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untanglingwebs
El Supremo
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PDF]Water and Sewer Liens - Michigan Municipal League
https://www.mml.org/resources/publications/one_pagers/opp_water.pdf
against property for unpaid water or sewer bills. Permissive ... The powers granted by the act may be exercised even if no bonds are ... annually to the proper tax assessing officer who shall enter the lien on the next tax roll against the premises ...
Last edited by untanglingwebs on Sat May 06, 2017 9:13 am; edited 1 time in total |
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Sat May 06, 2017 9:11 am |
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untanglingwebs
El Supremo
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Water and Sewer Liens
Introduction
There are two Michigan statutes that provide for the authority of a municipality to impose a lien against property for unpaid water or sewer bills.
Permissive Lien
MCL 141.121 (1933 PA 94, as amended by 1978 PA 216)
This statute provides that charges for services furnished to a premises
may be a lien on the premises. The provision is part of the Revenue Bond Act of 1933. The powers granted by the act may be exercised even if no bonds are issued under the act. Charges which are delinquent for 6 months or more may be certified annually to the proper tax assessing officer who shall enter the lien on the next tax roll against the premises to which the services shall have been rendered. The charges shall be collected and the lien enforced in the same manner as provided for the collection of taxes assessed upon the roll and the
enforcement of a lien for the taxes. The time and manner of certification and other details shall be prescribed by the ordinance adopted by the governing body. A municipality must adopt an ordinance in order to avail itself of this statute. The act also contains special provisions if a tenant is responsible for the payment of the charges. The local unit of government may also discontinue service, in the case of water and sewer.
Mandatory Lien
MCL 123.162 (1939 PA 178)
This statute provides that a municipality which operates a water or sewage system shall have as security a lien upon the premises for the service was supplied. The lien is effective immediately upon distribution of the service. It must be enforced within 3 years of the effective date of the lien. The lien may be enforced by a municipality in a manner prescribed by charter of the municipality, by the laws of the state, or by an ordinance of the municipality. It is not necessary for the municipality to adopt an ordinance referencing the act. A municipality may also discontinue service. The act contains an exception to the act by which a landlord may give notice to the municipality of a lease that obligates a tenant to the charges. The act specifically states that it does not repeal any existing statutory charter or ordinance provisions for the assessment or collection of charges by a municipality.
See
Saginaw Landlords Association v City of Saginaw
, No. 222256, (unpublished opinion of Michigan Court
of Appeals) (Nov. 2, 2001). Thanks to Tom Fancher,
chief assistant city attorney, Saginaw for assistance
with this One-Pager Plus. Tom represented the city in the Saginaw Landlords
case and indicates he has made a request that the opinion be published which would grant the decision precedential effect. |
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Sat May 06, 2017 9:12 am |
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untanglingwebs
El Supremo
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[PDF]MUNICIPAL WATER LIENS - Michigan Legislature - State of Michigan
https://www.legislature.mi.gov/.../documents/mcl/pdf/mcl-Act-178-of-1939.pdf
AN ACT to provide for the collection of water or sewage system rates, ... or other building or any premises, lot or lots, or parcel or parcels of land, a lien upon ... by this act shall, after June 7, 1939, have priority over all other liens except taxes. |
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Sat May 06, 2017 9:23 am |
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untanglingwebs
El Supremo
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MUNICIPAL WATER LIENS
Act 178 of 1939
AN ACT to provide for the collection of water or sewage system rates, assessments, charges, or rentals;
and to provide a lien for water or sewage system services furnished by municipalities as defined by this act.
History: 1939, Act 178, Imd. Eff. June 8, 1939;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
The People of the State of Michigan enact:
123.161 Definitions.
Sec. 1. As used in this act:
(a) “Municipality” means a county, city, township, village, or metropolitan district.
(b) “Person” means an individual, firm, partnership, association, or corporation which is the owner or occupant of any house or other building or any premises, lot, or parcel of land.
(c) “Sewage system” means a sewage disposal system, including sanitary sewers, combined sanitary and storm sewers, plants, works, instrumentalities, and properties used or useful in connection with the collection, treatment, or disposal of sewage or industrial wastes.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.161;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
***** 123.162 THIS SECTION IS AMENDED EFFECTIVE APRIL 4, 2017: See 123.162.amended *****
123.162 Municipality operating water distribution system or sewage system; lien as security for collection of assessments, charges, or rentals; effective date and enforceability of lien.
