HomeMy WebLinkAbout2025 ACFR CAFR Comprehensive Financial Report Audit Fiscal Year end June 2025 CITY OF LANSING, MICHIGAN
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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Andy Schor, Mayor
Prepared by:
Department of Finance
Chief Financial Officer/Finance Director
Crystal Thomas
Controller
Charles H. Randall
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION................................................................................................................................................................1
Electedand Appointed Officers.......................................................................................................................................................2
Letterof Transmittal.........................................................................................................................................................................3-9
Certificate of Achievement for Excellence in Financial Reporting.................................................................................10
Tableof Organization........................................................................................................................................................................11
FINANCIALSECTION.........................................................................................................................................................................12
INDEPENDENT AUDITOR'S REPORT.......................................................................................................................................13-15
MANAGEMENT'S DISCUSSION AND ANALYSIS..................................................................................................................16-26
BASICFINANCIAL STATEMENTS.................................................................................................................................................27
Government-wide Financial Statements
Statementof Net Position.....................................................................................................................................................29-30
Statementof Activities..............................................................................................................................................................31
Fund Financial Statements
Governmental Funds
BalanceSheet............................................................................................................................................................................34
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position................35
Statement of Revenues,Expenditures,and Changes in Fund Balances..........................................................36
Reconciliation of the Statement of Revenues,Expenditures,and Changes in
Fund Balances of Governmental Funds to the Statement of Activities.........................................................37
Proprietary Funds
Statementof Net Position...................................................................................................................................................39
Statement of Revenues,Expenses,and Changes in Fund Net Position............................................................40
Statementof Cash Flows...................................................................................................................................................41-42
Fiduciary Funds
Statement of Fiduciary Net Position...............................................................................................................................44
Statement of Changes in Fiduciary Net Position.......................................................................................................45
Discretely Presented Component Units Financial Statements
Combining Statement of Net Position............................................................................................................................48
Combining Statement of Activities..................................................................................................................................49
Notesto Financial Statements..............................................................................................................................................50-117
REQUIRED SUPPLEMENTARY INFORMATION.....................................................................................................................118
General Fund
Schedule of Revenues,Expenditures,and Changes in Fund Balance- Budget and Actual....................119-121
State and Federal Grants Fund
Schedule of Revenues,Expenditures,and Changes in Fund Balance- Budget and Actual.........................122
Employees'Retirement System Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios........................................................................123
Scheduleof Contributions......................................................................................................................................................124
Scheduleof Investment Returns..........................................................................................................................................125
TABLE OF CONTENTS
Page
REQUIRED SUPPLEMENTARY INFORMATION (concluded)
Police and Fire Retirement System Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios........................................................................126
Scheduleof Contributions......................................................................................................................................................127
Schedule of Investment Returns..........................................................................................................................................128
VEBA OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios.............................................................................129
Scheduleof Contributions......................................................................................................................................................130
Scheduleof Investment Returns..........................................................................................................................................131
Employees'Retirement System OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios.............................................................................132
Scheduleof Contributions......................................................................................................................................................133
Schedule of Investment Returns..........................................................................................................................................134
Police and Fire Retirement System OPEB Plan
Schedule of Changes in Net OPEB Liability and Related Ratios.............................................................................135
Scheduleof Contributions......................................................................................................................................................136
Scheduleof Investment Returns..........................................................................................................................................137
Note to Required Supplementary Information............................................................................................................138-139
OTHER SUPPLEMENTARY INFORMATION............................................................................................................................140
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet-Nonmajor Governmental Funds..............................................................................142
Combining Statement of Revenues,Expenditures,and Changes in Fund
Balances-Nonmajor Governmental Funds..............................................................................................................143
Combining Balance Sheet-Nonmajor Special Revenue Funds.....................................................................145-146
Combining Statement of Revenues,Expenditures,and Changes in Fund
Balances-Nonmajor Special Revenue Funds.....................................................................................................147-148
Schedules of Revenues,Expenditures,and Changes in Fund Balance-
Budgetand Actual-by Fund......................................................................................................................................149-157
Combining Balance Sheet-Nonmajor Debt Service Funds.................................................................................159
Combining Statement of Revenues,Expenditures,and Changes in Fund
Balance-Nonmajor Debt Service Funds...................................................................................................................160
Combining Balance Sheet-Nonmajor Capital Projects Funds...........................................................................162
Combining Statement of Revenues,Expenditures,and Changes in Fund
Balances-Nonmajor Capital Projects Funds...........................................................................................................163
Combining Balance Sheet-Nonmajor Permanent Funds....................................................................................165
Combining Statement of Revenues,Expenditures,and Changes in Fund
Balances-Nonmajor Permanent Funds....................................................................................................................166
Nonmajor Enterprise Fund
Combining Statement of Net Position...........................................................................................................................168
Combining Statement of Revenues,Expenses,and Changes in Fund Net Position...................................179
Combining Statement of Cash Flows.............................................................................................................................170
TABLE OF CONTENTS
Page
OTHER SUPPLEMENTARY INFORMATION (concluded)
Combining and Individual Fund Financial Statements and Schedules (concluded)
Internal Service Funds
Combining Statement of Net Position...........................................................................................................................172
Combining Statement of Revenues,Expenses,and Changes in Fund Net Position...................................173
CombiningStatement of Cash Flows.............................................................................................................................174
Fiduciary Funds
Pension and Other Postemployment Benefit Trust Funds
Combining Statement of Fiduciary Net Position..................................................................................................176
Combining Statement of Changes in Fiduciary Net Position..........................................................................177
Custodial Funds
Combining Statement of Fiduciary Net Position..................................................................................................178
Combining Statement of Changes in Fiduciary Net Position..........................................................................179
STATISTICAL SECTION (UNAUDITED)....................................................................................................................................180
Table
1 Net Position by Component...........................................................................................................................................182
2 Changes in Net Position.............................................................................................................................................183-184
3 Fund Balance,Governmental Funds..........................................................................................................................185
4 Changes in Fund Balances of Governmental Funds............................................................................................186
5 Assessed Value and Estimated Actual Value of Taxable Property................................................................187
6 Direct and Overlapping Property Tax Rates..........................................................................................................188
7 Principal Property Taxpayers......................................................................................................................................189
8 Property Tax Levies and Collections.........................................................................................................................190
9 Ratios of Outstanding Debt by Type..........................................................................................................................191
10 Ratios of General Bonded Debt Outstanding.........................................................................................................192
11 Direct and Overlapping Governmental Activities Debt.....................................................................................193
12 Legal Debt Margin Information...................................................................................................................................194
13 Pledged-Revenue Coverage...........................................................................................................................................195
14 Demographic and Economic Statistics.....................................................................................................................196
15 Principal Employers.........................................................................................................................................................197
16 Full-Time Equivalent City Governmental Employees by Function/Program..........................................198
17 Operating Indicators by Function/Program..........................................................................................................199
18 Capital Assets Statistics by Function/Program....................................................................................................200
INTRODUCTORY SECTION
1
CITY OF LANSING,MICHIGAN
LANSING CITY GOVERNMENT
Fiscal Year Ended June 30, 2025
MAYOR
Andy Schor
CITY COUNCIL
Ryan Kost,Council President, 1st Ward
Tamera Carter,Council Vice President,At Large
Jeremy A.Garza,2nd Ward
Peter Spadafore,At Large
Jeffrey Brown,At Large
Adam Hussain, 3rd Ward
Brian T.Jackson,4th Ward
Trini Pehlivanoglu,At Large
CLERK
Chris Swope
DISTRICT COURT JUDGES
Stacia Buchanan,Chief Judge
Kristen D.Simmons
Cynthia M.Ward
Tony Flores
OFFICERS
Chief Information Officer....................................................................................................... Jason Hogan
Chief Strategy Officer............................................................................................................... Jake Brower
Chief Labor Negotiator............................................................................................................ Dennis Parker
Human Resources Director................................................................................................... Elizabeth O'Leary
City Assessor............................................................................................................................... Jennifer Czeiperger
CityAttorney............................................................................................................................... Gregory Venker
Communications Director..................................................................................................... Scott Bean
Chief Financial Officer/City Treasurer............................................................................. Crystal Thomas
Court Administrator................................................................................................................. Anethia Brewer
DeputyMayor............................................................................................................................. Christopher Mumby
Economic Development &Planning Director.............................................................. Rawley Van Fossen
FireChief....................................................................................................................................... Brian Sturdivant
Human Relations&Community Service Director....................................................... Kimberly Coleman
Neighborhoods&Citizen Engagement............................................................................ DeLisa Fountain
Parks&Recreation Director................................................................................................. Brett Kaschinske
PoliceChief.................................................................................................................................. Robert Backus
Public Service Director........................................................................................................... Andy Kilpatrick
2
dS ]PC ,"
FINANCE DEPARTMENT
124 W. Michigan Ave., 81" Floor
Lansing, Michigan 48933
I
517.483.4500
}Ii
Andy Schor,Mayor
December 19, 2025
Council President Ryan Kost and Council Members
10th Floor City Hall
Lansing,Michigan 48933-1694
Dear President and Council Members,
The Finance Department is pleased to submit the comprehensive annual financial report for the City of Lansing,
Michigan,for the fiscal year ended June 30,2025.
The City of Lansing assumes full responsibility for both the accuracy of the data and the completeness and
fairness of the presentation,including all disclosures. To the best of our knowledge and belief,the enclosed data
is accurate in all material respects and is reported in a manner designed to present fairly the financial position
and results of the government operations and of the various funds of the City. All disclosures necessary to enable
the reader to gain an understanding of the City's financial activities have been included.
The City's fiscal year 2024/2025 financial statements have been audited by Maner Costerisan,an independent
firm of licensed, certified public accountants located within the Capital Region. The goal of the independent
audit is to provide reasonable assurance that the financial statements for the City for the fiscal year-end June 30,
2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures contained in the financial statements, assessing the accounting
principles used,and evaluating the overall financial statement presentation. The independent audit concluded
with the rendering of an unmodified opinion on the statements,meaning the financial statements present fairly
and accurately in all material respects in conformity with the Generally Accepted Accounting Principles (GAAP).
The Independent Auditor Report is presented as the first component of the financial section of this report.
This letter of transmittal is designed to complement the Management Discussion and Analysis (MD&A) and
should be read in conjunction with it. The Management Discussion and Analysis can be found immediately
following the Independent Auditor Report.
Profile of the City of Lansing
Serving as Michigan's capital since 1848, the City of Lansing was incorporated in 1859 and operates under
provisions of Public Act 279 of 1909,as amended(Home Rule City Act). The City incorporates 34.7 square miles
and is in Michigan's Lower Peninsula within the northwestern corner of Ingham County and the northeastern
corner of Eaton County. The City operates under a mayor/council form of government,where the Mayor serves
as the chief executive of the City and is elected on an at-large basis to serve a four-year term. Lansing is a mature
core city with a population of 112,644 according to the 2020 census and offers a full range of services. During
the fiscal year ended June 30,2025,the City operated a police headquarters and precinct with 212 sworn police
officers,six fire stations with a fire protection force of 166,over 390 miles of sanitary sewers,239 miles of storm
sewers and 64 miles of combined sewers, over 413 miles of roads, 111 parks, a District Court and support for
human services and cultural events. The City's main sources of revenue are property taxes,income taxes,State
revenue sharing,Federal entitlement grants and charges for services including utility billings.
3
Reporting Entity
The financial reporting entity(the City)includes all of the funds of the primary government(i.e.the City as legally
defined) as well as its blended component unit the Lansing Building Authority. Blended component units,
although legally separate entities,are in substance part of the primary government's operations and are included
as part of the primary government. Discretely presented component units are reported in a separate column in
the combined financial statements to emphasize that they are legally separate from the primary government
and to differentiate their financial position, results of operations and cash flows from those of the primary
government. The Lansing Entertainment&Public Facilities Authority,Tax increment Finance Authority,and the
Brownfield Redevelopment Authority are reported as discretely presented component units.
Financial Management and Control
Management of the City of Lansing is responsible for establishing and maintaining internal controls. These
controls are designed to ensure that the assets of the government are protected from loss,theft,or misuse and
to assure that adequate accounting data is compiled. This allows for the accurate presentation of financial
statements in conformity with generally accepted accounting principles. Such controls include appropriate
policies and procedures, ongoing risk assessment and monitoring and review processes which are
communicated throughout City operations. Because the cost of internal controls generally should not outweigh
their benefits, the City's framework of internal controls has been designed to provide reasonable rather than
absolute assurance that these objectives are met.
Because the City is a recipient of federal grant dollars the independent audit of the financial statements of the
City of Lansing was part of a broader federally mandated"single audit"in conformity with the provisions of Title
2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit
Requirements for Federal Awards (Uniform Guidance). The standards governing the single audits require the
independent auditor to report not only on the fair presentation of the financial statements but also on the
audited government's internal controls and compliance with legal requirements involving the administration of
the federal awards. These reports are available in the City's separately issued Single Audit Report.
Financial results and applicable policies affecting year-end results for the fiscal year ended June 30, 2025, are
discussed in the Management Discussion and Analysis (MD&A),located immediately following the Independent
Auditor Reports.
Budgeting Controls
The annual budget serves as the foundation for the City's financial planning,policymaking and control. The City
Charter requires that the Mayor submit to the City Council a proposed budget by the fourth Monday in March.
Not later than the third Monday in May of each year,the City Council shall,by resolution,adopt a budget for the
ensuing fiscal year. Budgetary controls and limitations are noted in the Note Disclosure Section of the financial
statements.
The City also maintains an encumbrance accounting system, whereby purchase order amounts are deducted
from the available budget as one technique of accomplishing budgetary control. Encumbered amounts lapse at
year-end and require City Council approval to be carried forward to the ensuing fiscal year for amounts greater
than$5,000 or greater than eight months old.
4
Local Economy
The City of Lansing is the seat of the Michigan state government. The local economy is comprised of a diversified
mix of business, health care, education, and industries. With Michigan State University, Davenport University,
Western Michigan University, and Lansing Community College, the region has a strong higher education
presence. The metro Lansing region is also home to several national insurance company headquarters and
healthcare services with two major hospitals in the City and a wide variety of technology firms. Manufacturing
also has a strong presence, especially in the automotive and biotech engineering sectors, with two General
Motors assembly plants and related facilities located in the City, including a Logistics Center and a regional
stamping plant, automotive suppliers throughout the region, production of particle accelerators, and vaccine
research and production. Within the City, major taxpayers and employers include, but are not limited to, the
health care sector - University of Michigan Health-Sparrow and McLaren Health Care Corporation,
manufacturing- General Motors, research sector - Emergent BioSolutions, Neogen Corporation, and Niowave,
Inc.,and financial services and insurance-Jackson National Life and AF Group.
Lansing serves as the region's cultural center. Recent major investments have continued to revitalize Lansing
and power the local economy. These new projects range in size from large to small and will continue to make
Lansing a great place that offers the benefits of a big city with the affordability and convenience of a small town.
The City of Lansing brought our economic development team back in-house in mid-2022, re-establishing the
Lansing Economic Development Corporation. With nine full-time staff, the Lansing EDC accomplishes this by
attracting and growing businesses, redeveloping properties, and using public/private partnerships. We
continue our regional partnership with the Lansing Economic Area Partnership (LEAP).
Development Projects
Some notable future development projects currently underway include:
0 $40 million new City Hall is transforming a former parking lot. It is located in the Cherry Hill district
and is scheduled for completion late fall 2026.
• $175 million Lansing public safety bond will pay for newly constructed public safety and courts campus.
This new facility will house the headquarters of the Lansing Fire Department, the Lansing Police
Department, a new fire station, temporary detention facility, and the 54-A District Court. The new,
central location for public safety services will be on S. Washington Ave., south of the REO Town
Commercial District and is scheduled for completion in the spring of 2027.
0 The Ovation Music and Arts Center, which will be located downtown next to the former Lake Trust
location,will be a new$30 million,state-of-the-art live performance venue is scheduled for completion
spring of 2027.
• The $316 million multi-project New Vision Lansing development is transforming key areas of the city
with mixed-use and residential spaces (573 housing units). Highlights of the 5-project initiative include
development of the city's tallest tower,conversion of vacant office space into residences,and renovation
of historic structures.
• Lansing EDC received a nearly$19 million Strategic Site Readiness Program(SSRP)Grant from the State
of Michigan for the evaluation,remediation,and preparation of the former Fisher Body/GM Plant 6 site
for future redevelopment. In collaboration with the developer, NorthPoint Development, the Lansing
EDC continues to advance the site towards the redevelopment. This investment in preparing and
marketing the site has the opportunity to drive job creation,attract industry,and help revitalize the local
economy,making it a cornerstone for the long-term prosperity of our community.
5
For the year 2025, Lansing EDC was able to assist 5 projects in obtaining financial support and incentive
approvals that helped make the investments economically viable. These projects represent over$100 million in
new investment, 121 housing units,and 70 new jobs in Lansing and are now ready to start construction or are
already underway.
These developments bring the total investment and jobs supported by Lansing EDC since 2018 to over $4.5
billion and over 3,500, respectively. Residential construction activity in Lansing is also accelerating, including
nearly 1000 new units of multi-family housing recently approved or currently underway, all expected to be
complete by 2028. This is in addition to the 468 new units of multi-family housing completed since 2023.
Projects Approved in 2025 include:
• Turner North Development: New multi-family residential development in the heart of Old Town
Lansing. Investment: $26 million: Housing Units: 76 (all workforce at or below 80 percent AMI).
• Brick Row Redevelopment: Mixed-use redevelopment in downtown Lansing's Stadium District.
Investment: $8.1 million. Housing Units: 15 (all workforce below 120 percent AMI).
• 820 W. Miller: Emerging developer-led commercial redevelopment in South Lansing. Investment: $4
million. Jobs Created: 14 FTEs.
• Holmes&Pleasant Grove: New mixed-use development in the heart of southwest Lansing. Investment:
$9.6 million. Housing Units: 30 (all workforce below 100 percent AMI).
• Niowave Expansion: Business expansion project that will grow Niowave's Radioisotope Manufacturing
Facility that develops cutting-edge medical isotope production for fighting cancer. Investment: $65
million:Jobs Created: 70 FTEs.
Commercial Corridor Improvement
The City and Lansing EDC has targeted four commercial corridors to focus special redevelopment efforts. These
Corridor Improvement Authorities are the Michigan Avenue Corridor Improvement Authority(MACIA),Saginaw
Street Corridor Improvement Authority (SSCIA), South Martin Luther King Jr. Blvd. Corridor Improvement
Authority (SMLKCIA), and the Lansing Gateway Corridor Improvement Authority (LGCIA). The CIAs bring
together the businesses and stakeholders along key commercial road corridors to create and implement
development and finance plans to revise those areas economically and aesthetically.
The South Martin Luther King Jr. Corridor Improvement Authority (SMLKCIA) has made significant strides in
revitalizing the corridor throughout 2025.
• In partnership with the Michigan Department of Transportation, the Authority installed three new
pedestrian islands at high-traffic areas along the corridor. These improvements aim to reduce accidents
and fatalities by encouraging drivers to slow down and providing pedestrians with safer crossing points.
• To uplift the corridor's visual identity,SMLKCIA hosted a community-focused art competition,resulting
in new artwork being installed on several CATA bus shelters.
• The Authority launched the Southwest Thrive Program, a four-week business development series for
southwest Lansing entrepreneurs-graduating eight participants. This initiative was supported by the
USDOT Thriving Communities Grant and local stakeholders.
• SMLKCIA introduced a small business grant program offering up to $10,000 for businesses located
within the corridor.
• The Authority is now working with a local marketing company to brand the corridor, enhance
community engagement,establish a dedicated website,install branded materials along the corridor,and
launch a new Facebook page.
• The SMLKCIA hosted its first annual community cleanup.
• SMLKCIA Chair,Amanda Defrees,showcased all of these accomplishments on WLNS's Discover Lansing
show.
6
The Saginaw Street Corridor Improvement Authority(SSCIA) focused on branding the corridor and improving
the aesthetic. The Authority established a communications and marketing subcommittee made up of community
members and board representatives. Together,they selected a local marketing firm to brand the corridor as the
"Mural District" and strengthen community outreach efforts. To complement this new identity, the SSCIA
created a Mural Sponsorship Program designed to support businesses and property owners interested in
installing murals along the corridor.
The Michigan Avenue Corridor Improvement Authority (MACIA) continued its efforts to support businesses
during the ongoing Michigan Avenue redesign.
• The Authority hosted a virtual information session in partnership with the City of Lansing and the
Lansing Regional Chamber of Commerce to provide updates on the construction process.
• MACIA also completed its Block 2000 Facade Improvement Project, further enhancing the corridor's
appearance.
The North Grand River Avenue Corridor Improvement Authority, known as the Lansing Gateway CIA (LGCIA),
made meaningful progress toward the goals outlined in its Development and Tax Increment Financing Plan in
2025.
• The Authority invested in maintenance and beautification efforts by hosting a community cleanup and
maintaining their landscaping installation on the east side of the corridor.
• The LGCIA established a business grant program to support corridor businesses through its grant
program,offering grants up to$10,000.
• The LGCIA developed a Mural Sponsorship Program,set to launch in 2026.
• The Authority closed out the year by hosting its annual community event at the historic Turner-Dodge
House.
Facade Improvement Program
Lansing EDC administers the City of Lansing Facade Improvement Grant Program. This program provides design
assistance as well as reimbursement for the redevelopment and improvement of exterior commercial facades.
The purpose of this program is to assist with aesthetic beauty and safety improvements as well as enhance the
street appearance of Lansing businesses. Because of this program, Lansing properties have become more
attractive to customers and the community,increasing the overall value of local businesses.
In 2025, 19 businesses were awarded grants from the Facade Improvement Program, totaling $270,695 in
funding commitments, spurring additional private investment. Additionally, the Lansing EDC applied for and
secured an additional $500k from the Michigan Economic Development Corporation and LEAP for the city's
facade improvement program. Businesses supported through the Facade Improvement Program can be found
all over Lansing and have been appreciated by the community and business owners,who see this as a way for
the city of Lansing to reinvest in the Lansing economy.
Business Services
In 2025,the Lansing EDC offered several business services to local Lansing businesses. These services included
workshops and seminars,liquor licenses,and business loans.
The liquor license program is to assist businesses that are looking to obtain a liquor license but have difficulty
finding a suitable liquor license on the open market. The Lansing EDC assisted two new businesses with
obtaining liquor licenses in growing parts of the city. The first was a development liquor license for Jollof Afro
Caribbean Lounge in downtown Lansing. The second was a redevelopment liquor license with Lansing Duckpin
Bowling,which is in the Red Cedar Redevelopment District.
7
Lansing EDC also continued to assist local businesses with our microloan program. The microloan program
offers favorable loan terms to businesses that need financial assistance for expansion. This past year, Lansing
EDC provided $80,000 in loan support. Since 2018, Lansing EDC has lent out over $400,000 in direct loan
assistance to 8 Lansing-based businesses.
Additionally, the Lansing EDC partnered with PNC Bank to offer workshops and six seminars for small
businesses, with topics ranging from business plans to financials. This program provided a venue for local
business owners to come and ask questions about business banking,business lending,business financials,and
techniques to lower costs and grow their businesses.Lansing EDC and PNC were able to help educate and assist
over 25 local Lansing business owners through this program.
In the last year, the Lansing EDC Retention Expansion and Attraction Program launched as a proactive, data-
driven economic strategy to retain existing businesses through support and problem-solving, attract new
investment with specialized resources and marketing, and facilitate the expansion of local companies. The
purpose is to drive sustainable job creation and strengthen the city's economy. In 2025,the Lansing EDC met
with over 70 local businesses to discuss opportunities, issues, and overall business strength. These meetings
resulted in development projects,grant opportunities,loans,creation of a pitchbook showcasing strategic sites,
business connections and partnerships,and other crucial business services.
Lansing Equitable Economic Development(LEED) Initiative
In 2021, the Jobs and Economic Development Workgroup of Lansing Mayor Andy Schor's Racial Justice and
Equity Alliance identified a critical need to ensure that underserved and underrepresented entrepreneurs and
communities have the tools,opportunities,and access to expertise,resources,and training needed to start and
sustain successful businesses,and to participate fully in the economic development process.
To address these findings, the Lansing EDC developed the Lansing Equitable Economic Development (LEED)
Initiative. The LEED Initiative is designed to equip entrepreneurs from underserved and underrepresented
groups through programs that provide financial resources and technical assistance to build strong, successful
businesses and to increase the number of locally led community-driven real estate development projects.
The Empower Program is a component of the LEED Initiative. In 2025,11 Lansing business owners participated
in the 2nd cohort of the Empower Program. These businesses benefited from:
• A 6-month program that provides business owners with a team of dedicated project managers,
consultants, and business specialists to create and implement an individualized business development
plan.
• Bi-weekly, in-person training sessions covering business strategy, marketing, systems development,
automation to support scaling,and other key topics to support their growth.
• Professional brand development services to market and generate revenue,human resources consulting
for staffing strategies and systems, financial management consulting, and other forms of technical
assistance.
In 2026,the Lansing EDC will host two additional Empower Program cohorts beginning in January.
8
The Lansing EDC launched its first cohort of the Lansing Supporting Empowered Emerging Developers (SEED)
Academy in 2025. The inaugural program supported 20 emerging developers who benefited from:
• A multi-month development training program designed to build the foundational skills needed to pursue
real estate projects,including feasibility analysis,project planning,and development readiness.
• A structured curriculum featuring sessions on financial modeling,site selection,development processes,
accessing capital,and navigating city development systems.
• Individualized guidance and mentorship from experienced real estate developers to support
participants as they evaluate potential projects and build their development portfolios.
• Opportunities to participate in property assessments, case studies,and peer-to-peer learning designed
to strengthen practical knowledge and confidence.
Many participants are now advancing real estate projects in Lansing,receiving incentive approvals,and moving
along the pre-development stages. Collectively,these emerging developers are moving forward with projects
representing nearly $20 million in anticipated investment, signaling a strong and growing pipeline of
community-focused development expected to contribute to neighborhood revitalization citywide.
The Targeted Redevelopment effort is a key component of the LEED Initiative, focused on strengthening
economic conditions and investment readiness in underserved areas of Lansing. In 2025,the Lansing EDC began
a partnership with CityCraft, a nationally recognized planning and redevelopment firm, to support a
comprehensive targeted effort in Southwest Lansing. This work is designed to address economic challenges
through a coordinated approach that brings together multi-sector stakeholders, including business leaders,
economic development partners, educational institutions, environmental organizations, and health-sector
representatives. While the work is in its early stages,the engagement with CityCraft has already helped build
momentum and attract additional interest and partnerships that will be further developed in 2026. Alongside
this effort,the Lansing EDC also began supporting a separate effort to spark a community planning process for
other Neighborhoods of Focus, which will guide long-term investment and neighborhood-led visioning.
Together,these early actions lay the foundation for a broader,sustained targeted redevelopment strategy that
will continue expanding in the coming year.
The accomplishments of 2025 demonstrate a year of meaningful progress, strategic investment, and growing
community capacity. From major redevelopment projects to support for small businesses and emerging
developers,the City of Lansing and its partners have helped drive new economic activity in every corner of the
city. Lansing's commercial corridors are becoming more vibrant, more housing is being built across income
levels,and new tools and programs are empowering the next generation of local entrepreneurs and developers.
With regards,
Crystal L.Thomas,Finance Director
9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lansing
Michigan
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
0 4,4& . P. -?Ay�
Executive Director/CEO
10
Table of Organization
Citizens of Lansing
City Clerk City Council Mayor I L 54-A District Court
Internal Audit City Attorney's Office of
1 I Office !r Community Media
Review Transactions Legal Advisor/Defender Public Education Grant
Identify Efficiencies Prosecutor for City City Television
Analyze Programs
Economic Neighborhoods
Police Fire Development & Citizen Public Parks Service Recreation
& Planning Engagement
Patrol Suppression Planning/Zoning Neighborhood Resources Roads/Sidewalks Parks Design
Crime Investigation Prevention Code Compliance Citizen Engagement Sewers/Treatment Recreation Programs
Community Policing Emergency Mgmt. Building Safety Financial Empowerment Trash/Recycling Community Centers
Social Work Rescue/Hazards Parking System Grounds Maint. Cemeteries
Detention Economic Dev.Corp. Engineering Golf
LEPFA Property Mgmt.
Downtown Lansing,Inc Fleet Services
Information Human Human Relations &
Finance Operations Treasury Assessing
Technology Resources Community Services
IT Helpdesk Recruiting Grant Writing Assistance Accounting/Budget Income Taxes Assessing
Cybersecurity Training Human Services Grants Financial Reporting Property Taxes Property Tax Roll
Software Mgmt. Payroll/Benefits Police Investigations Strategic Planning
Retirement Neighborhood Ombudsman
11
FINANCIAL SECTION
12
2425 E.Grand River Ave.,
Maner Suite 1,Lansing,MI 48912
'a517.323.7500
(0.pw
CD 517.323.6346
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Lansing,Michigan
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Lansing,Michigan (the City),as of and for the year ended June 30, 2025,and the
related notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
In our opinion,the financial statements referred to above present fairly,in all material respects,the respective
financial position of the governmental activities,the business-type activities,the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Lansing, as of
June 30,2025,and the respective changes in financial position,and,where applicable,cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in GovernmentAuditing Standards,issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described
in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required
to be independent of the City of Lansing and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management of the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate,that raise substantial doubt about the City of Lansing's ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
13
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement,whether due to fraud or error, and to issue an auditor's report that includes our
opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards,we:
➢ Exercise professional judgment and maintain professional skepticism throughout the audit.
➢ Identify and assess the risks of material misstatement of the financial statements,whether due to fraud
or error,and design and perform audit procedures responsive to those risks. Such procedures include
examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements.
➢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City of Lansing's internal control. Accordingly,no such opinion is expressed.
➢ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management,as well as evaluate the overall presentation of the financial
statements.
➢ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City of Lansing's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis,budgetary comparison schedules,and the pension and OPEB schedules,as identified in
the table of contents,be presented to supplement the basic financial statements. Such information,although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America,which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
14
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying other supplementary information, as
identified in the table of contents,is presented for the purpose of additional analysis and is not a required part
of the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United State of America. In our opinion, the other supplementary information, as
identified in the table contents, is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor's report thereon. Our opinions on the basic financial statements do not cover the other information,and
we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements,our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated December 19, 2025,
on our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws,regulations,contracts,and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
December 19,2025
15
MANAGEMENT'S DISCUSSION AND ANALYSIS
16
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the City of Lansing, Michigan ("the City") provides this narrative overview and analysis of
the financial activities of the City for the fiscal year ended June 30, 2025 for the benefit of the readers of these
financial statements. This management's discussion and analysis ("MD&A") is intended to assist the reader in
focusing on significant financial issues and provide an overview of the City's financial activity. The City
encourages the readers to consider the following information here in conjunction with the financial statements
taken as a whole,which follow this section.
Financial Highlights
Total net position $ 113,662,971
Change in total net position 62,155,424
Fund balances,governmental funds 271,458,723
Change in fund balances,governmental funds (24,204,188)
Unassigned fund balance,general fund 20,956,351
Change in fund balance,general fund (10,661,567)
Long-term obligations outstanding 398,693,437
Change in long-term obligations (3,198,099)
Overview of the Financial Statements
This MD&A is an introduction to the City's basic financial statements, which comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other required supplementary information in addition to the basic financial
statements.
Government-wide Financial Statements. The government-wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The
Statement of Net Position and the Statement of Activities are two financial statements that report information
about the City,as a whole,and about its activities,which provide measurements of long-term trends that should
help answer this question:Is the City,as a whole,better off or worse off as a result of this year's activities? Unlike
the governmental funds,the current year's revenues and expenses are taken into account regardless of when
cash is received or paid,known as"full accrual accounting".
The Statement of Net Position presents all of the City's assets, deferred outflows of resources, liabilities, and
deferred inflows of resources with the difference between these categories reported as"net position". Over time,
increases and decreases in net position are an indicator of whether the City's long-term financial position is
improving or deteriorating,but can also change as a result of governmental accounting standards.
The Statement of Activities presents information showing how the City's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying events giving rise to the
change occur,regardless of the timing of related cash flows. Therefore,revenues and expenses are reported in
these statements for some items that will only result in cash flows in future fiscal periods(e.g.,uncollected taxes
and earned but unused vacation leave).
17
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Statement of Net Position and the Statement of Activities report three activities,as follows:
➢ Governmental Activities. Most of the City's basic services are reported under this category. Property
taxes, income taxes, and intergovernmental revenues generally fund these services. The Council
(legislative branch),the District Court(judicial branch),and general operations of the executive branch
departments,such as police,fire,parks,public works,and other general staff departments fall within the
governmental activities.
➢ Business-type Activities. The City charges fees to customers to help cover all or most of the costs of
certain services it provides. Sewage collection and treatment and commercial area parking are examples
of business-type activities.
➢ Discretely Presented Component Units. Component units are legally separate organizations for which the
elected officials of the primary government are financially accountable. The City has various discretely
presented units: the Brownfield Redevelopment Authority, the Tax Increment Finance Authority,
Saginaw Street Corridor Improvement Authority, Michigan Avenue Corridor Improvement Authority,
and the Lansing Entertainment and Public Facilities Authority.
These financial statements include two schedules that reconcile the amounts reported on the governmental fund
financial statements(modified accrual accounting)with governmental activities (full accrual accounting)on the
appropriate government-wide statements. The following summarizes the impact of transitioning from modified
accrual to full accrual accounting:
➢ Capital assets used in governmental activities are not reported on governmental fund statements.
➢ Certain revenues that are earned,but not available for use within the reporting period,are reported as
revenues for governmental activities, but are reported as deferred inflows of resources on the
governmental fund statements.
➢ Other long-term assets that are not available to pay for current period expenditures are deferred in
governmental fund statements but not deferred on the government-wide statements.
➢ Internal service funds are reported as governmental activities but reported as proprietary funds in the
fund financial statements.
➢ Bond discounts and premiums in connection with the issuance of long-term obligations are reported as
other financing sources/uses in governmental fund statements but are capitalized and amortized in the
government-wide statements.
➢ Unless due and payable, long-term liabilities, such as capital lease obligations, compensated absences,
and others only appear as liabilities in the government-wide statements.
➢ Capital outlay spending in excess of capitalization thresholds are recorded as capital assets on the
government-wide statements but are reported as expenditures on the governmental fund statements.
➢ Bond and note proceeds result in liabilities on the government-wide statements but are recorded as
other financing sources on the governmental fund statements.
18
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
➢ Certain other outflows,such as debt service principal payments,represent decreases in liabilities on the
government-wide statements,but are reported as expenditures on the governmental fund statements.
➢ Pension and other postemployment benefits liabilities and related deferrals relating to governmental
funds are only reported in the government-wide statements.
The Notes to the Financial Statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements.
Fund Financial Statements. The City's major funds are identified as the General Fund,State and Federal Grants
Fund, Public Safety Capital Projects Fund, Sewage Disposal System Fund, and Municipal Parking System Fund.
Data for all other funds,termed"nonmajor funds",are combined into a single,aggregated presentation. A fund
is a fiscal and accounting entity with a self-balancing set of accounts that the City uses to keep track of specific
sources of funding and spending for a particular purpose.
➢ Governmental Funds. Most of the City's basic services are reported in the governmental funds, which
focus on how money flows into and out of those funds and the balances left at year-end that are available
for future spending. The governmental fund financial statements provide a detailed short-term view of
the City's general government operations and the basic services it provides. Governmental fund
information helps determine whether there are greater or fewer financial resources that can be spent in
the near future to finance the City's programs. These funds are reported using modified accrual
accounting, which measures cash and all other financial assets that can readily be converted to cash.
Governmental funds include the General Fund and special revenue, capital projects, debt service, and
permanent funds.
➢ Proprietary Funds. When the City charges customers for the services it provides, whether to outside
customers or to other agencies within the City, these services are generally reported in proprietary
funds. Proprietary funds (enterprise and internal service) utilize full accrual accounting; the same
method used by private sector businesses. Enterprise funds report activities that provide supplies and
services to the general public. Examples are the Sewage Disposal Fund and the Municipal Parking Fund.
Internal service funds are reported as governmental activities on the government-wide statements.
➢ Fiduciary Funds. The City acts as a trustee or fiduciary, for its employee pension and other post-
employment benefit plans and for the 54-A District Court. It is also responsible for other assets that,
because of a trust arrangement,can be used only for the trust beneficiaries. The City's fiduciary activities
are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position.
These funds,which include pension and other postemployment benefit funds, 54-A District Court, and
Current Tax Collections Fund are reported using full accrual accounting. The government-wide
statements exclude fiduciary fund activities and balances because these assets are restricted in purpose
and do not represent spendable assets of the City to finance its operations.
Required Supplementary Information
Following the basic financial statements is additional Required Supplementary Information that further explains
and supports the information in the financial statements. The Required Supplementary Information includes
required pension and other postemployment benefit supplementary information.
19
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
Other Supplementary Information
Other supplementary information includes combining and individual fund financial statements for nonmajor
governmental,proprietary,and fiduciary funds. These funds are added together,by fund type,and presented in
single columns in the basic financial statements,but are not reported individually, as with major funds, on the
governmental fund financial statements.
Government-wide Financial Analysis
The City's combined net position increased$62,155,424 over the course of this fiscal year's operations and came
to a total of$113,662,971. Net position of governmental activities increased $46,308,253, and business-type
activities increased$15,847,171. Explanations for those changes are described below under the governmental
activities and business-type activities sections of this Management Discussion and Analysis.
Governmental Activities Business-type Activities Total
2024 2025 2024 2025 2024 2025
Current and other assets $ 386,021,657 $ 355,340,312 $ 100,108,710 $ 102,933,454 $ 486,130,367 $ 458,273,766
Capital assets,net 254,074,672 298,783,823 348,518,214 354,947,299 602,592,886 653,731,122
Total assets 640,096,329 654,124,135 448,626,924 457,880,753 1,088,723,253 1,112,004,888
Deferred outflows of resources 25,983,198 26,445,333 4,406,790 3,110,093 30,389,988 29,555,426
Current liabilities 64,078,358 61,169,200 20,003,378 15,851,490 84,081,736 77,020,690
Noncurrent liabilities 826,020,529 784,884,516 143,634,727 138,971,280 969,655,256 923,855,796
Total liabilities 890,098,887 846,053,716 163,638,105 154,822,770 1,053,736,992 1,000,876,486
Deferred inflows of resources 12,503,658 24,730,517 1,365,044 2,290,340 13,868,702 27,020,857
Net position
Investment in capital assets 176,420,751 205,735,308 235,698,400 240,137,502 412,119,151 445,872,810
Restricted 58,248,755 93,840,171 2,555,433 2,614,049 60,804,188 96,454,220
Unrestricted (471,192,524) (489,790,244) 49,776,732 61,126,185 (421,415,792) (428,664,059)
Total net position $ (236,523,018) $ (190,214,765) $ 288,030,565 $ 303,877,736 $ 51,507,547 $ 113,662,971
The largest component of the City's net position reflects its net investment in capital assets (e.g.,land,buildings,
equipment,infrastructure,and others). Restricted net position is the next largest component,which represents
amounts subject to external restrictions such as bond covenants, State legislation, or Constitutional provision.
The remaining portion, unrestricted net position are resources that may be used at the City's discretion, but
often have limitations based on policy action. The large increase in unrestricted net position of governmental
activities was primarily due to the recognition of additional grants and contributions recognized in the current
year along with ARPA funds and lost revenue.
20
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following condensed financial information was derived from the government-wide Statement of Activities
and reflects how the City's net position changed during the fiscal year:
Governmental Activities Business-type Activities Total
2024 2025 2024 2025 2024 2025
Revenue
Program revenue
Charges for services $ 24,116,838 $ 29,897,855 $ 54,847,143 $ 58,214,357 $ 78,963,981 $ 88,112,212
Operating grants and contributions 59,174,797 60,541,900 - - 59,174,797 60,541,900
Capital grants and contributions 7,674,594 20,324,049 7,674,594 20,324,049
General revenue
Taxes 107,768,728 107,222,109 107,768,728 107,222,109
State shared revenues-unrestricted 18,441,141 18,680,615 18,441,141 18,680,615
Other 41,658,523 42,079,987 5,009,248 3,882,157 46,667,771 45,962,144
Total revenue 258,834,621 278,746,515 59,856,391 62,096,514 318,691,012 340,843,029
Expenses
General government 21,814,859 40,902,819 - - 21,814,859 40,902,819
Judicial 7,054,673 7,770,640 7,054,673 7,770,640
Health and welfare 1,938,213 2,439,927 1,938,213 2,439,927
Public safety 57,755,851 98,437,224 57,755,851 98,437,224
Public works 34,560,876 36,107,434 34,560,876 36,107,434
Recreation and culture 10,664,726 9,921,532 10,664,726 9,921,532
Community and economic development 15,909,940 26,405,304 15,909,940 26,405,304
Interest on long-term debt 9,387,497 9,429,656 9,387,497 9,429,656
Sewage disposal system - - 27,098,938 31,760,216 27,098,938 31,760,216
Municipal parking system 8,016,197 7,528,763 8,016,197 7,528,763
Cemetery 265,303 1,373,345 265,303 1,373,345
Golf 165,498 141,903 165,498 141,903
Garbage and rubbish collection 4,170,087 3,320,575 4,170,087 3,320,575
Recycling - - 2,636,909 3,148,267 2,636,909 3,148,267
Total expenses 159,086,635 231,414,536 42,352,932 47,273,069 201,439,567 278,687,605
Change in net position before transfers 99,747,986 47,331,979 17,503,459 14,823,445 117,251,445 62,155,424
Transfers(out)in (223,750) (1,023,726) 223,750 1,023,726
Change in net position 99,524,236 46,308,253 17,727,209 15,847,171 117,251,445 62,155,424
Net position-beginning of year (336,047,254) (236,523,018) 270,303,356 288,030,565 (65,743,898) 51,507,547
Net position-end of year $ (236,523,018) $ (190,214,765) $ 288,030,565 $ 303,877,736 $ 51,507,547 $ 113,662,971
Governmental Activities. The following chart depicts revenues of the governmental activities for the fiscal year:
Revenues - Governmental Activities
Fiscal Year Ending June 3 0, 2 02 5
Other Charges for services
15% 11
State shared revenues-
unrestricted
7%
Operating grants and
contributions
22%
Property taxes
22%
Capital grants and contributions
7%
Ilk
Income taxes
16%
21
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
In total, governmental activity revenues increased $19,911,894 from FY 2024 to FY 2025, with trends of the
major revenue categories as follows:
General revenue taxes comprised the largest portion of governmental revenues of$107,222,109, or 38.5%
of governmental activity revenue for fiscal year 2025,a 0.5%decrease of$546,619 from fiscal year 2024.
