushed down the road for future generations to pay.
  • Income taxes and state shared revenue appear stable for now. Property taxes, however, have fallen with declining home values and a large number of tax appeals. The City is also confronted with the announced future closing of its largest tax-paying facility – the BC Cobb power plant.

The complete budget is available for review by clicking on the nearby image.

The budget will be discussed in detail at the City Commission work-session to be held Monday June 10th at 5:30PM. A public hearing on the budget will be held the following evening at the regular City commission meeting (Tuesday, June 11, 2012 also at 5:30 PM).

Under City ordinance, final adoption of the budget must occur no later than the second regularly scheduled June meeting (Tuesday, June 25, 2012, 5:30PM).

All meetings will be held in the 1st floor City Commission Chamber of City Hall. City Hall is located at 933 Terrace Street.

If you have questions concerning the budget, you can post them in a comment below or email them to: finance @ postman.org (leave spaces out).

2013 Budget Final

Audited Financial Report for 6/30/12 Fiscal Year Now Available

Click to see 2012 CAFR

The City of Muskegon Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2012 is now available online.

The CAFR summarizes the city’s financial activity for the year and includes the unqualified opinion of the City’s independent auditor – Brickley DeLong.

Highlights from the FY12 CAFR include:

  • The assets of the City of Muskegon exceeded its liabilities by $133,007,035 as of June 30, 2012. Of the total net assets, $21,798,286 (16.4%) was unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors.
  • The City’s governmental funds reported combined ending fund balance of $13,438,058, an increase of $2,511,718 (23%) from the prior year. The increase is attributable to the receipt of proceeds from a $2.0 million bond issue for street projects and to favorable General Fund operating results.
  • For the year ended June 30, General Fund revenues 2012 were $353,135 higher than the final amended budget estimate. This positive revenue variance is due to higher than expected local income tax and state shared revenues.
  • General Fund expenditures were $297,286 less than projected in the amended budget. Most city departments spent less than expected due to a combination of 1) tight budget controls, 2) conservative budget projections and, 3) cost savings realized from budget cuts made in the prior year.

You can view the FY12 CAFR by clicking here. You can view CAFR reports from prior years here.

2012-13 Budget

The budget for the City of Muskegon’s 2012-13 fiscal year (7/1/12 – 6/30/13) is now available. The City’s financial situation remains very difficult, as it does for most Michigan government units. However, the proposed FY 2012-13 budget maintains critical services at their current levels without increasing taxes.

Highlights:

  • The proposed budget provides funding for 233 full-time positions: 108 police and fire positions and 125 other position categories including public works, clerical and administrative. As recently as 2003, the city had 309 full-time positions.
  • The proposed budget includes the full actuarial costs for funding pensions and other retirement benefits. This ensures that these costs are not pushed down the road for future generations to pay.
  • Income taxes and state shared revenue appear stable for now. Property taxes, however, have fallen with declining home values and a large number of tax appeals. The City is also confronted with the announced future closing of its largest tax-paying facility – the BC Cobb power plant.

Click to view City budget

The complete budget is available for review by clicking on the nearby image.

The budget will be discussed in detail at the City Commission work-session to be held Monday June 11th at 5:30PM. A public hearing on the budget will be held the following evening at the regular City commission meeting (Tuesday, June 12, 2012 also at 5:30 PM).

Under City ordinance, final adoption of the FY 2012-13 budget must occur no later than the second regularly scheduled June meeting (Tuesday, June 26, 2012, 5:30PM).

All meetings will be held in the 1st floor City Commission Chamber of City Hall. City Hall is located at 933 Terrace Street.

If you have questions concerning the budget, you can post them in a comment below or email them to: finance @ postman.org (leave spaces out).

2013 Budget Final