City of Zeeland CITIZENS GUIDE 2016

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Stewart Wilkinson
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1 City of Zeeland CITIZENS GUIDE 2016

2 Citizens of the City of Zeeland: At the City of Zeeland, we believe that accountability and transparency are important in local government. In order to increase our accountability and transparency, we have produced this report to provide you, our citizens, with our annual financial and operating information in a clear and user-friendly format. We hope that this report is useful to gain perspective on the overall financial condition and operating structure of the City of Zeeland. The information provided in this report is derived primarily from the 2015 Comprehensive Annual Financial Report (CAFR). The information provided in the CAFR was independently audited by Kiekover, Scholma & Shumaker, P.C., and was prepared in accordance with generally accepted accounting principles (GAAP). The City received an unqualified ( clean ) opinion from our auditors which is the highest form of financial assurance that an organization can receive from their audit firm. We are proud that we have received the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association for the last 27 consecutive years. Users wanting more detailed information are encouraged to view the downloadable CAFR on the City s website at under the Quick Links section. We hope you find this information interesting and informative. We welcome any feedback and suggestions regarding the information provided in this report. Sincerely, Timothy R. Klunder City Manager Karen L. Doyle Assistant City Manager/Finance Director

3 What s Inside Your Representatives 4 Contact Information 4 City Administration 5 City Organization 5 Demographics 6 Our Strategic Plan 7 Where Your Tax Dollars Go 8 Taxable Values and Millage Rates 9 General Fund Revenue General Fund Expenses Revenue and Expenses Per Capita 14 General Fund Balance 15 Post Employment Liabilities 16 Long Term Debt Performance Indicators 19

4 YOUR REPRESENTATIVES Mayor Kevin Klynstra Mayor Pro Tem.....Sally Gruppen Council Person.....Jim Broersma Council Person....Richard VanDorp III Council Person...Glenn Kass Council Person Mary Beth Timmer Council Person Schyuler Wilson City Council meets the 1st and 3rd Monday of each month at 7:00 PM. City Hall City Council Chamber 21 South Elm Street Zeeland MI CONTACT INFORMATION Emergency 911 Police - Non Emergency Fire - Non Emergency City Hall Howard Miller Library Community Center Cemeteries Parks Streets Electric & Water Nights/Weekends Wastewater Utility Nights/Weekends

CITY ADMINISTRATION City Manager...Timothy Klunder Board of Public Works General Manager........Bill Cook Assistant City Manager/Finance Director/Treasurer...Karen Doyle City Clerk.

5 CITY ADMINISTRATION City Manager...Timothy Klunder Board of Public Works General Manager Bill Cook Assistant City Manager/Finance Director/Treasurer...Karen Doyle City Clerk......Karen Jipping City Assessor, Building and Zoning Official..Timothy Maday Police Chief William Olney Howard Miller Library & Community Service Building Director....Robert VandeVusse Fire Rescue Chief...William Gruppen City Attorney.....James Donkersloot CITY ORGRANIZATION

DEMOGRAPHICS Population: 2014: Estimate 5626 2010: Census 5505 2000: Census 5805 Age/Gender (2013) Male 2224 Female 3329 Median Age 40.

4% Housing: Total Housing 2,564 Occupied Housing 2,365 Owner Occupied: 1,772 Renter Occupied: 592 Housing with Minors: 670 Vacant Housing: 199 For Rent: 58

6 DEMOGRAPHICS Population: 2014: Estimate : Census : Census 5805 Age/Gender (2013) Male 2224 Female 3329 Median Age 40.1 Population under age % Population over age % Housing: Total Housing 2,564 Occupied Housing 2,365 Owner Occupied: 1,772 Renter Occupied: 592 Housing with Minors: 670 Vacant Housing: 199 For Rent: 58 For Sale: 72 Occasional Use Housing: 14 Household Income (2013) Zeeland $41,796 Michigan $48,411 Median Home Value (2013) Zeeland $125,300 Michigan $121,700 Geographical Information: Land Area: 3.0 Square Miles Altitude: 649 Feet Latitude: Longitude:

