City Commission Packet 01-10-2023

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                                               City of Muskegon
                                           City Commission Meeting
                                                    Agenda

                                          January 10, 2023, 5:30 pm
                                                Muskegon City Hall
                                   933 Terrace Street, Muskegon, MI 49440

ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO
INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF
MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440
OR BY CALLING (231) 724-6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-
6705.

                                                                                              Pages

  1.    Call To Order

  2.    Prayer

  3.    Pledge of Allegiance

  4.    Roll Call

  5.    Honors, Awards, and Presentations

        5.a      Audit Presentation - ACFR

  6.    Public Comment on Agenda Items

  7.    Consent Agenda

        7.a      Approval of Minutes - City Clerk                                                  1

        7.b      Lakeshore Creative Services, LLC - City Clerk                                   24

         7.c     Transmittal of 6/30/22 Annual Comprehensive Financial Report - Finance          27

        7.d      Michigan Homeowner Assistance Fund (MIHAF) Applicaiton - City Treasurer        201

        7.e      Leads Online - Public Safety                                                   215

         7.f     Towing Agreement - Public Safety                                               242
      7.g    Janitorial Contract - Arena                                                      256

      7.h    Boys & Girls Club Agreement - Public Works                                       264

       7.i   Community EnCompass Agreement - Public Works                                     272

       7.j   CLG Grant Application - Public Works                                             280

      7.k    Treasury Office Fire Doors - Public Works                                        302

       7.l   Dollar General Utility Easement - Public Works                                   308

      7.m    Street Vacation - Portion of Viridian Drive, East of Terrace Street - Planning

      7.n    Sale of 1320 Spring Street - City Manager                                        314

      7.o    Sale of 750 Leonard Avenue - City Manager                                        321

      7.p    Sale of 1499 Hoyt Street - City Manager                                          328

 8.   Public Hearings

      8.a    Brownfield Plan Amendment, 1st Amendment, Adelaide Pointe QOZB, LLC              335

 9.   Unfinished Business

10.   New Business

11.   Any Other Business

12.   Public Comment on Non-Agenda items

13.   Closed Session

14.   Adjournment
                     Agenda Item Review Form
                      Muskegon City Commission

Commission Meeting Date: January 10, 2023           Title: Approval of Minutes

Submitted By: Ann Marie Meisch, MMC                 Department: City Clerk

Brief Summary:   To approve the minutes of the November 22, 2022 Regular Meeting, December
12, 2022 Worksession, and December 13, 2022 Regular Meeting.



Detailed Summary: N/A




Amount Requested: N/A                             Amount Budgeted: N/A

Fund(s) or Account(s): N/A                        Fund(s) or Account(s): N/A

Recommended Motion: To approve the minutes.




For City Clerk Use Only:


Commission Action:




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     C I T Y O F M U S K E GO N
          CITY COMMISSION MEETING
       N O V E M B E R 2 2 , 2 0 2 2 @ 5 : 3 0 P. M .
     MUSKEGON CITY COMMISSION CHAMBERS
  9 3 3 T E R R AC E S T R E E T, M U S K E GO N , M I 4 9 4 4 0


                                     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, November 22, 2022,
Reverend D.W. Tolbert, New Hope Baptist Church, opened the meeting with a prayer,
after which the Commission and public recited the Pledge of Allegiance to the Flag.
Present: Mayor Ken Johnson, Commissioners, Rebecca St.Clair, Rachel Gorman, Michael
Ramsey, Interim City Manager LeighAnn Mikesell, City Attorney John Schrier, and City
Clerk Ann Meisch.
Absent: Vice Mayor Willie German, Jr., Commissioners Eric Hood and Teresa Emory
HONORS, AWARDS, AND PRESENTATIONS:
  A. Years of Service Award/Recognition
The Mayor and Commissioners congratulated and thanked city employees for various
levels of years of distinguished, loyal service. Certificates of Appreciation were presented
to those employees that were in attendance.
PUBLIC COMMENT ON AGENDA ITEMS:                     Public comments were received.
2022-99       CONSENT AGENDA:
  A. Approval of Minutes           City Clerk
SUMMARY OF REQUEST:         To approve the minutes of the October 25, 2022 Regular
Meeting.
STAFF RECOMMENDATION:              To approve the minutes.
  B. Sale – 522 Ottawa             Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the City owned
unbuildable vacant lot to West Urban Properties, LLC.



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West Urban Properties LLC would like to purchase the City owned unbuildable lot to
join with the property adjacent to it in order to construct commercial structure(s) on
the lots (once combined) within eighteen (18) months. The property is zoned B-4
(General Business). The buyer made an offer of $5,625 which is less than 75% of the
True Cash Value (TCV). If this were a buildable lot; then the asking price would be
$11,250. There has been no interest in developing this property. The City has owned
this property since 1983. There are easements on this property for the vacated
Giddings Avenue as well as a telephone company easement.
STAFF RECOMMENDATION:            To authorize the Code Coordinator to work with the
developer and complete the sale of the City-owned buildable lot as described and to
have the Mayor and Clerk sign the purchase agreement and deed.
  C. Sale – 754 Leonard Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the city-owned
home at 754 Leonard in Jackson Hill to Nicole R. Blackshire.
The city is constructing a single-family detached home as part of our ARP infill housing
program with Mr. Rubin Briggs and LRS Enterprises. Our contract to construct six homes
was for $1.5 million, and the estimated finished costs of this home will be $235,000. We
also anticipated $10,000 in sales commissions. The accepted purchase price is $220,000,
and the incurred sales commissions are $10,000. The City will not contribute funds
toward closing costs outside of seller’s agent commission.
STAFF RECOMMENDATION:              To authorize the Code Coordinator to complete the
sale of 754 Leonard Street, as described in the purchase agreement and for the Mayor
and Clerk to sign the deed.
  D. CSX Rail Line Acquisition           City Manager
SUMMARY OF REQUEST: Staff is requesting that Commission authorize an extension
to the closing deadline for the acquisition of the CSX Rail Line Property.
CSX is working on their contracted due diligence period for the closing of the Rail Line
property and has requested an extension. The City Attorney’s Office has prepared the
attached amendment that has been mutually agreed upon.
STAFF RECOMMENDATION:           To approve the Amended Closing Agreement as
presented and authorize the Mayor and Clerk to sign.
  E.   Stormwater Maintenance Agreements Public Works
SUMMARY OF REQUEST: Staff seeks authorization to enter into stormwater
maintenance agreements with two recent property owners, Newkirk Electric and Pioneer
Resources, in accordance with the recently adopted stormwater ordinance.


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The recently adopted stormwater ordinance requires that private developers subject
to the rules enter into an agreement with the City. The agreement requires them to
maintain their private stormwater system in perpetuity, because it connects to the
City’s system and good maintenance of the private system ensures problems do not
migrate downstream and become the City’s problems. Previously, developers
subject to the rules were required to enter into these agreements with the County
Drain Commissioner’s Office; as a part of taking over management of our own
stormwater ordinance, the City must now be a party to the agreements. We are
required to enter into these agreements as a part of our responsibilities to the
Michigan Department of Environment, Great Lakes and Energy (EGLE).
Two developments have gone through reviews under the City’s rules during the
transition process, and now seek to close out their stormwater permitting by
completing the agreements. They are Newkirk Electric located at the corner of
Roberts and Laketon, and Pioneer Resources, located at the corner of Roberts and
Wesley.
The agreements, if approved, will be recorded at the County Register of Deeds and
include requirements to make sure the property owner maintains the system and
provides records of that maintenance to the City. EGLE will audit the City
occasionally to make sure the maintenance and records are according to procedure.
Staff also seeks guidance as to whether the Commission would like these agreements to
continue to come to Commission for approval, or if staff should develop a policy that
authorizes an appropriate staff member to be designated to enter into these
agreements on behalf of the City.
STAFF RECOMMENDATION:           To authorize staff to enter into stormwater
maintenance agreements with Newkirk Electric and Pioneer Resources in accordance
with the recently adopted stormwater ordinance.
  G. Amendment to Marihuana Overlay District – Drive Thrus/Signs 2nd Reading
     Planning
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2331 of the zoning
ordinance to reduce signage restrictions on marihuana businesses and to allow drive-
thru marihuana facilities under certain conditions.
After discussing the proposed ordinance at the Planning Commission meeting, the
board decided to slightly modify the proposal and request that all drive thru’s
require a special use permit. The final language approved in the motion is as follows:
   Section 2331:
      B. Grower, Excess Grower, and Processor Requirements:


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           1. Signage. Signage shall follow the regulations set forth by the underlying
              zoning district.


       C. Provisioning Center, Retailer, Microbusiness and Designated Consumption
          Establishment Requirements:


           1. Signage. Signage shall follow the regulations set forth by the underlying
              zoning district.

           4. Curbside/Drive Thru. Curbside delivery is allowed at all retail sale locations
              with an approved site plan that does not impede traffic or pedestrian
              safety. Drive thru’s are allowed as a special use permitted under the
              following conditions:

               a. The underlying zoning designation must be B-2, B-4, MC, I-1, I-2 or
                  any Form Based Code designation/building type that allows for drive
                  thru businesses.
               b. Drive-thru windows must be located on private property. Streets and
                  alleys may only be used for the movement of traffic and may not be
                  used for drive-thru vehicular stacking.
               c. A traffic study must be performed showing anticipated number of
                  stacking spaces and where they would be located on site.
STAFF RECOMMENDATION:              To approve the request to amend Section 2331 of the
zoning ordinance to reduce signage restrictions on marihuana businesses and to allow
drive-thru marihuana facilities with the conditions listed as proposed.
Motion by Commissioner Ramsey, second by Commissioner Gorman, to accept the
consent agenda as presented, minus item F.
ROLL VOTE: Ayes: Johnson, Ramsey, Gorman, and St.Clair
              Nays: None
MOTION PASSES
2022-100      REMOVED FROM CONSENT AGENDA:
  F.   MDNR Conversion Assistance         Public Works
SUMMARY OF REQUEST: Staff requests authorization to enter into a Professional
Services Agreement with Ramboll for assistance in resolving the conversion of several
grant-encumbered recreation properties throughout the City.



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The Adelaide Pointe and Hartshorn Village projects are going to impact grant-
encumbered recreation properties in the form of Hartshorn Marina and the Lakeshore
Trail. As those development projects progress, the city will need to work with the
MDNR and the National Park Service to ensure that the impacts to those and other
encumbered properties are properly mitigated.
The MDNR manages this process on the state level and terms this as a “conversion,”
wherein an area that is encumbered for public outdoor recreation is converted into
another use. The encumbered area that is converted into non-recreation space must
be replaced by an equal or greater value area that is newly dedicated to public outdoor
recreation.
The MDNR allows for multiple conversions to be resolved concurrently. As such, we
have requested assistance with other potential conversion properties, such as the Third
Street Wharf, Fisherman’s Landing and Mid-Michigan Railroad Muskegon Lake south
spur properties so that we may reach a more complete resolution that mitigates the
possibility of future conversions.
No one on city staff has experience working through the multi-step process proscribed
by the MDNR, so we have requested solicit proposals from interested firms to provide
us technical assistance and experience in navigating the complex process.
Upon reviewing the proposals, it was clear that the first half of the MDNR-proscribed
process is quite different from the second half. The first half involves identifying
potential candidate new recreation properties and discussing their value with the
MDNR, while the second half involves detailed appraisals and environmental work on
properties that have been determined good candidates. To that end, staff recommends
award only of the first half of the process at this time. This will help to ensure
expensive appraisal and environmental services are only invested in good candidates,
and will allow staff to more accurately budget for the second half of the process in the
next fiscal year.
Staff is requesting to award the services for the first half of the process to Ramboll, the
highest scoring firm. Staff scored the proposals using Qualifications Based Selection
criteria to ensure we were selecting the best partner for this important project. The
scoring showed Ramboll as the leading firm, and staff recommends contracting with
them based on their proposal and their history of service. Ramboll has provided
engineering services for partner organizations in the past, including award-winning
service to WMSRDC for the Amoco Fish and Wildlife Habitat Restoration Project near
the west end of Laketon Ave, which included repairs to the Lakeshore Trail from high
water damage.
As was noted in July when the RFP for these services was presented to the Commission:



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      This item was not included in the FY22-23 budget due to the unknown timelines
       for the development of the Adelaide Pointe and Hartshorn Village properties.
       With development now moving forward quickly, the properties are already
       considered to be under conversion by the MDNR, and this process needs to
       move forward to begin to resolve them.
      Entering into the conversion process will effectively eliminate the City from
       consideration for most MDNR grant programs until such time that the
       conversion is satisfactorily resolved. This does not include the Spark grant
       program, which does not have scoring implications for being in an active
       conversion.
The conversion process is expected to take at least a year to complete as some of the
impacted properties are encumbered through the National Park Service and require
federal concurrence.
AMOUNT REQUESTED:          $58,501
FUND OR ACCOUNT:           101-770 (Parks Maintenance)
STAFF RECOMMENDATION:            Authorize staff to enter into a Professional Services
Agreement with Ramboll for assistance in resolving the conversion of several grant-
encumbered recreation properties throughout the city.
Motion by Commissioner St.Clair, second by Commissioner Gorman, to authorize
staff to enter into a Professional Services agreement with Ramboll for assistance in
resolving the conversion of several grant-encumbered recreation properties
throughout the city.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, and Ramsey
             Nays: None
MOTION PASSES
2022-101     NEW BUSINESS:
  A. First Quarter Budget Reforecast            Finance
SUMMARY OF REQUEST: At this time staff is asking for approval of the 1st Quarter
Budget Reforecast for the FY2022-23 budget year.
Staff has prepared the 1st Quarter Budget Reforecast memo outlining some of the
highlights is attached and supporting documentation.
STAFF RECOMMENDATION:             To approve the 1st Quarter FY 2022-23 Budget
Reforecast as presented.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve

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the 1st Quarter FY 2022-23 Budget Reforecast as presented.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, and Ramsey
             Nays: None
MOTION PASSES


ANY OTHER BUSINESS:
Commissioner St.Clair recognized the clerk and staff as well as other city staff that
helped with the election. Mayor Johnson expressed the commission’s appreciation to
Interim City Manager, LeighAnn Mikesell, as this will be her last meeting as Interim.
Mayor Johnson invited all to the house swearing-in ceremony for Jonathan at 9:00 a.m.
with light refreshments. The Mayor also invited all to participate in the Christmas Tree
Lighting on Saturday, November 26, 2022 at 5:15 at Hackley Park.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:46 p.m.


                                                Respectfully Submitted,




                                                Ann Marie Meisch, MMC – City Clerk




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                                  CITY OF MUSKEGON
                            CITY COMMISSION WORKSESSION
                               Monday, December 12, 2022
                                        5:30 pm
                               City Commission Chambers

                                          MINUTES

Present: Commissioners Hood, Emory, Johnson, Gorman, and German.
Absent: Commissioners St. Clair and Ramsey.

Kris Collee - AgeWell Services – Presentation Regarding Senior Millage

Kris Collee gave a presentation regarding the services AgeWell Services offer through the
Senior Millage program.

Long Term Goals Review
City staff has made great strides working on long term goals. The goals were approved in July
2022. Deputy City Manager LeighAnn Mikesell listed many projects that staff from all
departments has been assisting with in the areas of destination community & quality of life,
economic development, housing, and business, community connection, and financial
infrastructure.

Muskegon Ordinance & Muskegon Social Equity Program Update
Staff is seeking guidance in the following areas:

How to spend this years Education/Hard Reduction funds
How to spend 2021 & 2022 Expungement Clinic funds
How to roll over unused funds from previous years
How to advertise for scholarships
Direction for 2023 funds

Mike Franzak reviewed the current guidelines and offered some suggested changes for
tomorrow’s Commission meeting.

The Commission discussed possibly doing a Request For Proposal for an expungement clinic
and that the service be offered completely for free to any City of Muskegon resident. The RFP
will be presented to the City Commission the first meeting in January.

The Commission would like to see education to younger people possibly through the school
system and to provide discussion about the recreational use and possible repercussions with
employment.




                                               9
Crayton Goins, with Greenwood Gardens, 1839 Peck Street, would be willing to provide higher
learning state-certified training and have offered to split the cost of the training with the City of
Muskegon.

This item will be on the December 13, 2022 Commission meeting for consideration.

Brownfield and Infill Housing Presentation
Jake Eckholm presented a powerpoint presentation on the infill housing program. Most of the
parcels and houses have been placed in the City’s Brownfield Plan Amendment to recover costs
and losses related to the program. The City also uses Tax Increment Financing that allows
municipalities to withhold and retain other taxing jurisdictions funds for eligible expenses.

Any Other Business
Commissioner Emory indicated she has received several complaints of residents receiving
parking tickets at Grand Trunk. She has been told this is for paid parking only for ice fishermen
in the winter time.

The parking stickers are currently not available. Citizens may purchase a voucher for a sticker
that can be turned in at a later date.

Public Comments
None.

Adjourn.
Moved by Commissioner Hood, seconded by Commissioner Emory to adjourn the meeting at
6:59 pm

                                                       Respectfully Submitted,




                                                       Ann Marie Meisch, MMC – City Clerk




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     C I T Y O F M U S K E GO N
         CITY COMMISSION MEETING
        D E C E M B E R 1 3 , 2 0 2 2 @ 5 : 3 0 P. M .
     MUSKEGON CITY COMMISSION CHAMBERS
  9 3 3 T E R R AC E S T R E E T, M U S K E GO N , M I 4 9 4 4 0


                                    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, December 13, 2022, Reverend
Diane Stark from Unity of Muskegon, opened the meeting with a prayer, after which the
Commission and public recited the Pledge of Allegiance to the Flag.
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners Rachel
Gorman, Michael Ramsey, and Teresa Emory, City Manager Jonathan Seyferth, City
Attorney John Schrier, and City Clerk Ann Meisch.
Absent: Commissioners Michael Ramsey and Rebecca St.Clair
HONORS, AWARDS, AND PRESENTATIONS:
  A. Recognition of 9/11 Event Participants by BSA Troop 1053
Dave Paulson, Scout Master of Troop 1053, and Eagle Scout Parker Macjewski presented
certificates of Appreciation and Recognition to participants from two separate 9/11
events that were held at the USS LST 393 and USS Silversides. Those recognized
included Mayor Johnson, 92nd District State Representative Terry Sabo, 34th District
State Senator Jon Bumstead, Master of Ceremonies, James Flood, and Petty Officer First
Class Jeff Fisher. An appreciation certificate and event patch were presented to each
participant that was in attendance. All are invited to attend the events next year on
September 11, 2023 at both the USS LST 393 and USS Silversides.

  B. Recognition of Muskegon Police Officers
Public Safety Director, Chief Tim Kozal, recognized three officers of the Muskegon Police
Department - Mike Lamsma promoted to Sergeant in 2018 and recently retired.
Sergeant John Burns, promoted to his current position on December 22, 2022. Officer Al
Hairston received the Black Magic Award from the Young Black Professionals Group on
November 28, 2022 for serving as a positive role model.

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  C. New Staff Introductions – Planning & Economic Development
Jake Eckholm, Development Services Director, introduced Contessa Hood, Development
Analyst, a new hire in the department. Contessa was born and raised in Muskegon,
graduated from Reeth's Puffer and Central Michigan University and is excited to be here
after being away from Muskegon for several years.

  D. Resolution Presentation to Leo Evans, Outgoing Director of Department of
     Public Works
Mayor Johnson presented Leo Evans, Department of Public Works Director, with a
resolution recognizing his service to the City of Muskegon. We all wish him the best at
his new position in Colorado.

PUBLIC COMMENT ON AGENDA ITEMS:                   No public comments received.
2022-103     CONSENT AGENDA:
  A. Approval of Minutes          City Clerk
SUMMARY OF REQUEST:        To approve the minutes of the November 7, 2022
Worksession Meeting.
STAFF RECOMMENDATION:             To approve the minutes.
  B. Sale of 1318 Pine Street City Manager
SUMMARY OF REQUEST:        Staff is requesting approval of the purchase agreement for
1318 Pine Street.
1318 Pine Street was constructed through the agreement with Dave Dusendang to
construct infill housing with ARPA funding.
STAFF RECOMMENDATION:             To approve the purchase agreement for 1318 Pine
Street.
  D. Non-Union Part Time & Limited Term Wage Matrix                 EEO & Employee
     Relations
SUMMARY OF REQUEST:        This is the proposed non-union, part-time and limited-term
wage matrix for 2023.
STAFF RECOMMENDATION:             Approve the non-union, part-time and limited-term
wage matrix for 2023.
  E.   Amendments to the Muskegon Social Equity Program Application
       Planning
SUMMARY OF REQUEST: Request to amend the programs and the requirements for
the Muskegon Social Equity Program and associated application.

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Changes include:
      Clarified how much funding an applicant may receive (Up to $10,000 unless
       approved by the Commission).
      For “Education/Training Scholarship”, “Business Start-Up Grant” and “Business
       Start-Up Loan”, added a stipulation that a parent could also have had the
       conviction while the applicant was in school.
      Created a new category, the “Marihuana Industry Training Scholarship”. This is for
       residents that want to get into the marihuana industry. There are more options to
       qualify for this than the “Education/Training Scholarship.”
      Removed the “Marihuana Equipment Grant” category since it could be covered
       by the “Business Start-Up Grant.”
STAFF RECOMMENDATION:           To approve the changes to the Muskegon Social
Equity Program and associated application as presented.
  F.   Roberts Street Reconstruction Award Public Works
SUMMARY OF REQUEST: Staff is requesting approval of a contract with McCormick
Sand, Inc. in the amount of $828,230.30 for the reconstruction of Roberts Street from
Sherman to Laketon, with $372,703.61 being covered by a TEDF Category F grant from
MDOT.
On November 7, 2022, Commission approved a grant agreement with MDOT that
awarded up to $375,000 to the City for a Transportation Economic Development Fund
(Category F) Grant, with the specific amount being 45% of the construction contract.
The City received bids on November 28, 29022, and McCormick Sand, Inc. was the low
bidder at $828,230.30. The grant, at 45%, will cover $372,703.64 of the project cost,
leaving $455,526.66 for the City to pay out of the highway fund. The bids came in
substantially below the estimate, so this request is for over $200,000 less than was
authorized at the time of the grant agreement. McCormick Sand has performed
admirable for the City in the past, and staff recommends award.
AMOUNT REQUESTED:          $455,546.66     AMOUNT BUDGETED: $825,000 Requested
                                                                 $31,880.07 Expended
                                                               $793,119.93 Remaining
FUND OR ACCOUNT:           202 (Major Streets)
STAFF RECOMMENDATION:            Approval of the contract with McCormick Sand, Inc. in
the amount of $828,230.30 for the reconstruction of Roberts street from Sherman to
Laketon.


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  I.   Muskegon Conservation District (MCD) Native Planting Project
       Public Works
SUMMARY OF REQUEST: Staff is requesting a letter of support and commitment of
matching funds to support a joint initiative with the Silversides Museum and the
Muskegon Conservation District for a native planting project.
The Silversides Museum has worked with the City and Muskegon Conservation District
(MCD) to identify several areas surrounding the museum campus that they would like to
see converted into native plantings. Much of the area is currently maintained as lawn
and provides limited recreational/pollinator value while requiring routine maintenance
to maintain. The conversion of these areas to native plantings would achieve all of the
goals outlined on page 2 of the 2018 Urban Pollinator Habitat Plan. This area was not
specifically identified in the 2018 plan, however most of the areas that were identified
have already been accomplished or have run into obstacles that have prevented or
delayed implementation.
The project has received a letter of support from the Silversides Museum who is
currently responsible for the maintenance of a portion of the designated area, and is
also supported by City staff that maintain the remainder of the area. Staff from the
Silversides Museum has also engaged the Beachwood-Bluffton Neighborhood
Association and has solicited a letter of support from that group. Staff from the
Silversides Museum will also be engaging with the six (6) residents along Channel Drive
regarding the conversion of the property across from them.
MCD is currently in the process of applying for a grant through the Wildflower
Association of Michigan to partially fund this project and is seeking a formal letter of
support from the City, authorization to use the property (City is the underlying land
owner of all the impacted property), and a commitment of up to $4,500 in matching
funds to support the invoiced implementation costs. In addition, the city will provide in
kind services to support the implementation should the grant be successful by assisting
with yard waste removal and cleanup on the site. A majority of the work will be
completed by MCD staff with assistance from volunteer groups organized through the
Silversides Museum.
Though this project was not specifically identified in the initial budget drafting the
expense is relatively small and staff is comfortable that it can be allocated within the
existing Parks budget with minimal to no adverse impacts.
AMOUNT REQUESTED:           $4,500        AMOUNT BUDGETED: $0
FUND OR ACCOUNT:            101-770 (Parks Maint)
STAFF RECOMMENDATION:             To authorize the DPW Director to sign the letter of
support, the grant authorization and the property access letter, the MCD Cooperator

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Agreement and commit up to $4,500 in matching funds towards the project
implementation should the grant be successful.
  J.   MDNR SPARK Grant Resolution Public Works
SUMMARY OF REQUEST: Staff is requesting approval of the resolution for inclusion
with our SPARK Grant Application due on December 19, 2022.
Staff has been working to identify a potential target project for the newly established
MDNR SPARK Grant program and based on previous staff recommendation and
commission action staff is working towards submitting a packet related to
reconstruction of the Muskegon Splash Pad.
An RFP was issued and proposals received from interested firms on Tuesday, November
29th. Staff is working to vet and shortlist the submitted proposals so they can be
presented to the commission and community for feedback in help determining the best
proposal for the site.
Given that the design and selection is not yet finalized at the application deadline, staff
is pursuing a grant in the amount of $250,000 and proposing that the remaining cost be
provided by the city as a local match. This creates a variable match amount ranging
from $23,913.00 to $218,300 depending on which design is selected to pursue.
Application packets are due on December 19th, 2022 with an expected quick turn around
and announcement of the first-round recipients in January 2023. If the project is not
successful in the first round of funding it will be automatically enrolled for consideration
in future rounds of funding.
If the project is selected for funding in the first round it is possible that construction
could take place as quickly as the Spring/Summer of 2023.
AMOUNT REQUESTED:            $23,913 - $218,300           AMOUNT BUDGETED: $0
FUND OR ACCOUNT:             TBD
STAFF RECOMMENDATION:               Approve the resolution and authorize the Clerk to
sign.
  K. Non-Union Pay/Benefits 2023 City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the 2023 non-union employee
wage and benefit program.
CPI is 8.5% this year. A review and comparison of past increases to union and non-union
staff is noted below.
2021: union staff received from 1% - 3% increases with an average of 2.1%
       Non-union staff received 0% plus a $500 lump sum payment


                                               Page 5 of 13

                                              15
2022: union staff received from 1% - 14.5% increases with an average of 4.6%
       Non-union staff received a 2% wage increase plus a 0.5% lump sum payment
2023: union staff will receive from 0% - 16% increases with an average of 5.6%
Between 2020 and 2023, union staff have received an average of 11.2% in wage
increases while non-union staff have received 2%.
We are seeking approval of the following:
8% wage increase
AMOUNT REQUESTED: $3,536,331.47                   AMOUNT BUDGETED: $3,400,072.55
STAFF RECOMMENDATION:             To approve the 8% wage increase for non-union staff
effective January 1, 2023.
  L.   Virtual Public Participation Policy        City Clerk
SUMMARY OF REQUEST:        To adopt a virtual public participation policy.
The Legislative Committee requested a policy be drafted allowing citizens the ability too
call in to make comment on any meeting played live on social media or television.
For any other meetings that fall under the Open Meetings Act, citizens must submit a
request at least tow business days in advance. A zoom link will be provided to those
individuals. They will have the ability to give up to three minutes of public comment.
STAFF RECOMMENDATION:             To adopt the Virtual Public Participation Policy as
presented.
  M. Conservation Easement Agreement at Remembrance Drive Site Development
    Services
SUMMARY OF REQUEST: Staff is requesting that Commission authorize a conservation
easement agreement between the City of Muskegon and James Street Capital, owner of
the 500,000 square foot warehousing facility that is operated by KL Outdoors.
During the planning and construction of the large warehousing building in 2017 and
2018, MDEQ (now EGLE) cited a small piece of regulated wetland and the build-site. The
Developers at the time requested that the city consider allowing a conservation
easement on an adjacent, non-buildable city-owned parcel. This was principally agreed
upon by all parties as a logical solution, but never completed. The agreement codifies
the easement and completes the wetland mitigation process for this development.
Attached in this item is the easement agreement signed by the current owners of KL
Outdoor, a letter from the city manager’s office allowing a mitigation study and
easement due diligence on our property, and an aerial photo illustrating the impacted
wetland (which is now built on) in red and the proposed easement area in blue.

                                              Page 6 of 13

                                             16
STAFF RECOMMENDATION:           To approve the Conservation Easement Agreement as
presented and authorize the Mayor and Clerk to sign.
  O. CRC Recommendation Regarding Attendance Policy                City Clerk
SUMMARY OF REQUEST: The CRC recommends making amendments to have a set
number of excused and unexcused absences that is the same for all boards within the
Community Relations Committees. The number of absences would be different
depending on how often the board meets.
The CRC recommends making amendments to have a set number of excused and
unexcused absences that is the same for all boards within the Community Relations
Committees. The number of absences would be different depending on how often the
board meets.
Meetings that meet monthly:
      Not more than 3 Unexcused missed meeting during the year.
      Not more the 4Excused/Absent missed meetings during the year.
Meetings that meet quarterly:
      Not more than 1 Unexcused missed meeting during the year.
      Not more the 2 Excused/Absent missed meetings during the year.
Meetings the meet semiannually:
      Not more than 1 Unexcused missed meeting during the year.
      Not more the 1 Excused/Absent missed meeting during the year.
Meetings that meet annually
      No Unexcused or Excused missed meetings permitted.
Definition of Terms:
Unexcused – Does not notify Board Liaison of absence and does not attend meeting.
Excused – Notifies Board Liaison of absence at least 72 hours in advance of missed
meeting.
Absent – Reserved for emergency situations and up to the discretion of the Board
Liaison and Community Relations Committee members.
STAFF RECOMMENDATION:           To concur with the Community Relations Committee
and adopt the revised Attendance Policy.
  P. CRC Recommendation Regarding Reappointments to BID BoardCity Clerk
SUMMARY OF REQUEST:        To concur with Community Relations Committee on

                                            Page 7 of 13

                                          17
reappointments to Business Improvement District Board.
The CRC recommends reappointing Bruce Lindstrom and Bob Tarrant – Assessed
property owners or their representatives – Terms Expiring 12/31/2025, to the Business
Improvement District.
STAFF RECOMMENDATION:             To approve the reappointments.
Motion by Commissioner Gorman, second by Commissioner Emory, to accept the
consent agenda as presented, minus items C, G, H, and N.
ROLL VOTE: Ayes: Johnson, Hood, German, Gorman, and Emory
             Nays: None
MOTION PASSES
2022-104     REMOVED FROM CONSENT AGENDA:
  C. Good Temps Staffing Services Extension             EEO & Employee Relations
SUMMARY OF REQUEST: The City is requesting an extension for the Good Temps
Staffing Service Agreement of one year. This agreement will be from January –
December, 2023.
STAFF RECOMMENDATION:           To approve the one-year extension of the Good
Temps Staffing Service Agreement for 2023.
Motion by Commissioner Gorman, second by Commissioner Emory, to approve the
one-year extension of the Good Temps Staffing Service Agreement for 2023.
ROLL VOTE: Ayes: Johnson, Hood, German, Gorman, and Emory
             Nays: None
MOTION PASSES
  G. Hartshorn Marina 2023 Rates         Public Works
SUMMARY OF REQUEST: Staff is seeking Commission approval to set the 2023 Rates
for Hartshorn Municipal Marina.
Staff is proposing to set the rates at Hartshorn Marina for the 2023 season as follows,
these rates are also currently under the review b MDNR for the 2023 season as follows,
these rates are also currently under review by MDNR for their concurrence as a Grant-
In-Aid Harbor which we are obligated to operate as through the 2024 boating season.
      30 FT Slip = $2,580 (2022 Rate = $2,310)
      40 FT Slip = $3,440 (2022 Rate = $3,080)
      60 FT Slip = $4,620 (2022 Rate = $4,080)


                                            Page 8 of 13

                                           18
      Mooring Field = $583 (2022 Rate $583
      Transient = Range H (2022 Rate = Range G)
This is the first fee adjustment that has been proposed since the 2019 season. The
marina was closed in 2020, and the rates shown above for 2022 were also used during
the 2022 season.
It should be noted that since the loss of the T-Dock and the small boat basin following
the high-water cycles there has been limited to no availability for transient slips. All of
the 77current slips are slated for seasonal slip holders and roughly half of the mooring
field is reserved on an annual basis.
FUND OR ACCOUNT:            594
STAFF RECOMMENDATION:           Approve the 2023 user fee rates as proposed for
Hartshorn Marina provided the proposed rates are also approved by the Michigan
Department of Natural Resources (MDNR).
Motion by Commissioner Emory, second by Vice Mayor German, to approve the
2023 user fee rates as proposed for Hartshorn Marina provided the proposed rates
are also approved by the Michigan Department of Natural Resources (MDNR).
ROLL VOTE: Ayes: Hood, German, Gorman, Emory, and Johnson
              Nays: None
MOTION PASSES
  H. Sanitation Contract Extension         Public Works
SUMMARY OF REQUEST: Staff is seeking Commission approval to adopt a proposed
5.5. Yearn Extension of Sanitation Services with Republic Services, Inc. to provide Solid
Waste, Recycling, and Yard Waste Services for city residents.
The proposal from Republic Services proposed to largely extend the existing services in
place. The major changes are as follows:
      5.5 Year Extension (January 1, 2023 – June 30, 2028). Similar to previous extension
       terms but modified to align with the city fiscal year with a 4% rate increase on
       January 1, annually each year starting in 2024.
      Solid Waste cost per unit (residence) in 2023 at $12.26/unit (2022 Rate is
       $11.62/Unit)
      Recycling cost per unit in 2023 is $4.78/Unit (2022 Rate is $4.50/Unit)
      Solid Waste Cost is $100/Load (2022 Rate is $10.50/Ton or roughly $125/Load)
      Offers a soft reopener clause for changes in material elements of work greater
       than 15% year over year.

                                              Page 9 of 13

                                             19
      Provides complimentary service to several city utilized dumpsters around town
       that support Park and event operations.
      Provides that by 2027 Republic Services will implement a tracking mechanism to
       record which properties are collected and which are not on a daily basis and
       report that out in electronic format to the City. This information can be the basis
       of considering an alternative funding mechanism in future extensions if there is a
       desire to switch to a pay per use model rather than a pay per unit model, or to
       explore options that further incentivize recycling similar to how Grand Rapids
       handles their solid waste programming.
      No change to the bulk item (pink sticker) program, or the Neighborhood
       Dumpster Day program. Those remain in place at the costs established in
       previous contracts.
The current contract is set to expire at the end of the calendar year. Staff is very satisfied
with the service that Republic provides in terms of the level of support and cooperation
that is involved, as well as the price per unit to deliver this service to the city.
The first full year of the program is expected to cost approximately $2.2 million. The
22/23 budget includes $2.107 million for Republic Services. Being that on ½ of the fiscal
year will fall under this new contract we expect that the 22/23 budgeted amount will
very nearly cover the cost of this increase.
Revenue to support these costs are derived from the 3 mill sanitation fee levied on all
properties in the city, in addition to the Sanitation Fee charged on all water bills, and
any user fees collected for bulk item stickers, etc. These revenue sources should
continue to fully support the expenses of this contract with the potential need for minor
annual adjustments depending on the growth of the levied millage.
AMOUNT REQUESTED:                                   AMOUNT BUDGETED:
No Change to Budgeted Amount (22/23)                $2.075M (22/23)
$2.20 Million (23/24)                               TBD (23/24, and beyond)
$2.29 Million (24/25)
$2.38 Million (25/26)
$2.47 Million (26/27)
$2.57 Million (27/28)
FUND OR ACCOUNT:             101-521 (Sanitation)
STAFF RECOMMENDATION:               To approve the 5.5 year contract extension for
sanitation with Republic Services, Inc.


                                               Page 10 of 13

                                              20
Motion by Commissioner Gorman, second by Commissioner Hood, to approve the
5.5 year contract extension for sanitation with Republic Services, Inc.
ROLL VOTE: Ayes: German, Gorman, Emory, Johnson, and Hood
             Nays: None
MOTION PASSES
  N. 2023 FOP Contract            City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the proposed collective
bargaining agreement with the Fraternal Order of Police Labor Council.
City staff and Fraternal Order of Police Labor Council representatives have agreed upon
new contract items that would take effect January 1, 2023. A summary of the tentative
agreements and wage scale is attached, and the FOP has ratified the contract. The new
wage scale provides better distribution among classifications in patrol and command
over time. There is an impact to the budget with the revised wages. The formal
agreement is being prepared by counsel. The new agreement is beneficial to both
parties. Staff is prepared to begin implementing the provision of the contract on January
1, 2023.
AMOUNT REQUESTED: $97,341.55 increase            AMOUNT BUDGETED: $9,100,000
FUND OR ACCOUNT: 40301
STAFF RECOMMENDATION:             To approve the collective bargaining agreement with
the Fraternal Order of Police Labor Council as presented.
Motion by Commissioner Gorman, second by Commissioner Emory, to approve the
collective bargaining agreement with the Fraternal Order of Police Labor Council
as presented, which may be corrected for technical and grammatical reasons.
ROLL VOTE: Ayes: German, Gorman, Emory, Johnson, and Hood
             Nays: None
MOTION PASSES
2022-105     NEW BUSINESS:
  A. Housing Board of Appeals Demolition – 808 Oak Avenue              Public Safety
SUMMARY OF REQUEST: This is to request that the City Commission concur with the
findings of the Housing Board of Appeals that the structures are unsafe, substandard, a
public nuisance and that they be demolished within 30 days. It is further requested that
administration be directed to obtain bids for the demolition of the structures and that
the Mayor and City Clerk be authorized and directed to execute a contract for
demolition with the lowest responsible bidder or staff may issue infraction tickets to the

                                             Page 11 of 13

                                            21
owner, agent or responsible party if they do not demolish the structure.
The Housing Board of Appeals has deemed 808 Oak Avenue to be in property
maintenance violation since 2016. Property has been a long-standing area of blight and
public nuisance/hazard. Property includes a house, multiple outbuildings, two garages,
and two large pole barns. House is gutted down to the studs, has multiple holes in the
roof, and is unsecured. Garages, outbuildings, and pole barns are severely dilapidated.
Staff has not been inside buildings so the extent of the dilapidation is unknown. Owner
has expressed desire to sell property but has not provided any plan to bring the
property or buildings into compliance. No permits have been applied for. HBA declared
the house in September 2022. Owner has not been to any HBA meetings.
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals decision
to demolish and authorize administration to obtain bids for the demolition and that the
Mayor and Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.
Motion by Commissioner Hood, second by Vice Mayor German, to refer this item
back to the Housing Board of Appeals.
ROLL VOTE: Ayes: Gorman, Emory, Johnson, Hood, and German
             Nays: None
MOTION PASSES
  B. Adelaide Pointe Reimbursement Agreement City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the development reimbursement
agreement for Adelaide Pointe.
The development reimbursement agreement is the next step in the process of finalizing
the city’s partnership with the developer through the Brownfield Redevelopment
Authority. This agreement provides the outline for how the partners will cooperate on
funding the improvements to the site. The city will sell bonds for agreed upon expenses
and be reimbursed through tax capture. The developer will also incur brownfield eligible
expenses which will be repaid through tax capture. Individual addenda will be prepared,
throughout the term of the development project, to reflect project phases. Each
addendum will be presented to the BRA and the Commission for consideration and
approval.
Staff hosted a public forum on October 3, 2022 to gather public input and answer
questions about the development. The Brownfield Redevelopment Authority considered
the agreement at their December 13, 2022 meeting.
STAFF RECOMMENDATION:             To approve the development and reimbursement
agreement for Adelaide Pointe.

                                            Page 12 of 13

                                           22
Motion by Commissioner Gorman, second by Commissioner Hood, to approve the
development and reimbursement agreement for Adelaide Pointe.
ROLL VOTE: Ayes: Gorman, Emory, Johnson, Hood, and German
             Nays: None
MOTION PASSES

ANY OTHER BUSINESS: Vice Mayor German asked if there was an update on the
Mart Dock property lawsuit in Circuit Court - no update at this time.

Chief Kozal provided information about parking at Grand Trunk. The ordinances that
govern launch ramp parking 58-3 and 97-74.92-71 LO15 says that passes are required.
Recommends making it so that the ordinances so that they are easier to read for our
boat launch/marina. There is no enforcement at this time.

PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:45 p.m.


                                       Respectfully Submitted,




                                       Ann Marie Meisch, MMC – City Clerk




                                          Page 13 of 13

                                         23
                AGREEMENT BETWEEN THE CITY OF MUSKEGON
                                 AND
                    LAKESHORE CREATIVE SERVICES, LLC

      This agreement is made this 10th day of January, 2023, by and between City of
Muskegon, a Michigan municipal corporation (“City”) and Lakeshore Creative Service, LLC,
a domestic limited liability company (“Lakeshore”), who agree as follows:

                                            RECITIAL

      1. The City desires to have its City Commission meetings recorded and broadcasted on
         its cable television, public educational, and governmental (“PEG”) access channels
         provided pursuant to federal law.

      2. In exchange for broadcasting City Commission meetings, the City agrees to
         compensate Lakeshore and to encourage expansion of Lakeshore’s responsibilities
         and access to City’s Government Access Channel to broadcast programming
         consistent with PEG Channel purposes.

      NOW THEREFORE, in consideration of the mutual promises and covenants set forth
      herein, the parties agree as follows:

      SECTION 1. SCOPE OF SERVICES: Lakeshore shall provide the following services.

      1.1     BROADCASTING LOCAL GOVERNMENT PROGRAMMING. Produce and
      broadcast, regularly scheduled, City Commission meetings, excluding work sessions, and
      meeting of other committees, boards and commissions that the City might require, and
      other reasonable programs or issues that the City Commission may deem necessary.

      1.2    OTHER ACTIVITIES. Undertake other PEG access programming activities and
      services deemed appropriate by Lakeshore and consistent with the obligation to facilitate
      and promote PEG access programming and provide non-discriminatory access pursuant
      to an amendment(s) to this Agreement.

      SECTION 2. COMPENSATION:             City shall compensate Lakeshore as follows:

      2.1    CITY COMMISSION MEETINGS. Lakeshore shall be paid $450 per City
      Commission meeting. Payment shall be made in the calendar month following services
      provided.

      2.2     EQUIPMENT. Lakeshore paid up to $2,500 in 2019 for additional equipment, as
      approved in writing by the City Clerk. The equipment shall be owned by the City and
      shall be delivered to the City Clerk upon termination of this Agreement.




                                              24
2.3     EXTRA SERVICES. City Clerk and Lakeshore may agree to additional services
for a specified fee and insurance requirements. Such Agreement must be in writing and
signed by both parties to be effective.

SECTION 3. COPYRIGHT:

3.1     OWNERSHIP: The City shall own the copyright of any programs that the City
requests Lakeshore to produce and Lakeshore agrees to assign all such rights to the City
and shall execute all documents reasonably requested to effect such assignment and
registration of copyrights assigned. Copyright of all other programs shall be held by the
person(s) who produced the program.

SECTION 4. NON-DISCRIMINATION IN : Lakeshore shall not discriminate in the
delivery of services or against any person, employee, or applicant for employment or
contract work on the basis of race, color, creed, religion, sex, sexual preference, marital
status, ancestry, national origin or physical or mental disability.

SECTION 5. INDEPENDENT CONTRACTOR: It is understood and agreed that
Lakeshore is an independent contractor and that no relationship of principal/agent or
employer/employee exists between the City and Lakeshore. If in the performance of this
Agreement and third persons are employed by Lakeshore, such persons shall be entirely
and exclusively under the control, direction and supervision of Lakeshore. All terms of
employment, including hours, wages, working conditions, discipline, hiring and
discharging, or any other term of employment, shall be determined by Lakeshore and the
City shall have no authority over such persons or terms of employment.

SECTION 6. ASSIGNMENT AND SUBLETTING: Neither this Agreement nor any
interest herein shall be assigned or transferred by Lakeshore, except as expressly
authorized in writing by the City.

SECTION 7. TERMS OF AGREEMENT: This Agreement shall be for a period of two
years commencing January 10, 2023 and ending January 31, 2025, unless terminated
earlier, as provided in this Agreement.

SECTION 8. TERMINATION OF AGREEMENT/TRANSFER OF ASSETS: Either
party shall have the right upon sixty (60) days written notice.

SECTION 9. TIME: This is of the essence in this Agreement and for the performance of
all covenants and conditions of this Agreement.

SECTION 10. COOPERATION: Each party agrees to execute all documents and do all
things necessary and appropriate to carry out the provisions of this Agreement.

SECTION 11. APPLICABLE LAW: This Agreement shall be interpreted and enforced
under the laws of the State of Michigan.




                                         25
SECTION 12. NOTICES: All notices and other communication to be given by either
party may be given in writing, depositing the same in the United States mail, postage
prepaid and addressed to the appropriate party as follows:

               TO:    CITY OF MUSKEGON
                      Attn: City Clerk
                      933 Terrace Street
                      Muskegon, MI 49440

               TO:    LAKESHORE CREATIVE SERVICES, LLC
                      Attn: Andy O’Riley
                      NEED TO COMPLETE ADDRESS

Any party may change its address by written notice to the other party at any time.

SECTION 13. ENTIRE AGREEMENT: This Agreement is the entire agreement of the
parties and supersedes all prior negotiations and agreements whether written or verbal.
This Agreement may be amended only by written agreement and no purported verbal
amendment to this agreement shall be valid.


                                             CITY OF MUSKEGON


                                             By__________________________
                                               Ken Johnson, Its Mayor


                                             By__________________________
                                               Ann Marie Meisch, Its Clerk


                                     LAKESHORE CREATIVE SERVICES, LLC


                                             By___________________________
                                               Andy O’Riley, Owner




                                        26
                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023                                 Title: Transmittal of 6/30/22
                                                                          Annual Comprehensive
                                                                          Financial Report

Submitted By: Kenneth D. Grant                                            Department: Finance Director

Brief Summary: The City’s June 30, 2022 Annual Comprehensive Financial Report (ACFR) will be distributed
to the City Commissioners via email and hard copy. The ACFR will also be available on the City’s website.
The ACFR includes the annual independent auditor’s report as required by state law. At this time the ACFR
is being formally transmitted to the City Commission. The ACFR has been prepared in accordance with all
current Governmental Accounting Standards Board (GASB) pronouncements and also includes the single
audit of federal grants received by the City. CAFR2022.pdf (muskegon-mi.gov)

Detailed Summary & Background:


Goal/Focus Area/Action Item Addressed:

Amount Requested:                                       Amount Budgeted:

Fund(s) or Account(s):                                  Fund(s) or Account(s):

Recommended Motion: To accept the June 30, 2022 ACFR and authorize staff to transmit the
ACFR to appropriate Federal, State and private agencies.

Approvals: Get approval from division head at a minimum prior             Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head            Information Technology                 No
Other Division Heads               Communication                          Yes
Legal Review

For City Clerk Use Only:
Commission Action:




                                                   27
Annual Comprehensive
   Financial Report
  City of Muskegon
Fiscal Year Ended June 30, 2022




   28
29
                         CITY OF MUSKEGON,
                              MICHIGAN




                       ANNUAL COMPREHENSIVE
                         FINANCIAL REPORT
                        FOR THE YEAR ENDED
                            JUNE 30, 2022




                             Prepared By

                    FINANCIAL SERVICES DIVISION




Kenneth D. Grant                             Jason Boes
Finance Director                             Information Systems Director

Jessica Rabe                                 Hayden Nickell
Assistant Finance Director                   Management Assistant

Sarah Wilson
City Treasurer




                                 30
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                   31
                                                                     City of Muskegon

                                                                TABLE OF CONTENTS


INTRODUCTORY SECTION

Letter of Transmittal .................................................................................................................................. 5
Certificate of Achievement for Excellence in Financial Reporting......................................................... 11
Organization Chart .................................................................................................................................. 12
List of Principal Officials ........................................................................................................................ 13


FINANCIAL SECTION

Independent Auditor’s Report ................................................................................................................. 17
Management’s Discussion and Analysis ................................................................................................. 21
Basic Financial Statements
 Government-wide Financial Statements
   Statement of Net Position ................................................................................................................. 34
   Statement of Activities ...................................................................................................................... 36
 Fund Financial Statements
   Governmental Funds
      Balance Sheet ................................................................................................................................ 37
      Reconciliation of the Governmental Funds Balance Sheet
        to the Statement of Net Position ................................................................................................. 38
      Statement of Revenues, Expenditures and Changes
        in Fund Balances ........................................................................................................................ 39
      Reconciliation of the Governmental Funds Statement of Revenues,
        Expenditures and Changes in Fund Balances to the Statement of
        Activities .................................................................................................................................... 40
   Proprietary Funds
      Statement of Net Position .............................................................................................................. 41
      Statement of Revenues, Expenses and Changes in Net Position ................................................... 43
      Statement of Cash Flows ............................................................................................................... 44
   Fiduciary Funds
      Statement of Net Position .............................................................................................................. 45
      Statement of Changes in Net Position ........................................................................................... 46
 Discretely Presented Component Units
   Statement of Net Position ................................................................................................................. 47
   Statement of Activities ...................................................................................................................... 48
   Notes to Financial Statements .............................................................................................................. 49
Required Supplementary Information
 Budgetary Comparison Schedule—General Fund ............................................................................... 90
 Budgetary Comparison Schedule—Major Street and Trunkline Fund ................................................ 95
 Budgetary Comparison Schedule—Trinity Health Arena Fund .......................................................... 96
 Schedule of Changes in Net Pension Liability and Related Ratios ...................................................... 97
 Pension System Schedule of Contributions ......................................................................................... 98
 Retiree Healthcare System Schedule of Changes in the
  Net OPEB Liability and Related Ratios ............................................................................................. 99
 Retiree Healthcare System Schedule of Contributions ...................................................................... 100
 Retiree Healthcare System Schedule of Investment Returns ............................................................. 101


                                                                                   1
                                                                                  32
                                                                     City of Muskegon

                                                                TABLE OF CONTENTS


Other Supplemental Information
 Other Governmental Funds
   Description of Other Governmental Funds ..................................................................................... 104
   Combining Balance Sheet ............................................................................................................... 106
   Combining Statement of Revenues, Expenditures and Changes in
      Fund Balances (Deficits) ............................................................................................................. 107
   Other Special Revenue Funds
      Combining Balance Sheet............................................................................................................ 108
      Combining Statement of Revenues, Expenditures and Changes in
        Fund Balances .......................................................................................................................... 109
      Budgetary Comparison Schedule—Other Special Revenue Funds ............................................. 110
   Other Capital Projects Funds
      Combining Balance Sheet............................................................................................................ 113
      Combining Statement of Revenues, Expenditures and Changes in
        Fund Balances (Deficits) .......................................................................................................... 114
 Internal Service Funds
   Description of Internal Service Funds ............................................................................................ 115
   Combining Statement of Net Position ............................................................................................ 116
   Combining Statement of Revenues, Expenses and
      Changes in Fund Net Position ..................................................................................................... 117
   Combining Statement of Cash Flows.............................................................................................. 118
 Fiduciary Funds
   Description of Fiduciary Funds....................................................................................................... 119
   Custodial Funds
      Combining Statement of Net Position ......................................................................................... 120
      Combining Statement of Changes in Net Position ...................................................................... 121
 Discretely Presented Component Units
   Description of Discretely Presented Component Units .................................................................. 123
   Combining Balance Sheet ............................................................................................................... 124
   Reconciliation of the Governmental Funds Balance Sheet
      to the Statement of Net Position .................................................................................................. 125
   Combining Statement of Revenues, Expenditures and Changes
      in Fund Balances (Deficits) ......................................................................................................... 126
   Reconciliation of the Governmental Funds Statement of Revenues,
      Expenditures and Changes in Fund Balances (Deficits) to the Statement
      of Activities ................................................................................................................................. 127
 Schedule of Indebtedness ................................................................................................................... 129




                                                                                  2
                                                                                 33
                                                                   City of Muskegon

                                                              TABLE OF CONTENTS


STATISTICAL SECTION

Financial Trends
  Net Position by Component ............................................................................................................... 134
  Changes in Net Position ..................................................................................................................... 135
  Fund Balances of Governmental Funds ............................................................................................. 137
  Changes in Fund Balances of Governmental Funds .......................................................................... 138
Revenue Capacity
  Governmental Activities Revenues by Source ................................................................................... 139
  Taxable, Assessed and Equalized and Estimated Actual Valuation of Property................................ 140
  Principal Property Taxpayers ............................................................................................................. 141
  Property Tax Rates – Direct and Overlapping Government Units ..................................................... 142
  Property Tax Levies and Collections ................................................................................................. 143
  Total Income Tax Collected and Number of Returns Filed ............................................................... 144
Debt Capacity
  Ratio of Outstanding Debt by Type ................................................................................................... 146
  Direct and Overlapping Debt ............................................................................................................. 147
  Legal Debt Margin Information ......................................................................................................... 148
  Revenue Bond Coverage .................................................................................................................... 149
Demographic and Economic Information
  Demographic and Economic Statistics ............................................................................................... 150
  Principal Employers ........................................................................................................................... 151
Operation Information
  Full-time Equivalent Government Employees ................................................................................... 152
  Operating Indicators by Function/Program ........................................................................................ 153
  Capital Asset Statistics by Function/Program .................................................................................... 154

SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Independent Auditor’s Report on Internal Control over Financial
   Reporting and on Compliance and Other Matters Based on an
   Audit of Financial Statements Performed in Accordance with
   Government Auditing Standards .................................................................................................... 156
Independent Auditor’s Report on Compliance for Each Major
   Program and on Internal Control over Compliance Required by
   the Uniform Guidance .................................................................................................................... 158
Schedule of Expenditures of Federal Awards ..................................................................................... 161
Notes to Schedule of Expenditures of Federal Awards ....................................................................... 164
Schedule of Findings and Questioned Costs ....................................................................................... 165
Client Documents
   Summary Schedule of Prior Audit Findings ................................................................................... 168
   Corrective Action Plan ................................................................................................................... 169




                                                                                3
                                                                               34
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                    4
                   35
Affirmative Action
(231)724-6703
FAX (231)722-1214

Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129

Cemetery/Forestry
(231)724-6783
FAX (231)724-4188

City Manager
(231)724-6724
FAX (231)722-1214     December 21, 2022
Clerk
(231)724-6705
FAX (231)724-4178
                      To the Honorable Mayor, Members of the City Commission, and Citizens of the City of
Comm. & Neigh.
Services              Muskegon:
(231)724-6717
FAX (231)726-2501
                      State law requires that every general-purpose local government publish, within six
Computer Info.        months of the close of each fiscal year, a complete set of audited financial statements.
Technology
(231)724-4126         This report is published to fulfill that requirement for the fiscal year ended June 30,
FAX (231)722-4301     2022.
Engineering
(231)724-6707
FAX (231)727-6904     Management assumes full responsibility for the completeness and reliability of the
                      information contained in this report, based upon a comprehensive framework of internal
Finance
(231)724-6713         control that it has established for this purpose. Because the cost of internal control
FAX (231)726-2325     should not exceed anticipated benefits, the objective is to provide reasonable, rather
Fire Department       than absolute, assurance that the financial statements are free of any material
(231)724-6795
FAX (231)724-6985
                      misstatements.
Human Resources
Co. (Civil Service)   Brickley DeLong, PC, Certified Public Accountants, have issued an unmodified
(231)724-6442         (“clean”) opinion on the City of Muskegon’s financial statements for the year ended
FAX (231)724-6840
                      June 30, 2022. The independent auditor’s report is located at the front of the financial
Income Tax
(231)724-6770
                      section of this report.
FAX (231)724-6768

Mayor’s Office        Management’s discussion and analysis (MD&A) immediately follows the independent
(231)724-6701         auditor’s report and provides a narrative introduction, overview, and analysis of the
FAX (231)722-1214
                      basic financial statements. MD&A complements this letter of transmittal and should be
Planning/Zoning       read in conjunction with it.
(231)724-6702
FAX (231)724-6790

Police Department
(231)724-6750         Profile of the government
FAX (231)722-5140
                      The City of Muskegon operates under a commission-manager form of government and
Public Works
(231)724-4100         provides a full range of traditional municipal services. Policy-making and legislative
FAX (231)722-4188     authority are vested in the governing board (Commission) consisting of the mayor and
SafeBuilt             six commissioners. Two commissioners are elected at large and each of the four ward
(Inspections)
(231)724-6715
                      commissioners is elected by the voters of their respective wards. Commission
FAX (231)728-4371     members serve four-year terms, with the two at large members elected every four years
Treasurer             in odd years and the four ward commissioners elected every four years in even years.
(231)724-6720         The Mayor is also elected at-large for a four-year term. The Mayor and Commission
FAX (231)724-6768
                      appoint the City of Muskegon’s manager.
Water Billing
(231)724-6718
FAX (231)724-6768

Water Filtration
(231)724-4106
FAX (231)755-5290                                            5
                                                            36
The City of Muskegon provides a full range of services, including police and fire protection; solid
waste collection; parks and recreation activities; the construction and maintenance of streets
and roadways; street snowplowing; traffic control; building inspections; licenses and permits;
water distribution and sewer disposal services; community and economic development; and
general administrative support services. The City also provides treated drinking water to its
residents and several surrounding communities.

The Commission is required to adopt an initial budget for the fiscal year no later than the last
regular meeting in June preceding the beginning of the fiscal year on July 1. This annual budget
serves as the foundation for the City of Muskegon’s financial planning and control. The budget
is prepared by fund, function (e.g., public safety), and department (e.g., police). The City
Manager and department heads may transfer resources within a department as they see fit.
Transfers between departments, however, need special approval from the Commission.


Local economy
The City of Muskegon is located in western Michigan on the shores of Lake Michigan. The City
covers 18 square miles (including 4 miles of water) and, with a 2020 US Census population of
37,552 is the largest city on the eastern shore of Lake Michigan. The City is located in Muskegon
County and is part of the Muskegon-Norton Shores Metropolitan Statistical Area (MSA), and the
larger Grand Rapids-Wyoming-Muskegon Combined Statistical Area (CSA).
Muskegon is home to many outstanding sports, recreation, and cultural activities:
      Muskegon has been the eastern terminus for the high-speed cross-lake ferry connecting
       Muskegon with Milwaukee, Wisconsin since 2004. The Lake Express service ferries
       100,000-plus passengers each season between the two cities.
      Muskegon has been home to the annual Miss Michigan pageant since 1950.
      Pere Marquette beach is nationally recognized as one of the best beaches in the nation
       and welcomes hundreds of thousands of visitors.
      Muskegon is home to successful summertime festivals that attract more than 100,000
       visitors to the community annually. These include Taste of Muskegon, the Discover
       Muskegon Festival, Bike Time and Rebel Road, the Unity Christian Music Festival, the
       Shoreline Jazz Festival, the Great Lakes Surf Festival, the Burning Foot Beer Festival,
       the Muskegon Polish Festival, and the Michigan Irish Music Festival.




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      Muskegon is the cultural hub for west Michigan with numerous museums and live
       performance venues: The Muskegon Museum of Art has one of the largest premier art
       collections in the Midwest, while the Lakeshore Museum Center provides insight into the
       area’s storied past. The Lakeshore Museum Center’s attractions include the Muskegon
       Heritage Museum, the former residences of lumber barons Charles H. Hackley and
       Thomas Hume, the Fire Barn Museum, and the Scolnik Depression Era House.
       Frauenthal Center for the Performing Arts operates throughout the year, hosting the West
       Michigan Symphony Orchestra and the Muskegon Civic Theater.
      Muskegon’s downtown is home to dozens of monumental public art pieces, with new
       pieces acquired each year. In 2022, “One Drop,” a 27-foot sculpture of a single drop of
       water, by Georgia artist Marc Moulton, was added to the public art collection outside the
       City’s VanDyke Mortgage Convention Center along Shoreline Drive.
      Muskegon is home to three historic museum ships that attract thousands of visitors each
       year:
          USS Silversides, a rare surviving World War II submarine maintained in pristine
           condition is docked at the Muskegon Lake Channel;
          LST-393, a landing craft used in the D-day invasion and one of only two such vessels
           remaining in existence is docked downtown Muskegon at the West Michigan Dock
           and Market; and the
          Milwaukee Clipper, a Great Lakes passenger ship built before the Titanic that for many
           years served as a cross-lake ferry between Muskegon and Milwaukee is docked in
           the Lakeside Business District.

Muskegon has a diverse local economy. The manufacturing sector is strong in the areas of
aerospace, plastics, defense, metals and castings, office furniture, recreational items, and
automotive parts. The City of Muskegon also benefits from being home to large government,
healthcare, and educational employers. While many of these institutions are exempt from paying
property taxes, local income tax withholdings remitted by these employers provide stability to
City finances.

The local economy has experienced some significant adjustments to the COVID-19 pandemic.
However, headed into the pandemic, all local indicators pointed to a strong economy – with both
corporate profits and income tax withholdings significantly higher than in previous years.

The City fully recognizes the difficulties it faces as an older urban community. Thus, we have
attempted to position ourselves as a leader in fiscal stability and sustainability, while making key
investments in areas that grow the city’s financial resources over the long term.




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Long-term financial planning and major initiatives
The unassigned fund balance in the General Fund at year-end was 24.1% of total actual General
Fund revenues for the preceding year. This amount was well above the policy guidelines set by
the Commission for budgetary and planning purposes (i.e., 13% of total actual General Fund
revenue for the preceding year). 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.

The City incorporates a five-year fiscal forecast into its yearly budget process. The forecast is
a macro-level projection of major revenue sources, expenses, and fund balances while
accounting for identifiable factors, recent trends, and management’s judgment as to future
developments.

Among the City's major initiatives and accomplishments in the fiscal year 2021-22 were the
following:
      Downtown Muskegon’s Leonard Building, a five-story mixed-use building, began
       welcoming tenants in 2022; Samaritas opened a 50+ unit senior affordable apartment
       building; Terrace Street was reconstructed and turned into a traditional two-lane road from
       a large boulevard allowing for better connections between the core of downtown and
       businesses east of Terrace Street, including the Pine Street commercial corridor.
      Staff is nearing completion of an agreement to allow the City to acquire an old railroad
       line through the Nims and Lakeside neighborhoods. The acquisition will allow for the
       development of Windward Point in Lakeside and the conversion of much of the corridor
       into pedestrian and commuter bike trails.
      In 2019 the City started an ambitious infill housing program to provide new housing stock
       across the community. In 2022 the program constructed new homes in the Jackson Hill,
       Angell, McLaughlin, Nelson, and Campbell Field neighborhoods. Since the program’s
       inception, the City has completed or initiated the construction of more than 125 homes. A
       portion of homes are available for rent or purchase to individuals and families at 120% or
       less of the Area Median Income (AMI).
      Progress continues to move forward on the Adelaide Point (which now includes the former
       Hartshorn Marina Village Development) and Viridian Shores Developments. These two
       waterfront developments will feature more than $200 million in investments and create
       hundreds of new housing opportunities in the City.
      Parkland Properties announced in December 2022 it would be purchasing and
       redeveloping the former Shaw Walker property into a mix-use development.
      In 2022, the City approved site plans for the Lakeside Dunes development at the
       Muskegon Country Club. Phase one is underway and will see 34 single-family semi-
       custom club homes built and designed by David C. Bos Homes.

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                                               39
Relevant financial policies
The City of Muskegon has adopted a comprehensive set of financial policies used to ensure
adequate protection of the City’s assets from loss, theft, or misuse, and provide adequate
accounting data to allow for the preparation of financial statements in conformity with generally
accepted accounting principles.

Budgetary control is maintained through an annual budget resolution passed by the City
Commission. Budgetary control at the functional level is maintained by review of estimated
expenditures prior to making purchases. Encumbrances are not recorded in the City’s funds.
The City does, however, utilize an informal monitoring system to facilitate budgetary control over
proposed purchases. Essentially, this system entails the use of on-line budgetary information
that details year-to-date “actual versus budgeted” expenditure comparisons by budget category.
This information is accessible to appropriate personnel to enable them to ascertain the budget
status of an expenditure category prior to authorizing additional purchases.


Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Muskegon for its annual comprehensive financial report (ACFR) for the fiscal year ended June
30, 2020. This was the 34th consecutive year that the City has received this award. The City
has submitted the June 30, 2021 ACFR for consideration but has not received award
confirmation at this time. In order to be awarded a Certificate of Achievement, a government
must publish an easily readable and efficiently organized ACFR that satisfies both generally
accepted accounting principles and applicable program requirements.

A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one
year only. However, we believe our current ACFR continues to meet the Certificate of
Achievement for Excellence in Financial Reporting Program’s requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.




                                                9
                                               40
The preparation of this report would not have been possible without the skill, effort, and
dedication of the Finance Division and the entire city staff. We express appreciation to those
staff members who assisted and contributed to the preparation of this report. Credit also must
be given to the Mayor and Commissioners for their support in maintaining the highest standards
of professionalism in the management of the City of Muskegon’s finances.


Respectfully submitted,



Jonathan C. Seyferth                          Kenneth D. Grant
City Manager                                  Finance Director




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11
42
                                      Organizational Structure 2021-22
                                                          Mayor and City Commission

                                                     City Manager                                                                     External Auditors
                                                                                                                                         City Attorney
                                                                                                                                    Planning Commission
                                    Finance and                    Public Works
        Public Safety                                                                         Development Services                Zoning Board of Appeals
                                Administrative Services                                                                        Historic District Commission
                                                                                                                             Housing Code Board of Appeals
                                                                                                                                       Board of Review
                                 Finance Administration                                                                        Income Tax Board of Review
                                  Treasury/Income Tax                                              Community                      Civil Service Commission
                                         City Clerk               Streets/Highways                Development                              DDA/BRA
           Police                 Information Systems                  Utilities              Neighborhood Services                          LDFA
            Fire                     Public Relations           Parks and Recreation             Planning/Zoning                           BID Board
12




     Code Enforcement                    Elections              Cemeteries Sanitation         Economic Development           Equal Opportunities Committee
                                    Risk Management                  Streetlights               Strategic Planning             Local Officers Compensation
                                   Employee Relations                                             Special Events                          Committee
                                     Farmers Market                                                                            Citizen's Police Review Board
                                                                                                                                    CDBG District Council
                                                                                                                                    Election Commission
       Environmental Code                                                                                                     Construction Board of Appeals
            (SAFEbuilt)          Human Resources (County)          Consumers Energy
      Inspections (SAFEbuilt)       Assessing (County)           Republic Waste Services         Muskegon Area First                Housing Commission
     Prosecutions (Parmenter    LC Walker Arena (Two T's LLC)      County Wastewater
             O'Toole)



                                                                       Elected Officials

                                   Independent Bodies                   Municipal Executive                 Division Heads

                                                                            Frontline Staff                   Contractual




                                                                                43
                      ANNUAL COMPREHENSIVE FINANCIAL REPORT
                           CITY OF MUSKEGON, MICHIGAN
                            LIST OF PRINCIPAL OFFICIALS

                                                 June 30, 2022




                                           ELECTED OFFICIALS


Mayor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ken Johnson
At Large

Vice Mayor-Commissioner. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .Willie German
Ward 2

Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Eric Hood
Ward 1

Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Michael Ramsey
Ward 3

Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Teresa Emory
Ward 4

Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rachel Gorman
At Large

Commissioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rebecca St. Clair
At Large

                                         APPOINTED OFFICIALS




City Manager. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jonathan Seyferth

City Attorney. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John C. Schrier

Finance Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kenneth D. Grant




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                   14
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FINANCIAL SECTION




       15
       46
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                   16
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                                   INDEPENDENT AUDITOR’S REPORT



City Commission
City of Muskegon
Muskegon, Michigan


Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Muskegon, Michigan, as of and for the year ended June 30, 2022, and the related notes
to the financial statements, which collectively comprise the City of Muskegon, Michigan’s basic financial
statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Muskegon,
Michigan, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United States
of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to
be independent of the City of Muskegon, Michigan, and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinions.

Change in Accounting Principle
As discussed in Note O to the financial statements, in the year ended June 30, 2022 the City adopted new
accounting guidance, GASB Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.




                               Grand Haven | Grand Rapids | Hart | Muskegon

                                               www.brickleydelong.com
                                                         17
                                                        48
BRICKLEY DELONG


City Commission
City of Muskegon
Page 2


Responsibilities of Management for the Financial Statements–Continued
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of Muskegon, Michigan’s ability to
continue as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgement made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
       Exercise professional judgment and maintain professional skepticism throughout the audit.
       Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
        error, and design and perform audit procedures responsive to those risks. Such procedures include
        examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
       Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
        are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
        of the City of Muskegon, Michigan’s internal control. Accordingly, no such opinion is expressed.
       Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
        estimates made by management, as well as evaluate the overall presentation of the financial statements.
       Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise
        substantial doubt about the City of Muskegon, Michigan’s ability to continue as a going concern for a
        reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.




                                                         18
                                                         49
BRICKLEY DELONG


City Commission
City of Muskegon
Page 3


Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information, and pension and other post-employment benefit
information be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise City of Muskegon, Michigan’s basic financial statements. The accompanying combining and individual
nonmajor fund financial statements, budgetary comparison information for nonmajor funds, schedule of
indebtedness, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison
information for nonmajor funds, schedule of indebtedness, and the schedule of expenditures of federal awards are
fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and
we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are required
to describe it in our report.




Muskegon, Michigan
December 21, 2022


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                                                        50
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                   51
2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 

This section of the City of Muskegon’s annual financial report presents our discussion and analysis of the 
City’s financial performance during the fiscal year ended June 30, 2022.  Please read it in conjunction 
with the City’s financial statements, which follow this section.   

FINANCIAL HIGHLIGHTS 

The assets/deferred outflows of resources of the City of Muskegon exceeded its liabilities/deferred 
inflows of resources by $114,024,323 as of June 30, 2022.  The City has a deficit in unrestricted net 
position of $22,513,368.  The deficit in unrestricted net position is caused by the City’s pension and 
other postemployment benefits plans liabilities. 

The City’s total combined net position increased by $11,679,948 during the year ended June 30, 2022. 

The City’s governmental funds reported combined ending fund balance of $19,965,055, an increase of 
$3,672,527(23%) from the prior year.   

The City’s General Fund reported a total fund balance of $10,861,373, a decrease of $336,467 from the 
prior year balance of $11,197,840.   

OVERVIEW OF THE FINANCIAL STATEMENTS 

This annual report consists of three parts ‐ management’s discussion and analysis (this section), the 
basic financial statements, and required supplementary information.  The basic financial statements 
include two kinds of statements that present different views of the City. 

   The first two statements are government‐wide financial 
    statements that provide both long‐term and short‐term 
    information about the City’s overall financial status. 

   The remaining statements are fund financial statements 
    that focus on individual parts of the government, reporting 
    individual City operations in greater detail than the government‐
    wide statements. 

   The governmental funds statements tell how general 
    government services were financed in the short‐term as 
    well as what remains available for future spending. 

   Proprietary fund statements offer short‐ and long‐term 
    financial information about activities the City operates like 
    private businesses. 

   Fiduciary fund statements provide information about the 
    financial relationships in which the City acts solely as a trustee or agent 
    for the benefit of others, to whom the resources in question belong. 




                                                     21
                                                     52
The financial statements also include detailed notes that explain some of the information in the financial 
statements and provide additional data. The statements are followed by a section of required 
supplementary information that further explains and supports the information in the financial 
statements.  The figure above shows how the required parts of this annual report are arranged and 
related to one another.  

The remainder of this overview section of management’s discussion and analysis explains the structure 
and contents of each of the statements. 

Government‐Wide Statements 

The government‐wide statements report information about the City as a whole using accounting 
methods similar to those used by private‐sector companies.  The statement of net position includes all 
of the government’s assets/deferred outflows of resources and liabilities/deferred inflows of resources.  
All of the current year’s revenues and expenses are accounted for in the statement of activities 
regardless of when cash is received or paid. 

The two government‐wide statements report the City’s net position and how they have changed. Net 
position—the difference between the City’s assets/deferred outflows of resources and 
liabilities/deferred inflow of resources—is one way to measure the City’s overall financial health or 
position.  Over time, increases or decreases in the City’s net position are an indicator of whether its 
financial health is improving or deteriorating, respectively.  However, to assess the overall health of the 
City, one needs to consider additional nonfinancial factors such as changes in the City’s tax base. 

The government‐wide financial statements include not only the City of Muskegon itself (known as the 
primary government), but also legally separate component units for which the City is financially 
accountable.  Financial information for these component units is reported separately from the financial 
information presented for the primary government itself. 

The government‐wide financial statements of the City include the governmental activities.  Most of the 
City’s basic services are included here, such as public representation services, administrative services, 
financial services, public safety, public works, highways, streets and bridges, community and economic 
development, culture and recreation, general administration, and interest on long‐term debt.  Income 
taxes, federal grants, property taxes and revenues from the State of Michigan finance most of these 
activities.   

