MI HB4468

Allows counties, cities, villages, and townships to issue municipal securities without voter approval through December 31, 2014 to pay unfunded pension liabilities and unfunded accrued health care liabilities.

Requires municipalities to prepare and publicly release a comprehensive financial plan before issuance, including analysis of current and future obligations, debt service amortization schedule, and certification of completeness and accuracy.

Municipal securities and their interest income are exempt from taxation by the state and political subdivisions.

Requires municipalities to obtain department approval and maintain a credit rating of A- or higher from at least one nationally recognized rating agency before issuing securities.

Municipalities issuing pension-related securities must covenant not to rescind the cessation of accruals to defined benefit plans while the securities remain outstanding, though they may reduce benefits for years of service accruing after issuance.