Jan 25, 2016 - Association (GFOA) of the United States and Canada awarded a ...... $1,722. $1,773. $1,827. $1,881. $1,93
City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.cityofmidlandmi.gov
REGULAR MEETING OF THE MIDLAND CITY COUNCIL City Hall, 333 W. Ellsworth Street January 25, 2016
7:00 p.m. AGENDA
CALL TO ORDER - Maureen Donker, Mayor PLEDGE OF ALLEGIANCE TO THE FLAG
ROLL CALL -
Thomas W. Adams Steve Arnosky Diane Brown Wilhelm Maureen Donker Marty A. Wazbinski
CONSIDERATION OF ADOPTING CONSENT AGENDA ITEMS: All resolutions marked with an asterisk are considered to be routine and will be enacted by one motion. There will be no separate consideration of these items unless a Council member or citizen so requests during the discussion stage of the “Motion to adopt the Consent Agenda as indicated”. If there is even a single request the item will be removed from the consent agenda without further motion and considered in its listed sequence in regular fashion. APPROVAL OF MINUTES: 1.
* Approve minutes of the January 11 regular and January 16 special City Council meetings. TISDALE
PROCLAMATIONS, AWARDS, RECOGNITIONS, PRESENTATIONS: PUBLIC HEARINGS: 2.
Amendments to the 2015-16 Community Development Block Grant budget (also see material sent in the December 14 agenda packet). KAYE
3.
Amendment to the 2015-16 Currie Municipal Golf Course Fund budget to increase revenues and expenditures by $30,000 for tree removal and reforestation, and demolition of the old driving range building and restoration of the surrounding area (also see material sent in the January 11 agenda packet). KEENAN
PUBLIC COMMENTS, IF ANY, BEFORE CITY COUNCIL. (Please sign up with City Clerk before meeting). This is an opportunity for people to address the City Council on issues that are relevant to Council business but are not on the agenda. ORDINANCE AMENDMENTS: RESOLUTIONS: 4.
Receiving and filing the Comprehensive Annual Financial Report and Single Audit Report for the year ended June 30, 2015. KEENAN
5.
Receiving a Payment in Lieu of Taxes request from Lockwood Development and referring said request to the Housing Commission for study and recommendation. KEENAN
6.
Receiving and filing the 2016-17 Construction Priorities Report. MCMANUS
7.
Receiving and filing a staff report to the City Council regarding outcomes of the 2016 City Council Planning Retreat. LYNCH
Considering purchases and contracts: 8.
* Fire Station 1 Renovations. COUGHLIN
9.
* 2016 Surface Treatment & Crack Sealing Program; Contract No. 4. MCMANUS
10.
* 2016 Blarney and Leeway Dr. Reconstruction; Contract No. 05. MCMANUS
Setting a public hearing: 11.
* Conditional Use Permit No. 56 - to consider a request for review and approval of a Conditional Land Use for a single family dwelling in a RB Multiple-Family Residential zoning district located at 309 Sam Street (2/15). KAYE
NEW BUSINESS:
TO CONTACT THE CITY WITH QUESTIONS OR FOR ADDITIONAL INFORMATION: Citizen Comment Line: City of Midland website address: City of Midland email address: Government Information Center:
837-3400 www.cityofmidlandmi.gov
[email protected] located near the reference desk at the Grace A. Dow Memorial Library
Attached documents for item Maureen Donker, Mayor
Attached documents for item * Approve minutes of the January 11 regular and January 16 special City Council meetings. TISDALE
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Attached documents for item Amendments to the 2015-16 Community Development Block Grant budget (also see material sent in the December 14 agenda packet). KAYE
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SUMMARY REPORT TO CITY MANAGER for City Council Meeting of 1-25-2016
SUBJECT:
Amendments to 2015-16 Community Development Block Grant Budget
HOUSING COMMISSION PUBLIC HEARING: December 7, 2015 HOUSING COMMISSION ACTION: Recommendation of approval RESOLUTION SUMMARY: THIS RESOLUTION WILL APPROVE THE PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET AMENDMENTS FOR FISCAL YEAR 2015-16, AND WILL FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE THE SUBRECIPIENT AGREEMENTS DESCRIBED HEREIN. ITEMS ATTACHED AND PREVIOUSLY TRANSMITTED: 1. Letter to City Manager setting forth Housing Commission action. 2. Resolution to approve proposed 2015-16 CDBG Budget Amendments. 3. Staff Report to Housing Commission dated December 2, 2015 (see packet from December 14, 2015) 4. Housing Commission minutes of December 7, 2015 (see packet from December 14, 2015). CITY COUNCIL ACTION: 1. Public hearing is required. Date: January 25, 2016. 2. 3/5 vote required to approve resolution.
C. Bradley Kaye, AICP, CFM Assistant City Manager for Development Services /grm
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City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.cityofmidlandmi.gov
January 18, 2016
Jon Lynch, City Manager City Hall - 333 West Ellsworth Street Midland, Michigan 48640 Dear Mr. Lynch: On April 27, 2015, Midland City Council approved the Community Development Block Grant (CDBG) budget for fiscal year 2015-16. Since that approval, staff has been notified by one organization that they are respectfully declining their awarded funding. Additionally, actual carry-over funds that remained at the end of the last fiscal year have since been determined, resulting in additional funding that must be programmed. The following will outline the proposed budget amendments to account for these two changes. Caregiving Network – Declined Funds Caregiving Network has informed staff that the organization respectfully declines the $25,000 awarded to the organization for bathroom facility renovations. This decline is the result of recent strategic planning by the organization that led the group to pursue other programing needs. The awarded $25,000 must now be reprogrammed to another eligible CDBG activity. Carry-Over Funds Fiscal year 2014/15 ended with additional carry-over funds beyond those projected during the budget process that concluded in May of 2015. These additional funds were the result of several funded projects that were unable to be completed by the agencies awarded the funds, as well as two other projects coming in under budget. As a result of these changes, an additional $103,087 in funding was carried over and is now required to be programmed. Available Funding – Fiscal Year 2015/16 From a revenue perspective, the City received $233,381 in entitlement Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2015/16 as anticipated. A further $5,000 in program income was received during the last fiscal year and is available for programming in the current fiscal year. These two numbers remain unchanged from the current adopted budget. The total revenue results from these two amounts, added to the now-available carry-over funds ($183,327), equates to $421,708 in total available revenue to be used for CDBG eligible activities. Proposed Budget Changes Attached are the proposed CDBG budget amendments for fiscal year 2015-16, as presented to the Housing Commission on December 7, 2015. The staff report sets forth the proposed expenditures and also includes comments on each of the proposed amendments. The table attached to that report (Attachment A) shows the proposed amendments compared to the current adopted budget. Following deliberation on the proposed CDBG budget amendments during their meeting on December 7, 2015, the Housing Commission took the following action: It was moved by Commissioner Burgess and seconded by Commissioner Wright to recommend City Council approval of the proposed 2015/16
2015-16 CDBG Budget Amendments
December 8, 2015
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Community Development Block Grant budget amendments as presented in the staff report dated December 2, 2015. Vote on the motion: YEAS: NAYS: ABSENT:
Burgess, Mortensen, and Wright None Garchow and Loose
The motion was approved 3-0. Requirements of the CDBG program are such that a 30-day public comment period must be given before holding a public hearing on any proposed award changes. On December 14, 2015, a resolution setting the date of January 25, 2016 for the required public hearing was approved by Council, allowing for the 30day period. Additional requirements of the CDBG program include that subrecipient agreements must be executed between the City and the organizations receiving an award. These agreements formalize the CDBG program requirements for participating organizations and the award amount. The new and amended subrecipient agreements associated with the proposed budget amendments have been submitted to and approved by the City Attorney as to form and content. A resolution to approve the proposed CDBG budget amendments and to authorize the Mayor and City Clerk to sign the subrecipient agreements on behalf of the City is attached for Council consideration. Following City Council approval, the program amendments must then be submitted to HUD prior to the projects proceeding. All funded projects must be completed ahead of the end of the fiscal year. Respectfully,
C. Bradley Kaye, AICP, CFM Assistant City Manager for Development Services /grm
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City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.cityofmidlandmi.gov
BY COUNCILMAN WHEREAS, on April 27, 2015, Midland City Council approved the Community Development Block Grant (CDBG) budget for fiscal year 2015-16; and WHEREAS, the City of Midland has received $233,381 in CDBG funds for fiscal year 2015-16 from the U.S. Department of Housing and Urban Development; and WHEREAS, the City received $5,000 in program income during the last fiscal year; and WHEREAS, fiscal year 2014-15 ended with an additional $103,087 in carry-over funding beyond what was projected at the time of budget adoption, equating to a total of $183,327 in available fund balance; and WHEREAS, on December 7, 2015, the Midland City Housing Commission unanimously recommended approval of the proposed amendments to the CDBG budget; and WHEREAS, a 30-day public comment period was advertised and initiated on December 23, 2015 to provide an opportunity for public input on the proposed expenditure of said funds; and WHEREAS, a public hearing was held by the City Council on January 25, 2016 at 7:00 p.m. in the City Council Chambers, City Hall, 333 West Ellsworth Street, Midland, Michigan, for the purpose of receiving public comment on the proposed amendments to the 2015-16 CDBG Budget; and WHEREAS, the conditions for providing such funds require entering into a subrecipient agreement with these organizations to ensure the provision of these services to low- and moderate-income households; now therefore RESOLVED, that the City Council hereby adopts the proposed amendments to the 2015-2016 CDBG Budget, as set forth in the attached table (Attachment A); and RESOLVED FURTHER, that the Mayor and City Clerk are authorized to execute the subrecipient agreements, as approved by the City Attorney, on behalf of the City. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
_____________________________________ Selina Tisdale, City Clerk
2015-16 CDBG Budget Amendments
January 25, 2016
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Attachment A Community Development Block Grant Proposed Budget Amendments 2015-16 Adopted Budget
REVENUE 2015-16 Entitlement Carry-Over (Fund Balance) 2014-15 Program Income Subtotal
Proposed Amendments $ 233,381.00 $ 183,327.00 $ 5,000.00 $ 421,708.00
$ $ $ $
233,381.00 80,000.00 5,000.00 318,381.00
EXPENDITURES Planning/Administration
$
43,000.00
$
43,000.00
Housing Rehabilitation Administration Zero-Interest Loans Midland Area Homes - Minor Repairs
$ $ $
10,000.00 20,884.00 15,000.00
$ $ $
10,000.00 47,211.00 25,000.00
$ $
20,000.00 65,884.00
$ $
20,000.00 102,211.00
Public Facility Improvements Big Brothers Big Sisters GLBR – Window Remodel Caregiving Network – Restroom Additions Cleveland Manor – Parking Lot Lighting Washington Woods – East Elevator Upgrades Shelterhouse – Bathroom Remodel Washington Woods – West Boiler Subtotal
$ $ $ $ $ $ $
17,000.00 25,000.00 38,000.00 80,000.00 - .00 - .00 160,000.00
$ $ $ $ $ $ $
17,000.00 - .00 43,000.00 80,000.00 30,000.00 40,000.00 210,000.00
Public Services Legacy Center - Literacy Services Reece Endeavor - Dial-a-Ride Tickets Legal Services - Fair Housing Testing West Midland Family Center - Family Ties Cancer Services – Transportation
$ $ $ $ $
4,000.00 2,997.00 3,500.00 10,000.00 7,500.00
$ $ $ $ $
4,000.00 2,997.00 3,500.00 10,000.00 7,500.00
$ $
7,500.00 35,497.00
$ $
7,500.00 35,497.00
$
4,000.00
$
4,000.00
$ $
2,000.00 6,000.00
$ $
2,000.00 6,000.00
.00
$
15,000.00
Habitat for Humanity - NRI Home Improvement Subtotal
MCFOAR – Housing/Work Assistance Subtotal Architectural Barrier Removal Washington Woods - Bathtub Cut-ins Midland Area Homes - Accessibility Ramps Subtotal Affordable Housing Down Payment Assistance
$
Contingency
$
8,000.00
$
10,000.00
$
318,381.00
$
421,708.00
GRAND TOTAL
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Attached documents for item Amendment to the 2015-16 Currie Municipal Golf Course Fund budget to increase revenues and expenditures by $30,000 for tree removal and reforestation, and demolition of the old driving range building and restoration of the surrounding area (also see mater
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SUMMARY REPORT TO MANAGER For City Council Meeting of January 25, 2016 SUBJECT:
Amending the 2015/16 Currie Municipal Golf Course Fund budget to provide budgetary authorization to spend gifts from the Mary C. Currie Foundation.
INITIATED BY: David A. Keenan, Assistant City Manager RESOLUTION SUMMARY: This resolution would amend the 2015/16 Currie Municipal Golf Course Fund budget to increase revenue and expenses by $30,000, to allow spending of gifts received from the Mary C. Currie Foundation.
ITEMS ATTACHED: 1. Letter of Transmittal 2. Resolution CITY COUNCIL ACTION: 3/5 affirmative vote required for adoption
__________________________________ David A. Keenan, Assistant City Manager
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City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
TO:
Jon Lynch, City Manager
FM:
David A. Keenan, Assistant City Manager
DT:
January 20, 2016
RE:
Amending the 2015/16 Currie Municipal Golf Course Fund Budget
As a result of the emerald ash borer arriving in our community a few years back, the Currie Municipal Golf Course (the Course) has many dead trees throughout the property. The placement of some of these dead trees is relevant to not only the aesthetics of the Course, but also to the playability of some of the holes, and the safety of the golfers. While the grounds maintenance staff has been making some headway in the area of tree removal, their resources are somewhat limited and some tree removal will need to be contracted. Tree replacement is still in the planning stage. The Mary C. Currie Foundation has generously given the Course $10,000 to help facilitate the tree removal and the reforestation process. In the fall of 2014 the driving range was relocated from the southwest part of the property to an area formerly occupied by the East Course Front Nine. In May of 2015 the driving range opened at its new location. As a planned cost saving measure, the former driving range location has been allowed to return to nature. Also, as a result of the relocation, the old point-of-sale building that needed significant repairs can now be torn down and the surrounding area can be restored. The Mary C. Currie Foundation has provided a second gift of $20,000 to help defray these costs. In order to spend these two gifts, it is necessary to amend the 2015/16 Currie Municipal Golf Course Fund budget. Amending a budget requires Council involvement at two separate meetings. The first meeting is to set the date for a public hearing, which was done on January 11, 2016. The second is to hold the public hearing, which is scheduled to be held January 25, 2016. The attached resolution for City Council’s consideration would amend the 2015/16 Currie Municipal Golf Course Fund budget to increase revenue and expenses by $30,000, to provide budgetary authorization to spend the gifts received from the Mary C. Currie Foundation.
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City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
BY COUNCILMAN
WHEREAS, in accord with Sections 5.11, 11.4, and 11.6 of the Charter of the City of Midland, and after having given proper legal notice, and having conducted a public hearing on Monday, January 25, 2016, on the proposal to amend the 2015/16 Currie Municipal Golf Course Fund budget to increase revenue and expenses by $30,000 to provide budgetary authorization to spend the gifts received from the Mary C. Currie Foundation; now therefore RESOLVED, that the 2015/16 Currie Municipal Golf Course Fund budget shall be amended as discussed in the aforementioned paragraph to allow spending of the gifts received from the Mary C. Currie Foundation.
YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all of the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
___________________________________ Selina Tisdale, City Clerk
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Attached documents for item Receiving and filing the Comprehensive Annual Financial Report and Single Audit Report for the year ended June 30, 2015. KEENAN
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SUMMARY REPORT TO MANAGER For City Council Meeting of January 25, 2016
SUBJECT:
Receiving and filing the Comprehensive Annual Financial Report and Single Audit Report for the year ended June 30, 2015.
INITIATED BY: David A. Keenan, Assistant City Manager RESOLUTION SUMMARY: This resolution shall receive and file for public examination the Comprehensive Annual Financial Report and the Single Audit Report for the City of Midland for the year ended June 30, 2015. ITEMS ATTACHED: 1. 2. 3. 4. 5. 6.
Letter of Transmittal Resolution Comprehensive Annual Financial Report Auditor communication letter to City Council Staff response to auditor communication Single Audit Report
CITY COUNCIL ACTION: 3/5 affirmative vote required for adoption
________________________________________________ David A. Keenan, Assistant City Manager
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City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
TO: Jon Lynch, City Manager FM: David A. Keenan, Assistant City Manager DT: January 20, 2016 RE: Presentation of 2014-15 Financial Audit
The City is required by its Charter and the State of Michigan to have an annual financial audit, performed by independent auditors. In addition, because the City receives federal financial assistance, it is required to have a compliance audit, also known as a single audit. The City’s financial and compliance audits for the year ended June 30, 2015 were performed by Yeo & Yeo PC, CPAs. Jamie Rivette, Principal, from Yeo & Yeo PC, CPAs will be in attendance at the January 25, 2016, Council meeting to present the City’s annual audits. A copy of the Comprehensive Annual Financial Report and Single Audit Report are provided. The auditors will use a series of graphs for their presentation.
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City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
BY COUNCILMAN RESOLVED, that the Comprehensive Annual Financial Report and the Single Audit Report of the City of Midland for the year ended June 30, 2015 are hereby received and ordered filed for public examination. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
_________________________________ Selina Tisdale, City Clerk
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Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015
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City of Midland, Michigan Comprehensive Annual Financial Report June 30, 2015
Prepared by the Finance Department
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Section
Table of Contents
Page
Introductory Section Letter of Transmittal GFOA Certificate of Achievement Organizational Chart List of Principal Officers
i v vi vii
Financial Section 1
Independent Auditors’ Report
1–1
2
Management’s Discussion and Analysis
2–1
3
Basic Financial Statements Government-wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of Fund Balances of Governmental Funds to Net Position of Governmental Activities Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Proprietary Funds Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Statement of Cash Flows
3–1 3–3
3–4 3–6 3–7 3–9 3 – 10 3 – 12 3 – 14
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Section 3
Table of Contents
Basic Financial Statements Fiduciary Funds Statement of Net Position Statement of Changes in Net Position Notes to Financial Statements
4
5
Page
3 – 16 3 – 17 3 – 18
Required Supplementary Information Budgetary Comparison Schedule General Fund Major Street Fund
4–1 4–3
Municipal Employees Retirement System Schedule of Employer Contributions Schedule of Changes in Net Pension Liability and Related Ratios Schedule of Employers’ Net Pension Liability
4–5 4–6 4–7
Police and Fire Retirement System Schedule of Changes in Net Pension Liability and Related Ratios Schedule of Net Pension Liability Schedule of Contributions Schedule of Investment Returns
4–8 4–9 4 – 10 4 – 11
Other Post Employment Benefits Schedule of Funding Progress Schedule of Employer Contributions
4 – 12 4 – 13
Note to the Required Supplementary Information
4 – 14
Other Supplementary Information Nonmajor Governmental Funds Fund Descriptions Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balance
5–1 5–2 5–3
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Section 5
6
Table of Contents
Page
Other Supplementary Information Budgetary Comparison Schedule Local Street Fund Center City Authority Fund Stormwater Management Fund Grace A. Dow Memorial Library Fund Community Development Block Grant Fund Dial-A-Ride Fund Downtown Development Authority Fund Midland Community Television Fund Special Activities Fund Midland Housing Fund Debt Service Fund
5–4 5–6 5–7 5–8 5–9 5 – 10 5 – 11 5 – 12 5 – 13 5 – 14 5 – 15
Nonmajor Proprietary Fund Fund Descriptions Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Net Position Combining Statement of Cash Flows
5 – 16 5 – 17 5 – 19 5 – 21
Fiduciary Funds Fund Descriptions Pension and Other Employee Benefit Trust Funds – Statement of Plan Net Position Pension and Other Employee Benefit Trust Funds – Statement of Changes in Plan Net Position Agency Funds – Combining Statement of Changes in Assets and Liabilities
5 – 22 5 – 23 5 – 24 5 – 25
Internal Service Funds Fund Descriptions Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Net Position Combining Statement of Cash Flows
5 – 27 5 – 28 5 – 30 5 – 31
Statistical Section (Unaudited) Section Description Financial Trends
6–1 6–2
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Section 6
Table of Contents
Page
Statistical Section (Unaudited) Net Position by Component Changes in Governmental Net Position Changes in Business-type Net Position Fund Balances – Governmental Funds Changes in Fund Balances – Governmental Funds Revenue Capacity Taxable Value and Assessed Value of Taxable Property Direct and Overlapping Property Tax Revenues Principal Property Taxpayers Property Tax Levies and Collections Debt Capacity Ratios of Outstanding Debt Ratios of General Bonded Debt Outstanding Direct and Overlapping Debt Legal Debt Margin Pledged-Revenue Coverage Demographic and Economic Information Demographic and Economic Statistics Principal Employers Full-time Government Employees Operating Information Operating Indicators Capital Asset Statistics
6–3 6–4 6–6 6–8 6–9 6 – 11 6 – 12 6 – 13 6 – 15 6 – 16 6 – 17 6 – 18 6 – 19 6 – 20 6 – 21 6 – 22 6 – 23 6 – 24 6 – 25 6 – 26 6 – 27 6 – 28 6 – 30
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City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.midland-mi.org
January 15, 2016
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s Discussion and Analysis letter (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditor’s report.
Honorable Mayor, City Council Members, and Citizens of the City of Midland: The Comprehensive Annual Financial Report (CAFR) of the City of Midland, Michigan (the “City”) as of and for the year ended June 30, 2015 is hereby submitted. As required by City Charter and state laws, the basic financial statements as identified in the table of contents were audited by Yeo & Yeo, Certified Public Accountants. Their unqualified opinion is located at the front of the financial section of this report. An unqualified opinion is the best opinion that an organization can receive on its financial statements. It indicates that the auditor’s examination has disclosed no conditions that cause them to believe that the financial statements are not fairly presented in all material respects.
In addition, during the year an audit was performed in accordance with the requirements of the Single Audit Act Amendments of 1996 (P.L. 104-456). The auditor’s reports related to the single audit are issued under separate cover. PROFILE OF THE CITY The City of Midland was incorporated in 1887 and is located near the center of the eastern portion of Michigan’s Lower Peninsula, approximately 120 miles northwest of Detroit. It encompasses approximately 36 square miles of land area and is home to a population of 42,000.
This financial report consists of management’s representations concerning the finances of the City of Midland. Therefore, management assumes full responsibility for the completeness and reliability of the information contained in this report. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with accounting principles generally accepted in the United States (GAAP). Because the cost of internal controls should not outweigh the benefits, the City of Midland’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City Charter calls for a council-manager form of government. The governing body consists of five council members who are elected on a non-partisan basis, one from each of the City’s five wards who in turn choose one of their five to serve as mayor. The City Manager is appointed independently by the City Council and is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing heads of the various departments and all other City employees. An organization chart is included to better illustrate the City’s governmental structure.
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The City provides a full range of services including police and fire protection, community planning and zoning, building inspections, code enforcement, library, sanitation, water and wastewater treatment, construction and maintenance of highways, streets and infrastructure, recreation programs, parks, public transportation and senior housing facilities.
ECONOMIC CONDITION AND OUTLOOK The City is empowered to levy a property tax on both real and personal properties located within its boundaries. Its tax base is 41% residential and 59% commercial, industrial and utility. The three largest taxpayers, The Dow Chemical Company, Dow Corning Corporation, and Midland Cogeneration Venture (MCV) account for 32% of the City’s total taxable value. The City continues to attract new commercial businesses with new restaurant, retail, and office developments at various stages of completion, as well as residential investment. However, the past few years has brought forth a wave of commercial tax appeals that has offset some of the gains of these new developments.
The City reports two blended component units as special revenue funds within the governmental type funds: the Downtown Development Fund and the Center City Authority Fund. Midland is recognized as a safe and vibrant community that offers its residents many economic, cultural, recreation, and educational amenities. Here are some examples of recent recognition the City has received
Top 10 Happiest Cities in Michigan Recognized by homesnacks.net as the 10th happiest City in Michigan.
100 Best Places to Live Livability.com recognized the City of Midland as number 90 in the top 100 best small to mid-sized cities in the U.S.
Residential property values have remained stable, increasing slightly each year since the big decline caused by the 2008 recession. The City’s jobless rate decreased significantly during the past year from 5.1% for FY 2014 to 4.2% for the current year, and compares favorably to the State’s average rate of 5.8%, as well as with the national average of 5.5%. LONG TERM FINANCIAL PLANNING Like most Michigan municipalities, the City has dealt with significant financial challenges since the economic fallout of 2008. For the year ended June 30, 2015, the City’s taxable value is still 7.6% below the 2008 level. Residential taxable value is 1.7% less but has grown in each of the past four years and will increase again next year.
Five-Star Entrepreneurial Support Recognized by University of Michigan Dearborn’s Center for Innovation Research for its best practices geared towards business development.
Best Places to Start A Business in Michigan Midland was ranked the 15th best place to start a business in Michigan, buy Nerdwallet.com. The study considered 128 locations in Michigan of 5,000 population or more.
Best Place to Live in Michigan Onlyinyourstate.com selected Midland as the second best place to live in Michigan.
Investment earnings on cash and cash equivalents was still very low at .2% compared to 5.25% in 2008. Through long term financial and resource planning, the City continues to look for creative and more affordable ways of service delivery. Since 2008 the City has eliminated 46 full-time positions, mostly through attrition and without reducing uniformed public safety positions. Also, employee groups have participated in cost reductions through pay freezes and benefit reductions in order to try to make the cost of providing services more affordable.
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Even still, in order to balance annual budgets the City’s millage rate has trended upwards as shown below (in mills): 2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
12.99
13.94
13.94
14.79
14.79
15.08
15.04
BUDGET CONTROLS The annual budget serves as the foundation for the City’s financial planning and control. By the second Monday of April of each year, the City Manager presents a proposed budget to the City Council for review. The Council holds public hearings and a final budget must be prepared and adopted no later than the fourth Monday in May. The Council approves appropriations on the functional basis, which is the legal level of control. Department heads may transfer funds within their function at their discretion up to $6,000 before requiring City Manager approval. The City Manager can approve all budget transfers except those between different functions, and any transfer from a reserve for contingency account in excess of $25,000, which require City Council approval.
The millage rate for 2015/16 was reduced to 15.00 mills. During this time, all core services have been maintained, and all debt obligations and actuarial determined annual funding requirements for the City’s two defined benefit pension plans, and one defined benefit postemployment health care plan have been funded at 100%. The City has maintained its credit ratings of AA with Standard and Poor’s, and Aa2 with Moody’s, and has maintained a General Fund fund balance goal of $5.1 million. The City is in the finishing stages of updating its long-range capital plan which will help serve as a planning tool for the City’s infrastructure.
All appropriations lapse at year-end except for those specifically approved to be carried forward as part of the year-end encumbrance process.
MAJOR INITIATIVES
City Council adopts budgets for the General Fund and all Special Revenue Funds as required by Michigan statute. In addition, Council also adopts budgets for the debt service fund, and all Enterprise and Internal Service Funds, although not required by the State of Michigan.
For the next fiscal year ending June 30, 2016, City Council provided the following directives, for which the City Budget was created to support:
Maintain public services, with an emphasis on public safety, at the highest level possible under current economic and budget conditions. Do not increase the millage rate supporting general operations by more than ½ of a mill. The unreserved fund balance of the General Fund shall be maintained at $5.1 million. Present a range of options for sidewalk maintenance.
CERTIFICATE OF ACHIEVEMENT For the 26th consecutive year, the Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Midland for its comprehensive annual financial report for the fiscal year ended June 30, 2014. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report, which satisfies both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. iii
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ACKNOWLEDGEMENTS
The preparation of this report was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the Department has our sincere appreciation for the contributions made in the preparation of this report. In closing, the preparation of this document and the accomplishments reported therein would not have been possible without the leadership and support of the Midland City Council. Respectfully submitted,
_________________ Jon Lynch City Manager
____________________ David A. Keenan Assistant City Manager
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v
City of Midland, Michigan Organizational Chart Citizens of Midland City Council
City Attorney
City Manager
Advisory Boards and Commissions
Police
Fire
Human Resources
Library
Planning
Engineering
Building
Housing
Barstow Airport
Public Services
Parks & Recreation
Utilities
Fiscal Services
Landfill
Wastewater
Assessing
Treasurer
Storm Water Management
Water
Finance
Purchasing
Renewable Energy Services
Information Services
Clerk
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City of Midland, Michigan List of Principal Officials June 30, 2015 City Council
Ward I
Thomas Adams
Mayor - Ward II
Maureen Donker
Ward III
Steve Arnosky
Ward IV
Diane Brown Wilhelm
Ward V
Marty Wazbinski Administrative Staff
City Manager City Attorney Assistant City Manager for Financial Services Director of Human Resources and Labor Relations City Assessor City Clerk / Director of Community Affairs City Controller City Engineer City Treasurer Chief Building & Electrical Inspector Fire Chief Information Services Manager Library Director Police Chief Public Services Director Purchasing Agent Utilities Director
Jon J. Lynch James O. Branson, III David A. Keenan Carol A. Stone Reid A. Duford Selina M. Tisdale Margaret A. Maday Brian P. McManus Dana C. Strayer John E. Wegner Chris A. Coughlin Tadd H. Underhill Melissa J. Barnard Clifford A. Block Karen A. Murphy Michael L. Meyer Noel D. Bush
vii
3023 Davenport Saginaw, MI 48602 Phone (989) 793-9830 / (800) 968-0010 Fax (989) 793-0186
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Independent Auditors’ Report Management and City Council City of Midland, Michigan Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Midland, Michigan as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise of the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1-1
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Opinions 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, each major fund, and the aggregate remaining fund information of the City of Midland, Michigan as of June 30, 2015 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. Deficit Net Position The City has accumulated an unrestricted deficit in the Civic Arena Fund of $216,416 and the Currie Municipal Golf Course Fund of $687,533 as of June 30, 2015, which has resulted from operating deficits. The deficit and status of the District’s Deficit Elimination Plans that are required by the Michigan Department of Treasury, are disclosed in Note 2. Our opinions are not modified with respect to these matters. Adoption of New Accounting Standards As described in Note 1 to the financial statements, during the year ended June 30, 2015, the Government adopted GASB Statement No. 68 Accounting and Financial Reporting for Pensions, and Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date. Our opinions are not modified with respect to this matter. Change from Previously Issued Financial Statements As described in Note 20 to the financial statements, the City identified an error in the Net Investment in Capital Assets amount for governmental activities reported in the previously issued financial statements, dated December 16, 2015. Our opinion is not modified with respect to this matter. Other Matters: Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of funding progress and analysis and budgetary comparison information, as identified in the table of contents, be presented to supplement the basic financial statements. Such information, 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. 1-2
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Other Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Midland, Michigan’s basic financial statements. The Introductory Section, Other Supplementary Information, as identified in the table of contents, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information, as identified in the table of contents, 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 other supplementary 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 other supplementary information, as identified in the table of contents, is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 15, 2016 on our consideration of City of Midland, Michigan’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Midland, Michigan’s internal control over financial reporting and compliance.
January 15, 2016 Saginaw, Michigan
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City of Midland, Michigan Management’s Discussion and Analysis June 30, 2015
This section of the City of Midland’s annual financial report presents our discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2015. Please read it in conjunction with the transmittal letter, which was provided earlier in this report, and the financial statements which begin on page 3 -1 of this report. FINANCIAL HIGHLIGHTS
The City’s combined total net position is $192.5 million for the fiscal year ended June 30, 2015, compared to $184.8 last fiscal year, as restated. In the City’s governmental activities, revenues generated $52.8 million while expenses, including transfers totaled $48.9 million. In the City’s business-type activities, revenues, including transfers generated $30.4 million while expenses totaled $26.6 million. The total cost of all of the City’s programs, including governmental activities and business-type activities was $73.1 million, up $.8 million from last fiscal year, or 1.1%. Total net position increased by $7.7 million.
During the year the City implemented Governmental Accounting Standards Board Standard 68 – Accounting and Financial Reporting for Pensions (GASB 68). The scope of this Statement addresses accounting and financial reporting for defined benefit pensions that are provided to the employees of state and local governmental employers. The City has two defined benefit pension plans, which are explained in the Notes to the Financial Statements beginning on page 3-39. Simply put, when an employer’s pension plan has accrued pension liabilities that exceed the plan assets that are available to pay those liabilities, the pension plan has a net pension liability.
Previously this liability was not recorded on governmental financial statements. GASB 68 now requires governments to record a net pension liability on their full-accrual financial statements. This impacts not only the government-wide financial statements, but also the proprietary fund financial statements, both of which are explained in more detail later in this document. This change is significant and required to be applied retroactively; therefore, the July 1, 2014 net position beginning balances are restated as shown below: Government-wide Financial Statements Governmental acivities Business-type activities
Beginning Net Position $ $
Change $ $
Beginning Net Position
Proprietary Fund Statements Enterprise Funds Internal service Funds
111,245,675 138,721,193 249,966,868
$ $
126,821,195 17,285,013 144,106,208
Restated Beginning Net Position
(48,621,953) (16,534,472) (65,156,425)
$ $
Restated Beginning Net Position
Change $ $
(16,534,472) (3,981,086) (20,515,558)
62,623,722 122,186,721 184,810,443
$ $
110,286,723 13,303,927 123,590,650
More information on GASB 68 is provided on pages 3-26 and 3-50 of the Notes to the Financial Statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
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City of Midland, Michigan Management’s Discussion and Analysis June 30, 2015
This report also contains required supplementary information and other supplementary information in addition to the basic financial statements.
Fund Financial Statements The fund financial statements provide more detailed information about the City’s most significant funds, not the City as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.
Government-wide financial statements The government-wide statements are designed to provide readers with a broad overview of the City’s finances, as a whole, in a manner similar to a private sector business. The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. The statement of activities presents all of the City’s revenues and expenses, and is reported based on when the underlying event giving rise to the revenue or expense occurs, regardless of when cash is received or paid.
The City of Midland has three types of funds: Governmental Funds – Many of the City’s basic services are included in governmental funds which focus on how cash and other financial assets that can be readily converted into cash flow in and out. The funds also show the balances left at year-end that are available for spending. The governmental funds focus on a short-term view, rather than the long-term focus of the government-wide statements, so additional information is provided after each of the governmental fund statements that explain the relationship or differences between the fund and government-wide statements.
The government-wide statements of the City of Midland are divided into two categories: Governmental Activities – Most of the City’s basic services are included here, such as police, fire, public works, sanitation, parks and recreation, community development, library, transportation, and general administration. Property taxes, state shared revenue, and charges for services finance most of these activities.
The City maintains 14 individual governmental funds. Separate information is presented for the General and Major Street Funds, both considered to be “major” funds. Data from the other 12 governmental funds, considered to be “nonmajor” funds, are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
Business-type Activities – The City charges fees to customers to recover all or a significant portion of certain services it provides. These business-type activities include water distribution, wastewater collection, landfill, golf course, civic arena, senior citizen housing, and parking.
The City adopts an annual budget for each of its governmental funds, except for the Cemetery Fund. Budgetary comparison statements have been provided herein to demonstrate compliance with those budgets.
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City of Midland, Michigan Management’s Discussion and Analysis June 30, 2015
Proprietary Funds – Proprietary funds are used to report services where the City charges a fee to the customer to recover most or all of the cost of the service rendered. Proprietary funds provide both longand short-term financial information. The two types of proprietary funds are enterprise and internal service funds.
Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City. The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds and internal services funds are presented immediately following the required supplementary information.
Enterprise funds and business-type funds are the same, but the fund statements provide more detail and additional information such as cash flows. Internal service funds are used to report activities that provide supplies and services to the City’s other programs. Examples of internal service funds include the Equipment Revolving Fund and the Information Services Fund.
THE CITY OF MIDLAND AS A WHOLE The City’s total combined net position for the fiscal year ended June 30, 2015 is $192.5 million, made up of $126 million in business-type activities, and $66.5 million in governmental activities.
The proprietary fund financial statements provide separate information for the Water, Wastewater, Sanitary Landfill, and Civic Arena Funds, which are considered to be major funds of the City. The remaining enterprise funds and the internal service funds are each combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the remaining enterprise funds and the internal service funds is provided in the form of combining statements elsewhere in this report.
Due to the implementation of GASB 68, as discussed previously, the combined unrestricted net assets, the part of net assets that can be used to finance day-to-day operations, is a deficit balance of negative $17.2 million, made up of $22.6 million for business-type activities, and a negative $39.8 million for governmental activities. It is important to note that while the implementation of GASB 68 has created these deficits, the impact has primarily been an increase in long-term liabilities. Working capital (current assets minus current liabilities) is considered a measure of liquidity and an indication of financial strength. GASB 68 has little impact on working capital. The City’s working capital has increased from $78.5 million to $82.6 million during the year, $38.5 million for governmental activities and $13.6 million for business-type activities.
Fiduciary Funds - Fiduciary funds are used to account for the resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.
The following table shows comparisons of total assets, total liabilities, and total net position (in millions) in a condensed format as of June 30, 2015 and 2014. The 2014 totals are as originally reported in the prior year’s financial report and do not reflect retroactive restatement due to the implementation of GASB 68. The 2015 totals do reflect the implementation as previously discussed.
Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the financial statements.
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City of Midland, Michigan
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Management’s Discussion and Analysis June 30, 2015
City of Midland Net Position (in millions of dollars) Governmental Activities 2015 2014 Current and other assets Capital assets Total assets Deferred outflows Total assets and deferred outflows
$
41.3 98.3 139.6 4.5 144.1
$
40.7 94.7 135.4 135.4
City of Midland Change in Net Position (in millions of dollars)
Business-type Activities 2015 2014 $
47.6 115.3 162.9 1.5 164.4
$
45.1 114.5 159.6 159.6
2015 $
Total
88.9 213.6 302.5 6.0 308.5
$
2014
2.8 74.8 77.6
3.5 20.7 24.2
3.5 34.9 38.4
2.6 18.2 20.8
6.3 109.7 116.0
6.1 38.9 45.0
Net position: Net investment in capital assets Restricted Unrestricted Total net position
93.4 12.9 (39.8) 66.5
89.6 12.8 8.8 111.2
103.4 22.6 126.0
101.6 3.5 33.7 138.8
196.8 12.9 (17.2) 192.5
191.2 16.3 42.5 250.0
$
$
$
$
$
Revenue Program Revenue: Charges for services Operating grants and contributions Capital grants and contributions General Revenue: Property taxes Intergovernmental Investment earnings Other revenue Total revenue
85.8 209.2 295.0 295.0
Current liabilities Non-current Total liabilities
$
Governmental Activities 2015 2014
Program Expenses General government Public safety Public works Sanitation Community development Parks and recreation Library / community television Airport Transportation Other Water Wastewater Landfill Civic Arena Senior housing Golf course Parking system Total expenses Change in net position before transfers Transfers Change in net position Net position - beginning RESTATEMENT - GASB 68 Net position - ending
The City’s combined total net position increased by $7.7 million during the current fiscal year. Governmental activities increased by $3.9 million while business-type activities increased by $3.8 million. This is illustrated in the next table. The restatement due to GASB 68 is identified separately. Governmental Activities The City’s total governmental revenue is $52.8 million, a decrease of $2 million from the prior year, mostly due to a reduction in outside contributions. Total expenses, including transfers, increased by $1.6 million, or about 3 percent. Approximately half of this is due to increases to labor costs, while the balance is from Internal Service Fund activity.
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$
$
3.3
$
3.6
Business-type Activities 2015 2014
$
25.9
$
25.6
Total 2015
$
29.2
2014
$
29.2
6.0
6.9
-
-
6.0
6.9
1.6
2.3
0.5
1.5
2.1
3.8
37.4 3.4 0.1 1.0 52.8
37.6 3.3 0.1 1.0 54.8
0.1 1.5 28.0
0.2 0.3 27.6
37.4 3.4 0.2 2.5 80.8
37.6 3.3 0.3 1.3 82.4
3.9 16.6 8.4 3.2 1.1 5.2 4.9 0.4 2.0 0.8 46.5
4.1 15.6 9.2 3.0 1.0 4.7 4.9 0.4 1.8 0.9 45.6
10.3 6.1 3.6 1.3 3.9 1.2 0.2 26.6
10.4 6.1 3.4 1.4 3.9 1.3 0.2 26.7
3.9 16.6 8.4 3.2 1.1 5.2 4.9 0.4 2.0 0.8 10.3 6.1 3.6 1.3 3.9 1.2 0.2 73.1
4.1 15.6 9.2 3.0 1.0 4.7 4.9 0.4 1.8 0.9 10.4 6.1 3.4 1.4 3.9 1.3 0.2 72.3
6.3 (2.4) 3.9 62.6 66.5
9.2 (1.8) 7.4 103.8 (48.6) $ 62.6
1.4 2.4 3.8 122.2 $ 126.0
0.9 1.8 2.7 136.0 (16.5) $ 122.2
7.7 7.7 184.8 $ 192.5
10.1 10.1 239.8 (65.1) $ 184.8
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City of Midland, Michigan Management’s Discussion and Analysis June 30, 2015
Business-type Activities
General Fund Budgetary Highlights
Net position for business-type activities increased by $3.8 million during the year ended June 30, 2015, compared to a $2.7 million increase last year.
The General Fund adopted budget included using $2.6 million of available fund balance over the City Council’s target balance of $5.1 million to prevent reductions in service delivery or an increase to the millage rate. Council amended the General Fund budget in May of 2015 to change the planned reduction to be $2.9 million.
Total revenue, including transfers, increased by $1 million, mainly due to significant insurance proceeds to replace damaged property within the Landfill and Wastewater enterprise funds. Total expenses decreased by $.1 million, or about 4/10’s of one percent.
At year-end, actual revenue was $244,773 short of budget, due to a $1 million federal grant that was only 54% earned by fiscal year-end. Actual expenditures were $4.8 million less than budget. About $3.2 million of the expenditure savings is delayed expenditures that will be encumbered into 2015-16, while the balance is due to additional budgetary savings realized during the year.
THE CITY OF MIDLAND’S FUNDS Analysis of the City of Midland’s major funds begins on page 3-4, following the government-wide financial statements. The fund financial statements provide detailed information about the most significant funds, not the City as a whole. Funds are created to help manage money for specific purposes, as well as show accountability for certain activities, such as specific property tax millages and restricted receipts from Federal and State sources.
CAPITAL ASSET AND DEBT ADMINISTRATION At June 30, 2015, the City of Midland had $213.6 million invested in a broad range of capital assets including land, buildings, police and fire equipment, water and sewer lines, roads, sidewalks, and other infrastructure, net of debt. Last year this total was $209.2 million. Additional information about the City’s capital assets is presented in Note 1 and Note 6 of the Notes to Financial Statements.
The General Fund is the City’s largest fund and one of two governmental funds that is considered a major fund. It pays for most of the City’s governmental services. Its major components of revenue are property taxes and state shared revenue. The single largest government service provided is public safety, accounting for 46% of General Fund expenditures. For the year ended June 30, 2015, General Fund financing sources exceeded its financing uses by $1.7 million, increasing its ending fund balance to $12.9 million. The Major Street Fund ending fund balance decreased by $836,244, due to a large road construction program for the fiscal year that was budgeted to use a portion of fund balance. GASB 68 does not impact Governmental Funds as they are not reported on a full-accrual accounting basis.
At June 30, 2015, the City of Midland’s total bonded indebtedness was $27.9 million, all backed by the full faith and credit of the government. Additional information about the City’s indebtedness is presented in Note 1 and Note 10 of the Notes to Financial Statements. The City maintains an AA rating with Standard and Poor’s and an Aa2 rating with Moody’s for the issuance of general obligation debt. These ratings place City of Midland’s debt in the range of investment grade bonds of high quality and upper medium quality, respectively.
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City of Midland, Michigan Management’s Discussion and Analysis June 30, 2015
CURRENT ECONOMIC EVENTS
REQUESTS FOR INFORMATION
One of the world’s largest chemical manufactures, also the City’s largest employer and taxpayer, The Dow Chemical Company (Dow), recently announced the acquisition of Dow Corning, the City’s third largest taxpayer. Dow Corning has significant operations in the City of Midland and their corporate headquarters in a neighboring township. Formerly Dow held only a 50% interest in Dow Corning. Details regarding the impact of this acquisition are yet to be released. In addition, Dow has also recently released news of a 50-50 merger with DuPont, also one of the world’s largest chemical manufacturers. While this merger was unanimously approved by the boards of both corporations, it still needs to obtain shareholder and regulatory approval. Should that happen, the new corporation, DowDuPont will be split into three independent publicly traded corporations. The largest of these three corporations will maintain operations and corporate headquarters in the City Midland. Other details about the merger impact are unknown at this time.
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning the information provided in this report, or requests for additional financial information, should be addressed to the Finance Department at the Midland City Hall, 333 W. Ellsworth Street, Midland, MI 48640. Finance Department staff can be reached at 989-837-3322 or at
[email protected]. Additional information can be obtained at the City’s website, www.midlandmi.org.
The City of Midland continues to be a place of interest to commercial and residential developers. Despite the announcement of layoffs last year by two of the City’s larger employers, the housing market continues to slowly recover with new housing developments planned or under construction. National chains continue to expand their businesses in the City of Midland market, and a five-story, $23 million mixed-used redevelopment is currently under construction in Downtown Midland. The City will continue to budget conservatively, utilizing multi-year planning, and remain proactive in its efforts to prepare for future challenges, in order to continue to provide the services that the Midland Community expects.
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City of Midland, Michigan Statement of Net Position June 30, 2015 Primary Government Governmental Activities Assets Cash and cash equivalents Investments Receivables Taxes Trust deeds Customers Special assessments Accounts and contracts Accrued interest Due from other units of government Internal balances Inventories Prepaid items Restricted assets Cash and investments Assets held for resale Investment in joint venture Capital assets not being depreciated Capital assets, net of accumulated depreciation
$
40,951,519 6,922 1,231,745 262,662 424,846 2,122,678 9,508 2,229,368 (8,641,535) 1,043,365 675,204
Total assets Deferred outflows of resources Deferred amount on debt refunding Deferred amount of pension expense related to net pension liability - MERS Deferred amount of pension expense related to net pension liability - police and fire Total deferred outflows of resources Total assets and deferred outflows or resources
See Accompanying Notes to the Financial Statements 3-1
Business-type Activities $
18,962,886 397,591
Total $
59,914,405 397,591
3,025,961 7,653 77,211 4,005 8,641,535 648,535 27,924
6,922 1,231,745 3,288,623 432,499 2,199,889 13,513 2,229,368 1,691,900 703,128
225,000 771,081 9,714,179 88,584,876
3,514,556 12,234,368 5,650,712 109,660,670
3,514,556 225,000 13,005,449 15,364,891 198,245,546
139,611,418
162,853,607
302,465,025
2,640,115 1,861,968
288,830 1,272,327 -
288,830 3,912,442 1,861,968
4,502,083
1,561,157
6,063,240
144,113,501
164,414,764
308,528,265
City of Midland, Michigan Statement of Net Position June 30, 2015 Primary Government Governmental Activities Liabilities Accounts payable Accrued and other liabilities Due to other units of government Accrued interest Deposits Unearned revenue Accrued interest Guarantee deposits Noncurrent liabilities Net pension liability - MERS Net pension liability - police and fire Debt due within one year Debt due in more than one year
$
Total liabilities Net position Net investment in capital assets Restricted (expendable) for Encumbrances Major street Local street Center city authority Grace A. Dow memorial library Downtown development authority Community development block grant Dial-A-Ride Midland housing Special activities Debt service Cemetery operations Unrestricted (deficit) Total net position
$
See Accompanying Notes to the Financial Statements 3-2
2,065,079 513,429 1,545 31,406 73,185 169,631 -
Business-type Activities $
2,329,567 63,324 448,849 430,163 37,541 93,250
Total $
4,394,646 576,753 1,545 31,406 522,034 599,794 37,541 93,250
37,397,665 18,036,755 3,322,726 16,037,864
18,022,706 1,947,683 15,016,862
55,420,371 18,036,755 5,270,409 31,054,726
77,649,285
38,389,945
116,039,230
93,387,248
103,416,149
196,803,397
7,405 4,775,242 3,481,221 10,891 36,468 864,299 1,277,106 7,329 388,966 73,824 7,405 1,957,505 (39,810,693)
22,608,670
7,405 4,775,242 3,481,221 10,891 36,468 864,299 1,277,106 7,329 388,966 73,824 7,405 1,957,505 (17,202,023)
66,464,216
$
126,024,819
$
192,489,035
City of Midland, Michigan
Receiving and fi... - 28 of 189
Statement of Activities For the Year Ended June 30, 2015 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business-type Activities Activities
Program Revenues Expenses Functions/Programs Primary government Governmental activities General government Public safety Public works Sanitation Community and economic development Parks and recreation Library and community television Airport Transportation Property tax appeals Interest on long-term debt
$
Total governmental activities Business-type activities Water Wastewater Sanitary Landfill Civic Arena Senior Housing Currie Municipal Golf Course Parking Total business-type activities Total primary government
$
3,887,452 16,623,855 8,409,654 3,245,915
$
86,745 996,278 38,274
Capital Grants and Contributions
Operating Grants and Contributions
Charges for Services
$
112,186 116,845 4,142,677 -
$
567,058 204,755 -
$
(3,775,266) $ (15,853,207) (3,065,944) (3,207,641)
-
$
Total
(3,775,266) (15,853,207) (3,065,944) (3,207,641)
1,083,657 5,196,202 4,887,711 361,345 1,961,687 315,967 506,836
4,475 412,815 1,395,346 210,738 108,435 -
372,622 10,230 94,969 1,144,442 -
642,200 110 216,423 -
(706,560) (4,130,957) (3,397,396) (150,497) (492,387) (315,967) (506,836)
-
(706,560) (4,130,957) (3,397,396) (150,497) (492,387) (315,967) (506,836)
46,480,281
3,253,106
5,993,971
1,630,546
(35,602,658)
-
(35,602,658)
10,260,420 6,052,261 3,570,855 1,339,902 3,946,251 1,204,110 193,266
11,409,971 5,984,316 2,933,645 1,099,398 3,597,532 815,132 94,534
15,284 -
258,500 163,345 89,800 -
-
1,408,051 95,400 (637,210) (240,504) (333,435) (299,178) (98,732)
1,408,051 95,400 (637,210) (240,504) (333,435) (299,178) (98,732)
26,567,065
25,934,528
15,284
511,645
-
(105,608)
(105,608)
(105,608)
(35,708,266)
73,047,346
$
29,187,634
$
6,009,255
$
(35,602,658)
2,142,191
General revenues Property taxes, levied for general purposes Property taxes, levied for Center City Authority Property taxes, levied for Downtown Development Authority Property taxes, levied for debt service Property taxes, levied for pension savings Other tax related revenue State shared revenue, unrestricted Unrestricted investment earnings Gain on sale of capital assets Insurance proceeds Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - beginning of year, as restated Net position - end of year
See Accompanying Notes to the Financial Statements 3-3
$
31,412,062 14,191 488,949 678,313 2,646,988 2,197,581 3,399,564 42,812 258,664 717,628 (2,413,600)
37,561 1,735 1,159,886 330,924 2,413,600
31,412,062 14,191 488,949 678,313 2,646,988 2,197,581 3,399,564 80,373 260,399 1,159,886 1,048,552 -
39,443,152
3,943,706
43,386,858
3,840,494
3,838,098
7,678,592
62,623,722
122,186,721
184,810,443
66,464,216
$
126,024,819
$
192,489,035
City of Midland, Michigan
Receiving and fi... - 29 of 189
Governmental Funds Balance Sheet June 30, 2015 General Fund
Assets Cash and cash equivalents Receivables - net of allowances for uncollectibles: Taxes Trust deeds Accounts and contracts Accrued interest Due from other units of government Due from other funds Inventories Prepaid items Assets held for resale Total assets Liabilities Accounts payable Due to other funds Due to other units of government Deposits Unearned revenue
$ 12,250,179
Deferred inflows of resources Grants Customers Trust deeds State shared revenue
$
6,369 47,222 377,360 3,821 1,093,828 55,833 9,634 -
4,950,736
Total Governmental Funds
$
9,155,888
$ 26,356,803
553 1,184,523 488,840 2,067 560,334 102,583 152,847 -
6,922 1,231,745 873,149 6,818 2,229,368 102,583 208,680 9,634 225,000 $ 31,250,702
6,949 930 575,206 225,000
$ 13,844,246
$
5,758,821
$
11,647,635
$
$
595,258 87,220
$
582,012 102,583 28,210 32,374
265,450 1,545 44,975 50,037 362,007
Total liabilities
Major Street Fund
Nonmajor Governmental Funds
682,478
$
1,442,720 102,583 1,545 73,185 169,631
745,179
1,789,664
1,216 561,963
-
3,029 188,270 1,184,523 -
4,245 188,270 1,184,523 561,963
Total deferred inflows of resources
563,179
-
1,375,822
1,939,001
Total liabilities and deferred inflows of resources
925,186
2,121,001
3,728,665
See Accompanying Notes to the Financial Statements 3-4
682,478
City of Midland, Michigan
Receiving and fi... - 30 of 189
Governmental Funds Balance Sheet June 30, 2015 General Fund
Fund balances Non-spendable Inventories Prepaid items Trust deeds Assets held for resale Restricted for Major street Local street City center authority Grace A. Dow Memorial Library Downtown development authority Community development block grant Dial-A-Ride Midland Housing Special activities Debt service Cemetery operations Committed Contingencies Future year expenditures Assigned Unassigned
$
55,833 9,634 47,222 -
Major Street Fund
$
-
Total fund balances Total liabilities, deferred inflows of resources and fund balances
225,000
Nonmajor Governmental Funds
Total Governmental Funds
$
$
152,847 -
208,680 9,634 47,222 225,000
4,550,242 -
3,481,221 10,891 36,468 864,299 92,583 4,300 47,849 73,824 7,405 1,957,505
4,550,242 3,481,221 10,891 36,468 864,299 92,583 4,300 47,849 73,824 7,405 1,957,505
1,500,000 3,215,292 2,521,867 5,569,212
301,101 -
612,340 2,185,102 -
1,500,000 4,128,733 4,706,969 5,569,212
12,919,060
5,076,343
9,526,634
27,522,037
11,647,635
$ 31,250,702
$ 13,844,246
See Accompanying Notes to the Financial Statements 3-5
$
5,758,821
$
City of Midland, Michigan
Receiving and fi... - 31 of 189
Governmental Funds Reconciliation of Fund Balances of Governmental Funds to Net Position of Governmental Activities June 30, 2015
Total fund balances for governmental funds
$
27,522,037
Total net position for governmental activities in the statement of net position is different because Capital assets net of accumulated depreciation used in governmental activities are not financial resources and therefore are not reported in the funds.
72,311,533
Capital assets not being depreciated used in governmental activities are not financial resources and therefore are not reported in the funds.
9,659,179
Investment in joint ventures are not financial resources and therefore are not reported in the governmental funds.
771,081
Certain receivables are not available to pay for current period expenditures and, therefore are deferred in the funds.
