POPULATION THRESHOLD TO ISSUE G.O. BONDS

& OTHER DEBT UNDER HOME RULE CITY ACT

House Bill 5296

Sponsor:  Rep. Shanelle Jackson

Committee:  Local, Intergovernmental, and Regional Affairs

Complete to 2-22-12

A SUMMARY OF HOUSE BILL 5296 AS INTRODUCED 1-26-12

House Bill 5296 would amend the Home Rule City Act to allow any municipality with a population of 600,000 or more could issue general obligation bonds and other evidence of debt, subject to the overall debt limitations provided by state law or municipal charter.  This provision of the Home Rule City Act currently sets the population threshold at 750,000.

The bill would apply to the City of Detroit, whose population dropped below 750,000 in the most recent census.

MCL 117.5 and 35a

FISCAL IMPACT:

The bill would essentially keep current provisions and practices in place by amending the population threshold for issuing municipal debt.

                                                                                           Legislative Analyst:   J. Hunault

                                                                                                  Fiscal Analyst:   Jim Stansell

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.