HomeMy WebLinkAbout2006 City of Lansing Comprehensive Annual Financial Report CAFR ACFRCITY OF LANSING
2006 Comprehensive
Annual Financial Report
FOR
FISCAL YEAR ENDED JUNE 30, 2006
VIRG BERNERO, Mayor
Gerald Ambrose, Acting Director of Finance
Prepared by:
Department of Finance
LANSING CITY GOVERNMENT
2006
MAYOR
VIRG BERNERO
CLERK
CHRIS SWOPE
DISTRICT COURT JUDGES
PATRICK F. CHERRY
CHARLES F. FILICE
AMY KRAUSE
FRANK J. DELUCA
LOUISE ALDERSON
AT LARGE CITY COUNCIL BY WARDS
JOAN BAUER HAROLD LEEMAN – 1st Ward
KATHIE DUNBAR SANDRA ALLEN – 2nd Ward
BRIAN JEFFRIES RANDY WILLIAMS – 3rd Ward
CAROL WOOD TIM KALTENBACH – 4th Ward
OFFICERS
City Assessor......................................................................................................... Matt Dingman
City Attorney .........................................................................................................Brigham Smith
Acting City Treasurer............................................................................................... Sue Topping
Executive Assistant to the Mayor........................................................................Gerald Ambrose
Finance, Acting Director of .................................................................................Gerald Ambrose
Acting Fire Chief .................................................................................................William Cochran
Human Relations & Community Services, Director of ..........................................Rishawn Butler
Acting Internal Auditor ...............................................................................................Arnie Yerxa
Management Services, Interim Director of....................................................................Marty Riel
Parks & Recreation, Director of.....................................................................Murdock Jemerson
Personnel, Director of........................................................................................... Terri Singleton
Planning & Neighborhood Development, Director of..........................................Robert Johnson
Police Chief .................................................................................................................Mark Alley
Public Service, Director of ......................................................................................Chad Gamble
INTRODUCTORY SECTION
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City of Lansing, Michigan
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ..................................................................................................................................................i
Letter of Transmittal........................................................................................................................................... iii
Certificate of Achievement..................................................................................................................................xi
City Organizational Structure............................................................................................................................ xii
FINANCIAL SECTION
Independent Auditors’ Report..............................................................................................................................1
Management’s Discussion and Analysis..............................................................................................................3
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets..........................................................................................................................13
Statement of Activities...........................................................................................................................14
Governmental Fund Financial Statements
Balance Sheet .........................................................................................................................................16
Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Assets................17
Statement of Revenues, Expenditures, and Changes in Fund Balances.................................................18
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds to the Statement of Activities .........................................................19
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
General Fund.......................................................................................................................................20
Proprietary Fund Financial Statements
Statement of Net Assets......................................................................................................................22
Statement of Revenues, Expenses, and Changes in Fund Net Assets ................................................23
Statement of Cash Flows....................................................................................................................24
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Assets .....................................................................................................25
Statement of Changes in Fiduciary Net Assets...................................................................................26
Component Unit Financial Statements
Combining Statement of Net Assets...................................................................................................27
Combining Statement of Activities ....................................................................................................28
Index for Notes to Financial Statements .....................................................................................................29
Notes to Financial Statements.....................................................................................................................30
Required Supplementary Information
Schedule of Funding Progress and Employer Contributions:
Employees Retirement System...............................................................................................................64
Police & Fire Retirement System...........................................................................................................65
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City of Lansing, Michigan
Table of Contents (Continued)
Page
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet ......................................................................................................................66
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances..............................67
Nonmajor Special Revenue Funds
Combining Balance Sheet ......................................................................................................................68
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances..............................70
Schedules of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual.............................................................................................................72
Nonmajor Debt Service Funds
Combining Balance Sheet ......................................................................................................................80
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances..............................82
Nonmajor Capital Projects Funds
Combining Balance Sheet ......................................................................................................................84
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances............................. 86
Nonmajor Permanent Funds
Combining Balance Sheet ......................................................................................................................88
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances..............................89
Nonmajor Enterprise Funds
Combining Statement of Net Assets.......................................................................................................90
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ................................ 92
Combining Statement of Cash Flows.....................................................................................................94
Internal Service Funds
Combining Statement of Net Assets...................................................................................................... 98
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets .................................99
Combining Statement of Cash Flows...................................................................................................100
Agency Funds
Combining Statement of Fiduciary Assets and Liabilities ..................................................................102
Combining Statement of Changes in Fiduciary Assets and Liabilities ................................................103
STATISTICAL SECTION....................................................................................................................104
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Council President Harold Leeman December 18, 2006
and Council Members
10th Floor City Hall
Lansing, Michigan 48933-1694
Dear President Leeman and Council Members:
We are pleased to submit the comprehensive annual financial report of the City of
Lansing, Michigan for the fiscal year ended June 30, 2006. Responsibility for both the
accuracy of the data, and the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and belief, the enclosed
data are accurate in all material respects and are reported in a manner designed to present
fairly the financial position and results of operations government wide and of the various
funds of the City. This management assurance is supported by a comprehensive system of
internal controls designed to reasonably ensure that assets of the City are protected from
loss, theft or misuse and to ensure that adequate accounting data are compiled to allow
for the preparation of these financial statements in conformity with generally accepted
accounting principles. Such controls include appropriate policies and procedures,
ongoing risk assessment, and monitoring and review processes which are communicated
throughout City operations. Disclosures necessary to enable the reader to gain an
understanding of the City's financial activities have been included.
This letter of transmittal is designed to complement the Management Discussion
and Analysis and should be read in conjunction with it. The Management Discussion and
Analysis can be found immediately following the Independent Auditor Report
The financial reporting entity (the City) includes all of the funds and of the
primary government (i.e., the City as legally defined), as well as its blended component
units. Blended component units, although legally separate entities, are, in substance, part
of the primary government’s operations and are included as part of the primary
government. The Lansing Building Authority is a blended component unit. Discretely
presented component units are reported in a separate column in the combined financial
statements to emphasize that they are legally separate from the primary government and
to differentiate their financial position, results of operations and cash flows from those of
the primary government. The Lansing Entertainment & Public Facilities Authority, Tax
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Increment Finance Authority, and the Brownfield Redevelopment Authority are reported
as a discretely presented component units.
The City of Lansing provides a full range of services, including police and fire
protection; sanitation services; the construction and maintenance of highways, streets,
sewers, and infrastructure; recreational activities and support for human services and
cultural events.
Serving as Michigan's capital since 1848, Lansing was incorporated in 1859 and
operates under provisions of Public Act 279 of 1909, as amended (the "Home Rule City
Act"). The City is located in the lower middle of Michigan's Lower Peninsula and
operates under a strong Mayor form of government established by 1978 Charter revision.
It is a mature core City with a population of 119,286 according to revised 2000 Census
figures.
ECONOMIC CONDITION AND OUTLOOK
State of Michigan Economic Overview. The state of Michigan’s economy is weak in
light of the national economy’s recovery. While the state has worked to diversify its
economy over the last decade, this effort paled in comparison to the continued
dependence upon the core economic development driver of the state- the automobile
making industry.
Since 2001, this industry, both car making of the Big Three and Tier One through Tier
Three auto suppliers, has suffered through a radical restructuring as it adjusts to global
market place shifts, loss in market share, technological upgrades to its factories, closing
of obsolete factories, foreign competition and overwhelming legacy personnel costs. The
state has reacted poorly from a policy standpoint in recognizing this shift in its
fundamental economy. The state’s taxing system continues to be heavily dependent upon
traditional manufacturing resulting in an annual, structural government deficit. Thus,
continuous cuts in state services and investment (state government is currently running at
1974 personnel levels, the state’s Rainy Day fund was depleted in 2002, both parties
painfully but proudly poise themselves to tell all that they never raised a tax) has
exacerbated the psychological “bad feeling” among the public. This also impacts the
state’s position in the national and global economy, negatively affecting office, tourism
(vacancy rates among Michigan hotels and motels are far above national averages) and
retail sectors of the economy.
According to a Board member of the International Conference of Shopping Centers,
Michigan has been “red lined” by the retail industry. The state of Wyoming sent
recruitment teams to many Michigan cities in 2005, ran advertisements and rented
billboards, encouraging Michigan workers to leave Michigan for better job opportunities
in the skilled manufacturing trades in Wyoming. Workers left. United Van Lines reports
that Michigan leads the nation in usage of the moving industry- moving out of Michigan.
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In Lansing, GM carried through with its local restructuring plan, closing its assembly
plants and other assets in late 2004. At the same time, much of the remaining tool and die
factories also closed shop. Lower state government employment, GM shut downs and
other factory closings had great impact on the city’s income tax revenue stream moving
from 2004 into 2006/2007. It is unlikely that employment figures, either at GM or state
government, will ever return to previous levels in Lansing.
The single family housing market and construction industry, once an area that was
relatively strong in Michigan, has begun to badly stagnate along with the national trend.
The City of Lansing moved through a typical election cycle in 2005, electing a new
Mayor in November of 2005. As is usually the case, a contentious election campaign
resulted in a significant slow down of private economic decision making about
investments in the city until new leadership was decided upon. A bottle neck of potential
economic activity occurred, but is now unleashing rapidly with new vigor and
anticipation.
City of Lansing Economic Overview. One can argue that the global restructuring taking
place in the auto industry, though difficult for the state of Michigan and Lansing
economy, is a sign of strength in that the auto industry and labor leadership both
understand that massive and painful restructuring is required now, versus bankruptcy and
total job loss in the future. In other words, the Big Three and labor leadership can either
continue to right size their labor costs, increase flexibility of labor, design better product
and upgrade productivity technologies or face a potential collapse and consolidation. So
far, it appears that both parties are working together to transform their industry to meet
the demands of the 21st century, global market place. One also needs to note that
Michigan’s population is not declining, but rather is simply not growing at the national
average pace. Michigan’s southeast region leads the world in automotive research and
development engineering firms and personnel. Ann Arbor recently became home to the
most lucrative division of Google with 1000 new employees. Grand Rapids anchors an
emerging strong economy along the west coast of Michigan.
Michigan is still one of the top tier states in the country with regards to population size
and industry. Lansing has joined the ranks of Ann Arbor, Grand Rapids, Holland,
Traverse City, Birmingham, Novi, Royal Oak and a few other locations as a true
economic point of opportunity in a struggling state.
The City’s unemployment rate has typically hovered at 5.8%, about the national average
and significantly below the statewide average. New development in the last six months of
the fiscal year (the beginning of the new administration) created over 1800 jobs and $219
million in private investment, - five times the total in private investment and three times
the total in job creation compared to all of 2005.
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Lansing’s emergence as an economic point of opportunity is exemplified in many other
ways as well:
1. LEADERSHIP: Lansing has elected a new and energetic mayor who has listed
economic development activity as the top priority. The new vision of economic
development demands bold new thinking and embraces the competitive nature of
the global economy and technological advancements. Linking the skilled work
force of the region, college students and graduates, education, capital and
entrepreneurs with global high tech and bio-tech business opportunities at
Michigan State University is a key strategy.
2. CITY COUNCIL: The Lansing City Council has remained supportive of targeted,
appropriate growth incentives to companies investing in Lansing.
3. INVESTING IN ECONOMIC DEVELOPMENT: The Mayor and City Council
increased by nearly 100% the spending on economic development staff and
programming in the city in the 2006/2007 budget passed on July 1 2006. Though
the numbers are small it is still significant. Support from the city’s general fund
budget was increased from $130,000 to $254,000.
4. TWO NEW CAR ASSEMBLY PLANTS COME ON LINE: While all other
regions of the state experience terrible Tier One through Tier Three auto supplier
layoffs, on a massive scale, GM has opened two, new car assembly plants in the
city itself and half a dozen auto suppliers are building new plants in the city
and/or region. GM’s total workforce has declined from approximately 16,000 ten
years ago to a workforce of approximately 6000 today (all in the city proper).
2400 new auto supplier jobs will be on-line by the fall of 2006 (most in the city
proper). These remarkable investment achievements (over $2 billion in
investment over the last five years in the city) are a testament to the highly unique
and special labor/management relationship that GM and the UAW enjoy with one
another here in Lansing. Out of all of North America, GM selected and rewarded
the UAW approach in Lansing to be the model for 21st century industry success.
These new plants are the most automated, technologically advanced and flexible
(in every respect from machines to labor) in the entire world. This is where the
future lies for GM and labor. Whatever may or may not happen to GM, these new
Lansing car assembly plants are the top automotive assets anywhere, in any
company in the world.
5. DOWNTOWN BLOSSOMS: While private investment is weak in Michigan,
there is still money to spend and banks that want to make loans. Thus, the only
silver lining to the general collapse of the industrial sector and single family
housing of the suburbs of Michigan is that new capital has flowed to an area with
potential return on investment- Michigan’s downtowns, in particular, university
towns. Downtown Lansing is enjoying a genuine, market-driven rebirth of its
economy. There is very little retail vacancy on Washington Square, buildings are
being purchased rapidly and rehabilitated and almost all of the rehab involves
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mixed use- retail (mainly locally owned restaurants) on the first floor with lofts
and condos being placed on the upper floors. Almost all of this development is
being lead by a new generation of entrepreneur- Young, committed to historic
rehabilitation standards, fierce about downtown success and free of the typical
Lansing developer thinking- Sit on a vacant building for a decade in hopes of
landing a new state of Michigan office contract. These new entrepreneurs move
fast, take calculated risk and embrace a big picture.
6. HIGH TECH DIVERSIFICATION: Lansing is also seizing upon its position next
to Michigan State University (MSU). The new administration has resurrected the
SmartZone concept (Lansing was the only significant region in the state not to
adopt a SmartZone in the state). The city has seen success already in developing
new businesses that grow from the Intellectual Properties Department of MSU.
Niowave is the most recent example. This new business has been started by a
group of Cyclotron (out of MSU) professors who anticipate their
commercialization to generate 100 jobs within 5 years, located downtown
Lansing in the once abandoned Walnut elementary school.
7. TRADITIONAL MANUFACTURING DIVERSIFICATION: While Lansing can
fortunately still tout a strong automobile sector, budding downtown development
and high tech/bio-tech diversification, the city has not lost site of assisting
targeted traditional manufacturing. The Demmer Corporation is in the process of
receiving incentives, so that it can create 300 to 400 new jobs over the next three
years, turning its business from automotive related work (80%) to military-related
work. Smart Office Systems is moving its operations to a vacant plant in Lansing.
They make remanufactured furniture and have landed major contracts in the
recent past. The Dart Development Group is building speculative industrial space
in Lansing’s Midway Industrial Park on I-96. Perhaps this is nearly the only
region in the entire state to have the private sector building speculative industrial
space in this economic climate, but it is a testament to something special
happening to Lansing.
To date, Lansing's 2006 private investment is running nearly five times that for all of
2005. Jobs created in just the first half of 2006 are nearly three times total levels for
2005. It is also gratifying to point out that the investment and job creation figures are
distributed across economic boundaries, ranging from industrial development to mixed
use development downtown to high tech and biotech development projects. Lansing is
truly experiencing a historic year in economic development efforts.
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Significant Projects in the Future:
There are literally dozens of private development projects being contemplated for the
near future. Examples include:
1. The City is aggressively moving forward with what has been described as the
impossible- Rehabbing the Ottawa Power Station building on the river with a
viable, private tenant.
2. Since the start of the Bernero Administration, a host of partnerships have been
developed to bring to reality a Lansing Performing Arts center in the downtown.
The plan is to build the $30.8 million facility without debt service by sharing the
building with a significant tenant from the state. A new city parking ramp,
pedways, a ten story Association Building and the expansion of a near-by
corporation are all part of the plan. We anticipate getting final approvals at the
end of 2006. This will be the home to the Boarshead Theater, Lansing
Community College’s new Culinary Arts School (with restaurant) and civic
players, the Lansing Symphony Orchestra, Cooley Law School’s expanded library
and MSU’s Wharton Center has agreed to be the booking agent.
3. A new downtown library that would be combined with a new Impression Five
Children’s Science museum is under consideration. This would be supported
through a countywide Capitol Area District Library bond millage to build new
libraries across the county.
4. Efforts are underway to retain the Michigan Dental Association downtown on top
of the Capitol Centre building (three new stories). There are a number of firms
who wish to buy both the current Michigan Dental Association building and the
current building that the LEDC offices are located in.
5. Economic development incentives are being considered to assist in the
rehabilitation of the six floor Hollister building in downtown.
6. Efforts are underway to assist in the construction of a five story building called
the Abrams building that would be built new near the Stadium District building in
our Cool City area.
7. Several projects are underway involving high-tech businesses.
CHALLENGES
Despite significant economic development success, like much of the industrial Midwest,
Lansing experienced continued challenges in FY 2006. Such challenges were largely
attributable to the slow pace of economic recovery elsewhere in Michigan, and State
government’s responses to resulting revenue shortfalls, both in terms of its own
employment levels and in the reductions in revenue sharing with municipalities. Due to
some favorable revenue receipts, and a partial hiring freeze, the City’s General Fund
ended the year using $1.2 million less in revenue than budgeted.
Like many other urban cities in Michigan, the City is faced with rising healthcare,
pension, and labor costs outpacing the growth in its primary General Fund revenue
sources. To maintain its financial strength the Mayor is working with City Council and
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departments to address the structural imbalance through the budget process and through
prudent fiscal management.
Among other significant financial policies, the City has established a retiree
healthcare prefunding plan for non-police and fire employees beginning employment
after 1990. In addition, the City has begun funding for both police and fire employees,
and those members of the Employees Retirement System who began employment prior to
1990 through the respective pension systems. While high health care premium increases
and revenue shortfall precluded voluntary excess contributions in FY 2006, the City has
continued to make those contractual and actuarial contributions, with a view that such
funding will greatly contribute to long term financial stability. A revised actuarial study
is underway to determine future funding needs. Regarding the City’s two defined benefit
retirement plans, the Police and Fire Retirement System is 94.2% funded and the
Employees Retirement System is 84.8% funded as of December 31, 2005. This reflects
the Pension Funded Ratio of Actuarial Accrued Liability method of measuring the
systems’ progress in accumulating benefits when done.
OTHER INFORMATION
Budgeting Controls. The objective of the City's budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved
by City Council. The City also maintains an encumbrance accounting system, whereby
purchase orders amounts are deducted from the available budget, as one technique of
accomplishing budgetary control. Encumbered amounts lapse at year end and require
Council approval to be carried forward to the ensuing fiscal year for amounts greater than
$5,000 or greater than eight months old. The budget is adopted at the activity level
within each department.
Risk Management. The City carries all-risk coverage on all real and personal property
and contents. The total coverage is $485 million with a $25,000 self insured retention.
Workers Compensation is self insured with excess reinsurance coverage for claims
exceeding $500,000 from the State Accident Fund. The City carries liability coverage in
the amount of $16 million per occurrence.
Independent Audit. State statutes require an annual audit by independent certified public
accountants. The accounting firm of Rehmann Robson, was selected by the City's Audit
Committee. In addition to meeting requirements set forth in State statutes, the audit also
was designed to meet the requirements of the Federal Single Audit Act of 1984 and
related OMB Circular A-133. The auditor's report on the general-purpose financial
statements and schedules is included in the financial section of this report.
Awards. The Government Finance Officers Association (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City for its Comprehensive
Annual Financial Report for the fiscal year ended June 30, 2005. This was the 28th
consecutive year that the City has received this prestigious award. In order to be awarded
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a Certificate of Achievement, the City must publish an easily readable and efficiently
organized comprehensive annual financial report. This report satisfied both generally
accepted accounting principles and applicable legal requirements.
The Certificate of Achievement is valid for a period of one year only. We believe that our
current Comprehensive Annual Financial Report continues to meet the Certificate of
Achievement Program's requirements and we are submitting it to the GFOA to determine
its eligibility for another certificate.
Acknowledgments. The preparation of this comprehensive annual financial report, on a
timely basis, was made possible by the dedicated service of the entire staff of the Finance
Department. Each member of the department has our sincere appreciation for their
contributions made in the preparation of this report and in the financial management of
the City. The 28th consecutive GFOA award, recognizing their efforts, is well deserved
indeed.
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FINANCIAL SECTION
675 Robinson Road · P.O. Box 449 · Jackson, MI 49204 · Phone 517.787.6503 · Fax 517.788.8111 · www.rehmann.com
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INDEPENDENT AUDITORS’ REPORT
November 22, 2006
Honorable Mayor and
Members of the City Council
City of Lansing, Michigan
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund and
the aggregate remaining fund information of the City of Lansing, Michigan, as of and for the year
ended June 30, 2006, which collectively comprise the City’s basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the City of Lansing’s
management. Our responsibility is to express opinions on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Lansing, Michigan, as of June 30, 2006, and the respective changes in
financial position and cash flows, where applicable, thereof and the budgetary comparisons for the
General Fund for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
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In accordance with Government Auditing Standards, we have also issued our report dated
November 22, 2006, on our consideration of the City of Lansing, Michigan’s internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grants agreements and other matters, in a separately issued single audit report. The
purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed
in accordance with Government Auditing Standards and should be considered in assessing the results
of our audit.
The Management’s Discussion and Analysis on pages 3-12 and the historical pension supplementary
information for the Employees and Police and Fire Retirement Systems listed in the table of contents
are not a required part of the basic financial statements but are supplementary information required
by the Governmental Accounting Standards Board. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement and
presentation of the supplementary information. However, we did not audit this information and do
not express opinion on it.
Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the City of Lansing’s basic financial statements. The introductory section,
combining and individual fund financial statements and schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual fund financial statements and schedules have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as
a whole. The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
them.
MANAGEMENT’S DISCUSSION and ANALYSIS
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MANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the City of Lansing, Michigan (“the City”) provides this narrative overview and
analysis of the financial activities of the City for the fiscal year ended June 30, 2006 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.
HIGHLIGHTS
Government-wide:
• The assets of the City exceeded its liabilities at the close of the fiscal year by $452.9 million
(reported as net assets), a decrease of $7.0 million from the previous year. Component units of the
City reported a deficit of net assets of $42.8 million, an increase of $1.3 million from the previous
year.
Fund Level:
• As of the close of the fiscal year, the City’s governmental funds reported combined ending fund
balances of $43.9 million. Of this, $40.8 million is reported as unreserved fund balance, inclusive of
$5.7 million in the City’s Budget Stabilization Fund (before fiscal year 2007 designation of $1.6
million) and $9.9 million designated for capital projects for subsequent year expenditure. The
remaining fund balance of $3.0 million is reserved for specific purposes, such as long-term advances
to other funds and encumbrances. At the end of the fiscal year, unreserved fund balance for the
General Fund was $4.6 million, a decrease of $.1 million.
• The business-type activities reported net assets at year-end of $225.5 million, a decrease of $.5
million during the year.
Debt:
• The City’s total debt was $246.9 million at June 30, 2006, an increase of $2.7 million (or 1.1%),
which represents the net difference between new issuances, and payments and refunding of
outstanding debt. During the year, the City issued debt of $37.6 million, including $14.0 million in
limited tax general obligation bonds for its Combined Sewer Overflow (CSO) abatement project, and
refunded $17.4 million of limited tax general obligation bonds. More detailed information regarding
these activities and funds can be found in footnote 3-G, Long Term Debt which begins on page 49.
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 Statements (Reporting the City as a Whole) These statements include all non-
fiduciary assets and liabilities, but exclude assets and liabilities related to pensions. The Statement of Net
Assets and the Statement of Activities are two financial statements that report information about the City,
as a whole, and about its activities, which provide measurements of long term trends that should help
answer this question: Is the City, as a whole, better off or worse off as a result of this year’s activities?
Unlike the governmental funds, the current year’s revenues and expenses are taken into account
regardless of when cash is received or paid, known as “full accrual accounting”.
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The Statement of Net Assets (page 13) presents all of the City’s assets and liabilities, with the difference
between the two reported as “net assets”. Over time, increases and decreases in net assets are an indicator
of whether the City’s long term financial position is improving or deteriorating.
The Statement of Activities (pages 14 and 15) presents information showing how the City’s net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying events giving rise to the change occur, regardless of the timing of related cash flows.
Therefore, revenues and expenses are reported in these statements for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
The Statement of Net Assets and the Statement of Activities report three activities, as follows:
• Governmental Activities – Most of the City’s basic services are reported under this category.
Property taxes, income taxes, and intergovernmental revenues generally fund these services. The
Council (legislative branch), the District Court (judicial branch), and general operations of the
executive branch departments, such as police, fire, parks, public works, and staff departments fall
within the governmental activities.
• Business-type Activities – The City charges fees to customers to help cover all or most of the cost 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 three
such discretely presented units; the Lansing Entertainment and Public Facilities Authority, the Tax
Increment Finance Authority, and the Brownfield Redevelopment.
These financial statements include two schedules (pages 17 and 19) that reconcile the amounts reported
on the governmental fund financial statements (modified accrual accounting) with governmental activities
(full accrual accounting) on the appropriate government-wide statements. The following summarizes the
impact of transitioning from modified accrual to full accrual accounting:
• Capital assets used in governmental activities are not reported on governmental fund statements.
• Certain revenues that are earned, but not available for use within the reporting period, are reported as
revenues for governmental activities, but are reported as deferred revenue on the governmental fund
statements.
• Other long-term assets that are not available to pay for current period expenditures are deferred in
governmental fund statements, but not deferred on the government-wide statements.
• Internal service funds are reported as governmental activities, but reported as proprietary funds in the
fund financial statements.
• Bond issuance costs, discounts and premiums in the issuance of long term debt, are reported as
expenditures in governmental fund statements, but are capitalized and amortized in the government-
wide statements.