Also included in the government‐wide statements are the City’s business‐type activities: water, sewer 
and marina operations.




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                                                     53
Fund Financial Statements 

The fund financial statements provide more detailed information about the City’s major funds—not the 
City as a whole.  Funds are accounting devices that the City uses to keep track of specific sources of 
funding and spending for particular purposes. 

The City has the following kinds of funds: 

    Governmental funds—Most of the City’s basic services are included in governmental funds, which 
     focus on (1) how cash and other financial assets that can readily be converted to cash flow in and 
     out and (2) the balances left at year‐end that are available for spending.  Consequently, the 
     governmental fund statements provide a detailed short‐term view that helps the user determine 
     whether there are more or fewer financial resources that can be spent in the near future to finance 
     the City’s programs.  Because this information does not encompass the additional long‐term focus 
     of the government‐wide statements, we provide additional information on the subsequent page of 
     the governmental funds statements that explain the relationship (or differences) between them. 

    Proprietary funds—Services for which the City charges customers a fee and are intended to be self‐
     supporting are generally reported in proprietary funds.  The City uses three proprietary funds: 
     water, sewer, and marina and launch ramp.  Proprietary funds, like the government‐wide 
     statements, provide both long‐term and short‐term financial information. 

    The City uses internal service funds to report activities that provide supplies and services for the 
     City’s other programs and activities. 

    Fiduciary funds—The City is the trustee, or fiduciary, for certain funds.  It is also responsible for 
     other assets that—because of a trust arrangement—can be used only for the trust beneficiaries.  
     The City is responsible for ensuring that the assets reported in these funds are used for their 
     intended purposes.  All of the City’s fiduciary activities are reported in a separate statement of net 
     position and a statement of changes in net position.  We exclude these activities from the City’s 
     government‐wide financial statements because the City cannot use these assets to finance its 
     operations. 

    Component units – Finally, the City of Muskegon’s Comprehensive Annual Financial report includes 
     four component units: The Downtown Development Authority (DDA), the Tax Increment Finance 
     Authority (TIFA), the Local Development Finance Authority (LDFA) and, the Brownfield 
     Redevelopment Authority (BRA), which is comprised of six designated brownfield areas.  
     Component units are separate legal entities for which the City of Muskegon has some level of 
     financial accountability.  The component units of the City exist primarily for the issuance and 
     repayment of debt to finance projects in specific areas of the City.  Accordingly, they are discussed 
     below under the Capital Assets and Debt Administration heading.




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                                                     54
FINANCIAL ANALYSIS OF THE CITY AS A WHOLE 

Net position.  The Statement of Net Position provides an overview of the City’s assets/deferred outflows 
of resources, liabilities/deferred inflow of resources and net position.  Over time this can provide a good 
indicator of the City’s fiscal health.  

The total net position of the City was $114,024,323 as of June 30, 2022.  This is an increase of 
$11,679,948 from reported net position for the prior year.  An overview of the City’s net position 
follows: 
                                                           City's Net Position
                                                        (In Thousands of Dollars)
                                                             Governmental                Business-Type
                                                                Activities                  Activities                    Total           Percentage
                                                         6/30/2022 6/30/2021         6/30/2022 6/30/2021       6/30/2022 6/30/2021         Change


Current and other assets                                   $53,203     $40,446         $6,947      $8,568       $60,150      $49,014          22.72%
Capital assets                                             105,605     102,697         69,088      63,314       174,693      166,011           5.23%
Total Assets                                               158,808     143,143         76,035      71,882       234,843      215,025           9.22%
Deferred outflow s of resources                              2,692           2,006        187            139      2,879           2,145      34.22%
Total Assets and Deferred Outflow s of Resources           161,500     145,149         76,222      72,021       237,722      217,170           9.46%


Long-term liabilities                                       62,472       71,213        15,516      10,793        77,988       82,006          -4.90%
Current liabilities                                         23,700       22,650         3,225       6,804        26,925       29,454          -8.59%
Total Liabilities                                           86,172       93,863        18,741      17,597       104,913      111,460          -5.87%
Deferred inflow s of resources                              17,219           3,147      1,564            219     18,783           3,366     458.02%
Total Liabilities and Deferred Outflow s of Resources      103,391       97,010        20,305      17,816       123,696      114,826           7.72%


Net Position                                                                                                          `
    Net investment in capital assets                        75,202       72,201        54,669      54,257       129,871      126,458           2.70%
    Restricted                                               5,845           5,003        822            822      6,667           5,825       14.45%
    Unrestricted                                           -22,938      -29,065           425        -874       -22,513       -29,939        -24.80%
Total Net Position                                         $58,109     $48,139        $55,916    $54,205       $114,025     $102,344         11.41%
                                                                                                                                                        
The bulk of the City’s net position $129,870,436 represents investments in capital assets net of 
accumulated depreciation, less the remaining balance of debt issued to acquire those assets.  These 
infrastructure assets are used to provide public services to citizens and are not available for spending.   

Another $6,667,255 of the City’s net position are legally restricted as to use. The City has a deficit in 
unrestricted net position of $22,513,368.  The deficit in unrestricted net position is caused by the City’s 
long‐term pension and other postemployment benefits plans liabilities.  The City’s unrestricted net 
position improved $7,425,502 during the year. 

 




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                                                                  55
Changes in net position. The City’s total revenues were $80,880,919 for the year ended June 30, 2022.  
This represents a 4.12% increase over total revenues collected during the prior fiscal year.  
Approximately 37.9% of the City’s revenue stream came from charges to users of specific services such 
as water or sewer.  Another 13.7% came from grants from the state and federal governments and 23.7% 
was from local property and income taxes.  The remainder was comprised of state revenue sharing and 
other sources such as franchise fees and investment income. 

The total cost of all City programs and services for the year ended June 30, 2022 was $69,200,971.  This 
represents a 6.7% increase from reported expenses for the last fiscal year ended June 30, 2021.  74.2% 
of the City’s expenses were for governmental activities such as police and fire protection, streets, parks, 
and general administration.  The remaining 25.8% represents the costs of the City’s business‐type 
activities, specifically, water, sewer and marina operations. 

The table on the following page (Changes in City’s Net Position) further breaks down the change in total 
net position into period‐to‐period changes in individual revenue and expense categories. 

As can be seen, net position for governmental activities increased $9,969,730 and the net position for 
business‐type activities increased by $1,710,218.  For governmental activities, most of these changes are 
related to the changes in the pension and other postemployment benefits plans. For business‐type 
activities, the changes similarly represent the impact of the changes in the pension and other 
postemployment benefits plans. 




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                                                    56
                                          Changes in City’s Net Position
                                            (In thousands of dollars)
                                                   Governmental             Business-Type
                                                     Activities                Activities                     Total           Percentage
                                              6/30/2022 6/30/2021       6/30/2022 6/30/2021       6/30/2022 6/30/2021          Change


Program revenues


    Charges for services                       $11,148       $7,951        $19,495   $18,229       $30,643       $26,180          17.05%
    Operating grants and contributions           11,024       9,839              -            -     11,024            9,839       12.04%
    Capital grants and contributions              2,815       2,901           103      10,354        2,918        13,255         -77.99%
General revenues
    Property taxes                                9,182       8,813              -            -      9,182            8,813        4.19%
    Income taxes                                 10,020       9,609              -            -     10,020            9,609        4.28%
    State shared revenues                        15,303       6,427              -            -     15,303            6,427     138.10%
    All other                                     1,802       3,580            24           10       1,826            3,590      -49.14%
Total revenues                                   61,294      49,120         19,622     28,593       80,916        77,713           4.12%


Governmental activities expenses
    Public representation                         1,715       1,604              -            -      1,715            1,604        6.92%
    Administrative services                         914           826            -            -        914             826       10.65%
    Financial services                            5,473       5,040              -            -      5,473            5,040        8.59%
    Public safety                                13,387      18,249              -            -     13,387        18,249         -26.64%
    Public w orks                                 4,688       4,026              -            -      4,688            4,026      16.44%
    Highw ays, streets and bridges                7,309       6,863              -            -      7,309            6,863        6.50%
    Community and economic development            9,857       5,000              -            -      9,857            5,000       97.14%
    Culture and recreation                        6,589       4,507              -            -      6,589            4,507       46.19%
    General administration                          511           404            -            -        511             404       26.49%
    Interest on long-term debt                      881       1112               -            -        881            1,112      -20.77%
Business-type activities expenses
    Sew er                                             -            -        8,154      8,085        8,154            8,085        0.85%
    Water                                              -            -        9,261      8,612        9,261            8,612        7.54%
    Marina and launch ramp                             -            -         461           515        461             515       -10.49%
Total expenses                                   51,324      47,631         17,876     17,212       69,200        64,843           6.72%


Change in net position before transfers           9,970       1,489          1,746     11,381       11,716        12,870          -8.97%

Transfers                                              -            -         (35)          35         (35)             35              -
Change in net position                            9,970       1,489          1,711     11,416       11,681        12,905          -9.48%


Net position at beginning of year                48,138      46,650         54,205     42,789      102,343        89,439         14.43%

Net position at end of year                    $58,108      $48,139        $55,916   $54,205      $114,024      $102,344         11.41%

                                                                                                                                             
 




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Governmental Activities 

The following table (Net Cost of Selected City Functions) presents the cost of each of the City’s largest 
functions as well as each function’s net cost (total cost less fees generated by the activities and 
intergovernmental aid specifically related to the function).  The net cost reflects the portion of costs 
funded by local tax dollars and other general resources: 

    The operational cost of all governmental activities during the year ended June 30, 2022 was 
     $51,324,518. 
    The net cost that City taxpayers paid for these activities through local property taxes and income 
     taxes was $19,202,554, or about 37% of the total.   
    The remaining cost was paid by user charges to those directly benefitting from the programs or by 
     state and federal grants and contributions or use of net position. 

                                      Net Cost of Selected City Functions
                                             (in thousands of dollars)


                                      Total Cost of Services                      Net Cost of Services
                                      6/30/2022    6/30/2021     % Change        6/30/2022    6/30/2021    % Change
Governmental activities
 Public safety                          $13,387      $18,249        -26.64%        $10,703      $14,257      -24.93%
 Public w orks                             4,688        4,026       16.44%            3,831        3,131     22.36%
 Highw ays, streets and bridges            7,309        6,863            6.50%          672         864      -22.22%
 Community and economic development        9,857        5,000       97.14%            6,329         (78)   -8214.10%
 Culture and recreation                    6,589        4,507       46.19%           -2,430        2,102    -215.60%
 All other                                 9,494        8,986        5.65%            7,233        6,664      8.54%
Total governmental activities           $51,324      $47,631         7.75%         $26,338      $26,940       -2.23%
                                                                                                                        
Business‐Type Activities 

The financial goal of the City’s business‐type activities (i.e. water, sewer and marina and launch ramp 
operations) is to operate on a self‐supporting basis without making significant profit or needing general 
tax subsidies.  For the fiscal year ended June 30, 2022, the City’s total business‐type activities realized an 
overall increase in net position of $1,710,218.   

Sewer Fund net position increased $2,086,272 primarily from the result of adjustments to utility rates.  
The Water Fund saw a net position decrease of $323,415.  Marina and Launch Ramp Fund net position 
decreased $171,475. 




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                                                         58
FINANCIAL ANALYSIS OF THE CITY’S FUNDS 
The fund financial statements provide detailed information about the major City funds, not the City as a 
whole.  The City’s major funds for the fiscal year ended June 30, 2022 were the General Fund, the Major 
Street and Trunkline Fund, and the State Grants Fund. 
General Fund Highlights 
The General Fund receives most public attention since it is where local tax revenues are accounted for 
and where the most visible municipal services such as police, fire and parks are funded.  The City 
reforecasts its General Fund budget on a quarterly basis considering changing economic conditions and 
policy priorities.  The following table shows the General Fund year‐end unassigned fund balance for the 
last five years. 

                                                                       Unassigned Fund
                   Year-End
                                 Year‐to‐Year %    Prior Year’s        Balance as a % of
    Year Ended    Unassigned
                                    Change          Revenues          Prior Year Revenues
                 Fund Balance
                                                                      (Policy Target=13%)

     6/30/2022      $7,981,674      -12.50%           $33,056,483           24.15%
     6/30/2021       9,121,955      54.06%               29,653,448         30.76%
     6/30/2020       5,920,869       -9.79%              28,747,772         20.60%
     6/30/2019       6,563,511       1.46%               28,729,919         22.85%
     6/30/2018       6,469,108       5.22%               27,051,766         23.91%
                                                                                             
For the year ended June 30, 2022, General Fund revenues were $326,085 higher than the final amended 
budget estimate due to higher than anticipated income taxes and revenue sharing. 
General Fund expenditures were $42,712 lower than projected in the final amended budget.  
Major Street and Trunkline and State Grant Fund Highlights 
The Major Street and Trunkline Fund accounts for all of the City’s street construction and maintenance 
activities on its primary road system.  Primary funding comes from the State of Michigan.  For the year 
ended June 30, 2022, the fund balance of the Major Street and Trunkline Fund increased $1,112,193. 
The State Grants Fund received $11,440,947 in funding from the American Rescue Plan Act (ARPA) 
which will be expended over the next few years. 
 
 
 
 
 
 
 
 
 
 

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                                                    59
CAPITAL ASSETS AND DEBT ADMINISTRATION 
Capital Assets 
As of June 30, 2022, the City had invested $174,692,339 in a variety of capital assets, including land, 
streets, equipment, buildings, water and sewer lines, and vehicles.  This is an increase of $8,681,233 
from capital assets reported as of June 30, 2021.  The increase is due to current year additions offset by 
normal depreciation of assets.  Note G of the notes to the 
basic financial statements provides detailed information on 
                                                                                     Bond Ratings 
the City’s capital asset investment.   
Long‐Term Debt                                                                       The City’s limited full faith and credit bonds 
                                                                                     (bonds guaranteed by the City’s taxing 
At June 30, 2022, the City had $47,507,897 in bonds and other                        powers) were upgraded by Standard & 
long‐term obligations outstanding.  This represents a 12.8%                          Poor’s from a rating of “A+” to “AA‐“ in 
increase from the prior year.  The City issued new debt for a                        early 2016. The City’s rating remained at 
fire truck and water and sewer improvements. 
                                                                                     “AA‐“ in 2022. 
Additional information concerning the City’s long‐term debt is 
presented in Note J to the basic financial statements. 



                                       City’s Long Term Debt – Bonds and Other Obligations
                                                         (In thousands of dollars)

                                         Governmental                     Business-Type
                                            Activities                      Activities                           Total            Percentage
                                    6/30/2022   6/30/2021          6/30/2022     6/30/2021        6/30/2022       6/30/2021        Change
 Due within one year                  $1,720       $1,526              $1,359        $1,312             $3,079           $2,838       8.49%

 Due in more than one year            31,094       31,257              13,335         8,015             44,429           39,272      13.13%

 Total bonds & other obligations     $32,814      $32,783             $14,694        $9,327            $47,508      $42,110          12.82%

In addition to direct City debt, component units such as the Downtown Development Authority (DDA) 
and Local Development Finance Authority (LDFA) had outstanding debt totaling $1,096,547 at year‐end 
as shown in the table below.  This represents a decrease of 18.9% from the prior year.   
Debt issued by component units typically is secured by the limited full faith and credit of the City and so 
is an important consideration in assessing the City’s overall fiscal health.  Additional information 
concerning component units’ long‐term debt is presented in Note J to the basic financial statements and 
is summarized as follows: 


                                   Component Unit Long Term Debt – Bonds and Other Obligations
                                                         (In thousands of dollars)

                                                            Local Development
                                                                                                       Total                      Percentage
                                                             Finance Authority
                                                         6/30/2022     6/30/2021          6/30/2022            6/30/2021             Change
 Due within one year                                          $255         $245                $255                 $245              4.08%
 Due in more than one year                                      842        1,107                842                1,107            -23.94%
 Total bonds & other obligations                             $1,097       $1,352              $1,097              $1,652
                                                                                                                                    -18.86%



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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES 
The City’s fiscal year 2022‐23 capital budget anticipates spending $20,841,772 for capital projects, 
consisting of street improvements, water and sewer system improvements, scheduled equipment 
replacements, the rehab of houses in a city neighborhood and the replacement of fire department 
rescue equipment.    

From an operating standpoint, the City’s 2022‐23 budget will be relatively stable while the City attempts 
to maintain a healthy fund balance and allow time to plan for and address economic challenges with a 
long‐term solution: 

       The full‐time personnel complement will increase slightly to approximately 260.5. 
       Some user fees will be increased and new fees recommended during the course of the year. 
       The City will continue to look for opportunities to partner with other entities to deliver quality 
        services in a cost‐effective manner (e.g. Farmers’ Market kitchen management, Marsh Field and 
        recreation programs). 

City operations depend on five major sources of revenue: local income taxes, local property taxes, state‐
shared revenues, state street funds, and water and sewer utility fees.  Together, these five income 
sources account for about three‐quarters of total revenues.   

Local Income Tax 
The City income tax was approved by voters in 1993 and is the primary source of funding for police, fire, 
parks and other general operations.  The income tax rate is 1% on City residents and ½ of 1% on non‐
residents working in the City. The income tax provides key advantages for core cities such as Muskegon.   

First, it allows the City to regionalize its tax structure by taxing non‐residents who work here and use 
City services. Second, it allows the City to benefit from development occurring outside City limits 
because City residents employed by non‐City employers pay income taxes.   

Finally, the income tax generates revenue from workers at not‐for‐profit hospitals, churches, 
government agencies, colleges and other institutions that are traditionally exempt from paying local 
property taxes. This is particularly important for Muskegon since it is the regional center for many such 
institutions.  

Income tax revenues increased 8.1% from $9,256,826 for the year ended June 30, 2021 to $10,002,623 
for the year ended June 30, 2022.  For 2022‐23, the City has estimated income tax revenue to be 
$10,250,000.  
 

                             Year         City Income Tax Revenues     Percent Change
                          6/30/2022                        $10,002,623      8.1%
                          6/30/2021                         $9,256,826      1.3%
                          6/30/2020                         $9,137,714        5.1%
                          6/30/2019                         $8,691,673       -0.8%
                          6/30/2018                         $8,758,674       1.7%
                                                                                          




                                                       30
                                                       61
Local Property Tax 
City charter and state law authorize the City to levy a general operating millage up to 10 mills and a 
maximum sanitation millage of 3 mills.  Millage rates are applied to the taxable value of property in the 
City to arrive at the City’s property tax levy.   

For 2022‐23, the City tax levy will be at 9.7880 mills for general operations and 2.9364 mills for 
sanitation service.  We project that $8,150,000 in total property tax revenue will be collected during 
fiscal year 2022‐23. 

It should be noted that several property tax appeals are currently pending.  The impact of these appeals 
on City finances is being monitored closely.   

State Shared Revenues 
State shared sales tax revenues represent about 13% of total General Fund revenue.  The City’s state 
shared revenue allocation is made up of two parts.  The constitutional component is a fixed percentage 
of total state sales tax collections that is allocated to cities on a per capita basis and that cannot be 
reduced by the legislature.  The non‐constitutional component is determined by a complex formula and 
is subject to adjustment through the State’s annual budget process.  Both components depend, of 
course, on overall state sales tax collections.  The City’s recent state shared revenue history is 
summarized as follows: 

                       Year        State Shared Revenues            Percent Change

                     6/30/2022                  $5,087,587              7.5%
                     6/30/2021                  $4,733,888              14.9%
                     6/30/2020                  $4,117,935              -3.6%
                     6/30/2019                  $4,271,438              2.8%
                     6/30/2018                  $4,153,072              2.8%
                                                                                         
For 2022‐23, the City projects $5,063,948 in state shared revenues.  

Street Funds 
The State also returns to the City a share of gasoline tax revenues to help fund maintenance and 
construction of major and local streets within the City.  These revenues have been more stable than 
general state sales tax state‐shared revenues have been: 

                                                        

                                             Street Revenues from    Percent
                                   Year              State           Change

                                 6/30/2022             $6,271,210      5.2%
                                 6/30/2021             $5,961,524      9.4%
                                 6/30/2020             $5,450,220      6.2%
                                 6/30/2019             $5,134,277     1.4%
                                 6/30/2018             $5,060,936     25.9%



                                                      31
                                                      62
Based on recent legislative changes, the City began seeing increases in street funding that will carry into 
future years. At this time, the City is projecting street revenues for fiscal year 2022‐23 of $5,791,000. 

Water and Sewer Fees 
From a government‐wide entity perspective, combined water and sewer fees represent one of the City’s 
largest income streams, totaling $18,871,053 during the year ended June 30, 2022.   Charges to 
customers are based on the amount of metered services used times rates periodically set by the City 
Commission.  During the year ended June 30, 2022 water rates increased by 4%.  Water rates will 
increase by 4% in the next fiscal year to pay for improvements being made at the Water Filtration Plant.  
The City began providing treated water to the City of Norton Shores and Fruitport Charter Township in 
May 2015.  The addition of these two new large municipal customers allows the spreading of water 
treatment costs over a larger customer base while remaining well within the plant’s rated treatment 
capacity.   

Due to the impact of continued increases in wastewater treatment charges from the Muskegon County 
Wastewater Treatment System, the City Commission passed a resolution effective July 1, 2016, which 
ties the sewer rate the City will charge to its customers to a multiplier of the rate that the county bills 
the City for wastewater treatment.  This rate change is expected to help maintain the financial viability 
of the City’s sewer system. 

The City of Muskegon along other jurisdictions in the area have an agreement in place with the 
Muskegon County Wastewater Treatment System starting in 2022 to pay waste water treatment fees 
based of the flow percentage contributed to the system and the annual revenue required from all 
jurisdictions to run treatment plant.   In the past, our fees were based on actual flow.  By changing to 
this method, we will be able to stabilized our monthly payments.   

CONTACTING THE CITY’S FINANCIAL MANAGEMENT 

This financial report is designed to provide our citizens, taxpayers, customers, and investors and 
creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for 
the money it receives.  If you have questions about this report, need additional financial information, or 
wish to obtain separate financial statements for the City’s component units, contact the City’s Finance 
Department at (231) 724‐6713 or by e‐mail ([email protected]). 




                                                     32
                                                     63
FINANCIAL STATEMENTS




         33
         64
                                                                 City of Muskegon
                                                        STATEMENT OF NET POSITION
                                                               June 30, 2022


                                                                   Governmental      Business-type                        Component
                                                                     Activities       Activities           Total            Units
ASSETS
Current assets
  Cash and investments                                             $    34,483,950   $    1,883,569    $     36,367,519   $    403,928
  Assets managed by others                                               1,356,585                -           1,356,585              -
  Receivables
      Accounts and notes                                                 4,081,055        3,142,057           7,223,112         32,616
      Leases                                                               384,081           83,003             467,084              -
  Due from other governmental units                                      2,201,173          132,610           2,333,783              -
  Internal balances                                                        458,620         (458,620)                  -              -
  Due from component units                                                  64,211                -              64,211              -
  Inventories                                                               38,867          327,524             366,391              -
  Prepaid items                                                            560,480          149,850             710,330              -
         Total current assets                                           43,629,022        5,259,993          48,889,015        436,544
Noncurrent assets
  Restricted cash and investments                                                -         829,000              829,000               -
  Advances to component units                                            1,046,980               -            1,046,980               -
  Leases receivable, less amounts due within one year                    7,868,565         857,733            8,726,298               -
  Notes receivable, less amounts due within one year                       658,160               -              658,160               -
  Capital assets, net
     Nondepreciable                                                     22,269,876       14,966,408          37,236,284        400,000
     Depreciable                                                        83,334,823       54,121,232         137,456,055        589,881
         Total noncurrent assets                                       115,178,404       70,774,373         185,952,777        989,881
            Total assets                                               158,807,426       76,034,366         234,841,792       1,426,425
DEFERRED OUTFLOWS OF RESOURCES
  Related to pension                                                     1,741,007         121,033            1,862,040               -
  Related to other postemployment benefits                                 951,112          66,120            1,017,232               -
            Total deferred outflows of resources                         2,692,119         187,153            2,879,272               -
               Total assets and deferred outflows of resources         161,499,545       76,221,519         237,721,064       1,426,425




The accompanying notes are an integral part of this statement.

                                                                       34
                                                                       65
                                                                      City of Muskegon
                                                  STATEMENT OF NET POSITION—CONTINUED
                                                               June 30, 2022


                                                                        Governmental       Business-type                        Component
                                                                          Activities        Activities          Total             Units
LIABILITIES
Current liabilities
  Accounts payable and accrued liabilities                              $     5,865,462    $      848,762   $      6,714,224    $    119,386
  Due to other governmental units                                                22,189           903,943            926,132           2,000
  Due to primary government                                                           -                 -                  -          64,211
  Short-term note                                                                84,297                 -             84,297               -
  Unearned revenues - unused Farmers Market tokens                               26,331                 -             26,331               -
  Unearned revenues - expenditure-driven grants                              15,914,190                 -         15,914,190               -
  Unearned revenues - prepaid events                                             67,658                 -             67,658               -
  Unearned revenues - prepaid fees                                                    -           113,943            113,943               -
  Bonds and other obligations, due within one year                            1,720,469         1,358,700          3,079,169         255,000
         Total current liabilities                                           23,700,596         3,225,348         26,925,944         440,597
Noncurrent liabilities
  Advances from primary government                                                    -                 -                  -        1,046,980
  Bonds and other obligations, less amounts due within one year              31,093,831        13,334,897         44,428,728          841,547
  Net pension liability                                                      29,044,232         2,019,117         31,063,349                -
  Net other postemployment benefits liability                                 2,333,505           162,222          2,495,727                -
         Total noncurrent liabilities                                        62,471,568        15,516,236         77,987,804        1,888,527
                Total liabilities                                            86,172,164        18,741,584        104,913,748        2,329,124
DEFERRED INFLOWS OF RESOURCES
   Related to leases                                                          8,252,646          940,736           9,193,382                -
   Related to pension                                                         6,498,416          451,762           6,950,178                -
   Related to other postemployment benefits                                   2,467,870          171,563           2,639,433                -
            Total deferred inflows of resources                              17,218,932         1,564,061         18,782,993                -
                Total liabilities and deferred inflows of resources         103,391,096        20,305,645        123,696,741        2,329,124
NET POSITION
  Net investment in capital assets                                           75,201,511        54,668,925        129,870,436         (106,666)
  Restricted
    Highways, streets and bridges                                             3,244,753                -           3,244,753                -
    Debt service                                                                      -          822,000             822,000                -
    Trinity Health Arena                                                         61,968                -              61,968                -
    Law enforcement                                                              23,161                -              23,161                -
    Business improvement districts                                              176,733                -             176,733                -
    Perpetual care
        Expendable                                                              477,332                -             477,332                -
        Non-expendable                                                        1,687,702                -           1,687,702                -
    Other purposes                                                              173,606                -             173,606                -
  Unrestricted                                                              (22,938,317)         424,949         (22,513,368)        (796,033)
                Total net position                                      $   58,108,449     $ 55,915,874     $   114,024,323     $   (902,699)




The accompanying notes are an integral part of this statement.

                                                                            35
                                                                            66
                                                                                                                City of Muskegon
                                                                                                          STATEMENT OF ACTIVITIES
                                                                                                           For the year ended June 30, 2022


                                                                                                                                                                 Net (Expense) Revenue and Changes in Net Position
                                                                                                               Program Revenue                                          Primary Government
                                                                                         Charges for          Operating Grants         Capital Grants     Governmental Business-type                        Component
     Functions/Programs                                                    Expenses       Services            and Contributions      and Contributions      Activities      Activities        Total              Units
     Primary government
        Governmental activities
           Public representation services                              $     1,715,050   $      324,314          $            -         $             -   $    (1,390,736)   $            -    $    (1,390,736)   $            -
           Administrative services                                             913,923          715,421                       -                  10,691          (187,811)                -           (187,811)                -
           Financial services                                                5,473,498        1,085,220                  50,000                       -        (4,338,278)                -         (4,338,278)                -
           Public safety                                                    13,387,378        2,680,675                   3,447                       -       (10,703,256)                -        (10,703,256)                -
           Public works                                                      4,687,660          854,793                   2,000                       -        (3,830,867)                -         (3,830,867)                -
           Highways, streets and bridges                                     7,308,858          522,779               6,114,381                       -          (671,698)                -           (671,698)                -
           Community and economic development                                9,857,082          498,766               3,029,193                       -        (6,329,123)                -         (6,329,123)                -
           Culture and recreation                                            6,588,542        4,389,524               1,825,037               2,804,428         2,430,447                 -          2,430,447                 -
           General administration                                              511,323           76,182                       -                       -          (435,141)                -           (435,141)                -
           Interest on long-term debt                                          881,204                -                       -                       -          (881,204)                -           (881,204)                -
              Total governmental activities                                 51,324,518       11,147,674              11,024,058               2,815,119       (26,337,667)                -        (26,337,667)                -
        Business-type activities
          Sewer                                                              8,153,673       10,298,642                      -                        -                 -         2,144,969          2,144,969                 -
          Water                                                              9,261,276        8,903,549                103,208                        -                 -          (254,519)          (254,519)                -
          Marina and launch ramp                                               461,504          292,416                      -                        -                 -          (169,088)          (169,088)                -
              Total business-type activities                                17,876,453       19,494,607                103,208                        -                 -         1,721,362          1,721,362                 -
36




                  Total primary government                             $ 69,200,971      $ 30,642,281            $ 11,127,266           $ 2,815,119           (26,337,667)        1,721,362        (24,616,305)                -
     Component units
       Local Development Finance Authority - SmartZone                 $      197,647    $            -          $           -          $      200,000                  -                 -                  -            2,353
       Downtown Development Authority                                         810,219                 -                655,765                       -                  -                 -                  -         (154,454)
       Tax Increment Finance Authority                                         50,000                 -                      -                       -                  -                 -                  -          (50,000)
       Brownfield Redevelopment Authorities                                   666,005                 -                      -                       -                  -                 -                  -         (666,005)
                  Total component units                                $ 1,723,871       $            -          $    655,765           $     200,000                   -                 -                  -         (868,106)
     General revenues
        Property taxes                                                                                                                                         9,182,184                  -          9,182,184        1,139,110
        Income taxes                                                                                                                                          10,020,370                  -         10,020,370                -
        Cable franchise agreement                                                                                                                                369,420                  -            369,420                -
        Grants and contributions not restricted to specific programs                                                                                          15,303,423                  -         15,303,423           36,895
        Unrestricted investment earnings                                                                                                                        (644,067)            23,856           (620,211)           1,357
        Miscellaneous                                                                                                                                            918,179                  -            918,179              674
        Gain on sale of capital asset                                                                                                                          1,122,888                  -          1,122,888                -
     Transfers                                                                                                                                                    35,000            (35,000)                 -                -
                  Total general revenues and transfers                                                                                                        36,307,397            (11,144)        36,296,253        1,178,036
                     Change in net position                                                                                                                     9,969,730         1,710,218         11,679,948          309,930
     Net position at beginning of year                                                                                                                        48,138,719         54,205,656        102,344,375        (1,212,629)
     Net position at end of year                                                                                                                          $ 58,108,449       $ 55,915,874      $ 114,024,323      $ (902,699)



     The accompanying notes are an integral part of this statement.

                                                                                                                         67
                                                                            City of Muskegon
                                                                            BALANCE SHEET
                                                                            Governmental Funds
                                                                              June 30, 2022


                                                                                 Major Street    Trinity Health                       Other            Total
                                                                  General       and Trunkline        Arena        State Grants     Governmental     Governmental
                                                                   Fund             Fund              Fund            Fund            Funds            Funds
ASSETS
  Cash and investments                                        $     8,027,306   $    2,900,461   $            -   $ 16,995,473     $    3,001,131   $   30,924,371
  Assets managed by others                                                  -                -                -              -          1,356,585        1,356,585
  Receivables
     Accounts and loans (net of allowance for uncollectibles)         254,404          66,400         1,456,956               -          989,779         2,767,539
     Property taxes                                                    60,397               -                 -               -                -            60,397
     Income taxes                                                   1,578,087               -                 -               -                -         1,578,087
     Leases                                                         3,794,403               -         4,458,243               -                -         8,252,646
  Due from other governmental units                                   939,809         707,096                 -          49,049          505,219         2,201,173
  Due from other funds                                              2,396,560               -                 -               -                -         2,396,560
  Due from component units                                             64,211               -                 -               -                -            64,211
  Advances to component units                                         600,000               -                 -               -          148,994           748,994
  Prepaid items                                                       271,961          25,067            26,451               -            7,905           331,384
            Total assets                                     $ 17,987,138       $   3,699,024    $   5,941,650    $ 17,044,522     $   6,009,613    $ 50,681,947

LIABILITIES
  Accounts payable                                           $      2,165,692   $     154,402    $      263,449   $    1,229,639   $     303,168    $    4,116,350
  Accrued liabilities                                                 588,110          19,681            17,599                -          41,424           666,814
  Due to other governmental units                                      16,706           4,695                 -                -             788            22,189
  Due to other funds                                                        -               -         1,072,733                -          33,684         1,106,417
  Short-term note                                                           -               -                 -                -          84,297            84,297
  Unearned revenues - unused Farmers Market tokens                          -               -                 -                -          26,331            26,331
  Unearned revenues - expenditure-driven grants                       100,854               -                 -       15,813,336               -        15,914,190
  Unearned revenues - prepaid events                                        -               -            67,658                -               -            67,658
         Total liabilities                                          2,871,362         178,778         1,421,439       17,042,975         489,692        22,004,246

DEFERRED INFLOWS OF RESOURCES
  Unavailable revenues - income taxes                                 460,000                -                -                -                -          460,000
  Related to leases                                                 3,794,403                -        4,458,243                -                -        8,252,646
         Total deferred inflows of resources                        4,254,403                -        4,458,243                -                -        8,712,646

FUND BALANCES
  Nonspendable
    Prepaid items                                                    271,961           25,067            26,451                -            7,905          331,384
    Long-term advances                                               600,000                -                 -                -                -          600,000
    Perpetual care                                                    10,000                -                 -                -        1,677,702        1,687,702
  Restricted
    Highways, streets and bridges                                       8,701        3,495,179                -               -           789,134        4,293,014
    Trinity Health Arena                                                    -                -           35,517               -                 -           35,517
    Law enforcement                                                         -                -                -               -            23,161           23,161
    Business improvement districts                                          -                -                -               -           176,733          176,733
    Perpetual care                                                          -                -                -               -           477,332          477,332
    Other purposes                                                          -                -                -               -           173,606          173,606
  Committed for social equity program                                 189,037                -                -               -                 -          189,037
  Assigned for capital projects and public improvements             1,800,000                -                -           1,547         2,194,348        3,995,895
  Unassigned                                                        7,981,674                -                -               -                 -        7,981,674
         Total fund balances                                       10,861,373        3,520,246           61,968           1,547         5,519,921       19,965,055
            Total liabilities, deferred inflows of
             resources and fund balances                     $ 17,987,138       $   3,699,024    $   5,941,650    $ 17,044,522     $   6,009,613    $ 50,681,947




The accompanying notes are an integral part of this statement.

                                                                                    37
                                                                                    68
                                                          City of Muskegon
                      RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
                                  TO THE STATEMENT OF NET POSITION
                                             June 30, 2022


Total fund balance—governmental funds                                                                             $    19,965,055

Amounts reported for governmental activities in the Statement of Net Position
are different because:

   Capital assets used in governmental activities are not current financial
   resources and, therefore, are not reported in the governmental funds.
      Cost of capital assets                                                                    $ 179,639,742
      Accumulated depreciation                                                                    (76,858,507)        102,781,235

   Other long-term assets are not available to pay for current period
   expenditures and, therefore, are reported as unavailable revenues
   in the governmental funds.
       Income taxes                                                                                                      460,000

   Long-term liabilities in governmental activities are not due and payable in the
   current period and, therefore, are not reported in the governmental funds.
      Accrued interest payable                                                                        (242,800)
      Bonds and notes payable                                                                      (30,403,188)
      Compensated absences                                                                          (2,215,261)
      Net pension liability and related deferred outflows/inflows of resources                     (32,355,582)
      Net other post employment benefits liability and related
       outflows/inflows of resources                                                                (3,685,546)       (68,902,377)

   Internal service funds are used by management to charge the costs of certain activities
   to individual funds. The assets and liabilities of the internal service funds are reported
   with governmental activities in the Statement of Net Position.
       Net position of the internal service funds                                                    4,636,059
       Internal balances representing the cumulative difference between
        actual costs and amounts charged to business-type activities                                 (831,523)          3,804,536

             Net position of governmental activities                                                              $ 58,108,449




The accompanying notes are an integral part of this statement.

                                                                    38
                                                                    69
                                                                   City of Muskegon
                 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                                           Governmental Funds
                                     For the year ended June 30, 2022


                                                                     Major Street   Trinity Health                        Other             Total
                                                    General         and Trunkline       Arena        State Grants      Governmental      Governmental
                                                     Fund               Fund             Fund            Fund             Funds             Funds
REVENUES
  Taxes                                         $   18,795,646      $           -   $            -   $            -    $            -    $   18,795,646
  Licenses and permits                               2,306,048                  -                -                -                 -         2,306,048
  Intergovernmental revenues
     Federal                                           291,918                  -          625,498        9,234,029        2,952,413         13,103,858
     State                                           6,479,990          4,809,424                -        1,244,987        2,538,375         15,072,776
     Local                                              50,000                  -                -                -          261,057            311,057
  Charges for services                               4,566,029                  -        2,683,567                -          495,403          7,744,999
  Fines and forfeitures                                581,369                  -                -                -            1,264            582,633
  Investment earnings and rental income                (93,350)            11,627           79,782                -           36,959             35,018
  Income from assets managed by others                       -                  -                -                -         (134,215)          (134,215)
  Other                                              1,167,117            323,508           14,904                -        1,104,169          2,609,698
         Total revenues                             34,144,767          5,144,559        3,403,751       10,479,016        7,255,425         60,427,518

EXPENDITURES
  Current
    Public representation services                   1,758,928                  -                -                -                -          1,758,928
    Administrative services                            945,841                  -                -                -                -            945,841
    Financial services                               5,668,254                  -                -                -                -          5,668,254
    Public safety                                   15,520,982                  -                -                -              443         15,521,425
    Public works                                     3,728,293                  -                -                -          156,277          3,884,570
    Highways, streets and bridges                            -          3,798,863                -                -        1,998,785          5,797,648
    Community and economic development                 743,693                  -                -                -                -            743,693
    Culture and recreation                           2,839,480                  -        2,274,570                -          484,929          5,598,979
    Other governmental functions                       485,024                  -                -                -                -            485,024
  Debt service
    Principal                                          907,462            230,000                -                -          205,000          1,342,462
    Interest and fees                                  390,771              3,503                -                -          616,730          1,011,004
    Bond issuance costs                                  1,000                  -                -                -                -              1,000
  Capital outlay                                     4,662,678                  -        1,987,141        4,721,218        4,835,674         16,206,711
         Total expenditures                         37,652,406          4,032,366        4,261,711        4,721,218        8,297,838         58,965,539

Excess of revenues over (under) expenditures         (3,507,639)        1,112,193        (857,960)        5,757,798        (1,042,413)        1,461,979

OTHER FINANCING SOURCES (USES)
  Proceeds from sale of capital assets                        -                 -                                 -        1,204,675           1,204,675
  Long-term debt issued                               1,370,873                 -               -                 -                -           1,370,873
  Transfers in                                        5,798,549                 -         865,000            40,750        3,128,500           9,832,799
  Transfers out                                      (3,998,250)                -               -        (5,798,549)        (401,000)        (10,197,799)
         Total other financing sources (uses)        3,171,172                  -         865,000        (5,757,799)       3,932,175          2,210,548

Net change in fund balances                           (336,467)         1,112,193           7,040                (1)       2,889,762          3,672,527
Fund balances at beginning of year                  11,197,840          2,408,053          54,928            1,548         2,630,159         16,292,528
Fund balances at end of year                    $ 10,861,373        $ 3,520,246     $     61,968     $       1,547     $ 5,519,921       $ 19,965,055




The accompanying notes are an integral part of this statement.

                                                                           39
                                                                           70
                                                          City of Muskegon
           RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
        EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
                                 For the year ended June 30, 2022


Net change in fund balances—total governmental funds                                                        $    3,672,527

Amounts reported for governmental activities in the Statement of Activities are
different because:

   Governmental funds report outlays for capital assets as expenditures. However,
   in the Statement of Activities, the cost of these assets is allocated over their
   estimated useful lives and reported as depreciation expense.
       Depreciation expense                                                                 $ (4,992,455)
       Capital outlay                                                                          7,775,915         2,783,460

   Revenues reported in the Statement of Activities that do not provide current
   financial resources are not reported as revenues in the governmental funds.
       Income taxes                                                                                              (190,000)

   The issuance of long-term debt provides current financial resources to
   governmental funds, but increases liabilities in the Statement of Net Position.
   Repayment of debt is an expenditure in the governmental funds, but reduces
   long-term liabilities in the Statement of Net Position.
      Issuance of long-term debt                                                              (1,370,873)
      Repayment of principal on long-term debt                                                 1,342,462          (28,411)
       Changes in accrual of interest and amortization of premiums and discounts
         Change in accrued interest payable                                                        8,900
         Amortization of premiums and discounts                                                  121,900          130,800

   Some expenses reported in the Statement of Activities do not require the use
   of current financial resources and, therefore, are not reported as expenditures
   in the governmental funds.
       Change in compensated absences                                                            (89,499)
       Change in net pension liability and related deferred outflows/inflows of resources     (1,779,430)
       Change in net other post employment benefits liability
        and related deferred outflows/inflows of resources                                     5,078,209         3,209,280

   The internal service funds are used by management to charge the costs of
   certain activities used to individual funds. The net revenue of certain activities
   of the internal service fund is reported with governmental activities.
       Change in net position of the internal service funds                                      510,910
       Change in internal balances representing the current year difference
        between actual costs and amounts charged to business-type activities                    (118,836)         392,074
              Change in net position of governmental activities                                             $   9,969,730




The accompanying notes are an integral part of this statement.

                                                                  40
                                                                  71
                                                                     City of Muskegon
                                                           STATEMENT OF NET POSITION
                                                                 Proprietary Funds
                                                                   June 30, 2022


                                                                                                                                            Governmental
                                                                                                                                             Activities -
                                                                           Business-type Activities - Enterprise Funds                        Internal
                                                                                                    Marina and                                 Service
                                                                     Sewer          Water          Launch Ramp         Total                    Funds
ASSETS
Current assets
  Cash and investments                                           $     1,883,569    $             -    $            -    $     1,883,569    $    3,559,579
  Receivables
      Accounts                                                         1,636,556          1,490,380           15,121           3,142,057          333,192
      Leases                                                                   -             83,003                -              83,003                -
  Due from other governmental units                                       50,101             82,509                -             132,610                -
  Inventories                                                             44,157            283,367                -             327,524           38,867
  Prepaid items                                                           62,653             83,677            3,520             149,850          229,096
         Total current assets                                          3,677,036          2,022,936           18,641           5,718,613         4,160,734
Noncurrent assets
  Restricted cash and investments                                       101,000            728,000                  -           829,000                 -
  Leases receivable, less amounts due within one year                         -            857,733                  -           857,733                 -
  Advances to component units                                                 -                  -                  -                 -           297,986
  Capital assets
     Land                                                                 16,188            103,500            22,562            142,250            65,000
     Land improvements                                                         -             62,948         1,923,404          1,986,352           301,715
     Buildings, improvements and systems                              34,456,135         75,761,108         2,535,088        112,752,331         1,668,215
     Machinery and equipment                                             157,622          3,101,790            60,620          3,320,032        10,313,517
     Construction in progress                                          5,478,995          9,345,163                 -         14,824,158                 -
        Less accumulated depreciation                                (12,681,088)       (47,696,197)       (3,560,198)       (63,937,483)       (9,524,983)
         Net capital assets                                          27,427,852         40,678,312           981,476          69,087,640         2,823,464
         Total noncurrent assets                                     27,528,852         42,264,045           981,476          70,774,373         3,121,450
            Total assets                                             31,205,888         44,286,981         1,000,117          76,492,986         7,282,184
DEFERRED OUTFLOWS OF RESOURCES
  Related to pension                                                     27,931             93,102                  -           121,033            74,482
  Related to other postemployment benefits                               15,258             50,862                  -            66,120            40,689
            Total deferred outflows of resources                         43,189            143,964                  -           187,153           115,171
               Total assets and deferred outflows of resources       31,249,077         44,430,945         1,000,117          76,680,139         7,397,355




The accompanying notes are an integral part of this statement.

                                                                             41
                                                                             72
                                                                           City of Muskegon
                                                      STATEMENT OF NET POSITION—CONTINUED
                                                                  Proprietary Funds
                                                                    June 30, 2022


                                                                                                                                              Governmental
                                                                                                                                               Activities -
                                                                                 Business-type Activities - Enterprise Funds                    Internal
                                                                                                          Marina and                             Service
                                                                           Sewer          Water          Launch Ramp         Total                Funds
LIABILITIES
Current liabilities
  Accounts payable                                                     $      73,830      $      562,003    $    23,581     $      659,414    $     779,382
  Accrued liabilities                                                         54,043             134,267          1,038            189,348           60,116
  Due to other governmental units                                            898,388               5,555              -            903,943                -
  Due to other funds                                                               -           1,014,690        275,453          1,290,143                -
  Unearned revenues - prepaid fees                                                 -                   -        113,943            113,943                -
  Bonds and other obligations, due within one year                           294,700           1,064,000              -          1,358,700           39,200
          Total current liabilities                                         1,320,961          2,780,515        414,015          4,515,491          878,698

Noncurrent liabilities
  Bonds and other obligations, less amounts due within one year             6,084,589          7,250,308               -        13,334,897          156,651
  Net pension liability                                                       465,950          1,553,167               -         2,019,117        1,242,534
  Net other postemployment benefits liability                                  37,436            124,786               -           162,222           99,829
          Total noncurrent liabilities                                      6,587,975          8,928,261               -        15,516,236        1,499,014
             Total liabilities                                              7,908,936         11,708,776        414,015         20,031,727        2,377,712
DEFERRED INFLOWS OF RESOURCES
   Related to leases                                                               -            940,736                -          940,736                 -
   Related to pension                                                        104,253            347,509                -          451,762           278,007
   Related to other postemployment benefits                                   39,591            131,972                -          171,563           105,577
             Total deferred inflows of resources                             143,844           1,420,217               -         1,564,061          383,584
                 Total liabilities and deferred inflows of resources        8,052,780         13,128,993        414,015         21,595,788        2,761,296
NET POSITION
  Net investment in capital assets                                         21,147,238         32,540,211         981,476        54,668,925        2,823,464
  Restricted for debt service                                                 101,000            721,000               -           822,000                -
  Unrestricted                                                              1,948,059         (1,959,259)       (395,374)         (406,574)       1,812,595
                 Total net position                                    $ 23,196,297       $ 31,301,952      $   586,102         55,084,351    $ 4,636,059

Adjustment to report the cumulative internal balance for the net effect of the activity
 between the internal service funds and the enterprise funds over time                                                            831,523
Net position of business-type activities                                                                                    $ 55,915,874




The accompanying notes are an integral part of this statement.

                                                                                  42
                                                                                  73
                                                                         City of Muskegon
                                    STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
                                                             Proprietary Funds
                                                     For the year ended June 30, 2022


                                                                                                                                            Governmental
                                                                                                                                             Activities -
                                                                                Business-type Activities - Enterprise Funds                   Internal
                                                                                                         Marina and                            Service
                                                                          Sewer           Water         Launch Ramp         Total               Funds
OPERATING REVENUES
  Charges for services                                               $    10,104,566    $    8,483,668    $   282,819     $   18,871,053    $   10,433,668
  Other                                                                      194,076           523,089          9,597            726,762           158,582
           Total operating revenues                                       10,298,642         9,006,757        292,416         19,597,815        10,592,250

OPERATING EXPENSES
  Administration                                                             664,312         1,439,537         11,169          2,115,018           958,063
  Insurance premiums and claims                                                    -                 -              -                  -         5,386,649
  Wastewater treatment                                                     4,847,582                 -              -          4,847,582                 -
  Wastewater maintenance                                                   1,990,288                 -              -          1,990,288                 -
  Filtration plant operations                                                      -         2,621,015              -          2,621,015                 -
  Water distribution                                                               -         3,195,179              -          3,195,179                 -
  Other operations                                                                 -                 -        345,305            345,305         3,701,160
  Depreciation                                                               630,870         1,916,908        107,417          2,655,195           499,466
           Total operating expenses                                        8,133,052         9,172,639        463,891         17,769,582        10,545,338

           Operating income (loss)                                         2,165,590         (165,882)        (171,475)        1,828,233           46,912

NONOPERATING REVENUES (EXPENSES)
  Investment earnings                                                          4,421           19,435                -           23,856            25,649
  Gain on sale of capital assets                                                   -                -                -                -            38,349
  Interest expense                                                           (83,739)        (141,968)               -         (225,707)                -
           Total nonoperating revenue (expenses)                             (79,318)        (122,533)               -         (201,851)           63,998

           Income (loss) before transfers                                  2,086,272         (288,415)        (171,475)        1,626,382          110,910

TRANSFERS
  Transfers in                                                                     -                 -               -                 -          400,000
  Transfers out                                                                    -           (35,000)              -           (35,000)               -
           Total transfers                                                         -           (35,000)              -           (35,000)         400,000

           Change in net position                                          2,086,272         (323,415)        (171,475)        1,591,382          510,910

Net position at beginning of year                                         21,110,025        31,625,367        757,577                            4,125,149

Net position at end of year                                          $ 23,196,297       $ 31,301,952      $   586,102                       $ 4,636,059

Adjustment for the net effect of the current year activity between
 the internal service funds and the enterprise funds                                                                            118,836
Change in net position of business-type activities                                                                        $ 1,710,218




The accompanying notes are an integral part of this statement.

                                                                               43
                                                                               74
                                                                              City of Muskegon
                                                                       STATEMENT OF CASH FLOWS
                                                                                Proprietary Funds
                                                                        For the year ended June 30, 2022


                                                                                                                                                             Governmental
                                                                                                                                                              Activities -
                                                                                               Business-type Activities - Enterprise Funds                     Internal
                                                                                                                       Marina and                              Service
                                                                                          Sewer          Water        Launch Ramp          Total                Funds
CASH FLOWS FROM OPERATING ACTIVITIES
  Receipts from customers                                                             $ 11,047,199      $    8,975,052    $    316,684    $ 20,338,935       $      169,736
  Receipts from interfund services provided                                                132,980             257,743               -         390,723           10,433,668
  Other receipts                                                                                 -                   -               -               -            1,266,428
  Payments to suppliers                                                                 (6,213,667)         (3,421,627)       (329,730)     (9,965,024)          (6,865,909)
  Payments to employees                                                                   (994,237)         (2,655,749)        (51,457)     (3,701,443)          (1,954,355)
  Payments for interfund services used                                                    (846,355)         (1,353,616)        (24,735)     (2,224,706)            (848,990)
         Net cash provided by (used for) operating activities                             3,125,920         1,801,803          (89,238)        4,838,485          2,200,578
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
  Transfers in                                                                                    -                 -               -                  -           400,000
  Transfers out                                                                                   -           (35,000)              -            (35,000)                -
  Interfund borrowing                                                                       (29,970)        1,014,690         267,063          1,251,783          (384,381)
  Advances to component units                                                                     -                 -               -                  -            93,094
         Net cash provided by (used for) noncapital financing activities                    (29,970)          979,690         267,063          1,216,783           108,713
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
  Proceeds from long-term debt                            3,913,081                                          2,671,931               -          6,585,012                -
  Purchases of capital assets                            (4,773,444)                                        (6,610,907)       (177,825)       (11,562,176)        (659,722)
  Principal paid on capital debt                           (272,000)                                          (994,750)              -         (1,266,750)               -
  Interest paid on capital debt                             (84,439)                                          (146,568)              -           (231,007)               -
  Proceeds from sale of capital assets                            -                                                  -               -                  -           74,558
         Net cash provided by (used for) capital and related financing activities         (1,216,802)       (5,080,294)       (177,825)        (6,474,921)        (585,164)
CASH FLOW FROM INVESTING ACTIVITIES
  Investment earnings                                                                         4,421            19,435                -            23,856            25,649
         Net increase (decrease) in cash and investments                                  1,883,569         (2,279,366)              -          (395,797)         1,749,776
Cash and investments at beginning of year                                                   101,000         3,007,366                -         3,108,366          1,809,803
Cash and investments at end of year                                                   $ 1,984,569       $    728,000      $          -    $ 2,712,569        $ 3,559,579
Reconciliation of cash and investments to the Statement of Net Position
  Cash and investments                                                                $   1,883,569     $           -     $          -    $    1,883,569     $    3,559,579
  Restricted cash and investments                                                           101,000           728,000                -           829,000                  -
                                                                                      $ 1,984,569       $    728,000      $          -    $ 2,712,569        $ 3,559,579
Reconciliation of operating income (loss) to net cash provided by (used for)
  operating activities
     Operating income (loss)                                                          $   2,165,590     $    (165,882)    $   (171,475)   $    1,828,233     $      46,912
     Adjustments to reconcile operating income (loss) to net cash provided by
         (used for) operating activities
             Depreciation expense                                                           630,870         1,916,908         107,417          2,655,195           499,466
         Change in assets and liabilities
             Receivables                                                                    881,537           226,038           23,319         1,130,894          1,277,582
             Inventories                                                                    (13,923)          (78,314)               -           (92,237)           (31,549)
             Prepaid items                                                                   (2,710)           (1,420)          (1,063)           (5,193)               386
             Accounts payable                                                              (511,981)           40,412          (39,367)         (510,936)           510,189
             Unearned revenues                                                                    -                 -              949               949                  -
             Accrued liabilities                                                            (23,463)         (135,939)          (9,018)         (168,420)          (102,408)
                Net cash provided by (used for) operating activities                  $ 3,125,920       $ 1,801,803       $   (89,238)    $ 4,838,485        $ 2,200,578




The accompanying notes are an integral part of this statement.

                                                                                     44
                                                                                     75
                                                    City of Muskegon
                                         STATEMENT OF NET POSITION
                                               Fiduciary Funds
                                                June 30, 2022


                                                                       Other Post-
                                                                       Employment
                                                                         Benefits         Custodial
                                                                        Trust Fund         Funds
ASSETS
  Cash and investments                                                 $ 22,146,026   $      816,055
  Accounts receivable                                                             -           13,835
          Total assets                                                   22,146,026          829,890

LIABILITIES
  Accounts payable                                                                -           19,517
  Due to other governmental units                                                 -          622,373
  Deposits held for others                                                        -          188,000
          Total liabilities                                                       -          829,890

NET POSITION
  Restricted for individuals, organizations, and other governments     $ 22,146,026   $               -




The accompanying notes are an integral part of this statement.

                                                                 45
                                                                 76
                                                    City of Muskegon
                               STATEMENT OF CHANGES IN NET POSITION
                                              Fiduciary Funds
                                     For the year ended June 30, 2022


                                                                           Other Post-
                                                                           Employment
                                                                             Benefits        Custodial
                                                                            Trust Fund        Funds
ADDITIONS
  Tax collections for other governments                                $                -    $ 24,329,719
  Other collections for third parties                                                   -       1,521,847
  Employer contributions                                                        2,091,172               -
  Net investment income (loss)                                                 (2,001,928)              -
       Total additions                                                            89,244         25,851,566

DEDUCTIONS
  Payment of taxes to other governments                                                -         24,329,719
  Other payments to third parties                                                      -          1,521,847
  Benefit payments                                                             3,041,543                  -
  Administrative expenses                                                         47,910                  -
       Total deductions                                                        3,089,453         25,851,566

          Change in net position                                               (3,000,209)                -

Net position at beginning of year                                             25,146,235                  -

Net position at end of year                                            $     22,146,026      $            -




The accompanying notes are an integral part of this statement.

                                                                 46
                                                                 77
                                                             City of Muskegon
                                                     STATEMENT OF NET POSITION
                                                     Discretely Presented Component Units
                                                                 June 30, 2022


                                                          Local
                                                       Development                          Tax
                                                         Finance          Downtown      Increment          Brownfield
                                                        Authority -      Development      Finance        Redevelopment
                                                        SmartZone         Authority      Authority         Authorities          Total
ASSETS
Current assets
  Cash and investments                                  $     46,925     $    336,989       $   20,014    $            -    $    403,928
  Accounts receivable                                              -           32,616                -                 -          32,616
         Total current assets                                 46,925          369,605           20,014                 -         436,544

Noncurrent assets
  Capital assets, net
     Nondepreciable                                          400,000                -                -                 -         400,000
     Depreciable                                             589,881                -                -                 -         589,881
         Total noncurrent assets                             989,881                -                -                 -         989,881
                Total assets                                1,036,806         369,605           20,014                 -        1,426,425

LIABILITIES
Current liabilities
  Accounts payable                                                 -          109,697                -                -          109,697
  Accrued liabilities                                          5,400            4,289                -                -            9,689
  Due to other governmental units                                  -            2,000                -                -            2,000
  Due to primary government                                        -                -                -           64,211           64,211
  Bonds and other obligations, due within one year           255,000                -                -                -          255,000
         Total current liabilities                           260,400          115,986                -           64,211          440,597

Noncurrent liabilities
  Advances from primary government                                  -               -                -        1,046,980         1,046,980
  Bonds and other obligations, less amounts due
     within one year                                         841,547                -                -                 -         841,547
         Total noncurrent liabilities                        841,547                -                -        1,046,980         1,888,527
                Total liabilities                           1,101,947         115,986                -        1,111,191         2,329,124

NET POSITION
  Net investment in capital assets                          (106,666)               -                -                 -         (106,666)
  Unrestricted                                                41,525          253,619           20,014        (1,111,191)        (796,033)
                Total net position                      $   (65,141)     $   253,619        $ 20,014      $ (1,111,191)     $   (902,699)




The accompanying notes are an integral part of this statement.

                                                                        47
                                                                        78
                                                                                          City of Muskegon
                                                                                  STATEMENT OF ACTIVITIES
                                                                                 Discretely Presented Component Units
                                                                                   For the year ended June 30, 2022


                                                                                                                            Net (Expense) Revenue and Changes in Net Position
                                                                                                            Local
                                                                                Program Revenue          Development                               Tax
                                                                            Operating      Capital         Finance             Downtown        Increment        Brownfield
                                                                            Grants and    Grants and      Authority -         Development        Finance      Redevelopment
     Functions/Programs                                      Expenses      Contributions Contributions    SmartZone            Authority        Authority       Authorities          Total
     Local Development Finance Authority - SmartZone
       Community and economic development                   $    172,648    $         -    $         -    $   (172,648)        $          -    $         -     $            -    $    (172,648)
       Interest on long-term debt                                 24,999              -        200,000         175,001                    -              -                  -          175,001
           Total Local Development Finance
            Authority - SmartZone                                197,647              -        200,000           2,353                    -              -                  -            2,353

     Downtown Development Authority
       Economic development                                      810,219        655,765              -                  -          (154,454)             -                  -         (154,454)

     Tax Increment Finance Authority
       Community and economic development                         50,000              -              -                  -                 -        (50,000)                 -          (50,000)
48




     Brownfield Redevelopment Authorities
        Community and economic development                       648,065              -              -                  -                 -              -          (648,065)         (648,065)
        Interest on long-term debt                                17,940              -              -                  -                 -              -           (17,940)          (17,940)
           Total Brownfield Redevelopment Authorities            666,005              -              -                  -                 -              -          (666,005)         (666,005)
              Total discretely presented component units    $ 1,723,871     $ 655,765      $ 200,000             2,353             (154,454)       (50,000)         (666,005)         (868,106)

     General revenues
       Property taxes                                                                                           85,861             321,446         42,475            689,328         1,139,110
       Grants and contributions not restricted to specific programs                                              3,084                   -          9,596             24,215            36,895
       Unrestricted investment income                                                                              112                 543             58                644             1,357
       Miscellaneous                                                                                                 -                   -              -                674               674
              Total general revenues                                                                            89,057             321,989         52,129            714,861         1,178,036

                  Change in net position                                                                        91,410             167,535           2,129            48,856           309,930

     Net position at beginning of year                                                                        (156,551)             86,084         17,885          (1,160,047)       (1,212,629)

     Net position at end of year                                                                          $   (65,141)         $   253,619     $   20,014      $ (1,111,191)     $   (902,699)




     The accompanying notes are an integral part of this statement.

                                                                                                  79
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  The financial statements of the City of Muskegon (City) have been prepared in conformity with accounting
  principles generally accepted in the United States of America (GAAP) as applied to government units. The
  Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
  governmental accounting and financial reporting principles. The more significant of the City's accounting
  policies are described below.

  Reporting Entity
  The City of Muskegon was incorporated October 6, 1919, under the provisions of the Home Rule Act of the
  State of Michigan. The City is a municipal corporation governed by an elected mayor and six-member City
  Commission and is administered by a city manager appointed by the City Commission. The accompanying
  financial statements present the City and its component units, entities for which the government is considered
  to be financially accountable. Blended component units, are, in substance, part of the primary government's
  operations, even though they are legally separate entities. Thus, blended component units are appropriately
  presented as funds of the primary government. Each discretely presented component unit is reported in a
  separate column in the government-wide financial statements (see note below for description) to emphasize
  that it is legally separate from the City.

  Discretely Presented Component Units
  Downtown Development Authority (DDA). The DDA’s sole purpose is the collection of property tax
  incremental revenues, the issuance and repayment of debt and the construction of public facilities to promote
  and facilitate economic growth in the downtown district. Members of the DDA are appointed by the City
  Commission and the Authority is fiscally dependent on the City since the City Commission approves the
  DDA budget and must approve any debt issuance. The DDA is presented as a governmental fund type.

  Tax Increment Finance Authority (TIFA). The TIFA’s sole purpose is the collection of property tax
  incremental revenues and promotion of economic development activities (including issuance of debt) in a
  sub-section of the downtown district. Members of the TIFA are appointed by the City Commission and the
  Authority is fiscally dependent on the City since the City Commission approves the TIFA budget and must
  approve any debt issuance. The TIFA is presented as a governmental fund type.

  Local Development Finance Authority (LDFA). The City has created three separate local development
  finance authority districts under the aegis of the LDFA to promote and facilitate economic growth in the Port
  City Industrial Park, the Medendorp Industrial Park, and the SmartZone Hi-Tech Park (SmartZone).
  Currently only the SmartZone is active. The LDFA’s sole purpose is the collection of property tax
  incremental revenues and the construction of public facilities within the districts. Members of the LDFA are
  appointed by the City Commission and the Authority is fiscally dependent on the City since the City
  Commission approves budgets and must approve any debt issuance. The LDFA districts are presented as
  governmental fund types.

  Brownfield Redevelopment Authority (BRA). There are six separate designated areas under the aegis of the
  BRA – the Betten-Henry Street site, the former downtown mall site, the Terrace Point site, the Pigeon Hill
  site, the Hartshorn Marina site, and the scattered housing site. The Authority’s sole purpose is the collection
  of property tax incremental revenues and promotion of environmental remediation (including issuance of
  debt) in designated brownfield areas. Members of the BRA are appointed by the City Commission and the
  Authority is fiscally dependent on the City since the City Commission approves the BRA budget and must
  approve any debt issuance. The BRA areas are presented as governmental fund types.




                                                      49
                                                      80
                                                 City of Muskegon
                                   NOTES TO FINANCIAL STATEMENTS
                                              June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Reporting Entity—Continued

  Discretely Presented Component Units—Continued
  Complete financial statements of the component units can be obtained from their administrative offices,
  933 Terrace Street, Muskegon, Michigan 49443.

  Related Organizations
  The following organizations are related to the City’s financial reporting entity:

  Muskegon Hospital Finance Authority. The Muskegon Hospital Finance Authority was created by the City of
  Muskegon in accordance with the laws of the State of Michigan. Members of the Hospital Finance Authority
  are appointed by the City, but the City is not financially accountable for the Authority and therefore the
  Authority is excluded from the accompanying financial statements. The Hospital Finance Authority’s sole
  purpose is to issue tax-exempt debt for the benefit of Mercy Health Partners Hospital, which is located within
  the City. The Authority has no assets or financial activity and does not prepare financial statements. The
  Hospital Finance Authority has no taxing power. As of June 30, 2022, there was no outstanding debt issued
  by the Hospital Finance Authority. The City is not obligated in any manner for repayment of debt issued by
  the Hospital Finance Authority, as any debt is payable solely from contractual payments from the hospitals.

  Muskegon Housing Commission. The Muskegon Housing Commission was created by the City of Muskegon
  in accordance with the laws of the State of Michigan. Members of the Housing Commission are appointed by
  the City, but the City is not financially accountable for the Commission and therefore the Commission is
  excluded from the accompanying financial statements. The Housing Commission’s main purpose is to
  administer activities that provide adequate housing facilities for low-income families and the elimination of
  housing conditions that are detrimental to the public peace, health, safety, and welfare. The Commission’s
  policy is to prepare its financial statements on the basis prescribed by the Department of Housing and Urban
  Development. Accordingly, the summary information below (which is required by federal regulations), is not
  intended to present financial position and results of operations in conformity with generally accepted
  accounting principles. Summary financial information for the fiscal year ended September 30, 2021, the date
  of its latest audited financial statements is as follows:

  Total assets and deferred outflows of resources                                     $    3,562,172
  Total liabilities and deferred inflows of resources                                       (526,830)
  Total net position                                                                  $   3,035,342

  Total operating income                                                              $    2,222,489
  Total operating expenses                                                                (2,408,929)
  Total nonoperating revenues                                                                      8
  Capital contributions                                                                        4,557
  Prior period adjustment                                                                     12,823
  Change in net position                                                              $   (169,052)




                                                        50
                                                        81
                                             City of Muskegon
                                NOTES TO FINANCIAL STATEMENTS
                                           June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Basis of Presentation—Government-wide and Fund Financial Statements
  The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
  report information on all of the nonfiduciary activities of the primary government and its component units.
  All fiduciary activities are reported only in the fund financial statements. Governmental activities, which
  normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are
  reported separately from business-type activities, which rely to a significant extent on fees and charges to
  external customers for support. Likewise, the primary government is reported separately from certain legally
  separate component units for which the primary government is financially accountable.

  While separate government-wide and fund financial statements are presented, they are interrelated. The
  governmental activities column incorporates data from governmental funds and internal service funds, while
  business-type activities incorporate data from the City’s enterprise funds. Separate financial statements are
  provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded
  from the government-wide financial statements.

  As discussed earlier, the City’s discretely presented component units are reported in a separate column in the
  government-wide financial statements.

  As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
  statements. Exceptions to this general rule are payments-in-lieu of taxes where the amounts are reasonably
  equivalent in value to the interfund services provided and other charges between the City's water and sewer
  functions and various other functions of the government. Elimination of these charges would distort the
  direct costs and program revenues reported for the various functions concerned.

  The fund financial statements provide information about the City’s funds, including its fiduciary funds and
  blended component units. Separate statements for each fund category – governmental, proprietary, and
  fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise
  funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated
  and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate
  columns in the fund financial statements.

  The City reports the following major governmental funds:

      The General Fund is the government's primary operating fund. It accounts for all financial resources of
      the general government, except those required to be accounted for in another fund.

      The Major Street and Trunkline Fund accounts for gas and weight tax allocations to the City by the
      Michigan Department of Transportation for construction and maintenance of major streets within the
      City.

      The Trinity Health Arena Fund accounts for revenues received for the operation and maintenance of
      Trinity Health Arena.

      The State Grants Fund accounts for grant revenues received from the State of Michigan for the purpose of
      improvements and/or rehabilitation of City property, environmental remediation at lakeshore sites or new
      infrastructure in the City’s downtown.




                                                      51
                                                      82
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Basis of Presentation—Government-wide and Fund Financial Statements—Continued
  The City reports the following three major proprietary funds:

      The Sewer Fund accounts for user charges, operating expenses and debt service of the City’s sewer
      system and pays for access to the County’s sewage treatment plant.

      The Water Fund accounts for user charges, operating expenses and debt service of the City’s water
      system.

      The Marina and Launch Ramp Fund accounts for user fees collected and operating expenses for the
      Hartshorn Marina and boat launch ramp facilities.

  Additionally, the City reports the following fund types:

      Internal Service Funds account for internal engineering services for City projects; the purchase, operation,
      and depreciation of all City owned equipment; the payment of insurance claims and benefits; and the
      operation, maintenance, and depreciation of the City’s public service building to other funds of the
      government on a cost reimbursement basis.

      The Other Post-Employment Benefit Trust Funds are used to report resources that are administered
      through irrevocable trusts for the benefit of City employees and retirees.

      The Custodial Funds are used to report fiduciary activities that are not required to be reported in pension
      (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds.

  During the course of operations, the City has activity between funds for various purposes. Any residual
  balances outstanding at year-end are reported as due from/to other funds and advances to/from other funds.
  While these balances are reported in fund financial statements, certain eliminations are made in the
  preparation of the government-wide financial statements. Balances between funds included in governmental
  activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is
  included as internal balances in the governmental activities column. Similarly, balances between the funds
  included in business-type activities (i.e., enterprise funds) are eliminated so that only the net amount is
  included as internal balances in the business-type activities column.

  Further, certain activity occurs during the year involving transfers of resources between funds. In fund
  financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund
  financial statements, certain eliminations are made in the preparation of the government-wide financial
  statements. Transfers between the funds included in governmental activities are eliminated so that only the
  net amount is included as transfers in the governmental activities column. Similarly, balances between funds
  included in business-type activities are eliminated so that only the net amount is included as transfers in the
  business-type activities column.

  Measurement Focus and Basis of Accounting
  The accounting and financial reporting treatment is determined by the applicable measurement focus and
  basis of accounting. Measurement focus indicates the type of resources being measured such as current
  financial resources or economic resources. The basis of accounting indicates the timing of transactions or
  events for recognition in the financial statements.




                                                      52
                                                      83
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Measurement Focus and Basis of Accounting—Continued
  The government-wide financial statements are reported using the economic resources measurement focus and
  the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
  liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
  in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
  eligibility requirements imposed by the provider have been met.

  The governmental fund financial statements are reported using the current financial resources measurement
  focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
  measurable and available. Revenues are considered to be available when they are collectible within the
  current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
  considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
  Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
  service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
  recorded only when payment is due. General capital asset acquisitions are reported as expenditures in
  governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other
  financing sources.

  Income taxes, property taxes, franchise taxes, licenses, and interest associated with the current fiscal period
  are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
  period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time
  requirements, and the amount is received during the period or within the availability period for this revenue
  source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the
  qualifying expenditures have been incurred and all other eligibility requirements have been met. Only the
  portion of special assessments receivable within 60 days of the end of the current fiscal period is considered
  to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be
  measurable and available only when cash is received by the government.

  The proprietary and fiduciary funds are reported using the economic resources measurement focus and the
  accrual basis of accounting.

  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

  Cash and Investments
  The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
  investments with original maturities of three months or less from the date of acquisition.

  Investments for the City are reported at fair value (generally based on quoted market prices).

  The City has adopted an investment policy in compliance with State of Michigan statutes. Those statutes
  authorize the City to invest in obligations of the United States, certificates of deposit, prime commercial
  paper, securities guaranteed by United States agencies or instrumentalities, United States government or
  federal agency obligation repurchase agreements, bankers’ acceptances, state-approved investment pools and
  certain mutual funds.

  The Other Post-Employment Benefit Trust Fund is held in trust by the Municipal Employees’ Retirement
  System (MERS) and is subject to the investment policies of MERS and State of Michigan statutes allowing
  diverse investments in stocks, corporate and government bonds, mortgages, real estate, and other investments.




                                                       53
                                                       84
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance—Continued

  Cash and Investments—Continued
  The component unit’s cash and investments are maintained within the City’s investment pool.

  For the purpose of the statement of cash flows, the City considers all assets held in the cash and investment
  pool to be cash and cash equivalents because the investments are not identifiable to the specific funds and the
  assets can be withdrawn at any time, similar to a demand deposit account.

  Inventories and Prepaid Items
  All inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories is
  recorded as expenses when consumed rather than when purchased in the business-type activities.

  Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
  items in both government-wide and fund financial statements. The cost of prepaid items is recorded as
  expenditures/expenses when consumed rather than when purchased.

  Leases Receivable
  The City is a lessor for certain noncancelable leases. The City recognizes a lease receivable and a deferred
  inflow of resources in the government-wide and fund financial statements for each lease.

  At the commencement of a lease, the City initially measures the lease receivable at the present value of
  payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the
  principal portion of lease payments received. The deferred inflow of resources is initially measured as the
  initial amount of the lease receivable, adjusted for lease payment received at or before the lease
  commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of
  the lease term.

  Key estimates and judgements include how the City determines (1) the discount rate is uses to discount the
  expected lease receipts to present value, (2) lease term, and (3) lease receipts.

  The City uses its estimated incremental borrowing rate as the discount rate for leases.

  The lease term includes the noncancelable period of the lease. Lease receipts included in the measurement of
  the lease receivable is composed of fixed payments from the lessee.

