View the PDF version Google Docs PDF Viewer
LEGISLATIVE POLICY COMMITTEE MEETING
WEDNESDAY, FEBRUARY 28, 2024
5:30 P.M.
MUSKEGON CITY HALL
ROOM 204
933 TERRACE STREET
MUSKEGON Ml 49440
AGENDA
I. Call to Order
II. Approval of Minutes for November 29, 2023
Ill. Old Business
IV. New Business
1) Legislative Update - Pete Wills
2) Short Term Rental Discussion - Jonathan Seyferth
3) Lake Front PUD Standards-Jonathan Seyferth
V. Adjourn
CITY OF MUSKEGON
LEGISLATIVE POLICY COMMITTEE
Minutes
Monday, November 29, 2023
5:30 pm
Present: Commissioners St. Clair, Johnson, Gorman, Geiman, and Emory.
Absent: Commissioner Hood and Ramsey.
Approval of Minutes
Commissioner St. Clair moved, Commissioner Emory seconded, to approve the minutes of
August 23, 2023.
MOTION CARRIED.
Legislative Update - Pete Wills
Pete Wills reviewed several State policy issues including House Bill 4861 that would allow the
County to sell 97 E. Apple to Kids Food Basket and House Bill 5074 that would allow the LDF A
to retroactively approve school tax revenue captures for a period of five years for certified
technology parks - known as SmartZones.
Fishbeck is doing a study on the Greenhouse gas footprint.
The Mayor asked about House Bill 5088-93 that would create a water rate affordability program;
shutoff protection act for low-income residents.
Pete also indicated the grants that were issued for $1.6 million were going well overall.
Water Fund Presentation and Discussion-Dan VanderHeide
Dan VanderHeide gave a water fund presentation. He explained the water fund is in need of a
10% increase in user fees beginning in February 2024 and again in Fiscal years 25 and 26/27.
Several projects have been postponed due to funding. Roof repairs to the Water Filtration Plant
must happen this year due to the poor condition.
Charter Park Discussion - Commissioner Emory
Commissioner Emory requested the City Commission consider adding Pere Marquette Park Gas
Company lot 733 and OSR to the charter parks.
Adjourn at 7:21 pm.
Ann Marie Meisch, MMC
City Clerk
· • ·.. US GO
State/ Federal Report, February 2024
STATE POLICY ISSUES
Bill# Sponsor Detail Status Position
HB 4002 Shannon Increases the Earned Income Tax Credit (EITC) from 6% to 30%. Senate Committee NA
HB 4003 Hoskins Elliott-Larsen Civil Rights Act; include sexual orientation & gender identity or expression as a Senate Committee NA
protected category.
HB 4274- O'Neal, Create Revenue Sharing Trust Fund; SB 182-183; the bills would dedicate 8% of the 4% sales tax and Senate Comm ittee, 11/ 2 MML sup port
4275 Tisdel place it in a trust fund specifically for statutory revenue sharing; within the Trust Fund it creates a
new funding category that would restore payments to 1091 townships and 44 villages currently not
receiving statutory revenue sharing at a rate of 1% of the total available fund ing; it distributes the
remaining balance to cities, villages, townships, and counties currently receiving statutory revenue
sharing payments in the same proportion as the FY23/24 budget.
HB 4605 Shannon Provide for distribution of sales ta x revenue into public safety and violence prevention fund ; 1.5% of Senate 11/ 8
the 4% of sales ta x revenue collected.
HB 4606 Farhat Create public safety and violence prevention fund Senate 11/ 8
HB 4688 Haadsma Makes minimum staffing levels for all local units a mandatory topic of collective bargaining. House floor, 11/ 2 MML
opposed
HB 4878 Aiya sh Would create the Michigan Fair Chance Access to Housing Act to generally prohibit a landlord from House Local Gov
using an individual's criminal record when evaluating the individual' s rental appl ication at any stage 10/5/23
in the application process, except as provided by the act or under federal or state law.
HB 4919 Dievendorf Would create the Bill of Rights for the Homeless Act, which would provide that homeless individuals House Loca l Gov
must be granted the same rights and privileges as any other citizen in Ml and would prohibit the 10/5/23
denial of an individual's rights, privileges, or access to public services solely because the individual is,
or is perceived to be, homeless.
