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Council debates whether to continue annual street-lighting assessment as city converts lights to LED
Summary
Officials discussed the annual street-lighting special assessment, attorney guidance that electricity costs can be covered by an improvement assessment under Michigan law, and community disagreement over whether the assessment was intended for electricity or for capital conversions to LED.
Council discussed the annual street-lighting special assessment at the April 13 meeting after City Manager Tim Gibbons reviewed legal authority and projected costs.
Gibbons told council the city has an ordinance that allows special assessments for local improvements and, under the home-rule improvement provisions, the attorney's opinion is that electricity to operate lights may be covered by a special assessment because providing electricity sustains the improvement. He referenced MCL 117.4d and the Garden City Charter when describing the assessment authority.
Gibbons said the city's five-year assessment is roughly $39.89 per residential parcel per year in comparable communities and cited examples such as Wayne that levy higher per-parcel charges. He said street-light electricity costs rose from about $479,000 to about $650,000 over two years and that LED conversions (paid by grants) will reduce consumption: the city has converted roughly 518 fixtures to LED and expects a second grant in 2028 to complete remaining conversions.
Several council members questioned how the assessment proceeds are used. One member cited Charter section 8.06 and said special-assessment funds "must be used only for the improvement project for which the assessment was levied," and argued residents believed the fee was to fund light replacements, not ongoing electricity costs. Another member said voters were told the assessment would pay for new lights and expressed reluctance if the fee is used only to pay utility bills.
Gibbons replied that the ordinance and the attorney's opinion allow the city to apply assessments to electricity and to improvements; he noted the budget impact if the assessment were not collected: the proposed budget assumes the assessment revenue is included; without it the use of fund balance to balance the budget would grow materially (staff estimated a larger general-fund draw). He said council must decide annually through 2028 whether to collect the assessment and that the budget will be adjusted according to council's vote during adoption.
During public comment several residents reiterated concerns about fairness and transparency and asked where special-assessment account details and DTE rebate information are posted. Gibbons and staff committed to providing financial details and posting the water-rate study and related materials online.
No final vote on modifying the assessment was recorded at this meeting; council deferred the formal budget vote to the adoption process required by the charter.
