HomeMy WebLinkAbout2012 - Department of Finance - Comprehensive Annual Financial Report City of Lansing,
Michigan
cHI � �
Year Ended Comprehensive
June 30, 2012 V Annual Financial
Report
. •
Prepared by: Department of Finance
Interim Finance Director
Angela Bennett
Accounting Manager
Randy Endsley
CITY OF LANSING, MICHIGAN
Table of Contents
Page
INTRODUCTORY SECTION 1
Elected and Appointed Officers 2
Letter of Transmittal 3
Table of Organization 7
GFOA Certificate of Achievement 8
FINANCIAL SECTION 9
Independent Auditors' Report 11
Management's Discussion and Analysis 13
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Assets 28
Statement of Activities 29
Fund Financial Statements:
Balance Sheet - Governmental Funds 34
Reconciliation of Fund Balances of Governmental Funds
to Net Assets of Governmental Activities 35
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 36
Reconciliation of Net Changes in Fund Balances of Governmental Funds
to Change in Net Assets of Governmental Activities 37
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
General Fund 38
State and Federal Programs Special Revenue Fund 40
Statement of Net Assets - Proprietary Funds 42
Statement of Revenues, Expenses and Changes in Fund
Net Assets - Proprietary Funds 43
Statement of Cash Flows - Proprietary Funds 44
Statement of Fiduciary Net Assets - Fiduciary Funds 48
Statement of Changes in Fiduciary Net Assets - Pension and
Other Postemployment Benefits Trust Funds 49
Combining Statement of Net Assets - Discretely Presented Component Units 54
Combining Statement of Activities - Discretely Presented Component Units 55
Notes to Financial Statements 57
CITY OF LANSING, MICHIGAN
Table of Contents
Page
Required Supplementary Information
Schedule of Funding Progress - Employees' Retirement System 101
Schedule of Employer Contributions - Employees' Retirement System 101
Schedule of Funding Progress - Police and Fire Retirement System 102
Schedule of Employer Contributions - Police and Fire Retirement System 102
Schedule of Funding Progress - Other Postemployment Benefit Plans 103
Schedule of Employer Contributions - Other Postemployment Benefit Plans 103
Combining and Individual Fund Financial Statements and Schedules 104
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds 105
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Governmental Funds 106
Combining Balance Sheet - Nonmajor Special Revenue Funds 109
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Special Revenue Funds 111
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - Nonmajor Special Revenue Funds 113
Combining Balance Sheet - Nonmajor Debt Service Funds 121
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Debt Service Funds 122
Combining Balance Sheet - Nonmajor Capital Projects Funds 125
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Capital Projects Funds 127
Combining Balance Sheet - Nonmajor Permanent Funds 131
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Permanent Funds 132
Nonmajor Enterprise Funds:
Combining Statement of Net Assets - Nonmajor Enterprise Funds 135
Combining Statement of Revenues, Expenses and Changes in Fund
Net Assets - Nonmajor Enterprise Funds 136
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 137
Internal Service Funds:
Combining Statement of Net Assets - Internal Service Funds 141
Combining Statement of Revenues, Expenses and Changes in Fund
Net Assets - Internal Service Funds 142
Combining Statement of Cash Flows - Internal Service Funds 143
CITY OF LANSING, MICHIGAN
Table of Contents
Page
Agency Funds:
Combining Statement of Fiduciary Assets and Liabilities - Agency Funds 147
Combining Statement of Changes in Assets and Liabilities - Agency Funds 148
STATISTICAL SECTION (UNAUDITED) 149
TABLE
1 Net Assets by Component 152
2 Change in Net Assets 153
3 Fund Balances, Governmental Funds 155
4 Changes in Fund Balances, Governmental Funds 156
5 Assessed and Estimated Actual Value of Taxable Property 157
6 Direct and Overlapping Property Tax Rates 158
7 Profile of Ten Largest Ad Valorem Taxpayers 159
8 Property Tax Levies and Collections 160
9 Ratios of Outstanding Debt by Type 161
10 Ratios of General Bonded Debt Outstanding 162
11 Direct and Overlapping Governmental Activities Debt 163
12 Legal Debt Margin Information 164
13 Pledged-Revenue Coverage 165
14 Demographic and Economic Statistics 166
15 Principal Employers 167
16 Full-Time Equivalent City Governmental Employees by Function/Program 168
17 Operating Indicators by Function/Program 169
18 Capital Asset Statistics by Function/Program 170
INTRODUCTORY SECTION
1
CITY OF LANSING, MICHIGAN
ELECTED AND APPOINTED OFFICERS
For the Year Ended June 30, 2012
MAYOR
Virg Bernero
CLERK
Chris Swope
DISTRICT COURT JUDGES
Frank J. Deluca
Patrick F. Cherry
Charles F. Filice
Hugh B. Clarke, Jr.
Louise Alderson
CITY COUNCIL
AT LARGE BY WARDS
Brian Jeffries Jody Washington - 1st Ward
Kathie Dunbar Tina Houghton - 2nd Ward
Derrick Quinney A'Lynne Robinson - 3rd Ward
Carol Wood Jessica Yorko - 4th Ward
OFFICERS
William Fowler City Assessor
Brigham Smith City Attorney
Antonia Kraus City Treasurer
Chad Gamble Chief Operating Officer
Angela Bennett Interim Finance Director
Randy Talifarro Fire Chief
Joan Jackson Johnson Human Relations Et Community Services,
Director of
Arnie Yerxa Internal Auditor
Brett Kaschinske Parks Et Recreation, Director of
Terri Taylor Human Resources, Director of
Robert Johnson Planning Et Neighborhood Development,
Director of
Teresa Szymnaski Police Chief
Chad Gamble Public Service, Director of
2
FINANCE DEPARTMENT
124 W. Michigan Ave., 0 'Floor
Lansing: Michigan 48933
(517)4834500
H I ®
January 18, 2013
Council President Brian Jeffries
and Council Members
10th Floor City Hall
Lansing, Michigan 48933-1694
Dear President Jeffries and Council Members:
We are pleased to submit the comprehensive annual financial report of the City of Lansing, Michigan for the
fiscal year ended June 30, 2012.
The City assumes full responsibility for both the accuracy of the data and the completeness and fairness of
the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed data are
accurate in all material respects and are reported in a manner designed to present fairly the financial
position and results of operations government wide and of the various funds of the City. All disclosures
necessary to enable the reader to gain an understanding of the City's financial activities have been included.
The City's fiscal year 2011/2012 financial statements have been audited by Rehmann Robson, an independent
firm of licensed, certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements for the City of Lansing for the fiscal year-ended June 30, 2012, are
free of material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures contained in the financial statements; assessing the accounting
principles used; and evaluating the overall financial statement presentation. The independent audit
concluded with the rendering of an unqualified opinion on the statements, meaning the financial statements
present, fairly and accurately in all material respects, the financial position of the City in conformity with
Generally Accepted Accounting Principles ("GAAP"). The independent auditors report is presented as the
first component of the financial section of this report.
This letter of transmittal is designed to complement the Management Discussion and Analysis (MDEtA) and
should be read in conjunction with it. The Management Discussion and Analysis can be found immediately
following the Independent Auditors' Report.
Profile of the City of Lansing
Serving as Michigan's capital since 1848, the City of Lansing was incorporated in 1859 and operates under
provisions of Public Act 279 of 1909, as amended (the "Home Rule City Act"). The City incorporates 34.7
square miles and is located in the lower middle of Michigan's Lower Peninsula and operates under a strong
mayor form of government established by 1978 Charter revision.
3
Lansing is a mature core city with a population of 114,297, according to the 2010 census, and offers a full
range of services. During the fiscal year ended June 30, 2012, the City operated police headquarters and two
precincts with over 180 sworn police officers; six fire stations with a fire protection force of over 170; over
300 miles of sanitary sewers, 230 miles of storm sewers, and 180 miles of combined sewers; over 400 miles of
roads; 113 parks; a District Court; and support for human services and cultural events. The City's main
sources of revenue were property taxes, income taxes, State revenue sharing, Federal entitlement grants,
and charges for services, including utility billings.
Reporting Entity
The financial reporting entity (the City) includes all of the funds of the primary government (i.e., the City as
legally defined), as well as its blended component units. Blended component units, although legally separate
entities, are, in substance, part of the primary government's operations and are included as part of the
primary government. The Lansing Building Authority is a blended component unit. Discretely presented
component units are reported in a separate column in the combined financial statements to emphasize that
they are legally separate from the primary government and to differentiate their financial position, results of
operations and cash flows from those of the primary government. The Lansing Entertainment It Public
Facilities Authority, Tax Increment Finance Authority, Brownfield Redevelopment Authority and the Smart
Zone are reported as a discretely presented component units.
Financial Management and Control
Management of the City of Lansing is responsible for establishing and maintaining internal controls designed
to ensure that the assets of the government are protected from loss, theft, or misuse and to assure that
adequate accounting data is compiled to allow for the accurate presentation of financial statements in
conformity with generally accepted accounting principles.
To provide a reasonable basis for making these presentations, management has established a comprehensive
system of internal controls designed to reasonably ensure that assets of the City are protected from loss,
theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of
these financial statements in conformity with generally accepted accounting principles. Such controls
include appropriate policies and procedures, ongoing risk assessment, and monitoring and review processes
which are communicated throughout City operations. Because the cost of internal controls generally should
not outweigh their benefits, the City's framework of internal controls has been designed to provide
reasonable, rather than absolute, assurance that these objectives are met.
Because the City is a recipient of federal grant dollars, the independent audit of the financial statements of
the City of Lansing was part of a broader, federally-mandated "single audit" in conformity with the
provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-profit Organizations. The standards governing the single
audit require the independent auditor to report not only on the fair presentation of the financial statements,
but also on the audited government's internal controls and compliance with legal requirements involving the
administration of the federal awards. These reports are available in the City's separately-issued Single Audit
Act Compliance.
Budgeting Controls
The annual budget serves as the foundation for the City's financial planning, policy-making, and control. The
City Charter requires that the Mayor submit to the City Council a proposed budget by the fourth Monday in
March. The City Council must, by charter, adopt the budget for the ensuing fiscal year by the third Monday
in May. The budget is adopted at the activity level within each department.
4
The City also maintains an encumbrance accounting system, whereby purchase orders amounts are deducted
from the available budget, as one technique of accomplishing budgetary control. Encumbered amounts lapse
at year end and require Council approval to be carried forward to the ensuing fiscal year for amounts greater
than $5,000 or greater than eight months old.
Risk Management
The City carries a $1 million underlying general liability policy and a $15 million umbrella policy, as well as
all-risk replacement cost insurance on all buildings owned by the City. The City maintains self-funded
insurance for liability associated with workers compensation: up to $750,000 per occurrence is self-funded,
and the City maintains commercial excess insurance coverage of up to $2 million per occurrence.
Economic Condition and Outlook
Michigan's economy continues to show signs of rebounding from the "Great Recession." Lenders and
businesses are cautiously starting to invest in what are considered safe investments, the City continues to
move along and is poised to recover as the national and world economies do. Lansing continues to see
strengthening of its job market and has experienced one of the highest growth rates in the state. Aggressive
economic development activities have resulted in a number of economic projects that have happened in 2012
and several more are slated to break ground in 2013:
The downtown Knapps department store building rehabilitation project, announced in April, has received
its final approvals and is now underway. This $36 million project will create over 100 jobs as well as fully
redeveloping an entire city block.
Emergent Biosolutions, an international research and development and manufacturing firm of the anthrax
vaccine, located in the City of Lansing, announced plans to build a $108 million campus expansion of its
facilities. The project is currently nearing completion. This allowed them to receive $220 million in new
funding from the federal government to expand their development of vaccines for pandemic virus beyond
just anthrax.
In partnership with the City, the Sault Ste. Marie Tribe of Chippewa Indians announced plans this past
January for a 125,000-squre-foot Kewadin tribal casino. To be located next to the City's convention
center, the casino is planned to have 3,000 slot machines and 48 gambling tables and is projected to
generate 1,500 jobs. Revenue sharing from the operations of the casino are planned to fund four-year
college scholarships for Lansing School District graduates, modeled after the Kalamazoo Promise. The
development has met some legal challenges, but is progressing.
Pratt Et Whitney added several million dollars in equipment to its City of Lansing site and also added a
minimum of 70 new jobs to the City.
The Capital Regional International Airport completed a 55,000 square foot export/import manufacturing
facility in the City of Lansing, which promises to attract several new manufacturers including one from
Italy which would create an initial 80 jobs (yet announced).
Blue Cross/Blue Shield moved its 260 corporate employees from its Delta Township location to a
downtown Lansing location in April.
The publicly-owned utility Lansing Board of Water and Light will complete in 2013 its construction of a
$180 million natural gas plant in Lansing's REO Town, while moving its corporate headquarters and 180
employees with this new plant, sparking a whole revitalization effort within this area of Lansing.
Lansing is an environment of high-growth possibilities and a reasonably safe return on investment. Lansing is
poised to benefit from the new generation of young people, entrepreneurs and new economy businesses who
are now demanding an urban environment for living and working. Although tough times remain, and some
people and business are hurting, the City of Lansing is still poised for a remarkable, sustained and historic
period of economic diversity and growth.
5
Acknowledging the need for comprehensive, integrated economic development efforts on a regional basis,
the City will be contracting with the Lansing Economic Area Partnership (LEAP) beginning in fiscal year 2013.
It is expected that this move will strengthen economic development efforts and opportunities, both for the
City and the region as a whole, while decreasing economic development costs to the City.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended June
30, 2011. This was the 34th consecutive year that the City has received this prestigious award. In order to be
awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized
comprehensive annual financial report. This report satisfied both generally accepted accounting principles
and applicable legal requirements.
The 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.
Preparation of this comprehensive annual financial report was made possible by the dedicated service of the
entire staff of the Finance Department, as well as support by other departments. All those who contributed
to this document, especially Accounting Manager Randy Endsley, have our sincere appreciation for their
contributions made in the preparation of this report and in the financial management of the City. The 34th
consecutive GFOA award, recognizing their efforts, is well deserved indeed.
Sincerely,
Virg Bernero
Mayor
4 ���
Angela Bennett
Interim Finance Director
6
CITY OF LANSING, MICHIGAN
Table of Organization
Citizens of Lansing
City Clt�lc City Council Mayor 54-A District Court
Iatanal City Art Office of
Audit Office Community Media
Police Fitt Plamiiug& Economic Hunan Relations
Neighborhood Development Smicc Recreation and Comuttity
Development Services
Patrol suppression Framing Economic Dev.Corp. RoadvSidexalb PailsDes*Frogams Grant Writing Amst
Crime investigation Prevention Zoning LEPFA SeversMeatment Recreation Progams Human Sen.Grants
Connurtin•Policing Emergency Mgmt Code Compliance Pr—pal Shopping Dist. TrashMyling Comaamin•Centers Police Internal Los•.
Detention Housing Neighborhoods TIFA Grounds Maintenance Cemeteries
Bu 3d ag SafeR Fngiaoesing Golf
Pmhq
Finance Human Resources
Treasury income Tar Recruitment
Assessing Training
AccountingBudger'Payroll Labor Relations
R"hasiag PayzolLBenefio
Information Technology
Propefi''v=zement S Fleet
Retirement Ser�-ices
7
CITY OF LANSING, MICHIGAN
GFOA Certificate of Achievement
Certificate of
Achievement
for Excellence
in Financial
Deporting
Presented to
City of Lansing
Michigan
Far its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
Jane 30,2011
A Certificate of Achievement for Excellence vi Financial
Reporting is presented by[he Government Finance officers
Assoriation of the United States and Canada to
governmentu3b and public employee retirement
systems wbox compr6mgivc aomusl financial
reports(CAM)athim*ahighcst
standards in v%w=eM wwun ang
and financial reporting,
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8
FINANCIAL SECTION
9
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10
Rehmann PO B East Paris Ave.,SE
PO Box 6547
Grand Rapids,MI 49516
Ph:616.975.4100
Fx:616.975.4400
INDEPENDENT AUDITORS' REPORT
January 18, 2013
Honorable Mayor and
Members of the City Council
City of Lansing, Michigan
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Lansing, Michigan (the "City"), as of and for the
year ended June 30, 2012, which collectively comprise the City's basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the City's management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
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, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information
of the City of Lansing, Michigan as of June 30, 2012, and the respective changes in financial position
and cash flows, where applicable, thereof and the respective budgetary comparison for the General
Fund and each major special revenue fund for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued, under separate cover, our
report dated January 18, 2013, on our consideration of the City of Lansing, Michigan's internal control
over financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, 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 the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
11
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and the schedules of funding progress and employer
contributions for the pension and other postemployment benefit plans, as noted 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual fund financial
statements and schedules 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
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 financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated in all material respects in relation to the financial statements as a
whole.
The introductory section and statistical tables are presented for purposes of additional analysis and are
not a required part of the basic financial statements. Such information 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 or provide any assurance on it.
12
MANAGEMENT'S DISCUSSION AND ANALYSIS
13
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
The management of the City of Lansing, Michigan ("the City") provides this narrative overview and analysis of the
financial activities of the City for the fiscal year ended June 30, 2012 for the benefit of the readers of these financial
statements. This management's discussion and analysis ("MD&A") is intended to assist the reader in focusing on
significant financial issues and provide an overview of the City's financial activity. The City encourages the readers
to consider the following information here in conjunction with the financial statements taken as a whole, which
follow this section.
Financial Highlights
Total government-wide assets of the City exceeded its liabilities at the close of the fiscal year by $398.0 million
(reported as net assets), a decrease of $29.9 million from fiscal year 2010/2011. Component units of the City
reported a deficit of net assets of $33.6 million, an improvement of $604,290 from the previous year. This
component unit deficit is planned to be covered by future tax revenue captures in the TIFA, Smart Zone, and
Brownfield component units.
As of the close of the 2011/2012 fiscal year, the City's governmental funds reported combined ending fund
balances of$17.4 million. Of this, $8.5 million is legally restricted and/or unavailable to spend (i.e. amounts tied
up in inventories), and $4.2 million is committed for designated projects, leaving $4.7 million
unrestricted/uncommitted.
At the end of the fiscal year, unassigned fund balance for the General Fund, (including the amount internally
identified as a Budget Stabilization Fund), was $5.2 million, an increase of $258,341 from FY 2010/11. Please see
the "General Fund and Budgetary Highlights" section of this Management Discussion and Analysis for further
detail.
The business-type activities reported net assets at year-end of $254.2 million, an increase of $2.8 million during
the year which is the result of the result of the receipt of federal stimulus dollars for the City's Combined Sewer
Overflow (CSO) and tertiary building projects.
The City's total bonded and loaned debt was $257.7 million at June 30, 2012, a decrease of $15.0 million (or
5.5%), which represents the net difference between new issuances and payments. During the year, the City
issued $5.7 million in State revolving loan fund debt for the City's Wet Weather (formerly Combined Sewer
Overflow/Sanitary Sewer Overflow) environmental program in the Sewage Disposal System (proprietary) fund.
More detailed information regarding these activities and funds can be found in footnote 10, Long Term Debt.
Overview of the Financial Statements
This MDEtA is an introduction to the City's basic financial statements, which comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other required supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements. These statements include all non-fiduciary assets and liabilities, but
exclude assets and liabilities related to pensions. The Statement of Net Assets and the Statement of Activities are two
financial statements that report information about the City, as a whole, and about its activities, which provide
measurements of long term trends that should help answer this question: Is the City, as a whole, better off or worse
off as a result of this year's activities? Unlike the governmental funds, the current year's revenues and expenses are
taken into account regardless of when cash is received or paid, known as "full accrual accounting".
The Statement of Net Assets presents all of the City's assets and liabilities, with the difference between the two
reported as "net assets". Over time, increases and decreases in net assets are an indicator of whether the City's long
term financial position is improving or deteriorating.
14
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
The Statement of Activities presents information showing how the City's net assets changed during the most recent
fiscal year. All changes in net assets are reported as soon as the underlying events giving rise to the change occur,
regardless of the timing of related cash flows. Therefore, revenues and expenses are reported in these statements for
some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
The Statement of Net Assets and the Statement of Activities report three activities, as follows:
Governmental Activities - Most of the City's basic services are reported under this category. Property taxes,
income taxes, and intergovernmental revenues generally fund these services. The Council (legislative branch),
the District Court (judicial branch), and general operations of the executive branch departments, such as police,
fire, parks, public works, and staff departments fall within the governmental activities.
Business-type Activities - The City charges fees to customers to help cover all or most of the costs of certain
services it provides. Sewage collection and treatment and commercial area parking are examples of business-type
activities.
Discretely Presented Component Units - Component units are legally separate organizations for which the
elected officials of the primary government are financially accountable. The City has four such discretely
presented units; the Lansing Entertainment and Public Facilities Authority, the Tax Increment Finance Authority,
the Brownfield Redevelopment Authority, and the SmartZone.
These financial statements include two schedules that reconcile the amounts reported on the governmental fund
financial statements (modified accrual accounting) with governmental activities (full accrual accounting) on the
appropriate government-wide statements. The following summarizes the impact of transitioning from modified
accrual to full accrual accounting:
Capital assets used in governmental activities are not reported on governmental fund statements.
Certain revenues that are earned, but not available for use within the reporting period, are reported as revenues
for governmental activities, but are reported as deferred revenue on the governmental fund statements.
Other long-term assets that are not available to pay for current period expenditures are deferred in
governmental fund statements, but not deferred on the government-wide statements.
Internal service funds are reported as governmental activities, but reported as proprietary funds in the fund
financial statements.
Bond issuance costs, discounts and premiums in the issuance of long term debt, are reported as expenditures in
governmental fund statements, but are capitalized and amortized in the government-wide statements.
Unless due and payable, long-term liabilities, such as capital lease obligations, compensated absences, litigation,
and others only appear as liabilities in the government-wide statements.
Capital outlay spending in excess of capitalization thresholds are recorded as capital assets on the government-
wide statements, but are reported as expenditures on the governmental fund statements.
Bond and note proceeds result in liabilities on the government-wide statements, but are recorded as other
financing sources on the governmental fund statements.
Certain other outflows, such as debt service principal payments, represent decreases in liabilities on the
government-wide statements, but are reported as expenditures on the governmental fund statements.
The Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements.
Fund Financial Statements. The City's Major Funds are identified as its Sewage Disposal Fund, and it's Municipal
Parking System Fund, along with its General Fund and State and Federal Programs Fund. Data for the nonmajor funds
are combined into a single, aggregated presentation. A fund is a fiscal and accounting entity with a self-balancing set
of accounts that the City uses to keep track of specific sources of funding and spending for a particular purpose.
15
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
Governmental funds - Most of the City's basic services are reported in the governmental funds, which focus on
how money flows into and out of those funds and the balances left at year-end that are available for future
spending. The governmental fund financial statements provide a detailed short-term view of the City's general
government operations and the basic services it provides. Governmental fund information helps determine
whether there are greater or fewer financial resources that can be spent in the near future to finance the City's
programs. These funds are reported using modified accrual accounting, which measures cash and all other
financial assets that can readily be converted to cash. Governmental funds include the General Fund and special
revenue, capital project, debt service, and permanent funds.
Proprietary funds - When the City charges customers for the services it provides, whether to outside customers
or to other agencies within the City, these services are generally reported in proprietary funds. Proprietary funds
(enterprise and internal service) utilize full accrual accounting; the same method used by private sector
businesses. Enterprise funds report activities that provide supplies and services to the general public. Examples
are the Sewage Disposal Fund and the Municipal Parking Fund. Internal service funds are reported as
governmental activities on the government-wide statements.
Fiduciary Funds - The City acts as a trustee or fiduciary, for its employee pension plans. It is also responsible for
other assets that, because of a trust arrangement, can be used only for the trust beneficiaries. The City's
fiduciary activities are reported in separate Statements of Fiduciary Net Assets and Changes in Fiduciary Net
Assets. These funds, which include pension and other employee benefit funds, are reported using full accrual
accounting. The government-wide statements exclude fiduciary fund activities and balances because these assets
are restricted in purpose and do not represent spendable assets of the City to finance its operations.
Additional Required Supplementary Information
Following the basic financial statements is additional Required Supplementary Information that further explains and
supports the information in the financial statements. The Required Supplementary Information includes required
pension and other postemployment benefit supplementary information.
Other Supplementary Information
Other supplementary information includes combining financial statements for nonmajor governmental, proprietary,
and fiduciary funds. These funds are added together, by fund type, and presented in single columns in the basic
financial statements, but are not reported individually, as with major funds, on the governmental fund financial
statements.
16
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
Government-Wide Financial Analysis
The City's combined net assets decreased $29.9 million over the course of this fiscal year's operations to a total of
$398.0 million. Net assets of governmental activities decreased $32.6 million or 18.5%, and business-type activities
increased $2.8 million or 1.1%.
Net Assets
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
Current and other assets $ 43,411,053 $ 53,156,308 $ 72,606,690 $ 79,419,223 $116,017,743 $132,575,531
Capital assets, net 197,254,093 216,241,023 405,148,276 407,646,391 602,402,369 623,887,414
Total assets 240,665,146 269,397,331 477,754,966 487,065,614 718,420,112 756,462,945
Long-term liabilities 52,369,642 56,089,479 220,788,105 230,794,454 273,157,747 286,883,933
Other liabilities 44,419,526 36,799,761 2,803,746 4,863,654 47,223,272 41,663,415
Total liabilities 96,789,168 92,889,240 223,591,851 235,658,108 320,381,019 328,547,348
Net assets:
Invested in capital assets,
net of related debt 163,723,249 180,571,237 209,584,457 204,149,751 373,307,706 384,720,988
Restricted 14,524,584 14,777,571 12,382,060 13,080,302 26,906,644 27,857,873
Unrestricted (34,371,855) (18,840,717) 32,196,598 34,177,453 (2,175,257) 15,336,736
Total net assets $143,875,978 $176,508,091 $254,163,115 $251,407,506 $398,039,093 $427,915,597
The largest component (93.8%) of the City's net assets reflects its investment in capital assets (e.g. land, buildings,
equipment, infrastructure, and others), less any related debt outstanding that was needed to acquire or construct the
assets. Restricted net assets are the next largest component, comprising 6.8%, is subject to external restrictions such
as bond covenants, City Charter, State legislation or Constitutional provision. The remaining portion, unrestricted net
assets are resources that may be used at the City's discretion, but often have limitations based on policy action.
17
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
The following condensed financial information was derived from the government-wide Statement of Activities and
reflects how the City's net assets changed during the fiscal year:
Change in Net Assets
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
Program revenues
Charges for services $ 18,376,030 $ 18,974,531 $ 41,682,398 $ 41,470,617 $ 60,058,428 $ 60,445,148
Operating grants 31,928,983 30,154,681 1,331,737 4,456,708 33,260,720 34,611,389
Capital grants 260,656 189,414 2,683,657 1,439,044 2,944,313 1,628,458
General revenues
Taxes 61,449,930 65,933,339 - - 61,449,930 65,933,339
State shared revenues 12,710,114 14,214,339 12,710,114 14,214,339
Unrestricted grants
and contributions 13,731,847 13,040,235 13,731,847 13,040,235
Unrestricted investment
earnings 69,265 89,735 271,067 689,883 340,332 779,618
Gain (loss)on sale of
capital assets 123,066 108,601 (1,300,561) 21,166 (1,177,495) 129,767
Total revenues 138,649,891 142,704,875 44,668,298 487077,418 183,318,189 190,782,293
Expenses
General government 30,841,776 25,665,269 - - 30,841,776 25,665,269
Public safety 82,369,004 83,546,997 82,369,004 83,546,997
Public works 33,144,303 26,355,375 33,144,303 26,355,375
Recreation and culture 8,889,142 8,245,451 8,889,142 8,245,451
Community development 13,623,946 12,825,028 13,623,946 12,825,028
Interest on long-term debt 1,949,825 2,116,535 1,949,825 2,116,535
Sewage disposal system - - 26,836,597 267444,741 26,836,597 26,444,741
Municipal parking system 9,491,376 97896,498 9,491,376 9,896,498
Cemetery 639,000 755,766 639,000 755,766
Golf 810,372 846,817 810,372 846,817
Garbage and refuse - 1,515,600
collection 1,558,024 1,515,600 1,558,024 2,809,353
Recycling 3,041,328 2,809,353 3,041,328 2,809,353
Total expenses 170,817,996 158,754,655 42,376,697 42,268,775 213,194,693 201,023,430
Change in net assets,
before transfers (32,168,105) (16,049,780) 2,291,601 5,808,643 (29,876,504) (10,241,137)
Transfers (464,008) (633,814) 464,008 633,814
Change in net assets (32,632,113) (16,683,594) 2,755,609 6,442,457 (29,876,504) (10,241,137)
Net assets:
Beginning of year 176,508,091 193,191,685 251,407,506 244,965,049 427,915,597 438,156,734
End of year $143,875,978 $176,508,091 $254,163,115 $251,407,506 $398,039,093 $427,915,597
18
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
Governmental Activities. The following chart depicts revenues of the governmental activities for the fiscal year:
Revenues - Governmental Activities
Fiscal Year Ending June 30, 2012
Property tax and Special
Gain on Sale of Capital Assessments Income Tax
Assets 24.2% 20.2%
Unrestricted Investment -
Earnings
0.0%
Charges for Services
13.3%
Unrestricted Grants and
Contributions
9.9% Capital Grants and
Contributions Operating Grants and
State Shared Revenue Contributions(restricted)
9.2% 0.1% 23.0%
Property taxes comprised 24.2%, or $33.5 million, of governmental activity revenue, with $562,850 representing debt
service on voted unlimited tax general obligation debt. The City's operating millage is currently 15.44 mills. In
accordance with Charter and State Constitutional provisions, the City may levy up to 19.1692 mills for operations in
FY 2012. 3.73 potential mills remain unlevied, which equates to approximately $7.7 million in potential, but unlevied,
property tax revenue. During FY 2011/2012, voters authorized a 4-mill increase to take effect July 1, 2012 (FY
2012/2013), along with an override of the Headlee amendment. These actions increased the City's State-authorized
property tax rate cap to 20 mills, with 19.44 mills to be levied for FY 2012/2013.
