25LINKBUDGET(FULL) - Flipbook - Page 59
City of Plymouth 2024 / 2025 Budget
State-Shared Revenues
Each local governmental unit receives a share of certain state-collected revenues, as
provided for in the Michigan Constitution. This includes a local share of sales tax and gas &
weight taxes. Until 2011, an additional share of sales tax was also provided by state statute.
However, in 2010, the statutory portion of the sales tax was eliminated in favor of a "best
practices" incentive program, initially known as EVIP – Economic Vitality Incentive Program.
This program encourages municipalities to consolidate services to reduce redundancy and
excess expenses in providing public services.
For the fiscal year 2014/15, the program name was changed to City-Village-Township
Revenue Sharing, abbreviated as CVTRS. Additionally, constitutional distributions of sales tax
to the City’s General Fund and gas and weight taxes to the City’s Major and Local Street Funds
are significantly affected each decade by new census counts. In the case of the City of
Plymouth, both of these major returns of tax revenues slightly increased as a result of the 2020
census.
The City’s population had declined over several decades from a high of more than 11,000 in
1950. The population count for 1990 was 9,560, for 2000 was 9,022, and for 2010 was 9,132,
marking a 1.2% increase over the 2000 count, the first increase since 1950. The City’s
population again increased with the 2020 census to 9,370, which represented a 2.6% increase
over the 2010 count and a 3.8% increase from the 2000 count.
State sales tax revenues and gas and weight tax revenues are distributed by formulas which
use the following factors:
1.
Population - 9,370 for the City of Plymouth (2020 census)
2.
Street miles - 8.97 major street miles and 23.32 local street miles in the City of
Plymouth
3.
Urban Road Factor - this is a factor which increases in proportion to population,
from 1.0 for cities and villages fewer than 2,000 to 2.0 for cities and villages
between 160,001 and 320,000 (and 2.6 for Detroit). The factor for the City of
Plymouth is 1.1.
The change in population resulting from the 2020 census directly impacts both the
constitutional share of the sales tax and the distribution of gas and weight taxes in future
budgets until the next census occurs in 2030.
Originally, the statutory portion of the sales tax formula included a factor related to
population. However, the downturn in the economy in late 2001 led to a series of executive
order budget cuts and the elimination of the original formulas. While constitutional sales tax
returns generally increased every year since 2000 until the economic downturn in the fall of
2008, statutory sales tax revenues consistently declined every year since 2000 until their
elimination. State shared revenue distributions in Plymouth ranged from a high of $1,201,740
in 2000/01 to a low of $664,722 for 2012/13. The EVIP program began in 2011/12. The
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