25LINKBUDGET(FULL) - Flipbook - Page 78
City of Plymouth 2024 / 2025 Budget
began internally financing street construction projects. Upon the completion of the approved
street projects 2019, it became apparent that due to diminishing reserves in the Local Street
Fund, the City faced a choice: either pause local street construction until revenue from gas
and weight tax replenished the reserves or seek voter approval for the continuation of the
street bond program. Following extensive deliberations throughout the summer of 2019
involving City staff and engineers, the City Commission, during its meeting on August 5, 2019,
approved a street bond ballot proposal to authorize the sale of up to $12 million in bonds for
street construction purposes.
On November 5, 2019, the electorate demonstrated their support for the City Street
Construction Program for the third time, with a vote tallying 1,028 YES to 723 NO—a margin
of 59% to 41%.
City Utility Line Replacement and County Roads
Mill Street, Sheldon Road, Ann Arbor Road, and the portion of Plymouth Road east of Mill Street
fall under the jurisdiction of Wayne County for maintenance. When repaving becomes
necessary, the county usually imposes a local share, which is funded either through available
bond construction funds or from the City's General Fund. As a result, property owners
residing on these streets receive similar treatment to those who have benefited from street
reconstruction over the past decade.
Water and Sewer Lines Replacement
Historically, the costs associated with replacing water and sewer utility lines have been
financed through either direct means, such as water and sewer rate increases, or indirectly
through the sale of revenue bonds. While the sale of revenue bonds incurs higher overall
expenses than direct funding, it allows for a more gradual increase in utility rates. Both
methods distribute costs among the users who benefit from the service. However, given the
substantial expenses associated with imminent improvements in the City, voter-approved
bonds or limited tax general obligations bonds would be more feasible.
Over the past 15 years, the City Administration has consistently recommended financing
utility improvements either directly through rates or through Limited-Tax General Obligation
(LTGO) bonds when deemed necessary or desirable by the City Commission as a matter of
policy. In 2012, bond rates experienced a significant decline, coinciding with the call dates
for all outstanding revenue bonds. Consequently, the City Administration advised refinancing
these bond issues, along with the 2003 LTGO capital improvement bonds, with a single LTGO
refunding bond. This move was projected to save approximately $274,000 in interest
expenses over the remaining lifespan of these original bond issues.
For the Fiscal Year 2024/25 budget proposal, the City has allocated $800,000 from excess
water and sewer funds to cover the costs of water and sewer line replacement, aligning with
the street construction initiatives.
The Existing Street Construction Program
Listed on the following pages are streets reconstructed during the construction program
initiated in 1997, as well as the subsequent voter-authorized continuations of the program.
Since its inception, the street construction program has proven to be one of the most effective
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