Income taxes comprised 20.2%, or $27.9 million, of governmental activity revenue which, the full amount of which is
revenue to the General Fund. Local income tax rates are prescribed by State law, and limited in Lansing's case to 1%
of resident income and 0.5% of the income of persons working in the City, but living outside of its corporate
boundaries.
Restricted Operating Grants and Contributions made up $31.9 million, or 23.0% of governmental activity revenue. In
this category, $11.5 million are recurring revenues from: State Gas Et Weight tax revenues restricted for streets;
Community Development, HOME, and Emergency Shelter entitlement grants; and drug forfeiture funds restricted for
drug enforcement efforts. The remaining $20.4 million is attributable to non-entitlement grants.
Unrestricted Grants and Contributions account for the next-largest category of governmental activity Revenue,
comprising 19.1%, or $26.4 million, of revenues. Just-less-than-half of this category, $12.7 million, is attributed to
State revenue sharing, an amount distributed to municipalities by the State of Michigan by formula allocation of
portions of the State sales tax and motor fuel and weight taxes. Equity payments from the independently-managed-
and-operated Board of Water and Light account for $12.2 million of the category, with remaining $1.5 million coming
from payments from the State of Michigan for a payment in lieu of tax for its fire protection for its properties and
reimbursement of liquor license enforcement costs.
19
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
The following chart depicts expenses of the governmental activities for the fiscal year:
Expenses - Governmental Activities
Fiscal Year Ending June 30, 2012
Community Interest on Long-term
Development Debt
8.0% 1.1
General Government
(administrative)
Recreation and Culture 18.1%
5.2%
Public Works Public Safety
19.4% 48.2%
Business-type Activities. Net assets of the business-type activities increased by $2.8 million during the fiscal year to
$254.2 million. The main cause of this increase was the result of the result of the receipt of federal stimulus dollars
for the City's Combined Sewer Overflow (CSO) and tertiary building projects.
Financial Analysis of the City's Funds
As the City completed the fiscal year, its governmental funds reported combined ending fund balances of $17.4
million. Of this, $8.5 million is legally restricted and/or unavailable to spend (i.e. amounts tied up in inventories),
and $4.2 million is committed for designated projects, leaving $4.7 million unrestricted/uncommitted, which is the
"unassigned" the amounts in the City's General Fund and Budget Stabilization Fund.
General Fund Budgetary Highlights
The FY 2011/2012 budget was adopted as a balanced budget, based on projected revenues, without any use of
reserves. Due to the continued effects of the "Great Recession," income tax revenues and property tax revenues,
affected by bankruptcies and foreclosures, came in lower than anticipated. During the fiscal year, revenue
projections were downgraded and the budget was amended to include a potential $600,000 use of reserves. In the
end, use of reserves we not needed, and the combined unassigned fund balance for the General Fund and Budget
Stabilization fund increased by$2582341.
The FY 2012/2013 budget, adopted at level commensurate with projected decreases in property values and other the
revenue levels experienced in FY 2011/2012, does not include any use of reserves.
20
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
Sewage Disposal Fund
Net assets increased $5.7 million to $230.7 million in FY 2012. $2.7 million of that increase was due to the receipt of
American Reinvestment and Recovery Act (ARRA) monies for its Combined Sewer Overflow (CSO) and tertiary building
projects. The remaining $3.0 million of the increase resulted from operations during the fiscal year necessary to fund
the long-term debt associated with the CSO program in future years.
Municipal Parking Fund
The Municipal Parking Fund net assets decreased $2.6 million, the main reason for the decrease being the sale of
three parking system properties. Operationally, the parking system had a $1.2 million loss as a result of scheduled
parking ramp maintenance.
Capital Assets. At the end of the fiscal year 2012, the City had invested $602.4 million, net of accumulated
depreciation, in a broad range of capital assets (see the table below). Additional information regarding the City's
capital assets can be found in the notes to the basic financial statements. For more detailed information, please
refer to footnote 7.
Capital Assets (Net of Depreciation)
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
Land $ 25,084,983 $ 24,776,106 $ 13,503,321 $ 13,730,508 $ 38,588,304 $ 38,506,614
Land improvements 8,976,263 7,078,707 12,754,115 12,683,400 21,730,378 19,762,107
Buildings and improvements 54,304,128 52,941,270 95,812,441 100,185,463 150,116,569 153,126,733
Equipment 6,399,147 7,816,668 473,899 600,575 6,873,046 8,417,243
Infrastructure 102,158,566 114,872,419 233,737,519 239,427,084 335,896,085 354,299,503
Construction in progress 331,006 8,755,853 48,866,981 41,019,361 49,197,987 49,775,214
Total capital assets, net $197,254,093 $216,241,023 $405,148,276 $407,646,391 $602,402,369 $623,887,414
21
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
Debt Administration
The City, along with the Lansing Building Authority (LBA), a blended component unit of the City, is empowered by law
to authorize, issue, and sell debt obligations. Limited tax and unlimited tax general obligation bonds are backed by
the full faith and credit of the City. The City also issues revenue-dedicated bonded debt, whose payment for principal
and interest comes solely out of funds that receive legally-restricted revenues. The Sewage Disposal fund has the
City's only dedicated revenue bonds currently outstanding. LBA's bonds financed the construction of parking, golf
course, and firing range improvements. Revenues derived from user fees from persons using parking and golf facilities
fund the debt service requirements for related improvements, but they are also backed by a limited tax pledge. More
detailed information regarding the City's long-term obligations is presented in Note 10 (Long-Term Debt) to the
financial statements.
Outstanding Debt
2012 2011
Governmental activities
General obligation bonds $ 25,727,000 $ 27,687,000
Installment purchase contracts 8,193,616 9,564,693
Loans 512,577 779,580
Deferred amounts (4,524) 9,120
Compensated absences 10,601,091 10,927,004
Workers compensation 7,131,238 6,861,277
Tax settlement 208,644 260,805
Total governmental activities 52,369,642 56,089,479
Business-type activities
General obligation bonds 192,125,645 200,539,634
Revenue bonds 29,525,000 32,565,000
Loans 1,637,177 1,574,209
Deferred amounts (3,321,270) (4,572,660)
Compensated absences 821,553 688,271
Total business-type activities 220,788,105 230,794,454
Total outstanding debt $273,157,747 $286,883,933
During the year, the City issued $5.7 million in State revolving loan fund debt for the City's Wet Weather (formerly
Combined Sewer Overflow/Sanitary Sewer Overflow) environmental program in the Sewage Disposal System
(proprietary) fund. More detailed information regarding these activities and funds can be found in footnote 10, Long-
Term Debt.
Economic Condition and Outlook
The State of Michigan's economic challenges, including the national recession, American automobile industry crisis,
housing market and foreclosure impacts on property tax revenues, combined with rising labor force and healthcare
costs, continues to place budgetary and fiscal constraints on the City of Lansing. A structural imbalance between
revenue and expenditure growth exists, as is the case for the majority of cities, especially those that are urban
centers, in Michigan.
22
CITY OF LANSING, MICHIGAN
Management's Discussion and Analysis
To address these budgetary challenges, and to protect vital services to the public, since his inauguration in January,
2006, Mayor Bernero has implemented a budgetary strategy of maximizing revenues; reducing expenses; improving
operational and technological efficiencies; consolidating like functions; collaborating with neighboring municipalities,
counties, and non-profit entities to provide funding for City-owned assets that benefit the entire region. The Mayor
also continues to work aggressively with the unions to contain the rising cost of healthcare and other compensation
costs.
In this historic economic downturn, including the credit crisis in the private sector, the City saw significant economic
development announcements and national recognition (see Economic Condition and Outlook in the Transmittal
Letter). The City is poised to experience continued, significant economic growth in the next several years. As with
other municipalities, especially in Michigan, the City government will continue to face significant challenges in this
climate of declining property values and revenues in the face of rising compensation, healthcare, and energy costs.
The Mayor is committed to directing the City in a fiscally responsible manner -- living within the City's means and not
relying on reserves to balance the budget.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general
overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have
any questions about this report or need additional financial information, contact the Finance Department at (517) 483
4500.
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24
BASIC FINANCIAL STATEMENTS
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26
GOVERNMENT-WIDE FINANCIAL STATEMENTS
27
CITY OF LANSING, MICHIGAN
Statement of Net Assets
June 30, 2012
Primary Government
Governmental Business-type Component
Activities Activities Totals Units
Assets
Cash and investments $ 18,392,327 $ 9,475,493 $ 27,867,820 $ 2,379,511
Receivables, net 36,524,427 31,260,676 67,785,103 1,133,007
Internal balances (17,434,471) 17,434,471 - -
Due from primary government - - - 1,038,819
Inventories, prepaids and other assets 2,802,236 1,013,550 3,815,786 262,623
Restricted assets:
Cash and investments 3,126,534 13,304,737 16,431,271 1,919,523
Receivables, net - 117,763 117,763 -
Capital assets not being depreciated 25,415,989 62,370,302 87,786,291 -
Capital assets being depreciated, net 171,838,104 342,777,974 514,616,078 64,786
Total assets 240,665,146 477,754,966 718,420,112 6,798,269
Liabilities
Accounts payable and
accrued liabilities 13,263,170 1,466,258 14,729,428 1,349,157
Accrued interest payable 296,928 1,218,103 1,515,031 15,654,795
Due to component units 1,038,819 - 1,038,819 -
Unearned revenues 721,164 119,385 840,549 328,493
Long-term liabilities:
Due within one year 5,481,769 18,516,953 23,998,722 2,081,385
Due in more than one year 46,887,873 202,271,152 249,159,025 20,942,115
Net pension obligation, due in more than
one year 238,555 - 238,555 -
Net other postemployment benefit obligation,
due in more than one year 28,860,890 28,860,890 -
Total liabilities 96,789,168 223,591,851 320,381,019 40,355,945
Net assets
Invested in capital assets, net
of related debt 163,723,249 209,584,457 373,307,706 59,445
Restricted for:
Public safety 708,797 - 708,797 -
Public works 5,708,167 5,708,167
Community development 3,245,537 3,245,537
State mandated programs 36,000 36,000
Donations 16,256 - 16,256
Debt service 3,126,534 11,172,059 14,298,593
Capital projects - 1,210,001 1,210,001
Endowments (nonexpendable) 1,683,293 - 1,683,293
Unrestricted (deficit) (34,371,855) 32,196,598 (2,175,257) (33,617,121)
Total net assets (deficit) $ 143,875,978 $ 254,163,115 $ 398,039,093 $ (33,557,676)
The accompanying notes are an integral part of the financial statements.
28
CITY OF LANSING, MICHIGAN
Statement of Activities
For the Year Ended June 30, 2012
Program Revenues
Operating Capital
Charges Grants and Grants and Net (Expense)
Functions/Programs Expenses for Services Contributions Contributions Revenue
Primary government
Governmental activities:
General government $ 30,841,776 $ 6,428,110 $ 1,895,465 $ $ (22,518,201)
Public safety 82,369,004 8,525,524 9,997,470 (63,846,010)
Public works 33,144,303 2,797,443 11,295,524 255,656 (18,795,680)
Recreation and culture 8,889,142 557,609 279,750 5,000 (8,046,783)
Community development 13,623,946 67,344 8,458,427 - (5,098,175)
Interest on long-term debt 1,949,825 - 2,347 - (1,947,478)
Total governmental activities 170,817,996 18,376,030 31,928,983 260,656 (120,252,327)
Business-type activities:
Sewage disposal system 26,836,597 29,915,799 - 2,683,657 5,762,859
Municipal parking system 9,491,376 6,858,606 1,331,737 - (1,301,033)
Cemetery 639,000 240,394 - (398,606)
Golf 810,372 390,134 (420,238)
Garbage and rubbish collection 1,558,024 1,459,101 (98,923)
Recycling 3,041,328 2,818,364 - (222,964)
Total business-type activities 42,376,697 41,682,398 1,331,737 2,683,657 3,321,095
Total primary government $ 213,194,693 $ 60,058,428 $ 33,260,720 $ 2,944,313 $ (116,931,232)
Component units
Brownfield redevelopment $ 1,396,771 $ - $ 344,196 $ - $ (1,052,575)
Community development 4,333,465 - - (4,333,465)
Recreation and culture 6,495,770 5,379,444 1,143,409 27,083
Total component units $ 12,226,006 $ 5,379,444 $ 1,487,605 $ $ (5,358,957)
continued...
29
CITY OF LANSING, MICHIGAN
Statement of Activities
For the Year Ended June 30, 2012
Primary Government
Governmental Business-type Component
Activities Activities Totals Units
Changes in net assets
Net (expense) revenue $(120,252,327) $ 3,321,095 $(116,931,232) $ (5,358,957)
General revenues
Property taxes 33,506,860 - 33,506,860 5,952,652
Income taxes 27,943,070 27,943,070 -
Grants and contributions not
restricted to specific programs 26,441,961 26,441,961 -
Unrestricted investment earnings 69,265 271,067 340,332 10,595
Gain (loss)on sale of capital assets 123,066 (1,300,561) (1,177,495) -
Transfers-internal activities (464,008) 464,008 - -
Total general revenues and transfers 87,620,214 (565,486) 87,054,728 5,963,247
Change in net assets (32,632,113) 2,755,609 (29,876,504) 604,290
Net assets (deficit), beginning of year 176,508,091 251,407,506 427,915,597 (34,161,966)
Net assets (deficit), end of year $ 143,875,978 $ 254,163,115 $ 398,039,093 $ (33,557,676)
concluded
The accompanying notes are an integral part of the financial statements.
30
FUND FINANCIAL STATEMENTS
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32
CITY OF LANSING, MICHIGAN
Governmental Fund Financial Statements
Major Funds
The General Fund is the general operating fund of the City. It is used to account for and report all
financial resources not accounted for and reported in another fund.
The State and Federal Programs fund accounts for all revenues received from miscellaneous grants
and local contributions. These revenues are used for projects as detailed in individual grant
applications.
Nonmajor Funds
Nonmajor governmental funds are presented, by fund type, beginning on the pages listed below:
Special revenue funds, page 109.
Debt service funds, page 121.
Capital projects funds, page 125.
Permanent funds, page 131.
33
CITY OF LANSING, MICHIGAN
Balance Sheet
Governmental Funds
June 30, 2012
State and Nonmajor
Federal Governmental
General Programs Funds Totals
Assets
Cash and cash equivalents $ 1,162,451 $ - $ 626,878 $ 1,789,329
Equity in pooled cash 6,947,757 246,221 7,580,928 14,774,906
Investments - - 425,107 425,107
Accounts receivable, net 14,302,803 1,477,353 15,780,156
Taxes receivable 463,964 - 463,964
Special assessments receivable - - 690,559 690,559
Loans receivable 51,170 1,385,000 1,436,170
Accrued interest receivable - - 2,009,367 2,009,367
Due from other funds 9,619,879 - 3,034,151 12,654,030
Due from other governments 5,469,083 6,748,132 1,732,322 13,949,537
Inventories 46,418 - 1,168,711 1,215,129
Prepaids 46,120 - 46,120
Total assets $ 38,058,475 $ 7,045,523 $ 20,130,376 $ 65,234,374
Liabilities
Accounts payable $ 2,286,526 $ 2,020,636 $ 1,271,436 $ 5,578,598
Deposits payable - - 80,734 80,734
Accrued payroll 1,386,043 19,982 257,242 1,663,267
Retainage payable 1,117,930 - 148 1,118,078
Due to other funds 22,754,942 4,270,000 1,935,988 28,960,930
Due to component units 1,038,819 - - 1,038,819
Advance from other funds - 527,815 527,815
Due to other governments 1,548,340 - 225,777 1,774,117
Deferred revenue 2,181,107 720,171 3,862,188 6,763,466
Other 372,569 - - 372,569
Total liabilities 32,686,276 7,030,789 8,161,328 47,878,393
Fund balances (Note 11)
Nonspendable 92,538 - 2,852,004 2,944,542
Restricted 16,256 14,734 5,551,687 5,582,677
Committed 65,373 - 4,109,131 4,174,504
Unassigned (deficit) 5,198,032 (543,774) 4,654,258
Total fund balances 51372,199 14,734 11,969,048 17,355,981
Total liabilities and fund balances $ 38,058,475 $ 7,045,523 $ 20,130,376 $ 65,234,374
The accompanying notes are an integral part of the financial statements.
34
CITY OF LANSING, MICHIGAN
Reconciliation
Fund Balances of Governmental Funds
to Net Assets of Governmental Activities
June 30, 2012
Fund balances-total governmental funds $ 17,355,981
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the funds.
Capital assets not being depreciated 25,415,989
Capital assets being depreciated, net 171,838,104
Capital assets accounted for in internal service funds, net (6,713,417)
Because the focus of governmental funds is on short-term financing, some
assets will not be available to pay for current expenditures. Those assets
(i.e., receivables)are offset by deferred revenues in the governmental funds
and, therefore, are not included in fund balance.
Deferred ambulance fees receivable 1,377,592
Deferred nuisance fees receivable 689,379
Deferred loans receivable 1,236,170
Deferred long-term interest receivable 2,009,367
Deferred long-term special assessments receivable 615,657
Deferred long-term taxes and tax settlement receivables 114,137
Internal service funds are used by management to charge the costs of certain
equipment maintenance to individual funds. The assets and liabilities of the
internal service funds are included in governmental activities in the statement
of net assets. 7,090,711
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Bonds, loans and leases payable (30,648,462)
Accrued interest on bonds, loans and leases payable (267,896)
Deferred bond issuance costs, net 78,835
Net pension obligation (238,555)
Net other postemployment benefit obligation (28,860,890)
Compensated absences and other long-term liabilities (17,216,724)
Net assets of governmental activities $ 143,875,978
The accompanying notes are an integral part of the financial statements.
35
CITY OF LANSING, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2012
State and Nonmajor
Federal Governmental
General Programs Funds Totals
Revenues
Taxes and special assessments $ 32,501,559 $ $ 1,081,889 $ 33,583,448
Income taxes 27,943,070 - 27,943,070
Licenses and permits 1,538,325 - 1,538,325
Intergovernmental 14,270,567 15,046,129 12,115,097 41,431,793
Charges for services 9,940,823 - 8,735,575 18,676,398
Fines and forfeits 2,291,109 - 593,219 2,884,328
Interest and rents 48,213 907 14,451 63,571
Contributions 12,359,733 - 10,000 12,369,733
Donations from private sources - 5,000 5,000
Otherrevenues 144,372 255,702 400,074
Total revenues 101,037,771 15,047,036 22,810,933 138,895,740
Expenditures
Current expenditures:
General government 22,439,973 - 2,598,616 25,038,589
Public safety 58,696,097 7,465,775 66,161,872
Public works 6,225,177 - 6,225,177
Highways and streets - 8,589,298 8,589,298
Recreation and culture 6,996,074 - 488 6,996,562
Other functions 2,542,745 15,456,519 - 17,999,264
Debt service:
Principal 1,547,076 - 1,901,004 3,448,080
Interest 971,525 864,693 1,836,218
Capital outlay - - 6,466,084 6,466,084
Total expenditures 99,418,667 15,456,519 27,885,958 142,761,144
Revenues over (under) expenditures 1,619,104 (409,483) (5,075,025) (3,865,404)
Other financing sources (uses)
Transfers in 348,000 319,870 7,226,009 7,893,879
Transfers out (3,223,597) - (5,134,290) (8,357,887)
Proceeds on sale of capital assets 1,298,205 100,731 - 1,398,936
Total other financing sources (uses) (1,577,392) 420,601 2,091,719 934,928
Net change in fund balances 41,712 11,118 (2,983,306) (2,930,476)
Fund balances, beginning of year 5,330,487 3,616 14,952,354 20,286,457
Fund balances, end of year $ 5,372,199 $ 14,734 $ 11,969,048 $ 17,355,981
The accompanying notes are an integral part of the financial statements.
36
CITY OF LANSING, MICHIGAN
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Assets of Governmental Activities
For the Year Ended June 30, 2012
Net change in fund balances-total governmental funds $ (2,930,476)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlay as expenditures. However, in the statement
of activities, the cost of those assets is allocated over their estimated useful lives as
depreciation expense.
Capital assets purchased/constructed 2,996,304
Depreciation expense (19,093,618)
Loss on disposal of capital assets (2,217,440)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds, but rather are deferred to subsequent
fiscal years.
Change in deferred ambulance fees receivable (304,571)
Change in deferred nuisance fees receivable (63,141)
Change in deferred loans receivable (1,906)
Change in deferred long-term interest receivable 69,250
Change in deferred special assessments receivable (102,749)
Change in deferred taxes and tax settlement receivables (26,000)
Internal service funds are used by management to charge the costs of certain
equipment maintenance to individual funds. The net increase (decrease)in the
net assets of the internal service funds is reported with governmental activities.
Net operating loss from governmental activities in internal service funds (1,783,903)
Interest revenue from governmental internal service funds 8,041
Gain on sale of capital assets from governmental internal service funds 123,066
Interest expense from governmental internal service funds (152,225)
Debt proceeds provide current financial resources to governmental funds in the
period issued, but issuing debt increases long-term liabilities in the statement of
net assets. Repayment of debt principal is an expenditure in the funds, but the
repayment reduces long-term liabilities in the statement of net assets.
Principal payments on long-term liabilities 3,448,080
Certain expenditures are reported in governmental funds that reduce long-term
liabilities for purposes of the statement of net assets.
Change in estimated liability for workers'compensation (269,961)
Some expenses reported in the statement of activates do not require the use of current
financial resources and therefore are not reported as expenditures in the funds.
Change in accrued interest payable on long-term liabilities 34,801
Amortization of debt-related costs 3,817
Change in net other postemployment benefit obligation (12,507,430)
Change in net pension obligation (257,964)
Change in the accrual for compensated absences 343,751
Change in the accrual for tax settlement agreement 52,161
Change in net assets of governmental activities $ (32,632,113)
The accompanying notes are an integral part of the financial statements.
37
CITY OF LANSING, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
For the Year Ended June 30, 2012
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
Revenues
Property taxes $ 33,729,335 $ 32,513,898 $ 32,501,559 $ (12,339)
Income taxes 29,800,000 28,200,000 27,943,070 (256,930)
Licenses and permits 1,810,140 1,673,200 1,538,325 (134,875)
Intergovernmental 9,025,960 13,595,960 14,270,567 674,607
Charges for services 9,909,795 10,970,672 9,940,823 (1,029,849)
Fines and forfeits 2,441,420 2,441,420 2,291,109 (150,311)
Interest and rents 119,000 101,000 48,213 (52,787)
Contributions 12,800,000 12,331,250 12,359,733 28,483
Otherrevenues 160,350 368,600 144,372 (224,228)
Total revenues 99,796,000 102,196,000 101,037,771 (1,158,229)
Expenditures
General government:
Attorney's office 1,176,080 1,239,663 1,253,205 13,542
City clerk 817,970 819,992 807,223 (12,769)
Council 531,380 555,759 535,403 (20,356)
Courts 4,423,100 4,823,257 4,696,338 (126,919)
Internal audit 148,335 149,549 146,946 (2,603)
Finance 9,767,420 9,423,800 9,395,336 (28,464)
Library rental 155,000 155,000 161,030 6,030
LEPFA support 1,143,408 1,143,408 1,143,408 -
Human resources 1,475,640 1,473,774 1,186,216 (287,558)
Mayor 629,730 648,970 633,988 (14,982)
Office of community media 253,570 260,229 244,620 (15,609)
Planning / neighborhood development 2,207,000 2,250,041 2,236,260 (13,781)
Budgetary savings from attrition (800,000) - -
Total general government 21,928,633 22,943,442 22,439,973 (503,469)
Public safety:
Police 30,029,430 30,928,002 30,626,730 (301,272)
Fire 26,541,930 28,238,191 28,069,367 (168,824)
Total public safety 56,571,360 59,166,193 58,696,097 (470,096)
Public works 6,054,830 6,104,398 6,225,177 120,779
continued...
38
CITY OF LANSING, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
For the Year Ended June 30, 2012
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
Expenditures (concluded)
Recreation and culture $ 6,944,900 $ 6,877,368 $ 6,996,074 $ 118,706
Other functions:
Human relations / community services 644,040 702,199 693,869 (8,330)
Human services / community support 1,581,400 2,004,732 1,848,876 (155,856)
Total other functions 2,225,440 2,706,931 2,542,745 (164,186)
Debt service 3,082,400 2,560,800 2,518,601 (42,199)
Total expenditures 96,807,563 100,359,132 99,418,667 (940,465)
Revenues over (under) expenditures 2,988,437 1,836,868 1,619,104 (217,764)
Other financing sources (uses)
Transfers in 574,800 348,000 348,000 -
Transfers out (3,569,237) (4,210,077) (3,223,597) 986,480
Proceeds on sale of capital assets 61000 1,206,000 1,298,205 92,205
Total other financing sources (uses) (2,988,437) (2,656,077) (1,577,392) 1,078,685
Net change in fund balance - (819,209) 41,712 860,921
Fund balance, beginning of year 5,330,487 5,330,487 5,330,487 -
Fund balance, end of year $ 5,330,487 $ 4,511,278 $ 5,372,199 $ 860,921
concluded
The accompanying notes are an integral part of the financial statements.
39
CITY OF LANSING, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - State and Federal Programs
For the Year Ended June 30, 2012
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
Revenues
Intergovernmental $ $ 32,166,265 $ 15,046,129 $ (17,120,136)
Charges for services 8,250 - (8,250)
Interest and rents 4,848 907 (3,941)
Total revenues 32,179,363 15,047,036 (17,132,327)
Expenditures
Other functions 28,755,896 15,456,519 (13,299,377)
Revenues over (under) expenditures 3,423,467 (409,483) (3,832,950)
Other financing sources
Transfers in 213,941 319,870 105,929
Proceeds on sale of capital assets - 100,731 100,731
Total other financing sources 213,941 420,601 206,660
Net change in fund balance 3,637,408 11,118 (3,626,290)
Fund balance, beginning of year 3,616 3,616 3,616
Fund balance, end of year $ 3,616 $ 3,641,024 $ 14,734 $ (3,626,290)
Note: This fund accounts for a variety of individual grant programs that are adopted as awarded. As the fund
expenditures are adopted upon grant award during the fiscal year, there is no original budget required for this
fund.
The accompanying notes are an integral part of the financial statements.
40
CITY OF LANSING, MICHIGAN
Proprietary Fund Financial Statements
Major Funds
The Sewage Disposal System Fund accounts for the provision of sewage disposal services to the
residents of the City.
The Municipal Parking System Fund accounts for the operation of City-owned parking facilities.
Nonmajor Funds and Internal Service Funds
Nonmajor enterprise funds and internal service funds are presented, by fund type, beginning on the
pages listed below:
Enterprise funds, page 135.
Internal service funds, page 141.
