CAFR FY 2011

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FOR YEAR ENDED JUNE 30, 2011

City of WixomAudit Presentation to the City Council

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City of WixomGeneral Fund Revenue (excluding transfers)

Years Ended June 30

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City of WixomGeneral Fund Expenditures (excluding transfers)

Years Ended June 30

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City of WixomFund Balance of the General Fund(2007-2010 restated for GASB 54)

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City of WixomGovernmental Activities RevenueYears Ended June 30

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City of WixomGovernmental Activities ExpenseYears Ended June 30

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City of WixomWater Fund Operations

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City of WixomSewer Fund Operations

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THANK YOU

Joe [email protected]

Brian [email protected]

Allie [email protected]

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Comprehensive Annual

Financial Report of the

City of Wixom, Michigan

for the fiscal year ending June 30, 2011

CITY OF WIXOM OFFICIALS City Council Mayor

Kevin W. Hinkley

Patrick Beagle

Lori Rich

James Cutright Thomas Rzeznik

John Lee Richard Ziegler

City Administration

City Manager J. Michael Dornan

City Clerk Cathy Buck

Finance Director/Treasurer Kevin Brady

City Attorney Groth Elowsky Kelley Pawlak

Seglund, PLC

City of Wixom

49045 Pontiac Trail Wixom, Michigan 48393-2567

Phone: (248) 624-0894 Fax: (248) 624-0863 www.ci.wixom.mi.us

City of Wixom, Michigan CONTENTS Introductory Section Letter of Transmittal 1-13 GFOA Certificate of Achievement for Excellence in Financial Reporting 14 Functional Chart 15 List of Principal Officials 16 Fund Organization Chart 17 Financial Section Independent Auditor’s Report 1-2 Management’s Discussion and Analysis 4-17 Basic Financial Statements Government-wide Financial Statements: Statement of Net Assets 18 Statement of Activities 19-20 Fund Financial Statements: Governmental Funds: Balance Sheet 21-22 Statement of Revenue, Expenditures, and Changes in Fund Balances 23-24 Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement Of Activities 25 Proprietary Funds: Statement of Net Assets (Deficit) 26 Statement of Revenues, Expenses, and Changes in Net Assets (Deficit) 27 Statement of Cash Flows 28 Fiduciary Fund: Statement of Fiduciary Net Assets 29 Statement of Fiduciary Net Assets - Retirees Trust Fund (Health Insurance) 30 Component Units: Statement of Net Assets 31 Statement of Activities 33-34 Notes to Financial Statements 35-70

City of Wixom, Michigan CONTENTS Required Supplemental Information Budgetary Comparison Schedule – General Fund 73 Budgetary Comparison Schedules – Major Special Revenue Funds: Major Road Act 51 Fund 74 Local Road Act 51 Fund 75 Local Road Capital Fund 76 Notes to Required Supplemental Information 77-81 Other Supplemental Information Nonmajor Governmental Funds: Capital Improvement Fund 83 Major Road Debt Service Fund 84 Special Assessment Fund 85 Budget Stabilization 86 Combining Balance Sheet 87-88 Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 89-90 Budgetary Comparison Schedules – Nonmajor Special Revenue Funds 91-97 Financial Plan Comparison Schedules Nonmajor Capital Project Funds 98-99 Fiduciary Fund - Statement of Changes in Assets and Liabilities 100 Downtown Development Authority – Combining Statement of Net Assets & Activities 101 Local Development Finance Authority – Combining Statement of Net Assets & Activities 102 Notes to Other Supplemental Information Nonmajor Governmental Funds 103-104 Statistical Section Overview 106 Net Assets by Component – Last Nine Fiscal Years 107 Change in Net Assets Governmental Activities – Last Nine Years 108 Changes in Net Assets Business Type Activities – Last Nine Years 109 Governmental Funds Activities - Fund Balance – Last Ten Years 110-111 Historical Revenues – Last Ten Years 112

City of Wixom, Michigan CONTENTS

Historical Expenditures – Last Ten Years 113 Water Enterprise Fund – Water Expenditures by Category – Last Ten Years 114 Wastewater Enterprise Fund – Wastewater Expenditures by Category – Last Ten Years 115 DDA Fund – Revenue and Expenditures by Category – Last Ten Years 116 Library Fund – Revenue and Expenditures by Category – Last Ten Years 117 Taxable Valuation for Ad Valorem and Industrial Facilities Tax (Personal and Real) – Last Ten Years 118 Property Tax Rates – Direct Millage – Last Ten Years 119-120 Property Tax Rates – Overlapping Government – Last Ten Years 121-122 List of Principal Taxpayers 123 Property Tax Levy and Collections – Last Ten Fiscal Years 124-125 Ratio of Outstanding Dept by Type to Assessed Value and Per Capita – Last Ten Years 126-127 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures – Last Ten Fiscal Years 128 Computation of Legal Debt Margin Year Ended June 30, 2011 129-130 Principal Employers – June 30, 2011 131 Full-Time Government Employees 132 Demographic Statistics – Last Ten Years 133 Operating Indicators by Function/Program – Last Ten Years 134 Capital Asset Statistics by Function/Program – Last Ten Years 135 Community Profile Miscellaneous Statistics (Sources: Southeast Michigan Council of Governments And U.S. Census Bureau) 136-153

City of Wixom, Michigan CONTENTS City Maps Master Plan Map 155 Zoning Map 156 Existing Land Use 157 Community Facilities 158 Commercial / Industrial Neighborhoods 159-161 Transportation Conditions 162 Future land Use 163 Street Map 164-165 Annual Disclosure Document 166-170

December 14, 2011To the Honorable Mayor and City CouncilCity of WixomWixom, Michigan 48393

With this letter, we transmit the City of Wixom's Comprehensive Annual Financial Report(CAFR) for the fiscal year ended June 30, 2011. This report has been prepared pursuant to, andin compliance with State statutes, which require the City to publish within six months of theclose of each fiscal year a complete set of financial statements in compliance with generallyaccepted accounting principles (GAAP) and audited in accordance with generally acceptedauditing standards.

The financial statements have been prepared by the City's Finance Department for the purpose ofdisclosing the City's financial condition to its residents, elected officials, and other interestedparties. Management assumes full responsibility for both the accuracy of the data and thecompleteness and fairness of the presentation, including all disclosures. To the best of ourknowledge and belief, the financial information is accurate in all material respects and ispresented in a manner designed to present fairly the financial position of the City.

The Comprehensive Annual Financial Report is presented in three sections:

Introductory Section - Theintroductory section includesthis letter of transmittal, theCity’s organizational chart, alist of principal officials, and afund organizational chart.

Financial Section - Thefinancial section includes theindependent auditor’s report onthe basic financial statements,management’s discussion andanalysis, basic financialstatements, and combining andindividual fund statements andschedules for the City’snonmajor and fiduciary funds.

Statistical Section - Thestatistical section includesselected financial anddemographic data depicting theCity’s historical trends andother significant information.

The City of Wixom's financialstatements have been auditedby Plante & Moran, PLLC. Thepurpose of an independent audit

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is to provide reasonable assurance that the financial statements are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The audit concluded that there was a reasonable basis for rendering an unqualified opinion that the City of Wixom's financial statements for the year ended June 30, 2011 are fairly presented in conformity with GAAP. Plante & Moran's report is presented as the first component of the financial section of this report.

All local units of government within the state of Michigan must comply with the Uniform Budgeting and Accounting Act, PA 2 of 1968, as amended, which requires an annual audit of the financial records and transactions of the City by independent certified public accountants. The primary purpose of the auditing requirements of this act is to maintain the confidence of all interested parties in the integrity of the recordkeeping and financial reporting of local units of government. The independent audit of the City’s financial statements did not require a “single audit” due to not meeting the $500,000 grant threshold as federally mandated. The single audit is designed to meet specific requirements of federal grantor agencies. These requirements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the City's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards.

This letter is designed to introduce the financial report and provide information that would be useful in assessing the City's financial condition (particularly information about future resources and obligations). In addition, the financial statements include a narrative introduction, overview, and analysis in the form of a management's discussion and analysis (MD&A), which should be read in conjunction with this letter.

City Location and Character The City of Wixom has been identified as one of seven top performing communities in the State of Michigan at fostering entrepreneurial growth and economic development. In a study by researchers at iLabs, University of Michigan-Dearborn’s Center for Innovation Research, Wixom was also recognized as a Five-Star Community. This is Wixom’s fourth receipt of this recognition (2007, 2009, 2010 and 2011) from a statewide study of 138 communities by researchers at the University of Michigan-Dearborn’s School of Management Center for Innovation Research (iLabs). “Wixom is particularly proud to again be recognized as being exemplary in using a combination of the best governmental practices and business approaches to retain and attract business. This translates into jobs”, said City Mayor Kevin W. Hinkley. As noted by UM-Dearborn’s iLabs eCities 2011 research “The annual eCities research project, which began in 2007, uses data supplied by the participants as well as other public records to assemble a six-factor, 32-item index of entrepreneurial activity, looking at such factors as clustering, incentives, growth, policies, community and education. The study focuses on entrepreneurship because of its importance to expansion and diversification of Michigan’s regional economies and the impact small businesses have on job creation. To date, 138 communities across Michigan have participated in the study.” You can’t have a “Place” until you have a Vision. The City has kicked off its 2025 Visioning Sessions for the community to begin to build a holistic sustainable community for the future. The

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City has hosted drop in sessions at the City’s Community Center as work begins on the 2025 City Vision Plan to address the future direction, needs and appearance of the City. In tandem with the 2025 Visioning, the City will also be updating the City’s Master Plan and the Parks and Recreation’s Master Plan. Public input was an integral component of these plans. It was hoped that those who participated were given an opportunity to have a say in the future of the City. A survey was placed on the City’s website to receive input from others who are not able to attend one of these meetings and would like to complete an online survey.

The City of Wixom, incorporated in 1958, is strategically located in the southwestern portion of vibrant Oakland County, encompasses an area of approximately 9 square miles, and is approximately 30 miles northwest of downtown Detroit. Wixom is considered an excellent community in which to live and work. A dynamic, growing community, the City provides residents with a quality lifestyle including beautiful residential neighborhoods, excellent schools, and all the social and cultural opportunities that come with a thriving community. Wixom is well-connected to highway, rail, and air transportation routes offering outstanding accessibility.

The City operates under the City Council-Manager form of government. Policy-making and legislative authority are vested in City Council, which is presided over by the Mayor, who is elected for a two-year term. The six other Council members are elected for four-year overlapping terms. The City Council is responsible, among other things, for passing ordinances, adopting the budget, and appointing advisory board and Council members. The City Manager is responsible for carrying out the policies and ordinances of the City Council and for overseeing the day-to-day operations of the City. The City Council appoints the City Manager and City Clerk, who reports, as do all other department heads, to the City Manager. Throughout its history, Wixom has enjoyed a high level of citizen involvement, which has contributed to the high quality of life in the community. Residents are elected or appointed to serve on City Council and a variety of committees, and boards. Residents and officials alike volunteer their time and talent to support various projects to benefit the community.

The City provides a wide range of municipal services, including police and fire protection; the construction and maintenance of roads and other infrastructure; recreational activities and cultural events; community planning, zoning, and code enforcement; refuse collection, water receiving, and sewer disposal services. In addition to general government activities, the activities of the Downtown Development Authority and the Local Development Finance Authority are reported as a separate component unit of the City. Component units are legally separate entities for which the primary government is financially accountable.

Factors Affecting Financial Condition

The information presented in the financial statements is best understood when it is considered from the broader perspective of the environment in which the City operates.

Local Economy - The diverse tax mix of residential, manufacturing, office, service, technology, and retail-recreational centers reduces Wixom’s impact of adverse economic cycles and provides a stable environment for new investment. The City also continues to have a strong, diversified tax base. A total of 38% of the 2011 tax roll is residential and apartments. The remaining 62% is nonresidential, composed of 31% commercial, 14% industrial and 17% personal property. The City is approximately 80 percent developed. The State Tax Commission requested a procedural change for the 2010 Assessment year which reclassified a significant portion of industrial to commercial property classification.

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Efforts continue to bring about the repurposing of the Wixom Ford Assembly Plant’s 318 acre site. In a joint meeting of the City Council and Planning Commission, Ford Development CEO, Donna Inch, presented a new concept plan for the 318 acre former Ford-Wixom Assembly Plant site. The original 2009 Redevelopment Plan has been downsized due to the dramatic change over the last two (2) years in the global economy. Clairvoyant Energy currently intends to continue its pursuit of the development of 500,000 square feet of the 4.7 million square foot plant; with the balance of the plant split into individual industrial/manufacturing condominium units, or demolished in sections as conditions dictate, which is being proposed as a renewable energy park by Clairvoyant Energy (Santa Barbara, CA) and Xtreme Power (Kyle, TX). These two companies continue to work at federal, state and local levels and with Ford Motor Company to obtain the backing needed for this huge undertaking which could bring over 4,000 jobs to Oakland County. The current difficult credit market and complexity of the transactions are making it difficult to finalize.

The region, which includes the City of Wixom and the surrounding area of Oakland County, has almost 42,000 businesses which employ approximately 720,000 people with 50% of Global Fortune 500 companies having business locations in Oakland County. Amongst 3,111 counties nationwide, Oakland County has maintained an AAA bond rating putting it in the top 1% of U.S. counties. Oakland County is ranked seventh for per capita income among all counties in the nation with populations of over one million. Oakland County's 910 square miles are located just north of Detroit. 2010 population estimate is 1.2 million. Oakland County has more people than each of these nine "states:" Alaska, Delaware, District of Columbia, Montana, North Dakota, Rhode Island, South Dakota, Vermont and Wyoming. The Emerging Sectors strategy is working in Oakland County. Emerging Sectors identifies the top growth sectors and targets the top companies within each sector. Since the program began in late 2004, Oakland County has seen 1.7 billion dollars in new investment, more than 24,000 new jobs created, and nearly 10,000 jobs retained. Over the long-term, it is estimated that the future taxable values will increase significantly once the Wixom Ford Assembly Plant’s 318 acres are developed over the next 2-10 years. Due to declines in values in the real estate market, the short-term projections for taxable values will likely decline in FY2012-2013. The estimated change in taxable value for FY2011-2012 could range from a decline of 6%-10%. As discussed with City Council, the Five Year Financial Action Plan continues to need further modification to assist in softening the impact of this trend on the City’s budget for the FY2013.

The City Charter allows a property tax rate of up to 8 mills, which is then reduced by the Headlee Amendment to 7.5429 mills. During the 2010-2011 fiscal year, the City levied 7.5429 of its authorized mills. As part of the Five Year Financial Action Plan, the City has projected that it will continue to levy the 7.5429 mills in the FY2011-2012 and FY2012-2013 budgets. Accounting and Budgetary Control - The City's comprehensive internal controls framework has been designed to protect the City's assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of financial statements in conformity with GAAP. Internal accounting controls are designed to provide reasonable, but not absolute, assurance that the financial statements will be free from material misstatement.

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The annual budget serves as the primary financial management tool for the City. From November to March, the City Manager and department heads develop and review departmental and activity budgets. At the budget review sessions in April and May, the City Council gives feedback and communicates its priorities and the direction in which it wishes to proceed. The City Manager, also in a public forum in May, presents the proposed budget in line-item detail to the City Council for review and approval. The Council is required to hold public hearings on the proposed budget and to adopt a final budget, by charter, on the fourth Tuesday in May. In addition, beginning in FY2011-2012 budget the City has provided projections of revenues and expenditures for two years, Fiscal Year 2011-2012/Fiscal Year 2012-2013. It is hoped that the multi-year budget presentation will inform the City Council and end users of the expected financial condition and health of the City while providing information about ongoing strategy and goals of the City.

The City of Wixom's budget is a plan that represents the City Council's commitment to provide cost-effective, efficient, and quality services to its residents. The annual budget is adopted in accordance with legal requirements governed by the City’s Charter and the Uniform Budgeting Act, State of Michigan, P.A. 621 of 1978. Activities of the General Fund and Special Revenue Funds are included in the annual appropriated budget. The General Fund and Special Revenue Funds are under formal budgetary control. Financial plans for the Debt Service Funds, Enterprise Funds, Capital Project Funds and Component Units are submitted to City Council for review and approval. The City adopts its budget by function and category, which is the level of classification detail at which, by law, expenditures cannot exceed appropriations. Budget transfers between budgetary categories, functions or from fund balance are periodically approved by the City Council. Department heads with City Manager approval may make transfers of appropriations annually within a department up to an aggregate of $20,000. Unexpended appropriations lapse at year end, while open purchase orders and contract encumbrances are immediately reappropriated to the subsequent fiscal year. Overall for the year, the total General Fund expenditures exceeded total revenues by ($77,419). The Budget Stabilization Fund was combined with the General Fund in accordance with GASB 54 while it was not combined for Budget and five year financial planning purposes.

Long-term Financial Planning – Over the past several years, the State has experienced economic difficulties. Approximately 11% of the City's total revenues come from sales tax that is collected by the State and shared with local units of government. Because of reductions in statewide collections of income tax and single business tax, the State government has retained a higher portion of the sales tax in order to balance its own budget. This has resulted in a decrease in state-shared revenue in the current year. Over the last ten years the City’s State Shared revenue has decreased from $1,372,133 (10/31/2001) to $915,590 (10/31/2011) or 33.3% reduction. Both the constitutional and statutory portions of State Shared revenue have decreased over the last 10 years (Constitutional decreased $12,434 or -1.4% and the statutory portion decreased $444,109 or -86.8% over the same time period.) Currently, the State projects revenue sharing total for the City will be $915,590 for 10/31/2012 with the statutory portion at $21,996 and the constitutional portion at $893,594.

Along with efforts to ensure a future growth in tax revenue, in FY2006 the City developed a Five-Year Financial Action Plan for the City’s General Fund and Capital Improvements Program to identify its long-term financial and capital needs and ability to fund programs and services.

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The Financial Action Plan highlights include the following goals for the five years from FY2007to FY2011.

1. Fund Balance will remain at 15%.2. The City will try to keep the overall City millage rate the same over the next five year

period.3. The Headlee buffer will not be used unless it is deemed necessary.4. Each year any excess of actual over budget which causes the fund balance to exceed 15%

at the close of the audit will be transferred to the Budget Stabilization Fund. At the closeof Fiscal Year 6/30/2011, it is estimated that $509,893 will be transferred from theGeneral Fund to the Budget Stabilization Fund (These two funds are combined forFinancial Statement purposes according to GASB 54.) providing a combined fundbalance of approximately $3,281,850 as of 7/1/2011 (General Fund $1,907,362 andBudget Stabilization Fund $1,374,488) or 35% compared with the FY2011-2012 originalbudget.

5. Changes in revenue have been implemented in the building permits and fees areaaccording to the new construction valuation tables revised by the International CodeCouncil (ICC) and the introduction of a Rental Inspection/Income Ordinance. The Cityhas begun an examination of other user charges and fees for rental charges for thecultural center, Parks & Recreation fees and charges, and user fees and charges for otherservices.

6. Reduction in capital improvements will be instituted before operational reductions whereappropriate.

7. Budget amendments will be limited except if revenues are available to support increase inbudget.

8. As of July 1, 2006, new hires for non-union will be provided Defined ContributionRetirement Plan (ICMA), rather than the MERS Defined Benefit Plan.

9. As of July 1, 2006, new hires for non-union will be provided an annual DefinedContribution Health Savings amount of $1,300, rather than the 90%/10% Defined BenefitHealth Plan for Retirees.

10. The City has instituted a Health Arrangement Plan (HRA) to lower health insurancepremiums for Non-union, Police Officer Union, Police Sergeant Union, DPW Union, andClerical Union. As of June 30, 2011 the estimated aggregate savings on the HRAprogram is $799,764 of which $332,464 relate to FY2010-2011, $256,264 relate toFY2009-2010, $131,400 relate to the FY2008-2009, and $79,636 for FY2007-2008.

11. As of July 1, 2006, new hires for non-union employees will be provided HMO rather thanPPO health insurance plans unless the employee pays for the additional cost for the PPOplan.

12. The City is examining with other communities privatizing or sharing services withdifferent departmental functions such as Public Safety and Public Works. The City hasrenegotiated the contract with United Water for Wastewater and Water UtilityManagement Services for a 10 year period.

13. The City has reduced its workforce from 65-55 since FY2004 when it was necessary andavailable.

14. Over the next five years from FY2012 though FY2017, the City has identified over $4.2million in capital needs with funding sources in place to meet those needs.

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This Five-Year Financial Action Plan is a cornerstone in the financial plans of the City. From an operational perspective, while the City’s fiscal health is good, the City will need to weather further declines in taxable values before the Ford Motor Company property is developed. This development should create further opportunities within the City to broaden the diverse and growing economy within the City. The increase in property tax revenue continues to be constrained by the Headlee Amendment (which reduces the maximum authorized millage rate when property is transferred and increases in value) and the provisions of Proposal A (which limits increases in taxable values to 5 percent or the rate of inflation, whichever is less). The City will need to modify the Five-Year Financial Action Plan further to bring revenues and expenditures in line. This is the fifth successful year operating with the rolling Five Year Financial Action Plan. Through the utilization of this living document we have been able to maintain services, staff and consistent tax rates in an economic climate ripe with declining property values and business reduction. The City continues to modify the goals outlined in the Five-Year Financial Action Plan as it tries to continue to meet many of the original goals of this plan.

• General Fund Balance has remained at 15%. • General operating millage has remained the same along with the overall millage except

for new Bike Path millage of .30 mills. • Combined utility rates for water and wastewater have remained the same over this period

and continues to be one of the lowest utility rates in Oakland County. • Due to declines in taxable values across Oakland County, the Headlee buffer has been

utilized as part of the Financial Action plan. • The City millage rate is 11.6623 which continues to have one of the lowest millage rates

in Oakland County whose City millage rates range from 9.05 to 24.7689 mills. • The Solid Waste Collection and recycling fee was reduced from $160/year to $155/year

with special pricing for qualifying senior citizens. • Health Reimbursement Plan reduced health care costs and provides measurable savings. • No full-time personnel additions have been made over the Five-Year Financial Action

Plan while no layoffs have occurred. Any reduction in full-time staff has been due to planned retirement or change in employment opportunities.

• The total General Fund expenditures are less for FY2010-2011 ($9,070,356) than in FY2009-2010 ($9,576,793) by $506,437 or 5.3% decrease in overall expenditures.

• The total General Fund wage/salary expenditures were lower for FY2010-2011 than in FY2009-2010 by ($72,876) or 1.8% decrease in overall wage/salary expenditures. The overall percent increase in the actual wage/salary expenditures from FY2005 to FY2011 was 5.1% or less than 1% per year.

• The total General Fund fringe expenditures increased for FY2010-2011 than in FY2009-2010 by $155,496 or 8.5% increase in overall fringe expenditures. The overall percent increase in the actual fringe expenditures from FY2005 to FY2011 was 16% or 2.7% per year. The reason for the fringe benefit increase is due to MERS percent increases on Defined Pension Plan. This is due to reduced time period for amortization and recovery of investment losses in previous year over an extended period of time. Health insurance expenditures increased overall by 2% while Delta Dental decreased by 3%.

• Overall Municipal Debt decreased from last fiscal year from $22,105,678 to $19,542,725. The City retired the Wastewater Debt early in FY2008, the LDFA bonds in FY2007, and the Civic Center Bonds in FY2009. The City refinanced bonds in September 2009 with a savings of approximately $167,000.

• Ratings Agencies have indicated A1 (Moody’s) rating for the City. The current debt percent over the assessed value is well below the 10% of the SEV as required by Act 279, Public Acts of Michigan.

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• The City has funded OPEB and Pension, the current OPEB plan’s funding level at 46% and the pension plan’s funding level at 68%.

The 2011 OPEB expenses include a City contribution of $221,620 towards retiree health care. The OPEB expenses were allocated to the various functions or programs; they are included in the general government program. The City has made significant changes in the fringe benefit costs as indicated in its Financial Action Plan. Greater revenue growth and/or cost containment measures have been implemented to help mitigate future stress on City finances.

The City participates in the Municipal Employees’ Retirement System (MERS), an agent multiple-employer defined benefit pension plan that covers substantially all full-time employees of the City. The MERS provides retirement, disability, and death benefits to plan members and their beneficiaries. Required contributions are determined as a part of an annual actuarial valuation. As of December 31, 2010, the ratio of present assets to actuarial accrued liabilities was 68%. As of July 1, 2006 new non-union employees are offered a Defined Contribution Plan using ICMA-RC. The City of Wixom also provides post retirement health care benefits for certain retirees and their dependents. As of the end of the current fiscal year, there were 4 retired employees receiving these benefits. Additional information pertaining to the City's pension and postemployment benefits can be found in Notes 10 and 11 of the notes to the financial statements.

The MERS board has passed new funding levels. Municipalities’ retirement pensions must be funded up to a designated percentage before allowing an increase or change in benefits. In approximately 4 years they went from funding levels of 50% to 100%. Funding level pushed to 100% as of July 1, 2012.

• Funding level required at 50% funded prior to January 1, 2008 • Funding level required at 60% funded commencing January 1, 2008 • Funding level required at 80% funded commencing July 1, 2009 • Funding level required at 100% funded commencing July 1, 2012

The Board also made changes to the MERS Fiscal Responsibility Policy, Plan Document section 43C, regarding minimum funding requirements. “Effective July 1, 2012, the MERS Fiscal Responsibility Policy will require a division and its municipality be at least 100% actuarially funded to increase benefits. The previous 80% requirement was adopted by the Board in July of 2009. This policy is designed to help municipalities provide sustainable, affordable retirement benefits to their employees. As trustee and fiduciary of the MERS Plan, the Board has the duty to operate on behalf of municipalities for the exclusive benefit of retirees, beneficiaries and participants.” Legislation, PA 152, that requires public employers to either put a hard cap on health care costs or have an 80/20 cost sharing arrangement (with an opt-out for locals) was approved by Governor Snyder. The bill has a preference for a hard cap, so all public employers are capped in what they can pay for an employee's health care costs. The cap is $5,500 for a single person, $11,000 for a couple and $15,000 for a family. A public employer may, with 2/3 vote of its governing body, instead opt out of the hard cap or 80/20 cost sharing arrangement. In accordance with the Governmental Accounting Standards Board, the City has completed steps related to Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions (Issued 02/09). As described by GASB “The objective of this Statement is to enhance the usefulness of fund balance information by providing clearer fund balance

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classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.” You may follow the link to obtain more information on this statement. http://www.gasb.org/st/summary/gstsm54.html

The City began funding for Postemployment Benefits in Fiscal Year 1993 when the Retiree Insurance Fund was established. Though the City has less than 100 participants, an actuarial valuation was completed as of June 30, 2005. The obligation to provide retiree health care benefits included past service cost that will be amortized over a 30 year period. The City has begun to contribute an annual recommended contribution (ARC) as noted in the valuation. The contribution for FY 6/30/2011 was for $221,620 for the General Fund portion and $34,960 for the Library portion. As of FY 6/30/2011 the fund balance in the Insurance Retirement Fund amounted to $3,419,519. In February 2005, the City setup a trust fund under PA 149 of 1999 by establishing a Health Vehicle Investment Fund with Municipal Employees Retirement System (MERS). This was established with the hope to provide a greater rate of return on investments over an extended period of time.

Major Initiatives - Fiscal Year 2010-2011 The City enjoyed another productive year in service to the residents, businesses and visitors and remains “THE BEST HOMETOWN IN THE MIDWEST”. The following will briefly highlight our accomplishments and other noteworthy matters:

• The City was once again recognized by the University of Michigan – Dearborn, School of Management and awarded their Entrepreneurial Cities Award for a fourth time. We were honored by this award in 2007, 2009, 2010 as well.

• Efforts continue to bring about the repurposing of the Wixom Ford Assembly Plant’s 318 acre site. Surgical demolition within the plant has occurred for the sole purpose of preparing the plant for reuse.

• Ultraviolet disinfection upgrades completed at the Wastewater Treatment Plant. The UV system disinfects the WWTP's effluent by removing the pathogens and coliforms prior to discharge into the Norton Creek. The new UV system is approximately 30% more energy efficient than the old system and was designed to accommodate the future need of the WWTP including flows from Milford.

• A Rental Ordinance was adopted in July of 2010 and has been implemented. The purpose of the Ordinance is to protect the public health, safety and welfare to ensure that all rental units are in compliance with Building and Safety Codes and to prevent a public nuisance.

• Once again, partnering with the Walled Lake Eagles, the City participated in the Rebuilding Oakland County program wherein homes received improvement. Also with the Eagles, canned good donations were collected at a City Summer Concert.

• For the sixth consecutive year Wixom has received the Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report from the Government Finance Officers Association of the United States and Canada.

• Massive repairs were completed in all five (5) phases of Wexford Mews under budget by $500,000. Two safety paths (Grand River and Potter Road) were completed under budget saving the City $70,000.

• 75 new businesses moved into Wixom, including Wolverine Assemblies, Plasan Carbon Composites and Hallite Seals America. Additionally, an investment of approximately $6 million in new construction was made this fiscal year by the private sector.

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• Demolition of 29200, 29230 and 29240 Beck Road properties was completed in 2010 as well as the demolition of 48001 West Road.

• The City Hall and Sibley Corners areas became wireless campuses. • In our continuing effort to reduce expenditures, a number of initiatives were undertaken

and/or improved upon including:

1. The City Compressed Workweek. This program has resulted in a twelve month savings totaling $48,337. We continue to receive positive comments from the public and the employees regarding this program.

2. The DPW continues to be a regional leader in public works innovation. Examples include the compressed work week split shift program, beet juice deicing cocktail, multi-purpose hooklift truck, the use of BidNet for the sale of surplus equipment, the partnership with SPURT for yard waste recycling, the e-waste drop-off center and others. The latest DPW innovation is the retrofitting of heavy equipment, trucks and police vehicles with a quick connect oil change system manufactured and distributed by the Wixom based company Environmentally Safe Oil Change Commercial Truck, Inc. (ESOC). The ESOC System evacuates vehicle engine waste oil and pumps in the fresh oil pressurizing the bearings and lubrication system thereby eliminating “dry starts” and reducing engine wear. In addition to extending engine life, the system reduces the time required to perform an oil change and eliminates the possibility of an environmental incident by discharging waste oil directly into a collection tank for subsequent reuse/reprocessing by a third party.

3. Farmer’s Market was relocated to Sibley Park and expanded to include weekly acoustical entertainment, on-site Master Gardeners, demonstrations of various cooking recipes, and kids’ activities.

4. Summer Concerts were expanded to include an art show, wine tasting, inflatables and micro beer tasting.

5. A $13,000 grant provided the City a new website including a notification system for residents, job postings, online job applications and a Business to Business forum among other things.

6. A lease with 123.Net for antenna space on the water storage tank is generating revenue while serving as a redundant communications system for a major local business.

7. The City received a $76,000 grant allowing us to retrofit the streetlight system in the VCA and save substantial energy costs in the future. This contributed to the Oakland County Green Community Excellence Award.

8. The City saved $13,000 by changing the way we bill for solid waste. 9. The City saved $256,264 through lowering insurance premiums with the Health

Arrangement Plan. 10. The City partnered with the Road Commission for Oakland County and Cadillac

Asphalt to evaluate a Warm Mix Asphalt, as an alternative to Hot Mix Asphalt, thereby reducing production costs, greenhouse emissions and producing improved material compaction. The test area is located on Wixom Road between West and the Wixom/Old Wixom Road intersections.

11. This year’s Fire Department Open House was entirely supported through the donations of corporate sponsors. Firefighters also donated $7,800 to the University of Michigan Trauma Burn Unit.

12. Wixom again received an A-1 bond rating and refinanced our bonded indebtedness lowering interest rates by 2.1% which resulted in a savings of approximately $165,000.

10

13. Wixom has continued to maintain one of the lowest combined water and sewer rates

in Oakland County. 14. Approximately 45 local businesses provided financial support for civic events

contributing $35,000 to programs/events including Founder’s Day, Concerts in the Park, Fall Fest and Showcase Wixom.

15. Police Department grants allowed the purchase of six (6) in-car video project ($9,000) and security key pads ($2,872) for the Department. $11,000 was also generated through the loan of specialized investigative equipment.

Major Initiatives – State of Michigan Major pieces of legislation, enacted and proposed, have occurred during FY2011 and during the first quarter of FY2012 which may effect, positively or negatively, the City’s financial position.

Exempt Personal Property taxes: Legislation has been introduced to exempt personal property taxes. Though a major effort by the MML and local communities requesting offsetting revenue has occurred, it is not guaranteed at this time whither the new legislation will provide any source of revenue to replace personal property tax losses. Lt. Govenor Brian Calley and Senator Jack Brandenburg, chair of the Senate Finance Committee, indicated that there is no current legislation to look at eliminating the Personal Property Tax (PPT) before the end of the year.

The City would face another major financial setback if personal property taxes were eliminated. Due to lower property values, less than full recovery in the economy, along with decline in permit fees and interest income; stability of revenue sources continues to be a problem. Currently, personal property taxes account for 17% of the City’s property tax revenue.

Estimated Personal Property Tax Revenue Loss

General Fund ($887,006)

Local Road Capital Project ($133,043)

Major Road Debt ($100,601)

Safety Bike Path ($35,275)

DPW & Fire Construction Debt ($51,176)

Water Enterprise ($164,907)

Total (1,372,008)

Local Government and School District Fiscal Accountability Act, Public Act 4 of 2011: This act authorizes the State to intervene into the financial matters of local government if it is determined a financial emergency exists. It is hoped by early intervention, the State can appoint an emergency manager who can reverse the financial outlook of an examined municipality. The emergency manager has significant powers including assumption of the authority of local officials, and the power to terminate collective bargaining agreements and contracts under certain circumstances. The State Treasurer can conduct a preliminary review for financial problems if one or more special events occur.

11

Public Act 54 – Retro-Pay Prohibition: From the date of the expiration of a contract to the date of a new contract, a public employer shall pay wages and benefits at the rate in effect on the expiration date of the contract. Since benefits are also not allowed to increase during this period, the employees shall bear any increased cost of benefits during this period and the employer is authorized to make necessary payroll deductions for the increased costs of benefits.

The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting for the City of Wixom for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2010. This was the sixth year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR, which satisfies both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We hope that this current CAFR continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine our eligibility for another certificate.

In addition, Eastern Michigan University in conjunction with the City of Wixom, prepared the Popular Annual Financial Report (PAFR) as part of a class project. The City submitted the PAFR to the Government Finance Officers Association (GFOA) for a Certificate of Excellence. The GFOA established the PAFR Program in 1991. Special thanks to Professor William LaGore and his students in Accounting 546, Public and Nonprofit Sector Accounting, at Eastern Michigan University for their contribution to this PAFR whose collaboration with the City of Wixom is much appreciated.

A PAFR is a simplified version of the Comprehensive Annual Financial Report (CAFR) designed to explain in easy to understand language for the general public and other parties without a background in public finance. Unlike the CAFR, the PAFR is unaudited and presented on a non-GAAP basis. We hope this document makes the City's financial information more accessible to ordinary citizens and other interested parties. The PAFR provided a valuable learning experience for the students as well as created an enhanced experience for the citizens of Wixom.

The City has placed on their website interactive financial tools including a Citizen’s Guide, A City Scorecard, a City Dashboard and further financial data. The Citizen's Guide and Dashboard is the Accountability and Transparency requirement under the State of Michigan Economic Vitality Incentive Program (EVIP). Understanding the current status and future prospect of the City of Wixom's financial health/condition is an integral responsibility of City Council and the professional staff, and is essential to paving the way to prosperity for the generations to come. City of Wixom – Scorecard: The Scorecard covers the following areas: Economic Strength, Fiscal Stability, Governmental Services, Health & Education, and Quality of Life. You may follow the link to view the interactive scorecard. http://www.cityofwixom.com/index.aspx?NID=1144 City of Wixom – Dashboards: We hope the Financial Dashboard provides a clear picture of the City's Financial performance. The areas covered by this interactive dashboard include Millage Rates, Fund Balance, Revenues, Expenditures, Personnel, Other Funds, Library, Capital Improvements, Utilities and Debt. You may follow the link to view the interactive scorecard. http://www.cityofwixom.com/index.aspx?NID=1074

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Public Safety

Police Fire

Patrol

Investigation

Records

Incident

Command

Inspection

Records

Finance

TreasuryInformation

Systems

Community

Services

Parks &

Recreation

Senior

Services

Community

Center

Public Services

Water &

Sewer

Utilities

Dept. of

Public

Works

Building

Engineering

Construction

Services

Planning

Code

Compliance

Solid Waste

& Recycling

Storm Sewer

Streets &

Roads

Development

Services

Fleet

Services

Citizens

City Council

City Manager's

Office

City Clerk's

Office

Boards & Commissions

List BelowSenior Citizens, Cemetery Authority, Beautification, LDFA & DDA, Parks &

Recreation, Planning Commission, Board of Review, Board of Appeals,

Land Acquisition

City of Wixom Functional Chart

Assessing

15

City of Wixom

List of Principal Officials

June 30, 2011

Title Name City Manager J. Michael Dornan Assistant City Manager Tony Nowicki City Clerk Linda Kirby Deputy City Clerk Anna Rottermond Director of Public Works Michael Howell Building Official John Lipchik Finance Director/Treasurer Kevin Brady Deputy Treasurer Marilyn Stamper Community Services Director Deanna MaGee Public Safety Director Clarence Goodlein Fire Chief Jeffrey Roberts

16

Fund Organizational ChartJune 30, 2011

City of Wixom, MichiganFund Organization Chart

General Fund Special Revenue Funds:

Debt Service Funds: Community Development Block Grant Fund

Major Road Debt Major Road Act 51 Fund

Special Assessment Local Road Act 51 Fund

DPW & Fire Construction Debt Land Acquisition Fund

DDA/VCA Development Debt Local Road Capital FundSafety Bike Path Fund

Capital Projects: Forfeiture Fund

Capital Improvement Fund Special Agency

Major Road Capital Fund Solid Waste Collection Fund

DPW & Fire Construction Fund (Closed) Cemetery Fund

Retiree Insurance FundBudget Stabilization Fund (Combined withGeneral Fund)

Water Enterprise Fund Sewer Enterprise Fund

Trust & Agency Retiree Health Insurance

Downtown Development AuthorityLocal Development Finance Authority

Governmental Funds

Proprietary Funds - Enterprise Funds

Fiduciary Funds

Component Units

17

Independent Auditor’s Report To the City Council City of Wixom, Michigan We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Wixom, Michigan (the “City”) as of and for the year ended June 30, 2011, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City’s management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Wixom as of June 30, 2011 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The management's discussion and analysis and the budgetary comparison schedules, as identified in the table of contents, are not a required part of the basic financial statements but are supplemental information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management, regarding the methods of measurement and presentation of the required supplemental information. However, we did not audit the information and express no opinion on it. The introductory section, other supplemental information, statistical section, community profile, city maps, and annual disclosure document, as identified in the table of contents, are presented for the purpose of additional analysis and are not required parts of the basic financial statements.

