2021-2022 Proposed Budget

2021 – 2022 Budget
Table of Contents
Table of Contents
Table of Contents ............................................................................................................... 1
Elected Officials & Administration .................................................................................. 3
Strategic Plan...................................................................................................................... 4
Budget Overview ................................................................................................................ 5
Budget Reader’s Guide ........................................................................................................................... 5
Budget Transmittal Letter ....................................................................................................................... 6
Budget Highlights ................................................................................................................................... 7
Council Priorities .................................................................................................................................... 8
Budget Issues .......................................................................................................................................... 9
COVID-19 Pandemic .........................................................................................................................10
Blight..................................................................................................................................................12
Motor Pool Sustainability ..................................................................................................................13
Fire Department Ladder Truck & Pumper .........................................................................................15
Employees ............................................................................................................................................. 16
City Indebtedness .................................................................................................................................. 24
Budget Adoption .............................................................................................................. 28
Budget Appropriation ........................................................................................................................... 28
Budget Change Summary ..................................................................................................................... 32
General Fund .................................................................................................................... 33
Overview ............................................................................................................................................... 34
Revenue................................................................................................................................................. 36
Expenses ............................................................................................................................................... 40
Legislative ............................................................................................................................................. 41
Manager ................................................................................................................................................ 43
Finance .................................................................................................................................................. 45
Clerk & Elections .................................................................................................................................. 47
Assessor & Board of Review ................................................................................................................ 50
City Hall ................................................................................................................................................ 53
Planning & Zoning................................................................................................................................ 55
Police..................................................................................................................................................... 57
Fire & EMS ........................................................................................................................................... 60
Public Works ......................................................................................................................................... 63
Parks ...................................................................................................................................................... 66
General Operating ................................................................................................................................. 69
Debt Service .......................................................................................................................................... 71
Appropriations ...................................................................................................................................... 72
Component Units.............................................................................................................. 73
Downtown Development Authority...................................................................................................... 73
Ramsdell Theatre .................................................................................................................................. 80
Brownfield Redevelopment Authority.................................................................................................. 83
Enterprise Funds .............................................................................................................. 84
Water Utility ......................................................................................................................................... 85
Overview ............................................................................................................................................85
Revenue..............................................................................................................................................87
Water Operations ...............................................................................................................................88
Page | 1 FY 2022 Budget

Table of Contents
Debt Service .......................................................................................................................................90
Capital Outlay ....................................................................................................................................91
Results ................................................................................................................................................91
Sewer Utility ......................................................................................................................................... 92
Overview ............................................................................................................................................92
Revenue..............................................................................................................................................93
Sewer Operations ...............................................................................................................................94
Debt Service .......................................................................................................................................96
Capital Outlay ....................................................................................................................................97
Results ................................................................................................................................................97
Municipal Marina.................................................................................................................................. 98
Boat Launch ........................................................................................................................................ 101
Permanent Funds ........................................................................................................... 104
Oil & Gas Fund ................................................................................................................................... 104
Special Revenue Funds .................................................................................................. 108
Streets .................................................................................................................................................. 109
State of the Streets ...........................................................................................................................109
Transportation Improvement Plan ...................................................................................................110
Street Funding ..................................................................................................................................112
Major Street Fund ............................................................................................................................113
Local Street Fund .............................................................................................................................117
City Street Fund ...............................................................................................................................121
Refuse ................................................................................................................................................. 122
Building Inspection ............................................................................................................................. 124
PEG Commission ................................................................................................................................ 125
Internal Service Funds .................................................................................................. 126
Motor Pool .......................................................................................................................................... 126
Capital Project Funds .................................................................................................... 129
Capital Improvement Fund ................................................................................................................. 130
Grant Management.............................................................................................................................. 132
Renaissance Park Fund ....................................................................................................................... 134
Schedule of Fees ............................................................................................................. 135
Appendices ...................................................................................................................... 142
Organization Chart .............................................................................................................................. 142
SEV & Taxable Value ........................................................................................................................ 143
Millage Rates ...................................................................................................................................... 144
General Fund Balance ......................................................................................................................... 145
Water & Sewer Rates .......................................................................................................................... 147

Elected Officials & Administration
Elected Officials & Administration
City Council
Roger Zielinski Mayor Third District rzielinski@manisteemi.gov
Michael Szymanski Mayor Pro-Tem Fifth District mszymanski@manisteemi.gov
Dave Bachman Councilmember First District dbachman@manisteemi.gov
Lynda Beaton Councilmember Second District lbeaton@manisteemi.gov
Jermaine Sullivan Councilmember Fourth District jsullivan@manisteemi.gov
James Grabowski Councilmember Sixth District jgrabowski@manisteemi.gov
Erin Martin Pontiac Councilmember Seventh District epontiac@manisteemi.gov
Administration
Thad Taylor City Manager ttaylor@manisteemi.gov
Ed Bradford Chief Financial Officer ebradford@manisteemi.gov
Mark Cameron Fire Chief mcameron@manisteemi.gov
Josh Glass Police Chief jglass@manisteemi.gov
Jeff Mikula Public Works Director jmikula@manisteemi.gov
Heather Pefley City Clerk hpefley@manisteemi.gov

Strategic Plan
Strategic Plan
The City Council maintains the City of Manistee Strategic Plan. The strategic plan provides direction to
staff and is used as a basis for formulating each department’s tactical approach and annual operating
budget, in order to best meet the goals of the plan.
Our Vision:
Manistee is a safe and positive community to live, work, and play.
Our Mission:
To continue to encourage a rich heritage of successes in industry and business
while continuing to enhance our vibrant residential character.
Our Purpose:
To protect the health, safety, and welfare of citizens in order that all may prosper, enjoy,
and partake in a vibrant waterfront community that many will be proud to call home.
The City regularly updates this plan to ensure that it is kept current and remains relevant. The document
focuses on big picture items. The areas of focus in the strategic plan are:
1. Economic Development and Jobs

2. Infrastructure and Facilities
3. Beaches, Parks and Recreation Areas
4. Financial Stability and Continuous Improvement
5. Intergovernmental Relationships
6. Housing, Homelessness and Senior Citizens
The annual budget and capital improvement plan are developed with the goal of supporting the strategic
plan wherever feasible and economical. The past few years have seen tangible, steady progress in each
of these focus areas. This budget continues that trend through both operational and capital items. The
City Manager provides regular updates to City Council on the status of items in the plan.
The most recent Strategic Plan update can be found at www.manisteemi.gov.

Budget Reader’s Guide
Budget Overview
Budget Reader’s Guide
Welcome to the City of Manistee’s Fiscal Year 2021-2022 budget. The Budget is the guiding financial
policy document for the City of Manistee and includes all City revenues, expenditures, and capital
projects for the fiscal year. The Budget is laid out in an easy to understand and read format. The Table
of Contents should direct anyone to their particular area of interest.
If you want a quick summary of the document, the Budget Overview section provides the reader with
the big picture of the City’s finances, challenges and important issues. This provides a high-level overview
of the City’s budget and includes the City Manager’s Budget Transmittal Letter, Budget Highlights and
Budget Issues, as well as other summary information.
The General Fund is the largest part of the document and the place where most public services are
discussed, as well as most departmental budgets. Each departmental budget is presented in detail.
Reading the narrative pages for each department will give you a good understanding of the
responsibilities, operations and challenges of that department, as well as budget assumptions.
The Component Units section is comprised of the Downtown Development Authority, Ramsdell Theatre
and Brownfield Redevelopment Authority. The DDA’s budget must be approved by City Council and is
included. The Ramsdell and Brownfield Authority are also discussed.
Enterprise Funds is the next section of the document. These funds include the Water & Sewer Utility,
Municipal Marina & Boat Launch. These are Funds that operate as a business and charge user fees to
generate operating revenues.
Permanent Funds are those that are intended to be perpetual in nature and where only the earnings can
be spent. The City’s Oil & Gas fund is a permanent fund.
Special Revenue & Internal Service Funds are presented next. These funds are established for a specific
purpose, such as tracking a grant or for State mandated items, and typically have independent revenue
sources. Examples of activities that are accounted for in these funds are the Major & Local Street Funds,
Refuse Fund & Motor Pool.
Capital Project Funds are where you should look if you want to see what general physical improvements
the City is planning. These funds track capital expenditures and most current projects. Other specific
capital improvements can be found in the Enterprise and Special Revenue fund sections. Finally, the City
does not have a Debt Service Fund. Instead, City debt is recorded in the fund that it is associated with.
The Appendices provide valuable supplemental information to the reader. This section tracks
information over time, such as the number of employees and state equalized value. This information
allows the budget to serve as a record of important historic information.
We hope you find this document useful. On behalf of the City of Manistee, thank you for taking the time
to review the Fiscal Year 2021-2022 budget document.

Budget Transmittal Letter
Budget Transmittal Letter
April 6, 2021
Honorable Mayor Roger Zielinski

Members of the Manistee City Council
Mayor and Council Members:
The Fiscal Year 2021-2022 City of Manistee budget recommendations are presented for your
consideration.
The budget for your review is balanced, realistic and addresses Council priorities. The budget reflects a
taxable value increase of 3%, funds departmental operations, uses a combination of budget surplus
and fund balance to increase general fund support to the Motor Pool by $100,000, increases funding
by $20,000 to the Manistee Area Chamber of Commerce for economic development, adds a $20,000
allocation for Housing North to begin a community wide initiative to work on housing, and finally,
appropriates $30,000 for removal of blighted structures.
The proposed budget does not provide for a blight officer. The police department will continue to ramp
up its blight enforcement by monitoring the eight blight districts in the City with an officer assigned to
each district. This will provide for a higher level of accountability and increased attention on blight.
The proposed budget uses bond proceeds to fund shoreline erosion mitigation efforts, replace
infrastructure damaged by high water and make critical repairs to crucial infrastructure. It also funds
street projects and the final stage of the sewer wet weather corrective action plan.
The 2021-2022 Budget, DDA Budget and Capital Improvement Plan will be formally introduced to the
Council and the Community at the Tuesday, April 6, 2021 meeting. Various budget work sessions have
been established: a regular work session on Tuesday, April 13; a public hearing to review these budget
recommendations and receive public input on them on Tuesday, April 20; and an optional work session
on Tuesday, April 27. Budget adoption is anticipated at the Wednesday, May 5, 2021 meeting.
While the enclosed budget recommendations represent the City Manager and Administration’s best
judgment for spending based on existing City Council policies and priorities, these issues are subject to
the Council’s review and ultimate decision. Councilmembers are the elected representatives of the
people and maintain the right and responsibility of balancing the 2021-2022 budget for the City of
Manistee.
Respectfully submitted,
Thad N. Taylor
Thad N. Taylor, City Manager

Budget Highlights
Budget Highlights
The budget for all City funds, including capital outlay and debt service, totals $25,925,025. This is an
increase of $10,596,554 from the prior year budget. The large increase is due to bonded capital projects.
City Budget by Area City Budget by Type of Expense
$273,084
$2,551,131
1%
10%
General Fund
$2,546,820 $6,889,610 Sewer
10% 26% $9,201,093 Operating Expense
Water 36% $14,536,393 Capital Outlay
Streets 56%
Debt Service
Other
$2,099,351
$11,565,029 Marina, Launch
8%
45%
$2,187,539
8%
The General Fund has a total budget of $6,889,610 or 26% of total spending. The main budget is balanced
without using reserves. An additional transfer of $100,000 to the Motor Pool out of fund reserves is also
planned. Services most people associate with local government, such as police, fire & EMS, tax collection,
assessing, parks, elections and planning & zoning are funded here. Employment is stable at 55 FTE’s.
The Water Utility has budgeted expenditures for operations, capital outlay and debt service of
$2,099,351 or 8% of total spending. Water rates are proposed to increase 3.5% consistent with the rate
study recommendations.
The Sewer Utility has budgeted expenditures for operations, capital outlay and debt service of
$11,565,029 or 45% of total spending. Sewer rates are proposed to increase 3.5% consistent with the
rate study recommendations. The Sewer Utility will also be financing approximately $20 million dollars
of work over FY22 and FY23 to complete the wet weather corrective action program.
The Street budgets including Major, Local and City Street funds is $2,546,820 or 10% of total spending.
Street work on .68 miles or 13 blocks in the amount of $1,131,315 is scheduled. The budget also lays out
the proposed transportation improvement plan for FY 2021-2025 with $4,121,315 in planned work.
The Other City funds account for $2,551,131 or 10% of spending. The primary funds included here are
the Capital Improvement, Grant Management, Oil & Gas, Motor Pool and Refuse funds. The City has
applied for grants for firefighting equipment and Ramsdell Theatre master planning. Refuse collection
has been restructured with simplified service levels and a 3.5% rate increase is proposed.
The Boat Launch and Marina account for $273,084 or 1% of expenditures. In recent years, both
enterprises have taken on debt to fund significant capital investments. The Boat Launch is generally self-
sufficient. The Marina requires a subsidy from the Capital Improvement Fund to pay its debt.

Budget Highlights
Council Priorities
At the January 19, 2021 Council meeting, City Council advised staff of budget priorities that it wanted to
see addressed in the proposed budget. The following items were identified.
1. Money to Remove Blighted Structures

Funding to remove blighted structures was increased from $12,000 to $30,000, using anticipated
federal ARP Act money.
2. Money for Morton Park

A total of $35,000 was budgeted in the capital improvement fund for improvements to and
equipment for Morton Park.
3. Meet the Needs of the Departments

The budget fully funds the operating departments, maintains staffing levels, and provides for
some deferred initiatives such as police department accreditation and capital projects.
4. More Money for the Motor Pool

The budget proposes a three-year motor pool stabilization and sustainability plan, investing
$300,000 over FY2021 to FY2023, as further described in the related Issue Page.
5. Car Allowances for the Fire Chief and Police Chief

Car allowances are included in the police and fire department budgets.
6. Continue Street Improvement Plan

The budget continues to fund the Transportation Improvement Plan as discussed in the Street
section of the budget. Significant work is anticipated over the five-year plan.
7. Clean up Riverwalk\Landscaping Before the Memorial Day, Fourth of July and Labor Day
The DPW and Parks Department have put a plan in place using existing resources to make sure
these visible areas are spruced up prior to these important holidays.
8. Plan to Replace the Ladder Truck

A conceptual plan to replace the fire department ladder truck is discussed in the related issue
page.

Budget Issues
Budget Issues
There are a number of important issues, challenges and decisions that the City is facing in the upcoming
year. These areas are listed below and discussed more fully in the respective budget section, or in its
own issue page.
General Fund: The general fund is balanced without the use of fund balance. The budget does however
recommend transferring $100,000 per year over three years to stabilize the Motor Pool. See Motor Pool
Sustainability Issue Page. High priority initiatives and projects such as blight enforcement & demolition,
housing, and police department accreditation are included. However, cost pressures relating to labor
contracts, retirement contributions and high-water damage continue. The ongoing impact of the
Coronavirus Pandemic and the American Rescue Plan Act of 2021 is discussed in the COVID-19 Pandemic
Issue Page.
DDA: The DDA budget is included for your review. It includes a proposed bond to fund projects in the
Development Plan.
Water & Sewer Utilities: The water utility is faced with continuing mandates from the State regarding
asset inventory and management, lead service line identification and replacement, and more stringent
testing. The sewer utility expects millions of dollars in construction for the wet weather corrective action
plan. Both utilities continue to implement Lucity asset management and work order software.
Municipal Marina: The marina continues to struggle financially. Revenue needs to increase for it to be
able to service its debt, or the ongoing support from the capital improvement fund will have to be
maintained. Most of the docks (damaged by the seiche) were replaced last year. State waterways
commission grant funding is being pursued to help replace the remaining ones.
Refuse Fund: The refuse fund budget reflects several major changes implemented this year, including a
new five-year contract with Republic Services, relocation of the recycling center to MCC, changing the
way paper and fiber is recycled by switching to a PCA trailer, implementing a mandatory tote system
with an alternative option to use purchased garbage bags, and implementing dumpster corrals for the
Downtown.
Streets: The budget includes both Major & Local street projects and the transportation improvement
plan anticipates an average of $824,263 annual investment from FY 2021 through FY 2025.
Capital Projects: The City is working towards constructing the projects funded in the 2020 Capital
Improvement bond. High water mitigation, Riverwalk repairs, roofing projects and utility projects are all
scheduled for the upcoming year.

Budget Issues: COVID-19 Pandemic
COVID-19 Pandemic
The COVID-19 Pandemic has been going on for over a year now. This is an unprecedented situation that
has had significant impacts on the Nation, State and City. Although several effective vaccines are now
available, until adequate numbers of the population have been vaccinated, herd immunity will not be
achieved. This will likely take several months or more and we can expect continued social and economic
disruptions. City operations, such as City building closures, will continue to be impacted until the
pandemic is better controlled.
Congress recently passed, and the President signed into law, the federal American Rescue Plan Act of
2021 (ARP). This law provides, among many other provisions, direct aid for Cities. The amount of aid the
City will receive over two years is still being calculated, but the most recent estimates are over $600,000.
Unfortunately, preliminary guidance for the use of these funds is much more limited than was expected.
Until final guidance is released, there will be many unanswered questions. Because of this uncertainty,
the proposed budget only recognizes $70,000 of ARP revenue. It is earmarked for economic
development, housing and blight removal (demolition), which appear to be eligible at this time.
As further guidance is received, Administration will make recommendations to Council on how best to
deploy these additional resources.
Some of the areas that Administration is still concerned about for the City are discussed below.
• Loss of Life: There is still the potential for deaths in the community due to the pandemic.
• City Operations: Mandatory work at home for many employees is still in effect. Fortunately,
technology implemented over the past year has allowed this transition to be seamless and
productivity generally remains high. Even with the vaccine roll-out, a positive test for the virus in
the workforce would put strain on operations as people are forced to quarantine and miss work.
• Job Loss: There will undoubtedly be some loss of jobs, especially for small businesses that do not
have the resources to withstand the prolonged closure(s). However, tourism seemed to be strong
last summer, and indications are it will be a repeat this year due to pent up demand and the
desire to escape the urban areas.
• Revenue Sharing: Lower revenue sharing payments can be expected as the source of these funds
is the sales tax which has been reduced as commerce was and still is shut down.
• Act 51 Street Revenue: Lower street funding should be anticipated as the source of these funds
are gas taxes and people may not travel as much.
• Interest Income: The higher interest rates and resulting income we have been seeing has
disappeared as the Federal reserve slashed rates in an attempt to stabilize the economy.

Budget Issues: COVID-19 Pandemic
• Costs: Additional costs relating to the Pandemic have been manageable, but City departments
will clearly incur more operating supply, PPE and medical supply costs.
The proposed budget does factor in some of these impacts, but there is still a great deal of uncertainty.
Flexibility will be needed in the coming months and it is likely that future budget amendments and cost
containment will need to occur.

Budget Issues: Blight
Blight
Blight in the City is a high priority for City Council. There are a number of blighted structures, including
some in the downtown, that need to be addressed. Blight enforcement is currently carried out by the
Police Department.
The proposed budget does not recommend hiring a

part-time blight officer as was previously
recommended by the ad-hoc blight committee.
Instead, the plan is to continue the approach
identified last year which divides the City into eight
sectors and assigns one officer to each sector for
blight enforcement. This approach has been working
and provides a higher level of accountability,
enforcement and safety, while not incurring costs
that could be better spent on things like education
and demolition.
Council approved an ordinance amendment in

March to Chapter 650 Anti-Blight which streamlines
the enforcement procedure. Earlier in the year,
increases in the fines for violation of the ordinance
were adopted.
The proposed budget includes $30,000 for blight

demolition expenses.
The City Manager’s recommendation is still to not have a rubbish collection or trash haul. A twice-yearly
rubbish collection (trash haul) is extremely expensive and disruptive to both City residents and the DPW
staff. The City already offers a month bulky item pickup for all City residents. The local landfill is only a
few miles away and is an option for those who don’t wish to wait for the pickup or have more rubbish
than is allowed. Having a trash haul has an unintended consequence of people saving their garbage in
anticipation of the event(s). The City will ramp up resident education on existing options.
The Police Department has already begun ramping up blight enforcement efforts in the Downtown.

Budget Issue: Motor Pool Sustainability
Motor Pool Sustainability
The Motor Pool contains fifty-four pieces of equipment and vehicles with an estimated replacement
value today of over $6,000,000. The Motor Pool maintains a detailed 10-year rolling forecast of when
the equipment needs to be replaced, the estimated cost, how the purchase is to be financed and what
rental payments the motor pool receives from the various departments.
When first established, the Motor Pool was intended as an approach to stabilize funding and stem the
deterioration of the City’s fleet. It was never intended to be a self-sufficient funding source. Instead, it
was intended to provide working capital and buffer the year-over year budget impact to the general
and water & sewer funds from fluctuating equipment purchases. This can be seen in the chart on the
left below which shows ending Motor Pool cash reserves have fluctuated significantly over the years as
equipment needs changed. The chart on the right shows the actual motor pool departmental
contributions since 2004, which are much less variable.
Motor Pool Reserves 1991-2020 Motor Pool Contributions

$675,417
$700,000 600,000 537,410
$600,000 $587,114 500,000
$500,000 $460,154
400,000
$453,496
$425,895
$400,000
300,000
399,000
$300,000 $403,146
200,000
$200,000 $179,995 100,000
$144,519
$100,000
-
$- 20042005200620072008200920102011201220132014201520162017201820192020
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
Actual Plan
It was recognized as early as 2007 that motor pool contributions were inadequate to fund future
equipment purchases without significant adjustments in rental payments, downsizing the fleet or
extending the useful life of equipment. A plan was put in place to increase Motor Pool contributions
5% per year to help close this gap. Unfortunately, the Great Recession struck and the City was unable
to increase rental payments, particularly from the General fund. In spite of this, cash reserves were
able to grow due to the timing of prior purchase decisions, extending the life of the equipment and
ongoing efforts to smooth out the replacement schedule.
Administration has continued to extend the useful life of equipment to hold off more dramatic
adjustments but cannot do so anymore. Complicating matters are the fact that the equipment varies in
cost and lifespan which results in an “equipment bubbles” or spikes in costs from time to time that
cannot be fully eliminated. Projections show that the Motor Pool cannot sustain itself over the next
few years without a cash infusion.
The next charts show what annual cash flow and ending cash reserves would look like over the next ten
years without any assistance, and with $100,000 assistance in FY2021 – FY2023. This proposed
infusion of cash appears to be adequate to stabilize the Motor Pool over the planning horizon and
eliminate the “equipment bubble” assuming the 5% annual aggregate rent increase can be maintained.

Budget Issue: Motor Pool Sustainability
The general fund has almost doubled its fund balance since 2008 and was at almost $1,400,000 at the
end of FY 2020. There is an anticipated surplus this year of just over $100,000 based on current
estimates. Part of this growth can be attributed to lower than planned motor pool contributions.
Investing $100,000 per year for three years of these reserves will not present any meaningful
challenges to the general fund, especially in light of the low interest rate environment and ARP Act
money over the next two years. It will, however, address a long-standing problem that has no viable
solution except additional funding.