41
CITY OF LANSING, MICHIGAN
Statement of Net Assets
Proprietary Funds
June 30, 2012
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Assets
Current assets:
Cash and cash equivalents $ - $ 340,645 $ 500 $ 341,145 $ -
Equity in pooled cash 5,968,578 2,022,019 1,143,751 9,134,348 1,402,985
Accounts receivable, net 4,781,736 839,217 542,838 6,163,791 2,194,674
Accrued interest receivable - 97,077 - 97,077 -
Lease receivable,current 607,835 1,705,081 - 2,312,916 -
Inventories 85,529 - 128,220 213,749 904,071
Prepaids - 33 - 33 504,216
Due from other funds 19,0297452 5,109,420 24,1387872 -
Restricted accounts receivable - 117,763 117,763
Total current assets 30,473,130 10,231,255 1,815,309 42,519,694 5,005,946
Noncurrent assets:
Restricted cash and cash equivalents 12,212,499 1,092,238 - 13,304,737 3,126,534
Advances to other funds - 527,815 527,815 -
Lease receivable, net of current portion 10,962,849 11,029,891 21,992,740
Loans receivable - 694,152 694,152 -
Bond issue costs, net 385,464 414,304 799,768 53,865
Capital assets not being depreciated 49,287,729 12,558,920 523,653 62,370,302 386,303
Capital assets being depreciated, net 315,707,089 23,913,279 3,157,606 342,777,974 6,327,114
Total non-current assets 388,555,630 50,2307599 3,6817259 442,4677488 9,8937816
Total assets 419,0287760 60,4617854 5,4967568 484,9877182 14,8997762
Liabilities
Current liabilities:
Accounts payable 1,119,844 130,686 92,983 1,3437513 1,713,548
Deposits payable - 41,615 - 41,615 -
Accrued interest payable 1,0407440 170,938 6,725 1,2187103 29,032
Accrued payroll 44,889 21,988 14,053 80,930 64,736
Retainage payable - 200 - 200 -
Claims incurred but not reported - - - - 897,523
Due to other funds 6,932,216 300,000 7,2327216 599,756
Unearned revenues - - 119,385 119,385 -
Bonds and notes payable,current portion 13,489,038 4,872,069 85,000 18,446,107 295,000
Compensated absences,current portion 4,238 59,186 7,422 70,846 31,638
Total current liabilities 22,630,665 5,296,682 625,568 28,552,915 3,631,233
Noncurrent liabilities:
Bonds and notes payable, net of current portion 165,201,195 35,930,317 388,933 201,520,445 3,485,207
Compensated absences, net of current portion 479,848 53,065 217,794 750,707 692,611
Total noncurrent liabilities 165,681,043 35,983,382 606,727 202,271,152 4,177,818
Total liabilities 188,311,708 41,280,064 1,232,295 230,824,067 7,809,051
Net assets
Invested in capital assets, net of related debt 197,875,269 8,501,862 3,207,326 209,584,457 2,933,210
Restricted for debt retirement 11,172,059 - - 11,172,059 3,126,534
Restricted for capital projects - 1,210,001 - 1,210,001 -
Unrestricted 21,669,724 9,469,927 1,056,947 32,196,598 1,030,967
Total net assets $ 230,717,052 $ 19,181,790 $ 4,264,273 $ 254,163,115 $ 7,090,711
The accompanying notes are an integral part of the financial statements.
42
CITY OF LANSING, MICHIGAN
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended June 30, 2012
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Operating revenues
Charges for services $ 29,915,799 $ 6,858,606 $ 4,907,993 $ 41,682,398 $ 64,726,153
Operating expenses
Personal services 5,939,376 1,947,486 3,508,548 11,395,410 6,165,927
Purchase of goods and services 6,623,287 2,522,106 2,379,102 11,524,495 58,723,499
Depreciation 9,282,577 2,189,756 132,032 11,604,365 1,620,630
Total operating expenses 21,845,240 6,659,348 6,019,682 34,524,270 66,510,056
Operating income(loss) 8,070,559 199,258 (1,111,689) 7,158,128 (1,783,903)
Nonoperating revenues(expenses)
Interest revenue 262,712 8,355 271,067 8,041
Gain (loss)on sale of capital assets - (1,300,561) (1,300,561) 123,066
Interest expense and fees (4,991,357) (2,832,028) (29,042) (7,852,427) (152,225)
Otherrevenue 1,331,737 1,331,737
Total nonoperating revenues(expenses) (4,728,645) (2,792,497) (29,042) (7,550,184) (21,118)
Income(loss)before contributions and transfers 3,341,914 (2,593,239) (1,140,731) (392,056) (1,805,021)
Capital contributions-ARRA 2,683,657 - 2,683,657
Transfers in - 780,924 780,924
Transfers out (300,000) (16,916) (316,916)
Change in net assets 5,725,571 (2,593,239) (376,723) 2,755,609 (1,805,021)
Net assets, beginning of year 224,991,481 21,775,029 4,640,996 251,407,506 8,895,732
Net assets,end of year $ 230,717,052 $ 19,181,790 $ 4,264,273 $ 254,163,115 $ 7,090,711
The accompanying notes are an integral part of the financial statements.
43
CITY OF LANSING, MICHIGAN
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2012
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Cash flows from operating activities
Cash received from customers $ 30,874,075 $ 7,120,802 $ 4,936,696 $ 42,931,573 $ -
Cash received from interfund services - - - - 65,278,625
Cash payments for goods and services (9,016,081) (2,893,347) (2,185,764) (14,095,192) (60,061,031)
Cash payments to employees (5,988,865) (1,966,107) (3,519,492) (11,474,464) (6,246,172)
Net cash provided by(used in)
operating activities 15,869,129 2,261,348 (768,560) 17,361,917 (1,028,578)
Cash flows from noncapital financing activities
Transfers in - - 780,924 780,924
Transfers out (300,000) (16,916) (316,916)
Net cash provided by(used in)
noncapital financing activities (300,000) - 764,008 464,008
Cash flows from capital and related financing activities
Proceeds from sale of capital assets 33,016 - 33,016 123,066
Acquisition and construction of capital assets (8,850,646) (1,589,181) (10,439,827) (948,454)
Capital grants received 2,683,657 - 2,683,657
Cash received for finance charges - 1,331,737 1,331,737
Principal paid on revenue and general obligation bonds (12,690,000) (4,420,000) (80,000) (17,190,000) (150,000)
Interest paid on revenue and general obligation bonds (4,865,456) (1,609,004) (28,573) (6,503,033) (147,057)
Proceeds from issuance of long-term debt 5,736,011 62,968 5,798,979
Payments received on capital lease 517,323 1,676,706 2,194,029
Net cash used in capital and related
financing activities (17,469,111) (4,513,758) (108,573) (22,091,442) (1,122,445)
Cash flows from investing activities
Interest and dividends received 262,712 8,355 271,067 8,041
Loans made to others - (257,093) (257,093)
Net cash provided by(used in)
investing activities 262,712 (248,738) 13,974 8,041
Net decrease in cash and cash equivalents (1,637,270) (2,501,148) (113,125) (4,251,543) (2,142,982)
Cash and cash equivalents, beginning of year 19,818,347 5,956,050 1,257,376 27,031,773 6,672,501
Cash and cash equivalents,end of year $ 18,181,077 $ 3,454,902 $ 1,144,251 $ 22,780,230 $ 4,529,519
Reconciliation to statement of net assets
Cash and cash equivalents $ - $ 340,645 $ 500 $ 341,145 $ -
Equity in pooled cash 5,968,578 2,022,019 1,143,751 9,134,348 1,402,985
Restricted cash and cash equivalents 12,212,499 1,092,238 - 13,304,737 3,126,534
$ 18,181,077 $ 3,454,902 $ 1,144,251 $ 22,780,230 $ 4,529,519
continued...
44
CITY OF LANSING, MICHIGAN
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2012
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Reconciliation of operating income(loss)to net cash
provided by(used in)operating activities
Operating income(loss) $ 8,070,559 $ 199,258 $ (1,111,689) $ 7,158,128 $ (1,783,903)
Adjustments to reconcile operating income(loss)to
net cash provided by(used in)operating activities:
Depreciation expense 9,282,577 2,189,756 132,032 11,604,365 1,620,630
Change in assets and liabilities:
Accounts receivable (514,915) 315,264 28,703 (170,948) 552,472
Accrued interest receivable 12,781 - 12,781 -
Inventories - (34,017) (34,017) (73,830)
Prepaids (33) (33) 255,157
Due from other funds (434,108) (65,849) (499,957) -
Advances to other funds (284,436) - (284,436) -
Accounts payable (1,878,410) 27,449 23,224 (1,827,737) 741,354
Deposits payable 16,084 - 16,084 -
Accrued interest payable (36,176) (1,358) (1,100) (38,634) (2,675)
Accrued payroll (49,489) (18,621) (10,944) (79,054) (750,384)
Claims incurred but not reported - - - (505,237)
Due to other funds 1,473,191 110,000 1,583,191 (1,100,000)
Advances from other funds - (80,531) - (80,531)
Due to other governments (125,089) (125,089)
Unearned revenues - (5,478) (5,478) -
Compensated absences 80,989 (48,416) 100,709 133,282 17,838
Net cash provided by(used in)operating activities $ 15,869,129 $ 2,261,348 $ (768,560) $ 17,361,917 $ (1,028,578)
concluded
The accompanying notes are an integral part of the financial statements.
45
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46
CITY OF LANSING, MICHIGAN
Fiduciary Fund Financial Statement
Pension and Other Postemployment Benefit Trust Funds - Employee pension and other
postemployment benefit trust funds accept payments made by the City, invest fund resources,
calculate and pay pensions to retirees (or beneficiaries), and account for post-employment
healthcare coverage.
Combining schedules for fiduciary funds are presented in the notes to the financial statements.
Agency Funds - These funds account for resources held in a trustee or agent capacity for the 54-A
District Court.
Combining statements for agency funds are presented, by fund type, beginning on page 147.
47
CITY OF LANSING, MICHIGAN
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2012
Pension
and Other
Postemployment
Trust Agency
Funds Funds
Assets
Cash and cash equivalents $ 7,994,961 $
Equity in pooled cash - 59,163
Investments:
Money market funds 4,388,031
Government obligations 69,606,017 -
Corporate bonds 831569,767
Common stocks 210,501,377
Mutualfunds 911794,523
Contribution receivable 1,603
Dividends and interest receivable 525,770
Total assets 468,382,049 $ 59,163
Liabilities
Accounts payable 3,104,988 $ -
Undistributed receipts - 59,163
Total liabilities 3,104,988 $ 59,163
Net assets held in trust for
Pension benefits 417,961,994
Other postemployment benefits 47,315,067
Total net assets $ 465,277,061
The accompanying notes are an integral part of the financial statements.
48
CITY OF LANSING, MICHIGAN
Statement of Changes in Fiduciary Net Assets
Pension and Other Postemployment Benefit Trust Funds
For the Year Ended June 30, 2012
Additions
Investment income:
Net appreciation in fair value
of investments $ 8,255,693
Interest income 6,612,504
Dividend income 2,103,044
Investment expenses (5,921)
Net investment income 16,965,320
Contributions:
Employer 37,465,581
Plan members 3,982,539
Total contributions 41,448,120
Total additions 58,413,440
Deductions
Participant benefits 65,201,176
Administrative expense 1,768,283
Total deductions 66,969,459
Net change in net assets held in trust (8,556,019)
Net assets held in trust for pension and other postemployment benefits
Beginning of year 473,833,080
End of year $ 465,277,061
The accompanying notes are an integral part of the financial statements.
49
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50
COMPONENT UNITS
51
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52
CITY OF LANSING, MICHIGAN
Discretely Presented Component Units
Discretely presented component units are entities that are legally separate from the City but for
which the City is financially accountable, or their relationship with the City is such that exclusion
would cause the City's financial statements to be misleading or incomplete. The City has four
discretely presented component units:
Brownfield Redevelopment Authority
Tax Increment Finance Authority
Lansing Entertainment and Public Facilities Authority
Smart Zone
Complete financial statements for each of the individual component units, excluding Smart Zone,
may be obtained from the entity's administrative offices. Separately-issued financial statements
are not prepared for the Smart Zone.
53
CITY OF LANSING, MICHIGAN
Combining Statement of Net Assets
Discretely Presented Component Units
June 30, 2012
Lansing
Tax Entertainment
Brownfield Increment Ft Public
Redevelopment Finance Facilities Smart
Authority Authority Authority Zone Totals
Assets
Cash and cash equivalents $ 948,980 $ 1,153,657 $ 276,874 $ $ 2,379,511
Receivables, net 812,575 - 320,432 1,133,007
Due from primary government 294,100 742,107 - 2,612 1,038,819
Inventories, prepaids and other assets 10,188 153,538 98,897 - 262,623
Restricted cash and cash equivalents - 1,442,508 477,015 1,919,523
Capital assets being depreciated, net - - 64,786 - 64,786
Total assets 2,065,843 3,491,810 1,238,004 2,612 6,798,269
Liabilities
Accounts payable and
accrued liabilities 1,029,956 - 319,201 - 1,349,157
Accrued interest payable 29,476 15,625,319 - 15,654,795
Unearned revenues - - 328,493 328,493
Long-term debt:
Due within one year 415,000 1,663,777 2,608 2,081,385
Due in more than one year 667,929 20,271,453 2,733 20,942,115
Total liabilities 2,142,361 37,560,549 653,035 40,355,945
Net assets
Invested in capital assets, net of
related debt - - 59,445 59,445
Unrestricted (deficit) (76,518) (34,068,739) 525,524 2,612 (33,617,121)
Total net assets (deficit) $ (76,518) $ (34,068,739) $ 584,969 $ 2,612 $ (33,557,676)
The accompanying notes are an integral part of the financial statements.
54
CITY OF LANSING, MICHIGAN
Combining Statement of Activities
Discretely Presented Component Units
June 30, 2012
Lansing
Tax Entertainment
Brownfield Increment £t Public
Redevelopment Finance Facilities Smart
Authority Authority Authority Zone Totals
Expenses
Brownfield redevelopment $ 1,396,771 $ $ $ $ 1,396,771
Community development - 4,333,465 - 4,333,465
Recreation and culture - - 6,495,770 6,495,770
Total expenses 1,396,771 4,333,465 6,495,770 12,226,006
Program revenues
Charges for services - - 5,379,444 5,379,444
Operating grants and contributions 344,196 1,143,409 1,487,605
Total program revenues 344,196 6,522,853 6,867,049
Net program (expense) revenue (1,052,575) (4,333,465) 27,083 (5,358,957)
General revenues
Property taxes 1,352,126 4,600,526 - 5,952,652
Unrestricted investment earnings 2,093 8,377 125 10,595
Total general revenues 1,354,219 4,608,903 125 5,963,247
Change in net assets 301,644 275,438 27,208 604,290
Net assets (deficit), beginning of year (378,162) (34,344,177) 557,761 2,612 (34,161,966)
Net assets (deficit), end of year $ (76,518) $ (34,068,739) $ 584,969 $ 2,612 $ (33,557,676)
The accompanying notes are an integral part of the financial statements.
55
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56
NOTES TO FINANCIAL STATEMENTS
57
CITY OF LANSING, MICHIGAN
Index - Notes to Financial Statements
Page
1. Summary of Significant Accounting Policies 59
Reporting entity
Government-wide and fund financial statements
Measurement focus, basis of accounting, and financial statement presentation
Assets, liabilities net assets/equity
2. Budgetary Information 66
3. Deficit Fund Equity 68
4. Deposits and Investments 68
5. Receivables 74
6. Deferred Revenue 75
7. Capital Assets 75
8. Accounts Payable and Accrued Liabilities 77
9. Interfund Receivables, Payables and Transfers 77
10.Long-Term Debt 79
11.Fund Balances - Governmental Funds 83
12.Net Assets Invested in Capital Assets, Net of Related Debt 84
13.Segment Information - Enterprise Funds 84
14.Risk Management 84
15.Property Taxes 85
16.Contingent Liabilities 86
17.Pension Plans 86
18.Other Postemployment Benefits 95
58
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lansing (the "City") was incorporated in 1859. In 1909, the City came under the provisions of
Act 279, P.A. 1909, as amended ("Home Rule City Act"). The City operates under a strong Mayor form of
government in which the Mayor is responsible for implementation and administration of City policy as
established by City Council.
The accounting and reporting policies of the City conform in all material respects to generally accepted
accounting principles (GAAP) as applicable to governments. The Governmental Accounting Standards
Board (GASB) is the standard setting body for establishing governmental accounting and financial
reporting principles, which are primarily set forth in the GASB's Codification of Governmental Accounting
and Financial Reporting Standards (GASB Codification). Following is a summary of the significant policies:
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the City and
its component units, entities for which the City is considered to be financially accountable. The financial
data of the component units are included in the City's reporting entity because of the significance of
their operational or financial relationships with the City.
Blended Component Unit
A blended component unit is a legally separate entity from the City but is so intertwined with the City
that it is, in substance, the same as the City. It is reported as part of the City and its financial data is
combined with data of the appropriate funds. The City has one blended component unit, the Building
Authority with a fiscal June 30 year-end. This component unit provides services primarily to benefit the
City. The blended unit is described as follows:
The Building Authority (the "Authority") was established by the City under Act 31, Michigan Public Acts of
1948. The Mayor, with the advice and consent of City Council, appoints the Authority's governing body and
designates management. The Authority uses the proceeds of its tax-exempt bonds to finance the
construction or acquisition of capital assets for the City only. The bonds are secured by lease agreements
with the City and will be retired through lease payments from the City. The financial activity, assets,
liabilities and equity of the Authority are incorporated within the City's Municipal Parking System and
Golf enterprise funds, and the 1998 Building Authority Debt Service Fund.
Discretely Presented Component Units
Discretely presented component units are entities that are legally separate from the City but for which
the City is financially accountable, or their relationship with the City is such that exclusion would cause
the City's financial statements to be misleading or incomplete. The City has four discretely presented
component units, the Brownfield Redevelopment Authority, the Tax Increment Financing Authority, the
Lansing Entertainment and Public Facilities Authority, and the Smart Zone, each with a fiscal June 30
year-end. The discretely presented component units are as follows:
59
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The Brownfield Redevelopment Authority was established by the City on August 17, 1997, under the
authority contained in Act 381, Michigan Public Acts of 1996 (the "Act"). The Act authorizes the City to
establish and to designate the boundaries of a Brownfield redevelopment zone. The Brownfield
Redevelopment Authority is appointed by City Council to preside over such a zone, and it is authorized to
promote the revitalization of environmentally distressed areas within the City of Lansing. The Act allows
the Brownfield Redevelopment Authority to participate in a broad range of improvement activities
intended to encourage the reuse of industrial and commercial property by offering economic incentives
for redevelopment to prevent property value deterioration. Tax increment financing plans must be
approved by the City.
Tax increment financing permits the Brownfield Redevelopment Authority to capture tax revenues which
are attributable to increases in the value of real and personal property located within an approved
project area. Current activities of the Brownfield Redevelopment Authority include collections of
property tax revenues on project areas for the Rite Aid Pharmacy and the former Motor Wheel Site Plant.
The Tax Increment Finance Authority ("TIFA") was established by the City under the authority contained
in Act 450, Michigan Public Acts of 1981 ("Act 450"). Act 450 authorizes the City to designate specific
districts within its corporate limits as TIFA districts. The TIFA presides over such districts, formulating
plans for public improvements, economic development, neighborhood revitalization, and historic
preservation within the districts. Act 450 allows the TIFA to participate in a broad range of improvement
activities intended to contribute to economic growth and prevent property value deterioration. The
TIFA's governing body is appointed by the Mayor with the advice and consent of the City Council. Bond
issuances, to fund the above activities, are approved by the City Council and the legal liability for the
debt remains with the City.
The Lansing Entertainment and Public Facilities Authority ("LEPFA") was established under the charter of
the City of Lansing in February 1996, replacing the former Greater Lansing Convention/Exhibition
Authority, which had been responsible for operating and managing the Lansing Center and the Lansing
Civic Arena (the latter through the fiscal year ended June 30, 1995). LEPFA was established to oversee
the management and operations of the Lansing Center, the City Market and the Cooley Law School
stadium.
LEPFA is chartered as a building authority under the provisions of Act 31, Public Acts of Michigan, 1948. In
the event of dissolution or termination of LEPFA, all assets and rights of the Authority shall revert to the
City. LEPFA's Board of Commissioners consists of thirteen members appointed by the Mayor of the City of
Lansing and approved by the City Council.
The Lansing Regional SmartZone ("SmartZone") was established by the City of Lansing and the City of East
Lansing under the authority contained in Act 281, Public Act of Michigan of 1986 ("Act 281"). Act 281
authorizes the Cities to create a multi-jurisdictional local development finance authority. The SmartZone
shall be known and exercise its powers under title of the Local Development Finance Authority of the
Cities of Lansing and East Lansing. The SmartZone is fiscally dependent on the City of Lansing; the City
approves the annual budget and is responsible for managing the SmartZone. The SmartZone was created
in order to eliminate the conditions of unemployment, underemployment and joblessness, and to promote
economic growth in the City. The SmartZone's Board of Commissioners consists of seven members, three
of which are appointed by the City of Lansing, three are appointed by the City of East Lansing, and one is
appointed by the Ingham County Board of Commissioners.
60
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Component Unit Financial Statements
Complete financial statements for the individual component units may be obtained from each entity's
administrative offices. Separate financial statements are not prepared for the Smart Zone.
City of Lansing Building Authority
8th Floor
124 West Michigan Avenue
Lansing, Michigan 48933
Brownfield Redevelopment Authority / Tax Increment Finance Authority
500 E. Michigan Avenue, Suite 202
Lansing, Michigan 48912
Lansing Entertainment and Public Facilities Authority
333 East Michigan Avenue
Lansing, Michigan 48933
Government-Wide and Fund Financial Statements
The statements of net assets and activities display information about the primary government (the City)
and its component units. These statements include the financial activities of the overall government,
except for fiduciary activities. Eliminations have been made to minimize the double-counting of internal
activities. These statements distinguish between the City's governmental and business-type activities.
Governmental activities generally are financed through taxes, intergovernmental revenues and other
nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to
external parties.
The statement of activities presents a comparison between direct expenses and program revenues for the
different business-type activities of the City and for each function of the City's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are
clearly identifiable to a particular function. Indirect expense allocations that have been made in the
funds have been reversed for the statement of activities. Program revenues include (a) fees, fines and
charges paid by the recipients of goods or services offered by the programs and (b) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
program. Revenues that are not classified as program revenues, including all taxes, are presented as
general revenues.
Measurement Focus Basis of Accounting, and Financial Statement Presentation
The fund financial statements provide information about the City's funds, including its fiduciary funds and
blended component unit. Separate statements for each fund category - governmental, proprietary and
fiduciary - are presented. The emphasis of fund financial statements is on major governmental and
enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds
are aggregated and reported as nonmajor funds.
61
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The City reports the following major governmental funds:
General fund. This fund is the City's primary operating fund. It accounts and reports all financial
resources not accounted for and reported in another fund.
State and Federal Programs fund. This fund accounts for all revenues received from miscellaneous
grants and local contributions. These revenues are used for projects as detailed in individual grant
applications.
The City reports the following major enterprise funds:
Sewage Disposal System Fund. This fund accounts for the provision of sewage disposal services to the
residents of the City.
Municipal Parking System Fund. This fund accounts for the operation of City-owned parking facilities.
Additionally, the City reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources
that are restricted or committed to expenditure for specified purposes other than debt service or
capital projects that comprise, or are expected to comprise a substantial portion of the fund's total
reported inflows.
Debt service funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal, interest and related costs.
Capital projects funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
The permanent fund accounts for resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support the government's programs.
Enterprise funds account for those operations that are financed and operated in a manner similar to
private business or where the City has decided that the determination of revenues earned, costs
incurred and/or net income is necessary for management accountability.
Internal service funds account for operations that provide services to other departments or agencies
of the City, or to other governments, on a cost-reimbursement basis. This includes operating a
maintenance facility for trucks and equipment used by the Public Service Department, and health care
self-insurance services.
Pension and other postemployment benefit trust funds account for the accumulation of resources to
be used for retirement annuity payments to eligible full-time employees of the City, certain
healthcare costs, and other retirement distributions.
The agency fund account for resources held in a trustee or agent capacity for the 54-A District Court.
62
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Government-wide, proprietary and fiduciary fund financial statements. The government-wide,
proprietary and fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Agency funds, a type of fiduciary fund, are
unlike all other types of funds, reporting only assets and liabilities. Therefore, agency funds cannot be
said to have a measurement focus. They do, however, use the accrual basis of accounting to recognize
receivables and payables. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Property taxes are recognized as revenues in the year for which they are levied. After March 1, any
delinquent taxes on real property are paid by the county which is responsible for collecting any
outstanding taxes on real property as of that date. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider have been met.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or ancillary activities.
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 enterprise and internal service funds are charges to customers for sales and services.
Operating expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or
giving) equal value in exchange, include property taxes, grants, entitlements and donations. On an
accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.
Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Governmental fund financial statements. Governmental funds are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under this method, revenues
are recognized when 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.
The City considers all revenues reported in the governmental funds to be available if they are collected
within three months after year-end, except for income taxes that use a 45-day collection period, property
taxes that use a 60-day collection period, and reimbursement-based grants that use one year. Property
taxes, income taxes, franchise taxes, licenses and interest are considered to be susceptible to accrual. All
other revenue items are considered to be measurable and available only when cash is received by the
City.
Expenditures are recorded when the related fund liability is incurred, except for principal and interest on
general long-term debt, compensated absences, and claims and judgments, which are recognized as
expenditures to the extent they have matured. General capital asset acquisitions are reported as
expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital
leases, if any, are reported as other financing sources.
63
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Under the terms of grant agreements, the City funds certain programs by a combination of specific cost-
reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are
incurred, there are both restricted and unrestricted net assets available to finance the program. It is the
City's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical
block grants, and then by general revenues, subject to satisfying any grant program matching provisions.
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 and various other functions of
the government. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Assets, liabilities and net assets/equity
Deposits and investments
The City maintains an investment pool for all City funds. Each fund's portion of the investment pool is
displayed on the statement of net assets/balance sheet as "equity in pooled cash." The City's cash and
cash equivalents are considered to be cash on hand, demand deposits and short-term investments with
original maturities of three months or less from the date of acquisition.
Restricted cash consists of amounts required to be maintained separately in accordance with bond
covenants.
State statutes authorize the government to deposit in the accounts of federally insured banks, credit
unions, and savings and loan associations, and to invest in obligations of the U.S. Treasury, certain
commercial paper, repurchase agreements, bankers' acceptances, and mutual funds composed of
otherwise legal investments.
Investments are stated at fair value. Short-term investments are reported at cost, which approximates
fair value. Securities traded on a national or international exchange are valued at the last reported sales
price at current exchange rates. Mortgages are valued on the basis of future principal and interest
payments, and are discounted at prevailing interest rates for similar instruments. Investments that do not
have established market values are reported at estimated fair value. Cash deposits are reported at
carrying amounts, which reasonably approximates fair value.
Unrealized appreciation or depreciation on pension and other postemployment benefit trust fund
investments due to changes in fair value are recognized each year.
Receivables and payables
All trade and delinquent property tax receivables are shown net of an allowance for uncollectibles, as
applicable.
Certain notes receivable in governmental funds consist of rehabilitation and redevelopment loans that are
generally not expected or scheduled to be collected in the subsequent year.
Certain restricted receivables in business type funds are for an external agreement related to the
effective sale of land.
64
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as either interfund receivables/payables (i.e., the current portion of
interfund loans) or advances to/from other funds (i.e., the non-current portion of interfund loans). All
other outstanding balances between funds are reported as due to/from other funds. Any residual balances
outstanding between the governmental and business-type activities are reported in the government-wide
financial statements as internal balances.
Inventories, prepaids and other assets
All inventories are valued at cost using the first-in/first-out method. Inventories of governmental funds
are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements.
Costs related to the issuance of long-term debt are amortized over the term of the related debt on a
straight-line basis.
Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items acquired or constructed since June 30, 1980), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. Capital
assets that are used for governmental activities are only reported in the government-wide statements.
Infrastructure ("public domain") assets, including roads, bridges, sanitary sewers, drains, curbs, and
gutters are capitalized. With this measurement focus, all assets and liabilities (whether current or
noncurrent) associated with the operations of these funds are included on the government-wide
statement of net assets.
All land and non-depreciable land improvements are capitalized, regardless of cost. Equipment and
vehicles are capitalized when the cost of individual items exceed $5,000. The road and sewer networks
are all capitalized regardless of cost. Buildings are capitalized over $100,000, and the recreational
facilities' thresholds range from $25,000 to $50,000.
Capital assets of the primary government are depreciated using the straight-line method over the
following estimated useful lives:
Years
Buildings 20-50
Improvements 8-50
Equipment 3-15
Sanitary sewers 50
Infrastructure 10-75
65
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Compensated absences
It is the government's policy to permit employees to accumulate earned but unused vacation and
compensatory time benefits, subject to certain limitations. Certain bargaining unit employees are also
permitted to accumulate earned but unused sick leave. All vacation and compensatory time pay and 50
percent of sick leave are accrued when incurred in the government-wide 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 or retirements.
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 assets. Bond
premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds
using the straight-line basis. Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
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
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they
are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance is reported when externally imposed constraints are placed on the use of
resources by grantors, contributors, or laws or regulations of other governments. Committed fund
balance is reported for amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the government's highest level of decision-making authority, the City
Council. A formal resolution of the City Council is required to establish, modify, or rescind a fund balance
commitment. The City reports assigned fund balance for amounts that are constrained by the
government's intent to be used for specific purposes, but are neither restricted nor committed. The City
currently has no assigned fund balance, as the City Council has not yet given the authority for the making
of such assignments. Unassigned fund balance is the residual classification for the general fund.
When the City incurs an expenditure for purposes for which various fund balance classifications can be
used, it is the government's policy to use restricted fund balance first, then committed fund balance,
assigned fund balance, and finally unassigned fund balance.
66
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
2. BUDGETARY INFORMATION
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
On or before the fourth Monday in March, the Mayor submits to the City Council a proposed operating
budget for the fiscal year commencing the following July 1. The operating budget includes proposed
expenditures and the means of financing them.
