Niles Twp. v. Berrien Cty. Bd. of Comm'rs

• Decision Date: 24 June 2004
• Docket Number: Docket No. 244138.
• Citation: 683 N.W.2d 148,261 Mich.App. 308
• Parties: NILES TOWNSHIP, Plaintiff-Counterdefendant-Appellee, v. BERRIEN COUNTY BOARD OF COMMISSIONERS and Berrien County, Defendants-Counterplaintiffs-Appellants.
• Court: Court of Appeal of Michigan — District of US

683 N.W.2d 148

261 Mich.App. 308

NILES TOWNSHIP, Plaintiff-Counterdefendant-Appellee, v. BERRIEN COUNTY BOARD OF COMMISSIONERS and Berrien County, Defendants-Counterplaintiffs-Appellants.

Docket No. 244138.

Court of Appeals of Michigan.

Submitted February 3, 2004, at Grand Rapids.

Decided March 23, 2004, at 9:00 a.m.

Released for Publication June 24, 2004.

Bauckham, Sparks, Rolfe, Lohrstorfer & Thall, P.C. (by James W. Porter), Kalamazoo, for the plaintiff.

Kreis, Enderle, Callander & Hudgins, P.C. (by R. McKinley Elliott, Thomas G. King, and Stacy Soper-Stine), Kalamazoo, for the defendants.

Lynda E. Thomsen, Kalamazoo, for Michigan Townships Association.

Before: MURRAY, P.J., and MURPHY and MARKEY, JJ.

PER CURIAM.

Berrien County determined that Niles Township could not finance the operation of its fire department by special assessment pursuant to MCL 41.801 et seq. Therefore, the county board of commissioners refused to certify the township's special assessment roll under § 37 of the General Property Tax Act, MCL 211.37. The township sought declaratory relief. The trial court ruled that the township had properly followed statutory procedure and that the life of the township's voter-approved special assessment was not limited to twenty years by Const 1963, art 9, § 6. Berrien County appeals by right. We affirm.

I. Factual Background

Niles Township is situated within Berrien County. In 1967, township voters approved two special assessments, one for capital improvements for fire protection for up to three mills, and one for operation and maintenance of fire protection for up to 2-1/2 mills. After that vote, the township continued to annually assess these millages, holding hearings and submitting the request to the county for certification each year under MCL 211.37.

In a letter dated February 26, 2001, counsel for the county raised concerns with the way the township was funding its fire department and library, stating specifically that it was not appropriate to use special assessments to fund fire department operations because special assessments may only be used to recoup expenses of public improvements. The township's counsel responded that special assessments were appropriate because fire protection directly benefits the property assessed. The parties' counsel continued to debate the legal question through correspondence.

Despite the legal debate, the township prepared to have the special assessments certified by the county. The township published notice it intended to address taxes to be levied for fire operation and maintenance, library services, fire capital improvement, general fund, street lighting, and drains. The township did not send individual notices to property owners. After holding the tax hearing as scheduled, the township board approved all levies.

Days before the township's tax hearing, the Berrien County Board of Commissioners voted twelve to zero not to certify the township's library or fire special assessments. On September 27, 2001, Niles Township filed this action in the Berrien Circuit Court seeking a declaratory judgment and determination that the fire special assessments, as well as a library millage, were lawful. The township also sought a writ of mandamus and a preliminary injunction directing the Berrien County Board of Commissioners to certify the tax roll, including the fire special assessments. The county responded with counterclaims for a declaratory judgment seeking a determination that the two fire assessments, the library millage, and a drain millage, did not comply with authorizing statutes or Michigan's Constitution.

After conducting hearings, the trial court ruled that the township's library millage could not exceed the twenty-year limit of Const 1963, art 9, § 6 and that the rollback provisions of the so-called Headlee Amendment, Const 1963, art 9, § 31, also applied. The library millage issues are not before this Court.