1

amanda.omalley

Southfield (West)

amanda.omalley

Praxity

To the City Council City of Wixom, Michigan

However, these items have not been subjected to the auditing procedures applied by us in the audit of the basic financial statements, and accordingly, we express no opinion on them.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Wixom’s basic financial statements. The accompanying other supplemental information, as identified in the table of contents, is presented for the purpose of additional analysis and is not a required part of the basic financial statements. The other supplemental information, including budgetary comparison schedules, combining balance sheets, and combining statements of revenue, expenditures, and changes in fund balance, have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

During the year, the City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund-type Definitions, as discussed in Note 1. As a result of this required implementation, the Budget Stabilization Fund is now reported in the General Fund, as discussed in Note 15. In addition, fund balance classifications in the governmental fund financial statements have been changed to reflect the five new classifications under GASB No. 54.

December 13, 2011

2


3


Management’s Discussion and Analysis As management of the City of Wixom, Michigan, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2011. We encourage readers to consider the information presented here in conjunction with the City’s financial statements.

Financial Highlights

As discussed in further detail in this discussion and analysis, the following represents the most significant financial highlights for the year June 30, 2011: For governmental activities (General Fund and other funds), the current assets of the City

exceed its current liabilities at the close of June 30, 2011 by $9,842,234, which may be used to meet the governmental ongoing obligations to citizens and creditors.

For business-type activities (Water and Sewer Utility Systems), the current assets of the City exceed its current liabilities at the close of June 30, 2011 by $9,316,217, which may be used to meet the business-type ongoing obligations to citizens and creditors.

Total net assets related to the City’s governmental activities decreased by $1,562,818, while the net assets related to the City’s business-type activities decreased by $872,512.

At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $9,573,342, a decrease of $1,788,834. The decrease in fund balance is primarily due to total expenditures exceeding total revenues for all governmental funds by $1,788,834 which provided resources for assistance in Local Roads Capital Program to be used for road projects ($1,011,584), assistance in Safety Bike Path Program projects ($180,937), assistance for DPW operating expenditures for road operations ($223,406), assistance in funding of capital improvement projects through the City’s five year capital improvement plan ($245,463), and the payment of debt service.

The City’s total debt during the fiscal year decreased from $22,105,678 to $19,542,725, a decrease of $2,562,953, which represents payments of outstanding debt.

Using this Annual Report

This annual report consists of a series of financial statements: (1) management’s discussion and analysis (this section), (2) government-wide financial statements, (3) fund financial statements, (4) notes to the financial statements, (5) required supplemental information, and (6) other supplemental information. The government-wide financial statements include the statement of net assets and the statement of activities, which provide information about the activities of the City of Wixom as a whole and present a longer-term view of the City of Wixom finances. This longer-term view uses the accrual basis of accounting so that it can measure the cost of providing services during the current year, and whether the taxpayers have funded the full cost of providing government services. Both statements are used to indicate and monitor the overall financial health of the City.

4


Management’s Discussion and Analysis (Continued)

The fund financial statements present a short-term view; they tell us how the taxpayers’ resources were spent during the year, as well as how much is available for future spending. Fund financial statements also report the City of Wixom’s operations in more detail than the government-wide financial statements, by providing information about the City of Wixom’s most significant funds. Some of these funds are mandated by federal and State law and bond covenants. The City Council establishes other funds to control and manage funds for particular purposes or to show it complies with legal requirements. The fiduciary fund statements provide financial information about activities for which the City of Wixom acts solely as a trustee or agent for the benefit of those outside of the government. These assets are restricted in purpose and do not represent discretionary assets of the City, and so these assets are not included in the governmental-wide financial statements.

The notes to the financial statements are provided to give the reader additional information that is important to a full understanding and disclosure of the financial data provided for the government-wide and fund financial statements.

The additional required and other supplementary information follows the basic financial statements that further explains and supports the information in the financial statements including budgetary comparison schedules and information for the General Fund and other major funds and schedules of non-major funds in fund financial statement format.

The City of Wixom as a Whole

As noted before, the City’s combined net assets decreased by approximately -2.5 percent from a year ago, decreasing from $100,729,463 to $98,294,133. A review of the governmental activities, separately from the business-type activities, shows a decrease of $1,562,818 in net assets which includes a increase in capital assets of $1,007,623, a decrease by $1,196,424 in reserves for major and local roads, a change in debt service and deferred revenue SAD by $876,856, and a reduction in unrestricted assets $562,729. Further reasons are shown below along with diligence in the area of expenditure control and disciplined budgeting practices.

Category Net ChangeIncrease in net investment in capital assets 1,007,623 Decrease in reserves for street and highway programs (1,196,424) Decrease capital projects expenditure reserves (14,672) Increase in special agency reserves 37,621 Other Purpose - Land Acquisition Fund (551) Other Purpose - Forfeiture Fund 11,172 Other Purpose - Other Funds 31,998 Change in debt service funds and deferred revenue for SAD (876,856) Change in unrestricted net assets (562,729) Net Change to Net Assets-Statement of Activities (1,562,818)

5


Management’s Discussion and Analysis (Continued) The business-type activities experienced a $872,512 decrease in net assets. This was primarily due to operating expenditures exceeding operating revenues by $1,665,145, contributions of water and sewer lines by developers of $83,940, and nonoperating revenues in the amount of $708,693. The following table shows, in a condensed format, the net assets as of the current date and compared to the prior year:

Governmental Activities Business-type Activities Total

2011 2010 2011 2010 2011 2010

Assets:

Current assets 12,597,943$ 15,925,521$ 10,982,972$ 13,110,679$ 23,580,915$ 29,036,200$

Capital Assets 42,796,883 43,074,759$ 54,314,667 54,042,509$ 97,111,550 97,117,268

Noncurrent assets - - 402,962 402,394$ 402,962 402,394

Total assets 55,394,826 59,000,280 65,700,601 67,555,582 121,095,427 126,555,862

Liabilities:

Current liabilities 2,755,709 3,572,479 1,666,755 1,687,021 4,422,464 5,259,500$

Long-term liabilities 9,354,118 10,540,065 9,064,631 10,026,834 18,418,749 20,566,899

Total liabilities 12,109,827 14,112,544 10,731,386 11,713,855 22,841,213 25,826,399

Net assets:

Invested in capital assets -

Net of related debt 32,746,883 31,739,260 44,821,942 43,611,831 77,568,825 75,351,091

Restricted 7,374,394 9,382,106 402,962 402,394 7,777,356 9,784,500

Unrestricted (deficit) 3,203,641 3,766,370 9,744,311 11,827,502 12,947,952 15,593,872

Total net assets 43,324,918$ 44,887,736$ 54,969,215$ 55,841,727$ 98,294,133$ 100,729,463$

The largest portion of the City’s net assets (79 percent) represents its investment in capital assets (i.e., land, buildings, vehicles, equipment, water and sewer utility systems, and road infrastructure); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending. Although the City’s investments in its capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Net assets of $7,777,356 represent resources that are subject to external restriction on how they may be used due to legal restrictions. The remaining unrestricted assets of $12,947,952 may be used to meet the government’s ongoing obligations to citizens and creditors.

6



At the end of the current fiscal year, the City has experienced a reduction in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities.

Governmental Activities Business-type Activities Total

2011 2010 2011 2010 2011 2010

Revenue

Program revenue:Charges for services 1,886,233$ 1,644,794$ 2,904,070$ 2,810,648$ 4,790,303$ 4,455,442$ Operating grants and contributions 757,355 763,095 - - 757,355 763,095 Capital grants and contributions 225,125 122,938 83,940 93,708 309,065 216,646

General revenue: - - Property taxes 7,576,257 8,649,835 900,066 1,083,578 8,476,323 9,733,413 State-shared revenue 923,211 926,088 - - 923,211 926,088 Unrestricted investment earnings 73,164 80,333 73,545 84,393 146,709 164,726 Miscellaneous 285,612 229,751 - - 285,612 229,751

Total revenue 11,726,957 12,416,834 3,961,621 4,072,327 15,688,578 16,489,161

Program ExpensesGeneral government 2,631,376 2,617,704 - - 2,631,376 2,617,704 Public safety 4,511,511 4,444,068 - - 4,511,511 4,444,068 Public works 4,373,501 4,415,449 - - 4,373,501 4,415,449 Health and welfare 470,194 479,333 - - 470,194 479,333 Recreation and culture 857,384 807,578 - - 857,384 807,578 Interest on long-term debt 445,809 560,704 264,918 290,132 710,727 850,836 Water and sewer - - 4,569,215 4,294,373 4,569,215 4,294,373

Total program expenses 13,289,775 13,324,836 4,834,133 4,584,505 18,123,908 17,909,341

Change in Net Assets (1,562,818)$ (908,002)$ (872,512)$ (512,178)$ (2,435,330)$ (1,420,180)$

Governmental Activities The City of Wixom’s total governmental revenues decreased by $689,877 (-5.6 percent decrease), which was primarily due to property taxes declining by $1,073,578 (General Fund -$200,155, Local Roads Capital Program Fund -$110,286, Safety Bike Path Fund by -$29,745, Major Road Debt by -$97,364, DPW/Fire Debt by -$24,243, DDA by -$16,190, Special Assessment by -$546,788, Other funds by -$48,807) while program revenues increased by $241,439 in the areas of Charges for Services, mostly in Building Permits & Fees and Development Fees, and Capital Grants and Contribution increased by $102,187 (related to CDBG Grants for bike path improvements, lighting improvement grants for the downtown area, and Tri-Party Grants for road improvements); and an increase in Miscellaneous Revenue of $55,861, mostly in franchise fees and other various miscellaneous revenues. The continued effects of a slow down in the state and national economies could still be felt along with the State of Michigan’s budget problems.

7



$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Dol

lar

Am

ount

City of Wixom - Revenue by Source Governmental Activities FY11 & FY10

Charges Operating Grants/Contrib Capital Grants/Contrib Property Taxes State-Shared Revenue Investment Earnings Miscellaneous

Charges $1,886,233 $1,644,794

Operating Grants/Contrib 757,355 763,095

Capital Grants/Contrib 225,125 122,938

Property Taxes 7,576,257 8,649,835

State-Shared Revenue 923,211 926,088

Investment Earnings 73,164 80,333

Miscellaneous 285,613 229,751

2011 2010

8



2,63

1,37

6

4,51

1,51

1

4,37

3,50

1

470,

194 85

7,38

4

445,

809

2,61

7,70

4

4,44

4,06

8

4,41

5,44

9

479,

333

807,

578

560,

704

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Dol

lar

Am

ount

City of Wixom-Expenses by Function-Governmental Activities FY11 & FY10

General Gov

Public Safety

Public Works

Health and welfare

Recreation andCulture

Interest on long-term debt

General Gov 2,631,376 2,617,704

Public Safety 4,511,511 4,444,068

Public Works 4,373,501 4,415,449

Health and welfare 470,194 479,333

Recreation and Culture 857,384 807,578

Interest on long-term debt 445,809 560,704

2011 2010

9



Business-type Activities

The City of Wixom’s business-type activities consist of the Water and Sewer Fund. The City provides its residents water, which it purchases from the City of Detroit Water System. Approximately 49% of the City’s water operating expense is related to the City of Detroit’s wholesale charge for water service. The capital contribution for lines from developers decreased from $93,708 to $83,940. The City provides sewage treatment through a City owned and operated sewage treatment plant. The City contracts out its water and sewer operational services to United Water.

1,848,491

32,063

899,570

15,929

1,879,168

105,853

1,083,001

14,533

2,138,574

218,542

1,069,321

8,678

1,055,579

51,877

57,616

931,480

(12,145)

69,860

870,339

100,605119,710

(100,000)

400,000

900,000

1,400,000

1,900,000

2,400,000

Dol

lar

Am

ount

City of Wixom-Water and Sewer Revenue Comparison FY11, FY10, & FY09

Charges For Service

Capital Grants/Contrib

Property Taxes

Investment Earnings

Charges For Service 1,848,491 1,879,168 2,138,574 1,055,579 931,480 870,339

Capital Grants/Contrib 32,063 105,853 218,542 51,877 (12,145) 100,605

Property Taxes 899,570 1,083,001 1,069,321 496 577 123

Investment Earnings 15,929 14,533 8,678 57,616 69,860 119,710

Water 11 Water 10 Water 09 Sewer 11 Sewer 10 Sewer 09

The Water Fund’s operating expenses increased by $200,129 from fiscal year 2010 with increase in Detroit Water Charges. The Sewer Fund’s operating expenses increased by $74,713 from fiscal year 2010 which was due to an increase in electrical utilities by $39,159, an increase in sludge removal costs by $23,988, an increase in depreciation by $29,977, a decrease in contract operation costs by $28,277, while other operating expenses increased.

10



264,918

2,542,313

290,132

2,342,184

314,756

2,446,972

-

2,026,902

-

1,952,189

-

1,819,319

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Dol

lar

Am

ount

City of Wixom-Water & Sewer Expenses FY11, FY10, & FY09Interest onlong-term debt

OperatingExpenses

Interest on long-term debt 264,918 290,132 314,756 - - -

Operating Expenses 2,542,313 2,342,184 2,446,972 2,026,902 1,952,189 1,819,319

Water 11 Water 10 Water 09 Sewer 11 Sewer 10 Sewer 09

The City of Wixom’s Funds Our analysis of the City of Wixom’s major funds begins on page 16, following the government-wide financial statements. The fund financial statements provide detail information about the most significant funds, not the City as a whole. The City Council creates funds to help manage money for specific purposes as well as to show accountability for certain activities, such as State of Michigan Act 51 major and local road revenue sharing, accounting for drug forfeiture revenue and expenditures, capital projects, and voted debt retirement funds. The City of Wixom’s major funds for 2011 include the General Fund, the Major Road Act 51 Fund, the Local Road Act 51 Fund, the Local Road Capital Program Fund, the Capital Improvement Fund, the Major Road Debt Fund, and the Special Assessment Fund.

11


Management’s Discussion and Analysis (Continued) The General Fund pays for most of the City of Wixom’s governmental services. The most significant expenses are public safety (police and fire), which incurred costs of $4,511,511, or 34 percent of total governmental funds, and for public works, which incurred expenses of $4,373,501, or 33 percent of total governmental funds in fiscal year 2011. The general government expense was $2,631,376 or 20% of total governmental activities. A major part of the public works expenses related to the completion of road projects at Wexford Mews, Alpha Tech Traffic Signal, Village Center pavement improvements, Pontiac Trail improvements, and other pavement preservation improvements. The public works services are supported by the Major Street Capital Program Fund, the Local Road Capital Fund, the Safety Bike Path Fund, and the General Fund. The general operating millage levied by the City supports not only these functions, but other major operating costs such as funding general government administration, recreation and cultural programs, and other activities. The general operating millage does not support other costs such as water and sewer, and General Obligation Bond issues supported by millage or fees.

General Fund Budgetary Highlights

Over the course of the year, the City of Wixom amended the budget to take into account unanticipated events during the year. The most significant of these events during fiscal year 2011 related to the merging of the General Fund and the Budget Stabilization Fund in accordance with GASB Statement 54, to adjust the capital improvement program to recognize additional grants and expenditures, to reprogram Community Development Block Grant program, and to modify major and local Act 51 budgets at year end to estimated actual costs. The differences between the original budget and the final amended budget for revenues was 4/10ths of 1% and the overall expenditures remain the same for FY2011. Budget amendments between departments occurred to allocate health insurance claims for the City’s Health Reimbursement Accounts.

The differences between the final amended budget and the actual amounts were significant in the revenue and expenditure areas. Revenues received were lower than budgeted by ($94,387) or less than 1.0%, while expenditures were 6.1 percent less than budgeted ($593,597). As a result, the General Fund continues to maintain a fund balance of $3,281,850, (General Fund $1,907,363 combined with Budget Stabilization Fund $1,374,487) which will help the City to maintain its current level of services. According to the Financial Action Plan, approximately $503,480 will be transferred from the General Fund back to the Budget Stabilization Fund in FY 2012 to assure the General Fund’s Fund Balance is held at 15%.

Other Funds Highlights There are six major funds, excluding the General Fund, which are classified as special revenue funds (3), debt service funds (2), capital projects funds (1). It should be noted fund balances in these funds must be used for their intended purposes. The changes in fund balance were especially significant with a planned reduction in the Local Road Capital Program ($1,011,584) due to road construction projects exceeding revenues, with planned reduction in the Capital Improvement Fund ($245,463) due to project expenditures exceeding revenues, with the operating expenditures exceeding State Act 51 revenues in the Major and Local Act 51 Funds, combined amount ($217,406), and Debt reductions due to payment of debt service and a defeasance in the Special Assessment Fund.

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During the year, the combined fund balance for the City’s nonmajor governmental funds decreased from by ($221,944). The major changes in fund balance were due to planned reductions in the Safety Bike Path program ($180,937), reductions due to debt service expenditures ($176,626), increases in fund balance in the Special Agency Fund by $49,505 and Solid Waste Fund by $65,398 (due to changing the collection process). Because resources for these funds are, for the most part, limited by specific purposes, their fund balances are not available for general government use.

Capital Assets and Debt Administration Capital Assets The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2011 amounts to $97,111,550; net of accumulated depreciation. Investment in Capital assets net of related debt in governmental activities show net capital assets at $32,746,883 and business-type activities show net capital assets at $44,821,942. This investment includes a wide range of capital assets, including local and major streets, bike paths, and sidewalk infrastructure. This is the seventh year the City is reporting its infrastructure assets in accordance with GASB Statement No. 34. The City follows the State of Michigan guidelines for the useful life of its road infrastructure.

Road Infrastructure - Changes in Useful Life of Assets Category Previous Useful Life New Useful Life

Local Roads Asphalt 15 Yrs, Concrete 20 Yrs Asphalt 20 Yrs, Concrete 30 Yrs Major Roads Asphalt 15 Yrs, Concrete 20 Yrs Asphalt 20 Yrs, Concrete 30 Yrs Drain Improvements 50 Years 50 Years Sidewalks 25 Years 30 Years Bikepaths 25 Years 30 Years This year’s major capital improvements included the following:

Vehicle purchases included the purchase of new police vehicles for $63,011,

Road improvements included (1) major road capital improvements of $21,540 (2) other local road and major road maintenance capital improvements of $1,898,084 (3) bike path improvements of $397,798.

Parks and recreation improvements amounted to $8,667, which included improvements to various City parks.

Other special purchases included parking lot reconstruction for $27,998, replacement of fire gear for $15,376, replacement of AEDs for $13,992, purchase and installation of In-Car terminals for Police vehicles for $57,751, street light improvements for $75,865, and DPW equipment for $26,000.

For more detail on Capital Assets please see Note 5 of the Notes to the Financial Statements.

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Long-term Debt At the end of the fiscal year, the City had total long-term bonds outstanding of $19,542,725. Of this amount, $10,050,000 comprises debt for governmental activities while $9,492,725 comprises debt for business-type activities. This debt is reported as a liability in the governmental activities and business-type activities in the statement of net assets. The City’s total debt during the fiscal year decreased from $22,105,678 to $19,542,725, a decrease of $2,562,953, which represents payments of outstanding debt.

State statutes limit the amount of the general obligation debt a governmental entity may issue to 10 percent of its total assessed valuation. The current debt limitation for the City is $70,718,522 which is significantly in excess of the City’s outstanding general obligation debt. The City has an A+ rating for general obligation unlimited and limited tax bonds from Standards & Poor’s. Moody’s rated the City’s general obligation unlimited tax bonds at A1 and the general obligation limited tax bonds at A2. For more detail on Capital Assets please see Note 5 and Long-term Debt please see Note 7 of the Notes to the Financial Statements.

Economic Factors and Next Year’s Budgets and Rates

The diverse tax mix of residential, manufacturing, office, service, technology, and retail-recreational centers reduces Wixom’s impact of adverse economic cycles and provides a stable environment for new investment. The City also continues to have a strong, diversified tax base. A total of 38% of the tax roll is residential and apartments. The remaining 62% is nonresidential, composed of 31% commercial, 14% industrial and 17% personal property. The City is approximately 80 percent developed. The State Tax Commission requested a procedural change for the 2010 Assessment year which reclassified a significant portion of industrial to commercial property classification. The region, which includes the City of Wixom and the surrounding area of Oakland County, has 14.3% of all people employed in Michigan (2003). More than 784,000 people work in Oakland County’s 44,512 business establishments and government agencies with 35% of Global Fortune 500 companies having business locations in Oakland County. The City continues to attract businesses of national and international importance. It is estimated that the future taxable values will decrease due to the decline in values in the real estate market. The estimated change in taxable value over the next two years could range from a decline of 5%-10%. This is predicated on the assumption that the downward trend in the housing market will continue. As discussed with City Council, the Five Year Action Plan will need modification to assist in softening the impact of this trend on the City’s budget.

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Efforts continue to bring about the repurposing of the Wixom Ford Assembly Plant’s 318 acre site. In a joint meeting of the City Council and Planning Commission, Ford Development CEO, Donna Inch, presented a new concept plan for the 318 acre former Ford-Wixom Assembly Plant site. The original 2009 Redevelopment Plan has been downsized due to the dramatic change over the last two (2) years in the global economy. Clairvoyant Energy currently intends to continue its pursuit of the development of 500,000 square feet of the 4.7 million square foot plant; with the balance of the plant split into individual industrial/manufacturing condominium units, or demolished in sections as conditions dictate, which is being proposed as a renewable energy park by Clairvoyant Energy (Santa Barbara, CA) and Xtreme Power (Kyle, TX). These two companies continue to work at federal, state and local levels and with Ford Motor Company to obtain the backing needed for this huge undertaking which could bring over 4,000 jobs to Oakland County. The current difficult credit market and complexity of the transactions are making it difficult to finalize.

State Shared Revenue: Though the State increased their income tax rate from 3.9% to 4.35% and raised their sales tax to 6% on certain services, the State still has severe budget problems. Over the last ten years the City’s State Shared revenue has decreased from $1,372,133 (10/31/2001) to $915,590 (10/31/2011) or by -$456,543.

Fiscal Year (State) Statutory Constitutional Total % Change

Dollar Amount

10/31/2001 511,469 860,664 1,372,133 10/31/2002 460,228 869,432 1,329,660 -3% (42,473) 10/31/2003 384,318 884,153 1,268,471 -5% (61,189) 10/31/2004 265,494 874,548 1,140,042 -10% (128,429) 10/31/2005 232,197 895,419 1,127,616 -1% (12,426) 10/31/2006 204,406 910,663 1,115,069 -1% (12,547) 10/31/2007 190,121 891,741 1,081,862 -3% (33,207) 10/31/2008 160,349 921,513 1,081,862 0% - 10/31/2009 160,349 869,098 1,029,447 -5% (52,415) 10/31/2010 78,092 837,498 915,590 -11% (113,857) 10/31/2011 67,360 848,230 915,590 0% -

Total (456,543)

Public Act 51 Revenue: The City may transfer excess funds from their Act 51 Major Roads Fund to their Act 51 Local Roads Fund if excess revenues over expenditures exist. In the past, it has been the City’s practice to transfer the remaining Act 51 Major Roads Fund revenue to support the Act 51 Local Roads Fund. The change in law permits a higher transfer percent if the City qualifies. The City will need to adopt an Asset Management Plan for their major and local roads. The Asset Management Plan is in the process of being prepared and will likely be completed by the summer of 2012. The City will need to adopt a resolution stipulating that they will adhere to the provisions and requirements of the new law. It has been common practice as shown below for the City to utilize this law to assist in maintaining the City’s local roads.

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Amended Original Budget Budget Percent

Description 2010-2011 2011-12 Difference ChangeLegislative 17,626 17,626 - 0.00%City Manager 488,067 482,098 (5,969) -1.22%Assessor 162,537 162,992 455 0.28%Building 430,865 430,385 (480) -0.11%Legal Counsel and Assistance 77,100 73,000 (4,100) -5.32%Clerks 185,564 175,896 (9,668) -5.21%Information Systems 134,759 131,907 (2,852) -2.12%Financial Administration 433,742 418,095 (15,647) -3.61%General Operating 455,871 564,555 108,684 23.84%Building Maintenance 61,970 61,970 - 0.00%Cultural Center 328,486 324,866 (3,620) -1.10%Fire 919,586 912,667 (6,919) -0.75%Police 3,258,770 3,098,219 (160,551) -4.93%DPW 1,584,191 1,553,127 (31,064) -1.96%Board of Appeals 3,900 3,900 - 0.00%Board of Review 1,200 1,200 - 0.00%Planning Committee 34,800 34,300 (500) -1.44%Senior Citizen Committee 60,392 60,392 - 0.00%Community Service - P&R 451,028 449,481 (1,547) -0.34%Interfund Transfers 573,500 359,780 (213,720) -37.27%

EXPENDITURE TOTAL 9,663,954 9,316,456 (347,498) -3.60%

The General Fund fiscal year 2012 budget for next year calls for a decrease in overall expenditures to $9,316,456 compared to the amended budget for fiscal year 2011 of overall expenditures of $9,663,954. This is an approximate -3.60 percent decrease or $347,498 in total General Fund budgeted expenditures over the previous year. This decrease is principally due to placing a moratorium on employer OPEB contribution for FY2012 and other reductions in expenditures across most all departments. Budgeted revenues equal budgeted expenditures for FY2011-2012 budget, along with the anticipated contribution of $599,792 from the Budget Stabilization Fund. During the 2011-2012 fiscal year, administration will continue to monitor revenues and expenditures and attempt to expend less than authorized by the budget.

Contacting the City of Wixom Management

This financial report is intended to provide our citizens, taxpayers, customers, and investors with a general overview of the City of Wixom’s finances and to show the City of Wixom’s accountability for the money it receives. If you have questions about this report or need additional information, we welcome you to contact the Clerk’s office or the Finance Office, City of Wixom, 49045 Pontiac Trail, Wixom, Michigan 48393.

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17

City of Wixom, MichiganStatement of Net Assets June 30, 2011

Governmental Business-type ComponentActivities Activities Total Units

AssetsCash and investments ( Note 3) 10,175,736$ 9,535,211$ 19,710,947$ 3,243,222$ Receivables - Net (Note 4) 2,610,973 955,886 3,566,859 1,835 Internal balances (369,726) 369,726 - - Other assets 180,960 - 180,960 - Inventories 39,919 122,149 162,068 - Restricted assets ( Note 8) - 402,962 402,962 - Capital assets not being depreciated-Land (Note 5) 5,076,279 - 5,076,279 154,296 Capital assets - Net of accumulated depreciation (Note 5) 37,720,604 54,314,667 92,035,271 222,756

Total assets 55,434,745$ 65,700,601$ 121,135,346$ 3,622,109$

LiabilitiesAccounts payable 870,499 639,891 1,510,390 14,499 Accrued and other liabilities 162,535 64,092 226,627 - Deferred Revenue - Unearned (Note 4) 149,000 - 149,000 - Customer deposits - 534,678 534,678 - Compensated absences:

Due within one year 433,675 - 433,675 - Due in more than one year 274,113 - 274,113 -

Net OPEB obligation-Due in more than one year (Note 11) 170,005 170,005 Long-term debt (Note 7):

Due within one year 1,140,000 962,772 2,102,772 - Due in more than one year 8,910,000 8,529,953 17,439,953 44,000

Total liabilities 12,109,827 10,731,386 22,841,213 58,499

Net AssetsInvested in capital assets - Net of related debt 32,746,883 44,821,942 77,568,825 333,052 Restricted (Note 12)

Streets and highways 2,536,085 - 2,536,085 - Special agency-development 1,203,755 - 1,203,755 - Other purpose 1,193,944 402,962 1,596,906 - Debt service funds 2,440,610 - 2,440,610 -

Unrestricted 3,203,641 9,744,311 12,947,952 3,230,558

Total net assets 43,324,918 54,969,215 98,294,133 3,563,610

Total liabilities and fund balances 55,434,745$ 65,700,601$ 121,135,346$ 3,622,109$

The Notes to Financial Statements are an Integral Part of This Statement

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City of Wixom, MichiganStatement of Activities Year Ended June 30, 2011

Program Revenues

ExpensesCharges for

Services

Operating Grants and

Contributions

Capital Grants and

Contributions

Functions/Programs Primary government:

Governmental activities: General government 2,631,376$ 237,507$ 77,993$ -$ Public safety 4,511,511 140,345 - 9,000 Public works 4,373,501 769,118 679,362 216,125 Health and welfare 470,194 486,895 - - Recreation and culture 857,384 252,368 - - Interest on long term-debt 445,809 - - -

Total governmental activities 13,289,775 1,886,233 757,355 225,125

Business-type activities:Water 2,807,231 1,848,491 - 32,063 Sewer 2,026,902 1,055,579 - 51,877

Total business-type activities 4,834,133 2,904,070 - 83,940

Total primary government 18,123,908$ 4,790,303$ 757,355$ 309,065$

Component units:Downtown Development Authority 252,938$ -$ -$ -$ Local Development Finance Authority 17,550 - - -

- - - -Total component units 270,488$ -$ -$ -$

General revenues: Property taxes

State-shared revenues (Unrestricted)Unrestricted investment earnings

Miscellaneous

Change in Net Assets

Net Assets - Beginning of year

Net Assets - End of year


Total general revenue and special item

19

Net (Expense) Revenue and Changes in Net Assets

Governmental Activities

Business-type Activities Total

Component Units

(2,315,876)$ -$ (2,315,876)$ -$ (4,362,166) - (4,362,166) - (2,708,896) - (2,708,896) -

16,701 - 16,701 - (605,016) - (605,016) - (445,809) - (445,809) -

(10,421,062) - (10,421,062) -

- (926,677) (926,677) - - (919,446) (919,446) -

- (1,846,123) (1,846,123) -

(10,421,062)$ (1,846,123)$ (12,267,185)$ -$

-$ -$ -$ (252,938)$ - - - (17,550) - - - --$ -$ -$ (270,488)$

7,576,257 900,066 8,476,323 230,782 923,211 - 923,211 -

73,164 73,545 146,709 10,853 285,612 - 285,612 2,000

8,858,244 973,611 9,831,855 243,635

(1,562,818) (872,512) (2,435,330) (26,853)

44,887,736 55,841,727 100,729,463 3,590,463 43,324,918$ 54,969,215$ 98,294,133$ 3,563,610$

Primary Government

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City of Wixom, Michigan Governmental Funds Balance Sheet June 30, 2011

Major Road Local Road Local RoadGeneral Act 51 Act 51 Capital Program

AssetsCash and investments 4,928,857$ -$ -$ 1,822,834$ Receivables - Net 287,427 - - 73,293 Due from governmental units 24,268 76,383 32,898 - Other assets 92,795 - - - Inventories 39,919 Due from other funds 661,334 - - -

Total assets 6,034,600$ 76,383$ 32,898$ 1,896,127$

Liabilities

Accounts payable 615,729$ -$ -$ 119,426$ Accrued and other liabilities 84,753 - - 100 Advance from other funds (Note 6) - - - - Deferred Revenue - - - - Due to other funds 2,052,268 76,383 32,898 7,261

Total liabilities 2,752,750 76,383 32,898 126,787

Fund balancesNonspendable:

Prepaid Expense 92,795 - - - Inventories 39,919 - - -

Restricted:Land acquisition - - - - Police forfeitures - - - - Roads & Bike Paths - - - 1,769,340 Solid waste activities - - - - Development contracts - - - - Debt - - - -

Committed:Cemetery - - - - Budget Stabilization 1,374,487 - - -

Assigned:Capital Project Usage - - - -

Unassigned:General Fund 1,774,649 - - - Bike Path - - - - Total fund balances 3,281,850 - - 1,769,340

Total liabilities and fund balances 6,034,600$ 76,383$ 32,898$ 1,896,127$

Net assets of governmental activities


Accrued liabilities and other liabilities reported in the statement of activities and are not reported as expenditures in the governmental funds

Long-term liabilities are not due and payable in the current period and are not reported in the funds

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and are not reported in the fundsRevenue reported in the statement of activities that does not provide current financial resources and is not reported as revenue in the governmental funds (GASB #33)

Deferred Revenue not reported as revenue in the governmental funds

Net other postemployment benefit asset reported in the statement of activities and are not reported in the governmental funds

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Other Nonmajor Total Capital Major Road Special Governmental Governmental

Improvement Debt Assessment Funds Funds

795,641$ 32,647$ 236,450$ 2,359,305$ 10,175,734$ - - 2,321,250 7,542 2,689,512 - - - - 133,549 - - 88,165 - 180,960

39,919 594,261 - - 1,173,106 2,428,701

1,389,902$ 32,647$ 2,645,865$ 3,539,953$ 15,648,375$

17,769$ 18,666$ -$ 98,909$ 870,499$ - - - 4 84,857

619,727 - - - 619,727 - - 2,321,250 - 2,321,250 - 6,387 - 3,503 2,178,700

637,496 25,053 2,321,250 102,416 6,075,033

- - - - 92,795 - - - - 39,919

- - - 978,157 978,157 - - - 33,906 33,906 - - - 774,310 2,543,650 - - - 93,431 93,431 - - - 1,203,755 1,203,755 - 7,594 324,615 273,093 605,302

- - - 88,450 88,450 - - - - 1,374,487

752,406 - - - 752,406

- - - - 1,774,649 - - - (7,565) (7,565)

752,406 7,594 324,615 3,437,537 9,573,342

1,389,902$ 32,647$ 2,645,865$ 3,539,953$

42,796,883

(212,088)

(77,676)

(170,005)

2,172,250

(10,757,788)

43,324,918$

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City of Wixom, MichiganGovernmental FundsStatement of Revenue, Expenditures, and changes in Fund BalancesYear Ended June 30, 2011

Major Road Local Road Local RoadGeneral Act 51 Act 51 Capital

RevenuesProperty taxes 5,792,459$ -$ -$ 808,223$ Solid waste collection - - - - Federal grants - - - - State revenue 1,070,137 473,414 203,898 - County grants - - - 73,293 Component unit contributions - - - - Charges for services 598,047 - - - Fines and forfeits 60,635 - - - Licenses and Permits 298,706 - - - Rental income 91,960 - - - Donations - - - - Interest 65,576 - - 2,935 Other revenue 326,224 - - 2,049

8,303,744 473,414 203,898 886,500

ExpendituresCurrent: Legislative 15,241 - - - City Manager 487,847 - - - Assessor 159,970 - - - Legal assistance 59,559 - - - Clerk 178,991 - - - Information systems 134,465 - - - Financial administration 432,722 - - - General operating 408,335 - - - Building maintenance 54,058 - - - Boards and commissions 78,158 - - - Cultural center 299,399 - - - Community services/recreation 428,752 - - - Department of Public Service - - - - Fire Department 889,929 - - - Police department 3,012,968 - - - Building department 407,586 - - - Solid waste - - - - Public works 548,160 487,430 413,288 - Land acquisition - - - -

Cemetery - - - - Health Benefits - Retirees 221,620 - - -

Other capital improvements - - - 1,898,084 Debt service:

Principal - - - - Defeasance - - - - Interest & Fees - - - -

7,817,760 487,430 413,288 1,898,084 Excess of Revenues Over (Under) Expenditures 485,984 (14,016) (209,390) (1,011,584)

Other Financing Sources (Uses)

Transfers in 11,884 14,016 209,390 - Transfers out (575,286) - - - Total Other Financing Sources (Uses) (563,402) 14,016 209,390 -

Net Change in Fund Balances (77,418) - - (1,011,584)

Fund Balances - Beginning of Year (Note 15) 3,359,268 - - 2,780,924 Fund Balances - End of Year 3,281,850$ -$ -$ 1,769,340$


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Capital Major Road Special Other Nonmajor Total Governmental Improvement Debt Assessment Governmental Funds Funds

-$ 803,116$ -$ 491,661 7,895,459$ - - - 524,747 524,747 - - - 64,124 64,124

75,413 - - - 1,822,862 - - - - 73,293 - - - 245,487 245,487 - - - - 598,047 - - - - 60,635 - - - 322,366 621,072 - - - 160 92,120 - - - 5,686 5,686 616 659 358 3,638 73,782

9,000 - - 55,028 392,301 85,029 803,775 358 1,712,897 12,469,615

- - - - 15,241 - - - 3,634 491,481 - - - - 159,970 - - - - 59,559 - - - - 178,991 - - - - 134,465 - - - - 432,722

6,795 500 500 15,131 431,261 - - - - 54,058 - - - - 78,158

3,668 - - - 303,067 8,667 - - - 437,419 2,240 - - - 2,240

57,366 - - - 947,295 124,774 - - 3,950 3,141,692

- - - 291,572 699,158 - - - 470,194 470,194

101,864 - - 50,878 1,601,620 - - - 1,492 1,492 776 - - - 776 - - - - 221,620 - - - 419,338 2,317,422

- 805,000 400,000 420,000 1,625,000 - - 11,476 - 11,476

24,342 66,221 92,857 258,652 442,072 330,492 871,721 504,833 1,934,841 14,258,449

(245,463) (67,946) (504,475) (221,944) (1,788,834)

376,099 - - - 611,389 - - - (36,103) (611,389)

376,099 - - (36,103) -

130,636 (67,946) (504,475) (258,047) (1,788,834)

621,770 75,540 829,090 3,695,584 11,362,176 752,406 7,594$ 324,615$ 3,437,537 9,573,342$

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City of Wixom, MichiganGovernmental FundsReconciliation of the Statement of Revenue, Expenditures, and Changes in Fund Balances of Governmental Fundsto the Statement of ActivitiesYear Ended June 30, 2011

Amounts reported for governmental activities in the statement of activities are different because:

Net Change in Fund Balances - Total Governmental Funds (1,788,834)$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures; in the statement of activities, these costs are allocated over their estimated useful lives as depreciation. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital outlay 2,743,520 Depreciation expense (3,011,664) Excess of depreciation expense over capital outlay (268,143)

Revenue reported in the statement of activities that does not provide current financial resources and is not reported as revenue in the governmental funds (GASB No. 33) (732,925)

Accrued interest payable is recorded when due in governmental funds 7,739

Repayment of bond principal is an expenditure in the governmental funds, but not in the statement of activities (where it reduces long-term debt) 1,625,000

Gain/Loss on Capital Assets (9,733)

Increase in accumulated employee sick and vacation pay are recordedwhen earned in the statement of activities (78,150)

Excess of OPEB liabilities for employee health retirement are recorded when earned in the statement of activities (317,772)

Change in Net Assets of Governmental Activities (1,562,818)$


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City of Wixom, MichiganProprietary FundsStatement of Net Assets June 30, 2011

Water Sewer Total

AssetsCurrent assets:

Cash and cash equivalents 2,445,691$ 7,089,520$ 9,535,211$ Receivable - Net 597,514 358,372 955,886 Advance to other funds (Note 6) - 88,532 88,532 Due from other funds 284,901 - 284,901 Inventories 22,495 99,654 122,149

Total current assets 3,350,601 7,636,078 10,986,679

Noncurrent assets:Advance to other funds (Note 6) - 531,195 531,195 Restricted assets - Other - 402,962 402,962 Capital assets 33,950,325 20,364,342 54,314,667

Total noncurrent assets 33,950,325 21,298,499 55,248,824

Total assets 37,300,926 28,934,577 66,235,503

LiabilitiesCurrent liabilities:

Accounts payable 225,320 414,571 639,891 Accrued interest payable 64,092 - 64,092 Due to other funds - 534,902 534,902 Current portion of long-term debt 962,772 - 962,772

Total current liabilities 1,252,184 949,473 2,201,657

Noncurrent liabilities:Customer's deposit - 534,678 534,678 Long-term debt - Net of current portion 8,529,953 - 8,529,953

Total noncurrent liabilities 8,529,953 534,678 9,064,631

Total liabilities 9,782,137 1,484,151 11,266,288

Net AssetsInvestment in capital assets - Net of related debt 24,457,600 20,364,342 44,821,942 Restricted - Escrow Holdings - 402,962 402,962 Unrestricted 3,061,189 6,683,122 9,744,311

Total net assets 27,518,789$ 27,450,426$ 54,969,215$


Enterprise Fund

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City of Wixom, MichiganProprietary FundsStatement of Revenues, Expenses and Changes in Net AssetsYear Ended June 30, 2011

Water Sewer TotalOperating Revenues

Water sales 1,848,491$ -$ 1,848,491$ Sewage disposal - 1,055,579 1,055,579

Total operating revenues 1,848,491 1,055,579 2,904,070

Operating ExpensesCost of water 1,671,253 1,671,253 Cost of sewage disposal - 799,746 799,746 General and administrative 225,002 237,523 462,525 Utilities 17,229 222,719 239,948 Televising and cleaning - 63,381 63,381 Depreciation 628,829 703,533 1,332,362

Total operating expenses 2,542,313 2,026,902 4,569,215

Operating Loss (693,822) (971,323) (1,665,145)

Nonoperating Revenue (Expense) Property taxes 899,570 496 900,066 Interest income 15,929 57,616 73,545 Interest expense (264,918) - (264,918)

Total nonoperating revenue ( expense) 650,581 58,112 708,693

Income (Loss) - Before contributions (43,241) (913,211) (956,452)

Capital Contribution (Refund) (5,782) 51,877 46,095

Lines Donated by Developers 37,845 - 37,845

Total capital contributions 32,063 51,877 83,940

Change in Net Assets (11,178) (861,334) (872,512)

Net Assets - Beginning of year 27,529,967 28,311,760 55,841,727

Net Assets - End of year 27,518,789$ 27,450,426$ 54,969,215$


Enterprise Fund

27

City of Wixom, MichiganProprietary FundsStatement of Cash FlowsYear Ended June 30, 2011 Water Sewer TotalCash Flows from Operating Activities

Receipts from customers 1,841,262$ 1,014,762$ 2,856,024$ Payments to other suppliers (1,664,906) (698,059) (2,362,965) Payments to United Water Operating System (298,738) (613,893) (912,631) Payments for inventory (426) (17,195) (17,621)

Net cash provided by (used in) operating activities (122,808) (314,385) (437,193)

Cash Flows from Noncapital Financing Activities- Internal activities Property taxes - 496 496 Payments received on advance - 88,532 88,532 Receipts from other funds 793,579 275,317 1,068,896

Net cash provided by noncapital financing activities 793,579 364,345 1,157,924

Cash Flows from Capital and Related Financing Activities Property taxes 899,570 - 899,570

Purchase of capital assets (27,231) (1,539,444) (1,566,675) Other deposits-Escrow holdings - 570 570 Connection fees (5,782) 51,877 46,095 Interest paid on long-term debt (271,260) - (271,260) Principal paid on long-term debt (937,953) - (937,953)

Net cash used in capital and related financing activities (342,656) (1,486,997) (1,829,653)

Cash Flows from Investing Activities - Interest received oninvestments 15,929 57,616 73,545

Net Increase/(Decrease) in Cash and Cash Equivalents 344,044 (1,379,421) (1,035,377)

Cash and Cash Equivalents - Beginning of year 2,101,647 8,871,903 10,973,550

Cash and Cash Equivalents - End of year 2,445,691$ 7,492,482$ 9,938,173$

Balance Sheet Classification of Cash and Cash EquivalentsCash and investments 2,445,691$ 7,089,520$ 9,535,211$ Restricted investments (Note 3) - 402,962 402,962

Total cash and cash equivalents 2,445,691$ 7,492,482$ 9,938,173$

Reconciliation of Operating Loss to Net Cash from Operating Activities

Operating loss (693,822)$ (971,323)$ (1,665,145)$ Adjustments to reconcile operating loss to net cash from

operating activities:Depreciation and amortization 628,829 703,533 1,332,362 Changes in assets and liabilities:

Receivables (7,229) (40,817) (48,046) Accounts payable (50,160) 11,417 (38,743) Inventories (426) (17,195) (17,621)

Net cash provided by (used in) operating activities (122,808)$ (314,385)$ (437,193)$

Noncash capital, financing and investing activities – During the year, developers donated $37,845 of water lines to the City.