• Unless due and payable, long-term liabilities, such as capital lease obligations, compensated
absences, litigation, and others only appear as liabilities in the government-wide statements.
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• Capital outlay spending in excess of capitalization thresholds are recorded as capital assets on the
government-wide statements, but are reported as expenditures on the governmental fund statements.
• Bond and note proceeds result in liabilities on the government-wide statements, but are recorded as
other financing sources on the governmental fund statements.
• Certain other outflows, such as debt service principal payments, represent decreases in liabilities on
the government-wide statements, but are reported as expenditures on the governmental fund
statements.
The Notes to the Basic Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes can
be found beginning on page 30 of this report.
Fund Financial Statements (Reporting the City's Major Funds)
The City’s Major Funds are identified as its Sewage Disposal Fund, and its Parking System Fund, along
with its General Fund. The major fund financial statements begin on page 16. In addition to major funds,
individual fund data for the non-major funds begins on page 66. 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 project, debt service, and permanent funds.
• Proprietary funds -- When the City charges customers for the services it provides, whether to outside
customers or to other agencies within the City, these services are generally reported in proprietary
funds. Proprietary funds (enterprise and internal service) utilize full accrual accounting; the same
method used by private sector businesses. Enterprise funds report activities that provide supplies and
services to the general public. Examples are the Sewage Disposal Fund and the Parking Fund.
Internal service funds are reported as governmental activities on the government-wide statements.
• Fiduciary Funds -- The City acts as a trustee or fiduciary, for its employee pension plans. It is also
responsible for other assets that, because of a trust arrangement, can be used only for the trust
beneficiaries. The City's fiduciary activities are reported in separate Statements of Fiduciary Net
Assets and Changes in Fiduciary Net Assets beginning on page 25. These funds, which include
pension and other employee benefit funds, are reported using full accrual accounting. The
government-wide statements exclude fiduciary fund activities and balances because these assets are
restricted in purpose and do not represent spendable assets of the City to finance its operations.
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Additional Required Supplementary Information
Following the basic financial statements is additional Required Supplementary Information that further
explains and supports the information in the financial statements. The Required Supplementary
Information includes required pension supplementary information.
Other Supplementary Information
Other supplementary information includes combining financial statements for non-major 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.
FINANCIAL ANALYSIS OF THE GOVERNMENT AS A WHOLE
The City’s combined net assets decreased $7.7 million over the course of this fiscal year’s operations to a
total of $452.9 million. The net assets of the governmental activities decreased $7.1 million or 3.0% and
business-type activities decreased $.5 million or .2%.
Net Assets as of June 30,
(in millions of dollars)
Governmental Business-type Total Primary
Activities Activities Government
2006 2005 2006 2005 2006 2005
Assets
Current and other non-current assets 67.6$ 63.8$ 97.2$ 97.3$ 164.8$ 161.1$
Capital assets 216.3 221.6 342.5 340.3 558.8 561.9
Total assets 283.9$ 285.4$ 439.7$ 437.6$ 723.6$ 723.0$
Liabilities
Liabilities
Long-term liabilities 41.8$ 38.3$ 209.5$ 207.2$ 251.3$ 245.5$
Other liabilities 14.6 13.2 4.7 4.4 19.3 17.6
Total liabilities 56.4$ 51.5$ 214.2$ 211.6$ 270.6$ 263.1$
Net assets
Invested in capital assets, net of related debt 190.3 198.3 161.3 163.8 351.6 362.1
Restricted 36.7 33.9 36.4 39.5 73.1 73.4
Unrestricted .5 1.7 27.8 22.7 28.3 24.4
Total net assets 227.5$ 233.9$ 225.5$ 226.0$ 453.0$ 459.9$
The largest component (77.6%) of the City’s net assets reflects its investment in capital assets (e.g. land,
buildings, equipment, infrastructure, and others), less any related debt outstanding that was needed to
acquire or construct the assets. Unrestricted net assets comprise 6.2 %. These represent resources that may
be used at the City’s discretion, but often have limitations based upon policy action. The remaining
portion, restricted net assets, is subject to external restrictions such as bond covenants, City Charter, State
legislation or Constitutional provision.
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The following condensed financial information was derived from the government-wide Statement of
Activities and reflects how the City’s net assets changed during the fiscal year:
Change in Net Assets
for the Fiscal Year Ended June 30,
(in millions of dollars)
Governmental Business-type Total Primary
Activities Activities Government
2006 2005 2006 2005 2006 2005
Revenues
Program revenues
Charges for services 24.9$ 23.0$ 42.9$ 42.2$ 67.8$ 65.2$
Operating grants 16.1 16.7 - - 16.1 16.7
Capital grants 3.6 3.5 1.4 .7 5.0 4.2
General revenues
Taxes 64.5 63.6 - - 64.5 63.6
State shared revenue 16.9 17.5 - - 16.9 17.5
Unrestricted Grants and Contributions 9.9 8.9 - - 9.9 8.9
Unrestricted Investment -
Earnings 1.7 .7 1.5 1.3 3.2 2.0
Other .8 .1 - - .8 .1
Total revenues 138.4 134.0 45.8 44.2 184.2 178.2
Expenses
General government, administrative 34.4 53.5 - - 34.4 53.5
Public Safety 60.0 38.7 - - 60.0 38.7
Public Works 31.8 30.7 - - 31.8 30.7
Recreation and Culture 7.9 5.5 - - 7.9 5.5
Community Development 7.1 7.0 - - 7.1 7.0
Interest on Long Term Debt 1.2 1.0 - - 1.2 1.0
Sewage Disposal System - - 21.7 20.6 21.7 20.6
Municipal Parking System - - 18.4 10.2 18.4 10.2
Cemetery - - .8 .8 .8 .8
Golf - - 1.4 1.4 1.4 1.4
Garbage and Refuse Collection - - 1.4 1.4 1.4 1.4
Recycling - - 3.0 2.9 3.0 2.9
Potter Park Zoo - - 2.7 2.7 2.7 2.7
Total expenses 142.4 136.4 49.4 40.0 191.8 176.4
Excess before transfers (4.0) (2.4) (3.6) 4.2 (7.6) 1.8
Transfers in (out) (3.1) (2.1) 3.1 2.1 - -
Changes in net assets (7.1) (4.5) (.5) 6.3 (7.6) 1.8
Beginning net assets, as restated 234.6 238.4 226.0 219.7 460.6 458.1
Ending net assets 227.5$ 233.9$ 225.5$ 226.0$ 453.0$ 459.9$
-8-
Governmental Activities:
The following chart depicts revenues of the governmental activities for the fiscal year:
Revenues - Governmental Activities
Fiscal Year Ending June 30, 2006
Property tax and special
assessments
27.1%
Income tax
19.5%
Unrestricted investment
earnings
1.2%
Miscellaneous
0.6%
Unrestricted grants and
contributions
7.2%
State shared revenue
12.2%
Capital grants and
contributions
2.6%
Operating grants and
contributions
11.7%
Charges for services
18.0%
Property taxes comprised 27.1% of Governmental Activities revenue, with $2,144,185 representing debt
service on voted unlimited tax- general obligation debt. The City’s operating millage is currently 14.95
mills. In accordance with Charter and State Constitutional provisions, the City may levy up to 19.1692
mills for operations in FY 2007.
Income taxes comprised 19.5% of Governmental Activities revenue which fully appears within the
General Fund. Local income tax rates are prescribed by State law, and limited in Lansing’s case to 1% of
resident income and 0.5% of the income of persons working in the City, but living outside of its corporate
boundaries.
State shared revenue is collected by the State of Michigan and distributed to local governments by
formula allocation of portions of the State sales tax and motor fuel and weight taxes. FY 2006 receipts
from the State of Michigan trended downward, due to declining sales tax collections and discretionary
reductions in revenue sharing payments.
Significant changes in expenses of Governmental Activities resulted primarily from the allocation of
fringe benefit expenses to all departments of the City. Previously, these expenses were included in
general government expenses.
-9-
The following chart depicts expenses of the governmental activities for the fiscal year:
Expenses - Governmental Activities
Fiscal Year Ending June 30, 2006
Transfers
2.2%
Interest on long-term
debt
0.8%General government,
administrative
23.6%
Public safety
41.3%
Public works
21.8%
Recreation and culture
5.4%
Community development
4.9%
Business-type Activities
Net assets of the business-type activities decreased by $.5 million during the fiscal year.
The Sewage Disposal System Fund net assets increased by $6.4 million. This is primarily a result of
funding for capital costs of the combined sewer separation project. Sewage system revenues are expected
to increase by 4% per year over the next five years to continue this 30 year project.
Within non-major funds, Cemeteries, Golf, and Potter Park Zoo remain subsidized by the General Fund.
The City of Lansing is continuing its five year plan to eliminate the unrestricted net asset deficit in the
Golf Fund.
Expenses in the Municipal Parking System increased by approximately $8 million primarily due to the
loss realized from the sale of land.
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FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As the City completed the fiscal year, its governmental funds reported fund balances of $43.9 million. Of
this total amount, $10.3 million, constitutes unreserved fund balance which is available for appropriation
for the general purposes of the City. This includes $5.7 million in the City’s Budget Stabilization Fund of
which $1.6 million has been appropriated for fiscal year 2007 and $4.6 million in the General Fund.
Further, $36.2 million of the total amount of $43.9 million constitutes unreserved fund balances that are
restricted for the purposes of the funds they were set up for. The remainder of fund balance is reserved
and is not available for new spending because it has already been reserved for specific purposes,
including special assessments and encumbrances.
General Fund
The General Fund is the chief operating fund of the City. At the end of fiscal year 2006, the General Fund
fund balance was $7.1 million, including an unreserved fund balance of $4.6 million and a reserved fund
balance of $2.4 million. The General Fund’s total fund balance decreased $114,313. Unreserved fund
balance decreased by $74,948.
General Fund Budgetary Highlights:
Due to the combination of a partial hiring freeze and the following revenue highlights, the FY 2006
budgeted use of reserves was decreased from $3.1 million to (inclusive of FY 2005 carryforwards) to $1.9
million in May.
A 1.5 million increase in budgeted income tax revenues, despite the closing of the General
Motors Lansing Car Assembly Plant. This increase was later offset by a $1 million one-time
adjustment (reduction) to adjust the accounting treatment for income tax payables.
State Fire Protection Reimbursement grant appropriations received a supplemental appropriation
by the State, and the City’s share was increased by $338,000, accordingly.
Sewage Disposal Fund
Net assets increased $6.5 million to $196.3 million in FY2006. This was attributable to an increase in
capital assets, net of related debt increasing $8.4 million for the City’s continuing combined sewer
overflow project.
Parking Fund
The Municipal Parking Fund had a decrease in capital assets net of related debt of $11.9 million, due to
the sale of some downtown property for economic development. Unrestricted net assets increased $4.1
million, mainly from the proceeds of the sale. Total net assets decreased $7.7 million from this
transaction.
Budget Stabilization Fund
Fund balance at June 30, 2006 decreased to $5.7 million, from $7.2 million the previous year. The Fund
is limited by Ordinance to 10% of year end General Fund appropriations. The City has appropriated $1.6
million for their 2007 budget.
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Capital Assets
Capital Assets: At the end of the fiscal year 2006, the City had invested $558.8 million, net of
accumulated depreciation, in a broad range of capital assets (see the table below). Total depreciation
charges for the fiscal year were $23.5 million. Additional information regarding the City’s capital assets
can be found in the notes to the basic financial statements.
Capital Assets as of June 30,
(net of depreciation, in millions of dollars)
Governmental Business-type Total Primary
Activities Activities Government
2006 2005 2006 2005 2006 2005
Land 24.6$ 24.7$ 13.9$ 22.6$ 38.5$ 47.3$
Land improvements 4.5 4.3 13.3 14.1 17.8 18.4
Buildings and improvements 47.1 48.9 107.4 111.6 154.5 160.5
Equipment 7.2 5.8 1.0 1.2 8.2 7.0
Sewers - - 141.8 132.5 141.8 132.5
Infrastructure 123.4 132.5 - - 123.4 132.5
Subtotal 206.8 216.2 277.4 282.0 484.2 498.2
Construction in progress 9.5 6.1 65.1 58.3 74.6 64.4
Total 216.3$ 222.3$ 342.5$ 340.3$ 558.8$ 562.6$
Infrastructure capital assets in governmental activity funds of $7,472,662 were removed from service
during the year.
Within business-type activity funds, land was reduced by almost $9.0 million due to the sale of the Land
Triangle property in the Parking Fund.
Debt Administration
The City, along with the Lansing Building Authority (LBA), a blended component unit of the City, are
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 only dedicated revenue bonds which are
currently outstanding. LBA’s bonds financed the construction of parking, golf course, and firing range
improvements. Revenues derived from user fees from persons using parking and golf facilities fund the
debt service requirements for related improvements, but they are also backed by a limited tax pledge. The
General Fund pays for firing range related debt service. More detailed information regarding the City’s
long-term obligations is presented in Note 3-G (Long-Term Debt) to the financial statements..
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2006 2005
Governmental:
Special assessment bonds $0.03 $0.04
General obligation bonds (backed by the City) 17.24 13.32
Installment purchase contracts 7.35 8.40
Loans 1.41 1.54
Sub-total 26.03 23.30
Business Type:
General obligation bonds (backed by the City) 168.82 165.03
Revenue bonds and notes (backed by specific fee revenu 47.91 51.71
Loans 4.18 4.18
Sub-total 220.91 220.92
Total $246.94 $244.22
.
Outstanding Debt as of June 30,
(in millions of dollars)
ECONOMIC CONDITION AND OUTLOOK
The State of Michigan’s slow economic recovery, combined with rising labor force and healthcare costs,
continues to place budgetary and fiscal constraints on the City of Lansing. A pick-up in income tax
growth (net of a one-time adjustment), along with stable property tax growth, is a tentatively positive
sign; however, a structural imbalance between revenue and expenditure growth exists, as is the case for
the majority of cities, especially those that are urban centers, in Michigan.
To address these budgetary challenges, since his inauguration in January, 2006, Mayor Bernero has
implemented a budgetary strategy of maximizing revenues, reducing expenses, improving operational
efficiencies, and investing in productivity-gaining measures and technologies, with an emphasis on
protecting vital services to the public. The Mayor continues to work with Council and the unions to slow
the rising cost of healthcare and other compensation issues. While the FY 2007 budget includes a $1.6
million use of reserves, the Mayor has pledged to continue working with Council to eliminate any use of
General Fund reserves for the FY 2008 budget.
CONTACTING THE CITY FINANCE DEPARTMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the City’s finances and to demonstrate the City’s accountability for the money
it receives. If you have any questions about this report or need additional financial information, contact
the Finance Department at (517) 483-4500.
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
City of Lansing
Statement of Net AssetsJune 30, 2006
Primary Government
Governmental Business-type Component
Activities Activities Totals Units
Assets
Cash and investments 36,330,084$ 28,033,109$ 64,363,193$ 1,201,990$
Receivables, net 28,917,325 30,098,371 59,015,696 564,134
Internal balances (344,781) 344,781 - -
Inventories, prepaids and other assets 2,688,881 1,262,224 3,951,105 229,506
Restricted assets:
Cash and investments - 36,788,644 36,788,644 360,961
Receivables, net - 618,811 618,811 -
Capital assets not being depreciated 34,130,880 78,991,143 113,122,023 -
Capital assets being depreciated, net 182,158,368 263,549,495 445,707,863 140,100
Total assets 283,880,757 439,686,578 723,567,335 2,496,691
Liabilities
Accounts payable and
accrued liabilities 14,363,031 3,521,586 17,884,617 712,560
Accrued interest payable 219,376 1,054,278 1,273,654 8,768,219
Unearned revenues 59,454 100,516 159,970 667,249
Long-term liabilities:
Due within one year 14,669,974 15,866,117 30,536,091 2,390,848
Due in more than one year 27,104,529 193,665,969 220,770,498 32,699,455
Total liabilities 56,416,364 214,208,466 270,624,830 45,238,331
Net assets
Invested in capital assets, net
of related debt 190,243,447 161,324,071 351,567,518 54,492
Restricted for:
Public safety 1,177,785 - 1,177,785 -
Public works 11,226,501 - 11,226,501 -
State mandated programs 7,007,538 - 7,007,538 -
Debt service - 35,945,848 35,945,848 -
Capital projects 15,717,371 419,583 16,136,954 -
Endowments (non-expendable) 1,577,150 - 1,577,150 -
Unrestricted (deficit) 514,601 27,788,610 28,303,211 (42,796,132)
Total net assets (deficit)227,464,393$ 225,478,112$ 452,942,505$ (42,741,640)$
The accompanying notes are an integral part of the financial statements.
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City of Lansing
Statement of Activities
For the Year Ended June 30, 2006
Program Revenues
Operating Capital
Charges Grants and Grants and Net (Expense)
Functions/Programs Expenses for Services Contributions Contributions Revenue
Primary government
Governmental activities:
General government 34,375,762$ 6,416,850$ 38,594$ -$ (27,920,318)$
Public safety 60,047,271 13,087,372 1,062,801 - (45,897,098)
Public works 31,790,944 3,891,646 14,882,090 716,439 (12,300,769)
Recreation and culture 7,881,212 1,405,584 98,383 195,290 (6,181,955)
Community development 7,124,491 66,486 - 2,747,440 (4,310,565)
Interest on long-term debt 1,197,851 - 76,628 - (1,121,223)
Total governmental activities 142,417,531 24,867,938 16,158,496 3,659,169 (97,731,928)
Business-type activities:
Sewage disposal system 21,706,537 26,867,610 - - 5,161,073
Municipal parking system 18,403,163 10,289,830 - - (8,113,333)
Cemetery 753,151 237,564 - - (515,587)
Golf 1,398,963 890,190 - 1,368,773 860,000
Garbage and rubbish collection 1,412,620 1,295,053 - - (117,567)
Recycling 2,981,730 2,816,277 - - (165,453)
Potter Park Zoo 2,718,759 471,703 - - (2,247,056)
Total business-type activities 49,374,923 42,868,227 - 1,368,773 (5,137,923)
Total primary government 191,792,454$ 67,736,165$ 16,158,496$ 5,027,942$ (102,869,851)$
Component units
Brownfield redevelopment 520,818$ 2,500$ 53,996$ -$ (464,322)$
Community development 3,716,189 - - - (3,716,189)
Recreation and culture 5,603,087 4,781,436 866,012 - 44,361
Total component units 9,840,094$ 4,783,936$ 920,008$ -$ (4,136,150)$
Continued…
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City of Lansing
Statement of Activities (concluded)For the Year Ended June 30, 2006
Primary Government
Governmental Business-type Component
Activities Activities Totals Units
Changes in net assets
Net (expense) revenue (97,731,928)$ (5,137,923)$ (102,869,851)$ (4,136,150)$
General revenues
Property taxes 37,506,017 - 37,506,017 5,370,444
Income taxes 27,032,176 - 27,032,176 -
Grants and contributions not
restricted to specific programs 26,817,633 - 26,817,633 -
Unrestricted investment earnings 1,634,608 1,453,076 3,087,684 103,988
Gain on sale of capital assets 774,822 1,248 776,070 -
Transfers - internal activities (3,132,465) 3,132,465 - -
Total general revenues
and transfers 90,632,791 4,586,789 95,219,580 5,474,432
Change in net assets (7,099,137) (551,134) (7,650,271) 1,338,282
Net assets (deficit), beginning of year, as restated 234,563,530 226,029,246 460,592,776 (44,079,922)
Net assets (deficit), end of year 227,464,393$ 225,478,112$ 452,942,505$ (42,741,640)$
The accompanying notes are an integral part of the financial statements.
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FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Major Funds
General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Non-Major Funds
Non-major governmental funds are presented, by fund type, beginning on the pages listed below:
Special Revenue funds, page 68.
Debt Service funds, page 80.
Capital Projects funds, page 84.
Permanent funds, page 88.
City of Lansing
Balance Sheet - Governmental Funds
June 30, 2006
Other
Governmental
General Funds Totals
Assets
Assets
Cash and cash equivalents 2,136,334$ 2,419,160$ 4,555,494$
Equity in pooled cash - 28,574,716 28,574,716
Accounts receivable, net 6,769,995 2,612,626 9,382,621
Taxes receivable 4,084,933 - 4,084,933
Special assessments receivable - 1,162,420 1,162,420
Loans receivable - 1,410,149 1,410,149
Accrued interest receivable - 1,594,910 1,594,910
Due from other funds 4,101,335 46,052 4,147,387
Interfund receivable - 5,728,059 5,728,059
Advances to other funds 601,263 192,439 793,702
Due from other governments 5,405,318 5,175,899 10,581,217
Prepaids 158,960 146,764 305,724
Inventories 1,537,398 - 1,537,398
Total assets 24,795,536$ 49,063,194$ 73,858,730$
Liabilities and Fund Balances
Liabilities
Accounts payable 6,353,479$ 1,384,842$ 7,738,321$
Deposits payable - 336,768 336,768
Accrued payroll 1,688,676 231,826 1,920,502
Retainage payable 2,041,032 - 2,041,032
Indemnity bonds - 14,774 14,774
Due to other funds 4,404,218 290,389 4,694,607
Interfund payable 883,765 5,696,024 6,579,789
Advance from other funds - 601,263 601,263
Due to other governments 1,262,802 - 1,262,802
Deferred revenue 803,801 3,712,137 4,515,938
Other 279,578 - 279,578
Total liabilities 17,717,351 12,268,023 29,985,374
Fund balances
Reserved for advances 601,263 192,439 793,702
Reserved for prepaids 158,960 146,764 305,724
Reserved for inventories 1,537,398 - 1,537,398
Reserved for encumbrances 145,603 466,769 612,372
Unreserved, designated for
subsequent years' expenditures:
General fund 1,914,379 - 1,914,379
Special revenue funds - 9,882,456 9,882,456
Unreserved, reported in:
General fund 2,720,582 - 2,720,582
Special revenue funds - 8,915,835 8,915,835
Debt service funds - 88,826 88,826
Capital projects funds - 15,524,932 15,524,932
Permanent funds - 1,577,150 1,577,150
Total fund balances 7,078,185 36,795,171 43,873,356
Total liabilities and fund balances 24,795,536$ 49,063,194$ 73,858,730$
The accompanying notes are an integral part of the financial statements
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City of Lansing
Reconciliation of Fund Balances on the Balance Sheet
for Governmental Funds to Net Assets of
Governmental Activities on the Statement of Net Assets
June 30, 2006
Fund balances - total governmental funds 43,873,356$
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the funds.
Add - capital assets 469,072,556
Deduct - accumulated depreciation (257,586,034)
Because the focus of governmental funds is on short-term financing, some
assets will not be available to pay for current expenditures. Those assets
(i.e., receivables) are offset by deferred revenues in the governmental funds
and, therefore, not included in fund balance.
Add - deferred ambulance fees 445,324
Add - deferred nuisance fees 358,477
Add - deferred loans receivable 1,210,149
Add - deferred long-term interest receivable 1,593,867
Add - deferred long-term special assessments 848,667
Internal service funds are used by management to charge the costs of certain
equipment maintenance to individual funds. The assets and liabilities of the
internal service funds are included in governmental activities in the statement
of net assets.8,069,991
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Deduct - bonds, loans and leases payable (24,616,977)
Deduct - accrued interest on bonds, loans and leases payable (194,231)
Add - deferred bond issue costs 18,407
Deduct - compensated absences and other long-term liabilities (15,629,159)
Net assets of governmental activities 227,464,393$
The accompanying notes are an integral part of the financial statements.
-17-
City of Lansing
Statement of Revenues, Expenditures
and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2006
Other
Governmental
General Funds Totals
Revenues
Property taxes 34,929,616$ 3,028,157$ 37,957,773$
Income taxes 27,032,176 - 27,032,176
Licenses and permits 860,647 - 860,647
Intergovernmental 17,587,626 17,376,599 34,964,225
Charges for services 10,198,052 9,238,215 19,436,267
Fines and forfeits 3,928,338 587,613 4,515,951
Interest and rents 781,160 929,514 1,710,674
Contributions 9,347,440 38,391 9,385,831
Donations from private sources - 549,055 549,055
Other revenues 121,505 960,778 1,082,283
Total revenues 104,786,560 32,708,322 137,494,882
Expenditures
Current expenditures:
General government 32,462,650 2,493,387 34,956,037
Public safety 53,695,680 5,447,949 59,143,629
Highways and streets 2,908,952 7,970,052 10,879,004
Recreation and culture 7,440,629 68,554 7,509,183
Other functions 2,639,368 5,620,047 8,259,415
Debt service:
Principal 536,528 2,708,351 3,244,879
Interest 122,453 1,004,728 1,127,181
Issuance costs - 18,407 18,407
Capital outlay - 13,306,810 13,306,810
Total expenditures 99,806,260 38,638,285 138,444,545
Revenues over (under)
expenditures 4,980,300 (5,929,963)(949,663)
Other financing sources (uses)
Transfers in 2,081,511 6,089,487 8,170,998
Transfers out (7,758,507)(3,544,956)(11,303,463)
Proceeds on sale of capital assets 582,383 192,439 774,822
Issuance of long-term debt - 7,581,500 7,581,500
Bond premium - 52,982 52,982
Bond discount -(42,400)(42,400)
Payment to escrow agent -(1,504,575)(1,504,575)
Total other sources (uses)(5,094,613)8,824,477 3,729,864
Net change in fund balances (114,313)2,894,514 2,780,201
Fund balances, beginning of year 7,192,498 33,900,657 41,093,155
Fund balances, end of year 7,078,185$ 36,795,171$ 43,873,356$
The accompanying notes are an integral part of the financial statements.
