MI SB0593

Cities may provide in their charters for borrowing money and issuing bonds for any purpose within the scope of city powers.

Net indebtedness limits are the greater of 10% of assessed property value or 15% if the amount exceeding 10% is used solely for hospital facility construction or renovation.

Cities may borrow up to 3/8 of 1% of assessed property value for fire, flood, or other calamities even if it exceeds the indebtedness limit, with repayment due within 5 years.

When computing net indebtedness, cities may add an assessed value equivalent based on state revenue sharing, local community stabilization authority reimbursements, and certain specific tax revenues divided by the city's millage rate.

Multiple categories of bonds and obligations are excluded from net indebtedness calculations, including revenue bonds, special assessment bonds, motor vehicle highway fund bonds, and obligations for pollution abatement or combined sewer overflow facilities.