When it comes to roads, Michigan has faced a perfect storm. Funding has declined while maintenance costs have risen. This has resulted in underinvestment in our road system. In addition, Public Act 51 of 1951, the law that enacts and distributes gas taxes and vehicle registration fees, only allows the WCRC to pay for a maximum of 50 percent of improvements on road classified as “local” or subdivision roads.
The lack of adequate revenue has created an enormous debt of needed road repairs. Due to these funding constraints, WCRC has elected to spend its limited resources on primary roadways and suspend its preventative maintenance and rehabilitation activities on subdivision roads.
In order to address needed road repairs in subdivision communities, some citizens and business owners have turned to Public Act 246 of 1931, which is administered by the WCRC, and Public Act 188 of 1954, which is administered by the township. These acts allow property owners along a specific road to file a petition seeking improvements to that road through a SAD.
With a SAD administered by the road commission (under PA 246), WCRC agrees to front the cost of road improvements on a specific public road with an agreement from the property owners to repay the cost of the improvement over a period of years. Funding is typically front-loaded by a public bond sale using the full faith and credit of the township. Repayments of the bonds occur through property owner’s winter tax bills over a period of years (usually 10).