Refunds in Pink and Blue Sections

Construction in the Pink and Blue sections is complete, and the Road Commission closed out the projects significantly under budget.  At their meeting on March 9, 2026, the Township Board of Trustees approved refunds for these sections; the refunds will reduce the ultimate the per-parcel assessments in these sections as shown below:                                  

                            Original           Refund         Revised

Pink                        $48,162            $11,487        $36,675

Blue                        $42,270             $8,971        $33,299

Where the assessment has already been paid in full, the Township will issue a check for the refund to the current property owner.  Where the assessment is being paid through the winter property taxes over the 15-year life of the SAD, the refund will be applied to fully satisfy the 2026 and 2027 payments, and partially offset the 2028 payment.  (Note, for example, that the 2026 payment will be billed in December 2026 as part of the winter property taxes.)  Payment amounts defined in the original payment schedule will continue from 2029 until the final payment in 2038. 

Why are the refunds so substantial?

The Road Commission engineers estimating the costs of our road projects had a tough job, dealing with significant uncertainties about what they would find when they started digging to replace our 60-year-old roads.  The engineers were conservative in estimating the work needed to complete the projects, given the uncertainties.  In the end, actual construction work came in lower than the conservative estimates, and the projects were completed at less than the budget.  Further, as is common practice, the project budgets included contingency reserves for unexpected circumstances.  Contingency reserves of 10% were provided on both the Pink and Blue projects.  The reserves were not used on either project, and represent close to half of the refunded amounts.

Why are cash refunds being paid to the current property owner (versus the person who paid the assessment in full)?

Our SADs are governed by Public Act 188 in Michigan law.  PA 188 requires that refunds from SADs are paid to the property owner at the time of the refund.  Thus, the Township is required by law to make any refund payment to the current property owner, regardless of when and by whom the full assessment amount was paid. 

What happens when a house is sold, and there is a later refund on the SAD assessment?

By law, SAD refunds are paid to the property owner of record when the refund is made. If the house has changed hands since the full payment was made, the new property owner will receive the refund.  Residents in the Gold, Yellow and Green sections contemplating selling their homes will want to take this into consideration, particularly if deciding whether to pay the assessment in full before any refund is determined.

How will the refunds impact escrows on my mortgage?

2026, 2027 and 2028 winter property tax bills will be lower than they otherwise would be as the refunds are offsetting the road assessment payments (partial offset in 2028).  If your monthly mortgage payment includes escrows for property taxes, you may want to have your mortgage company adjust the escrows for the lower taxes in these years.  Escrows would need to be adjusted again in 2029, as winter property taxes reflect the full road assessment payments.

What about refunds in the Gold and Yellow sections?

Restoration work, pipe-lining and punch list items still need to be finished in the Gold and Yellow sections. The projects should be completed and closed out later in 2026;  the Township will determine and announce any refunds after the projects are closed out. It would be premature to make any prediction about refunds at this point. 

Questions on the refunds can be directed to the Township Treasurer’s office at 248-433-7705.