-18-
City of Lansing
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2006
Net change in fund balances - total governmental funds 2,780,201$
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlay as expenditures. However, in the statement
of activities, the cost of those assets is allocated over their estimated useful lives as
depreciation expense.
Add - capital outlay 9,167,908
Deduct - depreciation expense (13,348,725)
Deduct - loss on disposal of capital assets (2,072,710)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds, but rather are deferred to subsequent
fiscal years.
Add - change in ambulance fees 133,034
Add - change in deferred special assessments 10,918
Internal service funds are used by management to charge the costs of certain
equipment maintenance to individual funds. The net increase (decrease) in the
net assets of the internal service funds is reported with governmental activities.
Deduct - net operating income (loss) from governmental activities in internal service funds (193,513)
Add - interest revenue from governmental internal service funds 15,531
Deduct - interest expense from governmental internal service funds (79,358)
Deduct - amortization expense from governmental internal service funds (654)
Debt proceeds provide current financial resources to governmental funds in the
period issued, but issuing debt increases long-term liabilities in the statement of
net assets. Repayment of debt principal is an expenditure in the funds, but the
repayment reduces long-term liabilities in the statement of net assets.
Deduct - issuance of long-term debt (7,581,500)
Add - principal payments on long-term liabilities 3,244,879
Deduct - premium on bond issuances (52,982)
Add - discount on bond issuances 42,400
Add - payments to bond escrow agent 1,504,575
Add - bond issuance costs 18,407
Certain expenditures are reported in govenmental funds that reduce long-term
liabilities for purposes of the statement of net assets.
Deduct - increase in liability for workers' compensation (1,378,878)
Some expenses reported in the statement of activites do not require the use of current
financial resources and therefore are not reported as expenditures in the funds.
Add - decrease in accrued interest payable on long-term liabilities 8,688
Add - decrease in the accrual for compensated absences 682,642
Change in net assets of governmental activities (7,099,137)$
The accompanying notes are an integral part of the financial statements.
-19-
Proprietary Fund Financial Statements
Major Funds
Sewage Disposal System Fund – This fund accounts for the provision of sewage disposal services to the
residents of the City.
Municipal Parking System Fund – This fund accounts for the operation of City-owned parking facilities.
Non-Major Funds and Internal Service Funds
Non-major enterprise funds and internal service funds are presented, by fund type, beginning on the pages listed
below:
Enterprise funds, page 90.
Internal Service funds, page 98.
-20-
City of Lansing
Statement of Revenues, Expendituresand Changes in Fund Balances - Budget and Actual
General FundFor the Year Ended June 30, 2006
Budget Variance with
Original Final Actual Final Budget
Revenues
Property taxes 34,535,000$ 34,935,668$ 34,929,616$ (6,052)$
Income taxes 26,400,000 27,940,000 27,032,176 (907,824)
Licenses and permits 825,606 825,606 860,647 35,041
Intergovernmental 17,110,000 17,714,496 17,587,626 (126,870)
Charges for services 10,674,450 10,144,806 10,198,052 53,246
Fines and forfeits 3,874,200 3,774,350 3,928,338 153,988
Interest and rents 584,100 823,800 781,160 (42,640)
Contributions 9,034,500 9,289,655 9,347,440 57,785
Other revenues 606,690 72,200 121,505 49,305
Total revenues 103,644,546 105,520,581 104,786,560 (734,021)
Expenditures
General government:
City clerk 858,525 966,417 929,884 36,533
Council 1,002,222 1,046,170 1,011,268 34,902
Courts 4,372,108 4,297,072 4,296,516 556
Finance 4,765,407 4,800,313 4,778,175 22,138
General administration 10,677,259 5,779,044 5,814,606 (35,562)
Law 1,129,708 1,100,632 1,096,312 4,320
Management services 8,792,335 9,725,721 9,664,836 60,885
Mayor 671,915 675,980 661,979 14,001
Personnel services 1,203,316 1,369,649 1,367,962 1,687
Planning / neighborhood development 3,169,300 3,004,937 2,841,112 163,825
Total general government 36,642,095 32,765,935 32,462,650 303,285
Public safety:
Police 26,242,179 28,626,535 28,579,978 46,557
Fire 21,872,464 25,240,836 25,115,702 125,134
Total public safety 48,114,643 53,867,371 53,695,680 171,691
Highways and streets:
Public service 3,681,566 2,949,592 2,908,952 40,640
Parks and recreation 6,899,192 7,530,577 7,440,629 89,948
Other functions:
Human relations / community services 994,782 1,053,229 1,051,540 1,689
Human services / community support 1,708,000 1,701,055 1,587,828 113,227
Total other functions 2,702,782 2,754,284 2,639,368 114,916
Continued…
-21-
City of Lansing
Statement of Revenues, Expendituresand Changes in Fund Balances - Budget and Actual (Concluded)
General FundFor the Year Ended June 30, 2006
Budget Variance with
Original Final Actual Final Budget
Expenditures (concluded)
Debt service:
Principal 1,296,081$ 536,528$ 536,528$ -$
Interest and fees 161,219 122,453 122,453 -
Total debt service 1,457,300 658,981 658,981 -
Total expenditures 99,497,578 100,526,740 99,806,260 720,480
Revenues over (under) expenditures 4,146,968 4,993,841 4,980,300 (13,541)
Other financing sources (uses)
Transfers in 2,200,000 2,306,967 2,081,511 (225,456)
Transfers out (6,683,968) (8,104,088) (7,758,507) 345,581
Proceeds on sale of capital assets 337,000 521,752 582,383 60,631
Total other financing sources (uses) (4,146,968) (5,275,369) (5,094,613) 180,756
Net change in fund balance - (281,528) (114,313) 167,215
Fund balance, beginning of year 7,192,498 7,192,498 7,192,498 -
Fund balance, end of year 7,192,498$ 6,910,970$ 7,078,185$ 167,215$
The accompanying notes are an integral part of the financial statements.
City of Lansing
Statement of Net AssetsProprietary Funds
June 30, 2006
Business-type Activities - Enterprise Funds Governmental
Sewage Municipal Other Activities -
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Assets
Current assets:
Cash and cash equivalents 16,277,240$ 2,416,499$ 20,338$ 18,714,077$ -$
Equity in pooled cash - 8,296,819 1,448,792 9,745,611 2,773,295
Receivables:
Accounts, net 2,969,145 595,770 220,677 3,785,592 701,075
Accrued interest 73,507 377,709 - 451,216 -
Lease receivable, current - 2,329,691 - 2,329,691 -
Inventories 242,249 - 96,323 338,572 271,796
Prepaids - - - - 549,235
Due from other funds 4,394,218 - - 4,394,218 10,000
Interfund receivable --- - 1,278,309
Restricted assets:
Cash and cash equivalents 36,533,287 255,357 - 36,788,644 -
Accounts receivable - 419,583 - 419,583 -
Accrued interest receivable 198,282 946 - 199,228 -
Total current assets 60,687,928 14,692,374 1,786,130 77,166,432 5,583,710
Noncurrent assets:
Lease receivable - 23,531,872 - 23,531,872 -
Bond issue costs 504,126 419,526 - 923,652 6,321
Capital assets, net 288,273,761 43,703,212 10,563,665 342,540,638 4,802,726
Total non-current assets 288,777,887 67,654,610 10,563,665 366,996,162 4,809,047
Total assets 349,465,815 82,346,984 12,349,795 444,162,594 10,392,757
Liabilities
Current liabilities:
Accounts payable 2,776,860 74,289 135,139 2,986,288 35,552
Deposits payable - 34,755 - 34,755 -
Accrued interest payable 905,078 136,946 12,254 1,054,278 25,145
Accrued payroll 156,695 68,606 150,153 375,454 36,952
Other --- - 696,750
Due to other funds 3,856,523 475 - 3,856,998 -
Interfund payable - - 426,579 426,579 -
Advances from other funds - 192,439 - 192,439 -
Due to other governments 125,089 - - 125,089 -
Unearned revenues - - 100,516 100,516 -
Current portion of:
Long-term debt 9,510,000 5,479,472 60,000 15,049,472 115,000
Compensated absences 433,602 109,973 273,070 816,645 85,067
Total current liabilities 17,763,847 6,096,955 1,157,711 25,018,513 994,466
Noncurrent liabilities:
Long-term debt 135,231,535 57,268,350 830,134 193,330,019 1,295,000
Compensated absences 197,046 29,737 109,167 335,950 33,300
Total non-current liabilities 135,428,581 57,298,087 939,301 193,665,969 1,328,300
Total liabilities 153,192,428 63,395,042 2,097,012 218,684,482 2,322,766
Net assets
Invested in capital assets, net of related debt 144,036,352 7,614,188 9,673,531 161,324,071 3,373,902
Restricted for debt retirement 35,826,491 119,357 - 35,945,848 -
Restricted for capital projects - 419,583 - 419,583 -
Unrestricted 16,410,544 10,798,814 579,252 27,788,610 4,696,089
Total net assets 196,273,387$ 18,951,942$ 10,252,783$ 225,478,112$ 8,069,991$
The accompanying notes are an integral part of the financial statements.
-22-
City of Lansing
Statement of Revenues, Expenses
and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended June 30, 2006
Business-type Activities - Enterprise Funds Governmental
Sewage Municipal Other Activities -
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Operating revenues
Charges for services 26,785,110$ 8,358,604$ 5,710,787$ 40,854,501$ 21,975,436$
Operating expenses
Personal services 6,086,604 2,388,375 4,973,077 13,448,056 1,399,106
Purchase of goods and services 6,781,138 1,557,078 3,693,995 12,032,211 19,914,957
Depreciation 6,106,404 2,692,446 547,330 9,346,180 854,886
Total operating expenses 18,974,146 6,637,899 9,214,402 34,826,447 22,168,949
Operating income (loss) 7,810,964 1,720,705 (3,503,615) 6,028,054 (193,513)
Nonoperating revenues (expenses)
Interest revenue 1,064,854 352,124 36,098 1,453,076 15,531
Gain (loss) on sale of capital assets 3,864 (7,695,962) (6,962) (7,699,060) -
Interest expense and fees (2,692,349) (4,064,956) (50,821) (6,808,126) (79,358)
Amortization of bond issue costs (40,042) - - (40,042) (654)
Other revenue 82,500 1,931,226 - 2,013,726 -
Total nonoperating expenses (1,581,173) (9,477,568) (21,685) (11,080,426) (64,481)
Income (loss) before
contributions and transfers 6,229,791 (7,756,863) (3,525,300) (5,052,372) (257,994)
Capital contributions - - 1,368,773 1,368,773 -
Transfers in 500,000 - 2,951,725 3,451,725 -
Transfers out (300,000) - (19,260) (319,260) -
Change in net assets 6,429,791 (7,756,863) 775,938 (551,134) (257,994)
Net assets, beginning of year 189,843,596 26,708,805 9,476,845 226,029,246 8,327,985
Net assets, end of year 196,273,387$ 18,951,942$ 10,252,783$ 225,478,112$ 8,069,991$
The accompanying notes are an integral part of the financial statements.
-23-
City of Lansing
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2006
Business-type Activities - Enterprise Funds Governmental
Sewage Municipal Other Activities -
Disposal Parking Enterprise Internal
System System Funds Totals Service Funds
Cash flows from operating activities
Cash received from customers 26,873,734$ 7,461,026$ 5,718,877$ 40,053,637$ -$
Cash received from interfund services - - - - 25,475,829
Cash payments for goods and services (8,229,101) (1,460,540) (3,643,343) (13,332,984) (20,508,697)
Cash payments to employees (6,053,417) (2,369,194) (4,933,381) (13,355,992) (1,385,329)
Other receipts 82,500 1,931,226 - 2,013,726 -
Net cash provided by (used for)
operating activities 12,673,716 5,562,518 (2,857,847) 15,378,387 3,581,803
Cash flows from noncapital financing activities
Transfers in 500,000 - 2,951,725 3,451,725 -
Transfers out (300,000) - (19,260) (319,260) -
Net cash provided by (used for)
noncapital financing activities 200,000 - 2,932,465 3,132,465 -
Cash flows from capital and related financing activities
Proceeds from sale of capital assets 3,864 2,651,918 - 2,655,782 -
Acquisition and construction of capital assets (20,025,285) (415,957) (1,472,456) (21,913,698) (1,052,347)
Capital contributions received - - 1,368,773 1,368,773 -
Principal paid on revenue and general obligation bonds (8,670,000) (21,335,000) (55,000) (30,060,000) (110,000)
Interest paid on revenue and general obligation bonds (2,648,475) (1,762,416) (49,988) (4,460,879) (79,358)
Proceeds from issuance of long-term debt 14,074,219 15,975,000 - 30,049,219 -
Payments received on capital lease - 2,181,953 - 2,181,953 -
Net cash provided by (used for)
capital and related financing activities (17,265,677) (2,704,502) (208,671) (20,178,850) (1,241,705)
Cash flows from investing activities
Interest and dividends 1,064,854 352,124 36,098 1,453,076 15,531
Net increase (decrease) in cash and cash equivalents (3,327,107) 3,210,140 (97,955) (214,922) 2,355,629
Cash and cash equivalents, beginning of year 56,137,634 7,758,535 1,567,085 65,463,254 417,666
Cash and cash equivalents, end of year 52,810,527$ 10,968,675$ 1,469,130$ 65,248,332$ 2,773,295$
Reconciliation of operating income (loss) to
net cash provided by (used for) operating activities
Operating income (loss)7,810,964$ 1,720,705$ (3,503,615)$ 6,028,054$ (193,513)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities
Depreciation expense 6,106,404 2,692,446 547,330 9,346,180 854,886
Other receipts 82,500 1,931,226 - 2,013,726 -
Change in:
Accounts receivable 195,997 (928,883) 8,090 (724,796) 992,522
Accrued interest receivable (107,373) 31,305 - (76,068) 49
Inventory 14,447 - (956) 13,491 (39,182)
Prepaids - - - - (82,222)
Due from other funds (4,394,218) 2,434 - (4,391,784) -
Interfund receivable - - - - 2,507,822
Accounts payable 292,664 (61,729) 35,694 266,629 (15,716)
Deposits payable - (32,219) - (32,219) -
Accrued interest payable 11,815 (19,799) (674) (8,658) (1,962)
Accrued payroll 33,187 19,181 39,696 92,064 13,777
Other - - - - (460,405)
Due to other funds 2,677,865 475 - 2,678,340 -
Interfund payable - - 35,352 35,352 -
Advances from other funds - 192,439 - 192,439 -
Unearned revenues - - 4,772 4,772 -
Compensated absences (50,536) 14,937 (23,536) (59,135) 5,747
Total adjustments 4,862,752 3,841,813 645,768 9,350,333 3,775,316
Net cash provided by (used for) operating activities 12,673,716$ 5,562,518$ (2,857,847)$ 15,378,387$ 3,581,803$
The accompanying notes are an integral part of the financial statements.
-24-
Fiduciary Fund Financial Statements
Pension (and Other Post Employment Benefits) Trust Funds – Employee Pension Trust funds accept
payments made by the City, invest fund resources, and calculate and pay pensions to beneficiaries.
Combining schedules for fiduciary funds are presented in the notes to the financial statements.
Agency Funds – These funds account for resources held in a trustee or agent capacity for the 54-A District Court.
Combining statements for agency funds are presented, by fund type, beginning on page 102.
City of Lansing
Statement of Fiduciary Net AssetsFiduciary Funds
June 30, 2006
Pension Agency
Trust Funds Funds
Assets
Cash and cash equivalents 10,948,913$ 118,697$
Equity in pooled cash - 139,682
Investments:
U. S. Government obligations 85,120,778 -
Corporate bonds 1,258,867 -
Common stocks 44,865,359 -
Mutual funds 337,289,036 -
Contribution receivable 3,172,560 -
Dividends and interest receivable 658,080 -
Total assets 483,313,593 258,379$
Liabilities
Accounts payable 561,547 -
Undistributed receipts - 258,379
Total liabilities 561,547 258,379$
Net assets held in trust for
pension benefits 482,752,046$
The accompanying notes are an integral part of the financial statements.
-25-
City of Lansing
Statement of Changes in Fiduciary Net AssetsPension Trust Funds
For the Year Ended June 30, 2006
Additions
Investment income:
Net appreciation in fair value
of investments 18,614,998$
Interest income 15,007,299
Dividend income 3,045,215
Less investment expenses (1,208,550)
Net investment income 35,458,962
Contributions:
Employer 11,528,485
Plan members 4,546,438
Total contributions 16,074,923
Total additions 51,533,885
Deductions
Participant benefits 35,514,249
Administrative expense 194,444
Total deductions 35,708,693
Net additions to net assets held in trust 15,825,192
Net assets held in trust for pension benefits:
Beginning of year 466,926,854
End of year 482,752,046$
The accompanying notes are an integral part of the financial statements.
-26-
COMPONENT UNITS
FINANCIAL STATEMENTS
Discretely Presented Component Units
Discretely presented component units are entities that are legally separate from the City but for which the City is
financially accountable, or their relationship with the City is such that exclusion would cause the City’s financial
statements to be misleading or incomplete. The City has three discretely presented component units:
Brownfield Redevelopment Authority
Tax Increment Financing Authority
Lansing Entertainment and Public Facilities Authority
Complete financial statements for each of the individual component units may be obtained from the entity's
administrative offices.
City of Lansing
Combining Statement of Net Assets
Component Units
June 30, 2006
Lansing
Tax Entertainment
Brownfield Increment & Public
Redevelopment Finance Facilities
Authority Authority Authority Totals
Assets
Cash and cash equivalents 330,483$ 274,322$ 597,185$ 1,201,990$
Receivables, net 21,000 29,135 513,999 564,134
Inventories, prepaids and other assets 71,328 44,375 113,803 229,506
Restricted assets:
Cash and cash equivalents - - 360,961 360,961
Capital assets being depreciated, net - - 140,100 140,100
Total assets 422,811 347,832 1,726,048 2,496,691
Liabilities
Accounts payable and accrued liabilities 29,931 10,700 671,929 712,560
Accrued interest payable 34,858 8,733,361 - 8,768,219
Unearned revenues - - 667,249 667,249
Long-term liabilities:
Due within one year - 2,372,519 18,329 2,390,848
Due in more than one year 2,225,000 30,407,176 67,279 32,699,455
Total liabilities 2,289,789 41,523,756 1,424,786 45,238,331
Net assets
Invested in capital assets, net of
related debt - - 54,492 54,492
Unrestricted (deficit) (1,866,978) (41,175,924) 246,770 (42,796,132)
Total net assets (deficit)(1,866,978)$ (41,175,924)$ 301,262$ (42,741,640)$
The accompanying notes are an integral part of the financial statements.
-27-
City of Lansing
Combining Statement of Activities
Component Units
For the Year Ended June 30, 2006
Lansing
Tax Entertainment
Brownfield Increment & Public
Redevelopment Finance Facilities
Authority Authority Authority Totals
Expenses
Brownfield redevelopment 520,818$ -$ -$ 520,818$
Community development - 3,716,189 - 3,716,189
Recreation and culture - - 5,603,087 5,603,087
Total expenses 520,818 3,716,189 5,603,087 9,840,094
Program revenues
Charges for services 2,500 - 4,781,436 4,783,936
Operating grants and contributions 53,996 - 866,012 920,008
Total program revenues 56,496 - 5,647,448 5,703,944
Net program expense (464,322) (3,716,189) 44,361 (4,136,150)
General revenues
Property taxes 390,125 4,980,319 - 5,370,444
Unrestricted investment earnings 15,912 80,192 7,884 103,988
Total general revenues 406,037 5,060,511 7,884 5,474,432
Change in net assets (58,285) 1,344,322 52,245 1,338,282
Net assets (deficit), beginning of year (1,808,693) (42,520,246) 249,017 (44,079,922)
Net assets (deficit), end of year (1,866,978)$ (41,175,924)$ 301,262$ (42,741,640)$
The accompanying notes are an integral part of the financial statements.
-28-
NOTES to the FINANCIAL STATEMENTS
-29-
City of Lansing, Michigan
Index
Notes to the Financial Statements
Page
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity.................................................................................................... 30
B. Basis of Presentation............................................................................................ 32
C. Measurement Focus / Basis of Accounting .......................................................... 34
D. Assets, Liabilities and Equity ............................................................................... 35
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information.......................................................................................... 37
B. Excess of Expenditures Over Appropriations....................................................... 38
C. Deficit Fund Balance/Net Assets.......................................................................... 38
3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments ..................................................................................... 39
B. Deposits, Investments and Securities Lending – Pension Trust Fund.................. 40
C. Receivables........................................................................................................... 44
D. Capital Assets ....................................................................................................... 45
E. Payables................................................................................................................ 47
F. Interfund Receivables, Payables and Transfers.................................................... 47
G. Long-term Debt..................................................................................................... 49
H. Segment Information – Enterprise Funds ............................................................ 53
I. Endowments ......................................................................................................... 53
4. OTHER INFORMATION
A. Risk Management................................................................................................. 54
B. Property Taxes...................................................................................................... 54
C. Contingent Liabilities .......................................................................................... 55
D. Defined Benefit Pension Plans ............................................................................. 55
E. Postemployment Benefits..................................................................................... 63
F. Restatements......................................................................................................... 63
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-30-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1-A. Reporting Entity
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:
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.
(1) Blended Component Units: 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:
(a) Building Authority (the “Authority”): The Authority was established by the City under
Act 31, Michigan Public Acts of 1948. The Mayor, with the advice and consent of City
Council, appoints the Authority's governing body and designates management. The
Authority uses the proceeds of its tax-exempt bonds to finance the construction or
acquisition of capital assets for the City only. The bonds are secured by lease agreements
with the City and will be retired through lease payments from the City. The financial
activity, assets, liabilities and equity of the Authority are incorporated within the City’s
Municipal Parking System and Golf enterprise funds, and the 1998 Building Authority Debt
Service Fund.
(2) Discretely Presented Component Units: Discretely presented component units are entities that
are legally separate from the City but for which the City is financially accountable, or their
relationship with the City is such that exclusion would cause the City’s financial statements to be
misleading or incomplete. The City has three discretely presented component units, the
Brownfield Redevelopment Authority, the Tax Increment Financing Authority and the Lansing
Entertainment and Public Facilities Authority, each with a fiscal June 30 year-end. The
discretely presented component units are as follows:
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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(a) Brownfield Redevelopment Authority: The Authority was established by the City on
August 17, 1997, under the authority contained in Act 381, Michigan Public Acts of 1996
(the Act). The Act authorizes the City to establish and to designate the boundaries of a
Brownfield redevelopment zone. The 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 Authority to participate in a
broad range of improvement activities intended to encourage the reuse of industrial and
commercial property by offering economic incentives for redevelopment to prevent
property value deterioration. Tax increment financing plans must be approved by the City.
Tax increment financing permits the Authority to capture tax revenues which are
attributable to increases in the value of real and personal property located within an
approved project area. Current activities of the Authority include collections of property tax
revenues on project areas for the Rite Aid Pharmacy and the former Motor Wheel Site
Plant.
(b) Tax Increment Finance Authority (“TIFA”): The TIFA was established by the City
under the authority contained in Act 450, Michigan Public Acts of 1981. The Act
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. The Act 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.
(c) Lansing Entertainment and Public Facilities Authority (“LEPFA”): LEPFA was
established under the charter of the City of Lansing in February 1996, replacing the former
Greater Lansing Convention/Exhibition Authority, which had been responsible for
operating and managing the Lansing Center and the Lansing Civic Arena (the latter through
the fiscal year ended June 30, 1995). LEPFA was established to oversee the management
and operations of the Lansing Center, the City Market and the Oldsmobile Park stadium.
The Authority 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 the Authority, all
assets and rights of the Authority shall revert to the City. The Authority's Board of
Commissioners consists of thirteen members appointed by the Mayor of the City of Lansing
and approved by the City Council.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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Component Unit Financial Statements: Complete financial statements for each of the
individual component units may be obtained from the entity's administrative offices.
City of Lansing Building Authority
8th Floor
124 West Michigan Avenue
Lansing, Michigan 48933
Brownfield Redevelopment Authority
401 S. Washington Square, Suite 100
Lansing, Michigan 48933
Tax Increment Finance Authority
401 S. Washington Square, Suite 100
Lansing, Michigan 48933
Lansing Entertainment and Public Facility Authority
333 East Michigan Avenue
Lansing, Michigan 48933
1-B. Basis of Presentation
Government-wide Financial Statements. The statements of net assets and activities display
information about the primary government (the City) and its component units. These statements
include the financial activities of the overall government, except for fiduciary activities.
Eliminations have been made to minimize the double-counting of internal activities. These
statements distinguish between the City’s governmental and business-type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues and other nonexchange
transactions. Business-type activities are financed in whole or in part by fees charged to external
parties.
The statement of activities presents a comparison between direct expenses and program revenues
for the different business-type activities of the City and for each function of the City’s governmental
activities. Direct expenses are those that are specifically associated with a program or function and,
therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been
made in the funds have been reversed for the statement of activities. Program revenues include (a)
fees, fines and charges paid by the recipients of goods or services offered by the programs and (b)
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular program. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements. The fund financial statements provide information about the City’s
funds, including its fiduciary funds and blended component unit. Separate statements for each fund
category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial
statements is on major governmental and enterprise funds, each displayed in a separate column. All
remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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The City reports the following major governmental funds:
General fund. This fund is the City’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The City reports the following major enterprise funds:
Sewage Disposal System Fund. This fund accounts for the provision of sewage disposal services
to the residents of the City.