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City of Wixom, MichiganFiduciary FundsStatement of Net Assets June 30, 2011

Agency Fund-Retirees Trust Fund Trust and(Health Insurance) Agency

Assets Cash and cash equivalents (Note 3) -$ 1,861$ Investment (Note 3) - 320,513 Investment in MERS Pool (Note 3) 3,474,256 - Accounts Receivable - 120,216

Total Assets 3,474,256 442,590 Liabilities

Deposits and other liabilities 54,737 442,590

Total liabilities 54,737 442,590$

Net Assets - Held in trust for employee benefits 3,419,519$


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City of Wixom, MichiganStatement of Changes in Net AssetsYear Ended June 30, 2011

TotalRetirees Trust Fund (Health Insurance)

Additions-Investment Income and ContributionsNet increase in fair value of investments 570,377 Retiree Insurance Contribution - Employee 43,475 Contribution -Employer 221,620 Contribution - Wixom Public Library 34,960

Total additions (reductions) 870,432

DeductionsAudit 750 Insurance Premiums 63,878

Total reductions (additions) 64,628

Net Decrease 805,804

Net Assets Held in Trust for Retiree Health InsuranceBeginning of Year 2,613,715 End of Year 3,419,519$


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City of Wixom, MichiganComponent UnitsStatement of Net Assets June 30, 2011

Downtown Development

Authority

Local Development

Finance Authority Totals

AssetsCash and investments 210,696$ 3,032,526$ 3,243,222$ Accounts Receivable 1,835 - 1,835 Capital assets not being depreciated-Land (Note 5) 154,296 - 154,296

Capital assets - Net of accumulated depreciation (Note 5) 222,756 - 222,756 Total assets 589,583 3,032,526 3,622,109

Liabilities

Accounts payable - 14,499 14,499 Long-term debt 44,000 - 44,000

Total liabilities 44,000 14,499 58,499

Net Assets Investment in capital assets - Net of related debt 333,052 - 333,052

Unrestricted 212,531 3,018,027 3,230,558

Total net assets 545,583$ 3,018,027$ 3,563,610$


31


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City of Wixom, MichiganComponent UnitsStatement of ActivitiesYear Ended June 30, 2011

Program Revenues

ExpensesCharges for

Services

Operating Grants/

Contributions

Capital Grants and

Contributions

Downtown Development Authority - Public works 23,991$ -$ -$ -$ Contribution to City 228,947 - - -

Local Development Finance AuthorityPublic works 17,550 - - -

Total governmental activities 270,488$ -$ -$ -$

General revenues:Property taxesDonationsInterest

Change in Net Assets

Net Assets - Beginning of year Net Assets - End of year


Total general revenues

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Net (Expense) Revenue and Changes in Net Assets

Downtown Development

Authority

Local Development

Finance Authority Total

(23,991)$ - (23,991)$ (228,947) - (228,947)

- (17,550) (17,550)

(252,938) (17,550) (270,488)

230,782 - 230,782 2,000 - 2,000

347 10,506 10,853

233,129 10,506 243,635

(19,809) (7,044) (26,853)

565,392 3,025,071 3,590,463

545,583$ 3,018,027$ 3,563,610$

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City of Wixom

Notes to Financial Statements

Note 1 - Summary of Significant Accounting Policies

The accounting policies of the City of Wixom (the “City”) conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The following is a summary of the significant accounting policies used by the City:

Reporting Entity

The City is governed by an elected seven-member council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Although blended component units are legal separate entities, in substance, they are part of the government’s operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government (see discussion below for description).

Blended Component Units - The Building Authority is governed by a board that is appointed by the City Council. Although it is legally separate from the City, it is reported as if it were part of the primary government because its sole purpose is to finance and construct the City’s public buildings.

Discretely Presented Component Units - The component unit columns in the government-wide financial statements include the financial data of the City’s other component units. They are reported in separate columns to emphasize that they are legally separate from the City. The following component units are included in the reporting entity because the primary government is financially accountable and is able to impose its will on the organization. Financial statements are not issued separately for the component units for the DDA or LDFA.

a. The Downtown Development Authority (DDA) was created to correct and prevent deterioration in the downtown district, encourage historical preservation, and to promote economic growth within the downtown district. The DDA’s governing body, which consists of 11 individuals, is selected by the City Council. In addition, the DDA’s budget is subject to approval by the City Council. The City Council approves the development plans and must approve all modifications to the plan. The City maintains all accounting records for the DDA, whose primary source of funding is from tax increment financing revenues.

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Note 1 - Summary of Significant Accounting Policies (Continued)

b. The Local Development Finance Authority (LDFA) was created to improve the public infrastructure within the central business district of the City. This has included primarily the improvement or construction of roads, drains, and water and sewer transmission lines. The primary source of funding is the capture of incremental tax revenues of the various taxing units (city, county, community college, and others). The LDFA’s governing body, which consists of 22 individuals, is selected by the City Council or appointed by other governmental agencies. In addition, the LDFA’s budget is subject to approval by the City Council.

Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenue. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual Enterprise Funds are reported as separate columns in the fund financial statements.

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Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Agency funds have no measurement focus on the government wide financial statements.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recognized as soon as it is both measurable and available. Revenue is considered to be available if it is collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, expenditures relating to compensated absences, and claims and judgments are recorded only when payment is due.

Revenues are recognized in the accounting period in which they become susceptible to accrual - that is, when they become both measurable and available to finance expenditures of the fiscal period. Measurable means the amount of the transaction can be determined and available means collectible within the 60-day period.

On the governmental funds statements, major sources of revenue considered susceptible to accrual are State-shared revenues, community development block grants, federal and State grants, Act 51 revenues, and interest associated with the current fiscal period, and all are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be available only when cash is received by the government.

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The government reports the following major governmental funds: General Fund - The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. In FY2010-2011 the Budget Stabilization Fund was combined with the General Fund in accordance with GASB 54. The Budget Stabilization Fund was established along with the 5 year Financial Action Plan to assist the City in times when instability occurs in the business cycle or unanticipated events/unexpected emergencies occur which cause a significant downturn in revenues. This can be measured by the magnitude and duration of the revenue shortfall. The Budget Stabilization Fund can be used instead of the City borrowing, increasing taxes, or significantly reducing expenditures. Since cities are constrained by the State law in their ability to borrow, it often leaves only the alternatives of increased taxes and/or significant decreases in spending. The General Fund and Budget Stabilization Fund are combined in the CAFR, but separated for budgetary purposes and when preparing the Five Year Fiscal Financial Action Plan.

Major Road Act 51 Fund - The Major Road Fund accounts for the repairs, maintenance, and construction of all the City’s major streets. The revenues consist of State-shared gasoline and weight tax collections under provisions of Act 51 of 1951 as amended and contributions from the Major Road Capital Program Fund and Local Road Capital Fund.

Local Road Act 51 Fund - The Local Road Fund accounts for the repairs, maintenance, and construction of all the City’s major streets. The revenues consist of State-shared gasoline and weight tax collections under provisions of Act 51 of 1951 as amended and contributions from the Local Road Capital Fund and the Safety Bike Path Fund.

Local Road Capital Fund - The Local Road Capital Fund accounts for the repairs, maintenance, and construction of the City’s local and major streets and assists in the funding of the Local Road Fund and Major Road Fund. The revenues consist of a special 15-year tax levy, federal, State and county grants, State-shared gasoline and weight tax collections, and investment earnings.

Capital Improvement Fund – The Capital Improvement Fund includes expenditures for building, land, major equipment, and other commodities which are of significant value and have a useful life of severa1 years. Capital improvement programming and budgeting involves the development of a long-term plan for capital expenditures of the City.

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The capital improvement program lists each proposed capital item to be undertaken, the year in which it will be started, the amount expected to be expended in each year and the proposed method of financing these expenditures. Based on these details, summaries of capita1 activity in each year can be prepared as well as summaries of financia1 requirements, such as amounts of general obligations bonds to be issued, amounts from general operating funds required, etc.

In FY2009-2010 the Capital Planning Fund and Capital Improvement Fund were combined in anticipation of GASB 54. The Capital Planning Fund was a mechanism to fund and support the Capital Improvement Fund’s 5 year capital plan. During the budget process each Department provided a five year projection of capital improvement expenditures. The Capital Planning Fund was used to even out the funding needs for these expenditures over a five year period as planned.

Major Road Debt Fund -This fund was established to account for the payment of annual principal and interest on two bond issues sold to improve major roads within the City. These annual requirements are met from a special ad valorem tax. A portion of this debt was refinanced at a lower interest rate by the 2004 Refunding Bond issue and September 2009.

Special Assessment Fund -This fund was established to account for the payment of annual principal and interest on $2,830,000 of bonds for the construction and improvements for the Tribute Drain which is part of the DDA/VCA Development Project Fund. The Village Center Area District is intended to allow for the development of a fully integrated, mixed use, pedestrian oriented Village Center Area (VCA). These annual requirements are met from annual special assessments to specific property owners.

The government reports the following major proprietary funds:

Water Fund - The Water Fund accounts for the operation and maintenance of the water supply system, capital additions, and retirement of revenue bonds. Financing is provided by user charges and contributions by other funds.

Sewer Fund - The Sewer Fund accounts for the operation and maintenance of the sewage disposal system, capital additions and improvements, and retirement of revenue bonds. Financing is provided by user charges and contributions by other funds and municipalities.

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Additionally, the government reports the following fund types:

Agency Fund - The Agency Fund, a fiduciary fund, accounts for the collection and payment to Oakland County, various school districts, and other taxing authorities of property taxes collected by the City on their behalf. This fund also accounts for assets held by the City as an agent for individuals, private organizations, or other governments. Fiduciary Funds are by nature custodial; therefore, operation results are not measured. Fiduciary funds are excluded from the government wide statements.

Retirees Trust Fund (Health Insurance) - The Retirees Trust Fund accounts for medical benefits provided to retirees. This is a medical trust that permits the City to invest assets to offset their future retiree health insurance liability. This fund was created in response to standards that were formulated by the Governmental Accounting Standards Board (GASB) for Post-Employment Benefits (also known as GASB 43 & 45 or GASB OPEB). Private-sector standards of accounting issued prior to December 1, 1989 are generally followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with the standards of the Governmental Accounting Standards Board. The government has elected not to follow private-sector standards issued after November 30, 1989 for its business-type activities.

These financial statements which compile the individual component units can be obtained from the City’s office at the following address: City of Wixom City Clerk 49045 Pontiac Trail Wixom, Michigan 48393

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenue include: (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenue rather than as program revenue. Likewise, general revenue includes all taxes.

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City of Wixom



Proprietary funds distinguish operating revenue and expenses from non-operating items. Operating revenue and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of our proprietary funds relate to charges to customers for sales and services. The Water and Sewer Fund also recognizes the portion of tap fees intended to recover current costs (e.g., labor and materials to hook up new customers) as operating revenue. The portion intended to recover the cost of the infrastructure is recognized as non-operating revenue. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as non-operating revenue and expenses.

When an expense is incurred for purposes for which both restricted and unrestricted net assets or fund balance are available, the City's policy is to first apply restricted resources. When an expense is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it is the City's policy to spend funds in this order: committed, assigned, and unassigned.

Assets, Liabilities, and Net Assets or Equity

Bank Deposits and Investments - Cash and cash equivalents include cash on hand, demand deposits, and short-term investments with a maturity of three months or less when acquired. Investments are stated at fair value. Pooled investment income from the Agency Fund is generally allocated to the General Fund.

Receivables and Payables - In general, outstanding balances between funds are reported as “due to/from other funds.” Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as “advances to/from other funds.” Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.”

All trade and property tax receivables are shown as net of allowance for uncollectible amounts. Property taxes are levied on each July 1 on the taxable valuation of property as of the preceding December 31. Taxes are considered delinquent on March 1 of the following year, at which time additional penalties and interest are assessed.

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Property Taxes – Property taxes are levied on each July 1 on the taxable valuation of property as of the preceding December 31. Taxes are due on August 31 for summer taxes and February 14 for winter taxes, with the final collection date of February 28 before they are added to the delinquent county tax rolls.

The 2010 taxable valuation of the City total $748,760,880 Ad Valorem and $14,123,000 Industrial Facilities Tax. The table below shows the breakdown of millage and taxes collected for the different funds.

Description Type Mills Taxes CollectedGeneral Fund Operating 7.5429 $5,792,459Local Road Program Operating 1.1314 808,223 Safety Bike Path Operating 0.3000 216,618 Major Road Program Debt Service 1.0870 803,116 Water Debt Debt Service 1.2310 899,570 DPW & Fire Capital Fund Debt Service 0.3700 273,378 Total 11.6623 $8,793,364

Taxes collected in this schedule do include estimated property tax refunds due to outstanding Tax Tribunal Appeals. These amounts in the schedule are recognized in the respective General Fund, Special Revenue Fund, and Debt Service Fund financial statements as taxes receivable or as tax revenue.

Inventories and Prepaid Items - Inventories are valued at cost, on a first-in, first-out basis. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased for DPW gas & oil, salt, sand and sign inventories. Other inventories of the governmental funds are immaterial amounts. Inventories of proprietary funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets - Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. In general, capital assets are defined by the government as assets with an initial individual cost of more than $500 and an estimated useful life in excess of one year. Exceptions due to the nature of the capital asset may require that the capital asset be recorded for City purposes. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. In the case of infrastructure and assets purchased or constructed prior to June 30, 2003,

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estimated historical cost was used where actual cost information was not available. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially affect the asset life are not capitalized. Major outlays for capital assets are capitalized as projects are constructed. Interest incurred during the construction of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. During the current year, no such interest expense was capitalized as part of the cost of assets under construction. Depreciation of capital assets used by the City is charged as an expense against its various functions. Depreciation is computed using the straight-line method over the following useful lives: Roads, sidewalks, and bike paths 20 to 30 yearsWater and sewer distribution systems 50 to 75 yearsDrain Improvements 50 yearsWater and sewer treatment facilities 40 to 50 yearsBuildings and building improvements 40 to 50 yearsVehicles 3 to 5 yearsOffice furnishings 5 to 7 yearsOther tools and equipment 3 to 7 yearsBooks and Periodicals 10 yearsStormwater Improvements 30 years Compensated Absences (Vacation, Compensatory Time Off, and Sick Leave) - It is the government’s policy to permit employees to accumulate earned but unused sick, vacation pay benefits, and compensatory time. Vacation pay is fully vested when earned, and sick pay is conditionally vested upon completion of a certain number of years of service. Upon retirement, employees are paid accumulated vacation and 35% of unused sick days at their hourly rate as of their retirement date. A liability for the entire amount, current and long-term, is accrued in the government-wide and proprietary financial statements. A liability for these amounts is reported in governmental funds only for employee terminations as of year end.

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Fund Equity - In March 2009, the GASB issued Statement No. 54, Fund BalanceReporting and Governmental Fund-type Definitions. The objective of this statementis to enhance the usefulness of fund balance information by providing clearer fundbalance classifications that can be more consistently applied and by clarifying theexisting governmental fund-type definitions. This statement establishes fund balanceclassifications that comprise a hierarchy based primarily on the extent to which agovernment is bound to observe constraints imposed on the use of the resourcesreported in governmental funds. Under this standard, the fund balance classificationsof reserved, designated, and unreserved/undesignated were replaced with five newclassifications - nonspendable, restricted, committed, assigned, and unassigned. TheCity implemented Statement No. 54 during the year.

In the fund financial statements, governmental funds report the followingcomponents of fund balance:

Nonspendable: Amounts that are not in spendable form or are legally orcontractually required to be maintained intact

Restricted: Amounts that are legally restricted by outside parties, constitutionalprovisions or enabling legislation for use for a specific purpose

Committed: Amounts that have been formally set aside by the City Council foruse for specific purposes. Commitments are made and can be rescinded only viaresolution of the City Council

Assigned: Intent to spend resources on specific purposes expressed by thegoverning body, or those who are authorized by resolution or policy approved bythe governing body to make assignments.

Unassigned: Amounts remaining after all funds have been allocated to theappropriate fund balance components noted above. In the fund financialstatements, governmental funds report reservations of fund balance for amountsthat are not available for appropriation or are legally restricted by outside partiesfor use for a specific purpose.

During the year, the City adopted GASB Statement No. 54. In FY2010-2011 theBudget Stabilization Fund was combined with the General Fund in accordance withGASB 54.

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Long-term Obligations - In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund-type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issuance costs are reported as debt service expenditures.

Pension and other postemployment benefit costs - The City offers both pension and retiree health care benefits to retired employees. The City receives an actuarial valuation, or completes one itself, to compute the annual required contribution (ARC) necessary to fund the obligation over the remaining amortization period. In the governmental funds, pension and OPEB costs are recognized as contributions are made. For the government wide statements and proprietary funds, the City reports the full accrual cost equal to the current year required contribution, adjusted for interest and "adjustment to the ARC" on the beginning of year underpaid amount, if any.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

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City of Wixom


Note 2 - Stewardship, Compliance, and Accountability

The City is legally subject to the budgetary control requirements of State of Michigan P.A. 621 of 1978 (the Uniform Budgeting Act). The following statements represent a brief synopsis of the major provisions of this Act:

1. Budgets must be adopted for the General Fund and Special Revenue Funds.

2. The budgets must be balanced. The balanced budget may include a contribution to or appropriation from fund balance.

3. The budgets must be amended when necessary.

4. Debt cannot be entered into unless permitted by law.

5. Expenditures cannot exceed budget appropriations.

6. Expenditures cannot be made unless authorized in the budget.

7. Public hearings must be held before budget adoptions. Excess of Expenditures Over Appropriations in Budgeted Funds - During the year, the City incurred expenditures that were in excess of the amounts budgeted, as follows:

Budget Item Budget ActualGovernmental Funds

Local Road Act 51 Fund Traffic Service 47,000$ 51,287$

Special Agency FundSpecial Agency Fund Expenditures 308,512 309,423

Special Assessment FundDebt Service/Defeasance Costs 218,003 592,998

Fund Deficits - At June 30, 2011, the City has a deficit in the Safety Bike Path Fund. The early engineering work done to prepare for the FY2011-2012 summer bike path construction resulted in a deficit of $7,565. The Safety Path Fund deficit will be eliminated in FY2011-2012 through continuing collection of property taxes and reduction in future expenditures.

Compliance with the Single Audit Act Amendments of 1996 - After examination by the City's independent auditors, a compliance audit in accordance with the Single Audit Act was not necessary since the City did not meet the threshold requirement.

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Note 2 - Stewardship, Compliance, and Accountability (Continued)

Construction Code Fees - The City oversees building construction in accordance with the State’s Construction Code Act, including inspection of building construction and renovation to ensure compliance with the building codes. The City charges fees for these services. The law requires that collection of these fees be used only for construction code costs, including an allocation of estimated overhead costs. Since direct costs exceed building permit revenue, it was not necessary to calculate and allocate indirect costs. A summary of the current year and the cumulative shortfall generated since January 1, 2000 is as follows:

Shortfall at July 1, 2010 (1,786,087)$

Building permit revenue 240,357 Related expenses:

Direct costs 430,262$ Estimated indirect costs -

Total construction code expenses 430,262

Cumulative shortfall at June 30, 2011 (1,975,992)$ Note 3 - Deposits and Investments

Michigan Compiled Laws Section 129.91 (Public Act 20 of 1943, as amended) authorizes local governmental units to make deposits and invest in the accounts of federally insured banks, credit unions, and savings and loan associations that have offices in Michigan. The local unit is allowed to invest in bonds, securities, and other direct obligations of the United States or any agency or instrumentality of the United States; repurchase agreements; bankers’ acceptances of United States banks; commercial paper rated within the two highest classifications, which matures not more than 270 days after the date of purchase; obligations of the State of Michigan or its political subdivisions, which are rated as investment grade; and mutual funds composed of investment vehicles that are legal for direct investment by local units of government in Michigan.

The City has designated four banks for the deposit of its funds. The investment policy adopted by the Board in accordance with Public Act 196 of 1997 has authorized investment in all of the items described above. The City of Wixom’s deposits and investment policies are in accordance with statutory authority.

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Note 3 - Deposits and Investments (Continued) The Retiree Health Care Benefits Fund is also authorized by Michigan Public Act 149 of 1999, as amended, to invest in certain reverse repurchase agreements, stocks, diversified investment companies, annuity investment contracts, real estate leased to public entities, mortgages, real estate (if the trust fund’s assets exceed $250 million), debt or equity of certain small businesses, certain state and local government obligations, and certain other specified investment vehicles.

The City’s cash and investments are subject to several types of risk, which are examined in more detail below:

Custodial Credit Risk of Bank Deposits - Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk. At year end, the City had no bank deposits (certificates of deposit, checking and savings accounts) that were uninsured and uncollateralized. The City believes that due to the dollar amounts of cash deposits and the limits of FDIC insurance and FDIC’s Transaction Account Guarantee Program, it is impractical to insure all deposits. As a result, the City evaluates each financial institution with which it deposits funds and assesses the level of risk of each institution; only those institutions with an acceptable estimated risk level are used as depositories. The component units do not have bank deposits. Interest Rate Risk - Interest rate risk is the risk that the value of investments will decrease as a result of a rise in interest rates. The City's investment policy does not restrict investment maturities, other than commercial paper which can be purchased with a 270 day maturity. Unless matched to a specific cash flow the City will not directly invest in securities maturing more than five (5) years from the date of purchase or in accordance with state and local statues and ordinances. Reserve funds and other funds with longer-term investment horizons may be invested in securities exceeding five (5) years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of funds. At year end, the average maturities of investments are as follows:

Investments Fair Value

Weighted Average Maturity

Government-Wide:Certificates of Deposit 1,089,837 107 daysU.S. Agency securities 270,728 522 daysMunicipal bonds 2,753,410 329 days

Component UnitsCertificates of Deposit 478,911 107 daysU.S. Agency securities 118,967 522 daysMunicipal bonds 1,209,941 329 days

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City of Wixom


Note 3 - Deposits and Investments (Continued)

Custodial Credit Risk of Investments - Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have a policy for custodial credit risk. At year end, the City had no investment securities which were uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City’s name.

Credit Risk - State law limits investments in commercial paper to the top two ratings issued by nationally recognized statistical rating organizations. The City’s investment policy states that the City will minimize credit risk by limiting investments to the safest types of securities, pre-qualifying the financial institutions, brokers, intermediaries and advisers with which the City will do business, and diversifying the investment portfolio so that potential losses on individual securities will be minimized. As of year end, the credit quality ratings of debt securities (other than the Treasury Direct - U.S. government) are as follows:

Investment Fair Value Rating Rating OrganizationTreasury Direct (US Government) 5,005,073 Gov Securities US GovernmentComerica–Governmental Pooled InvestmentFund, (Pool is not rated separately, individualinvestment ratings)

7,786,498 Gov SecuritiesAAA, Aaa

CommercialPaper P1, A1 or

higher

S&P, Moody’s

Ambassador Capital (Certificates of Deposit, Federal Farm Credit Bank, Municipal Bond)

5,619,456 Gov Securities SP-1, AAA, AA-, AA+, A+, MIG1;

Certificates of Deposits; Fed. Farm Credit Bank AAA

S&P, Moody’s

Chase Governmental Fund 1,079,762 Aaa Moody’s

Municipal Employees Retirement System (MERS) 3,474,257 See Below See BelowInvestment (Component Units) Fair Value Rating Rating Organization

Treasury Direct (US Government) - Gov Securities US GovernmentComerica–Governmental Pooled InvestmentFund, (Pool is not rated separately, individualinvestment ratings)

1,430,885 Gov SecuritiesAAA, Aaa

CommercialPaper P1, A1 or

higher

S&P, Moody’s

Ambassador Capital (Certificates of Deposit, Federal Farm Credit Bank, Municipal Bond)

1,812,337 Gov Securities SP-1, AAA, AA-, AA+, A+, MIG1;

Certificates of Deposits; Fed. Farm Credit Bank AAA

S&P, Moody’s

49

City of Wixom


Note 3 - Deposits and Investments (Continued)

The City has invested their Retiree Health Insurance funds in the MERS Health Investment Funding Vehicle account. This investment is held in a medical trust that permits the City to save and grow assets within the MERS Total Market Fund. This investment choice was utilized to help offset the rising cost of retiree health care.

The MERS Total Market Fund Portfolio attempts to limit market volatility while achieving a reasonable growth and rate of return. The City is attempting over the long term to obtain an annual rate of return to equal or exceed the actuarial assumption rate of 8%. The portfolio has returned 5.62% over the trailing 10-year period as of June 30, 2011. Type of Investment Portfolio – 34.6% Domestic Equity, 7.5% International Equity, 19.8% US Bond, 2.2% Emerging Market Stock, 14% Global Bond, 5.7% Global Real Estate, 10% Private Equity, 4.9% Commodities, and 1.3% Cash. MERS Total Market Fund Portfolio is managed and monitored by professional investment personnel under the authority of the MERS Retirement Board. Prospective portfolio managers must successfully complete MERS manager screening process prior to final Board selection. The portfolio offers diversified exposure to all major investment asset classes within established and prudent risk parameters. The primary investment objective is to maximize the long-term total rate of return on investments with a high degree of prudence and sufficient diversification to eliminate inordinate risk. The portfolio is managed in conformance with the Michigan Public Employee Retirement Systems Investment Act, 1965 PA 314, as amended. In addition, the Retirement Board has established Investment Guidelines that are updated annually.

These guidelines communicate the long-term objectives, goals and performance expectations to the staff, investment managers, consultants and other interested parties. Every effort is made to minimize the costs to the portfolio with the use of skilled internal and external resources without adversely impacting the performance. Concentration of Credit Risk - The City places no limit on the amount they may invest in any one issuer. More than 5 percent of the City’s investments are in Treasury Direct (US Government), Comerica, and Ambassador Capital Management. These investments are 82 percent of the City’s total investments.

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City of Wixom


Note 4 - Receivables Receivables as of year end for the City’s individual major funds and the non-major, Debt Service, and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

GeneralFund Major Road Fund

Local Road Fund

Special Assessment

Nonmajor and Other Funds Total


Receivables:Taxes - $ - $ - $ - $ - $ - $ 146,340$ Accounts 287,427 - - - 6,164 293,591 - Intergovernmental 24,268 76,383 32,898 - - 133,549 - Grants and other - - 73,293 - 1,378 74,671 - Special Assessment - - - 2,321,250 - 2,321,250 (329,160) Less allowance for uncollectibles - - - - - - (29,268)

Net receivables 311,695$ 76,383$ 106,191$ 2,321,250$ 7,542$ 2,823,061$ (212,088)$

Governmental funds report deferred revenue in connection with receivables for revenue that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received but not yet earned. At the end of the current fiscal year, the various components of deferred revenue are as follows:

Unavailable Unearned

Special Assessment - Deferred 2,172,250$ 149,000$

Total 2,172,250$ 149,000$

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City of Wixom


Note 5 - Capital Assets

Capital asset activity of the primary government’s governmental and business-type activities was as follows:

Balance

July 1, 2010 Additions Disposals

Balance

June 30, 2011


Capital assets not being depreciated:

Land 5,076,279$ - $ -$ 5,076,279$

Subtotal 5,076,279 - - 5,076,279

Capital assets being depreciated:

Roads and sidewalks 56,822,571 2,482,300 - 59,304,871

Buildings and improvements 12,174,377 1,385 - 12,175,762

Buildings and impr. - DDA/VCA 5,085,103 - - 5,085,103

Vehicles 4,488,978 122,863 106,292 4,505,549

Office furnishings 693,616 3,669 474 696,811

Stormwater 500,433 2,240 - 502,673

Drain Improvements 2,119,136 - - 2,119,136

Other tools and equipment 3,734,226 131,065 15,355 3,849,936

Subtotal 85,618,440 2,743,522 122,121 88,239,841

Accumulated depreciation:

Roads, sidewalks, and bike paths 36,322,887 1,918,563 - 38,241,450

Buildings and improvements 4,996,826 334,698 - 5,331,524

Buildings and impr. - DDA/VCA 475,100 101,858 - 576,958

Vehicles 2,482,803 342,513 (97,222) 2,728,094

Office furnishings 636,089 15,713 (474) 651,328

Stormwater 48,127 8,800 - 56,927

Drain Improvements 174,271 42,383 - 216,654

Other tools and equipment 2,483,857 247,136 (14,691) 2,716,302

Subtotal 47,619,960 3,011,664 (112,387) 50,519,237

Net capital assets being depreciated 37,998,480 (268,142) 9,734 37,720,604

Net capital assets 43,074,759$ (268,142)$ 9,734$ 42,796,883$

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City of Wixom


Note 5 - Capital Assets (Continued)

Balance

July 1, 2010 Additions

Balance

June 30, 2011

Component Units


Land - DDA 154,296$ -$ 154,296$

Subtotal 154,296 - 154,296

Capital assets being depreciated:Buildings and improvements - DDA 499,892 - 499,892 Other tools and equipment - DDA 60,913 - 60,913

Subtotal 560,805 - 560,805

Accumulated depreciation:Buildings and improvements - DDA 254,389 22,747 277,136 Other tools and equipment - DDA 60,913 - 60,913

Subtotal 315,302 22,747 338,049

Net capital assets being depreciated 245,503 (22,747) 222,756

Net capital assets 399,799$ (22,747)$ 377,052$

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City of Wixom



Facilities and buildings for Wastewater and Water Enterprise Funds are located on City owned land.

Balance

July 1, 2010 Additions

Balance

June 30, 2011



Construction in progress -$ 477,535$ 477,535$

Subtotal - 477,535 477,535

Capital assets being depreciated:Water and sewer distribution systems 51,199,624$ 151,912$ 51,351,536$ Buildings and building improvements 20,497,491 975,073 21,472,564 Office furnishings 67,444 - 67,444 Other tools and equipment 1,731,724 - 1,731,724

Subtotal 73,496,283 1,126,985 74,623,268

Accumulated depreciation:Water and sewer distribution systems 10,450,094 828,621 11,278,715 Buildings and building improvements 7,458,374 454,856 7,913,230 Office furnishings 67,444 - 67,444 Other tools and equipment 1,477,862 48,885 1,526,747

Subtotal 19,453,774 1,332,362 20,786,136

Net capital assets being depreciated 54,042,509 (205,377) 53,837,132

Net capital assets 54,042,509$ 272,158$ 54,314,667$

54

City of Wixom



Depreciation expense was charged to programs as follows:

Governmental activities:

General government 235,026$ Community Development 101,858 Public safety 388,080 Public works 286,144 Public works (Roads, sidewalks, and bike paths) 1,865,681 Drain Improvements 42,383 Recreation, culture, and educational 92,492

Total governmental activities 3,011,664$

Business-type activities:Water 628,829$ Sewer 703,533

Total business-type activities 1,332,362$

Component units activities:DDA 22,747$

Total component units activities 22,747$

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City of Wixom



Construction Commitments - The City has active construction projects at year end. The projects include the improvements to the Indian Wells and Indian Springs subdivisions, West Maple Road, and Potter Road Safety Bike Path. The City also had an active project for the installation of an influent pump & variable frequency drive and an Ultraviolet Disinfection System for the Wastewater system. At year end, the City of Wixom’s commitments with contractors are as follows:

Spent to

Date Remaining

Commitment

Street Projects 103,971$ 885,763$ Sewer Projects 1,303,812 620,688

Total 1,407,783$ 1,506,451$

Note 6 - Interfund Receivables, Payables, and Transfers

The composition of interfund balances is as follows: Receivable Fund Payable Fund Amount

Due to/from other funds:General Fund Sewer Fund 534,902$

CDBG Fund 1,378 Major Act 51 Fund 76,383 Local Act 51 Fund 32,898 Local Road Capital Program 7,261

Debt - DPW/Fire Building Debt Fund 2,125 Debt - Major Road Fund 6,387

Special Agency General Fund 1,155,927 Capital Improvement Fund General Fund 594,261 Major Road Capital Program General Fund 14,590

Forfeiture Fund General Fund 1,311 Safety Bike Path Program General Fund 16 Cemetery General Fund 1,224 Other funds General Fund 38

Total governmental activities 2,428,701

Water Fund General Fund 284,901

Total 2,713,602$

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City of Wixom


Note 6 - Interfund Receivables, Payables, and Transfers (Continued)

These balances result from the time lag between the dates that goods and services are provided or reimbursable expenditures occur, transactions are recorded in the accounting system, and payments between funds are made. A cash clearing account is utilized to process biweekly check cutting, and expenditures are charged to the appropriate accounts, which also records and balances automatically the Due To/Due From transactions. In addition to the above interfund balances, the Sewer Fund advanced $885,325 in FY2008-2009 to the Capital Planning Fund for the purchase of a fire truck. This advance is to be repaid over 10 years. The outstanding balance as of June 30, 2011 is $619,727.

Interfund Transfers:

Fund Transferred From Fund Transferred To Amount

General Fund Capital Improvement Fund 351,880$ Major Road Act 51 Fund 14,016 Local Road Act 51 Fund 209,390

Special Agency Fund General Fund 11,884 Cemetery Fund Capital Improvement Fund 776 Forfeiture Fund Capital Improvement Fund 8,751 DPW & Fire Capital Project Fund Capital Improvement Fund 14,692

Total 611,389$

Transfers between the various funds represent payment from one fund to another without an equivalent return of goods or services to fund operations and projects accounted for in the respective funds. Certain transfers, such as the transfers related to Major Road Act 51 and Local Road Act 51, are transfers stipulated by State of Michigan law. Transfers from the Cemetery Fund, Forfeiture Fund, and DPW & Fire Debt Fund to the Capital Improvement Fund provide for capital improvements in various areas as stipulated in the City’s five-year capital improvement plan.

