Understanding LocalGov

8/9/2019 Understanding LocalGov

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Bringing Knowledge to

State and Local Government Program


Understanding

Local Governmentin Michigan


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State and Local Government Program, MSU Extension

Local Government in Michigan

Program will help you:

Learn more about the development oflocal government in Michigan

Understand how local governmentsoperate and the services they provide

Explore the ways that you can be moreactively involved.


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What is Local Government?

Uses tax revenues

Has own governing body (usually elected)

What do local governments do for YOU?

Provide a wide range ofprograms andservices


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What does local government do for you?

Where would you go to

Have your name changed

Get a birth certificate or marriage license

Obtain a building permit

Deal with a sewer or drainage problem

Get an immunization

Register to vote

Obtain records of property ownership


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This session will examine

History and structure of local governmentin Michigan

Focus on county government, then,townships, villages and cities

Brief overview of how local government isfunded.

Exploring the paths for citizen involvement


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History and structure of local

government in Michigan


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Michigan Has 8

Type Quantity

Townships 1,242

Villages 261

Cities 272Counties 83

School districts 556

Int. school districts 57

Community colleges 29

Special authorities unknown

Total 2500+

GENERA

LPURPO

SE

SPECIALPURPO

SE

Types of Local

Government


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* Boundaries may cross city, township and village lines

** Boundaries are within the township

*** Boundaries may include more than one county

Local GovernmentsOverlapping Boundaries

City

School Dist.*

Township**

Intermediate SchoolDist.***

County


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Michigans Local Government Heritage

Northwest Ordinance (1787), and then thestates four constitutions, establishedframework for local government.

Large number of local governments (13thamong the 50 states)

Strong sense of local control

Strong emphasis on role of governmentand education


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U.S. Congress Shaped MichiganLocal Government

Land Ordinance of 1785

Established rectangular grid survey

Townships were 6 miles x 6 miles

Reserved Section 16 lands for public education

Northwest Ordinance of 1787

State intention to divide territory into 3-5 states(Ohio, Indiana, Illinois, Wisconsin, Michigan)


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Northwest Ordinance of 1787

Guaranteed rights for settlers:

Habeas corpus

Due process

Religious freedom

Prohibited slavery in the territory Guaranteed statehood when there were 60,000

inhabitants

Ad valorem taxes to be used to finance local

govt.


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Michigan Becomes a State--1837

1834 census counted 84,000 in lowerpeninsula

First state constitution ratified in 1835

Statehood delayed until 1837 because ofboundary dispute with Ohio.

Final agreement: Toledo for Ohio, U.P. for

Michigan


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Three patterns for local governments in1837

New England Plan Compact settlements; town/township was basic unit

County served basic judicial function

Virginia Plan

Scattered settlements; land granted to individuals county was principle unit, no townships

Most officials appointed

New York Plan Western N.Y. settled by New Englanders, thus, strong

township influence; however, counties became stronger

As local government evolved in Michigan, counties andtownships shared powers.


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Local Government Powers

Granted existence by state constitution

Political subdivisions of the states

No inherent right to existence

Power of local governments rests largelywith provisions, interpretations of stateconstitutions.


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Two Sides of the Argument

of Local vs. state control

Dillon's

Rule

Cooley

Doctrine


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Home Rule Concept

Most forcefully argued by Thomas Cooley (MI SupremeCourt) in late 1800s

Grants discretionary authority to local governments overlocal affairs

Local government is a matter of absolute right to citizens,cannot be taken away by state

C t f th St t (N


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Creatures of the State (No

Home Rule)

Dillions Rule (Iowa Supreme Court)

Local governments possess no inherentsovereignty unless expressly implied bystate law

Local governments owe their veryexistence to the state


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Trenton v. New Jersey 1923 (U.S.Supreme Court)

In the absence of state constitutional provisionssafeguarding it to them, municipalities have noinherent right of self-government which is

beyond the legislative control of the state. 1Amunicipality is merely a department of the state,and the state may withhold, grant or withdrawpowers and privileges as it sees fit. However

great or small its sphere of action, it remains thecreature of the state exercising and holdingpowers and privileges subject to the sovereignwill.

A i th D f


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Assessing the Degree of

Home Rule

Degree of Discretionary Authority

Immunity from state mandates/legislation

Court interpretation of local government

authority also called liberal construction


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Local Control

Local control is constantly evolving Subject to legislative agenda, courts

Locals have power to act unless prohibited bylegislature, constitution

Legislature has provided: Examples: home rule authority; planning and zoning

authority

State has also removed powers: Examples: employee residency requirements; Right to

Farm legislation

D f Di ti


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Degree of Discretionary

Authority over:

Structure and organization; How willyou operate?

Function: What will you do?