Municipal Parking System Fund. This fund accounts for the operating of City-owned parking
facilities.
Additionally, the City reports the following fund types:
Special revenue funds. These funds account for revenue sources that are legally restricted to
expenditures for specific purposes not including major capital projects.
Debt service funds. These funds account for the resources accumulated and payments made for
principal and interest on long-term general obligation debt of governmental funds.
Capital projects funds. These funds account for the acquisition of capital assets or construction of major capital projects not being financed by proprietary funds.
Permanent funds. These 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. These 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. These funds account for operations that provide services to other
departments or agencies of the City, or to other governments, on a cost-reimbursement basis. This includes operating a maintenance facility for trucks and equipment used by the Public
Service Department, and health care self-insurance services.
Pension Trust Funds – These funds account for the accumulation of resources to be used for retirement
annuity payments to eligible full-time employees of the City, certain healthcare costs, and other
retirement distributions.
Agency Funds – These funds account for resources held in a trustee or agent capacity for the 54-A
District Court.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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1-C. Measurement Focus / Basis of Accounting
Government-wide, Proprietary and Fiduciary Fund Financial Statements. The government-wide,
proprietary and fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, except for agency funds, which do not have
a measurement focus. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each
party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and
investment earnings, result from nonexchange transactions or ancillary activities.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating
revenues of the City’s enterprise and internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or
giving) equal value in exchange, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Governmental Fund Financial Statements. Governmental funds are reported using the current
financial resources measurement focus and the modified accrual basis of accounting. Under this
method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if they are collected within three months after year-end, except for income taxes that use a 45-day collection period, property taxes that use a 60-day collection period, and reimbursement-based grants that use one year. Property taxes, income taxes, franchise taxes, licenses and interest are considered to be susceptible to accrual.
Expenditures are recorded when the related fund liability is incurred, except for principal and
interest on general long-term debt, compensated absences, and claims and judgments, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases, if any, are reported as other financing sources. Under the terms of grant agreements, the City funds certain programs by a combination of specific
cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program
expenses are incurred, there are both restricted and unrestricted net assets available to finance the
program. It is the City’s policy to first apply cost-reimbursement grant resources to such programs,
followed by categorical block grants, and then by general revenues, subject to satisfying any grant program matching provisions.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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All governmental and business-type activities and enterprise funds of the City follow private-sector standards of accounting and financial reported issued prior to December 1, 1989, unless those standards conflict with guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow
subsequent private-sector guidance.
1-D. Assets, Liabilities and Equity Deposits and Investments The City maintains an investment pool for all City funds. Each fund’s portion of the investment pool is displayed on the statement of net assets/balance sheet as “equity in pooled cash.” The City’s
cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition.
State statutes authorize the government to deposit in the accounts of federally insured banks, credit unions, and savings and loan associations, and to invest in obligations of the U.S. Treasury, certain commercial paper, repurchase agreements, bankers acceptances, and mutual funds composed of otherwise legal investments.
Investments are stated at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the
last reported sales price at current exchange rates. Mortgages are valued on the basis of future
principal and interest payments, and are discounted at prevailing interest rates for similar
instruments. Investments that do not have established market values are reported at estimated fair
value. Cash deposits are reported at carrying amounts, which reasonably approximates fair value.
Unrealized appreciation or depreciation on pension trust fund investments due to changes in fair
value are recognized each year.
Receivables and Payables
All trade and delinquent property tax receivables are shown net of an allowance for uncollectibles,
as applicable.
Certain notes receivable in governmental funds consist of rehabilitation and redevelopment loans
that are generally not expected or scheduled to be collected in the subsequent year.
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either interfund receivables/payables (i.e., the current
portion of interfund loans) or advances to/from other funds (i.e., the non-current portion of interfund
loans). All other outstanding balances between funds are reported as due to/from other funds. Any
residual balances outstanding between the governmental and business-type activities are reported in
the government-wide financial statements as internal balances.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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Inventories, Prepaid Items and Other Assets
All inventories are valued at cost using the first-in/first-out method. Inventories of governmental
funds are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items acquired or constructed since June 30, 1980), are reported in
the applicable governmental or business-type activities columns in the government-wide financial
statements. Capital assets that are used for governmental activities are only reported in the
government-wide statements. Infrastructure (“public domain”) assets, including roads, bridges,
sanitary sewers, drains, curbs, and gutters are capitalized. With this measurement focus, all assets
and liabilities (whether current or noncurrent) associated with the operations of these funds are
included on the government-wide statement of net assets.
All land and non-depreciable land improvements are capitalized, regardless of cost. Equipment and
vehicles are capitalized when the cost of individual items exceed $5,000. The road and sewer
networks are all capitalized regardless of cost. Buildings are capitalized over $100,000, and the
recreational facilities’ thresholds range from $25,000 to $50,000.
Capital assets of the primary government are depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings 20-50
Improvements 8-50
Equipment 3-15
Sanitary sewers 50
Infrastructure 10-75
Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and
compensatory time benefits, subject to certain limitations. Certain bargaining unit employees are
also permitted to accumulate earned but unused sick leave. All vacation and compensatory time pay
and 50 percent of sick leave are accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if
they have matured, for example, as a result of employee resignations or retirements.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over
the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are reported as deferred charges and
amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for a
specific purpose. Fund balance designations represent tentative management plans that are subject
to change.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
2-A. Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
On or before the fourth Monday in March, the Mayor submits to the City Council a proposed
operating budget for the fiscal year commencing the following July 1. The operating budget
includes proposed expenditures and the means of financing them.
A public hearing on the proposed use of funds is held by the Mayor, and a public hearing on the
annual appropriations as proposed by the City Council is held no later than one week prior to
adoption of the annual appropriation measure.
Not later than the third Monday in May, the Council adopts a budget for the ensuing fiscal year,
makes an appropriation of the money needed therefore, and sets the property tax rate necessary
to support the appropriations measure.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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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. The legal level
of budgetary control is the mandatory expenditure accounts level. The mandatory accounts are
personal services, supplies and operating expense, capital outlay, debt service, transfers and
contingency. Transfers of appropriations between the mandatory accounts require the approval
of the City Council. However, the Mayor may authorize budget transfers between mandatory
accounts in a department, but the additional amount may not exceed fifteen (15%) of the
Council's appropriation being added to, or five thousand dollars ($5,000), whichever is less.
Budget-to-actual schedules that demonstrate compliance at the legal level of budgetary control
are not included herein as it would be impractical due to the high level of detail that would be
needed. Such schedules are included in the City's separately issued Budget Report. Copies of
the report may be obtained from the Finance Department, 124 West Michigan Avenue, Lansing,
Michigan 48933.
The City formally adopts operating budgets for the General Fund and all Special Revenue
Funds.
Budgetary integration is employed as a management control device during the year for all
budgeted funds. Except for the General Fund, these budgets are adopted on a basis consistent
with generally accepted accounting principles ("GAAP"). In the General Fund, capital lease
payments / installment payments are budgeted, but capital lease acquisitions are not.
Appropriations lapse at year-end for all annual budgets. Appropriations are automatically
carried forward for project-type budgets.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders
or contracts) outstanding at year end are reported as reservations of fund balances and do not
constitute expenditures or liabilities because the commitments will be reappropriated and honored
during the subsequent year.
2-B. Excess of Expenditures Over Appropriations
State statutes provide that a local unit shall not incur expenditures in excess of the amount
appropriated. The approved budgets of the City were adopted on a departmental activity basis level.
Expenditures in the general administration function of the General Fund exceeded the approved budget by $78,400. In addition, expenditures in the public safety function of the Drug Law Enforcement special revenue fund exceeded the approved budget by $339,671.
2-C. Deficit Fund Balance/Net Assets
The Special Assessments capital projects funds has a deficit fund balance of $333,913. This deficit
is the result of a long-term advance from the general fund that was used to provide the working
capital for the fund in prior years. As special assessments are collected, this deficit will be
eliminated, and the advance repaid.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-39-
The Golf Enterprise Fund has a deficit in its unrestricted net assets of $430,136. Total net assets
amount to $2,071,597. The Garbage and Rubbish Collection Enterprise Fund has a deficit net
assets balance of $90,769.
NOTE 3 – DETAILED NOTES ON ALL FUNDS 3-A. Deposits and Investments
Following is a reconciliation of deposit and investment balances (including both pooled cash and
investments as well as pension trust fund balances; see Note 3-B) as of June 30, 2006:
Statement of Net Assets
Cash and investments $ 64,363,193 Restricted cash and investments 36,788,644
Statement of Fiduciary Net Assets Pension trust funds:
Cash and cash equivalents 10,948,913 Investments 468,534,040
Agency fund:
Cash and cash equivalents 118,697 Equity in pooled cash 139,682
Total $ 580,893,169
Deposits and Investments: Bank deposits:
Checking/savings accounts $ 523,673
Certificates of deposit (due within one year) 45,003,125 Investments in securities and mutual funds:
Pooled investments 55,683,030 Pension investments 479,482,953
Cash on hand 200,388
Total $ 580,893,169
The City chooses to disclose its pooled investments by specifically identifying each. As of year
end, the City had the following pooled investments.
Carrying
Amount
(Fair
Value) Credit Rating
Mutual and cash management funds
(uncategorized as to risk) $ 55,683,030 -n/a-
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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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.
Credit Risk. State law limits investments to specific government securities, certificates of deposits
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, have been identified above for the City’s investments.
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, $45,884,378 of the City’s bank balance of
$47,009,030 was exposed to custodial credit risk because it was uninsured and uncollateralized.
The City’s investment policy does not specifically address this risk, although the City believes that
due to the dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to
insure all bank deposits. As a result, the City evaluates each financial institution with which it
deposits City funds and assesses the level of risk of each institution; only those institutions with an
acceptable estimated risk level are used as depositories.
Custodial Credit Risk – Investments. 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.
Concentration of Credit Risk. 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.
3-B. Deposits, Investments and Securities Lending – Pension Trust Funds
The deposits and investments of the City’s pension 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 deposits and investments are
presented separately.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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Deposits - The pension trust funds do not maintain any checking or other demand/time deposit
accounts. Amounts reported as cash and cash equivalents in the statement of plan net assets are
composed entirely of short-term investments in money market accounts.
Investments - The Michigan Public Employees Retirement Systems’ Investment Act, Public Act
314 of 1965, as amended, authorizes the pension trust funds to invest in stocks, government and
corporate securities, mortgages, real estate, and various other investment instruments, subject to
certain limitations. The retirement boards have the responsibility and authority to oversee the
investment portfolio. Various professional investment managers are contracted to assist in
managing the pension trust funds’ assets. All investment decisions are subject to Michigan law and
the investment policy established by the retirement boards.
The investments of each pension trust fund are held in a bank-administered trust fund. Following is
a summary of pension investments as of June 30, 2006:
Employees'
Police Money
Employees' and Fire Purchase Retiree
Retirement Retirement Pension Health Care
System System Plan VEBA Totals
Investments at fair value, as determined
by quoted market price:
U.S. treasuries:
Not on securities loan 3,644,608$ 4,118,700$ -$ -$ 7,763,308$
On securities loan 6,887,284 9,792,388 - - 16,679,672
U.S. agencies:
Not on securities loan 24,837,429 32,914,964 - - 57,752,393
On securities loan 1,848,722 746,542 - - 2,595,264
Domestic corporate securities:
Not on securities loan - 1,258,867 - - 1,258,867
Collateralized mortgage obligations 137,561 192,580 - - 330,141
Domestic equities:
Not on securities loan 9,163,034 16,819,790 - - 25,982,824
On securities loan 6,993,123 10,722,659 - - 17,715,782
International equities:
Not on securities loan 240,070 375,056 - - 615,126
On securities loan 222,854 328,773 - - 551,627
Real estate investment funds 10,356,539 14,376,438 - - 24,732,977
International equity mutual funds 63,433,698 91,612,000 - - 155,045,698
Domestic equity mutual funds 36,403,029 42,850,413 2,784,932 1,824,680 83,863,054
Domestic securities mutual funds 29,091,018 42,759,794 - 1,796,495 73,647,307
Money market funds 5,840,279 5,108,634 - - 10,948,913
Total investments 199,099,248$ 273,977,598$ 2,784,932$ 3,621,175$ 479,482,953$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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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 investments
were rated by Standard & Poor’s as follows:
Employees'
Police Money
Employees' and Fire Purchase Retiree
Retirement Retirement Pension Health Care
System System Plan VEBA Totals
AAA 3,577,908$ 4,140,507$ -$ -$ 7,718,415$
Not rated 52,572,855 74,037,118 - 1,796,495 128,406,468
Assets not subject
to credit risk 142,948,486 195,799,972 2,784,932 1,824,680 343,358,070
199,099,248$ 273,977,598$ 2,784,932$ 3,621,175$ 479,482,953$
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 are not subject to custodial credit risk.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
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Concentration of Credit Risk. At June 30, 2006, the pension investment portfolio was concentrated
as follows:
Police
Employees' and Fire
Retirement Retirement
Investment Type Issuer System System
U.S. Agencies FHLMC 6.1% 5.2%
U.S. Agencies FNMA 6.8% 6.4%
The City’s pension investment policies require diversification of fixed income securities; however,
they do not specify percentages of dollar amounts by industry or issuer.
Interest Rate Risk. As of June 30, 2006, maturities of the City’s pension debt securities were as
follows:
Investment Maturities (Fair Value)
Less than Retirement Pension More than
1 year 1 - 5 years 6 - 10 years 10 years Total
Employees' Retirement System:
U.S. treasuries 1,557,162$ 120,153$ 3,100,401$ 5,754,176$ 10,531,892$
U.S. agencies 20,931 2,304,401 12,935,454 11,425,365 26,686,151
Collateralized mortgage obligations - - - 137,561 137,561
1,578,093$ 2,424,554$ 16,035,855$ 17,317,102$ 37,355,604$
Police and Fire Retirement System:
U.S. treasuries 1,522,641$ -$ 5,640,132$ 6,748,315$ 13,911,088$
U.S. agencies 39,761 3,365,056 16,861,305 13,395,384 33,661,506
Domestic corporate securities - 1,116,791 142,076 - 1,258,867
Collateralized mortgage obligations - - - 192,580 192,580
1,562,402$ 4,481,847$ 22,643,513$ 20,336,279$ 49,024,041$
The City’s pension investment policies provide that the average duration of fixed income securities
shall not deviate from the Lehman Brothers Aggregate Index duration by +/-20%.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-44-
Securities Lending. Under contracts approved by the City, the pension 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 funds’ custodial banks manage the securities
lending programs and receive cash as collateral. The collateral securities cannot be pledged or sold
by the City unless the borrower defaults. Collateral cash is initially pledged at 100 percent of the
fair value of the securities lent, and may not fall below 95 percent of the market value of the loaned
security during the term of the loan. At all times, collateral cannot be more than $100,000 less than
the market value of the loaned security. There are no restrictions on the amount of securities that
can be loaned. Securities on loan at year-end are classified in the preceding schedule of custodial
credit risk according to the category for the collateral received on the securities lent. At year-end,
the pension trust funds have no credit risk exposure to borrowers because the amounts the City
owes the borrowers exceed the amounts the borrowers owe the City. The contract with the pension
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.
3-C. Receivables
Receivables are comprised of the following:
Business-
Governmental Type
Activities Activities
Accounts receivable, net $ 10,083,696 $ 3,785,592
Taxes receivable 4,084,933 -
Special assessments receivable 1,162,420 -
Loans receivable 1,410,149 -
Accrued interest receivable 1,594,910 451,216
Due from other governments 10,581,217 -
Lease receivable - 25,861,563
$ 28,917,325 $ 30,098,371
Amount not expected to be
collected within one year $ 3,852,683 $ 23,531,872
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-45-
3-D. Capital Assets Capital assets activity for the year ended June 30, 2006, was as follows: Primary government
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets, not being depreciated:
Land 24,653,668$ 16,400$ (80,000)$ 24,590,068$
Construction in progress 6,060,816 6,946,561 (3,466,565) 9,540,812
Total capital assets not being depreciated 30,714,484 6,962,961 (3,546,565) 34,130,880
Capital assets, being depreciated:
Land improvements 8,187,651 634,481 - 8,822,132
Equipment and vehicles 34,334,620 3,522,788 (697,085) 37,160,323
Buildings 88,057,663 813,070 - 88,870,733
Infrastructure 321,551,387 1,753,520 (7,472,662) 315,832,245
Total capital assets being depreciated 452,131,321 6,723,859 (8,169,747) 450,685,433
Less accumulated depreciation for:
Land improvements (3,905,296) (433,065) - (4,338,361)
Equipment and vehicles (28,494,818) (2,118,630) 697,085 (29,916,363)
Buildings (39,123,416) (2,685,945) - (41,809,361)
Infrastructure (188,976,961) (8,965,971) 5,479,952 (192,462,980)
Total accumulated depreciation (260,500,491) (14,203,611) 6,177,037 (268,527,065)
Total capital assets, being depreciated, net 191,630,830 (7,479,752) 1,992,710 182,158,368
Governmental activities capital assets, net 222,345,314$ (516,791)$ 1,553,855$ 216,289,248$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-46-
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets, not being depreciated:
Land 22,625,416$ 218,409$ (8,954,283)$ 13,889,542$
Construction in progress 58,275,709 21,126,746 (14,300,854) 65,101,601
Total capital assets not being depreciated 80,901,125 21,345,155 (23,255,137) 78,991,143
Capital assets, being depreciated:
Land improvements 23,683,844 998,399 (3,220,406) 21,461,837
Equipmnet and vehicles 5,269,324 127,848 (29,669) 5,367,503
Buildings 192,821,951 1,085,499 - 193,907,450
Sewers 165,834,553 12,657,651 - 178,492,204
Total capital assets being depreciated 387,609,672 14,869,397 (3,250,075) 399,228,994
Less accumulated depreciation for:
Land improvements (9,426,921) (552,642) 1,819,847 (8,159,716)
Equipment and vehicles (4,020,337) (367,648) 29,669 (4,358,316)
Buildings (81,408,805) (5,100,045) - (86,508,850)
Sewers (33,326,772) (3,325,845) - (36,652,617)
Total accumulated depreciation (128,182,835) (9,346,180) 1,849,516 (135,679,499)
Total capital assets, being depreciated, net 259,426,837 5,523,217 (1,400,559) 263,549,495
Business-type activities capital assets, net 340,327,962$ 26,868,372$ (24,655,696)$ 342,540,638$
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 669,250$
Public safety 1,039,736
Public works 8,990,396
Recreation 1,347,911
Community development 1,301,432
Internal service 854,886
Total depreciation expense - governmental activities 14,203,611$
Business-type activities:
Sewage disposal system 6,106,404$
Potter Park Zoo 380,048
Golf 116,844
Municipal parking system 2,692,446
Other 50,438
Total depreciation expense - business-type activities 9,346,180$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-47-
3-E. Payables
Accounts payable and accrued liabilities are comprised of the following:
Business-
Governmental Type
Activities Activities
Accounts payable $ 7,773,873 $ 2,986,288
Deposits payable 336,768 34,755
Accrued payroll 1,957,454 375,454
Contract retainage payable 2,041,032 -
Indemnity bonds 14,774 -
Due to other governments 1,262,802 125,089
Other 976,328 -
$ 14,363,031 $ 3,521,586
3-F. Interfund Receivables, Payables and Transfers
At June 30, 2006, amounts due to/due from other funds were as follows:
Due From
Nonmajor Sewage Municipal
General Governmental Disposal Parking
Fund Funds System System Total
Due to:
General Fund -$ 244,337$ 3,856,523$ 475$ 4,101,335$
Nonmajor governmental funds - 46,052 - - 46,052
Sewage Disposal System 4,394,218 - - - 4,394,218
Internal service funds 10,000 - - - 10,000
4,404,218$ 290,389$ 3,856,523$ 475$ 8,551,605$
The above balances generally resulted from a time lag between the dates that interfund goods and
services are provided or reimbursable expenditures occur, transactions are recorded in the
accounting system, and payments between funds are made.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-48-
At June 30, 2006, advances to/due from other funds were as follows:
Advances To Advances From
Other Funds Other Funds
General Fund 601,263$ -$
Municipal Parking System - 192,439
Nonmajor governmental funds 192,439 601,263
793,702$ 793,702$
In addition, at June 30, 2006, the following interfund receivables/payables were reported for funds
with negative equity in pooled cash and investments:
Interfund Interfund
Receivable Payable
General Fund -$ 883,765$
Nonmajor governmental funds 5,728,059 5,696,024
Nonmajor enterprise funds - 426,579
Internal service funds 1,278,309 -
7,006,368$ 7,006,368$
For the year then ended, interfund transfers consisted of the following:
Transfer To
Nonmajor Sewage Nonmajor
General Governmental Disposal Enterprise
Fund Funds System Funds Total
Transfer From
General Fund -$ 4,679,279$ 500,000$ 2,579,228$ 7,758,507$
Nonmajor governmental funds 1,781,511 1,390,948 - 372,497 3,544,956
Sewage Disposal System 300,000 - - - 300,000
Nonmajor enterprise funds - 19,260 - - 19,260
2,081,511$ 6,089,487$ 500,000$ 2,951,725$ 11,622,723$
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund
that is required or allowed to expend them; (2) move receipts restricted to or allowed for debt
service from the funds collecting the receipts to the debt service fund as debt service payments
become due; and (3) use unrestricted revenues collected in the general fund to finance various
programs accounted for in other funds in accordance with budgetary authorizations.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-49-
3-G. Long-term Debt
General obligation bonds. The government issues general obligation bonds to provide funds for the
acquisition and construction of major capital facilities. General obligation bonds are direct
obligations and pledge the full faith and credit of the government. These bonds are issued as 10 to
30-year serial bonds with varying amounts of principal maturing each year. General obligation
bonds currently outstanding are as follows:
Interest Original
Rate Amount Amount
General obligation bonds
Governmental activities
1996 Unlimited Tax Refunding Bond 5.00% 10,800,000$ 4,215,000$
1998 Building Authority Limited Tax Bond 4.50% 2,175,000 100,000
1999 Fire Station Unlimited Tax Bond 5.00%-5.70% 3,000,000 2,390,000
2001 Fire Station Unlimited Tax Bond 4.00%-5.00% 4,000,000 3,470,000
2006 Lansing Center Limited Tax Bonds 3.50%-4.30% 4,000,000 4,000,000
2006 Michigan Transportation Fund Limited Tax Bonds 3.50%-3.60% 1,600,000 1,600,000
2005 Building Authority Refunding Bonds 3.50%-5.00% 1,470,000 1,470,000
27,045,000$ 17,245,000$
Business-type activities
1986 Building Authority Municipal Parking System Limited Tax Bond 2.50% 800,000$ -$
1990 Building Authority Municipal Parking System Limited Tax Bond 0.00% 64,635,000 37,265,000
1995 Building Authority Municipal Parking System Limited Tax Bond 5.00% 25,100,000 -
2003 Building Authority A Municipal Parking System Limited Tax Bond 6.63% 10,340,000 10,185,000
2003 Building Authority B Municipal Parking System Taxable Bond 2.50% 8,660,000 8,430,000
2005 Building Authority Refunding Bonds 3.50-5.00% 15,975,000 15,170,000
1996 Building Authority Golf Course Limited Tax Bond 2.50% 1,300,000 895,000
1992 Limited Tax Sewer Bond - 5005-01 2.50% 7,128,800 3,185,000
1993 Limited Tax Sewer Bond - 5005-02 2.50% 8,150,050 3,925,000
1994 Limited Tax Sewer Bond - 5005-03 2.50% 3,234,722 1,705,000
1994 Limited Tax Sewer Bond - 5005-04 2.00% 3,727,138 1,852,138
1994 Limited Tax Sewer Bond - 5005-05 2.25% 515,969 230,000
1994 Limited Tax Sewer Bond - 5005-06 2.25% 7,595,611 3,845,000
1996 Limited Tax Sewer Bond - 5005-07 2.25% 3,365,073 2,010,073
1996 Limited Tax Sewer Bond - 5005-08 2.25% 3,995,000 2,610,000
1997 Limited Tax Sewer Bond - 5005-09 2.25% 4,746,780 3,241,780
1998 Limited Tax Sewer Bond - 5005-10 2.25% 10,539,950 7,724,950
1999 Limited Tax Sewer Bond - 5005-11 2.50% 10,120,000 7,595,000
2000 Limited Tax Sewer Bond - 5005-12 2.50% 9,447,830 7,427,830
2001 Limited Tax Sewer Bond - 5005-13 2.50% 10,573,046 8,808,046
2002 Limited Tax Sewer Bond - 5005-14 2.50% 13,416,816 12,341,816
2003 Limited Tax Sewer Bond - 5005-15 2.50% 10,259,826 9,854,826
2004 Limited Tax Sewer Bond - 5005-16 2.13% 3,070,277 3,070,277
2005 Limited Tax Sewer Bond - 5005-17 2.13% 4,739,023 8,066,646
2005 Limited Tax Sewer Bond - 5005-18 1.63% 7,958,871 7,958,871
2006 Limited Tax Sewer Bond - 5005-19 1.63% 1,426,751 1,426,751
250,821,533$ 168,824,004$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-50-
During the year ended June 30, 2006, the Building Authority issued $17,445,000 of general
obligation bonds to provide resources to refund $1,490,000 of the 1998 Building Authority Limited
Tax Bonds and $15,930,000 of the 1995 Building Authority Municipal Parking System Limited Tax
Bonds. The proceeds of the refunding were placed in an irrevocable trust to make future debt
payments on the refunded bonds. As a result, the refunded bonds are considered to be defeased and
the liability has been removed from the statement of net assets. The refunding was undertaken to
reduce future debt service payments by $269,555 and resulted in an economic gain of $1,108,606.