1,939,001
Certain liabilities are not due and payable in the current period and are not reported in the funds. Accrued interest
(107,327)
Deferred outflows (inflows) of resources. Deferred outflow of resources from subsequent pension expense from measurement date - MERS Deferred outflow of resources from subsequent pension expense from measurement date - police and fire
2,333,770 1,861,968
Long-term liabilities applicable to governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Net pension liability - MERS Net pension liability - police and fire Bonds payable Compensated absences
(33,058,249) (18,036,755) (10,696,807) (3,412,687) 15,377,472
Internal service funds are included as part of governmental activities. $
Net position of governmental activities
See Accompanying Notes to the Financial Statements 3-6
66,464,216
Receiving and fi... - 32 of 189
City of Midland, Michigan Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2015 General Fund
Revenues Taxes Licenses and permits Federal grants State revenue sharing Other state grants Local contributions Charges for services Use and admission charges Interest income Rental income Other revenue
$
Total revenues Expenditures Current General government Public safety Public works Sanitation Community and economic development Parks and recreation Library and community television Airport Transportation Property tax appeals Capital outlay Debt service Principal retirement Interest and fiscal charges
31,670,759 451,751 560,293 3,409,205 59,829 738,950 2,269,657 289,388 28,861 105,133 1,026,538
Excess (deficiency) of revenues over (under) expenditures
$
2,197,581 77,378 7,504 2,990,931 161,594 4,607 22,711
$
3,569,744 85,958 1,223,076 1,980,239 388,832 1,503,420 11,479 79,224
Total Governmental Funds $
37,438,084 615,087 1,790,873 3,409,205 5,030,999 1,127,782 3,934,671 289,388 44,947 105,133 1,128,473
40,610,364
5,462,306
8,841,972
54,914,642
6,140,897 15,817,243 2,477,889 3,214,241 4,832,184 293,214 315,967 1,099,712
1,552,818 3,141,853
8,869 1,714,235 1,072,069 4,185,644 20,247 1,822,045 2,524,421
6,140,897 15,826,112 5,744,942 3,214,241 1,072,069 4,832,184 4,185,644 313,461 1,822,045 315,967 6,765,986
1,130,000 501,793
1,130,000 501,793
12,979,323
51,865,341
(4,137,351)
3,049,301
-
Total expenditures
Nonmajor Governmental Funds
Major Street Fund
-
34,191,347
4,694,671
6,419,017
767,635
See Accompanying Notes to the Financial Statements 3-7
Receiving and fi... - 33 of 189
City of Midland, Michigan Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2015 General Fund
Other financing sources (uses) Proceeds from sale of capital assets Transfers in Transfers out
$
Total other financing sources (uses) Net change in fund balance
Fund balance - end of year
$ 239,065 (1,842,944)
(4,670,964)
(1,603,879)
4,869,644
(836,244)
732,293
1,644,102
8,794,341
25,877,935
11,171,007 $
Total Governmental Funds
800 $ 16,498 (4,688,262)
1,748,053
Fund balance - beginning of year
Nonmajor Governmental Funds
Major Street Fund
12,919,060
See Accompanying Notes to the Financial Statements 3-8
5,912,587 $
5,076,343
$
274,433 $ 5,694,594 (1,099,383)
9,526,634
275,233 5,950,157 (7,630,589) (1,405,199)
$
27,522,037
City of Midland, Michigan
Receiving and fi... - 34 of 189
Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2015
Net change in fund balances - Total governmental funds
$
1,644,102
Total change in net position reported for governmental activities in the statement of activities is different because Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Depreciation expense Capital outlay Loss on disposal of capital assets
(4,767,646) 8,097,769 (16,569)
Investment in joint ventures are not financial resources and therefore are not shown in the fund-based statements
(143,740)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds. State shared revenue Customers Grants Trust deeds
(9,641) (25,297) (335,937) (12,757)
Expenses are recorded when incurred in the statement of activities. Accrued interest Compensated absences
9,107 (49,105)
The statement of net position reports the net pension liability and deferred outflows of resources and deferred inflows related to the net pension liability and pension expense. However, the amount recorded on the governmental funds equals actual pension contributions. Net change in net pension liability - MERS Net change in net pension liability - police and fire Net change in the deferred outflows of resources related to the net pension liability - MERS Net change in the deferred outflows of resources related to the net pension liability - police and fire
(2,729,795) (2,172,315) 781,743 1,861,968
Bond proceeds are reported as financing sources in the governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position. Repayments of long-term debt Amortization of premiums, discounts and similar items
1,130,000 (14,150) 592,757
Internal service funds are also included as governmental activities Change in net position of governmental activities
See Accompanying Notes to the Financial Statements 3-9
$
3,840,494
City of Midland, Michigan
Receiving and fi... - 35 of 189
Proprietary Funds Statement of Net Position June 30, 2015
Assets Current assets Cash and cash equivalents Investments Receivables - net of allowances for uncollectibles: Customers Special assessments, current Accounts and contracts Accrued interest Due from other funds Inventories Prepaid items Restricted assets Cash and cash equivalents
Water Fund
Wastewater Fund
Sanitary Landfill Fund
$ 7,136,757 -
$ 2,150,316 -
$ 6,270,420 -
1,649,965 2,618 8,367 1,421 597,874 -
1,019,467 5,035 12,819 646 -
335,834 1,273 21,153 -
-
1,232,541
Other Enterprise Funds
Total
Internal Service Funds
256,430 -
$ 3,148,963 397,591
$ 18,962,886 397,591
$ 14,594,716 -
5,840 53 22,468 -
14,855 56,025 612 28,193 27,924
3,025,961 7,653 77,211 4,005 21,153 648,535 27,924
262,662 58,121 1,249,529 2,690 834,685 665,570
-
-
1,232,541
Civic Arena Fund $
-
-
9,397,002
4,420,824
6,628,680
284,791
3,674,163
24,405,460
17,667,973
93,250 651,217 37,238,294 12,234,368
1,923,333 39,853,744 -
2,188,765 330,284 1,699,820 9,113,946 -
7,293,592 -
1,376,342 16,161,094 -
2,282,015 330,284 5,650,712 109,660,670 12,234,368
366,725 55,000 16,273,343 -
Total noncurrent assets
50,217,129
41,777,077
13,332,815
7,293,592
17,537,436
130,158,049
16,695,068
Total assets
59,614,131
46,197,901
19,961,495
7,578,383
21,211,599
154,563,509
34,363,041
580,998
303,606
198,752
288,830 31,691
157,280
288,830 1,272,327
306,345
580,998
303,606
198,752
320,521
157,280
1,561,157
306,345
60,195,129
46,501,507
20,160,247
7,898,904
21,368,879
156,124,666
34,669,386
Total current assets Noncurrent assets Restricted assets Cash and cash equivalents Special assessments receivable Advances to other funds Capital assets not being depreciated Capital assets, net of accumulated depreciation Investment in joint venture
Deferred outflows of resources Deferred amount of debt refunding Deferred amount of pension expense related to net pension liability - MERS Total deferred outflows of resources Total assets and deferred outflows of resources
See Accompanying Notes to the Financial Statements 3 - 10
Receiving and fi... - 36 of 189
City of Midland, Michigan Proprietary Funds Statement of Net Position June 30, 2015 Water Fund
Liabilities Current liabilities Accounts payable Accrued and other liabilities Due to other funds Deposits Unearned revenue Accrued interest Estimated healthcare claims
$
393,191 138,556 12,171 -
Sanitary Landfill Fund
Wastewater Fund $
619,810 198,132 445 37,541 -
$
81,039 -
Civic Arena Fund $
Other Enterprise Funds
43,173 19,138 999 -
$ 1,192,354 44,186 111,162 417,547 -
Total $
2,329,567 63,324 448,849 430,163 37,541 -
Internal Service Funds $
622,359 21,153 31,406 406,102
543,918
855,928
81,039
63,310
1,765,249
3,309,444
1,081,020
8,229,925 241,271 93,250 171,285 -
4,300,621 1,312,713 6,854,488 -
2,815,355 65,583 90,874 3,883,000
448,906 246,494 3,989,188 -
2,227,899 81,622 28,027 -
18,022,706 1,947,683 93,250 11,133,862 3,883,000
4,339,416 367,768 330,284 4,883,328 -
Total noncurrent liabilities
8,735,731
12,467,822
6,854,812
4,684,588
2,337,548
35,080,501
9,920,796
Total liabilities
9,279,649
13,323,750
6,935,851
4,747,898
4,102,797
38,389,945
11,001,816
37,889,511 13,025,969
33,808,014 (630,257)
10,813,766 2,410,630
3,367,422 (216,416)
17,537,436 (271,354)
103,416,149 14,318,572
11,303,343 12,364,227
117,734,721
$ 23,667,570
Total current liabilities Noncurrent liabilities Net pension liability - MERS Current portion of noncurrent liabilities Guarantee deposits Advances from other funds Long-term debt net of current portion Accrued landfill closure and postclosure care costs
Net position Net investment in capital assets Unrestricted (deficit) Total net position
$ 50,915,480
$ 33,177,757
$ 13,224,396
$ 3,151,006
Some amounts reported for business-type activities in the statement of net position are different because certain internal service funds assets and liabilities are reported with business-type activities
$ 17,266,082
8,290,098 $ 126,024,819
Net position of business-type activities
See Accompanying Notes to the Financial Statements 3 - 11
Receiving and fi... - 37 of 189
City of Midland, Michigan Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2015
Water Fund Operating revenue Customer fees Use and admission charges Billings to other funds Rental income Fines and forfeits Sale of meals - revenue Other revenue
$ 10,590,971 388,410 89,019 61,338
Sanitary Landfill Fund
Wastewater Fund $
5,825,591 89,593 1,326,191
$
2,924,072 9,573 54,196
Other Enterprise Funds
Civic Arena Fund $
1,099,398 9,167
$
894,559 2,676,518 604,747 351,405
Internal Service Funds
Total $
16,416,562 4,918,029 3,064,928 188,185 604,747 1,802,297
$
11,381,218 4,159,540 4,296,395
11,129,738
7,241,375
2,987,841
1,108,565
4,527,229
26,994,748
19,837,153
Operating expenses Operations Administration Maintenance Other expenses Depreciation and amortization
4,035,899 1,476,986 3,416,857 687 1,455,723
1,310,491 975,820 1,795,696 406,560 1,600,029
2,850,976 52,207 597,500
836,794 37,834 2,155 346,148
4,609,079 114,754 999 679,058
13,643,239 2,452,806 5,365,141 462,608 4,678,458
16,150,273 2,226,275
Total operating expenses
10,386,152
6,088,596
3,500,683
1,222,931
5,403,890
26,602,252
18,376,548
743,586
1,152,779
392,496
1,460,605
Total operating revenue
Operating income (loss) Nonoperating revenue (expenses) Interest income Contractual revenues Gain (loss) on disposition of assets Interest expense Total nonoperating revenues (expenses) Income (loss) before contributions and transfers
(512,842)
(114,366)
(876,661)
7,130 430,590 (1,525) -
3,888 1,735 (307,591)
14,612 (18,182) -
162 (136,149)
11,769 (6,855) -
436,195
(301,968)
(3,570)
(135,987)
4,914
(516,412)
(250,353)
1,179,781
850,811
See Accompanying Notes to the Financial Statements 3 - 12
(871,747)
37,561 430,590 (24,827) (443,740)
26,664 159,452 -
(416)
186,116
392,080
1,646,721
Receiving and fi... - 38 of 189
City of Midland, Michigan Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2015
Water Fund Capital contributions Transfers in Transfers out Change in net position Net position - beginning of year, as restated Net position - end of year
$
Sanitary Landfill Fund
Wastewater Fund
258,500 $ 255,138 (60,000)
163,345 $ 1,157,469 (40,000)
-
1,633,419
2,131,625
49,282,061
31,046,132
13,740,808
$ 50,915,480
$ 33,177,757
$ 13,224,396
Other Enterprise Funds
Civic Arena Fund $
(516,412)
425,000 174,647
$
$
Total
105,084 $ 685,993 (10,000)
526,929 $ 2,523,600 (110,000)
(90,670)
3,332,609
1,098,246
114,402,112
22,569,324
2,976,359
17,356,752
3,151,006
$ 17,266,082
$
Some amounts reported for business-type activities in the statement of activities are different because the net revenue (expense) of certain internal service funds is reported with business-type activities
505,489 $
Change in net position of business-type activities
See Accompanying Notes to the Financial Statements 3 - 13
Internal Service Funds
3,838,098
184,693 100,000 (833,168)
23,667,570
City of Midland, Michigan
Receiving and fi... - 39 of 189
Proprietary Funds Statement of Cash Flows For the Year Ended June 30, 2015
Water Fund Cash flows from operating activities Receipts from customers Receipts from other funds Payments to suppliers Payments to employees
Sanitary Landfill Fund
1,800,619
Cash flows from noncapital financing activities Transfer from other funds Transfers to other funds Advances from other funds Advances to other funds Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities Proceeds from capital debt Capital contributions Purchases/construction of capital assets Principal and interest paid on long-term debt Contractual revenues Proceeds from sale of capital assets Net cash used by capital and related financing activities
Total
Internal Service Funds
4,492,773 $ 27,119,500 $ 7,311,939 11,304,597 (2,764,807) (12,836,311) (15,027,232) (1,938,315) (8,929,107) (2,665,147)
3,472,990
119,353
171,469
(210,349)
5,354,082
924,157
255,138 (60,000) -
1,157,469 (40,000) -
21,152 -
425,000 -
685,993 (10,000) -
2,523,600 (110,000) 21,152 -
100,000 (833,168) (21,152)
195,138
1,117,469
21,152
425,000
675,993
2,434,752
(754,320)
258,500 (1,492,971) 430,590 6,000
5,965,000 163,345 (3,362,823) (7,049,417) 1,735
(64,927) -
(341,301) -
105,084 (660,454) -
5,965,000 526,929 (5,581,175) (7,390,718) 430,590 7,735
184,693 (2,547,752) 233,124
(797,881)
(4,282,160)
(64,927)
(341,301)
(555,370)
(6,041,639)
(2,129,935)
7,130
3,888
14,612
162
Net change in cash and cash equivalents
1,205,006
312,187
90,190
255,330
Cash and cash equivalents - beginning of year
5,931,751
1,838,129
6,180,230
1,100
$ 7,136,757
$ 2,150,316
$ 6,270,420
Cash and cash equivalents - end of year
Other Enterprise Funds
Civic Arena Fund
$ 11,264,727 $ 7,232,454 $ 2,983,575 $ 1,145,971 $ (5,781,132) (1,829,578) (1,738,404) (722,390) (3,682,976) (1,929,886) (1,125,818) (252,112)
Net cash provided (used) by operating activities
Cash flows from investing activities Interest received
Wastewater Fund
$
256,430
See Accompanying Notes to the Financial Statements 3 - 14
14,022
39,814
(75,704) 3,224,667 $
3,148,963
$
26,664
1,787,009
(1,933,434)
17,175,877
16,528,150
18,962,886
$ 14,594,716
City of Midland, Michigan
Receiving and fi... - 40 of 189
Proprietary Funds Statement of Cash Flows For the Year Ended June 30, 2015
Wastewater Fund
Sanitary Landfill Fund
Cash and equivalents reported on Statement of Net Position as follows Cash and cash equivalents $ 7,136,757 Cash and cash equivalents - restricted current 93,250 Cash and cash equivalents - restricted noncurrent
$ 2,150,316 1,232,541 -
$ 6,270,420 2,188,765
$
256,430 -
$
3,148,963 -
$
18,962,886 1,232,541 2,282,015
$ 14,594,716 -
$ 7,230,007
$ 3,382,857
$ 8,459,185
$
256,430
$
3,148,963
$
22,477,442
$ 14,594,716
$
$
$
-
$
$
(512,842) $
Water Fund
Net cash and equivalents Noncash investing activities - changes in fair value of investments Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income to net cash from operating activities Depreciation and amortization expense Noncash portion of deferred outflows related to net pension liability Loss on investment in joint venture Changes in assets and liabilities Restricted cash Receivables (net) Due from other funds Inventories Prepaid items Deferred amount of pension expense related to net pension liability Accounts payable Accrued and other liabilities Deposits Due to other funds Accrued landfill closure costs Unearned revenue Net cash provided (used) by operating activities
$
-
743,586 1,455,723 293,209 (749,350) (25,275) 134,989 (54,856) (194,617) 63,500 42,411 89,988 1,311
$ 1,800,619
-
$ 1,152,779 1,600,029 153,219 (53,169) (8,921) (101,699) 562,796 (30,459) 198,132 283 $ 3,472,990
$
Other Enterprise Funds
Civic Arena Fund
-
Total
$
(2,253) $
(114,366) $
(876,661) $
Internal Service Funds
(2,253) $
392,496
-
$ 1,460,605
597,500 100,303 -
346,148 15,994 -
679,058 79,373 -
4,678,458 642,098 (749,350)
2,226,275 154,603 -
(5,805) (4,160) (106) (66,576) (70,932) (11,029) 93,000 -
37,406 6,703 (10,616) (110,598) 250 548 -
(34,456) 11,695 (19,080) (52,684) (407,396) 3,790 43 405,969
(84,249) 124,858 (106) (36,458) (19,080) (426,192) 37,370 4,963 288,711 93,000 407,563
(1,220,723) (118,615) (530,206) (102,617) (37,740) (907,531) 106 -
119,353
$
171,469
See Accompanying Notes to the Financial Statements 3 - 15
$
(210,349) $
5,354,082
$
924,157
City of Midland, Michigan
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Fiduciary Funds Statement of Net Position June 30, 2015 Police and Fire Retirement Trust Fund Assets Cash and cash equivalents Investments Common stock Preferred stock Bonds International funds Alternative investments Receivables - net of allowances for uncollectibles: Accounts and contracts Accrued interest and other Prepaids
$
2,021,639
Liabilities Accrued and other liabilities Due to foundations Due to other units of government Total liabilities $
2,195,374 -
53,593 60,910,340
See Accompanying Notes to the Financial Statements 3 - 16
$
28,978,755 1,628,206 12,374,164 9,531,273 6,322,710
Total assets
Net position Net position restricted for pensions
Agency Funds
549,412 38 88,443 $
2,833,267
-
$
1,872,495 200,268 760,504
-
$
2,833,267
60,910,340
City of Midland, Michigan
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Fiduciary Funds Statement of Changes in Net Position For the Year Ended June 30, 2015 Police and Fire Retirement Trust Fund Additions Contributions Employer Plan members
$
2,466,484 562,157 3,028,641
Total contributions Investment earnings Net gain on fair value of investments Interest Dividends
1,980,866 362,495 680,750 3,024,111
Total investment earnings
(428,549)
Less investment expense Net investment earnings
2,595,562 18,046
Other revenue
5,642,249
Total additions Deductions Benefits paid
5,637,423 4,826
Change in net position
60,905,514
Net position restricted for pensions - beginning of year Net positions restricted for pensions - end of year
See Accompanying Notes to the Financial Statements 3 - 17
$
60,910,340
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 seven-member board, which is appointed by the City Council. Funding for the CCA mainly comes from tax increment financing from properties located within the CCA district. All projects initiated by the CCA will be considered public improvements by the City facilities, it has been blended into the financial statements as a Special Revenue Fund. The CCA has a June 30 year end.
Note 1 - Summary of Significant Accounting Policies The accounting policies of the City of Midland, Michigan (the “City”) conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The following is a summary of the significant accounting policies used by the City of Midland, Michigan.
Joint Ventures Saginaw-Midland Municipal Water Supply Corporation – The Saginaw-Midland Municipal Water Supply Corporation (SMMWSC), located approximately 13.5 miles east of the City of Midland, is an Authority incorporated by the Cities of Midland and Saginaw, Michigan, under Act 233, Public Acts of Michigan, 1955, as amended. The SMMWSC is administered by a six-member board of trustees, each community appointing three members, and is empowered to prepare, adopt, and submit to the legislative bodies of each municipality an annual budget covering estimated revenues, proposed expenditures, and the necessary funds required from each municipality for the next fiscal year.
Reporting Entity The City of Midland is a municipal corporation governed by an elected five-member City Council (the “Council”), which biannually selects one of its members to serve as mayor. The City operates under a councilmanager form of government. The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Although blended component units are legal separate entities, in substance, they are part of the government’s operations and data from these units are therefore combined with data from the primary government. Blended Component Unit Midland Downtown Development Authority – The Midland Downtown Development Authority (MDDA) was established in 1987 for the purpose of maintaining and renovating the downtown Midland area. The MDDA is administered by a 12-person board, which is appointed by the City Council. Funding for the MDDA is provided by a two-mill levy on property within the district and by tax increment financing. All projects initiated by the MDDA are considered public improvements to the City’s infrastructure, parks, or parking facilities. Since the MDDA is used exclusively as a financing source for City facilities, it has been blended into the financial statements of the City as a Special Revenue Fund. The MDDA has a June 30 year end.
Funding for the acquisition of property and for the development and improvement of the water supply system is provided by sale of SMMWSC negotiable bonds secured by the full faith and credit of each municipality in a ratio based upon predetermined capacity reserves; 20/43rds for the City of Midland and 23/43rds for the City of Saginaw. Funding for operations is provided by sale of water to the two communities on a consumption basis. The City’s equity in the SMMWSC is accounted for in the Water Fund, which is included in the business-type activities column of the statement of net position.
Center City Authority – The Center City Authority (CCA) was established in May 2008 for the purpose of capturing incremental tax revenues generated in the district to reinvest them in the district thus enhancing the area’s business climate. The CCA is administered by a 3 - 18
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
A summary of SMMWSC’s financial information for the year ended June 30, 2015 follows: Total assets and deferred outflows of resources Total liabilities Equity - City of Midland Equity - City of Saginaw Total revenues Total expenses Net income
The City is unaware of any circumstances that would cause an additional benefit or burden to the participating parties in the near future for any of the above organizations.
$ 40,422,055 14,138,163 12,234,368 14,069,524 6,483,704 3,677,574 2,806,130
Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
At June 30, 2015, total outstanding bonded debt of the SMMWSC was $10,430,000. The City was obligated for $4,851,163 of this total. Midland City/County Joint Building Authority – The City’s ownership interest in the Midland City/County Joint Building Authority is accounted for in the governmental activities column of the statement of net position. The Authority was created as a financing vehicle for the Midland Law Enforcement Center. The Law Enforcement Center is leased from the Joint Building Authority (JBA) by the City of Midland Police Department, the Midland County Sheriff Department, and the Midland County Central Dispatch Authority. The JBA is governed by a three-person board with the City and County each appointing one member and with the third member being mutually appointed. Additional information concerning the Joint Building Authority and its lease with the City is detailed later in the notes.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 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. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
Complete financial statements, which are audited for the SaginawMidland Municipal Water Supply Corporation and the Midland City/County Joint Building Authority, are available from the City Clerk’s office.
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015 The City reports the following major governmental funds:
Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements, excluding agency funds which have no measurement focus. 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 General Fund is the City’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 Fund accounts for state shared revenues from gas and weight taxes and property taxes levied for expenditures relating to construction activities, repairs, and maintenance of all major streets and trunklines. The City reports the following major proprietary funds:
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.
The Water Fund accounts for the operation and maintenance of the City’s water supply system, capital additions and retirement of bonds. The Wastewater Fund accounts for the operation and maintenance of the City’s sewage disposal system, capital additions and retirement of bonds. The Sanitary Landfill Fund accounts for the operation and maintenance of the City’s trash and garbage disposal system. The Civic Arena Fund accounts for the operations and maintenance of the City’s ice arena facility, capital additions, and retirement of debt.
Property taxes, sales 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. Sales and motor fuel taxes collected and held by the State at fiscal year end on behalf of the City are also recognized as revenue of the current fiscal period. Only the portion of special assessments receivable due within 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 City.
The City reports the following nonmajor governmental funds: Special Revenue Funds Local Street Fund accounts for the maintenance and construction of streets designated by the Michigan Department of Transportation as local streets. 3 - 20
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Notes to the Financial Statements June 30, 2015 Center City Authority Fund accounts for the economic growth in the City Center as it becomes a destination for endless possibilities to eat, shop, and explore.
foundation. Debt Service Fund
Stormwater Management Fund accounts for storm sewer maintenance, open drain cleaning, and county drain assessments related to storm water management within the City.
The Debt Service Fund accounts for the servicing of general long-term debt not being financed by proprietary or nonexpendable trust funds. Permanent Fund
Grace A. Dow Memorial Library Fund accounts for property taxes, library services revenue and a General Fund subsidy to be used for providing library services to the citizens of Midland.
The Cemetery Fund is used to account for the Midland Cemetery perpetual care principal and interest earnings.
Community Development Block Grant Fund accounts for grant revenues from the Department of Housing and Urban Development to be used for residential and other capital improvements. Dial-A-Ride Fund accounts transportation system.
The City reports the following nonmajor proprietary funds: Washington Woods Fund accounts for the operation and maintenance of one of the City’s senior housing rental properties.
Dial-A-Ride
Riverside Place Fund accounts for the operation and maintenance of one of the City’s senior housing rental properties.
Downtown Development Authority Fund accounts for property taxes levied by and authority established for the purpose of maintaining and renovating the downtown Midland area.
The Currie Municipal Golf Course Fund accounts for the operation and maintenance of the City’s golf course.
for
the
City’s
The Parking Fund accounts for the operations of the City’s metered and leased parking spaces and downtown parking structure.
Midland Community Television Fund accounts for franchise fees generated by an agreement with a local cable company to support two public access channels operated by the City.
Additionally, the City reports the following internal service funds:
Special Activities Fund accounts for various types of activities that are specifically funded by outside parties, not appropriate to be accounted for in any other Special Revenue Fund, and for which the City is the benefactor of those activities.
The Information Services Fund accounts for the operations of the City’s Information Services Department. The Store Revolving Fund accounts for the revenue and expenses associated with inventory items consumed by various departments and not specific to any one department.
Midland Housing Fund is used to account for a housing rehabilitation program, which was established by a local 3 - 21
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
The Equipment Revolving Fund accounts for rental charges of City-owned equipment to other City departments.
The Agency Funds account for assets held by the City in a trustee capacity. Agency funds are custodial in nature (assets equal liabilities) and do not involve the measurement of results in operations. The City administers the following Agency Funds:
The Municipal Service Center Fund accounts for the operations of the City’s Service Center building.
The Payroll Fund is used to account for all benefits charged and all deductions withheld during payroll processing until payments are remitted.
The Renewable Energy Services Fund was created to account for the activities related to the City’s gas-to-energy project. Gases from the City’s landfill will be captured and converted to electric energy, which will be sold to outside entities. Savings created by this operation will be rebated back to other City funds based upon their electricity consumption.
The Midland Downtown Business Association Fund accounts for special assessments charged to property owners within the Authority district for promotion of this area. The City acts as an agent for the financial management of this authority.
The Property and Liability Insurance Fund accounts for insurance expenses resulting from property and liability claims.
The DDA Façade Improvements Fund accounts for loans to businesses in the Downtown Development Authority business district. The funding for these loans was provided by a grant from the Rollin M. Gerstacker Foundation.
The Health Insurance Fund accounts for revenues and expenses of the City’s self-insurance program for health insurance along with the contributions toward postemployment healthcare benefits.
The Tax Collection Fund is used to account for taxes collected on behalf of other governmental units.
The Special Assessment Revolving Fund accounts for the funding of the City’s special assessment projects.
The Center City Façade Improvements Fund accounts for loans to commercial property owners and business owners in the Center City corridor for qualifying façade improvements. The funding for these loans was provided by a grant from the Midland Area Community Foundation.
The Municipal Service Annex Fund accounts for the operations of the City’s Municipal Service Annex building. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Because these funds represent trust responsibilities of the City, these assets are restricted in purpose and do not represent discretionary assets of the City. The City’s only fiduciary fund in the current year is the Police and Fire Retirement Fund. The City’s fiduciary activities are reported in separate statements of fiduciary net position and changes in fiduciary net position.
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 wastewater function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 3 - 22
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
arrangement outstanding at the end of the fiscal year is referred to as “advances to/from other funds.” Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.” Property tax receivables are shown as net of allowance for uncollectible amounts totaling $120,500. The property tax receivable allowance at June 30, 2015 equals 100 percent of outstanding property taxes over two years old, 50 percent of outstanding property taxes two years old, and 10 percent of outstanding property taxes one year old.
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 of the City’s proprietary funds and the internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. The portion intended to recover the cost of infrastructure is recognized as nonoperating revenue. Operating expenses for the proprietary funds and the 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.
Properties are assessed annually as of December 31, and property taxes are billed and become a lien on July 1 of the following year. These taxes are due on September 15 with a final collection date of February 28 before they are added to the county tax roll. The City also bills and collects an amount each December, primarily for schools, County, and college. Also included in the December billing is a tax administration fee, which is revenue to the City. The December billing is due February 14 with a final collection date of February 28. Penalties and interest are assessed on payments received after the due date.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
The 2014 taxable valuation of the City totaled $2,332,816,968 on which ad valorem taxes consisted of 12.58 mills for the City’s operating purposes, 1.0 mills for Library services, 1.18 for pension savings, and .28 mills for debt levies. This resulted in $29,059,453 for operating expenses, $2,330,679 for the Library, $2,754,445 for pension savings, and $652,553 for debt service, exclusive of any Michigan Tax Tribunal or Board of Review adjustments.
Assets, Liabilities, and Net Position or Equity Deposits and investments – Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with a maturity of three months or less when acquired. Investments are stated at fair value based on quoted market price. Certificate of deposits are stated at cost which approximates fair value. Receivables and payables – In general, outstanding balances between funds are reported as “due to/from other funds.” Activity between funds that is representative of lending/borrowing
Inventories and prepaid items – Inventories are valued at cost, on an average cost method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to 3 - 23
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
future fiscal years and are recorded as prepaid items in both the government-wide and fund financial statements.
year incurred. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
Restricted assets – Certain resources are set aside for debt service on the City’s Enterprise Fund general obligation bonds and are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Additionally, certain resources are set aside for closure and postclosure costs for the enterprise landfill operation and are classified as restricted assets because their use is limited by applicable State regulations.
Capital assets are depreciated using the straight-line method over the following useful lives: Buildings Building improvements Land improvements Roads and sidewalks Water and sewer distribution systems Vehicles Equipment Library circulation materials Computer equipment
Assets held for resale – include properties acquired with the express intent of resale. Properties are recorded at cost in the governmental funds. At year end, the City’s Major Street fund held property with the intent of selling or exchanging it for road right-of-way property for future street expansion projects.
50 years 20 years 50 years 20 to 30 years 50 years 3 to 10 years 10 years 5 years 4 years
Deferred outflows of resources – A deferred outflow of resources is a consumption of net position by the government that is applicable to a future reporting period.
Capital assets – Capital assets, which include property, plant, equipment, and infrastructure (e.g., road, 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 $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost, if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The City reports deferred outflows of resources as a result of pension earnings. This amount is the result of a difference between what the plan expected to earn from the plan investments and what the plan actually earned. This amount will be amortized over the next four years and included in pension expense. The City also reported deferred outflows of resources for pension contributions made after the measurement date. This amount will reduce net pension liability in the following year.
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 extend its useful life beyond the original estimate.
Compensated absences – It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation pay is fully vested when earned, and sick pay is conditionally vested upon completion of 10 years of service. Upon retirement, employees are paid accumulated vacation and one-half of unused sick days at their hourly rate as of their retirement date.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Projects with total costs of less than $10,000 are considered repairs and are reported as expenses in the 3 - 24
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
All sick and vacation pay is accrued when incurred in the governmentwide, and proprietary fund financial statements. A liability for the entire amount, current and long term is accrued in the governmentwide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
City received actuarial-based calculations to compute the annual required contributions (ARC) necessary to fund the obligations over the remaining amortization periods. In the governmental funds, pension and OPEB costs are recognized as contributions are made. For the government-wide statements and proprietary funds, the City reports the full accrual cost equal to the current year required contributions, adjusted for interest and “adjustment to the ARC” on the beginning of the year underpaid amount, if any.
Long-term obligations – In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
Deferred inflows of resources – A deferred inflow of resources is an acquisition of net position by the government that is applicable to a future reporting period. For governmental funds this includes unavailable revenue in connection with receivables for revenues that are not considered available to liquidate liabilities of the current period.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Fund equity – In the fund financial statements, governmental funds report fund balance in the following categories: Non-spendable – assets that are not available in a spendable form. Restricted – amounts that are legally imposed or otherwise required by external parties to be used for a specific purpose. Committed – amounts constrained on use imposed by the City’s highest level of decision-making, its City Council. A fund balance commitment may be established, modified, or rescinded by a resolution of the City Council.
Pensions and other postemployment benefit (OPEB) costs – The City offers both pension and retiree healthcare benefits to retirees. For purposes of measuring the net pension liability, deferred outflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Municipal Employees Retirement System (MERS) of Michigan and the Police and Fire Retirement System and additions to/deductions from MERS and the Police and Fire Retirement System’s fiduciary net position have been determined on the same basis as they are reported to the systems. For the purpose recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The
Assigned – amounts intended to be used for specific purposes, as determined by City Council. The City Council annually approves a resolution granting the City’s Assistant City Manager for Financial Services the authority to assign funds. In governmental funds other than the general fund, the assigned fund balance represents the amount that is not restricted or committed which indicates that these resources are, at a minimum, intended to be used for the 3 - 25
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Notes to the Financial Statements June 30, 2015 contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates.
purpose of that fund. The governmental funds have an assigned fund balance as of June 30, 2015 for the following purposes: General Fund Encumbrances Stormwater Management Midland Community Television Total
$
2,521,867 656,066 1,529,036
$
4,706,969
Adoption of New Accounting Standards The Governmental Accounting Standards Board (“The GASB”) has issued Statement No. 68 Accounting and Financial Reporting for Pensions, and Statement 71 Pension Transition for Contributions Made Subsequent to the Measurement Date. Statement 68 requires governments participating in public employee pension plans to recognize their portion of the long-term obligation for the pension benefits as a liability and to measure the annual costs of the pension benefits. The net pension liability is recorded on the government-wide statements and, if applicable, the proprietary fund statements. Statement 71 amends Statement 68 to address an issue concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of Statement 68 by employers and non-employer contributing entities. Statements 68 and 71 were effective for the year ended June 30, 2015.
Unassigned – all other resources; the remaining fund balances after non-spendable, restrictions, commitments and assignments. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City’s policy is to consider restricted funds spent first. When an expenditure is incurred for purposes for which committed, assigned, or unassigned amounts could be used, the City’s policy is to consider the funds to be spent in the following order: (1) committed, (2) assigned, (3) unassigned.
The GASB has also issued Statement No. 69 Government Combinations and Disposals of Government Operations. Statement 69 provides detailed requirements for the accounting and disclosure of various types of government combinations, such as mergers, acquisitions, and transfers of operations. The guidance available previously was limited to nongovernmental entities, and therefore did not provide practical examples for situations common in governmentspecific combinations and disposals. The accounting and disclosure requirements for these events vary based on whether a significant payment is made, the continuation or termination of services, and the legal structure of the new or continuing entity. Statement 69 was effective for the year ended June 30, 2015.
Encumbrances The following encumbrances are reported within assigned and restricted fund balance in the governmental funds:
General cash flow management Major Street Nonmajor Governmental
$
2,521,867 1,580,308 1,990,220
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United State of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of 3 - 26
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015 are not within the scope of Statement 68 and the third objective is to clarify the application of certain provisions of Statement No. 67 and 68. These two requirements are effective for the fiscal year ending June 30, 2016.
Upcoming Adoption of New Accounting Standards The Governmental Accounting Standards Board (“The GASB”) has issued Statement No. 72 Fair Value Measurements and Applications. Statement 72 addresses accounting and financial reporting issues related to fair value measurements. Fair value is defined as an exit price (what a government would get to sell the asset), and fair value measurements primarily apply to investments. The statement enhances fair value application guidance and related disclosures in order to provide information to financial statement users about the impact of fair value measurements on a government’s financial position. This statement requires additional disclosures about fair value measurements, the level of fair value hierarchy, and valuation techniques. Statement 72 is effective for the year ending June 30, 2016, although earlier application is allowed.
Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans addresses the other postemployment benefits plans (OPEB) – defined benefit and defined contribution – administered through trusts. This Statement will improve the financial reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by OPEB plans that are administered through trusts. This information will enhance the transparency by providing information about measures of net OPEB liabilities and explanations of how and why those liabilities changed from year to year. Statement No. 74 is effective for the fiscal year ending June 30, 2017.
In addition, the Governmental Accounting Standards Board has released the following three Statements.
Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined OPEB plans, this Statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee services. It also requires additional note disclosures and required supplementary information. Statement No. 75 is effective for the fiscal year ending June 30, 2018.
Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statement 67 and 68. The purpose of this Statement is provide the readers of the financial statements information about the effects of the pension-related transactions on the financial statements of state and local government employers. It will assist in assessing the relationship between a government’s inflows of resources and its total cost (including pension expense) of providing government services each period in addition to providing information about the government’s pension obligation. The first objective of this Statement is to improve the information about financial support provided by certain nonemployer entities for pensions that are provided to the employees of other entities that are not within the scope of Statement No. 68. These requirements are effective for the fiscal year ending June 30, 2017. The second objective is to improve the quality of information associated with governments that hold assets accumulated for purposes of providing defined benefit pensions that
The City is evaluating the impact GASB 72 and 75 will have on its financial reporting.
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City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 The City Council approves the annual budget, which is prepared at the functional level.
Note 2 - Stewardship, Compliance, and Accountability State Construction Code Act The City oversees building construction, in accordance with the State’s Construction Code Act, including inspection on building construction renovation to ensure compliance with the building codes. The City charges fees for these services. Beginning January 1, 2000, the law requires that collection of these fees be used only for construction code costs, including an allocation of estimated overhead costs. A summary of the current year activity and the cumulative shortfall generated since January 1, 2000 follows: Shortfall at July 1, 2014
Deficit Net Position The City has accumulated unassigned and unrestricted net position deficits in the Civic Arena Fund and the Currie Municipal Golf Course Fund. Deficit elimination plans are on file with the Michigan Department of Treasury for the Currie Municipal Golf Course Fund and the Civic Arena Fund. Note 3 - Deposits and Investments Michigan Compiled Laws, Section 129.91 (Public Act 20 of 1943, as amended) authorizes local governmental units to make deposits and invest in the accounts of federally insured banks, credit unions, and savings and loan associates that have offices in Michigan. The local unit is allowed to invest in bonds, securities, and other direct obligations of the United States or any agency or instrumentality of the Unites States; United States government of federal agency obligations; repurchase agreements; bankers’ acceptances of United States banks; commercial paper rated within the two highest classifications, which matures not more than 270 days after the date of purchase; obligations of the State of Michigan or its political subdivisions, which are rates as investment grade; and mutual funds composed of investment vehicles that are legal for direct investment by local units of government in Michigan.
$ (588,020)
Current year building permit revenue
418,915
Related expenses: Direct costs Estimated indirect costs Total construction code expenses Cumulative shortfall at June 30, 2015
$
497,462 29,848 527,310 $ (696,415)
Budgetary Information The City is subject to the budgetary control requirements of the Uniform Budgeting Act (P.A. 621 of 1978, as amended). Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General Fund, Special Revenue Funds, and Debt Service Fund. All annual appropriations lapse at the end of the fiscal year, except as noted.
The City Council has designated nine financial institutions for the deposit of local unit funds. The investment policy adopted by the City in accordance with Public Act 20 of 1943 (as amended) authorizes investments in U.S. Treasuries, U.S. agencies and instrumentalities, certificates of deposit, commercial paper (meeting certain rating and maturity requirements), repurchase agreements, investment pools, bankers’ acceptances of U.S. banks, and mutual funds. Repurchase agreements must be signed with the bank or dealer and must contain provisions comparable to those outlined in the Public Security
On or before the second Monday in April, the City Manager presents the proposed budget to the City Council for review. The City holds public hearings and a final budget must be prepared and adopted no later than the fourth Monday in May. During the current year, the budget was amended in a legally permissible manner. 3 - 28
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
Association’s model Master Repurchase Agreement. The City Treasurer may invest in investment pools organized under the Surplus Funds Investment Pool Act of 1982 and under the Urban Cooperation Act of 1967.
At year end, the City’s deposits and investments were reported in the basic financial statements in the following categories:
Cash and Cash Equivalents
For Mutual Funds, the City Treasurer may invest in funds registered under the Investment Company Act of 1940. This authorization is limited to securities whose intention is to maintain a net asset value of $1.00 per share and investment vehicles that are legal for direct investment by a public corporation.
Governmental activities Business-type activities
$
Total primary government
The above-mentioned City investment policy applies to all financial assets of the City except for its Post Retirement Health Care and the Police and Fire Retirement System Fund, which are organized and administered separately. Investments are made pursuant to provisions of the Public Employee Retirement System Investment Act of 1965. Michigan Public Act 314 of 1965 and Michigan Public Act 149 or 1999, as amended, authorize investments in certain reverse repurchase agreements, stocks, diversified investment companies, annuity investment contracts, real estate leased to public entities, mortgages, real estate (if the trust fund’s assets exceed $250 million), debt or equity of certain small businesses, certain state and local government obligations, and certain other specified investment vehicles.
Fiduciary funds Total
$
40,951,519 18,962,886
Investments $
397,591
59,914,405
397,591
4,217,013
58,835,108
64,131,418
Restricted Cash and Cash Equivalents
$
59,232,699
$
3,514,556 3,514,556 -
$
3,514,556
The break down between deposits and investments is as follows: Primary Government Bank deposits (checking and savings accounts, money markets and certificates of deposit)
$
Investments in securities, mutual funds and similar vehicles
$
397,591
$
63,826,552
4,217,013
58,835,108
9,302
Petty cash and cash on hand Total
63,419,659
Fiduciary Funds
$
63,052,121
The City’s cash and investments are subject to several types of risk, which are examined in more detail below: Concentration of Credit Risk – The City has no policy that would limit the amount that may be issued in any one issuer. The City has two investments in individual issuers that exceeded five percent of total investments. The Mesirow Institutional Multi-Strategy Fund LPA and 3 - 29
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 Ironwood Institutional Multi-Strategy Fund LLC alternative investments were 5.59% and 5.08% of total investments, respectively.
Credit Risk – State law limits investments in commercial paper to the top two ratings issued by nationally recognized statistical rating organizations. The City’s investment policy does not further limit its investment choices. As of year end, the credit quality ratings of debt securities (other than the U.S. government) are as follows:
Custodial Credit Risk of Bank Deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk. At year end, the City had $49,280,364 of bank deposits (certificates of deposit, checking, and savings accounts) that were uninsured and uncollateralized. The City believes that due to the dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to insure all deposits. As a result, the City evaluates each financial institution with which it deposits its funds and assesses the level of risk of each institution; only those institutions with an acceptable estimated risk level are used as depositories.
Investment Commercial paper Commercial paper Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds FHLM FNMA FNMA Money market funds Municipal obligation Municipal obligation Municipal obligation Municipal obligation Municipal obligation Mutual funds Pooled funds
Interest Rate Risk – Interest rate risk is the risk that the value of investments will decrease as a result of a rise in interest rates. The City’s investment policy does not restrict investment maturities, other than commercial paper which can only be purchased with a 270-day maturity. At year end, the average maturities of investments are as follows:
Investment Commercial paper Corporate bonds FHLM FNMA Municipal obligation U.S. Treasury notes
Fair Value $ 10,827,987 9,818,306 275,925 278,806 1,850,923 2,253,027
Weighted Average Maturity 0.370 7.141 29.553 19.017 2.544 4.018
3 - 30
Fair Value $
8,387,622 2,440,365 1,016,834 2,124,720 475,926 115,694 293,653 606,187 83,141 245,063 210,291 517,761 1,070,219 1,520,090 905,182 633,545 275,925 118,620 160,187 1,000,548 535,574 259,414 318,508 156,575 580,853 2,948,602 274,998
Rating
Organization
A1 A1+ A AA+ AAAA+ AAAA BB+ BBBB+ BBBBBB BBB+ N/A N/A AA+ N/A N/A AA AAAA+ AAA N/A N/A N/A
S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P S&P N/A S&P S&P S&P S&P N/A N/A N/A
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
Note 4 - Receivables
Note 6 - Capital Assets
The only receivables not expected to be collected within one year are as follows:
Capital assets activity of the City for the year ended June 30, 2015 was as follows:
Due After One Year Special assessments
$
Beginning Balance Governmental activities Capital assets not being depreciated Land Construction in progress
366,725
Governmental activities and business-type activities report unearned revenue in connection with resources that have been received but not yet earned. At the end of the current fiscal year, unearned revenue are as follows:
Total
$
569,594 12,616 17,584
$
599,794
731,988 5,655,361
$
3,655 5,660,662
$
6,205,641 3,508,538
5,664,317
9,714,179
71,380,538 5,675,435 32,880,322 25,951,649 4,571,808 15,506,696 16,113,196
5,720,594 80,473 478,554 1,217,732 643,886 1,777,596
901,059 1,118,874
77,101,132 5,755,908 33,358,876 27,169,381 4,571,808 15,249,523 16,771,918
172,079,644
9,918,835
2,019,933
179,978,546
Less accumulated depreciation for Major and local roads Sidewalks Buildings Land improvements Library circulation materials Equipment Vehicles
37,788,333 3,321,807 13,732,667 8,207,162 4,131,512 9,246,225 9,905,388
2,743,291 206,381 768,856 562,361 198,853 1,184,017 1,330,162
888,147 1,045,198
40,531,624 3,528,188 14,501,523 8,769,523 4,330,365 9,542,095 10,190,352
Total accumulated depreciation
86,333,094
6,993,921
1,933,345
91,393,670
Net capital assets being depreciated
85,746,550
2,924,914
86,588
88,584,876
94,737,697
$ 9,312,263
$ 5,750,905
Total capital assets being depreciated
Governmental activities capital assets, net
3 - 31
$
6,387,349
Capital assets being depreciated Major and local roads Sidewalks Buildings Land improvements Library circulation materials Equipment Vehicles
Note 5 - Unearned Revenue
5,477,308 3,513,839
Ending Balance
Decreases
8,991,147
Total capital assets not being depreciated
The receivables are included in the Special Assessment Revolving Fund.
Grants and contributions Utility overpayments Other revenue
$
Increases
$
$
98,299,055
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 Beginning Balance Business-type activities Capital assets not being depreciated Land Construction in progress
$
2,777,794 824,123
Increases $
4,193,867
$
2,145,072
$
4,193,867
2,145,072
5,650,712
Capital assets being depreciated Water and sewer lines Building and building improvements Land improvements Landfill improvements Equipment Vehicles
91,783,263 84,993,500 9,047,996 13,099,328 8,323,837 1,960,212
2,388,089 595,547 279,957 49,560 222,584 -
68,516 4,454 190,560 -
94,171,352 85,520,531 9,323,499 13,148,888 8,355,861 1,960,212
Total capital assets being depreciated
209,208,136
3,535,737
263,530
212,480,343
Less accumulated depreciation for Water and sewer lines Building and building improvements Land improvements Landfill improvements Equipment Vehicles
38,047,049 42,323,802 2,246,236 9,016,154 5,420,751 1,314,838
1,788,434 1,806,639 176,073 232,687 555,561 119,064
47,843 1,474 178,298 -
39,835,483 44,082,598 2,420,835 9,248,841 5,798,014 1,433,902
Total accumulated depreciation
98,368,830
4,678,458
227,615
102,819,673
110,839,306
(1,142,721)
35,915
109,660,670
$ 2,180,987
$ 115,311,382
Net capital assets being depreciated Business-type capital assets, net
$ 114,441,223
$ 3,051,146
Governmental activities: General government Public safety Public works Sanitation Parks and recreation Library Airport Transportation Other functions
2,777,794 2,872,918
3,601,917
Total capital assets not being depreciated
Depreciation expense was charged to programs as follows:
Ending Balance
Decreases
Total governmental activities Business-type activities: Civic Arena Landfill Senior Housing Golf course Parking system Wastewater Water Total business-type activities
3 - 32
$
175,770 450,924 4,592,170 520,122 480,860 522,951 75,795 159,720 15,609
$ 6,993,921 $
346,148 597,500 461,971 180,207 36,880 1,600,029 1,455,723
$ 4,678,458
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 Advances at year end are as follows:
Note 7 - Construction Commitments The City had active construction projects as of June 30, 2015. The projects included sidewalk, streets, landfill, renewable energy, wastewater, and water system projects.
Advances to other funds Sanitary Landfill
At year end, the City’s commitments with contractors were as follows:
Total
$
146,396 2,845,909 13,997 1,814,732 562,617
$ 5,383,651
$
Renewable Energy Services
Amount $
330,284
Payments of $22,910 including interest at .5% are due annually for the advance between the Sanitary Landfill Fund and Renewable Energy Services Fund. Future principal payments are as follows:
Remaining Spent to Date Commitment General construction projects Street projects Storm projects Wastewater projects Water projects
Advances from other funds
Year ending June 30, 2016 2017 2018 2019 2020 2021-2025 2026-2030 2031
83,744 692,811 170,477 625,765 749,791
$ 2,322,588
$
21,153 21,258 21,365 21,472 21,579 109,524 112,290 22,796
$
351,437
Note 8 - Interfund Receivables, Payables, and Transfers Total
The composition of interfund balances is as follows: Receivable Fund Sanitary Landfill Community Development Block Grant
Payable Fund Renewable Energy Services Midland Housing
Amount $
21,153 102,583
$
123,736
The balance owing from the Midland Housing Fund to the Community Development Block Grant (CDBG) Fund represents remaining balances on mortgages subsidized by the CDBG fund. The remaining interfund balance resulted from loans made for working capital purposes. 3 - 33
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 The detail for interfund transfers is as follows: Transfers Out Community
Special
Local
Development
Special
Major Street
Street
Block Grant
Activities
Fund
Fund
Fund
Fund
General Fund
Downtown
Riverside
Development
Debt
Authority Fund Service Fund
Assessment
Place
Water
Wastewater
Revolving
Cemetery
Fund
Fund
Fund
Fund
Fund
Total
Transfers in: General Fund Major Street Fund
$
-
$
-
$
-
14,189
$
-
-
$
-
$
2,309 -
$
-
$
-
$
-
$
-
$
-
$
239,065
$
-
$
239,065
16,498
-
-
-
-
-
-
-
-
33,000
-
1,921,000
-
-
-
-
-
-
-
-
-
880,838
Local Street Fund
200,000
1,688,000
Stormwater Management Fund
620,000
154,944
Grace A. Dow Memorial Library Fund
536,997
-
-
-
-
-
-
-
-
-
-
-
536,997
Dial-a-Ride Fund
530,481
-
-
-
-
-
-
-
-
-
-
-
530,481
-
-
-
-
5,000
-
-
-
-
-
2,494
1,817,784
-
-
-
-
-
-
-
-
-
-
-
1,817,784
425,000
-
-
-
-
-
-
-
-
-
-
-
425,000
-
-
72,993
-
-
-
10,000
-
-
-
-
82,993
540,000
-
-
-
-
-
-
-
-
-
-
-
540,000
-
Special Activities Debt Service Fund Civic Arena Fund Washington Woods Fund Currie Golf Course Fund Parking Fund
-
-
105,894
7,494
18,000
-
-
-
-
45,000
-
-
-
-
-
63,000
Water Fund
-
-
-
-
-
-
-
-
-
-
255,138
-
255,138
Wastewater Fund
-
-
-
-
-
-
291,776
-
1,157,469
Renewable Energy Fund
-
-
-
-
-
-
-
100,000
Total
$ 4,688,262
$ 1,842,944
$ 105,894
$
72,993
$
2,309
$
50,000
865,693 $
865,693
$
-
-
-
-
60,000
40,000
10,000
$
60,000
$
40,000
$
833,168
$
2,494
$
8,573,757
The transfers from the General Fund to the Local Streets Maintenance, Stormwater Management, Library, Dial-A-Ride, Civic Arena, Currie Municipal Golf Course and Parking Funds represent the use of unrestricted resources to finance these programs, in accordance with the budgetary operations. The transfer from the General Fund to the Debt Service Fund is to provide funding for the debt service payments for the 2008 Judgment bonds. The transfers from the Major Street Fund to the Local Street Fund represent the sharing of gas and weight tax in accordance with Act 51, as well as sharing the 1-mill County Road Millage that is accounted for in the City's Major Street Fund. Both the Major Street Fund and the Local Street Fund transfer funding to the Stormwater Management Fund to offset roadside drainage costs that are accounted for in that fund. The transfer from the Debt Service Fund to the Wastewater Fund is necessary to transfer an additional millage for debt retirement to the Wastewater Fund, which is the fund that accounts for the related debt. The transfer from the Downtown Development Authority to the Parking Fund is an annual contribution made by the DDA to help fund parking enforcement and related activities within the downtown district. 3 - 34
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015 Note 9 - Leases
The transfers from the Water and Wastewater Funds to the Renewable Energy Fund were to provide assistance for start-up costs in the Fund's operations. The transfers from Community Development Block Grant Fund to Washington Woods Fund are for grant funding as approved by HUD. The transfers from the Riverside Place Fund to the Washington Woods Fund, from the Special Activities Fund to the General Fund, and from the Special Assessment Revolving Loan Fund to the General Fund represent fund transfers in accordance with budgetary authorization. The transfer from Cemetery Fund to the Special Activities Fund is for the reallocation of assets. The transfer from Downtown Development Association Fund to Special Activities Fund is to fund some Special Activity programs run by the Downtown Development Authority. The transfers from the Special Assessment Revolving Fund to the Major Street Maintenance, Local Street Maintenance, Wastewater and Water Funds are for Special Assessments related to construction projects in each of the funds.
Operating Leases The City leases its police facility and landfill equipment under noncancelable operating leases. Total costs for such leases were $321,342 for the year ended June 30, 2015. According to the terms of its lease with the Midland City/County Joint Building Authority, the City’s obligation for operating leases amounts to 64.8 percent of total operating expenses of the police facility. The future minimum lease payments for these leases, including estimates of obligations under the policy facility lease, are as follows: Year ending June 30, 2016 2017 2018 2019 2020 2021 - 2025 Total
3 - 35
$
252,225 104,272 107,400 110,622 113,941 623,074
$ 1,311,534
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 Note 10 - Long-Term Debt Long-term obligation activity is summarized as follows: Amount of Issue
Interest
Principal
Maturity Date
Rate Ranges
Maturity Ranges
Sept. 2023
4.000 - 4.375%
$1,175,000 - $1,545,000
October 2031
2.50%
$260,000 - $375,000
Beginning Balance
Additions
Ending Balance
Reductions
Due Within One Year
Governmental activities Bonds and notes payable General obligation bonds 2008 Judgment Funding Bonds
$ 17,890,000
2010 Renewable Energy*
6,000,000
$
11,940,000
$
-
5,280,000 (127,343)
Bond discount - Renewable Energy Total bonds payable
17,092,657
Total governmental activities
1,799,335
$
20,667,631
$
$
2,264,064 6,770,000
$
1,799,335
1,130,000
$
255,000 (14,150)
-
3,574,974
Compensated absences
$
-
10,810,000
$
5,025,000 (113,193)
1,175,000 260,000 -
1,370,850
15,721,807
1,435,000
1,735,526
3,638,783
1,887,726
$
3,106,376
$
19,360,590
$
3,322,726
$
260,000 6,770,000
$
2,004,064 -
$
265,000 -
Business-type activities Bonds and notes payable General obligation bonds 2001 Sewer Construction - State Revolving Fund 2005 Sewer Refunding Bonds
$
5,130,000 9,480,000
May 2022 May 2021
2.50% 3.85 - 4.15%
2012 Civic Arena Refunding Bonds
4,550,000
May 2030
.70 - 3.55%
$260,000 - $304,063
2015 Sewer Refunding Bonds
5,965,000
May 2021
1.69%
$930,000 - $1,040,000
$265,000 - $304,063 $860,000 - $1,085,000
Total bonds payable Compensated absences Landfill closure and postclosure $
Total business-type activities
-
4,440,000 -
5,965,000
225,000 -
4,215,000 5,965,000
235,000 930,000
13,474,064
5,965,000
7,255,000
12,184,064
1,430,000
900,998 3,790,000
448,615 93,000
452,132 -
897,481 3,883,000
517,683 -
18,165,062
$
6,506,615
*Recorded in internal service funds. Compensated absences are normally liquidated by the fund in which the individual employees are budgeted.
3 - 36
$
7,707,132
$
16,964,545
$
1,947,683
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
On February 3, 2015, the City issued $5,965,000 of General Obligation Unlimited Tax Refund Bonds. The bonds were issued pursuant to resolutions adopted by the City Council on November 24, 2014, and provide for an average interest rate of 1.69 percent. The proceeds of these bonds were used to advance refund $5,910,000 of outstanding 2005 General Obligation Unlimited Bonds with an average interest rate of 3.90 percent.
principal and interest thereon. On September 13, 2005, the City issued $9,480,000 of General Obligation Unlimited Tax Refund Bonds. The bonds were issued pursuant to resolutions adopted by the City Council on July 11, 2005 and August 22, 2005, and provide for an average interest rate of 3.95 percent. The proceeds of these bonds were used to advance refund $9,025,000 of outstanding 2001 General Obligation Unlimited Bonds with an average interest rate of 5.07 percent. These bonds were refunded again on February 3, 2015.
On May 19, 2008, the City Council authorized the issuance of $17,890,000 limited tax general obligation judgment bonds for the purpose of paying a part of a tax refund to The Midland Cogeneration Venture (MCV), as ordered by the Michigan Tax Tribunal’s Consent Judgment, dated April 18, 2008. The sale of the bonds occurred on June 17, 2008, with the City taking possession of the proceeds on July 10, 2008, and issuing the refund to MCV on July 17, 2008. Future funding for this bond’s debt service will come from the General Fund.
On June 13, 2012, the City issues $4,550,000 of General Obligation Unlimited Tax Refund Bonds. The bonds provide for an interest rate of .70 to 3.55 percent. The proceeds of these bonds were used to advance refund $4,325,000 of outstanding 2004 General Obligation Unlimited Bonds with an interest rate of 3.75 to 4.75 percent.
The 2001 Sewer Construction Bonds were approved by the voters in a general election held on February 22, 2000. The City Council has approved a resolution to levy a millage to pay approximately 60 percent of the principal and interest cost of these bonds. The 40 percent balance of the obligation is to be repaid by fees from the users of the municipal sanitary sewage collection and treatment system. The proceeds were being used for construction of sewer facilities recorded in the Wastewater Fund. On September 12, 2005, General Obligation Unlimited Tax Bonds were issued to refund $9,025,000 of the outstanding bond.
The City has pledged its full faith and credit on the bonded indebtedness of the Saginaw-Midland Municipal Water Supply Corporation, a jointly owned raw water system described in Note 1 – Summary of Significant Accounting Policies. By statute, the City’s general obligation debt is restricted to 10 percent of the equalized value of all property in the City. Certain obligations, such as water revenue refunding bonds, are not subject to this limitation. At June 30, 2015, the City’s general obligation debt statutory and legal debt limit amounted to $256,194,110 and the indebtedness subject to the limitation aggregated $27,905,870.
On December 3, 2001, the City Council authorized issuance of general obligation limited tax bonds, series 2001, in the principal sum not to exceed $5,130,000. The purpose of this issuance was to fund the construction of a storm water retention basin at the wastewater treatment plant. User fees will fund 40 percent of the principal and interest on these bonds and the remaining 60 percent will be funded by a millage that the City has levied. The full faith and credit and the limited taxing power of the City are pledged for payment of the 3 - 37
City of Midland, Michigan
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Notes to the Financial Statements June 30, 2015 Annual debt service requirements to maturity for the above obligations are as follows: Governmental Activities Fiscal Year 2016 2017 2018 2019 2020 2021 - 2025 2026 - 2030 2030 - 2033
Principal $
Business-type Activities
Interest
1,435,000 1,485,000 1,540,000 1,600,000 1,655,000 6,000,000 1,745,000 375,000
$
$ 15,835,000
$
574,084 520,522 463,510 404,247 342,735 737,705 139,173 2,786 3,184,762
Deferred Amount of Debt Refunding The City issued bonds in 2012 to advance refund and retire previously issued term bonds. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt. This amount is reported in the accompanying statement of net position as a deferred outflow of resources and is being charged to activities through the fiscal year.
Principal $
Interest
1,430,000 1,490,000 1,510,000 1,535,000 1,570,000 3,034,063 1,615,000 -
$
$ 12,184,063
$
290,378 240,455 213,384 185,333 156,200 453,620 169,020 -
Deferred amount on refunding activity is summarized as follows: Beginning Balance
Additions
Ending Balance
Reductions
Less deferred charge on defeasance
$
596,260
$
-
$
307,430
$
288,830
1,708,390
Defeased Debt In prior years, the City has defeased a bond issued by creating separate irrevocable trust funds. New debt has been issued and the net proceeds of the refunding was placed in a special escrow account and invested in securities of the U.S. Government and its agencies. The investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the refunded bonds are considered to be defeased. Accordingly, the trust account assets and liability for the defeased bonds are not included in the City’s financial statements. At June 30, 2015, $3,985,000 of bonds outstanding are considered defeased.
Advanced Refunding On February 3, 2015, the City issued general obligation bonds of $5,965,000 (par value) with an interest rate of 1.69% to advance refund term bonds with an interest rate of 3.65% to 4.15% and a par value of $5,910,000. The term bonds mature on May 1, 2021, respectively. After issuance costs of $50,033, the net proceeds were $6,028,967. The net proceeds from the issuance of the general obligation bonds were deposited with an escrow agent to provide debt service payments until the term bonds mature. The advance refunding met the requirements of an in-substance debt defeasance and the term bonds were removed from the City’s financial statements. As a result of the advance refunding, the City reduced its total debt service requirements by $436,571, which resulted in an economic gain of $411,680.
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015 determined (due to changes in technology or applicable laws or regulations, for example), these costs may need to be covered by charges to future landfill users or from future tax revenue.
Note 11 - Landfill Closure and Postclosure Care Cost State and federal laws and regulations require the City to place a final cover on its sanitary landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after closure. Although closure and post closure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and post closure care costs as operating expense in each period based on landfill capacity used as of each year end. The $3,883,000 reported as landfill closure and post closure care liability at June 30, 2015 represents the cumulative amount reported to date based on the use of 100 percent of the capacity of Area A (32 acres closed in 1993) and cells 1 through 13 (40.2 acres closed in 2005), cell 14 (12.6 acres), 85 percent of the estimated capacity of cell 15, and 24 percent of the estimated capacity of cell 16.
The City has also entered into an agreement to provide a letter of credit in favor of the State of Michigan to fulfill certain bonding requirements imposed upon the City, by Michigan law. Note 12 - Restricted Assets Cash and cash equivalents are restricted within the Water and Wastewater Funds for future debt service obligations in the amounts of $93,250 and $1,232,541, respectively. Within each of these funds, an offsetting liability “payable from restricted assets” designates the separation of these assets from unreserved assets. In addition, the Landfill Fund has $2,188,765 of restricted assets that are for closure and postclosure costs. The Water Fund also has $25,000 of restricted assets for emergency repair.
The City will recognize the remaining estimated cost of closure and post closure care of $901,803 as the remaining capacity of cells 15 and 16 are filled.
Note 13 - Employee Retirement and Benefit Systems
These amounts are based on what it would cost to perform all closure and postclosure care in current dollars. The City expects to reach 100 percent capacity in cell 15 during the fiscal year ending June 2017 and in cell 16 during the fiscal year ending June 30, 2023. The actual cost may be higher due to inflation, changes in technology, or changes in regulations.
Police and Fire Pension System Plan Description – The Police and Fire Pension System is a singleemployer defined benefit pension plan that is administered by the City of Midland Police and Fire Employees Retirement System. This plan covers all police and fire employees of the City. The system provides retirement, disability, and death benefits to plan members and their beneficiaries. At December 31, 2014, the date of the most recent actuarial valuation, membership consisted of 132 retirees and beneficiaries currently receiving benefits, 3 inactive and non-retired members, and 88 current active employees. The plan does not issue a separate financial report.
The City is required by state and federal laws and regulations to make contributions to a Trust to finance closure and postclosure care. The City is in compliance with these requirements, and at June 30, 2015, cash and cash equivalents in the amount of $2,188,765 were held for these purposes, and reported as restricted assets on the balance sheet. The City expects that future inflation costs will be paid from interest earnings on these contributions. However, if interest earnings are inadequate or additional postclosure care requirements are 3 - 39
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
Funding policy – The obligation to contribute to and maintain the system for these employees was established by negotiation with the City’s collective bargaining units and requires a contribution from the employees of 8 percent of gross wages from all employees. The City’s funding policy provides for biweekly employee contributions and monthly employer contributions at actuarially determined rates. Administrative costs of the plan are financed through investment earnings. The required schedule of funding progress immediately following the notes to the financial statements presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
As of December 31, 2014, the plan’s legally required reserves have been fully funded as follows: Reserve for employees' contributions Reserve for employer contributions Reserve for retired benefit payment
$
5,179,815 2,266,467 52,582,835
Net pension liability – The City’s net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation dated December 31, 2014 using the following actuarial assumptions applied to all periods included in the measurement:
Contributions – Plan member contributions are recognized in the period in which the contributions are due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Please refer to Note 1 for further significant accounting policies
Inflation Salary increases Investment rate of return
4% 4% to 9.2% including inflation 7% net of pension plan investment expense, including inflation
Mortality rates were based on the RP-2000 Mortality Table projected 10 years. The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an actuarial experience study for the period of 2002-2017, with an additional table added in the 2011 valuation for members hired after July 1, 2011.
Accounting policy – 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 System has been determine on the same basis as they are reported by the City. 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.
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Notes to the Financial Statements June 30, 2015 Changes in net pension liability:
The long-term expected rate of return on pension 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 pension 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 pension plan’s target asset allocation as of June 30, 2015 are summarized in the following table:
Asset Class U.S. large cap equity U.S. mid cap U.S. small cap International/EM equity Cored fixed income
Target Allocation 30.00% 8.00% 8.00% 19.00% 35.00%
Total Pension Liability Opening balances Changes for the year Service cost Interest Difference between expected and actual experience Employer contributions Employee contributions Net investment income Benefit payments, including refunds of employee contributions Other
Long-term Projected Rate of Return 6.50% 7.10% 7.70% 6.40% 0.60%
Net changes
A single discount rate of 7.00 percent was used to measure the total pension liability. This single discount rate was based on an expected rate of return on pension plan investments of 7.00 percent and municipal bond rate of 3.80 percent. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate.
Closing balances
Plan Fiduciary Net Position
$ 76,769,954
$ 60,905,514
1,792,921 5,239,339
-
782,304 -
2,466,484 562,157 2,613,608
(5,637,423) -
(5,637,423) -
2,177,141 $ 78,947,095
$
Net Pension Liability $ 15,864,440
1,792,921 5,239,339 782,304 (2,466,484) (562,157) (2,613,608)
-
4,826
2,172,315
60,910,340
$ 18,036,755
The City’s annual money-weighted rate of return, net of investment expenses is 4.38%. The plan’s net position as a percent of total pension liability is 77.15%
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Notes to the Financial Statements June 30, 2015 Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan’s net pension liability, calculated using a single discount rate of 7.00 percent, as well as what the plan’s net pension liability would be if it were calculated using a single discount rate that is one percentage point lower or one percentage point higher: Current Single Rate 7.00%
1% Decrease 6.00%
Amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended, 2016 2017 2018 2019 Total
1% Increase 8.00%
Total pension liability Plan fiduciary net position
$ 88,295,389 60,910,340
$
78,947,095 60,910,340
$ 71,124,564 60,910,340
Net pension liability
$ 27,385,049
$
18,036,755
$ 10,214,224
Deferred outflows of resources $
Total
$
478,807 478,807 478,807 425,547
$
1,861,968
Municipal Employee’s Retirement System of Michigan – Defined Benefit Retirement Plan Plan description – The City participates in the Michigan Municipal Employees’ Retirement System (MERS), an agent multiple-employer defined benefit pension plan that covers substantially all employees of the City other than police and fire employees and employees hired on or after July 1, 2005. The system provides retirement, disability and death benefits to plan members and their beneficiaries. MERS issues a publicly available financial report that includes financial statements and required supplementary information for the system. That report may be obtained by writing to MERS at 1134 Municipal Way, Lansing, Michigan 48917 or on the web at http://www.mersofmich.com.