  The City monitors changes in circumstances that would require a remeasurement of a lease, and will
  remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to
  significantly affect the amount of the lease receivable.

  Capital Assets
  Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
  sidewalks, and similar items), are reported in the applicable governmental or business-type activities column
  in the government-wide financial statements. Capital assets are defined by the City as assets with an initial,
  individual cost of more than $10,000 and an estimated useful life in excess of two years.

  As the City constructs or acquires additional capital assets each period, including infrastructure assets, they
  are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs
  which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency
  of the item or increase its estimated useful life. Donated capital assets are recorded at their estimated
  acquisition value at the date of donation.




                                                       54
                                                       85
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance—Continued

  Capital Assets—Continued
  Land and construction in progress are not depreciated. The other property, plant, equipment, and
  infrastructure of the City are depreciated using the straight-line method over the following estimated useful
  lives:

           Capital Asset Classes                                                           Years
          Land improvements                                                                 5-25
          Leasehold improvements                                                           10-25
          Buildings and improvements                                                       25-50
          Utility buildings, improvements and systems                                     40-100
          Furniture, vehicles and equipment                                                 5-20
          Infrastructure                                                                   15-50
          Shared improvements                                                                20

  Defined Benefit Plan
  The City offers a defined benefit pension plan to its employees through Municipal Employees Retirement
  System (MERS). The City records a net pension liability for the difference between the total pension liability
  calculated by the actuary and the Plan’s fiduciary net position. For purposes of measuring the net pension
  liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension
  expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
  fiduciary net position have been determined on the same basis as they are reported by MERS. For this
  purpose, benefit payments (including refunds of employee contributions) are recognized when due and
  payable in accordance with the benefit terms. Investments are reported at fair value.

  Other Postemployment Benefit Costs
  The City offers a single-employer, defined benefit retiree healthcare benefits to retirees. The City records a
  net other postemployment benefit (OPEB) liability for the difference between the total OPEB liability
  calculated by the actuary and the OPEB Plan’s fiduciary net position. For purposes of measuring the net
  OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB
  expense, information about the fiduciary net position of the OPEB Plan and additions to/deductions from the
  OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the OPEB
  Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when
  due and payable in accordance with the benefit terms. Investments are reported at fair value.

  Deferred Outflows/Inflows of Resources
  In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred
  outflows of resources. This separate financial statement element, deferred outflows of resources, represents a
  consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of
  resources (expense/expenditures) until then.

  In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred
  inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
  acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of
  resources (revenue) until that time.




                                                       55
                                                       86
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance—Continued

  Net Position Flow Assumption
  Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted
  bond or grant proceeds) and unrestricted resources. In order to calculate the amounts of net position to report
  as restricted and unrestricted in the government-wide and proprietary fund financial statements, a flow
  assumption must be made about the order in which the resources are considered to be applied. It is the City’s
  policy to consider restricted net position to have been depleted before unrestricted net position is applied.

  Fund Balance Flow Assumptions
  Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources
  (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as
  restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a
  flow assumption must be made about the order in which the resources are considered to be applied. It is the
  City’s policy to consider restricted fund balance to have been depleted before using any of the components of
  unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the
  same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund
  balance is applied last.

  Fund Balance Policies
  Fund balance of governmental funds is reported in various categories based on the nature of any limitations
  requiring the use of resources for specific purposes. The City itself can establish limitation on the use of
  resources through either a commitment (committed fund balance) or an assignment (assigned fund balance).

  The committed fund balance classification includes amounts that can be used only for the specific purposes
  determined by a formal action of the City’s highest level of decision-making authority. The City Commission
  is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to the
  end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains
  in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation.

  Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes
  but do not meet the criteria to be classified as committed. The City Commission has by resolution authorized
  the city manager to assign fund balance. The City Commission may also assign fund balance as it does when
  appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent
  year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other
  words, an additional action does not normally have to be taken for the removal of an assignment. Conversely,
  as discussed above, an additional action is essential to either remove or revise a commitment.

  The City has a minimum fund balance policy requiring unassigned fund balance of the General Fund be at
  least 13 percent of prior year actual revenues.

  Revenues and Expenditures/Expenses

  Program Revenues
  Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or
  directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and
  contributions (including special assessments) that are restricted to meeting the operational or capital
  requirements of a particular function or segment. All taxes, including those dedicated for specific purposes,
  and other internally dedicated resources are reported as general revenues rather than as program revenues.



                                                       56
                                                       87
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued

  Revenues and Expenditures/Expenses—Continued

  Property Taxes
  All trade and property tax receivables are shown net of allowance for uncollectibles.

  The City bills and collects its own property taxes and also collects taxes for the county, school and State of
  Michigan. Taxes are levied and liened on December 1 on the taxable valuation of property (as defined by
  state statutes) located in the Local Governmental Unit as of the preceding December 31. Uncollected real
  property taxes as of the following March 1 are turned over by the City to the County for collection. The
  County advances the City all of these delinquent real property taxes. The delinquent personal property taxes
  remain the responsibility of the City. The City recognizes all available revenue from the current tax levy.
  Available means collected within the current period or expected to be collected soon enough thereafter to be
  used to pay liabilities of the current period (60 days).

  The 2021 state taxable value for real/personal property of the City totaled approximately $628,694,000 of
  which approximately $32,406,000 was captured by the component units. The ad valorem taxes levied
  consisted of 9.918, 2.9754 and .0788 mills for the City’s general operating, sanitation and community
  promotion purposes. These amounts are recognized in the General Fund with captured amounts shown in the
  TIFA, LDFA SmartZone, DDA, and BRA component units.

  Compensated Absences
  City employees are granted vacation and sick leave in varying amounts based on length of service and
  employee group. Unused vacation and sick leave days are paid to employees upon termination under limits
  that vary by employee group. The liability for these compensated absences is accrued when incurred in the
  government-wide and proprietary fund financial statements. The current portion of this debt is estimated
  based on historical trends. A liability for these amounts is reported in the governmental funds only if they
  have matured, for example, as a result of employee resignations and retirements.

  Proprietary Funds Operating and Nonoperating Revenues and Expenses
  Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
  and expenses generally result from providing services and producing and delivering goods in connection with
  a proprietary fund's principal ongoing operations. The principal operating revenues are charges to customers
  for sales and services. The enterprise funds also recognize as operating revenue the portion of tap fees
  intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise
  funds and internal service funds include the cost of sales and services, administrative expenses, and
  depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
  nonoperating revenues and expenses.

  Comparative Data
  Comparative total data for the prior year have been presented in selected sections of the accompanying
  financial statements in order to provide an understanding of changes in the City’s financial position and
  operations. However, comparative (i.e. presentation of prior year’s totals by fund type) data has not been
  presented in each of the statements since its inclusion would make the statements unduly complex and
  difficult to read. In addition, certain items in the 2021 financial statements have been reclassified to conform
  to the 2022 presentation.




                                                       57
                                                       88
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE B—STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

  Budgetary Information
  Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the
  General Fund and special revenue funds.

  The appropriated budget is prepared by fund, function and department. The City Manager and department
  heads may make transfers of appropriations within a department. Transfers of appropriations between
  departments require the approval of the City Commission. The legal level of budgetary control is the
  department level for the General Fund and the total expenditure or “fund” level for all other funds.

  Appropriations in all budgeted funds lapse at the end of the fiscal year.

  Excess of Expenditures Over Appropriations
  During the year ended June 30, 2022, actual expenditures exceeded appropriations for:

                                                                       Final
                                                                      Budget         Actual
                General Fund
                    Culture and recreation
                        Parks maintenance                          $ 2,379,089     $ 2,482,189
                    Capital outlay                                   4,552,706       4,662,678
                    Transfers out                                    3,130,000       3,998,250
                Trinity Health Arena Fund
                    Culture and recreation                            2,160,000      2,274,570

  These overexpenditures were funded with available fund balance.

  Fund Deficits
  As of June 30, 2022, the City’s Water Fund, Marina and Launch Ramp Fund, and Public Service Building
  Fund had unrestricted fund net position deficits of $1,959,259, $395,374, and $204,432, respectively. These
  deficits will be eliminated through future operations or an interfund transfer.




                                                       58
                                                       89
                                                  City of Muskegon
                                  NOTES TO FINANCIAL STATEMENTS
                                             June 30, 2022


NOTE C—DEPOSITS AND INVESTMENTS
  As of June 30, 2022, the City had the following investments:
                                                                Weighted
                                                                 Average
                                                                Maturity
                                              Fair Value        (Months)            S&P           Percent
  Investment Type
  Money market funds                         $       229,997              1        AAA                   0.5 %
  Negotiable certificates of deposit               1,440,497             25       not rated              3.0
  US agency obligations                            8,606,409            318         AA+                 18.0
  Commercial paper                                   597,900              2         AA                   1.2
  External investment pool                        14,913,867              2        AAA                  31.1
  MERS investment funds                           22,146,026            N/A       not rated             46.2
         Total fair value                    $ 47,934,696                                             100.0 %
      Portfolio weighted average maturity                               109

  The City voluntarily invests certain excess funds in an external investment pool (Pool). The Pool is an
  external investment pool of "qualified" investments for Michigan municipalities. The Pool is not regulated nor
  registered with the SEC. The fair value of the City's investments is the same as the value of the Pool’s shares.
  Deposit and Investment Risks
  Interest rate risk
  The City has a formal investment policy that limits investment maturities as a means of managing its
  exposure to fair value losses arising from increasing interest rates. At least 10 percent of the City’s total
  portfolio must be in instruments maturing in 30 days.
  Credit risk
  State law limits investments in commercial paper and corporate bonds to the two highest classifications issued
  by nationally recognized statistical rating organizations. The City has no investment policy that would further
  limit its investment choices.
  Concentration of credit risk
  Concentration of credit risk is the risk of loss attributed to the magnitude of the City investment in a single
  issuer, by diversifying the investment portfolio so that the impact of potential losses from any one type of
  security or issuer will be minimized. The City has a concentration of credit risk policy that limits investment
  in commercial paper, eligible bankers’ acceptances and time certificates of deposit to 25 percent each of the
  total portfolio. The City has more than 5 percent of its investments in the following securities:

                                                                                 Percent of
                                       Security                               Total Investments
             Federal Home Loan Mortgage Corporation obligations                      7.4%
             Government National Mortgage Association obligations                    9.6%

  Custodial credit risk - deposits
  In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be
  returned to it. As of June 30, 2022, $12,371,824 of the City’s bank balance of $12,871,824 was exposed to
  custodial credit risk because it was uninsured and uncollateralized. The City’s investment policy sets certain
  credit requirements that a bank must meet for the City to deposit funds in it.



                                                         59
                                                         90
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE C—DEPOSITS AND INVESTMENTS—Continued

  Deposit and Investment Risks—Continued

  Custodial credit risk - investments
  This is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the
  value of its investments or collateral securities that are in the possession of an outside party. The City has a
  custodial credit risk policy for investments that requires that all investments that are held with a third-party
  for safekeeping be in the City’s name.

  Foreign currency risk
  The City is not authorized to invest in investments which have this type of risk.

  Restricted Assets
  Restrictions are placed on assets by bond ordinance and City Commission action. At June 30, 2022, restricted
  cash and investments in the Sewer and Water Fund of $101,000 and $728,000, respectively, were restricted
  by bond ordinance.


NOTE D—ASSETS MANAGED BY OTHERS

  As allowed by MCL 123.874 and MCL 128.4, the City is permitted to place monies in community
  foundations.

  The Funds
  The City has six funds with the Community Foundation of Muskegon County (Community Foundation).

    Lakeshore Trails Improvement Fund
    The Lakeshore Trails Improvement Fund was established by the City primarily to be used for the general
    support of the bike trails, which are located in the City of Muskegon. The agreement with the Community
    Foundation allows the use of the Fund’s income in accordance with the Community Foundation’s spending
    policy and principal in certain circumstances.

    Cemetery Perpetual Care Fund
    The City of Muskegon Cemetery Perpetual Care Fund was established by the City primarily to be used for the
    care and maintenance of the cemeteries that are operated by the City. The agreement with the Community
    Foundation allows the use of the Fund’s income in accordance with the Community Foundation’s spending
    policy and principal in certain circumstances.

    Pere Marquette and Margaret Drake Elliot Park Fund
    The Pere Marquette and Margaret Drake Elliot Park Fund (Marquette and Elliot Park Fund) was established by
    the City to be used for capital improvements at Pere Marquette and Margaret Drake Elliot Parks. The
    agreement with the Community Foundation allows the use of the Fund’s income in accordance with the
    Community Foundation’s spending policy and principal in certain circumstances.

    Darl and Kathleen Staley Charity Fund
    The Darl and Kathleen Staley Charity Fund (Staley Charity Fund) was established after the City received
    monies from the Staley’s estate. The Fund is to be used for capital improvements needs at City parks. The
    agreement with the Community Foundation allows the use of the Fund’s income in accordance with the
    Community Foundation’s spending policy and principal in certain circumstances.

    City of Muskegon Parks Fund
    The City of Muskegon Parks Fund (Muskegon Parks Fund) was established by the City to primarily be used
    for general maintenance and improvements to parks located in the City of Muskegon. The agreement with the
    Community Foundation allows the use of the Fund’s income in accordance with the Community Foundation’s
    spending policy and principal in certain circumstances.


                                                       60
                                                       91
                                                          City of Muskegon
                                          NOTES TO FINANCIAL STATEMENTS
                                                     June 30, 2022


NOTE D—ASSETS MANAGED BY OTHERS—Continued

  The Funds—Continued

    City of Muskegon Events and Sponsorships Fund
    The City of Muskegon Events and Sponsorships Fund (Events and Sponsorships Fund) was established after
    the Community Foundation received monies from donors intended to be used for various events within the
    City of Muskegon. The agreement with the Community Foundation allows the use of the Fund’s income in
    accordance with the Community Foundation’s spending policy and principal in certain circumstances.

  The Community Foundation invests the contributions to the funds in various types of marketable equity and debt
  securities, U.S. Treasuries, commercial paper, and certificates of deposit. The majority of investments are
  uninsured and uncollateralized.

  Reporting of the Assets of the Funds
  The investments held at the Community Foundation, which were contributed by the City to the funds along with
  the earnings on these investments, are reported at fair value as assets of the City. The contributions to these funds
  made by third party donors directly to the Community Foundation have been excluded from the assets of the City.

  Summary of the Community Foundation Funds
  A summary of revenues, expenses, and changes in the assets at fair value of the funds for the year ended June 30,
  2022 follows:
                                       Lakeshore
                                         Trails       Cemetery        Marquette       Staley          Muskegon        Events and
                                      Improvement     Perpetual       and Elliot      Charity          Parks         Sponsorships
                                         Fund         Care Fund       Park Fund        Fund            Fund             Fund             Totals
  Revenues
     Contributions                    $      2,155    $          -    $          -    $         -     $        -     $     28,006    $      30,161
     Dividends and interest                  1,733          37,167           2,407         11,099            619               11           53,036
     Realized and unrealized gain
      (loss) on investments                (13,227)       (158,498)        (17,993)        (83,654)        (4,675)              -         (278,047)
                                            (9,339)       (121,331)        (15,586)        (72,555)        (4,056)         28,017         (194,850)

  Expenses
     Grants and scholarships                    -                -           4,316               -             -           41,592           45,908
     Administration fees                      619            7,711           1,932           5,210           228              560           16,260

     Revenues over expenses                 (9,958)       (129,042)        (21,834)        (77,765)        (4,284)        (14,135)        (257,018)

  Total assets at beginning of year        78,543         1,456,616        115,338        512,550         28,597           14,688         2,206,332

  Total assets at end of year              68,585         1,327,574         93,504        434,785         24,313             553          1,949,314

  Less assets recorded as those
   of the Foundation                       (48,489)               -        (93,504)       (434,785)       (15,398)          (553)         (592,729)

  Assets reported on the Balance
   Sheet/Statement of Net Position    $    20,096     $ 1,327,574     $          -    $          -    $    8,915     $          -    $ 1,356,585


  The Board of Trustees of the Community Foundation has the power to modify any restriction or condition on the
  distribution of funds for any specified charitable purpose or to a specified organization if, in the sole judgment of
  the Board, such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent
  with the charitable needs of the community served. The authority to modify restrictions is sometimes referred to
  as “variance power” and is a legal standard imposed on all community foundations.



                                                                      61
                                                                      92
                                                City of Muskegon
                                  NOTES TO FINANCIAL STATEMENTS
                                             June 30, 2022


NOTE E—FAIR VALUE MEASUREMENTS

  The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation
  techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
  active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level
  3). The three levels of the fair value hierarchy are described below:

      Level 1    Inputs to the valuation methodology are unadjusted quoted prices for identical
                 assets or liabilities in active markets that the City has the ability to access.

      Level 2    Inputs to the valuation methodology include the following:

                 -   Quoted prices for similar assets or liabilities in active markets;
                 -   Quoted prices for identical or similar assets or liabilities in inactive markets;
                 -   Inputs other than quoted prices that are observable for the asset or liability;
                 -   Inputs that are derived principally from or corroborated by observable
                     market data by correlation or other means.

                 If the asset or liability has a specified (contractual) term, the level 2 input must be
                 observable for substantially the full term of the asset or liability.

      Level 3    Inputs to the valuation methodology are unobservable and significant to the fair
                 value measurement.

  The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest
  level of any input that is significant to the fair value measurement. Valuation techniques used need to
  maximize the use of observable inputs and minimize the use of unobservable inputs.

  Following is a description of the valuation methodologies used for assets measured at fair value. There have
  been no changes in the methodologies used at June 30, 2022.

      Money market funds: Valued at amortized cost, which approximates fair value.

      Negotiable certificates of deposit, US agency obligations, and commercial paper: Valued at the closing
      price reported on the active market on which the individual securities are traded.




                                                          62
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                                                City of Muskegon
                                  NOTES TO FINANCIAL STATEMENTS
                                             June 30, 2022


NOTE E—FAIR VALUE MEASUREMENTS—Continued

      External investment pools, MERS investment funds, and assets managed by others: The assets are
      valued based upon the City’s allocable share of the Michigan CLASS, MERS, and Community
      Foundation of Muskegon County (Pools) pooled investment portfolios. The allocable shares are based on
      the value of the underlying assets owned by the Pools, minus their liabilities.

      The assets managed by others are valued monthly by the Pools and are allocated based upon each
      organization’s calculated share of the Pools’ pooled investment portfolios. Each entity with an interest
      within the pooled investments receives statements from the Pools indicating the additions to the
      investments (via contributions), withdrawals from the investments (via grants), and the investment returns
      allocated via a unitization process. The City calculates the fair value of its share of the pooled investment
      assets held by the Pools based on the estimated fair value of the underlying assets. The Pools control the
      investments and make all management and investment decisions.

  The preceding methods described may produce a fair value calculation that may not be indicative of net
  realizable value or reflective of future fair values. Furthermore, while the City believes its valuation methods
  are appropriate and consistent with other market participants, the use of different methodologies or
  assumptions to determine the fair value of certain financial instruments could result in a different fair value
  measurement at the reporting date.

  The following table sets forth by level, within the fair value hierarchy, the City’s assets at fair value on a
  recurring basis as of June 30, 2022:

                                                   Assets at Fair Value as of June 30, 2022
                                           Level 1         Level 2           Level 3              Total

  Money market funds                   $            -     $      229,997      $        -      $      229,997
  Negotiable certificates of deposit        1,440,497                  -               -           1,440,497
  US agency obligations                     8,606,409                  -               -           8,606,409
  Commercial paper                            597,900                  -               -             597,900
  External investment pools                         -         14,913,867               -          14,913,867
  MERS investment funds                             -         22,146,026               -          22,146,026
  Assets managed by others                          -          1,356,585               -           1,356,585
  Total assets at fair value           $ 10,644,806       $ 38,646,475        $        -      $ 49,291,281




                                                        63
                                                        94
                                               City of Muskegon
                                  NOTES TO FINANCIAL STATEMENTS
                                             June 30, 2022


NOTE F—LEASES RECEIVABLE

  The City has entered into the following lease agreements as a lessor:

  Cell Towers
  The City leases the right to use space on land and buildings owned by the City to various third parties as part
  of three separate lease agreements for the operation of cell phone antennas. These lease terms are generally
  for 5 years with automatic renewals and the City receives monthly payments totaling $94,615, increasing by 3
  percent each year.

  Trinity Health Arena
  The City leases the right to use shared space at Trinity Health Arena to a third party as part of an agreement
  with a term of 5 years and with automatic renewals. The City receives monthly payments totaling $127,500,
  increasing by 4 percent each renewal period.

  The City also leases the right to use and manage restaurant space at Trinity Health Arena to various third
  parties as part of two separate lease agreements. These lease terms are generally for 5 years with automatic
  renewals and the City receives monthly payments totaling $49,034, increasing by 5-10 percent each year.

  Fire Station
  The City leases the right to use office space at the West Western Avenue Fire Station to a third party as part
  of an agreement with terms through December 2045. The City receives monthly payments totaling $465,667,
  which are tied to the reimbursement of payments on the City’s 2016 Limited Tax General Obligation
  Refunding and 2020A Capital Improvement Bonds at a rate of 20.24 percent and 100 percent of the bond
  payments attributable to improvements and additions of the fire station, respectively.

  For the year ended June 30, 2022, the City recognized $412,760 and $79,027 in lease revenue for
  governmental activities and business-type activities, respectively. For the year ended June 30, 2022, the City
  also recognized $223,157 and $15,588 in interest revenue for governmental activities and business-type
  activities, respectively. The City has deferred inflows of resources associated with these leases that will be
  recognized as revenue over the term of the leases. As of June 30, 2022, the balances of these deferred inflows
  of resources were $8,252,646 and $940,736 for governmental activities and business-type activities,
  respectively.

  The future minimum payments to be received for these leases are as follows:

               Year Ending        Governmental Activities           Business-type Activities
                June 30,          Principal     Interest            Principal      Interest
                  2023        $      384,081   $    258,752     $       83,003   $      14,451
                  2024               395,885        245,088             87,286          13,091
                  2025               408,699        230,893             72,822          11,725
                  2026               424,591        216,160             57,495          10,746
                  2027               447,353        200,622             60,484           9,804
                2028-2032          2,099,022        752,842            154,762          39,837
                2033-2037            845,416        536,767            175,718          27,377
                2038-2042          1,086,360        396,733            223,961          11,481
                2043-2047          1,023,496        235,271             25,205             118
                2048-2052            824,394        116,289                  -               -
                2053-2057            307,540         27,774                  -               -
                  2058                 5,809             24                  -               -
                              $ 8,252,646      $ 3,217,215      $     940,736    $    138,630



                                                      64
                                                      95
                                                   City of Muskegon
                                       NOTES TO FINANCIAL STATEMENTS
                                                  June 30, 2022


NOTE G—CAPITAL ASSETS

  Capital asset activity for the year ended June 30, 2022 was as follows:
                                                       Balance                                              Balance
                                                     July 1, 2021         Additions     Deductions       June 30, 2022
  Governmental activities:
    Capital assets, not being depreciated:
       Land                                         $    14,258,844   $        45,538   $            -   $    14,304,382
       Construction in progress                          29,095,524         7,078,678       28,208,708         7,965,494
     Total capital assets, not being depreciated         43,354,368         7,124,216       28,208,708        22,269,876
     Capital assets, being depreciated:
       Land improvements                                  5,446,304           532,932                -         5,979,236
       Leasehold improvements                               534,821                 -                -           534,821
       Buildings and improvements                        32,106,677        23,863,141                -        55,969,818
       Furniture, vehicles and equipment                 16,791,683         2,631,539           96,375        19,326,847
       Infrastructure                                    81,269,715         2,492,517        2,759,934        81,002,298
       Shared improvements                                6,905,293                 -                -         6,905,293
     Total capital assets, being depreciated            143,054,493        29,520,129        2,856,309       169,718,313
     Less accumulated depreciation:
       Land improvements                                  2,413,770           159,223                -         2,572,993
       Leasehold improvements                               497,384             5,674                -           503,058
       Buildings and improvements                        18,797,687           510,135                -        19,307,822
       Furniture, vehicles and equipment                 13,013,673           872,833           60,166        13,826,340
       Infrastructure                                    43,496,575         3,598,791        2,759,934        44,335,432
       Shared improvements                                5,492,580           345,265                -         5,837,845
     Total accumulated depreciation                      83,711,669         5,491,921        2,820,100        86,383,490
     Total capital assets, being
      depreciated, net                                   59,342,824        24,028,208          36,209         83,334,823
     Capital assets, net                            $ 102,697,192     $ 31,152,424      $ 28,244,917     $ 105,604,699
  Business-type activities:
    Capital assets, not being depreciated:
       Land                                         $       142,250   $             -   $            -   $       142,250
       Construction in progress                          11,912,532         8,394,483        5,482,857        14,824,158
     Total capital assets, not being depreciated         12,054,782         8,394,483        5,482,857        14,966,408
     Capital assets, being depreciated:
       Land improvements                                  1,951,913            34,439                -         1,986,352
       Buildings, improvements and systems              107,269,475         5,482,856                -       112,752,331
       Machinery and equipment                            3,320,032                 -                -         3,320,032
     Total capital assets, being depreciated            112,541,420         5,517,295                -       118,058,715
     Less accumulated depreciation:
       Land improvements                                  1,850,120            10,901                -         1,861,021
       Buildings, improvements and systems               56,527,098         2,578,528                -        59,105,626
       Machinery and equipment                            2,905,070            65,766                -         2,970,836
     Total accumulated depreciation                      61,282,288         2,655,195                -        63,937,483
     Total capital assets, being
      depreciated, net                                   51,259,132         2,862,100                -        54,121,232
     Capital assets, net                            $ 63,313,914      $ 11,256,583      $ 5,482,857      $ 69,087,640




                                                            65
                                                            96
                                              City of Muskegon
                                    NOTES TO FINANCIAL STATEMENTS
                                               June 30, 2022


NOTE G—CAPITAL ASSETS—Continued

  Depreciation
  Depreciation expense was charged to functions as follows:

   Governmental activities:
     Public representation services                                                          $       4,503
     Adminstrative services                                                                          2,832
     Public safety                                                                                 261,386
     Public works                                                                                   18,017
     Highways, streets and bridges                                                               4,073,665
     Community and economic development                                                             66,269
     Culture and recreation                                                                        539,484
     General administration                                                                         26,299
     Internal Service Fund depreciation                                                            499,466
                                                                                             $ 5,491,921
   Business-type activities:
     Sewer                                                                                   $     630,870
     Water                                                                                       1,916,908
     Marina and Launch Ramp                                                                        107,417
                                                                                             $ 2,655,195

                                                  Balance                                       Balance
                                                July 1, 2021    Additions       Deductions   June 30, 2022
   Component units:
     Capital assets, not being depreciated:
       Land                                     $    400,000    $          -    $       -    $     400,000
      Capital assets, being depreciated:
        Building and improvements                   3,798,258              -            -        3,798,258
      Less accumulated depreciation:
        Building and improvements                   3,035,729       172,648             -        3,208,377
      Total capital assets, being
         depreciated, net                            762,529        (172,648)           -          589,881
      Capital assets, net                       $ 1,162,529     $ (172,648)     $       -    $    989,881

  Depreciation expense was charged to economic development.




                                                      66
                                                      97
                                              City of Muskegon
                                  NOTES TO FINANCIAL STATEMENTS
                                             June 30, 2022


NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

  The composition of interfund balances as of June 30, 2022 is as follows:

    Due To/From Other Funds:
           Receivable Fund              Payable Fund                                     Amount
           General Fund                 Trinity Health Arena Fund                       $ 1,072,733
           General Fund                 Lead Abatement Fund                                  32,418
           General Fund                 Healthy Homes Fund                                    1,266
           General Fund                 Water Fund                                        1,014,690
           General Fund                 Marina and Launch Ramp Fund                         275,453
                                                                                        $ 2,396,560

  The outstanding balances between funds result from the payable funds having negative positions in the City’s
  cash and investment pool. In addition, the Brownfield Redevelopment Authorities owe the General Fund
  $64,211 for having a negative position in the City’s cash and investment pool.

  The Brownfield Redevelopment Authorities have also been advanced $1,046,980 from the City’s
  governmental activities as a long-term loan.

  Interfund Transfers:
     Transfers In                           Amount        Transfers Out                          Amount
     Nonmajor Governmental Funds
       Local Streets Fund               $     100,000     General Fund                       $    3,557,500
       Trinity Health Arena Fund              865,000
       Tree Replacement Fund                    2,500
       Farmers Market and
        Kitchen 242 Fund                        40,000
       Public Improvement Fund                  50,000
       Convention Center Fund                2,500,000
                                             3,557,500                                            3,557,500
     Internal Service Funds
         Public Service Building Fund         400,000     General Fund                             400,000
     General Fund                            5,798,549    State Grants Fund                       5,798,549

     State Grants Fund                         40,750     General Fund                                40,750

     Nonmajor Governmental Funds                          Nonmajor Governmental Funds
       Farmers Market and                                   Senior Millage Fund                     85,000
        Kitchen 242 Fund                       85,000       HOME Rehabilitation Fund               316,000
       Public Improvement Fund                316,000
                                              401,000                                              401,000

     Nonmajor Governmental Funds
       Lakeshore BID Fund                      35,000     Water Fund                                  35,000
                                        $ 10,232,799                                         $ 10,232,799


                                                         67
                                                         98
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE H—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS—Continued

  The General Fund transferred funds to the Trinity Health Arena Fund, Public Service Building Fund, and
  other funds for operation subsidies. The General Fund transferred funds to the Local Streets Fund and
  Convention Center Fund for capital purposes. The State Grants Fund transferred funds to the General Fund
  for various American Rescue Plan Act projects. The Senior Millage Fund transferred funds to the Farmers
  Market and Kitchen 242 Fund to provide services to seniors. Other transfers between funds were made to
  meet grant matching requirements or other operational needs.


NOTE I—SHORT-TERM DEBT

  Summary of Changes in Short-Term Liabilities
  The following is a summary of short-term liabilities activity for the City for the year ended June 30, 2022.

                                         Balance                                             Balance
                                       July 1, 2021         Additions     Deductions      June 30, 2022
  Governmental activities:
    Short-term note                   $ 1,108,007       $      233,503    $ 1,257,213     $      84,297

  The purpose of all short-term borrowings are to provide resources for infill housing within the City of
  Muskegon. The form of financing used is a short-term non-revolving draw note with amounts advanced at
  the City’s discretion. Interest amounts are at a variable interest rate of 1.25 percent above the 30 day LIBOR,
  adjusted monthly. Borrowed amounts will be repaid as infill housing units are sold with final payment being
  due three years from the closing date.




                                                      68
                                                      99
                                              City of Muskegon
                                   NOTES TO FINANCIAL STATEMENTS
                                              June 30, 2022


NOTE J—LONG-TERM DEBT

  Summary of Changes in Long-Term Liabilities
  The following is a summary of long-term liabilities activity for the City for the year ended June 30, 2022.

                                       Balance                                                Balance      Due Within
                                     July 1, 2021         Additions       Deductions       June 30, 2022    One Year
  Governmental activities:
    Public placement debt
       General obligation debt      $   29,670,000    $               -   $   1,145,000    $ 28,525,000    $    970,000
       Discount                           (135,650)                   -          (7,500)       (128,150)              -
       Premium                             962,327                    -         129,400         832,927               -
    Direct borrowings and
     direct placements
       Installment purchase
         agreements                              -          1,370,873           197,462        1,173,411        268,269
    Compensated absences                 2,286,388          1,944,694         1,819,970        2,411,112        482,200
        Governmental activities
         long-term liabilities      $ 32,783,065      $ 3,315,567         $ 3,284,332      $ 32,814,300    $ 1,720,469

  Business-type activities:
    Public placement debt
       Revenue obligations          $    9,056,453    $     6,585,012     $   1,266,750    $ 14,374,715    $   1,295,000
    Compensated absences                   270,451            336,577           288,146         318,882           63,700
        Business-type activities
         long-term liabilities      $ 9,326,904       $ 6,921,589         $ 1,554,896      $ 14,693,597    $ 1,358,700

  Component units:
    Public placement debt
       General obligation debt      $    1,325,000    $               -   $    245,000     $   1,080,000   $    255,000
       Premium                              27,248                    -         10,701            16,547              -
        Component unit long-
         term liabilities           $ 1,352,248       $               -   $   255,701      $ 1,096,547     $   255,000




                                                           69
                                                          100
                                               City of Muskegon
                                  NOTES TO FINANCIAL STATEMENTS
                                             June 30, 2022


NOTE J—LONG-TERM DEBT—Continued

  Public Placement Debt

  General Obligation Debt
  The City has issued general obligation debt to provide funds for the acquisition and construction of major
  capital facilities. General obligation debt is a direct obligation and pledges the full faith and credit of the City.
  This debt is generally issued as serial bonds with varying amounts of principal maturing each year. Certain
  debt issued by the City’s component units is also backed by the full faith and credit of the City if there is a
  shortfall in tax increment revenues.

  General obligation debt outstanding as of June 30, 2022 is as follows:

                                                       Original                           Date of
                                                      Borrowing        Interest Rate      Maturity           Balance
  General obligation debt:
    Governmental activities:
       2016 Limited Tax General Obligation
        Refunding Bonds                              $     4,535,000      3% - 4%        October 2032    $        3,510,000
       2019 Capital Improvement Bonds                     19,420,000   1.88% - 3.58%    December 2049            19,040,000
       2020A Capital Improvement Bonds                     4,325,000     2.5% - 5%       October 2040             4,005,000
       2020B Capital Improvement Bonds                     2,055,000    .68% - 3.2%      October 2041             1,970,000
                                                                                                         $ 28,525,000

     Component units:
       2012 LDFA Tax Increment Refunding Bonds       $     4,100,000     3% - 4%        November 2025    $ 1,080,000

  Revenue Obligations
  The City has issued bonds where the income derived from the acquired or constructed assets is pledged to pay
  debt service. Revenue obligations outstanding as of June 30, 2022 are as follows:

                                                          Original                         Date of
                                                         Borrowing      Interest Rate      Maturity              Balance
  Revenue obligations:
    Business-type activities:
       2004 Drinking Water State Revolving Fund       $ 13,900,000         2.13%          October 2025       $     3,265,000
       2019 Water Supply System Junior Lien Bond         2,000,000           2%           October 2025             1,535,000
       2019 Sanitary Sewer System Junior Lien Bond      11,500,000           2%           October 2033             2,755,000
       2020 Water Supply System Junior Lien Bond         3,829,101           2%            April 2041              3,294,101
       2020 Sanitary Sewer System Junior Lien Bond       4,620,614           2%            April 2041              3,525,614
                                                                                                             $ 14,374,715

  The City has pledged future water customer revenues, net of specified operating expenses, to repay the 2004
  Drinking Water State Revolving Fund Loan. Proceeds from the issuance were used to make improvements to
  the City’s water supply system. The bond is payable solely from water customer net revenues and is payable
  through 2025. Annual principal and interest payments on the bond are expected to require less than 48
  percent of net revenues through 2025. The total principal and interest remaining to be paid on the bond is
  $3,405,517. Principal and interest paid for the year ended June 30, 2022 and total customer net revenues were
  $852,616 and $1,770,461, respectively.

  The City was in compliance in all material respects with all the revenue bond ordinances at June 30, 2022.


                                                          70
                                                         101
                                                  City of Muskegon
                                    NOTES TO FINANCIAL STATEMENTS
                                               June 30, 2022


NOTE J—LONG-TERM DEBT—Continued

  Public Placement Debt—Continued

  Installment Purchase Agreements
  The City has entered into an installment agreement for a ladder truck in 2021. The installment purchase
  agreement is secured by the equipment purchase if the City defaults under the agreement. Installment
  purchase agreements outstanding as of June 30, 2022 are as follows:

                                                            Original                             Date of
                                                           Borrowing        Interest Rate        Maturity          Balance
  Installment purchase agreements:
     Governmental activities:
         2021 Equipment Installment Loan                   $    1,370,873       1.78%           October 2025   $ 1,173,411

  For governmental activities, pension liabilities (i.e. net pension and OPEB liabilities), claims and judgments
  and compensated absences are generally liquidated by the General Fund.

  In 2005, the County of Muskegon began making improvements to the regional sewer treatment facilities. The
  project was funded with $17,500,000 bonds issued through the State of Michigan Clean Water Revolving
  Fund Loan Program. The County operates the system and makes payments on the bonds with user charges to
  the local units. The City has pledged its limited tax full faith and credit for the payment of its portion of the
  debt should user charges collected by the County be insufficient to make the debt payments. The City’s
  portion of the debt on June 30, 2022 was approximately $1,813,000. The City is unaware of any
  circumstances that would cause a shortfall in the near future.

  Annual debt service requirements to maturity for public placement debt and for direct borrowings and direct
  placements outstanding as of June 30, 2022 follow:

                                     Governmental Activities
                                                    Direct Borrowings and                       Business-type Activities
   Year Ending         Public Placement Debt           Direct Placements                         Public Placement Debt
    June 30,          Principal      Interest      Principal        Interest                    Principal      Interest
      2023        $       970,000   $        957,231   $        268,269     $    18,471     $     1,295,000    $     283,870
      2024              1,050,000            926,991            273,023          13,717           1,330,000          256,720
      2025              1,100,000            892,982            277,860           8,880           1,355,000          228,948
      2026              1,140,000            856,998            282,784           3,956           1,380,000          200,607
      2027              1,180,000            817,356             71,475             210             550,000          180,882
    2028-2032           6,105,000          3,399,345                  -               -           2,925,000          734,260
    2033-2037           3,890,000          2,570,905                  -               -           3,210,000          430,510
    2038-2042           4,440,000          1,913,763                  -               -           2,329,715          107,546
    2043-2047           4,980,000          1,117,090                  -               -                   -                -
    2048-2050           3,670,000            201,554                  -               -                   -                -
                  $ 28,525,000      $ 13,654,215       $ 1,173,411          $   45,234      $ 14,374,715       $ 2,423,343




                                                                71
                                                               102
                                               City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE J—LONG-TERM DEBT—Continued

  Public Placement Debt—Continued

                                                        Component Units
                              Year Ending            Public Placement Debt
                               June 30,             Principal      Interest
                                   2023         $       255,000   $        28,575
                                   2024                 265,000            20,775
                                   2025                 275,000            12,675
                                   2026                 285,000             4,275
                                   2027                       -                 -
                                 2028-2032                    -                 -
                                 2033-2037                    -                 -
                                 2038-2042                    -                 -
                                 2043-2047                    -                 -
                                 2048-2050                    -                 -
                                                $ 1,080,000       $       66,300

  Annual debt service requirements to maturity by type of debt as of June 30, 2022 follow:

                                                                                       Installment
                                                                    Revenue             Purchase
                              General Obligation Debt              Obligations         Agreements
            Year Ending     Governmental    Component             Business-type       Governmental
             June 30,        Activities        Units                Activities          Activities
                2023         $     1,927,231        $   283,575       $   1,578,870   $    286,740
                2024               1,976,991            285,775           1,586,720        286,740
                2025               1,992,982            287,675           1,583,948        286,740
                2026               1,996,998            289,275           1,580,607        286,740
                2027               1,997,356                  -             730,882         71,685
              2028-2032            9,504,345                  -           3,659,260              -
              2033-2037            6,460,905                  -           3,640,510              -
              2038-2042            6,353,763                  -           2,437,261              -
              2043-2047            6,097,090                  -                   -              -
              2048-2050            3,871,554                  -                   -              -
                             $ 42,179,215           $ 1,146,300       $ 16,798,058    $ 1,218,645




                                                         72
                                                        103
                                               City of Muskegon
                                NOTES TO FINANCIAL STATEMENTS
                                           June 30, 2022


NOTE K—OTHER INFORMATION

  Risk Management
  The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
  errors and omissions; injuries to employees and natural disasters. The City manages its liability and property
  risk by participating in the Michigan Municipal Risk Management Authority (MMRMA), a public entity risk
  pool providing property and liability coverage to its participating members. The City pays an annual
  premium to MMRMA for its insurance coverage. The MMRMA is self-sustaining through member
  premiums and provides, subject to certain deductibles, occurrence-based casualty coverage for each incident
  and occurrence-based property coverage to its members by internally assuring certain risks and reinsuring
  risks through commercial companies. A $150,000 deductible is maintained to place the responsibility for
  small charges with the City. Settled claims resulting from these risks have not exceeded insurance coverage
  in any of the past three fiscal years. Changes in the fund’s claim liability amount in 2022 and 2021 were as
  follows:

                                                    Current Year
                                  Balance            Claims and                                      Balance
                               at Beginning          Changes in                Claims                at End
    Year Ended                    of Year            Estimates                Payments               of Year
  June 30, 2022                $     103,646         $     556,421        $      173,314         $     486,753
  June 30, 2021                      133,364               138,186               167,904               103,646

  The City manages its workers' compensation risk by participating in the Michigan Municipal Workers'
  Compensation Fund (MMWCF), a public entity risk pool providing workers' compensation coverage to its
  participating members. The City pays an annual premium to MMWCF for its workers' compensation
  coverage. The MMWCF is self-sustaining through member premiums and provides statutory workers'
  compensation coverage to its members by internally assuring certain risks and reinsuring risks through
  commercial companies. Settled claims resulting from these risks have not exceeded insurance coverage in
  any of the past three fiscal years.

  The City is self-insured for employee health care benefits for those employees selecting the City plan over
  other options. Under this plan, the General Insurance Fund provides coverage for up to a maximum of up to
  $500,000 per covered individual’s lifetime. As of June 30, 2022, the claims liability including incurred but
  not reported claims was $33,172. A liability was recorded in the accompanying financial statements for the
  estimated claims liability. The claims liability was based on past experience, a review of pending claims and
  other social and economic factors. The above estimate was not discounted and there were no outstanding
  claims for which annuity contracts have been purchased in the claimant’s name. No significant reductions in
  insurance coverage were made in the last fiscal year. Settled claims have not exceeded the commercial
  coverage in any of the past three fiscal years. Changes in the fund’s claim liability amount in 2022 and 2021
  were as follows:

                                                    Current Year
                                  Balance            Claims and                                      Balance
                               at Beginning          Changes in                Claims                at End
    Year Ended                    of Year            Estimates                Payments               of Year
  June 30, 2022                $      63,118         $ 4,738,715          $     4,768,661        $      33,172
  June 30, 2021                      111,410           4,414,715                4,463,007               63,118



                                                      73
                                                     104
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE K—OTHER INFORMATION—Continued

  Contingencies
  Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
  principally the federal and state governments. Any disallowed claims, including amounts already collected,
  may constitute a liability to the applicable funds. The amount, if any, of expenditures that may be disallowed
  by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be
  immaterial.

  The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
  determinable, in the opinion of the City's counsel the resolution of these matters will not have a material
  adverse effect on the financial condition of the City.

  Commitments
  The City has several contracts for street projects including water and sewer system improvements and other
  capital improvements as of June 30, 2022 with a remaining amount of approximately $13,605,000.
  Approximately $1,722,000 and $1,351,000 of the commitments in the Sewer and Water funds, respectively,
  are being financed by long-term debt with the remainder being paid out of available funds as follows:

               Fund                                                                   Amount
         General                                                                  $      621,000
         Major Street and Trunkline                                                    4,078,000
         Mercy Health Arena                                                              833,000
         Public Improvement                                                              105,000
         State Grant                                                                   2,203,000
         Sewer                                                                         2,237,000
         Water                                                                         3,528,000
                                                                                  $ 13,605,000

  The City has also committed to allocating 35 percent of local marihuana excise taxes received to their
  Michigan Social Equity Program. As of June 30, 2022, the City has committed approximately $189,000 of
  fund balance in the General Fund to this program.




                                                       74
                                                      105
                                               City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE L—TAX ABATEMENTS

  Industrial Facilities Exemption
  The City entered into property tax abatement agreements with local businesses under the Plant Rehabilitation
  and Industrial Developments Act, (known as the Industrial Facilities Exemptions or IFTs) PA 198 of 1974, as
  amended. The IFTs provides a tax incentive to manufacturers to enable renovation and expansion of aging
  facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities.
  Properties qualifying for IFT status are taxed at half the local property tax millage rate applicable to other real
  and personal property in the City for a term of one to twelve years as determined by the City.

  For the year ended June 30, 2022, the City abated property taxes revenues totaling $107,143 under this
  program.

  Brownfield Redevelopment Authority
  The City entered into property tax abatement agreements with local businesses under the Brownfield
  Redevelopment Act, PA 381 of 1996, as amended. Brownfield properties are those in which the
  redevelopment or reuse of property may be complicated by the presence or perception of contamination.
  Brownfields use tax increment financing where growth in taxable value above the initial value of the
  Brownfield is captured and used to repay the developer for remediation costs.

  For the year ended June 30, 2022, the City abated property taxes revenues totaling $185,801 under this
  program.

  Payment in Lieu of Taxes (PILOT)
  The City uses the State Housing Development Authority Act, PA 346 of 1966, as amended, to enter into
  agreements that provide for a service charge in lieu of taxes to encourage the development of housing of its
  elderly citizens of low and moderate income.

  For the year ended June 30, 2022, the City abated property taxes revenues totaling $149,880 under this
  program.


NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN

  Defined Benefit Pension Plan

  Plan Description
  The City’s defined benefit pension plan provides certain retirement, disability and death benefits to plan
  members and beneficiaries. The City participates in the Municipal Employees Retirement System (MERS) of
  Michigan. MERS is an agent multiple-employer, statewide public employee pension plan established by the
  Michigan Legislature under Public Act 135 of 1945 and administered by a nine member Retirement Board.
  MERS issues a publicly available financial report that includes financial statements and required
  supplementary information. This report may be obtained accessing the MERS website at
  www.mersofmich.com.

  Benefits Provided
  Public Act 427 of 1984, as amended, established and amends the benefit provisions of the participants in
  MERS. The Plan covers all full-time employees hired prior to January 2005. Beginning in January 2005, the
  various employee divisions began to be closed. By July 2006, all employee divisions were closed.




                                                        75
                                                       106
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued

  Defined Benefit Pension Plan—Continued

  Benefits Provided—Continued
  Benefits provided are based on the following by employee division:

                                                                Normal                           Reduced
                                                  Vesting      Retirement       Early              Early
                                 Mulitplier       Period          Age         Retirement        Retirement
   Non-Union General              2.25%*          5 years          60            55/25         50/25 or 55/15
   Non-Union Police               3.00%           10 years         55            53/25             50/25
   Clerical                       2.25%*          5 years          60            55/25         50/25 or 55/15
   Department of Public Works     2.25%*          10 years         60            55/30         50/25 or 55/15
   Police Patrol                  3.00%*          10 years         55            50/25         Not applicable
   Police Command                 3.00%           10 years         55            50/25         Not applicable
   Fire                           2.75%           10 years         55            53/25             50/25

  *Effective January 2017, the multiplier for Non-Union General and Department of Public Works was changed
  to 2.00% and the multiplier for Police Patrol was changed to 2.675%. Effective December 2018, the
  multiplier for Clerical was changed to 2.00%.

  Final average compensation is calculated based on 3 years.

  Employees Covered by Benefit Terms
  At December 31, 2021 valuation date, the following employees were covered by the benefit terms:

   Inactive employees or beneficiaries currently receiving benefits              337
   Inactive employees entitled to but not yet receiving benefits                  33
   Active employees                                                               62
       Total employees covered by MERS                                           432

  Contributions
  The City is required to contribute amounts at least equal to the actuarially determined rate, as established by
  the MERS Retirement Board. The actuarially determined rate is the estimated amount necessary to finance
  the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded
  accrued liability. The City may establish contribution rates to be paid by its covered employees.

  For the year ended June 30, 2022, the City had a flat-dollar employer contribution to the Plan of $3,724,080
  in lieu of a percentage of covered employee payroll, as the Plan is closed to new employees. Member
  contributions range from 4 percent to 6.5 percent.

  Net Pension Liability
  The City’s net pension liability was measured as of December 31, 2021, and the total pension liability used to
  calculate the net pension liability was determined by an annual actuarial valuation as of that date.




                                                       76
                                                      107
                                             City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued

  Defined Benefit Pension Plan—Continued

  Actuarial Assumptions
  The total pension liability in the December 31, 2021 actuarial valuation was determined using the following
  actuarial assumptions, applied to all periods included in the measurement:

   Inflation                      2.5 percent
   Salary increases               3.0 percent in the long-term
   Investment rate of return      7.00 percent, net of investment and administrative expenses
                                  including inflation

  Although no specific price inflation assumptions are needed for the valuation, the 3.0 percent long-term wage
  inflation assumption would be consistent with a price inflation of 3-4 percent. Mortality rates used were
  based on a version of Pub-2010 and fully generational MP-2019.

  The actuarial assumptions used in valuation were based on the results of the most recent actuarial experience
  study of 2014 through 2018.

  The long-term expected rate of return on pension plan investments was determined using a model method in
  which the best-estimate ranges of expected future real rates of return (expected returns, net of investment and
  administrative expenses and inflation) are developed for each major asset class. These ranges are combined
  to produce the long-term expected rate of return by weighting the expected future real rates of return by the
  target asset allocation percentage and by adding expected inflation. The target allocation and best estimates
  of geometric real rates of return for each major asset class are summarized in the following table:

                                                Target          Long-Term                         Long-Term
                                              Allocation         Expected                          Expected
                                Target       Gross Rate of      Gross Rate        Inflation       Real Rate
  Asset Class                  Allocation       Return           of Return       Assumption        of Return

  Global equity                    60.0%              7.00%            4.20%            2.50%            2.70%
  Global fixed income              20.0%              4.50%            0.90%            2.50%            0.40%
  Private assets                   20.0%              9.50%            1.90%            2.50%            1.40%
  Total                          100.0%                               7.00%                             4.50%

  Discount Rate
  The discount rate used to measure the total pension liability was 7.25 percent for 2021. The current discount
  rate shown for GASB 68 purposes is higher than the MERS assumed rate of return. This is because for
  GASB 68 purposes, the discount rate must be gross of administrative expenses, whereas for funding purposes,
  it is net of administrative expense. The projection of cash flows used to determine the discount rate assumed
  that employer and employee contributions will be made at rates agreed upon for employees and the actuarially
  determined rate for employers. Based on those assumptions, the pension plan's fiduciary net position was
  projected to be available to pay all projected future benefit payments of current active and inactive employees.
  Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
  projected benefit payments to determine the total pension liability.




                                                      77
                                                     108
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued

  Defined Benefit Pension Plan—Continued

  Changes in the Net Pension Liability

                                                                Increase (Decrease)
                                                                        Plan        Net Pension
                                                 Total Pension        Fiduciary       Liability
                                                  Liability (a)      Position (b)      (a)-(b)
  Balance at January 1, 2021                     $ 125,918,365       $ 93,025,193   $ 32,893,172

  Changes for the year
    Service cost                                           529,832                 -              529,832
    Interest                                             9,237,064                 -            9,237,064
    Difference between expected and
     actual experience                                     256,636                 -              256,636
    Changes in assumptions                               4,396,829                 -            4,396,829
    Contributions - employer                                     -         3,313,056           (3,313,056)
    Contributions - employee                                     -           304,680             (304,680)
    Net investment income                                        -        12,779,029          (12,779,029)
    Administrative expenses                                      -          (146,581)             146,581
    Benefit payments including refund of
     employee contributions                            (9,285,923)        (9,285,923)                    -
        Net changes                                      5,134,438         6,964,261            (1,829,823)
  Balance at December 31, 2021                   $ 131,052,803         $ 99,989,454          $ 31,063,349

  Sensitivity of the Net Pension Liability to Changes in the Discount Rate
  The following presents the net pension liability of the City, calculated using the discount rate of 7.25 percent,
  as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-
  percentage-point lower (6.25 percent) or 1-percentage-point higher (8.25 percent) than the current rate:

                                       1% Decrease           Current Discount               1% Increase
                                         (6.25%)              Rate (7.25%)                    (8.25%)

  City's net pension liability     $        45,217,643       $        31,063,349        $        19,159,352




                                                       78
                                                      109
                                             City of Muskegon
                                NOTES TO FINANCIAL STATEMENTS
                                           June 30, 2022


NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued

  Defined Benefit Pension Plan—Continued

  Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
  For the year ended June 30, 2022, the City recognized pension expense of $5,712,267. At June 30, 2022, the
  City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
  following sources:

                                             Deferred Outflows        Deferred Inflows
                                               of Resources            of Resources

  Net differences between projected
   and actual net investment income           $                 -      $       6,950,178
  Contributions subsequent to the
   measurement date*                                   1,862,040                       -
       Total                                  $       1,862,040        $     6,950,178

  *The amount reported as deferred outflows of resources resulting from contributions subsequent to the
  measurement date will be recognized as a reduction in the net pension liability for the year ending June 30,
  2023.

  Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will
  be recognized in pension expense as follows:

                               Year Ending
                                June 30,                                Amount
                                    2023                              $ (827,997)
                                    2024                               (2,930,530)
                                    2025                               (2,003,322)
                                    2026                               (1,188,329)

  Payables to the Pension Plan
  At June 30, 2022, the City reported a payable of $329,476 for the outstanding amount of contributions to the
  pension plan required for the year ended June 30, 2022.




                                                      79
                                                     110
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE M—EMPLOYEE RETIREMENT SYSTEM AND PENSION PLAN—Continued

  Defined Contribution Pension Plan
  The City also maintains a defined contribution plan offered by MERS for its full-time employees hired after
  the defined benefit plan was closed to new participants.

  Benefit terms, including contribution requirements, for the MERS defined contribution plan are established
  and may be amended by the City Commission as determined by negotiated labor contracts. The City is
  required to contribute 3 percent to 13 percent of a qualified employees’ annual compensation each year
  depending on employee group. Qualified employees are required to contribute 0 percent to 8 percent of
  annual compensation depending on employee group. For the year ended June 30, 2022, City and employee
  contributions were $1,225,250 and $520,495, respectively.

  Employees are immediately vested in their own contributions and earnings on those contributions and become
  vested in City contributions and earnings on City contributions by 20 percent for each full year of service,
  leaving employees fully vested after five years of service. Nonvested City contributions are forfeited upon
  termination of employment. Such forfeitures are used to cover a portion of the pension plan’s administrative
  expenses. For the year ended June 30, 2022, forfeitures reduced the City’s pension expense by $83,099.

  Deferred Compensation Plan
  The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
  Code Section 457. The Plan, available to all full-time employees at their option, permits participants to defer
  a portion of their salary until future years. Payments from the deferred compensation plan are not available to
  participants until termination, retirement, death, or unforeseeable emergency. Active participants are allowed
  to borrow from their accumulated assets for limited purposes such as family education costs, medical costs, or
  down payment for a new home. The City must approve program loans.

  The Plan has created a trust for the exclusive benefit of the Plan’s participants and beneficiaries under rules
  provided by Internal Revenue Code Section 401(f).


NOTE N—OTHER POSTEMPLOYMENT BENEFITS

  Retiree Healthcare Plan

  Plan Description
  The City’s defined benefit OPEB Plan, the City of Muskegon Retiree Healthcare Plan (OPEB Plan), provides
  healthcare benefits to certain employees and their spouses upon retirement. The Plan is a single-employer
  defined benefit plan administered by the City Commission. The benefits are provided under collective
  bargaining agreements and at the discretion of the City Commission. The OPEB Plan does not issue a
  publicly available report.




                                                       80
                                                      111
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE N—OTHER POSTEMPLOYMENT BENEFITS—CONTINUED

  Retiree Healthcare Plan—Continued

  Benefits Provided
  The OPEB Plan provides medical and dental insurances for eligible retirees and spouses who meet the
  following criteria:

                                                                                Normal
                                                                   Vesting     Retirement         Early
                                           Eligibility              Period        Age           Retirement
  Non-Union General               Hired before January 1, 2011      5 years         60             55/25
  Non-Union Police                Hired before January 1, 2011     10 years         55             53/25
  Clerical                        Hired before January 1, 2009     10 years         60             55/30
  Department of Public Works      Hired before January 1, 2011     10 years         60             55/30
  Police Patrol                   Hired before January 1, 2012     10 years         55             50/25
  Police Command                  Hired before January 1, 2010     10 years         55             50/25
  Fire                            Hired before January 1, 2010     10 years         55             53/25

  Benefits are provided through a third party insurer.

  Employees Covered by Benefit Terms
  At the December 31, 2021 valuation, the following employees were covered by the benefit terms:

                  Active members                                                           81
                  Inactive members                                                         31
                  Retirees and beneficiaries                                              309
                      Total employees covered by OPEB Plan                                421

  Contributions
  The OPEB Plan’s funding policy is that the City will contribute any required amounts as determined by an
  annual actuarial valuation as a reference but not as a definitive requirement. There are no long-term contracts
  for contributions to the OPEB Plan. The OPEB Plan has no legally required reserves. For the year ended
  June 30, 2022, the City made payments for postemployment healthcare benefits of $650,383.

  Net OPEB Liability
  The City’s net OPEB liability was measured as of December 31, 2021, and the total OPEB liability used to
  calculate the net OPEB liability was determined by an actuarial valuation as December 31, 2021.




                                                          81
                                                         112
                                                 City of Muskegon
                                   NOTES TO FINANCIAL STATEMENTS
                                              June 30, 2022


NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued

  Retiree Healthcare Plan—Continued

  Actuarial Assumptions
  The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following
  actuarial assumptions, applied to all periods included in the measurement:

  Inflation                      2.5 percent
  Salary increases               0.0 percent
  Investment rate of return      7.35 percent (including inflation), net of administrative and investment expenses
  Healthcare cost trend rates    Pre-Medicare: 7.25 percent graded down by .25 per year to an ultimate rate of 4.5 percent
                                 Post-Medicare: 5.5 percent graded down by .25 per year to an ultimate rate of 4.5 percent

  Mortality
  Mortality rates for police and fire were as set forth in the Public Safety 2010 Employee and Healthy Retiree,
  headcount weighted, MP-2021 improvement scale. Mortality rates for others were as set forth in the Public
  General 2010 Employee and Healthy Retiree, headcount weighted, MP-2021 improvement scale.

  Investment Rate of Return
  The long-term rate of return on retirement plan investments was determined using a building-block method in
  which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB Plan
  investment expense and inflation) are developed for each major asset class. These ranges are combined to
  produce the long-term expected rate of return by weighting the expected future real rates of return by the
  target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of
  return for each major asset class included in the OPEB Plan’s target asset allocation are summarized in the
  following table:

                                                 Target           Long-Term                           Long-Term
                                               Allocation          Expected                            Expected
                                 Target       Gross Rate of       Gross Rate         Inflation        Real Rate
  Asset Class                   Allocation       Return            of Return        Assumption         of Return

  Global equity                     60.0%               7.75%            4.65%             2.50%            3.15%
  Global fixed income               20.0%               3.75%            0.75%             2.50%            0.25%
  Private investments               20.0%               9.75%            1.95%             2.50%            1.45%
  Total                           100.0%                                7.35%                              4.85%

  Discount Rate
  The discount rate used to measure the total OPEB liability was 7.35 percent. The projection of cash flows
  used to determine the discount rate assumed that the City will make future contributions at levels at least as
  high as the 2021 contribution up to 8 percent higher per year. Based on this assumption, the OPEB Plan’s
  fiduciary net position was projected to be sufficient to make projected future benefit payments of current plan
  members. For projected benefits that are covered by projected assets, the long-term expected rate was used to
  discount the projected benefits. From the year that benefit payments were not projected be covered by the
  projected assets (the “depletion date”, not applicable for this plan), projected benefits were discounted at a
  discount rate reflecting a 20-year AA/Aa tax-exempt municipal bond yield. A single equivalent discount rate
  that yields the same present value of benefits is calculated. This discount rate is used to determine the total
  OPEB liability. As of December 31, 2020 the discount rate used to value OPEB liabilities was 6.24 percent.




                                                          82
                                                         113
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued

  Retiree Healthcare Plan—Continued

  Changes in the Net OPEB Liability

                                                                  Increase (Decrease)
                                                                                            Net OPEB
                                                Total OPEB          Plan Fiduciary           Liability
                                                 Liability (a)        Position (b)            (a)-(b)
  Balance at January 1, 2021                    $ 32,757,983         $ 22,917,388          $ 9,840,595

  Changes for the year
     Service cost                                      142,556                     -            142,556
     Interest                                        1,999,639                     -          1,999,639
     Difference between expected and
      actual experience                             (2,420,665)                  -           (2,420,665)
     Changes of assumptions                         (2,771,809)                  -           (2,771,809)
     Contributions - employer                                -           1,767,843           (1,767,843)
     Net investment income                                   -           2,574,713           (2,574,713)
     Administrative expenses                                 -             (47,967)              47,967
     Benefit payments including refund of
      employee contributions                        (1,710,064)         (1,710,064)                   -
         Net changes                                (4,760,343)          2,584,525           (7,344,868)
  Balance at December 31, 2021                  $ 27,997,640         $ 25,501,913          $ 2,495,727

  Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
  The following presents the net OPEB liability of the City, calculated using the discount rate of 7.35 percent,
  as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-
  percentage-point lower (6.35 percent) or 1-percentage-point higher (8.35 percent) than the current rate:

                                      1% Decrease           Current Discount               1% Increase
                                        (6.35%)              Rate (7.35%)                    (8.35%)

  City's net OPEB liability       $          5,123,437      $          2,495,727       $           271,550




                                                       83
                                                      114
                                             City of Muskegon
                                NOTES TO FINANCIAL STATEMENTS
                                           June 30, 2022


NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued

  Retiree Healthcare Plan—Continued

  Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate
  The following presents the net OPEB liability of the City, calculated using the healthcare cost trend rate for
  pre-Medicare of 7.25 percent, decreasing to 4.5 percent and post-Medicare of 5.5 percent decreasing to 4.5
  percent, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost
  trend rates that are 1-percentage-point lower (6.25 percent decreasing to 3.5 percent or 4.5 percent decreasing
  to 3.5 percent) or 1-percentage-point higher (8.25 percent decreasing to 5.5 percent or 6.5 percent decreasing
  to 5.5 percent) than the current rate:

                                                                  Current
                                                               Healthcare Cost
                                      1% Decrease               Trend Rate                1% Increase

  City's net OPEB liability       $           310,673          $      2,495,727       $        5,044,676

  OPEB Plan Fiduciary Net Position
  Detailed information about the OPEB Plan’s fiduciary net position is not available in a separately issued
  financial report. For purposes of measuring the net OPEB liability, deferred outflows of resources and
  deferred inflows of resources related to OPEB, and OPEB expenses, information about the fiduciary net
  position of the OPEB Plan and additions to/deductions from the City’s fiduciary net position have been
  determined on the same basis as they are reported by the City. For these purposes, benefit payments
  (including refunds of employee contributions) are recognized when due and payable in accordance with the
  benefit terms. Investments are reported at fair value.

  OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
  For the year ended June 30, 2022, the City recognized OPEB expense of ($3,582,893). At June 30, 2022, the
  City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
  following sources:

                                                         Deferred Outflows of         Deferred Inflows of
                                                             Resources                    Resources
  Differences in experience                              $                 -          $          544,181
  Changes in assumptions                                                   -                     623,120
  Net difference between projected
   and actual net investment income                                               -              1,472,132
  Contributions subsequent to the
   measurement date*                                                   1,017,232                           -
        Total                                              $          1,017,232           $     2,639,433

  *The amount reported as deferred outflows of resources resulting from contributions subsequent to the
  measurement date will be recognized as a reduction in the net pension liability for the year ending June 30,
  2023.




                                                      84
                                                     115
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE N—OTHER POSTEMPLOYMENT BENEFITS—Continued

  Retiree Healthcare Plan—Continued

  OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
  OPEB—Continued
  Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will
  be recognized in OPEB expense as follows:

                                 Year Ending
                                  June 30,                              Amount
                                     2023                             $ (1,355,158)
                                     2024                                 (645,978)
                                     2025                                 (409,423)
                                     2026                                 (228,874)

  Payables to the OPEB Plan
  At June 30, 2022, the City did not have a payable to the OPEB Plan.

  Healthcare Savings Plan
  The City also maintains a defined contribution OPEB Plan (Health Care Savings Plan or HCSP) which
  provides certain health care benefits to plan member and legal dependents upon termination of employment.
  The HCSP covers all City employees hired after July 1, 2012 in lieu of the traditional retiree healthcare plan.
  The City participates in the Municipal Employees Retirement System (MERS) of Michigan. MERS is an
  agent multiple employer, statewide public employee defined contribution OPEB Plan established by the
  Michigan Legislature under Public Act 135 of 1945 and administered by a nine-member Retirement Board.
  Public Act 427 of 1984, as amended, establishes and amends the benefit provisions of the participants in
  MERS. MERS issues a publicly available financial report that includes financial statements and required
  supplementary information. This report may be obtained accessing the MERS website at
  www.mersofmich.com.

  Depending on employee group, the Plan covers all qualified City employees hired after January 2009 to
  December 2012 in lieu of the traditional retiree healthcare plan. The City is required to contribute 1 or 2
  percent of a qualified employees’ annual compensation each year depending on employee group. Qualified
  employees are also required to contribute 1 or 2 percent of annual compensation. Qualified employees are
  also required to contribute 1 or 2 percent of annual compensation. Additionally, some employees, regardless
  of hire date, may make voluntary contributions to the HCSP.

  Employees are immediately vested in all contributions and earnings of those contributions.

  For the year ended June 30, 2022, City and employee contributions were $530,720 and $248,630,
  respectively.




                                                       85
                                                      116
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022


NOTE O—CHANGE IN ACCOUNTING PRINCIPLE

  For the year ended June 30, 2022, the City implemented the following new pronouncement: GASB Statement
  No. 87, Leases.

  Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, was issued by the GASB in
  June 2017. The objective of this Statement is to increase the usefulness of governments’ financial statements
  by requiring recognition of certain lease assets and liabilities for leases that previously were classified as
  operating leases and recognized as inflows of resources or outflows of resources based on the payment
  provisions of the contract. It establishes a single model for lease accounting based on the foundational
  principle that leases are financings of the right to use the underlying asset. Under this Statement, a lessee is
  required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to
  recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and
  consistency of information about governments’ leasing activities.

  The restatement of beginning of the year has no impact on net position or fund balance. The change in
  receivables and deferred inflows are as follows:

                                                            Balance Sheet - General Fund
                                                       Leases Receivable     Deferred Inflows
  Balances as of July 1, 2021, as previously stated    $                   -     $                   -
  Adoption of GASB Statement 87                                    4,114,819                4,114,819
  Balances as of July 1, 2021, as restated             $         4,114,819       $         4,114,819

                                                       Balance Sheet - Trinity Health Arena Fund
                                                       Leases Receivable       Deferred Inflows
  Balances as of July 1, 2021, as previously stated    $                   -     $                   -
  Adoption of GASB Statement 87                                    3,324,454                3,324,454
  Balances as of July 1, 2021, as restated             $         3,324,454       $         3,324,454

                                                        Statement of Net Position - Water Fund
                                                       Leases Receivable      Deferred Inflows
  Balances as of July 1, 2021, as previously stated    $                   -     $                   -
  Adoption of GASB Statement 87                                    1,019,762                1,019,762
  Balances as of July 1, 2021, as restated             $         1,019,762       $         1,019,762




                                                       86
                                                      117
                                              City of Muskegon
                                 NOTES TO FINANCIAL STATEMENTS
                                            June 30, 2022



NOTE O—CHANGE IN ACCOUNTING PRINCIPLE—Continued

                                                      Statement of Net Position - Governmental
                                                                     Activities
                                                      Leases Receivable       Deferred Inflows
  Balances as of July 1, 2021, as previously stated   $                  -     $                  -
  Adoption of GASB Statement 87                                  7,439,273                7,439,273
  Balances as of July 1, 2021, as restated            $         7,439,273      $         7,439,273

                                                      Statement of Net Position - Business-type
                                                                     Activities
                                                      Leases Receivable       Deferred Inflows
  Balances as of July 1, 2021, as previously stated   $                  -     $                  -
  Adoption of GASB Statement 87                                  1,019,762                1,019,762
  Balances as of July 1, 2021, as restated            $         1,019,762      $         1,019,762


NOTE P—UPCOMING ACCOUNTING PRONOUNCEMENT

  GASB Statement 96—Subscription-Based Information Technology Arrangements was issued by the GASB in
  May 2020 and will be effective for the City’s 2023 fiscal year. This Statement provides guidance on the
  accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for
  government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA
  results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability;
  (3) provides the capitalization criteria for outlays other than subscription payments, including implementation
  costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards
  for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.


NOTE Q—SUBSEQUENT EVENT

  On September 20, 2022, the City issued Revenue Bonds for the Water Fund of $4,843,000 for improvements
  to the drinking water system.




