State of Michigan Economic Vitality Incentive Program
Michigan Public Act 63 of 2011 introduced the Economic Vitality Incentive Program (EVIP) as a component of the State Shared Revenue Program. EVIP has three components that eligible municipalities currently report on.
Requirement 1: Accountability and Transparency
Communities must have a Citizen's Guide, Performance Dashboard and a Projected Budget Report. The projected budget report must include at a minimum the current fiscal year and a projection for the immediately following fiscal year. It shall also include revenues and expenditures, a detailed listing of its debt service requirements and an explanation of the assumptions used for the projections.
In July 2011 the Local Audit and Finance Division, Bureau of Local Government Services of the State of Michigan provided guidance on preparing a Citizens' Guide and Performance Dashboard to meet part of the provisions of the Economic Vitality Incentive Program. The City may use their Popular Annual Financial Report (refer to the Government Finance Officers Association (GFOA) award program) as the Citizens' Guide, if it includes additional information about unfunded liabilities. You will find additional information related to unfunded liabilities and the Water and Wastewater Utility Funds.
Requirement 2: Consolidation of Services
Communities must prepare a consolidation plan with proposals on how to increase existing levels of cooperation, collaboration and consolidation. The report must include past efforts in collaboration along with estimated cost savings and potential future savings.
Requirement 3: Employee Compensation
Communities must certify that they intend to implement certain changes to the employee compensation packages. These changes will include any employment contracts for any new, modified or extended contract.