Kevin Androsian v. City of Taylor, 366521

Plaintiffs, representing themselves and similarly situated individuals, challenged property taxes levied by several Michigan municipalities used to fund healthcare benefits for retired police officers and firefighters.
The municipalities imposed these taxes under authority of Act 345 (1937), which establishes retirement systems and includes provisions for funding pensions and other benefits via property tax.
Plaintiffs argued that funding retiree healthcare with these taxes lacked pre-Headlee (1978) authorization, thus requiring voter approval per the Headlee Amendment to the Michigan Constitution.
Defendants contended that Act 345's broad authorization covers healthcare benefits as “other benefits payable,” permitting such taxation without additional voter approval.
The trial courts granted summary disposition for the defendants, relying heavily on the Court of Appeals' prior decision in Bate v. St. Clair Shores, which interpreted Act 345 to allow taxation for retiree healthcare.
Plaintiffs appealed, seeking a conflict panel, and raised additional arguments regarding the use of separate pension and OPEB (Other Post-Employment Benefits) plans and specific administrative practices in Westland.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Act 345 authorizes taxing for retiree healthcare benefits under "other benefits payable"	Act 345 does not authorize taxes for retiree healthcare, only pensions; thus, voter approval required	Act 345 allows taxes for pensions and other retirement benefits, including healthcare	Act 345 authorizes taxes for healthcare; no Headlee violation
Impact of separate pension and OPEB plans on Act 345’s authority	Separate plans show healthcare is outside Act 345 retirement system, so taxes can’t fund healthcare	Retirement system can be administered via separate plans; both are parts of retirement system	Separate administration doesn’t affect authority to tax for both benefits
Whether factual distinctions in Westland’s administration preclude summary disposition	Westland’s failure to follow procedural steps for OPEB benefits shows lack of Act 345 authority	Technical noncompliance with administration doesn’t impact substantive Act 345 tax authority	Noncompliance doesn’t negate Act 345’s authorization; summary disposition appropriate
Applicability of California precedent (Dailey v. San Diego)	California case shows healthcare isn’t a retirement benefit	Michigan law and precedent control; Bate is directly on point	California precedent not persuasive or applicable

Bate v. St. Clair Shores, 347 Mich. App. 771 (Mich. Ct. App. 2023) (held that Act 345 authorizes taxation for healthcare benefits as part of retirement benefits)
American Axle & Mfg., Inc. v. Hamtramck, 461 Mich. 352 (Mich. 2000) (Headlee Amendment allows pre-existing taxes even if circumstances change)
Studier v. Mich. Pub. Sch. Employees Retirement Bd, 472 Mich. 642 (Mich. 2005) (analyzed scope of term "accrued financial benefits"—distinguished in current case)