SPECIAL ASSESSMENTS

Ann Arbor City Code tit. I, ch. 13

in effect

Ann Arbor City Code § 1:281 Definitions.

1:281. - Definitions. Unless the context specifically indicates otherwise, the following terms and phrases used in this chapter shall have the meanings defined below. (1) "Cost" when referring to the cost of any local public improvement, shall include the cost of surveys, plans, land, rights-of-way, spreading of rolls, notices, advertising, financing and construction and all other costs incident to the making of the improvement, the special assessments therefor and the financing thereof. (2) "Local public improvement" means a local public improvement, as defined in section 1:271 of Chapter 12, any part of the cost of which is to be assessed against one or more lots or parcels of land to be especially benefitted thereby, in proportion to the benefit to be derived therefrom. (3) Reserved. (4) "Sanitary sewer capital recovery charge" means a sanitary sewer capital recovery charge, as defined in section 1:271 of Chapter 12. (5) "Tax parcel" means any property, real or personal, subject to property tax or special assessment under the laws of the State of Michigan or the City Code for the City of Ann Arbor. (6) "Water capital recovery charge" means a water capital recovery charge, as defined in section 1:271 of Chapter 12. (Ord. No. 10-00, § 1, 3-6-00; Ord. No. 45-07, § 4, 10-1-07; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:282 Council authority.

1:282. - Council authority. The Council shall have power to determine that the whole or any part of the cost of any improvement shall be defrayed by special assessments upon the property especially benefitted, but the determination shall not be made until the preliminary proceedings provided for in section 1:284 shall have been completed. (Ord. No. 10-00, § 1, 3-6-00; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:283 Reserved.

Ann Arbor City Code § 1:284 Preliminary proceedings.

1:284. - Preliminary proceedings. (1) Before the City Council determines to make any local public improvement for which any part of the cost is to be defrayed by special assessment or single lot assessment, the City Administrator shall prepare, or cause to be prepared, plans and specifications therefor and an estimate of the cost thereof, and file the same with the City Clerk together with the Administrator's recommendation as to what proportion of the cost should be paid by special assessment and what part, if any, should be a general obligation of the city, as provided in section 1:274 of Chapter 12, the number of installments in which assessment may be paid and the land that should be included in the special assessment district. (2) After a report required by subsection (1) is filed with the Clerk, it shall be presented to the City Council and the report shall be available for public examination. (3) Whenever any land which should be included in the special assessment district for a local public improvement may not be assessed because it is owned by a public agency, a written agreement shall be reached whenever possible providing for the payment of the agency's benefiting share of the cost of the local public improvement. This agreement, or advice that agreement cannot be reached, shall be presented to the Council prior to the adoption by Council of the resolution provided for by section 1:286 of this chapter. (Ord. No. 14-59, 4-9-59; Ord. No. 5-61, 2-12-61; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 50-03, § 5, 1-5-04; Ord. No. 45-07, § 6, 10-1-07; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:285 Reserved.

Ann Arbor City Code § 1:286 Council determination.

1:286. - Council determination. (1) For local public improvements, after the report is presented to the City Council, the City Council may, by resolution, approve the plans and specifications and estimate the cost, determine to make the improvement and to defray the whole or any part of the cost of the improvement by special assessment upon the property especially benefited in proportion to the benefits to the property. By resolution the City Council shall approve the plans and specifications for the improvement; determine the estimated cost of it; determine what proportion of the cost shall be paid by special assessment or single lot assessment upon the property or properties especially benefited and what part, if any, shall be a general obligation of the city; designate the district or land and tax parcels upon which special assessments shall be levied; and direct the Assessor to prepare a special assessment roll in accordance with the City Council's determination. (2) For water supply system and sanitary sewer system improvements, the share of the cost to be paid by the properties connecting to the system shall be the water and sanitary sewer capital recovery charges calculated as provided in Chapters 27 and 28 and paid by those properties at the time of connection or by single lot assessment levied at the time of connection. (Ord. No. 14-59, 4-9-59; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 50-03, § 6, 1-5-04; Ord. No. 45-07, § 7, 10-1-07; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:287 Preparation of roll.

