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AGENDA

Committee of the Ways and Means Monday, April 19, 2010 @ 12:45 p.m.

Tenth Floor Conference Room - City Hall

Councilmember Carol Wood, Chair Councilmember Eric Hewitt, Vice Chair Councilmember Tina Houghton, Member

I. Call To Order

n. Roll Call

m. Approval of Minutes
• March 8, 2010
• March 22, 2010
• March 29, 2010
• April 5, 2010
IV. Public Comment V. Discussion/Action

1. Creation of a Foundation

2. Reports from the Internal Auditor:

• Annual Report on the Parks Millage Fund •. Report on the Northwest Initiative

3. City Council Budget

4. City TV Budget

VI. Receipt of Communications

vn. Adjourn

vm. Pending

Local preference ordinance

• Update on IRS New Rules on Tax Increase Prevention & Reconciliation Act Waste Management on Recycling and Refuse

From:

To:

Date:

Subject:

"Mary Haskell" <mhaskel@cityofeastlansing.com> "Diana Bitely" <dbitely@lansingmLgov>

4/8/2010 12:16 PM

Charitable contributions & endowment fund info

Hi Diana,

Here's some info on the endowment fund the city has set up and on accepting charitable contributions in general.

As a political subdivision of the State of Michigan pursuant to section 170(c)(1) of the Internal Revenue Code, donations to City are deductible for federal income tax purposes. Such donations are likewise deductible for purposes of the Federal Estate and Gift Tax pursuant to IRC Section 2055(a)(1) if made by a decedent pursuant to a trust or will.

In the event that noncash charitable contributions are made to the City (real or personal property) in excess of $500, Form 8283 may be required to be filled out with the donor's return and City will sign Part IV-Donee Acknowledgment. This would include appreciated stocks or securities or other tangible or

intangible real or personal property. .

To set up an endowment fund of a certified community foundation, the City uses the Capital Regional Community Foundation. Our contact there is Rick Comstock 517-272-2870. A list of other certified community foundations is also available from the Michigan Dept. of Treasury.

The endowment fund is a permanent type fund so the donor can not only get the advantage of a itemized tax deduction for federal income tax purposes but also the subject of an income tax credit on the Michigan Tax return (subject to a ceiling limit). There are rules about the amount of the principal of the fund that must be kept intact and the amounts of the income that can be distributed and expended for charitable purposes. The endowment fund canlwill accept non-cash gifts (securities, land, real estate) but works with their broker to convert these types of gifts to a cash form.

Hopefully this helps, Mary

According to Rick, the endowment fund need a minimum of a $10,000 corpus

Mary L. Haskell, CPA Finance Director

City of Eas·nansirlg .. Finance Dept. 41 0 Abbott Road

East l.anslnq, MI 48823

(517) 319-6917 mhaskel@cityofeastlansing.com

»> "Diana Bitely" <dbitely@lansingmLgov> 4/7/2010 4:05 PM »> That would be perfect! Thank you! Sorry, I must have gotten confused!

>>> "Mary Haskell" <mhaskel@cityofeastlansing.com> 4/7/20103:08 PM »> Hi Diana,

Karen forwarded me your email (she is a treasury clerk). She brought it to me, not knowing anything about the topic (and I was glad she did since I'm the person you talked to).

I do have your information. I'm right in the middle of something. Would it meet your time table if I send it

-_._ .,..~-~

TO:

FROM:

DATE:

SUBJECT:

City Of Lansing Internal Audit 483-4159

A'Lynne Robertson, Council President Virg Bernero, Mayor

Chris Swope,City Clerk,,/'

Arnold C. Yerxa, Internal Auditor

March 23,2010

Annual Report on the Parks Millage Fund

I From the 3-29-10 CouncIl Meeting Packet

: REFERRED TO THE COMMITTEE ON WAYS' . AND MEANS AND THE INTERNAL AUDITOR

AND REFERRED TO THE COMMITTEE OF T

: WHOLE/BUDGET AND REFERRED TO THE HE . MAYOR

This report is being forwarded according to the Duties of the Internal Auditor as described in the Charter of the City of Lansing.

It is requested that this report be referred to Council for their review and appropriate action.

budgetrequestfy 1 O.doc

City Of Lansing Internal Audit 483-4159

TO:

A' Lynne Robertson, Council President

FROM:

Arnold C. Yerxa, Internal Auditor

DATE:

February 26, 2010 Revised March 23,2010

SUBJECT:

Annual Report on the Parks Millage Fund

GENERAL

This report is required as part of the FY 2009/2010 budget resolution #213, budget policies, paragraph 16 and covers only the Parks Millage Fund. Other CIP Funds and or accounts will follow under separate cover.

Attached is the report that shows the totals for each of the projects project during the life of the millage. The first sheet is a summary of the first eighteen years by groups of expenditures, and this shows how the millage has been spent by groups as compared to the total millage.

The remainder of the report breaks out the projects by groupings and shows the amount appropriated to, each project, total amount expended, the unexpended balance, the amount encumbered and the amount

available for each project. .

The City of Lansing has received $34,302,589 in Millage funds, of that in the most recent years $4,133,839 (12.05%) has been spent thru the parks general fund operations accounts. Annually tills has been running around 50%. See Park.Millage Fund Report attached as the last page of this report.

COMMENTS

The following comments will explain some of the activity with in the projects. The comments will be in

the order of the project account numbers. .

