Title
An Ordinance to Amend Sections 1:271 through 1:275 and Sections 1:277 through 1:278 of Chapter 12, to Add a New Section 1:279 to Chapter 12 of Title I, to Amend Sections 1:281, 1:284, 1:286, 1:292 and 1:295 and to Delete Section 1:283 of Chapter 13 of Title I, and to Amend Section 5:148 of Chapter 58 of Title V of the Code of the City of Ann Arbor (Financing Local Public Improvements, Special Assessments and Territorial Annexations) (Ordinance No. ORD-07-45)
Memorandum
This ordinance amends all of the sections in Chapter 12 except Section 1:276 and adds a new Section 1:279. It also amends certain sections in Chapters 13 and one section in Chapter 58 to conform to and support the amendments to Chapter 12.
In December 2003, certain sections of Chapter 12 were amended to establish the use of fixed rate charges for water main and sanitary sewer improvement charges for residential properties connecting to one or both of these utilities constructed after January 20, 2004. The purpose of this change was to recover the actual cost of these improvements, including their depreciation, with properties paying the current cost of the improvement at the time of the connection through the annual adjustment of the improvement charge fixed rate charge.
It has since been realized that there are other connections to the city’s water and sanitary sewer systems where the city is not made whole for its capital, operating and depreciation costs under the current provisions of Chapter 12. The proposed ordinance changes to Chapter 12 include and accomplish the following:
· Provides for individual vacant residential properties to pay the improvement charge fixed charge at the time of its initial connection to the water and/or sanitary systems, with an adjustment to the amount owed based on the decade the main was constructed, recognizing that the property paid an initial share of the capital construction cost, but has not yet contributed to the operation and depreciation of t...
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