SB-0929, As Passed House, December 12, 2007
November 29, 2007, Introduced by Senator BARCIA and referred to the Committee on Finance.
A bill to amend 1895 PA 215, entitled
"The fourth class city act,"
by amending section 20 (MCL 110.20).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20. (1) If a greater amount is required in any year for a
lawful purpose than can be raised by the council under the
provisions of this chapter, the amount may be raised by tax or
loan, or partly by tax and partly by loan. The amount that may be
voted or raised by tax, if approved by a majority vote of the
electors at an annual or special city election, in any year under
the provisions of this act, shall not exceed 2% of the assessed
valuation of the real and personal property in the city as shown by
the last preceding tax rolls made in the city.
(2) The amount of indebtedness incurred by the issue of bonds
or otherwise, including existing indebtedness, shall not exceed 10%
of the assessed valuation of the real and personal property within
the city subject to taxation as shown by the last preceding
assessment roll of the city.
(3) In case of fire, flood, or other calamity requiring an
emergency fund for the relief of the inhabitants of the city, or
for the repairing or rebuilding of any of its municipal buildings,
works, bridges, or streets, the council 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 city, notwithstanding the loan may
increase the indebtedness of the city beyond the limitations fixed
by the city charter or in this act.
(4) In computing the net indebtedness the following shall be
excluded:
(a) Bonds issued in anticipation of the collection of special
assessments even though they are a general obligation of the city.
(b) Motor vehicle highway fund bonds even though they are a
general obligation of the city.
(c) Revenue bonds.
(d) Bonds issued or contract or assessment obligations
incurred to comply with an order of the water resources commission
or a court of competent jurisdiction even though they are a general
obligation of the city.
(e) Obligations incurred for water supply, sewage, drainage,
or refuse disposal projects necessary to protect the public health
by abating pollution even though they are a general obligation of
the city.
(f) Mortgage bonds which are secured only by a mortgage on the
property and revenues, including a franchise, stating the terms
upon which, in case of foreclosure, the purchaser may operate the
franchise; which franchise shall not extend for more than 20 years
after the date of the sale of the utility and franchise on
foreclosure.
(g) Bonds issued to acquire housing for which rent subsidies
will be received by the city or an agency of the city under a
contract with the United States government and used by the city to
operate and maintain the housing and pay principal and interest on
the bonds.
(5) The resources of the sinking fund pledged for the
retirement of any outstanding bonds shall also be deducted from the
amount of indebtedness.
(6) Bonds issued before the effective date of this subsection,
or contract or assessment obligations incurred before the effective
date of this subsection, are validated.
(7) In computing the net indebtedness determined under
subsection (2) there may be added to the assessed value of real and
personal property in a city for a fiscal year an amount equal to
the assessed value equivalent of certain city revenues as
determined under this subsection. The assessed value equivalent
shall be calculated by dividing the sum of the following amounts by
the city's millage rate for the fiscal year:
(a) The amount paid or the estimated amount required to be
paid by the state to the city during the city's fiscal year for the
city's
use pursuant to sections 134 and 136(1), (2), and (3) of Act
No.
228 of the Public Acts of 1975, being sections 208.134 and
208.136
of the Michigan Compiled Laws section 13 of the Glenn Steil
state revenue sharing act of 1971, 1971 PA 140, MCL 141.913. The
department of treasury shall certify the amount upon request.
(b) The amount levied by the city for its own use during the
city's
fiscal year from the specific tax levied under Act No. 198
of
the Public Acts of 1974, as amended, being sections 207.551 to
207.571
of the Michigan Compiled Laws 1974 PA 198, MCL 207.551 to
207.572.
(c) The amount levied by the city for its own use during the
city's
fiscal year from the specific tax levied under Act No. 255
of
the Public Acts of 1978, being sections 207.651 to 207.668 of
the
Michigan Compiled Laws the commercial redevelopment act, 1978
PA 255, MCL 207.651 to 207.668.