The Four Lakes Special Assessment District (SAD) is an established geographic boundary of waterfront properties along or near the four lakes and “backlot” properties with dedicated (private easement) access. Properties within the SAD share financial responsibility to acquire, repair, improve, operate and maintain the dams to be compliant with State of Michigan dam safety standards.
Estimated assessments
Property owners will tentatively receive a $100-$200 annual assessment for the first 2-3 years starting at the end of 2021. This will be a special assessment for operations costs. This will be followed by an annual assessment of $100-$150 for operations, and a special assessment for capital improvement costs (see estimated amounts below) for 40 years starting when projects and financing are finalized.
Value |
Operations Costs Assessment |
Capital Improvement Costs Assessment |
Cost |
$100-$200 for the average lakefront property owner for first 2-3 years; $100-$150/year after lakes return |
See table below. Assessments will vary by lake since each lake will pay for its own repair costs |
Assessment Start Date |
To Be Determined - likely at end of 2021 |
To be determined by project timing depending on when each lake is brought back up |
Capital Improvement Costs Assessment
Secord |
Smallwood |
Wixom |
Sanford |
|
Base Case Annual Cost (40-Year Financing) |
$339 |
$585 |
$2,110 |
$2,357 |
Best Case Annual Cost (40-Year Financing) |
$237 |
$410 |
$1,477 |
$1,650 |
Base Case Dam Repair Estimate |
$24 million |
$14 million |
$208 million |
$92 million |
Backlot parcels with private easement/dedicated access to water can be calculated as 25% of front lot estimates.
We are still working out the details of the assessment and have not yet determined the final factors or what impact they will have on the amount of assessment at this time.
We are still working out the details of the assessment and have not yet determined the final factors or what impact they will have on the amount of assessment at this time.
Four LAkes Special Assessment District faqs
What is the role of a Special Assessment District?
The Four Lakes Special Assessment District is a special public body established by the 2019 Lake Level Order by Midland County Judge Stephen Carras on behalf of both Gladwin and Midland counties in May 2019.
The Four Lakes Special Assessment District consists of lakefront properties as well as backlot properties that have access to the lakes, the boundaries of which were confirmed by the 2019 Lake Level Order after numerous public meetings, and resolutions from the Gladwin and Midland County Boards of Commissioners.
The counties have determined that all costs associated with the maintenance of the legal levels for the four lakes should be financed by special assessments to the benefitted properties within the Special Assessment District. In other words, the Four Lakes Special Assessment District is the source of funding for the maintenance of the lakes. While there can be other sources, such as government, private and public funding, and perhaps hydropower to offset assessments, the Four Lakes Assessment District is considered the primary source of funding to maintain the lakes.
The Four Lakes Special Assessment District consists of lakefront properties as well as backlot properties that have access to the lakes, the boundaries of which were confirmed by the 2019 Lake Level Order after numerous public meetings, and resolutions from the Gladwin and Midland County Boards of Commissioners.
The counties have determined that all costs associated with the maintenance of the legal levels for the four lakes should be financed by special assessments to the benefitted properties within the Special Assessment District. In other words, the Four Lakes Special Assessment District is the source of funding for the maintenance of the lakes. While there can be other sources, such as government, private and public funding, and perhaps hydropower to offset assessments, the Four Lakes Assessment District is considered the primary source of funding to maintain the lakes.
Who is in the Four Lakes Special Assessment District?
Properties that have access to the lakes through the shoreline, private roads or deeded access. The properties in the Special Assessment District – after public review, notifications and opportunity to appeal – were established in the May 2019 Court Order.
How is the authority to establish the lakes granted?
All four lakes (Sanford, Wixom, Smallwood and Secord) are “artificial lakes” created by the damming of the Tobacco and Tittabawassee rivers. The authority to “have lakes” is somewhat complicated and involves an understanding of over 100 years of historical information that led to the formation of the lakes and the relationship with the private dam owner.
In May 2019, the Midland Circuit Court entered an order (“2019 Lake Level Order”) establishing the legal levels for each of the lakes in accordance with Part 307, Inland Lake Levels, of the Natural Resources and Environmental Protection Act, 1994 Pa 451, as amended.
Part 307 is the exclusive authority for a county or counties to make policy decisions to ensure the establishment and maintenance of the level of an inland lake.
Midland and Gladwin counties have directed that all costs associated with the maintenance of the lake levels be paid by special assessments. The 2019 Lake Level Order also established and confirmed the Four Lakes Special Assessment District.
The Four Lakes Special Assessment District is a special purpose public body, and the Four Lakes Task Force is the county delegated authority, acting on behalf of the Four Lakes Special Assessment District.