Open air proj ect Fenner Center Deck Replacement (IV -F) had a cash receipt of $340 which was recorded in the account for buildings not in the account for Capital Outlay/Construction.

Non- Designated/Misc. project Forestry Inventory eVI-A3) had an approved budget in FY 09 of$150,000 which was transferred to fund balance for FY 09 year end budget adjustments as approved by resolution.

Cemeteries project Mt Hope Cemetery Imp (V -E) $3,500 was spent on Chimney Repair. In FY 09 $9,320.60 was spent on design and $14,218.86. To date ill FY 10 design costs paid are $6,880.77, project costs are $30,407.03 and there are open purchase orders for design costs of$2,763.47 and project cost of $80,868.26 and these cost are split between capital improvements accounts in both the 410 Fund and 412 Fund - Parks Millage. The accounts involved are to track donations from the Foundation and the City's match.

1.) J request justification as to what the Chimney Repairs have to do with the Mount Hope Basin

project?

Open air project St Joe Park Mid MI Football Field (IV-Yl) balance of $46,000 transferred to St Joe Park Restroom project as approved by resolution.

pkmil1agefy09.doc

Non - Designated/Misc. project CAD Software (Vl-O) this appropriation was approved for FY 2006 and still no action has been taken.

2.) What is the justification to continue this encumbrance?

River Walk project Pavements/Walkways River Trails (JI-K) $3,349.50 recorded on June 19,2009 for Mayor's May 09 Press Conference.

3.) The press conference has no appropriation with in the Parks Millage Capital Improvement

accounts. See Recommendations section of this report.

While reviewing the purchase orders Hound P.O. numberP081755 approved 08120/09 as change order #1 for additional paving of approximately 1253 feet of 10' path. This expenditure was for a walkway at Lewton Elementary School on West Mount Hope. According to the P.O. for paving the expenditure was for $32,890. I'm not sure if this included the prep work to design this and the grading to layout this

walkway. .

4.) As Internal Auditor I believe this to be an improper use of City and or City Parks Millage Funds

as this walkway 'was constructed on Lansing School District property, and this project is not part of the description of projects as proposed and approved in the FY 09 or FY 10 Budget.

Non - DesignatediMisc. project Bleacher Repairs (VI -M) Purchased 12 bleacher sets, Inv. Dated 0 5114/09 not paid until 07115/09,

5.) Why did it take 2 months to process payment?

6.) There is a problem determining the date a purchase order is closed either by fully.paying,

canceling or disencumbering. Determining if transactions recorded against the purchase orders happened prior to or after "closing" is not transparent with out a date of closing being available.

Open air project Reuter Park Fountain (IV-AY) P.O. # P08I051 had a balance of$2,035 as of June 30, 2009 according to the P.O. The Encumbrance Transactions report for this account showed as of 06/30/09 a "Payment" of $2,035 thus a zero balance and at some. point in time this was disencumbered. I question how a "Payment" can be processed against a disencumberedPx). Also as of June 30,2009 there is a "Payment" that was recorded for P.O. # P081856 for $500 and the original P.O. was not part of the Encumbrance Transaction Report. Also P.O. P081595 shows being fully paid with a balance of$19,600.

7.) These are just a jew examples oj the purchasing system and the accounting system not sharing the proper information. This could be program problem or a Lack of Training oj employees assigned to enter data for payment in order to present the information correctly.

River Walk project River Trail Mt Hope !Hawk Island (II-O) of the $53,000 spent in FY 09 all was for Consultants.

NOll- Designated/Misc. project Repairs and Maintenance City Wide-Buildings (VI-B)$4,756.57 paid something purchased from Yeadon Fabric Domes for south Washington Ice Park recorded in an account

with no budget. .

Design and Management project Contractual Services (VII-D) P.O. 80405 disencumbered yet payment applied.

Non - Designated/Mise, project Park Playground Equipment (VI-H) P.O. 80801 shows as disencumbered but is still part of the encumbered balance as of 06/30/09. P.O. 81748 is for Burchard Playground Project which could have had transfers executed and a project account set up. Also playground equipment for Hull Park could have been setup in a project account. There is an expenditure account for Wainwright Park, yet

pkmillagefy09.doc

some of the costs for the Wainwright project have been charged to this account as, opposed to being charged to the Wainwright account. Also purchased were 4 natural climbers to be installed in four city parks, no identification as to which parks received these clin'lbers as a cost 0($]7,500 each.

Renovations for Moores Park have been traced to three different project accounts, City Wide Parks Repairs, Pavement Repairs and Moores Park Site Renovations,

8,) Whv is it necessary to use three new project accounts when there is alreadv an existing project

account titled Moores Park Renovations?

Open air project Hunter Pool Renovations (IV-W) some of the design work is charged through The Contractual Services account. At some point in the past I recall that design work was to be matched to the project in order to maintain all cost for a project in one account.

9,) Why are the costs for design work not transferred to or originally set up in the proper project

account?

Open air project Sycamore FirstTee (IV -A V) spent $3,200 with available balance of $3,000,

Enclosed Facilities project Foster Park Restrooms (Ill-VI) has expenditures charged to three expenses accounts with only one having an appropriation, and the project combined is over budget by $24,000 with no apparent attempts to transfer funding to correct this situation. included in this account are the following 11/11/08 Prep and Paint Mt. Hope Cemetery for $179 and Ranney Park Change Orders for $5,356.