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REQUIRED SUPPLEMENTARY INFORMATION




                89
               120
                                                                  City of Muskegon
                                                    BUDGETARY COMPARISON SCHEDULE
                                                                     General Fund
                                                           For the year ended June 30, 2022
                                           (with comparative actual amounts for the year ended June 30, 2021)


                                                                                                2022                                     2021
                                                                     Budgeted Amounts                               Variance with
                                                                    Original     Final                 Actual       Final Budget         Actual
REVENUES
  Taxes
    City income taxes                                             $ 9,100,000    $ 9,300,000      $ 10,002,623      $     702,623    $    9,256,826
    Property taxes                                                  7,916,754      8,263,500         7,980,885           (282,615)        7,624,483
    Industrial facilities taxes                                       200,000        175,000           155,353            (19,647)          211,811
    Payments in lieu of taxes                                         662,541        662,541           656,785             (5,756)          607,538
              Total taxes                                           17,879,295     18,401,041          18,795,646         394,605        17,700,658

   Licenses and permits
      Business licenses                                                 43,000         45,000             43,875           (1,125)          45,415
      Liquor licenses                                                   50,000         65,000             65,054               54           45,808
      Marihuana facilities licenses                                    102,500        195,000            175,500          (19,500)         189,200
      Cable TV fees                                                    370,000        370,000            369,420             (580)         374,219
      Rental property registration                                     397,500        399,500            412,225           12,725          397,236
      Burial permits                                                    80,000         75,000             69,200           (5,800)          74,435
      Building permits                                                 800,000        775,000            755,346          (19,654)         683,883
      Electrical permits                                               201,000        190,000            172,506          (17,494)         194,056
      Plumbing permits                                                  98,000         98,000             87,562          (10,438)          99,165
      Mechanical permits                                               146,000        135,000            130,775           (4,225)         136,858
      Vacant building fees                                               3,500         30,000             24,585           (5,415)           6,100
              Total licenses and permits                             2,291,500      2,377,500           2,306,048         (71,452)        2,246,375

   Intergovernmental revenues
      Federal grants                                                   333,344        270,000            291,918           21,918         1,667,916

      State
         Grants                                                        924,000      1,393,000           1,392,403            (597)        1,018,505
         State shared revenue                                        4,399,008      4,399,008           5,087,587         688,579         4,733,888
              Total intergovernmental revenues - State               5,323,008      5,792,008           6,479,990         687,982         5,752,393

      Local                                                                  -              -             50,000           50,000           50,000




                                                                          90
                                                                         121
                                                              City of Muskegon
                                    BUDGETARY COMPARISON SCHEDULE—CONTINUED
                                                             General Fund
                                                   For the year ended June 30, 2022
                                   (with comparative actual amounts for the year ended June 30, 2021)


                                                                                               2022                                     2021
                                                                   Budgeted Amounts                                Variance with
                                                                  Original     Final                  Actual       Final Budget         Actual
Charges for services
  Tax administration fees                                     $      327,000   $     386,000     $       389,161   $       3,161    $      369,323
  Utility administration fees                                        310,000         310,000             310,000               -           310,000
  Reimbursement for elections                                              -          20,000               2,464         (17,536)               75
  Brownfield authority admin fee                                     275,000         275,000             275,000               -           175,000
  Indirect cost reimbursements                                     1,481,624       1,440,116           1,440,116               -         1,278,590
  Site plan review fee                                                 5,800          12,000              10,900          (1,100)            8,900
  Sale of cemetery lots                                               30,000          40,000              33,493          (6,507)           47,339
  Police miscellaneous                                               145,200         224,200             250,874          26,674           130,990
  Police impound fees                                                 40,000          40,000              37,903          (2,097)           46,309
  Landlord's alert fee                                                30,000          30,000              25,783          (4,217)           25,766
  Fire protection - state property                                   119,574         101,158             101,158               -           119,574
  Zoning fees                                                         19,500          30,300              27,785          (2,515)           21,580
  Muskegon Heights zoning                                             15,000           7,600               2,310          (5,290)           11,270
  Clerk fees                                                           2,000           9,000              32,493          23,493             1,387
  Clerk fees - passport fees                                          40,000          44,000              45,480           1,480             5,555
  Tax abatement application fees                                      14,400           9,500               7,280          (2,220)            4,085
  Treasurer fees                                                      42,000          34,900              76,621          41,721            57,618
  False alarm fees                                                     7,000           7,000               7,785             785             5,880
  Miscellaneous cemetery income                                       16,000          40,000              32,615          (7,385)           34,956
  Downtown social district                                            36,750          75,000              79,102           4,102             7,281
  Fire miscellaneous                                                  14,000          14,500              10,922          (3,578)           16,334
  Sanitation stickers                                                404,100         437,700             451,038          13,338           435,659
  Lot cleanup fees                                                    39,500          37,500              27,808          (9,692)           34,615
  Reimbursements - lot mowing and demolitions                          5,000               -                   -               -                 -
  Special events reimbursements                                       50,000          15,000              22,621           7,621           (34,762)
  Recreation program fees                                              8,000          21,500              22,192             692            14,890
  Parking                                                            500,000         720,000             837,125         117,125           543,794
  Other charges for services                                               -          10,000               6,000          (4,000)                -
         Total charges for services                                3,977,448       4,391,974          4,566,029          174,055        3,672,008

Fines and forfeitures
   Income tax - penalty and interest                                200,000         200,000             189,868          (10,132)         286,818
   Late fees on current taxes                                        20,000          20,000              17,878           (2,122)          15,574
   Interest on late invoices                                         11,000          17,400              17,777              377           16,179
   Parking fines                                                    135,000         242,000             249,725            7,725          149,864
   Court fines                                                      120,000          90,000              74,789          (15,211)          97,979
   Civil infractions                                                 15,000          31,000              31,332              332           18,057
         Total fines and forfeitures                                501,000         600,400             581,369          (19,031)         584,471

Investment earnings and rental income
   Interest income                                                  100,000          75,000             254,524          179,524           98,623
   Net increase (decrease) in the fair value of investments               -               -            (918,392)        (918,392)        (163,278)
   City right of way rental                                           6,800           2,400               2,400                -            2,000
   Fire station lease - Central Dispatch                            480,708         490,000             353,579         (136,421)         101,084
   Parking rentals                                                   68,750          68,750              55,239          (13,511)          61,935
   Great Lakes Naval Memorial lease                                  15,000               -                   -                -                -
   McGraft Park rentals                                              97,000          97,000              92,841           (4,159)          48,016
   Other park rentals                                                49,000          68,500              66,459           (2,041)          50,028
         Total investment earnings and rental income                817,258         801,650             (93,350)        (895,000)         198,408




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                                                                      122
                                                              City of Muskegon
                                        BUDGETARY COMPARISON SCHEDULE—CONTINUED
                                                                 General Fund
                                                       For the year ended June 30, 2022
                                       (with comparative actual amounts for the year ended June 30, 2021)


                                                                                                 2022                                     2021
                                                                    Budgeted Amounts                                 Variance with
                                                                   Original     Final                   Actual       Final Budget         Actual
   Other
      Sale of land and assets                                  $           -    $           -      $          356    $         356    $           -
      Police sale and auction proceeds                                 1,000              500               4,872            4,372              385
      CDBG program reimbursements                                    438,910          399,910             412,269           12,359          495,554
      Fisherman's Landing reimbursement                               17,500           28,039              28,039                -           23,706
      Contributions                                                   62,000          302,000             265,700          (36,300)         558,945
      Contributions - Veteran's Park maintenance                      18,500           16,900              16,889              (11)          12,904
      Community Foundation for Muskegon County                        35,534           10,691              10,691                -           10,144
      Miscellaneous and sundry                                        95,000          426,069             428,301            2,232           82,616
            Total other                                              668,444         1,184,109           1,167,117         (16,992)        1,184,254
            Total revenues                                         31,791,297       33,818,682          34,144,767         326,085        33,056,483

EXPENDITURES
  Current
    Public representation services
        City commission                                               87,223          107,877             106,980              897           96,287
        City promotions and public relations                          76,200           76,200              66,682            9,518           56,041
        City manager                                                 529,550          504,900             490,999           13,901          430,424
        Contributions to outside agencies                            405,329          577,622             567,952            9,670          541,614
        City attorney                                                380,000          505,000             526,315          (21,315)         431,961
            Total public representation services                    1,478,302        1,771,599           1,758,928          12,671         1,556,327

      Administrative services
        City clerk                                                   688,230          683,500             709,596          (26,096)         569,368
        Civil service                                                241,545          255,965             236,245           19,720          214,035
            Total administrative services                            929,775          939,465             945,841           (6,376)         783,403

      Financial services
         Finance administration                                       643,850          642,300             642,543            (243)          643,392
         Assessing                                                    415,948          416,500             415,917             583           348,753
         Arena administration                                               -                -               8,196          (8,196)           10,797
         Income tax administration                                    414,753          409,000             403,538           5,462           400,206
         Information systems                                          550,571          675,500             651,932          23,568           524,565
         City treasurer                                               647,227          625,500             637,622         (12,122)          615,675
         Pension administration                                     2,908,506        2,908,506           2,908,506               -         2,266,951
            Total financial services                                5,580,855        5,677,306           5,668,254           9,052         4,810,339

      Public safety
        Police department                                          10,234,869       10,738,500          10,758,657         (20,157)        9,862,730
        Fire department                                             3,164,026        3,021,811           3,034,373         (12,562)        2,908,093
        Fire safety inspections                                     2,007,745        2,022,000           1,727,952         294,048         1,870,745
            Total public safety                                    15,406,640       15,782,311          15,520,982         261,329        14,641,568




                                                                       92
                                                                      123
                                                             City of Muskegon
                                       BUDGETARY COMPARISON SCHEDULE—CONTINUED
                                                                General Fund
                                                      For the year ended June 30, 2022
                                      (with comparative actual amounts for the year ended June 30, 2021)


                                                                                                 2022                                      2021
                                                                  Budgeted Amounts                                    Variance with
                                                                 Original     Final                     Actual        Final Budget         Actual
      Public works
        Street lighting                                      $      350,000    $      350,000      $       356,973    $      (6,973)   $      382,729
        Community event support                                      92,100           121,000              130,198           (9,198)          100,206
        General sanitation                                        2,037,262         2,345,700            2,344,186            1,514         2,285,497
        Storm water management                                       14,000            30,000               22,233            7,767             4,000
        City hall maintenance                                       325,711           350,000              365,188          (15,188)          310,492
        Cemeteries maintenance                                      473,402           481,382              509,515          (28,133)          360,056
            Total public works                                    3,292,475         3,678,082            3,728,293          (50,211)        3,442,980

      Community and economic development
        Planning, zoning and economic development                  556,100           565,500              542,191            23,309          488,691
        Environmental services                                           -             1,500                1,502                (2)             177
        Edison Landing subsidy                                     200,000           200,000              200,000                 -          350,000
            Total community and economic development               756,100           767,000              743,693            23,307          838,868

      Culture and recreation
         Parks maintenance                                        1,899,516         2,379,089            2,482,189         (103,100)        1,665,740
         McGraft Park maintenance                                   123,075           148,175              142,840            5,335           131,222
         General and inner city recreation programs                       -             5,500                5,482               18               305
         Forestry                                                    80,000            82,500               81,501              999            56,567
         Parking operations                                          45,600            51,330              100,522          (49,192)           89,542
         Farmers market and flea market                                   -                 -                   41              (41)               99
         Social district                                             36,750            47,000               26,905           20,095             5,639
            Total culture and recreation                          2,184,941         2,713,594            2,839,480         (125,886)        1,949,114

      Other governmental functions
         Insurance premiums                                        389,881           464,000              450,719            13,281          351,344
         Other                                                      50,000            50,000               34,305            15,695           28,888
            Total other governmental functions                     439,881           514,000              485,024            28,976          380,232

   Debt service
     Principal                                                     710,000           907,462              907,462                 -         2,285,300
     Interest and fees                                             372,000           390,593              390,771              (178)          250,991
     Bond issuance costs                                                 -             1,000                1,000                 -           140,750
         Total debt service                                       1,082,000         1,299,055            1,299,233             (178)        2,677,041

   Capital outlay                                                 1,829,588         4,552,706            4,662,678         (109,972)        4,358,050
            Total expenditures                                   32,980,557        37,695,118           37,652,406           42,712        35,437,922

Excess of revenues over (under) expenditures                     (1,189,260)       (3,876,436)          (3,507,639)         368,797        (2,381,439)




                                                                      93
                                                                     124
                                                                City of Muskegon
                                       BUDGETARY COMPARISON SCHEDULE—CONTINUED
                                                                General Fund
                                                      For the year ended June 30, 2022
                                      (with comparative actual amounts for the year ended June 30, 2021)


                                                                                                   2022                                       2021
                                                                     Budgeted Amounts                                   Variance with
                                                                    Original     Final                    Actual        Final Budget          Actual
OTHER FINANCING SOURCES (USES)
  Long-term debt issued                                         $ 1,085,275      $      289,176      $     1,370,873    $    1,081,697    $    4,325,000
  Refunding bonds issued                                                  -                   -                    -                 -         2,055,000
  Premium on bonds issued                                                 -                   -                    -                 -           772,424
  Transfers in                                                    1,080,000           6,828,548            5,798,549        (1,029,999)                -
  Transfers out                                                    (915,000)         (3,130,000)          (3,998,250)         (868,250)       (1,475,000)
            Total other financing sources (uses)                     1,250,275       3,987,724             3,171,172         (816,552)        5,677,424

Net change in fund balance                                      $     61,015     $    111,288              (336,467)    $   (447,755)         3,295,985

Fund balance at beginning of year                                                                         11,197,840                          7,901,855

Fund balance at end of year                                                                          $ 10,861,373                         $ 11,197,840



Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.




                                                                          94
                                                                         125
                                                    City of Muskegon
                                      BUDGETARY COMPARISON SCHEDULE
                                          Major Street and Trunkline Fund
                                          For the year ended June 30, 2022


                                                           Budgeted Amounts                                Variance with
                                                         Original       Final                 Actual       Final Budget
REVENUES
  Intergovernmental revenues
     Federal                                         $    1,109,848     $     566,848     $           -     $     (566,848)
     State                                                4,881,000         5,111,000         4,809,424           (301,576)
  Investment earnings                                         5,000            10,000            11,627              1,627
  Other                                                           -           360,000           323,508            (36,492)
         Total revenues                                   5,995,848         6,047,848         5,144,559           (903,289)

EXPENDITURES
  Current
    Highways, streets and bridges                         5,892,486         5,040,138         3,798,863           1,241,275
  Debt service
    Principal                                                     -          230,000           230,000                    -
    Interest and fees                                             -            3,503             3,503                    -
         Total expenditures                               5,892,486         5,273,641         4,032,366           1,241,275

Net change in fund balance                           $    103,362       $   774,207           1,112,193     $     337,986
Fund balance at beginning of year                                                             2,408,053
Fund balance at end of year                                                               $ 3,520,246




Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.




                                                             95
                                                            126
                                                    City of Muskegon
                                      BUDGETARY COMPARISON SCHEDULE
                                             Trinity Health Arena Fund
                                          For the year ended June 30, 2022


                                                            Budgeted Amounts                               Variance with
                                                         Original        Final                Actual       Final Budget
REVENUES
  Intergovernmental revenues
     Federal                                         $           -      $     625,498     $     625,498     $            -
  Charges for services                                   1,075,267          1,961,518         2,683,567            722,049
  Investment earnings                                            -                  -            79,782             79,782
  Other                                                      9,500            662,202            14,904           (647,298)
         Total revenues                                  1,084,767          3,249,218         3,403,751           154,533

EXPENDITURES
  Current
    Culture and recreation                               1,723,805          2,160,000         2,274,570           (114,570)
  Capital outlay                                           125,000          2,137,760         1,987,141            150,619
         Total expenditures                              1,848,805          4,297,760         4,261,711            36,049

Excess of revenues over (under) expenditures              (764,038)         (1,048,542)       (857,960)           190,582

OTHER FINANCING SOURCES
  Transfers in                                           1,029,203            779,203          865,000             85,797
Net change in fund balance                           $     265,165      $    (269,339)           7,040      $     276,379
Fund balance at beginning of year                                                               54,928
Fund balance at end of year                                                               $     61,968




Note: Both budgets and actual figures are prepared in accordance with generally accepted accounting principles.




                                                             96
                                                            127
                                                                                                                 City of Muskegon
                                                                                              Required Supplemental Information
                                                                   SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
                                                                     Last Ten Fiscal Years (Amounts were determined as of December 31 of each fiscal year)


                                                                                       2021               2020               2019               2018               2017               2016              2015              2014
     TOTAL PENSION LIABILITY
       Service cost                                                               $       529,832    $       615,293    $       732,228    $       806,565    $     1,018,541    $     1,130,408    $    1,194,909    $    1,190,507
       Interest                                                                         9,237,064          8,787,617          8,718,797          8,345,836          8,429,233          8,345,661         8,034,035         7,817,503
       Differences between expected and actual experience                                 256,636          2,829,299          1,830,804          3,642,392          1,326,122         (1,697,797)         (647,017)                -
       Changes in assumptions                                                           4,396,829          2,974,495          4,134,788                  -                  -                  -         4,779,382                 -
       Benefit payments, including refunds of employee contributions                   (9,285,923)        (9,214,462)        (8,218,689)        (7,512,608)        (6,937,544)        (6,417,825)       (6,363,249)       (6,407,932)
       Other changes                                                                            -                  -                  -           (229,967)        (4,485,289)                 -                 -                 -
               Net change in total pension liability                                    5,134,438          5,992,242          7,197,928          5,052,218          (648,937)          1,360,447         6,998,060         2,600,078
     Total pension liability at beginning of year                                     125,918,365        119,926,123        112,728,195        107,675,977        108,324,914        106,964,467        99,966,407        97,366,329
     Total pension liability at end of year (a)                                   $ 131,052,803      $ 125,918,365      $ 119,926,123      $ 112,728,195      $ 107,675,977      $ 108,324,914      $ 106,964,467     $ 99,966,407

     PLAN FIDUCIARY NET POSITION
       Contributions-employer                                                     $     3,313,056    $     2,468,311    $     2,712,204    $     2,671,175    $     1,801,016    $     1,996,512    $    1,420,218    $    1,166,652
       Contributions-employee                                                             304,680            374,806            491,814            848,562            687,391            563,898           566,045           564,409
       Net investment income                                                           12,779,029         10,575,596         11,059,388         (3,452,538)        10,964,115          8,890,951        (1,237,895)        5,282,031
       Benefit payments, including refunds or employee contributions                   (9,285,923)        (9,214,462)        (8,218,689)        (7,512,608)        (6,937,544)        (6,417,825)       (6,363,249)       (6,407,932)
       Administrative expense                                                            (146,581)          (173,766)          (190,108)          (173,509)          (173,921)          (175,718)         (183,599)         (193,139)
                                                                                                -                  -                  -
97




               Net change in plan fiduciary net position                                6,964,261          4,030,485          5,854,609         (7,618,918)         6,341,057          4,857,818        (5,798,480)         412,021
     Plan fiduciary net position at beginning of year                                  93,025,193         88,994,708         83,140,099         90,759,017         84,417,960         79,560,142        85,358,622        84,946,601
     Plan fiduciary net position at end of year (b)                               $ 99,989,454       $ 93,025,193       $ 88,994,708       $ 83,140,099       $ 90,759,017       $ 84,417,960       $ 79,560,142      $ 85,358,622

     City's net pension liability at end of year (a)-(b)                          $ 31,063,349       $ 32,893,172       $ 30,931,415       $ 29,588,096       $ 16,916,960       $ 23,906,954       $ 27,404,325      $ 14,607,785

     Plan fiduciary net position as a percentage of the total pension liability          76.30%             73.88%             74.21%             73.75%             84.29%             77.93%            74.38%            85.39%

     Covered payroll                                                              $   4,608,816      $   5,408,268      $   6,110,950      $   6,565,169      $   7,645,789      $   8,460,078      $   9,108,948     $   9,171,511

     City's net pension liability as a percentage of covered payroll                    674.00%            608.20%            506.16%            450.68%            221.26%            282.59%           300.85%           159.27%

     Notes to Schedule
       Additional actuarial data is not available and will be provided in subsequent years.




                                                                                                                        128
                                                                                                     City of Muskegon
                                                                                           Required Supplemental Information
                                                                              PENSION SYSTEM SCHEDULE OF CONTRIBUTIONS
                                                                    Last Ten Fiscal Years (Amounts were determined as of June 30 of each fiscal year)


                                                        2022               2021           2020          2019            2018             2017             2016              2015           2014           2013
     Actuarially determined contribution            $ 3,724,080        $ 2,902,032     $ 1,855,248    $ 1,902,696   $ 1,798,140      $ 1,897,158      $ 1,546,440       $ 1,293,996     $ 1,043,040   $ 1,035,772
     Contributions in relation to the actuarially
       determined contribution                          3,724,080          2,902,032     2,777,641     2,218,663        1,964,214        2,276,200        1,753,272         1,293,996     1,543,040       1,035,772
     Contribution deficiency (excess)               $           -      $           -   $ (922,393)    $ (315,967)   $ (166,074)      $ (379,042)      $ (206,832)       $           -   $ (500,000)   $           -

     Covered payroll                                $ 4,608,816        $ 5,408,268     $ 6,110,950    $ 6,561,169   $ 7,645,789      $ 8,460,078      $ 9,108,948       $ 9,171,511     $ 9,198,938   $ 10,185,425

     Contributions as percentage of covered
      payroll                                             80.8%              53.7%          45.5%         33.8%            25.7%            26.9%            19.2%            14.1%          16.8%          10.2%

     Notes to Schedule
       Valuation Date:
       Actuarially determined contribution rates are calculated as of December 31, two years prior to the end of the fiscal year in which contributions are reported.

        Methods and assumptions used to determine contribution rates:
        Actuarial cost method                 Entry age normal
        Amortization method                   Level percentage of payroll, Closed
98




        Remaining amortization period         17 years
        Asset valuation method                5-year smoothed market
        Inflation                             2.5 percent
        Salary increases                      3.0 percent in the long-term
        Investment rate of return             7.35 percent, net of administrative and investment expenses
        Retirement age                        Varies depending on plan adoption
        Mortality                             Based on a version of Pub-2010 and fully generational MP-2019




                                                                                                            129
                                                                                          City of Muskegon
                                                              REQUIRED SUPPLEMENTARY INFORMATION
                               RETIREE HEALTHCARE SYSTEM SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
                                              Last Ten Fiscal Years (Amounts were determined as of December 31 of each fiscal year)


                                                                                                  2021              2020              2019              2018              2017
     TOTAL OPEB LIABILITY
       Service cost                                                                           $      142,556    $      156,214    $      165,306    $      178,243    $      165,423
       Interest                                                                                    1,999,639         2,058,432         2,191,233         2,035,720         1,954,979
       Differences between expected and actual experience                                         (2,420,665)         (325,146)       (2,119,868)         (992,432)                -
       Changes of assumptions                                                                     (2,771,809)       (1,152,266)        6,288,823         2,349,210                 -
       Benefit payments, including refunds of employee contributions                              (1,710,064)       (1,621,453)       (1,983,928)       (1,118,442)       (1,064,376)
               Net change in total OPEB liability                                                 (4,760,343)        (884,219)         4,541,566         2,452,299         1,056,026
     Total OPEB liability at beginning of year                                                    32,757,983        33,642,202        29,100,636        26,648,337        25,592,311
     Total OPEB liability at end of year (a)                                                  $ 27,997,640      $ 32,757,983      $ 33,642,202      $ 29,100,636      $ 26,648,337

     PLAN FIDUCIARY NET POSITION
       Contributions-employer                                                                 $    1,767,843    $    1,154,926    $    1,001,447    $      671,363    $      736,039
       Net investment income                                                                       2,574,713         2,210,729         2,660,470          (699,603)        2,110,019
       Benefit payments, including refunds or employee contributions                              (1,710,064)       (1,621,453)       (1,983,928)       (1,118,442)       (1,064,376)
99




       Administrative expense                                                                        (47,967)          (42,375)          (41,397)          (53,927)          (52,313)
               Net change in plan fiduciary net position                                           2,584,525         1,701,827         1,636,592        (1,200,609)        1,729,369
     Plan fiduciary net position at beginning of year                                             22,917,388        21,215,561        19,578,969        20,779,578        19,050,209
     Plan fiduciary net position at end of year (b)                                           $ 25,501,913      $ 22,917,388      $ 21,215,561      $ 19,578,969      $ 20,779,578

     City's net OPEB liability at end of year (a)-(b)                                         $   2,495,727     $   9,840,595     $ 12,426,641      $   9,521,667     $   5,868,759

     Plan fiduciary net position as a percentage of the total OPEB liability                        91.09%            69.96%            63.06%            67.28%            77.98%

     Covered payroll                                                                          $   6,978,841     $   7,848,543     $   8,952,683     Not Available     $   8,095,840

     City's net OPEB liability as a percentage of covered payroll                                   35.76%           125.38%           138.80%      Not Available           72.49%

     Notes to Schedule
       Additional actuarial data is not available and will be provided in subsequent years.




                                                                                                  130
                                                                                                   City of Muskegon
                                                                                REQUIRED SUPPLEMENTARY INFORMATION
                                                                    RETIREE HEALTHCARE SYSTEM SCHEDULE OF CONTRIBUTIONS
                                                                   Last Ten Fiscal Years (Amounts were determined as of June 30 of each fiscal year)


                                                        2022            2021           2020            2019             2018           2017            2016            2015             2014            2013
      Actuarially determined contribution            $ 1,344,010     $ 2,289,405    $ 2,115,188     $ 1,470,562     $    956,532   $    606,506    $    639,428    $    659,451     $    696,634    $    728,863
      Contributions in relation to the actuarially
       determined contribution                           650,383        1,206,464      1,233,505       1,260,887         687,642        606,506         639,428         659,451          696,634         728,863
      Contribution deficiency (excess)               $ 693,627       $ 1,082,941    $ 881,683       $ 209,675       $ 268,890      $          -    $          -    $           -    $          -    $           -

      Covered payroll                                $ 6,978,841     $ 7,848,543    $ 8,952,683     Not Available   $ 8,095,840    $ 10,830,000    $ 10,830,000    $ 10,005,000     $ 10,005,000    $ 12,365,000

      Contributions as percentage of covered
       payroll                                             9.3%           15.4%          13.8%      Not Available          8.5%           5.6%            5.9%            6.6%             7.0%               5.9%

      Notes to Schedule
        Valuation Date:
        Actuarially determined contribution rates are calculated as of December 31, 2021.

         Methods and assumptions used to determine contribution rates:
         Actuarial cost method                 Entry age normal (level percentage of compensation)
         Amortization method                   Level percentage of payroll, Closed
100




         Remaining amortization period         7 years
         Asset valuation method                Equal to market value of assets
         Inflation                             2.5 percent
         Salary increases                      0.0 percent
         Investment rate of return             7.35 percent (including inflation), net of administrative and investment expenses
         Retirement age                        55 - 60 years of age
         Mortality                             Mortality rates for police and fire were as set forth in the Public Safety 2010 Employee and Healthy Retiree, headcount weighted, MP-2021 improvement scale.
                                                 Mortality rates for others were as set forth in the Public General 2010 Employee and Healthy Retiree, headcount weighted, MP-2021 improvement scale.




                                                                                                          131
                                                                                     City of Muskegon
                                                                     REQUIRED SUPPLEMENTARY INFORMATION
                                                     RETIREE HEALTHCARE SYSTEM SCHEDULE OF INVESTMENT RETURNS
                                                     Last Ten Fiscal Years (Amounts were determined as of December 31 of each fiscal year)


                                                                                           2021                2020                2019        2018       2017

      Annual money-weighted rate of return, net of investment expense                         11.23%              10.55%              13.95%     -3.41%     11.19%

      Notes to Schedule
       Additional data is not available and will be provided in subsequent years
101




                                                                                             132
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                  102
                  133
OTHER SUPPLEMENTAL INFORMATION




             103
             134
                                            DESCRIPTION OF
                                      OTHER GOVERNMENTAL FUNDS


                                              Special Revenue Funds

The special revenue funds are used to account for the proceeds of special revenue sources that are legally
restricted to expenditures for specific purposes.

Local Street – to account for gas and weight allocations to the City by the Michigan Department of Transportation
for construction and maintenance of local streets within the City.

Farmers Market and Kitchen 242 – to account for revenues received for the City’s Farmers Market and Kitchen
242.

Criminal Forfeitures – to account for receipts generated through the sale of assets seized through criminal court
proceedings.

Downtown BID – to account for the collection of special assessment revenue in the downtown to be used for
improvement and maintenance of downtown public infrastructure.

Lakeshore BID – to account for the collection of special assessment revenue in the lakeshore area to be used for
improvement and maintenance of lakeshore infrastructure.

Tree Replacement – to account for contributions and other revenues earmarked for tree replacement throughout
the City.

                                              Capital Projects Funds

Capital projects funds are used to account for financial resources to be used for the acquisition or construction of
major capital assets other than those financed by proprietary funds and trust funds.

Public Improvement Fund – to account for grants, private contributions, sale of property, and other resources used
to finance various capital projects.

Michcon Remediation – to account for reimbursements received from Michcon Gas Company for environmental
remediation of their former downtown site.

EDC Revolving Loan – to account for funds received upon repayment of Urban Development Action Grant loans
and subsequently reloaned to small business enterprises.

Community Development Block Grant – to account for categorical grants received from the U. S. Department of
Housing and Urban Development for the construction of major city public improvements and the rehabilitation of
residential housing and other qualifying expenditures.




                                                        104
                                                        135
                                        DESCRIPTION OF
                             OTHER GOVERNMENTAL FUNDS—CONTINUED


                                       Capital Projects Funds—Continued

HOME Rehabilitation – to account for grant revenues received from the U. S. Department of Housing and Urban
Development for the purpose of providing housing assistance to low and moderate income households in the City.

Lead Abatement – to account for grant revenues received from the U. S. Department of Health and Human
Services for the purpose of abatement of lead from homes in the City.

Senior Millage – to account for proceeds from the County millage for senior services that were distributed to the
City for specific projects.

Convention Center Construction – to account for proceeds from debt issuance for the construction of a convention
center in downtown Muskegon.

Healthy Homes – to account for grant revenues received from the U. S. Department of Housing and Urban
Development for the purpose of addressing multiple residential health and safety hazards.

                                                 Permanent Funds

Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government’s programs.

Cemetery Perpetual Care – to account for charges for services collected and investment income earned and to
account for transfers to the General Fund to partially cover cemetery care expenses.




                                                         105
                                                         136
                                                          City of Muskegon
                                                  COMBINING BALANCE SHEET
                                                    Other Governmental Funds
                                                          June 30, 2022


                                                                                        Other            Other           Permanent
                                                                   Total Other          Special         Capital            Fund -
                                                                  Governmental         Revenue          Projects         Cemetery
                                                                     Funds              Funds            Funds         Perpetual Care
ASSETS
  Cash and investments                                             $   3,001,131   $    1,040,460   $    1,285,084      $     675,587
  Assets managed by others                                             1,356,585                -           29,011          1,327,574
  Receivables
     Accounts and loans (net of allowance for uncollectibles)           989,779            13,085          973,815             2,879
  Due from other governmental units                                     505,219           196,197          309,022                 -
  Advances to component units                                           148,994                 -                -           148,994
  Prepaid items                                                           7,905             7,905                -                 -
            Total assets                                           $ 6,009,613     $ 1,257,647      $ 2,596,932         $ 2,155,034

LIABILITIES
  Accounts payable                                                 $    303,168    $       37,286   $      265,882      $           -
  Accrued liabilities                                                    41,424            22,703           18,721                  -
  Due to other governmental units                                           788               788                -                  -
  Due to other funds                                                     33,684                 -           33,684                  -
  Short-term draw note                                                   84,297                 -           84,297                  -
  Unearned revenues - unused Farmers Market tokens                       26,331            26,331                -                  -
         Total liabilities                                              489,692            87,108          402,584                  -

FUND BALANCES
  Nonspendable
    Prepaid items                                                          7,905            7,905                  -                -
    Perpetual care                                                     1,677,702                -                  -        1,677,702
  Restricted
    Highways, streets and bridges                                        789,134          789,134                -                 -
    Law enforcement                                                       23,161           23,161                -                 -
    Business improvement districts                                       176,733          176,733                -                 -
    Perpetual care                                                       477,332                -                -           477,332
    Other purposes                                                       173,606          173,606                -                 -
  Assigned for capital projects and public improvements                2,194,348                -        2,194,348                 -
         Total fund balances                                           5,519,921        1,170,539        2,194,348          2,155,034
            Total liabilities and fund balances                    $ 6,009,613     $ 1,257,647      $ 2,596,932         $ 2,155,034




                                                                106
                                                                137
                                                    City of Muskegon
 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
                                  Other Governmental Funds
                               For the year ended June 30, 2022


                                                                       Other              Other           Permanent
                                                 Total Other           Special           Capital            Fund -
                                                Governmental          Revenue            Projects         Cemetery
                                                   Funds               Funds              Funds         Perpetual Care
REVENUES
  Intergovernmental revenues
     Federal                                    $    2,952,413    $            -     $    2,952,413      $          -
     State                                           2,538,375         1,461,786          1,076,589                 -
     Local                                             261,057                 -            261,057                 -
  Charges for services                                 495,403           401,906             58,204            35,293
  Fines and forfeitures                                  1,264             1,264                  -                 -
  Investment earnings                                   36,959             4,445             23,356             9,158
  Income from assets managed by others                (134,215)                -             (5,173)         (129,042)
  Other                                              1,104,169           275,176            828,993                 -
         Total revenues                              7,255,425         2,144,577          5,195,439           (84,591)

EXPENDITURES
  Current
    Public safety                                          443               443                    -                -
    Public works                                       156,277           156,277                    -                -
    Highways, streets and bridges                    1,998,785         1,998,785                    -                -
    Culture and recreation                             484,929           484,929                    -                -
  Debt service
    Principal                                          205,000                   -          205,000                  -
    Interest and fees                                  616,730                   -          616,730                  -
  Capital outlay                                     4,835,674                   -        4,835,674                  -
         Total expenditures                          8,297,838         2,640,434          5,657,404                  -

Excess of revenues over (under) expenditures        (1,042,413)         (495,857)          (461,965)          (84,591)

OTHER FINANCING SOURCES (USES)
  Proceeds from sale of capital assets               1,204,675                 -          1,204,675                  -
  Transfers in                                       3,128,500           262,500          2,866,000                  -
  Transfers out                                       (401,000)                -           (401,000)                 -
         Total other financing sources (uses)        3,932,175           262,500          3,669,675                  -

Net change in fund balances (deficits)               2,889,762          (233,357)         3,207,710           (84,591)

Fund balances (deficits) at beginning of year        2,630,159         1,403,896         (1,013,362)         2,239,625
Fund balances at end of year                    $ 5,519,921       $ 1,170,539        $ 2,194,348         $ 2,155,034




                                                          107
                                                          138
                                                                             City of Muskegon
                                                                      COMBINING BALANCE SHEET
                                                                        Other Special Revenue Funds
                                                                               June 30, 2022


                                                             Total Other                     Farmers
                                                           Special Revenue       Local      Market and     Criminal     Downtown      Lakeshore       Tree
                                                                Funds            Street     Kitchen 242   Forfeitures     BID           BID        Replacement
      ASSETS
        Cash and investments                                $   1,040,460    $    613,349   $   222,106   $    23,161   $   135,442   $   45,791   $      611
        Receivables
           Accounts                                                13,085           7,550         5,535             -             -            -            -
        Due from other governmental units                         196,197         196,197             -             -             -            -            -
        Prepaid items                                               7,905           7,905             -             -             -            -            -
                 Total assets                               $ 1,257,647      $ 825,001      $ 227,641     $   23,161    $ 135,442     $   45,791   $      611

      LIABILITIES
        Accounts payable                                    $      37,286    $      8,503   $    24,283   $         -   $     4,500   $        -   $        -
        Accrued liabilities                                        22,703          19,459         3,244             -             -            -            -
        Due to other governmental units                               788               -           788             -             -            -            -
108




        Unearned revenues - unused Farmers Market tokens           26,331               -        26,331             -             -            -            -
              Total liabilities                                    87,108          27,962        54,646             -         4,500            -            -

      FUND BALANCES
        Nonspendable - prepaid items                                7,905           7,905             -             -             -            -            -
        Restricted
          Highways, streets and bridges                           789,134         789,134             -             -             -            -            -
          Law enforcement                                          23,161               -             -        23,161             -            -            -
          Business improvement districts                          176,733               -             -             -       130,942       45,791            -
          Other purposes                                          173,606               -       172,995             -             -            -          611
              Total fund balances                               1,170,539         797,039       172,995        23,161       130,942       45,791          611
                 Total liabilities and fund balances        $ 1,257,647      $ 825,001      $ 227,641     $   23,161    $ 135,442     $   45,791   $      611




                                                                                      139
                                                                          City of Muskegon
                                 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                                                            Other Special Revenue Funds
                                                           For the year ended June 30, 2022


                                                       Total Other                     Farmers
                                                     Special Revenue     Local        Market and     Criminal     Downtown       Lakeshore       Tree
                                                          Funds          Street       Kitchen 242   Forfeitures     BID            BID        Replacement
      REVENUES
        Intergovernmental revenues
           State                                      $   1,461,786    $ 1,461,786    $         -   $         -   $         -    $        -    $        -
        Charges for services                                401,906          2,800        399,106             -             -             -             -
        Fines and forfeitures                                 1,264              -              -         1,264             -             -             -
        Investment earnings                                   4,445          2,960            614           111           641            82            37
        Other                                               275,176         39,642         61,778             -       117,193        43,126        13,437
               Total revenues                             2,144,577      1,507,188        461,498         1,375       117,834        43,208        13,474

      EXPENDITURES
        Current
          Public safety                                         443              -              -          443              -             -             -
109




          Public works                                      156,277              -              -            -        119,880        36,397             -
          Highways, streets and bridges                   1,998,785      1,998,785              -            -              -             -             -
          Culture and recreation                            484,929              -        455,886            -              -             -        29,043
               Total expenditures                         2,640,434      1,998,785        455,886          443        119,880        36,397        29,043

      Excess of revenues over (under) expenditures         (495,857)      (491,597)         5,612          932         (2,046)        6,811        (15,569)

      OTHER FINANCING SOURCES
        Transfers in                                        262,500        100,000        125,000             -             -        35,000          2,500

      Net change in fund balances                          (233,357)      (391,597)       130,612          932         (2,046)       41,811        (13,069)

      Fund balances at beginning of year                  1,403,896      1,188,636         42,383        22,229       132,988         3,980        13,680
      Fund balances at end of year                    $ 1,170,539      $ 797,039      $ 172,995     $   23,161    $ 130,942      $   45,791    $      611




                                                                                  140
                                                                    City of Muskegon
                                                        BUDGETARY COMPARISON SCHEDULE
                                                             Other Special Revenue Funds
                                                            For the year ended June 30, 2022


                                                                     Local Street                            Farmers Market and Kitchen 242
                                                       Final                        Variance with          Final                    Variance with
                                                      Budget          Actual        Final Budget          Budget       Actual       Final Budget
      REVENUES
        Intergovernmental revenues
           State                                     $ 1,460,000    $ 1,461,786     $        1,786    $           -    $         -   $          -
        Charges for services                               5,000          2,800             (2,200)         363,225        399,106         35,881
        Investment earnings                                3,500          2,960               (540)             500            614            114
        Other                                             40,000         39,642               (358)          36,000         61,778         25,778
               Total revenues                          1,508,500      1,507,188             (1,312)         399,725        461,498         61,773

      EXPENDITURES
        Current
110




          Highways, streets and bridges                2,117,950      1,998,785           119,165                 -              -              -
          Culture and recreation                               -              -                 -           429,200        455,886        (26,686)
               Total expenditures                      2,117,950      1,998,785           119,165           429,200        455,886        (26,686)

      Excess of revenues over (under) expenditures      (609,450)      (491,597)          117,853           (29,475)         5,612         35,087

      OTHER FINANCING SOURCES
        Transfers in                                     100,000        100,000                  -           40,000        125,000         85,000

      Net change in fund balances                    $ (509,450)       (391,597)    $    117,853      $     10,525         130,612   $   120,087

      Fund balances at beginning of year                              1,188,636                                             42,383

      Fund balances at end of year                                  $ 797,039                                          $ 172,995




                                                                           141
                                                                City of Muskegon
                                           BUDGETARY COMPARISON SCHEDULE─CONTINUED
                                                      Other Special Revenue Funds
                                                    For the year ended June 30, 2022


                                                         Criminal Forfeitures                               Downtown BID
                                                Final                      Variance With        Final                        Variance With
                                               Budget         Actual       Final Budget        Budget           Actual       Final Budget
      REVENUES
        Fines and forfeitures              $         -      $      1,264    $      1,264   $          -     $           -    $           -
        Investment earnings                        100               111              11              -               641              641
        Other                                        -                 -               -        114,888           117,193            2,305
               Total revenues                      100             1,375           1,275        114,888           117,834            2,946

      EXPENDITURES
        Current
          Public safety                            500              443               57              -                 -                -
          Public works                               -                -                -        114,888           119,880           (4,992)
111




               Total expenditures                  500              443               57        114,888           119,880           (4,992)

      Net change in fund balances          $      (400)             932     $      1,332   $            -          (2,046)   $      (2,046)

      Fund balances at beginning of year                          22,229                                          132,988

      Fund balances at end of year                          $    23,161                                     $    130,942




                                                                      142
                                                                             City of Muskegon
                                                     BUDGETARY COMPARISON SCHEDULE─CONTINUED
                                                                Other Special Revenue Funds
                                                              For the year ended June 30, 2022


                                                                        Lakeshore BID                                     Tree Replacement
                                                            Final                        Variance with        Final                      Variance with
                                                           Budget            Actual      Final Budget        Budget           Actual     Final Budget
      REVENUES
        Investment earnings                            $          -      $          82    $         82   $          -       $       37     $        37
        Other                                                26,944             43,126          16,182         13,500           13,437             (63)
               Total revenues                                26,944             43,208          16,264         13,500           13,474             (26)

      EXPENDITURES
        Current
          Public works                                       41,944             36,397           5,547              -                -               -
          Culture and recreation                                  -                  -               -         30,000           29,043             957
                                                                                     -               -
               Total expenditures                            41,944             36,397           5,547         30,000           29,043             957
112




      Excess of revenues over (under) expenditures           (15,000)            6,811          21,811         (16,500)         (15,569)           931

      OTHER FINANCING SOURCES
        Transfers in                                                -           35,000          35,000           5,000            2,500         (2,500)

      Net change in fund balances                      $ (15,000)               41,811    $     56,811   $ (11,500)             (13,069)   $    (1,569)

      Fund balances at beginning of year                                         3,980                                          13,680

      Fund balances at end of year                                       $     45,791                                       $      611




                                                                                   143
                                                                                                        City of Muskegon
                                                                                              COMBINING BALANCE SHEET
                                                                                                Other Capital Projects Funds
                                                                                                       June 30, 2022


                                                         Total Other                                          EDC           Community                                                Convention
                                                        Capital Projects      Public       Michcon          Revolving      Development     HOME             Lead       Senior          Center       Healthy
                                                            Funds          Improvement    Remediation         Loan         Block Grant   Rehabilitation   Abatement    Millage       Construction   Homes
      ASSETS
        Cash and investments                            $      1,285,084   $    317,741   $   228,686      $    506,837    $    21,197   $      25,768    $        -   $   31,377    $    153,478   $       -
        Assets managed by others                                  29,011         29,011             -                 -              -               -             -            -               -           -
        Receivables
          Accounts and loans (net of
            allowance for uncollectibles)                       973,815         299,916             -           661,160         12,739               -             -             -              -           -
        Due from other governmental units                       309,022               -             -                 -        174,570          57,713        74,724             -              -       2,015

                  Total assets                          $    2,596,932     $   646,668    $ 228,686        $ 1,167,997     $   208,506   $     83,481     $ 74,724     $ 31,377      $   153,478    $   2,015

      LIABILITIES
        Accounts payable                                $       265,882    $     10,976   $         -      $           -   $    77,606   $      80,854    $   41,801   $   13,003    $     41,642   $       -
        Accrued liabilities                                      18,721               -             -                  -        16,323           1,144           505            -               -         749
        Due to other funds                                       33,684               -             -                  -             -               -        32,418            -               -       1,266
        Short-term draw note                                     84,297          84,297             -                  -             -               -             -            -               -           -
               Total liabilities                                402,584          95,273             -                  -        93,929          81,998        74,724       13,003          41,642       2,015
113




      FUND BALANCES
        Assigned for capital projects
         and public improvements                               2,194,348        551,395       228,686          1,167,997       114,577           1,483             -       18,374         111,836           -
                  Total liabilities and fund balances   $    2,596,932     $   646,668    $ 228,686        $ 1,167,997     $   208,506   $     83,481     $ 74,724     $ 31,377      $   153,478    $   2,015




                                                                                                               144
                                                                                                     City of Muskegon
                                                COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
                                                                                Other Capital Projects Funds
                                                                              For the year ended June 30, 2022


                                                       Total Other                                          EDC            Community                                                     Convention
                                                      Capital Projects       Public          Michcon      Revolving       Development       HOME             Lead        Senior            Center          Healthy
                                                          Funds           Improvement       Remediation     Loan          Block Grant     Rehabilitation   Abatement     Millage         Construction      Homes
      REVENUES
        Intergovernmental revenues
           Federal                                    $      2,952,413    $           -     $         -   $          -    $   1,748,418   $     580,355    $ 621,625     $         -     $           -     $   2,015
           State                                             1,076,589                -               -              -                -               -       21,804               -         1,054,785             -
           Local                                               261,057          261,057               -              -                -               -            -               -                 -             -
        Charges for services                                    58,204           52,204               -          6,000                -               -            -               -                 -             -
        Investment earnings                                     23,356                -           1,141         21,879                -               -            -             298                38             -
        Income from assets managed by others                    (5,173)          (5,173)              -              -                -               -            -               -                 -             -
        Other                                                  828,993          471,709               -        107,916            5,758               6            3         243,601                 -             -
               Total revenues                                5,195,439          779,797           1,141        135,795        1,754,176         580,361        643,432       243,899         1,054,823         2,015

      EXPENDITURES
        Debt service
          Principal                                            205,000                -               -              -                -               -              -             -           205,000             -
          Interest and fees                                    616,730            4,519               -              -                -               -              -             -           612,211             -
        Capital outlay                                       4,835,674          647,099               -        410,900        1,707,058         426,476        643,432       265,356           733,338         2,015
               Total expenditures                            5,657,404          651,618               -        410,900        1,707,058         426,476        643,432       265,356         1,550,549         2,015
114




      Excess of revenues over (under) expenditures            (461,965)         128,179           1,141       (275,105)         47,118          153,885              -        (21,457)        (495,726)            -

      OTHER FINANCING SOURCES (USES)
        Proceeds from sale of capital assets                 1,204,675        1,084,182               -               -         67,459           53,034              -              -                -             -
        Transfers in                                         2,866,000          366,000               -               -              -                -              -              -        2,500,000             -
        Transfers out                                         (401,000)               -               -               -              -         (316,000)             -        (85,000)               -             -
               Total other financing sources (uses)          3,669,675        1,450,182               -               -         67,459         (262,966)             -        (85,000)       2,500,000             -

      Net change in fund balances (deficits)                 3,207,710        1,578,361           1,141       (275,105)        114,577         (109,081)             -       (106,457)       2,004,274             -

      Fund balances (deficits) at beginning of year         (1,013,362)       (1,026,966)       227,545       1,443,102               -         110,564              -       124,831         (1,892,438)           -
      Fund balances at end of year                    $    2,194,348      $    551,395      $   228,686   $ 1,167,997     $   114,577     $      1,483     $         -   $ 18,374        $    111,836      $       -




                                                                                                          145
                                             DESCRIPTION OF
                                         INTERNAL SERVICE FUNDS


Internal service funds are used to account for the financing of goods or services provided by one department to
other departments of a governmental unit or to other governments on a cost-reimbursement basis.

A list and description of internal service funds maintained by the City follows:

Engineering Services – to account for salary, benefit and other costs related to the provision of internal
engineering services for City projects; to account for charges to the user funds and projects to cover those
expenses.

Equipment – to account for the purchase, operation, maintenance and depreciation of all City-owned vehicles and
equipment; to account for charges to the user funds and departments to cover those expenses.

General Insurance – to account for the payment of claims and benefits, excess liability premiums and operating
expenses; to account for charges to other funds and departments to cover the expenses.

Public Service Building – to account for the operation, maintenance and depreciation of the City's Public Service
Building; to account for charges to the user funds and departments to cover these expenses.




                                                        115
                                                        146
                                                                      City of Muskegon
                                                  COMBINING STATEMENT OF NET POSITION
                                                            Internal Service Funds
                                                                 June 30, 2022


                                                                       Total Internal    Engineering                     General        Public Service
                                                                       Service Funds      Services      Equipment       Insurance         Building
ASSETS
Current assets
  Cash and investments                                                 $    3,559,579    $    67,853    $ 1,534,275     $ 1,012,141     $     945,310
  Accounts receivable                                                         333,192         24,619          9,357         299,216                 -
  Inventories                                                                  38,867              -         38,867               -                 -
  Prepaid items                                                               229,096          2,906         62,719         158,586             4,885
         Total current assets                                               4,160,734         95,378       1,645,218       1,469,943          950,195
Noncurrent assets
  Advances to component units                                                 297,986              -        148,993         148,993                  -
  Capital assets
     Land                                                                      65,000              -               -                -           65,000
     Land improvements                                                        301,715              -               -                -          301,715
     Buildings and improvements                                             1,668,215              -               -                -        1,668,215
     Machinery and equipment                                               10,313,517         51,346      10,167,807                -           94,364
        Less accumulated depreciation                                      (9,524,983)       (33,645)     (7,676,636)               -       (1,814,702)
         Net capital assets                                                 2,823,464         17,701       2,491,171                -         314,592
         Total noncurrent assets                                            3,121,450         17,701       2,640,164        148,993           314,592
            Total assets                                                    7,282,184        113,079       4,285,382       1,618,936        1,264,787
DEFERRED OUTFLOWS OF RESOURCES
  Related to pension                                                           74,482              -         27,931                 -          46,551
  Related to other postemployment benefits                                     40,689              -         15,258                 -          25,431
            Total deferred outflows of resources                              115,171              -         43,189                 -          71,982
                Total assets and deferred outflows of resources             7,397,355        113,079       4,328,571       1,618,936        1,336,769
LIABILITIES
Current liabilities
  Accounts payable                                                            779,382          4,808        210,469         520,956            43,149
  Accrued liabilities                                                          60,116         14,296         16,094           1,825            27,901
  Bonds and other obligations, due within one year                             39,200          8,800         14,100             900            15,400
         Total current liabilities                                            878,698         27,904        240,663         523,681            86,450
Noncurrent liabilities
  Bonds and other obligations, less amounts due within one year               156,651         34,990         56,497           3,722            61,442
  Net pension liability                                                     1,242,534              -        465,950               -           776,584
  Net other postemployment benefits liability                                  99,829              -         37,436               -            62,393
         Total noncurrent liabilities                                       1,499,014         34,990        559,883           3,722           900,419
                Total liabilities                                           2,377,712         62,894        800,546         527,403           986,869
DEFERRED INFLOWS OF RESOURCES
  Related to pension                                                          278,007              -        104,253                 -         173,754
  Related to other postemployment benefits                                    105,577              -         39,591                 -          65,986
            Total deferred inflows of resources                               383,584              -        143,844                 -         239,740
                Total liabilities and deferred inflows of resources         2,761,296         62,894        944,390         527,403         1,226,609
NET POSITION
  Net investment in capital assets                                          2,823,464         17,701       2,491,171               -          314,592
  Unrestricted                                                              1,812,595         32,484         893,010       1,091,533         (204,432)
                Total net position                                     $   4,636,059     $   50,185     $ 3,384,181     $ 1,091,533     $    110,160




                                                                            116
                                                                            147
                                                           City of Muskegon
                  COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET POSITION
                                             Internal Service Funds
                                        For the year ended June 30, 2022


                                                   Total Internal    Engineering                   General        Public Service
                                                   Service Funds      Services      Equipment     Insurance         Building
OPERATING REVENUES
  Charges for services                             $   10,433,668    $    575,183   $ 3,328,303   $ 5,208,979     $    1,321,203
  Other                                                   158,582          69,709        81,105         7,768                  -
          Total operating revenues                     10,592,250         644,892     3,409,408     5,216,747          1,321,203

OPERATING EXPENSES
  Administration                                          958,063         111,814       198,505        46,960            600,784
  Insurance premiums and claims                         5,386,649               -             -     5,386,649                  -
  Other operations                                      3,701,160         516,787     2,189,569        49,469            945,335
  Depreciation                                            499,466           2,500       469,305             -             27,661
          Total operating expenses                     10,545,338         631,101     2,857,379     5,483,078          1,573,780

          Operating income (loss)                         46,912           13,791       552,029      (266,331)          (252,577)

NONOPERATING REVENUES (EXPENSES)
  Investment earnings                                     25,649             336         12,892         8,751              3,670
  Gain (loss) on sale of capital assets                   38,349               -         38,349             -                  -
          Total nonoperating revenues (expenses)          63,998             336         51,241         8,751              3,670

          Income (loss) before transfers                 110,910           14,127       603,270      (257,580)          (248,907)

TRANSFERS
  Transfers in                                           400,000                -             -               -          400,000

          Change in net position                         510,910           14,127       603,270      (257,580)           151,093

Net position at beginning of year                       4,125,149          36,058     2,780,911     1,349,113            (40,933)
Net position at end of year                        $ 4,636,059       $    50,185    $ 3,384,181   $ 1,091,533     $     110,160




                                                                    117
                                                                    148
                                                                                            City of Muskegon
                                                                                 COMBINING STATEMENT OF CASH FLOWS
                                                                                            Internal Service Funds
                                                                                       For the year ended June 30, 2022


                                                                                                  Total Internal     Engineering                                General        Public Service
                                                                                                  Service Funds       Services             Equipment           Insurance         Building
      CASH FLOWS FROM OPERATING ACTIVITIES
        Receipts from customers                                                                   $      169,736     $     48,212      $        121,524    $              -    $            -
        Receipts from interfund services provided                                                     10,433,668          575,183             3,328,303           5,208,979         1,321,203
        Other receipts                                                                                 1,266,428                -                     -           1,266,428                 -
        Payments to suppliers                                                                         (6,865,909)        (150,664)           (1,169,326)         (5,081,357)         (464,562)
        Payments to employees                                                                         (1,954,355)        (370,696)             (502,520)            (52,826)       (1,028,313)
        Payments for interfund services used                                                            (848,990)         (91,098)             (633,632)                  -          (124,260)
               Net cash provided by (used for) operating activities                                     2,200,578          10,937             1,144,349          1,341,224           (295,932)
      CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
        Transfers in                                                                                     400,000                   -                 -                   -            400,000
        Interfund borrowing                                                                             (384,381)                  -                 -            (384,381)                 -
        Collections on advances to component units                                                        93,094                   -            46,547              46,547                  -
               Net cash provided by (used for) noncapital financing activities                           108,713                   -            46,547            (337,834)           400,000
      CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
        Purchases of capital assets                                                                     (659,722)                  -          (659,722)                    -                -
118




        Proceeds from sale of capital assets                                                              74,558                   -            74,558                     -                -
               Net cash provided by (used for) capital and related financing activities                 (585,164)                  -          (585,164)                    -                -
      CASH FLOW FROM INVESTING ACTIVITIES
        Investment earnings                                                                               25,649             336                12,892               8,751              3,670
               Net increase (decrease) in cash and investments                                          1,749,776          11,273              618,624           1,012,141            107,738
      Cash and investments at beginning of year                                                         1,809,803          56,580              915,651                     -          837,572
      Cash and investments at end of year                                                         $   3,559,579      $    67,853       $     1,534,275     $    1,012,141      $     945,310
      Reconciliation of operating income (loss) to net cash provided by (used for)
        operating activities
           Operating income (loss)                                                                $       46,912     $     13,791      $       552,029     $      (266,331)    $     (252,577)
           Adjustments to reconcile operating income (loss) to net cash provided by
               (used for) operating activities
                   Depreciation expense                                                                  499,466            2,500              469,305                     -           27,661
               Change in assets and liabilities
                   Receivables                                                                          1,277,582         (21,497)              40,419           1,258,660                  -
                   Inventories                                                                            (31,549)              -              (31,549)                  -                  -
                   Prepaid items                                                                              386          (1,129)               4,217              (4,286)             1,584
                   Accounts payable                                                                       510,189            (429)             147,804             353,703              9,111
                   Accrued liabilities                                                                   (102,408)         17,701              (37,876)               (522)           (81,711)
                     Net cash provided by (used for) operating activities                         $   2,200,578      $    10,937       $     1,144,349     $    1,341,224      $    (295,932)




                                                                                                  149
                                               DESCRIPTION OF
                                              FIDUCIARY FUNDS


Fiduciary funds are used to account for assets held by a government in a trustee capacity for individuals, private
organizations, other governments or other funds.

A list and description of the fiduciary funds maintained by the City follows:

CUSTODIAL FUNDS are used to report fiduciary activities that are not required to be reported in pension (and
other employee benefit) trust funds, investment trust funds, or private-purpose trust funds.

Collector – to account for the collections and disbursement of funds to other entities and individuals and to
account for payroll withholdings and their remittance to the appropriate governmental agencies.

Current Tax – to account for levy, collection and payment of taxes levied for the general and other funds of the
City, county, public school districts, and other governmental entities.

Rehab Loan Escrow – to account for deposits made by housing rehabilitation program participants and their
expenditures for the intended purposes.




                                                        119
                                                        150
                                                     City of Muskegon
                                   COMBINING STATEMENT OF NET POSITION
                                               Custodial Funds
                                                June 30, 2022


                                                    Total                               Current       Rehab Loan
                                               Custodial Funds         Collector          Tax           Escrow
ASSETS
  Cash and investments                         $       816,055     $      815,674   $             -   $      381
  Accounts receivable                                   13,835             13,835                 -            -
         Total assets                                  829,890            829,509                 -          381

LIABILITIES
  Accounts payable                                      19,517             19,136                 -          381
  Due to other governmental units                      622,373            622,373                 -            -
  Deposits held for others                             188,000            188,000                 -            -
         Total liabilities                             829,890            829,509                 -          381

NET POSITION
  Restricted for individuals, organizations,
   and other governments                       $             -     $            -   $             -   $        -




                                                             120
                                                             151
                                                     City of Muskegon
                                    COMBINING STATEMENT OF CHANGES IN NET POSITION
                                                         Custodial Funds
                                                For the year ended June 30, 2022


                                                    Total                                   Current       Rehab Loan
                                                Custodial Funds         Collector            Tax            Escrow
ADDITIONS
  Tax collections for other governments         $    24,329,719     $      378,627      $ 23,951,092      $       -
  Other collections for third parties                 1,521,847          1,521,847                 -              -
      Total additions                                25,851,566          1,900,474          23,951,092            -

DEDUCTIONS
  Payment of taxes to other governments              24,329,719            378,627          23,951,092            -
  Other payments to third parties                     1,521,847          1,521,847                   -            -
      Total deductions                               25,851,566          1,900,474          23,951,092            -

         Change in net position                               -                     -                 -           -

Net position at beginning of year                             -                     -                 -           -

Net position at end of year                     $             -     $               -   $             -   $       -




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                  153
                                        DESCRIPTION OF
                            DISCRETELY PRESENTED COMPONENT UNITS


A list and description of the discretely presented component units maintained by the City are as follows:

Downtown Development Authority – to account for the collection of tax increment revenues, the issuance and
repayment of debt and the construction of public facilities to promote and facilitate economic growth in the
downtown.

Local Development Finance Authority - SmartZone – to account for the collection of tax increment revenues and
the construction of public facilities to promote and facilitate economic growth in the SmartZone Hi-Tech Park.

Tax Increment Finance Authority – to account for the collection of tax increment revenues, the issuance and
repayment of debt to promote and facilitate economic growth in a sub section of the downtown.

Brownfield Redevelopment Authorities – to account for the collection of tax increment revenues for
environmental remediation in designated brownfield areas. Currently there are six designated brownfield areas
capturing tax increments.

      Area I – Betten-Henry Street brownfield site.
      Area II – Former downtown mall brownfield site.
      Area III – Terrace Point brownfield site.
      Area IV – Pigeon Hill brownfield site.
      Area V – Hartshore Marina site.
      Area VI – Scattered housing site.




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                                                       154
                                                                 City of Muskegon
                                                        COMBINING BALANCE SHEET
                                                       Discretely Presented Component Units
                                                                   June 30, 2022


                                                                      Local
                                              Total Discretely     Development
                                                Presented            Finance            Downtown        Tax Increment     Brownfield
                                                Component           Authority -        Development         Finance      Redevelopment
                                                   Units            SmartZone           Authority         Authority       Authorities
      ASSETS
        Cash and investments                  $       403,928      $         46,925    $      336,989   $      20,014   $            -
        Accounts receivable                            32,616                     -            32,616               -                -
              Total assets                    $      436,544       $       46,925      $      369,605   $     20,014    $            -

      LIABILITIES
        Accounts payable                      $       109,697      $              -    $      109,697   $           -   $            -
        Accrued liabilities                             4,289                     -             4,289               -                -
124




        Due to other governmental units                 2,000                     -             2,000               -                -
        Due to primary government                      64,211                     -                 -               -           64,211
        Advances from primary government            1,046,980                     -                 -               -        1,046,980
              Total liabilities                     1,227,177                     -           115,986               -        1,111,191

      FUND BALANCES (DEFICITS)
        Unassigned                                   (790,633)               46,925           253,619          20,014       (1,111,191)
                 Total liabilities and fund
                  balances (deficits)         $      436,544       $       46,925      $      369,605   $     20,014    $            -




                                                                       155
                                                   City of Muskegon
                        RECONCILIATION OF THE GOVERNMENTAL FUNDS
                      BALANCE SHEET TO THE STATEMENT OF NET POSITION
                                Discretely Presented Component Units
                                            June 30, 2022


Total fund balances (deficits)—governmental funds                                                   $    (790,633)

Amounts reported for governmental activities in the Statement of Net Position
are different because:

   Capital assets used in governmental activities are not current financial
   resources and, therefore, are not reported in the governmental funds.
      Cost of capital assets                                                         $ 4,198,258
      Accumulated depreciation                                                        (3,035,729)       1,162,529

   Long-term liabilities in governmental activities are not due and payable in the
   current period and, therefore, are not reported in the governmental funds.
      Accrued interest payable                                                            (7,000)
      Bonds and notes payable                                                         (1,352,248)       (1,359,248)

         Net position of governmental activities                                                    $ (987,352)




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                                                                          City of Muskegon
                       COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
                                                   Discretely Presented Component Units
                                                     For the year ended June 30, 2022


                                                                                Local
                                                      Total Discretely       Development
                                                        Presented              Finance           Downtown      Tax Increment     Brownfield
                                                        Component             Authority -       Development       Finance      Redevelopment
                                                           Units              SmartZone          Authority       Authority       Authorities
      REVENUES
        Property taxes                                $     1,139,110       $          85,861   $    321,446   $      42,475   $      689,328
        Intergovernmental revenues
           State                                               36,895                   3,084              -           9,596           24,215
           Local                                              217,000                 200,000         17,000               -                -
        Investment earnings                                     1,357                     112            543              58              644
        Other                                                 639,439                       -        638,765               -              674
               Total revenues                               2,033,801                 289,057        977,754          52,129          714,861
126




      EXPENDITURES
        Current
          Community and economic development                1,508,284                       -        810,219          50,000          648,065
        Debt service
          Principal                                           245,000                 245,000              -               -                -
          Interest and fees                                    55,240                  37,300              -               -           17,940
               Total expenditures                           1,808,524                 282,300        810,219          50,000          666,005

      Net change in fund balances (deficits)                  225,277                   6,757        167,535           2,129           48,856

      Fund balances (deficits) at beginning of year         (1,015,910)                40,168         86,084          17,885        (1,160,047)

      Fund balances (deficits) at end of year         $     (790,633)       $         46,925    $   253,619    $     20,014    $   (1,111,191)




                                                                                157
                                                    City of Muskegon
                  RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
                REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES (DEFICITS)
                               TO THE STATEMENT OF ACTIVITIES
                                 Discretely Presented Component Units
                                   For the year ended June 30, 2022


Net change in fund balances (deficits)—total governmental funds                                    $   225,277

Amounts reported for governmental activities in the Statement of Activities are
different because:

   Governmental funds report outlays for capital assets as expenditures. However,
   in the Statement of Activities, the cost of these assets is allocated over their
   estimated useful lives and reported as depreciation expense.
       Depreciation expense                                                                            (172,648)

   The issuance of long-term debt provides current financial resources to
   governmental funds, but increases liabilities in the Statement of Net Position.
   Repayment of debt is an expenditure in the governmental funds, but reduces
   long-term liabilities in the Statement of Net Position.
      Repayment of principal on long-term debt                                                         395,000
      Changes in accrual of interest and amortization of premiums and discounts
        Change in accrued interest payable                                            $    2,650
        Amortization of premiums                                                          13,129        15,779
             Change in net position of governmental activities                                     $   463,408




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SCHEDULE OF INDEBTEDNESS




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                                                                       City of Muskegon

                                                             SCHEDULE OF INDEBTEDNESS

                                                                         June 30, 2022

                                                                                                                                                       Annual
                                                      Date            Amount        Interest      Date of                                              Interest
                                                    of Issue          of Issue        Rate        Maturity       6/30/2021          6/30/2022          Payable

Business-Type Activities Bonds and Loans Payable:

 Drinking Water State Revolving                          3/2/2004 $   13,900,000          2.13%     10/01/21 $        775,000   $              -   $            -
  Fund                                                                                    2.13%     10/01/22          790,000            790,000           60,988
                                                                                          2.13%     10/01/23          810,000            810,000           43,988
   Type of debt: state loan                                                               2.13%     10/01/24          825,000            825,000           26,616
   Revenue pledged: water system net revenues                                             2.13%     10/01/25          840,000            840,000            8,925
                                                                                                                    4,040,000          3,265,000          140,517


 Drinking Water State Revolving Fund*                   8/30/2019 $    1,600,000          2.00%    10/01/21            65,000                  -                -
                                                                                          2.00%    10/01/22            70,000             70,000           30,700
  Type of debt: state loan                                                                2.00%    10/01/23            70,000             70,000           29,300
   Revenue Pledged: water system net revenues                                             2.00%    10/01/24            70,000             70,000           27,900
   Forgiveness: 20%                                                                       2.00%    10/01/25            70,000             70,000           26,500
                                                                                          2.00%    10/01/26            75,000             75,000           25,100
                                                                                          2.00%    10/01/27            75,000             75,000           23,600
                                                                                          2.00%    10/01/28            75,000             75,000           22,100
                                                                                          2.00%    10/01/29            75,000             75,000           20,600
                                                                                          2.00%    10/01/30            80,000             80,000           19,100
                                                                                          2.00%    10/01/31            80,000             80,000           17,500
                                                                                          2.00%    10/01/32            80,000             80,000           15,900
                                                                                          2.00%    10/01/33            85,000             85,000           14,300
                                                                                          2.00%    10/01/34            85,000             85,000           12,600
                                                                                          2.00%    10/01/35            85,000             85,000           10,900
                                                                                          2.00%    10/01/36            90,000             90,000            9,200
                                                                                          2.00%    10/01/37            90,000             90,000            7,400
                                                                                          2.00%    10/01/38            90,000             90,000            5,600
                                                                                          2.00%    10/01/39            95,000             95,000            3,800
                                                                                          2.00%    10/01/40            86,874             95,000            1,900
                                                                                                                    1,591,874          1,535,000          324,000


 Sanitary Sewer State Revolving Fund*                   8/30/2019 $    2,875,000          2.00%    10/01/21           120,000                  -                -
                                                                                          2.00%    10/01/22           120,000            120,000           53,900
  Type of debt: state loan                                                                2.00%    10/01/23           125,000            125,000           51,450
  Revenue Pledged: sanitary sewer system net revenues                                     2.00%    10/01/24           125,000            125,000           48,950
  Forgiveness: 75%                                                                        2.00%    10/01/25           130,000            130,000           46,400
                                                                                          2.00%    10/01/26           130,000            130,000           43,800
                                                                                          2.00%    10/01/27           135,000            135,000           41,150
                                                                                          2.00%    10/01/28           135,000            135,000           38,450
                                                                                          2.00%    10/01/29           140,000            140,000           35,700
                                                                                          2.00%    10/01/30           140,000            140,000           32,900
                                                                                          2.00%    10/01/31           145,000            145,000           30,050
                                                                                          2.00%    10/01/32           145,000            145,000           27,150
                                                                                          2.00%    10/01/33           150,000            150,000           24,200
                                                                                          2.00%    10/01/34           150,000            150,000           21,200
                                                                                          2.00%    10/01/35           155,000            155,000           18,150
                                                                                          2.00%    10/01/36           139,459            160,000           15,000
                                                                                          2.00%    10/01/37                 -            160,000           11,800
                                                                                          2.00%    10/01/38                 -            165,000            8,550
                                                                                          2.00%    10/01/39                 -            170,000            5,200
                                                                                          2.00%    10/01/40                 -            175,000            1,750
                                                                                                                    2,184,459          2,755,000          555,750


 Drinking Water State Revolving Fund*                   9/30/2020 $    3,844,750          2.00%    04/01/22          154,750                   -                -
                                                                                          2.00%    04/01/23          160,000             160,000           65,882
  Type of debt: state loan                                                                2.00%    04/01/24          165,000             165,000           62,682
   Revenue Pledged: water system net revenues                                             2.00%    04/01/25          170,000             170,000           59,382
   Forgiveness: 9%                                                                        2.00%    04/01/26          135,296             170,000           55,982
                                                                                          2.00%    04/01/27                -             175,000           52,582
                                                                                          2.00%    04/01/28                -             180,000           49,082
                                                                                          2.00%    04/01/29                -             180,000           45,482
                                                                                          2.00%    04/01/30                -             185,000           41,882
                                                                                          2.00%    04/01/31                -             190,000           38,182
                                                                                          2.00%    04/01/32                -             195,000           34,382
                                                                                          2.00%    04/01/33                -             195,000           30,482
                                                                                          2.00%    04/01/34                -             200,000           26,582
                                                                                          2.00%    04/01/35                -             205,000           22,582
                                                                                          2.00%    04/01/36                -             210,000           18,482
                                                                                          2.00%    04/01/37                -             215,000           14,282
                                                                                          2.00%    04/01/38                -             220,000            9,982
                                                                                          2.00%    04/01/39                -             220,000            5,582
                                                                                          2.00%    04/01/40                -              59,101            1,182
                                                                                                                     785,046           3,294,101          634,676




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                                                                                              City of Muskegon

                                                                                  SCHEDULE OF INDEBTEDNESS

                                                                                                    June 30, 2022

                                                                                                                                                                                   Annual
                                                                            Date             Amount            Interest     Date of                                                Interest
                                                                          of Issue           of Issue            Rate       Maturity        6/30/2021          6/30/2022           Payable

Business-Type Activities Bonds and Loans Payable—Continued:

 Sanitary Sewer State Revolving Fund*                                     9/30/2020 $          3,772,000            2.00%    04/01/22 $          152,000   $              -    $            -
                                                                                                                    2.00%    04/01/23            155,000            155,000            72,400
   Type of debt: state loan                                                                                         2.00%    04/01/24            148,074            160,000            69,300
    Revenue Pledged: water system net revenues                                                                      2.00%    04/01/25                  -            165,000            66,100
    Forgiveness: 20%                                                                                                2.00%    04/01/26                  -            170,000            62,800
                                                                                                                    2.00%    04/01/27                  -            170,000            59,400
                                                                                                                    2.00%    04/01/28                  -            175,000            56,000
                                                                                                                    2.00%    04/01/29                  -            180,000            52,500
                                                                                                                    2.00%    04/01/30                  -            185,000            48,900
                                                                                                                    2.00%    04/01/31                  -            185,000            45,200
                                                                                                                    2.00%    04/01/32                  -            190,000            41,500
                                                                                                                    2.00%    04/01/33                  -            190,000            37,700
                                                                                                                    2.00%    04/01/34                  -            195,000            33,900
                                                                                                                    2.00%    04/01/35                  -            200,000            30,000
                                                                                                                    2.00%    04/01/36                  -            205,000            26,000
                                                                                                                    2.00%    04/01/37                  -            210,000            21,900
                                                                                                                    2.00%    04/01/38                  -            215,000            17,900
                                                                                                                    2.00%    04/01/39                  -            220,000            13,400
                                                                                                                    2.00%    04/01/40                  -            225,000             9,000
                                                                                                                    2.00%    04/01/41                  -            130,614             4,500
                                                                                                                                                 455,074          3,525,614           768,400
TOTAL BUSINESS TYPE ACTIVITIES BONDS AND LOAN PAYABLE:                                                                                  $      9,056,453   $     14,374,715    $    2,423,343

*If certain conditions are met, a portion of the principal amount on these debts may be forgiven.