Deferred outflows of resources related to pensions – For the year ended June 30, 2015, the employer reported deferred outflows of resources related to pensions from the following sources:
Difference between expected and actual experience Net difference between projected and actual earnings on pension plan investments
$
Benefits provided – Benefits provided include plans with multiplier of 2.50%. Vesting period is 10 years. Normal retirement age is 60 with early retirement at 55 with range of 15 to 20 years of service. Final average compensation is calculated based on 3 to 5 years. Member contributions range from 0% to 5%.
615,191 1,246,777 1,861,968
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
Employees covered by benefit terms – At the December 31, 2014 valuation date, the following employees were covered by benefit terms:
Although no specific price inflation assumptions are needed for the valuation, the 4.5% long-term wage inflation assumption would be consistent with a price inflation of 3-4%.
Inactive employees or beneficiaries currently receiving benefits Inactive employees entitles to but not yet receiving benefits Active employees
Mortality rates used were based on the 1994 Group Annuity Mortality Table of a 50% male and 50% female blend. For disabled retirees, the regular mortality table is used with a 10-year set forward in ages to reflect the higher expected mortality rates of disabled members.
307 24 132
The actuarial assumptions used in valuation were based on the results of the most recent actuarial experience study.
463
Contributions – The employer is required to contribute amounts at least equal to the actuarially determined rate, as established by 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 employer may establish contribution rates to be paid by its covered employees. Employer contributions range from 16.29% to 55.50% based on annual payroll for open divisions.
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 or arithmetic real rates of return for each major asset class are summarized in the following table:
Net pension liability – The employer’s net pension liability was measured as of December 31, 2014, and the total pension liability used to calculate the net pension liability was determined by an annual actuarial valuation as of that date.
Asset class Global equity Global fixed income Real assets Diversifying strategies
Actuarial assumptions – The total pension liability in the December 31, 2014 annual actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement include: 1) Inflation 3-4%; 2) Salary increases 4.5% in the long-term (1%, 2%, and 3% for calendar years 2014, 2015, 2016, respectively); 3) Investment rate of return of 8%, net of investment expense, including inflation.
Long-Term Target Expected Real Allocation Rate of Return 57.5% 5.02% 20.0% 2.18% 12.5% 4.23% 10.0% 6.56%
Discount rate – The discount rate used to measure the total pension liability is 8.25%. The projection of cash flows used to determine the discount rate assumes that employer and employee contributions will be made at the rates agreed upon for employees and the actuarially determined rates for employers. Based on these assumptions, the 3 - 43
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
pension plans fiduciary net positon 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.
Sensitivity of the net pension liability to changes in the discount rate – The following presents the net pension liability of the employer, calculated using the discount rate of 8.25%, as well as what the employer’s net pension liability would be using a discount rate that is 1% point lower (7.25%) or 1% higher (9.25%) than the current rate.
Change in the net pension liability: Total Pension Liability Service cost Interest on the total pension liability Benefit payments and refunds
$
Net change in total pension liability
1,243,931 10,390,626 (8,660,169) 2,974,388
Total pension liability - beginning
129,655,095
Total pension liability - ending (a)
$ 132,629,483
Plan Fiduciary Net Position Employer contributions Employee contributions Pension plan net investment income Benefit payments and refunds
$
Pension plan administrative expense Net change in plan fiduciary net position
Plan fiduciary net position - ending (b)
77,209,112
Net pension liability (a-b)
$
55,420,371
Plan fiduciary net position as a percentage of total pension liability Covered employee payroll Net pension liability as a percentage of covered employee payroll
$
58.21% 8,685,943
1% Increase $ 120,829,934 77,209,112
Net pension liability
$ 69,246,988
$ 55,420,371
$ 43,620,822
Deferred Outflows of Resources Net difference between projected and actual earnings on pension plan investments Contributions subsequent to the measurement date*
999,919 76,209,193
Current Discount Rate $ 132,629,483 77,209,112
Pension expense and deferred outflows of resources related to pensions – For the year ended June 30, 2015, the employer recognized pension expense of $5,141,787. The employer reported deferred outflows related to pensions from the following sources:
4,968,968 120,825 4,743,891 (8,660,169) (173,596)
Plan fiduciary net position - beginning
Total pension liability Fiduciary net position
1% Decrease $ 146,456,100 77,209,112
Total
$
1,111,144 2,801,298
$
3,912,442
*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 2016.
638.05%
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Notes to the Financial Statements June 30, 2015 Amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended, 2016 2017 2018 2019 2020 Total
$
222,229 222,229 222,229 222,229 222,228
$
1,111,144
the date of employment. As established by City Council resolution, the City will contribute up to 7 percent of the employee’s wages with 100 percent matching of the employee wage contributions, in 1 percent increments. The City’s total payroll during the current year was $23,471,513. The current year contribution was calculated based on covered payroll of $5,268,005, resulting in an employer contribution of $280,726 and employee contributions of $280,726. Note 14 - Postemployment Benefits The City provides postemployment healthcare coverage under a traditional insured plan to retired employees and their qualified spouses and other dependents, as mandated by collective bargaining agreements. Each agreement contains variations of the following general guidelines. Most employees fall into one of the following general groups:
Municipal Employee’s Retirement System of Michigan – Defined Contribution Retirement Plan The City participates in the Municipal Employee’s Retirement System of Michigan (MERS) defined contribution plan for all employees hired on or after July 1, 2005, with the exception of police and fire employees. In the defined contribution plan, benefits depend solely on the amounts contributed to the plan plus investment earnings. Employees are eligible to participate from the date of employment. As established by City Council resolution, the City contributes 5 percent of the employee’s gross earnings in the plan. The employee is fully vested after five years of service or at age 65.
The first group of employees will be enrolled in the comprehensive medical plan available at the time of retirement. The City will pay 100 percent of the premium for retiree, spouse, and family. The second group of employees will be eligible for continued medical coverage when they retire from the City, providing they pay 50 percent of the premium. The City will pay the other 50 percent.
The City’s total payroll during the current year was $23,471,513. The current year contribution was calculated based on covered payroll of $5,268,005, resulting in an employer contribution of $263,402. Employee contributions were $0.
The third group, employees hired on or after July 1, 2005, excluding police and fire employees, will not be eligible to be included in the City’s group health insurance plan. For those employees, the City will contribute 2 percent of the employee’s wages into a healthcare savings program.
International City/County Management Association (ICMA) – RC 457 – Deferred Compensation Plan The City also participates in an ICMA-RC 457 deferred compensation plan for all employees hired on or after July 1, 2005, with the exception of police and fire employees. In the deferred compensation plan, benefits depend solely on the amounts contributed to the plan plus investment earnings. Employees are eligible to participate from 3 - 45
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Notes to the Financial Statements June 30, 2015 The City funds the retiree health insurance on a “pay as you go” basis. The net cost to the City of providing postemployment health care coverage follows: Year 2013 2014 2015
Number of Retirees 358 379 389
Contributions in the program consist of 2% of the employee’s wages by the City and employees for a total of 4%. The 2% employee contribution is mandatory. A vesting period of 3 years will apply for all employer contributions to the Health Care Savings Program.
Amount $ 4,617,438 4,829,226 5,058,810
The current year contribution was calculated based on a covered payroll of $724,674, resulting in an employer contribution of $14,494 and employee contributions of $14,494. Fire employees hired on or after November 14, 2011 are not eligible to participate in the City retiree health insurance plan. In lieu of participation in the City retiree health insurance plan, employees shall participate in a Health Savings Account (HSA) to accumulate funds for post-employment health care costs. The City shall contribute 2% of compensation to the HSA. An employee contribution to the HSA will not be available effective July 1, 2013.
During the fiscal year, the City transferred $327,049 to Municipal Employee’s Retirement System of Michigan (MERS) Retiree Health Funding Vehicle. MERS acts as a fiduciary, investing and managing funds for the future payment of postemployment healthcare coverage for the City of Midland. The covered wages for the retiree health post employment for the fiscal year were $12,158,864.
The current year contribution was calculated based on a covered payroll of $479,846 resulting in an employer contribution of $9,597 and employee contributions of $0.
Health Care Savings Program The City participates in the Municipal Employee’s Retirement System of Michigan (MERS) healthcare savings program for all employees hired on or after July 1, 2005, with the exception of police and fire employees. In the healthcare savings program, benefits depend solely on the amounts contributed to the plan plus investment earnings. Employees are eligible to participate from the date of employment. As established by City Council resolution, the City contributes 2 percent of the employee’s gross earnings in the program. The employee is fully vested after three years of service.
Other Postemployment Benefits Plan description. The City of Midland’s Retiree Healthcare Plan (the “Plan”) is a single-employer defined benefit healthcare plan administered by the City. The Plan provides 100% of health insurance benefits to eligible retirees and their dependents. The benefit is provided upon general administrative employees attaining 55 years of age, with 20 years of service to the City, and public safety employees are eligible with 25 years of service regardless of age. The City established a retirement health savings trust to account for the Plan.
The City’s total payroll during the current year was $23,471,513. The current year contribution was calculated based on covered payroll of $5,252,367, resulting in an employer contribution of $105,048. Police employees hired on or after July 1, 2011 are not eligible to participate in the City retiree health insurance plan. Employees hired after these dates participate in a Health Care Savings Program. 3 - 46
Funding policy. The contribution requirements of Plan members and the City are established and may be amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits as determined annually by the City. For the year ended June 30, 2015, the City contributed $5,097,424 to the plan which was the
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Notes to the Financial Statements June 30, 2015 Annual Required Contribution (ARC). Beginning with the fiscal year ending June 30, 2009, the City was required to begin recognizing expenses for OPEB costs in the government-wide and proprietary fund financial statements based on an actuarially determined annual required contribution (ARC).
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2015 is as follows:
Year Ended
Annual OPEB Cost and Net OPEB Obligation. The City’s other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarially accrued liabilities (or funding excess) over a period not to exceed thirty years.
6/30/2015 6/30/2014 6/30/2013
$
Contributions made to OPEB Trust
5,097,424 -
Net OPEB liability, beginning of year
-
Net OPEB liability, end of year
$
5,097,424 5,103,471 5,800,533
100% 100% 100%
Net OPEB Obligation $
-
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
(5,097,424)
Change in net OPEB obligation
$
Percentage of Annual OPEB Cost Contributed
Funded status and funding progress. As of June 30, 2014 the date of the most recent actuarial valuation, the Plan was 46.2% funded. The actuarial accrued liability for benefits was $85,125,933, and the actuarial value of assets was $39,331,790, resulting in an unfunded actuarial accrued liability (UAAL) of $45,794,143.
The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the City’s net OPEB obligation: Annual required contribution
Annual OPEB Cost
-
Actuarial methods and assumptions. Projections of benefits for financial reporting purposes are based on the substantive Plan (the Plan as understood by the employer and the Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and Plan members to the point. The actuarial methods and 3 - 47
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
Note 16 - Enterprise Fund Contractual Revenue The City supplies large quantities of water to Dow Chemical Company and Dow Corning Corporation under contractual arrangements with each company. Under the Dow Chemical Supplemental Agreement dated March 1, 1979, and the Dow Corning Agreement dated July 15, 1985, the companies agree to pay for the variable cost of industrial grade water. In addition, the companies agree to pay a percentage of certain fixed costs, including the principal and interest costs on debt incurred by the City related to plant expansions necessary to meeting the companies’ special requirements. These fixed cost payments are due in monthly installments until the bonds of the Saginaw-Midland Municipal Water Supply Corporation are paid in full.
In the June 30, 2014 actuarial valuation, the individual entry age actuarial cost method was used. The actuarial assumptions includes: (a) a rate of return on investments of 8.0%; (b) projected salary increases of 4.0% attributable to inflation; (c) additional projected salary increases ranging from .3% to 13.0%, depending on age, attributable to seniority/merit; and (d) projected healthcare benefit increases of 4.0% to 9%. The actuarial value of assets is set to the reported market value of the assets. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll over 24 years. The plan is open.
The payment percentage is based upon the cost of the facilities required to meet the companies’ exact capacity requirements relative to the total cost of the City’s initial capacity requirements.
Note 15 - Claims, Litigation, and Other Contingencies In the normal course of its activities, the City becomes a party in various legal actions. Although some actions have been brought for large amounts, the City has not generally experienced significant losses or cost. City management is of the opinion that the outcome of such actions will not have a material effect on the financial position of the City.
The percentage of the bond principal and interest payments reimbursed by each company follows:
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial.
Percentage Dow Chemical Company
Dow Corning Corporation
1998 Saginaw-Midland - Water Revenue Refinancing Bonds
34.00%
4.20%
2002 Saginaw-Midland - Water Revenue Refinancing Bond 2006 Saginaw-Midland - Water Revenue Bonds 2009 Saginaw-Midland - Water Revenue Bonds
34.00% 34.00% 34.00%
4.20% 4.20% 4.20%
Total payments received under these agreements during the fiscal year were $449,101, consisting of principal and interest of $412,057 and $37,044, respectively. These payments have been recorded as nonoperating revenue in the City’s Enterprise Funds. Under the terms of these agreements, no equity accrues to either company. 3 - 48
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City of Midland, Michigan Notes to the Financial Statements June 30, 2015
Under the terms of the agreement with Dow Chemical Company, the Water Fund shall retain in a Dow Chemical Emergency Repair and Maintenance Fund, $25,000 to fund Dow’s share of non-budgeted repair, replacement, or improvements.
Note 18 - Risk Management The City is exposed to various risks of loss related to property loss, torts, errors and omissions and employee injuries (workers’ compensation), as well as medical benefits provided to employees. The City has purchased commercial insurance for liability and property claims, airport liability, and pension fiduciary liability claims; it participates in the Michigan Municipal Workers’ Compensation Pool for employee injury claims.
Note 17 - Urban Cooperation Act Agreement Effective December 30, 1992, the City entered into a 30-year interlocal public agency agreement with the Township of Midland, as authorized by the provisions of Public Act 7 of the Public Acts of the State of Michigan of 1967 (Ex Sess) [MSA 5.4088(1) et seq; MCLA 124.501 et seq].
The Michigan Municipal League risk pool programs operate as common risk-sharing/management programs for local units of government in Michigan. Member premiums are used to purchase commercial excess insurance coverage and to pay member claims in excess of deductible amounts.
The agreement provides for (1) the orderly and uncontested annexation to the City of certain property then located in the Township; (2) future sharing, through the year 2022, of revenues derived from the City’s levy of property taxes on certain property to be annexed under the agreement; (3) beginning in September 1993, and continuing through the year 2012, the sharing of revenues derived from the City’s levy of property taxes on certain commercial and industrial property already located within the City; and (4) extension, at City cost, of water and sewer services by the City to the Township boundary.
Beginning July 1, 2007, the City started a self-insurance program for health insurance, which is accounted for in the Health Insurance Fund (Internal Service Fund). An independent administrator (BCBS) processes the daily claims. The City has a $40,000 stop-loss, per contract. There were no reductions to insurance coverage from the prior year. The cost for health care is charged out to other City funds through its payroll system based upon illustrative rates generated by BCBS. These charges, together with employee withholdings, are the source of revenue to the Health Insurance Fund. Settled claims for the past three years, including the current year, as well as the prior two years relating to the commercial health insurance, have not exceeded the amount of insurance coverage.
The City’s obligation under provision 3 above shall cease if and when total cumulative payments there under reach $15,000,000. The amount of revenue sharing due to the Township by the City under this agreement during the year ended June 30, 2015 was $133,160. The total cumulative payments from the City through June 30, 2015 were $3,953,287.
The City estimates the liability for healthcare claims that have been incurred through the end of the fiscal year, including claims that have been reported as well as those that have not yet been reported.
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Notes to the Financial Statements June 30, 2015 The estimated liability is recorded in accrued and other liabilities in the Statement of Net Position. The estimated liability for the past two fiscal years is as follows: Unpaid claims - beginning of year
2015 $ 1,071,763
Incurred claims, including claims incurred but not reported Claims paid Unpaid claims - end of year
$
$
The impact also changed the beginning net position of the following proprietary and internal service funds: Beginning Net Position
2014 958,743
7,977,047
8,678,159
(8,642,708)
(8,565,139)
406,102
$ 1,071,763
Note 19 - Change in Accounting Principle As indicated in Note 1, the City has adopted Governmental Accounting Standards Board Statements 68 and 71. These statements require the Government to record their net pension liability and pension expense. Previously these amounts were not recorded on the City’s statements. The standards require this change be applied retroactively. The impact of this change is to reduce beginning governmental activities net position in the statement of activities as of July 1, 2014, by $48,621,953, restating it from $111,245,675 to $62,623,722. The beginning net position of the business-type activities in the statement of activities was restated as of July 1, 2014 by $16,534,472, restating it from $138,721,193 to $122,186,721.
Water Wastewater Sanitary Landfill Civic Arena Washington Woods Riverside Place Parking Information Services Equipment Revolving Municipal Services Center Renewable Energy Services
$ 56,832,396 34,991,627 16,323,684 3,388,196 4,777,960 8,899,255 1,608,077 2,272,650 8,863,101 2,302,954 3,846,308
Change
Restated Beginning Net Position
$ (7,550,335) $ 49,282,061 (3,945,495) 31,046,132 (2,582,876) 13,740,808 (411,837) 2,976,359 (1,037,217) 3,740,743 (976,205) 7,923,050 (30,507) 1,577,570 (1,337,197) 935,453 (2,308,318) 6,554,783 (30,507) 2,272,447 (305,064) 3,541,244
Note 20 - Change from Previously Issued Financial Statements The City identified an error in the Net Investment in Capital Assets amount for governmental activities reported in the previously issued financial statements, dated December 16, 2015. The schedule below reflects the correction. Total net position was unaffected by this change. As Originally Reported Net investment in capital assets Unrestricted (deficit)
3 - 50
Adjustment
As Restated
$ 82,577,248 $ 10,810,000 $ 93,387,248 (29,000,393) (10,810,000) (39,810,393)
Receiving and fi... - 76 of 189
City of Midland, Michigan Required Supplementary Information Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Taxes Property taxes Other taxes Penalties and interest Administration fee Licenses and permits Federal grants State revenue sharing State grants Local contributions Charges for services Use and admission charges Interest income Rental income Other revenue Sale of fixed assets
$
30,310,678 37,000 100,000 920,000 427,350 4,480 3,413,000 33,829 100,000 2,265,950 237,110 25,000 60,813 1,097,077 39,032,287
Total revenues
4-1
$
30,452,072 39,000 100,000 930,000 400,496 1,034,938 3,413,000 35,000 815,000 2,188,252 266,195 25,000 76,313 1,065,369 800 40,841,435
Actual $
30,605,781 37,522 97,630 929,826 451,751 560,293 3,409,205 59,829 738,950 2,269,657 289,388 28,861 105,133 1,026,538 800 40,611,164
Variance with Final Budget $
153,709 (1,478) (2,370) (174) 51,255 (474,645) (3,795) 24,829 (76,050) 81,405 23,193 3,861 28,820 (38,831) (230,271)
Receiving and fi... - 77 of 189
City of Midland, Michigan Required Supplementary Information Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Expenditures General government Public safety Public works Sanitation Parks and recreation Airport Property tax appeals Reserve for contingencies Capital outlay
$
6,534,464 17,103,401 2,692,070 3,227,153 4,983,652 383,498 429,000 400,000 531,800
$
6,590,070 16,228,912 2,593,510 3,262,941 5,305,143 329,484 737,277 200,000 3,432,944
Actual $
6,140,897 15,817,243 2,477,889 3,214,241 4,832,184 293,214 315,967 1,099,712
Variance with Final Budget $
(449,173) (411,669) (115,621) (48,700) (472,959) (36,270) (421,310) (200,000) (2,333,232)
36,285,038
38,680,281
34,191,347
(4,488,934)
2,747,249
2,161,154
6,419,817
4,258,663
31,000 (5,348,495)
31,000 (5,042,207)
16,498 (4,688,262)
(14,502) 353,945
Total other financing sources (uses)
(5,317,495)
(5,011,207)
(4,671,764)
339,443
Net change in fund balance
(2,570,246)
(2,850,053)
1,748,053
11,171,007
11,171,007
11,171,007
Total expenditures Excess of revenues over expenditures Other financing sources (uses) Transfer in Transfers out
Fund balance - beginning of year Fund balance - end of year
$
4-2
8,600,761
$
8,320,954
$
12,919,060
4,598,106 $
4,598,106
Receiving and fi... - 78 of 189
City of Midland, Michigan Required Supplementary Information Budgetary Comparison Schedule Major Street Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Taxes Licenses and permits Federal grants Other State grants Local contributions Charges for services Interest income Other revenue
$
Total revenues Expenditures Public works Engineering Right of way inspections Roadway maintenance Guardrail maintenance Sweeping and flushing Shoulder maintenance Roadside drainage Curb and gutter maintenance Roadside cleanup Capital outlay Snow and ice control Stormwater activities credit Trunkline maintenance Other charges Reserve for contingencies Traffic services Total public works
2,025,000 96,000 2,855,000 50,000 193,557 4,000 12,000
4-3
2,100,000 96,000 1,162 2,906,604 50,000 212,681 5,000 15,000
$
2,197,581 77,378 7,504 2,990,931 161,594 4,607 22,711
$
97,581 (18,622) 6,342 84,327 (50,000) (51,087) (393) 7,711
5,235,557
5,386,447
5,462,306
226,926 18,502 194,292 7,456 151,033 18,524 102,441 75,692 20,660 2,784,500 526,752 (119,475) 193,557 5,000 20,000 487,932
210,926 20,102 160,650 7,456 151,033 17,665 129,283 75,692 21,434 4,940,604 506,752 (135,791) 212,681 1,000 15,000 508,638
184,676 7,798 126,458 1,929 120,535 2,369 135,341 49,371 18,922 3,141,853 364,114 (154,944) 113,154 87,029 496,066
(26,250) (12,304) (34,192) (5,527) (30,498) (15,296) 6,058 (26,321) (2,512) (1,798,751) (142,638) (19,153) (99,527) 86,029 (15,000) (12,572)
4,713,792
6,843,125
4,694,671
(2,148,454)
521,765
Excess (deficiency) of revenues over expenditures
$
Actual
Variance with Final Budget
(1,456,678)
767,635
75,859
2,224,313
Receiving and fi... - 79 of 189
City of Midland, Michigan Required Supplementary Information Budgetary Comparison Schedule Major Street Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Other financing sources (uses) Transfers in Transfers out
$
Actual
Variance with Final Budget
218,000 $ (1,807,475)
239,065 $ (1,823,791)
239,065 $ (1,842,944)
(19,153)
Total other financing sources and uses
(1,589,475)
(1,584,726)
(1,603,879)
(19,153)
Net change in fund balance
(1,067,710)
(3,041,404)
(836,244)
5,912,587
5,912,587
Fund balance - beginning of year $
Fund balance - end of year
4-4
4,844,877
$
2,871,183
2,205,160
5,912,587 $
5,076,343
$
2,205,160
City of Midland, Michigan
Receiving and fi... - 80 of 189
Required Supplementary Information Municipal Employees Retirement System of Michgan Schedule of Employer Contributions
Actuarial Valuation Date 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Annual Determined Contribution $
2,411,113 2,585,152 2,682,994 2,953,178 3,065,297 3,356,011 3,676,496 3,917,669 4,433,654 4,968,967
Contribution Deficiency (Excess)
Annual Contribution $
2,411,113 2,585,152 2,682,994 2,953,178 3,065,297 3,356,011 3,676,496 3,917,669 4,433,654 4,968,967
$
Covered Payroll -
$
12,935,257 12,537,515 12,173,842 11,873,441 11,011,467 10,363,303 9,897,469 9,227,199 8,741,747 8,685,943
Actual Contribution as a % of Covered Payroll 18.64% 20.62% 22.04% 24.87% 27.84% 32.38% 37.15% 42.46% 50.72% 57.21%
Notes: Actuarially determined contribution amounts are calculated as of December 31 each year, which is 6 months prior to the beginning of the fiscal year in which contributions are reported. Methods and assumptions used to determine contirbution rates: Actuarial cost method Amortization method Remaining amortization period
Individual entry-age Fixed 13 for closed divisions and 24 for open divisions 10-year smoothed value of assets 3.00-4.00% 4.50% 8.00% 60 1994 Group annuity mortality table of 50% male and 50% female blend
Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality
4-5
City of Midland, Michigan
Receiving and fi... - 81 of 189
Required Supplementary Information Municipal Employees Retirement System of Michigan Schedule of Changes in Net Pension Liability and Related Ratios Fiscal year ended June 30,
2015
Total Pension Liability Service cost Interest on the total pension liability Benefit payments and refunds
$
1,243,931 10,390,626 (8,660,169) 2,974,388 129,655,095
Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a)
$
Plan Fiduciary Net Position Employer contributions Employee contributions
$
Pension plan net investment income Benefit payments and refunds Pension plan administrative expense
132,629,483 4,968,968 120,825 4,743,891 (8,660,169) (173,596)
Net change in plan fiduciary net position Plan fiduciary net position - beginning
999,919 76,209,193
Plan fiduciary net position - ending (b)
77,209,112 $
Net pension liability (a-b)
55,420,371 58.21% 8,685,943 638.05%
Plan fiduciary net position as a percentage of total pension liability Covered employee payroll Net pension liability as a percentage of covered employee payroll *GASB Statement No. 68 was implemented for the fiscal year ended June 30, 2015 and does not require retroactive implementation. Data will be added as information is available until 10 years of such data is available.
4-6
City of Midland, Michigan
Receiving and fi... - 82 of 189
Required Supplementary Information Municipal Employees Retirement System of Michigan Schedule of Employers' Net Pension Liability
Fiscal Year Ended June 30, 2015
Total Pension Liability $
132,629,483
Plan Net Position $
77,209,112
Net Pension Liability $
55,420,371
Plan Net Position as a % of Total Pension Liability 58.21%
Covered Payroll $
8,685,943
Net Pension Liability as a % of Covered Payroll 638.05%
*GASB Statement No. 68 was implemented for the fiscal year ended June 30, 2015 and does not require retroactive implementation. Data will be added as information is available until 10 years of such data is available.
4-7
City of Midland, Michigan
Receiving and fi... - 83 of 189
Required Supplementary Information Police and Fire Retirement System Schedule of Changes in Net Pension Liability and Related Ratios Fiscal year ended June 30,
2015
Total pension liability Service cost Interest on the total pension liability Difference between expected and actual experience of the total pension liability Benefit payments and refunds
$
1,792,921 5,239,339 782,304 (5,637,423)
Net change in total pension liability
2,177,141
Total pension liability - beginning of year
76,769,954
Total pension liability - end of year (a) Plan fiduciary net position Employer contributions Employee contributions Pension plan net investment income Benefit payments and refunds
$
78,947,095
$
2,466,484 562,157 2,613,608 (5,637,423)
Net change in plan fiduciary net position
4,826
Plan fiduciation net position - beginning of year
60,905,514
Plan fiduciation net position - end of year (b)
$
60,910,340
Net pension liability - ending (a) - (b)
$
18,036,755
Plan fiduciary net position as a percentage of total pension liability
77.15%
Covered employee payroll
$
Net pension liability as a percentage of covered employee payroll
7,027,322 256.67%
4-8
City of Midland, Michigan
Receiving and fi... - 84 of 189
Required Supplementary Information Police and Fire Retirement System Schedule of Net Pension Liability
Fiscal Year Ended June 30, 2014 2015
Total Pension Liability $
76,769,954 78,947,095
Plan Net Position $
60,905,514 60,910,340
Net Pension Liability $
15,864,440 18,036,755
Plan Net Position as a % of Total Pension Liability 79.34% 77.15%
Covered Payroll $
Net Pension Liability as a % of Covered Payroll
6,904,434 7,027,322
Note: Information from 2005 - 2013 is not available. Additional years will be presented on this schedule on a prospective basis.
4-9
229.77% 256.67%
City of Midland, Michigan
Receiving and fi... - 85 of 189
Required Supplementary Information Police and Fire Retirement System Schedule of Contributions
Fiscal Year Ended June 30, 2014 2015
Annual Determined Contribution $
2,572,418 2,466,484
Contribution Deficiency (Excess)
Annual Contribution $
2,572,418 2,466,484
$
Actual Contribution as a % of Covered Payroll
Covered Payroll -
$
6,904,434 7,027,322
37.26% 35.10%
Note: Information from 2005 - 2013 is not available. Additional years will be presented on this schedule on a prospective basis. The information presented above was determined as part of the actuarial valuations at the date indicated. Additional information as of December 31, 2014, the latest actuarial valuation, follows: Actuarial cost method
Entry age
Amortization method
Level percent of payroll
Amortization period (perpetual)
25 years, closed
Asset valuation method
4-year smoothed market
Actuarial assumptions: Investment rate of return Projected salary increases Includes inflation at
7.0% 4.0% to 9.2% 3.0%
4 - 10
City of Midland, Michigan
Receiving and fi... - 86 of 189
Required Supplementary Information Police and Fire Retirement System Schedule of Investment Returns
Fiscal Year Ended June 30,
Annual Return % *
2014 2015
16.19% 4.38%
* Annual money-weighted rate of return, net of investment expenses Note: Information from 2005 - 2013 is not available. Additional years will be presented on this schedule on a prospective basis.
4 - 11
City of Midland, Michigan
Receiving and fi... - 87 of 189
Required Supplementary Information Other Post Employment Benefits Schedule of Funding Progress
Actuarial Valuation Date 6/30/08 6/30/10 6/30/12 6/30/14
Actuarial Accrued Liability (AAL) (b)
Actuarial Value of Assets (a) $
17,313,617 21,010,920 28,750,211 39,331,790
$
89,750,314 81,681,092 76,021,289 85,125,933
Note: Valuation is performed every other year, so the next valuation report will be June 30, 2016.
4 - 12
Unfunded AAL (UAAL) (b-a) $
72,436,697 60,670,172 47,271,078 45,794,143
Funded Ratio (Percent) (a/b) 19.3% 25.7% 37.8% 46.2%
City of Midland, Michigan
Receiving and fi... - 88 of 189
Required Supplementary Information Other Post Employment Benefits Schedule of Employer Contributions Annual Required Contribution
Year Ended June 30 2010 2011 2012 2013 2014 2015
$
Actual Contribution
6,518,128 6,629,537 5,747,843 5,800,533 5,103,471 5,097,424
$
6,518,128 6,629,537 5,747,843 5,800,533 5,103,471 5,097,424
Percentage Contributed 100% 100% 100% 100% 100% 100%
The information presented above was determined as part of the actuarial valuations at the date indicated. Additional information as of June 30, 2014, the latest actuarial valuation, follows: Actuarial cost method
Entry age
Amortization method
Level dollar
Amortization period (perpetual)
24 years
Asset valuation method
Reported at market
Actuarial assumptions: Investment rate of return Projected salary increases Includes inflation at Additional salary increases attributable to seniority/merit
8.0% 4.0% 4.0% 0.3% to 13.0%
4 - 13
Receiving and fi... - 89 of 189
City of Midland, Michigan Note to the Required Supplementary Information Year Ended June 30, 2015
NOTE – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgetary Information – Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General Fund, Special Revenue Funds, and Debt Service Fund. All annual appropriations lapse at the end of the fiscal year, except as noted. On or before the second Monday in April, the City Manager presents the proposed budget to the City Council for review. The City holds public hearings and a final budget must be prepared and adopted no later than the fourth Monday in May. During the current year, the budget was amended in a legally permissible manner. The City Council approves the annual budget, which is prepared at the functional level. Encumbrance accounting is employed in governmental funds. Encumbrances (purchase orders, contracts, and other commitments for the expenditure of monies) outstanding at year end are reported as committed fund balance since they do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. The City did not adopt a budget for the Cemetery Permanent Fund. Accordingly, no budget comparison schedule is provided.
4 - 14
Receiving and fi... - 90 of 189
City of Midland, Michigan Other Supplementary Information Nonmajor Governmental Funds Fund Descriptions Year Ended June 30, 2015
Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Local Street Fund – This fund accounts for the maintenance and construction of streets designated by the Michigan Department of Transportation as local streets. Center City Authority Fund - This fund accounts for the economic growth in the City Center as it becomes a destination for endless possibilities to eat, shop, and explore. Stormwater Management Fund – This fund accounts for storm sewer maintenance, open drain cleaning, and county drain assessments related to storm water management within the City. Grace A. Dow Memorial Library Fund – This fund accounts for property taxes, library services revenue and a General Fund subsidy to be used for providing library services to the citizens of Midland. Community Development Block Grant Fund – This fund accounts for grant revenues from the Department of Housing and Urban Development to be used for residential and other capital improvements. Dial-A-Ride Fund – This fund accounts for the City’s Dial-A-Ride transportation system. Downtown Development Authority Fund – This fund accounts for property taxes levied by and authority established for the purpose of maintaining and renovating the downtown Midland area. Midland Community Television Fund – This fund accounts for franchise fees generated by an agreement with a local cable company to support two public access channels operated by the City. Special Activities Fund – This fund accounts for various types of activities that are specifically funded by outside parties, not appropriate to be accounted for in any other Special Revenue Fund, and for which the City is the benefactor of those activities. Midland Housing Fund – This fund is used to account for a housing rehabilitation program, which was established by a local foundation. Debt Service Fund The Debt Service Fund accounts for the servicing of general long-term debt not being financed by proprietary or nonexpendable trust funds. Permanent Fund The Cemetery Fund is used to account for the Midland Cemetery perpetual care principal and interest earnings.
5-1
City of Midland, Michigan
Receiving and fi... - 91 of 189
Other Supplemental Information Combining Balance Sheet Nonmajor Governmental Funds June 30, 2015 Debt Service Fund
Special Revenue Funds
Local Street Fund Assets Cash and cash equivalents $ 3,845,106 Receivables - net of allowances for uncollectibles: Taxes Trust deeds Accounts and contracts Accrued interest and other 767 Due from other units of government 282,830 Due from other funds Inventories Total assets Liabilities Accounts payable Due to other funds Deposits Unearned revenue Total liabilities Deferred inflows of resources Grants Customers Trust deeds Total deferred inflows of resources Total liabilities and deferred inflows of resources Fund balances Non-spendable Inventories Restricted for Local street Center city authority Grace A. Dow Memorial Library Downtown development authority Community development block grant Dial-A-Ride Midland housing Special activities Debt service Cemetery operations Committed Future year expenditures Assigned Total fund balances Total liabilities, deferred inflows of resources and fund balances
Center Stormwater City Authority Management Fund Fund
Grace A. Dow Community Memorial Development Library Block Grant Fund Fund
$
$
11,518 -
$
716,973 882 139 -
2
77,508
$
-
435 152 -
1,184,523 33,210 102,583 -
Dial-A-Ride Fund $
-
Downtown Development Authority Fund $
244,294 -
Midland Community Television Fund
Special Activities Fund
833,447
$ 1,390,149
$ 100,183
61,290 221 -
196,560 275 $ 1,586,984
$ 100,194
$
599,667
$
$
$
96,518 102,583 -
$ 4,128,703
$
11,520
$
717,994
$
78,095
$ 1,320,316
$
244,294
$
894,958
$
$
629 -
$
1,155 -
$
39,337 2,290 -
$
$
204,591 32,374
$
17,854 -
176,988 176,988
629
1,155
41,627
43,210 43,210
236,965
1,280 -
-
Midland Housing Fund $
Debt Service Fund $
Cemetery Fund
Total Nonmajor Governmental Funds
7,227
$ 1,955,272
118 60 -
1,838 395 -
553 1,184,523 488,840 2,067 560,334 102,583 152,847
$
7,405
$ 1,957,505
$ 11,647,635
$
-
$
$
228,270 45 152,847
11
450 25,920 -
218,505
Permanent Fund
-
$
9,155,888
582,012 102,583 28,210 32,374
17,854
1,280
26,370
199,101
-
-
745,179
-
-
-
-
1,184,523
3,029 -
-
-
-
188,270 -
-
-
3,029 188,270 1,184,523
-
-
-
-
1,184,523
3,029
-
-
-
188,270
-
-
1,375,822
1,155
41,627
1,227,733
239,994
17,854
1,280
26,370
387,371
-
-
2,121,001
-
-
-
-
-
-
-
-
152,847
-
-
152,847
10,891 -
-
36,468 -
92,583 -
4,300 -
864,299 -
-
73,824 -
47,849 -
7,405 -
176,988
629
3,481,221 470,494 3,951,715 $ 4,128,703
$
1,957,505
-
60,773 656,066
-
-
-
12,805 -
56,668 1,529,036
-
11,600 -
-
10,891
716,839
36,468
92,583
4,300
877,104
1,585,704
73,824
212,296
7,405
1,957,505
9,526,634
78,095
$ 1,320,316
894,958
$ 1,586,984
$ 100,194
7,405
$ 1,957,505
$ 11,647,635
11,520
$
717,994
$
$
5-2
244,294
$
$
599,667
$
-
3,481,221 10,891 36,468 864,299 92,583 4,300 47,849 73,824 7,405 1,957,505 612,340 2,185,102
City of Midland, Michigan
Receiving and fi... - 92 of 189
Other Supplemental Information Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended June 30, 2015
Debt Service Fund
Special Revenue Funds
Local Street Fund Revenues Taxes Licenses and permits Federal grants Other state grants Local contributions Charges for services Interest income Other revenue
$
Total revenues Expenditures Current Public safety Public works Community and economic development Library and community television Airport Transportation Capital outlay Debt service Principal retirement Interest and fiscal charges
69,561 1,144,242 204,755 4,024 891
$
Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Sale of capital assets Transfers in Transfers out Total other financing sources and uses
Grace A. Dow Memorial Library Fund
$
$
16,397 612 370
2,388,291 45,178 49,427 619,666 1,237 16,821
Community Development Block Grant Fund $
287,513 23,575
Dial-A-Ride Fund $
935,563 762,455 108,074 26 361
Downtown Development Authority Fund $
488,949 11,392 34,428 886 9,789
Midland Community Television Fund $
364 775,680 1,408 -
Special Activities Fund $
8,983 76,343 70 1,712
Midland Housing Fund $
$ 678,313 7,989 805 687,107
17,379
3,120,620
311,088
1,806,479
545,444
777,452
87,108
25,724
1,136,657 1,943,349
35,047 -
542,531 109,191
3,654,016 225,389
248,433 -
1,822,045 214,986
448,811 -
531,628 31,506
8,869 100,401 20,247 -
274,424 -
-
-
-
-
651,722
(1,656,533)
(19,619)
(634,343)
(758,785)
62,655
1,921,000 (105,894)
-
880,838 -
536,997 -
1,815,106
-
880,838
536,997
(19,619)
246,495
(221,788)
(10,338)
299,929
46,633
214,342
30,510
470,344
258,256
102,921
(295,629)
830,471
1,371,362
877,104
$ 1,585,704
Fund balance - beginning of year
3,951,715
$
10,891
$
716,839
$
36,468
$
-
$
22,515 2,155 -
$
3,569,744 85,958 1,223,076 1,980,239 388,832 1,503,420 11,479 79,224
24,670
8,841,972
-
8,869 1,714,235 1,072,069 4,185,644 20,247 1,822,045 2,524,421
1,130,000 501,793
-
1,130,000 501,793
1,631,793
-
12,979,323
-
-
Cemetery Fund
Total Nonmajor Governmental Funds
448,811
563,134
129,517
274,424
(230,552)
96,633
214,318
(42,409)
(248,700)
(944,686)
24,670
(4,137,351)
(72,993)
530,481 -
(50,000)
24 -
7,494 (2,309)
274,409 -
1,817,784 (865,693)
(2,494)
274,433 5,694,594 (1,099,383)
(72,993)
530,481
(50,000)
24
5,185
274,409
952,091
(2,494)
4,869,644
92,583
5-3
2,037,031
-
35,047
158,573
248,433
-
3,080,006
3,793,142
3,879,405
-
Debt Service Fund
234 25,490
15,428
Net change in fund balance
$
14,191 1,000 22 215
Stormwater Management Fund
1,423,473
-
Total expenditures
Fund balance - end of year
Center City Authority Fund
Permanent Fund
$
4,300
$
$
(37,224)
25,709
7,405
111,048
186,587
-
73,824
$ 212,296
$
7,405
22,176
732,293
1,935,329
8,794,341
$ 1,957,505
$
9,526,634
Receiving and fi... - 93 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Local Street Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Licenses and permits Other State grants Local contributions Interest income Other revenue
$
70,000 767,000 50,000 2,500 889,500
Total revenues Expenditures Public works Engineering Right of way inspections Roadway maintenance Guardrail maintenance Sweeping and flushing Shoulder maintenance Roadside drainage Curb and gutter maintenance Roadside cleanup Dust control Snow and ice control Stormwater activities credit Traffic services Reserve for contingencies
103,800 18,501 273,552 3,938 216,223 7,826 164,598 184,752 12,157 19,314 463,137 (164,598) 105,509 20,000
Total expenditures Capital outlay Total public works Excess (deficiency) of revenues over (under) expenditures
5-4
$
70,000 1,099,918 250,000 2,500 1,422,418
108,742 18,501 272,758 1,938 226,543 3,826 161,259 184,662 14,793 12,558 374,912 (165,259) 132,500 20,000
Actual $
69,561 1,144,242 204,755 4,024 891 1,423,473
119,991 7,013 202,335 35 229,332 710 105,894 184,743 15,240 4,542 265,914 (105,895) 106,803 -
Variance with Final Budget $
(439) 44,324 (45,245) 1,524 891 1,055
11,249 (11,488) (70,423) (1,903) 2,789 (3,116) (55,365) 81 447 (8,016) (108,998) 59,364 (25,697) (20,000)
1,428,709
1,367,733
1,136,657
(231,076)
1,643,000
3,286,210
1,943,349
(1,342,861)
3,071,709
4,653,943
3,080,006
(1,573,937)
(2,182,209)
(3,231,525)
(1,656,533)
1,574,992
Receiving and fi... - 94 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Local Street Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Other financing sources (uses) Transfers in Transfers out
$
Total other financing sources (uses) Net change in fund balance
1,921,000 $ (164,598)
1,921,000 $ (165,259)
1,921,000 $ (105,894)
59,365
1,756,402
1,755,741
1,815,106
59,365
158,573
1,634,357
(425,807)
(1,475,784)
3,793,142
Fund balance - beginning of year $
Fund balance - end of year
5-5
Actual
Variance with Final Budget
3,367,335
3,793,142 $
2,317,358
3,793,142 $
3,951,715
$
1,634,357
Receiving and fi... - 95 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Center City Authority Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Taxes Local contributions Interest income Other revenue
$
Total revenues Expenditures Public works Supplies Other Total expenditures Net change in fund balance
8,890 14 -
$
$
5-6
14,191 1,000 22 215
$
3,191 8 (285)
12,514
15,428
2,914
8,900
30,342 9,200
30,341 4,706
(1) (4,494)
8,900
39,542
35,047
(4,495)
(27,028)
(19,619)
7,409
30,510
30,510
-
30,510
Fund balance - end of year
$
8,904
4
Fund balance - beginning of year
11,000 1,000 14 500
Actual
Variance with Final Budget
30,514
$
3,482
$
10,891
$
7,409
Receiving and fi... - 96 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Stormwater Management Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Licenses and permits Interest income Other revenue
$
Total revenues Expenditures Public works Administration Open drain maintenance Storm sewer maintenance Inspection expenses Storm sewer repair Purchased services Reserve for contingencies Total public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Net change in fund balance Fund balance - beginning of year $
Fund balance - end of year
5-7
17,300 450 250
$
18,350 433 550
Actual $
16,397 612 370
Variance with Final Budget $
(1,953) 179 (180)
18,000
19,333
17,379
(1,954)
19,602 35,374 209,330 44,821 42,093 287,073 20,000
19,602 38,660 210,366 45,154 40,166 306,849 17,180
19,602 41,044 145,634 36,980 34,253 265,018 -
2,384 (64,732) (8,174) (5,913) (41,831) (17,180)
658,293
677,977
542,531
(135,446)
200,000
408,233
109,191
(299,042)
858,293
1,086,210
651,722
(434,488)
(840,293)
(1,066,877)
(634,343)
432,534
904,073
921,050
880,838
(40,212)
63,780
(145,827)
246,495
392,322
470,344
470,344
470,344
534,124
$
324,517
$
716,839
$
392,322
Receiving and fi... - 97 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Grace A. Dow Memorial Library Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Taxes Other State grants Local contributions Charges for services Interest income Other revenue
$
Total revenues Expenditures Library and community television Personal services Supplies Other changes Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in
2,233,120 45,200 51,300 594,154 2,000 2,700
$
$
5-8
2,388,291 45,178 49,427 619,666 1,237 16,821
$
(614) (22) (6,714) 1,821 437 (378)
3,120,620
(5,470)
2,723,575 491,360 736,390 -
2,722,985 529,410 682,798 245,455
2,561,449 516,397 576,170 225,389
(161,536) (13,013) (106,628) (20,066)
3,951,325
4,180,648
3,879,405
(301,243)
(1,022,851)
(1,054,558)
258,256
Fund balance - end of year
$
3,126,090
-
Fund balance - beginning of year
2,388,905 45,200 56,141 617,845 800 17,199
2,928,474
1,022,851
Net change in fund balance
Actual
Variance with Final Budget
258,256
$
(758,785)
295,773
796,302
536,997
(259,305)
(258,256)
(221,788)
36,468
258,256
258,256
-
-
$
36,468
$
36,468
Receiving and fi... - 98 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Community Development Block Grant Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Federal grants Other revenue
$
319,178 45,000
$
513,680 45,000
Actual $
287,513 23,575
Variance with Final Budget $
(226,167) (21,425)
364,178
558,680
311,088
(247,592)
43,000 87,292 101,382 30,497 25,000 7,000 10,000
43,000 105,327 176,383 30,497 25,000 7,000 2,000
38,309 47,327 126,555 30,497 5,745 -
(4,691) (58,000) (49,828) (25,000) (1,255) (2,000)
304,171
389,207
248,433
(140,774)
60,007
169,473
62,655
(106,818)
(25,184)
(89,233)
(72,993)
16,240
(25,184)
(89,233)
(72,993)
16,240
Net change in fund balance
34,823
80,240
(10,338)
(90,578)
Fund balance - beginning of year
102,921
102,921
102,921
-
Total revenues Expenditures Community and economic development Administration Residential home rehabs Public facilities improvements Public services project Affordable housing Removal of architectural barriers Reserve for contingencies Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers out Total other financing sources and uses
$
Fund balance - end of year
5-9
137,744
$
183,161
$
92,583
$
(90,578)
Receiving and fi... - 99 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Dial-A-Ride Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Federal grants Other State grants Charges for services Interest income Other revenue
$
1,000,119 796,078 118,000 -
$
Actual
1,287,644 836,761 101,000 -
$
935,563 762,455 108,074 26 361
Variance with Final Budget $
(352,081) (74,306) 7,074 26 361
1,914,197
2,225,405
1,806,479
(418,926)
Expenditures Transportation Operations Administration Dispatching Reserve for contingencies
1,405,417 180,994 268,606 10,000
1,427,408 199,293 244,623 10,000
1,380,467 206,502 235,076 -
(46,941) 7,209 (9,547) (10,000)
Total transportation
1,865,017
1,881,324
1,822,045
(59,279)
751,000
673,573
214,986
(458,587)
2,616,017
2,554,897
2,037,031
(517,866)
Total revenues
Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Net change in fund balance
(701,820)
(329,492)
(230,552)
98,940
701,820
625,121
530,481
(94,640)
295,629
299,929
4,300
(295,629)
(295,629)
-
(295,629)
Fund balance - beginning of year $
Fund balance - end of year
5 - 10
(295,629) $
-
$
4,300
$
4,300
Receiving and fi... - 100 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Downtown Development Authority Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Taxes Other state grants Local contributions Interest income Other revenue
$
478,625 16,500 1,000 8,000
$
504,009 34,428 1,000 10,000
Actual $
488,949 11,392 34,428 886 9,789
Variance with Final Budget $
(15,060) 11,392 (114) (211)
504,125
549,437
545,444
(3,993)
190,037 1,900 253,372
193,037 1,975 299,436
174,854 1,601 272,356
(18,183) (374) (27,080)
445,309
494,448
448,811
(45,637)
58,816
54,989
96,633
41,644
Other financing sources (uses) Transfers out
(45,000)
(50,000)
(50,000)
Net change in fund balance
13,816
4,989
46,633
41,644
Fund balance - beginning of year
830,471
830,471
830,471
-
Total revenues Expenditures Community and economic development Personal services Supplies Other changes Total expenditures Excess (deficiency) of revenues over (under) expenditures
$
Fund balance - end of year
5 - 11
844,287
$
835,460
$
877,104
$
41,644
Receiving and fi... - 101 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Midland Community Television Fund For the Year Ended June 30, 2015 Budgeted Amounts Original Final
Revenues Local contributions Charges for services Interest income
$
Total revenues Expenditures Library and community television Personal services Supplies Other changes Reserve for contingencies Total library and community television Capital outlay Total expenditures
2,500 699,800 1,100
$
Other Financing Sources (Uses) Proceeds from sale of capital assets
$
5 - 12
364 775,680 1,408
$
(1,636) 20,380 308 19,052
390,352 97,350 148,754 20,000
389,005 24,548 148,900 20,000
381,010 20,339 130,279 -
(7,995) (4,209) (18,621) (20,000)
656,456
582,453
531,628
(50,825)
359,000
473,376
31,506
(441,870)
1,015,456
1,055,829
563,134
(492,695)
214,318
511,747
(297,429) 25
1,059,306
24
(297,404)
1,371,362
Fund balance - end of year
$
777,452
(312,056)
Fund balance - beginning of year
2,000 755,300 1,100 758,400
-
Net change in fund balance
Actual
703,400
(312,056)
Excess (deficiency) of revenues over (under) expenditures
Variance with Final Budget
214,342
1,371,362 $
1,073,958
(1) 511,746
1,371,362 $
1,585,704
$
511,746
Receiving and fi... - 102 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Special Activities Fund For the Year Ended June 30, 2015
Budgeted Amounts Original Final Revenues Other state grants Local contributions Interest income Other revenue
$
9,000 115,150 50 5,000
$
9,000 79,150 50 5,000
Actual $
8,983 76,343 70 1,712
Variance with Final Budget $
(17) (2,807) 20 (3,288)
Total revenues
129,200
93,200
87,108
(6,092)
Expenditures General government Supplies Other changes
105,000 9,000
5,490 129,757
5,240 124,277
(250) (5,480)
114,000
135,247
129,517
(5,730)
15,200
(42,047)
(42,409)
(362)
(15,000)
7,495 (15,000)
7,494 (2,309)
(1) 12,691
(49,552)
(37,224)
12,328
111,048
111,048
-
Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers out Net change in fund balance
200 111,048
Fund balance - beginning of year $
Fund balance - end of year
5 - 13
111,248
$
61,496
$
73,824
$
12,328
Receiving and fi... - 103 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Midland Housing Fund For the Year Ended June 30, 2015
Budgeted Amounts Original Final Revenues Interest income Other revenue
$
200 -
$
Actual 200 160
$
234 25,490
Variance with Final Budget $
34 25,330
200
360
25,724
25,364
245,000 11,800
274,466 6,800
274,409 15
(57) (6,785)
256,800
281,266
274,424
(6,842)
(256,600)
(280,906)
(248,700)
32,206
Other financing sources (uses) Sale of capital assets
245,000
274,466
274,409
Net change in fund balance
(11,600)
Fund balance - beginning of year
186,587
Total revenues Expenditures Community and economic development Costs of assets sold Warranty maintenance Total expenditures Excess (deficiency) of revenues over (under) expenditures
$
Fund balance - end of year
5 - 14
174,987
(6,440) 186,587 $
180,147
$
(57)
25,709
32,149
186,587
-
212,296
$
32,149
Receiving and fi... - 104 of 189
City of Midland, Michigan Other Supplementary Information Budgetary Comparison Schedule Debt Service Fund For the Year Ended June 30, 2015
Budgeted Amounts Original Final Revenues Taxes Other state grants Interest income
$
Total revenues Expenditures Debt service Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses)
678,951 -
$
Variance with Final Budget
Actual
678,523 250
$
678,313 7,989 805
$
(210) 7,989 555
678,951
678,773
687,107
8,334
1,130,000 500,864
1,130,000 500,864
1,130,000 501,793
929
1,630,864
1,630,864
1,631,793
929
(951,913)
(952,091)
(944,686)
7,405
1,820,824 (868,911)
1,817,784 (865,693)
1,817,784 (865,693)
-
951,913
952,091
952,091
-
Net change in fund balance
-
-
7,405
7,405
Fund balance - beginning of year
-
-
-
-
$
Fund balance - end of year
5 - 15
-
$
-
$
7,405
$
7,405
Receiving and fi... - 105 of 189
City of Midland, Michigan Other Supplementary Information Nonmajor Proprietary Funds Fund Descriptions Year Ended June 30, 2015
Enterprise Funds Enterprise Funds are used to account for operations financed and operated in a manner similar to private business or where the governing body has decided that the determination of revenues earned, costs incurred, and/or net income is necessary for management accountability. Washington Woods Fund – This fund accounts for the operation and maintenance of one of the City’s senior housing rental properties. Riverside Place Fund – This fund accounts for the operation and maintenance of one of the City’s senior housing rental properties. Real Estate Rental Fund – This fund accounts for the operation and maintenance of the City’s miscellaneous rental properties. Currie Municipal Golf Course Fund – This fund accounts for the operation and maintenance of the City’s golf course. Parking Fund – This fund accounts for the operations of the City’s metered and leased parking spaces and downtown parking structure.
5 - 16
Receiving and fi... - 106 of 189
City of Midland, Michigan Other Supplementary Information Nonmajor Proprietary Funds Combining Statement of Net Position June 30, 2015 Enterprise Funds Washington Woods Fund
Assets Current assets Cash and cash equivalents Investments Receivables - net of allowances for uncollectibles: Customers Accounts and contracts Accrued interest Inventories Prepaid items
$
1,879,382 -
Riverside Place Fund $
1,259,678 -
Currie Municipal Golf Course Fund $
397,591
Parking Fund $
9,903 -
Total Nonmajor Proprietary Funds $
3,148,963 397,591
4,623 339 -
431 273 -
9,801 40,000 28,193 27,924
16,025 -
14,855 56,025 612 28,193 27,924
1,884,344
1,260,382
503,509
25,928
3,674,163
3,321,853 13,765
7,060,057 538,000
4,756,820 288,354
1,022,364 536,223
16,161,094 1,376,342
Total noncurrent assets
3,335,618
7,598,057
5,045,174
1,558,587
17,537,436
Total assets
5,219,962
8,858,439
5,548,683
1,584,515
21,211,599
79,813
75,119
2,348
157,280
5,299,775
8,933,558
1,586,863
21,368,879
Total current assets Noncurrent assets Capital assets, net of accumulated depreciation Capital assets not being depreciated
Deferred outflows of resources Deferred amount of pension expense related to net pension liability Total assets and deferred outflows of resources
5 - 17
5,548,683
Receiving and fi... - 107 of 189
City of Midland, Michigan Other Supplementary Information Nonmajor Proprietary Funds Combining Statement of Net Position June 30, 2015 Enterprise Funds Washington Woods Fund
Liabilities Current liabilities Accounts payable Accrued and other liabilities Deposits Unearned revenue
$
90,211 24,650 400,000
Riverside Place Fund $
36,734 22,175 -
Currie Municipal Golf Course Fund $
1,064,972 44,186 64,337 17,547
514,861
58,909
1,130,575 49,902 1,388
1,064,071 31,720 26,639
Total noncurrent liabilities
1,181,865
1,122,430
Total liabilities
1,696,726
1,181,339
1,191,042
3,335,618 267,431
7,598,057 154,162
5,045,174 (687,533)
Total current liabilities Noncurrent liabilities Net pension liability Current portion of noncurrent liabilities Long-term debt net of current portion
Net position Net investment in capital assets Unrestricted (deficit) Total net position
$
3,603,049
5 - 18
$
7,752,219
$
1,191,042
$
Total Nonmajor Proprietary Funds
Parking Fund 437 -
$
1,192,354 44,186 111,162 417,547
437
1,765,249
-
33,253 -
2,227,899 81,622 28,027
-
33,253
2,337,548
33,690
4,102,797
4,357,641
1,558,587 (5,414) $
1,553,173
17,537,436 (271,354) $
17,266,082
City of Midland, Michigan
Receiving and fi... - 108 of 189
Other Supplementary Information Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2015 Enterprise Funds Washington Woods Fund Operating revenue Use and admission charges Rental income Sale of meals - revenue Other revenue Total operating revenue Operating expenses Operations Maintenance Other expenses Depreciation Total operating expenses Operating loss Nonoperating revenue (expenses) Interest income Loss on disposition of assets Total nonoperating revenues (expenses) Loss before contributions and transfers
$
1,273,007 228,133 171,965
Riverside Place Fund $
1,403,511 376,614 152,291
Currie Municipal Golf Course Fund $
800,025 15,107
Parking Fund $
94,534 12,042
Total Nonmajor Proprietary Funds $
894,559 2,676,518 604,747 351,405
1,673,105
1,932,416
815,132
106,576
4,527,229
1,706,582 188,943
1,830,182 273,028
1,030,975 180,207
41,340 114,754 999 36,880
4,609,079 114,754 999 679,058
1,895,525
2,103,210
1,211,182
193,973
5,403,890
(222,420)
(170,794)
(396,050)
(87,397)
(876,661)
1,733 -
1,534 (6,855)
8,502 -
-
11,769 (6,855)
1,733
(5,321)
8,502
-
4,914
(220,687)
5 - 19
(176,115)
(387,548)
(87,397)
(871,747)
City of Midland, Michigan
Receiving and fi... - 109 of 189
Other Supplementary Information Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2015 Enterprise Funds Washington Woods Fund Capital contributions Transfers in Transfers out
$
Change in net position
$
(137,694)
$
3,603,049
5 - 20
Currie Municipal Golf Course Fund
15,284 $ (10,000) (170,831)
3,740,743
Net position - beginning of year, as restated Net position - end of year
82,993 -
Riverside Place Fund
242,252
7,923,050 $
7,752,219
89,800 540,000 -
$
Parking Fund $
63,000 -
Total Nonmajor Proprietary Funds $
(24,397)
4,115,389
1,577,570
4,357,641
$ 1,553,173
105,084 685,993 (10,000) (90,670) 17,356,752
$
17,266,082
Receiving and fi... - 110 of 189
City of Midland, Michigan Other Supplementary Information Nonmajor Proprietary Funds Combining Statement of Cash Flows For the Year Ended June 30, 2015 Enterprise Funds Washington Woods Fund
Cash flows from operating activities Receipts from customers Payments to suppliers Payments to employees
$
Net cash provided (used) by operating activities Cash flows from noncapital financing activities Transfer from other funds Transfers to other funds Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities Capital contributions Purchases/construction of capital assets Net cash used by capital and related financing activities Cash flows from investing activities Interest received
Riverside Place Fund
1,671,264 $ (532,420) (688,000)
107,079 $ (117,674) (42,502)
4,492,773 (2,764,807) (1,938,315)
(53,097)
(210,349)
82,993 -
(10,000)
540,000 -
63,000 -
685,993 (10,000)
82,993
(10,000)
540,000
63,000
675,993
(224,403)
15,284 (188,522)
89,800 (247,529)
-
105,084 (660,454)
(224,403)
(173,238)
(157,729)
-
(555,370)
1,534
10,755
-
14,022
(78,790)
(317,984)
9,903
317,984
-
311,167
Cash and cash equivalents - beginning of year
1,879,382
1,338,468
Cash and cash equivalents - end of year
$
Noncash investing activities - changes in fair value of investments
$
-
$
(222,420) $
5 - 21
782,381 $ (961,328) (532,063) (711,010)
1,568,215
$
Parking Fund
102,914
Net change in cash and cash equivalents
Net cash provided (used) by operating activities
1,932,049 $ (1,153,385) (675,750)
Total Nonmajor Proprietary Funds
450,844
1,733
Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating loss Adjustments to reconcile operating loss to net cash from operating activities Depreciation expense Noncash portion of deferred outflows related to net pension liability Changes in assets and liabilities Receivables (net) Inventories Prepaid items Deferred amount of pension expense related to net pension liability Accounts payable Accrued and other liabilities Deposits Unearned revenue
Currie Municipal Golf Course Fund
$ $
1,259,678 -
$
-
$
$
(2,253) $
(170,794) $
(396,050) $
(75,704) 3,224,667
9,903
$
3,148,963
-
$
(2,253)
(87,397) $
(876,661)
188,943 40,279
273,028 37,910
180,207 -
36,880 1,184
679,058 79,373
(1,841) (26,734) 80,767 (5,575) (2,575) 400,000
(367) (25,163) (13,039) 3,289 (1,950) -
(32,751) 11,695 (19,080) (471,644) 6,076 4,568 5,969
503 (787) (3,480) -
(34,456) 11,695 (19,080) (52,684) (407,396) 3,790 43 405,969
450,844
$
102,914
$
(711,010) $
(53,097) $
(210,349)
Receiving and fi... - 111 of 189
City of Midland, Michigan Other Supplementary Information Fiduciary Funds Fund Descriptions Year Ended June 30, 2015
Trust Fund Trust Funds are used to account for assets held by the City in a trustee capacity. Police and Fire Pension Fund – This fund accounts for the accumulation of resources for, and the payment of, pension benefits. Agency Funds Agency Funds are used to account for assets held by the City as an agent for individuals, organizations, or other governments. Payroll Fund – This fund is used to account for all benefits charged and all deductions withheld during payroll processing until payments are remitted. Midland Downtown Business Association Fund – The City acts as an agent for the financial management of this Association. This fund accounts for special assessments charged against property owners within the Shopping Area Redevelopment Authority district for promotion of the area. DDA Façade Improvement Fund – This fund accounts for loans to businesses in the Downtown Development Authority business district. The funding for these loans was provided by a grant from the Rollin M. Gerstacker Foundation. Tax Collection Fund – This fund is used to account for taxes collected on behalf of other governmental units. Center City Façade Improvements Fund – This fund accounts for loans to commercial property owners and business owners in the Center City corridor for qualifying façade improvements. The funding for these loans was provided by a grant from the Midland Area Community Foundation.
