Budget for Website - Flipbook - Page 53
State-Shared Revenues
Each local governmental unit receives a share of certain state-collected revenues, as
provided for in the Michigan Constitution. For the City of Plymouth, these revenues include a
local share of state sales tax, gas and weight taxes (Act 51), City-Village-Township Revenue
Sharing (CVTRS), liquor license fees, and election reimbursements. Together, these revenues
support essential City services and infrastructure. Additionally, Neighborhood Road Funding
(NRF) is anticipated to begin in FY 2026/27.
Distributions of state sales tax and gas and weight taxes are based on formulas that consider:
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Population: 9,370 (2020 Census)
Street Miles: 8.97 major street miles and 23.29 local street miles
Urban Road Factor: 1.1 for the City of Plymouth
Changes in population directly impact both constitutional revenue sharing and Act 51
distributions through the next census cycle in 2030.
State-shared revenues remain the City’s second-largest source of General Fund revenue,
though their composition and impact can vary from year to year. For FY 2026/27, constitutional
revenue sharing is projected to decrease by approximately $200,000, CVTRS is expected to
remain largely unchanged, and Gas and Weight Tax (Act 51) revenue is anticipated to
increase by about $1 million. While some sources, such as constitutional and CVTRS
payments, may be stable or decline, restricted revenues like gas and weight taxes provide
critical support for infrastructure and roadway maintenance.
Breakdown of State-Shared Revenues
a. Constitutional Revenue Sharing: The largest and most stable component of state-shared
revenue, derived from 15% of the 4% portion of the State’s 6% sales tax. Payments are made
primarily based on population and are distributed six times per year. This funding provides
a predictable base for general municipal operations. The estimated revenue for FY 2026/27
is approximately $970,400.
b. City, Village, Township Revenue Sharing (CVTRS): A statutory payment appropriated
annually by the State Legislature. Unlike constitutional revenue sharing, CVTRS is
discretionary and contingent on state budget decisions. Payments require the City to meet
accountability and transparency standards, including public financial reporting and longterm planning. The estimated revenue for FY 2026/27 is approximately $151,200.
c. CVTRS Supplemental Payments: An additional discretionary payment authorized through
the state budget process. While relatively small, it supplements the base CVTRS distribution
and is not guaranteed each year. The estimated revenue for FY 2026/27 is approximately
$12,700.
City of Plymouth 2026/27 Budget
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