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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. 6513

April 21, 1988

TOWNSHIPS: Power of township board to reimburse board member salary lost from private employment for attending meeting of municipal organization

A township board is not empowered to authorize payment to any board member as compensation for the salary of the board member lost by taking time off from private employment in order to attend the annual meeting of a municipal organization.

Honorable D. J. Jacobetti

State Representive

The Capitol

Lansing, MI 48909

You have requested my opinion on the following question:

May a township board authorize payment to any of its board members of a sum of money which is equal to the amount of salary the board member lost by taking time off from regular employment where the board member goes to an annual meeting of the Michigan Townships Association in Lansing and where the payment which is authorized is over and above the member's regular salary and is in addition to expenses for transportation, room and meals?

The question of payment of salaries lost by reason of absence from private employment due to attendance at meetings or seminars related to municipal affairs has been considered in relation to a county clerk and in relation to members of a city council.

The question of whether a county clerk may travel to a convention of the Michigan State Association of County Clerks, at county expense, where the county board of commissioners withheld approval was considered in Letter opinion of the Attorney General (Senator Joseph S. Mack, August 7, 1980). There it was noted that the salary received by the county clerk is payment in full for all services rendered. Where a statute authorized the board of commissioners to hear, determine and allow claims of salaried county clerks for any money actually expended by them for the performance of their official duties be made, the Letter opinion stated:

'It should be recognized that the state county clerks' association provides valuable information to county clerks and attendance by a county clerk at the county clerks' convention is appropriate. However, no statutory provision requires the county clerk to attend the county clerks' convention as an official duty and the county board of commissioners may pay the expenses for such attendance, but is not required by law to do so.

'It is, therefore, my opinion that a county board of commissioners may decline to pay the expenses of a county clerk for attending a county clerks' convention.'

On the question of whether councilmembers in a home rule city could be reimbursed for wages or salaries lost by reason of their absence from private employment while attending meetings or seminars related to municipal affairs of the city, it was concluded in Letter opinion of the Attorney General (Senator Alvin J. DeGrow, January 22, 1980), that the sole compensation a councilmember could be paid was compensation established for the office by the city charter or by ordinance pursuant to city charter. Further, it was concluded that a payment for loss of private wages was not reimbursable as an expense. In Holmes v State Officers Compensation Comm'n, 57 Mich App 255, 263; 226 NW2d 90, 95 (1974), cited for its definition of the term 'expense allowance,' as used in Const 1963, art 4, Sec. 12, the court said:

'This Court holds that the term 'expense allowances' as used in Const 1963, art 4, Sec. 12 means normal reimbursable personal expenses such as food, lodging and travel costs incurred by an individual in carrying out the responsibilities of a state office.'

The methods for establishing compensation in charter and general law townships are provided in statutes.

In charter townships, a township board may authorize a trustee to receive payment for each meeting of the board actually attended in addition to other compensation provided by law. Reasonable expenses may be allowed to members of the township board when actually incurred on behalf of the township. MCL 42.6; MSA 5.46(6), provides:

'A trustee may receive, in addition to other emoluments provided by law for his service to the township, a sum per meeting of the board actually attended by him, as established by the township board to be paid upon authorization of the township board. The supervisor, the township clerk, and the township treasurer shall receive no additional compensation for attending meetings of the board. Reasonable expenses may be allowed to members of the township board when actually incurred on behalf of the township.' (Emphasis supplied.)

An alternative compensation procedure may be established in a charter township pursuant to MCL 42.6a; MSA 5.46(6a), by creation of a compensation commission which, subject to rejection by a two-thirds vote of the township board, may determine salaries at a meeting established in each odd year. An expense allowance or reimbursement may be paid to an elected official in addition to salary. The expense allowance or reimbursement must be for expenses incurred in the course of township business and accounted for to the township. MCL 42.6a(b); MSA 5.46(6a)(b), provides, in part:

'The commission shall determine the salary of each township elected official which determination shall be the salary unless the township board by resolution adopted by 2/3 of the members elected to and serving on the board rejects the determination. . . . If a determination is rejected, the existing salary shall prevail. An expense allowance or reimbursement paid to an elected official in addition to salary shall be for expenses incurred in the course of township business and accounted for to the township.' (Emphasis supplied.)

In general law townships, compensation procedures are established for townships with annual meetings of electors and for townships that have abolished the annual meetings. In addition, a compensation commission similar to that authorized in a charter township may be authorized. In a township with an annual meeting, the salary may be fixed at the annual meeting by the electors. If the electors do not act, the officers are entitled to receive the same salary as their predecessors. Where the annual meeting has been abolished, the salary of township officials who are paid a salary may be determined by resolution adopted by the township board subject to petition and referendum by the electors. MCL 41.95; MSA 5.82. A township board may establish a procedure for a compensation commission which will meet in each odd-numbered year. Where a compensation commission is established, procedures established for determining salary and expense allowance or reimbursement for expenses incurred in the course of township business and accounted for to the township are authorized. MCL 41.95(4)(b); MSA 5.82(4)(b), provides, in part, as follows:

'The commission shall determine the salary of each township elected official which determination shall be the salary unless the township board by resolution adopted by 2/3 of the members elected to and serving on the board rejects the determination. . . . If the determination is rejected, the existing salary shall prevail. An expense allowance or reimbursement paid to elected officials in addition to salary shall be for expenses incurred in the course of township business and accounted for to the township.'

The township board in a general law township is vested with wide latitude to determine compensability and the amount to be paid to township officials. MCL 41.96; MSA 5.83, provides:

'For services not otherwise provided for by law, rendered to townships by township officers in the duties of their respective offices, the township board shall audit and allow such compensation as they shall deem reasonable.'

In Burton Twp v Speck, 1 Mich App 339, 345-346; 136 NW2d 731 (1965), the court considered MCL 41.96; MSA 5.83, and stated:

'This statute vests wide latitude in township boards, not only to decide what services are compensable, but also to decide the amount of compensation. This latitude might invite overreaching on the part of township officials. Nonetheless, judging the wisdom of legislation is not our duty. McKibbin v. Corporations & Securities Commission (1963), 369 Mich 69, 81. In view of this latitude, the action of the Burton township trustees in determining their appointment and salaries as commissioners is tolerable.'

It is noted that your letter indicates that the payment authorized is for an amount over and above the member's regular salary and is in addition to expenses for transportation, room and meals. Accordingly, reimbursement of salary from private employment is not compensation for public employment. While a township board has broad powers in compensation matters, it cannot be concluded that such payment is either compensation for services rendered to the township or reimbursement of an expense actually incurred in the course of township business or in the township's behalf as provided by statute.

It is my opinion, therefore, that a township board does not have power to authorize payment to any board member as compensation for salary the board member lost by taking time off from private employment in order to attend the annual meeting of a municipal organization.

Frank J. Kelley

Attorney General


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