At year end, defeased bonds outstanding consisted of $1,490,000 of the 1998 Building Authority
Limited Tax Bonds, which are scheduled to be paid by the escrow agent on June 1, 2007.
Special assessment bonds. The City also issues bonds to finance certain public improvements that
benefit specific districts. These districts are special assessed, at least in part, for the cost of the
improvements. Under Michigan law, the City is secondarily liable for repayment of these bonds.
Special assessment bonds outstanding at year-end are as follows:
Interest Original
Rate Amount Amount
Special assessment bonds
Governmental activities
1990 Limited Tax Special Assessment Bond 5.00% 800,000$ 25,000$
Revenue bonds. The City also issues bonds where the income derived from the acquired or
constructed assets is pledged to pay debt service. Revenue bonds outstanding at year-end are as
follows:
Interest Original
Rate Amount Amount
Revenue bonds
Business-type activities
1994 Sewage Disposal System Revenue Bond 5.30% 3,125,000$ -$
1998 Sewer Revenue & Refunding Bond 2.50% 26,415,000 9,380,000
2003 Sewer Revenue & Refunding Bond 2.50% 39,880,000 38,525,000
69,420,000$ 47,905,000$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-51-
Installment purchase agreements. The government enters into installment purchase agreements for
equipment and related capital assets. Installment purchase agreements outstanding at year-end are
as follows:
Interest Original
Rate Amount Amount
Installment purchase agreements
Governmental activities
2002 Lease Purchase Agreement - Computer Software 3.20% 1,500,000$ 630,000$
2004 Lease Purchase Agreement - Computer System 3.83% 209,873 43,181
2004 Lease Purchase Agreement - Roof and Fire Suppression 2.77% 570,000 439,038
1999 Lease Purchase Agreement - Stadium 5.20%-6.05% 11,000,000 3,920,000
2005 Lease Purchase Agreement - LEPFA Extractor and Wall 4.51% 392,046 323,923
2005 Lease Purchase Agreement - LEPFA Carpet 4.51% 126,418 116,261
2005 Lease Purchase Agreement - Income Tax Software 3.76% 430,000 390,530
2005 Lease Purchase Agreement - LEPFA Equipment 4.24% 81,500 78,194
2001 Lease Purchase Agreement - O&M Facility 5.35% 1,925,000 1,410,000
16,234,837$ 7,351,126$
Loans payable. The government has entered into loan agreements with the certain State agencies for
program purposes. Loans payable at year-end are as follows:
Interest Original
Rate Amount Amount
Loans payable
Governmental activities
2001 Michigan Department of Transportation Loan 4.00% 649,843$ 140,864$
2004 Michigan Department of Transportation Loan 3.00% 1,266,000 1,268,980
1,915,843$ 1,409,844$
Business-type activities
2003 MEDC Loan 4.00% 4,180,000$ 4,180,000$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-52-
Debt service requirements to maturity for all installment debt of the City are as follows:
Year
Ended Governmental Activities Business-Type Activities
June 30 Principal Interest Total Principal Interest Total
2007 3,990,909$ 1,209,662$ 5,200,571$ 15,049,472$ 5,994,919$ 21,044,391$
2008 4,170,973 1,006,804 5,177,777 14,581,239 5,844,086 20,425,325
2009 4,038,667 816,098 4,854,765 15,584,280 5,547,089 21,131,369
2010 2,516,766 618,630 3,135,396 15,624,203 5,243,224 20,867,426
2011 1,667,743 498,697 2,166,440 15,310,758 4,886,832 20,197,590
2012-2016 6,000,913 1,628,520 7,629,432 71,090,687 18,961,153 90,051,840
2017-2021 3,310,000 444,588 3,754,588 42,758,936 10,970,923 53,729,859
2022-2026 335,000 14,405 349,405 21,812,879 4,690,601 26,503,481
2027-2031 - - - 8,038,482 1,010,113 9,048,595
2032-2036 - - - 1,058,068 139,290 1,197,358
2036 - - - - - -
26,030,970$ 6,237,403$ 32,268,373$ 220,909,004$ 63,288,229$ 282,999,876$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-53-
Changes in Long-Term Debt. Long-term liability activity for the year ended June 30, 2006, was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Primary Government
Governmental activities
General obligation bonds 13,320,000$ 7,070,000$ 3,145,000$ 17,245,000$ 2,195,000$
Special assessment bonds 35,000 - 10,000 25,000 15,000
Installment purchase agreements 8,396,154 511,500 1,556,528 7,351,126 1,643,114
Loans payable 1,543,195 - 133,351 1,409,844 137,794
Subtotal 23,294,349 7,581,500 4,844,879 26,030,970 3,990,909
Compensated absences 11,026,167 7,792,972 8,469,867 10,349,272 8,723,963
Accrued workers compensation 3,619,376 2,722,794 1,343,916 4,998,254 1,955,102
Accrued general liability claims 400,000 - - 400,000 -
Add (deduct) deferred amounts:
For issuance discounts - (42,400) - (42,400) -
For issuance premiums - 52,982 - 52,982 -
On refunding - (14,575) - (14,575) -
38,339,892$ 18,093,273$ 14,658,662$ 41,774,503$ 14,669,974$
Business-type activities
General obligation bonds 165,029,785$ 30,049,219$ 26,255,000$ 168,824,004$ 10,860,000$
Revenue bonds 51,710,000 - 3,805,000 47,905,000 3,950,000
Loans payable 4,180,000 - - 4,180,000 239,472
Subtotal 220,919,785 30,049,219 30,060,000 220,909,004 15,049,472
Compensated absences 1,211,730 733,724 792,859 1,152,595 816,645
Add (deduct) deferred amounts:
For issuance discounts (13,263,627) (377,032) (3,077,961) (10,562,698) -
For issuance premiums 969,805 - 43,102 926,703 -
On refunding (2,597,762) (570,925) (275,169) (2,893,518) -
207,239,931$ 29,834,986$ 27,542,831$ 209,532,086$ 15,866,117$
For the governmental activities, compensated absences and other long-term debt are generally
liquidated by the general fund.
3-H. 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.
3-I. Endowments
For the year ended June 30, 2006, the net appreciation on investments available for of restricted
endowments was $51,603. Under the terms of the endowments, and consistent with State statutes,
the City is authorized to spend the net appreciation for the benefit of the cemetery and parks. The
expendable portion of earnings has been transferred to other funds. The remaining non-expendable
portion of the endowment is reported in restricted net assets.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-54-
NOTE 4 – OTHER INFORMATION
4-A. Risk Management
The City of Lansing is exposed to various risks of loss related to property loss, torts, errors and
omissions and employee injuries.
The City carries commercial insurance for claims relating to general liability, property, electronic
data processing, boiler and machinery, police professional and errors and omissions. The City has
not experienced settlements in excess of insurance coverage during the past three years.
The City is uninsured for acts of nature and environmental clean-up costs.
The City is self-insured for workers’ compensation costs. The City estimates the liability for
workers’ compensation claims that have been incurred through the end of the fiscal year, including
those claims that have been reported as well as those that have not yet been reported to the City.
The current liability is accounted for in the General Fund, with long term liabilities accounted for in
the Statement of Net Assets. The City has liability insurance coverage up to a maximum amount of
$16,000,000 per occurrence with a $350,000 deductible. Changes in the estimated long-term
liability as well as the total estimated cost of claims for the past two fiscal years were as follows:
Fiscal Year Ended June 30,
2006 2005
Estimated liability, beginning of year $ 3,619,376 $ 3,548,408
Estimated claims incurred, including changes in estimates 2,722,794 1,987,735
Claims payments (1,343,916) (1,916,767)
Estimated liability, end of year $ 4,998,254 $ 3,619,376
4-B. 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).
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-55-
The City is permitted by charter and state law to levy taxes up to $19.198 per $1,000 of assessed
valuation for general operations other than the payment of principal and interest on long-term debt.
The tax rate to finance general governmental services other than the payment of principal and
interest on long-term debt for the year ended June 30, 2006 was $14.90 per $1,000 of taxable value.
4-C. Contingent Liabilities
Amounts received or receivable from grantor agencies are subject to audit and potential adjustment
by grantor agencies, principally the federal government. Any disallowed claims, including amounts
already collected, may constitute a liability of the applicable funds. The amount, if any, of
expenditures which may be disallowed by the grantor cannot be determined at this time although the
government expects such amounts, if any, to be immaterial.
The government is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the government’s counsel that resolution of these matters
will not have a material adverse effect on the financial condition of the government.
4-D. Defined Benefit Pension Plans
Employees’ Retirement System
The City sponsors and administers the Employees’ Retirement System (the Plan), a single-
employer, defined-benefit pension plan. It is accounted for as a separate pension trust fund. No
stand-alone financial reports are issued. It covers general full-time employees of the City of
Lansing and employees of the 54-A District Court. It does not include elected officials, who are
members of the Employees’ Money Purchase Pension Plan, nor does it include police officers and
firefighters, who are members of a separate City pension plan. The payroll for employees covered
by the plan for the year ended December 31, 2005, was $30,851,025; the City’s total payroll was
$60,332,946. Administration of the plan is funded through the General Fund.
As of December 31, 2005, employee membership data was as follows:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 821
Active members:
Vested 278
Nonvested 377
655
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-56-
Approximately 22.5% of the active membership may retire with a combination of age plus service
equal to 65. All other members may retire at age 50 with 25 or more years of credited service or
age 58 with 8 or more years of credited service. Members are vested after completing 8 years of
credited service. For all members, annual regular retirement allowances are determined by
multiplying total credited service times 1.6% to 2.8% times final average compensation. Final
average compensation is the member's highest wages for two consecutive years during the last 10
years. Retirement options that provide for survivor benefits are available to members. The plan also
provides death and disability benefits. If a member leaves employment or dies before vesting,
accumulated member contributions plus interest are refunded to the member or designated
beneficiary. Members who are vested and terminate their employment have the option of deferring
retirement benefits until age 58 or withdrawing their contribution, thereby forfeiting any future
benefits.
Active members contribute between 1.7% and 7.25% of wages as determined by individual labor
agreements. Chapter 292 of the City of Lansing's Code of Ordinances establishes benefit provisions
and requires that the annuity and pension reserves (which are determined annually by the City’s
actuary) not financed by member contributions shall be financed by annual appropriations.
The City’s funding policy provides for periodic employer contributions at actuarially determined
rates that expressed as percentages of annual covered payroll, are designed to accumulate sufficient
assets to pay benefits when due. The normal cost and amortization payment for the year ended
June 30, 2006, was determined using an entry age actuarial funding method. Unfunded actuarial
accrued liabilities are being amortized as a level percent of payroll over an open period of 30 years.
Contributions are recognized when due pursuant to formal commitments, as well as statutory or
contractual requirements. The fund is accounted for in essentially the same manner as the
Proprietary Funds and uses the full accrual method of accounting.
Plan valuation assets are equal to the reported market value of assets except that only 20% of the
difference between the mark-to-market rate of return and the 8% actuarial rate of return is
recognized each year. This five year smoothing method reduces the fluctuation in the City’s
computed contribution rate which might otherwise be caused by market value fluctuations. The
entry-age actuarial cost method is used to determine plan liabilities. Significant actuarial
assumptions used in determining the entry-age actuarial accrued liability include (a) a rate of return
on investments of 8% per year compounded annually (b) projected salary increases of 4%
attributable to inflation and 0% to 4% per year depending on age attributable to seniority/merit (c)
assumption that benefits generally will increase $200 annually after age 60.
During the year ended June 30, 2006, total contributions of $6,473,472 were made in accordance
with actuarially determined requirements computed through an actuarial valuation performed as of
December 31, 2005. The City contributed $4,901,502 (14.36% of projected valuation payroll),
excluding contributions for health insurance; employees contributed $1,571,900 (4.6% of projected
valuation payroll). The City’s contribution consisted of (a) $3,444,291 normal cost (10.09% of
projected valuation payroll) and (b) $1,457,211 amortization of the unfunded actuarial accrued
liability (4.27% of projected valuation payroll).
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-57-
At December 31, 2005, the unfunded actuarial accrued liability was determined as follows:
Active participants (278 vested and 377 non-vested) $ 62,003,470
Retired participants and beneficiaries currently
receiving benefits (774 recipients) 165,146,943
Vested terminated participants not yet receiving benefits (47) 2,033,598
Member benefit reserve 16,058,298
Total actuarial accrued liability 245,242,309
Actuarial value of assets (smoothed market value) * 207,880,985
Unfunded Actuarial accrued liability $ 37,361,324
* Excluding reserve for health insurance
The City had initially contributed the annual required contributions (“ARC”), and thus, has never
actually had, or had need to report, a net pension obligation (“NPO”), as required under GASB
Statement No. 27.
Three-Year Trend Information
(amounts in thousands)
Annual
Years Ended Pension Percentage Net Pension
June 30, Cost (APC) Contributed Obligation
2004 $ 3,466 100% $ -
2005 4,675 100 -
2006 4,900 100 -
Police and Fire Retirement System
The City sponsors and administers the Police and Fire Retirement System (the plan), a single-
employer defined-benefit pension plan. It is accounted for as a separate pension trust fund. No
stand-alone financial reports are issued. It covers all police officers and firefighters who are full-
time employees of the City. The City’s payroll for employees covered by the plan for the year
ended December 31, 2005, was $27,855,441, the City’s total payroll was $60,332,946.
Administration of the plan is funded through the General Fund.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-58-
As of December 31, 2005, employee membership data related to the plan was as follows:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 629
Active members:
Vested 237
Nonvested 212
449
Members may retire at any age with 25 or more years of credited service, or age 55 with 10 or more
years of credited service. Members are vested after completing 10 years of credited service.
Members are required to retire at age 70. Annual retirement allowances are determined by
multiplying final average compensation by 3.2% for the first 25 years of credited service. The
maximum allowance is 80% of final average compensation. Final average compensation is the
member's highest wages for 2 consecutive years.
When an employee who had retired subsequent to August 31, 1966, dies, the plan provides for an
automatic pension to the retiree's spouse. This automatic pension is equal to 50% of the regular
retirement benefit the employee had been receiving at time of death. Effective July 30, 1990,
members may elect a reduced benefit, either 93% or 86% of the regular benefit, thereby increasing
the spouse pension to 75% or 86% of the regular benefit, respectively. Alternately, members may
elect a non-spousal beneficiary option. The plan provides death and disability benefits. If a member
leaves employment or dies before vesting, accumulated member contributions plus interest are
refunded to the member or designated beneficiary. Members who are vested and terminate their
employment have the option of deferred retirement benefits until age 55 or withdrawing their
contribution, thereby forfeiting any future benefits.
Fire members are required to contribute 7.58% of their annual wages to the plan. Police supervisors
are required to contribute 9.52% and police non-supervisors, 8.50%. Chapter 294 of the City of
Lansing's Ordinance establishes benefit provisions and requires that the portion of the annuity and
pension reserves (which are determined annually by the City’s actuary) not financed by member
contributions shall be financed by annual appropriations.
In addition to the payments under this plan, the City made payments from the General Fund to
provide benefits for the beneficiaries of a prior pension plan. This prior plan was superseded by the
present plan as of January 1, 1944. There were no payments made to beneficiaries under that plan.
The City’s funding policy provides for periodic employer contributions at actuarially determined
rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient
assets to pay benefits when due. The normal cost and amortization payment for the year ended
June 30, 2006, was determined using an entry age actuarial funding method. Unfunded actuarial
accrued liabilities are being amortized as a level percent of payroll over an open period of 30 years.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-59-
Plan valuation assets are equal to the reported market value of assets except that only 20% of the
difference between the mark-to-market rate of return and the 8% actuarial rate of return is
recognized each year. This five year smoothing method reduces the fluctuation in the City’s
computed contribution rate which might otherwise be caused by market value fluctuations. The
entry-age actuarial cost method is used to determine plan liabilities. Significant actuarial
assumptions used in determining the entry-age actuarial accrued liability include (a) a rate of return
on investments of 8% per year compounded annually (b) projected salary increases of 4%
attributable to inflation and .1 to 5.5% per year depending on age attributable to seniority/merit (c)
assumption that benefits generally will increase $525 annually after age 60.
During the year ended June 30, 2006, total contributions of $6,837,961 were made in accordance
with actuarially determined requirements computed through an actuarial valuation performed as of
December 31, 2005. The City contributed $4,658,703 (15.93% of projected valuation payroll),
excluding contributions for health insurance; employees contributed $2,179,258 (7.45% of
projected valuation payroll). The City’s contribution consisted of (a) $4,424,745 normal cost
(15.3% of projected valuation payroll) and (b) $233,958 amortization of the unfunded actuarial
accrued liability (0.80% of projected valuation payroll).
At December 31, 2005, the assets in excess of actuarial accrued liability were determined as
follows:
Active participants (237 vested and 212 non-vested) $ 93,295,783
Retired participants and beneficiaries currently
receiving benefits (615 recipients) 195,300,672
Vested terminated participants not yet receiving benefits (14) 1,702,368
Total actuarial accrued liability 290,298,823
Actuarial value of assets (smoothed market value) * 273,421,235
Unfunded Actuarial accrued liability $ 16,877,588
* Excluding reserve for health insurance
The City had initially contributed the annual required contributions (“ARC”), and thus, has never
actually had, or had a need to report, a net pension obligation (“NPO”), as required under GASB
Statement No. 27.
Significant actuarial assumptions used to compute contribution requirements were the same as those
used to compute the standardized measure of the actuarial accrual liability.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-60-
Three-Year Trend Information
(amounts in thousands)
Annual
Years Ended Pension Percentage Net Pension
June 30, Cost (APC) Contributed Obligation
2004 $ 3,287 100% $ -
2005 3,334 100 -
2006 4,659 100 -
Employees’ Money Purchase Pension Plan
The City of Lansing sponsors and contributes to the Employees’ Money Purchase Pension Plan,
which is a single-employer defined - contribution pension plan. Administration of the plan is
funded by the General Fund.
A defined contribution pension plan provides pension benefits in return for services rendered,
provides an individual account for each participant, and specifies how contributions to the
individual's account are to be determined instead of specifying the amount of benefits the individual
is to receive. Under a defined contribution pension plan, the benefits a participant will receive
depend solely on the amount contributed to the participant's account and the returns earned on
investments of those contributions. As established by Chapter 292.30 of the City of Lansing's Code
of Ordinances, this plan includes all elected officials hired subsequent to September 30, 1990. As
of June 30, 2006, there were 10 active members in this plan. Contributions made by employees vest
immediately, and contributions made by the City vest after three years of full-time employment.
When employees terminate employment, they are entitled to their contributions and the City’s
contributions if vesting requirements are satisfied. Employees may contribute up to 8% of their
wages in 1% increments. The City contributes an amount equal to 6.0% of the employees’ wages
for retirement benefits.
During the year, the City’s required and actual contributions amounted to $18,280, which was
approximately 6% of covered payroll for members of this plan. The total payroll for the City for
fiscal year ended June 30, 2006, was $60,332,946. There were no employee contributions. The
payroll for employees in the money purchase pension plan for fiscal year ended June 30, 2006 was
$304,653.
No pension provision changes occurred during the year that affected the required contributions to be
made by the City. In addition, the plan does not issue stand-alone financial statements.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-61-
Voluntary Employees Beneficiary Association (VEBA). The City of Lansing Voluntary Employees
Beneficiary Association (VEBA; the “Plan”) is a single-employer defined benefit post employment
healthcare plan established by the City to provide medical and healthcare benefits for retirees and
their beneficiaries. Eligible participants include any retirees who receive pension benefits under one
of the City’s pension plans. Plan provisions are established and may be amended by the City
Council, subject to the City’s various collective bargaining agreements. 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.
Subject to certain age and length of service requirements, eligible participants receive the same or
comparable medical insurance coverage under the Plan as was in effect at the time of their
employment. At such time that participants become Medicare eligible, the benefits under the Plan
change to Medicare Supplemental coverage.
Employer contributions to fund the Plan are currently on a pay-as-you-go basis with additional
contributions intended to build the fund for purposes of paying future benefits. Employer
contributions for the year ended June 30, 2006 were $1,000,000. Employees are not required to
contribute to the Plan, and no employee contributions were directed to the VEBA in 2006.
During 2006, no members received healthcare benefits under the Plan.
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-62-
Financial statements for individual pension plans
Pension Net Assets
Police Employees'
Employees' and Fire Money Retiree
Retirement Retirement Purchase Health Care
System System Pension Plan VEBA Totals
Assets
Cash and cash equivalents 5,840,279$ 5,108,634$ -$ -$ 10,948,913$
Investments:
U. S. Government obligations 37,355,604 47,765,174 - - 85,120,778
Corporate bonds - 1,258,867 - - 1,258,867
Common stocks 16,619,081 28,246,278 - - 44,865,359
Mutual funds 139,284,284 191,598,645 2,784,932 3,621,175 337,289,036
Contribution receivable - 3,168,310 4,250 - 3,172,560
Dividends and interest receivable 288,532 356,669 2,258 10,621 658,080
Total assets 199,387,780 277,502,577 2,791,440 3,631,796 483,313,593
Liabilities
Accounts payable 418,153 143,394 - - 561,547
Net assets held in trust for
pension benefits 198,969,627$ 277,359,183$ 2,791,440$ 3,631,796$ 482,752,046$
Changes in Pension Net Assets
Additions
Investment income:
Net appreciation in fair value
of investments 8,328,057$ 10,346,876$ -$ (59,935)$ 18,614,998$
Interest income 6,645,091 8,135,185 223,472 3,551 15,007,299
Dividend income 131,682 2,699,449 - 214,084 3,045,215
Less investment expenses (505,462) (700,036) (3,052) - (1,208,550)
Net investment income 14,599,368 20,481,474 220,420 157,700 35,458,962
Contributions:
Employer 5,501,502 5,008,703 18,280 1,000,000 11,528,485
Plan members 1,864,428 2,682,010 - - 4,546,438
Total contributions 7,365,930 7,690,713 18,280 1,000,000 16,074,923
Total additions 21,965,298 28,172,187 238,700 1,157,700 51,533,885
Deductions
Participant benefits 16,100,969 19,142,941 270,339 - 35,514,249
Administrative expense 97,745 96,699 - - 194,444
Total deductions 16,198,714 19,239,640 270,339 - 35,708,693
Net additions (deductions) to
net assets held in trust 5,766,584 8,932,547 (31,639) 1,157,700 15,825,192
Net assets held in trust for pension benefits:
Beginning of year 193,203,043 268,426,636 2,823,079 2,474,096 466,926,854
End of year 198,969,627$ 277,359,183$ 2,791,440$ 3,631,796$ 482,752,046$
CITY OF LANSING, MICHIGAN
Notes To Financial Statements
-63-
4-E. Postemployment Benefits
Employees’ Retirement System – Postretirement Health Care Benefits
In addition to the pension benefits described above, the City provides postretirement 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). Depending on date hired, members are eligible to receive
health care benefits with a minimum of 8 to 15 years of service and an age requirement ranging
from none to age 58. Currently, 772 retirees meet these eligibility requirements. 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 $88.50 per month for each covered retiree and
dependent(s). The payments are charged to the General Fund of the City and are recognized as
expenditures as payments are made. During the year, payments for health care benefits were
approximately $5,465,811.
There were no significant changes in health benefits over the previous year.
Police and Fire Retirement System – Postretirement Health Care Benefits
The City also provides postretirement health care benefits, in accordance with labor agreements, to
full-time police officers and firefighters with a minimum of 15 years of service and an age
requirement of 55 years. If service is 25 years or more, there is no age requirement. Currently, 617
retirees meet these eligibility requirements. 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 $88.50 per month for each covered retiree and dependent(s). The payments are charged to the
General Fund of the City and are recognized as expenditures as payments are made. During the
year, payments for health care benefits were approximately $5,757,708.
There were no significant changes in health benefits over the previous year.
4-F. Restatements
Beginning net assets of governmental activities were increased by $692,045 to reflect the
capitalization of certain assets constructed in the prior year.
