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Allegan council accepts first reading of ordinance to align fire-insurance escrow rules with state law
Summary
Council accepted the first reading of ordinance 5-34 to amend Chapter 11, Article 3 (escrow account proceeds from fire-insurance payments) to mirror Michigan law and scheduled a second reading and public hearing at the next meeting.
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The City of Allegan on Jan. 26 accepted the first reading of ordinance 5-34 to amend Chapter 11, Article 3 — the city’s rules for escrowing proceeds from fire insurance payments — to align local procedures with state law.
City staff explained the current local ordinance contained procedures and timelines that differ from state statute and said the proposed ordinance simplifies local code by referencing the Michigan Compiled Laws rather than duplicating statutory language. “Whenever you have a local ordinance that is rooted in state law, you should just reference the state law,” staff said in the presentation.
Council moved and supported a motion to accept the first reading and schedule a second reading and public hearing at the next meeting. There was no further council discussion recorded in the transcript, and the motion passed by voice vote.
Next steps: council will consider the ordinance at a second reading and public hearing at the next scheduled meeting.

