Local gov 101: Using Saginaw Township as a case study, see how local governments fund services, make decisions, and shape daily life.
From police and parks to roads and zoning, communities fund most services locally, stitch in state and federal dollars, and write rules shaped by neighborhood needs. Know your form of government—village, city, township, or charter township—and you’ll know what you get, who decides, and where your tax dollars go. Using Saginaw Charter Township as our guide, here’s how it works.
What we are: Saginaw Charter Township — a Michigan charter township (enhanced, enumerated powers; annexation protection). ~41,000 residents.
Who does what (3 layers):
Township: Police, fire, local roads, parks, zoning, water distribution.
County: Sheriff patrols, courts/jail, major roads, public health, animal control.
Schools/College: STCS, ISD, Delta College (separate budgets, same tax bill).
How we fund services: Property taxes ~70–80%, state revenue sharing ~10–15%, fees/charges ~5–10%; project-specific special assessments when only some properties benefit.
Why retail matters: A large commercial tax base (State, Bay, Tittabawassee corridors) helps fund full-service operations—including a township police department.
Water & wastewater (partnership):
Water: The city treats, and the township distributes via its own pipes.
Wastewater: Most Township wastewater is treated by the City; Southwest & Center Road Sewer Districts use the Township plant.
Your township millage snapshot (8.4403 mills): Police 5.4224 (voted) • Fire 2.1000 (special assessment, only in district) • General ops 0.9179.
Your overall homestead tax mix (typical): Schools ~43% • County ~34% • Township ~23% of your total bill (varies by property).
Quick compare: local government types
General Law Township: limited, state-listed powers (e.g., Tittabawassee, Richland).
Charter Township: enhanced, enumerated powers under the 1947 Act (e.g., Saginaw, Bridgeport, Buena Vista).
Home-Rule City/Village: broad powers unless prohibited (e.g., Saginaw, Frankenmuth; Chesaning, St. Charles).
If you can’t pay taxes: Call the Saginaw County Treasurer early; hardship (poverty) exemptions and payment plans may apply.
Get involved: Attend Township Board & School Board meetings; read agendas, ask questions, and track millages and special assessments.
Saginaw Township is a charter township—a form of local government unique to Michigan that combines the flexibility of township governance with enhanced municipal powers. With over 41,000 residents, it's one of Michigan's largest and most populous charter townships, serving as the retail and residential hub of the Great Lakes Bay Region.
Unlike the neighboring City of Saginaw, the township operates under a different set of rules and powers—and that difference shapes everything from police services to how your streets are maintained. To see why Saginaw Township operates differently from its neighbors, it begins with understanding how Michigan divides local powers.
In Michigan, the key difference between townships, charter townships, cities, and villages lies in their degree of autonomy and the services they can provide. Michigan's system for creating and organizing local governments has evolved dramatically over nearly two centuries, and is one of about 20 states with township governments. This form of local government is concentrated in the Midwest and Northeast.
During the early territorial and statehood periods, each municipality required its own custom charter, which was passed by the state legislature —a time-consuming process that left communities with little autonomy. The shift toward standardized "home rule" in the early 20th century fundamentally transformed how Michigan cities, villages, townships, and counties could govern themselves.
Understanding this evolution—from special legislative acts to general incorporation laws—provides essential context for how local governments in Michigan operate today.
General Law Entity (Limited Powers)
A general law township operates under standard state township statutes with limited powers specifically defined by the Michigan Township Code, such as basic road maintenance, cemetery oversight, and essential township services.
Powers:
Tittabawassee, Freeland, and Richland Townships are examples of General Law Entities.
Statutory Entity (Enumerated Powers)
A charter township has adopted a charter under Michigan's Charter Township Act of 1947, granting it enhanced municipal-like powers specifically enumerated in state law, but not true home rule authority.
Powers:
Saginaw, Buena Vista, and Bridgeport are examples of Charter Townships.
Home Rule Entity (Residual Powers)
A home rule city or village has adopted its own charter under Michigan's constitution, giving it broad residual powers to exercise any authority not specifically prohibited by state or federal law.
The key limitation is that they still can't violate state laws that specifically restrict local authority, federal law, constitutional rights, or areas where the state has preempted local control (like gun regulation).
Saginaw, Frankenmuth, and Zilwaukee are examples of cities, and Chesaning, Birch Run, and St. Charles are examples of villages.
Living in Saginaw Charter Township means you're served by three distinct layers of government, each with specific responsibilities:
Each layer has its own elected officials, its own budget, and its own taxing authority—but they all show up as one combined property tax bill.
While charter townships are legally separate from cities, they often cooperate on the development of expensive infrastructure. Saginaw Township and the City of Saginaw provide a perfect example:
Water Service: The City of Saginaw treats the water at its water treatment plant, then sells it wholesale to Saginaw Township. The township operates its own water distribution system—the pipes, hydrants, and storage facilities that deliver water to homes and businesses. This arrangement is far more economical than the township building and maintaining its own treatment plant.
Wastewater Treatment: Similarly, the township uses a mixed approach for sewage treatment. Most township wastewater is sent to the City of Saginaw's Wastewater Treatment Facility for processing. However, residents in two specific areas—the Southwest Sewer District and the Center Road Sewer District—have their wastewater treated at Saginaw Township's own treatment facility. These arrangements mean some township residents indirectly rely on city infrastructure, while others use township-owned facilities, depending on where they live.
Why This Matters: This cooperation illustrates the intricate relationship between charter townships and cities. They may be legally separate and protected from annexation, yet still economically interdependent through service contracts. Some township services are funded through special assessment districts—meaning only properties that benefit from a specific service (like sewer connections) pay for it, rather than all taxpayers.