1:287. - Preparation of roll. The Assessor shall then prepare a special assessment roll including all lots and tax parcels within the special assessment district designated by the Council, and shall assess to each lot or tax parcel the relative portion of the whole sum to be levied against all the lands in the special assessment district as the benefit to the lot or tax parcel bears to the total benefits to all lands in the district. There shall also be entered upon the roll the amount which has been assessed to the city at large, if any. (Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:288 Filing roll.

1:288. - Filing roll. When the Assessor shall have completed the assessment roll, he or she shall attach to it, or endorse upon it, his or her certificate to the effect that the roll has been made by him or her pursuant to a resolution of the Council (giving date of adoption of the resolution) and that in making the assessments the Assessor has as near as may be, according to the Assessor's best judgment, conformed in all respects to the directions contained in the resolution, and to the City Charter and the provisions of this chapter. Thereupon the assessor shall file the special assessment roll with the Clerk who shall present it to the Council. (Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:289 Determination and notice of public hearing.

1:289. - Determination and notice of public hearing. Upon receipt of a special assessment roll the City Council shall order it and the information presented to the City Council by the City Administrator pursuant to section 1:284 filed in the office of the City Assessor for public examination; shall fix the time and place when it will meet and review the roll and hear all persons interested in the necessity of the improvement, and shall direct the City Clerk to give notice of the hearing. The notice shall specify the time and place of the hearing and shall be published in the official newspaper of the city, not less than 10 days prior to the date of the hearing. A like 10 days notice shall also be sent by mail by the City Clerk to each owner of the property subject to assessment, as indicated by the records of the City Assessor's office, but failure to send the notice to any owner of property shall not invalidate the proceedings or assessments. All notices shall state clearly the costs of the improvements described in the roll and that they are either "estimated costs" or "final costs." For water main and sanitary sewer improvements, the notice shall state clearly that the amounts calculated for residential properties are calculated in accordance with sections 1:271 and 1:274 of Chapter 12 and are "final costs." (Ord. No. 1-67, 1-9-67; Ord. No. 67-69, 8-31-70; Ord. No. 25-75, 6-2-75; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 50-03, § 7, 1-5-04)

Ann Arbor City Code § 1:290 Objections to roll.

1:290. - Objections to roll. Any person aggrieved by the special assessment roll or the necessity of the improvement may file objections to the roll in writing with the Clerk prior to the close of the hearing. The written objections shall specify in what respect the person believes him or herself aggrieved. No original assessment roll shall be confirmed except by the affirmative vote of 8 members of the Council if prior to the confirmation written objections to the proposed improvement have been filed by the owners of property which will be required to bear over 50% of the amount of the special assessment. (Ord. No. 1-67, 1-9-67; Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:291 Public hearing and confirmation.

1:291. - Public hearing and confirmation. The Council shall meet and review the special assessment roll at the time and place appointed, or at an adjourned date, and shall hear all persons interested in the necessity of the improvements and all oral or written objections to it. The Council may correct the roll as to any assessment or description of any lot or tax parcel, or other errors appearing in it. Any changes made in the roll shall be noted in the Council's minutes. After the hearing and review, the Council may confirm the special assessment roll with the corrections as it may have made, if any, or may refer it back to the Assessor for revision or may annul it and any proceedings in connection with it. Upon confirmation of any special assessment roll, the Council shall determine the number of installments in which the assessments may be paid and shall determine the rate of interest to be charged on installments but not to exceed 1% per annum above the interest rate of any bonds issued to finance the improvements. The Clerk shall endorse the date of confirmation upon each special assessment roll. The roll shall, upon confirmation, be final and conclusive. (Ord. No. 27-68, 6-17-68; Ord. No. 67-69, 8-31-70; Ord. No. 40-74, 9-30-74; Ord. No. 20-80, 5-5-80; Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:292 Assessing single lots or tax parcels.

