It looks like Oxford Village won’t be receiving any money from the township for the downtown streetscape improvements it’s planning to make in two years.

Not because the township rejected the idea, mind you, but because it’s apparently contrary to state law.

Last week, village attorney Bob Davis issued an opinion on the subject.

“A local unit of government may not transfer public monies or public assets to another local unit of government,” Davis wrote. “This is well supported by the Michigan Constitution.”

Even though the village is part of the township and village residents are township residents, too, each has its own government that levies its own property taxes.

“The township raises taxes for legitimate township purposes and (contributing to the village’s streetscape project is) not one of those. That’s the problem,” Davis said.

“Can they expend money on a township park, township infrastructure, township buildings, township maintenance? Yeah, all good . . . But can they take surplus money and put it towards the cause of another government? No. It’s just a flat no.”

Davis’ opinion comes on the heels of the village’s request for the township to contribute $150,000 toward improving downtown’s streetscape when the Michigan Department of Transportation engages in a major reconstruction of M-24, from sidewalk to sidewalk, in 2019.

Village officials view the M-24 project as their opportunity to make improvements to the downtown streetscape that are intended to slow traffic speeds, enhance pedestrian safety and make the area more aesthetically-pleasing and comfortable for visitors.

Interim Village Manager Evan Teich understands why the township can’t contribute and said the village will adjust its plans accordingly and move forward.

“Sure, it’s disappointing, but it’s a matter of law,” he said.

“It is certainly not the township’s fault that the state doesn’t allow such an action.” Teich noted. “We thank the township for even considering it . . . I think there was support for it (at) their board level, but it’s not legal, so it’s moot and we’ll move on”

In his opinion letter, Davis cited Article 7, Section 26 of the state constitution, which states, “no city or village shall have the power to loan its credit for any private purpose, or, except as provided by law, for any public purpose.”

“It’s really pretty fundamental,” Davis told this reporter. “I was kind of surprised at how fundamental it is that unless you have a statute, or some sort of blessing in the law that allows an expenditure or a type of expenditure, you shall not make such an expenditure . . . If you can’t find a statute that allows for it, then it’s not allowed.”

Although townships are not specifically mentioned in Section 26’s language, Davis said the law pertains to all municipalities.

“It’s the proposition that local governments can’t do it,” Davis told this reporter. “I don’t know why it just says city and village, but all the other provisions (of the state constitution) apply to townships as well.”

“You can’t give away or loan your credit . . .You just can’t do it. You just can’t pledge the money,” he noted.

In his opinion letter, Davis indicated that in addition to the constitutional language, the prohibition on the transfer of public monies from one local unit of government to another is “also supported by decisions of the Michigan Supreme Court and various opinions of the Attorney General.”

“This prohibition cannot be modified by a vote of the electors,” Davis wrote.

Township attorney Gary Rentrop didn’t believe such a contribution was legal, either.

In a Sept. 21 email to this reporter, Rentrop wrote, “I am not aware of any statutory authority that would allow for the expenditure. (The) township cannot make gifts.”

Officials have already identified $400,000 in available village and DDA funds for the streetscape project, which they hope will be matched on a two-to-one basis through the state’s Transportation Alternatives Program (TAP). If awarded this grant, that would mean an additional $800,000 from the state for a total of $1.2 million.

Village officials were hoping to do more by getting an additional $150,000 from the township, which could have been matched with $300,000 from the state.

Teich noted the village and DDA are “still looking for partners,” be they service clubs, local businesses or individuals, who wish to donate to the streetscape project.

During the village council’s Sept. 26 work session meeting, Teich informed everyone that “the Rotary Club (of Oxford) has discussed the village providing a proposal to them for some type of funding for some permanent-type features that they could put their name on.”