Meridian Township may ask voters to approve $35 million for road repairs

MERIDIAN TWP. — Township officials say they need about $3 million more each year to address crumbling local streets. 

They may ask voters in August to let the township take on debt and increase property taxes by around 1.7 mills, a move that would raise $35 million over the next 10 years to maintain roads that are still intact and repair others that are falling apart. 

The township has a special millage in place for road work, but officials say it doesn't generate enough to address the problem. It passed in 2012, and the 0.247 mills costs the owner of a home with a taxable value of $150,000 about $37 a year.

Millage doesn't generate enough funding

That millage generates around $420,000 each year and expires in 2023. 

Last year, the township had $588,500 to address neighborhood streets — $416,000 from the millage and $172,500 from the county road department.

That's about $3 million short of the funding township officials say they need to completely fix crumbling local streets over the next 10 years. 

The Ingham County Road Department is responsible for all of the roads in Meridian Township.

But funding restrictions mean Meridian Township provides most of the money for repaving on neighborhood streets. 

That means township officials are responsible for funding maintenance and repair for 147 miles of streets. 

In 2018, they were able to repave just 3 miles — about 2% of all local streets. 

Citizens said roads are a priority

Assistant Township Manager Derek Perry, who also serves as director of public works, said infrastructure needs emerged as a priority after a citizen survey. 

Township Manager Frank Walsh said officials are thinking about bonding because they want to make sure they have adequate funds to address the issue. 

"We didn’t want to make a commitment to our residents that we were going to fix the roads and then not have nearly enough money to do it," he said during a special township board meeting Tuesday night.

The two pots of money the township can pull from regularly — the special millage and a county match — aren't enough, Perry said. 

He said unless the township can secure more funding, it would take 49 years to repave all 147 local miles of road. 

Because the township already levies 8.8 mills, close to its 10 mill limit, officials can't use a special millage to raise the entirety of the $35 million they need to make up the gap, Walsh told township board members.

Instead, they're thinking about taking on debt through bonds and raising property taxes to pay back the debt.

If the township board and voters both approve the move, bonds would provide enough money to make up the gap and allow the township to address all 147 miles four times faster, Perry said. 

It would cost someone who owns a home with a taxable value of $150,000 about $292.50 a year, according to a presentation Perry gave Tuesday night. 

Walsh said the money would come from three series of bonds — one this year, another in 2022 and the final in 2025 — that would generate about $11.6 million each. 

Another option wouldn't equally distribute

Perry said another option is for the township to use special assessments. 

That would require neighborhoods to petition for road repairs and would cost individual homeowners much more than the bond issue. 

Perry gave an example of what the assessments might look like, using a 0.15-mile stretch of Shaker Boulevard between Dobie Road and Seneca Drive — that's near the center of the township and slightly south of West Grand River Avenue. 

Staff estimated the short stretch of road would cost $64,560 to fix. 

The cost would be shared by residents who own property on the street, and those costs would vary based on how much of a homeowners' property fronts the road. Through special assessments, that would cost homeowners along the road anywhere from $693 to $1,066 a year for 10 years.

Township Supervisor Ron Styka said he doesn't see a need to go with an option that wouldn't evenly distribute costs. 

"We are one Meridian," Styka said. "Fixing the neighborhood streets in all Meridian is going to benefit all Meridian residents."

Board members generally supported the bond issue but wanted more time for discussion. They'll talk about road funding again during their meeting at 6 p.m. Tuesday. 

Walsh said if board members agree to put the issue on the Aug. 6 ballot, they must finalize language before May 14, the deadline to get a question on the ballot. They would have another chance to do that May 9 if they can't agree on language next week. 

Contact reporter Megan Banta at (517) 377-1261 or mbanta@lsj.com. Follow her on Twitter @MeganBanta_1.