[HISTORY: Adopted by the City Commission of the City of Lapeer 12-19-2013 (Ch. 64 of the 1978 General Ordinances). Amendments noted where applicable.]
This is a chapter to provide for the mechanism and procedure to effect improvements by special assessment through such power as reserved to the City by statute.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
COST
When referring to the cost of any public improvement, includes the cost of services, plans, condemnation, spreading of rolls, notices, advertising, financing, construction and legal fees and all other costs incident to the making of such improvement, the special assessments therefor and the financing thereof.
PUBLIC IMPROVEMENT
Any public work or public improvement for which any part of the cost is to be assessed against one or more lots or parcels to be specially benefited thereby.
A. 
The City Commission, by resolution, may initiate proceedings for making public improvements and defraying the entire cost or any part thereof by special assessment upon the property specially benefited and assessments may be levied before, during, or after construction. The resolution shall refer the matter to the City Manager, who shall make an investigation of the proposed public improvement and report findings to the City Commission. The Commission, in order to ascertain whether or not a reasonable number of property owners to be assessed desire a public improvement to be made under the provisions of this chapter, may request that a petition thereof be presented to it, but in the event a petition be so filed, it shall be advisory only and shall not be jurisdictional.
B. 
Initiation of public improvements may be by petition to the City Commission, signed by 66% of property owners whose property is subject to being benefited. Such petition shall be printed on forms approved by the City Attorney and set forth the location, extent and character of the desired public improvement, and include an affidavit by one or more of the circulators that the signatures appearing thereon are genuine and that each signer declares himself to be the owner of interest in the land indicated. Such petitions shall be filed with the City Clerk and presented to the Commission within 60 days after being filed. All such petitions shall be deemed advisory only, and shall not obligate the Commission to act favorably thereon. Should the City Commission consider commencement of any petition for public improvements, such petition shall proceed in the same manner as provided in this chapter for public improvements initiated by the City Commission.
A. 
The City Manager's investigation and report referred to in § 64-3 shall include an analysis of the estimated cost of the proposed public improvements; map showing the public improvement and location thereof, estimate of the life of the improvement; necessity of the proposed improvement; what part or proportion thereof should be paid by special assessments upon the property especially benefited and what part, if any, should be paid by the City at large; if a petition is filed, it shall be reviewed by the City Assessor for determination that said petition contains the required number of valid signatures; and other pertinent information as will permit the Commission to consider the cost, extent and necessity of the improvement proposed and how the improvement shall be financed.
B. 
The City Manager shall file such report with the City Clerk; it shall be presented to the City Commission and shall be available for public examination. Whenever any land which should be included in the special assessment district may not be assessable for any reason, a written agreement may be reached providing for the payment of the owner's share of the cost of the improvement.
C. 
The Commission shall not finally determine to proceed with the making of any public improvement until such report of the City Manager has been filed, nor until after a public hearing has been held by the Commission for the purpose of hearing objections to the making of such public improvement.
Upon receipt of the report of the City Manager, the Commission may then proceed with the proposed public improvement by resolution. The resolution shall declare that the City Manager's report be filed with the City Clerk for public examination; determine the necessity of the public improvement and setting forth the nature thereof; and designate the special assessment district to be affected and describe the lands to be assessed; determine what part or proportion of such cost shall be paid by special assessment upon the property especially benefited and what part, if any, shall be borne by the City at large; and determine the estimated life of such improvement. The City Commission shall also fix a time and place when it will meet and hear objections to the necessity of the proposed public improvement and to the special assessment district(s); direct the City Clerk to give notice of a public hearing on the necessity of the proposed public improvement at which time and place opportunity will be given interested persons to be heard. Such notice shall be given by one publication in a newspaper published or circulated within the City and by first-class mail addressed to each person having an interest in property to be assessed as shown on the current assessment roll for the City, such publication and mailing to be made at least 10 full days prior to the date of the hearing; the notice shall state that the proposed map and estimate are on file with the City Clerk and contain a description of the proposed assessment area. The hearing required by this section may be held at any regular, adjourned or special meeting of the Commission. (State law references: MCLA § 211.741)
If, at or prior to the hearing on the public improvement, property owners whose property in the special assessment district object to the necessity of the proposed public improvement by more than 60%, the public improvement shall not be made by proceedings authorized by this chapter without a 4/5 vote of the members of the Commission.
