HomeMy WebLinkAbout2024 Comprehensive Annual Financial Report CAFR Audit
CITY OF LANSING, MICHIGAN
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
Prepared by:
Department of Finance
Chief Financial Officer/Finance Director
Desiree A. Kirkland
Controller
Cynthia Gill
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION ................................................................................................................................................................1
Elected and Appointed Officers .......................................................................................................................................................2
Letter of Transmittal ......................................................................................................................................................................... 3-7
Certificate of Achievement for Excellence in Financial Reporting ...................................................................................8
Table of Organization ..........................................................................................................................................................................9
FINANCIAL SECTION ......................................................................................................................................................................... 10
INDEPENDENT AUDITOR’S REPORT ....................................................................................................................................... 11-13
MANAGEMENT’S DISCUSSION AND ANALYSIS .................................................................................................................. 14-24
BASIC FINANCIAL STATEMENTS ................................................................................................................................................. 25
Government-wide Financial Statements
Statement of Net Position ..................................................................................................................................................... 27-28
Statement of Activities .............................................................................................................................................................. 29
Fund Financial Statements
Governmental Funds
Balance Sheet ............................................................................................................................................................................ 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
Statement of Net Position ................................................................................................................................................... 37
Statement of Revenues, Expenses, and Changes in Fund Net Position ............................................................ 38
Statement of Cash Flows ................................................................................................................................................... 39-40
Fiduciary Funds
Statement of Fiduciary Net Position ............................................................................................................................... 42
Statement of Changes in Fiduciary Net Position ....................................................................................................... 43
Discretely Presented Component Units Financial Statements
Combining Statement of Net Position ............................................................................................................................ 46
Combining Statement of Activities .................................................................................................................................. 47
Notes to Financial Statements .............................................................................................................................................. 48-116
REQUIRED SUPPLEMENTARY INFORMATION ..................................................................................................................... 117
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .................... 118-120
State and Federal Grants Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ......................... 121
Employees’ Retirement System Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios ........................................................................ 122
Schedule of Contributions ...................................................................................................................................................... 123
Schedule of Investment Returns.......................................................................................................................................... 124
TABLE OF CONTENTS
Page
REQUIRED SUPPLEMENTARY INFORMATION (concluded)
Police and Fire Retirement System Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios ........................................................................ 125
Schedule of Contributions ...................................................................................................................................................... 126
Schedule of Investment Returns.......................................................................................................................................... 127
VEBA OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................................................. 128
Schedule of Contributions ...................................................................................................................................................... 129
Schedule of Investment Returns.......................................................................................................................................... 130
Employees’ Retirement System OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................................................. 131
Schedule of Contributions ...................................................................................................................................................... 132
Schedule of Investment Returns.......................................................................................................................................... 133
Police and Fire Retirement System OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................................................. 134
Schedule of Contributions ...................................................................................................................................................... 135
Schedule of Investment Returns.......................................................................................................................................... 136
Note to Required Supplementary Information ................................................................................................................. 137
OTHER SUPPLEMENTARY INFORMATION ............................................................................................................................ 138
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds .............................................................................. 140
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmajor Governmental Funds .............................................................................................................. 141
Combining Balance Sheet - Nonmajor Special Revenue Funds ..................................................................... 143-144
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmajor Special Revenue Funds..................................................................................................... 145-146
Schedules of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - by Fund ...................................................................................................................................... 147-155
Combining Balance Sheet - Nonmajor Debt Service Funds ................................................................................. 157
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balance - Nonmajor Debt Service Funds ................................................................................................................... 158
Combining Balance Sheet - Nonmajor Capital Projects Funds ........................................................................... 160
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmajor Capital Projects Funds ........................................................................................................... 161
Combining Balance Sheet - Nonmajor Permanent Funds .................................................................................... 163
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmajor Permanent Funds .................................................................................................................... 164
Nonmajor Enterprise Fund
Combining Statement of Net Position ........................................................................................................................... 166
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................... 167
Combining Statement of Cash Flows ............................................................................................................................. 168
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 ........................................................................................................................... 170
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................... 171
Combining Statement of Cash Flows ............................................................................................................................. 172
Fiduciary Funds
Pension and Other Postemployment Benefit Trust Funds
Combining Statement of Fiduciary Net Position .................................................................................................. 174
Combining Statement of Changes in Fiduciary Net Position .......................................................................... 175
Custodial Funds
Combining Statement of Fiduciary Net Position .................................................................................................. 176
Combining Statement of Changes in Fiduciary Net Position .......................................................................... 177
STATISTICAL SECTION (UNAUDITED) .................................................................................................................................... 178
Table
1 Net Position by Component ........................................................................................................................................... 180
2 Changes in Net Position ............................................................................................................................................. 181-182
3 Fund Balance, Governmental Funds .......................................................................................................................... 183
4 Changes in Fund Balances of Governmental Funds ............................................................................................ 184
5 Assessed Value and Estimated Actual Value of Taxable Property ................................................................ 185
6 Direct and Overlapping Property Tax Rates .......................................................................................................... 186
7 Principal Property Taxpayers ...................................................................................................................................... 187
8 Property Tax Levies and Collections ......................................................................................................................... 188
9 Ratios of Outstanding Debt by Type .......................................................................................................................... 189
10 Ratios of General Bonded Debt Outstanding ......................................................................................................... 190
11 Direct and Overlapping Governmental Activities Debt ..................................................................................... 191
12 Legal Debt Margin Information ................................................................................................................................... 192
13 Pledged-Revenue Coverage ........................................................................................................................................... 193
14 Demographic and Economic Statistics ..................................................................................................................... 194
15 Principal Employers ......................................................................................................................................................... 195
16 Full-Time Equivalent City Governmental Employees by Function/Program .......................................... 196
17 Operating Indicators by Function/Program .......................................................................................................... 197
18 Capital Assets Statistics by Function/Program .................................................................................................... 198
1
INTRODUCTORY SECTION
2
CITY OF LANSING, MICHIGAN
LANSING CITY GOVERNMENT
Fiscal Year Ended June 30, 2024
Tamera Carter, At Large
Crystal Thomas
Internal Auditor....................................................................................................................... Charles H. Randall
City Assessor.............................................................................................................................. Jennifer Czeiszperger
City Attorney..............................................................................................................................
Human Relations & Community Service Director..................................................... Kimberly Coleman
Communications Director.................................................................................................... Scott Bean
Chief of Staff............................................................................................................................... Mark Lawrence
Economic Development & Planning Director............................................................. Rawley Van Fossen
Fire Chief..................................................................................................................................... Brian Sturdivant
Greg Venker
Public Service Director.......................................................................................................... Andy Kilpatrick
Neighborhoods & Citizen Engagement.......................................................................... DeLisa Fountain
Parks & Recreation Director............................................................................................... Brett Kaschinske
Police Chief................................................................................................................................. Robert Backus
Ryan Kost, 1st Ward
CLERK
Chris Swope
DISTRICT COURT JUDGES
OFFICERS
Brian T. Jackson, 4th Ward
Stacia Buchanan, Chief Judge
Kristen D. Simmons
Tony Flores
Cynthia M. Ward
Jeremy A. Garza, Council President, 2nd Ward
Adam Hussain, Council Vice President, 3rd Ward
Peter Spadafore, At Large
Jeffrey Brown, At Large
Trini Pehlivanoglu, At Large
MAYOR
Andy Schor
CITY COUNCIL
Chief Information Officer/Chief Administrative Officer......................................... Christopher Mumby
Chief Finanical Officer........................................................................................................... Desiree A. Kirkland
Court Administrator............................................................................................................... Anethia Brewer
Chief Labor Negotiatior......................................................................................................... Dennis Parker
Chief Strategy Officer............................................................................................................. Jake Brower
City Treasurer...........................................................................................................................
Human Resources Director ................................................................................................ Elizabeth O'Leary
3
FINANCE DEPARTMENT
124 W. Michigan Ave., 8th Floor
Lansing, Michigan 48933
517.483.4500
December 10, 2024
Council President Jeremy A. Garza and Council Members
10th Floor City Hall
Lansing, Michigan 48933-1694
Dear President, Council Members, and Citizens
The Finance Department is pleased to submit the annual comprehensive financial report for the City of Lansing,
Michigan, for the fiscal year ended June 30, 2024.
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 2023/2024 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,
2024, 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 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, 2024, 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.
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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,
Brownfield Redevelopment Authority, Saginaw Street Corridor Improvement Authority, Michigan Avenue
Corridor Improvement Authority, South MLK Jr. Blvd. Corridor Improvement Authority, and Public Media
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, 2024, 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, policymaking, 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.
5
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, health care, education, and industries. With Michigan State University, Davenport University,
Western Michigan University, 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 - University of Michigan Health-Sparrow 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 region's cultural center. 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.
The City of Lansing brought our economic development team back in-house in mid-2022, re-establishing the
Lansing Economic Development Corporation. With eight 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).
Development Projects
Some notable 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., south of the REO Town
Commercial District.
• The Ovation Music and Arts Center, which will be located downtown next to the former Lake Trust
location, will be a new $30 million, state-of-the-art live performance venue.
For the year 2024, Lansing EDC was able to get 4 projects from the Prospect to the Approved stage. These
projects represent nearly half a billion dollars in new investment in Lansing and are now ready to start
construction or are already underway. Projects Approved in 2024 include:
• 1102 S. Washington Avenue: Commercial Redevelopment
• New Vision Lansing: Multi-Family Residential and Commercial Redevelopment
• The Ovation Music and Arts Center: Commercial and Cultural Redevelopment
• Neogen Corporation Expansion: Business Development
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 Corridor Improvement Authority.
6
The S. Martin Luther King Corridor Improvement Authority (SMLKCIA) has continued its efforts to implement
traffic calming measures along the corridor. The S. MLK CIA is working with the Michigan Department of
Transportation to install and maintain pedestrian islands along the corridor in 2025. These measures strive to
reduce the number of accidents and deaths on the corridor and encourage more pedestrian activity. In addition
to this effort, four covered CATA bus shelters were installed along the corridor this year. The S. MLK CIA, with
the assistance of the Thriving Communities Grant and community organizations/stakeholders, plans to host an
art competition for local students. The art selected from this competition will decorate the bus shelters.
The S. MLK CIA plans to launch a business improvement grant for businesses on the corridor to improve the
aesthetic and vibrancy of the corridor. In addition to that effort, the S. MLK CIA installed street sign toppers in
honor of Dr. Martin Luther King Jr., using the topper to help brand the corridor as the “Dream Corridor”. The S.
MLK CIA continues to work with the City’s stakeholders to redevelop the Logan Square shopping center. Finally,
The S. MLK CIA is working with the City to demolish abandoned buildings along the corridor. Establishing more
green space and development ready sites within the corridor.
The Saginaw Street Corridor Improvement Authority (SSCIA) has been working on a marketing and
communications outreach program. The SSCIA established a communications and marketing subcommittee
made up of individuals from the community and the board. The subcommittee developed a marketing plan and
RFP for services. The SSCIA hopes to find a local marketing firm to work with on its efforts. Over the summer,
the SSCIA worked together to install a beautification project at the west side entrance to the corridor, known as
the point. The SSCIA also funded the “LANSING” Sign project, proudly hosted on the corridor. The “LANSING”
Sign project consists of seven six-foot tall letters proclaiming the City’s name and was decorated by seven local
artists.
The Michigan Avenue Corridor Improvement Authority (MACIA) continues to support local businesses on the
corridor during the lengthy street redesign. MACIA installed eye-catching signage on the adjacent streets to
redirect consumers to businesses on Michigan Avenue. The MACIA is making progress on its Block 2000 Façade
Improvement effort, the authority hopes to complete this project in 2025.
The North Grand River Avenue Corridor Improvement Authority known as the Lansing Gateway CIA approved
their Development and Tax Increment Finance (Development &TIF) Plan late this summer. The Development &
TIF Plan outlines development efforts for the CIA, including community engagement, corridor aesthetics and
infrastructure improvements, and business support initiatives. The Lansing Gateway CIA will use the 2024
taxable value of the properties along the corridor as their baseline and start capturing tax increments in 2025 to
fund their efforts. Utilizing the $100,000 ARPA funds allocated to the LGCIA, the authority installed street sign
toppers along the corridor, planted a landscaping project on the east side of the corridor, and hosted a
community event at the Turner-Dodge House.
Façade Improvement Program
Lansing EDC administers the City of Lansing Facade Improvement Grant Program. This program provides design
assistance as well as reimbursement for the redevelopment and improvement of exterior commercial facades.
The purpose of this program is to assist with aesthetic beauty and safety improvements as well as enhance the
street appearance of Lansing businesses. Because of this program, Lansing properties have become more
attractive to customers and the community, increasing the overall value of local businesses.
In 2024, 11 businesses were awarded grants from the Facade Improvement Program, totaling $170,000,
spurring an additional $250,000 in private investment. Businesses supported through the Façade Improvement
Program can be found all over Lansing and have been appreciated by the community and business owners, who
see this as a way for the City of Lansing to reinvest in the Lansing economy.
7
Business Services
In 2024 the Lansing EDC offered several business services to local Lansing businesses. These services included
workshops and seminars, liquor licenses and business loans.
The liquor license program is to assist businesses that are looking to obtain a liquor license but have difficulty
finding a suitable liquor license on the open market. The Lansing EDC assisted two new businesses with
obtaining liquor licenses in growing parts of the city. The first was a development liquor license for Jollof Afro
Caribbean Lounge in downtown Lansing. The second was a redevelopment liquor license with Lansing DuckPin
Bowling, which is in the Red Cedar Redevelopment District.
The Lansing EDC also continued to assist local businesses with our microloan program. The microloan program
offers favorable loan terms to businesses that need short-term financial assistance. The Lansing EDC has loaned
over $200,000 in direct assistance to six businesses in the Lansing area. This past year the Lansing EDC provided
$50,000 in loan support.
Additionally, the Lansing EDC partnered with PNC Bank to offer workshops and six seminars for small
businesses, with topics ranging from business plans to financials. This program provided a venue for local
business owners to come and ask questions about business banking, business lending, business financials, and
techniques to lower costs and grow their businesses. The Lansing EDC and PNC were able to help educate and
assist over 25 local Lansing business owners through this program.
Lansing Equitable Economic Development (LEED) Initiative
In 2021, the Jobs and Economic Development Workgroup of Lansing Mayor Andy Schor’s Racial Justice and
Equity Alliance identified the critical need to ensure Lansing’s BIPOC (Black, Indigenous, People of Color)
populations have the tools, opportunities, and access to expertise, resources, and training needed to start and
sustain successful businesses, and to participate in the economic development process.
To address these findings, the Lansing EDC developed the Lansing Equitable Economic Development (LEED)
Initiative. The LEED Initiative was designed to equip BIPOC entrepreneurs with financial resources and
technical assistance to build strong successful businesses and increase the number of BIPOC-led real estate
development projects.
The Empower Program is a component of the LEED Initiative. In 2024, 12 Lansing business owners participated
in the 2nd cohort of the Empower Program. The Empower Program is a 6-month program that provides
business owners with a team of dedicated project managers, consultants, and business specialists to create and
implement an individualized business development plan. Business owners also participate in bi-weekly in-
person training sessions around business strategy, marketing, establishing systems and automation to scale
their operations, and other topics. Participants have received photography services to develop marketing and
promotional materials, human resource consulting to develop staffing strategies and systems, financial
management consulting, and a host of other technical assistance free of charge.
The Lansing EDC is in the process of launching additional programs that will provide funds for BIPOC-owned
business sustainability and expansion as well as programs to provide training, mentorship, and networking
opportunities for emerging BIPOC real estate developers and spur investment in focus areas in the City of Lansing.
Cordially,
Desiree A. Kirkland
Desiree A. Kirkland, Finance Director
8
Table of Organization
9
Citizens of Lansing
City Clerk City Council Mayor 54-A District Court
Internal Audit City Attorney's Office of
Review Transactions
Identify Efficiencies
Analyze Programs
Legal Advisor/Defender
Prosecutor for City
Public Education Grant
City Television
Parks &
Patrol
Crime Investigation
Community Policing
Social Work
Detention
Suppression
Prevention
Emergency Mgmt.
Rescue/Hazards
Planning/Zoning
Code Compliance
Building Safety
Parking System
Economic Dev. Corp.
LEPFA
Downtown Lansing, Inc
Neighborhood Resources
Citizen Engagement
Financial Empowerment
Roads/Sidewalks
Sewers/Treatment
Trash/Recycling
Grounds Maint.
Engineering
Property Mgmt.
Fleet Services
Parks Design
Recreation Programs
Community Centers
Cemeteries
Golf
Police Fire Economic Neighborhoods Public
Assessing
IT Helpdesk
Cybersecurity
Software Mgmt.
Recruiting
Training
Payroll/Benefits
Retirement
Grant Writing Assistance
Human Services Grants
Police Investigations
Neighborhood Ombudsman
Accounting/Budget
Financial Reporting
Strategic Planning
Income Taxes
Property Taxes
Assessing
Property Tax Roll
Information Human Human Relations & Finance Operations Treasury
10
FINANCIAL SECTION
11
INDEPENDENT AUDITOR’S REPORT
To the 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, 2024, 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, 2024, 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 Government Auditing 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.
12
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.
13
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 the purpose of additional analysis and is not a required part
of the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the 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
performed, we conclude that an 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 10, 2024,
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 10, 2024
14
MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
15
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, 2024 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 51,507,547$
Change in total net position 117,251,445
Fund balances, governmental funds 295,662,911
Change in fund balances, governmental funds 46,132,156
Unassigned fund balance, general fund 31,366,271
Change in fund balance, general fund 10,990,349
Long-term obligations outstanding 401,891,536
Change in long-term obligations 4,319,705
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).
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
16
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.
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
17
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, Public Safety Capital Projects 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 post-
employment 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, 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.
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
18
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 $117,251,445 over the course of this fiscal year’s operations and
came to a total of $51,507,547. Net position of governmental activities increased $99,524,236, and business-
type activities increased $17,727,209. Explanations for those changes are described below under the
governmental activities and business-type activities sections of this Management Discussion and Analysis.
2023 2024 2023 2024 2023 2024
Current and other assets 360,802,878$ 386,021,657$ 93,844,460$ 100,108,710$ 454,647,338$ 486,130,367$
Capital assets, net 238,293,979 254,074,672 349,092,019 348,518,214 587,385,998 602,592,886
Total assets 599,096,857 640,096,329 442,936,479 448,626,924 1,042,033,336 1,088,723,253
Deferred outflows of resources 56,279,711 25,983,198 6,547,737 4,406,790 62,827,448 30,389,988
Current liabilities 75,311,106 64,078,358 20,003,397 20,003,378 95,314,503 84,081,736
Noncurrent liabilities 853,493,720 826,020,529 158,634,947 143,634,727 1,012,128,667 969,655,256
Total liabilities 928,804,826 890,098,887 178,638,344 163,638,105 1,107,443,170 1,053,736,992
Deferred inflows of resources 62,618,996 12,503,658 542,516 1,365,044 63,161,512 13,868,702
Net position
Investment in capital assets 152,933,894 176,420,751 227,979,176 235,698,400 380,913,070 412,119,151
Restricted 42,209,665 58,248,755 2,486,846 2,555,433 44,696,511 60,804,188
Unrestricted (531,190,813) (471,192,524) 39,837,334 49,776,732 (491,353,479) (421,415,792)
Total net position (336,047,254)$ (236,523,018)$ 270,303,356$ 288,030,565$ (65,743,898)$ 51,507,547$
Governmental Activities Business-type Activities Total
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 recognition of ARPA funds and lost revenue.
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
19
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:
2023 2024 2023 2024 2023 2024
Revenue
Program revenue
Charges for services 16,993,355$ 24,116,838$ 52,102,949$ 54,847,143$ 69,096,304$ 78,963,981$
Operating grants and contributions 70,476,683 59,174,797 - - 70,476,683 59,174,797
Capital grants and contributions 1,490,181 7,674,594 5,000,000 - 6,490,181 7,674,594
General revenue
Taxes 88,404,216 107,768,728 - - 88,404,216 107,768,728
State shared revenues - unrestricted 17,994,492 18,441,141 - - 17,994,492 18,441,141
Other 32,452,603 41,658,523 1,355,841 5,009,248 33,808,444 46,667,771
Total revenue 227,811,530 258,834,621 58,458,790 59,856,391 286,270,320 318,691,012
Expenses
General government 20,719,165 21,814,859 - - 20,719,165 21,814,859
Judicial 4,437,374 7,054,673 - - 4,437,374 7,054,673
Health and welfare 6,658,603 1,938,213 - - 6,658,603 1,938,213
Public safety 88,377,091 57,755,851 - - 88,377,091 57,755,851
Public works 16,436,242 34,560,876 - - 16,436,242 34,560,876
Recreation and culture 13,784,687 10,664,726 - - 13,784,687 10,664,726
Community and economic development 18,257,010 15,909,940 - - 18,257,010 15,909,940
Interest on long-term debt 2,993,891 9,387,497 - - 2,993,891 9,387,497
Sewage disposal system - - 30,964,460 27,098,938 30,964,460 27,098,938
Municipal parking system - - 6,717,635 8,016,197 6,717,635 8,016,197
Cemetery - - 703,931 265,303 703,931 265,303
Golf - - 165,530 165,498 165,530 165,498
Garbage and rubbish collection - - 2,425,495 4,170,087 2,425,495 4,170,087 Recycling - - 4,005,120 2,636,909 4,005,120 2,636,909
Total expenses 171,664,063 159,086,635 44,982,171 42,352,932 216,646,234 201,439,567
Change in net position before transfers 56,147,467 99,747,986 13,476,619 17,503,459 69,624,086 117,251,445
Transfers (out) in (743,251) (223,750) 743,251 223,750 - -
Change in net position 55,404,216 99,524,236 14,219,870 17,727,209 69,624,086 117,251,445
Net position - beginning of year (391,451,470) (336,047,254) 256,083,486 270,303,356 (135,367,984) (65,743,898)
Net position - end of year (336,047,254)$ (236,523,018)$ 270,303,356$ 288,030,565$ (65,743,898)$ 51,507,547$
Governmental Activities Business-type Activities Total
Governmental Activities. The following chart depicts revenues of the governmental activities for the fiscal year:
Charges for services
10%
Operating grants and
contributions
23%
Capital grants and
contributions
3%
Income taxes
17%
Property taxes
24%
State shared revenues -
unrestricted
7%
Other
16%
Revenues - Governmental Activities
Fiscal Year Ending June 30, 2024
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
20
In total, governmental activity revenues increased $31,023,091 from FY 2023 to FY 2024, with trends of the
major revenue categories as follows:
General revenue taxes comprised the largest portion of governmental revenues of $107,768,728, or 41.6%
of governmental activity revenue for fiscal year 2024, a $19,364,512, or 22% increase from fiscal year 2023.
Property taxes revenue was 25.4% of governmental revenues, or $65,740,941, which is an increase from the
prior year due to additional debt service millage for public safety and increase in tax base.
Income taxes comprised 16.3%, or $42,027,787, of governmental activity revenue, the full amount of which
is revenue to the General Fund. This represents a $1,070,776, or 2.6%, increase from fiscal year 2023. 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 18.7%, or
$47,725,948, of revenues, a $509,298, or 1% increase from fiscal year 2023. Approximately 38.6% of this
category, $18,441,141, 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 $7,123,483 from FY 2023 to FY 2024.
Governmental Activities. The following chart depicts expenses of the governmental activities for the fiscal year:
General government
14%
Public safety
36%
Judicial
4%
Health and welfare
1%
Public works
22%
Recreation and culture
7%
Community and
economic development
10%
Interest on long-term debt
6%
Expenses - Governmental Activities
Fiscal Year Ending June 30, 2024
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
21
Total expenses for governmental activities decreased $12,577,428, 7.3%, from FY 2023 to FY 2024, with trends
of the major expense categories as follows:
The largest component of governmental activities was public safety, accounting for 36.3%, or $57,755,851,
a 34.65% ($30,621,240) increase from FY 2023, largely resulting from a decrease in postemployment and
pension liabilities and the resulting impact to long-term liabilities.
Public works comprises the second largest component of governmental activity expenses, at 21.7%, or
$34,560,876, a 110% ($18,124,634) increase from FY 2023, due to increased repair and maintenance related
needs as well as increases due to inflation.
General government comprises the next largest component of governmental activity expenses, at 13.7%, or
$21,814,859, a 5.3% (1,095,694) increase from FY 2023, due to normal increases in expenses.
Business-type Activities. Net position of the business-type activities increased by $17,727,209 from FY 2023
to $288,030,565. This increase was largely attributable to ARPA funding and pension/OPEB adjustments.
Financial Analysis of the City’s Funds
As the City completed the fiscal year, its governmental funds reported combined ending fund balances of
$292,662,911, a $46,132,156 increase from fiscal year 2023. Of the $292,662,911 fiscal year 2024 combined
ending fund balance, $4,550,616 is unavailable to spend (i.e., amounts tied up in inventories, prepaids, and
endowments), $248,871,460 is legally restricted, and $10,699,564 is committed for designated projects and
pension/OPEB, assigned for subsequent year’s expenditures of $175,000, leaving $31,366,271 unassigned.
The unassigned fund balance for the General Fund was $31,366,271, an increase of $10,449,028 from FY 2023,
which is further described in the General Fund Budgetary Highlights section. Increase is due to recognition of
intergovernmental grants such as ARPA in the current year.
Public safety capital projects total fund balance increased $1,546,527 from $171,157,405 to $172,703,932. The
increase in the current year is due to an increase in interest earnings with higher treasury rates.
Sewage Disposal System Fund
Net position increased $15,593,930 to $287,755,851 in FY 2024. Unrestricted net position increased $6,704,152,
from $37,403,355 to $44,107,507.
Municipal Parking System Fund
Net position decreased $133,728 to $3,559,222. Unrestricted net position increased $896,303, from $9,976,286
to $10,872,589. The system saw an increase in charges for service but a decrease in intergovernmental from
grant in the previous year.
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
22
General Fund Budgetary Highlights
The FY 2024 General Fund budget was adopted as a balanced budget with an addition to fund balance. During
the course of the fiscal year, the General Fund revenue budget was amended from $153,111,470 to
$157,796,470.
General Fund reserves combined with the Budget Stabilization Fund (combined for financial statement
purposes) increased $10,990,348 from FY 2023 to $40,651,846. Unassigned fund balance increased
$10,449,028, or 49.9% from fiscal year 2023. The City benefited from state and federal grants received in
previous years and recognized in the current year.
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 2024, the City had invested $602,592,886, net of accumulated
depreciation/amortization, in a broad range of capital assets (see the table below). Additional information
regarding the City's capital assets can be found in Footnote 6 of the Notes to the Financial Statements section of
the ACFR.
2023 2024 2023 2024 2023 2024
Land 27,743,613$ 27,743,613$ 12,369,507$ 12,369,507$ 40,113,120$ 40,113,120$
Land improvements 13,174,333 12,720,922 1,791,282 15,536,701 14,965,615 28,257,623
Buildings and improvements 30,812,099 27,499,574 65,957,958 47,357,071 96,770,057 74,856,645
Equipment 8,566,556 15,397,852 2,923,717 12,579,644 11,490,273 27,977,496
Flowage rights 30,322,259 29,263,744 - - 30,322,259 29,263,744
Right to use - SBITA 4,509,347 3,385,281 - - 4,509,347 3,385,281
Infrastructure 108,258,080 108,196,972 230,024,679 247,979,397 338,282,759 356,176,369
Construction in progress 14,907,692 29,866,714 36,024,876 12,695,894 50,932,568 42,562,608
Total 238,293,979$ 254,074,672$ 349,092,019$ 348,518,214$ 587,385,998$ 602,592,886$
Governmental Activities Business-type Activities Total
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.
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
23
2023 2024
Governmental activities
General obligation bonds 214,543,986$ 230,753,750$
Deferred amounts
For issuance premiums 11,526,235 11,479,613
Installment purchase contracts 21,048,000 19,612,000
Loans 6,092,706 5,279,173
SBITA 4,524,170 3,448,537
Compensated absences 11,188,764 11,075,958
Workers compensation 2,989,432 3,153,293
Total governmental activities 271,913,293 284,802,324
Business-type activities
General obligation bonds 115,004,650 108,093,995
Deferred amounts
For issuance discounts (79,651) (19,566)
For issuance premiums 1,972,584 1,802,067
Revenue bonds 7,875,000 6,300,000
Compensated absences 885,955 912,716
Total business-type activities 125,658,538 117,089,212
Total outstanding obligations 397,571,831$ 401,891,536$
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.
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.
CITY OF LANSING
MANAGEMENT’S DISCUSSION AND ANALYSIS
24
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.