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City of Wixom


Note 7 - Long-term Debt

The government issues bonds to provide for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. Revenue bonds involve a pledge of specific income derived from the acquired or constructed assets to pay debt service. The Special Assessment Tribute Drain Bonds are issued by Oakland County.

Long-term obligation activity can be summarized as follows:

Beginning

Balance Reductions Ending Balance

Due Within One

Year

Governmental activities - General obligation bonds:

Major Road Refunding 2004 bonds 565,000 565,000 - - Refunding Bonds 2009 3,220,000 500,000 2,720,000 830,000 DDA/VCA Development bonds 5,560,000 160,000 5,400,000 185,000

Total governmental activities 9,345,000 1,225,000 8,120,000 1,015,000

Contractual Obligation with Oakland CountySpecial Assessment-Tribute Drain 2,330,000 400,000 1,930,000 125,000

Total governmental activities 11,675,000$ 1,625,000$ 10,050,000$ 1,140,000$

Business-type activities:General obligation bonds:

Water SRF Series 1 bonds 2,037,347$ 187,953$ 1,849,394$ 192,772$ Water SRF Series 2 bonds 3,480,000 310,000 3,170,000 320,000 Water SRF Series 3 bonds 4,073,331 360,000 3,713,331 370,000 Water Series 4 bonds 840,000 80,000 760,000 80,000

Total business-type activities 10,430,678$ 937,953$ 9,492,725$ 962,772$

Component unit activities - DDA obligation 44,000 - 44,000 -

Total component unit activities 44,000$ - $ 44,000$ - $

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City of Wixom


Note 7 - Long-term Debt (Continued)

Total compensated absence balances increased from $629,638 to $707,788 with a net change of $78,150 for the fiscal year. Typically, the General Fund's resources are used to liquidate the liability for compensated absences. It is estimated that approximately the same compensated absences will be used in Fiscal Year 2011-2012 as shown below in the taken row.

Governmental Vacation Sick Time Comp Time TotalBeginning Bal 457,192 110,615 61,831 629,638 Earned 256,164 195,979 45,555 497,698 Taken (263,663) (114,097) (36,743) (414,503) Adjustment 37,160 (33,948) (8,257) (5,045) Ending Balance 486,853 158,549 62,386 707,788

Compensated absences due within one year 371,290 - 62,386 433,676

Compensated absences due after one year 115,563 158,549 - 274,112 Total 486,853 158,549 62,386 707,788

General obligation bonds - The government issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. Revenue bonds - The City and its discretely presented component units also issue bonds where the income derived from the acquired or constructed assets is pledged to pay debt service. Some additional detail for each issue such as original amount of the debt issue, ranges of interest rates, ranges of principal maturities and other information are shown below.

Original

Amount of Maturing Interest Rate Principal Maturity Refinanced

Debt Issue Year Issue Through Date Range Ranges Range of Installments Bonds Y/N

Governmental activities - General obligation

bonds:

DDA/VCA Development Bonds (Limited) 5,750,000 March-05 May-27 4.00% to 4.15% $90,000 to $450,000 $402,910 to $518,710 N

Refunding Bonds 2009 3,220,000 September-09 May-15 2.25% to 3.00% $250,000 to $830,000 $257,500 to $899,213 N

Contractual Obligation with Oakland County

Special Assessment-Tribute Drain 2,830,000 September-05 April-25 3.50% to 4.40% $75,000 to $200,000 $200,040 to $221,853 Y

Business-type activities:

General obligation bonds:

Water SRF Series 1 bonds 3,895,000 September-98 October-19 2.50% $150,000 to $245,000 $164,670 to $239,188 N

Water SRF Series 2 bonds 6,180,000 April-99 October-19 2.50% $240,000 to $390,000 $392,188 to $395,250 N

Water SRF Series 3 bonds 7,290,000 March-00 October-19 2.50% $305,000 to $475,000 $458,208 to $468,083 N

Water Series 4 bonds 1,335,000 December-01 April-20 4.90% to 5.15% $20,000 to $85,000 $89,378 to $119,128 N

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Annual debt service requirements to maturity for the above governmental bond andnote obligations are as follows:

Governmental Activities Business-type ActivitiesYears Ending

June 30 Principal Interest Total Principal Interest Total

2012 1,015,000 375,289 1,390,289 962,772 245,331 1,208,1032013 1,035,000 344,838 1,379,838 987,592 219,094 1,206,6862014 1,145,000 311,439 1,456,439 1,012,411 192,054 1,204,4652015 625,000 275,450 900,450 1,032,230 164,456 1,196,6862016 420,000 253,388 673,388 1,057,049 136,300 1,193,3492017-2021 2,440,000 1,001,527 3,441,527 4,440,671 249,206 4,689,8772022-2026 2,920,000 447,786 3,367,786 - - -2027 450,000 18,675 468,675 - - -

Total 10,050,000$ 3,028,392$ 13,078,392$ 9,492,725$ 1,206,441$ 10,699,166$

No Commitment Debt - Excluded from the General Long-term Debt are bondsissued under the Industrial Development Revenue Bond Act of 1963, as amended,which authorizes municipalities to acquire and lease industrial sites, buildings, andequipment. Also excluded are revenue bonds issued by the Economic DevelopmentCorporation to acquire and lease property to third parties. The revenue bonds issuedare payable solely from the net revenue derived from the respective leases and arenot a general obligation of the City. After these bonds are issued, all financialactivity is taken over by the paying agent. The bonds and related lease contracts arenot reflected in the City’s financial statements.

Advance and Current Refundings - On November 26, 2010, the City Councilpassed a resolution to authorize the defeasance of the October 2005 Limited TaxGeneral Obligation Special Assessment Bonds for Drain improvements whichamounted to $2,830,000. The bonds were issued for the purpose of constructingdrainage improvements for the Village Center Area. The payments began on October1, 2005 and would mature on April 1, 2025, with interest ranging from 3.00 percentto 4.40 percent.

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City of Wixom



Upon close of this project, it was determined that surplus proceeds and interest earnings exist in the amount of $546,697. It was determined that the surplus proceeds from the bond monies, along with investment earnings, should be used to reduce the bond principal. This defeasance is estimated to result in no actual cumulative savings. The payments covered by escrow funds begin in April 2011 and end in April 2012, with interest ranging from 3.25 percent to 3.50 percent. The advance refunding reduced total debt service payments over the next two years by $534,279 (principal $400,000 and interest $134,279).

Note 8 - Restricted Assets

The balances of the restricted asset accounts are as follows:


Customer and other deposits 402,962$

Total restricted assets 402,962$ Note 9 - Risk Management

The City is exposed to various risks of loss related to property loss, torts, errors and omissions, and employee injuries (workers’ compensation), as well as medical benefits provided to employees. The City has purchased commercial insurance for employee health benefits claims, participates in the Michigan Municipal Risk Management Authority risk pool for claims relating to property loss, torts, and errors and omissions, and participates in the Michigan Municipal League (risk pool) for claims relating to workers’ compensation. Settled claims relating to the commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years. The Michigan Municipal League risk pool program operates as a common risk-sharing management program for local units of government in Michigan; member premiums are used to purchase commercial excess insurance coverage and to pay member claims in excess of deductible amounts.

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City of Wixom


Note 10 - Defined Benefit Pension Plan

Plan Description - The City participates in the Municipal Employees’ Retirement System of Michigan (MERS), an agent multiple-employer defined benefit pension plan that covers substantially all full-time employees of the City. The MERS provides retirement, disability, and death benefits to plan members and their beneficiaries. The MERS issues a publicly available financial report that includes financial statements and required supplementary information for the MERS. The report may be obtained by writing to the MERS at 1134 Municipal Way, Lansing, MI 48917.

Funding Policy - The obligation to contribute to and maintain the MERS for these employees was established by negotiation with the City’s collective bargaining units and requires a contribution from the employees ranging from 0 percent to 6.26 percent.

Annual Pension Costs - For the year ended June 30, 2011, the City’s annual pension cost of $895,324 for the plan was equal to the required and actual contribution. The annual required contribution was determined as part of an actuarial valuation at December 31, 2008, using the entry actual age cost method. Significant actuarial assumptions used include: (i) an 8 percent investment rate of return; (ii) projected salary increases of 4.50 percent per year; and (iii) 2.50 percent per year cost of living adjustments. Both (i) and (ii) are determined using techniques that smooth the effects of short-term volatility over a four-year period. The unfunded actuarial liability is being amortized as a level percent of payroll on a closed basis. The remaining amortization period is 28 years.

62


Note 10 - Defined Benefit Pension Plan (Continued)

Three-year trend information is as follows:

2009 2010 2011General Employees' Retirement System:

Annual pension costs (APC) 736,460$ 757,748$ 895,324$Percentage of APC contributed 100% 100% 100%Net pension obligation -$ -$ -$

ActuarialValuation as ofDecember 31

2008 2009 2010

Actuarial value of assets 13,710,321$ 14,573,902$ 15,626,617$Actuarial accrued liability (AAL) (entry

actual age) 21,239,805$ 21,648,972$ 22,994,104$Unfunded AAL (UAAL) 7,529,484$ 7,075,070$ 7,367,487$Funded ratio 65% 67% 68%Covered payroll 3,536,258$ 3,561,123$ 3,509,348$UAAL as a percentage of covered payroll 213% 199% 210%

Deferred Compensation Plan

The City offers an employee-only contributing deferred compensation plan createdin accordance with Internal Revenue Code Section 457. The plan, available to allpermanent City employees, permits each employee to defer a portion of their salaryuntil future years. The deferred compensation is not available for distribution toemployees until termination, retirement, death, or unforeseeable emergency.

All amounts of compensation deferred under the plan with VALIC or MERS, allproperty and rights purchased with those amounts, and all income attributable tothose amounts, property, or rights, are held in trust, for the exclusive benefit of theplan participants and their beneficiaries. The assets shall not be diverted for anyother purpose. All provisions of the plan and trust are in conformance with InternalRevenue Code Section 457. Effective January 2011, MERS began to administerthe MERS Defined Contribution, rather than using their past third-partyadministrator, ICMA-RC. The MERS Retirement Board approved the transition attheir September 17, 2010 Board Meeting. It is hoped that this will help cut costs forparticipants and coordinate services across the MERS programs.

The plan’s funds are excluded from the financial statements in conformance withthe reporting and disclosure requirements in GASB Statement Number 32,Accounting and Financial Reporting for Internal Revenue Code Section 457Deferred Compensation Plans.

63


Note 11 - Other Postemployment Benefits

Plan description: The City provides retiree health care benefits to eligibleemployees and their spouses. Currently, the plan has 59 members (includingemployees in active service, terminated employees not yet receiving benefits, andretired employees and beneficiaries currently receiving benefits). The Library, aseparate governmental entity, also participates in this plan. This combined entitypan is a cost-sharing, multiple-employer, defined benefit plan administered by theCity of Wixom. The benefits are provided under collective bargaining agreementsand Library policy.

This is a single employer defined benefit plan administered by the MunicipalEmployees Retirement System (MERS). The benefits are provided under collectivebargaining agreements or Executive Directives approved by City Council. The plandoes not issue a separate stand-alone financial statement. Administrative costs arepaid by the Plan through employer contributions. An Audited GAAP basisPostemployment Benefit Plan report is not available for the Other PostemploymentBenefit plan.

Funding policy: The collective bargaining agreements require a contribution of 1%of payroll from employees. Retiree health care costs are recognized when paid bythe City on a “pay-as-you-go” basis. The City has no obligation to makecontributions in advance of when the insurance premiums are due for payment.However, as shown below, the City has made contributions to advance-fund thesebenefits, as determined by the City Council through annual budget resolutions. Inthe current year, the City paid post-employment health care premiums of $63,878(includes Governmental and Library). The City’s annual contribution amounting to$256,580 (Governmental $221,620 and Library $34,960) distributed to the HealthInsurance – MERS Fund an irrevocable trust.

Funding progress: For the year ended June 30, 2011, the City has estimated thecost of providing retiree health care benefits through use of a spreadsheet thatcomplies with the requirements of GASB 45. The spreadsheet computes an annualrequired contribution that, if paid on an ongoing basis, is projected to cover normalcost each year and amortize any unfunded actuarial liabilities over a period not toexceed 30 years. The spreadsheet uses actuarial techniques, although it was notperformed by an actuary. The June 30, 2011 valuation’s computed contribution andactual funding are summarized as follows:

64


Note 11 - Other Postemployment Benefits (Continued)Annual required contribution (recommended) (625,283)

Interest on prior year's net OPEB obligation 11,821

Less Adjustment to the annual required contribution (10,161)

Annual OPEB cost (623,623)

Amounts contributed -

Payments of current premiums 63,878

Contribution to MERS 256,580

Inc/Decrease in net OPEB obligation (303,165)

OPEB asset - beginning of year 147,767

OPEB obligation - end of year (155,398)

Net OPEB obligation - Governmental (170,005)

Net OPEB asset - Library 14,606

OPEB obligation - end of year (155,399)

The allocation of increase in net OPEB obligation between the City and the Libraryare $317,772 (City) and ($14,607) (Library). The annual OPEB costs, thepercentage contributed to the plan, and the net OPEB obligation for the current andtwo preceding years were as follows:

Fiscal Year Ended June 302009 2010 2011

Annual OPEB Costs 460,606$ 486,684$ 625,283$Percentage contributed 0% 207.9% 54.6%Net OPEB obligation 460,606$ (147,767)$ 155,398$

The funding progress of the plan as of the most recent valuation date is as follows:Valuation a of: June 30, 2009 June 30, 2010 June 30, 2011Actuarial value of assets 1,460,134$ 2,613,715$ 3,419,519Actuarial accrued liability 4,359,315$ 5,669,404 7,495,267Unfunded AAL 2,899,181$ 3,055,689$ 4,075,748Funded ratio 33.5% 46.1% 45.6%Annual covered payroll 3,471,152$ 3,614,823 3,620,780Ratio of UAAL to covered payroll 84% 85% 113%

Actuarial methods and assumptions - Actuarial valuations of an ongoing planinvolve estimates of the value of reported amounts and assumptions about theprobability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality, and the healthcare cost trend.Amounts determined regarding the funded status of the plan and the annual requiredcontributions of the employer are subject to continual revision as actual results arecompared with past expectations and new estimates are made about the future. Theschedule of funding progress, presented above, presents multiyear trend informationabout whether the actuarial value of plan assets is increasing or decreasing overtime relative to the actuarial accrued liabilities for benefits.

65


Note 11 - Other Postemployment Benefits (Continued)

Projections of benefits for financial reporting purposes are based on the substantiveplan (the plan as understood by the employer and the plan members) and includethe types of benefits provided at the time of each valuation and the historical patternof sharing of benefit costs between the employer and plan members to that point.The actuarial methods and assumptions used include techniques that are designed toreduce the effects of short-term volatility in actuarial accrued liabilities and theactuarial value of assets, consistent with the long-term perspective of thecalculations.

The following simplifying assumptions were made:

Retirement age for active employees - Based on the historical average retirementage for the covered group, active plan members were assumed to retire at age 62, orat the first subsequent year in which the member would qualify for benefits.

Marital status - Marital status of members at the calculation date was assumed tocontinue throughout retirement.

Mortality - Life expectancies were based on mortality tables from the NationalCenter for Health Statistics. The 19W9 United States Life Tables for Males and forFemales were used.

Turnover - Non-group-specific age-based turnover data from GASB Statement 45were used as the basis for assigning active members a probability of remainingemployed until the assumed retirement age and for developing an expected futureworking lifetime assumption for purposes of allocating to periods the present valueof total benefits to be paid.

Healthcare cost trend rate - The expected rate of increase in healthcare insurancepremiums was based on projections of actual premium increases in FY2010-2011and the Office of the Actuary at the Centers for Medicare & Medicaid Services. Acomposite rate of 7.0 percent initially, reduced to an ultimate rate of 5.6 percentafter six years, was used.

Health insurance premiums - FY2010-2011 health insurance premiums for retireeswere used as the basis for calculation of the present value of total benefits to bepaid.

Inflation rate - The expected long-term inflation assumption of 2.8 percent wasbased on projected changes in the Consumer Price Index for Urban Wage Earnersand Clerical Workers (CPI-W) in the 2010 Annual Report of the Board of Trusteesof the Federal Old-Age and Survivors Insurance and Disability Insurance TrustFunds for an intermediate growth scenario.

66


Note 12 – Restricted Net Assets

Net assets have been restricted for the following purposes:

Restricted for

Total Governmental

Activities

Total Business-

Type Activities

Maintenance/improvements for local roads 1,769,340$ -$Public improvements for major roads 774,310 -Public improvements for Bike Paths (7,565) -Restricted for Special Agency Funds 1,203,755 -Restricted for Debt Service 2,440,610 -Restricted for escrow holdings - 402,962Restricted Solid Waste Collection (Other Purpose) 93,431 -Restricted Cemetery (Other Purpose) 88,450 -Land Acquisiton Fund (Other Purpose) 978,157 -Police Forfeiture Fund (Other Purpose) 33,906 -

Total 7,374,394$ 402,962$

Note 13 - Regional Authority Cooperative Ventures

The City is a member of the Western Oakland County Cable CommunicationAuthority (the “Authority”), a cooperative venture of western Oakland Countycommunities. The City appoints one member to the Authority’s governing board,which then approves the annual budget. The Authority receives a management feefrom the cable television company and currently does not receive a subsidy fromthe City. Complete financial statements for the Authority can be obtained from theadministrative offices at 3978 Chanda Court, Highland, Michigan 48031.

The City is also a member of the Resource Recovery and Recycling Authority ofSouthwest Oakland County (the “Recycling Authority”). The Recycling Authorityis incorporated by the cities of Farmington, Farmington Hills, Novi, South Lyon,Southfield, Walled Lake, Wixom, and the Charter City of Lyon. The City appointsone member to the Recycling Authority’s governing board, which then approvesthe annual budget.

67


Note 13 - Regional Authority Cooperative Ventures (Continued)

The Recycling Authority receives its operating revenue from member contributionsand miscellaneous income. During the year, the City contributed approximately$29,594 for its operations. Complete financial statements for the RecyclingAuthority can be obtained from the administrative offices at 2000 West Eight Mile,Southfield, Michigan 48375.

For both the Western Oakland County Cable Communication Authority and theResource Recovery and Recycling Authority of Southwest Oakland County, theCity is unaware of any circumstances that would cause an additional benefit orburden to the participating governments in the near future.

Note 14 - Brownfield Redevelopment Authority

The Brownfield Redevelopment Authority was established pursuant to Public Act381 of 1996 and is governed by the Oakland County Brownfield RedevelopmentAuthority. Upon completion of its purpose, the Authority may be dissolved byresolution of the City Council. The City only collects property tax revenue andremits them to Oakland County. The Oakland County Brownfield RedevelopmentAuthority is responsible for the disbursement and accounting for all moniesreceived. The City collected $23,478 in captured revenue for the BrownfieldRedevelopment Authority for fiscal year 2011.

Note 15 – Accounting and Reporting Change

During the year, the City adopted GASB Statement No. 54, Fund BalanceReporting and Governmental Fund Type Definitions. The objective of thisStatement is to enhance the usefulness of fund balance information by providingclearer fund balance classifications that can be more consistently applied and byclarifying the existing governmental fund type definitions. In order to conform theclassifications of the funds to the appropriate fund types under these newdefinitions, beginning fund balance was restated as follows:

General Budget StabilizationFund Fund

Fund Balance - June 30, 2010 - as previously reported 1,408,152$ 1,951,115$Reclassifications under GASB 54 1,951,115 (1,951,115)Fund Balance - June 30, 2010 - as restated 3,359,267$ -$

68


Note 16 – Upcoming Accounting Pronouncements

In November 2010, GASB issued Statement No. 60, Accounting and FinancialReporting for Service Concession Arrangements. This Statement addressesfinancial reporting related to service concession arrangements which are a type ofpublic-private or public-public partnership. An SCA is an arrangement between atransferor (a government) and an operator (whether a government ornongovernment) in which the transferor conveys to an operator the right andrelation obligation to provide services through the use of infrastructure or anotherpublic asset in exchange for significant consideration and the operator collects andis compensated by fees from third parties. The City is currently evaluating theimpact this standard will have on the financial statements when adopted, during theCity’s 2012-2013 fiscal year.

In November 2010, the GASB issued Statement No. 61, The Financial ReportingEntity Omnibus. This pronouncement, which is an amendment to Statement 14 andStatement 34, modifies certain requirements for inclusion of component units in thefinancial reporting entity. This Statement also amends the criteria for reportingcomponent units as if they were part of the primary government (that is, blending)in certain circumstances. Lastly, the Statement also clarifies the reporting of equityinterests in legally separate organizations. The City is currently evaluating theimpact this standard will have on the financial statements when adopted, during theCity’s 2012-2013 fiscal year.

In December 2010, the GASB issue Statement No. 62, Codification of Accountingand Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB andAICPA Pronouncements. This Statement incorporates into GASB literature certainaccounting and financial reporting guidance issued on or before November 30,1989 that is included in FASB Statements and Interpretations, APB Opinions, andAccounting Research Bulletins of the AICPA Committee on AccountingProcedure. The City is currently evaluating the impact this standard will have onthe financial statements when adopted, during the City’s 2012-2013 fiscal year.

In June 2011, the GASB issued Statement No. 63, Financial Reporting of DeferredOutflows of Resources, Deferred Inflows of Resources, and Net Position. Thestatement will be effective for the City's 2012-2013 fiscal year. The statementincorporates deferred outflows of resources and deferred inflows of resources, asdefined by GASB Concepts Statement No. 4, into the definitions of the requiredcomponents of the residual measure of net position, formerly net assets. Thisstatement also provides a new statement of net position format to report all assets,deferred outflows of resources, liabilities, deferred inflows of resources and netposition. Once implemented, this statement will impact the format and reporting ofthe balance sheet at the government-wide level and also at the fund level.

69


Note 16 – Upcoming Accounting Pronouncements (Continued)

The GASB has recently issued GASB Statement No. 64, Derivative Instruments:Application of Hedge Accounting Termination Provisions. The pronouncementclarifies when a replacement of a swap counterparty or swap counterparty's creditsupport provider results in continuing effective hedging relationships versus arequired termination. The City is evaluating the impact this standard may have onits financial statements when adopted as required in fiscal year 2013.

70


71

Required Supplemental Information

June 30, 2011

72

City of Wixom, MichiganRequired Supplemental InformationBudgetary Comparision Schedule - General FundYear Ended June 30, 2011

Variance WithOriginal Amended Amended Budget Budget Actual Budget

General Fund

Fund Balance - Beginning of year 1,052,366 1,052,366 1,408,152 355,786 Resources (inflows):

Property taxes 6,037,176 6,037,176 5,792,459 (244,717) State sources 906,043 906,043 1,070,137 164,094 Fees and Permits 300,870 300,870 240,358 (60,512) Miscellaneous revenues 792,365 792,365 773,446 (18,919) Transfer from other funds 1,627,499 1,668,940 1,693,166 24,226

Amounts available for appropriation 10,716,319 10,757,760 10,977,718 219,958

Charges to appropriations (outflows) General government:

Legislative 17,626 17,626 15,241 2,385 City Manager 476,832 488,067 487,847 220 Assessor 162,537 162,537 159,970 2,567 Legal Counsel 77,100 77,100 59,559 17,541 Clerk's office 183,426 185,564 178,991 6,573 Information systems 134,759 134,759 134,465 294 Financial administration 412,782 433,742 432,722 1,020 General Operating 569,629 455,871 408,335 47,536 Building Maintenance 61,970 61,970 54,058 7,912 Boards and commissions 1,200 1,200 1,174 26

Cultural and recreational:Cultural center 326,169 328,486 299,399 29,087 Community services/recreation 447,538 451,028 428,752 22,276 Seniors 60,392 60,392 54,308 6,084

Public safety:Fire 916,051 919,586 889,929 29,657 Police 3,212,187 3,258,770 3,012,968 245,802

Public works and enginnering servicesPlanning 34,800 34,800 20,473 14,327 Public works 1,564,491 1,584,191 1,448,878 135,313 Building 427,064 430,865 407,586 23,279 Board of Appeals 3,900 3,900 2,204 1,696

Transfers to other funds:Capital improvement 351,880 351,880 351,880 - Retiree insurance 221,620 221,620 221,620 -

Total charges to appropriations 9,663,953 9,663,953 9,070,359 593,594 Fund Balance - End of year 1,052,366 1,093,807 1,907,359 813,552

73

City of Wixom, MichiganRequired Supplemental InformationBudgetary Comparision Schedule - Major Special Revenue FundsYear Ended June 30, 2011 Variance With

Original Amended Amended Budget Budget Actual Budget

Major Road Act 51 Fund

Fund Balance - Beginning of year -$ -$ -$ -$ Resources (inflows):

State revenue 457,017 457,017 473,414 16,397 Transfer from other funds 178,749 202,549 14,016 (188,533)

Amounts available for appropriation 635,766 659,566 487,430 (172,136)

Charges to appropriations (outflows) Public WorksInterfund transfers - - - - Administrative 45,702 50,002 47,341 2,661 Construction 7,000 7,000 - 7,000 Routine maintenance 280,000 280,000 228,815 51,185 Traffic service 66,727 90,527 73,876 16,651 Snow and ice removal 236,337 232,037 137,398 94,639

Total charges to appropriations 635,766 659,566 487,430 172,136 Fund Balance - End of year -$ - -$ -$

74



Local Road Act 51 Fund


State revenue 195,450 195,450 203,898 8,448 Transfer from other funds 3,348,271 3,878,467 209,391 (3,669,076)

Amounts available for appropriation 3,543,721 4,073,917 413,289 (3,660,628)

Charges to appropriations (outflows) Public WorksAdministrative 19,545 22,045 20,390 1,655 Construction 2,984,176 3,514,372 - 3,514,372 Routine maintenance 303,000 303,000 188,173 114,827 Traffic service 47,000 47,000 51,287 (4,287) Snow and ice removal 190,000 187,500 153,439 34,061

Total charges to appropriations 3,543,721 4,073,917 413,289 3,660,628

Fund Balance - End of year -$ -$ -$ -$

75



Local Road Capital Fund

Fund Balance - Beginning of year 2,851,227$ 2,851,227$ 2,780,924$ (70,303)$ Resources (inflows):

Property Taxes 837,568 837,568 808,223 (29,345) Interest Income 2,000 2,000 2,935 935 County Revenue - 353,464 73,293 (280,171) Miscellaneous Income - - 2,050 2,050

Amounts available for appropriation 3,690,795 4,044,259 3,667,425 (376,834)

Charges to appropriations (outflows) - Localroad programs 2,567,000 3,097,196 1,898,084 1,199,112

Fund Balance - End of year 1,123,795$ 947,063$ 1,769,341$ 822,278$

76

City of Wixom

Notes to Required Supplemental Information

Year Ended June 30, 2011

Budgetary Information Budgetary Information - Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General Fund and all Special Revenue Funds. Subsequent amendments are approved by the City Council. Amendments may be made by the City Council up until the last day of the fiscal year. All annual appropriations lapse at fiscal year end. Financial plans are submitted for all other funds, including Debt Service Funds, Capital Project Funds, and Enterprise Funds.

The City follows these procedures in establishing the budgetary data reflected in the supplementary information:

At the first City Council meeting in April, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Financial plans for all other funds are also submitted at this time.

Budget sessions and public hearings are conducted by the City Council to review the proposed City Manager’s budget/financial plans and to obtain taxpayer comments. If required, a Truth-In-Taxation Public Hearing is held at the second City Council meeting in May.

The budget must be formally adopted no later than the second City Council meeting in May when the budget is legally enacted through passage of a Council resolution.

The budget document presents information by fund, function, department, and line items. Budgets are adopted on a modified accrual basis consistent with generally accepted accounting principles. The legal level of budgetary control adopted by the governing body for the General Fund is the department level. All other funds’ budgets have been adopted on an aggregate basis by function or department.

Formal budgetary integration is employed as a management control device during the year for all funds at a line-item level. Administrative control is maintained through the establishment of more detailed line-item budgets. Budget transfers between budgetary categories, functions or from fund balance are periodically approved by the City Council. Supplemental appropriations for additional expenditures, which require an appropriation of available fund balance, must be approved by the City Council. Appropriations for operations lapse at year end. Appropriations for continuing projects are incorporated in the budget of the ensuing year.

77

City of Wixom



Budgetary Information (Continued)

Department Heads with City Manager approval may make transfers of appropriations annually within a department up to an aggregate of $20,000. The City closely monitors spending by reviewing monthly budget reports and, if necessary, will perform periodic budget amendments to reflect significant changes in the budget. In addition, the City Manager informs the City Council of any changes in the financial plan for the Capital Project Funds, Debt Service Funds and Enterprise Funds. Significant budget amendments during the year are described briefly below. Governmental Units

Capital Improvement Fund Original Budget Amended Budget Changes to Budget

Revenues

MMRMA Grant - 9,000 9,000

Contribution-DPW & Fire Capital Project - 14,692 14,692

Contribution-Forfeiture Fund - 8,751 8,751

Appropriation fr Fund Balance - 37,771 37,771

Contribution-State Grants - 75,413 75,413

Expenditures

Parking Lot Reconstruction 15,000 30,000 15,000

Vehicles - Police 26,000 63,011 37,011

In-Car Terminals 40,000 57,751 17,751

Street Light Improvements - 75,865 75,865

Community Development Block Grant Original Budget Amended Budget Changes to Budget

Revenues

CDBG - Spec Projects 33,287 51,563 18,276

CDBG Public Services 14,266 13,250 (1,016)

Expenditures

Safety Path-Construction 33,287 51,563 18,276

LAYA Services 2,500 939 (1,561)

Other Service 6,766 7,311 545

78

City of Wixom




Governmental Units

Major Road Act 51 Program Original Budget Amended Budget Changes to Budget

Revenues

Contribution-General Fund 171,749 195,549 23,800

Expenditures

Administrative Expenditures 45,702 50,002 4,300

Traffic Service Salaries 12,500 26,000 13,500

Employee Fringe Benefits 9,700 20,000 10,300

Equipment Rental 116,337 112,037 (4,300)

Local Road Act 51 Program Original Budget Amended Budget Changes to Budget

Expenditures

Administrative Expenditures 19,545.00 22,045.00 (2,500)

Equipment Rental

ExpendituresContribution to Local Roads 81,707 79,207 (2,500)

DPW & Fire Capital Project Original Budget Amended Budget Changes to Budget

Revenues

Interest Income - 20 20

Appropriation fr Fund Balance - 14,672 14,672

Expenditures

Contribution - Capital Improvements - 14,692 14,692

Budget Stabilization Original Budget Amended Budget Changes to Budget

RevenuesAppropriation from Fund Bal 535,000 576,441 41,441

Expenditures

Contribution to General Fund 550,000 591,441 41,441

79

City of Wixom




Governmental Units

Special Agency Fund Original Budget Amended Budget Changes to Budget

Revenues

Site Plan Review 15,000 4,942 (10,058)

Engineering Review Fees 15,000 11,100 (3,900)

Site Plan Inspection 40,000 79,916 39,916

Temp C of O 125,000 217,554 92,554

ExpendituresEngineering Review Fees 17,000 32,313 15,313 Site Plan Review 6,000 7,449 1,449 Temp C of O (Comm/Indust) 60,000 161,750 101,750

Component Units

Downtown Development Authority Original Budget Amended Budget Changes to Budget

Revenues

Property Taxes - DDA 211,104 216,013 4,909

Special Millage 10,941 11,492 551

Interest & Penalty - Delq - 1,442 1,442

Appropriations of Fund Balance (7,341) 3,600 10,941

Expenditures

Contribution to DDA/VCA Development Debt 211,104 228,947 17,843

The budget amendments were requested and approved for the recognition of grants, contributions, and other revenue, additional capital improvement expenditures, to adjust expenditures in the Major and Local Act 51 Road Program, to adjust the Community Development Block Grant budget, to adjust the revenues and expenditures of the Special Agency Fund, and to close out the DPW & Fire Capital Project Fund. In addition, budget amendments were requested and approved for the Downtown Development Authority, a Component Unit, to increase contributions for debt service for the DDA/VCA Development Bonds.

Amounts encumbered for purchase orders, contracts, etc., are not tracked during the year. Budget appropriations are considered to be spent once the goods are delivered or the services rendered. Budget amounts of the of the revenues and expenditures presented for the Governmental Funds are a summarization of the budgeted amounts as originally adopted or as amended by City Council. During the current year, the budget was amended in a legally permissible manner. Budgets have been prepared on a basis consistent with generally accepted accounting principles (GAAP), except that transfers have been included as revenues and expenditures.

80



A reconciliation of the budgetary comparison schedules to the fund-based statement ofchanges in fund balance is as follows:

Total Revenue Total ExpendituresGeneral Fund (per operating statement) 8,303,744$ 7,817,761$Less: Budget Stabilization Fund Interest Income (14,813) -Add: Budget Stabilization Contribution 591,441 -Add: Major Road Act 51 Fund revenue 473,414 -Add: Local Road Act 51 Fund Revenue 203,898 -Add: DPW operating expenditure allocated to Major RoadAct 51 Fund - 487,430Add: DPW operating expenditure allocated to Local RoadAct 51 Fund - 413,288Add: Capital Improvement Fund Transfer - 351,880Add: Special Agency Transfer 11,882

Amounts per General Fund budget statement 9,569,566$ 9,070,359$

81

Other Supplemental Information

June 30, 2011

82

City of Wixom, MichiganOther Supplemental InformationBudgetary Comparison Schedule - Major Capital Project FundYear Ended June 30, 2011 Variance With


Capital Improvement Fund

Fund Balance - Beginning of year 587,519$ 587,519$ 621,770$ 34,251$ Resources (inflows):

State Grants - 75,413 75,413 - Other Grants - 9,000 9,000 - Cemetery Fund contribution 1,000 1,000 776 (224) General Fund contribution 351,880 351,880 351,880 - Other Funds contribution - 23,443 23,443 - Interest Income - - 616 616

Amounts available for appropriation 940,399 1,048,255 1,082,898 34,643


General Operating 7,000 7,000 6,795 205 Cultural and recreational:

Community services 15,500 15,500 3,668 11,832 Parks and recreation 26,000 26,000 8,667 17,333

Engineering services: Public services 35,000 35,000 2,240 32,760

Public safety:Fire 50,000 65,000 57,366 7,634 Police 72,600 127,362 124,774 2,588

Public works Public works - DPW 26,000 101,865 101,865 - Cemetery 1,000 1,000 776 224 Debt Service 109,780 109,780 24,342 85,438

Total charges to appropriations 342,880 488,507 330,493 158,014

Fund Balance - End of year 597,519$ 559,748$ 752,405$ 192,657$

83

City of Wixom, MichiganOther Supplemental InformationFinancial Plan Comparision Schedule - Major Debt Service FundYear Ended June 30, 2011 Variance With


Major Road Debt Service Fund


Property Taxes 822,011 822,011 803,116 (18,895) Interest Income 600 600 659 59


Charges to appropriations (outflows) - DebtInterest expense 66,164 66,164 66,163 1 Principal payment 805,000 805,000 805,000 - Miscellaneous expense 1,150 1,150 559 591 Total charges to appropriations 872,314 872,314 871,722 592

Fund Balance - End of year 11,804$ 11,804$ 7,593$ (4,211)$

84

City of Wixom, MichiganOther Supplemental InformationFinancial Plan Comparision Schedule - Special Assessment Debt Service FundYear Ended June 30, 2011 Variance With


Special Assessment Fund


Interest Income 500 500 358 (142)

Amounts available for appropriation 640,235 640,235 829,448 189,213

Charges to appropriations (outflows) - DebtInterest expense 92,228 92,228 92,228 - Principal payment 125,000 125,000 400,000 (275,000) Bond Defeasance Costs - - 11,476 (11,476) Miscellaneous expense 775 775 1,129 (354) Total charges to appropriations 218,003 218,003 504,833 (286,830)


85

City of Wixom, MichiganOther Supplemental InformationBudgetary Comparison Schedule - Other Special Revenue FundsYear Ended June 30, 2011 Variance With


Budget Stabilization

Fund Balance - Beginning of year 2,989,245$ 2,989,245$ 1,951,115 (1,038,130)$ Resources (inflows):

Interest Income 15,000 15,000 14,813 (187) Amounts available for appropriation 3,004,245 3,004,245 1,965,928 (1,038,317)

Charges to appropriations (outflows) -Contribution to General Fund 550,000 591,441 591,441 -

Total charges to appropriations 550,000 591,441 591,441 -

Fund Balance - End of year 2,454,245$ 2,412,804$ 1,374,487$ (1,038,317)$

The Budget Stabilization Fund is blended with the General Fund as of FY2010-2011

86

City of Wixom, MichiganOther Supplemental InformationCombining Balance SheetNonmajor Governmental Funds June 30, 2011

Community Land Safety Solid Special Major Road DPW & FireDevelopment Acquisition Forfeiture Path Waste Agency Cemetery Capital Progam Construction

Cash and investments -$ 978,157$ 32,595$ 28,130$ 124,303$ 53,071 87,226$ 774,310$ -$ Receivables - Net 1,378 - - - 6,164 - - - - Due from other funds - - 1,311 16 38 1,155,927 1,224 14,590 -

Total assets 1,378$ 978,157$ 33,906$ 28,146$ 130,505$ 1,208,998 88,450$ 788,900$ -$

LiabilitiesAccounts payable -$ -$ -$ 35,707$ 37,074$ 5,243$ -$ 14,590$ -$ Accrued and other liabilities - - - 4 - - - - - Due to other funds 1,378 - - - - - - - -

Total liabilities 1,378 - - 35,711 37,074 5,243 - 14,590 -

Fund Balances - UnreservedNonspendable: - - - - - - - - - Restricted:

Land acquisition - 978,157 - - - - - - - Police forfeitures - - 33,906 - - - - - - Roads & Bike Paths - - - - - - - 774,310 - Solid waste activities - - - - 93,431 - - - - Development contracts - - - - - 1,203,755 - - - Debt - - - - - - - - -

Committed:Cemetery - - - - - - 88,450 - -

Assigned: - - - - - - - - - Unassigned: - - - (7,565) - - - - -

Total Fund Balance - 978,157 33,906 (7,565) 93,431 1,203,755 88,450 # 774,310 -

Total liabilities and fund balances 1,378$ 978,157$ 33,906$ 28,146$ 130,505$ 1,208,998 88,450$ 788,900$ -$

