Recently the City of Sturgis was presented with a proposal by three area arts organizations to institute a voluntary utility bill round up program. Under this program, City of Sturgis utility customers could choose to “round up” their monthly utility bill to the next dollar, with the difference being added to a round up fund and used for a dedicated purpose. For example, if a participating customer’s monthly utility bill was $55.25, the customer would pay $56.00 and $0.75 would be added to the round up fund. Participating customers would pay a maximum of $11.88 per year and should average around $6.00 total per year under the program. Similar programs are in place in various communities around the country.
As part of their consideration of this proposal, the City Commission has asked that a brief survey on the issue be developed to gather citizen feedback on the issue. The survey is available online HERE and can also be accessed from the City’s hompage at sturgismi.gov. For those without computer access, surveys are also available to fill out at City Hall. Results of the survey will be made available to the City Commission at a future meeting.
Source: The Sturgis eWire
I am curious how this can be legally done. It is my understanding that utility payments must be paid to that particular utility fund and only that fund. Water bill payments go to the water fund. Sewer bill payments go to the sewer fund. Collected money can be spent on items related to that dedicated fund, but nothing else. (You cannot take water fund money and spend it on new furniture, festivals, the police department, etc.) Any surplus should be reflected in infrastructure maintenance/improvement or reduced rates.
What citizen would approve any additional charge (round up fund) without the specifics of where that money will be spent? And, unless that “round up fund” is dedicated to the parks & recreation or similar governmental community funding entity with the requisite statutory fiduciary right, this money cannot be donated to just any program – no matter its “goodness”.
UNLAWFUL EXPENDITURES BY A GOVERNMENTAL UNIT
Contributions or appropriations, which are not specifically authorized by the Constitution or State statute, cannot be authorized regardless of the worthiness of the cause. Examples of such prohibited expenditures where there is no contract for specific services to lawful wards or functions of the local unit have been negotiated are as follows:
Contributions to churches, veterans, non-profit organizations.
Payment of funeral expenses for a person injured on government property.
Donations to a private ambulance or EMS service not under contract with the governmental unit.
Donations, including use of property or equipment to Little League, Scouts, Big Brothers/Sisters.
Donations to community organizations.
Expenses for private road construction or maintenance.
Office refreshments, picnics.
Presents to officials and employees or retirement recognition events.
Flowers to the sick or departed (AGO 2346 dated July 18, 1956).
Mileage of officials (except county finance committee and board of commissioners. See MCL 46.52 and 46.62) and employees to and from their residence to the city, township or village hall, county building or meeting rooms. (Mileage paid to county commissioners must, of course, be included on their W-2 as taxable income.)
Per diem compensation to township supervisor, clerk and treasurer on a salary basis for attending township board meetings. (Check city and village charters for their compensation procedures or restrictions.) Extra compensation for summer tax collections unless part of the initial salary resolution or is authorized within statutory procedures for an increase in salary.
Extra compensation for special elections unless part of initial salary resolution or is authorized under statutory procedures for an increase in salary.
The foregoing is not intended to be an exhaustive list of legal or illegal expenditures, but is an attempt to explain the most common questions and concerns raised on these issues.