TO TOWNSHIP FOR ROAD PROJECT
House Bill 5261 (H-2) as reported from committee
Sponsor: Rep. Triston Cole
Committee: Local Government
Complete to 2-29-16
BRIEF SUMMARY: House Bill 5261 would amend Public Act 156 of 1851, which provides a list of the powers which may be exercised by a County Board of Commissioners, to allow a county to loan funds to a township for road construction.
FISCAL IMPACT: The bill does not appear to have a direct fiscal impact. It is permissive in that it authorizes, but does not mandate, a county board of commissioners to loan money to a township for a road construction project or to provide matching funds for a joint project between the county and a township.
THE APPARENT PROBLEM: Currently, townships are unable to borrow money for road construction, and may be limited to completing construction on a project-by-project basis. This bill would allow townships to borrow from counties and is intended to provide a cost savings, as costs typically rise over time, and would allow a township to complete road construction over a shorter period of time. (See Background Information.)
THE CONTENT OF THE BILL:
House Bill 5261 would amend Public Act 156 of 1851, to allow a county to loan funds to a township for road construction.
Current law lists 21 powers granted to a County Board of Commissioners, which include purchasing or leasing property to use for a courthouse or jail, setting the salaries for county employees, and passing ordinances.
House Bill 5261 would add the following: Loan funds to a township within the county for the purpose of funding a road construction project or providing matching funds for a joint project between the county and the township. A loan granted under this subsection shall not exceed a term of 10 years.
MCL 46.11.
BACKGROUND INFORMATION:
This bill is understood to address the needs of Norwood Township. According to the township supervisor, based on an inventory carried out with the Charlevoix County Road Commission, Norwood Township needs an estimated $400,000 to get its roads back into acceptable condition. With approximately $150,000 currently in its road fund and a 10-year one-mill levy approved last year, Norwood Township would have enough money to fix all of its roads by the end of the 10-year millage; however, it seeks to borrow against the millage and bid out all of its road work at one time, as soon as possible. This will prevent further deterioration of the roads over time that would only make repairs more expensive.
ARGUMENTS:
For:
Proponents argue that this bill would allow townships to borrow from the County Board of Commissioners in order to expedite road construction and keep costs down.
Against:
No one testified or voted against this bill in committee.
POSITIONS:
A representative of the Norwood Township Supervisor testified in support of this bill. (2-10-16)
A representative of the Michigan Townships Association testified in support of this bill. (2-10-16)
The Michigan Association of Counties indicated support. (2-10-16)
The Michigan Building and Construction Trades Council supports this bill. (2-10-16)
Legislative Analyst: Jennifer McInerney
Fiscal Analyst: William E Hamilton
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.