Budget Issue: Ladder Truck & Pumper
Fire Department Ladder Truck & Pumper
The City has a 1997 E1 HP70 70’ ladder truck. It was

purchased in 1997 and funded by a voted millage. The
truck is almost 25 years old and nearing the end of its
service life. It is in good working order and functions as it
should, however it is starting to cost more annually in
repairs and maintenance. Additionally, the Fire
Department feels that a new, more technologically
advanced and taller 100’ ladder truck would better serve
the City, particularly if some of the proposed multi-story
developments are constructed. The cost to replace this
unit today is about $1,200,000.
The City also has a 2004 Pierce pumper. It was purchased

in 2004 thru the Motor Pool. It is in good working order
and has an expected life of 25 years. It is scheduled for
replacement in 2029. The cost to replace this unit today
is about $650,000.
Ordinance Chapter 246 Motor Pool specifies in section 246.02 that Fire pumpers and major fire
apparatus are specifically excluded due to their capital cost, provided, however, that the City Council
may place such apparatus under the jurisdiction of the Motor Pool at some future date, by resolution.
Council effectively allowed the Motor Pool to purchase the fire pumper truck back in 2004 when they
approved the purchase, however they did not assign this piece of equipment to be under the
permanent jurisdiction of the Motor Pool. Council also cut the 1997 millage the existing ladder truck
one year short and made the final payment out of the Motor Pool. Given the discussion about Motor
Pool sustainability, it is not advisable nor feasible to change this policy now, and the past decision to
pay for the pumper and ladder truck final payment out of the Motor Pool has partially contributed to
the Motor Pool’s financial issues.
A Council priority is to come up with a plan to fund the replacement of the ladder truck. After
discussion, the recommended plan is as follows:
• Extend the life of the existing ladder until 2026 +/-.

• Ask the voters for a dedicated millage to replace both the Ladder Truck and the Pumper Truck.
• Sell the existing ladder truck and pumper truck to lessen the burden on taxpayers and/or
stabilize the motor pool.
• Over the next few years, explore partnership cost-sharing opportunities with other local units
of government and the Little River Band of Ottawa Indians.
The estimated cost of both trucks in 2026 is about $2,100,000. A ten-year loan for both trucks would
have annual debt service of about $250,000 per year. The estimated millage rate that would need to
be approved by the voters would be about 1.2 mills. This would be adjusted annually if needed. In
contrast, the initial millage rate in 1997 was 0.64 mills, but it only funded one piece of equipment.

Employees
Employees
The City of Manistee has four different unionized employee groups including the public works employees
represented by the United Steelworkers (USW), police officers represented by the Police Officers
Association of Michigan (POAM), police sergeants represented by the Command Officers Association of
Michigan (COAM), and the firefighters represented by the International Association of Fire Fighters
(IAFF). It also has two non-union groups, Department Directors and Non-Supervisory. Group
membership and collective bargaining agreements are shown below.
Employee Number of Contract Employees by Classification

Group Employees Expiration
POAM 9 June 30, 2021 Admin

8.0
COAM 3 June 30, 2021
15%
IAFF 8 June 30, 2022 Police & Fire
Utility
USW 23 June 30, 2023 20.5
10.0
38%
Non-Union 6.5 n/a 18%
Supervisory 5 n/a Public Works
Manager 1 n/a 16.0
29%
Total 55.5
The public safety unions, consisting of the Employees by Representation

POAM, COAM and IAFF have binding arbitration
rights under PA 312, whereas the USW does not.
This means that if negotiations reach an
impasse, an independent arbitrator will review Non Union
23%
the issues and make a final decision for these
three unions. Union
77%
The City recently went thru arbitration with both
the POAM and COAM. A final ruling was issued
in late June 2019. The ruling covered a large
number of issues, but the most significant were
mandating a two week 84-hour schedule rather than an 80-hour schedule; limiting flexibility in
scheduling; providing higher year one wages; and disallowing language to bring the contracts into better
conformity with other employee groups and the personnel policies. This ruling has raised costs for the
City significantly and has put increased pressure on general fund finances. Both POAM and COAM
contracts expire June 30, 2021 and will be renegotiated.
Staffing
The current year budget calls for stable staffing at 55.5 FTE.

Employees
Staffing Trends
The City workforce has been reduced by 9.5 employees or 15% from FY 2004 to 2022. However, staffing
has been relatively stable since 2012. The biggest reduction has been in upper management where the
number of department heads has been reduced from eight to five through consolidation of
departmental oversight and outsourcing. Most of the reductions were the result of attrition, or not
replacing an employee when they retire or resign. Future headcount reduction cannot be ruled out if
general fund revenues do not start growing at a faster pace, or resource demands on the general fund
do not lessen.
Total Employees
57.5 57.0
57.0
56.5
56.5
56.0
56.0 56.5 56.5
56.0 55.5
55.5 55.5
55.5
55.0
54.5
54.0 54.5
53.5
53.0
NUMBER OF EMPLOYEES (Full-Time & Permanent Part-Time Only, Excludes Seasonal)
Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Manager 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Finance/Clerk 4.0 4.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Assessor 1.0 1.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Planning & Zoning 3.5 4.0 3.0 1.0 1.0 1.0 1.0 0.0 0.0 0.0
Municipal Building 0.5 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Police 12.0 12.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.5
Fire\EMS 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.0
Public Works 11.0 11.0 12.0 13.0 12.0 14.0 14.0 14.0 14.0 14.0
Parks 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
General Fund 44.5 44.5 45.5 45.5 44.5 46.5 46.5 45.5 45.5 45.5
Water 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Sewer 7.0 7.0 5.0 5.0 6.0 6.0 6.0 6.0 6.0 6.0
Water & Sewer 11.0 11.0 9.0 9.0 10.0 10.0 10.0 10.0 10.0 10.0
Ramsdell Theatre 1.0 1.5 1.5 1.5 0.0 0.0 0.0 0.0 0.0 0.0
Ramsdell Theatre 1.0 1.5 1.5 1.5 0.0 0.0 0.0 0.0 0.0 0.0
Grand Total: 56.5 57.0 56.0 56.0 54.5 56.5 56.5 55.5 55.5 55.5
General 45.5 46.0 47.0 47.0 44.5 46.5 46.5 45.5 45.5 45.5
Water & Sewer 11.0 11.0 9.0 9.0 10.0 10.0 10.0 10.0 10.0 10.0

Employees
Payroll
The charts below show a variety of information about employee wages and benefits City-wide. Each key
area is explored in greater detail in the following pages.
City Payroll
Taxes & Fringes

$481,794
9%
Wages
Retirement $3,483,799
$725,907 63%
13%
Health
$830,826
15%
FY 2021 FY2022
Category Budget Budget Difference Percentage
Wages $3,444,362 $3,483,799 $39,437 1.1%

Health $832,725 $830,826 ($1,899) -0.2%
Retirement $542,264 $725,907 $183,643 33.9%
Taxes & Fringes $433,040 $481,794 $48,754 11.3%
$5,252,391 $5,522,326 $269,935 5.1%

Employees
Wages
Employee group wages are adjusted annually on Wages Including OT & Standby
July 1 and are adopted as part of the overall
budget. Each employee group has an established Other
Police
wage and step schedule. A step schedule is a $638,603
18% $819,299
24%
mechanism by which employees’ annual wages
are developed. It establishes an introductory W&S
wage for a position, and then over a period of $574,975
16%
Fire
$507,858
years moves employees through a series of wage 15%
increases, or steps, as their experience and DPW & Parks
$943,064
abilities develop. Eventually, the employee hits 27%
the top of the wage scale and no longer receives
an annual step increase.
Non-union groups have a wage and step scale based on a comprehensive compensation and
classification study done several years ago. Union group wage and step scales are based upon collective
bargaining and comparables. To account for inflation, each wage scale is annually adjusted by an
inflationary percentage. The budget includes an inflation adjustment and step increases for employees.
Wage Employees Average Average

Total FT Scale Receiving Overall Overall Average Average Fringe Annual
Group Employees Inflation Steps Increase % Increase Wage Fringe Percentage Cost
Police 13 TBD 4 $29,406 4.0% $63,023 $38,114 38% $101,137
Fire 8 2.00% 4 $15,849 3.5% $63,482 $54,434 46% $117,916
DPW 26 2.25% 8 $37,229 2.8% $58,386 $31,507 35% $89,893
Other 8 2.00% 5 $18,437 3.3% $71,399 $30,571 30% $101,970

Employees
Pension
The City is a member of the Municipal Employees’ Retirement System of Michigan (MERS). Most of the
City’s employees are covered under one of a number of defined benefit (DB) retirement plans
administered through MERS. MERS calculates an annual contribution for each DB plan. As of the most
recent actuarial valuation, the retirement plan is funded at 74%. This funded percentage has generally
declined over time, primarily due to the market crash of 2008, and more recently, updated MERS
experience study. This equates to a higher required annual City contribution. The City has budgeted for
the full impact of these new assumptions rather than spreading them over five years as MERS allows, in
order to strengthen the funded position. The table below shows relevant pension information.
FY: 2022 AAV: 12/31/2019

MERS Pension Cost Percent Estimated
W&S
$51,448 Division Status Funded Annual Cost
7%
01 Non-Union Open 70.8% 176,916
DPW & Parks
$100,399 Police 02 POAM Closed 75.8% 131,976
14% $246,706 05 IAFF Closed 57.2% 195,624
34% 10 USW Closed 87.8% 75,972
Other 11 USW a 7/1/2012 Open 88.4% 20,904
$112,047 12 USW a 7/1/2011 Closed 109.2% 1,896
16%
13 IAFF after 7/1/2018 Open 189.3% 12,288
Fire
$207,912 20 COAM Closed 75.7% 57,120
29% 21 POAM a 7/1/2015 Open 65.1% 23,976
22 COAM a 7/1/2015 Open 63.7% 21,840
Overall 73.7% 718,512
The estimated annual cost is a MERS actuarial calculation comprised of the normal cost which is the
ongoing cost of the retirement benefit and the amortization of the unfunded accrued liability. The
current unfunded accrued liability is $5,871,579. The City has made modifications to pensions for new
hires in order to protect the pension system and reduce costs and long-term liabilities in the future. This
has already been done for the USW, IAFF, POAM and COAM which all have reduced multipliers. The City
also made changes to the department head and non-union benefit for new hires, moving them to a DC
plan. Further changes to POAM, COAM were being negotiated in the last contract but were denied by
the Arbitrator. All employees also have access to a 457 deferred compensation plan thru ICMA.
MERS made further adjustments to its actuarial assumptions for the annual valuation ended December
31, 2019. The rate of return reduced from 7.75% to 7.35% and the wage inflation will be reduced from
3.75% to. This was a significant change and was the primary driver of the 34% higher required
contribution. These changes also shaved 6% off of our funded percentage. It is important to note that
MERS is adjusting contributions annually to bring municipalities up to 100% over 20 years as shown in
the graphs on the following pages. The City’s contributions will continue to rise but will eventually fall
off sharply as we approach 100% funding (green line).
Excellent rates of return over the past two years should help improve our funding level and stabilize
required contributions.

Employees

Employees
Health Insurance
The City provides health insurance to all full-time employees. It has been a long-standing City objective
to provide quality, affordable health coverage to employees as a method of attracting and retaining
talented staff. However, maintaining quality coverage has become more difficult as health insurance
continues to increase faster than inflation and is the second biggest employee expense behind wages.
The City switched from Blue Cross to Priority Health in 2018 due to cost savings. In addition to health
insurance, the City provides dental & vision insurance to employees. Retiree health insurance is capped
and limited to $250 per month till Medicare or age 65.
The total cost of all health, dental and vision coverages, including retirees and active opt outs is
$1,004,000. The total City cost is $834,000 and the employee cost is $170,000. The amount the
employees pay is based on contractual language that is also applied to Department Directors and
General employees. In 2011, a State law was passed that limits the amount that public employers can
pay for health insurance. The City is complying with this requirement. The City pays 100% of dental and
vision coverages.
Monthly Medical Insurance Premium
Category Single Double Family
City $426 $1,036 $1,303

Employee $130 $300 $367
Total $557 $1,336 $1,670
Employee % 23.4% 22.4% 22.0%
Total Health, Dental & Vision Costs City Health Cost Breakdown
Retiree
OptOut $31,500
Employee $38,400 4%
Portion Vision 5%
$170,479 $7,556
17% 1%
Dental Health
$29,711 HSA $597,658
3% $126,000
City Portion 72%
15%
$834,075
83%

Employees
Fringes
Fringes include such items as social security, medicare, worker’s compensation, unemployment and life
insurance and car allowances.
Post-Employment Benefits
The City generally provides a contribution of $250 per month for retirees from retirement age until
eligibility for Medicare toward health insurance. The City is working toward getting all retirees off the
City plan and using the opt out instead. This self-imposed hard cap has generally limited the City’s
contribution for this benefit to about $20,000-$30,000 per year. This is in stark contrast to many other
communities where retiree healthcare has created multi-million-dollar unfunded liabilities. Because of
the nature of this benefit, the City funds it on a pay as you go basis. This benefit has been eliminated for
all new hires.
Conclusion
The City’s employees are its most valued asset. None of the high level of services that Manistee residents
enjoy would be possible without the City’s highly trained and dedicated workforce. The proposed budget
has treated employees fairly and equitably.

City Debt
City Indebtedness
The City has eleven outstanding bond issues for a variety of purposes. It also has eleven outstanding
bank installment purchase contracts and internal loans. These bond issues and loans create a first
demand on City financial resources, before any discretionary funding. It is necessary to remain aware of
these obligations as the City makes decisions on other financial matters.
Bond Debt by Type Other Debt by Type

$- $- $1,157
$11,166,725 0% 0% 0%
23% $136,882
Revenue 9%
$5,148 State of MI
General Obligation 0%
Installment Purchase
$37,665,578 Michigan Transportation $1,492,840 Lease

77% Fund 91% Internal
Downtown Development
Bond Debt by Source of Repayment

Other Debt by Source of Repayment
$- $1,120,891
$758,920
0% 2%
2% $3,374,456 $6,305
7% 0%
$3,519,101 Water $761,157 General Fund
7% 47%
Sewer Motor Pool
Marina
General Fund $14,536
1% $731,683 Boat Launch
$40,058,935 Street Funds 45% Capital Improvement
82%
Capital Improvement $122,346
Fund 7%
Detailed information on all of the City’s debt is found on the next few pages. It should be noted that the
cost of capital for most of the City’s debt is at quite advantageous rates, particularly the loans through
the SRF, DWRF and USDA Rural Development programs.
Refunding activity is an important part of the City’s financial management. When market and bond
covenants allow, the City will refinance previous debt issues to save money. The City will likely be
refunding its 2010 Capital Improvement Bond in the upcoming year, as well as issuing a new capital
improvement bond and additional USDA Rural Development sewer financing.

City Debt
Outstanding Bond Debt

As of 7/01/2021 Original Remaining Remaining Total FY 2022
Public Years Principal Principal Interest Remaining Principal
Issue # Issue Name Purpose Type Act Paid By Expires Left Balance Balance Payments Payments Payments
1 2006 SRF WWTP Revenue 94 Water & Sewer 2027 6 $ 2,757,270 $ 897,270 $ 50,353 $ 947,623 $ 145,000
2 2010 SRF CSO Revenue 94 Water & Sewer 2031 10 $ 705,000 $ 371,075 $ 48,005 $ 419,080 $ 30,000
3 2010 DWRF Water Revenue 94 Water & Sewer 2031 10 $ 465,000 $ 265,000 $ 34,438 $ 299,438 $ 20,000
4 2011 SRF CSO Revenue 94 Water & Sewer 2032 11 $ 1,485,000 $ 740,774 $ 105,260 $ 846,034 $ 65,000
5 2011 DWRF Water Revenue 94 Water & Sewer 2032 11 $ 775,000 $ 252,555 $ 35,564 $ 288,119 $ 20,000
6 2013 CI Refunding City Hall GO LT 34 General Fund 2024 3 $ 2,950,000 $ 760,000 $ 29,375 $ 789,375 $ 225,000
7 2015 W&S Revenue CSO Revenue 94 Water & Sewer 2036 15 $ 2,770,000 $ 2,680,000 $ 766,438 $ 3,446,438 $ 85,000
8 2017 W&S Rev & Refund CSO Revenue 94 Water & Sewer 2038 17 $ 3,475,000 $ 1,925,000 $ 719,152 $ 2,644,152 $ 80,000
9 2020 USDA RD 1 A & B CSO Revenue 94 Sewer 2060 39 $ 4,700,000 $ 4,655,000 $ 1,667,575 $ 6,322,575 $ 86,000
10 2020 Cap Imp Various GO LT 34 Various 2041 20 $ 8,425,000 $ 8,425,000 $ 1,952,350 $ 10,377,350 $ 285,000
11 2021 USDA RD 2A & B CSO Revenue 94 Sewer 2061 40 $ 18,000,000 $ 18,000,000 $ 4,452,120 $ 22,452,120 $ 359,000
TOTAL $ 46,507,270 $ 38,971,674 $ 9,860,629 $ 48,832,303 $ 1,400,000
Total Total Total Total Total Total

Type of Bond Debt Principal Interest Debt Source of Funds to Repay Principal Interest Debt
Revenue $ 29,786,674 $ 7,878,904 $ 37,665,578 Water $ 2,791,482 $ 582,974 $ 3,374,456

General Obligation $ 9,185,000 $ 1,981,725 $ 11,166,725 Sewer $ 31,701,366 $ 8,357,569 $ 40,058,935
Michigan Transportation Fund $ - $ - $ - General Fund $ 2,945,013 $ 574,088 $ 3,519,101
Downtown Development $ - $ - $ - Street Funds $ 619,224 $ 139,696 $ 758,920
Capital Improvement Fund $ 914,588 $ 206,303 $ 1,120,891
Total $ 38,971,674 $ 9,860,629 $ 48,832,303 DDA $ - $ - $ -
Total $ 38,971,674 $ 9,860,629 $ 48,832,303

City Debt
Total Existing Bond Debt by Fiscal Year
Principal Interest Total
2022 $ 1,427,555 $ 723,419 $ 2,150,974

2023 $ 1,476,000 $ 692,381 $ 2,168,381
2024 $ 1,511,000 $ 660,131 $ 2,171,131
2025 $ 1,502,000 $ 627,188 $ 2,129,188
2026 $ 1,552,000 $ 593,193 $ 2,145,193
2027 $ 1,560,270 $ 557,217 $ 2,117,487
2028 $ 1,579,774 $ 517,870 $ 2,097,644
2029 $ 1,574,000 $ 478,649 $ 2,052,649
2030 $ 1,610,000 $ 439,574 $ 2,049,574
2031 $ 1,652,075 $ 399,208 $ 2,051,283
2032 $ 1,252,000 $ 361,508 $ 1,613,508
2033 $ 1,220,000 $ 330,943 $ 1,550,943
2034 $ 1,225,000 $ 302,798 $ 1,527,798
2035 $ 1,217,000 $ 276,623 $ 1,493,623
2036 $ 1,243,000 $ 250,465 $ 1,493,465
2037 $ 994,000 $ 228,129 $ 1,222,129
2038 $ 1,011,000 $ 209,721 $ 1,220,721
2039 $ 897,000 $ 193,575 $ 1,090,575
2040 $ 909,000 $ 179,806 $ 1,088,806
2041 $ 921,000 $ 165,849 $ 1,086,849
2042 $ 569,000 $ 155,353 $ 724,353
2043 $ 576,000 $ 148,351 $ 724,351
2044 $ 582,000 $ 141,261 $ 723,261
2045 $ 589,000 $ 134,099 $ 723,099
2046 $ 596,000 $ 126,848 $ 722,848
2047 $ 604,000 $ 119,508 $ 723,508
2048 $ 611,000 $ 112,068 $ 723,068
2049 $ 619,000 $ 104,539 $ 723,539
2050 $ 627,000 $ 96,905 $ 723,905
2051 $ 634,000 $ 89,171 $ 723,171
2052 $ 642,000 $ 81,349 $ 723,349
2053 $ 651,000 $ 73,426 $ 724,426
2054 $ 658,000 $ 65,388 $ 723,388
2055 $ 666,000 $ 57,260 $ 723,260
2056 $ 675,000 $ 49,033 $ 724,033
2057 $ 684,000 $ 40,689 $ 724,689
2058 $ 692,000 $ 32,229 $ 724,229
2059 $ 700,000 $ 23,669 $ 723,669
2060 $ 709,000 $ 15,009 $ 724,009
2061 $ 554,000 $ 6,233 $ 560,233
$ 38,971,674 $ 9,860,629 $ 48,832,303

City Debt
Outstanding Bank\Other Debt

As of 7/01/2021 Original Remaining Remaining Total FY 2022 FY 2022
Public Years Principal Principal Interest Remaining Principal Interest
Issue # Issue Name Purpose Type Act Paid By Expires Left Balance Balance Payments Payments Payments Payments
1 Renaissance Park Economic Dev State Loan n/a General Fund 2022 1 $ 102,000 $ 5,148 $ - $ 5,148 $ 5,616 $ -
2 Marina Building Marina IPA 99 CapImp\Marina 2026 5 $ 380,000 $ 147,309 $ 14,623 $ 161,932 $ 26,747 $ 5,639
3 Marina Building Marina Internal n/a Marina 2021 0 $ 274,482 $ 116,413 $ 5,933 $ 122,346 $ 27,678 $ 2,908
4 Arthur St. Launch Boat Launch Internal n/a Boat Launch 2022 1 $ 135,000 $ 14,248 $ 288 $ 14,536 $ 13,966 $ 569
5 Ramsdell HVAC Ramsdell IPA 99 Cap Imp 2027 6 $ 1,250,000 $ 538,499 $ 60,726 $ 599,225 $ 86,914 $ 22,036
6 Braun Ambulance Fire IPA 99 Motor Pool 2023 2 $ 257,904 $ 55,774 $ 2,302 $ 58,075 $ 26,735 $ 2,265
7 Kyocera Copier Manager Lease n/a General Fund 2022 1 $ 8,500 $ 1,133 $ 24 $ 1,157 $ 1,850 $ 134
8 Plow Trucks DPW IPA 99 Motor Pool 2023 2 $ 160,000 $ 82,248 $ 3,533 $ 85,780 $ 38,330 $ 4,560
9 Vactor DPW IPA 99 Motor Pool 2025 4 $ 350,000 $ 241,898 $ 23,346 $ 265,244 $ 53,046 $ 13,265
10 Loader DPW IPA 99 Motor Pool 2023 2 $ 150,000 $ 77,644 $ 4,206 $ 81,850 $ 35,540 $ 5,385
11 TA Plow Truck DPW IPA 99 Motor Pool 2024 3 $ 160,000 $ 121,365 $ 5,872 $ 127,236 $ 38,635 $ 3,777
12 SA Plow Truck DPW IPA 99 Motor Pool 2024 3 $ 145,000 $ 109,585 $ 3,913 $ 113,498 $ 35,888 $ 1,944
TOTAL $ 3,372,886 $ 1,511,263 $ 124,764 $ 1,636,027 $ 390,945 $ 62,483
Total Total Total

Type of Debt Principal Interest Debt Total Existing Bank\Other Debt by FY
State of MI $ 5,148 $ - $ 5,148 Principal Interest Total

Installment Purchase $ 1,374,321 $ 118,520 $ 1,492,840
Lease $ 1,133 $ 24 $ 1,157
Internal $ 130,661 $ 6,221 $ 136,882 2022 $ 405,181 $ 46,953 $ 452,134
2023 $ 396,538 $ 34,831 $ 431,369
2024 $ 295,839 $ 22,639 $ 318,479
Total $ 1,511,263 $ 124,764 $ 1,636,027 2025 $ 224,697 $ 13,537 $ 238,234
2026 $ 135,509 $ 5,827 $ 141,336
Total Total Total 2027 $ 53,499 $ 976 $ 54,475
Source of Funds to Repay Principal Interest Debt
General Fund $ 6,281 $ 24 $ 6,305

Motor Pool $ 688,513 $ 43,171 $ 731,683 $ 1,511,263 $ 124,764 $ 1,636,027
Marina $ 116,413 $ 5,933 $ 122,346
Boat Launch $ 14,248 $ 288 $ 14,536
Capital Improvement $ 685,808 $ 75,349 $ 761,157
Total $ 1,511,263 $ 124,764 $ 1,636,027

Budget Appropriation
Budget Adoption
CITY OF MANISTEE
FY 2022 GENERAL APPROPRIATIONS ACT
BUDGET ADOPTION LIST
It was moved by , supported by, , that the City of Manistee Budgets for FY 2021-
2022 be adopted as presented by the City Manager on April 6, 2021 and modified by Council work
sessions, including tax levy, operating expenses, capital outlay, debt service, appropriations, schedule
of fees and other matters included in the following:
GENERAL FUND 2022
101 - GENERAL FUND