A public hearing on the proposed use of funds is held by the Mayor, and a public hearing on the annual
appropriations as proposed by the City Council is held no later than one week prior to adoption of the
annual appropriation measure.
Not later than the third Monday in May, the Council adopts a budget for the ensuing fiscal year, makes an
appropriation of the money needed therefore, and sets the property tax rate necessary to support the
appropriations measure.
The appropriated budget is prepared by fund, department and the mandatory expenditure accounts as
established by the State of Michigan's Uniform Chart of Accounts except for the state and federal
programs special revenue fund which is adopted on a project basis. The legal level of budgetary control
is the activity level. The mandatory accounts are personal services, supplies and operating expense,
capital outlay, debt service, transfers and contingency. Transfers of appropriations between the
mandatory accounts require the approval of the City Council. However, the Mayor may authorize budget
transfers between mandatory accounts in a department, but the additional amount may not exceed
fifteen (15%) of the Council's appropriation being added to, or five thousand dollars, whichever is less.
Copies of the City's separately issued Budget report may be obtained from the Finance Department, 124 West
Michigan Avenue, Lansing, Michigan 48933.
The City formally adopts operating budgets for the general fund and all special revenue funds.
Budgetary integration is employed as a management control device during the year for all budgeted
funds. Except for the general fund, these budgets are adopted on a basis consistent with generally
accepted accounting principles ("GAAP"). In the general fund, capital lease payments / installment
payments are budgeted, but capital lease acquisitions are not. There were no capital lease acquisitions
during the year ended June 30, 2012.
Appropriations lapse at year-end for all annual budgets. Appropriations are automatically carried forward
for project-type budgets.
P.A. 621 of 1978, as amended, provides that a local unit shall not incur expenditures in excess of the amount
appropriated. During the year ended June 30, 2012, the City incurred expenditures in certain budgetary funds
which were in excess of the amounts appropriated, as follows:
Total Amount of Budget
Appropriations Expenditures Variance
General fund:
General government:
Attorney's office $ 1,239,663 $ 1,253,205 $ 13,542
Library rental 155,000 161,030 6,030
Recreation and culture 6,877,368 6,996,074 118,706
Building department:
General government 1,928,569 1,949,109 20,540
Tri-County Metro:
Public safety 911,036 1,156,805 245,769
67
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
3. DEFICIT FUND EQUITY
Governmental activities reported a deficit in unrestricted net assets in the amount of$34,371,855 at June
30, 2012. Total net assets amounted to a positive $143,875,978.
The drug law enforcement special revenue fund reported a deficit fund balance of $74,746. This deficit
will be eliminated in future periods through normal operations.
The special assessments capital projects fund reported a deficit fund balance of $469,028. The fund
received a long-term advance from the general fund that was used to provide the working capital for the
fund in prior years. The deficit is the result of deferred special assessments receivable. As special
assessments are collected, this deficit will be eliminated, and the advance repaid.
The Brownfield Redevelopment Authority and the Tax Increment Finance Authority reported deficits in
unrestricted net assets of $76,518 and $34,068,739, respectively, at June 30, 2012. These deficits are a
result of full-accrual accounting for long-term debt, without reflect a corresponding receivable for tax
captures to be received in future periods (which cannot be accrued in accordance with generally
accepted accounting principles).
4. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances for the primary government (including
both pooled cash and investments as well as pension and other postemployment benefit (OPEB) trust fund
balances) as of June 30, 2012:
Primary Component
Government Units Totals
Statement of net assets
Cash and investments $ 27,867,820 $ 2,379,511 $ 30,247,331
Restricted cash and investments 16,431,271 1,919,523 18,350,794
Statement of fiduciary net assets
Pension and OPEB trust funds:
Cash and cash equivalents 7,994,961 - 7,994,961
Investments 459,859,715 459,859,715
Agency funds:
Equity in pooled cash 59,163 59,163
Total $ 512,212,930 $ 4,299,034 $ 516,511,964
68
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Deposits and investments
Bank deposits:
Checking/savings accounts $ 55,333,214
Investment in securities and mutual funds:
Pooled investments 1,224,176
Pension and OPEB investments 459,859,715
Cash on hand 94,859
Total $ 516,511,964
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the event of a bank failure, the
City's deposits may not be returned. State law does not require and the City does not have a policy for
deposit custodial credit risk. As of year-end, $55,643,424 of the City's bank balance of $56,663,611 was
exposed to custodial credit risk because it was uninsured and uncollateralized.
The City's investment policy does not specifically address this risk, although the City believes that due to
the dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to insure all bank
deposits. As a result, the City evaluates each financial institution with which it deposits City funds and
assesses the level of risk of each institution; only those institutions with an acceptable estimated risk
level are used as depositories.
Custodial Credit Risk - Investments. As of June 30, 2012, the City's pooled investments consisted entirely
of mutual funds totaling $1,224,176.
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty,
the City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. State law does not require and the City does not have a policy for
investment custodial credit risk. On the investments listed above, there is no custodial credit risk, as
these investments are uncategorized as to credit risk.
Credit Risk. State law limits investments to specific government securities, certificates of deposit and
bank accounts with qualified financial institutions, commercial paper with specific maximum maturities
and ratings when purchased, bankers acceptances of specific financial institutions, qualified mutual funds
and qualified external investment pools as identified in the list of authorized investments in the summary
of significant accounting policies. The City's investment policy does not have specific limits in excess of
state law on investment credit risk. Credit risk ratings, where applicable, are summarized as follows:
SEW AAAm $ 1,001
Unrated 1,223,175
Total $ 1,224,176
69
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Interest Rate Risk. State law limits the allowable investments and the maturities of some of the
allowable investments as identified in the summary of significant accounting policies. The City's
investment policy does not have specific limits in excess of state law on investment maturities as a means
of managing its exposure to fair value losses arising from increasing interest rates. Maturity dates for
investments held at year-end are summarized as follows:
Due in 1 to 5 years $ 1,223,175
No maturity 1,001
Total $ 1,224,176
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude
of the City's investment in a single issuer. State law limits allowable investments but does not limit
concentration of credit risk as identified in the list of authorized investments in the summary of
significant accounting policies. The City's investment policy does not have specific limits in excess of
state law on concentration of credit risk. All investments held at year end are reported above.
Pension and Other Postemployment Benefit Trust Funds
The deposits and investments of the City's pension and other postemployment benefit trust funds are
maintained separately from the City's pooled cash and investments, and are subject to separate
investment policies and State statutes. Accordingly, the required disclosures for the pension and OPEB
deposits and investments are presented separately.
Deposits
The pension and OPEB trust funds do not maintain any checking or other demand/time deposit accounts.
Amounts reported as cash and cash equivalents in the statement of plan net assets are composed entirely
of short-term investments in money market accounts.
Investments
The Michigan Public Employees Retirement Systems' Investment Act, Public Act 314 of 1965, as amended,
authorizes the pension trust funds to invest in stocks, government and corporate securities, mortgages,
real estate, and various other investment instruments, subject to certain limitations. The retirement
boards have the responsibility and authority to oversee the investment portfolio. Various professional
investment managers are contracted to assist in managing the pension trust funds' assets. All investment
decisions are subject to Michigan law and the investment policy established by the retirement boards.
70
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The investments of each pension trust fund are held in a bank administered trust fund. Following is a
summary of pension and other postemployment benefits investments as of June 30, 2012:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
Investments at fair value,
as determined by quoted
market price
U.S. treasuries:
Not on securities loan $ 2,030,272 $ 4,618,950 $ $ $ 6,649,222
On securities loan 2,426,586 1,695,698 4,122,284
U.S. agencies:
Not on securities loan 21,631,066 24,591,463 46,222,529
On securities loan 16,418 1,738,432 1,754,850
Foreign government
bonds:
Not on securities
loan 156,758 335,910 492,668
Domestic corporate
securities:
Not on securities
loan 27,167,545 36,151,525 63,319,070
Domestic equities:
Not on securities loan 32,387,224 53,273,657 85,660,881
On securities loan 15,937,485 19,392,413 35,329,898
International equities:
Not on securities loan 206,464 307,195 513,659
Real estate investment
funds 9,889,066 11,988,944 21,878,010
Equity mutual funds - 6,625,598 - 6,625,598
International equity
mutual funds 33,875,917 51,860,230 - 411,435 86,147,582
Domestic equity
mutual funds 29,859,466 47,958,773 1,677,938 6,798,192 86,294,369
Domestic debt securities
mutual funds - - - 6,187,343 6,187,343
Money market funds 1,764,550 6,282,202 - 615,000 8,661,752
Total investments $ 177,348,817 $ 266,820,990 $ 1,677,938 $ 14,011,970 $ 459,859,715
71
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Credit Risk. The City's pension investment policies provide that at least 90% of its investments in fixed
income securities be rated BBB- or better by a nationally recognized statistical rating organization and
the remaining 10% be rated at least B- or better. The City's pension and other postemployment benefits
investments were rated by Standard Et Poor's as follows:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
AA $ 1,410,158 $ 2,363,670 $ $ $ 3,773,828
Not rated 27,143,962 41,361,287 68,505,249
Assets not subject
to credit risk 148,794,697 223,096,033 1,677,938 14,011,970 387,580,638
$ 177,348,817 $ 266,820,990 $ 1,677,938 $ 14,011,970 $ 459,859,715
Custodial Credit Risk. For investments, custodial credit risk is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City's pension investment policies require that
investment securities be held in trust by a third-party institution in the name of the pension trust fund.
As such, although uninsured and unregistered, the City's pension investments are not exposed to custodial
credit risk since the securities are held by the counterparty's trust department in the name of the
pension trust fund. Short-term investments in money market funds and open-end mutual funds are not
exposed to custodial credit risk because their existence is not evidenced by securities that exist in
physical or book form.
Concentration of Credit Risk. At June 30, 2012, the pension and other postemployment benefits
investment portfolio was concentrated as follows:
Employees' Police and Fire
Retirement Retirement
Investment Type Issuer System System
Common stock Northern Trust Back, N.A. 16.8% 18.0%
Corporate bonds Western Asset Funds, Inc. 15.3% 13.5%
U.S. agencies Federal National Mortgage Association 6.0% 5.0%
The City's pension and other postemployment benefits investment policies require diversification of fixed
income securities; however, they do not specify percentages of dollar amounts by industry or issuer.
72
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Foreign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely
affect the fair value of an investment or deposit. The pension and other postemployment benefits trusts'
exposure to foreign currency risk is as follows:
Employees' Police and Fire Retiree
Investment Retirement Retirement Health Care
(currency in U.S. dollar) System System VEBA Totals
International equities:
Canada $ 186,628 $ 277,441 $ $ 464,069
Israel 19,836 29,754 49,590
Foreign government bonds:
Egypt 1561758 335,910 492,668
International equity mutual funds 33,875,917 51,860,230 411,435 86,147,582
Total $ 34,239,139 $ 52,503,335 $ 411,435 $ 87,153,909
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the
fair market value of an investment. The City's pension investment policies provide that the average
duration of fixed income securities shall not deviate from the Lehman Brothers Aggregate Index duration
by +/-20%. As of June 30, 2012, maturities of the City's pension and other postemployment benefits trust
debt securities were as follows:
Investment Maturities (Fair Value)
Less than More than
1 year 1-5 years 6-10 years 10 years Total
Employees' Retirement
System
U.S. treasuries $ $ $ - $ 4,456,858 $ 4,456,858
U.S. agencies 1,516 2,926,990 4,163,818 14,555,160 21,647,484
International government
bonds - 156,758 - - 156,758
Domestic corporate -
securities 27,167,545 - - - 27,167,545
Total $ 27,169,061 $ 3,083,748 $ 4,163,818 $ 19,012,018 $ 53,428,645
Police and Fire Retirement
System
U.S. treasuries $ - $ $ 642,158 $ 5,672,490 $ 6,314,648
U.S. agencies 2,640 3,661,036 5,474,739 17,191,480 26,329,895
International government
bonds - 335,910 - - 335,910
Domestic corporate
securities 35,931,385 220,140 - - 36,151,525
Total $ 35,934,025 $ 4,217,086 $ 6,116,897 $ 22,863,970 $ 69,131,978
73
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Securities Lending. Under contracts approved by the City, the pension and other postemployment
benefits trust funds are permitted to lend their securities to broker-dealers and banks (borrowers) for
collateral that will be returned for the same securities in the future. The pension trust and other
postemployment benefits funds' custodial banks manage the securities lending programs and receive cash
as collateral. Collateral cash is initially pledged at 100 percent of the fair value of the securities lent,
and may not fall below 95 percent of the market value of the loaned security during the term of the loan.
At all times, collateral cannot be more than $100,000 less than the market value of the loaned security.
There are no restrictions on the amount of securities that can be loaned.
Securities on loan at year-end are classified in the preceding schedule of custodial credit risk according to
the category for the collateral received on the securities lent. At year-end, the pension trust funds have
no credit risk exposure to borrowers because the collateral held by the custodians exceeds the market
value of the related securities lent. At June 30, 2012, the fair value of securities on loan by the
Employees' Retirement System and the Police and Fire Retirement System were $18,350,567 and
$22,826,542, respectively, for which the Plans' received cash collateral of $18,521,263 and $22,994,803,
respectively. The contract with the pension and other postemployment benefits trust fund custodians
require them to indemnify the City if the borrowers fail to return the securities (and if the collateral is
inadequate to replace the securities lent) or fail to pay the City for income distributions by the securities'
issuers while the securities are on loan.
5. RECEIVABLES
Receivables are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts receivable $ 18,782,495 $ 7,010,438 $ 408,646
Taxes receivable 463,964 - -
Special assessments receivable 690,559 - -
Loansreceivable 1,436,170 694,152 400,000
Accrued interest receivable 2,009,367 97,077 -
Due from other governments 13,949,537 - 324,361
Lease receivable - 24,305,656 -
Allowance for uncollectible accounts (807,665) (846,647) -
$ 36,524,427 $ 31,260,676 $ 1,133,007
Amount not expected to be
collected within one year $ 4,010,024 $ 22,686,892 $ 400,000
74
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
6. DEFERRED REVENUE
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. All governmental activities defer
revenue recognition in connection with resources that have been received, but not earned. At the end of
the current fiscal year, the various components of deferred revenue reported in governmental funds were
as follows:
Unavailable Unearned Total
Governmental funds
Ambulance fees receivable $ 1,377,592 $ $ 1,377,592
Nuisance fees receivable 689,379 689,379
Loans receivable 1,236,170 1,236,170
Interest on loans receivable 2,009,367 2,009,367
Special assessments receivable 615,657 615,657
Tax settlement receivable 114,137 114,137
Grant funds received in advance - 721,164 721,164
Total $ 6,042,302 $ 721,164 $ 6,763,466
7. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2012 was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land $ 24,776,106 $ 321,407 $ (12,530) $ - $ 25,084,983
Construction in progress 8,755,853 331,006 (1,674,393) (7,081,460) 331,006
33,531,959 652,413 (1,686,923) (7,081,460) 25,415,989
Capital assets, being depreciated:
Land improvements 13,447,951 - 2,403,028 15,850,979
Equipment and vehicles 44,063,772 743,633 (1,996,394) - 42,811,011
Buildings 113,723,204 - 4,678,432 118,401,636
Infrastructure 302,437,062 2,548,712 (4,671,284) - 300,314,490
473,671,989 3,292,345 (6,667,678) 7,081,460 477,378,116
Less accumulated depreciation for:
Land improvements (6,369,244) (505,472) - (6,874,716)
Equipment and vehicles (36,247,104) (2,161,154) 1,996,394 (36,411,864)
Buildings (60,781,934) (3,315,574) (64,097,508)
Infrastructure (187,564,643) (14,732,048) 4,140,767 (198,155,924)
(290,962,925) (20,714,248) 6,137,161 - (305,540,012)
Total capital assets
being depreciated, net 182,709,064 (17,421,903) (530,517) 7,081,460 171,838,104
Governmental activities
capital assets, net $ 216,241,023 $ (16,769,490) $ (2,217,440) $ - $ 197,254,093
75
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
At June 30, 2012, the City's governmental activities had outstanding commitments through construction
contracts of approximately $2,267,000.
Beginning Ending
Balance Additions Disposals Transfers Balance
Business-type activities
Capital assets, not being depreciated:
Land $ 13,730,508 $ 33,015 $ (260,202) $ - $ 13,503,321
Construction in progress 41,019,361 8,397,624 (550,004) 48,866,981
54,749,869 8,430,639 (260,202) (550,004) 62,370,302
Capital assets, being depreciated:
Land improvements 23,595,072 210,193 (48,515) 463,182 24,219,932
Equipment and vehicles 5,657,510 87,840 (71,794) - 5,673,556
Buildings 200,794,433 1,317,844 (1,160,738) - 200,951,539
Sewers 301,301,963 393,311 86,822 301,782,096
531,348,978 2,009,188 (1,281,047) 550,004 532,627,123
Less accumulated depreciation for:
Land improvements (10,911,672) (584,859) 30,714 - (11,465,817)
Equipment and vehicles (5,056,935) (214,516) 71,794 (5,199,657)
Buildings (100,608,970) (4,635,292) 105,164 (105,139,098)
Sewers (61,874,879) (6,169,698) (68,044,577)
(178,452,456) (11,604,365) 207,672 (189,849,149)
Total capital assets
being depreciated, net 352,896,522 (9,595,177) (1,073,375) 550,004 342,777,974
Business-type activities
capital assets, net $ 407,646,391 $ (1,164,538) $ (1,333,577) $ - $ 405,148,276
At June 30, 2012, the City's business-type activities had outstanding commitments through construction
contracts of approximately $4,074,000.
Depreciation expense was charged to functions/programs of the primary government as follows:
Depreciation of governmental activities by function
General government $ 470,267
Public safety 548,052
Public works 14,743,433
Recreation and culture 1,617,963
Community development 1,713,903
Internal service funds 1,620,630
Total depreciation expense - governmental activities $ 20,714,248
76
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Depreciation of business-type activities by function
Sewage disposal system $ 9,282,577
Municipal parking system 2,189,756
Golf 93,294
Other 38,738
Total depreciation expense - business-type activities $ 11,604,365
8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts payable $ 7,292,146 $ 1,343,513 $ 1,349,157
Deposits payable 80,734 41,615 -
Accrued payroll 1,728,003 80,930
Contract retainage payable 1,118,078 200
Due to other governments 1,774,117 -
Other 1,270,092 - -
$ 13,263,170 $ 1,466,258 $ 1,349,157
9. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2012, was as follows:
Due to and from primary government funds
Due from Due to Other
Other Funds Funds
General fund $ 9,619,879 $ 22,754,942
State and federal programs - 4,270,000
Nonmajor governmental funds 3,034,151 1,935,988
Sewage disposal system 19,029,452 6,932,216
Municipal parking system 5,109,420 -
Nonmajor enterprise funds - 300,000
Internal service funds - 599,756
Total $ 36,792,902 $ 36,792,902
The above balances generally resulted from a time lag between the dates that interfund goods and
services are provided or reimbursable expenditures occur, transactions are recorded in the accounting
system, and payments between funds are made.
77
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Advances to and from primary government funds
Advances to Advances from
Other Funds Other Funds
Nonmajor governmental funds $ - $ 527,815
Municipal parking system 527,815 -
Total $ 527,815 $ 527,815
Due to and from component units
Due from Due to
Primary Component
Government Unit
General fund $ - $ 1,038,819
Brownfield Redevelopment Authority 294,100 -
Tax Increment Finance Authority 742,107
Smart Zone 2,612 -
Total $ 1,038,819 $ 1,038,819
For the year ended June 30, 2012, interfund transfers consisted of the following:
Transfers In
State and Nonmajor Nonmajor
federal governmental enterprise
Transfers Out General fund programs funds funds Total
General fund $ - $ 246,451 $ 2,804,088 $ 173,058 $ 3,223,597
Nonmajor govern-
mental funds 48,000 73,419 4,405,005 607,866 5,134,290
Sewage disposal
system 300,000 - - - 300,000
Nonmajor enterprise
funds - 16,916 - 16,916
Total $ 348,000 $ 319,870 $ 7,226,009 $ 780,924 $ 8,674,803
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them; (2) move receipts restricted to or allowed for debt service from the
funds collecting the receipts to the debt service fund as debt service payments become due; and (3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations.
78
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
10. LONG-TERM DEBT
General obligation bonds. The government issues general obligation bonds to provide funds for the
acquisition and construction of major capital facilities. General obligation bonds are direct obligations
and pledge the full faith and credit of the government. These bonds are issued as 10 to 30-year serial
bonds with varying amounts of principal maturing each year. General obligation bonds currently
outstanding are as follows:
Interest Original
Rate Amount Amount
General obligation bonds
Governmental activities:
2006 Lansing Center Limited Tax Bonds 3.50-4.30% $ 4,000,000 $ 2,800,000
2005 Building Authority Refunding Bonds 3.50-5.00% 1,470,000 880,000
2007 Michigan Transportation Fund Limited Tax Bonds 3.625-5.00% 1,137,600 630,000
2007 Michigan Transportation Fund Limited Tax Bonds 3.625-5.00% 3,602,400 1,995,000
2007 Fire Station Refunding Bonds 3.625-5.00% 1,780,000 1,385,000
2008 Michigan Transportation Fund Limited Tax Bonds 3.00-4.00% 3,500,000 2,750,000
2009 Capital Improvement Bonds - Limited Tax General 3.15-6.85% 10,197,000 9,927,000
2010 Recovery Zone Economic Development Bonds 3.40-7.25% 3,200,000 3,200,000
2010 Refunding Bonds - Limited Tax General Obligation 2.60-2.65% 2,470,000 2,160,000
$ 31,357,000 $ 25,727,000
Business-type activities:
1990 Building Authority Municipal Parking System
Limited Taxable Bond 0.00% $ 64,635,000 $ 7,845,000
2003 Building Authority A Municipal Parking System
Limited Taxable Bond 3.00-4.35% 10,340,000 1,050,000
2003 Building Authority B Municipal Parking System
Taxable Bond 3.85-6.25% 8,660,000 7,100,000
2005 Building Authority Refunding Bonds 3.50-5.00% 15,975,000 10,655,000
2007 Building Authority Refunding Bonds 3.625-5.00% 7,965,000 7,835,000
1996 Building Authority Golf Course Limited Tax Bond 3.80-5.70% 1,300,000 475,000
1992 Limited Tax Sewer Bond - 5005-01 2.50% 7,128,800 845,000
1993 Limited Tax Sewer Bond - 5005-02 2.50% 8,150,050 1,380,000
1994 Limited Tax Sewer Bond - 5005-03 2.50% 3,234,722 725,000
1994 Limited Tax Sewer Bond - 5005-04 2.00% 3,727,138 532,138
1994 Limited Tax Sewer Bond - 5005-05 2.25% 515,969 35,000
1994 Limited Tax Sewer Bond - 5005-06 2.25% 7,595,611 1,320,000
1996 Limited Tax Sewer Bond - 5005-07 2.25% 3,365,073 965,073
1996 Limited Tax Sewer Bond - 5005-08 2.25% 3,995,000 1,390,000
1997 Limited Tax Sewer Bond - 5005-09 2.25% 4,746,780 1,866,780
1998 Limited Tax Sewer Bond - 5005-10 2.25% 10,539,950 4,704,950
1999 Limited Tax Sewer Bond - 5005-11 2.50% 10,120,000 4,665,000
2000 Limited Tax Sewer Bond - 5005-12 2.50% 9,447,830 4,767,830
2001 Limited Tax Sewer Bond - 5005-13 2.50% 10,573,046 5,883,046
2002 Limited Tax Sewer Bond - 5005-14 2.50% 12,381,131 7,996,131
2003 Limited Tax Sewer Bond - 5005-15 2.50% 10,259,826 7,125,688
2004 Limited Tax Sewer Bond - 5005-16 2.13% 3,070,277 2,802,649
79
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Interest Original
Rate Amount Amount
General obligation bonds
Business-type activities (concluded):
2005 Limited Tax Sewer Bond - 5005-17 2.13% $ 4,739,023 $ 5,773,778
2005 Limited Tax Sewer Bond - 5005-18 1.63% 13,389,371 10,169,371
2006 Limited Tax Sewer Bond - 5005-19 1.63% 18,216,346 14,916,346
2007 Limited Tax Sewer Bond - 5005-20 1.63% 24,244,726 20,864,726
2008 Limited Tax Sewer Bond - 5005-21 2.50% 27,500,453 25,200,453
2009 Limited Tax Sewer Bond - 5005-22 2.50% 15,615,000 13,176,527
2010 Limited Tax Sewer Bond - 5411-01 2.50% 2,095,468 2,095,468
2009 Capital Improvement Bonds 4.10-7.05% 9,803,000 9,803,000
2009 Building Authority Refunding Bonds 6.014-6.584% 8,161,691 8,161,691
$ 341,491,281 $ 192,125,645
At year end, defeased bonds outstanding consisted of $7,485,000 of the 2003 Building Authority Municipal
Parking System Limited Tax Bonds, scheduled to be paid by the escrow agent on June 1, 2013; $4,575,000
of 1990 Building Authority Bonds, scheduled to be paid by the escrow agent in installments on June 1 of
years 2013 through 2015; $10,415,000 of 1990 Tax Increment Finance Authority Bonds, scheduled to be
paid by the escrow agent in installments on May 1 of years 2016 through 2020.
Revenue bonds. The City also issues bonds where the income derived from the acquired or constructed
assets is pledged to pay debt service. Revenue bonds outstanding at year-end are as follows:
Interest Original
Rate Amount Amount
Revenue bonds - business type activities
2003 Sewer Revenue and Refunding Bond 2.50% $ 39,880,000 $ 27,725,000
2010 Sewage Disposal System Refunding Bond 1.76% 2,685,000 1,800,000
$ 42,565,000 $ 29,525,000
Installment purchase agreements. The government enters into installment purchase agreements for
equipment and related capital assets. Installment purchase agreements outstanding at year-end are as
follows:
Interest Original
Rate Amount Amount
Installment purchase agreements
Governmental activities:
2005 Lease Purchase Agreement - LEPFA Carpet 4.51% $ 126,418 $ 44,294
2005 Lease Purchase Agreement - LEPFA Equipment 4.24% 81,500 32,562
2001 Lease Purchase Agreement - OEM Facility 5.35% 1,925,000 610,000
2006 Lease Purchase Agreement - Energy Efficiencies 4.20% 6,217,227 5,727,485
2006 Lease Purchase Agreement - Oldsmobile Park 6.86% 2,000,000 1,000,000
2007 Lease Purchase Agreement - Oldsmobile Park 5.72% 1,000,000 500,000
2007 Lease Purchase Agreement - Phone System 4.22% 518,000 279,275
$ 11,868,145 $ 8,193,616
80
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Loans payable. The government has entered into loan agreements with the certain State agencies for
program purposes. Loans payable at year-end are as follows:
Interest Original
Rate Amount Amount
Loans payable
Governmental activities:
2004 Michigan Department of Transportation Loan 3.00% $ 1,266,000 $ 512,577
Business-type activities
2003 MEDC loan 3.93% $ 4,180,000 $ 1,637,177
Changes in long-term debt. Long-term liability activity for the year ended June 30, 2012, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
General obligation bonds $ 27,687,000 $ $ 1,960,000 $ 25,727,000 $ 2,145,000
Installment purchase
agreements 9,564,693 1,371,077 8,193,616 1,189,546
Loans payable 779,580 267,003 512,577 165,834
Total installment debt 38,031,273 3,598,080 34,433,193 3,500,380
Compensated absences 10,927,004 10,601,091 10,927,004 10,601,091 729,154
Accrued workers
compensation 6,861,277 1,454,736 1,184,775 7,131,238 1,184,775
Accrued tax settlement 260,805 - 52,161 208,644 52,161
Deferred amounts:
For issuance discounts (107,153) (6,833) (100,320) (5,178)
For issuance premiums 224,377 34,143 190,234 34,143
On refunding (108,104) - (13,666) (94,438) (13,666)
$ 56,089,479 $ 12,055,827 $ 15,775,664 $ 52,369,642 $ 5,481,769
81
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type activities
General obligation bonds $ 200,539,634 $ 5,736,011 $ 14,150,000 $ 192,125,645 $ 14,769,038
Revenue bonds 32,565,000 - 3,040,000 29,525,000 3,160,000
Loans payable 1,574,209 62,968 - 1,637,177 517,069
Total installment debt 234,678,843 5,798,979 17,190,000 223,287,822 18,446,107
Compensated absences 688,271 821,553 688,271 821,553 70,846
Deferred amounts:
For issuance discounts (3,856,515) - (981,895) (2,874,620) -
For issuance premiums 961,874 66,058 895,816
On refunding (1,678,019) - (335,553) (1,342,466) -
$ 230,794,454 $ 6,620,532 $ 16,626,881 $ 220,788,105 $ 18,516,953
For the governmental activities, compensated absences and other long-term debt are generally liquidated
by the general fund.
