DELEG - Metro Authority Annual Report & Funds Use Guidelines

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Metro Authority Annual Report & Funds Use Guidelines

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Municipalities with populations over 10,000 are required to report on the usage of the funds they receive under PA 48 of 2002. Reports may be completed and submitted by either paper or electronic format. The act states that municipalities may use funds received under the act solely for rights-of-way purposes.

Public Right-of-Way Definition

A public right-of-way is defined broadly in Section 2(i) of the METRO Act (MCL 484.3102), as:

"The area on, below or above a public roadway, highway, street, alley, easement or waterway. Public right-of-way does not include a federal, state or private right-of-way."

Based on this definition, a public right-of-way does not include just the public roadway, highway, street or alley, but also includes, more broadly, public easements and public waterways.

Guidelines For The Use Of Right-Of-Way Funds

Section 10(4) of PA 48 states: "The amount received under sections 11 and 12 shall be used by the municipality solely for rights-of-way related purposes. Rights-of-way purposes does not include constructing or utilizing telecommunication facilities to serve residential or commercial customers."

Some applications are obviously allowable and others are obviously not allowable. The following lists some examples of applicable and non-applicable uses of right-of-way funds:

A. Applicable Uses
	1. Administrative expenses related to the administration of the METRO Act provisions, including:
			-Engineering costs related to rights-of-way purposes
			-Consulting costs related to rights-of-way purposes
			-Cost-allocated management costs related to rights-of-way purposes
		2. Public rights-of-way maintenance and repair, including the removal of blighted/diseased trees from the public rights-of-way; and to replace sidewalks damaged by trees in public rights-of-way.
		3. Public rights-of-way dust control.
		4. Public street lighting installation and expenses for rights-of-way purposes, including electricity and light fixtures for lighting in the public right-of-way.
		5. Public rights-of-way snow removal for rights-of-way purposes.
		6. Maintenance of the unimproved area of a public rights-of-way (i.e., trimming and cutting of trees and brush).
		7. Construction and maintenance of sidewalks and bike paths within the public rights-of-way.
		8. Construction or utilization of telecommunication facilities within the public rights-of-way to serve noncommercial governmental interests.
		9. Signage in public right-of-way, ie, neighborhood watch signs, welcome signs, etc.
		10. Equipment purchases used strictly for rights-of-way purposes, ie, portable scales used to keep overloaded trucks off public right-of-way.
		11. Purchase and planting of trees, shrubs and flowers in public right-of-way.
B. General Non-Applicable Uses
		1. Capital improvements not used for right-of-way purposes.
		2. Non-right-of-way related regular payroll/administrative expenses, unless supported by an acceptable cost allocation methodology.
		3. Equipment purchases, unless shown to be used primarily for rights-of-way maintenance.
		4. Private road construction and maintenance.
C. Strictly Non-Applicable Uses
	1. Constructing or utilizing telecommunication facilities to serve residential or commercial customers.
	2. Non-right-of-way construction or maintenance.

The above listed examples are not meant to be exclusive/inclusive of all possible situations.
D. Negative Carry Forward of METRO Funds
	Any negative carry forward balance is limited to an amount not to exceed the total amount of funds received in the current reporting year.

If you have any questions or need assistance in determining the applicable use of and reporting of right-of-way funds, please contact the METRO Authority.
Rev. February 28, 2006


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