At the public hearing on the necessity of the proposed public improvement, all persons interested shall be given an opportunity to be heard, after which the Commission may revise, correct, amend or change the plans, estimates and/or district, provided that no property shall be added to the district until notice is provided upon such owners and a hearing afforded such owners. Should the Commission modify the scope of the public improvement, if necessary, in such a manner as they shall deem to be in the best interest of the City as a whole, provided that the amount of work is increased or additions are made to the district, then another hearing shall be held pursuant to notice as described in § 64-5.
No preconstruction deviation from original plans or specifications as adopted shall be permitted by any officer or employee of the City without authority of the Commission by resolution. A copy of the resolution authorizing such changes or deviation shall be certified by the City Clerk and attached to the original plans and specifications on file. Nothing in this section shall prohibit changes or adjustments to the plans, specifications, or materials as may become necessary to address site conditions or unforeseen circumstances during the course of construction of such public improvement.
No contract or expenditure, except for the cost of bonding, public notifications, preparation of necessary plans, specifications and estimates of costs, for any public improvement to be financed in whole or part by special assessment shall be made before the confirmation of the special assessment roll for such public improvement.
After the public hearing on the necessity of the proposed public improvement as provided in § 64-7, the Commission may proceed with such public improvement by resolution. The resolution shall declare the determination of the Commission to proceed with the public improvement and approve necessary plans, specifications and estimates of cost, as originally presented or as revised corrected, amended or changed. The City Commission shall also direct the Assessor to prepare a preliminary special assessment roll in which shall be entered and described all the lots and parcels of lands to be assessed, with the names of the respective owners thereof, if known, and the amount to be assessed against each lot or parcel of land, which amount shall be such relative portion of the whole sum to be levied against all the lots and parcels of land in the special assessment district. There shall also be entered upon said roll the amount, if any, which has been assessed to the City at large. When the Assessor shall have completed the preliminary assessment roll, he shall affix thereto a certificate stating that it was made pursuant to a resolution of the Commission of said City adopted on a specified date and that in making such assessment roll he has, according to his best judgment, conformed in all respects to the directions contained in such resolution, the City Charter, and this chapter and file said report with the City Clerk for presentation to the City Commission.
Upon receipt of the preliminary special assessment roll, the City Commission may accept the same by resolution. The resolution shall order the preliminary special assessment roll be filed with the City Clerk for public examination; shall fix a time and place when it will meet and hear objections to the preliminary special assessment roll; direct the City Clerk to give notice of a public hearing on the preliminary special assessment roll at which time and place opportunity will be given interested persons to be heard. Such notice shall be given by one publication in a newspaper published or circulated within the City and by first-class mail addressed to each person having an interest in property to be assessed as shown on the current assessment roll for the City; such publication and mailing to be made at least 10 full days prior to the date of the hearing; the notice shall include a statement that objections to said preliminary special assessment roll may be made in writing prior to the close of hearing or by personal appearance at the time of hearing is required in order to appeal the amount of the special assessment to the State Tax Tribunal; and a copy of the preliminary special assessment roll shall be attached to each notice. The hearing required by this section may be held at any regular, adjourned or special meeting of the Commission. (State law references: MCLA § 211.741)
Objections to the preliminary special assessment roll and/or persons deeming themselves aggrieved by a preliminary special assessment roll may file objections in writing prior to the close of the hearing or by personal appearance at the time of the hearing to review said preliminary special assessment roll. Such objection shall specify, in detail, in what respect the objectors deem themselves aggrieved. A written protest filed prior to the close of said hearing or an oral protest made by an owner or party of interest or his or her agent at the time of said hearing is required in order to appeal the amount of the special assessment to the State Tax Tribunal. A written appeal of the special assessment may be filed with the State Tax Tribunal within 30 days after confirmation by the City Commission of the special assessment roll.