Debt service requirements to maturity for all installment debt of the City are as follows:
Year Governmental Activities Business-type Activities
Ending
June 30 Principal Interest Total Principal Interest Total
2013 $ 3,500,380 $ 1,497,263 $ 4,997,643 $ 18,446,107 $ 6,202,551 $ 24,648,658
2014 3,635,354 1,343,629 4,978,983 18,721,746 5,772,386 24,494,132
2015 3,030,852 1,181,105 4,211,957 16,561,855 5,315,899 21,877,754
2016 2,976,841 1,066,776 4,043,617 14,150,193 4,917,312 19,067,505
2017 2,991,313 947,027 3,938,340 13,829,597 4,521,088 18,350,685
2018-2022 11,088,453 3,139,260 14,227,713 69,841,537 16,639,186 86,480,723
2023-2027 4,770,000 1,357,617 6,127,617 53,258,736 7,311,076 60,569,812
2028-2032 2,440,000 218,124 2,658,124 16,948,051 1,306,435 18,254,486
2033-2034 - - - 1,530,000 106,085 1,636,085
$ 34,433,193 $ 10,750,801 $ 45,183,994 $ 223,287,822 $ 52,092,018 $ 275,379,840
82
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
11. FUND BALANCES - GOVERNMENTAL FUNDS
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, the City classifies fund balances based primarily on the extent to which it is bound to
observe constraints imposed upon the use of the resources reported in governmental funds. Detailed
information on fund balances of governmental funds is as follows:
State and Nonmajor
General Federal Governmental
Fund Programs Funds Totals
Nonspendable:
Inventories $ 46,418 $ $ 1,168,711 $ 1,215,129
Prepaids 46,120 - 46,120
Corpus of permanent fund - 1,683,293 1,683,293
Total nonspendable 92,538 2,852,004 2,944,542
Restricted for:
Donations 16,256 - 16,256
Major and local streets - 3,923,799 3,923,799
Drug law and narcotics
enforcement 708,797 708,797
Various state and federal grants 14,734 - 14,734
Shopping district events
and maintenance - 21,266 21,266
Capital improvements (unexpended
bond proceeds) - - 897,825 897,825
Total restricted 16,256 14,734 5,551,687 5,582,677
Committed for:
Ordinance 65,373 - - 65,373
City parks - 467,123 467,123
Capital improvements - 3,642,008 3,642,008
Total committed 65,373 4,109,131 4,174,504
Unassigned (deficit) 5,198,032 - (543,774) 4,654,258
Total fund balances-
governmental funds $ 5,372,199 $ 14,734 $ 11,969,048 $ 17,355,981
83
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
12. NET ASSETS INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
The composition of net assets invested in capital assets, net of related debt as of June 30, 2012, was as
follows:
Governmental Business-type Component
Activities Activities Units
Capital assets:
Capital assets not being depreciated $ 25,415,989 $ 62,370,302 $ -
Capital assets being depreciated, net 171,838,104 342,777,974 64,786
Total capital assets 197,254,093 405,148,276 64,786
Related debt:
General obligation bonds 25,727,000 192,125,645 415,000
Revenue bonds - 29,525,000 14,453,339
Installment purchase agreements 8,193,616 - 12,740,311
Loans payable 512,577 1,637,177 667,929
Unamortized bond discounts (100,320) (2,874,620) (114,735)
Unamortized bond premiums 190,234 895,816
Deferred loss on bond refunding (94,438) (1,342,466) (5,138,344)
Amounts under leases receivable (24,305,656)
Amounts under leases receivable - accrued interest (97,077)
Amounts related to non-capital debt (23,018,159)
Unexpended bond proceeds (897,825) -
Totalrelated debt 33,530,844 195,563,819 5,341
Net assets invested in capital assets,
net of related debt $ 163,723,249 $ 209,584,457 $ 59,445
13. SEGMENT INFORMATION - ENTERPRISE FUNDS
The government issued revenue bonds to finance certain improvements to its sewage disposal system.
Because the Sewage Disposal System, an individual fund that accounts entirely for the government's
sewage activities, is a segment and is reported as a major fund in the fund financial statements, separate
segment disclosures herein are not required.
14. RISK MANAGEMENT
The City of Lansing is exposed to various risks of loss related to property loss, torts, errors and omissions
and employee injuries.
The City carries commercial insurance for claims relating to general liability, property, electronic data
processing, boiler and machinery, police professional and errors and omissions. The City has not
experienced settlements in excess of insurance coverage during the past three years.
The City is uninsured for acts of nature and environmental clean-up costs.
84
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The City is self-funded for Blue Cross Blue Shield healthcare coverage for employees and retirees. The
City maintains stop/loss coverage that limits its per-case exposure to $250,000. The City estimates
amounts healthcare claims that are incurred but not reported as of year-end, which is accounted for in
the City's Fringe Benefits Internal Service Fund. Changes in the estimated liability were as follows:
Fiscal Year Ended June 30,
2012 2011
Estimated liability, beginning of year $ 1,402,760 $ 2,127,406
Estimated claims incurred,
including changes in estimates 12,051,055 18,550,824
Claim payments (12,556,292) (19,275,470)
Estimated liability,
June 30, 2012 $ 897,523 $ 1,402,760
The City is self-insured for workers' compensation costs. The City estimates the liability for workers'
compensation claims that have been incurred through the end of the fiscal year, including those claims
that have been reported as well as those that have not yet been reported to the City. The current
liability is accounted for in the general fund, with long term liabilities accounted for in the Statement of
Net Assets. The City has liability insurance coverage up to a maximum amount of $16,000,000 per
occurrence with a $350,000 deductible. Changes in the estimated long-term liability as well as the total
estimated cost of claims for the past two fiscal years were as follows:
Fiscal Year Ended June 30,
2012 2011
Estimated liability, beginning of year $ 6,861,277 $ 5,523,504
Estimated claims incurred,
including changes in estimates 1,454,736 2,656,055
Claim payments (1,184,775) (1,318,282)
Estimated liability,
June 30, 2012 $ 7,131,238 $ 6,861,277
15. PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of the date they are levied. City, community
college, and 50% of school taxes are levied and due July 1 and become delinquent after August 31.
County taxes and the balance of school taxes are levied and due December 1 and become delinquent
after February 14. In March, taxes on real property still delinquent are purchased by the County's tax
revolving funds. Collections of community college, school, and county taxes and remittances are
accounted for in the general fund. City property tax revenues are recognized in the fiscal year for which
the taxes are levied to the extent that they result in current receivables (i.e., are collected within 60
days after fiscal year-end).
85
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The City is permitted by charter and state law to levy taxes up to $19.198 per $1,000 of assessed
valuation for general operations other than the payment of principal and interest on long-term debt. The
tax rate to finance general governmental services other than the payment of principal and interest on
long-term debt for the year ended June 30, 2012 was $15.44 per $1,000 of taxable value.
16. CONTINGENT LIABILITIES
Amounts received or receivable from grantor agencies are subject to audit and potential 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 which may be disallowed by the grantor cannot be determined at this
time although the government expects such amounts, if any, to be immaterial.
The government is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the government's counsel that resolution of these matters will
not have a material adverse effect on the financial condition of the government.
17. PENSION PLANS
Employees'Retirement &1stem
The City sponsors and administers the Employees' Retirement System (the "Plan"), a single-employer,
defined-benefit pension plan. It is accounted for as a separate pension trust fund. No stand-alone
financial reports are issued. It covers general full-time employees of the City of Lansing and employees
of the 54-A District Court. It does not include elected officials, who are members of the Employees'
Money Purchase Pension Plan, nor does it include police officers and firefighters, who are members of a
separate City pension plan. The payroll for employees covered by the plan for the year ended December
31, 2011, was $26,068,735; the City's total payroll was $51,197,570. Administration of the plan is funded
through the general fund.
As of December 31, 2011, employee membership data was as follows:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 844
Active members:
Vested 361
Nonvested 120
481
86
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
All members may retire at age 50 with 25 or more years of credited service, or age 58 with 8 or more
years of credited service. Members are vested after completing 8 years of credited service. For all
members, annual regular retirement allowances are determined by multiplying total credited service
times 1.8% to 2.75% times final average compensation. Final average compensation is the member's
highest wages for two consecutive years during the last 10 years. Retirement options that provide for
survivor benefits are available to members. The plan also provides death and disability benefits. If a
member leaves employment or dies before vesting, accumulated member contributions plus interest are
refunded to the member or designated beneficiary. Members who are vested and terminate their
employment have the option of deferring retirement benefits until age 58 or withdrawing their
contribution, thereby forfeiting any future benefits.
Active members contribute between 5.5% and 6.5% of wages as determined by individual labor
agreements. Chapter 292 of the City of Lansing's Code of Ordinances establishes benefit provisions and
requires that the annuity and pension reserves (which are determined annually by the City's actuary) not
financed by member contributions shall be financed by annual appropriations.
The City's funding policy provides for periodic employer contributions at actuarially determined rates
that expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to
pay benefits when due. The normal cost and amortization payment for the year ended June 30, 2012,
was determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are
being amortized as a level percent of payroll over a closed period of 30 years.
Contributions are recognized when due pursuant to formal commitments, as well as statutory or
contractual requirements. The fund is accounted for in essentially the same manner as the proprietary
funds and uses the full accrual method of accounting.
Plan valuation assets are equal to the reported market value of assets except that only 20% of the
difference between the mark-to-market rate of return and the 7.8% actuarial rate of return is recognized
each year. This five year smoothing method reduces the fluctuation in the City's computed contribution
rate which might otherwise be caused by market value fluctuations. The entry-age actuarial cost method
is used to determine plan liabilities. Significant actuarial assumptions used in determining the entry-age
actuarial accrued liability include (a) a rate of return on investments of 7.8% per year compounded
annually (b) projected salary increases of 3.56% to 5.37% per year (including 3.3% attributable to
inflation) depending on age attributable to seniority/merit and (c) assumption that benefits generally will
not increase after retirement.
During the year ended June 30, 2012, total contributions of $8,988,280 were made in accordance with
actuarially determined requirements computed through an actuarial valuation performed as of December
31, 2010. The City contributed $7,523,535 (28.86% of projected valuation payroll), excluding contributions
for health insurance; employees contributed $1,464,745 (5.62% of projected valuation payroll). The City's
contribution consisted of (a) $1,955,155 normal cost (7.5% of projected valuation payroll) and (b)
$5,568,380 amortization of the unfunded actuarial accrued liability (21.36% of projected valuation
payroll).
87
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
At December 31, 2011, the unfunded actuarial accrued liability was determined as follows:
Actuarial accrued liability for:
Active participants (361 vested and 120 non-vested) $ 58,111,273
Retired participants and beneficiaries currently
receiving benefits (844 recipients) 207,928,773
Vested terminated participants not yet receiving benefits (67) 5,507,600
Member benefit reserve 15,759,061
Total actuarial accrued liability 287,306,707
Actuarial value of assets (smoothed market value) 177,100,863
Unfunded actuarial accrued liability $ 110,205,844
* Excluding reserve for health insurance
For the fiscal year ending June 30, 2012, the annual required contribution of $7,596,879 exceeded the
actual City contribution, resulting in a net pension obligation of $62,909.
Annual required contribution $ 7,596,879
Interest on net pension asset (814)
Adjustment to annual required contribution 557
Annual net pension cost 7,596,622
Contributions made (7,523,535)
Change in net pension obligation 73,087
Net pension asset, beginning of year (10,178)
Net pension obligation, end of year $ 62,909
The schedules of funding progress, presented as required supplementary information (RSI) following the
notes to the financial statements, present multiyear trend information about whether the actuarial values
of plan assets are increasing or decreasing over time relative to the AALs for benefits.
88
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Three-Year Trend Information (amounts in thousands)
Annual Net Pension
Years Ended Pension Cost Percentage (Asset)
June 30, (APC) Contributed Obligation
2010 $ 6,462 94% $ (10)
2011 7,297 100% (10)
2012 7,597 99% 63 (2)
(1) The City contributed in excess of its fiscal year 2009 ARC. The City's fiscal year 2010 contribution was
reduced by the dollar amount of the fiscal year 2009 overpayment.
(2) The FY 2012 City contribution was reduced by $73,345 in recognition of additional contributions by
International United Auto Workers (UAW) employees, which were negotiated and contributed after the
establishment of the June 30, 2012 ARC from the December 31, 2010 valuation.
Poiice and Fire Retirement System
The City sponsors and administers the Police and Fire Retirement System (the "Plan"), a single-employer
defined-benefit pension plan. It is accounted for as a separate pension trust fund. No stand-alone
financial reports are issued. It covers all police officers and firefighters who are full-time employees of
the City. The City's payroll for employees covered by the plan for the year ended December 31, 2011,
was $25,128,835, the City's total payroll was $51,197,570. Administration of the plan is funded through
the general fund.
As of December 31, 2011, employee membership data related to the plan was as follows:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 671
Active members:
Vested 280
Nonvested 82
362
Members may retire at age 55, or at any age with 25 or more years of credited service. Members are
vested after completing 10 years of credited service. Members are required to retire at age 60 (Police) or
70 (Fire). Annual retirement allowances are determined by multiplying final average compensation by
3.2% for the first 25 years of credited service. The maximum allowance is 80% of final average
compensation. Final average compensation is the member's highest wages for 2 consecutive years.
89
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
When an employee who had retired subsequent to August 31, 1966, dies, the plan provides for an
automatic pension to the retiree's spouse. This automatic pension is equal to 50% of the regular
retirement benefit the employee had been receiving at time of death. Effective July 30, 1990, members
may elect a reduced benefit, either 93% or 86% of the regular benefit, thereby increasing the spouse
pension to 75% or 86% of the regular benefit, respectively. Alternately, members may elect a non-spousal
beneficiary option. The plan provides death and disability benefits. If a member leaves employment or
dies before vesting, accumulated member contributions plus interest are refunded to the member or
designated beneficiary. Members who are vested and terminate their employment have the option of
deferred retirement benefits until age 55 or withdrawing their contribution, thereby forfeiting any future
benefits.
Fire members are required to contribute 9.08% of their annual wages to the plan. Police supervisors are
required to contribute 9.52% and police non-supervisors, 8.50%. Chapter 294 of the City of Lansing's
Ordinance establishes benefit provisions and requires that the portion of the annuity and pension reserves
(which are determined annually by the City's actuary) not financed by member contributions shall be
financed by annual appropriations.
In addition to the payments under this plan, the City made payments from the general fund to provide
benefits for the beneficiaries of a prior pension plan. This prior plan was superseded by the present plan
as of January 1, 1944. There were no payments made to beneficiaries under that plan.
The City's funding policy provides for periodic employer contributions at actuarially determined rates
that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to
pay benefits when due. The normal cost and amortization payment for the year ended June 30, 2012,
was determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are
being amortized as a level percent of payroll over a closed period of 30 years.
Plan valuation assets are equal to the reported market value of assets except that only 20% of the
difference between the mark-to-market rate of return and the 7.8% actuarial rate of return is recognized
each year. This five year smoothing method reduces the fluctuation in the City's computed contribution
rate which might otherwise be caused by market value fluctuations. The entry-age actuarial cost method
is used to determine plan liabilities. Significant actuarial assumptions used in determining the entry-age
actuarial accrued liability include (a) a rate of return on investments of 7.8% per year compounded
annually (b) projected salary increases of 4.1% to 10.5% (including 3.3% attributable to inflation)
depending on age attributable to seniority/merit and (c) assumption that benefits generally will not
increase after retirement.
During the year ended June 30, 2012, total contributions of $11,574,874 were made in accordance with
actuarially determined requirements computed through an actuarial valuation performed as of December
31, 2010. The City contributed $9,057,080 (36.04% of projected valuation payroll), excluding contributions
for health insurance; employees contributed $2,517,794 (10.02% of projected valuation payroll). The
City's contribution consisted of (a) $3,585,885 normal cost (14.27% of projected valuation payroll) and (b)
$5,471,195 amortization of the unfunded actuarial accrued liability (21.77% of projected valuation
payroll).
90
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
At December 31, 2011, the actuarial accrued liability in excess of assets was determined as follows:
Actuarial accrued liability for:
Active participants (280 vested and 82 non-vested) $ 116,327,833
Retired participants and beneficiaries currently
receiving benefits (671 recipients) 253,223,779
Vested terminated participants not yet receiving benefits (16) 2,995,898
Total actuarial accrued liability 372,547,510
Actuarial value of assets (smoothed market value) * 264,492,738
Unfunded actuarial accrued liability $ 108,054,772
* Excluding reserve for health insurance
For the fiscal year ending June 30, 2012, the annual required contribution of $9,242,173 exceeded the
actual City contribution, resulting in a net pension obligation of$175,646.
Annual required contribution $ 9,242,173
Interest on net pension asset (720)
Adjustment to annual required contribution 504
Annual net pension cost 9,241,957
Contributions made (9,057,080)
Change in net pension obligation 184,877
Net pension asset, beginning of year (9,231)
Net pension obligation, end of year $ 175,646
Significant actuarial assumptions used to compute contribution requirements were the same as those used
to compute the standardized measure of the actuarial accrual liability.
The schedules of funding progress, presented as required supplementary information (RSI) following the
notes to the financial statements, present multiyear trend information about whether the actuarial values
of plan assets are increasing or decreasing over time relative to the AALs for benefits.
91
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Three-Year Trend Information (amounts in thousands)
Annual Net Pension
Years Ended Pension Cost Percentage (Asset)
June 30, (APC) Contributed Obligation
2010 $ 7,170 95% $ (389)
2011 8,240 100% (9)
2012 9,242 98% 175 (2)
(1) The City contributed in excess of its fiscal year 2009 ARC. The City's fiscal year 2010 contribution was
reduced by the dollar amount of the fiscal year 2009 overpayment.
(2) The FY 2012 City contribution was reduced by $185,093 in recognition of additional contributions by
International Association of Firefighters (IAFF) employees, which were negotiated and contributed after
the establishment of the June 30, 2012 ARC from the December 31, 2010 valuation.
Employees'Money Purchase Pension Plan
The City of Lansing sponsors and contributes to the Employees' Money Purchase Pension Plan (the "Plan"),
which is a single-employer defined - contribution pension plan. Administration of the plan is funded by
the general fund.
A defined contribution pension plan provides pension benefits in return for services rendered, provides an
individual account for each participant, and specifies how contributions to the individual's account are to
be determined instead of specifying the amount of benefits the individual is to receive. Under a defined
contribution pension plan, the benefits a participant will receive depend solely on the amount
contributed to the participant's account and the returns earned on investments of those contributions. As
established by Chapter 292.30 of the City of Lansing's Code of Ordinances, this plan includes all elected
officials hired subsequent to September 30, 1990. As of June 30, 2012, there were 7 active members in
this plan. Contributions made by employees vest immediately, and contributions made by the City vest
after three years of full-time employment. When employees terminate employment, they are entitled to
their contributions and the City's contributions if vesting requirements are satisfied. Employees may
contribute up to 8% of their wages in 1% increments. The City contributes an amount equal to 6.0% of the
employees' wages for retirement benefits.
During the year, the City's required and actual contributions amounted to $17,323, which was
approximately 6% of covered payroll of $288,719. There were no employee contributions.
No pension provision changes occurred during the year that affected the required contributions to be
made by the City. In addition, the plan does not issue stand-alone financial statements.
92
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Financial statements for individual pension and employee benefit plans:
Pension Net Assets
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Health Care
Pension OPEB System System OPEB Pension Plan VEBA Totals
Assets
Cash and cash equivalents $ 4,777,134 $ - $ 3,217,827 $ - $ $ $ 7,994,961
Investments:
Money market funds 1,942,002 150,326 1,868,231 427,472 4,388,031
Government obligations 24,311,634 2,237,240 40,812,991 2,244,152 69,606,017
Corporate bonds 35,410,827 2,314,462 43,384,550 2,459,928 83,569,767
Common stocks 77,326,944 4,134,476 124,074,497 4,965,460 210,501,377
Mutualfunds 23,248,678 6,272,228 38,524,909 8,058,800 1,677,938 14,011,970 91,794,523
Contribution receivable - - - - 1,603 - 1,603
Dividends and interest receivable 207,759 - 279,458 - 38,553 525,770
Total assets 167,224,978 15,108,732 252,162,463 18,155,812 1,679,541 14,050,523 468,382,049
Liabilities
Accounts payable 1,904,217 - 1,200,771 - - - 3,104,988
Net assets held in trust for
Pension benefits 165,320,761 - 250,961,692 - 1,679,541 - 417,961,994
Other postemployment benefits - 15,108,732 - 18,155,812 - 14,050,523 47,315,067
Total net assets $ 165,320,761 $ 15,108,732 $ 250,961,692 $ 18,155,812 $ 1,679,541 $ 14,050,523 $ 465,277,061
93
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Changes in Pension Net Assets
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Health Care
Pension OPEB System System OPEB Pension Plan VEBA Totals
Additions
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 822,544 $ (434,071) $ 8,653,198 $ (785,978) $ - $ - $ 8,255,693
Interest income 4,491,464 1,456,307 12,313 652,420 6,612,504
Dividend income 805,160 1,297,884 - - 2,103,044
Investment expenses - - (5,921) - (5,921)
Net investment income 6,119,168 (434,071) 11,407,389 (785,978) 6,392 652,420 16,965,320
Contributions:
Employer 7,523,535 10,363,847 9,057,080 9,888,796 17,323 615,000 37,465,581
Plan members 1,464,745 - 2,517,794 - - - 3,982,539
Total contributions 8,988,280 10,363,847 11,574,874 9,888,796 17,323 615,000 41,448,120
Total additions 15,107,448 9,929,776 22,982,263 9,102,818 23,715 1,267,420 58,413,440
Deductions
Participant benefits 20,392,187 10,151,847 25,199,905 9,310,796 146,441 - 65,201,176
Administrative expense 766,485 - 1,001,798 - - 1,768,283
Total deductions 21,158,672 10,151,847 26,201,703 9,310,796 146,441 66,969,459
Net change in net assets
held in trust (6,051,224) (222,071) (3,219,440) (207,978) (122,726) 1,267,420 (8,556,019)
Net assets held in trust
for pension and other
postemployment benefits:
Beginning of year 171,371,985 15,330,803 254,181,132 18,363,790 1,802,267 12,783,103 473,833,080
End of year $165,320,761 $ 15,108,732 $250,961,692 $ 18,155,812 $ 1,679,541 $ 14,050,523 $465,277,061
94
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
18. OTHER POSTEMPLOYMENT BENEFITS
Primary Government
Plan Description. The City of Lansing contributes to the Employees' Retirement System, the Police and
Fire Retirement System, and the Voluntary Employees Beneficiary Association amounts to pre-fund
postemployment healthcare. In the Employees' Retirement System and the Police and Fire Retirement
System, these other postemployment benefits (OPEB) are set up as reserves in the pension plans, and
their investments are commingled with the investments of the pension. Portfolio makeup is reported as a
percentage of total pension plan assets. Earnings are calculated based on a seven year smoothed rate of
return of the retirement systems. Eligible participants include any retirees who receive pension benefits
under the respective pension plans. OPEB plan provisions are established and may be amended by the City
Council, subject to the City's various collective bargaining agreements. Separate financial statements
are not prepared for the plans.
Basis of Accounting. The Plans' financial statements are prepared using the accrual basis of accounting.
Plan member contributions are recognized in the period in which the contributions are due. Employer
contributions are recognized when 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 plans.
Method Used to Value Investments. Plan investments are reported at fair value. Securities traded on a
national or international exchange are valued at the last reported sales price at current exchange rates.
Investments for which market quotations are not readily available are valued at their fair values as
determined by the custodian under the direction of each plans' board of trustees, with the assistance of a
valuation service.
Voluntary Employment Beneficiary Association(VEBA)
The City of Lansing Voluntary Employees Beneficiary Association (the "Plan") is a single-employer defined
benefit post employment healthcare plan established by the City to provide medical and healthcare
benefits for retirees and their beneficiaries. Eligible participants include any retirees who receive pension
benefits under one of the City's pension plans. The Plan is funded by a trust agreement established
pursuant to Section 501(c)(9) of the Internal Revenue Code that allows for the formation of a VEBA.
During the year, the City contributed $615,000 to the Plan.
95
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Employees'Retirement &1stem
The City provides postemployment health care benefits, in accordance with labor agreements, to full-
time employees of the City and employees of the 54-A District Court (not including police officers and
firefighters who are members of the Police and Fire Retirement System). Members eligible for pension
benefits under the Employees' Retirement System are also eligible to receive health care benefits. The
City provides the full cost of health benefits to retirees, payable to health care vendors, and also
reimburses retirees eligible for Medicare benefits of $96.40 per month for each covered retiree and
dependent(s). The payments are charged to the fringe benefit internal service fund of the City and are
recognized as expenses as payments are made.
Membership of the Plan consisted of the following at December 31, 2011, the date of the most recent
actuarial valuation:
Retirees and beneficiaries receiving benefits 675
Terminated plan members entitled to but
not yet receiving benefits 65
Active plan members 481
Total 1,221
During the year, the City contributed $10,363,847 (direct benefit payments of $10,151,847 and City
contributions of$212,000) to the Plan.
Annual required contribution $ 14,980,775
Interest on net OPEB asset (250,750)
Adjustment to annual required contribution 185,933
Net OPEB cost (expense) 14,915,958
Contributions made (10,363,847)
Increase in net OPEB obligation 4,552,111
Net OPEB asset, beginning of year (3,214,740)
Net OPEB obligation, end of year $ 1,337,371
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for the current year and the two preceding years were as follows:
Three-Year Trend Information
Percentage
of Annual Net OPEB
Annual OPEB OPEB Cost (Asset)
Year Ended Cost Contributed Obligation
2010 $ 9,782,538 95.1% $ (2,260,157)
2011 8,819,018 110.8% (3,214,740)
2012 14,915,958 69.5% 1,337,371
96
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The schedule of employer contributions, presented as required supplementary information (RSI) following
the notes to the financial statements, presents trend information about the amounts contributed to the
plan by employers in comparison to the ARC, an amount that is 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 for each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years.
Funded Status and Funding Progress. As of December 31, 2011, the most recent actuarial valuation date,
the Plan was 12.6 percent funded. The actuarial accrued liability for benefits was $226,915,143, and the
actuarial value of assets was $28,680,151, resulting in an unfunded actuarial accrued liability (UAAL) of
$198,234,992. The covered payroll (annual payroll of active employees covered by the Plan) was
$24,813,423, and the ratio of the UAAL to the covered payroll was 798.9 percent. The Employees'
Retirement System and VEBA were combined in the actuarial valuation.
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, presented as required supplementary information
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
liabilities for benefits.
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 that point. The actuarial methods and 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.
In the December 31, 2011 actuarial valuation, the entry age actuarial cost method was used. The
actuarial assumptions included a 4.3 percent investment rate of return (net of administrative expenses),
which includes a 3.0 percent inflation assumption. The actuarial value of assets was determined using
techniques that spread the effects of short-term volatility in the market value of investments over a five-
year period. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The
remaining amortization period at December 31, 2011, was thirty years.
97
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
Police and Fire Retirement System
The City also provides postemployment health care benefits, in accordance with labor agreements, to
members who are eligible to receive pension benefits under the Police and Fire Retirement System. The
City provides the full cost of health benefits to retirees, payable to health care vendors, and also
reimburses retirees eligible for Medicare benefits of $96.40 per month for each covered retiree and
dependent(s). The payments are charged to the fringe benefit internal service fund of the City and are
recognized as expenses as payments are made.
Membership of the Plan consisted of the following at December 31, 2011, the date of the most recent
actuarial valuation:
Retirees and beneficiaries receiving benefits 478
Terminated plan members entitled to but
not yet receiving benefits 16
Active plan members 362
Total 856
During the year, the City contributed $9,888,796 (direct benefit payments of $9,310,796 and City
contributions of$578,000) to the Plan.
Annual required contribution $ 17449,576
Interest on net OPEB obligation 1:526,320
Adjustment to annual required contribution (1,131,781)
Net OPEB cost (expense) 17,844,115
Contributions made (9,888,796)
Increase in net OPEB obligation 7,955,319
Net OPEB obligation, beginning of year 19,568,200
Net OPEB obligation, end of year $ 27,523,519
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for the current year and the two preceding years were as follows:
Three-Year Trend Information
Percentage
of Annual
Annual OPEB OPEB Cost Net OPEB
Year Ended Cost Contributed Obligation
2010 $ 16,563,477 57.9% $ 12,938,273
2011 16,474,153 59.8% 19,568,200
2012 17,844,115 55.4% 27,523,519
98
CITY OF LANSING, MICHIGAN
Notes to Financial Statements
The schedule of employer contributions, presented as required supplementary information (RSI) following
the notes to the financial statements, presents trend information about the amounts contributed to the
plan by employers in comparison to the ARC, an amount that is 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 for each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years.
Funded Status and Funding Progress. As of December 31, 2011, the most recent actuarial valuation date,
the Plan was 7.4 percent funded. The actuarial accrued liability for benefits was $252,220,445, and the
actuarial value of assets was $18,678,699, resulting in an unfunded actuarial accrued liability (UAAL) of
$233,541,746. The covered payroll (annual payroll of active employees covered by the Plan) was
$25,128,835, and the ratio of the UAAL to the covered payroll was 929.4 percent.
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, presented as required supplementary information
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
liabilities for benefits.
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 that point. The actuarial methods and 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.