Governmental Activities Bonds and Loan Payable:

 Capital Improvement Refunding Bonds of 2016                                3/8/2016 $         4,815,000            3.00%    10/01/21 $          305,000   $              -    $            -
 ($159,903 unamortized premium)                                                                                     3.00%    10/01/22            300,000            300,000           132,900
                                                                                                                    3.00%    10/01/23            300,000            300,000           122,400
    Type of debt: limited general obligation bonds                                                                  4.00%    10/01/24            320,000            320,000           110,000
    Revenue pledged: general revenues                                                                               4.00%    10/01/25            325,000            325,000            97,100
                                                                                                                    4.00%    10/01/26            325,000            325,000            84,100
                                                                                                                    4.00%    10/01/27            325,000            325,000            71,100
                                                                                                                    4.00%    10/01/28            325,000            325,000            58,100
                                                                                                                    4.00%    10/01/29            325,000            325,000            45,100
                                                                                                                    4.00%    10/01/30            325,000            325,000            32,100
                                                                                                                    4.00%    10/01/31            320,000            320,000            19,200
                                                                                                                    4.00%    10/01/32            320,000            320,000             6,400
                                                                                                                                               3,815,000          3,510,000           778,500


 Capital Improvement Bonds of 2011                                        9/30/2011 $          2,000,000            2.98%    09/01/21           230,000                    -                  -
  (streets)                                                                                                                                     230,000                    -                  -

    Type of debt: limited general obligation bonds
    Revenue pledged: gas tax, general revenues


 Capital Improvement Bonds of 2019                                        10/9/2019 $         19,420,000            1.83%    10/01/21           205,000                   -                 -
  Convention Center                                                                                                 1.88%    10/01/22           250,000             250,000           607,985
 ($128,150 unamortized discount)                                                                                    1.93%    10/01/23           300,000             300,000           602,740
                                                                                                                    2.00%    10/01/24           320,000             320,000           596,645
    Type of debt: limited general obligation bonds                                                                  2.10%    10/01/25           340,000             340,000           589,875
    Revenue Pledged: excise tax on hotel rooms levied by the                                                        2.24%    10/01/26           360,000             360,000           582,273
    County of Muskegon pursuant to Act 263                                                                          2.34%    10/01/27           380,000             380,000           573,795
                                                                                                                    2.43%    10/01/28           405,000             405,000           564,429
                                                                                                                    2.60%    10/01/29           430,000             430,000           553,918
                                                                                                                    2.60%    10/01/30           455,000             455,000           542,412
                                                                                                                    2.68%    10/01/31           480,000             480,000           530,066
                                                                                                                    2.78%    10/01/32           510,000             510,000           516,544
                                                                                                                    2.83%    10/01/33           540,000             540,000           501,815
                                                                                                                    2.93%    10/01/34           570,000             570,000           485,822
                                                                                                                    3.30%    10/01/35           605,000             605,000           467,399
                                                                                                                    3.30%    10/01/36           640,000             640,000           446,670
                                                                                                                    3.30%    10/01/37           680,000             680,000           424,692
                                                                                                                    3.30%    10/01/38           720,000             720,000           401,382
                                                                                                                    3.30%    10/01/39           760,000             760,000           376,740
                                                                                                                    3.48%    10/01/40           800,000             800,000           350,166
                                                                                                                    3.48%    10/01/41           845,000             845,000           321,543
                                                                                                                    3.48%    10/01/42           895,000             895,000           291,267
                                                                                                                    3.48%    10/01/43           940,000             940,000           259,338
                                                                                                                    3.48%    10/01/44           995,000             995,000           225,669
                                                                                                                    3.58%    10/01/45         1,045,000           1,045,000           189,651
                                                                                                                    3.58%    10/01/46         1,105,000           1,105,000           151,165
                                                                                                                    3.58%    10/01/47         1,160,000           1,160,000           110,622
                                                                                                                    3.58%    10/01/48         1,225,000           1,225,000            67,931
                                                                                                                    3.58%    10/01/49         1,285,000           1,285,000            23,001
                                                                                                                                             19,245,000          19,040,000        11,355,555




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                                                                    City of Muskegon

                                                            SCHEDULE OF INDEBTEDNESS

                                                                      June 30, 2022

                                                                                                                                                      Annual
                                                       Date        Amount        Interest      Date of                                                Interest
                                                     of Issue      of Issue        Rate        Maturity        6/30/2021           6/30/2022          Payable

Governmental Activities Bonds and Loan Payable—Continued:

 Capital Improvement Bonds of 2020                  11/12/2020 $    4,325,000          4.00%    10/01/21 $          320,000    $              -   $            -
 Series 2020A                                                                          4.00%    10/01/22            335,000             335,000          170,800
 ($673,024 unamortized premium)                                                        4.00%    10/01/23            360,000             360,000          156,900
                                                                                       4.00%    10/01/24            370,000             370,000          142,300
   Type of debt: limited general obligation bonds                                      4.00%    10/01/25            385,000             385,000          127,200
   Revenue pledged: general revenues                                                   5.00%    10/01/26            405,000             405,000          109,375
                                                                                       5.00%    10/01/27            420,000             420,000           88,750
                                                                                       5.00%    10/01/28            445,000             445,000           67,125
                                                                                       5.00%    10/01/29            470,000             470,000           44,250
                                                                                       5.00%    10/01/30            485,000             485,000           20,375
                                                                                       2.50%    10/01/31             30,000              30,000            7,875
                                                                                       2.50%    10/01/32             30,000              30,000            7,125
                                                                                       2.50%    10/01/33             30,000              30,000            6,375
                                                                                       2.50%    10/01/34             30,000              30,000            5,625
                                                                                       2.50%    10/01/35             35,000              35,000            4,813
                                                                                       2.50%    10/01/36             35,000              35,000            3,937
                                                                                       2.50%    10/01/37             35,000              35,000            3,063
                                                                                       2.50%    10/01/38             35,000              35,000            2,187
                                                                                       2.50%    10/01/39             35,000              35,000            1,313
                                                                                       2.50%    10/01/40             35,000              35,000              437
                                                                                                                  4,325,000           4,005,000          969,825


 Capital Improvement Bonds of 2020                  11/12/2020 $    2,055,000          0.68%    10/01/21             85,000                   -                -
 Series 2020B                                                                          0.68%    10/01/22             85,000              85,000           45,546
                                                                                       0.68%    10/01/23             90,000              90,000           44,951
   Type of debt: limited general obligation bonds                                      1.35%    10/01/24             90,000              90,000           44,038
   Revenue pledged: general revenues                                                   1.35%    10/01/25             90,000              90,000           42,823
                                                                                       1.35%    10/01/26             90,000              90,000           41,608
                                                                                       2.00%    10/01/27             95,000              95,000           40,050
                                                                                       2.00%    10/01/28             95,000              95,000           38,150
                                                                                       2.00%    10/01/29             95,000              95,000           36,250
                                                                                       2.00%    10/01/30            100,000             100,000           34,300
                                                                                       2.60%    10/01/31            100,000             100,000           32,000
                                                                                       2.60%    10/01/32            105,000             105,000           29,335
                                                                                       2.60%    10/01/33            105,000             105,000           26,605
                                                                                       2.60%    10/01/34            110,000             110,000           23,810
                                                                                       3.20%    10/01/35            110,000             110,000           20,950
                                                                                       3.20%    10/01/36            115,000             115,000           17,680
                                                                                       3.20%    10/01/37            120,000             120,000           13,920
                                                                                       3.20%    10/01/38            120,000             120,000           10,080
                                                                                       3.20%    10/01/39            125,000             125,000            6,160
                                                                                       3.20%    10/01/40            130,000             130,000            2,080
                                                                                                                  2,055,000           1,970,000          550,335


 Installment Purchase Agreement of 2021              9/15/2021 $    1,370,873          1.78%    09/25/22                   -            268,269           18,471
  (fire tower ladder truck)                                                            1.78%    09/25/23                   -            273,023           13,717
                                                                                       1.78%    09/25/24                   -            277,860            8,880
   Type of debt: installment purchase agreements                                       1.78%    09/25/25                   -            282,784            3,956
   Revenue pledged: general revenues                                                   1.78%    09/25/26                   -             71,475              210
                                                                                                                           -          1,173,411           45,234

TOTAL GOVERNMENTAL ACTIVITIES BONDS AND LOANS PAYABLE                                                      $    29,670,000     $     29,698,411   $   13,699,449

TOTAL PRIMARY GOVERNMENT BONDS AND LOANS PAYABLE                                                           $    38,726,453     $     44,073,126   $   16,122,792




Discretely Presented Component Unit Bonds and Loans Payable:

 Local Development Finance Authority                 3/20/2012 $    4,100,000          4.00%     11/01/21 $         245,000    $              -   $            -
 Smartzone Refunding Bonds                                                             3.00%     11/01/22           255,000             255,000           28,575
 ($16,547 unamortized premium)                                                         3.00%     11/01/23           265,000             265,000           20,775
                                                                                       3.00%     11/01/24           275,000             275,000           12,675
   Type of debt: limited general obligation bonds                                      3.00%     11/01/25           285,000             285,000            4,275
   Revenue pledged: LDFA tax increments, general revenues                                                         1,325,000           1,080,000           66,300

TOTAL DISCRETELY PRESENTED COMPONENT UNIT BONDS AND LOANS PAYABLE                                          $      1,325,000    $      1,080,000   $       66,300

TOTAL REPORTING ENTITY BONDS AND LOANS PAYABLE                                                             $    40,051,453     $     45,153,126   $   16,189,092




                                                                                132
                                                                                163
                                       Statistical Section
This part of the City of Muskegon’s Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the City’s overall
financial health.


Contents                                                                                            Page

Financial Trends

These schedules contain trend information to help the reader understand how the
City’s financial performance and well-being have changed over time.                                  134


Revenue Capacity

These schedules contain information to help the reader assess the factors affecting
the City’s ability to generate its property and sales taxes.                                         139


Debt Capacity

These schedules present information to help the reader assess the affordability of
the City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future.                                                                                  146


Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place
and to help make comparisons over time and with other governments.                                   150


Operating Information

These schedules contain information about the City’s operations and resources to help
the reader understand how the City’s financial information relates to the services the
City provides and the activities it performs.                                          152



Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual
Financial Reports for the relevant year.




                                                    133
                                                    164
                                                                                                     City of Muskegon

                                                                                         NET POSITION BY COMPONENT

                                                                                                   Last Ten Fiscal Years




                                                                                  2013               2014            2015 (a)         2016             2017             2018 (b)          2019             2020            2021            2022

      Governmental Activities
      Net Investment in Capital Assets                                        $   63,842,092   $    63,731,255   $   63,514,691   $   64,326,891 $     62,520,466 $     61,267,518 $      66,734,006 $     70,274,679 $    72,200,515 $    75,201,511
      Restricted                                                                   4,572,848         4,023,895        4,807,531        4,140,342        3,777,410        6,138,596         5,519,207        4,459,799       5,003,269       5,845,255
      Unrestricted                                                                13,299,523        12,811,852          491,914       (4,142,119)      (5,566,349)      (8,350,634)      (14,355,143)     (28,084,776)    (29,065,065)    (22,938,317)
      Total Governmental Net Position                                         $   81,714,463   $    80,567,002   $   68,814,136   $   64,325,114 $     60,731,527 $     59,055,480 $      57,898,070 $     46,649,702 $    48,138,719 $    58,108,449



      Business-type Activities
      Net Investment in Capital Assets                                        $   40,032,858   $    39,365,043   $   39,231,223   $   39,013,529   $   38,114,686   $   38,549,547   $   41,741,666   $   44,543,391 $    54,257,461 $    54,668,925
      Restricted                                                                     599,500           599,500          599,500          599,500          599,500          599,500          599,500          599,500         822,000         822,000
      Unrestricted                                                                 8,491,848         8,377,093        6,423,540        5,762,272        6,382,906        6,041,091        2,424,616       (2,353,801)       (873,805)        424,949
      Total Business-type Activities Net Position                             $   49,124,206   $    48,341,636   $   46,254,263   $   45,375,301   $   45,097,092   $   45,190,138   $   44,765,782   $   42,789,090 $    54,205,656 $    55,915,874



      Primary Government
      Net Investment in Capital Assets                                        $ 103,874,950    $ 103,096,298     $ 102,745,914    $ 103,340,420    $ 100,635,152    $  99,817,065 $ 108,475,672 $ 114,818,070 $ 126,457,976 $ 129,870,436
      Restricted                                                                  5,172,348        4,623,395         5,407,031        4,739,842        4,376,910        6,738,096     6,118,707     5,059,299     5,825,269     6,667,255
      Unrestricted                                                               21,791,371       21,188,945         6,915,454        1,620,153          816,557       (2,309,543)  (11,930,527)  (30,438,577)  (29,938,870)  (22,513,368)
      Total Primary Government Net Position                                   $ 130,838,669    $ 128,908,638     $ 115,068,399    $ 109,700,415    $ 105,828,619    $ 104,245,618 $ 102,663,852 $ 89,438,792 $ 102,344,375 $ 114,024,323
134




      (a) In 2015, the City implemented GASB 68 and 71 which changed how governments measure and report pension liabilities.
      (b) In 2018, the City implemented GASB 75 which changed how governments measure and report other postemployment benefit liabilities.


      SOURCE: The information in these schedules (unless otherwise
      noted) is derived from the comprehensive annual financial reports for
      the relevant year.




                                                                                                                           165
                                                                                         City of Muskegon

                                                                                CHANGES IN NET POSITION

                                                                                        Last Ten Fiscal Years




                                                       2013             2014             2015 (a)           2016              2017            2018 (b)          2019             2020             2021             2022

      EXPENSES
      Governmental Activities
      Public representation                       $      893,981   $    1,030,006   $        939,907   $     1,107,551   $    1,113,897   $    1,347,618   $    1,336,014   $    1,501,079   $    1,603,410   $    1,715,050
      Administrative services                            565,307          543,425            614,757           663,077          679,139          507,275          800,887          962,981          826,344          913,923
      Financial services                               2,241,061        2,171,958          2,547,766         2,331,236        2,483,519        1,995,426        2,700,775        3,007,018        5,039,787        5,473,498
      Public safety                                   12,987,842       12,946,466         14,243,233        17,118,742       16,910,473       12,404,126       20,433,642       25,982,246       18,249,379       13,387,378
      Public works                                     3,201,806        3,361,422          3,183,627         3,109,454        3,551,230        3,471,618        4,438,358        4,581,526        4,025,982        4,687,660
      Highways, streets and bridges                    6,672,374        7,053,326          7,165,703         7,251,882        6,996,540        6,917,260        7,185,642        7,593,019        6,862,862        7,308,858
      Community and economic development               2,499,404        2,417,518          2,712,131         5,223,431        3,738,566        5,015,160        2,890,216        5,359,282        4,999,907        9,857,082
      Culture and recreation                           1,592,358        1,671,185          1,806,790         3,551,692        3,918,814        3,994,582        4,541,739        5,269,578        4,507,120        6,588,542
      General administration                             322,348          366,634            389,248           326,452          301,287          376,112          302,582          389,863          404,303          511,323
      Interest on long-term debt                         291,535          277,345            271,607           248,223          172,591          165,023          151,304          732,065        1,112,166          881,204
      Total Governmental Activities Expenses          31,268,016       31,839,285         33,874,769        40,931,740       39,866,056       36,194,200       44,781,159       55,378,657       47,631,260       51,324,518

      Business-type Activities
      Water                                            6,228,788        6,016,192          6,047,244         6,750,826        7,206,564        7,090,770        7,752,703        8,437,862        8,612,574        9,261,276
      Sewer                                            7,226,839        7,582,602          8,460,509         8,669,469        8,876,690        8,093,752        9,119,941        9,902,515        8,084,729        8,153,673
      Marina and launch ramp                             426,553          503,997            305,990           327,832          336,912          377,614          430,431          529,007          515,025          461,504
      Total Business-type Activities Expenses         13,882,180       14,102,791         14,813,743        15,748,127       16,420,166       15,562,136       17,303,075       18,869,384       17,212,328       17,876,453
      Total Primary Government Expenses           $   45,150,196   $   45,942,076   $     48,688,512   $    56,679,867   $   56,286,222   $   51,756,336   $   62,084,234   $   74,248,041   $   64,843,588   $   69,200,971


      PROGRAM REVENUES
      Governmental Activities
      Charges for Services
         Public representation                    $      173,739   $      189,444   $        188,638   $       226,559   $      228,767   $      232,736   $      250,931   $      253,511   $      280,395   $      324,314
135




         Administrative services                         268,535          325,937            415,308           474,737          572,739          539,178          604,290          538,791          504,281          715,421
         Financial services                              830,919          871,632            823,547           925,474          895,924          903,322          921,748          913,968          988,501        1,085,220
         Public safety                                 1,133,666        1,407,722          1,218,644         1,248,911        1,824,114        2,794,347        2,292,158        2,290,640        2,207,996        2,680,675
         Public works                                    671,494          796,739            571,426           379,877          646,876          743,110          691,312          835,149          828,098          854,793
         Highways, streets and bridges                   245,609          351,962            258,475           234,861          256,190          188,248          191,883          193,267          187,478          522,779
         Community and economic development              432,240          477,486            576,863           444,632          706,195          348,933          786,120          769,860          912,247          498,766
         Culture and recreation                          606,818          535,211            368,168         1,229,067        1,463,839        1,651,304        1,853,547        2,124,968        1,976,029        4,389,524
         General administration                          287,729           50,728             48,764            52,512           37,892           38,549           40,400           59,537           65,592           76,182
      Operating grants and contributions               4,681,345        4,664,098          5,071,239         5,330,825        5,208,818        6,478,526        6,892,530        7,398,202        9,839,245       11,024,058
      Capital grants and contributions                   886,108        1,408,424          3,496,623         3,804,656          862,074        2,305,620        4,015,097        4,064,216        2,901,176        2,815,119
      Total Governmental Program Revenues             10,218,202       11,079,383         13,037,695        14,352,111       12,703,428       16,223,873       18,540,016       19,442,109       20,691,038       24,986,851

      Business-type Activities
      Water                                            5,890,614        6,099,480          6,375,869         7,485,013        7,430,314        7,445,669        7,946,983        8,316,552        8,752,570        8,903,549
      Sewer                                            7,058,315        6,633,911          6,363,808         6,305,554        7,620,208        8,217,497        8,098,828        8,397,838        9,298,156       10,298,642
      Marina and launch ramp                             234,229          228,339            255,638           287,547          278,753          325,917          298,312           74,659          178,706          292,416
      Operating grants and contributions                   6,188                -                  -                 -            2,436           42,531          510,533           94,462                -          103,208
      Capital grants and contributions                    88,046          327,240            474,681           765,363          784,969                -                -                -       10,354,544                -
      Total Business-type program revenues            13,277,392       13,288,970         13,469,996        14,843,477       16,116,680       16,031,614       16,854,656       16,883,511       28,583,976       19,597,815
      Total Primary Government program revenues   $   23,495,594   $   24,368,353   $     26,507,691   $    29,195,588   $   28,820,108   $   32,255,487   $   35,394,672   $   36,325,620   $   49,275,014   $   44,584,666

      NET (EXPENSE) REVENUE
      Governmental Activities                     $   (21,049,814) $   (20,759,902) $    (20,837,074) $    (26,579,629) $    (27,162,628) $   (19,970,327) $   (26,241,143) $   (35,936,548) $   (26,940,222) $   (26,337,667)
      Business-type Activities                           (604,788)        (813,821)       (1,343,747)         (904,650)         (303,486)         469,478         (448,419)      (1,985,873)      11,371,648        1,721,362
      Total Primary Government net expense        $   (21,654,602) $   (21,573,723) $    (22,180,821) $    (27,484,279) $    (27,466,114) $   (19,500,849) $   (26,689,562) $   (37,922,421) $   (15,568,574) $   (24,616,305)




                                                                                               166
                                                                                                                              City of Muskegon

                                                                                                                    CHANGES IN NET POSITION

                                                                                                                             Last Ten Fiscal Years




                                                                                           2013             2014              2015 (a)           2016             2017             2018 (b)          2019              2020            2021             2022

      GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
      Governmental Activities
      Property taxes                                                                   $    7,592,847   $    7,383,236   $      7,894,189   $     8,366,212   $    8,389,243   $    8,450,103    $    8,230,573   $    8,466,886   $    8,813,155 $      9,182,184
      Income taxes                                                                          8,057,145        7,762,719          8,478,231         8,386,775        8,707,279        8,995,294         8,939,887        9,437,451        9,609,218       10,020,370
      Franchise fees                                                                          358,785          358,754            369,965           372,117          378,955          368,495           380,343          361,405          374,219          369,420
      Grants and contributions not restricted for specific programs                         3,700,871        3,813,221          3,989,178         4,051,050        4,630,111        4,955,168         5,102,602        5,276,036        6,427,138       15,303,423
      Unrestricted investment earnings                                                         73,157          146,590             99,733           189,408          106,653           92,771           546,533          568,408          229,177         (644,067)
      Miscellaneous                                                                           102,388          124,085            805,432           626,014          512,738          545,536           550,381          577,677          370,268          918,179
      Gain on sale of capital asset                                                            44,899           23,836             20,302            99,031          844,062          712,415         1,333,414              317        2,641,064        1,122,888
      Transfers                                                                                     -                -                  -                 -                -                -                 -                -          (35,000)          35,000
      Total Governmental Program Revenues                                                  19,930,092       19,612,441         21,657,030        22,090,607       23,569,041       24,119,782        25,083,733       24,688,180       28,429,239       36,307,397

      Business-type Activities
      Unrestricted investment earnings                                                         33,148           31,251             29,879            25,688           25,277           28,550            24,063            9,181            9,918           23,856
      Transfers                                                                                     -                -                  -                 -                -                -                 -                -           35,000          (35,000)
      Total Business-type program revenues                                                     33,148           31,251             29,879            25,688           25,277           28,550            24,063            9,181           44,918          (11,144)
      Total Primary Government program revenues                                        $   19,963,240   $   19,643,692   $     21,686,909   $    22,116,295   $   23,594,318   $   24,148,332    $   25,107,796   $   24,697,361   $   28,474,157   $   36,296,253

      CHANGE IN NET POSITION
      Governmental Activities                                                          $   (1,119,722) $    (1,147,461) $         819,956 $      (4,489,022) $    (3,593,587) $      4,149,455   $   (1,157,410) $    (11,248,368) $    1,489,017   $    9,969,730
      Business-type Activities                                                               (571,640)        (782,570)        (1,313,868)         (878,962)        (278,209)          498,028         (424,356)       (1,976,692)     11,416,566        1,710,218
      Total Primary Government                                                         $   (1,691,362) $    (1,930,031) $        (493,912) $     (5,367,984) $    (3,871,796) $      4,647,483   $   (1,581,766) $    (13,225,060) $   12,905,583   $   11,679,948


      (a) In 2015, the City implemented GASB 68 and 71 which changed how governments measure and report pension liabilities.
136




      (b) In 2018, the City implemented GASB 75 which changed how governments measure and report other postemployment benefit liabilities.


      SOURCE: The information in these schedules (unless otherwise noted) is
      derived from the comprehensive annual financial reports for the relevant year.




                                                                                                                                    167
                                                                                              City of Muskegon

                                                                           FUND BALANCE OF GOVERNMENTAL FUNDS

                                                                                          Last Ten Fiscal Years




                                                           2013          2014          2015           2016         2017          2018          2019          2020         2021          2022

      General fund
      Nonspendable                                     $     447,341 $     300,952 $     220,178 $     232,332 $     209,353 $     222,458 $     241,684 $     280,986 $    269,920 $    881,961
      Restricted                                                   -             -             -             -             -             -             -             -       66,965        8,701
      Committed                                                    -             -             -             -             -             -             -             -       39,000      189,037
      Assigned                                             2,292,495     1,700,000     1,700,000     1,700,000     1,700,000     1,700,000     1,700,000     1,700,000    1,700,000    1,800,000
      Unassigned                                           4,613,722     5,495,145     5,883,318     6,098,977     6,148,292     6,469,108     6,563,511     5,920,869    9,121,955    7,981,674
      Total general fund                               $   7,353,558 $   7,496,097 $   7,803,496 $   8,031,309 $   8,057,645 $   8,391,566 $   8,505,195 $   7,901,855 $ 11,197,840 $ 10,861,373

      All other governmental funds
      Nonspendable                                     $   1,547,793 $   1,556,347 $   2,073,747 $   1,597,371 $   1,716,825 $   1,589,699 $   1,624,737 $ 1,663,979 $ 1,709,000 $     1,737,125
      Restricted                                           2,749,396     2,305,385     3,159,130     2,995,610     2,726,754     5,130,188     4,621,126    3,842,461    4,397,502     5,170,662
      Assigned                                             2,087,359     1,729,457     2,146,050     1,373,669     3,510,747     2,619,342     1,823,959    9,764,600    1,907,590     2,195,895
      Unassigned                                             (82,048)     (100,054)            -             -             -             -             -   (1,601,331)  (2,919,404)            -
      Total all other governmental funds               $   6,302,500 $   5,491,135 $   7,378,927 $   5,966,650 $   7,954,326 $   9,339,229 $   8,069,822 $ 13,669,709 $ 5,094,688 $    9,103,682


      SOURCE: The information in these schedules
137




      (unless otherwise noted) is derived from the
      comprehensive annual financial reports for the
      relevant year.




                                                                                                 168
                                                                                                           City of Muskegon

                                                                            CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

                                                                                                         Last Ten Fiscal Years




                                                                       2013              2014            2015            2016            2017              2018            2019             2020            2021             2022

      Revenues
      Taxes                                                       $ 14,832,027      $ 14,954,904      $ 15,830,137    $ 16,178,761    $ 16,667,272    $ 16,877,055      $ 16,582,030    $ 17,253,857 $ 17,700,658 $ 18,795,646
      Intergovernmental                                              9,403,554         9,945,065        12,301,594      11,711,788      10,743,434      13,488,014        15,776,333      16,777,402   18,131,093   28,487,691
      Charges for services                                           2,769,227         2,569,335         2,468,889       3,468,938       3,918,217       4,229,797         4,430,419       4,563,652    4,898,325    7,744,999
      Other                                                          2,795,952         3,256,324         4,003,105       3,868,958       4,005,126       5,251,208         5,312,773       5,745,006    5,745,273    5,399,182
      Total revenues                                                29,800,760        30,725,628        34,603,725      35,228,445      35,334,049      39,846,074        42,101,555      44,339,917   46,475,349   60,427,518

      Expenditures
      Public representation                                              892,113         1,031,984         930,788       1,064,503       1,080,032         1,383,573       1,281,107       1,379,406        1,556,327       1,758,928
      Administrative services                                            508,130           497,025         554,330         577,454         624,284           537,913         739,301         844,270          783,403         945,841
      Financial services                                               2,196,917         2,197,651       2,476,740       2,068,208       2,236,941         2,191,245       2,394,866       2,358,848        4,810,339       5,668,254
      Public safety                                                   12,724,094        12,987,898      13,285,004      13,476,557      14,086,619        15,156,977      16,131,196      16,820,356       14,641,568      15,781,113
      Public works                                                     2,878,328         2,918,305       2,876,576       2,864,878       3,206,050         3,377,174       4,176,904       4,187,956        3,604,722       4,472,813
      Highways, streets and bridges                                    2,815,337         3,011,611       2,986,909       3,102,391       3,096,875         4,554,968       2,963,498       2,965,598        2,666,529       3,330,669
      Community and economic development                               2,578,073         2,687,933       2,957,071       5,415,436       3,878,547         3,962,759       2,930,725       4,986,000        5,281,825      10,306,669
      Culture and recreation                                           1,248,174         1,308,481       1,444,471       3,100,338       3,523,178         3,713,177       4,050,986       4,662,534        3,836,817       6,085,847
      Other governmental functions                                       299,812           643,666         369,408         305,807         280,416           355,241         281,711         371,461          380,232         485,024
      Debt service
138




       Principal                                                         395,211           402,492         417,842         428,199         283,563           288,934         294,313         818,285        2,813,804       1,342,462
       Interest                                                          292,554           278,412         272,946         257,516         211,242           197,723         189,905         543,740          943,216       1,011,004
       Issuance costs                                                          -                 -               -          97,578               -                 -               -          70,525          140,750           1,000
      Capital outlay                                                   3,230,586         3,577,837       3,992,111       3,867,579       2,328,615         3,134,369       9,363,862      21,498,055       19,695,829       7,775,915
      Total expenditure                                               30,059,329        31,543,295      32,564,196      36,626,444      34,836,362        38,854,053      44,798,374      61,507,034       61,155,361      58,965,539

      Excess of revenues over (under) expenditures                      (258,569)         (817,667)      2,039,529      (1,397,999)       497,687           992,021       (2,696,819)     (17,167,117)    (14,680,012)      1,461,979

      Other financing sources (uses)
      Transfers in                                                     1,356,229           743,035         853,910       1,563,094       1,805,000         1,370,000       1,210,236       2,017,077          895,000        9,832,799
      Transfers out                                                     (784,275)         (771,081)       (942,933)     (1,638,094)     (1,818,000)       (1,385,000)     (1,210,236)     (2,037,077)      (1,555,000)     (10,197,799)
      Long-term debt issued                                                    -                 -               -          97,578               -                 -               -      21,691,740        7,152,424        1,370,873
      Proceeds from sale of capital assets                               190,263           176,887         244,685         190,957       1,529,325           741,803       1,541,041         491,924        2,908,552        1,204,675
      Total other financing sources (uses)                               762,217           148,841         155,662         213,535       1,516,325           726,803       1,541,041      22,163,664        9,400,976        2,210,548

      Net change in fund balances                                 $     503,648     $     (668,826) $    2,195,191    $ (1,184,464) $    2,014,012    $    1,718,824    $ (1,155,778) $    4,996,547     $ (5,279,036) $    3,672,527

      Debt service as a percentage of noncapital
      expenditures                                                         2.56%             2.43%           2.42%           2.09%           1.52%            1.36%            1.37%           3.40%           9.06%            4.60%




      SOURCE: The information in these schedules (unless
      otherwise noted) is derived from the comprehensive annual
      financial reports for the relevant year.




                                                                                                                169
                                                                                                                 City of Muskegon

                                                                                         GOVERNMENTAL ACTIVITIES REVENUES BY SOURCE

                                                                                                              Last Ten Fiscal Years




      Fiscal    Property      % of       Income        % of       Intergo-       % of     Charges for    % of      Licenses         % of       Fines      % of          Interest    % of                  % of                     %
      Year        Tax         Total        Tax         Total     vernmental      Total      Service      Total    and Permits       Total     and Fees    Total        and Rent     Total     Other       Total     Total        Change

      2013     $ 7,325,555    24.6% $ 7,506,472        25.2% $      9,403,554    31.6% $     2,769,227     9.3% $     1,238,285      4.2% $     435,893       1.5% $      267,397    0.9% $     854,377    2.9% $   29,800,760    -4.6%
      2014       7,123,481    23.2%    7,831,423       25.5%        9,945,065    32.4%       2,569,335     8.4%       1,570,137      5.1%       418,691       1.4%        352,153    1.1%       915,343    3.0%     30,725,628     3.1%
      2015       7,555,471    21.8%    8,274,666       23.9%       12,301,594    35.5%       2,468,889     7.1%       1,361,721      3.9%       452,004       1.3%        343,105    1.0%     1,846,275    5.3%     34,603,725    12.6%
      2016       8,026,859    22.8%    8,151,902       23.1%       11,711,788    33.2%       3,468,938     9.8%       1,443,144      4.1%       459,181       1.3%        455,671    1.3%     1,510,962    4.3%     35,228,445     1.8%
      2017       8,056,460    22.8%    8,610,812       24.4%       10,743,434    30.4%       3,918,217    11.1%       1,884,341      5.3%       494,369       1.4%        290,578    0.8%     1,335,838    3.8%     35,334,049     0.3%
      2018       8,118,381    20.4%    8,758,674       22.0%       13,488,014    33.9%       4,229,797    10.6%       2,965,599      7.4%       457,172       1.1%        212,069    0.5%     1,616,368    4.1%     39,846,074    12.8%
      2019       7,890,357    18.7%    8,691,673       20.6%       15,776,333    37.5%       4,430,419    10.5%       2,452,807      5.8%       488,578       1.2%        757,911    1.8%     1,613,477    3.8%     42,101,555     5.7%
      2020       8,116,143    18.3%    9,137,714       20.6%       16,777,402    37.8%       4,563,652    10.3%       2,420,604      5.5%       412,575       0.9%        742,567    1.7%     2,169,260    4.9%     44,339,917     5.3%
      2021       8,443,832    18.2%    9,256,826       19.9%       18,131,093    39.0%       4,898,325    10.5%       2,246,375      4.8%       594,813       1.3%        477,559    1.0%     2,426,526    5.2%     46,475,349     4.8%
      2022       8,793,023    14.6%   10,002,623       16.6%       28,487,691    47.1%       7,744,999    12.8%       2,306,048      3.8%       582,633       1.0%         35,018    0.1%     2,475,483    4.1%     60,427,518    30.0%



      SOURCE: The information in these schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the relevant year.
139




                                                                                                                  170
                                                                                                                                            City of Muskegon

                                                                                                     Taxable, Assessed and Equalized and Estimated Actual Valuation of Property

                                                                                                                                         Last Ten Fiscal Years




                                                                                                                                Taxable Valuation of Property
                                                             Ad Valorem Assessment Roll                                                                          Industrial and Commercial Facilities Assessment Roll

                                                                                                Total                                                       Industrial         Industrial          Commercial                                   Total                              Taxable Value
                                                                                                Real             Personal             Total                    Real             Personal              Real                 Total              Taxable              Total            As a Percent
         Year        Residential      Agriculture         Commercial         Industrial        Property          Property           Ad Valorem               Property           Property            Property            IFT and CFT           Valuation            City                Actual

         2012      $ 312,930,252     $            -   $    134,635,427   $    81,575,476   $   529,141,155   $     91,750,891   $    620,892,046        $      3,587,223   $      6,161,900    $                -   $       9,749,123     $    630,641,169        12.0789              96.40%
         2013        310,252,865                  -        118,856,014        76,331,458       505,440,337         91,730,093        597,170,430               6,677,737          7,472,900                     -          14,150,637          611,321,067        12.0865              96.97%
         2014        312,031,296                  -        115,070,943        61,196,955       488,299,194         91,020,452        579,319,646               3,874,303          6,512,600                     -          10,386,903          589,706,549        13.0875              96.26%
         2015        314,055,244                  -        116,448,947        54,898,389       485,402,580         95,098,912        580,501,492               3,149,352          7,772,000                     -          10,921,352          591,422,844        13.0869              95.28%
         2016        314,299,363                  -        114,855,236        50,232,295       479,386,894         74,155,243        553,542,137               3,628,098          5,690,600                     -           9,318,698          562,860,835        13.0905              93.60%
         2017        319,768,625                  -        113,497,599        50,381,292       483,647,516         67,760,237        551,407,753               3,692,357          4,627,400                     -           8,319,757          559,727,510        13.0908              91.38%
         2018        331,347,976                  -        113,370,852        48,272,032       492,990,860         65,728,440        558,719,300               3,990,263          3,739,800                     -           7,730,063          566,449,363        13.0899              89.69%
         2019        346,233,797                  -        120,836,165        48,156,907       515,226,869         61,993,800        577,220,669               6,561,033          3,146,800                     -           9,707,833          586,928,502        13.0865              87.80%
         2020        362,796,641                  -        125,649,743        48,231,815       536,678,199         67,398,400        604,076,599              14,874,922          2,612,700                     -          17,487,622          621,564,221        13.0865              83.40%
         2021        411,808,285                           143,992,198        53,700,376       609,500,859         73,874,500        683,375,359              15,756,956          1,312,300                                17,069,256          700,444,615        12.9722              93.98%

                                                                                                                    Assessed and Equalized Valuation of Property
                                                             Ad Valorem Assessment Roll                                                                          Industrial and Commercial Facilities Assessment Roll

                                                                                                Total                                                       Industrial         Industrial          Commercial                                   Total            Estimated
                                                                                                Real             Personal             Total                    Real             Personal              Real                 Total              Assessed            Actual
         Year        Residential      Agriculture         Commercial         Industrial        Property          Property           Ad Valorem               Property           Property            Property            IFT and CFT           Valuation            Value
140




         2012      $ 327,226,000     $            -   $    141,238,834   $    84,084,000   $   552,548,834   $     91,740,800   $    644,289,634        $      3,719,300   $      6,161,900    $                -   $       9,881,200     $   654,170,834    $ 1,308,341,668
         2013        321,604,220                  -        123,831,400        79,037,400       524,473,020         91,720,300        616,193,320               6,766,000          7,472,900                     -          14,238,900         630,432,220      1,260,864,440
         2014        326,690,900                  -        120,803,800        63,704,200       511,198,900         91,004,400        602,203,300               3,877,300          6,512,600                     -          10,389,900         612,593,200      1,225,186,400
         2015        335,445,400                  -        122,235,800        57,024,100       514,705,300         95,084,900        609,790,200               3,149,800          7,772,000                     -          10,921,800         620,712,000      1,241,424,000
         2016        342,767,600                  -        122,574,300        52,323,600       517,665,500         74,140,100        591,805,600               3,851,200          5,690,600                     -           9,541,800         601,347,400      1,202,694,800
         2017        363,318,800                  -        120,587,210        52,278,900       536,184,910         67,745,200        603,930,110               3,957,900          4,639,600                     -           8,597,500         612,527,610      1,225,055,220
         2018        382,994,200                  -        124,938,600        50,130,470       558,063,270         65,713,100        623,776,370               4,017,100          3,739,800                     -           7,756,900         631,533,270      1,263,066,540
         2019        409,745,000                  -        135,884,102        51,070,400       596,699,502         61,981,500        658,681,002               6,649,100          3,146,800                     -           9,795,900         668,476,902      1,336,953,804
         2020        461,026,400                  -        146,950,200        52,388,900       660,365,500         67,388,800        727,754,300              14,929,600          2,612,700                     -          17,542,300         745,296,600      1,490,593,200
         2021        580,236,600                           186,202,700        58,746,100       825,185,400         73,866,200        899,051,600              16,273,300          1,312,300                                17,585,600         916,637,200      1,833,274,400


      Property is assessed at 50% of true cash value. The assessed and equalized valuation of taxable property is determined as of December 31st of each year and is the basis upon which taxes are levied during the succeeding fiscal year. The passage of Proposal A in May, 1994 altered
      how tax values are determined. Beginning in the 1995-1996 fiscal year, property taxes are based on taxable value instead of state equalized value. Proposal A also capped taxable value of each parcel of property, adjusted for additions and losses, at the previous year's rate of inflation
      or 5% whichever is less, until the property is sold or transferred. When ownership of a parcel of property is transferred, the taxable value becomes 50% of true cash value, or the state equalized valuation. The Industrial and Commercial Facilities Tax Acts permit certain property to be
      taxed at one-half the tax rate for a period up to twelve years.




                                                                                                                                                   171
                                                                    City of Muskegon

                                                           Principal Property Taxpayers

                                                            Current Year and Ten Years Ago


                                                                    6/30/2022                                        6/30/2013
                                                                                   Percent of                                     Percent of
                                                      Taxable                     Total Taxable        Taxable                   Total Taxable
                       Taxpayer                      Valuation        Rank          Valuation         Valuation        Rank        Valuation

      Consumers Energy                           $     19,074,117       1                 2.86%   $    46,472,581        1                7.4%
      DTE Gas Company                                  15,309,976       2                 2.30%          6,918,200       2                1.1%
      James Street Capital Holdings                    10,214,100       3                 1.53%
      Muskegon SC Holdings LLC                          6,147,883       4                 0.92%          4,240,100       6                0.7%
      Michigan Electric Transmission                    5,871,800       5                 0.88%                                           0.0%
      Glen Oaks Apartments LLC                          3,607,163       6                 0.54%          3,914,200       7                0.6%
      Mercy Health Partners                             3,246,556       7                 0.49%
141




      Core Sherman LLC                                  3,160,129       8                 0.47%
      Verplank Port Facility LLC                        3,035,700       9                 0.46%
      Hinman Lake LLC                                   2,902,866      10                 0.44%
      Adac Plastics                                                                                      6,079,926      5                 1.0%
      Esco Company                                                                                       6,798,181      3                 1.1%
      GE Aviation                                                                                        6,123,500      4                 1.0%
      Coles Quality Foods                                                                                3,491,200      9                 0.6%
      Lorin Industries                                                                                   3,854,731      8                 0.6%
      P&G Holdings NY LLC                                                                                3,462,180      10                0.5%


      Total - 10 Largest                               72,570,290                        10.90%        91,354,799                        14.5%
      Total - All Other                               593,289,262                        89.10%       539,286,370                        85.5%
                                                 $    665,859,552                        100.0%   $   630,641,169                       100.0%




      Source: Muskegon County Equalization Department; City of Muskegon Treasurer's Office




                                                                            172
                                                 City of Muskegon

                      Property Tax Rates - Direct and Overlapping Government Units
                                  Property Tax Rates Per $1,000 Taxable Valuation

                                               Last Ten Fiscal Years



                                                  City-Wide Rates
                                                              Total            Library      Library
     Year        Operating     Promotion      Sanitation       City            District      Debt

     2012             9.5000        0.0789            2.5000        12.0789       2.4000        -
     2013             9.5000        0.0865            2.5000        12.0865       2.4000        -
     2014            10.0000        0.0875            3.0000        13.0875       2.4000        -
     2015            10.0000        0.0869            3.0000        13.0869       2.4000       0.5611
     2016            10.0000        0.0905            3.0000        13.0905       2.4000       0.4962
     2017            10.0000        0.0908            3.0000        13.0908       2.4000       0.4999
     2018            10.0000        0.0899            3.0000        13.0899       2.4000       0.4866
     2019            10.0000        0.0865            3.0000        13.0865       2.4000       0.4522
     2020             9.9930        0.0824            2.9979        13.0733       2.3997       0.4532
     2021             9.9180        0.0788            2.9754        12.9722       2.3821       0.4351

                                                 Overlapping - County-Wide Rates

                 Muskegon      Intermediate    Special          Vocational    Community     MAISD       Community
     Year         County          School      Education         Education      College      Gen Ed      College Debt

     2012             6.6957        0.4597            2.2987         0.9996       2.2037        -                -
     2013             6.6957        0.4597            2.2987         0.9996       2.2037        -                -
     2014             6.6557        0.4597            2.2987         0.9996       2.2037       1.0000           0.3400
     2015             6.6357        0.4597            2.2987         0.9996       2.2037       1.0000           0.3400
     2016             6.8957        0.4597            2.2987         0.9996       2.2037       1.0000           0.3400
     2017             6.8957        0.4597            2.2987         0.9996       2.2037       1.0000           0.3400
     2018             6.8957        0.4597            2.2987         0.9996       2.2037       1.0000           0.3400
     2019             6.8957        0.4597            2.2987         0.9996       2.2037       1.0000           0.3400
     2020             6.8947        0.4593            2.2968         0.9988       2.2034       0.9992           0.3400
     2021             6.8490        0.4562            2.2815         0.9922       2.1888       0.9926           0.3400


                      Overlapping - School District                                              Grand Total

                                                                  State                                   Non-
     Year        Operating        Debt          Total           Education                  Homestead    Homestead

     2012            18.0000        7.1000        25.1000            6.0000                   40.2363          58.2363
     2013            18.0000        7.1000        25.1000            6.0000                   40.2439          58.2439
     2014            18.0000        7.6000        25.6000            6.0000                   43.0449          61.0449
     2015            18.0000        6.8000        24.8000            6.0000                   42.7854          60.7854
     2016            18.0000        6.3500        24.3500            6.0000                   42.5341          60.5341
     2017            18.0000        7.6800        25.6800            6.0000                   43.8681          61.8681
     2018            18.0000        8.3600        26.3600            6.0000                   44.5339          62.5339
     2019            18.0000        8.3600        26.3600            6.0000                   44.4961          62.4961
     2020            17.9838        8.3581        26.3419            6.0000                   44.4765          62.4603
     2021            17.7518        9.3467        27.0985            6.0000                   45.2364          62.9882

SOURCE: City of Muskegon Treasurer' Office




                                                          142
                                                          173
                                                                             City of Muskegon

                                                             PROPERTY TAX LEVIES AND COLLECTIONS

                                                                         Last Ten Fiscal Years




                                                                                                         Charge backs
                   Total        Current         Percent    Delinquent                       Total Tax    On Uncollected   Outstanding   Outstanding    Percent of
      Fiscal        Tax            Tax          Of Levy        Tax        Total Tax        Collections    Delinquent      Delinquent    Delinquent     Delinquent
      Year         Levy        Collections     Collected   Collections   Collections      as % of Levy       Taxes         Personal      Specific     Taxes to Levy

       2012    $   7,872,541   $   6,882,534       87.4% $     915,950   $    7,798,484          99.1% $         27,163   $    68,945   $     5,113          1.29%
       2013        7,668,166       6,703,147       87.4%       912,362        7,615,509          99.3%          102,713        45,361         7,296          2.03%
       2014        8,032,955       7,069,804       88.0%       917,806        7,987,610          99.4%           57,680        41,074         2,788          1.26%
       2015        8,132,782       7,247,701       89.1%       848,266        8,095,967          99.5%           62,345        33,407         1,862          1.20%
       2016        7,719,829       6,828,816       88.5%       853,639        7,682,455          99.5%           42,063        23,671         1,365          0.87%
       2017        7,633,290       6,776,856       88.8%       795,164        7,572,020          99.2%           51,584        43,665        11,728          1.40%
       2018        9,545,232       8,631,502       90.4%       839,208        9,470,710          99.2%                -        53,873        13,529          0.71%
       2019        9,737,757       8,873,258       91.1%       821,601        9,694,859          99.6%                -        20,987        15,355          0.37%
       2020        9,943,231       9,114,832       91.7%       749,195        9,864,027          99.2%                -        35,111        31,560          0.67%
       2021        9,987,802       9,121,784       91.3%       637,083        9,758,867          97.7%                -        19,026        41,200          0.60%
143




      SOURCE: City of Muskegon Treasurer' Office




                                                                                     174
                                                                                                                                                City of Muskegon

                                                                               TOTAL INCOME TAX COLLECTED AND NUMBER OF RETURNS FILED - GRAPHICAL

                                                                                                                                          Last Ten Fiscal Years

                                                                                                                                     Income Tax 2012 ‐ 2022
                         $12,000,000



                         $10,000,000
      INCOME TAX $




                          $8,000,000



                          $6,000,000



                          $4,000,000



                          $2,000,000



                                  $‐
                                                   2012 ‐ 2013               2013 ‐ 2014                 2014 ‐ 2015             2015 ‐ 2016            2016 ‐ 2017          2017 ‐ 2018       2018 ‐ 2019      2019‐20       2020‐21      2021‐22
                      Resident                     $2,692,211                $2,892,906                  $3,070,581              $2,925,036             $3,284,777           $3,278,759        $3,457,902      $3,655,458    $3,531,695   $3,771,609
                      Non‐Resident                 3,290,480                   3,535,773                 3,752,932               3,575,045              4,014,691            4,007,372         4,226,325       4,467,781     4,316,516     4,609,744
                      Other                        1,523,781                   1,499,133                 1,451,153               1,651,821              1,311,374            1,472,517         1,007,446       1,014,475     1,408,615     1,621,270
                      Total Income Tax             $7,506,472                $7,927,812                  $8,274,666              $8,151,902             $8,610,842           $8,758,648        $8,691,673      $9,137,714    $9,256,826   $10,002,623
144




                                                                                                                                                 FISCAL YEAR


                                                                                                                        NUMBER OF RETURNS 2012 ‐ 2022                                                                                                      
                      20,000


                      18,000
                                                                    1,750 
                                          1,750                                               1,750                    1,750                   1,750 
                                                                                                                                                                 1,650               1,650 
                      16,000
                                                                                                                                                                                                      1,650 
                      14,000                                                                                                                                                                                                     1,650 
                                                                                                                                                                                                                    1,650 

                      12,000
      RETURNS




                                                                   11,009                    10,631                    10,713                10,578 
                                         10,997                                                                                                                  10,278              10,256 
                      10,000                                                                                                                                                                                                               Other
                                                                                                                                                                                                      9,426 
                                                                                                                                                                                                                                 8,524 
                                                                                                                                                                                                                    8,301                  Non‐Resident
                       8,000
                                                                                                                                                                                                                                           Resident

                       6,000


                       4,000

                                          5,110                     5,463                     5,458                    5,337                   5,464             5,352               5,493 
                                                                                                                                                                                                      4,852         4,302        4,732 
                       2,000


                          ‐
                                       2012 ‐ 2013               2013 ‐ 2014               2014 ‐ 2015            2015 ‐ 2016            2016 ‐ 2017           2017‐ 2018           2018‐19          2019‐20       2020‐21     2021‐22

                                                                                                                                                 FISCAL YEAR




                                                                                                                                                                            175
                                                                            City of Muskegon

                                       TOTAL INCOME TAX COLLECTED AND NUMBER OF RETURNS FILED - DATA

                                                                         Last Ten Fiscal Years

                                                                         Income Tax 2012 ‐ 2022
      Year               2012 ‐ 2013     2013 ‐ 2014   2014 ‐ 2015   2015 ‐ 2016   2016 ‐ 2017   2017 ‐ 2018   2018 ‐ 2019     2019‐20       2020‐21       2021‐22
      Resident           $ 2,692,211    $ 2,892,906    $ 3,070,581   $ 2,925,036   $ 3,284,777   $ 3,278,759   $ 3,457,902   $ 3,655,458   $ 3,531,695   $ 3,771,609
      Non‐Resident         3,290,480      3,535,773      3,752,932     3,575,045     4,014,691     4,007,372     4,226,325     4,467,781     4,316,516      4,609,744
      Other                1,523,781      1,499,133      1,451,153     1,651,821     1,311,374     1,472,517     1,007,446     1,014,475     1,408,615      1,621,270
      Total Income Tax   $ 7,506,472    $ 7,927,812    $ 8,274,666   $ 8,151,902   $ 8,610,842   $ 8,758,648   $ 8,691,673   $ 9,137,714   $ 9,256,826   $ 10,002,623

                                                                     Number of Returns 2012‐2022
      Year               2012 ‐ 2013     2013 ‐ 2014   2014 ‐ 2015   2015 ‐ 2016   2016 ‐ 2017    2017‐ 2018     2018‐19       2019‐20       2020‐21       2021‐22
      Resident                5,110           5,463         5,458         5,337         5,464         5,352         5,493         4,852         4,302          4,732
      Non‐Resident           10,997          11,009        10,631        10,713        10,578        10,278        10,256         9,426         8,301          8,524
      Other                   1,750           1,750         1,750         1,750         1,750         1,650         1,650         1,650         1,650          1,650
145




      Total Returns          17,857          18,222        17,839        17,800        17,792        17,280        17,399        15,928        14,253         14,906




                                                                                      176
                                                                            City of Muskegon

                                                            RATIO OF OUTSTANDING DEBT BY TYPE

                                                                          Last Ten Fiscal Years




                                          Governmental Activities                                  Business-Type Activities
                        General
                       Obligation     Installment                       Total
                      Limited Tax      Purchase                      Governmental           Revenue                       Total Business-       Total Primary     Per
      Year              Bonds         Agreements       State Loans     Activities            Bonds       State Loans      Type Activities       Government       Capita



      2013           $    7,350,000   $           -   $    130,042   $    7,480,042     $    4,205,000   $    9,685,000   $ 13,890,000      $       21,370,042   $     577
      2014                6,954,535               -        112,550        7,067,085          3,630,728        9,030,000     12,660,728              19,727,813         533
      2015                6,555,436               -         94,708        6,650,144          2,949,368        8,360,000     11,309,368              17,959,512         483
      2016                6,243,903               -         76,509        6,320,412          2,246,962        7,675,000      9,921,962              16,242,374         436
      2017                5,940,903               -         57,946        5,998,849          1,523,661        6,980,000      8,503,661              14,502,510         378
146




      2018                5,633,903               -         39,012        5,672,915            774,614        6,270,000      7,044,614              12,717,529         331
      2019                5,322,903               -         19,699        5,342,602                  -        5,545,000      5,545,000              10,887,602         284
      2020               24,059,753       2,123,804              -       26,183,557                  -        6,607,956      6,607,956              32,791,513         854
      2021               30,496,677               -              -       30,496,677                  -        9,056,453      9,056,453              39,553,130       1,051
      2022               29,229,777       1,173,411              -       30,403,188                  -       14,374,715     14,374,715              44,777,903       1,192

      NOTE: None of the debt issued by the City is payable through the levy of property tax millages.


      SOURCE: The information in these schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the relevant year.




                                                                                177
                                                     City of Muskegon

                                         DIRECT AND OVERLAPPING DEBT

                                                       June 30, 2022




                                                                  Total Debt                           Debt Supported by City
Name of Governmental Unit                                        Outstanding        Self Supporting     General Revenues

Direct Debt
 City of Muskegon:
   Revenue Bonds                                             $         14,374,715 $     14,374,715 $                       -
   Capital Improvement Bonds                                           29,229,777                -                29,229,777
   Installment Purchase Agreements                                      1,173,411                -                 1,173,411
 Component Unit Debt:
   Local Development Finance Authority                                  1,096,547         1,096,547                         -

Total City Direct Debt                                       $         45,874,450 $     15,471,262 $              30,403,188




                                                                                     City Share as
                                                                    Gross           Percent of Gross            Net
Overlapping Debt
 Muskegon School District                                    $        81,265,000            95.82% $              77,868,123
 Orchard View School District                                         35,479,418            16.93%                 6,006,665
 Reeth's Puffer School District                                       60,921,723             0.95%                   578,756
 Hackley Public Library                                                1,775,000            95.82%                 1,700,805
 Muskegon County                                                     100,828,458            12.98%                13,087,534
 Muskegon Community College                                           28,360,000            12.98%                 3,681,128

Total Overlapping Debt                                       $       308,629,599                                 102,923,012

Total City Direct and Overlapping Debt                                                                 $         133,326,200


NOTE: None of the debt issued by the City is payable through the levy of property tax millages

The percentage of overlapping debt is estimated using taxable property values. Applicable percentages were estimated by
determining the portion of the City's taxable value that is within each overlapping government unit's boundaries. Details
regarding the City's outstanding debt can be found in the notes to the financial statements.




SOURCE: Municipal Advisory Council of Michigan and City of Muskegon Finance Department. The information in these
schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the relevant year.




                                                          147
                                                          178
                                                                                                                        City of Muskegon

                                                                                                          LEGAL DEBT MARGIN INFORMATION

                                                                                                                       Last Ten Fiscal Years



                                                           2013               2014                2015                     2016                2017                 2018              2019               2020              2021              2022


      Debt Limit                                       $   68,555,700   $     61,706,477    $      61,510,980      $       60,962,090   $      61,333,841     $     64,124,907    $   101,083,635    $   108,732,428   $   128,830,259   $   144,430,377

      Total net debt applicable to limit                   13,655,042         12,847,550           11,969,708              11,313,794          10,290,785            9,240,855          8,510,021         27,943,934        31,848,925        31,499,735

      Legal debt margin                                $   54,900,658   $     48,858,927    $      49,541,272      $       49,648,296   $      51,043,056     $     54,884,052    $    92,573,614    $    80,788,494   $    96,981,334   $   112,930,642




      Total net debt applicable to the limit as               19.92%               20.82%                 19.46%               18.56%              16.78%               14.41%               8.42%           25.70%            24.72%            21.81%
      a percentage of debt limit

                                                                        Legal Debt Margin Calculation for 2022:

                                                                        Assessed Valuation:                                                                   $   1,444,303,769
                                                                        Legal Debt Limit (10% )                                                                     144,430,377

                                                                        Total Indebtedness:                                             $      45,874,450
                                                                        Debt not Subject to Limitation:
                                                                           Paid by Special Assessment                                                    -
                                                                           Revenue Bonds                                                       (14,374,715)
                                                                        Debt Subject to Limitation                                                                  31,499,735
148




                                                                        Legal Debt Margin                                                                     $    112,930,642




      SOURCE: The information in these schedules
      (unless otherwise noted) is derived from the
      comprehensive annual financial reports for the
      relevant year.




                                                                                                                            179
                                                          City of Muskegon
                                                REVENUE BOND COVERAGE

                                                        Last Ten Fiscal Years



                                                      Water Supply System

                                     Direct        Net Revenue
Fiscal             Gross            Operating      Available For                      Debt Service Requirements
Year             Revenue (a)     Expenses (b)         Debt Service        Principal         Interest             Total            Coverage


2013         $      5,907,784   $     3,729,276   $       2,178,508   $     1,250,000   $       384,694    $     1,634,694                 1.33
2014                6,109,144         3,511,477           2,597,667         1,295,000           352,634          1,647,634                 1.58
2015                6,388,474         3,774,508           2,613,966         1,330,000           320,857          1,650,857                 1.58
2016                7,498,376         4,460,076           3,038,300         1,370,000           283,360          1,653,360                 1.84
2017                7,449,646         4,997,912           2,451,734         1,405,000           246,434          1,651,434                 1.48
2018                7,507,323         4,949,807           2,557,516         1,450,000           203,106          1,653,106                 1.55
2019                8,472,413         5,672,522           2,799,891         1,495,000           158,260          1,653,260                 1.69
2020                8,417,771         6,374,033           2,043,738           745,000           109,916            854,916                 2.39
2021                8,762,308         6,481,996           2,280,312           760,000           107,860            867,860                 2.63
2022                9,026,192         7,255,731           1,770,461           994,750           146,568          1,141,318                 1.55

                                                  Sewage Disposal System

                                     Direct        Net Revenue
Fiscal             Gross            Operating      Available For                      Debt Service Requirements
Year             Revenue (a)     Expenses (b)         Debt Service        Principal         Interest             Total            Coverage


2013                                                          No Direct System Indebtedness
2014                                                          No Direct System Indebtedness
2015                                                          No Direct System Indebtedness
2016                                                          No Direct System Indebtedness
2017                                                          No Direct System Indebtedness
2018                                                          No Direct System Indebtedness
2019                                                          No Direct System Indebtedness
2020         $      8,399,047   $     9,307,397   $        (908,350) $              - $                -   $             -    $            -
2021                9,298,294         7,481,042           1,817,252                 -              3,151             3,151            576.72
2022               10,303,063         7,502,182           2,800,881          272,000              84,439           356,439              7.86



For years in which "revenue bond coverage" is less than 1.00, the shortfall was made up either by use of net position or by transfer in.

(a) "Gross Revenue" equals total operating revenues plus interest income.
(b) "Direct Operating Expenses" equal total operating expenses net of depreciation expense.




SOURCE: The information in these schedules (unless otherwise noted) is derived from the comprehensive annual financial reports for the
relevant year.




                                                                149
                                                                180
                                                                          City of Muskegon

                                                          DEMOGRAPHIC AND ECONOMIC STATISTICS

                                                                        Last Ten Fiscal Years



      Fiscal                          Personal         Per Capita       Median          Public School               Building Permits
      Year         Population          Income           Income           Age             Enrollment             Number              Value            Unemployment


      2013           37,046      $      747,644,037   $     20,182       34.1                4,367                826           $      24,613,938        12.0%
      2014           37,213             769,789,707         20,686       34.1                4,808               1,108                 54,065,115         9.6%
      2015           37,213             789,034,450         21,203       35.8                4,387               1,102                 46,541,966        10.3%
      2016           37,213             808,760,311         21,733       35.8                4,206               1,112                 58,924,856         8.3%
      2017           38,349             854,285,543         22,277       35.8                3,985               1,075                 78,271,395         4.8%
      2018           38,401             876,830,025         22,834       35.4                3,732               1,202                171,523,877         4.1%
      2019           38,401             898,750,775         23,404       35.4                3,589               1,295                 94,667,004         4.2%
      2020           38,401             921,219,545         23,989       36.3                3,625               1,233                 92,319,998        17.7%
      2021           37,633             925,365,524         24,589       35.8                3,472               1,266                 53,810,437         5.0%
      2022           37,552             946,458,144         25,204       34.9                3,478               1,051                 65,634,790        10.3%
150




      SOURCE: US Census Bureau, Muskegon Area Intermediate School Distrct (MAISD), City of Muskegon Inspections Department, Michigan Department of Technology,
      Management, & Budget




                                                                                 181
                                                                         City of Muskegon

                                                                   PRINCIPAL EMPLOYERS

                                                                  Current Year and Ten Years Ago



                                                                                    2022                                    2013
                                                                                             Percentage                                Percentage
                                                                                               of total                                  of total
                                                                                                City                                      City
      Employer                                                    Employees         Rank     employment       Employees     Rank       employment


      Mercy General Health Partners                                       4,003          1          32.72%          3,657          1         24.7%
      ADAC Automotive                                                     1,168          2           9.55%            750          5          5.1%
      County of Muskegon                                                    990          3           8.09%          1,028          2          7.0%
      G.E. Aviation                                                         624          4           5.10%            644          6          4.4%
      Port City Group Companies                                             421          5           3.44%            419          7          2.8%
      KL Outdoors                                                           375          6           3.07%
      Muskegon Public School District                                       360          7           2.94%           941           3          6.4%
151




      Muskegon Area Intermediate School District                            355          8           2.90%
      Knoll Inc                                                             270          9           2.21%           403        8             2.7%
      Muskegon Community College                                            214         10           1.75%           211       10             1.4%
      State of Michigan                                                                                              772        4             5.2%
      Baker College
      SAF Holland USA                                                                                                330           9          2.2%




      SOURCE: City of Muskegon; Muskegon Area First; Michigan Department of Energy, Labor & Economic Growth




                                                                                  182
                                                                           City of Muskegon

                                                    BUDGETED FULL-TIME CITY GOVERNMENT POSITIONS BY DEPARTMENT

                                                                         Last Ten Fiscal Years




      Department                                        2013      2014      2015          2016     2017     2018     2019     2020     2021     2022
      Administration                                    0.40      0.40       -             -        -        -        -        -        -        -
      Affirmative Action                                1.10      1.10      1.30          1.30     1.46     0.40     1.00     1.00     1.00     1.00
      Cemetaries                                        1.25      1.25      1.25          1.25     1.25     1.25     1.25     2.25     2.25     2.25
      City Clerk & Elections                            3.00      3.00      3.00          3.00     3.54     3.80     3.80     4.80     5.80     5.80
      City Commission                                   0.25      0.25      0.25          0.25     0.25     0.25     0.25     0.25     0.25     0.25
      City Hall Maintenance                             0.55      0.55      0.55          0.55     0.55     0.55     0.55     1.05     1.00     1.00
      City Manager's Office                             2.25      2.25      2.05          2.05     1.75     2.75     2.75     2.75     3.30     3.30
      City Treasurer's Office                           5.00      4.50      5.50          5.50     5.50     5.50     5.50     5.50     5.30     5.30
      Environmental Services                            5.00      5.00      2.00          2.00     2.00     2.00      -                          -
      Farmers Market                                    0.05      0.05      0.05          0.05      -       0.20     1.20     1.20     0.70     0.70
      Finance Administration                            2.00      2.00      3.00          3.00     3.00     3.60     3.00     3.45     3.70     3.70
      Fire                                             28.00     28.83     32.00         35.00    35.00    35.00    26.00    29.00    29.50    29.50
      Fire Safety Inspections                           6.00      0.83       -             -        -        -        -                          -
      Income Tax Administration                         5.00      4.50      3.50          3.50     3.50     3.50     3.50     3.50     3.70     3.70
      Information Systems                               3.00      3.00      3.00          3.00     3.00     3.50     3.50     3.50     3.50     3.50
      Parks                                             6.05      6.00      6.00          6.00     7.05     7.05    10.05    10.05    10.05    10.05
      Planning, Zoning & Economic Development           3.00      3.00      3.40          3.40     3.45     3.45     5.45     6.00     7.00     7.00
      Police                                           88.00     87.34     88.00         88.00    88.00    88.00    89.00    89.00    91.00    91.00
152




      Sanitation                                        0.20      0.20      0.20          0.20     0.20     0.20     0.20     0.20     0.20     0.20
      Senior Transit                                    0.05      0.05       -             -        -        -        -        -
      MVH-Major Streets                                10.70     10.70     10.70         10.70    10.70    10.70    12.20    12.20    13.20    13.20
      MVH-Local Streets                                 6.70      6.70      6.70          6.70     6.70     6.70     7.20     7.20     7.20     7.20
      Community Development                             4.00      4.00      4.00          4.00     4.00     3.55     3.55     4.30     5.30     5.30
      Home Program                                       -         -         -             -        -        -        -        -                 -
      Lead Program                                       -         -         -             -        -        -        -        -                 -
      Sewer Maintenance                                 9.75      9.80      9.80          9.80     9.80     9.80     9.80    10.80    10.95    10.95
      Water Filtration                                 10.00     10.00     10.00         10.00    10.00    10.00    10.00    11.00    12.15    12.15
      Water Maintenance                                11.75     11.75     11.75         11.75    11.75    11.75    11.75    12.75    14.90    14.90
      Hartshorn Marina Fund                             0.30      0.30      0.30          0.30     0.30     0.30     0.30     0.30     0.30     0.30
      Mercy Health Arena                                 -         -         -             -        -        -        -       3.00     6.00     6.00
      Public Service Building                           8.45      8.45      8.50          8.50     8.50     8.50     8.50     8.75     8.75     8.75
      Engineering                                       4.95      4.95      4.95          4.95     4.95     4.95     5.95     5.20     4.25     4.25
      Equipment                                         6.25      6.25      6.25          6.25     6.25     6.25     6.25     6.25     6.25     6.25
                                                      233.00    227.00    228.00        231.00   232.45   233.50   232.50   245.25   257.50   257.50




      SOURCE: City of Muskegon Finance Department




                                                                              183
                                                                                      City of Muskegon

                                                                     OPERATING INDICATORS BY FUNCTION/PROGRAM

                                                                                   Last Ten Fiscal Years



      Function/Program                               2013         2014         2015           2016          2017         2018          2019          2020         2021          2022



      Administrative Services
      Elections
      Number of registered voters                      26,098       26,025       24,014           24,005      24,612       26,136        25,182        28,127       27,889        28,004
      Number of votes cast:
       Last general election                           13,487        3,029        7,763            2,547      13,179       15,271        11,407         3,105       15,156        15,519
       Last city election                               2,131        3,029        7,763            2,547      13,179        2,254         1,938         3,105        2,968         4,459
      Percentage of registered voters voting:
       Last general election                                52%          12%          32%            11%           54%          58%           45%           11%          54%           55%
       Last city election                                    8%          12%          32%            11%           54%           9%            8%           11%          12%           16%



      Financial Services
      Property Tax Bills                               15,291       15,211       14,528           14,611      14,243       14,229        14,180        15,090       15,117        15,103
      Income Tax Returns                               17,857       18,222       17,839           17,800      17,792       17,280        17,399        15,928       14,253        14,906
      Paper Check Issued to Vendors                     1,677        1,404        1,527            1,608       1,675        1,782         1,863         1,946        1,676         1,853
      Electronic Payments to Vendors                    1,251        1,579        1,471            1,849       1,998        2,104         2,307         2,494        2,465         3,654
153




      Public Safety
      Fire Protection
       Number of firefighter and officer positions         41           38           35               35          35           23            29            26           29            25
       Number of emergency calls                        4,563        4,354        4,881            4,938       4,895        4,948         5,106         5,147        4,203         6,018
      Police Protection
       Number of sworn officer positions                   79           76           76               76          75           79            80            80           89              80
       Part I (Major) Crimes                            2,647        2,240        2,107            1,989       2,816        2,357         1,728         1,621        1,442             808



      Public Works
       Refuse Collected (Tons per Year)                 9,958       10,217       10,512           10,994      11,009       10,801        10,753        11,534       12,289        10,326
       Recyclables Collected (Tons per Year)                -            -            -                -           -            -             -           160          224           341



      Water & Sewer
      Number of consumers                               13,144       13,086       13,223         13,307        13,248       13,104        13,343        13,422       12,660        12,821
      Average daily water consumption (GPD)          7,651,000    7,666,000    8,293,570     11,027,945    10,947,233    9,559,304    10,867,590    10,674,712    7,570,000    10,789,900
      Water main breaks repaired                            11           30           15             16            12           15            11            17           13            15
      Sewer flows (Millions Gallons per Year)            1,777        1,833        2,013          1,794         1,815        1,832         2,048         2,138        1,596         1,462
      Sewer Service Calls                                  508          532          501            521           462          451           443           475          541           426




      SOURCE: City of Muskegon Departments




                                                                                            184
                                                                                     City of Muskegon

                                                             CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

                                                                                    Last Ten Fiscal Years




      Function/Program                       2013         2014         2015               2016              2017         2018         2019         2020         2021         2022


      Public Safety
      Fire Protection
        Number of stations                           3            3            3                  3                 3            3            3            3            3            3
      Police Protection
        Number of stations                           1            1            1                  1                 1            1            1            1            1            1

      Highways, Streets and Bridges
      Miles of Streets                         196.95       196.95       196.95              196.95           196.95       196.95       197.19       187.34       187.34       187.28
      Number of streetlights                    2,838        2,838        2,838               2,900            2,984        2,967        2,930        2,995        2,995        2,995

      Culture and Recreation
      Number of parks (acres)                       701          701          701                701               701          701          701          701          701          701
      Lake Michigan beaches (acres)                 119          119          119                119               119          119          119          119          119          119
      Hockey/Entertainment Arena                      1            1            1                  1                 1            1            1            1            2            2

      Sewer
154




      Sanitary sewers (miles)                  177.04       177.04       177.04              177.04           177.04       177.04       177.04       177.04       176.69       166.63
      Storm sewers (miles)                     184.35       184.25       184.35              184.35           184.35       184.35       184.35       184.35       147.58       148.38

      Water
      Water mains (miles)                      195.95       195.95       195.95              195.95           195.95       195.95       195.27       195.27       213.92       214.70




      SOURCE: City of Muskegon Departments




                                                                                         185
SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS




                         155
                         186
               INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
              FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
                 BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
                  IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS



City Commission
City of Muskegon
Muskegon, Michigan


We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of City of Muskegon as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise City of Muskegon’s basic financial statements, and have issued
our report thereon dated December 21, 2022.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Muskegon’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of City of Muskegon’s internal control. Accordingly, we do not
express an opinion on the effectiveness of City of Muskegon’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies
may exist that were not identified.




                               Grand Haven | Grand Rapids | Hart | Muskegon

                                                www.brickleydelong.com
                                                         156
                                                        187
BRICKLEY DELONG


City Commission
City of Muskegon
Page 2


Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Muskegon’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of Muskegon’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on City of Muskegon’s
response to the findings identified in our audit and described in the accompanying Schedule of Findings and
Questioned Costs. City of Muskegon’s response was not subjected to the other auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.




Muskegon, Michigan
December 21, 2022




                                                        157
                                                        188
     INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
    PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON
    SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM
                                  GUIDANCE



City Commission
City of Muskegon
Muskegon, Michigan

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program
We have audited City of Muskegon’s compliance with the types of compliance requirements identified as subject
to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City of
Muskegon’s major federal programs for the year ended June 30, 2022. City of Muskegon’s major federal
programs are identified in the Summary of Auditor’s Results section of the accompanying Schedule of Findings
and Questioned Costs.

In our opinion, City of Muskegon complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended June
30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America (GAAS); the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those
standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section to our report.

We are required to be independent of City of Muskegon and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of City of Muskegon’s compliance with the
compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grant agreements applicable to City of Muskegon’s
federal programs.


                              Grand Haven | Grand Rapids | Hart | Muskegon

                                              www.brickleydelong.com
                                                       158
                                                      189
BRICKLEY DELONG


City Commission
City of Muskegon
Page 2


Report on Compliance for Each Major Federal Program—Continued

Auditor’s Responsibility for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of
Muskegon’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government
Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The
risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Noncompliance with the compliance requirements referred to above is considered material, if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable
user of the report on compliance about City of Muskegon’s compliance with the requirements of each major
federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance,
we
       exercise professional judgment and maintain professional skepticism throughout the audit.

       identity and assess the risks of material noncompliance, whether due to fraud or error, and design and
        perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
        evidence regarding City of Muskegon’s compliance with the compliance requirements referred to above
        and performing such other procedures as we considered necessary in the circumstances.

       obtain an understanding of City of Muskegon’s internal control over compliance relevant to the audit in
        order to design audit procedures that are appropriate in the circumstances and to test and report on
        internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
        expressing an opinion on the effectiveness of City of Muskegon’s internal control over compliance.
        Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.



                                                       159
                                                       190
BRICKLEY DELONG


City Commission
City of Muskegon
Page 3


Report on Internal Control Over Compliance—Continued
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitation, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.




Muskegon, Michigan
December 21, 2022




                                                        160
                                                        191
                                                                                              City of Muskegon
                                                                    SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
                                                                              For the year ended June 30, 2022


                                                                                                              Accrued                        Cash or                         Accrued
                                                                             Assistance   Program or         (Unearned)     Adjustments   Payments In-      Amount of       (Unearned)       Passed
      Federal Grantor/Pass-Through Grantor/                                   Listing       Award             Revenue           and       Kind Received       Grant          Revenue        Through to
        Program or Cluster Title/Identifying Number                           Number       Amount            July 1, 2021    Transfers     (Cash Basis)    Expenditures    June 30, 2022   Subrecipents

      U.S. Department of Housing and Urban Development
      Direct programs
         CDBG - Entitlement Grants Cluster
            Community Development Block Grants/Entitlement Grants              14.218
                B-14-MC-26-0026                                                           $      897,025     $     17,403   $        -    $       17,403   $           -   $           -   $          -
                B-16-MC-26-0026                                                                  886,662                -            -           118,732         118,732               -              -
                B-17-MC-26-0026                                                                  871,542                -            -             3,973          13,922           9,949              -
                B-18-MC-26-0026                                                                  937,658                -            -                 -          71,725          71,725              -
                B-19-MC-26-0026                                                                  973,451            8,404            -           201,592         213,897          20,709              -
                B-20-MC-26-0026                                                                  994,698           54,405            -            82,924          43,563          15,044              -
                COVID-19 - B-20-MW-26-0026                                                       794,564           27,855            -           533,440         541,595          36,010              -
                B-21-MC-26-0026                                                                  988,508                -            -           723,851         744,984          21,133        100,000
                Program Income                                                                    73,217                -            -            73,217          73,217               -              -
                   Total CDBG - Entitlement Grants Cluster                                     7,417,325          108,067            -         1,755,132       1,821,635         174,570        100,000
161




        Home Investment Partnerships Program                                   14.239
          M-17-MC-26-0215                                                                        249,537                -            -            10,902          10,902               -              -
          M-18-MC-26-0215                                                                        327,681                -            -            49,152          49,152               -              -
          M-19-MC-26-0215                                                                        334,818                -            -           235,951         245,770           9,819              -
          M-20-MC-26-0215                                                                        343,362            1,781            -           214,690         218,493           5,584              -
          M-21-MC-26-0215                                                                        336,456                -            -            13,728          56,038          42,310              -
          Program Income                                                                          53,040                -            -            53,040          53,040               -              -
                Total Home Investment Partnerships Program                                     1,644,894            1,781            -           577,463         633,395          57,713              -

        Healthy Homes Production Program                                       14.913
          MIHHP0083-22                                                                         1,500,000                -            -                 -           2,015           2,015              -

                    Total U.S. Department of Housing and Urban Development                    10,562,219          109,848            -         2,332,595       2,457,045         234,298        100,000




                                                                                                           192
                                                                                                  City of Muskegon
                                                               SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
                                                                              For the year ended June 30, 2022


                                                                                                                   Accrued                             Cash or                         Accrued
                                                                                 Assistance   Program or          (Unearned)     Adjustments        Payments In-      Amount of       (Unearned)          Passed
      Federal Grantor/Pass-Through Grantor/                                       Listing       Award              Revenue           and            Kind Received       Grant          Revenue           Through to
        Program or Cluster Title/Identifying Number                               Number       Amount             July 1, 2021    Transfers          (Cash Basis)    Expenditures    June 30, 2022      Subrecipents
      U.S. Department of Justice
      Direct programs
         Bulletproof Vest Partnership Program                                      16.607
            2020 Grant                                                                        $        6,615      $          -   $             -    $            -   $       6,615   $        6,615     $           -

         Edward Byrne Memorial Justice Assistance Grant Program                    16.738
           2020-DJ-BX-0470                                                                            32,996            17,866                 -            27,751           9,885                 -           9,885
           15PBJA-21-GG-01586-JAGX                                                                    40,467                 -                 -            21,906          21,906                 -               -
                                                                                                      73,463            17,866                 -            49,657          31,791                 -           9,885
         Criminal and Juvenile Justice and Mental Health Collaboration Program     16.745
            2019-MO-BX-0006                                                                          100,000             4,837                 -            63,909          59,072                 -                -

                  Total direct programs                                                              180,078            22,703                 -           113,566          97,478            6,615            9,885

      Passed through Michigan Department of Health and Human Services
         Violence Against Women Formula Grants                                     16.588
162




            E20211656-002                                                                            177,934             9,965                 -            26,844          16,879                -                 -
            E20221719-001                                                                            282,512                 -                 -           117,173         132,952           15,779                 -
                                                                                                     460,446             9,965                 -           144,017         149,831           15,779                 -
      Passed through Battle Creek Community Foundation
         Project Safe Neighborhoods                                                16.609
            2018 Project Safe Neighborhoods Grant                                                      6,420                 -                 -             6,420           6,420                 -                -
            2019 Project Safe Neighborhoods Grant                                                     21,905                 -                 -            21,905          21,905                 -                -
                                                                                                      28,325                 -                 -            28,325          28,325                 -                -

      Passed through Ottawa County
         Edward Byrne Memorial Justice Assistance Grant Program                    16.738
           2020-MU-BX-0011                                                                            16,284                 -                 -            16,284          16,284                 -                -

                     Total U.S. Department of Justice                                                685,133            32,668                 -           302,192         291,918           22,394            9,885

      U.S. Department of Treasury
      Passed through Michigan Department of Treasury
         Coronavirus State and Local Fiscal Recovery Funds                         21.027
            COVID-19 - American Rescue Plan Act                                                    22,881,894                -       (11,440,947)       11,440,947       9,234,029       (13,647,865)       3,000,000

      U.S. Small Business Administration
      Direct programs
         Shuttered Venue Operators Grant Program                                   59.075
            SBAHQ21SV010622                                                                          625,498                 -                 -           625,498         625,498                 -                -




                                                                                                                193
                                                                                             City of Muskegon
                                                                 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS—Continued
                                                                                For the year ended June 30, 2022


                                                                                                           Accrued                                Cash or                          Accrued
                                                                            Assistance   Program or      (Unearned)          Adjustments        Payments In-      Amount of       (Unearned)        Passed
      Federal Grantor/Pass-Through Grantor/                                  Listing       Award          Revenue                and           Kind Received        Grant          Revenue         Through to
        Program or Cluster Title/Identifying Number                          Number       Amount         July 1, 2021         Transfers         (Cash Basis)     Expenditures    June 30, 2022    Subrecipents

      Environmental Protection Agency
      Passed through Department of Environment, Great Lakes, and Energy
         Clean Water State Revolving Fund Cluster
            Capitalization Grants for Clean Water State Revolving Funds       66.458
               5675-01                                                                   $ 11,500,000    $     497,694   $                 -   $       924,976   $     427,282   $           -    $          -
               5679-01                                                                      4,715,000          232,190                     -         3,297,075       3,114,986          50,101               -
                                                                                           16,215,000          729,884                     -         4,222,051       3,542,268          50,101               -

        Drinking Water State Revolving Fund Cluster
           Capitalization Grants for Drinking Water State Revolving Funds     66.468
              7446-01                                                                        4,225,000               -                     -          124,394          124,394               -               -

                    Total Environmental Protection Agency                                   20,440,000         729,884                     -         4,346,445       3,666,662          50,101               -

      U.S. Department of Health and Human Services
      Passed through Michigan Department of Health and Human Services
163




         Children's Health Insurance Program                                  93.767
            E20211485-002                                                                     943,785           56,290                     -          125,354           69,064               -               -
            E20221736-001                                                                     880,100                -                     -          477,837          552,561          74,724               -

                    Total Department of Health and Human Services                            1,823,885          56,290                     -          603,191          621,625          74,724               -

                    TOTAL FEDERAL ASSISTANCE                                             $ 57,018,629    $   928,690     $      (11,440,947)   $   19,650,868    $ 16,896,777    $ (13,266,348)   $ 3,109,885




  The accompanying notes are an integral part of this statement.