Total Revenue 6,789,610
Total Expense 6,889,610
101 - Legislative 39,056

172 - Manager 251,392
215 - Clerk 213,143
247 - Board of Review 2,762
253 - Finance 367,052
257 - Assessor 103,731
262 - Elections 17,136
265 - City Hall 180,615
275 - General Government 549,020
301 - Police 1,440,871
336 - Fire 1,208,084
441 - Public Works 1,541,917
701 - Planning & Zoning 101,912
751 - Parks and Recreation 421,656
801 - Appropriations 200,200
905 - Debt 251,063
DOWNTOWN DEVELOPMENT
AUTHORITY 2022
Revenue 328,400
Expense 378,500

ENTERPRISE FUNDS 2022
592 - WATER UTILITY

Total Expenses 1,178,570
Total Debt 247,688
Total Capital 673,093
593 - SEWER UTILITY

Total Expenses 1,499,800
Total Debt 1,537,229
Total Capital 8,528,000
594 - MUNICIPAL MARINA FUND

Revenue 239,000
Expenses 156,800
Debt 61,548
501 - BOAT LAUNCH FUND

Revenue 35,020
Expenses 20,100
Debt 34,636
PERMANENT FUNDS 2022
245 - OIL & GAS FUND

Revenue 655,000
Expense 478,699
INTERNAL SERVICE FUNDS 2022
661 - MOTOR POOL FUND

Revenue 556,300
Expense 648,712

SPECIAL REVENUE FUNDS 2022
202 - MAJOR STREET FUND

Revenue 1,002,500
Expense 1,490,424
203 - LOCAL STREET FUND

Revenue 580,274
Expense 976,171
Debt 50,225
204 - CITY STREET FUND

Revenue 30,000
Expense 30,000
226 - REFUSE FUND

Revenue 759,570
Expense 725,700
249 - BUILDING INSPECTION

Revenue 80,000
Expense 74,000
272 - PEG COMMISSION

Revenue 4,500
Expense 4,500
CAPITAL PROJECT FUNDS 2022
430 - CAPITAL IMPROVEMENT FUND

Revenue 414,249
Expense 436,233
275 - GRANT MANAGEMENT

Revenue 252,137
Expense 252,137
496 - RENAISSANCE PARK FUND

Revenue 5,150
Expense 0
Debt Service 5,150

The Manistee City Council hereby establishes a property tax levy of 17.7612 mills for General Fund
operations and 1.15 mills for Refuse Fund operations for FY 2022.
In City water and sewer consumption charges are established at $3.36 and $9.21 per 1,000 gallons
respectively for bills issued after July 1, 2021.
Refuse residential and commercial tote charges are established at $16.30 per month for once weekly
pick-up for bills issued after July 1, 2021.
Other fees and charges are established in the included schedule of fees and\or City ordinance.
Designated depositories for the City for FY 2022 are: Charles Schwab, TCF Bank, Flagstar Bank, Honor
Bank, Huntington Bank, Michigan CLASS, PNC Bank, Shelby State Bank, and West Shore Bank.
Adopted by the Manistee City Council on May 5, 2021.
____________________________________________________________
Roger Zielinski, Mayor
______________________________________________________________
Heather Pefley, City Clerk

Budget Changes
Budget Change Summary
During the budget process, changes are often made to the Manager’s proposed budget. These changes
will be summarized here, and reflected in the budget numbers, narratives and annual appropriation act.
The changes were as follows:

Overview
General Fund

Overview
Overview
The general fund is the primary City operating fund. It is through this fund that most City services are
provided. Financial stability in the general fund is vital if high and consistent service levels are to be
maintained. The City was finally recovered from the Great Recession of 2008-2009, when the COVID-19
pandemic struck. Fortunately, it appears the impact on City government from the pandemic will be
much less than anticipated. This is discussed further in the COVID-19 Pandemic Issue Page.
The budget is balanced but does include a $100,000 transfer out to the Motor Pool Fund as discussed in
the Motor Pool Sustainability Issue Page.
2019-20 2020-21 2020-21 2021-22 DOLLAR PERCENT

101 - GENERAL FUND ACTIVITY BUDGET PROJECTED BUDGET CHANGE CHANGE
REVENUES 6,406,712 6,437,173 6,476,900 6,789,610 352,437 5.5%
LEGISLATIVE 45,645 48,956 47,156 39,056 (9,900) -20.2%

MANAGER 235,930 221,083 220,031 251,392 30,309 13.7%
CLERK 181,300 194,677 194,422 213,143 18,466 9.5%
BOARD OF REVIEW 1,468 3,002 2,095 2,762 (240) -8.0%
FINANCE\TREASURER 331,626 351,594 346,839 367,052 15,458 4.4%
ASSESSOR 93,372 99,794 97,694 103,731 3,937 3.9%
ELECTIONS 21,714 17,833 17,633 17,136 (697) -3.9%
CITY HALL\BLDGS 167,923 172,466 171,311 180,615 8,149 4.7%
GENERAL 481,278 445,008 441,620 549,020 104,012 23.4%
POLICE 1,246,910 1,353,399 1,364,030 1,440,871 87,472 6.5%
FIRE 1,114,558 1,150,579 1,174,101 1,208,084 57,505 5.0%
PUBLIC WORKS 1,389,414 1,471,570 1,411,959 1,541,917 70,347 4.8%
PLANNING & ZONING 91,680 96,361 95,061 101,912 5,551 5.8%
PARKS & RECREATION 468,957 412,801 382,588 421,656 8,855 2.1%
APPROPRIATIONS 162,000 151,800 151,800 200,200 48,400 31.9%
DEBT SERVICE 373,300 246,250 246,250 251,063 4,813 2.0%
TOTAL EXPENSE 6,407,075 6,437,173 6,364,590 6,889,610 452,437 7.0%
TOTAL GENERAL
FUND (363) 0 112,310 (100,000)

Overview
Financial Reserves
One key to financial stability is adequate, General Fund Balance
healthy financial reserves or fund balance. $1,500,000 40.0%
This is true for three primary reasons. First, 30.0%
$1,000,000
a reasonable fund balance provides 20.0%
insurance against natural disasters or $500,000
10.0%
unexpected events and provides resources $- 0.0%
to address such events. The severe storm
in June 2008, the April 2018 seiche and
recent near-record high water erosion are
Fund Balance % Fund Balance
good examples.
Second, an appropriate fund balance provides an opportunity for investment earnings. Investment
earnings can reduce the demand on other revenue sources and provide further stability for municipal
operations. Interest rates had improved considerably in recent years as the Federal Reserve started
raising interest rates. However, the dramatic rate cuts in response to the COVID-19 Pandemic reversed
that trend and greatly reduce our interest income.
Third, fund balance provides stability in the event of an economic downturn, one-time or nonrecurring
expenses, volatile fuel prices and unexpected budget variances. An adequate cash reserve provides an
opportunity to absorb these items without dramatically altering the services provided. The City has
tapped the fund balance in the past to address issues such as tax appeal refunds, excess overtime,
gasoline price spikes and health insurance. Use of fund balance is recommended again to stabilize the
Motor Pool fund. See Motor Pool Sustainability Issue Page. After three years of surpluses or flat budget
primarily due to extra State personal property tax reimbursement and conservative budgeting, a modest
surplus is expected in FY 2021, which is recommended for use in the Motor Pool sustainability plan.
As a rule, Council and Administration have made the structural changes necessary to balance the budget
without unduly depleting the City’s reserves. Projections indicate additional structural changes, or
reprioritizing spending, may be needed in a few years absent changes in municipal funding levels. This
year the budget is balanced, but in the future, rising costs outpacing revenue growth will present
challenges.
Council has established a General fund balance target of 20% of prior year operating expense, including
transfers out for operations and general fund paid debt service. Pass through debt service is excluded.
Depending on priorities, any percentage over 20% may be transferred into the Capital Improvement
fund. In 2006 and 2007, a total of $410,000 was transferred. The June 30, 2020 audit showed a general
fund balance of $1,384,921 a decrease of $363 from the prior year. The fund balance percentage was at
21.6%. It is expected to fall to 20.2% at the end of FY 2022.

Revenue
Revenue
Description
General fund revenue comes from a number of sources, primarily local property taxes and sales taxes
from the State in the form of revenue sharing. Interfund transfers in the form of reimbursements and
administration fees are also important. Total revenue is budgeted at $6,789,610 and increase of 5.5%.
Issues
Revenues are projected to grow strongly in FY2022. This is primarily due to strong taxable value growth,
marijuana excise taxes and one-time Federal funding. Future growth is not expected to grow at a similar
pace and may be inadequate to offset rising costs and maintain service levels and funding priorities
moving forward. Although the tax base is showing growth this year, the State has shown no interest in
increasing discretionary revenue sharing to local communities, although there is a significant lobbying
push to do so. Increased revenue from marijuana licensing fees and taxes should help in future years.
Infographics
Revenue is comprised of a variety of sources.
Total General Fund Revenue

Other
Sales Fees Revenue 62,385 7,000,000
Charges 1%
577,400 6,500,000
9%
6,000,000
5,500,000
Inter-Fund
1,364,500
5,000,000
20%
Tax Revenue
3,676,100 4,500,000
State Revenue 54%
1,109,225
4,000,000
16%
Property Taxes
The City is levying the maximum operating millage allowed at 17.7612 mills. The City Charter authorizes
20.00 mills, but this has been reduced by Headlee millage rollbacks. Taxable value grew by 3.0%.
Tax Revenue Taxable Value Growth Rate

3,700,000 20.0%
3,650,000 14.6%
3,600,000 15.0%
3,550,000
10.0% 7.6% 8.4%9.0%
3,500,000 5.1%3.5% 0.9% 4.0%
3,450,000 5.0%
5.0%4.7%
3.0% 0.2% 1.2%
2.5% 3.0%
3,400,000
3,350,000 0.0%
3,300,000 -1.7%
3,250,000 -5.0% -1.6% -1.6%-2.9%
-1.4%
3,200,000 -1.8% -3.6%
-10.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Revenue
Revenue Sharing
The City used to receive both constitutional and statutory revenue sharing. Statutory revenue sharing
has since been eliminated and replaced with the City, Village and Township Revenue Sharing program
(CVTRS). Total revenue sharing has declined by 25% since 2001. Total loss of statutory and\or CVTRS
payments since 2001 is over $5,900,000. Many third-party observers have stated that the State’s
municipal finance system is broken. The Michigan Municipal League has done extensive research on the
matter and discovered a remarkable statistic: Michigan is the only State that spends less on Local
Government than it did in 2002. Although there is a concerted effort among local officials to lobby the
legislature for additional revenue sharing, efforts have so far fallen flat. The City is hopeful, but not
optimistic, that this effort will succeed in the future.
State Revenue Sharing

$1,100,000 Loss of Revenue Sharing
$1,200,000
$999,565
$1,000,000
$1,000,000
$900,000
$800,000
$5,969,648
Loss
$800,000
$749,025
$600,000
$700,000
$400,000
$600,000 Total
$200,000
$500,000
$-
Total Loss
Budget Notes
Total revenue increased $352,437 or 5.5%.
Tax Revenue: Property tax and related revenue increased $118,660 or 3.3% from the prior year budget.
This category includes taxes, payment in lieu of taxes, penalties and interest, and administration fee.
Taxable value in the City showed an increase as property values and assessments rise. PILOT decreased
as several start to phase out in the Townships and new housing PILOT’s haven’t yet started.
Sales, Fees & Charges: These revenues decreased $18,200 or -3.1% from the prior year budget. This
revenue relates to business registrations, franchise fees, charge for services and sales. The decrease is
driven by fewer than expected marijuana grow license fees and slowing EMS transport fees.
Other Revenue: These revenues decreased by $15,523 or -19.9%. The decrease was due to lower
interest income.
State & Federal Revenue: These revenues increased $170,100 or 18.1% from the prior year budget. This
category includes various money received from the State, primarily revenue sharing and CVTRS, and local
community stabilization fees. Revenue sharing is budgeted to increase. Federal revenue also increased
due to American Rescue Plan revenues. See COVID-19 Pandemic Issue Page.
Interfund Revenue: These revenues increased by $97,400 or 7.7% from the prior year budget. This is
due to inflationary increases on administrative fees, which is tied to revenues in other funds, adjustment
of admin fee percentage as appropriate to reflect effort, and US31 maintenance reimbursement.

Revenue
2019-20 2020-21 2020-21 2021-22

000 - Revenue ACTIVITY BUDGET PROJECTED BUDGET
TAXES - REAL/PERSONAL PROPERT 3,045,676 3,161,000 3,161,000 3,267,000

TAXES - DELINQ REAL PROPERTY 136,145 157,000 157,000 162,000
TAXES - DELINQ PERSONAL PROP 0 1,900 7,000 1,900
TAXES - PAYMENT IN LIEU OF 111,673 128,140 130,000 125,200
TAXES - PENALTIES & INTEREST 28,604 18,200 28,000 25,700
TAXES - ADMINISTRATION FEE 95,847 91,200 91,000 94,300
TAX REVENUE 3,417,945 3,557,440 3,574,000 3,676,100
PERMIT - BUSINESS REGISTRATIO 60,900 82,000 46,500 67,000

PERMIT - FRANCHISE FEES 117,649 121,000 121,000 122,000
PERMIT - NON-BUSINESS 15,770 10,000 10,000 10,000
ELECTIONS 10,201 2,000 5,000 5,000
CHARGE FOR SERVICE 67,059 82,300 82,300 83,400
CHARGE FOR SERVICE - EMS TRANSP 268,073 280,000 280,000 275,000
SALES 20,448 11,000 10,000 10,000
RENTAL INCOME 8,050 7,300 7,000 5,000
SALES FEES CHARGES 568,150 595,600 561,800 577,400
FINES & FORFEITS 18,251 20,000 17,000 20,000

INVESTMENT - INTEREST 22,758 15,733 2,000 1,937
RIVERFRONT LEASE INCOME 24,927 25,675 26,000 26,448
OTHER REVENUE 744 500 2,000 500
CONTRIBUTIONS / DONATIONS 2,510 1,500 1,500 1,500
REIMBURSEMENT 167,966 2,000 2,000 2,000
REFUNDS 16,999 12,000 10,500 10,000
REFUNDS - WORK/COMP PREMIUM 0 500 0 0
INSURANCE SETTLEMENT 78,972 0 0 0
TRANSFERS IN 0 0 0 0
OTHER REVENUE 333,127 77,908 61,000 62,385
FEDERAL GRANT - GENERAL GOVT 5,139 0 0 0

FEDERAL GRANT - PUBLIC SAFETY 9,015 0 0 0
FEDERAL GRANT - OTHER 0 0 201,000 70,000
TAXES - MARIJUANA 0 0 28,000 100,000
STATE GRANT - OTHER 1,185 0 0 0
STATE GRANT - PUBLIC SAFETY (SSCENT) 0 0 0 0
STATE GRANT - UNDERAGE DRINKING 0 0 0 0
STATE GRANT - CRIMINAL JUSTIC 1,935 2,100 2,000 2,000
STATE GRANT - LOCAL COMM STAB 216,629 180,000 180,000 180,000
STATE GRANT - REVENUE SHARING 537,851 570,383 526,000 570,383
STATE GRANT - CVTRS 145,235 178,642 175,000 178,642

Revenue
STATE GRANT - LIQUOR LICENSE 8,835 8,000 8,200 8,200
STATE & FEDERAL REVENUE 925,824 939,125 1,120,200 1,109,225
CHARGE FOR SERVICE - BLDG INS 0 8,000 10,000 10,000

CHARGE FOR SERVICE - BOAT LAU 2,664 2,500 2,500 2,500
CHARGE FOR SERVICE - LOCAL ST 97,745 145,000 100,000 145,000
CHARGE FOR SERVICE - US 31 26,521 0 20,000 25,000
CHARGE FOR SERVICE - MAJOR ST 278,959 350,000 266,000 350,000
CHARGE FOR SERVICE - MARINA 12,175 12,000 12,000 12,000
CHARGE FOR SERVICE - REFUSE 159,564 168,700 168,700 182,000
CHARGE FOR SERVICE - WATER 198,573 201,100 201,000 228,000
CHARGE FOR SERVICE - SEWER 198,573 201,100 201,000 228,000
UTILITY OWNERSHIP FEE - WATER 61,674 56,500 56,500 60,000
UTILITY OWNERSHIP FEE - SEWER 125,218 122,200 122,200 122,000
INTERFUND REVENUE 1,161,666 1,267,100 1,159,900 1,364,500
TOTAL REVENUE 6,406,712 6,437,173 6,476,900 6,789,610

Expenses
Expenses
Description
General fund expenses consist of wages, benefits, operational expenses and debt service. It covers a
variety of departments including Police, Fire & EMS, Public Works, Administration, Appropriations and
Debt Service as shown below. Total expenses are budgeted at $6,889,610 an increase of 7.0%.
Appropriations
$200,200
Expenses by Area
Legislative
3% $39,056
Debt 1%
$251,063
4% DPW\Parks
$1,982,573
General & Bldgs
29%
$632,135
9%
Administrative
$1,061,817
15%
Fire Police
$1,213,884 $1,468,817
18% 21%
Expenses by Type
Debt
$246,250
4%
Operations
$2,280,144
33% Wages
$2,905,241
42%
Benefits
$1,417,910
21%

Legislative
Legislative
Description
The City Council is the governing body for the City of Manistee. The council consists of seven members
who serve two-year terms. Members are nominated by district but elected at large by voters. Elections
are nonpartisan. Terms are staggered with districts 1, 3, 5 and 7 elected one year while districts 2, 4 and
6 are elected the next year. Once seated after an election, Council elects a mayor from among their
members. The mayor is the city’s chief executive official and presides over meetings of the council. The
City has two voting precincts. The Legislative department accounts for the expenses of City Council. It
includes things such as compensation, fringes, travel & training expense, MML membership and supplies.
Infographics
The large operating spike in FY 2016 was due to the new City Manager search. The spike in 2019 and
2020 was due to the deer cull.
Legislative Expenses Legislative Trend

$70,000 Employee Operating
$60,000
$9,850 $50,000
25%
$40,000
$30,000
$29,206
75% $20,000
$10,000
$0
Employee Operating
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Budget Notes
Total costs decreased $9,900 or -20.2% from the prior year budget. Employee costs were flat. Council
previously rejected a wage increase recommended by the Compensation Commission. Operational costs
decreased because of the elimination of the deer cull.

Legislative
2019-20 2020-21 2020-21 2021-22

Dept 101 - LEGISLATIVE ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 27,052 27,052 27,052 27,052

COSTS - SOCIAL SECURITY 1,677 1,677 1,677 1,677
COSTS - MEDICARE 392 392 392 392
COSTS - WORKERS COMPENSATION 62 85 85 85
EMPLOYEE COSTS 29,183 29,206 29,206 29,206
SUPPLIES - OPERATING 768 1,200 1,200 1,600

PROFESSIONAL SERVICES 9,981 10,000 10,000 0
TRAVEL & TRAINING 285 3,000 1,200 2,500
MEMBERSHIPS & DUES 5,428 5,550 5,550 5,750
OPERATING COSTS 16,462 19,750 17,950 9,850
TOTAL LEGISLATIVE 45,645 48,956 47,156 39,056

Manager
Manager
Description
Thad Taylor is the City Manager for the City of Manistee.
He has been with the City for 5 years. Thad has announced
his retirement effective July 2, 2021. A search for a new
City Manager is underway.
The City Manager is the chief administrative officer of the

City and is appointed by City Council. The City Manager is
primarily responsible for the efficient administration of all
City departments; the enforcement of all City laws and
ordinances; the appointment of certain City department heads, with the consent of City Council; to fully
advise the Council on policies, affairs, financial conditions and the needs of the City; the enforcement of
any franchises, contracts or agreements; and the recommendation and administration of an annual City
budget.
The City Manager maintains a system of accounts which conform to a uniform system required by law,
the City Council and generally accepted principles and procedures of government accounting. In addition
to this the City Manager performs other duties as may be prescribed by City Charter, City Ordinances or
City Council.
Thad Taylor
City Manager
Kelly McColl
Executive Secretary
Mike Szokola George Saylor Shawn Middleton

Josh Glass Mark Cameron Jeff Mikula Ed Bradford Heather Pefley
Planning & Zoning Attorney Engineer
Police Chief Fire Chief Public Works Director Chief Financial Officer City Clerk
Manistee County Mika Myers Spicer Group
Infographics
The spike in employee costs in FY 2015 was due to the replacement of the City Manager and related
severance costs.
$10,213 Manager Expenses Manager Trend
4%
$400,000
Employee Operating
$350,000
$300,000
$250,000
$200,000
$150,000
$245,368
96% $100,000
$50,000
$0
Employee Operating 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Manager
Budget Notes
Total costs increased $30,309 or 13.7% from the prior year budget. Employee costs increased due to
accrued benefit payout and benefit assumptions for the new City Manager, along with normal wage and
benefit increases. Operational costs decreased due to assumptions about the new City Manager’s needs.
Dept 172 - MANAGER 2019-20 2020-21 2020-21 2021-22

ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 165,236 161,590 161,590 156,815

COSTS - SUTA 16 11 410 95
COSTS - MEDICARE 2,787 2,427 2,427 2,597
COSTS - IN LIEU OF BC/BS 6,464 8,823 9,600 4,800
WAGES - OVERTIME 0 500 500 500
WAGES - PHYSICAL FITNESS 500 500 500 1,000
COSTS - MERS CONTRIBUTION 12,672 19,853 19,853 23,589
COSTS - HEALTH INSURANCE 6,431 0 0 15,636
COSTS - HSA CONTRIBUTION 3,000 0 0 3,000
COSTS - DENTAL INSURANCE 930 659 0 775
COSTS - VISION / ANCILLIARY 162 119 0 209
COSTS - RETIREE HEALTH STIPEND 1,250 3,000 3,000 0
COSTS - VEHICLE ALLOWANCE 4,400 4,800 4,800 4,800
COSTS - LIFE INSURANCE 563 575 575 543
WAGES - HOL/VAC/SICK SELLBACK 11,810 0 0 16,000
EMPLOYEE COSTS 228,931 213,965 214,363 242,179

SUBSCRIPTIONS & PUBLICATIONS 205 225 150 150
PROFESSIONAL & CONSULTING SER 0 250 0 250
TRAVEL & TRAINING 1,003 1,000 100 1,500
MEMBERSHIPS & DUES 475 330 305 1,250
REPAIRS/MAINT - EQUIPMENT 0 0 0 0
SOFTWARE AGREE / COPIER MAINT 1,562 1,830 1,830 1,830
LEASE PURCHASE 1,983 1,983 1,983 1,983
CAPITAL OUTLAY 780 500 0 1,000
OPERATING COSTS 6,999 7,118 5,668 9,213
TOTAL MANAGER 235,930 221,083 220,031 251,392

Administrative Services: Finance & Treasury
Finance
Description
The Finance & Treasury Department is part of the larger
Administrative Services Department. The Administrative
Services Department is overseen by Edward Bradford who
is the City’s Chief Financial Officer, serving as both Finance
Director and Treasurer. He has been with the City for 19
years and is responsible for all financial activities in the
City, with three main areas: finance, treasury, and
information technology.
The main activities of the department include:
Receiving all City revenue Preparing the annual City budget

Paying all City bills Serving as Chief Technology Officer
Investing all City funds Managing City Assessor contract
Maintaining City’s accounting records City liaison to Ramsdell Theatre
Managing the annual City audit Brownfield Redevelopment Authority Admin
Ed Bradford
Chief Financial Officer
Heather Pefley Lora Laurain Molly Whetstone Caleb Eifert

