HomeMy WebLinkAboutCity of Lansing Annual Comprehensive financial Report June 30, 2022 CITY OF LANSING, MICHIGAN
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
� S j
ti G
Andy Schor, Mayor
Prepared by:
Department of Finance
Chief Financial Officer/Finance Director
Desiree A. Kirkland
Controller
Jeffery D. Scharnowske
TABLE OF CONTENTS
Pape
INTRODUCTORY SECTION................................................................................................................................................................1
Electedand Appointed Officers.......................................................................................................................................................2
Letterof Transmittal.........................................................................................................................................................................3-7
Certificate of Achievement for Excellence in Financial Reporting...................................................................................8
Tableof Organization..........................................................................................................................................................................9
FINANCIALSECTION.........................................................................................................................................................................10
INDEPENDENT AUDITOR'S REPORT.......................................................................................................................................11-13
MANAGEMENT'S DISCUSSION AND ANALYSIS..................................................................................................................14-24
BASIC FINANCIAL STATEMENTS.................................................................................................................................................25
Government-wide Financial Statements
Statementof Net Position.....................................................................................................................................................27-28
Statementof Activities..............................................................................................................................................................29
Fund Financial Statements
Governmental Funds
BalanceSheet............................................................................................................................................................................32
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position................33
Statement of Revenues,Expenditures,and Changes in Fund Balances..........................................................34
Reconciliation of the Statement of Revenues,Expenditures,and Changes in
Fund Balances of Governmental Funds to the Statement of Activities..........................................................35
Proprietary Funds
Statementof Net Position...................................................................................................................................................37
Statement of Revenues,Expenses,and Changes in Fund Net Position............................................................38
Statementof Cash Flows...................................................................................................................................................39-40
Fiduciary Funds
Statement of Fiduciary Net Position...............................................................................................................................42
Statement of Changes in Fiduciary Net Position.......................................................................................................43
Discretely Presented Component Unit Financial Statements
Combining Statement of Net Position............................................................................................................................46
Combining Statement of Activities..................................................................................................................................47
Notesto Financial Statements..............................................................................................................................................48-111
REQUIRED SUPPLEMENTARY INFORMATION.....................................................................................................................112
General Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-Budget and Actual...................113-114
State and Federal Grants Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-Budget and Actual........................115
CERA-MSHDA Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-Budget and Actual........................116
TABLE OF CONTENTS
Page
REQUIRED SUPPLEMENTARY INFORMATION (concluded)
Employees'Retirement System Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios........................................................................117
Scheduleof Contributions......................................................................................................................................................118
Schedule of Investment Returns..........................................................................................................................................119
Police and Fire Retirement System Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios........................................................................120
Scheduleof Contributions......................................................................................................................................................121
Schedule of Investment Returns..........................................................................................................................................122
Employees'Retirement System OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios.............................................................................123
Scheduleof Contributions......................................................................................................................................................124
Schedule of Investment Returns..........................................................................................................................................125
Police and Fire Retirement System OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios.............................................................................126
Scheduleof Contributions......................................................................................................................................................127
Schedule of Investment Returns..........................................................................................................................................128
Note to Required Supplementary Information.................................................................................................................129
OTHER SUPPLEMENTARY INFORMATION............................................................................................................................130
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet- Nonmajor Governmental Funds..............................................................................131
Combining Statement of Revenues, Expenditures,and Changes in Fund
Balances-Nonmajor Governmental Funds..............................................................................................................132
Combining Balance Sheet- Nonmajor Special Revenue Funds.....................................................................135-136
Combining Statement of Revenues, Expenditures,and Changes in Fund
Balances-Nonmajor Special Revenue Funds.....................................................................................................137-138
Schedules of Revenues,Expenditures,and Changes in Fund Balance-
Budgetand Actual-by Fund......................................................................................................................................139-147
Balance Sheet-Nonmajor Debt Service Fund...........................................................................................................149
Statement of Revenues,Expenditures,and Changes in Fund
Balance-Nonmajor Debt Service Fund.....................................................................................................................150
Combining Balance Sheet- Nonmajor Capital Projects Funds...........................................................................152
Combining Statement of Revenues, Expenditures,and Changes in Fund
Balances-Nonmajor Capital Projects Funds...........................................................................................................153
Combining Balance Sheet- Nonmajor Permanent Funds....................................................................................155
Combining Statement of Revenues, Expenditures,and Changes in Fund
Balances-Nonmajor Permanent Funds....................................................................................................................156
Nonmajor Enterprise Fund
Combining Statement of Net Position...........................................................................................................................158
Combining Statement of Revenues, Expenses,and Changes in Fund Net Position...................................159
Combining Statement of Cash Flows.............................................................................................................................160
TABLE OF CONTENTS
Page
OTHER SUPPLEMENTARY INFORMATION (concluded)
Combining and Individual Fund Financial Statements and Schedules (concluded)
Internal Service Funds
Combining Statement of Net Position...........................................................................................................................162
Combining Statement of Revenues, Expenses,and Changes in Fund Net Position...................................163
Combining Statement of Cash Flows.............................................................................................................................164
Fiduciary Funds
Pension and Other Postemployment Benefit Trust Funds
Combining Statement of Fiduciary Net Position..................................................................................................166
Combining Statement of Changes in Fiduciary Net Position..........................................................................167
Custodial Funds
Combining Statement of Fiduciary Net Position..................................................................................................168
Combining Statement of Changes in Fiduciary Net Position..........................................................................169
STATISTICAL SECTION (UNAUDITED)....................................................................................................................................170
Table
1 Net Position by Component...........................................................................................................................................172
2 Changes in Net Position.............................................................................................................................................173-174
3 Fund Balance,Governmental Funds..........................................................................................................................175
4 Changes in Fund Balances of Governmental Funds............................................................................................176
5 Assessed Value and Estimated Actual Value of Taxable Property................................................................177
6 Direct and Overlapping Property Tax Rates..........................................................................................................178
7 Principal Property Taxpayers......................................................................................................................................179
8 Property Tax Levies and Collections.........................................................................................................................180
9 Ratios of Outstanding Debt by Type..........................................................................................................................181
10 Ratios of General Bonded Debt Outstanding.........................................................................................................182
11 Direct and Overlapping Governmental Activities Debt.....................................................................................183
12 Legal Debt Margin Information...................................................................................................................................184
13 Pledged-Revenue Coverage...........................................................................................................................................185
14 Demographic and Economic Statistics.....................................................................................................................186
15 Principal Employers.........................................................................................................................................................187
16 Full-Time Equivalent City Governmental Employees by Function/Program..........................................188
17 Operating Indicators by Function/Program..........................................................................................................189
18 Capital Assets Statistics by Function/Program....................................................................................................190
INTRODUCTORY SECTION
1
CITY OF LANSING,MICHIGAN
LANSING CITY GOVERNMENT
Fiscal Year Ended June 30,2022
MAYOR
Andy Schor
CITY COUNCIL
Adam Hussain,Council President, 3rd Ward
Carol Wood, Council Vice President,At Large
Peter Spadafore,At Large
Jeffrey Brown,At Large
Patricia Spitzley,At Large
Brian M. Daniels, 1st Ward
Jeremy A. Garza,2nd Ward
Brian T.Jackson,4th Ward
CLERK
Chris Swope
DISTRICT COURT JUDGES
Stacia Buchanan,Chief Judge
Kristen D.Simmons
Cynthia M.Ward
Tony Flores
Laura Millmore
OFFICERS
Chief Information Officer..................................................................................................... Christopher Mumby
Chief Strategy Officer............................................................................................................. Shelbi Frayer
Chief Labor Negotiator.......................................................................................................... Elizabeth O'Leary
CityAssessor.............................................................................................................................. Sharon Frischman
CityAttorney.............................................................................................................................. Jim Smiertka
Communications Director.................................................................................................... Scott Bean
City Treasurer/Chief Financial Officer........................................................................... Desiree Kirkland
CourtAdministrator............................................................................................................... Anethia Brewer
Deputy Mayor/Chief of Staff.............................................................................................. Jane Bais DiSessa
Executive Assistant................................................................................................................. Mark Lawrence
Economic Development &Planning Director............................................................. Brian McGrain
FireChief..................................................................................................................................... Brian Sturdivant
Human Relations&Community Service Director..................................................... Kimberly Coleman
Human Resources Director................................................................................................. Linda Sanchez-Gazella
Neighborhoods&Citizen Engagement.......................................................................... DeLisa Fountain
Parks&Recreation Director............................................................................................... Brett Kaschinske
PoliceChief................................................................................................................................. Ellery Sosebee
Public Service Director.......................................................................................................... Andrew Kilpatrick
2
y¢N Sj�C
2021 FINANCE DEPARTMENT
124 W. Michigan Ave., 811 Floor
Lansing, Michigan 48933
�r � 517.483.4500
C1i 1G
Andy Schor,Mayor
December 20,2022
Council President Adam Hussain and Council Members
10th Floor City Hall
Lansing,Michigan 48933-1694
Dear President Hussain and Council Members,
The Finance Department is pleased to submit the comprehensive annual financial report for the City of
Lansing,Michigan,for the fiscal year ended June 30, 2022.
The City of Lansing 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 is accurate in all material respects and is reported in a manner designed to present fairly the financial
position and results of the government operations 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 2021/2022 financial statements have been audited by Maner Costerisan, an
independent firm of licensed,certified public accountants located within the Capital Region. The goal of the
independent audit is to provide reasonable assurance that the financial statements for the City for the fiscal
year-end June 30,2022,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 unmodified opinion on the statements,meaning the
financial statements present fairly and accurately in all material respects in conformity with the Generally
Accepted Accounting Principles (GAAP). The Independent Auditor 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 (MD&A) and
should be read in conjunction with it. The Management Discussion and Analysis can be found immediately
following the Independent Auditor 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 (Home Rule City Act). The City incorporates 34.7 square
miles and is located in Michigan's Lower Peninsula within the northwestern corner of Ingham County and
the northeastern corner of Eaton County. The City operates under a mayor/council form of government,
where the Mayor serves as the chief executive of the City and is elected on an at-large basis to serve a four-
year term. Lansing is a mature core city with a population of 112,644 according to the 2020 census and
offers a full range of services. During the fiscal year ended June 30, 2022, the City operated a police
headquarters and precinct with 211 sworn police officers,six fire stations with a fire protection force of 170,
over 365 miles of sanitary sewers,239 miles of storm sewers and 184 miles of combined sewers,over 413
miles of roads, 113 parks, a District Court and support for human services and cultural events. The City's
main sources of revenue are property taxes,income taxes,State revenue sharing,Federal entitlement grants
and charges for services including utility billings.
3
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 unit the Lansing Building Authority. 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. 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&Public Facilities Authority,Tax increment
Finance Authority,the Brownfield Redevelopment Authority,and the Saginaw Street and Michigan Avenue
Corridor Improvement Authority are reported as discretely presented component units.
Financial Management and Control
Management of the City of Lansing is responsible for establishing and maintaining internal controls. These
controls are 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. This allows for the accurate presentation of
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 Title 2 U.S.Code of Federal Regulations Part 200,Uniform Administrative Requirements,Cost Principals,
and Audit Requirements for Federal Awards(Uniform Guidance). The standards governing the single audits
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
Report.
Financial results and applicable policies affecting year-end results for the fiscal year ended June 30, 2022
are discussed in the Management Discussion and Analysis (MD&A), located immediately following the
Independent Auditor Reports.
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. Not later than the third Monday in May of each year,the City Council shall,by resolution, adopt a
budget for the ensuing fiscal year. Budgetary controls and limitations are noted in the Note Disclosure
Section of the financial statements.
The City also maintains an encumbrance accounting system,whereby purchase order amounts are deducted
from the available budget as one technique of accomplishing budgetary control. Encumbered amounts lapse
at year-end and require City Council approval to be carried forward to the ensuing fiscal year for amounts
greater than$5,000 or greater than eight months old.
4
Local Economy
The City of Lansing is the seat of the Michigan state government. The local economy is comprised of a
diversified mix of business and industries. With Michigan State University,Davenport University,Western
Michigan University Thomas M Cooley Law School and Lansing Community College,the region has a strong
higher education presence. The metro Lansing region is also home to several national insurance company
headquarters and healthcare services with two major hospitals in the City and a wide variety of technology
firms. Manufacturing also has a strong presence, especially in the automotive and biotech engineering
sectors, with two General Motors assembly plants and related facilities located in the City, including a
Logistics Center and a regional stamping plant,automotive suppliers throughout the region,production of
particle accelerators,and vaccine research and production. Within the City,major taxpayers and employers
include, but are not limited to, the health care sector - Sparrow Health Systems and McLaren Health Care
Corporation,manufacturing-General Motors,research sector-Emergent BioSolutions,Neogen Corporation,
and Niowave,Inc.,and financial services and insurance-Jackson National Life and AF Group.
Lansing serves as the cultural center for the region. Recent major investments have continued to revitalize
Lansing and power the local economy. These new projects range in size from large to small and will continue
to make Lansing a great place that offers the benefits of a big city with the affordability and convenience of
a small town.
Some notable business expansion and real estate projects that are attributed to the success of the City's
economic development include:
• In 2022 the Mayor announced$175,000 in funding for the Facade Improvement Program which assists
businesses and property owners with matching grants to improve storefronts throughout Lansing's
commercial corridors.
• The City s Arts grant program continues to support local arts and culture organizations including the
Lansing Art Gallery, Impression 5,and the Lansing Symphony Orchestra. In addition,the City will be
providing$167,500 of arts impact grants through the Fiscal Year 2021/2022 City of Lansing budget.
• City View Apartments,Building#1:The first phase of the City View project at the site of the former Lake
Trust Headquarters (500 S.Capitol Ave.)opened for leasing in November. This adaptive reuse project
includes 55 new residential units in downtown Lansing. The rest of the 500 Block redevelopment is
nearing completion. This will be a$32 million development project in downtown Lansing and includes
the creation of 172 multifamily apartment units scheduled for completion in 2023.
• Construction on the Temple Lofts project commenced in late 2020 and was completed in December
2022. This $10.5 million redevelopment of one of Old Town's most storied buildings includes the
construction of 31 market-rate apartments,4,000 square feet of first-floor office and commercial space
• 637 E.Michigan Ave. (former Clara's) Redevelopment:The$3,100,000 investment to restore an iconic
Lansing train station includes nearly 6,000 SF of completely renovated commercial space. The building
will be occupied by two new tenants,a recently opened Starbucks community store and Bobcat Bonnies,
a Michigan-based restaurant scheduled to open in 2023.
• Construction of McLaren Greater Lansing's new state of the art $600 million healthcare campus at
Forest and Collins Rd.in Lansing was completed in March 2022.
5
Future development projects currently underway include:
• $175 million Lansing public safety bond will pay for newly constructed public safety and courts campus.
This new facility will house the headquarters of the Lansing Fire Department, the Lansing Police
Department, a new fire station, temporary detention facility, and the 54-A District Court. The new,
central location for public safety services will be on S. Washington Ave, next to the City's South
Washington Office Complex.
• The Ovation Music and Arts Center, which will be located downtown next to the former Lake Trust
location will be a new,state of the art live performance venue.
• Lansing Shuffleboard and Social Club: The Lansing Shuffle project includes a full renovation of the
former Lansing City Market building and upgrades to the patio. The opening is scheduled for early 2023
and will offer a variety of food and drink options from local food entrepreneurs,full-sized shuffleboard
courts, and community event space. This project will serve as a hub for delicious food and unique
entertainment and continue the momentum of riverfront activation,adding to the flourishing lifestyle
amenities in downtown Lansing. The total project investment is estimated at over$3,000,000.
• Hall 224: The transformation of 224 S.Washington Sq. into a live music and event venue is nearing
completion. The estimated$1.4 million development plans to open in 2023 and have a capacity of about
600 for general admission and 250 people for tabled events.
• Grand River Pedway Improvements: The complete refurbishment of the city owned pedway that
provides pedestrian access across the Grand River is well underway. The Lansing Brownfield
Redevelopment Authority was able to leverage private development investment from its Brownfield
Revolving Fund to help finance this important public improvement. The update pedway will promote
stronger connections across downtown and improve access to several assets such as the river trail,the
Lansing Center,and numerous local businesses.
• Holmes Street School Redevelopment:The former Holmes Street School is currently being redeveloped
into 47 new residential units with completion by spring 2023. The project will incorporate many of the
original details of the building in the redevelopment such as high ceilings,large windows,and original
terrazzo as well as using reclaimed wood floors.
In 2022, the City of Lansing brought our economic development team back in-house, re-establishing the
Lansing Economic Development Corporation. With five full-time staff,the Lansing EDC accomplishes this by
attracting and growing businesses, redeveloping properties, and using public/private partnerships. We
continue our regional partnership with the Lansing Economic Area Partnership (LEAP).
For the year 2022,the City and our EDC was able to get 15 projects from the Prospect to the Approved stage.
These projects represent nearly $3.3 billion in new investment in Lansing and are now ready to start
construction or are already underway.
• Notable Real Estate and Placemaking Projects Approved in 2022
0 2130 W.Holmes Redevelopment Project: Multi-Family Residential and Commercial
0 700 May St./The Cottages: Multi-Family Residential
o Stadium North Lofts/Senior Lofts:Multi-Family Residential
6
• Notable Business Development Projects Approved in 2022
o Ultium Cells/General Motors: Business Retention and Expansion
o Neogen Corporation: Business Retention and Expansion
o Moneyball Sportswear: Business Retention and Expansion
Commercial Corridor Improvement
The City and Lansing EDC has also targeted four commercial corridors throughout the city to focus special
redevelopment efforts. These Corridor Improvement Authorities are the Michigan Avenue Corridor
Improvement Authority (MACIA), Saginaw Street Corridor Improvement Authority (SSCIA), South Martin
Luther King Jr. Blvd. Corridor Improvement Authority (SMLKCIA) and the Lansing Gateway (North Grand
River) Corridor Improvement Authority.
Throughout the course of 2022 significant progress was made by the Corridor Improvement Authorities. As
a part of the City of Lansing's American Rescue Plan Act(ARPA)allocation,Mayor Schor allocated$100,000
to each of the Corridor Improvement Authorities to provide resources to jumpstart project implementation
along the targeted commercial corridors. The S.MLK CIA,with assistance from the Lansing EDC staff,made
great strides by adopting its Development&Finance Plan in 2022 and will formally get further underway in
2023. The MACIA continued the implementation of their Development&Finance Plan to further efforts of
corridor revitalization. The MACIA along with the City of Lansing, and the Capital Region Community
Foundation are funding facade improvements of all the businesses on the entire north side of the 2000 block
of E.Michigan Avenue to create a cohesive refresh. The revitalization of the Saginaw corridor has begun to
generate momentum with the acquisition of key vacant properties. Moneyball Sportswear, a homegrown
athletic apparel company, will consolidate their locations in neighboring municipalities and locate their
headquarters at 923-927 W. Saginaw Street. The Park Furniture building along with the property at 1001
W.Saginaw Street(neighboring the new location of Moneyball Sportswear)was acquired and will be home
to the operations of DRM International Learning Center, a workforce development company in the
healthcare industry. The Lansing Gateway CIA took steps to begin formulation of its board and will work
diligently to have their Development&Finance Plan approved in 2 02 3.
The need and demand for equitable development has never been greater. By using key findings from the
Mayor's Racial Justice Equity Alliance(MRJEA)report,the Lansing EDC has begun the development of critical
programs that will push Lansing forward to a place of shared prosperity and economic resilience. These
funds will be used to support BIPOC entrepreneurs to start and expand businesses in the City of Lansing,
reduce ALICE households in city,workforce development,and provide the training and resources to enable
community development. On July 25th,Lansing City Council approved the allocation of$2 million of ARPA
funds to the Lansing Equitable Economic Development(LEED) Initiative. The initiative is planning to begin
rolling out the programs in early 2023.
Cordially,
Dom.,
Desiree A.Kirkland,Chief Finance Officer
7
ovemment Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
rting
Presented to
Cite of Lansing
I Jiehigan
For its .4jmual Comprehensive
Financial Deport
For the Fiscal Year Ended
June 30. D.21
Executive Director!C'EC
8
Table of Organization
Citizens of Lansing
Oty perk City Council Mayor r 54-A District Court
Internal Audit--j City Attorneys r Office of
Review Transactions Legal Advisor/Defender Public Education Grant
Identify Efficiencies Prosecutor for City City Television
Analyze Programs
Police Fire r Economic Neighborhoods Public Parks&
Patrol Suppression Planning/Zoning Neighborhood Resources Roads/Sidewalks Parks Design
Crime Investigation Prevention Code Compliance Citizen Engagement Sewers/Treatment Recreation Programs
Community Policing Emergency Mgmt. Building Safety Financial Empowerment Trash/Recycling Community Centers
Social Work Rescue/Hazards Parking System Grounds Mai nt. Cemeteries
Detention Economic Dev.Corp. Engineering Golf
LEPFA Property Mgmt.
Downtown Lansing.Inc Fleet Services
Information Human I r Human Relations& Finance operations Treasury Assessing
IT Helpdesk Recruiting Grant Writing Assistance Accounting/Budget Income Taxes Assessing
Cybersecurity Training Human Services Grants Financial Reporting Property Taxes Property Tax Roll
Software Mgmt. Payroll/Benefits Police Investigations Strategic Planning
Retirement Neighborhood Ombudsman
9
FINANCIAL SECTION
10
2425 E.Grand River Ave.,
(00*M a n e r Suite 1,Lansing,MI 48912
n 517.323.7500
CosterisanED 517.323.6346
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and
Members of the City Council
City of Lansing,Michigan
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Lansing,Michigan (the City),as of and for the year ended June 30,2022,and the
related notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
In our opinion,the financial statements referred to above present fairly,in all material respects,the respective
financial position of the governmental activities,the business-type activities,the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Lansing, as of
June 30,2022,and the respective changes in financial position,and,when applicable,cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in GovernmentAuditing Standards,issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described
in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required
to be independent of the City of Lansing and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management of the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate,that raise substantial doubt about the City of Lansing's ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
11
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement,whether due to fraud or error, and to issue an auditor's report that includes our
opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards,we:
➢ Exercise professional judgment and maintain professional skepticism throughout the audit.
➢ Identify and assess the risks of material misstatement of the financial statements,whether due to fraud
or error,and design and perform audit procedures responsive to those risks. Such procedures include
examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements.
➢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City of Lansing's internal control. Accordingly,no such opinion is expressed.
➢ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management,as well as evaluate the overall presentation of the financial
statements.
➢ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City of Lansing's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis,budgetary comparison schedules,and the pension and OPEB schedules,as identified in
the table of contents,be presented to supplement the basic financial statements. Such information,although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America,which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements,and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
12
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying other supplementary information, as
identified in the table of contents,is presented for purpose of additional analysis and is not a require part of the
basic financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures,including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United State of America. In our opinion,other supplementary information,as identified
in the table contents, is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor's report thereon. Our opinions on the basic financial statements do not cover the other information,and
we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements,our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
perform,we conclude that n uncorrected material misstatement of the other information exists,we are required
to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated December 20, 2022,
on our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws,regulations,contracts,and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
December 20,2022
13
MANAGEMENT'S DISCUSSION AND ANALYSIS
14
CITY OF LANSING
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, 2022 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 net position $ (135,367,984)
Change in total net position 49,008,949
Fund balances,governmental funds 67675,364
Change in fund balances,governmental funds 10:837,661
Unassigned fund balance,general fund 21,907,213
Change in fund balance,general fund (6,320,951)
Long-term obligations outstanding 189,406,080
Change in long-term debt 928,301
Overview of the Financial Statements
This MD&A 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. The government-wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The
Statement of Net Position 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 Position presents all of the City's assets, deferred outflows of resources, liabilities, and
deferred inflows of resources with the difference between these categories reported as"net position". Over time,
increases and decreases in net position are an indicator of whether the City's long-term financial position is
improving or deteriorating,but can also change as a result of governmental accounting standards.
The Statement of Activities presents information showing how the City's net position changed during the most
recent fiscal year. All changes in net position 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).
15
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Statement of Net Position 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 other general 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 various discretely
presented units: the Brownfield Redevelopment Authority, the Tax Increment Finance Authority,
Saginaw Street Corridor Improvement Authority, Michigan Avenue Corridor Improvement Authority,
and the Lansing Entertainment and Public Facilities Authority.
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 inflows of resources 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 discounts and premiums in connection with the issuance of long-term obligations are reported as
other financing sources/uses 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,
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.
16
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
➢ 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.
➢ Pension and other postemployment benefits liabilities and related deferrals relating to governmental
funds are only reported in the government-wide statements.
The Notes to the 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 the General Fund,State and Federal Grants
Fund,CERA-MSHDA Grant Fund,Sewage Disposal System Fund,and Municipal Parking System Fund. Data for
all other funds,termed"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.
➢ 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 projects, 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 and other
postemployment benefit plans and for the 54-A District Court. 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 Position and Changes in Fiduciary Net Position.
These funds, which include pension and other postemployment benefit funds, 54-A District Court
Agency Fund, and Current Tax Collections Fund 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.
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.
17
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
Other Supplementary Information
Other supplementary information includes combining and individual fund 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.
Government-wide Financial Analysis
The City's combined net position increased $102.5 million over the course of this fiscal year's operations and
came to a total of$(184.4)million. Net position of governmental activities increased$84.3 million,and business-
type activities increased $18.1 million. Explanations for those changes are described below under the
governmental activities and business-type activities sections of this Management Discussion and Analysis.
Governmental Activities Business-type Activities Total
2021 2022 2021 2022 2021 2022
Current and other assets $ 131,028,770 $ 172,294,944 $ 87,638,273 $ 78,404,972 $ 218,667,043 $ 250,699,916
Capital assets,net 198,918,343 207,842,733 343,948,727 343,402,376 542,867,070 551,245,109
Total assets 329,947,113 380,137,677 431,587,000 421,807,348 761,534,113 801,945,025
Deferred outflows of resources 97,877,469 96,309,562 8,447,468 8,155,009 106,324,937 104,464,571
Current liabilities 47,972,442 70,574,273 22,021,840 21,217,472 69,994,282 91,791,745
Noncurrent liabilities 524,484,592 646,310,560 157,674,615 145,906,653 682,159,207 792,217,213
Total liabilities 572,457,034 716,884,833 179,696,455 167,124,125 752,153,489 884,008,958
Deferred inflows of resources 281,037,994 151,013,876 19,044,500 6,754,746 300,082,494 157,768,622
Net position
Investment in capital assets 153,733,211 159,442,216 219,824,056 232,446,124 373,557,267 391,888,340
Restricted 24,518,910 28,101,348 2,437,390 2,441,780 26,956,300 30,543,128
Unrestricted (603,922,567) (578,995,034) 19,032,067 21,195,582 (584,890,500) (557,799,452)
Total net position $ (425,670,446) $ (391,451,470) $ 241,293,513 $ 256,083,486 $ (184,376,933) $ (135,367,984)
The largest component of the City's net position reflects its net investment in capital assets (e.g.,land,buildings,
equipment,infrastructure,and others). Restricted net position is the next largest component,which represents
amounts subject to external restrictions such as bond covenants, State legislation or Constitutional provision.
The remaining portion, unrestricted net position are resources that may be used at the City's discretion, but
often have limitations based on policy action. The large increase in unrestricted net position of governmental
activities was primarily due to the decrease in the net pension and net other postemployment benefits liabilities
of$19.8 million and$114.0 million,respectively.
18
CITY OF LANSING
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 position changed during the fiscal year:
Governmental Activities Business-type Activities Total
2021 2022 2021 2022 2021 2022
Revenue
Program revenue
Charges for services $ 15,460,235 $ 16,188,665 $ 49,041,671 $ 49,273,285 $ 64,501,906 $ 65,461,950
Operating grants and contributions 61,065,241 90,177,926 - - 61,065,241 90,177,926
Capital grants and contributions 15,693,491 5,283,332 15,693,491 5,283,332
General revenue
Taxes 82,695,459 84,708,200 82,695,459 84,708,200
State shared revenues-unrestricted 16,612,094 17,704,794 16,612,094 17,704,794
Other 30,256,354 29,982,652 1,189,678 698,662 31,446,032 30,681,314
Total revenue 221,782,874 244,045,569 50,231,349 49,971,947 272,014,223 294,017,516
Expenses
General government 11,196,979 19,628,516 - - 11,196,979 19,628,516
Public safety 57,170,988 78,113,026 57,170,988 78,113,026
Public works 32,334,504 27,316,002 32,334,504 27,316,002
Recreation and culture 4,125,852 6,707,099 4,125,852 6,707,099
Community and economic development 34,764,843 75,618,986 34,764,843 75,618,986
Interest on long-term debt 1,072,610 1,845,964 1,072,610 1,845,964
Sewage disposal system - - 20,828,495 22,239,978 20,828,495 22,239,978
Municipal parking system 3,183,095 10,110,065 3,183,095 10,110,065
Cemetery 300,009 98,394 300,009 98,394
Golf 198,889 164,878 198,889 164,878
Garbage and rubbish collection 1,753,713 1,509,140 1,753,713 1,509,140
Recycling - - 2,613,739 1,656,519 2,613,739 1,656,519
Total expenses 140,665,776 209,229,593 28,877,940 35,778,974 169,543,716 245,008,567
Change in net position before transfers 81,117,098 34,815,976 21,353,409 14,192,973 102,470,507 49,008,949
Transfers(out)in 3,221,479 (597,000) (3,221,479) 597,000 - -
Change in net position 84,338,577 34,218,976 18,131,930 14,789,973 102,470,507 49,008,949
Net position-beginning of year (510,009,023) (425,670,446) 223,161,583 241,293,513 (286,847,440) (184,376,933)
Net position-end of year $ (425,670,146) $ (391,451,470) $ 241,293,513 $ 256,083,486 $ (184,376,933) $ (135,367,984)
Governmental Activities. The following chart depicts revenues of the governmental activities for the fiscal year:
Revenues - Governmental Activities
Fiscal Year Ending June 30, 2022
Other Charges for services
State shared revenues- 12% 7%
unrestricted
7%
Property taxes Operating grants and
20%
contributions
37%
Income taxes Capital grants and contributions
15% 2%
19
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
In total, governmental activity revenues increased $22.3 million from FY 2021 to FY 2022, with trends of the
major revenue categories as follows:
Restricted operating and capital grants and contributions comprised the largest portion of governmental
revenues of$90.2 million, or 37.0% of governmental activity revenue for fiscal year 2022,a$29.1 million,
or 48% increase from fiscal year 2021. State Gas and Weight tax revenues restricted for streets, and
Community Development, HOME, and Emergency Shelter entitlement grant revenues held constant with
mild growth;increase in this category came largely from non-entitlement restricted grant revenues resulting
from State and Federal Stimulus such as the CERA-MSHDA grant efforts.
Property taxes revenue was 19.5%of governmental revenues,or$47.6 million,which is an increase of$2.0
million,or 4.2%increase from 2021.
Income taxes comprised 15.2%,or$37.1 million,of governmental activity revenue,the full amount of which
is revenue to the General Fund. This represents a$83,000, or 0.2%,increase from fiscal year 2021. 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. Local
income tax rates are also limited to 0.5%for Lansing residents working subject to East Lansing's income tax.
Unrestricted grants and contributions (including state shared sales tax revenue) comprised 20%,or$47.8
million,of revenues,a$1.3 million,or 2.8%increase from fiscal year 2021. More than half of this category,
$17.7 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.
Charges for services are program-specific revenues generated for services provided. Governmental activity
charges for services increased$728,000 from FY 2021 to FY 2022.
Governmental Activities. The following chart depicts expenses of the governmental activities for the fiscal year:
Expenses - Governmental Activities
Fiscal Year Ending June 30, 2022
Recreation and culture
3%
Community and economic
Public works development
13% 36%
Interest on long-term debt
1%
Public safety _
37%
General government
10%
20
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
Total expenses for governmental activities increased$68.8 million,48.7%,from FY 2021 to FY 2022,with trends
of the major expense categories as follows:
The largest component of governmental activities was public safety,accounting for 37%,or$78.1 million,a
36.6% ($20.9 million) increase from FY 2021, largely resulting from increase in postemployment and
pension liabilities and the resulting impact to long-term liabilities.
Community and economic development represented 36%,or$75.6 million,of total governmental activities
expenses. This category increased $40.9 million, or 118% from FY 2021 due to increased grant programs
as part of federal recovery efforts,such as the CERA grant projects.
Public works comprises the third largest component of governmental activity expenses,at 13.0%,or$27.3
million,an 15.5% ($5.0 million) decrease from FY 2021,due to a decrease in expenses.
Business-type Activities. Net position of the business-type activities increased by$14.8 million from FY 2021
to$256.1 million. This increase was largely attributable to less funding being transferred to fund governmental
activities.
Financial Analysis of the City's Funds
As the City completed the fiscal year,its governmental funds reported combined ending fund balances of$67.7
million, a $10.8 million increase from fiscal year 2021. Of the $67.7 million fiscal year 2022 combined ending
fund balance, $3.9 million is unavailable to spend (i.e., amounts tied up in inventories, prepaids, and
endowments),$35.9 million is legally restricted,and$6.0 million is committed for designated projects,leaving
$21.9 million unassigned.
The unassigned fund balance for the General Fund was $21.9 million, an increase of approximately $700,000
from FY 2021,which is further described in the General Fund Budgetary Highlights section.
Sewage Disposal System Fund
Net position increased $13.9 million to $263.5 million in FY 2022. Unrestricted net position increased $2.5
million,from$21.5 million to$24.0 million.
Municipal Parking System Fund
Net position decreased $4.5 million to approximately $(540,000). Unrestricted net position decreased $5.7
million,from$11.9 million to$6.2 million. The system continues to experience significantly depressed revenues
resulting from 1)many employers allowing their downtown employees to work a hybrid/remote work schedule
and 2) downtown college students still allowed to take online classes rather than in-person classes.
