TREATMENT OF SPECIAL ASSESSMENT

WHEN MUNICIPALITIES CONSOLIDATE

House Bill 4520

Sponsor:  Rep. Vicki Barnett

Committee:  Intergovernmental and Regional Affairs

Complete to 6-1-09

A SUMMARY OF HOUSE BILL 4520 AS INTRODUCED 3-5-09

House Bill 4520 would amend the Home Rule City Act to allow address the case where a city or village that levies a special assessment millage for local services consolidates with another city.

Under the bill, if a city or village levies a special assessment millage for certain of its services, and is also consolidated with another city as allowed under the act, then the governing body of the consolidated city could, whether or not authorized by its charter, establish by resolution a central city district composed of the same boundaries as that city or village that levied the special assessment millage.

The question of whether the consolidated city could levy a special assessment millage on property located in the central city district (in order to provide certain services to the residents who live there), as well as the amount of that special assessment, would have to be put to the voters at a general election or a special election called for that purpose.  The consolidated city could levy the special assessment millage on property located in the central city district only if a majority of the voters in the central city district approved the special assessment.

MCL 117.5k

FISCAL IMPACT:

The bill would have no impact on state revenues and would be expected to have a minimal impact on local finances.

                                                                                           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.