City of Plymouth Proposed 2022-2023 Budget - Flipbook - Page 230
City of Plymouth 2022 / 2023 Budget
09/20/2022
Headlee Amendment: As part of a 1978 amendment to the Michigan constitution, when the
annual growth on existing property is greater than the rate of inflation, a local unit's millage
rate is rolled back so the resulting growth in property tax revenue communitywide is the rate
of inflation. Units of government are now required to annually calculate a Headlee rollback
factor.
International City/County Management Association (ICMA): An association of
professional city and county managers and other employees who serve local governments.
Internal Service Fund: A fund used to account for operations that are financed and operated
in a manner similar to private business enterprises. These funds are used to account for the
financing of goods and services provided by one department to other departments within the
City.
Liability: Amounts owed for items received, services rendered, expenses incurred, assets
acquired, and construction performed, and/or amounts received but not as yet earned.
Long-Term Debt: Debt with a maturity of more than one year after the date of issuance.
Municipal Employee Retirement System (MERS): The Michigan Municipal Employees
Retirement System is a multiple employer statewide public employee retirement plan created
to provide retirement and survivor and disability benefits to local government employees.
Millage: The amount per $1,000 of property value that is used to calculate local property
taxes. Assigned millage rates are multiplied by the total taxable value of the property in order
to arrive at the property taxes.
Modified Accrual Basis: A basis of accounting where revenue is recorded when measurable
and available, and expenditures are recorded when a liability is incurred.
Obligations: Amounts which a government may be legally required to meet out of its
resources. They include actual liabilities and encumbrances not yet paid.
Other Post-Employment Benefits (O.P.E.B): Benefits, other than pensions, that a state or
local government employee receives as part of his or her package of retirement benefits. This
is typically healthcare coverage.
Proposal A: A constitutional amendment passed in 1994, Proposal “A” established “Taxable
Value” as the basis for the calculation of property taxes. Increases in Taxable Value (following
increases for additions and losses) are limited to the percent change in the rate of inflation or
5% whichever is less.
Revenues: Sources of income that finances the operations of government.
Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources
that are legally restricted to be expended for specified purposes.
23B-GLOSSARY
TABLE OF CONTENTS
APPENDIX A