25
BASIC FINANCIAL STATEMENTS
26
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF LANSING
STATEMENT OF NET POSITION
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements. CONTINUED
27
Primary Government
Governmental
Activities
Business-type
Activities Total
Component
Units
ASSETS
Current assets
Cash and cash equivalents 30,675,525$ 5,781,643$ 36,457,168$ 22,346,558$
Equity in pooled cash and investments 67,809,549 36,276,617 104,086,166 497,970
Cash and cash equivalents, restricted 206,857,644 2,555,433 209,413,077 3,856,930
Investments 1,846,087 - 1,846,087 -
Current portion of receivables, net 29,443,561 8,719,067 38,162,628 2,210,030
Due from other governmental units 28,200,218 27,992,095 56,192,313 1,726,390
Internal balances (3,543,795) 3,543,795 - -
Inventories 2,121,184 1,531,706 3,652,890 86,187
Prepaids 2,535,441 - 2,535,441 9,523
Total current assets 365,945,414 86,400,356 452,345,770 30,733,588
Noncurrent assets
Noncurrent portion of receivables, net 20,076,243 13,708,354 33,784,597 37,919
Capital assets not being depreciated/amortized 57,610,327 25,065,401 82,675,728 -
Capital assets, net of accumulated depreciation/amortization 196,464,345 323,452,813 519,917,158 2,246,864
Total noncurrent assets 274,150,915 362,226,568 636,377,483 2,284,783
TOTAL ASSETS 640,096,329 448,626,924 1,088,723,253 33,018,371
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 190,477 3,356,682 3,547,159 -
Deferred outflows of resources related to pensions 24,764,049 1,039,440 25,803,489 -
Deferred outflows of resources related to OPEB 1,028,672 10,668 1,039,340 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 25,983,198 4,406,790 30,389,988 -
LIABILITIES
Current liabilities
Accounts payable 20,179,607 6,387,960 26,567,567 5,050,449
Accrued payroll 2,804,224 99,657 2,903,881 -
Deposits payable - 87,401 87,401 -
Due to other governmental units 2,408,623 1,679,960 4,088,583 46,430
Claims incurred but not reported 1,500,590 - 1,500,590 -
Indemnity bonds 43,867 - 43,867 -
Other accrued liabilities 2,807,670 - 2,807,670 504,222
Accrued interest payable 1,323,137 580,900 1,904,037 503,204
Unearned revenue 24,667,110 - 24,667,110 2,122,051
Current portion of compensated absences 1,647,472 66,562 1,714,034 -
Current portion of long-term obligations 6,696,058 11,100,938 17,796,996 2,755,232
Total current liabilities 64,078,358 20,003,378 84,081,736 10,981,588
CITY OF LANSING
STATEMENT OF NET POSITION (concluded)
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
28
Primary Government
Governmental
Activities
Business-type
Activities Total
Component
Units LIABILITIES (concluded)
Noncurrent liabilities
Noncurrent portion of compensated absences 9,428,486$ 846,154$ 10,274,640$ -$
Noncurrent portion of long-term obligations 267,030,308 105,075,558 372,105,866 75,593,647
Accrued interest payable, net of current portion - - - 32,778
Net pension liability 351,063,014 26,972,060 378,035,074 -
Net other post-employment benefits liability 198,498,721 10,740,955 209,239,676 -
Total noncurrent liabilities 826,020,529 143,634,727 969,655,256 75,626,425
TOTAL LIABILITIES 890,098,887 163,638,105 1,053,736,992 86,608,013
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases 404,343 - 404,343 -
Deferred gain on refunding - - - 907,988
Deferred inflows of resources related to pensions 566,770 128,375 695,145 -
Deferred inflows of resources related to OPEB 11,532,545 1,236,669 12,769,214 -
TOTAL DEFERRED INFLOWS OF RESOURCES 12,503,658 1,365,044 13,868,702 907,988
NET POSITION (DEFICIT)
Net investment in capital assets 176,420,751 235,698,400 412,119,151 1,976,542
Restricted
Public safety 2,540,901 - 2,540,901 -
Public works 31,298,938 - 31,298,938 -
Building department 4,008,847 - 4,008,847 -
Debt service 10,553,503 2,555,433 13,108,936 -
Redevelopment projects - - - 2,146,294
Capital projects - - - 80,000
Stabilization arrangements 7,792,610 - 7,792,610 -
Endowments (nonexpendable) 2,053,956 - 2,053,956 -
Unrestricted (471,192,524) 49,776,732 (421,415,792) (58,700,466)
TOTAL NET POSITION (DEFICIT) (236,523,018)$ 288,030,565$ 51,507,547$ (54,497,630)$
CITY OF LANSING
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
29
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Component
Units
Primary governmentGovernmental activitiesGeneral government 21,814,859$ 23,247,155$ 56,437,892$ -$ 57,870,188$ -$ 57,870,188$ -$
Judicial 7,054,673 - - - (7,054,673) - (7,054,673) - Health and welfare 1,938,213 - - - (1,938,213) - (1,938,213) -
Public safety 57,755,851 188,724 973,014 - (56,594,113) - (56,594,113) - Public works 34,560,876 680,959 1,586,450 6,674,594 (25,618,873) - (25,618,873) -
Recreation and culture 10,664,726 - 96,605 1,000,000 (9,568,121) - (9,568,121) - Community and economic development 15,909,940 - 80,836 - (15,829,104) - (15,829,104) - Interest on long-term obligations 9,387,497 - - - (9,387,497) - (9,387,497) -
Total governmental activities 159,086,635 24,116,838 59,174,797 7,674,594 (68,120,406) - (68,120,406) -
Business-type activitiesSewage disposal system 27,098,938 39,752,999 - - - 12,654,061 12,654,061 -
Municipal parking system 8,016,197 5,731,892 - - - (2,284,305) (2,284,305) - Cemetery 265,303 386,335 - - - 121,032 121,032 -
Golf 165,498 - - - - (165,498) (165,498) - Garbage and rubbish collection 4,170,087 4,201,763 - - - 31,676 31,676 - Recycling 2,636,909 4,774,154 - - - 2,137,245 2,137,245 -
Total business-type activities 42,352,932 54,847,143 - - - 12,494,211 12,494,211 -
Total primary government 201,439,567$ 78,963,981$ 59,174,797$ 7,674,594$ (68,120,406) 12,494,211 (55,626,195) -
Component units
Brownfield Redevelopment Authority 12,337,460$ 15,000$ 4,941$ -$ - - - (12,317,519) Tax Increment Finance Authority 1,662,993 - - - - - - (1,662,993)
Saginaw Street Corridor Improvement Authority 1,234 - - - - - - (1,234) Michigan Avenue Corridor Improvement Authority 3,981 - - - - - - (3,981) Public Media Authority 22,772 - 22,772 - - - - -
Lansing Entertainment & Public Facilities Authority 9,727,637 7,394,183 2,073,414 1,981,186 - - - 1,721,146
Total component units 23,756,077$ 7,409,183$ 2,101,127$ 1,981,186$ - - - (12,264,581)
General revenuesProperty taxes 65,740,941 - 65,740,941 17,897,104
Income taxes 42,027,787 - 42,027,787 - Unrestricted state shared revenues 18,441,141 - 18,441,141 -
Grants and contributions notrestricted to specific programs 29,284,807 - 29,284,807 - Investment earnings 10,901,323 4,980,460 15,881,783 355,952
Miscellaneous 1,472,393 28,788 1,501,181 942,234 Transfers (223,750) 223,750 - -
Total general revenues and transfers 167,644,642 5,232,998 172,877,640 19,195,290
Change in net position 99,524,236 17,727,209 117,251,445 6,930,709
Net position (deficit), beginning of the year (336,047,254) 270,303,356 (65,743,898) (61,428,339)
Net position (deficit), end of the year (236,523,018)$ 288,030,565$ 51,507,547$ (54,497,630)$
Net (Expense) Revenue and Changes in Net Position
Primary Government
30
FUND FINANCIAL STATEMENTS
CITY OF LANSING
GOVERNMENTAL FUND FINANCIAL STATEMENTS
31
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.
Public Safety Capital Projects Fund - This fund accounts for capital project and debt service activity for the Public
Safety.
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.
CITY OF LANSING
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
32
General
State and
Federal Grants -
Special Revenue
Public Safety
Capital Projects
Nonmajor
Governmental
Funds Total
ASSETS
Cash and cash equivalents 16,937,271$ 11,916,216$ -$ 1,822,038$ 30,675,525$
Cash and cash equivalents - restricted 3,132,061 - 172,698,171 31,027,412 206,857,644
Equity in pooled cash and investments 6,517,404 - 1,011 44,590,078 51,108,493
Investments - - - 1,846,087 1,846,087
Receivables
Accounts, net 29,360,751 - 4,750 4,827,796 34,193,297
Taxes receivable, net 1,147,791 - - - 1,147,791
Special assessments - - - 9,610,828 9,610,828
Loans - 30,000 - 1,185,000 1,215,000
Leases 401,310 - - - 401,310
Accrued interest - - - 2,468,696 2,468,696
Due from other funds - - - 1,931,186 1,931,186
Due from other governmental units 6,754,253 13,444,340 - 8,001,625 28,200,218
Inventories - - - 1,461,219 1,461,219
Prepaids 1,035,441 - - - 1,035,441
TOTAL ASSETS 65,286,282$ 25,390,556$ 172,703,932$ 108,771,965$ 372,152,735$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts payable 11,961,631$ 2,059,765$ -$ 3,489,855$ 17,511,251$
Accrued payroll 2,467,285 20,899 - 53,360 2,541,544
Due to other governmental units 2,308,685 6,174 - 93,764 2,408,623
Indemnity bonds - - - 43,867 43,867
Other liabilities 2,775,232 - - 32,438 2,807,670
Due to other funds - - - 1,931,186 1,931,186
Unearned revenue 380,924 23,265,992 - 1,020,194 24,667,110
TOTAL LIABILITIES 19,893,757 25,352,830 - 6,664,664 51,911,251
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - fees 4,331,845 - - - 4,331,845
Unavailable revenue - leases 404,343 - - - 404,343
Unavailable revenue - contracts 4,491 - - - 4,491
Unavailable revenue - loans and accrued interest receivable - 37,726 - 10,556,219 10,593,945
Unavailable revenue - special assessments - - - 9,243,949 9,243,949
TOTAL DEFERRED INFLOWS OF RESOURCES 4,740,679 37,726 - 19,800,168 24,578,573
FUND BALANCES
Nonspendable 1,035,441 - - 3,515,175 4,550,616
Restricted 7,792,610 - 172,703,932 68,374,918 248,871,460
Committed 282,524 - - 10,417,040 10,699,564
Assigned 175,000 - - - 175,000
Unassigned 31,366,271 - - - 31,366,271
TOTAL FUND BALANCES 40,651,846 - 172,703,932 82,307,133 295,662,911
TOTAL LIABILITIES, DEFERRED INFLOWSOF RESOURCES, AND FUND BALANCES 65,286,282$ 25,390,556$ 172,703,932$ 108,771,965$ 372,152,735$
CITY OF LANSING
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
33
Fund balances - total governmental funds 295,662,911$
The cost of capital assets is 673,604,245$
Accumulated depreciation/amortization is (419,529,573)
Capital assets accounted for in the internal service funds, net (15,265,534)
Capital assets, net 238,809,138
Deferred ambulance fees receivable 1,857,905
Deferred nuisance fees receivable 1,347,290
Deferred loans receivable 5,855,009
Deferred long-term interest receivable 2,468,697
Deferred long-term special assessments receivable 9,243,949
Deferred contract receivable 1,131,141
Deferred opioid settlement 2,270,239
Deferred outflows of resources related to pensions 24,764,049
Deferred outflows of resources related to OPEB 1,028,672
Deferred inflows of resources related to pensions (566,770)
Deferred inflows of resources related to OPEB (11,532,545)
37,867,636
Net position of governmental activities accounted for
in governmental activities internal service funds 21,284,442
Bonds and loans payable (266,219,712)
Deferred charges on refunding 190,477
Compensated absences (10,082,912)
Workers compensation (3,153,293)
Accrued interest payable (1,319,970)
Net pension liability (351,063,014)
Net other post-employment benefits liability (198,498,721)
(830,147,145)
Net position of governmental activities (236,523,018)$
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:
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.
Some assets are not current financial resources and therefore are not reported in the
Governmental Funds Balance Sheet.
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.
CITY OF LANSING
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
34
General
State and
Federal Grants -
Special Revenue
Public Safety
Capital Projects
Nonmajor
Governmental
Funds Total
REVENUES
Property taxes and special assessments 56,921,024$ -$ -$ 12,272,942$ 69,193,966$
Income taxes 42,184,295 - - - 42,184,295
Licenses and permits 1,871,789 - - - 1,871,789
Intergovernmental 25,096,790 30,719,070 - 31,795,552 87,611,412
Charges for services 11,227,405 - - 5,407,245 16,634,650
Fines and forfeits 1,605,604 - - 167,950 1,773,554
Interest and rents 1,137,928 1,716,319 6,235,762 2,463,763 11,553,772
Other 26,784,106 79,803 - 442,770 27,306,679
TOTAL REVENUES 166,828,941 32,515,192 6,235,762 52,550,222 258,130,117
EXPENDITURES
Current
General government 18,950,244 3,052,717 - 2,963,720 24,966,681
Public safety 95,867,689 4,753,221 - 3,552,393 104,173,303
Public works 9,663,037 9,044,068 - - 18,707,105
Judicial 8,644,768 - - - 8,644,768
Health and welfare 1,836,148 357,298 - - 2,193,446
Highways and streets - - - 11,649,145 11,649,145
Recreation and culture 8,832,477 200,000 - - 9,032,477
Community and economic development 9,911,517 7,099,037 - 2,188,032 19,198,586
Debt service
Principal 1,436,000 - - 4,472,306 5,908,306
Interest and fiscal charges 409,302 - - 9,602,656 10,011,958
Capital outlay - - 4,689,235 13,394,395 18,083,630
TOTAL EXPENDITURES 155,551,182 24,506,341 4,689,235 47,822,647 232,569,405
EXCESS OF REVENUES OVER
EXPENDITURES 11,277,759 8,008,851 1,546,527 4,727,575 25,560,712
OTHER FINANCING SOURCES (USES)
Issuance of debt - - - 20,000,000 20,000,000
Bond premium - - - 571,444 571,444
Transfers in 8,636,220 278,649 - 12,678,326 21,593,195
Transfers out (8,923,630) (8,287,500) - (4,382,065) (21,593,195)
TOTAL OTHER FINANCING
SOURCES (USES) (287,410) (8,008,851) - 28,867,705 20,571,444
NET CHANGE IN FUND BALANCES 10,990,349 - 1,546,527 33,595,280 46,132,156
Fund balances, beginning of year 29,661,497 - 171,157,405 48,711,853 249,530,755
Fund balances, end of year 40,651,846$ -$ 172,703,932$ 82,307,133$ 295,662,911$
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, 2024
The accompanying notes are an integral part of the financial statements.
35
Net change in fund balances - total governmental funds 46,132,156$
Capital outlay 27,461,222$
Depreciation/amortization expense (12,343,091)
Excess of capital outlay over depreciation/amortization expense 15,118,131
Change in deferred ambulance fees receivable 188,724
Change in deferred nuisance fees receivable 305,447
Change in deferred opioid settlement 1,039,296
Change in deferred contract receivable (269,226)
Change in deferred long-term interest receivable 59,251
Change in deferred special assessments receivable (618,988)
704,504
Change in net position of governmental activities internal service funds (8,107,918)
Amortization of premium on bond issuance 618,066
Deferred charges on refunding (19,202)
Premium on issuance of debt (571,444)
Issuance of debt (20,000,000)
Debt principal retirement 5,908,306
(14,064,274)
Change in estimated workers compensation (163,861)
Decrease in net pension liability 20,538,038
Decrease in net OPEB liability 19,592,352
(Decrease) in deferred outflows of resources related to pensions (30,073,991)
(Decrease) in deferred outflows of resources related to OPEB (203,320)
Decrease in deferred inflows of resources related to pensions 2,508,284
Decrease in deferred inflows of resources related to OPEB 47,582,469
(Increase) in accrued interest payable (147,628)
Decrease in compensated absences 109,294
59,905,498
Change in net position of governmental activities 99,524,236$
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/
amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization
expense in the current period.
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:
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:
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds.
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.
Certain expenditures are reported in governmental funds that reduce long-term liabilities for purpose of
the statement of net position.
CITY OF LANSING
PROPRIETARY FUND FINANCIAL STATEMENTS
36
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.
CITY OF LANSING
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
37
GovernmentalActivities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Fund
ASSETSCurrent assetsCash and cash equivalents -$ 5,781,443$ 200$ 5,781,643$ -$ Cash and cash equivalents - restricted 2,555,433 - - 2,555,433 -
Equity in pooled cash and investments 27,285,824 2,784,404 6,206,389 36,276,617 16,701,056 Receivables, netCustomers 6,281,412 410,971 447,421 7,139,804 482,882 Interest 28,686 131,934 - 160,620 - Contracts 651,133 767,510 - 1,418,643 -
Due from other funds 3,543,795 - - 3,543,795 -
Due from other governmental units 27,992,095 - - 27,992,095 -
Inventories 1,479,185 - 52,521 1,531,706 659,965 Prepaids - - - - 1,500,000
Total current assets 69,817,563 9,876,262 6,706,531 86,400,356 19,343,903
Noncurrent assets
Contract receivable, net of current portion 2,717,631 10,990,723 - 13,708,354 -
Capital assets not being depreciated/amortized 13,116,643 11,545,371 403,387 25,065,401 92,892
Capital assets, net of accumulated depreciation/amortization 316,899,473 5,037,871 1,515,469 323,452,813 15,172,642
Total noncurrent assets 332,733,747 27,573,965 1,918,856 362,226,568 15,265,534
TOTAL ASSETS 402,551,310 37,450,227 8,625,387 448,626,924 34,609,437
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refunding 588,291 2,768,391 - 3,356,682 - Deferred outflows of resources related to pensions 565,901 176,642 296,897 1,039,440 - Deferred outflows of resources related to OPEB 5,808 1,813 3,047 10,668 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,160,000 2,946,846 299,944 4,406,790 -
LIABILITIES
Current liabilities
Accounts payable 5,467,079 82,007 838,874 6,387,960 2,668,356 Accrued payroll 66,086 32,075 1,496 99,657 262,680 Deposit payable - 87,401 - 87,401 - Claims incurred but not reported - - - - 1,500,590
Accrued interest payable 351,064 229,836 - 580,900 3,167
Due to other funds - - - - 3,543,795
Due to other governmental units - 1,679,960 - 1,679,960 -
Current portion of compensated absences 61,831 72 4,659 66,562 79,268 Current portion of long-term obligations 11,000,938 100,000 - 11,100,938 1,228,865
Total current liabilities 16,946,998 2,211,351 845,029 20,003,378 9,286,721
Noncurrent liabilities
Compensated absences, net of current portion 485,440 157,810 202,904 846,154 913,778
Bonds and notes payable, net of current portion 77,247,769 27,827,789 - 105,075,558 3,124,496
Net pension liability 14,684,388 4,583,615 7,704,057 26,972,060 - Net other post-employment benefits liability 5,847,694 1,825,311 3,067,950 10,740,955 -
Total noncurrent liabilities 98,265,291 34,394,525 10,974,911 143,634,727 4,038,274
TOTAL LIABILITIES 115,212,289 36,605,876 11,819,940 163,638,105 13,324,995
DEFERRED INFLOWS OF RESOURCESDeferred inflows of resources related to pensions 69,891 21,816 36,668 128,375 - Deferred inflows of resources related to OPEB 673,279 210,159 353,231 1,236,669 -
TOTAL DEFERRED INFLOWS OF RESOURCES 743,170 231,975 389,899 1,365,044 -
NET POSITION (DEFICIT)
Net investment in capital assets 241,092,911 (7,313,367) 1,918,856 235,698,400 10,912,173
Restricted for bond reserves 2,555,433 - - 2,555,433 - Unrestricted 44,107,507 10,872,589 (5,203,364) 49,776,732 10,372,269
TOTAL NET POSITION (DEFICIT) 287,755,851$ 3,559,222$ (3,284,508)$ 288,030,565$ 21,284,442$
Business-type Activities - Enterprise Funds
CITY OF LANSING
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
38
Governmental
Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
OPERATING REVENUES
Charges for services 39,752,999$ 5,731,892$ 9,362,252$ 54,847,143$ 96,734,704$
Other - 28,788 - 28,788 162,976
TOTAL OPERATING REVENUES 39,752,999 5,760,680 9,362,252 54,875,931 96,897,680
OPERATING EXPENSES
Personnel services 4,206,437 1,524,455 1,980,635 7,711,527 9,588,374
Purchase of goods and services 9,464,472 1,754,509 5,185,226 16,404,207 92,096,495 Other services and charges 96,241 336,759 - 433,000 -
Depreciation/amortization 11,284,367 2,006,045 71,936 13,362,348 3,342,692
TOTAL OPERATING EXPENSES 25,051,517 5,621,768 7,237,797 37,911,082 105,027,561
OPERATING INCOME (LOSS) 14,701,482 138,912 2,124,455 16,964,849 (8,129,881)
NONOPERATING REVENUES (EXPENSES)
Interest income 2,939,869 1,898,039 142,552 4,980,460 130,154
Gain on sale of capital assets - - - - 172,718
Interest expense and fees (2,047,421) (2,394,429) - (4,441,850) (57,159)
TOTAL NONOPERATING
REVENUES (EXPENSES) 892,448 (496,390) 142,552 538,610 245,713
NET INCOME (LOSS)
BEFORE TRANSFERS 15,593,930 (357,478) 2,267,007 17,503,459 (7,884,168)
TRANSFERS IN - 223,750 - 223,750 -
TRANSFERS OUT - - - - (223,750)
TOTAL TRANSFERS - 223,750 - 223,750 (223,750)
CHANGE IN NET POSITION 15,593,930 (133,728) 2,267,007 17,727,209 (8,107,918)
Net position (deficit), beginning of year 272,161,921 3,692,950 (5,551,515) 270,303,356 29,392,360
Net position (deficit), end of year 287,755,851$ 3,559,222$ (3,284,508)$ 288,030,565$ 21,284,442$
Business-type Activities - Enterprise Funds
CITY OF LANSING
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements. CONTINUED
39
Governmental
Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 40,958,643$ 5,439,371$ 8,914,934$ 55,312,948$ -$
Cash received (paid) from interfund services (3,543,795) - - (3,543,795) 100,899,597
Cash received (paid) for intergovernmental services (13,940,990) 1,679,960 - (12,261,030) -
Cash payments for goods and services (10,572,721) (2,062,942) (4,986,696) (17,622,359) (91,715,077)
Cash payments to employees (6,693,439) (2,000,570) (3,773,370) (12,467,379) (10,392,680)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 6,207,698 3,055,819 154,868 9,418,385 (1,208,160)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (12,760,543) (28,000) - (12,788,543) (4,158,534)
Proceeds from sale of capital assets - - - - 325,998
Principal paid on long-term obligations (10,981,881) (1,130,653) - (12,112,534) (1,207,096)
Interest and costs paid on long-term obligations (2,035,591) (2,928,491) - (4,964,082) (57,619)
Transfers in/(out) - 223,750 - 223,750 (223,750)
Proceeds from debt issuance 3,626,879 - - 3,626,879 -
Payments received on contract receivable 31,099 1,078,023 - 1,109,122 -
NET CASH (PROVIDED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES (22,120,037) (2,785,371) - (24,905,408) (5,321,001)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (loss) 2,939,869 1,901,044 142,552 4,983,465 130,154
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (12,972,470) 2,171,492 297,420 (10,503,558) (6,399,007)
Cash and cash equivalents, beginning of year 42,813,727 6,394,355 5,909,169 55,117,251 23,100,063
Cash and cash equivalents, end of year 29,841,257$ 8,565,847$ 6,206,589$ 44,613,693$ 16,701,056$
Reconciliation to Statement of Net Position
Cash and cash equivalents -$ 5,781,443$ 200$ 5,781,643$ -$
Cash and cash equivalents - restricted 2,555,433 - - 2,555,433 -
Equity in pooled cash and investments 27,285,824 2,784,404 6,206,389 36,276,617 16,701,056
Total cash and cash equivalents, end of year 29,841,257$ 8,565,847$ 6,206,589$ 44,613,693$ 16,701,056$
Business-type Activities - Enterprise Funds
CITY OF LANSING
STATEMENT OF CASH FLOWS (concluded)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
40
Governmental
Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss) 14,701,482$ 138,912$ 2,124,455$ 16,964,849$ (8,129,881)$
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities
Depreciation/amortization 11,284,367 2,006,045 71,936 13,362,348 3,342,692
(Increase) decrease in:
Accounts receivable 1,205,644 (321,309) (447,318) 437,017 (477,703)
Due from other funds (3,543,795) - - (3,543,795) -
Due from other governmental units (13,940,990) - - (13,940,990) -
Inventories (829,926) - (2,241) (832,167) (129,364)
Prepaids - - - - 7,156
Deferred outflows of resources related to pensions 843,969 247,392 471,437 1,562,798 -
Deferred outflows of resources related to OPEB 149,014 44,751 81,326 275,091 -
Increase (decrease) in:
Accounts payable (182,082) 26,302 200,771 44,991 503,458
Due to other funds - - - - 3,543,795
Accrued liabilities (6,383) 5,511 (3,581) (4,453) 14,609
Due to other governmental units - 1,679,960 - 1,679,960 -
Deposits payable - 2,024 - 2,024 -
Compensated absences 7,808 31,165 (12,212) 26,761 (3,512)
Claims incurred but not reported - - - - 120,590
Net pension liability (2,055,089) (450,964) (1,418,437) (3,924,490) -
Net other post-employment benefits liability (1,875,561) (497,542) (1,140,984) (3,514,087) -
Deferred inflows of resources related to pensions (224,039) (66,587) (123,515) (414,141) -
Deferred inflows of resources related to OPEB 673,279 210,159 353,231 1,236,669 -
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 6,207,698$ 3,055,819$ 154,868$ 9,418,385$ (1,208,160)$
Business-type Activities - Enterprise Funds
CITY OF LANSING
FIDUCIARY FUND FINANCIAL STATEMENTS
The accompanying notes are an integral part of the financial statements.
41
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.
CITY OF LANSING
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
42
Pension and
Other Post-
Employment
Benefits Trust
Custodial
Funds
ASSETS
Cash and cash equivalents 9,992,035$ -$
Equity in pooled cash and investments - 127,435
Investments
Mutual funds 434,368,686 -
Domestic equities 154,606,419 -
International equities 3,343,663 -
Emerging market equities 30,762,629 -
Money market funds 25,025,357 -
Receivables
Interest and dividends 293,597 -
TOTAL ASSETS 658,392,386 127,435
LIABILITIES
Accounts payable 433,826 -
Due to other governmental units 27,992,095 -
Due to individuals and agencies - 127,435
TOTAL LIABILITIES 28,425,921 127,435
NET POSITION RESTRICTED FOR:
Pension benefits 477,984,521 -
Other postemployment benefits 151,981,944 -
TOTAL NET POSITION 629,966,465$ -$
CITY OF LANSING
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
43
Pension and
Other Post-
Employment
Benefits Trust
Custodial
Funds
ADDITIONS TO NET POSITION
Investment income
Change in fair value of investments 61,278,114$ -$
Interest income 1,605,149 -
Investment expense (1,983,490) -
Net investment income 60,899,773 -
Contributions
Employer 61,675,828 -
Nonemployer 11,551,892 -
Plan members 5,210,271 -
Total contributions 78,437,991 -
Other additions
Collections from or on behalf of individuals - 588,434
Collections of taxes for other governments - 137,494,653
Total other additions - 138,083,087
TOTAL ADDITIONS 139,337,764 138,083,087
DEDUCTIONS FROM NET POSITION
Payments to or on behalf of individuals - 588,434
Payment of taxes collected for other governments - 137,494,653
Participant benefits 85,306,627 -
Administrative expenses 1,029,475 -
TOTAL DEDUCTIONS 86,336,102 138,083,087
CHANGE IN NET POSITION 53,001,662 -
Net position, beginning of year 576,964,803 -
Net position, end of year 629,966,465$ -$
44
COMPONENT UNITS
CITY OF LANSING
DISCRETELY PRESENTED COMPONENT UNITS
45
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 seven discretely presented component units:
Brownfield Redevelopment Authority
Tax Increment Finance Authority
Saginaw Street Corridor Improvement Authority
Michigan Avenue Corridor Improvement Authority
South MLK Jr. Blvd. Corridor Improvement Authority
Public Media Authority
Lansing Entertainment and Public Facilities Authority
CITY OF LANSING
COMBINING STATEMENT OF NET POSITION
DISCRETELY PRESENTED COMPONENT UNITS
JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
46
Brownfield
Redevelopment
Authority
Tax Increment
Finance
Authority
Saginaw Street
Corridor
Improvement
Authority
Michigan Avenue
Corridor
Improvement
Authority
South MLK Jr.
