TROY (AP) — The Michigan Supreme Court will hear arguments in a dispute over whether a Detroit suburb can charge and keep certain fees to make up for past budget deficits in the building department.
The case comes from Troy in Oakland County. The city hired a private company to perform building inspections and other services. A portion of the fees charged for services was put in Troy’s general fund.
The surplus added up to nearly $1.1 million over three years. Critics say Michigan law limits building department fees to the cost of providing services. They say it’s illegal to use the fees to fill a budget hole.
Two courts so far have ruled in favor of Troy. The Supreme Court said last Wednesday that it will hear the case in the months ahead.
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