5 – 22
City of Midland, Michigan
Receiving and fi... - 112 of 189
Other Supplementary Information Fiduciary Funds - Pension and Other Employee Benefit Trust Funds Statement of Plan Net Position June 30, 2015
Police and Fire Pension Assets Cash and cash equivalents Investments Common stock Preferred stock Bonds International funds Alternative investments Receivables Accrued interest
$
2,021,639 28,978,755 1,628,206 12,374,164 9,531,273 6,322,710 53,593 60,910,340
Total assets
Net position $
Net position restricted for pensions
5 - 23
60,910,340
City of Midland, Michigan
Receiving and fi... - 113 of 189
Other Supplementary Information Fiduciary Funds - Pension and Other Employee Benefit Trust Funds Statement of Changes in Plan Net Position For the Year Ended June 30, 2015 Police and Fire Pension Additions Contributions Employer Plan members
$
2,466,484 562,157 3,028,641
Total contributions Investment earnings Net gain in fair value of assets Interest Dividends
1,980,866 362,495 680,750
Total investment earnings
3,024,111 (428,549)
Less investment expense Net investment earnings
2,595,562 18,046
Other revenue
5,642,249
Total contributions and additions Deductions Benefits paid, including refunds of member contributions
5,637,423 4,826
Change in net position
60,905,514
Net positions restricted from pensions - beginning of year Net positions restricted for pensions - end of year
$
5 - 24
60,910,340
Receiving and fi... - 114 of 189
City of Midland, Michigan Other Supplementary Information Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2015 Balance July 1, 2014
Additions
Balance June 30, 2015
Deletions
Payroll Fund Assets Cash and cash equivalents Prepaids Total assets Liabilities Accrued payroll liabilities
$
1,695,764 95,277
$
42,965,426 88,443
$
42,877,138 95,277
$
1,784,052 88,443
$
1,791,041
$
43,053,869
$
42,972,415
$
1,872,495
$
1,791,041
$
44,502,365
$
44,420,911
$
1,872,495
$
7,964
$
94,818
$
82,732
$
20,050
Midland Downtown Business Association Fund Assets Cash and cash equivalents Receivables Accounts and contracts Accrued interest and other
-
Total assets Liabilities Accounts payable Due to other units of government Total liabilities
6,414 12
3
-
6,414 3
12
$
7,967
$
101,244
$
82,744
$
26,467
$
7,967
$
65,087 26,467
$
65,087 7,967
$
26,467
$
7,967
$
91,554
$
73,054
$
26,467
$
50,819
$
715
$
35,313
$
16,221
DDA Facade Improvement Fund Assets Cash and cash equivalents Receivables Accounts and contracts Accrued interest and other
4,571 12
19,999 31
653 38
23,917 5
$
55,402
$
20,745
$
36,004
$
40,143
Liabilities Accounts payable Due to foundations
$
55,402
$
35,299 40,143
$
35,299 55,402
$
40,143
Total liabilities
$
55,402
$
75,442
$
90,701
$
40,143
Total assets
5 - 25
Receiving and fi... - 115 of 189
City of Midland, Michigan Other Supplementary Information Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2015 Balance July 1, 2014
Additions
Balance June 30, 2015
Deletions
Tax Collection Fund Assets Cash and cash equivalents Receivables Accounts and contracts
$
177,816
$
-
Total assets Liabilities Due to other units of government
92,676,908
$
1,029,362
92,629,768
$
520,281
224,956 509,081
$
177,816
$
93,706,270
$
93,150,049
$
734,037
$
177,816
$
158,407,669
$
157,851,448
$
734,037
$
150,115
$
20
$
150,095
Center City Façade Improvements Fund Assets Cash and cash equivalents Receivables Accounts and contracts Accrued interest and other
$
-
Total assets Liabilities Due to foundations
10,000 85
-
$
-
$
160,200
$
$
-
$
160,125
$
10,000 30
55 75
-
$
160,125
$
160,125
Total All Agency Funds Assets Cash and cash equivalents Accounts and contracts Accrued interest and other Prepaids Total assets Liabilities Accounts payable Accrued payroll liabilities Due to foundations Due to other units of government Total liabilities
5 - 26
$
1,932,363 4,571 15 95,277
$
135,887,982 1,065,775 128 88,443
$
135,624,971 520,934 105 95,277
$
2,195,374 549,412 38 88,443
$
2,032,226
$
137,042,328
$
136,241,287
$
2,833,267
$
1,791,041 55,402 185,783
$
100,386 44,502,365 200,268 158,434,136
$
100,386 44,420,911 55,402 157,859,415
$
1,872,495 200,268 760,504
$
2,032,226
$
203,237,155
$
202,436,114
$
2,833,267
Receiving and fi... - 116 of 189
City of Midland, Michigan Other Supplementary Information Internal Service Funds Fund Descriptions Year Ended June 30, 2015
Internal Service Funds Internal Service Funds are used to account for operations that provide services to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. Information Services Fund – This fund accounts for the operations of the City’s Information Services Department. Store Revolving Fund – This fund accounts for the revenue and expenses associated with inventory items consumed by various departments and note specific to any one department. Equipment Revolving Fund – This fund accounts for the rental charges of City-owned equipment to other City departments. Municipal Service Center Fund – This fund accounts for the operations of the City’s Municipal Service Center building. Renewable Energy Services Fund – This fund accounts for the activities related to the City’s gas-to-energy project. Property and Liability Insurance Fund – This fund accounts for insurance expenses resulting from property and liability claims. Health Insurance Fund – This fund accounts for revenues and expenses of the City’s self-insurance program for health insurance along with the contributions toward postemployment healthcare benefits. Special Assessment Revolving Fund – This fund accounts for the funding of the City’s special assessment projects. Municipal Service Annex Fund – This fund accounts for the operations of the City’s Municipal Service Annex building.
5 – 27
City of Midland, Michigan
Receiving and fi... - 117 of 189
Other Supplementary Information Internal Service Funds Combining Statement of Net Position June 30, 2015
Information Services Fund Assets Current assets Cash and cash equivalents Receivables - net of allowances for uncollectibles: Customers Special assessments, current Accounts and contracts Accrued interest Inventories Prepaid items Total current assets Noncurrent assets Special assessments receivable Capital assets not being depreciated Capital assets, net of accumulated depreciation Total noncurrent assets Total assets Deferred outflows of resources Deferred amount of pension expense related to net pension liability Total assets and deferred outflows of resources Liabilities Current liabilities Accounts payable Due to other funds Accrued interest Estimated healthcare claims Total current liabilities
$
2,363,694
Store Revolving Fund
$
Municipal Service Center Fund
Equipment Revolving Fund
$
758,716
Renewable Energy Services Fund
$
711,981
Property and Liability Insurance Fund
$
1,240,397
Special Assessment Revolving Fund
Health Insurance Fund
$
5,218,044
$
1,297,477
Municipal Service Annex Fund
$
75,173
Total
91,699
$ 2,837,535
$
14,594,716
722 471 -
15 440,730 -
34,720 545 393,955 -
150 -
262,662 141 -
917,988 4,828
28,415 1,003 660,742
58,121 267,684 350 -
15 -
262,662 58,121 1,249,529 2,690 834,685 665,570
2,364,887
532,444
3,266,755
758,866
974,784
2,163,213
5,908,204
1,623,632
75,188
17,667,973
66,411
-
6,343,449
55,000 1,511,908
8,079,419
-
-
366,725 -
272,156
366,725 55,000 16,273,343
66,411
-
6,343,449
1,566,908
8,079,419
-
-
366,725
272,156
16,695,068
9,610,204
2,325,774
9,054,203
1,990,357
347,344
34,363,041
177,625
2,348
23,475
2,431,298
102,897
532,444
-
2,163,213
-
5,908,204
-
2,534,195
532,444
9,787,829
2,328,122
9,077,678
2,163,213
5,908,204
3,583 -
33,547 -
193,383 -
12,939 -
26,754 21,153 31,406 -
25,000 -
327,049 406,102
3,583
33,547
193,383
12,939
79,313
25,000
733,151
5 - 28
1,990,357
-
306,345
347,344
34,669,386
-
104 -
622,359 21,153 31,406 406,102
-
104
1,081,020
City of Midland, Michigan
Receiving and fi... - 118 of 189
Other Supplementary Information Internal Service Funds Combining Statement of Net Position June 30, 2015
Information Services Fund Noncurrent liabilities Net pension liability Current portion of noncurrent liabilities Advances from other funds Long-term debt net of current portion
$
1,457,555 45,804 91,776
Store Revolving Fund $
Municipal Service Center Fund
Equipment Revolving Fund
-
$ 2,516,085 61,964 26,552
$
33,253 -
Renewable Energy Services Fund $
332,523 260,000 330,284 4,765,000
Property and Liability Insurance Fund $
-
$
-
Total noncurrent liabilities
1,595,135
-
2,604,601
33,253
5,687,807
-
Total liabilities
1,598,718
33,547
2,797,984
46,192
5,767,120
25,000
733,151
66,411 869,066
498,897
6,343,449 646,396
1,566,908 715,022
3,054,419 256,139
2,138,213
5,175,053
498,897
$ 6,989,845
Net position Net investment in capital assets Unrestricted Total net position
$
935,477
$
$
2,281,930
5 - 29
$
3,310,558
$
2,138,213
Special Assessment Revolving Fund
Health Insurance Fund $
-
$
5,175,053
-
Municipal Service Annex Fund $
$
4,339,416 367,768 330,284 4,883,328
-
-
-
104
11,001,816
272,156 75,084
11,303,343 12,364,227
1,990,357 $
-
Total
1,990,357
$
347,240
9,920,796
$
23,667,570
City of Midland, Michigan
Receiving and fi... - 119 of 189
Other Supplementary Information Internal Service Funds Combining Statement of Revenues, Expenses, and Change in Net Position For the Year Ended June 30, 2015
Information Services Fund Operating revenue Billings to other funds Rental income Other revenue
$
Total operating revenue Operating expenses Operations Depreciation Total operating expenses
1,334,972 -
Store Revolving Fund $
Municipal Service Center Fund
Equipment Revolving Fund
934,947
$
3,762,280 306,637
$
362,516 564
Renewable Energy Services Fund $
1,031,705 -
Property and Liability Insurance Fund $
516,313 2,173,417
$
8,498,228 508,888
1,334,972
934,947
4,068,917
363,080
1,031,705
2,689,730
9,007,116
1,111,063 226,438
873,265 -
2,742,084 1,238,657
253,267 101,296
709,374 653,699
1,982,507 -
8,461,381 -
1,337,501
873,265
3,980,741
354,563
1,363,073
1,982,507
8,461,381
707,223
545,735
$
371,942
Municipal Service Annex Fund $
371,942
Total
34,744 -
$
11,381,218 4,159,540 4,296,395
34,744
19,837,153
-
17,332 6,185
16,150,273 2,226,275
-
23,517
18,376,548
371,942
11,227
1,460,605
Operating income (loss)
(2,529)
61,682
88,176
8,517
Nonoperating revenue (expenses) Interest income Gain on disposition of assets
2,497 56
-
2,797 159,396
966 -
682 -
-
5,457 -
14,190 -
75 -
26,664 159,452
2,553
-
162,193
966
682
-
5,457
14,190
75
186,116
61,682
250,369
9,483
(330,686)
551,192
386,132
11,302
1,646,721
-
184,693 -
-
100,000 -
(833,168)
-
24
61,682
435,062
9,483
(230,686)
(447,036)
11,302
1,098,246
935,453
437,215
6,554,783
2,272,447
335,938
22,569,324
Total nonoperating revenues (expenses) Income (loss) before contributions and transfers
24
Capital contributions Transfers in Transfers out
-
Change in net position Net position - beginning of year, as restated Net position - end of year
$
935,477
$
498,897
$
6,989,845
$
2,281,930
5 - 30
(331,368)
Special Assessment Revolving Fund
Health Insurance Fund
707,223 -
3,541,244 $
3,310,558
$
-
707,223
551,192
1,430,990
4,623,861
2,138,213
$
5,175,053
2,437,393 $
1,990,357
$
347,240
184,693 100,000 (833,168)
$
23,667,570
City of Midland, Michigan Other Supplementary Information Internal Service Funds Combining Statement of Cash Flows For the Year Ended June 30, 2015
Information Services Fund Cash flows from operating activities Receipts from customers Receipts from other funds Payments to suppliers Payments to employees
$
Store Revolving Fund
$ 1,335,110 (423,889) (672,809)
Cash flows from noncapital financing activities Transfer from other funds Transfers to other funds Advances to other funds
934,932 $ 4,075,076 $ (1,061,007) (1,294,593) (1,274,143) (126,075)
238,412
Net cash provided (used) by operating activities
Municipal Service Center Fund
Equipment Revolving Fund
1,506,340
Renewable Energy Services Fund
363,337 $ (501,984) (19,968) (158,615)
Property and Liability Insurance Fund
$ 954,946 (246,272) (697,527) 11,147
Special Assessment Revolving Fund
Health Insurance Fund
1,256,524 $ 480,861 $ 516,313 8,498,228 (1,981,908) (9,500,965) (209,071)
(521,876)
166,466 -
Municipal Service Annex Fund $
Total
34,743 $ 7,311,939 11,304,597 (16,614) (15,027,232) (700) (2,665,147)
166,466
17,429
924,157
-
-
-
-
100,000 (21,152)
-
-
(833,168) -
-
100,000 (833,168) (21,152)
-
-
-
-
78,848
-
-
(833,168)
-
(754,320)
Cash flows from capital and related financing activities Capital contributions Purchases/construction of capital assets Proceeds from sale of capital assets
(25,200) 56
-
184,693 (1,717,797) 233,068
(753,182) -
(51,573) -
-
-
-
-
184,693 (2,547,752) 233,124
Net cash used by capital and related financing activities
(25,144)
-
(1,300,036)
(753,182)
(51,573)
-
-
-
-
(2,129,935)
2,497
-
-
5,457
14,190
Net cash provided (used) by noncapital financing activities
Cash flows from investing activities Interest received Net change in cash and cash equivalents
215,765
Cash and cash equivalents - end of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income to net cash from operating activities Depreciation and amortization expense Noncash portion of deferred outflows related to net pension liability Changes in assets and liabilities Receivables (net) Inventories Prepaid items Deferred amount of pension expense related to net pension liability Accounts payable Accrued and other liabilities Due to other funds Net cash provided (used) by operating activities
(126,075)
(910,831)
39,104
$
91,699
$ 2,837,535
$
758,716
$
(2,529) $
61,682
$
$
8,517
$
88,176
1,669,547
(209,071)
672,877 711,981
(516,419)
1,449,468
75
(652,512)
5,734,463
1,949,989
(1,933,434)
57,669
16,528,150
$
1,240,397
$
5,218,044
$
1,297,477
$
75,173
$ 14,594,716
(331,368) $
707,223
$
545,735
$
371,942
$
11,227
$
-
1,238,657
101,296
653,699
-
-
-
6,185
51,929
-
89,641
1,186
11,847
-
-
-
-
(34,467) (10,898) 7,801 238,412
$
(15) (100,090) -
6,159 (18,525) -
(87,652) -
(59,499) 154,828 6,903 -
(126,075) $ 1,506,340
257 (787) (269,084) $
(158,615) $
5 - 31
26,664
17,504
226,438
138 -
$
209,101
682
2,628,434
$ 2,363,694
$
966
217,774
2,147,929
Cash and cash equivalents - beginning of year
2,797
(76,865) -
(916,893) (4,828)
(7,864) 18,166 (256,574) 106 11,147
5,427 $
(209,071) $
(28,027) (525,378) 151,455 (665,661) (521,876) $
(205,476) -
166,466
2,226,275 154,603
(1)
(1,220,723) (118,615) (530,206)
-
-
-
(102,617) (37,740) (907,531) 106
18 $
1,460,605
17,429
$
924,157
Receiving and fi... - 121 of 189
City of Midland, Michigan
Statistical Section This is part of the Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplemental information says about the City’s overall financial health. The statistical section is organized into the following main categories:
Financial trends Revenue capacity Debt capacity Demographic and economic information Operating information
Sources – Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year.
6-1
Receiving and fi... - 122 of 189
City of Midland, Michigan
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.
6-2
City of Midland, Michigan Net Position by Component Last Eight Fiscal Years As of June 30, 2008 Governmental activities: Net investment in capital assets Restricted Unrestricted (deficit) Total net position Business-type activities: Net investment in capital assets Restricted Unrestricted Total net position Primary government in total: Net investment in capital assets Restricted Unrestricted (deficit) Total net position
2009
2010
2011
2012
$ 82,924,667 $ 83,247,933 $ 87,999,853 $ 87,613,288 $ 88,511,573 8,055,923 6,714,007 7,550,391 8,459,716 8,206,252 (2,534,773) (6,248,653) (3,785,796) 1,210,553 (2,379,204) (1) 87,427,167 89,301,591 92,287,208 97,928,378 88,601,386
93,462,299 1,244,000 24,509,727 119,216,026
93,907,450 25,000 26,937,227 120,869,677
98,022,672 25,000 29,793,084 127,840,756
100,609,436 25,000 31,156,750 131,791,186
100,402,758 3,263,589 29,981,732 133,648,079
176,386,966 9,299,923 22,130,523
177,155,383 6,739,007 24,402,454
186,022,525 7,575,391 23,544,431
188,222,724 8,484,716 27,370,954
188,914,331 11,469,841 31,192,285
$ 207,817,412
$ 208,296,844
$ 217,142,347
$ 224,078,394
$ 231,576,457
2013
(2)
(2)
(2)
$ 86,664,194 14,341,343 2,790,283 103,795,820
2014
$ 89,585,040 $ 93,387,248 12,864,614 12,887,661 (39,825,932) (3) (39,810,693) 62,623,722 66,464,216
100,885,163 3,397,088 31,710,327 135,992,578
101,563,419 3,455,307 17,167,995 122,186,721
187,549,357 17,738,431 34,500,610
191,148,459 16,319,921 (22,657,937) (3)
$ 239,788,398
$ 184,810,443
Source: City's Comprehensive Annual Financial Report (1) 2008 was restated to incorporate 2009 prior period adjustment to defer certain revenue in the Midland Housing Fund. (2) 2012 was restated to incorporate 2013 prior period adjustment for a change in accounting principle, due to the implementation of GASB Standards 63 and 65. (3) 2014 was restated to incorporate a prior-period adjustment for a change in accounring principle, due to the implementation of GASB Standard 68
6-3
2015
(3)
103,416,149 22,608,670 126,024,819
196,803,397 12,887,661 (17,202,023) $ 192,489,035
City of Midland, Michigan
Receiving and fi... - 124 of 189
Changes in Governmental Net Position Last Eight Years (Accrual basis of accounting) Fiscal Year Ended June 30, 2008
Expenses General government Public safety Public works Sanitation Community and economic development Parks and recreation Library and community television Airport Transportation Property tax appeals Interest on long-term debt Total governmental activities Program revenues: Charges for services General government Public safety Public works Sanitation Community and economic development Parks and recreation Library and community television Airport Transportation Other functions Total charges for services
$
3,758,824 13,376,090 9,247,222 2,500,382 955,057 3,092,978 4,363,845 324,607 1,697,903 20,819,386 3,025 60,139,319
839,576 806,321 529,868 177,697 28,672 202,302 722,556 242,062 146,384 38,920 3,734,358
2009 $
2010
2011
4,759,051 14,744,737 9,996,061 2,492,893 1,076,936 4,275,608 4,603,722 331,866 1,872,389 233,979 729,895 45,117,137
$ 4,063,142 14,806,966 9,632,256 2,419,772 1,070,986 4,063,153 4,515,161 473,735 1,739,854 195,163 702,517 43,682,705
$ 3,738,504 15,305,454 8,258,151 2,475,323 578,321 4,466,591 4,414,619 378,055 1,738,124 315,612 668,251 42,337,005
322,003 1,750 1,077,428 6,375 203,733 1,313,894 197,614 153,754 3,276,551
55,158 721,551 217,317 4,451 293,757 1,347,405 196,841 135,949 2,972,429
56,364 1,196,193 35,935 3,725 347,276 1,337,765 248,531 129,788 3,355,577
6-4
2012 $
4,377,616 14,954,815 8,853,319 2,492,955 1,116,838 5,029,397 4,374,397 257,459 1,772,164 752,824 633,430 44,615,214
74,391 968,728 34,295 4,875 390,375 1,368,016 322,813 123,280 3,286,773
2013 $
4,379,126 15,679,391 9,416,912 2,398,083 567,424 5,126,073 4,471,374 418,304 1,901,342 573,260 589,971 45,521,260
102,133 1,049,135 34,756 5,100 421,685 1,359,160 258,776 118,839 3,349,584
2014 $
4,053,402 15,596,565 9,188,965 3,017,452 991,057 4,715,868 4,860,097 421,280 1,836,649 317,798 586,291 45,585,424
118,052 1,041,080 33,345 233,717 410,641 1,365,146 269,631 144,588 3,616,200
2015 $
3,887,452 16,623,855 8,409,654 3,245,915 1,083,657 5,196,202 4,887,711 361,345 1,961,687 315,967 506,836 46,480,281
86,745 996,278 38,274 4,475 412,815 1,395,346 210,738 108,435 3,253,106
City of Midland, Michigan
Receiving and fi... - 125 of 189
Changes in Governmental Net Position Last Eight Years (Accrual basis of accounting) Fiscal Year Ended June 30, 2008
Operating grants and contributions Capital grants and contributions
$
5,329,978 2,317,791
2009 $
2010
2011
4,908,102 1,183,580
$ 4,766,634 1,388,911
$ 4,841,547 727,076
2012 $
5,679,405 1,986,926
2013 $
5,397,059 4,309,370
2014 $
6,907,656 2,304,230
2015 $
5,993,971 1,630,546
Total program revenue
11,382,127
9,368,233
9,127,974
8,924,200
10,953,104
13,056,013
12,828,086
10,877,623
Net (expense) revenue
(48,757,192)
(35,748,904)
(34,554,731)
(33,412,805)
(33,662,110)
(32,465,247)
(32,757,338)
(35,602,658)
General revenues: Property taxes Other tax related revenue Intergovernmental Unrestricted investment earnings Gain on sale of capital assets Miscellaneous revenues Transfers Total general revenues and transfers
32,356,906 1,286,806 3,498,861 2,356,183 15,056 (987,631) 38,526,181
28,846,094 2,003,766 3,281,751 554,437 202,090 815,482 (1,128,935) 34,574,685
31,971,428 2,072,970 2,918,791 106,025 344,211 666,042 (1,650,312) 36,429,155
31,549,496 2,117,699 2,918,791 72,980 12,416 765,507 (1,038,466) 36,398,423
33,846,512 2,108,016 3,187,163 59,313 303,677 755,552 (841,992) 39,418,241
33,949,025 2,012,014 3,262,543 44,690 862,213 (1,797,796) 38,332,689
35,309,085 2,289,586 3,343,960 48,014 271,934 728,404 (1,783,790) 40,207,193
35,240,503 2,197,581 3,399,564 42,812 258,664 717,628 (2,413,600) 39,443,152
Change in governmental net position
$ (10,231,011) $
(1,174,219) $ 1,874,424
Source: City's Comprehensive Annual Financial Report
6-5
$ 2,985,618
$
5,756,131
$
5,867,442
$
7,449,855
$
3,840,494
City of Midland, Michigan
Receiving and fi... - 126 of 189
Operating revenue Water customer fees Wastewater customer fees Landfill use and admission charges Civic Arena use and admission charges Other use and admission charges Rentals Fines and forfeits Other revenue Total operating revenue Operating expenses Water Wastewater Real estate rental Landfill Civic Arena Other operating Administration Maintenance Other expenses Depreciation Total operating expenses Operating income (loss)
Changes in Business-type Net Position Last Eight Fiscal Years (Accrual basis of accounting)
2008
2009
$ 8,271,119 4,827,045 3,424,819 1,064,509 1,094,166 2,651,509 171,250 21,504,417
$ 8,241,111 5,023,302 3,701,334 1,149,686 1,160,471 2,783,672 160,152 296,730 22,516,458
3,662,404 1,129,031 2,228,946 2,189,039 1,152,330 1,362,218 1,754,302 4,090,615 4,065,398 21,634,283
3,720,724 1,272,180 2,728,781 1,186,663 4,114,875 2,205,837 4,936,116 27,209 3,996,687 24,189,072
(129,866)
(1,672,614)
2010 $
Fiscal Year Ended June 30, 2011 2012
9,041,009 5,244,636 3,362,957 1,077,498 1,150,138 2,882,931 141,762 305,571 23,206,502
$9,383,395 5,488,692 3,867,944 1,061,241 990,554 2,912,059 166,900 2,073,180 25,943,965
3,750,511 1,396,730 2,515,598 967,769 3,978,810 2,357,378 4,550,779 6,380 4,021,646 23,545,601
3,800,821 1,363,214 2,514,219 958,301 4,342,252 2,308,525 4,712,824 74,613 3,967,213 24,041,982
3,945,792 1,309,094 2,577,617 812,943 4,640,670 2,351,223 4,436,506 67,688 4,356,092 24,497,625
1,901,983
620,718
(339,099)
6-6
$
10,141,703 5,470,243 3,289,167 962,949 1,074,941 2,906,171 169,804 1,103,365 25,118,343
2013 $
2014
2015
10,223,565 5,659,485 3,322,110 1,000,933 845,084 2,902,606 169,476 1,133,074 25,256,333
$ 10,259,149 5,741,780 2,903,936 1,089,540 915,279 2,937,966 176,468 1,156,174 25,180,292
$ 10,590,971 5,825,591 2,924,072 1,099,398 894,559 3,064,928 188,185 2,407,044 26,994,748
4,117,868 1,265,702 2,735,828 811,745 4,530,073 2,322,441 4,910,689 92,809 4,655,137 25,442,292
3,987,108 1,269,146 2,777,228 831,961 4,578,775 2,421,548 5,517,411 74,727 4,619,802 26,077,706
4,035,899 1,310,491 2,850,976 836,794 4,609,079 2,452,806 5,365,141 462,608 4,678,458 26,602,252
(185,959)
(897,414)
392,496
City of Midland, Michigan
Receiving and fi... - 127 of 189
Changes in Business-type Net Position Last Eight Fiscal Years (Accrual basis of accounting)
2008 Nonoperating revenue (expenses) Interest income (losses) Contractual revenues Gain(loss) on disposition of assets Sales of meals - revenue Sales of meals - expenses Contributions Other revenue Interest expense Other expenses Total non-operating revenues (expenses) Income (loss) - before contributions and transfers Capital contributions Operating transfers in Operating transfers out Change in net position Some amounts reported for business-type activities in the statement of activities are different because of net revenue (expense) of certain internal services is reported with business-type activities.
$
2009
2010
769,663 $ 215,574 $ 1,057,953 1,003,592 41,217 (32,336) 449,200 497,666 (590,941) (625,606) 110,058 803,172 641,925 (1,059,154) (881,393) (1,281,656) (121,236) 299,512 698,186
Fiscal Year Ended June 30, 2011 2012
219,266 $ 212,289 $ 847,664 504,154 12,195 (16,356) 530,282 (657,883) 623,984 (776,434) (683,148) (128,889) 670,185 16,939
2013
94,324 $ 453,978 (978) 7,335 (618,300) (63,641)
44,213 $ 683,454 62,766 304,625 (531,576) 563,482
2014
2015
211,615 $ 796,982 (36,337) 122 (500,999) 471,383
37,561 430,590 (24,827) (443,740) (416)
169,646
(974,428)
331,086
1,918,922
557,077
377,523
(426,031)
392,080
392,000 1,301,390 (313,760)
1,426,045 1,210,497 (81,562)
452,000 1,661,116 (10,804)
813,196 1,160,466 (122,000)
858,000 1,440,432 (598,440)
386,559 1,949,796 (152,000)
1,459,632 1,949,647 (165,857)
526,929 2,523,600 (110,000)
1,549,276
1,580,552
2,433,398
3,770,584
2,257,069
2,561,878
2,817,391
3,332,609
73,099
4,537,681
179,846
$
6,971,079
$3,950,430
$
1,932,806
$
2,344,499
$
2,728,615
$
3,838,098
$
8,845,503
$6,936,048
$
7,688,937
$
8,211,941
$ 10,178,470
$
7,678,592
(355,109)
Change in net position of business-type activities
$ 1,194,167
$ 1,653,651
Total primary government changes in net position
$ (9,036,844) $
479,432
Source: City's Comprehensive Annual Financial Report
6-7
(324,263)
(217,379)
(88,776)
505,489
City of Midland, Michigan
Receiving and fi... - 128 of 189
Fund Balances - Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting)
2006 General Fund: Non-spendable Reserved/restricted Committed Assigned Unreserved/unassigned Total general fund All other governmental funds: Non-spendable Reserved/restricted Committed Assigned Unreserved/unassigned Total all governmental funds
$
32,321,210 5,392,288
2007 $
26,171,316 7,386,734
2008 $
16,395,961 8,481,194
2009 $
503,605 5,946,963
2010 $
608,739 6,489,409
2011 $
136,717 1,202,239 570,175 5,381,543
2012 $
133,810 3,316,281 441,498 4,847,648
2013 $
112,293 3,475,477 724,234 4,673,073
2014 $
131,276 4,070,246 1,587,549 5,381,936
2015 $
112,689 4,715,292 2,521,867 5,569,212
37,713,498
33,558,050
24,877,155
6,450,568
7,098,148
7,290,674
8,739,237
8,985,077
11,171,007
12,919,060
6,457,181 9,528,365
5,678,635 7,206,067
4,813,284 6,187,985
2,364,469 5,518,346
3,455,381 5,255,550
544,266 1,991,078 4,980,494 2,280,930 -
260,964 8,321,213 787,232 2,474,649 -
262,318 14,079,025 745,674 1,505,368 -
263,948 11,403,386 1,805,573 1,529,650 (295,629)
377,847 11,126,587 913,441 2,185,102 -
$ 53,699,044
$ 46,442,752
$ 35,878,424
$ 14,333,383
$ 15,809,079
$ 17,087,442
$ 20,583,295
$
25,577,462
Notes: a. The City changed its accounting for trust deeds resulting in a restatement of the beginning fund balance for 2006-07 b. GASB #54 was adopted in fiscal year 2011 which changed fund balance classification to depict the relative strength of spending constraints. Previous years' fund balances were not restated to reflect the implementation. c. The City adopted GASB 63 and 65 during fiscal year 2012-13. Beginning fund balances were restated to reflect the implementation. Information from prior years has not been restated on this schedule.
Source: City's Comprehensive Annual Financial Report
6-8
$ 25,877,935
$ 27,522,037
City of Midland, Michigan
Receiving and fi... - 129 of 189
Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting)
Revenue Taxes Other tax related revenue Licenses and permits Federal grants Intergovernmental - other Charges for services Use and admission charges Interest income Contributions and other revenues Total revenue
2006
2007
$ 27,008,416 1,153,613 653,100 1,085,841 7,973,317 3,180,973 179,854 2,794,357 1,712,922 45,742,393
$ 32,851,962 1,245,590 610,552 952,997 8,668,945 3,402,244 190,969 3,314,070 1,777,651 53,014,980
4,884,935 11,563,868 4,971,656 2,346,672 820,803 3,322,203 3,630,846 176,711 1,598,969 1,977,046 4,470,025 5,949,213 75,000 13,438 45,801,385
Expenditures Current: General government Public safety Public works Sanitation Community and economic development Parks and recreation Library and community television Airport Transportation Property tax appeals Other functions Capital outlay Debt service Principal retirement Interest and fiscal charges Bond issuance costs Total expenditures Excess of revenue over (under) expenditures
$
2009
2010
2011
32,780,512 1,284,513 723,926 1,091,510 8,304,033 3,730,365 179,457 2,167,082 1,886,786 52,148,184
$ 29,856,356 993,504 691,818 589,931 7,626,527 4,039,431 203,733 554,437 1,564,536 46,120,273
$ 32,958,572 1,085,826 589,383 720,821 6,999,278 3,955,473 202,759 106,028 1,671,296 48,289,436
$ 32,601,169 1,066,026 826,957 639,710 7,172,217 3,903,492 256,399 72,980 2,041,456 48,580,406
4,904,021 12,072,103 5,373,310 2,209,944 938,099 3,419,246 3,767,747 282,341 1,651,533 10,080,498 4,877,761 7,571,908
5,219,281 12,667,757 6,203,605 2,344,715 911,615 3,471,155 3,901,737 308,020 1,676,251 13,310,099 5,056,228 6,163,166
6,529,289 14,768,233 6,445,296 2,500,680 1,075,003 4,115,310 4,358,371 295,589 1,730,521 36,535,706 236,363 4,093,449
6,221,120 14,867,678 5,988,481 2,480,790 1,077,207 3,971,848 4,270,662 285,333 1,693,097 195,163 1,216 3,400,930
75,000 12,161 57,235,672
100,000 4,255 61,337,884
930,000 594,207 106,177 84,314,194
(9,189,700)
(38,193,921)
(58,992) $ (4,220,692)
2008 $
6-9
2012
2013
2014
2015
34,821,993 1,132,535 697,201 768,916 9,285,967 3,895,197 266,000 59,313 2,043,569 52,970,691
$ 33,949,025 2,012,014 687,480 583,218 8,980,832 3,738,361 282,393 44,671 4,787,548 55,065,542
$ 35,309,085 2,289,586 705,846 512,378 8,082,919 3,781,899 304,482 50,441 3,666,261 54,702,897
$ 35,240,503 2,197,581 615,087 1,790,873 8,440,204 3,934,671 289,388 44,947 2,361,388 54,914,642
6,045,687 15,779,974 5,850,900 2,491,420 579,551 4,262,675 4,161,210 326,472 1,629,824 315,612 3,287,839
6,213,044 15,182,480 5,361,940 2,542,662 1,116,817 4,773,512 4,132,462 429,792 1,715,709 752,824 4,596,798
6,139,588 15,724,988 5,858,277 2,450,295 566,585 4,888,990 4,079,055 362,084 1,819,483 573,260 4,125,670
5,812,138 15,942,908 5,860,312 3,116,963 987,265 4,625,415 4,465,518 357,187 1,776,592 317,798 7,701,939
6,140,897 15,826,112 5,744,942 3,214,241 1,072,069 4,832,184 4,185,644 313,461 1,822,045 315,967 6,765,986
930,000 686,907 46,070,432
965,000 652,854 46,349,018
1,000,000 618,243 48,436,283
1,040,000 582,106 48,210,381
1,085,000 546,394 52,595,429
1,130,000 501,793 51,865,341
2,219,004
2,231,388
4,534,408
6,855,161
2,107,468
3,049,301
$
City of Midland, Michigan
Receiving and fi... - 130 of 189
Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting)
2006 Proceeds from sale of capital assets Issuance of debt Bond discount Operating transfers in Operating transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning of year Prior period adjustment Fund balances - beginning of year restated Fund Balances - end of year Debt service as a percentage of noncapital expenditures
$
2007
2008
184,721 $ 82,817 $ 9,465,578 6,928,776 (12,478,678) (8,515,227) (2,828,379) (1,503,634)
2009
2010
2011
2012
202,853 $ 231,991 $ 373,270 $ 12,416 $ 17,890,000 (212,243) 3,990,577 6,250,006 6,112,146 5,475,599 (5,568,058) (7,240,941) (7,228,724) (6,441,040) (1,374,628) 16,918,813 (743,308) (953,025)
2013
303,677 $ 5,365,648 (6,707,880) (1,038,555)
2014
2015
$ 292,266 $ 275,233 5,775,177 5,447,117 5,950,157 (7,636,171) (7,546,379) (7,630,589) (1,860,994) (1,806,996) (1,405,199)
(2,887,371)
(5,724,326)
(10,564,328)
(21,275,108)
1,475,696
1,278,363
3,495,853
4,994,167
300,472
1,644,102
56,586,415 56,586,415
52,167,078 52,167,078
46,442,752 46,442,752
35,878,424 (269,933) 35,608,491
14,333,383 14,333,383
15,809,079 15,809,079
17,087,442 17,087,442
20,583,295 20,583,295
25,577,463 25,577,463
25,877,935 25,877,935
$ 53,699,044
$ 46,442,752
20,583,295
$ 25,577,462
$ 25,877,935
$ 27,522,037
0.22%
0.18%
3.69%
3.68%
$
35,878,424
$ 14,333,383
$ 15,809,079
$ 17,087,442
0.19%
2.03%
3.79%
3.69%
$
Notes: a. The City changed ints accounting for trust deeds resulting in a restatement of the beginning fund balance for 2006-07 b. GASB #54 was adopted in fiscal year 2011 which changed fund balance classification to depict the relative strength of spending constraints. Previous years' fund balances were not restated to reflect the implementation. c. The City adopted GASB 63 and 65 during fiscal year 2012-13. Beginning fund balances were restated to reflect the implementation. Information from prior years has not been restated on this schedule. Source: City's Comprehensive Annual Financial Report
6 - 10
3.63%
3.62%
Receiving and fi... - 131 of 189
City of Midland, Michigan
Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.
6 - 11
City of Midland, Michigan
Receiving and fi... - 132 of 189
Taxable Value and Asessed Value of Taxable Property Last Ten Fiscal Years
Taxable Value by Property Type: Real property:
Tax Year
Residential
Commercial
Industrial
Personal Property
IFT
Total Taxable
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$ 921,024,100 956,874,300 985,927,900 971,965,400 979,020,097 951,562,970 952,144,178 958,884,435 959,609,754 969,556,079
$ 248,085,800 261,931,600 275,311,300 277,831,600 297,391,800 316,006,033 327,111,317 330,886,336 333,110,965 349,087,802
$ 878,201,900 900,622,800 852,016,300 428,969,200 437,612,915 611,162,938 638,919,909 257,136,486 274,004,530 279,241,087
$ 384,728,900 390,489,900 411,946,800 413,179,000 443,958,900 424,376,400 444,685,633 654,870,458 758,978,000 734,932,000
$ 121,477,400 103,285,200 116,559,600 153,897,600 186,616,300 215,828,097 210,469,800 201,655,272 193,860,700 182,995,100
$ 2,553,518,100 2,613,203,800 2,641,761,900 2,245,842,800 2,344,600,012 2,518,936,438 2,573,330,837 2,403,432,987 2,519,563,949 2,515,812,068
Note: Under Michigan law, the revenue base is taxable value Taxes levied in a particular "tax year" become revenue of the subsequent fiscal year Source: City Assessing Department
6 - 12
Tax Rate (mills) 9.79 12.10 12.24 12.99 13.94 13.94 14.79 14.79 15.08 15.04
Total Assessed Value $ 2,811,712,100 2,835,912,600 2,814,224,200 2,310,292,800 2,390,601,500 2,563,694,950 2,619,321,633 2,441,872,370 2,558,592,000 2,561,941,100
Taxable Value as a % of Assessed 90.82 92.15 93.87 97.21 98.08 98.25 98.24 98.43 98.47 98.20
City of Midland, Michigan
Receiving and fi... - 133 of 189
Direct and Overlapping Property Tax Rates Last Ten Fiscal Years
Millage Rates - Direct City Taxes
Tax Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General Operating (1) 9.1700 11.8700 12.0000 12.7000 13.6700 13.6700 14.5000 14.5000 14.8000 14.7600
Debt 0.6200 0.2300 0.2400 0.2900 0.2700 0.2700 0.2900 0.2900 0.2800 0.2800
Total Direct Taxes* 9.7900 12.1000 12.2400 12.9900 13.9400 13.9400 14.7900 14.7900 15.0800 15.0400
Overlapping Taxes
Midland County 7.8255 8.0555 8.5555 8.7055 8.8355 8.8355 8.8355 8.8355 9.1355 8.8880
Bay County 10.9338 9.7100 10.8096 10.8138 10.8138 10.7138 10.8138 11.4638 11.4638 11.4638
Delta College 2.0427 2.0427 2.0427 2.0427 2.0427 2.0427 2.0427 2.0427 2.0427 2.0427
State Education 6.0000 6.0000 6.0000 6.0000 6.0000 6.0000 6.0000 6.0000 6.0000 6.0000
(3) (3) (3) (3) (3) (3) (3)
Bay/Arenac Midland School: Intermediate Intermediate School: NonSchool School Homestead homestead District District Midland Midland 4.9425 1.1756 5.5909 20.0000 4.9233 1.1756 5.3284 20.0000 4.9233 1.1756 5.2129 20.0000 4.9233 1.1756 4.2942 20.0000 4.9233 2.6756 2.7890 18.5000 4.9233 2.6756 2.7091 18.5000 4.9233 2.6756 2.0909 18.5000 4.9233 2.6756 1.9499 18.0000 4.9233 2.6756 1.7914 18.0000 4.9233 2.6756 1.7400 18.0000
* includes voter approved debt millage Note: Tax rates are applied upon each $1,000 of taxable value (1) City Charter authorizes 18 mills, but the State of Michigan Constitution (Headlee Amendment) restricts the maximum millage that may be levied by the City without a vote of our residents to 17.87 mills for General Operating. (2) Public Act 37 of 2007 amended MCL 380.1211 to exempt Commercial Personal Property from up to 12 mills of local school district operating millage. (3) Public Act 38 of 2007 amednded MCL 211.903, to exempt all property classified as Industrial Personal Property from payment of the State Education Tax (SET). Public Act 37 of 2007 amended MCL 380.1211 to exempt Industrial Personal Property from up to 18 mills of school operating millage. Source: City Assessing Department
6 - 13
School: Commercial Property Midland 10.2942 8.7890 8.7091 8.0909 7.9499 6.7914 8.7400
(2) (2) (2) (2) (2) (2) (2)
School: School: Non- School: Homestead homestead Commercial Bullock Bullock Property Creek Creek Bullock 7.0000 24.9208 7.0000 25.0000 7.0000 25.0000 7.0000 25.0000 13.0000 7.0000 25.0000 13.0000 7.0000 25.0000 13.0000 7.0000 25.0000 13.0000 7.0000 25.0000 13.0000 7.0000 25.0000 13.0000 7.0000 25.0000 13.0000
(2) (2) (2) (2) (2) (2) (2)
Receiving and fi... - 134 of 189
City of Midland, Michigan Direct and Overlapping Property Tax Rates Last Ten Fiscal Years
Overlapping Taxes
Tax Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
School: School: NonSchool: NonCommercial Nonhomestead Homestead homestead Property Homestead homestead Commercial Bay City Bay City Bay City Midland Midland Midland 1.1000 19.0640 32.4247 46.8338 2.3500 20.0247 34.7022 49.3738 2.3500 20.3500 35.2267 50.0138 2.3500 20.3500 8.3500 (2) 35.2080 50.9138 41.2080 2.3500 20.3500 8.3500 (2) 36.2828 51.9938 42.2828 2.8000 20.8000 8.8000 (2) 36.2029 51.9938 42.2029 2.9900 20.9900 8.9900 (2) 36.4347 52.8438 42.4347 2.9900 20.9900 8.9900 (2) 36.2937 52.3438 42.2937 2.9900 20.9900 8.9900 (2) 36.7252 52.9338 41.7252 2.9900 20.9900 8.9900 (2) 36.3863 52.6463 43.3863
Total Tax Rate
(2) (2) (2) (2) (2) (2) (2)
Nonhomestead Industrial Midland 29.2080 30.2828 30.2029 30.4347 30.2937 30.7252 30.3863
(3) (3) (3) (3) (3) (3) (3)
NonNonNonNonHomestead homestead homestead homestead Nonhomestead Bullock Bullock Commercial Industrial Homestead homestead Commercial Creek Creek Bullock Bullock Bay City Bay City Bay City 33.8338 51.7546 34.8090 52.7730 36.3738 54.3738 37.1260 54.8007 37.0138 55.0138 38.3656 56.3656 37.9138 55.9138 43.9138 (2) 31.9138 (3) 39.1198 57.1198 45.1198 40.4938 58.4938 46.4938 (2) 34.4938 (3) 40.0698 58.0698 46.0698 40.4938 58.4938 46.4938 (2) 34.4938 (3) 40.4198 58.4198 46.4198 41.3438 59.3438 47.3438 (2) 35.3438 (3) 41.5598 59.5598 47.5598 41.3438 59.3438 47.3438 (2) 35.3438 (3) 42.2098 60.2098 48.2098 41.9338 59.9338 47.9338 (2) 35.9338 (3) 42.4998 60.4998 48.4998 41.6463 59.6463 47.6463 (2) 35.6463 (3) 42.4598 60.4598 48.4598
* includes voter approved debt millage Note: Tax rates are applied upon each $1,000 of taxable value (1) City Charter authorizes 18 mills, but the State of Michigan Constitution (Headlee Amendment) restricts the maximum millage that may be levied by the City without a vote of our residents to 17.87 mills for General Operating. (2) Public Act 37 of 2007 amended MCL 380.1211 to exempt Commercial Personal Property from up to 12 mills of local school district operating millage. (3) Public Act 38 of 2007 amednded MCL 211.903, to exempt all property classified as Industrial Personal Property from payment of the State Education Tax (SET). Public Act 37 of 2007 amended MCL 380.1211 to exempt Industrial Personal Property from up to 18 mills of school operating millage. Source: City Assessing Department
6 - 14
(2) (2) (2) (2) (2) (2) (2)
Nonhomestead Industrial Bay City 33.1198 34.0698 34.4198 35.5598 36.2098 36.4998 36.4598
(3) (3) (3) (3) (3) (3) (3)
Receiving and fi... - 135 of 189
City of Midland, Michigan Principal Property Tax Payers
Taxpayer 1
Dow Chemical/Dow Agrosciences
2
2015 Taxable Value
Percentage of total
2006 Taxable Value
2006 rank
424,095,300
16.90%
2
$ 399,376,184
16.93%
Midland Cogeneration Venture
213,656,900
9.06%
634,311,100
25.27%
1
3
Dow Corning
138,523,200
5.87%
121,820,700
4.85%
3
4
Trinseo LLC
33,216,000
1.41%
-
-
%
-
5
Consumers Energy Company
25,437,165
1.08%
16,706,000
0.67%
4
6
Midland Downtown Partners LLC
20,378,300
0.86%
-
-
%
-
7
Midland Mall LLC
18,147,482
0.77%
15,049,100
0.60%
5
8
Cabot Corporation
11,621,500
0.49%
-
-
%
-
9
Midland Country Club
10,659,300
0.45%
-
-
%
-
9,787,663
0.42%
-
-
%
-
$ 880,803,694
37.34%
$ 1,211,982,200
10
H Hotel Total
$
Percentage of total
48.29%
The individual values are for real and personal property owned by the designated taxpayer, but not including industrial facilities taxable amounts. Source: City's Assessing Department
6 - 15
City of Midland, Michigan
Receiving and fi... - 136 of 189
Property Tax Levies and Collections
Fiscal Year Ended June 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Taxes Levied for Fiscal Year (Original Levy) $
24,355,843 29,962,104 25,949,887 27,669,516 30,629,774 32,973,831 35,569,456 32,972,444 33,821,073 33,813,675
Adjustments *
Total Adjusted Levy
$ (3,900,688) (1) $ 20,455,155 (4,654,988) (1) 25,307,116 9,610 25,959,497 (5,655) 27,663,861 (6,167) 30,623,607 (498) 32,973,333 (2,844,831) 32,724,625 (89,110) 32,883,334 (67,171) 33,753,902 (24,802) 33,788,873
Collected within the Fiscal Year of the Levy $
Percentage of Original Levy Collected
Collections in Subsequent Years
Total Collections to Date
Percentage of Total Collections to Adjusted Tax Levy
99.924 99.956 99.959 99.966 99.979 91.936 91.976 99.361 99.771 99.775
$ (3,885,176) (4,644,491) 20,312 3,031 (813) 2,657,318 (11,384) 74,383 (40,630) -
$ 20,452,226 25,304,507 25,959,497 27,663,073 30,622,506 32,971,977 32,703,912 32,836,023 33,702,854 33,737,447
99.986 99.990 100.000 99.997 99.996 99.996 99.937 99.856 99.849 99.848
24,337,402 29,948,998 25,939,185 27,660,042 30,623,319 30,314,659 32,715,296 32,761,640 33,743,484 33,737,447
* Adjustments represent changes to the levy that occur subsequent to the fiscal year; any adjustments made during the fiscal year are reflected in the original levy column. (1) Adjustments related to the MCV tax appeal settlement. For more information see Notes to Financial Statements. Source: City Treasurer's Office
6 - 16
Receiving and fi... - 137 of 189
City of Midland, Michigan
Debt Capacity These schedules contain 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.
6 - 17
City of Midland, Michigan
Receiving and fi... - 138 of 189
Ratios of Outstanding Debt
2006 Governmental activities General obligation bonds Capital leases Total governmental activities
$
Business-type activities General obligation bonds Revenue bonds Total business-type activities Total debt of the government
175,000 1,330,510 1,505,510
$
28,554,573
677
$
Total debt per capita personal income $ Total taxable value Ratio of total debt to taxable value
2008
100,000 1,164,223 1,264,223
$
25,356,937
610
26,818
$
1,042
$
1.17%
2009
983,651 983,651
$
19,363,882 2,310,000 21,673,882 $
41,551 $
$2,432,040,700
$
20,627,714 3,465,000 24,092,714
42,175 $
Total per capita personal income (2)
$
22,429,063 4,620,000 27,049,063
Total population (1) Total debt per capita
2007
22,657,533
2010
16,662,808 782,160 17,444,968
$
18,364,750 1,155,000 19,519,750 $
41,054
36,964,718
2011
15,754,036 614,097 16,368,133
$
17,379,872 17,379,872 $
40,917
33,748,005
2012
20,771,216 409,524 21,180,740
16,344,992 16,344,992 $
40,807
37,525,732
552
$
903
$
827
$
896
26,818
$
26,818
$
26,818
$
29,946
$
946
$
845
$
1,410
$
1,153
$
1.01%
$2,525,202,300 0.90%
$2,091,945,200 1.77%
(1) Estimates provided by City Planning Department (2) US Bureau of Census Source: City Annual Financial Statements: Population Data reported from demographics data
6 - 18
$ 2,157,983,712 1.56%
19,559,396 209,187 19,768,583
$
35,013,982
836
30,803
$
1,243
$
1.63%
2014
18,408,507 18,408,507
$
33,187,570
790
30,574
$
1,145
$
1.48%
2015
17,092,657 17,092,657
$
30,566,720
724
32,185
$
1,031
$
1.51%
15,721,807 15,721,807
12,184,064 12,184,064 $
42,202 $
$2,201,777,715
$
13,474,063 13,474,063
42,020 $
$ 2,362,861,037
$
14,779,063 14,779,063
41,863 $
$ 2,303,108,341
$
15,245,399 15,245,399
41,863
$
$2,509,918,600
$
2013
27,905,871 42,181
$
662
31,540
$
31,627
969
$
882
$2,325,703,249 1.31%
$2,332,816,968 1.20%
City of Midland, Michigan
Receiving and fi... - 139 of 189
Ratios of General Bonded Debt Outstanding
General Fiscal Year Bonded Debt 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$
175,000 100,000 16,662,808 15,754,036 20,771,216 19,559,396 18,408,507 17,092,657 15,721,807
Taxable Value $
Debt as a Percentage of Taxable Value
2,432,040,700 2,509,918,600 2,525,202,300 2,091,945,200 2,157,983,712 2,303,108,341 2,362,861,037 2,201,777,715 2,325,703,249 2,332,816,968
0.007% 0.004% 0.000% 0.797% 0.730% 0.902% 0.828% 0.836% 0.735% 0.674%
Population 42,175 41,551 41,054 40,917 40,807 41,863 41,863 42,020 42,202 42,181
(1) (1) (1) (1) (1) (1) (1) (1) (1) (1)
(1) Estimates provided by City Planning Department (2) U.S. Bureau of the Census Source: City's financial records
6 - 19
Business Type Debt $
27,049,063 24,092,714 21,673,882 19,519,750 17,379,872 16,344,992 15,245,399 14,779,063 13,474,063 12,184,064
Total General Bonded and Business Type Debt $
27,224,063 24,192,714 21,673,882 36,182,558 33,133,908 37,116,208 34,804,795 33,187,570 30,566,720 27,905,871
Debt Per Capita $
646 582.24 527.94 884.29 811.97 886.61 831.40 789.80 724.30 661.57
Per Capita Personal Income $ 26,818 26,818 26,818 26,818 29,946 30,803 30,574 32,185 31,540 31,627
% of Personal Income (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)
2.41% 2.17% 1.97% 3.30% 2.71% 2.88% 2.72% 2.45% 2.30% 2.09%
City of Midland, Michigan
Receiving and fi... - 140 of 189
Direct and Overlapping Debt
Governmental Unit
Debt Outstanding
Direct debt - City of Midland
$
Overlapping debt: Bay City School District Bullock Creek School District Midland School District Bay County Midland County Bay-Arenac Intermediate School District Total overlapping debt
Estimated % Applicable
15,721,807
100.00%
58,415,000 11,145,000 64,110,000 10,810,146 24,489,188 2,735,000
0.25% 0.42% 82.66% 0.15% 62.09% 0.13%
Estimated Share of Overlapping Debt* $
146,038 46,809 52,993,326 16,215 15,205,337 3,556
171,704,334
Total
$
187,426,141
15,721,807
68,411,281 $
84,133,088
* Overlapping debt is calculated as the issuer's proportionate share of the debt of other local governmental units that overlap it (the issuer is located either wholly or partly within the geographic limits of the other units) or underlie it (the other units are located within the geographic limits of the issuer). The debit is generally apportioned based upon relative assessed property values. --- Source http://emma.msrb.org/educationcenter/Glossary.aspx
6 - 20
City of Midland, Michigan
Receiving and fi... - 141 of 189
Legal Debt Margin
2006 Debt limit
$
Total net debt applicable to limit Legal debt margin
281,171,210
$
22,604,063 $
Total net debt applicable to the limit as a percentage of debt limit
Legal Debt Margin Calculation for Fiscal Year 2015 Debt limit: 2014 state equalized valuation Debt limit (10% of state equalized valuation) (1)
2007
258,567,147
Total debt limit
283,591,260
$
20,727,714 $
8.04%
$ x
2008
262,863,546
7.31%
2009
281,422,420
$
19,363,882 $
262,058,538
231,029,280
$
196,001,722
6.88%
15.16%
2,561,941,100 10.00%
27,905,871 -
Total amount of debt applicable to debt limit Legal debt margin
27,905,871 $
$
35,027,558
256,194,110
Debt applicable to debt limit: Total bonded debt Less: deductions allowed by law:
2010
228,288,239
Limitations on borrowing (1) Act 279, Public Acts of Michigan, 1909, as amended, and provisions of the City Charter state that net bonded indebtedness of the City shall not exceed 10 percent of the City's Assessed valuation. Bonds which are not required to be included in this computation of net indebtedness, according to said Act 279, are: A. Special Assessment Bonds B. Mortgage Bonds C. Motor Vehicle Highway Fund Bonds D. Revenue Bonds E. Bonds issued, or contracts or assessment obligation, incurred to comply with an order of the Water Resources Commission or a court of competent jurisdiction F. Other obligations incurred for water supply, sewage, drainage or refuse disposal projects necessary to protect the public health by abating pollution.
6 - 21
239,060,150
2011 $
33,133,908 $
205,926,242
13.86%
256,369,495
2012 $
37,116,208 $
219,253,287
14.48%
261,932,163
2013 $
34,804,795 $
226,063,100
13.29%
244,187,237
2014 $
33,187,570 $
210,999,667
13.59%
2015
255,859,200
$
30,566,720 $
225,292,480
11.95%
256,194,110 27,905,871
$
228,288,239
10.89%
City of Midland, Michigan
Receiving and fi... - 142 of 189
Pledged-Revenue Coverage
Water Revenue Bonds Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Operating Expenses
Gross Revenues $
10,044,232 10,479,515 10,818,541 10,975,338 11,216,050 11,499,995 11,535,436 11,723,866 12,037,632 11,824,433
$
7,154,593 7,786,003 7,747,720 8,078,020 8,017,287 8,180,881 9,457,224 9,915,667 10,344,900 10,386,152
Principal
Net Revenues $
2,889,639 2,693,512 3,070,821 2,897,318 3,198,763 3,319,114 2,078,212 1,808,199 1,692,732 1,438,281
Debt service Interest
$
6 - 22
1,155,000 1,155,000 1,155,000 1,155,000 -
$
295,680 237,930 180,180 121,275 -
Total $
1,450,680 1,392,930 1,335,180 1,276,275 -
Coverage 1.99 1.93 2.30 2.27 0.00 0.00 0.00 0.00 0.00 0.00
Receiving and fi... - 143 of 189
City of Midland, Michigan
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.