Blvd. Corridor
Improvement
Authority
Public Media
Authority
Lansing
Entertainment
and Public
Facilities
Authority TotalASSETS
Current assets
Cash and cash equivalents 6,001,355$ 12,500,390$ 12,830$ 77,610$ 1$ 25,775$ 3,728,597$ 22,346,558$
Equity in pooled cash and investments - - 131,418 268,638 75,336 22,578 - 497,970
Cash and cash equivalents - restricted 1,909,530 291,211 - - - - 1,656,189 3,856,930
Receivables, net 45,410 - - - - - 2,164,620 2,210,030 Due from other governmental units - 1,679,960 - - 46,430 - - 1,726,390 Inventories - - - - - - 86,187 86,187 Prepaids - - - - - - 9,523 9,523
Total current assets 7,956,295 14,471,561 144,248 346,248 121,767 48,353 7,645,116 30,733,588
Noncurrent assets
Noncurrent portion of receivable, net 37,919 - - - - - - 37,919
Capital assets, net of accumulated depreciation - - - - - - 2,246,864 2,246,864
Total noncurrent assets 37,919 - - - - - 2,246,864 2,284,783
TOTAL ASSETS 7,994,214 14,471,561 144,248 346,248 121,767 48,353 9,891,980 33,018,371
LIABILITIES
Current liabilities
Accounts payable 3,702,966 - - - - - 1,347,483 5,050,449
Accrued liabilities - - - - - 1,923 502,299 504,222
Current portion of accrued interest payable 398,206 104,998 - - - - - 503,204 Due to other governmental units - - - - - 46,430 - 46,430 Unearned revenue - - - - - - 2,122,051 2,122,051 Current portion of long-term obligations 1,028,839 1,682,510 - - - - 43,883 2,755,232
Total current liabilities 5,130,011 1,787,508 - - - 48,353 4,015,716 10,981,588
Noncurrent liabilities
Noncurrent portion of long-term obligations 37,126,485 38,240,723 - - - - 226,439 75,593,647
Accrued interest payable, net of current portion - 32,778 - - - - - 32,778
Total noncurrent liabilities 37,126,485 38,273,501 - - - - 226,439 75,626,425
TOTAL LIABILITIES 42,256,496 40,061,009 - - - 48,353 4,242,155 86,608,013
DEFERRED INFLOW OF RESOURCES
Deferred gain on refunding - 907,988 - - - - - 907,988
NET POSITION (DEFICIT)Net investment in capital assets - - - - - - 1,976,542 1,976,542 Restricted for capital projects - - - - - - 80,000 80,000 Restricted for redevelopment projects 1,992,859 153,435 - - - - - 2,146,294 Unrestricted (36,255,141) (26,650,871) 144,248 346,248 121,767 - 3,593,283 (58,700,466)
TOTAL NET POSITION (DEFICIT) (34,262,282)$ (26,497,436)$ 144,248$ 346,248$ 121,767$ -$ 5,649,825$ (54,497,630)$
CITY OF LANSING
COMBINING STATEMENT OF ACTIVITIES
DISCRETELY PRESENTED COMPONENT UNITS
YEAR ENDED JUNE 30, 2024
The accompanying notes are an integral part of the financial statements.
47
Brownfield
Redevelopment
Authority
Tax Increment
Finance
Authority
Saginaw Street
Corridor
Improvement
Authority
Michigan Avenue
Corridor
Improvement
Authority
South MLK Jr.
Blvd. Corridor
Improvement
Authority
Public Media
Authority
Lansing
Entertainment
and Public
Facilities
Authority Total
EXPENSES
Community development 12,337,460$ 1,662,993$ 1,234$ 3,981$ -$ -$ -$ 14,005,668$
Recreation and culture - - - - - 22,772 9,727,637 9,750,409
TOTAL EXPENSES 12,337,460 1,662,993 1,234 3,981 - 22,772 9,727,637 23,756,077
PROGRAM REVENUES
Charges for services 15,000 - - - - - 7,394,183 7,409,183
Operating grants and contributions 4,941 - - - - 22,772 2,073,414 2,101,127
Capital grants and contributions - - - - - - 1,981,186 1,981,186
TOTAL PROGRAM REVENUES 19,941 - - - - 22,772 11,448,783 11,491,496
NET PROGRAM (EXPENSE) REVENUE (12,317,519) (1,662,993) (1,234) (3,981) - - 1,721,146 (12,264,581)
GENERAL REVENUES
Property taxes 10,692,066 6,881,202 74,943 127,126 121,767 - - 17,897,104
Unrestricted investment earnings 352,154 3,798 - - - - - 355,952
Other - 154 - - - - 942,080 942,234
TOTAL GENERAL REVENUES 11,044,220 6,885,154 74,943 127,126 121,767 - 942,080 19,195,290
CHANGE IN NET POSITION (1,273,299) 5,222,161 73,709 123,145 121,767 - 2,663,226 6,930,709
Net position (deficit), beginning of year (32,988,983) (31,719,597) 70,539 223,103 - - 2,986,599 (61,428,339)
Net position (deficit), end of year (34,262,282)$ (26,497,436)$ 144,248$ 346,248$ 121,767$ -$ 5,649,825$ (54,497,630)$
48
NOTES TO FINANCIAL STATEMENTS
CITY OF LANSING
INDEX - NOTES TO FINANCIAL STATEMENTS
49
Page
Note 1 - Summary of Significant Accounting Policies .................................................................................................. 50
Note 2 - Budgetary Information ............................................................................................................................................... 63
Note 3 - Deficit Fund Equity ........................................................................................................................................................ 63
Note 4 - Deposits and Investments ......................................................................................................................................... 64
Note 5 - Receivables ........................................................................................................................................................................ 72
Note 6 - Capital Assets .................................................................................................................................................................... 73
Note 7 - Accounts Payable and Accrued Liabilities ....................................................................................................... 75
Note 8 - Interfund Receivables, Payables, and Transfers .......................................................................................... 75
Note 9 - Long-term Obligations................................................................................................................................................. 76
Note 10 - Fund Balances - Governmental Funds ............................................................................................................. 81
Note 11 - Net Investment in Capital Assets ........................................................................................................................ 81
Note 12 - Segment Information - Enterprise Funds ...................................................................................................... 82
Note 13 - Risk Management ........................................................................................................................................................ 82
Note 14 - Property Taxes .............................................................................................................................................................. 83
Note 15 - Contingent Liabilities ................................................................................................................................................ 83
Note 16 - Pension Plans ................................................................................................................................................................. 83
Note 17 - Other Postemployment Benefits ........................................................................................................................ 96
Note 18 - Tax Abatements ........................................................................................................................................................... 113
Note 19 - Assets Held by Foundation .................................................................................................................................... 114
Note 20 - Lease Receivable ......................................................................................................................................................... 114
Note 21 - Upcoming Accounting Pronouncements ....................................................................................................... 115
Note 22 - Subsequent Events ..................................................................................................................................................... 116
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
50
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 Redevelopment Authority (“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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
51
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 multiple projects within the project area.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
52
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.
The South MLK Jr. Blvd. Corridor Improvement Authority (“MLKCIA”) was created in 2019 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 four categories used by the National Main Street Model: design, economic restructuring,
organization, and promotions/marketing. 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 Public Media Authority (“PMA”) was created in 2022. The Authority was established for the purpose
of acquiring, furnishing, equipping, owning, improving, enlarging, operating, and maintaining City
property. PMA 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 PMA, all assets and rights of the Authority
shall revert to the City. PMA’s Board of Commissioners consists of seven 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, MACIA, MLKCIA, and PMA, these discretely presented component units financial statements
are included in the City’s audited financial statements and are not audited separately.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
53
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 is 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.
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 JBA 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 JBA 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
54
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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 inter-
governmental grants and various contributions. These revenues are used for projects as detailed in
individual grant applications.
Public Safety Capital Projects Fund. This fund accounts for capital project and debt service activity for
the Public Safety.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
55
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Additionally, the City reports the following Fund Types:
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other than debt service or capital projects
that comprise or are expected to comprise a substantial portion of the fund's total reported inflows.
Debt Service Funds are used to account for and report financial resources that are restricted, committed,
or assigned to expenditure for principal, interest, and related costs.
Capital Projects Funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
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, 311 program, 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 account 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
56
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (concluded)
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 positions 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.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
57
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity (continued)
Deposits and Investments (concluded)
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/Payables
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.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
58
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity (continued)
Capital Assets
Capital assets, which include property, plant, equipment, flowage rights, right to use, 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. Right to use assets of the City are amortized using the straight-line
method over the shorter of the subscription period or the estimated useful lives.
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. The other 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
Right to use - SBITA 7
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 not other postemployment benefit liabilities, when applicable.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
59
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity (continued)
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.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
60
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity (continued)
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.
Stabilization Arrangement
On May 23, 1994, the Council adopted a resolution to establish and maintain a revenue stabilization reserve
in the general fund.
For any year in which actual general fund revenues exceed actual general fund expenditures (including
encumbrances and reappropriation into the succeeding fiscal year) according to the annual City audit and
reappropriations by Council, Council shall appropriate at least 25% of such excess of revenues over
expenditures to the fund until the fund balance reaches a sum equal to 10% of the net current fiscal year
general fund appropriations. Council, upon recommendation of the Mayor, may make additional
appropriations to the fund from one time or intermittent revenue sources or as provided by policy, except
that such appropriations shall not cause the fund balance to exceed a sum equal to 10% of net current fiscal
year general fund appropriations. Appropriations to the fund shall require approval by vote of two-thirds
of the members elected and serving on Council.
Money in the fund may be appropriated by an ordinance or resolution adopted by a two-thirds vote of the
members elected and serving on Council for the following purposes:
a. To cover a general fund deficit, should the City’s annual audit reveal such a deficit;
b. To prevent a reduction in the level of public services or in the number of employees at any time in
the fiscal year when the City’s budgeted revenue is not being collected in an amount sufficient to
cover budgeted expenses;
c. To prevent a reduction in the level of public services or in the number of employees when, in
preparing the budget for the next fiscal year, the City’s estimated revenue does not appear sufficient
to cover estimated expenses; and
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
61
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity (continued)
Stabilization Arrangement (concluded)
d. To cover expenses arising because of a natural disaster, including flood, fire or tornado, with the
proviso that if Federal or State funds are received to offset the appropriations from the fund, that
such money shall be returned to the fund.
Subscription-based IT Arrangements (SBITA)
Subscriber: The City is a lessee for a noncancelable subscription of an IT arrangement. The City recognizes
a SBITA liability and an intangible right-to-use SBITA asset in the government-wide financial statements.
At the commencement of a subscription, the City initially measures the SBITA liability at the present value of
payments expected to be made during the SBITA term. Subsequently, the SBITA liability is reduced by the
principal portion of SBITA payments made. The SBITA asset is initially measured as the initial amount of the
SBITA liability, adjusted for SBITA payments made at or before the SBITA commencement date, plus certain
initial direct costs. Subsequently, the SBITA asset is amortized on a straight-line basis over its useful life.
Key estimates and judgements related to SBITA’s included how the City determines (1) the discount rate it
uses to discount the expected SBITA payments to present value, (2) SBITA term, and (3) SBITA payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided, the City generally uses its estimated incremental borrowing
rate as the discount rate for SBITA.
The SBITA term includes the noncancelable period of the subscription. SBITA payments included in
the measurement of the SBITA liability are composed of fixed payments and purchase option price
that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its SBITA and will
remeasure the SBITA asset and liability if certain changes occur that are expected to significantly affect the
amount of the SBITA liability. SBITA assets are reported with other capital assets and SBITA liabilities are
reported with long-term obligations on the statement of net position.
Leases
Lessor: The City is a lessor for a noncancelable lease of a building. The City recognizes a lease receivable
and a deferred inflow of resources in the government-wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by
the principal portion of lease payments received. The deferred inflow of resources is initially measured as
the initial amount of the lease receivable, adjusted for lease payment received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life
of the lease term.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
62
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (concluded)
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity (concluded)
Leases (concluded)
Key estimates and judgements include how the City determines (1) the discount rate is used to discount the
expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancelable period of the lease. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of this lease and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected
to significantly affect the amount of the lease receivable.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
63
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.
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 $1,034,885, $1,066,456, and $3,109,784, respectively, primarily as a result of the recognition of
net pension and net other postemployment benefit liabilities in these funds.
The Fringe Benefits Internal Service Fund reports a deficit in unrestricted net position of $5,037,340 primarily
as a result of funds not being charged enough for fringe benefits.
The Tax Increment Finance Authority and the Brownfield Redevelopment Authority component units reported
deficits in unrestricted net position of $36,255,141 and $26,650,871, respectively at June 30, 2024. The deficits
are a result of full-accrual accounting for long-term obligations, without reflecting a corresponding receivable
for tax captures to be received in future periods (which cannot be accrued in accordance with generally accepted
accounting principles).
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
64
NOTE 4 - DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances for the primary government and component
units (including both pooled cash and investments as well as pension and other postemployment benefit (OPEB)
trust fund balances) as of June 30, 2024:
Primary Component Fiduciary Reporting
Government Units Funds Entity
Cash and cash equivalents 36,457,168$ 22,346,558$ 9,992,035$ 68,795,761$
Equity in pooled cash and investments 104,086,166 497,970 127,435 104,711,571
Cash and cash equivalents - restricted 209,413,077 3,856,930 - 213,270,007
Investments 1,846,087 - 648,106,754 649,952,841
351,802,498$ 26,701,458$ 658,226,224$ 1,036,730,180$
Deposits and investments
Bank deposits
Checking/savings accounts - Pension & OPEB related - nonpooled 8,952,354$
Checking/savings accounts - City-wide accounts - all other 331,968,297
Investment in securities and mutual funds
Pooled investments 47,537,928
Employees' retirement system investments 219,511,565
Police and fire retirement system investments 376,960,165
Employees' money purchase pension plan investments 7,708,688
Retiree health care VEBA investments 43,926,336
Tax increment finance authority investments - pooled investments 35,667
Total investment in securities and mutual funds 1,036,601,000
Cash on hand 129,180
Total 1,036,730,180$
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,
$261,870,419 of the City’s bank balance of $265,165,119 was exposed to custodial credit risk because it was
uninsured and uncollateralized. The book balance of all deposits (other than pension & OPEB related) was
$331,968,297.
The City’s investment policy does not specifically address this risk, although the City believes that due to the
dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to insure all bank deposits. As
a result, the City evaluates each financial institution with which it deposits City funds and assesses the level of
risk of each institution; only those institutions with an acceptable estimated risk level are used as depositories.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
65
NOTE 4 - DEPOSITS AND INVESTMENTS (continued)
Custodial Credit Risk - Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City
will not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. State law does not require, and the City does not have a policy for investment custodial credit
risk. On the investments listed above, there is no custodial credit risk, as these investments are uncategorized
as to credit risk. Disclosure related to the TIFA pooled investment are described in their separately issued,
readily available financial statements so they are not presented here in accordance with GASB 61.
Credit Risk
State law limits investments to specific government securities, certificates of deposit and bank accounts with
qualified financial institutions, commercial paper with specific maximum maturities and ratings when
purchased, bankers’ acceptances of specific financial institutions, qualified mutual funds and qualified external
investment pools as identified in the list of authorized investments in the summary of significant accounting
policies. The City’s investment policy does not have specific limits in excess of state law on investment credit
risk. Credit risk ratings, where applicable, are summarized as follows:
S&P AAAm 14,639,340$
AA 2,668,481
Not rated 29,978,961
Assets not subject to credit risk 251,146
47,537,928$
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 one year 32,647,442$
No maturity 14,890,486
47,537,928$
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
66
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 -$ 29,978,961$ -$ 29,978,961$
Commercial paper - 2,668,481 - 2,668,481
Money market funds 251,146 - - 251,146
251,146$ 32,647,442$ -$ 32,898,588
Investments carried at net asset value
Michigan CLASS government investment pool 14,639,340
47,537,928$
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 45 days.
At year end, the net asset value of the City’s investment in Michigan CLASS was $14,639,340. 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
67
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 $9,992,035 at year end.
Investments
The Michigan Public Employees’ Retirement Systems’ Investment Act, Public Act 314 of 1965, as amended,
authorizes the pension trust funds to invest in stocks, government and corporate securities, mortgages, real
estate, and various other investment instruments, subject to certain limitations. The retirement boards have the
responsibility and authority to oversee the investment portfolio. Various professional investment managers are
contracted to assist in managing the pension trust funds’ assets. All investment decisions are subject to Michigan
law and the investment policy established by the retirement boards.
The investments of each pension trust fund are held in a bank administered trust fund. Following is a summary
of pension and other postemployment benefits investments as of June 30, 2024:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
Domestic corporate security mutual funds 16,417,267$ 29,029,465$ -$ -$ 45,446,732$
Domestic equities
Not on securities loan 52,818,477 89,790,215 - - 142,608,692
On securities loan 4,387,138 7,610,589 - - 11,997,727
International equities
Not on securities loan 1,049,381 1,788,787 - - 2,838,168
On securities loan 193,407 312,088 - - 505,495
Emerging markets equities 12,158,398 17,406,606 - 1,197,625 30,762,629
Real estate investment mutual funds 16,436,966 23,191,494 - - 39,628,460
International equity mutual funds 79,244,706 140,895,145 299,873 4,812,639 225,252,363
Domestic equity mutual funds 27,012,367 51,929,129 6,757,854 18,082,668 103,782,018
Domestic debt securities mutual funds - - 650,961 19,608,153 20,259,114
Money market funds 9,793,458 15,006,647 - 225,251 25,025,356
219,511,565$ 376,960,165$ 7,708,688$ 43,926,336$ 648,106,754$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
68
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 -$ -$ 19,730$ 680,990$ 700,720$
S&P AAAm - - - 267,268 267,268
AA - - 121,807 8,375,062 8,496,869
A- - 448,256 1,930,119 2,378,375
BBB - - 60,090 3,407,631 3,467,721
BB - - - 705,364 705,364
B- - - 431,424 431,424
Not rated 26,210,631 44,035,945 - 4,077,563 74,324,139
Assets not subject to credit risk 193,300,934 332,924,220 7,058,805 24,050,915 557,334,874
219,511,565$ 376,960,165$ 7,708,688$ 43,926,336$ 648,106,754$
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
69
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 679,611$ 1,147,470$ -$ -$ 1,827,081$
Switzerland 160,438 266,711 - - 427,149
United Kingdom 56,309 100,451 - - 156,760
France 9,801 17,467 - - 27,268
Israel 260,535 433,192 - - 693,727
Denmark 51,957 92,638 - - 144,595
Ireland 24,137 42,945 - - 67,082
International mutual funds 79,244,706 140,895,145 299,873 4,812,639 225,252,363
80,487,494$ 142,996,019$ 299,873$ 4,812,639$ 228,596,025$
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 Bloomberg Aggregate Index duration by +/-20%. As of June 30, 2024, 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 13,439,468$
Money market funds 4,357,922
17,797,390$
Police and Fire Retirement System Fixed income investments with no maturity
Domestic corporate securities mutual funds 28,326,284$
Money market funds 4,091,878
32,418,162$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
70
NOTE 4 - DEPOSITS AND INVESTMENTS (continued)
Interest Rate Risk (concluded)
Employees' Money Purchase Pension Plan
Less than 1 1-5 6-10 More than 10 Total
Domestic debt securities mutual funds -$ 589,793$ 60,090$ -$ 649,883$
Investment Maturities (fair value by years)
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, 2024, the fair value of securities on loan by the Employees’ Retirement System and
the Police and Fire Retirement System were $4,682,628 and $8,132,435, respectively, for which the Plans’
received cash collateral of $4,792,108 and $8,329,930, respectively. The contract with the pension and other
postemployment benefits trust fund custodians require them to indemnify the City if the borrowers fail to return
the securities (and if the collateral is inadequate to replace the securities lent) or fail to pay the City for income
distributions by the securities’ issuers while the securities are on loan.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset, as determined by the City’s investment advisors. Level 1 inputs are quoted prices in active markets
for identical assets; level 2 inputs are significant other observable inputs; level 3 inputs are significant
unobservable inputs.
Securities traded on a national or international exchange are valued at the last reported sales price at current
exchange rates. Debt securities are valued by the Plans’ investment custodian using independent pricing
services based on the type of asset. The pricing services may use valuation models or matrix pricing, which
consider: (a) benchmark yields, (b) reported trades, (c) broker/dealer quotes, (d) benchmark securities, (e) bids
or offers, and (f) reference data. Asset-backed and mortgage-backed securities funds are valued based on the
future cash flows of the principal and interest payments of the underlying collateral of mortgages on various
assets. The Plans’ level 2 investments as noted in the tables below are valued using significant other observable
inputs of the underlying securities.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
71
NOTE 4 - DEPOSITS AND INVESTMENTS (continued)
Fair Value Measurement (continued)
The City has the following recurring fair value measurements as of June 30, 2024:
Employee Retirement System
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Domestic equities 57,205,615$ -$ -$ 57,205,615$
International equities 1,242,788 - - 1,242,788
Emerging market equities 12,158,398 - - 12,158,398
Mutual funds 122,674,340 7,940,706 - 130,615,046
Money market funds 9,793,458 - - 9,793,458
203,074,599$ 7,940,706$ -$ 211,015,305
Investments carried at net asset value
Real estate investment trusts 8,496,260
219,511,565$
Police and Fire Retirement System
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Domestic equities 97,400,804$ -$ -$ 97,400,804$
International equities 2,100,875 - - 2,100,875
Emerging market equities 17,406,606 - - 17,406,606
Mutual funds 195,534,253 11,491,453 - 207,025,706
Money market funds 15,006,647 - - 15,006,647
327,449,185$ 11,491,453$ -$ 338,940,638
Investments carried at net asset value
Real estate investment trusts 11,700,041
International equity mutual funds 26,319,486
376,960,165$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
72
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, 2024. 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, 2024, the City has $1,038,686
outstanding on initial commitments of $4,300,000 with the Invesco Mortgage Recovery Fund (the “Fund”). The
Fund has a seven-year life, and the intent is to sell all of the investments prior to the Fund’s maturity. The other
investments at net asset value do not contain required redemption periods.
Employees' Money Purchase Pension Plan
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Mutual funds 7,708,688$ -$ -$ 7,708,688$
Retiree Healthcare VEBA
INVESTMENT TYPE Level 1 Level 2 Level 3 Total
Emerging market equities 1,197,625$ -$ -$ 1,197,625$
Mutual funds 42,503,459 - - 42,503,459
Money market funds 225,252 - - 225,252
43,926,336$ -$ -$ 43,926,336$
NOTE 5 - RECEIVABLES
Receivables are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts receivable 35,030,856$ 7,139,804$ 2,189,900$
Taxes receivable 1,247,791 - -
Special assessments receivable 9,610,828 - -
Loans receivable 1,215,000 - 83,329
Lease receivable 401,310 - -
Accrued interest receivable 2,468,696 160,620 -
Due from other governments 28,200,218 27,992,095 1,726,390
Contract receivable - 15,126,997 -
Allowance for uncollectable accounts (454,677) - (25,280)
77,720,022$ 50,419,516$ 3,974,339$
Amount not expected to be collected within one year 20,076,243$ 13,708,354$ 37,919$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
73
NOTE 6 - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024, was as follows:
Balance Additions/ Deletions/ Balance
July 1, 2023 Reclassifications Reclassifications June 30, 2024
Governmental Activities
Capital assets not being depreciated/amortized
Land 27,743,613$ -$ -$ 27,743,613$
Construction in process 14,907,692 21,571,549 (6,612,527) 29,866,714
Subtotal 42,651,305 21,571,549 (6,612,527) 57,610,327
Capital assets being depreciated/amortized
Land improvements 30,358,916 690,626 - 31,049,542
Equipment and vehicles 48,220,562 9,922,107 (2,520,563) 55,622,106
Buildings 138,336,441 67,095 - 138,403,536
Flowage rights 31,755,473 - - 31,755,473
Right of use - SBITA 5,565,757 - - 5,565,757
Infrastructure 347,616,598 5,980,906 - 353,597,504
Subtotal 601,853,747 16,660,734 (2,520,563) 615,993,918
Less accumulated depreciation/amortization for:
Land improvements (17,184,583) (1,144,037) - (18,328,620)
Equipment and vehicles (39,654,006) (2,937,531) 2,367,283 (40,224,254)
Buildings (107,524,342) (3,379,620) - (110,903,962)
Flowage rights (1,433,214) (1,058,515) - (2,491,729)
Right of use - SBITA (1,056,410) (1,124,066) - (2,180,476)
Infrastructure (239,358,518) (6,042,014) - (245,400,532)
Subtotal (406,211,073) (15,685,783) 2,367,283 (419,529,573)
Net capital assets being depreciated/amortized 195,642,674 974,951 (153,280) 196,464,345
Capital assets, net 238,293,979$ 22,546,500$ (6,765,807)$ 254,074,672$
At June 30, 2024, the City’s governmental activities had outstanding commitments through construction
contracts of approximately $51,566,000.
Depreciation/amortization expense was charged to the following governmental activities:
Depreciation/amortization of governmental activities by function
General government 172,598$
Public safety 1,050,858
Public works 7,394,481
Recreation and culture 3,173,265
Community and economic development 551,889
Internal service fund 3,342,692
Total depreciation/amortization expense - governmental activities 15,685,783$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
74
NOTE 6 - CAPITAL ASSETS (concluded)
Balance Additions/ Deletions/ Balance
July 1, 2023 Reclassifications Reclassifications June 30, 2024
Business-Type Activities
Capital assets not being depreciated
Land 12,369,507$ -$ -$ 12,369,507$
Construction in progress 36,024,876 11,742,992 (35,071,974) 12,695,894
Subtotal 48,394,383 11,742,992 (35,071,974) 25,065,401
Capital assets being depreciated
Land improvements 30,077,106 - - 30,077,106
Equipment and vehicles 11,381,920 10,570,633 - 21,952,553
Buildings 195,844,783 28,000 - 195,872,783
Sewers 367,525,139 25,518,892 - 393,044,031
Subtotal 604,828,948 36,117,525 - 640,946,473
Less accumulated depreciation for:
Land improvements (14,008,609) (531,796) - (14,540,405)
Equipment and vehicles (8,819,687) (553,222) - (9,372,909)
Buildings (143,802,556) (4,713,156) - (148,515,712)
Sewers (137,500,460) (7,564,174) - (145,064,634)
Subtotal (304,131,312) (13,362,348) - (317,493,660)
Net capital assets being depreciated 300,697,636 22,755,177 - 323,452,813
Capital assets, net 349,092,019$ 34,498,169$ (35,071,974)$ 348,518,214$
At June 30, 2024, the City’s business-type activities had outstanding commitments through construction
contracts of approximately $42,493,000.
Depreciation expense was charged to the following business-type activities:
Depreciation of business-type activities by function
Sewage disposal system 11,284,367$
Municipal parking system 2,006,045
Cemetery 9,827
Golf 56,743
Recycling 5,366
Total depreciation expense - business-type activities 13,362,348$
Details applicable to the Component Units capital assets are readily available in their separate issued financial
statements and are not duplicated here in accordance with GASB 61.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
75
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 20,179,607$ 6,387,960$ 5,050,449$
Accrued payroll 2,804,224 99,657 -
Deposits payable - 87,401 -
Due to other governments 2,408,623 1,679,960 46,430
Claims incurred but not reported 1,500,590 - -
Other 2,851,537 - 504,222
29,744,581$ 8,254,978$ 5,601,101$
NOTE 8 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances of the primary government as of June 30, 2024, was as follows:
Due to and from primary government funds
Due to Nonmajor Governmental Funds
Nonmajor Governmental Funds 1,931,186$
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, 2024, interfund transfers consisted of the following:
Proprietary
General
Fund
Federal
Grants -
Special
Revenue
Nonmajor
Governmental
Funds
Municipal
Parking Total
Transfers out
Governmental
General Fund -$ 278,649$ 8,644,981$ -$ 8,923,630$
Federal Grants - Special Revenue 8,287,500 - - - 8,287,500 Nonmajor Governmental Funds 348,720 - 4,033,345 - 4,382,065
Proprietary
Internal Service Fund - - - 223,750 223,750
Total 8,636,220$ 278,649$ 12,678,326$ 223,750$ 21,816,945$
Governmental
Transfers In
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
76
NOTE 8 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (concluded)
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 WithinDate Rates Amount July 1, 2023 (Deletions) June 30, 2024 One Year
Governmental Activities
2019 General Obligation Refunding - Limited Tax(1)4/10/2019 4.00% 7,456,200$ 5,253,000$ (599,250)$ 4,653,750$ 624,750$ 2021 Capital Improvement Bonds, Series 2021 (LTGO) 12/21/2021 2.15% 10,569,000 3,925,000 (270,000) 3,655,000 280,000
Capital Improvement Bonds, Series 2023 (Ovation) 8/16/2023 5.00% 20,000,000 - 20,000,000 20,000,000 - 2023B Capital Improvement Bonds (LTGO) 6/29/2023 4.00%-5.00% 175,000,000 175,000,000 (2,210,000) 172,790,000 1,970,000
Montgomery Drain District - Series 2021 G.O. Bonds (3)8/1/2022 2.00%-2.45% 3,961,607 3,745,000 (140,000) 3,605,000 -
Montgomery Drain District - Series 2023 G.O. Bonds (3)3/1/2023 1.125%-4.125% 7,760,986 7,760,986 (170,986) 7,590,000 -
Montgomery Drain District - Series 2020A G.O. Bonds (3)9/8/2020 3.00% 20,032,880 18,860,000 (400,000) 18,460,000 -
Total Governmental Activities 244,780,673 214,543,986 16,209,764 230,753,750 2,874,750
Business-type Activities
2009 Building Authority Refunding Bonds - Limited Tax 11/9/2009 6.85% 2,767,491 430,653 (430,653) - -
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 1.045%-2.793% 8,735,000 8,435,000 (100,000) 8,335,000 100,000 2002 Limited Tax Sewer Bond - 5005-14 3/28/2002 2.50% 12,381,131 761,131 (761,131) - -
2003 Limited Tax Sewer Bond - 5005-15 3/27/2003 2.50% 10,145,688 1,230,688 (620,000) 610,688 610,688
2004 Limited Tax Sewer Bond - 5005-16 3/25/2004 2.125% 3,842,649 667,649 (220,000) 447,649 220,000
2005 Limited Tax Sewer Bond - 5005-17 3/25/2004 2.125% 8,003,778 1,368,778 (455,000) 913,778 465,000 2005 Limited Tax Sewer Bond - 5005-18 3/34/2005 1.625% 13,389,371 2,709,371 (680,000) 2,029,371 680,000 2006 Limited Tax Sewer Bond - 5005-19 3/30/2006 1.625% 18,216,346 4,901,346 (970,000) 3,931,346 980,000
2007 Limited Tax Sewer Bond - 5005-20 3/29/2007 1.625% 24,244,726 7,634,726 (1,250,000) 6,384,726 1,275,000
2008 Limited Tax Sewer Bond - 5005-21 4/1/2008 2.50% 27,494,933 11,150,453 (1,480,000) 9,670,453 1,515,000
2008 Limited Tax Sewer Bond - 5005-22 4/17/2009 2.50% 14,455,604 7,345,604 (740,000) 6,605,604 755,000
2010 Limited Tax Sewer Bond - 5411-01 1/22/2010 2.50% 8,548,000 4,703,000 (430,000) 4,273,000 435,000
2015 Limited Tax Sewer Bond - 5211-01 4/9/2014 2.50% 3,372,405 2,217,405 (160,000) 2,057,405 165,000 2015 Limited Tax Sewer Bond - 5211-02 7/9/2014 2.50% 2,185,065 1,420,065 (105,000) 1,315,065 105,000
2016 Limited Tax Sewer Bond - 5581-01 4/11/2016 2.50% 3,206,310 2,536,310 (140,000) 2,396,310 145,000
2019 Limited Tax Sewer Bond - 5005-23 4/10/2018 2.00% 8,877,827 7,697,827 (400,000) 7,297,827 420,000
2019 Limited Tax Sewer Bond - 5672-01 (2)6/7/2019 2.00% 9,214,990 8,404,990 (420,000) 7,984,990 430,000
2019 General Obligation Refunding - Limited Tax - Sewer (1)4/10/2019 4.00% 7,163,800 5,047,000 (575,750) 4,471,250 600,250
2022 Limited Tax Sewer Bond - 5005-24 (4)3/25/2022 2.125% 23,570,000 17,303,437 3,202,528 20,505,965 -
2023 Limited Tax Sewer Bond - 5005-25 (5)3/24/2023 1.875% 19,881,280 109,217 - 109,217 -
2023 Limited Tax Sewer Bond - 5005-26 (6)4/1/2024 2.00% 11,595,000 - 424,351 424,351 -
2020 CIB & Refunding Bonds - Municipal Parking 8/13/2020 3.00%-5.00% 9,405,000 8,125,000 (600,000) 7,525,000 625,000
Total Business-type Activities 261,501,394 115,004,650 (6,910,655) 108,093,995 9,525,938
Total General Obligation Bonds 506,282,067$ 329,548,636$ 9,299,109$ 338,847,745$ 12,400,688$
(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) The annual requirements to pay the long-term debt principal and interest outstanding are not shown becausethe loan has not been fully drawn down and as a result the maturity schedule is not in place at year end,the first payment is anticipated to be made during fiscal year 2025.