Open air project Frances Garden Renovation (IV-M2) the cost of plants and flowers Invoiced in June 2009, were not paid for until 1127 /2010.

10,) Why did this take so long to pav?

Enclosed Facilities project Gier Gym Expansion (Ill-DI) the $200,000 appropriation for FY 08 was recorded in project account #46131 titled Gier Park Expansion, in FY 09 the $300,000 appropriation was set up in project account #46134 titled Gier Gym Expansion PHIl, because it was very important to account for this project byPhase (PH), However in FY 10 apparently the importance of accounting by phase is not as important because the $300,000 appropriation was recorded in project #46131 where the original appropriation was recorded. The budget amounts were established each year in order to have the funds in place to start and complete this project in one construction season,

RECOMMENDATIONS

In addition to the questions as underlined and or italicized above the following items also need to be responded to by a written response by April 30, 2010,

There needs to be justification to support the charge of a Press Conference to a Capital Expenditure account.

• What is the depreciable live ora press conference?

• Whv was there no al2Prop7"iation made to cover this expenditure as this was not part ofthe a12Proved approp7'iations within the budget,

• J have determine this expenditure to be an ineligible expenditure o(Parks Millage Funds and the

Parks Millage Fund and the Citv should be reimbursed .

pkmillagefy09.doc

The use of Parks Millage funds to build a paved walkway on Lansing School Property, Lewton Elementary School, for the amount of $32,890.

• Where are the design cost and the excavating cost for this project recorded and what is the amount o(these expenses?

• Since this project was not in the budget project description. there was no request for appropriating funds and this project is not on City land 1 request written justification for proceeding·to construct this project.

• 1 determine this to be an inal2Propriate expenditure and request the cost be recovered on behave

of the City. . .

There needs to be a discussion as to why the purchasing program and accounting program are not getting the same information. Also is there a way to show the date that a purchase order is cancelled or disencumbered? There needs to be a plan of action to correct these problems. Refer to Memo titled Accounting Data Merging with Purchase Orders, revised March 23, 2010.

When a project goes over budget the payment should not be allowed andlor the purchase order should not be allowed to be approved until funds are transferred. This should apply to all accounts not just project accounts. There needs to be a plan of action to correct this problem.

C.c. Council Members Mayor's Office Clerks Office

pkmillagefy09.doc

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CITY OF LANSING I I I
PARKS MILLAGE FUND I I I
SCHEDULE OF EXPENDITURES & APPROPRIATIONS OF PARKS MILLAGE
FY06 FY 07 FY08 FY 09 FY 10


Parks Millage 2,267,000 2,335,010 2,435,405 2,465,546 2,480,100

Parks Millage Fund Balance - 413,418 - 515,247 300,000

Total available for appropriation 2,267,000 2,748,428 2,435,405 2,980,793 2,780,100


Uses of Parks Millage Funds
General Fund
Kids Camp 35,785 38,890 38,247 38,263 40,000
Field Services 70,881 - - - -
Lifetime Sports Equipment - 65,000 - - -
Vehicle & Equipment Maintenance 117,007 524,638 - - -
Grounds & Landscaping 90,817 . 1,130,354 1,197,158 1,229,284 1,280,100

Amount Used for General Fund 314,490 1,758,882 1,235,405 1,267,547 1,320,100

Zoo Fund 111,192 111,192 - - -
Cemeteries Fund 13,566 13,566 - - -
Golf Fund 196,186 121,016 - 275,640 200,000
I I
Amount Used for non Gen Fund Parks Funds 320,944 245,774 - 275,640 200,000

Capital Projects (412 Fund)
Professional Fees - 84,947 80,000 81,701 -
I City Wide Maintenance & Repair 100,000 60,000 100,000 80,000 180,000
I I South Side Community Center Repayment 70,000 83,825 - - -
[Soulh Side Community Center Additional Payment - 50,000 - - -
I River trail Repairs & Maintenanoe - 60,000 128,000 78,000 100,000
River trail Acquisition of ProBowl Property - 10,000 - - .-
River trail Map - - - - 50,000
Dog Park 5,000 45,000 - - -
Playground Renovations 75,000 - 232,000 210,000 210,000
Foster Park Restroom - - 100,000 - -
st Joe Park Restroom - - 50,000 - -
Moores Park - - 50,000 - -
Ranney Tower - - 150,000 - -
Frances Garden - - 30,000 - -
- Gier Gym Expansion 200,000 300,000 300,000
- -
Bleaoher Replacement - - BO,OOO - -
Mt Hope Cemetery Imp - - - 65,000 -
Fenner Nature Center Deck Replacement - - - 45,000 -
Frances Park Imp Phase 1 - - - 150,000 100,000
Frances Park ImpDNR Grant Match - - - 197,905 -
Forestry Tree Inventory Software - - - 150,000 -
Davis Park Trail Imp - - - 50,000 -
Forestry Tree planting - - - 30,000 -
Maguire Park Improvements - - - - 60,000
Kircher Municipal Ball Field - - - - 160,000
Hunter Park Shelter - - - - , 100,000
.- Various Projects FY 06 1,077,000
Parks Millage Budget Control (Hunter Park) - 350,000 - . .

