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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 9, 2026 Title: Equalization and Assessing Contract
Submitted by: Kenneth Grant, Finance Director Department: Finance
Brief Summary:
Contract with the County of Muskegon to provide Equalization and Assessing Services from July 1,
2026 to June 30, 2031.
Detailed Summary & Background:
The purpose of this Agreement is to provide for a property assessment administration program to be
administered by the County Equalization Director, or designated representative, which will list,
appraise, and maintain a complete set of records for all real and personal property, subject to ad
valorem taxation, specific taxes, and in-lieU-of tax agreements within the Corporate limits of the City
of Muskegon. The base annual fee of $470,000 starting July 2026 will be subject to a 3% increase
effective July 1, 2027, and annually on this date for every year thereafter. The County Equalization
Department will provide a staff member to be on site at City Hall one full working day per week
beginning September 8, 2026.
Goal/Action ltem:
2027 Goal 4: Financial Infrastructure
Is this a repeat item?:
Explain what change has been made fo justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Starting July 2026 the base cost is $470,000 that is Yes No N/A
subject to a 3% increase annually until June 30,
2031;
Fund(s) or Accouni(s): Budget Amendment Needed:
101-267 Yes No N/A
Recommended Motion:
Staff recommends that the Commission approve the agreement with the County of Muskegon to
provide Equalization and Assessing Services for the City of Muskegon, effective July 1, 2026, through
June 30, 2031.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
AGREEMENT BETWEEN THE CITY OF MUSKEGON
AND
MUSKEGON COUNTY BOARD OF COMMISSIONERS
THIS AGREEMENT, entered into as of the Ist day of July 2026, between the City of Muskegon,
a municipal corporation, by its City Commission, hereinafter referred to as “The Municipality”,
and the County of Muskegon, by its Board of Commissioners, hereinafter referred to as “The
County”, is as follows:
PURPOSE
The purpose of this Agreement is to provide for a property assessment administration program to
be administered by the County Equalization Director, or designated representative, which will list,
appraise, and maintain a complete set of records for all real and personal property, subject to ad
valorem taxation, specific taxes, and in-lieu-of tax agreements within the Corporate limits of The
Municipality pursuant to Public Act No. 160 of 1972.
TERM AND TERMINATION
This agreement shall commence July 1, 2026, and terminate June 30, 2031, provided that either
party may terminate the Agreement on June 30 of each year upon ninety (90) days prior written
notice. The notice shall be sent by certified mail to the County Equalization Director if terminated
by The Municipality. The notice shall be sent by certified mail to the City Manager if terminated
by the County.
I. The County agrees to perform the following services and provide the materials set forth
herein:
A. Scope of Service - To classify and appraise, according to the constitution and laws
of the State of Michigan, each parcel of real property which lies within the confines
of The Municipality, and to process all assessable personal property that is in such
Municipality, and use the methods prescribed by the Michigan State Tax
Commission. The Equalization Department will provide an assessment roll that will
equal the tentative State Equalized Values for each classification of property. The
final factor will be determined by the action of The Municipality’s Board of Review
and the process of state equalization as determined by the State Tax Commission.
B. Qualified Staff - All County employees engaged in the performance of this
Agreement shall be professional in manner and appearance and be trained in property
appraisal techniques. The assessor shall be certified by the State Tax Commission, as
required for The Municipality’s size and State Equalized Value.
C. Equipment and Supplies - The County will provide all equipment and supplies
needed for the routine performance of its duties without additional expenses, except
as otherwise set forth herein.
. Maps and Records - The Municipality shall provide current land use maps, zoning
maps, street/centerline maps, plats, topographical maps, sewer and water maps, and
shall make available any records or data which may be of use in making the appraisal,
without cost to the County. The County has implemented a GIS system in which
mapping data is maintained. The GIS system is addressed in sub-point “M” of this
agreement.
. Appraisal Manuals/Schedules - The current Michigan State Tax Commission
Assessor’s Manuals shall be the cost schedules used in the appraisal of all properties.
All cost schedules shall be indexed to reflect current costs as of Tax Day.
. Record Cards - The County will maintain the master file at a specified location. The
master file shall become the property of The Municipality when delivered.
. Public Relations - Both parties recognize that good public relations are vital to the
success of the assessment administration program. During the term of this
Agreement, County employees shall endeavor to promote understanding and
amicable relations with all members of the public. County staff will be assigned by
the Equalization Director to report to the designated Municipal Building to conduct
their duties, interact with Municipal staff, attend meetings and promote community
relations. An Equalization Department staff member will be on site at the City Hall
one full working day per week beginning September 8, 2026. The Municipality will
provide adequate office area and operational infrastructure, such as
telecommunication, data communication, utilities, networking capabilities and
electronic storage capacity to adequately support required staff activities and
necessary ancillary functions. The accommodations shall be safe, modern, and reflect
a professional function.
. Property Owner Notification and Official Statements - It shall be the
responsibility of the County to notify all property owners annually of assessed and
taxable values, as provided by law, whether values increase or decrease, as well as
distribute personal property statements and other official forms.
Assessment Roll - The County shall prepare the assessment roll and certify the same
for The Municipality in a timely manner.
Board of Review - County staff will advise and assist The Municipality’s Board of
Review in preparing for, conducting, and implementing any changes resulting from
the required meetings of the Board.
. Appeals - The County Equalization Director, or designated representative, shall
represent The Municipality in all property assessment appeals and in proceedings
before the Tax Tribunal concerning properties under this Agreement. The
Municipality shall designate and provide the legal services for such appeals or
proceedings; however, costs or expenses which may be incurred by the County in
employing additional counsel, expert appraisers, or performing extraordinary specific
appraisal work in connection with such appeals, proceedings, or other functions shall
be paid by The Municipality provided that the Equalization Director seeks and
obtains approval from The Municipality prior to incurring such costs or expenses.