21
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
General Fund Budgetary Highlights
The FY 2022 General Fund budget was adopted as a balanced budget with a usage of fund balance. The City
budgeted a vacancy factor in its General Fund to account for anticipated positions that would become vacant
during the course of the year. Because vacancies that will occur within each department cannot be projected,
the vacancy factor is budgeted as a single line item of the General Fund and allocated to various departments
through a budget amendment during the year. During the course of the fiscal year,the General Fund revenue
budget was amended from$152.4 million to$142.4 million.
General Fund reserves combined with the Budget Stabilization Fund (combined for financial statement
purposes) decreased $6.3 million from FY 2021 to $18.6 million. Unassigned fund balance increased
approximately$700,000,or 3%from fiscal year 2021. The City also benefited from state and federal grants used
to pay for public safety expenditures for eligible employees.
The City's local economy is comprised of a diversified mix of businesses and industries including government,
health care,manufacturing,insurance,banking,and education.
Capital Assets. At the end of the fiscal year 2022, the City had invested $552 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 Footnote 6 of the of the Notes to the Financial Statements section of the ACFR.
Governmental Activities Business-type Activities Total
2021 2022 2021 2022 2021 2022
Land $ 25,435,297 $ 25,435,297 $ 12,369,507 $ 12,369,507 $ 37,804,804 $ 37,804,804
Land improvements 13,872,508 12,926,012 13,570,456 2,345,583 27,442,964 15,271,595
Buildings and improvements 36,667,578 34,191,717 68,564,717 69,837,354 105,232,295 104,029,071
Equipment 7,739,183 7,110,279 2,405,017 2,910,621 10,144,200 10,020,900
Flowage rights 20,032,880 19,365,117 - 20,032,880 19,365,117
Infrastructure 86,057,449 85,285,683 215,398,478 234,781,043 301,455,927 320,066,726
Construction in progress 9,113,448 23,528,628 31,640,552 21,158,268 40,754,000 44,686,896
Total $ 198,918,343 $ 207,842,733 $ 343,948,727 $ 343,402,376 $ 542,867,070 $ 551,245,109
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 structures,golf courses,and other related 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.
22
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
2021 2022
Governmental activities
General obligation bonds $ 27,958,180 $ 29,629,300
Deferred amounts
For issuance premiums 663,565 586,222
Installment purchase contracts 9,156,735 22,457,000
Loans 7,660,461 6,886,326
Compensated absences 11,032,557 10,962,758
Workers compensation 2,789,472 3,082,191
Total governmental activities 59,260,970 73,603,797
Business-type activities
General obligation bonds 115,160,822 103,495,891
Deferred amounts
For issuance discounts (210,232) (144,942)
For issuance premiums 2,352,719 2,143,101
Revenue bonds 10,975,000 9,425,000
Installment purchase agreements 118,343 -
Compensated absences 820,157 883,233
Total business-type activities 129,216,809 115,802,283
Total outstanding debt $ 188,477,779 $ 189,406,080
More detailed information regarding these activities and funds can be found in Note 9 of the Notes to the
Financial Statements section of the ACFR.
Economic Condition and Outlook
The City has received substantial support from the federal stimulus American Rescue Plan Act (ARPA) and is
reviewing potential support on infrastructure. These have empowered ARPA funds have allowed the City to
maintain government services, increase community support-without sacrificing financial health. Many of the
employers in the City continue to have staff work remotely or remote hybrid, resulting in reduced business
activity downtown impacting income tax and parking revenues.
The 2021/2022 fiscal year resulted in a $678,000 increase to General Fund unassigned reserves, bringing
unassigned General Fund reserves up to$21.9 million,or 15.0%of General Fund revenues.,which is within the
City's 12%-lS%fund balance policy Additional savings exceeding the City's 12%-15% fund balance policy are
committed toward reducing unfunded liabilities for retirement pension or healthcare per the City's fund balance
policy. Significant challenges remain in the longer-term. Going forward,State-imposed limitations on municipal
revenues, most notably those on property tax growth,will continue to constrain resources,which in context of
projected increases in pension,healthcare,and infrastructure needs will present budgetary challenges.
23
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
Strengthening the City's economic base,maintaining General Fund reserves,and addressing long-term pension
and retiree healthcare obligations are top priorities. The City continues to work diligently with its employees
and unions to address the ongoing structural imbalance between projected revenues and long-term pension and
retiree health care costs. The City's financial picture will continuously be evaluated to address any budget
constraints for future fiscal years.
The City continues to experience significant economic development and national recognition of its economic
development efforts and accomplishments. For more information,please see the"Local Economy"section of the
Transmittal Letter.
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.
Copies of this financial report, as well as other financial reports, are available on the City's website,
www.lansingmi.gov. If you have any questions about this report or need additional financial information,please
feel free to contact the Finance Department-8th Floor, 124 W.Michigan Avenue,Lansing,Michigan.
24
BASIC FINANCIAL STATEMENTS
25
GOVERNMENT-WIDE FINANCIAL STATEMENTS
26
CITY OF LANSING
STATEMENT OF NET POSITION
JUNE 30,2022
Primary Government
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets
Cash and cash equivalents $ 44,330,183 $ 3,188,457 $ 47,518,640 $ 18,909,171
Equity in pooled cash and investments 63,438,072 15,510,034 78,948,106 7,552,207
Cash and cash equivalents,restricted 2,992,454 2,441,780 5,434,234 5,097,644
Current portion of receivables,net 19,370,703 8,559,994 27,930,697 1,165,675
Due from other governmental units 22,567,378 26,101,046 48,668,424 114
Internal balances (4,268,394) 4,268,394 - -
Inventories 1,879,085 467,401 2,346,486 72,221
Prepaids 2,267,302 - 2,267,302 62,598
Total current assets 152,576,783 60,537,106 213,113,889 32,859,630
Noncurrent assets
Noncurrent portion of receivables,net 19,718,161 17,867,866 37,586,027 100,487
Investments-restricted - - - 14,827
Capital assets not being depreciated 48,963,925 33,527,775 82,491,700 -
Capital assets,net of accumulated depreciation 158,878,808 309,874,601 468,753,409 86,948
Total noncurrent assets 227,560,894 361,270,242 588,831,136 202,262
TOTAL ASSETS 380,137,677 421,807,348 801,945,025 33,061,892
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 228,881 3,962,798 4,191,679
Deferred outflows of resources related to pensions 51,094,001 2,455,787 53,549,788
Deferred outflows of resources related to OPEB 44,986,680 1,736,424 46,723,104
TOTAL DEFERRED OUTFLOWS OF RESOURCES 96,309,562 8,155,009 104,464,571
LIABILITIES
Current liabilities
Accounts payable 16,329,860 6,512,718 22,842,578 4,560,121
Accrued payroll 3,402,638 192,504 3,595,142 -
Deposits payable - 81,782 81,782 -
Due to other governmental units 1,770,692 - 1,770,692 8,041,034
Claims incurred but not reported 1,500,000 1,500,000 -
Indemnity bonds 43,867 43,867 -
Other accrued liabilities 2,041,114 - 2,041,114 403,742
Accrued interest payable 603,045 2,202,129 2,805,174 278,754
Unearned revenue 39,680,581 - 39,680,581 459,428
Current portion of compensated absences 1,146,442 68,559 1,215,001 -
Current portion of long-term obligations 4,056,034 12,159,780 16,215,814 2,833,569
Total current liabilities 70,574,273 21,217,472 91,791,745 16,576,648
The accompanying notes are an integral part of the financial statements. CONTINUED
27
CITY OF LANSING
STATEMENT OF NET POSITION (concluded)
JUNE 30,2022
Primary Government
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES(concluded)
Noncurrent liabilities
Noncurrent portion of compensated absences $ 9,816,316 $ 814,674 $ 10,630,990 $
Noncurrent portion of long-term obligations 58,585,005 102,759,270 161,344,275 79,075,774
Accrued interest payable,net of current portion - - - 95,898
Net pension liability 344,666,086 27,293,809 371,959,895 -
Net other post-employment benefits liability 233,243,153 15,038,900 248,282,053
Total noncurrent liabilities 646,310,560 145,906,653 792,217,213 79,171,672
TOTAL LIABILITIES 716,884,833 167,124,125 884,008,958 95,748,320
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 4,897,680 657,358 5,555,038 1,131,356
Deferred inflows of resources related to OPEB 146,116,196 6,097,388 152,213,584
TOTAL DEFERRED INFLOWS OF RESOURCES 151,013,876 6,754,746 157,768,622 1,131,356
NET POSITION(DEFICIT)
Net investment in capital assets 159,442,216 232,446,124 391,888,340 25,864
Restricted
Public safety 729,503 - 729,503 -
Public works 20,769,263 20,769,263
Community development 401,620 401,620
Building department 4,366,574 - 4,366,574
Debt service 29,361 2,441,780 2,471,141
Revelopment projects - - - 5,017,644
Cooley stadium capital projects - - 80,000
Endowments(nonexpendable) 1,805,027 - 1,805,027 -
Unrestricted (578,995,034) 21,195,582 (557,799,452) (68,941,292)
TOTAL NET POSITION(DEFICIT) $ (391,451,470) $ 256,083,486 $ (135,367,984) $ (63,817,784)
The accompanying notes are an integral part of the financial statements.
28
CITY OF LANSING
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2022
Net(Expense)Revenue and Changes in Net Position
Program Revenues Primary Government
Operating Capital Grants
Charges for Grants and and Governmental Business-type Component
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Units
Primary government
Governmental activities
General government $ 19,628,516 $ 9,406,822 $ 8,400,585 $ 1,322,060 $ (499,049) $ $ (499,049) $
Public safety 78,113,026 4,423,872 3,038,693 - (70,650,461) (70,650,461)
Public works 27,316,002 1,165,080 19,252,127 3,961,272 (2,937,523) (2,937,523)
Recreation and culture 6,707,099 1,192,891 364,571 - (5,149,637) (5,149,637)
Community and economic development 75,618,986 - 59,121,950 (16,497,036) (16,497,036)
Interest on long-term debt 1,845,964 (1,845,964) (1,845,964)
Total governmental activities 209,229,593 16,188,665 90,177,926 5,283,332 (97,579,670) (97,579,670)
Business-type activities
Sewage disposal system 22,239,978 35,943,034 - - 13,703,056 13,703,056
Municipal parking system 10,110,065 5,101,852 (5,008,213) (5,008,213)
Cemetery 98,394 526,299 427,905 427,905
Golf 164,878 - (164,878) (164,878)
Garbage and rubbish collection 1,509,140 3,246,590 1,737,450 1,737,450
Recycling 1,656,519 4,455,510 2,798,991 2,798,991
Total business-type activities 35,778,974 49,273,285 13,494,311 13,494,311
Total primary government $ 245,008,567 $ 65,461,950 $ 90,177,926 $ 5,283,332 (97,579,670) 13,494,311 (84,085,359)
Component units
Brownfield Redevelopment Authority $ 17,427,056 $ - $ 194,444 $ - (17,232,612)
Tax Increment Finance Authority (2,257,609) - 2,257,609
Saginaw Street Corridor Improvement Authority -
Michigan Avenue Corridor Improvement Authority - - - -
Lansing Entertainment&Public Facilities Authority 6,485,452 5,428,872 1,539,600 483,020
Total component units $ 21,654,899 $ 5,428,872 $ 1,734,044 $ (14,491,983)
General revenues
Property taxes 47,620,607 47,620,607 12,225,147
Income taxes 37,087,593 37,087,593
Unrestricted state shared revenues 17,704,794 17,704,794
Grants and contributions not
restricted to specific programs 30,115,274 30,115,274
Investment earnings(loss) (94,154) 698,662 604,508 (1,840)
Miscellaneous (38,468) - (38,468) 680,163
Transfers (597,000) 597,000
Total general revenues and transfers 131,798,646 1,295,662 133,094,308 12,903,470
Change in net position 34,218,976 14,789,973 49,008,949 (1,588,513)
Net position(deficit),beginning of the year (425,670,446) 241,293,513 (184,376,933) (62,229,271)
Net position(deficit),end of the year $ (391,451,470) $ 256,083,486 $ (135,367,984] $ (63,817,784)
The accompanying notes are an integral part of the financial statements.
29
FUND FINANCIAL STATEMENTS
30
CITY OF LANSING
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Major Fund
General Fund - This 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.
State and Federal Grants Fund - This Special Revenue fund accounts for all revenues received from
intergovernmental grants and various contributions. These revenues are used for projects as detailed in
individual grant applications.
CERA-MSHDA Grant Fund - This fund accounts for all revenues received from the CERA grant through the
Michigan State Housing Development Authority. These revenues are used for projects as detailed in individual
grant applications.
Nonmajor Funds
Nonmajor governmental funds are presented,by fund type,within the Combining and Individual Fund Financial
Statements and Schedules section of this report as noted in the table of contents.
31
CITY OF LANSING
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30,2022
State and Federal Nonmajor
Grants-Special Governmental
General Revenue CERA-MSHDA Funds Total
ASSETS
Cash and cash equivalents $ 3,958,024 $ 24,941,930 $ 6,872,941 $ 8,557,288 $ 44,330,183
Cash and cash equivalents-restricted 2,992,454 - - - 2,992,454
Equity in pooled cash and investments 10,737,817 34,100,474 44,838,291
Receivables
Accounts,net 16,299,119 5,330,320 21,629,439
Taxes receivable,net 986,572 - 986,572
Special assessments - 10,714,739 10,714,739
Contracts 1,322,060 - 1,322,060
Loans - 31,880 1,185,000 1,216,880
Accrued interest - - - 2,350,196 2,350,196
Due from other governmental units 5,728,497 11,371,436 1,886,840 3,580,605 22,567,378
Inventories - - - 1,348,300 1,348,300
Prepaids 759,490 - 250 759,740
TOTALASSETS $ 42,784,033 $ 36,345,246 $ 8,759,781 $ 67,167,172 $ 155,056,232
LIABILITIES
Accounts payable $ 9,899,478 $ 1,443,755 $ 498,498 $ 3,015,275 $ 14,857,006
Accrued payroll 2,891,822 35,851 2,032 92,912 3,022,617
Due to other governmental units 1,433,211 27,005 - 310,476 1,770,692
Indemnitybonds - - 43,867 43,867
Other liabilities 2,026,514 - - 14,600 2,041,114
Due to other funds - 3,738,427 51,133 478,834 4,268,394
Unearned revenue 285,856 31,060,602 8,208,118 126,005 39,680,581
TOTAL LIABILITIES 16,536,881 36,305,640 8,759,781 4,081,969 65,684,271
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-fees 1,473,290 - - - 1,473,290
Unavailable revenue-contracts 1,322,060 - - 1,322,060
Unavailable revenue-loans and accrued interest receivable - 39,606 8,567,480 8,607,086
Unavailable revenue-special assessments - - 10,294,161 10,294,161
TOTAL DEFERRED INFLOWS OF RESOURCES 2,795,350 39,606 18,861,641 21,696,597
FUND BALANCES
Nonspendable 759,490 - 3,153,577 3,913,067
Restricted - 35,877,471 35,877,471
Committed 785,099 5,192,514 5,977,613
Unassigned 21,907,213 21,907,213
TOTAL FUND BALANCES 23,451,802 44,223,562 67,675,364
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES,AND FUND BALANCES $ 42,784,033 $ 36,345,246 $ 8,759,781 $ 67,167,172 $ 155,056,232
The accompanying notes are an integral part of the financial statements.
32
CITY OF LANSING
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION
JUNE 30,2022
Fund balances-total governmental funds $ 67,675,364
Amounts reported for governmental activities in the statement of net position are different
because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported as assets in the governmental funds.
The cost of capital assets is $ 600,015,832
Accumulated depreciation is (392,173,099)
Capital assets accounted for in the internal service funds,net (9,323,211)
Capital assets,net 198,519,522
Some assets are not current financial resources and therefore are not reported in the
Governmental Funds Balance Sheet.
Deferred ambulance fees receivable 769,473
Deferred nuisance fees receivable 703,817
Deferred loans receivable 6,256,890
Deferred long-term interest receivable 2,350,196
Deferred long-term special assessments receivable 10,294,161
Deferred contract receivable 1,322,060
Deferred outflows of resources related to pensions 51,094,001
Deferred outflows of resources related to OPEB 44,986,680
Deferred inflows of resources related to pensions (4,897,680)
Deferred inflows of resources related to OPEB (146,116,196)
(33,236,598)
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The assets and liabilities of certain internal service funds are included in the
governmental activities in the government-wide statement of net position.
Net position of governmental activities accounted for
in governmental activities internal service funds 25,354,248
Long-term liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds balance sheet.Long-term liabilities at year-end consist of:
Bonds and loans payable (58,392,919)
Deferred charges on refunding 228,881
Compensated absences (10,009,574)
Workers compensation (3,082,191)
Accrued interest payable (598,964)
Net pension liability (344,666,086)
Net other post-employment benefits liability (233,243,153)
(649,764,006)
Net position of governmental activities $ (391,451,470)
The accompanying notes are an integral part of the financial statements.
33
CITY OF LANSING
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2022
State and Federal Nonmajor
Grants-Special Governmental
General Revenue CERA-MSHDA Funds Total
REVENUES
Property taxes and special assessments $ 46,226,914 $ $ $ 1,783,693 $ 48,010,607
Income taxes 37,087,593 - 37,087,593
Licenses and permits 1,932,281 - 1,932,281
Intergovernmental 22,818,693 13,381,019 51,092,362 25,791,952 113,084,026
Charges for services 10,925,736 639,413 - 4,009,421 15,574,570
Fines and forfeits 1,335,250 - 241,033 1,576,283
Interest and rents 268,225 27,262 (175,797) 119,690
Other 25,353,395 (28,091) - 435,458 25,760,762
TOTAL REVENUES 145,948,087 14,019,603 51,092,362 32,085,760 243,145,812
EXPENDITURES
Current
General government 21,883,495 - 59,047 3,530,734 25,473,276
Public safety 89,206,408 377,964 - 746,942 90,331,314
Public works 12,941,208 14,126 - 12,955,334
Highways and streets - - 11,450,485 11,450,485
Recreation and culture 9,134,233 - - 9,134,233
Community and economic development 10,632,345 13,863,374 50,898,386 1,390,328 76,784,433
Debt service
Principal 2,018,747 - - 2,500,169 4,518,916
Interest and fiscal charges 469,743 134,929 1,399,005 2,003,677
Capital outlay - - - 18,396,917 18,396,917
TOTAL EXPENDITURES 146,286,179 14,255,464 51,092,362 39,414,580 251,048,585
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (338,092) (235,861) (7,328,820) (7,902,773)
OTHER FINANCING SOURCES(USES)
Proceeds from debt issuances 27,559,000 27,559,000
Payment to refunding bond escrow agent (8,621,566) (8,621,566)
Proceeds from sale of capital assets 400,000 400,000
Transfers in 100,000 235,859 9,875,000 10,210,859
Transfers out (6,082,859) - (4,725,000) (10,807,859)
TOTAL OTHER FINANCING
SOURCES(USES) (5,982,859) 235,859 24,487,434 18,740,434
NET CHANGE IN FUND BALANCES (6,320,951) (2) 17,158,614 10,837,661
Fund balances,beginning of year 29,772,753 2 27,064,948 56,837,703
Fund balances,end of year $ 23,451,802 $ - $ $ 44,223,562 $ 67,675,364
The accompanying notes are an integral part of the financial statements.
34
CITY OF LANSING
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2022
Net change in fund balances-total governmental funds $ 10,837,661
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures.However,in the statement of activities,the
cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.
This is the amount by which capital outlays exceeded depreciation expense in the current period.
Capital outlay $ 21,729,246
Depreciation expense (11,882,675)
Loss on disposal of capital assets (50,755)
Excess of capital outlay over depreciation expense 9,795,816
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds.
Change in deferred ambulance fees receivable (295,275)
Change in deferred nuisance fees receivable 345,679
Change in deferred loans receivable (436,659)
Change in deferred contract receivable 1,322,060
Change in deferred long-term interest receivable 59,250
Change in deferred special assessments receivable (454,176)
540,879
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The net revenue of certain individual funds are included in the governmental activities.
Change in net position of governmental activities internal service funds 6,102,511
Repayment of long-term debt and borrowing of long-term debt is reported as expenditures and other
financing sources in governmental funds, but the repayment reduces long-term liabilities and the
borrowings increase long-term liabilities in the statement of net position. In the current year, these
amounts consist of:
Premium on bond issuance 77,343
Deferred charges on refunding (24,928)
Issuance of debt (27,559,000)
Debt principal retirement 13,128,284
(14,378,301)
Certain expenditures are reported in governmental funds that reduce long-term liabilities for purpose of
the statement of net position.
Change in estimated workers compensation (292,719)
Some items reported in the statement of activities do not require the use of current financial resources
and therefore are not reported as expenditures in governmental funds. These activities consist of:
(Increase)in net pension liability (78,078,180)
(Increase)in net OPEB liability (28,895,280)
Increase in deferred outflows of resources related to pensions 24,416,048
(Decrease)in deferred outflows of resources related to OPEB (25,959,027)
Decrease in deferred inflows of resources related to pensions 35,537,855
Decrease in deferred inflows of resources related to OPEB 94,486,263
(Increase)in accrued interest payable (18,995)
Decrease in compensated absences 124,445
21,613,129
Change in net position of governmental activities $ 34,218,976
The accompanying notes are an integral part of the financial statements.
35
CITY OF LANSING
PROPRIETARY FUND FINANCIAL STATEMENTS
Major Funds
Sewage Disposal System Fund-This fund accounts for the activities 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.
Nonmajor Enterprise Funds and Internal Service Funds
Nonmajor enterprise funds and internal service funds are presented, by fund type, within the Combining and
Individual Fund Financial Statements and Schedules section of this report as noted in the table of contents.
36
CITY OF LANSING
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Fund
ASSETS
Current assets
Cash and cash equivalents $ - $ 3,188,257 $ 200 $ 3,188,457 $
Cash and cash equivalents-restricted 2,441,780 - - 2,441,780 -
Equity in pooled cash and investments 10,039,225 - 5,470,809 15,510,034 18,599,781
Receivables,net
Customers 7,310,590 70,417 47,474 7,428,481 868,978
Interest 28,686 140,204 - 168,890 -
Contracts 682,232 280,391 962,623
Due from other funds 6,135,551 - 6,135,551
Due from other governmental units 26,101,046 26,101,046 -
Inventories 414,880 52,521 467,401 530,785
Prepaids - - - - 1,507,562
Total current assets 53,153,990 3,679,269 5,571,004 62,404,263 21,507,106
Noncurrent assets
Contract receivable,net of current portion 4,062,094 13,805,772 - 17,867,866 -
Capital assets not being depreciated 21,579,017 11,545,371 403,387 33,527,775 92,892
Capital assets,net of accumulated depreciation 299,039,021 9,170,031 1,665,549 309,874,601 9,230,319
Total noncurrent assets 324,680,132 34,521,174 2,068,936 361,270,242 9,323,211
TOTAL ASSETS 377,834,122 38,200,443 7,639,940 423,674,505 30,830,317
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refunding 829,129 3,133,669 - 3,962,798 -
Deferred outflows of resources related to pensions 1,288,429 403,000 764,358 2,455,787
Deferred outflows of resources related to OPEB 911,015 284,950 540,459 1,736,424
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,028,573 3,821,619 1,304,817 8,155,009 -
LIABILITIES
Current liabilities
Accounts payable 6,153,736 101,647 257,335 6,512,718 1,472,854
Accrued payroll 129,895 53,061 9,548 192,504 380,021
Deposit payable - 81,782 - 81,782 -
Claims incurred but not reported - - - 1,500,000
Accrued interest payable 467,648 1,734,481 2,202,129 4,081
Due to other funds - 1,867,157 1,867,157 -
Current portion of compensated absences 4,873 58,749 4,937 68,559 23,958
Current portion of long-term obligations 10,783,700 1,376,080 - 12,159,780 129,642
Total current liabilities 17,539,852 5,272,957 271,820 23,084,629 3,510,556
Noncurrent liabilities
Compensated absences,net of current portion 494,265 68,668 251,741 814,674 929,226
Bonds and notes payable,net of current portion 73,590,940 29,168,330 - 102,759,270 1,036,287
Net pension liability 14,319,700 4,478,968 8,495,141 27,293,809 -
Net other post-employment benefits liability 7,890,161 2,467,913 4,680,826 15,038,900
Total noncurrent liabilities 96,295,066 36,183,879 13,427,708 145,906,653 1,965,513
TOTAL LIABILITIES 113,834,918 41,456,836 13,699,528 168,991,282 5,476,069
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 344,882 107,875 204,601 657,358 -
Deferred inflows of resources related to OPEB 3,198,995 1,000,593 1,897,800 6,097,388
TOTAL DEFERRED INFLOWS OF RESOURCES 3,543,877 1,108,468 2,102,401 6,754,746 -
NET POSITION(DEFICIT)
Net investment in capital assets 237,072,527 (6,695,339) 2,068,936 232,446,124 8,157,282
Restricted for bond reserves 2,441,780 - - 2,441,780 -
Unrestricted 23,969,593 6,152,097 (8,926,108) 21,195,582 17,196,966
TOTAL NET POSITION(DEFICIT) $ 263,483,900 $ (543,242) $ (6,857,172) $ 256,083,486 $ 25,354,248
The accompanying notes are an integral part of the financial statements.
37
CITY OF LANSING
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
OPERATING REVENUES
Charges for services $ 35,943,034 $ 5,101,852 $ 8,228,399 $ 49,273,285 $ 95,907,146
Other - - - - 58,951
TOTAL OPERATING REVENUES 35,943,034 5,101,852 8,228,399 49,273,285 95,966,097
OPERATING EXPENSES
Personnel services (796,916) 714,574 337,212 254,870 9,023,759
Purchase of goods and services 10,842,620 1,945,852 3,002,681 15,791,153 78,846,327
Other services and charges 24,005 4,650 - 28,655 -
Depreciation 9,898,880 2,067,069 87,874 12,053,823 2,109,769
TOTAL OPERATING EXPENSES 19,968,589 4,732,145 3,427,767 28,128,501 89,979,855
OPERATING INCOME 15,974,445 369,707 4,800,632 21,144,784 5,986,242
NONOPERATING REVENUE(EXPENSES)
Interest income(loss) 199,619 493,047 5,996 698,662 -
Gain on sale of capital assets - - - - 134,526
Interest expense and fees (2,271,389) (5,377,920) (1,164) (7,650,473) (18,257)
TOTAL NONOPERATING
REVENUES(EXPENSES) (2,071,770) (4,884,873) 4,832 (6,951,811) 116,269
NET INCOME(LOSS)
BEFORE TRANSFERS 13,902,675 (4,515,166) 4,805,464 14,192,973 6,102,511
TRANSFERS IN - 625,000 625,000 -
TRANSFERS OUT (28,000) (28,000)
TOTAL TRANSFERS 597,000 597,000 -
CHANGE IN NET POSITION 13,902,675 (4,515,166) 5,402,464 14,789,973 6,102,511
Net position(deficit),beginning of year 249,581,225 3,971,924 (12,259,636) 241,293,513 19,251,737
Net position(deficit),end of year $ 263,483,900 $ (543,242) $ (6,857,172) $ 256,083,486 $ 25,354,248
The accompanying notes are an integral part of the financial statements.
38
CITY OF LANSING
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 35,694,501 $ 5,073,220 $ 7,920,320 $ 48,688,041 $
Cash received from interfund services provided - - - - 96,437,134
Cash received for intergovernmental services 1,867,157 - 1,867,157 -
Cash payments for goods and services (40,762,997) (2,409,008) (2,799,158) (45,971,163) (78,250,045)
Cash payments to employees (6,797,337) (2,072,967) (3,747,273) (12,617,577) (9,865,288)
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES (11,865,833) 2,458,402 1,373,889 (8,033,542) 8,321,801
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in - 625,000 625,000 -
Transfers out (28,000) (28,000)
NET CASH PROVIDED(USED)BY
NONCAPITAL FINANCING ACTIVITIES 597,000 597,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (10,742,917) (764,555) - (11,507,472) (1,238,343)
Proceeds from sale of capital assets 134,526
Principal paid on long-term obligations (11,257,046) (2,593,907) (118,343) (13,969,296) (233,466)
Interest and costs paid on long-term obligations (2,273,838) (888,185) (1,744) (3,163,767) (19,222)
Proceeds from bond issuance 636,023 636,023
Payments received on contract receivable 676,276 676,276
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (22,961,502) (4,246,647) (120,087) (27,328,236) (1,356,505)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received(loss) 199,619 570,133 5,996 775,748 -
NET INCREASE(DECREASE)IN CASH
AND CASH EQUIVALENTS (34,627,716) (1,218,112) 1,856,798 (33,989,030) 6,965,296
Cash and cash equivalents,beginning of year 47,108,721 4,406,369 3,614,211 55,129,301 11,634,485
Cash and cash equivalents,end of year $ 12,481,005 $ 3,188,257 $ 5,471,009 $ 21,140,271 $ 18,599,781
The accompanying notes are an integral part of the financial statements. CONTINUED
39
CITY OF LANSING
STATEMENT OF CASH FLOWS (concluded)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
Reconciliation of operating income to net cash
provided(used)by operating activities
Operating income $ 15,974,445 $ 369,707 $ 4,800,632 $ 21,144,784 $ 5,986,242
Adjustments to reconcile operating income to net
cash provided(used)by operating activities
Depreciation 9,898,880 2,067,069 87,874 12,053,823 2,109,769
(Increase)decrease in:
Accounts receivable (248,533) (28,632) 16,834 (260,331) (465,036)
Due from other funds (6,135,551) (6,135,551)
Due from other governmental units (26,101,046) (26,101,046)
Inventories (100,223) (7,442) (107,665) (71,853)
Prepaids 136,484 136,484 461,705
Deferred outflows of resources related to pensions (469,042) (173,722) (307,305) (950,069) -
Deferred outflows of resources related to OPEB 541,830 121,580 269,935 933,345 -
Increase(decrease)in:
Accounts payable 2,440,448 (470,988) 74,481 2,043,941 206,510
Accrued liabilities 11,861 6,396 7,573 25,830 174,818
Due to other funds - 1,867,157 - 1,867,157 -
Unearned revenue - (324,913) (324,913)
Deposits payable - 12,482 - 12,482 -
Compensated absences 46,819 109 16,148 63,076 54,646
Claims incurred but not reported - - (135,000)
Net pension liability (744,158) 263,852 92,549 (387,757)
Net other post-employment benefits liability (161,733) 214,860 189,495 242,622
Deferred inflows of resources related to pensions (1,105,804) (298,051) (604,589) (2,008,444)
Deferred inflows of resources related to OPEB (5,714,026) (1,493,417) (3,073,867) (10,281,310) -
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES $ (11,865,833) $ 2,458,402 $ 1,373,889 $ (8,033,542) $ 8,321,801
40
CITY OF LANSING
FIDUCIARY FUND FINANCIAL STATEMENTS
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 postemployment healthcare
coverage.
Custodial Funds
54-A District Court accounts for resources held in a trustee or agent capacity. Current tax collections fund
accounts for collections of property taxes and remittances of them to the appropriate authorities.
41
CITY OF LANSING
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30,2022
Pension and
Other Post-
Employment
Benefits Trust
Funds Custodial Funds
ASSETS
Cash and cash equivalents $ 19,016,071 $ -
Equity in pooled cash and investments - 19,834
Investments
Mutual funds 412,206,036 -
Domestic equities 111,504,339 -
International equities 2,482,097 -
Emerging market equities 23,967,273 -
Money market funds 8,379,585 -
Receivables
Interest and dividends 103,075 -
Prepaids 1,725 -
TOTAL ASSETS 577,660,201 19,834
LIABILITIES
Accounts payable 490,838 -
Due to other governmental units 17,741,013 -
Due to individuals and agencies - 19,834
TOTAL LIABILITIES 18,231,851 19,834
NET POSITION RESTRICTED FOR:
Pension benefits 447,622,594 -
Other postemployment benefits 111,805,756 -
TOTAL NET POSITION $ 559,428,350 $ -
The accompanying notes are an integral part of the financial statements.
42
CITY OF LANSING
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30,2022
Pension and
Other Post-
Employment
Benefits Trust
Funds Custodial Funds
ADDITIONS TO NET POSITION
Collections from or on behalf of individuals $ - $ 383,590
Collections of taxes for other governments - 126,026,215
Miscellaneous 10,942 -
Investment income
Change in fair value of investments (65,419,880) -
Interest income (loss) (693,809) -
Investment expense (778,859) -
Net investment income (66,881,606) 126,409,805
Contributions
Employer 54,083,628 -
Plan members 4,368,664 -
Total contributions 58,452,292 --
TOTAL ADDITIONS (8,429,314) 126,409,805
DEDUCTIONS FROM NET POSITION
Payments to or on behalf of individuals - 383,590
Payment of taxes collected for other governments - 126,026,215
Participant benefits 76,836,730 -
Administrative expenses 1,871,780 -
TOTAL DEDUCTIONS 78,708,510 126,409,805
CHANGE IN NET POSITION (87,137,824) -
Net position,beginning of year 646,566,174 -
Net position,end of year $ 559,428,350 $ -
The accompanying notes are an integral part of the financial statements.
