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Chapter 4: Boundaries and Annexation

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Chapter 4: Boundaries and Annexation Section 1: Local Government Chapter 4: Boundaries and Annexation Introduction petition is filed, or if a referendum is held The first and only principle of law and the incorporation passes, the SBC then governing boundaries of municipalities is orders an election to be held to elect a that no one—no governmental authority, or charter commission. Upon election, the individual, person or entity—has any legally charter commission drafts a charter and protected right to the placement of a sends it to the governor’s office for municipal boundary in a particular location. approval. If so approved, an election is then Municipal boundaries are drawn by held (1) to approve the charter, and (2) to politicians in the legislature. They can be elect the first slate of municipal officials. If redrawn at any time by those same the charter does not secure approval of the politicians or by a vote of the people. electorate, the charter commission has three Political boundaries are created by years within which to submit a new incorporation. They are changed by proposed charter to the governor’s office. disincorporation, consolidation, annexation, (See Chapter 3, Charter Revision and or detachment. Amendment for more on charter commissions) Incorporation Disincorporation Villages and cities have separate statutes addressing incorporation. Both statutes have Disincorporation in a home rule city begins one thing in common. The process begins by with the filing of a petition of at least 25 securing a petition for incorporation from percent of the city electors. A city sends the the State Boundary Commission (SBC). The petition to the county commission, which is SBC has an informational guideline on how required to review it. If the county approves to fill out a petition to incorporate. the petition, it will pass a resolution calling In general, the petition must be signed for an election. A 2/3 vote of the city by a sufficient number of qualified electors. electorate is required to win. It must legally describe the area to be Home rule villages have no statutory incorporated and have a survey attached mechanism to disincorporate. They would showing the boundaries in juxtaposition have to insert a provision in their charter with its surrounding communities. Before permitting them to do so before they could submitting the petition, it is recommended disincorporate. that the municipality meet with the staff of the SBC. They will review the petition and Consolidation tell you to correct any deficiencies. This is Consolidation begins with the filing of a important because a petition, once petition with the SBC signed by five percent submitted, cannot be amended. It will be of the total population of the two or more rejected if there is any doubt whether it cities or villages. If the petition is approved, meets all of the statutory requirements. the SBC orders an election on the question The SBC determines the legal to be held along with the election of nine sufficiency of the petition; holds a public charter commissioners. If the question hearing to determine the reasonableness of passes the election, the charter commission the incorporation; and, if so found, approves drafts the proposed charter. If the governor’s the petition. A period of 45 days is then office approves the charter, the election is triggered allowing five percent of the held on the charter and candidates for office population to petition for a referendum. If no to the newly consolidated entity. Handbook for Municipal Officials – Roles & Responsibilites 17 Published by the Michigan Municipal League, July 2015 (Section 1/Chapter 4) Annexation referendum period is required before the There are three rules to consider. First, in annexation becomes final. If five percent of order to be annexed, the territory has to be the registered voters in the area to be contiguous to the municipal border. Second, affected, file a petition to hold an election on the amount of land touching along the the question of annexation, the election is boundary line must be somewhat held. If both the majority of the electors in proportional to the size of the territory to be the annexed area and the majority of the city annexed. And, third, no islands of township or township electors voting separately property can be created between the approve the annexation, the decision of the municipality’s old boundary and the newly SBC stands. If either group fails to register a drawn boundary line. majority vote, the SBC decision is Home rule villages secure permission overturned. from the county commission to hold an election to annex property. If the county Exemption and Exclusions from approves the petition, it passes a resolution Annexation ordering an election. Two Year Rule Home rule cities annex property in No petition will be accepted by the SBC if several ways. If the property is owned by the filed within two years of a previous city and vacant, the city council adopts a determination by the SBC on any portion of simple resolution stating their intent to the territory included in a current petition. annex the property. If the township agrees, annexation takes place by the adoption of a Charter Township joint resolution of the legislative bodies of If a charter township substantially meets all the city and the township. If the property is of the following requirements, property can in a charter township, the county is only be annexed under the provisions set petitioned to hold an election in the city and forth in Section 34 of the Charter Township in the area to be annexed. Act. The township has: Most other annexations are through a state equalization value greater than petition to the SBC. Petitions can be filed by $25 million; the city, by 75 percent of the land owners, a minimum density of 150 persons per by 25 percent of the registered voters in the square mile; area to be annexed or by one percent of the fire protection services provided directly entire population of the city and township. or by contract; The petition process consists of: a zoning ordinance or master plan; 1. a pre-application review of the petition solid waste disposal services; provided by the SBC containing: legal water or sewer services; description of the territory, a survey, a police protection by contract or map of the general area in juxtaposition otherwise. with the rest of the city. 2. a determination of the legal sufficiency All of these services must be provided to the of the petition by the SBC. entire township. 3. a public hearing by the SBC. Annexation of territory from a charter 4. an adjudicative hearing at which time township is still permitted but it is only the SBC reviews their staff reports and allowed by: responses to questionnaires sent out to election called for by petition of the city and township, and registered voters within the territory to 5. approval by the SBC. be annexed and the city; joint resolution of the city and the If the SBC approves the petition and the township, and head of the Consumers and Industry Services Department signs off, a 45-day 18 Handbook for Municipal Officials Published by the Michigan Municipal League, July 2015 Boundaries and Annexation petition to the SBC to straighten the agreeing to annexation of property into the boundary between the two city. municipalities or to remove enclaves. PA 425 Agreements -- Conditional The Charter Township Act does not provide Transfer of Property for Economic a means for a property owner to petition for Development annexation with the SBC. 1984 PA 425, as amended, permits units of government to conditionally transfer PA 425 Agreements municipal jurisdiction over property from Property within the jurisdiction of an one municipality to another for the purposes agreement entered into pursuant to 1984 PA of economic development. For example, if a 425 cannot be annexed during the term of developer of an economic development the agreement. The 425 Agreement must project in the township requires water and have been entered into for an actual sewer, the property is conditionally economic development project as defined by transferred into the city in order to secure the act. It cannot be entered into merely to those services. The city shares the taxes it exchange utility services between the receives from the transferred property with municipalities. There also has to be an actual the township for the length of the agreement, conditional transfer of property. To at the end of which the property either effectively block annexation, the 425 returns to the township or stays with the agreement cannot have been entered into as city. Each municipality has to hold a public a sham or “shark-repellant” to block hearing. Finalization of a 425 agreement annexation. Twps of Casco, Columbus and does not occur until the expiration of a 30- Lenox v SBC. day referendum period, when it is filed with the county clerk and the secretary of state. Boundary Changes by Agreement Two statutes, the “Urban Cooperation Act” Detachment and “Act 425,” are often used to approve a Villages boundary change between a city and Detachment of property from a home rule township. village is initiated by the filing of a petition with the county clerk of one percent of the Urban Cooperation Act population of the qualified electors in the The Urban Cooperation Act (1967 PA 7) village and township. If the petition is and the Intergovernmental Transfers of legally sufficient, the county approves the Functions and Responsibilities Act (1967 petition and orders the election. The votes of PA 8) are preferred by cities. The acts the village and township electors are permit two or more local governments to counted collectively.
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