Angela Rabb Kali Owens Mark Hansen
City Clerk \ Accounts Deputy Clerk Contractual Assessor Contractual IT
Deputy FD\Treas Utility Billing\AR Facility Manager
Payable Payroll\Benefits (Great Lakes Assessing) (IT Right)
Infographics
A multiyear restructuring in the Finance & Treasury department was completed in 2018, resulting in
the organizational structure shown in the chart.
Finance Expenses Finance Trend
400,000 Employee Operating
350,000
60,510
16% 300,000
250,000
200,000
150,000
307,042
84% 100,000
50,000
-

Administrative Services: Finance & Treasury
Budget Notes
Total costs increased $15,458 or 4.4% from the prior year budget. Employee costs increased due to
normal wage and benefit adjustments and higher MERS contribution. Operational costs increased
primarily due inflationary or contractual increases and the purchase of a new computer. Approximately
70% of the department’s operational budget is non-discretionary, through either mandatory contractual
professional service, such as the annual audit or software maintenance agreements.
2019-20 2020-21 2020-21 2021-22

Dept 253 - FINANCE / TREASURER ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 207,501 216,207 216,207 224,403

COSTS - SUTA 28 16 610 143
COSTS - MEDICARE 3,067 3,164 3,164 3,283
COSTS - IN LIEU OF BC/BS 2,400 0 0 0
WAGES - PHYSICAL FITNESS 0 1,500 500 1,500
COSTS - ICMA CONTRIBUTION 2,400 4,184 4,184 4,417
COSTS - HEALTH INSURANCE 21,447 24,367 23,960 25,867
COSTS - HSA CONTRIBUTION 5,500 6,000 6,000 6,000
COSTS - DENTAL INSURANCE 1,205 1,372 1,300 1,292
COSTS - RETIREE HEALTH CARE 52 0 0 0
COSTS - WORKERS
COMPENSATION 918 979 979 1,022
EMPLOYEE COSTS 275,499 292,659 292,074 307,042
SUPPLIES - OPERATING 4,955 5,000 4,500 5,000

SUBSCRIPTIONS & PUBLICATIONS 1,479 1,600 1,600 1,650
PROFESSIONAL & CONSULTING SER 27,759 31,900 31,700 32,200
PRINTING & PUBLISHING 953 750 600 900
TRAVEL & TRAINING 7,523 6,300 3,000 6,000
MEMBERSHIPS & DUES 805 980 960 960
LEASE PURCHASE 0 0 0 0
CAPITAL OUTLAY 2,908 1,000 1,000 1,600
OPERATING COSTS 56,127 58,935 54,765 60,010
TOTAL FINANCE / TREASURER 331,626 351,594 346,839 367,052

Administrative Services: Clerk & Elections
Clerk & Elections
Description
Heather Pefley is the City Clerk for the City of Manistee. She has been
with the City for 20 years.
The office of City Clerk is staffed by two full-time people; Heather Pefley
and Deputy Clerk / Payroll Lora Laurain. The office also periodically
employs 10-20 temporary workers as election inspectors. The office is a
division of the Administrative Services department and shares staff and
duties with the Finance & Treasury department. Its responsibilities
include:
• Preparation of Council Minutes

• Publishing ordinances and board vacancies Heather Pefley
• Maintaining voter registration records City Clerk
• Management of elections
• Business registrations
• Maintains Codified Ordinances
• Payroll & Employee Benefits
• Banner permits Lora Laurain
Election Workers
• Records retention coordinator Deputy Clerk\Payroll
• Accounts payable
• Retiree health insurance
• Marihuana licenses/permits
Infographics
A multi-year restructuring in the Clerk department was completed in 2018, resulting in the
organizational structure shown in the chart.
Expenses Clerk Trend

250,000
Employee Operating
27,917 200,000
13%
150,000
100,000
185,226
87%
50,000
-

Budget Notes
Total costs increased $18,466 or 9.5% from the prior year budget. Employee costs increased due to wage
and benefit adjustments, and higher MERS contribution. Operational costs decreased due to lower
operating supplies.
Elections are now required to be reported separately by the State as part of its revamping of the official
chart of accounts. The budget decreased $697 or -3.9% from the prior year due to the number of
elections and changes in election law.
2019-20 2020-21 2020-21 2021-22

Dept 215 - CLERK ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 109,857 118,039 118,039 130,915
WAGES - PART-TIME 0 0 0 0
COSTS - SUTA 11 11 410 95
COSTS - MEDICARE 1,765 1,726 1,726 1,913
WAGES-PHYSICAL FITNESS 0 500 0 500
COSTS - HEALTH INSURANCE 0 0 0 0
COSTS - HSA CONTRIBUTION 0 0 0 0
COSTS - RETIREE HEALTH STIPEND 3,000 3,000 3,000 3,000
WAGES - HOL/VAC/SICK SELLBACK 0 0 0 0
EMPLOYEE COSTS 153,755 166,505 166,404 185,226

PRINTING & PUBLISHING 5,650 5,200 5,200 5,200
TRAVEL & TRAINING 2,985 4,750 4,750 4,750
LEASE PURCHASE 3,381 3,382 3,382 3,382
CAPITAL OUTLAY 1,585 0 0 0
OPERATING COSTS 27,545 28,172 28,018 27,917
TOTAL CLERK 181,300 194,677 194,422 213,143

2019-20 2020-21 2020-21 2021-22

Dept 262 - ELECTIONS ACTIVITY BUDGET PROJECTED BUDGET
WAGES - PART-TIME 4,168 9,102 9,102 6,656

COSTS - SOCIAL SECURITY 12 0 20 0
PROFESSIONAL & CONSULTING SER 781 3,240 3,015 4,050
TOTAL ELECTIONS 21,714 17,833 17,633 17,136

Administrative Services: Assessing & Board of Review
Assessor & Board of Review
Description
Molly Whetstone of Great Lakes Assessing, Inc. is the
City Assessor. She and her company have provided
Assessing services to the City since 2016. Their
current contract expires in June 2021.
The Assessor is responsible for keeping the records for all real and personal
property in the City. Real property is all land and improvements. Personal Ed Bradford
property includes furniture, fixtures, machinery and equipment which are Chief Financial Officer
generally owned by commercial and industrial businesses. An assessment roll
is prepared on an annual basis. December 31 is Tax Day for the following year's
taxes. The assessment roll is completed and certified by the first Monday in
March.
Molly Whetstone
Contract Assessor
Upon completion of the assessment roll taxpayers will be mailed a notice of (Great Lakes Assessing)
assessment change. The notice is mailed 10 days before the meeting of the
Board of Review. The Board meets to hear appeals the second Monday in
March. If you suspect an error, you are entitled to appeal. If you miss the
opportunity to appeal to the Board of Review, you will be limited in your ability to further appeal to the
Michigan Tax Tribunal. Resident and non-resident taxpayers may file appeals through a letter.
Clerical errors, mutual mistakes of fact, homestead exemption and poverty exemption appeals are heard
at the July and December Boards of Review. The July Board of Review is generally held on the Tuesday
following the third Monday of the month. The December Board of Review is generally held on the
Tuesday following the second Monday of the month.
The state equalized value on your tax bill is 50% of the true cash or fair market value. Taxes are based
on taxable value, not state equalized value. Proposal A was passed by the electorate in 1994 and limits
increases in taxable value to 5% or the rate of inflation, whichever is less. New construction and
equipment are added to the tax roll at 50% of the current true cash value.
New home or business buyers will experience the taxable value being raised to the level of the state
equalized value the year following their purchase of real estate. The cap implemented by Proposal A will
then begin again in the second year following purchase and continue until the property sells, not
including new construction and improvements.
The actual taxes you pay are a function of the millage rate and the taxable value (as found on the
assessment roll). The City of Manistee has a summer and winter tax bill. The taxing jurisdictions are
Manistee County, the City of Manistee, Manistee Area Public Schools, Manistee Intermediate Schools,
West Shore Community College, and the State of Michigan (receives the State Education Tax).
The City Assessor administers principal residence exemptions in conjunction with the State of Michigan.
Homeowners are allowed one exemption from the 18 mills of school operating tax on their principal
residence. The Assessor also administers poverty exemptions.
Infographics
Assessing costs fell sharply due to reducing headcount in 2011 and ultimately outsourcing the
assessing function in 2016. Since then, they have gradually increased along with inflation.
Assessor Expenses Assessor Trend

140,000
Employee Operating
120,000
11,794
11%
100,000
80,000
60,000
91,937
40,000
89%
20,000
-
Budget Notes
Total costs increased $3,937 or 3.9% from the prior year budget. Employee costs increased due to higher
MERS contribution. Operational costs increased due to the assessing contract. The Board of Review
budget decreased $240 or -8.0% due to lower printing & publishing costs.
2019-20 2020-21 2020-21 2021-22

Dept 257 - ASSESSOR ACTIVITY BUDGET PROJECTED BUDGET

EMPLOYEE COSTS 8,448 9,926 9,926 11,794
SUPPLIES - OPERATING 271 400 300 300

CAPITAL OUTLAY 1,102 0 0 0
OPERATING COSTS 84,924 89,868 87,768 91,937
TOTAL ASSESSOR 93,372 99,794 97,694 103,731

2019-20 2020-21 2020-21 2021-22

Dept 247 - BOARD OF REVIEW ACTIVITY BUDGET PROJECTED BUDGET
WAGES - PART-TIME 1,200 2,000 1,500 2,000

COSTS - SOCIAL SECURITY 74 155 110 124
EMPLOYEE COSTS 1,296 2,202 1,645 2,162

TRAVEL & TRAINING 80 300 300 300
OPERATING COSTS 172 800 450 600
TOTAL BOARD OF REVIEW 1,468 3,002 2,095 2,762

Administrative Services: City Hall
City Hall
Description
This fund accounts for the expenses associated with the
ongoing operation of City Hall, the facility manager, and
major repair & maintenance expenses at the Ramsdell
Theatre.
Infographics
In FY 2017, Facility Manager Mark Hansen’s wages and
benefits were moved to this department from the
Community Development department as part of outsourcing the building inspection function and the
creation of the Administrative Services department. The large increase in operating costs in FY 2018
were the result of replacing the boilers in City Hall. The increase in FY 2019 is due to a water leak that
caused damage in the Police Department.
Building Expenses Building Trend

$200,000
$180,000 Employee Operating
$160,000
$140,000
$89,900 $120,000
50% $91,715 $100,000
50% $80,000
$60,000
$40,000
$20,000
$0
Budget Notes
Total costs increased $8,149 or 4.7%. from the prior year budget. Employee costs increased by $3,559
or 4.0% due to normal wage and benefit adjustments and higher MERS contribution. Operational costs
increased $4,590 or 5.4% from the prior year budget primarily due to higher communication costs and
capital outlay, offset partially by lower repairs and maintenance costs.

Administrative Services: City Hall
2019-20 2020-21 2020-21 2021-22

Dept 265 - CITY HALL ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 53,484 56,923 56,923 58,062

COSTS - SUTA 5 5 200 48
WAGES - OVERTIME 39 500 500 1,000
COSTS - VEHICLE ALLOWANCE 2,750 3,000 3,000 3,000
COSTS - WORKERS COMPENSATION 2,387 2,554 2,554 2,679
EMPLOYEE COSTS 81,791 88,156 88,151 91,715

CONTRACTUAL SERVICE 0 0 0 1,000
COMMUNICATIONS - PHONE 6,504 15,000 18,000 21,600
UTILITIES - WATER 2,885 2,950 2,950 3,000
UTILITIES - ELECTRIC 22,972 25,000 23,000 24,000
UTILITIES - NATURAL GAS 3,875 4,000 4,000 4,000
REPAIRS/MAINT - BUILDINGS/LAN 36,859 22,910 21,910 21,000
REPAIRS/MAINT - EQUIPMENT 0 1,500 1,500 1,500
SOFTWARE AGREE / COPIER MAINT (145) 150 150 150
CAPITAL OUTLAY 4,217 1,500 1,500 2,500
OPERATING COSTS 86,132 84,310 83,160 88,900
TOTAL CITY HALL 167,923 172,466 171,311 180,615

Planning & Zoning
Planning & Zoning
Description
Mike Szokola, Manistee County Planner, serves as the City’s
planner, as well as staff liaison to the Planning Commission,
Historic District Commission and Zoning Board of Appeals. The
City outsourced these functions in 2018 after the retirement of
the Planning & Zoning Director.
Mike will also serve as the point person for the

Redevelopment Ready Communities Program.
In 2017 the City received the distinction of
becoming the tenth community in the State of
Michigan to receive certification (the second
community in Northern Michigan). This certification demonstrates that the City of
Manistee is ready for development and uses best practices when working with developers.
The main activities of the department include: Thad Taylor

• Working with Developers on projects City Manager
• Processing requests for the Planning Commission
• Processing requests for the Historic District Commission
• Processing requests for the Zoning Board of Appeals
• Issuing Permits
Mike Szokola
• Maintaining the Zoning Ordinance Planning & Zoning
Manistee County
Infographics
Planning & Zoning (formerly Community Development) costs have fallen sharply due to past
restructuring and outsourcing the function to Manistee County.
Planning & Zoning Expenses Planning & Zoning Trend

300,000
Employee Operating
250,000
20,692
20%
200,000
150,000
81,220 100,000
80%
50,000
-

Planning & Zoning
Budget Notes
Total costs increased $5,551 or 5.8% from the prior year budget. Employee costs increased $2,802 or
15.7% due to higher MERS contributions. Operational costs increased $2,749 or 3.5% primarily due to
contractual increases. The Historic District Commission, Planning Commission and Zoning Board of
Appeals are also included in this budget.
2019-20 2020-21 2020-21 2021-22

Dept 701 - PLANNING & ZONING ACTIVITY BUDGET PROJECTED BUDGET
COSTS - RETIREE HEALTHCARE 2,983 3,000 3,000 3,000
EMPLOYEE COSTS 15,655 17,890 17,890 20,692
PROFESSIONAL & CONSULTING SERVICES 71,400 72,471 72,471 75,420
HISTORIC DISTRICT COMMISSION 191 750 250 750
PLANNING COMMISSION 1,606 2,200 1,000 2,000
ZONING BOARD OF APPEALS 350 750 750 750
PRINTING & PUBLISHING 512 600 1,000 1,000
OPERATING COSTS 76,025 78,471 77,171 81,220
TOTAL PLANNING & ZONING 91,680 96,361 95,061 101,912

Police
Police
Description
Josh Glass is the Chief of Police for the City of Manistee. He has been
with the City for 17 years and was appointed police chief in July of
2020 after the departure of Public Safety Director Tim Kozal.
The Police Department currently has 13 sworn officers; including a

chief, detective sergeant, and two patrol sergeants. The officers are
unionized and represented by the POAM. The sergeants are also
unionized and represented by the COAM. There is also a part-time
office support staff person. The department averages approximately
5,000 dispatched calls for service annually.
Currently there are 5 patrol cars which patrol 50 miles of City streets.
The department also has a car for the detective sergeant to utilize.
Officers are expected to conduct foot patrols daily throughout the
downtown area, the Riverwalk, and local beaches. A Polaris Ranger
beach vehicle allows officers to patrol the beaches more effectively
and respond to emergencies more quickly. Officers also assist the
fire department at structure fires. The Police Department is also
responsible for blight enforcement.
Josh Glass
Police Chief
Bridget Guillen
Confidential Secretary
Sergeant Detective Sergeant Sergeant

Doug Vansickle Kirsten Goodspeed Steve Schmeling
Officers Officers

Police
Infographics
Police costs have risen steadily over the past ten years. The trend accelerated with the restoration of the
13th officer in 2020.
Police Expenses Police Trend

138,585
1,600,000
9%
Employee Operating
1,400,000
1,200,000
1,000,000
800,000
600,000
1,330,232
91% 400,000
200,000
-
Years 2019 2020

Dispatched complaints 5095 4893
Self Initiated (traffic stops, complaints, etc.) 3388 2937
Written Complaints 1617 1184
Tickets 443 160
Arrests 494 310
Accidents 264 132
Budget Notes
Total costs increased $87,472 or 6.5% from the prior year budget. Employee costs increased by $79,287
or 6.4%. This cost increase is driven by normal wage and benefit adjustments and sharply higher MERS
contributions; as well as costs mandated by the recent Act 312 arbitration ruling. Operational costs
increased $8,185 or 6.9%. Increases were budgeted in several accounts, but the primary cost driver was
expenses relating to the accreditation process for the department, including software. Some body worn
cameras are also included in the budget, although these funds may not need to be spent if a local
revenue sharing grant can be obtained.

Police
2019-20 2020-21 2020-21 2021-22

Dept 301 - POLICE ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 655,699 743,986 706,986 744,264

WAGES - PART-TIME 22,937 26,078 26,550 28,535
COSTS - SUTA 69 73 2,810 665
COSTS - SOCIAL SECURITY 2,845 1,617 217 1,769
COSTS - MEDICARE 11,975 12,077 12,077 12,457
WAGES - OVERTIME 57,993 40,000 68,660 40,000
WAGES - OT UNDERAGE DRINKING GRANT 0 0 0 0
WAGES - PHYSICAL FITNESS 4,900 6,250 6,250 6,500
COSTS - VISION / ANCILLIARY 1,471 1,822 1,609 1,388
COSTS - UNIFORM/CLEANING ALLO 5,280 8,950 8,950 8,950
COSTS - VEHICLE ALLOWANCE 0 0 2,400 4,800
COSTS - LIFE INSURANCE 1,989 2,092 2,092 2,349
WAGES - HOL/VAC/SICK SELLBACK 37,767 30,000 55,000 35,000
EMPLOYEE COSTS 1,142,490 1,235,499 1,237,810 1,314,786

VEHICLE GAS / DIESEL 15,520 18,100 16,000 18,100
EDUCATION/TUITION REIMBURSE. 0 0 0 2,500
TRAVEL & TRAINING 6,891 6,050 6,050 6,550
MEMBERSHIPS & DUES 465 860 860 3,015
REPAIRS/MAINT - BUILDINGS/LAN 0 0 0 0
REPAIRS/MAINT - EQUIPMENT 426 1,000 3,500 1,000
REPAIRS/MAINT - VEHICLES 10,261 5,000 8,500 5,500
MOTOR POOL 48,000 52,500 52,500 55,000
CAPITAL OUTLAY 4,068 17,000 17,000 9,500
OPERATING COSTS 104,420 117,900 126,220 126,085
TOTAL POLICE 1,246,910 1,353,399 1,364,030 1,440,871

Fire & EMS
Fire & EMS
Description
Mark Cameron is the Fire Chief for the City of Manistee. He was
appointed to this position in July 2020 when the police and fire
departments were restructured under a two-chief model after
the departure of the previous public safety director.
The Fire Department has a budgeted staff of 8 full time

employees: seven firefighters and one Chief. The department
provides the City with fire protection and medical response
services at the advanced life support transport level.
In addition, firefighters conduct an active fire prevention

program, conduct fire prevention and preplanning inspections,
inspect the City’s fire hydrants, and maintain the City’s 132 year-
old fire station. All firefighters are specially trained for cold water
and confined space rescue, and some hazmat operations.
On June 17, 2019, The Manistee Fire Station, which opened in

1889, was awarded the title for Oldest Continuously Manned
Operating Fire Station by Guinness World Records.
Mark Cameron
Fire Chief
Brent Haskin Heath Darling John Peddie

Captain Captain Captain
Firefighters Firefighters Firefighters

Fire & EMS
Infographics
Fire Department costs have risen steadily over the last decade. Response times are exceptional.
Fire & EMS Expenses Fire & EMS Trend

1,400,000
Employee Operating
1,200,000
270,557
22% 1,000,000
800,000
600,000
943,327
78% 400,000
200,000
-
Budget Notes
3.9% due to normal wage and benefit adjustment and sharply higher MERS contributions. Operational
costs increased by $21,577 or 9.0% due to higher medical supplies, higher repairs and anticipated
paramedic training for a new hire.
2019-20 2020-21 2020-21 2021-22

Dept 336 - FIRE ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 451,192 486,771 486,771 467,458

WAGES - PART-TIME 0 0 0 0
COSTS - SUTA 69 46 1,610 380
COSTS - SOCIAL SECURITY 1,396 0 0 0
COSTS - MEDICARE 8,170 7,827 7,827 7,821
Fire & EMS
COSTS - IN LIEU OF BC/BS 10,750 6,682 0 0
WAGES - OVERTIME 46,058 36,000 36,000 31,500
WAGES - OT FF PA 604 5,640 5,600 5,600 4,900
COSTS - FOOD ALLOWANCE 740 6,560 6,560 5,740
COSTS - VEHICLE ALLOWANCE 0 0 2,000 4,800
EMPLOYEE COSTS 884,600 907,599 925,051 943,327

SUPPLIES - MEDICAL 22,615 18,400 20,000 22,600
FIRE PREVENTION 1,394 700 0 1,000
SUBSCRIPTIONS & PUBLICATIONS 0 0 1,400 1,400
CONTRACTUAL SERVICE 0 0 0 0
EDUCATION/TUITION REIMBURSE. 4,984 5,000 5,000 5,000
TRAVEL & TRAINING 11,913 9,000 7,500 19,200
MEMBERSHIPS & DUES 610 670 1,600 1,550
UTILITIES - WATER 2,540 1,700 1,600 2,000
REPAIRS/MAINT - EQUIPMENT 10,125 7,760 7,600 7,500
HYDRANT RENTAL 21,600 21,600 21,600 21,600
MUTUAL AID 0 0 0 500
MOTOR POOL 76,000 80,000 80,000 84,000
CAPITAL OUTLAY 5,650 23,300 20,000 19,100
OPERATING COSTS 229,958 242,980 249,050 264,757
TOTAL FIRE 1,114,558 1,150,579 1,174,101 1,208,084

Public Works
Public Works
Description
Jeff Mikula is the Public Works Director. He has been with
the City for 8 years. He oversees all aspects of the Public
Works, Parks and Utility operations, and is the primary
project manager for City infrastructure projects.
The Department of Public Works (including the Parks

department) is the workhorse of the City. It provides such
services as snow plowing, sanding, street repairs, traffic
control, chipping, leaf pickup, Christmas tree pickup,
maintaining parks, flooding ice rink, putting up Christmas
decorations, making compost, fleet maintenance, beach grooming and public area maintenance, and
operating the Maple and US-31 bridges to name just a few. The DPW also assists other organizations as
necessary, especially during the City’s festivals and peak summer season.
Jeff Mikula
Public Works Director
Kathie Boyle
Executive Assistant
Brandon Prince Mickey McCann

DPW Leadman Parks Leadman
DPW Employees Parks Employees

Public Works
Infographics
Employee costs increased in 2018 due to the hiring of two new full-time employees to man the Maple
St. bridge. All of their time spent working on the bridge is offset by MDOT reimbursement.
Public Works Expenses Public Works Trend

1,800,000
1,600,000 Employee Operating
323,150 1,400,000
21% 1,200,000
1,000,000
800,000
1,227,767
79% 600,000
400,000
200,000
-
Budget Notes
4.7% due to normal wage and benefit adjustment and sharply higher MERS contributions. Operational
costs increased $15,170 or 5.1% due to increased environmental consulting to close out our
underground storage tank site and increased motor pool contributions.
2019-20 2020-21 2020-21 2021-22

441 - PUBLIC WORKS ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 618,900 683,978 650,000 706,706

WAGES - PART-TIME 14,190 18,450 8,000 18,450
COSTS - SUTA 112 87 2,810 757
COSTS - MEDICARE 10,707 11,278 11,278 11,613
WAGES - OVERTIME 55,336 32,500 25,000 32,500
WAGES - 2E STANDBY PAY 16,404 17,334 17,334 17,727
WAGES-PHYSICAL FITNESS 500 1,500 1,500 1,500
COSTS - ICMA CONTRIBUTION 2,959 2,916 2,950 2,978
COSTS - RETIREE HEALTH CARE 6,259 3,000 3,000 0
Public Works
EMPLOYEE COSTS 1,095,747 1,172,590 1,108,959 1,227,767

COMMUNICATIONS - PHONE 400 500 500 500
TREE COMMISSION 0 500 0 500
PRINTING & PUBLISHING 2,037 1,500 500 1,500
UTILITIES - WATER 770 1,200 1,200 1,250
CHRISTMAS DECORATIONS 2,682 5,000 11,700 4,000
MOTOR POOL 90,000 92,500 92,500 97,000
LEASE PURCHASE 0 1,200 1,200 1,250
CAPITAL OUTLAY 2,120 1,000 0 2,000
OPERATING COSTS 293,667 298,980 303,000 314,150
TOTAL PUBLIC WORKS 1,389,414 1,471,570 1,411,959 1,541,917

Parks
Parks
Description
The Parks department is responsible for the maintenance
of all of the City’s parks, beaches and most public
restrooms. The 16 parks in the City comprise 183 acres,
1.5 miles of Lake Michigan beaches and 3.5 miles of
bikeways\walkways. The Parks department employs
seasonal help to augment the full-time workforce and
keep the Parks looking good and the amenities clean and
maintained.
Jeff Mikula
Kathie Boyle
Executive Assistant
Brandon Prince Mickey McCann

DPW Leadman Parks Leadman
DPW Employees Parks Employees

Parks
Infographics
The spike in operating costs for FY 2016 and 2020 was due to emergency Riverwalk repairs. The bump
up in FY 2019 was due to installing electronic locks on the Parks restrooms.
Parks Expenses Parks Trend

$500,000
Employee Operating
$450,000
$400,000
$350,000
$187,800 $300,000
44% $250,000
$243,856
56% $200,000
$150,000
$100,000
$50,000
$0
Budget Notes
5.9% due to normal wage and benefit adjustments and higher MERS contribution. Operational costs
decreased $4,800 or -2.6% due to lower capital outlay.

