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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 5830

December 16, 1980

COUNTIES:

Department of public works--operating budget

A county board of commissioners must make an annual appropriation for the operation of the department of public works and may use monies in the general fund and other monies lawfully available for support of the department.

Mr. James Norlander

Calhoun County Prosecutor

190 East Michigan Avenue

Battle Creek, Michigan 49014

Ms. Bess H. Jordan

Chairperson

Calhoun County Board of Public Works

County Building

Marshall, Michigan 49068

You have asked for my opinion as to the following questions:

(1) 'Whether the Calhoun County Board of Commissioners may legally convert the Calhoun County Department of Public Works and the Calhoun County Board of Public Works into a 'restricted or special fund agency' and thereby not provide an appropriation from its annual budget for the expenses of the Calhoun County Department and Board of Public Works as required by state law (MCLA 123.735; MSA 5.570(5))?' (Jordan)

(2) 'To what extent is it necessary for the County to maintain a Department of Public Works from the General Funds of the County?' (Norlander)

County departments of public works (DPW) and county boards of public works (BPW) are governed by 1957 PA 185, as amended; MCLA 123.731 et seq; MSA 5.570(1) et seq. A DPW is established by a two-thirds vote of the county board of commissioners, and a BPW generally consists of the county drain commissioner and six or eight members appointed by the county board of commissioners pursuant to 1957 PA 185, supra, Sec. 2. That section also provides that the DPW shall be under the general control of the county board of commissioners and under the immediate control of the BPW.

1957 PA 185, supra, enables counties through the BPW and the DPW to acquire and operate systems for water supply, sewage disposal, refuse disposal, erosion control, and to make lake improvements. Other powers include the planning of these projects, arrangements for special assessments, acquisition and sale of property, eminent domain, and the issuance of bonds. Various alternatives for the funding of such projects are outlined in 1957 PA 185, supra, Sec. 11, in relevant part, as follows:

'(a) By the issuance of revenue bonds. . . .

'(b) By the issuance of bonds in anticipation of payments to become due under contracts. . . .

'(c) By the issuance of bonds in anticipation of the payment of special assessments. . . .

'(d) By moneys advanced by a county . . . under agreements with a municipality or municipalities for the repayment of the same.

'(e) By moneys advanced . . . by a public or private corporation. . . .'

Turning to the first question, 1957 PA 185, supra, Sec. 5 requires an appropriation for the expenses of the DPW:

'The county board of commissioners shall provide each year in its annual budget for the expenses of the department of public works. The board of public works shall be limited in its expenditures to the amount appropriated unless a further appropriation shall be made by the county board of commissioners.'

Since 1957 PA 185, Sec. 5, supra, requires an appropriation for the expenses of the DPW, it is my opinion that a county board of commissioners must make an annual appropriation in compliance with this statutory mandate. Designation of the DPW as a 'restricted or special fund agency' would not relieve the county board of commissioners from its obligation under 1957 PA 185, Sec. 5, supra, to provide for the expenses of the DPW in its annual budget.

Your second question asks to what extent the county must maintain the DPW from the general funds of the county. While 1957 PA 185, Sec. 5, supra, requires the county board of commissioners to provide in its annual budget for the expenses of the DPW, the statute is silent as to sources of the funds which may be used by the county board. Accordingly, it is my opinion that there is no requirement, either express or implied, that any general funds of the county be used as the source of the funds for the DPW in the annual budget.

The source of the revenues appropriated to the DPW may be the general funds of the county, or any other moneys lawfully received by the county which are not restricted by statute, grant, contractual obligation, or otherwise to some purpose unrelated to the DPW's activities. In setting the level of appropriation to the DPW, it is my opinion that the source of funding for the DPW from funds lawfully available for appropriation rests in the sound discretion of the county board of commissioners.

Frank J. Kelley

Attorney General


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