Literature Review Summary
The literature review provided key insights into alternative funding sources. Both tax-
based and non-tax alternatives were identified. It was discovered that many local
governments have implemented nontraditional sources of revenue such as special
assessments, user fees, license and permit fees, inspection charges, subscription and
membership fees, cost recovery fees, and grants to offset some of the costs of providing
Definition of Terms
Ad-Valorem. In proportion to value.
Assessed Valuation. Market value of real property based on mass appraisal by a tax assessor.
Fire flow. Flow of water, in gallons per minute, required to extinguish a fire.
Insurance Services Office (ISO). A non-profit agency whose primary objective is to provide a
tool for the fire insurance industry to measure quantitatively the major elements of a
municipalities fire suppression system.
Millage. Percentage applied to Assessed Valuation of property for purposes of generating and
collecting tax revenues.
Michigan Municipal League (MML). An association of Michigan’s cities and villages. The
MML is a nonpartisan organization working through cooperative effort to strengthen the
quality of municipal government and administration by providing technical assistance and
information to local officials regarding municipal issues.
Michigan Townships Association. A non-profit organization formed to provide technical
information and assistance to Michigan’s township governments.