Nonmajor Special Revenue Funds

Assets

Liabilities and Fund Balances

Capital Project Funds

87

Development DPW & Fire Total NonmajorDebt Building Governmental Funds

259,180$ 22,333$ 2,359,305$ - - 7,542 - - 1,173,106

259,180$ 22,333$ 3,539,953$

-$ 6,295$ 98,909$ - - 4 - 2,125 3,503 - 8,420 102,416

- - -

- - 978,157 - - 33,906 - - 774,310 - - 93,431 - - 1,203,755

259,180 13,913 273,093

- - 88,450 - - - - - (7,565)

259,180 13,913 3,437,537

259,180$ 22,333$ 3,539,953$

Debt Service Funds

88

City of Wixom, MichiganOther Supplemental InformationCombining Statement of Revenue, Expenditures,and changes in Fund Balance-Nonmajor Governmental FundsYear Ended June 30, 2011

Community Land Safety Solid Special DPW & Fire

Development Acquisition Forfeiture Path Waste Agency Cemetery ConstructionRevenues

Property taxes -$ -$ -$ 216,618$ 1,664$ -$ -$ -$ Solid waste collection - - - - 524,747 - - - Federal Revenue 64,124 - - - - - - - Component unit contributions - - - - - - - - Permits & Fees - - - - - 322,366 - - Rental income - 160 - - - - - Donations - - - - - 3,686 2,000 - Interest - 1,381 11 243 27 47 113 20 Other revenue - - 21,527 - 9,154 20,947 3,400 -

Total revenues 64,124 1,541 21,538 216,861 535,592 347,046 5,513 20

ExpendituresCurrent:

City Manager - - - - - 3,634 - - General operating 13,246 600 - - - - 285 - Police department - - 1,615 - - 2,335 - - Building - - - - - 291,572 - - Solid waste - - - - 470,194 - - - Public works 50,878 - - - - - - - Land acquitision - 1,492 - - - - -

Other Capital Improvements - - - 397,798 - - - - Debt service:

Principal - - - - - - - - Interest - - - - - - - -

Total expenditures 64,124 2,092 1,615 397,798 470,194 297,541 285 -

Excess of Revenues Over(Under)Expenditures - (551) 19,923 (180,937) 65,398 49,505 5,228 20

Other Financing Sources (Uses)Transfers in - - - - - - - - Transfers out - - (8,751) - - (11,884) (776) (14,692)

Total other financing sources (uses) - - (8,751) - - (11,884) (776) (14,692)

Net Change in Fund Balances - (551) 11,172 (180,937) 65,398 37,621 4,452 (14,672)

Fund Balances - Beginning of year - 978,708 22,734 173,372 28,033 1,166,134 83,998 14,672

Fund Balances - End of year -$ 978,157$ 33,906$ (7,565)$ 93,431$ 1,203,755$ 88,450$ -$

Nonmajor Special Revenue Funds Capital

89

Major Road Development DPW & Fire Total Nonmajor

Capital Program Debt Building Governmental

Funds

-$ -$ 273,379$ 491,661$ - - - 524,747 - - - 64,124

16,540 228,947 - 245,487 - - - 322,366 - - - 160.00 - - - 5,686

1,096 473 227 3,638 - - - 55,028

17,636 229,420 273,606 1,712,897

- - - 3,634 - 500 500 15,131 - - - 3,950 - - - 291,572 - - - 470,194 - - - 50,878 - - - 1,492

21,540 - - 419,338

- 160,000 260,000 420,000 - 224,535 34,117 258,652

21,540 385,035 294,617 1,934,841

(3,904) (155,615) (21,011) (221,944)

- - - - - - - (36,103)

- - - (36,103)

(3,904) (155,615) (21,011) (258,047)

778,214 414,795 34,924 3,695,584

774,310$ 259,180$ 13,913$ 3,437,537

Debt Service FundsProject Funds

90

City of Wixom, MichiganOther Supplemental InformationBudgetary Comparison Schedule - Nonmajor Special Revenue FundsYear Ended June 30, 2011 Variance With


Community Development Block Grant Fund


CDBG Revenue 47,553 64,813 64,124 (689)

Amounts available for appropriation 47,553 64,813 64,124 (689)

Charges to appropriations (outflows) -CDBG Expenditures 47,553 64,813 64,124 689


91



Land Acquisition


Rental Income - - 160 160 Interest Income 1,000 1,000 1,380 380


Charges to appropriations (outflows) -Land Acquisition Expenditures 702,663 702,663 2,092 700,571

Fund Balance - End of year -$ -$ 978,156$ 978,156$

92



Forfeiture Fund


Interest Income 50 50 11 (39) Miscellaneous Income - 1,615 21,527 19,912


Charges to appropriations (outflows) -Forfeiture Expenditures 8,591 1,615 1,615 - Contribution-Capital Improvement Fund - 8,751 8,751 -

Total charges to appropriations 8,591 10,366 10,366 -


93



Safety Bike Path

Fund Balance - Beginning of year 194,496$ 194,496$ 173,372$ (21,124)$ Resources (inflows):

Property Taxes 221,930 221,930 216,618 (5,312) Interest Income 750 750 243 (507)


Charges to appropriations (outflows) -

Safety Bike Path Expenditures 417,176 417,176 397,798 19,378

Fund Balance - End of year -$ -$ (7,565)$ (7,565)$

94



Solid Waste Collection


Solid Waste Collection 472,160 472,160 526,411 54,251 Miscellaneous Income 500 500 9,154 8,654 Interest Income 15 15 27 12


Charges to appropriations (outflows) -Solid Waste Collection Expenditures 472,675 472,675 470,194 2,481


95



Special Agency Fund

Fund Balance - Beginning of year 1,131,386$ 1,131,386$ 1,166,134$ 34,748$ Resources (inflows):

Permits & Fees 195,000 313,512 322,366 8,854 Interest Income - - 47 47

Miscellaneous Income 3,000 3,000 24,632 21,632

Amounts available for appropriation 1,329,386 1,447,898 1,513,179 65,281


City Manager - - 3,634 (3,634) Special Agency Expenditures 190,000 308,512 305,789 2,723

Total charges to appropriations 190,000 308,512 309,423 (911)

Fund Balance - End of year 1,139,386$ 1,139,386$ 1,203,756$ 64,370$

96



Cemetery


Sale of Lots 5,000 5,000 3,400 (1,600) Donations - - 2,000 2,000 Interest Income 100 100 113 13


Charges to appropriations (outflows) -Cemetery Expenditures 750 750 285 465 Transfer to Capital Improvements 1,000 1,000 776 224 Total charges to appropriations 1,750 1,750 1,061 689


97

City of Wixom, MichiganOther Supplemental InformationFinancial Plan Comparision Schedule - Nonmajor Capital Project FundYear Ended June 30, 2011 Variance With


DPW & Fire Construction Fund

Fund Balance - Beginning of year -$ 14,672$ 14,672$ -$ Resources (inflows):

Interest Income - 20 20 -

Amounts available for appropriation - 14,692 14,692 -

Charges to appropriations (outflows) - Contribution to Capital Improvement - 14,692 14,692 -


98

City of Wixom, MichiganOther Supplemental InformationFinancial Plan Comparision Schedule - Nonmajor Capital Project FundYear Ended June 30, 2011 Variance With


Major Road Capital Fund

Fund Balance - Beginning of year 831,920$ 831,920$ 778,214$ (53,706)$ Resources (inflows):

Interest Income 1,700 1,700 1,096 (604) Contribution - LDFA Project 2,000 2,000 16,540 14,540


Charges to appropriations (outflows) - Majorroad programs 7,000 7,000 21,540 (14,540)


99


Other Supplemental Information

Fiduciary FundStatement of Changes in Assets and Liabilitiesfor the fiscal year ended June 30, 2011

Balance BalanceJuly 1, 2010 Additions Deductions June 30, 2011

Assets Cash and cash equivalents 475,288 32,417,618 32,451,128 441,778 Accounts Receivable 251 812 251 812

Total assets 475,539 32,418,430 32,451,379 442,590

LiabilitiesDeposits and other liabilities 475,539 32,418,430 32,451,379 442,590

Total liabilites 475,539 32,418,430 32,451,379 442,590

100

City of Wixom, MichiganDowntown Development AuthorityCombining Statement of Net Assets June 30, 2011

DDA (Modified Accrual Basis)

Accrual adjustments

Full Accrual Basis

AssetsCash and investments 210,696 - 210,696 Accounts receivable 1,835 - 1,835 Capital assets - Net - 377,052 377,052

Total assets 212,531 377,052 589,583 Liabilities

Long term debt - 44,000 44,000 Total liabilities - 44,000 44,000

Fund balance/ Net assetsFund balance - unassigned 212,531 (212,531) - Net assets:

Invested in captial assets, net of related debt - 333,052 333,052 Unrestricted - 212,531 212,531

Total fund balance/ net assets 212,531 333,052 545,583

Combining Statement of ActivitiesYear ended June 30, 2010

Revenues:DDA (Modified Accrual Basis)

Accrual adjustments

Full Accrual Basis

Property tax capture 230,782 - 230,782 Donations 2,000 - 2,000 Interest income 347 - 347

Total revenue 233,129 - 233,129 Expenditures:

Administrative 1,243 - 1,243 Contribution to City 228,947 - 228,947 Depreciation - 22,748 22,748

Total expenditures 230,190 22,748 252,938 Change in fund balance/ net assets 2,939 (22,748) (19,809)

Fund balance/ Net assets:Beginning of year 209,592 355,800 565,392 End of year 212,531 333,052 545,583

101

City of Wixom, MichiganLocal Development Finance AuthorityCombining Statement of Net Assets

June 30, 2011

LDFA (Modified Accrual Basis)

Accrual adjustments

Full Accrual Basis

Assets

Cash and investments 3,032,526$ - 3,032,526$ Total assets 3,032,526 - 3,032,526

LiabilitiesAccounts payable 14,499 - 14,499

Total liabilities 14,499 - 14,499 Fund balance/ Net assetsFund balance - unassigned 3,018,027 (3,018,027) - Net assets:Unrestricted - 3,018,027 3,018,027

Total fund balance/ net assets 3,018,027$ -$ 3,018,027$

Combining Statement of Activities Year Ended June 30, 2011

Revenues:LDFA (Modified Accrual Basis)

Accrual adjustments

Full Accrual Basis

Interest income 10,506 - 10,506

Expenditures: Public Works Expenditures 17,550 - 17,550

Change in fund balance/ net assets (7,044) - (7,044)

Fund balance/ Net assets:Beginning of year 3,025,071 - 3,025,071 End of year 3,018,027$ -$ 3,018,027$

102

Notes to Other Supplemental Information Nonmajor Governmental Funds


Special Revenue Funds

Special Revenue Funds are classified as such because some authority other than the Cityrequires special/legal restrictions and accounting procedures. The Special Revenue Funds(Nonmajor) of the City are shown below:

Community Development Block Grant (CDBG) Fund -Community DevelopmentBlock Grant (CDBG) Fund contains monies allocated annually to the City forreimbursement from the Federal Community Block Grant programs, which isadministrated by Oakland County. These funds are used for development and completionof projects that serve the needs of persons of low to moderate income within the City.

Land Acquisition Fund - The Land Acquisition Fund contains the proceeds of themillage levied for the purpose of acquiring land. The land acquisition activities aredesigned to preserve the natural resources of the City and to facilitate controlled growthand quality economic development. The program was funded through property taxes overa 10 year period ending FY 1998-99.

Forfeiture Fund - The Forfeiture Fund contains monies received from the forfeiture ofdrugs or equipment used in the manufacture, sale, or use of drugs. These funds must beused in the fight against drugs.

Safety Bike Path - The Safety Path Capital Program Fund was created to record thecapital outlays of the Bike Path Improvement programs that were approved by thecitizens of the City in FY 1995-96. This fund contains the proceeds of a six year millagelevied for the purpose of building bike paths. In 2008, Wixom voters approved threetenths of a mill for 15 years (through FYE 2023) for the purpose of providing additionalrevenues for bike path construction including property acquisition and planning.

Solid Waste Collection Fund - This program contains resources to fund solid wastecollection services provided to Wixom residents by contractors retained by the City.Services included in this department are for refuse collection. This program includes theSolid Waste program for the City. A Special Revenue Fund was setup to account for thisactivity in the Fiscal Year 1999-2000.

Special Agency - The Special Agency Fund was established to show building developeraccounts and other special agency accounts which were transferred from a Trust andAgency fund to this Special Revenue fund.

Cemetery Fund - The Cemetery Board is responsible for the operations of the WixomCemetery. The City Clerk is responsible for recordkeeping of all Cemetery records. TheCemetery Board is made up of 5 members, appointed by the Mayor, with theconfirmation of the City Council.

103

Notes to Other Supplemental Information Nonmajor Governmental Funds


Budget Stabilization - The Budget Stabilization Fund was established along with the 5year Financial Action Plan to assist the City in times when instability occurs in thebusiness cycle or unanticipated events/unexpected emergencies occur which cause asignificant downturn in revenues. This can be measured by the magnitude and duration ofthe revenue shortfall. The Budget Stabilization Fund can be used instead of the Cityborrowing, increasing taxes, or significantly reducing expenditures. Since cities areconstrained by the State law in their ability to borrow, it often leaves only the alternativesof increased taxes and/or significant decreases in spending.

Capital Project Funds

Capital Project Funds are used to account for the construction of major assets of the Citysuch as buildings and major infrastructure improvements.

DPW & Fire Building Construction Fund - The DPW & Fire Building ConstructionFund was created to record the capital outlays for the cost of acquiring, constructing,equipping and furnishing a new Department of Public Works building and salt storagefacility, and expansions to and renovations of a Fire Station building that was approvedby the citizens of the City in FY 1999-2000. The revenues consist of bond proceeds frombonds issued in 2000, and investment earnings.

Major Road Capital Fund - The Major Road Capital Fund accounts for the repairs andconstruction of the City’s major streets and assists in the funding of the Major RoadFund. The revenues consist of Federal, State and County Grants, State-shared gasolineand weight tax collections, bond proceeds from bonds issued in 1996 and 1997, andinvestment earnings. A portion of the Major Road bonds were defeased in September2009.

Debt Service Funds

Debt Service Funds are used to account for the accumulation of resources for, and thepayment of, long-term debt principal and interest.

DPW & Fire Construction Debt Fund - This fund was established to account for thepayment of annual principal and interest on $2,615,000 of bonds sold for building a newDPW facility and to renovate a fire station with the City. These annual requirements aremet from a special ad valorem tax. The DPW & Fire Construction bonds were defeasedin September 2009.

DDA/VCA Development Debt Fund -This fund was established to account for thepayment of annual principal and interest on $5,750,000 of bonds sold for building theDDA/VCA Development Project Fund. The Village Center Area District is intended toallow for the development of a fully integrated, mixed use, pedestrian oriented VillageCenter Area (VCA). These annual requirements are met from the DDA/VCA ad valoremtax.

104


105

Statistical Section

June 30, 2011

This part of the Comprehensive Annual Financial Report presents detailed information as acontext for understanding what the information in the financial statements, note disclosures,and required supplementary information says about the City’s overall financial health.

The statistical section is organized into the following main categories:

Financial Trends - These schedules contain financial trend information to help the readerunderstand how the City’s financial performance and well-being have changed over time.

Revenue Capacity - These schedules contain revenue information to help the reader assess theCity’s most significant local revenue source, the property tax.

Debt Capacity - These schedules contain debt capacity information to help the reader assessthe affordability of the City’s current levels of outstanding debt, and the City’s ability to issueadditional debt in the future.

Demographics and Economic Information - These schedules offer demographic andeconomic indicators to help the reader understand the environment within which the City’sfinancial activities take place.

Operating Information - These schedules contain service and infrastructure data to help thereader understand how the information in the City’s financial report relates t o the services theCity provides and the activities it performs.

This part of the Comprehensive Annual Financial Report presents detailed information as acontext for understanding what the information in the financial statements, note disclosures,and required supplementary information says about the City’s overall financial health.

The statistical section is organized into the following main categories:

Financial Trends - These schedules contain financial trend information to help the readerunderstand how the City’s financial performance and well-being have changed over time.

Revenue Capacity - These schedules contain revenue information to help the reader assess theCity’s most significant local revenue source, the property tax.

Debt Capacity - These schedules contain debt capacity information to help the reader assessthe affordability of the City’s current levels of outstanding debt, and the City’s ability to issueadditional debt in the future.

Demographics and Economic Information - These schedules offer demographic andeconomic indicators to help the reader understand the environment within which the City’sfinancial activities take place.

Operating Information - These schedules contain service and infrastructure data to help thereader understand how the information in the City’s financial report relates t o the services theCity provides and the activities it performs.

Sources - Unless otherwise noted, the information in these schedules is derived from theComprehensive Annual Financial Reports for the relevant year. The City implemented GASBStatement 34 in 2004; schedules presenting government- wide information include informationbeginning in that year.

106

City of Wixom, MichiganNet Assets by Component

Last Nine Fiscal Years

June 302003 2004 2005 2006 2007 2008 2009 2010 2011

Governmental ActivitiesInvested in capital assets -Net of related debt $27,643,583 $28,805,520 $24,764,536 $29,466,163 $31,546,198 $30,612,313 $34,079,227 $31,739,260 $32,746,883

Restricted 1,652,285 1,596,127 6,892,928 5,653,914 7,451,069 6,545,373 7,949,158 9,853,994 7,374,394Unrestricted 2,624,089 2,684,098 3,601,867 3,948,124 3,767,042 6,594,838 3,767,353 3,294,482 3,203,641

Total Net Assets 31,919,957 33,085,745 35,259,331 39,068,201 42,764,309 43,752,524 45,795,738 44,887,736 43,324,918

Business-Type ActivitiesInvested in capital assets -Net of related debt 38,875,514 39,657,144 40,213,251 41,189,253 41,806,613 42,708,561 42,979,310 43,611,831 44,821,942

Restricted 1,211,036 1,168,284 1,196,187 1,143,419 1,030,759 596,575 401,851 402,394 402,962Unrestricted 10,122,807 9,989,738 10,388,014 10,828,759 11,034,157 13,103,924 12,972,744 11,827,502 9,744,311

Total Net Assets 50,209,357 50,815,166 51,797,452 53,161,431 53,871,529 56,409,060 56,353,905 55,841,727 54,969,215

Primary Government in TotalInvested in capital assets -Net of related debt 66,519,097 68,462,664 64,977,787 70,655,416 73,352,811 73,320,874 77,058,537 75,351,091 77,568,825

Restricted 2,863,321 2,764,411 8,089,115 6,797,333 8,481,828 7,141,948 8,351,009 10,256,388 7,777,356Unrestricted 12,746,896 12,673,836 13,989,881 14,776,883 14,801,199 19,698,762 16,740,097 15,121,984 12,947,952

Total Net Assets $82,129,314 $83,900,911 $87,056,783 $92,229,632 $96,635,838 $100,161,584 $102,149,643 $100,729,463 $98,294,133

107

City of Wixom, MichiganChanges in Net Assets Governmental Activities


June 302003 2004 2005 2006 2007 2008 2009 2010 2011

ExpensesGeneral government $2,758,567 $2,687,637 $2,921,913 $2,538,344 $2,338,463 $4,240,934 $2,493,525 $2,617,704 $2,631,376Public Safety 3,412,961 3,540,770 3,814,070 3,777,247 3,961,579 4,287,129 4,571,986 4,444,068 4,511,511Public works 4,695,373 3,275,746 3,583,028 6,880,440 4,338,637 4,292,285 4,339,179 4,415,449 4,373,501Health and welfare 420,897 421,180 434,511 452,484 480,362 505,670 474,337 479,333 470,194Recreation and culture 752,899 760,185 686,579 689,549 814,541 818,698 833,878 807,578 857,384

Interest on long-term debt 601,912 549,301 557,732 745,797 697,067 644,378 609,698 560,704 445,809Total expenses 12,642,609 11,234,819 11,997,833 15,083,861 12,630,649 14,789,094 13,322,603 13,324,836 13,289,775

Program RevenuesCharges for services:

General government 38,838 128,897 133,607 203,170 227,324 233,200 274,077 236,369 237,507Public safety 103,049 101,708 96,849 97,045 162,061 166,442 137,935 125,333 140,345Public works 294,042 462,315 621,758 4,246,625 1,473,459 672,399 840,188 562,942 769,118Health and welfare 415,315 443,715 450,891 459,615 472,432 489,648 466,900 480,494 486,895Recreation and culture 288,788 251,438 197,286 209,845 241,015 223,153 253,470 239,656 252,368

Total charges for services 1,140,032 1,388,073 1,500,391 5,216,300 2,576,291 1,784,842 1,972,570 1,644,794 1,886,233

Operating grants and contributions 1,242,209 825,245 995,400 981,848 903,346 890,440 871,008 763,095 757,355Capital grants and contributions 996,262 341,116 1,363,243 624,660 1,320,612 225,661 510,029 122,938 225,125

Total program revenues 3,378,503 2,554,434 3,859,034 6,822,808 4,800,249 2,900,943 3,353,607 2,530,827 2,868,713

Net Expense -9,264,106 -8,680,385 -8,138,799 -8,261,053 -7,830,400 -11,888,151 -9,968,996 -10,794,009 -10,421,062

General RevenueTaxes 7,447,805 8,266,596 8,499,148 8,747,222 9,107,246 9,689,543 8,591,365 8,649,835 7,576,257State-shared revenue 1,475,681 1,145,786 1,143,954 1,121,576 1,088,234 1,089,023 1,036,445 926,088 923,211Unrestricted interest earnings 176,278 165,605 375,349 631,714 945,427 593,185 125,126 80,333 73,164Miscellaneous 250,765 265,435 272,228 181,879 385,601 254,615 315,837 229,751 285,612Transfers in 0 0 0 0 0 1,250,000 0 0 0Sale of capital asset 225 2,751 21,706 -70,895 0 0 0 0 0

Total general revenue 9,350,754 9,846,173 10,312,385 10,611,496 11,526,508 12,876,366 10,068,773 9,886,007 8,858,244

Transfers 0 0 0 0 0 0 0 0 0

Change in Net Assets $86,648 $1,165,788 $2,173,586 $2,350,443 $3,696,108 $988,215 $99,777 -$908,002 -$1,562,818

Year Ended

108

City of Wixom, MichiganChanges in Net Assets Business-types Activities


June 302003 2004 2005 2006 2007 2008 2009 2010 2011

ExpensesWater $2,229,937 $2,493,823 $2,612,599 $2,908,067 $2,898,895 $2,647,044 $2,446,972 $2,342,184 $2,542,313Sewer 1,552,886 1,540,899 1,622,250 1,693,678 1,674,257 1,785,727 1,819,319 1,952,189 2,026,902Water-Interest on long-term debt 439,844 425,089 406,337 384,378 361,942 338,579 314,756 290,132 264,918Sewer-Interest on long-term debt 177,797 154,233 130,237 105,662 80,575 82,306 0 0 0

Total expenses 4,400,464 4,614,044 4,771,423 5,091,785 5,015,669 4,853,656 4,581,047 4,584,505 4,834,133

Program RevenuesCharges for services:

Water 1,613,525 1,784,532 2,082,801 2,598,147 2,383,725 2,365,878 2,138,574 1,879,168 1,848,491Sewer 964,633 840,249 917,355 1,057,666 921,465 981,738 870,339 931,480 1,055,579

Total charges for services 2,578,158 2,624,781 3,000,156 3,655,813 3,305,190 3,347,616 3,008,913 2,810,648 2,904,070

Operating grants and contributions 0 0 0 0 0 1,250,000 0 0 0Capital grants and contributions 1,126,915 1,285,643 1,276,985 1,144,229 702,385 2,309,904 319,147 93,708 83,940

Total program revenues 3,705,073 3,910,424 4,277,141 4,800,042 4,007,575 6,907,520 3,328,060 2,904,356 2,988,010

Net Expense -695,391 -703,620 -494,282 -291,743 -1,008,094 2,053,864 -1,252,987 -1,680,149 -1,846,123

General RevenueTaxes 1,276,019 1,240,650 1,234,376 1,211,827 1,141,955 1,143,994 1,069,444 1,083,578 900,066Unrestricted interest earnings 124,485 68,779 242,192 443,895 576,237 445,673 128,388 84,393 73,545Gain on Sale of Capital Asset 0 0 0 0 0 144,000 0 0 0

Total general revenue 1,400,504 1,309,429 1,476,568 1,655,722 1,718,192 1,733,667 1,197,832 1,167,971 973,611

Transfers 0 0 0 0 0 1,250,000 0 0 0

Change in Net Assets $705,113 $605,809 $982,286 $1,363,979 $710,098 $2,537,531 -$55,155 -$512,178 -$872,512

Year Ended

109


Changes in Fund Balances - Governmental Funds Activities

Last Ten Fiscal Years

Revenues 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Property taxes 6,778,447 $7,565,218 $7,391,143 $8,214,016 $8,470,713 8,729,655 8,974,644 9,302,904 8,412,232 8,356,097 7,895,459Solid waste collection 332,706 371,315 413,390 443,809 449,831 456,753 466,236 486,442 449,930 493,955 524,747Federal grants 79,625 156,686 71,415 56,449 10,750 22,279 71,896 83,479 25,760 27,360 64,124State revenue 2,526,209 4,425,755 2,725,573 1,842,705 1,884,002 2,348,972 1,816,655 1,794,601 1,744,331 1,604,636 1,822,862County grants 29,798 142,161 49,480 211,902 22,023 0 0 0 37,982 0 73,293Component unit contributions 0 0 0 0 0 380,246 836,256 270,391 695,549 358,740 245,487Charges for services 196,182 220,691 245,140 399,243 347,453 786,189 764,521 758,044 539,178 588,413 598,047Fines and forfeits 48,695 55,773 55,161 50,943 44,102 56,622 63,853 77,042 60,093 59,973 60,635Licenses and Permits 571,030 437,161 327,717 374,315 558,003 1,078,095 877,523 567,726 704,684 420,420 621,072Rental income 90,912 80,537 96,699 106,417 296,365 92,768 115,337 87,830 89,041 82,165 92,120Donations 14,916 9,772 31,396 64,745 141,938 289,547 263,915 202,113 192,561 23,594 5,686Interest 1,010,272 373,942 176,279 165,606 375,350 631,715 945,429 593,184 125,124 269,722 73,782Other Cost Adjustment 0 0 0 0 0 0 483,649 0 0 0 0Other revenue 156,378 155,154 810,959 295,845 2,051,853 269,995 843,829 292,660 372,479 309,048 392,301

Total Revenue 11,835,170 13,994,165 12,394,352 12,225,995 14,652,383 15,142,836 16,523,743 14,516,416 13,448,944 12,594,123 12,469,615

ExpendituresCurrent:

Legislative 20,251 22,183 $17,089 22,015 18,736 17,774 17,199 21,199 16,861 17,134 15,241City Manager 342,932 365,494 377199 379,882 420,517 423,459 438,871 443,222 464,430 474,822 491,481Assessor 144,597 167,160 180468 190,555 199,083 198,297 197,919 183,863 190,498 180,326 159,970Legal assistance 229,620 201,459 211862 199,161 119,351 119,342 76,402 80,425 94,650 69,490 59,559Clerk 175,481 185,204 195994 199,554 223,768 216,289 175,755 170,939 173,477 168,781 178,991Information systems 112,742 124,401 116634 128,592 125,570 132,918 135,537 123,589 119,983 135,973 134,465Financial administration 273,718 317,934 348969 356,424 384,106 395,741 391,965 414,779 432,282 435,763 432,722General operating 314,850 285,751 366428 369,253 955,404 599,024 583,722 453,668 501,073 457,400 431,261City building maintenance 47,826 53,887 51,005 54,922 63,049 49,218 47,033 48,051 47,496 59,886 54,058Boards and commissions 89,940 113,320 107620 99,574 82,904 118,762 101,554 123,208 100,366 89,037 78,159Cultural center 234,372 238,427 256982 270,025 273,899 287,888 302,194 343,536 295,881 300,148 303,067Community services/recreation 355,864 402,835 454410 431,553 340,260 415,034 536,813 490,630 467,559 434,767 437,419Department of Public Service 200,802 201,392 223333 145,985 117,155 0 0 0 48,091 0 2,240Fire Department 503,685 571,066 650937 591,218 663,004 940,456 1,279,432 891,072 1,854,362 1,048,599 947,295Police department 2,237,381 2,485,142 2576048 2,717,925 2,962,298 3,014,668 3,092,600 3,171,205 3,240,392 3,187,419 3,141,692Building department 575,580 510,410 552620 512,454 582,213 1,255,448 990,796 820,701 720,921 744,964 699,158Solid waste 368,698 400,239 420897 421,180 434,511 452,484 480,361 505,670 474,337 479,333 470,194Public works 936,675 978,684 1136383 1,128,077 1,238,868 1,615,273 1,762,484 1,903,766 1,864,432 1,603,057 1,601,620Educational 0 0 0 0 0 21,394 23,181 0 1,651 32,012 2,267Health Benefits-Retirees 0 0 0 0 0 0 0 1,805,530 0 923,812 221,620Other capital improvements 3,741,462 6,613,083 5672693 2,057,705 3,578,124 6,895,184 1,666,279 626,833 1,303,059 1,223,038 2,317,422

Debt service:Principal 690,000 860,000 960000 1,025,000 715,000 1,260,000 1,320,000 1,395,000 1,565,000 1,205,000 1,625,000Defeasance 0 0 0 0 0 0 0 0 0 122,800 11,476Interest 842,161 648,932 613606 558,144 411,968 741,353 708,546 656,023 622,621 439,373 442,072

Total Expenditures 12,438,637 15,747,003 15491177 11,859,198 13,909,788 19,170,006 14,328,643 14,672,909 14,599,422 13,832,934 14,258,449

Excess of Revenues Over (Under) Expenditures -603,467 -1,752,838 -3,096,825 366,797 742,595 -4,027,170 2,195,100 -156,493 -1,150,478 -1,238,811 -1,788,834

Other Financing Sources (Uses)

Transfers in 3,310,846 6,431,976 5441395 2,683,223 2,500,121 2,646,131 4,377,762 3,862,183 5,457,918 3,458,095 611,389

Transfers out -3,318,086 -6,431,976 -5441395 -2,683,223 -2,500,121 -2,646,131 -4,377,762 -2,612,183 -5,457,918 -3,458,095 -611,389

Transfers from component units 42,658 7,272

Transfers to component units -390,161 -419,215 -447805 -453,000

Payment to escrow agent -3,089,344 -3,512,000 -3,220,000 0

Issuance of debt 2,735,344 8,710,700 2,830,000 3,220,000 0

Total Other Financing Sources (Uses) -708,743 -411,943 -447805 -453,000 5,198,700 2,830,000 0 1,250,000 0 0 0

Transfers in Residual Equity

Net Change in Fund Balances -1,312,210 -2,164,781 -3544630 -86,203 5,941,295 -1,197,170 2,195,100 1,093,507 -1,150,478 -1,238,811 -1,788,834

Fund Balances - Beginning of Year 11,320,060 10,007,850 7,843,069 4,346,508 4,260,305 10,201,600 10,462,858 12,657,958 13,751,465 12,600,987 11,362,176Cemetery Fund -Beginning 48,069Special Agency - Beginning 1,458,428Fund Balances - End of Year 10,007,850 7,843,069 4,346,508 4,260,305 10,201,600 10,462,858 12,657,958 13,751,465 12,600,987 11,362,176 9,573,342

Debt Service as a Percentage ofNoncapital Expenditures 18% 17% 16% 16% 11% 16% 16% 15% 16% 13% 17%

Year Ended June 30

110

City of Wixom, MichiganFund Balance - Governmental Funds - Last Ten Fiscal Years

Fiscal Reserved Reserved Reserved Unreserved Unreserved Unreserved Unreserved Unreserved TotalYear Ended General Other Fund General Special Debt Capital Fund Fund

June-30 Fund Funds Balance Fund Revenue Service Projects Balance Balance

2002 0 0 0 2,156,126 2,177,683 697,358 2,811,902 7,843,069 7,843,0692003 0 0 0 799,731 1,735,532 474,544 1,336,701 4,346,508 4,346,5082004 0 0 0 1,141,558 1,519,368 360,640 1,238,739 4,260,305 4,260,3052005 0 0 0 1,623,816 3,309,258 613,741 4,654,785 10,201,600 10,201,6002006 0 0 0 2,193,825 5,904,282 561,752 1,802,998 10,462,857 10,462,8572007 0 0 0 2,149,598 7,694,987 631,182 2,182,191 12,657,958 12,657,9582008 0 885,325 885,325 1,999,916 8,024,138 788,041 2,054,045 12,866,140 13,751,4652009 0 0 0 1,514,630 8,759,804 1,462,297 864,255 12,600,986 12,600,9862010 0 0 0 1,408,153 7,260,558 1,278,809 1,414,656 11,362,176 11,362,176

2011 0 0 0 3,281,850 4,159,474 605,302 1,526,716 9,573,342 9,573,342

8,000,0009,000,000

10,000,000

Fund Balance - Govenmental Funds (Last Ten Fiscal Years)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Reserved Fund Balance 0 0 0 0 0 0 885,325 0 0 0

Unreserved General Fund 2,156,126 799,731 1,141,558 1,623,816 2,193,825 2,149,598 1,999,916 1,514,630 1,408,153 3,281,850

Unreserved Spec Rev 2,177,683 1,735,532 1,519,368 3,309,258 5,904,282 7,694,987 8,024,138 8,759,804 7,260,558 4,159,474

Unreserved Debt Service 697,358 474,544 360,640 613,741 561,752 631,182 788,041 1,462,297 1,278,809 605,302

Unreserved Capital Projects 2,811,902 1,336,701 1,238,739 4,654,785 1,802,998 2,182,191 2,054,045 864,255 1,414,656 1,526,716

0

1,000,0002,000,000

3,000,000

4,000,0005,000,000

6,000,000

7,000,000

8,000,0009,000,000

Do

lla

rs

Fiscal Year

111

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Do

lla

rs

City of Wixom - Historical Revenues FY2002-FY2011 (10 Years)(See Fund Balance - Governmental Funds - Last Ten Fiscal Years

For Fund Balance History)

0

2,000,000

4,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Other revenue 155,154 810,959 295,845 2,051,853 269,995 1,327,478 292,660 372,479 309,048 392,301

Interest 373,942 176,279 165,606 375,350 631,715 945,429 593,184 125,124 269,722 73,782

Donations 9,772 31,396 64,745 141,938 289,547 263,915 202,113 192,561 23,594 5,686

Rental income 80,537 96,699 106,417 296,365 92,768 115,337 87,830 89,041 82,165 92,120

Licenses and Permits 437,161 327,717 374,315 558,003 1,078,095 877,523 567,726 704,684 420,420 621,072

Fines and forfeits 55,773 55,161 50,943 44,102 56,622 63,853 77,042 60,093 59,973 60,635

Charges for services 220,691 245,140 399,243 347,453 786,189 764,521 758,044 539,178 588,413 598,047

LDFA 0 0 0 0 380,246 836,256 270,391 695,549 358,740 245,487

County grants 142,161 49,480 211,902 22,023 0 0 0 37,982 0 73,293

State revenue 4,425,755 2,725,573 1,842,705 1,884,002 2,348,972 1,816,655 1,794,601 1,744,331 1,604,636 1,822,862

Federal grants 156,686 71,415 56,449 10,750 22,279 71,896 83,479 25,760 27,360 64,124

Solid waste 371,315 413,390 443,809 449,831 456,753 466,236 486,442 449,930 493,955 524,747

Property taxes 7,565,218 7,391,143 8,214,016 8,470,713 8,729,655 8,974,644 9,302,904 8,412,232 8,356,097 7,895,459

Years

112

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Do

lla

rs

City of Wixom - Historical Expenditures FY2002-FY2011 (10 Years)(See Fund Balance - Governmental Funds - Last Ten Fiscal Years

For Fund Balance History)

0

2,000,000

4,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Retiree Benefits 0 0 0 0 0 0 1,805,530 0 923,812 221,620

Capital Outlay 6,613,083 5,672,693 2,057,705 3,578,124 6,895,184 1,666,279 626,833 1,303,059 1,223,038 2,317,422

Debt Service 1,508,932 1,573,606 1,583,144 1,126,968 2,001,353 2,028,546 2,051,023 2,187,621 1,767,173 2,078,548

Public Works 978,684 1,136,383 1,128,077 1,238,868 1,615,273 1,762,484 1,903,766 1,912,523 1,603,057 1,603,860

Solid Waste 400,239 420,897 421,180 434,511 452,484 480,361 505,670 474,337 479,333 470,194

Library 411,943 447,805 453,000 0 21,394 23,181 0 0 0 0

Police 2,485,142 2,576,048 2,717,925 2,962,298 3,014,668 3,092,600 3,171,205 3,240,392 3,187,419 3,141,692

Fire 571,066 650,937 591,218 663,004 940,456 1,279,432 891,072 1,854,362 1,048,599 947,295

Boards & Commissions 113,320 107,620 99,574 82,904 118,762 101,554 123,208 100,366 89,037 78,159

Recreational 641,262 711,392 701,578 614,159 702,922 839,007 834,166 763,440 734,915 740,486

DPS & Building 711,802 775,953 658,439 699,368 1,255,448 990,796 820,701 720,921 744,964 699,158

General 1,723,473 1,865,648 1,900,358 2,509,584 2,152,062 2,064,403 1,939,735 2,042,401 2,031,587 1,960,015

Years

113

City of Wixom, MichiganWater-Enterprise Fund - Water Expenditures by Category - Last Ten Years

Account Type 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Depreciation 562,697$ 579,515$ 595,174$ 605,276$ 610,768$ 613,058$ 623,350$ 620,719$ 626,928$ 628,828$ DWSD Charges 363,815 1,238,109 1,358,007 1,492,675 1,701,576 1,700,316 1,379,708 1,168,813 1,165,199 1,372,514 Contract Operations 331,189 375,901 370,409 366,492 390,499 386,289 393,688 434,311 316,276 298,739

Bond Payment and Interest 428,146 439,844 425,089 406,337 384,378 361,942 338,579 314,756 290,132 264,918 Administrative Expenses 24,308 27,393 150,987 139,111 188,081 185,901 217,581 210,617 214,419 213,377

Utilities - - - - - - - - 14,817 17,229 Capital Outlay 11,754 - 12,145 - - - - - - - GIS 804 7,619 6,800 9,046 17,144 13,331 16,936 12,512 4,545 11,626 Operating Expenses 5,500 1,400 300 - - 15,781 - - -

Total $1,728,213 $2,669,781 $2,918,911 $3,018,937 $3,292,446 $3,260,837 $2,985,623 $2,761,728 $2,632,316 $2,807,231

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dol

lars

Fiscal Year

Water Expenditures by Category - Last Ten Years

Depreciation DWSD Charges Contract Operations Bond Payment and Interest Administrative Expenses Utilities Capital Outlay GIS Operating Expenses