6 - 23
City of Midland, Michigan
Receiving and fi... - 144 of 189
Demographic and Economic Statistics
Fiscal year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Personal Income (in thousands)
Population 42,175 41,551 41,054 40,917 40,807 41,863 41,863 42,020 42,202 42,181
Per Capita Personal Income (2)
(1) (1) (1) (1) (1) (1) (1) (1) (1) (1)
(3) (3) (3) (3) 25,723 26,776 26,446 27,811 27,575 28,316
(2) (2) (2) (2) (2) (2)
(1) Estimates provided by City Planning Department (2) U.S. Bureau of the Census (3) Information not available (4) Michigan Department of Labor and Economic Growth
6 - 24
26,818 26,818 26,818 26,818 29,946 30,803 30,574 32,185 31,540 31,627
Median Age (2)
Unemployment rate (4)
36.2 36.2 36.2 36.2 36.5 36.8 36.5 37.6 37.4 37.3
4.2 4.5 5.1 8.5 7.5 6.6 5.7 6.1 5.0 4.2
Receiving and fi... - 145 of 189
City of Midland, Michigan Principal Employers
Taxpayer
2015 Employees (2)(3)
1
Dow Chemical Company
5,087
25.29%
5,800
29.03%
1
2
MidMichigan Health
2,140
10.64%
3,200
16.02%
2
3
Dow Corning Corporation
1,422
7.07%
1,654
8.28%
4
4
Chemical Bank
479
2.38%
420
2.10%
9
5
City of Midland
405
2.01%
495
2.48%
8
6
Meijer
380
1.89%
600
3.00%
6
7
Northwood University
337
1.68%
(1)
(1)
(1)
8
Quad Graphics
330
1.64%
(1)
(1)
(1)
9
Midland County ESA
310
1.54%
(1)
(1)
(1)
Three Rivers
302
1.50%
(1)
(1)
(1)
10
Percentage of Total
(1) Information not available (2) Source: Midland Tomorrow, 2014 (3) Full-time equivalents
6 - 25
2006 Employees
Percentage of Total
2006 Rank
City of Midland, Michigan
Receiving and fi... - 146 of 189
Full-time Government Employees Last Ten Fiscal Years
Function/Program General government City Manager City Clerk City Treasurer Assessing City Attorney Finance Human Resources/Risk Management Purchasing
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
4 4 6 5 3 7 5 1
4 4 6 5 3 8 5 1
4 4 6 5 3 8 5 1
4 4 6 5 3 8 4 1
4 4 4 5 3 8 4 1
3 4 4 4 3 8 4 1
4 4 4 4 3 8 4 1
2 4 4 4 3 8 4 1
2 4 4 4 3 8 4 1
2 4 4 4 3 8 4 1
Public safety: Police Fire Building inspection Planning
51 46 7 6
51 46 7 6
51 46 7 6
51 46 7 6
51 46 6 4
50 46 6 4
50 46 6 4
50 46 6 4
50 46 6 4
50 46 6 4
Public works: Engineering Public Works
15 39
15 39
15 39
15 38
14 34
12 33
12 31
12 30
12 30
12 29
5
5
5
5
5
5
5
5
5
7
Parks and recreation
33
34
34
34
29
25
26
26
26
24
Grace A. Dow Library
23
23
23
21
20
19
19
18
18
18
Downtown Development Authority
1
1
1
1
1
-
-
-
1
1
Dial-A-Ride
7
7
6
6
6
6
5
5
5
5
Civic Arena
-
-
-
-
2
2
2
2
2
2
Landfill
8
8
8
9
9
9
9
9
10
10
Senior Housing Washington Woods Riverside Place
8 6
7 6
7 6
7 6
6 6
6 6
6 6
6 6
6 6
6 6
Currie Municipal Golf Course
-
-
1
3
4
7
7
7
7
-
Wastewater
22
22
22
22
20
20
20
20
20
20
Water
36
36
36
36
35
34
34
33
33
33
4
4
3
3
3
3
3
3
3
3
15
15
15
15
15
15
15
15
13
13
Municipal Service Center
1
-
1
1
1
1
1
1
1
-
Information Services - Operations
7
7
6
6
6
6
6
5
5
5
Geographic Information Systems
2
2
2
2
2
1
1
-
-
-
377
377
376
375
358
347
346
339
339
330
Sanitation
Midland Community Television Equipment Revolving
Total Source: City of Midland Annual Budget
6 - 26
Receiving and fi... - 147 of 189
City of Midland, Michigan
Operating Information These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
6 - 27
City of Midland, Michigan
Receiving and fi... - 148 of 189
Function/ Program General government Building permits issued Building inspections conducted (1) Public safety Police Physical arrests Traffic violations Investigations/complaints Fire Fire runs Rescue/medical Hazardous All other calls Public works Street maintenance (millions of dollars) Sidewalk maintenance (thousands of dollars) Refuse collected (compacted cubic yards) Brush and heavy item (cubic yards) Fall leaf collection (cubic yards)(2) Parks and recreation Softball teams supported Picnic reservations (sheltered and open area) Library Volumes in collection Circulation (books borrowed) Airport (take-offs and landings) Landfill Vehicle traffic Tons per day Senior housing apartment complexes Washington Woods Occupancy Percent turnover Average age of residents Riverside Place Occupancy Percent turnover Average age of residents
Operating Indicators Last Ten Fiscal Years
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
3,127 5,642
2,798 6,156
3,021 6,226
2,601 4,989
3,023 7,211
3,789 5,959
3,594 3,377
3,020 3,502
2,727 3,404
2,504 4,174
1,406 7,719 15,554
1,256 6,013 15,749
1,274 5,856 15,851
999 6,224 14,523
1,069 4,679 13,883
1,425 4,009 13,833
1,182 4,294 13,840
1,018 4,549 13,683
1,524 3,989 13,915
1,240 3,988 13,436
92 2,683 577 930
83 2,944 406 930
104 3,080 347 963
68 3,080 389 977
109 3,018 322 1,002
82 2,999 458 1,165
97 3,018 339 1,299
118 3,127 317 1,359
70 3,141 391 1,361
80 3,147 333 1,376
1.56 121.47 46,343 54,039 17,616
$ 1.65 $ 117.48 42,420 43,591 16,956
$ 2.20 $ 148.40 54,157 58,300 16,050
$ 1.94 $ 143.06 57,006 54,527 16,728
$ 2.13 $ 362.82 64,316 70,946 16,968
$ $
2.23 372.61 58,840 66,766 15,061
$ $
2.50 436.98 54,331 64,229 15,936
$ $
2.54 405.91 54,956 61,456 16,524
$ $
1.73 364.99 52,364 51,306 17,970
$ $
1.93 218.50 49,482 52,073 15,421
$ $
334 758
327 622
311 488
282 595
263 603
260 621
236 626
201 543
204 550
195 546
282,281 796,540 10,847
280,100 810,133 9,245
275,085 833,798 9,161
271,152 856,376 9,336
262,065 860,380 9,083
257,203 846,487 9,424
256,631 814,529 9,578
253,104 789,851 8,061
249,169 745,669 7,851
248,849 721,496 7,465
35,907 467
41,192 635
35,393 506
33,839 628
31,235 483
31,947 699
28,817 556
28,201 615
28,863 526
29,349 489
99% 23% 85
100% 24% 83
99% 19% 83
99.5% 15% 80
99.0% 15% 83
96.0% 24% 81
94.0% 29% 80
98.0% 28% 80
96.0% 28% 79
95.9% 22% 78
100% 25% 85
100% 32% 86
100% 35% 86
100% 23% 86
100% 21% 87
100% 25% 87
100% 24% 87
100% 26% 86
100% 26% 85
99% 33% 86
6 - 28
City of Midland, Michigan
Receiving and fi... - 149 of 189
Function/ Program Public transportation (passengers served) Sewer Average daily sewage treatment (MGD) Annual sewage treatment (MG) Water Finished water pumped (MG) Domestic Industrial Total
Operating Indicators Last Ten Fiscal Years
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
161,497
153,670
155,216
147,093
129,491
126,846
129,674
113,893
107,181
103,306
7.22 2,635.30
8.05 2,937.85
6.96 2,541.55
8.40 3,066.66
6.58 2,393.76
7.23 2,640.53
6.14 2,419.16
7.41 2,703.48
6.72 2,450.27
6.27 2,287.28
3,501.33 4,320.86 7,822.19
3,520.67 4,175.89 7,696.56
3,591.76 4,117.73 7,709.49
3,381.69 3,584.78 6,966.47
3,375.07 3,561.20 6,936.27
3,445.52 3,695.13 7,140.65
3,479.23 4,172.44 7,651.67
3,348.42 3,790.94 7,139.36
3,261.59 3,752.69 7,014.28
3,100.10 3,894.11 6,994.21
NA - Information not available MG - Million gallons MGD - Million gallons/day Notes: a. 2011 and prior accounted for by individual inspection; 2012 and later accounted for by project b. 2015 in prior years, the quantity of leaves collected were multiplied by a compaction rate of 4. This computation has been revised and prior years have been restated. Sources: City records, city departments, department annual reports, and city website - www.midland-mi.org
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City of Midland, Michigan
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Function/ Program Public safety Police Stations Patrol units Detective vehicles SWAT van Administrative and warrant officer vehicle Fire Stations Fire response vehicles Emergency response vehicles Public works Major streets (miles) Local streets (miles) State highways (miles) Sidewalks (miles) Traffic signals (city owned) Refuse collection trucks Parks and recreation Acreage Regional park and recreation areas Community parks Block and district parks Golf courses 9-hole municipal par-3 18-hole municipal Golf course clubhouse Ice arena (b) Swimming pool Skateboard park Spray ground facilities (j) Library branches Airport Runways Terminal building (c) City-owned hangars (leased)
Capital Asset Statistics Last Ten Fiscal Years
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1 14 4 1 4
1 14 4 1 4
1 14 4 1 3
1 15 4 1 3
1 13 4 1 4
1 13 4 1 2
1 14 4 1 3
1 15 4 1 3
1 15 4 1 3
1 15 5 1 3
3 6 1
3 6 1
3 6 1
3 6 1
3 6 1
3 6 1
3 6 1
3 6 1
3 6 1
3 6 1
78 154 16 352 73 13
78 154 16 353 72 13
78 155 16 353 72 13
77 156 16 354 72 13
77 156 16 355 72 13
82 151 16 355 74 13
82 151 16 356 74 15
82 152 16 357 76 14
82 152 16 357 76 14
82 153 16 357 77 14
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
2,700 8 7 55
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 2 1
1 2 2 1 1 1 3 1
2 1 14
2 1 14
2 1 14
2 1 14
2 1 14
2 1 14
2 1 14
2 1 14
2 1 14
2 1 14
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City of Midland, Michigan
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Function/ Program Public transportation-Dial-A-Ride busses Landfill Current airspace (compacted cubic yards) (d)(g)(h) Total future airspace (compacted cubic yards) (e) Senior housing apartment complexes Washington Woods (units) Riverside Place (units) Sewer Sanitary sewers (miles) Storm sewers (miles) Treatment capacity (million gallons/day) Water (f) Water mains (miles) Fire hydrants Storage capacity (million gallons) Treatment plant capacity (million gallons/day) Potable water Industrial grade water Total
Capital Asset Statistics Last Ten Fiscal Years
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
14
15
14
14
14
14
14
14
14
14
1,126,046 8,965,124
905,764 8,740,847
2,556,451 6,889,689
2,304,084 6,889,689
2,347,971 6,889,689
2,205,036 6,889,689
2,041,275 6,889,689
1,859,132 6,889,689
1,736,958 6,889,689
1,613,185 6,889,689
214 150
214 150
214 150
214 150
214 150
214 150
214 150
214 150
214 150
214 150
195 171 18
196 172 18
196 173 18
196 174 18
197 174 18
197 174 18
197 174 18
197 175 18
197 175 18
197 175 18
308 2,758 14.41
330 2,928 13.75
333 2,979 13.75
359 3,193 13.75
360 3,205 13.75
384 3,240 13.75
385 3,254 13.75
398 3,273 13.75
400 3,309 13.75
402 3,336 13.75
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
28.8 19.2 48.0
NA - Information not available (a) In FY01/02 an additional 9-holes were added to the 27-hole course to create two 18-hole courses. (b) A new 3-sheet arena on Fast Ice Drive opened in September 2005 replacing the old 2-sheet arena on East Collins. (c) In FY05/06 a new 2,100 sq ft terminal building opened replacing a 1,200 sq ft terminal built in 1950. (d) Current airspace = remaining airspace in currently constructed cells. (e) Total future airspace = remaining airspace in currently constructed cells as well as cells to be constructed in the future. (f) Raw water is pumped from Lake Huron by the Saginaw-Midland Municipal Water Supply Corporation, a facility owned jointly by the two cities. The raw water is then pumped to the two communities for treatment at their individual treatment plants. (g) FY07/08 Cell 16 added, roughly 1.8 million yards of additional airspace (h) 2010 airspace remaining value is higher than 2009 for two reasons: 1. 2010 had an acutal survey completed, while 2009 was a calculated estimate. 2. A minor modification to Cell 16 design increased the available airspace by 56,947 compacted cubic yards. (i) 2014 one sheet of ice arena was converted to turf. (j) 2015 Thrune Park renovation included the addition of a Splash Pad Sources: City records, city departments, department annual reports, and city website - www.midland-mi.org
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January 15, 2016
Management and the City Council City of Midland Midland, MI We have completed our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of City of Midland as of and for the year ended June 30, 2015, and have issued our report dated January 15, 2016. We are required to communicate certain matters to you in accordance with auditing standards generally accepted in the United States of America that are related to internal control and the audit. The following appendices to this letter sets forth those communications as follows: I.
Auditors’ Communication of Significant Matters with Those Charged with Governance
In addition, we have identified additional matters that are not required to be communicated but we believe are valuable for management: II. Matters for Management’s Consideration We discussed these matters with various personnel in the City during the audit and have already met with management. We would also be pleased to meet with you to discuss these matters at your convenience. These communications are intended solely for the information and use of management, the City Council, and others within the City, and are not intended to be and should not be used by anyone other than those specified parties.
Saginaw, Michigan
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Appendix I Auditors’ Communication of Significant Matters with Those Charged with Governance Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards and OMB Circular A-133 as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter dated May 18, 2015. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the financial statements. The Government has adopted Governmental Accounting Standards Board Statements (GASBS) No. 68 Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, and No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68. Both statements are effective July 1, 2014. Statement No. 68 provides guidance to improve accounting and financial reporting by state and local governments for pensions. Statement No. 71 addresses the application of the transition provisions of Statement No. 68. We noted no transactions entered into by the City during the year where there is lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting City of Midland’s financial statements were: Estimate
Management’s basis
Incurred but not reported health benefits
Historical claims and information provided by third party provider.
Other post employment benefits
Information provided by actuarial valuation report.
Landfill closure and postclosure costs
Based on landfill capacity to date and estimated costs set forth by the State and Federal governments.
Compensated absences
Based on accumulated vacation and sick days and salary and wage rates in effect.
Useful lives of capital assets
Based on length of time management believes those assets will provide some economic benefit in the future.
Net pension liability and the related deferred outflows of resources
Information provided by actuarial valuation report
We feel the estimates have been properly recorded and evaluated by management. Disclosures in the financial statements are neutral, consistent and clear.
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Accounting Standards and Regulatory Updates Accounting Standards The Governmental Accounting Standards Board (“The GASB”) has issued Statement 72, Fair Value Measurements and Applications. Statement 72 addresses accounting and financial reporting issues related to fair value measurements. Fair value is defined as an exit price (what a government would get to sell the asset), and fair value measurements primarily apply to investments. The statement enhances fair value application guidance and related disclosures in order to provide information to financial statement users about the impact of fair value measurements on a government’s financial positon. This statement requires additional disclosures about fair value measurements, the level of fair value hierarchy, and valuation techniques. Statements 72 is effective for the year ending June 30, 2016, although earlier application is allowed. Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statement 67 and 68. The purpose of this Statement is provide the readers of the financial statements information about the effects of the pension-related transactions on the financial statements of state and local government employers. It will assist in assessing the relationship between a government’s inflows of resources and its total cost (including pension expense) of providing government services each period in addition to providing information about the government’s pension obligation. The first objective of this Statement is to improve the information about financial support provided by certain nonemployer entities for pensions that are provided to the employees of other entities that are not within the scope of Statement No. 68. These requirements are effective for the fiscal year ending June 30, 2017. The second objective is to improve the quality of information associated with governments that hold assets accumulated for purposes of providing defined benefit pensions that are not within the scope of Statement 68 and the third objective is to clarify the application of certain provisions of Statement No. 67 and 68. These two requirements are effective for the fiscal year ending June 30, 2016. Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans addresses the other postemployment benefits plans (OPEB) – defined benefit and defined contribution – administered through trusts. This Statement will improve the financial reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by OPEB plans that are administered through trusts. This information will enhance the transparency by providing information about measures of net OPEB liabilities and explanations of how and why those liabilities changed from year to year. Statement No. 74 is effective for the fiscal year ending June 30, 2017. Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined OPEB plans, this Statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee services. It also requires additional note disclosures and required supplementary information. Statement No. 75 is effective for the fiscal year ending June 30, 2018. The City is evaluating the impact GASB’s 72 through 75 will have on its financial reporting. Uniform Grant Guidance (Super Circular) In December 2013 the Federal Office of Management and Budget (OMB) issued final guidance on administrative requirements. The Guidance supersedes and streamlines requirements from OMB Circulars A-21, A-87, A-110, A-122, A-89, A-102 and A-133 and the guidance in Circular A-50 on Single Audit Act follow-up. Governments will need to implement the new administrative requirements and Cost
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Principles for all new federal grants awarded after December 26, 2014, and to additional funding to existing awards (referred to as funding increments) made after that date. Highlights of the Super Circular:
Raises the single audit threshold from $500,000 to $750,000 (federal expenditures during the June 30, 2016 yearend) Increases monitoring and risk assessment necessary by federal program offices Focuses heavily on internal controls and polices/procedures, which should be in compliance with COSO (Committee of Sponsoring Organizations of the Treadway Commissions) Additional monitoring by pass-through agencies of sub recipients New rules for procurement/property management Cost principles are more principles based, with intention to reduce administrative burden
Additional information and resources are available at the following websites:
OMB http://www.whitehouse.gov/omb/grants_docs Council on Federal Assistance Reform (COFAR) https://cfo.gov/cofar/
Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require that the auditor accumulate all known and likely misstatements identified during the audit, other than those the auditor believes to be trivial. The adjustments identified during the audit have been communicated to management and management has posted all but a passed adjustment in prior year for the incurred but not reported (IBNR) health benefits liability that was deemed to be over accrued. The net effect of this in the current year was an understatement of expenses and overstatement of the change in net position by $215,000 in the internal service funds and governmental activities. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Management has determined that the effect of the uncorrected misstatement noted above is immaterial both individually and in the aggregate, qualitatively and quantitatively, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditors’ report. We are pleased to report we had no disagreements with management during the audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated as of the date of the audit report.
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Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. The City has an accumulated unassigned deficit in the Civic Arena Fund and Currie Municipal Golf Course Fund, which we believed to be important information for the users of the financial statements. Our report will therefore include the following emphasis of matter paragraph: Deficit Fund Balance The organization has an accumulated unassigned deficit in the Civic Arena Fund of $216,416 and Currie Municipal Golf Course Fund of $687,533 as of June 30, 2015, which has resulted from operating deficits. The deficit and status of the organization’s Deficit Elimination Plan that is required by the Michigan Department of Treasury, are disclosed in Note 2. Our opinions are not modified with respect to this matter. The City adopted a new accounting standard, and our report will include the following emphasis of matter paragraph: Adoption of New Accounting Standard As described in Note 1 to the financial statements, during the year ended June 30, 2015, the Government adopted GASB Statement No. 68 and GASB Statement No. 71, Accounting and Financial Reporting for Pensions and Pension Transition for Contributions Made Subsequent to the Measurement Date, respectively. Our opinions are not modified with respect to this matter. The City had a change from previously issued financial statements, and our report will include the following emphasis of a matter paragraph: Change from Previously Issued Financial Statements As described in Note 20 to the financial statements, the City identified an error in the Net Investment in Capital assets amount for governmental activities reported in the previously issued financial statements, dated December 16, 2015. Our opinion is not modified with respect to this matter. Other Reports Other information that is required to be reported to you is included in the: 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; Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133; and the Schedule of Findings and Questioned Costs. Please read all information included in those reports to ensure you are aware of relevant information.
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Report on Required Supplementary Information With respect to the required supplementary information accompanying the financial statements, which includes management’s discussion and analysis and budgetary comparison information, we 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. Report on Other Information With respect to the supplementary information accompanying the financial statements, other than list of List of Principal Officials, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. The Government’s audited financial statements are included in their comprehensive annual financial report. Our responsibility for the other information contained in the comprehensive annual financial report does not extend beyond the financial information identified in our audit report. We do not have an obligation to perform any procedures to corroborate the other information contained in the introductory section and statistical section. However, we read the other information and considered whether such information, or the manner of its presentation, was materially inconsistent with information, or the manner of its presentation, appearing in the financial statements. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, was materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
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Appendix II Matters for Management’s Consideration In planning and performing our audit of the financial statements of City of Midland as of and for the year ended June 30, 2015, we considered City of Midland’s internal control over financial reporting (internal control) as a basis for designing our audit procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. However, during our audit we became aware of a matter for management’s consideration that is an opportunity for strengthening internal controls. This letter does not affect our report dated January 15, 2016, on the financial statements of City of Midland. Our comment and recommendation regarding this matter is: Inventory Adjustments The City uses perpetual inventory systems to track inventory levels consistently throughout the year. Near year end, the City does physical inventory counts which it then uses to adjust inventory account balances to actual. Inventory balances should be similar to that noted in the perpetual system. We noted that large adjustments were required at year end for some of the inventory accounts in order to get the inventory to match the physical count. We recommend inventory be regularly tracked and monitored throughout the year and internal control procedures be reviewed to avoid large adjustments at year end. In some instances, the use of additional physical counts during the year may also help ensure the perpetual system is accurately tracking inventory amounts. This will help produce accurate inventory balances throughout the year and pinpoint any inventory tracking issues the City may have.
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City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
TO:
Jon Lynch, City Manager
FM:
David A. Keenan, Assistant City Manager
DT:
January 20, 2016
RE:
Auditor’s Matter for Management Consideration
During the financial audit for the year ended June 30, 2015, the auditors have provided a comment on certain areas of operations as found in Appendix II of the Governance Letter dated January 15, 2016. I provide the following responses to the auditor comments. Inventory Adjustments The City has several operations that maintain inventory, and have for many years. A few of these areas required larger than acceptable year-end inventory adjustments to bring the general ledger into agreement with the perpetual inventory records. We will revisit each of these locations and determine the factors which caused the variances. By applying a cost-benefit analysis we will implement those changes that are financially feasible and promote the desired outcome.
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City of Midland, Michigan Single Audit Report June 30, 2015
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CONTENTS Page 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
1
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 OMB Circular A-133
3
Schedule of Expenditures of Federal Awards
6
Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards
8
Notes to the Schedule of Expenditures of Federal Awards
9
Schedule of Expenditures of Federal Awards Provided to Subrecipients
10
Schedule of Findings and Questioned Costs
11
Summary Schedule of Prior Audit Findings
13
Supplementary Information - Transportation Fund (Dial-A-Ride) Schedule 1 - Schedule of Local Revenues
14
Schedule 1A - Schedule of Local Revenues
15
Schedule 2 - Expenditures of Federal and State Awards
16
Schedule 2A - Federal and State Awards Operating Revenue Only
17
Schedule 2B - Federal and State Awards Operating Revenue Only
18
Schedule 3A – Operating Expenses Split Between a June 30 and September 30 Year End
19
Schedule 3B – Operating Expenses Split Between a June 30 and September 30 Year End
20
Schedule 4E - Nonurban Regular Service Expense Report
22
Schedule 4R - Nonurban Regular Service Revenue Report
23
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CONTENTS Page
Schedule 4N - Nonurban Regular Service Nonfinancial Report (Unaudited)
24
Schedule 5 - Operating Assistance Calculation
25
Schedule 6 - Comments and Recommendations
26
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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 Independent Auditors’ Report Management and City Council City of Midland, 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, each major fund, and the aggregate remaining fund information of City of Midland, Michigan as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise City of Midland, Michigan’s basic financial statements, and have issued our report thereon dated January 15, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City of Midland, Michigan's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Midland, Michigan’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Midland, Michigan’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 may exist that have not been identified.
1
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Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Midland, Michigan'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 determination of financial statement amounts. 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. 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.
Saginaw, Michigan January 15, 2016
2
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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 OMB Circular A-133 Independent Auditors’ Report Management and City Council City of Midland, Michigan Report on Compliance for Each Major Federal Program We have audited City of Midland, Michigan’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of City of Midland’s major federal programs for the year ended June 30, 2015. City of Midland, Michigan’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of City of Midland, Michigan’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Midland, Michigan’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of City of Midland, Michigan’s compliance.
3
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Unmodified Opinion on the Major Federal Programs In our opinion, City of Midland, Michigan complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs for the year ended June 30, 2015. Report on Internal Control Over Compliance Management of City of Midland, Michigan is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of Midland, Michigan’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Midland, Michigan’s internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies. 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 combination of deficiencies, in internal control over compliance, such that there is 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. 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 OMB Circular A133. Accordingly, this report is not suitable for any other purpose.
4
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Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 and Transportation Fund (Dial-A-Ride) We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Midland, Michigan as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise City of Midland, Michigan’s basic financial statements. We issued our report thereon dated January 15, 2016, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards required by OMB Circular A-133 and Transportation Fund (Dial-A-Ride) Schedules 1, 1A, 2, 2A, 2B, 3A, 3B, 4E, 4R, 4N, 5, and 6 required by the Michigan Department of Transportation 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 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 schedule of expenditure of federal awards and Transportation Fund (Dial-A-Ride) Schedules 1, 1A, 2, 2A, 2B, 3A, 3B, 4E, 4R, 4N, 5, and 6 are fairly stated in all material respects in relation to the basic financial statements as a whole. The Transportation Fund (Dial-A-Ride) unaudited Schedule 4N has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion of provide any assurance on it.
Saginaw, Michigan January 15, 2016
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City of Midland, Michigan
Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2015
Federal Agency/Pass-through Agency/Program Title U.S. Department of Housing and Urban Development Community Development Block Grant B-12-MC-26-0037 B-13-MC-26-0037 B-14-MC-26-0037
CFDA Number
Award Amount
14.218
$ 215,226 226,754 209,553
U.S. Department of Transportation Federal Transit Cluster Direct Operating Assistance - Section 5307 (FY 2014) MI-90-X685-00 Capital Assistance - Section 5307 (FY 2014) MI-90-X685-00 Operating Assistance - Section 5307 (FY 2015) MI-90-X703-00
$
34,533 226,754 26,226 287,513
Total U.S. Department of Housing and Urban Development U.S. Department of Justice Bulletproof Vest Partnership Program 2013 Grant
Federal Expenditures
16.607
6,112
5,195
601,349
305,395
354,055
41,420
541,066
118,597
20.507
465,412 Capital Assistance - Section 5339 12-0134/P5 (80/20) MI-34-0003-01 (2013) 12-0134/P7 (80/20) MI-34-0003-02 (2014) 12-0134/P9 (80/20) MI-34-0003-03 (2015) Capital Assistance - Section 5309 12-0134/P3 (80/20) MI-34-0003-0x (2012)
20.526
65,812 66,965 66,968
56,933 66,965 1,959
116,835
5,861 131,718 597,130
Total Federal Transit Cluster Passed through Michigan Department of Transportation Highway Planning and Construction Agreement 2013-5499 Agreement 2014-5192 Agreement 2014-5213
20.205
1,093,600 471,127 114,376
739,029 461,090 114,376 1,314,495
See Accompanying Notes to the Schedule of Expenditures of Federal Awards 6
Receiving and fi... - 169 of 189
City of Midland, Michigan
Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2015
Federal Agency/Pass-through Agency/Program Title Passed through Michigan Department of Transportation via the Midland Area Transportation Study (MPO) Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research Planning Assistance - Section 5303 (FY 2014) Planning Assistance - Section 5303 (FY 2015) Planning Assistance - FHWA PL (FY 2014) Planning Assistance - FHWA PL (FY 2015)
CFDA Number
20.505
Award Amount
$
20,748 37,859 68,931 59,210
Federal Expenditures
$
2,596 32,284 6,404 1,100 42,384 1,954,009
Total U.S. Department of Transportation Federal Emergency Management Authority FY 2013 Flood Mitigation Assistance Grant Program Passed through Michigan State Police - Emergency Management and Homeland Security Division 97.029 FMA-PF-05-MI-2013-003
1,029,693
Total federal awards
See Accompanying Notes to the Schedule of Expenditures of Federal Awards 7
555,963 $ 2,802,680
Receiving and fi... - 170 of 189
City of Midland, Michigan
Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2015
Revenue per Schedule of Expenditures of Federal Awards
$
Prior year grants
2,802,680 3,190
Deferred revenue - unavailable
(975)
District wide revenue for projects
(1,314,495)
Prior year unavailable district wide deferred revenue recognized
300,473 $
Total federal expenditures - adjusted
8
1,790,873
Receiving and fi... - 171 of 189
City of Midland, Michigan
Notes to the Schedule of Expenditures of Federal Awards June 30, 2015 Note 1 - Significant Accounting Policies The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Midland, Michigan and is presented on the same basis of accounting as the basic financial statements. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
9
Receiving and fi... - 172 of 189
City of Midland, Michigan
Schedule of Expenditures of Federal Awards Provided to Subrecipients For the Year Ended June 30, 2015 Award Amount
Subrecipient Name Midland Area Homes Midland County Habitat for Humanity Safe & Sound Child Advocacy Shelterhouse Caregiving Network Washington Woods Windover High School Legacy Center for Community Success Reece Endeavor of Midland Legal Services of Eastern Michigan West Midland Family Center Ten16 Recovery Network Cleveland Manor
10
Subrecipient Expenditures
$
12,000 20,000 30,000 74,382 12,000 89,233 60,000 4,000 2,997 3,500 10,000 10,000 5,000
$
12,000 18,634 30,000 36,554 72,994 60,000 4,000 2,997 3,500 10,000 10,000 3,745
$
333,112
$
264,424
Receiving and fi... - 173 of 189
City of Midland, Michigan
Summary Schedule of Findings and Questioned Costs June 30, 2015 Section I - Summary of Auditors’ Results Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting:
Material weakness(es) identified?
______ yes
X
no
Significant deficiency(s) identified that are not considered to be material weaknesses?
yes
X
none reported
______ yes
X
no
______ yes
X
no
yes
X
none reported
X
no
Noncompliance material to financial statements noted? Federal Awards Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(s) identified that are not considered to be material weakness(es)?
Type of auditors’ report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133?
_ ___ yes
Identification of major programs: CFDA Number(s)
Name of Federal Program or Cluster
20.205 97.029
Highway Planning and Construction Flood Mitigation Assistance
Dollar threshold used to distinguish between type A and type B programs:
$ 300,000
Auditee qualified as low-risk auditee?
X
11
yes
no
Receiving and fi... - 174 of 189
City of Midland, Michigan
Summary Schedule of Findings and Questioned Costs June 30, 2015 SECTION II – Government Auditing Standards Findings There were no findings related to the financial statements which are required to be reported in accordance with generally accepted government auditing standards for the year ended June 30, 2015. SECTION III – Federal Award Findings There were no findings or questioned costs for Federal Awards for the year ended June 30, 2015.
12
Receiving and fi... - 175 of 189
City of Midland, Michigan Summary Schedule of Prior Audit Findings June 30, 2015
SECTION IV – PRIOR AUDIT FINDINGS Government Auditing Standards Findings There were no findings under Government Auditing Standards for the year ended June 30, 2014. Federal Award Findings There were no findings or questioned costs for Federal Awards for the year ended June 30, 2014.
13
Receiving and fi... - 176 of 189
Supplementary Information Transportation Fund (Dial-A-Ride)
Receiving and fi... - 177 of 189
City of Midland, Michigan Schedule 1 Transportation Fund (Dial-A-Ride) Schedule of Local Revenues For The Year Ended June 30, 2015 July 1, 2014 to September 30, 2014
Customer fares Contractual Other local contracts/reimbursements Refunds and credits Interest income Total
October 1, 2014 to June 30, 2015
Totals
$
19,494 1,665 649 26
$
65,617 12,578 8,071 361 -
$
85,111 14,243 8,720 361 26
$
21,834
$
86,627
$
108,461
14
City of Midland, Michigan
Receiving and fi... - 178 of 189
Schedule 1A Transportation Fund (Dial-A-Ride) Schedule of Local Revenues Based on September 30, 2014 Year End October 1, 2013 to June 30, 2014 Customer fares Contractual Other local contracts/reimbursements Interest income Sale of equipment Total
July 1, 2014 to September 30, 2014
Totals
$
64,747 21,035 7,474
$
19,494 1,665 649 26 -
$
84,241 22,700 649 26 7,474
$
93,256
$
21,834
$
115,090
Other local contracts/reimbursements, interest income, and sale of equipment were not included on local revenues schedule on 6/30/14 Supplementary Information Transportation Fund (Dial-A-Ride).
15
City of Midland, Michigan
Receiving and fi... - 179 of 189
Schedule 2 Transportation Fund (Dial-A-Ride) Expenditures of Federal and State Awards For The Year Ended June 30, 2015 Federal CFDA Number
Grant No./ Authorization Number
20.507 20.507 20.507
MI-90-X685 MI-90-X703 MI-90-X685
Passed through Michigan Department of Transportation Federal Transit Capital Grants Capital Grant--Section 5339 (80/20) Capital Grant--Section 5339 (80/20) Capital Grant--Section 5339 (80/20) Capital Grant--Section 5309 (80/20)
20.526 20.526 20.526 20.500
2012-0134/P5/R1 2012-0134/P7 2012-0134/P9 2012-0134/P3
Passed through Michigan Department of Transportation via the Midland Area Transportation Study Planning Assistance - Section 5303 (FY 2014) Planning Assistance - Section 5303 (FY 2015)
20.505 20.505
Grantor/Program Title U.S. Department of Transportation Direct Assistance Federal Transit Operating Grant--Section 5307 Federal Transit Operating Grant--Section 5307 Capital Assistance - Section 5307 (80/20)
Total U.S. Department of Transportation
Award Amount
$
601,349 541,066 354,055
Total
$
Current Year's Expenditures Federal State
305,395 118,597 51,775
$
305,395 118,597 41,420
$
10,355
11,098 81,261 5,952
20,748 37,859
2,596 32,284
2,596 32,284
-
18,027 -
-
125 5,575
1,950,801
675,294
632,010
43,284
446,747
-
828,760
485,225 40,578
-
61,074 -
-
178,995
Operating Assistance - Act 51 - FY 2015
N/A
674,161
495,166
-
495,166
20.526 20.526
2012-0134/P7 2012-0134/P5/R1
422,469 302,280
-
162,895 -
Earned but not received Capital Grant--Section 5339 (80/20) Capital Grant--Section 5339 (80/20)
$
132,766
-
MI-90-X685 MI-90-X703 MI-90-X685
-
14,233 16,741 490 1,465
162,895 -
20.507 20.507 20.507 20.505 20.505
$
295,954 -
56,933 66,965 1,959 5,861
709,194 40,578
Not passed through the State of Michigan Federal Transit Operating Grant--Section 5307 Federal Transit Operating Grant--Section 5307 Capital Assistance - Section 5307 (80/20) Planning Assistance - Section 5303 (FY 2014) Planning Assistance - Section 5303 (FY 2015)
$
Award Amount Remaining
71,166 83,706 2,449 7,326
N/A
Total
Excess Eligible Expenditures
82,264 83,706 83,710 146,044
Michigan Department of Transportation Operating Assistance - Act 51 - FY 2014 Adjust PY reported for award adjustments
Total Michigan Department of Transportation
Prior Years' Expenditures
1,423,933
658,061
$ 3,374,734
$ 1,333,355
$
632,010
$
701,345
$
$
(305,395) (118,597) (41,420) (2,596) (32,284)
$
(10,355) -
(305,395) (118,597) (51,775) (2,596) (32,284)
-
658,061
(71,774) (2,448)
(57,419) (1,958)
(14,355) (490)
Received but not earned Operating Assistance - Act 51 - FY 2014 Operating Assistance - Act 51 - FY 2015
33,738 10,288
-
33,738 10,288
Current year receipts (payback) of prior year expenses Operating Assistance - Act 51 - FY 2012 Operating Assistance - Act 51 - FY 2013
12,873 (5,125)
-
12,873 (5,125)
MDOT OPT Record of Payments
$
16
800,260
$
72,341
-
$
727,919
525,803 $
972,550
$
-
240,069
-
$ 1,068,829
Receiving and fi... - 180 of 189
City of Midland, Michigan Schedule 2A Transportation Fund (Dial-A-Ride) Federal and State Awards Operating Revenue Only For Year Ended June 30, 2015 July 1, 2014 to September 30, 2014
Michigan Department of Transportation Local Bus Operating (Act 51) Adjust prior year reported for award adjustments
$
Total Michigan Department of Transportation Federal Transit Administration Section 5307 Passed through Michigan Department of Transportation via the Midland Area Transportation Study Planning Assistance - Section 5303 Total
162,895 40,578
October 1, 2014 to June 30, 2015
$
495,166 -
Totals
$
658,061 40,578
203,473
495,166
698,639
67,450
356,542
423,992
2,596
32,284
34,880
$
273,519
$
883,992
$
1,157,511
$
203,473 -
$
495,166 10,355 31,464 1,465
$
698,639 10,355 31,464 1,465
$
203,473
$
538,450
Revenue reconciliation to financial statements below State grants State revenues from above Section 5307 capital assistance match Section 5339 capital assistance match Section 5309 capital assistance match Subtotal - state grants Not received within 60 days of year-end - deferred Prior year grants received during fiscal year
(450)
Total financials statements state revenue Federal grants Federal revenues from above Section 5307 capital assistance Section 5339 capital assistance Section 5309 capital assistance Subtotal - federal grants
741,923
$
70,046 -
$
388,826 41,420 125,857 5,861
$
70,046
$
561,964
Not received within 60 days of year-end - deferred Prior year section 5307 deferred - received in current year Prior year section 5303 deferred - received in current year Prior year grants received during fiscal year
(450) 20,982 $
762,455
$
458,872 41,420 125,857 5,861 632,010
`
Total financials statements federal revenue
(1,958) 295,954 6,478 3,079 $
17
935,563
Receiving and fi... - 181 of 189
City of Midland, Michigan
Schedule 2B Transportation Fund (Dial-A-Ride) Federal and State Awards Operating Revenue Only Operating Revenue Only Based on a September 30, 2014 Year End
October 1, 2013 to June 30, 2014 Michigan Department of Transportation Local Bus Operating (Act 51) Adjust prior year reported for award adjustments
$
485,225 -
U.S. Department of Transportation Operating Assistance - Section 5307 Planning Assistance - Section 5303 (FY 2013)
Total
$
$
162,895 40,578
Totals
$
648,120 40,578
485,225
203,473
688,698
295,954 18,027
67,450 2,596
363,404 20,623
313,981
70,046
384,027
799,206
18
July 1, 2014 to September 30, 2014
$
273,519
$
1,072,725
Receiving and fi... - 182 of 189
City of Midland, Michigan
Schedule 3A Transportation Fund (Dial-A-Ride) Operating Expenses Split Between a June 30 and September 30 Year End For the Year Ended June 30, 2015
July 1, 2014 to September 30, 2014 Labor Fringe benefits Services Materials and supplies Utilities Insurance Purchased service Miscellaneous Operating leases Total financial statement expenses
Totals
$
222,728 86,609 79,913 41,125 171 4,179 713 4,423
$
686,500 323,014 235,308 96,429 496 12,539 980 13,154 13,764
$
909,228 409,623 315,221 137,554 667 16,718 980 13,867 18,187
$
439,861
$
1,382,184
$
1,822,045
Depreciation expense Total OAR expenses
October 1, 2014 to June 30, 2015
$
439,861
19
125,578 $
1,507,762
125,578 $
1,947,623
Receiving and fi... - 183 of 189
City of Midland, Michigan
Schedule 3B Transportation Fund (Dial-A-Ride) Operating Expenses Split Between a June 30 and September 30 Year End For the Year Ended June 30, 2015 Based on a September 30, 2014 Year End October 1, 2013 to June 30, 2014 Labor Fringe benefits Services Materials and supplies Utilities Insurance Purchased service Miscellaneous Operating leases Depreciation Total expenses
(1)
July 1, 2014 to September 30, 2014
Totals
$
659,690 296,038 212,606 130,173 516 12,926 3,279 1,343 21,112 133,612
$
222,728 86,609 79,913 41,125 171 4,179 713 4,423 -
$
882,418 382,647 292,519 171,298 687 17,105 3,279 2,056 25,535 133,612
$
1,471,295
$
439,861
$
1,911,156
(2)
(1) On FY 2014 Supplementary Information Transportation Fund (Dial-A-Ride), this was net of Other Ineligible Federal/State/Local, now included here and subtracted as ineligible on Schedule 4E and Schedule 5 (2) On FY 2014 Supplementary Information Transportation Fund (Dial-A-Ride), this was shown net of ineligible bad debt expense, now included here and subtracted as ineligible on Schedule 4E and Schedule 5 No costs for the purchase of transportation vehicles funded by federal and state grants, nor any depreciation related thereto are included as eligible expenses on these schedules. Further, capital grants were only used for capital purchases. No operating expenses were paid with capital grants. Certain costs for rent, vehicle storage rent, and administration included in these schedules, as well as the City's financial statements, are allocated in accordance with plans on file with the Office of Passenger Transportation (OPT). All other costs are charged directly. The Transportation Fund is a Special Revenue Fund on the financial statements, so no depreciation is reported at the fundbased level. Depreciation is calculated and maintained for the government-wide statements in accordance with GASB 34. Depreciation expense included as eligible only includes assets purchased with local funds where the useful life of the asset has been approved by OPT.
20
City of Midland, Michigan
Receiving and fi... - 184 of 189
Schedule 3B Transportation Fund (Dial-A-Ride) Operating Expenses Split Between a June 30 and September 30 Year End For the Year Ended June 30, 2015
Pension and OPEB Obligations Based on a September 30, 2014 Year End
October 1, 2013 to June 30, 2014 Annual required contribution for OPEB
$
53,409
Amounts contributed: Payments of current premiums
July 1, 2014 to September 30, 2014 $
16,691
Totals $
70,100
53,409
16,691
70,100
Increase (decrease) in net OPEB obligation
-
-
-
OPEB obligation - beginning of year
-
-
-
OPEB obligation - end of year
$
-
October 1, 2013 to June 30, 2014 Annual required contribution for pension
$
88,493
Amounts contributed: Payments of current premiums
$
-
$
July 1, 2014 to September 30, 2014 $
30,081
-
Totals $
118,574
88,493
30,081
Increase (decrease) in net pension obligation
-
-
-
Pension obligation - beginning of year
-
-
-
Pension obligation - end of year
$
-
21
$
-
118,574
$
-
Receiving and fi... - 185 of 189
Code 501: 50101 50102 50103 502: 50200 50201 50202 503: 50302 50305 50399 504: 50401 50499 505: 50500 506: 50603 509: 50902 50999 512: 51200 513: 51300 550: 55007 55008 570: 57099 576: 57603
City of Midland, Michigan Schedule 4E Transportation Fund (Dial-A-Ride) Nonurban Regular Service Expense Report For the Year Ended September 30, 2014
Description Labor Operators' salaries and wages Other salaries and wages Dispatchers' salaries and wages Fringe benefits Fringe benefits - other Fringe benefits - pension Fringe benefits - other post employment benefits Services Advertising fees Audit fees Other Material and supplies Fuel and lubricants Other materials and supplies Utilities Utilities - telephone Insurance Liability insurance Miscellaneous expenses Travel, meetings and training Other misc. expenses (bad debt) Operating leases and rentals Operating leases and rentals Depreciation Depreciation Ineligible expenses Ineligible depreciation Other ineligible expenses (bad debt expense) Ineligible expenses Other ineligible federal/state/local (Section 5303 expenses) Ineligible expenses Ineligible admin expense paid by capital contract
Operations $
$
159,564 87,538 54,261
22
$
138,939
85,715 -
Total $
695,150 85,715 101,553
40,845 24,600 15,839
200,409 112,138 70,100
3,279 2,700 150,880
3,279 2,700 289,819
162,426 8,872
-
-
162,426 8,872
687
-
-
687
17,105
-
-
17,105
2,042 -
-
-
25,535
-
-
25,535
133,612
-
-
133,612
133,274 -
-
15
133,274 15
-
-
25,780
25,780
-
-
1,314
1,314
323,873 27,109
1,911,157 160,383
1,448,345 133,274 $
-
General & Administration
-
-
Total expenses Total ineligible expenses Total eligible expenses
695,150 101,553
Maintenance
1,315,071
138,939 $
138,939
2,042 15
15
$
296,764
$
1,750,774
Receiving and fi... - 186 of 189
City of Midland, Michigan Schedule 4R Transportation Fund (Dial-A-Ride) Nonurban Regular Service Revenue Report Based on a September 30, 2014 Year End
Code 401: 40100 40200 407: 40760 409: 40910 40999 411: 41101 41113 413: 41302 41313 41399 414: 41400
Description Farebox revenue Customer fares Contractual NonTrans revenue Gains from sale of capital assets Local revenue Local operating assistance Other local contracts/reimbursements State formula and contracts State operating assistance (with revised %) Capital contract reimbursement for admin expenses Federal contracts Federal Section 5307 operating (operating funds only) Capital contract reimbursement for admin expenses Other Federal transit contracts and reimbursements Other revenue Interest income
Total revenues
Amount $
84,241 22,700 7,474 562,293 649 688,054 263 363,400 1,051 20,623 26
$
1,750,774
Any eligible expenses associated with the Federal and State Capital Contract Reimbursement for Administrative Expenses Federal and State revenues have been properly subtracted from total expenses as ineligible under PTMS code 57603 Ineligible Administrative Expense Paid by Capital Contract. Any eligible expenses associated with Gains from Sales of Capital Assets do not need to be subtracted out as ineligible as they were minimal in nature and not charged to Dial-A-Ride as an expense.
23
Receiving and fi... - 187 of 189
City of Midland, Michigan
Schedule 4N Nonurban Regular Service Nonfinancial Report (Unaudited) For The Year Ended September 30, 2014
Public Service Code 610 611 615 616 617 618 622 625
Description Vehicle hours Vehicle miles Passengers - regular Passengers - elderly Passengers - persons with disabilities Passengers - elderly persons with disabilities Total demand response passengers Days operated
Weekday 25,758 412,849 26,628 6,400 54,672 12,081 99,781 255
Saturday 1,757 27,964 1,429 644 2,197 1,139 5,409 52
Total 27,515 440,813 28,057 7,044 56,869 13,220 105,190 307
Vehicle Information Code 655 656 658
Description Total demand response vehicles Demand response vehicles with lifts Total transit vehicles
Quantity 14 14 14
Miscellaneous Information Code 660 661
Description Diesel/gasoline gallons consumed Total Transit Agency Employees (Full-Time Equivalents)
The methodology used for compiling this data has been reviewed and the recording method has been found to be adequate and reliable.
24
Quantity 50,131 30
Receiving and fi... - 188 of 189
City of Midland, Michigan Schedule 5 Transportation Fund (Dial-A-Ride) Operating Assistance Calculation Based on a September 30, 2014 Year End
Nonurban Total expenses Less ineligible expenses Depreciation Bad debt expense Section 5303 expenses Admin expense paid by capital contract Total ineligible expenses per R & E manual Total state eligible expenses
$
1,911,157
$
133,274 15 25,780 1,314
$
160,383
$
1,750,774
x reimbursement percentage
39.3000%
State operating assistance
$
688,054
Federal Section 5307 operating assistance
$
363,400
25
Receiving and fi... - 189 of 189
City of Midland, Michigan Schedule 6 Transportation Fund (Dial-A-Ride) Comments and Recommendations Year Ended June 30, 2015
There are no comments and recommendations for the year ended June 30, 2015.
26
Attached documents for item Receiving a Payment in Lieu of Taxes request from Lockwood Development and referring said request to the Housing Commission for study and recommendation. KEENAN
Receiving a Paym... - 1 of 73
SUMMARY REPORT TO MANAGER For City Council Meeting of January 25, 2016 SUBJECT: Receiving a Payment In Lieu of Taxes (PILOT) request from Lockwood Development and referring said request to the Housing Commission for study and recommendation. INITIATED BY: David A. Keenan, Assistant City Manager RESOLUTION SUMMARY: This resolution would receive the PILOT request from Lockwood Development and refer said request to the Housing Commission for study and recommendation.
ITEMS ATTACHED: 1. 2. 3. 4. 5.
Letter of Transmittal Resolution PILOT request letter Requestor capital needs assessment Lockwood Development information
CITY COUNCIL ACTION: 3/5 affirmative vote required for adoption
_____________________________________ David A. Keenan, Assistant City Manager
Receiving a Paym... - 2 of 73
City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
TO:
Jon Lynch, City Manager
FM:
David A. Keenan, Assistant City Manager
DT:
January 20, 2016
RE:
Bracken Woods PILOT request acceptance and referral
The City has received a request for a “payment in lieu of taxes” exemption, or PILOT, for the property known as Bracken Woods Apartments. The PILOT request is to facilitate the purchase and rehabilitate the property known as Bracken Woods Apartments. WHAT IS A PILOT The State of Michigan often provides tax incentives to motivate investors to invest in areas of need that are not being met by the open market. Examples that the City encounters include Industrial Facilities Tax Exemptions and Renaissance Zone Exemptions offered to stimulate investment in manufacturing and other related activities. Brownfields are offered to facilitate the cleanup of blight and contaminated areas. Payment In Lieu of Taxes, or PILOT provides tax incentives to developers to provide affordable housing to those who are elderly or of low or moderate income. HOW A PILOT WORKS Once approved by the Michigan State Housing Development Authority and City Council, the property associated with a PILOT is removed from the tax roll and becomes exempt from paying property taxes. Instead, it pays an annual fee that is based on this formula: (Rent capacity + actual carport rental – actual vacancies – eligible utility costs) x the PILOT rate
The PILOT rate is a fixed rate between 4% and 11% and generates a fee that is significantly lower than the normal tax burden of paying property taxes, thus reducing operating costs. This reduction in operating costs is one component that allows the housing project to pass savings on to the tenants in the form of reduced rent, thus servicing lower income folks. The developer pays the PILOT fee once a year and it is distributed by the City to all taxing jurisdictions on a pro-rata basis, based on the combined millages at that time. This is illustrated later in this report.
Receiving a Paym... - 3 of 73
HOW MANY PILOTS DOES THE CITY HAVE? From 1979 through 2009 City Council has approved 19 PILOTs for a total of 521 units. Year Adopted 1979 1979 1995 1998 1998 2001 2001 2002 2002 2003 2007 2007 2009 2009 2009 2009 2009 2009 2009
Project Charter Square Apartments Green Hill Apartments Bracken Woods Apartments Grove Street Commons I Grove Street Commons II Village at Joseph’s Run Granite Club Acres #1 Chippewassee Court Phase 1 Adams Acres Phase 1 Chippewassee Court Phase 2 606/608 Hemlock Street 5004 Tucker Street 1111 Franklin Street 4301 Hancock 310 E. Pine Street 1414 Lincoln Street 1417 Mill Street 2520 Charles Street 528 Cottonwood Street
# of Units 48 174 104 6 6 128 11 11 12 11 2 1 1 1 1 1 1 1 1
Ordinance 2-260.1 2-260.2 2-260.3 2-260.4 2-260.5 2-260.6 2-260.7 2-260.8 2-260.9 2-260.10 2-260.11 2-260.12 2-260.13 2-260.14 2-260.15 2-260.16 2-260.17 2-260.18 2-260.19
Bracken Woods Bracken Woods is a 104 unit apartment complex currently receiving a property tax exemption under the PILOT program under Section 2-260.3 of the City of Midland Code of Ordinances. It was adopted in 1995 for a period not to exceed 35 years. There are 15 years remaining on this PILOT. The annual service fee is 4% of net eligible rents as defined by Section 2-264.1 of the Code of Ordinances. The PILOT request received would create a new exemption to span 25 years encompassing the remaining 15 years of the existing PILOT plus 10 additional years. The service fee would remain at 4%. MSHDA has already qualified this project as eligible, subject to City Council’s approval of the PILOT request. As a practical matter, the existing PILOT would no longer be needed and would be repealed during this process. From testimony of both City staff and MSHDA staff who have performed on-site visits of Bracken Woods, the physical condition of Bracken Woods is in much need of updating. The current owners are not actively managing or maintaining the facility. Staff has been advised that the current owners are looking to divest themselves of their Michigan holdings – including Bracken Woods. Lockwood Development is looking to purchase Bracken Woods for approximately $3.8 million, and spend another $3 million on rehabilitation. It would be owned and operated by Bracken Woods II, LDHA LP.
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As a reminder, a similar PILOT request for Bracken Woods was previously made by the Requestor, Lockwood Companies. On July 27, 2015, City Council took action to refer that request to the Housing Commission, who held a public hearing on August 6, 2015 on the matter. The Housing Commission ultimately agreed that the proposal did meet the minimum requirements as set forth by the November 22, 2010 report, and the Commission supported the request. However, by separate motion they expressed their desire to provide more units for those at the 30% of median income level, even if it meant reducing the PILOT fee to keep the financial model in balance. On August 17, 2015, the PILOT request was then returned to City Council for the introduction and first reading to an ordinance to amend Chapter 2, Article XIII, of the City Code of Ordinances to provide a new PILOT on property known as Bracken Woods Apartments to be known as Bracken Woods II, LDHA, LP, and eliminate the existing PILOT on the same property by repealing Sections 2-260.3 and 2-264.1 in their entirety. Council’s action was to vote the request down by a 3-2 vote. Since that time Lockwood Development has revisited their financial model, and with the cooperation of MSHDA has been able to make some revisions to the original proposal. Those changes are discussed later within this report. THE AUTHORITY FOR PILOT To help the City evaluate whether a PILOT exemption should be considered, it looks to various authoritative sources for guidance. Act 346 of the Michigan State Housing Development Authority (MSHDA) Act of 1966 and Article XIII, Section 2-260 of the City of Midland Code of Ordinances recognize the importance of PILOTs as a tool to facilitate affordable housing for persons of low and moderate income. In order to qualify for a PILOT the project must meet these MSHDA requirements: 1. The owner of the project is a nonprofit housing corporation, consumer housing cooperative, limited dividend housing corporation, mobile home park corporation, or mobile home park association. The proposed owner of Bracken Woods II Apartments is a limited dividend housing corporation. 2. The project is financed with a federally-aided or authority-aided mortgage, or an advance or grant from the authority. MSHDA has approved funding for this project, pending City Council approval of the PILOT. 3. The project must serve low income persons, as defined by MSHDA. All 104 units of Bracken Woods II Apartments will serve those at 50% or below of the median income with 10 units exclusively for tenants at 30% or below the median income.
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In addition, on April 14, 2003, City Council accepted a City Staff report concerning the relationship between PILOT and affordable housing, and supported by resolution that the following three determinations be made prior to entering into future agreements: 1. That the proposed development will meet a demand not adequately addressed in the existing inventory of community rental housing. Despite the number of realtors and other existing facilities, including Bracken Woods, providing affordable housing opportunities, data would indicate that the demand is still greater than the supply. This is illustrated later in the report. 2. That the proposed development will not have a negative impact on the existing rental housing market for substantially similar units. Referring to the above item, because the demand for affordable housing is greater than the supply, continuing and extending the PILOT from Bracken Woods to Bracken Woods II would not take away opportunities currently being met by existing rental housing market. 3. That a PILOT agreement is essential to the financing of the proposed development. The current project financing model as approved by MSHDA provides funding to not only purchase Bracken Woods, but also to invest $3 million for rehabilitating the 20year-old facility. MSHDA has determined that by removing the PILOT fee and adding back a non-exempt tax burden, the project model would have inadequate cash flow to pay property taxes and the annual debt payments on the required amount of debt needed for both purchase and renovation. This would mean that the amount of debt would need to be reduced so that only the acquisition would be funded, or the Developer would need to come up with approximately $3 million of alternative financing, both of which would stop the project from moving forward. Finally, in 2009, after approving seven PILOTs for single family homes, City Council requested that staff review the City’s PILOT policy. As a result of that request, a tenmember work group comprised of staff and members of the community met several times to review the City’s existing policy and provide recommendations to the process. On November 22, 2010, City Council received and filed the associated staff report. The recommendations provided criteria for applying for a PILOT exemption and the review process for City Council, which are provided below. Required Application Materials
Complete city application form.
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No formal “application form” exists relating to PILOTs. We have received a written request for a PILOT, which has been the acceptable past practice. We recommend proceeding with the written request in lieu of a formal application form.
Must meet MSHDA eligibility and be approved as a non-profit housing corporation. MSHDA has approved this project subject to City Council’s approval of the PILOT exemption, and the structure is a “Limited Dividend Housing Association,” which qualifies under MSHDA rules.
Must be financed with a MSHDA or other similar financing program. MSHDA has approved the financing, subject to the City’s approval of the PILOT.
Provide site/project specific third party market study (completed within the past 12 months). City Council would have discretion to waive this requirement. This project is an existing PILOT. The requestor wishes to purchase and renovate the project using MSHDA funding, which requires local PILOT participation. Local market data is available through the United States Department of Housing and Urban Development Comprehensive Housing Affordable Strategy, the United States 2000 Census and the Housing Needs Assessment portion of the City of Midland’s Community Development Block Grant 5-Year Consolidated Plan and can be utilized in assessing this project. We therefore recommend that City Council waive this requirement.
All units within a proposed project must serve those at 50% or below of median income (as defined by HUD or MSHDA) and include units to serve those at 30% or below of median income. The PILOT request meets this threshold by providing 10 units for tenants at 30% or below of median income, with the balance of the units for tenants not exceeding the 50% limit. Exceptions would be any existing tenants who would exceed the 50% threshold, but would not be asked to move out.
Specify targeted rental rates by unit and income eligibility guidelines. These have been determined and will be incorporated into documentation filed with the Midland County Register of Deeds (#5 below), as well as MSHDA.
City Council Review Process 1. Application submitted directly to City Council for initial acceptance and referral. Submitted to City Council for consideration at the January 25, 2016 City Council meeting.
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2. City Council referral to the Housing Commission for study and recommendation. Approval of the submitted resolution to City Council on January 25, 2016 would execute this action. 3. The % of PILOT fee is to be negotiated between the City and applicant based upon a recommendation by staff upon financial analysis of project (minimum 4% up to 11%). The PILOT fee was investigated with both MSHDA and the Applicant. All of the City’s existing PILOTs, including the existing PILOT for Bracken Woods are set at a 4% fee. During the previous PILOT request on this property the requestor agreed to a negotiated rate of 6.5%. However the term of the PILOT was 12 years longer, and the number of units at the 30% of median income level was only 2, compared to 10 as included in the new request. In order to keep the financial model in balance given the new parameters, the requested fee was reduced to 4%. Based upon inquiries made during the last request, and the favorable changes made to the model, 4% appears to be reasonable and realistic to make this model work. 4. PILOT status shall be eligible for an original mortgage term only expiring upon payoff (not to exceed 40 years). No assignment, refinancing or sale permitted without submission of a new application. While the practical implications are that of extending the existing PILOT, it is being processed as new with a term of 25 years. 5. PILOT requirements between the Developer and the City, including all rules, regulations, policies, and obligations, shall be outlined in a document recorded with the Midland County Register of Deeds office. This will be done pending approval of the PILOT request by City Council. 6. Housing Commission review of application and provide recommendation to City Council. Should City Council approve tonight’s resolution, the Housing Commission will schedule a public hearing on this matter. See the information earlier in this report as it relates to the Housing Commission’s position on the previous PILOT request for Bracken Woods 7. City Council considers request as an ordinance amendment requiring two readings. These public hearings will be scheduled pending successful completion of the preceding steps of the process.
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STAFF ANALYSIS Midland County income limits as provided by MSHDA were used to determine the amount of allowable rent by income category. The annualized income limits for select categories, by family size are shown below.
30% of area median 40% of area median 50% of area median
1 14,700 19,600 24,500
2 16,800 22,400 28,000
Family Size 3 4 18,900 21,000 25,200 28,000 31,500 35,000
5 22,680 30,240 37,800
6 24,360 32,480 40,600
100% of area median
49,000
56,000
63,000
75,600
81,200
70,000
Effective 3/6/2015
The PILOT request provides a rental rate schedule which identifies the apartment size, tenant income level, and rental rate. This schedule was approved by MSHDA and complies with recommendations of the November 22, 2010 report. It also identifies the rent capacity for a year, assuming full occupancy, as being $827,856, as shown below.
50% income level 50% income level 50% income level 50% income level 50% income level 30% income level 30% income level 30% income level
Unit B C A B C A B C
Bedroom 2 3 1 2 3 1 2 3
Baths 2 2 1 2 2 1 2 2
# units 5 2 6 47 34 2 4 4 104
Rent/mo Rent/yr 667 40,020 730 17,520 583 41,976 675 380,700 735 299,880 320 7,680 395 18,960 440 21,120 827,856
PILOT CALCULATION ESTIMATE This facility generates carports rental revenue, which would also be included in the calculation of the PILOT fee. In the illustration below, 8% is used to estimate vacancies because it is the MSHDA standard. Actual vacancies would be used once that total is known. The estimated PILOT fee for Bracken Woods II is $28,586. Rent Capacity ADD: Carport rental LESS: Vacancy estimate SUBTOTAL Less eligible utilities Net eligible rents PILOT FEE
8%
4%
827,856 1,500 (66,228) 763,128 (48,466) 714,662 28,586
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It should be noted that the following circumstances are not allowed as a reduction in the PILOT calculation:
Promotional rent given to recruit new tenants: this is considered a marketing decision and does not reduce the Net Adjusted Rents. Housing provided to on-site management in lieu of compensation: this is considered a management decision that does not reduce the Net Adjusted Rents. Bad debts /uncollectible rent: unsuccessful collections of debts is an operational issue and does not reduce the Net Adjusted Rents.
NET TAX BENEFIT ESTIMATE If the proposed investment into Bracken Woods was made without it being granted a PILOT exemption it would pay the full tax millage of 56.6288 mills. To illustrate the developer’s tax benefit of the PILOT, assuming improved property and estimated property values as re-estimated by the City Assessor, the calculation follows: Taxable Value x current millage rate Property tax LESS PILOT Fee Net tax benefit / year Remaining years existing Add years for new PILOT Total years of PILOT Future tax benefit
$ 2,034,750 56.6288 115,225 (28,586) 86,639 15 10 25 $ 2,165,975
The table below illustrates the distribution of the potential estimated property tax, PILOT fee, and tax benefit (to the Developer), by taxing entity. ALLOCATION OF PILOT BENEFIT Taxing Unit City of Midland Schools / SET Delta College Midland County ESA Midland County
Property Tax 30,521 54,837 4,156 5,444 20,267 115,225
PILOT 7,572 13,604 1,031 1,351 5,028 28,586
Developer Benefit 22,949 41,233 3,125 4,093 15,239 86,639
It should be noted that in reality if the PILOT is not granted, this investment will not be made so the property will remain in its current status as a PILOT in unimproved condition. Similar calculations (as above) as it relates to the current Bracken Woods PILOT follow:
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CALCULATIONS FOR CURRENT BRACKEN WOODS PILOT Rent Capacity ADD: Carport rental LESS: Vacancy estimate SUBTOTAL Less eligible utilities Net eligible rents PILOT FEE
4%
779,157 2,145 (109,727) 671,575 (39,949) 631,626 25,265
Tax benefit calculation based on updated Assessor Estimate Taxable Value x current millage rate Property tax LESS PILOT Fee Net tax benefit / year Remaining Yrs 21 - 35 Future tax concession
$1,648,250 56.6288 93,338 (25,265) 68,073 15 1,021,095
The following table compares the existing PILOT to the requested PILOT
Taxable Value x current millage rate Property tax LESS PILOT Fee Net tax benefit / year Remaining years existing Add years for new PILOT Total years of PILOT Future tax benefit Years 1 - 15 Years 16 - 25
Current Proposed Change 1,648,250 $ 2,034,750 $ 386,500 56.6288 56.6288 93,338 115,225 21,887 (25,265) (28,586) (3,321) 68,073 86,639 18,566 15 15 10 10 15 25 10 $ 1,021,095 $ 2,165,975 $ 1,144,880 $
$
278,490 866,390 $ 1,144,880
In addition, the number of units dedicated to the exclusive occupancy of those at the 30% of median income or less is increased from 0 units to 10 units.