Property taxes revenue was 24.2%of governmental revenues,or$61,843,047,which is a decrease from the
prior year due to prior year adjustments in the prior year along with chargebacks in the current year.
Income taxes comprised 16.3%,or$45,379,062,of governmental activity revenue,the full amount of which
is revenue to the General Fund. This represents a$3,351,275,or 7.9%,increase from fiscal year 2024. Local
income tax rates are prescribed by State law and limited in Lansing's case to 1% of resident income and
0.5% of the income of persons working in the City but living outside of its corporate boundaries. Local
income tax rates are also limited to 0.5%for Lansing residents working subject to East Lansing's income tax.
Unrestricted grants and contributions (including state shared sales tax revenue) comprised 17.8%, or
$49,625,403, of revenues, a $1,899,445, or 3.9% increase from fiscal year 2024. Approximately 37.6% of
this category, $18,680,615, is attributed to State revenue sharing, an amount distributed to municipalities
by the State of Michigan by formula allocation of portions of the State sales tax.
Charges for services are program-specific revenues generated for services provided. Governmental activity
charges for services increased$5,781,017 from FY 2024 to FY 2025.
Governmental Activities. The following chart depicts expenses of the governmental activities for the fiscal year:
Expenses - Governmental Activities
Fiscal Year Ending June 30, 2025
Judicial
3%
Public safety
43% Health and welfare
1%
Public works
16%
Recreation and culture
4%
General government
18% Community and economic
development
11%
Interest on long-term debt
4%
22
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
Total expenses for governmental activities increased$72,327,901,45.5%,from FY 2024 to FY 2025,with trends
of the major expense categories as follows:
The largest component of governmental activities was public safety,accounting for 42.5%,or$98,437,224,
a 70% ($40,681,373) increase from FY 2024, largely resulting from a decrease in postemployment and
pension liabilities and the resulting impact to long-term liabilities.
General government comprises the second largest component of governmental activity expenses,at 17.7%,
or $40,902,819, a 88% ($19,087,960) increase from FY 2024, largely resulting from a decrease in
postemployment and pension liabilities and the resulting impact to long-term liabilities.
Public works comprises the next largest component of governmental activity expenses, at 15.6%, or
$36,107,434,a 4.5% ($1,546,558) increase from FY 2024,due to increased repair and maintenance related
needs as well as increases due to inflation.
Business-type Activities. Net position of the business-type activities increased by$15,847,171 from FY 2024
to$303,877,736. This increase was largely attributable to pension/OPEB adjustments.
Financial Analysis of the City's Funds
As the City completed the fiscal year, its governmental funds reported combined ending fund balances of
$271,458,723, a $24,204,188 decrease from fiscal year 2024. Of the $271,458,723 fiscal year 2025 combined
ending fund balance, $5,277,897 is unavailable to spend (i.e., amounts tied up in inventories, prepaids, and
endowments),$237,899,460 is legally restricted,and$7,258,015 is committed for designated projects,assigned
for subsequent year's expenditures of$67,000,leaving$20,956,351 unassigned.
The unassigned fund balance for the General Fund was $20,956,351,a decrease of$10,409,920 from FY 2024,
which is further described in the General Fund Budgetary Highlights section. Decrease is due to additional
pension&OPEB contributions made in the current year.
Public safety capital projects total fund balance decreased $28,580,162 from $172,703,932 to $144,123,770.
The decrease in the current year is due to proceeds from bonds received in previous years being expended.
Sewage Disposal System Fund
Net position increased$13,700,771 to$301,456,622 in FY 2025. Unrestricted net position increased$8,369,559,
from$44,107,507 to$52,477,066.
Municipal Parking System Fund
Net position decreased $64,978 to $3,494,244. Unrestricted net position increased $1,264,078, from
$10,872,589 to $12,136,667. The system saw a decrease in interest income net with a decrease in expenses
related to depreciation/amortization.
23
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
General Fund Budgetary Highlights
The FY 2025 General Fund budget was adopted as a balanced budget with an addition to fund balance. During
the course of the fiscal year,the General Fund revenues and other financing sources budget was amended from
$169,586,000 to$166,086,000.
General Fund reserves combined with the Budget Stabilization Fund (combined for financial statement
purposes) decreased $10,661,567 from FY 2024 to $29,990,279. Unassigned fund balance decreased
$10,406,920,or 33.2%from fiscal year 2024. The City benefited from more state and federal grants recognized
in the prior year compared to the current year.
The City's local economy is comprised of a diversified mix of businesses and industries including government,
health care,manufacturing,insurance,banking,and education.
Capital Assets. At the end of the fiscal year 2025, the City had invested $653,731,122, net of accumulated
depreciation/amortization, in a broad range of capital assets (see the table below). Additional information
regarding the City's capital assets can be found in Footnote 6 of the Notes to the Financial Statements section of
the ACFR.
Governmental Activities Business-type Activities Total
2024 2025 2024 2025 2024 2025
Land $ 27,743,613 $ 27,743,613 $ 12,369,507 $ 12,369,507 $ 40,113,120 $ 40,113,120
Land improvements 12,720,922 11,575,866 15,536,701 14,987,646 28,257,623 26,563,512
Buildings and improvements 27,499,574 26,368,638 47,357,071 43,497,265 74,856,645 69,865,903
Equipment 15,397,852 19,264,579 12,579,644 13,360,149 27,977,496 32,624,728
Flowage rights 29,263,744 27,081,162 - - 29,263,744 27,081,162
Right to use-building - 331,916 - 331,916
Right to use-SBITA 3,385,281 3,385,281 - - 3,385,281 3,385,281
Infrastructure 108,196,972 123,916,302 247,979,397 248,698,794 356,176,369 372,615,096
Construction in progress 29,866,714 59,116,466 12,695,894 22,033,938 42,562,608 81,150,404
Total $ 254,074,672 $ 298,783,823 $ 348,518,214 $ 354,947,299 $ 602,592,886 $ 653,731,122
Debt Administration. The City,along with the Lansing Building Authority(LBA),a blended component unit of
the City,is empowered by law to authorize,issue,and sell debt obligations. Limited tax and unlimited tax general
obligation bonds are backed by the full faith and credit of the City. The City also issues revenue-dedicated
bonded debt,whose payment for principal and interest comes solely out of funds that receive legally restricted
revenues. The Sewage Disposal fund has the City's only dedicated revenue bonds currently outstanding. LBA's
bonds financed the construction of parking structures,golf courses,and other related improvements. Revenues
derived from user fees from persons using parking and golf facilities fund the debt service requirements for
related improvements,but they are also backed by a limited tax pledge.
24
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
2024 2025
Governmental activities
General obligation bonds $ 230,753,750 $ 227,149,000
Deferred amounts
For issuance premiums 11,479,613 10,861,547
Installment purchase contracts 19,612,000 18,147,000
Loans 5,279,173 4,666,513
Leases - 336,782
SBITA 3,448,537 2,352,983
Compensated absences 11,075,958 13,414,111
Workers compensation 3,153,293 3,000,931
Total governmental activities 284,802,324 279,928,867
Business-type activities
General obligation bonds 108,093,995 111,524,480
Deferred amounts
For issuance discounts (19,566) (17,609)
For issuance premiums 1,802,067 1,631,550
Revenue bonds 6,300,000 4,725,000
Compensated absences 912,716 901,149
Total business-type activities 117,089,212 118,764,570
Total outstanding obligations $ 401,891,536 $ 398,693,437
More detailed information regarding these activities and funds can be found in Note 9 of the Notes to the
Financial Statements section of the ACFR.
Economic Condition and Outlook
The City has empowered ARPA funds to maintain government services, increase community support-without
sacrificing financial health. Many of the employers in the City continue to have staff work remotely or remote
hybrid,resulting in reduced business activity downtown impacting income tax and parking revenues.
Strengthening the City's economic base,maintaining General Fund reserves, and addressing long-term pension
and retiree healthcare obligations are top priorities. The City continues to work diligently with its employees
and unions to address the ongoing structural imbalance between projected revenues and long-term pension and
retiree health care costs. The City's financial picture will continuously be evaluated to address any budget
constraints for future fiscal years.
The City continues to experience significant economic development and national recognition of its economic
development efforts and accomplishments. For more information,please see the"Local Economy"section of the
Transmittal Letter.
25
CITY OF LANSING
MANAGEMENT'S DISCUSSION AND ANALYSIS
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a
general overview of the City's finances and to demonstrate the City's accountability for the money it receives.
Copies of this financial report, as well as other financial reports, are available on the City's website,
www.lansingmi.gov. If you have any questions about this report or need additional financial information,please
feel free to contact the Finance Department-8t"Floor, 124 W.Michigan Avenue,Lansing,Michigan.
26
BASIC FINANCIAL STATEMENTS
27
GOVERNMENT-WIDE FINANCIAL STATEMENTS
28
CITY OF LANSING
STATEMENT OF NET POSITION
JUNE 30, 2025
Primary Government
Governmental Business-type
Activities Activities Total Component Units
ASSETS
Current assets
Cash and cash equivalents $ 1,808,925 $ 5,099,590 $ 6,908,515 $ 30,103,470
Equity in pooled cash and investments 53,284,827 34,345,296 87,630,123 944,392
Cash and cash equivalents,restricted 199,322,546 2,614,049 201,936,595 3,509,573
Investments 2,026,085 - 2,026,085 -
Current portion of receivables,net 41,252,940 10,253,372 51,506,312 1,932,140
Due from other governmental units 35,656,926 33,269,071 68,925,997 -
Internal balances (3,543,795) 3,543,795 - -
Inventories 2,464,019 1,603,361 4,067,380 73,217
Prepaids 2,959,386 - 2,959,386 2,920
Total current assets 335,231,859 90,728,534 425,960,393 36,565,712
Noncurrent assets
Noncurrent portion of receivables,net 20,108,453 12,204,920 32,313,373 18,511
Capital assets not being depreciated/amortized 86,860,079 34,403,445 121,263,524 -
Capital assets,net of accumulated depreciation/amortization 211,923,744 320,543,854 532,467,598 6,701,925
Total noncurrent assets 318,892,276 367,152,219 686,044,495 6,720,436
TOTALASSETS 654,124,135 457,880,753 1,112,004,888 43,286,148
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 171,275 3,053,624 3,224,899 -
Deferred outflows of resources related to pensions 19,533,175 56,469 19,589,644
Deferred outflows of resources related to OPEB 6,740,883 - 6,740,883
TOTAL DEFERRED OUTFLOWS OF RESOURCES 26,445,333 3,110,093 29,555,426 -
LIABILITIES
Current liabilities
Accounts payable 22,261,410 3,791,329 26,052,739 10,387,352
Accrued payroll 2,541,049 172,012 2,713,061 -
Deposits payable - 95,713 95,713 -
Due to other governmental units 1,885,330 - 1,885,330 22,689
Claims incurred but not reported 1,741,866 1,741,866 -
Indemnity bonds 43,867 43,867 -
Other accrued liabilities 2,402,638 - 2,402,638 367,453
Accrued interest payable 876,368 655,686 1,532,054 500,598
Unearned revenue 20,924,238 - 20,924,238 543,370
Current portion of compensated absences 1,365,498 15,573 1,381,071 -
Current portion of long-term obligations 7,126,936 11,121,177 18,248,113 3,931,790
Total current liabilities 61,169,200 15,851,490 77,020,690 15,753,252
The accompanying notes are an integral part of the financial statements. CONTINUED
29
CITY OF LANSING
STATEMENT OF NET POSITION (concluded)
JUNE 30, 2025
Primary Government
Governmental Business-type
Activities Activities Total Component Units
LIABILITIES(concluded)
Noncurrent liabilities
Noncurrent portion of compensated absences $ 12,048,613 $ 885,576 $ 12,934,189 $ -
Noncurrent portion of long-term obligations 259,387,820 106,742,244 366,130,064 71,948,800
Accrued interest payable,net of current portion - - - 32,778
Net pension liability 336,025,755 23,949,175 359,974,930 -
Net other post-employment benefits liability 177,422,328 7,394,285 184,816,613
Total noncurrent liabilities 784,884,516 138,971,280 923,855,796 71,981,578
TOTAL LIABILITIES 846,053,716 154,822,770 1,000,876,486 87,734,830
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases 379,759 - 379,759 -
Deferred gain on refunding - - - 796,304
Deferred inflows of resources related to pensions 12,391,628 711,666 13,103,294 -
Deferred inflows of resources related to OPEB 11,959,130 1,578,674 13,537,804 -
TOTAL DEFERRED INFLOWS OF RESOURCES 24,730,517 2,290,340 27,020,857 796,304
NET POSITION(DEFICIT)
Net investment in capital assets 205,735,308 240,137,502 445,872,810 6,475,485
Restricted
Public safety 1,551,557 - 1,551,557 -
Public works 50,869,408 50,869,408
Community development - -
Building department 3,948,841 - 3,948,841
Debt service 11,928,215 2,614,049 14,542,264 -
Redevelopment projects - - - 2,135,541
Capital projects 15,515,526 15,515,526 80,000
Stabilization arrangements 7,792,610 7,792,610 -
Endowments(nonexpendable) 2,234,014 - 2,234,014
Unrestricted (489,790,244) 61,126,185 (428,664,059) (53,936,012)
TOTAL NET POSITION(DEFICIT) $ (190,214,765) $ 303,877,736 $ 113,662,971 $ (45,244,986)
The accompanying notes are an integral part of the financial statements.
30
CITY OF LANSING
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2025
Net(Expense)Revenue and Changes in Net Position
Program Revenues Primary Government
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Component Units
Primary government
Governmental activities
General government $ 40,902,819 $ 25,637,343 $ 53,713,489 $ 20,000,000 $ 58,448,013 $ - $ 58,448,013 $ -
judicial 7,770,640 - - - (7,770,640) - (7,770,640) -
Health and welfare 2,439,927 - - - (2,439,927) - (2,439,927)Public safety 98,437,224 2,468,492 414,548 - (95,554,184) - (95,554,184)Public works 36,107,434 1,792,020 6,140,620 324,049 (27,850,745) - (27,850,745) -
Recreation and culture 9,921,532 - 98,903 - (9,822,629) - (9,822,629) -
Community and economic development 26,405,304 - 174,340 - (26,230,964) - (26,230,964) -
Interest on long-term obligations 9,429,656 - (9,429,656) (9,429,656)
Total governmental activities 231,414,536 29,897,855 60,541,900 20,324,049 (120,650,732) (120,650,732)
Business-type activities
Sewage disposal system 31,760,216 43,171,746 - - - 11,411,530 11,411,530 -
Municipalparkingsystem 7,528,763 5,737,880 - - - (1,790,883) (1,790,883) -
Cemetery 1,373,345 512,978 - - - (860,367) (860,367) -
Golf 141,903 - - - - (141,903) (141,903) -
Garbage and rubbish collection 3,320,575 3,894,988 - - - 574,413 574,413 -
Recycling 3,148,267 4,896,765 1,748,498 1,748,498
Total business-type activities 47,273,069 58,214,357 10,941,288 10,941,288
Total primary government $ 278,687,605 $ 88,112,212 $ 60,541,900 $ 20,324,049 (120,650,732) 10,941,288 (109,709,444) -
Component units
Brownfield Redevelopment Authority $ 15,065,229 $ 15,000 $ 29,646 $ - - - - (15,020,583)
Tax Increment Finance Authority 1,231,462 - - - - - - (1,231,462)
Michigan Avenue Corridor Improvement Authority 8,102 - - - - - - (8,102)
South MLK Jr.Blvd.Corridor Improvement Authority 10,000 - - - - - - (10,000)
Public Media Authority 25,099 - 66 - - - - (25,033)
Lansing Entertainment&Public Facilities Authority 9,115,793 7,557,418 1,452,000 3,509,068 3,402,693
Total component units $ 25,455,685 $ 7,572,418 $ 1,481,712 $ 3,509,068 (12,892,487)
General revenues
Property taxes 61,843,047 - 61,843,047 20,680,610
Income taxes 45,379,062 - 45,379,062 -
Unrestricted state shared revenues 18,680,615 - 18,680,615 -
Grants and contributions not
restricted to specific programs 30,944,788 - 30,944,788 -
Investment earnings 9,885,180 3,853,815 13,738,995 273,394
Miscellaneous 1,250,019 28,342 1,278,361 952,097
Transfers (1,023,726) 1,023,726
Total general revenues and transfers 166,958,985 4,905,883 171,864,868 21,906,101
Change in net position 46,308,253 15,847,171 62,155,424 9,013,614
Net position(deficit),beginning of year,as previously reported (236,523,018) 288,030,565 51,507,547 (54,497,630)
Adjustment to beginning net position(deficit) 239,030
Net position(deficit),beginning of year,as restated (236,523,018) 288,030,565 51,507,547 (54,258,600)
Net position(deficit),end of year $ (19Q214,765) _L 303,877,736 $ 113,662,971 _L(45,244,986)
The accompanying notes are an integral part of the financial statements.
31
FUND FINANCIAL STATEMENTS
32
CITY OF LANSING
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Major Fund
General Fund- This is the general operating fund of the City. It is used to account for and report all financial
resources not accounted for and reported in another fund.
State and Federal Grants Fund - This Special Revenue fund accounts for all revenues received from
intergovernmental grants and various contributions. These revenues are used for projects as detailed in
individual grant applications.
Public Safety Capital Projects Fund-This fund accounts for capital project and debt service activity for the Public
Safety.
Nonmajor Funds
Nonmajor governmental funds are presented,by fund type,within the Combining and Individual Fund Financial
Statements and Schedules section of this report as noted in the table of contents.
33
CITY OF LANSING
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
State and Federal Nonmajor
Grants-Special Public Safety Governmental
General Revenue Capital Projects Funds Total
ASSETS
Cash and cash equivalents $ 637,173 $ $ - $ 1,171,752 $ 1,808,925
Cash and cash equivalents-restricted 3,203,904 149,752,156 46,366,486 199,322,546
Equity in pooled cash and investments - - 45,890,067 45,890,067
Investments - 2,026,085 2,026,085
Receivables
Accounts,net 37,445,650 5,753,709 43,199,359
Taxes receivable,net 1,982,866 - 1,982,866
Special assessments - 9,792,994 9,792,994
Loans - 26,238 1,185,000 1,211,238
Leases 385,193 - - 385,193
Accrued interest - 2,527,946 2,527,946
Due from other funds 2,459,727 - - 2,459,727
Due from other governmental units 6,279,298 23,017,183 6,360,445 35,656,926
Inventories - - - 1,858,900 1,858,900
Prepaids 1,174,318 - 10,665 - 1,184,983
TOTAL ASSETS $ 53,568,129 $ 23,043,421 $ 149,762,821 $ 122,933,384 $ 349,307,755
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts payable $ 9,881,785 $ 631,826 $ 5,639,051 $ 4,051,433 $ 20,204,095
Accrued payroll 2,253,188 20,495 - 71,494 2,345,177
Due to other governmental units 1,635,330 - 250,000 1,885,330
Indemnity bonds - 43,867 43,867
Other liabilities 2,362,720 - 39,918 2,402,638
Due to other funds - 2,034,865 424,862 2,459,727
Unearned revenue 170,143 20,319,549 434,546 20,924,238
TOTAL LIABILITIES 16,303,166 23,006,735 5,639,051 5,316,120 50,265,072
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-fees 6,890,434 - - - 6,890,434
Unavailable revenue-leases 379,759 379,759
Unavailable revenue-contracts 4,491 - - 4,491
Unavailable revenue-loans and accrued interest receivable - 36,686 10,479,596 10,516,282
Unavailable revenue-special assessments 9,792,994 9,792,994
TOTAL DEFERRED INFLOWS OF RESOURCES 7,274,684 36,686 20,272,590 27,583,960
FUND BALANCES
Nonspendable 1,174,318 - 10,665 4,092,914 5,277,897
Restricted 7,792,610 144,113,105 85,993,745 237,899,460
Committed - - 7,258,015 7,258,015
Assigned 67,000 - 67,000
Unassigned 20,956,351 - 20,956,351
TOTAL FUND BALANCES 29,990,279 144,123,770 97,344,674 271,458,723
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES,AND FUND BALANCES $ 53,568,129 $ 23,043,421 $ 149,762,821 $ 122,933,384 $ 349,307,755
The accompanying notes are an integral part of the financial statements.
34
CITY OF LANSING
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
Fund balances-total governmental funds $ 271,458,723
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported as assets in the governmental funds.
The cost of capital assets is $ 729,846,068
Accumulated depreciation/amortization is (431,062,245)
Capital assets accounted for in the internal service funds,net (15,694,428)
Capital assets,net 283,089,395
Some assets are not current financial resources and therefore are not reported in the Governmental
Funds Balance Sheet.
Deferred ambulance fees receivable 3,716,981
Deferred nuisance fees receivable 2,145,706
Deferred loans receivable 5,853,970
Deferred long-term interest receivable 2,527,946
Deferred long-term special assessments receivable 9,792,994
Deferred contract receivable 1,032,238
Deferred opioid settlement 2,134,366
Deferred outflows of resources related to pensions 19,533,175
Deferred outflows of resources related to OPEB 6,740,883
Deferred inflows of resources related to pensions (12,391,628)
Deferred inflows of resources related to OPEB (11,959,130)
29,127,501
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The assets and liabilities of certain internal service funds are included in the governmental
activities in the government-wide statement of net position.
Net position of governmental activities accounted for
in governmental activities internal service funds 16,026,631
Long-term liabilities are not due and payable in the current period and therefore are not reported in
the governmental funds balance sheet.Long-term liabilities at year-end consist of:
Bonds and loans payable (260,389,329)
Deferred charges on refunding 171,275
Compensated absences (12,376,280)
Workers compensation (3,000,931)
Accrued interest payable (873,667)
Net pension liability (336,025,755)
Net other post-employment benefits liability (177,422,328)
(789,917,015)
Net position of governmental activities $ (190,214,765)
The accompanying notes are an integral part of the financial statements.
35
CITY OF LANSING
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2025
State and Federal Nonmajor
Grants-Special Public Safety Governmental
General Revenue Capital Projects Funds Total
REVENUES
Property taxes and special assessments $ 54,828,119 $ $ $ 12,545,668 $ 67,373,787
Income taxes 45,547,274 - 45,547,274
Licenses and permits 1,534,016 - 1,534,016
Intergovernmental 25,380,715 26,843,269 50,179,679 102,403,663
Charges for services 10,935,424 - 5,997,155 16,932,579
Fines and forfeits 1,461,644 - 76,483 1,538,127
Interest and rents 1,446,495 1,219,309 5,038,954 3,236,564 10,941,322
Other 28,666,766 9,761 - 569,166 29,245,693
TOTAL REVENUES 169,800,453 28,072,339 5,038,954 72,604,715 275,516,461
EXPENDITURES
Current
General government 37,969,512 882,274 - 2,648,869 41,500,655
Public safety 97,978,639 1,694,801 5,765,704 105,439,144
Public works 14,383,612 5,634,406 - 20,018,018
Judicial 9,585,357 - 9,585,357
Health and welfare 2,373,153 372,264 - 2,745,417
Highways and streets - - 11,063,994 11,063,994
Recreation and culture 9,997,814 38,146 - 10,035,960
Community and economic development 10,513,027 15,375,607 3,176,712 29,065,346
Debt service
Principal 1,465,000 - 4,133,115 5,598,115
Interest and fiscal charges 389,980 - 10,096,843 10,486,823
Capital outlay - - 33,619,116 20,212,502 53,831,618
TOTAL EXPENDITURES 184,656,094 23,997,498 33,619,116 57,097,739 299,370,447
EXCESS OF REVENUES OVER
EXPENDITURES (14,855,641) 4,074,841 (28,580,162) 15,506,976 (23,853,986)
OTHER FINANCING SOURCES(USES)
Lease related - - 385,798 385,798
Transfers in 5,298,206 186,132 5,586,525 11,070,863
Transfers out (1,104,132) (4,260,973) (6,441,758) (11,806,863)
TOTAL OTHER FINANCING
SOURCES(USES) 4,194,074 (4,074,841) (469,435) (350,202)
NET CHANGE IN FUND BALANCES (10,661,567) (28,580,162) 15,037,541 (24,204,188)
Fund balances,beginning of year 40,651,846 172,703,932 82,307,133 295,662,911
Fund balances,end of year $ 29,990,279 $ $ 144,123,770 $ 97,344,674 $ 271,458,723
The accompanying notes are an integral part of the financial statements.
36
CITY OF LANSING
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2025
Net change in fund balances-total governmental funds $ (24,204,188)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However,in the statement of activities,the
cost of these assets is allocated over their estimated useful lives and reported as depreciation/
amortization expense.This is the amount by which capital outlays exceeded depreciation/amortization
expense in the current period.
Capital outlay $ 56,850,194
Depreciation/amortization expense (12,569,937)
Excess of capital outlay over depreciation/amortization expense 44,280,257
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds.
Change in deferred ambulance fees receivable 1,859,076
Change in deferred nuisance fees receivable 798,416
Change in deferred loans receivable (1,039)
Change in deferred opioid settlement (135,873)
Change in deferred contract receivable (98,903)
Change in deferred long-term interest receivable 59,249
Change in deferred special assessments receivable 549,045
3,029,971
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The net revenue of certain individual funds are included in the governmental activities.
Change in net position of governmental activities internal service funds (5,257,811)
Repayment of long-term debt and borrowing of long-term debt is reported as expenditures and other
financing sources in governmental funds, but the repayment reduces long-term liabilities and the
borrowings increase long-term liabilities in the statement of net position. In the current year, these
amounts consist of:
Amortization of premium on bond issuance 618,066
Deferred charges on refunding (19,202)
Proceeds from leases (385,798)
Debt principal retirement 5,598,115
5,811,181
Certain expenditures are reported in governmental funds that reduce long-term liabilities for purpose of
the statement of net position.
Change in estimated workers compensation 152,362
Some items reported in the statement of activities do not require the use of current financial resources and
therefore are not reported as expenditures in governmental funds. These activities consist of:
Decrease in net pension liability 15,037,259
Decrease in net OPEB liability 21,076,393
(Decrease)in deferred outflows of resources related to pensions (5,230,874)
Increase in deferred outflows of resources related to OPEB 5,712,211
(Increase)in deferred inflows of resources related to pensions (11,824,858)
(Increase)in deferred inflows of resources related to OPEB (426,585)
Decrease in accrued interest payable 446,303
(Increase)in compensated absences (2,293,368)
22,496,481
Change in net position of governmental activities $ 46,308,253
The accompanying notes are an integral part of the financial statements.
37
CITY OF LANSING
PROPRIETARY FUND FINANCIAL STATEMENTS
Major Funds
Sewage Disposal System Fund-This fund accounts for the activities of sewage disposal services to the residents
of the City.
Municipal Parking System Fund-This fund accounts for the operation of City-owned parking facilities.
Nonmajor Enterprise Funds and Internal Service Funds
Nonmajor enterprise funds and internal service funds are presented, by fund type, within the Combining and
Individual Fund Financial Statements and Schedules section of this report as noted in the table of contents.
38
CITY OF LANSING
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
ASSETS
Current assets
Cash and cash equivalents $ - $ 5,099,390 $ 200 $ 5,099,590 $
Cash and cash equivalents-restricted 2,614,049 - - 2,614,049 -
Equity in pooled cash and investments 24,860,196 2,614,229 6,870,871 34,345,296 7,394,760
Receivables,net
Customers 7,323,778 393,412 479,187 8,196,377 2,261,797
Interest 28,686 134,666 - 163,352 -
Contracts 651,133 1,242,510 1,893,643
Due from other funds 3,543,795 - 3,543,795
Due from other governmental units 33,269,071 - 33,269,071 -
Inventories 1,549,989 53,372 1,603,361 605,119
Prepaids - 1,774,403
Total current assets 73,840,697 9,484,207 7,403,630 90,728,534 12,036,079
Noncurrent assets
Contract receivable,net of current portion 2,066,498 10,138,422 - 12,204,920 -
Capital assets not being depreciated/amortized 22,454,687 11,545,371 403,387 34,403,445 92,892
Capital assets,net of accumulated depreciation/amortization 315,366,369 3,166,454 2,011,031 320,543,854 15,601,536
Total noncurrent assets 339,887,554 24,850,247 2,414,418 367,152,219 15,694,428
TOTAL ASSETS 413,728,251 34,334,454 9,818,048 457,880,753 27,730,507
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refunding 467,872 2,585,752 - 3,053,624 -
Deferred outflows of resources related to pensions 30,063 9,670 16,736 56,469
TOTAL DEFERRED OUTFLOWS OF RESOURCES 497,935 2,595,422 16,736 3,110,093
LIABILITIES
Current liabilities
Accounts payable 2,994,327 68,197 728,805 3,791,329 2,057,315
Accrued payroll 119,532 47,267 5,213 172,012 195,872
Deposit payable - 95,713 - 95,713 -
Claims incurred but not reported - - - 1,741,866
Accrued interest payable 431,027 224,659 655,686 2,701
Due to other funds - - - - 3,543,795
Current portion of compensated absences 5,754 999 8,820 15,573 4,677
Current portion of long-term obligations 10,546,177 575,000 - 11,121,177 923,260
Total current liabilities 14,096,817 1,011,835 742,838 15,851,490 8,469,486
Noncurrent liabilities
Compensated absences,net of current portion 536,747 152,424 196,405 885,576 1,033,154
Bonds and notes payable,net of current portion 80,230,130 26,512,114 - 106,742,244 2,201,236
Net pension liability 12,749,996 4,100,919 7,098,260 23,949,175 -
Net other post-employment benefits liability 3,936,549 1,266,155 2,191,581 7,394,285
Total noncurrent liabilities 97,453,422 32,031,612 9,486,246 138,971,280 3,234,390
TOTAL LIABILITIES 111,550,239 33,043,447 10,229,084 154,822,770 11,703,876
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 378,875 121,862 210,929 711,666 -
Deferred inflows of resources related to OPEB 840,450 270,323 467,901 1,578,674
TOTAL DEFERRED INFLOWS OF RESOURCES 1,219,325 392,185 678,B30 2,290,340
NET POSITION(DEFICIT)
Net investment in capital assets 246,365,507 (8,642,423) 2,414,418 240,137,502 12,569,932
Restricted for bond reserves 2,614,049 - - 2,614,049 -
Unrestricted 52,477,066 12,136,667 (3,487,548) 61,126,185 3,456,699
TOTAL NET POSITION(DEFICIT) $ 301,456,622 $ 3,494,244 $ (1,073,130) $ 303,877,736 $ 16,026,631
The accompanying notes are an integral part of the financial statements.
39
CITY OF LANSING
STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2025
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
OPERATING REVENUES
Charges for services $ 43,171,746 $ 5,737,880 $ 9,304,731 $ 58,214,357 $ 120,968,896
Other - 28,342 - 28,342 282,835
TOTAL OPERATING REVENUES 43,171,746 5,766,222 9,304,731 58,242,699 121,251,731
OPERATING EXPENSES
Personnel services 5,971,787 1,800,252 3,758,781 11,530,820 14,535,241
Purchase of goods and services 9,259,257 1,653,666 4,140,874 15,053,797 108,444,724
Other services and charges 925,339 - - 925,339 -
Depreciation/amortization 13,505,389 1,871,417 84,435 15,461,241 3,435,905
TOTAL OPERATING EXPENSES 29,661,772 5,325,335 7,984,090 42,971,197 126,415,870
OPERATING INCOME(LOSS) 13,509,974 440,887 1,320,641 15,271,502 (5,164,139)
NONOPERATING REVENUES(EXPENSES)
Interest income 2,289,241 1,409,837 154,737 3,853,815 48,196
Gain on sale of capital assets - - - - 181,242
Interest expense and fees (2,098,444) (2,203,428) - (4,301,872) (35,384)
TOTAL NONOPERATING
REVENUES(EXPENSES) 190,797 (793,591) 154,737 (448,057) 194,054
NET INCOME(LOSS)
BEFORE TRANSFERS 13,700,771 (352,704) 1,475,378 14,823,445 (4,970,085)
TRANSFERS IN - 287,726 736,000 1,023,726
TRANSFERS OUT - - - (287,726)
TOTAL TRANSFERS - 287,726 736,000 1,023,726 (287,726)
CHANGE IN NET POSITION 13,700,771 (64,978) 2,211,378 15,847,171 (5,257,811)
Net position(deficit),beginning of year 287,755,851 3,559,222 (3,284,508) 288,030,565 21,284,442
Net position(deficit),end of year $ 301,456,622 $ 3,494,244 $ (1,073,130) $ 303,877,736 $ 16,026,631
The accompanying notes are an integral part of the financial statements.
40
CITY OF LANSING
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2025
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 43,431,646 $ 5,783,781 $ 9,272,965 $ 58,488,392 $
Cash received(paid)from interfund services - - - - 119,472,896
Cash received(paid)for intergovernmental services (5,276,976) (1,679,960) - (6,956,936) -
Cash payments for goods and services (12,728,152) (1,659,165) (4,251,794) (18,639,111) (109,275,402)
Cash payments to employees (8,750,847) (2,502,376) (4,667,429) (15,920,652) (14,315,988)
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES 16,675,671 (57,720) 353,742 16,971,693 (4,118,494)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 736,000 736,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (21,310,329) (579,997) (21,890,326) (3,867,881)
Proceeds from sale of capital assets 184,324
Principal paid on long-term obligations (10,895,438) (725,000) (11,620,438) (1,228,865)
Interest and costs paid on long-term obligations (1,950,947) (2,141,640) (4,092,587) (35,850)
Transfers in/(out) - 287,726 287,726 (287,726)
Proceeds from debt issuance 13,475,923 - 13,475,923
Payments received on contract receivable (651,133) 377,301 (273,832)
NET CASH(PROVIDED)BY CAPITAL AND
RELATED FINANCING ACTIVITIES (21,331,924) (2,201,613) (579,997) (24,113,534) (5,235,998)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 2,289,241 1,407,105 154,737 3,851,083 48,196
NET INCREASE(DECREASE)IN CASH
AND CASH EQUIVALENTS (2,367,012) (852,228) 664,482 (2,554,758) (9,306,296)
Cash and cash equivalents,beginning of year 29,841,257 8,565,847 6,206,589 44,613,693 16,701,056
Cash and cash equivalents,end ofyear $ 27,474,245 $ 7,713,619 $ 6,871,071 $ 42,058,935 $ 7,394,760
Reconciliation to Statement of Net Position
Cash and cash equivalents $ - $ 5,099,390 $ 200 $ 5,099,590 $ -
Cash and cash equivalents-restricted 2,614,049 - 2,614,049 -
Equity in pooled cash and investments 24,860,196 2,614,229 6,870,871 34,345,296 7,394,760
Total cash and cash equivalents,end ofyear $ 27,474,245 $ 7,713,619 $ 6,871,071 $ 42,058,935 $ 7,394,760
The accompanying notes are an integral part of the financial statements. CONTINUED
41
CITY OF LANSING
STATEMENT OF CASH FLOWS (concluded)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2025
Governmental
Business-type Activities-Enterprise Funds Activities
Sewage Municipal Nonmajor Internal
Disposal Parking Enterprise Service
System System Funds Total Funds
Reconciliation of operating income(loss)to net cash
provided(used)by operating activities
Operating income(loss) $ 13,509,974 $ 440,887 $ 1,320,641 $ 15,271,502 $ (5,164,139)
Adjustments to reconcile operating income(loss)to net
cash provided(used)by operating activities
Depreciation/amortization 13,505,389 1,871,417 84,435 15,461,241 3,435,905
(Increase)decrease in:
Accounts receivable 259,900 17,559 (31,766) 245,693 (1,778,915)
Due from other governmental units (5,276,976) - - (5,276,976) -
Inventories (70,804) (851) (71,655) 54,846
Prepaids - - - (274,403)
Deferred outflows of resources related to pensions 535,838 166,972 280,161 982,971
Deferred outflows of resources related to OPEB 5,808 1,813 3,047 10,668
Increase(decrease)in:
Accounts payable (2,472,752) (13,811) (110,069) (2,596,632) (611,041)
Due to other funds - - - -
Accrued liabilities 53,446 15,192 3,717 72,355 (66,808)
Due to other governmental units - (1,679,960) - (1,679,960)
Deposits payable 8,312 8,312 -
Compensated absences (4,770) (4,459) (2,338) (11,567) 44,785
Claims incurred but not reported 241,276
Net pension liability (1,934,392) (482,696) (605,797) (3,022,885) -
Net other post-employment benefits liability (1,911,145) (559,156) (876,369) (3,346,670)
Deferred inflows of resources related to pensions 308,984 100,046 174,261 583,291
Deferred inflows of resources related to OPEB 167,171 60,164 114,670 342,005 -
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES $ 16,675,671 $ (57,720) $ 353,742 $ 16,971,693 $ (4,118,494)
The accompanying notes are an integral part of the financial statements.
42
CITY OF LANSING
FIDUCIARY FUND FINANCIAL STATEMENTS
Pension and Other Postemployment Benefit Trust Funds
Employee pension and other postemployment benefit trust funds accept payments made by the City,invest fund
resources,calculate,and pay pensions to retirees(or beneficiaries),and account for postemployment healthcare
coverage.
Custodial Funds
54-A District Court accounts for resources held in a trustee or agent capacity. Current tax collections fund
accounts for collections of property taxes and remittances of them to the appropriate authorities.
The accompanying notes are an integral part of the financial statements.
43
CITY OF LANSING
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30,2025
Pension and
Other Post-
Employment Custodial
Benefits Trust Funds
ASSETS
Cash and cash equivalents $ 24,431,885 $ -
Equity in pooled cash and investments - 184,739
Investments
Mutual funds 505,069,167 -
Domestic equities 157,304,111 -
International equities 2,834,688 -
Emerging market equities 33,981,748 -
Money market funds 9,950,122 -
Receivables
Interest and dividends 195,573 -
TOTAL ASSETS 733,767,294 184,739
LIABILITIES
Accounts payable 578,366 -
Due to other governmental units 33,269,071 -
Due to individuals and agencies - 184,739
TOTAL LIABILITIES 33,847,437 184,739
NET POSITION RESTRICTED FOR:
Pension benefits 513,394,955 -
Other postemployment benefits 186,524,902 -
TOTAL NET POSITION $ 699,919,857 $ -
The accompanying notes are an integral part of the financial statements.
44
CITY OF LANSING
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30,2025
Other Post-
Employment
Benefits Trust Custodial
Funds Funds
ADDITIONS TO NET POSITION
Investment income
Change in fair value of investments $ 71,687,515 $ -
Interest income 1,189,220 -
Investment expense (1,373,858) -
Net investment income 71,502,877 -
Contributions
Employer 78,808,491 -
Nonemployer 2,361,715 -
Plan members 5,476,894 -
Total contributions 86,647,100 -
Other additions
Collections from or on behalf of individuals - 1,076,594
Collections of taxes for other governments - 161,871,591
Total other additions - 162,948,185
TOTAL ADDITIONS 158,149,977 162,948,185
DEDUCTIONS FROM NET POSITION
Payments to or on behalf of individuals - 1,076,594
Payment of taxes collected for other governments - 161,871,591
Participant benefits 84,757,860 -
Administrative expenses 3,438,725 -
TOTAL DEDUCTIONS 88,196,585 162,948,185
CHANGE IN NET POSITION 69,953,392 -
Net position,beginning of year 629,966,465 -
Net position,end of year $ 699,919,857 $ -
The accompanying notes are an integral part of the financial statements.
45
COMPONENT UNITS
46
CITY OF LANSING
DISCRETELY PRESENTED COMPONENT UNITS
Discretely presented component units are entities that are legally separate from the City but for which the City
is financially accountable, or their relationship with the City is such that exclusion would cause the City's
financial statements to be misleading or incomplete. The City has seven discretely presented component units:
Brownfield Redevelopment Authority
Tax Increment Finance Authority
Saginaw Street Corridor Improvement Authority
Michigan Avenue Corridor Improvement Authority
South MLK Jr.Blvd.Corridor Improvement Authority
Public Media Authority
Lansing Entertainment and Public Facilities Authority
47
CITY OF LANSING
COMBINING STATEMENT OF NET POSITION
DISCRETELY PRESENTED COMPONENT UNITS
JUNE 30, 2025
Lansing
Saginaw Street Michigan Avenue South MLK Jr. Entertainment
Brownfield Tax Increment Corridor Corridor Blvd.Corridor and Public
Redevelopment Finance Improvement Improvement Improvement Public Media Facilities
Authority Authority Authority Authority Authority Authority Authority Total
ASSETS
Current assets
Cash and cash equivalents $ 9,286,230 $ 18,752,867 $ 12,830 $ 77,610 $ 1 $ 140 $ 1,973,792 $ 30,103,470
Equity in pooled cash and investments - - 313,084 375,094 256,214 - - 944,392
Cash and cash equivalents-restricted 1,909,530 295,421 - - - 1,304,622 3,509,573
Receivables,net 45,410 - 1,886,730 1,932,140
Inventories - 73,217 73,217
Prepaids 2,920 2,920
Total current assets 11,241,170 19,048,288 325,914 452,704 256,215 140 5,241,281 36,565,712
Noncurrent assets
Noncurrent portion of receivable,net 18,511 - - - - - - 18,511
Capital assets,net of accumulated depreciation 6,701,925 6,701,925
Total noncurrent assets 18,511 6,701,925 6,720,436
TOTAL ASSETS 11,259,681 19,048,288 325,914 452,704 256,215 140 11,943,206 43,286,148
LIABILITIES
Current liabilities
Accounts payable 9,239,015 344,525 - - - 803,812 10,387,352
Accrued liabilities - - 2,484 364,969 367,453
Current portion of accrued interest payable 400,045 100,553 - - 500,598
Due to other governmental units - - 22,689 - 22,689
Unearned revenue - - 543,370 543,370
Current portion of long-term obligations 1,028,839 2,857,510 45,441 3,931,790
Total current liabilities 10,667,899 3,302,588 25,173 1,757,592 15,753,252
Noncurrent liabilities
Noncurrent portion of long-term obligations 35,994,379 35,773,422 - 180,999 71,948,800
Accrued interest payable,net of current portion 32,778 32,778
Total noncurrent liabilities 35,994,379 35,806,200 180,999 71,981,578
TOTAL LIABILITIES 46,662,278 39,108,788 25,173 1,938,591 87,734,830
DEFERRED INFLOW OF RESOURCES
Deferred gain on refunding 796,304 796,304
NET POSITION(DEFICIT)
Net investment in capital assets - 6,475,485 6,475,485
Restricted for capital projects - - 80,000 80,000
Restricted for redevelopment projects 1,973,451 162,090 2,135,541
Unrestricted (37,376,048) (21,018,894) 325,914 452,704 256,215 (25,033) 3,449,130 (53,936,012)
TOTAL NET POSITION(DEFICIT) $ (35,402,597) $ (20,856,804] $ 325,914 $ 452,704 $ 256,215 $ (25,033] $ 10,004,615 $ (45,244,986)
The accompanying notes are an integral part of the financial statements.