114


Wastewater Enterprise Fund - Wastewater Expenditures by Category - Last Ten YearsAccount Type 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Contract Operations 688,759$ 862,584$ 761,880$ 833,409$ 798,942$ 778,241$ 810,089$ 834,905$ 642,170$ 613,893$ Depreciation 655,252 594,590 616,659 625,193 663,912 674,728 712,883 664,733 673,556 703,533 Bond Payment and Interest 200,925 177,797 154,233 130,237 75,662 50,575 22,306 - - -

Administrative Expenses 42,865 30,050 136,966 140,547 199,132 196,597 215,090 216,370 218,792 223,448 Utilities - - - - - - - - 184,720 222,718 Sludge Removal - - - - - - - - 161,865 185,853 Studies 243,456 68,875 - - - - 25,820 - 3,505 -

Televising and Cleaning 109,576 58,028 9,119 8,350 39,047 35,860 46,606 72,024 62,971 63,381 Capital Outlay 85,948 - 3,933 - - - - - - -

Transfer to Bdgt Stabilization - - - - - - 1,250,000 - - - GIS 804 7,636 6,800 9,252 17,144 13,331 16,936 12,512 4,500 14,075 Operating Expenses - - 5,541 5,500 5,500 5,500 18,303 18,774 111 -

Total $2,027,585 $1,799,560 $1,695,131 $1,752,488 $1,799,339 $1,754,832 $3,118,033 $1,819,319 $1,952,190 $2,026,901

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dol

lars

Fiscal Year

Wastewater Expenditures by Category - Last Ten Years

Contract Operations Depreciation Bond Payment and Interest Administrative Expenses Studies Televising and Cleaning

Capital Outlay GIS Operating Expenses Contribution Utilities Sludge Removal

115

City of Wixom, MichiganDDA Fund - Revenue and Expenditures by Category (Component Unit) - Last Ten Years

Account Category 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenues

Property Taxes $36,050 $639 $0 $20,393 $11,766 $13,280 $254,744 $281,020 $277,037 $230,782Contribution Other Funds - - - - - - - - Interest & Other 4,195 2,656 1,358 14,785 4,228 6,134 4,734 1,003 260 347 Private Contributions - - - - - - - - 2,000

Total Revenues $40,245 $3,295 $1,358 $35,178 $15,994 $19,414 $259,478 $282,024 $277,297 $233,129

Expenditures

Salary and Wages $208 $165 $152 $0 $0 $96 $149 $102 $122 $35Audit Fee 500 500 750 750 750 750 750 874 900 250 Capital Outlay 10,266 68,655 81,053 27,131 545 3,210 6,405 0 500 958Interfund Transfers - - - 3,000 237,706 242,575 245,135 228,947

Total Expenditures $10,974 $69,320 $81,955 $27,881 $1,295 $7,056 $245,010 $243,551 $246,657 $230,190

In Excess $29,271 ($66,025) ($80,597) $7,297 $14,699 $12,358 $14,468 $38,473 $30,640 $2,939

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Revenues $40,245 $3,295 $1,358 $35,178 $15,994 $19,414 $259,478 $282,024 $277,297 $233,129

Expenditures $10,974 $69,320 $81,955 $27,881 $1,295 $7,056 $245,010 $243,551 $246,657 $230,190

In Excess Rev(Exp) $29,271 ($66,025 ($80,597 $7,297 $14,699 $12,358 $14,468 $38,473 $30,640 $2,939

($100,000)

($50,000)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Dol

lars

Fiscal Years

DDA - Revenue and Expenditures Summary - Last Ten Years

Revenues

Expenditures

In Excess Rev(Exp)

116

City of Wixom, MichiganLibrary Fund - Revenue and Expenditures by Category (Component Unit) - Last Ten Years

Account Category 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Revenues

Contribution Other Funds 419,215$ 449,305$ 454,500$ 1,500$ 2,000$ 2,500$ 2,503$ -$ 2,609$ -$ Property Taxes - - - 721,677 745,305 752,311 1,002,434 933,445 876,781 780,852 Grants 9,815 14,665 19,105 15,018 12,938 12,593 12,659 12,182 9,998 32,711 State Revenue 11,808 20,559 20,350 19,010 17,725 20,746 19,986 19,027 17,736 33,197 Miscellaneous Revenue 14,449 15,664 16,239 15,814 13,507 13,539 18,345 29,224 28,617 28,972 Private Contributions 1,829 9,646 2,789 668 4,369 2,169 870 5,637 1,455 2,241 Interest 1,619 1,025 399 5,452 13,939 20,518 21,890 5,274 669 707 Total Revenue 458,735$ 510,864$ 513,382$ 779,139$ 809,783$ 824,376$ 1,078,687$ 1,004,789$ 937,865$ 878,680$ ExpendituresSalary and Wages 220,758$ 253,507$ 265,468$ 271,804$ 275,896$ 286,603$ 310,573$ 326,125$ 362,846$ 350,994$ Capital Outlay 61,160 61,426 54,710 51,179 78,452 80,416 225,163 259,864 173,133 126,902 Fringes Benefits 61,537 71,281 80,664 81,359 68,673 67,395 78,906 89,991 106,561 118,735 Professional & Contractual 40,049 48,269 47,515 45,926 48,879 47,108 56,426 58,985 50,630 65,134 Public Utilities and Telephone 37,940 44,323 40,015 47,714 44,653 40,120 46,404 48,123 40,762 43,078 Contribution Other Funds 7,272 5,200 18,152 11,898 21,394 53,048 29,867 31,934 34,178 34,960 Admin Fee/Rent - - - 202,280 190,243 178,693 170,119 168,456 64,680 64,747 Operating Expenses 9,900 8,372 8,022 8,469 33,275 32,108 19,941 25,281 19,703 22,174 Community Programming 4,451 4,693 3,696 4,236 6,322 5,533 8,605 8,787 9,964 8,706 Insurance Expense 4,489 5,000 4,924 4,920 6,500 9,323 11,840 12,564 13,011 13,230 Repair and Maintenance 3,856 3,149 5,253 5,157 12,364 12,909 27,528 26,211 17,707 14,759 Audit Fee 500 500 500 500 500 500 500 8,400 8,600 7,600 Total Expenditures 451,912$ 505,720$ 528,919$ 735,442$ 787,151$ 813,756$ 985,872$ 1,064,721$ 901,775$ 871,019$ In Excess 6,823$ 5,144$ (15,537)$ 43,697$ 22,632$ 10,620$ 92,815$ (59,932)$ 36,090$ 7,661$

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Revenues $458,735 $510,864 $513,382 $779,139 $809,783 $824,376 $1,078,687 $1,004,789 $937,865 $878,680

Expenditures $451,912 $505,720 $528,919 $735,442 $787,151 $813,756 $985,872 $1,064,721 $901,775 $871,019

In Excess Rev(Exp) $6,823 $5,144 $(15,537) $43,697 $22,632 $10,620 $92,815 $(59,932) $36,090 $7,661

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Dol

lars

Fiscal Years

Library Revenue and Expenditures Summary - Last Ten Years

Revenues

Expenditures

In Excess Rev(Exp)

117

City of Wixom, MichiganTaxable Property Values - Last Ten Fiscal Years

Fiscal EstimatedYear

EndedTotal Tax Rate Actual

June-30 Residential Commerical Industrial Agricultural IFT Personal Value (Mills) Value2002 278,567,930 97,230,850 239,240,520 50,440 96,573,790 189,656,590 853,033,225 11.4564 1,706,066,4502003 307,185,840 101,316,150 273,495,180 50,440 73,732,890 193,004,260 911,918,315 10.6883 1,823,836,6302004 331,944,570 105,935,460 290,654,370 53,320 49,057,130 207,421,690 960,537,975 11.1433 1,921,075,9502005 350,464,480 108,358,090 305,997,020 53,320 42,861,970 201,856,700 988,160,595 11.7923 1,976,321,1902006 364,697,010 113,699,520 317,625,880 53,330 38,341,110 199,486,130 1,014,732,425 11.6363 2,029,464,8502007 385,983,820 118,381,860 324,047,940 - 36,526,010 184,548,160 1,031,224,785 11.5214 2,062,449,5702008 350,278,240 109,630,940 284,123,130 - 30,527,070 181,941,220 941,237,065 10.6564 1,882,474,1302009 343,197,870 111,470,710 292,665,630 - 14,044,580 131,475,540 885,832,040 10.5514 1,771,664,0802010 319,371,750 113,063,050 291,624,440 - 11,038,460 129,872,580 859,451,050 10.5514 1,718,902,1002011 272,833,620 105,103,550 248,762,000 - 14,123,000 119,455,870 753,216,540 11.6623 1,506,433,080

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Personal 189,656,590 193,004,260 207,421,690 201,856,700 199,486,130 184,548,160 181,941,220 131,475,540 129,872,580 119,455,870

IFT 96,573,790 73,732,890 49,057,130 42,861,970 38,341,110 36,526,010 30,527,070 14,044,580 11,038,460 14,123,000

Agricultural 50,440 50,440 53,320 53,320 53,330 - - - - -

Industrial 239,240,520 273,495,180 290,654,370 305,997,020 317,625,880 324,047,940 284,123,130 292,665,630 291,624,440 248,762,000

Commerical 97,230,850 101,316,150 105,935,460 108,358,090 113,699,520 118,381,860 109,630,940 111,470,710 113,063,050 105,103,550

Residential 278,567,930 307,185,840 331,944,570 350,464,480 364,697,010 385,983,820 350,278,240 343,197,870 319,371,750 272,833,620

Dol

lars

Fiscal Year

Property Tax Levy and Collections (Last Ten Years)

118

City of Wixom, MichiganProperty Tax Rates - Direct Millage (Per $1,000 of Assessed Value. Last Ten Years)

9.8000

10.0000

10.2000

10.4000

10.6000

10.8000

11.0000

11.2000

11.4000

11.6000

11.8000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Millage 11.4564 10.6883 11.1433 11.7923 11.6363 11.5214 10.6564 10.5514 10.8514 11.6623

11.4564

10.6883

11.1433

11.7923

11.636311.5214

10.656410.5514

10.8514

11.6623

Mill

age

Fiscal Year

City Property Tax Rates - Direct Millage (Per $1,000 of Assessed Value. Last Ten Years)

119

City of Wixom, MichiganProperty Tax Rates - Direct Millage (Per $1,000 of Assessed Value. Last Ten Years)

Year Ended

June-30General

OperatingCivic

CenterDPW / Fire

Bldg Local RoadMajor Road

Safety Path

Water Utility System Library Total

Headlee Limit

Headlee Limit over

Millage2002 6.3469 0.8500 0.3255 1.1314 0.9074 0.2952 1.6000 11.4564 7.5649 1.21802003 6.3469 0.5800 0.2700 1.1314 0.7900 1.5700 10.6883 7.5452 1.19832004 6.8469 0.6200 0.2700 1.1314 0.8200 1.4550 11.1433 7.5429 0.69602005 6.8469 0.4040 0.2700 1.1314 0.8200 1.4550 0.8650 11.7923 7.5429 0.69602006 6.8469 0.3600 0.2798 1.1314 0.8200 1.3332 0.8650 11.6363 7.5429 0.69602007 6.7320 0.3600 0.2798 1.1314 0.9200 1.2332 0.8650 11.5214 7.5429 0.81092008 6.7320 0.3600 0.2800 1.1314 0.9400 1.2130 0.0000 10.6564 7.5429 0.81092009 6.7320 0.2150 0.3200 1.1314 0.9400 1.2130 0.0000 10.5514 7.5429 0.81092010 6.7320 0.0000 0.3440 1.1314 1.0420 0.3000 1.3020 0.0000 10.8514 7.5429 0.81092011 7.5429 0.0000 0.3700 1.1314 1.0870 0.3000 1.2310 0.0000 11.6623 7.5429 0.0000

0.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

age

Fiscal Year

City Property Tax Rates - Direct Millage (Per $1,000 of Assessed Value. Last Ten Years)

Library Water Safety Path Major Roads Local Roads DPW/Fire Bldg Civic Center General

120

City of Wixom, MichiganProperty Tax Rates - Overlapping Government (Per $1,000 of Assessed Value. Last Ten Years )

2002 7.9538 23.1000 8.0000 26.0000 12.1574 25.60002003 7.4728 22.9884 8.0000 26.0000 11.6782 25.34532004 7.5248 23.1000 8.0000 26.0000 11.3460 25.30492005 7.0548 22.7900 8.5000 26.5000 12.0034 26.20342006 6.8975 22.7900 8.5000 26.5000 11.7194 26.15322007 6.7841 22.7900 8.5000 26.5000 10.6182 25.67322008 6.6700 22.7900 8.5000 26.5000 10.0182 25.13322009 6.5722 22.7900 8.5000 26.5000 9.9724 25.33322010 6.4793 22.5000 8.5000 26.5000 10.3800 25.73322011 6.7508 22.5000 10.5000 28.5000 11.4931 26.3632

Novi Schools Homestead

Novi Schools Nonhomestead

Year Ended June-30

Walled Lake Schools Homestead

Walled Lake Schools Nonhomestead

South Lyon Schools Homestead

South Lyon Schools Nonhomestead

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

age

Fiscal Year

School Property Tax Rates - Overlapping Government Millage (Per $1,000 of Assessed Value. Last Ten Years)

WLS Homestead WLS Nonhomestead SL Homestead SL Nonhomestead Novi Homestead Novi Nonhomestead

121

City of Wixom, MichiganProperty Tax Rates - Overlapping Government (Per $1,000 of Assessed Value. Last Ten Fiscal Years - Continued)

Fiscal Oakland Oakland PA 164Year Ended Oakland Community Intermediate Sec. 10a State

June-30 County College Schools Library Education2002 4.6438 1.5952 3.4526 0.0000 6.00002003 4.6523 1.6090 3.4224 0.0000 6.00002004 4.6497 1.5983 3.3991 0.0000 5.00002005 4.6476 1.5889 3.3789 0.0000 6.00002006 4.6461 1.5844 3.3690 0.0000 6.00002007 4.6461 1.5844 3.3690 0.0000 6.00002008 4.6461 1.5844 3.3690 1.0800 6.00002009 4.7461 1.5844 3.3690 1.0800 6.00002010 4.7461 1.5844 3.3690 1.0800 6.00002011 4.7461 1.5844 3.3690 1.0800 6.0000

(I) The State passed legislation on April 30, 2002 to require the levying of the State Education Tax (SET) on subsequent summer tax bills only. A one-time reduction from 6 mills to 5 mills was offered during the 2003 tax year to assist taxpayers with the transition to the new collection cycle. The citizens voted on November 7, 2006 to allow the Library to levy a separate millage of 1.08 mills for operations and capital needs for the period of 10 years. The Library will be governed under Michigan Public Act 164, Section 10a.

0.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

14.0000

16.0000

18.0000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

age

Fiscal Year

Other Property Tax Rates-Overlapping Government (Per $1,000 of Assessed Value. Last Ten Years)

Library State Intermediate Schools College County

122


List of Principal Taxpayers - June 30, 2011

2010 Taxable Value 2010 Taxable Value Taxable Value 2001 Taxable Value 2001 Taxable Value Percentage 2001

Taxpayer Ad Valorem IFT Percent Ad Valorem IFT of Total Rank

Ford Motor Company 13,667,670 289,240 1.85% 186,597,870 83,256,600 31.63% 1

Edward Rose & Sons 12,391,790 1.65% 33,347,410 3.91% 2

Occidental Development Ltd 9,099,790 1.21% 0 0.00% Below Top 10

Container, Dart 8,660,230 1.15% 11,666,300 1.37% 4

ITC Transmission 7,982,100 1.06% 0 0.00% Below Top 10

Detroit Edison Company 7,948,690 1.06% 10,970,990 1.29% 5

Beck Business Center Inc 7,647,770 1.02% 0 0.00% Below Top 10

Lakeside Oakland Dev LLC 7,621,260 1.01% 13,037,800 1.53% 3

General Motors 6,781,700 0.90% 0 0.00% Below Top 10

Meijer Inc. 6,045,750 0.80% 7,049,640 0.83% 10

U S Real Property, LLC 4,951,590 0.66% 0 0.00% Below Top 10

Wixkix Properties LLC 4,782,060 0.63% 3,182,440 0.37% Below Top 10

Mac Valves Inc 4,548,160 0.60% 6,311,090 0.74% Below Top 10

Sabic Innovative Plastics 4,438,810 0.59% 0 0.00% Below Top 10

Wixom Grand River Assoc 3,844,000 0.51% 6,833,610 0.80% Below Top 10

Occidental Development 3,662,180 0.49% 0 0.00% Below Top 10

Property Asset Management Inc 3,596,210 0.48% 0 0.00% Below Top 10

Walter Toebe Construction 2,991,840 0.40% 6,307,300 0.74% Below Top 10

International - Wixom, Llc 2,668,530 0.35% 5,483,290 0.64% Below Top 10

Wix Property, LLC 2,662,910 0.35% 3,182,440 0.37% Below Top 10

Total List of Major Taxpayers 125,993,040 289,240 16.77% 293,970,180 83,256,600 44.2%

Total Taxable Value 753,216,540 853,033,225

Percent by Tax Category 16.75% 39.34%

Top 10 Taxpayers Valuation in 2001 was $299,459,180 or 36.23% of $826.613,420 total valuation. This compares with 11.70% for FY 2011.

The decline in this percent is a natural consequence of the growth in industrial construction over the 10 year period.

123

City of Wixom, MichiganProperty Tax Levy and Collections - Last Ten Fiscal Years

PercentFiscal Total Current Percent of Total

Year Ended Tax Collections of Levy Delinquent Total Tax CollectionsJune-30 Levy to March 1 Collected Collections Collections to Tax Levy

2002 8,517,172 8,291,732 97.35% 146,673 8,438,405 99.08%2003 8,460,467 8,218,277 97.14% 113,061 8,331,338 98.47%2004 9,271,867 9,022,925 97.32% 115,335 9,138,260 98.56%2005 9,877,265 9,637,926 97.58% 130,219 9,768,145 98.90%2006 10,126,397 9,777,970 96.56% 223,682 10,001,652 98.77%2007 10,217,362 9,947,133 97.36% 205,384 10,152,517 99.37%2008 10,941,562 10,644,479 97.28% 230,283 10,874,762 99.39%2009 10,156,335 9,615,926 94.68% 435,201 10,051,127 98.96%2010 10,117,491 9,541,162 94.30% 446,466 9,987,628 98.72%2011 9,441,776 9,037,730 95.72% 355,926 9,393,656 99.49%

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Collected 8,438,405 8,331,338 9,138,260 9,768,145 10,001,652 10,152,517 10,874,762 10,051,127 9,987,628 9,393,656

Delinquent 146,673 113,061 115,335 130,219 223,682 205,384 230,283 435,201 446,466 355,926

Tax Collections March 1 8,291,732 8,218,277 9,022,925 9,637,926 9,777,970 9,947,133 10,644,479 9,615,926 9,541,162 9,037,730

Dol

lars

Fiscal Year

Property Tax Levy and Collections (Last Ten Years)

Collected Delinquent Tax Collections March 1

124

City of Wixom, MichiganProperty Tax Levies - Last Ten Years

Fiscal PA 164 IntermediateYear Ended State School City County Community Sec. 10a School

June-30 Education Tax (I) Tax Tax College Library District Total

2002 5,118,199 14,129,065 9,772,690 3,961,316 1,360,759 - 2,945,183 37,287,211 2003 5,471,510 14,551,499 9,746,857 4,242,518 1,467,277 - 3,120,949 38,600,609 2004 4,802,690 15,114,912 10,703,563 4,466,213 1,535,228 - 3,264,965 39,887,571 2005 5,928,964 14,810,063 11,652,686 4,592,575 1,570,088 - 3,338,896 41,893,272 2006 6,088,395 15,638,425 11,807,731 4,714,548 1,607,742 - 3,418,634 43,275,474 2007 6,187,349 15,863,314 11,881,153 4,791,173 1,633,873 - 3,474,196 43,831,058 2008 5,647,422 16,266,091 10,030,199 4,373,082 1,491,296 1,016,536 3,171,028 41,995,653 2009 5,314,992 13,385,872 9,346,768 4,204,247 1,403,512 956,699 2,984,368 37,596,458 2010 5,156,706 13,083,385 9,326,247 4,079,041 1,361,714 928,207 2,895,491 36,830,791 2011 4,519,299 11,724,666 8,784,237 3,574,841 1,193,396 813,474 2,537,587 33,147,500

(I) Includes the Novi, South Lyon, and Walled Lake School Districts

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dol

lars

Fiscal Year

Property Tax Levies - Last Ten Years

Library Intermdiate College County City School State

125

City of Wixom, MichiganRatio of Outstanding Debt by Type to Assessed Value and Per Capita - Last Ten Years

2001-02 2002-03 2003-04 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011Governmental activities

General obligation bonds $12,895,000 $11,935,000 $10,910,000 $9,820,000 $8,635,000 $7,415,000 $6,120,000 $4,745,000 $3,785,000 $2,720,000

General obligation bonds-Development 0 0 0 5,750,000 5,750,000 5,750,000 5,750,000 5,660,000 5,560,000 5,400,000Special assessment bonds 0 0 0 0 2,755,000 2,655,000 2,555,000 2,455,000 2,330,000 1,930,000

Total 12,895,000 11,935,000 10,910,000 15,570,000 17,140,000 15,820,000 14,425,000 12,860,000 11,675,000 10,050,000

Business-type ActivitiesGeneral obligation bonds $17,115,084 $16,375,866 $15,581,829 $14,782,973 $13,959,297 $13,110,621 $12,237,126 $11,343,812 $10,430,678 $9,492,725Revenue Bonds 2,885,000 2,450,000 2,015,000 1,580,000 1,145,000 710,000 0 0 0 0

Total 20,000,084 18,825,866 17,596,829 16,362,973 15,104,297 13,820,621 12,237,126 11,343,812 10,430,678 9,492,725

Total debt of the government $32,895,084 $30,760,866 $28,506,829 $31,932,973 $32,244,297 $29,640,621 $26,662,126 $24,203,812 $22,105,678 $19,542,725

Total taxable value 853,033,225 911,918,315 960,537,975 988,160,595 1,014,732,425 1,031,224,785 941,237,065 885,832,040 859,451,050 753,216,540

Ratio of total debt to taxable value 3.86% 3.37% 2.97% 3.23% 3.18% 2.87% 2.83% 2.73% 2.57% 2.59%

Total population 13,263 13,292 13,321 13,350 13,379 13,408 13,437 13,466 13,498 13,498

Total debt per capita $2,480 $2,314 $2,140 $2,392 $2,410 $2,211 $1,984 $1,797 $1,638 $1,448

126

City of Wixom, MichiganRatio of General Obligation Bonded Debt Outstanding to Assessed Value and Debt per Capita - Last Ten Years

Other Ratio General

Fiscal General General Debt to Obligation

Year Ended Obligation DebtObligation Debt-

DevTaxable Estimated Assessed Debt per

June-30 Outstanding Outstanding Total Value Population Value Capita2001-02 12,895,000 0 12,895,000 853,033,225 13,263 1.51% 972 2002-03 11,935,000 0 11,935,000 911,918,315 13,292 1.31% 898 2003-04 10,910,000 0 10,910,000 960,537,975 13,321 1.14% 819 2004-05 9,820,000 5,750,000 15,570,000 988,160,595 13,350 1.58% 1,166 2005-06 8,635,000 5,750,000 14,385,000 1,014,732,425 13,379 1.42% 1,075 2006-07 5,490,000 5,750,000 11,240,000 1,031,224,785 13,408 1.09% 838 2007-08 4,375,000 5,750,000 10,125,000 941,237,065 13,437 1.08% 754 2008-09 3,200,000 5,660,000 10,405,000 885,832,040 13,466 1.17% 718 2009-10 3,785,000 5,560,000 9,345,000 859,451,050 13,498 1.09% 692 2010-11 2,720,000 5,400,000 8,120,000 753,216,540 13,498 1.08% 602

127

City of Wixom, MichiganRatio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures Last Ten Fiscal Years

Fiscal Year Ended June 30 (I) Principal Interest Total

Total General Governmental Expenditures

Ratio of Debt Service to General

Expenditures (Percent)

Total General Governmental

Noncapital Expenditures

Ratio of Debt Service to NonCapital

General Expenditures (Percent)

2002 860,000 646,757 1,506,757 16,158,946 9.32% 9,545,863 15.78%2003 960,000 611,931 1,571,931 15,938,982 9.86% 10,266,289 15.31%2004 1,025,000 557,219 1,582,219 12,312,198 12.85% 10,254,493 15.43%2005 715,000 410,718 1,125,718 13,909,788 8.09% 10,331,664 10.90%2006 1,260,000 739,802 1,999,802 19,170,006 10.43% 12,274,822 16.29%2007 1,320,000 706,858 2,026,858 14,328,643 14.15% 12,662,364 16.01%2008 1,395,000 654,448 2,049,448 14,672,909 13.97% 14,046,076 14.59%2009 1,565,000 598,184 2,163,184 14,599,422 14.82% 13,296,363 16.27%2010 1,205,000 414,645 1,619,645 13,832,934 11.71% 12,609,896 12.84%2011 1,625,000 416,775 2,041,775 14,346,615 14.23% 12,029,193 16.97%

(I) General obligation bonds reported in the Enterprise Fund and the Component Units with government commitment have been excluded.

Debt Service Requirements

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Principal 860,000 960,000 1,025,000 715,000 1,260,000 1,320,000 1,395,000 1,565,000 1,205,000 1,625,000

Interest 646,757 611,931 557,219 410,718 739,802 706,858 654,448 598,184 414,645 416,775

Dol

lars

Fiscal Year

Ratio of Annual Debt Service Expenditures for General Bonded Debt to total General Government Expenditures

Principal Interest

128

City of Wixom, MichiganComputation of Legal Debt Margin Year Ended June 30, 2011

As of 6/30/2011Amount

699,486,210$ Equivalent IFT Value - 2010 7,699,005 Total Valuation 707,185,215$

70,718,522$

Total direct debt 17,612,725$ Less:

Revenue bonds - Wastewater - Total amount of debt applicable to limit 17,612,725$ Legal Debt Margin 53,105,797$ Legal Debt Margin-Percent 75.09%

Net Direct Debt 17,612,725$ Indirect Debt 10/01/05 SAD Tribute Drain 1,930,000$ Net Direct and Indirect Debt 19,542,725$

Overlapping Debt Percent Municipality Outstanding City's Share0.14% Novi S/D 110,305,000$ 154,427$ 2.80% South Lyon S/D 176,545,000 4,943,26014.96% Walled Lake S/D 140,345,000 20,995,6121.34% Oakland County 97,306,733 1,303,9101.34% Oakland ISD 62,379,412 835,8841.35% Oakland CC 5,075,000 68,513Net Overlapping Debt 28,301,606$ Net Direct, Indirect and Overlapping debt 47,844,331$

Annual Disclosure Documents prepared by Stauder, Barch and Associates are included at end of Financial Statements

Debt Limit State Equalized Valuation - 2010

Debt limit (10 percent of State Equalized Valuation & Equivalent IFT Value)

Debt Applicable to Debt Limit

129

City of Wixom, MichiganLegal Debt Margin Information - Last Ten Years

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Calculation of Debt LimitState equalized valuation $875,051,870 $936,009,410 $936,009,410 $966,729,610 $1,012,961,780 $1,010,942,088 937,261,010$ 888,942,310$ 764,469,210$ 699,486,210$ Assessed value equivalent of Act 198 Exemptions 36,695,525 24,345,095 36,695,525 19,906,370 18,172,555 18,251,157 7,022,290 5,519,230 7,061,500 7,699,005$

Debt Limit (10% of SEV) 91,174,740 96,035,451 97,270,494 98,663,598 103,113,434 102,919,324 94,428,330 89,446,154 77,153,071 70,718,522

Calculation of Debt Subject to LimitTotal Debt $32,895,084 $30,760,866 $28,506,829 $31,932,973 $32,244,297 $29,640,621 $26,662,126 $24,203,812 $22,105,678 $19,542,725Less: Special assessment bonds 0 0 0 0 2,755,000 2,655,000 2,555,000 2,455,000 2,330,000 1,930,000 Revenue bonds 2,885,000 2,450,000 2,015,000 1,580,000 1,145,000 710,000 0 0 0 0

Net Debt Subject to Limit $30,010,084 $28,310,866 $26,491,829 $30,352,973 $28,344,297 $26,275,621 $24,107,126 $21,748,812 $19,775,678 $17,612,725

Legal Debt Margin 853,033,225 911,918,315 960,537,975 988,160,595 1,014,732,425 1,031,224,785 941,237,065 885,832,040 859,451,050 753,216,540

Net Debt Subject to Limit as Percent of Debt Limit 32.91% 29.48% 27.24% 30.76% 27.49% 25.53% 25.53% 24.31% 25.63% 24.91%

130


Principal Employers - June 30, 2011

Current PercentageEmployer Employees of Total

Moeller Manufacturing Company, Inc. 265 4.15%NLB Corporation 160 2.51%United Parcel Service, Inc 105 1.65%Mac Valves Inc 100 1.57%Gary's Catering Inc 100 1.57%General RV Center 100 1.57%Detroit Public TV 95 1.49%Eagle Industries Inc 95 1.49%AFC-Holcroft LLC 90 1.41%Jatco USA Inc 88 1.38%GM Performance Build Center 80 1.25%K Tool Corporation 75 1.18%Great Lakes Rubber Co, Inc. 75 1.18%Diversified Machine Inc 75 1.18%Trijicon Inc 70 1.10%Acromag Inc 60 0.94%McDonalds Restaurant 60 0.94%Trugreen 60 0.94%Rockwell Medical Technologies Inc 60 0.94%Burger King 53 0.83%

Total List of Major Taxpayers 1,866 29%Estimated Total Employees 6,380

June 30, 2002 employer data is not available at this time.

131

City of Wixom, MichiganFull-time government employees

Function/ program 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

General government:

City Manager 4 4 4 4 4 4 4 4 4 4

Assessor 1 1 1 1 1 1 1 1 1 1

Clerks 3 3 3 3 3 3 2 2 2 2

Finance 4 5 5 4 4 4 4 4 4 4

Public safety:

Police 27 27 27 27 25 25 25 25 24 23

Fire 3 3 3 2 2 2 2 2 2 2

Building 5 5 5 5 5 4 4 4 4 4

Public works:DPS 2 2 2 1 0 0 0 0 0 0Public Works 10 11 11 11 12 12 11 11 11 11

Community Serv 4 4 4 4 4 4 4 4 4 4Total 63 65 65 62 60 59 57 57 56 55

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Em

ploy

ees

Fiscal Year

City of Wixom - Full-time employee

Community Serv Public Works DPS Building Fire Police Finance Clerks Assessor City Manager

132

City of Wixom, MichiganDemographic Statistics - Last Ten Years

Median StateYear Ended Estimated Number of Household UnemploymentDecember-31 Population Households Income Rate

2002 13,263 (e) 6,011 (e) 47,019 3.92003 13,292 (e) 6,081 (e) 48,430 4.32004 13,321 (e) 6,151 (e) 49,883 7.2

2005 13,350 (e) 6,221 (e) 51,379 6.1

2006 13,379 (e) 6,291 (e) 58,245 7.1

2007 13,408 (e) 6,361 (e) 58,079 7.5

2008 13,437 (e) 6,431 (e) 53,714 8.5

2009 13,466 (e) 6,501 (e) 53,714 9.4

2010 13,498 (e) 6,577 (e) 53,125 13.2

2011 13,498 Census 6,577 53,125 10.5

2035 16,456 (e) 7,598 (e) N/A N/A

See Community Profile for more Demographic Information/Statistics

N/A = Not available Sources: Southeast Michigan Council of Governments U.S. Bureau of Labor Statistics Michigan.gov Labor Market Information and Internal Records

133


Operating Indicators by Function/Program - Last Ten Fiscal Years

Function/Program 2001-02 2002-03 2003-04 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Election data:

Registered voters 7,833 7,772 7,665 8,102 8,549 8,472 8,930 8,930 8,787 8,822

Voters (at the polls and absentee) 1,604 3,688 502 6,114 1,667 4,829 6,700 6,700 1,149 4,034

Percent voting 20.48% 47.45% 6.55% 75.46% 19.50% 57.00% 75.03% 75.03% 13.08% 45.73%

Building data:

Permits issued-Residential 276 205 288 313 361 202 147 96 155 166

Residential Permit Revenue 85,458 51,056 68,502 194,189 96,993 34,273 25,270 19,610 40,397 36,333

Residential Estimated Value 18,855,134 11,852,466 7,063,204 10,533,283 11,268,031 3,026,260 2,172,466 777,010 2,157,552 1,664,037

Pemits issued-Comm & Indust 97 79 106 118 120 146 116 66 60 53

Comm & Indust Permit Revenue 141,511 114,268 125,795 239,490 193,841 165,530 125,832 138,739 44,931 59,522

Comm & Indust Estimated Value 19,783,125 17,731,213 19,816,837 32,947,775 20,596,914 17,402,587 12,516,419 12,827,878 2,628,865 5,808,086

Police data:

Crime Part A 935 839 817 915 855 926 885 744 798 846

Crime Part B 679 575 611 748 642 641 615 579 507 453

Crime Part C 14,586 13,759 13,670 13,315 14,907 14,854 13,416 14,729 16,086 15,045

Crime Part D 2,266 2,324 2,578 2,181 1,823 2,314 1,673 2,364 1,985 2,098

Other calls for service 1,245 1,097 792 741 643 35 78 98 67 182

Total police runs 19,711 18,594 18,468 17,900 18,870 18,770 16,667 18,514 19,443 18,624

Physical arrests 616 731 739 747 610 639 595 562 478 509

Traffic violations 1,936 2,507 2,061 2,114 1,545 1,287 1,195 1,424 1,083 1,005

Investigations: Warrants obtained 193 204 224 385 425 333 284 313 270 255

Fire data:

Fire runs 73 60 69 48 59 49 33 23 56 60

Emergency medical runs 644 589 620 621 688 559 550 529 603 622

Other calls for service 324 368 397 288 350

Inspections 1,194 1,195 1,110 1,175 1,189 1,177 1,071 1,106 1,340 1,485

Public works data:

Miles of street resurfaced (Major) 8 10 10 10 10 10 10 10 10 10

Miles of street resurfaced (Local) 35 34 34 34 34 34 34 36 36 36

Refuse collected (tons) 3,323 3,688 3,637 3,499 3,320 3,770 2,841 2,536 2,492 2,435Library data:

Circulation (books borrowed) 107,880 124,188 111,358 110,363 113,063 131,465 155,269 191,849 215,048 217,340

Collection volume 39,175 40,158 40,185 41,757 46,587 48,395 51,641 56,261 60,800 68,180

Water and Sewer data:

Water purchase from Detroit-MCF 35,598 121,144 107,183 110,426 108,037 109,353 86,093 80,810 76,910 76,266

Water purchase from Detroit-Cost 363,815 1,238,109 1,358,007 1,492,675 1,701,576 1,700,316 1,379,708 1,168,813 1,165,198 1,372,514

Rates

Water 10.30 17.56 20.38 23.72 27.57 27.57 27.57 27.57 25.45 23.45

Sewer 9.76 4.85 5.00 7.00 9.00 9.00 9.00 9.00 11.12 13.12

DWSD Wholesale Rate 10.22 10.22 12.67 13.55 15.75 15.54 15.90 13.85 15.15 17.05

134

City of Wixom, MichiganCapital Asset Statistics by Function/Program - Last Ten Fiscal Years

Function/Program 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Police - Stations 1 1 1 1 1 1 1 1 1 1

Fire - Stations 2 2 2 2 2 2 2 2 2 2

Wastewater Treatment Plant 1 1 1 1 1 1 1 1 1 1

Connection to Detroit Water System1 1 1 1 1 1 1 1 1 1

Major Roads in Miles 8 10 10 10 10 10 10 10 10 10

Local Roads in Miles 35 34 34 34 34 34 34 34 34 34

Parks & recreation - Acres 382 382 382 382 392 392 392 392 392 392

Parks & recreation - Locations 5 5 5 5 6 6 6 6 6 6

Library branches 1 1 1 1 1 1 1 1 1 1

135

Public School Enrollment

Population and Household GrowthPopulation by Age

Local Government

2009 Tax Rates

5 to 17

Under 5

18 to 3435 to 64

65 and older

Wixom

Source: SEMCOG

Does not include public school academies

Educational Attainment of People Over 25 Years of Age

College Grad US

Less than High School

High School Graduate

4-year College or Higher

One to three years College

A community you can LIVE in!

Source: U.S. Census Bureau

0

5,000

10,000

15,000

20,000

2005 2010 2015 2020 2025 2030 2035

Population Households

Private Schools

Colleges and Universities

College Grad Michigan

0% 10% 20% 30% 40%

Little Hornbook Day School, Wixom Christian School

Wixom is presently the third fastest growing city in Oakland County, located in the midst of the rapidly growing I-96 corridor and within easy driving distance of three major internationally known universities. The city is characterized by its balanced approach to land use development and mixing the best of country living with a strong industrial base. All types of residential housing are available with a significant concentration of multiple family. Wixom maintains the best of country living within the urban fringe, having the second lowest tax rate in Oakland County because of its strong industrial base - not to mention one of the finest school districts in the State. The Wixom Historical Society maintains a museum at the Wixom-Wire house of the City's historic past. Wixom Habitat is a 300-acre nature preserve obtained through land acquisition purchases by the City and the donations of developers. It is being developed as a passive park with boardwalks, nature center, and walking paths.