1:292. - Assessing single lots or tax parcels. (1) Single lot assessments for expenses other than local public improvements, water supply system improvements and sanitary sewer system improvements Except for local public improvements, water supply system improvements and sanitary sewer system improvements, as defined in section 1:271 of Chapter 12, when any expense shall have been incurred by the city upon or in respect to any single lot or tax parcel, which expense is chargeable against it and the owner of it under the provisions of the Charter, this Code, or law of the State of Michigan, an account of the labor, material or services for which the expense was incurred, verified by the applicable service unit, with a description of the lot or tax parcel and the name of the owner, if known, shall be immediately charged and billed to the owner, tenant, or registered agent, if known, and reported to the City Treasurer. Notwithstanding the foregoing exception for local public improvements, assessments for the construction, rebuilding and/or repair of sidewalks shall be levied under the provisions of this subsection when done by the city under the provisions of Chapter 49. The bill shall be sent by first class mail to the owner of the lot or tax parcel with respect to which the expense was incurred by the city. The City Chief Financial Officer or designee shall from time to time verify and report to the City Council the unpaid charges for services furnished to or expense incurred for any premises which on the last day of the month preceding the date of the report to the City Council have remained unpaid for a period of not less than 120 days. At the meeting the City Council shall adopt, in accordance with Section 10.4 of the Charter, a special assessment resolution covering each lot or tax parcel for which charges have not been paid in full. As many lot or tax parcels may be included in a single resolution as shall be convenient. Immediately after the adoption of the resolution, the City Clerk or designee shall give notice to the lot or tax parcel owners. The notice shall be sent by first class mail to the last known addresses of the persons as shown on the assessment roll of the city, or by publication. The notice shall state the basis of the assessment, the amount, and shall give a reasonable time, not less than 30 days, within which payment shall be made to the Treasurer. The notice shall include notice that failure to pay within the time set will result in a penalty of 10% of the amounts due. In all cases where payment is not made within the time set, the fact shall be reported by the City Treasurer to the City Assessor, who shall charge the amounts, together with a penalty of 10% of the amounts, against the persons or lots or tax parcels chargeable on the next tax roll. Charges so assessed shall be collected in the same manner as general city taxes. (2) Single lot assessments for local public improvements. When any expense shall have been incurred by the city for a local public improvement, as defined in section 1:271 of Chapter 12, for which the expense benefits and is chargeable against a single lot or tax parcel under the provisions of the Charter, this Code, or law of the State of Michigan and is not of that class required to be pro-rated among several lots and tax parcels in a special assessment district, the City Treasurer shall immediately charge and bill the owner of the lot or tax parcel with respect to which the expense was incurred by the city. For local public improvements, the cost to be assessed against the single lot or tax parcel shall be calculated in accordance with sections 1:271 and 1:274 of Chapter 12. The bill shall include notice to the owner that if the bill has not been paid in full when due, that the City Treasurer may seek City Council approval to place a special assessment upon the lot or tax parcel for the charges. The City Council shall adopt, in accordance with Section 10.1 of the Charter, a special assessment resolution covering each lot or tax parcel for which charges have not been paid in full. Provided that assessments for the construction, rebuilding and/or repair of sidewalks when done by the city under the provisions of Chapter 49, relative to sidewalks, shall be levied under the provisions of subsection (1) of this section. Upon adoption of the resolution, the City Council may authorize installment payments as provided in section 1:275 of Chapter 12, and if installment payments are authorized, shall determine the number of installments, and shall determine the rate of interest to be charged in accordance with section 1:271(3). (3) Single lot assessments for connection to the city water supply system or sanitary sewer system. When a property connects to, adds a connection to, or increases the size of its connection to the city water supply system or sanitary sewer system, the lot or tax parcel on which the connecting property is located shall pay the water or sanitary sewer capital recovery charge that has been calculated as provided in Chapters 27 and 28. The City Council shall adopt a single lot assessment resolution for the lot or tax parcel of each connecting property for which water and/or sanitary sewer capital recovery charges have not been paid in full. Upon adoption of the resolution, the City Council may authorize installment payments as provided in section 1:275 of Chapter 12, and if installment payments are authorized, shall determine the number of installments, and shall determine the rate of interest to be charged in accordance with subsection 1:271(3). (Ord. No. 27-68, 6-17-68; Ord. No. 40-74, 9-30-74; Ord. No. 20-80, 5-5-80; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 50-03, § 8, 1-5-04; Ord. No. 45-07, § 8, 10-1-07; Ord. No. 09-10, § 1, 4-6-09; Ord. No. 16-03, § 2, 3-21-16; Ord. No. 19-22, § 1, 7-1-19)