43
COMPONENT UNITS
44
CITY OF LANSING
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 five discretely presented component units:
Brownfield Redevelopment Authority
Tax Increment Finance Authority
Saginaw Street Corridor Improvement Authority
Michigan Avenue Corridor Improvement Authority
Lansing Entertainment and Public Facilities Authority
45
CITY OF LANSING
COMBINING STATEMENT OF NET POSITION
DISCRETELY PRESENTED COMPONENT UNITS
JUNE 30,2022
Lansing
Saginaw Street Michigan Avenue Entertainment
Brownfield Tax Increment Corridor Corridor and Public
Redevelopment Finance Improvement Improvement Facilities
Authority Authority Authority Authority Authority Total
ASSETS
Current assets
Cash and cash equivalents $ 17,029,019 $ - $ 13,930 $ 77,610 $ 1,788,612 $ 18,909,171
Equity in pooled cash and investments - 7,462,041 16,586 73,580 - 7,552,207
Cash and cash equivalents-restricted 3,791,897 1,225,747 - - 80,000 5,097,644
Receivables,net 45,410 - - - 1,120,265 1,165,675
Due from other governmental units 114 - - - - 114
Inventories - 72,221 72,221
Prepaids 62,598 62,598
Total current assets 20,866,440 8,687,788 30,516 151,190 3,123,696 32,859,630
Noncurrent assets
Investments-restricted - 14,827 - 14,827
Noncurrent portion of receivable,net 100,487 - - - - 100,487
Capital assets,net of accumulated depreciation 86,948 86,948
Total noncurrent assets 100,487 14,827 86,948 202,262
TOTALASSETS 20,966,927 8,702,615 30,516 151,190 3,210,644 33,061,892
LIABILITIES
Current liabilities
Accounts payable 3,754,884 229,460 - - 575,777 4,560,121
Accrued liabilities - - 403,742 403,742
Current portion of accrued interest payable 269,576 9,178 - 278,754
Due to other governmental units 8,041,034 - - - - 8,041,034
Unearned revenue - - 459,428 459,428
Current portion of long-term obligations 673,913 2,119,137 40,519 2,833,569
Total current liabilities 12,739,407 2,357,775 1,479,466 16,576,648
Noncurrent liabilities
Noncurrent portion of long-term obligations 38,783,885 40,271,324 - - 20,565 79,075,774
Accrued interest payable,net of current portion 95,898 95,898
Total noncurrent liabilities 38,783,885 40,367,222 20,565 79,171,672
TOTAL LIABILITIES 51,523,292 42,724,997 1,500,031 95,748,320
DEFERRED INFLOW OF RESOURCES
Deferred gain on refunding 1,131,356 1,131,356
NET POSITION(DEFICIT)
Net investment in capital assets - - - - 25,864 25,864
Restricted for capital projects - - - - 80,000 80,000
Restricted for redevelopment projects 3,791,897 1,225,747 - 5,017,644
Unrestricted (34,348,262) (36,379,485) 30,516 151,190 1,604,749 (68,941,292)
TOTAL NET POSITION(DEFICIT) $ (30,556,365) $ (35,153,738) $ 30,516 $ 151,190 $ 1,710,613 $ (63,817,784)
The accompanying notes are an integral part of the financial statements.
46
CITY OF LANSING
COMBINING STATEMENT OF ACTIVITIES
DISCRETELY PRESENTED COMPONENT UNITS
YEAR ENDED JUNE 30,2022
Lansing
Saginaw Street Michigan Avenue Entertainment
Brownfield Tax Increment Corridor Corridor and Public
Redevelopment Finance Improvement Improvement Facilities
Authority Authority Authority Authority Authority Total
EXPENSES
Brownfield redevelopment authority $ 17,427,056 $ - $ - $ $ $ 17,427,056
Community development - (2,257,609) - (2,257,609)
Recreation and culture - 6,485,452 6,485,452
TOTAL EXPENSES 17,427,056 (2,257,609) - 6,485,452 21,654,899
PROGRAM REVENUES
Charges for services - - 5,428,872 5,428,872
Operating grants and contributions 194,444 1,539,600 1,734,044
TOTAL PROGRAM REVENUES 194,444 - - 6,968,472 7,162,916
NET PROGRAM(EXPENSE)REVENUE (17,232,612) 2,257,609 - 483,020 (14,491,983)
GENERAL REVENUES
Property taxes 7,585,284 4,570,190 7,673 62,000 - 12,225,147
Unrestricted investment earnings(loss) 7,926 (9,766) - - - (1,840)
Other - - - - 680,163 680,163
TOTAL GENERAL REVENUES 7,593,210 4,560,424 7,673 62,000 680,163 12,903,470
CHANGE IN NET POSITION (9,639,402) 6,818,033 7,673 62,000 1,163,183 (1,588,513)
Net position(deficit),beginning of year (20,916,963) (41,971,771) 22,843 89,190 547,430 (62,229,271)
Net position(deficit),end of year $ (30,556,365) $ (35,153,738) $ 30,516 $ 151,190 $ 1,710,613 $ (63,817,784)
The accompanying notes are an integral part of the financial statements.
47
NOTES TO FINANCIAL STATEMENTS
48
CITY OF LANSING
INDEX- NOTES TO FINANCIAL STATEMENTS
Page
Note 1 - Summary of Significant Accounting Policies..................................................................................................50
Note2 - Budgetary Information...............................................................................................................................................60
Note3 -Deficit Fund Equity........................................................................................................................................................61
Note4-Deposits and Investments.........................................................................................................................................62
Note5 - Receivables........................................................................................................................................................................70
Note6 - Capital Assets....................................................................................................................................................................71
Note 7 -Accounts Payable and Accrued Liabilities.......................................................................................................73
Note 8 -Interfund Receivables,Payables,and Transfers..........................................................................................73
Note9 -Long-term Obligations.................................................................................................................................................74
Note 10-Fund Balances- Governmental Funds.............................................................................................................80
Note 11-Net Investment in Capital Assets........................................................................................................................80
Note 12 -Segment Information-Enterprise Funds......................................................................................................81
Note13 -Risk Management........................................................................................................................................................81
Note14-Property Taxes..............................................................................................................................................................82
Note15- Contingent Liabilities................................................................................................................................................82
Note16-Pension Plans.................................................................................................................................................................82
Note 17- Other Postemployment Benefits........................................................................................................................96
Note18-Tax Abatements...........................................................................................................................................................108
Note 19-Assets Held by Foundation....................................................................................................................................109
Note 20- Change in Accounting Principles...........................................................................................................109
Note 21-Upcoming Accounting Pronouncements.......................................................................................................110
Note22 -Subsequent Event.......................................................................................................................................................111
49
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 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 City of Lansing 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 enterprise 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 discretely presented component units are as follows:
The Lansing Brownfield RedevelopmentAuthority("LBRA")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 LBRA 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.
50
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Discretely Presented Component Units (continued).
Tax increment financing permits the LBRA 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 LBRA 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 Saginaw Street Corridor Improvement Authority ("SSCIA") was created in 2009 with the goals to
correct and prevent deterioration in the business district,redevelop the city's commercial corridors and
promote economic growth. The Authority followed several key principles that were used in the creation
of the plan and are supported by the city's master plan to transform the visually unappealing character
of the corridor,to encourage pedestrians and to market the quality of the adjacent neighborhoods. In
2019, the development and tax increment financing plans were approved and allow the Authority to
begin its first steps in executing the vision set forth by the corridor's residents, businesses, and other
stakeholders. The Authority's governing body is appointed by the Mayor with the advice and consent of
the City Council. The Authority relies on tax increment revenues as available, along with grants and
other revenues. If there are bond issuances to fund the above activities,they are approved by the City
Council and the legal liability for the debt remains with the City.
The Michigan Avenue Corridor Improvement Authority("MACIA") was created in 2009 with the goals to
correct and prevent deterioration in the business district,redevelop the city's commercial corridors and
promote economic growth. The Development and Tax Increment Financing plans arrange projects into
three categories: public infrastructure, current and prevent deterioration, and promote neighborhood
aligned economic growth. In 2019, the development and tax increment finance plans were approved
and allow the Authority to begin its first steps in executing the vision set forth by the corridor's residents,
businesses,and other stakeholders. The Authority's governing body is appointed by the Mayor with the
advice and consent of the City Council. The Authority relies on tax increment revenues as available,
along with grants and other revenues. If there are bond issuances to fund the above activities,they 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, Michigan 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,Center Park Productions,
Grosbeck Golf Course,and the Jackson Field.
51
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Discretely Presented Component Units (concluded).
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.
Component Unit Financial Statements
Complete financial statements for the following individual component units may be obtained from each
entity's administrative offices. Because separately issued financial statements are readily available for these
component units, detailed notes applicable to each Component Unit are not duplicated here in accordance
with GASB 61.
City of Lansing Building Authority
8th Floor
124 West Michigan Avenue
Lansing,Michigan 48933
Brownfield Redevelopment Authority/Tax Increment Finance Authority
1000 S.Washington Avenue,Suite 201
Lansing,Michigan 48910
Lansing Entertainment and Public Facilities Authority
333 East Michigan Avenue
Lansing,Michigan 48933
For the SSCIA and the MACIA,these discretely presented component units financial statements are included
in the City's audited financial statements and are not audited separately.
Fiduciary Component Unit
The Pension and Other Postemployment Benefits Trust Funds were established to account for the assets set
aside to fund the City's pension and OPEB plans. The primary purpose of the Trusts are to provide the
necessary funding for pension payments and retiree healthcare coverage provided to eligible City employees
during retirement. The Trusts were established with a Board of Trustees made from individuals from the
City, Council, retirement plans, and the public for each of the Employees' Retirement System and Police
Officers'and Fire Fighters' Retirement System. The assets of the Trusts are for the exclusive benefit of the
participants and their beneficiaries, and the assets shall not be diverted to any other activity prior to the
satisfaction of all liabilities. The assets are protected from any of the City's creditors. The respective Boards
of Trustees have the ability to exercise responsibility,specifically in the area of designation of management.
52
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Joint Venture
In 1998,the City entered into an agreement with Ingham County(the"County")to form the City of Lansing
and County of Ingham Joint Building Authority(JBA)for the purpose of constructing and managing a building
in downtown Lansing that houses the courts,prosecuting attorney,and other related departments. The JBA
is governed by a three-member board composed of one member each appointed by the City and the County
and one appointed jointly by the two units. Both the County and the City contribute cash and/or property
to the JBA. Bonds were issued in 1999 by the IBA to provide the funding necessary to construct the building.
Because the joint venture agreement does not provide an explicit contractual formula outlining the City's
claim to the JBA's assets,it is considered to be a"joint venture with no equity interest"and accordingly,no
amounts are reported in the accompanying financial statements for an equity interest. Financial information
for the IBA may be obtained by writing the Ingham County Financial Services Division,P.O.Box 319,Mason,
Michigan 48854.
Government-wide and Fund Financial Statements
The government-wide financial statements(i.e.,the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and its component units.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities,which rely to a significant extent on fees and charges for
support. Likewise,the primary government is reported separately from certain component units for which
the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase,use,or directly benefit from goods,services,or privileges provided by a given function or segment
and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds,proprietary funds,and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus.Basis of Accounting.and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
53
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Measurement Focus.Basis of Accounting.and Financial Statement Presentation(continued).
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. Expenditures generally are recorded when a liability is
incurred,as under accrual accounting. However,debt service expenditures,as well as expenditures related
to compensated absences and claims and judgments,are recorded only when payment is due.
Property taxes,intergovernmental revenue,licenses,and interest associated with the current fiscal period
are all considered to be susceptible to accrual and as such have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
General Fund. This fund is the City's primary operating fund. It accounts for all the financial resources
of the primary government,except those accounted for and reported in another fund.
State and Federal Grant Fund. This Special Revenue fund accounts for all revenues from intergovernmental
grants and various contributions. These revenues are used for projects as detailed in individual grant
applications.
CERA-MSHDA Grant Fund-This fund accounts for all revenues received from the CERA grant through the
Michigan State Housing Development Authority. 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 activities of the 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.
54
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Measurement Focus.Basis of Accounting.and Financial Statement Presentation (concluded).
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.
Permanent Funds account 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,health care and
self-insurance services,engineering,and information technology.
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 postemployment benefit distributions.
The Custodial Funds accounts for resources held in a fiduciary capacity for the 54-A District Court,and
property taxes collected and distributed to other governments.
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. Also, current internal balances between governmental activities and
fiduciary activities have not been eliminated.
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.
Restricted net position are amounts that are subject to restrictions beyond the government's control. The
restrictions may be externally imposed or imposed by law. When both restricted and unrestricted resources
are available for use, it is the government's policy to use restricted resources first, then unrestricted
resources as they are needed.
55
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity
Deposits and Investments
Restricted cash consists of amounts required to be maintained separately in accordance with bond
covenants or other restrictions limiting usage of amounts in certain accounts.
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 position/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.
State statutes authorize the City to invest in:
Bonds, securities, other obligations and repurchase agreements of the United States, or an agency or
instrumentality of the United States.
Certificates of deposit,savings accounts,deposit accounts or depository receipts of a qualified financial
institution.
Commercial paper rated at the time of purchase within the two highest classifications established by not
less than two standard rating services and that matures not more than 270 days after the date of purchase.
Bankers'acceptances of United States banks.
Obligations of the State of Michigan and its political subdivisions,that,at the time of purchase are rated
as investment grade by at least one standard rating service.
Mutual funds registered under the Investment Company Act of 1940 with the authority to purchase only
investment vehicles that are legal for direct investment by a public corporation.
External investment pools as authorized by Public Act 20 as amended through December 31, 1997.
Investments are stated at fair value. Short-term investments are reported at cost,which 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/Payabl es
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible.
Amounts due from other governments include amounts due from grantors for specific programs and capital
projects and for capture property tax revenues not received by applicable component units as of year-end.
Program grants and capital grants for capital assets are recorded as receivables and revenues at the time
reimbursable project costs are incurred. Amounts received in advance of project costs being incurred are
reported as unearned revenue.
56
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity(continued
Receivables/Payables(concluded)
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either due to/from other funds (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 activities and business-type activities are reported in the government-wide financial
statements as internal balances.
Certain receivables in governmental funds consist of rehabilitation and redevelopment loans that are
generally not expected or scheduled to be collected in the subsequent year.
Contract receivable consist of amounts collectible from local municipalities for which the City has
irrevocably pledged its full faith and credit as collateral for certain construction and improvement bonds. In
accordance with contractual agreements, these entities will provide all future amounts due for bond
principal and accrued interest payable. The receivable has been reported as current based on the amounts
to be collected next year to satisfy obligations.
Inventories and Prepaids
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. In governmental funds, prepaid
items are charged to expenditures using the consumption method.
Capital Assets
Capital assets, which include property, plant, equipment, flowage rights, 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 are defined by the City as assets having a useful life in excess of three years and
whose costs exceed$5,000($100,000 for buildings). Capital assets are stated at historical cost or estimated
historical cost where actual cost information is not available. Donated capital assets are recorded at their
estimated acquisition cost as of the donation date.
In addition to land and construction in progress, the amount presented as capital assets not being
depreciated includes intangible assets consisting of land development rights acquired for the purpose of
farmland and ranch preservation. Land development rights are deemed to have an indefinite useful life,and
therefore are not being amortized.
57
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity(continued
Capital Assets(concluded)
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. Interest incurred during the construction phase of capital assets of business-type activities,
if any, is included as part of the capitalized value of the asset constructed. Capital assets 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
Flowage rights 30
Infrastructure 10-75
The City reviews long-lived assets for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset exceeds its fair value. If it is determined that an impairment loss has
occurred,the asset is written down to its net realizable value and a current charge to income is recognized.
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element,deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s)and so will not be recognized as an
outflow of resources(expense/expenditure)until then. The City reports a deferred charge on advance bond
refunding for the difference in the carrying value of refunded debt and its reacquisition price. This amount
is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also reports
deferred outflows of resources for changes in expected and actual investments returns, assumptions, and
benefits provided,related to the net pension and other postemployment benefit liabilities.
Compensated Absences
The City permits 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% 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.
Unearned Revenue
Unearned revenue consists of amounts received prior to the delivery of goods/service or expenditure on
allowable costs.
58
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity(continued
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 statement of net position. Bond premiums and
discounts 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 expenses
when incurred.
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.
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net assets that applies to one or more future periods and so will not be
recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable
revenues, which arise only under a modified accrual basis of accounting that are reported as deferred
inflows of resources. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available. The City also reports deferred inflows of resources for changes in
expected and actual investments returns,assumptions,and benefits provided,related to the net pension and
other postemployment benefit liabilities when applicable.
Fund Balances
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 Council has not delegated the authority to assign fund
balance. Unassigned fund balance is the residual classification for the General Fund. In other funds, the
unassigned classification is used to report a deficit balance resulting from overspending for specific
purposes for which amounts had been restricted,committed,or assigned,when applicable.
When the City incurs an expenditure for purposes for which various fund balance classifications can be used,
it is the City's policy to use restricted fund balance first,then committed,assigned,and finally unassigned.
59
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(concluded)
Assets.Deferred Outflows of Resources. Liabilities,Deferred Inflows of Resources,and Equity(concluded
Interfund Transactions
During the course of normal operations, the City has numerous transactions between funds, including
expenditures and transfers of resources to provide services, construct assets, and service debt. The
accompanying financial statements generally reflect such transactions as transfers. Operating subsidies are
also recorded as transfers. The amounts recorded as subsidies or advances are determined by the City.
Balances outstanding at year-end are reported as due to/from other funds. Transfers between
governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial
statements. Internal service funds are used to record charges for services to all City departments and funds
as transfers or operating revenue. All City funds record these payments to the internal service funds as
transfers or operating expenditures/expenses.
Pension and Other Postemployment Benefit Plans
For purposes of measuring the net pension and other postemployment benefit liabilities,deferred outflows
of resources and deferred inflows of resources related to pensions and other postemployment benefits,and
pension and other postemployment benefit expense, information about the fiduciary net position of the
plans and additions to/deductions from the plan fiduciary net position have been determined on the same
basis as they are reported by the plans. For this purpose,benefit payments (including refunds of employee
contributions)are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly,actual results could differ from those estimates.
The City utilizes various investment instruments which are exposed to various risks, such as interest rate,
credit,and overall market volatility. Due to the level of risk associated with certain investment securities,it
is reasonably possible that changes in the values of investment securities will occur in the near-term and
that such changes could materially affect the amounts reported in the financial statements.
NOTE 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.
➢ Public hearings are conducted to obtain taxpayer comments.
➢ Not later than the third Monday in May,the Council adopts a budget through passage of a resolution.
60
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -BUDGETARY INFORMATION (concluded)
➢ 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. Within the General Fund, the legal
level of budgetary control is the mandatory expenditure accounts (personal services, supplies and
operating expenses, capital outlay, debt service, transfers, and contingency) within each department.
Within other funds,the legal level of budgetary control is the mandatory expenditure accounts(personal
services, supplies and operating expenses, capital outlay, debt service, transfers, and contingency)
within that fund. Transfers between appropriations (mandatory accounts) require City Council
approval. An exception to City Council approval is allowed by City Charter for transfers between
appropriations (mandatory accounts) for amounts less than five thousand dollars, but not in excess of
15%of the appropriation in cases where five thousand dollars exceeds 15%of the appropriation.
Copies of the City's separately issued budget report may be obtained from the Finance Department, 124 West
Michigan Avenue,Lansing,Michigan 48933 or on the City's website at www.lansingmi.gov.
➢ 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").
➢ Appropriations lapse at year-end for all annual budgets. Appropriations are automatically carried
forward for project-type budgets.
NOTE 3 -DEFICIT FUND EQUITY
The Cemetery,Garbage and Rubbish Collection,and Recycling Enterprise Funds reported deficits in unrestricted
net position of$1,380,849,$2,006,521,and$5,657,833,respectively,primarily as a result of the recognition of
net pension and net other postemployment benefit liabilities in these funds.
The Tax Increment Finance Authority and the Brownfield Redevelopment Authority component units reported
deficits in unrestricted net position of$36,379,485 and$34,348,262,respectively at June 30,2022. The deficits
are a result of full-accrual accounting for long-term obligations,without reflecting a corresponding receivable
for tax captures to be received in future periods(which cannot be accrued in accordance with generally accepted
accounting principles).
61
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances for the primary government and component
units(including both pooled cash and investments as well as pension and other postemployment benefit(OPEB)
trust fund balances) as of June 30,2022:
Primary Component Fiduciary Reporting
Government Units Funds Entity
Cash and cash equivalents $ 47,518,640 $ 18,909,171 $ 19,016,071 $ 85,443,882
Equity in pooled cash and investments 78,948,106 7,552,207 19,834 86,520,147
Cash and cash equivalents-restricted 5,434,234 5,097,644 - 10,531,878
Investments - 14,827 558,539,330 558,554,157
$ 131,900,980 $ 31,573,849 $ 577,575,235 $ 741,050,064
Deposits and investments
Bank deposits
Checking/savings accounts-Pension&OPEB related-nonpooled $ 19,016,071
Checking/savings accounts-City-wide accounts-all other 141,491,380
Investment in securities and mutual funds
Pooled investments 20,984,559
Employees'retirement system investments 187,317,505
Police and fire retirement system investments 331,499,331
Employees'money purchase pension plan investments 4,549,579
Retiree health care VEBA investments 35,172,914
Tax increment finance authority investments-pooled investments 860,565
Total investment in securities and mutual funds 740,891,904
Cash on hand 158,159
Total $ 741,050,063
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,
$160,017,893 of the City's bank balance of$162,812,593 was exposed to custodial credit risk because it was
uninsured and uncollateralized. The book balance of all deposits (other than pension & OPEB related) was
$160,507,451.
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.
62
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS(continued)
Custodial Credit Risk-Investments
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. Disclosure related to the TIFA pooled investment are described in their separately issued,
readily available financial statements so they are not presented here in accordance with GASB 61.
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:
S&P AAAm $ 5,013,204
A 3,250,611
BBB 11,617,629
Not rated 850,722
Assets not subject to credit risk 252,393
$ 20,984,559
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. For investments held at year end maturities are as follows:
Due within 1 year $ 20,304,264
1-5 years 429,212
No maturity 251,083
$ 20,984,559
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.
63
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4- DEPOSITS AND INVESTMENTS (continued)
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset, as determined by the City's investment advisors. Level 1 inputs are quoted prices in active markets
for identical assets; level 2 inputs are significant other observable inputs; level 3 inputs are significant
unobservable inputs.
Securities traded on a national or international exchange are valued at the last reported sales price at current
exchange rates. Debt securities are valued by the City's investment custodian using independent pricing services
based on the type of asset. The pricing services may use valuation models or matrix pricing,which consider: (a)
benchmark yields, (b) reported trades, (c) broker/dealer quotes, (d) benchmark securities, (e) bids or offers,
and (f) reference data. The City's level 2 investments as noted in the table below are valued using significant
other observable inputs of the underlying securities.
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
U.S.treasuries $ - $ 850,722 $ - $ 850,722
Commercial paper - 14,868,240 - 14,868,240
Money market funds 252,393 - - 252,393
$ 252,393 $ 15,718,962 $ - 15,971,355
Investments carried at net asset value
Michigan CLASS government investment pool 5,013,204
$ 20,984,559
Investments in Entities that Calculate Net Asset Value per Share
The City holds shares in Michigan CLASS whereby the fair value of the investment is measured on a recurring
basis using net asset value per share(or its equivalent) of the investment pool as a practical expedient. It has a
rating of AAAm from Standard and Poor's with a weighted average maturity of 36 days.
At year end,the net asset value of the City's investment in Michigan CLASS was$5,013,204. The investment pool
had no unfunded commitments, specific redemption frequency or redemption notice period required. The
Michigan CLASS investment pool invests in U.S. treasury obligations, federal agency obligations of the U.S.
government, high-grade commercial paper (rated 'A-1' or better) collateralized bank deposits, repurchase
agreements (collateralized at 102% by Treasuries and agencies), and approved money-market funds. The
program seeks to provide safety,liquidity,convenience,and competitive rates of return,and is designed to meet
the needs of Michigan public sector investors. It purchases securities that are legally permissible under state
statutes and are available for investment by Michigan counties, cities, townships, school districts, authorities,
and other public agencies.
64
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4- DEPOSITS AND INVESTMENTS(continued)
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 maintain demand deposit accounts and equity in pooled cash to handle
operational transactions. The book balance of such deposits totaled$19,016,071 at year end.
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.
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, 2022:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
Domestic corporate security mutual funds $ 13,552,775 $ 28,565,101 $ $ $ 42,117,876
Domestic equities
Not on securities loan 28,621,067 56,336,367 84,957,434
On securities loan 10,018,259 16,528,646 26,546,905
International equities
Not on securities loan 461,659 916,956 1,378,615
On securities loan 421,278 682,204 1,103,482
Emerging markets equities 8,323,496 14,668,603 975,174 23,967,273
Real estate investment mutual funds 23,302,794 31,408,488 - 54,711,282
International equity mutual funds 77,957,940 136,832,026 206,392 3,788,033 218,784,391
Domestic equity mutual funds 20,421,271 41,676,467 3,664,310 14,306,474 80,068,522
Domestic debt securities mutual funds - - 678,877 15,845,088 16,523,965
Money market funds 4,236,966 3,884,473 - 258,146 8,379,585
$ 187,317,505 $ 331,499,331 $ 4,549,579 $ 35,172,915 $ 558,539,330
65
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
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
&Poor's as follows:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
AAA $ $ - $ 622,856 $ 9,208,123 $ 9,830,979
S&P AAAm - - 258,147 258,147
AA - 663 679,193 679,856
A - - 1,358,252 1,358,252
BBB - 55,358 3,112,564 3,167,922
BB - - 772,990 772,990
B - 198,687 198,687
Not rated 17,789,741 32,449,574 - 515,279 50,754,594
Assets not subject to credit risk 169,527,764 299,049,757 3,870,702 19,069,680 491,517,903
$ 187,317,505 $ 331,499,331 $ 4,549,579 $ 35,172,915 $ 558,539,330
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
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.
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.
66
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4- DEPOSITS AND INVESTMENTS (continued)
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 Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
International equities
Canada $ 531,823 $ 933,790 $ $ - $ 1,465,613
Italy 14,495 29,357 - 43,852
United Kingdom 87,014 176,473 - 263,487
France 122,397 243,034 - 365,431
Israel 127,208 216,506 - 343,714
International mutual funds 77,957,940 136,832,026 206,392 3,788,033 218,784,391
$ 78,840,877 $ 138,431,186 $ 206,392 $ 3,788,033 $ 221,266,488
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 30,2022,maturities
of the City's pension and other postemployment benefits trust debt securities, money market funds, and
collateralized mortgage obligations were as follows:
Employee Retirement System
Fixed income investments with no maturity
Domestic corporate securities mutual funds $ 13,552,775
Money market funds 4,236,966
$ 17,789,741
Police and Fire Retirement System
Fixed income investments with no maturity
Domestic corporate securities mutual funds $ 28,565,101
Money market funds 3,884,473
$ 32,449,574
67
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
Interest Rate Risk(concluded)
Employees'Money Purchase Pension Plan
Investment Maturities(fair value by years)
Less than 1 1-5 6-10 More than 10 Total
Domestic debt securities mutual funds $ $ 483,225 $ 195,652 $ - $ 678,877
Retiree Healthcare VEBA
Investment Maturities(fair value by years)
Less than 1 1-5 6-10 More than 10 Total
Domestic debt securities mutual funds $ $ 10,531,989 $ 5,313,099 $ - $ 15,845,088
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%of the
fair value of the securities lent and may not fall below 95%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, 2022,the fair value of securities on loan by the Employees' Retirement System and
the Police and Fire Retirement System were $10,439,537 and $17,210,850, respectively, for which the Plans'
received cash collateral of$10,797,687 and$17,757,478,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.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset, as determined by the City's investment advisors. Level 1 inputs are quoted prices in active markets
for identical assets; level 2 inputs are significant other observable inputs; level 3 inputs are significant
unobservable inputs.
Securities traded on a national or international exchange are valued at the last reported sales price at current
exchange rates. Debt securities are valued by the Plans' investment custodian using independent pricing
services based on the type of asset. The pricing services may use valuation models or matrix pricing, which
consider: (a)benchmark yields,(b)reported trades,(c)broker/dealer quotes,(d)benchmark securities,(e)bids
or offers, and (f) reference data. Asset-backed and mortgage-backed securities funds are valued based on the
future cash flows of the principal and interest payments of the underlying collateral of mortgages on various
assets. The Plans'level 2 investments as noted in the tables below are valued using significant other observable
inputs of the underlying securities.
68
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
Fair Value Measurement(continued)
The City has the following recurring fair value measurements as of June 30, 2022:
Employee Retirement System
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Domestic equities $ 38,639,326 $ - $ - $ 38,639,326
International equities 882,937 - - 882,937
Emerging market equities 8,323,496 - - 8,323,496
Mutual funds 111,931,986 11,319,855 - 123,251,841
Money market funds 4,236,966 - - 4,236,966
$ 164,014,711 $ 11,319,855 $ - 175,334,566
Investments carried at net asset value
Real estate investment trusts 11,982,939
$ 187,317,505
Police and Fire Retirement System
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Domestic equities $ 72,865,013 $ - $ - $ 72,865,013
International equities 1,599,160 - - 1,599,160
Emerging market equities 14,668,603 - - 14,668,603
Mutual funds 186,254,666 16,298,214 - 202,552,880
Money market funds 3,884,473 - - 3,884,473
$ 279,271,915 $ 16,298,214 $ - 295,570,129
Investments carried at net asset value
Real estate investment trusts 15,110,275
International equity mutual funds 20,818,927
$ 331,499,331
69
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (concluded)
Fair Value Measurement(concluded).
Net Asset Value Investments - Certain investments noted above are carried at net asset value as these are not
actively traded. The fair value is estimated based on the dollar value per share as of June 30, 2022. These
investments are able to be liquidated as needed,to the extent there is a willing buyer in the market. There are
not any restrictions related to the sale of these investments. At June 30, 2022, the City has $1,226,639
outstanding on initial commitments of$4,300,000 with the Invesco Mortgage Recovery Fund (the"Fund"). The
Fund has a seven-year life,and the intent is to sell all of the investments prior to the Fund's maturity. The other
investments at net asset value do not contain required redemption periods.
Employees'Money Purchase Pension Plan
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Mutual funds $ 4,549,579 $ $ $ 4,549,579
Retiree Healthcare VEBA
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Emerging market equities $ 975,174 $ $ $ 975,174
Mutual funds 33,939,594 33,939,594
Money market funds 258,146 258,146
$ 35,172,914 $ $ $ 35,172,914
NOTE 5 -RECEIVABLES
Receivables are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts receivable $ 22,797,917 $ 7,438,481 $ 1,145,545
Taxes receivable 1,086,572 - -
Special assessments receivable 10,714,739 - -
Loans receivable 1,216,880 - 145,897
Contracts receivable 1,322,060 - -
Accrued interest receivable 2,350,196 168,890 -
Due from other governments 22,567,378 26,101,046 114
Contract receivable - 18,830,489 -
Allowance for uncollectable accounts (399,500) (10,000) (25,280)
$ 61,656,242 $ 52,528,906 $ 1,266,276
Amount not expected to be collected within one year $ 19,718,161 $ 17,867,866 $ 100,487
70
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 6- CAPITAL ASSETS
Capital asset activity for the year ended June 30,2022,was as follows:
Balance Additions/ Deletions/ Balance
July 1,2021 Reclassifications Reclassifications June 30,2022
Governmental Activities
Capital assets not being depreciated
Land $ 25,435,297 $ - $ - $ 25,435,297
Construction in process 9,113,448 15,071,940 (656,760) 23,528,628
Subtotal 34,548,745 15,071,940 (656,760) 48,963,925
Capital assets being depreciated
Land improvements 28,722,283 231,611 - 28,953,894
Equipment and vehicles 43,995,848 1,855,453 (1,434,444) 44,416,857
Buildings 136,413,057 1,923,384 - 138,336,441
Flowage rights 20,032,880 - - 20,032,880
Infrastructure 314,769,874 4,541,961 319,311,835
Subtotal 543,933,942 8,552,409 (1,434,444) 551,051,907
Less accumulated depreciation for:
Land improvements (14,849,775) (1,178,107) - (16,027,882)
Equipment and vehicles (36,256,665) (2,433,602) 1,383,689 (37,306,578)
Buildings (99,745,479) (4,399,2451 - (104,144,724)
Flowage rights (667,7631 - (667,7631
Infrastructure (228,712,425) (5,313,727) - (234,026,152)
Subtotal (379,564,344) (13,992,444) 1,383,689 (392,173,099)
Net capital assets being depreciated 164,369,598 (5,440,035) (50,755) 158,878,808
Capital assets,net $ 198,918,343 $ 9,631,905 $ (707,515) $ 207,842,733
At June 30, 2022, the City's governmental activities had outstanding commitments through construction
contracts of approximately$44,101,000.
Depreciation expense was charged to the following governmental activities:
Depreciation of governmental activities by function
General government $ 1,043,526
Public safety 753,597
Public works 5,409,502
Recreation and culture 3,074,404
Community and economic development 1,601,646
Internal service fund 2,109,769
Total depreciation expense-governmental activities $ 13,992,444
71
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 6- CAPITAL ASSETS (concluded)
Balance Additions/ Deletions/ Balance
July 1,2021 Reclassifications Reclassifications June 30,2022
Business-Type Activities
Capital assets not being depreciated
Land $ 12,369,507 $ - $ - $ 12,369,507
Construction in progress 31,640,552 10,403,508 (20,885,792) 21,158,268
Subtotal 44,010,059 10,403,508 (20,885,792) 33,527,775
Capital assets being depreciated
Land improvements 30,077,106 - 30,077,106
Equipment and vehicles 10,299,319 577,259 10,876,578
Buildings 193,558,507 1,330,617 194,889,124
Sewers 344,735,339 20,081,880 364,817,219
Subtotal 578,670,271 21,989,756 600,660,027
Less accumulated depreciation for:
Land improvements (27,157,621) (573,902) (27,731,523)
Equipment and vehicles (7,532,817) (433,140) (7,965,957)
Buildings (121,006,399) (4,045,371) (125,051,770)
Sewers (123,034,766) (7,001,410) (130,036,176)
Subtotal (278,731,603) (12,053,823) (290,785,426)
Net capital assets being depreciated 299,938,668 9,935,933 309,874,601
Capital assets,net $ 343,948,727 $ 20,339,441 $ (20,885,792) $ 343,402,376
At June 30, 2022, the City's business-type activities had outstanding commitments through construction
contracts of approximately$1,679,000.