HomesteadNon HomesteadSchool District

Novi $38.01 $53.36South Lyon $36.13 $54.13Walled Lake $34.11 $50.13

None

School District Year Enrollment

Novi 2008 - 2009 6,221

South Lyon 2008 - 2009 7,072

Walled Lake 2008 - 2009 15,779

Kevin HinkleyMayor

(248) 624-4557

J. Michael DornanManager

(248) 624-0894

Linda KirbyClerk

(248) 624-4557

www.cityofwixom.com/

137

Market Research Services Oakland County Planning and Economic Development2100 Pontiac Lake Road, 41W, Waterford Michigan 48328 -- www.oakgov.com

Top Employers

$58,245$58,079

$48,996

$15,000

$25,000

$35,000

$45,000

$55,000

$65,000

2006 2007 2008

Source: SEMCOG

Manufactured Housing

Housing Sales

Realcomp (2010 through April only)

Median Household Income

Source: Claritas

Wixom

Year # of Parks # of Units

2003 0 0

2005 0 0

2007 0 0

Rank Company Name Industry

1 Great Lakes Rubber Co. Fabricated rubber products

2 Mac Valves Inc. Fluid power valves and hose fittings

3 Nlb Leasing LLC Equipment rental and leasing

4 Rockwell Medical Technologies, Inc. Surgical and medical instruments

5 Trijicon Inc. Optical instruments and lenses

6 NGK Spark Plugs USA Motor vehicle parts and accessories

7 H2H Solutions, Inc. Home health care services

8 Walled Lake School District Primary education

9 Diversified Machine Inc. Motor vehicle parts and accessories

10 J&B Medical Supply Co., Inc. Medical and hospital equipment

11 United Parcel Service, Inc. Courier services

2010 Median Sales $ $130,500

2010 # of Sales 39

2010 Avg DOM 163

2009 # of Sales 318

2009 Median Sale $ $147,000

2009 Avg DOM 132

2008 # of Sales 90

2008 Median Sale $ $160,000

2008 Avg DOM 162

138

Community Profiles

City of Wixom

49045 Pontiac TrlWixom, MI 48393-2567 Census 2010 Population: 13,498

Area: 9.5 square mileshttp://www.ci.wixom.mi.us/

Population Forecast

Note for Wixom: Incorporated as of the 1960 Census from part of Commerce and Novi Townships. Source: U.S. Census Bureau and SEMCOG 2035 Forecast produced in 2007-08. - Move cursor over chart to view population numbers

Population and HouseholdsCensus

2000Census

2010Change

2000-2010Pct Change2000-2010

SEMCOGJul 2011

Total Population 13,263 13,498 235 1.8% 13,605 Group Quarters Population 56 5 -51 -91.1% 5 Household Population 13,207 13,493 286 2.2% 13,600Housing Units 6,086 6,577 491 8.1% 6,577Households (Occupied Units) 5,889 5,725 -164 -2.8% 5,735Residential Vacancy Rate 3.2% 13.0% 9.7% - 12.8%Average Household Size 2.24 2.36 0.11 - 2.37

Annual Average

Components of Population ChangeCensus

1990-1999SEMCOG

2000-2009

Natural Increase (Births - Deaths) 182 187 Births 241 254 Deaths 59 67Net Migration (Movement In - Movement Out) 290 -102

Population Change (Natural Increase + Net Migration) 471 85

Source: Michigan Department of Community HealthVital Statistics, U.S. Census Bureau, and SEMCOG.

Map Census 2010: Population | Youth Population

139

http://www.ci.wixom.mi.us/

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Demographics

Household Types

Census 2010

SEMCOG 2035

Household TypesCensus

2000Census

2010Pct Change2000-2010

SEMCOG2035

Pct Change2010-2035

With seniors 65+ 522 714 36.8% 3,147 340.8%Without seniors 5,367 5,011 -6.6% 4,451 -11.2%

Two or more persons without children 1,790 1,843 3.0% 3,029 64.4%Live alone, 65+ 241 303 25.7% 1,517 400.7%Live alone, under 65 1,962 1,654 -15.7% 1,278 -22.7%With children 1,896 1,925 1.5% 1,774 -7.8%

Total Households 5,889 5,725 -2.8% 7,598 32.7%

Population Change by Age, 2000-2010 Age Group

Census2000

Census2010

Change2000-2010

85+ 73 105 32

80-84 113 122 9

75-79 145 150 5

70-74 180 216 36

65-69 210 352 142

60-64 272 524 252

55-59 400 878 478

50-54 569 1,019 450

45-49 949 1,144 195

40-44 1,086 1,109 23

35-39 1,365 1,079 -286

30-34 1,343 1,021 -322

25-29 1,396 1,090 -306

20-24 1,455 965 -490

15-19 860 831 -29

10-14 802 1,001 199

5-9 915 971 56

Under 5 1,130 921 -209

13,263 13,498 235

140









Forcasted Population by Age, 2010-2035 Age Group

Census2010

SEMCOG2035

Change2010-2035

65+ 945 4,556 3,611

35-64 5,753 5,328 -425

18-34 3,377 3,219 -158

5-17 2,502 2,408 -94

Under 5 921 945 24

13,498 16,456 2,958

Senior andYouth Population

Census2000

Census2010

Pct Change2000-2010

SEMCOG2035

Pct Change2010-2035

65 and over 721 945 31.1% 4,556 382.1%Under 18 3,300 3,423 3.7% 3,353 -2.0% 5 to 17 2,170 2,502 15.3% 2,408 -3.8% Under 5 1,130 921 -1.6% 945 2.6%

Note: Population by age changes over time because of the aging of people into older age groups, the movement ofpeople, and the occurrence of births and deaths.

Race and Hispanic Origin Census 2000 Census 2010

PercentagePoint Chg

2000-2010

Non-Hispanic 12,839 96.8% 12,814 94.9% -1.9% White 11,792 88.9% 10,387 77.0% -12.0% Black 327 2.5% 1,487 11.0% 8.6% Asian 378 2.9% 653 4.8% 2.0% Multi-Racial 261 2.0% 238 1.8% -0.2% Other 81 0.6% 49 0.4% -0.2%Hispanic 424 3.2% 684 5.1% 1.9%

Total Population 13,263 100.0% 13,498 100.0% 0.0%

Highest Level of Education*Census

2000

PercentagePoint Chg

1990-2000

Graduate / Professional Degree 11.7% 6.3%

Bachelor's Degree 26.5% 2.9%

Associate Degree 8.1% -2.5%

Some College, No Degree 25.6% 0.4%

High School Graduate 21.2% -4.1%

Did Not Graduate High School 7.0% -3.0%

* Population age 25 and over

Source Data

SEMCOG - Detailed Data

Michigan Department of Community Health - Vital Statistics

U.S. Census Bureau - American FactFinder

141

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http://www.michigan.gov/mdch/0,1607,7-132-2944_4669---,00.html

http://factfinder.census.gov









Note: All SEMCOG employment numbers are by place-of-work and do not include Farming,Construction, or Military jobs. Some differences exist between Current Job Estimates and ForecastedJobs. Learn more

Current Job Estimates by IndustrySEMCOG

2002 SEMCOG

2005Change

2002-2005

Natural Resources & Mining C C CManufacturing 7,986 5,967 -2,019Wholesale Trade 1,592 1,378 -214Retail Trade 1,057 1,050 -7Transportation & Warehousing 289 245 -44Utilities 0 0 0Information 39 146 107Financial Activities 85 127 42Professional, Scientific, & Technical Services 357 434 77Management of Companies & Enterprises 240 143 -97Administrative, Support, & Waste Services 1,256 1,247 -9Education Services 203 201 -2Health Care & Social Assistance 70 161 91Leisure & Hospitality 397 530 133Other Services 192 142 -50Public Administration C C C

Total 13,916 11,874 -2,042

Note: "C" indicates data blocked due to confidentiality concerns of ES-202 files.

Job Forecast

If any five-year interval employment numbers from 2005-2035 are not shown, the numbers were blocked forconfidentiality reasons.

Source: SEMCOG 2035 Forecast. - Move cursor over chart to view employment numbers

Forecasted Jobs by IndustrySEMCOG

2005 SEMCOG

2035Change

2005-2035

Natural Resources & Mining C C CManufacturing 6,002 2,671 -3,331Wholesale Trade 1,499 1,303 -196Retail Trade 1,208 1,020 -188Transportation & Warehousing 331 443 112Utilities C C CInformation 132 303 171Financial Activities 283 707 424Professional, Scientific, & Technical Services 878 2,341 1,463Management of Companies & Enterprises 147 139 -8Administrative, Support, & Waste Services 1,448 4,659 3,211Education Services 230 297 67Health Care & Social Assistance 228 1,836 1,608Leisure & Hospitality 611 1,239 628Other Services 308 543 235Public Administration C C C

Total 13,425 17,680 4,255

Note: "C" indicates data blocked due to confidentiality concerns of ES-202 files.

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Daytime PopulationSEMCOG andCensus 2000

Change1990-2000

Jobs 12,924 6,362 Non-Working Residents 5,307 2,164 Age 15 and under 2,950 1,320 Not in labor force 2,138 873 Unemployed 219 -29

Daytime Population 18,231 8,526 Note: The number of residents attending school outside Wixom is not available. Likewise, the number of studentscommuting into Wixom to attend school is also not known.

Census 2000

Where Workers Commute From * Workers Percent

1 Wixom 1,223 9.7%2 Detroit 1,048 8.3%3 Commerce Township or Wolverine Lake 813 6.4%4 Novi 509 4.0%5 Livonia 445 3.5%6 Milford or Milford Township 429 3.4%7 White Lake Township 397 3.1%8 Farmington Hills 395 3.1%9 Westland 358 2.8%

10 Waterford Township 325 2.6%- Elsewhere 6,676 52.9%

* Workers, age 16 and over, employed in Wixom 12,618 100.0%

Resident Population

Census 2000

Where Residents Work * Workers Percent

1 Wixom 1,223 15.8%2 Novi 811 10.5%3 Southfield 680 8.8%4 Farmington Hills 528 6.8%5 Detroit 386 5.0%6 Livonia 369 4.8%7 Commerce Township or Wolverine Lake 351 4.5%8 Troy 276 3.6%9 Walled Lake 216 2.8%

10 Milford or Milford Township 170 2.2%- Elsewhere 2,732 35.3%

* Workers, age 16 and over, residing in Wixom 7,742 100.0%

143







Income Census 2000Change

1990-2000

PercentChange

1990-2000

Median Household Income (in 1999 dollars) $ 44,320 $ 1,765 4.1% Per Capita Income (in 1999 dollars) $ 27,543 $ 1,219 4.6%

Household Income in 1999Census

2000

$200,000 or more 131

$150,000 to $199,999 116

$125,000 to $149,999 252

$100,000 to $124,999 351

$75,000 to $99,999 716

$60,000 to $74,999 698

$50,000 to $59,999 457

$45,000 to $49,999 191

$40,000 to $44,999 404

$35,000 to $39,999 390

$30,000 to $34,999 510

$25,000 to $29,999 491

$20,000 to $24,999 499

$15,000 to $19,999 297

$10,000 to $14,999 195

Less than $10,000 194

Total 5,892

Poverty Census 1990 Census 2000

PercentagePoint Chg

1990-2000

Persons in Poverty 299 3.5% 717 5.4% 1.9%Households in Poverty 142 3.5% 281 4.8% 1.3%

Source Data



U.S. Census Bureau - MCD/County Worker Flow Data

144

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http://www.census.gov/population/www/cen2000/mcdworkerflow.html







Housing Type Census 1990 Census 2000Change

1990-2000

New UnitsPermitted

2000-2011

Single Family Detached 1,329 2,349 1,020 290Duplex 10 9 -1 0Townhouse / Attached Condo 80 313 233 188Multi-Unit Apartment 3,032 3,403 371 0Mobile Home / Manufactured Housing 7 12 5 0Other 17 0 -17 -

Total 4,475 6,086 1,611 478Units Demolished - 62

Net (Total Permitted Units - Units Demolished) 416

Housing TenureCensus

2000Census

2010Change

2000-2010 Housing Tenure in 2010

Owner occupied 2,572 2,993 421 Renter occupied 3,317 2,732 -585 Vacant 197 852 655 Seasonal/migrant 19 39 20 Other vacant units 178 813 635

Total Housing Units 6,086 6,577 491

Housing Value(in 1999 dollars)

Census2000 Change 1990-2000

Median housing value $ 195,000 $ 64,158 Median gross rent $ 523 $ -61

Housing Value in 1999Census

2000

$1,000,000 or more 0

$500,000 to $999,999 22

$300,000 to $499,999 208

$250,000 to $299,999 403

$200,000 to $249,999 470

$175,000 to $199,999 444

$150,000 to $174,999 330

$125,000 to $149,999 328

$100,000 to $124,999 39

$80,000 to $99,999 72

$60,000 to $79,999 49

$40,000 to $59,999 15

$30,000 to $39,999 5

$20,000 to $29,999 0

$10,000 to $19,999 0

Less than $10,000 0

Specified Owner-Occupied Units 2,385

145







Residence 5 Years Ago *

* This table represents persons, age 5 and over, living in Wixom in 2000. The table does not represent persons whomoved out of Wixom from 1995 to 2000.

Source Data



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Roads & Bridges

Roads

Miles of public road (including boundary roads): 69

Pavement Condition (in Lane Miles)

Note: Poor pavements are generally in need of rehabilitation or full reconstruction to return to good condition. Fairpavements are in need of capital preventive maintenance to avoid deteriorating to the poor classification. Goodpavements generally receive only routine maintenance, such as street sweeping and snow removal, until theydeteriorate to the fair condition.

Bridge Status 2007 2008 2009

PercentagePoint Chg

2007-2009

Open 1 100.0% 1 100.0% 1 100.0% 0.0%Open with restrictions 0 0.0% 0 0.0% 0 0.0% 0.0%Closed* 0 0.0% 0 0.0% 0 0.0% 0.0%

Total bridges 1 100.0% 1 100.0% 1 100.0% 0.0% * Bridges may be closed because of new construction or failed condition.

Deficient Bridges 2007 2008 2009

PercentagePoint Chg

2007-2009

1 100.0% 0 0.0% 0 0.0% -100.0% Note: A bridge is considered deficient if it is structurally deficient (in poor shape and unable to carry the load for which itwas designed) or functionally obsolete (in good physical condition but unable to support current or future demands, forexample, being too narrow to accommodate truck traffic).

Travel

Transportation to Work, 2000 *

* Resident workers age 16 and over

147







Transportation to Work Census 1990 Census 2000

PercentagePoint Chg

1990-2000

Drove Alone 4,863 92.1% 6,799 87.7% -4.4%Carpooled or Vanpooled 338 6.4% 623 8.0% 1.6%Public Transportation 16 0.3% 0 0.0% -0.3%Walked 23 0.4% 111 1.4% 1.0%Other Means 11 0.2% 40 0.5% 0.3%Worked at Home 29 0.5% 177 2.3% 1.7%

Resident workers age 16 and over 5,280 100.0% 7,750 100.0% 0.0%

Mean Travel Time To Work Census 1990 Census 2000Change

1990-2000

For residents age 16 and overwho worked outside the home

26.5 minutes 27.1 minutes 0.6 minutes

Transit

Public Transportation: Wixom Senior Citizen Transportation Program

Safety

Crashes, 2001-2010

Source: Michigan Department of State Police,Criminal Justice Information Center, and SEMCOG.

- Move cursor over chart to view crashcounts

Crash Severity 2006 2007 2008 2009 2010

Percent ofCrashes

2006-2010

Fatal 0 1 0 1 2 0.2%Incapacitating Injury 7 9 3 6 4 1.4%Other Injury 90 68 55 67 82 17.2%Property Damage Only 333 374 375 301 330 81.3%

Total Crashes 430 452 433 375 418 100.0%

148

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Crashes by Involvement 2006 2007 2008 2009 2010

Percent ofCrashes

2006-2010

Red-light Running 6 16 7 6 6 1.9%Lane Departure 45 40 50 39 46 10.4%Alcohol 19 14 15 8 10 3.1%Drugs 0 1 1 1 2 0.2%Deer 17 19 22 19 19 4.6%Train 0 0 0 0 0 0.0%Commercial Truck/Bus 35 21 24 14 30 5.9%School Bus 0 0 0 1 1 0.1%Emergency Vehicle 2 3 6 1 3 0.7%Motorcycle 5 3 4 3 2 0.8%Intersection 151 136 124 112 117 30.4%Work Zone 6 2 45 6 0 2.8%Pedestrian 1 2 0 2 1 0.3%Bicyclist 2 0 4 1 1 0.4%Older Driver (65 and older) 61 58 71 54 64 7.6%Young Driver (Under 25) 182 178 168 142 152 20.3%

High-Frequency Crash Intersections

LocalRank

CountyRank

RegionRank Intersection

Annual Avg2006-2010

1 34 82 Grand River Ave @ Wixom Rd S 31.82 64 170 Pontiac Trl @ Beck Rd 25.23 128 374 Beck Rd @ West Rd 18.84 184 561 E I 96/NB Wixom Ramp @ Wixom Rd S 16.05 311 910 12 Mile Rd W @ Beck Rd 12.26 493 1,544 Beck Rd @ Beck Rd 8.87 565 1,794 Old Wixom Rd @ Pontiac Trl 7.88 565 1,794 West Maple Rd W @ West Maple Rd W 7.89 585 1,874 W I 96/NB Wixom Ramp @ Wixom Rd S 7.6

10 606 1,963 Wixom Rd S @ West Rd 7.4

Note: Intersections are ranked by the number of reported crashes, which does not take into account traffic volume.Crashes reported occurred within 150 feet of the intersection.

149

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High-Frequency Crash Segments

LocalRank

CountyRank

RegionRank Segment From Road - To Road

Annual Avg2006-2010

1 68 158 Beck Rd West Rd - Pontiac Trl 43.02 91 218 E I 96 Hill Rd S - E I 96/SB Wixom Ramp 38.03 151 387 W I 96 Hill Rd S - SB Wixom/W I 96 Ramp 30.24 193 493 Beck Rd Pontiac Trl - West Maple Rd W 27.45 222 563 Beck Rd 12 Mile Rd W - West Rd 25.66 228 574 Pontiac Trl Wixom Rd S - Beck Rd 25.47 231 584 Grand River Ave Napier Rd - Wixom Rd 25.28 316 782 Wixom Rd S West Maple Rd W - Loon Lake Rd 22.29 332 833 Wixom Rd S Grand River Ave - NB Wixom/E I 96

Ramp21.6

10 412 1,105 Pontiac Trl Hill Rd S - Wixom Rd S 18.8

Note: Segments are ranked by the number of reported crashes, which does not take into account traffic volume.

Source Data



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SEMCOG 2008 Land Use Acres Percent

Agricultural 0 0.0% Single-family residential 1,495 24.9% Multiple-family residential 227 3.8% Commercial 319 5.3% Industrial 1,836 30.6% Governmental/Institutional 260 4.3% Park, recreation, and open space 762 12.7% Airport 0 0.0% Transportation, Communication, and Utility 950 15.8% Water 154 2.6%

Total Acres 6,003 100.0%

Note: SEMCOG's 2008 Land Use data set represents land use only and not land cover. Due to this difference, changeanalysis using this data set and previous SEMCOG land use/land cover data sets in not possible. Noticeable differencesin map appearance and classification acreage totals are the result of this land use data originating from digital parcelfiles assigned land use codes based on their assessed property class and the lack of any land cover data.

Source Data


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535 Griswold St., Suite 300 * Detroit, Michigan 48226 * (313) 961-4266

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State & County QuickFacts

Wixom (city), Michigan

People QuickFacts Wixom MichiganPopulation, 2010 13,498 9,883,640Population, percent change, 2000 to 2010 1.8% -0.6%Population, 2000 13,263 9,938,444Persons under 5 years, percent, 2010 6.8% 6.0%Persons under 18 years, percent, 2010 25.4% 23.7%Persons 65 years and over, percent, 2010 7.0% 13.8%Female persons, percent, 2010 50.1% 50.9%

White persons, percent, 2010 (a) 79.8% 78.9%Black persons, percent, 2010 (a) 11.1% 14.2%American Indian and Alaska Native persons, percent, 2010 (a) 0.2% 0.6%Asian persons, percent, 2010 (a) 4.9% 2.4%Native Hawaiian and Other Pacific Islander, percent, 2010 (a) Z 0.0%Persons reporting two or more races, percent, 2010 2.1% 2.3%Persons of Hispanic or Latino origin, percent, 2010 (b) 5.1% 4.4%White persons not Hispanic, percent, 2010 77.0% 76.6%

Living in same house 1 year & over, 2005-2009 78.8% 85.4%Foreign born persons, percent, 2005-2009 11.8% 6.0%Language other than English spoken at home, pct age 5+, 2005-2009 15.4% 9.0%High school graduates, percent of persons age 25+, 2005-2009 90.9% 87.4%Bachelor's degree or higher, pct of persons age 25+, 2005-2009 36.1% 24.5%Mean travel time to work (minutes), workers age 16+, 2005-2009 25.7 23.7

Housing units, 2010 6,577 4,532,233Homeownership rate, 2005-2009 50.8% 74.6%Housing units in multi-unit structures, percent, 2005-2009 53.1% 17.8%Median value of owner-occupied housing units, 2005-2009 $224,600 $147,500Households, 2005-2009 5,848 3,860,160Persons per household, 2005-2009 2.26 2.53Per capita money income in past 12 months (2009 dollars) 2005-2009 $30,608 $25,172Median household income 2005-2009 $53,125 $48,700People of all ages in poverty - percent, 2005-2009 10.2% 14.5%

Business QuickFacts Wixom MichiganTotal number of firms, 2007 1,594 816,972Black-owned firms, percent, 2007 S 8.9%American Indian and Alaska Native owned firms, percent, 2007 F 0.7%Asian-owned firms, percent, 2007 S 2.6%Native Hawaiian and Other Pacific Islander owned firms, percent, 2007 F 0.1%

Page 1 of 2Wixom (city) QuickFacts from the US Census Bureau

11/28/2011http://quickfacts.census.gov/qfd/states/26/2688140.htmlConfidential

152

Hispanic-owned firms, percent, 2007 F 1.3%Women-owned firms, percent, 2007 22.3% 30.4%

Manufacturers shipments, 2007 ($1000) 819,010 234,455,768Merchant wholesaler sales, 2007 ($1000) 961,420 107,109,349Retail sales, 2007 ($1000) 361,209 109,102,594Retail sales per capita, 2007 $26,896 $10,855Accommodation and food services sales, 2007 ($1000) 22,123 14,536,648

Geography QuickFacts Wixom MichiganLand area in square miles, 2010 9.15 56,538.90Persons per square mile, 2010 1,474.5 174.8FIPS Code 88140 26Counties

(a) Includes persons reporting only one race.(b) Hispanics may be of any race, so also are included in applicable race categories.

D: Suppressed to avoid disclosure of confidential informationF: Fewer than 100 firmsFN: Footnote on this item for this area in place of dataNA: Not availableS: Suppressed; does not meet publication standardsX: Not applicableZ: Value greater than zero but less than half unit of measure shown

Source U.S. Census Bureau: State and County QuickFacts. Data derived from Population Estimates, American Community Survey,Census of Population and Housing, Small Area Income and Poverty Estimates, County Business Patterns, Economic Census, Survey ofBusiness Owners, Building Permits, Consolidated Federal Funds Report, Census of GovernmentsLast Revised: Tuesday, 18-Oct-2011 15:30:07 EDT

Page 2 of 2Wixom (city) QuickFacts from the US Census Bureau

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November 8, 2010

October 12, 2010 CITY OF WIXOM, MICHIGANMap Issue Date:

Base Map Current as of:

FOR FUTURE LAND USE

Scale: 1 inch= 2,750 feet8ASTERM LANP

LEGENDRes ident ial

Multi - Family

Single - Family

Non - R esident ial

VCA

General Business

Industrial Research Office

Industrial Service

Industry

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Sewage Treatment Plant

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November 8, 2010



TITLE 18 OF THE ZONING ORDINANCE(ADOPTED: August 26, 2008)

AS AMENDED THROUGH August 26, 2008

CONSENT JUDGMENTS

Rigg Investment #1 / Nov., 1988 Allowed NE 4.8 Acres to be developed for commercial use consistent with B-2 zoning and the balance (41.42 Acres) with 224 resid. condo units in 8 bldgs. Actual development resulted in 20.86 acres being platted into 79 lots [3.8 units / acre] with an avg. lot size equal to 7,950 sq.ft.

T. William Berube / Aug., 1993 City agreed to re-zone 2.83 acres from M-1 to I-S

Singh Const. Co. / Mar., 1997 Trails of Loon Lake property allowed to be developed under the Subdivision Open Space Option > 45.58 acres were platted into 95 lots [2.08 units/ acre] with avg lot size equal to 11,446 sq.ft.

Basim Abdelnour et alli / Nov., 2006 Allowed SE corner of Wixom and Loon Lake Roads to be developed for a commercial use that conforms to one of three conceptual plans approved as part of the Consent Judgment - Allowed uses are limited to medical office, daycare and a bank or a combination with additional limitations on gross bldg. floor area and bldg. height. Zoning remains RA-1 until rezoned.

1

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Zoning District Legend

One-Family Residential (12,500 sq.ft) R-3

One-Family Residential ( 7,200 sq.ft) R-4

Multiple-Family Residential ( 9 units/acre)Approx.

RM-1

Multiple-Family Residential (12 units/acre)Approx.

RM-2

Manufactured Home Park MHP

Local Business B-1

Community Business B-2

General Business B-3

Freeway Service FS

Industrial Research Office IRO

Industrial Service I-S

Light Industrial M-1

Village Center Area VCA

General Industrial M-2

One-Family Residential R-1(20,000 sq.ft)

One-Family Residential (15,000 sq.ft) R-2

Planned UnitDevelopment Overlay PUD

Office Service OS-1

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DO R E C T

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SIDE CT

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( PRO P

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)

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MS R

AVINE

DR

§̈¦96

H O

NE

Y-

BE RR Y C T

WE

ST D R

MILF

ORD

TOW

NSHI

P

COMMERCE TOWNSHIP COMMERCE TOWNSHIP

COMMERCE TOWNSHIP

CITY OF NOVI

CITY OF NOVI

LYON

TOW

NSHI

P

WIXOM HABITAT

DPW & SEWAGETREATMENT F ACILITY FIRE

STATIONNO. 1

WIR EHOU SE

WIXOMCEMETERY

CIVICCENTER

HISTORICALGIBSON

PARK

FIREHOUSENO. 2

MACKPARK

GUN NARMETTAL A PARK

GIL BERT C. WILLISPARK

HICKORY HILL SGOLF COURSE

MEIJER

LOON L AKEELEMENTARY

SCHOOL

WIXOMELEMENTARY

SCHOOL

DR. SARAH BANKSMIDDLE SCHO OL

WIXOM BAPTIST CHURCH

WIXOM CHRISTIAN SCHOOL

HICKORY HILL SGOLF COURSE

CSX LINCOLN YARD

(S EE IN SET )

OTCVOCATIONAL

SCHOOL

WAL LED LAKEWESTERN

HIGH SCHOOL

POSTOFFICE

LOON LAKE

NORTO

N CREEK

TWIN SUNLAKES

NO RTON CREEK

GALLAGER LAK E

NORTO

N CREEK

TWIN SUN LAKES

November 8, 2010



Scale: 1 inch= 2,750 feet8OMMUNITYC ACILITIESF

MAJOR ROADS

STREETS

RAILROAD

WIXOM CITY LIMITS

INTERSTATES

CSX RAILROAD

CITYHALL

PO LICEDEPT.

COMM UNITYCENT ER /

LIBRARY

PONTIAC TRAIL

CIVIC CENTER - INSET

158

COMM ERCE TOWNSHIP

MILF

ORD

TOW

NSHI

P

COMM

ERCE

TOW

NSHI

P

LYON

TOW

NSHI

P

CITY

OF

NOVI

CITY OF NOV I

CH

AR

MS

RD

CHARM S RD

CHA

RM

S RD

WIX

OM

RD

WIX

OM

RD

LOON LAKE RD

LOO

N LA

KE R

D

LOON LAKE RDB

EC

K R

D

W M APLE RD

W M APLE RD

E M

AP

LE

RD

PONTIAC T RAIL

WIX

OM

RD

PONTIAC T RAIL

BE

CK

RD

BE

CK

RD

WIX

OM

RD

WEST RD WEST RD

BE

CK

RD

WIX

OM

RD

WIX

OM

RD

GRAND RIVER AVE

TWEL VE M IL E RD

TWELVE MILE RD

§̈¦I-9 6

§̈¦I-9 6

LOO

N LA

KE

RO

AD

Loon Lake

Twin SunLake

Gi lbert Wil lisPark * Hick ory Hi lls

Golf Course

Wixom Habi ta tPark

Gall agerLake

Gunnar MettalaPark

B

C

D

E

F

L

G

IJ K

H

M

C

A

IP10

IC04

IC03

IP13

IP11

IP05

IP04

IC02

IP16

IP14

IP02

IP09

IP08

IP11

IP11

IP17

IP01

IP07

IP03

IP15

IC01

IC05(Proposed)

Novermber 8, 2010

October 12, 2010

Map Issue Date:

Base Map Current as of:Scale: 1 inch= 2,750 feet8CITY OF WIXOM, MICHIGAN

General Market Areas

/ NDUSTRIALIOMMERCIALC ONESZANDL

159

COMMERCE TOWNSHIP

MILF

ORD

TOW

NSHI

P

COMM

ERCE

TOWN

SHIP

LYON

TOWN

SHIP

CITY

OF N

OVI

CITY OF NOVI

CH

AR

MS

RD

CHARMS RD

CH

AR

MS

RD

WIX

OM

RD

WIX

OM

RD

LOO N L AKE RD

LOO

N L

AK

E R

D

LOO N L AKE RD

BE

CK

RD

W M APLE RD

W MAPLE RD

E M

AP

LE

RD

PONTIAC TRAIL

WIX

OM

RD

PONTIAC TRAIL

BE

CK

RD

BE

CK

RD

WIX

OM

RD

WEST RD WEST RD

BE

CK

RD

WIX

OM

RD

WIX

OM

RD

GRAND RIVER AVE

TWELVE MILE RD

T WELVE MI LE

RD

§̈¦I-96

§̈¦I-96TW EL VE M IL E R O AD

Loon Lake

Twin SunLake

Gi lber t Wi ll isPark * Hickory Hills

Golf Cour se

Wixom HabitatPark

Gal lagerLake

Gunnar Metta laPark

Proposed

Ro ad & Utilities inbut p lat has notbeen recor ded

*

IC04

IP17

IP10 IP11

IP01

IC03

IP09

IP03

IP07IP13

IP02

IP14

IP05

IP06

IP11

IP04

IP16IP15

IC02

IC05(P roposed)

IP11*

IP08

IC01

8

*IP01 Martin Industrial Park 17.54

Acres

5 Sites

*IP02 Wixom Industrial Park 37.70

Acres

26 Lots*

*IP03 Bruce Industrial Park 41.50

Acres

14 Sites

*IP04 Wixom Business Center 49.53

Acres

26 Lots

*IP05 Beck-Tec Industrial Park 18.14

Acres

16 Lots

*IP06 Avante Industrial Park 13.08

Acres

4 Sites

*IP07 Schonsheck Development Condominium

6.98

Acres

5 Units

*IP08 Grand Oak Commerce Center

38.00

Acres

40 Lots

*IP09 Wixom West Technology Centre

31.17

Acres

15 Units

*IP10 Century Industrial Park 129.79

Acres

34 Units

IP11 Beck West Corporate Park 22.54

Acres

11 Units

*IP12 Oak Creek Corporate Center

53.44

Acres

17 Lots

*IP13 Beck-North Corporate Park 34.32

Acres

13 Sites

*IP14 Alpha-Tech Corporate Park 75.62

Acres

37 Units

*IP15 Beck Business Center 26.94

Acres

10

Mul

ti-Te

nant

Bl

dgs.

*IP16 Enterprise Business Park Site Condominium

6.75

Acres

3 Units

*IP17 Dennis Industrial Site Condominium

16.58

Acres

9 Units

*IP18

*IC01 Grand Oaks Park Condominium

6.22

Acres

4 Units

*IC02 Crossroads Business Center Condominium

10.27

Acres

24 Units

*IC03 Quadrants Professsional Office & Research Centre Condominium

2.74

Acres

2 Units

*IC04 Varsity Technology Center Condominium

4.08

Acres

2 Units

*IC05 Pinnacle Business Park Condominiums (Proposed)

3.79

Acres

18 Units

INDUSTRIAL CONDOMINIUMS

INDUSTRIAL PARKS / SITE CONDOMINIUMS

Scale: 1 inch= 2,750 feetCITY OF WIXOM, MICHIGAN

Industrial Parks/Site Condominiums/Condominium Projects

/ NDUSTRIALIOMMERCIALC ONESZANDLAugust 16, 2010

August 10, 2010

Map Issue Date:


160

COMMERCE TOWNSHIP

MILF

ORD

TOW

NSHI

P

COMM

ERCE

TOWN

SHIP

LYON

TOWN

SHIP

CITY

OF N

OVI

CITY OF NOVI

CH

AR

MS

RD

CHARMS RD

CH

AR

MS

RD

WIX

OM

RD

WIX

OM

RD

LOO N L AKE RD

LOO

N L

AK

E R

D

LOO N L AKE RD

BE

CK

RD

W M APLE RD

W MAPLE RD

E M

AP

LE

RD

PONTIAC TRAIL

WIX

OM

RD

PONTIAC TRAIL

BE

CK

RD

BE

CK

RD

WIX

OM

RD

WEST RD WEST RD

BE

CK

RD

WIX

OM

RD

WIX

OM

RD

GRAND RIVER AVE

TWELVE MILE RD

TWE LVE MI LE

RD

§̈¦I-96

§̈¦I-96

Loon Lake

Twin SunLake

Gi lber t Wi ll isPark

Hickory Hi llsGolf Course

Wixom HabitatPark

Gal lagerLake

Gunnar Metta laPark

SP01SP01

SP01

SP01SP01

SP01

*S31

*S32

SP01

*S32

*S32

*S32

*S29 *S29

*S29

November 8, 2010

October 12, 2010

Map Issue Date:

Base Map Current as of: 8

LEGENDWixom City Limits

Miscellaneous Utility

Scale: 1 inch= 2,750 feetCITY OF WIXOM, MICHIGAN

Utility and Miscellaneous Comm./Indus. Properties

ONESZANDL/ NDUSTRIALIOMMERCIALC

161

!H!H

!H

!H

!H

!H

!H

!H

!H

4

9

6

7

5

8

30

31

29

32

20

28

§̈¦I-96

WIX

OM

RO

AD WEST ROAD

TWEL VE MIL E ROAD

BE

CK

RO

AD

BE

CK

RO

AD


BE

CK

RO

AD

WIX

OM

RO

AD

MAPLE ROAD

MAPLE ROAD

POTTER ROAD

CHARMS ROAD

LOON LA KE ROAD

LOO

N LAKE RO

AD

Loon LakeTwin Sun

Lake



Wixom HabitatPark

GallagerLake

Gunnar MettalaPark

GRAND R IVER AVE.

City of N ov i

City

of N

ovi

Com

mer

ce T

owns

hip

Milf

ord

Tow

nshi

p

Commerce Tow nship

Mobile HomePark

§̈¦I-96

Lyon

Tow

nshi

p

11,995

22,479

28,067

30,539

11,109

9,45315,997

1,66820,113

13,072

4,84518,340

10,324

2,7751,899

1,027

21,540

November 8, 2010

October 12, 2010

Map Issue Date:

Base M ap Current as of :

Act 51 Road Classification

Major St reets

Local S treets

Cou nty P rim ary

State Trunkline

Traff ic Count Intersectio n

Average Dai ly Traf fic Counts

!.

#,###

Scale: 1 inch= 2,750 feet8CITY OF WIXOM, MICHIGAN

RANSPORTATIONT ONDITIONSC

162

4

9

6

7

5

8

30

31

29

32

20

28

§̈¦I-96

WIX

OM

RO

AD

WEST ROAD

TWEL VE MIL E ROAD

BE

CK

RO

AD

BE

CK

RO

AD


BE

CK

RO

AD

WIX

OM

RO

AD

MAPLE ROAD

MAPLE ROAD

POTTER ROAD

CHARMS ROAD

LOON LA KE ROAD

LOO

N LAKE RO

AD

Loon LakeTwin Sun Lake



Wixom HabitatPark

GallagerLake

Gunnar MettalaPark

GRAND R IVER AVE.

City of N ov i

City

of N

ovi

Com

mer

ce T

owns

hip

Milf

ord

Tow

nshi

p

S

V

E

M

16 79

43 5

28

E

5

Commerce Tow nship

Mobile HomePark

§̈¦I-96

10

Lyon

Tow

nshi

p

CSX Rail R/W

Coe Rail R/W

8Scale: 1 inch= 2,750 feet

November 8, 2010

October 12, 2010

Map Issue Date:


SchoolsProposed

High School

Vocational

Middle School

Elementary

S

V

M

E

0

Resident ial

Single - Family

Single - Family

Mul ti - Family

Single - Family

Mul ti - Family

(12,500 sq.ft )

(15,000 sq.ft )

( 9 units/acre)

( 7,200 sq.ft )

(12 units/acre)Approx.

Approx.

Non - ResidentialVCA

Freeway Service

Industria l Research Office

Industria l Serv ice

Light Industria l

Community Business

Loc al Busines s

Heavy Industrial

Util ity

Exist ing & Proposed Thorofares

County Local

City Major

County Primar y

State Truck line

( 96' R.O.W.)

( 60'-100' R.O.W.)

(120' R.O.W.)

(250' R.O.W.)

City Local

Proposed Road

( 60' R.O.W.)