At the public hearing on the preliminary special assessment roll, the Commission shall consider any objections thereto, after which the Commission may confirm such special assessment roll as reported to it by the Assessor, or may correct the same as to any matter or other errors appearing thereon and confirm it as so corrected, or may refer it back to the Assessor for revision, or may annul it and any proceedings connected herewith and direct a new roll to be made, in which case the same proceedings shall be followed as in the case of original assessment. If any changes are made which result in additions to the special assessment district or increases in the special assessment roll, the same proceedings shall be followed as in the case of the original assessment. Any hearing may be adjourned from time to time without further notice.
After the public hearing on the preliminary special assessment roll, the Commission may determine to proceed with the public improvement and confirm the roll with such changes as it may have made, if any, by resolution. The resolution shall confirm such roll and place it on file in the City Clerk's office; establish the number of annual installments, not to exceed 10, and the due date of the first installment and subsequent installments; establish the rate of interest chargeable on the unpaid balance from and after the due date; establish penalties for late payments; establish a collection fee not exceeding 5% of the unpaid balance or installment to compensate for the accounting services required if installments are established; and direct the City Clerk to attach a warrant certifying the amounts appearing therein and authorizing the spread of the various sums on a special assessment roll or upon the tax rolls for the City for the full amounts or in annual installments as directed by Commission. Upon confirmation, the roll shall be final and conclusive for the purpose of the improvement to which it applies, subject only to conform to the actual costs of the improvement.
All special assessments contained in any special assessment roll, including any part thereof deferred as to payment, shall from the date of confirmation of such roll, constitute a lien upon the respective lots or parcels of land assessed and, until paid, shall be a charge against the respective owners of the several lots and parcels of land. Such lien shall be of the same character and effect as the lien created for City taxes and shall include accrued interests, collection fees, and penalties. No judgment or decree, nor any act of the Commission vacating a special assessment, shall destroy or impair the lien of the City upon the premises assessed for such amount of the assessment as may be equitably charged against the same, or as by a regular mode of proceeding might be lawfully assessed thereon.
A. 
The special assessment roll shall be transmitted by the Clerk to the Treasurer for collection, immediately after its confirmation. The Treasurer shall divide the assessments into installments when so ordered by the Commission. The Treasurer shall mail statements of the several assessments to the respective owners, as indicated by the roll and the records of Treasurer of the several parcels of land assessed, stating the amount of the assessment and the manner in which it may be paid; provided, however, that failure to mail any such statement shall not invalidate the assessment or entitle the owner to an extension of time within which to pay the assessment.
B. 
The whole or part of any special assessment may be paid at any time after the date of confirmation of the special assessment roll until such time as the Commission shall prescribe, without interest or penalty.
C. 
All special assessments or special assessments deferred by installments, except the first, shall bear interest from the date the first installment is due, at a rate not in excess of that authorized by law, as authorized by the City Commission, which will be the net interest cost of the bond plus 1%, or if bonds are not issued, 6%, payable annually; provided, however, that a different period of time was not provided for as prescribed in § 64-16B.
D. 
The City Treasurer shall add to all special assessments or installments a collection fee, as authorized by the City Commission in § 64-14, not exceeding 5% of the unpaid balance of the amount of the special assessment or installment. Every special assessment or installment thereof one month in default because of nonpayment shall have added thereto a collection penalty fee of 1% for each month or fraction thereof so in default. All collection fees shall belong to the City and shall be collectible in the same manner as the collection fee for City taxes.
E. 
Any special assessment or installments which has not been spread upon the tax rolls may be discharged by paying the face amount thereof together with interest, penalties, and/or collection fees from the date of confirmation to date of payment.
F. 
The City's portion of the cost of any improvement may be divided into installments the same as the assessments against lands in the district, and in such case, the provisions of this chapter relative to such installments shall apply to the City installments insofar as they are applicable.
G. 
In addition to any other remedies and without impairing the lien therefor, any delinquent special assessment or installments, together with interest, collection fees and penalties, may be collected in an action of assumpsit in the name of the City against the person assessed or liable for the same, in any court having jurisdiction thereof. If in any such 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 premises sought to be charged, the court may, nevertheless, on satisfactory proof that expenses has been incurred by the City, which is a proper charge against the defendant or the premises in question, render judgment for the amount properly chargeable against such defendant or upon such premises.
A. 