* * * * * *
REQUIRED SUPPLEMENTARY INFORMATION
City of Lansing
Employees' Retirement System
Required Supplementary Information
(amounts in thousands)
Schedule of Funding Progress
Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Underfunded Funded Covered % of Covered
Valuation Assets Liability AAL (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
12/31/1996 114,420$ 157,082$ 42,662$ 72.8% 18,169$ 234.8%
12/31/1997 127,444 161,792 34,348 78.8% 18,332 187.4%
12/31/1998 143,268 170,775 27,507 83.9% 17,820 154.4%
12/31/1999 161,958 187,150 25,192 86.5% 19,312 130.4%
12/31/2000 177,855 198,396 20,541 89.6% 19,521 105.2%
12/31/2001 191,311 213,648 22,337 89.5% 20,282 110.1%
12/31/2002 192,920 215,405 22,485 89.6% 19,098 117.7%
12/31/2003 199,329 221,088 21,759 90.2% 30,579 71.2%
12/31/2004 206,200 231,389 25,189 89.1% 32,383 77.8%
12/31/2005 207,881 245,242 37,361 84.8% 30,851 121.1%
Schedule of Employer Contributions
Year Ended Annual Required Percentage
June 30 Contributions Contributed
1997 4,329$ 98.9%
1998 4,086 99.2%
1999 3,334 100.0%
2000 3,138 100.0%
2001 3,215 100.0%
2002 3,105 100.0%
2003 3,567 98.1%
2004 3,466 100.0%
2005 4,675 100.0%
2006 4,900 100.0%
-64-
City of Lansing
Police and Fire Retirement System
Required Supplementary Information
(amounts in thousands)
Schedule of Funding Progress
Actuarial Actuarial Underfunded UAAL as a
Actuarial Value of Accrued (Overfunded) Funded Covered % of Covered
Valuation Assets Liability AAL (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
12/31/1995 157,485$ 182,127$ 24,642$ 86.5% 20,899$ 117.9%
12/31/1996 172,830 191,074 18,244 90.5% 20,392 89.5%
12/31/1997 193,162 206,191 13,029 93.7% 22,419 58.1%
12/31/1998 217,011 218,533 1,522 99.3% 22,792 6.7%
12/31/1999 245,197 233,332 (11,865) 105.1% 24,352 -48.7%
12/31/2000 267,020 239,615 (27,405) 111.4% 24,830 -110.4%
12/31/2001 280,518 249,204 (31,314) 112.6% 25,751 -121.6%
12/31/2002 280,686 259,282 (21,404) 108.3% 26,152 -81.8%
12/31/2003 277,947 267,786 (10,161) 103.8% 26,484 -38.4%
12/31/2004 275,807 279,873 4,066 98.5% 27,754 14.7%
12/31/2005 273,421 290,299 16,878 94.2% 27,855 60.6%
Schedule of Employer Contributions
Year Ended Annual Required Percentage
June 30 Contributions Contributed
1997 4,669$ 98.7%
1998 4,252 99.0%
1999 4,380 99.4%
2000 4,063 100.0%
2001 3,561 100.0%
2002 2,665 100.0%
2003 2,637 100.0%
2004 3,287 99.6%
2005 3,334 100.3%
2006 4,659 100.0%
-65-
COMBINING and INDIVIDUAL FUND
STATEMENTS and SCHEDULES
City of Lansing
Combining Balance Sheet - Nonmajor Governmental FundsJune 30, 2006
Special Debt Capital
Revenue Service Projects Permanent Totals
Assets
Assets
Cash and cash equivalents 57,686$ 25,705$ 2,335,769$ -$ 2,419,160$
Equity in pooled cash 12,618,576 67,774 14,311,216 1,577,150 28,574,716
Accounts receivable, net 2,612,626 - - - 2,612,626
Accrued interest receivable 1,593,867 - 1,043 - 1,594,910
Special assessments receivable - 2,421 1,159,999 - 1,162,420
Loans receivable 1,410,149 - - - 1,410,149
Due from other funds 46,052 - - - 46,052
Interfund receivable 5,728,059 - - - 5,728,059
Advances to other funds - - 192,439 - 192,439
Due from other governments 5,174,829 - 1,070 - 5,175,899
Prepaids 146,764 - - - 146,764
Total assets 29,388,608$ 95,900$ 18,001,536$ 1,577,150$ 49,063,194$
Liabilities and Fund Balances
Liabilities
Accounts payable 839,261$ -$ 545,581$ -$ 1,384,842$
Deposits payable 336,768 - - - 336,768
Accrued payroll 231,140 - 686 - 231,826
Indemnity bonds 14,774 - - - 14,774
Due to other funds - - 290,389 - 290,389
Interfund payable 5,691,371 4,653 - - 5,696,024
Advances from other funds - - 601,263 - 601,263
Deferred revenue 2,863,470 2,421 846,246 - 3,712,137
Total liabilities 9,976,784 7,074 2,284,165 - 12,268,023
Fund balances
Reserved for advances - - 192,439 - 192,439
Reserved for prepaids 146,764 - - - 146,764
Reserved for encumbrances 466,769 - - - 466,769
Unreserved:
Designated for subsequent
years' expenditures 9,882,456 - - - 9,882,456
Undesignated 8,915,835 88,826 15,524,932 1,577,150 26,106,743
Total fund balances 19,411,824 88,826 15,717,371 1,577,150 36,795,171
Total liabilities and fund balances 29,388,608$ 95,900$ 18,001,536$ 1,577,150$ 49,063,194$
-66-
City of Lansing
Combining Statement of Revenues, Expenditures andChanges in Fund Balances - Nonmajor Governmental FundsFor the Year Ended June 30, 2006
Special Debt Capital
Revenue Service Projects Permanent Totals
Revenues
Taxes and special assessments 421,325$ 2,155,076$ 451,756$ -$ 3,028,157$
Intergovernmental 17,376,599 - - - 17,376,599
Charges for services 9,142,387 - 83,493 12,335 9,238,215
Fines and forfeits 587,613 - - - 587,613
Interest 457,462 76,628 343,821 51,603 929,514
Contributions 38,391 - - - 38,391
Donations from private sources - - 549,055 - 549,055
Other 960,778 - - - 960,778
Total revenues 28,984,555 2,231,704 1,428,125 63,938 32,708,322
Expenditures
Current expenditures:
General government 2,493,387 - - - 2,493,387
Public safety 5,447,949 - - - 5,447,949
Highways and streets 7,970,052 - - - 7,970,052
Recreation and culture 68,554 - - - 68,554
Other functions 5,620,047 - - - 5,620,047
Debt service:
Principal 1,043,351 1,665,000 - - 2,708,351
Interest 344,644 660,084 - - 1,004,728
Issuance costs - 18,407 - - 18,407
Capital outlay 5,552,377 - 7,754,433 - 13,306,810
Total expenditures 28,540,361 2,343,491 7,754,433 - 38,638,285
Revenues over (under)
expenditures 444,194 (111,787) (6,326,308) 63,938 (5,929,963)
Other financing sources (uses)
Transfers in 1,871,921 177,806 4,020,500 19,260 6,089,487
Transfers out (2,678,899) - (802,119) (63,938) (3,544,956)
Proceeds on sale of capital assets - - 192,439 - 192,439
Issuance of long-term debt - 1,470,000 6,111,500 - 7,581,500
Bond premium - 52,982 - - 52,982
Bond discount - - (42,400) - (42,400)
Payment to escrow agent - (1,504,575) - - (1,504,575)
Total other financing sources (uses) (806,978) 196,213 9,479,920 (44,678) 8,824,477
Net change in fund balances (362,784) 84,426 3,153,612 19,260 2,894,514
Fund balances, beginning of year 19,774,608 4,400 12,563,759 1,557,890 33,900,657
Fund balances, end of year 19,411,824$ 88,826$ 15,717,371$ 1,577,150$ 36,795,171$
-67-
Non-Major Special Revenue Funds
Major Streets Fund – This fund accounts for revenues received from the State of Michigan for the City's share
of state gasoline and weight taxes, which is used for maintenance of major streets.
Local Streets Fund – This fund accounts for revenues received from the State of Michigan for the City's share of
state gasoline and weight taxes, which is used for maintenance of local streets.
Budget Stabilization Fund – This fund is used to account for funds set aside under the provisions of Public Act
30 of 1978. Funds set aside are to be determined by the City Council on an annual basis in any year where actual
General Fund revenues exceed actual expenditures.
Drug Law Enforcement Fund – This fund accounts for revenues set aside for drug law enforcement under the
provisions of State of Michigan Public Act 135 of 1985, as amended.
State and Federal Programs Fund – This fund accounts for all revenues received from miscellaneous grants and
local contributions. These revenues are used for projects as detailed in individual grant applications.
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.
Stadium Fund – This fund accounts for the City's share of revenues received from events held at Oldsmobile
Park, the City's baseball stadium. The revenues are used for stadium expenditures.
Principal Shopping District Fund – This fund accounts for assessments received from businesses located in the
district. The revenues are used for special events and maintenance of the district.
911 Communications Center Fund – This fund accounts for the operations of the county-wide 911
communications center. Revenues received are from the County for actual expenditures incurred.
Building Department Fund – This fund accounts for revenues and expenditures resulting from the enforcement
of the State Construction Code Act of 1999 (PA 245 of 1999).
Parks Department Fund – This fund accounts for contributions and transfers which are restricted for park
expenditures.
City of Lansing
Combining Balance Sheet - Nonmajor Special Revenue Funds
June 30, 2006
State and
Major Local Budget Drug Law Federal
Streets Streets Stabilization Enforcement Programs
Assets
Assets
Cash and cash equivalents -$ -$ -$ 51,956$ -$
Equity in pooled cash 7,842,568 2,203,424 - 1,379,685 -
Accounts receivable - - - 5,334 5,131
Accrued interest receivable - - - - -
Loans receivable - - - - -
Due from other funds 31,196 14,856 - - -
Interfund receivable - - 5,728,059 - -
Due from other governments 1,162,422 314,515 - - 2,205,255
Prepaids 146,514 - - - -
Total assets 9,182,700$ 2,532,795$ 5,728,059$ 1,436,975$ 2,210,386$
Liabilities and Fund Balances
Liabilities
Accounts payable 322,697$ 53,913$ -$ 83,035$ 273,308$
Deposits payable - - - 329,718 -
Accrued payroll 45,287 52,323 - 1,789 14,361
Indemnity bonds 11,411 3,363 - - -
Interfund payable - - - - 1,863,263
Deferred revenue - - - - 59,454
Total liabilities 379,395 109,599 - 414,542 2,210,386
Fund balances
Reserved for prepaids 146,514 - - - -
Reserved for encumbrances 386,605 19,939 - 51,575 -
Unreserved:
Designated for subsequent
years' expenditures 7,395,832 1,836,575 - - -
Undesignated 874,354 566,682 5,728,059 970,858 -
Total fund balances 8,803,305 2,423,196 5,728,059 1,022,433 -
Total liabilities and fund balances 9,182,700$ 2,532,795$ 5,728,059$ 1,436,975$ 2,210,386$
-68-
Community
Development Principal 911
Block Grant Shopping Communications Building Parks
Program Stadium District Center Department Department Totals
-$ -$ -$ -$ 5,730$ -$ 57,686$
- - 81,076 - 588,852 522,971 12,618,576
- 166,275 3,333 2,427,793 4,760 - 2,612,626
1,593,867 - - - - - 1,593,867
1,410,149 - - - - - 1,410,149
- - - - - - 46,052
- - - - - - 5,728,059
1,492,637 - - - - - 5,174,829
- - 250 - - - 146,764
4,496,653$ 166,275$ 84,659$ 2,427,793$ 599,342$ 522,971$ 29,388,608$
58,741$ 3,125$ 31,655$ 4,827$ 7,960$ -$ 839,261$
- - - - 7,050 - 336,768
26,553 - 4,470 54,347 32,010 - 231,140
- - - - - - 14,774
1,607,343 7,498 - 2,213,267 - - 5,691,371
2,804,016 - - - - - 2,863,470
4,496,653 10,623 36,125 2,272,441 47,020 - 9,976,784
- - 250 - - - 146,764
- - - 8,650 - - 466,769
- 86,184 - 146,702 417,163 - 9,882,456
- 69,468 48,284 - 135,159 522,971 8,915,835
- 155,652 48,534 155,352 552,322 522,971 19,411,824
4,496,653$ 166,275$ 84,659$ 2,427,793$ 599,342$ 522,971$ 29,388,608$
-69-
City of Lansing
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Special Revenue Funds
For the Year Ended June 30, 2006
State and
Major Local Budget Drug Law Federal
Streets Streets Stabilization Enforcement Programs
Revenues
Taxes and special assessments -$ -$ -$ -$ -$
Intergovernmental 7,022,630 1,904,765 - 431,655 5,270,109
Charges for services 783,785 1,062,324 - - -
Fines and forfeits - - - 587,613 -
Interest 251,795 112,885 - 48,851 -
Contributions - - - 5,500 -
Other 444,829 - - - -
Total revenues 8,503,039 3,079,974 - 1,073,619 5,270,109
Expenditures
Current expenditures:
General government - - - - -
Public safety - - - 961,991 -
Highways and streets 4,617,708 3,352,344 - - -
Recreation and culture - - - - -
Other functions - - - - 5,620,047
Debt service:
Principal 133,351 - - - -
Interest 55,719 - - - -
Capital outlay 1,551,852 754,290 - - -
Total expenditures 6,358,630 4,106,634 - 961,991 5,620,047
Revenues over (under)
expenditures 2,144,409 (1,026,660) - 111,628 (349,938)
Other financing sources (uses)
Transfers in 132,766 1,228,297 - - 212,373
Transfers out (1,194,378) - (1,467,021) (17,500) -
Total other financing
sources (uses) (1,061,612) 1,228,297 (1,467,021) (17,500) 212,373
Net change in fund balances 1,082,797 201,637 (1,467,021) 94,128 (137,565)
Fund balances, beginning of year 7,720,508 2,221,559 7,195,080 928,305 137,565
Fund balances, end of year 8,803,305$ 2,423,196$ 5,728,059$ 1,022,433$ -$
-70-
Community
Development Principal 911
Block Grant Shopping Communications Building Parks
Program Stadium District Center Department Department Totals
-$ -$ 421,325$ -$ -$ -$ 421,325$
2,747,440 - - - - - 17,376,599
- 691,294 1,000 4,455,712 2,148,272 - 9,142,387
- - - - - - 587,613
5,196 14,850 3,964 - - 19,921 457,462
- - 10,000 22,891 - - 38,391
493,599 - 7,208 15,142 - - 960,778
3,246,235 706,144 443,497 4,493,745 2,148,272 19,921 28,984,555
- 226,500 464,262 - 1,802,625 - 2,493,387
- - - 4,485,958 - - 5,447,949
- - - - - - 7,970,052
- 57,745 - - - 10,809 68,554
- - - - - - 5,620,047
- 910,000 - - - - 1,043,351
- 288,925 - - - - 344,644
3,246,235 - - - - - 5,552,377
3,246,235 1,483,170 464,262 4,485,958 1,802,625 10,809 28,540,361
- (777,026) (20,765) 7,787 345,647 9,112 444,194
- 199,100 45,000 42,000 - 12,385 1,871,921
- - - - - - (2,678,899)
- 199,100 45,000 42,000 - 12,385 (806,978)
- (577,926) 24,235 49,787 345,647 21,497 (362,784)
- 733,578 24,299 105,565 206,675 501,474 19,774,608
-$ 155,652$ 48,534$ 155,352$ 552,322$ 522,971$ 19,411,824$
-71-
City of Lansing
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended June 30, 2006
Major Streets
Variance with
Budget Actual Budget
Revenues
Taxes and special assessments -$ -$ -$
Intergovernmental 7,728,900 7,022,630 706,270
Charges for services 371,000 783,785 (412,785)
Fines and forfeits - - -
Interest 30,000 251,795 (221,795)
Contributions - - -
Other 633,000 444,829 188,171
Total revenues 8,762,900 8,503,039 259,861
Expenditures
Current expenditures:
General government - - -
Public safety - - -
Highways and streets 6,469,148 4,617,708 1,851,440
Recreation and culture - - -
Other functions - - -
Debt service:
Principal - 133,351 (133,351)
Interest 189,732 55,719 134,013
Capital outlay 8,630,744 1,551,852 7,078,892
Total expenditures 15,289,624 6,358,630 8,930,994
Revenues over (under)
expenditures (6,526,724) 2,144,409 (8,671,133)
Other financing sources (uses)
Transfers in 550,697 132,766 417,931
Transfers out (1,194,378) (1,194,378) -
Total other financing
sources (uses) (643,681) (1,061,612) 417,931
Net change in fund balances (7,170,406) 1,082,797 (8,253,203)
Fund balances, beginning of year 7,720,508 7,720,508 -
Fund balances, end of year 550,102$ 8,803,305$ (8,253,203)$
-72-
Local Streets Budget Stabilization
Variance with Variance with
Budget Actual Budget Budget Actual Budget
-$ -$ -$ -$ -$ -$
2,086,900 1,904,765 182,135 - - -
337,600 1,062,324 (724,724) - - -
- - - - - -
6,000 112,885 (106,885) - - -
- - - - - -
- - - - - -
2,430,500 3,079,974 (649,474) - - -
- - - - - -
- - - - - -
3,537,400 3,352,344 185,056 - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
2,070,533 754,290 1,316,243 - - -
5,607,933 4,106,634 1,501,299 - - -
(3,177,433) (1,026,660) (2,150,773) - - -
1,438,709 1,228,297 210,412 - - -
- - - (1,600,000) (1,467,021) (132,979)
1,438,709 1,228,297 210,412 (1,600,000) (1,467,021) (132,979)
(1,738,724) 201,637 (1,940,361) (1,600,000) (1,467,021) (132,979)
2,221,559 2,221,559 - 7,195,080 7,195,080 -
482,835$ 2,423,196$ (1,940,361)$ 5,595,080$ 5,728,059$ (132,979)$
-73-
City of Lansing
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Nonmajor Special Revenue Funds (Continued)
For the Year Ended June 30, 2006
Drug Law Enforcement
Variance with
Budget Actual Budget
Revenues
Taxes and special assessments -$ -$ -$
Intergovernmental 415,364 431,655 (16,291)
Charges for services - - -
Fines and forfeits 440,000 587,613 (147,613)
Interest 15,000 48,851 (33,851)
Contributions - 5,500 (5,500)
Other - - -
Total revenues 870,364 1,073,619 (203,255)
Expenditures
Current expenditures:
General government - - -
Public safety 622,320 961,991 (339,671)
Highways and streets - - -
Recreation and culture - - -
Other functions - - -
Debt service:
Principal - - -
Interest - - -
Capital outlay - - -
Total expenditures 622,320 961,991 (339,671)
Revenues over (under)
expenditures 248,044 111,628 136,416
Other financing sources (uses)
Transfers in - - -
Transfers out (21,500) (17,500) (4,000)
Total other financing
sources (uses) (21,500) (17,500) (4,000)
Net change in fund balances 226,544 94,128 132,416
Fund balances, beginning of year 928,305 928,305 -
Fund balances, end of year 1,154,849$ 1,022,433$ 132,416$
-74-
Community Development
State and Federal Programs Block Grant Program
Variance with Variance with
Budget Actual Budget Budget Actual Budget
-$ -$ -$ -$ -$ -$
16,733,999 5,270,109 11,463,890 3,304,767 2,747,440 557,327
3,000 - 3,000 - - -
- - - - - -
(1,531) - (1,531) - 5,196 (5,196)
- - - - - -
- - - 1,050,000 493,599 556,401
16,735,468 5,270,109 11,465,359 4,354,767 3,246,235 1,108,532
- - - - - -
- - - - - -
- - - - - -
- - - - - -
22,395,433 5,620,047 16,775,386 - - -
- - - - - -
- - - - - -
- - - 4,354,767 3,246,235 1,108,532
22,395,433 5,620,047 16,775,386 4,354,767 3,246,235 1,108,532
(5,659,965) (349,938) (5,310,027) - - -
477,494 212,373 265,121 - - -
- - - - - -
477,494 212,373 265,121 - - -
(5,182,471) (137,565) (5,044,906) - - -
137,565 137,565 - - - -
(5,044,906)$ -$ (5,044,906)$ -$ -$ -$
-75-
City of Lansing
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Nonmajor Special Revenue Funds (Continued)
For the Year Ended June 30, 2006
Stadium
Variance with
Budget Actual Budget
Revenues
Taxes and special assessments -$ -$ -$
Intergovernmental - - -
Charges for services 662,000 691,294 (29,294)
Fines and forfeits - - -
Interest 12,000 14,850 (2,850)
Contributions - - -
Other - - -
Total revenues 674,000 706,144 (32,144)
Expenditures
Current expenditures:
General government 226,500 226,500 -
Public safety - - -
Highways and streets - - -
Recreation and culture 57,744 57,745 (1)
Other functions - - -
Debt service:
Principal 910,000 910,000 -
Interest 288,925 288,925 -
Capital outlay - - -
Total expenditures 1,483,169 1,483,170 (1)
Revenues over (under)
expenditures (809,169) (777,026) (32,143)
Other financing sources (uses)
Transfers in 250,000 199,100 50,900
Transfers out - - -
Total other financing
sources (uses) 250,000 199,100 50,900
Net change in fund balances (559,169) (577,926) 18,757
Fund balances, beginning of year 733,578 733,578 -
Fund balances, end of year 174,409$ 155,652$ 18,757$
-76-
Principal Shopping District 911 Communications Center
Variance with Variance with
Budget Actual Budget Budget Actual Budget
422,398$ 421,325$ 1,073$ -$ -$ -$
- - - - - -
1,000 1,000 - 4,437,579 4,455,712 (18,133)
- - - - - -
500 3,964 (3,464) - - -
10,000 10,000 - 40,000 22,891 17,109
4,000 7,208 (3,208) 10,864 15,142 (4,278)
437,898 443,497 (5,599) 4,488,443 4,493,745 (5,302)
494,189 464,262 29,927 - - -
- - - 4,738,654 4,485,958 252,696
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
494,189 464,262 29,927 4,738,654 4,485,958 252,696
(56,291) (20,765) (35,526) (250,211) 7,787 (257,998)
42,075 45,000 (2,925) 92,000 42,000 50,000
- - - - - -
42,075 45,000 (2,925) 92,000 42,000 50,000
(14,216) 24,235 (38,451) (158,211) 49,787 (207,998)
24,299 24,299 - 105,565 105,565 -
10,083$ 48,534$ (38,451)$ (52,646)$ 155,352$ (207,998)$
-77-
City of Lansing
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Nonmajor Special Revenue Funds (Concluded)
For the Year Ended June 30, 2006
Building Department
Variance with
Budget Actual Budget
Revenues
Taxes and special assessments -$ -$ -$
Intergovernmental - - -
Charges for services 1,909,112 2,148,272 (239,160)
Fines and forfeits - - -
Interest - - -
Contributions - - -
Other - - -
Total revenues 1,909,112 2,148,272 (239,160)
Expenditures
Current expenditures:
General government 1,909,825 1,802,625 107,200
Public safety - - -
Highways and streets - - -
Recreation and culture - - -
Other functions - - -
Debt service:
Principal - - -
Interest - - -
Capital outlay - - -
Total expenditures 1,909,825 1,802,625 107,200
Revenues over (under)
expenditures (713) 345,647 (346,360)
Other financing sources (uses)
Transfers in - - -
Transfers out - - -
Total other financing
sources (uses) - - -
Net change in fund balances (713) 345,647 (346,360)
Fund balances, beginning of year 206,675 206,675 -
Fund balances, end of year 205,963$ 552,322$ (346,360)$
-78-
Parks Department Totals
Variance with Variance with
Budget Actual Budget Budget Actual Budget
-$ -$ -$ 422,398$ 421,325$ 1,073$
- - - 30,269,930 17,376,599 12,893,331
- - - 7,721,291 9,142,387 (1,421,096)
- - - 440,000 587,613 (147,613)
- 19,921 (19,921) 61,969 457,462 (395,493)
- - - 50,000 38,391 11,609
- - - 1,697,864 960,778 737,086
- 19,921 (19,921) 40,663,452 28,984,555 (11,678,897)
- - - 2,630,514 2,493,387 137,127
- - - 5,360,974 5,447,949 (86,975)
- - - 10,006,548 7,970,052 2,036,496
99,499 10,809 88,690 157,243 68,554 88,689
- - - 22,395,433 5,620,047 16,775,386
- - - 910,000 1,043,351 (133,351)
- - - 478,657 344,644 134,013
- - - 15,056,044 5,552,377 9,503,667
99,499 10,809 88,690 56,995,413 28,540,361 28,455,052
(99,499) 9,112 (108,611) (16,331,961) 444,194 16,776,155
- 12,385 (12,385) 2,850,975 1,871,921 979,054
- - - (2,815,878) (2,678,899) (136,979)
- 12,385 (12,385) 35,097 (806,978) 842,075
(99,499) 21,497 (120,996) (16,296,864) (362,784) 15,934,080
501,474 501,474 - 19,774,608 19,774,608 -
401,975$ 522,971$ (120,996)$ 3,477,744$ 19,411,824$ 15,934,080$
-79-
Non-Major Debt Service Funds
1990 Special Assessments Fund – This fund accounts for the accumulation of resources for payment of the 1990
$800,000 Special Assessment Bonds.
1996 Refunding Bonds Fund – This fund accounts for the accumulation of resources for payment of the 1996
$10,800,000 Refunding Bonds.
1998 Building Authority Fund – This fund accounts for the accumulation of resources for payment of the 1998
$2,175,000 Building Authority Bonds.
1999 Fire Station Fund – This fund accounts for the accumulation of resources for payment of the 1999
$3,000,000 Unlimited Tax General Obligation Bonds.
2001 Fire Station Fund – This fund accounts for the accumulation of resources for the payment of the 2001
$4,000,000 Unlimited Tax General Obligation Bonds.