Fiscal: How will you raise spend andborrow money

Personnel: Number, type and conditionof employees

Mi hi H R l &


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Michigan Home Rule &

Constitution

In general, Michigan home rule is not as strong as itwould first appear

Constitutional provisions for home rule do not identifyschool districts

Statues must be passed to implement constitutionalprovisions

Legislature shall pass no special or local in any case

where a general act can be made applicable

State is prohibited from requiring any new or expandedactivities by local governments without full state financing


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1835 Constitution Individual liberties; self-government State and local court system Elected county officials

1850 Constitution Established Board of Supervisors 1908 Constitution

Citizens given more role in government

Home rules for cities 1963 Constitution Provided option for county charters Better defined relationships between levels of

government

Local Government andthe State Constitutions


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Focus on county government,townships, villages and cities


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Grand Design of Local Govt

Counties would serve as outposts ofstate government agent of the state

Cities would provide for the urbanpopulation

Townships provide basic services forrural residents (assessing, collectingtaxes and conducting elections

Villages serve as transition governmentfrom rural township to an urban center.


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Counties

Largest political subdivision of the state

Began in Wayne County in 1796

38 counties established when Michiganbecame a state in 1837

Dickinson (1891)--last of the now 83counties


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Michigans 83 Counties

Size:

Population:Keweenaw 2,300

Wayne 2,061,162

1,828 sq. miles

BENZIEMARQUETTE

316 sq. miles


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Michigan County Government

Formed to centralize administrative functions ofstate government and to address needs of

citizens. Responsibilities have remained much

the same through the years. Equalization of taxes

Election oversight

Records of persons and property

Licensing

Roads Care of rural lands and populations

Provision of health and social services


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County Government--Other States

County governmentall but 3 states(Connecticut, Hawaii, Rhode Island)

Terminology different in some states:

Boroughs in Alaska Parishes in Louisiana

Commissioners are called: freeholders in New Jersey,supervisors in California, police jurors in Louisiana

and judges in several southern states


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Michigan County Government

Powers conferred by the state Must be directly authorized by constitution or

law

Must be related to county affairs Must not interfere in local affairs

Must be consistent with state law


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County Board of Commissioners

Originally Michigan had a Board ofSupervisors(representing each township and city)

1967 U.S. Supreme Court ruling (Avery vs.Midland TX) brought one person one vote tolocal government

Board of Supervisors became Board of

Commissioners in 1968


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County Boards

County boards can change size after census;currently 699 commissioners in state 18.7 percent are female

Average age is 55.1 years

64.7% Republican

Size of board depends on population--rangesfrom5-26

Urban counties have as many as 80,000constituents per commissioner; rural have as few as445.

Commissioners serve two-year terms Partisan elections held in even years


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Functions of the County Board

Legislation (resolutions and ordinances)consistent with grant of authority

Budgeting

Establish compensation for employees

Make appointments to county positions

Provide constituent services


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Elected County Officials

Constitution specifies 4 or 5 electedadministrative officials Sheriff, Clerk*, Register of Deeds*, Treasurer,

Prosecuting Attorney Elected for 4-year terms

Partisan races in gubernatorial elections

Optional elected administrative positions Drain Commissioner, Members of Road

Commission, Surveyor, Mine Inspector

*These two offices can be combined.

Oth R ibiliti f


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Other Responsibilities ofCounty Government

Public Health Mental HealthAnimal Control MSU Extension

Fair Board Social Services

Veterans Affairs Senior Services

Friend of the Court Economic Development

Planning/Zoning Hospital

Emergency Medical

Services

Emergency Preparedness

Parks Public Works

Circuit, Probate, DistrictCourts


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County Administration

County elected officials carry out administrative functions(no central administration)18

With growing populations and increasing complexity ofissues, more counties have created administrative

positions: Elected Executive3

Controller--11

Controller/Administrator--15

Administrator29 Director of Finance--2

Coordinator--5


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Functions of County Administration

Separates policymaking fromadministration

Centralizes administrative functions in

single person/office Budget development, monitoring

Leadership for county staff

Personnel and labor relations

Purchasing Buildings and grounds

Other duties depending on position


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Township Government in Michigan

20 states with township government

Townships originally 36 square miles; now rangefrom 4 square miles to 600

1242 townships Jurisdiction of almost 95% of total land

Almost half of states population live in a

township Population range: 10-95,000


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Township History

1787: Northwest Territory divided the land into

36-mile squares called townships(section 16

set aside for schools)

1827: Townships were made governmental

units

1947: Charter Township Act provided option

for townships to increase tax revenues andprovide more services


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Two Forms of Townships

State law provides for eithergeneral laworchartertownships

Organization of government is same

Different ability to levy taxes; chartertownships can levy 5 more mills and anadditional 5 with vote of people

Units choose which option works for them;

can adopt charter if population is over 2000 Charter townships do not actually adopt a

charter

Two Methods of Achieving Charter


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Two Methods of Achieving CharterStatus for Townships

Vote of registered electors or TownshipBoard Resolution

If by Election:

5 charter mills, voters may increase the limit to10 mills

If by Resolution:

Levy only the amount currently authorized,voters may increase to 5 mills


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Townships

Responsible for all aspects of local government Health, safety, welfare

Fire protection

Traffic safety

Land use and zoning Subdivision controls

Licensing of businesses

Administer elections

Assess property and collect taxes May also provide public water and sewers, libraries, etc.