48
CITY OF LANSING
COMBINING STATEMENT OF ACTIVITIES
DISCRETELY PRESENTED COMPONENT UNITS
YEAR ENDED JUNE 30,2025
Lansing
Saginaw Street Michigan Avenue South MLK Jr. Entertainment
Brownfield Tax Increment Corridor Corridor Blvd.Corridor and Public
Redevelopment Finance Improvement Improvement Improvement Public Media Facilities
Authority Authority Authority Authority Authority Authority Authority Total
EXPENSES
Community development $ 15,065,229 $ 1,231,462 $ $ 8,102 $ 10,000 $ - $ - $ 16,314,793
Recreation and culture 25,099 9,115,793 9,140,892
TOTAL EXPENSES 15,065,229 1,231,462 8,102 10,000 25,099 9,11S,793 25,455,68S
PROGRAM REVENUES
Charges for services 15,000 - - - - 7,557,418 7,572,418
Operating grants and contributions 29,646 66 1,452,000 1,481,712
Capital grants and contributions 3,509,068 3,509,068
TOTAL PROGRAM REVENUES 44,646 66 12,518,486 12,563,198
NET PROGRAM(EXPENSE)REVENUE (15,020,583) (1,231,462) (8,102) (10,000) (25,033) 3,402,693 (12,892,487)
GENERALREVENUES
Property taxes 13,372,054 6,867,884 181,666 114,558 144,448 - 20,680,610
Unrestricted investment earnings 269,184 4,210 - - - - 273,394
Other - 952,097 952,097
TOTAL GENERAL REVENUES 13,641,238 6,872,094 181,666 114,558 144,448 952,097 21,906,101
CHANGE IN NET POSITION (1,379,345) 5,640,632 181,666 106,456 134,448 (25,033) 4,354,790 9,013,614
Net position(deficit),beginning of year,as previously reported (34,262,282) (26,497,436) 144,248 346,248 121,767 5,649,825 (54,497,630)
Adjustment to beginning net position(deficit) 239,030 - - - - 239,030
Net position(deficit),beginning of year,as restated (34,023,252) (26,497,436) 144,248 346,248 121,767 5,649,825 (54,258,600)
Net position(deficit),end of year $ (35,402,597) $ (2Q,856,804) $ 325,914 $ 452,704 $ 256,215 $ (25,033) $ 10,004,615 $ (45,244,986)
The accompanying notes are an integral part of the financial statements.
49
NOTES TO FINANCIAL STATEMENTS
so
CITY OF LANSING
INDEX-NOTES TO FINANCIAL STATEMENTS
Page
Note 1 -Summary of Significant Accounting Policies..................................................................................................52
Note2 -Budgetary Information...............................................................................................................................................65
Note3 -Deficit Fund Equity........................................................................................................................................................65
Note 4-Deposits and Investments.........................................................................................................................................66
Note5 -Receivables........................................................................................................................................................................74
Note6-Capital Assets....................................................................................................................................................................74
Note 7 -Accounts Payable and Accrued Liabilities.......................................................................................................76
Note 8-Interfund Receivables,Payables,and Transfers..........................................................................................76
Note9 -Long-term Obligations.................................................................................................................................................77
Note 10 -Fund Balances- Governmental Funds.............................................................................................................82
Note 11 -Net Investment in Capital Assets........................................................................................................................82
Note 12 -Segment Information-Enterprise Funds......................................................................................................83
Note13 -Risk Management........................................................................................................................................................83
Note14-Property Taxes..............................................................................................................................................................84
Note15 -Contingent Liabilities................................................................................................................................................84
Note16-Pension Plans.................................................................................................................................................................84
Note 17 -Other Postemployment Benefits........................................................................................................................97
Note18-Tax Abatements...........................................................................................................................................................114
Note 19 -Assets Held by Foundation....................................................................................................................................115
Note20 -Lease Receivable.........................................................................................................................................................115
Note 21 -Changes in Accounting Principles.....................................................................................................................116
Note 22 -Adjustment to Beginning Net Position...........................................................................................................116
Note 23 -Upcoming Accounting Pronouncements.......................................................................................................117
51
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lansing(the"City")was incorporated in 1859. In 1909,the City came under the provisions of Act 279,
P.A. 1909, as amended ("Home Rule City Act"). The City operates under a strong Mayor form of government in
which the Mayor is responsible for implementation and administration of City policy as established by City Council.
The accounting and reporting policies of the City conform in all material respects to generally accepted
accounting principles (GAAP) as applicable to governments. The Governmental Accounting Standards Board
(GASB)is the standard setting body for establishing governmental accounting and financial reporting principles,
which are primarily set forth in the GASB's Codification of Governmental Accounting and Financial Reporting
Standards (GASB Codification). Following is a summary of the significant policies:
Reporting Entity
As required by generally accepted accounting principles,these financial statements present the City and its
component units, entities for which the City is considered to be financially accountable. The financial data
of the component units are included in the City's reporting entity because of the significance of their
operational or financial relationships with the City.
Blended Component Unit
A blended component unit is a legally separate entity from the City but is so intertwined with the City that it
is,in substance,the same as the City. It is reported as part of the City and its financial data is combined with
data of the appropriate funds. The City has one blended component unit,the Building Authority with a fiscal
June 30 year-end. This component unit provides services primarily to benefit the City. The blended unit is
described as follows:
The City of Lansing Building Authority (the "Authority") was established by the City under Act 31,
Michigan Public Acts of 1948. The Mayor, with the advice and consent of City Council, appoints the
Authority's governing body and designates management. The Authority uses the proceeds of its tax-
exempt bonds to finance the construction or acquisition of capital assets for the City only. The bonds
are secured by lease agreements with the City and will be retired through lease payments from the City.
The financial activity, assets, liabilities, and equity of the Authority are incorporated within the City's
Municipal Parking System enterprise fund.
Discretely Presented Component Units
Discretely presented component units are entities that are legally separate from the City but for which the City
is financially accountable, or their relationship with the City is such that exclusion would cause the City's
financial statements to be misleading or incomplete. The discretely presented component units are as follows:
The Lansing Brownfield RedevelopmentAuthority("LBRA")was established by the City on August 17,1997,
under the authority contained in Act 381,Michigan Public Acts of 1996(the"Act"). The Act authorizes the
City to establish and to designate the boundaries of a Brownfield redevelopment zone. The Brownfield
Redevelopment Authority is appointed by City Council to preside over such a zone,and it is authorized to
promote the revitalization of environmentally distressed areas within the City of Lansing. The Act allows
the LBRA to participate in a broad range of improvement activities intended to encourage the reuse of
industrial and commercial property by offering economic incentives for redevelopment to prevent
property value deterioration. Tax increment financing plans must be approved by the City.
52
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Discretely Presented Component Units (continuedl
Tax increment financing permits the LBRA to capture tax revenues which are attributable to increases
in the value of real and personal property located within an approved project area. Current activities of
the LBRA include collections of property tax revenues on multiple projects within the project area.
The Tax Increment Finance Authority("TIFA")was established by the City under the authority contained
in Act 450, Michigan Public Acts of 1981 ("Act 450"). Act 450 authorizes the City to designate specific
districts within its corporate limits as TIFA districts. The TIFA presides over such districts,formulating
plans for public improvements, economic development, neighborhood revitalization, and historic
preservation within the districts. Act 450 allows the TIFA to participate in a broad range of
improvement activities intended to contribute to economic growth and prevent property value
deterioration. The TIFA's governing body is appointed by the Mayor with the advice and consent of the
City Council. Bond issuances,to fund the above activities,are approved by the City Council and the legal
liability for the debt remains with the City.
The Saginaw Street Corridor Improvement Authority ("SSCIA") was created in 2009 with the goals to
correct and prevent deterioration in the business district,redevelop the city's commercial corridors,and
promote economic growth. The Authority followed several key principles that were used in the creation
of the plan and are supported by the city's master plan to transform the visually unappealing character
of the corridor,to encourage pedestrians and to market the quality of the adjacent neighborhoods. In
2019, the development and tax increment financing plans were approved and allow the Authority to
begin its first steps in executing the vision set forth by the corridor's residents, businesses, and other
stakeholders. The Authority's governing body is appointed by the Mayor with the advice and consent of
the City Council. The Authority relies on tax increment revenues as available, along with grants and
other revenues. If there are bond issuances to fund the above activities,they are approved by the City
Council and the legal liability for the debt remains with the City.
The Michigan Avenue Corridor Improvement Authority("MACIA") was created in 2009 with the goals to
correct and prevent deterioration in the business district,redevelop the city's commercial corridors,and
promote economic growth. The Development and Tax Increment Financing plans arrange projects into
three categories: public infrastructure, current and prevent deterioration, and promote neighborhood
aligned economic growth. In 2019, the development and tax increment finance plans were approved
and allow the Authority to begin its first steps in executing the vision set forth by the corridor's residents,
businesses,and other stakeholders. The Authority's governing body is appointed by the Mayor with the
advice and consent of the City Council. The Authority relies on tax increment revenues as available,
along with grants and other revenues. If there are bond issuances to fund the above activities,they are
approved by the City Council and the legal liability for the debt remains with the City.
The Lansing Entertainment and Public Facilities Authority ("LEPFA") was established under the charter
of the City of Lansing, Michigan in February 1996, replacing the former Greater Lansing
Convention/Exhibition Authority,which had been responsible for operating and managing the Lansing
Center and the Lansing Civic Arena(the latter through the fiscal year ended June 30, 1995). LEPFA was
established to oversee the management and operations of the Lansing Center,Center Park Productions,
Groesbeck Golf Course,and the Jackson Field.
53
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Discretely Presented Component Units (concluded).
LEPFA is chartered as a building authority under the provisions of Act 31,Public Acts of Michigan,1948.
In the event of dissolution or termination of LEPFA,all assets and rights of the Authority shall revert to
the City. LEPFA's Board of Commissioners consists of thirteen members appointed by the Mayor of the
City of Lansing and approved by the City Council.
The South MLKJr.Blvd. Corridor Improvement Authority("MLKCIA")was created in 2019 with the goals
to correct and prevent deterioration in the business district,redevelop the city's commercial corridors,
and promote economic growth. The Development and Tax Increment Financing plans arrange projects
into four categories used by the National Main Street Model: design, economic restructuring,
organization, and promotions/marketing. In 2019, the development and tax increment finance plans
were approved and allow the Authority to begin its first steps in executing the vision set forth by the
corridor's residents,businesses, and other stakeholders. The Authority's governing body is appointed
by the Mayor with the advice and consent of the City Council. The Authority relies on tax increment
revenues as available, along with grants and other revenues. If there are bond issuances to fund the
above activities,they are approved by the City Council and the legal liability for the debt remains with
the City.
The Public Media Authority("PMA")was created in 2022. The Authority was established for the purpose
of acquiring, furnishing, equipping, owning, improving, enlarging, operating, and maintaining City
property. PMA is chartered as a building authority under the provisions of Act 31, Public Acts of
Michigan, 1948. In the event of dissolution or termination of PMA,all assets and rights of the Authority
shall revert to the City. PMA's Board of Commissioners consists of seven members appointed by the
Mayor of the City of Lansing and approved by the City Council.
Component Unit Financial Statements
Complete financial statements for the following individual component units may be obtained from each
entity's administrative offices. Because separately issued financial statements are readily available for these
component units, detailed notes applicable to each Component Unit are not duplicated here in accordance
with GASB 61.
City of Lansing Building Authority
8th Floor
124 West Michigan Avenue
Lansing,Michigan 48933
Brownfield Redevelopment Authority/Tax Increment Finance Authority
1000 S.Washington Avenue,Suite 201
Lansing,Michigan 48910
Lansing Entertainment and Public Facilities Authority
333 East Michigan Avenue
Lansing,Michigan 48933
For the SSCIA,MACIA, MLKCIA,and PMA,these discretely presented component units financial statements
are included in the City's audited financial statements and are not audited separately.
54
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Fiduciary Component Unit
The Pension and Other Postemployment Benefits Trust Funds were established to account for the assets set
aside to fund the City's pension and OPEB plans. The primary purpose of the Trusts is to provide the
necessary funding for pension payments and retiree healthcare coverage provided to eligible City employees
during retirement. The Trusts were established with a Board of Trustees made from individuals from the
City, Council, retirement plans, and the public for each of the Employees' Retirement System and Police
Officers'and Fire Fighters' Retirement System. The assets of the Trusts are for the exclusive benefit of the
participants and their beneficiaries, and the assets shall not be diverted to any other activity prior to the
satisfaction of all liabilities. The assets are protected from any of the City's creditors. The respective Boards
of Trustees have the ability to exercise responsibility,specifically in the area of designation of management.
Joint Venture
In 1998,the City entered into an agreement with Ingham County(the"County") to form the City of Lansing
and County of Ingham Joint Building Authority(JBA)for the purpose of constructing and managing a building
in downtown Lansing that houses the courts,prosecuting attorney,and other related departments. The JBA
is governed by a three-member board composed of one member each appointed by the City and the County
and one appointed jointly by the two units. Both the County and the City contribute cash and/or property
to the JBA. Bonds were issued in 1999 by the JBA to provide the funding necessary to construct the building.
Because the joint venture agreement does not provide an explicit contractual formula outlining the City's
claim to the JBA's assets,it is considered to be a"joint venture with no equity interest"and accordingly,no
amounts are reported in the accompanying financial statements for an equity interest. Financial information
for the JBA may be obtained by writing the Ingham County Financial Services Division,P.O.Box 319,Mason,
Michigan 48854.
Government-wide and Fund Financial Statements
The government-wide financial statements(i.e.,the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and its component units.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities,which rely to a significant extent on fees and charges for
support. Likewise,the primary government is reported separately from certain component units for which
the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase,use,or directly benefit from goods,services,or privileges provided by a given function or segment
and (2)grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds,proprietary funds,and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
55
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Measurement Focus.Basis of Accounting.and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental funds are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. The City considers all revenues reported in the
governmental funds to be available if they are collected within three months after year-end, except for
income taxes that use a 45-day collection period, property taxes that use a 60-day collection period, and
reimbursement-based grants that use one year. Expenditures generally are recorded when a liability is
incurred,as under accrual accounting. However,debt service expenditures,as well as expenditures related
to compensated absences and claims and judgments,are recorded only when payment is due.
Property taxes, intergovernmental revenue,licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and as such have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The City reports the following Major Governmental Funds:
General Fund. This fund is the City's primary operating fund. It accounts for all the financial resources
of the primary government,except those accounted for and reported in another fund.
State and Federal Grant Fund. This Special Revenue fund accounts for all revenues from inter-
governmental grants and various contributions. These revenues are used for projects as detailed in
individual grant applications.
Public Safety Capital Projects Fund. This fund accounts for capital project and debt service activity for
the Public Safety.
The City reports the following Major Enterprise Funds:
Sewage Disposal System Fund. This fund accounts for the activities of the sewage disposal services to the
residents of the City.
Municipal Parking System Fund. This fund accounts for the operation of City-owned parking facilities.
56
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus.Basis of Accounting,and Financial Statement Presentation (continued)
Additionally,the City reports the following Fund Types:
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other than debt service or capital projects
that comprise or are expected to comprise a substantial portion of the fund's total reported inflows.
Debt Service Funds are used to account for and report financial resources that are restricted,committed,
or assigned to expenditure for principal,interest,and related costs.
Capital Projects Funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
Permanent Funds account for resources that are legally restricted to the extent that only earnings, and
not principal,may be used for purposes that support the government's programs.
Enterprise Funds account for those operations that are financed and operated in a manner similar to
private business or where the City has decided that the determination of revenues earned,costs incurred
and/or net income is necessary for management accountability.
Internal Service Funds account for operations that provide services to other departments or agencies of
the City, or to other governments, on a cost-reimbursement basis. This includes operating a
maintenance facility for trucks and equipment used by the Public Service Department,health care and
self-insurance services,engineering, 311 program,and information technology.
Pension and Other Postemployment Benefit Trust Funds account for the accumulation of resources to be
used for retirement annuity payments to eligible full-time employees of the City, certain healthcare
costs,and other postemployment benefit distributions.
The Custodial Funds account for resources held in a fiduciary capacity for the 54-A District Court, and
property taxes collected and distributed to other governments.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments in lieu of taxes and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned. Also, current internal balances between governmental activities and
fiduciary activities have not been eliminated.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
City's enterprise and internal service funds are charges to customers for sales and services. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
57
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus.Basis of Accounting,and Financial Statement Presentation (concluded)
Nonexchange transactions,in which the City gives (or receives)value without directly receiving(or giving)
equal value in exchange, include property taxes, grants, entitlements and donations. On an accrual basis,
revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from
grants,entitlements and donations is recognized in the fiscal year in which all eligibility requirements have
been satisfied.
Restricted net positions are amounts that are subject to restrictions beyond the government's control. The
restrictions may be externally imposed or imposed by law. When both restricted and unrestricted resources
are available for use, it is the government's policy to use restricted resources first, then unrestricted
resources as they are needed.
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources,and Equity
Deposits and Investments
Restricted cash consists of amounts required to be maintained separately in accordance with bond
covenants or other restrictions limiting usage of amounts in certain accounts.
The City maintains an investment pool for all City funds. Each fund's portion of the investment pool is
displayed on the statement of net position/balance sheet as"equity in pooled cash." The City's cash and cash
equivalents are considered to be cash on hand,demand deposits,and short-term investments with original
maturities of three months or less from the date of acquisition.
State statutes authorize the City to invest in:
Bonds, securities, other obligations and repurchase agreements of the United States, or an agency or
instrumentality of the United States.
Certificates of deposit,savings accounts,deposit accounts,or depository receipts of a qualified financial
institution.
Commercial paper rated at the time of purchase within the two highest classifications established by not
less than two standard rating services and that matures not more than 270 days after the date of purchase.
Bankers'acceptances of United States banks.
Obligations of the State of Michigan and its political subdivisions,that,at the time of purchase are rated
as investment grade by at least one standard rating service.
Mutual funds registered under the Investment Company Act of 1940 with the authority to purchase only
investment vehicles that are legal for direct investment by a public corporation.
External investment pools as authorized by Public Act 20 as amended through December 31, 1997.
Investments are stated at fair value. Short-term investments are reported at cost,which approximates fair
value. Unrealized appreciation or depreciation on pension and other postemployment benefit trust fund
investments due to changes in fair value are recognized each year.
58
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity_(continuedl
Receivables/Payables
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible.
Amounts due from other governments include amounts due from grantors for specific programs and capital
projects and for capture property tax revenues not received by applicable component units as of year-end.
Program grants and capital grants for capital assets are recorded as receivables and revenues at the time
reimbursable project costs are incurred. Amounts received in advance of project costs being incurred are
reported as unearned revenue.
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either due to/from other funds (i.e.,the current portion of interfund
loans) or advances to/from other funds (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as due to/from other funds. Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as internal balances.
Certain receivables in governmental funds consist of rehabilitation and redevelopment loans that are
generally not expected or scheduled to be collected in the subsequent year.
Contract receivable consists of amounts collectible from local municipalities for which the City has
irrevocably pledged its full faith and credit as collateral for certain construction and improvement bonds. In
accordance with contractual agreements, these entities will provide all future amounts due for bond
principal and accrued interest payable. The receivable has been reported as current based on the amounts
to be collected next year to satisfy obligations.
Inventories and Prepaids
All inventories are valued at cost using the first-in/first-out method. Inventories of governmental funds are
recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. In governmental funds, prepaid
items are charged to expenditures using the consumption method.
Capital Assets
Capital assets, which include property, plant, equipment, flowage rights, right to use, and infrastructure
assets (e.g., roads, bridges, sidewalks, and similar items acquired or constructed since June 30, 1980), are
reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets having a useful life in excess of three
years and whose costs exceed$5,000 ($100,000 for buildings). Capital assets are stated at historical cost or
estimated historical cost where actual cost information is not available. Donated capital assets are recorded
at their estimated acquisition cost as of the donation date.
59
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity(continued
Capital Assets(concluded)
In addition to land and construction in progress, the amount presented as capital assets not being
depreciated includes intangible assets consisting of land development rights acquired for the purpose of
farmland and ranch preservation. Land development rights are deemed to have an indefinite useful life and
therefore are not being amortized. Right to use assets of the City are amortized using the straight-line
method over the shorter of the subscription period or the estimated useful lives.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. The other capital assets are depreciated using the straight-line method over the following
estimated useful lives:
Years
Buildings 20-50
Improvements 8-50
Equipment 3-15
Sanitary sewers 50
Flowage rights 30
Right to use-SBITA 7
Right to use-building 5
Infrastructure 10-75
The City reviews long-lived assets for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset exceeds its fair value. If it is determined that an impairment loss has
occurred,the asset is written down to its net realizable value and a current charge to income is recognized.
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s)and so will not be recognized as an
outflow of resources(expense/expenditure)until then. The City reports a deferred charge on advance bond
refunding for the difference in the carrying value of refunded debt and its reacquisition price. This amount
is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also reports
deferred outflows of resources for changes in expected and actual investments returns, assumptions, and
benefits provided, related to the net pension and not other postemployment benefit liabilities, when
applicable.
60
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity_(continued)
Compensated Absences
The City permits employees to accumulate earned but unused vacation and compensatory time benefits,
subject to certain limitations. Certain bargaining unit employees are also permitted to accumulate earned
but unused sick leave. The City recognizes a liability for compensated absences for leave time that (1) has
been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried
over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon
separation from employment. The liability for compensated absences is reported as incurred in the
government-wide and proprietary fund financial statements. The liability for compensated absences
includes salary and related benefits,where applicable.
Unearned Revenue
Unearned revenue consists of amounts received prior to the delivery of goods/service or expenditure on
allowable costs.
Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund statement of net position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the straight-line basis. Bonds payable
are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses
when incurred.
In the fund financial statements,governmental fund types recognize bond premiums and discounts,as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld
from the actual debt proceeds received,are reported as debt service expenditures.
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net assets that applies to one or more future periods and so will not be
recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable
revenues, which arise only under a modified accrual basis of accounting that are reported as deferred
inflows of resources. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available. The City also reports deferred inflows of resources for changes in
expected and actual investments returns,assumptions,and benefits provided,related to the net pension and
other postemployment benefit liabilities when applicable.
61
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity(continued
Fund Balances
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are
either (a) not in spendable form or(b) legally or contractually required to be maintained intact. Restricted
fund balance is reported when externally imposed constraints are placed on the use of resources by grantors,
contributors,or laws or regulations of other governments. Committed fund balance is reported for amounts
that can only be used for specific purposes pursuant to constraints imposed by formal action of the
government's highest level of decision-making authority, the City Council. A formal resolution of the City
Council is required to establish, modify, or rescind a fund balance commitment. The City reports assigned
fund balance for amounts that are constrained by the government's intent to be used for specific purposes
but are neither restricted nor committed. The City Council has not delegated the authority to assign fund
balance. Unassigned fund balance is the residual classification for the General Fund. In other funds, the
unassigned classification is used to report a deficit balance resulting from overspending for specific
purposes for which amounts had been restricted,committed,or assigned,when applicable.
When the City incurs an expenditure for purposes for which various fund balance classifications can be used,
it is the City's policy to use restricted fund balance first,then committed,assigned,and finally unassigned.
Stabilization Arrangement
On May 23, 1994,the Council adopted a resolution to establish and maintain a revenue stabilization reserve
in the general fund.
For any year in which actual general fund revenues exceed actual general fund expenditures (including
encumbrances and reappropriation into the succeeding fiscal year) according to the annual City audit and
reappropriations by Council, Council shall appropriate at least 25% of such excess of revenues over
expenditures to the fund until the fund balance reaches a sum equal to 10% of the net current fiscal year
general fund appropriations. Council, upon recommendation of the Mayor, may make additional
appropriations to the fund from one time or intermittent revenue sources or as provided by policy, except
that such appropriations shall not cause the fund balance to exceed a sum equal to 10%of net current fiscal
year general fund appropriations. Appropriations to the fund shall require approval by vote of two-thirds
of the members elected and serving on Council.
Money in the fund may be appropriated by an ordinance or resolution adopted by a two-third vote of the
members elected and serving on Council for the following purposes:
a. To cover a general fund deficit,should the City's annual audit reveal such a deficit;
b. To prevent a reduction in the level of public services or in the number of employees at any time in
the fiscal year when the City's budgeted revenue is not being collected in an amount sufficient to
cover budgeted expenses;
c. To prevent a reduction in the level of public services or in the number of employees when, in
preparing the budget for the next fiscal year,the City's estimated revenue does not appear sufficient
to cover estimated expenses;and
62
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity_(continuedl
Stabilization Arrangement(concluded)
d. To cover expenses arising because of a natural disaster, including flood, fire, or tornado, with the
provision that if Federal or State funds are received to offset the appropriations from the fund,that
such money shall be returned to the fund.
Leases&Subscription-based ITArrangements(SBITA)
Lessee/Subscriber: The City is a lessee for a noncancelable lease/subscription of a building and an IT
arrangement. The City recognizes a lease/SBITA liability and an intangible right-to-use asset/SBITA in the
government-wide financial statements.
At the commencement of a lease/subscription, the City initially measures the lease/SBITA liability at the
present value of payments expected to be made during the lease/SBITA term. Subsequently,the lease/SBITA
liability is reduced by the principal portion of lease/SBITA payments made. The lease/SBITA asset is initially
measured as the initial amount of the lease/SBITA liability, adjusted for lease/SBITA payments made at or
before the lease/SBITA commencement date,plus certain initial direct costs. Subsequently,the lease/SBITA
asset is amortized on a straight-line basis over its useful life.
Key estimates and judgements related to lease/SBITA's included how the City determines (1) the discount
rate it uses to discount the expected lease/SBITA payments to present value, (2) lease/SBITA term,and (3)
lease/SBITA payments.
➢ The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided,the City generally uses its estimated incremental borrowing
rate as the discount rate for lease/SBITA.
➢ The lease/SBITA term includes the noncancelable period of the subscription. Lease/SBITA
payments included in the measurement of the lease/SBITA liability are composed of fixed payments
and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease/SBITA and will
remeasure the lease/SBITA asset and liability if certain changes occur that are expected to significantly affect
the amount of the lease/SBITA liability. Lease/SBITA assets are reported with other capital assets and
SBITA liabilities are reported with long-term obligations on the statement of net position.
Leases
Lessor: The City is a lessor for a noncancelable lease of a building. The City recognizes a lease receivable
and a deferred inflow of resources in the government-wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently,the lease receivable is reduced by
the principal portion of lease payments received. The deferred inflow of resources is initially measured as
the initial amount of the lease receivable, adjusted for lease payment received at or before the lease
commencement date. Subsequently,the deferred inflow of resources is recognized as revenue over the life
of the lease term.
63
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(concluded)
Assets.Deferred Outflows of Resources.Liabilities,Deferred Inflows of Resources.and Equity(concluded)
Leases(concluded)
Key estimates and judgements include how the City determines (1)the discount rate is used to discount the
expected lease receipts to present value, (2)lease term,and(3)lease receipts.
➢ The City uses its estimated incremental borrowing rate as the discount rate for leases.
➢ The lease term includes the noncancelable period of the lease. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of this lease and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected
to significantly affect the amount of the lease receivable.
Interfund Transactions
During the course of normal operations, the City has numerous transactions between funds, including
expenditures and transfers of resources to provide services, construct assets, and service debt. The
accompanying financial statements generally reflect such transactions as transfers. Operating subsidies are
also recorded as transfers. The amounts recorded as subsidies or advances are determined by the City.
Balances outstanding at year-end are reported as due to/from other funds. Transfers between
governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial
statements. Internal service funds are used to record charges for services to all City departments and funds
as transfers or operating revenue. All City funds record these payments to the internal service funds as
transfers or operating expenditures/expenses.
Pension and Other Postemployment Benefit Plans
For purposes of measuring the net pension and other postemployment benefit liabilities,deferred outflows
of resources and deferred inflows of resources related to pensions and other postemployment benefits,and
pension and other postemployment benefit expense, information about the fiduciary net position of the
plans and additions to/deductions from the plan fiduciary net position have been determined on the same
basis as they are reported by the plans. For this purpose,benefit payments (including refunds of employee
contributions)are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly,actual results could differ from those estimates.
The City utilizes various investment instruments which are exposed to various risks, such as interest rate,
credit,and overall market volatility. Due to the level of risk associated with certain investment securities,it
is reasonably possible that changes in the values of investment securities will occur in the near-term and
that such changes could materially affect the amounts reported in the financial statements.
64
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -BUDGETARY INFORMATION
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
➢ On or before the fourth Monday in March,the Mayor submits to the City Council a proposed operating
budget for the fiscal year commencing the following July 1.
➢ Public hearings are conducted to obtain taxpayer comments.
➢ Not later than the third Monday in May,the Council adopts a budget through passage of a resolution.
➢ The appropriated budget is prepared by fund,department,and the mandatory expenditure accounts as
established by the State of Michigan's Uniform Chart of Accounts. Within the General Fund, the legal
level of budgetary control is the mandatory expenditure accounts (personal services, supplies and
operating expenses, capital outlay, debt service, transfers, and contingency) within each department.
Within other funds,the legal level of budgetary control is the mandatory expenditure accounts(personal
services, supplies and operating expenses, capital outlay, debt service, transfers, and contingency)
within that fund. Transfers between appropriations (mandatory accounts) require City Council
approval. An exception to City Council approval is allowed by City Charter for transfers between
appropriations (mandatory accounts) for amounts less than five thousand dollars,but not in excess of
15%of the appropriation in cases where five thousand dollars exceeds 15%of the appropriation.
Copies of the City's separately issued budget report may be obtained from the Finance Department, 124 West
Michigan Avenue,Lansing,Michigan 48933 or on the City's website at www.lansingmi.gov.
➢ The City formally adopts operating budgets for the General Fund and all special revenue funds.
➢ The budgets are adopted on a basis consistent with generally accepted accounting principles ("GAAP").
➢ Appropriations lapse at year-end for all annual budgets. Appropriations are automatically carried
forward for project-type budgets.
NOTE 3 - DEFICIT FUND EQUITY
The Cemetery,Garbage and Rubbish Collection,and Recycling Enterprise Funds reported deficits in unrestricted
net position of$1,249,425,$492,043,and$1,768,680,respectively,primarily as a result of the recognition of net
pension and net other postemployment benefit liabilities in these funds.
The Tax Increment Finance Authority, Brownfield Redevelopment Authority, and Public Media Authority
component units reported deficits in unrestricted net position of $21,018,894, $37,376,048, and $25,033
respectively at June 30, 2025. The deficits related to Tax Incremental Finance Authority and Brownfield
Redevelopment Authority are a result of full-accrual accounting for long-term obligations,without reflecting a
corresponding receivable for tax captures to be received in future periods (which cannot be accrued in
accordance with generally accepted accounting principles).The Public Media Authority deficit relates to timing
of expenditures incurred compared revenue received.
65
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances for the primary government and component
units(including both pooled cash and investments as well as pension and other postemployment benefit(OPEB)
trust fund balances) as of June 30,2025:
Primary Component Fiduciary Reporting
Government Units Funds Entity
Cash and cash equivalents $ 6,908,515 $ 30,103,470 $ 24,431,885 $ 61,443,870
Equity in pooled cash and investments 87,630,123 944,392 184,739 88,759,254
Cash and cash equivalents-restricted 201,936,595 3,509,573 - 205,446,168
Investments 2,026,085 - 709,139,836 711,165,921
$ 298,501,318 $ 34,557,435 $ 733,756,460 $ 1,066,815,213
Deposits and investments
Bank deposits
Checking/savings accounts-Pension&OPEB related-nonpooled $ 23,392,204
Checking/savings accounts-City-wide accounts-all other 290,587,380
Investment in securities and mutual funds
Pooled investments 43,566,613
Employees'retirement system investments 239,021,519
Police and fire retirement system investments 410,340,847
Employees'money purchase pension plan investments 9,040,140
Retiree health care VEBA investments 50,737,330
Total investment in securities and mutual funds 1,066,686,033
Cash on hand 129,180
Total $ 1,066,815,213
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,
$310,752,110 of the City's bank balance of$314,046,810 was exposed to custodial credit risk because it was
uninsured and uncollateralized. The book balance of all deposits (other than pension & OPEB related) was
$290,587,380.
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.
66
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS(continued)
Custodial Credit Risk-Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City
will not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. State law does not require, and the City does not have a policy for investment custodial credit
risk. On the investments listed above,there is no custodial credit risk,as these investments are uncategorized
as to credit risk. Disclosure related to the TIFA pooled investment are described in their separately issued,
readily available financial statements so they are not presented here in accordance with GASB 61.
Credit Risk
State law limits investments to specific government securities, certificates of deposit and bank accounts with
qualified financial institutions, commercial paper with specific maximum maturities and ratings when
purchased,bankers' acceptances of specific financial institutions,qualified mutual funds and qualified external
investment pools as identified in the list of authorized investments in the summary of significant accounting
policies. The City's investment policy does not have specific limits in excess of state law on investment credit
risk. Credit risk ratings,where applicable,are summarized as follows:
S&P AAAm $ 9,077,748
AA 2,797,107
Not rated 31,433,421
Assets not subject to credit risk 258,337
$ 43,566,613
Interest Rate Risk
State law limits the allowable investments and the maturities of some of the allowable investments as identified
in the summary of significant accounting policies. The City's investment policy does not have specific limits in
excess of state law on investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates. For investments held at year end maturities are as follows:
Due within one year $ 34,230,528
No maturity 9,336,085
$ 43,566,613
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single
issuer. State law limits allowable investments but does not limit concentration of credit risk as identified in the
list of authorized investments in the summary of significant accounting policies. The City's investment policy
does not have specific limits in excess of state law on concentration of credit risk. All investments held at year-
end are reported above.
67
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset, as determined by the City's investment advisors. Level 1 inputs are quoted prices in active markets
for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs.
Securities traded on a national or international exchange are valued at the last reported sales price at current
exchange rates. Debt securities are valued by the City's investment custodian using independent pricing services
based on the type of asset. The pricing services may use valuation models or matrix pricing,which consider: (a)
benchmark yields, (b) reported trades, (c) broker/dealer quotes, (d) benchmark securities, (e) bids or offers,
and (f) reference data. The City's level 2 investments as noted in the table below are valued using significant
other observable inputs of the underlying securities.
Investment Type Level 1 Level 2 Level 3 Total
U.S.treasuries $ - $ 31,433,421 $ - $ 31,433,421
Commercial paper 2,797,107 - 2,797,107
Money market funds 258,337 - - 258,337
$ 258,337 $ 34,230,528 $ - 34,488,865
Investments carried at net asset value
Michigan CLASS government investment pool 9,077,748
$ 43,566,613
Investments in Entities that Calculate Net Asset Value per Share
The City holds shares in Michigan CLASS whereby the fair value of the investment is measured on a recurring
basis using net asset value per share (or its equivalent) of the investment pool as a practical expedient. It has a
rating of AAAm from Standard and Poor's with a weighted average maturity of 45 days.
At year end,the net asset value of the City's investment in Michigan CLASS was$9,077,748. The investment pool
had no unfunded commitments, specific redemption frequency or redemption notice period required. The
Michigan CLASS investment pool invests in U.S. treasury obligations, federal agency obligations of the U.S.
government, high-grade commercial paper (rated 'A-1' or better) collateralized bank deposits, repurchase
agreements (collateralized at 102% by Treasuries and agencies), and approved money-market funds. The
program seeks to provide safety,liquidity,convenience,and competitive rates of return,and is designed to meet
the needs of Michigan public sector investors. It purchases securities that are legally permissible under state
statutes and are available for investment by Michigan counties, cities,townships, school districts, authorities,
and other public agencies.
68
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
Pension and Other Postemployment Benefit Trust Funds
The deposits and investments of the City's pension and other postemployment benefit trust funds are
maintained separately from the City's pooled cash and investments and are subject to separate investment
policies and State statutes. Accordingly, the required disclosures for the pension and OPEB deposits and
investments are presented separately.
Deposits
The pension and OPEB trust funds maintain demand deposit accounts and equity in pooled cash to handle
operational transactions. The book balance of such deposits totaled$24,431,885 at year end.
Investments
The Michigan Public Employees' Retirement Systems' Investment Act, Public Act 314 of 1965, as amended,
authorizes the pension trust funds to invest in stocks, government and corporate securities, mortgages, real
estate,and various other investment instruments,subject to certain limitations. The retirement boards have the
responsibility and authority to oversee the investment portfolio. Various professional investment managers are
contracted to assist in managing the pension trust funds'assets. All investment decisions are subject to Michigan
law and the investment policy established by the retirement boards.
The investments of each pension trust fund are held in a bank administered trust fund. Following is a summary
of pension and other postemployment benefits investments as of June 30,2025:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
Domestic equities
Not on securities loan $ 46,125,288 $ 83,341,533 $ $ $ 129,466,821
On securities loan 10,206,934 17,630,356 27,837,290
International equities
Not on securities loan 418,138 999,287 1,417,425
On securities loan 594,521 822,742 1,417,263
Emerging markets equities 13,696,232 19,608,250 677,266 33,981,748
Real estate investment mutual funds 16,055,835 22,750,737 - 38,806,572
International equity mutual funds 120,136,269 210,848,712 471,658 8,204,464 339,661,103
Domestic equity mutual funds 28,199,180 49,104,475 8,490,035 22,207,787 108,001,477
Domestic debt securities mutual funds - - 78,447 16,449,794 16,528,241
Balanced mutual funds - - - 2,071,774 2,071,774
Money market funds 3,589,122 5,234,755 - 1,126,245 9,950,122
$ 239,021,519 $ 410,340,847 $ 9,040,140 $ 50,737,330 $ 709,139,836
69
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS(continued)
Credit Risk
The City's pension investment policies provide that at least 90%of its investments in fixed income securities be
rated BBB- or better by a nationally recognized statistical rating organization and the remaining 10%be rated
at least B-or better. The City's pension and other postemployment benefits investments were rated by Standard
&Poor's as follows:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
AAA $ $ $ $ 907,932 $ 907,932
S&P AAAm 1,126,245 1,126,245
AA 78,385 7,753,716 7,832,101
A - 1,733,556 1,733,556
BBB 2,844,019 2,844,019
BB - 414,958 414,958
B 62 144,558 144,620
Not rated 3,634,671 5,234,756 - 331,354 9,200,781
Assets not subject to credit risk 235,386,848 405,106,091 8,961,693 35,480,992 684,935,624
$ 239,021,519 $ 410,340,847 $ 9,040,140 $ 50,737,330 $ 709,139,836
Custodial Credit Risk
For investments,custodial credit risk is the risk that,in the event of the failure of the counterparty,the City will
not be able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The City's pension investment policies require that investment securities be held in trust by a third-party
institution in the name of the pension trust fund. As such, although uninsured and unregistered, the City's
pension investments are not exposed to custodial credit risk since the securities are held by the counterparty's
trust department in the name of the pension trust fund. Short-term investments in money market funds and
open-end mutual funds are not exposed to custodial credit risk because their existence is not evidenced by
securities that exist in physical or book form.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single
issuer. State law limits allowable investments but does not limit concentration of credit risk as identified in the
list of authorized investments in the summary of significant accounting policies. The City's investment policy
does not have specific limits in excess of state law on concentration of credit risk. All investments held at year-
end are reported above.
The City's pension and other postemployment benefits investment policies require diversification of fixed
income securities;however,they do not specify percentages of dollar amounts by industry or issuer.
70
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an
investment or deposit. The pension and other postemployment benefits trusts' exposure to foreign currency
risk is as follows:
Employees' Police and Fire Employees' Retiree
Retirement Retirement Money Purchase Health Care
System System Pension Plan VEBA Totals
International equities
Canada $ 763,743 $ 1,373,247 $ $ - $ 2,136,990
Israel 167,383 301,270 - 468,653
Japan 57,745 104,541 - 162,286
Sweden 23,788 42,971 - 66,759
International mutual funds 120,136,269 210,848,712 471,658 8,204,464 339,661,103
$ 121,148,928 $ 212,670,741 $ 471,658 $ 8,204,464 $ 342,495,791
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair market value of an
investment. The City's pension investment policies provide that the average duration of fixed income securities
shall not deviate from the Bloomberg Aggregate Index duration by+/-20%. As of June 30, 2025, maturities of
the City's pension and other postemployment benefits trust debt securities, money market funds, and
collateralized mortgage obligations were as follows:
Employee Retirement System
Fixed income investments with no maturity
Money market funds $ 3,589,122
Police and Fire Retirement System
Fixed income investments with no maturity
Money market funds $ 5,234,755
Employees'Money Purchase Pension Plan
Investment Maturities(fair value by years)
Less than 1 1-5 6-10 More than 10 Total
Domestic debt securities mutual funds $ - $ $ 78,447 $ - $ 78,447
Securities Lendine
Under contracts approved by the City,the pension and other postemployment benefits trust funds are permitted
to lend their securities to broker-dealers and banks(borrowers)for collateral that will be returned for the same
securities in the future. The pension trust and other postemployment benefits funds' custodial banks manage
the securities lending programs and receive cash as collateral. Collateral cash is initially pledged at 100%of the
fair value of the securities lent and may not fall below 95%of the market value of the loaned security during the
term of the loan. At all times,collateral cannot be more than$100,000 less than the market value of the loaned
security. There are no restrictions on the amount of securities that can be loaned.