Parks
2019-20 2020-21 2020-21 2021-22

Dept 751 - PARKS & RECREATION ACTIVITY BUDGET PROJECTED BUDGET
WAGES - FULL TIME 78,600 95,618 85,000 97,781

WAGES - PART-TIME 51,290 57,400 57,400 57,400
COSTS - SUTA 114 45 850 382
COSTS - MEDICARE 2,164 2,393 2,393 2,527
WAGES - OVERTIME 12,332 10,000 8,000 10,000
WAGES - 2E STANDBY PAY 0 500 500 500
WAGES - PHYSICAL FITNESS 0 500 500 500
COSTS - UNIFORM/CLEANING ALLO 740 1,250 1,250 1,250
COSTS - RETIREE HEALTH CARE 2,978 1,500 1,500 0
WAGES - HOL/VAC/SICK SELLBACK 936 1,000 1,000 8,122
EMPLOYEE COSTS 201,755 230,201 218,388 243,856

COMMUNICATIONS - PHONE 962 3,000 2,000 2,000
HARBOR COMMISSION 76 100 100 100
PARKS COMMISSION 126 500 200 500
TRAVEL & TRAINING 67 1,000 250 600
UTILITIES - WATER 17,469 22,500 17,000 22,500
UTILITIES - NATURAL GAS 773 1,000 1,000 1,100
MOTOR POOL 19,000 20,000 19,500 20,000
CAPITAL OUTLAY 4,000 9,000 5,000 5,000
OPERATING COSTS 267,202 182,600 164,200 177,800
TOTAL PARKS & RECREATION 468,957 412,801 382,588 421,656

General Operating
General Operating
Description
The General Operating department accounts for those items that are
City-wide in nature, or ones that do not fit within an existing department.
Examples are streetlights, information technology support, insurance,
postage, attorney & engineer. The attorney and engineer accounts
moved to this department as a result of the new State chart of accounts.
George Saylor, of Mika Meyers Beckett & Jones, is the City Attorney. The
firm has been the City’s legal counsel since 1993. Their firm works closely
with City staff on a variety of legal issues such as labor, tax appeals and
environmental matters; and also prepares or reviews all City contracts.
The Spicer Group has been the City’s Engineer of Record since 2013.
Shawn Middleton is the primary contact for the City. Spicer assists in
many of the daily activities of the City; answering technical questions and
working across departments to address their engineering needs.
Infographics
General costs are more volatile than typical departments because of
the nature of the expenses recorded here.
General Trend
700,000
600,000
500,000
400,000
300,000
200,000
100,000
-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Budget Notes
Total costs increased by $104,012 or 23.4% from the prior year budget. Several items had changes.
Contractual services increased because of the inclusion of additional funds to demo blighted structures.
Streetlight costs decreased based on the prior year’s bills and LED savings. Computer & hardware costs
increased because of the need to replace some of our aging wireless network infrastructure.
As discussed in the Motor Pool Sustainability Issue Page, the budget\projections include an investment
of $100,000 each year over FY2021, FY2022 and FY2023 to help stabilize the Motor Pool Fund

General Operating
2019-20 2020-21 2020-21 2021-22

Dept 275 - GENERAL ACTIVITY BUDGET PROJECTED BUDGET

ATTORNEY 55,372 56,000 56,000 56,000
ATTORNEY - LABOR 17,394 20,000 15,000 18,000
ATTORNEY - TAX APPEALS 0 4,000 0 3,000
ATTORNEY - PROSECUTING ATTY 13,018 13,142 12,000 13,550
ATTORNEY - LITIGATION\PROJECTS 1,892 4,000 2,000 3,000
CONTRACTUAL SERVICE 0 12,000 12,000 30,000
POSTAGE 29,862 27,000 27,000 27,000
COMMUNICATIONS - DATA\INTERNE 4,994 5,000 5,000 5,000
COMMUNICATIONS - CELL PHONES 11,035 12,000 12,000 12,500
UTILITIES - ELECTRIC STR LIGH 109,352 125,000 110,000 112,000
SOFTWARE AGREEMENTS / COPIER
MAINT 1,496 1,450 1,500 1,500
INSURANCE 85,950 90,000 92,000 92,000
RENT 1,684 1,700 1,700 1,750
ENGINEERING SERVICES 16,684 18,000 14,400 14,400
MISCELLANEOUS EXPENSE 1,026 0 200 500
BAD DEBT 0 500 500 500
BANK CHARGES 3,518 5,000 5,000 5,000
REFUNDS 0 500 500 500
COMPUTER HARDWARE & SOFTWARE 6,343 6,000 10,500 8,000
TRANSFERS OUT 93,274 5,616 125,620 105,620
TOTAL GENERAL 481,278 445,008 541,620 549,020

Debt Service
Debt Service
Description
The Debt Service department accounts for 2013 City general obligation bond debt for City Hall and a
portion of the City’s 2020 Capital Improvement bond. The DDA bond was paid off in FY 2020. This
department is in lieu of a separate debt service fund. Any proposed DDA Bond will also be recorded here.
Budget Notes
Debt service costs increased by $4,813 or 2.0% compared to the prior year budget based on the bond
amortization schedule. The City Hall bond is paid off in FY2024. Deferred debt service on the 2020
Capital Improvement bond starts in FY 2025.
2019-20 2020-21 2020-21 2021-22

Dept 905 - DEBT SERVICE ACTIVITY BUDGET PROJECTED BUDGET
2010 DDA REFUNDING - PRINCIPA 135,000 0 0 0

2013 CI REFUNDING - PRINCIPAL 210,000 225,000 225,000 235,000
2020 CI - PRINCIPAL (FY 2024) 0 0
2010 DDA REFUNDING - INTEREST 2,700 0 0 0
2013 CI REFUNDING - INTEREST 25,600 21,250 21,250 16,063
2020 CI - INTEREST (FY2024) 0 0
TOTAL DEBT SERVICE 373,300 246,250 246,250 251,063

Appropriations
Appropriations
Description
The City funds a variety of different organizations which undertake public activities on the City's behalf.
Each organization is required to annually make a request for funding, unless they have an unexpired
contract. By law the City may not provide a gift or a contribution of tax dollars for any purpose. However,
the City may provide governmental services through other organizations. This distinction is important.
In order to document the public purpose being served, the City requires signed agreements that
document the public benefit being provided, when not readily apparent or already documented via
contract. The organizations that the City currently funds are listed below with a brief description of the
service they provide.
Organization Services Provided

Alternatives for Area Youth Teen Center, youth activities
Manistee Chamber of Commerce Economic development services
Manistee Area Public Schools Paine Pool Community Pool
Manistee Recreation Association Youth recreation
Manistee Saints Rietz Park ball diamond maintenance
Manistee Area Historical Museum City historian, Historical reviews
Ramsdell Regional Center for the Arts Operates City-owned Ramsdell Theatre
Budget Notes
The City Attorney has previously reviewed appropriation requests and determined that they are legal.
City Council has made some cuts to this area in past budgets. Total requests increased by $48,400 or
31.9%. All organizations, except AAY, that were cut last year requested restored funding. New requests
are for Housing North for $20,000 to help fund a multi-organizational shared position to advance and
assist with housing initiatives; and an additional $20,000 for the Chamber of Commerce to help advance
economic development. These new appropriations are proposed to be paid from the ARP Act money.
2019-20 2020-21 2020-21 2021-22

Dept 801 - APPROPRIATIONS ACTIVITY BUDGET PROJECTED BUDGET
ALTERNATIVES FOR AREA YOUTH 13,000 11,700 11,700 11,700

HOUSING NORTH 0 0 0 20,000
MANISTEE CHAMBER OF COMMERCE 20,000 20,000 20,000 40,000
MAPS PAINE POOL 40,000 40,000 40,000 40,000
MANISTEE RECREATION ASSOC. 27,000 24,300 24,300 27,000
MANISTEE SAINTS 2,000 1,800 1,800 2,000
MAN. CO. HISTORICAL MUSEUM 10,000 9,000 9,000 9,500
RAMSDELL REGIONAL CENTER FOR 50,000 45,000 45,000 50,000
TOTAL APPROPRIATIONS 162,000 151,800 151,800 200,200

Downtown Development Authority
Component Units
The City of Manistee Downtown Development Authority was originally established via ordinance passed
on January 19, 1982. On April 2, 1985, City Council approved the original Development and Tax
Increment Financing Plan and Ordinance. The plan estimated that the dissolution of the DDA would
occur on or before the year 2000 but had no firm sunset date.
On March 30, 1989 City Council amended the DDA Ordinance to accomplish three major items. First, the
ordinance adopts the Central Business District plan (part of the City’s Master Plan) as a guiding document
in the DDA’s improvement plan. Second, it permits bonding by the DDA. Third, it establishes a sunset
date for the DDA of January 1, 2009 (or if bond obligations exist, when those are paid off). The sunset
date was March 1, 2020.
On September 16, 2008, Council amended the DDA Ordinance to allow for more money to be spent on
administration in order to support the hiring of a Main Street\DDA Director.
On February 18, 2020 City Council adopted Ordinance 20-02 approving amendments to the City of
Manistee Development Plan and Tax increment Financing plan. The plan was extended for 25 years.
The DDA captures a variety of taxes to fund their operations in the proportions shown below.
DDA Capture City Refuse

$9,506
County Voted
4%
$18,434
8%
WSCC
$25,549
10%
County City Operating
Operating $146,820
$45,465 60%
18%
The DDA has prepared a narrative and budget for Council consideration. The DDA adjusted their budget
process and coordinated it with the City budget timeline this year so the DDA budget could be
incorporated in the City’s budget document.
City Council must ultimately approve the annual DDA budget.







Ramsdell Theatre
Ramsdell Theatre

Ramsdell Theatre
Description
The Ramsdell is listed on the National Register of Historic Places and serves as the cultural center of
Manistee County. It is one of the finest small theatres in the country. In the past, the volunteer, non-
profit group Ramsdell Theatre Restoration Project (“RTRP”) raised around $3,000,000 from generous
donors and various grants to renovate and restore the Theatre.
The City has also made substantial investments in the building. The failing roof and other areas of the
building envelope were addressed in the fall of 2009 at a cost of $485,000. The HVAC system was
completely replaced in the fall of 2011 at a cost of $1,260,000. Other improvements include the addition
of a projector to show live events and movies in the theatre, upgrading the sound system to stereo,
renovation of classrooms downstairs, and renovation of the green room. There are still areas of the
theatre that have not been renovated or need improvement. Ballpark estimates of work remaining to
be done are around $500,000.
The Ramsdell has operated under a number of different models, including third-party management and
operation by the City. In late 2015 a group of concerned citizens interested in the future of the Ramsdell
came together. They believed there was sufficient time, talent and opportunity in the community to
manage the Ramsdell as a non-profit organization under contract with the City. The group made a
presentation to City Council at the March 2016 work session. The City subsequently entered into an
agreement with the Ramsdell Regional Center for the Arts (“RRCA”) to manage and operate the
Ramsdell.
Execution of their plan has progressed, and the organization is making steady progress toward its
objectives. The community has stepped up and has had significant involvement and financial support.
Key to the success of the RRCA are board members that have the desire, contacts and passion to assist
the Ramsdell. Executive Director, Xavier Verna, was hired in February 2017, and has been instrumental
in guiding the organization.
Issues
There is general consensus that the Ramsdell Theatre cannot be self-supported with revenue generated
through performances and rentals. The market and venue are simply too small. The RRCA has met the
goal of reducing the recurring City operating support thru donations, sponsorships and earned revenue.
However, it is unlikely that City support will be able to be removed entirely. This is supported by the fact
that nationally, 40% to 60% of theatre revenue is from ongoing public\private support. Earned income
is not sufficient.
The current appropriation request is for $50,000, which is the same request as last year, which Council
reduced to $45,000. The RRCA Board feels that the $50,000 is the minimum sustainable level of City
support for the Ramsdell Theatre, especially given the negative impacts of the COVID-19 pandemic. This
amount constitutes about 15% of the overall RRCA budget and goes for maintenance, utilities and capital
outlay for the City-owned building.

Ramsdell Theatre
Infographics
Overall City support for the Ramsdell Theatre is down 62% since FY 2009. Operational support is down
58% since its peak. Capital support is down 100%. Debt service is down 39%.
City Support for Ramsdell Theatre

$350,000
$300,000
$250,000
$178,830 $178,830
$69,880
$200,000 $178,830 $178,830$178,830
$150,000 $145,030
$108,950$108,950$108,950
$100,000 $108,950
$34,940
$0
$50,000 $107,000$100,000$90,000
$65,000 $65,000 $60,000 $85,000 $60,000 $70,000 $60,000 $55,000 $50,000
$45,000
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Operating Capital Projects Debt Service
Budget Notes
The draft RRCA budget has been included with their appropriation request. The theatre has been shut
down a significant amount of time since March 16, 2020 due to the COVID-19 Pandemic and the budget
and cash flow are extremely tenuous.
The City operating contribution is in the Appropriation budget and the City debt service contribution for
the HVAC system is reflected in the Capital Improvement Fund.

Brownfield Redevelopment Authority
Brownfield Redevelopment Authority
Description
The City of Manistee Brownfield Redevelopment Authority (BRA) is an autonomous component unit of
the City whose board members are appointed by City Council. Chief Financial Officer Ed Bradford is the
designated Brownfield Authority Administrator. The Brownfield Authority meets as needed throughout
the year.
The BRA is responsible for overseeing the City’s brownfield initiatives, including grants, loans,
remediation, tax increment financing and coordination with developers.
The City has two active Brownfield projects: 334 River St. and South Washington Area. There will likely
be one or more significant Brownfield projects happening over the next 12-36 months.

Enterprise Funds
Enterprise Funds

Water Utility
Water Utility
Overview
The Water Utility under the direction of Public Works
Director Jeff Mikula. Jeff has been with the City for 8
years.
The Water department is responsible for water

production and treatment, monitoring, storage, testing,
system maintenance, and ensuring compliance with State
and Federal regulations. It works to ensure the highest
production and treatment standards are maintained to
protect the public health and deliver great quality water.
The Water Utility is an enterprise fund. All revenues and Jeff Mikula
expenses, capital outlays and debt service are accounted for in
one fund. Enterprise funds should be self-supporting. That is,
the users of the system should pay all the costs associated with Kathie Boyle
Executive Assistant
operating, maintaining and servicing the debt of the system. In
fact, the City is required by law and ordinance to ensure that
sufficient funds are available to provide for the operation,
Rick Mohr
maintenance and debt service of the Water Utility. Deputy Director
Utilities
The Water Utility closely coordinates with the DPW and Street
department to ensure that water mains and leads are replaced
when streets are torn up for reconstruction.
Water Sewer
Issues
The Water Utility faces several key issues over the next few
years.
1. Since the Flint water crisis, the State has instituted significant regulations to address lead in water
systems. The new requirements don’t provide financial exceptions; the City must comply. The
financial impact on our system hasn’t been overwhelming but is consuming resources and will
continue to be monitored closely.
2. Ongoing implementation and use of the Lucity asset management software. As part of the SAW
grant, the City procured and implemented advanced software to help manage our Water system
assets.
3. Various construction projects over the next three years.
4. Update the Rate Study to ensure the Water Utility continues to be stable financially.

Water Utility
5. Replace water mains in coordination with Street work as funds allow.
6. Painting projects for the Maywood and Industrial water towers.
Rates
Per the Burton rate study, water rates are budgeted to be increased 3.5%. With the increase, a 6,000
gallon per month water and sewer customer would see their bill increase by $3.15 per month or $37.80
per year. The combined monthly water & sewer bill for a 6,000 gallon per month customer would be
$93.89.
Illustrative Monthly Bill
Gallons 1000 2000 3000 4000 5000 6000
Water $8.12 $11.48 $14.84 $18.20 $21.56 $24.92
Sewer $22.92 $32.13 $41.34 $50.55 $59.76 $68.97
Total $31.04 $43.61 $56.18 $68.75 $81.32 $93.89
2020 Budget Presentation Changes

Significant changes were made in the budget presentation for FY 2020 and are continued. The City has
received USDA Rural Development (RD) loans to fund significant construction projects related to the wet
weather corrective action plan. RD requires that the utility report water and sewer activities separately
in the audit. This conflicts with our bond covenants which require us to run the system as a combined
entity.
In order to meet the RD requirements efficiently and maintain compliance with bond covenants, the City
has combined all water activities under the Water Utility and all sewer and treatment plant activities
under the Sewer Utility. By doing so, we have eliminated the admin, street sewer and general
department budgets. We have also separated out capital outlay and debt service by water and sewer.
Funds may still have to flow between water and sewer occasionally to ensure compliance with bond
covenants.

Water Utility: Revenue
Revenue
Description
Revenue is derived primarily from user rates and charges. It is also received from leasing space on water
towers, new services and capital cost recovery. Bills are issued monthly. Rates are made up of commodity
consumption charges and ready-to-serve charges based on meter size. City rate increases since 2001
have lagged the U.S. Consumer Price Index (CPI) Water & Sewerage Maintenance Series, which measures
the average national change in the cost of water and sewer service to households. The rates are
proposed to increase 3.5% in accordance with the Burton & Associates rate study recommendations.
Budget Notes
Operating revenues increased $13,389 or 0.9%. The increase was due to the 3.5% rate increase offset by
the completion of the US31 capital cost recovery charges.
2019-20 2020-21 2020-21 2021-22

Dept 000 - REVENUE ACTUAL BUDGET PROJECTED BUDGET
STATE GRANT - OTHER 99,887 0 0 0

PENALTIES 15,267 20,000 0 20,000
WATER READY TO SERVE 236,376 241,400 242,000 250,000
NEW SERVICE 0 10,000 5,000 5,000
SALES - WATER 796,591 773,700 775,000 801,000
SALES - WATER SPRINKLERS 198,681 192,900 193,000 200,000
SALES - METERS 3,454 10,000 5,000 5,000
INVESTMENT - INTEREST 1,039 2,000 200 200
RENTAL INCOME 110,841 113,931 114,000 117,000
RENTAL - HYDRANT & TUNNEL 21,600 21,600 21,600 21,600
OTHER REVENUE 8,737 4,000 3,500 4,000
REIMBURSEMENT 744 2,000 2,000 2,000
CAPITAL COST RECOVERY 23,910 19,880 20,000 0
INSURANCE SETTLEMENT 0 0 0 0
TRANSFERS IN 46,649 0 0 0
TOTAL WATER REVENUE 1,565,276 1,413,411 1,382,300 1,426,800

Water Utility: Operations
Water Operations
Description
Water operations accounts for the day-to day operations of the Water Utility. The water department is
responsible for water production and treatment, monitoring, storage, testing, system maintenance and
ensuring compliance with State and Federal regulations.
Budget Notes
Water operations increased $82,722 or 7.5%. Employee costs increased $17,592 or 4.8% due to normal
wage and benefit increases and higher MERS contributions. Operating costs increased $65,130 or 8.9%
due to higher administration and repairs and maintenance costs. Well 6 is slotted for a rehabilitation
and money is budgeted for lead service line investigation and replacement.
2019-20 2020-21 2020-21 2021-22

Dept 542 - WATER OPERATION ACTUAL BUDGET PROJECTED BUDGET
WAGES - FULL TIME 197,997 212,385 212,385 216,911

COSTS - SUTA 22 22 810 190
COSTS - MEDICARE 3,245 3,290 3,290 3,355
WAGES - OVERTIME 20,882 12,000 14,000 16,000
WAGES - 2E STANDBY PAY 15,796 18,000 18,000 18,000
COSTS - RETIREE HEALTH CARE 2,978 3,000 3,000 3,000
COSTS - RETIREE HEALTH STIPEND 0 0 0 0
WAGES - HOL/VAC/SICK SELLBACK 0 1,500 1,500 1,500
EMPLOYEE COSTS 362,150 367,278 382,770 384,870

SUPPLIES - CHEMICALS 18,272 25,650 26,000 27,000
SUPPLIES - METERS 15,204 44,000 38,000 44,000
ATTORNEY 0 0 0 0
ADMINISTRATION 198,573 201,100 210,000 228,000
LAB TESTING 2,860 12,900 11,500 11,400

Water Utility: Operations
TRAVEL & TRAINING 1,305 1,500 1,200 1,350
INSURANCE 4,907 10,000 10,000 10,000
MOTOR POOL 50,000 60,000 60,000 63,000
BANK CHARGES (30) 500 250 500
UTILITY OWNERSHIP FEE 93,446 56,500 56,500 60,000
REFUND 0 0 0 0
CAPITAL OUTLAY 12,740 13,000 8,000 6,000
TRANSFERS OUT 82,890 0 0 0
OPERATING COSTS 653,807 728,570 677,750 793,700
TOTAL WATER OPERATIONS 1,015,957 1,095,848 1,060,520 1,178,570

Water Utility: Debt Service
Debt Service
Description
Debt Service accounts for the bonded indebtedness of the Water Utility. The Water Utility has $2.7 M
of outstanding debt in three different issues.
Budget Notes
Debt service increased by $193,249 or 355.0% due to the issuance of the 2020 Capital Improvement
bond to fund water projects.
2019-20 2020-21 2020-21 2021-22

Dept 905 - DEBT SERVICE ACTUAL BUDGET PROJECTED BUDGET
BANK CHARGES 250 0 0 0

ACCRUED INTEREST EXPENSE (500) 1,000 1,000 3,000
BOND ISSUANCE EXPENSE 0 0 57,677 0
PRINCIPAL PORTION OF PAYMENTS 40,000 41,870 41,870 151,389
2010 DWRF BOND INTEREST 7,375 6,875 6,875 6,313
2011 DWRF BOND INTEREST 7,314 6,814 6,814 6,314
2020 CI INTEREST 0 33,360 53,906 80,672