§̈¦

Public

Civ ic Center

Sewage Treatm ent Plant

Pol ice Station

Fi re Station

Librar y

Depar tm ent of Public Works

Cemetar y

Gibson Historic Park

1

4

65

7

32

9

Parks / Preservation LandPublic

His toric Si te (Munshaw House)10

Wire/Tiffin House8

CITY OF WIXOM, MICHIGAN

SEUANDLUTUREF

163

COMMERC E TOWNSHIP

MILF

ORD

TOW

NSHI

P

COMM

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TOW

NSHI

P

LYON

TOW

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P

CITY

OF

NOVI

CITY OF NOVI

DELPHIN E

COR RAN DR

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VE

R D

R

DE

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DR

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HA

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R

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VIE

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R

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CHARM

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SUM MIT

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NO. 1

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Scale: 1 inch= 2,537 feet8

Waterbody

Interstate

Major Road

Railroad

Street

164

A ALPHA CT ..................................................................................................................E13 ALPHA DR...................................................................................................D13:E14:F14 AMBERWOOD DR...................................................................................................... H4 ANDERSEN CT ................................................................................................. G10:H10 ANDOVER CT ............................................................................................................. G5 ANDOVER DR....................................................................................................... G4:G5 ANNA CT................................................................................................................... G13 ANTHONY DR .................................................................................................. G11:G12 APPACHE TRL....................................................................................................... F8:G8 ARBOR AVE................................................................................................................. G2 ASH ST........................................................................................................................... F9 AVANTE DR ...................................................................................................... G13:H13 AZTEC DR........................................................................................................G8:H7:H8

B

BALSAM CT................................................................................................................. G5 BARBERRY CIR ..................................................................................................... C2:D2 BASS WOOD LN .................................................................................................... F7:G7 BAYWOOD DR.......................................................................................................C2:C3 BECK RD.............................................H5:H6:H7:H8:H9:H10:H11:H12:H13:H14:H15 BEECHNUT DR ..................................................................................................... G5:G6 BEECHWOOD ST................................................................................................ G9:G10 BELL CONEY...........................................................................................................E4:E5 BENNINGTON DR ................................................................................................ B6:C6 BISHOPS TER...........................................................................................................H4:I4 BLACK LOCUST DR....................................................................................................E5 BLUE HERON LN .................................................................................................. F6:G6 BOGIE DR...............................................................................................................H2:H3 BRANCH CT .................................................................................................................E2 BRANCH DR.................................................................................................................E2 BRENTWOOD DR........................................................................................................C3 BRIARWOOD CT ............................................................................................G5:H4:H5 BRISTOL SQ ................................................................................................................. H8 BROOKSIDE CT........................................................................................................... D4 BRUCE........................................................................................................................... H3 BURGAN ...................................................................................................................... G2

C

CALPERNIA .......................................................................................................... G5:G6 CAMERON CT............................................................................................................. A6 CARTIER DR.............................................................................................................. H10 CARTIER CT .............................................................................................................. H10 CASTLEWOOD DR..................................................................................................... D6 CASTLEWOOD DR......................................................................................................C6 CENTER BLVD .............................................................................................................E8 CENTER OAKS CT..............................................................................................B14:B15 CENTURY CT .........................................................................................................A9:B9 CENTURY DR.................................................................................................. B8:B9:B10 CHAMBERS ST .............................................................................................................E8 CHAMBERS W .............................................................................................................E8 CHANTICLAIR CIR..................................................................................................I4:I5 CHARMS RD......................................................................................... A2:A3:B3:C3:D3 CHARMS RAVINE DR ............................................................................................... A3 CHERRYSTONE CT...................................................................................................... I4 CHESTNUT DR ........................................................................................................... G6 CHICKASAW............................................................................................................... G2 CHIEF LN ............................................................................................................... G7:G8 CHOWNINGS GLEN DR............................................................................................. I4 CLIFFSIDE DR ................................................................................................... E2:E3:F3 CLOVER CT ............................................................................................................... A14 CORRAN CT .................................................................................................................C2 CORRAN DR.................................................................................................................B2 CRANBERRY CT ......................................................................................................... H4 CREEK DR .............................................................................................................. G4:H4 CRESTVIEW BLVD ......................................................................................................E5 CREYTS......................................................................................................................... H3

D

DELPHINE DR........................................................................................................A2:B2 DENNIS CT ...................................................................................................................C8 DEVONSHIRE DR............................................................................................A2:A3:B2 DOVER DR ............................................................................................................. A2:A3 DOWNHAM DR......................................................................................................B2:B3 DOWNING ST .....................................................................................................E13:F13 DURR DR.................................................................................................................C8:C9

E

EDENBROOK CT ........................................................................................................ G5 ELM CT ......................................................................................................................... G6 ENTERPRISE CT........................................................................................................ H14 (E) EUNA...................................................................................................................... H2 (W) EUNA .................................................................................................................... H2 EVONA ..................................................................................................................H2:H3

F

FAIRBURY.............................................................................................................. G3:H3 FAIRFIELD AVE....................................................................................................H2:H3 FAWN DR.................................................................................................................F5:F6 FERNWOOD ST........................................................................................................... G9 FLAMINGO..............................................................................................................F4:F5 FOREST BAY CT.................................................................................................... G3:G4 FOX HOLLOW CT ........................................................................................................ I5 FRANK ST ................................................................................................................... F11

G

GLANDORE CT............................................................................................................C3 GLENGARY RD............................................................................................F1:G1:H1:I1 GRAMERCY CT............................................................................................................. I4 GRAND NAPIER DR ................................................................................................ A15 GRAND NAPIER RD ................................................................................................ A15 GRAND OAKS CT .............................................................................................C14:C15 GRAND RIVER AVE........................................................... A14:B14:B15:C15:D15:E15 GRASMERE LN ...........................................................................................B2:B3:C2:C3 GREENBRIAR CT........................................................................................................ G5 GROUSE ST ..............................................................................................................E4:F4

H

HAMPTON CT ................................................................................................. B7:C7:C8 HAZEL AVE................................................................................................................. G2 HEDIGHAM BLVD................................................................................................C6:C7 HELFER BLVD.................................................................................................... B15:C15 HICKORY ST.......................................................................................................... G9:H9 HICKORY HILL AVE .................................................................................................. F2 HILLCREST ............................................................................................................. F2:G2 HONEY SUCKLE CT ................................................................................................... F6 HOPKINS DR.................................................................................................... D3:E2:E3 HUNTINGDON DR ................................................................................................B2:B3

I

I-96 ..........................................................................A13:A14:B14:C14:D14:E15:F15:G15 INDIAN TRL................................................................................................................. F8

J

JOHANNA WARE W ............................................................................................D8:E8

K KENNEPORT CT........................................................................................................... I4 KENTON .......................................................................................................................C3 KINGS CROWN CT .................................................................................................... H4 KINGSLEY DR........................................................................................................ B7:C7

L

LAKERIDGE AVE .................................................................................................. F2:G2 LAKESIDE CT............................................................................................................... E4 LAKEVIEW BLVD................................................................................................... F8:F9 LAMELLA ................................................................................................................ F2:F3 LANDROW DR............................................................................................................ A8 LIBERTY DR.......................................................................................................H13:H14 LOON DR ...................................................................................................................... F4 LOON LAKE RD .............................................................. C2:D2:E2:F2:G2:G3:H4:I4:I5 LORIE LN ............................................................................................................G12:G13 LYONIA AVE......................................................................................................... G3:H3 LYONIA AVE............................................................................................................... H3

M

MAGANSER DR......................................................................................................E4:F4 MAGELLAN .............................................................................................................. H13 (E) MAPLE RD....................................................................................................... A6:A7 (W) MAPLE RD ............................................................... A7:B7:C7:D7:E6E7:F6:G6:H6 MAPLE FOREST DR .............................................................................................. F6:G6 MAPLE FOREST CT.................................................................................................... G6 MAPLE NORTH TRL.................................................................................................. H5 MAPLEWOOD LN...................................................................................................... D7 MARIPOSA DR............................................................................................................. F4 MARTIN DR............................................................................................................... D11 MEADOWOOD DR ................................................................................................... B15 MEDINA DR ............................................................................................................ F2:F3 MEIJERS...............................................................................................................C15:D15 MERRIWEATHER CT................................................................................................... I4 METTALA LN .................................................................................................. F7:G6:G7 MILLSTREAM CT ........................................................................................................C6 MILLSTREAM DR.............................................................................................B6:C6:C7 MORNINGDOVE....................................................................................................E4:E5 MULBERRY CT............................................................................................................. E6

N

(E) NALONE ................................................................................................................ H2 (W) NALONE............................................................................................................... H2 NAPIER RD........................................................................................................ A14:A15 NATURES COVE CT .................................................................................................. H5 NIGHTINGALE RD ................................................................................................ F4:F5 NISSEN CT .................................................................................................................... B7 NORTH CREEK DR .................................................................................................... G4 NORTON CREEK BLVD ............................................................................................ D4 NORTON CREEK CT.................................................................................................. D4

O

OAKCREEK DR.................................................................................................. B10:C10 OAKLAND OAKS CT................................................................................................ B14 (E) OLANTA ................................................................................................................ H2 OLD WIXOM RD................................................................................................... D8:D9 ORLAND ...................................................................................................................... G2 OTTER CT ..................................................................................................................... F6

P

PALMER CT.................................................................................................................. E3 PALMER DR ............................................................................................................E2:E3 PARKVIEW CT............................................................................................................. E5 PARTRIDGE DR ......................................................................................................E4:F4 PAWNEE DR.......................................................................................................... G7:G8 PHEASANT RUN CT................................................................................................... E6 PHEASANT RUN EAST DR ..................................................................................E5:F5 PHEASANT RUN WEST DR .................................................................................E6:E7 PINE DR........................................................................................................................ G6 PINECREST CT........................................................................................................E4:E5 PINEWOOD DR ......................................................................................................... B15 POND VIEW CT .......................................................................................................... D4 POND VIEW DR.......................................................................................................... D4 PONTIAC TRL..................................................................... A8:B8:C8:D8:E8:F8:G8:H8 POTTER ........................................................................................................................ G5 POTTER RD............................................................................................D5:E5:F5:G5:H5 PROGRESS DR........................................................................................................... H14

Q

QUALLA AVE ............................................................................................................. H2

R RAINTREE CT ..............................................................................................................C3 RED MAPLE LN..................................................................................................... F6:G6 RENTON....................................................................................................................... D8 RIKKI ANN CT...................................................................................................... G6:H6 RIKKI ANN CT...................................................................................................... G6:H6 RIVER DR ............................................................................................................ B15:C15 ROSEWORTH .............................................................................................................. G2 ROTHBURY DR............................................................................................................ B3 ROXBURY RUN............................................................................................................. I5 ROYALTON .................................................................................................................. F2 RYAN CT.................................................................................................................... H12

S

SAINT CHARLES PL ................................................................................................... F6 SAMS WAY ................................................................................................................ D15 SHADOW LN .............................................................................................................. A7 SHADY MAPLE DR................................................................................................ F6:F7 SHAFER DR ............................................................................................................... D10 SHEWBIRD...............................................................................................................E5:F5 SIBLEY CT ..................................................................................................................... E7 SOUTH CREEK DR.........................................................................................G4:H4:H5 SPRUCEWOOD DR ................................................................................................... B15 STONEGATE CT ........................................................................................................... I4 STONE RIDGE DR ...........................................................................................F8:F9:F10 SUMMIT CT ..................................................................................................................C3

T TAMARACK ST ......................................................................................... F8:G8:G9:H9 TEANECK CIR........................................................................................................... I4:I5 TERRA CT ............................................................................................................... D5:E5 (E) THEODORE ............................................................................................................D8 THEODORE ST....................................................................................................... D8:E8 THIMBLEBERRY CT.................................................................................................... E6 THORNWOOD.............................................................................................................D8 TITAN DR ........................................................................................................... D11:E11 TOWER CT.................................................................................................................. E14 TRAILSIDE BLVD .............................................................................................D4:E4:E5 TRILIUM CT .................................................................................................................G4 TROMBLEY LN ............................................................................................................G2

U

V VARSITY CT ............................................................................................................... B10 VIXEN CT................................................................................................................. E6:F6

W

W 12 MILE RD .................................................................................... A15:B15:C15:H15 WAINSTOCK.......................................................................................................... D9:E9 WALL ST .......................................................................................................E12:E13:E14 WALNUT ST........................................................................................................... F9:G9 WARRINGTON DR ...............................................................................................A2:A3 WARRIOR DR .................................................................................................. F8:G7:G8 WATERS EDGE CT....................................................................................................... I4 WENONA CT .............................................................................................................. H7 WENONA DR.............................................................................................................. H7 WEST RD......................................................................................D12:E12:F12:G12:H12 WEST TECH DR ..................................................................................................E11:E12 WEXFORD DR.............................................................................................................. B3 WEYHILL DR ...............................................................................................................C3 WHITE TRL.............................................................................................................. F5:F6 WILD ROSE CT ............................................................................................................ F6 WILDWOOD ST ...................................................................................................... F8:F9 WILLOW ST............................................................................................................ F9:G9 WILLOWICKER DR................................................................................................B2:B3 WINDINGWAY DR............................................................................................... C2:C3 (N) WIXOM RD ....................................................................... D2:D3:D4:D5:D6:D7:D8 (S) WIXOM RD .......................................................D8:D9:D10:D11:D12:D13:D14:D15 WIXOM TECH DR ............................................................................................. D11:E11 WOODBINE CT............................................................................................................G6 WOODBRIDGE CT ......................................................................................................G4 WOODBRIDGE LN......................................................................................................G4 WOODLAND ST ..........................................................................................................G9 WOODVIEW DR .......................................................................................................... B2 WREN ST....................................................................................................................... F4 WRIGHT ST .............................................................................................................E7:E8

X

Y YORICK PATH ...................................................................................................... H5:H6

Z

PARKS GILBERT WILLIS PARK ............................................................................................. F1 GUNNAR METALLA PARK......................................................................................G7 GIBSON PARK .............................................................................................................C9 MACK PARK ................................................................................................................D8 TOT LOT – CIVIC CENTER........................................................................................ E9 WIXOM HABITAT.......................................................................................................C5

APARTMENTS SUSANNE MANOR .................................................................................................... E8 TOWN & COUNTRY................................................................................................... E8 BRISTOL SQUARE...................................................................................................... H8 GOLDEN GATE ...........................................................................................................G8 STONE RIDGE.............................................................................................................. F9 VILLAGE .......................................................................................................................G9 HILLSIDE ...................................................................................................................... F9 MEADOWWOOD...................................................................................................... B15

CONDOS

NATURE'S COVE........................................................................................................ H5 MAPLE FOREST COURTYARDS CONDOS............................................................G6 MAPLE FOREST CONDOS ........................................................................................G6 HAMLET VILLAGE.................................................................................................... H6 SHIRE OF HAMLET VILLAGE..................................................................................G6 WIXOM MEADOWS ................................................................................................. B15

CO-OPERATIVES HELFER LEISURE...................................................................................................... B15 MAPLE NORTH.......................................................................................................... H5

COMMERCIAL / INDUSTRIAL PARKS GRAND OAK COMMERCE........................................................................................17 BECK-TEC ......................................................................................................................18 OAK CREEK CORPORATE.........................................................................................19 WIXOM WEST TECH ...................................................................................................20 BECK WEST CORPORATE..........................................................................................21 GRAND NAPIER INDUSTRIAL.................................................................................22 CENTURY INDUSTRIAL.............................................................................................23 LYNN CORPORATE PARK ........................................................................................24 ENTERPRISE BUSINES PARK....................................................................................25 NACCARATO INDUSTRIAL PARK..........................................................................26 ALPHA INDUSTRIAL PARK......................................................................................27 BECK BUSINESS CENTER ..........................................................................................28 BECK NORTH ...............................................................................................................29 WIXOM BUSINESS CENTER ......................................................................................30 WIXOM INDUSTRIAL PARK .....................................................................................31

165

CITY OF WIXOMCounty of Oakland, State of Michigan

Unlimited Tax General Obligation Water Bonds, Series 2001, dated 12/1/01, orig. amt. $1,335,000, CUSIP # DP7 to EG6

Limited Tax General Obligation Capital Improvement Bonds, dated 3/1/05, orig. amt. $5,750,000, CUSIP # ET8 to FM2

2009 Refunding Bonds, dated 9/30/09, orig. amt. $3,220,000, CUSIP # FP5 to FN0

ANNUAL DISCLOSURE DOCUMENT(Due by December 31 annually; FYE 6-30)

HISTORY OF TAXABLE VALUE

Industrial DDA/LDFATotal Facilities Tax Captured

Year Taxable Value FULL Valuation Total Valuation Valuation Net Valuation Change2011 $690,277,680 $12,356,660 $702,634,340 $11,682,080 $690,952,260 -7.81%2010 $748,760,880 $14,123,000 $762,883,880 $13,392,440 $749,491,440 -11.58%2009 $853,931,820 $11,038,460 $864,970,280 $17,274,750 $847,695,530 -3.32%2008 $878,809,750 $14,044,580 $892,854,330 $16,029,860 $876,824,470 -6.88%2007 $925,973,530 $30,527,070 $956,500,600 $14,882,760 $941,617,840 6.17%

Source: Oakland County Equalization Dept., and DDA/LDFA comes from City of Wixom

TAX BASE COMPOSITION

2011 Percent 2011 PercentBy Class Taxable Value of Total S.E.V. of TotalReal Property $572,458,550 82.93% $581,667,080 83.16%Personal Property 117,819,130 17.07% 117,819,130 16.84%TOTAL $690,277,680 100.00% $699,486,210 100.00%

By UseCommercial $214,000,170 31.00% $218,806,380 31.28%Industrial $96,153,260 13.93% $99,114,090 14.17%Residential $262,305,120 38.00% $263,746,610 37.71%Personal Commercial $50,344,860 7.29% $50,344,860 7.20%Personal Industrial $50,007,450 7.24% $50,007,450 7.15%Personal/Utility $17,466,820 2.53% $17,466,820 2.50%TOTAL $690,277,680 100.00% $699,486,210 100.00%

Source: Oakland County Equalization Dept

MAJOR TAXPAYERS

2011 2011 TV & IFTTaxpayer Product/Service AdValorem T.V. FULL IFT Value TOTAL Value

Edward Rose & Sons Apartments $14,876,780 $0 $14,876,780Ford Motor Company Motor vehicles $13,505,930 $289,240 $13,505,930Occidental Development, Ltd Development $12,761,970 $0 $12,761,970General Motor Corp. Automotive $9,032,890 $0 $9,032,890US Real Property LLC Industrial $8,330,360 $0 $8,330,360International Transmissions Transmissions $7,944,130 $0 $7,944,130Meijer's Retail store $7,713,980 $0 $7,713,980Beck Business Center, Inc. Commercial $7,647,770 $0 $7,647,770Detroit Edison Utility $7,131,900 $0 $7,131,900Wixkix Properties LLC Recreational $4,782,060 $0 $4,782,060TOTAL $93,727,770 $289,240 $93,727,7702011 Taxable Value $690,277,680 $12,356,660 $702,634,340Top 10 Taxpayers as a % of Taxable Value and Total Valuation 13.58% 13.34%

Source: City of Wixom Assessor's Office

CUSIP #s: 977493 See above for Issue Numbers

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TAX RATES

Tax Major Roads/ Fire &Year Operating Water Debt Civic Center Library * Bike Path Local Roads Debt DPW Bldg. Total2011 7.5429 1.3997 0.0000 1.0800 0.3000 1.1314 0.8539 0.4344 12.74232010 7.5429 1.2310 0.0000 1.0800 0.3000 1.1314 1.0870 0.3700 12.74232009 6.7320 1.3020 0.0000 1.0800 0.3000 1.1314 1.0420 0.3440 11.93142008 6.7320 1.2130 0.2150 1.0800 0.0000 1.1314 0.9400 0.3200 11.63142007 6.7320 1.2130 0.3600 1.0800 0.0000 1.1314 0.9400 0.2800 11.7364

The maximum charter operating tax rate is 8.00 mills.* The Library became a separate entity on November 7, 2006, as voted by the residents of the City of Wixom.Source: City of Wixom

TAX RATE LIMITATION

Section 11.5 of the City Charter provides tax rate limitations as follows:2011

Rate per $1000 of Amount afterPurpose Taxable Valuation Headlee Rollback

General Operating 8.00 7.5429

The City has the authority to levy taxes in excess of the above limitations pursuant to state law for the following purposes:

Rate per $1000 ofPurpose Authority State Equalized Valuation

Refuse Collection and Disposal Act 298, P.A. of Michigan 1917, as amended $3.00Police & Fire Pension Requirements Act 345, P.A. of Michigan 1937, as amended $2.00

Source: City of WixomTAX LEVIES AND COLLECTIONS

Levy Collections to March 1stYear Tax Levy Dollar Amt. Percentage2010 $9,441,776 $9,037,730 95.72%2009 $10,117,491 $9,541,162 94.30%2008 $10,156,335 $9,615,926 94.68%2007 $10,941,562 $10,644,479 97.28%2006 $10,217,362 $9,947,133 97.36%

Source: City of Wixom

REVENUES FROM THE STATE OF MICHIGAN RETIREMENT PLAN:

Fiscal Year State Revenue * Fiscal Year

Ended 6/30 Sharing Payments Ended 6/30 Contribution 2011 933,324 2011 $895,3242010 926,892 2010 $737,4082009 1,057,834 2009 $736,1782008 1,086,221 2008 $712,5512007 1,100,331 2007 $662,106

* The annual revenue sharing payments and other monies received by the City. Source: Audited financial statementsSource: City of Wixom

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LABOR FORCE:

No. of Contract Employees Employees Bargaining Unit Exp. DateClerical 8 Government Employees Labor Council of MI 06/30/2014Police Officers & Technicians 14 Police Officers Labor Council 06/30/2014Superintendents/Sergeants/ 6 Police Officers Labor Council 06/30/2014 Records SupervisorDPW Local 2720 7 AFSCME 06/30/2014DPW Local 1917 2 AFSCME 06/30/2014Non-Affiliated 18 Non-Affiliated n/aTOTAL STAFF 55


DEBT STATEMENT

DIRECT DEBT Amount AmountBonds Outstanding OutstandingDated Description 6/30/2011 12/14/2011

General Obligation Bonds:09/29/98 MI Bond Bank - Water, UT 1,850,000 1,657,00004/01/99 MI Bond Bank - Water, UT 3,170,000 2,850,00003/30/00 MI Bond Bank - Water, UT 3,713,000 3,343,00012/01/01 Water, UT 760,000 760,00003/01/05 Capital Improvement (developmen 5,400,000 5,400,000

9/30/2009 * Refunding, UT 2,720,000 2,720,000NET DIRECT DEBT $17,613,000 $16,730,000

INDIRECT DEBT10/1/2005 Drain, Tribute, LT 2,205,000 2,205,000

NET INDIRECT DEBT $2,205,000 $2,205,000NET DIRECT AND INDIRECT DEBT $19,818,000 $18,935,000

OVERLAPPING DEBTAmount 6/30/2011 Amount 12/14/2011

Percent Municipality Outstanding City's Share Percent Outstanding City's Share 0.14% Novi S/D $110,305,000 $154,427 0.16% $110,305,000 $176,4882.80% South Lyon S/D 176,545,000 4,943,260 2.59% 180,420,000 $4,672,878

14.96% Walled Lake S/D 140,345,000 20,995,612 15.37% 140,345,000 $21,571,0271.34% Oakland County 97,306,733 1,303,910 1.35% 91,921,359 $1,240,9381.34% Oakland ISD 62,379,412 835,884 1.36% 63,250,000 $860,2001.35% Oakland CC 5,075,000 68,513 1.36% 5,075,000 $69,020

NET OVERLAPPING DEBT $28,301,606 $28,590,551

NET DIRECT, INDIRECT AND OVERLAPPING DEBT $48,119,606 $47,525,551Source: Municipal Advisory Council of Michigan

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LEGAL DEBT MARGIN

6/30/2010 10/14/2011State Equalized Value -- 2011 $699,486,210 $699,486,210Equivalent IFT Value -- 2011 6,178,330 6,178,330Total Valuation $705,664,540 $705,664,540Debt Limit - 10% of SEV & Equivalent IFT Value $70,566,454 $70,566,454Amount of Direct Debt $17,613,000 $16,730,000 Less: Revenue Bonds 0 0Net Direct Debt (17,613,000) (16,730,000)

LEGAL DEBT MARGIN $52,953,454 $53,836,454

GENERAL FUND BUDGET SUMMARY

BUDGETED 2011/12Revenues $9,318,456Expenditures 8,958,676Revenues over (under) Expenditures $359,780 Less: Capital Contributions or Transfers 359,780Net Excess Revenues over (under) Expenses $0Fund Balance -- July 1, 2011 1,578,320Projected Fund Balance -- June 30, 2012 $1,578,320


SCHEDULE OF BOND MATURITIES

As of December 14, 2011 General Revenue Authority Percentage

Year Obligation Bonds Bonds Bonds Total Payoff 2012 1,998,000 0 0 1,998,0002013 2,047,000 0 0 2,047,0002014 2,077,000 0 0 2,077,0002015 1,557,000 0 0 1,557,000 45.90%2016 1,352,000 0 0 1,352,0002017 1,407,000 0 0 1,407,0002018 1,451,000 0 0 1,451,0002019 1,416,000 0 0 1,416,0002020 435,000 0 0 435,000 82.13%2021 375,000 0 0 375,0002022 400,000 0 0 400,0002023 420,000 0 0 420,0002024 445,000 0 0 445,0002025 450,000 0 0 450,0002026 450,000 0 0 450,0002027 450,000 0 0 450,000 100.00%

$16,730,000 $0 $0 $16,730,000

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Report to the City Council

June 30, 2011

December 13, 2011

To the City Council City of Wixom, Michigan

We have audited the financial statements of the City of Wixom (the “City”) as of and for the year ended June 30, 2011 and have issued our report thereon dated December 13, 2011. Professional standards require that we provide you with the following information related to our audit which is divided into the following sections:

Section 1 - Report on Internal Control Over Financial Reporting

Section II - Results of the Audit

Section III - Suggestions and Other Legislative and Informational Items

This report is intended solely for the use of the City Council and management of the City of Wixom, Michigan and is not intended to be and should not be used by anyone other than these specified parties.

We would like to take this opportunity to thank the City’s staff for the cooperation and courtesy extended to us during our audit. Their assistance and professionalism are invaluable. We welcome any questions you may have regarding the following communications and we would be willing to discuss any of these or other questions that you might have at your convenience.

Very truly yours,

Plante & Moran, PLLC

Joseph C. Heffernan

Brian J. Camiller

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Section I - Report on Internal Control Over Financial Reporting

Management of the City is responsible for establishing and maintaining effective internal control over financial reporting, including accurate and reliable accounting records that do not include errors of any consequence. In planning and performing our audit, we considered the City of Wixom's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the entity's internal control over financial reporting.

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described below, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. We consider the following deficiency to be a material weakness:

• During the audit, we identified some adjustments to the accounting records. All items were addressed by the City, and the published financial statements include all appropriate corrections. During the course of our audit, we identified the following potential errors in the accounting records: o The calculation of estimated tax refunds seemed inconsistent with the recent level of

refunds granted. o Calculation of the retiree healthcare liability was inconsistent with the provisions of

GASB 45. o The deferred revenue from the Tribute drain special assessment seemed not to have

been re-evaluated at the government-wide level to take the current year assessment refund into consideration.

o Recorded accounts payable seemed to exclude several smaller invoices that related to goods or services received prior to June 30, 2011. Our sample of 28 invoices identified four that we believed were improperly excluded from accounts payable.

The first three bullets all relate to new or emerging accounting issues. The fourth bullet, accounts payable, has not been an issue in prior years, and we anticipate that this was an isolated instance. There was a potential for errors to go undetected in the annual financial statements.

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However, all above items were identified and corrected in the published financial statements. In closing the books each year, it may be appropriate to perform a risk assessment of new or emerging accounting issues to identify where more time should be allocated in the closing process. We would be happy to participate with the City in such an evaluation before next year’s audit.

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Section II - Results of the Audit

Our Responsibility Under U.S. Generally Accepted Auditing Standards

As stated in our engagement letter dated October 4, 2011, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement.

As part of our audit, we considered the internal control of the City of Wixom. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters.

Other Information in Documents Containing Audited Financial Statements

Our responsibility for other information in documents containing the entity’s financial statements and report does not extend beyond the financial information identified in the transmittal letter, statistical section, community profile, and the annual disclosure document. We do not have an obligation to perform any procedures to corroborate other information contained in these documents. We read these documents and nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information or manner of its presentation appearing in the financial statements.

Planned Scope and Timing of the Audit

We performed the audit according to the planned scope and timing previously communicated to you in our meeting about planning matters on October 6, 2011.

Significant Audit Findings

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City of Wixom are described in Note 1 to the financial statements.

As described in Notes 1 and 15, the government changed accounting policies related to intangible assets by adopting Governmental Accounting Standards Board (GASB) No. 54, Fund Balance Reporting and Governmental Fund-type Definitions.

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Accordingly, the City’s fund balance classifications in the governmental fund financial statements have been changed to reflect the five new classifications of GASB Statement No. 54.

We noted no transactions entered into by the government during the year for which there is a lack of authoritative guidance or consensus.

There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.

The most sensitive estimate affecting the financial statements was the other postemployment benefit obligation. Management’s estimate of the other postemployment benefit obligation is based on the alternate valuation method. We evaluated the key factors and assumptions used to develop the other postemployment benefit obligation recorded and determined that the estimate is reasonable in relation to the financial statements taken as a whole.

The disclosures in the financial statements are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit

During the audit of the accounts payable cycle, we identified several disbursements made and recorded in July 2011 that should have been accrued as of June 30, 2011. We discussed the issue with City personnel who investigated and corrected the oversight. We encountered no other significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements.

Disagreements with Management

For the purpose of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated December 13, 2011.

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Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the government’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

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Section III - Suggestions and Other Legislative and Informational Items

Budgetary Stress

The City has continued to experience a steady decline in its major revenue sources. Specifically:

• Property taxes have declined due to decreases in taxable value. After decades of relatively dependable inflationary increases, taxable value dropped 12 percent for its July 1, 2010 tax billings and another 7 percent for the July 1, 2011 tax billings. Right now, no one can predict with certainty when the erosion of taxable value will end.

• State-shared revenue has been on a steady decline since 2001, as the State uses it to balance its own budget. From 2001 to 2011, the City’s portion of state-shared revenue declined 33 percent. In 2012, the statutory portion of revenue sharing will decline an additional one-third.

• Interest income has declined approximately 90 percent since 2007.

• Building permits and related revenue, although showing signs of improvement in 2011, have declined significantly since 2007.

To offset the declines in revenue, the City has continued to diligently make decisions to contain costs to the extent possible. These initiatives include a compressed work week, a reduced workforce, modifications to fringe benefit packages, moving new hires to defined contribution plans, and others. A more extensive summary of the various program changes can be found in the transmittal section of the City’s comprehensive annual financial report (CAFR).

We would like to commend the City for the actions taken to date. These are difficult decisions to make, since they impact employees as well as service levels that residents have come to expect. Unfortunately, the taxable value continues to decline and we anticipate that additional cost reductions will continue to be necessary in subsequent years.

Impact of Census Results on State-shared Revenue

The 2010 census data was released on March 22, 2011. Census results indicated an overall decline in population for the state of Michigan of 0.6 percent. For Wixom, the population increased 1.8 percent, from 13,263 to 13,498.

As a result of the slight population increase, the impact of the census on the City of Wixom was a retroactive positive addition of $13,483 to the constitutional portion of the June 2011 receipt. Unfortunately, the State offset that with a $19,417 reduction to the statutory portion of the August 2011 receipt. Going forward, the increase in population will have a positive impact on constitutional revenue-sharing receipts for the City. As noted below, statutory revenue sharing has been replaced with the Economic Vitality Incentive Program (EVIP) and has essentially been reduced by one-third. The revenue the City will potentially earn under this new program is $49,600.

State Initiatives Impacting Local Units of Government

Governor Snyder has begun his tenure with several significant initiatives, and he is moving his agenda forward at a quick pace.

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One of these initiatives is to improve the transparency and efficiency of local units - cities, townships, villages, and counties. More specifically, his current local government initiatives include:

• Replace “statutory revenue sharing” with a newly named “Economic Vitality Incentive Program” that will be reduced by approximately 1/3 and require local units to compete for the remaining $200 million by demonstrating best practices in the following areas:

o Transparency - Provide more accessible financial information to citizens

o Service sharing - Consolidation or collaboration with other units of government

o Employee benefits - Slimmed-down pension and healthcare benefits

• Significantly strengthening the powers of emergency managers

• Changes to Act 312, police and fire arbitration

• Potential changes to the Urban Cooperation Act

• Potential elimination of personal property taxes

Each of these initiatives could have an impact on the City of Wixom and will be discussed in more detail below.

Accountability and Transparency

In order to “earn” the first one-third of the EVIP funding, each qualified unit was required to produce a “citizen’s guide” to its finances and a performance “dashboard” by October 1, 2011. The City of Wixom opted to prepare a Popular Annual Financial Report (PAFR) instead of a citizen’s guide, as was allowed by the State.

We are happy to report that the City of Wixom prepared and submitted both of its transparency tools before the October 1 deadline, thus resulting in guaranteed receipt of this portion of the EVIP funding. These documents are available to view on the City’s website.

Service Sharing and Consolidation

In order to “earn” the second one-third of the EVIP funding, the State is requiring local units to submit a report that identifies the existing cost sharing or consolidation arrangements in which the City is currently participating, with an estimate of the annual savings realized from these arrangements, as well as a plan for increasing the sharing of services with other governments, or consolidation of services, in the future. This report is due to the State by January 1, 2012. At this time, communities are required to certify that they have plans that they intend to implement, but actual new sharing agreements do not need to be in place by January 1, 2012. Employee Compensation Best Practices

In order to “earn” the third and final one-third of the EVIP funding, the State is requiring local units to submit a written plan for adjusting employee compensation for new, modified, or extended employee contracts entered into after May 1, 2012. Such contracts would be subject to the following criteria:

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a) Placing all new hires in a defined contribution plan or a hybrid retirement plan that caps annual employer contributions at 10 percent of base salary

b) Where applicable, a 1.5 percent multiplier should be used to determine employee pensions. A 2 percent multiplier should be used for employees who are not eligible for Social Security benefits.

c) Implementing controls to avoid pension spiking such as using a three-year salary average that does not include more than a total of 240 hours of paid leave and overtime to determine benefit levels

d) If health care is offered, all new hires must be on an 80/20 employer to employee healthcare premium split.

The local unit must certify it has this plan in place by May 1, 2012.

Other Legislative Developments

Employee Healthcare Contributions - Public Act 152

Senate Bill 7 (now PA 152 of 2011), the "Publicly Funded Health Insurance Contribution Act," was signed into law by the governor in late September 2011. This new law requires all public employers to place hard caps on the amounts they contribute toward health care with an option to elect an 80 percent contribution cap rather than a hard cap. There is also an option for the local unit to opt out entirely.

PA 152 would limit annual costs for medical benefit plans to the following: • $5,500 for single coverage • $11,000 for individual and spousal coverage • $15,000 for family coverage

Alternatively, given a majority vote of its governing bodies, a public employer can opt out of the hard cap and into an 80 percent contribution cap. Under this option, public employers would pay no more than 80 percent of the total annual costs for all of the medical benefit plans it offers or contributed to for its employees and elected public officials. This option would require that publically elected officials would have to pay 20 percent or more of the total annual costs of that plan, but the employee's share of the costs could be allocated as the government sees fit. This act also contains a complete opt-out provision, with a 2/3 vote of the governing body.

These limits would apply once contracts expire or for the healthcare benefit year that begins on or after January 1, 2012. The City of Wixom has a medical benefits plan coverage year of July 1 through June 30. There is significant confusion as to whether the decision to opt out of the hard caps listed above would have to be made by December 31, 2011 or by June 30, 2012 (the day before your benefit year begins). As a result, we believe it would be prudent for the City to consider a six-month 2/3 resolution to opt out in order to give the City an opportunity to evaluate which benefit plan options are most appropriate for both the City and its employees. We believe this is a good solution, because this retains the option to move to the 80/20 sharing, or any other appropriate plan.

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Failure to comply with the provisions in this act will result in a 10 percent reduction in each EVIP payment for the period of noncompliance. Opting out by a 2/3 vote of the governing body under the provisions of this act is not considered failure to comply.

Retro-Pay Prohibition - Public Act 54

Public Act 54 of 2011, which was signed by the governor on June 7, prohibits retroactive pay on an expired contract and calls for employees working under an expired agreement to bear the cost of any increased healthcare costs until a new contract is in effect. During that period, the public employer is authorized to make payroll deductions necessary to pay the increased cost of maintaining those benefits. This act was ordered to take effect immediately.

Emergency Managers - Public Act 4 of 2011

On March 16, 2011, PA 4, Local Government and School District Fiscal Accountability Act, was signed into law. This act repeals Public Act 72 of 1990, the previous Local Government Fiscal Responsibility Act. Under the new act, the state treasurer can conduct a preliminary review to determine the existence of a local government financial problem if one or more of 18 different “triggering events” occur. Some of these events are truly a sign of financial stress, such as incurring payless paydays or defaulting on a bond or note payment. Others are more subjective, including a blanket statement that the existence of “other facts or circumstances…as determined by the state treasurer” is sufficient to start the process.

If a finding of probable financial stress is made, the governor shall appoint a review team. The team would conduct its review and report back to the governor and state treasurer within 60 days of its appointment. Depending on the severity of the findings during the review, the actions then taken could range from none to a declaration of a financial emergency, the local unit would be placed in receivership, and an Emergency Manager (EM) appointed in place of the existing governing body and chief administrative officer.

For communities that have some of the triggers but seem to have a plan to address them, there is an in-between step whereby a consent agreement is entered into and monitored.

Clearly, this legislation is causing great anxiety in terms of both the uncertainty as to how aggressive the State will be in implementing the legislation as well the broadness of the powers granted to an EM. Any new EMs would have the authority to reject, modify, or terminate the terms of an existing contract or collective bargaining agreement.

This legislation may ultimately change the tenor of future union negotiations, in that it gives the collective bargaining representatives a strong incentive to work with the City to avoid receivership by an EM.

Changes to Act 312 - Police and Fire Arbitration

Public Act 312 prohibited public police and fire department employees from the right to strike. Whenever contracts are not resolved, the employees or employer may initiate binding arbitration in lieu of striking. The arbitrator’s decision is final and binding upon the parties involved.

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The governor has called for reforming Act 312 of 1969, the Police and Fire Arbitration Act. In July 2011, Public Act 116 of 2011 was signed into law and contains the following provisions:

• A stronger consideration of a community’s ability to pay • Internal salary and benefit comparisons • Reducing the timeframe of the process to no more than 180 days

Senate Bill 34 - Elimination of the Personal Property Tax

On January 19, 2011, SB 34 was introduced. Very simply, this bill, if it becomes law, will amend PA 206 of 1893 and exempt all personal property from the collection of taxes. Altogether, this would reduce revenue for communities across the State by approximately $770 million. Including the school districts, the lost revenue would be over $1 billion. This bill does not provide any source of revenue to replace that which is lost.

Obviously, this would be devastating to many communities as personal property taxes are a significant component of a local unit’s tax structure. The elimination of the personal property tax was not included in the State’s 2012 budget; however, since that time, the topic has received much focus by the legislature. The City of Wixom’s personal property tax currently brings in approximately $1,500,000 annually.

Proposed Amendments to the Urban Cooperation Act and Related Statutes

Various house and senate bills intend to amend the numerous statutes that govern local unit service sharing. These bills eliminate certain guarantees and provisions of collectively bargained agreements. The problem in trying to form new collaborative ventures is that the existing act includes a clause that prevents the immediate negotiation of new contracts. This stands in the way of even the consideration of mergers by many local units because the new entity is hampered by a multi-layer set of work rules, wages, and benefits which effectively eliminate the economic efficiencies that are the very reason to consolidate. Under the amended act, management and employees should be allowed to immediately begin the collective bargaining process for the new entity and complete this within an appropriate timeframe.

The bills are still a work in progress; however, passage is expected. Water and Sewer Master Plan

The City’s Sewer Fund is currently able to charge less for its services than its actual current costs. This is a result of a large surplus created by historical tap-in fees that exceeded expectations. As discussed with you previously, we can see that the sewer rates will need to be adjusted upward at some point in the future to come into balance with its costs. In order to avoid the need for a radical rate adjustment at some time in the future, we recommend that the City create a financial master plan for the water and sewer system, which would involve estimating the amount of working capital necessary to sustain necessary repairs and replacements to the system, and a model that would increase rates gradually to hold the funds’ working capital above the recommended amounts.

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Our understanding is that the City has already begun raising the sewer rates. In addition, it is in the process of hiring a consultant for a master plan. We anticipate that this analysis will provide information to help you determine the need for future rate increases.

CAFR FY 2011

Documents

Transcript of CAFR FY 2011