Sec. 2. A municipality which has operated or operates a water distribution system or a sewage system for the purpose of supplying water or sewage system services to the inhabitants of the municipality, shall have as security for the collection of water or sewage system rates, or any assessments, charges, or rentals due or to become due, respectively, for the use of sewage system services or for the use or consumption of water supplied to any house or other building or any premises, lot or lots, or parcel or parcels of land, a lien upon the house or other building and upon the premises, lot or lots, or parcel or parcels of land upon which the house or other building is situated or to which the sewage system service or water was supplied. This lien shall become effective immediately upon the distribution of the water or provision of the sewage system service to the premises or property supplied, but shall not be enforceable for more than 3 years after it becomes effective.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.162;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
***** 123.162.amended THIS AMENDED SECTION IS EFFECTIVE APRIL 4, 2017 *****
123.162.amended Municipality operating water distribution system or sewage system; lien as security for collection of assessments, charges, or rentals; effective date and enforceability of lien.
Sec. 2. A municipality that has operated or operates a water distribution system or a sewage system for the purpose of supplying water or sewage system services to the inhabitants of the municipality has as security for the collection of water or sewage system rates, or any assessments, charges, or rentals due or to become due, respectively, for the use of sewage system services or for the use or consumption of water supplied to any house or other building or any premises, lot or lots, or parcel or parcels of land, a lien upon the house or other building and upon the premises, lot or lots, or parcel or parcels of land upon which the house or other building is situated or to which the sewage system service or water was supplied. This lien becomes effective immediately upon the distribution of the water or provision of the sewage system service to the premises oproperty supplied, but shall not be enforceable for more than 5 years after it becomes effective.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.162;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981;Am. 2016, Act
421, Eff. Apr. 4, 2017.
123.163 Manner of enforcing lien.
Sec. 3. The lien created by this act may be enforced by a municipality in the manner prescribed in the
charter of the municipality, by the general laws of the state providing for the enforcement of tax liens, or by an ordinance duly passed by the governing body of the municipality.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.163;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
Rendered Thursday, April 27, 2017 Page 1 Michigan Compiled Laws Complete Through PA 22 of 2017
Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov
123.164 Official records of municipality as notice of pendency of lien.
Sec. 4. The official records of the proper officer, board, commission, or department of any municipality having charge of the water distribution system or sewage system shall constitute notice of the pendency of this lien.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.164;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
123.165 Priority of lien; applicability of act where lease provides lessor not liable for payment of bills; affidavit.
Sec. 5. The lien created by this act shall, after June 7, 1939, have priority over all other liens except taxes or special assessments whether or not the other liens accrued or were recorded before the accrual of the water or sewage system lien created by this act. However, this act shall not apply if a lease has been legally
executed, containing a provision that the lessor shall not be liable for payment of water or sewage system bills accruing subsequent to the filing of the affidavit provided by this section. An affidavit with respect to the execution of a lease containing this provision shall be filed with the board, commission, or other official in charge of the water works system or sewage system, or both, and 20 days' notice shall be given by the lessor of any cancellation, change in, or termination of the lease. The affidavit shall contain a notation of theexpiration date of the lease.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.165;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
123.166 Discontinuing service or instituting action for collection; invalidation or waiver of lien.
Sec. 6. A municipality may discontinue water service or sewage system service from the premises against which the lien created by this act has accrued if a person fails to pay the rates, assessments, charges, or rentals for the respective service, or may institute an action for the collection of the same in any court of competent jurisdiction. However, a municipality's attempt to collect these sewage system or water rates, assessments, charges, or rentals by any process shall not invalidate or waive the lien upon the premises.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.166;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981.
123.167 Construction of act.
Sec. 7. This act shall not repeal any existing statutory charter or ordinance provisions providing for the assessment or collection of water or sewage system rates, assessments, charges, or rentals by a municipality, but shall be construed as an additional grant of power to any power now prescribed by other statutory charter or ordinance provisions, or as a validating act to validate existing statutory or charter provisions creating liens which are also provided for by this act.
History: 1939, Act 178, Imd. Eff. June 8, 1939;CL 1948, 123.167;Am. 1981, Act 132, Imd. Eff. Oct. 7, 1981. |
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Sat May 06, 2017 9:34 am |
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untanglingwebs
El Supremo
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From City of flint ordinances:
Bookmark§ 46-50 LIEN WHEN CHARGES DELINQUENT; RIGHT OF ENTRY; COST OF CONNECTIONS.