2015 Strategic Plan 2015 Strategic Action Plan Community Vision Strong Neighborhoods Healthy Economy Excellent City Services Vital Downtown Strength in Diversity Great Education Broad Goals to Pursue

7 2015 Strategic Plan 2015 Strategic Action Plan Community Vision Strong Neighborhoods Healthy Economy Excellent City Services Vital Downtown Strength in Diversity Great Education Broad Goals to Pursue Vision Financially Stable - Develop organizational wide service and financial strategies that will facilitate/sustain the city s lead role in quality service delivery; and Economic and Community Development Pursue private sector investment leading to sustained growth that provides profitable business opportunities for employers/entrepreneurs, local jobs for citizens and enhance the city s tax base; and implement community development initiatives that complement the city s effort to attract and retain economic development projects; and Policy and Services Make policy decisions that provide for maximum public investment, lead to decisions that are consistent with the initiatives found within the City s Strategic Action Plan; and provide services that are productive, efficient, and cost-effective; and Culture, Parks, and Recreation-Expand and/or enhance activities and places that enrich the experience of living in and visiting the City of Zeeland; and Infrastructure-Maintain and enhance the City s infrastructure to assure optimal quality of life for citizens, visitors, and employers. Organizational Development - Continual assessment of the organizational components necessary to retain and recruit high quality personnel in order to deliver the quality programs and services expected from a high functioning organization Wrap-up 1. Consumers Energy Tax Appeal (Financially Stable) 2. Start Cemetery Expansion at Felch Street (Infrastructure) 3. Start Clean Water Plan Expansion Project (Infrastructure) 4. Determine PPT loss and plan to mitigate loss (Fin. Sust.) 5. Add splash pad green space/amenities (Cult, Parks, & Rec) 6. Expand library and renovate HMCC (Cult, Parks & Rec) 7. Upgrade downtown dumpsters (Infrastructure) 8. Complete city s website (Policy and Services) 9. City-Wide Communication (Policy and Services) Action Steps Invest Now 1. Expand the Alcohol Sales District Downtown (Econ/Com Dev) 2. Complete gaps in sidewalks/bikepaths (Infrastructure) 3. Enhanced pedestrian crossing at BL-196 (Infrastructure) 4. Old Sligh Building Redevelopment (Econ/Com Development) 5. Work with MDOT on East Entrance Redesign (Infrastructure) 6. Compensation and benefits study (Org. Development) 7. Succession plan for departments (Org. Development) 8. Develop subarea growth plan ZCS/Faith/City of a Hill (ECD) 9. Downtown Wireless System (Infrastructure) 10. Complete streets implementation (Infrastructure) 11. Review 60/40 Alochol/Food Enforcement Procedure (Policy) 12. City s Alchol Policy on Public Property (Policy/Services) 13. Max Transit Authority (Policy and Services) 14. Industrial/Comm. Recruitment, Retention, Expansion (ECD) Someday 1. Refuse single hauler franchise (Policy/Services) 2. Develop a local hotel (Econ/Com Development) 3. Snow melt system at the library (Infrastructure) 4. Develop green infrastructure/storm water plan (Infr) 5. Improve west y gateway (Infrastructure) 6. Develop Lawrence Park Pavilion for 4 season use (CPR) 7. Parking lots/park by Old Sligh Building and Cityside Middle School (Econ and Community Development) 8. Dog Park (Culture, Parks and Recreation) 9. Develop East Side Park around Cityside Athletic Fields/ZPS Bus Garage (Culture, Parks, Recreation) Completed Actions = WINS The 2015 Strategic Action Plan for the City of Zeeland outlines our broad goals to pursue the overall vision of a vital downtown, strong neighborhoods, healthy economy, excellent city services, strength in diversity, and great education. The above graphic highlights action steps that we will take to pursue our broad goals and thus our overall vision. It should be noted that the action steps are listed as 2015 strategic goals, and the City Council recognizes that these action steps are visionary in nature and some of them may require more than a one year timeframe to complete.