In May 2019, the Midland Circuit Court entered an order (“2019 Lake Level Order”) establishing the legal levels for each of the lakes in accordance with Part 307, Inland Lake Levels, of the Natural Resources and Environmental Protection Act, 1994 Pa 451, as amended.
Part 307 is the exclusive authority for a county or counties to make policy decisions to ensure the establishment and maintenance of the level of an inland lake.
Midland and Gladwin counties have directed that all costs associated with the maintenance of the lake levels be paid by special assessments. The 2019 Lake Level Order also established and confirmed the Four Lakes Special Assessment District.
The Four Lakes Special Assessment District is a special purpose public body, and the Four Lakes Task Force is the county delegated authority, acting on behalf of the Four Lakes Special Assessment District.
What authority regulates dam safety?
With respect to dam safety, if any of the lakes produce hydropower, then FERC has the authority to require the person who holds the license to address dam safety. If there is no FERC license, the State of Michigan regulates dam safety. In either case, FLTF as the county delegated authority and acting on behalf of the Four Lakes Special Assessment District has the authority to manage the lake levels.
How will the assessment be calculated and allocated?
The methodology for the allocation of assessments was being established before the dam failures and will be revisited to look at allocating the capital costs by dam restoration/repair by lake. Most properties are single residences on a parcel with less than 300 feet of lakeshore. Properties that are not on the lake directly, “backlots,” are likely to be assessed one quarter (1/4) of the amount of the single residence on 300 ft. of the lake. There are other factors including use (resident, commercial, agriculture), headwater or shore length.
We are updating the assessment methodology following the dam failures and will communicate it at the beginning of 2021.
We are updating the assessment methodology following the dam failures and will communicate it at the beginning of 2021.
Is FLTF still using the same factors (headwater, amount of frontage, adjoining properties, etc.) to determine what each parcel's assessment will be?
Likely yes. We are still working out the details of the assessment and have not yet determined the final factors or what impact they will have on the amount of assessment at this time.
What costs are included in assessments?
Costs are categorized in two ways and will be assessed as follows: operations costs and capital improvement costs.
Operations costs pay for operations and management of the lakes during the transition to their normal levels, emergency repairs, the development of operational plans, and long-term, ongoing operations.
Capital improvement costs are fixed, one-time expenses to make the dams operable (construction and repairs). Payments in connection with capital improvements will not occur until we finalize engineering plans, obtain all permits, receive construction bids, and conduct the Special Assessment hearing. By April 2021 a refined cost and schedule will be determined by lake through the Feasibility Study.
See the tables above for more information.
Operations costs pay for operations and management of the lakes during the transition to their normal levels, emergency repairs, the development of operational plans, and long-term, ongoing operations.
Capital improvement costs are fixed, one-time expenses to make the dams operable (construction and repairs). Payments in connection with capital improvements will not occur until we finalize engineering plans, obtain all permits, receive construction bids, and conduct the Special Assessment hearing. By April 2021 a refined cost and schedule will be determined by lake through the Feasibility Study.
See the tables above for more information.
What about 2021 and beyond for the capital improvement component of the assessment?
- While the overall project costs will be refined by April of 2021, the capital component of the assessments will not be set to occur until the projects and financing are determined. Timing will be better estimated after FLTF acquires the properties. It is unlikely that this assessment would occur without a determined scheduled of when a lake would come up.
- These assessments will follow the same process as the Operations Assessment: with a new set of hearings, followed by county approval.
What about weeds?
Normally aquatic weed management is a responsibility of the Lake Improvement Boards or weed special assessment districts. FLTF will be working with these entities to determine the best path forward to manage weeds and young tree growth during this transition period.
Read about the latest guidance from EGLE on bottomland vegetation growth:
Read about the latest guidance from EGLE on bottomland vegetation growth:
How will property owners’ input be heard?
- FLTF, through a third party, will survey residents in January/February of 2021 about the assessment. We also will conduct public hearings in 2021 to get property owner input that will guide the Four Lakes Task Force and the counties in decision-making and approval of the assessment rolls. This survey will occur annually until the lake levels are back in place.
- Before any assessment by the Four Lakes Special Assessment District, a computation of costs will be prepared to detail the anticipated costs associated with the maintenance of the legal levels. This will be followed by the “Day of Review” of the assessments.
- Each property owner receiving an assessment will have the opportunity to be heard at that hearing. Following the hearing, FLTF will submit the assessment roll to the County Board of Commissioners for Gladwin and Midland counties. The County Board must then confirm the assessment roll. Property owners will have an opportunity to appeal their assessment following the confirmation of the assessment roll by the County Board.