(a) Charges for services furnished by the water supply and sewage disposal system to any premises located within the City of Flint together with delinquency fees, late payment charges and penalty and service charges shall be a lien thereon, and during April of each year the City Treasurer shall certify any such charges which, as of April 1 of that year, have been delinquent six months or more, to the City Assessor who shall enter the same upon the City tax rolls of that year against the premises to which the services shall have been rendered. Such charges shall be collected and the lien shall be enforced in the same manner as provided in respect to taxes assessed upon such roll; provided, however, the Director of Finance shall establish a dollar limit, below which charges shall not be added to the real property tax roll. The dollar limit so established shall take into consideration the cost of placing the charges onto the real property tax roll; provided further, that when a tenant is responsible for the payment of any such charge against the premises, and the City Council is notified in writing, with a true copy of the lease for the premises attached which fulfills the requirements of all ordinances, then no such charge shall become a lien against the premises from and after the date of the notice. However, the City Council may require proof that the tenant in possession has been notified. No further service shall be rendered by the water supply and sewage disposal system to the premises until a cash deposit not to exceed three times the average periodic charge to such commercial or industrial premises or $100.00 for such single-unit residential property to guarantee the prompt payment of all service charges and an inspection to verify that the return to the City of the water meter is in good condition. Deposits so made shall draw such rate of interest as may be fixed by the City Council from time to time, but such rate shall not exceed the rate of return which the City is then receiving from the investment of the deposits.
(b) No free service shall be furnished by the system to the City or to any person, firm or corporation, public or private, or to any agency or instrumentality.
(c) The City reserves unto itself and its authorized agents the right to enter the owner’s premises as provided by law to inspect, disconnect and repair the City’s water supply and sewage disposal system, including meters and measuring devices installed as provided herein, and reserves the right for any violation of this article.
(d) The cost of water and sewer service connection for the City water mains or sewer lines to private premises shall be the responsibility of the property owner up to the property line, and the City shall install such connection within the right-of-way.
(e) The City shall terminate water service after 60 days “past due” payment and no later than 90 days.
(Ord. 1778, passed 6-29-1964; Ord. 2552, passed 4-12-1976; Ord. 2579, passed 1-10-1977; Ord. 2985, passed 3-24-1986; Ord. 3003, passed 7-28-1986; Ord. 3218, passed 10-12-1992; Ord. 3232, passed 4-26-1993; Ord. 3313, passed 11-13-1995; Ord. 3510, passed 3-10-2003; Ord. 3630, passed 12-13-2004; Ord. 3682, passed 9-25-2006; Ord. 3717, passed 6-9-2008) |
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Sat May 06, 2017 9:42 am |
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untanglingwebs
El Supremo
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Bookmark§ 46-50 LIEN WHEN CHARGES DELINQUENT; RIGHT OF ENTRY; COST OF CONNECTIONS.
(a) Charges for services furnished by the water supply and sewage disposal system to any premises located within the City of Flint together with delinquency fees, late payment charges and penalty and service charges shall be a lien thereon, and during April of each year the City Treasurer shall certify any such charges which, as of April 1 of that year, have been delinquent six months or more, to the City Assessor who shall enter the same upon the City tax rolls of that year against the premises to which the services shall have been rendered. Such charges shall be collected and the lien shall be enforced in the same manner as provided in respect to taxes assessed upon such roll; provided, however, the Director of Finance shall establish a dollar limit, below which charges shall not be added to the real property tax roll. The dollar limit so established shall take into consideration the cost of placing the charges onto the real property tax roll; provided further, that when a tenant is responsible for the payment of any such charge against the premises, and the City Council is notified in writing, with a true copy of the lease for the premises attached which fulfills the requirements of all ordinances, then no such charge shall become a lien against the premises from and after the date of the notice. However, the City Council may require proof that the tenant in possession has been notified. No further service shall be rendered by the water supply and sewage disposal system to the premises until a cash deposit not to exceed three times the average periodic charge to such commercial or industrial premises or $100.00 for such single-unit residential property to guarantee the prompt payment of all service charges and an inspection to verify that the return to the City of the water meter is in good condition. Deposits so made shall draw such rate of interest as may be fixed by the City Council from time to time, but such rate shall not exceed the rate of return which the City is then receiving from the investment of the deposits.
(b) No free service shall be furnished by the system to the City or to any person, firm or corporation, public or private, or to any agency or instrumentality.
(c) The City reserves unto itself and its authorized agents the right to enter the owner’s premises as provided by law to inspect, disconnect and repair the City’s water supply and sewage disposal system, including meters and measuring devices installed as provided herein, and reserves the right for any violation of this article.
(d) The cost of water and sewer service connection for the City water mains or sewer lines to private premises shall be the responsibility of the property owner up to the property line, and the City shall install such connection within the right-of-way.
(e) The City shall terminate water service after 60 days “past due” payment and no later than 90 days.