(5) The annual requirements to pay the long-term debt principal and interest outstanding are not shown because
the loan has not been fully drawn down and as a result the maturity schedule is not in place at year end,
the first payment is anticipated to be made during fiscal year 2027.(6) The annual requirements to pay the long-term debt principal and interest outstanding are not shown because
the loan has not been fully drawn down and as a result the maturity schedule is not in place at year end,
the first payment is anticipated to be made during fiscal year 2026.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
77
NOTE 9 - LONG-TERM OBLIGATIONS (continued)
General Obligation Bonds (concluded)
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 WithinDate Rates Amount July 1, 2023 Deletions June 30, 2024 One YearBusiness-type Activities2013 Sewer Revenue Refunding Bonds 12/27/2012 3.125%-5.000% 21,765,000$ 7,875,000$ (1,575,000)$ 6,300,000$ 1,575,000$ The purpose of these noted bonds were for sewer capital improvement projects.
Pledged Revenues
The City has pledged future sewer customer revenues, net of specified operating expenses, to repay $7,875,000
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 $1,878,188 and $28,265,866, respectively.
Installment Purchase Agreements
The government has entered into installment purchase agreements for equipment and related capital assets.
Installment purchase agreements outstanding at year-end are as follows:
AmountsIssuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1, 2023 (Deletions) June 30, 2024 One Year
Governmental Activities
2021 Installment Purchase Agreement (LTGO) 8/18/2021 2.14% 10,569,000$ 9,661,000$ (652,000)$ 9,009,000$ 666,000$
2021 Installment Purchase Agreement (LTGO) 9/1/2021 1.81% 12,500,000 11,387,000 (784,000) 10,603,000 799,000
23,069,000$ 21,048,000$ (1,436,000)$ 19,612,000$ 1,465,000$ The purpose of the lease purchase agreements were for vehicle acquisitions as noted and the installment
purchase agreements were for various facility improvements.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
78
NOTE 9 - LONG-TERM OBLIGATIONS (continued)
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, 2023 (Deletions) June 30, 2024 One Year
Governmental Activities
HUD Section 108 Loan 5/28/2015 1.52% 5,900,000$ 4,725,000$ (410,000)$ 4,315,000$ 420,000$
2020 IPA Fire Truck 10/28/2020 1.40% 1,390,000 1,036,287 (131,463) 904,824 133,311
2014 SIB Loan 3/27/2014 3.00% 1,972,600 331,419 (272,070) 59,349 59,349
9,262,600$ 6,092,706$ (813,533)$ 5,279,173$ 612,660$ 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.
Subscription-Based IT Arrangements
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1, 2023 (Deletions) June 30, 2024 One Year
Governmental Activities
2023 Subscription-based IT arrangement 9/22/2022 1.85% 3,520,987$ 3,040,639$ (463,057)$ 2,577,582 471,623$
2023 Subscription-based IT arrangement 7/8/2022 1.85% 899,659 594,259 (294,406) 299,853 299,853 2023 Subscription-based IT arrangement 2/21/2023 1.85% 304,453 262,766 (100,230) 162,536 102,100
2023 Subscription-based IT arrangement 7/1/2022 1.85% 114,393 76,846 (38,068) 38,778 38,778
2022 Subscription-based IT arrangement 11/16/2021 1.85% 916,306 549,660 (179,872) 369,788 183,200
5,755,798$ 4,524,170$ (1,075,633)$ 3,448,537$ 1,095,554$ The City’s outstanding notes from direct borrowings and direct placements related to governmental activities of
$28,339,710 contains provisions that in an event of default, either by (1) unable to make principal or interest
payments (2) false or misrepresentation is made to the lender (3) become insolvent or make an assignment for
the benefit of its creditors (4) if the lender at any time in good faith believes that the prospect of payment of any
indebtedness is impaired. Upon the occurrence of any default event, the outstanding amounts, including accrued
interest become immediately due and payable.
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.
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.
Prior Year Defeased Debt
As of June 30, 2024, defeased bonds related to the prior year refunding of the 2018 Building Authority Refunding
Bonds were still outstanding in the amount of $3,100,000. The defeased bonds are scheduled to be paid by the
escrow agent in installments through 2027.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
79
NOTE 9 - LONG-TERM OBLIGATIONS (continued)
The following is a summary of changes in long-term debt (including current portion) of the City for the year
ended June 30, 2024.
Amounts
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year
Governmental Activities
General obligation bonds 214,543,986$ 20,000,000$ (3,790,236)$ 230,753,750$ 2,874,750$
Notes from direct borrowings and direct placements
Installment purchase agreements 21,048,000 - (1,436,000) 19,612,000 1,465,000 Subscription-based IT arrangement payable 4,524,170 - (1,075,633) 3,448,537 1,095,554
Loans payable 6,092,706 - (813,533) 5,279,173 612,660
246,208,862 20,000,000 (7,115,402) 259,093,460 6,047,964
Deferred amounts for issuance premiums 11,526,235 571,444 (618,066) 11,479,613 - Compensated absences 11,188,764 1,534,666 (1,647,472) 11,075,958 1,647,472
Accrued workers compensation 2,989,432 842,573 (678,712) 3,153,293 648,094
271,913,293$ 22,948,683$ (10,059,652)$ 284,802,324$ 8,343,530$
Business-type Activities
General obligation bonds 115,004,650$ 3,626,879$ (10,537,534)$ 108,093,995$ 9,525,938$
Revenue bonds 7,875,000 - (1,575,000) 6,300,000 1,575,000
122,879,650 3,626,879 (12,112,534) 114,393,995 11,100,938
Deferred amounts
For issuance discounts (79,651) - 60,085 (19,566) - For issuance premiums 1,972,584 - (170,517) 1,802,067 -
Compensated absences 885,955 93,322 (66,561) 912,716 66,562
125,658,538$ 3,720,201$ (12,289,527)$ 117,089,212$ 11,167,500$
Component Units
Brownfield Redevelopment Authority
Revenue bonds 39,095,000$ -$ (730,000)$ 38,365,000$ 895,000$
Direct borrowings and direct placements
Loan payable 476,820 - - 476,820 133,839
39,571,820 - (730,000) 38,841,820 1,028,839
Less unamortized discount on general
obligation bonds (712,759) - 26,263 (686,496) -
38,859,061 - (703,737) 38,155,324 1,028,839
Tax Increment Financing Authority
General obligation bonds 28,215,000 - (50,000) 28,165,000 915,000
Direct borrowings and direct placements
Contract payable 10,009,580 - - 10,009,580 -
38,224,580 - (50,000) 38,174,580 915,000
Add accreted interest on contract payable 2,826,676 430,113 (1,508,136) 1,748,653 767,510
41,051,256 430,113 (1,558,136) 39,923,233 1,682,510
Lansing Entertainment and Public Facilities Authority
Direct borrowings and direct placements
Leases payable 20,565 285,340 (35,583) 270,322 43,883
Total component units 79,930,882$ 715,453$ (2,297,456)$ 78,348,879$ 2,755,232$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
80
NOTE 9 - LONG-TERM OBLIGATIONS (concluded)
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.
For 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
Ending
June 30, Principal Interest Principal Interest Principal Interest
2025 2,874,750$ 9,951,337$ 9,525,938$ 2,129,063$ 1,575,000$ 303,188$
2026 4,290,250 9,808,187 9,546,177 1,933,656 1,575,000 224,438
2027 4,680,750 9,629,333 8,878,621 1,733,840 1,575,000 145,688
2028 5,098,800 9,429,404 8,217,546 1,517,542 1,575,000 98,438
2029 5,536,850 9,208,905 7,422,876 1,362,105 - -
2030-2034 32,417,350 42,182,121 24,291,707 4,512,412 - -
2035-2039 43,985,000 33,826,135 17,363,780 1,551,465 - -
2040-2044 61,205,000 23,095,823 1,807,817 29,900 - - 2045-2049 62,795,000 8,306,303 - - - -
2050-2051 7,870,000 581,743 - - - -
230,753,750$ 156,019,291$ 87,054,462$ 14,769,983$ 6,300,000$ 771,752$
General Obligation Bonds Revenue Bonds
Governmental Activities Business-Type Activities Business-Type Activities
Debt service requirements to maturity for the notes from direct borrowings and direct placements of the City
are as follows:
Year
Ending
June 30, Principal Interest
2025 3,173,214$ 527,559$
2026 2,852,260 482,380
2027 2,622,185 437,629
2028 2,678,585 391,365
2029 2,731,187 343,734
2030-2034 10,686,279 966,631
2035-2036 3,596,000 97,254
28,339,710$ 3,246,552$
Governmental Activities
Direct Borrowings and
Direct Placements
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
81
NOTE 10 - FUND BALANCES - GOVERNMENTAL FUNDS
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 Public Safety Governmental
Fund Grants Capital Projects Funds Total
Fund Balances
Nonspendable
Inventory -$ -$ -$ 1,461,219$ 1,461,219$
Prepaids 1,035,441 - - - 1,035,441
Corpus of permanent funds - - - 2,053,956 2,053,956
Restricted
Major and local streets - public works - - - 27,564,756 27,564,756
Drug law and narcotics enforcement - public safety - - - 1,139,112 1,139,112
Debt service - - - 11,876,640 11,876,640
Building department - - - 4,008,847 4,008,847
Public safety - - 172,703,932 1,487,857 174,191,789
Capital projects - public works - - - 22,297,706 22,297,706
Stabilization arrangement 7,792,610 - - - 7,792,610
Committed
Pension/OPEB 282,524 - - - 282,524
City parks - - - 523,645 523,645
Disaster contingency fund - - - 500,000 500,000
Building department - - - 328,998 328,998
Capital improvements - - - 9,064,397 9,064,397
Assigned - subsequent year's expenditures 175,000 - - - 175,000
Unassigned 31,366,271 - - - 31,366,271
TOTAL FUND BALANCES 40,651,846$ -$ 172,703,932$ 82,307,133$ 295,662,911$
NOTE 11 - NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of June 30, 2024, was as follows:
Governmntal Business-type Component
Activities Activities Units
Capital assets
Capital assets not being depreciated/amortized 57,610,327$ 25,065,401$ -$
Capital assets being depreciated/amortized, net 196,464,345 323,452,813 2,246,864
Total capital assets 254,074,672 348,518,214 2,246,864
Related debt
General obligation bonds 230,753,750 108,093,995 -
Direct borrowing and direct placements - - 270,322
Revenue bonds - 6,300,000 -
Installment purchase agreements (IPA) 19,612,000 - -
Loans payable 5,279,173 - -
Subscription-based IT arrangement payable 3,448,537 - -
Unamortized bond discounts - (19,566) -
Unamortized bond premiums 11,479,613 1,802,067 -
Deferred charge on bond refunding (190,477) (3,356,682) -
Unspent bond proceeds - public safety (172,703,932) - -
Unspent bond proceeds - ovation (20,024,743) - -
Total related debt 77,653,921 112,819,814 270,322
Net investment in capital assets 176,420,751$ 235,698,400$ 1,976,542$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
82
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 $250,000. The City estimates healthcare claims
that are incurred but not reported as of year-end, which is accounted for in the City's Fringe Benefits Internal
Service Fund. Changes in the estimated liability were as follows:
2024 2023
Estimated liability, beginning of year 1,380,000$ 1,500,000$
Estimated claims incurred,
including changes in estimates 16,236,132 13,271,334
Claim payments (16,115,542) (13,391,334)
Estimated liability, end of year 1,500,590$ 1,380,000$
Fiscal Year Ended June 30,
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 $17,500,000 per occurrence
with a $100,000 deductible. Changes in the estimated long-term liability as well as the total estimated cost of
claims for the past two fiscal years were as follows:
2024 2023
Estimated liability, beginning of year 2,989,432$ 3,082,191$
Estimated claims incurred,
including changes in estimates 842,573 892,632
Claim payments (678,712) (985,391)
Estimated liability, end of year 3,153,293$ 2,989,432$
Fiscal Year Ended June 30,
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
83
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 2023 taxable value for
all properties within the City is $2,799,820,059. 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, 2024 was $19.44 per $1,000 of taxable
value. Additionally, the City is permitted to levy taxes up to $3.90 per $1,000 of assessed valuation for principal
and interest on long-term debt, of which the City levied $3.50 per $1,000 of taxable value for the year ended June
30, 2024.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
84
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, 2023, plan membership consisted of the following:
Inactive employees or beneficiaries receiving benefits 922
Inactive employees entitled to but not yet receiving benefits 235
Vested and non-vested active participants 409
Total employees covered by the Plan 1,566
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
85
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES’ RETIREMENT SYSTEM (continued)
Benefits Provided (concluded)
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%
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, 2024 was 115.95% 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%
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
86
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES’ 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
is shown on the following pages.
Rate of Return
For the year ended June 30, 2024, the annual money-weighted rate of return on pension plan investments, net
of pension plan investment expense, was 10.97% for the changing amounts actually invested.
Concentrations
At June 30, 2024, 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.
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, 2023 to June 30, 2024, 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, 2024 is as follows:
Reserve/Group Balance
Employee savings fund 12,198,440$
Retirement reserve fund 139,323,006
Members benefit fund 12,981,280
Health insurance fund 47,587,616
Net Pension Liability
The components of the net pension liability for the employees’ retirement system at June 30, 2024 were as follows:
Total Pension Liability 310,638,367$
Plan Fiduciary Net Position 164,586,317
Net Pension Liability 146,052,050$
Plan fiduciary net position as percentage
of total Pension Liability 52.98%
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
87
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES’ RETIREMENT SYSTEM (continued)
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2023, rolled forward to
June 30, 2024, 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).
The actuarial assumptions used in the December 31, 2023 valuation were based on the 2015-2019 experience
study.
Assumption changes - there were no changes in actuarial assumptions during fiscal year 2024. More details
regarding actuarial assumptions can be found in the December 31, 2023, valuation reports for each system.
Benefit changes - there were no changes to benefits in the current year.
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, 2023, and the final investment return assumption, are summarized in the following table:
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 32.00% 6.20% 1.98%
International Equity - Developed 12.00% 6.35% 0.76%
International Equity - Emerging 4.00% 6.65% 0.27%
Fixed Income - U.S. 22.00% 2.30% 0.51%
Real Estate 10.00% 4.55% 0.46%
Global Opportunistic Fixed Income 5.00% 4.50% 0.23%
Global Equity Long/Short 10.00% 4.25% 0.43%
Absolute Return 5.00% 4.00% 0.20%
100.00% 4.82%
Inflation 2.50%
Risk adjustment -0.32%
Investment rate of return 7.00%
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
88
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:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a)-(b)
Balances at June 30, 2023 309,969,880$ 145,869,059$ 164,100,821$
Changes for the Year
Service cost 3,074,831 - 3,074,831
Interest on total pension liability 21,073,196 - 21,073,196
Difference between expected and actual experience 931,426 - 931,426
Employer contributions - 13,793,087 (13,793,087)
Employee contributions - 1,417,258 (1,417,258)
Contributions - state grant - 11,551,892 (11,551,892)
Net investment income - 16,452,547 (16,452,547)
Benefit payments, including employee refunds (24,410,966) (24,410,966) -
Administrative expense - (86,560) 86,560
Net changes 668,487 18,717,258 (18,048,771)
Balances as of June 30, 2024 310,638,367$ 164,586,317$ 146,052,050$
Increase (Decrease)
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 173,206,995$ 146,052,050$ 120,996,550$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
89
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, 2024, the City recognized ERS pension expense of $13,302,664. At June 30, 2024,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience 620,951$ 695,145$
Net difference between projected and actual earnings
on pension plan investments 5,007,547 -
Total 5,628,498$ 695,145$
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
2025 48,879$
2026 5,909,888
2027 170,159
2028 (1,195,573)
4,933,353$
At June 30, 2024, the City did not have any outstanding contributions to the pension plan required for the year
ended June 30, 2024.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
90
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Plan Description (concluded)
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.
Plan Membership
At December 31, 2023, plan membership consisted of the following:
Inactive employees or beneficiaries receiving benefits 818
Inactive employees entitled to but not yet receiving benefits 85
Vested and non-vested active participants 340
Total employees covered by the Plan 1,243
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
91
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
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,
2024 was 74.10% 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, 2024, the annual money-weighted rate of return on pension plan investments, net
of pension plan investment expense, was 11.65%. The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
Concentrations
At June 30, 2024, 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
92
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE 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, 2023 to June 30, 2024 has been included in the Retirement reserve 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, 2024 is as follows:
Reserve/Group Balance
Retirement reserve fund 279,142,388$
Employee savings fund 27,204,094
Health insurance fund 58,816,705
Net Pension Liability
The components of the net pension liability for the police and fire retirement system at June 30, 2024, were as
follows:
Total Pension Liability 537,677,193$
Plan Fiduciary Net Position 305,694,169
Net Pension Liability 231,983,024$
Plan fiduciary net position as percentage
of total Pension Liability 56.85%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2023, rolled forward to
June 30, 2024, 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 (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, 2023 valuation were based on the 2015-2019 experience
study.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
93
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Actuarial Assumptions (concluded)
Assumption changes - there were no changes in actuarial assumptions during fiscal year 2024. More details
regarding actuarial assumptions can be found in the December 31, 2023, valuation reports for each system.
Benefit changes - there were no changes to benefits in the current year.
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
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 32.00% 6.20% 1.98%
International Equity - Developed 12.00% 6.35% 0.76%
International Equity - Emerging 4.00% 6.65% 0.27%
Fixed Income - U.S. 22.00% 2.30% 0.51%
Real Estate 10.00% 4.55% 0.46%
Global Opportunistic Fixed Income 5.00% 4.50% 0.23%
Global Equity Long/Short 10.00% 4.25% 0.43%
Absolute Return 5.00% 4.00% 0.20%
100.00% 4.82%
Inflation 2.50%
Risk adjustment -0.32%
Investment rate of return 7.00%
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
94
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:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a)-(b)
Balances at June 30, 2023 525,035,189$ 286,638,408$ 238,396,781$
Changes for the Year
Service cost 7,023,797 - 7,023,797
Interest on total pension liability 35,852,495 - 35,852,495
Difference between expected and actual experience 9,526,686 - 9,526,686
Employer contributions - 20,638,901 (20,638,901)
Employee contributions - 3,232,535 (3,232,535)
Net investment income - 35,058,403 (35,058,403)
Benefit payments, including employee refunds (39,760,974) (39,760,974) -
Administrative expense - (113,104) 113,104
Net changes 12,642,004 19,055,761 (6,413,757)
Balances as of June 30, 2024 537,677,193$ 305,694,169$ 231,983,024$
Increase (Decrease)
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 290,185,179$ 231,983,024$ 179,297,361$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
95
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, 2024, the City recognized Police and Fire Retirement System pension expense of
$36,933,052. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience 2,723,322$ -$
Net difference between projected and actual earnings
on pension plan investments 17,451,669 -
Total 20,174,991$ -$
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
2025 7,317,275$
2026 15,650,391
2027 352,824
2028 (3,145,499)
20,174,991$
At June 30, 2024, the City did not have any outstanding amount of contributions to the pension plan required for
the year ended June 30, 2024.
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
96
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 146,052,050$ 231,983,024$ 378,035,074$
Deferred outflows - pension 5,628,498 20,174,991 25,803,489
Deferred inflows - pension 695,145 - 695,145
Pension expense 13,302,664 36,933,052 50,235,716
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 outlined 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, 2024 were $551,413
for plan members. Employee contributions for the year ended June 30, 2024 were $560,478. 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
97
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)
Plan Description
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.
Membership of the Plan consisted of the following at January 1, 2023, the date of the most recent actuarial
valuation:
Retirees and beneficiaries receiving benefits 341
Terminated plan members entitled to but not
yet receiving benefits 28
Active plan member 56
Total 425
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, 2024, the City contributed $1,492,189 to the Plan.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
98
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION (VEBA) (continued)
Rate of Return
For the year ended June 30, 2024, the annual money-weighted rate of return on investments, net of investment
expense, was 10.74%. The money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
Net OPEB Liability of the City
The components of the net OPEB liability of the City at June 30, 2024, were as follows:
Total OPEB Liability 57,744,273$
Plan Fiduciary Net Position 45,008,901
Net OPEB Liability 12,735,372$
Plan fiduciary net position as
percentage of total OPEB liability 77.95%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, rolled forward to June
30, 2024, 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-2021.
The actuarial assumptions used in the January 1, 2023, valuation were based on the 2015-2019 experience study.
Assumption changes - there were no changes of assumptions in 2024.
Benefit changes - there were no changes to benefits in 2024.
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, 2024 is summarized in the table on the following page.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
99
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION (VEBA) (continued)
Investment Policy (concluded)
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,
2024 are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 32.00% 6.20% 1.98%
International Equity - Developed 12.00% 6.35% 0.76%
International Equity - Emerging 4.00% 6.65% 0.27%
Fixed Income - U.S. 22.00% 2.30% 0.51%
Real Assets 10.00% 4.25% 0.43%
Global Opportunistic Fixed Income 5.00% 3.65% 0.18%
Global Equity Long/Short 10.00% 4.50% 0.45%
Absolute Return 5.00% 4.25% 0.21%
100.00% 4.79%
Inflation 2.50%
Risk adjustment -0.29%
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 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
100
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION (VEBA) (continued)
Discount Rate (concluded)
The components of the change in the net OPEB liability are summarized as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30, 2023 56,782,750$ 39,118,304$ 17,664,446$
Changes for the year
Service cost 643,122 - 643,122
Interest on total OPEB liability 4,135,397 - 4,135,397
Difference between expected and
actual return on investments (3,816,996) - (3,816,996)
Employer contributions - 1,492,189 (1,492,189)
Net investment income - 4,518,211 (4,518,211)
Administrative expense - (119,803) 119,803
Net changes 961,523 5,890,597 (4,929,074)
Balances as of June 30, 2024 57,744,273$ 45,008,901$ 12,735,372$
Calculating the Net OPEB Liability
Increase (Decrease)
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 16,758,806$ 12,735,372$ 9,489,750$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
101
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION (VEBA) (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 9,354,014$ 12,735,372$ 16,900,979$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City recognized OPEB expense of $1,511,417. At June 30, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience -$ 2,544,664$
Net difference between projected and actual
earnings on plan investments 21,952 -
Total 21,952$ 2,544,664$
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
2025 (1,125,867)$
2026 (652,739)
2027 (664,139)
2028 (79,967)
(2,522,712)$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
102
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION (VEBA) (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, 2024, the City reported no amount payable to the OPEB plan.
EMPLOYEES’ RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Employees’ Retirement System OPEB Plan (the “Plan”), a single-employer,
defined benefit OPEB plan that 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, 2023, the date of the most recent actuarial
valuation:
Retirees and beneficiaries receiving benefits 594
Terminated plan members entitled to but not
yet receiving benefits 29
Active plan member 373
Total 996
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
103
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES’ RETIREMENT SYSTEM (continued)
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, 2024, the City contributed $11,886,843 (direct benefit payments of $11,071,584 and City contributions of
$815,259) to the Plan.
Rate of Return
For the year ended June 30, 2024, the annual money-weighted rate of return on investments, net of investment
expense, was 5.34%. The money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
Net OPEB Liability of the City
The components of the net OPEB liability of the City at June 30, 2024, were as follows:
Total OPEB Liability 92,930,271$
Plan Fiduciary Net Position 47,504,025
Net OPEB Liability 45,426,246$
Plan fiduciary net position as
percentage of total OPEB liability 51.12%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, rolled forward to June
30, 2024, 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-2021.
The actuarial assumptions used in the January 1, 2023, valuation were based on the 2015-2019 experience study.
Assumption changes - there were no changes of assumptions in 2024.
Benefit changes - there were no changes to benefits in 2024.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
104
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES’ 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, 2024 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,
2024 are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 32.00% 6.20% 1.98%
International Equity - Developed 12.00% 6.35% 0.76%
International Equity - Emerging 4.00% 6.65% 0.27%
Fixed Income - U.S. 22.00% 2.30% 0.51%
Real Assets 10.00% 4.25% 0.43%
Global Opportunistic Fixed Income 5.00% 3.65% 0.18%
Global Equity Long/Short 10.00% 4.50% 0.45%
Absolute Return 5.00% 4.25% 0.21%
100.00% 4.79%
Inflation 2.50%
Risk adjustment -0.29%
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 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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
105
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES’ RETIREMENT SYSTEM (continued)
Discount Rate (concluded)
The components of the change in the net OPEB liability are summarized as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30, 2023 102,433,054$ 44,384,706$ 58,048,348$
Changes for the year
Service cost 1,049,303 - 1,049,303
Interest on total OPEB liability 6,747,227 - 6,747,227
Difference between expected and
actual return on investments (6,227,729) - (6,227,729)
Employer contributions - 11,886,843 (11,886,843)
Net investment income - 2,455,416 (2,455,416)
Benefit payments (11,071,584) (11,071,584) -
Administrative expense - (151,356) 151,356
Net changes (9,502,783) 3,119,319 (12,622,102)
Balances as of June 30, 2024 92,930,271$ 47,504,025$ 45,426,246$
Calculating the Net OPEB Liability
Increase (Decrease)
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 59,777,575$ 45,426,246$ 33,849,323$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
106
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 33,365,160$ 45,426,246$ 60,284,697$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City recognized OPEB expense of $2,465,996. At June 30, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience -$ 4,151,819$
Net difference between projected and actual
earnings on plan investments 35,816 -
Total 35,816$ 4,151,819$
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
2025 (1,836,941)$
2026 (1,064,995)
2027 (1,083,596)
2028 (130,471)
(4,116,003)$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
107
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, 2024, the City reported no amount payable to the OPEB plan.
POLICE AND FIRE RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Police and Fire Retirement System OPEB Plan (the “Plan”), a single-
employer, defined benefit OPEB plan that 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, 2023, the date of the most recent actuarial
valuation:
Retirees and beneficiaries receiving benefits 643
Terminated plan members entitled to but not
yet receiving benefits 12
Active plan member 312
Total 967
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
108
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
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, 2024, the City contributed $13,313,395 (direct benefit payments of $10,063,103 and City contributions of
$3,250,292) to the Plan.