Ann Arbor City Code § 1:293 General procedure inapplicable.

1:293. - General procedure inapplicable. The single lot assessment resolution provided for in subsection 1:292(1) shall be treated as a special assessment roll and the adoption of the resolution shall correspond to the confirmation of a special assessment roll. The provisions of the preceding sections of this chapter with reference to special assessments generally and the proceedings necessary before making the improvements, shall not apply to assessments contemplated under subsection 1:292(1). Section 1:294 and the following sections of this chapter shall, however, be applicable to single lot or tax parcel assessments, except that the additional 5% penalty on unpaid installments as provided for in sections 1:297 and 1:299 shall not apply to assessments authorized under subsection 1:292(1). (Ord. No. 49-64, 11-2-64; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 50-03, § 9, 1-5-04; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:294 Attachment of lien.

1:294. - Attachment of lien. All special assessments contained in any special assessment roll, including any part deferred as to payment, shall, from the date of confirmation of the roll, constitute a lien upon the respective lots or tax parcels assessed and until paid shall be a charge against the respective owners of the several lots and tax parcels. The lien shall be of the same character and effect as the lien created for city taxes and shall include accrued interest and penalties. No judgment or decree, nor any act of the Council vacating a special assessment, shall destroy or impair the lien of the city upon the lot or tax parcels assessed for the amount of the assessment as may be equitably charged against the it, or as by a regular mode of proceeding might be lawfully assessed upon it. (Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:295 Due date.

1:295. - Due date. (1) Upon confirmation of any special assessment roll for a local public improvement, the Council shall determine the number of installments in which the assessments may be paid as provided in section 1:275 of Chapter 12, the rate of interest to be charged in accordance with subsection 1:271(3), and the date when the interest shall commence. The due date of the first installment shall be the first July 1 after the Council resolution. The Treasurer shall give notice of the due date of the single lot assessment or of the first installment if divided into installments and shall collect that payment or first installment in the manner prescribed for taxes in Chapter 9 of the Charter. To collect the payment or first installment for a special assessment for a local public improvement, the City Treasurer shall have the same rights and remedies as provided in the Charter for the collection of taxes. If the special assessment is divided into more than one installment, the due dates and process for collection of the subsequent installments shall be as provided in subsection 1:299(1). (2) Water capital recovery charges and sanitary sewer capital recovery charges shall be due when a property connects to the water system or sanitary sewer system. At the time of connection, the amount of the water and sanitary sewer capital recovery charges shall be the amounts then in effect under Chapters 27 and 28, respectively, and any amounts not paid at the time of connection shall be levied as a single lot assessment on the lot or tax parcel on which the connecting property is located. For such single lot assessments, the Council shall determine the number of installments in which the assessments may be paid as provided in section 1:275 of Chapter 12, the rate of interest to be charged in accordance with subsection 1:271(3), and the date when the interest shall commence. The due date of the first installment shall be the first July 1 after the Council's resolution. The Treasurer shall give notice of the due date of the single lot assessment or of the first installment if divided into installments and shall collect that payment or first installment in the manner prescribed for taxes in Chapter 9 of the Charter. To collect the payment or first installment for a single lot assessment for water and for sanitary sewer capital recovery charges, the City Treasurer shall have the same rights and remedies as provided in the Charter for the collection of taxes. If the single lot assessment is divided into more than one installment, the due dates and process for collection of the subsequent installments shall be as provided in subsection 1:299(2). (Ord. No. 27-68, 6-17-68; Ord. No. 40-74, 9-30-74; Ord. No. 20-80, 5-5-80; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 45-07, § 9, 10-1-07; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:296 Handling of assessment roll.

