Lakeshore Trail Endowment

City of Muskegon sets up endowment for Lakeshore Trail

by Dave Alexander | The Muskegon Chronicle
Sunday July 26, 2009, 7:43 AM

Chronicle file photo
The Muskegon Lakeshore Trail, which runs along the southern shore of Muskegon Lake. The Muskegon City Commission hopes to raise more than $10,000 to establish the Lakeshore Trails Improvement Fund with the Community Foundation for Muskegon County.

MUSKEGON -- A couple bucks each from individual Muskegon city income tax refunds eventually could lead to a permanent endowment for long-term support of the Muskegon Lakeshore Trail.

The trail along the southern shore of Muskegon Lake is the subject of a potential new endowment fund in the Community Foundation for Muskegon County.

City officials are starting with a modest contribution of a little more than $2,500, but in the next few years the Muskegon City Commission hopes to raise more than $10,000 to establish the Lakeshore Trails Improvement Fund with the foundation.

The dollars come from the city's income tax, which offers taxpayers receiving a refund the opportunity to contribute it to one of three city-based charitable operations. Besides the Lakeshore Trail, city taxpayers last year had the opportunity to donate income tax refunds to the Muskegon Recreational Center and the downtown Muskegon Main Street organization.

Most refund money has gone to the trail, according to Finance Director Tim Paul. For tax years 2007 and 2008, 522 taxpayers voluntarily gave up their refunds to support the trail. That comes to an average refund of $4.94 -- modest but the city only has a 1 percent income tax for city residents and a 0.5 percent rate for nonresidents working in the city.

"It's nice to give to charities, but the real reason we have the donation option is for a cost savings for the city," Paul said. "It probably costs the city $20 to process a refund check that many times is just a couple of dollars."

The funds raised for the Muskegon Recreational Center and Muskegon Main Street go directly to those organizations, Paul said.

The Muskegon Recreational Center is an educational and recreational youth "drop-in" center at Smith-Ryerson Park, 550 Wood.

Muskegon Main Street is a development and promotional organization that is part of Muskegon Area First -- the local economic development agency. Main Street markets lots on the former Muskegon Mall property and promotes events such as the downtown Taste of Muskegon gathering in June.

Paul said the city didn't have a specific group to accept the Lakeshore Trail funds. The trail was developed over the past 15 years, and now includes more than 12 miles of nonmotorized paved trails for bicyclists and walkers.

"Down the road, we hope a 'friends of the trail' group develops," Paul said. "I think the Lakeshore Trail deserves such support. This is just a starting point."

The current trail tax refunds are being invested with the foundation. City officials hope that outside of donated tax refunds, those interested in supporting the maintenance and further development of the trail will give directly to the foundation, which would be a tax-deductible contribution.