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Leadership for Townships

Township governing structure specified in

constitution; officials elected for four-year

terms on partisan ballot in the presidential

election year:

Supervisor

Clerk

Treasurer

Trustees2-4


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Township Legislative Body

General Law 5 person board allelected, may hire a townshipadministrator

Charter Township 7 person board, hiretownship manager or superintendent

Board appoints individuals to variousboards and commissions


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Village Government

Historically formed when greater population density within atownship leads to the need for more services

Licensing and regulation

Establishment of own water supply, sewerage

Controlling and maintaining own streets, roads

Villages remain part of township Residents vote in village and township elections

Subject to both village and township taxes

Presently--261 villages with populations ranging from 130 - 10,000


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Village History

Before 1895special charters passed bylegislature

1895 General Law Village Actincorporated everyexisting village

1909 Home Rule Village Act

Mandated by 1908 Constitution

Permitted existing villages to adopt charter (presently

about 50 in 2005)


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Village Leadership

Village officials elected in partisanelections for 2-4 year terms; 2nd Monday inMarch

General Law villages elect: president,clerk, treasurer and 6 trustees

Home Rule villages elect president, clerk

and a legislative body; others as needed

Vill G t


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Village Government--Types of Responsibilities

Sidewalks

Street lighting and pavement

Zoning

Local water supply

Care of cemeteries

Building regulations


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City Government

272 cities; populations range from 500 900,000

Formed when community becomes moredensely populated; residents decide tobecome a city in order to provide a full

array of municipal services


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Prior to Home Rule City Act

Cities incorporated by special acts of thelegislature, therefore the act organizingthe city became the basic law for the city,

any modification required legislative action


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Home Rule Act 1909 (I)

Constitution of 1908 mandated that thelegislature pass such a law Legislature shall provide for by general law

the incorporation of cities and villages Law shall limit their taxation, borrowing and

contracting debts powers.


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Home Rule Act 1909 (II)

General Law shall further provide thatelectors of each city and village mayframe, adopt, and amend its charter, and

amend its existing charter granted by thelegislature

Empowered cities and villages to passlaws and ordinances relating to its

municipal concerns subject to theconstitution and general laws of the state.


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City Government

Cities have flexibility in structure, taxingpowers, writing ordinances

Cities carry on same type of business as

townships/villagesusually on largerscale; responsible for:

Assessing property

Collecting taxes Conducting elections


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City Government

All cities in Michigan are Home Rule Citiesbut arrived at their status through twoavenues:

Home Rule City Act or Fourth Class Cities Act (1980)


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Leadership for City Government

Each city charter determines form of government;options: Council-manager

Strong mayor-council

Weak mayor-council Charter establishes election process for city officials

Election dates (April or November of odd years)

Usually four-year terms

Usually non-partisan Positions: council members, and, depending on charter,mayor, clerk and treasurer


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Types of City Services

Sidewalks

Police

Zoning

Sewers

Libraries

Streets

Recreation

Fire protection

Water supply

Transportation

Trash removal


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Authorities

Special purpose governments defined by statelaw; constitution permits these and othercooperative agreements

Provide services requiring large capital

expenditures Mass transportation

Recreational facilities

Wastewater treatment

Facilitate long term investments Airports Ports

Public utilities


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Intergovernmental Cooperation

State constitution gives: Local governments ability to enter into agreements with other political units

Legislature power to create metropolitan authorities

Local governments ability to cooperate in execution of any functions orpowers which they could perform separately.

Examples: Language in planning and zoning acts allowing for cooperative study

Joint agreements on recreational facilities, police and fire services, contractsbetween municipal corporations, etc.

Regional planning commissions

How Do We Pay


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How Do We PayFor Local Government?

Property tax

Special Assessment

Revenues from the state

Federal monies

Other fees, permits, grants, etc.

Option for citiesincome tax

Property Tax


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Property TaxBasic Facts

Started with Northwest Ordinance Used for cities, counties, townships, schools,

villages, authorities, community colleges

Primarily a local tax; there is also a stateproperty tax for schools

Property tax ratemill--$1/$1,000 of State Equalized Value(SEV)

Property tax is millage rate x taxable value


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Public Debt and Borrowing

Public bodies (local govt) have the powerto borrow money and to issue securities(Constitution)

Fi i l E


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Financial Emergency

Local Govt Fiscal Responsibility Act (Act 72 of 1990)

Conditions to call for Financial Emergency Undisputed claim, six months old+, exceeding $10,000

Petition to state treasurer form 10% of registered voters Pension beneficiaries, actuary or accountant reports violation ofpension deposits

Local employees have been unpaid for at least 7 days

Resolution fro state Senate or House

Notice of unpaid bond principal and/or interest Local govt has not distributed taxes owed to other govt.