                                                                                                         194
                                                                                 City of Muskegon
                                                  NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
                                                                 For the year ended June 30, 2022


      1.   The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the City under programs of the federal
           government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
           Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule
           presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position or change in net position of the City.

      2.   Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. Expenditures are recognized following the cost
           principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the
           schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The City is not using the ten-percent
           de minimis indirect cost rate as allowed under the Uniform Guidance.

      3.   Unearned revenue for the American Rescue Plan Act at June 30, 2021 was inadvertently ommitted from the prior year Schedule of Expenditures of Federal Awards.

      4.   The following is a reconciliation of federal revenues as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances of the City of Muskegon's
           financial statements for the year ended June 30, 2022 and federal expenditures per the Schedule of Expenditures of Federal Awards.
164




              Federal revenues per City of Muskegon financial statements
                General Fund                                                                                                                        $      291,918
                Other governmental funds                                                                                                                12,811,940
                                                                                                                                                        13,103,858
              Plus drawdowns on federal loans                                                                                                            3,666,662
              Plus program income                                                                                                                          126,257
              Federal expenditures per the Schedule of Expenditures of Federal Awards                                                               $ 16,896,777




                                                                                           195
                                              City of Muskegon
                          SCHEDULE OF FINDINGS AND QUESTIONED COSTS
                                   For the year ended June 30, 2022


SECTION I—SUMMARY OF AUDITOR’S RESULTS
A. Financial Statements
   1.    Type of report the auditor issued on whether the financial statements audited were prepared in accordance
         with GAAP: Unmodified
   2.    Internal control over financial reporting:
            Material weakness(es) identified?                                           yes    X no
            Significant deficiency(ies) identified?                                     yes    X none reported
   3.    Noncompliance material to financial statements noted?                           yes    X no
B. Federal Awards
   1.    Internal control over major federal programs:
            Material weakness(es) identified?                                           yes    X no
            Significant deficiency(ies) identified?                                     yes    X    none reported
   2.   Type of auditor’s report issued on compliance for major federal programs: Unmodified
   3.    Any audit findings disclosed that are required to be reported in
         accordance with 2 CFR 200.516(a)?                                            yes       X no
   4.    Identification of major programs:
             Assistance Listing Number(s)              Name of Federal Program/Cluster
                                                       U.S. Department of Treasury
                        21.027                          ● Coronavirus State and Local Recovery Funds
                                                       U.S. Small Business Administration
                        59.075                          ● Shuttered Venue Operators Grant
                                                       Environmental Protection Agency
                        66.458                          ● Capitalization Grants for Clean Water State
                                                          Revolving Funds
   5.   Dollar threshold used to distinguish between type A and type B programs: $750,000
   6.   Auditee qualified as low-risk auditee?                                        yes       X no

SECTION II – FINANCIAL STATEMENT FINDINGS

   NONE

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

   NONE




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                  166
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CLIENT DOCUMENTS




      167
      198
Affirmative Action
(231)724-6703
FAX (231)722-1214

Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129

Cemetery/Forestry
(231)724-6783
FAX (231)724-4188

City Manager
(231)724-6724
FAX (231)722-1214

Clerk
(231)724-6705
FAX (231)724-4178                    SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Comm. & Neigh.
Services
(231)724-6717         December 21, 2022
FAX (231)726-2501

Computer Info.
Technology
(231)724-4126         U.S. Department of Housing and Urban Development
FAX (231)722-4301     Washington D.C.
Engineering
(231)724-6707
FAX (231)727-6904     City of Muskegon respectfully advises you that there were no audit findings reported in our single
Finance               audit report, dated December 9, 2021, for the year ended June 30, 2021.
(231)724-6713
FAX (231)726-2325
                      Sincerely,
Fire Department
(231)724-6795
FAX (231)724-6985

Human Resources
Co. (Civil Service)
(231)724-6442
FAX (231)724-6840     Ken Grant
Income Tax            Finance Director
(231)724-6770
FAX (231)724-6768

Mayor’s Office
(231)724-6701
FAX (231)722-1214

Planning/Zoning
(231)724-6702
FAX (231)724-6790

Police Department
(231)724-6750
FAX (231)722-5140

Public Works
(231)724-4100
FAX (231)722-4188

SafeBuilt
(Inspections)
(231)724-6715
FAX (231)728-4371

Treasurer
(231)724-6720
FAX (231)724-6768

Water Billing
(231)724-6718
FAX (231)724-6768

Water Filtration             City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
(231)724-4106                                       http://www.shorelinecity.com
FAX (231)755-5290                                                 168
                                                                  199
Affirmative Action
(231)724-6703
FAX (231)722-1214

Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129

Cemetery/Forestry
(231)724-6783
FAX (231)724-4188

City Manager
(231)724-6724
FAX (231)722-1214

Clerk
(231)724-6705
FAX (231)724-4178                                 CORRECTIVE ACTION PLAN
Comm. & Neigh.
Services
(231)724-6717         December 21, 2022
FAX (231)726-2501

Computer Info.
Technology            U.S. Department of Housing and Urban Development
(231)724-4126
FAX (231)722-4301     Washington D.C.
Engineering
(231)724-6707
FAX (231)727-6904     City of Muskegon respectfully submits the following Corrective Action Plan for the year ended June
Finance               30, 2022.
(231)724-6713
FAX (231)726-2325
                      Name and address of independent public accounting firm:
Fire Department
(231)724-6795                        Brickley DeLong, P.C.
FAX (231)724-6985                    P.O. Box 999
Human Resources                      Muskegon, MI 49443
Co. (Civil Service)
(231)724-6442         Audit period: June 30, 2022
FAX (231)724-6840

Income Tax            The findings from the Schedule of Findings and Questioned Costs for the year ended June 30, 2022
(231)724-6770         provided no findings in either Section II or Section III. Accordingly, there are no matters requiring
FAX (231)724-6768
                      corrective action as shown below.
Mayor’s Office
(231)724-6701         SECTION II – FINANCIAL STATEMENT FINDINGS
FAX (231)722-1214

Planning/Zoning       There were no findings in relation to the financial statement audit.
(231)724-6702
FAX (231)724-6790
                      SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Police Department
(231)724-6750
FAX (231)722-5140     There were no findings in relation to the major federal award programs.
Public Works
(231)724-4100         If the U.S. Department of Housing and Urban Development has questions regarding this plan, please
FAX (231)722-4188     call Ken Grant at (231) 724-6932.
SafeBuilt
(Inspections)         Sincerely,
(231)724-6715
FAX (231)728-4371

Treasurer
(231)724-6720
FAX (231)724-6768
                      Ken Grant
Water Billing
(231)724-6718         Finance Director
FAX (231)724-6768

Water Filtration             City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
(231)724-4106                                       http://www.shorelinecity.com
FAX (231)755-5290                                                  169
                                                                   200
                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023                             Title: MIHAF Application

Submitted By: Sarah Wilson                                            Department: Treasurer

Brief Summary: The Homeowner Assistance Fund was established as part of the American
Rescue Plan Act of 2021 (ARP). The State of Michigan received more than 242 million dollars, to
be used to mitigate hardships associated with the coronavirus pandemic, including utility
payments. The State created the Michigan Homeowner Assistance Fund (MIHAF) to provide
these funds to eligible homeowners. The City Treasurer is requesting authorization to sign the
attached documents to partner with MIHAF so that any eligible city residents can receive utility
payment assistance.

Detailed Summary & Background:
The Michigan Homeowner Assistance Fund (MIHAF) is a statewide program that uses federal
resources to provide financial assistance to homeowners who have fallen behind on
homeownership-related expenses because of the COVID-19 Pandemic. It provides funds to
eligible entities for the purpose of preventing homeowner mortgage delinquencies, defaults,
foreclosures, loss of utilities or home energy services, and displacements of homeowners through
qualified expenses related to mortgages and housing. Eligibility criteria and eligible expenses are
detailed on the attached documents.


Participation in the program does not guarantee our residents will receive funding from this
program; however, it does make them eligible to apply for funding. If we choose not to partner with
MIHAF, our residents cannot apply for these funds to assist in paying their utility bills.

Goal/Focus Area/Action Item Addressed: Goal 2: Housing; Goal 4: Financial Infrastructure

Amount Requested: N/A                                 Amount Budgeted: N/A

Fund(s) or Account(s): N/A                            Fund(s) or Account(s): N/A

Recommended Motion: To authorize the City Treasurer to sign all necessary documents to partner
with the Michigan Homeowner Assistance Fund so that the City will be eligible to receive
assistance payments made on behalf of eligible utility customers.



Approvals: Get approval from division head at a minimum prior         Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head          Information Technology               Yes
Other Division Heads             Communication                        No
                                                201
Legal Review

For City Clerk Use Only:
Commission Action:




                           202
203
204
205
206
207
208
209
210
211
212
213
214
                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023                              Title: Leads Online

Submitted By: Director Timothy E. Kozal                                Department: Public Safety

Brief Summary: Electronic reporting for Pawn Shops, secondhand dealers and precious Metaugem
dealers

Detailed Summary & Background: The purpose of Leads Online is to improve the system of
reporting to law enforcement officials all items collected by pawn brokers, secondhand dealers and
precious metal/gem dealers for the purpose of aiding law enforcement in locating and retrieving
stolen property. Leads Online has nationwide search capabilities, and email notification when
suspects are active nationwide for National pawn, scrap, jewelry, firearms, consignment, cell
phone re-sale access and online sales such as Ebay and Offerup. Leads Online has the ability to
track suspect sales activity across the country, access to over 20,000 businesses reporting and
free software, training, and support for local businesses. Currently the city has no means to collect
or view reported data.

Goal/Focus Area/Action Item Addressed:
Refer to the 2022-2027 Long Term Goals document.

Amount Requested: $15,662 3-year contract             Amount Budgeted:
                                                      Contact Finance if your item does not fit into
                                                      the current budget.

Fund(s) or Account(s):101-301-861                     Fund(s) or Account(s):

Recommended Motion: To approve the Police Department to acquire this 3-year contract with
Leads Online program



Approvals: Get approval from division head at a minimum prior          Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head          Information Technology                Yes
Other Division Heads             Communication                         No
Legal Review

For City Clerk Use Only:
Commission Action:

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                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023             Title: Towing Agreement

Submitted By: Director Timothy Kozal                  Department: Public Safety

Brief Summary: 2023 Towing Contract, Ramos Towing, 2-year contact



Detailed Summary: Bids were submitted to the Clerks office on December 13, 2022 with several
bidders. Towing to facility $80.00, Storage fee per day $30.00.



Amount Requested: 0                                  Amount Budgeted: not applicable

Fund(s) or Account(s):                               Fund(s) or Account(s):

Recommended Motion: To award the 2023 Towing Contract to Ramos Towing and authorize the
Mayor and Clerk to sign.

Approvals: Get approval from division head at a minimum prior to sending to the Clerk.
Immediate Division Head         Information Technology
Other Division Heads            Communication
Legal Review

For City Clerk Use Only:
Commission Action:




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                                  TOWING AGREEMENT

        This Towing Agreement is made on November 22, 2023: between
  the City of Muskegon, Michigan Municipal Corporation, with offices at
  933 Terrace Street, Muskegon, Michigan 49440 ("City"), and Ramos
  Towing, with offices at 710 Alberta St., Muskegon, Ml. ("Contractor").
                                      Recitals

       A.     Contractor operates a vehicle towing service,
  impound service and facility licensed by the State of Michigan;
  and,

        B.    City desires to retain Contractor to operate a vehicle
  towing service, impoundment service and facility pursuant to the
  terms and conditions of this Agreement.

         Therefore, the parties mutually agree as follows:

          1.    Retention of Contractor. City retains Contractor as an
  independent contractor to operate a towing and wrecker service and
  impoundment facility for the storage of certain motor vehicles for the
  City pursuant to the terms and conditions of this Agreement. City agrees
  to exclusively utilize Contractor's towing and wrecker service and
  impoundment facility, providing the owner/operator of said motor vehicle
  does not expressly select some other alternative and reasonable
  provider of said services. Notwithstanding the foregoing, City may call
  another towing company if Contractor does not respond in a timely
  manner or does not provide adequate equipment necessary to provide
  the services as provided by this Agreement. The City reserves the right
  to hire specialized equipment outside the scope of this Agreement when
  needed, i.e., mobile cranes, or other heavy
  equipment which might be needed for special situations. The parties
  specifically agree that all fees, charges and expenses incurred by
  Contractor in performance of this Agreement are not City's obligation,
  and all collection attempts will be directed to the owner/operator of the
  subject motor vehicle.

         2.     Term. The term of this Agreement will commence on
  January 1, 2023 and will continue until December 31, 2025, unless
  earlier terminated by City pursuant to Section 10. City will have the
  unilateral option to extend this Agreement for two additional one-year
  terms under the same terms and conditions of this Agreement if, in
  City's sole discretion, the extension is in the City's best interest. This




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                                             245
 extension will be exercised by the City providing written notice to
 Contractor at least 60 days prior to the termination date.

        3.     Duties of Contractor. Contractor will operate a vehicle
 towing service, impound service and facility seven days a week, 24-
 hours a day, in such a manner that Contractor can be reached by
 telephone at all times by Muskegon Central Dispatch, the Muskegon
 Police Department, and the Muskegon Department of Public Works.
 Contractor will tow and/or store all motor vehicles, including tractors
 and trailers, directed to be towed and/or stored by the City's agents
 and employees.

           a.     Equipment. At all times during the term of this Agreement,
     Contractor will own and keep in good operating condition the following
     equipment:

                    i.    FCC licensed radio dispatched wreckers;

                  ii.     Set of dollies;

                  iii.    Equipment for changing tires, air tanks for inflating tires,
                          tools for lock-outs;

                  iv.     Booster battery or cables for starting cars or trucks;

                  v.      Fire extinguishers, flares;

                  vi.     Extra chains, pry bar, broom and shovel, bucket, oil dry;

                  vii.    Two standard wreckers fully equipped as specified herein and
                          one large heavy-duty wrecker capable of handling trucks,
                          trailers, semi-trailers, and other large vehicles, up to a gross
                          weight of 50 tons;

                  viii.   Power winch on each unit set forth in (vii) above; and,

                  iv.     Gross vehicle weight per wrecker unit rating of not less than
                          8,000 pounds, and the manufacturer's specifications for rated
                          capacity of at least one ton.

                  x.      Wrecker for 50-ton vehicles (or sub contracted for this
                          equipment)

           All equipment must be maintained in good working order to safely
    perform the service required by this Agreement, and conform to the standards,
    requirements and regulations mandated by federal, state, county and City
    agencies.

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                                             246
          All towing vehicles will be equipped with communication devices
    capable of covering all of the territory within the City limits and its immediate
    bordering jurisdictions and will be subject to periodic inspections by the City
    regarding their mechanical condition.

          Contractor will keep the City informed of the number of tow trucks it
    has available for use in the performance of this Agreement, including the
    year, make, model, and capacity. This information must be supplied to the
    Director of Public Safety.

          Contractor will display the company name and phone number
    prominently on each of its vehicles used in accordance with this Agreement.
           b.     Facility. At all times during the term of this Agreement,
     Contractor's towing and impound service facility must:

                  i.     be located within Muskegon County;

                  ii.    contain a heated, secure building;

                  iii.   have a fenced area able to accommodate up to 75 vehicles;

                  iv.    comply with the laws of Michigan and the City of Muskegon;

                  v.     have prominently posted a list of towing and storage
                         charges, hours of operation as approved by the City,
                         as well as the Contractor's business telephone
                         number; and,

                  vi.    be maintained in a clean and presentable condition.

            c.    Fees. At all times during the term of this Agreement,
     Contractor will abide by the table of fees attached to Contractor's bid
     documents, which is incorporated herein and made a part hereof as
     Appendix A. Any customer service, including accidents, impounds or
     private tows, received through a request of the City, will be invoiced
     according to this fee schedule. Notwithstanding the foregoing, if a vehicle is
     impounded for evidence, contractor agrees that all storage fees will cease
     and tow fees in certain exigent circumstances relating to victims may be
     waived at the sole discretion of the Director of Public Safety.

            During the term of this Agreement, Contractor may not increase its
     fees except upon prior approval granted by the Muskegon City Commission,
     following review and recommendation by the Muskegon Police Department
     and/or Department of Public Works.



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                                           247
          Contractor will charge only for equipment actually needed and
    requested by City at the scene.

           City reserves the right to cancel a request for services of the
    Contractor at any time, including up to the time of hook up, without either
    the City or owner or operator incurring any charges. If the owner of the
    vehicle arrives on scene before the vehicle is towed, and the vehicle can
    be safely moved by the owner in the opinion of the police officer in charge
    at the scene, no charges will be incurred and the vehicle will be released
    to the owner.

           Contractor will not charge storage fees for any day Contractor is closed
    to the general public. Contractor will not charge storage fees for the first 24
    hours of storage.

              d.   Personnel Qualifications. Contractor will maintain adequate
     staffing in order to insure proper and timely response to any and all police
     requirements for impounding vehicles. Contractor will provide the City with a
     list of the names and addresses of all current operators/drivers and will notify
     the City of all changes in operators/drivers. Every operator/driver will:

                  i.      be competent by reason of demonstrated experience or
           training, in the sole judgment of the City, to safely operate the type of
           tow truck used by the impound service;

                 ii.    possess the ability to rig, move, pick up and transport
           vehicles without increasing the original damage, insofar as possible;

                 iii.   be free from the influence of alcoholic beverages,
           narcotics, or dangerous drugs while on duty;

                  iv.   be familiar with the ordinances, rules and regulations
           pertaining to tow trucks; and,

                  v.   be licensed as provided by applicable federal, state and
           local Jaws and ordinances.

           e.    Expenses. Contractor will be solely responsible for all
    expenses incurred by Contractor, its agents and employees, in connection
    with the performance of this Agreement.

          f.     Auctions. Contractor will be responsible for the holding of public
    auctions for abandoned vehicles, furnishing all documentation attendant to
    any sale at said auction, paying for the auctioneer, and paying for the public
    notice advertised in the local daily newspaper. Contractor agrees to hold said


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                                           248
    auctions under the supervision of the Muskegon Police Department. Auctions will
    be conducted based on the number of vehicles held, but not less than once per
    calendar quarter. If no bids are received at the auction, Contractor will become
    the owner of the vehicle or group of vehicles and will be responsible for disposal.
    Public auctions will comply with State law.
    Contractor shall be responsible for $55 city fee for each impounded vehicle
    sold at auction.

           g.     Storage of Vehicles. All vehicles impounded will be stored in a
    storage lot or building which is fenced with all gates securely locked and a
    responsible person in charge of the business 24 hours a day that may be called
    to respond to the lot by someone from the City. Vehicles stored in the building or
    storage yard will be parked so as to allow one foot of space between vehicles.
    Storage charges will not be assessed for the first 24 hours of storage.

           h.      Release of Vehicles. The owner of an impounded vehicle or
    authorized representative of the owner will be required to have a signed
    approval by the City's Police Department prior to the vehicle being released.
    Whenever impounded vehicles are claimed by the owner, Contractor will provide
    the owner with an itemized statement of all charges relating to impounding the
    vehicle, including a written justification for fees over and above the standard towing fee.
    Contractor will make every reasonable effort to verify that the individual
    claiming a stored vehicle is the actual owner or authorized representative of the
    owner before the vehicle is released.

           i.      Hours of Operation. Contractor will be available and capable of
    providing towing services 24 hours a day on each and every day (365 days a year)
    during the term of this Agreement. Contractor will be open to the general public from
    8:00 am through 5:00 pm, Monday through Friday, on each and every week during the
    term of this Agreement to release motor vehicles to their rightful owners. No storage
    fees may be charged by Contractor for any day that the business is closed to the
    general public.

            j.      Services. Contractor will have a tow truck at the scene in a timely
    manner to tow vehicles as requested by the City. Furthermore, Contractor will
    clean up accident debris from the street upon response to accident scenes. If
    clean-up is requested and towing is not required there will be no clean-up charge to the
    City. Clean-up will be deemed completed when inspected and approved by the City
    official in charge at the scene. If Contractor does not arrive at the requested location
    within 25 minutes, the police officer or City employee may have the vehicle towed to
    Contractor's yard at Contractor's expense, and Contractor will accept the vehicle for
    storage.

           At the towing scene, or upon reasonable dispatch thereafter, Contractor must
    provide the owner or operator of the motor vehicle with a written list itemizing
    towing fees, storage rates and other expenses. Additionally, Contractor must advise in
    writing the owner/operator of the right to remove any and all unattached
    personal property from the motor vehicle at the impoundment yard.

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                                                249
          k.     Driving of Vehicles. Neither Contractor nor any of its employees
    and/or agents will at any time drive or remove from the premises any motor
    vehicles placed with Contractor for storage purposes, except with the written
    permission of the owner of the motor vehicle or by operation of law.

          l.    Recommendation of Repair or Collision Shop. Under no
    circumstances will Contractor recommend a repair or collision shop to the
    vehicle owner/operator.

         4.     Recordkeeping and Documentation. Contractor will maintain
 all required records and complete all necessary forms for the state of
 Michigan, Muskegon Police Department, and the Muskegon Department of
 Public Works. Contractor will maintain all records relating to the disposition of
 impounded vehicles for a period not less than four years, and the City will have
 the right to inspect, copy and audit these records during any business hours.

          a.       Invoices. A written or computerized record or invoice will
    be kept by Contractor and include the following information for each
    vehicle:

                      i.     Vehicle identification number;

                      ii.    Gross vehicle weight rating;

                     iii.    Year, make, and model of vehicle;

                     iv.     Name of owner of vehicle;

                     v.      Details of all services rendered regarding vehicle;

                     vi.     Location from which the vehicle was towed or impounded;

                     vii.    Mileage of the vehicle; and,

                     viii.   Any other information the City may require.

         These records will be maintained and kept throughout the term of this
         Agreement (plus one year following the termination of this Agreement)
         and will be made available to the City for inspection upon request.

                 b.    Monthly Audit. A monthly audit will be conducted by
         Contractor of all vehicles impounded, including the reason the vehicle was
         impounded. The audit will be submitted to the City's Police Department by
         the fifteenth day of the following month. Any invoice for special equipment
         or added services which exceed the standard towing fees will be




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                                            250
         specifically itemized and contain written justification for such additional
         fees.

       5.     Independent Contractor. Contractor is an independent contractor
and not an employee of the City. Neither the Contractor, nor the Contractor's
employees or subcontractors, will be entitled to any or additional insurance,
health, retirement or similar benefits which are or may become available to City
employees, as a result of this Agreement. In addition, current or future City
employees or agents will not be construed or considered to be employees or
agents of Contractor.

       6.     Taxes. Contractor will be solely responsible for the payment and
withholding of any and all taxes, levies and assessments under any federal, state
or local law and will provide for the payment of taxes on or for income,
unemployment, old age, social security, workman's compensation, or any other
taxes with respect to the Contractor, the Contractor's employees or
subcontractors in connection with the work performed pursuant to this
Agreement.

         7.    Insurance.

              a.      Liability Insurance. During the term of this Agreement,
     Contractor must maintain comprehensive general liability insurance and vehicle
     liability insurance, including coverage of all operations as a towing service and
     name the City as co-insured in at least the following amounts:

                     i.Comprehensive general liability insurance in an amount not
              less than $1,000,000 for each occurrence;

                    ii.     Vehicle liability insurance in an amount no less than
              $1,000,000 for each occurrence;

                     iii.     An umbrella policy for liability insurance covering any
              and all of such risks in an amount not less than $1,000,000; and,

                      iii.   A garage keeper's insurance policy in the amount of not
              less than $250,000.

         Contractor will provide City with copies of these insurance policies.

                 b.     Worker's Compensation Insurance. During the term of this
          Agreement Contractor must maintain in full force and effect, workers
          compensation insurance with limits established under state law, and provide
          City with a copy of the appropriate certificate evidencing same.



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                                             251
         8.   Warranty. Contractor warrants and represents that it is familiar
 with the towing and impoundment requirements of the City and is capable of
 rendering all services as required in this Agreement. Contractor acknowledges
 that it has made a thorough independent investigation as to its undertakings
 under this Agreement and as to the actual conditions and requirements of the
 work and the amount of work to be done.

         Contractor acknowledges that the City has not made and does not make
 any warranties or representations with respect to the City's obligations set forth
 in this Agreement except as provided in this Agreement.

        9.     City Inspections. Contractor will allow members of the City of
 Muskegon Police Department or other authorized City representatives to inspect
 the Contractor's lot or building, stored vehicles, office or other buildings and
 records relative to this Agreement whenever it is deemed necessary by the City.
 City reserves the right to conduct an audit at least twice a year of all bills and
 records relative to this Agreement. Contractor agrees to provide access to the
 records for inspection by the City and its auditors.

        10. Cancellation of Agreement. This Agreement may be canceled by
 City upon two days written notice, delivered by hand or sent by ordinary mail
 addressed to the Contractor at Contractor's address provided in this
 Agreement. This Agreement may be cancelled, if, in the sole-judgment of the
 City's Director of Public Safety, the Contractor has not performed according to
 the terms of this Contract.

        This Agreement may be canceled by the Contractor upon 60 days written
 notice to City's Director of Public Safety.

        11.    Indemnification. Except as otherwise provided in this Section, City
 and its elected officials, appointed officials, employees and agents (collectively
 hereinafter referred to as the "Indemnified Persons"), will not be liable to
 Contractor for any reasons. Contractor will indemnify and hold City and the
 Indemnified Persons harmless from any loss, expenses, or liability of any nature
 (including attorneys' fees) due to any and all suits, demands, actions, legal or
 administrative proceedings or claims arising or resulting from or in connection
 with:

                a.     Any act or failure to act including negligence or
         misrepresentation by the City or any Indemnified Person, whether
         attributable to the City or Contractor in connection with or resulting from
         this Agreement, the operations of Contractor, or any other activity;
         provided however, that Contractor will not be obligated to indemnify the
         City or any Indemnified Person under this Section including costs and
         counsel fees if a court of competent jurisdiction finds that the liability in
         question was caused by the intentional misconduct or gross negligence of

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                                            252
         the City and any Indemnified Person unless the court determines that,
         despite the adjudication of liability but in view of all circumstances of the
         case, the City or any Indemnified Person is fairly and reasonably entitled
         to indemnification which the court considers proper; and/or

               b.   The negligent performance by Contractor or its agents,
         employees, or officers of any work purportedly authorized to be
         performed under this Agreement; and/or

               c.    Any loss or damage connected to or resulting from any work
         performed or authorized to be performed under this Agreement; and/or

                d.     Any injury or damage to any person or property arising
         out of this Agreement or the Contractor's performance of this
         Agreement.

         If any action or proceeding is brought against the City or any Indemnified
 Person, connected to or resulting from any work performed or authorized to be
 performed under this Agreement, that action or proceeding will be defended by
 counsel to the City or the Contractor as City will determine. If the defense is by
 counsel to the City, the City will pay the costs of that defense including its
 counsel fees. If the City determines that the Contractor will defend the City or
 an Indemnified Person, the Contractor will immediately assume the defense at
 its sole costs.

         The Contractor and the City agree to act cooperatively in the defense of
 any action brought against the City and the Contractor to the greatest extent
 possible. The City agrees that it will not settle any action or proceeding against
 it without prior written consent of the Contractor, unless the City has provided
 written notice to the Contractor of its decision to waive any right to
 indemnification for the proposed settlement (including any costs, expenses or
 counsel fee associated therewith).

       Contractor will also indemnify City for all costs and expenses, including
 reasonable counsel fees, incurred in enforcing any obligation of the
 Contractor under this Agreement.

         12.    Non-Discrimination. Contractor covenants not to discriminate on
  the basis of race, color, religion, or national origin against any employee or
  applicant for employment to be employed in the performance of this Agreement
  with respect to his/her hire, compensation, tenure, terms, conditions or privileges
  of employment, and Contractor further covenants not to so discriminate against
  any other person using or attempting to use the facility and services described in
  this Agreement. Further, Contractor covenants to require similar covenants on
  the part of any sub-contractor(s) or agent(s) employed in the performance of this
  Agreement. Contractor will furnish his services on a fair, equal, and non-

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                                            253
  discriminatory basis to all users.

          13.    Prevention and Satisfaction of Liens. Contractor agrees not to
  file, assert, prosecute, and will not allow construction, mechanic's or material
  men's liens to be filed or continued against any City property for services
  performed, or for materials, machine '1/ or equipment furnished in connection
  with the work to be performed by Contractor or by Contractor's sub-contractors.
  If any such lien is nevertheless filed, Contractor agrees, at Contractor's
  expense, to take any and all steps necessary and proper for the release,
  satisfaction and discharge of said lien.

           14.  Permits and Licensing. Contractor agrees to comply with all
  federal, state and local laws, ordinances, rules regulations and requirements that
  are now, or may in the future become, applicable to Contractor's business or
  equipment for the work to be performed pursuant to this Agreement. Contractor
  will provide employees who possess a Commercial Driver's License with the
  appropriate designation with providing service under this Agreement. It is
  Contractor's responsibility to provide services in compliance with the Americans'
  Disabilities Act. Contract will also meet the requirements of the Michigan
  Commercial Driver's License Standards, Federal Drug Free Workplace Act, the
  Elliott-Larson Act, the Michigan Civil Rights Act, and any other applicable
  employee related legislation.

         15.  State of Michigan Abandoned Vehicle Fee. Contractor agrees
 not to charge a customer the State of Michigan abandoned vehicle fee until the
 customer's vehicle is entered into the LEIN system as an abandoned vehicle. If
 Contractor fails to comply with this Section, then Contractor agrees to fully
 reimburse the customer, and pay City two times the amount of the abandoned
 vehicle fee (currently $40-so, Contractor would pay City $80 per occurrence).
 Contractor shall abide by state law and pay the required abandon vehicle fees to
 the Michigan Secretary of State.

          16.   Default. It is expressly agreed between the parties that if the
 impoundment or storage facilities described in this Agreement are vacated,
 abandoned or not maintained or operated in accordance with this Agreement, or
 if Contractor attempts to sell, convey or assign this Agreement, or if Contractor
 fails lo provide notices in a timely and proper manner in accordance with Public
 Act 1981, No. 104 as amended, or if Contractor defaults in any of the terms of
 this Agreement, or if Contractor fails to comply with any statutes, ordinances,
 rules, orders, regulations, or requirements of the federal, state and/or City
 government or of any and all of their departments and bureaus applicable to the
 premises and operations described in this Agreement, or if the Contractor files a
 petition in bankruptcy or be adjudicated as bankrupt, or make an assignment for
 the benefit of creditors, or take advantage of any insolvency act, City may elect
 to terminate this Agreement immediately and, if City elects to terminate this


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                                          254
 Agreement because of the violation of this paragraph, upon such termination
 Contractor will compensate City for the loss suffered by reason of the
 termination and the default hereunder.

       17.    Right to Control. Contractor agrees to perform and supervise all
 work under this Agreement efficiently and in accordance with the highest
 standards of the industry. Contractor will be solely responsible for the means,
 methods, techniques, sequences and procedures for completing the work.

          18.    Miscellaneous.

                  a.     Sale or Assignment. This Agreement may not be
          assigned or sub- contracted without the City's prior written consent.
          Contractor's owner(s) agree not to sell or assign their interest, including
          their stock, membership interest, or assets in Contractor without City's
          prior written consent.

              b.      Validity. The invalidity of any portion of this Agreement will
       not affect the remainder of the Agreement, unless the City so elects.
       Unless the City elects otherwise, if any terms of this Agreement shall be
       held invalid, illegal, or unenforceable in whole or in part, the validity of the
       other terms of this Agreement shall not be affected and shall remain in full
       force and effect.

             c.      Governing Law. This Agreement will be governed by the
       laws of the State of Michigan.

              d.     Entire Agreement. This Agreement represents the entire
       and integrated Agreement between the City and Contractor and
       supersedes all prior negotiations, representations or agreements, either
       written or oral.

            e.     Amendments. All amendments to this Agreement must
       be made in writing and signed by City and by Contractor.

       The parties have signed this Agreement the date first above set forth.

City of Muskegon, a Michigan Municipal Corporation

By:
                Mayor

Contractor- Ramos Towing


 By:
                Owner

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                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: January 10, 2023                             Title: Arena – Janitorial Contract

Submitted By: Jake Laime                                              Department: Arena Director

Brief Summary: Seeking approval of the proposed amended Janitorial contract with Goodwill
Industries to provide service to Trinity Health Arena.

Detailed Summary:
Staff is seeking the approval of the amendment to the current City Janitorial Contract with Goodwill
Industries – West Michigan to include Trinity Health Arena. Goodwill Industries – West Michigan
was recently approved for a one year extension to their current contract with the City of Muskegon
to include DPW and City Hall.

Goal/Focus Area/Action Item Addressed:

Amount Requested: $1,080/event (60 events             Amount Budgeted:
max)

Fund(s) or Account(s): 254                            Fund(s) or Account(s):

Recommended Motion: Authorize staff to add Trinity Health Arena to the amended City janitorial
contract (Goodwill Industries – West Michigan) which was approved in 2020.

Approvals: Get approval from division head at a minimum prior         Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head         Information Technology                Yes
Other Division Heads            Communication
Legal Review                                                          No

For City Clerk Use Only:
Commission Action:




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                       Agenda Item Review Form
                        Muskegon City Commission
Commission Meeting Date: January 10th, 2023          Title: Boys & Girls Club Agreement

Submitted By: Matt Schwemin                          Department: Public Works

Brief Summary:
Staff is seeking Commission approval to extend the staffing agreement with Boys and Girls Club
through calendar year 2023.

Detailed Summary & Background:
Staff is proposing to extend the staffing agreement with Boys and Girls Club through calendar year
2023. Boys and Girls Club provided staffing to assist with our seasonal staffing needs during the
2022 calendar year, which was viewed positively by both parties. The original agreement was
approved at the April 12th, 2022 Commission Meeting and included a clause that allowed for
extension if approved by both parties. Staff is seeking commission approval for the extension.

Goal/Focus Area/Action Item Addressed:
Blight Cleanup

Amount Requested: $40,000                            Amount Budgeted: $40,000

Fund(s) or Account(s): 101-770-801                   Fund(s) or Account(s): 101-770-801

Recommended Motion: Approve the extension of the staffing contract with Boys and Girls Club
and authorize the Mayor and Clerk to sign.

Approvals:                                                          Guest(s) Invited / Presenting
Immediate Division Head         Information Technology
Other Division Heads            Communication                       Yes

Legal Review                                                        No


For City Clerk Use Only:
Commission Action:




                                               264
Affirmative Action
(231)724-6703
FAX (231)722-1214

Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129

Cemetery/Forestry
(231)724-6783
FAX (231)724-4188

City Manager          January 10th, 2022
(231)724-6724
FAX (231)722-1214
                      Boys and Girls Club
Clerk                 900 W. Western Ave.
(231)724-6705
FAX (231)724-4178     Muskegon, MI 49441
Comm. & Neigh.
Services              RE:       Extension of Partnership Agreement
(231)724-6717                   Boys and Girls Club of the Muskegon Lakeshore.
FAX (231)726-2501

Computer Info.        Dear Mr. Randy Vander Weit:
Technology
(231)724-4126
FAX (231)722-4301     The City of Muskegon hereby requests that the Agreement be extended for the period of January 1,
                      2023 – December 31, 2023. The proposed budget for the extension period will be as listed in the
Engineering
(231)724-6707         previous contract with the discretion of the city. We have agreed this be taken into consideration
FAX (231)727-6904     with this extension.
Finance
(231)724-6713         This modification is requested for the following reason(s):
FAX (231)726-2325

Fire Department               The City of Muskegon utilizes a contract to assist the City of Muskegon Parks Department.
(231)724-6795
FAX (231)724-6985              The extension proposes to request approximately 15 seasonal employees & 2 field
                               coordinators. Services include contract laborers for seasonal projects on an as-needed basis.
Human Resources
Co. (Civil Service)
                              The City intends to solicit bids for a new contract in the fall of 2023.
(231)724-6442                 The City of Muskegon is an AA/EEO/ADA Employer.
FAX (231)724-6840

Income Tax                Thank you for your consideration of this request.
(231)724-6770
FAX (231)724-6768
                      The City of Muskegon
Mayor’s Office
(231)724-6701
FAX (231)722-1214

Planning/Zoning
(231)724-6702                   By: Ken Johnson, Mayor                                     Date
FAX (231)724-6790

Police Department
(231)724-6750
FAX (231)722-5140

Public Works                    And: Ann Meisch, Clerk                                     Date
(231)724-4100
FAX (231)722-4188

SafeBuilt             Contractor
(Inspections)
(231)724-6715
FAX (231)728-4371

Treasurer
(231)724-6720         By: Randy Vander Weit, Dir. Of Extended Programs                     Date
FAX (231)724-6768

Water Billing
(231)724-6718
FAX (231)724-6768

Water Filtration
(231)724-4106
                                    Department of Public Works & Utilities, 1350 E. Keating Avenue, Muskegon, MI 49442
FAX (231)755-5290                                               http://www.shorelinecity.com
                                                                    265
                            CITY OF MUSKEGON
                 CONTRACT FOR TEMPORARY STAFFING SERVICES

        This Agreement is effective upon execution between the City of Muskegon, a Michigan
 municipal corporation, of 933 Terrace Street, Muskegon, MI 49443 (“City”) and the Boys and
 Girls Club of the Muskegon Lakeshore, of 900 W Western Avenue, Muskegon, MI 49441
 (“Contractor”) with reference to the following facts:

                                             RECITALS

A.     Contractor requested to partner with the Public Works Department to maintain parks,
       landscaping and other facilities throughout the city.

B.     Contractor agreed to provide approximately eight staff in two teams of approximately four
       each, with one supervisor per team, to support the Public Works Department in maintaining
       the parks, landscaping and other facilities.

 NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which is
 hereby acknowledged, the parties agree as follows:

1.     Services. Contractor shall provide the following services:

       a.      In the area known as the Business Improvement District (BID), including nearby
               parks and city properties, maintaining flower beds and other landscaping by
               removing weeds and other undesirable plants and items, turf maintenance using
               push mowers and other hand-operated equipment, picking up loose debris and
               refuse (trash), emptying refuse containers, and performing other cleaning and
               maintenance tasks as designated by Public Works Department Staff.

       b.      Picking up loose debris and refuse (trash), emptying refuse containers, cleaning
               restrooms, and performing other cleaning and maintenance tasks as designated by
               Public Works Department Staff in parks and other City-owned properties. This
               effort is primarily envisioned at Beukema Playfield, Reese Playfield, Sheldon Park,
               and McCrea Playfield, however other parks or properties may be assigned by Public
               Works Department Staff in consultation with Contractor.

       c.      During the months of June, July and August, the contractor will provide up to 35
               hours of labor per week per employee. During April, May, September and October,
               the contractor will provide a reduced workforce to support critical efforts. The
               employees are students and will not have as much availability during the school
               year.

2.     Equipment. The City shall supply safety equipment mandated for employees while on
       assignment with the City, together with other equipment described herein.


BGCML Temporary Staffing Service Agreement                                            Page 1 of 6
4 /15/22 – 10/31/22
                                               266
       a.      The City shall supply hand-operated equipment that directly supports the tasks
               described in this agreement and other duties as assigned by Public Works
               Department Staff in consultation with the Contractor; examples of this equipment
               includes hand-operated lawn mowers, string trimmers, leaf blowers, hand tools
               such as rakes and spades, and cleaning equipment such as brushes and bottles. The
               City will provide materials to support the efforts, such as gasoline, string line, paper
               towel(s), cleaning solutions and refuse bags.

       b.      If available for use, the City may supply a self-propelled utility cart to assist with
               refuse disposal, carrying equipment and staff relocation, based from a facility
               within or near the BID, for Contractor’s use. All operators of such a cart must be
               licensed within the State of Michigan to operate a motor vehicle and carry a current
               driver’s license. The City will provide materials to support the cart, such as
               gasoline.

       c.      If available for use, the City may supply a motor vehicle and/or utility trailer to
               assist with refuse disposal, carrying equipment and staff relocation, based from the
               City’s Public Works Facility at 1350 E. Keating Avenue, Muskegon, MI 49442, for
               Contractor’s use. All operators of such a vehicle and/or utility trailer must be
               licensed within the State of Michigan to operate a motor vehicle and carry a current
               driver’s license. The City will provide materials to support the vehicle, such as
               gasoline.

       d.      The City will perform any required maintenance on City-owned equipment. The
               City reserves the right, in its sole discretion, to withdraw the use of equipment if
               deemed in the best interest of the City. Any damage caused to rented or borrowed
               equipment is the responsibility of the Contractor.

       e.      In the event the City is unable to provide equipment, and upon written approval
               from City, the Contractor may rent equipment that is deemed necessary for the
               Services. The City will provide materials to support rented equipment, such as
               gasoline and other consumables not included in rental costs. Maintenance of rented
               equipment shall be the responsibility of the Contractor. The City will reimburse the
               cost of the equipment rental at actual cost, including maintenance costs.

3.     Expenses. Contractor shall be responsible to pay for all expenses incurred by Contractor
       related to the performance of its duties under this Agreement, except as described in
       Section 2.e of this agreement.

4.     Contract Billing. City agrees to pay Contractor, in full consideration for the complete
       performance of Contractor’s obligations under this Agreement:

       a.      Youth will be paid at a rate of $12/hour.

       b.      Supervisors will be paid at a rate of $15/hour.


BGCML Temporary Staffing Service Agreement                                                Page 2 of 6
4 /15/22 – 10/31/22
                                                267
       c.      For all labor, Contractor will bill a markup of 37.5% to cover taxes, insurance and
               administrative costs. Expenses, when reimbursable, will be billed at actual cost.

5.     Payment. Contractor shall submit detailed invoices on a monthly basis for the prior
       month’s services. Payments according to this agreement are invoiced and paid on a
       monthly basis. Requests for payment shall be submitted on a detailed invoice to the City
       monthly for the previous month. The City agrees that payment shall be due on net 30-day
       terms.

6.     Specific Reservations. City reserves the right to discontinue its use of temporary
       employees from contractor as it determines appropriate.

7.     Terms and Termination. This Agreement shall be effective on the date of execution, and
       shall remain in full force and at the same terms through October 31, 2022, with an option
       to renew for an additional term, if mutually agreed upon by both parties as memorialized
       in a written and signed agreement.

8.     Commencement and Damages.

       a.      Commencement. Contractor shall commence performance under this Agreement
               upon its execution.

               The City shall notify Contractor of any violation of the Agreement. It shall be the
               duty of Contractor to remedy a Contractor violation.

               Failure to perform pursuant to this Agreement for a period in excess of five (5)
               consecutive scheduled, working days, or failure for a similar period, to perform in
               the manner required, and provided such failure is not a result of war, insurrection,
               riots, or acts of God, the City may, at its option and after written notice to
               Contractor, utilize any or all of Contractor’s equipment used in performance of this
               Agreement until such time the matter is resolved and the Contractor is performing
               under the terms of the Agreement.

       b.      Appeal. The City’s determination regarding damages shall be final and binding on
               both parties unless appealed, in writing, to the City Manager or his designee within
               ten (10) working days after notice. The City Manager or his designee shall grant
               Contractor an informal hearing upon such request. The decision of the City
               Manager shall be final and binding.

9.     Insurance and Indemnity.

       a.      City Insurance Requirement. The contractor, and any and all of their
               subcontractors, shall not commence work under this contract until they have
               obtained the insurance required under this paragraph, and shall keep such insurance
               in force during the entire life of this contract. All coverage shall be with insurance
               companies licensed and admitted to do business in the State of Michigan and


BGCML Temporary Staffing Service Agreement                                               Page 3 of 6
4 /15/22 – 10/31/22
                                                268
               acceptable to City of Muskegon. The requirements below should not be interpreted
               to limit the liability of the Contractor. All deductibles and SIRs are the
               responsibility of the Contractor.

       b.      Worker’s Compensation Insurance, including Employers’ Liability Coverage, in
               accordance with all applicable statutes of the State of Michigan.

       c.      Commercial General Liability Insurance on an “Occurrence Basis” with limits
               of liability not less than $1,000,000 per occurrence and aggregate. Coverage shall
               include the following extensions: (A) Contractual Liability; (B) Products and
               Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form
               General Liability Extensions or equivalent, if not already included; (E) Deletion of
               all Explosion, Collapse, and Underground (XCU) Exclusions, if applicable.

       d.      Automobile Liability, including Michigan No-Fault Coverages, with limits of
               liability not less than $1,000,000 per occurrence combined single limit for Bodily
               Injury, and Property Damage. Coverage shall include all owned vehicles, all non-
               owned vehicles, and all hired vehicles

       e.      Additional Insured: Commercial General Liability and Automobile Liability, as
               described above, shall include an endorsement stating the following shall be
               Additional Insureds: The City of Muskegon, all elected and appointed officials, all
               employees and volunteers, agents, all boards, commissions, and/or authorities and
               board members, including employees and volunteers thereof. It is understood and
               agreed by naming the City of Muskegon as additional insured, coverage afforded
               is considered to be primary and any other insurance the City of Muskegon may
               have in effect shall be considered secondary and/or excess.

       f.      Cancellation Notice: Worker’s Compensation Insurance, Commercial General
               Liability Insurance, and Automobile Liability Insurance, as described above, shall
               be endorsed to state the following: It is understood and agreed Thirty (30) days,
               Ten (10) days for non-payment of premium, Advance Written Notice of
               Cancellation, Non-Renewal, Reduction, and/or Material Change shall be sent to:
               City of Muskegon, Finance and Administrative Services Director, 933 Terrace St,
               PO Box 536, Muskegon, Michigan 49443-0536.

       g.      Proof of Insurance Coverage. Contractor shall provide the City at the time the
               contracts are returned for execution, certificates and policies endorsing the City as
               additional insured as listed below:

               i.      Two (2) copies of Certificates of Insurance for Workers’ Compensation
                       Insurance, if applicable;

               ii.     Two (2) copies of Certificate of Insurance for Commercial General Liability
                       Insurance; and



BGCML Temporary Staffing Service Agreement                                              Page 4 of 6
4 /15/22 – 10/31/22
                                               269
               iii.    If so requested, Certified Copies of all policies mentioned above will be
                       furnished.

               If any of the above coverages expire during the term of this contract, Contractor
               shall deliver renewal certificates and/or policies to City at least ten (10) days prior
               to the expiration date.

       h.      Indemnity. Contractor shall indemnify and save harmless the City against and from
               all costs, expenses, liabilities, claims, suits, action, and demands of every kind or
               nature, including reasonable attorney fees, by or on behalf of any person, party, or
               governmental authority whatsoever arising out of Contractor’s services performed
               under this agreement, Contractor’s failure to perform under this agreement,
               Contractor’s use of City equipment, or Contractor’s failure to comply with any
               laws, ordinances, requirements, orders, directions, rules, or regulations of any
               federal, state, county, or local governmental authority.

10.    Income Tax Withholding. Contractor shall withhold income taxes from each employee,
       and pay such tax in accordance with the City of Muskegon Income Tax Ordinance and all
       applicable laws associated with that ordinance. Contractor shall require the same from
       each subcontractor, consultant or vendor used in the performance of his duties and
       obligations in this Agreement. City reserves the right to withhold payments otherwise due
       to Contractor to assure compliance with this Agreement or to cure such noncompliance.

11.    General Provisions.

       a.      Notices. Any notice that either party may give or is required to give under this
               Agreement shall be in writing, specify the position, department and location
               assigned, and, if mailed, shall be effective on the day it is delivered to the other
               party at the other party’s address set forth in this Agreement or at any other address
               that the other party provides in writing. Notices given in person are effective on the
               day they are given. Notices to the City must copy the City Attorney at 601 Terrace
               St., Muskegon, MI 49440.

       b.      Governing Law. This Agreement is executed in accordance with, shall be
               governed by, and construed and interpreted in accordance with, the laws of the State
               of Michigan.

       c.      Assignment or Delegation. Neither party shall assign all nor any portion of its
               rights nor obligations contained in this Agreement without express prior written
               approval of the other party, which approval may be withheld in the other party’s
               sole discretion.

       d.      Entire Agreement. This Agreement and the documents specified in section 1 shall
               constitute the entire agreement, and shall supersede any other Agreements, written
               or oral, that may have been made or entered into, by, and between the parties with
               respect to the subject matter of this Agreement, and shall not be modified or


BGCML Temporary Staffing Service Agreement                                                Page 5 of 6
4 /15/22 – 10/31/22
                                                270
               amended except in a subsequent writing signed by the party against whom
               enforcement is sought.

        e.     Binding Effect. This Agreement shall be binding upon, and to the benefit of, and
               be enforceable by, the parties and their respective legal representatives, permitted
               successors, and assigns.

        f.     Waiver. City may waive all or any portion of damages without prejudicing its
               rights under this Agreement.

        g.     Severability. Should any one or more of the provisions of this Agreement be
               determined to be invalid, unlawful, or unenforceable in any respect, the validity,
               legality, and enforceability of the remaining provisions of this agreement shall not
               in any way be impaired or affected.

        h.     Venue. The parties agree that, for purposes of any dispute in connection with this
               Agreement, the Muskegon County District or Circuit Court shall have exclusive
               personal and subject matter jurisdiction and venue.

        i.     Survival. All representations, warranties, and covenants in this Agreement shall
               survive the signing of this Agreement.

        j.     Written Clarification. In the event that there are inconsistencies within the
               Agreement, the Contractor shall immediately notify the City, in writing, for a
               determination, interpretation, clarification and/or prioritization of the
               inconsistencies.

        City and Contractor have executed this Agreement on the date written next to their
 signatures to be effective according to the term(s) stated in this document.


Date:                               ,2022        CITY OF MUSKEGON


                                                 By:
                                                                 Ken Johnson, Mayor


                                                 And:
                                                                  Ann Meisch, Clerk

Date:                               ,2022        BOYS AND GIRLS CLUB OF
                                                 THE MUSKEGON LAKESHORE


                                                 By:


BGCML Temporary Staffing Service Agreement                                             Page 6 of 6
4 /15/22 – 10/31/22
                                               271
                       Agenda Item Review Form
                        Muskegon City Commission
Commission Meeting Date: January 10th, 2023         Title: Community EnCompass Agreement

Submitted By: Matt Schwemin                         Department: Public Works

Brief Summary:
Staff is seeking Commission approval to extend the staffing agreement with Community
EnCompass through calendar year 2023.

Detailed Summary & Background:
Staff is proposing to extend the staffing agreement with Community EnCompass through calendar
year 2023. Community EnCompass provided staffing to assist with our seasonal staffing needs
during the 2022 calendar year, which was viewed positively by both parties. The original
agreement was approved at the April 12th, 2022 Commission Meeting and included a clause that
allowed for extension if approved by both parties. Staff is seeking commission approval for the
extension.

Goal/Focus Area/Action Item Addressed:
Blight Cleanup

Amount Requested: $21,000                           Amount Budgeted: $21,000

Fund(s) or Account(s): 101-770-801                  Fund(s) or Account(s): 101-770-801

Recommended Motion: Approve the extension of the staffing contract with Community
EnCompass and authorize the Mayor and Clerk to sign.

Approvals:                                                         Guest(s) Invited / Presenting
Immediate Division Head        Information Technology
Other Division Heads           Communication                       Yes

Legal Review                                                       No


For City Clerk Use Only:
Commission Action:




                                              272
Affirmative Action
(231)724-6703
FAX (231)722-1214

Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129

Cemetery/Forestry
(231)724-6783
FAX (231)724-4188

City Manager          January 10th, 2022
(231)724-6724
FAX (231)722-1214
                      Community enCompass
Clerk                 19 Hartford Ave
(231)724-6705
FAX (231)724-4178     Muskegon, MI 49442
Comm. & Neigh.
Services              RE:       Extension of Partnership Agreement
(231)724-6717                   Community enCompass
FAX (231)726-2501

Computer Info.        Dear Mrs. Mary McDonald:
Technology
(231)724-4126
FAX (231)722-4301     The City of Muskegon hereby requests that the Agreement be extended for the period of January 1,
                      2023 – December 31, 2023. The proposed budget for the extension period will be as listed in the
Engineering
(231)724-6707         previous contract with the discretion of the city. We have agreed this be taken into consideration
FAX (231)727-6904     with this extension.
Finance
(231)724-6713         This modification is requested for the following reason(s):
FAX (231)726-2325

Fire Department               The City of Muskegon utilizes a contract to assist the City of Muskegon Parks Department.
(231)724-6795
FAX (231)724-6985              The extension proposes to request approximately 15 seasonal employees & 1 field
                               coordinator. Services include contract laborers for seasonal projects on an as-needed basis.
Human Resources
Co. (Civil Service)
                              The City intends to solicit bids for a new contract in the fall of 2023.
(231)724-6442                 The City of Muskegon is an AA/EEO/ADA Employer.
FAX (231)724-6840

Income Tax                Thank you for your consideration of this request.
(231)724-6770
FAX (231)724-6768
                      The City of Muskegon
Mayor’s Office
(231)724-6701
FAX (231)722-1214

Planning/Zoning
(231)724-6702                   By: Ken Johnson, Mayor                                    Date
FAX (231)724-6790

Police Department
(231)724-6750
FAX (231)722-5140

Public Works                    And: Ann Meisch, Clerk                                    Date
(231)724-4100
FAX (231)722-4188

SafeBuilt             Contractor
(Inspections)
(231)724-6715
FAX (231)728-4371

Treasurer
(231)724-6720                   By: Anetri’a Conyers                                      Date
FAX (231)724-6768

Water Billing
(231)724-6718
FAX (231)724-6768

Water Filtration
(231)724-4106
                                    Department of Public Works & Utilities, 1350 E. Keating Avenue, Muskegon, MI 49442
FAX (231)755-5290                                               http://www.shorelinecity.com
                                                                    273
                            CITY OF MUSKEGON
                 CONTRACT FOR TEMPORARY STAFFING SERVICES

        This Agreement is effective upon execution between the City of Muskegon, a Michigan
 municipal corporation, of 933 Terrace Street, Muskegon, MI 49440 (“City”) and Community
 enCompass, of 1105 Terrace Street, Muskegon, MI 49442 (“Contractor”), with reference to the
 following facts:
                                        RECITALS

A.     Contractor requested to partner with the Public Works Department to maintain parks,
       landscaping and other facilities throughout the city, primarily in the McLaughlin and
       Nelson neighborhoods.

B.     Contractor agrees to provide approximately ten to fifteen staff, with one supervisor per
       team of four to five students, to support the Public Works Department in maintaining the
       parks, landscaping and other facilities.

 NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which is
 hereby acknowledged, the parties agree as follows:

1.     Services. Contractor shall provide the following services:

       a.      Picking up loose debris and refuse (trash), emptying refuse containers, cleaning
               restrooms, maintaining landscaping by removing weeds and other undesirable
               plants and items, and performing other cleaning and maintenance tasks as
               designated by Public Works Department Staff in parks and other City-owned
               properties. This effort is primarily envisioned at Marsh Field, McLaughlin
               Community Park, Clara Shepherd Park, the Dog Park, and Campbell Field,
               however other parks or properties may be assigned by Public Works Department
               Staff in consultation with Contractor.

       b.      During the months of June, July and August, the contractor will provide up to 35
               hours of labor per week per employee. During September and October, the
               contractor will provide a reduced workforce to support critical efforts. The
               employees are students and will not have as much availability during the school
               year.

2.     Equipment. The City shall supply safety equipment mandated for employees while on
       assignment with the City, together with other equipment described herein.

       a.      The City shall supply hand-operated equipment that directly supports the tasks
               described in this agreement and other duties as assigned by Public Works
               Department Staff in consultation with the Contractor; examples of this equipment


Community enCompass Temporary Staffing Services Agreement                          Page 1 of 6
6 / 1 /22 – 10/31/22
                                                 274
               includes hand tools such as rakes and spades, and cleaning equipment such as
               brushes and bottles. The City will provide materials to support the efforts, such as
               paper towel(s), cleaning solutions and refuse bags.

       b.      If available for use, the City may supply a motor vehicle and/or utility trailer to
               assist with refuse disposal, carrying equipment and staff relocation, based from the
               City’s Public Works Facility at 1350 E. Keating Avenue, Muskegon, MI 49442, for
               Contractor’s use. All operators of such a vehicle and/or utility trailer must be
               licensed within the State of Michigan to operate a motor vehicle and carry a current
               driver’s license. The City will provide materials to support the vehicle, such as
               gasoline.

       c.      The City will perform any required maintenance on City-owned equipment. The
               City reserves the right, in its sole discretion, to withdraw the use of equipment if
               deemed in the best interest of the City. Any damage caused to rented or supplied
               equipment is the responsibility of the Contractor.

       d.      In the event the City is unable to provide equipment, and upon written approval
               from City, the Contractor may rent equipment that is deemed necessary for the
               Services. The City will provide materials to support rented equipment, such as
               gasoline and other consumables not included in rental costs. Maintenance of rented
               equipment shall be the responsibility of the Contractor. The City will reimburse the
               cost of the equipment rental at actual cost, including maintenance costs.

3.     Expenses. Contractor shall be responsible to pay for all expenses incurred by Contractor
       related to the performance of its duties under this Agreement, except as described in
       Section 2.d of this agreement.

4.     Contract Billing. City agrees to pay Contractor, in full consideration for the complete
       performance of Contractor’s obligations under this Agreement:

       a.      Youth will be paid at a rate of $12/hour.

       b.      Supervisors will be paid at a rate of $15/hour.

       c.      For all labor, Contractor will bill a markup of 37.5% to cover taxes, insurance and
               administrative costs. Expenses, when reimbursable, will be billed at actual cost.

5.     Payment. Contractor shall submit detailed invoices on a monthly basis for the prior
       month’s services. Payments according to this agreement are invoiced and paid on a
       monthly basis. Requests for payment shall be submitted on a detailed invoice to the City
       monthly for the previous month. The City agrees that payment shall be due on net 30-day
       terms.

6.     Specific Reservations. City reserves the right to discontinue its use of temporary
       employees from contractor as it determines appropriate.


Community enCompass Temporary Staffing Services Agreement                              Page 2 of 6
6 / 1 /22 – 10/31/22
                                                 275
7.     Terms and Termination. This Agreement shall be effective on the date of execution, and
       shall remain in full force and at the same terms through October 31, 2022, with an option
       to renew for an additional term, if mutually agreed upon by both parties as memorialized
       in a written and signed agreement.

8.     Commencement and Damages.

       a.      Commencement. Contractor shall commence performance under this Agreement
               upon its execution.

               The City shall notify Contractor of any violation of the Agreement. It shall be the
               duty of Contractor to remedy a Contractor violation.

               Failure to perform pursuant to this Agreement for a period in excess of five (5)
               consecutive scheduled, working days, or failure for a similar period, to perform in
               the manner required, and provided such failure is not a result of war, insurrection,
               riots, or acts of God, the City may, at its option and after written notice to
               Contractor, utilize any or all of Contractor’s equipment used in performance of this
               Agreement until such time the matter is resolved and the Contractor is performing
               under the terms of the Agreement.

       b.      Appeal. The City’s determination regarding damages shall be final and binding on
               both parties unless appealed, in writing, to the City Manager or his designee within
               ten (10) working days after notice. The City Manager or his designee shall grant
               Contractor an informal hearing upon such request. The decision of the City
               Manager shall be final and binding.

9.     Insurance and Indemnity.

       a.      City Insurance Requirement. The contractor, and any and all of their
               subcontractors, shall not commence work under this contract until they have
               obtained the insurance required under this paragraph, and shall keep such insurance
               in force during the entire life of this contract. All coverage shall be with insurance
               companies licensed and admitted to do business in the State of Michigan and
               acceptable to City of Muskegon. The requirements below should not be interpreted
               to limit the liability of the Contractor. All deductibles and SIRs are the
               responsibility of the Contractor.

       b.      Worker’s Compensation Insurance, including Employers’ Liability Coverage, in
               accordance with all applicable statutes of the State of Michigan.

       c.      Commercial General Liability Insurance on an “Occurrence Basis” with limits
               of liability not less than $1,000,000 per occurrence and aggregate. Coverage shall
               include the following extensions: (A) Contractual Liability; (B) Products and
               Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form


Community enCompass Temporary Staffing Services Agreement                                Page 3 of 6
6 / 1 /22 – 10/31/22
                                                 276
               General Liability Extensions or equivalent, if not already included; (E) Deletion of
               all Explosion, Collapse, and Underground (XCU) Exclusions, if applicable.

       d.      Automobile Liability, including Michigan No-Fault Coverages, with limits of
               liability not less than $1,000,000 per occurrence combined single limit for Bodily
               Injury, and Property Damage. Coverage shall include all owned vehicles, all non-
               owned vehicles, and all hired vehicles

       e.      Additional Insured: Commercial General Liability and Automobile Liability, as
               described above, shall include an endorsement stating the following shall be
               Additional Insureds: The City of Muskegon, all elected and appointed officials, all
               employees and volunteers, agents, all boards, commissions, and/or authorities and
               board members, including employees and volunteers thereof. It is understood and
               agreed by naming the City of Muskegon as additional insured, coverage afforded
               is considered to be primary and any other insurance the City of Muskegon may
               have in effect shall be considered secondary and/or excess.

       f.      Cancellation Notice: Worker’s Compensation Insurance, Commercial General
               Liability Insurance, and Automobile Liability Insurance, as described above, shall
               be endorsed to state the following: It is understood and agreed Thirty (30) days,
               Ten (10) days for non-payment of premium, Advance Written Notice of
               Cancellation, Non-Renewal, Reduction, and/or Material Change shall be sent to:
               City of Muskegon, Finance and Administrative Services Director, 933 Terrace St,
               PO Box 536, Muskegon, Michigan 49443-0536.

       g.      Proof of Insurance Coverage. Contractor shall provide the City at the time the
               contracts are returned for execution, certificates and policies endorsing the City as
               additional insured as listed below:

               i.      Two (2) copies of Certificates of Insurance for Workers’ Compensation
                       Insurance, if applicable;

               ii.     Two (2) copies of Certificate of Insurance for Commercial General Liability
                       Insurance; and

               iii.    If so requested, Certified Copies of all policies mentioned above will be
                       furnished.

               If any of the above coverages expire during the term of this contract, Contractor
               shall deliver renewal certificates and/or policies to City at least ten (10) days prior
               to the expiration date.

       h.      Indemnity. Contractor shall indemnify and save harmless the City against and from
               all costs, expenses, liabilities, claims, suits, action, and demands of every kind or
               nature, including reasonable attorney fees, by or on behalf of any person, party, or
               governmental authority whatsoever arising out of Contractor’s services performed


Community enCompass Temporary Staffing Services Agreement                                 Page 4 of 6
6 / 1 /22 – 10/31/22
                                                 277
               under this agreement, Contractor’s failure to perform under this agreement,
               Contractor’s use of City equipment, or Contractor’s failure to comply with any
               laws, ordinances, requirements, orders, directions, rules, or regulations of any
               federal, state, county, or local governmental authority.

10.    Income Tax Withholding. Contractor shall withhold income taxes from each employee,
       and pay such tax in accordance with the City of Muskegon Income Tax Ordinance and all
       applicable laws associated with that ordinance. Contractor shall require the same from
       each subcontractor, consultant or vendor used in the performance of his duties and
       obligations in this Agreement. City reserves the right to withhold payments otherwise due
       to Contractor to assure compliance with this Agreement or to cure such noncompliance.

11.    General Provisions.

       a.      Notices. Any notice that either party may give or is required to give under this
               Agreement shall be in writing, specify the position, department and location
               assigned, and, if mailed, shall be effective on the day it is delivered to the other
               party at the other party’s address set forth in this Agreement or at any other address
               that the other party provides in writing. Notices given in person are effective on the
               day they are given. Notices to the City must copy the City Attorney at 601 Terrace
               St., Muskegon, MI 49440.

       b.      Governing Law. This Agreement is executed in accordance with, shall be
               governed by, and construed and interpreted in accordance with, the laws of the State
               of Michigan.

       c.      Assignment or Delegation. Neither party shall assign all nor any portion of its
               rights nor obligations contained in this Agreement without express prior written
               approval of the other party, which approval may be withheld in the other party’s
               sole discretion.

       d.      Entire Agreement. This Agreement and the documents specified in section 1 shall
               constitute the entire agreement, and shall supersede any other Agreements, written
               or oral, that may have been made or entered into, by, and between the parties with
               respect to the subject matter of this Agreement, and shall not be modified or
               amended except in a subsequent writing signed by the party against whom
               enforcement is sought.

       e.      Binding Effect. This Agreement shall be binding upon, and to the benefit of, and
               be enforceable by, the parties and their respective legal representatives, permitted
               successors, and assigns.

       f.      Waiver. City may waive all or any portion of damages without prejudicing its
               rights under this Agreement.

       g.      Severability. Should any one or more of the provisions of this Agreement be


Community enCompass Temporary Staffing Services Agreement                                Page 5 of 6
6 / 1 /22 – 10/31/22
                                                 278
               determined to be invalid, unlawful, or unenforceable in any respect, the validity,
               legality, and enforceability of the remaining provisions of this agreement shall not
               in any way be impaired or affected.

        h.     Venue. The parties agree that, for purposes of any dispute in connection with this
               Agreement, the Muskegon County District or Circuit Court shall have exclusive
               personal and subject matter jurisdiction and venue.

        i.     Survival. All representations, warranties, and covenants in this Agreement shall
               survive the signing of this Agreement.

        j.     Written Clarification. In the event that there are inconsistencies within the
               Agreement, the Contractor shall immediately notify the City, in writing, for a
               determination, interpretation, clarification and/or prioritization of the
               inconsistencies.

        City and Contractor have executed this Agreement on the date written next to their
 signatures to be effective according to the term(s) stated in this document.


Date:                                ,2022         CITY OF MUSKEGON


                                                   By:
                                                                 Ken Johnson, Mayor


                                                   And:
                                                                  Ann Meisch, Clerk


Date:                                ,2022         COMMUNITY ENCOMPASS


                                                   By:




Community enCompass Temporary Staffing Services Agreement                              Page 6 of 6
6 / 1 /22 – 10/31/22
                                                 279
                            Agenda Item Review Form
                             Muskegon City Commission
Commission Meeting Date: January 10th, 2023            Title: CLG Grant Application

Submitted By: Dan VanderHeide                          Department: Public Works

Brief Summary: Staff is seeking Commission approvals for a grant application related to conservation work
at Hackley Park.

Detailed Summary & Background: Staff has prepared a grant application to the State Historic Preservation
Office (SHPO) through their Certified Local Government (CLG) program for funds to complete
recommended conservation work at the five (5) sculptures within Hackley Park. The grant submittal
package requires a commitment of matching funds and a resolution of support. Both are attached along
with the conservators report that highlights the proposed work.
Staff is seeking $62,440 in grant funds to cover the cost of identified conservation work at the monuments
and proposing to match the grant application with an estimated $15,000 in cash expenses for equipment
rental. If awarded for funding the work would be completed during the Fall of 2023. Grant applications are
due on February 1st, 2023. Funds would be budgeted in 23/24 budget cycle if the grant is awarded with the
proposed cash contribution coming from the General Fund line item for Public Art Maintenance.
As noted in the Conservators Report we plan to also contract for work to be completed on the McKinley
Statue and the Kearny Statue as they are of similar age and condition. These two structures are ineligible
for grant funding (McKinley is privately owned, and Kearny is outside the designated historic district
boundary). The owners of the McKinley statue are aware of this and have agreed to participate in the cost
for that piece, the cost for the work at Kearny will be a city responsibility but is ineligible to count towards
the match.

Goal/Focus Area/Action Item Addressed: Blight Cleanup

Amount Requested:                                      Amount Budgeted:
23/24 - $96,520 ($77,440 Grant Eligible)               23/24 - $96,520 ($77,440 Grant Eligible)

Fund(s) or Account(s): 101-901-801-092120              Fund(s) or Account(s): 101-901-801-092120

Recommended Motion: Approve the grant application to the CLG program and authorize the Clerk to sign
the Commitment of Matching Funds and Resolution of Support.

Approvals:                        Legal Review                          Guest(s) Invited / Presenting
Immediate Division Head           Information Technology                Yes
Other Division Heads              Communication                         No

For City Clerk Use Only:
Commission Action:
                                                       280
                             Michigan Certified Local Government Program
                             FY2023 CLG Grant Application
                             Rehabilitation Planning and Rehabilitation Projects

PROJECT INFORMATION
Certified Local Government:

Project Name:

Property Name:

Property Address:

Historic Designation:
Rehabilitation Projects: Provide the name of the resource individually listed in the National Register of Historic Places or, if the resource
is listed as a contributing resource, provide the name of the National Register-listed district.

Rehabilitation Planning Projects: Provide the name of the resource that is listed in the National Register or has been determined eligible
for listing by SHPO. If the latter, also provide the approximate date (if known) that the resource was determined eligible.

Property Owner Name:

Primary Telephone Number:                                                 E-mail:

Brief Project Summary (no more than 1-2 sentences):




GRANT FUNDING REQUEST
        CLG Grant Request:       $                Grants are reimbursable, and the applicant must demonstrate availability of
                                                  the total project cost. Briefly describe the project funding source and kind:
 CLG Match     (NOT REQUIRED):   $


Total Project Amount:            $




CLG INFORMATION
Federal ID (EIN) Number:

UEI Number:

Certified Local Government Street Address:

City:                                                                  Zip Code:

Project Coordinator Name:
This individual must have complete knowledge of the day-to-day activities with the proposed grant-funded work.

Primary Telephone Number:                                              E-mail:

Project Coordinator Street Address:

City:                                                                  Zip Code:


                                                                      1
                                                                    281
CLG LEGISLATIVE INFORMATION
This information is used to notify your elected officials if a grant is awarded.

U.S. Congressional District Number:

State Senate District Number:

State House of Representative District Number:


CLG SPONSORSHIP APPLICANT INFORMATION (IF APPLICABLE)
Complete ONLY if the CLG is applying on behalf of a non-profit organization or public entity.