In the December 31, 2011 actuarial valuation, the entry age actuarial cost method was used. The
actuarial assumptions included a 4.3 percent investment rate of return (net of administrative expenses),
which includes a 3.0 percent inflation assumption. The actuarial value of assets was determined using
techniques that spread the effects of short-term volatility in the market value of investments over a five-
year period. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The
remaining amortization period at December 31, 2011, was thirty years.
■ ■ ■ ■ ■
99
REQUIRED SUPPLEMENTARY INFORMATION
100
CITY OF LANSING, MICHIGAN
Required Supplementary Information
Employees' Retirement System
(amounts in thousands)
Schedule of Funding Progress
Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Underfunded Funded Covered %of Covered
Valuation Assets Liability AAL (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
12/31/2006 $ 208,765 $ 251,427 $ 42,662 83.0% $ 31,944 133.6%
12/31/2007 208,572 254,356 45,784 82.0% 31,797 144.0%
12/31/2008 200,600 258,331 57,731 77.7% 29,688 194.5%
12/31/2009 193,324 262,298 68,974 73.7% 30,602 225.4%
12/31/2010 187,441 269,462 82,021 69.6% 27,767 295.4%
12/31/2011 177,101 287,307 110,206 61.6% 26,069 422.7%
Schedule of Employer Contributions
Annual
Required
Year Ended Contribution Percentage
June 30, (ARC) Contributed
2007 $ 5,231 100.0%
2008 6,022 100.0%
2009 6,048 105.0% )1)
2010 6,472 93.4% ")
2011 7,297 100.0%
2012 7,597 99.0% )z)
(1) The City contributed in excess of its fiscal year 2009 ARC. The City's fiscal year 2010
contribution was reduced by the dollar amount of the fiscal year 2009 overpayment.
(2) The FY 2012 City contribution was reduced by $73,345 in recognition of additional
contributions by International United Auto Workers (UAW) employees, which were
negotiated and contributed after the establishment of the June 30, 2012 ARC from the
December 31, 2010 valuation.
101
CITY OF LANSING, MICHIGAN
Required Supplementary Information
Police and Fire Retirement System
(amounts in thousands)
Schedule of Funding Progress
Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Underfunded Funded Covered %of Covered
Valuation Assets Liability AAL (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
12/31/2006 $ 278,839 $ 308,193 $ 29,354 90.5% $ 29,582 99.2%
12/31/2007 293,571 315,635 22,064 93.0% 29,600 74.5%
12/31/2008 287,394 326,673 39,279 88.0% 30,161 130.2%
12/31/2009 280,342 337,315 56,973 83.1% 30,443 187.1%
12/31/2010 276,377 359,293 82,916 76.9% 28,536 290.6%
12/31/2011 264,493 372,548 108,055 71.0% 25,129 430.0%
Schedule of Employer Contributions
Annual
Required
Year Ended Contribution Percentage
June 30, (ARC) Contributed
2007 $ 5,386 100.0%
2008 6,521 100.0%
2009 6,094 106.0%
2010 7,179 94.6%
2011 8,241 100.0%
2012 9,242 98.0% '2)
(1) The City contributed in excess of its fiscal year 2009 ARC. The City's fiscal year 2010
contribution was reduced by the dollar amount of the fiscal year 2009 overpayment.
(2) The FY 2012 City contribution was reduced by $185,093 in recognition of additional
contributions by International Association of Firefighters (IAFF) employees, which were
negotiated and contributed after the establishment of the June 30, 2012 ARC from the
December 31, 2010 valuation.
102
CITY OF LANSING, MICHIGAN
Required Supplementary Information
Other Postemployment Benefit Plans
(amounts in thousands)
Employees' Retirement System and VEBA- Schedule of Funding Progress
Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Underfunded Funded Covered %of Covered
Valuation Assets Liability AAL (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
12/31/2006 $ 14,337 $ 147,388 $ 133,051 9.7% $ 31,944 416.5%
12/31/2009 24,364 203,400 179,036 12.0% 30,602 585.0%
12/31/2011 28,680 226,915 198,235 12.6% 24,813 798.9%
Police and Fire Retirement System - Schedule of Funding Progress
Actuarial Actuarial Underfunded UAAL as a
Actuarial Value of Accrued (Overfunded) Funded Covered %of Covered
Valuation Assets Liability AAL (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
12/31/2006 $ 13,064 $ 155,559 $ 142,495 8.4% $ 29,582 481.7%
12/31/2009 17,477 214,899 197,422 8.1% 30,443 648.5%
12/31/2011 18,679 252,220 233,541 7.4% 25,129 929.4%
Employees' Retirement System and VEBA- Schedule of Employer Contributions
Annual
Required Percentage
Year Ended Contribution of ARC
June 30, (ARC) Contributed
2010 $ 10,290 95.1%
2011 8,867 110.2%
2012 14,981 69.2%
Police and Fire Retirement System - Schedule of Employer Contributions
Annual
Required Percentage
Year Ended Contribution of ARC
June 30, (ARC) Contributed
2010 $ 17,177 38.3%
2011 16,202 60.8%
2012 17,450 56.7%
103
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
104
CITY OF LANSING, MICHIGAN
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2012
Special Debt Capital
Revenue Service Projects Permanent Totals
Assets
Cash and cash equivalents $ 40,001 $ - $ 586,877 $ - $ 626,878
Equity in pooled cash 2,907,198 100 2,990,337 1,683,293 7,580,928
Investments - - 425,107 - 425,107
Accounts receivable, net 1,340,482 136,871 1,477,353
Special assessments receivable - 690,559 690,559
Loans receivable 1,385,000 - 1,385,000
Accrued interest receivable 2,009,367 - 2,009,367
Due from other funds 2,000,000 1,034,151 3,034,151
Due from other governments 1,731,252 1,070 1,732,322
Inventories 1,168,711 - - 1,168,711
Total assets $ 12,582,011 $ 100 $ 5,864,972 $ 1,683,293 $ 20,130,376
Liabilities
Accounts payable $ 1,058,311 $ 100 $ 213,025 $ - $ 1,271,436
Deposits payable 80,734 - - 80,734
Accrued payroll 257,242 - 257,242
Retainage payable 141 7 148
Due to other funds 1,498,325 437,663 1,935,988
Advances from other funds - 527,815 527,815
Due to other governments 225,777 - 225,777
Deferred revenue 3,246,531 615,657 3,862,188
Total liabilities 6,367,061 100 1,794,167 - 8,161,328
Fund balances
Nonspendable 1,168,711 - - 1,683,293 2,852,004
Restricted 4,653,862 897,825 - 5,551,687
Committed 467,123 3,642,008 4,109,131
Unassigned (deficit) (74,746) (469,028) - (543,774)
Total fund balances 6,214,950 4,070,805 1,683,293 11,969,048
Total liabilities and fund balances $ 12,582,011 $ 100 $ 5,864,972 $ 1,683,293 $ 20,130,376
105
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2012
Special Debt Capital
Revenue Service Projects Permanent Totals
Revenues
Taxes and special assessments $ 416,290 $ 562,850 $ 102,749 $ $ 1,081,889
Intergovernmental 12,115,097 - - 12,115,097
Charges for services 8,193,332 542,243 8,735,575
Fines and forfeits 593,219 - - 593,219
Interest 790 2,347 4,868 6,446 14,451
Contributions 10,000 - - - 10,000
Donations from private sources - 5,000 5,000
Otherrevenues 255,702 - - - 255,702
Total revenues 21,584,430 565,197 654,860 6,446 22,810,933
Expenditures
Current expenditures:
General government 2,598,616 - - - 2,598,616
Public safety 7,465,775 7,465,775
Highways and streets 8,589,298 8,589,298
Recreation and culture 488 - 488
Debt service:
Principal 1,281,004 620,000 1,901,004
Interest 682,573 182,120 - 864,693
Capital outlay 3,328,238 - 3,137,846 6,466,084
Total expenditures 23,945,992 802,120 3,137,846 - 27,885,958
Revenues over (under)
expenditures (2,361,562) (236,923) (2,482,986) 6,446 (5,075,025)
Other financing sources (uses)
Transfers in 5,181,208 190,895 1,836,990 16,916 7,226,009
Transfers out (3,123,633) - (2,004,211) (6,446) (5,134,290)
Total other financing sources (uses) 2,057,575 190,895 (167,221) 10,470 2,091,719
Net change in fund balances (303,987) (46,028) (2,650,207) 16,916 (2,983,306)
Fund balances, beginning of year 6,518,937 46,028 6,721,012 1,666,377 14,952,354
Fund balances, end of year $ 6,214,950 $ - $ 4,070,805 $ 1,683,293 $ 11,969,048
106
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107
CITY OF LANSING, MICHIGAN
Nonmajor Special Revenue Funds
Major Streets Fund - This fund accounts for revenues received from the State of Michigan for the
City's share of state gasoline and weight taxes, which is used for maintenance of major streets.
Local Streets Fund - This fund accounts for revenues received from the State of Michigan for the
City's share of state gasoline and weight taxes, which is used for maintenance of local streets.
Drug Law Enforcement Fund - This fund accounts for revenues set aside for drug law enforcement
under the provisions of State of Michigan Public Act 135 of 1985, as amended.
Community Development Block Grant Program Fund - This fund accounts for revenues received
from the Department of Housing and Urban Development. These revenues are restricted to
accomplishing the various objectives of Community Development Block Grant Programs, within
specific target areas.
Downtown Lansing, Inc. Fund - This fund accounts for assessments received from businesses
located in the district. The revenues are used for special events and maintenance of the district.
911 Communications Center Fund - This fund accounts for the operations of the county-wide 911
communications center. Revenues received are from the County for actual expenditures incurred.
Building Department Fund - This fund accounts for revenues and expenditures resulting from the
enforcement of the State Construction Code Act of 1999 (PA 245 of 1999).
Parks Department Fund - This fund accounts for contributions and transfers which are restricted
for park expenditures.
Tri-County Metro Fund - This fund accounts for the operations of the Tri-County Metro Narcotics
Squad.
108
CITY OF LANSING, MICHIGAN
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2012
Community
Development
Major Local Drug Law Block Grant Downtown
Streets Streets Enforcement Program Lansing, Inc.
Assets
Cash and cash equivalents $ - $ - $ 15,000 $ - $
Equity in pooled cash 1,035,842 262,169 9,628 49,168 31,768
Accounts receivable, net - - - - -
Loans receivable 1,385,000
Accrued interest receivable - 2,009,367
Due from other funds 2,000,000 - -
Due from other governments 1,140,899 301,493 244,719
Inventories 1,168,711 - - - -
Total assets $ 5,345,452 $ 563,662 $ 24,628 $ 3,688,254 $ 31,768
Liabilities
Accounts payable $ 748,767 $ 37,696 $ 65,248 $ 66,853 $ 7,864
Deposits payable - - - - -
Accrued payroll - 14,126 27,034 2,638
Retainage payable 141 - - -
Due to other funds 30,000 20,000 400,000
Due to other governments - - -
Deferred revenue - - - 3,194,367 -
Total liabilities 748,767 67,837 99,374 3,688,254 10,502
Fund balances
Nonspendable 1,168,711 - - - -
Restricted 3,427,974 495,825 21,266
Committed - - -
Unassigned (deficit) - - (74,746) -
Total fund balances 4,596,685 495,825 (74,746) - 21,266
Total liabilities and fund balances $ 5,345,452 $ 563,662 $ 24,628 $ 3,688,254 $ 31,768
109
911
Communications Building Parks Tri-County
Center Department Department Metro Totals
$ $ $ - $ 25,001 $ 40,001
6,388 467,123 1,045,112 2,907,198
1,250,802 8,041 - 81,639 1,340,482
- - - 1,385,000
2,009,367
- 2,000,000
44,141 1,731,252
- - - - 1,168,711
$ 1,250,802 $ 14,429 $ 467,123 $ 1,195,893 $ 12,582,011
$ 3,680 $ 27 $ - $ 128,176 $ 1,058,311
- - 80,734 80,734
198,797 14,402 245 257,242
- - - 141
1,048,325 - 1,498,325
- 225,777 225,777
- - 52,164 3,246,531
1,250,802 14,429 487,096 6,367,061
- - - 1,168,711
- 708,797 4,653,862
467,123 - 467,123
- - (74,746)
- - 467,123 708,797 6,214,950
$ 1,250,802 $ 14,429 $ 467,123 $ 1,195,893 $ 12,582,011
110
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2012
Community
Development
Major Local Drug Law Block Grant Downtown
Streets Streets Enforcement Program Lansing, Inc.
Revenues
Taxes and special assessments $ - $ - $ $ - $ 416,290
Intergovernmental 7,196,661 1,827,483 1,853,232 -
Chargesforservices 755,817 540,212 - 4,225
Fines and forfeits - - 454,742 -
Interest 666 51 -
Contributions - - - - 10,000
Otherrevenues 73,951 2,196 - 27,644 151,911
Total revenues 8,027,095 2,369,891 454,793 1,880,876 582,426
Expenditures
Current expenditures:
General government - - - - 649,507
Public safety - - 687,365 -
Highways and streets 4,709,553 3,879,745 -
Recreation and culture - -
Debt service:
Principal 429,804 851,200
Interest 179,175 503,398 -
Capital outlay 1,335,188 112,174 - 1,880,876 -
Total expenditures 6,653,720 5,346,517 687,365 1,880,876 649,507
Revenues over (under)
expenditures 1,373,375 (2,976,626) (232,572) - (67,081)
Other financing sources (uses)
Transfers in 1,221,924 3,196,026 39,180
Transfers out (3,047,659) (40,614) (35,360) -
Total other financing
sources (uses) (1,825,735) 3,155,412 (35,360) 39,180
Net change in fund balances (452,360) 178,786 (267,932) (27,901)
Fund balances, beginning of year 5,049,045 317,039 193,186 49,167
Fund balances (deficit), end of year $ 4,596,685 $ 495,825 $ (74,746) $ $ 21,266
111
911
Communications Building Parks Tri-County
Center Department Department Metro Totals
$ $ $ $ - $ 416,290
1,237,721 12,115,097
5,478,835 1,414,243 - 8,193,332
- - 138,477 593,219
30 43 790
- - 10,000
- - - 255,702
5,478,835 1,414,243 30 1,376,241 21,584,430
- 1,949,109 - - 2,598,616
5,621,605 - 1,156,805 7,465,775
- - - 8,589,298
488 488
- 1,281,004
682,573
- - - 3,328,238
5,621,605 1,949,109 488 1,156,805 23,945,992
(142,770) (534,866) (458) 219,436 (2,361,562)
142,770 534,866 - 46,442 5,181,208
- - - (3,123,633)
142,770 534,866 - 46,442 2,057,575
- - (458) 265,878 (303,987)
467,581 442,919 6,518,937
$ $ $ 467,123 $ 708,797 $ 6,214,950
112
CITY OF LANSING, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended June 30, 2012
Major Streets
Actual Over
Final (Under) Final
Budget Actual Budget
Revenues
Taxes and special assessments $ $ $ -
Intergovernmental 7,040,000 7,196,661 156,661
Charges for services 403,317 755,817 352,500
Fines and forfeits - - -
Interest 2,000 666 (1,334)
Contributions - - -
Otherrevenues 19,000 73,951 54,951
Total revenues 7,464,317 8,027,095 562,778
Expenditures
Current expenditures:
General government - - -
Public safety - -
Highways and streets 5,804,721 4,709,553 (1,095,168)
Recreation and culture - -
Debt service:
Principal 429,804 429,804 -
Interest 179,675 179,175 (500)
Capital outlay 4,203,777 1,335,188 (2,868,589)
Total expenditures 10,617,977 6,653,720 (3,964,257)
Revenues over (under) expenditures (3,153,660) 1,373,375 4,527,035
Other financing sources (uses)
Transfers in 1,575,710 1,221,924 (353,786)
Transfers out (2,853,924) (3,047,659) (193,735)
Total other financing sources (uses) (1,278,214) (1,825,735) (547,521)
Net change in fund balances (4,431,875) (452,360) 3,979,515
Fund balances, beginning of year 5,049,045 5,049,045 -
Fund balances (deficit), end of year $ 617,170 $ 4,596,685 $ 3,979,515
113
Local Streets Drug Law Enforcement
Actual Over Actual Over
Final (Under) Final Final (Under) Final
Budget Actual Budget Budget Actual Budget
2,173,201 1,827,483 (345,718)
520,580 540,212 19,632 - -
- - - 850,000 454,742 (395,258)
63,600 51 (63,549)
610 2,196 1,586 -
2,694,391 2,369,891 (324,500) 913,600 454,793 (458,807)
- - 846,687 687,365 (159,322)
4,073,222 3,879,745 (193,477) - -
851,200 851,200 -
503,898 503,398 (500)
743,925 112,174 (631,751) -
6,172,245 5,346,517 (825,728) 846,687 687,365 (159,322)
(3,477,855) (2,976,626) 501,229 66,913 (232,572) (299,485)
3,439,963 3,196,026 (243,937) - -
- (40,614) (40,614) (72,712) (35,360) 37,352
3,439,963 3,155,412 (284,551) (72,712) (35,360) 37,352
(37,892) 178,786 216,678 (5,799) (267,932) (262,133)
317,039 317,039 - 193,186 193,186
$ 279,147 $ 495,825 $ 216,678 $ 187,387 $ (74,746) $ (262,133)
continued...
114
CITY OF LANSING, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended June 30, 2012
Community Development Block Grant Program
Actual Over
Final (Under) Final
Budget Actual Budget
Revenues
Taxes and special assessments $ $ $
Intergovernmental 4,593,144 1,853,232 (2,739,912)
Charges for services - -
Fines and forfeits
Interest
Contributions - -
Otherrevenues 57,467 27,644 (29,823)
Total revenues 4,650,610 1,880,876 (2,769,734)
Expenditures
Current expenditures:
General government - -
Public safety
Highways and streets
Recreation and culture
Debt service:
Principal
Interest - -
Capital outlay 4,650,610 1,880,876 (2,769,734)
Total expenditures 4,650,610 1,880,876 (2,769,734)
Revenues over (under) expenditures - -
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances (deficit), end of year $ $ $
115
Downtown Lansing, Inc. 911 Communications Center
Actual Over Actual Over
Final (Under) Final Final (Under) Final
Budget Actual Budget Budget Actual Budget
$ 417,000 $ 416,290 $ (710) $ $ $
3,200 4,225 1,025 5,524,250 5,478,835 (45,415)
110 - (110)
10,000 10,000 -
168,175 151,911 (16,264) - -
598,485 582,426 (16,059) 5,524,250 5,478,835 (45,415)
671,340 649,507 (21,833) - -
- - 5,958,157 5,621,605 (336,552)
671,340 649,507 (21,833) 5,958,157 5,621,605 (336,552)
(72,855) (67,081) 5,774 (433,907) (142,770) 291,137
39,180 39,180 - 283,602 142,770 (140,832)
39,180 39,180 - 283,602 142,770 (140,832)
(33,675) (27,901) 5,774 (150,305) - 150,305
49,167 49,167 - -
$ 15,492 $ 21,266 $ 5,774 $ (150,305) $ $ 150,305
continued...
116
CITY OF LANSING, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended June 30, 2012
Building Department
Actual Over
Final (Under) Final
Budget Actual Budget
Revenues
Taxes and special assessments $ $ $
Intergovernmental -
Chargesforservices 1,378,600 1,414,243 35,643
Fines and forfeits - - -
Interest
Contributions
Otherrevenues - - -
Total revenues 1,378,600 1,414,243 35,643
Expenditures
Current expenditures:
General government 1,928,569 1,949,109 20,540
Public safety - - -
Highways and streets
Recreation and culture
Debt service:
Principal
Interest
Capital outlay - - -
Total expenditures 1,928,569 1,949,109 20,540
Revenues over (under) expenditures (549,969) (534,866) 15,103
Other financing sources (uses)
Transfers in 549,969 534,866 (15,103)
Transfers out - -
Total other financing sources (uses) 549,969 534,866 (15,103)
Net change in fund balances - -
Fund balances, beginning of year
Fund balances (deficit), end of year $ $ $
117
Parks Department Tri-County Metro
Actual Over Actual Over
Final (Under) Final Final (Under) Final
Budget Actual Budget Budget Actual Budget
679,685 1,237,721 558,036
- - 200,000 138,477 (61,523)
30 30 245 43 (202)
30 30 879,930 1,376,241 496,311
911,036 1,156,805 245,769
41,663 488 (41,175)
41,663 488 (41,175) 911,036 1,156,805 245,769
(41,663) (458) 41,205 (31,106) 219,436 250,542
- - 31,499 46,442 14,943
- - 31,499 46,442 14,943
(41,663) (458) 41,205 393 265,878 265,485
467,581 467,581 - 442,919 442,919 -
$ 425,918 $ 467,123 $ 41,205 $ 443,312 $ 708,797 $ 265,485
continued...
118
CITY OF LANSING, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended June 30, 2012
Totals
Actual Over
Final (Under) Final
Budget Actual Budget
Revenues
Taxes and special assessments $ 417,000 $ 416,290 $ (710)
Intergovernmental 14,486,030 12,115,097 (2,370,933)
Charges for services 7,829,947 8,193,332 363,385
Fines and forfeits 1,050,000 593,219 (456,781)
Interest 65,955 790 (65,165)
Contributions 10,000 10,000 -
Otherrevenues 245,252 255,702 10,450
Total revenues 24,104,184 21,584,430 (2,519,754)
Expenditures
Current expenditures:
General government 2,599,909 2,598,616 (1,293)
Public safety 7,715,880 7,465,775 (250,105)
Highways and streets 9,877,943 8,589,298 (1,288,645)
Recreation and culture 41,663 488 (41,175)
Debt service:
Principal 1,281,004 1,281,004
Interest 683,573 682,573 (1,000)
Capital outlay 9,598,313 3,328,238 (6,270,075)
Total expenditures 31,798,285 23,945,992 (7,852,293)
Revenues over (under) expenditures (7,694,101) (2,361,562) 5,332,539
Other financing sources (uses)
Transfers in 5,919,922 5,181,208 (738,714)
Transfers out (2,926,636) (3,123,633) (196,997)
Total other financing sources (uses) 2,993,286 2,057,575 (935,711)
Net change in fund balances (4,700,815) (303,987) 4,396,828
Fund balances, beginning of year 6,518,937 6,518,937 -
Fund balances (deficit), end of year $ 1,818,122 $ 6,214,950 $ 4,396,828
concluded
119
CITY OF LANSING, MICHIGAN
Nonmajor Debt Service Funds
1998 Building Authority Fund - This fund accounts for the accumulation of resources for payment
of the 1998 $2,175,000 Building Authority Bonds.
1999 Fire Station Fund - This fund accounts for the accumulation of resources for payment of the
1999 $3,000,000 Unlimited Tax General Obligation Bonds.
2001 Fire Station Fund - This fund accounts for the accumulation of resources for the payment of
the 2001 $4,000,000 Unlimited Tax General Obligation Bonds.
120
CITY OF LANSING, MICHIGAN
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2012
1998 1999 2001
Building Fire Fire
Authority Station Station Totals
Assets
Equity in pooled cash $ $ $ 100 $ 100
Liabilities
Accounts payable $ $ $ 100 $ 100
121
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended June 30, 2012
1998 1999 2001
Building Fire Fire
Authority Station Station Totals
Revenues
Taxes and special assessments $ $ 209,285 $ 353,565 $ 562,850
Interest 850 1,497 2,347
Total revenues 210,135 355,062 565,197
Expenditures
Debt service:
Principal 125,000 185,000 310,000 620,000
Interest 46,300 71,163 64,657 182,120
Total expenditures 171,300 256,163 374,657 802,120
Revenues over (under)
expenditures (171,300) (46,028) (19,595) (236,923)
Other financing sources
Transfers in 171,300 19,595 190,895
Net change in fund balances - (46,028) - (46,028)
Fund balances, beginning of year 46,028 46,028
Fund balances, end of year $ $ - $ $ -
122
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123
CITY OF LANSING, MICHIGAN
Nonmajor Capital Projects Funds
1990 Environmental 1 Fund - This fund accounts for the proceeds of the 1990 $7,000,000
environmental bonds.
1990 Environmental 11 Fund - This fund accounts for the proceeds of the 1990 $6,300,000
environmental bonds.
Special Assessments Fund - This fund is used to account for the financing of public improvements
deemed to benefit the properties against which special assessments are levied.
Lansing Center Improvements Fund - This fund accounts for the proceeds of the 2006 $4,000,000
Lansing Center limited tax bonds.
MTF Bonds Fund - This fund accounts for the proceeds of the $1,600,000 Michigan Transportation
Fund limited tax bonds.
2009 Build America Construction Fund - This fund accounts for the proceeds of the 2009
$10,197,000 capital improvement limited tax general obligation bonds.
Other Capital Projects Fund - This fund accounts for miscellaneous capital projects.
124
CITY OF LANSING, MICHIGAN
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2012
1990 1990 Lansing
Environ- Environ- Special Center
mental mental11 Assessments Improvements
Assets
Cash and cash equivalents $ - $ - $ $ -
Equity in pooled cash 16,843 176,335 146,023
Investments - - -
Accounts receivable, net
Special assessments receivable:
Current 74,902
Deferred 615,657
Due from other funds -
Due from other governments - - 1,070 -
Total assets $ 16,843 $ 176,335 $ 691,629 $ 146,023
Liabilities
Accounts payable $ 15,697 $ - $ 17,185 $ -
Retainage payable - -
Due to other funds -
Advance from other funds 527,815
Deferred revenue - 615,657
Total liabilities 15,697 - 1,160,657 -
Fund balances
Restricted 1,146 176,335 - 146,023
Committed - - -
Unassigned (deficit) - (469,028) -
Total fund balances 1,146 176,335 (469,028) 146,023
Total liabilities and fund balances $ 16,843 $ 176,335 $ 691,629 $ 146,023
125
2009 Build
MTF America
Bonds Construction Other Totals
$ 586,877 $ $ - $ 586,877
- 2,651,136 2,990,337
425,107 - 425,107
- 136,871 136,871
- 74,902
- 615,657
1,034,151 1,034,151
- - - 1,070
$ 586,877 $ 425,107 $ 3,822,158 $ 5,864,972
$ $ - $ 180,143 $ 213,025
7 7
322,109 115,554 - 437,663
- - 527,815
- - - 615,657
322,109 115,554 180,150 1,794,167
264,768 309,553 - 897,825
- - 3,642,008 3,642,008
- - - (469,028)
264,768 309,553 3,642,008 4,070,805
$ 586,877 $ 425,107 $ 3,822,158 $ 5,864,972
126
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the Year Ended June 30, 2012
1990 1990 Lansing
Environ- Environ- Special Center
mental mental11 Assessments Improvements
Revenues
Special assessments $ $ $ 102,749 $
Charges for services - -
Interest 7 13 41
Donations from private sources - - - -
Total revenues 7 13 102,749 41
Expenditures
Capital outlay 42,080 8,118 400,492 113,170
Revenues over (under) expenditures (42,073) (8,105) (297,743) (113,129)
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances (42,073) (8,105) (297,743) (113,129)
Fund balances (deficit), beginning of year 43,219 184,440 (171,285) 259,152
Fund balances (deficit), end of year $ 1,146 $ 176,335 $ (469,028) $ 146,023
127
2009
MTF Build America
Bonds Construction Other Totals
$ $ $ - $ 102,749
542,243 542,243
2,107 2,595 105 4,868
- - 5,000 5,000
2,107 2,595 547,348 654,860
- - 2,573,986 3,137,846
2,107 2,595 (2,026,638) (2,482,986)
40,614 - 1,796,376 1,836,990
(808,883) (545,908) (649,420) (2,004,211)
(768,269) (545,908) 1,146,956 (167,221)
(766,162) (543,313) (879,682) (2,650,207)
1,030,930 852,866 4,521,690 6,721,012
$ 264,768 $ 309,553 $ 3,642,008 $ 4,070,805
128
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129
CITY OF LANSING, MICHIGAN
Nonmajor Permanent Funds
Cemetery Perpetual Care Fund - This fund accounts for transfers from the Cemetery Fund,
representing 15% of lot sales. These funds are invested, and all investment earnings are transferred
to the Cemetery Fund for lot maintenance.
Parks Trust Fund - This fund accounts for contributions made for City parks, the principal of which
must be preserved in accordance with the trust indentures. Income derived from these
contributions is transferred to the Parks Department special revenue fund.
130
CITY OF LANSING, MICHIGAN
Combining Balance Sheet
Nonmajor Permanent Funds
June 30, 2012
Cemetery
Perpetual Parks
Care Trust Totals
Assets
Equity in pooled cash $ 1,682,042 $ 1,251 $ 1,683,293
Fund balances
Nonspendable $ 1,682,042 $ 1,251 $ 1,683,293
131
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Permanent Funds
For the Year Ended June 30, 2012
Cemetery
Perpetual Parks
Care Trust Totals
Revenues
Interest $ 6,446 $ $ 6,446
Other financing sources (uses)
Transfers in 16,916 16,916
Transfers out (6,446) - (6,446)
Total other financing sources (uses) 10,470 10,470
Net change in fund balances 16,916 - 16,916
Fund balances, beginning of year 1,665,126 1,251 1,666,377
Fund balances, end of year $ 1,682,042 $ 1,251 $ 1,683,293
132
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133
CITY OF LANSING, MICHIGAN
Nonmajor Enterprise Funds
Cemetery Fund - This fund accounts for the operation of City-owned cemeteries.