Fails to provide financial audit or report to state

Fi i l E


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Financial Emergency

State appoints Financial EmergencyManager Amend or override local budget

Make plans for debt repayment May override decisions of local governing

body concerning finances

May renegotiate but not eliminate localcollective bargaining agreements

Accounting and Auditing for local


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Accounting and Auditing for localGovt

All financial records, accounting, audit reports andother reports of public money shall be publicrecords and open to inspection (Art IX $23)

Uniform Budget and Accounting Act (Act 2 of1968) Specifies how local govt must act with regards to

finances, budget and financial reporting to state

P t T Li it ti


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Property Tax Limitations

Headlee Amendment All tax increases must be voted on Tax collections limited to inflation (excluding new

property), if exceeded must rollback millage

Proposal A Taxable Value capped by inflation (Recent CPI 2-3%) Millage votes limited to two per year for same question Cannot rollup millage when growth less than inflation

Headlee/Proposal A Interaction Uncapping of property causes Headlee Rollback

Disproportionate affect on older industrialized areas

H dl A d t 1978


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Headlee Amendment 1978

Voters must approve: Increase in property or other local taxes Creation of new taxes not authorized by law or charter prior

to 1978

Assessed valuation may not increase more than rateof inflation in preceding year Excludes value of new construction Assessed valuation limit= (old assessed valuation *

inflation) + assessed value of new construction

If limit is exceed, rollback of millage (property tax) rateoccurs to enforce limit Limit does not apply to taxes imposed for payment of debt

C l l ti th T B


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Reforms of Proposal A (1994) Established Taxable Value as the base for

levying property tax

Growth in TV capped at the rate of inflation,or 5% per year, whichever is less(Separates SEV from Taxable Value)

Property is uncapped and set equal to SEVwhen property is transferred

Calculating the Tax Base

H R l Citi d Vill


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Home Rule Cities and Villages

20 mills but charter establishes the limit

23 cities levy an income tax; no authority

for other locals to levy income tax

State Funds


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Make up about 1/3 total revenue forlocal units

41.6% of state budget goes to localgovernment; comes from:

Single Business Tax

State Sales Tax Transportation Taxes

Distributed for: School Aid

Social Services

Courts

Mental Health

Law Enforcement

Health Departments

Federal Monies


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Federal Moniesfor Local Governments

Relationship has changed over the years--greater policy impact in certain areas(schools, health care, transportation)

About 25% of state budget and 11% oflocal budgets come from federal level

Money mostly goes to individual citizens

Job training Medicaid, etc.

Cit I T


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City Income Tax

Option for cities22 presently levy this tax Direct tax on income for residents; tax on

earnings for nonresidents

Rate: generally 1% for residents andcorporations; .5% for nonresidents (higherrates for Detroit)

How can YOU be more involved


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How can YOU be more involvedwith local government?

Read, pay attention to local issues Vote in local elections

Attend public meetings

Talk with public officials Get involved with a committee regarding an

issue you care about

Apply for appointment to a local board orcommission

Run for public office

Local Boards & Commissions


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Planning Commission

Zoning Commission

Human RelationsCommission

Housing Commission

TransportationCommission

Road Commission

Parks & RecreationCommission

Fair Board

Mental HealthBoard

Social ServicesBoard

Veterans AffairsBoard

Library Board Board of Review

Local Boards & CommissionsPossibilities for Citizen Involvement

Q estions for Disc ssion


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Questions for Discussion

Does Michigan have too many units of localgovernment?

What do we expect from local government? Arewe willing to pay for those expectations?

Why does local government seem invisible? How have the changing relationships in recent

years between different levels of governmentaffected the local units in your area?

What seem to be the most difficult issues facinglocal governments in your area?

More Questions for Discussion


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More Questions for Discussion

What are some of the possibilities forintergovernmental cooperation? Whatmight be the barriers?

What are the influences and connectionswith non-governmental sectors of thecommunity (foundations, industry, etc.)?

How can citizens play a more active role?

Authors


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Authors

This presentation prepared byDr. EricScorsone MSU Extension, State and LocalGovernment Program ([email protected])

Major source for this workBeth Moore MSU

Extension Specialist and the writings ofDr. LynnHarvey, Professor Emeritus, MSU Dept. ofAgricultural Economics ([email protected])

Additional contributionJohn Amrhein, State and

Local Government Educator, MSU Extension ([email protected])
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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Understanding LocalGov