(Ord. 1778, passed 6-29-1964; Ord. 2552, passed 4-12-1976; Ord. 2579, passed 1-10-1977; Ord. 2985, passed 3-24-1986; Ord. 3003, passed 7-28-1986; Ord. 3218, passed 10-12-1992; Ord. 3232, passed 4-26-1993; Ord. 3313, passed 11-13-1995; Ord. 3510, passed 3-10-2003; Ord. 3630, passed 12-13-2004; Ord. 3682, passed 9-25-2006; Ord. 3717, passed 6-9-2008) |
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Sat May 06, 2017 9:47 am |
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untanglingwebs
El Supremo
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Flint lead-water crisis: 8,000 residents face tax liens for...
qz.com/975934/flint-lead-water-crisis-8000-residents...
1 day ago ... Thousands of people in Flint, Michigan, still grappling with the effects of a lead- poisoned drinking water crisis could face tax liens and even ...
SERIOUSLY?
Flint wants residents to pay for their poisoned water—or face losing their homes
A sign which reads ' Do Not Drink Until Further Notices' next to a water dispenser at North Western high school in Flint, a city struggling with the effects of lead-poisoned drinking water, in Michigan
A sign is seen next to a water dispenser in Flint, Michigan in 2016. (REUTERS/Carlos Barria)
Share
Written by
Elisabeth Ponsot
May 04, 2017
Thousands of people in Flint, Michigan, still grappling with the effects of a lead-poisoned drinking water crisis could face tax liens and even foreclosure on their homes for unpaid water bills.
More than 8,000 residents have received notices that past-due water bills—categorized as those left unpaid for six months or more—must be resolved to avoid a lien being placed on their property, the city said in a statement.
The billings cover two years and total more than $5 million in delinquent water and sewer charges, the city said.
The move comes less than two months after a federal judge approved a $97 million settlement from the state of Michigan to replace water lines in at least 18,000 households.
Residents have said they should not have to bear the cost for water they could not drink. “We don’t pay for poison,” activist Melissa Mays told MLive.com in February. And for those who did pay their bills—some are asking for their money back. “We deserve a refund like any normal consumer—if it’s a faulty product you refund the water paid,” Mays said.
Virginia Tech researchers who took samples of the water in nearly 300 homes in 2015 found some contained lead levels high enough to meet the EPA’s definition of “toxic waste.” Today, the water in Flint remains unsafe to drink without a filter, according to results released in April.
The liens threatened by the city, if implemented, represent the first step in making a claim on an individual’s property. Liens kick off a legal process that could ultimately result in people losing their homes.
Flint residents face some of the highest water bills in the US. To bring some relief, Gov. Rick Snyder approved a $30 million plan last year to reimburse residents for a portion of payments made since April 2014 on water used for drinking, bathing and cooking.
“Flint residents should not have to pay for water they cannot drink,” he said then. The subsidies ended in February, sparking local protests.
Now, officials say they are simply following the routine procedure for past-due billing. Once payments are missed on water or sewer accounts for more than six months, an ordinance requires the treasurer to transfer the lien to a homeowner’s property tax bill.
“We must follow the law,” mayor Karen Weaver said. “I understand the concerns that have been raised and I am working to see if any changes or something can be done to help those affected by this, especially given the extraordinary circumstances we have endured due to the water crisis.”
Residents have have until May 19 to make a payment and avoid a lien, the city said, and until next February to pay their balance in full.
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Sat May 06, 2017 9:56 am |
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untanglingwebs
El Supremo
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Now, officials say they are simply following the routine procedure for past-due billing. Once payments are missed on water or sewer accounts for more than six months, an ordinance requires the treasurer to transfer the lien to a homeowner’s property tax bill.
“We must follow the law,” mayor Karen Weaver said. “I understand the concerns that have been raised and I am working to see if any changes or something can be done to help those affected by this, especially given the extraordinary circumstances we have endured due to the water crisis.” |
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Sat May 06, 2017 9:58 am |
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untanglingwebs
El Supremo
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Treasurer Deb Cherry initially refused to add these water liens on the taxes. This will be a hardship on everyone as it has been reported to RTAB that one-third of the homes with delinquent water bills are vacant. Properties not sold or sold for less than the taxes and liens after a period of time have these amount shifted back to the City for reimbursement to the county. Meanwhile the county must come up with the additional funds to cover paying the city for these debts.
As noted Flint has some of the highest water bills in the state. Are they really charging only for the cost of providing water?
Eric Mays was on the radio telling the public it was a matter of changing the ordinance. I think we need a lawyer that specializes in utilities to determine that issue. |
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Sat May 06, 2017 10:07 am |
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