8 WHERE DO YOUR TAX DOLLARS GO? In addition to City Operating & Library Debt taxes, the City collects taxes for Zeeland Public Schools, Ottawa Intermediate School District, State Education, Ottawa County, and the West Michigan Airport Authority. ALLOCATION OF HOMESTEAD TAX: Homestead For every homestead tax dollar collected, only 15 cents remains with the City. Education receives: 79 cents, Ottawa County: 6 cents, Howard Miller Library Debt: 1/2 cent, and the West Michigan Regional Airport Authority: 1/10 cent. ALLOCATION OF NON-HOMESTEAD TAX: Non-Homestead For every non-homestead tax dollar collected, only 20 cents remains with the City. Education receives: 72 cents, Ottawa County: 8 cents, Howard Miller Library Debt: 3/5 cent, and the West Michigan Regional Airport Authority: 1/5 cent.

9 Where do our tax dollars come from and what are our tax rates? Taxable Values (As of March, 2015 Board of Review) Agriculture 51,515 Commercial 35,360,438 Industrial 544,248,860 Residential 102,592,981 Utility 2,037, ,291,494 Agriculture Commercial Industrial Residential Utility City Operating Airport Authority School Operating School Debt State Education Intermediate School District Homestead Millage Rates City Operating Airport Authority 0.1 School Operating 1.4 School Debt 6.63 State Education 6 Intermediate School District Ottawa County Non-Homestead Millage Rates City Operating Airport Authority 0.1 School Operating 19.4 School Debt 6.63 State Education 6 Intermediate School District Ottawa County City Operating Airport Authority School Operating School Debt State Education Intermediate School District

GENERAL FUND The General Fund represents the main operating activities for the city and include services such as police, fire, assessing, elections, parks and recreation, cemetery operations,

10 GENERAL FUND The General Fund represents the main operating activities for the city and include services such as police, fire, assessing, elections, parks and recreation, cemetery operations, parking, sidewalks and bikepaths, zoning, economic development, planning, and administration. General Fund Revenues Just like any other for-profit business, governments need income (revenue) to supply the services that are expected by its citizens, but unlike for-profit businesses, we do not discontinue services if they fail to generate to cover expenses. An example of this is the care for sidewalks, while the sidewalks do not generate any revenue it is expected that they will be maintained so they can be used by our citizens. While most of our revenue comes from taxes, other revenue sources include state shared revenue, licenses and permits, charges for services, and interest income. The graphic below shows a breakdown our overall trend of our tax collections for the last ten years. As shown on the graph above, tax revenues have continued to increase with an increase of 8.85% increase in overall tax revenue from This increase is a result of increasing property values and continued reinvestment into the Zeeland Community.

11 General Fund Revenues Revenues 2014 Data 2015 Data Taxes $5,168,240 $5,625,796 Licenses & Permits $122,086 $147,211 From Federal Govt. $0 $342 From State Govt. $569,527 $500,646 Local Contributions $30,000 $30,000 Charges For Services $66,613 $77,974 Fines & Forfeits $56,061 $43,035 Interest & Rents $109,676 $91,793 Other Revenues $45,982 $39,096 Total Revenues $6,168,185 $6,565,893 Other Financing Sources $577,925 $620,970 These graphics show the dollar breakdown of the revenues received. While our biggest revenue increase came in the form of increased tax revenue (8.85%), we saw modest increases in licenses and permits (20.58%), and charges for services (17.06%) which include police services and grave openings. Our biggest decreases came in the form of State Revenue including grants and revenue sharing ( %), Fines & Forfeits ( %), and Interest and Rents (-16.31%). Even though we saw some decreases in 2015, our overall revenues increase by 6.45%. One note regrading the graphics below, other financing sources represents money transferred in from another fund, which is not new revenue to the City of Zeeland, but a transfer between departments.