Rate of Return
For the year ended June 30, 2024, the annual money-weighted rate of return on investments, net of investment
expense, was 7.92%. The money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
The components of the net OPEB liability of the City at June 30, 2024, were as follows:
Total OPEB Liability 210,547,076$
Plan Fiduciary Net Position 59,469,018
Net OPEB Liability 151,078,058$
Plan fiduciary net position as
percentage of total OPEB liability 28.24%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, rolled forward to June
30, 2024, 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-2021.
The actuarial assumptions used in the January 1, 2023, valuation were based on the 2015-2019 experience study.
Assumption changes - there were no changes of assumptions in 2024.
Benefit changes - there were no changes to benefits in 2024.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
109
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, 2024 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,
2024 are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 32.00% 6.20% 1.98%
International Equity - Developed 12.00% 6.35% 0.76%
International Equity - Emerging 4.00% 6.65% 0.27%
Fixed Income - U.S. 22.00% 2.30% 0.51%
Real Assets 10.00% 4.25% 0.43%
Global Opportunistic Fixed Income 5.00% 3.65% 0.18%
Global Equity Long/Short 10.00% 4.50% 0.45%
Absolute Return 5.00% 4.25% 0.21%
100.00% 4.79%
Inflation 2.50%
Risk adjustment -0.29%
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.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
110
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Discount Rate (concluded)
The components of the change in the net OPEB liability are summarized as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30, 2023 211,745,553$ 55,112,232$ 156,633,321$
Changes for the year
Service cost 1,566,323 - 1,566,323
Interest on total OPEB liability 14,585,580 - 14,585,580
Difference between expected and
actual return on investments (7,287,277) - (7,287,277)
Employer contributions - 13,313,395 (13,313,395)
Net investment income - 1,471,511 (1,471,511)
Benefit payments (10,063,103) (10,063,103) -
Administrative expense - (365,017) 365,017
Net changes (1,198,477) 4,356,786 (5,555,263)
Balances as of June 30, 2024 210,547,076$ 59,469,018$ 151,078,058$
Calculating the Net OPEB Liability
Increase (Decrease)
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 178,463,974$ 151,078,058$ 129,211,588$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
111
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 128,173,324$ 151,078,058$ 179,620,948$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City recognized OPEB benefit of $46,265,723. At June 30, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience -$ 6,072,731$
Net difference between projected and actual
earnings on plan investments 981,572 -
Total 981,572$ 6,072,731$
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
2025 (367,059)$
2026 (294,436)
2027 (2,498,539)
2028 (716,578)
2029 (1,214,547)
(5,091,159)$
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
112
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, 2024, 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.
Retiree Employees' Police and Fire
Healthcare Retirement Retirement
VEBA System System Total
Net OPEB liability 12,735,372$ 45,426,246$ 151,078,058$ 209,239,676$
Deferred outflows - OPEB 21,952 35,816 981,572 1,039,340
Deferred inflows - OPEB 2,544,664 4,151,819 6,072,731 12,769,214
OPEB expense (benefit) 1,511,417 2,465,996 (46,265,723) (42,288,310)
Financial statements for individual pension and employee benefit plans:
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 2,524,400$ 728,610$ 4,771,172$ 928,172$ -$ 1,039,681$ 9,992,035$
Investments
Mutual funds 107,953,136 31,158,170 205,138,146 39,907,087 7,708,688 42,503,459 434,368,686
Domestic equities 44,392,693 12,812,922 81,538,498 15,862,306 - - 154,606,419
International equities 964,428 278,360 1,758,735 342,140 - - 3,343,663
Emerging market equities 9,435,158 2,723,240 14,571,836 2,834,770 - 1,197,625 30,762,629 Money market funds 7,599,918 2,193,540 12,562,724 2,443,923 - 225,252 25,025,357
Dividends and interest receivable 62,584 18,063 142,370 27,696 - 42,884 293,597
TOTAL ASSETS 172,932,317 49,912,905 320,483,481 62,346,094 7,708,688 45,008,901 658,392,386
LIABILITIES
Accounts payable 147,327 42,523 204,244 39,732 - - 433,826
Due to other governmental units 8,198,673 2,366,357 14,585,068 2,837,344 4,653 - 27,992,095
TOTAL LIABILITIES 8,346,000 2,408,880 14,789,312 2,877,076 4,653 - 28,425,921
NET POSITIONRestricted for:Pension benefits 164,586,317 - 305,694,169 - 7,704,035 - 477,984,521
Other postemployment benefits - 47,504,025 - 59,469,018 - 45,008,901 151,981,944
TOTAL NET POSITION 164,586,317$ 47,504,025$ 305,694,169$ 59,469,018$ 7,704,035$ 45,008,901$ 629,966,465$
Pension and Other Postemployment Benefits Trust Funds
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
113
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (concluded)
SUMMARY OPEB INFORMATION (concluded)
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 17,193,040$ 2,455,416$ 36,293,397$ 1,471,511$ 943,685$ 2,921,065$ 61,278,114$
Interest income (loss) 32,171 - (24,168) - - 1,597,146 1,605,149
Investment expenses (772,664) - (1,210,826) - - - (1,983,490)
Net investment income 16,452,547 2,455,416 35,058,403 1,471,511 943,685 4,518,211 60,899,773
Contributions
Employer 13,793,087 11,886,843 20,638,901 13,313,395 551,413 1,492,189 61,675,828
Nonemployer 11,551,892 - - - - - 11,551,892
Plan members 1,417,258 - 3,232,535 - 560,478 - 5,210,271
Total contributions 26,762,237 11,886,843 23,871,436 13,313,395 1,111,891 1,492,189 78,437,991
TOTAL ADDITIONS 43,214,784 14,342,259 58,929,839 14,784,906 2,055,576 6,010,400 139,337,764
DEDUCTIONS
Participant benefits 24,410,966 11,071,584 39,760,974 10,063,103 - - 85,306,627
Administrative expense 86,559 151,356 113,104 365,017 193,636 119,803 1,029,475
TOTAL DEDUCTIONS 24,497,525 11,222,940 39,874,078 10,428,120 193,636 119,803 86,336,102
CHANGE IN NET POSITION 18,717,259 3,119,319 19,055,761 4,356,786 1,861,940 5,890,597 53,001,662
NET POSITION
Restricted for pension and other
postemployment benefitsBeginning of year 145,869,058 44,384,706 286,638,408 55,112,232 5,842,095 39,118,304 576,964,803
End of year 164,586,317$ 47,504,025$ 305,694,169$ 59,469,018$ 7,704,035$ 45,008,901$ 629,966,465$
Changes in Pension and Other Postemployment Benefits Net Position
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 2024 amounted to $359,915.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
114
NOTE 18 - TAX ABATEMENTS (concluded)
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 2024.
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 2024 amounted to $3,278,103.
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. 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 2024 amounted to $3,178,501.
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 2024 the City contributed $20,000. 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 distribution 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, 2024, the fund has a value of $1,834,940.
NOTE 20 - LEASE RECEIVABLE
The City leases one of its buildings to a third party. The lease is for 20 years and the City will receive annual
payments of $24,600, increasing by 2.5% annually. The City recognized $15,159 in lease revenue and $9,441 in
interest revenue during the current fiscal year related to this lease. As of June 30, 2024, the City’s receivable for
lease payments was $401,310. Also, the City has deferred the inflow of resources associated with this lease that
will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of
resources was $404,343.
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
115
NOTE 21 - UPCOMING ACCOUNTING PRONOUNCEMENTS
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.
In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a
government to assess whether a concentration or constraint makes the government vulnerable to the risk of a
substantial impact. Additionally, this Statement requires a government to assess whether an event or events
associated with a concentration or constraint that could cause the substantial impact have occurred, have begun
to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are
issued. If a government determines that those criteria for disclosure have been met for a concentration or
constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of
financial statements to understand the nature of circumstances disclosed and the government’s vulnerability to
the risk of substantial impact. The City is currently evaluating the impact this standard will have on the financial
statements when adopted during the 2024-2025 fiscal year.
In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This Statement
establishes new accounting and financial reporting requirements - or modifies existing requirements - related
to the following:
a. Management’s discussion and analysis (MD&A);
i. Requires that the information presented in MD&A be limited to the related topics discussed in
five specific sections:
1) Overview of the Financial Statements,
2) Financial Summary,
3) Detailed Analyses,
4) Significant Capital Asset and Long-Term Financing Activity,
5) Currently Known Facts, Decisions, or Conditions;
ii. Stresses detailed analyses should explain why balances and results of operations changed rather
than simply presenting the amounts or percentages by which they changed;
iii. Removes the requirement for discussion of significant variations between original and final
budget amounts and between final budget amounts and actual results;
b. Unusual or infrequent items;
c. Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position;
i. Requires that the proprietary fund statement of revenues, expenses, and changes in fund net
position continue to distinguish between operating and nonoperating revenues and expenses
and clarifies the definition of operating and nonoperating revenues and expenses;
ii. Requires that a subtotal for operating income (loss) and noncapital subsidies be presented before
reporting other nonoperating revenues and expenses and defines subsidies;
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
116
NOTE 21 - UPCOMING ACCOUNTING PRONOUNCEMENTS (concluded)
d. Information about major component units in basic financial statements should be presented separately in
the statement of net position and statement of activities unless it reduces the readability of the statements
in which case combining statements of should be presented after the fund financial statements;
e. Budgetary comparison information should include variances between original and final budget amounts
and variances between final budget and actual amounts with explanations of significant variances
required to be presented in the notes to RSI.
The City is currently evaluating the impact this standard will have on the financial statements when adopted
during the 2025-2026 fiscal year.
In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement
requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required
by Statement No. 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-
to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and
Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the
capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96,
Subscription-based Information Technology Arrangements, also should be separately disclosed. In addition, this
Statement requires intangible assets other than those three types to be disclosed separately by major class. This
Statement also requires additional disclosures for capital assets held for sale. The City is currently evaluating
the impact this standard will have on the financial statements when adopted during the 2025-2026 fiscal year.
NOTE 22 - SUBSEQUENT EVENTS
Subsequent to year end, the City received $2,361,715 from the State of Michigan for a grant related to the MI
Local Retirement Grant Program.
117
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF LANSING
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
CONTINUED
118
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes 50,606,500$ 49,856,500$ 56,921,024$ 7,064,524$
Income taxes 39,350,000 41,685,000 42,184,295 499,295
Licenses and permits 1,824,800 1,915,303 1,871,789 (43,514)
Intergovernmental 22,424,475 25,294,475 25,096,790 (197,685)
Charges for services 9,557,300 9,871,800 11,227,405 1,355,605
Fines and forfeits 1,505,200 1,505,200 1,605,604 100,404
Interest and rents 631,195 631,192 1,137,928 506,736
Other
Donations and contributions 26,800,000 26,511,000 26,237,421 (273,579)
Miscellaneous 412,000 526,000 546,685 20,685
TOTAL REVENUES 153,111,470 157,796,470 166,828,941 9,032,471
EXPENDITURES
Current
General government
City clerk
Personnel 1,183,378 1,103,378 1,001,816 101,562
Operating 418,995 637,287 641,817 (4,530)
Total city clerk 1,602,373 1,740,665 1,643,633 97,032
Council
Personnel 760,898 745,898 745,914 (16)
Operating 115,609 265,435 188,455 76,980
Total council 876,507 1,011,333 934,369 76,964
Finance
Personnel 5,227,391 4,772,391 4,587,907 184,484
Operating 755,433 1,447,444 1,534,591 (87,147)
Total finance 5,982,824 6,219,835 6,122,498 97,337
Library rental
Operating 136,500 136,500 131,144 5,356
Human resources
Personnel 1,968,618 2,395,618 2,353,505 42,113
Operating 266,170 603,947 575,574 28,373
Total human resources 2,234,788 2,999,565 2,929,079 70,486
City supported agencies
Personnel - 1,987,434 1,894,049 93,385
Operating 618,500 3,444,217 3,037,895 406,322
618,500 5,431,651 4,931,944 499,707
Mayor
Personnel 1,932,135 1,907,135 1,900,383 6,752
Operating 121,746 355,876 357,194 (1,318)
Total mayor 2,053,881 2,263,011 2,257,577 5,434
Contingency (1,500,000) - - -
Total general government 12,005,373 19,802,560 18,950,244 852,316
CITY OF LANSING
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (continued)
YEAR ENDED JUNE 30, 2024
CONTINUED
119
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
EXPENDITURES (continued)Current (continued)JudicialPersonnel 7,452,614$ 8,201,321$ 8,032,636$ 168,685$ Operating 972,901 613,214 612,132 1,082
Total judicial 8,425,515 8,814,535 8,644,768 169,767
Public safety
Police
Personnel 45,876,734 45,581,734 45,163,231 418,503
Operating 8,709,861 8,944,942 8,367,873 577,069
Total police 54,586,595 54,526,676 53,531,104 995,572
Fire
Personnel 35,291,150 36,621,150 36,526,685 94,465
Operating 6,157,067 6,357,872 5,809,900 547,972
Total fire 41,448,217 42,979,022 42,336,585 642,437
Total public safety 96,034,812 97,505,698 95,867,689 1,638,009
Public works
Personnel 3,695,596 1,273,162 1,146,032 127,130
Operating 9,811,393 7,858,542 8,517,005 (658,463)
Total public works 13,506,989 9,131,704 9,663,037 (531,333)
Recreation and culturePersonnel 5,299,345 4,554,345 4,699,157 (144,812) Operating 3,541,310 4,035,790 4,133,320 (97,530)
Total recreation and culture 8,840,655 8,590,135 8,832,477 (242,342)
Health and welfare
Human services/community support
Operating 2,084,932 3,515,776 1,836,148 1,679,628
Community and economic development
Economic development & planning
Personnel 3,451,387 3,376,387 3,381,707 (5,320) Operating 2,820,717 3,369,382 3,508,749 (139,367)
Total economic development & planning 6,272,104 6,745,769 6,890,456 (144,687)
Neighborhood & community engagementPersonnel 1,018,426 828,426 838,832 (10,406) Operating 473,243 387,981 299,587 88,394
Total neighborhood & community engagement 1,491,669 1,216,407 1,138,419 77,988
Human relations/community services
Personnel 1,894,264 1,649,264 1,662,160 (12,896)
Operating 151,500 327,512 220,482 107,030
Total human relations/community services 2,045,764 1,976,776 1,882,642 94,134
Total community and economic development 9,809,537 9,938,952 9,911,517 27,435
CITY OF LANSING
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (concluded)
YEAR ENDED JUNE 30, 2024
120
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
EXPENDITURES (concluded)
Debt service
Principal 1,054,000$ 1,624,000$ 1,436,000$ 188,000$
Interest and fiscal charges 287,410 465,126 409,302 55,824
Total debt service 1,341,410 2,089,126 1,845,302 243,824
TOTAL EXPENDITURES 152,049,223 159,388,486 155,551,182 3,837,304
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,062,247 (1,592,016) 11,277,759 12,869,775
OTHER FINANCING SOURCES (USES)
Transfers in 8,863,216 8,863,216 8,636,220 (226,996)
Transfers out (8,065,796) (8,624,796) (8,923,630) (298,834)
TOTAL OTHER FINANCING
SOURCES (USES) 797,420 238,420 (287,410) (525,830)
NET CHANGE IN FUND BALANCE 1,859,667 (1,353,596) 10,990,349 12,343,945
Fund balance, beginning of year 29,661,497 29,661,497 29,661,497 -
Fund balance, end of year 31,521,164$ 28,307,901$ 40,651,846$ 12,343,945$
CITY OF LANSING
STATE AND FEDERAL GRANTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
121
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental -$ 30,282,882$ 30,719,070$ 436,188$
Interest and rents - - 1,716,319 1,716,319
Other revenues - 70,003 79,803 9,800
TOTAL REVENUES - 30,352,885 32,515,192 2,162,307
EXPENDITURES
Current
General government
Personnel - 413,090 182,858 230,232
Operations - 3,280,757 2,869,859 410,898
Total general government - 3,693,847 3,052,717 641,130
Public safety
Personnel - 1,450 955,643 (954,193)
Operations - 4,399,223 3,797,578 601,645
Total public safety - 4,400,673 4,753,221 (352,548)
Public works
Operations - 64,000 9,044,068 (8,980,068)
Health and welfare
Personnel - - 1,866 (1,866)
Operations - 181,593 355,432 (173,839)
Total health and welfare - 181,593 357,298 (175,705)
Community and economic development
Personnel - 258,541 144,387 114,154
Operations - 21,554,231 6,954,650 14,599,581
Total community and economic development - 21,812,772 7,099,037 14,713,735
Recreation and culture
Operations - 200,000 200,000 -
TOTAL EXPENDITURES - 30,352,885 24,506,341 5,846,544
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - 8,008,851 8,008,851
OTHER FINANCING SOURCES (USES)
Transfers in - - 278,649 278,649
Transfers out - - (8,287,500) (8,287,500)
TOTAL OTHER FINANCING
SOURCES (USES) - - (8,008,851) (8,008,851)
NET CHANGE IN FUND BALANCE - - - -
Fund balance, beginning of year - - - -
Fund balance, end of year -$ -$ -$ -$
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - EMPLOYEES’ RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS
122
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
CHANGE IN TOTAL PENSION LIABILITYService cost 3,074,831$ 2,889,649$ 2,827,879$ 2,943,847$ 2,738,099$ 2,719,559$ 2,538,487$ 2,711,461$ 2,977,084$ 2,857,948$
Interest 21,073,196 21,220,221 21,523,899 21,890,652 21,360,398 21,512,099 21,994,837 22,403,009 22,268,516 22,671,909 Difference between expected and actual experience 931,426 (2,085,433) (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 (24,410,966) (24,212,331) (24,342,091) (24,316,255) (24,106,903) (23,470,040) (23,102,224) (22,913,214) (22,860,449) (22,462,587)
Net Change in Total Pension Liability 668,487 (2,187,894) (4,463,818) 5,680,007 7,210,938 (1,798,108) (1,921,279) (17,275,496) 5,023,103 (3,355,060)
Total Pension Liability, beginning 309,969,880 312,157,774 316,621,592 310,941,585 303,730,647 305,528,755 307,450,034 324,725,530 319,702,427 323,057,487
Total Pension Liability, ending 310,638,367$ 309,969,880$ 312,157,774$ 316,621,592$ 310,941,585$ 303,730,647$ 305,528,755$ 307,450,034$ 324,725,530$ 319,702,427$
CHANGE IN PLAN FIDUCIARY NET POSITION
Contributions - employer 13,793,087$ 11,675,068$ 13,494,287$ 12,649,529$ 10,698,401$ 10,880,932$ 10,843,000$ 10,246,872$ 10,181,620$ 10,547,556$
Contributions - employee 1,417,258 1,418,513 1,289,306 1,172,409 1,286,273 1,220,657 1,230,857 1,216,519 1,088,943 1,128,120 Contributions - state grant 11,551,892 - - - - - - - - -
Net investment income (loss) 16,452,547 3,436,309 (15,129,738) 36,047,284 (540,861) 8,437,568 9,679,565 17,412,568 (2,790,190) 4,399,543
Benefit payments, including employee refunds (24,410,966) (24,212,331) (24,342,091) (24,316,255) (24,106,903) (23,470,040) (23,102,224) (22,913,214) (22,860,449) (22,462,587) Administrative expenses (86,560) (114,853) (66,474) (20,367) (34,016) (42,364) (57,822) (47,217) (126,486) (174,818)
Net Change in Plan Fiduciary Net Position 18,717,258 (7,797,294) (24,754,710) 25,532,600 (12,697,106) (2,973,247) (1,406,624) 5,915,528 (14,506,562) (6,562,186)
Plan Fiduciary Net Position, beginning 145,869,059 153,666,353 178,421,063 152,888,463 165,585,569 168,558,816 169,965,440 164,049,912 178,556,474 185,118,660
Plan Fiduciary Net Position, ending 164,586,317$ 145,869,059$ 153,666,353$ 178,421,063$ 152,888,463$ 165,585,569$ 168,558,816$ 169,965,440$ 164,049,912$ 178,556,474$
City's Net Pension Liability 146,052,050$ 164,100,821$ 158,491,421$ 138,200,529$ 158,053,122$ 138,145,078$ 136,969,939$ 137,484,594$ 160,675,618$ 141,145,953$
Plan fiduciary net position as a percentage of the
total pension liability 52.98% 47.06% 49.23% 56.35% 49.17% 54.52% 55.17% 55.28% 50.52% 55.85%
Covered payroll 21,858,025$ 27,348,422$ 24,509,599$ 26,001,896$ 24,304,971$ 23,265,437$ 22,672,891$ 20,901,389$ 23,085,894$ 19,769,460$
City's net pension liability as a percentage
of covered payroll 668.2% 600.0% 646.7% 531.5% 650.3% 593.8% 604.1% 657.8% 696.0% 714.0% Assumption changes - there were no changes in actuarial assumptions during fiscal year 2024. More details regarding actuarial assumptions can be
found in the December 31, 2023, valuation reports for each system.
Benefit changes - there were no changes to benefits in the current year.
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - EMPLOYEES’ RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
123
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contributions 13,165,598$ 12,194,686$ 12,737,487$ 12,349,529$ 10,698,401$ 10,880,932$ 10,185,060$ 10,246,872$ 10,181,620$ 10,547,556$
Contributions in relation to the actuarially
determined contribution 13,793,087 11,675,068 12,737,487 12,349,529 10,698,401 10,880,932 10,843,000 10,246,872 10,181,620 10,547,556
Contribution deficiency (excess) (627,489)$ 519,618$ -$ -$ -$ -$ (657,940)$ -$ -$ -$
Covered payroll 21,858,025$ 27,348,422$ 24,509,899$ 26,001,896$ 24,304,971$ 23,265,437$ 22,672,891$ 20,901,389$ 23,085,894$ 19,769,460$
Contributions as a percentage of
covered payroll 63.10% 42.69% 51.97% 47.49% 44.02% 46.77% 47.82% 49.02% 44.10% 53.35% 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 Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2023, rolled forward to June 30, 2024, 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).
The actuarial assumptions used in the December 31, 2023 valuation were based on the 2015-2019 experience study.
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - EMPLOYEES’ RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST TEN FISCAL YEARS
124
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Annual money-weighted rate of return,
net of investment expense 10.97% 2.29% -8.82% 24.71% -0.34% 5.17% 5.87% 10.91% -1.60% 2.43%
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS
125
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015CHANGE IN TOTAL PENSION LIABILITY
Service cost 7,023,797$ 7,853,786$ 7,269,988$ 6,961,705$ 6,526,273$ 6,801,669$ 6,533,877$ 6,133,683$ 6,371,845$ 6,350,378$
Interest 35,852,495 34,431,238 33,647,916 32,984,834 32,689,419 31,573,535 30,641,722 30,519,676 30,197,513 29,159,382 Changes of benefit terms - 295,273 - - - - 779 - - -
Difference between expected and actual experience 9,526,686 17,292,601 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 (39,760,974) (37,717,498) (36,188,116) (35,040,363) (33,987,421) (32,609,254) (31,757,151) (31,102,186) (29,503,964) (27,969,021)
Net Change in Total Pension Liability 12,642,004 22,155,400 11,371,210 25,986,873 4,165,734 16,355,980 15,329,894 11,321,648 18,230,902 10,700,735
Total Pension Liability, beginning 525,035,189 502,879,789 491,508,579 465,521,706 461,355,972 444,999,992 429,670,098 418,348,450 400,117,548 389,416,813
Total Pension Liability, ending 537,677,193$ 525,035,189$ 502,879,789$ 491,508,579$ 465,521,706$ 461,355,972$ 444,999,992$ 429,670,098$ 418,348,450$ 400,117,548$
CHANGE IN PLAN FIDUCIARY NET POSITION
Contributions - employer 20,638,901$ 18,165,988$ 19,609,552$ 18,250,155$ 15,457,647$ 13,554,239$ 12,686,000$ 11,521,768$ 10,884,312$ 11,050,091$
Contributions - employee 3,232,535 2,967,886 2,722,350 3,207,122 3,459,452 3,485,891 2,650,019 2,840,914 2,608,214 2,950,832
Net investment income (loss) 35,058,403 13,936,766 (32,083,115) 68,910,089 1,047,240 17,943,950 19,937,149 32,116,305 (6,040,910) 8,965,080
Benefit payments, including employee refunds (39,760,974) (37,717,498) (36,188,116) (35,040,363) (33,987,421) (32,609,254) (31,757,151) (31,102,186) (29,503,964) (27,969,021) Administrative expenses (113,104) (126,049) (88,992) (24,177) (41,599) (53,318) (77,237) (50,996) (128,903) (173,849)
Net Change in Plan Fiduciary Net Position 19,055,761 (2,772,907) (46,028,321) 55,302,826 (14,064,681) 2,321,508 3,438,780 15,325,805 (22,181,251) (5,176,867)
Plan Fiduciary Net Position, beginning 286,638,408 289,411,315 335,439,636 280,136,810 294,201,491 291,879,983 288,441,203 273,115,398 295,296,649 300,473,516
Plan Fiduciary Net Position, ending 305,694,169$ 286,638,408$ 289,411,315$ 335,439,636$ 280,136,810$ 294,201,491$ 291,879,983$ 288,441,203$ 273,115,398$ 295,296,649$
City's Net Pension Liability 231,983,024$ 238,396,781$ 213,468,474$ 156,068,943$ 185,384,896$ 167,154,481$ 153,120,009$ 141,228,895$ 145,233,052$ 104,820,899$
Plan fiduciary net position as a percentage of the
total pension liability 56.85% 54.59% 57.55% 68.25% 60.18% 63.77% 65.59% 67.13% 65.28% 73.80%
Covered payroll 27,834,051$ 33,120,012$ 31,354,796$ 29,636,017$ 28,977,408$ 29,638,532$ 28,435,952$ 27,585,521$ 27,078,405$ 24,407,740$
City's net pension asset as a percentage
of covered payroll 833.5% 719.8% 680.8% 526.6% 639.8% 564.0% 538.5% 512.0% 536.3% 429.5% Assumption changes - there were no changes in actuarial assumptions during fiscal year 2024. More details regarding actuarial assumptions can be
found in the December 31, 2023, valuation reports for each system.
Benefit changes - there were no changes to benefits in the current year.
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
126
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contributions 20,638,901$ 18,165,988$ 18,263,635$ 16,950,155$ 15,457,647$ 13,554,239$ 12,562,547$ 11,521,768$ 10,884,312$ 11,050,091$
Contributions in relation to the actuarially
determined contribution 20,638,901 18,165,988 18,263,635 16,950,155 15,457,647 13,554,239 12,686,000 11,521,768 10,884,312 11,050,091
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ (123,453)$ -$ -$ -$
Covered payroll 27,834,051$ 33,120,012$ 31,354,796$ 29,636,017$ 28,977,408$ 29,638,532$ 28,435,952$ 27,585,521$ 27,078,405$ 24,407,740$
Contributions as a percentage of
covered payroll 74.15% 54.85% 58.25% 57.19% 53.34% 45.73% 44.61% 41.77% 40.20% 45.27% 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 Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2023, rolled forward to June 30, 2024, 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 (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, 2023 valuation were based on the 2015-2019 experience study.
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST TEN FISCAL YEARS
127
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Annual money-weighted rate of return,
net of investment expense 11.65% 4.84% -9.86% 25.50% 0.37% 6.30% 7.10% 12.06% -2.09% 3.04%
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - VEBA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST FISCAL YEAR (ULTIMATELY TEN FISCAL YEARS WILL BE DISPLAYED)
128
2024
CHANGE IN TOTAL OPEB LIABILITY
Service cost 643,122$
Interest 4,135,397
Difference between expected and actual return on investments (3,816,996)
Net Change in Total OPEB Liability 961,523
Total OPEB Liability, beginning 56,782,750
Total OPEB Liability, ending 57,744,273$
CHANGE IN PLAN FIDUCIARY NET POSITION
Employer contributions 1,492,189$
OPEB plan net investment income 4,518,211
Administrative expenses (119,803)
Net Change in Plan Fiduciary Net Position 5,890,597
Plan Fiduciary Net Position, beginning 39,118,304
Plan Fiduciary Net Position, ending 45,008,901$
Plan's Net OPEB Liability 12,735,372$
Plan fiduciary net position as a percentage
of the total OPEB liability 77.95%
Covered payroll 11,539,732$
Plan's net OPEB liability as a percentage of covered payroll 110.36%
This schedule is being built prospectively. Ultimately, ten years of data will be presented.
Assumption changes - there were no changes of assumptions in 2024.
Benefit changes - there were no changes to benefits in 2024.
Note: The VEBA other postemployment benefit plan was previously reported with the ERS other
postemployment benefit plan.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - VEBA
SCHEDULE OF CONTRIBUTIONS
LAST FISCAL YEAR (ULTIMATELY TEN FISCAL YEARS WILL BE DISPLAYED)
129
2024
Actuarially determined contributions 1,960,255$
Contributions in relation to the actuarially
determined contribution 1,492,189
Contribution deficiency 468,066$
Covered payroll 11,539,732$
Contributions as a percentage of covered payroll 12.9%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, rolled forward to June
30, 2024, 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-2021.
The actuarial assumptions used in the January 1, 2023, valuation were based on the 2015-2019 experience
study.