Water Utility: Capital Outlay
Capital Outlay
Description
Capital outlay accounts for the proposed capital outlays for the Water Utility. Capital outlays are projects
that have a cost of greater than $5,000 and are for new assets or investments that extend the useful life
of existing assets. Ideally, annual investment in capital assets roughly equals annual depreciation. This
means that assets are being replaced at the same rate as they are wearing out. However, water assets
are very long-lived, and their life often exceeds the length they are depreciated over. On a more practical
note, rates would have to be much higher to achieve this goal. Nonetheless, the rate study has set us on
a path to adequately fund needed capital replacements.
Budget Notes
The budget anticipates no cash funded capital outlay. The 2020 Capital Improvement bond will fund a
number of projects over $2,000,000 of capital improvements over a three-year period.
2019-20 2020-21 2020-21 2021-22

Dept 903 - CAPITAL OUTLAY WATER ACTUAL BUDGET PROJECTED BUDGET
BOND PROCEEDS 0 (518,093) (783,093)

BOND CAPITAL PROJECTS 0 518,093 783,093
CAPITAL OUTLAY 54,282 80,000 155,000 0
TOTAL CAPITAL OUTLAY 54,282 80,000 155,000 0
TOTAL EXPENSES 1,124,678 1,265,767 1,383,662 1,426,258
Results
Description
The Water Utility budget anticipates a near break-even result and adequate ending cash position.
TOTAL EXPENSES 1,124,678 1,265,767 1,383,662 1,426,258
TOTAL WATER FUND 440,598 147,644 (1,362) 542
Beginning Cash 535,458 641,272
Ending Cash 535,458 641,272 641,814

Sewer Utility
Sewer Utility
Overview
The Sewer Utility is responsible for treating and disposal of the City wastewater stream, operating lift
stations, testing, system maintenance, compliance with the City’s NPDES permit and Local, State and
Federal regulations, maintaining sewer infrastructure, and monitoring. It works to ensure the highest
collection and treatment standards so that the public health and environment is protected.
The Sewer Utility has significant debt from funding State-mandated combined sewer separation projects.
All the sewer districts have been completed. Remaining work includes closing off the last outfall as
required by the new NPDES permit, constructing a holding facility for wet weather flows and addressing
inflow and\or infiltration issues. The City has started this work.
Issues
The Sewer Utility faces several key issues over the next few years.
1. Implementing the wet weather corrective action plan and close the last combined sewer outfall.
Phase 1A and 1B are largely completed. Phase 2A and 2B (conveyance and storage) have awarded
bids and are expected to commence this spring. Total Phase 2 cost is about $18,000,000.
2. Ongoing implementation and use of the Lucity asset management software. As part of the SAW
grant, the City procured and implemented advanced software to help manage our Water
system assets.
3. Various construction projects over the next three years.
4. Update the Rate Study to ensure the Sewer Utility continues to be stable financially.
Rates
Per the Burton rate study, water rates are budgeted to be increased 3.5%. With the increase, a 6,000
gallon per month water and sewer customer would see their bill increase by $3.15 per month or $37.80
per year. The combined monthly water & sewer bill for a 6,000 gallon per month customer would be
$93.89.
Illustrative Monthly Bill
Gallons 1000 2000 3000 4000 5000 6000
Water $8.12 $11.48 $14.84 $18.20 $21.56 $24.92
Sewer $22.92 $32.13 $41.34 $50.55 $59.76 $68.97
Total $31.04 $43.61 $56.18 $68.75 $81.32 $93.89

Sewer Utility: Revenue
Revenue
Description
Revenue is derived primarily from user rates and charges. Bills are issued monthly. Rates are made up of
commodity consumption charges and ready-to-serve charges based on meter size. City rate increases
since 2001 have lagged the U.S. Consumer Price Index (CPI) Water & Sewerage Maintenance Series,
which measures the average national change in the cost of water and sewer service to households. The
rates are proposed to increase 3.5% in accordance with the Burton & Associates rate study
recommendations.
Budget Notes
Operating revenues increased $86,100 or 2.8%. The increase was due to the 3.5% rate increase offset by
lower investment interest.
2019-20 2020-21 2020-21 2021-22

Dept 000 - REVENUES ACTUAL BUDGET PROJECTED BUDGET
STATE GRANT - OTHER 0 0 0 0

PENALTIES 17,590 36,000 0 36,000
SEWER READY TO SERVE 662,252 678,000 678,000 702,000
NEW SERVICE 0 20,000 5,000 10,000
SALES - SEWER 2,340,991 2,310,900 2,312,000 2,392,000
INVESTMENT - INTEREST 14,027 10,000 800 1,000
OTHER REVENUE 0 0 0 0
REIMBURSEMENT 21,867 0 0 0
INSURANCE SETTLEMENT 0 0 0 0
TRANSFERS IN 82,890 0 0 0
TOTAL SEWER REVENUE 3,139,617 3,054,900 2,995,800 3,141,000

Sewer Utility: Operations
Sewer Operations
Description
Sewer operations accounts for the water resource recovery operations. This includes both the street
sewers and the Clean Water Recovery Facility. Sewer operations are responsible for treating and disposal
of the City wastewater stream, operating lift stations, testing, system maintenance, and ensuring
compliance with the City’s NPDES permit and Local, State and Federal regulations.
Budget Notes
Sewer operations increased $24,879 or 1.7%. Employee costs decreased $1,071 or -0.2% due normal
wage and benefit increases, and changes in employee mix and benefits. Operating costs increased
$25,950 or 2.6%. The increase was due to higher administration, utilities, maintenance and motor pool
contributions, offset somewhat by savings in other line items.
2019-20 2020-21 2020-21 2021-22

Dept 543 - SEWER ACTUAL BUDGET PROJECTED BUDGET
WAGES - FULL TIME 250,600 281,649 270,000 291,064

COSTS - SUTA 43 32 1,210 285
COSTS - MEDICARE 4,039 4,584 4,584 4,721
COSTS - IN LIEU OF INSURANCE 200 0 0 0
WAGES - OVERTIME 30,077 30,000 20,000 30,000
WAGES - 2E STANDBY PAY 661 1,500 1,500 1,500
WAGES - PHYSICAL FITNESS 500 500 500 500
COSTS - VISION / ANCILLIARY 918 1,229 1,229 934
COSTS - RETIREE HEALTH STIPEND 0 0 0 0
WAGES - HOL/VAC/SICK SELLBACK 599 2,500 750 1,000
EMPLOYEE COSTS 457,576 481,596 459,471 480,525

SUPPLIES - CHEMICALS 24,536 30,500 25,000 30,500
PROFESSIONAL & CONSULTING SERV 22,968 28,500 16,000 22,250
ATTORNEY 0 0 0 0
ADMINISTRATION 198,573 201,100 201,100 228,000

Sewer Utility: Operations
LAB TESTING 4,892 6,000 6,000 6,200
TRAVEL & TRAINING 2,342 6,000 2,000 3,400
REPAIRS/MAINT - BUILDINGS/LAND 17,404 38,000 100,000 10,000
INSURANCE 12,862 24,000 24,000 24,000
MOTOR POOL 116,000 130,000 130,000 137,000
BANK CHARGES 0 0 0 0
UTILITY OWNERSHIP FEE 93,446 122,200 122,200 122,000
CAPITAL OUTLAY 4,092 6,500 5,500 6,500
TRANSFERS OUT 46,649 0 0 0
OPERATING COSTS 854,785 993,325 959,025 1,019,275
TOTAL SEWER OPERATIONS 1,312,361 1,474,921 1,418,496 1,499,800

Sewer Utility: Debt Service
Debt Service
Description
The Debt Service department accounts for the utility’s bonded indebtedness. At the start of FY2022,
there will be $31.7 M in debt issues outstanding. The fall-off in existing debt over the past few years
should accommodate all of the increased debt service on the new Rural Development loans and allow
for orderly rate increases. It is hoped that most normal capital expenditures moving forward will be able
to be funded without additional debt issuance.
Budget Notes
Debt service decreased $137,426 or -8.2% from the prior budget. The reduction was caused by the
paying off of an existing bond offset by the issuance and timing of the USDA Rural Development debt
and the capital improvement bond.
2019-20 2020-21 2020-21 2021-22

Dept 905 - DEBT SERVICE ACTUAL BUDGET PROJECTED BUDGET
BANK CHARGES 1,500 2,500 2,500 2,500

ACCRUED INTEREST EXPENSE (3,457) 4,000 4,000 4,000
PRINCIPAL PORTION OF PAYMENTS 1,381,669 1,055,444 768,079 971,104
1999 B SRF BOND INTEREST 5,375 1,813 1,813 0
2006 SRF BOND INTEREST 19,293 16,937 16,937 14,581
2010 CAPITAL IMP BOND INTERES 106,423 99,631 51,546 0
2015 W/S REVENUE BOND - INT 86,675 85,325 85,325 82,700
2017 W/S REVENUE & REFUNDING - INTEREST 81,172 72,072 72,072 70,522
2020 USDA RD 1a SEWER REHAB INTEREST 1,032 71,500 37,500 70,818
2021 USDA RD 2a BASIN CONVEYANCE
INTEREST 0 224,250 50,000 202,500
2020 USDA RD 1b SEWER REHAB INTEREST 1,376 4,875 2,438 4,826
2020 CAPITAL IMPROV INTEREST 0 6,511 57,680 86,320
Total Debt Service 1,713,229 1,674,655 1,240,435 1,537,229

Sewer Utility: Capital Outlay
Capital Outlay
Description
Capital outlay accounts for the proposed capital outlays for the Sewer Utility. Capital outlays are projects
that have a cost of greater than $5,000 and are for new assets or investments that extend the useful life
of existing assets. Ideally, annual investment in capital assets roughly equals annual depreciation. This
means that assets are being replaced at the same rate as they are wearing out. However, sewer assets
are very long-lived, and their life often exceeds the length they are depreciated over. On a more practical
note, rates would have to be much higher to achieve this goal. Nonetheless, the rate study has set us
on a path to adequately fund needed capital replacements.
Budget Notes
The budget anticipates $100,000 in capital outlay from current resources. However, the bond issues
will fund over $22.0 M of capital improvements over a three-year period, primarily for the wet weather
corrective action program.
2019-20 2020-21 2020-21 2021-22

Dept 904 - CAPITAL OUTLAY ACTUAL BUDGET PROJECTED BUDGET
BOND PROCEEDS 0 (8,353,000) (14,327,000)

BOND CAPITAL PROJECTS 0 8,353,000 14,327,000
CAPITAL OUTLAY 9,253 0 175,000 100,000
TOTAL CAPITAL OUTLAY 9,253 0 175,000 100,000
Results
Description
The Sewer Utility budget anticipates near break-even result. Ending cash position is adequate but could
be stronger for working capital needs.
TOTAL EXPENSES 3,034,843 3,149,576 2,833,931 3,137,029
TOTAL SEWER FUND 104,774 (94,676) 161,869 3,971
Restricted: USDA BDR & RRI (136,627) (136,627)
Ending Cash 118,910 572,769 440,113

Municipal Marina
Municipal Marina
Description
The Municipal Marina fund accounts for the activities of the Manistee Municipal Marina. Recognized as
one of the finest public marinas on Lake Michigan, our marina hosts hundreds of boats a year and also
serves as the home port for several large fishing tournaments. The facility boasts state of the art boater
amenities including comfortable day room, children’s area, spacious showers, restrooms and laundry
facilities. Public restrooms are also accessible from River Street and serve downtown pedestrian traffic.
A public gathering room available for rent is located on the upper level. The marina has 36 slips ranging
in length from 30 to 60 feet. It can also accommodate larger vessels (up to 100’) with a broadside tie
against the Riverwalk seawall. The State recently approved an increase in the number of seasonal docks
to eighteen. It offers a full array of services including gasoline and diesel fuel, pump out, bath facilities,
water and electric hookup and wi-fi.
In April 2018 a strong seiche destroyed several docks on the west side of the marina and damaged the
gas dock kiosk. Insurance covered the physical losses and compensated for business interruption, and
the docks were reconstructed last spring. A grant is being explored to replace the remaining docks on
the east side of the marina. The new docks are adjustable to handle the variable water levels.

Municipal Marina
The Marina is struggling financially, primarily due to its debt load. Debt service is about $63,000 per year
and is supported by a transfer in from the capital improvement fund. This lack of revenue must be
addressed if the debt service support is to be lessened and redirected to other priorities. The Harbor
Commission has made it their number one strategic priority to increase Marina revenue. If successful,
this will help ease the burden on the capital improvement fund.
Infographics
Dockage Fees Fuel Profit
73,520 $25,000
$80,000
70,830 $21,510
$70,000 61,393 $18,587
57,420 $20,000
$60,000 69,100 $15,521 $13,100
60,188 65,000 $15,000
$50,000
$40,000 48,071 50,000 $9,400
$10,000 $7,714
$30,000
$4,305 $4,792
$20,000 $5,000
$10,000
$0 $0
2014 2015 2016 2017 2018 2019
-$964 2020 2021 2022
2014 2015 2016 2017 2018 2019 2020 2021 2022
-$5,000
Budget Notes
Overall revenue increased $39,400 or 19.7% from the prior year budget. Anticipated revenue increases
are based on lower water levels, the slowing COVID-19 pandemic and anticipation of pent-up demand
for boating. Transfers in are flat at $65,000.
Employee costs increased $2,312 or 8.3% from last year. Management is going to be implementing
modified staffing to support the marina operations. Operating costs increased $31,500 or 25.1%. Most
of the increase is due to higher fuel costs as the amount of fuel sales is expected to increase. Although
some electrical and water costs incurred by the Marina actually benefit the Parks; no adjustment is made
in the budget as there are many services provided by the General fund to the Marina that are not billed
nor adequately covered by the administration fee. Summer grass mowing and facility manager time are
two examples. Debt service is mostly flat. The outstanding loans have fairly level amortization.
Without significant additional boater traffic to drive dockage fees and fuel sales, the Marina is expected
to continue to struggle. Cash flow will continue to be tight and will likely require periodic short-term
advances from the General fund.
2019-20 2020-21 2020-21 2021-22

594 - MARINA ACTIVITY BUDGET PROJECTED BUDGET
SALES 2,497 2,500 3,000 3,000

SALES - GAS 105,303 72,000 55,000 75,000
SALES - DIESEL 1,581 0 20,000 25,000
SALES - DOCKAGE 73,520 50,000 55,000 65,000
INVESTMENT - INTEREST 208 100 0 0
RENTAL INCOME 5,800 10,000 4,000 6,000
OTHER REVENUE (20) 0 0 0

Municipal Marina
REFUNDS 0 0 0 0
TRANSFERS IN 65,000 65,000 65,000 65,000
TOTAL REVENUES 263,466 199,600 202,000 239,000
WAGES - PART-TIME 22,989 25,000 25,000 27,000

COSTS - SUTA 52 15 100 136
EMPLOYEE COSTS 25,904 27,975 28,060 30,287

SUPPLIES - GASOLINE 70,205 43,800 47,800 65,200
SUPPLIES - DIESEL FUEL 18,695 18,800 17,400 21,700
PROFESSIONAL & CONSULTING SER 2,500 1,000 500 1,000
ADMINISTRATION 12,175 12,000 12,000 12,000
MARKETING & PROMOTION 595 1,000 500 1,500
UTILITIES - WATER 7,713 9,500 9,500 9,700
REPAIRS/MAINT - SEICHE DAMAGE 0 0 0 0
REPAIRS/MAINT - EQUIPMENT 790 2,000 500 2,000
INSURANCE 1,906 2,000 2,000 2,000
SALES TAX 5,664 4,500 6,000 6,000
BANK CHARGES 7,473 5,000 7,500 7,500
CAPITAL OUTLAY 0 0 800 3,000
OPERATING COSTS 156,489 125,300 124,200 156,800
MARINA BLDG - PRINCIPAL 25,908 26,747 25,908 26,747

PRINCIPAL - INTERNAL LOAN 27,678 27,678 27,131 27,678
MARINA BLDG - INTEREST 6,538 5,639 5,639 4,773
INTEREST - INTERNAL LOAN 2,930 2,908 2,908 2,350
DEBT SERVICE 63,054 62,972 61,586 61,548
TOTAL EXPENSES 245,447 216,247 213,846 248,635
TOTAL MARINA 18,019 (16,647) (11,846) (9,635)
Ending Cash 40,806 31,686 22,051

Boat Launch
Boat Launch

Boat Launch
Description
The Boat Launch fund accounts for the activities of the First Street, Arthur Street and Ninth Street Boat
launches. Both First Street and Arthur Street launches have seen significant investment in recent years.
Arthur Street received a complete makeover including refurbishing the restrooms, reconfiguring the
parking, expanding the launch, adding an accessible fishing pier and landscaping. Ingress and egress to
the First Street Boat launch was reconfigured as part of the First Street reconstruction project. Ninth
Street also needs work, but construction at this site is probably several years out due to funding
limitations, the complexity of the project and higher funding priorities.
Boaters are charged to launch at the First Street and Arthur Street launches. Rates are $45 for a seasonal
and $10 for a daily pass. The Ninth Street launch remains free.
Infographics
Average Sales by Month

$12,000 $11,196
$10,000
$8,000
$5,878
$6,000 $5,440
$3,646 $3,611
$4,000
$2,100
$2,000 $985
$901
$21 $109 $105 $123
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Yearly Sales
40,000
37,370 36,467
38,000 36,000
36,000 33,940 35,000
34,000
34,938
32,000
28,810
30,000 28,862 32,015
30,483
28,000
26,000
24,000
24,233
22,000
20,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Boat Launch
Budget Notes
Revenue is flat from the prior year as fundamentals have not changed. Revenue is largely dependent on
weather, water levels, fishing conditions and the price of fuel. Expenses are down $2,000 or -5.5% from
last year’s budget. The boat launch has a loan from the oil & gas fund to finance the Arthur Street Boat
launch renovations that is paid off in FY 2022. The auto-attendant will need replacement at some point
after the loan has been paid off and resources are available.
2019-20 2020-21 2020-21 2020-21

501 - BOAT LAUNCH ACTIVITY BUDGET PROJECTED BUDGET
SALES 32,015 35,000 33,000 35,000

TOTAL REVENUES 39,374 35,050 33,000 35,020

ADMINISTRATION 2,664 2,500 2,500 2,500
COMMUNICATIONS - PHONE 480 500 500 500
MARKETING & PROMOTION 0 500 0 500
UTILITIES - WATER 2,317 2,500 2,500 2,500
BANK CHARGES 537 600 600 600
CAPITAL OUTLAY 0 0 0 0
TOTAL OPERATING COSTS 43,284 22,100 13,200 20,100
PRINCIPAL - INTERNAL LOAN 13,690 13,967 13,966 14,248

INTEREST - INTERNAL LOAN 581 570 569 288
TOTAL EXPENSES 57,555 36,637 27,735 34,636
TOTAL BOAT LAUNCH (18,181) (1,587) 5,265 384
Ending Cash 32,227 36,990 37,374

Permanent Funds
Permanent Funds
Oil & Gas Fund

Oil & Gas Fund
Description
The Oil & Gas Fund was established to accumulate the principal generated from oil and gas royalties
received from City-owned mineral rights. Charter Section 2-1(B) protects the principal and royalties of
this fund from being spent without a vote of the people.
Investing the assets of this fund is handled by the Oil & Gas Investment Board, consisting of five members
including the Mayor. In the summer of 2008, the City’s legislative initiative to allow the Oil & Gas fund
to be invested like a public pension fund, instead of under the more restrictive PA 20 regulations, was
successful. Public Act 220 of 2008 was enacted into law on July 16, 2008. In order to take advantage of
the new law, the Oil & Gas Board went through a rigorous selection process to hire an investment
advisor. Bartlett & Co. was chosen in January of 2009 and they began investing the funds in March.
Well production and royalty income fluctuate because of variable oil and gas production volumes and
the price of oil and gas. The lifespan of the oil and gas wells is unknown. In the recent past, the wells
were shut down for over a year due to the low price of oil & gas, although production has resumed. The
budget anticipates the wells being in production.
Infographics
Royalties have steadily declined over time as the wells become less productive. Total protected royalties
are just over $7,600,000.
Oil & Gas Royalties
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Oil & Gas Fund
Earnings and the value of the fund have increased since it has been invested in the broader market, but
earnings are also more variable.
Oil & Gas Earnings
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
The fund value is projected to exceed accumulated royalties by about $4,400,000.
Oil & Gas Principal & Accumulated Earnings

$14,000,000
$12,000,000
$10,000,000
$8,000,000
Accumulated
$6,000,000 Principal
$4,000,000
$2,000,000
$-
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Budget Notes
Oil & Gas Fund
Revenue is projected to be similar to the prior budget. Oil royalties are budgeted lower because of the
global oil glut and plummeting prices due to the COVID-19 Pandemic. The budget assumes the oil wells
and processing facility remain open. Dividend and capital gain income are subject to market fluctuations.
The COVID-19 Pandemic brought the 10-year bull market to a crashing halt with major stock indices
down 30% +/-. However, recent economic activity has propelled the markets to record highs. The near-
term outlook is highly uncertain as the economic impacts of the pandemic may last several more months.
The intermediate-term outlook and economic fundamentals are still favorable, but lasting economic
damage from the pandemic will slow growth.
Annually, money is transferred from the Oil & Gas fund into the Capital Improvement fund pursuant to
bond covenants and the oil & gas investment policy and spending rule. The rule is designed to make the
fund operate as an endowment and calls for an annual distribution of 4% in FY2021, 3.75% in FY2022
and 3.5% if FY2023 and beyond, of the twelve-quarter trailing market value. The Oil & Gas Investment
Board approved and recommended a $414,199 distribution based on the 3.75% spending rule for the
proposed budget
2019-20 2020-21 2020-21 2021-22

245 OIL & GAS FUND ACTIVITY BUDGET PROJECTED BUDGET
INVESTMENT - INTEREST 224,366 230,000 230,000 230,000

INVESTMENT - OIL ROYALTIES 30,235 25,000 20,000 25,000
INVESTMENT - GAINS & LOSSES 600,418 400,000 1,400,000 400,000
TOTAL REVENUES 855,019 655,000 1,650,000 655,000

TRANSFERS OUT 401,647 421,722 421,722 414,199
TOTAL EXPENSES 458,916 476,222 481,722 478,699
TOTAL FOR OIL & GAS 396,103 178,778 1,168,278 176,301

Special Revenue Funds
Special Revenue Funds

State of the Streets
Streets
State of the Streets

The City has been managing its streets under a Street Asset Management Plan since 2008. The condition
of the streets as of the last rating in the fall of 2020 is shown below. The City issued its State of the
Streets report in January and will continue to do so annually. In 2020 the City performed full
reconstruction with storm sewer and water main improvements on 0.80 miles of Local Streets and 0.12
Miles of Major Streets. Total project investment including utilities was approximately $1.65 Million.
Average PASER rating has improved from 4.339 to 5.373 since 2008.
Condition of All Streets 2020
Poor (4-1) Good (10-8)

45% 45%
Fair (7-5)
10%
All Streets 5 Year History

25.0 23.7
20.8 21.1
20.0
Miles of Streets
14.2 2016
15.0
2017
10.0 8.4
2018
4.7
2019
5.0
2020
0.0
Good (10-8) Fair (7-5) Poor (4-1)
PASER Rating

Transportation Improvement Plan
A four-year transportation improvement plan has been 2021-2025 Street Investment
created by Public Works Director Jeff Mikula and City Engineer
Shawn Middleton. The plan details a list of projects proposed $1,999,815,
49%
to be completed based on asset management and long-term
planning principles, available revenue and grant opportunities.
It is quite sensitive to key assumptions on future funding levels
and receipt of grants and should be considered a fluid plan.
The plan includes costs for the entire project and all
components including street, sidewalk, curb, storm, water and
$2,121,500,
sewer, as applicable. Total project costs are $10,181,000 and 51%
total local street resources are $4,121,315.
Local Streets Major Streets
CY 2021 - 2025 Transportation Improvement Plan
Local Streets 2021 2022 2023 2024 2025 Total Average
Total Project 4,936,000 1,173,000 563,000 215,000 0 6,887,000 1,377,400

Local Investment 724,815 497,000 563,000 215,000 0 1,999,815 399,963
Miles 0.53 0.32 0.50 0.60 0.00 1.95 0.39
Blocks +/- 10 4 7 3 0 24 5
TBD
Major Streets Total Average
Total Project 492,000 1,673,000 361,000 403,000 365,000 3,294,000 658,800

Local Investment 406,500 606,000 361,000 403,000 345,000 2,121,500 424,300
Miles 0.15 0.80 0.30 0.20 0.17 1.62 0.32
Blocks +/- 3 15 4 4 4 30 6
All Streets Total Average
Total Project 5,428,000 2,846,000 924,000 618,000 365,000 10,181,000 2,036,200

Total Investment 1,131,315 1,103,000 924,000 618,000 345,000 4,121,315 824,263
Total Miles 0.68 1.12 0.80 0.80 0.17 3.57 0.71
Total Blocks +/- 13 19 11 7 4 54 11

The map below shows the work scheduled over the next five years.