Amount Used for Capital Improvements 1,327,000 743,772 1,200,000 1.437,606 1,260,000

Budget Control 304,566 - - - -

Total Uses 2,267,000 2,748,428 2,435,405 2,980,793 2,780,100
Balance - - .. ~ - ~---.--
IN FY 06 there was a transfer from Parks Millage of $64,000 to purchase in G/F a 5800 Mower. 2126/2010

pkmiliage07.xls

City Of Lansing Internal Audit 483-4159

t-rom the ::S-29-1U Goune" M

eetlng f-'aCKer

REFERRED TO THE

MEANS AND THE INT~~~~~TTEE ON WAYS AND REFERRED TO THE COMMliTAUDITOR AND

WHOLE/8UDG EE OF THE

MAYOR AND R~~~~~E~;oERTRHED TO THE

ATTORNEY E C1!y

TO:

A 'Lynne Robertson, Council President Virg Bernero, Mayor

Chris Swope, City Clerk .,/

FROM:

Arnold C. Yerxa, Internal Auditor

DATE:

March 23, 2010

SUJ3JECT:.

Northwest Initiative (N\VI)

This report is being forwarded according to-the Duties of the Internal Auditor as described in the Charter of

the City of Lansing. .

It is requested that this report be referred to Council for their review and appropriate action.

budgetrequestfy 10. doc

City Of Lansing Internal Audit 483-4159

TO:

A'Lynne Robertson, Council President Carol Wood, Chair Ways and Means

FROM:

Arnold C. Yerxa, Internal Auditor

DATE:

February 10,2010 Revised March 23,2010

SUBJECT:

Northwest Initiative (NWI)

Council action on March 26, 2001 adopted Ordinance No. 01027, which created Chapter 240 of the Codified Ordinances of Lansing, Michigan, titled Department of Human Relations and Community Services.

Section 240.02 established the following Definitions

(a) "Basic human services," as used in this chapter, shall mean programs operated by' local agencies that meet basic needs andlor provide life skills development, employability development or health or mental services.

(b) "Community supported agencies," as used in this chapter, shall mean' organizations that receive separate City Council funding that maybe allocated through the Human Relations

and Community Services Department (HRCS); . . .

(c) "Cultural arts programs," as used in this chapter shall meanorganizations that facilitate community access to theater, music, museum, art and related activities.

Section 240.03 establishes the Funding" formula forHRCS funding. The City of Lansing General Fund Budget shall include, at a minimum for each fiscal period, an appropriation equal to 1.25 percent of general fund revenue as adopted in the annual budget for the purpose of funding basic human services.

Section 240.04 states that funding through the HRCS pursuant to Ordinance No. 01027, shall address basic . human services needs as identified by HRCS.

The original contract, with NWI, program goals and program objectives, appear to follow chapter 240. See attached contract pages. This contract was for the amount of $20,000 and was in the budget justification Operating Expenses, rent/Utilities @ 12 months and the effective term of July 1, 2009 through June 30,

2010. . .

As of January 1,2010 there is an amendment to the original agreement to be effective January 1,2010 through June 30, 2010.

Under the amendment Section 1 of Part I (Program Goals), is modified to add subsection "C." as follows:

"To establish a new Corridor Improvement Authority (CIAA) that will enable local business owners to assess themselves and fund enhanced services for security, maintenance, marketing, economic development, parking, special events or other activities as they determine necessary to improve their mutual growth, benefit and well-being within the defined Northwest Initiativeboundaries,"

The Program Objectives have also been modified and contract pages are attached.

The Compensation, Method of Payment and Reporting, Section 5 of Part I, have been increased by $17,500 for the Cost Category of Personnel for said term.

HRSCnwilO.doc

Funds have been certified as available in Accounts for North Neighborhood Center and Discretionary within the HRCS accounts. This Certification was done under the signature of Gerald Ambrose, City Controller.

SUMMARY

This amendment to the original contract is not in compliance with the City of Lansing Ordinance No. 01027, dated March 26,2001, which created Chapter 240 of the Codified Ordinances of Lansing, Michigan. I find no relation of a Corridor Improvement Authority to the Statement of Purpose as stated in Chapter 240, as above, or tothe definitions contained in Chapter 240.

As Internal Auditor I find this to be an improper use ofHRCS funding as stated in Chapter 240. Funding for the ClAA should come from a source other than HRCS' 1.25 percent formula.

According to the charter of the City of Lansing Article 5 BOARDS AND COMMISSIONS, Section 5-103 . APPOINTMENT OF BOARD MEMBERS, " ... The Mayor shall appoint persons to all such boards, commissions and committees with the advice and consent of the Council...".

As Internal Auditor I question ifthere is a need for Council action to. recognize the Corridor Improvement Authority for the appropriation of funds?

RECOMMENDATIONS

. I request a Legal Opinion as to the formation and funding of the Corridor Improvement Authority and.asto . the appropriate procedure for forming a new authority. This response should be completed within 30 days.

HRSCnwilO.dcic

CONTRACT BETWEEN

THE CITY OF LANSING

AND

NORTHWEST INITIATIVE (North Neighborhood Center)

PART I

. THIS CONTRACT entered into this day of , 2009

effective from JULY 1,2009 through JUNE 30, 2010, by and between the CITY OF LANSING, a municipal corporation, organized and existing under the laws of the State of

. Michigan, through its Human Relations & Community ServicesDepartment, hereinafter called flH.R.C.S.D.Il, and NORTHWEST IT\1JTIATlVE, a non-profit organization, organized and

existing Under the State of Michigan, hereinafter called the "Contractor". .