The Treasurer shall be charged with collecting all special assessments as stated in the resolution confirming the special assessment roll by the City Commission. After an assessment or any installment becomes delinquent, the Treasurer may add the entire assessment or installment thereof, with any interest, collection fees or penalty to the annual tax bill of the City attributable to the lot or premises involved with the same rights and remedies as provided in the Charter for the collection of taxes, or he may collect it separately by tax sale procedure as provided in this chapter.
B. 
Any delinquent special assessment or installment shall be certified as delinquent listing the name, property number, and amount of such delinquency including interest, collection fees, and penalties to the City Commission by the City Treasurer prior to placement on the City tax roll.
C. 
Any delinquent special assessment or installment added to the City tax roll shall appear in a column headed special assessments together with any interest, collection fees, or penalties, together with an additional penalty of 5% of such total amount.
If any person shall neglect or refuse to pay his assessment upon demand, the Treasurer may seize and levy upon any personal property belonging to such person, found within the City or elsewhere in the State of Michigan, and sell the same at public auction, first giving six days' notice of the time and place of such sale by posting such notice in three of the most public places in the City or township where such property may be found, the proceeds of such sale, or so much thereof as may be necessary for that purpose, shall be applied to the payment of the assessment and the cost and expense of such seizure and sale, and the surplus shall be paid to the person entitled thereto.
Upon completion of the improvement and the payment of the cost thereof, the City Manager shall report to the City Commission the total cost of the improvement, together with the amount of the original special assessment roll for such improvement.
Should the assessments in any special assessment roll prove insufficient for any reason, including the noncollection thereof, to pay for the improvement for which they were made or to pay the principal and interest on the bonds issued in anticipation of the collection of such assessments, then the Commission may make additional pro rata assessments to supply the deficiency, but the total assessed against any lot or parcel of land shall not exceed the value of the benefits received from the improvements.
Should the special assessment or the proceeds of sale of any special assessment bonds prove larger than necessary to meet the costs of the improvement or to meet the principal and interest requirements of any special assessment bonds and expenses incidental thereto, the excess, if less than 5% of the total project costs, shall be placed in the General Fund of the City. If such excess is more than 5%, the entire excess shall be refunded on a pro rata basis to the then-owners of the property assessed as shown by the current assessment roll of the City. Such refund shall be made by credit against future unpaid installments to the extent such installments then exist and the balance of such refund shall be in cash. No refunds may be made which contravene the provisions of any outstanding evidence of indebtedness secured in whole or part by such special assessment. If the City shall have been assessed for any portion of the cost of the improvements, then it shall be considered in the same category as the owner of private lands and shall be entitled to its share of any excess.
Whenever any special assessment shall, in the opinion of the Commission, be invalid by reason of irregularity or informality in the proceedings, or for any reason whatever or if any court of competent jurisdiction shall adjudge such assessment to be illegal, the Commission 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 such reassessment and for the collection thereof shall be conducted in the same manner as provided for the original assessment, and whenever the assessment, or any part of thereof, levied upon any premises has been so set aside, if the same has been paid and not refunded, the payment so made shall be applied upon the reassessment and the reassessment shall to that extent be deemed satisfied. No judgment or decree, or any act of Commission, vacating a special assessment, shall destroy or impair the lien of the City upon the premises assessed for such amount of the assessment as may be equitably charged against the same had such charge been lawfully assessed thereupon in accordance with the procedure established or authorized in this chapter.
Should any lot or parcel of land be divided or combined after a special assessment thereon has been confirmed and before the collection thereof, the Commission may require the Assessor to apportion the uncollected amounts upon the several parts of such lot or parcel of land. The report of such reapportionment when confirmed shall be conclusive upon all parties, provided that before such confirmation, notice of hearing shall be given to all the interested parties either by personal service or by publication as above provided in case of an original assessment roll.
A. 
