CERTAIN PUBLIC IMPROVEMENTS BY TOWNSHIPS
Public Act 188 of 1954, as amended
MCLA 41.721 et seq.
Units: Townships
Improvements: STORM AND SANITARY SEWERS; WATER MAINS; PUBLIC ROADS; PUBLIC PARKS, ELEVATED FOOT BRIDGES; GARBAGE AND RUBBISH COLLECTION; BICYCLE PATHS; EROSION CONTROL STRUCTURES AND DIKES; TREES; LIGHTING SYSTEMS; SIDEWALKS; AQUATIC WEEDS AND PLANTS; PRIVATE ROADS; THE CONSTRUCTION, IMPROVEMENT AND MAINTENANCE OF A LAKE, POND, RIVER, STREAM, LAGOON, OR OTHER BODY OF WATER OR OF AN IMPROVEMENT TO THE BODY OF WATER, WHICH INCLUDES BUT IS NOT LIMITED TO, DREDGING; THE CONSTRUCTION, IMPROVEMENT AND MAINTENANCE OF DAMS AND OTHER STRUCTURES WHICH RETAIN THE WATERS OF THIS STATE FOR RECREATIONAL PURPOSES. [MCLA41.722, as amended]
Comments: This is the most commonly utilized statute for creating a special assessment district for improvements other than police and fire protection and sidewalk improvements.
Public Act 359 of 1947, "The Charter Township Act," directs charter townships to proceed under 1954 PA 188 when levying special assessments for the above improvements.
I. Improvement Financing
A. General fund.
B. Special assessments.
C. County road commission funds.
D. Township Improvement Revolving Fund. [MCLA 41.735a]
E. State and federal grants.
F. Bonds paid from special assessments.
G. Any other available legal revenue.
II. Initiate Procedure
A. Township Board Action
For storm and sanitary sewers, water systems, public parks, elevated foot bridges, garbage and rubbish collection, erosion control structures or dikes, tees, lighting systems, aquatic weed and plant control: Unless record property owners of more than 20% of the total land area file written objections at or before the Hearing of Necessity.
For public roads, bicycle paths, sidewalks, private roads: Unless record property owners of more than 20% of the total frontage along the proposed improvement file written objections at or before the Hearing of Necessity.
B. Citizen Petition
If written objections to the township board resolution initiating the procedure are filed as indicated in A above, or the township board requires citizen petition, the township board cannot proceed unless a citizen petition is filed as follows:
For storm and sanitary sewers, water systems, public parks, elevated foot bridges, garbage and rubbish collection, erosion control structures or dikes, trees, lighting systems, aquatic weed and plant control: Record property owners of more than 50% of the total land area in the special assessment district.
For public roads, bicycle paths, sidewalks, private roads: Record property owners of more than 50% of the total frontage along the proposed improvement. [MCLA41.723]
III. Approval of Highway Improvements
Highway improvements cannot be made without the written approval of the Michigan Department of Transportation or the County Road Commission, whichever has jurisdiction. [MCLA 41.722]
IV. Preparing Plans and Cost
A. Township board contacts Township's registered engineer to prepare plans and cost estimates.
B. If board wishes to proceed after receiving cost estimates, it should adopt a resolution tentatively declaring its intention to set up the district, designating the boundaries of the proposed special assessment district and tentatively approving the project and the cost estimate. [MCLA 41.724]
V. Public Hearing
A. Township board must conduct a hearing to hear objections to creating a special assessment district to the petition, if filed, and to the project and cost estimate. [MCLA 41.724]
B. Notice Requirements:
1. 1962 PA 162: Notice of hearing must be sent by first class mail at least ten (10) days prior to the hearing.
2. 1954 PA 188: Two notices must be published in a general circulating newspaper in the township. First notice is published at least ten (10) days prior to hearing. [MCLA 41.724a]
3. 1976 PA 267, "Open Meetings Act."
C. If township board determines to approve the project and cost estimates and create the special assessment district, it shall adopt a resolution:
1. Approving the completion of the improvement.
2. Approving plans and estimates of cost as originally presented or as revised, corrected, amended, or changed.
3. Determining the sufficiency of the petition if a petition is required (this determination can only be challenged in court within 30 days after this resolution is adopted).
4. Determining the boundaries of the district and the term of its existence and provide for periodic re-determination of cost and the dates thereof, if appropriate.
5. Directing the supervisor to make the special assessment roll. [MCLA 41.725]
6. NOTE: If the supervisor is prepared, the proposed roll can be filed immediately following the adoption of the above resolution. Board may then set a date for the second hearing.
VI. Public Hearing
A. Township Board must conduct a hearing to hear objections to the special assessment roll. [MCLA 41.726]
B. Notice requirements:
1. 1962 PA 162: Notice of hearing must be sent by first class mail at least ten (10) days prior to the hearing.
2. 1954 PA 188: Notice of hearing and filing of roll published twice prior to hearing in a general circulating newspaper in the township. First notice is published at least ten (10) days prior to hearing. [MCLA 41.726]
3. 1976 PA 267: "Open Meetings Act."
VII. During and Following Public Hearing
A. Objections of property owners to the assessment roll should be filed in writing before the close of hearing or within a period of time granted by board. [MCLA 41.726]
B. Board can confirm the roll at hearing or subsequent hearing as originally reported, amended or corrected. Board can refer it back to supervisor for revisions or annul it and direct that a new roll be prepared.
C. Treasurer collects assessments as they become due. Township board establishes due date for first payment. Further installments are due twelve (12) months from date originally established or any other date established by township board. [MCLA 41.727]
D. Township clerk endorses confirmed roll, delivers warrant and roll to treasurer to collect special assessments. [MCLA 41.726]
VIII. Installment Payment of Assessments
A. Interest Calculated Prior to Transfer to Tax Roll:
1. All unpaid installments bear interest, payable annually, at rate not more than 1% above the average interest rate of special assessment bonds or 1% above the average interest rate of bonds issued by a county, drainage district, or authority if the unpaid installments are to be applied to contract payments of the township to a county, drainage district or authority. [MCLA 41.727]
2. If money is advanced from the general fund and bonds are not issued, the interest rate cannot exceed 8% a year. [MCLA 41.727]
3. Interest commences on a date fixed by the township board.
4. The resolution confirming the roll should specify the interest rate and number of installments and date interest commences.
B. Delinquent Assessments:
1. If an installment is not paid when due, additional interest shall be charged on the delinquent sum at a rate of not more than 1% per month or a fraction of a month it remains unpaid.
2. On September 1, the treasurer must report delinquent assessments to the township board which certifies this information to the supervisor. The supervisor reassesses the delinquent sum, with interest and penalties to September 1, on the regular tax roll in a column headed "Special Assessments." An additional penalty of 6% is calculated on the total amount.
IX. Township Improvement Revolving Fund (TIRF)
A. Alternate means to defray the cost of improvements made under 1954 PA 188. [MCLA 41.735a]
B. Create TIRF:
1. Township board, by resolution, designates this fund and may transfer to said fund up to two (2) mills in any one year of the state equalized value of the real and personal property in the township from the general fund.
2. Each year thereafter, the township board may transfer up to two (2) mills of the state equalized valuation of the township's real and personal property from the general fund to the TIRF until the total balance is equal to five (5) mills of the state equalized value of the township.
C. Township board may pay the cost of the improvement from the TIRF after the special assessment roll is confirmed. The monies advanced by the township to the TIRF can bear interest not in excess of 5% per year. [MCLA 41.735a] This rate of interest should be set out in the resolution confirming the roll.
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