71
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (continued)
Securities Lending (concluded)
Securities on loan at year-end are classified in the preceding schedule of custodial credit risk according to the
category for the collateral received on the securities lent. At year-end, the pension trust funds have no credit
risk exposure to borrowers because the collateral held by the custodians exceeds the market value of the related
securities lent. At June 30, 2025,the fair value of securities on loan by the Employees' Retirement System and
the Police and Fire Retirement System were $10,800,970 and $18,452,161, respectively, for which the Plans'
received cash collateral of$11,036,085 and$18,841,816,respectively. The contract with the pension and other
postemployment benefits trust fund custodians requires them to indemnify the City if the borrowers fail to
return the securities (and if the collateral is inadequate to replace the securities lent) or fail to pay the City for
income distributions by the securities'issuers while the securities are on loan.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset, as determined by the City's investment advisors. Level 1 inputs are quoted prices in active markets
for identical assets; level 2 inputs are significant other observable inputs; level 3 inputs are significant
unobservable inputs.
Securities traded on a national or international exchange are valued at the last reported sales price at current
exchange rates. Debt securities are valued by the Plans' investment custodian using independent pricing
services based on the type of asset. The pricing services may use valuation models or matrix pricing, which
consider: (a)benchmark yields,(b)reported trades,(c)broker/dealer quotes,(d)benchmark securities,(e)bids
or offers, and (f) reference data. Asset-backed and mortgage-backed securities funds are valued based on the
future cash flows of the principal and interest payments of the underlying collateral of mortgages on various
assets. The Plans'level 2 investments as noted in the tables below are valued using significant other observable
inputs of the underlying securities.
The City has the following recurring fair value measurements as of June 30, 2025:
Employee Retirement System
Investment Type Level 1 Level 2 Level 3 Total
Domestic equities $ 56,332,222 $ - $ $ 56,332,222
International equities 1,012,659 1,012,659
Emerging market equities 13,696,232 - 13,696,232
Mutual funds 148,335,449 7,205,823 - 155,541,272
Money market funds 3,589,122 - 3,589,122
$ 222,965,684 $ 7,205,823 $ - 230,171,507
Investments carried at net asset value
Real estate investment trusts 8,850,012
$ 239,021,519
72
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 4-DEPOSITS AND INVESTMENTS (concluded)
Fair Value Measurement(concluded)
Police and Fire Retirement System
Investment Type Level 1 Level 2 Level 3 Total
Domestic equities $ 100,971,889 $ $ $ 100,971,889
International equities 1,822,029 1,822,029
Emerging market equities 19,608,250 - - 19,608,250
Mutual funds 227,049,815 10,427,960 - 237,477,775
Money market funds 5,234,755 - - 5,234,755
$ 354,686,738 $ 10,427,960 $ - 365,114,698
Investments carried at net asset value
Real estate investment trusts 12,322,777
International equity mutual funds 32,903,372
$ 410,340,847
Net Asset Value Investments - Certain investments noted above are carried at net asset value as these are not
actively traded. The fair value is estimated based on the dollar value per share as of June 30, 2025. These
investments are able to be liquidated as needed,to the extent there is a willing buyer in the market. There are
not any restrictions related to the sale of these investments. At June 30,2025,the City has$179,872 outstanding
on initial commitments of$4,300,000 with the Invesco Mortgage Recovery Fund (the"Fund"). The Fund has a
seven-year life,and the intent is to sell all of the investments prior to the Fund's maturity. The other investments
at net asset value do not contain required redemption periods.
Employees'Money Purchase Pension Plan
Investment Type Level 1 Level 2 Level 3 Total
Mutual funds $ 9,040,140 $ $ $ 9,040,140
Retiree Healthcare VEBA
Investment Type Level 1 Level 2 Level 3 Total
Emerging market equities $ 677,266 $ $ $ 677,266
Mutual funds 48,933,819 48,933,819
Money market funds 1,126,245 - 1,126,245
$ 50,737,330 $ $ $ 50,737,330
73
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - RECEIVABLES
Receivables are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts receivable $ 45,815,833 $ 8,196,377 $ 1,912,010
Taxes receivable 2,082,866 - -
Special assessments receivable 9,792,994 -
Loans receivable 1,211,238 63,921
Lease receivable 385,193 - -
Accrued interest receivable 2,527,946 163,352
Due from other governments 35,656,926 33,269,071
Contract receivable - 14,098,563
Allowance for uncollectible accounts (454,677) - (25,280)
$ 97,018,319 $ 55,727,363 $ 1,950,651
Amount not expected to be collected within one year $ 20,108,453 $ 12,204,920 $ 18,511
NOTE 6 - CAPITAL ASSETS
Capital asset activity for the year ended June 30,2025,was as follows:
Balance Additions/ Deletions/ Balance
July 1,2024 Reclassifications Reclassifications June 30,2025
Governmental Activities
Capital assets not being depreciated/amortized
Land $ 27,743,613 $ - $ - $ 27,743,613
Construction in process 29,866,714 52,446,523 (23,196,771) 59,116,466
Subtotal 57,610,327 52,446,523 (23,196,771) 86,860,079
Capital assets being depreciated/amortized
Land improvements 31,049,542 - 31,049,542
Equipment and vehicles 55,622,106 7,215,080 (4,361,859) 58,475,327
Buildings 138,403,536 2,333,768 140,737,304
Right of use-buildings - 385,798 385,798
Flowage rights 31,755,473 - 31,755,473
Right of use-SBITA 5,565,757 - (114,393) 5,451,364
Infrastructure 353,597,504 21,533,677 - 375,131,181
Subtotal 615,993,918 31,468,323 (4,476,252) 642,985,989
Less accumulated depreciation/amortization for:
Land improvements (18,328,620) (1,145,056) - (19,473,676)
Equipment and vehicles (40,158,927) (3,410,598) 4,358,777 (39,210,748)
Buildings (110,969,289) (3,399,377) - (114,368,666)
Right of use-buildings (53,882) (53,882)
Flowage rights (3,615,795) (1,058,516) - (4,674,311)
Right of use-SBITA (1,056,410) (1,124,066) 114,393 (2,066,083)
Infrastructure (245,400,532) (5,814,347) - (251,214,879)
Subtotal (419,529,573) (16,005,842) 4,473,170 (431,062,245)
Net capital assets being depreciated/amortized 196,464,345 15,462,481 (3,082) 211,923,744
Capital assets,net $ 254,074,672 $ 67,909,004 $ (23,199,853) $ 298,783,823
At June 30, 2025, the City's governmental activities had outstanding commitments through construction
contracts of approximately$230,718,000.
74
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 6-CAPITAL ASSETS (concluded)
Depreciation/amortization expense was charged to the following governmental activities:
Depreciation/amortization of governmental activities by function
General government $ 223,649
Public safety 1,147,034
Public works 7,402,201
Recreation and culture 3,242,928
Community and economic development 554,125
Internal service fund 3,435,905
Total depreciation/amortization expense-governmental activities $ 16,005,842
Balance Additions/ Deletions/ Balance
July 1,2024 Reclassifications Reclassifications June 30,2025
Business-Type Activities
Capital assets not being depreciated
Land $ 12,369,507 $ - $ - $ 12,369,507
Construction in progress 12,695,894 15,531,567 (6,193,523) 22,033,938
Subtotal 25,065,401 15,531,567 (6,193,523) 34,403,445
Capital assets being depreciated
Land improvements 30,077,106 - 30,077,106
Equipment and vehicles 21,952,553 2,457,207 24,409,760
Buildings 195,872,783 727,092 196,599,875
Sewers 393,044,031 9,367,983 402,412,014
Subtotal 640,946,473 12,552,282 653,498,755
Less accumulated depreciation for:
Land improvements (14,540,405) (549,055) (15,089,460)
Equipment and vehicles (9,372,909) (1,676,702) (11,049,611)
Buildings (148,515,712) (4,586,898) (153,102,610)
Sewers (145,064,634) (8,648,586) (153,713,220)
Subtotal (317,493,660) (15,461,241) (332,954,901)
Net capital assets being depreciated 323,452,813 (2,908,959) 320,543,854
Capital assets,net $ 348,518,214 $ 12,622,608 $ (6,193,523) $ 354,947,299
At June 30, 2025, the City's business-type activities had outstanding commitments through construction
contracts of approximately$80,991,000.
Depreciation expense was charged to the following business-type activities:
Depreciation of business-type activities by function
Sewage disposal system $ 13,505,389
Municipal parking system 1,871,417
Cemetery 9,827
Golf 56,742
Recycling 17,866
Total depreciation expense-business-type activities $ 15,461,241
Details applicable to the Component Units capital assets are readily available in their separate issued financial
statements and are not duplicated here in accordance with GASB 61.
75
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 7 -ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of the following:
Governmental Business-type Component
Activities Activities Units
Accounts payable $ 22,261,410 $ 3,791,329 $ 10,387,352
Accrued payroll 2,541,049 172,012 -
Deposits payable - 95,713 -
Due to other governments 1,885,330 - 22,689
Claims incurred but not reported 1,741,866 -
Other 2,446,505 - 367,453
$ 30,876,160 $ 4,059,054 $ 10,777,494
NOTE 8-INTERFUND RECEIVABLES,PAYABLES,AND TRANSFERS
The composition of interfund balances of the primary government as of June 30, 2025,was as follows:
Due to and from primary government funds
Due to Sewer Disposal System Fund
From Internal Service Fund $ 3,543,795
Due to General Fund
From Federal Grants Fund $ 2,034,865
From Nonmajor Governmental Funds 424,862
Total Due to General Fund $ 2,459,727
The above balance generally resulted from a time lag between the dates that interfund goods and services were
provided or reimbursable expenditures occur, transactions were recorded in the accounting system, and
payments between funds were made.
For the year ended June 30,2025,interfund transfers consisted of the following:
Transfers In
Governmental Proprietary
Federal
Grants- Nonmajor Nonmajor
General Special Governmental Municipal Enterprise
Fund Revenue Funds Parking Funds Total
Transfers out
Governmental
General Fund $ - $ 186,132 $ 918,000 $ $ $ 1,104,132
Federal Grants-Special Revenue 4,260,973 - - 4,260,973
Nonmajor Governmental Funds 1,037,233 4,668,525 736,000 6,441,758
Proprietary
Internal Service Funds 287,726 287,726
Total $ 5,298,206 $ 186,132 $ 5,586,525 $ 287,726 $ 736,000 $ 12,094,589
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them to assist in covering specific outlays or general operational costs as
applicable; (2) move receipts restricted to or allowed for debt service or capital projects from the funds
collecting the receipts to the respective fund as debt service payments become due or capital outlay is
constructed; and (3) use unrestricted revenues collected in the General Fund to finance various programs
accounted for in other funds in accordance with budgetary authorizations.
76
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9 - LONG-TERM OBLIGATIONS
General Obligation Bonds
The government issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the
government. These bonds are issued as 10 to 30-year serial bonds with varying amounts of principal maturing
each year. General obligation bonds currently outstanding are as follows:
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rates Amount July 1,2024 (Deletions) June 30,2025 One Year
Governmental Activities
2019 General Obligation Refunding-Limited Tax[i) 4/10/2019 4.00% $ 7,456,200 $ 4,653,750 $ (624,750) $ 4,029,000 $ 6SO,2S0
2021 Capital Improvement Bonds,Series 2021(LTGO) 12/21/2021 2.15% 4,490,000 3,655,000 (280,000) 3,375,000 290,000
Capital improvement Bonds,Series 2023(Ovation) 8/16/2023 5.00% 20,000,000 20,000,000 - 20,000,000 355,000
2023B Capital Improvement Bonds(LTGO) 6/29/2023 4.00%-5.00% 175,000,000 172,790,000 (1,970,000) 170,820,000 2,265,000
Montgomery Drain District-Series 2021 G.O.Bonds[a) 8/1/2022 2.00%-2.45% 3,961,607 3,605,000 (140,000) 3,465,000 -
Montgomery Drain District-Series 2023 G.O.Bonds(3) 3/1/2023 1.125%-4.125% 7,760,986 7,590,000 (175,000) 7,415,000 -
Montgomery Drain District-Series 2020A G.O.Bonds ta] 9/8/2020 2.00%-2.25% 20,032,880 18,460,000 (415,000) 18,045,000
Total Governmental Activities 238,701,673 230,753,750 (3,604,750) 227,149,000 3,560,250
Business-type Activities
2017 Building Authority Refunding Bonds-Limited Tax 12/11/2017 3.305%-4.075% 10,805,000 10,805,000 - 10,805,000 475,000
2020 Building Authority Refunding Bonds-Limited Tax 8/13/2020 1.424%-2.793% 8,735,000 8,335,000 (100,000) 8,235,000 100,000
2003 Limited Tax Sewer Bond-5005-15 3/27/2003 2.50% 10,145,688 610,688 (610,688) - -
2004 Limited Tax Sewer Bond-5005-16 3/25/2004 2.125% 3,842,649 447,649 (220,000) 227,649 227,649
2005 Limited Tax Sewer Bond-S00S-17 3/25/2004 2.125% 8,003,778 913,778 (465,000) 448,778 448,778
2005 Limited Tax Sewer Bond-5005-18 3/34/200S 1.625% 13,389,371 2,029,371 (680,000) 1,349,371 680,000
2006 Limited Tax Sewer Bond-SO05-19 3/30/2006 1.62S% 18,216,346 3,931,346 (980,000) 2,951,346 985,000
2007 Limited Tax Sewer Bond-S00S-20 3/29/2007 1.625% 24,244,726 6,384,726 (1,275,000) 5,109,726 1,275,000
2008 Limited Tax Sewer Bond-5005-21 4/1/2008 2.50% 27,494,933 9,670,453 (1,515,000) 8,155,453 1,555,000
2008 Limited Tax Sewer Bond-SO05-22 4/17/2009 2.SO% 14,455,604 6,605,604 (755,000) 5,850,604 775,000
2010 Limited Tax Sewer Bond-5411-01 1/22/2010 2.50% 8,548,000 4,273,000 (435,000) 3,838,000 445,000
2015 Limited Tax Sewer Bond-5211-01 4/9/2014 2.50% 3,372,405 2,057,405 (165,000) 1,892,405 170,000
2015 Limited Tax Sewer Bond-5211-02 7/9/2014 2.SO% 2,185,065 1,315,065 (105,000) 1,210,065 110,000
2016 Limited Tax Sewer Bond-SS81-01 4/11/2016 2.50% 3,206,310 2,396,310 (145,000) 2,251,310 150,000
2019 Limited Tax Sewer Bond-5005-23 4/10/2018 2.00% 8,877,827 7,297,827 (410,000) 6,887,827 425,000
2019 Limited Tax Sewer Bond-5672-01(2) 6/7/2019 2.00% 9,214,990 7,984,990 (430,000) 7,554,990 440,000
2019 General Obligation Refunding-Limited Tax-Sewer") 4/10/2019 4.00% 7,163,800 4,471,250 (600,250) 3,871,000 624,750
2022 Limited Tax Sewer Bond-SOOS-24 taI 3/2S/2022 2.125% 23,570,000 20,505,965 (529,500) 19,976,465 -
2023 Limited Tax Sewer Bond-5005-25(s) 3/24/2023 1.875% 19,881,280 109,217 8,062,027 8,171,244 -
2023 Limited Tax Sewer Bond-5005-26(6) 4/1/2024 2.00% 11,595,000 424,351 5,413,896 5,838,247 -
2020 CIB&Refunding Bonds-Municipal Panting 8/13/2020 3.00%-5.00% 9,405,000 7,525,000 (625,000) 6,900,000 660,000
Total Business-type Activities 246,352,772 108,093,995 3,430,485 111,524,480 9,546,177
Total General Obligation Bonds $ 485,054,445 $ 338,847,745 $ (174,265) _L 338,673,480 $ 13,106,427
(1)These debt issues are split between governmental and business-type activities.
(2)This debt issue was originally issued in 2019 but proceeds are drawn as the project progresses.
(3)This debt is funded by general assessments and drain code tax.
(4)The annual requirements to pay the long-term debt principal and interest outstanding are not shown because
the loan has not been fully drawn down and as a result the maturity schedule is not in place at year end,
the first payment is anticipated to be made during fiscal year 2025.
(5)The annual requirements to pay the long-term debt principal and interest outstanding are not shown because
the loan has not been fully drawn down and as a result the maturity schedule is not in place at year end,
the first payment is anticipated to be made during fiscal year 2027.
(6)The annual requirements to pay the long-term debt principal and interest outstanding are not shown because
the loan has not been fully drawn down and as a result the maturity schedule is not in place at year end,
the first payment is anticipated to be made during fiscal year 2026.
The purpose of each of the General Obligation bonds issued in the Governmental activities was for an energy
conservation project,economic development projects,facility improvements,various street improvements,and
drainage projects.
The purpose of each of the General Obligation(G.O.)bonds issued in the Business-type activities for the Building
Authority were for municipal parking system projects. The G.O. sewer bonds issued were for various sewer
capital improvement projects throughout the City.
77
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9 -LONG-TERM OBLIGATIONS (continued)
Revenue Bonds
The City also issues bonds where the income derived from the acquired or constructed assets is pledged to pay
debt service. Revenue bonds outstanding at year-end are as follows:
Amounts
Issuance Interest Original Balance Balance Due Within
Date Rates Amount July 1,2024 Deletions June 30,2025 One Year
Business-type Activities
2013 Sewer Revenue Refunding Bonds 12/27/2012 3.000%-5.000% $ 21,765,000 $ 6,300,000 $ (1,S75,000) $ 4,725,000 $ 1,575,000
The purpose of these noted bonds were for sewer capital improvement projects.
Pledged Revenues
The City has pledged future sewer customer revenues,net of specified operating expenses,to repay$7,875,000
in sewer revenue and refunding bonds issued in 2013. Proceeds from the bonds provided financing for the
construction for various sewer infrastructure projects. The bonds are payable solely from sewer customer net
revenues and are payable through 2028. Annual principal and interest payments on the bonds are expected to
require less than 14% of net revenues. The total principal and interest paid for the current year and total
customer net revenues were$1,799,438 and$28,168,633,respectively.
Installment Purchase Agreements
The government has entered into installment purchase agreements for equipment and related capital assets.
Installment purchase agreements outstanding at year-end are as follows:
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1,2024 (Deletions) June 30,2025 One Year
Governmental Activities
2021 Installment Purchase Agreement(LTGO) 8/18/2021 2.14% $ 10,569,000 $ 9,009,000 $ (666,000) $ 8,343,000 $ 681,000
2021 Installment Purchase Agreement(LTGO) 9/1/2021 1.81% 12,500,000 10,603,000 (799,000) 9,804,000 813,000
$ 23,069,000 $ 19,612,000 $ (1,465,000) $ 18,147,000 $ 1,494,000
The purpose of the lease purchase agreements were for vehicle acquisitions as noted and the installment
purchase agreements were for various facility improvements.
Lease Payable
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1,2024 (Deletions) June 30,2025 One Year
Governmental Activities
2025 building lease agreement 11/1/2024 3.00% $ 385,798 $ $ 336,782 $ 336,782 $ 73,884
The purpose of the lease was for use of building space.
78
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9 -LONG-TERM OBLIGATIONS (continued)
Loans Payable
The government has entered into loan agreements with the certain State agencies for program purposes. Loans
payable at year-end are as follows:
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1,2024 (Deletions) June 30,2025 One Year
Governmental Activities
HUD Section 108 Loan 5/28/2015 1.52% $ 5,900,000 $ 4,315,000 $ (420,000) $ 3,895,000 $ 435,000
2020 IPA Fire Truck 10/28/2020 1.40% 1,390,000 904,824 (133,311) 771,513 135,183
2014 SIB Loan 3/27/2014 3.00% 1,972,600 59,349 (59,349)
$ 9,262,600 $ 5,279,173 $ (612,660) $ 4,666,513 $ 570,183
The purpose of the HUD loan was for applicable capital improvements within the City. The IPA was for the
acquisition of a new fire truck for public safety purposes. The purpose of the SIB loan was for various street
improvements.
Subscription-Based IT Arrangements
Amounts
Issuance Interest Original Balance Additions/ Balance Due Within
Date Rate Amount July 1,2024 (Deletions) June 30,2025 One Year
Governmental Activities
2023 Subscription-based IT arrangement 9/22/2022 1.85% $ 3,520,987 $ 2,577,582 $ (471,623) $ 2,105,959 $ 541,053
2023 Subscription-based IT arrangement 7/8/2022 1.85% 899,659 299,853 (299,853) - -
2023 Subscription-based IT arrangement 2/21/2023 1.85% 304,453 162,536 (102,100) 60,436 60,436
2023 Subscription-based IT arrangement 7/1/2022 1.85% 114,393 38,778 (38,778) - -
2022 Subscription-based IT arrangement 11/16/2021 1.85% 916,306 369,788 (183,200) 186,588 186,588
$ 5,755,798 $ 3,448,537 $ (1,095,554) $ 2,352,983 $ 788,077
The City's outstanding notes from direct borrowings and direct placements related to governmental activities of
$25,503,278 contains provisions that in an event of default, either by (1) unable to make principal or interest
payments (2) false or misrepresentation is made to the lender(3)become insolvent or make an assignment for
the benefit of its creditors (4)if the lender at any time in good faith believes that the prospect of payment of any
indebtedness is impaired. Upon the occurrence of any default event,the outstanding amounts,including accrued
interest become immediately due and payable.
The City permits employees to accumulate earned but unused vacation and compensatory time benefits,subject
to certain limitations. Certain bargaining unit employees are also permitted to accumulate earned but unused
sick leave. The City recognizes a liability for compensated absences for leave time that(1) has been earned for
services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent
years, and (3) is more likely than not to be used as time off or settled during or upon separation from
employment. The liability for compensated absences is reported as incurred in the government-wide and
proprietary fund financial statements. The liability for compensated absences includes salary and related
benefits,where applicable.
The City is self-insured for workers' compensation costs. The City estimates the liability for workers'
compensation claims that have been incurred through the end of the fiscal year,including those claims that have
been reported as well as those that have not yet been reported to the City. When appliable,the current portion
of this liability is accounted for in the General Fund with long-term liabilities accounted for in the Statement of
Net Position.
79
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS(continued)
The following is a summary of changes in long-term debt (including current portion) of the City for the year
ended June 30,2025.
Restated Amounts
Balance Balance Due Within
July 1,2024 Additions Deletions June 30,2025 One Year
Governmental Activities
General obligation bonds $ 230,753,750 $ $ (3,604,750) $ 227,149,000 $ 3,560,250
Notes from direct borrowings and direct placements
Installment purchase agreements 19,612,000 (1,465,000) 18,147,000 1,494,000
Lease payable - 385,798 (49,016) 336,782 73,884
Subscription-based IT arrangement payable 3,448,537 - (1,095,554) 2,352,983 788,077
Loans payable 5,279,173 (612,660) 4,666,513 570,183
259,093,460 385,798 (6,826,980) 252,652,278 6,486,394
Deferred amounts for issuance premiums 11,479,613 - (618,066) 10,861,547 -
Compensated absences* 11,075,958 2,338,153 - 13,414,111 1,365,498
Accrued workers compensation 3,153,293 1,793,735 (1,946,097) 3,000,931 640,542
$ 284,802,324 $ 4,517,686 $ (9,391,143) $ 279,928,867 $ 8,492,434
Business-type Activities
General obligation bonds $ 108,093,995 $ 13,475,923 $ (10,045,438) $ 111,524,480 $ 9,546,177
Revenue bonds 6,300,000 (1,575,000) 4,725,000 1,575,000
114,393,995 13,475,923 (11,620,438) 116,249,480 11,121,177
Deferred amounts
For issuance discounts (19,566) 1,957 (17,609) -
For issuance premiums 1,802,067 (170,517) 1,631,550 -
Compensated absences* 912,716 (11,567) 901,149 15,573
$ 117,089,212 $ 13,475,923 $ (11,800,565) $ 118,764,570 $ 11,136,750
Component Units
Brownfield Redevelopment Authority
Revenue bonds $ 38,365,000 $ $ (895,000) $ 37,470,000 $ 1,000,000
Direct borrowings and direct placements
Loan payable 237,790 (24,339) 213,451 25,312
38,602,790 (919,339) 37,683,451 1,025,312
Less unamortized discount on general
obligation bonds (686,496) 26,263 (660,233)
37,916,294 (893,076) 37,023,218 1,025,312
Tax Increment Financing Authority
General obligation bonds 28,165,000 (915,000) 27,250,000 1,615,000
Direct borrowings and direct placements
Contract payable 10,009,580 10,009,580
38,174,580 (915,000) 37,259,580 1,615,000
Add accreted interest on contract payable 1,748,653 390,209 (767,510) 1,371,352 1,242,510
39,923,233 390,209 (1,682,510) 38,630,932 2,857,510
Lansing Entertainment and Public Facilities Authority
Direct borrowings and direct placements
Leases payable 270,322 (43,882) 226,440 45,441
Total component units $ 78,109,849 $ 390,209 $ (2,619,468) $ 75,880,590 $ 3,928,263
*The change in compensated absences liability is presented as a net change.
80
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 9-LONG-TERM OBLIGATIONS(concluded)
Details applicable to the Component Units long-term obligations are readily available in their separate issued
financial statements and are not duplicated here in accordance with GASB 61.
Debt service requirements to maturity for the general obligation and revenue bonds of the City are as follows:
Year General Obligation Bonds Revenue Bonds
Ending Governmental Activities Business-Type Activities Business-Type Activities
June 30, Principal Interest Principal Interest Principal Interest
2025 $ 3,560,250 $ 9,051,759 $ 9,546,177 $ 2,012,406 $ 1,575,000 $ 145,688
2026 4,680,750 9,629,333 8,878,621 1,781,090 1,575,000 98,438
2027 5,098,800 9,429,404 8,217,546 1,566,762 1,575,000 49,218
2028 5,536,850 9,208,905 7,422,876 1,362,105 - -
2029 5,479,600 8,967,497 5,795,853 1,171,488
2030-2034 34,792,750 40,731,469 22,658,324 3,858,176
2035-2039 46,800,000 31,932,915 15,019,127 1,064,113
2040-2044 64,765,000 20,410,494 - -
2045-2049 51,275,000 5,636,629
2050-2051 5,160,000 321,614 -
$ 227,149,000 $ 145,320,019 $ 77,538,524 $ 12,816,140 $ 4,725,000 $ 293,344
Debt service requirements to maturity for the notes from direct borrowings and direct placements of the City
are as follows:
Direct Borrowings and
Year Direct Placements
Ending Governmental Activities
June 30, Principal Interest
2026 $ 2,926,144 $ 495,298
2027 2,698,316 473,426
2028 2,757,032 415,372
2029 2,812,020 355,706
2030 2,280,428 294,656
2031-2035 10,213,338 734,105
2036 1,816,000 26,804
$ 25,503,278 $ 2,795,367
Prior Year Defeased Debt
As of June 30,2025,defeased bonds related to the prior year refunding of the 2018 Building Authority Refunding
Bonds were still outstanding in the amount of$2,525,000. The defeased bonds are scheduled to be paid by the
escrow agent in installments through 2027.
81
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 10-FUND BALANCES-GOVERNMENTAL FUNDS
The City classifies fund balances based primarily on the extent to which it is bound to observe constraints
imposed upon the use of the resources reported in governmental funds. Detailed information on fund balances
of governmental funds is as follows:
State and Nonmajor
General Federal Public Safety Governmental
Fund Grants Capital Projects Funds Total
Fund Balances
Nonspendable
Inventory $ - $ $ - $ 1,858,900 $ 1,858,900
Prepaids 1,174,318 10,665 - 1,184,983
Corpus of permanent funds - - 2,234,014 2,234,014
Restricted
Major and local streets-public works 31,616,378 31,616,378
Drug law and narcotics enforcement-public safety 895,642 895,642
Debt service 12,804,583 12,804,583
Building department 3,948,841 3,948,841
Intergovernmental grants 655,962 655,962
Public safety 144,113,105 655,915 144,769,020
Capital projects - - 35,416,424 35,416,424
Stabilization arrangement 7,792,610 - 7,792,610
Committed
City parks - 546,042 546,042
Disaster contingency fund 288,568 288,568
Building department 328,998 328,998
Capital improvements - 6,094,407 6,094,407
Assigned-subsequent year's expenditures 67,000 - 67,000
Unassigned 20,956,351 20,956,351
TOTAL FUND BALANCES $ 29,990,279 $ - $ 144,123,770 $ 97,344,674 $ 271,458,723
NOTE 11 - NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of June 30,2025,was as follows:
Governmental Business-type Component
Activities Activities Units
Capital assets
Capital assets not being depreciated/amortized $ 86,860,079 $ 34,403,445 $
Capital assets being depreciated/amortized,net 211,923,744 320,543,854 6,701,925
Total capital assets 298,783,823 354,947,299 6,701,925
Related debt
General obligation bonds 227,149,000 111,524,480
Direct borrowing and direct placements - 226,440
Revenue bonds - 4,725,000 -
Installment purchase agreements(IPA) 18,147,000 -
Loans payable 4,666,513
Subscription-based IT arrangement payable 2,352,983
Lease payable 336,782
Unamortized bond discounts (17,609)
Unamortized bond premiums 10,861,547 1,631,550
Deferred charge on bond refunding (171,275) (3,053,624)
Capital related accounts payable (8,147,971)
Unspent bond proceeds-public safety (144,123,770)
Unspent bond proceeds-ovation (18,022,294) -
Total related debt 93,048,515 114,809,797 226,440
Net investment in capital assets $ 205,735,308 $ 240,137,502 $ 6,475,485
82
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 12 -SEGMENT INFORMATION-ENTERPRISE FUNDS
The government issued revenue bonds to finance certain improvements to its sewage disposal system. Because
the Sewage Disposal System,an individual fund that accounts entirely for the government's sewage activities,is
a segment and is reported as a major fund in the fund financial statements,separate segment disclosures herein
are not required.
NOTE 13 -RISK MANAGEMENT
The City of Lansing is exposed to various risks of loss that are covered by the City's policies, including losses
related to issues of cyber security, liability, errors and omissions, flood, boiler and machinery, property,
employee bonding, auto, crime, ERISA considerations, and employee injuries. The City carries commercial
insurance to cover these risks. Settled claims related to the commercial insurance have not exceeded the amount
of insurance coverage during the past three years.
The City is self-funded for Blue Cross Blue Shield healthcare coverage for employees and retirees. The City
maintains stop/loss coverage that limits its per-case exposure to$250,000. The City estimates healthcare claims
that are incurred but not reported as of year-end,which is accounted for in the City's Fringe Benefits Internal
Service Fund. Changes in the estimated liability were as follows:
Fiscal Year Ended June 30,
2025 2024
Estimated liability,beginning of year $ 1,500,590 $ 1,380,000
Estimated claims incurred,
including changes in estimates 15,172,697 16,236,132
Claim payments (14,931,421) (16,115,542)
Estimated liability,end of year $ 1,741,866 $ 1,500,590
The City is self-insured for workers' compensation costs. The City estimates the liability for workers'
compensation claims that have been incurred through the end of the fiscal year,including those claims that have
been reported as well as those that have not yet been reported to the City. When appliable,the current portion
of this liability is accounted for in the General Fund with long-term liabilities accounted for in the Statement of
Net Position. The City has liability insurance coverage up to a maximum amount of$17,500,000 per occurrence
with a$100,000 deductible. Changes in the estimated long-term liability as well as the total estimated cost of
claims for the past two fiscal years were as follows:
Fiscal Year Ended June 30,
2025 2024
Estimated liability,beginning of year $ 3,153,293 $ 2,989,432
Estimated claims incurred,
including changes in estimates 1,793,735 842,573
Claim payments (1,946,097) (678,712)
Estimated liability,end of year $ 3,000,931 $ 3,153,293
83
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 14-PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of the date they are levied. City,community college,
and 50%of school taxes are levied and due July land become delinquent after August 31. County taxes and the
balance of school taxes are levied and due December 1 and become delinquent after February 14. In March,
taxes on real property still delinquent are purchased by the County's tax revolving funds. Collections of
community college, school, and county taxes and remittances are accounted for in the general fund. City
property tax revenues are recognized in the fiscal year for which the taxes are levied to the extent that they
result in current receivables (i.e.,are collected within 60 days after fiscal year-end). The 2024 taxable value for
all properties within the City is$2,922,644,587. The City is permitted by charter and state law to levy taxes up
to $20.00 per $1,000 of assessed valuation for general operations other than the payment of principal and
interest on long-term debt. The tax rate to finance general governmental services other than the payment of
principal and interest on long-term debt for the year ended June 30, 2025 was $19.44 per $1,000 of taxable
value. Additionally,the City is permitted to levy taxes up to$3.90 and$0.26 per$1,000 of assessed valuation for
principal and interest on long-term debt and drain related debt,respectively,of which the City levied$3.50 and
$0.26,respectively per$1,000 of taxable value for the year ended June 30,2025.
NOTE 15 - CONTINGENT LIABILITIES
The City and its component units participate in a number of Federal and State assisted programs that are subject
to compliance audits. The audit of the Federal programs and the periodic program compliance audits of many
of the State programs have not yet been conducted, completed, or resolved. Accordingly, the City's and its
component units' compliance with applicable grant requirements will be established at some future date. The
amount,if any,of expenditures which may be disallowed by the granting agencies cannot be determined at this
time although the City and its component units expect such amounts,if any,to be immaterial.
There are various other legal actions pending against the City and its component units. Due to the inconclusive
nature of many of the actions, it is not possible for the City's Counsel to determine the probable outcome or a
reasonable estimate of the potential liability, if any. These actions, for which a reasonable estimate can be
determined of the potential liability,if any,are considered by the City and/or component unit management and
legal counsel to not have a material effect on the financial condition of the City.
NOTE 16 -PENSION PLANS
EMPLOYEES'RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Employees' Retirement System (the "Plan"), a single-employer, defined
benefit pension plan that covers general full-time employees of the City of Lansing,Michigan,and employees of
the 54-A District Court. It does not include elected officials,who are members of the Employees'Money Purchase
Pension Plan, nor does it include police officers and firefighters, who are members of a separate City defined
benefit pension plan. The Plan was established and may be amended by the City Council and is administered by
a nine-member Board of Trustees. The Board is comprised of the Mayor of the City, one member of the City
Council appointed by the City Council,the City Treasurer,the City Human Resources Director,three members of
the retirement system to be elected by the members of the system under rules adopted by the board, two
residents of the State of Michigan appointed by the Mayor, by and with the consent of the City Council, one of
which is a retiree of the retirement system. It is accounted for as a separate pension trust fund. Separate
financial statements are not issued for the Plan.
84
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Plan Description (concluded).
All members may retire at age 50 with 25 or more years of credited service, or age 58 with 8 or more years of
credited service. Members are vested after completing 8 years of credited service. Retirement options that
provide for survivor benefits are available to members. The plan also provides death and disability benefits. If
a member leaves employment or dies before vesting, accumulated member contributions plus interest are
refunded to the member or designated beneficiary. Members who are vested and terminate their employment
prior to retirement will receive their benefit as a life annuity beginning at age 58.
Summary of Significant Accounting Policies
The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period which the contributions are due. The City's contributions are
recognized when due and a formal commitment to provide the contribution has been made. Benefits and
refunds are recognized when due and payable in accordance with the terms of the Plan. Administration of the
Plan is funded through the Plan's investment earnings.
Method Used to Value Investments
Plan investments are reported at fair value. Short-term investments are reported at cost,which approximates
fair value. Securities traded on a national or international exchange are valued at the last reported sales price
at current exchange rates. Investments for which market quotations are not readily available are valued at their
fair values as determined by the custodian under the direction of the Plan Board of Trustees,with the assistance
of a valuation service.
Plan Membership
At December 31, 2024,plan membership consisted of the following:
Active members 431
Inactive members or beneficiaries receiving benefits 923
Inactive members not yet receiving benefits 242
Total employees covered by the Plan 1,596
Benefits Provided
Employees who retire with minimum age and years of service requirements are entitled to annual retirement
benefits, payable in monthly installments for life, in an amount equal to a percentage of their final average
compensation times years of credited service. Final average compensation is defined as the average of the
highest annual compensation paid over two consecutive years of credited service within the last 10 years of
credited service immediately preceding a member's termination of employment.
85
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Benefits Provided (concluded)
The benefit payments for the current plan are calculated using the following rates for the various groups of
general employees:
Multiplier
Bargaining Unit/Employee Group Percentage
United Auto Workers(UAW)
Hired after January 9,2017 1.50%
Hired after October 21,2013 1.70%
All others 2.75%
Teamsters Local 214
Hired after September 2012 1.25%
All others 1.80%
Teamsters Local 580
Hired after May 19,2014 1.25%
All others 1.80%
Non-bargaining and all others
Hired after April 1,2014 1.25%
All others 1.60%
District court exempt
Hired after June 1,2014 1.25%
All others 1.60%
Contributions
The contribution requirements of Plan members are established and may be amended by the City Council in
accordance with City policies,union contracts,and Plan provisions. Employees are required to make contributions
to the Plan in rates from 3.00 to 6.50% depending on bargaining unit and hire date. The City is required to
contribute at actuarially determined rates expressed as a percentage of covered payroll. The City's contribution
rate for the current plan for the year ended June 30,2025 was 47.88%of projected valuation payroll.
Contribution
Bargaining Unit/Employee Group Percentage
United Auto Workers(UAW) 3.00%
Teamsters Local 214
Hired after September 2012 5.00%
All others 6.50%
Teamsters Local 580
Hired after May 9,2014 5.00%
All others 6.35%
District court Teamsters
Hired after April 2014 5.00%
All others 5.50%
District court exempt 5.50%
All others 6.50%
86
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
is shown on the following pages.
Rate of Return
For the year ended June 30, 2025,the annual money-weighted rate of return on pension plan investments,net
of pension plan investment expense,was 12.61%for the changing amounts actually invested.
Concentrations
At June 30, 2025,the Plan held certain investments (other than those issued or explicitly guaranteed by the U.S.
government,mutual funds,external investment pools,or other pooled investments) in certain organizations that
represent 5%or more of the Plan's fiduciary net position. Please see Note 4 for the details of these concentrations.
Reserves
In accordance with the Plan policy,the City establishes reserves for various purposes. The reserves are adjusted
annually based on recommendations from the City's actuaries. The policy for creating and adjusting reserves
was established and can be amended by the Plan Board of Trustees. The market value change from December
31,2024 to June 30,2025,has been included in the Retirement reserve fund amount as it has not been allocated
to the other funds as of year-end. A summary of the Plan reserves at June 30,2025 is as follows:
Reserve/Group Balance
Employee savings fund $ 10,885,560
Retirement reserve fund 154,067,805
Members benefit fund 12,167,748
Health insurance fund 55,860,485
Net Pension Liability
The components of the net pension liability for the employees'retirement system at June 30,2025 were as follows:
Total Pension Liability $ 308,059,815
Plan Fiduciary Net Position 176,386,230
Net Pension Liability $ 131,673,585
Plan fiduciary net position as percentage
of total Pension Liability 57.26%
87
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31,2024,rolled forward to
June 30,2025,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Salary increases: Inflation,plus service-based increases.
Investment rate of return: 7.00%,net of investment expense,including inflation.
Mortality is based on the Pub2010S tables (below median), 50% for pre-retirement deaths. For Disabled
members, the disabled versions of these tables are used. Each of these tables is projected generationally
with Scale SSA(2020).
The actuarial assumptions used in the December 31, 2024 valuation were based on the 2015-2019 experience
study.
Assumption changes - there were no changes in actuarial assumptions during fiscal year 2025. More details
regarding actuarial assumptions can be found in the December 31,2024,valuation reports for each system.
Benefit changes-there were no changes to benefits in the current year.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimates of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation
process,by which a (downward) risk adjustment is applied to the baseline expected return. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as
of December 31,2024,and the final investment return assumption,are summarized in the following table:
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.90% 1.59%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 7.90% 0.32%
Fixed Income-U.S. 25.00% 2.40% 0.60%
Real Estate 10.00% 4.75% 0.48%
Global Opportunistic Fixed Income 6.00% 3.80% 0.23%
Global Equity Long/Short 10.00% 4.00% 0.40%
Absolute Return 6.00% 4.25% 0.26%
100.00% 4.60%
Inflation 2.50%
Risk adjustment -0.10%
Investment rate of return 7.00%
88
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES' RETIREMENT SYSTEM (continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to
determine the discount rate assumed that plan member contributions will be made at the current contribution
rate and that City contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, each plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members. Therefore,the
long-term expected rates of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
The components of the change in the net pension liability are summarized as follows:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a)-(b)
Balances at June 30,2024 $ 310,638,367 $ 164,586,317 $ 146,052,050
Changes for the Year
Service cost 3,086,827 - 3,086,827
Interest on total pension liability 21,107,684 - 21,107,684
Difference between expected and actual experience (1,980,044) - (1,980,044)
Employer contributions - 12,776,200 (12,776,200)
Employee contributions - 11536,435 (1,536,435)
Contributions-state grant - 2,361,715 (2,361,715)
Net investment income - 20,138,188 (20,138,188)
Benefit payments,including employee refunds (24,793,019) (24,793,019) -
Administrative expense - (219,606) 219,606
Net changes (2,578,552) 11,799,913 (14,378,465)
Balances as of June 30,2025 $ 308,059,815 $ 176,386,230 $ 131,673,585
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 7.00%,as well
as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower(6.00%) or 1-percentage-point higher(8.00%)than the current rate:
1%Decrease Current Rate 1%Increase
6.00% 7.00% 8.00%
Net pension liability $ 159,650,769 $ 131,673,585 $ 105,936,065
89
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
EMPLOYEES'RETIREMENT SYSTEM (concluded)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30,2025,the City recognized ERS pension expense of$9,295,096. At June 30,2025,the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 310,476 $ 1,320,029
Net difference between projected and actual earnings
on pension plan investments - 2,592,740
Total $ 310,476 $ 3,912,769
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will
be recognized in pension expense as follows:
Year Ending Pension
June 30, Expense
2026 $ 3,458,188
2027 (2,281,540)
2028 (2,987,258)
2029 (1,791,683)
$ (3,602,293)
At June 30,2025,the City did not have any outstanding contributions to the pension plan required for the year
ended June 30,2025.
