SENATE BILL No. 865

November 29, 2001, Introduced by Senator PETERS and referred to the Committee on

Finance.

A bill to amend 1989 PA 186, entitled

"County department of solid waste management act,"

by amending sections 7, 8, and 9 (MCL 45.587, 45.588, and

45.589).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 7. The acquisition, improvement, enlargement, or

2 extension of a solid waste system under this act may be financed

3 by 1 or more of the following methods:

4 (a) The issuance of revenue bonds under the revenue bond act

5 of 1933, Act No. 94 of the Public Acts of 1933, being

6 sections 141.101 to 141.140 of the Michigan Compiled Laws 1933

7 PA 94, MCL 141.101 TO 141.140, or any other applicable act.

8 (b) The issuance of bonds in anticipation of payments to

9 become due under 1 or more contracts whereby 1 or more public

10 corporations, including the county itself, agree to pay to the

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1 county certain sums toward the cost of the acquisition,

2 improvement, enlargement, or extension of a system instituted

3 under this act.

4 (c) Through money advanced by a county under agreements with

5 1 or more public corporations for the repayment of the money.

6 (d) Through money advanced, periodically, before or during

7 construction of a system, by a public or private corporation,

8 firm, or individual, in which event the county shall reimburse

9 the individual, firm, or corporation, with interest not to

10 exceed 10% per annum or without interest as may be agreed, when

11 funds are available. The obligation of the county to make this

12 reimbursement may be evidenced by a contract or note that may be

13 made payable out of the payments to be made by public corpora-

14 tions under a contract described in section 9 or 13, out of the

15 proceeds of bonds issued pursuant to this act by the county, or

16 out of any other available money. However, the contract or note

17 shall not be considered an obligation within the meaning of the

18 municipal finance act, Act No. 202 of the Public Acts of 1943,

19 being sections 131.1 to 139.3 of the Michigan Compiled Laws

20 REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

21 141.2821.

22 Sec. 8. Bonds issued under this act shall be authorized by

23 a resolution or ordinance adopted by the county board of

24 commissioners. The county board of commissioners may, by a

25 majority vote of its members elect, pledge the full faith and

26 credit of the county for the prompt payment of the principal of

27 and interest on any bonds, including revenue bonds, issued

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1 pursuant to this act. If it becomes necessary for the county to

2 advance money, other than its share of the cost of the project

3 for the payment of principal and interest, then the county is

4 entitled to reimbursement from any surplus from time to time

5 existing in the fund from which the principal and interest are

6 primarily payable. If the full faith and credit of the county

7 are pledged for the payment of principal of and interest on any

8 bonds issued pursuant to this act, the county may, in the case of

9 insufficiency of funds primarily pledged for the payment, pay the

10 principal and interest from its general fund or levy taxes, but

11 not in excess of the rate or amount necessary to make up the

12 deficiency and not in excess of, or contrary to, constitutional

13 limitations. The bonds shall be issued in the name of the county

14 and shall be executed by the manual or facsimile signatures of

15 the chairperson of the county board of commissioners and the

16 county clerk, and the seal of the county shall be impressed or

17 imprinted on the bonds. The bonds issued under this act shall

18 be negotiable instruments and shall be serial bonds, term bonds,

19 or both, payable or subject to mandatory redemption, as the case

20 may be, annually, with the first maturity or mandatory redemption

21 due not more than 10 years and the last maturity not more than 40

22 years from the date of the bonds. Each annual maturity or manda-

23 tory redemption payable after 10 years from the date of the bonds

24 shall not be less than 1/5 of the amount of any subsequent matu-

25 rity or mandatory redemption on the same series of bonds.

26 Several series of bonds issued to finance all or any part of a

27 solid waste system may be treated as a single issue for the

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1 purpose of fixing maturities or mandatory redemptions. The bonds

2 shall be issued pursuant to , and shall bear interest at not

3 more than the maximum rate permitted by, the municipal finance

4 act, Act No. 202 of the Public Acts of 1943, being sections 131.1

5 to 139.3 of the Michigan Compiled Laws THE REVENUE BOND ACT OF

6 1933, 1933 PA 94, MCL 141.101 TO 141.140, OR THE REVISED MUNICI-

7 PAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821, and in all

8 cases where required by article IX of the constitution of 1963,

9 shall be subject to a vote of the people. This interest shall

10 be payable at least semiannually, except that the first interest

11 payment may be on a date not later than 10 months after the date

12 of the bonds. Bonds issued under this act shall be made payable

13 in lawful money of the United States of America and are exempt

14 from all taxation by the THIS state or by any taxing authority

15 within the state.

16 Sec. 9. (1) A county may contract with 1 or more public

17 corporations, including the county itself, for the acquisition,

18 improvement, enlargement, or extension of a solid waste system

19 and for the payment of the cost of the system by the contracting

20 public corporations, with interest, over a period not exceeding

21 40 years.

22 (2) In a contract entered into under subsection (1), each

23 contracting public corporation shall pledge its full faith and

24 credit for the payment of its obligations under the contract. If

25 the public corporation has taxing power, it may each year levy a

26 tax in an amount that is sufficient for the prompt payment of all

27 or part of the contract obligations due before the following

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1 year's tax collection. IF THE CONTRACT OR AN UNLIMITED TAX

2 PLEDGE IN SUPPORT OF THE CONTRACT HAS BEEN APPROVED BY THE ELEC-

3 TORS OF THE MUNICIPALITY, THE CONTRACT IS SUBJECT TO THE REVISED

4 MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821. If

5 the contract or an unlimited tax pledge in support of the con-

6 tract has been approved by the electors, the tax may be in addi-

7 tion to any tax that the public corporation otherwise may be

8 authorized to levy and may be imposed without limitation as to

9 rate or amount, but shall not be in excess of the rate or amount

10 necessary to pay the contract obligation. For the payment of

11 contractual obligations incurred pursuant to this section, a

12 township shall levy a tax only on the taxable property of the

13 township not incorporated as a village unless the township and a

14 village have agreed that a part of the capacity in the county

15 system allocated to the township by contract pursuant to this act

16 will be used to serve areas in a village located wholly or partly

17 within the township and the village has not itself agreed to pur-

18 chase that capacity in the county system. If a contracting

19 public corporation at the time of its annual tax levy has on hand

20 in cash or has budgeted any amount pledged to the payment of the

21 current obligations for which the tax levy is to be made, then

22 the annual tax levy may be reduced by that amount. For the pur-

23 pose of obtaining the credit, money may be raised by a public

24 corporation by 1 or more of the following methods:

25 (a) Service or availability charges to users or customers of

26 the system in an amount no greater than that needed to pay the

27 current operating costs of the system.

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1 (b) Special assessments upon lands benefited, directly or

2 indirectly or at a present or future time.

3 (c) Setting aside state collected money disbursed to the

4 public corporation and usable for this purpose.

5 (d) Setting aside other available money.

6 (3) Money raised or to be raised by a public corporation by

7 a method described in subsection (2) may be pledged to secure the

8 payment of its obligations under a contract entered into under

9 subsection (1).

10 (4) A public corporation may agree to raise all or any part

11 of its contract obligation by a method provided in this section

12 or by another legally available method. The governing body of a

13 public corporation shall exercise the powers granted to the

14 public corporation under this act.

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