New Road Funding Option For Township

New Road Funding Option For Township

MERIDIAN TOWNSHIP - New state legislation was recently passed that gives local governments another avenue for getting funds for road repair. Thanks to the legislation, communities can now request loans from their county road departments. Since local government are funded mostly through property tax revenue, the legislation is targeted towards small communities in the Upper Peninsula.

The loans work by allowing municipal governments to borrow money from there county road departments, which they have ten years to pay back. This allows small communities greater up-front funds, which increases the possibilities of their projects.

"Our tax collection can't support a one-time expenditure for roads, but its something that if we were able to borrow some money from [the] Road Department that we could pay that back over five or ten years," said Derek Perry, Assistant Township Manager and Director of Public Works & Engineering.

Meridian Township generates enough property tax revenue that it is one of the relatively few communities in the state that has a dedicated road millage fund, and is usually allowed to pull from the general fund on top of that. However, the extreme cost and slow pace of road construction means that the Township is keeping this program in mind for future projects.

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