The township's budget is funded through several revenue sources:
Saginaw Charter Township levies 8.4403 mills for general operations—meaning property owners pay $8.4403 per $1,000 of taxable value. For example, a home with a taxable value of $100,000 pays $844.03 annually to the township. This millage rate generates the majority of township operating funds and covers essential services like police, fire protection, roads, parks, and administration.
Because Saginaw Township is the region's retail hub, commercial property taxes are crucial. Big-box stores, shopping centers, restaurants, and hotels along State Street, Bay Road, and Tittabawassee Road generate substantial tax revenue.
Michigan distributes a portion of state sales tax revenue back to local governments based on population. This provides some stability but can fluctuate with state budget priorities.
For specific improvements that benefit certain properties (like new sewers or street lighting), the township can levy special assessments only on those who benefit.
Unlike surrounding townships that attract major industrial investments (like Hemlock Semiconductor or Corning), Saginaw Township's economic model relies heavily on retail and commercial development. This makes the township's tax base vulnerable to shifts in consumer behavior and retail trends, but it also means the township serves as the shopping destination for the entire region—a role that concentrates both traffic and tax revenue.
(Funded by 8.4403 mills total)
How the township millage breaks down:
(Funded by 12.9100 mills total)
How the county millage breaks down:
The county also provides courts, jail facilities, and other services funded through the general operating millage.
How the school millage breaks down, funded by 16.1860-34.1860 mills depending on property type.
6.0000 mills (allocated) - Statewide school funding collected by the state (paid by all properties)
Saginaw Township’s millage is among the county’s higher rates because it funds a full police department; many peers rely on the Sheriff.
Highest Township Millage Rates:
Mid-Range:
Lowest Township Millage Rates:
Key Takeaways:
Let's break down an actual 2025 tax bill to see where your money goes. Michigan property taxes are measured in "mills"—each mill equals $1 per $1,000 of taxable value.
Important Note: Your home's taxable value is typically about half its market value due to Michigan's assessment rules. So a home with a market value of $200,000 might have a taxable value of $100,000.
Total: 37.5359 mills
Total: 55.5359 mills
Key Difference: Non-homestead properties (rentals, second homes, businesses, vacant land) pay nearly 50% more in total taxes, primarily due to the additional 18.0000 mills for school operating costs. This is why commercial property is so valuable to the township's tax base.
Important Note About Fire Protection: The 2.1000 mills for fire protection is a special assessment, not a general tax. Only properties located within the fire protection district pay this millage. If you don't see this on your tax bill, your property may be outside the fire district.
Tax Bills Are Split: Your annual property tax is divided into two payments—a summer tax bill (typically due in July) and a winter tax bill (typically due in December). The amounts are different because certain millages appear on the summer bill and others on the winter bill.
For a home with $100,000 taxable value:
For a commercial property with $100,000 taxable value:
Notice how the township receives the same amount regardless of property type, but schools receive significantly more from commercial properties.
If you're struggling to pay your property tax bill, don't ignore it. Michigan has a three-year foreclosure process for unpaid taxes; however, several programs and options are available to help you keep your home.
Contact the Saginaw County Treasurer immediately at (989) 790-5225. The sooner you reach out, the more options you have. The county may work with you on a payment plan with reasonable terms.
Apply for Michigan's Homestead Property Tax Credit (Form MI-1040CR). If you pay more than 3.5% of your household income in property taxes, you may qualify for a refund or credit when you file your state taxes. This "circuit breaker" program helps both homeowners and renters.
Poverty Exemption (MCL 211.7u): If your household income is at or below federal poverty guidelines, you may qualify for a reduction or complete exemption from your current year's property taxes. This is also called a "hardship exemption."
Who qualifies:
How to apply: Contact the Saginaw Township Assessor's office or the City of Saginaw Assessor if you live in the city. You'll need to complete Michigan Treasury Forms 5737 and 5739 and provide proof of income for everyone in your household. Applications are reviewed by the local Board of Review, typically meeting in July, December, and March.
Important: This exemption must be reapplied for annually—it doesn't automatically renew.
Additional Resources:
Michigan law provides a structured timeline before foreclosure:
Property tax assistance exists, but you must take action. Contact the county treasurer or your local assessor's office as soon as you know you'll have trouble paying. Programs can reduce or eliminate your current year's taxes, but only if you apply.
Saginaw Township operates as a charter township with enhanced powers, providing comprehensive services while maintaining its independence from the City of Saginaw. Your property tax bill funds three distinct layers of government—township, county, and schools—with schools taking the largest share, followed by county services, and then township operations.
Understanding this structure helps explain why certain services are provided the way they are, why tax bills differ between homesteads and commercial properties, and why the township's retail-focused economy matters so much to everyone's tax burden.
At its heart, Saginaw Township’s story is a reminder that local government isn’t distant or abstract. It’s the government you experience every day—and it works because residents vote on millages and choose, together, how to fund and shape their community.
These meetings are where millages are proposed, budgets are set, and service levels are debated—your voice matters.
Saginaw County was created on September 10, 1822, by a proclamation from Territorial Governor Lewis Cass. Still, it remained attached to Oakland County for administrative purposes until there was enough population to organize its own government. The county was fully organized on February 9, 1835.
This special charter system was cumbersome and led to the 1908 Michigan Constitution requiring home rule, which resulted in the Home Rule Acts of 1909 that standardized the incorporation process, as seen in the chronological list.
(PA stands for Public Act)
1895
1909
1945
1947
1967
1973
1975
There have been some significant changes since 1975. Here are the major ones:
2008
2018:
These are consolidation/modernization efforts rather than entirely new forms of government, but they're significant updates to how local governments operate.