Depreciation expense was charged to the following business-type activities:
Depreciation of business-type activities by function
Sewage disposal system $ 9,898,880
Municipal parking system 2,067,069
Cemetery 9,827
Golf 72,681
Recycling 5,366
Total depreciation expense-business-type activities $ 12,053,823
72
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 7-ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts payable $ 16,329,860 $ 6,512,718 $ 4,560,121
Accrued payroll 3,402,638 192,504 -
Deposits payable - 81,782 -
Due to other governments 1,770,692 - 8,041,034
Claims incurred but not reported 1,500,000 - -
Other 2,084,981 - 403,742
$ 25,088,171 $ 6,787,004 $ 13,004,897
NOTE 8-INTERFUND RECEIVABLES,PAYABLES,AND TRANSFERS
The composition of interfund balances of the primary government as of June 30, 2022,was as follows:
Due to and from primary government funds
Due to Sewer Disposal System Fund
Municipal Parking System fund $ 1,867,157
State&Federal Grant fund 3,738,427
CERA-MSHDA fund 51,133
Nonmajor governmental funds 478,834
$ 6,135,551
The above balance generally resulted from a time lag between the dates that interfund goods and services were
provided or reimbursable expenditures occur, transactions were recorded in the accounting system, and
payments between funds were made.
For the year ended June 30,2022,interfund transfers consisted of the following:
Transfers to General Fund from:
Nonmajor governmental funds (1) $ 100,000
Transfers to State and Federal Grants Fund from:
General fund (3) $ 235,859
73
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 8-INTERFUND RECEIVABLES,PAYABLES,AND TRANSFERS (concluded)
Transfers to nonmajor governmental funds from:
General fund (3) $ 5,847,000
Nonmajor enterprise funds (2) 28,000
Nonmajor governmental funds (1)(2) 4,000,000
$ 9,875,000
Transfers to nonmajor enterprise funds from:
Nonmajor governmental funds (2) $ 625,000
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 to assist in covering specific outlays or general operational costs as
applicable; (2) move receipts restricted to or allowed for debt service or capital projects from the funds
collecting the receipts to the respective fund as debt service payments become due or capital outlay is
constructed; and (3) use unrestricted revenues collected in the General Fund to finance various programs
accounted for in other funds in accordance with budgetary authorizations.
NOTE 9-LONG-TERM OBLIGATIONS
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:
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rates Amount July 1,2021 (Deletions) June 30,2022 One Year
Governmental Activities
2013 Energy Efficiency Refunding Bonds-Limited Tax 1/15/2013 2.40% $ 5,645,000 $ 655,000 $ (655,000) $ - $ -
2010 Recovery Zone Economic Development Bonds 12/13/2010 3.40%-7.25% 3,200,000 - - - -
2015 Lansing Center Refunding Bonds-Limited Tax 12/17/2015 2.00%-3.00% 1,770,000 310,000 (310,000) - -
2018 Michigan Transportation Fund Bonds 9/12/2018 3.50% 1,665,000 570,000 (570,000) - -
2019 General Obligation Refunding-Limited Taxi' 4/10/2019 3.00%-4.00% 6,938,699 6,390,300 (561,000) 5,829,300 576,300
2021 Capital Improvement Bonds,Series 2021(LTGO) 12/21/2021 2.15% 4,490,000 - 4,185,000 4,185,000 260,000
Montgomery Drain District-Series 2020A G.O.Bonds 9/8/2020 3.00% 20,032,880 20,032,880 (417,880) 19,615,000 370,000
Total Governmental Activities 43,741,579 27,958,180 1,671,120 29,629,300 1,206,300
74
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS(continued)
General Obligation Bonds (concluded)
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rates Amount July 1,2021 (Deletions) June 30,2022 One Year
Business-type Activities
2009 Building Authority Refunding Bonds-Limited Tax 11/9/2009 6.25%-6.85% 8,161,691 1,905,641 (763,908) 1,141,733 711,080
2014 Building Authority Refunding Bonds-Limited Tax 3/21/2014 4.75% 7,245,000 - - - -
2015 Building Authority Refunding Bonds-Limited Tax 12/17/2015 2.00%-3.00% 6,765,000 1,185,000 (1,185,000) - -
2017 Building Authority Refunding Bonds-Limited Tax 12/11/2017 3.305%-4.075% 10,805,000 10,805,000 - 10,805,000 -
2020 Building Authority Refunding Bonds-Limited Tax 8/13/2020 0.621%-2.793% 8,735,000 8,635,000 (100,000) 8,535,000 100,000
2000 Limited Tax Sewer Bond-5005-12 3/30/2000 2.50% 9,447,830 - - - -
2001 Limited Tax Sewer Bond-5005-13 3/29/2001 2.50% 10,573,046 648,046 (648,046) - -
2002 Limited Tax Sewer Bond-5005-14 3/28/2002 2.50% 12,381,131 2,226,131 (725,000) 1,501,131 740,000
2003 Limited Tax Sewer Bond-5005-15 3/27/2003 2.50% 10,145,688 2,420,688 (585,000) 1,835,688 605,000
2004 Limited Tax Sewer Bond-5005-16 3/25/2004 2.125% 3,842,649 1,092,649 (210,000) 882,649 215,000
2005 Limited Tax Sewer Bond-5005-17 3/25/2004 2.125% 8,003,778 2,248,778 (435,000) 1,813,778 445,000
2005 Limited Tax Sewer Bond-5005-18 3/34/200S 1.62S% 13,389,371 4,069,371 (680,000) 3,389,371 680,000
2006 Limited Tax Sewer Bond-5005-19 3/30/2006 1.625% 18,216,346 6,811,346 (950,000) 5,861,346 960,000
2007 Limited Tax Sewer Bond-5005-20 3/29/2007 1.625% 24,244,726 10,109,726 (1,225,000) 8,884,726 1,250,000
2008 Limited Tax Sewer Bond-5005-21 4/1/2008 2.50% 27,494,933 13,995,453 (1,405,000) 12,590,453 1,440,000
2008 Limited Tax Sewer Bond-5005-22 4/17/2009 2.50% 14,455,604 8,765,604 (700,000) 8,065,604 720,000
2010 Limited Tax Sewer Bond-5411-01 1/22/2010 2.50% 8,548,000 5,538,000 (415,000) 5,123,000 420,000
2015 Limited Tax Sewer Bond-5211-01 4/9/2014 2.50% 3,372,405 2,527,405 (155,000) 2,372,405 155,000
2015 Limited Tax Sewer Bond-5211-02 7/9/2014 2.50% 1,977,487 1,620,065 (100,000) 1,520,065 100,000
2016 Limited Tax Sewer Bond-5581-01 4/11/2016 2.50% 1,309,872 2,811,310 (135,000) 2,676,310 140,000
2019 Limited Tax Sewer Bond-5005-23(4) 4/10/2018 2.00% 9,395,000 7,856,804 241,023 8,097,827 400,000
2019 Limited Tax Sewer Bond-5672-01(') 6/7/2019 2.00% 56,280 4,514,105 (405,000) 4,109,105 410,000
2019 General Obligation Refunding-Limited Tax-Sewer 4/10/2019 3.00%-4.00% 7,681,301 6,139,700 (539,000) 5,600,700 553,700
2020 CIB&Refunding Bonds-Municipal Parking 8/13/2020 3.00%-5.00% 9,405,000 9,235,000 (545,000) 8,690,000 565,000
Total Business-type Activities 235,652,138 115,160,822 (11,664,931) 103,495,891 10,609,780
Total General Obligation Bonds $ 279,393,717 $ 143,119,002 $ (9,993,811) $ 133,125,191 $ 11,816,080
(1)These debt issues are split between governmental and business-type activities
(2)This debt issue was originally issued in 2019 but proceeds are drawn as the project progresses
(3)This debt is funded by general assessments and drain code tax
(4)Bonds are not fully drawn down-current draw$636,023
The purpose of each of the General Obligation bonds issued in the Governmental activities was for an energy
conservation project,economic development projects,facility improvements,various street improvements,and
drainage projects.
The purpose of each of the General Obligation(G.O.)bonds issued in the Business-type activities for the Building
Authority were for municipal parking system projects. The G.O. sewer bonds issued were for various sewer
capital improvement projects throughout the City.
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:
Amounts
Issuance Interest Original Balance Balance Due Within
Date Rates Amount July 1,2021 Deletions June 30,2022 One Year
Business-type Activities
2013 Sewer Revenue Refunding Bonds 12/27/2012 2.40% $ 21,765,000 $ 10,975,000 $ (1,550,000) $ 9,425,000 $ 1,550,000
The purpose of these noted bonds were for sewer capital improvement projects.
75
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS (continued)
Pledged Revenues
The City has pledged future sewer customer revenues,net of specified operating expenses,to repay$9,425,000
in sewer revenue and refunding bonds issued in 2013. Proceeds from the bonds provided financing for the
construction for various sewer infrastructure projects. The bonds are payable solely from sewer customer net
revenues and are payable through 2028. Annual principal and interest payments on the bonds are expected to
require less than 14% of net revenues. The total principal and interest paid for the current year and total
customer net revenues were$2,008,188 and$26,372,944,respectively.
Installment Purchase Agreements
The government has entered into installment purchase agreements for equipment and related capital assets.
Installment purchase agreements outstanding at year-end are as follows:
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1,2021 (Deletions) June 30,2022 One Year
Governmental Activities
2014 Lease Purchase Agreement-Recycling Trucks 9/12/2013 1.96% $ 1,550,855 $ 105,620 $ (105,620) $ - $
2015 Ballpark Improvements Installment Purchase 2/13/2015 3.00% 13,500,000 9,051,11S (9,051,115) - -
2021 Installment Purchase Agreement(LTGO) 8/18/2021 2.14% $ 10,569,000 - 10,300,000 10,300,000 639,000
2021 Installment Purchase Agreement(LTGO) 9/1/2021 1.81% 12,500,000 12,157,000 12,157,000 770,000
$ 38,119,855 $ 9,156,735 $ 13,300,265 $ 22,457,000 $ 1,409,000
Business-type Activities
2014 Contract Purchase Agreement-Recycling Carts 9/12/2013 1.96% $ 1,737,000 $ 118,343 $ (118,343) $ - $
The purpose of the lease purchase agreements were for vehicle acquisitions as noted and the installment
purchase agreements were for various facility improvements.
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:
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1,2021 (Deletions) June 30,2022 One Year
Governmental Activities
HUD Section 108 Loan 5/28/2015 1.52% $ S,900,000 $ S,51S,000 $ (390,000) $ 5,12S,000 $ 400,000
2020 IPA Fire Truck 10/28/2020 1.40% 1,390,000 1,293,775 (127,846) 1,165,929 129,642
2014 SIB Loan 3/27/2014 3.00% 1,828,428 851,686 (256,289) 595,397 263,978
$ 9,118,428 $ 7,660,461 $ (774,135) $ 6,886,326 $ 793,620
The purpose of the HUD loan was for applicable capital improvements within the City. The IPA was for the
acquisition of a new fire truck for public safety purposes. The purpose of the SIB loan was for various street
improvements.
76
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS(continued)
Current Year Defeasances of Debt
On August 18,2021,the City defeased the 2015 Ballpark Improvements Installment Purchase,which were due
and payable through 2030. This was accomplished by establishing irrevocable trust with an escrow agent
composed of U.S. Government Securities sufficient to meet the applicable principal and interest payments. The
City issued 2021 Installment Purchase Agreement in the amount of$10,569,000. Accordingly,the trust account
assets and liabilities for the defeased bonds are not included in the City's financial statements. As a result of the
advance refunding, the City decreased its total debt service requirements by $468,598, which resulted in an
economic gain (difference between the present value of the debt service payments on the old and new debt) of
$325,899.
Prior Year Defeased Debt
As of June 30, 2022, defeased bonds related to the prior year refunding of the 2009 Building Authority Capital
Appreciation Bonds were still outstanding in the amount of$1,009,386. The defeased bonds are scheduled to
be paid by the escrow agent in installments on June 1 of years 2023 through 2024.
As of June 30,2022,defeased bonds related to the prior year refunding of the 2018 Building Authority Refunding
Bonds were still outstanding in the amount of$4,205,000. The defeased bonds are scheduled to be paid by the
escrow agent in installments through 2027.
As of June 30, 2022, defeased bonds related to the prior year refunding of the 2014 TIFA and BA Refunding
Bonds were still outstanding in the amount of$10,965,000. The defeased bonds are scheduled to be paid by the
escrow agent in June 2024.
The following is a summary of changes in long-term debt (including current portion) of the City for the year
ended June 30,2022.
As restated Amounts
Balance Balance Due Within
July 1,2021 Additions Deletions June 30,2022 One Year
Governmental Activities
General obligation bonds $ 27,958,180 $ 4,490,000 $ (2,818,880) $ 29,629,300 $ 1,206,300
Notes from direct borrowings
and direct placements
Installment purchase agreements 9,156,735 23,069,000 (9,768,735) 22,457,000 1,409,000
Loans payable 7,660,461 - (774,135) 6,886,326 793,620
44,775,376 27,559,000 (13,361,750) 58,972,626 3,408,920
Deferred amounts for issuance premiums 663,565 - (77,343) 586,222 -
Compensated absences 11,032,557 1,076,643 (1,146,442) 10,962,758 1,146,442
Accrued workers compensation 2,789,472 1,758,032 (1,465,313) 3,082,191 647,114
$ 59,260,970 $ 30,393,675 $ (16,050,848) $ 73,603,797 $ 5,202,476
77
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS (continued)
As restated Amounts
Balance Balance Due Within
July 1,2021 Additions Deletions June 30,2022 One Year
Business-type Activities
General obligation bonds $ 115,160,822 $ 636,023 $ (12,300,954) $ 103,495,891 $ 10,609,780
Revenue bonds 10,975,000 - (1,550,000) 9,425,000 1,550,000
Notes from direct borrowings
and direct placements
Installment purchase agreements 118,343 - (118,343) - -
126,254,165 636,023 (13,969,297) 112,920,891 12,159,780
Deferred amounts
For issuance discounts (210,232) - 65,290 (144,942) -
For issuance premiums 2,352,719 - (209,618) 2,143,101 -
Compensated absences 820,157 131,635 (68,559) 883,233 68,559
$ 129,216,809 $ 767,658 $ (14,182,184) $ 115,802,283 $ 12,228,339
Component Units
Brownfield Redevelopment Authority
Revenue bonds $ 28,390,000 $ 11,330,000 $ $ 39,720,000 $ 625,000
Direct borrowings and direct placements
Loan payable 476,820 - 476,820 48,913
28,866,820 11,330,000 40,196,820 673,913
Less unamortized discount on general
obligation bonds (547,203) (214,385) 22,566 (739,022) -
28,319,617 11,115,615 22,566 39,457,798 673,913
Tax Increment Financing Authority
General obligation bonds 28,315,000 - (50,000) 28,265,000 50,000
Direct borrowings and direct placements
Contract payable 11,029,889 (1,020,309) 10,009,580 -
39,344,889 (1,070,309) 38,274,580 50,000
Add accreted interest on contract payable 8,255,052 (4,139,171) 4,115,881 2,069,137
Less unamortized discount on general
obligation bonds (60,384) 60,384 - -
47,539,557 (5,149,096) 42,390,461 2,119,137
Lansing Entertainment and Public Facilities Authority
Direct borrowings and direct placements
Lease payable 101,308 (40,224) 61,084 40,519
Total component units $ 75,960,482 $ 11,115,615 $ (5,166,754) $ 81,909,343 $ 2,833,569
Details applicable to the Component Units long-term obligations are readily available in their separate issued
financial statements and are not duplicated here in accordance with GASB 61.
78
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS(concluded)
For the governmental activities,compensated absences and other long-term debt are generally liquidated by the
General Fund.
Debt service requirements to maturity for the general obligation and revenue bonds of the City are as follows:
Year General Obligation Bonds Revenue Bonds
Ending Governmental Activities Business-Type Activities Business-Type Activities
June 30, Principal Interest Principal Interest Principal Interest
2023 $ 1,206,300 $ 788,326 $ 10,609,780 $ 3,630,665 $ 1,550,000 $ 380,688
2024 1,254,250 712,338 10,547,534 3,072,899 1,575,000 303,188
2025 1,304,750 674,612 9,525,938 2,113,795 1,575,000 224,438
2026 1,355,250 635,515 9,546,177 1,918,388 1,575,000 145,688
2027 1,410,750 594,875 8,878,621 1,687,072 1,575,000 98,438
2028-2032 6,260,050 2,261,668 30,506,184 5,568,026 1,575,000 49,218
2033-2037 4,647,950 1,520,224 17,062,520 2,331,632 - -
2038-2042 3,615,000 1,105,199 6,819,137 295,077
2043-2047 4,395,000 688,290 - -
2048-2051 4,180,000 181,731 - - -
$ 29,629,300 $ 9,162,778 $ 103,495,891 $ 20,617,554 $ 9,425,000 $ 1,201,658
Debt service requirements to maturity for the notes from direct borrowings and direct placements of the City
are as follows:
Year Direct Borrowings and Direct Placements
Ending Governmental Activities
June 30, Principal Interest
2023 $ 2,202,620 $ 262,514
2024 2,249,446 272,949
2025 2,077,747 242,299
2026 2,064,183 216,891
2027 2,110,082 192,381
2028-2032 11,042,248 669,791
2033-2034 7,597,000 119,330
$ 29,343,326 $ 1,976,155
79
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 10-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 CERA- Governmental
Fund Grants MSHDA Funds Total
Fund Balances
Nonspendable
Inventory $ - $ $ $ 1,348,300 $ 1,348,300
Prepaids 759,490 250 759,740
Corpus of permanent funds - 1,805,027 1,805,027
Restricted
Major and local streets-public works 17,335,275 17,335,275
Drug law and narcotics enforcement-public safety 729,503 729,503
Downtown Lansing-community development-public safety 401,619 401,619
Debt service 29,361 29,361
Building department 4,366,574 4,366,574
Community development 1 1
Capital projects-public works - 13,015,138 13,015,138
Committed
Pension/OPEB 785,099 - 785,099
City parks - 491,589 491,589
Capital improvements - 4,700,925 4,700,925
Unassigned 21,907,213 21,907,213
TOTAL FUND BALANCES $ 23,451,802 $ $ $ 44,223,562 $ 67,675,364
NOTE 11 - NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of June 30,2022,was as follows:
Govermmntal Business-type Component
Activities Activities Units
Capital assets
Capital assets not being depreciated $ 48,963,925 $ 33,527,775 $
Capital assets being depreciated,net 158,878,808 309,874,601 86,948
Total capital assets 207,842,733 343,402,376 86,948
Related debt
General obligation bonds 29,629,300 103,495,891
Direct borrowing and direct placements - 61,084
Revenue bonds 9,425,000
Installment purchase agreements(IPA) 22,457,000
Loans payable 6,886,326
Unamortized bond discounts (144,942)
Unamortized bond premiums 586,222 2,143,101
Deferred charge on bond refunding (228,881) (3,962,798)
Unspent IPA proceeds (10,929,450)
Total related debt 48,400,517 110,956,252 61,084
Net investment in capital assets $ 159,442,216 $ 232,446,124 $ 25,864
80
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 12-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.
NOTE 13 - RISK MANAGEMENT
The City of Lansing is exposed to various risks of loss that are covered by the City's policies, including losses
related to issues of cyber security, liability, errors and omissions, flood, boiler and machinery, property,
employee bonding, auto, crime, ERISA considerations, and employee injuries. The City carries commercial
insurance to cover these risks. Settled claims related to the commercial insurance have not exceeded the amount
of insurance coverage during the past three years.
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 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,
2022 2021
Estimated liability,beginning of year $ 1,635,000 $ 400,000
Estimated claims incurred,
including changes in estimates 11,139,554 12,302,617
Claim payments (11,274,554) (11,067,617)
Estimated liability,end of year $ 1,500,000 $ 1,635,000
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. When appliable,the current portion
of this liability is accounted for in the General Fund with long-term liabilities accounted for in the Statement of
Net Position. 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,
2022 2021
Estimated liability,beginning of year $ 2,789,472 $ 2,557,317
Estimated claims incurred,
including changes in estimates 1,758,032 1,224,781
Claim payments (1,465,313) (992,626)
Estimated liability,end of year $ 3,082,191 $ 2,789,472
81
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 14-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). The 2021 taxable value for
all properties within the City is$2,443,038,364.
The City is permitted by charter and state law to levy taxes up to $20.00 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 30,2022 was$19.44 per$1,000 of taxable value.
NOTE 15 -CONTINGENT LIABILITIES
The City and its component units participate in a number of Federal and State assisted programs that are subject
to compliance audits. The audit of the Federal programs and the periodic program compliance audits of many
of the State programs have not yet been conducted, completed, or resolved. Accordingly, the City's and its
component units' compliance with applicable grant requirements will be established at some future date. The
amount,if any,of expenditures which may be disallowed by the granting agencies cannot be determined at this
time although the City and its component units expect such amounts,if any,to be immaterial.
There are various other legal actions pending against the City and its component units. Due to the inconclusive
nature of many of the actions, it is not possible for the City's Counsel to determine the probable outcome or a
reasonable estimate of the potential liability, if any. These actions, for which a reasonable estimate can be
determined of the potential liability,if any,are considered by the City and/or component unit management and
legal counsel to not have a material effect on the financial condition of the City.
NOTE 16- PENSION PLANS
EMPLOYEES'RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Employees' Retirement System (the"Plan"),a single-employer,defined
benefit pension plan that covers general full-time employees of the City of Lansing,Michigan,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 defined
benefit pension plan. The Plan was established and may be amended by the City Council and is administered by
a nine member Board of Trustees. The Board is comprised of the Mayor of the City, one member of the City
Council appointed by the City Council,the City Treasurer,the City Human Resources Director,three members of
the retirement system to be elected by the members of the system under rules adopted by the board, two
residents of the State of Michigan appointed by the Mayor, by and with the consent of the City Council, one of
which is a retiree of the retirement system. It is accounted for as a separate pension trust fund. Separate
financial statements are not issued for the Plan.
82
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS(continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Plan Description (concluded).
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. 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
prior to retirement will receive their benefit as a life annuity beginning at age 58.
Summary of Significant Accounting Policies
The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period which the contributions are due. The City's contributions are
recognized when due and a formal commitment to provide the contribution has been made. Benefits and
refunds are recognized when due and payable in accordance with the terms of the Plan. Administration of the
Plan is funded through the Plan's investment earnings.
Method Used to Value Investments
Plan investments are reported 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. Investments for which market quotations are not readily available are valued at their
fair values as determined by the custodian under the direction of the Plan Board of Trustees,with the assistance
of a valuation service.
Plan Membership
At December 31,2021,plan membership consisted of the following:
Inactive employees or beneficiaries receiving benefits 935
Inactive employees entitled to but not yet receiving benefits 181
Vested and non-vested active participants 397
Total employees covered by the Plan 1,513
83
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Benefits Provided
Employees who retire with minimum age and years of service requirements are entitled to annual retirement
benefits, payable in monthly installments for life, in an amount equal to a percentage of their final average
compensation times years of credited service. Final average compensation is defined as the average of the
highest annual compensation paid over two consecutive years of credited service within the last 10 years of
credited service immediately preceding a member's termination of employment. The benefit payments for the
current plan are calculated using the following rates for the various groups of general employees:
Multiplier
Bargaining Unit/Employee Group Percentage
United Auto Workers (UAW)
Hired after January 9, 2017 1.50%
Hired after October 21, 2013 1.70%
All others 2.75%
Teamsters Local 214
Hired after September 2012 1.25%
All others 1.80%
Teamsters Local 580
Hired after May 19,2014 1.25%
All others 1.80%
Non-bargaining and all others
Hired after April 1,2014 1.25%
All others 1.60%
District court exempt
Hired after June 1, 2014 1.25%
All others 1.60%
84
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS(continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Contributions
The contribution requirements of Plan members are established and may be amended by the City Council in
accordance with City policies,union contracts,and Plan provisions. Employees are required to make contributions
to the Plan in rates from 3.00 to 6.50% depending on bargaining unit and hire date. The City is required to
contribute at actuarially determined rates expressed as a percentage of covered payroll. The City's contribution
rate for the current plan for the year ended June 30,2022 was 55.10%of projected valuation payroll.
Contribution
Bargaining Unit/Employee Group Percentage
United Auto Workers (UAW) 3.00%
Teamsters Local 214
Hired after September 2012 5.00%
All others 6.50%
Teamsters Local 580
Hired after May 9,2014 5.00%
All others 6.35%
District court Teamsters
Hired after April 2014 5.00%
All others 5.50%
District court exempt 5.50%
All others 6.50%
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
is shown on the following pages.
Rate of Return
For the year ended June 30, 2022,the annual money-weighted rate of return on pension plan investments,net
of pension plan investment expense, was (8.82)%. The money-weighted rate of return expresses investment
performance,net of investment expense,adjusted for the changing amounts actually invested.
Concentrations
At June 30, 2022,the Plan held certain investments (other than those issued or explicitly guaranteed by the U.S.
government,mutual funds,external investment pools,or other pooled investments) in certain organizations that
represent 5%or more of the Plan's fiduciary net position. Please see Note 4 for the details of these concentrations.
85
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Reserves
In accordance with the Plan policy,the City establishes reserves for various purposes. The reserves are adjusted
annually based on recommendations from the City's actuaries. The policy for creating and adjusting reserves
was established and can be amended by the Plan Board of Trustees. The market value change from December
31, 2021 to June 30, 2022 has been included in the Pension accumulation fund amount as it has not been
allocated to the other funds as of year-end. A summary of the Plan reserves at June 30,2022 is as follows:
Reserve/Group Balance
Employee savings fund $ 11,119,478
Retirement reserve fund 159,901,309
Pension accumulation fund (31,268,725)
Members benefit fund 14,233,291
Health insurance fund 34,702,753
Net Pension Liability
The components of the net pension liability for the employees' retirement system at June 30, 2022 were as
follows:
Total Pension Liability $ 312,157,774
Plan Fiduciary Net Position 153,666,353
Net Pension Liability $ 158,491,421
Plan fiduciary net position as percentage
of total Pension Liability 49.23%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31,2021,rolled forward to
June 30, 2022,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Salary increases: Inflation,plus service based increases.
Investment rate of return: 7.00%,net of investment expense,including inflation.
Mortality is based on the Pub2010S tables (below median), 50% for pre-retirement deaths. For Disabled
members, the disabled versions of these tables are used. Each of these tables is projected generationally
with Scale SSA(2020).
86
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS(continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Actuarial Assumptions (concluded)
The actuarial assumptions used in the December 31, 2021 valuation were based on the 2015-2019 experience
study.
Assumption changes-there were several changes in actuarial assumptions during fiscal year 2022,based on an
experience study completed in 2021, covering experience from 2015 through 2019. More details regarding
actuarial assumptions can be found in the December 31,2021 valuation reports for each system.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimates of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation
process,by which a (downward) risk adjustment is applied to the baseline expected return. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as
of December 31,2021,and the final investment return assumption,are summarized in the following table:
Expected Real Money-Weighted
Asset Class Target Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.95% 1.61%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity- Emerging 4.00% 6.95% 0.28%
Fixed Income-U.S. 25.00% 2.00% 0.50%
Real Estate 10.00% 4.95% 0.50%
Global Opportunistic Fixed Income 6.00% 4.25% 0.26%
Global Equity Long/Short 10.00% 5.00% 0.50%
Absolute Return 6.00% 5.00% 0.30%
100.00% 4.67%
Inflation 2.50%
Risk adjustment -0.17%
Investment rate of return 7.00%
87
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to
determine the discount rate assumed that plan member contributions will be made at the current contribution
rate and that City contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, each plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members. Therefore,the
long-term expected rates of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
The components of the change in the net pension liability are summarized as follows:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a)-(b)
Balances at June 30,2021 $ 316,621,592 $ 178,421,063 $ 138,200,529
Changes for the Year
Service cost 2,827,879 - 2,827,879
Interest on total pension liability 21,523,899 21,523,899
Difference between expected and actual experience (4,473,505) - (4,473,505)
Employer contributions - 13,494,287 (13,494,287)
Employee contributions - 1,289,306 (1,289,306)
Net investment income(loss) - (15,129,738) 15,129,738
Benefit payments,including employee refunds (24,342,091) (24,342,091) -
Administrative expense - (66,474) 66,474
Net changes (4,463,818) (24,754,710) 20,290,892
Balances as of June 30,2022 $ 312,157,774 $ 153,666,353 $ 158,491,421
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 7.00%, as well
as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower(6.00%) or 1-percentage-point higher(8.00%) than the current rate:
1%Decrease Current Rate 1%Increase
6.00% 7.00% 8.00%
Net pension liability $ 186,131,735 $ 158,491,421 $ 135,059,448
88
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (concluded)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022,the City recognized ERS pension expense of$17,550,196. At June 30, 2022,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ - $ 3,817,180
Changes in assumptions 2,555,430 -
Net difference between projected and actual earnings
on pension plan investments 11,704,992 -
Total $ 14,260,422 $ 3,817,180
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will
be recognized in pension expense as follows:
Year Ending Pension
June 30, Expense
2023 $ 3,576,073
2024 1,174,530
2025 263,388
2026 5,429,251
$ 10,443,242
At June 30, 2022,the City did not have any outstanding contributions to the pension plan required for the year
ended June 30, 2022.
89
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Police and Fire Retirement System (the "Plan"), a single-employer,
defined benefit pension plan that covers all police officers and fire fighters who are full-time employees of the
City. The Plan was established and may be amended by the City Council and is administered by an eight member
Board of Trustees. The Board is comprised of the Mayor of the City,one member of the City Council appointed
by the City Council,the City Treasurer,a resident of the City who shall be appointed by the Mayor,by and with
the consent of Council,two members each of the police and fire departments,to be elected by all the members
of their respective departments. It is accounted for as a separate pension trust fund. Separate financial
statements are not issued for the Plan.
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). 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.
Summary of Significant Accounting Policies
The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period which the contributions are due. The City's contributions are
recognized when due and a formal commitment to provide the contribution has been made. Benefits and
refunds are recognized when due and payable in accordance with the terms of the Plan. Administration of the
Plan is funded through the Plan's investment earnings.
Method Used to Value Investments
Plan investments are reported 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. Investments for which market quotations are not readily available are valued at their
fair values as determined by the custodian under the direction of the Plan Board of Trustees,with the assistance
of a valuation service.
90
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Plan Membership
At December 31,2021,plan membership consisted of the following:
Inactive employees or beneficiaries receiving benefits 766
Inactive employees entitled to but not yet receiving benefits 67
Vested and non-vested active participants 355
Total employees covered by the Plan 1,188
Benefits Provided
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. Pension benefit is
capped at 110% of base wage for IAFF and CCLP-NS and 115% for CCLP-Supervisors. Benefit multiplier is
changed to 2.5%and pension benefit is capped at 100%of base wage for hires on or after May 19,2014 for IAFF
and August 1,2014 for CCLP-NS.
Contributions
The contribution requirements of plan members are established and may be amended by the City Council in
accordance with City policies, union contracts, and Plan provisions. Fire members are required to contribute
10.0% of their annual wages to the plan, fire members hired after May 19, 2014 are required to contribute
7.00%. Police supervisors are required to contribute 9.52%,police non-supervisors are required to contribute
9.0%,and police non supervisors hired after August 1,2014 are required to contribute 7.00%. 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. The City's contribution rate for the plan for the year ended June 30,
2022 was 58.25%of projected valuation payroll.
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
is shown on the following pages.
Rate of Return
For the year ended June 30, 2022,the annual money-weighted rate of return on pension plan investments,net
of pension plan investment expense,was (9.86)%. The money-weighted rate of return expresses investment
performance,net of investment expense,adjusted for the changing amounts actually invested.
91
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Concentrations
At June 30,2022,the Plan held certain investments (other than those issued or explicitly guaranteed by the U.S.
government,mutual funds,external investment pools,or other pooled investments)in certain organizations that
represent 5% or more of the Plan's fiduciary net position. Please see Footnote 4 for the details of these
concentrations.
Reserves
In accordance with the Plan policy,the City establishes reserves for various purposes. The reserves are adjusted
annually based on recommendations from the City's actuaries. The policy for creating and adjusting reserves
was established and can be amended by the Plan Board of Trustees. A summary of the Plan reserves at June 30,
2022 is as follows:
Reserve/Group Balance
Retirement reserve fund $ 289,411,315
Health insurance fund 41,918,165
Net Pension Liability
The components of the net pension liability for the police and fire retirement system at June 30, 2022,were as
follows:
Total Pension Liability $ 502,879,789
Plan Fiduciary Net Position 289,411,315
Net Pension Liability $ 213,468,474
Plan fiduciary net position as percentage
of total Pension Liability 57.55%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2021,rolled forward to
June 30, 2022,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Salary increases: Inflation,plus service based increases.
Investment rate of return: 7.00%,net of investment expense,including inflation.
92
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Actuarial Assumptions (concluded)
Mortality is based on the Pub2010S(below median),50%for pre-retirement deaths. For Disabled members,
the disabled version of these tables is used. Each of these tables is projected generationally with Scale SSA
(2020).
The actuarial assumptions used in the December 31, 2021 valuation were based on the 2015-2019 experience
study.