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The following table summarizes the current PILOT status for Bracken Woods, the original PILOT request from July 27, 2015, and the revised and current PILOT request.
Remaining years 30% income level committed PILOT rate PILOT FEE Property Value - see note Taxable Value - see note Tax Burden/yr Tax Benefit to developer/yr TOTAL PILOT ALL YEARS PILOT remaining years of current PILOT additional years TOTAL TAX BENEFIT ALL YEARS Tax benefit remaining years of current Tax benefits additional years
Current 15 0 4% 25,265 3,296,500 1,648,250 93,338 68,073 378,975 378,975 1,021,095 1,021,095 -
7/27/2015 37 2 6.50% 48,013 6,700,000 3,350,000 189,464 141,451 1,776,481 720,195 1,056,286 5,233,687 2,121,765 3,111,922
Requested 25 10 4% 28,586 4,069,500 2,034,750 115,225 86,639 714,650 428,790 285,860 2,165,975 1,299,585 866,390
Note: During the previous PILOT request process the valuations were provided by the City Assessor using a fairly simplified desktop calculation relying heavily upon the cost approach. The 7/27/2015 property value and taxable value reported above are representative of this. Since that time, he was involved in an appeal of an unrelated Midland apartment complex that caused him to create an appraisal for that complex, gathering more market data. Upon request, he revisited the estimated values for the current condition as well as the proposed improved condition of Bracken Woods and applied the information he learned during the appraisal process. The figures for Current and Requested in the above table reflect the updated information. THE NEED FOR AFFORDABLE HOUSING It can be concluded through review of Comprehensive Housing Affordability Strategy (CHAS) data, provided by the U.S. Department of Housing and Urban Development (HUD), that many renter households with less than 50% Area Median Income (AMI) are either “Overburdened” or “Severely Overburdened” by housing costs within the area. Overburdened is defined as a household spending between 30-49% of total income on housing expenses. Severely Overburdened is defined as a household spending 50% or more of total income on housing expenses. The data supporting this conclusion is illustrated in the tables below; the 2007-2011 dataset is the most recent data available. CHAS data is generated directly from statistics of the U.S. Census Bureau. Highlighted within the tables are the 0-30% AMI and >30-50% AMI income brackets. These two levels of income are defined as Extremely Low Income (0-30% AMI) and Very Low Income (>30-50% AMI). The conclusion that can be drawn from this data is that there
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is still an unmet need for affordable housing in Midland County in the 0-30% AMI and the >30%-50% AMI income brackets. All 104 units of Bracken Woods II will be dedicated to meeting the housing needs of households within these two income brackets with the vast majority serving Very Low Income households. Cost Burden > 30% - “Overburdened” 0-30% AMI
>3050% AMI
Renter >5080% AMI
NUMBER OF HOUSEHOLDS Small Related 410 435 Large Related 20 0 Elderly 219 350 Other 485 420 Total need by 1,134 1,205 income
Total
75 0 164 135 374
920 20 733 1,040 2,713
0-30% AMI
>3050% AMI
45 60 200 125 430
Owner >5080% AMI
135 35 380 95 645
200 70 134 90 494
Total
380 165 714 310 1,569
Source: 2007-2011 HUD’s Comprehensive Housing Affordable Strategy (CHAS)
Cost Burden > 50% - “Severely Overburdened” 0-30% AMI
NUMBER OF HOUSEHOLDS Small Related 265 Large Related 20 Elderly 120 Other 370 Total need by 775 income
>3050% AMI
Renter >5080% AMI
20 0 185 100 305
15 0 30 25 70
Total
300 20 335 495 1,150
0-30% AMI
35 15 165 110 325
>3050% AMI
Owner >5080% AMI
75 0 145 45 265
35 0 34 20 89
Total
145 15 344 175 679
Source: 2007-2011 CHAS
The attached resolution for City Council’s consideration will accept the PILOT request from Lockwood Development and refer it to the Housing Commission for study and recommendation. Representatives of Lockwood Development will be present Monday evening to make a presentation. A representative of MSHDA may be present as well.
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City Hall 333 West Ellsworth Street Midland, Michigan 48640 989.837.3300 * 989.837.2717 Fax www.midland-mi.org
BY COUNCILMAN WHEREAS, the City has received a request for a Payment In Lieu of Taxes (PILOT) from Mark Lockwood of Lockwood Development to facilitate the purchase and rehabilitation of the existing PILOT project know as Bracken Woods Apartments; and WHEREAS, Act 3436 of the Michigan State Housing Development Authority (MSHDA) Act of 1966 and Article XIII, Section 2-260 of the City of Midland Code of Ordinances recognize the importance of PILOTs as a toll to facilitate affordable housing for persons of low and moderate income; and WHEREAS, City Council has previously granted PILOT exemptions to projects that meet MSHDA requirements, and additional criteria as adopted by City Council on April 14, 2003; and WHEREAS, on November 22, 2010, City Council received and filed a report from Staff that recommends that no assignment, refinancing, or sale would be permitted without submission of a new PILOT application, and said application should be submitted directly to City Council for initial acceptance and referral to the Housing Commission for study and recommendation; now therefore RESOLVED, that the PILOT request from Lockwood Development to facilitate the purchase and rehabilitation of the property known as Bracken Woods Apartments is hereby accepted and referred to the Housing Commission for study and recommendation. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all of the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016. ___________________________________ Selina Tisdale, City Clerk
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Capital Needs Assessment and Replacement Reserve Analysis Preservation
Prepared for: Michigan State Housing Development Authority 735 East Michigan Avenue P.O. Box 30044 Lansing, MI 48909
Bracken Woods MSHDA #926 Midland, MI February 13, 2015
Final Report on-site-insight.com
Capital Needs Assessment Bracken Woods Midland, MI
Bracken Woods is a residential development for families that is located within a short drive of various retail and commercial establishments. The development is comprised of ten residential buildings and two, freestanding, office/laundry/maintenance buildings. The residential buildings contain a total of 104 units – 8 one-bedroom (garden-style), 56 two-bedroom (garden-style), and 40 three-bedroom (townhouse-style). Original construction of the development dates to 1995, and it was financed by the Michigan State Housing Development Authority (MSHDA).
This assessment (CNA) is being conducted on behalf of the Michigan State Housing Development Authority (MSHDA). The report is aimed at determining the development's current and prospective capital needs as part of a possible refinancing of the property under the Authority’s “Preservation” program. The property has substantive capital needs anticipated in the coming years; a number of systems and components are at, or approaching, the end of their useful lives. The Rehab Scope of Work (SOW) covers most near-term needs for the development. Capital work to be completed under the Scope of Work (SOW) are shown with an age of zero (0). A copy of the Scope of Work is attached as an addendum to the report. Additional needs not identified in the SOW include retaining wall
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repairs, additional footing repairs at carports, selective pruning/removal of trees and limbs, maintenance shed repairs, office/laundry/maintenance building furnace replacement, and replacement of additional in-unit appliances based on current ages.
For planning purposes, Year 1 of the report is shown as 2015. No budget estimate for The Rehab Scope of Work (SOW) was provided as part of the preparation of this assessment. Year 1 costs above the Rehab SOW are projected at $1,337 or $13 per unit. Twenty-year capital needs are projected at $22,041 per unit in inflated dollars.
Under the parameters of MSHDA’s ‘Preservation’ financing, annual reserve deposits are set at $300/unit with a Reserve Balance of $0/unit in Year 1 adjusted to a minimum of $1,000/unit as a Reserve Balance at the beginning of Year 2. If necessary, an infusion of additional capital, beyond the costs of the work (SOW) anticipated in Year 1, may be in order to maintain positive replacement reserve balances throughout the plan’s timeline. The Preservation Plan calls for additional capital of $800,000 in Year 1 to maintain positive reserve balances throughout the next twenty years.
Site Site Surface Bracken Woods is situated on a moderate sized parcel with generally level topography. Site landscaping includes a mix of grass areas, trees, shrubs, and other plantings. As-needed re-grading of the soil around the buildings to help ensure positive drainage away from the foundations is included as part of the SOW. The SOW also includes selective pruning and/or removal of various plantings. An allowance to complete similar pruning/landscape-related is included in Year 11. Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
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An asphalt-paved roadway provides access to the site, and parking areas of similar construction, serve the various clusters of buildings. The asphalt surfaces are original and exhibit varying levels of age-related wear and deterioration including alligatoring and potholes. The SOW includes milling of the existing asphalt paving as needed and resurfacing of all surfaces. Future allowances for routine cycles of asphalt surface maintenance (crackfilling, sealcoating, and striping) are shown in Years 6, 11, and 16.
Steel-framed carports provided sheltered parking at various locations throughout the site. The carport structures vary in condition with significant movement of the footings that is resulting in the carports leaning and being out of plumb noted at multiple locations. The SOW includes resetting of the footings and repair of the carports. A subsequent allowance for potential future carport repair needs is shown in Year 11.
Concrete walkways provide pedestrian access throughout the site. The walkways are in fair to good condition at the present time; several areas of minor spalling were noted during the assessment. An initial cycle of as-needed sectional repair and/or replacement is included in the SOW. Subsequent allowances for potential future needs are shown every three years, starting in Year 4.
Pole-mounted light fixtures that vary in style and age provide illumination for the development’s access drive, parking areas, and pedestrian walkways. No problems related to the poles or fixtures were noted. Future allowances for fixture replacement needs are shown over eight-year periods starting in Years 3 and 13.
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Leased dumpsters for solid waste disposal are present at two site locations. The dumpsters are screened from view by board-type pressure treated wood fencing. Overall, the fencing is in generally good condition. The SOW includes as needed repair and painting of these enclosures. An allowance for future replacement is shown in Year 8. Low, wood timber, retaining walls are located near some of the carports. Additionally, there are wood flower boxes/planters at some site locations. The retaining walls are in fair condition with limited deterioration and loose/displaced timbers noted during the assessment. Periodic allowances for as needed repair and/or replacement of the timbers are shown every five years, starting in Year 1. As-needed repair/replacement of the retaining wall timbers and repair and painting of the flower boxes/planters is included in the SOW. Modest periodic allowances for future needs related to the retaining walls are shown in Years 6, 11, and 16. No subsequent costs are shown; the flower boxes/planters should be monitored and maintained going forward. Play areas with original metal equipment are present at three site locations. The equipment is in fair but dated condition. The SOW includes replacement/upgrading of the existing equipment; no subsequent capital costs are anticipated during the plan’s timeframe. Pedestal mounted cluster mailboxes are located at various locations throughout the development. Surface rust is typical on the pedestals, and replacement of all is included in the SOW. A double-sided wood monument sign that is in fair condition is located at the entrance to the development. Replacement of the sign is included in the SOW, and no subsequent costs are shown. The woodframed storage shed, located adjacent to the dumpster enclosure near the front of the site, exhibits age-related wear and deterioration, most notably along the bottom of the doors. An initial allowance for as needed repair of this structure is included in the SOW. Future allowances for as needed repairs are shown in Years 6, 11, and 16. Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
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Site Distribution Systems The development is served by a full complement of municipal and utility company provided services including water, sewer, natural gas, and electricity. There were no observed or reported problems with any of the site distribution systems, and no capital expenditures are anticipated with regard to them. They should be monitored and maintained going forward. The developed landscaping at the site is served by an underground irrigation system. Initial replacement of the irrigation system’s controllers is included in the SOW. Future controller replacement allowances are shown in Years 11-13.
Building Mechanical and Electrical Systems Mechanical Systems Central mechanical systems at the development are limited to those at each of the two office/laundry/maintenance buildings. Each building is equipped with an original York, natural gas-fired, warm air furnace for space heating. No operational problems related to either furnace were noted during the assessment; however, based on their current age, they have reached the end of their expected useful service lives; replacement is included in the SOW. An original, exterior-mounted, condenser unit provides cooling capacity the interior spaces at the front office/laundry/maintenance building. Initial replacement of the condenser is included in the SOW. Future replacement of the new condenser is shown in Year 16. Domestic hot water needs at the front office/laundry/maintenance building are met via a 100-gallon, Lochinvar, natural gas-fired tank that dates to 2010. An original 84-gallon A.O. Smith natural gas-fired tank serves the rear office/laundry/maintenance building. Future replacement of the Lochinvar tank is shown in Years 6 and 16. Initial replacement of the A.O. Smith tank is included in the SOW, and a subsequent replacement cycle is shown in Year 11.
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Electrical Systems All units at the development are individually metered for consumption of electricity. No problems related to any of the electrical meters or switchgear equipment were noted, and no capital costs are shown. These components should be monitored going forward. Each office/laundry/maintenance building has wall-mounted battery pack fixtures for emergency illumination and hardwired, local ring, smoke/fire detection end devices. No problems related to these systems were observed or reported, and no capital costs are shown. They should be monitored and maintained going forward.
Building Architectural Systems Building Exterior Each of the residential buildings is a two-story, wood-framed, structure on a masonry block foundation. The office/laundry/maintenance buildings are one-story structures of similar design and construction type. No problems related to the foundations or framing were noted during the assessment, and no capital costs are shown.
Exterior wall surfaces on all buildings are clad with clapboard-profile vinyl siding that dates to the time of original construction. Overall, the siding is in fair to good condition. Isolated loose seams and areas of past repair were noted at various locations throughout the development. Dirt and organic growth on the vinyl surfaces was noted to be typical at most buildings. Pressure washing of all vinyl siding, trim, and soffits is included in the SOW. Subsequent allowances for similar work are shown in Years 6 and 11. Future replacement of the siding, after thirty years of service, is shown in Year 16.
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The common entry doors at the office/laundry/maintenance buildings are single leaf insulated steel doors with steel frames. Replacement of both doors is in the SOW, and no subsequent replacement needs are anticipated during the plan’s timeframe.
Exterior unit entry doors are similar to the common entry doors. Rust and deterioration, some of which is significant, was noted at several locations. Loose and or damaged thresholds were also noted at several of the exterior unit entry doors. The SOW specifies as needed repair/replacement and painting of all exterior unit doors. Future replacement of the remaining doors, estimated at approximately one-third of the total, is shown over a fifteen-year period starting in Year 6. Vinyl-framed sliding glass doors provide access to either a private patio or balcony area at each unit. The doors are original and in fair to good overall condition. As-needed repair and/or replacement of one-half of the doors is included in the SOW. Based on observed conditions, replacement of the remaining half is shown in Year 16, concurrent with the replacement of the exterior siding. A mix of single and double leaf steel doors provide access to unit mechanical closets and other service/storage areas. The doors are largely sheltered from the elements and in generally good condition at the present time. Future allowances for gradual replacement are shown annually, starting in Year 6.
Original, vinyl-framed slider-style windows with double-glazing and integral screens are typical throughout the development. During the course of the assessment, no operational problems related to the windows were observed or reported; however, fogged glazing panels were noted at some locations. An allowance for as needed replacement of glazing panels is included in the SOW. Subsequent allowances for glazing panels and screens are shown in Years 6-15. Future, full replacement, of the window assemblies is shown in Year 16.
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The concrete patios at the rear of each first-floor level garden-style unit and all townhouse units are in generally good condition. Isolated cracks, but no displacement or trip hazards, were noted. Periodic future allowances for as needed patio replacements are shown in Years 3, 8, 13, and 18. Garden-style units at the second floor level have pressure-treated wood balconies with painted wood railing assemblies. The SOW includes replacement of the existing balconies and as needed repair/replacement of the railing assemblies. Future replacement of the new balconies is not anticipated during the plan’s timeframe, and no capital costs are shown.
Roof The roof of each building at the development is comprised of pitched wood trusses and wood sheathing that is covered with original three-tab asphalt shingles. The shingles are in fair condition at the present time. Replacement of all existing shingles, including ripping of the original shingles, is included in the SOW. No subsequent replacement needs are anticipated during the plan’s timeframe. Aluminum gutters and downspouts provide drainage for the roof surfaces. These elements are in fair condition and shown for replacement as part of the SOW. The new gutters and downspouts should be monitored and maintained going forward.
Interior Common Areas All of the development’s interior common areas are contained within the two, freestanding, community/laundry/maintenance buildings. The building located nearest to the front of the site houses the management offices, a laundry room, and a maintenance shop. The building nearest to the rear of the site houses a laundry room and maintenance/storage space. Interior common area wall and Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 8
ceiling surfaces are painted drywall. Floor surfaces in the office are primarily carpet with a small area of vinyl composition tile (VCT) present near the entry door. Laundry room floors at both buildings are covered with vinyl composition tile (VCT). An initial painting cycle for all interior common areas is included in the SOW. Allowances for future painting are shown in Year 11. Replacement of the office floor coverings is also included in the SOW. Future replacement of the carpet is shown in Year 11, and replacement of the VCT is shown in Year 16. The laundry room and restroom VCT flooring dates to 2006 and it is in generally good condition; future replacement is shown in Year 7.
Dwelling Units During the course of the assessment OSI accessed the interior of sixteen units accounting for 15% of the total. These were distributed throughout the development and among all unit types. A sample of this size is felt to be sufficient given the age, tenancy, design, and location of the development. Additional information about units and capital replacements was obtained from discussions with residents and staff during the course of the unit review. Finishes Wall and ceiling surfaces throughout the units are finished with texture painted drywall. The drywall surfaces are in generally good condition at the present time. Periodic painting is seen as a maintenance concern, and no capital costs are shown. Floor surfaces in unit living areas are carpeted. The carpeting varies in age and condition, and the SOW includes as-needed replacement. Future replacement cycles for all carpeting are shown over seven-year periods starting in Years 4, 11, and 18.
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 9
Unit interior passage doors are hollow core wood. Bi-fold doors of similar construction are used on the unit closets. The doors are in fair to good condition with isolated surface wear/damage and hardware issues noted during the assessment. As-needed replacement of both door types is included in the SOW. No subsequent capital costs are shown. Any future needs are seen as being addressed as maintenance concerns.
Kitchens Floor surfaces in unit kitchens are covered with vinyl composition tile (VCT). The VCT varies in age and condition; surface wear and seam separation was noted in several units. As needed replacement of the existing VCT is included in the SOW. Future replacement cycles for all VCT are shown over ten-year periods starting in Years 5 and 15.
All unit kitchens have original laminated particleboard cabinets and varying age countertops that are of similar construction. The cabinetry is in fair to good condition for its age. New cabinets and countertops in 50% of the units is included as part of the SOW. No subsequent capital needs for the new cabinets are anticipated during the plan’s timeframe. Future replacement of the cabinets and countertops not replaced as part of the SOW is shown over a five-year period starting in Year 6. Modest future allowances for the as needed replacement of countertops only are shown from Year 11 forward.
Typical appliances in each kitchen include a thirty-inch wide electric range, recirculating rangehood, frost-free refrigerator, full-size built-in dishwasher, and fractional horsepower garbage disposal. The appliances are largely original to the development, and
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 10
replacement of a portion of ranges, rangehoods, and refrigerators is included in the SOW. Replacement of the remaining appliances, not included in the SOW, and future full replacement cycles are shown based on observed conditions, current ages, and expected useful service lives.
Bathrooms With the exception of the one-bedrooms, all units at the development have two full bathrooms. Floor surfaces in the unit bathrooms are similar to those in the kitchens; replacement of all bathroom vinyl floor coverings are included in the SOW. Future replacement cycles are shown starting in Years 8 and 18. Typical fixtures in each bathroom include a vitreous china toilet, fiberglass bathtub with ceramic tile surround and anti-scald mixing valve, laminated particleboard vanity, and inset enameled sinks. Additionally, each bathroom has a recessed plastic medicine cabinet with mirrored door, typical rails and holders for various toiletries, and ceilingmounted exhaust fan. Replacement of all existing toilets with low-flow models is included in the SOW. No subsequent capital needs are anticipated, and no costs are shown. No problems related to the bathtubs, ceramic tile surrounds or anti-scald valve assemblies were noted during the assessment. Modest annual allowances for potential future needs are shown from Year 6 forward. The vanities are similar in style and condition to the kitchen cabinetry. Replacement of all vanities and sinks is included in the SOW; and no subsequent capital costs are anticipated. The medicine cabinets and accessories were observed to be in good overall condition. Allowances for gradual future replacement are shown in Years 6-10. The SOW includes replacement of twenty-five exhaust fans. Future replacement allowances for all exhaust fans are shown annually, starting in Year 6.
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 11
Unit Mechanical and Electrical Interior space heating needs are met via Aqua-Therm systems which utilize an air handler that is equipped with a wet loop coil fed from the unit’s existing natural gas-fired domestic hot water tank to produce warm air for distribution throughout the unit. A thru-wall condenser unit, also working on concert with the air handler, provides cooling capacity for the units. The SOW includes replacement of all existing air handlers, domestic hot water tanks, air conditioning condensers, and wall-mounted thermostats that help to regulate system performance. No subsequent capital needs for the air handler units are anticipated, and no capital costs are shown. Future replacement cycles for the domestic hot water tanks are shown over eight-year period starting in Years 6 and 14. Allowances for future replacement of the condensers and thermostats are shown from Year 16 forward.
Each unit has an electric service panel equipped with circuit breakers. No problems related to the circuit breaker panels were noted, and no capital costs are shown. Hardwired smoke detectors are typical in the units. Initial replacement of all of these devices is included in the SOW. Future replacement allowances are shown from Year 11 forward.
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
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Capital Needs Summary, Replacement Reserve Analysis Future capital actions are based on useful life expectations and assume continued effective maintenance and physical management. The timing of actions by system (including quantities and costs) is also presented in the Capital Needs Worksheet. Costs for the twenty-year plan total $2,292,255 or $22,041 per unit in inflated dollars ($15,296per unit in 2015 dollars).
The Preservation Plan is aimed at fully meeting projected needs through Year 20 under the Preservation guidelines. Annual contributions are set at $31,200 per year, or $300 per unit. For planning purposes here, these contributions are shown being indexed at 3% for inflation going forward. The plan shows an infusion of $800,000 in Year 1 to cover near term capital costs and provided a reserve balance to maintain positive balances throughout the report’s time horizon.
Additional Notes: 1. The Physical Assessment of the property was conducted on December 9th, 2014. Additional information was provided to ON-SITE INSIGHT by site staff and others. Bruce Hutchinson represented OSI on this assignment. We would like to thank the Bracken Woods site staff for their assistance. 2. Regular updates of this plan are recommended to ensure careful monitoring of major building systems and to adjust the program to accommodate unanticipated circumstances surrounding the buildings, operations, and/or occupants. 3. Information reviewed in preparation of this report included historic data on capital activities and costs, original plans, and current prices for capital actions. 4. No formal evaluation of environmental concerns, including but not limited to asbestos containing materials (ACMs), lead-based paint, chlorofluorocarbons (CFCs), polychlorinated biphenyls (PCBs), and mildew/mold has been undertaken as part of this assessment.
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 13
Development sign
Asphalt paved access drive and parking area surfaces exhibit age-related cracks, wear, and deterioration
Cracks/deterioration of concrete sidewalk surfaces noted at various locations
Concrete footings for carport framing columns exhibit significant movement/ displacement at several locations
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 14
One of three on-site play areas with original metal play equipment
Selective tree pruning/removal needed at some locations
Original York warm gas-fired warm air furnace at front office/laundry maintenance building – Operable but at or near end of its expected useful service life
Natural gas-fired domestic hot water tank at front office/laundry/maintenance building was replaced in recent years
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 15
Original, exterior-mounted, condenser unit for cooling of interior space at front office/laundry/maintenance building
Original natural gas-fired furnace at domestic hot water tank at rear office/laundry/maintenance building – Both pieces operable but at or beyond the end of their expected useful service lives
Front elevation of building containing garden-style units
Front elevation of a building containing townhouse-style units
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 16
Front office/laundry/maintenance building
Rear office/maintenance/laundry building
Dirt and organic growth typical on original vinyl siding wall surfaces; isolated areas of past repair also noted
Isolated area of siding repaired via face nailing
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 17
Peeling paint typical on wood trim at entry canopies
Isolated bird-damaged wood column at a garden-building balcony structure
Rust/deterioration of exterior unit entry door frames and loose thresholds noted at a large number of units
Original slider-style windows typical throughout all buildings
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 18
Typical first floor level concrete patios and second floor level wood-framed balconies at a garden-style building – Townhouse units also have concrete patios
Isolated cracks, but not displacement or trip hazards, noted at some patios
Typical wood balcony and railing assembly
All building roofs covered with original three-tab shingles – Age related wear evident
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 19
Management office located at front office/laundry/maintenance building
Laundry room located at front office/laundry/maintenance building
Typical finishes in unit living areas
Typical finishes and equipment in unit kitchens – Significant portions of the appliances are original
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 20
Typical finishes and fixtures in unit bathrooms
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Natural gas-fired DHW tank (on left) produces DHW and works in concert with the air handler unit (on right) and the condenser unit (in center) to provide thermal comfort within each unit
Page 21
Capital Needs Summary
Bracken Woods
$900,000
$800,000
In inflated dollars (3%)
$700,000
$600,000
$500,000 100%
Year One Distribution
$400,000
10% $300,000
1% 10%
$200,000
$100,000
$0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
2015
15
16
17
18
19
20
79%
2034 Ten Year Distribution
Total Costs by Building System (inflated dollars) 8%
In Year 1 Site Systems
In Years 1-10
In Years 1-20
$58,001 or $558/unit
$179,499 or $1,726/unit
Building Mech. & Elec.
$5,217 or $50/unit
$20,106 or $193/unit
Building Architectural
$59,402 or $571/unit
$766,570 or $7,371/unit
$1,337 or $13/unit
$461,787 or $4,440/unit
$1,326,080 or $12,751/unit
In inflated dollars:
$1,337 or $13/unit
$584,406 or $5,619/unit
$2,292,255 or $22,041/unit
In current dollars:
$1,337 or $13/unit
$483,778 or $4,652/unit
$1,590,822 or $15,296/unit
1%
Mechanical Room 58%
Dwelling Units
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
33%
Twenty Year Distribution
Page 22
Capital Needs Summary OSI Ref:
Bracken Woods Midland, MI
14571
Residential Buildings:
15
Property Age:
20 Years
Total Number of Units:
Financing:
MSHDA
Occupancy:
Family
104
2015 Year 1
2016 Year 2
2017 Year 3
2018 Year 4
2019 Year 5
2020 Year 6
2021 Year 7
2022 Year 8
2023 Year 9
2024 Year 10
Surface Site Distribution Systems
$0 $0
$0 $0
$1,910 $0
$5,407 $0
$2,026 $0
$28,049 $0
$5,908 $0
$5,965 $0
$2,280 $0
$6,456 $0
Site Sub-Total
$0
$0
$1,910
$5,407
$2,026
$28,049
$5,908
$5,965
$2,280
$6,456
Boilers Boiler Room Systems
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
Mechanical Sub-Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Mechanical Electrical Elevators
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$5,217 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Mechanical & Electrical Sub-Total
$0
$0
$0
$0
$0
$5,217
$0
$0
$0
$0
Structural and Exterior Roof Systems Halls, Stairs, Lobbies Community Spaces
$0 $0 $0 $0
$0 $0 $0 $0
$2,122 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$27,230 $0 $0 $0
$6,317 $0 $0 $1,164
$8,966 $0 $0 $0
$6,701 $0 $0 $0
$6,902 $0 $0 $0
Building Architectural Sub-Total
$0
$0
$2,122
$0
$0
$27,230
$7,480
$8,966
$6,701
$6,902
Living Areas Kitchens Bathrooms Mechanical & Electrical
$0 $1,337 $0 $0
$0 $1,377 $0 $0
$0 $1,419 $0 $0
$21,910 $1,461 $0 $0
$23,760 $3,803 $0 $0
$24,473 $31,466 $19,089 $6,782
$25,207 $32,410 $7,722 $6,985
$25,963 $37,432 $11,129 $7,195
$26,742 $38,555 $11,463 $7,411
$27,544 $39,712 $11,807 $7,633
Dwelling Units Sub-Total
$1,337
$1,377
$1,419
$23,371
$27,563
$81,810
$72,324
$81,720
$84,171
$86,696
Total Capital Costs
$1,337
$1,377
$5,450
$28,778
$29,589
$142,306
$85,712
$96,650
$93,153
$100,055
Site Systems
Mechanical Room
Building Mech. & Electrical
Building Architectural
Dwelling Units
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 23
Bracken Woods Costs on these two pages are aggregated by category from the Capital Needs worksheets which follow. Total capital costs on these two pages are carried forward to line F of the Replacement Reserve Analysis(es) that follow.
2025 Year 11
2026 Year 12
2027 Year 13
2028 Year 14
2029 Year 15
2030 Year 16
2031 Year 17
2032 Year 18
2033 Year 19
2034 Year 20
$44,880 $1,344
$0 $1,384
$7,055 $1,426
$2,643 $0
$2,723 $0
$42,600 $0
$2,888 $0
$2,975 $0
$8,424 $0
$3,156 $0
Surface Site Distribution Systems
$46,224
$1,384
$8,480
$2,643
$2,723
$42,600
$2,888
$2,975
$8,424
$3,156
Site Sub-Total
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
Boilers Boiler Room Systems
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Mechanical Sub-Total
$6,048 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$8,841 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Mechanical Electrical Elevators
$6,048
$0
$0
$0
$0
$8,841
$0
$0
$0
$0
Mechanical & Electrical Sub-Total
$31,568 $0 $0 $2,474
$7,323 $0 $0 $0
$10,394 $0 $0 $0
$7,769 $0 $0 $0
$8,002 $0 $0 $0
$621,769 $0 $0 $467
$3,370 $0 $0 $0
$6,777 $0 $0 $0
$3,575 $0 $0 $0
$3,682 $0 $0 $0
Structural and Exterior Roof Systems Halls, Stairs, Lobbies Community Spaces
$34,041
$7,323
$10,394
$7,769
$8,002
$622,237
$3,370
$6,777
$3,575
$3,682
Building Architectural Sub-Total
$28,371 $14,557 $8,936 $9,609
$29,222 $20,752 $9,204 $9,897
$30,099 $21,375 $9,480 $10,194
$31,002 $22,016 $9,764 $10,500
$31,932 $22,677 $10,057 $10,815
$32,890 $23,357 $10,359 $30,178
$33,876 $24,058 $10,670 $31,083
$34,893 $24,779 $10,990 $32,016
$35,939 $25,523 $11,319 $32,976
$37,017 $26,289 $11,659 $33,965
Living Areas Kitchens Bathrooms Mechanical & Electrical
$61,473
$69,075
$71,148
$73,282
$75,480
$96,783
$99,687
$102,677
$105,758
$108,930
Dwelling Units Sub-Total
$147,786
$77,782
$90,022
$83,694
$86,205
$770,461
$105,945
$112,429
$117,756
$115,769
Total Capital Costs
Site Systems
Mechanical Room
Building Mech. & Electrical
Building Architectural
Dwelling Units
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 24
Replacement Reserve (RR) Analysis: Preservation Plan
Bracken Woods
$1,200,000
$1,100,000
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
2015
19
20
2034 Inflated dollars (3%)
Current reserve Balance: Current annual contributions to reserves:
$0 $31,200
In current dollars
At the end of Year One, Reserve Balances are projected to be: $830,643 At the end of Year 20, Reserve Balances are projected to be: $177,901 All projected capital needs are met throughout the plan
Starting reserve balance of $0 and annual contribution of $300/unit, indexed at 3% for inflation, per MSHDA Preservation Guidelines $800,000 in outside capital included in Year 1 to cover items not in SOW and meet minimum Year 2 starting reserve balance of $1,000/unit
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 25
Replacement Reserve (RR) Analysis: Preservation Plan
Bracken Woods Reserve Funding In Year 1
$0 or $00/unit
Start replacement reserve balance: Contributions to Reserves:
$31,200 or $300/unit
Replacement Reserve (RR) analysis starts here with the starting RR balance reported, or imputed, to have been on hand at the start of Year 1, and current annual RR contributions. The projections below reflect Starting RR Balance (Line A), plus the Total Annual RR Contributions (Line D) and Interest Earnings on RR (Line E), minus Total Annual Capital Costs (Line F), taken from the CNS above. This is expressed arithmetically as (A+D+E)-F=G, Year-End Balances, then carries forward to Line A of the following Year.
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$0
$830,643
$903,737
$977,402
$1,032,439
$1,090,466
$1,039,757
$1,044,219
$1,039,111
$1,038,425
$300
$309
$318
$328
$338
$348
$358
$369
$380
$391
300
309
318
328
338
348
358
369
380
391
$31,200
$32,136
$33,100
$34,093
$35,116
$36,169
$37,254
$38,372
$39,523
$40,709
$780
$42,336
$46,014
$49,722
$52,500
$55,428
$52,919
$53,170
$52,944
$52,939
$31,980
$905,114
$982,852
$1,061,217
$1,120,055
$1,182,063
$1,129,931
$1,135,761
$1,131,578
$1,132,073
(A) Reserve Balances Starting Replacement Reserves (B) Annual Funding Contributions Indexed at 3% (C)
Additional Unit Contributions
(D)
Total Annual Reserve Funding
(E)
Interest on Reserves at 5%
Total Funds Available (F)
Total Capital Cost
$1,337
$1,377
$5,450
$28,778
$29,589
$142,306
$85,712
$96,650
$93,153
$100,055
(G)
Reserve Balances
$30,643
$903,737
$977,402
$1,032,439
$1,090,466
$1,039,757
$1,044,219
$1,039,111
$1,038,425
$1,032,019
Outside Capital:
$800,000
Adjusted Reserve Balances
$830,643
$0
$0
$0
$0
$0
$0
$0
$0
$0
Notes: Starting reserve balance of $0 and annual contribution of $300/unit, indexed at 3% for inflation, per MSHDA Preservation Guidelines $800,000 in outside capital included in Year 1 to cover items not in SOW and meet minimum Year 2 starting reserve balance of $1,000/unit *ANNUAL RR CONTRIBUTIONS are shown being indexed for inflation at the % specified above except when Additional Contributions are called for. Line C, Additional Contributions allows for material adjustments in annual RR funding that would enable the property to meet all projected needs out of reserves through Year 20. **INTEREST EARNINGS ON RESERVES are calculated on 100% of starting balances and on 50% of the total annual contribution for the year at the rate shown
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 26
Replacement Reserve (RR) Analysis: Preservation Plan
Bracken Woods
Reserve Funding In Year 20 Projected replacement reserve balance is $177,901
This is $1,711 per unit in inflated dollars or $976 per unit in uninflated dollars
Projected annual funding to reserves is $54,709
This is $526 per unit in inflated dollars or $300 per unit in current dollars
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20 Reserve Balances (A)
$1,032,019
$978,812
$994,239
$999,525
$1,012,771
$1,025,577
$356,218
$319,403
$275,802
$226,279
Starting Replacement Reserves
Annual Funding (B) $403
$415
$428
$441
$454
$467
$481
$496
$511
$526
Contributions Indexed at 3% Additional Unit Contributions
(C)
403
415
428
441
454
467
481
496
511
526
$41,930
$43,188
$44,484
$45,818
$47,193
$48,609
$50,067
$51,569
$53,116
$54,709
Total Annual Reserve Funding
(D)
$52,649
$50,020
$50,824
$51,122
$51,818
$52,494
$19,063
$17,259
$15,118
$12,682
Interest on Reserves at 5%
(E)
$1,126,598
$1,072,021
$1,089,546
$1,096,465
$1,111,782
$1,126,680
$425,348
$388,231
$344,036
$293,671
Total Funds Available
$147,786
$77,782
$90,022
$83,694
$86,205
$770,461
$105,945
$112,429
$117,756
$115,769
Total Capital Cost
(F)
$978,812
$994,239
$999,525
$1,012,771
$1,025,577
$356,218
$319,403
$275,802
$226,279
$177,901
Reserve Balances
(G)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 27
Bracken Woods SITE SYSTEMS Replacement Items
(Expected Useful life)
Quantity
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
$0
0
20
Notes
SURFACE Roadways
96,115 sf
Parking
As-needed milling and full resurfacing of all asphalt in SOW Monitor going forward
sf
Crack-Fill and Sealcoat
96,115 sf
0.22
$21,145
0
5
6
/11 /16
in
1 Year
Sidewalks
62,960 sf 148 ttl lf 1 ls
0.05
$3,148
varies
3
4
/7
in
1 Year
750.00
$750
varies
5
6
/11 /16
in
1 Year
$0
0
20
$3,050
~12
20
in
1 Year
$0
0
20
Retaining Walls Flower Boxes/Planters Fencing
3 ea
/10 /13 /16 /19
Future asphalt surface maintenance cycles - crackfill, sealcoat, and stripe As-needed sectional repair/replacmenet of concrete in SOW Periodic allowances for potential future sectional repair/replacement needs Initial repair/repl. of low timber walls at some carports in SOW Future allowances for additional as-needed sectional repair/replacement As-needed repair and painting in SOW Monitor going forward
lf
Dumpster Enclosures Play Equipment
61 lf
50.00
1 ls
8
Site Lighting
32 ea
450.00
$14,400
varies
10
3
Landscaping
1 ls
3500.00
$3,500
varies
10
11
in
1 Year
Carports
1 ls
7500.00
$7,500
varies
20
11
in
1 Year
Mail Facilities
1 ls
$0
0
20
Development Sign
1 ea
$0
0
20
Maintenance Shed
1 ea
$500
varies
5
in
1 Year
500.00
6
/13
/11 /16
over 8 Years
As-needed repair and painting in SOW Future replacement of presure-treated wood board fencing enclosures Replacement of existing play equipment in SOW Monitor new equipment going forward Pole-mounted fixtures of varying ages and styles No problems noted; Allowances to replace fixtures As-needed re-grading included in SOW Some trees in need of pruning/removal; Periodic allowances Resetting of footings at carports in SOW Future allowances for as needed repairs, surface prep, painting, etc. Replacement of existing pedestal-mounted cluster boxes in SOW Monitor new structures going forward SOW included installation of new monument sign Monitor and maintain new sign going forward Initial repair of wood shed near office/laundry building in SOW Future allowances for additional repair/replacement needs
SITE DISTRIBUTION SYSTEMS Gas Lines
1 ls
$0
20
60
Sanitary Lines
1 ls
$0
20
60
Cold Water Lines
1 ls
$0
20
60
Electric Distribution
1 ls
$0
20
60
$3,000
varies
10
Sanitary Leach Fields
Utility supplied No problems observed or reported; Monitor Municipally supplied No problems observed or reported; Monitor Municipally supplied No problems observed or reported; Monitor Utility supplied No problems observed or reported; Monitor
ls As-needed replacement of controllers in SOW
Landscape Irrigation
1 ls
3000.00
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
11
over 3 Years
Periodic future allowances for continued as-needed replacements
Page 28
Projected Capital Needs Over Twenty Years
Bracken Woods SITE SYSTEMS
Costs projected at 3%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
SURFACE $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$24,513
$0
$0
$0
$0
$28,418
$0
$0
$0
$0
$32,944
$0
$0
$0
$0
$0
$0
$0
$3,440
$0
$0
$3,759
$0
$0
$4,107
$0
$0
$4,488
$0
$0
$4,904
$0
$0
$5,359
$0
$0
$0
$0
$0
$0
$869
$0
$0
$0
$0
$1,008
$0
$0
$0
$0
$1,168
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,751
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,910
$1,967
$2,026
$2,087
$2,149
$2,214
$2,280
$2,349
$0
$0
$2,566
$2,643
$2,723
$2,804
$2,888
$2,975
$3,064
$3,156
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,704
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,079
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$580
$0
$0
$0
$0
$672
$0
$0
$0
$0
$779
$0
$0
$0
$0
SITE DISTRIBUTION SYSTEMS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,344
$1,384
$1,426
$0
$0
$0
$0
$0
$0
$0
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 29
Bracken Woods BUILDING MECHANICAL AND ELECTRICAL Replacement Items
Quantity
(Expected Useful life)
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
Notes
BUILDING MECHANICAL Compactors
ea
Building Fire Suppression
ls
Building Heating Distribution
ls
Domestic Hot/Cold Water Dist.
1 ls
$0
20
40
No problems observed or reported; Monitor
Building Sanitary Waste & Vent. Dist. Building Gas Distribution
1 ls
$0
20
75
No problems observed or reported; Monitor
1 ls
$0
20
75
Building Warm Air Furnace
2 ea
$0
0
20
Building Air Conditioning
1 ea
1175.00
$1,175
0
15
16
Domestic Hot Water Generation
1 ea
4500.00
$4,500
4
10
6
Domestic Hot Water Generation
1 ea
4500.00
$4,500
0
10
11
Domestic Hot Water Pumps
2 ea
$0
varies
10
No problems observed or reported; Monitor Repl. of existing warm air furnaces at office/lndry bldgs in SOW Monitor new furnaces going forward Replacement of two-ton exterior condenser unit in SOW Future replacement allowance for new condenser Lochinvar 100-gallon natural gas-fired tank at office/laundry bldg Replaced in recent years, good condition; Future replacement allow's Repl. of 84-gal natural gas-fired tank at rear laundry bldg in SOW Future replacement allowance for new tank Fractional horsepower cartridge-style pumps Replacement included with tanks
Sewage Ejectors
Emergency Generator
in
1 Year
in
1 Year
Units individually metered 1 ls
$0
20
99
No problems observed or reported; Monitor
ea
Emergency Lights
1 ls
$0
varies
10
Smoke / Fire Detection
1 ls
$0
varies
10
Signaling / Communication
1 Year
ea
BUILDING ELECTRICAL Building Power Wiring
/16
in
Wall-mounted battery packs at office/laundry building No problems noted; Monitor Hardwired smoke detectors at office/laundry buildings No problems noted; Monitor
ls
BUILDING ELEVATORS Shafts and Doorways
ea
Cabs
ea
Controller/Dispatcher
ea
Machine Room Equipment
ea
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Not Applicable - No elevators at development
Page 30
Projected Capital Needs Over Twenty Years
Bracken Woods BUILDING MECHANICAL AND ELECTRICAL
Costs projected at 3%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
BUILDING MECHANICAL $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,831
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,217
$0
$0
$0
$0
$0
$0
$0
$0
$0
$7,011
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$6,048
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
BUILDING ELECTRICAL $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
BUILDING ELEVATORS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 31
Bracken Woods BUILDING ARCHITECTURE Replacement Items
(Expected Useful life)
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
4,962 lf
$0
20
50
1 ls
$0
20
70
Quantity
Notes
STRUCTURE Foundation Framing Slab
sf
Miscellaneous
ea
Masonry block foundaitons No probblems observed or reported; Monitor Wood framing No probblems observed or reported; Monitor
BUILDING EXTERIOR Exterior Common Doors
Replacement of entry doors at office/laundry bldgs in SOW $0
0
30
300.00
$10,500
varies
30
6
ea 104 ttl 52 ea
750.00
$39,000
20
35
16
Service Doors
70 ea
300.00
$21,000
20
25+
6
Entry Canopy
52 ea
$0
20
20
Exterior Unit Doors Storm Doors Glass Sliding Doors
2 ea 104 ttl 35 ea
Exterior Walls
90,996 sf
0.20
$18,199
0
5
6
Exterior Walls
90,996 sf
2.50
$227,490
20
35
over 15 Years
in
1 Year
over 15 Years
/11
in
1 Year
16
in
1 Year
in
1 Year
Monitor and maintain new doors going forward As-needed replacement, repair, and painting of all in SOW Allowances for gradual replacement of others in future
As-needed replacement and/or repair of 52 doors in SOW Allowances for additional replacement and/or repair needs in future Mix of single and double leaf steel doors at mechanical closets, etc. Generally good conditions; Allow's for gradual replacement in future Post repl., as-needed repairs, and painting/cladding in SOW Modest allowances for potential future repair/painting needs Pressure washing of all vinyl siding, trim and soffits in SOW Allowances to complete similar pressure washing cycles in future
Unit Balconies
32 ea
$0
0
20
Balcony Railings
32 ea
$0
0
20
Future replacement of vinyl siding, trim, soffits, etc. Vinyl and aluminum elements Periodic pressure washing and future replacement needs included above Vented vinyl paneling at entries Periodic pressure washing and future replacement needs included above Vinyl-framed slider-style units No operational problems noted; Future replacement As-needed replacement of fogged/broken glazing panels in SOW Allowances for future replacement needs Integral screens Generally good condition; Future allow's for replacement as needed Concrete patios Isolated cracks but no significant displacement; Future repair allow's Replacement of existing wood balconies in SOW Monitor and maintain new materials going forward As-needed repair/replacement of exsting wood railings in SOW Allowances for potential future repair and/or replacement needs
$0
varies
15
Unit entry and porch/balcony fixtures Replacement included with siding above
Trim, Soffit & Fascia
1 ls
$0
20
35
Exterior Ceilings
1 ls
$0
20
35
Window Frames
290 ea
450.00
$130,500
20
35
16
Window Glass
290 ea
75.00
$21,750
varies
15
6
over 10 Years
Storm / Screen Windows
290 ea 72 ttl 1 ls
35.00
$10,150
varies
15
6
over 10 Years
2000.00
$2,000
20
20+
3
Patios
Fire Escapes Bldg Mounted Lighting
/8
/13 /18
in
1 Year
ea 160 ea
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 32
Projected Capital Needs Over Twenty Years
Bracken Woods BUILDING ARCHITECTURE
Costs projected at 3%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
STRUCTURE $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
BUILDING EXTERIOR $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$811
$836
$861
$887
$913
$941
$969
$998
$1,028
$1,059
$1,091
$1,123
$1,157
$1,192
$1,227
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$60,761
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,623
$1,672
$1,722
$1,773
$1,827
$1,881
$1,938
$1,996
$2,056
$2,118
$2,181
$2,247
$2,314
$2,383
$2,455
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$21,098
$0
$0
$0
$0
$24,458
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$354,422
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$203,315
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,521
$2,597
$2,675
$2,755
$2,838
$2,923
$3,011
$3,101
$3,194
$3,290
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,177
$1,212
$1,248
$1,286
$1,324
$1,364
$1,405
$1,447
$1,491
$1,535
$0
$0
$0
$0
$0
$0
$0
$2,122
$0
$0
$0
$0
$2,460
$0
$0
$0
$0
$2,852
$0
$0
$0
$0
$3,306
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 33
Bracken Woods BUILDING ARCHITECTURE--continued Replacement Items
Quantity
(Expected Useful life)
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
Notes
ROOF SYSTEMS Structure
88,588 sf
$0
20
40
Roof Covering
88,588 sf
$0
0
20
Pitched wood trusses and sheathing No problems observed or reported; Monitor Replacement of all existing roof shingles in SOW Monitor new shingles going forward
Roof Covering
sf
Roof Covering
sf
Roof Drainage
8,066 lf
$0
0
30
Replacement of existing aluminum gutters in SOW Monitor and maintain new gutters going forward
Skylights
ea
Penthouses
ea
Access Doors & Hatches
ea
Roof Railings
lf
HALLS Hallway Walls
sf
Hallway Ceilings
sf
Hallway Floors
sf
Hallway Doors
ea
Hallway Railings
lf
Hallway Interior Lighting
ea
Hallway Heating
ea
Miscellaneous
ea
STAIRS Stair Walls/Ceilings
sf
Stair Floors
sf
Stair Doors
ea
Stair Railings
sf
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 34
Projected Capital Needs Over Twenty Years
Bracken Woods BUILDING ARCHITECTURE--continued
Costs projected at 3%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
ROOF SYSTEMS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
HALLS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
STAIRS
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 35
Bracken Woods BUILDING ARCHITECTURE--continued Replacement Items
Quantity
(Expected Useful life)
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
Notes
LOBBIES/MAIL FACILITIES Lobby Walls/Ceilings
sf
Lobby Floors
sf
Lobby Floors
sf
Mail Facilities
ea
Lobby Local HV
ea
COMMUNITY ROOM Cmnty Room Walls/Ceilings
sf
Cmnty Room Floor Covering
sf
Cmnty Cabinets/Countertop
ea
Cmnty Kitchen Appliances
ea
Cmnty Room Furnishings
ea
OFFICE
Initial painting cycle included in SOW
Office Walls/Ceilings
1,056 sf
0.55
$581
0
10
11
in
1 Year
Office Floors
60 sf
5.00
$300
0
15
16
in
1 Year
Office Floors
203 sf
2.25
$457
0
10
11
in
1 Year
1,188 sf
0.55
$653
0
10
11
in
1 Year
324 sf
2.62
$849
8
15
7
in
1 Year
$0
20
20
PUBLIC LAUNDRY Laundry Walls/Ceilings Laundry Floors Laundry Equipment
Initial painting cycle included in SOW
1 ls
Restroom Floors
Allowances for future painting Vinyl composition tile (VCT) No significant wear or deterioration noted; Future replacement Washers and dryers owned/mainted by third-party vendor
PUBLIC RESTROOMS Restroom Walls/Ceilings
Allowances for future painting Replacement of existing vinyl composition tile (VCT) in SOW Future replacement cycle for VCT flooring Replacement of existing carpet in SOW Future replacement cycle for carpet flooring
Initial painting cycle included in SOW 272 sf
0.55
$150
0
10
11
in
1 Year
48 sf
2.62
$126
8
15
7
in
1 Year
Restroom Fixtures
1 ls
$0
20
30+
Restroom Accessories
1 ls
$0
20
30+
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Allowances for future painting Vinyl composition tile (VCT) Generally good condition; Future replacement Toilet and wall-mounted sink Good overall condition; Monitor and maintain Typical dispensers and receptacles Good overall condition; Monitor and maintain
Page 36
Projected Capital Needs Over Twenty Years
Bracken Woods BUILDING ARCHITECTURE--continued
Costs projected at 3%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
LOBBIES/MAIL FACILITIES $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
COMMUNITY ROOM $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
OFFICE $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$781
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$467
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$614
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$878
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,014
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
PUBLIC LAUNDRY
PUBLIC RESTROOMS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$201
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$150
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 37
Bracken Woods DWELLING UNITS Replacement Items
(Expected Useful life)
Quantity
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
Notes
LIVING AREA FINISHES Unit Hallway Doors
ea As-needed repl. of existing hollow core wood doors in SOW Monitor and maintain new doors going forward As-needed repl. of existing hollow core wood bi-fold doors in SOW Monitor and maintain new doors going forward Texture painted drywall Generally good condition; Monitor and maintain going forward Texture painted drywall Generally good condition; Maintain concurrent with walls As-needed replacement of existing carpet flooring in SOW Allowances for future replacement of all based on expected useful life Vinyl at entry area of some units Conditions vary; Replace concurrent with carpet Carpeted treads and risers at second floor garden and all townhouse units Carpet replacement included with living area floors above
Unit Interior Doors
344 ea
$0
varies
25
Unit Closet Doors
576 ea
$0
varies
25
Living Area Walls
255,040 sf
$0
varies
5
Living Area Ceilings
84,248 sf
$0
varies
5
Living Area Floors
80,202 sf
1.75
$140,354
varies
7
4
/11 /18
over 7 Years
Living Area Floors
4,046 sf
2.62
$10,601
varies
10
5
/15
over 10 Years
Unit Interior Stairs
76 ea
$0
20
20
36,848 sf
$0
varies
5
$20,415
varies
10
$0
0
20
1850.00
$96,200
20
20+
6
over 5 Years
375.00
$19,500
varies
10
11
over 25 Years
Texture painted drywall Good overall condition; Paint and maintain going forward As-needed replacement of existing vinyl flooring in SOW Allowances for future replacement of all based on expected useful life Laminated particleboard cabinets - Replacment of 50% in SOW Monitor and maintain new cabinetry going forward Laminated particleboard cab's in units not included as part of SOW Good overall condition; Future replacement including counters and sinks Replacement of 50% of existing laminate countertops in SOW Allowances for future as-needed replacement of countertops only
400.00
$41,600
varies
15+
12
over 10 Years
Repl. of 68 30" electric ranges based on age/condition in SOW Gradual replacement cycle in future for all ranges
Repl. of 52 existing refrigerators based on age/condition in SOW Gradual replacement cycle in future for all refrigerators
KITCHENS Kitchen Walls/Ceilings Kitchen Floors
7,792 sf
Kitchen Cabinets
52 ea
Kitchen Cabinets Kitchen Countertop
52 ea 104 ttl 52 ea
Kitchen Countertop
ea
Range
104 ea
Range
ea
2.62
5
/15
over 10 Years
Refrigerator
104 ea
475.00
$49,400
varies
15
8
over 15 Years
Refrigerator Rangehood and Vent
ea 104 ttl 52 ea
110.00
$5,720
20
25
6
over 5 Years
Disposal
104 ea
90.00
$9,360
varies
7
1
/8
Dishwasher
104 ea
325.00
$33,800
varies
10
6
/16
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
/15
over 7 Years over 10 Years
Replacement of 50% of existing recirculating hoods in SOW Replace remaining 50% concurrent w/cabinetry not included in SOW Fractional horsepower disposals Annual allowances for replacement as needed As-needed replacement of existing built-in models in SOW Allowances for future gradual replacement cycles for all dishwashers
Page 38
Projected Capital Needs Over Twenty Years
Bracken Woods
Costs projected at 3%
DWELLING UNITS
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
LIVING AREA FINISHES $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$21,910
$22,567
$23,244
$23,941
$24,660
$25,399
$26,161
$26,946
$27,755
$28,587
$29,445
$30,328
$31,238
$32,175
$33,140
$34,135
$35,159
$0
$0
$0
$0
$1,193
$1,229
$1,266
$1,304
$1,343
$1,383
$1,425
$1,467
$1,511
$1,557
$1,603
$1,652
$1,701
$1,752
$1,805
$1,859
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
KITCHENS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,298
$2,367
$2,438
$2,511
$2,586
$2,664
$2,744
$2,826
$2,911
$2,998
$3,088
$3,181
$3,276
$3,374
$3,476
$3,580
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$22,304
$22,974
$23,663
$24,373
$25,104
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,048
$1,080
$1,112
$1,145
$1,180
$1,215
$1,252
$1,289
$1,328
$1,368
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,758
$5,931
$6,109
$6,292
$6,481
$6,676
$6,876
$7,082
$7,295
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,050
$4,172
$4,297
$4,426
$4,559
$4,696
$4,836
$4,981
$5,131
$5,285
$5,443
$5,607
$5,775
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,326
$1,366
$1,407
$1,449
$1,493
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,337
$1,377
$1,419
$1,461
$1,505
$1,550
$1,597
$1,645
$1,694
$1,745
$1,797
$1,851
$1,906
$1,964
$2,023
$2,083
$2,146
$2,210
$2,276
$2,345
$0
$0
$0
$0
$0
$3,918
$4,036
$4,157
$4,282
$4,410
$4,542
$4,679
$4,819
$4,964
$5,113
$5,266
$5,424
$5,587
$5,754
$5,927
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 39
Bracken Woods DWELLING UNITS--continued
(Expected Useful life)
Cost per unit
Total Cost
AGE
EUL
Replacement Schedule
in 2015 $$
in 2015 $$
(Years)
(Years)
Year of action AND duration of project
45,312 sf
$0
varies
5
Bathroom Ceilings
9,856 sf
$0
varies
5
Bathroom Floors
9,856 sf
2.62
$25,823
0
10
8
350.00
$70,000
20
25
6
over 25 Years
over 5 Years
Replacement Items
Quantity
Notes
BATHROOMS Bathroom Walls
Bath-tub and Shower
200 ea
Bathroom Vanties and Sinks
192 ea
$0
0
20
8 ea
$0
20
25+
Bathroom Toilets
200 ea
$0
0
30
Medicine Cabinets
200 ea
60.00
$12,000
20
25
6
Accessories
200 ea
50.00
$10,000
20
25
6
Ventilation & Exhaust
200 ea
95.00
$19,000
varies
15
6
$0
0
20
Bathroom Sinks
/18
over 10 Years
in
1 Year
over 15 Years
Texture painted drywall with ceramic tile bathtub surrounds Good overall condition; Paint and maintain going forward Texture painted drywall Good overall condition; Paint and maintain concurrent with walls Replacement of existing vinyl flooring in SOW Allowances for future replacement of all based on expected useful life Fiberglass bathtubs w/ceramic tile surrounds and anti-scald mixing valves Future allowances for resurfacing, tile repairs, mixing valves, etc. Replacement of existing LPB vanities and inset sinks in SOW Monitor and maintain new vanities and sinks going forward Wall-mounted vitreous china sinks in barrier free units No problems observed or reported; Monitor and maintain Repl. of existing vitreous china toilets w/low-flow models in SOW Monitor and maintain new toilets going forward Recessed plastic cabinets with mirrored doors Good overall condition; Allowances for gradual replacement in future Metal towel rails Good overall condition; Replace concurrent w/medicine cab's in future Replacement of 25 existing ceiling-mounted exhaust fans in SOW Future allow's for gradual replacement of all based on expected useful life
IN-UNIT MECHANICAL Unit Air Handlers
104 ea
Unit Thermostats
104 ea
75.00
$7,800
0
15
16
Unit DHW Generation
104 ea
450.00
$46,800
0
8
6
Unit Air Conditioning
104 ea
1100.00
$114,400
0
15
16
Unit Radiation
over 10 Years /14
over 8 Years over 10 Years
Repl. of existing AHUs w/wet loop fed from DHW tank in SOW Monitor and maintain new air handler units going forward Replacement of existing wall-mounted thermostats in SOW Future replacement of new thermostats Replacement of existing 40-50 gal. gas-fired DHW tanks in SOW Future replacement of new DHW tanks Replacement of existing thru-wall condenser units in SOW Allowances for future replacement of new air conditioners
lf
IN-UNIT ELECTRICAL Unit Electrical Panel
104 ea
$0
20
30
Circuit breaker panels No problems observed or reported; Monitor
Unit Wiring
104 ea
$0
20
30
No problems observed or reported; Monitor
$13,000
0
10
Unit Security Call System Unit Smoke / Fire Detection Miscellaneous
ea 104 un
125.00
11
over 10 Years
Replacement of existing hardwired smoke/fire detectors in SOW Future allowances for gradual replacement of all devices
ea
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 40
Projected Capital Needs Over Twenty Years
Bracken Woods DWELLING UNITS--continued
Costs projected at 3%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
BATHROOMS $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,176
$3,271
$3,369
$3,470
$3,574
$3,682
$3,792
$3,906
$4,023
$4,144
$4,268
$4,396
$4,528
$0
$0
$0
$0
$0
$3,246
$3,343
$3,444
$3,547
$3,653
$3,763
$3,876
$3,992
$4,112
$4,235
$4,362
$4,493
$4,628
$4,767
$4,910
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,782
$2,866
$2,952
$3,040
$3,131
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$11,593
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,468
$1,512
$1,558
$1,605
$1,653
$1,702
$1,753
$1,806
$1,860
$1,916
$1,973
$2,033
$2,094
$2,156
$2,221
IN-UNIT MECHANICAL $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,215
$1,252
$1,289
$1,328
$1,368
$0
$0
$0
$0
$0
$6,782
$6,985
$7,195
$7,411
$7,633
$7,862
$8,098
$8,341
$8,591
$8,849
$9,114
$9,388
$9,669
$9,959
$10,258
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$17,823
$18,358
$18,909
$19,476
$20,060
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
IN-UNIT ELECTRICAL $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,747
$1,800
$1,853
$1,909
$1,966
$2,025
$2,086
$2,149
$2,213
$2,280
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 41
Evaluator's Summary
© 0N-SITE INSIGHT, INC.
Page_42__ of__52__
13-Feb-15
Physical Needs Over The Term PROJECT: ADDRESS(ES):
Bracken Woods
DEVELOPMENT AGE:
5301 Dublin Avenue, Midland, MI
MORTGAGE TERM: ELDERLY:
# OF UNITS: 104
20 years
# BUILDINGS: 15
FAMILY:
No Yes
COST BY YEAR ITEM
QUANTITY
UNIT COST
2015 Year 1
2016 Year 2
2017 Year 3
2018 Year 4
2019 Year 5
2020 Year 6
2021 Year 7
2022 Year 8
2023 Year 9
2024 Year 10
Crack-Fill and Sealcoat
96,115 sf
0.22
$0
$0
$0
$0
$0
$24,513
$0
$0
$0
$0
Sidewalks
62,960 sf
0.05
$0
$0
$0
$3,440
$0
$0
$3,759
$0
$0
$4,107
1 ls
750.00
$0
$0
$0
$0
$0
$869
$0
$0
$0
$0
Dumpster Enclosures
61 lf
50.00
$0
$0
$0
$0
$0
$0
$0
$3,751
$0
$0
Site Lighting
32 ea
450.00
$0
$0
$1,910
$1,967
$2,026
$2,087
$2,149
$2,214
$2,280
$2,349
Landscaping
1 ls
3,500.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Carports
1 ls
7,500.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Maintenance Shed
1 ea
500.00
$0
$0
$0
$0
$0
$580
$0
$0
$0
$0
Landscape Irrigation
1 ls
3,000.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Building Air Conditioning
1 ea
1,175.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Domestic Hot Water Generation
1 ea
4,500.00
$0
$0
$0
$0
$0
$5,217
$0
$0
$0
$0
Domestic Hot Water Generation
1 ea
4,500.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Exterior Unit Doors
35 ea
300.00
$0
$0
$0
$0
$0
$811
$836
$861
$887
$913
Glass Sliding Doors
52 ea
750.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Service Doors
70 ea
300.00
$0
$0
$0
$0
$0
$1,623
$1,672
$1,722
$1,773
$1,827
$0
$0
$1,910
$5,407
$2,026
$35,700
$8,416
$8,548
$4,940
$9,196
Retaining Walls
TOTAL INFLATED
Evaluator's Summary
© 0N-SITE INSIGHT, INC.
