Frequently Asked Questions (FAQ)
If our city has not adopted a budget and the new fiscal year has begun,
is it legal to pass a monthly appropriation bill to pay the bills?
Have other cities done this?
Your city charter may address this issue. Some charters provide for an “interim
authority” stating that if the council fails to adopt an ordinance
before each new fiscal year, the council, on written request of the mayor,
may make an appropriation for a department’s current expenses in
an amount sufficient to cover the minimum necessary expenses of the affected
department(s) until the appropriation ordinance is in force. Call the
League’s information service for sample charter language for interim
Do we have to have a public hearing before adopting the budget? If so,
do you have samples of these notices?
of 1963 (MCL 141.411 et seq.) requires all local units to hold
a public hearing on a proposed budget. Notice must be published at
least 6 days prior to the hearing in a "newspaper of general circulation" and
must include a statement, printed in 11-point boldfaced type, stating “The
property tax millage rate proposed to be levied to support the proposed
budget will be a subject of this hearing.” Budget hearings held
in accordance with the provisions of the local charter and/or ordinance
will meet this requirement. This hearing will also fulfill the requirement
for a Truth in Taxation hearing. See the One-Pager
Plus on adopting
the budget. A sample notice is the “Plus” on this OPP.
How can our city go about setting up a budget stabilization fund?
A budget stabilization fund is separate and distinct from the city’s
general fund and must be created by ordinance or resolutions adopted
by 2/3 vote of the governing body. Appropriations and expenditures from
the fund need to comply with the requirements of Michigan
1978 Public Act 30, as amended . Among other things, this fund can be appropriated
to cover a general fund deficit. For sample ordinances and a copy of
the act, contact the Municipal Resource Center.
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