Additionally, should either party terminate this agreement, the County, or designated
representative, shall represent The Municipality in all property assessment appeals
and in proceedings filed during the existence of this agreement. The fee shall be
$100.00 per hour for preparation, appearance, and travel after termination of the
agreement.
L. Computerized Appraisals and Information Technology — The County will
provide staff, equipment, and the BS&A Assessing software to maintain electronic
property records using a computer assisted mass appraisal system. Assessment
administration, including digital photography and sketching, as well as general
business application software shall be prescribed by the County. All property
information shall adhere to the requirements of the County Wide Area Network and
its specifications. The records will be utilized for annual valuation updates. The
County may request the assistance of designated staff of The Municipality to
determine proper neighborhoods for market value determinations. The County will
ensure that the assessment records reflect the property’s true cash value, assessed
valuation, and taxable valuation to be utilized for any property tax calculations in
conformance with applicable General Property Tax Law requirements. The computer
assisted mass appraisal system and its attributes shall become the property of The
Municipality upon termination of this agreement.
Additionally, the County and The Municipality shall participate in an electronic
building permit system that will transfer such data to the computer aided assessment
administration system without modification or hesitation. The system and its
attributes shall be determined by the County.
M. Geographical Information Systems — The County and The Municipality may
implement a geographical information system. An independent formal mutual
agreement will govern this function.
N. Special Assessments- Special assessment benefit analysis, roll preparation,
processing, and related reports will be provided by the County when formally
requested. The fee shall be $100.00 per hour.
O. Records Maintenance and Access — The County agrees to maintain records with
the most current information the County has available.
1. All changes in property ownership will be recorded in the assessment records
within 30 days of being filed with the Muskegon County Register of Deeds unless
incomplete property documentation prevents timely recording. In these cases, the
Equalization Department will strive to get complete, accurate ownership
information recorded as quickly as practical.
2. City staff will be afforded full access to assessment records (including
photographs).
P. Pursuant to Public Act 453 of 1976, neither party shall discriminate against an
employee or applicant for employment with respect to hire, tenure, terms, conditions
or privileges of employment, or a matter directly or indirectly related to employment,
because of race, color, religion, national origin, age, sex, weight, or marital status.
Breach of this covenant may be regarded as a material breach of the contract.
II. The County will perform all the above services for The Municipality, subject to costs and
expenses set forth, under the terms-and conditions below:
A. Annual Fees - For each year of this agreement the annual fee shall be calculated
in the following manner: The initial period shall be from July 1, 2026, to June 30,
2027, and the fee shall be $470,000. The base Annual Fee of $470,000 shall be
subject to a 3 percent (3%) increase effective July 1, 2027, and annually on this
date for every year thereafter.
This annual fee does not include the cost associated with a full re-inspection. A re-
inspection fee can be negotiated between the County Equalization Director and if
staff field reviews determine this to be necessary. Additionally, this re-inspection
may be required by the State following their Assessment Roll Audit conducted
every five years.
B. Payments - The Municipality shall remit the annual fee in equal quarterly
payments commencing July 1 of each year of this agreement.
C. Relationship of the Parties — The parties acknowledge that the agreement
between the County and The Municipality is one of an independent contractor.
Neither of the parties should represent that an employment relationship is created
or exists with regard to the employees of the other. This independent contractor
relationship shall be given its full scope and intent including without limitation as
it pertains to liability, wages, benefits, and taxation.
Ill. Miscellaneous
A. Section Headings — The headings of the sections shall be solely for convenience
of reference and shall not affect the meaning, construction, or effect hereof.
B. Severability — If any one or more of the provisions contained herein shall for any
reason be held to be invalid, illegal, or unenforceable in any respect, then such
provision or provisions shall be deemed severable from the remaining provisions
hereof, and such invalidity, illegality, or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if such invalid, illegal,
or unenforceable provision had never been contained herein.
C. Entire Agreement and Amendment — In conjunction with matters considered
herein, this Agreement contains the entire understanding and agreement of the
parties and there have been no promises, representations, agreements, warranties,
or undertakings by any of the parties, either oral or written, of any character or
nature hereafter binding except as set forth herein. This Agreement may be altered,
amended, or modified only by an instrument in writing, executed by the parties to
this Agreement, and by no other means. Each party waives their future right to
claim, contest, or assert that this Agreement was modified, canceled, superseded,
or changed by any oral agreements, course of conduct, waiver, or estoppel.
D. Successors and Assigns — All representations, covenants and warranties set forth
in this Agreement by or on behalf of, or for the benefit of any or all of the parties
hereto, shall be binding upon and inure to the benefit of such party, it successors
and assigns.
E. Terms and Conditions — The terms and conditions used in this Agreement shall
be given their common and ordinary definition and will not be construed against
either party.
F. Execution of Counterparts — This Agreement may be executed in any number of
counterparts and each such counterparts shall for all purposes be deemed to be an
original; and all such counterparts, or as many of them as the parties shall preserve
undestroyed, shall together constitute one and the same instrument.
ACKNOWLEDGEMENTS
City of Muskegon: Bre Mmm Qn
Ken Johng6n
Its: Mayor
By: Qa dess.deeanss!1s
. Ann Marie Meisch
Its: City Clerk
County of Muskegon: By: jy MME.
CEharles Nash
_
Its: Chairman Board of Commissioners
re)
By:
Kargn D. Buie
Its: County Clerk
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