WITNESS THAT:

·WHEREAS, the City of Lansing, through the H.R.C.S.D., desires to engage the Contractor to perform certain services and activities; and

WHEREAS, the Contractor agrees to perform such services and activities in a lawful, . satisfactory, and proper manner and in accordance with all policies, procedures, and requirements which have been. or, from time to time, may be prescribed by the Human Relations and Community Services Department,

NOW, THEREFORE, the City of Lansing and the Contractor do mutually agree that the Contractor shall meet and perform the Program Goals and Program Objectives within the stated Time of Performance and for the Compensation as hereafter provided, and comply with the terms and conditions in PART II, all as follows:

1. Program Goals ".':' "':, .; " ,:. u ..'

A. Stop blight and deterioration of Iow-income neighborhoods through raising residents'

awareness of services within the community.

B. Strengthen individuals, families and neighborhoods by building relationships between neighborhood groups, residents and community resources such as schools, faith-based organizations, businesses, community organizations and government.

2. Program Objectives

A. Provide 150 (annual unduplicated count) residents/organizations/partners with yearround access to the North Neighborhood Center(NNC) and a monthly calendar of events to provide a base of support for neighborhood groups and residents.

B. Conduct targeted outreach to 1,000 low income residents (annual unduplicated count), via door-to-dcorcanvasslng and other venues, to survey needs and assist with access to. available community resources and services.

C. Provide awareness and six (6) skills bu,ilding:war~shops(s:eminars/classesto address

a range of topics such as: .

Health care access, parenting, smoking cessation,finance/money management.Jeadership skills - targeting 50 adults (annual unduplicated count);

Building self-esteem, substance abuse and delinquency prevention, leadership skills, health and nutrition, life skills - targeting 50 youth (annual

unduplicated count). '

D. Increase nutritional awareness and access to fresh produce and other food items for 500 individuals (annual unduplicated count) through participation with Food Movers Program, the development of cooking and nutrition classes, assisting residents to enroll for food stamps, and the coordination of children's garden projects.

E. Provide 1,800 resident households (annual unduplicated count) with a monthly newsletter containing pertinent information about events, activities and resources available in the Lansing area.

3. Measurable Outcomes

A. Pursuant to "2A" above, 86% of individuals and/or organizations (129) will indicate, in response to quarterly surveys administered by the Contractor, that they have a favorable (score of good or better) impression of the services received while at the center, as indicated by survey results compiled and reported on a quarterly basis.

B. Pursuant to "2B II above, 85% of participants (850) will have received services from

the NNC andlor have been referred to other programs that could provide assistance, as documented by referral notes and program sign-in sheets.

C. Pursuant to "2C" above, 85% of participants (85) will have attended a workshop and indicate, via a survey tool provided at the end of the workshop, their personal assessment of how the workshop assisted them in improving their lives. Survey results will be tabulated and reported on a quarterly basis.

D. Pursuant to "2D" above, 85% of residents (425) will indicate that the services provided by Food Movers Program and other food assistance programs has assisted them to be able to feed their families through the end of the month, as documented by a survey tool to be provided twice a year and tabulated for quarterly reports.

E. pursuant to "2E" above, 100% of northwest Lansing households (1 ,800) will know about services provided by the North'West Initiative and North Neighborhood Center . (NNC), as documented by sign-in sheets and monthly program interaction forms ..

3. Time of Performance.

A. On July 1, 2009 the Contractor shall commence performance of the services required. under this Contract

B. The Contractor shall continue to perform such services and activities until expiration of this Contract on June 30,2010 unless otherwise terminated pursuant to the terms of this Agreement. '

4. Compensation and Method of Payment.

A. As full and complete compensation for the Contractor's satisfactory performance under and completion of this Contract, the City of La rising hereby agrees to pay the Contractor a total amount of TWENTY THOUSA..l'ID AND 00/100 ($20,000.00) DOLLARS, from the City of Lansing General Funds.

B. It is expressly understood by and between the City of Lansing and the Contractor that 'in 110, event shall the total compensation and reimbursement, if any, to be paid the Contractor, exceed the maximum sum of TWENTY THOUSAND AND 00/100 ($20;000.00) DOLLARS from the City of Lansing General Funds.

C. Contractor agrees to provide any additional money, services, and physical resources which may be required to complete its performance of this Contract, in accordance with the budget limitations set forth in the Budget Sheets of this Contract.

D. Contractor shall agree to expend the funds on a reimbursable basis, or as mutually agreeable between the Contractor, the H.R.C.S.D., and the Controller's Office.

E. Comply with reporting requirements by submitting the following to ti1e Human Relations and Community Services.Department by the 20th of the month following the reporting period:

Monthly Finance Reports

Quarterly Activity Objectives Reports

• Quarterly Activity Outcomes Reports Quarterly.Program Management Reports

PART III

CITY OF LANSING

TOTAL CONTRA.CTBUDGET

CONTRACT PERIOD JULy 1, 20~9 to JUNE 30,.2010

AGENCY NAME: NORTHWEST INITIATIVE

SHARE

CITY OF L_4.NSING SHARE

COST CATEGORY

ESTIMATED COST

n) PERSONNEL

$ 61~000.00

$

0.00

(2) FRINGE BENEFITS

(3) OPERATING EXPENSES

6,000.00

0.00

26,150.00

20,000.00

(4) EQUIPMENT

3,000.00

. 0.00

TOTAL

$ 96,150.00

$20,000.00

CITY OF. LANSING

BUDGET JUSTIFICATION

CONTRACTPE.RlOD.JULY 1, 2009 to JUNE 30,20.10

AGENCY NAME: NORTHWEST INITIATIVE

COST

CATEGORY

PERSONNEL:

FRlNGE BENEFITS:

OPERA TING EXPENSES:

DESCRIPTION OF ITEM VALUE

Rent/Utilities @ 12 months

TOTAL:

AMOUNT OR

OF ITEM

$ 0.00

$ . 0.00

$ 20,000.00

$20,000.00

I

l

I

I

i

I

i I I

1

I

.-4. .