Note: The VEBA other postemployment benefit plan was previously reported with the ERS other
postemployment benefit plan.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - VEBA
SCHEDULE OF INVESTMENT RETURNS
LAST FISCAL YEAR (ULTIMATELY TEN FISCAL YEARS WILL BE DISPLAYED)
130
2024
Annual money-weighted rate of return,
net of investment expense 10.74%
This schedule is being built prospectively. Ultimately, ten years of data will be presented.
Note: The VEBA other postemployment benefit plan was previously reported with the ERS other
postemployment benefit plan.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - EMPLOYEES’ RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST EIGHT MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
131
2024 2023* 2022* 2021* 2020* 2019* 2018* 2017*CHANGE IN TOTAL OPEB LIABILITY
Service cost 1,049,303$ 1,647,129$ 1,603,045$ 1,560,141$ 1,518,385$ 1,477,747$ 1,438,197$ 1,550,428$
Interest 6,747,227 10,762,261 10,562,939 11,335,921 13,143,168 12,990,219 13,221,134 12,976,683 Difference between expected and actual return on investments (6,227,729) - - (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 (11,071,584) (10,410,016) (8,350,052) (9,395,594) (10,444,878) (10,573,488) (10,286,249) (10,116,593)
Net Change in Total OPEB Liability (9,502,783) 1,999,374 3,815,932 (102,719,637) 24,704,778 7,508,910 (7,676,584) 4,410,518
Total OPEB Liability, beginning 102,433,054 157,216,430 153,400,498 256,120,135 231,415,357 223,906,447 231,583,031 227,172,513
Total OPEB Liability, ending 92,930,271$ 159,215,804$ 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 11,886,843$ 12,126,259$ 10,643,555$ 10,424,468$ 11,461,488$ 11,848,485$ 11,436,222$ 11,305,756$
OPEB plan net investment income (loss) 2,455,416 12,596,837 (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 (11,071,584) (10,410,016) (8,350,052) (9,395,594) (10,444,878) (10,573,488) (10,286,249) (10,116,593) Administrative expenses (151,356) (697,661) (611,703) (728,874) (636,610) (548,939) (444,973) (389,163)
Net Change in Plan Fiduciary Net Position 3,119,319 13,615,419 (9,642,322) 11,301,355 4,746,514 3,766,741 5,034,577 6,009,669
Plan Fiduciary Net Position, beginning 44,384,706 69,887,591 79,529,913 68,228,558 63,482,044 59,715,303 54,680,726 48,671,057
Plan Fiduciary Net Position, ending 47,504,025$ 83,503,010$ 69,887,591$ 79,529,913$ 68,228,558$ 63,482,044$ 59,715,303$ 54,680,726$
Plan's Net OPEB Liability 45,426,246$ 75,712,794$ 87,328,839$ 73,870,585$ 187,891,577$ 167,933,313$ 164,191,144$ 176,902,305$
Plan fiduciary net position as a percentageof the total OPEB liability 51.12% 52.45% 44.45% 51.84% 26.64% 27.43% 26.67% 23.61%
Covered payroll 18,827,984$ 26,458,716$ 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 241.27% 286.15% 326.49% 304.09% 738.16% 707.97% 772.61% 846.37%
*Includes ERS and VEBA OPEB plan activity.
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 2024.
Benefit changes - there were no changes to benefits in 2024.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - EMPLOYEES’ RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
132
2024 2023* 2022* 2021* 2020* 2019* 2018* 2017* 2016* 2015*
Actuarially determined contributions 7,165,814$ 7,313,859$ 7,100,834$ 7,100,834$ 10,504,140$ 10,198,194$ 10,910,284$ 10,582,235$ 11,447,334$ 13,270,701$
Contributions in relation to the actuarially
determined contribution 11,886,843 12,126,259 10,643,555 10,424,468 11,461,488 11,848,485 11,436,222 11,305,756 8,814,471 9,212,322
Contribution deficiency (excess) (4,721,029)$ (4,812,400)$ (3,542,721)$ (3,323,634)$ (957,348)$ (1,650,291)$ (525,938)$ (723,521)$ 2,632,863$ 4,058,379$
Covered payroll 18,827,984$ 26,458,716$ 26,747,483$ 24,292,037$ 25,435,989$ 23,720,424$ 21,251,418$ 20,901,389$ 23,085,894$ 19,769,460$
Contributions as a percentage of covered payroll 63.1% 45.8% 39.8% 42.9% 45.1% 50.0% 53.8% 54.1% 38.2% 46.6% *Includes ERS and VEBA OPEB plan activity.
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, rolled forward to June 30, 2024, 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-2021.
The actuarial assumptions used in the January 1, 2023, valuation were based on the 2015-2019 experience study.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - EMPLOYEES’ RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST EIGHT MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
133
2024 2023* 2022* 2021* 2020* 2019* 2018* 2017*
Annual money-weighted rate of return,
net of investment expense 5.34% 16.42% -15.16% 14.89% 6.63% 4.17% 7.10% 9.90%
*Includes ERS and VEBA OPEB plan activity.
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately, ten years of data will be presented.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST EIGHT MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
134
2024 2023 2022 2021 2020 2019 2018 2017
CHANGE IN TOTAL OPEB LIABILITY
Service cost 1,566,323$ 3,904,624$ 3,800,121$ 3,698,415$ 3,599,431$ 3,503,096$ 3,409,339$ 3,749,359$
Interest 14,585,580 14,158,158 13,536,620 15,112,018 15,551,609 15,565,892 15,994,328 15,584,783
Difference between expected and actual return on investments (7,287,277) - - (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 (10,063,103) (9,188,608) (7,956,471) (10,836,077) (13,132,398) (12,271,014) (11,960,557) (11,065,440)
Net Change in Total OPEB Liability (1,198,477) 8,874,174 9,380,270 (225,639,411) 116,601,160 25,450,808 (17,813,645) 8,268,702
Total OPEB Liability, beginning 211,745,553 202,871,379 193,491,109 419,130,520 302,529,360 277,078,552 294,892,197 286,623,495
Total OPEB Liability, ending 210,547,076$ 211,745,553$ 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 13,313,395$ 11,304,220$ 9,974,904$ 12,951,908$ 14,971,737$ 13,500,687$ 13,163,201$ 12,290,749$
OPEB plan net investment income (loss) 1,471,511 11,844,067 (7,645,295) 3,408,741 2,998,056 290,543 3,572,965 3,487,200
Benefit payments, including refunds of member contributions (10,063,103) (9,188,608) (7,956,471) (10,836,077) (13,132,398) (12,271,014) (11,960,557) (11,065,440)
Administrative expenses (365,017) (765,612) (672,516) (815,831) (529,339) (627,673) (600,644) (525,309)
Net Change in Plan Fiduciary Net Position 4,356,786 13,194,067 (6,299,378) 4,708,741 4,308,056 892,543 4,174,965 4,187,200
Plan Fiduciary Net Position, beginning 55,112,232 41,918,165 48,217,543 43,508,802 39,200,746 38,308,203 34,133,238 29,946,038
Plan Fiduciary Net Position, ending 59,469,018$ 55,112,232$ 41,918,165$ 48,217,543$ 43,508,802$ 39,200,746$ 38,308,203$ 34,133,238$
Plan's Net OPEB Liability 151,078,058$ 156,633,321$ 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 28.24% 26.03% 20.66% 24.92% 10.38% 12.96% 13.83% 11.57%
Covered payroll 28,983,627$ 31,220,001$ 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 521.25% 501.71% 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 2024.
Benefit changes - there were no changes to benefits in 2024.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
135
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contributions 14,366,476$ 13,573,857$ 13,178,502$ 13,178,502$ 15,674,604$ 15,218,062$ 15,968,029$ 19,759,521$ 17,276,901$ 17,923,366$
Contributions in relation to the actuarially
determined contribution 13,313,395 11,304,220 9,974,904 12,951,908 14,971,737 13,500,687 13,163,201 12,290,749 12,879,016 11,561,406
Contribution deficiency (excess) 1,053,081$ 2,269,637$ 3,203,598$ 226,594$ 702,867$ 1,717,375$ 2,804,828$ 7,468,772$ 4,397,885$ 6,361,960$
Covered payroll 28,983,627$ 31,220,001$ 27,116,594$ 29,636,017$ 29,774,287$ 28,435,953$ 20,667,007$ 27,585,521$ 27,078,405$ 24,407,740$
Contributions as a percentage of covered payroll 45.9% 36.2% 36.8% 43.7% 50.3% 47.5% 63.7% 44.6% 47.6% 47.4% Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, rolled forward to June 30, 2024, 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-2021.
The actuarial assumptions used in the January 1, 2023, valuation were based on the 2015-2019 experience study.
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST EIGHT MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
136
2024 2023 2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return,
net of investment expense 7.92% 24.41% -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.
CITY OF LANSING
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
137
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, 2024, the City incurred expenditures in the General Fund and Special Revenue
Funds as noted in excess of the amounts appropriated as follows:
Amounts Amounts
Appropriated Expended VarianceGeneral Fund
Current
General governmentCity clerk - operating 637,287$ 641,817$ 4,530$
Council - personnel 745,898 745,914 16
Finance - operating 1,447,444 1,534,591 87,147
Mayor - operating 355,876 357,194 1,318 Public works - operating 7,858,542 8,517,005 658,463
Recreation and culture - personnel 4,554,345 4,699,157 144,812
Recreation and culture - operating 4,035,790 4,133,320 97,530
Community and economic development
Economic development & planning - personnel 3,376,387 3,381,707 5,320
Economic development & planning - operating 3,369,382 3,508,749 139,367
Neighborhood & community engagement - personnel 828,426 838,832 10,406 Recreation and culture - personnel 1,649,264 1,662,160 12,896
Transfers out 8,624,796 8,923,630 298,834
State and Federal Grants Fund
Current
Public safety - personnel 1,450 955,643 954,193
Public works - operations 64,000 9,044,068 8,980,068 Health and welfare - personnel - 1,866 1,866
Health and welfare - operations 181,593 355,432 173,839
Transfers out - 8,287,500 8,287,500
CERA-MSHDA Fund
Current
Community and economic development - operations - 21,586 21,586
Major Streets Fund
Debt service 472,587 493,312 20,725
Drug Law Enforcement State and Local Fund
Current
Public safety - operations 25,250 39,541 14,291
Building Department FundCurrent
Community development - operations 714,350 725,475 11,125
Tri-County Metro FundCurrent
Public safety - operations 156,000 188,482 32,482
138
OTHER SUPPLEMENTARY INFORMATION
139
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF LANSING
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
140
Special Debt Capital
Revenue Service Projects Permanent
Funds Funds Funds Funds Total
ASSETS
Cash and cash equivalents 1,426,824$ -$ 395,214$ -$ 1,822,038$
Cash and cash equivalents - restricted - 11,168,391 19,859,021 - 31,027,412
Equity in pooled cash and investments 32,228,010 1,421,956 10,732,243 207,869 44,590,078
Investments - - - 1,846,087 1,846,087
Receivables
Accounts, net 36,363 - 4,791,433 - 4,827,796
Loans 1,185,000 - - - 1,185,000
Accrued interest 2,468,696 - - - 2,468,696
Special assessments
Current - - 383,914 - 383,914
Noncurrent - - 9,226,914 - 9,226,914
Due from other governmental units 8,001,625 - - - 8,001,625
Due from other funds 1,217,479 - 713,707 - 1,931,186
Inventories 1,461,219 - - - 1,461,219
TOTAL ASSETS 48,025,216$ 12,590,347$ 46,102,446$ 2,053,956$ 108,771,965$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts payable 2,778,461$ -$ 711,394$ -$ 3,489,855$
Accrued liabilities 53,360 - - - 53,360
Indemnity bonds 43,867 - - - 43,867
Due to other funds 1,217,479 713,707 - - 1,931,186
Due to other governmental units 93,764 - - - 93,764
Undistributed forfeitures 32,438 - - - 32,438
Unearned revenue 960,194 - 60,000 - 1,020,194
TOTAL LIABILITIES 5,179,563 713,707 771,394 - 6,664,664
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - loans and accrued interest receivable 5,831,219 - 4,725,000 - 10,556,219
Unavailable revenue - special assessments - - 9,243,949 - 9,243,949
TOTAL DEFERRED INFLOWS OF RESOURCES 5,831,219 - 13,968,949 - 19,800,168
FUND BALANCES
Nonspendable 1,461,219 - - 2,053,956 3,515,175
Restricted 34,200,572 11,876,640 22,297,706 - 68,374,918
Committed 1,352,643 - 9,064,397 - 10,417,040
TOTAL FUND BALANCES 37,014,434 11,876,640 31,362,103 2,053,956 82,307,133
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 48,025,216$ 12,590,347$ 46,102,446$ 2,053,956$ 108,771,965$
CITY OF LANSING
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2024
141
Special Debt Capital
Revenue Service Projects Permanent
Funds Funds Funds Funds Total
REVENUES
Property taxes and special assessments 511,478$ 10,025,758$ 1,735,706$ -$ 12,272,942$
Intergovernmental 30,795,552 - 1,000,000 - 31,795,552
Charges for services 4,068,571 - 1,338,674 - 5,407,245
Fines and forfeits 167,950 - - - 167,950
Interest income and rents 1,009,183 535,496 776,692 142,392 2,463,763
Other 417,190 - 25,580 - 442,770
TOTAL REVENUES 36,969,924 10,561,254 4,876,652 142,392 52,550,222
EXPENDITURES
Current
General government 2,963,720 - - - 2,963,720
Public safety 3,552,393 - - - 3,552,393
Highways and streets 11,649,145 - - - 11,649,145
Community and economic development 2,188,032 - - - 2,188,032
Debt service
Principal 871,320 2,210,000 1,390,986 - 4,472,306
Interest and fiscal charges 240,922 8,207,235 1,154,499 - 9,602,656
Capital outlay 7,617,340 - 5,777,055 - 13,394,395
TOTAL EXPENDITURES 29,082,872 10,417,235 8,322,540 - 47,822,647
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,887,052 144,019 (3,445,888) 142,392 4,727,575
OTHER FINANCING SOURCES (USES)
Issuance of debt - - 20,000,000 - 20,000,000
Bond premium - 571,444 - - 571,444
Transfers in 7,821,563 142,263 4,714,500 - 12,678,326
Transfers out (4,382,065) - - - (4,382,065)
TOTAL OTHER FINANCING
SOURCES (USES) 3,439,498 713,707 24,714,500 - 28,867,705
NET CHANGE IN FUND BALANCES 11,326,550 857,726 21,268,612 142,392 33,595,280
Fund balances, beginning of year 25,687,884 11,018,914 10,093,491 1,911,564 48,711,853
Fund balances, end of year 37,014,434$ 11,876,640$ 31,362,103$ 2,053,956$ 82,307,133$
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
142
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.
CERA-MSHDA Grant Fund
This fund accounts for all revenues received from the CERA grant through Michigan State Housing Development Authority.
These revenues are used for projects as detailed in individual grant applications.
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.
Disaster Contingency Fund
This fund accounts for revenues received from Disaster Contingency funds and related restricted expenditures.
Opioid Settlement Fund
This fund accounts for revenues received from Opioid Settlement funds, and restricted for treatment, prevention, and
remediation.
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.
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
143
Major Streets Local Streets
CERA -
MSHDA
Drug Law
Enforcement
Federal
Drug Law
Enforcement
State and
Local
ASSETS
Cash and cash equivalents -$ -$ 538,049$ -$ 23,000$
Equity in pooled cash and investments 20,923,093 4,968,180 - 260,339 458,749
Receivables
Accounts, net 15,624 - - - -
Loans - - - - -
Accrued interest - - - - -
Due from other funds 1,217,479 - - - -
Due from other governmental units 2,244,362 617,991 400,000 - -
Inventories 1,461,219 - - - -
TOTAL ASSETS 25,861,777$ 5,586,171$ 938,049$ 260,339$ 481,749$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 949,486$ 1,382,283$ -$ 4,482$ 85,105$
Accrued payroll and related - - - - -
Indemnity bonds 43,867 - - - -
Due to other funds - - - - -
Due to other governmental units 27,382 - - - -
Undistributed forfeitures - - - - -
Unearned revenue 18,955 - 938,049 - -
TOTAL LIABILITIES 1,039,690 1,382,283 938,049 4,482 85,105
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - -
FUND BALANCES
Nonspendable 1,461,219 - - - -
Restricted 23,360,868 4,203,888 - 255,857 396,644
Committed - - - - -
TOTAL FUND BALANCES 24,822,087 4,203,888 - 255,857 396,644
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 25,861,777$ 5,586,171$ 938,049$ 260,339$ 481,749$
144
Community
Development
Block Grant
Program
Disaster
Contingency
Fund
Opioid
Settlement
Downtown
Lansing, Inc.
Building
Department
Parks
Department
Tri-County
Metro Total
-$ -$ 840,775$ -$ -$ -$ 25,000$ 1,426,824$
- 198,568 18,514 - 4,408,217 523,645 468,705 32,228,010
- - - - 20,739 - - 36,363
1,185,000 - - - - - - 1,185,000
2,468,696 - - - - - - 2,468,696
- - - - - - - 1,217,479
607,217 1,000,000 2,270,239 750,000 - - 111,816 8,001,625
- - - - - - - 1,461,219
4,260,913$ 1,198,568$ 3,129,528$ 750,000$ 4,428,956$ 523,645$ 605,521$ 48,025,216$
194,478$ -$ 70,000$ 11,794$ 63,567$ -$ 17,266$ 2,778,461$
19,849 - - 6,233 24,354 - 2,924 53,360
- - - - - - - 43,867
485,506 - - 731,973 - - - 1,217,479
100 - - - - - 66,282 93,764
- - - - - - 32,438 32,438
- - - - 3,190 - - 960,194
699,933 - 70,000 750,000 91,111 - 118,910 5,179,563
3,560,980 - 2,270,239 - - - - 5,831,219
- - - - - - - 1,461,219
- 698,568 789,289 - 4,008,847 - 486,611 34,200,572
- 500,000 - - 328,998 523,645 - 1,352,643
- 1,198,568 789,289 - 4,337,845 523,645 486,611 37,014,434
4,260,913$ 1,198,568$ 3,129,528$ 750,000$ 4,428,956$ 523,645$ 605,521$ 48,025,216$
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2024
145
Major Streets Local Streets
CERA -
MSHDA
Drug Law
Enforcement
Federal
Drug Law
Enforcement
State and
Local
REVENUES
Property taxes and special assessments 19,985$ -$ -$ -$ -$
Intergovernmental 21,415,715 3,854,458 21,586 - -
Charges for services 1,386,944 - - 96,804 -
Fines and forfeits - - - - 160,058
Interest and rents 850,450 80,722 - 11,221 19,939
Other revenues 13,100 2,125 - - -
TOTAL REVENUES 23,686,194 3,937,305 21,586 108,025 179,997
EXPENDITURES
Current
General government - - - - -
Public safety - - - 61,888 39,541
Highways and streets 6,262,988 5,386,157 - - -
Community development - - 21,586 - -
Debt service
Principal 413,070 458,250 - - -
Interest 80,242 160,680 - - -
Capital outlay 3,073,264 4,544,076 - - -
TOTAL EXPENDITURES 9,829,564 10,549,163 21,586 61,888 39,541
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 13,856,630 (6,611,858) - 46,137 140,456
OTHER FINANCING SOURCES (USES)
Transfers in - 6,992,565 - - -
Transfers out (4,382,065) - - - -
TOTAL OTHER FINANCING
SOURCES (USES) (4,382,065) 6,992,565 - - -
NET CHANGE IN FUND BALANCES 9,474,565 380,707 - 46,137 140,456
Fund balances, beginning of year 15,347,522 3,823,181 - 209,720 256,188
Fund balances, end of year 24,822,087$ 4,203,888$ -$ 255,857$ 396,644$
146
Community
Development
Block Grant
Program
Disaster
Contingency
Fund
Opioid
Settlement
Downtown
Lansing, Inc.
Building
Department
Parks
Department
Tri-County
Metro Total
-$ -$ -$ 491,493$ -$ -$ -$ 511,478$
1,867,385 1,000,000 491,044 1,705,034 - - 440,330 30,795,552
- - - - 2,584,823 - - 4,068,571
- - - - - - 7,892 167,950
- - - - - 24,124 22,727 1,009,183
299,060 - - 102,905 - - - 417,190
2,166,445 1,000,000 491,044 2,299,432 2,584,823 24,124 470,949 36,969,924
- - - 2,963,720 - - - 2,963,720
- 301,432 70,000 - 2,830,732 - 248,800 3,552,393
- - - - - - - 11,649,145
2,166,446 - - - - - - 2,188,032
- - - - - - - 871,320
- - - - - - - 240,922
- - - - - - - 7,617,340
2,166,446 301,432 70,000 2,963,720 2,830,732 - 248,800 29,082,872
(1) 698,568 421,044 (664,288) (245,909) 24,124 222,149 7,887,052
- 500,000 - 328,998 - - - 7,821,563
- - - - - - - (4,382,065)
- 500,000 - 328,998 - - - 3,439,498
(1) 1,198,568 421,044 (335,290) (245,909) 24,124 222,149 11,326,550
1 - 368,245 335,290 4,583,754 499,521 264,462 25,687,884
-$ 1,198,568$ 789,289$ -$ 4,337,845$ 523,645$ 486,611$ 37,014,434$
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
147
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes and special assessments -$ -$ 19,985$ 19,985$
Intergovernmental 11,500,000 12,500,000 21,415,715 8,915,715
Charges for services 1,125,000 1,195,000 1,386,944 191,944
Interest and rents - - 850,450 850,450
Other revenues 80,000 10,000 13,100 3,100
TOTAL REVENUES 12,705,000 13,705,000 23,686,194 9,981,194
EXPENDITURES
Current
Highways and streets
Personnel 2,954,588 2,954,588 2,748,178 206,410
Operations 3,838,878 3,838,878 3,514,810 324,068
Debt service
Principal 412,983 412,983 413,070 (87)
Interest 59,604 59,604 80,242 (20,638)
Capital outlay 4,150,000 6,402,239 3,073,264 3,328,975
TOTAL EXPENDITURES 11,416,053 13,668,292 9,829,564 3,838,728
EXCESS OF REVENUES
OVER EXPENDITURES 1,288,947 36,708 13,856,630 13,819,922
OTHER FINANCING USES
Transfers out (4,382,065) (4,382,065) (4,382,065) -
NET CHANGE IN FUND BALANCE (3,093,118) (4,345,357) 9,474,565 13,819,922
Fund balance, beginning of year 15,347,522 15,347,522 15,347,522 -
Fund balance, end of year 12,254,404$ 11,002,165$ 24,822,087$ 13,819,922$
Major Streets Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
148
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental 3,752,628$ 3,902,628$ 3,854,458$ (48,170)$
Interest and rents 150,000 - 80,722 80,722
Other revenues - - 2,125 2,125
TOTAL REVENUES 3,902,628 3,902,628 3,937,305 34,677
EXPENDITURES
Current
Highways and streets
Personnel 2,976,056 2,976,056 2,660,600 315,456
Operations 3,264,707 3,614,707 2,725,557 889,150
Debt service
Principal 458,250 458,250 458,250 -
Interest 160,680 160,680 160,680 -
Capital outlay 6,475,000 7,665,859 4,544,076 3,121,783
TOTAL EXPENDITURES 13,334,693 14,875,552 10,549,163 4,326,389
EXCESS OF REVENUES
(UNDER) EXPENDITURES (9,432,065) (10,972,924) (6,611,858) 4,361,066
OTHER FINANCING SOURCES
Transfers in 6,992,565 6,992,565 6,992,565 -
NET CHANGE IN FUND BALANCE (2,439,500) (3,980,359) 380,707 4,361,066
Fund balance, beginning of year 3,823,181 3,823,181 3,823,181 -
Fund balance, end of year 1,383,681$ (157,178)$ 4,203,888$ 4,361,066$
Local Streets Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
149
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental -$ -$ 21,586$ 21,586$
EXPENDITURES
Current
Community and economic development
Operations - - 21,586 (21,586)
NET CHANGE IN FUND BALANCE - - - -
Fund balance, beginning - - - -
Fund balance, ending -$ -$ -$ -$
CERA-MSHDA Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
150
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Charges for services -$ -$ 96,804$ 96,804$
Interest and rents - - 11,221 11,221
TOTAL REVENUES - - 108,025 108,025
EXPENDITURES
Current
Public safety - operations 186,000 186,000 61,888 124,112
NET CHANGE IN FUND BALANCE (186,000) (186,000) 46,137 232,137
Fund balance, beginning of year 209,720 209,720 209,720 -
Fund balance, end of year 23,720$ 23,720$ 255,857$ 232,137$
Drug Law Enforcement Federal Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Fines and forfeitures -$ -$ 160,058$ 160,058$
Interest and rents - - 19,939 19,939
TOTAL REVENUES - - 179,997 179,997
EXPENDITURES
Current
Public safety - operations - 25,250 39,541 (14,291)
NET CHANGE IN FUND BALANCE - (25,250) 140,456 165,706
Fund balance, beginning of year 256,188 256,188 256,188 -
Fund balance, end of year 256,188$ 230,938$ 396,644$ 165,706$
Drug Law Enforcement State and Local Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
151
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental 3,852,148$ 2,070,597$ 1,867,385$ (203,212)$
Other revenues - 1,781,551 299,060 (1,482,491)
TOTAL REVENUES 3,852,148 3,852,148 2,166,445 (1,685,703)
EXPENDITURES
Current
Community development
Personnel 1,007,117 1,007,117 787,432 219,685
Operations 2,984,111 2,984,111 1,379,014 1,605,097
TOTAL EXPENDITURES 3,991,228 3,991,228 2,166,446 1,824,782
EXCESS OF REVENUES
(UNDER) EXPENDITURES (139,080) (139,080) (1) 139,079
OTHER FINANCING SOURCES
Transfers in 139,080 139,080 - (139,080)
NET CHANGE IN FUND BALANCE - - (1) (1)
Fund balance, beginning of year 1 1 1 -
Fund balance, end of year 1$ 1$ -$ (1)$
CDBG Program Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
152
Variances with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental -$ -$ 1,000,000$ 1,000,000$
EXPENDITURES
Current
Public safety - 500,000 301,432 198,568
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (500,000) 698,568 1,198,568
OTHER FINANCING SOURCES
Transfers in - 500,000 500,000 -
NET CHANGE IN FUND BALANCE - - 1,198,568 1,198,568
Fund balance, beginning - - - -
Fund balance, ending -$ -$ 1,198,568$ 1,198,568$
Budgeted Amounts
Disaster Contingency Fund
Variances with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental -$ 440,430$ 491,044$ 50,614$
EXPENDITURES
Current
Public safety - operations - 808,675 70,000 738,675
NET CHANGE IN FUND BALANCE - (368,245) 421,044 789,289
Fund balance, beginning 368,245 368,245 368,245 -
Fund balance, ending 368,245$ -$ 789,289$ 789,289$
Budgeted Amounts
Opioid Settlement Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
153
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes and special assessments 365,000$ 365,000$ 491,493$ 126,493$
Intergovernmental 4,200,000 4,200,000 1,705,034 (2,494,966)
Other revenues 317,000 317,000 102,905 (214,095)
TOTAL REVENUES 4,882,000 4,882,000 2,299,432 (2,582,568)
EXPENDITURES
Current
General government
Personnel 443,000 443,000 386,685 56,315
Operations 3,962,087 3,962,087 2,577,035 1,385,052
TOTAL EXPENDITURES 4,405,087 4,405,087 2,963,720 1,441,367
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 476,913 476,913 (664,288) (1,141,201)
OTHER FINANCING SOURCES
Transfers in 85,000 85,000 328,998 243,998
NET CHANGE IN FUND BALANCE 561,913 561,913 (335,290) (897,203)
Fund balance, beginning of year 335,290 335,290 335,290 -
Fund balance, end of year 897,203$ 897,203$ -$ (897,203)$
Downtown Lansing, Inc. Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
154
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Charges for services 2,814,500$ 2,814,500$ 2,584,823$ (229,677)$
EXPENDITURES
Current
Public safety
Personnel 2,325,278 2,325,278 2,105,257 220,021
Operations 714,350 714,350 725,475 (11,125)
TOTAL EXPENDITURES 3,039,628 3,039,628 2,830,732 208,896
NET CHANGE IN FUND BALANCE (225,128) (225,128) (245,909) (20,781)
Fund balance, beginning of year 4,583,754 4,583,754 4,583,754 -
Fund balance, end of year 4,358,626$ 4,358,626$ 4,337,845$ (20,781)$
Building Department Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Interest and rents -$ -$ 24,124$ 24,124$
NET CHANGE IN FUND BALANCE - - 24,124 24,124
Fund balance, beginning of year 499,521 499,521 499,521 -
Fund balance, end of year 499,521$ 499,521$ 523,645$ 24,124$
Parks Department Fund
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
155
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental 400,000$ 400,000$ 440,330$ 40,330$
Fines and forfeitures 50,000 50,000 7,892 (42,108)
Interest and rents - - 22,727 22,727
TOTAL REVENUES 450,000 450,000 470,949 20,949
EXPENDITURES
Current
Public safety
Personnel - 85,000 60,318 24,682
Operations 241,000 156,000 188,482 (32,482)
TOTAL EXPENDITURES 241,000 241,000 248,800 (7,800)
NET CHANGE IN FUND BALANCE 209,000 209,000 222,149 13,149
Fund balance, beginning of year 264,462 264,462 264,462 -
Fund balance, end of year 473,462$ 473,462$ 486,611$ 13,149$
Tri-County Metro Fund
CITY OF LANSING
NONMAJOR DEBT SERVICE FUNDS
156
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 $1,780,000).
