MI SB0086

Allows counties, cities, villages, and townships to issue municipal securities without voter approval through December 31, 2018 to pay unfunded pension liabilities resulting from ceasing defined benefit plan accruals or closing plans to new employees.

Permits issuance of municipal securities to pay unfunded accrued health care liabilities and establishes requirement that proceeds be deposited in health care trust funds with plans to mitigate rising health care costs.

Requires municipalities to publish notice of intent, prepare comprehensive financial plans analyzing obligations and demonstrating sufficiency of funds, and obtain department approval before issuing securities.

Restricts issuance to municipalities with AA or higher credit ratings from at least one nationally recognized rating agency and prohibits changes to defined benefit plan benefit structures after issuance.

Allows municipalities to issue refunding securities after December 31, 2018 to refinance existing securities issued under this section, provided final maturity does not exceed the original security's maturity and AA or higher credit rating is maintained.