Assumption changes-there were several changes in actuarial assumptions during fiscal year 2022,based on an
experience study completed in 2021, covering experience from 2015 through 2019. More details regarding
actuarial assumptions can be found in the December 31,2021 valuation reports for each system.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimates of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation
process,by which a (downward) risk adjustment is applied to the baseline expected return. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as
of December 31,2020,and the final investment return assumption,are summarized in the following table:
Long-Term
Expected Real Money-Weighted
Asset Class Target Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.95% 1.61%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 6.95% 0.28%
Fixed Income-U.S. 25.00% 2.00% 0.50%
Real Estate 10.00% 4.95% 0.50%
Global Opportunistic Fixed Income 6.00% 4.25% 0.26%
Global Equity Long/Short 10.00% 5.00% 0.50%
Absolute Return 6.00% 5.00% 0.30%
100.00% 4.67%
Inflation 2.50%
Risk adjustment -0.17%
Investment rate of return 7.00%
93
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to
determine the discount rate assumed that plan member contributions will be made at the current contribution
rate and that City contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, each plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members. Therefore,the
long-term expected rates of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
The components of the change in the net pension liability are summarized as follows:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a)-(b)
Balances at June 30,2021 $ 491,508,579 $ 335,439,636 $ 156,068,943
Changes for the Year
Service cost 7,269,988 - 7,269,988
Interest on total pension liability 33,647,916 - 33,647,916
Difference between expected and actual experience 6,641,422 - 6,641,422
Employer contributions - 19,609,552 (19,609,552)
Employee contributions - 2,722,350 (2,722,350)
Net investment income(loss) - (32,083,115) 32,083,115
Benefit payments,including employee refunds (36,188,116) (36,188,116) -
Administrative expense - (88,992) 88,992
Net changes 11,371,210 (46,028,321) 57,399,531
Balances as of June 30,2022 $ 502,879,789 $ 289,411,315 $ 213,468,474
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 7.00%,as well
as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower(6.00%) or 1-percentage-point higher(8.00%)than the current rate:
1%Decrease Current Rate 1%Increase
6.00% 7.00% 8.00%
Net pension liability $ 268,157,705 $ 213,468,474 $ 163,990,136
94
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (concluded)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized Police and Fire Retirement System pension expense of
$47,881,846. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 4,981,066 $ 1,737,858
Changes in assumptions 12,012,570 -
Net difference between projected and actual earnings
on pension plan investments 22,295,730 -
Total $ 39,289,366 $ 1,737,858
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will
be recognized in pension expense as follows:
Year Ending Pension
June 30, Expense
2023 $ 12,104,661
2024 11,831,132
2025 2,641,300
2026 10,974,415
$ 37,551,508
At June 30,2022,the City did not have any outstanding amount of contributions to the pension plan required for
the year ended June 30,2022.
For governmental activities,pension liabilities are expected to be liquidated by the general fund.
Detailed information about the pension plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of Note 17.
95
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16- PENSION PLANS (concluded)
SUMMARY PENSION INFORMATION
The table below summarizes the net pension liability and related deferrals for the Employees' Retirement
System and the Police and Fire Retirement System as presented in the Statement of Net Position.
Employees' Police and Fire
Retirement Retirement
System System Total
Net pension liability $ 158,491,421 $ 213,468,474 $ 371,959,895
Deferred outflows-pension 14,260,422 39,289,366 53,549,788
Deferred inflows-pension 3,817,180 1,737,858 5,555,038
Pension expense 17,550,196 47,881,846 65,432,042
EMPLOYEES'MONEY PURCHASE PENSION PLAN
Newly hired employees are eligible to participate in the City's defined contribution plan. Eligible employees
include those normally scheduled to work at least 1,000 hours during a plan year. To receive benefits under the
plan,the participant must have met the age and service requirements outline in his or her applicable bargaining
unit agreement. Distributions are calculated based on the employee's vesting percentage and the individual's
allocation of investment funds. In accordance with the Plan agreement,the City contributes 4% of employees'
base pay to the plan. The defined contribution plan is administered by the Board of Trustees as designed in the
City of Lansing Defined Contribution Plan which stipulates that the trustees have such authority. All
amendments to the plan,including funding requirements, must be approved by the City Council subject to the
terms of collective bargaining agreements. City contributions for the year ended June 30, 2022 were$361,330
for plan members. Employee contributions for the year ended June 30, 2022 were$357,008. All amendments
to the Plan, including funding requirements, must be approved by the City Council. The assets of the plan are
held in trust for the exclusive benefit of participants and their beneficiaries.
NOTE 17- 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 plan. 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 their respective pension plans,with the exception of Teamster
580 employees hired after May 2014. 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.
96
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
PRIMARY GOVERNMENT (concluded)
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 EMPLOYEES BENEFICIARY ASSOCIATION (VEBA)
The City of Lansing Voluntary Employees Beneficiary Association (the "Plan") is a single-employer defined
benefit postemployment 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. It is accounted for as a separate
OPEB trust fund.
EMPLOYEES'RETIREMENT SYSTEM
Plan Description
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,with the exception of Teamster
580 employees hired after May 2014. The Plan was established and may be amended by the City Council and is
administered by a nine member Board of Trustees. The Board is comprised of the Mayor of the City,one member
of the City Council appointed by the City Council,the City Treasurer,the City Human Resources Director,three
members of the retirement system to be elected by the members of the system under rules adopted by the board,
two residents of the State of Michigan appointed by the Mayor,by and with the consent of the City Council,one
of which is a retiree of the retirement system. It is accounted for as a separate OPEB trust fund.
Membership of the Plan consisted of the following at January 1, 2021, the date of the most recent actuarial
valuation:
Retirees and beneficiaries receiving benefits 961
Terminated plan members entitled to but not
yet receiving benefits 41
Active plan member 429
Total 1,431
97
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Benefits Provided
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$134.00 per month for each covered retiree and eligible dependent(s)
eligible for retiree healthcare. The payments are charged to the fringe benefit internal service fund of the City
and are recognized as expenses as payments are made.
Contributions
The contribution requirements of the Plan members and the City are established and may be amended by the
City Council, in accordance with City policies, union contracts, and Plan provisions. Retirees and their
beneficiaries are eligible for postemployment healthcare benefits if they qualify under the various contracts.
The required contribution is based on projected pay-as-you-go financing requirements, with an additional
amount to prefund benefits as determined through the bi-annual actuarial valuation. For the year ended June
30, 2022, the City contributed $10,343,555 (direct benefit payments of$9,599,555 and City contributions of
$744,000)to the Plan.
Rate of Return
For the year ended June 30, 2022,the annual money-weighted rate of return on investments,net of investment
expense, was (15.16)%. The money-weighted rate of return expresses investment performance, net of
investment expense,adjusted for the changing amounts actually invested.
Net OPEB Liability of the City
The components of the net OPEB liability of the City at June 30, 2022,were as follows:
Total OPEB Liability $ 157,216,430
Plan Fiduciary Net Position 69,887,591
Net OPEB Liability $ 87,328,839
Plan fiduciary net position as
percentage of total OPEB liability 44.45%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2021,rolled forward to June
30,2022,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
98
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS(continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Actuarial Assumptions (concluded)
Mortality rates are assumed to be in accordance with the Pub2010G tables,with below median and headcount
weighted,projected generationally using MP-2020.
The actuarial assumptions used in the January 1,2021 valuation were based on the 2015-2019 experience study.
Assumption changes-there were no changes of assumptions in 2022.
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
as of June 30,2022 is summarized in the table on the following page.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method
in which best-estimates of expected future real rates of return (expected returns,net of OPEB plan investment
expense and inflation) are developed for each asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation process,
by which a(downward) risk adjustment is applied to the baseline expected return. Best estimates of arithmetic
real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30,
2022 are summarized in the following table:
Long-Term Expected Money-Weighted
Asset Class Target Allocation Real Rate of Return Rate of Return
Domestic Equity 27.00% 5.95% 1.61%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 6.95% 0.28%
Fixed Income-U.S. 25.00% 2.00% 0.50%
Real Assets 10.00% 4.95% 0.50%
Global Opportunistic Fixed Income 6.00% 4.25% 0.26%
Global Equity Long/Short 10.00% 5.00% 0.50%
Absolute Return 6.00% 5.00% 0.30%
100.00% 4.67%
Inflation 2.50%
Risk adjustment -0.17%
Investment rate of return 7.00%
99
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 7.00%. The City's funding expectations/policy is
to contribute a percentage of payroll each year to their OPEB trust, in addition to paying the annual benefits
directly. The City has also assumed that benefits will begin being paid from trust assets once the funding ratio
exceeds 90%. Based on this information, the City projects that benefits will be available to make all projected
future benefit payments of current plan members.
The components of the change in the net OPEB liability are summarized as follows:
Calculating the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30,2021 $ 153,400,498 $ 79,529,913 $ 73,870,585
Changes for the year
Service cost 1,603,045 - 1,603,045
Interest on total OPEB liability 10,562,939 - 10,562,939
Employer contributions - 10,643,555 (10,643,555)
Net investment income - (11,324,122) 11,324,122
Benefit payments (8,350,052) (8,350,052) -
Administrative expense - (611,703) 611,703
Net changes 3,815,932 (9,642,322) 13,458,254
Balances as of June 30,2022 $ 157,216,430 $ 69,887,591 $ 87,328,839
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, calculated using the discount rate of 7.00%,as well as
what the City's net OPEB liability would be if it were calculated using a discount rate that is 1%lower(6.00%)
or 1%higher (8.00%)than the current rate:
1%Decrease Current 1% Increase
6.00% Discount Rate 8.00%
Net OPEB liability $ 106,212,238 $ 87,328,839 $ 71,724,223
100
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption
The following presents the net OPEB liability of the City,calculated using the healthcare cost trend rate of 4.5%
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that
are 1%lower(3.5%) or 1%higher(5.5%)than the current healthcare cost trend rates:
Healthcare
1% Decrease Ultimate Cost 1% Increase
3.50% Trend Rate 5.50%
Net OPEB liability $ 71,133,079 $ 87,328,839 $ 106,787,456
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022,the City recognized OPEB benefit of$19,016,642. At June 30, 2022,the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in assumptions $ - $ 22,238,814
Differences between expected and actual experience - 13,167,887
Net difference between projected and actual
earnings on plan investments 10,083,172 -
Total $ 10,083,172 $ 35,406,701
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ending OPEB
June 30, Expense
2023 $ (32,983,561)
2024 2,148,617
2025 2,133,171
2026 3,378,244
$ (25,323,529)
101
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (concluded)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of this note disclosure.
At June 30, 2022,the City reported no amount payable to the OPEB plan.
POLICE AND FIRE RETIREMENT SYSTEM
Plan Description
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 Plan was established
and may be amended by the City Council and is administered by an eight member Board of Trustees. The Board is
comprised of the Mayor of the City, one member of the City Council appointed by the City Council, the City
Treasurer, a resident of the City who shall be appointed by the Mayor, by and with the consent of Council, two
members each of the police and fire departments,to be elected by all the members of their respective departments.
Membership of the Plan consisted of the following at January 1, 2021, the date of the most recent actuarial
valuation:
Retirees and beneficiaries receiving benefits 699
Terminated plan members entitled to but not
yet receiving benefits 12
Active plan member 344
Total 1,055
Benefits Provided
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$121.90 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.
Contributions
The contribution requirements of the Plan members and the City are established and may be amended by the
City Council, in accordance with City policies, union contracts, and Plan provisions. Retirees and their
beneficiaries are eligible for postemployment healthcare benefits if they qualify under the various contracts.
The required contribution is based on projected pay-as-you-go financing requirements, with an additional
amount to prefund benefits as determined through the bi-annual actuarial valuation. For the year ended June
30, 2022, the City contributed $9,974,904 (direct benefit payments of $8,674,904 and City contributions of
$1,300,000)to the Plan.
102
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Rate of Return
For the year ended June 30, 2022,the annual money-weighted rate of return on investments,net of investment
expense, was (16.96)%. The money-weighted rate of return expresses investment performance, net of
investment expense,adjusted for the changing amounts actually invested.
The components of the net OPEB liability of the City at June 30, 2022,were as follows:
Total OPEB Liability $ 202,871,379
Plan Fiduciary Net Position 41,918,165
Net OPEB Liability $ 160,953,214
Plan fiduciary net position as
percentage of total OPEB liability 20.66%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2021, rolled forward to June
30, 2022,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables, with below median and
headcount weighted,projected generationally using MP-2020.
The actuarial assumptions used in the January 1,2021 valuation were based on the 2015-2019 experience study.
Assumption changes-there were no changes of assumptions in 2022.
103
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
as of June 30,2022 is summarized in the table below.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method
in which best-estimates of expected future real rates of return (expected returns,net of OPEB plan investment
expense and inflation) are developed for each asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation process,
by which a(downward)risk adjustment is applied to the baseline expected return. Best estimates of arithmetic
real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30,
2022 are summarized in the following table:
Long-Term Expected Money-Weighted
Asset Class Target Allocation Real Rate of Return Rate of Return
Domestic Equity 27.00% 5.95% 1.61%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 6.95% 0.28%
Fixed Income-U.S. 25.00% 2.00% 0.50%
Real Assets 10.00% 4.95% 0.50%
Global Opportunistic Fixed Income 6.00% 4.25% 0.26%
Global Equity Long/Short 10.00% 5.00% 0.50%
Absolute Return 6.00% 5.00% 0.30%
100.00% 4.67%
Inflation 2.50%
Risk adjustment -0.17%
Investment rate of return 7.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.00%. The City's funding expectations/policy is
to contribute a percentage of payroll each year to their OPEB trust, in addition to paying the annual benefits
directly. The City has assumed that benefits will be paid from trust assets once the funding ratio exceeds 90%,
and until the fund is depleted. Based on this information,the City projects that benefits will be available to make
all projected future benefit payments of current plan members.
104
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
The components of the change in the net OPEB liability are summarized as follows:
Calculating the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30,2021 $ 193,491,109 $ 48,217,543 $ 145,273,566
Changes for the year
Service cost 3,800,121 - 3,800,121
Interest on total OPEB liability 13,536,620 - 13,536,620
Employer contributions - 9,974,904 (9,974,904)
Net investment income - (7,645,295) 7,645,295
Benefit payments (7,956,471) (7,956,471) -
Administrative expense - (672,516) 672,516
Net changes 9,380,270 (6,299,378) 15,679,648
Balances as of June 30,2022 $ 202,871,379 $ 41,918,165 $ 160,953,214
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, calculated using the discount rate of 7.00%,as well as
what the City's net OPEB liability would be if it were calculated using a discount rate that is 1% lower(6.00%)
or 1%higher(8.00%)than the current rate:
1%Decrease Current 1%Increase
6.00% Discount Rate 8.00%
Net OPEB liability $ 187,647,083 $ 160,953,214 $ 139,304,997
105
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption
The following presents the net OPEB liability of the City,calculated using the healthcare cost trend rate of 4.5%
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that
are 1%lower(3.5%) or 1%higher(5.5)than the current healthcare cost trend rates:
Healthcare
1%Decrease Ultimate Cost 1%Increase
3.50% Trend Rate 5.50%
Net OPEB liability $ 138,335,276 $ 160,953,214 $ 188,715,116
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB benefit of$9,102,198. At June 30, 2022, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in assumptions $ 22,999,488 $ 81,199,887
Differences between expected and actual experience 4,646,140 35,606,996
Net difference between projected and actual
earnings on plan investments 8,994,304 -
Contributions subsequent to the measurement date - -
Total $ 36,639,932 $ 116,806,883
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ending OPEB
June 30, Expense
2023 $ (28,179,773)
2024 (56,322,761)
2025 2,131,480
2026 2,204,103
$ (80,166,951)
106
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (concluded)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of this note disclosure.
At June 30, 2022,the City reported no amount payable to the OPEB plan.
For governmental activities, other postemployment benefit liabilities are expected to be liquidated by the
general fund.
SUMMARY OPEB INFORMATION
The table below summarizes the net OPEB liability and related deferrals for the Employees' Retirement System
and the Police and Fire Retirement System as presented in the Statement of Net Position.
Employees' Police and Fire
Retirement Retirement
System System Total
Net OPEB liability $ 87,328,839 $ 160,953,214 $ 248,282,053
Deferred outflows-OPEB 10,083,172 36,639,932 46,723,104
Deferred inflows-OPEB 35,406,701 116,806,883 152,213,584
OPEB expense(benefit) (19,016,642) (9,102,198) (28,118,840)
Financial statements for individual pension and employee benefit plans:
Pension and Other Postemployment Benefits Trust Funds
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
Assets
Cash and cash equivalents $ 6,090,397 $ 1,390,936 $ 10,075,420 $ 1,459,318 $ - $ - $ 19,016,071
Investments
Mutual funds 110,091,809 25,142,971 208,310,511 30,171,571 4,549,579 33,939,595 412,206,036
Domestic equities 31,455,468 7,183,858 63,646,492 9,218,521 - - 111,504,339
International equities 718,781 164,156 1,396,842 202,318 - 2,482,097
Emerging market equities 6,775,984 1,547,512 12,812,804 1,855,799 975,174 23,967,273
Money market funds 3,449,22S 787,741 3,393,029 491,444 258,146 8,379,585
Prepaids 852 195 592 86 - 1,725
Dividends and interest receivable 26,685 6,094 50,988 7,385 11,923 103,075
Total assets 158,609,201 36,223,463 299,686,678 43,406,442 4,549,579 35,184,838 577,660,201
Liabilities
Accounts payable 150,924 34,470 266,801 38,643 - - 490,838
Due to other governmental units 4,791,924 1,167,240 10,008,562 1,449,634 4,653 319,000 17,741,013
Total liabilities 4,942,848 1,201,710 10,275,363 1,488,277 4,653 319,000 18,231,851
Net position restricted for:
Pension benefits 153,666,353 - 289,411,315 - 4,544,926 - 447,622,594
Other postemployment benefits 35,021,753 41,918,165 34,865,838 111,805,756
Total net position $ 153,666,353 $ 35,021,753 $ 289,411,315 $ 41,918,165 $ 4,544,926 $ 34,865,838 $ 559,428,350
107
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17- OTHER POSTEMPLOYMENT BENEFITS (concluded)
Changes in Pension and Other Postemployment Benefits Net Position
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
Additions
Investment income
Net appreciation(decrease)in fair
value of investments $ (14,356,406) $ (5,833,105) $ (32,083,115) $ (7,656,237) $ - $ (5,491,017) $ (65,419,880)
Interest income(loss) 5,527 - (699,336) (693,809)
Miscellaneous - 10,942 10,942
Investment expenses (778,859) (778,859)
Net investment income (15,129,738) (5,833,105) (32,083,115) (7,645,295) (699,336) (5,491,017) (66,881,606)
Contributions
Employer 13,494,287 10,343,555 19,609,552 9,974,904 361,330 300,000 54,083,628
Plan members 1,289,306 2,722,350 357,008 4,368,664
Total contributions 14,783,593 10,343,555 22,331,902 9,974,904 718,338 300,000 58,452,292
Deductions
Participant benefits 24,342,091 8,350,052 36,188,116 7,956,471 - - 76,836,730
Administrative expense 66,474 492,274 88,992 672,516 432,095 119,429 1,871,780
Total deductions 24,408,565 8,842,326 36,277,108 8,628,987 432,095 119,429 78,708,510
Change in net position (24,754,710) (4,331,876) (46,028,321) (6,299,378) (413,093) (5,310,446) (87,137,824)
Net position restricted for pension and
other postemployment benefits
Beginning ofyear 178,421,063 39,353,629 335,439,636 48,217,543 4,958,019 40,176,284 646,566,174
End of year $ 153,666,353 $ 35,021,753 $ 289,411,315 $ 41,918,165 $ 4,544,926 $ 34,865,838 $ 559,428,350
NOTE 18-TAX ABATEMENTS
Because Lansing is an older city, vacant land, or "green space" for new buildings is scarce, the City offers tax
abatements to make redevelopment and rehabilitation of existing buildings economically viable for developers,
who must consider the cost of rehabilitating existing, often older,buildings which may involve environmental
remediation,against the generally lesser cost of building on vacant land outside the City. These tax abatements
are designed to level the"playing field"for urban communities to encourage redevelopment of vacant buildings,
and to attract and retain private investment and jobs within the City. The City of Lansing provides tax
abatements under several different programs:
➢ Industrial property tax abatements are granted in the State of Michigan under Public Act 198 to promote
economic development, creation of jobs, and new or improved facilities. The Industrial Facilities Tax
(IFT) Exemption must be approved by both the City (after a public hearing is held) and the State of
Michigan. IFT exemptions can cover real and/or personal property. By State law,the exemption must
be applied for no later than six months after commencement of the project and must be accompanied by
a written agreement between the taxpayer and the local unit. An exemption allows for taxation on IFT
property at 50%of the local property tax millage rate for up to 12 years. A certificate may be revoked,
and taxes recaptured for noncompliance with the terms of the agreement. Property taxes abated by the
City under this program for fiscal year 2022 amounted to$116,162.
➢ The State of Michigan allows for Commercial Rehabilitation Exemption under Public Act 210 if making
substantial improvements to a business or multi-family residential facility. The City had no Commercial
Rehabilitation Exemptions for fiscal year 2022.
108
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 18-TAX ABATEMENTS(concluded)
➢ To incentivize new or expanded businesses,Public Act 328 allows for Personal Property Tax Exemptions
for qualified businesses located within eligible distressed communities. The exemption must be
approved by the City Council and the State Treasurer. Once approved, the taxpayer is exempt from
personal property tax on new investments after the date of the exemption. The City can recapture the
taxes if the business defaults on the terms of the written agreement. Property taxes abated by the City
under this program for fiscal year 2022 amounted to$3,695,861.
➢ The Brownfield Redevelopment Authority encourages environmental cleanup and economic
development through its Brownfield Redevelopment Plan under Public Act 318. A developer performs
redevelopment and cleanup activities at a site that is obsolete or blighted. The increased tax revenues
resulting from the increase in taxable value are captured by the City and used to repay the developer for
qualifying expenses. There is no provision for recovery of abated taxes because the developer is only
paid for eligible expenses on a reimbursement-basis. Property taxes abated by the Authority under this
program for fiscal year 2022, through direct reimbursement to developers from current tax captures,
amounted to$811,116. In addition,there are reserve liabilities reported in the financial statements that
represent tax captures set aside for future developer reimbursements. Property taxes abated by the
Authority under this program for fiscal year 2022 amounted to$222,211.
NOTE 19-ASSETS HELD BY FOUNDATION
During 2020 the City contributed $1,296,395 from the sale of Waverly Park to the City of Lansing Parks and
Recreation Endowment Fund,which is held by the Capital Region Community Foundation (CRCF) on behalf of
the City, from which only a certain component is spendable. During 2022 the City contributed $29,835. The
expenditure related to the contribution is recorded within a nonmajor capital project fund. The CRCF has explicit
variance power and therefore these amounts are not shown in the financial statements of the City. This variance
power allows CRCF to modify any restrictions or considerations on the distributions of the funds. Distributions
will be made to the City annually as requested, according to the spending guidelines. The City elected not to
receive any distributions this year. At June 30,2022,the fund has a value of$1,440,294
NOTE 20- CHANGE IN ACCOUNTING PRINCIPLES
For the year ended June 30,2022,the City implemented the following new pronouncement: GASB Statement No.
87,Leases.
Summary:
Governmental Accounting Standards Board(GASB)Statement No.87,Leases,was issued by the GASB in June 2017.
The objective of this Statement is to increase the usefulness of governments' financial statements by requiring
recognition of certain lease asset and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting based on the foundational principle that leases are financing of the
right to use the underlying asset. Under this Statement,a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset,and a lessor is required to recognize a lease receivable and a deferred inflow of
resources,thereby enhancing the relevance and consistency of information about governments'leasing activities.
There was no material impact on the City's financial statements after the adoption of GASB Statement No.87.
109
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 20-CHANGE IN ACCOUNTING PRINCIPLES (concluded)
While not material to the City as a whole,there was a material impact on the Lansing Entertainment& Public
Facilities Authority, component unit, after the adoption of GASB Statement 87 and that has been reflected in
their separately issued financial statements. In accordance with GASB 61, since this information is readily
available in their separately issued financial statements,it is not duplicated here.
NOTE 21 -UPCOMING ACCOUNTING PRONOUNCEMENTS
In May 2019,the GASB issued Statement No.91,Conduit Debt Obligations. This Statement will improve financial
reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities,
thereby ending significant diversity in practice. The clarified definition will resolve stakeholders'uncertainty as
to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities
associated with additional commitments extended by issuers and to recognize assets and deferred inflows of
resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity,
thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial
statement users with better information regarding the commitments issuers extend and the likelihood that they
will fulfill those commitments. That information will inform users of the potential impact of such commitments
on the financial resources of issuers and help users assess issuers'roles in conduit debt obligations. The City is
currently evaluating the impact this standard will have on the financial statements when adopted during the
2022-2023 fiscal year.
In May 2020,the GASB issued Statement No.96,Subscription-based Information Technology Arrangements. This
Statement provides guidance on the accounting and financial reporting for subscription-based information
technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a
SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a
corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription
payments,including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To
the extent relevant,the standards for SBITAs are based on the standards established in Statement No.87,Leases,
as amended. The City is currently evaluating the impact this standard will have on the financial statements when
adopted during the 2022-2023 fiscal year.
In June 2022,the GASB issued Statement No. 100,Accounting Changes and Error Corrections- an amendment of
GASB Statement No. 62. This Statement prescribes the accounting and financial reporting for (1) each type of
accounting change and (2) error corrections. This Statement requires that(a) changes in accounting principles
and error corrections be reported retroactively by restating prior periods,(b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period,and(c)changes in accounting
estimates be reported prospectively by recognizing the change in the current period. The City is currently
evaluating the impact this standard will have on the financial statements when adopted during the 2023-2024
fiscal year.
In June 2022,the GASB issued Statement No.101,Compensated Absences. This Statement requires that liabilities
for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used
but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has
not been used if(a)the leave is attributable to services already rendered, (b)the leave accumulates,and (c)the
leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means.
This Statement also establishes guidance for measuring a liability for leave that has not been used, generally
using an employee's pay rate as of the date of the financial statements. The City is currently evaluating the
impact this standard will have on the financial statements when adopted during the 2024-2025 fiscal year.
110
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 22-SUBSEQUENT EVENT
Subsequent to year end,the State of Michigan approved two draws for the City of Lansing from the State Clean
Water Revolving Fund Loan program. The draws were on July 14,2022,in the amount of$4,528,834 and August
11,2022,in the amount of$3,533,600.
111
REQUIRED SUPPLEMENTARY INFORMATION
112
CITY OF LANSING
GENERALFUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes $ 46,075,000 $ 46,075,000 $ 46,226,914 $ 151,914
Income taxes 29,380,800 37,241,000 37,087,593 (153,407)
Licenses and permits 1,715,600 1,720,100 1,932,281 212,181
Intergovernmental 20,168,000 20,718,000 22,818,693 2,100,693
Charges for services 8,941,350 9,086,850 10,925,736 1,838,886
Fines and forfeits 1,777,600 1,777,600 1,335,250 (442,350)
Interest and rents 210,000 210,000 268,225 58,225
Other
Donations and contributions 25,065,000 25,378,614 25,213,665 (164,949)
Miscellaneous 19,048,000 173,000 139,730 (33,270)
TOTAL REVENUES 152,381,350 142,380,164 145,948,087 3,567,923
EXPENDITURES
Current
General government
Attorney's office 2,450,461 3,964,001 2,311,544 1,652,457
City clerk 1,485,525 1,485,525 1,589,380 (103,855)
Council 664,446 664,446 630,820 33,626
Courts 6,614,859 6,614,859 6,320,992 293,867
Internal audit 194,724 194,724 178,413 16,311
Finance 6,384,489 6,384,489 5,928,898 455,591
Library rental (1,265,000) (1,265,000) 519,080 (1,784,080)
Human resources 2,572,681 2,572,681 2,195,657 377,024
Mayor 1,618,281 1,618,281 1,650,918 (32,637)
Office of community media 583,262 583,262 557,793 25,469
Contingency 300,000 - - -
Total general government 21,603,728 22,817,268 21,883,495 933,773
Public safety
Police 49,911,211 50,004,825 49,770,377 234,448
Fire 38,811,479 38,811,479 39,436,031 (624,552)
Total public safety 88,722,690 88,816,304 89,206,408 (390,104)
Public works 12,677,987 12,677,987 12,941,208 (263,221)
113
CITY OF LANSING
GENERALFUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (concluded)
YEAR ENDED JUNE 30,2022
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
EXPENDITURES(concluded)
Current(concluded)
Recreation and culture $ 9,017,392 $ 9,017,392 $ 9,134,233 $ (116,841)
Community and economic development
Economic development&planning 6,083,740 6,268,740 5,971,011 297,729
Neighborhood&community engagement 1,232,199 1,332,199 1,288,676 43,523
Human relations/community services 1,934,094 1,934,094 1,700,434 233,660
Human services/community support 2,252,500 2,002,500 1,672,224 330,276
Total community and
economic development 11,502,533 11,537,533 10,632,345 905,188
Debt service
Principal 1,860,400 1,860,400 2,018,747 (158,347)
Interest and fiscal charges 541,620 541,620 469,743 71,877
Total debt service 2,402,020 2,402,020 2,488,490 (86,470)
TOTAL EXPENDITURES 145,926,350 147,268,504 146,286,179 982,325
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 6,455,000 (4,888,340) (338,092) 4,550,248
OTHER FINANCING SOURCES(USES)
Proceeds from sale of capital assets 102,000 102,000 - (102,000)
Transfers in 100,000 100,000 100,000 -
Transfers out (5,957,000) (6,507,000) (6,082,859) 424,141
TOTAL OTHER FINANCING
SOURCES(USES) (5,755,000) (6,305,000) (5,982,859) 322,141
NET CHANGE IN FUND BALANCE 700,000 (11,193,340) (6,320,951) 4,872,389
Fund balance,beginning of year 29,772,753 29,772,753 29,772,753 -
Fund balance,end of year $ 30,472,753 $ 18,579,413 $ 23,451,802 $ 4,872,389
114
CITY OF LANSING
STATE AND FEDERAL GRANTS FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 962,800 $ 962,800 $ 13,381,019 $ 12,418,219
Charges for services - - 639,413 639,413
Interest and rents - - 27,262 27,262
Other revenues 50,000 50,000 (28,091) (78,091)
TOTAL REVENUES 1,012,800 1,012,800 14,019,603 13,006,803
EXPENDITURES
Current
Public safety - - 377,964 (377,964)
Public works - - 14,126 (14,126)
Community and economic development 1,012,800 1,012,800 13,863,374 (12,850,574)
TOTAL EXPENDITURES 1,012,800 1,012,800 14,255,464 (13,242,664)
EXCESS OF REVENUES
(UNDER)EXPENDITURES - - (235,861) (235,861)
OTHER FINANCING SOURCES
Transfers in - 235,859 235,859
NET CHANGE IN FUND BALANCE - - (2) (2)
Fund balance,beginning of year 2 2 2 -
Fund balance,end of year $ 2 $ 2 $ - $ (2)
115
CITY OF LANSING
CERA-MSHDA FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ $ $ 51,092,362 $ 51,092,362
EXPENDITURES
Current
General government 59,047 (59,047)
Community and economic development 50,898,386 (50,898,386)
Debt service
Interest 134,929 (134,929)
TOTAL EXPENDITURES 51,092,362 (51,092,362)
NET CHANGE IN FUND BALANCE -
Fund balance,beginning
Fund balance,ending $ $ $ $
116
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN -EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
LAST NINE FISCAL YEARS (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017 2016 201S 2014
CHANGE IN TOTAL PENSION LIABILITY
Service cost $ 2,827,879 $ 2,943,847 $ 2,738,099 $ 2,719,559 $ 2,538,487 $ 2,711,461 $ 2,977,084 $ 2,857,948 $ 2,982,624
Interest 21,523,899 21,890,652 21,360,398 21,512,099 21,994,837 22,403,009 22,268,516 22,671,909 22,722,630
Difference between expected and actual experience (4,473,505) (2,504,529) 7,219,344 (2,559,726) (6,451,827) (23,183,264) (4,937,823) (6,422,330) -
Changes of assumptions 7,666,292 - 3,099,448 3,706,512 7,575,775
Benefit payments,including employee refunds (24,342,091) (24,316,255) (24,106,903) (23,470,040) (23,102,224) (22,913,214) (22,860,449) (22,462,587) (22,790,522)
Net Change in Total Pension Liability (4,463,818) 5,680,007 7,210,938 (1,798,108) (1,921,279) (17,275,496) 5,023,103 (3,355,060) 2,914,732
Total Pension Liability,beginning 316,621,592 310,941,585 303,730,647 305,528,755 307,450,034 324,725,530 319,702,427 323,057,487 320,142,755
Total Pension Liability,ending $ 312,157,774 $ 316,621,592 $ 310,941,585 $ 303,730,647 $ 305,528,755 $ 307,450,034 $ 324,725,530 $ 319,702,427 $ 323,057,487
CHANGE IN PLAN FIDUCIARY NET POSITION
Contributions-employer $ 13,494,287 $ 12,649,529 $ 10,698,401 $ 10,880,932 $ 10,843,000 $ 10,246,872 $ 10,181,620 $ 10,547,556 $ 9,361,009
Contributions-employee 1,289,306 1,172,409 1,286,273 1,220,657 1,230,857 1,216,519 1,088,943 1,128,120 1,290,678
Net investment income(loss) (15,129,738) 36,047,284 (540,861) 8,437,568 9,679,565 17,412,568 (2,790,190) 4,399,543 17,887,635
Benefit payments,including employee refunds (24,342,091) (24,316,255) (24,106,903) (23,470,040) (23,102,224) (22,913,214) (22,860,449) (22,462,587) (22,957,379)
Administrative expenses (66,474) (20,367) (34,016) (42,364) (57,822) (47,217) (126,486) (174,818) (741,037)
Net Change in Plan Fiduciary Net Position (24,754,710) 25,532,600 (12,697,106) (2,973,247) (1,406,624) 5,915,528 (14,S06,562) (6,562,186) 4,840,906
Plan Fiduciary Net Position,beginning 178,421,063 152,888,463 165,585,569 168,558,816 169,965,440 164,049,912 178,556,474 185,118,660 180,277,754
Plan Fiduciary Net Position,ending $ 153,666,353 $ 178,421,063 $ 152,888,463 $ 165,585,569 $ 168,558,816 $ 169,965,440 $ 164,049,912 $ 178,556,474 $ 185,118,660
City's Net Pension Liability $ 158,491,421 $ 138,200,529 $ 158,053,122 $ 138,145,078 $ 136,969,939 $ 137,484,594 $ 160,675,618 $ 141,145,953 $ 137,938,827
Plan fiduciary net position as a percentage of the
total pension liability 49.23% 56.35% 49.17% 54.52% 55.17% 55.28% 50.52% 55.85% 57.30%
Covered payroll $ 24,509,599 $ 26,001,896 $ 24,304,971 $ 23,265,437 $ 22,672,891 $ 20,901,389 $ 23,085,894 $ 19,769,460 $ 21,521,242
City's net pension liability as a percentage
of covered payroll 646.7% 531.5% 650.3% 593.8% 604.1% 657.8% 696.0% 714.0% 640.9%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes -there were several changes in actuarial assumptions during fiscal year 2022, based on an experience study completed in 2021,
covering experience from 201S through 2019. More details regarding actuarial assumptions can be found in the December 31,2021 valuation reports
for each system.