Public Safety Fund
This fund accounts for the premium related to the 2023B Capital Improvement Bond.
Ovation Fund
This fund accounts for the premium related to the Capital Improvement Bonds, Series 2023.
CITY OF LANSING
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
157
1999 Fire
Station
Public Safety
Debt Service
Ovation Debt
Service Total
ASSETS
Equity in pooled cash and investments 29,361$ 1,250,332$ 142,263$ 1,421,956$
Cash and cash equivalents - restricted - 10,596,947 571,444 11,168,391
TOTAL ASSETS 29,361$ 11,847,279$ 713,707$ 12,590,347$
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to other funds -$ -$ 713,707$ 713,707$
FUND BALANCES
Restricted 29,361 11,847,279 - 11,876,640
TOTAL LIABILITIES AND
FUND BALANCES 29,361$ 11,847,279$ 713,707$ 12,590,347$
CITY OF LANSING
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 2024
158
1999 Fire
Station
Public Safety
Debt Service
Ovation Debt
Service Total
REVENUES
Property taxes and special assessments -$ 10,025,758$ -$ 10,025,758$
Interest and rents - 535,496 - 535,496
TOTAL REVENUES - 10,561,254 - 10,561,254
EXPENDITURES
Debt service
Principal - 2,210,000 - 2,210,000
Interest and fiscal charges - 7,493,528 713,707 8,207,235
TOTAL EXPENDITURES - 9,703,528 713,707 10,417,235
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 857,726 (713,707) 144,019
OTHER FINANCING SOURCES
Bond premium - - 571,444 571,444
Transfers in - - 142,263 142,263
TOTAL OTHER FINANCING SOURCES - - 713,707 713,707
NET CHANGE IN FUND BALANCES - 857,726 - 857,726
Fund balances, beginning of year 29,361 10,989,553 - 11,018,914
Fund balances (deficit), end of year 29,361$ 11,847,279$ -$ 11,876,640$
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
159
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.
Ovation Capital Projects Fund
This fund is used to account for the capital project activity, not including financing, related to the Ovation project.
Ovation Capital Improvements Fund
This fund is used to account for the financing and capital project activity related to the Ovation project.
Other Capital Projects Fund
This fund accounts for miscellaneous capital projects.
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
160
Special
Assessments
Montgomery
Drain
Ovation Capital
Project Fund
Ovation Capital
Improvements
Other Capital
Projects Total
ASSETS
Cash and cash equivalents -$ -$ -$ -$ 395,214$ 395,214$
Cash and cash equivalents - restricted - - - 19,859,021 - 19,859,021
Equity in pooled cash and investments 72,917 1,128,184 704,983 165,839 8,660,320 10,732,243
Receivables
Accounts and loan receivable - - - - 4,791,433 4,791,433
Special assessments
Current 17,035 366,879 - - - 383,914
Noncurrent 29,230 9,197,684 - - - 9,226,914
Due from other funds - - - - 713,707 713,707
TOTAL ASSETS 119,182$ 10,692,747$ 704,983$ 20,024,860$ 14,560,674$ 46,102,446$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ -$ 117$ 711,277$ 711,394$
Unearned revenue - - - - 60,000 60,000
TOTAL LIABILITIES - - - 117 771,277 771,394
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Loans and accrued interest receivable - - - - 4,725,000 4,725,000
Special assessments 46,265 9,197,684 - - - 9,243,949
TOTAL DEFERRED INFLOWS
OF RESOURCES 46,265 9,197,684 - - 4,725,000 13,968,949
FUND BALANCES
Restricted 72,917 1,495,063 704,983 20,024,743 - 22,297,706
Committed - - - - 9,064,397 9,064,397
TOTAL FUND BALANCES 72,917 1,495,063 704,983 20,024,743 9,064,397 31,362,103
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 119,182$ 10,692,747$ 704,983$ 20,024,860$ 14,560,674$ 46,102,446$
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2024
161
Special
Assessments
Montgomery
Drain
Ovation Capital
Project Fund
Ovation Capital
Improvements
Other Capital
Projects Total
REVENUES
Property taxes and special assessments 3,169$ 1,732,537$ -$ -$ -$ 1,735,706$
Intergovernmental - - 1,000,000 - - 1,000,000
Charges for services - - - - 1,338,674 1,338,674
Interest and rents - - - 219,599 557,093 776,692
Other
Donations and contributions - - 25,580 - - 25,580
TOTAL REVENUES 3,169 1,732,537 1,025,580 219,599 1,895,767 4,876,652
EXPENDITURES
Debt service
Principal - 710,986 - - 680,000 1,390,986
Interest and fiscal charges - 773,518 - 149,500 231,481 1,154,499
Capital outlay - - 320,597 45,356 5,411,102 5,777,055
TOTAL EXPENDITURES - 1,484,504 320,597 194,856 6,322,583 8,322,540
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,169 248,033 704,983 24,743 (4,426,816) (3,445,888)
OTHER FINANCING SOURCES
Issuance of debt - - - 20,000,000 - 20,000,000
Transfers in - - - - 4,714,500 4,714,500
TOTAL OTHER FINANCING
SOURCES - - - 20,000,000 4,714,500 24,714,500
NET CHANGE IN FUND BALANCES 3,169 248,033 704,983 20,024,743 287,684 21,268,612
Fund balances, beginning of year 69,748 1,247,030 - - 8,776,713 10,093,491
Fund balances, end of year 72,917$ 1,495,063$ 704,983$ 20,024,743$ 9,064,397$ 31,362,103$
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
162
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.
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
163
Cemetery
Perpetual Care Parks Trust Total
ASSETS
Equity in pooled cash and investments 206,476$ 1,393$ 207,869$
Investments 1,846,087 - 1,846,087
TOTAL ASSETS 2,052,563$ 1,393$ 2,053,956$
FUND BALANCES
Nonspendable 2,052,563$ 1,393$ 2,053,956$
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2024
164
Cemetery
Perpetual Care Parks Trust Total
ASSETS
Equity in pooled cash and investments 206,476$ 1,393$ 207,869$
Investments 1,846,087 - 1,846,087
TOTAL ASSETS 2,052,563$ 1,393$ 2,053,956$
FUND BALANCES
Nonspendable 2,052,563$ 1,393$ 2,053,956$
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
165
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.
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
166
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
ASSETS
Current assets
Cash and cash equivalents 200$ -$ -$ -$ 200$
Equity in pooled cash and investments 551,739 7,761 2,893,803 2,753,086 6,206,389
Accounts receivable, net - - 447,421 - 447,421
Inventories 52,521 - - - 52,521
Total current assets 604,460 7,761 3,341,224 2,753,086 6,706,531
Noncurrent assets
Capital assets not being depreciated 57,740 345,647 - - 403,387
Capital assets being depreciated, net 38,088 1,472,014 - 5,367 1,515,469
Total noncurrent assets 95,828 1,817,661 - 5,367 1,918,856
TOTAL ASSETS 700,288 1,825,422 3,341,224 2,758,453 8,625,387
DEFERRED OUTFLOW OF RESOURCES
Deferred outflows of resources related to pension 43,057 - 112,579 141,261 296,897
Deferred outflows of resources related to OPEB 442 - 1,155 1,450 3,047
TOTAL DEFERRED OUTFLOWS OF RESOURCES 43,499 - 113,734 142,711 299,944
LIABILITIES
Current liabilities
Accounts payable 34,138 - 204,242 600,494 838,874
Accrued payroll 1,496 - - - 1,496
Current portion of compensated absences 758 - 1,846 2,055 4,659
Total current liabilities 36,392 - 206,088 602,549 845,029
Noncurrent liabilities
Compensated absences, net of current portion 27,719 - 82,897 92,288 202,904
Net pension liability 1,117,265 - 2,921,264 3,665,528 7,704,057
Net other postemployment benefit liability 444,923 - 1,163,321 1,459,706 3,067,950
Total noncurrent liabilities 1,589,907 - 4,167,482 5,217,522 10,974,911
TOTAL LIABILITIES 1,626,299 - 4,373,570 5,820,071 11,819,940
DEFERRED INFLOW OF RESOURCES
Deferred inflows of resources related to pension 5,318 - 13,904 17,446 36,668
Deferred inflows of resources related to OPEB 51,227 - 133,940 168,064 353,231
TOTAL DEFERRED INFLOWS OF RESOURCES 56,545 - 147,844 185,510 389,899
NET POSITION (DEFICIT)
Net investment in capital assets 95,828 1,817,661 - 5,367 1,918,856
Unrestricted (1,034,885) 7,761 (1,066,456) (3,109,784) (5,203,364)
TOTAL NET POSITION (DEFICIT) (939,057)$ 1,825,422$ (1,066,456)$ (3,104,417)$ (3,284,508)$
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
YEAR ENDED JUNE 30, 2024
167
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
OPERATING REVENUES
Charges for services 386,335$ -$ 4,201,763$ 4,774,154$ 9,362,252$
OPERATING EXPENSES
Personnel services - - 1,980,635 - 1,980,635
Purchase of goods and services 255,476 108,755 2,189,452 2,631,543 5,185,226
Depreciation 9,827 56,743 - 5,366 71,936
TOTAL OPERATING EXPENSES 265,303 165,498 4,170,087 2,636,909 7,237,797
OPERATING INCOME (LOSS) 121,032 (165,498) 31,676 2,137,245 2,124,455
NONOPERATING REVENUES
Interest revenue - - - 142,552 142,552
CHANGE IN NET POSITION 121,032 (165,498) 31,676 2,279,797 2,267,007
Net position (deficit), beginning of year (1,060,089) 1,990,920 (1,098,132) (5,384,214) (5,551,515)
Net position (deficit), end of year (939,057)$ 1,825,422$ (1,066,456)$ (3,104,417)$ (3,284,508)$
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2024
168
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 386,335$ -$ 3,754,445$ 4,774,154$ 8,914,934$
Cash payments for good and services (259,470) (108,755) (2,051,161) (2,567,310) (4,986,696)
Cash payments to employees (617,683) - (1,303,073) (1,852,614) (3,773,370)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (490,818) (108,755) 400,211 354,230 154,868
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends received (loss) - - - 142,552 142,552
NET CHANGE IN CASH AND
CASH EQUIVALENTS (490,818) (108,755) 400,211 496,782 297,420
Cash and cash equivalents, beginning of year 1,042,757 116,516 2,493,592 2,256,304 5,909,169
Cash and cash equivalents, end of year 551,939$ 7,761$ 2,893,803$ 2,753,086$ 6,206,589$
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities
Operating income (loss) 121,032$ (165,498)$ 31,676$ 2,137,245$ 2,124,455$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Depreciation 9,827 56,743 - 5,366 71,936
Changes in:
Accounts receivable - - (447,318) - (447,318)
Inventory (2,241) - - - (2,241)
Deferred outflows - pension 89,706 - 98,326 283,405 471,437
Deferred outflows - OPEB 14,137 - 22,005 45,184 81,326
Accounts payable (1,753) - 138,291 64,233 200,771
Accrued payroll 126 - (1,173) (2,534) (3,581)
Compensated absences (9,122) - 29,379 (32,469) (12,212)
Net pension liability (459,043) - 417,169 (1,376,563) (1,418,437)
Deferred inflows - pension (22,361) - (30,066) (71,088) (123,515)
Net other postemployment benefit liability (282,353) - 7,982 (866,613) (1,140,984)
Deferred inflows - OPEB 51,227 - 133,940 168,064 353,231
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (490,818)$ (108,755)$ 400,211$ 354,230$ 154,868$
CITY OF LANSING
INTERNAL SERVICE FUNDS
169
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.
City 311 Fund
This fund accounts for the operations of the City’s 311 department.
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
170
Fleet
Maintenance
Fringe
Benefits Engineering
Information
Technology City 311 Total
ASSETS
Current assets
Equity in pooled cash and investments 11,044,715$ -$ 3,089,101$ 2,400,264$ 166,976$ 16,701,056$
Accounts receivable, net 3,512 479,370 - - - 482,882
Inventories 659,965 - - - - 659,965
Prepaids - 1,500,000 - - - 1,500,000
Total current assets 11,708,192 1,979,370 3,089,101 2,400,264 166,976 19,343,903
Noncurrent assets
Capital assets not being depreciated/amortized 92,892 - - - - 92,892
Capital assets being depreciated/amortized, net 10,536,077 - 1,251,284 3,385,281 - 15,172,642
Total noncurrent assets 10,628,969 - 1,251,284 3,385,281 - 15,265,534
TOTAL ASSETS 22,337,161 1,979,370 4,340,385 5,785,545 166,976 34,609,437
LIABILITIES
Current liabilities
Accounts payable 664,266 1,747,380 12,699 243,986 25 2,668,356
Accrued payroll 41,812 154,914 35,260 24,195 6,499 262,680
Accrued interest payable 3,167 - - - - 3,167
Claims incurred but not reported - 1,500,590 - - - 1,500,590
Due to other funds - 3,543,795 - - - 3,543,795
Current portion of:
Long-term obligations 133,311 - - 1,095,554 - 1,228,865
Compensated absences 14,839 - 61,277 3,020 132 79,268
Total current liabilities 857,395 6,946,679 109,236 1,366,755 6,656 9,286,721
Noncurrent liabilities
Long-term obligations, net of current portion 771,513 - - 2,352,983 - 3,124,496
Compensated absences, net of current portion 168,697 70,031 408,762 250,116 16,172 913,778
Total noncurrent liabilities 940,210 70,031 408,762 2,603,099 16,172 4,038,274
TOTAL LIABILITIES 1,797,605 7,016,710 517,998 3,969,854 22,828 13,324,995
NET POSITION (DEFICIT)
Net investment in capital assets 9,724,145 - 1,251,284 (63,256) - 10,912,173
Unrestricted 10,815,411 (5,037,340) 2,571,103 1,878,947 144,148 10,372,269
TOTAL NET POSITION (DEFICIT) 20,539,556$ (5,037,340)$ 3,822,387$ 1,815,691$ 144,148$ 21,284,442$
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
YEAR ENDED JUNE 30, 2024
171
Fleet
Maintenance
Fringe
Benefits Engineering
Information
Technology City 311 Total
OPERATING REVENUES
Charges for services 9,883,220$ 73,746,213$ 4,353,937$ 7,917,054$ 834,280$ 96,734,704$
Miscellaneous 31,403 131,573 - - - 162,976
TOTAL OPERATING REVENUES 9,914,623 73,877,786 4,353,937 7,917,054 834,280 96,897,680
OPERATING EXPENSES
Personnel services 2,853,496 280,595 3,337,770 2,439,287 677,226 9,588,374
Purchase of goods and services 1,503,316 84,283,713 754,313 5,389,577 165,576 92,096,495
Depreciation/amortization 2,174,229 - 44,397 1,124,066 - 3,342,692
TOTAL OPERATING EXPENSES 6,531,041 84,564,308 4,136,480 8,952,930 842,802 105,027,561
OPERATING INCOME (LOSS) 3,383,582 (10,686,522) 217,457 (1,035,876) (8,522) (8,129,881)
NONOPERATING REVENUES (EXPENSES)
Interest revenue - - - 121,521 8,633 130,154
Gain on sale of capital assets 172,718 - - - - 172,718
Interest expense and fees (13,590) - - (43,569) - (57,159)
TOTAL NONOPERATING
REVENUES (EXPENSES) 159,128 - - 77,952 8,633 245,713
INCOME (LOSS) BEFORE TRANSFERS 3,542,710 (10,686,522) 217,457 (957,924) 111 (7,884,168)
TRANSFERS
Transfer out (223,750) - - - - (223,750)
CHANGE IN NET POSITION 3,318,960 (10,686,522) 217,457 (957,924) 111 (8,107,918)
Net position, beginning of year 17,220,596 5,649,182 3,604,930 2,773,615 144,037 29,392,360
Net position (deficit), end of year 20,539,556$ (5,037,340)$ 3,822,387$ 1,815,691$ 144,148$ 21,284,442$
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2024
172
Fleet
Maintenance
Fringe
Benefits Engineering
Information
Technology City 311 Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund services 9,912,789$ 77,881,537$ 4,353,937$ 7,917,054$ 834,280$ 100,899,597$
Cash payments for goods and services (1,114,377) (84,200,966) (740,767) (5,493,416) (165,551) (91,715,077)
Cash payments to employees (2,877,996) (1,083,927) (3,273,101) (2,480,077) (677,579) (10,392,680)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 5,920,416 (7,403,356) 340,069 (56,439) (8,850) (1,208,160)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 325,998 - - - - 325,998
Purchase of capital assets (4,158,534) - - - - (4,158,534)
Principal paid on long-term obligations (131,463) - - (1,075,633) - (1,207,096)
Interest paid on long-term obligations (14,050) - - (43,569) - (57,619)
Transfers out (223,750) - - - - (223,750)
NET CASH (USED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES (4,201,799) - - (1,119,202) - (5,321,001)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received - - - 121,521 8,633 130,154
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,718,617 (7,403,356) 340,069 (1,054,120) (217) (6,399,007)
Cash and cash equivalents, beginning of year 9,326,098 7,403,356 2,749,032 3,454,384 167,193 23,100,063
Cash and cash equivalents, end of year 11,044,715$ -$ 3,089,101$ 2,400,264$ 166,976$ 16,701,056$
Reconciliation of operating income to net cash
provided by operating activities
Operating income (loss) 3,383,582$ (10,686,522)$ 217,457$ (1,035,876)$ (8,522)$ (8,129,881)$
Adjustments to reconcile operating income to
net cash provided by operating activities
Depreciation/amortization 2,174,229 - 44,397 1,124,066 - 3,342,692
Change in:
Accounts receivable (1,834) (476,037) - 168 - (477,703)
Prepaids - 7,156 - - - 7,156
Inventories (129,364) - - - - (129,364)
Accounts payable 518,303 75,591 13,546 (104,007) 25 503,458
Due to other funds - 3,543,795 - - 3,543,795
Accrued payroll (1,633) 9,832 6,157 729 (476) 14,609
Claims incurred but not reported - 120,590 - - - 120,590
Compensated absences (22,867) 2,239 58,512 (41,519) 123 (3,512)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 5,920,416$ (7,403,356)$ 340,069$ (56,439)$ (8,850)$ (1,208,160)$
CITY OF LANSING
FIDUCIARY FUNDS
173
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.
CITY OF LANSING
FIDUCIARY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
174
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 2,524,400$ 728,610$ 4,771,172$ 928,172$ -$ 1,039,681$ 9,992,035$
Investments
Mutual funds 107,953,136 31,158,170 205,138,146 39,907,087 7,708,688 42,503,459 434,368,686
Domestic equities 44,392,693 12,812,922 81,538,498 15,862,306 - - 154,606,419
International equities 964,428 278,360 1,758,735 342,140 - - 3,343,663
Emerging market equities 9,435,158 2,723,240 14,571,836 2,834,770 - 1,197,625 30,762,629
Money market funds 7,599,918 2,193,540 12,562,724 2,443,923 - 225,252 25,025,357
Dividends and interest receivable 62,584 18,063 142,370 27,696 - 42,884 293,597
TOTAL ASSETS 172,932,317 49,912,905 320,483,481 62,346,094 7,708,688 45,008,901 658,392,386
LIABILITIES
Accounts payable 147,327 42,523 204,244 39,732 - - 433,826
Due to other governmental units 8,198,673 2,366,357 14,585,068 2,837,344 4,653 - 27,992,095
TOTAL LIABILITIES 8,346,000 2,408,880 14,789,312 2,877,076 4,653 - 28,425,921
NET POSITION
Restricted for:
Pension benefits 164,586,317 - 305,694,169 - 7,704,035 - 477,984,521 Other postemployment benefits - 47,504,025 - 59,469,018 - 45,008,901 151,981,944
TOTAL NET POSITION 164,586,317$ 47,504,025$ 305,694,169$ 59,469,018$ 7,704,035$ 45,008,901$ 629,966,465$
Pension and Other Postemployment Benefits Trust Funds
CITY OF LANSING
FIDUCIARY FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2024
175
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 TotalsADDITIONS
Investment income
Net appreciation (decrease) in fair
value of investments 17,193,040$ 2,455,416$ 36,293,397$ 1,471,511$ 943,685$ 2,921,065$ 61,278,114$
Interest income (loss) 32,171 - (24,168) - - 1,597,146 1,605,149
Investment expenses (772,664) - (1,210,826) - - - (1,983,490)
Net investment income 16,452,547 2,455,416 35,058,403 1,471,511 943,685 4,518,211 60,899,773
Contributions
Employer 13,793,087 11,886,843 20,638,901 13,313,395 551,413 1,492,189 61,675,828
Nonemployer 11,551,892 - - - - - 11,551,892
Plan members 1,417,258 - 3,232,535 - 560,478 - 5,210,271
Total contributions 26,762,237 11,886,843 23,871,436 13,313,395 1,111,891 1,492,189 78,437,991
TOTAL ADDITIONS 43,214,784 14,342,259 58,929,839 14,784,906 2,055,576 6,010,400 139,337,764
DEDUCTIONS
Participant benefits 24,410,966 11,071,584 39,760,974 10,063,103 - - 85,306,627
Administrative expense 86,559 151,356 113,104 365,017 193,636 119,803 1,029,475
TOTAL DEDUCTIONS 24,497,525 11,222,940 39,874,078 10,428,120 193,636 119,803 86,336,102
CHANGE IN NET POSITION 18,717,259 3,119,319 19,055,761 4,356,786 1,861,940 5,890,597 53,001,662
NET POSITION
Restricted for pension and otherpostemployment benefits
Beginning of year 145,869,058 44,384,706 286,638,408 55,112,232 5,842,095 39,118,304 576,964,803
End of year 164,586,317$ 47,504,025$ 305,694,169$ 59,469,018$ 7,704,035$ 45,008,901$ 629,966,465$
Changes in Pension and Other Postemployment Benefits Net Position
CITY OF LANSING
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
176
54-A District Current Tax
Court Collection Total
ASSETS
Equity in pooled cash and investments 127,435$ -$ 127,435$
LIABILITIES
Due to individuals and agencies 127,435 - 127,435
NET POSITION
Restricted for individuals and agencies -$ -$ -$
CITY OF LANSING
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2024
177
54-A District Current Tax
Court Collections Total
ADDITIONS TO NET POSITION
Collections from or on behalf of individuals 588,434$ -$ 588,434$
Collections of taxes for other governments - 137,494,653 137,494,653
TOTAL ADDITIONS 588,434 137,494,653 138,083,087
DEDUCTIONS FROM NET POSITION
Payments to or on behalf of individuals 588,434 - 588,434
Payment of taxes collected for other governments - 137,494,653 137,494,653
TOTAL DEDUCTIONS 588,434 137,494,653 138,083,087
NET CHANGE IN NET POSITION - - -
Net position, beginning of year - - -
Net position, end of year -$ -$ -$
178
STATISTICAL SECTION
179
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.
Financial Trends
These schedules contain trend information to help the reader
Page
(Tables 1-4) understand how the City’s financial performance and well-being
have changed over time.
180
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. 185
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. 189
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. 194
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. 196
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive
financial reports for the relevant year.
CITY OF LANSING
NET POSITION BY COMPONENT
2015-2024
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
180
Table 1
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities Net investment in capital assets 151,785,916$ 149,676,860$ 149,533,948$ 148,263,240$ 146,153,309$ 143,583,186$ 153,733,211$ 159,442,216$ 152,933,894$ 176,420,751$
Restricted 12,311,541 12,922,525 10,993,950 15,189,723 23,505,738 20,495,617 24,518,910 28,101,348 42,209,665 58,248,755
Unrestricted (251,453,207) (265,678,371) (276,790,945) (606,529,375) (629,587,773) (674,087,826) (603,922,567) (578,995,034) (531,190,813) (471,192,524)
Total governmental activities net position (87,355,750)$ (103,078,986)$ (116,263,047)$ (443,076,412)$ (459,928,726)$ (510,009,023)$ (425,670,446)$ (391,451,470)$ (336,047,254)$ (236,523,018)$
Business-type activities Net investment in capital assets 218,813,478$ 220,436,882$ 224,161,744$ 227,127,434$ 233,988,263$ 234,126,397$ 219,824,056$ 232,446,124$ 227,979,176$ 235,698,400$
Restricted 2,889,096 2,764,963 1,818,671 1,886,620 1,953,175 2,432,963 2,437,390 2,441,780 2,486,846 2,555,433
Unrestricted 17,242,167 19,401,320 25,415,447 (13,854,833) (7,299,147) (13,397,777) 19,032,067 21,195,582 39,837,334 49,776,732
Total business-type activities net position 238,944,741$ 242,603,165$ 251,395,862$ 215,159,221$ 228,642,291$ 223,161,583$ 241,293,513$ 256,083,486$ 270,303,356$ 288,030,565$
Primary government
Net investment in capital assets 370,599,394$ 370,113,742$ 373,695,692$ 375,390,674$ 380,141,572$ 377,709,583$ 373,557,267$ 391,888,340$ 380,913,070$ 412,119,151$ Restricted 15,200,637 15,687,488 12,812,621 17,076,343 25,458,913 22,928,580 26,956,300 30,543,128 44,696,511 60,804,188
Unrestricted (234,211,040) (246,277,051) (251,375,498) (620,384,208) (636,886,920) (687,485,603) (584,890,500) (557,799,452) (491,353,479) (421,415,792)
Total primary government net position 151,588,991$ 139,524,179$ 135,132,815$ (227,917,191)$ (231,286,435)$ (286,847,440)$ (184,376,933)$ (135,367,984)$ (65,743,898)$ 51,507,547$ 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.