Page_43__ of__52__
13-Feb-15
Physical Needs Over The Term PROJECT: ADDRESS(ES):
Bracken Woods
DEVELOPMENT AGE:
5301 Dublin Avenue, Midland, MI
MORTGAGE TERM: ELDERLY:
# OF UNITS: 104
# BUILDINGS: 15
FAMILY:
20 years 0 years No Yes
COST BY YEAR ITEM
Crack-Fill and Sealcoat
2025 Year 11
2026 Year 12
2027 Year 13
2028 Year 14
2029 Year 15
2030 Year 16
2031 Year 17
2032 Year 18
2033 Year 19
2034 Year 20
$28,418
$0
$0
$0
$0
$32,944
$0
$0
$0
$0
$0
$0
$4,488
$0
$0
$4,904
$0
$0
$5,359
$0
$1,008
$0
$0
$0
$0
$1,168
$0
$0
$0
$0
Dumpster Enclosures
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Site Lighting
$0
$0
$2,566
$2,643
$2,723
$2,804
$2,888
$2,975
$3,064
$3,156
Landscaping
$4,704
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,079
$0
$0
$0
$0
$0
$0
$0
$0
$0
$672
$0
$0
$0
$0
$779
$0
$0
$0
$0
$1,344
$1,384
$1,426
$0
$0
$0
$0
$0
$0
$0
Building Air Conditioning
$0
$0
$0
$0
$0
$1,831
$0
$0
$0
$0
Domestic Hot Water Generation
$0
$0
$0
$0
$0
$7,011
$0
$0
$0
$0
Domestic Hot Water Generation
$6,048
$0
$0
$0
$0
$0
$0
$0
$0
$0
Exterior Unit Doors
$941
$969
$998
$1,028
$1,059
$1,091
$1,123
$1,157
$1,192
$1,227
Glass Sliding Doors
$0
$0
$0
$0
$0
$60,761
$0
$0
$0
$0
$1,881
$1,938
$1,996
$2,056
$2,118
$2,181
$2,247
$2,314
$2,383
$2,455
$55,094
$4,291
$11,475
$5,727
$5,899
$115,474
$6,258
$6,446
$11,999
$6,839
Sidewalks Retaining Walls
Carports Maintenance Shed Landscape Irrigation
Service Doors
TOTAL INFLATED
Evaluator's Summary
© 0N-SITE INSIGHT, INC.
Page_44__ of__52__
13-Feb-15
Physical Needs Over The Term PROJECT: ADDRESS(ES):
Bracken Woods
DEVELOPMENT AGE:
5301 Dublin Avenue, Midland, MI
MORTGAGE TERM: ELDERLY:
# OF UNITS: 104
20 years
# BUILDINGS: 15
FAMILY:
No Yes
COST BY YEAR ITEM
QUANTITY
UNIT COST
2015 Year 1
2016 Year 2
2017 Year 3
2018 Year 4
2019 Year 5
2020 Year 6
2021 Year 7
2022 Year 8
2023 Year 9
2024 Year 10
Exterior Walls
90,996 sf
0.20
$0
$0
$0
$0
$0
$21,098
$0
$0
$0
$0
Exterior Walls
90,996 sf
2.50
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Window Frames
290 ea
450.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Window Glass
290 ea
75.00
$0
$0
$0
$0
$0
$2,521
$2,597
$2,675
$2,755
$2,838
Storm / Screen Windows
290 ea
35.00
$0
$0
$0
$0
$0
$1,177
$1,212
$1,248
$1,286
$1,324
1 ls
2,000.00
$0
$0
$2,122
$0
$0
$0
$0
$2,460
$0
$0
1,056 sf
0.55
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Office Floors
60 sf
5.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Office Floors
203 sf
2.25
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
1,188 sf
0.55
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Laundry Floors
324 sf
2.62
$0
$0
$0
$0
$0
$0
$1,014
$0
$0
$0
Restroom Walls/Ceilings
272 sf
0.55
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
48 sf
2.62
$0
$0
$0
$0
$0
$0
$150
$0
$0
$0
Living Area Floors
80,202 sf
1.75
$0
$0
$0
$21,910
$22,567
$23,244
$23,941
$24,660
$25,399
$26,161
Living Area Floors
4,046 sf
2.62
$0
$0
$0
$0
$1,193
$1,229
$1,266
$1,304
$1,343
$1,383
Kitchen Floors
7,792 sf
2.62
$0
$0
$0
$0
$2,298
$2,367
$2,438
$2,511
$2,586
$2,664
$0
$0
$2,122
$21,910
$26,058
$51,636
$32,618
$34,857
$33,369
$34,370
Patios Office Walls/Ceilings
Laundry Walls/Ceilings
Restroom Floors
TOTAL INFLATED
Evaluator's Summary
© 0N-SITE INSIGHT, INC.
Page_45__ of__52__
13-Feb-15
Physical Needs Over The Term PROJECT: ADDRESS(ES):
Bracken Woods
DEVELOPMENT AGE:
5301 Dublin Avenue, Midland, MI
MORTGAGE TERM: ELDERLY:
# OF UNITS: 104
# BUILDINGS: 15
FAMILY:
20 years 0 years No Yes
COST BY YEAR ITEM
2025 Year 11
2026 Year 12
2027 Year 13
2028 Year 14
2029 Year 15
2030 Year 16
2031 Year 17
2032 Year 18
2033 Year 19
2034 Year 20
Exterior Walls
$24,458
$0
$0
$0
$0
$0
$0
$0
$0
$0
Exterior Walls
$0
$0
$0
$0
$0
$354,422
$0
$0
$0
$0
Window Frames
$0
$0
$0
$0
$0
$203,315
$0
$0
$0
$0
Window Glass
$2,923
$3,011
$3,101
$3,194
$3,290
$0
$0
$0
$0
$0
Storm / Screen Windows
$1,364
$1,405
$1,447
$1,491
$1,535
$0
$0
$0
$0
$0
$0
$0
$2,852
$0
$0
$0
$0
$3,306
$0
$0
$781
$0
$0
$0
$0
$0
$0
$0
$0
$0
Office Floors
$0
$0
$0
$0
$0
$467
$0
$0
$0
$0
Office Floors
$614
$0
$0
$0
$0
$0
$0
$0
$0
$0
Laundry Walls/Ceilings
$878
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$201
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Living Area Floors
$26,946
$27,755
$28,587
$29,445
$30,328
$31,238
$32,175
$33,140
$34,135
$35,159
Living Area Floors
$1,425
$1,467
$1,511
$1,557
$1,603
$1,652
$1,701
$1,752
$1,805
$1,859
Kitchen Floors
$2,744
$2,826
$2,911
$2,998
$3,088
$3,181
$3,276
$3,374
$3,476
$3,580
$62,333
$36,464
$40,409
$38,684
$39,845
$594,274
$37,152
$41,573
$39,415
$40,597
Patios Office Walls/Ceilings
Laundry Floors Restroom Walls/Ceilings Restroom Floors
TOTAL INFLATED
Evaluator's Summary
© 0N-SITE INSIGHT, INC.
Page_46__ of__52__
13-Feb-15
Physical Needs Over The Term PROJECT: ADDRESS(ES):
Bracken Woods
DEVELOPMENT AGE:
5301 Dublin Avenue, Midland, MI
MORTGAGE TERM: ELDERLY:
# OF UNITS: 104
20 years
# BUILDINGS: 15
FAMILY:
No Yes
COST BY YEAR ITEM
QUANTITY
UNIT COST
2015 Year 1
2016 Year 2
2017 Year 3
2018 Year 4
2019 Year 5
2020 Year 6
2021 Year 7
2022 Year 8
2023 Year 9
2024 Year 10
Kitchen Cabinets
52 ea
1,850.00
$0
$0
$0
$0
$0
$22,304
$22,974
$23,663
$24,373
$25,104
Kitchen Countertop
52 ea
375.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Range
104 ea
400.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Refrigerator
104 ea
475.00
$0
$0
$0
$0
$0
$0
$0
$4,050
$4,172
$4,297
52 ea
110.00
$0
$0
$0
$0
$0
$1,326
$1,366
$1,407
$1,449
$1,493
Disposal
104 ea
90.00
$1,337
$1,377
$1,419
$1,461
$1,505
$1,550
$1,597
$1,645
$1,694
$1,745
Dishwasher
104 ea
325.00
$0
$0
$0
$0
$0
$3,918
$4,036
$4,157
$4,282
$4,410
9,856 sf
2.62
$0
$0
$0
$0
$0
$0
$0
$3,176
$3,271
$3,369
Bath-tub and Shower
200 ea
350.00
$0
$0
$0
$0
$0
$3,246
$3,343
$3,444
$3,547
$3,653
Medicine Cabinets
200 ea
60.00
$0
$0
$0
$0
$0
$2,782
$2,866
$2,952
$3,040
$3,131
Accessories
200 ea
50.00
$0
$0
$0
$0
$0
$11,593
$0
$0
$0
$0
Ventilation & Exhaust
200 ea
95.00
$0
$0
$0
$0
$0
$1,468
$1,512
$1,558
$1,605
$1,653
Unit Thermostats
104 ea
75.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Unit DHW Generation
104 ea
450.00
$0
$0
$0
$0
$0
$6,782
$6,985
$7,195
$7,411
$7,633
Unit Air Conditioning
104 ea
1,100.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Unit Smoke / Fire Detection
104 un
125.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
TOTAL INFLATED
$1,337
$1,377
$1,419
$1,461
$1,505
$54,970
$44,679
$53,245
$54,843
$56,488
TOTAL INFLATED-ALL PAGES
$1,337
$1,377
$5,450
$28,778
$29,589
$142,306
$85,712
$96,650
$93,153
$100,055
CUMULATIVE TOTAL-ALL PAGES
$1,337
$2,714
$8,164
$36,942
$66,531
$208,837
$294,549
$391,199
$484,352
$584,406
Rangehood and Vent
Bathroom Floors
Evaluator's Summary
© 0N-SITE INSIGHT, INC.
Page_47__ of__52__
13-Feb-15
Physical Needs Over The Term PROJECT: ADDRESS(ES):
Bracken Woods
DEVELOPMENT AGE:
5301 Dublin Avenue, Midland, MI
MORTGAGE TERM: ELDERLY:
# OF UNITS: 104
# BUILDINGS: 15
FAMILY:
20 years 0 years No Yes
COST BY YEAR ITEM
Kitchen Cabinets
2025 Year 11
2026 Year 12
2027 Year 13
2028 Year 14
2029 Year 15
2030 Year 16
2031 Year 17
2032 Year 18
2033 Year 19
2034 Year 20
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,048
$1,080
$1,112
$1,145
$1,180
$1,215
$1,252
$1,289
$1,328
$1,368
$0
$5,758
$5,931
$6,109
$6,292
$6,481
$6,676
$6,876
$7,082
$7,295
$4,426
$4,559
$4,696
$4,836
$4,981
$5,131
$5,285
$5,443
$5,607
$5,775
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Disposal
$1,797
$1,851
$1,906
$1,964
$2,023
$2,083
$2,146
$2,210
$2,276
$2,345
Dishwasher
$4,542
$4,679
$4,819
$4,964
$5,113
$5,266
$5,424
$5,587
$5,754
$5,927
Bathroom Floors
$3,470
$3,574
$3,682
$3,792
$3,906
$4,023
$4,144
$4,268
$4,396
$4,528
Bath-tub and Shower
$3,763
$3,876
$3,992
$4,112
$4,235
$4,362
$4,493
$4,628
$4,767
$4,910
Medicine Cabinets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Accessories
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,702
$1,753
$1,806
$1,860
$1,916
$1,973
$2,033
$2,094
$2,156
$2,221
$0
$0
$0
$0
$0
$1,215
$1,252
$1,289
$1,328
$1,368
Unit DHW Generation
$7,862
$8,098
$8,341
$8,591
$8,849
$9,114
$9,388
$9,669
$9,959
$10,258
Unit Air Conditioning
$0
$0
$0
$0
$0
$17,823
$18,358
$18,909
$19,476
$20,060
$1,747
$1,800
$1,853
$1,909
$1,966
$2,025
$2,086
$2,149
$2,213
$2,280
TOTAL INFLATED
$30,358
$37,027
$38,138
$39,282
$40,461
$60,713
$62,534
$64,411
$66,343
$68,333
TOTAL INFLATED-ALL PAGES
$147,786
$77,782
$90,022
$83,694
$86,205
$770,461
$105,945
$112,429
$117,756
$115,769
CUMULATIVE TOTAL-ALL PAGES
$732,192
$809,974
$899,996
$983,690
$1,069,894
$1,840,356
$1,946,301
$2,058,730
$2,176,486
$2,292,255
Kitchen Countertop Range Refrigerator Rangehood and Vent
Ventilation & Exhaust Unit Thermostats
Unit Smoke / Fire Detection
MSHDA Preservation Scope of Work For:
BRACKEN WOODS Description of Item
Replacement Items - Quantity?
Planned Additions Quantity?
Notes
SITE SYSTEMS Surface Roadways/Parking Roadways/Parking Storm Drains Sidewalks Play Equipment Mail Facilities Dumpsters & Enclosures Flower Boxes Site Lighting Site Lighting Landscaping Car Ports Car Ports - Lighting Signage Site Distribution Systems Gas Lines Sanitary Lines Cold Water Lines Electric Distribution Sanitary Leach fields Miscelleneous
96,115 sf
Resurface, mill, grind as necessary
TBD
Repair/Repalce as needed 3
1 LS 61 lf 3
1 LS 2
Replace original kiosks Repaint, repair Repair/Replace
regrade as necessary reset footings 1
1 LS
New Monument Sign
Replace, as needed, irrigation controllers
BUILDING MECHANICAL & ELECTRICAL Building Mechanical Compactors Building Fire Suppression Building Heating Distribution Domestic Hot/Cold Water Dist. Building Sanitary Waste & Vent. Dist. Building Gas Distribution Warm Air Furnace Building Air Conditioning Domestic Hot Water Generation Domestic Hot Water Generation Domestic Hot Water Generation Sewage Ejectors
1 1
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Replace original Replace 84 gal tank serving bldg 1
Page 48
Building Electrical Building Power Wiring Emergency Generator Fire Alarm Systems Signaling / Communication Signaling / Communication Pool Filter Equipment Filter Pump Auto Chlorinator Cover
BUILDING ARCHITECTURE Structure Foundation Framing Slab Miscellaneous Building Exterior Exterior Common Doors Exterior Unit Doors Service Doors Glass Sliding Doors Storm Doors Exterior Walls--1 Exterior Walls--2 Exterior Walls--3 Trim, Soffit & Fascia Entry Canopy Window Frames--1 Window Frames--2 Window Glass Storm / Screen Windows Unit Balconies/Wood Decks Balcony Railings Fire Escapes Bldg Mounted Lighting Roof Systems Structure Roof Covering--1 Roof Covering--2 Roof Covering--3 Roof Drainage
2 104 52 90996 sf
New entry doors at Bldgs 11 an 12 Repair, repaint, replace as required Repair/replace as needed part of SOW power was (includes trim and soffit
52
290 32 32
Replace post, paint/repair wood and/or wrap
Replace fogged or broken glass where needed Replace 2nd floor decks Repair/replace as needed
88,588 sf
Replace
8,066 lf
Replace with roof replacement
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 49
Skylights Penthouses Access Doors & Hatches Roof Railings Halls Hallway Walls Hallway Ceilings Hallway Floors Hallway Doors Hallway Railings Hallway Interior Lighting Hallway Heating Miscellaneous Stairs Stair Walls and Ceilings Stair Floors Stair Doors Stair Railings Lobbies/Mail Facilities Lobby Walls & Ceilings Lobby Floors Lobby Floors Mail Facilities Lobby Local HV Community Room Comm. Room Walls/Ceilings Comm. Room Floor Covering Comm. Cabinets/Countertop Comm. Kitchen Appliances Comm. Room Furnishings Office Office Walls/Ceilings Office Floor Covering Office Equipment Public Laundry Laundry Walls/Ceilings Laundry Floors Laundry Equipment Public Restrooms Restroom Walls/Ceilings Restroom Floors Restroom Fixtures Restroom Accessories
1,056 sf 263 sf
repaint replace VCT and carpet
1,118 sf
repaint
272 sf
repaint
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 50
DWELLING UNITS Living Area Finishes Unit Hallway Doors Unit Interior Doors Unit Closet Doors Living Area Walls Living Area Ceilings Living Area Floors Unit Interior Stairs Blinds Kitchens Kitchen Walls & Ceilings Kitchen Floors Kitchen Cabinets Kitchen Countertop Range Range Refrigerator Refrigerator Dishwasher Dishwasher Rangehood and Vent Disposal Disposal Bathrooms Bathroom Walls and Surrounds Bathroom Ceilings Bathroom Floors Bath-tub and Shower Bathroom Vanity & Sink Bathroom Vanity & Sink Toilets Medicine Cabinets Accessories Ventilation & Exhaust In-Unit Mechanical Unit Warm Air Furnaces Unit Thermostats Unit Air Conditioning Unit Air Conditioning DHW Generation
344 max. 576
80,802sf
36,848 sf 7,792 sf 104 104 34 34
Replace as needed replace as needed painting, as needed, to be done by operations paint, as needed,to be done by operations Replace carpet as needed
paint and maintain from operations Vinyl to be replaced as needed replace based on age and condition replace based on age and condition Replace based on age Replace based on age
104
Replace as needed based on age and condition
104 104
Replace concurrent with cabinetry; say 52 as part of SOW Replace
9,856 sf 9,856 sf
paint as needed by operations replace vinyl 192
replace concurrent with cabinetry
200
replace with low flush
200
replace noisy nits; say 25 during SOW
104 104
Repalce Replace
104
Replace Repalce
104 total
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 51
In-Unit Electrical Unit Electrical Panel Unit Wiring Lighting Unit Smoke / Fire Detection Washer/Dryers
104
Replace
Approvals:
Matt Bergeon, Asset Management
Date
Maryanne Vukonich, Design
Date
Contractor
Date
Bracken Woods ● Capital Needs Assessment ● © On-Site Insight
Page 52
This report and analysis are based upon observations for the visible and apparent condition of the building and its major components on the date of the fieldwork. Although care has been taken in the performance of this assessment, ON-SITE INSIGHT, Inc. (and/or its representatives) makes no representations regarding latent or concealed defects that may exist and no warranty or guarantee is expressed or implied. This report is made only in the best exercise of our ability and judgment. Conclusions in this report are based on estimates of the age and normal working life of various items of equipment and/or statistical comparisons. It is essential to understand that actual conditions can alter the useful life of any item. The previous use/misuse, irregularity of servicing, faulty manufacture, unfavorable conditions, acts of God and unforeseen circumstances make it impossible to state precisely when each item would require replacement. The client herein should be aware that certain components within the above referenced property might function consistent with their purpose at the time of the observation, but due to their nature are subject to deterioration without notice. Unless otherwise noted, all building components are assumed to meet the building code requirements in force at the time of construction. Conclusions reached in this report assume responsible ownership and competent management of the property. Information provided to us by others is believed reliable, but we assume no responsibility for accuracy thereof.
Receiving a Paym... - 69 of 73
COMPANY BACKGROUND Lockwood Development specializes in the development and production of senior housing, new and rehabilitated multi-family housing and condominiums. Lockwood Development was established in 1987 and its staff has been directly involved in the development of over 5,100 residential units. The mission of Lockwood Development is to develop communities that offer an outstanding value for its residents and a sound financial return for the Company’s investors. To accomplish that mission, Lockwood Development has assembled an internal team of individuals with exceptional talent in planning, design, construction, marketing and property management. The Company has also developed close, long-standing relationships with leading third-party professionals in the fields of market research, land planning, landscape architecture, civil engineering, architectural design, environmental assessment, interior design, construction and product marketing. Within a structured framework of financial control, Lockwood Development directs this diverse and experienced team of professionals to build attractive, cost-effective and high-quality communities. Lockwood Construction is a specialized builder of multi-family housing dedicated to excellence in workmanship, cost management and customer service. Customers include non-profit corporations, local government entities, private ownership groups and individuals. The company approaches customer relationships with a long-term focus, emphasizing quality, efficiency and expense control throughout every phase of the construction process. Since Lockwood Construction’s inception in 1944, it has built more than $1.6 billion of housing in the state of Michigan, including 13,000 single family homes, 5,100 multifamily units, 2,300 senior housing units, 1,200 rehabilitation units and 200 condominiums. Lockwood Management was established in 2000. A strong reputation as a skilled construction company and successful developer helped the management company gain instant recognition and respect. Lockwood Management has built upon that reputation to successfully manage communities in a manner that ensures customer satisfaction from both client and owners. Lockwood Management currently manages 34 communities comprising over 4,400 units, including many with HUD financing. Portfolio occupancy is currently 96.9%.
27777 Franklin Rd, Suite 1410 Southfield, MI 48034-2337 248.203.0991
LOCKWOOD MULTI-FAMILY Receiving a Paym... - 70 of 73
PROJECTS BUILT
5,395 Total Units Alberta W. King Village, Detroit, MI – 121 Units Arbor Pointe Apartments, Ypsilanti, MI - 200 Units Avon Park Apartments, Flint, MI – 56 Units Bay Hill Apartments, Traverse City, MI – 150 Units Bay Pointe Apartments, Holland, MI –156 Units Bridgewater Park Apartments, Independence Twp., MI – 264 Units Carriage Town Square, Flint, MI – 30 Units Cedarshores Apartments, Mt. Morris Twp., MI – 144 Units Centre Street Village, Portage, MI – 64 Units Cranbrook Place Apartments Phases I - IV, Southfield, MI – 204 Units Eagle Ridge Apartments, Flint, MI – 104 Units Fairview Ridge Apartments, Normal, IL – 136 Units Ford Lake Landing, Ypsilanti, MI – 184 Units Forest Hills, Kalamazoo, MI – 81 Units Genesis Villas at Medbury Park, Detroit, MI – 89 Units Glenview Gardens, Port Huron, MI – 96 Units Lakeshore Village Phase I, Howell, MI – 144 Units Lakeshore Village Phase II, Howell, MI – 96 Units Lincoln at Fairlane Town Center, Dearborn, MI – 200 Units Mapleview Apartments Phase I, Buena Vista Twp., MI – 144 Units Mapleview Apartments Phase II, Buena Vista Twp., MI – 56 Units Marsh Creek Apartments, Woodhaven, MI – 144 Units Morris Square, Mt. Morris, MI – 96 Units Newberry Homes, Detroit, MI – 60 Units Norris Apartments, Westland, MI – 60 Units Oakview Square, Chesterfield Twp., MI – 193 Units Palmer Court Apartments, Detroit, MI – 173 Units Park Place Apartments, Grand Rapids, MI – 165 Units Pineshores Apartments, Mt. Morris Twp., MI – 121 Units Rivertown Green, Port Huron, MI – 97 Units Shafer Square, Flint, MI - 91 Units Shoal Creek North, Sterling Heights, MI – 72 Units Springbrook Apartments Phase I, Union Twp., MI – 48 Units Springbrook Apartments Phase II, Union Twp., MI – 48 Units U. S. Coast Guard Family Housing, Sault Ste Marie, MI – 14 units Vista Brownstones, Novi, MI - 260 Units Waldon Lake Apartments, Orion Twp., MI – 200 Units Walkabout Creek Apartments Phase I, Dexter, MI - 100 Units Walkabout Creek Apartments Phase II, Dexter, MI - 65 Units Waterford West Apartments Phases I & II, Waterford, MI – 172 Units Woodchase Apartments Phase I, Ann Arbor, MI – 144 Units Woodchase Apartments Phases 2 & 3, Ann Arbor, MI – 224 Units Woodlake Hills, Pontiac, MI – 145 Units
27777 Franklin Rd, Suite 1410 Southfield, MI 48034-2337 248.203.0991
LOCKWOOD SENIOR Receiving a Paym... - 71 of 73
PROJECTS BUILT
2,332 Total Units American House, West Bloomfield, MI – 86 Units Cedarwood Seniors, Flushing, MI – 100 Units Cranbrook Terrace, Mt. Pleasant, MI – 40 Units Fairfax Manor, Superior Twp., MI – 20 Units Glenhaven Manor, Grand Rapids, MI – 133 Units Kearsley Daly Manor, Flint, MI – 100 Units Lakehaven Manor, Pontiac, MI – 163 Units Lockwood of Fenton, Fenton, MI – 106 Units Magnolia Gardens, Troy, MI – 147 Units Meadowbrook Commons, Novi, MI – 175 Units Meadows of Livonia, Livonia, MI – 166 Units Meadowview Gardens, Burton, MI – 126 Units Millpond Manor, Fenton, MI – 65 Units Oakhaven Manor, Howell, MI – 112 Units Parkhaven Manor, Hazel Park, MI – 125 Units Pine Gardens, Mt. Morris Twp., MI – 126 Units Porthaven Manor, Port Huron, MI – 102 Units Riverside Gardens, Waterford, MI – 126 Units Rosehaven Manor, Flint, MI – 123 Units Sylvan Pines, Chelsea, MI – 100 Units Taeckens Terrace, Davison, MI – 91 Units
27777 Franklin Rd, Suite 1410 Southfield, MI 48034-2337 248.203.0991
Receiving a Paym... - 72 of 73
THE LOCKWOOD EXECUTIVE TEAM Rodney M. Lockwood, Jr., Chairman and Chief Executive Officer Mr. Lockwood has been in his current positions for over 25 years. He has overseen the construction of over 10,000 housing units and the design and development of 5,100. He is former Chairman of the Board of the Michigan Chamber of Commerce, former President and Chairman of the Board of the Michigan Housing Council, former Board Member of First Independence Bank and also serves on the board of the National Housing and Rehabilitation Association, is former Treasurer and current board member of the Mackinac Center for Public Policy in addition to serving on the Steering Committee of the Housing Credit Group of the National Association of Home Builders. Mr. Lockwood has been a leader in the turnaround of Michigan. His op-eds and letters have been published in the Detroit Free Press, the Detroit News, Lansing State Journal and the Wall Street Journal. He has made a number of appearances on Fox Business Network, Fox News and local Detroit TV and radio stations. Mr. Lockwood holds a B.S. - Mechanical Engineering degree from the University of Michigan and an M.B.A. (finance) from Wayne State University. Scott A. Larry, Chief Operating Officer and Partner Mr. Larry is the COO of the Lockwood Companies while also maintaining his role as Executive Vice President of Lockwood Construction. He has been employed in the construction industry since 1975, starting in the field as a laborer and working his way up through the ranks. Mr. Larry joined Lockwood in 1988 as Project Manager and assumed his role as Executive Vice President in 1998. He has been directly involved in constructing over 10,000 housing units, approximately 8,000 of these in his tenure with Lockwood. In 2005, he was appointed COO and is responsible for the operations of all three business units. Mr. Larry holds a Bachelor of Science and Technology from Lawrence Technological University and is a licensed builder in the states of Michigan and Florida. He is the past President of the Michigan Housing Council, and a member of the International Code Council, National Fire Protection Association, the National Association of Home Builders and the Construction Specification Institute.
Philip A. LaBelle, Vice President and Partner Mr. LaBelle is the Vice President of Lockwood Management. He is responsible for the day to day operations of the corporate accounting department. He has a diverse background in finance, accounting and operations management. Prior to joining Lockwood, Mr. LaBelle was employed with an internationally recognized hospitality management company, where he worked in finance and accounting for fifteen years. He was financially responsible for assets with revenues up to $14,000,000 annually. He has also worked as a Director of Property Management for a Michigan-based property management company where he led the day to day operations of the property management division. He received a Bachelor of Science degree in Business Economics from The State University of New York at Oneonta and a Master of Science in Management from Walsh College of Business and Accountancy.
27777 Franklin Rd, Suite 1410 Southfield, MI 48034-2337 248.203.0991
Mark Lockwood, Vice President of Development
Receiving a Paym... - 73 of 73
Mr. Lockwood joined the Lockwood Companies in 2011 after working in the multifamily division of Marcus & Millichap, a national brokerage firm. He also has experience working for City Year Detroit, a non-profit organization as volunteer outreach coordinator and a corporate sponsor public relations ambassador. Mr. Lockwood has been intimately involved in the financial analysis of the company portfolio and acquisition opportunities. Mr. Lockwood has experience in processing loan applications for the HUD 223(f) program in addition to key involvement in acquisition and rehabilitation projects involving Section 42 Low-Income Housing Tax Credits. Mr. Lockwood is a graduate of Albion College, holding a Bachelor of Arts degree in Economics and Management. Mr. Lockwood is also a licensed real estate salesperson in the State of Michigan and is a Certified Property Manager candidate with the Institute of Real Estate Management. Barbara Boik, Director of Administrative Services and Partner Ms. Boik has in excess of 20 years of experience in commercial and multifamily property management and 13 of those years have been with Lockwood Management LLC. She joined Lockwood Management LLC as an Administrative Assistant in August of 2000. Prior to joining Lockwood she worked for Etkin & Co as their Office Manager. Ms. Boik has been an integral part of the management company. She has diligently overseen the insurance business of Lockwood very successfully, which has resulted in the Company enjoying very competitive rates for this industry. Ms. Boik has close contact with MSHDA on many issues overseeing annual report submissions, completing new management agent change packages as well as overseeing the property budget submissions. She has taken Business Administration classes through Macomb Community College. Robert Salomon, Director of Asset Management Mr. Salomon has in excess of 40 years’ experience in virtually every aspect of commercial and multifamily residential real estate, including the acquisition, development, finance, construction and completed operations of more than 20,000 units of affordable and market rate apartments in MI, FL, IL, NY, AZ, GA, NC, VA and WA. Mr. Salomon was awarded a B.A. degree in History from the State University of New York at Buffalo, and a Juris Doctor degree (cum laude) from its Law School. He is licensed to practice law in the State of New York, and is a licensed Associate Real Estate Broker in the State of Michigan. Mr. Salomon is a past director of the Michigan Housing Council, and was the chairperson of its Legislative Committee. He has spoken as a guest lecturer at the University Of Michigan School Of Business, and before other professional and civic groups.
27777 Franklin Rd, Suite 1410 Southfield, MI 48034-2337 248.203.0991
Attached documents for item Receiving and filing the 2016-17 Construction Priorities Report. MCMANUS
Receiving and fi... - 1 of 49
SUMMARY REPORT TO THE CITY MANAGER For City Council Meeting of January 25, 2016
SUBJECT:
2016/2017 ENGINEERING PROJECT PRIORITIES LISTING
INITIATED BY:
City of Midland Engineering Department
RESOLUTION SUMMARY: This resolution will accept the 2016-2017 Construction Project Priorities List and order it placed on file in the City Clerk’s Office and at the Grace A. Dow Memorial Library and a map of the projects be placed in the lobby of Midland City Hall. ITEMS ATTACHED:
1. 2. 3. 4. 5.
Cover Letter Resolution Agenda Construction Project Priorities Listing Location Maps
CITY COUNCIL ACTION: 3/5 vote required to approve resolution SUBMITTED BY:
JNF Project Priorities 16rpt
Brian McManus, City Engineer
Receiving and fi... - 2 of 49
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
DATE: January 20, 2016 TO:
Jon Lynch, City Manager
FROM: Brian P. McManus, City Engineer RE:
2016/2017 Engineering Project Priorities Listing
City staff has prepared the attached infrastructure capital maintenance program priority list for the 2016/2017 City budget. The list is organized by fund category including Major Street, Local Street, Water, Sewer, and Miscellaneous General Fund. Individual maps indicating locations of proposed improvements are also included for your information and reference. Projects included in the list are collected from three general sources:
City Staff Initiated Public Petition Process Other Governmental Agencies
City Staff Initiated Projects The Engineering Department annually reviews the street system with the Department of Public Services to decide which streets are needing constant attention and which pavements and curbs are in the worst condition. We also evaluate maintenance requests received from the public. Our pavement management software program is an important tool used to help determine street priorities, funding levels for different repair options based primarily on pavement condition, available funds, and benefit to the overall street network. A combination of the above processes has been utilized to choose the streets recommended in the attached annual project priority list. The Utilities Department annually reviews maintenance records, expansion needs and history of water and sewer systems to determine their priority needs. Also, the Utility Department inspects the condition of the sewer systems of the proposed street projects to coordinate timely repairs to those systems in conjunction with the street reconstruction if needed. Public Petition Process Projects In accordance with past practice, we have solicited requests for capital improvement projects from residents and interested developers for consideration and possible funding within the upcoming fiscal year budget. The petitions and requests are normally accepted
Receiving and fi... - 3 of 49
by City Council in December and referred to the Engineering Department for review and recommendation. This year we only received one sanitary sewer request. All petition requests received in October are reviewed, rated and estimated for construction cost by the Engineering Department. Following established criteria, our analysis finds that some of these projects are recommended for funding and some are not. This is also consistent with past history. The petitioned project is described below. Eastman Avenue from south of Monroe Road to Elisenal Drive This request is for extending a sanitary sewer system along Eastman Avenue from 1,200 feet south of Monroe Road to Commerce Drive and then along Commerce Drive to Elisenal Drive and 700 feet along Elisenal Drive. The overall distance is approximately 1.3 miles. Infrastructure improvements would include a pressure pipe system for sanitary sewer and a pump station. The cost estimate for the needed sanitary sewer work is $520,000. The infrastructure would serve a site planned for a nursing home as well as apartments and condominiums. The site plan for the nursing home has been approved by City Council. The developer has expressed interest in starting this spring. This project request is unique in scope and location and does not fit a standard utility expansion that would generally be accomplished by the Special Assessment process. The site location is within the city limits, but is bound by City Forest and other parcels located outside of the city limits. These adjacent parcels are not assessable and, in addition, they present limited need for future sanitary sewer outside of the site in question. Because of the nature of this infrastructure request, we feel that it is best handled by a negotiated utility expansion contract with the developer. We have been discussing with the developer a plan with low risk to the city and initial capital investment by the developer, similar to the recent Clearpointe Landing project. Any potential payback by the city would be based on finished development and occupancy. We expect to bring a negotiated plan to City Council this spring. The current project priority list does not recommend any funding for this project. Other Agency Projects Often we receive requests to share in projects with other agencies such as the Michigan Department of Transportation (MDOT), Midland County Agencies, Entranceways Initiative Task Force, and other state agencies. Public Act 51, the process that distributes gas and weight tax revenue to the City, requires that we participate in state highway projects that
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take place in our city. Our share is generally 2.2% of the project cost when federal funding is involved. This year we have included funding related to two MDOT projects. MDOT will be replacing the M-20 Bridge over the Tittabawassee River in 2018. The City is responsible for cost sharing on the bridge. We have begun to set aside $167,000 per year of street funds to provide our match of $500,000. Also, bridge illumination is the City’s responsibility so we are budgeting $50,000 a year for three years to meet the expected total of $150,000. This year we have also included funding related to an interagency project with the Midland County Road Commission. The Road Commission will have a construction project to repair Rockwell Drive between Ashman and Wheeler Streets. This road segment is situated along the eastern boundary of the city landfill at the east boundary of the city. We have included $20,000 to participate in this construction project. FUNDING and WORK STRATEGY The Midland County electorate has graciously approved a one mil road millage for approximately 40 years. Previously the long-standing millage was last approved in 2012. In November 2014 the voters of Midland County approved an increase in the Countywide road millage. The millage provides approximately $2.1M additional funds for repairing and maintaining roads. The first allocation of funding will be available in early 2016. For the last several years we have had a gap between the amounts of funding the roads should receive to maintain their integrity as compared to what is available. The gap in funding was approaching $1.7M. The 2014 added millage will eliminate the gap and provide some funding to reduce the backlog of streets that should have been repaired over the last 6-8 years. It is important to note that we will have at least two years of time with both 1 mil millages in effect. Should the “original” 1 mil be renewed in 2016 then we will have a minimum overlap of four years. The chart below indicates the road millage funding timing. Tax Billing Year* 2015 2016 2017 2018
Fiscal Year
Due/Collected
Total Millage
2015-16 2016-17 2017-18 2018-19
Feb. 2016 Feb. 2017 Feb. 2018 Feb. 2019
2.0000 2.0000 1.0000 1.0000
*Winter tax bill mailed in December of each year.
Expiration Dates 12/16 & 12/18 12/16 & 12/18 12/18 12/18
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To give an indication of projects provided by the second road millage the chart below is included. Projects included are both from the current fiscal year and proposed in the upcoming fiscal year. Project Main St: Jerome to Post Blarney St: Sturgeon Crk Prkwy to Leeway Harrison St: Noeske to Ashman Leeway St: Moorland to End of Street Leonard Ln: St. Andrews to Woodlawn Noeske St: Helen to Balfour Ohio St: Carolina to Swede Ottawa St: E Meadowbrook to End of Street Princeton St: Jefferson to End Woodlawn St: Saginaw to Sugnet Cambridge St: Ashman to St. Andrews Eastman Ave: Airport to North Bayliss St: Jefferson to Dartmouth Crane Ct: Eastman to End of Court Highbrook Dr: Westbrier to Hanover Kentwood Dr: Ashman to Corrine Rosemary Ct: Woodlawn to End of Court Westbrier Ter: Lambros to Highbrook Included on the Project Priorities list is the Eastman Avenue rehabilitation project from Airport Road to north of Joe Mann Boulevard. This is a project discussed during the City Council goal setting session on January 16, 2016. The project included for Eastman will add a right turn lane for southbound traffic at Airport Road as well as resurface the roadway. Midland became an “Urban Area” in 2013 based on the 2010 census. Subsequently, we were eligible to become part of a Metropolitan Planning Organization (MPO) with surrounding municipalities to capture federal funds, available through MDOT, for street improvements. This current construction season the new section of Sugnet Road between Whiting Drive and Dublin Avenue is being constructed using MPO funds and associated city match. Approximately $778,000 will become available to the City through the MPO at the beginning of MDOT’s fiscal year in October of 2016. This will be used in the 2017 construction season on St. Andrews Road and West Wackerly Street. The City share of $385,000 is proposed in the Major Street Fund which covers our required match and engineering costs. The match is included in the 2016-2017 fiscal year in order to allow the projects to be ready in order to capture the funding available to the City.
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Based upon current budget estimates, analysis of the June 30, 2015 fund balances and review of the County Road millage cash flow model, the following amounts have been estimated to be available for construction projects in 2016-2017: Major Street Fund County Road Millage Revenue Gas and Weight Tax Proceeds from CY Fund Balance** Proceeds from Fund Balance MPO (Federal Funds)
Local Street Fund County Road Millage Revenue Gas and Weight Tax Proceeds from CY Fund Balance** Proceeds from Fund Balance
$ 2,100,000 500,000 100,000 202,000 778,000 $ 3,680,000
$ 2,100,000 0 151,000 99,000 $ 2,350,000
Wastewater Fund – No Projects Water Fund Working Capital Operating Revenues
$ 2,449,650 0 $ 2,449,650
** Staff is recommending adjustments to certain projects which will require amending the current-year Major Street Fund Budget and Local Street Fund Budget in order to expend the funds before the end of the current fiscal year. If these adjustments are approved, staff will present Council with the necessary budget adjustment information for consideration at a later date. At this early date, it is difficult to estimate the amount of funding which will be available in the General Fund and Stormwater Funds. This report anticipates $326,000 from these two funds. While these funding levels have been conservatively estimated, we must remember it is early in the budget process and the estimates may need to be revised at a later date. The total of the projects recommended are within the funding levels for the various funds indicated above.
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In general, our street system repair and maintenance strategy falls into three levels of repairs. Reconstructing fixes are the most expensive and last 20-25 years. This type of fix repairs the driving surface and the base below the driving surface. Rehabilitation fixes simply repair or replace the driving surface. They are less costly than Reconstruction and last 15 years. Finally, Surface Treatments are materials applied to the top of existing pavements. Surface treatments are the least expensive and last 7-10 years. Using a mix of these different fixes applied to pavements in various conditions is cost effective. Because funding is not unlimited, there will always be pavements in our system at different condition levels between good and poor. Our plan proposes to keep a standard level of surface treatment in the program. Monies received from the new road millage are directed towards the higher level reconstruction and rehabilitation work. This project list is for City Council consideration and to provide a look at proposed projects to be included in the upcoming budget. The resolution attached hereto will indicate Council general approval of the list.
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City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
BY COUNCILMAN WHEREAS, a report has been received from the City Engineer listing the proposed construction projects for 2016-2017 which includes projects petitioned by property owners, projects recommended by the City Administration and others; and WHEREAS, City Council has reviewed the proposed construction projects list and received comments from interested citizens; now therefore RESOLVED, that City Council hereby approves said proposed construction project listing for 2016-2017 and directs the City Administration to include funding requests for the proposed projects in the 2016-2017 budget; and RESOLVED FURTHER, that the report is hereby directed to be placed on file in the City Clerk’s Office and at the Grace A. Dow Memorial Library and a map of the projects be placed in the lobby of Midland City Hall. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
___________________________ Selina Tisdale, City Clerk
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2016 CONSTRUCTION PROJECT PRIORITIES PRESENTATION AGENDA
1. 2. 3. 4. 5. 6. 7. 8. 9.
INTRODUCTION PROJECT PRIORITY PROCESS FUNDING and WORK STRATEGY PETITIONED PROJECT MAJOR STREET FUND PROJECTS LOCAL STREET FUND PROJECTS SANITARY SEWER PROJECTS GENERAL FUND PROJECTS WATER FUND PROJECTS
1/21/2016
CONSTRUCTION PROJECT PRIORITIES MAJOR STREET FUND PROJECT NAME CURRENT PROJECTS (2015/2016 F.Y.)
TOTAL COST
MAIN ST: JEROME TO POST E PATRICK RD: SAGINAW TO WALDO N SAGINAW RD: TUCKER TO EASTMAN TOTAL
CITY COST
PROPOSED FUNDING 16/17 FY
PRIOR YEARS FUNDING
ESTIMATED MAP COMPLETION INCLUDED DATE
$560,000 $730,000 $650,000 $1,940,000
$560,000 $730,000 $650,000 $1,940,000
$50,000 $0 $50,000 $100,000
$510,000 $730,000 $600,000 $1,840,000
AUG '16 AUG '17 AUG '16
$265,000 $850,000 $455,000 $100,000 $500,000 $708,000 $320,000 $167,000 $150,000 $10,000 $50,000 $40,000 $35,000 $30,000
$265,000 $850,000 $155,000 $100,000 $500,000 $230,000 $320,000 $167,000 $150,000 $10,000 $50,000 $40,000 $35,000 $30,000
$265,000 $850,000 $155,000 $100,000 $500,000 $230,000 $320,000 $167,000 $150,000 $10,000 $50,000 $40,000 $35,000 $30,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
NOV '16 OCT '17 NOV '17 NOV '16 NOV '16 NOV '17 NOV '17 NOV '19 AUG '17 NOV '16 NOV '16
REMARKS
MOVED FROM 2014/15 BUDGET
PROPOSED PROJECTS (2016/2017 F.Y.) CAMBRIDGE ST: ASHMAN TO ST. ANDREWS EASTMAN AVE: AIRPORT TO NORTH E ST. ANDREWS RD: WASHINGTON TO SUGNET (MPO) SAGINAW ROAD SHOULDER STABILIZATION ST. ANDREWS RD BRIDGE AT SNAKE CREEK W WACKERLY ST: SCHADE TO STURGEON (MPO) WALDO AVE: E ASHMAN TO WHITEWOOD M-20 BRIDGE (CITY SHARE) SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS NON-MOTORIZED IMPROVEMENTS DITCH CLEANING PRELIMINARY ENGINEERING TRAFFIC SIGN UPGRADE TRAFFIC SIGNAL UPGRADE TOTAL
$3,680,000
$2,902,000
$2,902,000
$0
TOTAL 2016/2017 FUNDED
$3,680,000
$2,902,000
$3,002,000
$0
* - PETITIONED PROJECT
PAGE 1
MPO $300,000
MPO $478,000 $500k - FY 15/16; 16/17; 17/18
CONSTRUCTION PROJECT PRIORITIES PROPOSED PROJECTS (2017/2018 F.Y.) CARPENTER ST: ASHMAN TO LYON EASTLAWN DR: WASHINGTON TO SWEDE E NELSON ST: ASHMAN TO JEFFERSON WASHINGTON ST: WHEELER TO ADAMS M-20 BRIDGE (CITY SHARE) SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS NON-MOTORIZED IMPROVEMENTS DITCH CLEANING PRELIMINARY ENGINEERING TRAFFIC SIGN UPGRADE TRAFFIC SIGNAL UPGRADE TOTAL
$587,000 $384,000 $384,000 $275,000 $166,000 $150,000 $10,000 $50,000 $20,000 $35,000 $30,000 $2,091,000
PROPOSED PROJECTS (2018/2019 F.Y.) HALEY ST: INDIAN TO JEFFERSON ORCHARD DR: SUGNET TO MAIN PERSHING, BARTH, BAYLISS TO PATRICK S SAGINAW RD: DARTMOUTH TO PATRICK (MPO $578K) W WHEELER ST: SAGINAW TO JEFFERSON SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS NON-MOTORIZED IMPROVEMENTS DITCH CLEANING PRELIMINARY ENGINEERING TRAFFIC SIGN UPGRADE TRAFFIC SIGNAL UPGRADE TOTAL
$456,000 $300,000 $300,000 $250,000 $516,000 $150,000 $10,000 $50,000 $20,000 $35,000 $30,000 $2,117,000
* - PETITIONED PROJECT
PAGE 2
1/21/2016
1/21/2016
CONSTRUCTION PROJECT PRIORITIES LOCAL STREET FUND PROJECT NAME CURRENT PROJECTS (2015/2016 F.Y.) BLARNEY ST: STURGEON CREEK PKWY TO LEEWAY HARRISON ST: NOESKE TO ASHMAN LEEWAY ST: MOORLAND TO END OF STREET LEONARD LN: ST. ANDREWS TO WOODLAWN NOESKE ST: HELEN TO BALFOUR OHIO ST: CAROLINA TO SWEDE OTTAWA ST: E MEADOWBROOK TO END OF STREET PRINCETON ST: JEFFERSON TO END OF STREET SANDY RIDGE: LEONARD LN TO END OF STREET WOODLAWN ST: SAGINAW TO SUGNET SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS CURB REPLACEMENT & PAVEMENT PATCHING SUBTOTAL
TOTAL COST
CITY COST
PROPOSED FUNDING 16/17 FY
PRIOR YEARS FUNDING
ESTIMATED MAP COMPLETION INCLUDED DATE
$121,000 $185,000 $154,000 $212,000 $176,000 $167,000 $230,000 $143,000 $77,000 $167,000 $250,000 $150,000 $2,032,000
$121,000 $185,000 $154,000 $212,000 $176,000 $167,000 $230,000 $143,000 $77,000 $167,000 $250,000 $150,000 $2,032,000
$0 $9,000 $0 $58,000 $0 $17,000 $54,000 $0 $0 $13,000 $0 $0 $151,000
$121,000 $176,000 $154,000 $154,000 $176,000 $150,000 $176,000 $143,000 $77,000 $154,000 $250,000 $150,000 $1,881,000
AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16
BAYLISS ST: JEFFERSON TO DARTMOUTH BOSTON ST: ST. ANDREWS TO SUGNET CRANE CT: EASTMAN TO END OF COURT JEROME ST: PINE TO CARPENTER HIGHBROOK DR: WESTBRIER TO HANOVER KENTWOOD DR: ASHMAN TO CORRINNE E MEADOWBROOK DR: JEFFERSON TO WASHINGTON ROCKWELL (MID-BAY COUNTY LINE): ASHMAN TO WHEELER ROSEMARY CT: WOODLAWN TO END WESTBRIER TER: LAMBROS TO HIGHBROOK SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS CURB REPLACEMENT & PAVEMENT PATCHING TOTAL
$260,000 $167,000 $110,000 $225,000 $100,000 $177,000 $375,000 $80,000 $130,000 $185,000 $300,000 $150,000 $2,259,000
$260,000 $167,000 $110,000 $225,000 $100,000 $177,000 $375,000 $20,000 $130,000 $185,000 $300,000 $150,000 $2,199,000
$260,000 $167,000 $110,000 $225,000 $100,000 $177,000 $375,000 $20,000 $130,000 $185,000 $300,000 $150,000 $2,199,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
SEP '16 AUG '17 SEP '16 NOV '16 AUG '17 AUG '17 AUG '17 NOV '16 SEP '16 AUG '17 AUG '17 AUG '17
TOTAL 2016/2017 FUNDED
$2,259,000
$2,199,000
$2,350,000
$0
REMARKS
PROPOSED PROJECTS (2016/2017 F.Y.)
PAGE 3
INTERAGENCY PROJECT (ROAD COMMISSION)
CONSTRUCTION PROJECT PRIORITIES SPECIAL ASSESSMENT PROJECTS (2016/2017 F.Y.) NONE SUBTOTAL
$0 $0
AIRPORT RD: DUBLIN TO PERRINE CHAPEL LN: JEFFERSON TO DILLOWAY W COLLINS ST: ADELAIDE TO ASHMAN ST DIAMOND DR: SOCCER TO WALDO JAY ST: PATRICK TO HANCOCK SAYRE ST: EASTMAN TO JEROME ST. NICHOLAS ST: MAIN TO BUTTLES SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS CURB REPLACEMENT & PAVEMENT PATCHING TOTAL
$285,000 $335,000 $137,000 $460,000 $193,000 $112,000 $102,000 $300,000 $200,000 $2,124,000
$0 $0
$0 $0
PROPOSED PROJECTS (2017/2018 F.Y.)
PROPOSED PROJECTS (2018/2019 F.Y.) AIRFIELD LN: WASHINGTON TO SWEDE BUCHANAN DR: CAPITAL TO COOLIDGE FITZHUGH ST: BUTTLES TO CARPENTER GIBSON ST: STURGEON TO DRAKE MANOR DR: HELEN TO SAGINAW RICHARD CT: MANOR TO END TOWNSEND ST: PINE ST TO CARPENTER ST SURFACE TREATMENT & CRACK SEALING, SIDEWALK RAMPS CURB REPLACEMENT & PAVEMENT PATCHING TOTAL
$284,000 $438,000 $216,000 $201,000 $294,000 $61,000 $165,000 $300,000 $200,000 $2,159,000
PAGE 4
$0 $0
1/21/2016
1/21/2016
CONSTRUCTION PROJECT PRIORITIES SANITARY SEWER PROJECTS PROJECT NAME CURRENT PROJECTS (2015/2016 F.Y.)
TOTAL COST
CITY COST
PROPOSED FUNDING 16/17 FY
PRIOR YEARS FUNDING
ESTIMATED MAP COMPLETION INCLUDED DATE
REMARKS
NONE
PROPOSED PROJECTS (2016/2017 F.Y.) * SANITARY SEWER FORCEMAIN - MONROE TO ELISENAL TOTAL 2016/2017 FUNDED
$520,000 $520,000
$0 $0
$0 $0
PROPOSED PROJECTS (2017/2018 F.Y.) NONE
PROPOSED PROJECTS (2018/2019 F.Y.) NONE * - PETITIONED PROJECT
PAGE 5
$0 $0
FUTURE
PETITIONED PROJECT
1/21/2016
CONSTRUCTION PROJECT PRIORITIES MISCELLANEOUS GENERAL FUND PROJECTS PROJECT NAME CURRENT PROJECTS (2015/2016 F.Y.)
TOTAL COST
STREET LIGHT UPGRADES M-20 BRIDGE ILLUMINATION CULVERT REPLACEMENT (1 LOCATION) W WACKERLY CULVERT REPLACEMENT AT SIEBERT DRAIN
CITY COST
PROPOSED FUNDING 16/17 FY
PRIOR YEARS FUNDING
ESTIMATED MAP COMPLETION INCLUDED DATE
$6,000 $50,000 $100,000 $64,000 $220,000
$6,000 $50,000 $100,000 $64,000 $220,000
$0 $0 $0 $0 $0
$6,000 $50,000 $100,000 $64,000 $220,000
JUL '16 NOV '19 NOV '16 JUL '16
$15,000 $40,000 $10,000 $6,000 $50,000
TOTAL
$15,000 $40,000 $10,000 $6,000 $50,000 $50,000 $5,000 $25,000 $10,000 $100,000 $15,000 $326,000
$0 $0 $0 $0 $0 $100,000 $0 $0 $0 $0 $0 $100,000
JUL '17 OCT '16 OCT '16 JUL '17 NOV '19
$85,000 $25,000 $10,000 $100,000 $15,000 $356,000
$15,000 $40,000 $10,000 $6,000 $50,000 $150,000 $5,000 $25,000 $10,000 $100,000 $15,000 $426,000
TOTAL 2016/2017 FUNDED
$356,000
$426,000
$326,000
$100,000
$0 $0
$0 $0
$0 $0
$0 $0
TOTAL
REMARKS
M-20 BRIDGE; $150K FY 15/16; 16/17; 17/18 COMMERCE DRIVE NEAR 555 BUILDING
PROPOSED PROJECTS (2016/2017 F.Y.) CEMETERY STREETS SIDEWALK IMPROVEMENT PROGRAM SIDEWALK IMPROVEMENT PROGRAM - F.Y. ENGINEERING STREET LIGHT UPGRADES M-20 BRIDGE ILLUMINATION DOWNTOWN STREETSCAPE AND PAVER REPAIRS NORTHWOOD DRIVE SIDEWALK CATCH BASIN LEAD; NEW INSTALLATIONS CATCH BASIN LEAD; REPLACEMENTS CULVERT REPLACEMENT (1 LOCATION) WAY-FINDING SIGN MAINTENANCE
SPECIAL ASSESSMENT PROJECTS (2016/2017 F.Y.) NONE SUBTOTAL
PAGE 6
AUG '16 ONGOING ONGOING NOV '16 ONGOING
SURFACE TREATMENT SPECIAL ASSESSMENT PROCESS
M-20 BRIDGE; $150K FY 15/16; 16/17; 17/18 DDA STREETSCAPE; PAVER REPAIR NEW LEADS DURING STREET RECONST. REPLC LEADS DURING STREET RECONST. LETTS RD. ANNUAL BUDGET FOR SIGN MAINT. & REPL.
CONSTRUCTION PROJECT PRIORITIES PROPOSED PROJECTS (2017/2018 F.Y.) CEMETERY STREETS SIDEWALK IMPROVEMENT PROGRAM SIDEWALK IMPROVEMENT PROGRAM - F.Y. ENGINEERING STREET LIGHT UPGRADES M-20 BRIDGE ILLUMINATION CATCH BASIN LEAD; NEW INSTALLATIONS CATCH BASIN LEAD; REPLACEMENTS CULVERT REPLACEMENT (1 LOCATION) WAY-FINDING SIGN MAINTENANCE TOTAL
$15,000 $40,000 $10,000 $6,000 $50,000 $25,000 $10,000 $150,000 $20,000 $326,000
TOTAL
$15,000 $40,000 $10,000 $6,000 $35,000 $10,000 $150,000 $20,000 $286,000
PROPOSED PROJECTS (2018/2019 F.Y.) CEMETERY STREETS SIDEWALK IMPROVEMENT PROGRAM SIDEWALK IMPROVEMENT PROGRAM - F.Y. ENGINEERING STREET LIGHT UPGRADES CATCH BASIN LEAD; NEW INSTALLATIONS CATCH BASIN LEAD; REPLACEMENTS CULVERT REPLACEMENT (1 LOCATION) WAY-FINDING SIGN MAINTENANCE
PAGE 7
1/21/2016
1/21/2016
CONSTRUCTION PROJECT PRIORITIES WATER PROJECTS PROJECT NAME CURRENT PROJECTS (2015/2016 F.Y.)
TOTAL COST
BLARNEY ST: STURGEON CREEK PKWY TO LEEWAY LEEWAY ST: MOORLAND TO END OF STREET LEONARD LN: ST. ANDREWS TO WOODLAWN MAIN ST: JEROME TO POST NOESKE ST: HELEN TO BALFOUR OHIO ST: CAROLINA TO SWEDE OTTAWA ST: E MEADOWBROOK TO END OF STREET SANDY RIDGE: LEONARD LN TO END OF STREET WOODLAWN ST: SAGINAW TO SUGNET
CITY COST
PROPOSED FUNDING 16/17 FY
PRIOR YEARS FUNDING
ESTIMATED MAP COMPLETION INCLUDED DATE
REMARKS
$152,000 $190,000 $191,000 $507,000 $200,000 $293,000 $48,000 $71,000 $132,000 $1,784,000
$25,000 $20,000 $32,000 $0 $25,650 $193,000 $0 $14,000 $12,000 $321,650
$127,000 $170,000 $159,000 $492,130 $178,380 $100,000 $48,000 $57,000 $120,000 $1,451,510
AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16 AUG '16
REPLC W/8" REPLC W/8" REPLC W/8" REPLC W/ NEW 8" & 10" (WATER TO REVERE PARK) REPLC W/ NEW 8" REPLC W/8"
TOTAL
$152,000 $190,000 $191,000 $507,000 $200,000 $293,000 $48,000 $71,000 $132,000 $1,784,000
$141,000 $30,000 $125,000 $112,000 $132,000 $335,000 $135,000 $90,000 $1,176,000 $195,000 $2,471,000
$141,000 $30,000 $125,000 $112,000 $132,000 $335,000 $135,000 $90,000 $833,000 $195,000 $2,128,000
$0 $0 $0 $0 $0 $0 $0 $0 $343,000 $0 $343,000
SEP '16 AUG '17 NOV '16 SEP '16 AUG '17 AUG '17 SEP '16 NOV '17 NOV '17 NOV '17
WATER TO RODD CROSSINGS (2) REPLC W/8" (WATER TO VAIL) REPLC W/8" REPLC W/8" REPLC W/ NEW 8" & 10" (WATER TO CONCORD) REPLC W/8"
TOTAL
$141,000 $30,000 $125,000 $112,000 $132,000 $335,000 $135,000 $90,000 $1,176,000 $195,000 $2,471,000
TOTAL 2016/2017 FUNDED
$2,471,000
$2,471,000
$2,449,650
$343,000
REPLC W/8" REPLC W/ NEW 12"
PROPOSED PROJECTS (2016/2017 F.Y.) BAYLISS ST: JEFFERSON TO DARTMOUTH BOSTON ST: ST. ANDREWS TO CAMBRIDGE CAMBRIDGE ST: ASHMAN TO ST. ANDREWS CRANE CT: EASTMAN TO END OF COURT KENTWOOD DR: ASHMAN TO CORRINNE E MEADOWBROOK DR: JEFFERSON TO WASHINGTON ROSEMARY CT: WOODLAWN TO END W WACKERLY ST: STURGEON CRK TO STURGEON WALDO AVE: E ASHMAN TO E WHEELER WESTBRIER TER: LAMBROS TO HIGHBROOK
PAGE 8
NEW 24" & REPLC W/ NEW 8" & 10" REPLC W/8"
CONSTRUCTION PROJECT PRIORITIES PROPOSED PROJECTS (2017/2018 F.Y.) CARPENTER ST: ASHMAN TO LYON CHAPEL LN: JEFFERSON TO DILLOWAY EASTLAWN DR: WASHINGTON TO SWEDE E NELSON ST: ASHMAN TO JEFFERSON HALEY ST: INDIAN TO JEFFERSON SAYRE ST: EASTMAN TO JEROME
RPLC W/16" RPLC W/10" (WATER TO NAKOMA) CROSSING RPLC W/8" AND 12"
TOTAL
$600,000 $350,000 $40,000 $252,300 $190,000 $90,880 $1,523,180
WATER TO GLENDALE RPL 12" RPLC W/8" CROSSING US10 AT ELLIOTT NEW NEPD 24" WM CROSSING AT TUCKER RPLC W/8" RPLC W/8" WATER ON BARTH FROM PERSHING TO BAYLISS RPLC W/8"
TOTAL
$130,050 $120,000 $339,200 $375,000 $850,000 $10,000 $190,000 $350,000 $81,000 $75,200 $2,390,400
RPLC W/8"
PROPOSED PROJECTS (2018/2019 F.Y.) AIRFIELD LN: WASHINGTON TO SWEDE N SAGINAW RD: NORTHWOOD TO MSC BUCHANAN DR: CAPITAL TO COOLIDGE E WACKERLY ST: JEFFERSON TO SWEDE E WHEELER ST: SWEDE TO WALDO W WHEELER ST: SAGINAW TO JEFFERSON HALEY ST: INDIAN TO JEFFERSON MANOR: HELEN TO SAGINAW PERSHING, BARTH, BAYLISS TO PATRICK RICHARD CT: MANOR TO END
* - PETITIONED PROJECT
PAGE 9
1/21/2016
ST PO
ST O P
N JEROME
E. PARK
MC GREGOR
W. PARK
SAYRE
ST
EMERSON PARK
W HINES
E R E V E R
S A L O H C I N N R U B U A
N
I AN I AM
.M W
D R A B B U H Y E L P I R
E M O R E J E
M O R E J
H G U H Z T I F
N I K R A L
DR
T Y S MAR
DE SI LF GO
RIE CUR
Y PKW
IROQUOIS
T S
W
MAIN RECONSTRUCTION / WATER
1/19/2016 12:51:33 PM R:\CADFILES\PROJECTS-MAP\15-16\Main Jerome to Post.dgn,1:151.815,Default
JEROME TO POST
JEROME
Receiving and fi... - 19 of 49
UNION
W PINE
ST
TENNESSEE
ST
KENTUCKY
CAROLINA ST
Receiving and fi... - 20 of 49 MARYLAND
N
COLORADO
RD
WALSH
WALDO AVE
AW IN AG
IOWA
S RD
ST
ABBOTT
CAROLINA
SWEDE AVE
ST
ST
PATRICK RD
BR10
20
JAMES SAVAGE RD
WAY
PLUMER
YALE
PATRICK ROAD RECONSTRUCTION
1/20/2016 10:50:07 AM R:\CADFILES\PROJECTS-MAP\15-16\Patrick Saginaw to Waldo.dgn,1:204.617,Default
SAGINAW TO WALDO
TR IN IT Y
SAGINAW ROAD EASTMAN TO TUCKER
RD
WAY
CT
MORNING
DR
GRAHAM
RD
ST
CHELSEA
SHERWOOD
BERKSHIRE
PARKWAY
RD DYCKMAN
L I N D E N
BOND
GL AD DI NG
AVE EASTMAN
DR
W. SUGNET
COLUMBIA
H RT NO
DR
CLOVER
DR
HAMPDEN D OO NW LI
ARBOR
DR
WELLNESS DR.