POLICE AND FIRE RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Police and Fire Retirement System (the "Plan"), a single-employer,
defined benefit pension plan that covers all police officers and fire fighters who are full-time employees of the
City. The Plan was established and may be amended by the City Council and is administered by an eight-member
Board of Trustees. The Board is comprised of the Mayor of the City,one member of the City Council appointed
by the City Council,the City Treasurer,a resident of the City who shall be appointed by the Mayor,by and with
the consent of Council,two members each of the police and fire departments,to be elected by all the members
of their respective departments. It is accounted for as a separate pension trust fund. Separate financial
statements are not issued for the Plan.
90
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Plan Description (concluded)
Members may retire at age 55,or at any age with 25 or more years of credited service. Members are vested after
completing 10 years of credited service. Members are required to retire at age 60 (Police) or 70 (Fire). When
an employee who had retired subsequent to August 31, 1966, dies,the plan provides for an automatic pension
to the retiree's spouse. This automatic pension is equal to 50% of the regular retirement benefit the employee
had been receiving at time of death. Effective July 30, 1990, members may elect a reduced benefit,either 93%
or 86% of the regular benefit, thereby increasing the spouse pension to 75% or 86% of the regular benefit,
respectively. Alternately, members may elect a non-spousal beneficiary option. The plan provides death and
disability benefits. If a member leaves employment or dies before vesting,accumulated member contributions
plus interest are refunded to the member or designated beneficiary. Members who are vested and terminate
their employment have the option of deferred retirement benefits until age 55 or withdrawing their
contribution,thereby forfeiting any future benefits.
Summary of Significant Accounting Policies
The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period which the contributions are due. The City's contributions are
recognized when due and a formal commitment to provide the contribution has been made. Benefits and
refunds are recognized when due and payable in accordance with the terms of the Plan. Administration of the
Plan is funded through the Plan's investment earnings.
Method Used to Value Investments
Plan investments are reported at fair value. Short-term investments are reported at cost,which approximates
fair value. Securities traded on a national or international exchange are valued at the last reported sales price
at current exchange rates. Investments for which market quotations are not readily available are valued at their
fair values as determined by the custodian under the direction of the Plan Board of Trustees,with the assistance
of a valuation service.
Plan Membership
At December 31,2024,plan membership consisted of the following:
Active members 353
Inactive members or beneficiaries receiving benefits 826
Inactive members not yet receiving benefits 95
Total employees covered by the Plan 1,274
91
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Benefits Provided
Annual retirement allowances are determined by multiplying final average compensation by 3.2% for the first
25 years of credited service. The maximum allowance is 80%of final average compensation. Pension benefit is
capped at 110% of base wage for IAFF and CCLP-NS and 115% for CCLP-Supervisors. Benefit multiplier is
changed to 2.5%and pension benefit is capped at 100%of base wage for hires on or after May 19,2014,for IAFF
and August 1,2014,for CCLP-NS.
Contributions
The contribution requirements of plan members are established and may be amended by the City Council in
accordance with City policies, union contracts, and Plan provisions. Fire members are required to contribute
10.0% of their annual wages to the plan, fire members hired after May 19, 2014, are required to contribute
7.00%. Police supervisors are required to contribute 9.52%,police non-supervisors are required to contribute
9.0%,and police non-supervisors hired after August 1, 2014,are required to contribute 7.00%. Chapter 294 of
the City of Lansing's Ordinance establishes benefit provisions and requires that the portion of the annuity and
pension reserves (which are determined annually by the City's actuary) not financed by member contributions
shall be financed by annual appropriations. The City's contribution rate for the plan for the year ended June 30,
2025 was 73.11%of projected valuation payroll.
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
is shown on the following pages.
Rate of Return
For the year ended June 30, 2025,the annual money-weighted rate of return on pension plan investments,net
of pension plan investment expense, was 12.48%. The money-weighted rate of return expresses investment
performance,net of investment expense,adjusted for the changing amounts actually invested.
Concentrations
At June 30,2025,the Plan held certain investments (other than those issued or explicitly guaranteed by the U.S.
government,mutual funds,external investment pools,or other pooled investments)in certain organizations that
represent 5% or more of the Plan's fiduciary net position. Please see Footnote 4 for the details of these
concentrations.
92
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Reserves
In accordance with the Plan policy,the City establishes reserves for various purposes. The reserves are adjusted
annually based on recommendations from the City's actuaries. The policy for creating and adjusting reserves
was established and can be amended by the Plan Board of Trustees. The market value change from December
31,2024 to June 30,2025,has been included in the Retirement reserve fund amount as it has not been allocated
to the other funds as of year-end. A summary of the Plan reserves at June 30,2025 is as follows:
Reserve/Group Balance
Retirement reserve fund $ 304,699,359
Employee savings fund 24,427,503
Health insurance fund 76,998,899
Net Pension Liability
The components of the net pension liability for the police and fire retirement system at June 30, 2025,were as
follows:
Total Pension Liability $ 556,274,583
Plan Fiduciary Net Position 327,973,238
Net Pension Liability $ 228,301,345
Plan fiduciary net position as percentage
of total Pension Liability 58.96%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31,2024,rolled forward to
June 30,2025,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Salary increases: Inflation,plus service-based increases.
Investment rate of return: 7.00%,net of investment expense,including inflation.
Mortality is based on the Pub2010S(below median),50%for pre-retirement deaths. For Disabled members,
the disabled version of these tables is used. Each of these tables is projected generationally with Scale SSA
(2020).
The actuarial assumptions used in the December 31, 2024 valuation were based on the 2015-2019 experience
study.
93
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16-PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Actuarial Assumptions (concluded)
Assumption changes - there were no changes in actuarial assumptions during fiscal year 2025. More details
regarding actuarial assumptions can be found in the December 31,2024,valuation reports for each system.
Benefit changes-there were no changes to benefits in the current year.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimates of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation
process, by which a (downward) risk adjustment is applied to the baseline expected return. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as
of December 31,2024,and the final investment return assumption,are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.90% 1.59%
International Equity- Developed 12.00% 6.10% 0.73%
International Equity- Emerging 4.00% 7.90% 0.32%
Fixed Income-U.S. 25.00% 2.40% 0.60%
Real Estate 10.00% 4.75% 0.48%
Global Opportunistic Fixed Income 6.00% 3.80% 0.23%
Global Equity Long/Short 10.00% 4.00% 0.40%
Absolute Return 6.00% 4.25% 0.26%
100.00% 4.60%
Inflation 2.50%
Risk adjustment -0.10%
Investment rate of return 7.00%
94
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to
determine the discount rate assumed that plan member contributions will be made at the current contribution
rate and that City contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, each plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members. Therefore,the
long-term expected rates of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
The components of the change in the net pension liability are summarized as follows:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a)-(b)
Balances at June 30,2024 $ 537,677,193 $ 305,694,169 $ 231,983,024
Changes for the Year
Service cost 7,449,286 - 7,449,286
Interest on total pension liability 36,785,873 - 36,785,873
Difference between expected and actual experience 13,590,233 - 13,590,233
Employer contributions - 21,648,376 (21,648,376)
Employee contributions - 31275,511 (3,275,511)
Net investment income - 36,900,141 (36,900,141)
Benefit payments,including employee refunds (39,228,002) (39,228,002) -
Administrative expense - (316,957) 316,957
Net changes 18,597,390 22,279,069 (3,681,679)
Balances as of June 30,2025 $ 556,274,583 $ 327,973,238 $ 228,301,345
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 7.00%,as well
as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower(6.00%) or 1-percentage-point higher(8.00%)than the current rate:
1%Decrease Current Rate 1%Increase
6.00% 7.00% 8.00%
Net pension liability $ 288,633,004 $ 228,301,345 $ 173,707,937
95
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (concluded)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City recognized Police and Fire Retirement System pension expense of
$28,053,045. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 19,279,168 $ -
Net difference between projected and actual earnings
on pension plan investments - 9,190,525
Total $ 19,279,168 $ 9,190,525
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will
be recognized in pension expense as follows:
Year Ending Pension
June 30, Expense
2026 $ 15,807,512
2027 509,945
2028 (2,988,377)
2029 (3,240,437)
$ 10,088,643
At June 30,2025,the City did not have any outstanding amount of contributions to the pension plan required for
the year ended June 30,2025.
For governmental activities,pension liabilities are expected to be liquidated by the general fund.
Detailed information about the pension plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of Note 17.
96
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 16 - PENSION PLANS (concluded)
SUMMARY PENSION INFORMATION
The table below summarizes the net pension liability and related deferrals for the Employees' Retirement
System and the Police and Fire Retirement System as presented in the Statement of Net Position.
Employees' Police and Fire
Retirement Retirement
System System Total
Net pension liability $ 131,673,585 $ 228,301,345 $ 359,974,930
Deferred outflows-pension 310,476 19,279,168 19,589,644
Deferred inflows-pension 3,912,769 9,190,525 13,103,294
Pension expense 9,295,096 28,053,045 37,348,141
EMPLOYEES'MONEY PURCHASE PENSION PLAN
Newly hired employees are eligible to participate in the City's defined contribution plan. Eligible employees
include those normally scheduled to work at least 1,000 hours during a plan year. To receive benefits under the
plan,the participant must have met the age and service requirements outlined in his or her applicable bargaining
unit agreement. Distributions are calculated based on the employee's vesting percentage and the individual's
allocation of investment funds. In accordance with the Plan agreement,the City contributes 4% of employees'
base pay to the plan. The defined contribution plan is administered by the Board of Trustees as designed in the
City of Lansing Defined Contribution Plan which stipulates that the trustees have such authority. All
amendments to the plan, including funding requirements, must be approved by the City Council subject to the
terms of collective bargaining agreements. City contributions for the year ended June 30, 2025 were$175,607
for plan members. Employee contributions for the year ended June 30, 2025 were $664,948. All amendments
to the Plan, including funding requirements, must be approved by the City Council. The assets of the plan are
held in trust for the exclusive benefit of participants and their beneficiaries.
NOTE 17 -OTHER POSTEMPLOYMENT BENEFITS
PRIMARY GOVERNMENT
Plan Description
The City of Lansing contributes to the Employees' Retirement System, the Police and Fire Retirement System,
and the Voluntary Employees Beneficiary Association amounts to pre-fund postemployment healthcare. In the
Employees'Retirement System and the Police and Fire Retirement System,these other postemployment benefits
(OPEB)are set up as reserves in the pension plans,and their investments are commingled with the investments
of the pension plan. Portfolio makeup is reported as a percentage of total pension plan assets. Earnings are
calculated based on a seven-year smoothed rate of return of the retirement systems. Eligible participants
include any retirees who receive pension benefits under their respective pension plans,with the exception of
Teamster 580 employees hired after May 2014. OPEB plan provisions are established and may be amended by
the City Council, subject to the City's various collective bargaining agreements. Separate financial statements
are not prepared for the plans.
97
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
PRIMARY GOVERNMENT (concluded)
Method Used to Value Investments
Plan investments are reported at fair value. Securities traded on a national or international exchange are valued
at the last reported sales price at current exchange rates. Investments for which market quotations are not
readily available are valued at their fair values as determined by the custodian under the direction of each plans'
board of trustees,with the assistance of a valuation service.
VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION (VEBA)
Plan Description
The City of Lansing Voluntary Employees Beneficiary Association (the "Plan") is a single employer defined
benefit postemployment healthcare plan established by the City to provide medical and healthcare benefits for
retirees and their beneficiaries. Eligible participants include any retirees who receive pension benefits under
one of the City's pension plans. The Plan is funded by a trust agreement established pursuant to Section
501(c)(9)of the Internal Revenue Code that allows for the formation of a VEBA. It is accounted for as a separate
OPEB trust fund.
Membership of the Plan consisted of the following at January 1, 2024, the date of the most recent actuarial
valuation:
Active members 341
Inactive members or beneficiaries receiving benefits 28
Inactive members not yet receiving benefits 56
Total 425
Benefits Provided
The City provides the full cost of health benefits to retirees,payable to health care vendors,and also reimburses
retirees eligible for Medicare benefits of$134.00 per month for each covered retiree and eligible dependent(s)
eligible for retiree healthcare. The payments are charged to the fringe benefit internal service fund of the City
and are recognized as expenses as payments are made.
Contributions
The contribution requirements of the Plan members and the City are established and may be amended by the
City Council, in accordance with City policies, union contracts, and Plan provisions. Retirees and their
beneficiaries are eligible for postemployment healthcare benefits if they qualify under the various contracts.
The required contribution is based on projected pay-as-you-go financing requirements, with an additional
amount to prefund benefits as determined through the bi-annual actuarial valuation. For the year ended June
30,2025,the City contributed$2,009,261 to the Plan.
98
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 -OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION (VEBA) (continued)
Rate of Return
For the year ended June 30, 2025,the annual money-weighted rate of return on investments,net of investment
expense,was 10.21%. The money-weighted rate of return expresses investment performance,net of investment
expense,adjusted for the changing amounts actually invested.
Net OPEB Liability of the City
The components of the net OPEB liability of the City at June 30, 2025,were as follows:
Total OPEB Liability $ 60,993,919
Plan Fiduciary Net Position 51,777,011
Net OPEB Liability $ 9,216,908
Plan fiduciary net position as
percentage of total OPEB liability 84.89%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to June
30, 2025,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables, with below median and
headcount weighted,projected generationally using MP-2021.
The actuarial assumptions used in the January 1,2024,valuation were based on the 2015-2019 experience study.
Assumption changes-there were no changes of assumptions in 2025.
Benefit changes-there were no changes to benefits in 2025.
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
as of June 30,2025 is summarized in the table on the following page.
99
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES'BENEFICIARY ASSOCIATION (VEBA) (continued)
Investment Policy_(concludedl
The long-term expected rate of return on OPEB plan investments was determined using a building-block method
in which best-estimates of expected future real rates of return (expected returns,net of OPEB plan investment
expense and inflation)are developed for each asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation process,
by which a(downward)risk adjustment is applied to the baseline expected return. Best estimates of arithmetic
real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30,
2025 are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.90% 1.59%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 7.90% 0.32%
Fixed Income-U.S. 25.00% 2.40% 0.60%
Real Estate 10.00% 4.75% 0.48%
Global Opportunistic Fixed Income 6.00% 3.80% 0.23%
Global Equity Long/Short 10.00% 4.00% 0.40%
Absolute Return 6.00% 4.25% 0.26%
100.00% 4.60%
Inflation 2.50%
Risk adjustment -0.10%
Investment rate of return 7.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.00%. The City's funding expectations/policy is
to contribute a percentage of payroll each year to their OPEB trust, in addition to paying the annual benefits
directly. The City has also assumed that benefits will begin being paid from trust assets once the funding ratio
exceeds 90%. Based on this information,the City projects that benefits will be available to make all projected
future benefit payments of current plan members.
100
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES'BENEFICIARY ASSOCIATION (VEBA) (continued)
Discount Rate (concluded)
The components of the change in the net OPEB liability are summarized as follows:
Calculating the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30,2024 $ 57,744,273 $ 45,008,901 $ 12,735,372
Changes for the year
Service cost 830,825 - 830,825
Interest on total OPEB liability 4,958,390 - 4,958,390
Difference between expected and
actual return on investments (2,539,569) - (2,539,569)
Employer contributions 2,009,261 (2,009,261)
Net investment income 4,938,931 (4,938,931)
Administrative expense - (180,082) 180,082
Net changes 3,249,646 6,768,110 (3,518,464)
Balances as of June 30,2025 $ 60,993,919 $ 51,777,011 $ 9,216,908
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City,calculated using the discount rate of 7.00%,as well as
what the City's net OPEB liability would be if it were calculated using a discount rate that is 1%lower (6.00%)
or 1%higher(8.00%)than the current rate:
1%Decrease Current 1% Increase
6.00% Discount Rate 8.00%
Net OPEB liability $ 13,344,880 $ 9,216,908 $ 5,821,198
101
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 -OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION (VEBA) (continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption
The following presents the net OPEB liability of the City, calculated using the healthcare cost trend rate of 4.5%
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that
are 1%lower(3.5%) or 1%higher(5.5%) than the current healthcare cost trend rates:
Healthcare
1%Decrease Ultimate Cost 1%Increase
3.50% Trend Rate 5.50%
Net OPEB liability $ 5,676,076 $ 9,216,908 $ 13,502,643
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expense of$448,010. At June 30, 2025, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ - $ 3,292,733
Net difference between projected and actual
earnings on plan investments - 854,124
Total $ - $ 4,146,857
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ending OPEB
June 30, Expense
2026 $ (1,841,597)
2027 (1,855,931)
2028 (274,934)
2029 (174,395)
$ (4,146,857)
102
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
VOLUNTARY EMPLOYEES'BENEFICIARY ASSOCIATION (VEBA) (concluded)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of this note disclosure.
At June 30,2025,the City reported no amount payable to the OPEB plan.
EMPLOYEES'RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Employees'Retirement System OPEB Plan(the"Plan"),a single-employer,
defined benefit OPEB plan that provides postemployment health care benefits, in accordance with labor
agreements, to full-time employees of the City and employees of the 54-A District Court (not including police
officers and firefighters who are members of the Police and Fire Retirement System). Members eligible for
pension benefits under the Employees' Retirement System are also eligible to receive health care benefits,with
the exception of Teamster 580 employees hired after May 2014. The Plan was established and may be amended
by the City Council and is administered by a nine-member Board of Trustees. The Board is comprised of the
Mayor of the City, one member of the City Council appointed by the City Council, the City Treasurer, the City
Human Resources Director,three members of the retirement system to be elected by the members of the system
under rules adopted by the board,two residents of the State of Michigan appointed by the Mayor,by and with
the consent of the City Council,one of which is a retiree of the retirement system. It is accounted for as a separate
OPEB trust fund.
Membership of the Plan consisted of the following at January 1, 2024, the date of the most recent actuarial
valuation:
Active members 362
Inactive members or beneficiaries receiving benefits 57
Inactive members not yet receiving benefits 772
Total 1,191
Benefits Provided
The City provides the full cost of health benefits to retirees,payable to health care vendors,and also reimburses
retirees eligible for Medicare benefits of$134.00 per month for each covered retiree and eligible dependent(s)
eligible for retiree healthcare. The payments are charged to the fringe benefit internal service fund of the City
and are recognized as expenses as payments are made.
103
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 -OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Contributions
The contribution requirements of the Plan members and the City are established and may be amended by the
City Council, in accordance with City policies, union contracts, and Plan provisions. Retirees and their
beneficiaries are eligible for postemployment healthcare benefits if they qualify under the various contracts.
The required contribution is based on projected pay-as-you-go financing requirements, with an additional
amount to prefund benefits as determined through the bi-annual actuarial valuation. For the year ended June
30, 2025, the City contributed $14,390,709 (direct benefit payments of$8,449,770 and City contributions of
$5,940,939) to the Plan.
Rate of Return
For the year ended June 30, 2025,the annual money-weighted rate of return on investments,net of investment
expense,was 7.02%. The money-weighted rate of return expresses investment performance,net of investment
expense,adjusted for the changing amounts actually invested.
Net OPEB Liability of the City
The components of the net OPEB liability of the City at June 30, 2025,were as follows:
Total OPEB Liability $ 88,032,559
Plan Fiduciary Net Position 56,595,368
Net OPEB Liability $ 31,437,191
Plan fiduciary net position as
percentage of total OPEB liability 64.29%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to June
30, 2025,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables, with below median and
headcount weighted,projected generationally using MP-2021.
The actuarial assumptions used in the January 1,2024,valuation were based on the 2015-2019 experience study.
Assumption changes-there were no changes of assumptions in 2025.
Benefit changes-there were no changes to benefits in 2025.
104
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
as of June 30,2025 is summarized in the table on the following page.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method
in which best-estimates of expected future real rates of return (expected returns,net of OPEB plan investment
expense and inflation)are developed for each asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation process,
by which a(downward)risk adjustment is applied to the baseline expected return. Best estimates of arithmetic
real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30,
2025 are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.90% 1.59%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 7.90% 0.32%
Fixed Income-U.S. 25.00% 2.40% 0.60%
Real Estate 10.00% 4.75% 0.48%
Global Opportunistic Fixed Income 6.00% 3.80% 0.23%
Global Equity Long/Short 10.00% 4.00% 0.40%
Absolute Return 6.00% 4.25% 0.26%
100.00% 4.60%
Inflation 2.50%
Risk adjustment -0.10%
Investment rate of return 7.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.00%. The City's funding expectations/policy is
to contribute a percentage of payroll each year to their OPEB trust, in addition to paying the annual benefits
directly. The City has also assumed that benefits will begin being paid from trust assets once the funding ratio
exceeds 90%. Based on this information,the City projects that benefits will be available to make all projected
future benefit payments of current plan members.
105
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 -OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Discount Rate (concluded)
The components of the change in the net OPEB liability are summarized as follows:
Calculating the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30,2024 $ 92,930,271 $ 47,504,025 $ 45,426,246
Changes for the year
Service cost 908,142 - 908,142
Interest on total OPEB liability 5,419,816 - 5,419,816
Difference between expected and
actual return on investments (2,775,900) - (2,775,900)
Employer contributions - 14,390,709 (14,390,709)
Net investment income - 3,653,498 (3,653,498)
Benefit payments (8,449,770) (8,449,770) -
Administrative expense - (503,094) 503,094
Net changes (4,897,712) 9,091,343 (13,989,055)
Balances as of June 30,2025 $ 88,032,559 $ 56,595,368 $ 31,437,191
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, calculated using the discount rate of 7.00%,as well as
what the City's net OPEB liability would be if it were calculated using a discount rate that is 1% lower (6.00%)
or 1%higher(8.00%)than the current rate:
1% Decrease Current 1%Increase
6.00% Discount Rate 8.00%
Net OPEB liability $ 45,516,949 $ 31,437,191 $ 19,855,044
106
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 -OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption
The following presents the net OPEB liability of the City, calculated using the healthcare cost trend rate of 4.5%
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that
are 1%lower(3.5%) or 1%higher(5.5%) than the current healthcare cost trend rates:
Healthcare
1% Decrease Ultimate Cost 1% Increase
3.50% Trend Rate 5.50%
Net OPEB liability $ 19,360,060 $ 31,437,191 $ 46,055,050
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expense of$485,345. At June 30, 2025, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ - $ 3,599,154
Net difference between projected and actual
earnings on plan investments - 933,608
Total $ - $ 4,532,762
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ending OPEB
June 30, Expense
2026 $ (2,012,976)
2027 (2,028,643)
2028 (300,520)
2029 (190,623)
$ (4,532,762)
107
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
EMPLOYEES'RETIREMENT SYSTEM (concluded)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of this note disclosure.
At June 30,2025,the City reported no amount payable to the OPEB plan.
POLICE AND FIRE RETIREMENT SYSTEM
Plan Description
The City sponsors and administers the Police and Fire Retirement System OPEB Plan (the "Plan"), a single-
employer, defined benefit OPEB plan that provides postemployment health care benefits, in accordance with
labor agreements,to members who are eligible to receive pension benefits under the Police and Fire Retirement
System. The Plan was established and may be amended by the City Council and is administered by an eight-
member Board of Trustees. The Board is comprised of the Mayor of the City, one member of the City Council
appointed by the City Council,the City Treasurer,a resident of the City who shall be appointed by the Mayor,by
and with the consent of Council,two members each of the police and fire departments,to be elected by all the
members of their respective departments.
Membership of the Plan consisted of the following at January 1, 2024, the date of the most recent actuarial
valuation:
Active members 253
Inactive members or beneficiaries receiving benefits 12
Inactive members not yet receiving benefits 731
Total 996
Benefits Provided
The City provides the full cost of health benefits to retirees,payable to health care vendors,and also reimburses
retirees eligible for Medicare benefits of$121.90 per month for each covered retiree and dependent(s). The
payments are charged to the fringe benefit internal service fund of the City and are recognized as expenses as
payments are made.
108
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Contributions
The contribution requirements of the Plan members and the City are established and may be amended by the
City Council, in accordance with City policies, union contracts, and Plan provisions. Retirees and their
beneficiaries are eligible for postemployment healthcare benefits if they qualify under the various contracts.
The required contribution is based on projected pay-as-you-go financing requirements, with an additional
amount to prefund benefits as determined through the bi-annual actuarial valuation. For the year ended June
30, 2025, the City contributed $27,808,338 (direct benefit payments of$12,287,069 and City contributions of
$15,521,269) to the Plan.
Rate of Return
For the year ended June 30, 2025,the annual money-weighted rate of return on investments,net of investment
expense,was 6.29%. The money-weighted rate of return expresses investment performance,net of investment
expense,adjusted for the changing amounts actually invested.
The components of the net OPEB liability of the City at June 30, 2025,were as follows:
Total OPEB Liability $ 222,315,037
Plan Fiduciary Net Position 78,152,523
Net OPEB Liability $ 144,162,514
Plan fiduciary net position as
percentage of total OPEB liability 35.15%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to June
30, 2025,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables, with below median and
headcount weighted,projected generationally using MP-2021.
The actuarial assumptions used in the January 1,2024,valuation were based on the 2015-2019 experience study.
Assumption changes-there were no changes of assumptions in 2025.
Benefit changes-there were no changes to benefits in 2025.
109
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Investment Policy
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the Board
of Trustees. The investment policy has been formulated based on consideration of a wide range of policies and
describes the prudent investment process that the Board deems appropriate. The Plan's asset allocation policy
as of June 30,2025 is summarized in the table below.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method
in which best-estimates of expected future real rates of return (expected returns,net of OPEB plan investment
expense and inflation)are developed for each asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. This is then modified through a Monte-Carlo simulation process,
by which a(downward)risk adjustment is applied to the baseline expected return. Best estimates of arithmetic
real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30,
2025 are summarized in the following table:
Long-term
Target Expected Real Money-Weighted
Asset Class Allocation Rate of Return Rate of Return
Domestic Equity 27.00% 5.90% 1.59%
International Equity-Developed 12.00% 6.10% 0.73%
International Equity-Emerging 4.00% 7.90% 0.32%
Fixed Income-U.S. 25.00% 2.40% 0.60%
Real Estate 10.00% 4.75% 0.48%
Global Opportunistic Fixed Income 6.00% 3.80% 0.23%
Global Equity Long/Short 10.00% 4.00% 0.40%
Absolute Return 6.00% 4.25% 0.26%
100.00% 4.60%
Inflation 2.50%
Risk adjustment -0.10%
Investment rate of return 7.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.00%. The City's funding expectations/policy is
to contribute a percentage of payroll each year to their OPEB trust, in addition to paying the annual benefits
directly. The City has assumed that benefits will be paid from trust assets once the funding ratio exceeds 90%,
and until the fund is depleted. Based on this information,the City projects that benefits will be available to make
all projected future benefit payments of current plan members.
110
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Discount Rate (concluded)
The components of the change in the net OPEB liability are summarized as follows:
Calculating the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at June 30,2024 $ 210,547,076 $ 59,469,018 $ 151,078,058
Changes for the year
Service cost 1,220,106 - 1,220,106
Interest on total OPEB liability 14,400,929 - 14,400,929
Difference between expected and
actual return on investments 8,433,995 - 8,433,995
Employer contributions - 27,808,338 (27,808,338)
Net investment income - 4,326,161 (4,326,161)
Benefit payments (12,287,069) (12,287,069) -
Administrative expense - (1,163,925) 1,163,925
Net changes 11,767,961 18,683,505 (6,915,544)
Balances as of June 30,2025 $ 222,315,037 $ 78,152,523 $ 144,162,514
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, calculated using the discount rate of 7.00%,as well as
what the City's net OPEB liability would be if it were calculated using a discount rate that is 1% lower (6.00%)
or 1%higher(8.00%)than the current rate:
1%Decrease Current 1%Increase
6.00% Discount Rate 8.00%
Net OPEB liability $ 172,054,783 $ 144,162,514 $ 121,445,569
111
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption
The following presents the net OPEB liability of the City,calculated using the healthcare cost trend rate of 4.5%
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that
are 1%lower(3.5%) or 1%higher(5.5)than the current healthcare cost trend rates:
Healthcare
1%Decrease Ultimate Cost 1% Increase
3.50% Trend Rate 5.50%
Net OPEB liability $ 120,313,253 $ 144,162,514 $ 173,294,331
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025,the City recognized OPEB expense of$13,918,937. At June 30, 2025,the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 6,325,496 $ 4,858,185
Net difference between projected and actual
earnings on plan investments 415,387 -
Total $ 6,740,883 $ 4,858,185
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ending OPEB
June 30, Expense
2026 $ 1,884,388
2027 (319,715)
2028 11462,245
2029 (11144,220)
$ 1,882,698
112
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17 - OTHER POSTEMPLOYMENT BENEFITS (continued)
POLICE AND FIRE RETIREMENT SYSTEM (concluded)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the combining statements for
the pension and other postemployment benefit trust funds presented in the other supplementary information
section of this report and at the end of this note disclosure.
At June 30,2025,the City reported no amount payable to the OPEB plan.
For governmental activities, other postemployment benefit liabilities are expected to be liquidated by the
general fund.
SUMMARY OPEB INFORMATION
The table below summarizes the net OPEB liability and related deferrals for the Employees' Retirement System
and the Police and Fire Retirement System as presented in the Statement of Net Position.
Retiree Employees' Police and Fire
Healthcare Retirement Retirement
VEBA System System Total
Net OPEB liability $ 9,216,908 $ 31,437,191 $ 144,162,514 $ 184,816,613
Deferred outflows-OPEB - - 6,740,883 6,740,883
Deferred inflows-OPEB 4,146,857 4,532,762 4,858,185 13,537,804
OPEB expense 448,010 485,345 13,918,937 14,852,292
Financial statements for individual pension and employee benefit plans:
Pension and Other Postemployment Benefits Trust Funds
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
ASSETS
Cash and cash equivalents $ 4,457,121 $ 1,430,114 $ 14,136,413 $ 3,368,556 $ - $ 1,039,681 $ 24,431,885
Investments
Mutual funds 124,468,786 39,922,498 228,301,996 54,401,928 9,040,140 48,933,819 505,069,167
Domestic equities 42,648,125 13,684,097 81,541,435 19,430,454 - - 157,304,111
International equities 766,666 245,993 1,471,408 350,621 - 2,834,688
Emerging market equities 10,369,174 3,327,058 15,834,950 3,773,300 677,266 33,981,748
Money market funds 2,706,196 882,926 4,227,409 1,007,346 1,126,245 9,950,122
Dividends and interest receivable 69,592 22,329 83,706 19,946 195,573
TOTAL ASSETS 185,485,660 59,515,015 345,597,317 82,352,151 9,040,140 51,777,011 733,767,294
LIABILITIES
Accounts payable 116,442 37,361 342,864 81,699 - - 578,366
Due to other governmental units 8,982,988 2,882,286 17,281,215 4,117,929 4,653 33,269,071
TOTAL LIABILITIES 9,099,430 2,919,647 17,624,079 4,199,628 4,653 33,847,437
NET POSITION
Restricted for:
Pension benefits 176,386,230 - 327,973,238 - 9,035,487 - 513,394,955
Other postemployment benefits 56,595,368 78,152,523 51,777,011 186,524,902
TOTAL NET POSITION $ 176,386,230 $ 56,595,368 $ 327,973,238 $ 78,152,523 $ 9,035,487 $ 51,777,011 $ 699,919,857
113
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 17-OTHER POSTEMPLOYMENT BENEFITS (concluded)
Financial statements for individual pension and employee benefit plans (concluded):
Changes in Pension and Other Postemployment Benefits Net Position
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
ADDITIONS
Investment income
Net appreciation(decrease)in fair
value of investments $ 20,474,055 $ 3,6S3,498 $ 37,733,484 $ 4,326,161 $ 1,545,958 $ 3,9S4,359 $ 71,687,515
Interest income(loss) 231,624 (26,976) - - 984,572 1,189,220
Investment expenses (567,491) (806,367) (1,373,858)
Net investment income 20,138,188 3,653,498 36,900,141 4,326,161 1,545,958 4,938,931 71,502,877
Contributions
Employer 12,776,200 14,390,709 21,648,376 27,808,338 175,607 2,009,261 78,808,491
Nonemployer 2,361,715 - - - - - 2,361,715
Plan members 1,536,435 3,275,511 664,948 5,476,894
Total contributions 16,674,350 14,390,709 24,923,887 27,808,338 840,555 2,009,261 86,647,100
TOTAL ADDITIONS 36,812,538 18,044,207 61,824,028 32,134,499 2,386,513 6,948,192 158,149,977
DEDUCTIONS
Participant benefits 24,793,019 8,449,770 39,228,002 12,287,069 - - 84,757,860
Administrative expense 219,606 503,094 316,957 1,163,925 1,055,061 180,082 3,438,725
TOTAL DEDUCTIONS 25,012,625 8,952,864 39,544,959 13,450,994 1,055,061 180,082 88,196,585
CHANGE IN NET POSITION 11,799,913 9,091,343 22,279,069 18,683,505 1,331,452 6,768,110 69,953,392
NET POSITION
Restricted for pension and other
postemployment benefits
Beginning of year 164,586,317 47,504,025 305,694,169 59,469,018 7,704,035 45,008,901 629,966,465
End of year $ 176,386,230 $ 56,595,368 $ 327,973,238 $ 78,152,523 $ 9,035,487 $ 51,777,011 $ 699,919,857
NOTE 18 -TAX ABATEMENTS
Because Lansing is an older city, vacant land, or "green space" for new buildings is scarce, the City offers tax
abatements to make redevelopment and rehabilitation of existing buildings economically viable for developers,
who must consider the cost of rehabilitating existing, often older, buildings which may involve environmental
remediation,against the generally lesser cost of building on vacant land outside the City. These tax abatements
are designed to level the"playing field"for urban communities to encourage redevelopment of vacant buildings,
and to attract and retain private investment and jobs within the City. The City of Lansing provides tax
abatements under several different programs:
➢ Industrial property tax abatements are granted in the State of Michigan under Public Act 198 to promote
economic development, creation of jobs, and new or improved facilities. The Industrial Facilities Tax
(IFT) Exemption must be approved by both the City (after a public hearing is held) and the State of
Michigan. IFT exemptions can cover real and/or personal property. By State law,the exemption must
be applied for no later than six months after commencement of the project and must be accompanied by
a written agreement between the taxpayer and the local unit. An exemption allows for taxation on IFT
property at 50%of the local property tax millage rate for up to 12 years. A certificate may be revoked,
and taxes recaptured for noncompliance with the terms of the agreement. Property taxes abated by the
City under this program for fiscal year 2025 amounted to$946,619.
114
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 18-TAX ABATEMENTS(concluded)
➢ The State of Michigan allows for Commercial Rehabilitation Exemption under Public Act 210 if making
substantial improvements to a business or multi-family residential facility. The City had no Commercial
Rehabilitation Exemptions for fiscal year 2025.
➢ To incentivize new or expanded businesses,Public Act 328 allows for Personal Property Tax Exemptions
for qualified businesses located within eligible distressed communities. The exemption must be
approved by the City Council and the State Treasurer. Once approved, the taxpayer is exempt from
personal property tax on new investments after the date of the exemption. The City can recapture the
taxes if the business defaults on the terms of the written agreement. Property taxes abated by the City
under this program for fiscal year 2025 amounted to$2,726,025.
➢ The Brownfield Redevelopment Authority encourages environmental cleanup and economic
development through its Brownfield Redevelopment Plan under Public Act 318. A developer performs
redevelopment and cleanup activities at a site that is obsolete or blighted. The increased tax revenues
resulting from the increase in taxable value are captured by the City and used to repay the developer for
qualifying expenses. There is no provision for recovery of abated taxes because the developer is only
paid for eligible expenses on a reimbursement-basis. In addition,there are reserve liabilities reported
in the financial statements that represent tax captures set aside for future developer reimbursements.
Property taxes abated by the Authority under this program for fiscal year 2025 amounted to$3,981,713.
NOTE 19 -ASSETS HELD BY FOUNDATION
During 2020 the City contributed $1,296,395 from the sale of Waverly Park to the City of Lansing Parks and
Recreation Endowment Fund,which is held by the Capital Region Community Foundation (CRCF) on behalf of
the City, from which only a certain component is spendable. During 2025 the City contributed $10,000. The
expenditure related to the contribution is recorded within a nonmajor capital project fund. The CRCF has explicit
variance power and therefore these amounts are not shown in the financial statements of the City. This variance
power allows CRCF to modify any restrictions or considerations on the distribution of the funds. Distributions
will be made to the City annually as requested, according to the spending guidelines. The City elected not to
receive any distributions this year. At June 30,2025,the fund has a value of$2,079,748.
NOTE 20-LEASE RECEIVABLE
The City leases one of its buildings to a third party. The lease is for 20 years and the City will receive annual
payments of$24,600,increasing by 2.5%annually. The City recognized$16,117 in lease revenue and$9,098 in
interest revenue during the current fiscal year related to this lease. As of June 30,2025,the City's receivable for
lease payments was$385,193. Also,the City has deferred the inflow of resources associated with this lease that
will be recognized as revenue over the lease term. As of June 30, 2025, the balance of the deferred inflow of
resources was$379,759.
115
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 21-CHANGES IN ACCOUNTING PRINCIPLES
For the year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences and
GASB No. 102,Certain Risk Disclosures.
GASB 101 Summary:
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been
used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability
should be recognized for leave that has not been used if(a)the leave is attributable to services already rendered,
(b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in
cash or settled through noncash means. This Statement also establishes guidance for measuring a liability for
leave that has not been used,generally using an employee's pay rate as of the date of the financial statements.
There was not a material impact on the financial statements due to this statement.
GASB 102 Summary:
This Statement requires a government to assess whether a concentration or constraint makes the government
vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess
whether an event or events associated with a concentration or constraint that could cause the substantial impact
have occurred,have begun to occur, or are more likely than not to begin to occur within 12 months of the date
the financial statements are issued. If a government determines that those criteria for disclosure have been met
for a concentration or constraint, it should disclose information in notes to financial statements in sufficient
detail to enable users of financial statements to understand the nature of circumstances disclosed and the
government's vulnerability to the risk of substantial impact. There was not a material impact on the financial
statements due to this statement.
NOTE 22 -ADJUSTMENT TO BEGINNING NET POSITION
During fiscal year 2025,the change to beginning net position related to a restatement of long-term obligations:
Component
Units
Net position (deficit),beginning of year,as previously reported $ (54,497,630)
Correction of an error 239,030
Net position (deficit),beginning of year,as restated $ (54,258,600)
116
CITY OF LANSING
NOTES TO FINANCIAL STATEMENTS
NOTE 23 -UPCOMING ACCOUNTING PRONOUNCEMENTS
In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This Statement
establishes new accounting and financial reporting requirements - or modifies existing requirements - related
to the following:
a. Management's discussion and analysis (MD&A);
i. Requires that the information presented in MD&A be limited to the related topics discussed in
five specific sections:
1) Overview of the Financial Statements,
2) Financial Summary,
3) Detailed Analyses,
4) Significant Capital Asset and Long-Term Financing Activity,
5) Currently Known Facts,Decisions,or Conditions;
ii. Stresses detailed analyses should explain why balances and results of operations changed rather
than simply presenting the amounts or percentages by which they changed;
iii. Removes the requirement for discussion of significant variations between original and final
budget amounts and between final budget amounts and actual results;
b. Unusual or infrequent items;
c. Presentation of the proprietary fund statement of revenues,expenses,and changes in fund net position;
i. Requires that the proprietary fund statement of revenues, expenses, and changes in fund net
position continue to distinguish between operating and nonoperating revenues and expenses
and clarifies the definition of operating and nonoperating revenues and expenses;
ii. Requires that a subtotal for operating income(loss)and noncapital subsidies be presented before
reporting other nonoperating revenues and expenses and defines subsidies;
d. Information about major component units in basic financial statements should be presented separately in
the statement of net position and statement of activities unless it reduces the readability of the statements
in which case combining statements of should be presented after the fund financial statements;
e. Budgetary comparison information should include variances between original and final budget amounts
and variances between final budget and actual amounts with explanations of significant variances
required to be presented in the notes to RSI.
The City is currently evaluating the impact this standard will have on the financial statements when adopted
during the 2025-2026 fiscal year.
In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement
requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required
by Statement No.34. Lease assets recognized in accordance with Statement No.87,Leases,and intangible right-
to-use assets recognized in accordance with Statement No.94,Public-Private and Public-Public Partnerships and
Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the
capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96,
Subscription-based Information Technology Arrangements,also should be separately disclosed. In addition,this
Statement requires intangible assets other than those three types to be disclosed separately by major class. This
Statement also requires additional disclosures for capital assets held for sale. The City is currently evaluating
the impact this standard will have on the financial statements when adopted during the 2025-2026 fiscal year.
