25LINKBUDGET(FULL) - Flipbook - Page 30
City of Plymouth 2024 / 2025 Budget
projected deficits for fiscal year 2009/10. Despite these challenges, diligent efforts reduced
the projected deficit from $942,640 to $147,934 by 2012/13. Although the 2013/14 budget
initially eliminated deficits, subsequent amendments left projection years still in deficit,
pending further review.
Despite ongoing revenue challenges, the City Administration presented deficit-free budgets
for 2014/15 and 2015/16, reflecting notable improvements. However, escalating pension
costs prompted adjustments, with Option "B" providing relief in response to rising
contributions.
In April 2017, the City Commission reinstated the 1% tax administration fee, generating
additional revenue. The 2017/18 budget remained deficit-free, although projections for
2018/19 indicated potential deficits due to escalating legacy costs.
Legacy costs, exacerbated by MERS' revised assumptions, present a significant fiscal
challenge. Despite efforts to minimize deficits, future projections remain uncertain, with
property tax limitations under Proposal "A" further constraining revenue growth.
The City confronts challenges stemming from declining revenue streams and increasing
legacy costs, necessitating strategic planning to sustain services. Proposed measures have
included potential millage increases or operational adjustments to mitigate deficits.
Despite endeavors to stabilize finances, uncertainties persist regarding future revenues and
legacy costs. Continued vigilance and strategic planning are essential for ensuring the City's
long-term financial sustainability.
Fund Accounting
The accounts of the City are organized by funds and account groups, each of which are
considered a separate accounting entity. Funds are established to segregate specific
activities or objectives of a government in accordance with special regulations, restrictions
and limitations. The various funds are grouped into generic fund types in four broad fund
categories as follows:
General Fund – The General Fund receives revenues related to the general
operations of the City Government, and provides the general services of the City
Government, which are not required by law or City policy to be accounted for in
separate funds.
Special Revenue Funds – Special Revenue Funds are maintained to account for
specific revenue resources that are legally restricted to expenditures for specific
functions or activities. The legal restrictions may be imposed by state statute or
Constitution, City charter or City policy.
Component Unit Funds – Component Units Funds are funds of legally separate
organizations for which the elected officials of the agency are financially accountable.
Debt Service Funds – Debt Service Funds are established by state statute and bond
covenants to account for the recording of the collection and expenditures of resources
earmarked for the retirement of debt issued directly by the City.
25BINTRO-04B-ES.DOCX
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