117
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN -EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contributions $ 12,737,487 $ 12,349,529 $ 10,698,401 $ 10,880,932 $ 10,185,060 $ 10,246,872 $ 10,181,620 $ 10,547,556 $ 9,361,009 $ 8,586,536
Contributions in relation to the actuarially
determined contribution 12,737,487 12,349,529 10,698,401 10,880,932 10,843,000 10,246,872 10,181,620 10,547,556 9,361,009 8,586,536
Contribution deficiency(excess) $ - $ - $ - $ - $ (657,940) $ - $ - $ - $ - $ -
Covered payroll $ 24,509,899 $ 26,001,896 $ 24,304,971 $ 23,265,437 $ 22,672,891 $ 20,901,389 $ 23,085,894 $ 19,769,460 $ 21,521,242 $ 20,874,143
Contributions as a percentage of
covered payroll 51.97% 47.49% 44.02% 46.77% 47.82% 49.02% 44.10% 53.35% 43.50% 41.13%
The actuarially determined contribution was based on projected covered payroll. Employer contributions were made in full based on actual covered
payroll. Accordingly,the actuarially determined contribution has been expressed above as a percentage of actual payroll.
Actuarial valuation information relative to the determination of contributions:
Valuation date: December 31,2021
Notes: Actuarially determined contribution amounts are calculated as of January 1 every year.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percent of payroll over a closed period
Remaining amortization period 19 years
Asset valuation method 5 years smoothed market
Inflation 2.50%
Projected salary increases Increases in salary are assumed to increase with inflation annually,plus an additional
amount that varies based on the service of the member as shown below:
Years of Years of
Service UAW Service All Others
0-9 3.25% 0-5 7.50%
10-18 1.00% 6-15 1.00%
19+ 0.50% 16+ 0.00%
Investment rate of return 7.00%,net of investment expense and including inflation
Retirement age Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates Mortality is based on the Pub2010S tables(below median),50%for pre-retirement deaths.For disabled
members,the disabled versions of these tables are used.Each of these tables is projected generationally
with Scale SSA(2020).
118
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN-EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST NINE FISCAL YEARS (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017 2016 2015 2014
Annual money-weighted rate of return,
net of investment expense -8.82% 24.71% -0.34% 5.17% 5.87% 10.91% -1.60% 2.43% 13.67%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
119
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN -POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
LAST NINE FISCAL YEARS (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017 2016 2015 2014
CHANGE IN TOTAL PENSION LIABILITY
Service cost $ 7,269,988 $ 6,961,705 $ 6,526,273 $ 6,801,669 $ 6,533,877 $ 6,133,683 $ 6,371,845 $ 6,350,378 $ 6,614,784
Interest 33,647,916 32,984,834 32,689,419 31,573,535 30,641,722 30,519,676 30,197,513 29,159,382 27,896,927
Changes of benefit terms - - - - 779 - - - -
Difference between expected and actual experience 6,641,422 (2,944,445) (1,062,537) 10,590,030 8,263,623 (19,308,117) 7,884,167 3,159,996
Changes of assumptions - 24,025,142 - 1,647,044 25,078,592 3,281,341 -
Benefit payments,including employee refunds (36,188,116) (35,040,363) (33,987,421) (32,609,254) (31,757,151) (31,102,186) (29,503,964) (27,969,021) (26,270,724)
Net Change in Total Pension Liability 11,371,210 25,986,873 4,165,734 16,355,980 15,329,894 11,321,648 18,230,902 10,700,735 8,240,987
Total Pension Liability,beginning 491,508,579 465,521,706 461,355,972 444,999,992 429,670,098 418,348,450 400,117,548 389,416,813 381,175,826
Total Pension Liability,ending $ 502,879,789 $ 491,508,579 $ 465,521,706 $ 461,355,972 $ 444,999,992 $ 429,670,098 $ 418,348,450 $ 400,117,548 $ 389,416,813
CHANGE IN PLAN FIDUCIARY NET POSITION
Contributions-employer $ 19,609,552 $ 18,250,155 $ 15,457,647 $ 13,554,239 $ 12,686,000 $ 11,521,768 $ 10,884,312 $ 11,050,091 $ 11,248,857
Contributions-employee 2,722,350 3,207,122 3,459,452 3,485,891 2,650,019 2,840,914 2,608,214 2,950,832 2,911,896
Net investment income(loss) (32,083,115) 68,910,089 1,047,240 17,943,950 19,937,149 32,116,305 (6,040,910) 8,965,080 34,016,621
Benefit payments,including employee refunds (36,188,116) (35,040,363) (33,987,421) (32,609,254) (31,757,151) (31,102,186) (29,503,964) (27,969,021) (26,852,038)
Administrative expenses (88,992) (24,177) (41,599) (53,318) (77,237) (50,996) (128,903) (173,849) (1,141,506)
Net Change in Plan Fiduciary Net Position (46,028,321) 55,302,826 (14,064,681) 2,321,508 3,438,780 15,325,805 (22,181,251) (5,176,867) 20,183,830
Plan Fiduciary Net Position,beginning 335,439,636 280,136,810 294,201,491 291,879,983 288,441,203 273,115,398 295,296,649 300,473,516 280,289,686
Plan Fiduciary Net Position,ending $ 289,411,315 $ 335,439,636 $ 280,136,810 $ 294,201,491 $ 291,879,983 $ 288,441,203 $ 273,115,398 $ 295,296,649 $ 300,473,516
City's Net Pension Liability $ 213,468,474 $ 156,068,943 $ 185,384,896 $ 167,154,481 $ 153,120,009 $ 141,228,895 $ 145,233,052 $ 104,820,899 $ 88,943,297
Plan fiduciary net position as a percentage of the
total pension liability 57.55% 68.25% 60.18% 63.77% 65.59% 67.13% 65.28% 73.80% 77.16%
Covered payroll $ 31,354,796 $ 29,636,017 $ 28,977,408 $ 29,638,532 $ 28,435,952 $ 27,585,521 $ 27,078,405 $ 24,407,740 $ 25,611,974
City's net pension asset as a percentage
of covered payroll 680.8% 526.6% 639.8% 564.0% 538.5% 512.0% 536.3% 429.5% 347.3%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes -there were several changes in actuarial assumptions during fiscal year 2022, based on an experience study completed in 2021,
covering experience from 2015 through 2019. More details regarding actuarial assumptions can be found in the December 31, 2021 valuation reports
for each system.
120
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN -POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contributions $ 18,263,635 $ 16,950,155 $ 15,457,647 $ 13,554,239 $ 12,562,547 $ 11,521,768 $ 10,884,312 $ 11,050,091 $ 11,248,857 $ 10,133,599
Contributions in relation to the actuarially
determined contribution 18,263,635 16,950,155 15,457,647 13,554,239 12,686,000 11,521,768 10,884,312 11,050,091 11,248,857 10,133,599
Contribution deficiency(excess) $ - $ - $ - $ - $ (123,453) $ - $ - $ - $ - $ -
Covered payroll $ 31,354,796 $ 29,636,017 $ 28,977,408 $ 29,638,532 $ 28,435,952 $ 27,585,521 $ 27,078,405 $ 24,407,740 $ 26,405,725 $ 25,636,626
Contributions as a percentage of
covered payroll 58.25% 57.19% 53.34% 45.73% 44.61% 41.77% 40.20% 45.27% 42.60% 39.53%
The actuarially determined contribution was based on projected covered payroll. Employer contributions were made in full based on actual covered
payroll. Accordingly,the actuarially determined contribution has been expressed above as a percentage of actual payroll.
Actuarial valuation information relative to the determination of contributions:
Valuation date: December 31,2021
Notes: Actuarially determined contribution amounts are calculated as of January 1 every year.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percent of payroll over a closed period
Remaining amortization period 19 years
Asset valuation method 5 years smoothed market
Inflation 2.50%
Projected salary increases Increases in salary are assumed to be equal to inflation,plus 7.25%for those with less than 5 years of service or 1.00%for all others.
Investment rate of return 7.00%,net of investment expense and including inflation.
Retirement age Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates Mortality is based on the Pub2010S(below median),50%for pre-retirement deaths.For disabled members,the disabled versions
of these tables are assumed.Each of these tables is projected generationally with scale SSA(2020).
121
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST NINE FISCAL YEARS (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017 2016 2015 2014
Annual money-weighted rate of return,
net of investment expense -9.86% 25.50% 0.37% 6.30% 7.10% 12.06% -2.09% 3.04% 17.28%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
122
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST SIX MEASUREMENT DATES(ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017
CHANGE IN TOTAL OPEB LIABILITY
Service cost $ 1,603,045 $ 1,560,141 $ 1,518,385 $ 1,477,747 $ 1,438,197 $ 1,550,428
Interest 10,562,939 11,335,921 13,143,168 12,990,219 13,221,134 12,976,683
Difference between expected and actual experience - (39,503,661) (19,498,451) - (9,321,837) -
Changes of assumptions - (66,716,444) 39,986,554 3,614,432 (2,727,829)
Benefit payments,including refunds of member contributions (8,350,052) (9,395,594) (10,444,878) (10,573,488) (10,286,249) (10,116,593)
Net Change in Total OPEB Liability 3,815,932 (102,719,637) 24,704,778 7,508,910 (7,676,584) 4,410,518
Total OPEB Liability,beginning 153,400,498 256,120,135 231,415,357 223,906,447 231,583,031 227,172,513
Total OPEB Liability,ending $ 157,216,430 $ 153,400,498 $ 256,120,135 $ 231,415,357 $ 223,906,447 $ 231,583,031
CHANGE IN PLAN FIDUCIARY NET POSITION
Employer contributions $ 10,643,555 $ 10,424,468 $ 11,461,488 $ 11,848,485 $ 11,436,222 $ 11,305,756
OPEB plan net investment income (11,324,122) 11,001,355 4,366,514 3,040,683 4,329,577 5,209,669
Benefit payments,including refunds of member contributions (8,350,052) (9,395,594) (10,444,878) (10,573,488) (10,286,249) (10,116,593)
Administrative expenses (611,703) (728,874) (636,610) (548,939) (444,973) (389,163)
Net Change in Plan Fiduciary Net Position (9,642,322) 11,301,355 4,746,514 3,766,741 5,034,577 6,009,669
Plan Fiduciary Net Position,beginning 79,529,913 68,228,558 63,482,044 59,715,303 54,680,726 48,671,057
Plan Fiduciary Net Position,ending $ 69,887,591 $ 79,529,913 $ 68,228,558 $ 63,482,044 $ 59,715,303 $ 54,680,726
Plan's Net OPEB Liability $ 87,328,839 $ 73,870,585 $ 187,891,577 $ 167,933,313 $ 164,191,144 $ 176,902,305
Plan fiduciary net position as a percentage
of the total OPEB liability 44.45% 51.84% 26.64% 27.43% 26.67% 23.61%
Covered payroll $ 26,747,483 $ 24,292,037 $ 25,453,989 $ 23,720,424 $ 21,251,418 $ 20,901,289
Plan's net OPEB liability as a percentage of covered payroll 326.49% 304.09% 738.16% 707.97% 772.61% 846.37%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes-there were no changes of assumptions in 2022.
123
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN- EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contributions $ 7,100,834 $ 7,100,834 $ 10,504,140 $ 10,198,194 $ 10,910,284 $ 10,582,235 $ 11,447,334 $ 13,270,701 $ 14,057,619 $ 12,775,667
Contributions in relation to the
actuarially determined contribution 10,643,555 10,424,468 11,461,488 11,848,485 11,436,222 11,305,756 8,814,471 9,212,322 11,048,992 10,147,780
Contribution deficiency(excess) $ (3,542,721) $ (3,323,634) $ (957,348) $ (1,650,291) $ (525,938) $ (723,521) $ 2,632,863 $ 4,058,379 $ 3,008,627 $ 2,627,887
Covered payroll $ 26,747,483 $ 24,292,037 $ 25,435,989 $ 23,720,424 $ 21,251,418 $ 20,901,389 $ 23,085,894 $ 19,769,460 $ 21,521,242 $ 20,874,143
Contributions as a percentage
of covered payroll 39.8% 42.9% 45.1% 50.0% 53.8% 54.1% 38.2% 46.6% 51.3% 48.6%
Actuarial valuation information relative to the determination of contributions:
Valuation date: January 1,2021
[Votes: Actuarially determined contribution amounts are calculated as of January 1 every year.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll,closed
Remaining amortization period 20 years
Asset valuation method 5 years smoothed market
Inflation 2.50%
Investment rate of return 7.0%,net of OPEB plan investment expense and including inflation.
Retirement age Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates Pub2010G tables,below median and headcount weighted,projected generationally using MP-2020.
Health care trend rates
Pre-Medicare 7.50%for the first year,gradually decreasing by.25%to 4.50%in year 13 and thereafter.
Medicare 5.75%for the first year,gradually decreasing by.25%to 4.50%in year 6 and thereafter.
124
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST SIX MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return,
net of investment expense -15.16% 14.89% 6.63% 4.17% 7.10% 9.90%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
125
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST SIX MEASUREMENT DATES(ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017
CHANGE IN TOTAL OPEB LIABILITY
Service cost $ 3,800,121 $ 3,698,415 $ 3,599,431 $ 3,503,096 $ 3,409,339 $ 3,749,359
Interest 13,536,620 15,112,018 15,551,609 15,565,892 15,994,328 15,584,783
Difference between expected and actual experience - (71,213,994) 18,584,560 - (17,811,401) -
Changes of assumptions - (162,399,773) 91,997,958 18,652,834 (7,445,354)
Benefit payments,including refunds of member contributions (7,956,471) (10,836,077) (13,132,398) (12,271,014) (11,960,557) (11,065,440)
Net Change in Total OPEB Liability 9,380,270 (225,639,411) 116,601,160 25,450,808 (17,813,645) 8,268,702
Total OPEB Liability,beginning 193,491,109 419,130,520 302,529,360 277,078,552 294,892,197 286,623,495
Total OPEB Liability,ending $ 202,871,379 $ 193,491,109 $ 419,130,520 $ 302,529,360 $ 277,078,552 $ 294,892,197
CHANGE IN PLAN FIDUCIARY NET POSITION
Employer contributions $ 9,974,904 $ 12,951,908 $ 14,971,737 $ 13,500,687 $ 13,163,201 $ 12,290,749
OPEB plan net investment income (7,645,295) 3,408,741 2,998,056 290,543 3,572,965 3,487,200
Benefit payments,including refunds of member contributions (7,956,471) (10,836,077) (13,132,398) (12,271,014) (11,960,557) (11,065,440)
Administrative expenses (672,516) (815,831) (529,339) (627,673) (600,644) (525,309)
Net Change in Plan Fiduciary Net Position (6,299,378) 4,708,741 4,308,056 892,543 4,174,965 4,187,200
Plan Fiduciary Net Position,beginning 48,217,543 43,508,802 39,200,746 38,308,203 34,133,238 29,946,038
Plan Fiduciary Net Position,ending $ 41,918,165 $ 48,217,543 $ 43,508,802 $ 39,200,746 $ 38,308,203 $ 34,133,238
Plan's Net OPEB Liability $ 160,953,214 $ 145,273,566 $ 375,621,718 $ 263,328,614 $ 238,770,349 $ 260,758,959
Plan fiduciary net position as a percentage
of the total OPEB liability 20.66% 24.92% 10.38% 12.96% 13.83% 11.57%
Covered payroll $ 27,116,594 $ 29,636,017 $ 29,774,287 $ 28,435,953 $ 20,667,007 $ 27,585,521
Plan's net OPEB liability as a percentage of covered payroll 593.56% 490.19% 1261.56% 926.04% 1155.32% 945.27%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes-there were no changes of assumptions in 2022.
126
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN -POLICE AND FIRE RETIREMENT SERVICES
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contributions $ 13,178,502 $ 13,178,502 $ 15,674,604 $ 15,218,062 $ 15,968,029 $ 19,759,521 $ 17,276,901 $ 17,923,366 $ 16,945,536 $ 17,489,692
Contributions in relation to the actuarially
determined contribution 9,974,904 12,951,908 14,971,737 13,500,687 13,163,201 12,290,749 12,879,016 11,561,406 11,198,663 11,170,202
Contribution deficiency(excess) $ 3,203,598 $ 226,594 $ 702,867 $ 1,717,375 $ 2,804,828 $ 7,468,772 $ 4,397,885 $ 6,361,960 $ 5,746,873 $ 6,319,490
Covered payroll $ 27,116,594 $ 29,636,017 $ 29,774,287 $ 28,435,953 $ 20,667,007 $ 27,585,521 $ 27,078,405 $ 24,407,740 $ 26,405,725 $ 25,636,626
Contributions as a percentage of covered
payroll 36.8% 43.7% 50.3% 47.5% 63.7% 44.6% 47.6% 47.4% 42.4% 43.6%
Actuarial valuation information relative to the determination of contributions:
Valuation date: January 1,2021
Notes: Actuarially determined contribution amounts are calculated as of January 1 every year.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll,closed
Remaining amortization period 20 years
Asset valuation method 5 years smoothed market
Inflation 2.50%
Investment rate of return 7.0%,net of OPEB plan investment expense and including inflation.
Retirement age Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates Pub2010G tables,below median and headcount weighted,projected generationally using MP-2020.
Health care trend rates
Pre-Medicare 7.50%for the first year,gradually decreasing by.25%to 4.50%in year 13 and thereafter.
Medicare 5.75%for the first year,gradually decreasing by.25%to 4.50%in year 6 and thereafter.
127
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST SIX MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return,
net of investment expense -16.96% 7.43% 7.25% -0.88% 8.71% 9.89%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
128
CITY OF LANSING
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1-EXCESS OF EXPENDITURES OVER APPROPRIATIONS
State statutes provide that a local government unit not incur expenditures in excess of the amounts
appropriated. The City's budgeted expenditures for the General Fund have been shown at the activity level.
Within the General Fund,the legal level of budgetary control is the mandatory expenditure accounts (personal
services,supplies and operating expenses, capital outlay, debt service,transfers,and contingency) within each
department. Within other funds, the legal level of budgetary control is the mandatory expenditure accounts
(personal services, supplies and operating expenses, capital outlay, debt service, transfers, and contingency)
within that fund. Transfers between appropriations (mandatory accounts) required City Council approval. An
exception to City Council approval is allowed by City Charter for transfers between appropriations (mandatory
accounts) for amounts less than five thousand dollars, but not in excess of 15% of the appropriation in cases
where five thousand dollars exceeds 15%of the appropriation.
During the year ended June 30, 2022, the City incurred expenditures in the General Fund and certain Special
Revenue Funds as noted in excess of the amounts appropriated as follows:
Amounts Amounts
Appropriated Expended Variance
General Fund
Current
General government
City clerk $ 1,485,525 $ 1,589,380 $ (103,855)
Library rental (1,265,000) 519,080 (1,784,080)
Mayor 1,618,281 1,650,918 (32,637)
Public safety
Fire 38,811,479 39,436,031 (624,552)
Recreation and culture 9,017,392 9,134,233 (116,841)
Debt service 2,402,020 2,488,490 (86,470)
State and Federal Grants Fund
Current
Public safety - 377,964 (377,964)
Public works - 14,126 (14,126)
Community development 1,012,800 13,863,374 (12,850,574)
CERA-MSHDA
Current
General government - 59,047 (59,047)
Community and economic development - 50,898,386 (50,898,386)
Debt service - 134,929 (134,929)
Major Streets
Capital outlay 4,980,000 8,473,067 (3,493,067)
Tri-County Metro
Current
Public safety 552,000 644,879 (92,879)
129
OTHER SUPPLEMENTARY INFORMATION
130
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
131
CITY OF LANSING
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30,2022
Special Debt Capital
Revenue Service Projects Permanent
Funds Fund Funds Funds Total
ASSETS
Cash and cash equivalents $ 48,000 $ - $ 8,509,288 $ $ 8,557,288
Equity in pooled cash and investments 21,952,714 29,361 10,313,372 1,805,027 34,100,474
Receivables
Accounts,net 21,615 - 5,308,705 - 5,330,320
Loans 1,185,000 - 1,185,000
Accrued interest 2,350,196 - 2,350,196
Special assessments
Current - 420,578 420,578
Noncurrent - 10,294,161 10,294,161
Due from other governmental units 3,580,605 - 3,580,605
Inventories 1,348,300 1,348,300
Prepaids 250 250
TOTAL ASSETS $ 30,486,680 $ 29,361 $ 34,846,104 $ 1,805,027 $ 67,167,172
LIABILITIES
Accounts payable $ 1,384,395 $ - $ 1,630,880 $ - $ 3,015,275
Accrued liabilities 92,912 - 92,912
Indemnity bonds 43,867 43,867
Due to other funds 478,834 478,834
Due to other governmental units 310,476 310,476
Undistributed forfeitures 14,600 - 14,600
Unearned revenue 46,005 80,000 126,005
TOTAL LIABILITIES 2,371,089 1,710,880 4,081,969
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-loans and accrued interest receivable 3,442,480 5,125,000 8,567,480
Unavailable revenue-special assessments - 10,294,161 10,294,161
TOTAL DEFERRED INFLOWS OF RESOURCES 3,442,480 15,419,161 18,861,641
FUND BALANCES
Nonspendable 1,348,550 - 1,805,027 3,153,577
Restricted 22,832,972 29,361 13,015,138 - 35,877,471
Committed 491,589 - 4,700,925 - 5,192,514
TOTAL FUND BALANCES 24,673,111 29,361 17,716,063 1,805,027 44,223,562
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES,AND FUND BALANCES $ 30,486,680 $ 29,361 $ 34,846,104 $ 1,805,027 $ 67,167,172
132
CITY OF LANSING
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2022
Special Debt Capital
Revenue Service Projects Permanent
Funds Fund Funds Funds Total
REVENUES
Property taxes and special assessments $ 424,886 $ $ 1,358,807 $ $ 1,783,693
Intergovernmental 25,791,952 - 25,791,952
Charges for services 3,553,653 455,768 4,009,421
Fines and forfeits 241,033 - 241,033
Interest income(loss)and rents 38,139 (213,936) (175,797)
Other 435,458 - 435,458
TOTAL REVENUES 30,485,121 1,814,575 (213,936) 32,085,760
EXPENDITURES
Current
General government 3,530,734 3,530,734
Public safety 746,942 746,942
Highways and streets 11,450,485 11,450,485
Community and economic development 1,390,328 1,390,328
Debt service
Principal 1,387,289 1,112,880 2,500,169
Interest and fiscal charges 295,724 1,103,281 1,399,005
Capital outlay 10,941,270 7,455,647 18,396,917
TOTAL EXPENDITURES 29,742,772 9,671,808 39,414,580
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 742,349 (7,857,233) (213,936) (7,328,820)
OTHER FINANCING SOURCES(USES)
Proceeds from debt issuances - 27,559,000 27,559,000
Payment to refunding bond escrow agent (8,621,566) (8,621,566)
Proceeds from sale of capital assets - 400,000 400,000
Transfers in 6,435,000 3,412,000 28,000 9,875,000
Transfers out (4,000,000) (725,000) - (4,725,000)
TOTAL OTHER FINANCING
SOURCES(USES) 2,435,000 22,024,434 28,000 24,487,434
NET CHANGE IN FUND BALANCES 3,177,349 14,167,201 (185,936) 17,158,614
Fund balances,beginning of year 21,495,762 29,361 3,548,862 1,990,963 27,064,948
Fund balances,end of year $ 24,673,111 $ 29,361 $ 17,716,063 $ 1,805,027 $ 44,223,562
133
CITY OF LANSING
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 restricted 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 restricted for maintenance of local streets.
Drug Law Enforcement Federal Fund
This fund accounts for federal revenues, from the Departments of Justice and Treasury, set aside for drug law
enforcement under the provisions of Federal Grant Agreements.
Drug Law Enforcement State and Local Fund
This fund accounts for state and local revenues,from the Departments of Justice and Treasury,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.
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.
134
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
JUNE 30,2022
Drug Law
Drug Law Enforcement
Enforcement State and
Major Streets Local Streets Federal Local
ASSETS
Cash and cash equivalents $ - $ - $ - $ 23,000
Equity in pooled cash and investments 11,216,741 4,404,041 204,095 367,218
Receivables
Accounts,net - - - -
Loans -Accrued interest - - -
Due from other governmental units 2,395,272 559,937 -
Inventories 1,348,300 - -
Prepaids - - -
TOTAL ASSETS $ 14,960,313 $ 4,963,978 $ 204,095 $ 390,218
LIABILITIES
Accounts payable $ 935,603 $ 215,220 $ 7,235 $ 94,761
Accrued payroll and related - 4,084 - -
Indemnity bonds 43,867 - -
Due to other funds -
Due to other governmental units -
Undistributed forfeitures -
Unearned revenue 41,942 - - -
TOTAL LIABILITIES 1,021,412 219,304 7,235 94,761
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
FUND BALANCES
Nonspendable 1,348,300 - - -
Restricted 12,590,601 4,744,674 196,860 295,457
Committed - - - -
TOTAL FUND BALANCES 13,938,901 4,744,674 196,860 295,457
TOTAL LIABILITIES,DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES $ 14,960,313 $ 4,963,978 $ 204,095 $ 390,218
135
Community
Development
Block Grant Downtown Building Parks Tri-County
Program Lansing,Inc. Department Department Metro Total
$ - $ - $ - $ - $ 25,000 $ 48,000
440,207 4,413,125 491,589 415,698 21,952,714
- 21,615 - - 21,615
1,185,000 - - - 1,185,000
2,350,196 - - 2,350,196
483,695 - 141,701 3,580,605
- - - - 1,348,300
- 250 - - - 250
$ 4,018,891 $ 440,457 $ 4,434,740 $ 491,589 $ 582,399 $ 30,486,680
$ 72,935 $ 27,956 $ 13,118 $ - $ 17,567 $ 1,384,395
24,641 10,632 50,985 2,570 92,912
- - - - 43,867
478,834 - 478,834
- 310,476 310,476
- 14,600 14,600
- - 4,063 - 46,005
576,410 38,588 68,166 345,213 2,371,089
3,442,480 - - - 3,442,480
- 250 - - 1,348,550
1 401,619 4,366,574 - 237,186 22,832,972
- - - 491,589 - 491,589
1 401,869 4,366,574 491,589 237,186 24,673,111
$ 4,018,891 $ 440,457 $ 4,434,740 $ 491,589 $ 582,399 $ 30,486,680
136
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2022
Drug Law
Drug Law Enforcement
Enforcement State and
Major Streets Local Streets Federal Local
REVENUES
Property taxes and special assessments $ 19,444 $ - $ - $
Intergovernmental 19,982,090 3,636,970 -
Charges for services - 2,175 - -
Fines and forfeits - - - 159,650
Interest and rents 19,586 15,019 431 542
Other revenues 75,886 - - -
TOTAL REVENUES 20,097,006 3,654,164 431 160,192
EXPENDITURES
Current
General government - - - -
Public safety - - 93,882 8,181
Highways and streets 5,911,960 5,538,525 - -
Community development - - -
Debt service
Principal 701,830 685,459 -
Interest 95,527 200,197 -
Capital outlay 8,473,067 2,468,203 - -
TOTAL EXPENDITURES 15,182,384 8,892,384 93,882 8,181
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,914,622 (5,238,220) (93,451) 152,011
OTHER FINANCING SOURCES (USES)
Transfers in - 6,350,000 - -
Transfers out (4,000,000) - -
TOTAL OTHER FINANCING
SOURCES (USES) (4,000,000) 6,350,000 - -
NET CHANGE IN FUND BALANCES 914,622 1,111,780 (93,451) 152,011
Fund balances,beginning of year 13,024,279 3,632,894 290,311 143,446
Fund balances,end of year $ 13,938,901 $ 4,744,674 $ 196,860 $ 295,457
137
Community
Development
Block Grant Downtown Building Parks Tri-County
Program Lansing,Inc. Department Department Metro Total
$ - $ 405,442 $ $ $ - $ 424,886
1,268,648 302,250 601,994 25,791,952
- - 3,551,478 - 3,553,653
- - 81,383 241,033
- 725 1,049 787 38,139
121,680 237,892 - - 435,458
1,390,328 946,309 3,551,478 1,049 684,164 30,485,121
- 804,816 2,725,918 - - 3,530,734
- - 644,879 746,942
- - - 11,450,485
1,390,328 - - 1,390,328
- - - 1,387,289
- - 295,724
- - - 10,941,270
1,390,328 804,816 2,725,918 - 644,879 29,742,772
- 141,493 825,560 1,049 39,285 742,349
85,000 - - - 6,435,000
- - (4,000,000)
85,000 - - - 2,435,000
- 226,493 825,560 1,049 39,285 3,177,349
1 175,376 3,541,014 490,540 197,901 21,495,762
$ 1 $ 401,869 $ 4,366,574 $ 491,589 $ 237,186 $ 24,673,111
138
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Major Streets Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes and special assessments $ 150,000 $ 150,000 $ 19,444 $ (130,556)
Intergovernmental 11,827,258 11,827,258 19,982,090 8,154,832
Interest and rents - - 19,586 19,586
Other revenues 72,000 72,000 75,886 3,886
TOTAL REVENUES 12,049,258 12,049,258 20,097,006 8,047,748
EXPENDITURES
Current
Highways and streets 7,237,818 7,237,818 5,911,960 1,325,858
Debt service
Principal 702,289 702,289 701,830 459
Interest 95,568 95,568 95,527 41
Capital outlay 4,980,000 4,980,000 8,473,067 (3,493,067)
TOTAL EXPENDITURES 13,015,675 13,015,675 15,182,384 (2,166,709)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (966,417) (966,417) 4,914,622 5,881,039
OTHER FINANCING USES
Transfers out (4,000,000) (4,000,000) (4,000,000) -
NET CHANGE IN FUND BALANCE (4,966,417) (4,966,417) 914,622 5,881,039
Fund balance,beginning of year 13,024,279 13,024,279 13,024,279 -
Fund balance,end of year $ 8,057,862 $ 8,057,862 $ 13,938,901 $ 5,881,039
139
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Local Streets Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes and special assessments $ 150,000 $ 150,000 $ $ (150,000)
Intergovernmental 3,575,753 3,575,753 3,636,970 61,217
Miscellaneous revenue - - 2,175 2,175
Interest and rents - - 15,019 15,019
TOTAL REVENUES 3,725,753 3,725,753 3,654,164 (71,589)
EXPENDITURES
Current
Highways and streets 6,668,479 6,668,479 5,538,525 1,129,954
Debt service
Principal 685,459 685,459 685,459 -
Interest 200,197 200,197 200,197 -
Capital outlay 3,856,000 3,856,000 2,468,203 1,387,797
TOTAL EXPENDITURES 11,410,135 11,410,135 8,892,384 2,517,751
EXCESS OF REVENUES
UNDER EXPENDITURES (7,684,382) (7,684,382) (5,238,220) 2,446,162
OTHER FINANCING SOURCES(USES)
Transfers in 6,350,000 6,350,000 6,350,000 -
NET CHANGE IN FUND BALANCE (1,334,382) (1,334,382) 1,111,780 2,446,162
Fund balance,beginning of year 3,632,894 3,632,894 3,632,894 -
Fund balance,end of year $ 2,298,512 $ 2,298,512 $ 4,744,674 $ 2,446,162
140
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Drug Law Enforcement Federal Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Interest and rents $ 4,000 $ 4,000 $ 431 $ (3,569)
EXPENDITURES
Current
Public safety 204,000 204,000 93,882 110,118
NET CHANGE IN FUND BALANCE (200,000) (200,000) (93,451) 106,549
Fund balance,beginning of year 290,311 290,311 290,311 -
Fund balance,end of year $ 90,311 $ 90,311 $ 196,860 $ 106,549
141
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Drug Law Enforcement State and Local Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Fines and forfeitures $ - $ 100,000 $ 159,650 $ 59,650
Interest and rents 7,500 7,500 542 (6,958)
TOTAL REVENUES 7,500 107,500 160,192 52,692
EXPENDITURES
Current
Public safety - 10,000 8,181 1,819
NET CHANGE IN FUND BALANCE 7,500 97,500 152,011 54,511
Fund balance,beginning of year 143,446 143,446 143,446 -
Fund balance,end of year $ 150,946 $ 240,946 $ 295,457 $ 54,511
142
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
CDBG Program Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 2,124,580 $ 2,124,580 $ 1,268,648 $ (855,932)
Other revenues 115,000 115,000 121,680 6,680
TOTAL REVENUES 2,239,580 2,239,580 1,390,328 (849,252)
EXPENDITURES
Current
Community development 2,489,580 2,489,580 1,390,328 1,099,252
TOTAL EXPENDITURES 2,489,580 2,489,580 1,390,328 1,099,252
EXCESS OF REVENUES
UNDER EXPENDITURES (250,000) (250,000) - 250,000
OTHER FINANCING SOURCES
Transfers in 250,000 250,000 (250,000)
NET CHANGE IN FUND BALANCE - - -
Fund balance,beginning of year 1 1 1
Fund balance,end of year $ 1 $ 1 $ 1 $
143
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Downtown Lansing,Inc.Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes and special assessments $ 424,000 $ 424,000 $ 405,442 $ (18,558)
Intergovernmental 20,000 320,000 302,250 (17,750)
Interest and rents - - 725 725
Other revenues 42,300 222,000 237,892 15,892
TOTAL REVENUES 486,300 966,000 946,309 (19,691)
EXPENDITURES
Current
General government 571,300 831,003 804,816 26,187
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (85,000) 134,997 141,493 6,496
OTHER FINANCING SOURCES
Transfers in 85,000 85,000 85,000
NET CHANGE IN FUND BALANCE - 219,997 226,493 6,496
Fund balance,beginning of year 175,376 175,376 175,376 -
Fund balance,end of year $ 175,376 $ 395,373 $ 401,869 $ 6,496
144
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Building Department Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Charges for services $ 2,932,000 $ 2,932,000 $ 3,551,478 $ 619,478
EXPENDITURES
Current
General government 2,882,000 2,882,000 2,725,918 156,082
NET CHANGE IN FUND BALANCE 50,000 50,000 825,560 775,560
Fund balance,beginning of year 3,541,014 3,541,014 3,541,014 -
Fund balance,end of year $ 3,591,014 $ 3,591,014 $ 4,366,574 $ 775,560
145
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Parks Department Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Interest and rents $ $ $ 1,049 $ 1,049
NET CHANGE IN FUND BALANCE 1,049 1,049
Fund balance,beginning of year 490,540 490,540 490,540 -
Fund balance,end of year $ 490,540 $ 490,540 $ 491,589 $ 1,049
146
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2022
Tri County Metro Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ $ 425,000 $ 601,994 $ 176,994
Fines and forfeitures 120,000 81,383 (38,617)
Interest and rents 8,000 8,000 787 (7,213)
TOTAL REVENUES 8,000 553,000 684,164 131,164
EXPENDITURES
Current
Public safety - 552,000 644,879 (92,879)
NET CHANGE IN FUND BALANCE 8,000 1,000 39,285 38,285
Fund balance,beginning of year 197,901 197,901 197,901 -
Fund balance,end of year $ 205,901 $ 198,901 $ 237,186 $ 38,285
147
CITY OF LANSING
NONMAJOR DEBT SERVICE FUND
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 (which was refunding in 2007 in the amount of$1,780,000).