117
REQUIRED SUPPLEMENTARY INFORMATION
118
CITY OF LANSING
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes $ 53,925,000 $ 53,925,000 $ 54,828,119 $ 903,119
Income taxes 42,750,000 42,750,000 45,547,274 2,797,274
Licenses and permits 1,875,500 1,875,499 1,534,016 (341,483)
Intergovernmental 29,695,000 25,695,000 25,380,715 (314,285)
Charges for services 10,734,500 10,734,500 10,935,424 200,924
Fines and forfeits 1,576,000 1,576,000 1,461,644 (114,356)
Interest and rents 665,677 665,677 1,446,495 780,818
Other
Donations and contributions 27,501,500 28,001,500 28,057,140 55,640
Miscellaneous 529,823 529,824 609,626 79,802
TOTAL REVENUES 169,253,000 165,753,000 169,800,453 4,047,453
EXPENDITURES
Current
General government
City clerk
Personnel 1,209,251 1,209,251 1,264,415 (55,164)
Operating 744,810 744,810 665,914 78,896
Total city clerk 1,954,061 1,954,061 1,930,329 23,732
Council
Personnel 541,858 541,858 565,672 (23,814)
Operating 193,843 221,612 136,454 85,158
Total council 735,701 763,470 702,126 61,344
Finance and related
Personnel 5,045,721 4,896,721 4,882,168 14,553
Operating 1,717,903 1,717,903 2,348,716 (630,813)
Total finance and related 6,763,624 6,614,624 7,230,884 (616,260)
Internal audit
Personnel 195,192 162,192 178,179 (15,987)
Operating 8,159 8,159 7,336 823
Total internal audit 203,351 170,351 185,515 (15,164)
Library rental
Operating 145,000 145,000 152,929 (7,929)
Human resources
Personnel 1,874,163 1,888,163 1,873,246 14,917
Operating 652,126 652,126 621,909 30,217
Total human resources 2,526,289 2,540,289 2,495,155 45,134
City supported agencies
Personnel - 6,490,000 21,851,169 (15,361,169)
Operating 547,500 1,125,760 1,281,092 (155,332)
547,500 7,615,760 23,132,261 (15,516,501)
Mayor
Personnel 1,034,509 1,034,509 1,155,786 (121,277)
Operating 282,089 282,089 241,618 40,471
Total mayor 1,316,598 1,316,598 1,397,404 (80,806)
Office of community media
Personnel 651,522 651,522 657,648 (6,126)
Operating 76,009 90,017 85,261 4,756
Total office of community media 727,531 741,539 742,909 (1,370)
Contingency (1,500,000) - -
Total general government 13,419,655 21,861,692 37,969,512 (16,107,820)
CONTINUED
119
CITY OF LANSING
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL (continued)
YEAR ENDED JUNE 30,2025
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
EXPENDITURES(continued)
Current(continued)
Judicial
Personnel $ 8,395,224 $ 8,037,224 $ 7,730,636 $ 306,588
Operating 630,998 630,998 1,854,721 (1,223,723)
Total judicial 9,026,222 8,668,222 9,58S,357 (917,135)
Public safety
Police
Personnel 50,438,586 47,257,586 47,288,210 (30,624)
Operating 10,179,341 9,284,341 7,197,198 2,087,143
Total police 60,617,927 56,541,927 54,485,408 2,056,519
Fire
Personnel 37,119,4S0 37,SS4,450 38,434,83E (880,388)
Operating 6,098,360 6,098,360 5,058,393 1,039,967
Total fire 43,217,810 43,652,810 43,493,231 159,579
Total public safety 103,835,737 100,194,737 97,978,639 2,216,098
Public works
Personnel 3,150,362 3,087,362 3,496,799 (409,437)
Operating 9,858,342 9,858,342 10,886,813 (1,028,471)
Total public works 13,008,704 12,945,704 14,383,612 (1,437,908)
Recreation and culture
Personnel 5,675,739 5,177,739 5,216,917 (39,178)
Operating 3,434,057 3,434,057 4,780,897 (1,346,840)
Total recreation and culture 9,109,796 8,611,796 9,997,814 (1,386,018)
Health and welfare
Human services/community support
Operating 2,235,000 3,719,414 2,373,153 1,346,261
Community and economic development
Economic development&planning
Personnel 3,883,414 3,648,414 3,687,100 (38,686)
Operating 2,760,027 2,760,027 3,268,053 (508,026)
Total economic development&planning 6,643,441 6,408,441 6,955,153 (546,712)
Neighborhood&community engagement
Personnel 1,094,223 1,121,223 1,141,832 (20,609)
Operating 608,913 608,913 356,645 252,268
Total neighborhood&community engagement 1,703,136 1,730,136 1,498,477 231,659
Human relations/community services
Personnel 1,832,040 1,768,040 1,769,605 (1,565)
Operating 248,553 315,235 289,792 25,443
Total human relations/community services 2,080,593 2,083,27S 2,059,397 23,878
Total community and economic development 10,427,170 10,221,852 10,513,027 (291,175)
CONTINUED
120
CITY OF LANSING
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL (concluded)
YEAR ENDED JUNE 30,2025
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
EXPENDITURES(concluded)
Debt service
Principal $ 1,731,000 $ 1,731,000 $ 1,465,000 $ 266,000
Interest and fiscal charges 470,591 470,591 389,980 80,611
Total debt service 2,201,591 2,201,591 1,854,980 346,611
TOTAL EXPENDITURES 163,263,875 168,425,008 184,656,094 (16,231,086)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 5,989,125 (2,672,008) (14,855,641) (12,183,633)
OTHER FINANCING SOURCES(USES)
Transfers in 333,000 333,000 5,298,206 4,965,206
Transfers out (6,497,125) (6,497,125) (1,104,132) 5,392,993
TOTAL OTHER FINANCING
SOURCES(USES) (6,164,125) (6,164,125) 4,194,074 10,358,199
NET CHANGE IN FUND BALANCE (175,000) (8,836,133) (10,661,567) (1,825,434)
Fund balance,beginning of year 40,651,846 40,651,846 40,651,846
Fund balance,end of year $ 40,476,846 $ 31,815,713 $ 29,990,279 $ (1,825,434)
121
CITY OF LANSING
STATE AND FEDERAL GRANTS FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 1,814,987 $ 8,642,381 $ 26,843,269 $ 18,200,888
Interest and rents - - 1,219,309 1,219,309
Other revenues 25,000 25,000 9,761 (15,239)
TOTAL REVENUES 1,839,987 8,667,381 28,072,339 19,404,958
EXPENDITURES
Current
General government
Personnel 143,386 279,888 (136,502)
Operations 1,073,780 602,386 471,394
Total general government 1,217,166 882,274 334,892
Public safety
Personnel 1,450 1,041,686 (1,040,236)
Operations 286,762 653,115 (366,353)
Total public safety 288,212 1,694,801 (1,406,589)
Public works
Operations 800,000 2,001,356 5,634,406 (3,633,050)
Health and welfare
Personnel - - 6,591 (6,591)
Operations 181,593 181,593 365,673 (184,080)
Total health and welfare 181,593 181,593 372,264 (190,671)
Community and economic development
Personnel 91,330 91,330 543,454 (452,124)
Operations 867,064 4,987,724 14,832,153 (9,844,429)
Total community and economic development 958,394 5,079,054 15,375,607 (10,296,553)
Recreation and culture
Personnel - - 100 (100)
Operations 38,046 (38,046)
Total recreation and culture - 38,146 (38,146)
TOTAL EXPENDITURES 1,939,987 8,767,381 23,997,498 (15,230,117)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (100,000) (100,000) 4,074,841 4,174,841
OTHER FINANCING SOURCES(USES)
Transfers in 100,000 100,000 186,132 86,132
Transfers out - - (4,260,973) (4,260,973)
TOTAL OTHER FINANCING
SOURCES(USES) 100,000 100,000 (4,074,841) (4,174,841)
NET CHANGE IN FUND BALANCE - -
Fund balance,beginning of year
Fund balance,end of year $ $ $ $
122
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
CHANGE IN TOTAL PENSION LIABILITY
Service cost $ 3,086,827 $ 3,074,831 $ 2,889,649 $ 2,827,879 $ 2,943,847 $ 2,738,099 $ 2,719,559 $ 2,538,487 $ 2,711,461 $ 2,977,084
Interest 21,107,684 21,073,196 21,220,221 21,523,899 21,890,652 21,360,398 21,512,099 21,994,837 22,403,009 22,268,516
Difference between expected and actual experience (1,980,044) 931,426 (2,085,433) (4,473,505) (2,504,529) 7,219,344 (2,559,726) (6,451,827) (23,183,264) (4,937,823)
Changes ofassumptions - - - - 7,666,292 - - 3,099,448 3,706,512 7,575,775
Benefit payments,including employee refunds (24,793,019) (24,410,966) (24,212,331) (24,342,091) (24,316,255) (24,106,903) (23,470,040) (23,102,224) (22,913,214) (22,860,449)
Net Change in Total Pension Liability (2,578,552) 668,487 (2,187,894) (4,463,818) 5,680,007 7,210,938 (1,798,108) (1,921,279) (17,275,496) 5,023,103
Total Pension Liability,beginning 310,638,367 309,969,880 312,157,774 316,621,592 310,941,585 303,730,647 305,528,755 307,450,034 324,725,530 319,702,427
Total Pension Liability,ending $ 308,059,815 $ 310,638,367 $ 309,969,880 $ 312,157,774 $ 316,621,592 $ 310,941,585 $ 303,730,647 $ 305,528,755 $ 307,450,034 $ 324,725,530
CHANGE IN PLAN FIDUCIARY NET POSITION
Contributions-employer $ 12,776,200 $ 13,793,087 $ 11,675,068 $ 13,494,287 $ 12,649,529 $ 10,698,401 $ 10,880,932 $ 10,843,000 $ 10,246,872 $ 10,181,620
Contributions-employee 1,536,435 1,417,258 1,418,513 1,289,306 1,172,409 1,286,273 1,220,657 1,230,857 1,216,519 1,088,943
Contributions-state grant 2,361,715 11,551,892 - - - - - - - -
Netinvestmentincome(loss) 20,138,188 16,452,547 3,436,309 (15,129,738) 36,047,284 (540,861) 8,437,568 9,679,565 17,412,568 (2,790,190)
Benefit payments,including employee refunds (24,793,019) (24,410,966) (24,212,331) (24,342,091) (24,316,255) (24,106,903) (23,470,040) (23,102,224) (22,913,214) (22,860,449)
Administrative expenses (219,606) (86,560) (114,853) (66,474) (20,367) (34,016) (42,364) (57,822) (47,217) (126,486)
Net Change in Plan Fiduciary Net Position 11,799,913 18,717,258 (7,797,294) (24,754,710) 25,532,600 (12,697,106) (2,973,247) (1,406,624) 5,915,528 (14,506,562)
Plan Fiduciary Net Position,beginning 164,586,317 145,869,059 153,666,353 178,421,063 152,888,463 165,585,569 168,558,816 169,965,440 164,049,912 178,556,474
Plan Fiduciary Net Position,ending $ 176,386,230 $ 164,586,317 $ 145,869,059 $ 1S3,666,353 $ 178,421,063 $ 1S2,888,463 $ 165,58S,569 $ 168,5S8,816 $ 169,96S,440 $ 164,049,912
City's Net Pension Liability $ 131,673,585 $ 146,052,050 $ 164,100,821 $ 158,491,421 $ 138,200,529 $ 158,053,122 $ 138,145,078 $ 136,969,939 $ 137,484,594 $ 160,675,618
Plan fiduciary net position as a percentage ofthe
total pension liability 57.26% 52.98% 47.06% 49.23% 56.35% 49.17% 54.52% 55.17% 55.28% 50.52%
Covered payroll $ 31,613,907 $ 21,858,025 $ 27,348,422 $ 24,509,599 $ 26,001,896 $ 24,304,971 $ 23,265,437 $ 22,672,891 $ 20,901,389 $ 23,085,894
City's net pension liability as a percentage
of covered payroll 416.5% 668.2% 600.0% 646.7% 531.5% 650.3% 593.8% 604.1% 657.8% 696.0%
Assumption changes - there were no changes in actuarial assumptions during fiscal year 2025. More details regarding actuarial assumptions can be
found in the December 31,2024,valuation reports for each system.
Benefit changes-there were no changes to benefits in the current year.
123
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN - EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contributions $ 12,776,200 $ 13,165,598 $ 12,194,686 $ 12,737,487 $ 12,349,529 $ 10,698,401 $ 10,880,932 $ 10,185,060 $ 10,246,872 $ 10,181,620
Contributions in relation to the actuarially
determined contribution 15,137,915 13,793,087 11,675,068 12,737,487 12,349,529 10,698,401 10,880,932 10,843,000 10,246,872 10,181,620
Contribution deficiency(excess) $ (2,361,715) $ (627,489) $ 519,618 $ - $ - $ - $ - $ (657,940) $ - $ -
Covered payroll $ 31,613,907 $ 21,858,025 $ 27,348,422 $ 24,509,899 $ 26,001,896 $ 24,304,971 $ 23,265,437 $ 22,672,891 $ 20,901,389 $ 23,085,894
Contributions as a percentage of
covered payroll 47.88% 63.10% 42.69% 51.97% 47.49% 44.02% 46.77% 47.82% 49.02% 44.10%
The actuarially determined contribution was based on projected covered payroll. Employer contributions were made in full based on actual covered
payroll. Accordingly,the actuarially determined contribution has been expressed above as a percentage of actual payroll.
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2024, rolled forward to June 30, 2025, using the following
actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Salary increases: Inflation,plus service-based increases.
Investment rate of return: 7.00%,net of investment expense,including inflation.
Mortality is based on the Pub2010S tables (below median), 50% for pre-retirement deaths. For Disabled members, the disabled versions of these
tables are used. Each of these tables is projected generationally with Scale SSA(2020).
The actuarial assumptions used in the December 31,2024 valuation were based on the 2015-2019 experience study.
124
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN-EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Annual money-weighted rate of return,
net of investment expense 12.61% 10.97% 2.29% -8.82% 24.71% -0.34% 5.17% 5.87% 10.91% -1.60%
125
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
CHANGE IN TOTAL PENSION LIABILITY
Service cost $ 7,449,286 $ 7,023,797 $ 7,853,786 $ 7,269,988 $ 6,961,705 $ 6,526,273 $ 6,801,669 $ 6,533,877 $ 6,133,683 $ 6,371,845
Interest 36,785,873 35,852,495 34,431,238 33,647,916 32,984,834 32,689,419 31,573,535 30,641,722 30,519,676 30,197,513
Changes ofbenefitterms - - 295,273 - - - - 779 - -
Difference between expected and actual experience 13,590,233 9,526,686 17,292,601 6,641,422 (2,944,445) (1,062,537) 10,590,030 8,263,623 (19,308,117) 7,884,167
Changes of assumptions - - - - 24,025,142 - - 1,647,044 25,078,592 3,281,341
Benefit payments,including employee refunds (39,228,002) (39,760,974) (37,717,498) (36,188,116) (35,040,363) (33,987,421) (32,609,254) (31,757,151) (31,102,186) (29,503,964)
Net Change in Total Pension Liability 18,597,390 12,642,004 22,155,400 11,371,210 25,986,873 4,165,734 16,355,980 15,329,894 11,321,648 18,230,902
Total Pension Liability,beginning 537,677,193 525,035,189 502,879,789 491,508,579 465,521,706 461,355,972 444,999,992 429,670,098 418,348,450 400,117,548
Total Pension Liability,ending $ 556,274,583 $ 537,677,193 $ 525,035,189 $ 502,879,789 $ 491,508,579 $ 465,521,706 $ 461,355,972 $ 444,999,992 $ 429,670,098 $ 418,348,450
CHANGE IN PLAN FIDUCIARY NET POSITION
Contributions-employer $ 21,648,376 $ 20,638,901 $ 18,165,988 $ 19,609,552 $ 18,250,155 $ 15,457,647 $ 13,554,239 $ 12,686,000 $ 11,521,768 $ 10,884,312
Contributions-employee 3,275,511 3,232,535 2,967,886 2,722,350 3,207,122 3,459,452 3,485,891 2,650,019 2,840,914 2,608,214
Net investment income(loss) 36,900,141 35,058,403 13,936,766 (32,083,115) 68,910,089 1,047,240 17,943,950 19,937,149 32,116,305 (6,040,910)
Benefit payments,including employee refunds (39,228,002) (39,760,974) (37,717,498) (36,188,116) (35,040,363) (33,987,421) (32,609,254) (31,757,151) (31,102,186) (29,503,964)
Administrative expenses (316,957) (113,104) (126,049) (88,992) (24,177) (41,599) (53,318) (77,237) (50,996) (128,903)
Net Change in Plan Fiduciary Net Position 22,279,069 19,055,761 (2,772,907) (46,028,321) 55,302,826 (14,064,681) 2,321,508 3,438,780 15,325,805 (22,181,251)
Plan Fiduciary Net Position,beginning 305,694,169 286,638,408 289,411,315 335,439,636 280,136,810 294,201,491 291,879,983 288,441,203 273,115,398 295,296,649
Plan Fiduciary Net Position,ending $ 327,973,238 $ 305,694,169 $ 286,638,408 $ 289,411,315 $ 335,439,636 $ 280,136,810 $ 294,201,491 $ 291,879,983 $ 288,441,203 $ 273,115,398
City's Net Pension Liability $ 228,301,345 $ 231,983,024 $ 238,396,781 $ 213,468,474 $ 156,068,943 $ 185,384,896 $ 167,1S4,481 $ 153,120,009 $ 141,228,895 $ 145,233,052
Plan fiduciary net position as a percentage of the
total pension liability 58.96% 56.85% 54.59% 57.55% 68.25% 60.18% 63.77% 65.59% 67.13% 65.28%
Covered payroll $ 29,612,198 $ 27,834,051 $ 33,120,012 $ 31,354,796 $ 29,636,017 $ 28,977,408 $ 29,638,532 $ 28,435,952 $ 27,585,521 $ 27,078,405
City's net pension asset as a percentage
of covered payroll 771.0% 833.5% 719.8% 680.8% 526.6% 639.8% 564.0% 538.5% 512.0% 536.3%
Assumption changes - there were no changes in actuarial assumptions during fiscal year 2025. More details regarding actuarial assumptions can be
found in the December 31,2024,valuation reports for each system.
Benefit changes-there were no changes to benefits in the current year.
126
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contributions $ 21,648,376 $ 20,638,901 $ 18,165,988 $ 18,263,635 $ 16,950,155 $ 15,457,647 $ 13,554,239 $ 12,562,547 $ 11,521,768 $ 10,884,312
Contributions in relation to the actuarially
determined contribution 21,648,376 20,638,901 18,165,988 18,263,635 16,950,155 15,457,647 13,554,239 12,686,000 11,521,768 10,884,312
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ $ (123,453) $ - $ -
Covered payroll $ 29,612,198 $ 27,834,051 $ 33,120,012 $ 31,354,796 $ 29,636,017 $ 28,977,408 $ 29,638,532 $ 28,435,952 $ 27,585,521 $ 27,078,405
Contributions as a percentage of
covered payroll 73.11% 74.15% 54.85% 58.25% 57.19% 53.34% 45.73% 44.61% 41.77% 40.20%
The actuarially determined contribution was based on projected covered payroll. Employer contributions were made in full based on actual covered
payroll. Accordingly,the actuarially determined contribution has been expressed above as a percentage of actual payroll.
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2024, rolled forward to June 30, 2025, using the following
actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Salary increases: Inflation,plus service-based increases.
Investment rate of return: 7.00%,net of investment expense,including inflation.
Mortality is based on the Pub2010S (below median), 50%for pre-retirement deaths. For Disabled members,the disabled version of these tables is
used. Each of these tables is projected generationally with Scale SSA(2020).
The actuarial assumptions used in the December 31,2024 valuation were based on the 2015-2019 experience study.
127
CITY OF LANSING
DEFINED BENEFIT PENSION PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Annual money-weighted rate of return,
net of investment expense 12.48% 11.65% 4.84% -9.86% 25.50% 0.37% 6.30% 7.10% 12.06% -2.09%
128
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-VEBA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST TWO FISCAL YEARS (ULTIMATELY TEN FISCAL YEARS WILL BE DISPLAYED)
2025 2024
CHANGE IN TOTAL OPEB LIABILITY
Service cost $ 830,825 $ 643,122
Interest 4,958,390 4,135,397
Difference between expected and actual return on investments (2,539,569) (3,816,996)
Net Change in Total OPEB Liability 3,249,646 961,523
Total OPEB Liability,beginning 57,744,273 56,782,750
Total OPEB Liability,ending $ 60,993,919 $ 57,744,273
CHANGE IN PLAN FIDUCIARY NET POSITION
Employer contributions $ 2,009,261 $ 1,492,189
OPEB plan net investment income 4,938,931 4,518,211
Administrative expenses (180,082) (119,803)
Net Change in Plan Fiduciary Net Position 6,768,110 5,890,597
Plan Fiduciary Net Position,beginning 45,008,901 39,118,304
Plan Fiduciary Net Position,ending $ 51,777,011 $ 45,008,901
Plan's Net OPEB Liability $ 9,216,908 $ 12,735,372
Plan fiduciary net position as a percentage
of the total OPEB liability 84.89% 77.95%
Covered payroll $ 9,627,920 $ 11,539,732
Plan's net OPEB liability as a percentage of covered payroll 95.73% 110.36%
This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes-there were no changes of assumptions in 2025.
Benefit changes-there were no changes to benefits in 2025.
Note: The VEBA other postemployment benefit plan was previously reported with the ERS other
postemployment benefit plan.
129
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-VEBA
SCHEDULE OF CONTRIBUTIONS
LAST TWO FISCAL YEARS (ULTIMATELY TEN FISCAL YEARS WILL BE DISPLAYED)
2025 2024
Actuarially determined contributions $ 2,953,772 $ 1,960,255
Contributions in relation to the actuarially
determined contribution 2,009,261 1,492,189
Contribution deficiency $ 944,511 $ 468,066
Covered payroll $ 9,627,920 $ 11,539,732
Contributions as a percentage of covered payroll 20.9% 12.9%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to June
30, 2025,using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables, with below median and
headcount weighted,projected generationally using MP-2021.
The actuarial assumptions used in the January 1, 2024,valuation were based on the 2015-2019 experience
study.
Note: The VEBA other postemployment benefit plan was previously reported with the ERS other
postemployment benefit plan.
130
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-VEBA
SCHEDULE OF INVESTMENT RETURNS
LAST TWO FISCAL YEARS (ULTIMATELY TEN FISCAL YEARS WILL BE DISPLAYED)
2025 2024
Annual money-weighted rate of return,
net of investment expense 10.21% 10.74%
This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Note: The VEBA other postemployment benefit plan was previously reported with the ERS other
postemployment benefit plan.
131
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN- EMPLOYEES' RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST NINE MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2025 2024 2023* 2022* 2021* 2020* 2019* 2018* 2017*
CHANGE IN TOTAL OPEB LIABILITY
Service cost $ 908,142 $ 1,049,303 $ 1,647,129 $ 1,603,045 $ 1,560,141 $ 1,518,385 $ 1,477,747 $ 1,438,197 $ 1,550,428
Interest 5,419,816 6,747,227 10,762,261 10,562,939 11,335,921 13,143,168 12,990,219 13,221,134 12,976,683
Difference between expected and actual return on investments (2,775,900) (6,227,729) - - (39,503,661) (19,498,451) - (9,321,837) -
Changes of assumptions (66,716,444) 39,986,554 3,614,432 (2,727,829)
Benefit payments,including refunds of member contributions (8,449,770) (11,071,584) (10,410,016) (8,350,052) (9,395,594) (10,444,878) (10,573,488) (10,286,249) (10,116,593)
Net Change in Total OPEB Liability (4,897,712) (9,502,783) 1,999,374 3,815,932 (102,719,637) 24,704,778 7,508,910 (7,676,584) 4,410,518
Total OPEB Liability,beginning 92,930,271 102,433,054 157,216,430 153,400,498 256,120,135 231,415,357 223,906,447 231,583,031 227,172,513
Total OPEB Liability,ending $ 88,032,559 $ 92,930,271 $ 159,215,804 $ 157,216,430 $ 153,400,498 $ 256,120,135 $ 231,415,357 $ 223,906,447 $ 231,583,031
CHANGE IN PLAN FIDUCIARY NET POSITION
Employer contributions $ 14,390,709 $ 11,886,843 $ 12,126,259 $ 10,643,555 $ 10,424,468 $ 11,461,488 $ 11,848,485 $ 11,436,222 $ 11,305,756
OPEB plan net investment income(loss) 3,653,498 2,455,416 12,596,837 (11,324,122) 11,001,355 4,366,514 3,040,683 4,329,577 5,209,669
Benefit payments,including refunds of member contributions (8,449,770) (11,071,584) (10,410,016) (8,350,052) (9,395,594) (10,444,878) (10,573,488) (10,286,249) (10,116,593)
Administrative expenses (503,094) (151,356) (697,661) (611,703) (728,874) (636,610) (548,939) (444,973) (389,163)
Net Change in Plan Fiduciary Net Position 9,091,343 3,119,319 13,615,419 (9,642,322) 11,301,355 4,746,514 3,766,741 5,034,577 6,009,669
Plan Fiduciary Net Position,beginning 47,504,025 44,384,706 69,887,591 79,529,913 68,228,558 63,482,044 59,715,303 54,680,726 48,671,057
Plan Fiduciary Net Position,ending $ 56,595,368 $ 47,504,025 $ 83,503,010 $ 69,887,591 $ 79,529,913 $ 68,228,558 $ 63,482,044 $ 59,715,303 $ 54,680,726
Plan's Net OPEB Liability $ 31,437,191 $ 45,426,246 $ 75,712,794 $ 87,328,839 $ 73,870,585 $ 187,891,577 $ 167,933,313 $ 164,191,144 $ 176,902,305
Plan fiduciary net position as a percentage
of the total OPEB liability 64.29% 51.12% 52.45% 44.45% 51.84% 26.64% 27.43% 26.67% 23.61%
Covered payroll $ 20,058,166 $ 18,827,984 $ 26,458,716 $ 26,747,483 $ 24,292,037 $ 25,453,989 $ 23,720,424 $ 21,251,418 $ 20,901,289
Plan's net OPEB liability as a percentage of covered payroll 156.73% 241.27% 286.15% 326.49% 304.09% 738.16% 707.97% 772.61% 846.37%
*Includes ERS and VEBA OPEB plan activity.
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes-there were no changes of assumptions in 2025.
Benefit changes-there were no changes to benefits in 2025.
132
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN- EMPLOYEES' RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2025 2024 2023* 2022* 2021* 2020* 2019* 2018* 2017* 2016*
Actuarially determined contributions $ 3,228,650 $ 7,165,814 $ 7,313,859 $ 7,100,834 $ 7,100,834 $ 10,504,140 $ 10,198,194 $ 10,910,284 $ 10,582,235 $ 11,447,334
Contributions in relation to the actuarially
determined contribution 14,390,709 11,886,843 12,126,259 10,643,555 10,424,468 11,461,488 11,848,485 11,436,222 11,305,756 8,814,471
Contribution deficiency(excess) $ (11,162,059) $ (4,721,029) $ (4,812,400) $ (3,S42,721) $ (3,323,634) $ (957,348) $ (1,650,291) $ (525,938) $ (723,521) $ 2,632,863
Covered payroll $ 20,OS8,166 $ 18,827,984 $ 26,458,716 $ 26,747,483 $ 24,292,037 $ 25,435,989 $ 23,720,424 $ 21,251,418 $ 20,901,389 $ 23,085,894
Contributions as a percentage of covered payroll 71.7% 63.1% 45.8% 39.8% 42.9% 45.1% 50.0% 53.8% 54.1% 38.2%
*Includes ERS and VEBA OPEB plan activity.
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to June 30, 2025, using the following actuarial
assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables,with below median and headcount weighted, projected generationally
using MP-2021.
The actuarial assumptions used in the January 1,2024,valuation were based on the 2015-2019 experience study.
133
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN- EMPLOYEES'RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST NINE MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2025 2024 2023* 2022* 2021* 2020* 2019* 2018* 2017*
Annual money-weighted rate of return,
net of investment expense 7.02% 5.34% 16.42% -15.16% 14.89% 6.63% 4.17% 7.10% 9.90%
*Includes ERS and VEBA OPEB plan activity.
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
134
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST NINE MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2025 2024 2023 2022 2021 2020 2019 2018 2017
CHANGE IN TOTAL OPEB LIABILITY
Service cost $ 1,220,106 $ 1,566,323 $ 3,904,624 $ 3,800,121 $ 3,698,415 $ 3,599,431 $ 3,503,096 $ 3,409,339 $ 3,749,359
Interest 14,400,929 14,585,580 14,158,158 13,536,620 15,112,018 15,551,609 15,565,892 15,994,328 15,584,783
Difference between expected and actual return on investments 8,433,995 (7,287,277) - - (71,213,994) 18,584,560 - (17,811,401) -
Changes of assumptions - - - - (162,399,773) 91,997,958 18,652,834 (7,445,354)Benefit payments,including refunds of member contributions (12,287,069) (10,063,103) (9,188,608) (7,956,471) (10,836,077) (13,132,398) (12,271,014) (11,960,SS7) (11,065,440)
Net Change in Total OPEB Liability 11,767,961 (1,198,477) 8,874,174 9,380,270 (225,639,411) 116,601,160 25,450,808 (17,813,645) 8,268,702
Total OPEB Liability,beginning 210,547,076 211,745,553 202,871,379 193,491,109 419,130,520 302,529,360 277,078,552 294,892,197 286,623,495
Total OPEB Liability,ending $ 222,315,037 $ 210,547,076 $ 211,745,553 $ 202,871,379 $ 193,491,109 $ 419,130,520 $ 302,529,360 $ 277,078,552 $ 294,892,197
CHANGE IN PLAN FIDUCIARY NET POSITION
Employer contributions $ 27,808,338 $ 13,313,395 $ 11,304,220 $ 9,974,904 $ 12,951,908 $ 14,971,737 $ 13,500,687 $ 13,163,201 $ 12,290,749
OPEB plan net investment income(loss) 4,326,161 1,471,511 11,844,067 (7,645,295) 3,408,741 2,998,056 290,543 3,S72,965 3,487,200
Benefit payments,including refunds of member contributions (12,287,069) (10,063,103) (9,188,608) (7,956,471) (10,836,077) (13,132,398) (12,271,014) (11,960,557) (11,065,440)
Administrative expenses (1,163,925) (365,017) (765,612) (672,516) (815,831) (529,339) (627,673) (600,644) (525,309)
Net Change in Plan Fiduciary Net Position 18,683,505 4,356,786 13,194,067 (6,299,378) 4,708,741 4,308,056 892,543 4,174,965 4,187,200
Plan Fiduciary Net Position,beginning 59,469,018 55,112,232 41,918,165 48,217,543 43,508,802 39,200,746 38,308,203 34,133,238 29,946,038
Plan Fiduciary Net Position,ending $ 78,152,523 $ 59,469,018 $ 55,112,232 $ 41,918,165 $ 48,217,543 $ 43,508,802 $ 39,200,746 $ 38,308,203 $ 34,133,238
Plan's Net OPEB Liability $ 144,162,514 $ 151,078,058 $ 156,633,321 $ 160,953,214 $ 145,273,566 $ 375,621,718 $ 263,328,614 $ 238,770,349 $ 260,758,959
Plan fiduciary net position as a percentage
of the total OPEB liability 35.15% 28.24% 26.03% 20.66% 24.92% 10.38% 12.96% 13.83% 11.57%
Covered payroll $ 29,612,198 $ 28,983,627 $ 31,220,001 $ 27,116,594 $ 29,636,017 $ 29,774,287 $ 28,435,953 $ 20,667,007 $ 27,585,521
Plan's net OPEB liability as a percentage of covered payroll 486.83% 521.25% 501.71% 593.56% 490.19% 1261.56% 926.04% 1155.32% 945.27%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
Assumption changes-there were no changes of assumptions in 2025.
Benefit changes-there were no changes to benefits in 2025.
135
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN - POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contributions $ 14,954,563 $ 14,366,476 $ 13,573,857 $ 13,178,502 $ 13,178,502 $ 15,674,604 $ 15,218,062 $ 15,968,029 $ 19,759,521 $ 17,276,901
Contributions in relation to the actuarially
determined contribution 27,808,338 13,313,395 11,304,220 9,974,904 12,951,908 14,971,737 13,500,687 13,163,201 12,290,749 12,879,016
Contribution deficiency(excess) $ (12,853,775) $ 1,053,081 $ 2,269,637 $ 3,203,598 $ 226,594 $ 702,867 $ 1,717,375 $ 2,804,828 $ 7,468,772 $ 4,397,885
Covered payroll $ 25,816,255 $ 28,983,627 $ 31,220,001 $ 27,116,594 $ 29,636,017 $ 29,774,287 $ 28,435,953 $ 20,667,007 $ 27,585,521 $ 27,078,405
Contributions as a percentage of covered payroll 107.7% 45.9% 36.2% 36.8% 43.7% 50.3% 47.5% 63.7% 44.6% 47.6%
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to June 30, 2025, using the following actuarial
assumptions,applied to all periods included in the measurement:
Inflation: 2.50%
Investment rate of return: 7.00%,net of OPEB plan investment expense,including inflation.
Retirement age: Age-based table of rates that are specific to the type of eligibility condition.
Mortality rates are assumed to be in accordance with the Pub2010G tables,with below median and headcount weighted, projected generationally
using MP-2021.
The actuarial assumptions used in the January 1, 2024,valuation were based on the 2015-2019 experience study.
136
CITY OF LANSING
OTHER POSTEMPLOYMENT BENEFITS PLAN-POLICE AND FIRE RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
LAST NINE MEASUREMENT DATES (ULTIMATELY TEN YEARS WILL BE DISPLAYED)
2025 2024 2023 2022 2021 2020 2019 2018 2017
Annual money-weighted rate of return,
net of investment expense 6.29% 7.92% 24.41% -16.96% 7.43% 7.25% -0.88% 8.71% 9.89%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately,ten years of data will be presented.
137
CITY OF LANSING
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1-EXCESS OF EXPENDITURES OVER APPROPRIATIONS
State statutes provide that a local government unit not incur expenditures in excess of the amounts
appropriated. The City's budgeted expenditures for the General Fund have been shown at the activity level.
Within the General Fund,the legal level of budgetary control is the mandatory expenditure accounts (personal
services,supplies and operating expenses, capital outlay,debt service,transfers,and contingency) within each
department. Within other funds, the legal level of budgetary control is the mandatory expenditure accounts
(personal services, supplies and operating expenses, capital outlay, debt service, transfers, and contingency)
within that fund. Transfers between appropriations (mandatory accounts) required City Council approval. An
exception to City Council approval is allowed by City Charter for transfers between appropriations (mandatory
accounts) for amounts less than five thousand dollars, but not in excess of 15% of the appropriation in cases
where five thousand dollars exceeds 15% of the appropriation. The budgets are adopted on a basis consistent
with generally accepted accounting principles.
During the year ended June 30, 2025,the City incurred expenditures in the General Fund and Special Revenue
Funds as noted in excess of the amounts appropriated as follows:
Amounts Amounts
Appropriated Expended Variance
General Fund
Current
General government
City clerk-personnel $ 1,209,251 $ 1,264,415 $ 55,164
Council-personnel 541,858 565,672 23,814
Finance-operating 1,717,903 2,348,716 630,813
Internal audit-personnel 162,192 178,179 15,987
Library rental-operating 145,000 152,929 7,929
City supported agencies-personnel 6,490,000 21,851,169 15,361,169
City supported agencies-operating 1,125,760 1,281,092 155,332
Mayor-personnel 1,034,509 1,155,786 121,277
Office of community media-personnel 651,522 657,648 6,126
Judicial-operating 630,998 1,854,721 1,223,723
Public safety-personnel 47,257,586 47,288,210 30,624
Fire-personnel 37,554,450 38,434,838 880,388
Public works-personnel 3,087,362 3,496,799 409,437
Public works-operating 9,858,342 10,886,813 1,028,471
Recreation and culture-personnel 5,177,739 5,216,917 39,178
Recreation and culture-operating 3,434,057 4,780,897 1,346,840
Community and economic development
Economic development&planning-personnel 3,648,414 3,687,100 38,686
Economic development&planning-operating 2,760,027 3,268,053 508,026
Neighborhood&community engagement-personnel 1,121,223 1,141,832 20,609
Human relations/community services-personnel 1,768,040 1,769,605 1,565
State and Federal Grants Fund
Current
General government-personnel 143,386 279,888 136,502
Public safety-personnel 1,450 1,041,686 1,040,236
Public safety-operations 286,762 653,115 366,353
Public works-operations 2,001,356 5,634,406 3,633,050
Health and welfare-personnel - 6,591 6,591
Health and welfare-operations 181,593 365,673 184,080
Community and economic development-personnel 91,330 543,454 452,124
Community and economic development-operations 41987,724 14,832,153 9,844,429
Recreation and culture-personnel - 100 100
Recreation and culture-operations 38,046 38,046
Transfers out 4,260,973 4,260,973
138
CITY OF LANSING
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1 -EXCESS OF EXPENDITURES OVER APPROPRIATIONS (concluded)
Amounts Amounts
Appropriated Expended Variance
Major Streets Fund
Current
Highways and streets-personnel $ 2,306,683 $ 2,940,711 $ 634,028
Debt service 252,606 438,323 185,717
Local Streets Fund
Current
Highways and streets-personnel 2,817,127 3,369,527 552,400
CERA-MSHDA Fund
Current
Community and economic development-operations - 115,091 115,091
Drug Law Enforcement Federal Fund
Current
Public safety-operations 200 587 387
CDBG Program Fund
Current
Community development-operations 1,747,239 2,207,577 460,338
Disaster Contingency Fund
Current
Public safety-operations 500,000 910,000 410,000
Downtown Lansing Inc.Fund
Current
General government-operations 1,508,690 2,274,765 766,075
Debt service - 62,235 62,235
Capital outlay - 385,798 385,798
Building Department Fund
Current
Public safety-personnel 2,654,057 3,446,861 792,804
Tri-County Metro Fund
Current
Public safety-operations 166,000 202,188 36,188
139
OTHER SUPPLEMENTARY INFORMATION
140
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
141
CITY OF LANSING
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2025
Special Debt Capital
Revenue Service Projects Permanent
Funds Funds Funds Funds Total
ASSETS
Cash and cash equivalents $ 777,980 $ - $ 393,772 $ $ 1,171,752
Cash and cash equivalents-restricted - 11,003,980 35,362,506 46,366,486
Equity in pooled cash and investments 35,700,702 1,800,603 8,180,B33 207,929 45,890,067
Investments - - - 2,026,085 2,026,085
Receivables
Accounts,net 896,069 4,857,640 - 5,753,709
Loans 1,185,000 - 1,185,000
Accrued interest 2,527,946 - 2,527,946
Special assessments
Current - 410,894 410,894
Noncurrent - 9,382,100 9,382,100
Due from other governmental units 6,360,445 - 6,360,445
Inventories 1,858,900 1,858,900
TOTAL ASSETS $ 49,307,042 $ 12,804,583 $ 58,587,745 $ 2,234,014 $ 122,933,384
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts payable $ 1,542,513 $ $ 2,508,920 $ $ 4,051,433
Accrued liabilities 71,494 71,494
Indemnity bonds 43,867 43,867
Due to other funds 424,862 424,862
Due to other governmental units 250,000 250,000
Undistributed forfeitures 39,918 - 39,918
Unearned revenue 384,546 50,000 434,546
TOTAL LIABILITIES 2,757,200 2,558,920 5,316,120
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-loans and accrued interest receivable 5,754,596 4,725,000 10,479,596
Unavailable revenue-special assessments 9,792,994 9,792,994
TOTAL DEFERRED INFLOWS OF RESOURCES 5,754,596 14,517,994 20,272,590
FUND BALANCES
Nonspendable 1,858,900 - 2,234,014 4,092,914
Restricted 37,772,738 12,804,583 35,416,424 - 85,993,745
Committed 1,163,608 6,094,407 7,258,015
TOTAL FUND BALANCES 40,795,246 12,804,583 41,510,831 2,234,014 97,344,674
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES,AND FUND BALANCES $ 49,307,042 $ 12,804,583 $ 58,587,745 $ 2,234,014 $ 122,933,384
142
CITY OF LANSING
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2025
Special Debt Capital
Revenue Service Projects Permanent
Funds Funds Funds Funds Total
REVENUES
Property taxes and special assessments $ 472,619 $ 10,271,803 $ 1,801,246 $ $ 12,545,668
Intergovernmental 30,179,679 - 20,000,000 50,179,679
Charges for services 5,624,754 372,401 5,997,155
Fines and forfeits 76,483 - - 76,483
Interest income and rents 1,266,361 641,153 1,148,992 180,058 3,236,564
Other 554,321 - 14,845 - 569,166
TOTAL REVENUES 38,174,217 10,912,956 23,337,484 180,058 72,604,715
EXPENDITURES
Current
General government 2,648,869 - - - 2,648,869
Public safety 5,765,704 5,765,704
Highways and streets 11,063,994 11,063,994
Community and economic development 3,176,712 3,176,712
Debt service
Principal 733,115 1,970,000 1,430,000 4,133,115
Interest and fiscal charges 205,765 8,916,538 974,540 10,096,843
Capital outlay 11,270,044 - 8,942,458 20,212,502
TOTAL EXPENDITURES 34,864,203 10,886,538 11,346,998 57,097,739
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 3,310,014 26,418 11,990,486 180,058 15,506,976
OTHER FINANCING SOURCES(USES)
Lease related 385,798 - - - 385,798
Transfers in 4,085,000 901,525 600,000 5,586,525
Transfers out (4,000,000) - (2,441,758) (6,441,758)
TOTAL OTHER FINANCING
SOURCES(USES) 470,798 901,525 (1,841,758) (469,435)
NET CHANGE IN FUND BALANCES 3,780,812 927,943 10,148,728 180,058 15,037,541
Fund balances,beginning of year 37,014,434 11,876,640 31,362,103 2,053,956 82,307,133
Fund balances,end of year $ 40,795,246 $ 12,804,583 $ 41,510,831 $ 2,234,014 $ 97,344,674
143
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
Major Streets Fund
This fund accounts for revenues received from the State of Michigan for the City's share of state gasoline and weight taxes,
which is restricted for maintenance of major streets.
Local Streets Fund
This fund accounts for revenues received from the State of Michigan for the City's share of state gasoline and weight taxes,
which is restricted for maintenance of local streets.
CERA-MSHDA Grant Fund
This fund accounts for all revenues received from the CERA grant through Michigan State Housing Development Authority.
These revenues are used for projects as detailed in individual grant applications.
Drug Law Enforcement Federal Fund
This fund accounts for federal revenues,from the Departments of Justice and Treasury,set aside for drug law enforcement
under the provisions of Federal Grant Agreements.
Drug Law Enforcement State and Local Fund
This fund accounts for state and local revenues, from the Departments of Justice and Treasury, set aside for drug law
enforcement under the provisions of State of Michigan Public Act 135 of 1985,as amended.
Community Development Block Grant Program Fund
This fund accounts for revenues received from the Department of Housing and Urban Development. These revenues are
restricted to accomplishing the various objectives of Community Development Block Grant Programs,within specific target
areas.
Disaster Contingency Fund
This fund accounts for revenues received from Disaster Contingency funds and related restricted expenditures.
Opioid Settlement Fund
This fund accounts for revenues received from Opioid Settlement funds, and restricted for treatment, prevention, and
remediation.
Downtown Lansing.Inc.Fund
This fund accounts for assessments received from businesses located in the district. The revenues are used for special events
and maintenance of the district.
Building Department Fund
This fund accounts for revenues and expenditures resulting from the enforcement of the State Construction Code Act of
1999 (PA 245 of 1999).