CITY OF LANSING
CHANGES IN NET POSITION
2015-2024
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
181
Table 2
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024ExpensesGovernmental activities
General government 25,225,893$ 27,993,414$ 21,778,154$ 16,995,976$ 26,679,840$ $30,400,643 11,196,979$ 19,628,516$ 20,719,165$ 21,814,859$
Judicial - - - - - - - - 4,437,374 7,054,673
Health and welfare - - - - - - - - 6,658,603 1,938,213 Public safety 81,827,437 85,739,408 91,829,441 87,352,251 97,391,612 121,102,641 57,170,988 78,113,026 88,377,091 57,755,851 Public works 27,815,970 28,212,049 28,983,891 26,485,877 29,644,398 35,288,254 32,334,504 27,316,002 16,436,242 34,560,876
Recreation and culture 6,515,590 10,336,168 9,441,519 8,302,243 7,650,889 11,238,934 4,125,852 6,707,099 13,784,687 10,664,726
Community and economic development 10,270,404 10,642,102 12,349,663 16,150,417 21,046,090 20,731,730 34,764,843 75,618,986 18,257,010 15,909,940
Interest on long-term debt 1,291,846 1,424,215 1,201,846 1,137,561 1,182,488 733,925 1,072,610 1,845,964 2,993,891 9,387,497
Total governmental activities expenses 152,947,140 164,347,356 165,584,514 156,424,325 183,595,317 219,496,127 140,665,776 209,229,593 171,664,063 159,086,635
Business-type activities
Sewage disposal system 27,506,843 28,487,957 27,567,228 28,552,143 31,939,976 32,605,664 20,828,495 22,239,978 30,964,460 27,098,938 Municipal parking system 7,605,461 7,651,077 6,866,747 9,888,246 7,081,998 12,716,606 3,183,095 10,110,065 6,717,635 8,016,197
Cemetery 632,485 708,545 886,579 1,379,877 470,220 1,652,255 300,009 98,394 703,931 265,303
Golf 852,634 845,575 802,564 (372,775) 278,501 229,467 198,889 164,878 165,530 165,498
Garbage and rubbish collection 1,712,671 2,085,728 1,543,380 3,101,893 1,035,262 2,431,066 1,753,713 1,509,140 2,425,495 4,170,087
Recycling 3,623,276 4,092,278 3,667,899 3,859,496 3,856,764 5,576,963 2,613,739 1,656,519 4,005,120 2,636,909
Total business-type activities expenses 41,933,370 43,871,160 41,334,397 46,408,880 44,662,721 55,212,021 28,877,940 35,778,974 44,982,171 42,352,932
Total primary government expenses 194,880,510$ 208,218,516$ 206,918,911$ 202,833,205$ 228,258,038$ 274,708,148$ 169,543,716$ 245,008,567$ 216,646,234$ 201,439,567$
Program RevenuesGovernmental activities
Charges for services
General government 6,815,975$ 7,279,427$ 7,295,556$ 7,038,702$ 7,567,720$ $7,616,658 10,158,500$ 9,406,822$ 13,093,046$ 23,247,155$
Public safety 3,344,183 2,909,054 3,476,966 4,140,682 3,935,250 4,770,026 3,553,105 4,423,872 237,161 188,724 Public works 1,923,303 3,011,894 1,836,466 716,322 2,978,549 536,961 560,343 1,165,080 732,020 680,959 Recreation and culture 619,834 673,840 617,604 831,816 1,092,232 1,038,740 1,188,287 1,192,891 - -
Community and economic development 67,264 67,272 67,312 - - - - - 2,931,128 -
Operating grants and contributions 24,658,955 24,561,960 25,157,629 28,983,936 29,663,253 28,534,469 61,065,241 90,177,926 70,476,683 59,174,797
Capital grants and contributions 2,910,660 904,298 63,488 855,760 3,313,872 285,075 15,693,491 5,283,332 1,490,181 7,674,594
Total governmental activities program revenues 40,340,174 39,407,745 38,515,021 42,567,218 48,550,876 42,781,929 92,218,967 111,649,923 88,960,219 90,966,229
Business-type activities
Charges for servicesSewage disposal system 31,730,416 32,368,491 34,755,896 35,107,570 35,752,812 34,968,585 38,471,972 35,943,034 38,710,464 39,752,999
Municipal parking system 6,988,879 7,090,335 6,906,091 7,436,552 8,422,161 6,211,685 2,710,377 5,101,852 5,018,385 5,731,892
Cemetery 335,379 312,929 403,663 351,204 415,757 403,030 558,744 526,299 487,209 386,335
Golf 363,559 313,164 256,218 179,464 - 3,091 - - - -
Garbage and rubbish collection 1,744,999 1,871,665 1,952,897 2,072,454 2,243,627 2,278,024 2,796,524 3,246,590 3,333,884 4,201,763 Recycling 3,624,671 3,627,070 3,614,794 3,779,468 4,081,700 4,376,310 4,504,054 4,455,510 4,553,007 4,774,154
Operating grants and contributions 1,143,085 1,312,362 1,391,326 1,603,942 6,648,917 2,000,000 - - - -
Capital grants and contributions - - 100,000 - - - - - 5,000,000 -
Total business-type activities program revenues 45,930,988 46,896,016 49,380,885 50,530,654 57,564,974 50,240,725 49,041,671 49,273,285 57,102,949 54,847,143
Total primary government program revenues 86,271,162$ 86,303,761$ 87,895,906$ 93,097,872$ 106,115,850$ $93,022,654 141,260,638$ 160,923,208$ 146,063,168$ 145,813,372$
Net (Expense) Revenue
Governmental activities (112,606,966)$ (124,939,611)$ (127,069,493)$ (113,857,107)$ (135,044,441)$ (176,714,198)$ (48,446,809)$ (97,579,670)$ (82,703,844)$ (68,120,406)$ Business-type activities 3,997,618 3,024,856 8,046,488 4,121,774 12,902,253 (4,971,296) 20,163,731 13,494,311 12,120,778 12,494,211
Total primary government net expense (108,609,348)$ (121,914,755)$ (119,023,005)$ (109,735,333)$ (122,142,188)$ (181,685,494)$ (28,283,078)$ (84,085,359)$ (70,583,066)$ (55,626,195)$
CITY OF LANSING
CHANGES IN NET POSITION (concluded)
2015-2024
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
182
Table 2
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024General Revenues and Other Changes in Net Position
Governmental activities
General revenuesProperty taxes 39,657,382$ 38,578,548$ 40,568,278$ 39,573,468$ 41,692,930$ $41,675,711 45,690,419$ 47,620,607$ 47,447,205$ 65,740,941$
Income taxes 31,660,923 34,573,130 35,694,010 38,455,296 37,021,436 37,438,724 37,005,040 37,087,593 40,957,011 42,027,787
Unrestricted grants contributions 36,330,976 36,532,275 38,108,544 39,419,658 39,530,073 42,029,100 46,503,607 47,820,068 47,216,650 47,725,948 Unrestricted investment earnings 26,353 99,058 125,539 216,239 463,685 707,383 187,320 (94,154) 3,211,843 10,901,323
Miscellaneous 280,280 63,079 135,270 - 64,820 91,088 177,521 (38,468) 18,602 1,472,393
Transfers - internal activities (644,485) (629,715) (746,209) (912,186) (580,817) 4,691,895 3,221,479 (597,000) (743,251) (223,750)
Total governmental activities 107,311,429 109,216,375 113,885,432 116,752,475 118,192,127 126,633,901 132,785,386 131,798,646 138,108,060 167,644,642
Business-type activities
Unrestricted investment earnings 17,874 - - - - 2,061,667 1,189,678 698,662 1,216,752 4,980,460
Miscellaneous - 3,853 - - - - - - 15,498 28,788 Transfers - internal activities 644,485 629,715 746,209 912,186 580,817 (4,691,895) (3,221,479) 597,000 743,251 223,750
Gain on sale of assets - - - - - 2,120,816 - - 123,591 -
Total business-type activities 662,359 633,568 746,209 912,186 580,817 (509,412) (2,031,801) 1,295,662 2,099,092 5,232,998
Total primary government 107,973,788$ 109,849,943$ 114,631,641$ 117,664,661$ 118,772,944$ 126,124,489$ 130,753,585$ 133,094,308$ 140,207,152$ 172,877,640$
Change in Net Position
Governmental activities (5,295,537)$ (15,723,236)$ (13,184,061)$ 2,895,368$ (16,852,314)$ (50,080,297)$ 84,338,577$ 34,218,976$ 55,404,216$ 99,524,236$
Business-type activities 4,659,977 3,658,424 8,792,697 5,033,960 13,483,070 (5,480,708) 18,131,930 14,789,973 14,219,870 17,727,209
Total primary government (635,560)$ (12,064,812)$ (4,391,364)$ 7,929,328$ (3,369,244)$ (55,561,005)$ 102,470,507$ 49,008,949$ 69,624,086$ 117,251,445$
CITY OF LANSING
FUND BALANCE
GOVERNMENTAL FUNDS
2015-2024
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
183
Table 3
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General fund
Nonspendable 35,424$ 492,549$ 28,342$ 39,437$ 38,605$ 185,369$ 570,654$ 759,490$ 951,644$ 1,035,441$
Restricted 10,044 - - - - - - - 7,792,610 7,792,610
Committed 837,761 428,106 385,067 283,815 - - 7,972,836 785,099 - 282,524
Assigned - - - - - - - - - 175,000 Unassigned 9,783,911 12,407,748 15,283,857 17,003,260 9,992,885 9,935,641 21,229,263 21,907,213 20,917,243 31,366,271
Total general fund 10,667,140 13,328,403 15,697,266 17,326,512 10,031,490 10,121,010 29,772,753 23,451,802 29,661,497 40,651,846
All other governmental fundsNonspendable 2,619,065 2,578,331 2,618,884 2,842,489 2,952,027 3,169,987 3,283,816 3,153,577 3,130,406 3,515,175 Restricted 6,865,580 6,934,665 4,730,012 9,009,438 17,038,777 18,550,655 21,235,094 35,877,471 208,470,546 241,078,850 Committed 7,110,485 8,427,253 10,426,961 8,837,341 9,147,988 10,637,417 2,546,040 5,192,514 8,268,306 10,417,040 Unassigned (deficit) (528,144) (410,252) (411,098) (155,261) (115,546) (82,237) - - - -
Total all other governmental funds 16,066,986 17,529,997 17,364,759 20,534,007 29,023,246 32,275,822 27,064,950 44,223,562 219,869,258 255,011,065
Total all governmental funds 26,734,126$ 30,858,400$ 33,062,025$ 37,860,519$ 39,054,736$ 42,396,832$ 56,837,703$ 67,675,364$ 249,530,755$ 295,662,911$
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.
CITY OF LANSING
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
2015-2024
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
184
Table 4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Property taxes and special assessments 39,470,249$ 38,782,759$ 40,691,325$ 39,629,305$ 41,732,645$ 41,709,020$ 45,712,919$ 48,010,607$ 47,447,205$ 69,193,966$
Income taxes 31,660,923 34,573,130 35,694,010 38,455,296 37,021,436 37,438,724 37,005,040 37,087,593 40,957,011 42,184,295
Licenses and permits 1,551,125 1,559,638 1,494,298 2,113,824 1,399,881 2,427,866 1,930,169 1,932,281 2,000,219 1,871,789
Intergovernmental revenue 36,042,377 34,175,112 36,391,761 41,848,072 45,586,152 44,166,490 77,368,957 113,084,026 85,389,115 87,611,412
Charges for services 12,900,490 14,102,447 13,230,822 12,432,770 15,235,656 13,048,934 15,525,892 15,574,570 15,887,520 16,634,650
Fines and forfeits 3,075,427 3,455,541 2,510,945 2,601,063 2,306,990 1,589,733 1,491,641 1,576,283 1,654,848 1,773,554
Interest and rents 87,035 145,011 201,367 284,165 631,812 911,454 402,443 119,690 3,428,063 11,553,772
Other 23,162,946 22,854,314 22,952,587 22,101,917 22,391,478 23,371,306 26,397,782 25,760,762 29,361,388 27,306,679
Total revenues 147,950,572 149,647,952 153,167,115 159,466,412 166,306,050 164,663,527 205,834,843 243,145,812 226,125,369 258,130,117
Expenditures
Current Expenditures
General government 21,720,206 23,386,445 23,948,368 22,281,236 27,340,931 23,111,276 19,864,962 25,473,276 22,250,278 24,966,681 Public safety 75,510,743 72,264,468 73,683,246 75,859,065 78,659,682 80,863,159 76,213,091 90,331,314 95,649,361 104,173,303
Public works 13,273,332 11,715,510 11,201,515 11,087,884 11,632,895 12,368,707 11,010,619 12,955,334 16,350,906 18,707,105 Judicial - - - - - - - - 8,516,032 8,644,768 Health and welfare - - - - - - - - 893,963 2,193,446 Highway and streets 10,357,488 10,838,473 10,969,516 10,104,034 11,984,896 10,711,027 10,857,448 11,450,485 13,687,366 11,649,145 Recreation and culture 7,583,085 7,719,906 7,749,245 8,236,872 8,138,369 7,420,052 6,497,239 9,134,233 13,980,828 9,032,477
Community and economic development 3,910,924 3,442,110 4,142,612 15,947,504 19,435,277 18,699,058 43,174,711 76,784,433 28,379,853 19,198,586 Other 2,704,982 2,927,391 2,710,979 - - - - - - -
Debt servicePrincipal 3,616,297 3,892,862 4,596,159 3,622,053 3,183,595 3,286,705 3,359,672 4,518,916 6,280,885 5,908,306
Interest and fiscal charges 931,079 1,275,957 1,120,518 949,318 1,000,307 823,907 798,387 2,003,677 3,941,234 10,011,958 Capital outlay 21,016,808 7,221,346 9,328,278 5,146,742 4,798,070 7,891,788 21,325,057 18,396,917 22,230,357 18,083,630
Total expenditures 160,624,944 144,684,468 149,450,436 153,234,708 166,174,022 165,175,679 193,101,186 251,048,585 232,161,063 232,569,405
Excess (deficiency) of revenues over expenditures (12,674,372) 4,963,484 3,716,679 6,231,704 132,028 (512,152) 12,733,657 (7,902,773) (6,035,694) 25,560,712
Other financing sources (uses)Transfers in 9,734,572 9,207,856 9,887,627 7,721,661 8,749,296 16,980,511 8,542,188 10,210,859 9,927,805 21,593,195 Transfers out (10,002,772) (10,055,346) (11,497,936) (9,283,847) (9,330,113) (13,218,616) (7,325,709) (10,807,859) (10,449,805) (21,593,195) Issuance of debt 16,761,300 2,090,000 - - 8,603,699 - - 27,559,000 177,400,000 20,000,000 Proceeds from the sale of capital assets 110,533 268 97,255 128,976 - 92,353 490,735 400,000 23,532 -
Payments to advance refunding escrow agent - (2,162,163) - - (7,741,363) - - (8,621,566) - - Bond premium 40,945 80,175 - - 780,670 - - - 10,989,553 571,444
Total other financing sources (uses) 16,644,578 (839,210) (1,513,054) (1,433,210) 1,062,189 3,854,248 1,707,214 18,740,434 187,891,085 20,571,444
Net change in fund balances 3,970,206$ 4,124,274$ 2,203,625$ 4,798,494$ 1,194,217$ 3,342,096$ 14,440,871$ 10,837,661$ 181,855,391$ 46,132,156$
Debt service as a percentage of noncapital expenditures 2.8% 3.6% 3.8% 3.0% 2.5% 2.5% 2.7% 2.8% 5.2% 7.8%
CITY OF LANSING
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
185
Table 5
Ratio of Total
Industrial and AssessedCommercial 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
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%
2023 1,965,466,450 201,680,300 1,387,333,702 216,700 - 3,554,697,152 19.70 7,109,394,304 50.0%
2024 2,818,948,085 232,512,700 1,286,067,531 195,227 - 4,337,723,543 19.70 8,675,447,086 50.0%
Source: Lansing City Assessor
Taxable Assessed Value
CITY OF LANSING
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
(RATE PER $1,000 OF ASSESSED VALUE)
186
Table 6
Totals
Total State
Year Ended Operating Public Safety Service City Schools County Education Other (2)
December 31, Tax Year Millage Millage Millage Millage Millage (1) Millage Tax College Millage Millage Total
2015 2014 19.44 - .26 19.70 21.77 10.20 6.00 3.81 9.96 71.44
2016 2015 19.44 - .26 19.70 21.83 9.83 6.00 3.81 9.96 71.13
2017 2016 19.44 - .26 19.70 22.57 10.06 6.00 3.81 9.96 72.10
2018 2017 19.44 - .26 19.70 22.60 10.07 6.00 3.81 11.25 73.43
2019 2018 19.44 - .26 19.70 22.50 11.34 6.00 3.81 11.26 74.61
2020 2019 19.44 - .26 19.70 25.38 11.34 6.00 3.81 9.97 76.20
2021 2020 19.44 - .26 19.70 25.10 11.91 6.00 3.77 10.20 76.68
2022 2021 19.44 - .26 19.70 24.51 11.98 6.00 3.77 10.18 76.14
2023 2022 19.44 - .26 19.70 24.51 11.31 6.00 3.77 10.19 75.48
2024 2023 19.44 3.50 .26 23.20 25.41 11.31 6.00 3.77 10.19 79.88
(1) rates for Lansing School District only, using non-principal residency rates
(2) includes Intermediate School, Airport Authority, Capital Area Transit Authority and Capital Area District Library
Source: Lansing City Treasurer
City of Lansing Overlapping Rates
CITY OF LANSING
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
187
Table 7
Taxable Taxable
Assessed Percent Assessed Percent
Taxpayer Valuation Rank of Total Valuation Rank of Total
General Motors LLC 79,627,130$ 1 2.42% 67,187,581$ 1 3.22%
Jackson National Life Insurance Company 60,882,600 2 1.85% 26,421,671 3 1.27%
Consumers Energy 59,903,100 3 1.82% 27,753,984 2 1.33%
Accident Fund 25,824,100 4 0.78%
Lansing Properties LLC 26,009,500 5 0.79%
Red Cedar Housing 20,756,700 6 0.63%
Lansing Retail Center 19,988,600 7 0.61% 11,673,448 8 0.56%
Emergent BioSolutions 14,551,000 8 0.44% 13,116,394 7 0.63%
Lansing MI MultiFamily Dst 13,964,100 9 0.42%
Hunter Towne Properties 11,373,700 10 0.35%
Phoenix Development Part I LLC 16,754,856 4 0.80%
Demmer Corporation 14,112,268 6 0.68%
Sprint Spectrum L.P.15,414,225 5 0.74%
Phoenix Development Part II LLC 8,004,962 9 0.38%
Blue Cross Blue Shield 7,693,800 10 0.37%
332,880,530$ 10.10% 208,133,189$ 9.97%
Source: Lansing City Assessor
2024 2015
CITY OF LANSING
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
188
Table 8
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
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%
2022 2023 49,459,123 49,456,656 100.00% 15,067 49,471,723 100.03%
2023 2024 53,754,724 53,750,988 99.99% 77,468 53,828,456 100.14%
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
CITY OF LANSING
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
189
Table 9
General Installment Net Unamortized General Installment Net Unamortized Percentage
Obligation Purchase Premiums/ Other Obligation Revenue Purchase Premiums/ Total Primary of Personal Per
Year Bonds Contracts Discounts Loans Bonds Bonds Agreements/Loans Discounts Government Income Capita Population (1)
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 6.85% 2 1,548 114,297
2023 214,543,986 21,048,000 11,526,235 10,616,876 115,004,650 7,875,000 - 1,892,933 382,507,680 14.30% 2 3,361 112,460
2024 230,753,750 19,612,000 11,479,613 8,727,710 108,093,995 6,300,000 - 1,782,501 386,749,569 14.47% 2 3,433 112,644
(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
Governmental Activities Business-Type Activities
CITY OF LANSING
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(UNAUDITED)
190
Table 10
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
2015 113,659 2,086,836,822$ 197,217,980$ 1,000$ 169,392,418$ 27,824,562$ 0.0133 222$
2016 114,110 2,165,392,100 178,055,734 1,000 156,019,074 22,035,660 0.0102 179
2017 117,400 2,267,592,100 163,409,357 1,000 145,314,271 18,094,086 0.0080 150
2018 116,986 2,349,995,600 153,772,908 1,000 138,327,868 15,444,040 0.0066 131
2019 117,388 2,566,962,100 135,498,816 30,111 119,811,675 15,657,030 0.0061 127
2020 118,210 2,837,435,376 126,721,374 29,361 114,181,076 12,510,937 0.0044 100
2021 112,664 3,057,816,101 145,925,054 29,361 117,303,309 28,592,384 0.0094 254
2022 114,297 3,224,876,243 135,709,572 29,361 105,494,050 30,186,161 0.0094 264
2023 112,460 3,060,880,895 342,967,804 29,361 116,897,583 226,040,860 0.0738 2,010
2024 112,644 3,295,900,629 352,109,859 29,361 109,876,496 242,204,002 0.0735 2,150
(1) Source: 2000 and 2020 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
CITY OF LANSING
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2024
(UNAUDITED)
191
Table 11
Overlapping
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Direct - City 373,487,455$ 100.00% 373,487,455$
Share of County-issued bonds
Drain Commission 31,071,814 100.00% 31,071,814
Other Overlapping Debt
Eaton Intermediate School District 2,625,000 1.60% 42,000
Ingham Intermediate School District 10,904,000 25.26% 2,754,350
Waverly School District 109,575,000 0.27% 295,853
Lansing School District 140,200,000 83.12% 116,534,240
East Lansing School District 89,528,377 6.77% 6,061,071
Holt School District 75,473,286 2.31% 1,743,433
Ingham County 87,053,697 29.15% 25,376,153
Eaton County 12,963,576 2.53% 327,978
Clinton County 22,957,302 0.02% 4,591
Lansing Community College 64,065,000 20.81% 13,331,927
Okemos School District 89,806,460 5.25% 4,714,839
Mason School District 59,495,000 1.23% 731,789
Grand Ledge School District 14,364,000 3.10% 445,284
Total Overlapping 203,435,322$
Total Direct and Overlapping 576,922,777$
Sources: Municipal Advisory Council
Note: Overlapping debt percentages are apportioned based upon relative assessed values.
CITY OF LANSING
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(UNAUDITED)
192
Table 12
Legal Debt Margin Calculation for Fiscal Year 2023
Assessed value, real and personal property 3,295,900,629$
Legal debt margin
Debt limitation - 10 percent of total valuation 329,590,063
Debt applicable to limit
Total City Bonded Debt 352,109,859
City Share:
Drain Commission-County Issued 31,071,814
TIF Supported Bonds 28,165,000
411,346,673
Less:
Brownfield Redevelopment Authority Bonds (38,365,000)$
Sewage Disposal Revenue Bonds (6,300,000)
Pollution Abatement (CSO Project) Bonds (87,304,644)
Share of County-issued bonds (31,071,814) (163,041,458)
Total net debt applicable to limit 248,305,215
Legal debt margin 81,284,848$
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Debt limit 329,590,063$ 306,088,090$ 322,487,624$ 283,743,538$ 256,696,210$ 207,850,642$ 233,606,400$ 223,687,492$ 216,539,210$ 208,683,682$
Total net debt applicable to limit 248,305,215 229,128,807 48,804,421 81,956,344 81,532,491 72,669,623 87,295,949 81,398,300 86,432,459 91,352,614
Legal debt margin 81,284,848$ 76,959,283$ 273,683,203$ 201,787,194$ 175,163,719$ 135,181,019$ 146,310,451$ 142,289,192$ 130,106,751$ 117,331,068$
Total net debt applicable to the limit
as a percentage of debt limit 75.34% 74.86% 15.13% 28.88% 31.76% 34.96% 37.37% 36.39% 39.92% 43.78%
CITY OF LANSING
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
193
Table 13
Direct Net Revenue
Gross Operating Available for
Revenue Expenses (1) Debt Service Principal Interest Total Coverage (2)
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
2023 38,710,464 17,775,903 20,934,561 1,550,000 380,688 1,930,688 10.84
2024 39,752,999 13,767,150 25,985,849 1,575,000 303,188 1,878,188 13.84
(1) Operating expenses less depreciation
(2) Coverage is defined as net revenue available for debt service divided by debt service requirements
Debt Service Requirements
Sewage Disposal Bonds
CITY OF LANSING
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
194
Table 14
Lansing
Personal Per Capita Median School District Unemployment Labor
Year Population (1) Income Income (1) Age (1) Enrollment (2) Rate (3) Force (3)
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
2023 112,460 2,669,125,640 23,734 32.80 10,173 6.4% 57,447
2024 112,644 2,673,492,696 23,734 32.80 10,525 4.0% 57,447
(1) Source: U.S. Census Bureau
(2) Source: Lansing School District
(3) Source: Michigan Bureau of Labor Market Information and Strategic Initiatives
CITY OF LANSING
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS PRIOR
(UNAUDITED)
195
Table 15
Percentage of Percentage of
Company Employees (1) Rank Employment (2) Employees (1) Rank Employment (2)
STATE OF MICHIGAN 13,880 1 6.58% 13,700 1 6.01%
MICHIGAN STATE UNIVERSITY 11,118 2 5.27% 10,725 2 4.70%
UNIVERSITY OF MICHIGAN SPARROW HEALTH SYSTEM 9,000 3 4.26% 5,735 3 2.52%
AUTO OWNERS 5,943 4 2.82% 1,400 9 0.61%
GENERAL MOTORS 4,183 5 1.98% 5,522 4 2.42%
JACKSON NATIONAL LIFE INS CO 2,439 6 1.16% 1,400 10 0.61%
PECKHAM 2,200 7 1.04%
LANSING COMMUNITY COLLEGE 1,800 8 0.85% 2,990 5 1.31%
LANSING SCHOOL DISTRICT 1,490 9 0.71% 1,613 7 0.71%
MCLAREN HEALTH (3)1,401 10 0.66% 2,400 6 1.05%
DART CONTAINER CORP
LIBERTY NATIONAL LIFE INSURANCE
MEIJER 1,500 8 0.66%
SOUTHERN-OWNERS INSURANCE
Greater Lansing metropolitan area employment 211,040 227,995
(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
2024 2015
CITY OF LANSING
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
196
Table 16
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
General governmentCity council 10 10 10 10 10 10 10 10 11 10
Mayor's office 5 6 6 7 (G) 7 11 12 12 9 8
City clerk 5 5 5 5 6 6 6 6 8 6
54-A district court 46 45 45 45 45 45 45 45 41 43
City attorney's office 11 11 11 11 12 11 12 13 12 13
City TV 2 2 2 2 2 3 2 2 2 2
Internal auditor 1 1 1 1 1 1 1 1 1 1
Human resources 10 12 12 11 11 11 11 11 14 15
Information technology11 11 11 16 16 15 15 14 13 16
Finance
Accounting/budget/purchasing 9 8 (E) 8 8 8 7 8 14 14 14
Treasury/income tax 9 10 11 11 13 16 14 12 12 15
Assessing 11 11 11 11 11 11 11 11 6 11
Property management - - - - - - - - - -
Fleet management - - - - - - - - - -
130 132 133 138 142 147 147 151 143 154
Planning & neighborhood development
Administration 2 2 2 2 2 3 3 3 3 3
Code compliance - - - 14 (F) 15 19 19 19 17 17
Building safety 13 13 13 13 13 15 14 14 14 14
Planning 4 4 4 3 (G) 4 4 3 3 3 3
Development 10 10 9 9 9 7 8 8 8 8
Parking & transportation 14 14 14 14 14 19 19 19 23 23
43 43 42 55 57 67 66 66 68 68
Neighborhood & Citizen Engagement - - - 1 (G) 5 5 5 12 13 13
Police 239 239 240 241 243 239 240 251 237 258
Fire 181 181 181 181 182 186 183 184 170 170
Code Compliance 14 14 14 - (F) - - - - 14 14
195 195 195 181 182 186 183 184 184 184
Public services
Administration & engineering 19 20 20 20 21 22 23 23 22 22
Operations & maintenance 117 117 117 118 118 113 116 116 114 114
Service garage - - - - - 1 1 1 1 1
Wastewater 41 41 41 42 42 42 42 42 42 42
Property Management 18 18 16 16 16 19 18 18 18 18
Fleet Management 27 26 30 30 30 29 29 29 29 29
222 222 224 226 227 226 229 229 226 226
Human relations & community services 7 7 8 9 10 11 10 10 8 11
Parks & recreation
Administration & design 6 6 6 6 6 6 6 6 6 7
Leisure & special recreation 6 6 6 6 6 10 6 6 6 7
Cemeteries 1 1 1 1 1 1 1 1 1 1
Golf/ice arena 3 3 3 3 - - - - - -
16 16 16 16 13 17 13 13 13 15
Total 852 854 858 867 879 898 893 916 892 929
Source: The City of Lansing
The following restructuring of departments have occurred:
(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.
Full-time Equivalent Employees
CITY OF LANSING
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
197
Table 17
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Public safety
Fire department responses 20,170 21,115 21,902 22,768 22,389 21,904 21,650 25,994 19,611 27,544
EMS related 17,376 18,275 18,827 19,264 19,655 18,975 18,381 21,511 15,543 21,847
Fire related 2,794 2,840 3,075 3,063 2,734 2,929 3,269 4,483 4,118 5,697
Police department responses 79,331 71,468 82,722 107,379 84,869 80,449 77,399 78,500 78,239 79,186
Arrests 4,510 3,880 5,710 4,507 4,418 3,524 2,446 2,601 2,871 3,005
Traffic violations 10,781 7,334 9,385 6,496 6,963 5,054 4,287 6,801 6,882 7,447
Public works
Potholes filled 53,281 53,488 53,332 54,773 2,589 1,042 698 4,997 1,254 1,116
Streets resurfaced (miles) 4.0 8.8 8.7 6.0 4.6 11.0 13.6 1.9 7.0 12.0
Recreation
Recreation participation 122,639 101,335 98,978 120,245 93,264 29,313 58,284 109,582 129,387 153,421
Pavilion rentals 206 242 180 202 222 78 140 142 105 111
Sewage disposal
Average amount processed daily (gal) 13.28 million 15.46 million 16.32 million 14.45 million 16.60 million 14.18 million 10.61 million 12.1 million 13.3 million 14.64 million
Parking system
Average number of monthly permits 3,077 3,218 2,581 3,310 2,500 869 1,203 1,200 1,200 1,300
Parking tickets issued 30,888 32,990 33,492 32,587 37,105 16,481 19,876 30,306 34,881 35,353
Cemetery
Lots sold 138 115 162 88 103 121 119 85 56 12
Golf
Annual rounds played 22,998 13,325 14508 20,492 - - - - - -
Garbage and rubbish
Yards sent to landfill 19,667 20,115 20,007 20,492 20,957 22,825 27,865 26,885 27,344 27,987
Recycling
Recycled goods sold (tons) 5,691 5,940 5,834 5,593 5,407 5,322 6,258 6,310 5,840 5,951
Yards composted 21,685 24,413 24,223 20,031 21,198 14,262 19,888 13,864 14,340 15,421
Source: The City of Lansing, Michigan
CITY OF LANSING
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
198
Table 18
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Public safety
Police stations 2222222222
Police patrol units 60606060585860575758
Fire stations 6666888887
Emergency Vehicles 0 0 0 0552731444444
Public works
Streets (miles) 414.00 414.00 414.00 414.00 413.00 413.23 413.23 412.00 412.00 412.00
Traffic signals 200 200 200 200 184 206 206 206 206 205
Recreation
Park acreage 2,363.45 2,134.26 2,134.26 2,017.56 2,174 1,659 1,659 1,641 1,641 1,641
Playgrounds 72747474767776767677
Baseball/softball fields 47 25 25 25 22 22 22 22 22 22
Soccer/football fields 6141515151616161616
Community centers 4444444444
Sewage disposal
Sanitary sewers (miles) 361 361 361 363 364 365 365 367 369 388
Storm sewers (miles) 235 235 235 237 238 239 239 241 243 302
Combined sewers (miles) 188 188 188 187 185 185 184 183 181 68
Parking system
Ramps 4444333333
Lots 17 16 16 16 16 16 17 14 14 14
Meters 2,166 2,166 2,166 2,166 2166 500 200 200 200 653
On-street Pay Stations 134 128 128 128 156
Cemetery
Number of cemeteries 3333333333
Golf
Number of courses 1111111111
Acreage 115 115 115 115 115 115 115 115 115 119
Garbage and rubbish
Refuse collection trucks 17 14 14 16 8 7 7 7 9 9
Recycling
Recycling trucks 7557888899
Compost trucks 0000877755
Sources: The City of Lansing, Michigan