HB 4965 Video Services Act; HB 4965 exempts providers of streaming services from paying rent for use of the Senate Committee
public ROW, otherwise shouldered by the ta xpayer, and its obligation to support 10/24/23
1
public/educational/government access. The net effect of this will be a loss of some, most or perhaps
all of the over $350,000 currently received by the Muskegon in cable/video franchise fees which go
to the General Fund, plus PEG support for local programming which includes cable/video access to
government meetings, without which we lose a critical component of local government
transparency.
HB 5088- Create water rate affordability program; shutoff protection act, etc. Bill package would establish a House Natural
93 low-income water residential affordability program; funds would be used to aid low-income Resources, Env,
residents for expenses related to water and sewer service; would establish standards and criteria for Tourism
when a water service provider can shut off water supply; would regulate rental agreements to allow
a tenant in a metered or sub-metered rental property to request that a copy of the water and sewer
bill be sent to both landlord and tenant.
SB 205- Cavanagh Prohibit housing discrimination based on source of income House Judiciary
207
SB 480 • Land Division Act - It's an amendment to the Land Division Act that would increase the allowable House Local Gov
number of parcels that the first 10 acres of a parent parcel or tract could be divided into. Currently
that number is four. The amendment would increase it from four to 20.
2
STATE LEGISLATION
Governor's FY25 State Budget
The proposed budget is less than last year's budget that was filled with significant one-time resources,
and totals $80.7 billion. '
Municipal issues, including revenue sharing, transportation and water infrastructure funding, housing, and
economic development, would receive increases in the proposed budget recommendation .
Revenue Sharing - constitutional revenue sharing is seeing an uptick with regard to increases in state
sales tax revenue; statutory revenue sharing would receive a proposed 10% increase (5% on-going and 5%
one-time) .
o $1.1 billion in estimated Constitutional Revenue Sharing (sales tax revenue) payments made only
to cities, villages, and townships {CVTs). This represents a $5.4 million increase over the fiscal year
2024 enacted appropriation.
o $55 million total increase in Statutory Revenue Sharing (sales tax revenue) payments, an overall
10% increase compared to enacted fiscal year 2024 ongoing statutory appropriations. This total
increase represents the following :
• A 5% ongoing increase in general statutory revenue sharing compared to enacted fiscal
year 2024 ongoing statutory appropriations .
■ A 3% one-time payment for local units that have fully obligated their local fiscal recovery
funds by Oct.1, 2024, compared to enacted fiscal year 2024 ongoing statutory
appropriations.
• A 2% one -time payment specifically designated for local public safety initiatives,
compared to enacted fiscal yea r 2024 ongoing statutory appropriations. These initiatives
may include public safety employee recruitment, retention, and training, as well as public
safety equipment and infrastructure improvements.
o City, Village, and Township Revenue Sharing total increase is $29.4 million ($14.7 million related
to 5% ongoing, $8.8 million related to the one-time local fiscal recovery fund incentive, and $5.9
million one-time related to public safety) . Total fiscal year 2025 statutory payments for CVTs are
recommended at $322.9 million.
Department of Environment, Great Lakes, and Energy
o $40 million for Water Infrastructure Replacement and Improvements (general fund) to provide
loans and grants to local communities for water infrastructure. These projects will augment
replacement and upgrade efforts funded through the Infrastructure Investment and Jobs Act to
ensure that Michigan fully leverages eve ry available federal dollar.
o $25 million for Electric Vehicle Charging Station Expansion (general fund) to install charging
stations at multi-family complexes and commercial parking lots.
o $20 million for Transitioning Michigan's Fleets to the Green Economy (general fund) to provide
grants to municipalities, transit authorities, and key infrastructure hubs to replace medium and
heavy-duty fleet vehicles with emission free alternatives such as battery EVs and hydrogen fuel
based vehicles .
o $15 .3 million for Green Infrastructure Projects (general fund) to assist municipalities in mitigating
the impacts from and adapting to climate change through the installation of stormwater diversion
infrastructure that utilizes the restoration of natural site hydrology, implementation of ecological
water absorption, and stormwater reuse.
3
Department of Labor and Economic Opportunity
o $50 million for the Housing and Community Development Program to continue alleviating
affordable housing needs across the state and revitalize downtown areas in Michigan.
o $50 million for the Revitalization and Placemaking Program for grants that will be used to
rehabilitate vacant, underutilized, blighted, and historic structures and develop place-based
infrastructure associated with traditional downtowns, social-zones, outdoor dining, and other
public spaces.
