The purpose of this statement is to notify interested parties of an error in the distribution of the 2023 funding under the METRO Act (Metropolitan Extension Telecommunications Rights-of-Way Oversight Act, 2002 PA 48, as amended, MCL 484.3101 to 484.3120) and the corrective plan.
The 2023 METRO Act payments were distributed to 1,754 municipalities on May 31, 2023. After the distribution, the Local Community Stabilization Authority (“LCSA”) identified an error in the distribution. This error is unique to the May 31, 2023 distribution, and does not apply to prior year distributions.
The error in 2023 distributions resulted in some municipalities receiving an overpayment and some municipalities receiving an underpayment of METRO Act funds.
Over the next few weeks, all municipalities that received an over or under payment will receive a corrective action letter regarding their distribution. For 95% of the municipalities, the LCSA will correct the error in next year’s payment (May 2024) with an over or under payment equal to the error in the May 2023 payment. If any municipality that would like to request consideration of another resolution, instructions will be provided in the corrective action letter. For 5% of municipalities that received a very large overpayment relative to their correct distribution, the LCSA is requesting that the overpayment be repaid to the LCSA as soon as possible. Instructions for repayment will be provided in the corrective action letter.
The error was the result of a miscalculation of AT&T’s METRO Act fee and its application to the various municipalities of the State. The LCSA has identified the error, unique to 2023, and has taken action to ensure a similar error will not occur in the future.
On May 31, 2023, the Local Community Stabilization Authority Council approved the disbursement of $33 million of METRO Act maintenance fees to the 516 eligible cities and villages and 1,240 eligible townships. The Authority disbursed the maintenance fees as follows:
2023 METRO Act Payments-Cities and Villages (PDF)
On October 1, 2014, the powers, duties, functions, and responsibilities previously vested in the Metropolitan Extension Telecommunications Rights‐of‐Way Oversight (METRO) Authority under the Metropolitan Extension Telecommunications Rights‐of‐Way Oversight Act, 2002 PA 48, as amended, MCL 484.3101 to 484.3120 (the “METRO Act”) were transferred to and vested in the Local Community Stabilization Authority (the “Authority”).
Under the METRO Act, the Authority has the exclusive power to assess fees on telecommunication providers owning telecommunication facilities in public rights‐of‐way located within one or more cities, villages, or townships located, in whole or in part, within a county having a population of 10,000 or more or a city, village or township that enacts an ordinance or resolution electing to be classified as part of a metropolitan area under the METRO Act (each a “Metropolitan Area”).
Telecommunications providers are required to pay an annual maintenance fee under section 8 of the METRO Act. April 1 to March 31 is the annual period for the assessment of the maintenance fees, which are due each year by April 29.