Golf Fund - This fund accounts for the operation of the City-owned golf courses.
Garbage and Rubbish Collection Fund - This fund accounts for the provision of household solid
waste disposal services to participating residents of the City.
Recycling Fund - This fund accounts for the provision of recycling services to participating residents
of the City.
134
CITY OF LANSING, MICHIGAN
Combining Statement of Net Assets
Nonmajor Enterprise Funds
June 30, 2012
Garbage and
Rubbish
Cemetery Golf Collection Recycling Totals
Assets
Current assets:
Cash and cash equivalents $ 200 $ 300 $ - $ - $ 500
Equity in pooled cash 57,561 100,710 39,430 946,050 1,143,751
Accounts receivable, net - - 517,525 25,313 542,838
Inventories 75,317 2,849 50,054 - 128,220
Total current assets 133,078 103,859 607,009 971,363 1,815,309
Noncurrent assets:
Capital assets not being depreciated 57,740 446,501 - 19,412 523,653
Capital assets being depreciated, net 177,083 2,292,790 687,733 3,157,606
Total noncurrent assets 234,823 2,739,291 - 707,145 3,681,259
Total assets 367,901 2,843,150 607,009 1,678,508 5,496,568
Liabilities
Current liabilities:
Accounts payable 1,580 2,131 24,823 64,449 92,983
Accrued interest payable - 6,725 - - 6,725
Accrued payroll 883 13,170 - 14,053
Due to other funds 100,000 - 200,000 300,000
Unearned revenues - 27,393 91,992 119,385
Current portion of:
Bonds and notes payable - 85,000 - 85,000
Compensated absences 7,422 - - - 7,422
Total current liabilities 109,885 134,419 316,815 64,449 625,568
Noncurrent liabilities:
Bonds and notes payable, net
of current portion - 388,933 - - 388,933
Compensated absences, net
of current portion 23,193 472288 47,590 99,723 217,794
Total noncurrent liabilities 23,193 436,221 47,590 99,723 606,727
Total liabilities 133,078 570,640 364,405 164,172 1,232,295
Net assets
Invested in capital assets, net
of related debt 234,823 2,265,358 - 707,145 3,207,326
Unrestricted - 72152 242,604 807,191 1,056,947
Total net assets $ 234,823 $ 2,272,510 $ 242,604 $ 1,514,336 $ 4,264,273
135
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the Year Ended June 30, 2012
Garbage and
Rubbish
Cemetery Golf Collection Recycling Totals
Operating revenues
Charges for services $ 240,394 $ 390,134 $ 1,459,101 $ 2,818,364 $ 4,907,993
Operating expenses
Personal services 468,069 400,277 845,848 1,794,354 3,508,548
Contractual and materials 1541741 288,031 712,152 1,224,178 2,379,102
Depreciation 16,190 93,294 - 22,548 132,032
Total operating expenses 639,000 781,602 1,558,000 3,041,080 6,019,682
Operating loss (398,606) (391,468) (98,899) (222,716) (1,111,689)
Nonoperating expenses
Interest expense and fees (28,770) (24) (248) (29,042)
Loss before transfers (398,606) (420,238) (98,923) (222,964) (1,140,731)
Transfers in 380,924 400,000 780,924
Transfers out (16,916) - (16,916)
Change in net assets (34,598) (20,238) (98,923) (222,964) (376,723)
Net assets, beginning of year 269,421 2,292,748 341,527 1,737,300 4,640,996
Net assets, end of year $ 234,823 $ 2,272,510 $ 242,604 $ 1,514,336 $ 4,264,273
136
CITY OF LANSING, MICHIGAN
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2012
Garbage and
Rubbish
Cemetery Golf Collection Recycling Totals
Cash flows from operating activities
Cash received from customers $ 240,394 $ 390,134 $ 1,509,613 $ 2,796,555 $ 4,936,696
Cash payments for goods and services (82,480) (291,686) (678,027) (1,133,571) (2,185,764)
Cash payments to employees (469,056) (408,742) (845,848) (1,795,846) (3,519,492)
Net cash used in operating activities (311,142) (310,294) (14,262) (132,862) (768,560)
Cash flows from noncapital
financing activities
Transfersin 380,924 400,000 780,924
Transfers out (16,916) - (16,916)
Net cash provided by noncapital
financing activities 364,008 400,000 764,008
Cash flows from capital and related
financing activities
Principal paid on bonds - (80,000) - - (80,000)
Interest paid on bonds (28,301) (24) (248) (28,573)
Net cash used in capital and related
financing activities - (108,301) (24) (248) (108,573)
Net increase (decrease)in cash and
cash equivalents 52,866 (18,595) (14,286) (133,110) (113,125)
Cash and cash equivalents:
Beginning of year 4,895 119,605 53,716 1,079,160 1,257,376
End of year $ 57,761 $ 101,010 $ 39,430 $ 946,050 $ 1,144,251
Reconciliation to statement of net assets
Cash and cash equivalents $ 200 $ 300 $ - $ - $ 500
Equity in pooled cash 57,561 100,710 39,430 946,050 1,143,751
$ 57,761 $ 101,010 $ 39,430 $ 946,050 $ 1,144,251
continued...
137
CITY OF LANSING, MICHIGAN
Combining Statement of Cash Flows (Concluded)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2012
Garbage and
Rubbish
Cemetery Golf Collection Recycling Totals
Reconciliation of operating loss to net
cash used in operating activities
Operating loss $ (398,606) $ (391,468) $ (98,899) $ (222,716) $ (1,111,689)
Adjustments to reconcile operating
loss to net cash used in
operating activities:
Depreciation expense 16,190 93,294 - 22,548 132,032
Changes in assets and liabilities:
Accounts receivable - - 50,512 (21,809) 28,703
Inventories 6,200 (698) (39,519) - (34,017)
Accounts payable (5,785) (2,889) (2,045) 33,943 23,224
Accrued interest payable (1,100) - (1,100)
Accrued payroll (987) (8,465) - (1,492) (10,944)
Due to other funds 60,000 50,000 110,000
Unearned revenues - (4,126) (1,352) - (5,478)
Compensated absences 11,846 5,158 27,041 56,664 100,709
Net cash used in operating activities $ (311,142) $ (310,294) $ (14,262) $ (132,862) $ (768,560)
concluded
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139
CITY OF LANSING, MICHIGAN
Internal Service Funds
Fleet Maintenance Fund - This fund accounts for the costs of maintaining the City's fleet of
vehicles and heavy equipment.
Fringe Benefits Fund - This fund accounts for the costs of the City's fringe benefits.
Engineering Fund - This fund accounts for the operations of the City's engineering department.
140
CITY OF LANSING, MICHIGAN
Combining Statement of Net Assets
Internal Service Funds
June 30, 2012
Fleet Fringe
Maintenance Benefits Engineering Totals
Assets
Current assets:
Equity in pooled cash $ 871,644 $ 43,726 $ 487,615 $ 1,402,985
Accounts receivable, net - 2,194,674 - 2,194,674
Inventories 904,071 - 904,071
Prepaids - 504,216 - 504,216
Total current assets 1,775,715 2,742,616 487,615 5,005,946
Noncurrent assets:
Restricted cash and cash equivalents 3,126,534 - - 3,126,534
Bond issuance costs, net 51,468 2,397 53,865
Capital assets not being depreciated 386,303 - 386,303
Capital assets being depreciated, net 4,548,974 1,778,140 6,327,114
Total noncurrent assets 8,113,279 - 1,780,537 9,893,816
Total assets 9,888,994 2,742,616 2,268,152 14,899,762
Liabilities
Current liabilities:
Accounts payable 489,270 1,223,948 330 1,713,548
Accrued interest payable 18,154 - 10,878 29,032
Accrued payroll 36,932 3,229 24,575 64,736
Claims incurred but not reported - 897,523 - 897,523
Due to other funds - 599,756 - 599,756
Current portion of:
Bonds and notes payable 135,000 - 160,000 295,000
Compensated absences 2,300 - 29,338 31,638
Total current liabilities 681,656 2,724,456 225,121 3,631,233
Noncurrent liabilities:
Bonds and notes payable, net of current portion 3,035,207 - 450,000 3,485,207
Compensated absences, net of current portion 249,560 18,160 424,891 692,611
Total noncurrent liabilities 3,284,767 18,160 874,891 4,177,818
Total liabilities 3,966,423 2,742,616 1,100,012 7,809,051
Net assets
Invested in capital assets, net of related debt 1,765,070 - 1,168,140 2,933,210
Restricted for debt retirement 3,126,534 - 3,126,534
Unrestricted 1,030,967 - 1,030,967
Total net assets $ 5,922,571 $ $ 1,168,140 $ 7,090,711
141
CITY OF LANSING, MICHIGAN
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended June 30, 2012
Fleet Fringe
Maintenance Benefits Engineering Totals
Operating revenues
Charges for services $ 5,230,826 $ 56,332,475 $ 3,162,852 $ 64,726,153
Operating expenses
Personal services 2,925,096 629,660 2,611,171 6,165,927
Purchase of goods and services 3,131,034 55,229,423 363,042 58,723,499
Depreciation 1,576,725 - 43,905 1,620,630
Total operating expenses 7,632,855 55,859,083 3,018,118 66,510,056
Operating income (loss) (2,402,029) 473,392 144,734 (1,783,903)
Nonoperating revenues (expenses)
Interest revenue 8,041 - - 8,041
Gain on sale of capital assets 123,066 123,066
Interest expense and fees (113,586) (38,639) (152,225)
Total nonoperating revenues (expenses) 17,521 (38,639) (21,118)
Change in net assets (2,384,508) 473,392 106,095 (1,805,021)
Net assets (deficit), beginning of year 8,307,079 (473,392) 1,062,045 8,895,732
Net assets, end of year $ 5,922,571 $ $ 1,168,140 $ 7,090,711
142
CITY OF LANSING, MICHIGAN
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2012
Fleet Fringe
Maintenance Benefits Engineering Totals
Cash flows from operating activities
Cash received from interfund services $ 5,230,826 $ 56,884,947 $ 3,162,852 $ 65,278,625
Cash payments for goods and services (2,790,668) (56,889,159) (381,204) (60,061,031)
Cash payments to employees (2,968,400) (629,660) (2,648,112) (6,246,172)
Net cash provided by (used in) operating activities (528,242) (633,872) 133,536 (1,028,578)
Cash flows from capital and related
financing activities
Proceeds from sale of capital assets 123,066 - 123,066
Acquisition and construction of capital assets (948,454) (948,454)
Principal paid (150,000) (150,000)
Interest paid (109,072) (37,985) (147,057)
Net cash used in capital and related
financing activities (934,460) (187,985) (1,122,445)
Cash flows from investing activities
Interest and dividends received 8,041 8,041
Net decrease in cash and cash equivalents (1,454,661) (633,872) (54,449) (2,142,982)
Cash and cash equivalents, beginning of year 5,452,839 677,598 542,064 6,672,501
Cash and cash equivalents, end of year $ 3,998,178 $ 43,726 $ 487,615 $ 4,529,519
Reconciliation to statement of net assets
Equity in pooled cash $ 871,644 $ 43,726 $ 487,615 $ 1,402,985
Restricted cash and cash equivalents 3,126,534 - - 3,126,534
$ 3,998,178 $ 43,726 $ 487,615 $ 4,529,519
continued...
143
CITY OF LANSING, MICHIGAN
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2012
Fleet Fringe
Maintenance Benefits Engineering Totals
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss) $ (2,402,029) $ 473,392 $ 144,734 $ (1,783,903)
Adjustments to reconcile operating loss to
net cash provided by (used in) operating activities:
Depreciation expense 1,576,725 - 43,905 1,620,630
Change in assets and liabilities:
Accounts receivable - 552,472 - 552,472
Inventories (73,830) - (73,830)
Prepaids - 255,157 - 255,157
Accounts payable 383,920 357,655 (221) 741,354
Accrued interest payable - - (2,675) (2,675)
Accrued payroll (43,304) (670,139) (36,941) (750,384)
Claims incurred but not reported (505,237) (505,237)
Due to other funds - (1,100,000) (1,100,000)
Compensated absences 30,276 2,828 (15,266) 17,838
Net cash provided by (used in) operating activities $ (528,242) $ (633,872) $ 133,536 $ (1,028,578)
concluded
144
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145
CITY OF LANSING, MICHIGAN
Agency Funds
Bail Bonds Fund - This fund is used to hold cash received by the District Court for bail bonds.
Garnishment, Indemnity Bond and Restitution Fund - This fund is used to hold cash received by the
District Court for garnishment payments until claimed, and to hold indemnity bonds deposited
relating to civil disputes until the Court rules on the case.
146
CITY OF LANSING, MICHIGAN
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2012
54-A District Court
Garnishment,
Bail Indemnity Bond
Bonds and Restitution Totals
Assets
Equity in pooled cash $ 46,676 $ 12,487 $ 59,163
Liabilities
Undistributed receipts $ 46,676 $ 12,487 $ 59,163
147
CITY OF LANSING, MICHIGAN
Combining Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2012
Beginning Ending
Balance Additions Deletions Balance
54-A District Court - Bail Bonds
Assets
Equity in pooled cash $ 61,374 $ 247,455 $ 262,153 $ 46,676
Liabilities
Undistributed receipts $ 61,374 $ 247,455 $ 262,153 $ 46,676
54-A District Court - Garnishment,
Indemnity Bond and Restitution
Assets
Equity in pooled cash $ 11,307 $ 133,873 $ 132,693 $ 12,487
Liabilities
Undistributed receipts $ 11,307 $ 133,873 $ 132,693 $ 12,487
Total - all agency funds
Assets
Equity in pooled cash $ 72,681 $ 381,328 $ 394,846 $ 59,163
Liabilities
Undistributed receipts $ 72,681 $ 381,328 $ 394,846 $ 59,163
148
STATISTICAL SECTION
149
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150
CITY OF LANSING, MICHIGAN
Statistical Section Table of Contents
This part of the City of Lansing's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Page
Financial Trends These schedules contain trend information to help the reader
understand how the City's financial performance and well-being
have changed over time. 152
Revenue Capacity These schedules contain information to help the reader assess
the factors affecting the City's ability to generate its property
taxes. 157
Debt Capacity These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt
and the City's ability to issue additional debt in the future. 161
Demographic and These schedules offer demographic and economic indicators to
Economic Information help the reader understand the environment within which the
City's financial activities take place and to help make
comparisons over time and with other governments. 166
Operating Information These schedules contain information about the City's operations
and resources to help the reader understand how the City's
financial information relates to the services the City provides and
the activities it performs. 168
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
151
CITY OF LANSING, MICHIGAN Table 1
Net Assets by Component (Accrual Basis of Accounting)
Last Ten Fiscal Years
2012 2� ' 200= -
(2)
Governmental activities
Invested in capital assets,net of related debt $ 163,723,249 $ 180,571,237 $ 186,536,428 $ 191,516,475 $ 187,054,852 $ 184,150,439 $ 190,243,447 $ 198,338,788 $ 197,530,605 $ 193,545,003
Restricted 14,524,584 14,777,571 14,304,689 17,139,090 34,554,539 37,642,784 36,706,345 33,900,657 6,370
Unrestricted (34,371,855) (18,840,717) (7,649,432) 6,589,790 (3,124,027) 2,776,006 514,601 1,632,040 15,331,622 20,363,235
Total governmental activities net assets $ 143,875,978 $ 176,508,091 $ 193,191,685 $ 215,245,355 $ 218,485,364 $ 224,569,229 $ 227,464,393 $ 233,871,485 $ 212,862,227 $ 213,914,608
Business-type activities
Invested in capital assets,net of related debt $ 209,584,457 $ 204,149,751 $ 194,854,140 $ 185,430,669 $ 178,526,049 $ 166,320,408 $ 161,324,071 $ 163,834,290 $ 138,830,169 $ 163,715,373
Restricted 12,382,060 13,080,302 19,917,341 19,454,812 30,892,739 35,777,715 35,945,848 39,493,526 718,828 1,039,093
Unrestricted 32,196,598 34,177,453 30,193,568 23,730,694 16,330,517 28,929,677 28,208,193 22,701,430 64,268,351 35,649,876
Total business-type activities net assets $ 254,163,115 $ 251,407,506 $ 244,965,049 $ 228,616,175 $ 225,749,305 $ 231,027,800 $ 225,478,112 $ 226,029,246 $ 203,817,348 $ 200,404,342
Primary government
Invested in capital assets,net of related debt $ 373,307,706 $ 384,720,988 $ 381,390,568 $ 376,947,144 $ 365,580,901 $ 350,470,847 $ 351,567,518 $ 362,173,078 $ 336,360,774 $ 357,260,376
Restricted 26,906,644 27,857,873 34,222,030 36,593,902 65,447,278 73,420,499 72,652,193 73,394,183 718,828 1,045,463
Unrestricted (2,175,257) 15,336,736 22,544,136 30,320,484 13,206,490 31,705,683 28,722,794 24,333,470 79,599,973 56,013,111
Total primary government net assets $ 398,039,093 $ 427,915,597 $ 438,156,734 $ 443,861,530 $ 444,234,669 $ 455,597,029 $ 452,942,505 $ 459,900,731 $ 416,679,575 $ 414,318,950
(1)no discretely presented component units shown
(2)in 2005 the City's definition of'restricted net assets"was changed to include assets in funds set up to account for
activities outside of the General Fund,for Governmental Activities,and to include restricted cash for debt retirement
for Business-type Activities.
152
CITY OF LANSING, MICHIGAN Table 2
Change in Net Assets(Accrual Basis of Accountin
Last Ten Fiscal Years
----------
Expenses
Governmental activities:
General government $ 30,841,776 $ 25,665,269 $ 30,326,671 $ 26,426,242 $ 28,901,548 $ 22,043,283 $ 34,375,762 $ 53,533,838 $ 53,353,559 $ 54,386,814
Public safety 82,369,004 83,546,997 84,566,215 71,236,947 76,211,756 62,570,888 60,047,271 38,668,349 41,292,750 36,998,022
Public works 33,144,303 26,355,375 29,252,516 37,588,680 40,032,746 40,517,063 31,790,944 30,670,483 22,118,173 23,740,767
Recreation and culture 8,889,142 8,245,451 7,312,480 7,298,385 7,677,083 6,198,462 7,881,212 5,464,143 7,979,953 8,055,078
Community development 13,623,946 12,825,028 9,715,087 6,378,286 6,382,336 6,232,406 7,124,491 6,996,000 8,387,559 9,647,696
Interest on long-term debt 1,949,825 2,116,535 2,229,288 1,803,125 1,481,658 1,658,708 1,197,851 1,033,078 2,041,758 2,333,691
Total governmental activities expenses 170,817,996 158,754,655 163,402,257 150,731,665 160,687,127 139,220,810 142,417,531 136,365,891 135,173,752 135,162,068
Business-type activities:
Sewage disposal system 26,836,597 26,444,741 24,931,075 26,247,188 27,382,736 24,725,229 21,706,537 20,631,611 20,864,079 19,350,186
Municipal parking system 9,491,376 9,896,498 8,305,095 8,353,063 10,188,065 10,275,379 18,403,163 10,151,018 9,196,910 8,840,334
Cemetery 639,000 755,766 659,584 689,979 675,672 692,510 753,151 802,949 828,073 688,571
Golf 810,372 846,817 869,003 927,200 1,072,505 1,358,008 1,398,963 1,446,615 1,620,669 1,583,711
Garbage and rubbish collection 1,558,024 1,515,600 1,451,059 1,547,372 1,436,642 1,372,266 1,412,620 1,421,617 1,321,760 1,288,178
Recycling 3,041,328 2,809,353 2,804,047 3,008,750 2,940,366 2,777,068 2,981,730 2,862,003 2,768,307 2,642,541
Potter Park Zoo - - - - (156,270) 2,968,236 2,718,759 2,690,943 2,542,065 2,228,724
Total business-type activities expenses 42,376,697 42,268,775 39,019,863 40,773,552 43,539,716 44,168,696 49,374,923 40,006,756 39,141,863 36,622,245
Total primary government expenses $ 213,194,693 $ 201,023,430 $ 202,422,120 $ 191,505,217 $ 204,226,843 $ 183,389,506 $ 191,792,454 $ 176,372,647 $ 174,315,615 $ 171,784,313
Program revenues
Governmental activities:
Charges for services:
General government $ 6,428,110 $ 6,742,306 $ 6,565,263 $ 5,188,510 $ 5,938,911 $ 6,251,032 $ 6,416,850 $ 6,264,142 $ 4,686,901 $ 4,611,471
Public safety 8,525,524 8,975,173 8,589,146 9,817,421 12,705,181 13,014,934 13,087,372 12,400,853 11,682,187 11,031,998
Public works 2,797,443 2,449,606 2,788,112 4,565,013 4,364,525 3,805,739 3,891,646 2,646,007 2,713,258 2,627,959
Recreation and culture 557,609 685,120 587,906 1,217,445 1,556,260 1,259,373 1,405,584 1,598,968 1,581,607 1,472,203
Community development 67,344 122,326 69,250 50,132 66,308 66,161 66,486 66,788 - -
Operating grants and contributions 31,928,983 30,154,681 27,515,892 26,462,211 20,356,292 16,524,178 16,158,496 16,673,481 15,746,181 15,968,081
Capital grants and contributions 260,656 189,414 3,109,410 2,571,741 2,531,974 2,179,870 3,659,169 3,479,536 3,033,891 1,734,008
Total governmental activities program revenues 50,565,669 49,318,626 49,224,979 49,872,473 47,519,451 43,101,287 44,685,603 43,129,775 39,444,025 37,445,720
Business-type activities:
Charges for services:
Sewage disposal system 29,915,799 29,205,945 28,907,772 27,446,304 28,023,322 26,926,202 26,867,610 26,890,756 26,529,842 26,045,574
Municipal parking system 6,858,606 7,539,179 7,396,219 7,539,611 10,090,566 10,838,270 10,289,830 9,628,690 7,510,354 7,642,684
Cemetery 240,394 225,947 226,973 248,314 218,688 264,255 237,564 230,716 226,631 199,760
Golf 390,134 382,546 438,315 448,067 607,922 754,995 890,190 929,266 951,923 997,177
Garbage and rubbish collection 1,459,101 1,507,577 1,677,428 1,486,531 1,617,717 1,378,562 1,295,053 1,322,111 1,315,413 1,189,489
Recycling 2,818,364 2,609,423 2,651,309 2,945,061 3,039,089 2,903,092 2,816,277 2,636,002 2,115,917 2,138,308
Potter Park Zoo - - - - (115) 553,999 471,703 558,654 505,666 436,199
Operating grants and contributions 1,331,737 4,456,708 1,535,907 1,541,913 - - - - - -
Capital grants and contributions 2,683,657 1,439,044 11,928,108 60,318 196,317 183,012 1,368,773 731,575 93,207 914,570
Total business-type activities program revenues 45,697,792 47,366,369 54,762,031 41,716,119 43,793,506 43,802,387 44,237,000 42,927,770 39,248,953 39,563,761
Total primary government program revenues $ 96,263,461 $ 96,684,995 $ 103,987,010 $ 91,588,592 $ 91,312,957 $ 86,903,674 $ 88,922,603 $ 86,057,545 $ 78,692,978 $ 77,009,481
Net(expenses)/revenues
Governmental activities $(120,252,327) $(109,436,029) $(114,177,278) $(100,859,192) $(113,167,676) $ (96,119,523) $ (97,731,928) $ (93,236,116) $ (95,729,727) $ (97,716,348)
Business-type activities 3,321,095 5,097,594 15,742,168 942,567 253,790 (366,309) (5,137,923) 2,921,014 107,090 2,941,516
Total primary government net expense $(116,931,232) $(104,338,435) $ (98,435,110) $ (99,916,625) $(112,913,886) $ (96,485,832) $(102,869,851) $ (90,315,102) $ (95,622,637) $ (94,774,832)
continued...
153
CITY OF LANSING, MICHIGAN Table 2
Change in Net Assets(Accrual Basis of Accountin
Last Ten Fiscal Years
----------
General revenues and other changes in net assets
Governmental activities:
Taxes:
Property taxes $ 33,506,860 $ 37,233,590 $ 39,010,960 $ 39,141,928 $ 38,607,761 $ 38,371,105 $ 37,506,017 $ 36,181,408 $ 40,354,088 $ 39,571,155
Income taxes 27,943,070 28,699,749 27,408,443 29,312,762 31,168,012 28,209,913 27,032,176 27,435,047 27,437,494 29,099,955
Unrestricted grants and contributions 26,441,961 27,254,574 25,847,423 27,318,313 28,180,799 27,258,536 26,817,633 26,355,710 26,338,413 28,198,831
Investment earnings 69,265 89,735 246,495 978,034 1,706,572 2,483,162 1,634,608 715,608 312,069 725,936
Miscellaneous 123,066 108,601 75,094 32,310 - - 774,822 104,563 2,903,792 1,838,895
Transfers (464,008) (633,814) (464,807) (509,728) 7,420,667 (3,098,357) (3,132,465) (2,123,435) (2,668,510) (4,130,144)
Total governmental activities 87,620,214 92,752,435 92,123,608 96,273,619 107,083,811 93,224,359 90,632,791 88,668,901 94,677,346 95,304,628
Business-type activities:
Investment earnings 271,067 689,883 141,899 413,850 1,883,034 2,815,480 1,453,076 1,298,407 249,855 294,425
Miscellaneous (1,300,561) 21,166 - 725 5,348 2,160 1,248 23,736 387,551 343,174
Transfers 464,008 633,814 464,807 509,728 (7,420,667) 3,098,357 3,132,465 2,123,435 2,668,510 3,717,932
Total business-type activities (565,486) 1,344,863 606,706 924,303 (5,532,285) 5,915,997 4,586,789 3,445,578 3,305,916 4,355,531
Total primary government $ 87,054,728 $ 94,097,298 $ 92,730,314 $ 97,197,922 $ 101,551,526 $ 99,140,356 $ 95,219,580 $ 92,114,479 $ 97,983,262 $ 99,660,159
Changes in net assets
Governmental activities $ (32,632,113) $ (16,683,594) $ (22,053,670) $ (4,585,573) $ (6,083,865) $ (2,895,164) $ (7,099,137) $ (4,567,215) $ (1,052,381) $ (2,411,720)
Business-type activities 2,755,609 6,442,457 16,348,874 1,866,870 (5,278,495) 5,549,688 (551,134) 6,366,592 3,413,006 7,297,047
Total primary government $ (29,876,504) $ (10,241,137) $ (5,704,796) $ (2,718,703) $ (11,362,360) $ 2,654,524 $ (7,650,271) $ 1,799,377 $ 2,360,625 $ 4,885,327
(1)No discretely presented component units shown
154
CITY OF LANSING, MICHIGAN Table 3
Fund Balances, Governmental Funds(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
(2) (1)
General fund
Nonspendable $ 92,538 $ 171,586 $ $ $ $ $ $ $ $
Restricted 16,256 41,129
Committed 65,373 178,081
Unassigned 5,198,032 4,939,691
Reserved - - 102,732 1,320,375 1,765,288 1,848,021 2,443,224 2,482,589 1,324,109 945,386
Unreserved - - 389,061 3,755,862 5,465,164 5,036,129 4,634,961 4,709,909 5,606,958 5,985,681
Total general fund 5,372,199 5,330,487 491,793 5,076,237 7,230,452 6,884,150 7,078,185 7,192,498 6,931,067 6,931,067
All other governmental funds
Nonspendable $ 2,852,004 $ 3,006,507 $ - $ - $ - $ - $ - $ - $ - $ -
Restricted 5,566,421 7,412,008
Committed 4,109,131 4,908,740
Unassigned(deficit) (543,774) (371,285) - - - - - - - -
Reserved 1,177,998 324,366 365,351 2,544,339 613,533 2,139,438 3,688,795 4,541,303
Unreserved,reported in:
Special revenue funds 12,029,680 13,394,485 14,716,755 14,523,146 18,798,291 17,635,170 17,950,570 17,933,354
Capital projects funds 11,614,644 12,010,219 17,862,441 18,978,360 15,717,371 12,563,759 15,293,862 16,967,327
Debt service funds 126,434 186,636 256,144 144,518 88,826 4,400 - -
Permanent funds 1,649,550 1,630,098 1,609,992 1,596,939 1,577,150 1,557,890 - -
Total all other governmental funds 11,983,782 14,955,970 26,598,306 27,545,804 34,810,683 37,787,302 36,795,171 33,900,657 36,933,227 39,441,984
Total all governmental funds $ 17,355,981 $ 20,286,457 $ 27,090,099 $ 32,622,041 $ 42,041,135 $ 44,671,452 $ 43,873,356 $ 41,093,155 $ 43,864,294 $ 46,373,051
(1)In 2005 the City's definition for Permanent Funds fund balance changed to"unreserved"due to the nature of the funds
being set up as a reserved fund
(2)The City implemented GASB 54 for the Fiscal Year Ended June 30,2011. Prior years were not restated retroactively.