1:296. - Handling of assessment roll. The assessment roll shall be transmitted by the Clerk to the Treasurer for collection immediately after its confirmation. The Treasurer shall divide the assessment into installments when so ordered by the Council. However, if the division operates to make any installment less than $10.00, the Treasurer shall reduce the number of installments so that each installment shall be above and as near $10.00 as possible. The Treasurer shall mail statements of the several assessments to the respective owners, as indicated by the records of the Assessor, of the several lots and tax parcels assessed, stating the amount of the assessment and the manner in which it may be paid; and clearly stating on the first bill that the amount due is based upon "estimated costs" or "final costs" for the project described. However, failure to mail any statement shall not invalidate the assessment or entitle the owner to an extension of time within which to pay the assessment. (Ord. No. 67-69, 8-31-70; Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:297 Delinquent first installment.

1:297. - Delinquent first installment. When any special assessment, or its first installment when divided into installments, is unpaid for more than 30 days on the first day of September in any year, that fact shall be reported by the Treasurer to the Assessor who shall spread the assessment, on the December tax roll, together with interest accrued on the entire unpaid balance, computed to June 1st of the current year, plus a charge of 5% of the amount of such assessment or installment and the interest. Further, when any first installment is due and unpaid for 30 days on the first day of May, the first installment shall be added to the second installment together with interest accrued to June 1 on the entire unpaid balance, and both installments with the interest accrued shall be billed on June 1 in the same manner as second installments, as outlined in section 1:299. (Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:298 Early payment.

1:298. - Early payment. The whole of any assessment, or 1 or more full installments of it, may be paid during the first 30 days after confirmation of the roll, without interest or penalty. After expiration of this 30-day period, the second and subsequent installments, not yet reported to the assessor for adding to the December tax roll, may be discharged by paying the face amount of the installment, plus interest computed to the date of payment. (Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:299 Second and subsequent installments.

1:299. - Second and subsequent installments. (1) For special assessments for local public improvements, the second and subsequent installments shall be due and payable on the first day of July annually in each succeeding year following the year in which the first installment was due and payable, and shall be collected by the Treasurer from the original special assessment roll. The Treasurer shall give notice of the due date of each installment and shall collect each installment in the manner prescribed for taxes in Chapter 9 of the Charter. In addition to the principal amount of each annual installment, there shall be added to it and collected from the special assessment roll by the Treasurer as a part of each installment, the interest due on the entire unpaid balance of the special assessment computed to July first of the year in which the installment is due; provided, that when any annual installment shall have been prepaid, then there shall be due and payable on July first of such year only the interest upon the unpaid balance of the special assessment. In collecting each installment from the special assessment roll, the City Treasurer shall have the same rights and remedies as provided in the Charter for the collection of taxes. (2) For single lot assessments for water capital recovery charges and sanitary sewer capital recovery charges, second and subsequent installments shall be due and payable on the first day of July annually in each succeeding year following the year in which the first installment was due and payable, and shall be collected by the Treasurer from the original single lot assessment. The Treasurer shall give notice of the due date of each installment, and shall collect each installment, in the manner prescribed for taxes in Chapter 9 of the Charter. In addition to the principal amount of each annual installment, there shall be added to it and collected for the single lot assessment by the Treasurer as a part of each installment, the interest due on the entire unpaid balance of the single lot assessment computed to July first of the year in which the installment is due; provided, that when any annual installment shall have been prepaid, then there shall be due and payable on July first of such year only the interest upon the unpaid balance of the single lot assessment. In collecting each installment for the single lot assessment, the City Treasurer shall have the same rights and remedies as provided in the Charter for the collection of taxes. (Ord. No. 10-00, § 1, 3-6-00; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:300 Determining actual cost.