With regard to the fire protection special assessments, the trial court first examined the statute that authorizes a township to levy a special assessment for the purchase and operation of equipment for police and fire departments, MCL 41.801. Reading the statute as a whole, the trial court concluded that the statute authorizes the township to specially assess for the operation and maintenance of its fire department. Likewise, the trial court rejected the county's argument that the township did not comply with statutory notice requirements. Specifically, the trial court found that the notice requirements of MCL 41.801 controlled and that MCL 41.803, which requires compliance with the notice requirements of MCL 41.724a, applied only if the township issued bonds to raise funds. For the same reason, the court found that the fifteen-year limitation of MCL 41.803 only applied when special assessments are used to retire issued bonds in annual installments. Accordingly, the trial court ruled that the township had not exceeded its statutory authority in levying its fire protection special assessment. Finally, the trial court determined that this case is controlled by St. Joseph Twp. v. Municipal Finance Comm., 351 Mich. 524, 88 N.W.2d 543 (1958), which upheld a township-wide special assessment district and the use of the value of the property assessed as the measure of benefit to that property when levying the special assessment. Accordingly, the trial court entered its order granting in part and denying in part the township's complaint for declaratory relief and writ of mandamus.¹

Berrien County now appeals by right the trial court's grant of declaratory relief regarding the legality of Niles Township's fire protection special assessments.

II. Analysis

A. Standard of Review

This Court reviews de novo both questions of statutory interpretation and constitutional issues. Harvey v. Michigan, 469 Mich. 1, 6, 664 N.W.2d 767 (2003); Roberts v. Mecosta Co. Gen. Hosp., 466 Mich. 57, 62, 642 N.W.2d 663 (2002). The determination whether to grant declaratory relief is within the sound discretion of the trial court. Allstate Ins. Co. v. Hayes, 442 Mich. 56, 74, 499 N.W.2d 743 (1993).

B. Statutory Issues

The first question we address is one of statutory interpretation and one of first impression. Does MCL 41.801 authorize a township to fund capital improvements for a fire department, the operation and maintenance of a fire department, both, or neither through a special assessment?

The primary goal of judicial interpretation of statutes is to discern and give effect to the intent of the Legislature; the rules of statutory construction merely serve as guides to assist in determining that intent with a greater degree of certainty. Gladych v. New Family Homes, Inc., 468 Mich. 594, 597, 664 N.W.2d 705 (2003); In re Quintero Estate, 224 Mich.App. 682, 692-693, 569 N.W.2d 889 (1997). It is a fundamental principle that a clear and unambiguous statute leaves no room for judicial construction or interpretation. Gladych, supra at 597, 664 N.W.2d 705; People v. McIntire, 461 Mich. 147, 152-153, 599 N.W.2d 102 (1999)." `When a legislature has unambiguously conveyed its intent in a statute, the statute speaks for itself and there is no need for judicial construction; the proper role of a court is simply to apply the terms of the statute to the circumstances in a particular case.'" Id. at 153, 599 N.W.2d 102, quoting People v. McIntire, 232 Mich.App. 71, 119, 591 N.W.2d 231 (1998) (Young, P.J., concurring in part and dissenting in part) (emphasis in the original). Thus, this Court "may engage in judicial construction only if it determines that statutory language is ambiguous." Gilbert v. Second Injury Fund, 463 Mich. 866, 867, 616 N.W.2d 161 (2000).

Where the language in a statute is ambiguous, a court may go beyond the statute's words in order to ascertain legislative intent. Sun Valley Foods Co. v. Ward, 460 Mich. 230, 236, 596 N.W.2d 119 (1999). "An ambiguity of statutory language does not exist merely because a reviewing court questions whether the Legislature intended the consequences of the language under review. An ambiguity can be found only where the language of a statute as used in its particular context has more than one common and accepted meaning." Colucci v. McMillin, 256 Mich.App. 88, 94, 662 N.W.2d 87 (2003). If reasonable minds can differ with respect to the meaning of a statute, that statute may be considered ambiguous and judicial construction is appropriate. Ross v. Michigan, 255 Mich.App. 51, 55, 662 N.W.2d 36 (2003).

With these concepts in hand, we examine the language of MCL 41.801, which reads in pertinent part:

(1) The township board of a township ... may purchase police and fire motor vehicles, apparatus, equipment, and housing and for that purpose may provide by resolution for the appropriation of general or contingent funds....

(2) The township board of a township ... may provide annually by resolution for the appropriation of general or contingent funds for maintenance and operation of police and fire departments.

(3) The township board ... may provide that the sums prescribed in subsection (2) for purchasing and housing equipment, for the operation of the equipment, or both, may be defrayed by special assessment on the lands and premises in the township or townships to be benefited....

(4) If a special assessment district is proposed under subsection (3), the township board ... shall estimate the cost and expenses of the police and fire motor vehicles, apparatus, equipment, and housing and police and fire protection, and fix a day for a hearing on the estimate and on the question of creating a special assessment district and defraying the expenses of the special assessment district by special assessment on the property to be especially benefited....

This statutory language is ambiguous regarding what expenditures may be defrayed by special assessment. Reasonable minds could differ on whether the statute authorizes special...