12 General Fund Expenditures Much like a for-profit business, the City of Zeeland incurs expenses to provide the services that are expected by its citizens. These expenses include police and fire, public works projects, infrastructure improvements, debt repayment, parks and recreation activity, community and economic development, and overall government administration. The graphs below show our overall spending trends in the area of general government administration, police and fire, and public works for the past ten years.

13 General Fund Expenses The table and graph shows the expenditures in the general fund by category of spending. Overall spending increased by 3.38% with the biggest increases being in the recreation and culture department as a result of an investment in the downtown splashpad. As with the revenues, other financing uses represent a transfer into another fund with the biggest difference in 2015 being a $1,165, transfer out into the legal contingency fund for anticipated legal costs associated with defending our current assessment of the Consumers Energy Power Generating Facility. Expenditures 2014 Data 2015 Data General Government $1,237,446 $1,304,288 Police & Fire $1,853,113 $1,850,778 Other Public Safety $201,345 $242,413 Other Public Works $581,788 $455,441 Community & Economic Dev. $148,729 $158,280 Recreation & Culture $439,900 $609,074 Debt Service $152,636 $154,498 Unallocated Fringes & Insurance $15,265 $11,734 Total Expenditures $4,630,222 $4,786,506 Other Financing Uses $2,180,000 $3,065,000

14 General Fund Revenues and Expenditures Per Capita

General Fund Financial Position The City of Zeeland prides itself on being fiscally responsible and as is shown on these graphs, the fund balance has shown modest gain in most years meaning we spend

15 General Fund Financial Position The City of Zeeland prides itself on being fiscally responsible and as is shown on these graphs, the fund balance has shown modest gain in most years meaning we spend less than we take in. The exceptions being in 2007, 2011, and 2014 where we had large infrastructure projects, and in 2015 where we startied setting aside money for potential legal bills. In 2007 we built our street maintenance facility and spent more than $1.7 million in street, sidewalk, bike-path projects. In 2011 and 2014 we invested another $1.8 million and $2.38 million dollars in infrastructure improvement projects respectively. This past year we invested over $1.0 million dollars each in infrastructure and legal contingency, continuing our history of taking care of today s needs and saving for tomorrow s.

16 Long Term Retirement Obligations The City contributes a minimum of 100% of our annual required contribution to our Employee Pension & Other Post-Employment Benefits (OPEB) Funds. In 2001 the pension fund was 99% funded, but due to the great recession, the weakening of the stock market, and other financial realties, we are now underfunded for our long-term employee benefit obligations. In the fiscal year 2013, the City made a one-time $900, contribution over and above our required amount to bring the fund closer to full-funding. As the economy continues to improve and the stock market strengthens, this underfunded status will move closer to full funding. Currently the City has 10 active members, 10 inactive vested members, and 28 retirees and beneficiaries participating in this retirement plan. Pensions 2014 Data 2015 Data Assets $7,748,863 $7,887,447 Actuarial Liability $8,335,832 $9,001,458 Overfunded (Unfunded) ($586,969) ($1,114,011) Percent Funded % % Other Post Employee Benefits Assets $1,010,513 $1,891,798 Actuarial Liability $1,929,336 $1,892,796 Overfunded (Unfunded) ($918,823) ($998) Percent Funded % % Sum Of All Pensions & OPEB Assets $8,759,376 $9,779,245 Actuarial Liability $10,265,168 $10,894,254 Overfunded (Unfunded) ($1,505,792) ($1,115,009) Percent Funded % %

17 Governmental Activities Debt Obligations Street Maintenance Facility. In February of 2006 the City issued $2,100,000 in Limited Tax General Obligation Capital Improvement Bonds (2006 Capital Improvement) to acquire land, construct, furnish and equip a street maintenance facility. Millage was not increased to finance the debt, rather, debt payments are made within the existing general operating millage. City Hall. In 1998 the City issued $1,400,000 in Building Authority Bonds to finance the renovation of City Hall. The debt was refinanced in February of 2012 (2012 Building Authority Refunding) for a substantial interest savings. To pay the obligation, funds will be transferred from the General Fund operating budget Capital Improvement 2012 Building Authority Fiscal Principal Interest Total Principal Interest Total ,000 54, , ,000 7, , ,000 50, , ,000 5, , ,000 46, , ,000 3, , ,000 41, , ,000 1, , TOTAL