Department of Transportation
o $397 .6 million increase for Michigan roads and bridges, including:
• $247.6 million to support revenue increases for state and local roads, highways, and
bridges (federal and state restricted funds). This reflects an additional $102.7 million of
federal funding, with the remaining $144.9 million attributable to net increases in
baseline state restricted revenues. Cities, villages, and county road commissions will
receive $127 .2 million of additional road and bridge construction funds, with a $123.4
million increase for state-owned roads.
• $150 million for road and bridge projects (general fund) . An estimated $95 million will be
used to ensure that Michigan fully matches all federal highway aid made available under
the Infrastructure Investment and Jobs Act of 2021. The remaining $55 million will
support local bridge and culvert projects across the state.
• $74.8 million of additional ongoing support for Transit and Rail Programs (federal and
state restricted funds). There is a $5 million increase in operating support to local transit
agencies.
• $30 million for Transit Innovation Grants (general fund) to support technical and other
grant assistance for local transit agencies to spur innovation to connect Michiganders
with new public transportation options that link communities.
Michigan State Police
o $5 million so local governments can hire or retain more police officers.
Military and Veterans Affairs
o $1.5 million in grants to non-profit organizations dedicated to reducing veteran homelessness.
Documents related to the Governor's recommendations are linked below if you're interested in further
information about the budget proposal:
• FY25 Executive Budget Recommendation Presentation
• FY25 Executive Recommendation Press Release
• FY25 Budget Book
• FY25 General Omnibus
• FY25 Education Omnibus
• FY25 General Briefing Issue Papers
• FY25 Education Issue Papers
• FY25-29 State Strategic Plan
Governor Creates New Clean Energy Transition Office
Governor creates new Community and Worker Economic Transition Office within the Department of
Labor and Economic Opportunity (LEO), to assist communities, workers and employers in preparing to
transition to a 100% clean energy economy.
4
The transition office would be responsible for shifts in jobs in the utility and automotive sectors, which
make up more than 20% of the economy in Michigan.
The office would also be responsible for the collaboration between leaders of businesses, citizens and
government, and put the state initiatives, resources and technical assistance in one place.
The office would also collaborate with businesses to help fill workforce gaps and reach out to populations
that need help.
Proposed Fiscal Year 2025 budget and a 2024 supplemental will both contain funding to get the new
office up and running.
There would be two portions. The first would be the operational budget, which would cost $5 million
annually and there would be a prorated $2.5 million in the supplemental that would let the office start
before FY 2025 hits. The second part would be $10 million for a transition fund pilot fund, to test out
possible solutions in a targeted community.
The example given was of an auto factory that needed to shut down for six months to retool for electric
vehicles. During that time the workers would need to get training, as well, so when the factory reopened
they would be able to just start back up with the necessary training. During that training they may also get
some income, so they can get the skills they need.
Issues to Watch in 2024:
Video Services Act (HB 4965) : This could have a serious negative impact on video franchise fees collected
by local governments. MML opposed
Minimum Staffing Legislation (HB 4688): This would require that minimum staffing levels be a mandatory
subject of collective bargaining. MML opposed
Statewide Water Affordability Program (HB 5088-93) : This legislation would create a statewide water
affordability program by adding a $2 monthly charge to all retail water bills, creating a revenue steam to
help those under 200% of the federal poverty level pay their bills, eliminate arrearages, and make minor
pluming repairs. The League has yet to take a formal position on this legislation.
Disabled Veterans Property Tax Exemption: Shifting the cost of this exemption from locals to the state will
continue to be one of the top priorities for the League in 2024.
Revenue Sharing Trust Fund: The Revenue Sharing Trust Fund (HB 4274 and 4275) passed the House by
votes of 106-4. These bills would dedicate 8% of the 4% sales tax and place them in a trust fund
specifically for statutory revenue sh_aring. These bills are now before the Senate.
Public Safety and Violence Prevention Trust Fund: Legislation that would create a Public Safety and
Violence prevention fund also passed the House. HB 4605 and 4606 would dedicate 1.5% of the 4% sales
tax to cities, villages, townships, and counties to provided resources to help reduce violent crime across
Michigan. These bills are also before the Senate.
Minimum Staffing Requirements:
5
o HB 4688, which would make minimum staffing levels for local government units a mandatory
topic of collective bargaining. HB 4688 could place local governments in a difficult situation to
maintain sufficient fund balances because unions will argue in arbitration that funds to support
increases to staffing levels can be identified from cuts to other city services .