City of Lansing
Combining Balance Sheet - Nonmajor Debt Service Funds
June 30, 2006
1990 1996 1998 1999
Special Refunding Building Fire
Assessments Bonds Authority Station
Assets
Assets
Cash and cash equivalents 5,298$ 3,856$ -$ 10,817$
Equity in pooled cash - 60,357 - 407
Special assessments receivable 2,421 - - -
Total assets 7,719$ 64,213$ -$ 11,224$
Liabilities and Fund Balances
Liabilities
Interfund payables 4,653$ -$ -$ -$
Deferred revenues 2,421 - - -
Total liabilities 7,074 - - -
Fund balances
Unreserved, undesignated 645 64,213 - 11,224
Total liabilities
and fund balances 7,719$ 64,213$ -$ 11,224$
-80-
2001
Fire
Station Totals
5,734$ 25,705$
7,010 67,774
- 2,421
12,744$ 95,900$
-$ 4,653$
- 2,421
- 7,074
12,744 88,826
12,744$ 95,900$
-81-
City of Lansing
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Debt Service Funds
For the Year Ended June 30, 2006
1990 1996 1998 1999
Special Refunding Building Fire
Assessments Bonds Authority Station
Revenues
Taxes and special assessments 1,845$ 1,555,731$ -$ 286,000$
Interest 319 53,926 - 10,774
Total revenues 2,164 1,609,657 - 296,774
Expenditures
Debt service:
Principal payments 10,000 1,265,000 95,000 150,000
Interest 2,250 282,444 72,475 136,550
Issuance costs - - 18,407 -
Total expenditures 12,250 1,547,444 185,882 286,550
Revenues over (under)
expenditures (10,086) 62,213 (185,882) 10,224
Other financing sources (uses)
Transfers in 10,731 - 167,075 -
Issuance of long-term debt - - 1,470,000 -
Bond premium - - 52,982 -
Payment to escrow agent - - (1,504,575) -
Total other financing sources (uses) 10,731 - 185,482 -
Net change in fund balances 645 62,213 (400) 10,224
Fund balances, beginning of year - 2,000 400 1,000
Fund balances, end of year 645$ 64,213$ -$ 11,224$
-82-
2001
Fire
Station Totals
311,500$ 2,155,076$
11,609 76,628
323,109 2,231,704
145,000 1,665,000
166,365 660,084
- 18,407
311,365 2,343,491
11,744 (111,787)
- 177,806
- 1,470,000
- 52,982
- (1,504,575)
- 196,213
11,744 84,426
1,000 4,400
12,744$ 88,826$
-83-
Non-Major Capital Projects Funds
1987 Street Improvements Fund – This fund accounts for the proceeds of the 1987 $22,000,000 Unlimited Tax
bonds.
1990 Environmental I Fund – This fund accounts for the proceeds of the 1990 $7,000,000 Environmental bonds.
1990 Environmental II Fund – This fund accounts for the proceeds of the 1990 $6,300,000 Environmental
bonds.
Combined Sewer Overflow Fund – This fund accounts for the storm sewer portion of the combined sewer
overflow bonds.
Special Assessments Fund – This fund is used to account for the financing of public improvements deemed to
benefit the properties against which special assessments are levied.
1999 Fire Station Fund – This fund accounts for the proceeds of the 1999 $3,000,000 Unlimited Tax General
Obligation Bonds.
2001 Fire Station Fund – This fund accounts for the proceeds of the 2001 $4,000,000 Unlimited Tax General
Obligation Bonds.
Lansing Center Improvements Fund – This fund accounts for the proceeds of the 2006 $4,000,000 Lansing
Center Limited Tax Bonds.
2006 MTF Bonds Fund – This fund accounts for the proceeds of the 2006 $1,600,000 Michigan Transportation
Fund Limited Tax Bonds.
Other Capital Projects Fund – This fund accounts for miscellaneous capital projects.
City of Lansing
Combining Balance Sheet - Nonmajor Capital Projects FundsJune 30, 2006
1987
Street 1990 1990 Combined
Improve- Environ- Environ- Sewer
ments mental I mental II Overflow
Assets
Assets
Cash and cash equivalents -$ -$ -$ -$
Equity in pooled cash 101,946 78,218 355,748 1,404,581
Accrued interest receivable - - - -
Special assessments receivable:
Current - - - -
Deferred - - - -
Advances to other funds - - - -
Due from other governments - - - -
Total assets 101,946$ 78,218$ 355,748$ 1,404,581$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$
Accrued payroll - - - -
Due to other funds - - - -
Advances from other funds - - - -
Deferred revenue - - - -
Total liabilities - - - -
Fund balances
Reserved for advances - - - -
Unreserved, undesignated (deficit) 101,946 78,218 355,748 1,404,581
Total fund balances (deficit) 101,946 78,218 355,748 1,404,581
Total liabilities and fund balances 101,946$ 78,218$ 355,748$ 1,404,581$
-84-
Special 1999 2001 Lansing 2006
Assess- Fire Fire Center MTF
ments Station Station Improvements Bonds Other Totals
-$ -$ 273,612$ -$ 1,456,111$ 606,046$ 2,335,769$
- 10,964 - 3,288,066 - 9,071,693 14,311,216
- - 1,043 - - - 1,043
313,753 - - - - - 313,753
846,246 - - - - - 846,246
- - - - - 192,439 192,439
1,070 - - - - - 1,070
1,161,069$ 10,964$ 274,655$ 3,288,066$ 1,456,111$ 9,870,178$ 18,001,536$
47,473$ 10,964$ 30,865$ 65,880$ -$ 390,399$ 545,581$
- - - - - 686 686
- - 241,487 - 48,902 - 290,389
601,263 - - - - - 601,263
846,246 - - - - - 846,246
1,494,982 10,964 272,352 65,880 48,902 391,085 2,284,165
- - - - - 192,439 192,439
(333,913) - 2,303 3,222,186 1,407,209 9,286,654 15,524,932
(333,913) - 2,303 3,222,186 1,407,209 9,479,093 15,717,371
1,161,069$ 10,964$ 274,655$ 3,288,066$ 1,456,111$ 9,870,178$ 18,001,536$
-85-
City of Lansing
Combining Statement of Revenues, Expenditures andChanges in Fund Balances - Nonmajor Capital Projects Funds
For the Year Ended June 30, 2006
1987
Street 1990 1990 Combined
Improve- Environ- Environ- Sewer
ments mental I mental II Overflow
Revenues
Special assessments -$ -$ -$ -$
Charges for services - - - -
Interest 3,888 2,982 13,803 -
Donations from private sources - - - -
Total revenues 3,888 2,982 13,803 -
Expenditures
Capital outlay - - 9,287 3,561
Revenues over (under) expenditures 3,888 2,982 4,516 (3,561)
Other financing sources (uses)
Transfers in - - - -
Transfers out - - - -
Proceeds on sale of capital assets - - - -
Issuance of long-term debt - - - -
Bond discount - - - -
Total other financing sources - - - -
Net change in fund balances 3,888 2,982 4,516 (3,561)
Fund balance (deficit), beginning of year 98,058 75,236 351,232 1,408,142
Fund balance (deficit), end of year 101,946$ 78,218$ 355,748$ 1,404,581$
-86-
Special 1999 2001 Lansing 2006
Assess- Fire Fire Center MTF
ments Station Station Improvements Bonds Other Totals
451,756$ -$ -$ -$ -$ -$ 451,756$
- - - - - 83,493 83,493
- 8,785 81,380 21,324 9,354 202,305 343,821
- - - - - 549,055 549,055
451,756 8,785 81,380 21,324 9,354 834,853 1,428,125
193,134 345,917 2,445,371 759,138 33,060 3,964,965 7,754,433
258,622 (337,132) (2,363,991) (737,814) (23,706) (3,130,112) (6,326,308)
- - - - - 4,020,500 4,020,500
- - - - (166,685) (635,434) (802,119)
- - - - - 192,439 192,439
- - - 4,000,000 1,600,000 511,500 6,111,500
- - - (40,000) (2,400) - (42,400)
- - - 3,960,000 1,430,915 4,089,005 9,479,920
258,622 (337,132) (2,363,991) 3,222,186 1,407,209 958,893 3,153,612
(592,535) 337,132 2,366,294 - - 8,520,200 12,563,759
(333,913)$ -$ 2,303$ 3,222,186$ 1,407,209$ 9,479,093$ 15,717,371$
-87-
Permanent Funds
Cemetery Perpetual Care Fund – This fund accounts for transfers from the Cemetery Fund, representing 15%
of lot sales. These funds are invested, and all investment earnings are transferred to the Cemetery Fund for lot
maintenance.
Parks Trust Fund – This fund accounts for contributions made for City parks, the principal of which must be
preserved in accordance with the trust indentures. Income derived from these contributions is transferred to the
Parks Department special revenue fund.
City of Lansing
Combining Balance Sheet - Nonmajor Permanent FundsJune 30, 2006
Cemetery
Perpetual Parks
Care Trust Totals
Assets
Assets
Equity in pooled cash 1,575,900$ 1,250$ 1,577,150$
Liabilities and Fund Balances
Fund balances
Unreserved, undesignated 1,575,900$ 1,250$ 1,577,150$
-88-
City of Lansing
Combining Statement of Revenues, Expenditures andChanges in Fund Balances - Nonmajor Permanent Funds
For the Year Ended June 30, 2006
Cemetery
Perpetual Parks
Care Trust Totals
Revenues
Rents -$ 12,335$ 12,335$
Interest 51,553 50 51,603
Total revenues 51,553 12,385 63,938
Other financing sources (uses)
Transfers in 19,260 - 19,260
Transfers out (51,553) (12,385) (63,938)
Total other financing sources (uses) (32,293) (12,385) (44,678)
Net change in fund balances 19,260 - 19,260
Fund balances, beginning of year 1,556,640 1,250 1,557,890
Fund balances, end of year 1,575,900$ 1,250$ 1,577,150$
-89-
Non-Major Enterprise Funds
Cemetery Fund – This fund accounts for the operation of City-owned cemeteries.
Golf Fund – This fund accounts for the operation of the City-owned golf courses.
Garbage and Rubbish Collection Fund – This fund accounts for the provision of household solid waste disposal
services to participating residents of the City.
Recycling Fund – This fund accounts for the provision of recycling services to participating residents of the City.
Potter Park Zoo Fund – This fund accounts for the operations of the Potter Park Zoo.
City of Lansing
Combining Statement of Net Assets - Nonmajor Enterprise FundsJune 30, 2006
Garbage and
Rubbish
Cemetery Golf Collection Recycling
Assets
Assets
Current assets:
Cash and cash equivalents -$ 11,368$ -$ -$
Equity in pooled cash 155,291 - - 1,089,471
Accounts receivable, net - 5,648 205,149 9,880
Inventories 56,407 37,977 1,939 -
Total current assets 211,698 54,993 207,088 1,099,351
Noncurrent assets -
Capital assets, net 159,677 3,391,867 - 842,433
Total assets 371,375 3,446,860 207,088 1,941,784
Liabilities
Current liabilities:
Accounts payable 2,385 5,976 78,136 22,225
Accrued interest payable - 12,254 - -
Accrued payroll 16,777 29,561 15,126 42,444
Interfund payable - 361,091 65,488 -
Unearned revenues - 37,687 62,829 -
Current portion of:
Long-term debt - 60,000 - -
Compensated absences 12,206 38,188 52,531 65,271
Total current liabilities 31,368 544,757 274,110 129,940
Noncurrent liabilities:
Long-term debt, net of current portion - 830,134 - -
Compensated absences 23,741 372 23,747 25,843
Total noncurrent liabilities 23,741 830,506 23,747 25,843
Total liabilities 55,109 1,375,263 297,857 155,783
Net Assets
Invested in capital assets, net
of related debt 159,677 2,501,733 - 842,433
Unrestricted (deficit) 156,589 (430,136) (90,769) 943,568
Total net assets (deficit) 316,266$ 2,071,597$ (90,769)$ 1,786,001$
-90-
Potter
Park Zoo Totals
8,970$ 20,338$
204,030 1,448,792
- 220,677
- 96,323
213,000 1,786,130
6,169,688 10,563,665
6,382,688 12,349,795
26,417 135,139
- 12,254
46,245 150,153
- 426,579
- 100,516
- 60,000
104,874 273,070
177,536 1,157,711
- 830,134
35,464 109,167
35,464 939,301
213,000 2,097,012
6,169,688 9,673,531
- 579,252
6,169,688$ 10,252,783$
-91-
City of Lansing
Combining Statement of Revenues, Expenses andChanges in Net Assets - Nonmajor Enterprise Funds
For the Year Ended June 30, 2006
Garbage and
Rubbish
Cemetery Golf Collection Recycling
Operating revenues
Charges for services 237,564$ 890,190$ 1,295,053$ 2,816,277$
Operating expenses
Personal services 479,619 616,287 610,818 1,706,686
Contractual and materials 245,642 615,011 801,802 1,252,496
Depreciation 27,890 116,844 - 22,548
Total operating expenses 753,151 1,348,142 1,412,620 2,981,730
Operating loss (515,587) (457,952) (117,567) (165,453)
Nonoperating revenues (expenses)
Interest revenue - - (617) 36,715
Loss on sale of capital assets (6,962) - - -
Interest expense and fees - (50,821) - -
Total nonoperating revenues
(expenses) (6,962) (50,821) (617) 36,715
Loss before contributions
and transfers (522,549) (508,773) (118,184) (128,738)
Capital contributions - 534,560 - -
Transfers in 506,993 474,041 - -
Transfers out (19,260) - - -
Change in net assets (34,816) 499,828 (118,184) (128,738)
Net assets, beginning of year 351,082 1,571,769 27,415 1,914,739
Net assets, end of year 316,266$ 2,071,597$ (90,769)$ 1,786,001$
-92-
Potter
Park Zoo Totals
471,703$ 5,710,787$
1,559,667 4,973,077
779,044 3,693,995
380,048 547,330
2,718,759 9,214,402
(2,247,056) (3,503,615)
- 36,098
- (6,962)
- (50,821)
- (21,685)
(2,247,056) (3,525,300)
834,213 1,368,773
1,970,691 2,951,725
- (19,260)
557,848 775,938
5,611,840 9,476,845
6,169,688$ 10,252,783$
-93-
City of Lansing
Combining Statement of Cash FlowsNonmajor Enterprise Funds
For the Year Ended June 30, 2006
Garbage and
Rubbish
Cemetery Golf Collection Recycling
Cash flows from operating activities
Cash received from customers 237,564$ 890,118$ 1,302,950$ 2,816,542$
Cash payments for goods and services (258,548) (645,553) (704,620) (1,250,139)
Cash payments to employees (475,822) (616,914) (606,061) (1,691,112)
Net cash provided (used) by
operating activities (496,806) (372,349) (7,731) (124,709)
Cash flows from noncapital
financing activities
Transfers in 506,993 474,041 - -
Transfers out (19,260) - - -
Net cash provided by noncapital
financing activities 487,733 474,041 - -
Cash flows from capital and related
financing activities
Acquisition of capital assets - (534,560) - -
Capital contributions received - 534,560 - -
Principal paid on bonds - (55,000) - -
Interest paid on bonds - (49,988) - -
Net cash used for capital and
related financing activities - (104,988) - -
Cash flows from investing activities
Interest and dividends - - (617) 36,715
Net increase (decrease) in cash and
cash equivalents (9,073) (3,296) (8,348) (87,994)
Cash and cash equivalents:
Beginning of year 164,364 14,664 8,348 1,177,465
End of year 155,291$ 11,368$ -$ 1,089,471$
-94-
Potter
Park Zoo Totals
471,703$ 5,718,877$
(784,483) (3,643,343)
(1,543,472) (4,933,381)
(1,856,252) (2,857,847)
1,970,691 2,951,725
- (19,260)
1,970,691 2,932,465
(937,896) (1,472,456)
834,213 1,368,773
- (55,000)
- (49,988)
(103,683) (208,671)
- 36,098
10,756 (97,955)
202,244 1,567,085
213,000$ 1,469,130$
continued…
-95-
City of Lansing
Combining Statement of Cash Flows (concluded)Nonmajor Enterprise Funds
For the Year Ended June 30, 2006
Garbage and
Rubbish
Cemetery Golf Collection Recycling
Reconciliation of operating income
(loss) to net cash provided (used)
by operating activities
Operating income (loss) (515,587)$ (457,952)$ (117,567)$ (165,453)$
Adjustments to reconcile operating
income (loss) to net cash from
operating activities:
Depreciation expense 27,890 116,844 - 22,548
Changes in assets and liabilities:
Accounts receivable - (72) 7,897 265
Inventory (3,799) 1,744 1,099 -
Accounts payable (454) (11,045) 48,810 (2,975)
Accrued interest payable - (674) - -
Accrued payroll 3,797 (627) 4,757 15,574
Interfund payable - (30,136) 65,488 -
Unearned revenues - 12,694 (7,922) -
Compensated absences (8,653) (3,125) (10,293) 5,332
Net cash provided (used) by
operating activities (496,806)$ (372,349)$ (7,731)$ (124,709)$
-96-
Potter
Park Zoo Totals
(2,247,056)$ (3,503,615)$
380,048 547,330
- 8,090
- (956)
1,358 35,694
- (674)
16,195 39,696
- 35,352
- 4,772
(6,797) (23,536)
(1,856,252)$ (2,857,847)$
-97-
Internal Service Funds
Public Service Garage Fund – This fund accounts for the costs of operating a maintenance facility for trucks and
equipment used by the Public Service Department.
Health Care Self Funding – This fund accounts for the costs of the City’s self-funded health insurance benefits.
City of Lansing
Combining Statement of Net AssetsInternal Service Funds
June 30, 2006
Public Health Care
Services Self
Garage Funding Totals
Assets
Current assets:
Equity in pooled cash 2,773,295$ -$ 2,773,295$
Receivables:
Accounts, net - 701,075 701,075
Inventories 271,796 - 271,796
Prepaids - 549,235 549,235
Due from other funds - 10,000 10,000
Interfund receivable 1,278,309 - 1,278,309
Total current assets 4,323,400 1,260,310 5,583,710
Noncurrent assets:
Bond issue costs 6,321 - 6,321
Capital assets, net 4,802,726 - 4,802,726
Total non-current assets 4,809,047 - 4,809,047
Total assets 9,132,447 1,260,310 10,392,757
Liabilities
Current liabilities:
Accounts payable 35,552 - 35,552
Accrued interest payable 25,145 - 25,145
Accrued payroll 36,952 - 36,952
Other - 696,750 696,750
Current portion of:
Long-term debt 115,000 - 115,000
Compensated absences 85,067 - 85,067
Total current liabilities 297,716 696,750 994,466
Noncurrent liabilities:
Long-term debt, net of current portions 1,295,000 - 1,295,000
Compensated absences 33,300 - 33,300
Total non-current liabilities 1,328,300 - 1,328,300
Total liabilities 1,626,016 696,750 2,322,766
Net assets
Invested in capital assets, net of related debt 3,373,902 - 3,373,902
Unrestricted 4,132,529 563,560 4,696,089
Total net assets 7,506,431$ 563,560$ 8,069,991$
-98-
City of Lansing
Combining Statement of Revenues, Expensesand Changes in Fund Net Assets
Internal Service FundsFor the Year Ended June 30, 2006
Public Health Care
Services Self
Garage Funding Totals
Operating revenues
Charges for services 3,615,276$ 18,360,160$ 21,975,436$
Operating expenses
Personal services 1,399,106 - 1,399,106
Purchase of goods and services 1,089,821 18,825,136 19,914,957
Depreciation 854,886 - 854,886
Total operating expenses 3,343,813 18,825,136 22,168,949
Operating income (loss) 271,463 (464,976) (193,513)
Nonoperating revenues (expenses)
Interest revenue 450 15,081 15,531
Interest expense and fees (79,358) - (79,358)
Amortization of bond issue costs (654) - (654)
Total nonoperating expenses (79,562) 15,081 (64,481)
Change in net assets 191,901 (449,895) (257,994)
Net assets, beginning of year 7,314,530 1,013,455 8,327,985
Net assets, end of year 7,506,431$ 563,560$ 8,069,991$
-99-
City of Lansing
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2006
Public Health Care
Services Self
Garage Funding Totals
Cash flows from operating activities
Cash received from interfund services 6,123,147$ 19,352,682$ 25,475,829$
Cash payments for goods and services (1,140,934) (19,367,763) (20,508,697)
Cash payments to employees (1,385,329) - (1,385,329)
Net cash provided (used) by
operating activities 3,596,884 (15,081) 3,581,803
Cash flows from capital and related financing activities
Acquisition and construction of capital assets (1,052,347) - (1,052,347)
Principal paid on revenue and general obligation bonds (110,000) - (110,000)
Interest paid on revenue and general obligation bonds (79,358) - (79,358)
Net cash provided by (used for)
capital and related financing activities (1,241,705) - (1,241,705)
Cash flows from investing activities
Interest and dividends 450 15,081 15,531
Net increase (decrease) in cash and cash equivalents 2,355,629 - 2,355,629
Cash and cash equivalents, beginning of year 417,666 - 417,666
Cash and cash equivalents, end of year 2,773,295$ -$ 2,773,295$
continued…
-100-
City of Lansing
Combining Statement of Cash Flows (concluded)
Internal Service Funds
For the Year Ended June 30, 2006
Public Health Care
Services Self
Garage Funding Totals
Reconciliation of operating income (loss) to
net cash provided by (used for) operating activities
Operating income (loss)271,463$ (464,976)$ (193,513)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities
Depreciation expense 854,886 - 854,886
Change in:
Accounts receivable - 992,522 992,522
Accrued interest receivable 49 - 49
Inventories (39,182) - (39,182)
Prepaids - (82,222) (82,222)
Interfund receivable 2,507,822 - 2,507,822
Accounts payable (15,716) - (15,716)
Accrued interest payable (1,962) - (1,962)
Accrued payroll 13,777 - 13,777
Other - (460,405) (460,405)
Compensated absences 5,747 - 5,747
Total adjustments 3,325,421 449,895 3,775,316
Net cash provided by (used for) operating activities 3,596,884$ (15,081)$ 3,581,803$
-101-
Agency Funds
Bail Bonds Fund – This fund is used to hold cash received by the District Court for bail bonds.
Garnishment, Indemnity Bond and Restitution Fund – This fund is used to hold cash received by the District
Court for garnishment payments until claimed, and to hold indemnity bonds deposited relating to civil disputes
until the Court rules on the case.
City of Lansing
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2006
54-A District Court
Garnishment,
Bail Indemnity Bond
Bonds and Restitution Totals
Assets
Cash and cash equivalents 102,124$ 16,573$ 118,697$
Equity in pooled cash 134,004 5,678 139,682
Total assets 236,128$ 22,251$ 258,379$
Liabilities
Undistributed receipts 236,128$ 22,251$ 258,379$
-102-
City of Lansing
Combining Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2006
Beginning Ending
Balance Additions Deletions Balance
54-A District Court - Bail Bonds
Assets
Cash and cash equivalents 65,000$ 37,124$ -$ 102,124$
Equity in pooled cash 209,417 833,617 909,030 134,004
Total assets 274,417$ 870,741$ 909,030$ 236,128$
Liabilities
Undistributed receipts 274,417$ 870,741$ 909,030$ 236,128$
54-A District Court - Garnishment, Indemnity Bond and Restitution
Assets
Cash and cash equivalents 15,000$ 1,573$ -$ 16,573$
Equity in pooled cash 14,092 135,641 144,055 5,678
Total assets 29,092$ 137,214$ 144,055$ 22,251$
Liabilities
Undistributed receipts 29,092$ 137,214$ 144,055$ 22,251$
Total - All Agency Funds
Assets
Cash and cash equivalents 80,000$ 38,697$ -$ 118,697$
Equity in pooled cash 223,509 969,258 1,053,085 139,682
Total assets 303,509$ 1,007,955$ 1,053,085$ 258,379$
Liabilities
Undistributed receipts 303,509$ 1,007,955$ 1,053,085$ 258,379$
-103-
STATISTICAL SECTION
-104-
STATISTICAL SECTION
This part of the City of Lansing’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial
statements, note disclosures, and requires supplementary information says about the
city’s overall financial health
Contents Pages
Financial Trends 105-108
These schedules contain trend information to help the reader
understand how the city’s financial performance and
well-being have changed over time.
Revenue Capacity 109-113
These schedules contain information to help the reader assess
the factors affecting the city’s ability to generate its property
taxes.
Debt Capacity 114-118
These schedules present information to help the reader assess
the affordability of the city’s current levels of outstanding debt
and the city’s ability to issue additional debt in the future.
Demographic and Economic Information 119-120
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
city’s financial activities take place and to help make
comparisons over time and with other governments.
Operating Information 121-123
These schedules contain information about the city’s operations
and resources to help the reader understand how the city’s
financial information relates to the services the city provides and
the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year. The city implemented Statement 34 in 2002; schedules presenting government-wide
information include information beginning in that year.
-1
0
5
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Schedule 1
City of Lansing
Net Assets by Component
Last Five Fiscal Years
(accrual basis of accounting)Fiscal Year
2006 2005 2004 2003 2002
(2)
Governmental activities
Invested in capital assets, net of related debt $190,243,447 $198,338,788 $197,530,605 $193,545,003 $176,742,875
Restricted 36,706,345 33,900,657 6,370 172,111
Unrestricted 514,601 1,632,040 15,331,622 20,363,235 39,491,342
Total governmental activities net assets 227,464,393 233,871,485 212,862,227 213,914,608 216,406,328
Business-type activities
Invested in capital assets, net of related debt 161,324,071 163,834,290 138,830,169 163,715,373 154,922,603
Restricted 36,365,431 39,493,526 718,828 1,039,093 2,105,762
Unrestricted 27,788,610 22,701,430 64,268,351 35,649,876 36,078,930
Total business-type activities net assets 225,478,112 226,029,246 203,817,348 200,404,342 193,107,295
Primary government
Invested in capital assets, net of related debt 351,567,518 362,173,078 336,360,774 357,260,376 331,665,478
Restricted 73,071,776 73,394,183 718,828 1,045,463 2,277,873
Unrestricted 28,303,211 24,333,470 79,599,973 56,013,111 75,570,272
Total primary government net assets $452,942,505 $459,900,731 $416,679,575 $414,318,950 $409,513,623
(1) no discretely presented component units shown
(2) in 2005 the City's definition of "restricted net assets" was changed to include assets in funds set up to account for
activities outside of the General Fund, for Governmental Activities, and to include restricted cash for debt retirement
for Business Type Activities.
