Sec. 21.
(1) Rates for services furnished by a public improvement shall be fixed before the issuance of the bonds. The rates shall be sufficient to provide for all the following:
(a) The payment of the expenses of administration and operation and the expenses for the maintenance of the public improvement as may be necessary to preserve the public improvement in good repair and working order.
(b) The payment of the interest on and the principal of bonds payable from the public improvements when the bonds become due and payable.
(c) The creation of any reserve for the bonds as required in the ordinance.
(d) Other expenditures and funds for the public improvement as the ordinance may require.
(2) The rates shall be fixed and revised by the governing body of the borrower so as to produce the amount described in subsection (1). The borrower shall covenant and agree in the ordinance authorizing the issuance of the bonds and on the face of each bond to maintain at all times the rates for services furnished by the public improvement sufficient to provide for the amount described in subsection (1). Rates pledged for the payment of bonds that are fixed and established pursuant to a contract or lease shall not be subject to revision or change, except in the manner provided in the lease or contract.
(3) Charges for services furnished to a premises may be a lien on the premises, and those charges delinquent for 6 months or more may be certified annually to the proper tax assessing officer or agency who shall enter the lien on the next tax roll against the premises to which the services shall have been rendered, and the charges shall be collected and the lien shall be enforced in the same manner as provided for the collection of taxes assessed upon the roll and the enforcement of the lien for the taxes. The time and manner of certification and other details in respect to the collection of the charges and the enforcement of the lien shall be prescribed by the ordinance adopted by the governing body of the public corporation. However, in a case when a tenant is responsible for the payment of the charges and the governing body is so notified in writing, the notice to include a copy of the lease of the affected premises, if there is one, then the charges shall not become a lien against the premises after the date of the notice. In the event of filing of the notice, the public corporation shall render no further service to the premises until a cash deposit in a sum fixed in the ordinance authorizing the issuance of bonds under this act is made as security for the payment of the charges. In addition to any other lawful enforcement methods, the payment of charges for water service to any premises may be enforced by discontinuing the water service to the premises and the payment of charges for sewage disposal service or storm water disposal service to a premises may be enforced by discontinuing the water service, the sewage disposal service, or the storm water disposal service to the premises, or any combination of the services. The inclusion of these methods of enforcing the payment of charges in an ordinance adopted before February 26, 1974, is validated.
History: 1933, Act 94, Imd. Eff. May 26, 1933 ;-- Am. 1941, Act 210, Imd. Eff. June 16, 1941 ;-- Am. 1946, 1st Ex. Sess., Act 23, Eff. June 7, 1946 ;-- Am. 1947, Act 204, Imd. Eff. June 13, 1947 ;-- CL 1948, 141.121 ;-- Am. 1974, Act 27, Imd. Eff. Feb. 26, 1974 ;-- Am. 1978, Act 216, Imd. Eff. June 5, 1978 ;-- Am. 1992, Act 305, Imd. Eff. Dec. 21, 1992
Structure Michigan Compiled Laws
Chapter 141 - Municipal Financing
Act 94 of 1933 - The Revenue Bond Act of 1933 (141.101 - 141.140)
Section 141.101 - Short Title; Revenue Bond Act of 1933.
Section 141.102 - Construction of Act.
Section 141.103 - Definitions.
Section 141.105 - Estimate of Cost and Period of Usefulness.
Section 141.108 - Lien on Revenue in Favor of Bondholders.
Section 141.109 - Statutory Lien on Net Revenues; Duration; Enforcement.
Section 141.110 - Receiverships for Public Improvements.
Section 141.111 - Bonds; Application of Other Laws and Charters.
Section 141.112a - Bonds Subject to Revised Municipal Finance Act.
Section 141.112b - Bulletins; Issuance by Department of Treasury.
Section 141.113 - Bonds; Statement on Face of Bond or on Face of Interest Coupon.
Section 141.114 - Bonds; Qualities of Negotiable Instruments.
Section 141.115 - Bonds; Deposit and Investment of Sale Proceeds.
Section 141.117 - Bonds; Validity of Signatures.
Section 141.118 - Charges for Services; Providing Medical Care Without Charge or at Reduced Rates.
Section 141.119 - Additional Bonds.
Section 141.120 - Revenue Refunding Bonds.
Section 141.120a - Combined Public Improvements; Bonds; Revenues Pledged; Retirement.
Section 141.120c - Parking Revenue Bonds; Special Assessments on Benefited Properties.
Section 141.122 - Accounting of Revenues; Order of Priority; Disposition of Surplus.
Section 141.124a - Deposit Accounts.
Section 141.125 - Fixing Dates of Operating Year for Public Improvement.
Section 141.126 - Receiving Fund Surplus; Deposit.
Section 141.127 - Issuance of Bonds by Public Corporation; Applicable Laws.
Section 141.128 - Effect of Approval Permitting Issuance of Bonds.
Section 141.129 - Service Rates Not Subject to Supervision by State Agency.
Section 141.130 - Books of Record and Account; Annual Audit Report.
Section 141.131 - Redemption of Bonds Before Maturity.
Section 141.133a - Validation of Bonds Heretofore Issued.
Section 141.133b - Violation of MCL 168.1 to 168.992 Applicable to Petitions; Penalties.
Section 141.134 - Liberal Construction of Act.
Section 141.136 - Immediate Necessity.
Section 141.137 - Condemnation of Property.
Section 141.138 - Trustee; Appointment; Powers and Duties; Pledging of Trust Funds.