Name of Non-profit or Public Entity:

Federal ID (EIN) Number:

Nonprofit or Public Entity Contact Name:

Telephone Number:                                                      E-mail:

Street Address:

City:                                                                  Zip Code:


PROJECT INFORMATION
A. PROJECT GOALS




                                                                       2
                                                                     282
B. SCOPE OF WORK




                    3
                   283
C. PROJECT NEED




D. PROJECT URGENCY




E. PROJECT IMPACT




                      4
                     284
F. PROJECT CONSIDERATIONS
Is the project related to one or more of the CLG’s goals and priorities as identified in the CLG’s last three annual reports
and/or most recent program evaluation? If so, describe.




Is the project related to one or more of the goals identified in the Michigan Statewide Historic Preservation Plan, 2020-
2025? If so, describe.




If applicable, describe the relationship of the project to other community planning and development, economic
development, revitalization initiatives, and/or cultural tourism efforts.




Are there other entities or partnerships that will benefit from the project?




How will the value of historic preservation be articulated through the project and how will the public be informed about
the project?




                                                            5
                                                          285
PROJECT BUDGET
Provide a project budget that matches the items described in the scope of work. All grant funds are paid on an expense
reimbursement basis only. The applicant must have funds available for expenditures amounting to 100 percent of the
project cost at the time of submittal. The subgrantee will be reimbursed for eligible expenses incurred (up to the grant
amount) at the end of the project. SHPO will review and may make changes to the budget line items as submitted in the
application. The final budget, as approved by SHPO, will become an attachment to the grant agreement.
                                                                                   CASH        IN-KIND      PROJECT
WORK ITEMS                                                      CLG FUNDS
                                                                                   MATCH       MATCH         TOTAL
                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                                                   $               $           $             $


                                            TOTAL COSTS:           $               $           $             $




                                                           6
                                                         286
WORK SCHEDULE
On the following page, provide a work schedule that includes major project milestones. Remember that work cannot begin
until the grant agreement is executed. Assume a July 2023 grant agreement date. Projects will have until September
30, 2025. This deadline is federally mandated. All project work, including billing and reporting, must be completed by
September 1, 2025, to facilitate project close-out by September 30. No extensions will be given.

Rehabilitation Planning Projects must include:

 •   Procurement
       o Submit draft procurement materials to SHPO for approval (allow 14 days for review)
       o Solicit bids
       o Bids due
       o Submit bids and rationale for bidder selection to SHPO for approval (allow 14 days for review)
       o Submit draft consultant contract to SHPO for approval (allow 14 days for review)
       o SHPO comments and recommends changes, as necessary, for consultant contract
       o Executed contract submitted to SHPO

 •   Project Work
       o Quarterly progress reports (due dates are January 15, April 15, July 15, and October 15)
       o Project kick-off meeting with CLG, SHPO, and consultant(s)
       o SHPO review of first and revised draft products (allow 30 days for review)
       o SHPO review of final products (allow 30 days for review)
       o Submission of completion report and reimbursement request to SHPO

Rehabilitation Projects must include:

 •   Procurement
       o SHPO pre-work site inspection
       o Submit draft procurement materials to SHPO for approval (allow 14 days for review)
       o Solicit bids
       o Bids due
       o Submit bids and rationale for bidder selection to SHPO for approval (allow 14 days for review)
       o Submit draft consultant contract to SHPO for approval (allow 14 days for review)
       o SHPO comments and recommends changes, as necessary, for consultant contract
       o Executed contract submitted to SHPO

 •   Project Work
       o Quarterly progress reports (due dates are January 15, April 15, July 15, and October 15)
       o Install project sign and submit photo documentation of sign to SHPO
       o Deadline for SHPO to prepare historic preservation easement (allow 90 days)
       o Begin construction
       o Finish construction
       o Sign easement, record at Register of Deeds, submit original recorded easement to SHPO
       o SHPO final on-site inspection
       o Submission of completion report and reimbursement request to SHPO




                                                          7
                                                        287
            Date                                                 Grant Agreement

July 2023                     Grant agreement executed

            Date                                              Grant Project Work Items




            Date                                                 Project Reporting

Every January 15, April 15,
                              Submit Quarterly Progress Report to SHPO for review while project is active
July 15, and October 15

            Date                                                 Project Close-Out

September 1, 2025             Submit Completion Report and Reimbursement Request

September 30, 2025            SHPO review and approval of Completion Report and Reimbursement Request

October 2025                  Subgrantee receives reimbursement


                                                          8
                                                         288
CERTIFIED LOCAL GOVERNMENT AUTHORIZED SIGNATORY
Signature:                                                                                         Date:

_________________________________________________________________                                  ______________________
The grant application form must be signed and dated by the authorized contract signatory or another appropriate individual.


Printed Name and Title:


                                                CLG Sponsorship (if applicable)
Signature:                                                                                         Date:

_________________________________________________________________                                  ______________________
The grant application form must be signed and dated by the authorized contract signatory or another appropriate individual.


Printed Name and Title:


APPLICATION CHECKLIST
Include the following exhibits to complete the CLG grant application and check the appropriate boxes to
indicate included exhibits. Please refer to the CLG Grant Manual for instructions.

☐   Exhibit A: Financial Certification

☐   Exhibit B: Resolution

☐   Exhibit C: Tax Incentive Certification

☐   Exhibit D: Deed and Ownership Information

☐   Exhibit E: Floodplain Certification

☐   Exhibit F: Letters of Support

☐   Exhibit G: Photographs, Maps, and Supporting Documentation
                •




                                                                  9
                                                                 289
                                                                                SITE VISIT REPORT & PROPOSAL
                                                                                        473 W Fullerton Ave, Elmhurst IL 60126
                                                                                     847.491.0110 ThirdCoastConservation.com


Visit Date September 22nd to 23rd, 2021                                                                                 To
Revision Date November 15th , 2022                                                      Brenda Nemetz, Collections Manager
Submitted By                                                                                     Lakeshore Museum Center
Anna Weiss-Pfau, AIC-PA, Principal Conservator 630.308.0390                                                  231-724-5532
[email protected]                                                               [email protected]
L.Liparini Studio ◆ Third Coast Conservation, LLC (LTC)



                                                          Project
                        Conservation & Maintenance Assessment of City of Muskegon
                         5 Hackley Park Bronze Sculptures and 2 Additional Bronzes

           Conservation & Maintenance Assessment of Sculptures within the City of Muskegon




                                                          Scope

Third Coast Conservation was asked to assess 7 sculptures in Hackley Park in Muskegon, Michigan, 1 cannon, and 5 bronze
sculptures, and 7 additional sculptures within the city.

This Site Visit Report & Proposal Part 1 will cover the assessment, treatment proposals, and associated costs to conserve 7
Hackley Park Bronze Sculptures and cannon.
Part 2 will include maintenance and treatment recommendations for the additional sculptures.




                                                                                                               Page 1 of 10

                                                          290
                                          Hackley Park Sculptures

1.
Civil War Monument – Aka “Soldiers and Sailors Monument”
Joseph Carabelli           1889               Bronze / Granite


Dimensions of Monument:             80’ (H) 30’ (W) 30’(W) (estimated)
              Liberty               12’
              4 Figures             7’      1’10” 1’10” (average)


This monument includes the Liberty sculpture at the top, with 4 other sculptures on the
lower portion including an Artilleryman, Infantryman, Calvaryman, and Sailor. More in-
depth descriptions are featured in the 1994, and 1997-1998 reports.

The monument was examined from a 60’ articulated mobile elevated work platform. It
was not sufficient to get very close to the Liberty statue. The use of a zoom lens on the
DSLR camera was able to aid in the examination. Also note that the sculpture was
examined in the rain, and so some areas of the sculptures may appear dark where they
are wet. Some areas of the sculptures were dry and thus able to be properly examined.

Previous Treatment
The previous treatment in 1997-1998 included both the bronze and the stone. The
bronze was washed to remove loosely adhered corrosion products, chemically
patinated with hot potassium sulfide, and hot waxed. The granite was considered in
excellent condition aside from a vertical crack on the stone that liberty is mounted to
and washed.

A Cleaning Report report from 2016 was provided and staff indicated that another
maintenance likely occurred in 2018-2019. This includes details of condition issues. It
was noted that 1 can of wax was used, and ¼ cup of detergent was used. It is not noted
what type of wax or detergent was used.

General Conditions pertaining to all 5 sculptures
All 5 sculptures appear in good condition from afar. Up close, blue-green oxidation has
begun to form in a spotted appearance, notably in areas of bolts, along the bottom
edges of the base, high points/edges of elements including the bottoms or folds in
pants, on top of each of the heads. This spotty appearance does seem consistent
throughout each of the sculptures. When the sculpture is examined completely dry, there may be areas with more
significant oxidized areas that may be unsightly. If this were the case, localized patination might be possible, but otherwise
since it is mostly evenly oxidizing, simply waxing may be appropriate.




                                                                                                                  Page 2 of 10

                                                           291
An unusual spotted and sometimes bubbling has appeared in areas where wax is often
heavily applied. This may be because of a heavy application of wax in that area or a
reaction due to a residue of a soap.
All sculptures have soiling and insect residues and nests.

The 2016 Cleaning Report indicates that the caulk is missing for several of the
sculptures. It may be possible that the conservators in the 1998 treatment never
applied caulk in order to provide for drainage of water.

Notable is that each sculpture was never given an Incralac coating. This was likely
chosen because it appears the previous work was performed from a lift or scaffolding and incralac is difficult to spray
appropriately in-situ. Additionally, it must be replaced when it begins to fail every 7 years, and this may be difficult for the
city to manage. Each sculpture was hot waxed during the 1998 treatment.


Stone
The monument’s stone (granite) was mostly in good condition. The most notable issue was that the stone, along with all of
the other stone monuments appeared to have an uneven shades of yellow discoloration. This was not mentioned in the
1997 treatment report or 1994 Outdoor Sculpture Condition Survey. This phenomenon might appear in images in the 1994
survey, however it is difficult to discern because the pdf is a photocopy.

On the side between the infantryman and the calvaryman there is a substantial amount of spalling on the side of the stone
that is not present in the 1994 images. It is the conservator’s opinion that this yellow discoloration may have been slowly
forming over time and is much more noticeable now than it was in 1994-1998. It is likely from a consolidation or water
repellent treatment that is ageing, and it may have begun to cause spalling in certain areas, including that mentioned
above. The original lead jointing and the crack on the stone top that were repaired in 1997-1998 appear in good condition.

Liberty
The Liberty sculpture was only examined from 60’, as the wrong lift size was delivered.
Structurally, the sculpture appears in good condition. The dark line along the back of the proper right arm that was
mentioned in 1994, was repaired in 1997-1998 treatment, and it appears to still be holding strong.
In the 2016 cleaning report, it was noted that the eagle was corroded on top and bottom; unfortunately this could not be
seen during this examination.
Spots of crusts forming in crevices is evident. There are more significant areas of oxidation forming in bright green spots,
including a yellow-green, likely from bird droppings.

Sailor (west)
Structurally the sailor appears in good condition. It was noted in the 1997-1998 treatment that the sailor’s cutlass (sword)
was replaced. This was not present in the 2016 report it was noted that a replacement is in the museum’s storage until a
conservator is hired to reattach it.
As mentioned in the general conditions, the sailor’s neckerchief has spots of bubbling in the wax layer. The hat also has
extensive green corrosion formation.

Artilleryman (south)
It was noted in the 2016 cleaning that there is a large spot of corrosion where the water drips on the statue from the
granite above. This area may require patina correction, as it has become green/blue.

Infantryman (east)
The back of the infantryman’s hat appears heavily oxidized, and this may be an area that requires some patina correction.
There is also extensive wax build up as well in crevices, which has also been previously noted.

Cavalryman (north)
Conditions consistent with the above and previous reports, including the missing nut on the back of the base.

                                                                                                                    Page 3 of 10

                                                             292
Treatment Questions
1. How much would the city like us to address oxidation (blue-green spotting)? Would a wax removal and replacement
     with a tinted wax be sufficient, or just a spot treatment of more substantial oxidized areas, or full re-patination? Full
     repatination would be a much more substantial operation, including scaffolding or the deinstallation of the figures. A
     lacquer layer would also protect them further. The conservators would suggest the spot treatment, with a tinted wax
     at this time, as they have not completely oxidized and from the ground the oxidation is hard to see, but this may be a
     consideration for the future.

Treatment Proposal
Setup needs: 1 x 80’ lift and 1 x 40-60’ lift or scaffolding
    1. Document before, during, and after treatment in written and photographic methods
    2. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
         to remove dirt, dust, grime, accretions, followed by thorough water washing.
    3. Come prepared to perform minor structural repair and patching, as well as toning of previous fills if they have
         degraded.
    4. Remove wax completely on the entire sculptures with appropriate solvents.
    5. Wash sculptures with distilled water to ensure any pervious soaps applied to the sculptures is removed or
         deactivated.
    6. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
         likely be present in small areas, especially on the Liberty sculpture.
    7. Perform minor patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas.
                 i. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
                       Testing will be performed to determine the timeline upon which the potassium sulfide should be
                       rinsed with distilled water.
    8. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
    9. Hot-wax sculptures with Butcher’s Bowling Alley Wax.


2.
Abraham Lincoln
Charles Henry Neihaus   1899              Bronze / Granite
Dimensions: Estimated 5’ (H) x 4’ (W) with 7’ tall base

Condition
Object is in good condition overall.
On the surface there is red paint on the top of the base near the feet in small areas.
There is significantly more oxidation over several surfaces and areas than the other
sculptures in Hackley Park. This sculpture may be interacted with more often with the
public, as it is much more climbable.
The oxidation is along both of his legs, cloak, upper folds of his clothing and hair, the top
surface of the base.
The wax layer appears to be becoming cloudy overall by most significantly along the back of
the chair.
Review of the 2016 report does not indicate any major changes.

Stone
There appears to be the same yellowing of the stone as the Civil War Memorial, including
some areas of spalling on the base.


Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
    1. Document before, during, and after treatment in written and photographic methods
                                                                                                                  Page 4 of 10

                                                           293
    2.    Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
          to remove dirt, dust, grime, accretions, followed by thorough water washing.
    3.    Remove red paint with appropriate solvents.
    4.    Come prepared to perform minor structural repair and patching as needed.
    5.    Remove wax completely on the entire sculpture with appropriate solvents.
    6.    Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
          likely be present in small areas.
    7.    Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas including
          on Lincoln’s cloak and legs, top surface of the base.
                  i. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
                      Testing will be performed to determine the timeline upon which the potassium sulfide should be
                      rinsed with distilled water.
    8.    Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
    9.    Hot-wax sculpture with tinted Butcher’s Bowling Alley Wax.


3.
Ulysses S. Grant
J. Massey Rhind         1899                Bronze/Granite
Dimensions: Estimated 7’ (H) with 7’ tall base

Condition
Good condition. More areas of oxidation including on the strap, along the perimeter
of the base. None disfiguring. Pooling
on top of the base in oxidized iron, so there is likely an area of steel exposed that is
causing this pooling; this was noted to have been growing in the 2016 notes.
Same issues with the base.
It was noted in the 2016 notes that the sword tip and ring from the sword strap were
missing, and these on file in the Museum until a conservator can reattach them. No
other new condition notes visible.

Stone
The same issues as noted for the other stone however this stone appears more
significant drip-like yellow discoloration, as well as from the ferrous oxidation, and a
blue/green along the top edge of the stone.
Additionally, noted in 2016 was a white crystalline material along the edge. This
should be tested for salts or lead.


Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
    1. Document before, during, and after treatment in written and photographic
         methods
    2. Test white crystalline material for lead or salts.
    3. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
         to remove dirt, dust, grime, accretions, followed by thorough water washing.
    4. Come prepared to perform minor structural repair and patching as needed if the city would like the missing
         elements reattached.
    5. Remove wax completely on the entire sculpture with appropriate solvents.
    6. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
         likely be present in small areas.
    7. Excavate area of ferrous corrosion and treat with tannic acid.
    8. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas if
         necessary.
                                                                                                               Page 5 of 10

                                                            294
                 i.
                  Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
                  Testing will be performed to determine the timeline upon which the potassium sulfide should be
                  rinsed with distilled water.
    9. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
    10. Hot-wax sculpture with Butcher’s Bowling Alley Wax.

4.
William Tecumseh Sherman
J. Massey Rhind         1899                Bronze/Granite
Dimensions: Estimated 7’ (H) with 7’ tall base


Condition
This sculpture in in good condition. The wax is ageing around the base, but this layer
seems in otherwise good condition. There is more insect activity with this
sculpture, including spider webs, growth and white spots.
Highpoints exhibit some oxidation but not as significantly as other sculptures in this
group. Corrosion particularly significant along the bottom edges where the
sculpture meets the base.

Stone
The same issues as noted for the other stone however this stone has substantially
more biological growth on it compared to the others. May suggest washing with D2
to kill the biological growth. The yellowing is more drip-like, as well as from the
ferrous oxidation, and a blue/green along the top edge of the stone.

Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
    1. Document before, during, and after treatment in written and
         photographic methods
    2. Wash with a power washer, followed by water washing with 1% Orvus
         (detergent) and synthetic bristle brushes to remove dirt, dust, grime, accretions, followed by thorough water
         washing.
                 a. This treatment would also include the base, followed by the use of D2 biological solution to try to
                     reduce the biological growth on the base.
    3. Come prepared to perform minor structural repair and patching as needed.
    4. Remove wax completely on the entire sculpture with appropriate solvents.
    5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
         likely be present in small areas.
    6. Excavate area of ferrous corrosion and treat with tannic acid.
    7. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas if
         necessary. This is not likely as no areas were particularly distracting, but it will be prepared for.
                 a. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
                     Testing will be performed to determine the timeline upon which the potassium sulfide should be
                     rinsed with distilled water.
    8. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
    9. Hot-wax sculpture with Butcher’s Bowling Alley Wax.




                                                                                                             Page 6 of 10

                                                           295
5.
William McKinley
Charles Henry Niehaus/Joseph Carabelli                  1899              Bronze/Granite

Condition
Structurally stable.
Small areas of oxidation beginning in crevices, as well as significant biological growth
particularly along the interior of the jacket.
The sculpture overall exhibiting significant deterioration in a previously applied wax
layer, as it appears to be blooming throughout, particularly the jacket.
White oxidation running down the side of the jacket along the arm. Proper left
shoulder may have an additional darkening phenomenon occurring, potentially a
biological growth or a past treatment.

Stone
The stone base is in good condition and had just been power washed when the
conservator arrived.

This sculpture was not maintained by the city or museum in previous years.

Treatment Proposal
Setup needs: ladders, rolling scaffold – this sculpture is located on top of a stone
monumental base platform with a flower bed immediately behind the platform, so a
lift would likely not be desired. Conservators will attempt the work with a rolling scaffold with outriggers and ladders from
the front
      1. Document before, during, and after treatment in written and photographic methods
      2. Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
           to remove dirt, dust, grime, accretions, followed by thorough water washing.
      3. Come prepared to perform minor structural repair and patching as needed if the city would like the missing
           elements reattached.
      4. Remove wax completely on the entire sculpture with appropriate solvents.
      5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
           likely be present in small areas.
      6. Perform patina correction with potassium sulfide for more unsightly and more heavily oxidizing areas if
           necessary. This was not visible but conservators will be prepared if needed.
                   i. Area will be rinsed with distilled water, surface heated with a blow-torch, potassium sulfide applied.
                        Testing will be performed to determine the timeline upon which the potassium sulfide should be
                        rinsed with distilled water.
      7. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
      8. Hot-wax sculpture with Butcher’s Bowling Alley Wax.




                                                                                                                Page 7 of 10

                                                            296
6.
General Philip Kearny
Henry Kirke Brown         1901                Bronze/Granite
Located in Pocket park
Dimensions: Estimated 7’ (H) on 7’ tall stone base

Condition
Object viewed in the rain.
Object is in generally good condition. Oxidation was more significant along edges and
highpoints, as well as corrosion along the base of the bronze around the pedestal.
As noted in the 2016 notes, there is a missing sword strap.

This wax appears in better condition, and may not require the wax to be completely
removed, but it may required when able to be viewed up close in drier conditions.

Treatment Proposal
Setup needs: ladders, rolling scaffold with outriggers
    1. Document before, during, and after treatment in written and photographic
         methods
    2. Wash with a power washer, followed by water washing with 1% Orvus
         (detergent) and synthetic bristle brushes to remove dirt, dust, grime, accretions,
         followed by thorough water washing.
    3. Come prepared to perform minor structural repair and patching as needed if the
         city would like the missing elements reattached if they have the strap.
    4. Remove wax completely on the entire sculpture with appropriate solvents.
    5. Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
         likely be present in small areas.
    6. Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
    7. Hot-wax sculpture with Butcher’s Bowling Alley Wax.

7.
Admiral Farragut
Charles Henry Niehaus    1899                Bronze/Granite
Dimensions: Estimated 7’ (H) on 7’ tall base

Condition
Good condition overall. Areas of oxidation appearing on the proper left leg, as well as
other high points like the cloak’s edge and top of binoculars.

The strap on the back appears to be hanging inappropriately and has damaged part of
the cloak. This should be checked against historic images to see if this is to be
reassembled in a different way. Part of that strap is scratched as well and has a green
oxidation forming.
Bright green, likely bronze disease (bright green corrosion) forming under the back of
the hair.
Conservator does not see a rusty area on the back as noted in 2016 but it could be the
lighting and should be examined further once a lift is procured.

Stone
Same yellow discoloration phenomenon on the base as the other monuments.

Treatment Proposal
Setup needs: 1 x 40-60’ lift, ladders
                                                                                                             Page 8 of 10

                                                           297
     1.   Document before, during, and after treatment in written and photographic methods
     2.   Wash with a power washer, followed by water washing with 1% Orvus (detergent) and synthetic bristle brushes
          to remove dirt, dust, grime, accretions, followed by thorough water washing.
     3.   Come prepared to perform minor structural repair and patching as needed if the city would like the missing
          elements reattached if they have the strap.
     4.   Remove wax completely on the entire sculpture with appropriate solvents.
     5.   Excavate areas of bronze disease (light powdery green corrosion). This was not seen in the examination but it will
          likely be present in small areas.
     6.   Treat the sculpture overall with benzotriazole (BTA) a corrosion inhibitor for bronze 3% in ethanol.
     7.   Come prepared to do additional patina work but likely not necessary.
     8.   Hot-wax sculpture with Butcher’s Bowling Alley Wax.




                                                        Images

Images are available for download from the following Google Drive link. The link will expire in 2 months from the date of
this report.
https://drive.google.com/drive/folders/1jya7eFaEv273u8hb3ZjC1GeOWXsW-hdT?usp=sharing




                                                       Estimate
City to provide quick coupler and water hookup for Hackley Park.



Equipment & Rental Requirements
 Object   Object Name                   Treatment Proposed      Major Equipment Needed            Rental Costs
 #
 1        Civil War Monument            Wax removal, minor      Scaffolding or 80’ lift rental    Provided by city
 2        Abraham Lincoln               corrosion treatment     20’ Lift Rental                   Provided by city
 3        Ulysses S. Grant              and patina
 4        William Tecumseh              correction, hot wax
          Sherman
 7        Admiral Farragut
 5        William McKinley                                      Ladders/rolling scaffolding       Provided by city
 6        General Philip Kearny
                                                                                          Total   $0




                                                                                                                 Page 9 of 10

                                                          298
Project Costs


Trip 1 – Treatment:      4 perimeter Hackley park sculptures
         Equipment:      City will provide 2 x 34’ lifts, ladders, water hookup

 Daily Rate                               $920/per         4 people               5 days         18,400
 Transportation, 2-3 vehicles             408 miles        $0.58/mile             2 cars         480
 Administration/reports/documentation                                                            900
 Per Diem                                 $60              4 people               5 days         1200
 Hotel                                    $250             4 nights               4 rooms        4000
                                                                                  Total 1/3      $21,680


Trip 2 – Treatment:      Civil War monument with other crew
         Equipment       City will provide bring baker scaffolding with outriggers and 1 x 34’ lift (or 2 lifts), ladders, water
                         hookup

 Daily Rate                               $920/per         3 people               5 days          13,800
 Transportation, 2-3 vehicles             408 miles        $0.58/mile             2 cars          480
 Administration/reports/documentation                                                             900
 Per Diem                                 $60              4 people               5 days          900
 Hotel                                    $250             4 nights               3 rooms         3000
                                                                                  Total 2/3       19,080



Trip 3— Treatment:       Civil war monument
        Equipment:       City will provide 1 x 80’ lift and 1 x 34’ lift, or full monument scaffolding, water hookup

 Daily Rate                               $920/per         4 people               5 days          18,400
 Transportation, 2-3 vehicles             408 miles        $0.58/mile             2 cars          480
 Administration/reports/documentation                                                             900
 Per Diem                                 $60              4 people               5 days          1200
 Hotel                                    $250             4 nights               4 rooms         4000
                                                                                  Total 3/3       $21,680

TOTAL: Hackley Park Sculptures:                                                                  $62,440



Trip 4— Treatment:       McKinley and Kearny
        Equipment:       City will provide 1 x 80’ lift and 1 x 34’ lift, or full monument scaffolding, water hookup

 Daily Rate                               $920/per         3 people               5 days          13,800
 Transportation, 2-3 vehicles             408 miles        $0.58/mile             2 cars          480
 Administration/reports/documentation                                                             900
 Per Diem                                 $60              3 people               5 days          900
 Hotel                                    $250             4 nights               3 rooms         3000
                                                                                  Total 3/3       $19,080


                                                                                                                  Page 10 of 10

                                                          299
                                          City of Muskegon

                            COMMITMENT OF MATCHING FUNDS for

                          Muskegon Historic District Monument Conservation

WHEREAS, Muskegon City Commission commits the necessary matching funding for an application
titled, “Muskegon Historic District Monument Conservation” to the Michigan State Historic Preservation
Office within the 2023 Certified Local Government (CLG) Grant Program for completion of conservation
work on the monuments within Hackley Park; and,

WHEREAS, the City of Muskegon desires to ensure continued care for the monuments within the site;
and,

WHEREAS, the proposed application is supported by the Historic District Commission; and,

WHEREAS, funding is available from the State Historic Preservation Office to support conservation
projects of this nature, and

WHEREAS, the City of Muskegon is hereby making a financial commitment to the project in the amount
of $15,000 matching funds in cash from the Cities General Fund should the project be selected for grant
award; and

NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners hereby authorizes
and supports submission of a 2023 CLG Grant for $62,440 for completion of Muskegon Historic District
Monument Conservation, and further resolves to make available its financial obligation amount of
$15,000 for a total project cost of $77,440 during the Cities 2023-2024 fiscal year.

Yeas:

Nays:

Absent:

I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
January 10th, 2023.


BY:       Ann Meisch, City Clerk



          ______________________________________________________________________________
          Signature                                           Date




                                                 300
                                           City of Muskegon

                                   RESOLUTION OF SUPPORT for

                          Muskegon Historic District Monument Conservation

WHEREAS, THE City Of Muskegon will file an application to the Michigan State historic Preservation
Office (SHPO) for the Certified Local Government Grant program in the amount of $62,440 for the
Muskegon Historic District Monument Conservation, and;

WHEREAS, the City of Muskegon acknowledges that the Certified Local Government Grant Program is
an expense reimbursement program. The City of Muskegon authorizes expenditures in the amount of
$77,440 for the project work, with funds drawn from the City General Fund, and;

WHEREAS, the City of Muskegon acknowledges that reimbursement will be made upon completion of
final project work, SHPO acceptance of the final completion report, SHPO audit and acceptance of
financial documents for eligible costs and SHPO acceptance of a historic preservation easement recorded
at the Register of Deeds, and;

WHEREAS, upon approval of the application by the SHPO the DPW Director shall be authorized to sign
the grant agreement, any necessary grant agreement amendments, and other agreement-related
documents, and;

WHEREAS, the DPW Director is appointed as the Grant Project Manager who will oversee the day-to-
day grant management and grant administration duties, including vendor selection and coordinating the
payment of vendor invoices;

WHEREAS, upon completion of the project, the DPW Director shall be required to and is authorized to
sign the required historic preservation easement and record it at the County Register of Deeds before the
grant reimbursement will be processed by the SHPO;

NOW, THEREFORE LET IT BE RESOLVED, that City of Muskegon directs the DPW Director to file
an application for a grant from the SHPO Certified Local Government Program for $62,440; and

FURTHER, LET IT BE RESOLVED, that the DPW Director be authorized to sign the grant application
and any additional grant documentation, and to take any additional administrative actions necessary to
implement this resolution.

Yeas:
Nays:
Absent:

I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
January 10th, 2023.


BY:       Ann Meisch, City Clerk

          ______________________________________________________________________________
          Signature                                           Date




                                                   301
                       Agenda Item Review Form
                        Muskegon City Commission
Commission Meeting Date: January 10th, 2023           Title: Treasury Office Fire Doors

Submitted By: Dan VanderHeide                         Department: Public Works

Brief Summary:
Staff is seeking Commission approval to award replacement of the fire doors at the Treasury Desk.

Detailed Summary & Background:
The existing fire safety doors at the Treasury Department that automatically deploy in the event of
a fire alarm are currently non-functional and in need of replacement. These doors are a building
code requirement for compliance and need to be replaced. Staff solicited bids for the project and
bids were received as follows and attached:
      Overhead Door - $45,626.00
      Firefighter Sales and Service - $60,000.00
      Garage Door Specialist – Did Not Bid
      Quality Door – Did Not Bid


Staff estimates the need to expend an additional $8,000 to complete the miscellaneous items that
are not included in the original bid. These items will be procured at the staff level in accordance
with the applicable provisions of the City Purchasing Policy. This item was anticipated in the 22/23
budget cycle and funds will be drawn from the original budget line item 101-801-901-092109

Goal/Focus Area/Action Item Addressed: N/A

Amount Requested: $45,626.00                          Amount Budgeted: $60,000.00

Fund(s) or Account(s): 101-801-901-092109             Fund(s) or Account(s): 101-801-901-092109

Recommended Motion:
Approve the low bid from Overhead Door in the amount of $45,626.00 for the replacement of the
Treasury Department Fire Doors.

Approvals:                       Legal Review                         Guest(s) Invited / Presenting
Immediate Division Head          Information Technology               Yes
Other Division Heads             Communication                        No

For City Clerk Use Only:
Commission Action:

                                                302
303
304
                                                                       FIRE-FIGHTER SALES & SERVICE, INC.
                                                                                    3015 Madison Avenue, SE
                                                                                     Grand Rapids, MI 49548
                                                                             Phone: 616-452-2184 Fax: 616-452-8886
                                                                                Email: [email protected]
                                                                                  Web: www.firefightersales.com




April 7, 2022

Muskegon City Hall
933 Terrace ST
Muskegon , Mi 49440

Re: Fire Door

Hi Terry,
Fire Fighter Sales and Service is pleased to provide you with a proposal:

(2) Amarr Cookson 17'0" x 17'0" Model ERD10 Rolling Fire Doors,
AlarmGard Motors, (1) door is left hand drive, (1) door is right hand
drive, hook to existing fire system, grey, mounted to steel, take out and
haul away exising doors, install new doors and openers. Bulkheads and
all building materials surrounding and enclosing door have to be
removed by others before door install.

*****All high and low voltage wiring by others, not included*****
*****Submittals and shop drawings available on request*****


Our Price as Described: $60,000.00 ( Sixty Thousand Dollars)

We appreciate you looking to Fire Fighter Sales and Service for all your fire protection needs. Please feel free to
contact me anytime with any questions or concerns at [email protected] or 616-452-2184

Thanks,
 Bryan Hatchew
Fire Fighter Sales & Service
Website Fire Fighter Sales and Service




  FIRE ALARM SYSTEMS ∙ FIRE SUPPRESSION SYSTEMS ∙ NEW FIRE EXTINGUISHERS ∙ FIRE EXTINGUISHER SERVICE ∙ FIRE HOSE
SMOKE & HEAT DETECTORS ∙ EMERGENCY & EXIT LIGHTING ∙ HYDROSTATIC TESTING ∙ FIRE PROTECTION CONSULTING & TRAINING
                                                         305
                                 Acceptance of Proposal
All outstanding invoices are subject to a 1.5% monthly finance charge on any balance past due over thirty (30)
days. Until all amounts due under this proposal agreement or any amendments thereof have been paid. Fire
Fighter Sales and Service, Inc. shall retain its security interest in all equipment parts, smallwares, accessories,
attachments, additions, and all replacements of them installed, affixed to or used in connection herewith, and, if
the buyer sells or otherwise disposes of such collateral in violation of the terms of this agreement, in proceeds of
such sale or disposition. If buyer fails to pay, when due, any amount due to the seller, the seller may enter any
premises and without breach of the peace take possession of any or all of the collateral hereunder and exercise the
rights on default of a secured party under the uniform commercial code. Except as otherwise provided herein, this
proposal does not include any charge for electrical wiring or plumbing and is subject to acceptance by buyer and
seller within thirty (30) days from the date hereof and only in accordance with the terms stated.

I agree to the scope of work, price, terms and exclusions hereof and agree to purchase described goods and
                                        services as proposed hereby.




Customer Authorized Agent Signature                                                            Date
                                                       306
                                                                    FIRE-FIGHTER SALES & SERVICE, INC.
                                                                                 3015 Madison Avenue, SE
                                                                                  Grand Rapids, MI 49548
                                                                          Phone: 616-452-2184 Fax: 616-452-8886
                                                                             Email: [email protected]
                                                                               Web: www.firefightersales.com




  FIRE ALARM SYSTEMS ∙ FIRE SUPPRESSION SYSTEMS ∙ NEW FIRE EXTINGUISHERS ∙ FIRE EXTINGUISHER SERVICE ∙ FIRE HOSE
SMOKE & HEAT DETECTORS ∙ EMERGENCY & EXIT LIGHTING ∙ HYDROSTATIC TESTING ∙ FIRE PROTECTION CONSULTING & TRAINING
                                                      307
                           Agenda Item Review Form
                            Muskegon City Commission
Commission Meeting Date: January 10th, 2023          Title: Dollar General Utility Easement

Submitted By: Dan VanderHeide                        Department: Public Works

Brief Summary:
Staff is seeking Commission approval for a utility easement within 381 E. Laketon Avenue, where a soon-
to-be rebuilt Dollar General store is making site changes.

Detailed Summary & Background:
Staff requested and the developer provided a utility easement document for rights across the rear parking
lot of 381 Laketon Avenue, which is being rebuilt as a Dollar General store. The easement documents and
related sketches are included in the packet. The easement will formalize property and maintenance rights
for a long-standing sanitary sewer and storm sewer corridor (in a former alley).

Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure

Amount Requested: N/A                                Amount Budgeted: N/A

Fund(s) or Account(s): N/A                           Fund(s) or Account(s): N/A

Recommended Motion:
Approve the public utility easement agreement at 381 E. Laketon Avenue and authorize the Clerk to sign on
the City’s behalf.

Approvals:                       Legal Review                        Guest(s) Invited / Presenting
Immediate Division Head         Information Technology               Yes
Other Division Heads             Communication                       No

For City Clerk Use Only:
Commission Action:




                                                    308
                             PUBLIC UTILITY EASEMENT

      THIS PUBLIC UTILITY EASEMENT (“Agreement”) dated ______________, 2022
between MIDWEST V, LLC, a Michigan limited liability company, whose address is 1435
Fulton Street, 2nd Floor, Grand Haven, Michigan 49417 (“Grantor”) and the City of
Muskegon, a Michigan municipal corporation, whose address is 933 Terrace St.,
Muskegon, Michigan 49440-1397 (“City”).

                                        Recitals:

   A. Grantor owns a certain parcel of real estate that is located in the City of Muskegon,
      County of Muskegon, State of Michigan, which is more specifically described on
      the attached Exhibit A (“Property”).

   B. The City desires to obtain an easement under, across and through a portion of the
      Property.

   C. Grantor agrees to grant to the City a utility easement under, across and through a
      portion of the Property for the purposes as set forth in this Agreement.

THEREFORE, in consideration of the mutual covenants, conditions and agreements set
forth below, the parties hereto agree as follows:

   1. Grant of Easement. In consideration of less than One Hundred Dollars ($100.00)
      plus other valuable consideration, Grantor grants and conveys to the City a
      permanent, non-exclusive easement and right-of-way under, across and through
      that portion of the Property as described in Exhibit B (“Easement Area”).

   2. Purpose of the Easement. The City shall use the Easement Area for the purpose
      of constructing, operating, maintaining, repairing, improving or replacing the
      pipelines, connections, leads and all other components of the City’s sanitary sewer
      and storm sewer systems placed within the Easement Area (“Utility Activities”).

   3. Access to the Easement Area. The City shall have the right of ingress and egress
      to the Easement Area from the public right-of-way, and, if necessary, through
      areas of the Property that are immediately adjacent to the Easement Area, in order
      to carry out the Utility Activities, subject to the following conditions:



                                            1

                                           309
   a) Perform the Utility Activities without cost to Grantor and in such a manner as
      not to unreasonably interfere with Grantor’s use of or the business operations
      conducted on the Property.
   b) Restore the Easement Area (and any other portions of the Property that are
      disturbed or damaged by the City) without cost to Grantor after completion of
      the Utility Activities to the same condition as existed before any such Utility
      Activity was performed. If necessary, such restoration shall include re-grading
      and reseeding any lawn areas disturbed or damaged by the City’s activities.
   c) Exercise reasonable care to protect any fixed structures, landscaping and other
      improvements on the Property during the performance of Utility Activities.
   d) Grantor agrees not to construct any buildings or permanent structures on or
      within the Easement Area, unless prior written approval is given by the City for
      a particular building or structure.

4. Authority of Representatives. The parties represent and warrant to the other that
   this Agreement and its execution by the individual(s) on its behalf are authorized
   by members or governing body of that party.

5. Binding Effect. This Agreement shall bind the parties, and their successors and
   assigns. The parties do not intend to confer any benefits on any person, firm,
   corporation, or other entity which is not party to this Agreement.

6. Amendment. This Agreement shall not be amended or modified except in writing
   signed by both parties.

7. Governing Law. This Agreement is governed under applicable Michigan law. Both
   parties had the assistance of legal counsel in the negotiation and preparation of
   this Agreement. Therefore, no construction or ambiguity of this Agreement is
   resolved against either party.

8. Exemption from Transfer Tax. This Agreement is exempt from transfer tax
   pursuant to MCL 207.505(a) and MCL 207.526(a).


     [Remainder of Page Left Intentionally Blank. Signature Page Follows.]




                                        2

                                       310
MIDWEST V, LLC,
a Michigan limited liability company

By: _______________________
Name:_____________________
Its:________________________

STATE OF MICHIGAN                     )
                                      ) ss.
COUNTY OF ______________              )

       The foregoing instrument was acknowledged before me on ___________ _____,
2022, by ______________________, the ____________ of Midwest V, LLC, a Michigan
limited liability company, on behalf of said limited liability company.


                                              Print Name:
                                              Notary Public                 County, MI
                                              My commission expires:
                                              Acting in ________________________ County

CITY OF MUSKEGON,
a Michigan municipal corporation

By: __________________________
Name:________________________
Its:___________________________

STATE OF MICHIGAN                     )
                                      ) ss.
COUNTY OF MUSKEGON                    )

      The foregoing instrument was acknowledged before me on ___________ _____,
2022, by ____________________, the ______________ of the City of Muskegon, a
Michigan municipal corporation, on behalf of said municipal corporation.


                                              Print Name:
                                              Notary Public                County, MI
                                              My commission expires:
                                              Acting in Muskegon County

Prepared By & After Recording Return To:
Midwest V, LLC
Scott M. Knowlton, Esq.
1435 Fulton St., 2nd Floor
Grand Haven, MI 49417


                                                3

                                               311
                                        EXHIBIT A

                                         Property

Parcel 1:

The East 15 feet of Lot 9 and entire Lots 10, 11, 12, 13 and 14 of VanDams Subdivision,
of North 144 feet of Lot 1 of Block 1 of R. P. Easton's Second Subdivision of part of
Section 32, Town 10 North, Range 16 West, City of Muskegon, Muskegon County,
Michigan, as recorded in Liber 6 of Plats, Page 16, Muskegon County Records.

Together with the vacated East and West alley running from Smith to Woods Streets,
lying South of the South line of said lots and adjacent thereto.

Parcel 2:

Lots 11 and 12 of Block 1 of Subdivision of part of Lot 1, Block 1 of R. P. Easton's Second
Subdivision of part of Section 32, Town 10 North, Range 16 West, City of Muskegon,
Muskegon County, Michigan, except the North 20 feet of the South 25 feet of said Lots
11 and 12; also the vacated North and South alley lying between said Lots 11 and 12 of
Block 1 of Subdivision of part of Lot 1, Block 1 of said R. P. Easton's Second Subdivision,
except the South 25 feet thereof.

Parcel 3:

The North 20 feet of the South 25 feet of Lots 11 and 12 of Block 1 of Subdivision of part
of Lot 1 of Block 1 of R. P. Easton's Second Subdivision and the South 25 feet of the
vacated North and South alley lying between the North and South lines of said Lots 11
and 12, being the lands conveyed to the City of Muskegon by Deeds recorded in Liber
654, Page 563, and Liber 658, Page 168, in the Office of the Register of Deeds for said
County of Muskegon.

The property address and tax parcel number listed below are provided solely for
informational purposes, without warranty as to accuracy or completeness. If the
information listed below is inconsistent in any way with the legal description listed above,
the legal description listed above shall control.

Property Addresses:         381 E. Laketon Avenue, Muskegon, MI 49442
                            1827 Wood Street, Muskegon, MI 49442

Tax Parcel Nos.:            61-24-810-000-0010-00
                            61-24-762-001-0011-00




                                            312
313
                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023                            Title: Sale of 1320 Spring
                                                                     Street

Submitted By: LeighAnn Mikesell                                      Department: City Manager

Brief Summary: Staff is requesting approval of a purchase agreement for 1320 Spring Street.



Detailed Summary & Background:
1320 Spring Street was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. The offer is $2,580 over asking price and is contingent on the sale of
the buyer’s current home. The earnest money deposit was increased because the offer is
contingent. There are no seller concessions.
The home will serve as a model home until mid-March.

Goal/Focus Area/Action Item Addressed:
Create an environment that effectively attracts new residents and retains existing residents by
filling existing employment gaps, attracting new and diverse businesses to the city, and expanding
access to a variety of high-quality housing options in Muskegon. Diverse housing types

Amount Requested: N/A                                Amount Budgeted: N/A



Fund(s) or Account(s):                               Fund(s) or Account(s):

Recommended Motion: To approve the purchase agreement for 1320 Spring Street and authorize
the City Manager Jonathan Seyferth or Deputy City Manager LeighAnn Mikesell to sign.



Approvals:                                                           Guest(s) Invited / Presenting
Immediate Division Head         Information Technology
Other Division Heads            Communication                        Yes
                                                                     No
Legal Review

For City Clerk Use Only:
Commission Action:


                                               314
dotloop signature verification: dtlp.us/OArF-geeP-n0c2

                                                         WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
                                                                                                                                                                           #           1
         DATE:                        12/11/2022                ,                      (time)                                                   MLS #                 22050191

         SELLING OFFICE:                      West Urban Realty LLC        BROKER LIC.#:        6505429509                        REALTOR® PHONE:                     616-366-2459

         LISTING OFFICE:                     West Urban Realty LLC        REALTOR® PHONE:                       6163662459

        1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
            counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
            in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference
            to "time" refers to local time.
         2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
             Real Estate Agency Relationships. The selling licensee is acting as (choose one):
                  Agent/Subagent of Seller             Buyer’s Agent          Dual Agent (with written, informed consent of both Buyer and Seller)
                  Transaction Coordinator
              Primary Selling Agent Name:                    Mariana Murillo VandDam            Email: mariana@westurbanrealtymi. Lic.#:                                  6506015435

             Alternate Selling Agent Name:                                              Email:                                   Lic.#:
         3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
                 Buyer has received the Seller’s Disclosure Statement, dated                               . Seller certifies to Buyer that the Property
                 is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any
                 changes in the content of the disclosure statement.
                 Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
                 of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
                 Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
                 registered mail. Exceptions:             Builder warranty started from the date of occupancy permit from the City of Muskegon
                 Seller is exempt from the requirements of the Seller Disclosure Act.
        4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
            and will be an integral part of this Agreement.
        5. Property Description: Buyer offers to buy the property located in the         City     Village Township of                Muskegon          ,
            County of               Muskegon County            , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
                                                                      1320 Spring Street, Muskegon, MI 49442
             with the following legal description and tax parcel ID numbers:
                                                             CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 BLK 269


             PP#                                                                  24-205-269-0002-00                                                                                          .
           The following paragraph applies only if the Premises include unplatted land:
           Seller agrees to grant Buyer at closing the right to make (insert number) na                  division(s) under Section 108(2), (3), and
           (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
           with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
           number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
           will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
           before                                  , of the proposed division to create the Premises.
        6. Purchase Price: Buyer offers to buy the Property for the sum of $                                    $175,480
                                               one hundred seventy-five thousand four hundred eighty                                       U.S. Dollars
        7. Seller Concessions, if any:                                                                          0


        8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
           SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
           are currently available to Buyer in cash or an equally liquid equivalent.
             If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
             three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
             receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
                   CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
                   verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
                   Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
                   at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
                   arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
                   NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
                   obtain a                                type                 (year) mortgage in the amount of              % of the Purchase Price
                   bearing interest at a rate not to exceed                % per annum (rate at time of loan application), on or before the date the sale is
                   to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
                   process the application, within                    days after the Effective Date, not to impair Buyers’ credit after the date such loan if
                   offered.      Seller    Buyer will agree to pay an amount not to exceed $                         representing repairs required as a
                   condition of financing. Buyer         agrees      does not agree315to authorize Buyer’s Agent/Dual Agent to obtain information from
         ©Copyright, West Michigan REALTOR® Associations
         Page 1 of 6 Rev. Date 8/2022                                                               WF                 AF          Buyer’s Initials       LM                   Seller’s Initials
                                                                                                    12/12/22          12/11/22                            12/13/22
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                                                                                                                          West Michigan Regional Purchase Agreement                         Page 2 of 6
                   Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
                   Exceptions:
                  contingent on loan against their current home. Seller gives buyer 60 days to process and close on loan.
                   SELLER FINANCING (choose one of the following):                        CONTRACT or                         PURCHASE MONEY MORTGAGE
                   In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
                   credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
                   Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
                   within 48 hours. Seller is advised to seek professional advice regarding the credit report.
                   $                           upon execution and delivery of a
                   form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
                   will be payable in monthly installments of $                            or more including interest at                    % per annum,
                   interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
                   will become due and payable                            months after closing. Any appraisal required by Buyer shall be arranged and
                   paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:


                   EQUITY (choose one of the following):         Formal Assumption or       Informal Assumption
                   Upon execution and delivery of:       Warranty Deed subject to existing mortgage OR             Assignment of Vendee Interest
                   in Land Contract, Buyer to pay the difference (approximately $                             ) between the Purchase Price above
                   provided and the unpaid balance (approximately $                             ) upon said mortgage or land contract, which Buyer
                   agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
                   taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
                   (10) days after the Effective Date of this Agreement. Exceptions:

                   OTHER:


         9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
                   IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
                   IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:

                   A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
                   or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
                   writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
                   Money Deposit.
                   IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
                   of a sale or exchange of Buyer’s property located at
                                                         on or before                                      . Seller will have the right to continue to
                   market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
                   thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
                   price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
                   promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:

         10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
             improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
             following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
             bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
             disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
             shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
             pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
             heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
             heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
             rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
             backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
             detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
             opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
                                                              Microwave, dishwasher, fridge, stove, washer, and dryer, central l air




              but does not include:


                                                         1320 Spring Street, Muskegon, MI 49442                                                                 12/11/2022
                                                 Subject Property Address/Description                                                                                Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
         Revision Date 8/2022                                                                              WF                  AF            Buyer’s Initials             LM             Seller’s Initials
                                                                                                          12/12/22           12/11/22                                    12/13/22


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                                                                                                                     West Michigan Regional Purchase Agreement                      Page 3 of 6

         11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
             possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
             cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
             that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
             expended through normal use. Exceptions:

         12. Assessments (choose one):
             If the Property is subject to any assessments,
                  Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
                  of any installment arrangements), except for any fees that are required to connect to public utilities.
                  Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
                  and pay all other installments of such assessments.
         13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all
             taxes billed after those addressed below.
              Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
              tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
              Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
              property is transferred.
                  No proration.           (Choose one):
                         Buyer                Seller    will pay taxes billed summer                           (year);
                         Buyer                Seller    will pay taxes billed winter                           (year);
                  Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
                  necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
                  and prorated to the date of closing with Seller paying for January 1 through the day before closing.
                  Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one):         advance.          arrears.
                  Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
                  year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
                  down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:

         14. Well/Septic: Within ten (10) days after the Effective Date, (choose one)  Seller or     Buyer will arrange for, at their own expense,
             an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
             septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
             other local governmental authority, if applicable) protocol.
              If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
              within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
              refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
              to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-
              is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
              resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
              termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
              Buyer will proceed to closing according to the terms and conditions of this Agreement.
              Other:
                                                                                             na



         15. Inspections & Investigations:
              Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
              Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
              Buyer’s responsibility and expense.
              Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
              and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
              Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
              All inspections and investigations will be completed within ____ days after the Effective Date. If the results of Buyer’s inspections and
              investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate
              this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those
              unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be


                                                         1320 Spring Street, Muskegon, MI 49442                                                            12/11/2022
                                                 Subject Property Address/Description                                                                        Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
         Revision Date 8/2022                                                                         WF                  AF            Buyer’s Initials          LM             Seller’s Initials
                                                                                                     12/12/22           12/11/22                                 12/13/22


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                                                                                                                     West Michigan Regional Purchase Agreement                      Page 4 of 6

            deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal
            or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s
            receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a
            refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will
            be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this
            Agreement.
                Buyer has waived all rights under this Inspections & Investigations paragraph.
            Exceptions:
        16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
            ordinances, if applicable.
        17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
            other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
            ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
            Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
            report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
            not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
             If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
             either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
             those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
             deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
             proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
             after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
             shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
             period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
             of this Agreement. Exceptions:

        18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
            and the location of improvements thereon.
                 Buyer or     Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
              corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
              the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
              would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
              within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
              Deposit.
                No survey. Buyer has waived all rights under this paragraph.
             When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
             thereon. Exceptions:
             Builders existing survey.
        19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
            additional protection and benefit to the parties. Exceptions:

        20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
            assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
            owns the Property through the day before closing.
        21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
                        03/31/2023            . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
            title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
            this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
            prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
            will pay the entire closing fee. Exceptions:

        22. Pre-Closing Walk-Through: Buyer (choose one)                     reserves        waives the right to conduct a final walk-through of the
            Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
            a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
            personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
            requested corrective action.
        23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
            delivered to Buyer, subject to rights of present tenants, if any.
                At the completion of the closing of the sale.
                At                a.m.     p.m. on the                     day after completion of the closing of the sale, during which time Seller
                                                         1320 Spring Street, Muskegon, MI 49442                                                            12/11/2022
                                                 Subject Property Address/Description                                                                        Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
                                                                                                      WF                  AF            Buyer’s Initials          LM             Seller’s Initials
         Revision Date 8/2022                                                                        12/12/22           12/11/22                                 12/13/22
                                                                                                   7:26 AM EST        2:17 PM EST                              5:20 PM EST

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                                                                                                                     West Michigan Regional Purchase Agreement                      Page 5 of 6
             will have the privilege to occupy the Property and hereby agrees to pay Buyer $ na                                          as an occupancy
             fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
             If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
             liquidated damages $                        per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
             from the Property.
             If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and
             mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any
             portion of the Property will be Seller’s responsibility and expense.
             On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
             personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
             all utilities, and shall deliver all keys to Buyer. Exceptions:

        24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until                               5pm                       (time) on
                         12/12/2022              (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
            Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $                  $1000
            shall be submitted to                                       Transnation Title                                  (insert name of broker, title
            company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
            Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
            Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
            waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
            than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement
            and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding
            the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If
            Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed
            to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be
            negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller.
            In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as
            determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation,
            and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action
            instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement
            conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
        25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
            advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
            legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
            Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
            sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
            made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
            transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
            separately signed by Seller.
        26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
            to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
            Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
        27. Other Provisions:
             Paragraph 8- will provide a quit claim deed vs a warranty deed.

             1320 Spring shall be set up at a model home til 3/15/2023. Buyer to walk through for final touch up requests with builder.




        28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
            oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
            by Buyer and Seller and attached to this Agreement.
        29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
            amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
            of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
            equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
            required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
        30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic

                                                         1320 Spring Street, Muskegon, MI 49442                                                            12/11/2022
                                                 Subject Property Address/Description                                                                        Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
                                                                                                      WF                  AF            Buyer’s Initials          LM             Seller’s Initials
         Revision Date 8/2022                                                                        12/12/22           12/11/22                                 12/13/22
                                                                                                   7:26 AM EST        2:17 PM EST                              5:20 PM EST

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                                                                                                                         West Michigan Regional Purchase Agreement                                       Page 6 of 6
             communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
             license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
             Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
             Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
             to steal funds or use your identity.
        31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.

             Buyer 1 Address 190 2nd St, St Ignace, MI 49781                                                X        William Fraser                                                                            Buyer
                                                                                                                                                                                       dotloop verified
                                                                                                                                                                                       12/12/22 7:26 AM EST
                                                                                                                                                                                       TIAP-TQTL-SEQ7-SIXH




             Buyer 1 Phone: (Res.) 906-430-0090                         (Bus.)                                           William Fraser
                                                                                                                                Print name as you want it to appear on documents.

              Buyer 2 Address 190 2nd St, St Ignace, MI 49781                                               X       Angela Fraser                                                                              Buyer
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             Buyer 2 Phone: (Res.) 906-430-2056                         (Bus.)                                           Angela Fraser
                                                                                                                                Print name as you want it to appear on documents.


        32. Seller’s Response: The above offer is approved:                         As written.    As written except:
              Earnest Deposit to be $3000 made to Transnation Title.




             Counteroffer, if any, expires              12/13/2022               , at        5pm          (time). Seller has the right to withdraw this
             counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
             33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
             disclosed in the Seller’s Disclosure Statement dated                          (choose one):   Yes      No. Seller agrees to inform
             Buyer in writing of any changes in the content of the disclosure statement prior to closing.
        34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
            relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
            the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
            is available from the respective agents via the West Michigan REALTOR® Boards.
       35. Listing Office Address: 255 W Western Ave, Muskegon, MI 49440                                                     Listing Broker License # 6505429509
             Listing Agent Name: Mariana Murillo VanDam                                                                       Listing Agent License # 6506015435

        36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
            response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
            below.
            X (Seller’s Signature, Date, Time): LeighAnn Mikesell
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                         LeighAnn Mikesell                                                                               Is Seller a U.S. Citizen or Resident Alien?                              Yes                 No*
                                Print name as you want it to appear on documents.

             X (Seller’s Signature, Date, Time):
                                                                                                                         Is Seller a U.S. Citizen or Resident Alien?                              Yes                 No*
                                Print name as you want it to appear on documents.
             Seller’s Address:                                                              Seller’s Phone (Res.)                                                (Bus)
                 * If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.


        37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
            constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.


             X (Buyer’s Signature, Date, Time):

             X (Buyer’s Signature, Date, Time):

        38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.
             X (Seller’s Signature, Date, Time):                LeighAnn Mikesell
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             X (Seller’s Signature, Date, Time):

                                                         1320 Spring Street, Muskegon, MI 49442                                                                12/11/2022
                                                 Subject Property Address/Description                                                                            Date                                    Time
         ©Copyright, West Michigan REALTOR® Associations
         Revision Date 8/2022                                                                             WF                  AF            Buyer’s Initials          LM                           Seller’s Initials
                                                                                                         12/12/22           12/11/22                                 12/13/22


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                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023                            Title: Sale of 750 Leonard
                                                                     Avenue

Submitted By: LeighAnn Mikesell                                      Department: City Manager

Brief Summary: Staff is requesting approval of a purchase agreement for 750 Leonard Avenue.



Detailed Summary & Background:
750 Leonard Avenue was constructed through the agreement with Rudy Briggs to construct infill
housing with ARPA funding. The offer is for full asking price with no seller concessions.

Goal/Focus Area/Action Item Addressed:
Create an environment that effectively attracts new residents and retains existing residents by
filling existing employment gaps, attracting new and diverse businesses to the city, and expanding
access to a variety of high-quality housing options in Muskegon. Diverse housing types

Amount Requested: N/A                                Amount Budgeted: N/A



Fund(s) or Account(s):                               Fund(s) or Account(s):

Recommended Motion: To approve the purchase agreement for 750 Leonard Avenue and
authorize the City Manager Jonathan Seyferth or Deputy City Manager LeighAnn Mikesell to sign.



Approvals:                                                           Guest(s) Invited / Presenting
Immediate Division Head         Information Technology
Other Division Heads            Communication                        Yes

Legal Review                                                         No


For City Clerk Use Only:
Commission Action:




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                                                         WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
                                                                                                                                                                                 #
         DATE:                       12/08/2022                   ,                         (time)                                                   MLS #                  22045853

         SELLING OFFICE:                       Five Star Real Estate            BROKER LIC.#:        6505276328                     REALTOR® PHONE:                         231-349-2696

         LISTING OFFICE:                    Terri L Kitchen Realtor            REALTOR® PHONE:                       231-760-9015

        1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
            counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
            in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference
            to "time" refers to local time.
         2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
             Real Estate Agency Relationships. The selling licensee is acting as (choose one):
                  Agent/Subagent of Seller             Buyer’s Agent          Dual Agent (with written, informed consent of both Buyer and Seller)
                  Transaction Coordinator
              Primary Selling Agent Name:                              Karrie Harris                 Email: [email protected] Lic.#:                              6501313299

             Alternate Selling Agent Name:                                             Email:                                   Lic.#:
         3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
                 Buyer has received the Seller’s Disclosure Statement, dated                              . Seller certifies to Buyer that the Property
                 is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any
                 changes in the content of the disclosure statement.
                 Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
                 of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
                 Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
                 registered mail. Exceptions:                                          N/A NEW CONSTRUCTION
                 Seller is exempt from the requirements of the Seller Disclosure Act.
        4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
            and will be an integral part of this Agreement.
        5. Property Description: Buyer offers to buy the property located in the         City   Village Township of                 Muskegon          ,
            County of                  Muskegon                , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
                                                                         750 Leonard Avenue, Muskegon, MI 49442
             with the following legal description and tax parcel ID numbers:
               Legal: LOT 7, EXCEPT THE WEST 30.44 FEET, LOT 8 ANDTHE WEST 5.33 FEET OF LOT 9 BLOCK 3, GUNNS SUBDIVISION OF PART OF BLOCK 2,
                                                      CITY OF MUSKEGON, MUSKEGON COUNTY, MICHIGAN

            PP#                                                                        6124405003000800                                                                                             .
           The following paragraph applies only if the Premises include unplatted land:
           Seller agrees to grant Buyer at closing the right to make (insert number) NA                  division(s) under Section 108(2), (3), and
           (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
           with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
           number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
           will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
           before                                  , of the proposed division to create the Premises.
        6. Purchase Price: Buyer offers to buy the Property for the sum of $                                   220,000.00
                                                            two hundred twenty thousand                                                    U.S. Dollars
        7. Seller Concessions, if any:                                                                               0


        8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
           SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
           are currently available to Buyer in cash or an equally liquid equivalent.
            If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
            three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
            receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
                  CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
                  verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
                  Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
                  at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
                  arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
                  NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
                  obtain a FHA MSHDA                      type 30              (year) mortgage in the amount of 97           % of the Purchase Price
                  bearing interest at a rate not to exceed 7              % per annum (rate at time of loan application), on or before the date the sale is
                  to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
                  process the application, within 5                  days after the Effective Date, not to impair Buyers’ credit after the date such loan if
                  offered.      Seller    Buyer will agree to pay an amount not to exceed $                         representing repairs required as a
                  condition of financing. Buyer         agrees      does not agree322to authorize Buyer’s Agent/Dual Agent to obtain information from
         ©Copyright, West Michigan REALTOR® Associations
         Page 1 of 6 Rev. Date 8/2022                                                                     JL                BS          Buyer’s Initials        LM                   Seller’s Initials
                                                                                                         12/08/22          12/08/22                            12/15/22
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                                                                                                                       West Michigan Regional Purchase Agreement                    Page 2 of 6
                  Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
                  Exceptions:

                   SELLER FINANCING (choose one of the following):                    CONTRACT or                          PURCHASE MONEY MORTGAGE
                  In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
                  credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
                  Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
                  within 48 hours. Seller is advised to seek professional advice regarding the credit report.
                  $                           upon execution and delivery of a
                  form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
                  will be payable in monthly installments of $                            or more including interest at                    % per annum,
                  interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
                  will become due and payable                            months after closing. Any appraisal required by Buyer shall be arranged and
                  paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:


                   EQUITY (choose one of the following):         Formal Assumption or       Informal Assumption
                   Upon execution and delivery of:       Warranty Deed subject to existing mortgage OR             Assignment of Vendee Interest
                   in Land Contract, Buyer to pay the difference (approximately $                             ) between the Purchase Price above
                   provided and the unpaid balance (approximately $                             ) upon said mortgage or land contract, which Buyer
                   agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
                   taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
                   (10) days after the Effective Date of this Agreement. Exceptions:

                   OTHER:


         9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
                   IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
                   IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:

                   A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
                   or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
                   writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
                   Money Deposit.
                   IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
                   of a sale or exchange of Buyer’s property located at
                                                         on or before                                      . Seller will have the right to continue to
                   market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
                   thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
                   price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
                   promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:

         10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
             improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
             following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
             bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
             disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
             shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
             pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
             heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
             heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
             rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
             backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
             detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
             opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
                                                                  Stove, refrigerator, microwave, dishwasher, central air




              but does not include:
                                                                                Washer and DryerN
                                                     750 Leonard Avenue, Muskegon, MI 49442
                                                 Subject Property Address/Description                                                                        Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
         Revision Date 8/2022                                                                            JL                BS             Buyer’s Initials        LM             Seller’s Initials
                                                                                                       12/08/22           12/08/22                               12/15/22


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                                                                                                                       West Michigan Regional Purchase Agreement                    Page 3 of 6

         11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
             possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
             cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
             that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
             expended through normal use. Exceptions:
                                                                                        N/A
         12. Assessments (choose one):
             If the Property is subject to any assessments,
                 Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
                 of any installment arrangements), except for any fees that are required to connect to public utilities.
                 Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
                 and pay all other installments of such assessments.
         13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all
             taxes billed after those addressed below.
              Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
              tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
              Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
              property is transferred.
                 No proration.           (Choose one):
                        Buyer                Seller    will pay taxes billed summer                              (year);
                        Buyer                Seller    will pay taxes billed winter                              (year);
                 Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
                 necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
                 and prorated to the date of closing with Seller paying for January 1 through the day before closing.
                 Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one):         advance.          arrears.
                 Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
                 year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
                 down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:

         14. Well/Septic: Within ten (10) days after the Effective Date, (choose one)  Seller or     Buyer will arrange for, at their own expense,
             an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
             septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
             other local governmental authority, if applicable) protocol.
             If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
             within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
             refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
             to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-
             is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
             resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
             termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
             Buyer will proceed to closing according to the terms and conditions of this Agreement.
              Other:
                                                                                    City Services



         15. Inspections & Investigations:
              Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
              Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
              Buyer’s responsibility and expense.
              Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
              and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
              Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
              All inspections and investigations will be completed within ____ days after the Effective Date. If the results of Buyer’s inspections and
              investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate
              this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those
              unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be


                                                     750 Leonard Avenue, Muskegon, MI 49442
                                                 Subject Property Address/Description                                                                        Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
         Revision Date 8/2022                                                                            JL                BS             Buyer’s Initials        LM             Seller’s Initials
                                                                                                       12/08/22           12/08/22                               12/15/22


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                                                                                                                 West Michigan Regional Purchase Agreement                    Page 4 of 6

            deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal
            or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s
            receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a
            refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will
            be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this
            Agreement.
                Buyer has waived all rights under this Inspections & Investigations paragraph.
            Exceptions:
        16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
            ordinances, if applicable.
        17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
            other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
            ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
            Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
            report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
            not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
             If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
             either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
             those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
             deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
             proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
             after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
             shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
             period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
             of this Agreement. Exceptions:

        18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
            and the location of improvements thereon.
                 Buyer or     Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
              corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
              the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
              would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
              within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
              Deposit.
                No survey. Buyer has waived all rights under this paragraph.
             When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
             thereon. Exceptions:

        19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
            additional protection and benefit to the parties. Exceptions:

        20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
            assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
            owns the Property through the day before closing.
        21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
                        02/28/2023            . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
            title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
            this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
            prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
            will pay the entire closing fee. Exceptions:

        22. Pre-Closing Walk-Through: Buyer (choose one)                     reserves        waives the right to conduct a final walk-through of the
            Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
            a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
            personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
            requested corrective action.
        23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
            delivered to Buyer, subject to rights of present tenants, if any.
                At the completion of the closing of the sale.
                At                a.m.     p.m. on the                     day after completion of the closing of the sale, during which time Seller
                                                     750 Leonard Avenue, Muskegon, MI 49442
                                                 Subject Property Address/Description                                                                  Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
                                                                                                   JL                BS             Buyer’s Initials        LM             Seller’s Initials
         Revision Date 8/2022                                                                    12/08/22           12/08/22                               12/15/22
                                                                                               4:10 PM EST        11:39 AM EST                           12:01 PM EST

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                                                                                                                 West Michigan Regional Purchase Agreement                    Page 5 of 6
             will have the privilege to occupy the Property and hereby agrees to pay Buyer $                                             as an occupancy
             fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
             If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
             liquidated damages $                        per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
             from the Property.
             If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and
             mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any
             portion of the Property will be Seller’s responsibility and expense.
             On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
             personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
             all utilities, and shall deliver all keys to Buyer. Exceptions:

        24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until                                                         (time) on
                                                 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
            Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ 500.00 24/hr accep
            shall be submitted to                                      Five Star Real Estate                               (insert name of broker, title
            company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
            Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
            Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
            waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
            than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement
            and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding
            the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If
            Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed
            to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be
            negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller.
            In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as
            determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation,
            and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action
            instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement
            conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
        25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
            advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
            legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
            Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
            sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
            made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
            transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
            separately signed by Seller.
        26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
            to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
            Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
        27. Other Provisions:




        28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
            oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
            by Buyer and Seller and attached to this Agreement.
        29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
            amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
            of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
            equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
            required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
        30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic

                                                     750 Leonard Avenue, Muskegon, MI 49442
                                                 Subject Property Address/Description                                                                  Date                   Time
         ©Copyright, West Michigan REALTOR® Associations
                                                                                                   JL                BS             Buyer’s Initials        LM             Seller’s Initials
         Revision Date 8/2022                                                                    12/08/22           12/08/22                               12/15/22
                                                                                               4:10 PM EST        11:39 AM EST                           12:01 PM EST

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                                                                                                                      West Michigan Regional Purchase Agreement                                          Page 6 of 6
             communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
             license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
             Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
             Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
             to steal funds or use your identity.
        31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.

             Buyer 1 Address                                                                             X        Justin Lafever                                                                           Buyer
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             Buyer 1 Phone: (Res.)                                 (Bus.)                                             Justin Lafever
                                                                                                                             Print name as you want it to appear on documents.

             Buyer 2 Address                                                                             X       Brittany Shepard                                                                          Buyer
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             Buyer 2 Phone: (Res.)                                 (Bus.)                                             Brittany Shepard
                                                                                                                             Print name as you want it to appear on documents.


        32. Seller’s Response: The above offer is approved:                   As written.      As written except:




            Counteroffer, if any, expires                                       , at                     (time). Seller has the right to withdraw this
            counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
             33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
             disclosed in the Seller’s Disclosure Statement dated                          (choose one):   Yes      No. Seller agrees to inform
             Buyer in writing of any changes in the content of the disclosure statement prior to closing.
        34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
            relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
            the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
            is available from the respective agents via the West Michigan REALTOR® Boards.
       35. Listing Office Address: 2340 Glade Street                                                                      Listing Broker License #
            Listing Agent Name: Terri Kitchen                                                                              Listing Agent License # 6504312334

        36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
            response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
            below.
            X (Seller’s Signature, Date, Time): Leighann Mikesell
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                                                                                                                      Is Seller a U.S. Citizen or Resident Alien?                               Yes               No*
                               Print name as you want it to appear on documents.

            X (Seller’s Signature, Date, Time):
                                                                                                                      Is Seller a U.S. Citizen or Resident Alien?                               Yes               No*
                                Print name as you want it to appear on documents.
            Seller’s Address:                                                           Seller’s Phone (Res.)                                               (Bus)
                 * If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.


        37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
            constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.


            X (Buyer’s Signature, Date, Time):

            X (Buyer’s Signature, Date, Time):

        38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.
            X (Seller’s Signature, Date, Time):

            X (Seller’s Signature, Date, Time):

                                                     750 Leonard Avenue, Muskegon, MI 49442
                                                 Subject Property Address/Description                                                                       Date                                         Time
         ©Copyright, West Michigan REALTOR® Associations
         Revision Date 8/2022                                                                           JL                BS             Buyer’s Initials        LM                              Seller’s Initials
                                                                                                      12/08/22           12/08/22                               12/15/22


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                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: January 10, 2023                            Title: Sale of 1499 Hoyt
                                                                     Street

Submitted By: LeighAnn Mikesell                                      Department: City Manager

Brief Summary: Staff is requesting approval of a new purchase agreement for 1499 Hoyt Street.



Detailed Summary & Background:
1499 Hoyt Street was constructed through the agreement with Dave Dusendang to construct infill
housing with ARPA funding. With seller concessions, the offer equates to the list price.
An earlier agreement has been rescinded.

Goal/Focus Area/Action Item Addressed:
Create an environment that effectively attracts new residents and retains existing residents by
filling existing employment gaps, attracting new and diverse businesses to the city, and expanding
access to a variety of high-quality housing options in Muskegon. Diverse housing types

Amount Requested: N/A                                Amount Budgeted: N/A



Fund(s) or Account(s):                               Fund(s) or Account(s):

Recommended Motion: To approve the purchase agreement for 1499 Hoyt Street and authorize
the City Manager Jonathan Seyferth or Deputy City Manager LeighAnn Mikesell to sign.