Parks Department Fund
This fund accounts for contributions and transfers which are restricted for park expenditures.
Tri-County Metro Fund
This fund accounts for the operations of the Tri-County Metro Narcotics Squad.
144
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2025
Drug Law
Drug Law Enforcement
CERA- Enforcement State and
Major Streets Local Streets MSHDA Federal Local
ASSETS
Cash and cash equivalents $ - $ - $ $ - $ 23,000
Equity in pooled cash and investments 24,811,909 4,025,914 266,200 296,371
Receivables
Accounts,net 63,452 808,822 - -
Loans - -
Accrued interest
Due from other funds - -
Due from other governmental units 2,415,218 643,815 400,000
Inventories 1,858,900 - -
TOTAL ASSETS $ 29,149,479 $ 5,478,551 $ 400,000 $ 266,200 $ 319,371
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES,AND FUND BALANCES
LIABILITIES
Accounts payable $ 598,703 $ 504,201 $ $ $ 25,750
Accrued payroll and related 4,556 1,425 -
Indemnity bonds 43,867 -
Due to other funds - 16,824
Due to other governmental units -
Undistributed forfeitures -
Unearned revenue - - 383,176 -
TOTAL LIABILITIES 647,126 505,626 400,000 25,750
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
FUND BALANCES
Nonspendable 1,858,900 - -
Restricted 26,643,453 4,972,925 266,200 293,621
Committed - - -
TOTAL FUND BALANCES 28,502,353 4,972,925 - 266,200 293,621
TOTAL LIABILITIES,DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES $ 29,149,479 $ 5,478,551 $ 400,000 $ 266,200 $ 319,371
145
Community
Development Disaster
Block Grant Contingency Opioid Downtown Building Parks Tri-County
Program Fund Settlement Lansing,Inc. Department Department Metro Total
$ $ - $ 729,980 $ - $ - $ - $ 25,000 $ 777,980
288,568 - 700,928 4,299,245 546,042 465,525 35,700,702
- - 23,795 - - 896,069
1,185,000 - 1,185,000
2,527,946 2,527,946
603,451 2,134,366 14 163,581 6,360,445
- - - - - - 1,858,900
$ 4,316,397 $ 288,568 $ 2,864,346 $ 700,942 $ 4,323,040 $ 546,042 $ 654,106 $ 49,307,042
$ 272,320 $ - $ 74,065 $ 36,378 $ 5,826 $ - $ 25,270 $ 1,542,513
15,509 - 8,602 38,305 3,097 71,494
- - - - 43,867
408,038 - 424,862
- 250,000 250,000
- - 39,918 39,918
300 - - 1,070 384,546
696,167 74,065 44,980 45,201 318,285 2,757,200
3,620,230 2,134,366 - - - 5,754,596
- - - - - 1,858,900
655,915 655,962 3,948,841 - 335,821 37,772,738
288,568 - - 328,998 546,042 - 1,163,608
- 288,568 655,915 655,962 4,277,839 546,042 335,821 40,795,246
$ 4,316,397 $ 288,568 $ 2,864,346 $ 700,942 $ 4,323,040 $ 546,042 $ 654,106 $ 49,307,042
146
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2025
Drug Law
Drug Law Enforcement
CERA- Enforcement State and
Major Streets Local Streets MSHDA Federal Local
REVENUES
Property taxes and special assessments $ - $ - $ - $ $
Intergovernmental 20,335,653 4,039,049 115,091
Charges for services 1,575,245 - - -
Fines and forfeits - - 5,772
Interest and rents 1,051,509 115,540 10,930 15,531
Other revenues 157,192 - - -
TOTAL REVENUES 23,119,599 4,154,589 115,091 10,930 21,303
EXPENDITURES
Current
General government - - - - -
Public safety - - 587 124,326
Highways and streets 5,719,988 5,344,006 - - -
Community development - - 115,091
Debt service
Principal 342,050 342,049 -
Interest 96,273 96,273
Capital outlay 9,281,022 1,603,224 - - -
TOTAL EXPENDITURES 15,439,333 7,385,552 115,091 587 124,326
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 7,680,266 (3,230,963) - 10,343 (103,023)
OTHER FINANCING SOURCES(USES)
Lease related - - -
Transfers in - 4,000,000
Transfers out (4,000,000) -
TOTAL OTHER FINANCING
SOURCES(USES) (4,000,000) 4,000,000 -
NET CHANGE IN FUND BALANCES 3,680,266 769,037 10,343 (103,023)
Fund balances,beginning of year 24,822,087 4,203,888 255,857 396,644
Fund balances,end of year $ 28,502,353 $ 4,972,925 $ $ 266,200 $ 293,621
147
Community
Development Disaster
Block Grant Contingency Opioid Downtown Building Parks Tri-County
Program Fund Settlement Lansing,Inc. Department Department Metro Total
$ - $ $ - $ 472,619 $ $ $ $ 472,619
2,955,274 215,947 2,518,665 30,179,679
- - - 4,049,509 5,624,754
- - 70,711 76,483
- 29,663 - 22,397 20,791 1,266,361
106,347 - 290,782 - - - 554,321
3,061,621 245,610 3,282,066 4,049,509 22,397 91,502 38,174,217
- - 2,648,869 - - - 2,648,869
910,000 378,984 - 4,109,515 242,292 5,765,704
- - - - - 11,063,994
3,061,621 - 3,176,712
- 49,016 733,115
13,219 205,765
- - - 385,798 11,270,044
3,061,621 910,000 378,984 3,096,902 4,109,515 - 242,292 34,864,203
- (910,000) (133,374) 185,164 (60,006) 22,397 (150,790) 3,310,014
385,798 - 385,798
85,000 4,085,000
- (4,000,000)
470,798 - 470,798
(910,000) (133,374) 655,962 (60,006) 22,397 (150,790) 3,780,812
1,198,568 789,289 - 4,337,845 523,645 486,611 37,014,434
$ $ 288,568 $ 655,915 $ 655,962 $ 4,277,839 $ 546,042 $ 335,821 $ 40,795,246
148
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Major Streets Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 20,750,000 $ 20,750,000 $ 20,335,653 $ (414,347)
Charges for services 1,310,000 1,310,000 1,575,245 265,245
Interest and rents - - 1,051,509 1,051,509
Other revenues 10,000 10,000 157,192 147,192
TOTAL REVENUES 22,070,000 22,070,000 23,119,599 1,049,599
EXPENDITURES
Current
Highways and streets
Personnel 2,166,683 2,306,683 2,940,711 (634,028)
Operations 3,925,711 3,925,711 2,779,277 1,146,434
Debt service
Principal 206,438 206,438 342,050 (135,612)
Interest 46,168 46,168 96,273 (50,105)
Capital outlay 13,125,000 13,125,000 9,281,022 3,843,978
TOTAL EXPENDITURES 19,470,000 19,610,000 15,439,333 4,170,667
EXCESS OF REVENUES OVER EXPENDITURES 2,600,000 2,460,000 7,680,266 5,220,266
OTHER FINANCING(USES)
Transfers out (4,000,000) (4,000,000) (4,000,000)
NET CHANGE IN FUND BALANCE (1,400,000) (1,540,000) 3,680,266 5,220,266
Fund balance,beginning of year 24,822,087 24,822,087 24,822,087 -
Fund balance,end of year $ 23,422,087 $ 23,282,087 $ 28,502,353 $ 5,220,266
149
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Local Streets Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 4,450,000 $ 4,450,000 $ 4,039,049 $ (410,951)
Interest and rents - - 115,540 115,540
TOTAL REVENUES 4,450,000 4,450,000 4,154,589 (295,411)
EXPENDITURES
Current
Highways and streets
Personnel 2,677,127 2,817,127 3,369,527 (552,400)
Operations 3,532,773 3,532,773 1,974,479 1,558,294
Debt service
Principal 477,750 477,750 342,049 135,701
Interest 142,350 142,350 96,273 46,077
Capital outlay 4,330,000 4,330,000 1,603,224 2,726,776
TOTAL EXPENDITURES 11,160,000 11,300,000 7,385,552 3,914,448
EXCESS OF REVENUES
(UNDER)EXPENDITURES (6,710,000) (6,850,000) (3,230,963) 3,619,037
OTHER FINANCING SOURCES
Transfers in 6,710,000 6,710,000 4,000,000 (2,710,000)
NET CHANGE IN FUND BALANCE - (140,000) 769,037 909,037
Fund balance,beginning of year 4,203,888 4,203,888 4,203,888 -
Fund balance,end of year $ 4,203,888 $ 4,063,888 $ 4,972,925 $ 909,037
150
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
CERA-MSHDA Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ $ $ 115,091 $ 115,091
EXPENDITURES
Current
Community and economic development
Operations 115,091 (115,091)
NET CHANGE IN FUND BALANCE -
Fund balance,beginning
Fund balance,ending $ $ $ $
151
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Drug Law Enforcement Federal Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Charges for services $ - $ - $ - $ -
Interest and rents 200 200 10,930 10,730
TOTAL REVENUES 200 200 10,930 10,730
EXPENDITURES
Current
Public safety-operations 200 200 587 (387)
NET CHANGE IN FUND BALANCE - - 10,343 10,343
Fund balance,beginning of year 255,857 255,857 255,857 -
Fund balance,end of year $ 255,857 $ 255,857 $ 266,200 $ 10,343
Drug Law Enforcement State and Local Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Fines and forfeitures $ 60,500 $ 60,500 $ 5,772 $ (54,728)
Interest and rents 500 500 15,531 15,031
TOTAL REVENUES 61,000 61,000 21,303 (39,697)
EXPENDITURES
Current
Public safety-operations 161,000 161,000 124,326 36,674
NET CHANGE IN FUND BALANCE (100,000) (100,000) (103,023) (3,023)
Fund balance,beginning of year 396,644 396,644 396,644
Fund balance,end of year $ 296,644 $ 296,644 $ 293,621 $ (3,023)
152
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
CDBG Program Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 2,070,597 $ 2,070,597 $ 2,955,274 $ 884,677
Other revenues 600,000 600,000 106,347 (493,653)
TOTAL REVENUES 2,670,597 2,670,597 3,061,621 391,024
EXPENDITURES
Current
Community development
Personnel 1,057,483 1,057,483 854,044 203,439
Operations 1,747,239 1,747,239 2,207,577 (460,338)
TOTAL EXPENDITURES 2,804,722 2,804,722 3,061,621 (256,899)
EXCESS OF REVENUES
(UNDER)EXPENDITURES (134,125) (134,125) - 134,125
OTHER FINANCING SOURCES
Transfers in 134,125 134,125 (134,125)
NET CHANGE IN FUND BALANCE - -
Fund balance,beginning of year
Fund balance,end of year $ $ $ $
153
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Disaster Contingency Fund
Variances with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental $ 500,000 $ 500,000 $ - $ (500,000)
EXPENDITURES
Current
Public safety-operations 500,000 500,000 910,000 (410,000)
NET CHANGE IN FUND BALANCE - - (910,000) (910,000)
Fund balance,beginning 1,198,568 1,198,568 1,198,568
Fund balance,ending $ 1,198,568 $ 1,198,568 $ 288,568 $ (910,000)
Onioid Settlement Fund
Variances with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental $ 201,000 $ 201,000 $ 215,947 $ 14,947
Interest - - 29,663 29,663
TOTAL REVENUES 201,000 201,000 245,610 44,610
EXPENDITURES
Current
Public safety-operations 201,000 939,674 378,984 560,690
NET CHANGE IN FUND BALANCE - (738,674) (133,374) 605,300
Fund balance,beginning 789,289 789,289 789,289 -
Fund balance,ending $ 789,289 $ 50,615 $ 655,915 $ 605,300
154
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Downtown Lansing,Inc.Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes and special assessments $ 467,000 $ 467,000 $ 472,619 $ 5,619
Intergovernmental 1,095,000 1,095,000 2,518,665 1,423,665
Other revenues 288,200 288,200 290,782 2,582
TOTAL REVENUES 1,850,200 1,850,200 3,282,066 1,431,866
EXPENDITURES
Current
General government
Personnel 426,510 426,510 374,104 52,406
Operations 1,508,690 1,508,690 2,274,765 (766,075)
Debt service
Principal - - 49,016 (49,016)
Interest 13,219 (13,219)
Capital outlay - 385,798 (385,798)
TOTAL EXPENDITURES 1,935,200 1,935,200 3,096,902 (1,161,702)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (85,000) (85,000) 185,164 270,164
OTHER FINANCING SOURCES
Lease related - - 385,798 385,798
Transfers in 85,000 85,000 85,000
TOTAL OTHER FINANCING SOURCES 85,000 85,000 470,798 385,798
NET CHANGE IN FUND BALANCE - - 655,962 655,962
Fund balance,beginning of year - -
Fund balance,end of year $ $ $ 655,962 $ 655,962
155
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Building Department Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Charges for services $ 2,865,000 $ 2,865,000 $ 4,049,509 $ 1,184,509
EXPENDITURES
Current
Public safety
Personnel 2,554,057 2,654,057 3,446,861 (792,804)
Operations 810,943 810,943 662,654 148,289
TOTAL EXPENDITURES 3,365,000 3,465,000 4,109,515 (644,515)
NET CHANGE IN FUND BALANCE (500,000) (600,000) (60,006) 539,994
Fund balance,beginning of year 4,337,845 4,337,845 4,337,845 -
Fund balance,end of year $ 3,837,845 $ 3,737,845 $ 4,277,839 $ 539,994
Parks Department Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Interest and rents $ $ $ 22,397 $ 22,397
NET CHANGE IN FUND BALANCE 22,397 22,397
Fund balance,beginning of year 523,645 523,645 523,645 -
Fund balance,end of year $ 523,645 $ 523,645 $ 546,042 $ 22,397
156
CITY OF LANSING
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2025
Tri-County Metro Fund
Variances with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 400,000 $ 400,000 $ - $ (400,000)
Fines and forfeitures 50,000 50,000 70,711 20,711
Interest and rents - - 20,791 20,791
TOTAL REVENUES 450,000 450,000 91,502 (358,498)
EXPENDITURES
Current
Public safety
Personnel 84,000 84,000 40,104 43,896
Operations 166,000 166,000 202,188 (36,188)
TOTAL EXPENDITURES 250,000 250,000 242,292 7,708
NET CHANGE IN FUND BALANCE 200,000 200,000 (150,790) (350,790)
Fund balance,beginning of year 486,611 486,611 486,611
Fund balance,end of year $ 686,611 $ 686,611 $ 335,821 $ (350,790)
157
CITY OF LANSING
NONMAJOR DEBT SERVICE FUNDS
1999 Fire Station Fund
This fund accounts for the accumulation of resources for payment of the 1999$3,000,000 Unlimited Tax General
Obligation Bonds (which was refunding in 2007 in the amount of$1,780,000).
Public Safety Fund
This fund accounts for the premium related to the 2023B Capital Improvement Bond.
Ovation Fund
This fund accounts for the premium related to the Capital Improvement Bonds,Series 2023.
158
CITY OF LANSING
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
JUNE 30,2025
1999 Fire Public Safety Ovation Debt
Station Debt Service Service Total
ASSETS
Equity in pooled cash and investments $ 29,361 $ 1,771,242 $ $ 1,800,603
Cash and cash equivalents-restricted - 11,003,980 11,003,980
TOTAL ASSETS $ 29,361 $ 12,775,222 $ $ 12,804,583
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to other funds $ - $ - $ - $ -
FUND BALANCES
Restricted 29,361 12,775,222 12,804,583
TOTAL LIABILITIES AND
FUND BALANCES $ 29,361 $ 12,775,222 $ $ 12,804,583
159
CITY OF LANSING
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30,2025
1999 Fire Public Safety Ovation Debt
Station Debt Service Service Total
REVENUES
Property taxes and special assessments $ $ 10,271,803 $ $ 10,271,803
Interest and rents 641,153 641,153
TOTAL REVENUES 10,912,956 10,912,956
EXPENDITURES
Debt service
Principal 1,970,000 1,970,000
Interest and fiscal charges 8,015,013 901,525 8,916,538
TOTAL EXPENDITURES 9,985,013 901,525 10,886,538
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 927,943 (901,525) 26,418
OTHER FINANCING SOURCES
Transfers in - 901,525 901,525
NET CHANGE IN FUND BALANCES 927,943 - 927,943
Fund balances,beginning of year 29,361 11,847,279 11,876,640
Fund balances,end of year $ 29,361 $ 12,775,222 $ $ 12,804,583
160
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
Special Assessments Fund
This fund is used to account for the financing of public improvements deemed to benefit the properties against
which special assessments are levied.
Montgomery Drain Fund
This fund is used to account for the financing of public improvements deemed to benefit the properties against
which special assessments are levied,specifically for the Montgomery Drain.
Ovation Capital Projects Fund
This fund is used to account for the capital project activity,not including financing,related to the Ovation project.
Ovation Capital Improvements Fund
This fund is used to account for the financing and capital project activity related to the Ovation project.
City Hall Capital Projects Fund
This fund is used to account for the financing and capital project activity related to the City Hall project.
Other Capital Projects Fund
This fund accounts for miscellaneous capital projects.
161
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2025
Ovation Ovation
Special Montgomery Capital Project Capital City Hall Capital Other Capital
Assessments Drain Fund Improvements Projects Projects Total
ASSETS
Cash and cash equivalents $ $ $ $ - $ - $ 393,772 $ 393,772
Cash and cash equivalents-restricted 17,975,861 17,386,645 - 35,362,506
Equity in pooled cash and investments 89,951 1,788,6S3 750 172,810 - 6,128,669 8,180,833
Receivables
Accounts and loan receivable - - - - 4,857,640 4,857,640
Special assessments
Current 17,035 393,859 - 410,894
Noncurrent 12,196 9,369,904 9,382,100
Due from other funds
TOTAL ASSETS $ 119,182 $ 11,552,416 $ 750 $ 18,148,671 $ 17,386,645 $ 11,380,081 $ 58,587,745
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES,AND FUND BALANCES
LIABILITIES
Accounts payable $ $ $ 750 $ 126,377 $ 1,871,119 $ 510,674 $ 2,508,920
Unearned revenue 50,000 50,000
TOTAL LIABILITIES 750 126,377 1,871,119 560,674 2,558,920
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Loans and accrued interest receivable - - - - - 4,72S,000 4,725,000
Special assessments 29,231 9,763,763 9,792,994
TOTAL DEFERRED INFLOWS
OF RESOURCES 29,231 9,763,763 4,725,000 14,517,994
FUND BALANCES
Restricted 89,951 1,788,653 18,022,294 15,515,526 - 35,416,424
Committed 6,094,407 6,094,407
TOTAL FUND BALANCES 89,951 1,788,653 18,022,294 15,515,526 6,094,407 41,510,831
TOTAL LIABILITIES,DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES $ 119,182 $ 11,5S2,416 $ 750 $ 18,148,671 $ 17,386,645 $ 11,380,081 $ 58,587,745
162
CITY OF LANSING
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2025
Ovation Ovation
Special Montgomery Capital Project Capital City Hall Capital Other Capital
Assessments Drain Fund Improvements Projects Projects Total
REVENUES
Property taxes and special assessments $ 17,034 $ 1,784,212 $ $ $ - $ $ 1,801,246
Intergovernmental - - 20,000,000 20,000,000
Charges for services - 372,401 372,401
Interest and rents 246,520 347,104 555,368 1,148,992
Other
Donations and contributions 14,845 14,845
TOTAL REVENUES 17,034 1,784,212 246,520 20,347,104 942,614 23,337,484
EXPENDITURES
Debt service
Principal - 730,000 - - 700,000 1,430,000
Interest and fiscal charges 760,622 213,918 974,540
Capital outlay 750 2,248,969 4,831,578 1,861,161 8,942,458
TOTAL EXPENDITURES 1,490,622 750 2,248,969 4,831,578 2,775,079 11,346,998
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 17,034 293,590 (750) (2,002,449) 15,515,526 (1,832,465) 11,990,486
OTHER FINANCING SOURCES(USES)
Transfers in - 600,000 600,000
Transfers out (704,233) (1,737,525) (2,441,758)
TOTAL OTHER FINANCING
SOURCES(USES) - (704,233) (1,137,525) (1,841,758)
NET CHANGE IN FUND BALANCES 17,034 293,590 (704,983) (2,002,449) 15,515,526 (2,969,990) 10,148,728
Fund balances,beginning of year 72,917 1,495,063 704,983 20,024,743 9,064,397 31,362,103
Fund balances,end of year $ 89,951 $ 1,788,653 $ $ 18,022,294 $ 15,515,526 $ 6,094,407 $ 41,510,831
163
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
Cemetery Perpetual Care Fund
This fund accounts for transfers from the Cemetery Fund, representing 1S% 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.
164
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
COMBINING BALANCE SHEET
JUNE 30,2025
Cemetery
Perpetual Care Parks Trust Total
ASSETS
Equity in pooled cash and investments $ 206,476 $ 1,453 $ 207,929
Investments 2,026,085 - 2,026,085
TOTAL ASSETS $ 2,232,561 $ 1,453 $ 2,234,014
FUND BALANCES
Nonspendable $ 2,232,561 $ 1,453 $ 2,234,014
165
CITY OF LANSING
NONMAJOR PERMANENT FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2025
Cemetery
Perpetual Care Parks Trust Total
REVENUES
Interest income and rents $ 179,998 $ 60 $ 180,058
Fund balances,beginning of year 2,052,563 1,393 2,053,956
Fund balances,end of year $ 2,232,561 $ 1,453 $ 2,234,014
166
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
Cemetery Fund
This fund accounts for the operation of City-owned cemeteries.
Golf Fund
This fund accounts for the operation of the City-owned golf courses.
Garbage and Rubbish Collection Fund
This fund accounts for the provision of household solid waste disposal services to participating residents of the
City.
Recycling Fund
This fund accounts for the provision of recycling services to participating residents of the City.
167
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
ASSETS
Current assets
Cash and cash equivalents $ 200 $ - $ - $ - $ 200
Equity in pooled cash and investments 687,614 22,600 2,756,138 3,404,519 6,870,871
Accounts receivable,net - - 479,187 - 479,187
Inventories 53,372 - - - 53,372
Total current assets 741,186 22,600 3,235,325 3,404,519 7,403,630
Noncurrent assets
Capital assets not being depreciated 57,740 345,647 - - 403,387
Capital assets being depreciated,net 28,261 1,415,272 567,498 2,011,031
Total noncurrent assets 86,001 1,760,919 - 567,498 2,414,418
TOTAL ASSETS 827,187 1,783,519 3,235,325 3,972,017 9,818,048
DEFERRED OUTFLOW OF RESOURCES
Deferred outflows of resources related to pension 3,217 5,961 7,558 16,736
LIABILITIES
Current liabilities
Accounts payable 34,987 101,467 592,351 728,805
Accrued payroll 3,057 2,156 - 5,213
Current portion of compensated absences 1,700 3,397 3,723 8,820
Total current liabilities 39,744 107,020 596,074 742,838
Noncurrent liabilities
Compensated absences,net of current portion 37,844 75,651 82,910 196,405
Net pension liability 1,364,472 2,528,270 3,205,518 7,098,260
Net other postemployment benefit liability 421,279 780,601 989,701 2,191,581
Total noncurrent liabilities 1,823,595 3,384,522 4,278,129 9,486,246
TOTAL LIABILITIES 1,863,339 3,491,542 4,874,203 10,229,084
DEFERRED INFLOW OF RESOURCES
Deferred inflows of resources related to pension 40,546 75,129 95,254 210,929
Deferred inflows of resources related to OPEB 89,943 166,658 211,300 467,901
TOTAL DEFERRED INFLOWS OF RESOURCES 130,489 241,787 306,554 678,830
NET POSITION(DEFICIT)
Investment in capital assets 86,001 1,760,919 - 567,498 2,414,418
Unrestricted (1,249,425) 22,600 (492,043) (1,768,680) (3,487,548)
TOTAL NET POSITION(DEFICIT) $ (1,163,424) $ 1,783,519 $ (492,043) $ (1,201,182) $ (1,073,130)
168
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,
AND CHANGES IN FUND NET POSITION
YEAR ENDED JUNE 30,2025
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
OPERATING REVENUES
Charges for services $ 512,978 $ $ 3,894,988 $ 4,896,765 $ 9,304,731
OPERATING EXPENSES
Personnel services 1,038,420 1,321,385 1,398,976 3,758,781
Purchase of goods and services 325,098 85,161 1,999,190 1,731,425 4,140,874
Depreciation 9,827 56,742 17,866 84,435
TOTAL OPERATING EXPENSES 1,373,345 141,903 3,320,575 3,148,267 7,984,090
OPERATING INCOME(LOSS) (860,367) (141,903) 574,413 1,748,498 1,320,641
NONOPERATING REVENUES
Interest revenue - 154,737 154,737
NET INCOME(LOSS)
BEFORE TRANSFERS (860,367) (141,903) 574,413 1,903,235 1,475,378
TRANSFERS
Transfers in 636,000 100,000 - - 736,000
CHANGE IN NET POSITION (224,367) (41,903) 574,413 1,903,235 2,211,378
Net position(deficit),beginning of year (939,057) 1,825,422 (1,066,456) (3,104,417) (3,284,508)
Net position(deficit),end of year $ (1,163,424) $ 1,783,519 $ (492,043) $ (1,201,182) $ (1,073,130)
169
CITY OF LANSING
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2025
Garbage and
Rubbish
Cemetery Golf Collection Recycling Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 512,978 $ - $ 3,863,222 $ 4,896,765 $ 9,272,965
Cash payments for good and services (325,100) (85,161) (2,101,965) (1,739,568) (4,251,794)
Cash payments to employees (688,003) - (1,898,922) (2,080,504) (4,667,429)
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES (500,125) (85,161) (137,665) 1,076,693 353,742
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 636,000 100,000 - 736,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of capital assets - - (579,997) (579,997)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments - -
Interest and dividends received - - 154,737 154,737
NET CHANGE IN CASH AND
CASH EQUIVALENTS 135,875 14,839 (137,665) 651,433 664,482
Cash and cash equivalents,beginning of year 551,939 7,761 2,893,803 2,753,086 6,206,589
Cash and cash equivalents,end of year $ 687,814 $ 22,600 $ 2,756,138 $ 3,404,519 $ 6,871,071
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities
Operating income(loss) $ (860,367) $ (141,903) $ 574,413 $ 1,748,498 $ 1,320,641
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
Depreciation 9,827 56,742 - 17,866 84,435
Changes in:
Accounts receivable - - (31,766) - (31,766)
Inventory (851) - - (851)
Deferred outflows-pension 39,840 106,618 133,703 280,161
Deferred outflows-OPEB 442 1,155 1,450 3,047
Accounts payable 849 (102,775) (8,143) (110,069)
Accrued payroll 1,561 2,156 3,717
Compensated absences 11,067 (5,695) (7,710) (2,338)
Net pension liability 247,207 (392,994) (460,010) (605,797)
Deferred inflows-pension 35,228 61,225 77,808 174,261
Net other postemployment benefit liability (23,644) (382,720) (470,005) (876,369)
Deferred inflows-OPEB 38,716 - 32,718 43,236 114,670
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES $ (500,125) $ (85,161) $ (137,665) $ 1,076,693 $ 353,742
170
CITY OF LANSING
INTERNAL SERVICE FUNDS
Fleet Maintenance Fund
This fund accounts for the costs of maintaining the City's fleet of vehicles and heavy equipment.
Fringe Benefits Fund
This fund accounts for the costs of the City's fringe benefits.
Engineering Fund
This fund accounts for the operations of the City's engineering department.
Information Technology Fund
This fund accounts for the operations of the City's information technology department.
City 311 Fund
This fund accounts for the operations of the City's 311 department.
171
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025
Fleet Fringe Information
Maintenance Benefits Engineering Technology City 311 Total
ASSETS
Current assets
Equity in pooled cash and investments $ 1,696,549 $ 2,984,950 $ 1,358,032 $ 1,311,068 $ 44,161 $ 7,394,760
Accounts receivable,net 28,004 2,233,713 - 80 - 2,261,797
Inventories 605,119 - - 605,119
Prepaids - 1,774,403 - 1,774,403
Total current assets 2,329,672 6,993,066 1,358,032 1,311,148 44,161 12,036,079
Noncurrent assets
Capital assets not being depreciated/amortized 92,892 - - - - 92,892
Capital assets being depreciated/amortized,net 12,132,942 1,207,379 2,261,215 15,601,536
Total noncurrent assets 12,225,834 1,207,379 2,261,215 15,694,428
TOTAL ASSETS 14,555,506 6,993,066 2,565,411 3,572,363 44,161 27,730,507
LIABILITIES
Current liabilities
Accounts payable 276,310 1,628,037 6,769 146,126 73 2,057,315
Accrued payroll 58,144 21,579 64,885 38,872 12,392 195,872
Accrued interest payable 2,701 - - - - 2,701
Claims incurred but not reported - 1,741,866 1,741,866
Due to other funds 3,543,795 3,543,795
Current portion of:
Long-term obligations 135,183 788,077 923,260
Compensated absences 871 3,806 4,677
Total current liabilities 473,209 6,935,277 71,654 976,881 12,465 8,469,486
Noncurrent liabilities
Long-term obligations,net of current portion 636,330 1,564,906 2,201,236
Compensated absences,net of current portion 164,540 55,929 522,385 266,301 23,999 1,033,154
Total noncurrent liabilities 800,870 55,929 522,385 1,831,207 23,999 3,234,390
TOTAL LIABILITIES 1,274,079 6,991,206 594,039 2,808,088 36,464 11,703,876
NET POSITION
Net investment in capital assets 11,454,321 1,207,379 (91,768) 12,569,932
Unrestricted 1,827,106 1,860 763,993 856,043 7,697 3,456,699
TOTAL NET POSITION $ 13,281,427 $ 1,860 $ 1,971,372 $ 764,275 $ 7,697 $ 16,026,631
172
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,
AND CHANGES IN FUND NET POSITION
YEAR ENDED JUNE 30,2025
Fleet Fringe Information
Maintenance Benefits Engineering Technology City 311 Total
OPERATING REVENUES
Charges for services $ 3,497,107 $ 103,958,741 $ 3,900,545 $ 8,532,503 $ 1,080,000 $ 120,968,896
Miscellaneous 63,476 217,601 1,758 - 282,835
TOTAL OPERATING REVENUES 3,560,583 104,176,342 3,902,303 8,532,503 1,080,000 121,251,731
OPERATING EXPENSES
Personnel services 4,783,077 357,857 5,076,799 3,274,225 1,043,283 14,535,241
Purchase of goods and services 3,649,480 98,779,285 632,614 5,210,177 173,168 108,444,724
Depreciation/amortization 2,267,934 - 43,905 1,124,066 - 3,435,905
TOTAL OPERATING EXPENSES 10,700,491 99,137,142 5,753,318 9,608,468 1,216,451 126,415,870
OPERATING INCOME(LOSS) (7,139,908) 5,039,200 (1,851,015) (1,075,965) (136,451) (5,164,139)
NONOPERATING REVENUES(EXPENSES)
Interest revenue - - 48,196 48,196
Gain on sale of capital assets 181,242 181,242
Interest expense and fees (11,737) (23,647) (35,384)
TOTAL NONOPERATING
REVENUES(EXPENSES) 169,505 24,549 194,054
INCOME(LOSS)BEFORE TRANSFERS (6,970,403) 5,039,200 (1,851,015) (1,051,416) (136,451) (4,970,085)
TRANSFERS
Transfer out (287,726) - (287,726)
CHANGE IN NET POSITION (7,258,129) 5,039,200 (1,851,015) (1,051,416) (136,451) (5,257,811)
Net position(deficit),beginning of year 20,539,556 (5,037,340) 3,822,387 1,815,691 144,148 21,284,442
Net position,end of year $ 13,281,427 $ 1,860 $ 1,971,372 $ 764,275 $ 7,697 $ 16,026,631
173
CITY OF LANSING
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2025
Fleet Fringe Information
Maintenance Benefits Engineering Technology City 311 Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund services $ 3,536,091 $ 102,421,999 $ 3,902,303 $ 8,532,503 $ 1,080,000 $ 119,472,896
Cash payments for goods and services (3,982,590) (99,173,031) (638,544) (5,308,117) (173,120) (109,275,402)
Cash payments to employees (4,784,870) (264,018) (4,994,828) (3,242,577) (1,029,695) (14,315,988)
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES (5,231,369) 2,984,950 (1,731,069) (18,191) (122,815) (4,118,494)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 184,324 - 184,324
Purchase of capital assets (3,867,881) (3,867,881)
Principal paid on long-term obligations (133,311) (1,095,554) (1,228,865)
Interest paid on long-term obligations (12,203) (23,647) (35,850)
Transfers out (287,726) (287,726)
NET CASH(USED)BY CAPITAL AND
RELATED FINANCING ACTIVITIES (4,116,797) (1,119,201) (5,235,998)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 48,196 48,196
NET INCREASE(DECREASE)IN CASH
AND CASH EQUIVALENTS (9,348,166) 2,984,950 (1,731,069) (1,089,196) (122,815) (9,306,296)
Cash and cash equivalents,beginning of year 11,044,715 - 3,089,101 2,400,264 166,976 16,701,056
Cash and cash equivalents,end ofyear $ 1,696,549 $ 2,984,950 $ 1,358,032 $ 1,311,068 $ 44,161 $ 7,394,760
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities
Operating income(loss) $ (7,139,908) $ 5,039,200 $ (1,851,015) $ (1,075,965) $ (136,451) $ (5,164,139)
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
Depreciation/amortization 2,267,934 - 43,905 1,124,066 3,435,905
Change in:
Accounts receivable (24,492) (1,754,343) - (80) (1,778,915)
Prepaids - (274,403) - (274,403)
Inventories 54,846 54,846
Accounts payable (387,956) (119,343) (5,930) (97,860) 48 (611,041)
Due to other funds
Accrued payroll 16,332 (133,335) 29,625 14,677 5,893 (66,808)
Claims incurred but not reported - 241,276 - - - 241,276
Compensated absences (18,125) (14,102) 52,346 16,971 7,695 44,785
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES $ (5,231,369) $ 2,984,9S0 $ (1,731,069) $ (18,191) $ (122,815) $ (4,118,494)
174
CITY OF LANSING
FIDUCIARY FUNDS
Fiduciary Funds are funds set up to account for assets held by the City in a fiduciary capacity, for individuals,
organizations, other units of government or other funds. The City's fiduciary funds include pension and other
postemployment benefits trust funds and custodial funds.
PENSION AND OTHER POSTEMPLOYMENT BENEFITS TRUST FUNDS
Employees'Retirement System Pension
This fund accounts for all eligible employees (non-police and fire) activity, including investing fund resources
and calculating and paying pension benefits to applicable retirees (or beneficiaries).
Employees'Retirement System OPEB
This fund accounts for all eligible employees (non-police and fire) activities related to postemployment
healthcare coverage for applicable individuals.
Police and Fire Retirement System Pension
This fund accounts for all eligible employees' activity including investing fund resources and calculating and
paying pension benefits to applicable retirees (or beneficiaries).
Police and Fire Retirement System OPEB
This fund accounts for all eligible employees' activities related to postemployment healthcare coverage for
applicable individuals.
Employees'Money Purchase Pension Plan
This fund accounts for all newly hired eligible employees who participate in the City's defined contribution plan
to account for paying pension benefits to eligible retirees (or beneficiaries).
Retiree Healthcare VEBA
This fund accounts for all eligible employee's activity related to the defined benefit of postemployment
healthcare to provide medical and healthcare benefits for retirees and their beneficiaries.
CUSTODIAL FUNDS
Custodial funds account for resources received and held by the City, in a custodial capacity, for individuals,
organizations and other governments.
54-A District Court Fund
This fund is used to hold cash received by the District Court for bail bonds, for garnishment payments until
claimed,and to hold indemnity bonds deposited relating to civil disputes until the Court rules on the case.
Current Tax Collection Fund
This fund is used to account for property taxes collected and distributed to other governments.
175
CITY OF LANSING
FIDUCIARY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
Pension and Other Postemployment Benefits Trust Funds
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
ASSETS
Cash and cash equivalents $ 4,457,121 $ 1,430,114 $ 14,136,413 $ 3,368,556 $ - $ 1,039,681 $ 24,431,885
Investments
Mutual funds 124,468,786 39,922,498 228,301,996 54,401,928 9,040,140 48,933,819 505,069,167
Domestic equities 42,648,125 13,684,097 81,541,435 19,430,454 - - 157,304,111
International equities 766,666 245,993 1,471,408 350,621 - 2,834,688
Emerging market equities 10,369,174 3,327,058 15,834,950 3,773,300 677,266 33,981,748
Money market funds 2,706,196 882,926 4,227,409 1,007,346 1,126,245 9,950,122
Dividends and interest receivable 69,592 22,329 83,706 19,946 195,573
TOTAL ASSETS 185,485,660 59,515,015 345,597,317 82,352,151 9,040,140 51,777,011 733,767,294
LIABILITIES
Accounts payable 116,442 37,361 342,864 81,699 - - 578,366
Due to other governmental units 8,982,988 2,882,286 17,281,215 4,117,929 4,653 33,269,071
TOTAL LIABILITIES 9,099,430 2,919,647 17,624,079 4,199,628 4,653 33,847,437
NET POSITION
Restricted for:
Pension benefits 176,386,230 - 327,973,238 - 9,035,487 - 513,394,955
Other postemployment benefits 56,595,368 78,152,523 51,777,011 186,524,902
TOTAL NET POSITION $ 176,386,230 $ 56,595,368 $ 327,973,238 $ 78,152,523 $ 9,035,487 $ 51,777,011 $ 699,919,857
176
CITY OF LANSING
FIDUCIARY FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30,2025
Changes in Pension and Other Postemployment Benefits Net Position
Employees' Employees' Police Police Employees'
Retirement Retirement and Fire and Fire Money Retiree
System System Retirement Retirement Purchase Healthcare
Pension OPEB System System OPEB Pension Plan VEBA Totals
ADDITIONS
Investment income
Net appreciation(decrease)in fair
value of investments $ 20,474,055 $ 3,653,498 $ 37,733,484 $ 4,326,161 $ 1,545,958 $ 3,954,359 $ 71,687,515
Interest income(loss) 231,624 - (26,976) - - 984,572 1,189,220
Investment expenses (567,491) (806,367) (1,373,858)
Net investment income 20,138,188 3,653,498 36,900,141 4,326,161 1,545,958 4,938,931 71,502,877
Contributions
Employer 12,776,200 14,390,709 21,648,376 27,808,338 175,607 2,009,261 78,808,491
Nonemployer 2,361,715 - - - - 2,361,715
Plan members 1,536,435 3,275,511 664,948 5,476,894
Total contributions 16,674,350 14,390,709 24,923,887 27,808,338 840,555 2,009,261 86,647,100
TOTAL ADDITIONS 36,812,538 18,044,207 61,824,028 32,134,499 2,386,513 6,948,192 158,149,977
DEDUCTIONS
Participant benefits 24,793,019 8,449,770 39,228,002 12,287,069 - - 84,757,860
Administrative expense 219,606 503,094 316,957 1,163,925 1,055,061 180,082 3,438,725
TOTAL DEDUCTIONS 25,012,625 8,952,864 39,544,959 13,450,994 1,055,061 180,082 88,196,585
CHANGE IN NET POSITION 11,799,913 9,091,343 22,279,069 18,683,505 1,331,452 6,768,110 69,953,392
NET POSITION
Restricted for pension and other
postemployment benefits
Beginning ofyear 164,586,317 47,504,025 305,694,169 59,469,018 7,704,035 45,008,901 629,966,465
End ofyear $ 176,386,230 $ 56,595,368 $ 327,973,238 $ 78,152,523 $ 9,035,487 $ 51,777,011 $ 699,919,857
177
CITY OF LANSING
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30,2025
54-A District Current Tax
Court Collection Total
ASSETS
Equity in pooled cash and investments $ 184,739 $ - $ 184,739
LIABILITIES
Due to individuals and agencies 184,739 - 184,739
NET POSITION
Restricted for individuals and agencies $ - $ - $ -
178
CITY OF LANSING
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30,2025
54-A District Current Tax
Court Collections Total
ADDITIONS TO NET POSITION
Collections from or on behalf of individuals $ 1,076,594 $ - $ 1,076,594
Collections of taxes for other governments - 161,871,591 161,871,591
TOTAL ADDITIONS 1,076,594 161,871,591 162,948,185
DEDUCTIONS FROM NET POSITION
Payments to or on behalf of individuals 1,076,594 - 1,076,594
Payment of taxes collected for other governments - 161,871,591 161,871,591
TOTAL DEDUCTIONS 1,076,594 161,871,591 162,948,185
NET CHANGE IN NET POSITION - - -
Net position,beginning of year - -
Net position,end of year $ $ - $ -
179
STATISTICAL SECTION
180
STATISTICAL SECTION
This part of the City of Lansing,Michigan's (the"City")annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial statements,note disclosures,
and required supplementary information says about the City's overall financial health.
Pa,e
Financial Trends These schedules contain trend information to help the reader
(Tables 1-4) understand how the City's financial performance and well-being
have changed over time. 182
Revenue Capacity These schedules contain information to help the reader assess
(Tables 5-8) factors affecting the City's ability to generate its property taxes. 187
Debt Capacity These schedules present information to help the reader assess
(Tables 9-13) the affordability of the City's current levels of outstanding debt
and the City's ability to issue additional debt in the future. 191
Demographic and These schedules offer demographic and economic indicators to
Economic Information help the reader understand the environment within which the
(Tables 14-15) City's financial activities take place and to help make
comparisons over time and with other governments. 196
Operating Information These schedules contain information about the City's operations
(Tables 16-18) and resources to help the reader understand how the City's
financial information relates to the services the City provides
and the activities it performs. 198
Sources: Unless otherwise noted,the information in these schedules is derived from the annual comprehensive
financial reports for the relevant year.