DR
DR
LE ST CA
CRESCENT
MORNINGSIDE
DR
OK RO NT WB CE DO A S E ME W. CR
RD
1/19/2016 2:04:06 PM R:\CADFILES\PROJECTS-MAP\15-16\Saginaw Eastman to Tucker.dgn,1:1530.21,Default
BURRELL
W NA GI SA
RIDGE
SN OW FI EL D
FA IR WA Y
DR
PA LM
WHISPER
SHOREFRONT OKE ROAN
TERRA
NAKOMA DR
CIR
TOL BRIS
51
US MP A
8
WANETAH
LAKESIDE
WHEELER ST
McCANDLESS DR
PLACE
E G D I R
RUSSELL ST
TUCKER ST
GRANDVIEW
SAGINAW RD
CT
MEYERS ST
ST
CUB
PHEASANT RIDGE DR.
NATALIE CT
C
WOODHAVEN
SYLVAN LN
MAC
BARTO ST
CAMPAU
ST
LN
HIGHRIDGE
LESSA NATALIE
CHRISTIE CT
ST DRAKE
LUHRING
EVAMAR DR
HIDDEN PINES CT
SUNSET
DR
MYRTLE
LAWRENCE DR SYLVAN
N BAYBERRY
NAKOMA
DR
WALBRIDGE
NORWOOD
Receiving and fi... - 21 of 49 GABRIEL
VARNER
VAIL
WASHINGTON
DARTMOUTH
SALEM S
DEVONSHIRE
BOSTON
LIVINGSTON SETTING CAMPBELL
SUN
ASHMAN
Z T R E M
AIRCRAFT
E DG RI MB CA
S L E K C I N
DR
AIRFIELD
48 ST
DARTMOUTH
ST
M A I L L I W
JEFFERSON AVE
S IS YL BA
D L O R A H
N O S I R R A H
DD RO
A N N A U O L
E I R E
RONAN ST
EDWIN
S L E K C I N
N E D D NE I H TO S
N E L E H
N O S L E N
D R A H C I R
R O N A M
ARTHUR
VAIL ST
FEDERAL
R O S S
DARTMOOR
DAN
JONES
B R A L E Y
LN
KOERNER
HANNAH
R D
LINGLE
N A M H S A
COVENTRY
ST. ANDREWS RD
CAMBRIDGE
PAUL
CAMBRIDGE
Receiving and fi... - 22 of 49
JEFFERSON
ST RE LC IL
SANDY RIDGE
CAMBRIDGE RECONSTRUCTION / WATER
1/19/2016 12:28:06 PM R:\CADFILES\PROJECTS-MAP\16-17\Cambridge Ashman to StAndrews.dgn,1:189.257,Default
ASHMAN TO ST. ANDREWS
N
LETTS ST
Receiving and fi... - 23 of 49 ARSTOW PORT
FAIRGROUNDS ELI SENAL
SHEPHERD
S COB A J
JO E
MA NN BL VD .
T. M OORE DR
N AI
EASTMAN
DR
ENTRANCE
MIDLAND MALL CI NE M A BL VD .
ENTRANCE
FAI RGROUND
N
FEENY DRIVEWAY
AIRPORT
EASTMAN AVENUE RESURFACING
1/19/2016 2:05:40 PM R:\CADFILES\PROJECTS-MAP\15-16\Eastman resurfacing.dgn,1:187.314,Default
AIRPORT TO NORTH
CONCO
ARTHUR
WALLEN ST
SETTING LOVE ST SUN
AIRCRAFT
RONAN ST
BYRD
WYLLYS ST
LINDY ST
E ASHMAN ST
1/19/2016 2:06:27 PM R:\CADFILES\PROJECTS-MAP\16-17\St Andrews Washington to Sugnet.dgn,1:159.008,Default
SHARON RD
CORRINNE ST
LIVINGSTON CAMPBELL
MC KEITH RD
RD
KENTWOOD DR
JONES
LANCASTER
DAN
N
C T
S T
ST. ANDREWS
KOERNER
ROBINHOOD
K I M
ST
W AA SS HI G TG OT NO S T W HN I N N
GREENFIELD DARTMOUTH
SALEM ST
DEVONSHIRE ST
T E N G U S
B A L D W I N
SWEDE
CT
LOWE
SUDBU
HILLGROVE
Receiving and fi... - 24 of 49
ST. ANDREWS WASHINGTON TO SUGNET
BAUSS
SHARON
Receiving and fi... - 25 of 49
W NA GI SA
TI TT AB AW AS SE E
N
SALZBURG
RI VE R
SA GI NA W BA Y SO UT HE RN
SAGINAW SHOULDER STABILIZATION
1/19/2016 2:07:44 PM R:\CADFILES\PROJECTS-MAP\16-17\Saginaw Shoulder Stab.dgn,1:151.815,Default
AT SALZBURG
WHITE PINE
ST. ANDREWS
HILL
EASTMAN
ORCHARD
WOOD APPLE
N
SN AK E
RD
DR VALLEY
Receiving and fi... - 26 of 49
CRANE
ELIZABET
ST PO BOOKNESS MC GREGOR
ST. ANDREWS BRIDGE
1/19/2016 2:08:23 PM R:\CADFILES\PROJECTS-MAP\16-17\St Andrews at Snake Creek.dgn,1:159.008,Default
AT SNAKE CREEK
STURG
N
ENTRANCE
RD
FAIRGROUND
AIRPORT
BARSTOW
DR
Receiving and fi... - 27 of 49
JA
10
WOODBERRY
BROOKWOOD
SCHADE
SCHADE WEST
LONDONBERRIE
LORETTA LN.
ALYSE LN. EMERSON
WALDEN WOODS GYLE
STURGEON CT
WINDY
DR
FLAXMOOR
AARON
STONEHAVEN
AY EW LE
BLARNEY
PK WY
WIND SOR
STURGEON CRK PKWY
WACKERLY
LALKWOOD
WACKERLY RECONSTRUCTION / WATER STURGEON CRK PKWY TO SCHADE 1/19/2016 12:19:52 PM R:\CADFILES\PROJECTS-MAP\16-17\Wackerly Sturgeon to Schade.dgn,1:159.008,Default
BIRCHWO
WHEELER
Receiving and fi... - 28 of 49
CT
ST
COLLINGWOOD
AUGUST LN
CT
MICHELE LN
ASHMAN
MC GILL
LAWND ALE
DARBY
COLLINGWOOD
KILMER
BLAIRMONT MILFORD ST
GARLAND
GREENWAY DR
MARK TWAIN
FULLER DR
DR
GREENBRIER
SWEETBRIER TER
DR
CANTERBURY WESTBRIER TER
WALDO
HANOVER
CHESTNUT HILL
HIGHBROOK
DR
FERNSIDE ST
FAIRLANE ST
BIRCHFIELD DR
DR
HAKER
SANITARY LANDFILL
MT VERNON
LAMBROS
ST
IS AV TR
GEORGETOWN
E SUGNET RD
BAUSS
WHITEWOOD
ARLINGTON
H I L L G R O V E
W I N G A T E
SHARON RD
SHARON
JENKINS DR
NOTTINGHAM TER
BELAIRE ST
PK WY
CONGRESS
FORESTVIEW
PLYMOUTH ST
LIBERTY
COLONY
LUND MELODY
LAUREL LN
POINTE CIR
JAMESTOWN
BURLINGTON DR
WILMINGTON DR
N
TROTTER'S SPRINGBROOK
BLOSSOM
PIN E C T WILD
TRAILWOOD CIR
CIR
WALDO RECONSTRUCTION / WATER ASHMAN TO WHITEWOOD - STREET ASHMAN TO WHEELER - WATER 1/21/2016 7:56:08 AM R:\CADFILES\PROJECTS-MAP\16-17\Waldo Ashman to Wheeler WATER.dgn,1:270.381,Default
CT
LONDONBERRIE
WOODBERRY
GYLE
WINDY
IL ABIGA SCARBOROUGH
CAMBERLEY
JEFFREY
MYRTLE
ONNA
DR
CR EE K RD
N
WALDEN WOODS
ON E RG U ST
PERRINE
LORETTA LN.
EMERSON
STONEHAVEN
PK WY
AARON
AVE
FLAXMOOR
HIGHLAND DR.
WOODBRIDGE LN
MOORLAND
BLARNEY
DR
KILT
DR
SUTTON
Y WA
RT RI DG E
E LE AY EW LE
BRAMBLERIDGE
PKWY REEK EON C STURG
WIND SOR
OAKRIDGE
ALYSE LN.
W WACKERLY ST
Receiving and fi... - 29 of 49
BLARNEY RECONSTRUCTION / WATER STURGEON CREEK PKWY TO LEEWAY 1/19/2016 12:55:52 PM R:\CADFILES\PROJECTS-MAP\15-16\Blarney Sturgeon to Leeway.dgn,1:159.008,Default
ADELAIDE
SUNCRIST
MONTROSE
BAKER
N A M HM SH S AA
W ALLEN
R O S S
R E K A B
E
N E L L A
JEROME
W O L R U H T E
N O D R A E R
H G U H Z T I F
E
N O D R A E R
UNION
E
W
HINES
W
A N N A U O L
M A I L L I W
JEROME
ELGIN
S L E K C I N
N N O IS RI R RR AA HH
BROWN
W. COLLINS
D L O R A H
N E L E H
ELIZABETH
BOOKNESS
N E D D NE I H TO S
HELEN
E I R E
JEFFERSON AVE
NOESKE
D R A H C I R
R O N A M
N O S L E N
RANE
N
S L E K C I N
BA LF OU R
W
HO L
DARTMOOR
Z T R E M
Receiving and fi... - 30 of 49
DARTMOUTH
C O L L I N S
HARRISON STREET RECONSTRUCTION
1/19/2016 2:10:03 PM R:\CADFILES\PROJECTS-MAP\15-16\Harrison Noeske to Ashman.dgn,1:151.815,Default
NOESKE TO ASHMAN
LONDONBERRIE
LORETTA LN.
EMERSON
STONEHAVEN
GYLE
WOODBERRY
AVE
WINDY
FLAXMOOR
WALDEN WOODS
IL ABIGA
ON E RG U ST
ONNA
DR
CAMBERLEY
JEFFREY
MYRTLE
RD
N
SCARBOROUGH
MOORLAND
PERRINE
CT
CR EE K
HIGHLAND DR.
WOODBRIDGE LN
DR
KILT
DR
SUTTON
AARON
Y WA
RT RI DG E
E LE AY EW LE
BRAMBLERIDGE
PK WY
WIND SOR
OAKRIDGE
ALYSE LN.
W WACKERLY ST
Receiving and fi... - 31 of 49
LEEWAY RECONSTRUCTION / WATER
1/19/2016 12:53:59 PM R:\CADFILES\PROJECTS-MAP\15-16\Leeway Moorland to end.dgn,1:159.008,Default
MOORLAND TO END
PAUL
ST. ANDREWS
RD
VARNER
ST
HANNAH
DEVONSHIRE ST
CAMBRIDGE
SANDY RIDGE
BOSTON
LEONARD LEONARD
COVENTRY
ROSEMARY
LN
T ES CR LL HI
HARTFORD
RD
SALEM ST
LOWELL
ELM
DENNIS
WO D L AW WN N WO OO D L A
W. SUGNET
RD
OAK
K E E CR
N
ST
CHELSE
BER
COLUMBIA
Receiving and fi... - 32 of 49
GRAHAM
KOERN
ST VAIL ST
LIVINGSTO ST
R D
LINGLE LN
B R A L E Y
HO LY RO OD
ST
VAIL
FEDERAL
CAMPBE
LEONARD RECONSTRUCTION / WATER ST. ANDREWS TO WOODLAWN 1/19/2016 12:53:02 PM R:\CADFILES\PROJECTS-MAP\15-16\Leonard StAndrews to Woodlawn.dgn,1:159.008,Default
Receiving and fi... - 33 of 49
N
RD
ST ST
VAIL
SUNCRIST
S L E K C I N
D L O R A H
N E D D NE I H TO S
N E L E H N O S I R R A H
W. COLLINS
Z T R E M
R O N A M
S L E K C I N
NOESKE
DARTMOOR
HELEN ELIZABETH
R O S S
OU R
LN
D R A H C I R
HILL
LINGLE
N O S L E N
CRANE
R D
B R A L E Y
ST
BA LF B A O U L RF
HO LY RO OD
AN DR EW S ST W
SN AK E
VARNER
A N N A U O L
NOESKE RECONSTRUCTION / WATER
1/19/2016 12:50:24 PM R:\CADFILES\PROJECTS-MAP\15-16\Noeske Helen to Balfour.dgn,1:151.815,Default
HELEN TO BALFOUR
EASTLAWN DR
MARYLAND
ST
TENNESSEE
ST
OHIO KENTUCKY
VIRGINIA ST
CAROLINA
IOWA
RD
ST
SE W E DE SW D E AVE
ST
ST
COLORADO WALSH
ST
W ST NA N GI SI SA ON SC S. WI
N GA
CAR OLINA ST CAROLINA
EASTLAWN DR
E PATRICK RD
OHIO RECONSTRUCTION / WATER
1/19/2016 12:48:41 PM R:\CADFILES\PROJECTS-MAP\15-16\Ohio Carolina to Swede.dgn,1:151.815,Default
CAROLINA TO SWEDE
DAWN DR.
N
PO
MORNING
H
Receiving and fi... - 34 of 49
HAMPDEN
E. WH CONCORD
KINGSTON
HURON
OTTAWA
JEFFERSON
MATTE
DR
E ME A D OD WO BR O O K DR M E A W B R OO K HURON
NORFOLK
LE ST CA
OK RO B OW AD ME
N
DR
CHATHAM
ST
DR
DR
WILSON
SHAWNEE
W. WHEELER
HAMPSHIRE ST
CHATHAM
LEXINGTON SEMINOLE ST
DR
ST
DR
GRAHAM
CONCORD
SUDBURY
GREENFIELD
HARTFORD
LOWELL
OAK
DENNIS ST
RD
ELM
NORWICH
WOODLAWN
COLUMBIA
D OO NW LI
SINCLAIR
CT
OKE ROAN
TOL BRIS W.
DR HAMPSHIRE
SHOREFRONT
HARDING
MORNINGSIDE Receiving and fi... - 35 of 49
OTTAWA
MORNING
WI LS ON CT
MORNING MEADOW CIR
ST CRUZ
OTTAWA RECONSTRUCTION / WATER
1/19/2016 12:47:50 PM R:\CADFILES\PROJECTS-MAP\15-16\Ottawa Meadowbrook to end.dgn,1:159.008,Default
CUL-DE-SAC TO END
B R A L E Y
SUN
R O S S
Receiving and fi... - 36 of 49
Z T R E M
EDWIN
DD RO
AIRCRAFT
RONAN ST
AIRFIELD
LN
AIRFIELD L
ST
DARTMOUTH
AVE
N SI ON SC WI
CHERRY
EASTLAWN DR
AN IG CH MI
CHERRYVIEW
ST
N A M M A D
C O L L I N S
JEFFERSON TO END
ST
1/19/2016 2:10:51 PM R:\CADFILES\PROJECTS-MAP\15-16\Princeton Jefferson to end.dgn,1:159.008,Default
ST
PRINCETON COURT
CAROLINA ST
PRINCETON PRINCETON CT
ST
M A I L L I W
JEFFERS ON JEFFERSON AVE
S IS YL BA
D L O R A H
N E D D NE I H TO S
S L E K C I N
E DG RI MB CA
S L E K C I N
D R A H C
SCOTT
GLENDALE
DR
A N N A U O L
E I R E
WYLLYS ST
LINDY ST
E ASHMAN STN
LOWELL
ELM
PAUL
ST. ANDREWS
RD
VARNER
ST
HANNAH
DEVONSHIRE ST
CAMBRIDGE
SANDY RIDGE RIDGE
BOSTON
LEONARD LEONARD
COVENTRY
ROSEMARY
LN
T ES CR LL HI
HARTFORD
RD
SALEM ST
DENNIS
WOODLAWN
W. SUGNET
RD
OAK
K E E CR
N
ST
CHELSE
BER
COLUMBIA
Receiving and fi... - 37 of 49
GRAHAM
KOERN
ST VAIL ST
LIVINGSTO ST
R D
LINGLE LN
B R A L E Y
HO LY RO OD
ST
VAIL
FEDERAL
CAMPBE
SANDY RIDGE RECONSTRUCTION / WATER
1/19/2016 12:43:52 PM R:\CADFILES\PROJECTS-MAP\15-16\Sandy Ridge Leonard to end.dgn,1:159.008,Default
LEONARD TO END
LOWELL
ST. ANDREWS
RD
VARNER
DEVONSHIRE ST
PAUL
BOSTON
CAMBRIDGE
SANDY RIDGE
COVENTRY
LEONARD
ST
HARTFORD
ROSEMARY
LN
T ES CR LL HI
WO OO L AW WN N WO DD L A
SUGNET
SALEM ST
DENNIS
ELM
RD
OAK
K E E CR
N
ST
CHELSE
BER
COLUMBIA
Receiving and fi... - 38 of 49
GRAHAM
KOERN
HANNAH
ST VAIL ST
LIVINGSTO ST
R D
LINGLE LN
B R A L E Y
HO LY RO OD
ST
VAIL
FEDERAL
WOODLAWN RECONSTRUCTION / WATER
1/19/2016 12:42:57 PM R:\CADFILES\PROJECTS-MAP\15-16\Woodlawn Saginaw to Sugnet.dgn,1:159.008,Default
SAGINAW TO SUGNET
CAMPBE
ARTHUR
VAIL ST
ST
Receiving and fi... - 39 of 49
LANCAST
JONES VAIL
WALLEN S N
LIVINGSTON SETTING
R D
LINGLE
SUN E ASHMAN ST
Z T R E M
EDWIN AIRCRAFT
48
DARTMOUTH
DARTMOUTH PRINCETON CT
N A M M A D
24
CHERRY
EASTLAWN DR
AN IG CH MI
ST
J EFFERSOAVE N JEFFERSON
LN
ST
N O D R A E R
N E L L A
23
AIRFIELD
SCOTT
ST
R E K A B
E
E
C O L L I N S
SS S IS LI YYL BA BA
M A I L L I W
E
W O L R U H T E
RONAN ST
E DG RI MB CA
S L E K C I N
N O S I R R A H
DD RO
A N N A U O L
E I R E
WYLLYS ST
DR
D L O R A H
N E L E H
N E D D NE I H TO S
N O S L E N
D R A H C I R
R O N A M
S L E K C I N
NOESKE
DARTMOOR
N A M H S A
LOVE ST
CAMPBELL
R O S S
LN
OLLINS
FEDERAL
B R A L E Y
ST
ST
BAYLISS RECONSTRUCTION / WATER JEFFERSON TO DARTMOUTH 1/19/2016 1:39:23 PM R:\CADFILES\PROJECTS-MAP\16-17\Bayliss Jefferson to Darthmouth.dgn,1:189.257,Default
ST CONCORD
C T
WASHINGTON ST
DAN
ARTHUR
VAIL ST
S T
E ST ANDREWS
JONES VAIL
B A L D W I N
K I M
SUDBURY
10
GREENFIELD
SALEM ST
DEVONSHIRE ST
CT
LOWELL
ELM
KOERNER
HANNAH
CRUZ
LANCASTER
VARNER
ST
DARTMOUTH
ST. ANDREWS RD
BOSTON
HARTFORD
PAUL
COVENTRY
SANDY RIDGE
CAMBRIDGE
9
LEONARD
LN
T ES CR LL HI
WOODLAWN
SUGNET ROSEMARY
N
NORWICH OAK
DENNIS ST
RD
JEFFERSON
GRAHAM
ST
ST
DRfi... - 40 of 49 Receiving and
CORRINNE ST
WALLEN ST
LIVINGSTON SETTING FEDERAL
CAMPBELL
R O S S
LOVE ST SUN E ASHMAN ST
Z T R E M
EDWIN
LINDY ST
LN
B R A L E Y
R D
BOSTON RECONSTRUCTION / WATER
1/19/2016 12:40:45 PM R:\CADFILES\PROJECTS-MAP\16-17\Boston St Andrews to Sugnet.dgn,1:189.257,Default
ST. ANDREWS TO SUGNET
CRANE CRANE
HELEN
BROWN
ELGIN
W ALLEN W
JEROME
T S
H G U H Z T I F
N O D R A E R
UNION
E
W
N O D R A E R
W HINES
S A L O H C I N
BAKER
ST
17
E R E V E R
ADELAIDE
JEROME
E. PARK
W. PARK
MC GREGOR
W. COLLINS
MONTROSE
SUNCRIST
ELIZABETH
BOOKNESS
SAYRE
NOESKE
BA LF OU R
HILL
15
EASTMAN
16
N
HO LY RO OD
W
ST
Receiving and fi... - 41 of 49
ST
AN DR EW S
ST
CRANE RECONSTRUCTION / WATER
1/19/2016 12:25:55 PM R:\CADFILES\PROJECTS-MAP\16-17\Crane Eastman to End.dgn,1:189.257,Default
EASTMAN TO END
NOESKE
BA LF
HILL
Receiving and fi... - 42 of 49
N N O S L E N
CRANE
R O N A M
HELEN
N E L E H
ELIZABETH
CAR BROWN PEN TER
ELGIN ADELAIDE
SAYRE
JEROME
W. PARK
E. PARK
MC GREGOR
W. COLLINS
MONTROSE
BOOKNESS
W ALLEN
JEROME
JEROME
IROQUOIS
R E K A B
PINE
D D O R
PINE TO CARPENTER
E N I P
JEROME
E V O R G
N I K R A L
D L A N O D C M
R E T N E P S R E A N C I H
19
W O L R U H T
E N E L L A
N I A M
DR
H G U H Z T I F
H G U H Z T N I O F D R O G
E
. W
DE SI LF GO
E M O R E J
E
N R U B U A
UNION
N O D R A E R
W
E
S A L O H C I N
N O D R A E R
E R E V E R
1/19/2016 2:12:22 PM R:\CADFILES\PROJECTS-MAP\16-17\Jerome Pine to Carpenter.dgn,1:189.257,Default
N A M H S A
W
W HINES
D R A B B U H Y E L P I R
BAKER
ST
17
T S
N O S I R R A H
SUNCRIST
15
CONGR
FORE MELODY
WILMINGTON DR
IS AV R T
Receiving and fi... - 43 of 49 ARLINGTON
HIGHBROOK RECONSTRUCTION
1/19/2016 2:01:09 PM R:\CADFILES\PROJECTS-MAP\16-17\Highbrook Westbrier to Hanover.dgn,1:189.257,Default
WESTBRIER TO HANOVER
ST
COLLINGWOOD
AUGUST LN
CT
MICHELE LN
DARBY
MC GILL
LAWND ALE
MILFORD ST
BLAIRMONT
COLLINGWOOD
FULLER DR
DR
KILMER
ST
GARLAND
GREENWAY DR
DR
FERNSIDE ST
FAIRLANE ST
BIRCHFIELD DR
DR
LAMBROS
GREENBRIER
WESTBRIER
CANTERBURY
E SUGNET RD
MARK TWAIN
DR
SWEETBRIER TER
HIGHBROO K HIGHBROOK
CHESTNUT HILL
H I L L G R O V E
W I N G A T E
JENKINS DR
NOTTINGHAM TER
12
HANOVER
BELAIRE ST
CT
MT VERNON HANOVER
LAUREL LN
N
GEORGETOWN
W I N G A T E
SHARON
E SUGNET RD
RD
LOVE ST SUN
DR
SETTING
AVE
WALLEN ST
HAKER
CORRINNE
KENTWOOD
LANCASTER
ARTHUR
JENKINS DR N
C T
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Attached documents for item Receiving and filing a staff report to the City Council regarding outcomes of the 2016 City Council Planning Retreat. LYNCH
Receiving and fi... - 1 of 5
SUMMARY REPORT OF THE CITY MANAGER for City Council Meeting of January 25, 2016
SUBJECT: REPORT ON THE 2016 CITY COUNCIL PLANNING RETREAT
RESOLUTION SUMMARY: This resolution receives and files a staff report to the City Council regarding outcomes of the 2016 City Council Planning Retreat.
ITEMS ATTACHED: 1. Letter of Transmittal 2. Report to the City Council 3. Resolution
COUNCIL ACTION: 3/5 vote required to approve resolution
Jon Lynch, AICP ICMA-CM City Manager
Receiving and fi... - 2 of 5
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.cityofmidlandmi.gov
January 20, 2016
Honorable Mayor and City Council City of Midland Michigan Dear Councilmen: On Saturday, January 16, the City Council conducted its annual planning retreat. This retreat provides Council an opportunity to review and discuss in detail important factors likely to influence the future financial position of the City. Topics included:
Countywide Road Millage & Projects Mall Area Traffic Engineering Pension & other post-employment benefit costs Upcoming labor agreements Dow Dioxin Remediation Update Economic Communications Strategy FY 2016-17 Budget Projections Council Directives for FY 2016-2017
One important aspect of this annual exercise involves Council providing staff with general directives that serve as a foundation on which the upcoming fiscal year budget is constructed. For FY 2016-17, Council has established the following budget expectations: 1. 2. 3. 4.
To the extent possible, services will not be reduced. The general operations property tax millage rate will not rise more than 0.5 mills. Fund balance within the General Fund will be maintained at $5.1 million. Costs associated with Sunday DART services will be submitted for consideration by Council.
On Monday, January 25, Council will formally receive a report outlining the directives for FY 2016-17. Provided is a resolution by which the City Council may receive that report. Sincerely,
Jon Lynch, AICP ICMA-CM City Manager
Receiving and fi... - 3 of 5
Date: January 18, 2016
STAFF REPORT TO THE CITY COUNCIL CITY COUNCIL BUDGET OBJECTIVES FOR FY 16-17
REPORT During the annual City Council planning retreat of January 16, 2016 Councilmen reviewed current and future financial concerns. At the conclusion of that session Council expressed its expectations regarding the basic approach to be taken in developing the Fiscal Year 2016-2017 budget. Following is a basic summary of those expectations:
Budget Directives
The City Council anticipates that the following directives will be addressed as staff prepares the FY 2016-2017 budget:
Public services, with particular emphasis on public safety, will be maintained at the highest level possible under current economic and budget conditions. The millage rate supporting general operations may be increased, with Council preferring not more than 0.25 mills but willing to consider up to 0.5 mills. Unreserved fund balance shall not be reduced, being maintained at $5.1 million. Should available carryover exceed $1 million then any amount of carryover over $1 million and less than $1.5 million will be added to unreserved fund balance. Costs associated with Sunday DART services will be submitted in conjunction with the proposed FY 16-17 budget for consideration by Council.
General Directives
The City Council also anticipates that the following associated directives will be considered as staff addresses other financial concerns in FY 2016-2017:
The City of Midland will pursue renewal of the county-wide road millage. During Q1, 2016 Council will be provided with an update on work funding by the FY 2015-2016 $250,000 supplemental sidewalk repair allocation. The City of Midland will pursue implementation of citizen engagement and financial transparency software platforms.
1
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Work will be undertaken to design, fund, and implement traffic capacity improvements at the Jefferson Avenue / Joe Mann Boulevard intersection. Prior to the close of FY 16-17 City Council will receive a report regarding moving Council elections to an even year election cycle. The City of Midland will pursue a joint meeting with the Midland County Board of Commissioners discussing the Midland County Dashboard.
This report broadly outlines the direction Council wishes to convey to staff with regard to development of the Fiscal Year 2016-2017 budget. Respectfully Submitted,
Jon Lynch, AICP ICMA-CM City Manager
2|Page
Receiving and fi... - 5 of 5
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.cityofmidlandmi.gov
BY COUNCILMAN WHEREAS, on January 16, 2016 the City Council conducted a planning retreat for the purpose of discussing current and future financial concerns; and WHEREAS, at the conclusion of that session Council expressed their expectations regarding the basic approach to be taken in developing the Fiscal Year 2016-2017 budget; and WHEREAS, during that meeting, the City Council reviewed and affirmed those expectations embodied in a report of January 18, 2016 titled: City Council Budget Objectives for FY 16-17; now therefore RESOLVED, that the report City Council Budget Objectives for FY 16-17 is hereby received. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
__________________________________________ Selina Tisdale, City Clerk
Attached documents for item * Fire Station 1 Renovations. COUGHLIN
* Fire Station ... - 1 of 3
SUMMARY REPORT TO MANAGER for City Council Meeting of January 25, 2016
SUBJECT:
Fire Station 1 Renovations
INITIATED BY:
Fire Department
RESOLUTION SUMMARY: This resolution authorizes a purchase order to Three Rivers Corporation of Midland, Michigan in the amount of $639,550 and approves a contingency sum of $31,977.50 for unanticipated expenses for renovations of Fire Station 1.
ITEMS ATTACHED: 1. Letter of Transmittal 2.
Resolution
COUNCIL ACTION: 1. 3/5 vote required to approve resolution
Chris A. Coughlin Fire Chief January 19, 2016
* Fire Station ... - 2 of 3
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
January 19, 2016
Jon Lynch City Manager City of Midland Midland, Michigan
Dear Mr. Lynch: In 2013, a total of $712,851 from The Herbert H. and Grace A. Dow Foundation was allocated for partial renovations of Fire Stations 1 and 3. The local architectural firm, ArchiVerde, was retained for design and construction management services. Bids were sought following completion of the designs, and four bids were received. The low bid meeting specifications ($966,150) was submitted by Three Rivers Corporation and was greater than the funds available to complete both projects. City Senior Procurement Accountant, Annie Thrush, indicated that the bid could be split pending agreement with Three Rivers in order to pursue completion of one project with the post design balance available of $673,501. Three Rivers agreed to the split and a contract was drafted by ArchiVerde with Three Rivers for renovations to Fire Station 1 at a cost of $639,550. Addition of a 5% contingency of $31,977.50 is recommended by the city Senior Procurement Accountant, bringing the total to $671,527.50. There is an option to complete renovations to Station 3 should funds become available. I am requesting acceptance of the contract agreement with Three Rivers at the January 25, 2016 City Council meeting in the amount of $639,550, with a contingency of $31,977.50 available for any unanticipated expenses. Funds for this project will come from account #101-3320-97-020 (Buildings and Additions). Respectfully submitted,
______________________________ Chris A. Coughlin Fire Chief
_____________________________ Annie Thrush Senior Procurement Accountant
* Fire Station ... - 3 of 3
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
BY COUNCILMAN WHEREAS, funds have been given to the Fire Department from The Herbert H. and Grace A. Dow Foundations for infrastructure improvements; and WHEREAS, sealed bids for renovations at Fire Stations 1 and 3 have been advertised and received in accord with Section 2-18 of the Midland Code of Ordinances, Bid No. 3732; and WHEREAS, funding is adequate for only renovations for Fire Station 1; and WHEREAS, funding has been budgeted for this purpose in the 2015/16 Fire Department Capital Budget Item, Account # 101-3320-97-020 (Buildings and Additions); now therefore RESOLVED, that the low qualifying bid from Three Rivers Corporation of Midland, Michigan in the amount of $639,550.00 with a contingency sum of $31,977.50 for unanticipated expenses is accepted and that a purchase order for renovations of Fire Station 1 by Three Rivers Corporation is authorized. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
__________________________________ Selina Tisdale, City Clerk
Attached documents for item * 2016 Surface Treatment & Crack Sealing Program; Contract No. 4. MCMANUS
* 2016 Surface ... - 1 of 4
SUMMARY REPORT TO THE CITY MANAGER for Council Meeting of January 25, 2016
SUBJECT:
2016 SURFACE TREATMENT & CRACK SEALING PROGRAM; CONTRACT NO. 4
INITIATED BY:
City of Midland Engineering Department
RESOLUTION SUMMARY: This resolution authorizes the Mayor and City Clerk to execute a contract with Highway Maintenance & Construction Company, Inc. for the 2016 Surface Treatment & Crack Sealing Program; Contract No. 4. ITEMS ATTACHED:
1. Cover Letter 2. Resolution 3. Location Map
CITY COUNCIL ACTION: 3/5 vote required to approve resolution SUBMITTED BY:
CONT16-04 RPT JJM
Brian P. McManus, City Engineer
* 2016 Surface ... - 2 of 4
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
January 20, 2016 Jon Lynch, City Manager City of Midland, Michigan Dear Mr. Lynch: On Tuesday, January 19, 2016 at 2:00 p.m., sealed proposals were publicly opened and read by the Senior Procurement Accountant for the "2016 Surface Treatment & Crack Sealing Program; Contract No. 4". There were 3 individuals attending the opening representing vendors and the City. Bids were received as follows: Highway Maintenance Fahrner Asphalt
Romulus, MI Saginaw, MI
$634,075.00 $749,380.88
This project was recommended by Engineering and the Department of Public Services and approved by City Council during the annual Construction Project Priorities process with funding provided by the Major and Local Street Funds. This contract is for surface treatment and crack sealing of various major and local streets as highlighted on the attached location map. Annually, we bid surface treatment work to establish unit prices with estimated quantities and then adjust the contract up or down to meet our budget. The low proposal received was for $634,075.00. Current funding is $665,000.00 for construction and placement of surface treatment materials. Therefore, we plan to increase contract quantities to raise the actual bid amount by $30,925.00 to meet our budget. It is our recommendation that a contract be awarded to Highway Maintenance & Construction Company, Inc. of Romulus, Michigan in the amount of $665,000.00 based on the unit prices submitted. Respectfully submitted, ______________________________ Brian P. McManus, City Engineer
CONT16-04 LTR JJM
______________________________________ Annie Thrush, Senior Procurement Accountant
* 2016 Surface ... - 3 of 4
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
BY COUNCILMAN WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the surface treatment and crack sealing of local and major streets; and WHEREAS, funding for this project is provided by the Major and Local Street Funds; now therefore RESOLVED, that the low sealed proposal with adjusted quantities submitted by Highway Maintenance & Construction Company, Inc. of Romulus, Michigan for the "2016 Surface Treatment & Crack Sealing Program; Contract No. 4", in the amount of $665,000 based upon current funding levels is hereby accepted and the Mayor and the City Clerk are authorized to execute a contract therefore in accord with the proposal and the City's specifications; and RESOLVED FURTHER, that the City Manager has the authority to approve any change orders modifying or altering this contract in an aggregate amount not to exceed $20,000.
YEAS: NAYS: ABSENT:
I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
____________________________ Selina Tisdale, City Clerk
CONT16-04 RES jjm
CITY OF MIDLAND 2016 SURFACE TREATMENT PROGRAM
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* 2016 Surface ... - 4 of 4
Attached documents for item * 2016 Blarney and Leeway Dr. Reconstruction; Contract No. 05. MCMANUS
* 2016 Blarney ... - 1 of 5
SUMMARY REPORT TO THE CITY MANAGER for City Council Meeting of January 25, 2016
SUBJECT:
2016 Blarney and Leeway Dr. Reconstruction; Contract No. 05
INITIATED BY:
City of Midland Engineering Department
RESOLUTION SUMMARY: This resolution authorizes the Mayor and City Clerk to execute a contract with Shaw Contracting Co. in the amount of $378,090.00 for the street reconstruction of Blarney Drive from Sturgeon Creek Parkway to Leeway Drive and for the reconstruction of Leeway Drive from Moorland Drive to the end of street. ITEMS ATTACHED:
1. Cover Letter 2. Resolution 3. Location Map
CITY COUNCIL ACTION: 3/5 vote required to approve resolution SUBMITTED BY:
CONT1605_RPT JNF
Brian P. McManus, City Engineer
* 2016 Blarney ... - 2 of 5
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
January 20, 2016 Jon Lynch, City Manager City of Midland, Michigan Dear Mr. Lynch: On Tuesday, January 19, 2016 at 2:00 p.m., sealed proposals were publicly opened and read by the Senior Procurement Accountant for the "2016 Blarney and Leeway Dr. Reconstruction; Contract No. 05". There were 6 individuals attending the opening representing contractors and the City. Bids were received as follows: Shaw Contracting Co. Sterling Excavation, Inc. Johnston Contracting, Inc. Malley Construction, Inc. *Engineers Estimate McGuirk Sand-Gravel, Inc. Crawford Contracting, Inc. Eric Construction, Inc. Pat’s Gradall Service
Bay City West Branch Midland Mt. Pleasant Mt. Pleasant Mt. Pleasant St. Charles Midland
$378,090.00 384,688.80 412,569.00 421,350.75 422,901.50 423,232.95 428,247.52 458,896.00 479,108.00
Funding for this project is provided by the Local Street Fund and the Water Fund. This contract is for the reconstruction, including water main, of Blarney Drive from Sturgeon Creek Parkway to Leeway Drive and for the reconstruction, including water main, of Leeway Drive from Moorland Drive to the end of street. This project was recommended by the Engineering Department and the Department of Public Services and the Utilities Department and approved by City Council during the annual Construction Priority process. It is our recommendation that the low bid of $378,090.00 submitted by Shaw Contracting Co. of Bay City be accepted in the best interest of the City of Midland. Respectfully submitted,
____________________________________ Brian P. McManus City Engineer CONT1605_LTR JNF
___________________________ Annie Thrush Senior Procurement Accountant
* 2016 Blarney ... - 3 of 5
City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax
BY COUNCILMAN
WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for reconstruction, including water main, of Blarney Drive from Sturgeon Creek Parkway to Leeway Drive and for the reconstruction, including water main, of Leeway Drive from Moorland Drive to the end of street; and WHEREAS, funding for this project is provided by the Local Street Fund and the Water Fund; now therefore RESOLVED, that the low sealed proposal submitted by Shaw Contracting Co. of Bay City, Michigan, for the “2016 Blarney and Leeway Dr. Reconstruction; Contract No. 05”, in the indicated amount of $378,090.00, based upon City estimated quantities is hereby accepted and the Mayor and the City Clerk are authorized to execute a contract therefore in accord with the proposal and the City's specifications; and RESOLVED FURTHER, that the City Manager has the authority to approve change orders modifying or altering this contract in an aggregate amount not to exceed $20,000.00. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
__________________________ Selina Tisdale, City Clerk
CONT1605_RES JNF
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Attached documents for item * Conditional Use Permit No. 56 - to consider a request for review and approval of a Conditional Land Use for a single family dwelling in a RB Multiple-Family Residential zoning district located at 309 Sam Street (2/15). KAYE
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SUMMARY REPORT TO CITY MANAGER for City Council Meeting of 1-25-16 SUBJECT: Conditional Use Permit No. 56 – Midland County Habitat for Humanity. PETITIONER: Midland County Habitat for Humanity. PLANNING COMMISSION PUBLIC HEARING: January 12, 2016 SUMMARY: THIS RESOLUTION WILL SET A PUBLIC HEARING TO CONSIDER A REQUEST OF MIDLAND COUNTY HABITAT FOR HUMANITY FOR REVIEW AND APPROVAL OF A CONDITIONAL LAND USE FOR A SINGLE FAMILY DWELLING IN A RB MULTIPLE-FAMILY RESIDENTIAL ZONING DISTRICT LOCATED AT 309 SAM STREET. ITEMS ATTACHED: 1. Letter to City Manager. 2. Resolution for Council action. 3. Staff Report to the Planning Commission dated January 5, 2016. 4. Planning Commission minutes of January 12, 2016. (public hearing) 5. Communication(s). 6. Map showing location of property. 7. Site Plan. CITY COUNCIL ACTION: 1. Public hearing is required. Date: February 15, 2016. 2. Advertising date: January 30, 2016. Public Hearing notification to area residents mail date: January 29, 2016. 3. 3/5 vote required to approve resolution.
C. Bradley Kaye, AICP, CFM Assistant City Manager for Development Services CBK/djm 1-20-16
Summary Report CUP #56 set PH13789
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City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.cityofmidlandmi.gov
January 20, 2016
Jon Lynch, City Manager City Hall - 333 West Ellsworth Street Midland, Michigan Dear Mr. Lynch: At its meeting on Tuesday, January 12, 2016 the Planning Commission considered Conditional Use Permit No. 56, the request of Midland County Habitat for Humanity, Inc. for review and approval of a conditional use permit for a single family dwelling in a RB Multiple-Family Residential zoning district located at 309 Sam Street. Conditional Use Permit petitions are subject to both non-discretionary (site plan) and discretionary standards. Discretionary standards are found in Section 28.03B of the City’s zoning ordinance and are to be determined by the City Council during deliberation on the petition. They include: protection of public health, safety and general welfare, compatibility with surrounding land uses, detrimental effects, impact of traffic, adequacy of public services, protection of site characteristics, compatibility with natural environment, compatibility with the Master Plan and intent of Zoning Ordinance and public comments. After deliberation on the petition, the Planning Commission took the following action: It was moved and seconded that the Planning Commission recommend to City Council approval of Conditional Use Permit No. 56 subject to the following contingencies: 1. One (1) single-family dwelling shall be permitted on the property. 2. One (1) driveway shall be permitted to Sam Street. 3. Approval is granted to the proposed single family dwelling only. Any additional uses of the property shall be reviewed and approved in accordance with the standards of the City of Midland Zoning Ordinance, including the requirements for site plan approval under Article 27. Vote on the motion: YEAS: NAYS: ABSENT:
Bain, Heying, Mayville, McLaughlin, Pnacek, Senesac, Stewart and Tanzini None Hanna
Motion was approved 8 to 0.
* Conditional U... - 3 of 19 The City Council is being requested to set a public hearing to consider Conditional Land Use Permit No. 56 for the February 15, 2016 regular meeting at 7:00 p.m. Respectfully,
C. Bradley Kaye, AICP, CFM Assistant City Manager for Development Services CBK/djm LETTER OF TRANSMITTAL – Conditional Use Permit #56 set PH
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City Hall 333 West Ellsworth Street Midland, Michigan 48640-5132 989.837.3300 989.835.2717 Fax www.cityofmidlandmi.gov
BY COUNCILMAN WHEREAS, Midland County Habitat for Humanity submitted a request for a conditional land use permit for a single family dwelling in a RB Multiple-Family Residential zoning district, located at 309 Sam Street; and WHEREAS, the City Planning Commission has conducted a public hearing in accord with Section 28.02(A) of the Zoning Ordinance of the City of Midland on said conditional use; and WHEREAS, the Planning Commission has submitted its recommendation of approval, in accord with Section 28.02(B) of the Zoning Ordinance of the City of Midland; now therefore RESOLVED, that notice is hereby given that a public hearing will be held by the City Council on February 15, 2016, at 7:00 p.m. in the Council Chambers, City Hall, for the purpose of considering the request for a conditional use permit; and RESOLVED FURTHER, that the City Clerk is hereby directed to notify property owners and occupants within three hundred (300) feet of the area proposed by transmitting notice on or before January 29, 2016 and to publish said notice on January 30, 2016. YEAS: NAYS: ABSENT: I, Selina Tisdale, City Clerk, City of Midland, Counties of Bay and Midland, State of Michigan, do hereby certify that the foregoing is a true and correct copy of a resolution adopted by a yea vote of all the Councilmen present at a regular meeting of the City Council held Monday, January 25, 2016.
_____________________________________ Selina Tisdale, City Clerk
CUP #56 set PH
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Report No. CUP #56
Date: January 5, 2016
STAFF REPORT TO THE PLANNING COMMISSION SUBJECT:
Conditional Use Permit #56
APPLICANT:
Midland County Habitat for Humanity
PROPOSED:
1 Single-Family Dwelling on a Parcel
LOCATION:
309 Sam Street
AREA:
0.39 Acres
ZONING:
RB – Multiple-Family Residential
ADJACENT ZONING:
Identical zoning exists to the north, south, east and west
ADJACENT DEVELOPMENT:
North & East: South: West:
Vacant & One family residential Single-family residential Multiple-family residential
BACKGROUND Conditional Use Permit No. 56, the request of Midland County Habitat for Humanity, is to permit a single family dwelling to be located on a parcel located at 309 Sam Street. The property is presently vacant. The proposed dwelling will be constructed as part of a community build, scheduled to start in spring 2016. The subject parcel is zoned RB Residential Multiple Family by the City of Midland Zoning Ordinance. The RB district permits a range of medium to higher density residential uses by right, but permits a single family dwelling only by conditional land use approval. This application has been submitted obtain the necessary conditional land use approval to permit the single family dwelling. For additional background information, in April 2013, the City Council approved a conditional use petition to permit a second single-family dwelling on the lot located immediately to the south (307 Sam Street) of the subject parcel. Commencement of construction did not exist on this residence within one year, and an extension request was never submitted, leaving the approval null and void.
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CONDITIONAL USE PERMIT EVALUATION Article 28.00 of the City of Midland Zoning Ordinance requires that the Planning Commission shall review the application for a conditional land use according to the procedures in this Article, together with the public hearing findings and reports and recommendations from the Planning and Community Development staff, City Engineering Department, Midland County Road Commission, Midland County Health Department, Midland County Drain Commissioner, Fire Department, City of Midland City Police Department and other reviewing agencies. The Planning Commission shall then make a recommendation to the City Council, solely based on the requirements and standards of this Ordinance. The Planning Commission shall submit to the City Council a written recommendation of approval, denial, or approval with conditions within forty-five (45) days of the close of the public hearing required for a conditional land use proposal. Approval of a conditional land use proposal shall be based on the determination that the proposed use will be consistent with the intent and purposes of this Ordinance, will comply with all applicable requirements of this Ordinance, including site plan review criteria set forth in Article 27.00, applicable site development standards for specific uses set forth in Article 9.00, and the following standards: A.
Non-Discretionary Standards 1. The conditional land use shall be in accord with the provisions of the Zoning Ordinance of the City of Midland. The specific criterion for each of the ordinance sections is outlined below. 2. Compliance with all of the standards in Section 27.06(A). a.
Adequacy of Information The applicant has submitted sufficient detail to illustrate the proposal, including a basic site plan illustrating the proposed location of the dwelling as it would be located on the site.
b.
Site Design Characteristics The proposed dwelling would be consistent with the character and design of adjacent and nearby single family dwellings in the area. A single drive from Sam Street will be utilized. This drive and location are considered to be appropriate for the site.
c.
Landscaping A collection of mature trees exists on the site which will largely be retained as part of the proposal. No specific landscaping standards exist for single family dwellings.
d.
Compliance with District Regulations If approved as a conditional land use, the site as proposed will meet all district requirements.
e.
Preservation of Natural Features A collection of mature trees exists on the site and the majority will remain as part of the development. The few trees that will need to be removed will be located near the front of the parcel where the proposed single-family residence will be
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built. f.
Privacy The site does not have or require privacy given the single family residential use proposed.
g.
Ingress and Egress The proposed parcel will have vehicular access via a single driveway from Sam Street. This location is considered appropriate for the site.
h.
Pedestrian Circulation Interior pedestrian circulation measures are not required for single-family residences.
i.
Vehicular Circulation Vehicular circulation will be limited to that of a single family residence.
j.
Parking Sufficient driveway area will be provided to accommodate required parking for a single family dwelling.
k.
Drainage No drainage concerns have been identified in the review of this application.
l.
Soil Erosion & Sedimentation Control Standard soil and sedimentation control measures will be utilized during construction. Final details will be required by the Building Department prior to construction permit approval.
m. Exterior Lighting Single family residential lighting is not regulated by the zoning ordinance. n.
Public Services Adequate public services (including utilities within the road right-of-way) exist to serve the site. Utility connections will need to be made and laterals will need to be installed to serve the residence. Any working within the road right-of-way will require a right-of-way permit from the City Engineering Department.
o.
Screening Screening is not required for a single family dwelling.
p.
Sequence of development This development consists only of one single family dwelling to be added to the existing site.
q.
Coordination with adjacent sites The application impacts only the subject property. Coordination with adjacent sites is not required.
r.
Signs No signs are proposed.
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3. Access to the proposed development shall be in accordance with applicable city ordinances. The site will be accessed from a public road and will comply with city standards for driveway design. 4. Adequate provision is made for fire protection within the site in accordance with Chapter 8 of the Code of Ordinances of the City of Midland. The proposed driveway will provide adequate emergency access to the proposed dwelling. B.
Discretionary Standards (To be determined by the Planning Commission during deliberation on the request) 1. Protection of the Public Health, Safety, and General Welfare The establishment or maintenance of the conditional use shall not be detrimental to the public health, safety, or general welfare. 2. Compatibility With Surrounding Uses The conditional use shall be located, designed, maintained and operated to be compatible with the existing or intended character of that zoning district and adjacent districts. In determining whether this requirement has been met, consideration shall be given by the Planning Commission to the following issues: a. The location and screening of vehicular circulation and parking areas in relation to surrounding development. b. The location and screening of outdoor storage, outdoor activity or work areas, and mechanical equipment in relation to surrounding development. c. The hours of operation of the proposed use. Approval of a conditional land use may be conditioned upon operation within specified hours considered appropriate to ensure minimal impact on surrounding uses. d. The bulk, placement, and materials of construction of the proposed use in relation to surrounding uses. Any proposed building shall be compatible with the predominant type of building in the particular district in terms of size, character, location or proposed use. e. Proposed landscaping and other site amenities. Additional landscaping over and above the requirements of this Ordinance may be required as a condition of approval of a conditional land use. f.
Hours of operation shall be compatible with the surrounding neighborhood.
3. Detrimental Effects The proposed conditional land use shall not involve any activities, processes, materials, equipment, or conditions of operation, and shall not be located or designed so as to be detrimental or hazardous to persons or property or to public health, safety, and welfare. In determining whether this requirement has been met, consideration shall be given to the level of traffic, noise, vibration, smoke, fumes, odors, dust, glare,
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and light. 4. Impact of Traffic The location of the proposed conditional land use within the zoning district shall minimize the impact of the traffic generated by the proposed use. In determining whether this requirement has been met, the Planning Commission shall give consideration to the following: a. Proximity and access to major thoroughfares and other public streets. b. Estimated traffic generated by the proposed use. c. Proximity and relation to intersections. d. Adequacy of driver sight distances. e. Location of and access to off-street parking. f. Required vehicular turning movements. g. Provisions for pedestrian traffic. 5. Adequacy of Public Services The proposed conditional land use shall be located so as to be adequately served by essential public facilities and services, such as highways, streets, police and fire protection, drainage systems, water and sewage facilities, and schools, unless the proposal contains an acceptable plan for providing necessary services or evidence that such services will be available by the time the conditional land use is established. 6. Protection of Site Characteristics The conditional use shall preserve and incorporate the site’s important architectural, natural and scenic features into the development design. 7. Compatibility with Natural Environment The proposed conditional land use shall be compatible with the natural environment and conserve natural resources and energy, and cause minimal adverse environmental effects. 8. Compatibility with the Master Plan and Intent of Zoning Ordinance The proposed conditional land use shall be consistent with the general principles and objectives of the City’s Master Plan and shall promote the intent and purpose of this Ordinance and of the use district. 9. Public Comments One letter in support of the proposal has been received as of January 5, 2016. STAFF RECOMMENDATION The proposed use subject to this review is a single family dwelling. Upon careful review of the requested conditional land use permit, staff is supportive of the proposed land use and the issuance of a conditional use permit for that use. Although single family dwellings are not permitted by right in the RB zoning district, single family dwellings already surround the site to the north, south and east. While higher density residential development could occur on the site, a single family dwelling is both compatible and appropriate given existing land uses in the area. If granted, staff recommends approval of the request for the following reasons and with added contingencies:
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1. Conditional use permits require the evaluation of the objective criteria in this report. This development meets all of the objective criteria. 2. Conditional use permits also allow an evaluation of the subjective criteria listed in this report. Subject to the conditions of approval recommended, this development meets all of the subjective criteria. 3. The proposed use would not be generally detrimental to the general welfare of the adjacent parcels and neighborhood. 4. The site and use are consistent and compatible with abutting and nearby single family residential uses to the north, south and west. Contingencies: 1. One (1) single-family dwelling shall be permitted on the property. 2. One (1) driveway shall be permitted to Sam Street. 3. Approval is granted to the proposed single family dwelling only. Any additional uses of the property shall be reviewed and approved in accordance with the standards of the City of Midland Zoning Ordinance, including the requirements for site plan approval under Article 27. PLANNING COMMISSION ACTION As a conditional land use petition, the Planning Commission may recommend contingencies and place conditions upon its action that it deems appropriate to address or mitigate any perceived impact of the proposed use on the site or adjoining parcels. Staff currently anticipates that the Planning Commission will hold a public hearing on this plan at their January 12, 2016 meeting. If the Planning Commission be satisfied that all required information is available and no additional concerns are identified through the public hearing process, a recommendation to the City Council may then be formulated. If a recommendation is made following the public hearing on January 12, 2016, on January 25, 2016 the City Council will set a public hearing on this matter. Provided both actions take place, and given statutory notification and publication requirements, the City Council hearing will be scheduled for February 29, 2016. Please note that these dates are preliminary and may be adjusted due to Planning Commission action and City Council agenda scheduling. Respectfully Submitted,
C. Bradley Kaye, AICP, CFM Assistant City Manager for Development Services /grm
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MINUTES OF THE MEETING OF THE MIDLAND CITY PLANNING COMMISSION WHICH TOOK PLACE ON TUESDAY, JANUARY 12, 2016, 7:00 P.M., COUNCIL CHAMBERS, CITY HALL, MIDLAND, MICHIGAN 1. The meeting was called to order at 7:00 p.m. by Chairman McLaughlin 2. The Pledge of Allegiance was recited in unison by the members of the Commission and the other individuals present. 3. Roll Call PRESENT:
Bain, Heying, Mayville, McLaughlin, Pnacek, Senesac, Stewart and Tanzini
ABSENT:
Hanna
OTHERS PRESENT:
Brad Kaye, Assistant City Manager for Development Services; Grant Murschel, Community Development Planner; and twelve (12) others.
4. Approval of Minutes Moved by Heying and seconded by Mayville to approve the minutes of the regular meeting of December 8, 2015 as written. Motion passed unanimously. 5. Public Hearing a. Conditional Use Permit #56 – initiated by Midland County Habitat for Humanity to permit a single family residential dwelling in an RB Multiple-Family Residential zoning district on the property located at 309 Sam Street. Murschel gave the staff presentation and began by explaining the location of the subject site within the city. He indicated that the site is currently zoned RB Multiple-Family Residential and that a single-family home can only be developed through approval of a conditional use permit. He indicated that the proposal meets all setback requirements and all other zoning district regulations. Public utilities of sanitary sewer, storm sewer, and water all exist within the Sam Street right-of-way. The proposal will require tapping of these utilities. Staff have not identified any further issues with the site and are supportive of the proposal, as indicated in the staff report with the recommended contingencies. Heying questioned how close the house to the south is located to the property line. Murschel indicated that he did not know the exact measure but that it is very close, within ten feet. The proposed house is shifted towards the north side of the subject property, as close as permitted under the zoning regulations in order to maximize the distance between the existing house to the south and the new construction. Bain asked for clarification on the ownership of the property. Murschel clarified that Habitat for Humanity owns the subject property as it was recently purchased from Midland County after tax foreclosure. Jennifer Chappel, Executive Director of Midland County Habitat for Humanity, spoke as the applicant. She confirmed that her organizations holds the title to the subject property. She mentioned that the confusion might be from other conversations that she has been a part of with owners of surrounding parcels, including Ms. Sirrine who submitted the letter of support. Chappel indicated that her organization has a purchase agreement currently for the property to the immediate north, 311 Sam St.
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Planning Commission Minutes January 12, 2016
There were no comments in support or opposition of the proposal from the public in attendance. The public hearing was closed. Chairman McLaughlin asked the commission if anyone was not in favor of waiving the procedural requirements and formulating a recommendation on this proposal this evening. Hearing none, he entertained a motion to waive the procedural requirements. A motion was made by Senesac to waive the procedural requirements to delay a decision on the petition until the next meeting. The motion was seconded by Mayville. It was approved unanimously. It was moved by Senesac and supported by Bain to recommend approval of Conditional Use Permit #56 to permit a single family residential dwelling in an RB Multiple-Family Residential zoning district on the property located at 309 Sam Street, with the following contingencies: 1. One (1) single-family dwelling shall be permitted on the property. 2. One (1) driveway shall be permitted to Sam Street. 3. Approval is granted to the proposed single family dwelling only. Any additional uses of the property shall be reviewed and approved in accordance with the standards of the City of Midland Zoning Ordinance, including the requirements for site plan approval under Article 27. YEAS: NAYS: ABSENT:
Bain, Heying, Mayville, McLaughlin, Pnacek, Senesac, Stewart and Tanzini None Hanna
6. Old Business None 7. Public Comments (unrelated to items on the agenda) None 8. New Business a. North Saginaw Road – Public input session on Future Land Use Plan Designation Updates Kaye gave the staff presentation of the area being reviewed for changes or additions to the Future Land Use map of the City’s Master Plan. The focus area is on the western side of the city extending to the Midland Urban Growth Area (MUGA) boundary. The intent of this public input session is to solicit input from the public and possibly property owners within the focus area. Thomas McCann, owner of many properties in the focus area including 5828 N. Saginaw Road, believes that property along N. Saginaw road should be developed as commercial as future residents in the area will need access to shops or services in close proximity. Michael Dennett, owner of 6715 Herbert Road, indicated that he has made a large amount of investments in his home. He is concerned about how future commercial development would occur and whether or not it would negatively impact the value of his property. Valerie McCloy, owner of 7022 N. Saginaw Road, indicated that the commercial designation of her property and the properties to the east concerns her about future development. She does not know how it might impact her property value in the long term. Dana Murray, owner of 5706 & 5712 N. Saginaw Road, indicated that there appears to be some inconsistency with the future land use designations. She explained the commercial nature of the Page 2 of 4
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Planning Commission Minutes January 12, 2016
current Homer Township designations and how it differs from the plans of the City. She requested that her property be included with the abutting commercial designation to the east. Josh Vinson, owner of 767 Lambert Road, indicated that he would like to remain in the county and not in the city since he enjoys the hunting opportunities he has on his property. Bill Tuttle, of 1420 Joy Bell Lane, West Branch, wanted to know the difference between medium and high density residential. Kaye explained that the densities are determined mostly on units per acre. Low density residential is intended to provide for single-family residential uses. McLaughlin explained that the intent of this input session is to understand what the property owners in the area want as it pertains to future land development. The future development is determined by what future land use designation is given to the parcel. The future land use map, which is part of the Master Plan, is used as a guide for consideration of future new zoning or zoning amendment requests. Kaye further explained how the MUGA area is a policy boundary area. Annexation agreements are in place which determine how annexation will take place to facilitate land transferring from the surrounding townships to the city within the area. The city does not force annexation as it is a choice of the property owner. Per Senesac’s request, Kaye explained further that the intent of the future land use map is to determine what the area should head towards, land use wise, in the next ten to twenty years. Kaye explained the process going forward regarding the formal Master Plan amendment process, which includes additional public input opportunities and public notifications. The Planning Commission will hold future public hearings on the matter, and the City Council will be consulted as part of the process. Senesac explained that he liked the format of this input opportunity as it provided an early opportunity for area residents to give input on the matter before the formal process begins. 9. Communications Planning and zoning magazines were distributed to the members of the commission. 10. Report of the Chairperson None 11. Report of the Planning Director Kaye commented that the Creative 360 rezoning request was approved by City Council during their meeting last evening. This action was in line with the recommendation of approval by the Planning Commission. 12. Items for Next Agenda – January 26, 2016 a. Site Plan No. 343 – initiated by LSG Engineers & Surveyors on behalf of The Kroger Co. of Michigan for site plan review and approval for a 124,942 square foot Kroger Marketplace and fuel station, located at 315 Joe Mann Boulevard. POSTPONED This item has been postponed due to concerns about traffic impacts in the subject area. The applicant has submitted a traffic impact study which is currently under review by the City’s traffic consultant. Staff is waiting until the results of the consultant’s review are known and can be considered with the applicant.
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Planning Commission Minutes January 12, 2016
b. Annual Zoning Ordinance Text Amendments 13. Adjourn Motion by Heying and seconded by Senesac to adjourn at 8:04 p.m. Motion passed unanimously. Respectfully submitted,
C. Bradley Kaye, AICP, CFM Assistant City Manager for Development Services MINUTES ARE NOT FINAL UNTIL APPROVED BY THE PLANNING COMMISSION
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