-106-
Schedule 2
City of Lansing
Changes in Net Assets
Last Five Fiscal Years
(accrual basis of accounting)Fiscal Year
2006 2005 2004 2003 2002
Expenses
Governmental activities:
General government $34,375,762 $53,533,838 $53,353,559 $54,386,814 $48,907,951
Public safety 60,047,271 38,668,349 41,292,750 36,998,022 37,442,294
Public works 31,790,944 30,670,483 22,118,173 23,740,767 22,332,626
Recreation and culture 7,881,212 5,464,143 7,979,953 8,055,078 6,790,347
Community development 7,124,491 6,996,000 8,387,559 9,647,696 8,960,204
Interest on long-term debt 1,197,851 1,033,078 2,041,758 2,333,691 2,705,290
Total governmental activities expenses 142,417,531 136,365,891 135,173,752 135,162,068 127,138,712
Business-type activities
Sewage disposal system 21,706,537 20,631,611 20,864,079 19,350,186 17,218,878
Municipal parking system 18,403,163 10,151,018 9,196,910 8,840,334 8,322,193
Cemetery 753,151 802,949 828,073 688,571 570,291
Golf 1,398,963 1,446,615 1,620,669 1,583,711 1,222,525
Garbage and rubbish collection 1,412,620 1,421,617 1,321,760 1,288,178 1,229,951
Recycling 2,981,730 2,862,003 2,768,307 2,642,541 2,437,371
Potter Park Zoo 2,718,759 2,690,943 2,542,065 2,228,724 1,778,059
Total business-type activities expenses 49,374,923 40,006,756 39,141,863 36,622,245 32,779,268
Total primary government expenses $191,792,454 $176,372,647 $174,315,615 $171,784,313 $159,917,980
Program Revenues
Governmental activities:
Charges for services:
General government 6,416,850 6,264,142 4,686,901 4,611,471 1,908,603
Public safety 13,087,372 12,400,853 11,682,187 11,031,998 10,393,731
Public works 3,891,646 2,646,007 2,713,258 2,627,959 2,345,220
Recreation and culture 1,405,584 1,598,968 1,581,607 1,472,203 1,509,159
Community development 66,486 66,788
Operating grants and contributions 16,158,496 16,673,481 15,746,181 15,968,081 17,980,993
Capital grants and contributions 3,659,169 3,479,536 3,033,891 1,734,008 2,822,477
Total governmental activities program revenues 44,685,603 43,129,775 39,444,025 37,445,720 36,960,183
Business-type activities:
Charges for services:
Sewage disposal system 26,867,610 26,890,756 26,529,842 26,045,574 25,414,112
Municipal parking system 10,289,830 9,628,690 7,510,354 7,642,684 7,763,065
Cemetery 237,564 230,716 226,631 199,760 231,304
Golf 890,190 929,266 951,923 997,177 1,014,675
Garbage and rubbish collection 1,295,053 1,322,111 1,315,413 1,189,489 801,418
Recycling 2,816,277 2,636,002 2,115,917 2,138,308 1,928,476
Potter Park Zoo 471,703 558,654 505,666 436,199 426,434
Capital grants and contributions 1,368,773 731,575 93,207 914,570 0
Total business-type activities program revenues 44,237,000 42,927,770 39,248,953 39,563,761 37,579,484
Total primary government program revenues $88,922,603 $86,057,545 $78,692,978 $77,009,481 $74,539,667
Net(Expenses)/Revenues
Governmental activities ($97,731,928) ($93,236,116) ($95,729,727) ($97,716,348) ($90,178,529)
Business-type activities (5,137,923) 2,921,014 107,090 2,941,516 4,800,216
Total primary government net expense ($102,869,851) ($90,315,102) ($95,622,637) ($94,774,832) ($85,378,313)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property Taxes 37,506,017 36,181,408 40,354,088 39,571,155 39,158,867
Income taxes 27,032,176 27,435,047 27,437,494 29,099,955 27,596,270
Unrestricted grants and contributions 26,817,633 26,355,710 26,338,413 28,198,831 28,618,275
Investment earnings 1,634,608 715,608 312,069 725,936 972,802
Miscellaneous 774,822 104,563 2,903,792 1,838,895 1,946,818
Transfers (3,132,465) (2,123,435) (2,668,510) (4,130,144) (1,925,790)
Total governmental activities 90,632,791 88,668,901 94,677,346 95,304,628 96,367,242
Business-type activities:
Investment earnings 1,453,076 1,298,407 249,855 294,425 628,797
Miscellaneous 1,248 23,736 387,551 343,174 1,438,488
Transfers 3,132,465 2,123,435 2,668,510 3,717,932 1,486,240
Total business-type activities 4,586,789 3,445,578 3,305,916 4,355,531 3,553,525
Total primary government $95,219,580 $92,114,479 $97,983,262 $99,660,159 $99,920,767
Changes in Net Assets
Governmental activities ($7,099,137) ($4,567,215) ($1,052,381) ($2,411,720) $6,188,713
Business-type activities (551,134) 6,366,592 3,413,006 7,297,047 8,353,741
Total primary government ($7,650,271) $1,799,377 $2,360,625 $4,885,327 $14,542,454
no discretely presented component units shown
-1
0
7
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Schedule 3
City of Lansing
Fund Balances, Governmental Funds
Last Five Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2006 2005 2004 2003 2002
General Fund
Reserved $2,443,224 $2,482,589 $1,324,109 $945,386 $1,145,896
Unreserved 4,634,961 4,709,909 5,606,958 5,985,681 5,785,171
Total General Fund $7,078,185 $7,192,498 $6,931,067 $6,931,067 $6,931,067
All Other Governmental Funds
Reserved 613,533 2,139,438 3,688,795 4,541,303 4,898,039
Unreserved, reported in:
Special revenue funds 18,798,291 17,635,170 17,950,570 17,933,354 19,123,737
Capital projects funds 15,717,371 12,563,759 15,293,862 16,967,327 19,447,491
Debt service funds 88,826 4,400 0 0 0
Permanent funds 1,577,150 1,557,890 0 0 0
Total all other governmental funds $36,795,171 $33,900,657 $36,933,227 $39,441,984 $43,469,267
Total all governmental funds $43,873,356 $41,093,155 $43,864,294 $46,373,051 $50,400,334
(1) In 2005 the City's definition for Permanent Funds fund balance changed to "Unreserved" due to the nature of the funds
being set up as a reserved fund.
-108-
Schedule 4
City of Lansing
Changes in Fund Balance, Governmental Funds
Last Five Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2006 2005 2004 2003 2002
Revenues
Property taxes $37,957,773 $36,527,417 $40,354,088 $39,426,786 $39,303,237
Income taxes 27,032,176 27,497,542 27,413,270 29,159,482 27,577,803
Licenses and permits 860,647 791,655 814,989 925,455 976,332
Intergovernmental 34,964,225 35,624,372 36,312,111 36,183,631 41,155,183
Charges for services 19,436,267 17,931,572 16,745,202 15,522,204 15,057,729
Fines and forfeits 4,515,951 4,351,977 4,870,577 5,645,029 4,383,678
Interest and rents 1,710,674 720,707 357,382 823,308 1,096,086
Contributions 9,385,831 8,966,289 8,744,295 9,255,742 8,069,915
Donations from private sources 549,055 126,182 22,031 376,793 85,307
Other revenue 1,082,283 1,320,064 1,285,903 779,115 703,332
Total revenues 137,494,882 133,857,777 136,919,848 138,097,545 138,408,602
Expenditures
General government 34,956,037 55,746,807 54,420,735 53,381,289 49,156,129
Public safety 59,143,629 38,121,596 40,145,137 39,321,853 39,290,562
Highways and streets 10,879,004 10,467,860 9,216,004 9,776,628 9,110,517
Recreation and culture 7,509,183 5,517,980 6,229,014 6,555,043 6,219,773
Other functions 8,259,415 8,520,848 6,971,380 5,725,184 8,255,056
Capital outlay 13,306,810 12,614,723 11,917,608 15,241,548 14,195,769
Debt service
Interest 1,145,588 1,187,673 2,331,276 2,625,499 2,951,352
Principal 3,244,879 3,592,766 6,874,234 6,298,264 7,886,020
Total expenditures 138,444,545 135,770,253 138,105,388 138,925,308 137,065,178
Excess of revenues over (under) expenditures (949,663) (1,912,476) (1,185,540) (827,763) 1,343,424
Other Financing Sources (Uses)
Proceeds from borrowing 6,087,507 1,784,465 570,000 1,500,000 3,914,787
Proceeds from sale of capital assets 774,822 74,565 799,497 99,434 896,818
Transfers in 8,170,998 8,274,929 13,628,444 14,083,970 16,789,516
Transfers out (11,303,463)(10,398,364)(16,321,156)(18,802,923)(18,715,306)
Total other financing sources (uses) 3,729,864 (264,405) (1,323,215) (3,119,519) 2,885,815
Net change in fund balance 2,780,201 (2,176,881) (2,508,755) (3,947,282) 4,229,239
Debt service as a percentage of
noncapital expenditures 3.5% 3.9% 7.3% 7.2% 8.8%
-1
0
9
-
Schedule 5
City of Lansing
Assessed Value and estimated Actual Value of Taxable Property
Last Six Fiscal Years
Fiscal Total Assessed
Year Personal Total Taxable Direct Estimated Value as a
Ended Residential Commercial Industrial Property Assessed Tax Actual Percentage of
June 30,Property Property Property Valuation Valuation Rate Value Actual Value
2001 $988,356,656 $560,554,545 $72,068,138 $305,623,290 $1,926,602,629 $16.96 $3,853,205,258 50.0%
2002 1,036,176,015 632,166,043 138,185,676 289,408,415 2,095,936,149 16.46 4,191,872,298 50.0%
2003 1,088,980,029 661,752,030 157,367,277 303,247,208 2,211,346,544 15.93 4,422,693,088 50.0%
2004 1,135,019,090 686,609,099 178,744,095 287,439,600 2,287,811,884 15.93 4,575,623,768 50.0%
2005 1,196,695,728 702,969,958 175,906,035 288,421,700 2,363,993,421 15.88 4,727,986,842 50.0%
2006 1,266,935,505 730,413,466 180,564,805 251,293,200 2,429,206,976 15.88 4,858,413,952 50.0%
Tax rates are per $1,000 of assessed value.
-1
1
0
-
Schedule 6
City of Lansing
Direct and Overlapping Property tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
Fiscal City Direct Rates Overlapping Rates
Year
Ended Tax Operating Service City County School State College Other
June 30, Year Millage Millage Millage Millage Millage Education Millage Millage Total
1997 1996 15.04 2.36 17.40 7.55 19.90 6.00 2.94 6.06 59.85
1998 1997 15.04 2.06 17.10 7.61 18.88 6.00 2.94 7.43 59.96
1999 1998 15.04 2.06 17.10 7.61 18.94 6.00 2.94 7.41 60.00
2000 1999 14.90 2.06 16.96 7.61 19.52 6.00 2.92 7.36 60.37
2001 2000 14.90 2.06 16.96 7.61 19.04 6.00 2.92 7.62 60.15
2002 2001 14.40 2.06 16.46 7.61 19.10 6.00 3.89 7.59 60.65
2003 2002 14.90 1.03 15.93 8.11 19.01 6.00 3.87 8.34 61.26
2004 2003 14.90 1.03 15.93 8.11 19.06 5.00 3.85 8.89 60.84
2005 2004 14.90 .98 15.88 8.10 20.65 6.00 3.84 8.83 63.30
2006 2005 14.90 .98 15.88 8.18 20.40 6.00 3.81 8.78 63.04
Notes: (1) Rates for Ingham County and Lansing School District only.
(2) Since 1995 this is the Non-homestead rate.
(3) Includes Intermediate School, Airport Authority, Capital
Area Transit Authority and Capital Area District Library (began in FY 98).
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-112-
-113-
Schedule 8
City of Lansing
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy Total Collections to Date
Taxes Levied Current Percent of Delinquent Total Collections
for the Tax Levy Tax Tax as a Percent
30-Jun Fiscal Year Collection Collected Collection Collection of Levy
1997 $33,626,394 $33,561,067 99.81% $11,500 $33,572,567 99.84%
1998 33,360,681 33,269,198 99.73% (402) 33,268,796 99.72%
1999 34,984,481 34,887,287 99.72% 70,749 34,958,036 99.92%
2000 35,027,907 34,886,808 99.60% 48,074 34,934,882 99.73%
2001 35,547,497 35,330,288 99.39% 18,522 35,348,810 99.44%
2002 36,357,748 36,208,985 99.59% 59,625 36,268,610 99.75%
2003 37,310,656 37,041,662 99.28% (97,842) 36,943,820 99.02%
2004 38,267,514 37,826,436 98.85% 58,255 37,884,691 99.00%
2005 40,051,303 39,429,093 98.45% 137,727 39,566,820 98.79%
2006 41,261,397 41,022,735 99.42% 77,747 41,100,483 99.61%
(1) Net of chargebacks from the County Tax Revolving Funds for taxes still delinquent after three years.
-1
1
4
-
Schedule 9
City of Lansing
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
General Special General Total
Fiscal Obligation Assessment Lease Obligation Revenue Lease Primary
Year Bonds Debt Purchases Loans Bonds Bonds Purchases Loans Government
1997 $64,959,000 $457,000 $12,900,000 $910,000 $15,351,000 $106,990,000 $111,000 $0 $201,678,000
1998 66,473,000 306,000 12,767,000 549,000 18,215,000 103,960,000 65,000 0 202,335,000
1999 43,643,000 170,000 12,733,000 151,000 41,411,000 105,595,000 18,000 0 203,721,000
2000 21,090,000 140,000 11,501,000 0 49,330,000 101,800,000 0 0 183,861,000
2001 17,310,000 115,000 12,135,000 650,000 55,069,000 97,845,000 0 0 183,124,000
2002 33,668,000 90,000 11,266,000 650,000 123,022,000 32,705,000 0 0 201,401,000
2003 29,553,133 65,000 11,043,847 534,329 129,302,048 29,230,000 0 0 199,728,357
2004 25,078,133 45,000 9,858,752 408,283 158,303,225 55,375,000 0 4,179,649 253,248,042
2005 13,320,000 35,000 8,396,154 1,543,195 165,029,785 51,710,000 0 4,180,000 244,214,134
2006 17,245,000 25,000 7,351,126 1,409,844 168,824,004 47,905,000 0 4,180,000 246,939,974
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Schedule 10
City of Lansing
Ratios of General Bonded Debt Outstanding
Last Six Fiscal Years
Debt
Payable
From Ratio of
Fiscal Debt Enterprise Net Bonded Net
Year Service Revenues Debt to Bonded
Ended Taxable Gross Bonded Monies & Special Net Bonded Taxable Debt per
30-Jun Population(1) Value(3) Debt(2) Available Assessments Debt Value Capita
2001 119,128 $1,926,602,629 $128,819,227 $266,393 $93,171,094 $35,381,740 0.0184 $297
2002 119,128 2,095,936,149 135,999,133 28,496 102,232,751 33,737,886 0.0161 283
2003 119,128 2,211,346,544 140,043,000 7,524 110,419,899 29,615,577 0.0134 249
2004 119,128 2,287,811,884 166,581,000 42,852 145,505,724 21,032,424 0.0092 177
2005 119,128 2,363,993,421 178,349,785 4,400 165,029,785 13,315,600 0.0056 112
2006 119,128 2,429,206,976 186,094,004 88,826 168,849,004 17,156,174 0.0071 144
NOTE: (1) Population per decennial census by the U.S. Census Bureau.
(2) Includes all general obligation debt and special assessment debt with governmental obligation.
(3) The tax assessment day is December 31 prior to beginning of fiscal year.
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Schedule 11
City of Lansing
Direct and Overlapping Governmental Activities Debt
As of June 30, 2006
Net General
Obligation Bonded Amount
Name of Debt % Applicable Applicable
Governmental Unit Outstanding to City to City
Direct - City 24,074,307$ (1) 100.00% 24,074,307$
Overlapping
Eaton Intermediate School District 1,850,000 0.85% 15,725$
Waverly School District 43,770,000 0.25% 109,425
Lansing School District 72,390,000 85.30% 61,748,670
East Lansing School District 83,632,243 4.35% 3,638,003
Holt School District 108,895,865 2.97% 3,234,207
Ingham Intermediate School District - 27.06% -
Ingham County 33,777,786 31.13% 10,515,025
Eaton County 13,881,938 2.13% 295,685
Lansing Community College 56,405,000 22.83% 12,877,262
Okemos School District 41,873,000 2.87% 1,201,755
Grand Ledge 53,620,000 1.71% 916,902
Total Overlapping Debt 94,552,658
Total Direct and Overlapping Debt 118,626,965$
(1) Excluding general obligation bonds reported in the enterprise funds, special assessment
debt with government commitment and amount available for repayment in the debt service
fund.
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Schedule 12 Legal Debt Margin Calculation for Fiscal Year 2006
City of Lansing
Legal Debt Margin Information Assessed value, real and personal property $3,006,831,213
Last Ten Fiscal Years Assessed value equivalents 136,244,900
Total valuation 3,143,076,113
Legal debt margin
Debt limitation - 10 percent of total valuation 314,307,611
Debt applicable to limit
Total City Bonded Debt 233,999,004
Add City Share:
Drain Commission-County Issued 229,776
Joint Building Authority-County Issued 6,133,077
Brownfield Redevelopment Authority 2,225,000
TIF Supported Bonds 6,918,133
249,504,990
Less:
Special Assessment Bonds ($25,000)
Michigan Transportation (MTF) Bonds (1,600,000)
Sewage Disposal Revenue Bonds (47,905,000)
Pollution Abatement (CSO Project) Bonds (96,879,004)(146,409,004)
Total net debt applicable to limit 103,095,986
Legal debt margin $211,211,625
Fiscal Year
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Debt limit 192,395,800$ 192,592,070$ 205,063,128$ 212,623,130$ 237,216,205$ 256,314,667$ 273,340,110$ 289,486,027$ 302,811,105$ 314,307,611$
Total net debt applicable to limit 86,415,828 86,274,817 100,429,777 85,744,355 81,504,924 73,872,709 70,893,614 87,171,139 75,882,359 103,095,986
Legal debt margin 105,979,972$ 106,317,253$ 104,633,351$ 126,878,775$ 155,711,281$ 182,441,958$ 202,446,496$ 202,314,888$ 226,928,746$ 211,211,625$
Total net debt applicable to the limit
as a percentage of debt limit 44.92% 44.80% 48.98% 40.33% 34.36% 28.82% 25.94% 30.11% 25.06% 32.80%
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Schedule 13
City of Lansing
Pledged-Revenue Coverage
Last Ten Fiscal Years
Parking System Bonds Sewage Disposal Bonds
Fiscal Year Direct Net Revenue Direct Net Revenue
Ended Gross Operating Available for Debt Service Requirements Gross Operating Available for Debt Service Requirements
30-Jun Revenue Expenses(2)_Debt Service Principal Interest Total Coverage (1) Revenue Expenses(2) Debt Service Principal Interest Total Coverage(1)
1997 7,031,243$ 3,329,415$ 3,701,828$ 595,000$ 1,402,952$ 1,997,952$ 1.85 20,137,924$ 10,113,705$ 10,024,219$ 2,100,000$ 2,750,865$ 4,850,865$ 2.07
1998 6,848,019 3,257,757 3,590,262 625,000 1,373,545 1,998,545 1.80 20,867,394 10,004,525 10,862,869 2,235,000 2,624,340 4,859,340 2.24
1999 7,085,473 3,597,530 3,487,943 655,000 1,258,195 1,913,195 1.82 21,107,381 9,996,022 11,111,359 2,370,000 2,492,280 4,862,280 2.29
2000 7,490,165 3,993,315 3,496,850 690,000 1,143,550 1,833,550 1.91 21,623,804 10,528,286 11,095,518 2,180,000 1,656,475 3,836,475 2.89
2001 8,029,967 3,773,187 4,256,780 720,000 1,109,988 1,829,988 2.33 24,193,795 10,574,104 13,619,691 3,065,000 1,976,600 5,041,600 2.70
2002 7,763,065 3,750,268 4,012,797 755,000 1,073,858 1,828,858 2.19 25,841,763 10,592,681 15,249,082 3,190,000 1,854,090 5,044,090 3.02
2003 7,642,684 3,667,542 3,975,142 795,000 1,035,228 1,830,228 2.17 26,963,775 11,209,711 15,754,064 3,320,000 1,723,253 5,043,253 3.12
2004 7,504,144 3,872,290 3,631,854 835,000 1,762,629 2,597,629 1.40 26,196,518 11,543,509 14,653,009 3,475,000 1,723,253 5,198,253 2.82
2005 7,728,468 4,018,913 3,709,555 880,000 1,927,704 2,807,704 1.32 26,601,646 12,775,001 13,826,645 3,715,000 1,786,328 5,501,328 2.51
2006 12,855,727 3,945,472 8,910,255 5,405,000 1,737,215 7,142,215 1.25 27,932,464 12,867,761 15,064,703 3,805,000 2,036,736 5,841,736 2.58
(1) Coverage is defined as net revenue available for debt service divided by
debt service requirements.
(2) Operating expenses less depreciation.
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Schedule 14
City of Lansing
Demographic and Economic Statistics
Last Ten Fiscal Years
Per capita
Personal Personal Median School Unemployment Labor
Year Population(1) Income Income(5)Age(2) Enrollment(3) % Rate(4) Force(4)
1997 127,400 $2,285,810,800 $17,942 31.40 20,013 2.9 66,275
1998 127,400 2,285,046,400 17,936 31.64 19,049 4.1 66,425
1999 127,400 2,284,282,000 17,930 31.88 18,443 4.2 66,550
2000 119,100 2,134,748,400 17,924 31.40 17,836 4.7 68,300
2001 119,100 2,134,036,817 17,918 31.56 17,586 4.5 67,725
2002 119,100 2,133,325,472 17,912 31.72 17,490 5.6 67,700
2003 119,100 2,132,614,363 17,906 31.88 17,600 6.7 65,325
2004 119,100 2,131,903,492 17,900 31.96 16,927 7.0 63,750
2005 119,100 2,131,192,857 17,894 32.00 16,201 9.0 68,041
2006 119,100 2,130,460,800 17,888 32.16 16,014 8.4 67,023
(1) Population per decennial census by the U.S. Census Bureau.
(2) 2000 data from U.S. Census Bureau. Data for other years estimated by City of
Lansing Finance Department.
(3) Annual school census from the Lansing School District.
(4) Michigan Department of Career Development: Employment Service Agency - Labor Market Information.
(5) Personal income for 2000 and 2005 from the U.S.Census Bureau. The other years were extrapolated
from 2000 and 2005.
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Schedule 15
City of Lansing
Principal Employers,
2006
Percentage
of Total City
Employer Employees Rank Employment
(1) (2)
State of Michigan 14,355 1 6.04%
Michigan State University 10,500 2 4.42%
General Motors 6,300 3 2.65%
Sparrow Health System 6,000 4 2.52%
Lansing Community College 3,180 5 1.34%
Ingham Regional Medical Center 2,500 6 1.05%
Lansing School District 2,106 7 0.89%
Meijer 2,000 8 0.84%
Auto Owners Insurance 1,500 9 0.63%
Peckham, Inc. 1,400 10 0.59%
(1) Data is representative of the Greater Lansing Region
(2) Based on a Greater Lansing Region employment of 237,788
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Schedule 16
City of Lansing
Full-time Equivalent City Governmental Employees by Function/Program
June 30, 2006
Function/Program
General Government
City Clerk 7
City Council 16
District Court 64
Finance 51
Human Relations and Community Services 8
Law 9
Mayor's Office 12
Management Services 62
Personnel Services 18
Transportation 10
Planning and Neighborhood Development 51
Public Safety
Police officers 309
Police civilians 57
Firefighters and officers 227
Fire civilians 6
Public Works
O&M Public Works 95
Service Garage 17
Engineering 17
Recreation 74
Sewage Disposal 48
Parking System 54
Cemetery 11
Golf 35
Garbage and Recycling 35
Potter Park Zoo 19
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Schedule 17
City of Lansing
Operating Indicators by Function/Program
Fiscal Year ended June 30, 2006
Function/Program
Public Safety
Fire Department responses 14,869
EMS related 12,152
Fire related 2,117
Police Department responses 87,551
Arrests 7,479
Traffic violations 30,948
Public Works
Potholes filled 494
Streets resurfaced (miles) 27
Recreation
Recreation participation 38,878
Pavillion rentals 602
Sewage Disposal
Average amount processed daily (gal) 15 million
Parking System
Average number of monthly permits 4,073
Parking tickets issued 82,221
Cemetery
Lots sold 104
Golf
Annual rounds played 57,256
Garbage and Rubbish
Yards sent to landfill 30,517
Recycling
Recycled goods sold (tons) 9,386
Yards composted 21,304
Potter Park Zoo
Annual attendance 96,659
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Schedule 17
City of Lansing
Capital Asset Statistics by Function/Program
June 30, 2006
Function/Program
Public Safety
Police Stations 3
Police Patrol Units 55
Fire Stations 9
Public Works
Streets (miles) 409.89
Traffic signals 194
Recreation
Park acreage 2,219.63
Playgrounds 76
Baseball/softball fields 61
Soccer/football fields 6
Community centers 4
Sewage Disposal
Sanitary sewers (miles) 338
Storm sewers (miles) 217
Combined sewers (miles) 208
Parking System
Ramps 5
Lots 15
Meters 2,489
Cemetery
Number of cemeteries 3
Golf
Number of courses 3
Acreage 318
Garbage and Rubbish
Refuse collection trucks 20
Recycling
Recycling trucks 10
Potter Park Zoo
Number of animals 403