Approvals:                                                           Guest(s) Invited / Presenting
Immediate Division Head         Information Technology
Other Division Heads            Communication                        Yes

Legal Review                                                         No


For City Clerk Use Only:
Commission Action:




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                                                         WEST MICHIGAN REGIONAL PURCHASE AGREEMENT
                                                                                                                                                         #
        DATE:                        12/09/2022                     ,       4:00 PM          (time)                                      MLS #     22025427

        SELLING OFFICE:                           Pinnacle Realty               BROKER LIC.#:         6505392630          REALTOR® PHONE:          2313275332

        LISTING OFFICE:                       West Urban Realty                REALTOR® PHONE:                        6163662459

        1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any
            counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days"
            in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference
            to "time" refers to local time.
         2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding
             Real Estate Agency Relationships. The selling licensee is acting as (choose one):
                  Agent/Subagent of Seller             Buyer’s Agent          Dual Agent (with written, informed consent of both Buyer and Seller)
                  Transaction Coordinator
             Primary Selling Agent Name:                                 Jay Kilgo                    Email: [email protected] Lic.#:        6504431414

             Alternate Selling Agent Name:                                             Email:                                   Lic.#:
         3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.)
                 Buyer has received the Seller’s Disclosure Statement, dated                              . Seller certifies to Buyer that the Property
                 is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any
                 changes in the content of the disclosure statement.
                 Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt
                 of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this
                 Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by
                 registered mail. Exceptions:                                              Home Warrenty
                 Seller is exempt from the requirements of the Seller Disclosure Act.
        4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached
            and will be an integral part of this Agreement.
        5. Property Description: Buyer offers to buy the property located in the        City    Village Township of                 Muskegon          ,
            County of                  Muskegon                , Michigan, commonly known as (insert mailing address: street/city/state/zip code)
                                                                        1499 Hoyt Street Street, Muskegon, MI 49442
             with the following legal description and tax parcel ID numbers:
                                   DIST:24 SUBD:CITY OF MUSKEGON REVISED PLAT (OF 1903) SEC/TWN/RNG/MER:SEC 05 TWN 9N RNG 17W C


            PP#                                                                       61-24-205-280-0012-00                                                                 .
           The following paragraph applies only if the Premises include unplatted land:
           Seller agrees to grant Buyer at closing the right to make (insert number)  ALL                division(s) under Section 108(2), (3), and
           (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays
           with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the
           number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale
           will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or
           before            01/13/2023            , of the proposed division to create the Premises.
        6. Purchase Price: Buyer offers to buy the Property for the sum of $                                    $189,900
                                                  one hundred eighty-nine thousand nine hundred                                            U.S. Dollars
        7. Seller Concessions, if any:                    Seller to contribute $10,000 of purchase price towards buyers closing costs, discount points and prepaids


        8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.)
           SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below
           are currently available to Buyer in cash or an equally liquid equivalent.
            If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within
            three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall
            receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price.
                  CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent
                  verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or
                  Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement
                  at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be
                  arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement.
                  NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to
                  obtain a FHA                            type 30              (year) mortgage in the amount of 96.5         % of the Purchase Price
                  bearing interest at a rate not to exceed 8              % per annum (rate at time of loan application), on or before the date the sale is
                  to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to
                  process the application, within 3                  days after the Effective Date, not to impair Buyers’ credit after the date such loan if
                  offered.      Seller    Buyer will agree to pay an amount not to exceed $ 0                       representing repairs required as a
                  condition of financing. Buyer         agrees      does not agree329to authorize Buyer’s Agent/Dual Agent to obtain information from
        ©Copyright, West Michigan REALTOR® Associations
        Page 1 of 6 Rev. Date 8/2022                                                                      BD
                                                                                                          12/12/22
                                                                                                        4:41 PM EST
                                                                                                                            Buyer’s Initials       LM        Seller’s Initials
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                                                                                                                    West Michigan Regional Purchase Agreement                Page 2 of 6
                  Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent.
                  Exceptions:

                  SELLER FINANCING (choose one of the following):                     CONTRACT or                     PURCHASE MONEY MORTGAGE
                  In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the
                  credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if
                  Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer
                  within 48 hours. Seller is advised to seek professional advice regarding the credit report.
                  $                           upon execution and delivery of a
                  form (name or type of form and revision date), a copy of which is attached, wherein the balance of $
                  will be payable in monthly installments of $                            or more including interest at                    % per annum,
                  interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance
                  will become due and payable                            months after closing. Any appraisal required by Buyer shall be arranged and
                  paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions:


                  EQUITY (choose one of the following):         Formal Assumption or       Informal Assumption
                  Upon execution and delivery of:       Warranty Deed subject to existing mortgage OR             Assignment of Vendee Interest
                  in Land Contract, Buyer to pay the difference (approximately $                             ) between the Purchase Price above
                  provided and the unpaid balance (approximately $                             ) upon said mortgage or land contract, which Buyer
                  agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future
                  taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten
                  (10) days after the Effective Date of this Agreement. Exceptions:

                  OTHER:


        9. Contingencies: Buyer’s obligation to consummate this transaction (choose one):
                  IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer.
                  IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at:

                  A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale
                  or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in
                  writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest
                  Money Deposit.
                  IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing
                  of a sale or exchange of Buyer’s property located at
                                                        on or before                                      . Seller will have the right to continue to
                  market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy
                  thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such
                  price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified
                  promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions:

        10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All
            improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the
            following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and
            bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage
            disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached
            shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and
            pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on
            heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid
            heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete
            rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball
            backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars;
            detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door
            opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:
                                                               Dishwasher; Microwave; Oven; Refrigerator, Washer & Dyer




             but does not include:


                                                   1499 Hoyt Street Street, Muskegon, MI 49442                                                 12/12/2022
                                                Subject Property Address/Description                                                                Date                     Time
        ©Copyright, West Michigan REALTOR® Associations
        Revision Date 8/2022                                                                         BD                     Buyer’s Initials                              Seller’s Initials
                                                                                                                                                            LM
                                                                                                    12/12/22


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                                                                                                                    West Michigan Regional Purchase Agreement         Page 3 of 6

        11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of
            possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and
            cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except
            that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is
            expended through normal use. Exceptions:
                                                                                        NONE
        12. Assessments (choose one):
            If the Property is subject to any assessments,
                 Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless
                 of any installment arrangements), except for any fees that are required to connect to public utilities.
                 Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume
                 and pay all other installments of such assessments.
        13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all
            taxes billed after those addressed below.
             Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property
             tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the
             Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when
             property is transferred.
                 No proration.          (Choose one):
                        Buyer               Seller    will pay taxes billed summer                            (year);
                        Buyer               Seller    will pay taxes billed winter                            (year);
                 Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if
                 necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment
                 and prorated to the date of closing with Seller paying for January 1 through the day before closing.
                 Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one):         advance.          arrears.
                 Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal
                 year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken
                 down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions:
                                                                                          NONE
        14. Well/Septic: Within ten (10) days after the Effective Date, (choose one)  Seller or     Buyer will arrange for, at their own expense,
            an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and
            septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or
            other local governmental authority, if applicable) protocol.
             If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may,
             within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a
             refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails
             to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-
             is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable
             resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of
             termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract,
             Buyer will proceed to closing according to the terms and conditions of this Agreement.
             Other:
                                                                                          N/A



        15. Inspections & Investigations:
             Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at
             Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be
             Buyer’s responsibility and expense.
             Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances
             and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the
             Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone.
             All inspections and investigations will be completed within 7____ days after the Effective Date. If the results of Buyer’s inspections and
             investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate
             this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those
             unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be


                                                   1499 Hoyt Street Street, Muskegon, MI 49442                                                 12/12/2022
                                                Subject Property Address/Description                                                             Date                 Time
        ©Copyright, West Michigan REALTOR® Associations
        Revision Date 8/2022                                                                         BD
                                                                                                    12/12/22
                                                                                                                            Buyer’s Initials
                                                                                                                                                    LM             Seller’s Initials

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                                                                                                                    West Michigan Regional Purchase Agreement                 Page 4 of 6

            deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal
            or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s
            receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a
            refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will
            be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this
            Agreement.
                Buyer has waived all rights under this Inspections & Investigations paragraph.
            Exceptions:NONE
        16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector
            ordinances, if applicable.
        17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and
            other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage
            ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at
            Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status
            report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is
            not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided.
             If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller,
             either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct
             those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be
             deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s
             proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days
             after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and
             shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day
             period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions
             of this Agreement. Exceptions:
             NONE
        18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property
            and the location of improvements thereon.
                 Buyer or     Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron
              corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of
              the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which
              would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may,
              within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money
              Deposit.
                No survey. Buyer has waived all rights under this paragraph.
             When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements
             thereon. Exceptions:
             NONE
        19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide
            additional protection and benefit to the parties. Exceptions:
             Seller/Builder to provide 1 year Home Warranty on the New construction house
        20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien
            assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller
            owns the Property through the day before closing.
        21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than
                        01/13/2023            . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of
            title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During
            this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been
            prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller
            will pay the entire closing fee. Exceptions:

        22. Pre-Closing Walk-Through: Buyer (choose one)                     reserves        waives the right to conduct a final walk-through of the
            Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in
            a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included
            personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s
            requested corrective action.
        23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be
            delivered to Buyer, subject to rights of present tenants, if any.
                At the completion of the closing of the sale.
                At                a.m.     p.m. on the                     day after completion of the closing of the sale, during which time Seller
                                                   1499 Hoyt Street Street, Muskegon, MI 49442                                                 12/12/2022
                                                Subject Property Address/Description                                                             Date                         Time
        ©Copyright, West Michigan REALTOR® Associations
                                                                                                     BD                     Buyer’s Initials                               Seller’s Initials
        Revision Date 8/2022
                                                                                                                                                            LM
                                                                                                    12/12/22
                                                                                                  4:41 PM EST

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                                                                                                                    West Michigan Regional Purchase Agreement                 Page 5 of 6
             will have the privilege to occupy the Property and hereby agrees to pay Buyer $ 0                                           as an occupancy
             fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds.
             If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as
             liquidated damages $ 50                     per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller
             from the Property.
             If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and
             mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any
             portion of the Property will be Seller’s responsibility and expense.
             On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all
             personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on
             all utilities, and shall deliver all keys to Buyer. Exceptions:

        24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until                              6 PM                       (time) on
                         12/13/2022              (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by
            Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $                  $1,000
            shall be submitted to                                   Transnation Title Company                              (insert name of broker, title
            company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest
            Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this
            Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller
            waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other
            than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement
            and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding
            the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If
            Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed
            to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be
            negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller.
            In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as
            determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation,
            and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action
            instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement
            conflict with this paragraph, then the terms and conditions of the escrow agreement shall control.
        25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional
            advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the
            legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to
            Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the
            sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement
            made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale
            transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement
            separately signed by Seller.
        26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect
            to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing
            Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business.
        27. Other Provisions:
             Seller to Pay Buyers agent Commission Stated in the MLS 3%




        28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no
            oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed
            by Buyer and Seller and attached to this Agreement.
        29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any
            amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence
            of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal
            equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s)
            required or permitted under this Agreement may also be transmitted by facsimile or other electronic means.
        30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic

                                                   1499 Hoyt Street Street, Muskegon, MI 49442                                                 12/12/2022
                                                Subject Property Address/Description                                                             Date                         Time
        ©Copyright, West Michigan REALTOR® Associations
                                                                                                     BD                     Buyer’s Initials                               Seller’s Initials
        Revision Date 8/2022
                                                                                       333
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                                                                                                                                                           12/14/22
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                                dtlp.us/8HwW-pSBs-p9qp



                                                                                                                               West Michigan Regional Purchase Agreement                          Page 6 of 6
             communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’
             license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the
             Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with
             Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme
             to steal funds or use your identity.
        31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer.

             Buyer 1 Address                                                                                      X        BRYTNEY DUNCAN                                                          Buyer
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             Buyer 1 Phone: (Res.) (231) 557-1409                     (Bus.)                                                   BRYTNEY DUNCAN
                                                                                                                                  Print name as you want it to appear on documents.

             Buyer 2 Address                                                                                      X                                                                                Buyer
             Buyer 2 Phone: (Res.)                                    (Bus.)
                                                                                                                                  Print name as you want it to appear on documents.


        32. Seller’s Response: The above offer is approved:                          As written.         As written except:


                                                     Seller to provide a quit claim deed vs a warranty
                                                     deed
                                                     Builder warranty started the day the city of
                                                     Muskegon gave certificate of occupancy.



            Counteroffer, if any, expires                                       , at                     (time). Seller has the right to withdraw this
            counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance.
             33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as
             disclosed in the Seller’s Disclosure Statement dated                          (choose one):   Yes      No. Seller agrees to inform
             Buyer in writing of any changes in the content of the disclosure statement prior to closing.
        34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not
            relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by
            the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form
            is available from the respective agents via the West Michigan REALTOR® Boards.
       35. Listing Office Address: 255 W Western Ave, Muskegon, MI 49440                                                         Listing Broker License #
            Listing Agent Name: Mariana Murillo VanDam                                                                            Listing Agent License # Mariana Murillo VanDam

        36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s
            response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required
            below.
                                                                                   LeighAnn Mikesell
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            X (Seller’s Signature, Date, Time):                                                                    4QUW-HMS5-NXWZ-SJNF


                                                                                                                               Is Seller a U.S. Citizen or Resident Alien?               Yes           No*
                               Print name as LeighAnn
                                             you want it to appear on documents.
                                                         Mikesell

            X (Seller’s Signature, Date, Time):
                                                                                                                               Is Seller a U.S. Citizen or Resident Alien?               Yes           No*
                               Print name as you want it to appear on documents.
            Seller’s Address:                                                                  Seller’s Phone (Res.)                                           (Bus)
                * If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice.


        37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response
            constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged.


            X (Buyer’s Signature, Date, Time):

            X (Buyer’s Signature, Date, Time):

        38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.
            X (Seller’s Signature, Date, Time):
                                                                                  LeighAnn Mikesell
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            X (Seller’s Signature, Date, Time):                                                                                       QRYV-CWAO-GQ6E-LTCW



                                                   1499 Hoyt Street Street, Muskegon, MI 49442                                                               12/12/2022
                                                Subject Property Address/Description                                                                           Date                               Time
        ©Copyright, West Michigan REALTOR® Associations
        Revision Date 8/2022                                                                                    BD                     Buyer’s Initials                                   Seller’s Initials

                                                                                                                                                                      LM
                                                                                                               12/12/22


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                                                                                                                                                                  dotloop verified
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: January 10, 2023                             Title: Public Hearing
                                                                      Brownfield Plan Amendment,
                                                                      1st Amendment, Adelaide
                                                                      Pointe QOZB, LLC

Submitted By: Contessa Hood                                           Department: City Manager

Brief Summary: Approval for Brownfield Plan Amendment,1st Amendment for Adelaide Pointe
QOZB, LLC (Adelaide Pointe Project) and to consider the attached resolution.

Detailed Summary & Background:
Adelaide Pointe QOZB, LLC is seeking a Brownfield Plan Amendment (1st Amendment) for the
Adelaide Pointe Project; a 35-acre mixed use waterfront development project including winter boat
storage, marina space, In/Out forklift boat storage, commercial/retail, and up to 400 housing units.
The initial Brownfield Plan Amendment was approved by the BRA on Oct 12, 2021 and City
Commission on Oct 26, 2021.
In Dec. 2020, the developer’s environmental consultant (Fishbeck) completed a Phase II
Environmental Site Assessment (ESA) and a Baseline Environmental Assessment. This plan
includes $12,404,400 in total EGLE and non-environmental local only eligible costs as well as
$24,379,064 in total MSF eligible costs. The developer is seeking to add state school tax capture
for reimbursement of costs related to Michigan Strategic Fund (MSF) eligible activities during the
first three immediate phases of redevelopment.
The City proposed to use a bond proceed of $8,101,388 to pay eligible site preparation and public
infrastructure costs that include public roadways, a reconfiguration of West Western Ave, as well
as a water main, sanitary sewer and storm sewer utilities. The local-only EGLE eligible costs are
$3,250,000 which include due care activities - $500,000 vapor intrusion mitigation, $1,500,000 soil
capping, $250,000 dewatering and $1,000,000 for the dredging and removal of soil contaminants.
Local-only MSF eligible costs are $5,810,000 which include $500,000 demolition, $250,000
asbestos abatement, $3,160,000 site preparation.
Capture of tax increment revenues for City reimbursement is anticipated to commence in 2023 and
end in 2031. Developer reimbursement will follow with an estimated start date of 2023. The
anticipated end date for Developer reimbursement is 2046. It is projected that the Plan
Amendment will extend 29 years, which assumes five years of additional capture of tax increment
revenues for deposit into a Local Brownfield Revolving Fund, if available.
The contingency percentage, interest request, and the annual administrative fee will remain the
same as previously stated on Oct. 26, 2021 during the scheduled City Commission meeting
approving the initial Brownfield Plan Amendment. The interest is included for all accrued and
unreimbursed eligible activities on a yearly basis. The BRA approved the revised BPA on Dec. 13,
2022 and recommends the approval of the BPA by the Muskegon City Commission on Jan. 10,
2022. The Muskegon City Commission and BRA approved the Brownfield Development &
Reimbursement Agreement, on Dec. 13, 2022. A signed copy from the Muskegon City
Commission was not able to be secured by the submission date for the 1/10 City Commission
meeting. Staff will be sure to send the signed DRA to the city clerk once the document is available.
                                                335
Goal/Focus Area/Action Item Addressed:
Focus Area: improved access to the waterfront, blight cleanup, progress toward completion of
ongoing economic development projects
Action Item 2022-2.6: Complete Adelaide Pointe public improvements

Amount Requested: N/A                               Amount Budgeted: N/A

Fund(s) or Account(s): N/A                          Fund(s) or Account(s): N/A

Recommended Motion: Motion to close the public hearing and to approve the resolution for the
Brownfield Plan Amendment, 1st Amendment for the Adelaide Pointe Project authorizing the Mayor
and City Clerk to sign.

Approvals: Get approval from division head at a minimum prior      Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head         Information Technology             Yes
Other Division Heads            Communication                      No
Legal Review

For City Clerk Use Only:
Commission Action:




                                              336
City of Muskegon
Brownfield Redevelopment Authority

Amendment to Brownfield Plan Amendment for the
Adelaide Pointe Project at
1204 West Western Avenue
Muskegon, Michigan


Initial Brownfield Plan Amendment Approved by the City of Muskegon
                                                                        October 12, 2021
Brownfield Redevelopment Authority

Initial Brownfield Plan Amendment Approved by the City of Muskegon Board October 26, 2021
of Commissioners


Amendment to Brownfield Plan Amendment Approved by the City of
Muskegon Brownfield Redevelopment Authority

Amendment to Brownfield Plan Amendment Approved by the City of
Muskegon Board of Commissioners


Prepared with the assistance of:
Fishbeck
1515 Arboretum Drive SE
Grand Rapids, Michigan 49546
616-464-3876




                                              337
Table of Contents                                                                                                                             Fishbeck | Page i


1.0    Introduction ...................................................................................................................................................1
       1.1     Proposed Redevelopment and Future Use for the Eligible Property ................................................1
       1.2     Eligible Property Information ............................................................................................................2

2.0    Information Required by Section 13(2) of the Statute ...................................................................................2
       2.1    Description of Costs to Be Paid for With Tax Increment Revenues ..................................................2
       2.2    Summary of Eligible Activities ...........................................................................................................4
       2.3    Estimate of Captured Taxable Value and Tax Increment Revenues ..................................................5
       2.4    Maximum Amount of Note or Bonded Indebtedness .......................................................................5
       2.5    Duration of Brownfield Plan..............................................................................................................5
       2.6    Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdiction ..........................5
       2.7    Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property..5
       2.8    Estimates of Residents and Displacement of Individuals/Families....................................................5
       2.9    Plan for Relocation of Displaced Persons..........................................................................................6
       2.10 Provisions for Relocation Costs .........................................................................................................6
       2.11 Strategy for Compliance with Michigan’s Relocation Assistance Law...............................................6
       2.12 Other Material that the Authority or Governing Body Considers Pertinent .....................................6

List of Figures
Figure 1 – Location Map
Figure 2 – Site Layout Map

List of Tables
Table 1 – Tax Increment Revenue Capture
Table 2 – Tax Increment Revenue Reimbursement Allocation

List of Attachments
Attachment A       Resolution(s)
Attachment B       Conceptual Renderings
Attachment C       Environmental Data Tables and Exceedance Map
Attachment D       Reimbursement Agreement




                                                                              338
December 7, 2022                                                                                                                         Fishbeck | Page 1



1.0              Introduction
The City of Muskegon Brownfield Redevelopment Authority (the “Authority” or MBRA) was established by the City
of Muskegon pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as
amended (“Act 381”). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by
providing economic development incentives through tax increment financing for certain eligible properties.
On October 26, 2021, the City of Muskegon (the “City”) approved a Brownfield Plan Amendment (BPA) to
incorporate 1148 and 1204 West Western Avenue (“Eligible Property”, “Site”, or “Property”) into the City’s
existing Brownfield Plan. The BPA detailed redevelopment plans for a five-phase redevelopment at the Eligible
Property, including eligible activity costs and related reimbursement through local-only tax increment financing.
This amendment to the BPA has been prepared to add state school tax capture for reimbursement of costs
related to Michigan Strategic Fund (MSF) eligible activities during the first three immediate phases of
redevelopment. Future amendments to this amended BPA may be pursued for phases four and five of the
development. See Attachment A for copies of amended BPA resolutions.

1.1              Proposed Redevelopment and Future Use for the Eligible Property
The Developer, Adelaide Pointe QOZB, LLC, is proposing to redevelop a former industrial site located at 1204
West Western Avenue (1148 & 1204 West Western Avenue are now combined), Muskegon, Michigan. Figures 1
and 2 depict the Eligible Property location and layout.

Redevelopment consists of five phases that are anticipated to be completed by 2030. Phases one through three
are the focus of this amended BPA. Development phasing is described below:

          Development Phase                                                            Anticipated/Actual              Desired/Actual
                                                                                       Start Date                      Completion Date

          Phase I – Revitalize existing buildings for boat                                Spring/Summer                        Spring 2022
          storage                                                                              2021

          Phase II – Construction of marina, mixed-use                                       Spring 2023                   Fall/Winter 2024
          building, boater services building*

          Phase III – Construction of 55-unit residential condo                              Spring 2023                   Fall/Winter 2024
          building*

          Phase IV – Construction of hotel and 50 boat                                       Spring 2024                            Fall 2027
          storage units and warehouse

          Phase V – Construction of residential condos                                       Spring 2025                            Fall 2030

Phases one through three include revitalizing the existing site structures for boat storage, business offices, and
lease space (approx. 218,000 sf); creation of a new 280 slip marina and construction of a new three-story, mixed-
use building with ground level retail and office space (approximately 14,700 gross sf), a second-floor restaurant
(approximately 3,700 sf), and third floor deck area (approx. 3,700 sf) (the “Project”). The Project will create a
walkable community that incorporates public access to waterfront activities (e.g., swimming, fishing, boating),
inviting greenspace areas, and transient docking. Sustainable development techniques are proposed throughout



Z:\2020\201515\WORK\REPT\BROWNFIELD PLAN AMENDMENT\2022 AMENDMENT\ADELAIDE POINTE_FINAL_BROWNFIELD PLAN AMENDMENT_2022_12722.DOCX

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November 22, 2022                                                                                                                   Fishbeck | Page 2


the Project, including mass timber construction, solar boardwalks and roof systems, electric vehicle charging
stations, low-impact development stormwater management, and integrated parking. Total private investment in
Phases one through three, not including property acquisition, is approximately $125,000,000. The mixed-use
waterfront development will create approximately 100 new jobs (retail, office, restaurant, marina) and provide
contractor work for hundreds of temporary construction workers.

In addition to environmental activities, this amendment to the BPA includes non-environmental eligible activities
necessary to complete the Project. Non-environmental activities will include demolition, lead/asbestos
abatement, site preparation and public infrastructure improvements. Public infrastructure improvements will
include upgrades to the public utilities (water main, sanitary sewer, and storm sewer), public roadways, marina
and solar docks. Site preparation activities will include specialized foundations, clearing and grubbing, dredging,
compaction and sub-base preparation, cut and fill, excavation for unstable material, geotechnical engineering,
grading/land balancing, relocation of utilities, temporary erosion controls, temporary site control, surveying and
staking, architectural and engineering costs and mass grading.

1.2              Eligible Property Information
The 35-acre Property is located at the west end of West Western Avenue on the south shore of Muskegon Lake.
Since the late 1800s, the Property has been utilized for industrial purposes, primarily a lumberyard followed by
foundry operations. Based on a recent Phase II Environmental Site Assessment (ESA), completed in December
2020, these past industrial uses have resulted in widespread contamination across the Property. Known
contaminants in the soil with concentrations exceeding Michigan Department of Environment, Great Lakes, and
Energy (EGLE) Part 201 Generic Residential Cleanup Criteria (GRCC) include tetrachloroethylene (PCE), arsenic,
cadmium, chromium (total), copper, mercury, selenium, silver and zinc. Groundwater contaminants with
concentrations identified above Part 201 GRCC consist of benzene, 2-methylnaphthalene, naphthalene, cadmium,
chromium (total), copper, lead, mercury, and zinc.
The Developer is not a liable party and completed a Baseline Environmental Assessment (BEA) in accordance with
Part 201 of the Natural Resources and Environmental Protect Act, 1995 PA 451, as amended (NREPA).
Given the known contamination, the Property is a “facility” pursuant to Part 201 of NREPA. As such, it is
considered an “eligible property” as defined by the Michigan Redevelopment Financing Act, Act 381 of 1996.
The location and layout of the Property are depicted in Figures 1 and 2. Environmental data tables and an
exceedance map are provided in Attachment C.

2.0              Information Required by Section 13(2) of the Statute
2.1              Description of Costs to Be Paid for With Tax Increment Revenues
Tax increment revenues will be used to reimburse the Developer and City, as applicable, for the following eligible
activities.
•     Pre-approved BEA, documentation of due care, asbestos/lead paint survey, and additional due care
      assessment
•     Due care activities
•     Asbestos, lead paint, and mold abatement
•     Select building and site demolition
•     Site preparation
•     Infrastructure improvements (public)
•     15% contingency



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•    Brownfield Plan Amendment
•    Brownfield Plan Amendment Implementation
•    Interest

The table below provides an eligible activity cost summary for the Project.



EGLE Eligible Activities                                                                                                            Estimated Cost

       Department Specific Activities
Pre-Approved Sub-Total                                                                                                                      $350,000
BEA activities                                                                                                                               $52,000
Documentation of due care                                                                                                                    $33,000
Hazardous materials survey (e.g., asbestos, lead paint, etc.)                                                                                $20,000
Due care assessment                                                                                                                         $245,000
                                                                            EGLE Eligible Activities Total Costs                            $350,000
Interest (5%)                                                                                                                                 $15,354
EGLE Eligible Costs Sub-Total                                                                                                               $365,354



                                               Summary of Eligible Activity Costs - Developer MSF

                                                                                                                     Estimated        Redevelopment
                                                                                                Developer
                   MSF Eligible Activities                               Total Cost                                 Completion         Phase Related
                                                                                                  Cost
                                                                                                                     Schedule            to Activity

 Public Infrastructure Improvements Sub-Total                            $8,100,000             $8,100,000

 Public Parks (Linear Park, East Peninsula Park,                         $2,000,000             $2,000,000           2023-2024          Phase II & III
 Commuter Bike Path)

 Public Shopper Dock and Public Transient Dock                           $1,300,000             $1,300,000           2023-2024            Phase II

 Marina Basin- (breakwater system/public                                 $4,300,000             $4,300,000           2023-2024            Phase II
 access path)

 Solar Powered Docks                                                        $500,000              $500,000           2023-2024            Phase II

 Site Preparation Sub-Total                                              $6,750,000             $6,750,000

 Specialized Foundations                                                    $905,000              $905,000           2023-2024           Phase II-V

 Clearing and Grubbing                                                      $300,000              $300,000           2023-2024          Phase II & III



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 Dredging                                                                   $800,000              $800,000           2023-2024       Phase II & III

 Compaction and Sub-Base Preparation                                        $350,000              $350,000           2023-2024       Phase II & III

 Cut and Fill                                                               $300,000              $300,000           2023-2024          Phase II

 Excavation for Unstable Material                                             $70,000               $70,000          2023-2024       Phase II & III

 Fill                                                                       $850,000              $850,000           2023-2024       Phase II & III

 Geotechnical Engineering                                                   $180,000              $180,000           2023-2024      Phase I, II & III

 Grading/Land Balancing                                                  $1,550,000             $1,550,000           2023-2024       Phase II & III

 Relocation of Active Utilities                                             $350,000              $350,000           2023-2024       Phase II & III

 Temporary Erosion Controls                                                 $110,000              $110,000           2023-2024       Phase II & III

 Temporary Facility                                                         $165,000              $165,000           2023-2024       Phase II & III

 Temporary Site Control                                                     $195,000              $195,000           2023-2024       Phase II & III

 Surveying and Staking                                                      $125,000              $125,000           2023-2024       Phase II & III

 Architectural/Engineering Costs Related to                                 $500,000              $500,000           2023-2024       Phase II & III
 Eligible Activities

                      MSF Eligible Activities Sub-Total                 $14,850,000           $14,850,000

 Contingency (15 %)                                                      $2,227,500             $2,227,500                             Phase II-V

 Interest (5 %)*                                                         $7,281,564              $7281,564                             Phase I-V

 Brownfield Plan and Work Plan Preparation                                    $10,000               $10,000                             Phase I

 Brownfield   Plan                 and         Work          Plan             $10,000               $10,000                             Phase I
 Implementation

                    MSF Eligible Activities Total Costs                 $24,379,064           $24,379,064

           *Interest collected at a 5% rate and capped at less than $8,000,000




                                ELIGIBLE ACTIVITIES COST SUMMARY- City of Muskegon Activities




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  MSF Eligible Non-Environmental Activities                              Total Cost            City of     Estimated                   Redevelopment
                                                                                            Muskegon Cost Completion                    Phase Related
                                                                                                           Schedule                        Activity

Public Infrastructure (sub-total)
                                                                        $6,743,620             $6,743,620
Public Roadways                                                         $4,000,000             $4,000,000             2023-2024           Phase II

West Western Avenue Reconfiguration-Roadway                             $1,023,620             $1,023,620             2023-2024           Phase II

Water Main                                                                 $850,000               $850,000            2023-2024           Phase II

Sanitary Sewer                                                             $600,000               $600,000            2023-2024           Phase II

Storm Sewer                                                                $270,000               $270,000            2023-2024           Phase II

Local Only Non-Environmental Activities Total
Costs                                                                   $6,743,620             $6,743,620

Interest (5%)
                                                                        $1,357,768             $1,357,768

Total City of Muskegon Bond Eligible Costs
                                                                        $8,101,388             $8,101,388



                                           LOCAL ONLY ELIGIBLE ACTIVITIES COST SUMMARY (Developer)

                                           Local Only Eligible Activities                                                            Estimated Cost

           Department Specific Activities

           Due Care Sub-Total                                                                                                          $3,250,000
           Vapor intrusion mitigation                                                                                                  $500,000
           Soil capping                                                                                                                $1,500,000
           Dewatering                                                                                                                  $250,000
           Contaminated Soil/Dredge Materials Removal and Disposal                                                                     $1,000,000

            Local Only Department Specific Activities Total Costs                                                                      $3,250,000

           Non-Environmental Activities

           Asbestos, Lead based Paint and Mold Abatement                                                                               $250,000




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          Demolition                                                                                                                $500,000

          Site Preparation (Sub-total)                                                                                              $3,160,000

          Specialized Foundations                                                                                                   $1,250,000

          Clearing and Grubbing                                                                                                     $150,000

          Compaction and Sub-Base Preparation                                                                                       $10,000

          Geotechnical Engineering                                                                                                  $50,000

          Relocation of Active Utilities                                                                                            $100,000

          Surveying & Staking                                                                                                       $100,000

          Architectural/Engineering Costs Related to Eligible Activities                                                            $1,500,000

          Public Infrastructure (Sub-total)                                                                                         $1,900,000

          Solar Powered Docks (public)                                                                                              $500,000

          Community Building/Clubhouse and Pool (Public)                                                                            $1,400,000

          Non-Environmental Local Only Eligible Costs                                                                               $5,810,000

          Contingency (15%)                                                                                                         $871,500

          Brownfield Plan/Act 381 Workplan Preparation                                                                              $10,000

          Interest (5%)*                                                                                                            $2,462,900

          Total EGLE and Non-Environmental Local Only Eligible Costs                                                                $12,404,400
           *5% Interest capture begins after MSF Non-Environmental Costs are reimbursed

2.2              Summary of Eligible Activities
Eligible activities as defined by Act 381 and included in this amended BPA consist of the following:
Pre-Approved Activities: These activities are permitted to occur prior to amended BPA approval. Preparation of a
Phase I ESA, BEA and Documentation of Due Care Compliance were necessary to protect the new Property
owner/Developer from liability for environmental contamination. A Hazardous Materials Investigation was
conducted to evaluate potential asbestos, lead paint, and other hazardous materials, as required by regulatory
agencies prior to select building demolition activities. Due care assessment will be conducted to verify compliance
with applicable due care obligations. Pre-approved activities can be reimbursed from state school and local tax
increment revenues.
Due Care Activities: Due care activities will include implementation of vapor intrusion mitigation systems, as
applicable, to prevent unacceptable exposures to potential indoor air inhalation concerns. Soil capping will be
completed to protect against direct contact concerns related to known contamination. Contaminated


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soils/dredge materials which cannot be utilized on the Property will be hauled to an appropriate Type 2 landfill for
disposal. During construction activities, dewatering may be necessary. Contaminated groundwater will be
properly managed to comply with due care. Due care costs will include environmental oversight and
management.
Asbestos, Lead Paint, and Mold Abatement: Prior to select building demolition activities, asbestos, lead paint, and
mold were abated, as applicable, in accordance with applicable regulatory guidelines.
Demolition: Select building and Site demolition will be necessary to facilitate safe redevelopment and reuse of the
Property.
Site Preparation: Site preparation is expected to include specialized foundations due to unsuitable urban fill
material across the Site, clearing and grubbing in preparation for redevelopment, dredging, compaction and sub-
base preparation, cut and fill, excavation for unstable material, fill, geotechnical engineering, grading, land
balancing, relocation of active utilities, temporary erosion control, temporary facility, temporary site control,
surveying, staking, and appropriate associated professional engineering/architectural fees related to the eligible
activities. All the site preparation activities are necessary to support the redevelopment.
Public Infrastructure Improvements: Public Infrastructure improvements will be made by both the Developer and
City of Muskegon in the public right-of-way and publicly accessible land as outlined in the signed Cooperative Use
Agreement between the City of Muskegon and AP dated September 13, 2022. Public infrastructure activities,
including public parks (Linear Park, East Peninsula Park and the commuter bike path), public roadways (Adelaide
Avenue), West Western Avenue reconstruction, public/transient shopper and dockage and dock slips, new and
upgraded water main, sanitary sewer and storm sewer utilities, solar power infrastructure for the public shopper
and transient dockage and marina upgrades including the breakwater with public access path.
Amended BPA Preparation: This amended BPA was required for authorization of reimbursement to the
Developer and City, as applicable, from tax increment revenues under Public Act 381 of 1996, as amended.
Amended BPA Implementation: Tracking, submittal, review of invoices for reimbursement, plan compliance, and
data reporting will be conducted.
Contingency: A 15% contingency is included for those activities not already completed.
Interest: A 5% interest on unreimbursed eligible activities is included.

2.3              Estimate of Captured Taxable Value and Tax Increment Revenues
The base year of this amended BPA is 2021, as established in the approved BPA. The 2021 taxable value of the
eligible property was $903,810. After completion of the development (Phases one, two and three), the taxable
value is estimated at $42,875,000. This amended BPA assumes a 1.0% annual increase in the taxable value of the
Eligible Property. Initial capture is anticipated to begin in 2023.
The estimated captured taxable value for the redevelopment by year and in aggregate for each taxing jurisdiction
is depicted in tabular form (Table 1: Tax Increment Revenue Capture). Actual taxable values and tax increment
revenues may vary year to year based on economic and market conditions, tax incentives, building additions, and
property improvements, among other factors.
A summary of the estimated reimbursement schedule by year and in aggregate is presented as Table 2: Tax
Increment Revenue Reimbursement Allocation.
Method of Financing and Description of Advances Made by the Municipality
The cost of the eligible activities included in this amended BPA will be paid for by the Developer and the City. The
Developer and City will seek reimbursement for eligible activity costs through capture of available local and state



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(as applicable) school tax increment revenues as permitted by Act 381. Additionally, as necessary personal
property taxes may be utilized as well for reimbursement. Refer to Attachment D for a copy of the
Reimbursement Agreement.

2.4              Maximum Amount of Note or Bonded Indebtedness
The City of Muskegon may finance eligible public infrastructure improvements and other eligible activities, as
applicable, via municipal bonds with tax increment financing as the pay back mechanism subject to the terms
outlined in the Reimbursement/Development Agreement (Attachment D). The estimated total bond amount will
not exceed $10,500,000 with interest added at 5 %.

2.5              Duration of Brownfield Plan
Capture of tax increment revenues for the City reimbursement is anticipated to commence in 2023 and end in
2031. Developer reimbursement will follow with an estimated start date of 2023. The anticipated end date for
Developer reimbursement is 2046. It is projected that the amended BPA will extend 29 years, which assumes five
years of additional capture of tax increment revenues for deposit into a Local Brownfield Revolving Fund, if
available.

2.6              Estimated Impact of Tax Increment Financing on Revenues of Taxing
                 Jurisdiction
The estimated amount of tax increment revenues to be captured for this redevelopment from each taxing
jurisdiction by year and in aggregate is presented in Tables 1 and 2.


2.7              Legal Description, Property Map, Statement of Qualifying Characteristics and
                 Personal Property
      •    The legal description is as follows:

           1204 W. Western Avenue
           CITY OF MUSKEGON PART OF SECTION 25 T10N R17W PRT OF BLKS 578-580 DESC AS FOLS COM AT SE
           COR LOT 4 BLK 577 TH S 88D 15M W ALG SLY LN SD BLK 577 EXTND (ALSO BEING NLY LN WESTERN AVE)
           847.15 FT FOR POB TH N 01D 56M 50S W 256.10 FT TH N 31D 37M 35S E 47 FT TH N 55D 15M 15S E
           89.20 FT TH N 35D 54M 50S W 127.65 FT TH N 02D 52M 10S W 553 FT TH S 55D 13 M W 243 FT TH N
           34D 47M W 330 FT M/L TO SHORE OF MUSKEGON LAKE REFERRED TO AS PT B TH RECOM AT POB TH S
           88D 15M W ALG NLY LN WESTERN AVE 18.65 FT TH SWLY ALG SD NLY LN WESTERN AVE ALG ARC OF A
           430.61 FT RAD CURVE TO LT 158.33 FT (LC SD CURVE BEARS S 77D 43M 00S W 157.44 FT & CENTRAL ANG
           SD CURVE IS 21D 04M 00) TO WLY LN NELY 200 FT OF SD BLK 580 TH N 35D 2M 10S W ALG SD WLY LN
           SD NELY 200 FT DIST 850 FT M/L TO SHORE OF MUSKEGON LAKE REFERRED TO AS PT C TH NWLY SELY &
           NELY ALG SHORE OF MUSKEGON LAKE 1300 FT M/L FROM SD PT C TO SD PT B EXC THAT PRT OF ABOVE
           DESC PARCEL THAT LIES WITHIN THE CHESAPEAKE & OHIO RR ROW EXC THAT PART TAKEN BY THE CITY
           OF MUSKEGON FOR THE LAKESHORE TRAIL BIKE PATH DESC AS THAT PART OF BLKS 578 & 580 DESC
           AS COM @ SE COR LOT 4 BLK 577 TH S 88D 40M 42S W ALG N ROW LN WESTERN AVE 847.60 FT TH N
           01D 31M 57S W 256.10 FT TH N 32D 02M 28S E 47 FT TH N 55D 40M 08S E 89.20 FT TH N 35D 29M 57S
           W 127.65 FT TH N 02D 27M 17S W 553 FT TH S 55D 37M 53S W 243 FT TH N 34D 22M 07S W 235.92 FT
           TO POB TH S 50D 44M 04S W 329.75 FT TH S 20D 19M 09S W 96.30 FT TH S 23D 53M 54S E 405.55
           FT TH N 34D 34M 00S W ALG NE LN LAKESHORE YACHT HARBOUR 86.43 FT TH N 23D 53M 54S W 327.11



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           FT TH N 20D 19M 09S E 107.14 FT TH N 50D 44M 04S E 335.70 FT TH S 33D 32M 57S E 16.08 FT TO
           POB TAKEN FOR LAKESHORE TRAIL BIKE PATH ACROSS SD PROPERTY AND COM AT SE COR LOT 4 BLK
           577 FOR POB TH N 1 DEG 41 MIN W 158.40 FT TH N 76 DEG 43 MIN W 103.55 FT TH NWLY ON THE ARC
           OF A 492.47 FT RAD CURVE TO THE RT 110.31 FT (LONG CORD BEARS N 70D 18M W 110.07 FT CENTRAL
           ANGLE IS 12D 50M 00S) TH N 63 DEG 53 MIN W 67 FT TH N 2 DEG 4 MIN W 33.8 FT TO RR R/W TH
           CON'T N 2 DEG 4 MIN W 367.7 FT TH N 37 DEG W 730 FT TH N 48 DEG W 600 FT M/L TO MUSKEGON
           LAKE TO A PT A RECOM AT POB TH S 88 DEG 15 MIN W 847.15 FT TH N 1 DEG 56 MIN 50 SEC W 256.1
           FT TH N 31 DEG 37 MIN 35 SEC E 47 FT TH N 55 DEG 15 MIN 15 SEC E 89.2 FT TH N 35 DEG 54 MIN 50
           SEC W 127.65 FT TH N 2 DEG 52 MIN 10 SEC W 553 FT TH S 55 DEG 13 MIN W 243 FT TH N 34 DEG 47
           MIN W 330 FT M/L TO THE SHORE OF MUSKEGON LAKE TO A PT REFERRED TO AS PT B TH WLY ALG
           SHORE LN 1500 FT M/L TO SD PT A EXC THAT PART LYING WITHIN C&O RR R/W RECORDED IN L 702 P
           134 ALSO EXC COM AT SW COR LOT 4 BLK 574 FOR POB TH WLY ALG WESTERN AVE 20.5 FT TO SE COR
           LOT 5 TH NLY TO SLY LN C&O RR R/W TH SELY ALG SLY LN OF SD R/W TO NW COR LOT 3 BLK 577 TH S
           ALG W LN LOT 3 TO NE COR LOT 4 TH WLY ALG NLY LN LOT 4 40 FT TO NW COR SD LOT TH SLY ALG W LN
           TO POB EXC THAT PART OF BLK 578 DESCRIBED AS COM AT THE SE COR OF LOT 4 BLK 577 TH S 88D
           40M 42S W ALG N R-O-W LINE OF WESTERN AVE 847.60 FT TH N 01D 31M 57S W 256.10 FT TH N 32 D
           02M 28S E 47 FT TH N 55D 40M 08S E 89.20 FT TH N 35D 29M 57S W 127.65 FT TH N 02D 27M 17S W
           553 FT TH S 55D 37M 53S W 243 FT TH N 34D 22M 07S W 235.92 FT TO POB TH N 33D 32M 57S W
           16.08FT TH N 62D 10M 01S E 211.19 FT TH S 87D 42M 46S E 126.81 FT TH N 71D 39M 34S E 169.45
           FT TH S 53D 57M 29S E 104.89 FT TH S 36D 27M 44S E 604.13 FT TH S 01D 31M 44S E 16 FT TH S 38D
           27M 16S W 8.34 FT TH N 36D 27M 44S W 610.01FT TH N 53D 57M 29S W 94.21 FT TH S 71D 39M 34S
           W 164.14 FT TH N 87D 42M 46S W 125.42 FT TH S 62D 10M 01S W 205.29 FT TO POB
      •    The Property layout is depicted on Figure 2.
      •    The Property is considered an “eligible property” as defined by Act 381 because the Property is a facility
           pursuant to Part 201. Facility verification is included in Attachment C.
      •    New personal property added to the Property is included as part of the Eligible Property to the extent it is
           taxable.

2.8              Estimates of Residents and Displacement of Individuals/Families
No residents or families will be displaced because of the Project.

2.9              Plan for Relocation of Displaced Persons
Not applicable.

2.10             Provisions for Relocation Costs
Not applicable.

2.11             Strategy for Compliance with Michigan’s Relocation Assistance Law
Not applicable.

2.12             Other Material that the Authority or Governing Body Considers Pertinent
The Project will significantly improve the Muskegon Lake shoreline through revitalization of Property once used
for industrial purposes. Existing structures will be revitalized, and environmental exposure risks mitigated. A new
marina with transient boat slips will provide local citizens and tourists with opportunities to access the vibrant
Muskegon downtown and other nearby recreational activities. Construction of new boat storage and residential




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condominiums will expand Muskegon Lake access and increase long-term tax revenues for the City of Muskegon
and the State of Michigan. The Development will also create numerous job opportunities for the community.




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                                                                              348
                                                        Figure 1
                                                       Location Map




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                                                                        349
                                                                                                                      VICINITY MAP
                                                                                                                        MICHIGAN




                                                                                                                 CITY OF
                                                                                                               MUSKEGON
                                                                                                                              _
                                                                                                                              ^
                                                                                                            MUSKEGON COUNTY




                                                                                                                                                                                                               Hard copy is
                                                                                                                                                                                                             intended to be
                                                                                                                                                                                                             8.5"x11" when
                                                                                                                                                                                                            plotted. Scale(s)
                                                                                                                                                                                                              indicated and
                                                                                                                                                                                                          graphic quality may
                                                                                                                                                                                                          not be accurate for
                                                                                                                                                                                                             any other size.




                                                                                                                                                                                                               1148 & 1204 West Western Ave., Muskegon, Muskegon County MI 49441
                                                                                                                                                                                               Leesta Management, LLC

                                                                                                                                                                                                                                                                                   Baseline Environmental Assessment
                                                                                                                                     SITE
 PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\FIG01_LocationMap.mxd Date: 5/25/2021 1:59:36 PM User: bahannah




                                                                                                                                                                                                           PROJECT NO.
                                                                                                                                                                                                                   201515

                                                                                                                                                             LOCATION MAP                                    FIGURE NO.

                                                                                                                                                                               FEET

                                                                                                                                            350
                                                                                                                                                  NORTH   0      1,000     2,000
                                                                                                                                                    © OpenStreetMap (and) contributors, CC-BY-SA                                       1
©Copyright 2021 All Rights Reserved
 Figure 2
Site Layout Map




      351
                                                                                                            LEGEND

                                                                                                                           Approximate Property Boundary




                                                                                                                                                                                                                                         Hard copy is
                                                                                                                                                                                                                                       intended to be
                                                                                                                                                                                                                                       8.5"x11" when
                                                                                                                                                                                                                                      plotted. Scale(s)
                                                                                                                                                                                                                                        indicated and
                                                                                                                                                                                                                                    graphic quality may
                                                                                                                                                                                                                                    not be accurate for
                                                                                                                                                                                                                                       any other size.




                                                                                                                                                                                                                                         1148 & 1204 West Western Ave., Muskegon, Muskegon County MI 49441
                                                                                                                                                                                                                         Leesta Management, LLC

                                                                                                                                                                                                                                                                                                             Baseline Environmental Assessment
PLOT INFO: Z:\2020\201515\CAD\GIS\mapdoc\FIG03_SiteMap.mxd Date: 5/25/2021 2:03:18 PM User: bahannah




                                                                                                                                                                                                                                     PROJECT NO.


                                                                                                                                                                                               SITE MAP
                                                                                                                                                                                                                                             201515
                                                                                                                                                           Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus
                                                                                                                                                           DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community,                  FIGURE NO.
                                                                                                                                                           Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE,
                                                                                                                                                                                                                      FEET
                                                                                                                                                           Garmin, (c) OpenStreetMapNORTH        0 and the150
                                                                                                                                                                                      contributors,        GIS user300
                                                                                                                                                                                                                                                                       2
                                                                                                                                                           community
                                                                                                       ©Copyright 2021 All Rights Reserved
                                                                                                                                                               352
        Table 1
Tax Increment Revenue Capture




             353
Table 1 - Estimate of Total Incremental Taxes Available for Capture                                                                                                                                                                                 1 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan




                  Estimated Taxable Value (TV) Increase Rate:     1%

                                                      Plan Year              0               1             2               3            4            5           6            7             8            9            10
                                                  Calendar Year            2021            2022          2023            2024         2025         2026        2027         2028          2029         2030         2031
                                             Base Taxable Value        $    903,810 $        903,810 $    903,810 $        903,810 $   903,810 $    903,810 $    903,810 $    903,810 $     903,810 $    903,810 $    903,810
                                              Estimated New TV         $          - $      1,750,000   $14,875,000      $42,875,000 $43,303,750  $43,736,788  $44,174,155  $44,615,897 $ 45,062,056 $ 45,512,676 $ 45,967,803
                                                              1
                   Incremental Difference (New TV - Base TV)           $       -       $    846,190 $ 13,971,190 $      41,971,190 $ 42,399,940 $ 42,832,978 $ 43,270,345 $            43,712,087 $ 44,158,246 $ 44,608,866 $ 45,063,993

School Capture                             Millage Rate
State Education Tax (SET)                        6.00000               $       -       $      5,077 $      83,827 $        251,827 $   254,400 $         256,998 $       259,622 $        262,273 $       264,949 $       267,653 $       270,384
School Operating Tax                            17.98380               $       -       $     15,218 $     251,255 $        754,801 $   762,512 $         770,300 $       778,165 $        786,109 $       794,133 $       802,237 $       810,422
                            School Total        23.9838                $       -       $     20,295 $     335,082 $      1,006,629 $ 1,016,912 $       1,027,298 $     1,037,787 $      1,048,382 $     1,059,083 $     1,069,890 $     1,080,806

Local Capture                              Millage Rate
County Museum                                    0.32200               $           -   $        272   $     4,499   $       13,515   $    13,653   $      13,792   $      13,933   $       14,075   $      14,219   $      14,364   $      14,511
County Veterans                                  0.07150               $           -   $         61   $       999   $        3,001   $     3,032   $       3,063   $       3,094   $        3,125   $       3,157   $       3,190   $       3,222
Senior Citzens Services                          0.49990               $           -   $        423   $     6,984   $       20,981   $    21,196   $      21,412   $      21,631   $       21,852   $      22,075   $      22,300   $      22,527
Central Dispatch                                 0.29999               $           -   $        254   $     4,191   $       12,591   $    12,720   $      12,849   $      12,981   $       13,113   $      13,247   $      13,382   $      13,519
Community College                                2.20340               $           -   $      1,864   $    30,784   $       92,479   $    93,424   $      94,378   $      95,342   $       96,315   $      97,298   $      98,291   $      99,294
M.A.I.S.D                                        4.75410               $           -   $      4,023   $    66,420   $      199,535   $   201,574   $     203,632   $     205,712   $      207,812   $     209,933   $     212,075   $     214,239
City Operating                                  10.07540               $           -   $      8,526   $   140,765   $      422,877   $   427,196   $     431,559   $     435,966   $      440,417   $     444,912   $     449,452   $     454,038
City Sanitation                                  2.99790               $           -   $      2,537   $    41,884   $      125,825   $   127,111   $     128,409   $     129,720   $      131,044   $     132,382   $     133,733   $     135,097
Hackley Library                                  2.39970               $           -   $      2,031   $    33,527   $      100,718   $   101,747   $     102,786   $     103,836   $      104,896   $     105,967   $     107,048   $     108,140
MPS Sinking                                      0.99810               $           -   $        845   $    13,945   $       41,891   $    42,319   $      42,752   $      43,188   $       43,629   $      44,074   $      44,524   $      44,978
County Operating                                 5.69780               $           -   $      4,821   $    79,605   $      239,143   $   241,586   $     244,054   $     246,546   $      249,063   $     251,605   $     254,172   $     256,766
                             Local Total        30.3198                $       -       $     25,656   $   423,604   $    1,272,558   $ 1,285,557   $   1,298,687   $   1,311,948   $    1,325,341   $   1,338,869   $   1,352,531   $   1,366,331

Non-Capturable Millages                    Millage Rate
Community College Debt                           0.34000               $           -   $        288   $     4,750   $      14,270    $    14,416   $     14,563    $     14,712    $      14,862    $     15,014    $     15,167    $     15,322
Hackley Debt                                     0.45320               $           -   $        383   $     6,332   $      19,021    $    19,216   $     19,412    $     19,610    $      19,810    $     20,013    $     20,217    $     20,423
MPS Debt - 1995                                  3.86000               $           -   $      3,266   $    53,929   $     162,009    $   163,664   $    165,335    $    167,024    $     168,729    $    170,451    $    172,190    $    173,947
MPS Debt - 2009                                  3.50000               $           -   $      2,962   $    48,899   $     146,899    $   148,400   $    149,915    $    151,446    $     152,992    $    154,554    $    156,131    $    157,724
         Total Non-Capturable Taxes              8.1532                $       -       $      6,899   $   113,910   $     342,200    $   345,695   $    349,226    $    352,792    $     356,393    $    360,031    $    363,705    $    367,416



1
Assumes 1% annual increase for inflation
    Total Tax Increment Revenue (TIR) Available for Capture            $           - $       45,951 $     758,686 $      2,279,186 $ 2,302,469 $       2,325,984 $     2,349,735 $      2,373,723 $     2,397,951 $     2,422,422 $     2,447,137

Notes-
Table 2 assumes incremental annual investment with
project completion in 2025.

For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overall investment
of $125,000,000



Z:\2020\201515\WORK\Rept\Brownfield Plan Amendment\2022 Amendment\TB 1354
                                                                      TBL02 and TBL03_TIF_ Adelaide rev 1122022.xlsx
Table 1 - Estimate of Total Incremental Taxes Available for Capture                                                                                                                                                                                      2 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan




                  Estimated Taxable Value (TV) Increase Rate:

                                                      Plan Year     11           12           13           14           15           16           17           18           19          20           21           22
                                                  Calendar Year   2032         2033         2034         2035         2036         2037         2038         2039         2040         2041         2042         2043
                                             Base Taxable Value $   903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810
                                              Estimated New TV $ 46,427,481 $ 46,891,756 $ 47,360,674 $ 47,834,280 $ 48,312,623 $ 48,795,749 $ 49,283,707 $ 49,776,544 $ 50,274,309 $ 50,777,052 $ 51,284,823 $ 51,797,671
                                                            1
                   Incremental Difference (New TV - Base TV) $ 45,523,671 $ 45,987,946 $ 46,456,864 $ 46,930,470 $ 47,408,813 $ 47,891,939 $ 48,379,897 $ 48,872,734 $ 49,370,499 $ 49,873,242 $ 50,381,013 $ 50,893,861

School Capture                             Millage Rate
State Education Tax (SET)                        6.00000        $     273,142 $       275,928 $       278,741 $       281,583 $       284,453 $       287,352 $       290,279 $       293,236 $       296,223 $       299,239 $       302,286 $       305,363
School Operating Tax                            17.98380        $     818,689 $       827,038 $       835,471 $       843,988 $       852,591 $       861,279 $       870,054 $       878,917 $       887,869 $       896,910 $       906,042 $       915,265
                            School Total        23.9838         $   1,091,831 $     1,102,966 $     1,114,212 $     1,125,571 $     1,137,043 $     1,148,631 $     1,160,334 $     1,172,154 $     1,184,092 $     1,196,150 $     1,208,328 $     1,220,628

Local Capture                              Millage Rate
County Museum                                    0.32200        $      14,659   $      14,808   $      14,959   $      15,112   $      15,266   $      15,421   $      15,578   $      15,737   $      15,897   $      16,059   $      16,223   $      16,388
County Veterans                                  0.07150        $       3,255   $       3,288   $       3,322   $       3,356   $       3,390   $       3,424   $       3,459   $       3,494   $       3,530   $       3,566   $       3,602   $       3,639
Senior Citzens Services                          0.49990        $      22,757   $      22,989   $      23,224   $      23,461   $      23,700   $      23,941   $      24,185   $      24,431   $      24,680   $      24,932   $      25,185   $      25,442
Central Dispatch                                 0.29999        $      13,657   $      13,796   $      13,937   $      14,079   $      14,222   $      14,367   $      14,513   $      14,661   $      14,811   $      14,961   $      15,114   $      15,268
Community College                                2.20340        $     100,307   $     101,330   $     102,363   $     103,407   $     104,461   $     105,525   $     106,600   $     107,686   $     108,783   $     109,891   $     111,010   $     112,140
M.A.I.S.D                                        4.75410        $     216,424   $     218,631   $     220,861   $     223,112   $     225,386   $     227,683   $     230,003   $     232,346   $     234,712   $     237,102   $     239,516   $     241,955
City Operating                                  10.07540        $     458,669   $     463,347   $     468,071   $     472,843   $     477,663   $     482,530   $     487,447   $     492,412   $     497,428   $     502,493   $     507,609   $     512,776
City Sanitation                                  2.99790        $     136,475   $     137,867   $     139,273   $     140,693   $     142,127   $     143,575   $     145,038   $     146,516   $     148,008   $     149,515   $     151,037   $     152,575
Hackley Library                                  2.39970        $     109,243   $     110,357   $     111,483   $     112,619   $     113,767   $     114,926   $     116,097   $     117,280   $     118,474   $     119,681   $     120,899   $     122,130
MPS Sinking                                      0.99810        $      45,437   $      45,901   $      46,369   $      46,841   $      47,319   $      47,801   $      48,288   $      48,780   $      49,277   $      49,778   $      50,285   $      50,797
County Operating                                 5.69780        $     259,385   $     262,030   $     264,702   $     267,400   $     270,126   $     272,879   $     275,659   $     278,467   $     281,303   $     284,168   $     287,061   $     289,983
                             Local Total        30.3198         $   1,380,268   $   1,394,345   $   1,408,562   $   1,422,922   $   1,437,425   $   1,452,074   $   1,466,868   $   1,481,811   $   1,496,903   $   1,512,146   $   1,527,542   $   1,543,091

Non-Capturable Millages                    Millage Rate
Community College Debt                           0.34000        $     15,478    $     15,636    $     15,795    $     15,956    $     16,119    $     16,283    $     16,449    $     16,617    $     16,786    $     16,957    $     17,130    $     17,304
Hackley Debt                                     0.45320        $     20,631    $     20,842    $     21,054    $     21,269    $     21,486    $     21,705    $     21,926    $     22,149    $     22,375    $     22,603    $     22,833    $     23,065
MPS Debt - 1995                                  3.86000        $    175,721    $    177,513    $    179,323    $    181,152    $    182,998    $    184,863    $    186,746    $    188,649    $    190,570    $    192,511    $    194,471    $    196,450
MPS Debt - 2009                                  3.50000        $    159,333    $    160,958    $    162,599    $    164,257    $    165,931    $    167,622    $    169,330    $    171,055    $    172,797    $    174,556    $    176,334    $    178,129
         Total Non-Capturable Taxes              8.1532         $    371,164    $    374,949    $    378,772    $    382,634    $    386,534    $    390,473    $    394,451    $    398,469    $    402,528    $    406,627    $    410,766    $    414,948



1
Assumes 1% annual increase for inflation
    Total Tax Increment Revenue (TIR) Available for Capture $       2,472,099 $     2,497,311 $     2,522,774 $     2,548,493 $     2,574,469 $     2,600,704 $     2,627,202 $     2,653,965 $     2,680,995 $     2,708,296 $     2,735,870 $     2,763,719

Notes-
Table 2 assumes incremental annual investment with
project completion in 2025.

For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overall investment
of $125,000,000



Z:\2020\201515\WORK\Rept\Brownfield Plan Amendment\2022 Amendment\TB 1355
                                                                      TBL02 and TBL03_TIF_ Adelaide rev 1122022.xlsx
Table 1 - Estimate of Total Incremental Taxes Available for Capture                                                                                                                                            3 of 3
1148 and 1204 West Western Avenue, Muskegon, Muskegon County, Michigan




                  Estimated Taxable Value (TV) Increase Rate:

                                                      Plan Year    23           24           25           26           27           28           29           30         TOTAL
                                                  Calendar Year   2044         2045         2046         2047         2048         2049         2050         2051
                                             Base Taxable Value $   903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $    903,810 $       -
                                              Estimated New TV $ 52,315,648 $ 52,838,804 $ 53,367,192 $ 53,900,864 $ 54,439,873 $ 54,984,272 $ 55,534,115 $ 56,089,456 $       -
                                                            1
                   Incremental Difference (New TV - Base TV) $ 51,411,838 $ 51,934,994 $ 52,463,382 $ 52,997,054 $ 53,536,063 $ 54,080,462 $ 54,630,305 $ 55,185,646 $                                     -

School Capture                             Millage Rate
State Education Tax (SET)                        6.00000        $     308,471 $       311,610 $       314,780 $       317,982 $       321,216 $       324,483 $       327,782 $       331,114 $ 4,441,724
School Operating Tax                            17.98380        $     924,580 $       933,989 $       943,491 $       953,088 $       962,782 $       972,572 $       982,460 $       992,448 $ 13,313,180
                            School Total        23.9838         $   1,233,051 $     1,245,599 $     1,258,271 $     1,271,071 $     1,283,998 $     1,297,055 $     1,310,242 $     1,323,561 $ 17,754,904

Local Capture                              Millage Rate
County Museum                                    0.32200        $      16,555   $      16,723   $      16,893   $      17,065   $      17,239   $      17,414   $      17,591   $      17,770   $    238,373
County Veterans                                  0.07150        $       3,676   $       3,713   $       3,751   $       3,789   $       3,828   $       3,867   $       3,906   $       3,946   $     52,931
Senior Citzens Services                          0.49990        $      25,701   $      25,962   $      26,226   $      26,493   $      26,763   $      27,035   $      27,310   $      27,587   $    370,070
Central Dispatch                                 0.29999        $      15,423   $      15,580   $      15,738   $      15,899   $      16,060   $      16,224   $      16,389   $      16,555   $    222,079
Community College                                2.20340        $     113,281   $     114,434   $     115,598   $     116,774   $     117,961   $     119,161   $     120,372   $     121,596   $ 1,631,149
M.A.I.S.D                                        4.75410        $     244,417   $     246,904   $     249,416   $     251,953   $     254,516   $     257,104   $     259,718   $     262,358   $ 3,519,400
City Operating                                  10.07540        $     517,995   $     523,266   $     528,590   $     533,967   $     539,397   $     544,882   $     550,422   $     556,017   $ 7,458,691
City Sanitation                                  2.99790        $     154,128   $     155,696   $     157,280   $     158,880   $     160,496   $     162,128   $     163,776   $     165,441   $ 2,219,307
Hackley Library                                  2.39970        $     123,373   $     124,628   $     125,896   $     127,177   $     128,470   $     129,777   $     131,096   $     132,429   $ 1,776,468
MPS Sinking                                      0.99810        $      51,314   $      51,836   $      52,364   $      52,896   $      53,434   $      53,978   $      54,527   $      55,081   $    738,881
County Operating                                 5.69780        $     292,934   $     295,915   $     298,926   $     301,967   $     305,038   $     308,140   $     311,273   $     314,437   $ 4,218,009
                             Local Total        30.3198         $   1,558,796   $   1,574,658   $   1,590,679   $   1,606,860   $   1,623,202   $   1,639,708   $   1,656,379   $   1,673,217   $ 22,445,357

Non-Capturable Millages                    Millage Rate
Community College Debt                           0.34000        $     17,480    $     17,658    $     17,838    $     18,019    $     18,202    $     18,387    $     18,574    $     18,763    $   251,698
Hackley Debt                                     0.45320        $     23,300    $     23,537    $     23,776    $     24,018    $     24,263    $     24,509    $     24,758    $     25,010    $   335,498
MPS Debt - 1995                                  3.86000        $    198,450    $    200,469    $    202,509    $    204,569    $    206,649    $    208,751    $    210,873    $    213,017    $ 2,857,509
MPS Debt - 2009                                  3.50000        $    179,941    $    181,772    $    183,622    $    185,490    $    187,376    $    189,282    $    191,206    $    193,150    $ 2,591,006
         Total Non-Capturable Taxes              8.1532         $    419,171    $    423,436    $    427,744    $    432,096    $    436,490    $    440,929    $    445,412    $    449,940    $ 6,035,711



1
Assumes 1% annual increase for inflation
    Total Tax Increment Revenue (TIR) Available for Capture $       2,791,847 $     2,820,257 $     2,848,950 $     2,877,930 $     2,907,200 $     2,936,763 $     2,966,622 $     2,996,779 $ 40,200,261

Notes-
Table 2 assumes incremental annual investment with
project completion in 2025.

For the purpose of Table 2 the new taxable value is
estimated based on 35% of a total overall investment
of $125,000,000



Z:\2020\201515\WORK\Rept\Brownfield Plan Amendment\2022 Amendment\TB 1356
                                                                      TBL02 and TBL03_TIF_ Adelaide rev 1122022.xlsx
                 Table 2
Tax Increment Revenue Reimbursement Allocation




                      357
Table 2 - Estimate of Total Incremental Taxes Available for Reimbursement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     1 of 1
1148 1204 West Western Avenue, Muskegon, Muskegon County, Michigan



                                                                              Developer
                                                         Proportionality      Maximum           School &
                                                                           Reimbursement       Local Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                             Estimated Developer Capture           $   35,814,206

                                                              44.1%              State         $ 13,499,629                                                                                                                                                                                                                                                                                                                                                                                                                                                            Estimated City of Muskegon Capture    $    8,101,388
                                                              55.9%              Local          31,750,577                                    Estimated Years of Capture: 29 years                                                                                                                                                                                                                                                                                                                                                                                     BRA Administrative Fee                $     170,500
                                                                                TOTAL          $ 45,250,206                                                                                                                                                                                                                                                                                                                                                                                                                                                            State Brownfield Redevelopment Fund   $    2,220,862
                                                                                 EGLE          $ 365,354                                                                                                                                                                                                                                                                                                                                                                                                                                                               Local Brownfield Revolving Fund       $          -
                                                                                 MSF           $32,480,452
                                                                                 Local Only    $ 12,404,400

                                                                                                                  2021             2022            2023             2024               2025            2026            2027            2028         2029        2030        2031        2032        2033        2034        2035        2036        2037                       2038         2039        2040        2041        2042        2043        2044        2045        2046        2047        2048        2049        2050        2051        TOTAL
Total State Incremental Revenue                                                                               $              - $     20,295 $        335,082 $      1,006,629 $        1,016,912 $     1,027,298 $     1,037,787 $     1,048,382 $ 1,059,083 $ 1,069,890 $ 1,080,806 $ 1,091,831 $ 1,102,966 $ 1,114,212 $ 1,125,571 $ 1,137,043 $ 1,148,631 $                 1,160,334 $ 1,172,154 $ 1,184,092 $ 1,196,150 $ 1,208,328 $ 1,220,628 $ 1,233,051 $ 1,245,599 $ 1,258,271 $ 1,271,071 $ 1,283,998 $ 1,297,055 $ 1,310,242 $ 1,323,561 $ 17,754,904
State Brownfield Redevelopment Fund (50% of SET)                                                              $              - $      2,539 $         41,914 $        125,914 $          127,200 $       128,499 $       129,811 $       131,136 $   132,475 $   133,827 $   135,192 $   136,571 $   137,964 $   139,371 $   140,791 $   142,226 $   143,676 $                   145,140 $   146,618 $   148,111 $   149,620 $   151,143 $   152,682 $   154,236 $   155,805 $   157,390 $   158,991 $   160,608 $   162,241 $   163,891 $   165,557 $ 2,220,862
State TIR Available for Reimbursement                                                                         $              - $     17,756 $        293,169 $        880,715 $          889,712 $       898,799 $       907,976 $       917,246 $   926,608 $   936,064 $   945,614 $   955,260 $   965,002 $   974,842 $   984,780 $   994,817 $ 1,004,955 $                 1,015,194 $ 1,025,536 $ 1,035,981 $ 1,046,530 $ 1,057,185 $ 1,067,947 $ 1,078,816 $ 1,089,794 $ 1,100,881 $ 1,112,080 $ 1,123,390 $ 1,134,814 $ 1,146,351 $ 1,158,005 $ 15,534,042

Total Local Incremental Revenue                                                                               $              - $     25,656 $         423,604 $      1,272,558 $       1,285,557 $     1,298,687 $     1,311,948 $      1,325,341 $ 1,338,869 $ 1,352,531 $ 1,366,331 $ 1,380,268 $ 1,394,345 $ 1,408,562 $ 1,422,922 $ 1,437,425 $ 1,452,074 $                1,466,868 $ 1,481,811 $ 1,496,903 $ 1,512,146 $ 1,527,542 $ 1,543,091 $ 1,558,796 $ 1,574,658 $ 1,590,679 $ 1,606,860 $ 1,623,202 $ 1,639,708 $ 1,656,379 $ 1,673,217 $ 22,445,357
BRA Administrative Fee                                                                                        $              - $        500 $          10,000 $         10,000 $          10,000 $        10,000 $        10,000 $         10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $                   10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    10,000 $    170,500
Local TIR Available for Reimbursement                                                                         $              - $     25,156 $         413,604 $      1,262,558 $       1,275,557 $     1,288,687 $     1,301,948 $      1,315,341 $ 1,328,869 $ 1,342,531 $ 1,356,331 $ 1,370,268 $ 1,384,345 $ 1,398,562 $ 1,412,922 $ 1,427,425 $ 1,442,074 $                1,456,868 $ 1,471,811 $ 1,486,903 $ 1,502,146 $ 1,517,542 $ 1,533,091 $ 1,548,796 $ 1,564,658 $ 1,580,679 $ 1,596,860 $ 1,613,202 $ 1,629,708 $ 1,646,379 $ 1,663,217 $ 22,274,857

Total State & Local TIR Available                                                                             $              - $     42,913 $         706,772 $      2,143,273 $       2,165,269 $     2,187,486 $     2,209,924 $      2,232,587 $ 2,255,477 $ 2,278,595 $ 2,301,945 $ 2,325,528 $ 2,349,347 $ 2,373,404 $ 2,397,702 $ 2,422,242 $ 2,447,028 $                2,472,062 $ 2,497,347 $ 2,522,884 $ 2,548,676 $ 2,574,727 $ 2,601,038 $ 2,627,612 $ 2,654,452 $ 2,681,560 $ 2,708,939 $ 2,736,592 $ 2,764,522 $ 2,792,731 $ 2,821,222 $ 37,808,899

                                                                               Beginning
DEVELOPER                                                                       Balance
Developer Reimbursement Balance                                            $               -                  $              - $   7,702,221 $     14,583,273 $     22,669,709 $ 23,615,841 $ 24,239,723 $ 26,925,997 $                26,603,113 $ 26,252,069 $ 25,871,335 $ 24,263,067 $ 21,937,539 $ 19,588,192 $ 17,214,788 $ 14,817,087 $ 12,394,844 $ 10,444,891 $       9,437,424 $ 8,363,894 $ 7,220,840 $ 6,004,629 $ 4,711,441 $ 3,337,268 $ 1,877,896 $   328,900 $         - $        - $         - $          - $         - $         -




Pre-Approved Environmental Costs                                           $        350,000                   $              - $    350,000   $       322,441   $              -
   State Tax Reimbursement                                                 $        164,341                   $          -     $     17,756   $       146,584   $          -                                                                                                                                                                                                                                                                                                                                                                           $    164,341
   Local Tax Reimbursement                                                 $        201,013                   $          -     $     25,156   $       175,857   $          -                                                                                                                                                                                                                                                                                                                                                                           $    201,013
   Interest (5%)                                                           $         15,354                   $          -     $     15,354   $           -     $          -                                                                                                                                                                                                                                                                                                                                                                           $     15,354
    Total EGLE Reimbursement Balance                                                                          $              - $    322,441   $             -   $              -                                                                                                                                                                                                                                                                                                                                                                       $        -

Non Environmental Costs                                                    $     17,097,500                   $              - $   6,839,000 $     12,310,200   $   18,022,468     $ 17,798,374 $ 17,551,526       $ 17,280,673 $      16,984,497   $ 16,661,613   $ 16,310,569   $ 15,929,835   $ 14,321,567 $ 11,996,039 $ 9,646,692 $ 7,273,288 $ 4,875,587 $ 2,453,344 $      6,316
   State Tax Reimbursement                                                 $      9,998,447                                                  $              -   $      440,358     $    444,856 $    449,399       $    453,988 $         458,623   $    463,304   $    468,032   $    933,917   $    955,260 $    965,002 $   974,842 $   984,780 $   994,817 $ 1,004,955 $      6,316                                                                                                                                                                $ 9,998,447
   Local Tax Reimbursement                                                 $     14,380,617                   $          -                   $         30,945   $      631,279     $    637,779 $    644,343       $    650,974 $         657,671   $    664,434   $    671,266   $ 1,356,331    $ 1,370,268 $ 1,384,345 $ 1,398,562 $ 1,412,922 $ 1,427,425 $ 1,442,074                                                                                                                                                                               $ 14,380,617
   Interest (5%)**                                                         $      7,281,564                   $          -     $     341,950 $        613,963   $      847,542     $    835,787 $    822,889       $    808,786 $         793,410   $    776,694   $    758,564   $    681,979                                                                                                                                                                                                                                                         $ 7,281,564
   Total Non Environmental Reimbursement Balance                                                              $              - $   7,180,950 $     12,893,218   $   17,798,374     $ 17,551,526 $ 17,280,673       $ 16,984,497 $      16,661,613   $ 16,310,569   $ 15,929,835   $ 14,321,567   $ 11,996,039 $ 9,646,692 $ 7,273,288 $ 4,875,587 $ 2,453,344 $     6,316 $           - $         -                                                                                                                                                    $          -

Local Only Costs                                                           $      9,941,500                   $              - $    198,830 $       1,690,055 $      4,871,335 $       6,064,315 $     6,959,050 $     9,941,500 $      9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 10,438,575 $ 9,437,424 $ 8,363,894 $ 7,220,840 $ 6,004,629 $ 4,711,441 $ 3,337,268 $ 1,877,896 $                 328,900
   Local Tax Reimbursement                                                 $     12,404,400                   $          -     $        -   $             -   $            -   $             -   $           -   $           -   $            -   $       -   $       -   $       -   $       -               $       -   $       -   $       -   $        -   $ 1,450,552 $ 1,471,811 $ 1,486,903 $ 1,502,146 $ 1,517,542 $ 1,533,091 $ 1,548,796 $ 1,564,658 $                 328,900                                                               $ 12,404,400
   Interest (5%)                                                           $      2,462,900                   $          -                                                                                                                                                                                                                        $    497,075 $   449,401 $   398,281 $   343,850 $   285,935 $   224,354 $   158,918 $    89,424 $    15,662 $                     -                                                                 $ 2,462,900
   Total Non Environmental Reimbursement Balance                                                              $              - $    198,830 $       1,690,055 $      4,871,335 $       6,064,315 $     6,959,050 $     9,941,500 $      9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 9,941,500 $ 10,438,575 $ 9,437,424 $ 8,363,894 $ 7,220,840 $ 6,004,629 $ 4,711,441 $ 3,337,268 $ 1,877,896 $   328,900 $                       -                                                               $          -
Total Annual Developer Reimbursement                                                                          $              - $     42,913 $         353,386 $       631,279 $         637,779 $       644,343 $      1,104,962 $      1,116,293 $ 1,127,738 $ 1,139,297 $ 2,290,248 $ 2,325,528 $ 2,349,347 $ 2,373,404 $ 2,397,702 $ 2,422,242 $ 2,447,028 $                1,456,868 $ 1,471,811 $ 1,486,903 $ 1,502,146 $ 1,517,542 $ 1,533,091 $ 1,548,796 $ 1,564,658 $   328,900