1:300. - Determining actual cost. Upon completion of the local public improvement and payment of its cost, the City Administrator shall certify the total cost of the improvement to the City Council, together with the amount of the original roll for the local public improvement. (Ord. No. 10-00, § 1, 3-6-00; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:301 Deficiency assessments and refunds.

1:301. - Deficiency assessments and refunds. Should the assessments in any special assessment roll, including the city's share, prove insufficient for any reason to pay the cost of the local public improvement for which they were made, then the City Council may make additional assessments against the city and the several lots and tax parcels within the special assessment district; and shall assess to each lot or tax parcel the relative portion of the whole sum to be levied against all the lands in the special assessment district as the benefit to each lot or tax parcel bears to the total benefits to all lots or tax parcels in the district; or the City Council may determine that the deficiency shall be paid by the city but the total amount assessed against any lot or tax parcel shall not exceed the value of the benefits received from the improvement. In the event the deficiency assessment to be levied against the benefiting lot or tax parcel as described above exceeds the original estimated cost by 15% or more, City Council shall order a public hearing with the notice of the hearing to be as described in section 1:289 of the chapter. The hearing shall be conducted upon the spread of the deficiency as determined by the final cost certified to City Council by the City Administrator as provided in section 1:300 of this chapter. Should the assessments levied prove to be more than necessary to defray the cost of the local public improvement, then the City Council may, by resolution, order the excess to be applied to the next unpaid installment of the special assessment against each lot or parcel. Any excess as to any lot or tax parcel of land which cannot be applied as described may be refunded in cash to the persons who are the record owners of the properties on the date of the passage of the resolution ordering the refund. (Ord. No. 7-58, 4-21-58; Ord. No. 67-69, 8-31-70; Ord. No. 10-00, § 1, 3-6-00; Ord. No. 14-01, § 1, 4-16-01; Ord. No. 50-03, § 10, 1-5-04; Ord. No. 16-03, § 2, 3-21-16)

Ann Arbor City Code § 1:302 Reassessment in event of illegality.

1:302. - Reassessment in event of illegality. Whenever any special assessment shall, in the opinion of the Council be invalid by reason of irregularity or informality in the proceedings, or if any court of competent jurisdiction shall adjudge the assessment to be illegal, the Council shall, whether the improvement has been made or not, or whether any part of the assessment has been paid or not, have power to cause a new assessment to be made for the same purpose for which the former assessment was made. All proceedings on the reassessment and for the collection of it shall be conducted in the same manner as provided for in the original assessment, and whenever the assessment, or any part of it, levied upon any premises has been set aside, if the assessment has been paid and not refunded, the payment made shall be applied upon the reassessment and the reassessment shall to that extent be deemed satisfied. (Ord. No. 10-00, § 1, 3-6-00)

Ann Arbor City Code § 1:303 Collection by court action.

1:303. - Collection by court action. In addition to any other remedies and without impairing the lien, any delinquent special assessment, together with interest and penalties, may be collected in an action in assumpsit in the name of the city against the person assessed, in any court having jurisdiction of the amount. If in any action it shall appear that by reason of any irregularities or informalities the assessment has not been properly made against the defendant or upon the lots or tax parcels sought to be charged, the court may, nevertheless, on satisfactory proof that expense has been incurred by the city which is a proper charge against the defendant or the lots or tax parcels in question, render judgment for the amount properly chargeable against the defendant or upon the lots or tax parcels. (Ord. No. 10-00, § 1, 3-6-00)

Source: City of Ann Arbor, Michigan, Code (Municode Library, library.municode.com)URL: https://library.municode.com/mi/ann_arbor/codes/code_of_ordinances?nodeId=TITIAD_CH13SPASFetched: 11/8/2026