Bill Text: MI SB0592 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Villages; home rule; computation of net indebtedness; modify to include eligible reimbursements under the local community stabilization authority act. Amends sec. 26 of 1909 PA 278 (MCL 78.26).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-04-10 - Assigned Pa 0088'18 With Immediate Effect [SB0592 Detail]
Download: Michigan-2017-SB0592-Introduced.html
SENATE BILL No. 592
September 27, 2017, Introduced by Senators SHIRKEY, STAMAS and BRANDENBURG and referred to the Committee on Finance.
A bill to amend 1909 PA 278, entitled
"The home rule village act,"
by amending section 26 (MCL 78.26), as amended by 2011 PA 139.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 26. (1) A village shall not do any of the following:
(a) Submit to the electors a charter or a revision of a
charter more often than once in every 2 years or file it with the
village clerk less than 90 days before the election. This
subdivision does not apply to the submission and resubmission of
charters to villages that may be incorporated under this act until
they have first adopted a charter.
(b) Call more than 2 special elections within 1 year. This
prohibition does not apply to elections that may be held in the
submission and resubmission of charters to villages that may be
incorporated under this act until they have first adopted a
charter.
(c) Change the salary or emoluments of a public official after
his or her election or appointment, or during his or her term of
office, if the office is held for a fixed term, or shorten or
extend the term of a public official from the period for which he
or she was elected or appointed, unless he or she is removed for
cause.
(d) Adopt a charter or amendment to a charter, unless approved
by a majority of the electors voting on the charter or amendment at
a general or special election.
(e) Authorize an issue of bonds unless approved at an election
by a majority of the electors of the village voting on the issuance
of the bonds. This subdivision does not apply to special assessment
bonds, bonds for the village portion of local improvements, not to
exceed 40% of the cost of the improvement, refunding bonds, bonds
for relief from fire, flood, or calamity, or for payment of
judgments, or bonds that the legislative body is authorized by
specific statute to issue without vote of the electors.
(f) Adopt a scheme for exemption from municipal taxation.
(g) Repudiate a debt by a change in its charter or by
consolidation with any other municipality.
(h) Incur indebtedness by the issue of bonds, or otherwise, in
a sum that, including existing indebtedness, exceeds 10% of the
assessed valuation of the real and personal property within the
village subject to taxation, as shown by the last assessment roll
of the village. Bonds issued in anticipation of the collection of
special assessments, even though they are a general obligation of
the village, motor vehicle highway fund bonds, revenue bonds, and
bonds issued, or contract or assessment obligations incurred, to
comply with an order of the department of environmental quality or
a court of competent jurisdiction, even though they are a general
obligation of the village, bonds issued, or contract or assessment
obligations incurred, for water supply, sewerage, drainage, or
refuse disposal projects necessary to protect the public health by
abating pollution, even though they are a general obligation of the
village, and bonds issued or assessments or contract obligations
incurred for the construction, improvement, or replacement of a
combined sewer overflow abatement facility are not included in this
limitation. Money on hand in a sinking fund limited to the payment
of indebtedness may be treated as a reduction of the indebtedness
to that extent. If, because of fire, flood, or other calamity, an
emergency fund is required for the relief of the inhabitants of the
village or for the repairing or rebuilding of any of its municipal
buildings, works, bridges, or streets, the legislative body of the
village may borrow money due in not more than 3 years and in an
amount not exceeding 1/4 of 1% of the assessed valuation of the
village, notwithstanding that the loan may increase the
indebtedness of the village beyond the limitations fixed by its
charter or in this subdivision. If a village is authorized to
acquire or operate a public utility, it may issue mortgage bonds
for that purpose beyond the general limit of bonded indebtedness
prescribed by law. The mortgage bonds issued beyond the limit of
general
indebtedness prescribed by law shall must not impose a
liability
upon the village, but shall must
be secured only upon the
property and revenues of the public utility, including a franchise,
stating the terms upon which, in case of foreclosure, the purchaser
may
operate the public utility. The franchise shall must not
extend
for a period longer than 20 years from the date of the sale of the
public utility and franchise on foreclosure. Bonds issued, or
contract or assessment obligations incurred, before July 31, 1973
are validated. As used in this subdivision:
(i) "Combined sewer overflow" means a discharge from a
combined sewer system that occurs when the flow capacity of the
combined sewer system is exceeded.
(ii) "Combined sewer overflow abatement facility" means works,
instrumentalities, or equipment necessary or appropriate to abate
combined sewer overflows.
(iii) "Combined sewer system" means a sewer designed and used
to
convey both storm water runoff and sanitary sewage, and which
that contains lawfully installed regulators and control devices
that allow for delivery of sanitary flow to treatment during dry
weather periods and divert storm water and sanitary sewage to
surface waters during storm flow periods.
(iv) "Construction" means any action taken in the designing or
building of a combined sewer overflow abatement facility.
Construction includes, but is not limited to, all of the following:
(A) Engineering services.
(B) Legal services.
(C) Financial services.
(D) Design of plans and specifications.
(E) Acquisition of land or structural components.
(F) Building, erection, alteration, remodeling, or extension
of a combined sewer overflow abatement facility.
(G) Village supervision of the project activities described in
sub-subparagraphs (A) to (F).
(v) "Improvement" means any action undertaken to expand,
rehabilitate, or restore a combined sewer overflow abatement
facility.
(vi) "Replacement" means action taken to obtain and install
equipment, accessories, or appurtenances during the useful life of
a combined sewer overflow abatement facility necessary to maintain
the capacity and performance for which the equipment, accessories,
or appurtenances are designed and constructed.
(i) Lay or collect taxes for municipal purposes except as
otherwise provided by law, at a rate in excess of 2% of the
assessed value of all real and personal property in the village.
(j) Issue bonds without creating a sinking fund for the
payment of the bonds, except special assessment bonds that are a
charge upon a special district created for the payment of the
bonds, and serial bonds payable annually.
(2) In computing the net indebtedness for the purposes of
subsection (1)(h), there may be added to the assessed value of real
and personal property in a village for a fiscal year an amount
equal to the assessed value equivalent of certain village revenues
as determined under this subsection. The assessed value equivalent
must be calculated by dividing the sum of the following amounts by
the village's millage rate for the fiscal year:
(a) The amount paid or the estimated amount required to be
paid by the state to the village during the village's fiscal year
for the village's use under the Glenn Steil state revenue sharing
act of 1971, 1971 PA 140, MCL 141.901 to 141.921, and the amount of
any eligible reimbursement to the village under the local community
stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362,
except any amount distributed under section 17(4)(c) of the local
community stabilization authority act, 2014 PA 86, MCL 123.1357, in
excess of the village's qualified loss. The department of treasury
shall certify these amounts upon request. As used in this
subdivision, "qualified loss" means that term as defined in section
5 of the local community stabilization authority act, 2014 PA 86,
MCL 123.1345.
(b) The amount levied by the village for its own use during
the village's fiscal year from the specific tax levied under 1974
PA 198, MCL 207.551 to 207.572.
(c) The amount levied by the village for its own use during
the village's fiscal year from the specific tax levied under the
commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668.
(3) (2)
Beginning on the effective date
of the amendatory act
that
added this subsection, September
13, 2011, a village shall not
adopt a village charter or ordinance that includes any minimum
staffing
requirement for village employees. Except as otherwise
provided
in this subsection, any Any provision in a village charter
or
ordinance adopted on or after the effective date of the
amendatory
act that added this subsection September
13, 2011 that
contains a minimum staffing requirement for village employees is
void and unenforceable.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