18 Business-Type Activities Debt Obligations Business-type debt includes debt issued by the Electric, Water, and Clean Water utilities to fund system improvements. The debt is paid entirely from the utilities user charges. Original FY16 Issue Balance Remaining Revenue Bonds July, 2005 Water Refunding 3,515, ,000 January, 2011 Water Refunding 2,350,000 1,540,000 Limited Tax General Obligation Bonds August, 2009 Capital Improvement Bonds (Clean Water) 2,000,000 1,650,000 September, 2015 Sewer Improvement Bonds, Clean Water Plant Upgrades, State Revolving Fund 1,465,000 1,165,000 4,955,000 Fiscal 2005 Water Bonds 2011 Water Bonds Clean Water Plant Clean Water Plant Year Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total ,000 12, , ,000 64, ,838 80,000 73, ,438-14,563 14, ,000 54, ,145 80,000 70, ,898-29,125 29, ,000 42, ,998 85,000 68, ,028 45,000 29,125 74, ,000 31, ,395 90,000 64, ,788 45,000 28,000 73, ,000 19, ,224 90,000 61, ,278 50,000 26,875 76, ,000 6, ,484 95,000 57, ,506 50,000 25,625 75, ,000 53, ,385 50,000 24,375 74, ,000 48, ,899 50,000 23,125 73, ,000 44, ,033 55,000 21,875 76, ,000 38, ,683 55,000 20,500 75, ,000 32, ,894 55,000 19,125 74, ,000 26, ,513 55,000 17,750 72, ,000 19, ,425 60,000 16,375 76, ,000 11, ,944 60,000 14,875 74, ,000 4, ,069 60,000 13,375 73, ,000 11,875 76, ,000 10,250 75, ,000 8,625 73, ,000 7,000 72, ,000 5,375 75, ,000 3,625 73, ,000 1,675 76, ,000 12, ,000 1,540, ,082 1,759,082 1,650, ,776 2,325,776 1,165, ,113 1,538,113

Our Performance Indicators Performance Notes 1. Annual General Fund Expenditures Per Capita - The amount of increase is a result of a $1,165,000.

19 Our Performance Indicators Performance Notes 1. Annual General Fund Expenditures Per Capita - The amount of increase is a result of a $1,165, transfer from the General Fund to Legal Contingency Fund for defending our assessed value of the Consumers Energy Power Generating Facility. If this transfer had not taken place, our general fund expenditures per capita would have been $1,204.00a decrease from the previous year. 2. Fund Balance as a Percent of Annual General Fund Expenditures - The percentage decrease again is a result of the transfer from the General Fund to the Legal Contingency Fund. If this transfer had not taken place, our Fund Balance as a Percent of Annual General Fund Expenditures would be 61.42%. 3. Traffic Injuries or Fatalities and Average Age of Street Infrastructure - The large differences between 2015 and 2014 is a result of changes in reporting procedures. This large change should only affect 2015 reporting statistics. 4. Unfunded Post-Employment Benefits (OPEB) as a Percentage of General Revenue - The changes in this percentage is a result of the latest report being published as of June 30, 2015 as opposed to 2012 which shows a large increase in the value of the assets in the OPEB Fund. 5. Number of Services Delivered Through Cooperative Venture - This change is due to new initiatives to use Ottawa County GIS for Cemetery Mapping and Management, the Fire/Rescue Department becoming a member of the Mutual Aid Box Alarm System, joining with the Zeeland Artist Collective representing artists in the Zeeland Community, and an Internships with Hope College for College credit.

Regular Meeting Common Council September 19, 2016

Regular Meeting Common Council September 19, 2016 The regular meeting of the Common Council was held in City Hall Council Chambers on Monday, September 19, 2016. Mayor Klynstra called the meeting to order