Potential Statewide Ballot Proposals
https://www.axmitax.org/
The initiative targets the complete elimination of both property taxes and personal property taxes in
Michigan. This includes taxes levied on real estate as well as on movable assets owned by individuals and
businesses.
The proposal addresses concerns about funding for essential local services such as police and fire
departments. It suggests that eliminating property taxes will not compromise these services, as it plans to
increasing the state revenue share allocated to local essential services from 15% to 20%, ensuring they
continue to receive necessary funding.
Local governments would be required to fund public safety, law enforcement, emergency response,
courts and infrastructure under the proposal. The proposal would change the sales tax distribution from
the current rate of 15% to municipalities and instead send 20% to municipalities and 10% to counties .
Another provision would require 10% of marijuana, income, alcohol and tobacco taxes to go toward
municipalities .
The plan would require 60% of voters to approve any local tax and a two-thirds majority in the Legislature
to approve any state tax by more than 0.1% over five years.
AxMITax will have to collect 446,198 valid signatures in support of getting the proposal on the ballot.
Signatures are due by July 27.
https://www.micitizenschoice.org/
A ballot initiative aimed at amending the Clean and Renewable Energy and Energy Waste Reduction Act
to, among other things, repeal Part 8 as added by Public Act 233 of 2023, which stripped away local
control of large scale utility land-use projects.
In November 2023, the legislature passed House Bill 5120, a bill that adds barriers to local control of
zoning for utility-scale wind and solar projects .
This bill was signed into law on November 28, 2023, becoming Public Act 233 of 2023 .
If approved, the Act will go into effect in November 2024, allowing corporations to supersede local control
across our state for utility-scale wind and solar projects.
Key new Michigan laws take effect in 2024
The Democratic-led Legislature and Gov. Gretchen Whitmer enacted more than 320 laws in 2023.
Many will take effect Feb. 13 because Republicans opposed a procedural step to put them into effect
immediately. In other cases, the majority favored a 2024 effective date or the laws kicked in in 2023.
6
Minimum wage
The minimum wage rose to $10.33 an hour on Jan. 1, up from $10.10, under a 2018 law that adjusts it
each year. The hourly rate for minors is $8.78. The tip credit, now $3.93, can be paid to employees as long
as that plus their tips is at least $10.33.
Tax cuts/economic development
Starting Feb. 13, the state will send checks averaging $550 to more than 700,000 lower-wage households
that are eligible for an expanded earned income tax credit, which is retroactive to the 2022 tax year. It is
one provision in a sweeping law that also will:
o Gradually expand tax deductions for retirement income over a four-year period, a change
estimated to aid 500,000 households and largely undo a 2011-enacted "pension tax." Households
will save an average of $1,000 .
Income tax - the 4.05% individual income tax rose back to 4.25% on Jan . 1. It automatically dropped in
2023 because tax revenues for the general fund exceeded 1.425 times the inflation rate. The Whitmer
administration interpreted a 2015 law to mean the tax cut is temporary. On Dec. 21, a Court of Claims
Judge ruled in favor of Whitmer's administration.
'Right-to-work' gone
Private-sector unions will again be able to negotiate contracts requiring union-represented workers to
join or financially support the union after the repeal of the "right-to-work" law.
Prevailing wage
A requirement that union-scale construction wages and benefits be paid on state-funded building, school
and other public works projects will be restored.
Energy
A wide-ranging law will require a significant increase in renewable sources to produce electricity by 2030
and 100% "clean energy" by 2040 . Most immediately, the state in late 2024 will have authority to approve
construction permits for large-scale wind, solar and battery-storage facilities that have hit local
opposition . SB 271 , SB 273 , SB 502 , and HB 4761 .
LGBTQ rights
Anti-discrimination protections for LGBTQ people will be codified in Michigan's civil rights law.
Discrimination based on sexual orientation and gender identity or expressed will be prohibited in
employment, public accommodations and public services, educational facilities, and housing and real
estate.
Voting
Voters will get more options under laws implementing a 2022 voter-approved constitutional amendment.
They include a nine-day early voting period, early processing and counting of absentee ballots, prepaid
postage for absentee ballot applications and envelopes, a minimum number of drop boxes and the ability
to automatically get a ballot in all future elections without having to apply each time .
7
Sign up for City of Muskegon Emails