Michigan Laws 141.937 – Duties of municipality receiving loan; failure to comply with subsection (1) and 5-year plan; definitions; exception
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Michigan Laws 141.937
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Board: means the local emergency financial assistance loan board created under section 2. See Michigan Laws 141.931
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: means , unless otherwise provided in this act, the fiscal year of the municipality applying for a loan under this act. See Michigan Laws 141.931
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Municipality: means a county, city, village, or township in this state. See Michigan Laws 141.931
- Statute: A law passed by a legislature.
(1) A municipality that receives a loan under this act shall perform all of the following:
(a) Except as otherwise provided in this subdivision, employ a full-time professional administrator or contract with a person with expertise in municipal finance and administration to direct or participate directly in the management of the municipality’s operations until otherwise ordered by the board. If the municipality is in receivership under the local financial stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, or a successor statute, the emergency manager may perform the functions of the full-time professional administrator under this subdivision.
(b) Not more than 6 months after receiving a loan and semiannually after that date for the period the loan is outstanding, submit to the board an evaluation of the performance of the municipality against the 5-year plan submitted under section 4(1).
(c) Submit all of the following to the board on a quarterly basis:
(i) A statement of actual revenues received in the last quarter and in the current fiscal year to date.
(ii) A statement of total revenues estimated to be received by the municipality in the current fiscal year.
(iii) A statement of expenditures made and encumbrances entered into by the municipality in the last quarter and in the current fiscal year to date.
(iv) A statement of revenues that were estimated to be received and expenditures that were estimated to be made during the current fiscal year and through the end of the last quarter.
(v) A balance sheet indicating whether total estimated expenditures for the current fiscal year and for the last quarter exceed the total estimated revenues for the current fiscal year and for the last quarter, respectively.
(d) Submit the general appropriations act of the municipality, and any amendments to that act, adopted under the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a, or any equivalent report as may be required by the board if the municipality is not required to adopt a general appropriations act.
(e) Submit any budget change in the current fiscal year or any amendment to the general appropriations act of the municipality for the current fiscal year to the board before adoption.
(f) Submit any budget for the ensuing fiscal year or the general appropriations act of the municipality for the ensuing fiscal year to the board before adoption.
(g) Certify that the municipality has fully complied with all statutory requirements concerning use of the uniform chart of accounts and audits.
(2) If the state treasurer determines that a municipality is not in compliance with all of the requirements under subsection (1) and with the 5-year plan submitted under section 4(1), the state treasurer may modify the terms of the loan to require a higher interest rate or to accelerate the repayment of the loan.
(3) As used in this section, “expenditure” and “revenue” mean those terms as defined in section 2c and 2d of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.422c and 141.422d.
(4) Subsection (1) does not apply to a loan authorized under section 3(2) or (3).