Mich. Comp. Laws » Michigan Compiled Laws / Chapter 141 / Act 94 of 1933

Mich. Comp. Laws § 141.121

Rates for services; sufficiency; fixing and revising; pledge for payment of bonds; charges for services as lien on premises; certification of delinquent charges; notice of tenants' responsibility for payment of charges; cash deposit; discontinuance of service to enforce payment of charges; validation of enforcement methods included in ordinance.

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THE REVENUE BOND ACT OF 1933


Act 94 of 1933


141.121 Rates for services; sufficiency; fixing and revising; pledge for payment of bonds; charges for services as lien on premises; certification of delinquent charges; notice of tenants' responsibility for payment of charges; cash deposit; discontinuance of service to enforce payment of charges; validation of enforcement methods included in ordinance.

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

Notes of Decisions
Cited in 21 cases, 1949–2020 · leading case: Sau-Tuk Industries, Inc. v. Allegan County
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Sau-Tuk Industries, Inc. v. Allegan County (2016) michctapp · cites it 43× “, MCL 141.121, is at issue in these cases. Under the RBA, a public corporation—such as a city or county, see MCL 141.”
NL Ventures VI Farmington, LLC v. City of Livonia (2015) michctapp · cites it 15× “[MCL 141.121(3) (emphasis added).] The Bond Act provides that it “shall be liberally construed to effect the purposes hereof.”
Brown Bark I, L.P. v. Traverse City Light & Power Department (2010) miwd · cites it 43× “Mich. Comp. Laws § 141.121 (paragraph breaks added to subsection three) (emphasis added).”
Shefa, LLC v. Oakland County Treasurer (In re Shefa, LLC) (2015) mied · cites it 6× “Mich. Comp. Laws § 141.121 (3). Nothing in the plain language of this provision defines the charges for water or sewerage services as a tax.”
Lyda v. City of Detroit, Mich. (In Re City of Detroit, Mich.) (2016) ca6 “As the bankruptcy court found, this practice is rationally related to maintaining DWSD’s financial stability: Nothing suggests that it is arbitrary for the State of Michigan to require its municipalities to set water rates at the reasonable cost of delivering the service.…”
Kincaid v. City of Flint (2015) michctapp · cites it 2× “The order explained that defendant was required under MCL 141.121 9 to set water and sewer rates that were “suf *86 ficient to cover the costs of operating the water and sewer systems” and that Townsend’s increase was insufficient to meet defendant’s obligation under state law.”
City of Novi v. City of Detroit (1989) mich · cites it 4× “2733(d), [16] MCL 141.121; *430 MSA 5.2751. [17] When the Legislature enacted 1981 PA 89 , it did not concomitantly amend any of these statutory provisions to provide for additional judicial or administrative review of the rate-making process.”
In re Shefa, LLC (2015) mieb · cites it 3× “In support of this argument, the Debtor relies on Mich. Comp. Laws Ann. § 141.121 (3), which states in relevant part: 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…”
Atlas Valley Golf and Country Club, Inc v. Village of Goodrich (1998) michctapp · cites it 2× “The Legislature also granted villages the general authority to “purchase, acquire, construct, improve, enlarge, extend or repair” a sewer, to “own, operate and maintain the same, within or without its corporate limits,” and to furnish the services to users within and without its…”
in Re Petition of Allegan County Treasurer for Foreclosure (2016) michctapp · cites it 41× “, MCL 141.121, is at issue in these cases. Under the RBA, a public corporation—such as a city or county, see MCL 141.”
Walinske v. Detroit-Wayne Joint Building Authority (1949) mich “The revenue bond act, CL 1948, § 141.121 (Stat Ann 1949 Rev § 5.2751), distinctly provides that the rates may be fixed and revised from time to time and shall provide sufficient return to pay the expenses of maintenance, payment of interest and principal on the bonds as they…”
Ripperger v. City of Grand Rapids (1954) mich “” CL 1948, § 141.121 (Stat Ann 1949 Rev § 5.2751). *685 Tlie commission of the city of Grand Rapids decided that the charge for sewage services would be based upon the water metered for the winter quarter, and so provided in the ordinance.”
Show all 21 citing cases →
— Mich. Comp. Laws § 141.121(1) — 1 case
Brown Bark I, L.P. v. Traverse City Light & Power Department (2010) miwd “Mich. Comp. Laws § 141.121 (paragraph breaks added to subsection three) (emphasis added).”
— Mich. Comp. Laws § 141.121(3) — 9 cases
Sau-Tuk Industries, Inc. v. Allegan County (2016) michctapp “, MCL 141.121, is at issue in these cases. Under the RBA, a public corporation—such as a city or county, see MCL 141.”
NL Ventures VI Farmington, LLC v. City of Livonia (2015) michctapp “[MCL 141.121(3) (emphasis added).] The Bond Act provides that it “shall be liberally construed to effect the purposes hereof.”
Brown Bark I, L.P. v. Traverse City Light & Power Department (2010) miwd “Mich. Comp. Laws § 141.121 (paragraph breaks added to subsection three) (emphasis added).”
Shefa, LLC v. Oakland County Treasurer (In re Shefa, LLC) (2015) mied “Mich. Comp. Laws § 141.121 (3). Nothing in the plain language of this provision defines the charges for water or sewerage services as a tax.”
In re Shefa, LLC (2015) mieb “In support of this argument, the Debtor relies on Mich. Comp. Laws Ann. § 141.121 (3), which states in relevant part: 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…”
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