Street Funding
Street Funding
The City has committed a significant amount of non-street resources to Major and particularly Local
streets since Council prioritized street resurfacing. More recently, the State committed more resources
to streets thru a gas tax increase and general revenue funding plan. Sewer separation projects have also
allowed the City to resurface many streets. In order to prioritize streets, the City has had to divert money
from a number of sources. This has allowed street work to occur at a much faster pace than would have
been possible absent the additional resources. Future action by the State to enhance road funding could
provide significant resources and lessen the need for other City funding.
Flow of Funds to Local Streets FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Total
From:
General Fund 75,000 70,000 70,000 - - - - 215,000
Capital Improvement Fund 113,000 304,000 80,000 80,000 80,000 80,000 80,000 80,000 897,000
Major Streets (to Local Streets) 50,000 100,000 100,000 220,000 200,000 200,000 200,000 200,000 1,270,000
City Streets - - - - - - - -
-
238,000 474,000 250,000 300,000 280,000 280,000 280,000 280,000 2,382,000
As identified by the street ad-hoc committee, absent additional State funding, the only viable way to
sustainably address street maintenance is to raise additional dedicated revenue. One way to do this is
to pursue additional millage thru a Headlee override. A successful Headlee override vote would restore
2.4 mills and would raise approximately $450,000 annually that could be dedicated to streets. This level
of additional annual resources would allow for significant work:
Reconstruction 4+/- Blocks or

Heavy Rehab 18+/- Blocks or
Light Rehab 60+/- Blocks
An alternative approach would be to have the public vote a dedicated millage to support a bond issue
that accelerates work and is paid off over a number of years. This approach has several advantages
including putting the voters on record as to how high a priority street work is, increasing the amount of
work that can be done, and providing higher transparency and accountability.

Major Streets
Major Street Fund
Description:
The City has 19.6 miles of major streets. This fund records revenue the City receives from the State of
Michigan for its major streets. It is authorized by Public Act 51 of 1951 and is funded by gasoline taxes.
The City files a report with the Michigan Department of Transportation every year detailing how its Act
51 dollars are spent. One obligation of this fund is the debt service on the capital improvement bond
issued to fund the Cedar Street local orphan street project (via a transfer to the Local street fund). The
payment toward the Cedar Street local orphan streets is about $81,000 per year. The bonds will be
retired in FY 2031.
Major Street Revenue from State
Another obligation of the fund is to $800,000
$740,424
pay for operation and maintenance $705,269 $720,698
$700,000
of the Maple Street bridge. The $612,413
$639,853
State through MDOT reimburses $600,000 $573,934
communities for their costs in $500,000 $479,015
operating moveable bridges, but $395,205 $398,167

$416,606
$400,000
not for repairs and maintenance.
$300,000
A third obligation of the fund is to $200,000

pay for routine maintenance of the
streets, including sweeping, $100,000
plowing, salting, snow removal, $-
right-of-way maintenance, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
forestry, patching and crack sealing. This involves reimbursing the general fund for labor and equipment;
although at present administrative costs that can rightfully be charged to the street funds are still being
absorbed by the general fund.
A fourth obligation of the fund is to pay for street resurfacing and reconstruction. This aspect has been
a Council priority and is the focus of the street asset management plan and transportation improvement
plan. Our roads are annually evaluated using the PASER system through Roadsoft, which allows us to
systematically manage our streets, and our asset management plan has given us increased flexibility in
using our street dollars.
The previous State funding mechanism was inadequate to provide for proper maintenance of the street
network. In late 2015, new laws were passed that will raise significant additional revenue for roads. This
includes raising the gas tax and indexing it for inflation, increasing vehicle registration fees and
supplementing Act 51 money with State general fund dollars. MDOT projections show a 78% increase in
State funding over FY 2016 levels by FY 2023. This amounts to over $323,000 annually. Even with the
expected increase, Act 51 revenue does not cover the full costs of maintaining our streets. It is necessary
to supplement these funds with other locally generated funds and\or through grants.

Major Streets
Infographics
There was a decrease in the condition of the major streets when compared to last year and the average
rating for the Major Streets is 5.8 for 2020. The trend from 2008 to 2020 continues to show an increase
based on average condition ratings. However, the condition has declined recently as funds have been
shifted to local Streets and reconstruction instead of rehabilitation projects.
Condition of Major Streets 2020
Poor (4-1)
39% Good (10-8)
48%
Fair (7-5)
13%
Average Major PASER Rating

8.000
6.776
7.000 6.413 6.364 6.161
6.015 5.773 5.790
6.000 5.531 5.569 5.662 5.672
5.256 5.280
5.000
4.000
3.000
2.000
1.000
0.000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Major Streets
Major Street Expenses

Local Street
Support
$200,000 Maintenance &
13%
Operations
Debt Service $353,000
$50,224 24%
3%
Bridge Projects
$299,650
20%
Projects
$587,550
40%
Major Street
Resurfacing\Reconstruction
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Budget Notes
Major Streets
Revenue (non-grant) is expected to decrease $63,300 or 7.2% from the prior year budget. Act 51 revenue
growth is slowing and less reimbursement from the state is expected. Reimbursement for moveable
bridge operating costs continues. Expenses are expected to increase $557,290 or 59.7% as street projects
are budgeted per the TIP.
2019-20 2020-21 2020-21 2021-22

202-MAJOR STREETS ACTIVITY BUDGET PROJECTED BUDGET
FEDERAL GRANT 302,176 0 0 0
STATE GRANT - ACT 51 REVENUE 639,853 726,800 705,000 721,000
STATE GRANT - MOVEABLE BRIDGES 119,155 125,000 115,000 115,000
SNOW REMOVAL 0 10,000 0 0
CHARGE FOR SERVICE - TRUNKLINE 0 0 20,000 25,000
REIMBURSEMENT 11,779 0 0 0
TRANSFERS IN 10,000 10,000 10,000 10,000
TOTAL REVENUES 1,247,524 1,065,800 975,500 1,002,500

ADMINISTRATION 7,500 9,000 8,500 9,000
TRAFFIC SERVICES 1,365 23,500 18,500 15,000
PRESERVATION STREETS 126,381 117,000 84,000 118,000
PRESERVATION STREETS -PROJECT 771,761 161,250 86,500 587,550
PRESERVATION STREETS - US31 0 0 20,000 25,000
ROUTINE MAINTENANCE BRIDGES 9,226 15,500 10,500 185,150
OPERATIONS - BRIDGE 111,412 117,000 106,000 106,000
WINTER MAINTENANCE STREETS 120,386 167,500 123,000 169,500
SIDEWALKS 7,418 12,500 12,500 16,000
UTILITIES - WATER 2,260 2,600 2,300 2,500
UTILITIES - NATURAL GAS 959 1,500 1,500 1,500
TRANSFERS OUT 180,797 300,684 301,131 250,224
TOTAL OPERATING COSTS 1,343,645 933,134 779,231 1,490,424
TOTAL MAJOR STREETS (96,121) 132,666 196,269 (487,924)

Local Streets
Local Street Fund
Description:
The City has 29.6 miles of Local Streets. This fund records revenue the City receives from the State of
Michigan for its local streets. It is authorized by Public Act 51 of 1951 and is funded by gasoline taxes.
The City files a report with the Michigan Department of Transportation every year detailing how its Act
51 dollars are spent.
One obligation of the fund is to pay

for routine maintenance of the Local Street Revenue from State
streets, including sweeping, $300,000
$240,233
plowing, salting, snow removal, $250,000
$242,030 $246,808
right-of-way maintenance, $212,691

$222,124
$199,316
patching and crack sealing. This $200,000
$166,336
involves reimbursing the general $137,227$144,621
fund for labor and equipment; $150,000 $135,267
although at present administrative

$100,000
costs that can rightfully be charged
to the street funds are still being $50,000
absorbed by the general fund.
$-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Another obligation of the fund is to
pay for street resurfacing and reconstruction. This aspect has been a Council priority and is the focus of
our street asset management plan and transportation improvement plan. Our roads are annually
evaluated using the PASER system through Roadsoft, which allows us to systematically manage our
streets, and our asset management plan has given us increased flexibility in using our street dollars. Any
construction of new local streets requires a 50% match of locally raised dollars (special assessment,
general fund, etc.).
Local street resurfacing and reconstruction will always be more constrained than Major street
reconstruction due to State funding limitations. Local resources have to fill in the gap. The previous State
funding mechanism was inadequate to provide for proper maintenance of the street network. In late
2015, new laws were passed that will raise significant additional revenue for roads. This includes raising
the gas tax and indexing it for inflation, increasing vehicle registration fees and supplementing Act 51
money with State general fund dollars. MDOT projections show a 71% increase in State funding over FY
2016 levels by FY 2023. This amounts to about $102,000 annually. Even with the expected increase, Act
51 revenue does not cover the full costs of maintaining our streets. It is necessary to supplement these
funds with other locally generated funds.

Local Streets
Infographics
There was an improvement in condition of the local streets when compared to last year and the
average rating for the Local Streets is 5.1 for 2020. The trend from 2008 to 2020 continues to show an
increase based on average condition ratings.
Condition of Local Streets 2020
Poor (4-1) Good (10-8)

50% 42%
Fair (7-5)
8%
Average Local PASER Rating

6.000
5.044 5.048 5.077
5.000 4.643 4.646 4.477 4.779
4.506 4.601
4.192 4.132 4.163
4.000 3.728
3.000
2.000
1.000
0.000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Local Streets
Local Street Expenses

Maintenance &
Operations
$224,500
22%
Debt Service
$50,225
5%
Projects
$751,671
73%
Local Street
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Local Streets
Budget Notes
Revenue decreased $53,677 or -8.5% from the prior year budget. Act 51 revenue is expected to increase
as the State road funding plan is implemented. Transfers in decreased because less money was needed
for debt service and no lot sales anticipated. Operating cost increased $424,821 or 77.1% based on work
in the TIP. Debt service decreased by $30,459.
2019-20 2020-21 2020-21 2021-22

203 - LOCAL STREETS ACTIVITY BUDGET PROJECTED BUDGET
STATE GRANT - OTHER 0 0

STATE GRANT - ACT 51 REVENUE 222,124 242,267 242,000 240,000
SNOW REMOVAL 0 500 0 0
LOCAL GRANTS 0 0 0 0
INVESTMENT - INTEREST 1,564 500 100 50
REIMBURSEMENT 0 0 0 0
TRANSFERS IN 358,455 390,684 410,214 340,224
TOTAL REVENUES 582,142 633,951 652,314 580,274

ADMINISTRATION 7,500 8,500 8,500 8,500
TRAFFIC SERVICES 68 6,000 3,000 6,000
PRESERVATION STREETS 83,936 95,000 75,000 95,000
PRESERVATION STREETS -PROJECTS 330,265 329,850 290,354 751,671
WINTER MAINTENANCE STREETS 70,714 99,000 66,000 98,500
SIDEWALKS 7,659 12,500 12,500 16,000
PRINCIPLE PORTION OF PAYMENTS 49,310 51,207 51,207 28,265

2010 CAPITAL IMP BOND INTEREST 31,491 29,477 29,924 21,960
TOTAL EXPENSES 581,919 632,034 536,985 1,026,396
TOTAL LOCAL STREETS 223 1,917 115,329 (446,122)
Ending Cash 536,327 874,906 428,785

City Street Fund
City Street Fund
Description
This fund records locally generated and other revenues that are used for street and right-of-way
improvements. Funding sources include money generated from the METRO Act and special assessments.
This fund pays for part of the sidewalk replacement program and also for the tree program. It may also
help provide the local match required for any local street construction projects. MDOT recommends that
locally generated revenues be recorded here, to ensure maximum flexibility. A future Headlee override
street millage, if implemented, would be accounted for here. Cash reserves are stable.
Budget Notes
Revenue is projected to be flat. Expenses are also flat with no programmatic changes from the prior year.
2019-20 2020-21 2020-21 2021-22

204 - CITY STREETS ACTIVITY BUDGET PROJECTED BUDGET
SPECIAL ASSESSMENT REVENUE 0 0 0 0

STATE GRANT - ROW FEE 30,481 28,000 30,000 30,000
LOCAL GRANTS 0 0 0 0
TOTAL REVENUES 30,549 28,000 30,000 30,000
PROFESSIONAL & CONSULTING SER 0 0 0 2,000

TREES 7,402 8,000 8,000 8,000
TRANSFERS OUT 20,000 20,000 20,000 20,000
TOTAL CITY STREETS 3,147 0 2,000 0

PEG Commission
Refuse
Description
The refuse fund records revenues and expenditures relating to refuse collection and disposal. Refuse
collection in the City is a public/private partnership. The trash collection and recycling services are
provided by the private sector through a contract with Republic Services which runs through June 2024.
Yard waste, compost and leaf collection is handled by the City. The billing, collection and some
administrative functions are also handled by the City. The funding is a hybrid system, comprised of a 1.15
mill property tax levy and a monthly user charge. The City offers a drop-off recycling center at Manistee
Catholic Central.
The new contract makes significant changes to the refuse collection scheme. First, it implements a
mandatory residential tote system, with an option to purchase individual bags. Second, it eliminates
curbside recycling. Third, it institutes a dumpster corral program in the downtown. This has all been
implemented and will be fully in effect for FY2022.
Infographics
Sources of Revenue
Other
$53,550
7%
Taxes
$218,120
29%
User Fees
$487,900
64%
Rates for the standard service levels in the Refuse program are shown below. A 3.5% increase is
recommended.
Refuse Rates
2021 2022
Residential
Tidy Tote (1x /week) $15.75 $16.30 $0.55 3.5%
Bag (Per Bag) $2.50 $2.50 $0.00 0.0%
Commercial
Tidy Tote (1x /week) $15.75 $16.30 $0.55 3.5%
Tidy Tote (2x / week) $31.50 $32.60 $1.10 3.5%
Bag (Per Bag) $2.50 $2.50 $0.00 0.0%

PEG Commission
Budget Notes
Revenue increased $63,870 or 9.2% due to the new refuse collection structure being in place for the
whole year, the need to increase fund balance and the need to offset the annual contractor price
increase. Expenses increased by $18,300 or 2.6% because of contractor costs and City labor costs.
Recycling costs have been broken out for greater transparency.
2019-20 2020-21 2020-21 2021-22

226 - REFUSE ACTIVITY BUDGET PROJECTED BUDGET
TAXES - REAL/PERSONAL PROPERT 197,228 205,000 205,000 208,000

TAXES - DELINQ REAL PROPERTY 8,814 10,000 10,000 10,000
TAXES - DELINQ PERSONAL PROP 0 100 600 120
TAXES - PENALTIES & INTEREST 692 700 500
PENALTIES 6,039 9,000 0 5,000
SALES - YARD BAGS 5,895 0 0 0
SALES - TRASH BAGS 3,212 72,000 48,000 48,000
SALES - COMPOST 0 500 0 0
REIMBURSEMENT 0 0 77,500 0
TRANSFERS IN 0 0 0 0
TOTAL REVENUES 615,180 695,700 781,810 759,570

SUPPLIES - BAGS 14,868 12,000 10,000 10,000
ADMINISTRATION 44,753 48,700 48,700 53,000
RESIDENTIAL CONTRACT FEES 415,191 427,000 418,050 448,200
RESIDENTIAL RECYCLING FEES 0 45,000 45,000 48,000
MUNICIPAL CONTRACT FEES 19,407 21,000 21,000 21,500
YARD WASTE CONTRACT FEES 0 3,200 0 3,000
YARD WASTE CITY 114,811 120,000 120,000 129,000
UTILITIES - ELECTRIC 351 0 50 0
CAPITAL OUTLAY 11,127 18,000 132,000 0
TOTAL REFUSE (20,060) (11,700) (25,490) 33,870
Ending Cash 6,976 40,846

PEG Commission
Building Inspection
Description
The City of Manistee contracts with SAFEbuilt to perform its building inspections, including mechanical,
electrical and plumbing. It previously used the State of Michigan.
SAFEbuilt maintains office hours at City Hall two mornings per week but their main office is open every
day for calls during normal business hours. SAFEbuilt also handles the City’s rental inspection program.
Budget Notes
Revenue is expected to decline slightly from the prior year based on the amount and type of
construction activity anticipated. Expenses are tied to building permit revenue and are also expected to
decrease.
2019-20 2020-21 2020-21 2021-22

249 Building Inspection ACTIVITY BUDGET PROJECTED BUDGET
CHARGE FOR SERVICE - PERMITS 20,130 108,000 108,000 80,000

TOTAL REVENUES 20,130 108,000 108,000 80,000
SUPPLIES - OPERATING 0 0 0
SUBSCRIPTIONS & PUBLICATIONS 0 0 0
ADMINISTRATION 0 5,000 10,000 10,000
CONTRACTUAL SERVICE 16,847 84,000 84,000 64,000
PRINTING & PUBLISHING 0 0 0
TRAVEL & TRAINING 0 0 0
MEMBERSHIPS & DUES 0 0 0
CAPITAL OUTLAY 0 0 0
TOTAL EXPENSES 16,847 89,000 94,000 74,000
TOTAL BUILDING INSPECTION 3,283 19,000 14,000 6,000

PEG Commission
PEG Commission
Description
The PEG Commission is a City Commission organized under Chapter 288 of the codified ordinances. The
mission of Manistee PEG-TV (Public, Education, Government Television) is to provide access to local
content that informs, educates and entertains the community we serve. It operates TV 189/190 and
provides services to the City of Manistee, Manistee Township, Manistee County and Filer Township. The
PEG budget is required to be approved by City Council, but the City does not fund this commission.
PEG is in a state of transition. They do not have an executive director and are saving resources to
upgrade their equipment once their strategic plan is complete.
Budget Notes
The budget assumes no revenue from neighboring townships and a Charter cable grant.
2019-20 2020-21 2020-21 2021-22

272 PEG COMMISSION ACTIVITY BUDGET PROJECTED BUDGET
CONTRIBUTION FROM LOCAL UNITS 3,800 8,800 0 0

UNDERWRITERS FEE 0 0 0 0
CHARGE FOR SERVICE 0 500 0 500
CABLE GRANT 4,959 5,000 5,000 4,000
OTHER REVENUE 26 1,000 0 0
TOTAL REVENUES 8,785 15,300 5,000 4,500
SUPPLIES - OPERATING 0 1,000 0 500

PROFESSIONAL & CONSULTING SER 0 10,000 0 2,000
MARKETING & PROMOTION 0 3,000 0 1,500
REPAIRS/MAINT - EQUIPMENT 0 1,000 0 500
CAPITAL OUTLAY 0 3,000 0 0
TOTAL EXPENSES 0 18,000 0 4,500
TOTAL PEG COMMISSION 8,785 (2,700) 5,000 0

Internal Service Fund: Motor Pool
Internal Service Funds
Motor Pool

Motor Pool
Description
The City operates a Motor Pool which provides capital funding for significant equipment purchases. It
receives payments from the operating departments and pays out money for purchasing equipment and
insurance; accruing capital for equipment replacement, or funding emergency purchases if necessary.
In this regard, the Motor Pool provides a cushion against the unexpected. The Motor Pool was originally
established in 1990 with the $551,000 sale proceeds from the Dunes Subdivision auction.
The overall condition of the City's fleet is good. With the Motor Pool, vehicles have been acquired in a
cost-effective manner and replaced on a regular basis. This maintains vehicle efficiency and reduces
maintenance costs. Administration has established a rolling ten-year forecast for Motor Pool equipment
purchases. This schedule serves as a guide to Motor Pool purchases but is subject to significant revision
in case of unforeseen circumstances, changing economic conditions and evaluation of vehicle and
equipment condition.
Recently, the forecast was updated to calculate a truer cost of equipment needs by department. Annual
departmental rent adjustments are being forecast. The conclusion is that motor pool revenues need to
increase, or equipment costs decrease, or fleet size be reduced, or the useful life of the fleet be
extended, if the Motor Pool is going to be sustainable in future years. The budget proposes a solution to
this problem to be phased in over a three-year period by utilizing a portion of the general fund fund
balance. See Motor Pool Sustainability Issue Page. Fleet condition will continue to be closely monitored.
City mechanics do an excellent job of maintaining the fleet and extending its useful life. The budget
proposes buying the following vehicles and equipment:
Infographics
Estimated
Description Department Type Year Cost Method
Tandem Dump/Plow
Truck DPW Replace 2001 $210,000 Finance
Pickup DPW Replace 2009 $33,000 Cash
Annual Annual
Skid Steer Loader
DPW Lease n/a $2,300 Lease
Hot Patch Trailer DPW Replace 2008 $40,000 Cash
Police Car Police Replace 2012 $55,000 Cash
Detective Vehicle Police Replace 2011 $35,000 Cash
Ambulance Fire\EMS Replace 2002 $265,000 Finance
HD Pickup Sewer Replace 2000 $63,000 Cash
Mower Parks Replace 1997 $25,000 Cash
Annual Annual
New Holland Tractor Parks Lease n/a $2,040 Lease
Total $730,340

Motor Pool
Budget Notes
The Motor Pool budget shows revenue in from the various departments and payments made for
equipment purchased outright in cash and payments made various financing arrangements. At the end
of the year, adjustments are made to capitalize purchases, record depreciation, record interest and
accrued interest expense, and relieve or increase debt. The previous year activity column reflects the
activity after these adjustments and matches the annual audit.
2019-20 2020-21 2020-21 2021-22

661 - MOTOR POOL ACTIVITY BUDGET PROJECTED BUDGET

EQUIPMENT RENTAL - POLICE 48,000 55,000 52,500 55,000
EQUIPMENT RENTAL - FIRE 76,000 85,000 80,000 84,000
EQUIPMENT RENTAL - PUBLIC WOR 90,000 95,000 92,500 97,000
EQUIPMENT RENTAL - PARKS 19,000 20,000 19,500 20,000
EQUIPMENT RENTAL - WATER 50,000 60,000 60,000 63,000
EQUIPMENT RENTAL - SEWER 116,000 130,000 130,000 137,000
OTHER REVENUE 0 0 0 0
SALE OF ASSET 0 5,000 30,000 0
INSURANCE SETTLEMENT 0 0 23,000 0
TRANSFERS IN 0 0 100,000 100,000
TOTAL REVENUES 404,409 452,000 587,800 556,300
INSURANCE 42,026 40,000 41,000 42,000

EQUIPMENT - DPW 2,002 198,428 197,442 286,361
EQUIPMENT - PARKS 0 29,100 60,955 27,040
EQUIPMENT - POLICE 0 28,000 46,176 90,000
EQUIPMENT - FIRE 0 74,000 29,000 74,000
EQUIPMENT - WATER 0 31,000 30,393 0
EQUIPMENT - SEWER 0 112,311 66,311 129,311
EQUIPMENT - OTHER 0 0 0 0
INTEREST EXPENSE 29,625 0 0 0
DEPRECIATION 351,552 0 0 0
TOTAL EXPENSES 425,205 512,839 471,277 648,712
TOTAL MOTOR POOL (20,796) (60,839) 116,523 (92,412)
Beginning Cash 403,147
Ending Cash 403,147 370,573

Capital Project Funds
Capital Project Funds

Capital Improvement Fund
Description
The Capital Improvement fund was established in 2005 as a method to provide a funding source to help
pay for capital improvements in the City. Major capital expenditures not required to be recorded in
another fund are recorded and budgeted for in this fund. Historically, the fund has been used to pay for
and supplement general capital needs such as buildings & equipment; however, more recently the focus
has shifted to fund street improvements. Current year projects in the Capital Improvement fund are
briefly discussed here and also supported by case statements that can be found in the Capital
Improvement Plan.
The primary source of income to the fund is an annual transfer from the Oil & Gas fund based on a
Council-adopted sustainable spending rule. This provides a stable, long-term source of funding for capital
projects. Secondary and unlikely sources of funding may include an annual transfer of excess general
fund balance, general fund appropriations, and one-time transfers.
Infographics
As general fund revenues have struggled to keep pace with rising costs, the capital improvement fund
has become an important source of funding general capital needs. As a result, the demands on it have
increased significantly. Several projects have been financed over time, obligating a portion of the fund’s
annual revenue.
Spending by Type Types of Spending

Equipment
Parks 0% 200,000
183,233
18%
180,000
160,000 145,000
Streets
28% 140,000
120,000 108,000
100,000
Marina 80,000
15%
60,000
40,000
20,000
Buildings 0
39% Debt Repeat New
Budget Notes
Revenue is based on the oil & gas spending rule allocation. The budget anticipates five capital projects,
in addition to funds committed for multiple years for prior projects and annual support for the Local
Street Fund. The first new project is Morton park playground improvements. The second project is
rehabilitating the deteriorating Ramsdell Theatre pillars. This may need to be funded over multiple years,
depending on cost. The third project is replacing the hard floor in part of the police department and
constructing an armory room. The fourth project is sealcoating the memorial Park parking lot. The fifth
project is funding the improvements to the Marina patio.