155
CITY OF LANSING, MICHIGAN Table 4
Changes in Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
2012 201Q 2009
Revenues
Property taxes $ 33,583,448 $ 37,371,885 $ 39,279,343 $ 39,258,893 $ 38,775,722 $ 38,681,928 $ 37,957,773 $ 36,527,417 $ 40,354,088 $ 39,426,786
Income taxes 27,943,070 28,699,749 27,408,443 29,312,762 31,168,012 28,209,913 27,032,176 27,497,542 27,413,270 29,159,482
Licenses and permits 1,538,325 1,598,804 1,414,906 1,325,119 1,429,075 1,101,550 860,647 791,655 814,989 925,455
Intergovernmental 41,431,793 40,304,785 39,137,217 38,998,039 38,556,616 34,699,908 34,964,225 35,624,372 36,312,111 36,183,631
Charges for services 18,676,398 18,606,304 18,323,158 20,355,642 19,116,593 18,415,612 19,436,267 17,931,572 16,745,202 15,522,204
Fines and forfeits 2,884,328 3,325,728 4,579,175 4,143,000 4,090,397 4,349,642 4,515,951 4,351,977 4,870,577 5,645,029
Interest and rents 63,571 88,516 249,464 1,196,559 1,836,485 2,607,388 1,710,674 720,707 357,382 823,308
Contributions 12,369,733 11,821,388 10,606,368 10,372,056 10,894,573 9,980,854 9,385,831 8,966,289 8,744,295 9,255,742
Donations from private sources 5,000 - 9,000 44,000 326,768 114,954 549,055 126,182 22,031 376,793
Otherrevenue 400,074 504,856 473,123 1,054,209 331,248 1,019,476 1,082,283 1,320,064 1,285,903 779,115
Total revenues 138,895,740 142,322,015 141,480,197 146,060,279 146,525,489 139,181,225 137,494,882 133,857,777 136,919,848 138,097,545
Expenditures
General government 25,038,589 26,396,516 27,839,564 28,951,805 29,209,458 28,905,058 34,956,037 55,746,807 54,420,735 53,381,289
Public safety 66,161,872 70,397,235 70,820,184 70,082,462 67,715,160 65,218,515 59,143,629 38,121,596 40,145,137 39,321,853
Public works 6,225,177 6,002,823
Highways and streets 8,589,298 8,494,233 14,506,982 14,723,311 14,860,390 13,501,747 10,879,004 10,467,860 9,216,004 9,776,628
Recreation and culture 6,996,562 7,464,193 8,127,700 8,452,768 8,038,290 7,676,600 7,509,183 5,517,980 6,229,014 6,555,043
Other functions 17,999,264 15,675,003 15,182,675 12,599,072 11,805,843 9,847,925 8,259,415 8,520,848 6,971,380 5,725,184
Capital outlay 6,466,084 9,956,103 14,781,728 14,855,863 16,228,127 20,001,659 13,306,810 12,614,723 11,917,608 15,241,548
Debt service:
Interest 1,836,218 3,210,220 3,270,068 1,801,394 1,607,703 1,285,436 1,145,588 1,187,673 2,331,276 2,625,499
Principal 3,448,080 2,070,552 2,165,237 4,743,146 4,721,581 3,875,909 3,244,879 3,592,766 6,874,234 6,298,264
Issuance costs - 48,804 - - - - - - - -
Total expenditures 142,761,144 149,715,682 156,694,138 156,209,821 154,186,552 150,312,849 138,444,545 135,770,253 138,105,388 138,925,308
Excess of revenues over(under)expenditures (3,865,404) (7,393,667) (15,213,941) (10,149,542) (7,661,063) (11,131,624) (949,663) (1,912,476) (1,185,540) (827,763)
Other financing sources(uses)
Proceeds from borrowing - 2,470,000 10,146,117 - 4,052,979 15,190,077 6,087,507 1,784,465 570,000 1,500,000
Proceeds from sale of capital assets 1,398,936 1,210,046 689 1,587,216 - - 774,822 74,565 799,497 99,434
Payment to escrow agent - (2,456,207) - - - - - -
Insurance proceeds - - 120,960 - - - - - -
Transfers in 7,893,879 9,602,095 16,181,590 11,601,871 13,507,521 6,908,259 8,170,998 8,274,929 13,628,444 14,083,970
Transfers out (8,357,887) (10,235,909) (16,646,397) (12,579,599) (12,529,754) (10,168,616) (11,303,463) (10,398,364) (16,321,156) (18,802,923)
Total other financing sources(uses) 934,928 590,025 9,681,999 730,448 5,030,746 11,929,720 3,729,864 (264,405) (1,323,215) (3,119,519)
Net change in fund balance $ (2,930,476) $ (6,803,642) $ (5,531,942) $ (9,419,094) $ (2,630,317) $ 798,096 $ 2,780,201 $ (2,176,881) $ (2,508,755) $ (3,947,282)
Debt service as a percentage of
noncapital expenditures 3.8% 3.7% 3.9% 4.5% 4.6% 4.0% 3.4% 3.8% 7.1% 6.9%
156
CITY OF LANSING, MICHIGAN Table 5
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal Total Assessed
Year Personal Total Taxable Direct Estimated Value as a
Ended Residential Commercial Industrial Property Assessed Tax Actual Percentage of
June 30, Property Property Property Valuation Valuation Rate Value Actual Value
2003 $ 1,088,980,029 $ 661,752,030 $ 157,367,277 $ 303,247,208 $ 2,211,346,544 $15.93 $4,422,693,088 50.0%
2004 1,135,019,090 686,609,099 178,744,095 287,439,600 2,287,811,884 15.93 4,575,623,768 50.0%
2005 1,196,695,728 702,969,958 175,906,035 288,421,700 2,363,993,421 15.88 4,727,986,842 50.0%
2006 1,266,935,505 730,413,466 180,564,805 251,293,200 2,429,206,976 15.88 4,858,413,952 50.0%
2007 1,354,989,247 728,343,561 195,703,073 221,858,408 2,500,894,289 15.88 5,001,788,578 50.0%
2008 1,437,051,392 765,233,437 192,915,386 223,995,750 2,619,195,965 15.83 5,238,391,930 50.0%
2009 1,479,089,611 719,463,319 254,539,254 205,034,000 2,658,126,184 15.83 5,316,252,368 50.0%
2010 1,480,467,389 713,807,797 248,288,931 220,228,175 2,662,792,292 15.70 5,325,584,584 50.0%
2011 1,407,920,589 624,406,132 215,099,428 199,543,400 2,446,969,549 15.70 4,893,939,098 50.0%
2012 1,387,390,250 639,535,400 87,432,000 183,233,681 2,297,591,331 15.70 4,595,182,662 50.0%
(1) tax rates are per $1,000 of assessed value
Source: Lansing City Assessor
157
CITY OF LANSING, MICHIGAN Table 6
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per$1,000 of assessed value)
Fiscal City Direct Rates Overlapping Rates
Year
Ended Tax Operating Service City County School State College Other
June 30, Year Millage Millage Millage Millage Millage Education Millage Millage Total
2003 2002 14.90 1.03 15.93 8.11 19.01 6.00 3.87 8.34 61.26
2004 2003 14.90 1.03 15.93 8.11 19.06 5.00 3.85 8.89 60.84
2005 2004 14.90 .98 15.88 8.10 20.65 6.00 3.84 8.83 63.30
2006 2005 14.90 .98 15.88 8.18 20.40 6.00 3.81 8.78 63.04
2007 2006 14.95 .93 15.88 8.72 20.32 6.00 3.81 9.15 63.88
2008 2007 14.95 .88 15.83 9.41 20.18 6.00 3.81 8.15 63.38
2009 2008 15.01 .82 15.83 10.83 20.15 6.00 3.81 9.04 65.66
2010 2009 15.44 .26 15.70 8.84 19.95 6.00 3.81 9.93 64.23
2011 2010 15.44 .26 15.70 8.84 19.95 6.00 3.81 9.93 64.23
2012 2011 15.44 .26 15.70 8.84 21.44 6.00 3.81 9.96 65.75
(1)rates for Ingham County and Lansing School District only
(2)since 1995 this is the Non-homestead rate
(3)includes Intermediate School,Airport Authority, Capital
Area Transit Authority and Capital Area District Library(began in FY 98)
Source: Lansing City Treasurer
158
CITY OF LANSING, MICHIGAN Table 7
Profile of Ten Largest Ad Valorem Taxpayers
Current Year and Nine Years Ago
2012 2003
Percentage Percentage
Taxable of Total Total of Total
Assessed Assessed Assessed Assessed
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
General Motors LLC $81,468,000 1 4.01%
Jackson National Life Insurance Company 32,771,500 2 1.61% $ 27,653,500 2 1.25%
Consumers Energy 22,283,300 3 1.10% 21,326,600 5 0.96%
Demmer Corporation 14,898,600 4 0.73%
ComCast of Michigan L L C 11,644,000 5 0.57%
Lansing Retail Center LLC 10,661,000 6 0.52% 14,750,900 6 0.67%
Sprint Spectrum L.P. 9,496,000 7 0.47% 11,877,000 9 0.54%
Heart of the City Assoc 7,271,400 8 0.36% 11,438,900 10 0.52%
Emergency Biodefense Operations 6,881,400 9 0.34%
Quality Dairy Co#17 6,759,700 10 0.33%
General Motors Corp. 228,595,000 1 10.34%
Trappers Cove LTD Partners 12,881,700 8 0.58%
Accident Fund Company 13,108,100 7 0.59%
Michigan Strategic Fund 23,811,500 4 1.08%
525 Redevco Inc 26,854,700 3 1.21%
Data furnished from City of Lansing Assessor
formerly Capital Outlook LLC
159
CITY OF LANSING, MICHIGAN Table 8
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy Total Collections to Date
Fiscal Year Taxes Levied Current Percent of Delinquent Total Collections
Ended for the Tax Levy Tax Tax as Percent
June 30, Fiscal Year Collection Collected Collection Collection of Levy
2003 $ 37,310,656 $ 37,041,662 99.28% $ 101,223 $ 37,142,885 99.55%
2004 38,267,514 37,826,436 98.85% 59,200 37,885,636 99.00%
2005 40,051,303 39,429,093 98.45% 140,123 39,569,216 98.80%
2006 41,261,397 41,022,735 99.42% 83,419 41,106,154 99.62%
2007 42,627,042 42,516,696 99.74% 107,322 42,624,018 99.99%
2008 44,286,657 44,125,517 99.64% 144,587 44,270,104 99.96%
2009 45,567,556 45,468,639 99.78% 72,779 45,541,418 99.94%
2010 44,997,919 44,844,495 99.66% 33,012 44,877,507 99.73%
2011 41,460,916 41,375,354 99.79% 24,416 41,399,770 99.85%
2012 39,948,762 39,863,393 99.79% 19,647 39,883,040 99.84%
Note: Amounts are net of chargebacks from the County Tax Revolving Funds for taxes still delinquent after three years.
Note: Delinquent Tax Collection represents amounts received in the indicated fiscal year
Source: City of Lansing Treasurer
160
CITY OF LANSING, MICHIGAN Table 9
Ratios of Outstanding Debt by Type -
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
General Special Installment General Total Percentage
Fiscal Obligation Assessment Purchase Obligation Revenue Primary of Personal
Year,= Bonds I Debt Agreements E Loans 1 Bonds Bonds E j Loans Government Income Population(1)
2003 $ 29,553,133 $ 65,000 $ 11,043,847 $ 534,329 $ 129,302,048 $ 29,230,000 $ - $ 199,728,357 9.37%1" $ 1,677 119,100
2004 25,078,133 45,000 9,858,752 408,283 158,303,225 55,375,000 4,179,649 253,248,042 11.88%�') 2,126 119,100
2005 13,320,000 35,000 8,396,154 1,543,195 165,029,785 51,710,000 4,180,000 244,214,134 11.46%1" 2,050 119,100
2006 17,245,000 25,000 7,351,126 1,409,844 168,824,004 47,905,000 4,180,000 246,939,974 11.59%�') 2,073 119,100
2007 19,845,000 10,000 15,721,844 1,772,049 165,173,386 43,955,000 4,180,000 250,657,280 11.77%1" 2,105 119,100
2008 20,624,100 - 14,037,885 1,534,822 182,419,608 41,125,000 4,180,000 263,921,415 12.40%�') 2,216 119,100
2009 17,640,000 12,394,082 1,290,479 194,429,701 38,285,000 4,180,000 268,219,262 12.60%1" 2,252 119,100
2010 26,152,000 10,925,689 1,038,804 202,818,098 35,445,000 4,180,000 280,559,591 13.18% `� 2,356 119,100
2011 27,687,000 9,564,693 779,580 200,539,634 32,565,000 1,574,209 272,710,116 12.29% ' 2,386 114,297
2012 25,727,000 8,193,616 512,577 192,125,645 29,525,000 1,637,177 257,721,015 11.41% 2,255 114,297
(1)population per decennial census by the U.S.Census Bureau
(2)personal income data comes from U.S.Census Bureau,American Community Survey 2005
(3)personal income data comes from U.S.Census Bureau,American Community Survey 2009
161
CITY OF LANSING, MICHIGAN Table 10
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Debt Payable Ratio of
Fiscal Debt From Enterprise Net Bonded Net
Year Service Revenues Debt to Bonded
Ended Taxable Gross Bonded Monies Et Special Net Bonded Taxable Debt per
June 30, Population(1)(5) Value(3) Debt(2)(4) Available Assessments Debt Value Capita
2003 119,128 $ 2,211,346,544 $ 140,043,000 $ 7,524 $ 110,419,899 $ 29,615,577 0.0134 $ 249
2004 119,128 2,287,811,884 166,581,000 42,852 145,505,724 21,032,424 0.0092 177
2005 119,128 2,363,993,421 178,349,785 4,400 165,029,785 13,315,600 0.0056 112
2006 119,128 2,429,206,976 186,094,004 88,826 168,849,004 17,156,174 0.0071 144
2007 119,128 2,500,894,289 185,028,386 309,363 165,183,386 19,535,637 0.0078 164
2008 119,128 2,619,195,965 203,043,708 256,144 182,419,608 20,367,956 0.0078 171
2009 119,128 2,658,126,184 212,069,701 186,636 194,429,701 17,453,364 0.0066 147
2010 119,128 2,662,792,292 228,970,098 126,434 202,818,098 26,025,566 0.0098 218
2011 114,297 2,446,969,549 230,666,786 46,029 200,539,634 30,081,123 0.0123 263
2012 114,297 2,297,591,331 217,852,645 - 192,125,645 25,727,000 0.0112 225
(') Source: 2000 Census by the U.S. Census Bureau
(2) Includes all general obligation debt and special assessment debt with governmental obligation
(3) The tax assessment day is December 31 prior to beginning of fiscal year
(4) The amount reported in 2010 has been changed for 2011 presentation
Source 2010 Census by the U.S. Census Bureau; used in 2011 and 2012
162
CITY OF LANSING, MICHIGAN Table 11
Direct and Overlapping Governmental Activities Debt
As of June 30, 2012
Net General
Obligation
Bonded Amount
Name of Debt %Applicable Applicable
Governmental Unit Outstanding to City to City
Net direct - City $ 25,726,900 (1) 100.00% $ 25,726,900
Share of County-issued bonds
Joint Building Authority $ 3,906,820 100.00% $ 3,906,820
Drain Commission 305,725 100.00% 305,725
$ 4,212,545
Overlapping debt
Eaton Intermediate School District 1,130,000 0.57% $ 6,441
Ingham Intermediate School District 2,334,000 23.84% 556,426
Waverly School District 30,315,000 0.23% 69,725
Lansing School District 52,200,000 81.73% 42,663,060
East Lansing School District 60,364,059 3.64% 2,197,252
Holt School District 85,131,722 2.47% 2,102,754
Ingham County 53,185,958 27.65% 14,705,917
Eaton County 34,219,753 1.70% 581,736
Clinton County 6,768,396 0.29% 19,628
Lansing Community College 49,865,000 19.76% 9,853,324
Okemos School District 17,353,000 2.68% 465,060
Mason School District 19,385,000 0.11% 21,324
Grand Ledge School District 65,880,000 1.21% 797,148
Total overlapping debt 74,039,794
Total direct and overlapping debt $ 103,979,239
Excludes Pollution Abatement Bonds and Revenue Bonds
Overlapping debt is the portion of other public debt for which a City taxpayer is liable
in addition to the direct debt of the City
Source: Municipal Advisory Council of Michigan
163
CITY OF LANSING, MICHIGAN Table 12
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2012
Assessed value,real and personal property $2,297,591,331
Assessed value equivalents 39,105,042
Total valuation 2,336,696,373
Legal debt margin
Debt limitation- 10 percent of total valuation 233,669,637
Debt applicable to limit
Total City Bonded Debt 247,377,645
City Share:
Drain Commission-County Issued 305,725
Joint Building Authority-County Issued 3,906,820
Brownfield Redevelopment Authority 415,000
TIF Supported Bonds 14,453,339
266,458,529
Less:
Michigan Transportation(MTF)Bonds (5,375,000)
Sewage Disposal Revenue Bonds (29,525,000)
Pollution Abatement(CSO Project)Bonds (139,200,954) (174,100,954)
Total net debt applicable to limit 92,357,575
Legal debt margin $ 141,312,062
W 2003 2004 �L 2006 2007 2008 2009 '1011 2012
Debt limit $ 273,340,110 $ 289,486,027 $ 302,811,105 $ 314,307,611 $ 324,987,531 $ 318,810,868 $ 298,581,799 $ 298,052,683 $ 268,975,768 $ 233,669,637
Total net debt applicable to limit 70,893,614 87,171,139 75,882,359 103,095,986 84,276,312 87,966,365 79,513,756 98,368,804 100,923,863 92,357,575
Legal debt margin $ 202,446,496 $ 202,314,888 $ 226,928,746 $ 211,211,625 $ 240,711,219 $ 230,844,503 $ 219,068,043 $ 199,683,880 $ 168,051,905 $ 141,312,062
Total net debt applicable to the limit
as a percentage of debt limit 25.94% 30.11% 25.06% 32.80% 25.93% 27.59% 26.63% 33.00% 37.52% 39.52%
164
CITY OF LANSING, MICHIGAN Table 13
Pledged-Revenue Coverage
Last Ten Fiscal Years
Sewage Disposal Bonds
Direct Net Revenue
Gross Operating Available for Debt Service Requirements
Revenue Expenses(') Debt Service Principal Interest Total Coverage(2)
2003 $ 26,963,775 $ 11,209,711 $ 15,754,064 $ 3,320,000 $ 1,723,253 $ 5,043,253 3.12
2004 26,196,518 11,543,509 14,653,009 3,475,000 1,723,253 5,198,253 2.82
2005 26,601,646 12,775,001 13,826,645 3,715,000 1,786,328 5,501,328 2.51
2006 27,932,464 12,867,761 15,064,703 3,805,000 2,036,736 5,841,736 2.58
2007 29,292,698 13,494,658 15,798,040 3,950,000 2,152,990 6,102,990 2.59
2008 29,356,299 15,997,449 13,358,850 2,830,000 2,002,400 4,832,400 2.76
2009 27,759,684 14,206,961 13,552,723 2,840,000 1,900,000 4,740,000 2.86
2010 28,613,004 12,358,472 16,254,532 2,840,000 1,803,425 4,643,425 3.50
2011 29,865,648 12,616,100 17,249,548 2,925,000 1,621,221 4,546,221 3.79
2012 30,178,511 12,562,663 17,615,848 3,160,000 1,448,856 4,608,856 3.82
Operating expenses less depreciation
Coverage is defined as net revenue available for debt service divided by
debt service requirements
165
CITY OF LANSING, MICHIGAN Table 14
Demographic and Economic Statistics
Last Ten Fiscal Years
Per capita
Personal Personal Median School Unemployment Labor
Year Population(') Income Income(z) Age(3) Enrollment(4) %Rate(5) Force(5)
2003 119,100 $ 2,132,604,600 $ 17,906 32 17,600 7 65,325
2004 119,100 2,131,893,732 17,900 32 16,927 7.0 63,750
2005 119,100 2,131,183,101 17,894 32.20 16,201 9.0 68,041
2006 119,100 2,130,460,800 17,888 32.36 16,014 8.4 67,023
2007 119,100 2,129,750,646 17,882 33 15,178 9 66,224
2008 119,100 2,129,040,730 17,876 33 14,475 10.2 65,833
2009 119,100 2,128,331,049 17,870 33 14,482 16.2 66,822
2010 119,100 2,127,621,606 17,864 33 14,098 15.0 64,074
2011 114,297 2,218,237,360 19,408 30 13,465 13.1 63,130
2012 114,297 2,259,194,502 19,766 32 13,236 11.3 63,374
Source: U.S. Census Bureau
�L Source: personal income for 2000 and 2005 from the U.S.Census Bureau; other years were extrapolated
from 2000 and 2005
Source: 2000 data from U.S. Census Bureau. Data for other years estimated by City of Lansing Finance Department
(4)Source: Lansing School District
(')Source: Michigan Department of Career Development: Employment Service Agency- Labor Market Information
166
CITY OF LANSING, MICHIGAN Table 15
Principal Employers
Current Year and Six Years Ago
2012 2006
Percentage Percentage
of Total City of Total City
Employer Employees(') Rank Employment(2) Employees(') Rank Employment
State of Michigan 13,700 1 6.23% 14,355 1 6.09%
Michigan State University 10,725 2 4.88% 10,500 2 4.45%
Sparrow Health System 5,735 3 2.61% 6,000 4 2.54%
General Motors 5,522 4 2.51% 6,300 3 2.67%
Liberty National Life Insurance 5,000 5 2.28%
Lansing Community College 2,990 6 1.36% 3,180 5 1.35%
Ingham Regional Medical Center 2,400 7 1.09% 2,500 6 1.06%
Meijer 1,880 8 0.86% 2,000 8 0.85%
Lansing School District 1,613 9 0.73% 2,106 7 0.89%
Southern-Owners Insurance 1,500 10 0.68%
Auto Owners Insurance 1,500 9 0.64%
Peckham, Inc. 1,400 10 0.59%
Greater Lansing metropolitan area employment 219,761 235,844
Data is representative of the Greater Lansing Region
z Source: Michigan Department of Career Development: Employment Service Agency- Labor Market Information
Data prior to 2006 is unavailable
167
CITY OF LANSING, MICHIGAN Table 16
Full-time Equivalent City Governmental Employees by Function/Program
June 30, 2012
Function/Program 2012 2011 2010 2009 2008 2007 2006
General government
City council 10 11 11 11 11 11 11
Mayor's office 5 5 5 5 5 5 7
City clerk 5 6 7 7 7 7 7
54-A district court 48 50 53 53 53 55 55
City attorney's office 10 11 12 12 12 12 11
City TV 2 2 2 2 2 2 2
Internal auditor 1 1 1 1 1 1 2
Human resources 9 11 12 13 14 14 (1) 12
Finance
Accounting/Budget/Purchasing 13 14 16 17 16 18 (1) 21
Tax services 21 22 24 25 26 29 30
Information technology 10 14 15 17 18 18 18
Property management 18 20 21 23 24 26 (3) 28
Fleet management 27 29 30 31 33 37 (2) 20
89 99 106 113 117 128 117
Planning Et neighborhood development
Administration 2 2 2 2 2 2 2
Code compliance 15 16 16 16 17 19 15
Building safety 13 15 15 15 15 16 17
Planning 4 5 5 4 5 7 7
Development 9 9 9 10 10 10 11
Parking Et transportation 20 20 (5) 40 41 41 43 49
63 66 87 88 90 97 101
Police 260 327 344 342 341 338 339
Fire 179 207 218 219 219 219 220
Public services
Administration Et engineering 21 21 17 18 18 18 19
Operations Et maintenance 121 135 (5) 110 113 113 119 122
Service garage - - - - - (2) 17
Wastewater 41 41 44 50 50 51 61
183 197 171 181 181 188 219
Human relations Et community services 5 5 5 6 8 9 9
Parks Et recreation
Administration Et design 5 5 7 7 8 8 9
Grounds Et forestry (5) 27 31 32 32 (2) 32
Leisure Et special recreation 10 12 15 19 17 19 (3) 20
Cemeteries 1 1 3 4 4 5 5
Golf/ice arena 3 4 4 4 4 4 6
Zoo(4) - - - - 18 19
19 22 56 65 65 86 91
888 1,020 1,090 1,118 1,126 1,172 1,203
Source: The City of Lansing
In FY 2007, the following restructuring of departments occurred:
(1)A payroll position was transferred from Finance to Human Resources
(2)Operations of the City's three fleet garages was consolidated in Finance
(3)Four custodial positions were transferred from Parks 8 Recreation to Finance
(4)On July 1,2007,Potter Park Zoo employees were transferred to Ingham County
In FY 2011, the following restructuring of departments occurred:
(5)Grounds Maintenance positions were moved from Parks 8 Recreation and Planning&Neighborhood Development and consolidated with Public Service staff.
168
CITY OF LANSING, MICHIGAN Table 17
Operating Indicators by Function/Program
Fisical Year Ended June 30, 2012
Function/Program 2012 2011 2010 2009 2008 2007 2006
Public safety
Fire department responses 17,093 16,974 16,659 15,852 15,780 15,267 14,869
EMS related 14,851 14,628 14,398 13,447 13,151 12,779 12,152
Fire related 2,242 2,346 2,261 2,405 2,629 2,488 2,117
Police department responses 74,058 78,112 87,724 89,958 87,634 97,466 87,551
Arrests 8,043 8,858 11,644 11,559 12,810 13,260 7,479
Traffic violations 8,829 15,585 18,297 20,122 25,398 29,047 30,948
Public works
Potholes filled 30,116 32,918 24,945 43,601 40,790 28,122 36,522
Streets resurfaced(miles) 5.01 8.99 20.70 16.20 20.92 22.11 27.16
Recreation
Recreation participation 66,836 66,254 70,529 39,060 37,783 ' 41,069 38,878
Pavilion rentals 198 161 288 315 341 254 255
Sewage disposal
Average amount processed daily(gal) 12.82 million 12.83 million 15.01 million 18.15 million 16.73 million 16.00 million 15.00 million
Parking system
Average number of monthly permits 2,735 3,122 3,480 3,783 4,059 3,905 4,073
Parking tickets issued 41,829 45,176 63,610 66,183 57,153 75,637 82,221
Cemetery
Lots sold 115 143 142 119 98 114 104
Golf
Annual rounds played 28,560 26,084 30,936 41,588 43,605 121 59,244 57,256
Garbage and rubbish
Yards sent to landfill 18,705 20,334 21,805 29,322 29,869 30,402 30,517
Recycling
Recycled goods sold (tons) 3,149 2,446 2,163 2,591 2,818 2,269 2,441
Yards composted 20,413 15,725 21,819 21,871 21,928 17,189 21,304
Source: The City of Lansing
Data available back seven years only
The addition of the Southside Community Center,with a pool, resulted in a large increase in recreation participation in FY 201C
Z Two golf course were closed in FY 2008 with one of those being converted to a driving range
Source: City of Lansing
169
CITY OF LANSING, MICHIGAN Table 18
Capital Assets Statistics by Function/Program
June 30, 2012
Function/Program 2012 2011 2010 2009 2008 2007 2006
Public safety
Police stations 2 3 3 3 3 3 3
Police patrol units 60 58 61 61 58 55 55
Fire stations 6 8 9 9 9 9 9
Public works
Streets (miles) 407.80 410.80 410.63 410.15 410.15 410 409.89
Traffic signals 204 208 203 196 203 188 194
Recreation
Park acreage 2,434.88 2,422.63 2,422.63 2,422.63 2,422.63 2,219.63 2,219.63
Playgrounds 73 71 71 82 82 80 76
Baseball/softballfields 61 61 61 61 61 61 61
Soccer/football fields 6 6 6 6 6 6 6
Community centers 4 4 4 4 4 4 4
Sewage disposal
Sanitary sewers (miles) 359 359 357 354 347.4 341.0 338.0
Storm sewers (miles) 234 234 233 230 225.1 220.0 217.0
Combined sewers (miles) 188 188 191 192 197.4 203.0 208.0
Parking system
Ramps 4 4 4 4 6 6 5
Lots 15 15 16 16 15 15 15
Meters 2,452 2,452 2,493 2,493 2,489 2,489 2,489
Cemetery
Number of cemeteries 3 3 3 3 3 3 3
Golf
Number of courses 1 1 1 1 1 b 3 3
Acreage 115 115 115 115 115 b 318 318
Garbage and rubbish
Refuse collection trucks 19 22 18 16 21 21 20
Recycling
Recycling trucks 7 9 10 10 10 10 10
Potter park zoo
Number of animals N/A N/A N/A N/A N/A a 398 403
Source: The City of Lansing
Data available back seven years only
a. Zoo operations were transferred to Ingham County in FY2008
b. Two municipal golf courses were non-operational beginning in 2008
170