,.r~,

CONTRACT AND AMENDM:ENT RECEIPT

Received from HUMAN RE.LATIONS ~ CO~NIT;Y SERVICES DEPART~NT

signed Contract(s) ; Amendro.~nt(s) .4-:- for; .

r1o~ Wist ~'T;~~'v~

Signature Copy #1.

(City Clerk's Official Fil~)

s~nrreCopy#2 . dw;a ~

(HRCS Copy)

7009 0080 DODD 6908 9660

Signature Copy #3 (Agency's Signed Copy)

Initials

Date

___ Financial Report _----:-_Program Management Report ___ Budget Revision Request ___ Agency Checklist

___ Standard Operating Procedures (SOP) For Human Services Contra ct Compliance ___ Activity Report(s)

1. Outcomes

2. Obj cctivcs

Date

'. .

/ /lo/O?!

D~te

1/7/0

r'

. Date

AMENDMENT TO AGREEMENT

BETWEEN·

THE CITY OF LANSING

AND

NORTHWEST INITIA~IVE (North Neighborhood Center)

WHEREAS, the City of Lansing and Northwest Initiative, entered into a Contract, with an effective term of July 1, 2009 through June 30, 2010, in order to provide certain services; and,

WHEREAS, the City of Lansing and Northwest Initiat~ve, do now desire to .amend said Contract;

NOW, THEREFORE, the City of Lansing and Northwest Initiative do mutually agree to amend this pt day of January, 2010, said Contract as follows:

, '

1. Section 1 of Part I (Program Goals), is modified to add Subsection "C." as follows: "To establish a new Corridor Improvement Authority (ClAA) that will enable local business owners to assess themselves and fund enhanced . services ·~for security, maintenance, marketing, economic development ,park·ing, special events or other activities as they. determine necessary to improve their mutual economic growth, benefit and well-being within the defined Northwest Initiative boundaries."

2. Section 2 of Part I (Program Obj ecti ves) , is modified to add

Subsections F through N as follows:

"F. Utilize the National Trust for Historic Preservation "Main Street Four-Point Approach" to commercial district revitalization and refine detailed plan and schedule.

G. Maintain business roster and study of customer base demographics.

H. Conduct Job Inventory and maintain list of full and parttime jobs within the NWI boundaries.

I. Organize a membership drive through establishing the Wests·ide Commercial Association (WCAl, personal contacts with each business in the area, monthly newsletter and website updates to promote events and doing business in the area.

J. Conduct regular business membership meetings to promote a forum for exchange of information about economic development incentives, commercial property renovation and marketing strategies and recruit 12 new members and profile 12 new businesses.

K. Apply for and administer 2 fa<;ade improvement grants and otherwise develop incentives for property improvements within the target area. Facilitate 2 business expansions and

survey 30 businesses to assess retention needs and facili t.a't e retention services.

L. By October 31, 2010, draft organizational documents for a CIAA in consultation with the city's Economic Development Corporation.

M. ~evelop promotional literature featuring the businesses within the Westside Commercial District and promoting the area through beautification projects, festivals, tours, etc~ N. Complete at least 25 visits with locally owned businesses within approximately 40 miles to encourage them to expand in the West Saginaw area and provide documentation of results./I

3 _ Section 3. of Part 1. '(Measurable Outcomes) is modified to add Subsections F through N as indicated in the following table:

Schedule of Activities and Performance Measures' Proposed Completion date
or units

Performance Measurement -Goal C.
1. Number of loans provided to businesses 1
2. Number of business facades improved 2
3. Number of business expansions 2'
4. Number of new jobs created ' , 10
5. Number of business retained 75 "

Pursuant to "2F" above - Create Plan Using the Main Street Approach
1. Impl ernent Organization Component with localbusiness owners 6 businesses and other
stakeholders
2. Implement Promotion Component with local business owners 6 businesses and other
stakeholders
3. Implement Design Component with local business owners 6 businesses and other
stakeholders
4. Implement Economic Development Component with local business owners 6 businesses and other
stakeholders
5. Consult with Lansing Economic Development Corporation at key steps On-going
6. Work to develop other funding and resources for business owners On-going
7. Develop work-plans for each of the four program components listed above, 3/1/2010
8. Attend trainings offered by MSHDA's Michigan Main Street Program and On-going
consult with MSHDA staff on program implementation.

