25LINKBUDGET(FULL) - Flipbook - Page 26
City of Plymouth 2024 / 2025 Budget
amounts to $31,955,838, nearly three times the General Fund budget alone. Another
noteworthy point, less conspicuous in the budget's detailed breakdown but highlighted on
page 25, is the allocation of $6,846,614 toward capital outlay projects and debt service for
earlier capital projects during the fiscal year 2024/2025.
Since 1997, the City has issued $50,674,579 in various forms of bonds to finance and refinance
infrastructure construction and other major capital projects. Additionally, the City has
secured an additional $3,249,076 in Act 99 loans or equipment leases for significant
equipment acquisitions during that period. Such extensive borrowing might raise concerns
with bond rating agencies. However, the City's practice of maintaining relatively short
durations for most bond issues, typically ten years or less, and consistently allocating
substantial amounts for debt retirement - exceeding $2 million annually over the past five
years, as well as in the current and upcoming fiscal years - mitigates potential red flags.
As emphasized in other sections of this budget, a primary objective of the administration is to
maintain all current City services at a high standard of quality. Our aim is not to reduce
services or compromise their quality in pursuit of a balanced budget at the expense of citizen
well-being. Consequently, our approach has consistently focused on exploring revenue
solutions to budgetary challenges. This entails leveraging existing and new state revenue
programs, as well as regularly assessing and adjusting local fees and service charges as
needed and appropriate.
This executive summary has focused on the changes to state shared funding resulting from
executive orders and legislation, with the expectation of receiving positive assistance from
the state. Readers are encouraged to refer to two specific pages for detailed information: page
26, illustrating the General Fund's fund balance history, and page 56, displaying the history
of state revenue sharing receipts.
It is notable that the City's General Fund balance experienced a significant decline in fiscal
year 2010/11, following a similarly large drop in state shared revenues in fiscal year 2009/10.
Despite ten years of payments under the EVIP and later CVTRS programs, the projected
statutory allocations from the state remain notably lower than the levels observed in the
2008/09 fiscal year, standing at only 80% of the distributions during the peak year of 2000/01.
Had the state maintained statutory sales tax distributions to local governments at the levels
seen in 2000/01, the City's annual General Fund budget would have approximately $740,996
in additional revenue. Since fiscal year 2001/02, the loss of statutory distributions from the
state has amounted to more than $11 million through the 2023/24 fiscal year. The proposed
2024/25 budget entails only a two percent increase in state revenue sharing.
This single revenue source, even if only half-funded by the state, could have addressed
numerous fiscal challenges the City has faced over the past 15 years. From financing capital
outlay projects to supporting police services and aiding in the reduction of legacy costs, its
potential impact on the City's financial stability cannot be overstated.
Included in the appendices with the budget are a glossary and various financial policies,
along with copies of the City’s financial dashboard and the Citizen’s Guide to Financial Health
for the City of Plymouth, as well as corresponding state documents.
Furthermore, the City of Plymouth, like every other township, village, and city in the state, is
required to annually file the “F65 Report – Local Unit Fiscal Report.” A copy of the most recently
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