148
CITY OF LANSING
NONMAJOR DEBT SERVICE FUND
BALANCESHEET
JUNE 30,2022
1999 Fire
Station
ASSETS
Equity in pooled cash and investments $ 29,361
FUND BALANCES
Restricted $ 29,361
149
CITY OF LANSING
NONMAJOR DEBT SERVICE FUND
STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30,2022
1999 Fire
Station
EXPENDITURES
Current
Interest and fiscal charges $ -
EXCESS OF 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 29,361
Fund balances,end of year $ 29,361
150
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
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.
Montgomery Drain Fund
This fund is used to account for the financing of public improvements deemed to benefit the properties against
which special assessments are levied,specifically for the Montgomery Drain.
Other Capital Projects Fund
This fund accounts for accounts for miscellaneous capital projects.
151
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
JUNE 30,2022
Special Montgomery Other Capital
Assessments Drain Projects Total
ASSETS
Cash and cash equivalents $ - $ - $ 8,509,288 $ 8,509,288
Equity in pooled cash and investments 25,273 1,639,837 8,648,262 10,313,372
Receivables
Accounts and loan receivable - - 5,308,705 5,308,705
Special assessments
Current 21,179 399,399 - 420,578
Noncurrent 72,731 10,221,430 - 10,294,161
TOTAL ASSETS $ 119,183 $ 12,260,666 $ 22,466,255 $ 34,846,104
LIABILITIES
Accounts payable $ - $ - $ 1,630,880 $ 1,630,880
Unearned revenue 80,000 80,000
TOTAL LIABILITIES 1,710,880 1,710,880
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-loans and accrued interest receivable - - 5,125,000 5,125,000
Unavailable revenue-special assessments 72,731 10,221,430 - 10,294,161
TOTAL DEFERRED INFLOWS OF RESOURCES 72,731 10,221,430 5,125,000 15,419,161
FUND BALANCES
Restricted 46,452 2,039,236 10,929,450 13,015,138
Committed - 4,700,925 4,700,925
TOTAL FUND BALANCES 46,452 2,039,236 15,630,375 17,716,063
TOTAL LIABILITIES,DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES $ 119,183 $ 12,260,666 $ 22,466,255 $ 34,846,104
152
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30,2022
Special Montgomery Other Capital
Assessments Drain Projects Total
REVENUES
Property taxes and special assessments $ 46,452 $ 1,312,355 $ - $ 1,358,807
Charges for services - - 455,768 455,768
TOTAL REVENUES 46,452 1,312,355 455,768 1,814,575
EXPENDITURES
Debt service
Principal - 417,880 695,000 1,112,880
Interest and fiscal charges 348,601 754,680 1,103,281
Capital outlay - 7,455,647 7,455,647
TOTAL EXPENDITURES - 766,481 8,905,327 9,671,808
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 46,452 545,874 (8,449,559) (7,857,233)
OTHER FINANCING SOURCES(USES)
Proceeds from debt issuances - - 27,559,000 27,559,000
Proceeds from sale of capital assets 400,000 400,000
Payment to refunding bond escrow agent (8,621,566) (8,621,566)
Transfers in 3,412,000 3,412,000
Transfers out (725,000) (725,000)
TOTAL OTHER FINANCING
SOURCES(USES) - - 22,024,434 22,024,434
NET CHANGE IN FUND BALANCES 46,452 545,874 13,574,875 14,167,201
Fund balances,beginning of year - 1,493,362 2,055,500 3,548,862
Fund balances,end of year $ 46,452 $ 2,039,236 $ 15,630,375 $ 17,716,063
153
CITY OF LANSING
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.
154
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
COMBINING BALANCE SHEET
JUNE 30,2022
Cemetery
Perpetual Care Parks Trust Total
ASSETS
Equity in pooled cash and investments $ 1,803,719 $ 1,308 $ 1,805,027
FUND BALANCES
Nonspendable $ 1,803,719 $ 1,308 $ 1,805,027
155
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2022
Cemetery
Perpetual Care Parks Trust Total
REVENUES
Interest income (loss) and rents $ (213,938) $ 2 $ (213,936)
OTHER FINANCING SOURCES
Transfers in 28,000 - 28,000
NET CHANGE IN FUND BALANCES (185,938) 2 (185,936)
Fund balances,beginning of year 1,989,657 1,306 1,990,963
Fund balances,end of year $ 1,803,719 $ 1,308 $ 1,805,027
156
CITY OF LANSING
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.
157
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30,2022
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
ASSETS
Current assets
Cash and cash equivalents $ 200 $ - $ - $ - $ 200
Equity in pooled cash and investments 932,085 119,095 2,119,768 2,299,861 5,470,809
Accounts receivable,net - - - 47,474 47,474
Inventories 52,521 - - 52,521
Total current assets 984,806 119,095 2,119,768 2,347,335 5,571,004
Noncurrent assets
Capital assets not being depreciated 57,740 345,647 - - 403,387
Capital assets being depreciated,net 57,742 1,591,708 16,099 1,665,549
Total noncurrent assets 115,482 1,937,355 16,099 2,068,936
TOTAL ASSETS 1,100,288 2,056,450 2,119,768 2,363,434 7,639,940
DEFERRED OUTFLOW OF RESOURCES
Deferred outflows of resources related to pension 125,492 - 218,184 420,682 764,358
Deferred outflows of resources related to OPEB 88,732 154,273 297,454 540,459
TOTAL DEFERRED OUTFLOWS OF RESOURCES 214,224 372,457 718,136 1,304,817
LIABILITIES
Current liabilities
Accounts payable 22,732 69,207 165,396 257,335
Accrued payroll 2,338 3,605 3,605 9,548
Current portion of compensated absences 818 1,269 2,850 4,937
Total current liabilities 25,888 74,081 171,851 271,820
Noncurrent liabilities
Compensated absences,net of current portion 45,602 63,489 142,650 251,741
Net pension liability 1,394,725 2,424,919 4,675,497 8,495,141
Net other postemployment benefit liability 768,494 1,336,131 2,576,201 4,680,826
Total noncurrent liabilities 2,208,821 3,824,539 7,394,348 13,427,708
TOTAL LIABILITIES 2,234,709 3,898,620 7,566,199 13,699,528
DEFERRED INFLOW OF RESOURCES
Deferred inflows of resources related to pension 33,591 58,403 112,607 204,601
Deferred inflows of resources related to OPEB 311,579 541,723 1,044,498 1,897,800
TOTAL DEFERRED INFLOWS OF RESOURCES 345,170 600,126 1,157,105 2,102,401
NET POSITION(DEFICIT)
Net investment in capital assets 115,482 1,937,355 - 16,099 2,068,936
Unrestricted (1,380,849) 119,095 (2,006,521) (5,657,833) (8,926,108)
TOTAL NET POSITION(DEFICIT) $ (1,265,367) $ 2,056,450 $ (2,006,521) $ (5,641,734) $ (6,857,172)
158
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30,2022
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
OPERATING REVENUES
Charges for services $ 526,299 $ $ 3,246,590 $ 4,455,510 $ 8,228,399
OPERATING EXPENSES
Personnel services (222,766) 253,444 306,534 337,212
Purchase of goods and services 311,333 92,197 1,255,696 1,343,455 3,002,681
Depreciation 9,827 72,681 - 5,366 87,874
TOTAL OPERATING EXPENSES 98,394 164,878 1,509,140 1,655,355 3,427,767
OPERATING INCOME(LOSS) 427,905 (164,878) 1,737,450 2,800,155 4,800,632
NONOPERATING REVENUES(EXPENSES)
Interest revenue - - 5,996 5,996
Interest expense and fees (1,164) (1,164)
TOTAL NONOPERATING
REVENUES(EXPENSES) - - 4,832 4,832
NET INCOME(LOSS)BEFORE TRANSFERS 427,905 (164,878) 1,737,450 2,804,987 4,805,464
TRANSFERS
Transfers in 540,000 85,000 - - 625,000
Transfers out (28,000) - (28,000)
TOTAL TRANSFERS 512,000 85,000 - - 597,000
CHANGE IN NET POSITION 939,905 (79,878) 1,737,450 2,804,987 5,402,464
Net position(deficit),beginning of year (2,205,272) 2,136,328 (3,743,971) (8,446,721) (12,259,636)
Net position(deficit),end of year $ (1,265,367) $ 2,056,450 $ (2,006,521) $ (5,641,734) $ (6,857,172)
159
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2022
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 526,299 $ - $ 2,921,780 $ 4,472,241 $ 7,920,320
Cash payments for good and services (332,589) (92,252) (1,237,378) (1,136,939) (2,799,158)
Cash payments to employees (484,145) - (1,067,534) (2,195,594) (3,747,273)
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES (290,435) (92,252) 616,868 1,139,708 1,373,889
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 540,000 85,000 - - 625,000
Transfers out (28,000) (28,000)
NET CASH PROVIDED(USED)BY
NONCAPITAL FINANCING ACTIVITIES 512,000 85,000 597,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal paid on long-term obligations (118,343) (118,343)
Interest paid on long-term obligations (1,744) (1,744)
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (120,087) (120,087)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends received - - 5,996 5,996
NET CHANGE IN CASH AND
CASH EQUIVALENTS 221,565 (7,252) 616,868 1,025,617 1,856,798
Cash and cash equivalents,beginning ofyear 710,720 126,347 1,502,900 1,274,244 3,614,211
Cash and cash equivalents,end of year $ 932,285 $ 119,095 $ 2,119,768 $ 2,299,861 $ 5,471,009
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities
Operating income(loss) $ 427,905 $ (164,878) $ 1,737,450 $ 2,800,155 $ 4,800,632
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
Depreciation 9,827 72,681 5,366 87,874
Changes in:
Accounts receivable - 103 16,731 16,834
Inventory (7,442) (7,442)
Prepaids 136,484 136,484
Deferred outflows pension (46,560) (91,893) (168,852) (307,305)
Deferred outflows-OPEB 51,220 69,652 149,063 269,935
Accounts payable (13,814) (55) 18,318 70,032 74,481
Accrued payroll 363 - 3,605 3,605 7,573
Unearned revenue (324,913) (324,913)
Compensated absences 4,761 3,507 7,880 16,148
Net pension liability (56,380) 103,150 45,779 92,549
Deferred inflows-pension (106,154) (165,189) (333,246) (604,589)
Net other postemployment benefit liability (7,146) 95,105 101,536 189,495
Deferred inflows-OPEB (547,015) (832,027) (1,694,825) (3,073,867)
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES $ (290,435) $ (92,252) $ 616,868 $ 1,139,708 $ 1,373,889
160
CITY OF LANSING
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.
Information Technology Fund
This fund accounts for the operations of the City's information technology department.
161
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30,2022
Fleet Fringe Information
Maintenance Benefits Engineering Technology Total
ASSETS
Current assets
Equity in pooled cash and investments $ 5,577,661 $ 8,124,929 $ 2,125,318 $ 2,771,873 $ 18,599,781
Accounts receivable,net 8,084 860,814 - 80 868,978
Inventories 530,785 - - 530,785
Prepaids - 1,507,562 1,507,562
Total current assets 6,116,530 10,493,305 2,125,318 2,771,953 21,507,106
Noncurrent assets
Capital assets not being depreciated 92,892 - - - 92,892
Capital assets being depreciated,net 7,889,751 1,340,568 9,230,319
Total noncurrent assets 7,982,643 1,340,568 9,323,211
TOTAL ASSETS 14,099,173 10,493,305 3,465,886 2,771,953 30,830,317
LIABILITIES
Current liabilities
Accounts payable 204,234 1,120,310 6,644 141,666 1,472,854
Accrued payroll 91,695 137,417 89,105 61,804 380,021
Accrued interest payable 4,081 - - - 4,081
Claims incurred but not reported - 1,500,000 1,500,000
Current portion of:
Bonds and notes payable 129,642 - - - 129,642
Compensated absences 1,981 1,763 20,214 23,958
Total current liabilities 431,633 2,757,727 97,512 223,684 3,510,556
Noncurrent liabilities
Bonds and notes payable,net of current portion 1,036,287 - - - 1,036,287
Compensated absences,net of current portion 211,630 62,837 417,678 237,081 929,226
Total noncurrent liabilities 1,247,917 62,837 417,678 237,081 1,965,513
TOTAL LIABILITIES 1,679,550 2,820,564 515,190 460,765 5,476,069
NET POSITION
Net investment in capital assets 6,816,714 - 1,340,568 - 8,157,282
Unrestricted 5,602,909 7,672,741 1,610,128 2,311,188 17,196,966
TOTAL NET POSITION $ 12,419,623 $ 7,672,741 $ 2,950,696 $ 2,311,188 $ 25,354,248
162
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,
AND CHANGES IN FUND NET POSITION
YEAR ENDED JUNE 30,2022
Fleet Information
Maintenance Fringe Benefits Engineering Technology Total
OPERATING REVENUES
Charges for services $ 9,716,059 $ 73,321,381 $ 5,267,198 $ 7,602,508 $ 95,907,146
Miscellaneous 56,961 1,990 - 58,951
TOTAL OPERATING REVENUES 9,716,059 73,378,342 5,269,188 7,602,508 95,966,097
OPERATING EXPENSES
Personnel services 3,426,588 332,326 3,099,424 2,165,421 9,023,759
Purchase of goods and services 3,935,244 68,613,292 1,714,808 4,582,983 78,846,327
Depreciation 2,064,883 - 44,886 - 2,109,769
TOTAL OPERATING EXPENSES 9,426,715 68,945,618 4,859,118 6,748,404 89,979,855
OPERATING INCOME 289,344 4,432,724 410,070 854,104 5,986,242
NONOPERATING REVENUES(EXPENSES)
Gain on sale of capital assets 134,526 - - - 134,526
Interest expense and fees (18,257) (18,257)
TOTAL NONOPERATING
REVENUES(EXPENSES) 116,269 - - - 116,269
CHANGE IN NET POSITION 405,613 4,432,724 410,070 854,104 6,102,511
Net position,beginning of year 12,014,010 3,240,017 2,540,626 1,457,084 19,251,737
Net position,end of year $ 12,419,623 $ 7,672,741 $ 2,950,696 $ 2,311,188 $ 25,354,248
163
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2022
Fleet Information
Maintenance Fringe Benefits Engineering Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund services $ 9,761,160 $ 73,804,278 $ 5,269,188 $ 7,602,508 $ 96,437,134
Cash payments for goods and services (3,989,360) (68,000,622) (1,708,321) (4,551,742) (78,250,045)
Cash payments to employees (3,413,244) (1,275,006) (3,028,117) (2,148,921) (9,865,288)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 2,358,556 4,528,650 532,750 901,845 8,321,801
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 134,526 - - - 134,526
Purchase of capital assets (1,238,343) (1,238,343)
Principal paid on long-term obligations (233,466) (233,466)
Interest paid on long-term obligations (19,222) (19,222)
NET CASH(USED)CAPITAL AND BY RELATED
FINANCING ACTIVITIES (1,356,505) (1,356,505)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 1,002,051 4,528,650 532,750 901,845 6,965,296
Cash and cash equivalents,beginning of year 4,575,610 3,596,279 1,592,568 1,870,028 11,634,485
Cash and cash equivalents,end of year $ 5,577,661 $ 8,124,929 $ 2,125,318 $ 2,771,873 $ 18,599,781
Reconciliation of operating income to net cash
provided by operating activities
Operating income $ 289,344 $ 4,432,724 $ 410,070 $ 854,104 $ 5,986,242
Adjustments to reconcile operating income to
net cash provided by operating activities
Depreciation 2,064,883 - 44,886 - 2,109,769
Changein:
Accounts receivable 45,101 (510,057) - (80) (465,036)
Prepaids - 461,705 - 461,705
Inventories (71,853) - - - (71,853)
Accounts payable 17,737 150,965 6,487 31,321 206,510
Accrued payroll 14,108 124,918 26,948 8,844 174,818
Claims incurred but not reported - (135,000) - - (135,000)
Compensated absences (764) 3,395 44,359 7,656 54,646
NET CASH PROVIDED BY
OPERATING ACTIVITIES $ 2,358,556 $ 4,528,650 $ 532,750 $ 901,845 $ 8,321,801
164
CITY OF LANSING
FIDUCIARY FUNDS
Fiduciary Funds are funds set up to account for assets held by the City in a fiduciary capacity, for individuals,
organizations, other units of government or other funds. The City's fiduciary funds include pension and other
postemployment benefits trust funds and custodial funds.
PENSION AND OTHER POSTEMPLOYMENT BENEFITS TRUST FUNDS
Employees'Retirement System Pension
This fund accounts for all eligible employees (non-police and fire) activity including investing fund resources
and calculating and paying pension benefits to applicable retirees (or beneficiaries).
Employees'Retirement System OPEB
This fund accounts for all eligible employees (non-police and fire) activities related to postemployment
healthcare coverage for applicable individuals.
Police and Fire Retirement System Pension
This fund accounts for all eligible employees' activity including investing fund resources and calculating and
paying pension benefits to applicable retirees (or beneficiaries).
Police and Fire Retirement System OPEB
This fund accounts for all eligible employees' activities related to postemployment healthcare coverage for
applicable individuals.
Employees'Money Purchase Pension Plan
This fund accounts for all newly hired eligible employees who participate in the City's defined contribution plan
to account for paying pension benefits to eligible retirees (or beneficiaries).
Retiree Healthcare VEBA
This fund accounts for all eligible employee's activity related to the defined benefit of postemployment
healthcare to provide medical and healthcare benefits for retirees and their beneficiaries.
CUSTODIAL FUNDS
Custodial funds account for resources received and held by the City, in a custodial capacity, for individuals,
organizations and other governments.
54-A District Court Fund
This fund is used to hold cash received by the District Court for bail bonds, for garnishment payments until
claimed,and to hold indemnity bonds deposited relating to civil disputes until the Court rules on the case.
Current Tax Collection Fund
This fund is used to account for property taxes collected and distributed to other governments.
165
CITY OF LANSING
FIDUCIARY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30,2022
Pension and Other Postemployment Benefits Trust Funds
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
Assets
Cash and cash equivalents $ 6,090,397 $ 1,390,936 $ 10,075,420 $ 1,459,318 $ - $ - $ 19,016,071
Investments
Mutual funds 110,091,809 25,142,971 208,310,511 30,171,571 4,549,579 33,939,595 412,206,036
Domestic equities 31,455,468 7,183,858 63,646,492 9,218,521 - - 111,504,339
International equities 718,781 164,156 1,396,842 202,318 - 2,482,097
Emerging market equities 6,775,984 1,547,512 12,812,804 1,855,799 975,174 23,967,273
Money market funds 3,449,225 787,741 3,393,029 491,444 258,146 8,379,585
Prepaids 852 195 592 86 - 1,725
Dividends and interest receivable 26,685 6,094 50,988 7,385 11,923 103,075
Total assets 158,609,201 36,223,463 299,686,678 43,406,442 4,549,579 35,184,838 577,660,201
Liabilities
Accounts payable 150,924 34,470 266,801 38,643 - - 490,838
Due to other governmental units 4,791,924 1,167,240 10,008,562 1,449,634 4,653 319,000 17,741,013
Total liabilities 4,942,848 1,201,710 10,275,363 1,488,277 4,653 319,000 18,231,851
Net position restricted for:
Pension benefits 153,666,353 - 289,411,315 - 4,544,926 - 447,622,594
Other postemployment benefits - 35,021,753 - 41,918,165 - 34,865,838 111,805,756
Total net position $ 153,666,353 $ 35,021,753 $ 289,411,315 $ 41,918,165 $ 4,544,926 $ 34,865,838 $ 559,428,350
166
CITY OF LANSING
FIDUCIARY FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30,2022
Changes in Pension and Other Postemployment Benefits Net Position
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
Additions
Investment income
Net appreciation(decrease)in fair
value of investments $ (14,356,406) $ (5,833,105) $ (32,083,115) $ (7,656,237) $ - $ (5,491,017) $ (65,419,880)
Interest income(loss) 5,527 - (699,336) (693,809)
Miscellaneous - 10,942 10,942
Investment expenses (778,859) - (778,859)
Net investment income (15,129,738) (5,833,105) (32,083,115) (7,645,295) (699,336) (5,491,017) (66,881,606)
Contributions
Employer 13,494,287 10,343,555 19,609,552 9,974,904 361,330 300,000 54,083,628
Plan members 1,289,306 - 2,722,350 357,008 - 4,368,664
Total contributions 14,783,593 10,343,555 22,331,902 9,974,904 718,338 300,000 58,452,292
Deductions
Participant benefits 24,342,091 8,350,052 36,188,116 7,956,471 - - 76,836,730
Administrative expense 66,474 492,274 88,992 672,516 432,095 119,429 1,871,780
Total deductions 24,408,565 8,842,326 36,277,108 8,628,987 432,095 119,429 78,708,510
Change in net position (24,754,710) (4,331,876) (46,028,321) (6,299,378) (413,093) (5,310,446) (87,137,824)
Net position restricted for pension and
other postemployment benefits
Beginning of year 178,421,063 39,353,629 335,439,636 48,217,543 4,958,019 40,176,284 646,566,174
End of year $ 153,666,353 $ 35,021,753 $ 289,411,315 $ 41,918,165 $ 4,544,926 $ 34,865,838 $ 559,428,350
167
CITY OF LANSING
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30,2022
54-A District Current Tax
Court Collection Total
ASSETS
Equity in pooled cash and investments $ 19,834 $ - $ 19,834
LIABILITIES
Due to individuals and agencies 19,834 - 19,834
NET POSITION
Restricted for individuals and agencies $ - $ - $ -
168
CITY OF LANSING
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30,2022
54-A District Current Tax
Court Collections Total
ADDITIONS TO NET POSITION
Collections from or on behalf of individuals $ 383,590 $ - $ 383,590
Collections of taxes for other governments - 126,026,215 126,026,215
TOTAL ADDITIONS 383,590 126,026,215 126,409,805
DEDUCTIONS FROM NET POSITION
Payments to or on behalf of individuals 383,590 - 383,590
Payment of taxes collected for other governments - 126,026,215 126,026,215
TOTAL DEDUCTIONS 383,590 126,026,215 126,409,805
NET CHANGE IN NET POSITION - - -
Net position,beginning of year -
Net position,end of year $ $ - $
169
STATISTICAL SECTION
170
STATISTICAL SECTION
This part of the City of Lansing, Michigan's (the "City") annual comprehensive 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.
Paae
Financial Trends These schedules contain trend information to help the reader
(Tables 1-4) understand how the City's financial performance and well-being
have changed over time. 172
Revenue Capacity These schedules contain information to help the reader assess the
(Tables 5-8) factors affecting the City's ability to generate its property taxes. 177
Debt Capacity These schedules present information to help the reader assess
(Tables 9-13) the affordability of the City's current levels of outstanding debt
and the City's ability to issue additional debt in the future. 181
Demographic and These schedules offer demographic and economic indicators to
Economic Information help the reader understand the environment within which the
(Tables 14-15) City's financial activities take place and to help make
comparisons over time and with other governments. 186
Operating Information These schedules contain information about the City's operations
(Tables 16-18) 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. 188
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
171
CITY OF LANSING Table 1
NET POSITION BY COMPONENT
2013-2022
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $ 154,372,604 $ 150,976,010 $ 151,785,916 $ 149,676,860 $ 149,533,948 $ 148,263,240 $ 146,153,309 $ 143,583,186 $ 153,733,211 $ 159,442,216
Restricted 12,552,011 13,133,137 12,311,541 12,922,525 10,993,950 15,189,723 23,505,738 20,495,617 24,518,910 28,101,348
Unrestricted (39,467,672) (46,344,555) (251,453,207) (265,678,371) (276,790,945) (606,529,375) (629,587,773) (674,087,826) (603,922,567) (578,995,034)
Total governmental activities net position $ 127,456,943 $ 117,764,592 $ (87,355,750) $ (103,078,986) $ (116,263,047) $ (443,076,412) $ (459,928,726) $ (510,009,023) $ (425,670,446) $ (391,451,470)
Business-type activities
Net investment in capital assets $ 212,682,278 $ 214,458,841 $ 218,813,478 $ 220,436,882 $ 224,161,744 $ 227,127,434 $ 233,988,263 $ 234,126,397 $ 219,824,056 $ 232,446,124
Restricted 11,077,134 8,746,096 2,889,096 2,764,963 1,818,671 1,886,620 1,953,175 2,432,963 2,437,390 2,441,780
Unrestricted 31,943,581 37,891,053 17,242,167 19,401,320 25,415,447 (13,854,833) (7,299,147) (13,397,777) 19,032,067 21,195,582
Total business-type activities net position $ 255,702,993 $ 261,095,990 $ 238,944,741 $ 242,603,165 $ 251,395,862 $ 215,159,221 $ 228,642,291 $ 223,161,583 $ 241,293,513 $ 256,083,486
Primary government
Net investment in capital assets $ 367,054,882 $ 365,434,851 $ 370,599,394 $ 370,113,742 $ 373,695,692 $ 375,390,674 $ 380,141,572 $ 377,709,583 $ 373,557,267 $ 391,888,340
Restricted 23,629,145 21,879,233 15,200,637 15,687,488 12,812,621 17,076,343 25,458,913 22,928,580 26,956,300 30,543,128
Unrestricted (7,524,091) (8,453,502) (234,211,040) (246,277,051) (251,375,498) (620,384,208) (636,886,920) (687,485,603) (584,890,500) (557,799,452)
Total primary government net position $ 383,159,936 $ 378,860,582 $ 151,588,991 $ 139,524,179 $ 135,132,815 $ (227,917,191) $ (231,286,43S $ (286,847,440) $ (184,376,933) $ (135,367,984)
Note: No discretely presented component units shown
- GASB Statement No.68 was implemented for the fiscal year ended June 30,2015. This resulted in presentation of the City's net pension liability on
the statement of net position. Prior years were not restated.
- GASB Statement No.75 was implemented for the fiscal year ended June 30,2018. This resulted in presentation of the City's net OPEB liability on
the statement of net position. Prior years were not restated.
172
CITY OF LANSING Table 2
CHANGES IN NET POSITION
2013-2022
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities
General government $ 27,438,065 $ 24,771,054 $ 25,225,893 $ 27,993,414 $ 21,778,154 $ 16,995,976 $ 26,679,840 $30,400,643 $ 11,196,979 $ 19,628,516
Public safety 77,133,469 78,142,897 81,827,437 85,739,408 91,829,441 87,352,251 97,391,612 121,102,641 57,170,988 78,113,026
Public works 29,984,955 37,243,516 27,81S,970 28,212,049 28,983,891 26,485,877 29,644,398 35,288,2S4 32,334,504 27,316,002
Recreation and culture 7,713,098 8,670,918 6,515,590 10,336,168 9,441,519 8,302,243 7,650,889 11,238,934 4,125,852 6,707,099
Community and economic development 16,939,572 7,602,229 10,270,404 10,642,102 12,349,663 16,150,417 21,046,090 20,731,730 34,764,843 75,618,986
Interest on long-term debt 1,475,051 1,340,818 1,291,846 1,424,215 1,201,846 1,137,561 1,182,488 733,925 1,072,610 1,84S,964
Total governmental activities expenses 160,684,210 1S7,771,432 152,947,140 164,347,3S6 16S,584,514 156,424,32E 183,S95,317 219,496,127 140,665,776 209,229,593
Business-type activities
Sewage disposal system 26,298,964 28,682,809 27,S06,843 28,487,9S7 27,567,228 28,552,143 31,939,976 32,605,664 20,828,495 22,239,978
Municipal parking system 8,108,373 7,851,702 7,60S,461 7,651,077 6,866,747 9,888,246 7,081,998 12,716,606 3,183,095 10,110,065
Cemetery 633,050 722,270 632,485 708,545 886,579 1,379,877 470,220 1,652,2S5 300,009 98,394
Golf 892,117 935,671 852,634 845,575 802,564 (372,775) 278,501 229,467 198,889 164,878
Garbage and rubbish collection 1,557,708 1,722,843 1,712,671 2,085,728 1,543,380 3,101,893 1,035,262 2,431,066 1,753,713 1,509,140
Recycling 3,650,292 3,263,553 3,623,276 4,092,278 3,667,899 3,859,496 3,856,764 5,576,963 2,613,739 1,656,519
Total business-type activities expenses 41,140,504 43,178,848 41,933,370 43,871,160 41,334,397 46,408,880 44,662,721 55,212,021 28,877,940 35,778,974
Total primary government expenses $ 201,824,714 $ 200,950,280 $ 194,880,510 $ 208,218,516 $ 206,918,911 $ 202,833,205 $ 228,258,038 $ 274,708,148 $ 169,543,716 $ 245,008,567
Program Revenues
Governmental activities
Charges for services
General government $ 6,162,713 $ 6,820,261 $ 6,815,975 $ 7,279,427 $ 7,295,556 $ 7,038,702 $ 7,567,720 $7,616,658 $ 10,158,500 $ 9,406,822
Public safety 4,083,222 2,122,023 3,344,183 2,909,0S4 3,476,966 4,140,682 3,935,250 4,770,026 3,553,105 4,423,872
Public works 1,622,738 2,129,126 1,923,303 3,011,894 1,836,466 716,322 2,978,549 536,961 560,343 1,165,080
Recreation and culture 594,349 800,293 619,834 673,840 617,604 831,816 1,092,232 1,038,740 1,188,287 1,192,891
Community and economic development 67,349 67,323 67,264 67,272 67,312 - - - - -
Operating grants and contributions 29,322,435 28,234,803 24,658,955 24,561,960 25,157,629 28,983,936 29,663,253 28,534,469 61,065,241 90,177,926
Capital grants and contributions 3,124,286 3,365,682 2,910,660 904,298 63,488 855,760 3,313,872 285,075 15,693,491 5,283,332
Total governmental activities program revenues 44,977,094 43,539,511 40,340,174 39,407,745 38,515,021 42,567,218 48,550,876 42,781,929 92,218,967 111,649,923
Business-type activities
Charges for services
Sewage disposal system 30,825,174 31,759,698 31,730,416 32,368,491 34,755,896 35,107,S70 35,752,812 34,968,585 38,471,972 35,943,034
Municipal parking system 5,267,627 7,453,476 6,988,879 7,090,335 6,906,091 7,436,552 8,422,161 6,211,685 2,710,377 5,101,852
Cemetery 314,913 289,565 335,379 312,929 403,663 351,204 415,757 403,030 558,744 526,299
Golf 373,000 366,567 363,559 313,164 256,218 179,464 - 3,091 - -
Garbage and rubbish collection 1,131,659 1,664,201 1,744,999 1,871,665 1,952,897 2,072,454 2,243,627 2,278,024 2,796,524 3,246,590
Recycling 3,434,622 3,508,536 3,624,671 3,627,070 3,614,794 3,779,468 4,081,700 4,376,310 4,504,054 4,455,510
Operating grants and contributions 1,193,571 2,574,949 1,143,085 1,312,362 1,391,326 1,603,942 6,648,917 2,000,000 - -
Capital grants and contributions 100,000
Total business-type activities program revenues 42,540,566 47,616,992 45,930,988 46,896,016 49,380,885 50,530,654 57,564,974 50,240,725 49,041,671 49,273,285
Total primary government program revenues $ 87,517,660 $ 91,156,503 $ 86,271,162 $ 86,303,761 $ 87,895,906 $ 93,097,872 $ 106,115,850 $93,022,654 $ 141,260,638 $ 160,923,208
Net(Expense)Revenue
Governmental activities $ (115,707,116) $ (114,231,921) $ (112,606,966) $ (124,939,611) $ (127,069,493) $ (113,857,107) $ (135,044,441) $ (176,714,198) $ (48,446,809) $ (97,579,670)
Business-type activities 1,400,062 4,438,144 3,997,618 3,024,BS6 8,046,488 4,121,774 12,902,253 (4,971,296) 20,163,731 13,494,311
Total primary government net expense $ (114,307,054) $ (109,793,777) $ a1 609,348) $ (121,914,755) $ (119,023,005) $ (109,735,333] $ (122,142,188) $ (181,685,494) $ (28,283,078) $ (84,085,359)
173
CITY OF LANSING Table 2
CHANGES IN NET POSITION (concluded)
2013-2022
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016 2017 2018 2019 2020 2022 2022
General Revenues and Other Changes in Net Position
Governmental activities
General revenues
Property taxes $ 38,668,837 $ 38,079,548 $ 39,657,382 $ 38,578,548 $ 40,568,278 $ 39,573,468 $ 41,692,930 $41,675,711 $ 45,690,419 $ 47,620,607
Income taxes 29,850,755 31,450,913 31,660,923 34,573,130 35,694,010 38,455,296 37,021,436 37,438,724 37,005,040 37,087,593
Unrestricted grants contributions 31,425,718 35,677,910 36,330,976 36,532,275 38,108,544 39,419,658 39,530,073 42,029,100 46,503,607 47,820,068
Unrestricted investment earnings 58,588 36,836 26,353 99,058 125,539 216,239 463,685 707,383 187,320 (94,154)
Miscellaneous - - 280,280 63,079 135,270 - 64,820 91,088 177,521 (38,468)
Transfers-internal activities (5831117) (705,637) (644,485) (629,715) (746,209) (912,186) (580,817) 4,691,895 3,221,479 (597,000)
Total governmental activities 99,420,781 104,539,570 107,311,429 109,216,375 113,885,432 116,752,475 118,192,127 126,633,901 132,785,386 131,798,646
Business-type activities
Unrestricted investment earnings 356,467 246,616 17,874 - - - - 2,061,667 1,189,678 698,662
Miscellaneous - 2,600 - 3,853 - - - - - -
Transfers-internal activities 583,117 705,637 644,485 629,715 746,209 912,186 580,817 (4,691,895) (3,221,479) 597,000
Gain on sale of assets 2,120,816
Total business-type activities 939,584 954,853 662,359 633,568 746,209 912,186 580,817 (509,412) (2,031,801) 1,295,662
Total primary government $ 100,360,365 $ 105,494,423 $ 107,973,788 $ 109,849,943 $ 114,631,641 $ 117,664,661 $ 118,772,944 $ 126,124,489 $ 130,753,585 $ 133,094,308
Change in Net Position
Governmental activities $ (16,286,335) $ (9,692,351) $ (5,295,537) $ (15,723,236) $ (13,184,061) $ 2,895,368 $ (16,852,314) $ (50,080,297) $ 84,338,577 $ 34,218,976
Business-type activities 2,339,646 5,392,997 4,659,977 3,658,424 8,792,697 5,033,960 13,483,070 (5,480,708) 18,131,930 14,789,973
Total primary government $ (13,946,689) $ (4,299,354) $ (635,560) $ (12,064,812) $ (4,391,364) $ 7,929,328 $ (3,369,244) $ (55,561,005) $ 102,470,507 $ 49,008,949
174
CITY OF LANSING Table 3
FUND BALANCE
GOVERNMENTAL FUNDS
2013-2022
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General fund
Nonspendable $ 75,738 $ 79,770 $ 35,424 $ 492,549 $ 28,342 $ 39,437 $ 38,605 $ 185,369 $ 570,654 $ 759,490
Restricted 9,400 36,854 10,044 - - - - - - -
Committed 2,976,408 2,038,608 837,761 428,106 385,067 283,815 - - 7,972,836 785,099
Unassigned 5,633,528 7,052,830 9,783,911 12,407,748 15,283,857 17,003,260 9,992,885 9,935,641 21,229,263 21,907,213
Total general fund 8,695,074 9,208,062 10,667,140 13,328,403 15,697,266 17,326,512 10,031,490 10,121,010 29,772,753 23,451,802
All other governmental funds
Nonspendable 2,671,151 2,551,975 2,619,065 2,578,331 2,618,884 2,842,489 2,952,027 3,169,987 3,283,816 3,153,577
Restricted 4,368,983 6,902,928 6,865,580 6,934,665 4,730,012 9,009,438 17,038,777 18,550,655 21,235,094 35,877,471
Committed 4,035,145 4,623,112 7,110,485 8,427,253 10,426,961 8,837,341 9,147,988 10,637,417 2,546,040 5,192,514
Unassigned(deficit) (619,931) (522,157) (528,144) (410,252) (411,098) (155,261) (115,546) (82,237)
Total all other governmental funds 10,455,348 13,555,858 16,066,986 17,529,997 17,364,759 20,534,007 29,023,246 32,275,822 27,064,950 44,223,562
Total all governmental funds $ 19,150,422 $ 22,763,920 $ 26,734,126 $ 30,858,400 $ 33,062,025 $ 37,860,519 $ 39,054,736 $ 42,396,832 $ 56,837,703 $ 67,675,364
Note: GASB Statement No.54,Fund Balance Reporting and Governmental Fund Type Definitions,was implemented in 2011. Further information on the
fund balances are found in the footnotes to the financial statements.