Pursuant-to "2G" above - Baseline Business Roster
I. S ubrn it updated business roster. 1/18/2010
2, Survey businesses to determine their annual sales volume and customer base. 9/1/09 -12/1/2009

Pursuant to "2H" above - Baseline list offull and part-time jobs
1, Survey businesses to determine number and type offull & part-time jobs. 9/1/09 -121112009

Pursuant to "21" above - Membership Recruitment
1, Publish monthly newsletter 12 newsletters
2, Complete monthly website updates 12 updates
3, Make 25 personal contacts to recruit businesses to join association (2 per month) 25

Pursuant to "2J" above - Membership Events 1. Schedule and promote WCA. membership workshops, meet & greets/ mixers, 2
meetings, and other events. ._
2. Recruit at least 12 new members 12
3. Profile at least 12 new business on the website 12

Pursuant to "2K" above - Facade Grants Est. Number of Clients
1, Maintain waiting list and process applications for facade improvement grants 2
resulting in at least 2 new facades for businesses,
2, Promote/facilitate uniform appearance of businesses within area through facade Ongoing
grant program.
3. Promote/facilitate adoption ofa beautification theme within area using facade Ongoing
grant program.
4. Work with businesses to find additional incentives and/or funding for facade Ongoing
improvements, business expansion and other business improvements,
5. Promote use of Entrepreneur Institute of Mid-Michigan CEIMM), formerly Ongoing
Lansing Community Microenterprise Loan Fund, and its business plan assistance,
6. Facilitate at least 3 business eXE,ans,ions 3
7. Survey 30 businesses to assess retention needs and facilitate retention services 30

Pursuant to "2L" above - ClAA Proposed date 1 number of
.. " ,.llnits. . , , '
1. Work with city's EDC and City Council to create ClAA and create and adopt ' Create CIAA
CIAA plan.
2. Adopt ClAA iO/31/2009
3. Write and adopt CIAA development plan & TIF plan. 5/3112010
.' ,
Pursuant to "2M'~ above - Market Business Improvement District Benefits
1. lnclude businesses in 3,d edition of the NWI business directory distributed to area 1 updated directory
'residents and businesses; solicit businesses to purchase advertisement in the
directory
2. Target advertising to .area neighborhoods Included articles on
businesses in at least 10
--- _. -- - --.- ._ -- - ---- Grand Happenings ._
Newsletters.
3, Counsel business owners on how to market their business 10 businesses
4. Increase sales revenue, Goal: 5% / year increase in
sales revenue amongst
Westside businesses.
5, Promote interest through festivals, tours and special events 2-events
6. Conduct clean sweep events Atleast 2 events
7. Create promotional campaign and literature At least 2 campaigns.
8. Enhance the area through traffic calming initiatives, beautification projects, and At least 2 projects per year.
new amenities.

Pursuant to "2N" above - Business Recruitment
1. Schedule at least 25 recruitment visits (about 2 per month) 25 visits 4. Section 5 of Part I (Compensatiori, Method of Payment and Reporting), Subsection AA.~ is modified to read as follows: AAs full and complete compensation for the Contractor's satisfactory performance under and completion of this Cont.ra c t , the City of Lansing hereby agrees to pay the Contractor a total amount of

THIRTY SEVEN THOUSAND AND FIVE HUNDRED ($37,500) DOLLARS, from the City of Lansing General Funds.~

5. Section 5 of Part I (Compensation, Method of Payment and Reporting), Subsection AB. ~ is modified to read as follows: AIt is expressly understood by and between the City of Lansing and the Contractor that in no event shall the total compensation and reirnb'qrsement 1 if any, to be paid the Contractor, exceed the maximum sum of THIRTY SEVEN THOUSAND AND FIVE HUNDRED ($37,500) DOLLARS, from the City of Lansing General Funds.~

6. The Total Contract Budget, Budget Justification and Sources of Funds pages of Part III are replaced by the budget pages entitled the same and attached hereto. ' The amended budget pages reflect an increase in funding from the City of Lansing of SEVENTEEN THOUSAND AND FIVE HUNDRED ($17,500) DOLLARS to the co st; category of APersonnel~ for said term.

7. All other terms and conditions of, this Contract, effective from July 1, 2009, through June 30, 2010, sha I I remain intact 'and unchanged.

CITY OF LANSING

BUDGET JUSTIFICATiON

CONTRACT PERIOD JULY 1; 2009 to JUNE 30, 2010

AGENCY NAME: NORTHWEST INITIATIVE

COST

DESCRIPTION OF ITEM VALUE

AMOUNT OR

CATEGORY

OF ITEM

PERSONNEL:

$ 17,500,00

FRINGE BENEFITS:

$

-0,00

OPERATING EXPENSES:

Rent/Utilities @ 12 Months

$ 20,000,00

EQUIPMENT

$

0,00

TOTAL:

$ 37~500.00

. , ,,'

PART III

CITY OF LANSING

. TOTAL CONTRACT BUDGET

CONTRACT PERIOD JULY 1J 2009 to JUNE 30,2010

. .

AGENCY NAME: NORTHWEST INITIATIVE

COST CATEGORY

(1) PERSONNEL

(2) FRINGE BENEFITS

(3) OPERATING EXPENSES (4) EQUIPMENT

TOTAL

ESTIMATED COST SHARE

$ 78,500.00

6,000.00

26,150.00

3,000.00

CITY OF LANSING SHARE

$17,500.00

0.00

20,000.00

0.00

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From:

To:

Date:

Subject:

Angela Bennett

Yerxa, Arnie

3/29/20109:17 AM Council/Internal Audit Budgets

I apologize! It hit me over the weekend that I didn't get you the information on the Council and Internal Audit budgets you requested.

They are proposed exactly as you submitted them to me with the following changes:

Council wages were reduced by $14,137 to $194,513, which is the 36-hour work week calculation for Council staff only (elected officials were excluded as mentioned in the budget book because of the EOCC). Staff wages still include the additional amount you had put in for increases -- we didn't alter that all. We only adjusted for Council staffs current hourly wage x 208 hours.