When any expenses shall have been incurred by the City upon or in respect to any single premises, which expense is chargeable against such premises and the owner thereof under the provisions of the Charter, this chapter or any ordinance of the City, or law of the State of Michigan, which by this chapter the Commission is authorized to charge and collect as a single lot special assessment against the lot, parcel of land or premises, which is not of that class required to be prorated among the several lots and parcels of land in a special assessment district, an account of the labor, material and service for which such expense was incurred, with a description of the premises upon or in respect to which the expense was incurred, and the name of the owner, if known, shall be reported to the Treasurer, who shall immediately charge and bill the owner, if known. The Treasurer, at the end of each quarter, shall report to the Commission all sums so owing to the City and which have not been paid within 30 days after the mailing of the bill therefor. The Commission shall, at such times as it may deem advisable, direct the Assessor to prepare a special assessment roll covering all such charges reported to it, together with a penalty of 10%. Such roll shall be filed with the Clerk, who shall present the same to the Commission. The preceding sections of this chapter with reference to pro rata special assessments and the proceedings necessary to be had before making the improvement shall not apply to single-lot assessments contemplated in this section.
B. 
The Commission shall review such single-lot special assessment roll and set a time and place to hear objections to said roll and to meet for the purposes of adopting said roll. Such notice to be sent to the property owners affected by first-class mail no sooner than 10 days prior to date of meeting. After hearing any objections, the Commission may adopt such single-lot special assessment roll by resolution. The resolution shall require all of the several amounts so reported and determined and the several lots or premises chargeable therewith respectively to be reported by the City Clerk to the Treasurer, who shall spread such amounts against the real property chargeable therewith on the next tax roll for the collection of general City taxes, and shall thereafter be collected and returned in the same manner as general City taxes. Such single-lot special assessments and all charges thereon shall, from the date of adoption of the roll, be and remain a lien upon the property assessed, of the same character and effect as a lien created by general law for state and county taxes, until paid. The resolution referred to in this section shall be treated as the confirmation of a single-lot special assessment.
When any lot, building or structure, because of accumulation of solid waste, the uncontrolled growing of weeds, age or dilapidation, construction or maintenance of any sidewalk, or because of any other condition or happening, becomes a public hazard or nuisance which is detrimental to the health or safety of the inhabitants of the City or of those residing or habitually going near such lot, building or structure, the Commission may order such hazard or nuisance abated and the cost of such abatement assessed against the lot, premises or description of real property upon which such hazard or nuisance was located as a single lot assessment.
Except as otherwise provided by law or the Charter of the City, moneys raised by special assessment for any public improvement shall be segregated in a special fund or account and shall be accounted for according to generally accepted accounting principles and may be used only to pay for the costs of the improvement for which the assessment was levied and expenses incidental thereto or to repay any money borrowed thereafter. (State law references: Funds for public improvements or buildings, MCLA § 141.261)
The City Commission may combine several districts into one project for the purpose of effecting a savings in the costs, provided that for each district, there shall be established separate funds and accounts to cover the cost of the same and shall be accounted for according to generally accepted accounting principles.
The City Commission may provide for the deferred payment of special assessments from persons who, in the opinion of the City Commission and the City Assessor, by reason of poverty, are unable to contribute towards the costs thereof. In all cases, as a condition to granting of such deferred payment, the City may take from the owner a trust deed or assignment of the property so assessed, in lieu of the payment of such assessments in cash. Such trust deed shall not deprive the owner of such property of full right to use and occupy such property so long as he shall live and shall contain a clause to the effect that such deed shall cease to be effective upon the payment of the assessments which have accrued and become payable upon the property. This shall be in addition to and not in conflict with the deferral authorized for senior citizens by PA 225 of 1976 (MCLA § 211.761 et seq.), as amended.
No suit or action of any kind shall be instituted or maintained for the purpose of contesting or enjoining the collection of any special assessment:
A. 
Unless within 30 days after the confirmation of the special assessment roll written notice is given to the City Commission of intention to file such suit or action stating the grounds on which it is claimed such assessment is illegal; and
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
B. 
Unless such suit or action shall be commenced within 60 days after confirmation of the roll.
All real property, including such as is exempt from taxation by law, shall be liable for the cost of local improvements assessed in accordance with this chapter, unless specifically exempted from special assessments by law.
When the sections of this chapter may prove to be insufficient to carry into full effect the making of any improvement or the special assessment therefor, the City Commission shall provide any additional steps or procedure required to effect the improvement by special assessment in the resolution declaring the determination of the City Commission to make such improvement in the first instance.