175
CITY OF LANSING Table 4
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
2013-2022
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Property taxes and special assessments $ 38,717,552 $ 38,151,162 $ 39,470,249 $ 38,782,759 $ 40,691,325 $ 39,629,305 $ 41,732,645 $ 41,709,020 $ 45,712,919 $ 48,010,607
Income taxes 29,850,755 31,450,913 31,660,923 34,573,130 35,694,010 38,455,296 37,021,436 37,438,724 37,005,040 37,087,593
Licenses and permits 1,509,402 1,508,133 1,551,125 1,559,638 1,494,298 2,113,824 1,399,881 2,427,866 1,930,169 1,932,281
Intergovernmental revenue 40,639,183 41,658,435 36,042,377 34,175,112 36,391,761 41,848,072 45,586,152 44,166,490 77,368,957 113,084,026
Charges for services 11,754,381 13,037,014 12,900,490 14,102,447 13,230,822 12,432,770 15,235,656 13,048,934 15,525,892 15,574,570
Fines and forfeits 3,694,351 2,738,392 3,07S,427 3,455,541 2,510,94S 2,601,063 2,306,990 1,589,733 1,491,641 1,576,283
Interest and rents 53,179 56,550 87,035 145,011 201,367 284,165 631,812 911,454 402,443 119,690
Other 16,757,918 21,379,388 23,162,946 22,854,314 22,952,587 22,101,917 22,391,478 23,371,306 26,397,782 25,760,762
Total revenues 142,976,721 149,979,987 147,950,572 149,647,952 153,167,115 159,466,412 166,306,050 164,663,527 205,834,843 243,145,812
Expenditures
Current Expenditures
General government 23,595,321 21,063,589 21,720,206 23,386,445 23,948,368 22,281,236 27,340,931 23,111,276 19,864,962 25,473,276
Public safety 63,943,082 72,068,298 75,510,743 72,264,468 73,683,246 75,859,065 78,659,682 80,863,159 76,213,091 90,331,314
Public works 8,908,673 13,456,773 13,273,332 11,715,510 11,201,515 11,087,884 11,632,895 12,368,707 11,010,619 12,955,334
Highway and streets 9,937,423 10,496,880 10,357,488 10,838,473 10,969,516 10,104,034 11,984,896 10,711,027 10,857,448 11,450,485
Recreation and culture 6,629,453 8,457,444 7,583,085 7,719,906 7,749,245 8,236,872 8,138,369 7,420,052 6,497,239 9,134,233
Community and economic development - 3,646,035 3,910,924 3,442,110 4,142,612 15,947,504 19,435,277 18,699,058 43,174,711 76,784,433
Other 23,699,202 2,620,316 2,704,982 2,927,391 2,710,979 - - - - -
Debt service
Principal 3,137,159 1,185,257 3,616,297 3,892,862 4,596,159 3,622,053 3,183,595 3,286,705 3,359,672 4,518,916
Interest and fiscal charges 1,421,600 3,48S,104 931,079 1,275,957 1,120,518 949,318 1,000,307 823,907 798,387 2,003,677
Capital outlay 5,489,617 8,715,193 21,016,808 7,221,346 9,328,278 5,146,742 4,798,070 7,891,788 21,325,057 18,396,917
Total expenditures 146,761,530 145,194,889 160,624,944 144,684,468 149,450,436 153,234,708 166,174,022 165,175,679 193,101,186 251,048,585
Excess(deficiency)of revenues over expenditures (3,784,809) 4,785,098 (12,674,372) 4,963,484 3,716,679 6,231,704 132,028 (512,152) 12,733,657 (7,902,773)
Other financing sources(uses)
Transfers in 7,056,932 10,522,162 9,734,572 9,207,856 9,887,627 7,721,661 8,749,296 16,980,511 8,542,188 10,210,859
Transfers out (7,892,449) (12,847,799) (10,002,772) (10,055,346) (11,497,936) (9,283,847) (9,330,113) (13,218,616) (7,325,709) (10,807,859)
Proceeds from borrowing 11,932,046 986,300 16,761,300 2,090,000 - - 8,603,699 - - 27,559,000
Proceeds from the sale of capital assets 497,833 167,737 110,533 268 97,255 128,976 - 92,353 490,735 400,000
Payments to advance refunding escrow agent (6,015,112) - - (2,162,163) - - (7,741,363) - - (8,621,566)
Bond premium(discount) 40,945 80,175 780,670
Total other financing sources(uses) S,579,250 (1,171,600) 16,644,578 (839,210) (1,513,054) (1,433,210) 1,062,189 3,854,248 1,707,214 18,740,434
Net change in fund balances $ 1,794,441 $ 3,613,498 $ 3,970,206 $ 4,124,274 $ 2,203,625 $ 4,798,494 $ 1,194,217 $ 3,342,096 $ 14,440,871 $ 10,837,661
Debt service as a percentage of noncapital expenditures 3.2% 3.4% 2.8% 3.6% 3.8% 3.0% 2.5% 2.5% 2.7% 2.8%
176
CITY OF LANSING Table 5
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Taxable Assessed Value Ratio of Total
Industrial and Assessed
Commercial Total Taxable to Total
Subject to Assessed Total Direct Estimated Estimated
Year Real Personal Act 198 Agricultural Developmental Value Tax Rate Actual Value Actual Value
2013 $ 1,232,109,181 $ 182,543,900 $ 673,887,300 $ 151,900 $ - $ 2,088,692,281 19.70 $ 4,177,384,562 50.0%
2014 1,152,931,800 182,024,000 666,477,900 151,900 2,900 2,001,588,500 19.70 4,002,817,000 50.0%
2015 1,144,848,592 183,420,400 758,406,830 158,100 2,900 2,086,836,822 19.70 4,173,673,644 50.0%
2016 1,162,708,909 196,143,891 806,360,800 175,600 2,900 2,165,392,100 19.70 4,330,784,200 50.0%
2017 1,285,584,500 144,076,700 837,758,400 172,500 - 2,267,592,100 19.70 4,535,184,200 50.0%
2018 1,325,754,900 131,924,900 892,135,800 180,000 2,349,995,600 19.70 4,699,991,200 50.0%
2019 1,422,412,200 143,567,100 1,000,797,500 185,300 2,566,962,100 19.70 5,133,924,200 50.0%
2020 1,537,030,826 157,132,900 1,143,059,850 211,800 2,837,435,376 19.70 5,674,870,752 50.0%
2021 1,638,136,900 171,927,400 1,247,559,700 192,100 1 3,057,816,101 19.70 6,115,632,202 50.0%
2022 1,766,415,343 172,959,000 1,285,295,000 206,900 - 3,224,876,243 19.70 6,449,752,486 50.0%
Source: Lansing City Assessor
177
CITY OF LANSING Table 6
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
(RATE PER$1,000 OF ASSESSED VALUE)
City of Lansing Overlapping Rates Totals
Total State
Year Ended Operating Service City Schools County Education Other(2)
December 31, Tax Year Millage Millage Millage Millage(1) Millage Tax College Millage Millage Total
2013 2012 19.44 .26 19.70 21.73 9.49 6.00 3.81 9.96 70.69
2014 2013 19.44 .26 19.70 21.91 9.50 6.00 3.81 9.96 70.88
2015 2014 19.44 .26 19.70 21.77 10.20 6.00 3.81 9.96 71.44
2016 2015 19.44 .26 19.70 21.83 9.83 6.00 3.81 9.96 71.13
2017 2016 19.44 .26 19.70 22.57 10.06 6.00 3.81 9.96 72.10
2018 2017 19.44 .26 19.70 22.60 10.07 6.00 3.81 11.25 73.43
2019 2018 19.44 .26 19.70 22.50 11.34 6.00 3.81 11.26 74.61
2020 2019 19.44 .26 19.70 25.38 11.34 6.00 3.81 9.97 76.20
2021 2020 19.44 .26 19.70 25.10 11.91 6.00 3.77 10.20 76.68
2022 2021 19.44 .26 19.70 24.51 11.98 6.00 3.77 10.18 76.14
(1)rates for Lansing School District only,using non-principal residency rates
(2)includes Intermediate School,Airport Authority,Capital Area Transit Authority and Capital Area District Library
Source:Lansing City Treasurer
178
CITY OF LANSING Table 7
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
2022 2013
Taxable Taxable
Assessed Percent Assessed Percent
Taxpayer Valuation Rank of Total Valuation Rank of Total
General Motors LLC $ 60,598,657 1 1.88% $ 81,468,000 1 3.55%
Consumers Energy 58,369,140 2 1.81% 22,283,300 3 0.97%
Jackson National Life Insurance Company 38,753,265 3 1.20% 32,771,500 2 1.43%
Accident Fund 25,824,100 4 0.80%
Lansing Properties LLC 25,083,048 5 0.78%
Red Cedar Housing 20,756,700 6 0.64%
Lansing MI MultiFamily Dst 13,964,100 7 0.43%
Lansing Retail Center 13,017,794 8 0.40% 10,661,000 6 0.46%
Emergent BioSolutions 12,289,461 9 0.38%
Hunter Towne Properties 10,623,577 10 0.33%
Demmer Corporation 14,898,600 4 0.65%
Comcast of Michigan LLC 11,644,000 5 0.51%
Sprint Spectrum L.P. 9,496,000 7 0.41%
Heart of the City Assoc 7,271,400 8 0.32%
Emergent BioSolutions 6,881,400 9 0.30%
Quality Dairy Co.#17 6,759,700 10 0.29%
$ 279,279,842 8.66% $ 204,134,900 8.88%
Source: Lansing City Assessor
179
CITY OF LANSING Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Collection Percent (B)
(A) of Current of Levy Collection Percent
Total Year's Taxes Collected Subsequent of Total
Tax Fiscal Adjusted During During to the Year of Total Collections
Year Year Tax Levy Year Levied Year Levied Tax Levy Collections to Tax Levy
2012 2013 $ 40,450,767 $ 39,716,932 98.19% $ 55,532 $ 39,772,464 98.32%
2013 2014 39,336,952 39,238,902 99.75% 20,866 39,259,768 99.80%
2014 2015 38,329,032 38,258,272 99.82% 49,590 38,307,862 99.94%
2015 2016 38,538,226 38,461,152 99.80% 52,758 38,513,910 99.94%
2016 2017 38,431,072 38,370,929 99.84% 50,344 38,421,273 99.97%
2017 2018 39,234,692 39,232,925 100.00% 67,348 39,300,273 100.17%
2018 2019 40,231,255 40,203,313 99.93% 42,639 40,245,952 100.04%
2019 2020 42,128,760 42,123,931 99.99% 17,175 42,141,106 100.03%
2020 2021 43,098,838 43,051,670 99.89% 132,556 43,184,226 100.20%
2021 2022 47,200,360 47,196,707 99.99% 85,532 47,282,239 100.17%
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
180
CITY OF LANSING Table 9
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
Governmental Activities Business-Type Activities
General Installment Net Unamortized General Installment Net Unamortized Percentage
Obligation Purchase Premiums/ Obligation Revenue Purchase Premiums/ Total Primary of Personal Per
Year Bonds Contracts Discounts Loans Bonds Bonds Agreements/Loans Discounts Government Income Capita Population(1)
2013 $ 25,816,914 $ 8,193,615 $ 62,604 $ 512,577 $ 189,536,530 $ 30,135,311 $ 1,637,177 $ 2,548,679 $ 258,443,407 13.10% 2 $ 2,277 114,738
2014 27,180,294 3,100,563 35,294 7,062,234 174,471,861 24,055,438 1,668,081 1,729,013 239,302,778 11.08% 2 2,097 114,113
2015 27,790,281 16,387,327 35,281 7,872,600 167,787,460 19,445,482 1,459,431 1,604,958 242,382,820 10.27% 2 2,133 113,659
2016 21,968,330 15,268,317 68,330 7,872,600 154,303,563 20,671,135 1,246,673 1,715,511 223,114,459 9.42% 2 1,955 114,110
2017 18,080,040 13,757,531 15,040 7,728,428 143,761,916 18,982,246 1,029,723 1,552,355 204,907,279 8.04% 2 1,745 117,400
2018 15,325,818 12,289,396 19,222 7,476,545 136,938,668 17,258,138 808,500 1,389,200 191,505,487 7.18% 2 1,637 116,986
2019 14,925,420 11,274,020 761,721 7,242,002 117,713,909 14,075,000 582,920 2,097,766 168,672,758 6.41% 2 1,437 117,388
2020 11,792,231 10,230,073 748,067 7,000,422 112,290,745 12,525,000 352,897 1,890,331 156,829,766 5.96% 2 1,327 118,210
2021 27,958,180 9,156,735 663,565 7,660,461 115,160,822 10,975,000 118,343 2,142,487 173,835,593 6.85% 2 1,543 112,664
2022 29,629,300 22,457,000 586,222 6,886,326 103,495,891 9,425,000 - 1,998,159 174,477,898 6.52% 2 1,548 112,684
(1)population per decennial census by the U.S.Census Bureau
(2)personal income data comes from U.S.Census Bureau,American Community Survey 2009
181
CITY OF LANSING Table 10
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio of
Fiscal Debt Debt Net Bonded Net
Year Taxable Service Payable From Debt to Bonded
Ended Assessed Gross Bonded Monies Restricted Net Bonded Taxable Debt per
June 30, Population(1) Value(3) Debt(2) Available Revenues Debt Value Capita
2013 113,488 $ 2,297,591,331 $ 217,964,727 $ - $ 192,085,209 $ 20,441,914 0.0089 $ 178
2014 114,113 2,001,588,500 203,416,462 - 176,200,874 23,620,294 0.0118 207
2015 113,659 2,086,836,822 197,217,980 1,000 169,392,418 25,204,281 0.0121 222
2016 114,110 2,165,392,100 178,055,734 1,000 156,019,074 20,397,330 0.0094 179
2017 117,400 2,267,592,100 163,409,357 1,000 145,314,271 17,569,040 0.0077 150
2018 116,986 2,349,995,600 153,772,908 1,000 138,327,868 15,324,818 0.0065 131
2019 117,388 2,566,962,100 135,498,816 30,111 119,811,675 14,895,309 0.0058 127
2020 118,210 2,837,435,376 126,721,374 29,361 114,181,076 11,762,870 0.0041 100
2021 112,664 3,057,816,101 145,925,054 29,361 117,303,309 28,592,384 0.0094 254
2022 112,684 3,224,876,243 135,709,572 29,361 105,494,050 30,186,161 0.0094 268
(1) Source: 2000 and 2010 Census by the U.S.Census Bureau(www.census.gov/quickfacts/lansingcitymichigan)
(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
182
CITY OF LANSING Table 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30,2022
(UNAUDITED)
Overlapping
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Net direct-City $ 30,215,522 100.00% $ 30,215,522
Share of County-issued bonds
Drain Commission 24,445,465 100.00% 24,445,465
Other Overlapping Debt
Eaton Intermediate School District 2,910,000 1.19% 34,629
Ingham Intermediate School District 14,358,000 24.83% 3,565,091
Waverly School District 58,910,000 0.30% 176,730
Lansing School District 142,310,000 82.23% 117,021,513
East Lansing School District 94,568,377 2.83% 2,676,285
Holt School District 53,908,286 2.34% 1,261,454
Ingham County 75,681,363 5.64% 4,270,909
Eaton County 20,619,119 2.40% 494,859
Clinton County 26,093,098 0.28% 73,061
Lansing Community College 89,380,000 20.47% 18,296,086
Okemos School District 23,096,460 4.92% 1,136,346
Mason School District 48,110,000 1.28% 615,808
Grand Ledge School District 105,610,000 2.88% 3,041,568
Total Overlapping $ 177,109,804
Total Direct and Overlapping $ 207,325,326
Sources: Municipal Advisory Council
Note: Overlapping debt percentages are apportioned based upon relative assessed values.
183
CITY OF LANSING Table 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(UNAUDITED)
Legal Debt Margin Calculation for Fiscal Year 2022
Assessed value,real and personal property $ 3,224,876,243
Legal debt margin
Debt limitation-10 percent of total valuation 322,487,624
Debt applicable to limit
Total City Bonded Debt 135,709,572
City Share:
Drain Commission-County Issued 24,445,465
TIF Supported Bonds 26,955,000
187,110,037
Less:
Brownfield Redevelopment Authority Bonds $ (39,720,000)
Sewage Disposal Revenue Bonds (9,425,000)
Pollution Abatement(CSO Project)Bonds (64,715,151)
Share of County-issued bonds (24,445,465) (138,305,616)
Total net debt applicable to limit 48,804,421
Legal debt margin $ 273,683,203
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Debt limit $ 322,487,624 $ 283,743,538 $ 256,696,210 $ 207,850,642 $ 233,606,400 $ 223,687,492 $ 216,539,210 $ 208,683,682 $ 205,138,999 $ 208,869,228
Total net debt applicable to limit 48,804,421 81,956,344 81,532,491 72,669,623 87,295,949 81,398,300 86,432,459 91,352,614 93,062,835 91,833,157
Legal debt margin $ 273,683,203 $ 201,787,194 $ 175,163,719 $ 135,181,019 $ 146,310,451 $ 142,289,192 $ 130,106,751 $ 117,331,068 $ 112,076,164 $ 117,036,071
Total net debt applicable to the limit
as a percentage of debt limit 15.13% 28.88% 31.76% 34.96% 37.37% 36.39% 39.92% 43.78% 45.37% 43.97%
184
CITY OF LANSING Table 13
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Sewage Disposal Bonds
Direct Net Revenue
Gross Operating Available for Debt Service Requirements
Revenue Expenses(l) Debt Service Principal Interest Total Coverage (2)
2013 $ 31,169,428 $ 12,112,994 $ 19,056,434 $ 3,160,000 $ 1,111,390 $ 4,271,390 4.46
2014 31,996,794 13,424,901 18,571,893 3,265,000 1,054,878 4,319,878 4.30
2015 31,945,082 13,295,574 18,649,508 1,490,000 920,788 2,410,788 7.74
2016 32,676,182 14,066,527 18,609,655 1,550,000 861,188 2,411,188 7.72
2017 35,053,701 13,843,649 21,210,052 1,550,000 799,188 2,349,188 9.03
2018 35,608,454 14,994,871 20,613,583 1,550,000 737,188 2,287,188 9.01
2019 36,696,367 18,587,607 18,108,760 1,550,000 690,688 2,240,688 8.08
2020 34,968,585 19,568,461 15,400,124 1,550,000 613,188 2,163,188 7.12
2021 38,635,421 28,902,815 9,732,606 1,550,000 535,688 2,085,688 4.67
2022 36,142,653 10,866,625 25,276,028 1,550,000 458,188 2,008,188 12.59
(1) Operating expenses less depreciation
(2) Coverage is defined as net revenue available for debt service divided by debt service requirements
185
CITY OF LANSING Table 14
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Lansing
Personal Per Capita Median School District Unemployment Labor
Year Population (1) Income Income (1) Age 1 Enrollment(2) Rate (3) Force 3
2013 113,488 $ 1,973,149,386 $ 17,197 32.40 12,754 11.3% 58,087
2014 114,113 2,159,930,864 18,928 32.00 11,936 9.1% 57,809
2015 113,659 2,359,106,204 20,756 32.10 11,525 7.4% 57,807
2016 114,110 2,368,467,160 20,756 32.10 11,014 6.0% 58,009
2017 117,400 2,548,754,000 21,710 32.00 10,873 6.5% 59,321
2018 116,986 2,666,695,870 22,795 32.30 10,641 5.8% 59,537
2019 117,388 2,629,725,976 22,402 32.70 10,462 5.0% 59,251
2020 118,210 2,536,936,212 22,196 31.90 10,661 16.0% 63,541
2021 112,664 2,616,734,064 23,226 35.50 10,031 5.5% 59,058
2022 112,684 2,674,442,056 23,734 34.50 10,173 4.7% 57,447
(1) Source: U.S. Census Bureau
(2) Source: Lansing School District
(3) Source: Michigan Bureau of Labor Market Information and Strategic Initiatives
186
CITY OF LANSING Table 15
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS PRIOR
(UNAUDITED)
2022 2013
Percentage of Percentage of
Company Employees (1) Rank Employment(2) Employees (1) Rank Employment(2)
STATE OF MICHIGAN 13,880 1 5.68% 13,700 1 6.23%
MICHIGAN STATE UNIVERSITY 10,253 2 4.20% 10,725 2 4.88%
SPARROW HEALTH SYSTEM 9,000 3 3.68% 5,735 3 2.61%
GENERAL MOTORS 4,274 4 1.75% 5,522 4 2.51%
MCLAREN HEALTH(3) 3,000 5 1.23% 2,400 7 1.09%
AUTO OWNERS INSURANCE GROUP 2,720 6 1.11%
JACKSON NATIONAL LIFE INS CO 2,439 7 1.00%
PECKHAM 2,200 8 0.90%
DART CONTAINER CORP 2,000 9 0.82%
LANSING COMMUNITY COLLEGE 1,957 10 0.80% 2,990 6 1.36%
LIBERTY NATIONAL LIFE INSURANCE 5,000 5 2.28%
MEIJER 1,880 8 0.86%
LANSING SCHOOL DISTRICT 1,613 9 0.73%
SOUTHERN-OWNERS INSURANCE 1,500 10 0.68%
Greater Lansing metropolitan area employment 244,326 219,761
(1) Data is representative of the Greater Lansing Region
(2) Source:www.purelansing.com/Workforce&Data>Top Employers for 2021 data
(3) Formerly Ingham Regional Medical Center
187
CITY OF LANSING Table 16
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Full-time Equivalent Employees
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government
City council 10 10 10 10 10 10 10 10 10 10
Mayor's office 5 5 5 6 6 7 (G) 7 11 12 12
City clerk 5 5 5 5 5 5 6 6 6 6
54-A district court 43 43 46 45 45 45 45 45 45 45
City attorney's office 10 10 11 11 11 11 12 it 12 13
City TV 2 2 2 2 2 2 2 3 2 2
Internal auditor 1 1 1 1 1 1 1 1 1 1
Human resources 9 10 10 12 12 11 11 11 11 11
Information technology 10 11 11 11 11 16 16 15 15 14
Finance
Accounting/budget/purchasing 10 10 9 8 (E) 8 8 8 7 8 14
Treasury/income tax 20 9 9 10 11 11 13 16 14 12
Assessing 11 11 11 11 11 11 11 11 11
Property management - (B) - - - - - - - - -
Fleet management - (B)
125 127 130 132 133 138 142 147 147 151
Planning&neighborhood development
Administration 2 2 2 2 2 2 2 3 3 3
Code compliance 15 - (D) - - - 14 (F) 15 19 19 19
Building safety 12 13 13 13 13 13 13 15 14 14
Planning 4 4 4 4 4 3 (G) 4 4 3 3
Development 9 11 10 10 9 9 9 7 8 8
Parking&transportation (C) 20 15 14 14 14 14 14 19 19 19
62 45 43 43 42 55 57 67 66 66
Neighborhood&Citizen Engagement 1 (G) 5 5 5 5
Police 229 (C) 234 (D) 239 239 240 241 243 239 240 251
Fire 180 188 181 181 181 181 182 186 183 184
Code Compliance 14 (D) 14 14 14 - (F)
180 202 195 195 195 181 182 186 183 184
Public services
Administration&engineering 19 19 19 20 20 20 21 22 23 23
Operations&maintenance (C) 120 117 (D) 117 117 117 118 118 113 116 116
Service garage - - - - - - - 1 1 1
Wastewater 41 41 41 41 41 42 42 42 42 42
Property Management 18 (B) 18 18 18 16 16 16 19 18 18
Fleet Management 27 (B) 27 27 26 30 30 30 29 29 29
225 222 222 222 224 226 227 226 229 229
Human relations&community services 5 6 7 7 8 9 10 11 10 10
Parks&recreation
Administration&design 5 6 6 6 6 6 6 6 6 6
Leisure&special recreation 8 6 6 6 6 6 6 10 6 6
Cemeteries 1 1 1 1 1 1 1 1 1 1
Golf/ice arena 3 3 3 3 3 3
17 16 16 16 16 16 13 17 13 13
Total 843 852 852 854 858 867 879 898 893 909
Source:The City of Lansing
The following restructuring of departments have occurred:
(B)Fleet and Property Management were moved from the Finance Department to the Public Service Department.
(C)On June 27,2012,911 Dispatch employees were transferred from the City to Ingham County.
(D)Code Compliance(14 positions)were transferred from ED&P to Fire;four(4)positions to Police,and one(1)position to Public Service for FY 2014.
(E)Purchasing operations were transferred to the Lansing Board of Water and Light for FY 2016.
(F)Code Compliance was transferred from Fire to ED&P.
(G)One(1)position was transferred from Human Resources to Mayor's Office and one(1)position was transferred from ED&P to N&CE in FY 2018.
188
CITY OF LANSING Table 17
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public safety
Fire department responses 18,444 19,427 20,170 21,115 21,902 22,768 22,389 21,904 21,650 25,994
EMS related 15,918 16,235 17,376 18,275 18,827 19,264 19,655 18,975 18,381 21,511
Fire related 2,526 3,012 2,794 2,840 3,075 3,063 2,734 2,929 3,269 4,483
Police department responses 73,087 76,855 79,331 71,468 82,722 107,379 84,869 80,449 77,399 78,500
Arrests 7,196 5,656 4,510 3,880 5,710 4,507 4,418 3,524 2,446 2,601
Traffic violations 14,905 7,756 10,781 7,334 9,385 6,496 6,963 5,054 4,287 6,801
Public works
Potholes filled 33,155 55,193 53,281 53,488 53,332 54,773 2,589 1,042 698 4,997
Streets resurfaced(miles) 6.0 4.6 4.0 8.8 8.7 6.0 4.6 11.0 13.6 1.9
Recreation
Recreation participation 55,122 50,859 122,639 101,335 98,978 120,245 93,264 29,313 58,284 109,582
Pavilion rentals 199 185 206 242 180 202 222 78 140 142
Sewage disposal
Average amount processed daily(gal) 14.75 million 14.49 million 13.28 million 15.46 million 16.32 million 14.45 million 16.60 million 14.18 million 10.61 million 12.1 million
Parking system
Average number of monthly permits 2,718 2,891 3,077 3,218 2,581 3,310 2,500 869 1,203 1,200
Parking tickets issued 38,127 34,373 30,888 32,990 33,492 32,587 37,105 16,481 19,876 30,306
Cemetery
Lots sold 113 93 138 115 162 88 103 121 119 85
Golf
Annual rounds played 25,554 22,786 22,998 13,325 14508 20,492 - - - -
Garbage and rubbish
Yards sent to landfill 17,985 18,829 19,667 20,115 20,007 20,492 20,957 22,825 27,865 26,885
Recycling
Recycled goods sold(tons) 3,562 5,075 5,691 5,940 5,834 5,593 5,407 5,322 6,258 6,310
Yards composted 21,832 25,260 21,685 24,413 24,223 20,031 21,198 14,262 19,888 13,864
Source: The City of Lansing,Michigan
189
CITY OF LANSING Table 18
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public safety
Police stations 2 2 2 2 2 2 2 2 2 2
Police patrol units 60 61 60 60 60 60 58 58 60 57
Fire stations 6 6 6 6 6 6 8 8 8 8
Emergency Vehicles 0 0 0 0 0 0 55 27 31 44
Public works
Streets(miles) 411.00 411.00 414.00 414.00 414.00 414.00 413.00 413.23 413.23 412.00
Traffic signals 200 200 200 200 200 200 184 206 206 206
Recreation
Park acreage 2,364.85 2,364.85 2,363.45 2,134.26 2,134.26 2,017.56 2,174 1,659 1,659 1,641
Playgrounds 75 72 72 74 74 74 76 77 76 76
Baseball/softball fields 61 61 47 25 25 25 22 22 22 22
Soccer/football fields 6 6 6 14 15 15 15 16 16 16
Community centers 4 4 4 4 4 4 4 4 4 4
Sewage disposal
Sanitary sewers(miles) 359 359 361 361 361 363 364 365 365 367
Storm sewers(miles) 234 234 235 235 235 237 238 239 239 241
Combined sewers(miles) 188 188 188 188 188 187 185 185 184 183
Parking system
Ramps 4 4 4 4 4 4 3 3 3 3
Lots 18 17 17 16 16 16 16 16 17 14
Meters 2,452 2,452 2,166 2,166 2,166 2,166 2166 500 200 200
On-street Pay Stations 134 128 128
Cemetery
Number of cemeteries 3 3 3 3 3 3 3 3 3 3
Golf
Number of courses 1 1 1 1 1 1 1 1 1 1
Acreage 115 115 115 115 115 115 115 115 115 115
Garbage and rubbish
Refuse collection trucks 17 17 17 14 14 16 8 7 7 7
Recycling
Recycling trucks 7 7 7 5 5 7 8 8 8 8
Compost trucks 0 0 0 0 0 0 8 7 7 7
Sources:The City of Lansing,Michigan
190