Fringe benefits were adjusted by $1,080 (7.65% of $14)37) for the 36-hour work week (again, only for Council staff, not elected officials) and $8,350 for final fringe adjustments for a final amount in 715000 of $173,470.

Other than the wage and fringe benefit accounts, no other changes were made from what you submitted. Again, the "events" line noted in the budget book include the same items they have in the past, Community promotions and Bea Cristy Awards Dinner (the same amounts as submitted).

Likewise, the adjustments to your budget were:

Internal Audit wages - same as above (kept in increase; reduced for 36-hour work week by $9,196 to $84,269) and fringe benefits by $703 for the 36-hour work week FICA adjustment and a final fringe adjustment of $1,577. Wages as proposed are $84,269 and fringes are $51,092; everything else remained the same as submitted.

As you know, City TV was proposed with a zero budget, as its operations are proposed to be moved/merged with the Office of Community Media.

Please let me know if you have any questions. Again, I'm sorry that I forgot to get that to you Friday.

Angela Bennett

Budget Manager

City of Lansing

(517) 483-4511 abennett@lansingmi.gov

CITY COUNCIL
FY 2010 % Change
FY 2009 Adopted FY 2010 FY 2011 FY10 Adopted
Actual Budget Projected Prol2osed FY11 Prol2osed
Department Appropriation

Personnel 514,133 492,574 487,574 469,983 -4.6%
Operating 94,943 111,700 104,270 111,700 0.0%
Events 9,695 10,000 13,000 10,000 0.0%
Capital 238 10,000 10,000 10,000 0.0%
Total 619,009 624,274 614,844 601,683 -3.6% Summary of Significant Changes:

These budgets reflect anticipated cost increases resulting from bargained salary increases and anticipated cost increases in health and pension benefits. Some reduction in the rate of increase is anticipated as a result of restructured administration of health benefits for Medicareeligible retirees as well as recent contract negotiations. Total costs are also reduced as a result of the proposed reduction in the normal work week for non-emergency City personnel from 40 hours to 36 hours, as well as equivalent cost reductions for emergency personnel. Salary reductions are not applied to elected officials, as their compensation is governed by the Elected Officers Compensation Committee.

33

INTERNAL AUDIT

. Mission and Role

The Internal Auditor is established by City Charter to review the City's financial compliance in accordance with Council policy. The Internal Auditor works under the direction of the City Council in reviewing external audits of financial Transactions and procedures. The internal Auditor also performs routine audits of other City business. The Internal Auditor is appointed by, and is responsible to , the City Council.

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INTERNAL AUDIT
FY 2010 % Change
FY 2009 Adopted JFY 2010 FY 2011 FYi 0 Adopted
Actual Budget Proiected Proposed FY11 Proposed
Department Appropriation

Personnel 139,851 141,220 137,870 136,161 ·3.6%
Operating 5,327 8,000 . 5,562 8,049 0.6%
Capital 1,500 1,500 1,500
Total 145,178 150,720 144,932 145,710 -3.3% Summary of Significant Changes:

These budgets reflect anticipated cost increases resulting from bargained salary increases and anticipated cost increases in health and pension benefits. Some reduction in the rate of increase is anticipated as a result of restructured administration of health benefits for Medicare-eligible retirees as well as recent contract negotiations. Total costs are also reduced as a result of the proposed reduction in the normal work week for non-emergency City personnel from 40 hours to 36 hours, as well as equivalent cost reductions for emergency personnel.

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OFFICE OF COMMUNITY MEDIA

Mission Statement

The Office of Community Media (OCM) administers the City's Public, Educational and Government (PEG) digital media network, including management of day-to-day operations of City TV and Lansing's Public Access Channel (PAC). The OCM is also responsible for developing and implementing strategies to build community capacity in the production of local origination programming; creating and managing partnerships that leverage the PEG network to foster educational and career opportunities for Lansing residents in digital media, broadcasting and related fields; and leading efforts to collaborate with regional partners toward the establishment of a regional Community Media Center.

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OFFICE OF COMMUNITY MEDIA

Personnel Operating Capital

Total

FY 2010 % Change
Adopted FY 2010 FY 2011 FYi 0 Adopted
Budget Projected Proposed FY11 Proposed
177,406 100.0%
10,000 100.0%
187,406 100.0% FY 2009 Actual Department Appropriation

Summary of Significant Changes:

In FY11 the OCM will continue to modernize and upgrade the facilities and equipment of City TV; re-establish local production and playback of the City's Public Access channel, including

. studio, post-production, educational and administrative facilities for local origination programming; work with the City's Telecommunications and Cable Board to develop and administer a competitive grant program that seeks to build community capacity in the production of digital media for local origination programming; and collaborate with regional partners toward the establishment of a regional Community Media Center.

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Mission Statement:

CITY CLERK

The Office of the City Clerk is responsible for the orderly conduct of all elections in the City of Lansing and for the processing of all voter registration records of its citizens. The City Clerk oversees the proper maintenance of records for the City, and prepares Agendas and printed Proceedings for the Lansing City Council. A number of business licenses are processed through the Office of the City Clerk, including the regulation of Peddlers & Transient Merchants, Vehicles for Hire, and Cabarets. The City Clerk serves as the recording secretary to the Board of Ethics, and administers all oaths required for municipal purposes by law.

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