2019-20 2020-21 2020-21 2021-22

430 - CAPITAL IMPROVEMENT ACTIVITY BUDGET PROJECTED BUDGET
INTEREST 7 50 0 50
BOND PROCEEDS 0 0 3,318,228 0
TRANSFERS IN 401,647 421,722 436,722 414,199
TOTAL REVENUES 401,654 421,772 3,754,950 414,249

CAPITAL OUTLAY 21,962 46,000 133,000 108,000
BOND PROCEEDS 0 0 (540,000) (1,727,000)
CAPITAL OUTLAY BOND PROJECTS 0 0 540,000 1,727,000
MARINA BLDG NOTE SUPPORT 65,000 65,000 65,000 65,000
LOCAL STREETS 80,000 80,000 80,000 80,000
MAJOR STREETS 0 0 0 0
TOTAL COSTS 166,962 191,000 356,219 253,000
BOND PRINCIPAL 127,848 135,393 717,595 131,918

2010 CAP IMP BOND INT (FIRST ST) 28,108 26,315 26,291 0
2011 RAMSDELL HVAC IPA INT 25,123 22,036 22,036 18,836
2020 CAP IMP BOND INT 0 49,327 21,703 32,479
TOTAL EXPENSES 348,041 424,071 1,143,844 436,233
TOTAL CAPITAL IMPROVEMENT 53,613 (2,299) 2,611,106 (21,984)
Less: Reserved Bond Cash (2,655,042)
Ending Cash 170,099 46,163 24,179

Grant Management Fund
Grant Management
Description
This fund accounts for grants received from the Local Revenue Sharing Board and State and Federal
grants not required to be accounted for elsewhere.
For LRSB grants, there is a three-member board (with a City representative) that distributes money to
local units of government as prescribed in a compact between the Little River Band of Ottawa Indians
and State of Michigan. Grant applications are accepted twice per year. Public safety grants are the
primary ones awarded to the City.
Infographics
LRSB Grants by Year

$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Public Safety Other
Total LRSB Grants
Other
$542,876
40%
Public Safety
$798,250
60%

Grant Management Fund
Budget Notes
Revenue is an estimate of grants that may be received. We typically apply for and receive several LRSB
grants each year. Expenses are dependent upon the amount of grant dollars received. Funds are typically
expended within 6 to 18 months of receipt, unless the grant is a reimbursement basis.
The City has applied for a FEMA AFG grant to fund SCBA equipment and has also applied for a SHPO
Master Planning Grant for updating the Ramsdell Theatre master plan. We anticipate continuing to
receive LRSB grants in the future.
2019-20 2020-21 2020-21 2021-22

275 - GRANT MANAGEMENT ACTIVITY BUDGET PROJECTED BUDGET
FEDERAL GRANT - GENERAL GOVT 18,986 0 0 0

FEDERAL GRANT - PUBLIC SAFETY 0 288,000 0 97,037
FEDERAL GRANT - CDBG 0 27,500 0 0
STATE GRANTS 0 0 0 33,000
LOCAL GRANTS 93,086 50,000 80,000 100,000
CONTRIBUTIONS/DONATIONS 0 0 1,500
REIMBURSEMENT 0 45,800 0 17,000
TRANSFERS IN 0 12,400 0 5,100
TOTAL REVENUES 112,072 423,700 81,500 252,137
LRSB GRANT EXPENSE 75,009 50,000 98,258 100,000

TOTAL LRSB GRANTS 75,009 50,000 98,258 100,000
FEDERAL GRANT EXPENSE 0 373,700 1,675 102,137

STATE GRANT EXPENSE 50,000
LOCAL GRANT EXPENSE 39,850
TOTAL OTHER GRANTS 0 373,700 41,525 152,137
TOTAL GRANT COSTS 75,009 423,700 139,783 252,137
TOTAL GRANT MANAGEMENT 37,063 0 (58,283) 0

Renaissance Park Fund
Renaissance Park Fund
Description
The Renaissance Industrial Park is located just east of US-31 on M-55. The Renaissance Park fund
accounts for activity relating to the park, including lot sales, marketing and infrastructure. This park was
built in 1997 with funding from the Michigan Economic Development Corporation in the form of a loan
and grant; as well as local funds. In 2007, the City successfully met the job creation goal necessary to
convert most of the loan balance into a grant. The Renaissance Zone designation has expired.
The remaining loan balance of $110,000 was altered by the MEDC to become a no interest loan. The City
will make annual payments of $5,616 until the loan is paid off in 2022. Since there have been few lot
sales recently, the General fund is making these loan payments through a transfer to the Renaissance
Park fund.
Infographics
Budget Notes
Revenue consists of a general fund transfer. The budget anticipates no lot sales. Expenses are flat and
represent one year’s repayment of the loan.
2019-20 2020-21 2020-21 2021-22

496 - RENAISSANCE PARK ACTIVITY BUDGET PROJECTED BUDGET
SALE OF ASSET 0 0 0
TRANSFERS IN 5,620 5,620 5,620 5,150
TOTAL REVENUES 5,620 5,620 5,620 5,150
RENAISSANCE PARK - PRINCIPAL 5,616 5,620 5,620 5,150

TRANSFERS OUT 0 0 0 0
TOTAL EXPENSES 5,616 5,620 5,620 5,150
TOTAL RENAISSANCE PARK 4 0 0 0

Schedule of Fees
Schedule of Fees
Below is the City of Manistee Schedule of fees as may be amended from time to time.
BUSINESS FEES \ REGISTRATION

BUSINESS REGISTRATION $75
OUTDOOR SEATING IN ROW $25
BICYCLE LICENSE $0
MEDICAL MARIHUANA (PER LICENSE) (Annual) $5,000
TAX ABATEMENT / EXEMPTION $1,500
RENTAL REGISTRATION/INSPECTION/COMPLIANCE FEES
Registration Certificate -one-time fee per unit. $40

Initial Inspection -per unit. $90
Reinspection -per unit. $70
Missed/Broken Scheduled Inspection. $40
Unregistered rental - 1st notice $200

Unregistered rental - 2nd notice $400
1st Reinspection fee $100
2nd Reinspection fee $200
Complaint inspection (if found to be a valid $100
complaint, can be requested by either
the tenant or landlord)
Enforcement letter $100
Posting unit unfit for occupancy (if compliance $200
with the rental code cannot be achieved).
Billable Court Time 90/Hr.
SERVICES\RENTAL
PERSONNEL CHARGES (per hour)

Supervisory $40
Regular Full Time $30
O\T $45
EQUIPMENT CHARGES State published
rates
BANNER PERMIT (River St Arch) $50
BRIDGE OPENING (off hours - commercial) $150

Schedule of Fees
CLEAN MANISTEE PROGRAM Actual Charges to
be Billed with
Labor
Brush Pick Up - First 15 Minutes $0
For Each Additional 15 Minutes $30
Trash Pick Up - Minimum $30
Trash - Per Item $30
White Metal - Per Item $45
Per Half Cubic Yard $15
MEETING ROOM RENTAL

First Hour $50
each addl hour $25
MEMORIAL BENCHES (whole) $850
(picnic table) $450
WEDDINGS $100
WEED CUTTING $250 First Hour
Addtl Hrs; Per
Person / Per Hour
+ Equip Chg
HANDGUN APPLICATIONS $5
RETURN CHECK FEE $30
ROAD BREAKAGE DEPOSIT $1,000
(deposit applied to actual and remainder billed)
PARKING VIOLATIONS (Ord. Ch. 430)
Alternate Parking $40

after 14 days $100
Handicap Violations $100
after 4 days $150
Overtime Parking
Overtime Parking $40
after 14 days $100
DOCUMENTS & COPIES
ZONING ORDINANCE $125

MASTER PLAN $75
CHARTER $20
CODE OF ORDINANCES $125
BUDGET $50
AUDIT $40
COPIES

Schedule of Fees
first page $1
each addl page $0.5
Police / Fire Reports $5
Pol/Fire - each addl page $0.5
FAX
first page $5
each addl page $1
VOTER REGISTRATION LIST
1 District - Electronic $10
1 District - Paper $15
All Districts - Electronic $15
All Districts - Paper $25
REFUSE RATES (monthly)
Residential
Tidy Tote (1x /week) $16.30
Bag (Per Bag) $2.50
Commercial
Tidy Tote (1x /week) $16.30
Tidy Tote (2x / week) $32.60
Bag (Per Bag) $2.50
Downtown Dumpster Corral Program

Apartment $16.30 1 tote equivalent
Office, Small Retail, Services $16.30 1 tote equivalent
Large retail, small café, intensive services $48.90 3 tote equivalent
Restaurants, Bars, Large trash $130.40
Extra Bags $2.75
Freon Tag $50.00
Bulky Item $15.00
WATER / SEWER RATES (monthly)
Metered Water (per 1,000) $3.36 Inside City

Metered Sewer (per 1,000) $9.21 Inside City
Water Ready-To-Serve 5/8" & 3/4" $4.76 Higher fees for
larger meters per
RTS schedule
Sewer Ready-To-Serve 5/8" & 3/4" $13.71 Higher fees for
larger meters per
RTS schedule

Schedule of Fees
> 2" Fire Suppression $10
2" Fire Suppression $15
4" Fire Suppression $20 per month
10" Fire Suppression $40
Unmetered Water $25 per month

Unmetered Sewer $60 per month
Escrow Deposit $300
Regular Turn On / Off Service $25

Delinquent Turn On / Off Service $100
After Hours Service Call $100
Install Meter $50
Install 1" Service (Long) $1,850
Install 1" Service (Short) $1,750
New\Sprinkling Meter Cost Cost recovery

New Water Connection 5/8" & 3/4" $200 Higher fees for
larger meters per
SDC schedule
New Sewer Connection 5/8" & 3/4" $3,700 Higher fees for
larger meters per
SDC schedule
WWTP - accept contaminated discharge/gal $0.03

(after hours rate) $0.05
WWTP - Industrial Pretreatment Program varies + operator cost
$30/hr
+ operator cost
$45/hr
OTHER
Utility Connection - per lot
- Sweetnam & Lakeview Subdivision $2,050
+ Sewer Lift Station charge per/unit $250
Industrial Park lots Inquire

Renaissance Park lots Inquire

Schedule of Fees
CIVIL INFRACTIONS (Ord. Ch. 203)

See Ord.202.99 - $500 max
First Additional
Offense Offense
Chapter 415 - Abandoned Vehicles,etc. $250 $500

Chapter 650 - Anti Blight $250 $500
Chapter 654 - Nuisances $250 $500
Section 662.02 - Noise Creating Activities $250 $500
Section 670.03 - Swimming in River $250 $500
Chapter 1022 - Excavations $250 $500
Chapter 1024 - Sidewalks $250 $500
Chapter 1026 - Trees $250 $500
Chapter 1062 - Parks and Recreation $250 $500
Part Twelve/Title Six - Zoning Ordinance $250 $500
Part Fourteen - Building & Housing Codes $250 $500
Chapter 1610 - Fire Prevention Code $250 $500
Other Unspecified $250 $500
PLANNING & ZONING \ BUILDING \

DEVELOPMENT
SPECIAL MEETING $200

CONSTRUCTION BOARD OF APPEALS $150
DRIVEWAY PERMITS $25
PARCEL COMBINATION $50
PARCEL SPLIT/COMBINATION
First $200
Each Additional $75
MAPS
Medium $5
Large $10
SIGN PERMITS $50
RESIDENTIAL LAND USE PERMITS
under 200 sq ft $25
over 200 sq ft $75
COMMERCIAL LAND USE PERMITS LEVEL 1 $100
COMMERCIAL LAND USE PERMITS LEVEL 2 $200
PUD REQUESTS $1,200
STREET\ALLEY VACATION REQUESTS $1,000
ZONING ORDINANCE AMENDMENT $1,000
ZONING BOARD OF APPEALS $750
SPECIAL USE PERMIT $1,000

Schedule of Fees
MAJOR AMENDMENT TO SPECIAL USE PERMIT $500
MINOR AMENTMENT OR TRANSFER OF SUP $200
HISTORIC DISTRICT PERMITS
OUTSIDE SEATING IN ROW $25 initial, $25
Annually
BUILDING|MECHANICA|ELECTRICAL|PLUMBI See City's website for details
NG
CONSTRUCTION PARKING PERMIT
per space / per week $10
INCENTIVE PROGRAM FEES
Brownfield Varies See BRA Application &
Guidelines
PILOT $1,500 Maximum $1500 if more
than one
OPRA $1,500
NEZ $1,500
CRA $1,500
Other $1,500
FREEDOM OF INFORMATION ACT REQUESTS
Cost per copy $0.10 per page
Labor Hourly Rate/Benefits of lowest paid employee

capable of performing compliance task (includes
fringe benefits)
billed in ¼ hour increments.
Outside Counsel $ 51.00

(separate exempt from non-exempt)
Mailing Costs actual cost
Specialty Costs (plans, audio tapes, discs, etc) actual cost
Deposit 50% is required if estimated cost exceeds $50.00
Additional information and FOIA forms can be found on City website: www.manisteemi.gov.
EMS TRANSPORT FEES
ALS Emergency $ 700.00

ALS II Emergency $ 850.00
ALS Non Emergency $ 510.00
BLS Emergency $ 575.00
Schedule of Fees
BLS Non Emergency $ 410.00
Mileage $ 15.75
Oxygen $ 50.00
Treat/No Transport $ 455.00
SPECIAL EVENTS
Varies based on event - see Special Event Request

Policy

Organization Chart
Appendices
Organization Chart
City Council
City Manager
Planning &
Public Works Chief Financial Attorney Engineer
Fire Chief Police Chief City Clerk Zoning
Director Officer (Contract) (Contract)
(Contract)
Fire Streets Finance Elections
EMS Parks Treasury City Records
IT
Water
(Contract)
Assessing
WWTP
(Contract)
Sewer Facilities

SEV & Taxable Value
SEV & Taxable Value
Taxable
Tax SEV Taxable Value Value
Year SEV Growth Value Growth
2000 $ 146,033,156 10.2% $ 129,495,380 7.6%

2001 $ 173,749,756 19.0% $ 148,341,437 14.6%
2002 $ 198,421,736 14.2% $ 160,733,605 8.4%
2003 $ 223,975,606 12.9% $ 175,212,684 9.0%
2004 $ 217,777,056 -2.8% $ 172,431,911 -1.6%
2005 $ 229,542,700 5.4% $ 181,139,334 5.0%
2006 $ 242,067,200 5.5% $ 189,639,514 4.7%
2007 $ 254,905,300 5.3% $ 199,258,541 5.1%
2008 $ 257,394,000 1.0% $ 206,309,448 3.5%
2009 $ 248,539,700 -3.4% $ 212,438,939 3.0%
2010 $ 246,003,300 -1.0% $ 208,913,165 -1.7%
2011 $ 230,251,100 -6.4% $ 205,578,994 -1.6%
2012 $ 218,254,900 -5.2% $ 199,533,902 -2.9%
2013 $ 209,670,500 -3.9% $ 195,871,527 -1.8%
2014 $ 206,306,100 -1.6% $ 193,126,004 -1.4%
2015 $ 208,290,900 1.0% $ 193,602,172 0.2%
2016 $ 207,401,200 -0.4% $ 186,707,047 -3.6%
2017 $ 207,245,600 -0.1% $ 189,040,598 1.2%
2018 $ 213,660,000 3.1% $ 190,818,900 0.9%
2019 $ 224,152,300 4.9% $ 195,633,084 2.5%
2020 $ 239,281,100 6.7% $ 203,452,539 4.0%
2021 $ 256,263,900 7.1% $ 209,491,258 3.0%
2008 $ (1,130,100) 2009 $ (2,947,681)

to to
2021 -0.5% 2021 -1.4%

Millage Rates
Millage Rates
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General 17.30 17.30 17.76 17.76 17.76 17.76 17.76 17.76 17.76 17.76
Refuse 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15
Voted Fire 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 18.45 18.45 18.91 18.91 18.91 18.91 18.91 18.91 18.91 18.91

General Fund Balance
Percent
Year Fund Balance Change Change Fund Balance %
2002 $ 1,197,158 $ 469,150 64.4% 29.4%
2003 $ 1,233,804 $ 36,646 3.1% 25.5%
2004 $ 1,214,416 $ (19,388) -1.6% 24.2%
2005 $ 1,256,500 $ 42,084 3.5% 24.4%
2006 $ 1,206,658 $ (49,842) -4.0% 24.2%
2007 $ 860,121 $ (346,537) -28.7% 16.9%
2008 $ 724,428 $ (135,693) -15.8% 13.6%
2009 $ 853,777 $ 129,349 17.9% 16.1%
2010 $ 919,939 $ 66,162 7.7% 17.7%
2011 $ 981,234 $ 61,295 6.7% 19.3%
2012 $ 1,175,303 $ 194,069 19.8% 20.7%
2013 $ 1,121,904 $ (53,399) -4.5% 19.4%
2014 $ 1,087,038 $ (34,866) -3.1% 18.9%
2015 $ 1,051,792 $ (35,246) -3.2% 18.5%
2016 $ 927,540 $ (124,252) -11.8% 16.3%
2017 $ 1,093,119 $ 165,579 17.9% 19.2%
2018 $ 1,324,601 $ 231,482 21.2% 22.0%
2019 $ 1,385,284 $ 60,683 4.6% 22.2%
2020 $ 1,384,921 $ (363) 0.0% 21.6%
2021Proj $ 1,384,921 $ - 0.0% 21.8%
2022Bud $ 1,384,921 $ - 0.0% 20.2%


$1,600,000 35.0%
$1,400,000 30.0%
$1,200,000 25.0%
$1,000,000
20.0%
$800,000
15.0%
$600,000
$400,000 10.0%
$200,000 5.0%
$- 0.0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2002
2021Proj
2022Bud
Fund Balance % Fund Balance

Water & Sewer Rates
Water & Sewer Rates
The chart below shows historical water & sewer rates. A professional rate study was commissioned in
2014 which resulted in a change in the rate structure in FY 2015. The primary difference was putting a
greater reliance on the Ready-To-Serve charge.
New Rate
Structure Budget
Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022
Water per 1000G $2.52 $2.67 $2.83 $2.93 $3.03 $3.14 $3.25 $3.36
Sewer per 1000G $6.91 $7.32 $7.76 $8.03 $8.31 $8.60 $8.90 $9.21
Bond Debt 5/8"
Water RTS $3.57 $3.78 $4.01 $4.15 $4.30 $4.45 $4.60 $4.76
Sewer RTS $10.27 $10.89 $11.54 $11.94 $12.36 $12.79 $13.24 $13.71
Typical Bill $70.42 $74.61 $79.09 $81.86 $84.70 $87.68 $90.74 $93.89
(6,000 G per Month)
Dollar Increase $3.16 $4.19 $4.48 $2.77 $2.84 $2.98 $3.06 $3.15
Percent Increase 4.7% 6.0% 6.0% 3.5% 3.5% 3.5% 3.5% 3.5%
Annual Increase $50.28 $53.76 $33.22 $34.10 $35.76 $36.72 $37.80

2021-2022 Proposed Budget

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2021 – 2022 Budget

Page | 1 FY 2022 Budget

Page | 2 FY 2022 Budget

Elected Officials & Administration

Roger Zielinski Mayor Third District rzielinski@manisteemi.gov

Michael Szymanski Mayor Pro-Tem Fifth District mszymanski@manisteemi.gov

Dave Bachman Councilmember First District dbachman@manisteemi.gov

Lynda Beaton Councilmember Second District lbeaton@manisteemi.gov

Jermaine Sullivan Councilmember Fourth District jsullivan@manisteemi.gov

James Grabowski Councilmember Sixth District jgrabowski@manisteemi.gov

Erin Martin Pontiac Councilmember Seventh District epontiac@manisteemi.gov

Thad Taylor City Manager ttaylor@manisteemi.gov

Ed Bradford Chief Financial Officer ebradford@manisteemi.gov

Mark Cameron Fire Chief mcameron@manisteemi.gov

Josh Glass Police Chief jglass@manisteemi.gov

Jeff Mikula Public Works Director jmikula@manisteemi.gov

Heather Pefley City Clerk hpefley@manisteemi.gov

Page | 3 FY 2022 Budget

1. Economic Development and Jobs

The most recent Strategic Plan update can be found at www.manisteemi.gov.

Page | 4 FY 2022 Budget

Page | 5 FY 2022 Budget

Honorable Mayor Roger Zielinski

Mayor and Council Members:

Thad N. Taylor, City Manager

Page | 6 FY 2022 Budget

Page | 7 FY 2022 Budget

1. Money to Remove Blighted Structures

2. Money for Morton Park

3. Meet the Needs of the Departments

4. More Money for the Motor Pool

5. Car Allowances for the Fire Chief and Police Chief

6. Continue Street Improvement Plan

8. Plan to Replace the Ladder Truck

Page | 8 FY 2022 Budget

Page | 9 FY 2022 Budget

Page | 10 FY 2022 Budget

Page | 11 FY 2022 Budget

The proposed budget does not recommend hiring a

Council approved an ordinance amendment in

The proposed budget includes $30,000 for blight

Page | 12 FY 2022 Budget

Motor Pool Reserves 1991-2020 Motor Pool Contributions

Page | 13 FY 2022 Budget

Page | 14 FY 2022 Budget

The City has a 1997 E1 HP70 70’ ladder truck. It was

The City also has a 2004 Pierce pumper. It was purchased

• Extend the life of the existing ladder until 2026 +/-.

Page | 15 FY 2022 Budget

Employee Number of Contract Employees by Classification

POAM 9 June 30, 2021 Admin

The public safety unions, consisting of the Employees by Representation

Page | 16 FY 2022 Budget

NUMBER OF EMPLOYEES (Full-Time & Permanent Part-Time Only, Excludes Seasonal)

Page | 17 FY 2022 Budget

Taxes & Fringes

Wages $3,444,362 $3,483,799 $39,437 1.1%

$5,252,391 $5,522,326 $269,935 5.1%

Page | 18 FY 2022 Budget