Can we have a public vote on the Four Lakes Special Assessment District?
The short answer: No, there is no public vote in connection with the Four Lakes Special Assessment District. In accordance with Part 307, the Counties of Midland and Gladwin decided that all costs associated with the maintenance of the lake levels are to be defrayed by special assessments. To this end, and again, in accordance with Part 307, the Four Lakes Special Assessment District was legally established by Circuit Court order in May 2019. The process for making, levying and collecting special assessments will be similar to the process set forth in the Michigan Drain Code of 1956, Act 40, as amended. Each property owner will receive notice of their assessment, an opportunity to participate in a public “Day of Review” and object, and have a right to appeal the final assessment following the approval of the assessment rolls by each of the county board of commissioners.
That said, we understand that this is a significant decision for the property owners on the lakes and the counites. In early 2021, the FLTF (through a third party) will be undertaking a survey of residents about the potential assessments and the desire to restore their lakes. The survey and public meetings will take place prior to the formal special assessment process described above. In addition, we will also hold public meetings to obtain property owner input. It is recognized that restoring the lakes has to be affordable for the community and this will be a major factor in the decision on how we proceed.
That said, we understand that this is a significant decision for the property owners on the lakes and the counites. In early 2021, the FLTF (through a third party) will be undertaking a survey of residents about the potential assessments and the desire to restore their lakes. The survey and public meetings will take place prior to the formal special assessment process described above. In addition, we will also hold public meetings to obtain property owner input. It is recognized that restoring the lakes has to be affordable for the community and this will be a major factor in the decision on how we proceed.
How do I appeal the assessment?
In accordance with Part 307, the Counties of Midland and Gladwin decided that all costs associated with the maintenance of the lake levels are to be defrayed by special assessments. To this end, and again, in accordance with Part 307, the Four Lakes Special Assessment District was legally established by Circuit Court order in May 2019. The process for making, levying and collecting special assessments will be similar to the process set forth in the Michigan Drain Code of 1956, Act 40, as amended. Each property owner will receive notice of their assessment, an opportunity to participate in a public “Day of Review” and object, and have a right to appeal the final assessment following the approval of the assessment rolls by each of the county board of commissioners.
You have a window to appeal the assessment in steps 4 and 8.
You have a window to appeal the assessment in steps 4 and 8.
- Delegated Authority - Prepares Computation of Cost for purposes of determining costs to be spread, MCL 324.30712. Contingency expenses cannot be more than 15% of the project cost.
- Delegated Authority - Prepares Assessment Roll. MCL 324.30714
- Delegated Authority – Prepares, publishes and mails, Notice of Day of Review of the Assessment Roll. MCL 324.30714(2)(a) and (2)(b)
- Delegated Authority - Holds “Day of Review” to receive and hear objections to the Assessment Roll. Necessary for someone to appeal their assessment. MCL 324.30714(3).
- This “day of review may take more than 1 day; there is a period where you as an individual sit and review and discuss (appeal) your position on the benefit the lake brings to the property.
- Delegated Authority – If necessary, revise Assessment Roll (e.g. if someone demonstrates that they do not receive a benefit).
- Delegated Authority – Confirms Assessment Roll and transmits same to County Board of Commissioners.
- County Board of Commissioners – by resolution approves Assessment Roll.
- Assessment Roll with assessments is final and conclusive unless appealed in a court within 15 days after County Board Approval. MCL 324.30714(4)
WHAT HAPPENS TO THE PROPERTY ASSESSMENT IF I SELL MY PROPERTY?
Generally, payment of a special assessment is between the seller and buyer of the property. A seller and buyer may choose to structure the purchase agreement so the buyer assumes the special assessments. At times, special assessments are paid in full at the time of sale (meaning the full amount is deducted from the purchase price).
Note: This information has been adjusted from prior postings.
Note: This information has been adjusted from prior postings.
QUICK FACTS
|
Established by order of Midland Circuit Court Judge Stephen Carras on May 28, 2019
|
|
Assessment will fund operation and implementation costs
|
|
Assessments vary by lake and will be determined based on acquisition and upgrade costs for the respective dam
|
|
We are in the process of developing a new assessment methodology
|
|
Special Assessment District will tentatively go into effect in June 2022
|
FINANCIAL Help
For those who feel they are unable to afford an assessment, you may apply to have the State cover the assessment if it is $300 or more. This is an "advance" and carries interest. In addition, a lien is filed against the property and the assessment will need to be paid back by either the estate or as part of the property sale in the future.
Qualifications:
Qualifications:
- Be 65 years of age or older
- Have owned and occupied the homestead for five years or more
- Maximum household income of less than $24,305