181
CITY OF LANSING Table 1
NET POSITION BY COMPONENT
2016-2025
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets $ 149,676,860 $ 149,533,948 $ 148,263,240 $ 146,1S3,309 $ 143,583,186 $ 153,733,211 $ 159,442,216 $ 152,933,894 $ 176,420,751 $ 205,735,308
Restricted 12,922,525 10,993,950 15,189,723 23,505,738 20,495,617 24,518,910 28,101,348 42,209,665 58,248,755 93,840,171
Unrestricted (265,678,371) (276,790,945) (606,529,37S) (629,587,773) (674,087,826) (603,922,567) (578,995,034) (531,190,813) (471,192,524) (489,790,244)
Total governmental activities net position $ (103,078,986) $ (116,263,047) $ (443,076,412) $ (459,928,726] $ (510,009,023) $ (425,670,446) $ (391,451,470) $ (336,047,254) $ (236,523,018] $ (190,214,765)
Business-type activities
Net investment in capital assets $ 220,436,882 $ 224,161,744 $ 227,127,434 $ 233,988,263 $ 234,126,397 $ 219,824,056 $ 232,446,124 $ 227,979,176 $ 235,698,400 $ 240,137,502
Restricted 2,764,963 1,818,671 1,886,620 1,953,175 2,432,963 2,437,390 2,441,780 2,486,846 2,555,433 2,614,049
Unrestricted 19,401,320 25,415,447 (13,854,833) (7,299,147) (13,397,777) 19,032,067 21,195,582 39,837,334 49,776,732 61,126,185
Total business-type activities net position $ 242,603,165 $ 251,395,862 $ 215,159,221 $ 228,642,291 $ 223,161,583 $ 241,293,S13 $ 256,083,486 $ 270,303,356 $ 288,030,565 $ 303,877,736
Primary government
Net investment in capital assets $ 370,113,742 $ 373,695,692 $ 375,390,674 $ 380,141,572 $ 377,709,583 $ 373,557,267 $ 391,888,340 $ 380,913,070 $ 412,119,151 $ 445,872,810
Restricted 15,687,488 12,812,621 17,076,343 25,458,913 22,928,580 26,956,300 30,543,128 44,696,511 60,804,188 96,454,220
Unrestricted (246,277,051) (251,375,498) (620,384,208) (636,886,920) (687,485,603) (584,890,500) (557,799,452) (491,353,479) (421,415,792) (428,664,059)
Total primary government net position $ 139,524,179 $ 135,132,815 $ (227,917,191) $ (231,286,435) $ (286,847,440) $ (184,376,933) $ (135,367,984) $ (65,743,898) $ 51,507,547 $ 113,662,971
Note: No discretely presented component units shown
- GASB Statement No.68 was implemented for the fiscal year ended June 30,2015. This resulted in presentation of the City's net pension liability on
the statement of net position. Prior years were not restated.
- GASB Statement No. 75 was implemented for the fiscal year ended June 30,2018. This resulted in presentation of the City's net OPEB liability on
the statement of net position. Prior years were not restated.
182
CITY OF LANSING Table 2
CHANGES IN NET POSITION
2016-2025
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities
General government $ 27,993,414 $ 21,778,154 $ 16,995,976 $ 26,679,840 $30,400,643 $ 11,196,979 $ 19,628,516 $ 20,719,165 $ 21,814,8S9 $ 40,902,819
Judicial - - - - - - - 4,437,374 7,054,673 7,770,640
Health and welfare - - - - - - - 6,658,603 1,938,213 2,439,927
Public safety 85,739,408 91,829,441 87,352,251 97,391,612 121,102,641 57,170,988 78,113,026 88,377,091 57,755,851 98,437,224
Public works 28,212,049 28,983,891 26,485,877 29,644,398 35,288,2S4 32,334,504 27,316,002 16,436,242 34,560,876 36,107,434
Recreation and culture 10,336,168 9,441,519 6,302,243 7,650,889 11,238,934 4,125,852 6,707,099 13,784,687 10,664,726 9,921,532
Community and economic development 10,642,102 12,349,663 16,150,417 21,046,090 20,731,730 34,764,843 75,618,986 18,257,010 15,909,940 26,405,304
Interest on long-term debt 1,424,215 1,201,846 1,137,561 1,182,488 733,925 1,072,610 1,845,964 2,993,891 9,387,497 9,429,656
Total governmental activities expenses 164,347,356 165,584,514 156,424,325 183,595,317 219,496,127 140,665,776 209,229,593 171,664,063 159,086,635 231,414,536
Business-type activities
Sewage disposal system 28,487,957 27,567,228 28,552,143 31,939,976 32,605,664 20,828,495 22,239,978 30,964,460 27,098,938 31,760,216
Municipal parking system 7,651,077 6,866,747 9,888,246 7,081,998 12,716,606 3,183,095 10,110,065 6,717,635 8,016,197 7,528,763
Cemetery 708,545 886,579 1,379,877 470,220 1,652,255 300,009 98,394 703,931 265,303 1,373,345
Golf 845,575 802,564 (372,775) 278,501 229,467 198,889 164,878 165,530 165,498 141,903
Garbage and rubbish collection 2,085,728 1,543,380 3,101,893 1,035,262 2,431,066 1,753,713 1,509,140 2,425,495 4,170,087 3,320,575
Recycling 4,092,278 3,667,899 3,859,496 3,856,764 5,576,963 2,613,739 1,656,519 4,005,120 2,636,909 3,148,267
Total business-type activities expenses 43,871,160 41,334,397 46,408,880 44,662,721 55,212,021 28,877,940 35,778,974 44,982,171 42,352,932 47,273,069
Total primary government expenses $ 208,218,516 $ 206,918,911 $ 202,833,205 $ 228,258,038 $ 274,708,148 $ 169,543,716 $ 245,008,567 $ 216,646,234 $ 201,439,567 $ 278,687,605
Program Revenues
Governmental activities
Charges for services
General government $ 7,279,427 $ 7,295,556 $ 7,038,702 $ 7,567,720 $7,616,6S8 $ 10,158,500 $ 9,406,822 $ 13,093,046 $ 23,247,1S5 $ 25,637,343
Public safety 2,909,054 3,476,966 4,140,682 3,935,250 4,770,026 3,553,105 4,423,872 237,161 188,724 2,468,492
Public works 3,011,894 1,836,466 716,322 2,978,549 536,961 560,343 1,165,080 732,020 680,959 1,792,020
Recreation and culture 673,840 617,604 831,816 1,092,232 1,038,740 1,188,287 1,192,891 - - -
Community and economic development 67,272 67,312 - - - - - 2,931,128 - -
Operating grants and contributions 24,561,960 25,157,629 28,983,936 29,663,253 28,534,469 61,065,241 90,177,926 70,476,683 59,174,797 60,541,900
Capital grants and contributions 904,298 63,488 855,760 3,313,872 285,075 15,693,491 5,283,332 1,490,181 7,674,594 20,324,049
Total governmental activities program revenues 39,407,745 38,515,021 42,567,218 48,550,876 42,781,929 92,218,967 111,649,923 88,960,219 90,966,229 110,763,804
Business-type activities
Charges for services
Sewage disposal system 32,368,491 34,755,896 35,107,570 35,752,812 34,968,585 38,471,972 35,943,034 38,710,464 39,752,999 43,171,746
Municipal parking system 7,090,335 6,906,091 7,436,552 8,422,161 6,211,685 2,710,377 5,101,852 5,018,385 5,731,892 5,737,880
Cemetery 312,929 403,663 351,204 415,757 403,030 558,744 526,299 487,209 386,335 512,978
Golf 313,164 256,218 179,464 - 3,091 - - - - -
Garbage and rubbish collection 1,871,665 1,952,897 2,072,454 2,243,627 2,278,024 2,796,524 3,246,590 3,333,884 4,201,763 3,894,988
Recycling 3,627,070 3,614,794 3,779,468 4,081,700 4,376,310 4,504,054 4,455,510 4,553,007 4,774,154 4,896,765
Operating grants and contributions 1,312,362 1,391,326 1,603,942 6,648,917 2,000,000 - - - - -
Capital grants and contributions 100,000 5,000,000
Total business-type activities program revenues 46,896,016 49,380,885 50,530,654 57,564,974 50,240,725 49,041,671 49,273,285 57,102,949 54,847,143 58,214,357
Total primary government program revenues $ 86,303,761 $ 87,895,906 $ 93,097,872 $ 106,115,850 $93,022,654 $ 141,260,638 $ 160,923,208 $ 146,063,168 $ 145,813,372 $ 168,978,161
Net(Expense)Revenue
Governmental activities $ (124,939,611) $ (127,069,493) $ (113,857,107) $ (135,044,441) $ (176,714,198) $ (48,446,809) $ (97,579,670) $ (82,703,844) $ (68,120,406) $ (120,650,732)
Business-type activities 3,024,856 8,046,488 4,121,774 12,902,253 (4,971,296) 20,163,731 13,494,311 12,120,778 12,494,211 10,941,288
Total primary government net expense $ (121,914,75S) $ (119,023,005) $ (109,73S,333) $ (122,142,188) $ (181,685,494) $ (28,283,078) $ (84,085,359) $ (70,583,066) $ (55,626,195) $ (109,709,444)
183
CITY OF LANSING Table 2
CHANGES IN NET POSITION (concluded)
2016-2025
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Revenues and Other Changes in Net Position
Governmental activities
General revenues
Property taxes $ 38,578,548 $ 40,568,278 $ 39,573,468 $ 41,692,930 $41,675,711 $ 45,690,419 $ 47,620,607 $ 47,447,205 $ 65,740,941 $ 61,843,047
Income taxes 34,573,130 35,694,010 38,455,296 37,021,436 37,438,724 37,005,040 37,087,593 40,957,011 42,027,787 45,379,062
Unrestricted grants contributions 36,532,275 38,108,544 39,419,658 39,530,073 42,029,100 46,503,607 47,820,068 47,216,650 47,725,948 49,625,403
Unrestricted investment earnings 99,058 125,539 216,239 463,685 707,383 187,320 (94,154) 3,211,843 10,901,323 9,885,180
Miscellaneous 63,079 135,270 - 64,820 91,088 177,521 (38,468) 18,602 1,472,393 1,250,019
Transfers-internal activities (629,715) (746,209) (912,186) (580,817) 4,691,895 3,221,479 (597,000) (743,251) (223,750) (1,023,726)
Total governmental activities 109,216,375 113,885,432 116,752,475 118,192,127 126,633,901 132,785,386 131,798,646 138,108,060 167,644,642 166,958,985
Business-type activities
Unrestricted investment earnings - - - - 2,061,667 1,189,678 698,662 1,216,752 4,980,460 3,853,815
Miscellaneous 3,853 - - - - - - 15,498 28,788 28,342
Transfers-internal activities 629,715 746,209 912,186 580,817 (4,691,895) (3,221,479) 597,000 743,251 223,750 1,023,726
Gain on sale of assets 2,120,816 123,591
Total business-type activities 633,568 746,209 912,186 580,817 (509,412) (2,031,801) 1,295,662 2,099,092 S,232,998 4,905,883
Total primary government $ 109,849,943 $ 114,631,641 $ 117,664,661 $ 118,772,944 $ 126,124,489 $ 130,753,585 $ 133,094,308 $ 140,207,152 $ 172,877,640 $ 171,864,868
Change in Net Position
Governmental activities $ (15,723,236) $ (13,184,061) $ 2,895,368 $ (16,852,314) $ (50,080,297) $ 84,338,577 $ 34,218,976 $ 55,404,216 $ 99,524,236 $ 46,308,253
Business-type activities 3,658,424 8,792,697 5,033,960 13,483,070 (5,480,708) 18,131,930 14,789,973 14,219,870 17,727,209 15,847,171
Total primary government $ (12,064,812) $ (4,391,364) $ 7,929,328 $ (3,369,244) $ (SS,561,005) $ 102,470,S07 $ 49,008,949 $ 69,624,086 $ 117,251,445 $ 62,155,424
184
CITY OF LANSING Table 3
FUND BALANCE
GOVERNMENTAL FUNDS
2016-2025
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Nonspendable $ 492,549 $ 28,342 $ 39,437 $ 38,605 $ 185,369 $ 570,654 $ 759,490 $ 951,644 $ 1,035,441 $ 1,174,318
Restricted - - - - - - - 7,792,610 7,792,610 7,792,610
Committed 428,106 385,067 283,815 7,972,836 785,099 - 282,524 -
Assigned - - - - - - 175,000 67,000
Unassigned 12,407,748 15,283,857 17,003,260 9,992,885 9,935,641 21,229,263 21,907,213 20,917,243 31,366,271 20,956,351
Total general fund 13,328,403 15,697,266 17,326,512 10,031,490 10,121,010 29,772,753 23,451,802 29,661,497 40,651,846 29,990,279
All other governmental funds
Nonspendable 2,578,331 2,618,884 2,842,489 2,952,027 3,169,987 3,283,816 3,153,577 3,130,406 3,515,175 4,103,579
Restricted 6,934,665 4,730,012 9,009,438 17,038,777 18,550,655 21,235,094 35,877,471 208,470,546 241,078,850 230,106,850
Committed 8,427,253 10,426,961 8,837,341 9,147,988 10,637,417 2,546,040 5,192,514 8,268,306 10,417,040 7,258,015
Unassigned(deficit) (410,252) (411,098) (155,261) (115,546) (82,237)
Total all other governmental funds 17,529,997 17,364,759 20,534,007 29,023,246 32,275,822 27,064,950 44,223,562 219,869,258 255,011,065 241,468,444
Total all governmental funds $ 30,858,400 $ 33,062,025 $ 37,860,519 $ 39,054,736 $ 42,396,832 $ 56,837,703 $ 67,675,364 $ 249,530,755 $ 295,662,911 $ 271,458,723
Note: GASB Statement No.54,Fund Balance Reporting and Governmental Fund Type Definitions,was implemented in 2011. Further information on the
fund balances are found in the footnotes to the financial statements.
185
CITY OF LANSING Table 4
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
2016-2025
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Property taxes and special assessments $ 38,782,759 $ 40,691,325 $ 39,629,305 $ 41,732,645 $ 41,709,020 $ 45,712,919 $ 48,010,607 $ 47,447,205 $ 69,193,966 $ 67,373,787
Income taxes 34,573,130 35,694,010 38,455,296 37,021,436 37,438,724 37,005,040 37,087,593 40,957,011 42,184,295 45,547,274
Licenses and permits 1,559,638 1,494,298 2,113,824 1,399,881 2,427,866 1,930,169 1,932,281 2,000,219 1,871,789 1,534,016
Intergovernmental revenue 34,175,112 36,391,761 41,848,072 45,586,152 44,166,490 77,368,957 113,084,026 85,389,115 87,611,412 102,403,663
Charges for services 14,102,447 13,230,822 12,432,770 15,235,656 13,048,934 15,525,892 15,574,570 15,887,520 16,634,650 16,932,579
Fines and forfeits 3,455,541 2,510,945 2,601,063 2,306,990 1,589,733 1,491,641 1,576,283 1,654,848 1,773,554 1,538,127
Interest and rents 145,011 201,367 284,165 631,812 911,454 402,443 119,690 3,428,063 11,553,772 10,941,322
Other 22,854,314 22,952,587 22,101,917 22,391,478 23,371,306 26,397,782 25,760,762 29,361,388 27,306,679 29,245,693
Total revenues 149,647,952 153,167,115 159,466,412 166,306,050 164,663,527 205,834,843 243,145,812 226,125,369 258,130,117 275,516,461
Expenditures
Current Expenditures
General government 23,386,445 23,948,368 22,281,236 27,340,931 23,111,276 19,864,962 25,473,276 22,250,278 24,966,681 41,500,655
Public safety 72,264,468 73,683,246 75,859,065 78,659,682 80,863,159 76,213,091 90,331,314 95,649,361 104,173,303 105,439,144
Publicworks 11,715,510 11,201,515 11,087,884 11,632,895 12,368,707 11,010,619 12,955,334 16,350,906 18,707,105 20,018,018
Judicial - - - - - - - 8,516,032 8,644,768 9,585,357
Health and welfare - - - - - - - 893,963 2,193,446 2,745,417
Highway and streets 10,838,473 10,969,516 10,104,034 11,984,896 10,711,027 10,857,448 11,450,485 13,687,366 11,649,145 11,063,994
Recreation and culture 7,719,906 7,749,245 8,236,872 8,138,369 7,420,052 6,497,239 9,134,233 13,980,828 9,032,477 10,035,960
Community and economic development 3,442,110 4,142,612 15,947,504 19,435,277 18,699,058 43,174,711 76,784,433 28,379,853 19,198,586 29,065,346
Other 2,927,391 2,710,979 - - - - - - - -
Debt service
Principal 3,892,862 4,596,159 3,622,053 3,183,595 3,286,705 3,359,672 4,518,916 6,280,885 5,908,306 5,598,115
Interest and fiscal charges 1,275,957 1,120,518 949,318 1,000,307 823,907 798,387 2,003,677 3,941,234 10,011,958 10,486,823
Capital outlay 7,221,346 9,328,278 5,146,742 4,798,070 7,891,788 21,325,057 18,396,917 22,230,357 18,083,630 53,831,618
Total expenditures 144,684,468 149,450,436 153,234,708 166,174,022 165,175,679 193,101,186 251,048,585 232,161,063 232,569,405 299,370,447
Excess(deficiency)of revenues over expenditures 4,963,484 3,716,679 6,231,704 132,028 (512,152) 12,733,657 (7,902,773) (6,035,694) 25,560,712 (23,853,986)
Other financing sources(uses)
Transfers in 9,207,856 9,887,627 7,721,661 8,749,296 16,980,511 8,542,188 10,210,859 9,927,805 21,593,195 11,070,863
Transfers out (10,055,346) (11,497,936) (9,283,847) (9,330,113) (13,218,616) (7,325,709) (10,807,859) (10,449,805) (21,593,195) (11,806,863)
Issuance of debt 2,090,000 - - 8,603,699 - - 27,559,000 177,400,000 20,000,000 -
Proceeds from the sale of capital assets 268 97,255 128,976 - 92,353 490,735 400,000 23,532 - -
Lease related - - - - - - - 385,798
Payments to advance refunding escrow agent (2,162,163) - - (7,741,363) - - (8,621,566) - - -
Bond premium 80,175 780,670 10,989,553 571,444
Total other financing sources(uses) (839,210) (1,513,054) (1,433,210) 1,062,189 3,854,248 1,707,214 18,740,434 187,891,085 20,571,444 (350,202)
Net change in fund balances $ 4,124,274 $ 2,203,625 $ 4,798,494 $ 1,194,217 $ 3,342,096 $ 14,440,871 $ 10,837,661 $ 181,855,391 $ 46,132,156 $ (24,204,188)
Debt service as a percentage of noncapital expenditures 3.6% 3.8% 3.0% 2.5% 2.5% 2.7% 2.8% 5.2% 5.2% 6.6%
186
CITY OF LANSING Table 5
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Taxable Assessed Value Ratio of Total
Industrial and Assessed
Commercial Total Taxable to Total
Subject to Assessed Total Direct Estimated Estimated
Year Real Personal Act 198 Agricultural Developmental Value Tax Rate Actual Value Actual Value
2016 $ 1,162,708,909 $ 196,143,891 $ 806,360,800 $ 175,600 $ 2,900 $ 2,165,392,100 19.70 $ 4,330,784,200 50.0%
2017 1,285,584,500 144,076,700 837,758,400 172,500 - 2,267,592,100 19.70 4,535,184,200 50.0%
2018 1,325,754,900 131,924,900 892,135,800 180,000 2,349,995,600 19.70 4,699,991,200 50.0%
2019 1,422,412,200 143,567,100 1,000,797,500 185,300 2,566,962,100 19.70 5,133,924,200 50.0%
2020 1,537,030,826 157,132,900 1,143,059,850 211,800 - 2,837,435,376 19.70 5,674,870,752 50.0%
2021 1,638,136,900 171,927,400 1,247,559,700 192,100 1 3,057,816,101 19.70 6,115,632,202 50.0%
2022 1,766,415,343 172,959,000 1,285,295,000 206,900 - 3,224,876,243 19.70 6,449,752,486 50.0%
2023 1,965,466,450 201,680,300 1,387,333,702 216,700 3,554,697,152 19.70 7,109,394,304 50.0%
2024 2,818,948,085 232,512,700 1,286,067,531 195,227 4,337,723,543 23.20 8,675,447,086 50.0%
2025 2,483,090,196 227,145,900 1,646,425,421 261,000 4,356,922,517 23.20 8,713,845,034 50.0%
Source: Lansing City Assessor
187
CITY OF LANSING Table 6
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
(RATE PER$1,000 OF ASSESSED VALUE)
City of Lansing Overlapping Rates Totals
Public Total State
Year Ended Operating Safety Service City Schools County Education College Other(2)
June 30, Tax Year Millage Millage Millage Millage Millage(1) Millage Tax Millage Millage Total
2016 2015 19.44 .26 19.70 21.83 9.83 6.00 3.81 9.96 71.13
2017 2016 19.44 .26 19.70 22.57 10.06 6.00 3.81 9.96 72.10
2018 2017 19.44 .26 19.70 22.60 10.07 6.00 3.81 11.25 73.43
2019 2018 19.44 .26 19.70 22.50 11.34 6.00 3.81 11.26 74.61
2020 2019 19.44 .26 19.70 25.38 11.34 6.00 3.81 9.97 76.20
2021 2020 19.44 .26 19.70 25.10 11.91 6.00 3.77 10.20 76.68
2022 2021 19.44 .26 19.70 24.51 11.98 6.00 3.77 10.18 76.14
2023 2022 19.44 - .26 19.70 24.51 11.31 6.00 3.77 10.19 75.48
2024 2023 19.44 3.50 .26 23.20 25.41 11.31 6.00 3.77 10.19 79.88
2025 2024 19.44 3.50 .26 23.20 24.51 12.39 6.00 3.77 10.19 80.06
(1)rates for Lansing School District only,using non-principal residency rates
(2)includes Intermediate School,Airport Authority,Capital Area Transit Authority and Capital Area District Library
Source:Lansing City Treasurer
188
CITY OF LANSING Table 7
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
2025 2016
Taxable Taxable
Assessed Percent Assessed Percent
Taxpayer Valuation Rank of Total Valuation Rank of Total
Consumers Energy $ 107,287,966 1 3.27% $ 29,103,467 2 1.34%
Ultium Cell LLC 87,500,866 2 2.67%
General Motors LLC 49,069,602 3 1.50% 59,302,202 1 2.74%
Jackson National Life 42,865,778 4 1.31% 27,829,926 3 1.29%
Accident Fund 29,008,800 5 0.88%
GS Skyvue Property Owner LLC 26,950,500 6 0.82%
Neogen Corporation 24,007,246 7 0.73%
USSH MSU Propco. LLC 23,163,423 8 0.71%
General Motors Co. 19,921,817 9 0.61%
Lansing Retail Center LLC 15,066,629 10 0.46% 11,863,110 8 0.55%
Demmer Corporation 12,287,800 7 0.57%
Sprint Spectrum L.P. 19,326,303 4 0.89%
Emergency Biodefense Operations 13,360,674 6 0.62%
Eyde Knapp Development LLC 7,940,150 10 0.37%
Phoenix Development Part I LLC 17,022,933 5 0.79%
Phoenix Development Part II LLC 8,133,041 9 0.38%
$ 424,842,627 12.95% $ 206,169,606 9.54%
Source: Lansing City Assessor
189
CITY OF LANSING Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Collection Percent (B)
(A) of Current of Levy Collection Percent
Total Year's Taxes Collected Subsequent of Total
Tax Fiscal Adjusted During During to the Year of Total Collections
Year Year Tax Levy Year Levied Year Levied Tax Levy Collections to Tax Levy
2015 2016 $ 38,538,226 $ 38,461,152 99.80% $ 52,758 $ 38,513,910 99.94%
2016 2017 38,431,072 38,370,929 99.84% 50,344 38,421,273 99.97%
2017 2018 39,234,692 39,165,577 99.82% 67,348 39,232,925 100.00%
2018 2019 40,231,255 40,160,674 99.82% 42,639 40,203,313 99.93%
2019 2020 42,128,760 42,106,756 99.95% 17,175 42,123,931 99.99%
2020 2021 43,098,838 42,919,114 99.58% 132,556 43,051,670 99.89%
2021 2022 47,200,360 47,111,175 99.81% 85,532 47,196,707 99.99%
2022 2023 49,459,123 49,441,589 99.96% 15,067 49,456,656 100.00%
2023 2024 53,754,724 53,673,520 99.85% 77,468 53,750,988 99.99%
2024 2025 57,912,663 57,889,469 99.96% 23,194 57,912,663 100.00%
Note:Amounts are net of chargebacks from the County Tax Revolving Funds for taxes still delinquent after three years.
Note: Delinquent Tax Collection represents amounts received in the indicated fiscal year.
Source: City of Lansing Treasurer
190
CITY OF LANSING Table 9
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
Governmental Activities Business-Type Activities
Net Installment Net
General Installment Unamortized General Purchase Unamortized Percentage
Obligation Purchase Premiums/ Other Obligation Revenue Agreements/ Premiums/ Total Primary of Personal Per
Year Bonds Contracts Discounts Loans SBITA Leases Bonds Bonds Loans Discounts Government Income Capita Population(1)
2016 $ 21,968,330 $ 15,268,317 $ 68,330 $ 7,872,600 $ - $ - $ 154,303,563 $ 20,671,135 $ 1,246,673 $ 1,715,511 $ 223,114,459 9.42% 2 1,955 114,110
2017 18,080,040 13,757,531 15,040 7,728,428 - - 143,761,916 18,982,246 1,029,723 1,552,355 204,907,279 8.04% 2 1,745 117,400
2018 15,325,818 12,289,396 19,222 7,476,545 - - 136,938,668 17,258,138 808,500 1,389,200 191,505,487 7.18% 2 1,637 116,986
2019 14,925,420 11,274,020 761,721 7,242,002 - - 117,713,909 14,075,000 582,920 2,097,766 168,672,758 6.41% 2 1,437 117,388
2020 11,792,231 10,230,073 748,067 7,000,422 - - 112,290,745 12,525,000 352,897 1,890,331 156,829,766 5.96% 2 1,327 118,210
2021 27,958,180 9,156,735 663,565 7,660,461 - - 115,160,822 10,975,000 118,343 2,142,487 173,835,593 6.85% 2 1,543 112,664
2022 29,629,300 22,457,000 586,222 6,160,061 726,265 - 103,495,891 9,425,000 - 1,998,159 174,477,898 6.85% 2 1,548 114,297
2023 214,543,986 21,048,000 11,526,235 6,092,706 4,524,170 - 115,004,650 7,875,000 - 1,892,933 382,507,680 14.30% 2 3,361 112,460
2024 230,753,750 19,612,000 11,479,613 5,279,173 3,448,537 - 108,093,995 6,300,000 - 1,782,501 386,749,569 14.47% 2 3,433 112,644
2025 227,149,000 18,147,000 10,861,547 4,666,513 2,352,983 336,782 111,524,480 4,725,000 - 1,613,941 381,377,246 14.27% 2 3,386 114,336
(1)population per decennial census by the U.S.Census Bureau
(2)personal income data comes from U.S.Census Bureau,American Community Survey 2009
191
CITY OF LANSING Table 10
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio of
Fiscal Debt Debt Net Bonded Net
Year Taxable Service Payable From Debt to Bonded
Ended Assessed Gross Bonded Monies Restricted Net Bonded Taxable Debt per
June 30, Population(1) Value(3) Debt(2) Available Revenues Debt Value Capita
2016 114,110 $ 2,165,392,100 $ 178,055,734 $ 1,000 $ 156,019,074 $ 22,035,660 0.0102 $ 179
2017 117,400 2,267,592,100 163,409,357 1,000 145,314,271 18,094,086 0.0080 150
2018 116,986 2,349,995,600 153,772,908 1,000 138,327,868 15,444,040 0.0066 131
2019 117,388 2,566,962,100 135,498,816 30,111 119,811,675 15,657,030 0.0061 127
2020 118,210 2,837,435,376 126,721,374 29,361 114,181,076 12,510,937 0.0044 100
2021 112,664 3,057,816,101 145,925,054 29,361 117,303,309 28,592,384 0.0094 254
2022 114,297 3,224,876,243 135,709,572 29,361 105,494,050 30,186,161 0.0094 264
2023 112,460 3,060,880,895 342,967,804 29,361 116,897,583 226,040,860 0.0738 2,010
2024 112,644 3,295,900,629 352,109,859 29,361 109,876,496 242,204,002 0.0735 2,150
2025 114,336 3,281,185,484 351,148,968 29,361 113,138,421 237,981,186 0.0725 2,081
(1)Source:2000 and 2020 Census by the U.S.Census Bureau(www.census.gov/quickfacts/lansingcitymichigan)
(2) includes all general obligation debt and special assessment debt with governmental obligation
(3) the tax assessment day is December 31 prior to beginning of fiscal year
192
CITY OF LANSING Table 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30,2025
(UNAUDITED)
Overlapping
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Direct-City $ 249,962,513 100.00% $ 249,962,513
Share of County-issued bonds
Drain Commission 30,279,129 100.00% 30,279,129
Other Overlapping Debt
Eaton Intermediate School District 2,475,000 1.48% 36,630
Ingham Intermediate School District 9,207,000 25.71% 2,367,120
Waverly School District 106,565,000 0.29% 309,039
Lansing School District 200,385,000 83.72% 167,762,322
East Lansing School District 101,898,377 5.92% 6,032,384
Holt School District 108,618,286 2.32% 2,519,944
Ingham County 110,935,001 29.59% 32,825,667
Eaton County 37,215,529 2.39% 889,451
Clinton County 21,317,877 0.32% 68,217
Lansing Community College 59,500,000 21.12% 12,566,400
Okemos School District 82,491,460 5.35% 4,413,293
Mason School District 56,710,000 1.21% 686,191
Grand Ledge School District 138,770,000 2.84% 3,941,068
Total Overlapping $ 264,696,855
Total Direct and Overlapping $ 514,659,368
Sources: Municipal Advisory Council
Note: Overlapping debt percentages are apportioned based upon relative assessed values.
193
CITY OF LANSING Table 12
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(UNAUDITED)
Legal Debt Margin Calculation for Fiscal Year 2025
Assessed value,real and personal property $ 3,281,185,484
Legal debt margin
Debt limitation-10 percent of total valuation 328,118,548
Debt applicable to limit
Total City Bonded Debt 351,148,968
City Share:
Drain Commission-County Issued 30,279,129
TIF Supported Bonds 27,250,000
408,678,097
Less:
Brownfield Redevelopment Authority Bonds $ (37,470,000)
Sewage Disposal Revenue Bonds (4,725,000)
Pollution Abatement(CSO Project)Bonds (90,309,480)
Share of County-issued bonds (30,279,129) (162,783,609)
Total net debt applicable to limit 245,894,488
Legal debt margin $ 82,224,060
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Debt limit $ 328,118,548 $ 329,590,063 $ 306,088,090 $ 322,487,624 $ 283,743,538 $ 256,696,210 $ 207,850,642 $ 233,606,400 $ 223,687,492 $ 216,539,210
Total net debt applicable to limit 245,894,488 248,305,215 229,128,807 48,804,421 81,956,344 81,532,491 72,669,623 87,295,949 81,398,300 86,432,459
Legal debt margin $ 82,224,060 $ 81,284,848 $ 76,959,283 $ 273,683,203 $ 201,787,194 $ 175,163,719 $ 135,181,019 $ 146,310,451 $ 142,289,192 $ 130,106,751
Total net debt applicable to the limit
as a percentage of debt limit 74.94% 75.34% 74.86% 15.13% 28.88% 31.76% 34.96% 37.37% 36.39% 39.92%
194
CITY OF LANSING Table 13
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Sewage Disposal Bonds
Direct Net Revenue
Gross Operating Available for Debt Service Requirements
Revenue Expenses(l) Debt Service Principal Interest Total Coverage (2)
2016 $ 32,676,182 $ 14,066,527 $ 18,609,655 $ 1,550,000 $ 861,188 $ 2,411,188 7.72
2017 35,053,701 13,843,649 21,210,052 1,550,000 799,188 2,349,188 9.03
2018 35,608,454 14,994,871 20,613,583 1,550,000 737,188 2,287,188 9.01
2019 36,696,367 18,587,607 18,108,760 1,550,000 690,688 2,240,688 8.08
2020 34,968,585 19,568,461 15,400,124 1,550,000 613,188 2,163,188 7.12
2021 38,635,421 28,902,815 9,732,606 1,550,000 535,688 2,085,688 4.67
2022 36,142,653 10,866,625 25,276,028 1,550,000 458,188 2,008,188 12.59
2023 38,710,464 17,775,903 20,934,561 1,550,000 380,688 1,930,688 10.84
2024 39,752,999 13,767,150 25,985,849 1,575,000 303,188 1,878,188 13.84
2025 43,171,746 16,156,383 27,015,363 1,575,000 224,438 1,799,438 15.01
(1) Operating expenses less depreciation
(2) Coverage is defined as net revenue available for debt service divided by debt service requirements
195
CITY OF LANSING Table 14
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Lansing
Personal Per Capita Median School District Unemployment Labor
Year Population (1) Income Income (1) Age 1 Enrollment(2) Rate (3) Force (3)
2016 114,110 $ 2,368,467,160 $ 20,756 32.10 11,014 6.0% 58,009
2017 117,400 2,548,754,000 21,710 32.00 10,873 6.5% 59,321
2018 116,986 2,666,695,870 22,795 32.30 10,641 5.8% 59,537
2019 117,388 2,629,725,976 22,402 32.70 10,462 5.0% 59,251
2020 118,210 2,536,936,212 22,196 31.90 10,661 16.0% 63,541
2021 112,664 2,616,734,064 23,226 35.50 10,031 5.5% 59,058
2022 112,684 2,674,442,056 23,734 34.50 10,173 4.7% 57,447
2023 112,460 2,669,125,640 23,734 32.80 10,173 6.4% 57,447
2024 112,644 2,673,492,696 23,734 32.80 10,525 4.0% 57,447
2025 114,336 2,730,686,688 23,883 33.50 10,773 7.4% 62,026
(1) Source: U.S.Census Bureau
(2) Source: Lansing School District
(3) Source: Michigan Bureau of Labor Market Information and Strategic Initiatives
196
CITY OF LANSING Table 15
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS PRIOR
(UNAUDITED)
2025 2016
Percentage of Percentage of
Company Employees(1) Rank Employment(2) Employees(1) Rank Employment(2)
STATE OF MICHIGAN 13,880 1 6.57% 13,700 1 5.97%
MICHIGAN STATE UNIVERSITY 10,253 2 4.85% 10,725 2 4.67%
UNIVERSITY OF MICHIGAN SPARROW HEALTH SYSTEM 9,000 3 4.26% 5,735 3 2.50%
GENERAL MOTORS 4,549 4 2.15% 5,222 4 2.28%
MCLAREN HEALTH(3) 3,000 5 1.42% 2,400 6 1.05%
AUTO OWNERS 2,720 6 1.29% 1,400 9 0.61%
PECKHAM 2,510 7 1.19%
JACKSON NATIONAL LIFE INS CO 2,439 8 1.15% 1,400 10 0.61%
DART CONTAINER CORP 2,000 9 0.95%
LANSING COMMUNITY COLLEGE 1,957 10 0.93% 2,990 4 1.30%
MEIJER 1,500 8 0.65%
LANSING SCHOOL DISTRICT 1,613 7 0.70%
Greater Lansing metropolitan area employment 211,208 229,466
(1)Data is representative of the Greater Lansing Region
(2)Source:www.purelansing.com/Workforce&Data>Top Employers for data
(3)Formerly Ingham Regional Medical Center
197
CITY OF LANSING Table 16
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Full-time Equivalent Employees
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
General government
City council 10 10 10 10 10 10 10 11 10 10
Mayor's office 6 6 7 (G) 7 11 12 12 9 8 9
City clerk 5 5 5 6 6 6 6 8 6 11
54-A district court 45 45 45 45 45 45 45 41 43 45
City attorney's office 11 11 11 12 11 12 13 12 13 12
City TV 2 2 2 2 3 2 2 2 2 2
Internal auditor 1 1 1 1 1 1 1 1 1 1
Human resources 12 12 11 11 11 11 11 14 15 15
Information technology 11 11 16 16 15 15 14 13 16 13
Finance
Accounting/budget/purchasing 8 (E) 8 8 8 7 8 14 14 14 15
Treasury/income tax 10 11 11 13 16 14 12 12 15 14
Assessing 11 11 11 11 11 11 11 6 11 10
Property management - - - - - - - - - -
Fleet management
132 133 138 142 147 147 151 143 154 157
Planning&neighborhood development
Administration 2 2 2 2 3 3 3 3 3 3
Code compliance - - 14 (F) 15 19 19 19 17 17 17
Building safety 13 13 13 13 15 14 14 14 14 14
Planning 4 4 3 (G) 4 4 3 3 3 3 3
Development 10 9 9 9 7 8 8 8 8 8
Parking&transportation 14 14 14 14 19 19 19 23 23 23
43 42 55 57 67 66 66 68 68 68
Neighborhood&Citizen Engagement 1 (G) 5 5 5 12 13 13 13
Police 239 240 241 243 239 240 251 237 258 260
Fire 181 181 181 182 186 183 184 170 170 195
Code Compliance 14 14 - (F) 14 14 14
195 195 181 182 186 183 184 184 184 209
Public services
Administration&engineering 20 20 20 21 22 23 23 22 22 20
Operations&maintenance 117 117 118 118 113 116 116 114 114 114
Service garage - - - - 1 1 1 1 1 1
Wastewater 41 41 42 42 42 42 42 42 42 42
Property Management 18 16 16 16 19 18 18 18 18 18
Fleet Management 26 30 30 30 29 29 29 29 29 27
222 224 226 227 226 229 229 226 226 222
Human relations&community services 7 8 9 10 11 10 10 8 11 13
Parks&recreation
Administration&design 6 6 6 6 6 6 6 6 7 7
Leisure&special recreation 6 6 6 6 10 6 6 6 7 7
Cemeteries 1 1 1 1 1 1 1 1 1 1
Golf/ice arena 3 3 3
16 16 16 13 17 13 13 13 15 15
Total 854 858 867 879 898 893 916 892 929 957
Source:The City of Lansing
The following restructuring of departments have occurred:
(E)Purchasing operations were transferred to the Lansing Board of Water and Light for FY 2016.
(F)Code Compliance was transferred from Fire to ED&P.
(G)One(1)position was transferred from Human Resources to Mayor's Office and one(1)position was transferred from ED&P to N&CE in FY 2018.
198
CITY OF LANSING Table 17
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public safety
Fire department responses 21,115 21,902 22,767 22,389 21,904 21,650 25,994 19,661 27,544 27,080
EMS related 18,275 18,827 19,264 19,655 18,975 18,381 21,511 15,543 21,847 21,254
Fire related 2,840 3,075 3,063 2,734 2,929 3,269 4,483 4,118 5,697 5,826
Police department responses 71,468 82,722 107,379 84,869 80,449 77,399 78,500 78,239 79,186 79,511
Arrests 3,880 5,710 4,507 4,418 3,524 2,446 2,601 2,871 3,005 2,998
Traffic violations 7,334 9,385 6,496 6,963 5,054 4,287 6,801 6,882 7,447 8,975
Public works
Potholes filled 53,488 53,332 54,773 2,589 1,042 698 4,997 1,254 1,116 1,861
Streets resurfaced(miles) 8.8 8.7 6.0 4.6 11.0 13.6 1.9 7.0 12.0 9.0
Recreation
Recreation participation 101,335 98,978 120,245 93,264 29,313 58,284 109,582 129,387 153,421 153,421
Pavilion rentals 242 180 202 222 78 140 142 105 111 111
Sewage disposal
Average amount processed daily(gal) 15.46 million 16.32 million 14.45 million 16.60 million 14.18 million 10.61 million 12.1 million 13.3 million 14.64 million 12.98 million
Parking system
Average number of monthly permits 3,218 2,581 3,310 2,500 869 1,203 1,200 1,200 1,300 1,300
Parking tickets issued 32,990 33,492 32,587 37,105 16,481 19,876 30,306 34,881 35,353 35,353
Cemetery
Lots sold 115 162 88 103 121 119 85 56 12 85
Golf
Annual rounds played 13,325 14508 20,492 - - - - - - -
Garbage and rubbish
Yards sent to landfill 20,115 20,007 20,492 20,957 22,825 27,865 26,885 27,344 27,987 33,417
Recycling
Recycled goods sold(tons) 5,940 5,834 5,593 5,407 5,322 6,258 6,310 5,840 5,951 5,756
Yards composted 24,413 24,223 20,031 21,198 14,262 19,888 13,864 14,340 15,421 14,757
Source: The City of Lansing,Michigan
199
CITY OF LANSING Table 18
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public safety
Police stations 2 2 2 2 2 2 2 2 2 2
Police patrol units 60 60 60 58 58 60 57 57 58 59
Fire stations 6 6 6 8 8 8 8 8 7 7
Emergency Vehicles 0 0 0 55 27 31 44 44 44 40
Public works
Streets (miles) 414.00 414.00 414.00 413.00 413.23 413.23 412.00 412.00 412.00 417.00
Traffic signals 200 200 200 184 206 206 206 206 205 206
Recreation
Park acreage 2,134.26 2,134.26 2,017.56 2,174 1,659 1,659 1,641 1,641 1,641 1,642
Playgrounds 74 74 74 76 77 76 76 76 77 73
Baseball/softball fields 25 25 25 22 22 22 22 22 22 22
Soccer/football fields 14 15 15 15 16 16 16 16 16 16
Community centers 4 4 4 4 4 4 4 4 4 4
Sewage disposal
Sanitary sewers(miles) 361 361 363 364 365 365 367 369 388 390
Storm sewers(miles) 235 235 237 238 239 239 241 243 302 294
Combined sewers(miles) 188 188 187 185 185 184 183 181 68 64
Parking system
Ramps 4 4 4 3 3 3 3 3 3 3
Lots 16 16 16 16 16 17 14 14 14 11
Meters 2,166 2,166 2,166 2166 500 200 200 200 653 653
On-street Pay Stations 134 128 128 128 156 156
Cemetery
Number of cemeteries 3 3 3 3 3 3 3 3 3 3
Golf
Number of courses 1 1 1 1 1 1 1 1 1 1
Acreage 115 115 115 115 115 115 115 115 119 119
Garbage and rubbish
Refuse collection trucks 14 14 16 8 7 7 7 9 9 9
Recycling
Recycling trucks 5 5 7 8 8 8 8 9 9 9
Compost trucks 0 0 0 8 7 7 7 5 5 5
Sources:The City of Lansing,Michigan
200