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HomeMy WebLinkAboutResolutions - 1973.03.01 - 10407March 1, 1973 March 1, 1973 RESOLUTION NO 6236 RE: ESTABLISHMENT OF DELINQUENT TAX REVOLVING FUND HY: FINANCE COMNITTEE - Mr. Houghton TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, this Board of COmmissioners is authorized to create an Oakland County Delinquent Tax Revolving Fund, pursuant to Section 87b of Act NO. 206 of the Public Acts of 1893, as amended; and WHEREAS, the purpose of this Fund is to allow the County Treasurer to pay from the Fund any or all delinquent taxes which are due and payable to any school district, intermediate school district, community college district, city, township, special assessment or drain district or other political unit Or county agency for which delinquent tax payments are due on settlement day with the county, city or township treasurer and he has heretofore been directed to do so by this Board of Commissioners; and WHEREAS it is hereby determined that it is necessary that this County create the Oakland County Delinquent Tax Revolving Fund; • and NOW, THEREFORE, BE IT RESOLVE p BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, as follows: l. There is hereby created the "Oakland County Delinquent Revolving Tax Fund" which fund shall consist of separate segregated funds (unless otherwise ordered by specific Resolution of this Board of Commissioners) for delinquent taxes due on account of specific tax years and into which funds all such delinquent taxes, except taxes on personal property due and payable to a taxing unit which receives its delinquent taxes from the fund are due and payable to Oakland County. 2. As soon as the segregated fund for any tax year is suf- ficiently funded, the County Treasurer shall, to the extent permitted by available funds make payment of any Or all delinquent taxes for such year to any school district, intermediate school district, community college district, city, township, special assessment district or any other political unit for which delinquent tax payments are due on settlement day with the City or Township treasurers, provided the -2- recipient has first duly agreed to be bound elie terms of a "Delinquent Tax Pre-Payment Agreoment",:the form of which is attached hereto as "Exhibit A" which Agreement is hweeby approved for execution on behalf of Oakland County by the County 72reasuref, 3. The County Treasurer shall make such payments directly to single school districts when such a tingle sehooZ district exists within a political unit. 4. The interest charges and Collection rates established under Act 206 of the Public Acts of 1893, as amended for delinquent taxes shall, once such fund has been established be payable to the county and credited to the Oakland County Delinquent Tax Revolving Fund for the year in which such delinquent tax was due. 5. The funds on deposit in the Oakland County Delinquent Tax Revolving Fund shall be deposited in such Bank account or accounts or invested in such investments as the County Treasurer is authorized by law to 'wake for general funds of the County provided that the segregeeted funds for the respective years shall be accounted for separately and shall be designated as fellows: Tax Year Date Became Delinquent Fund No 1971 and March 1, 1972 and March 4000 all prior years 1 of all prior years 1972 March 1, 1973 46190 Separate funds for future tax years shall be numbered from 46191 upwards. 6. Any surplus in the Oakland County Delinquent Tax Revolving Fund including any collection fees which are not pledged for repayment of borrowings shall be transferred to the County General Fund as directed by the Board of Commissieners. 7. Wherever payments are made pursuant to paragraph 2 hereof such payments shall be made as follows: Where sufficient funds exist, 100% of the delinquent taxes for the tax year for which such funds are available (b) Where sufficient funds do not exist for payment of 100% of the delinquent taxes for such tax year, payments shall be made on an equal basis to all political units of each unit's pro-rata share of such delinquent taxes (c) No political unit shall receive any pay- ments from the Oakland County Delinquent Tax Revolving Fund unless it has duly authorized, executed, delivered and is fully complying with a Delinquent Tax Pre-FayMent Agreement in the form attached hereto as Exhibit A. The Finance Committee, by Mr. Fred D. Houghten, Chairman, move3the adoption of the foregoing resolution. EXHIBIT A DELINQUENT TAX PRE-PAYMENT AGREEMENT THIS AGREEMENT, made and entered into on the day of , 1973, between the County of Oakland, State of Michigan (hereinafter called the "County") and , Oakland County, Michigan (hereinafter called the "Municipality") WITNESSETH: WHEREAS, on March 1, 1973, the Board of Commissioners of Oakland County adopted a resolution establishing an "Oakland County Delinquent Tax Revolving Fund", pursuant to Section 87b of Act No. 206 of the Public Acts of 1893, as amended; and WHEREAS, the purpose of this Fund is to allow the County Treasurer to pay from the Fund any or all delinquent taxes which are due and payable to any school district,:intermediate school district, community college district, city, township, special assessment or drain district or other political unit or county agency for which delinquent tax payments are due on settlement day with the county, city or township treasurer; and WHEREAS, the Municipality wishes to receive its 1972 Delinquent Taxes (which became delinquent on March 1, 1973) immediately without awaiting the collection thereof by the County; and WHEREAS, the County and the Municipality both recognize that 100% of the Municipality's 1972 Delinquent Taxes may not ultimately be received by the County; and WHEREAS, it is impossible for the County and the Municipality to presently estimate the amount which the County will not be able to collect from the Municipality's 1972 Delinquent Taxes. NOW THEREFORE, in consideration of the County's agreement to immediately pay to the Municipality an amount equal to all of the Municipality's 1972 Delinquent Taxes it is agreed as follows 1. The Municipality hereby authorizes the county to with- hold from future years' delinquent taxes to be collected for the Municipality an amount equal to the Municipality's 1972 Delinquent Taxes which the County has determined are not collectable either because of a reduction in assessment by the State Tax Commission or for any other reason, together with interest on such amount from March 1, 1973 at the rate of 1/2% per Month until such withholding occurs. The withholding shall occur on the March let following the date of such determination by the County. 2. The Municipality agrees that in the event the County in the future pays to the Municipality the amount of any other delinquent taxes of the Municipality for any other years the County shall also be entitled to withhold from future years' delinquent taxes to be collected for the Municipality an amount equal to the Municipality's delinquent taxes for the year for which the County made pre-payment which the County has determined are not collectable either because of a reduction in assessment by the State Tax Commission or for any other reason together with interest on such amount from the March 1st on which -2- the delinquent tax prepaid became delinquent at the rate of 1/2% per month until such withholding occurs. The withholding shall occur on the March 1st following the date of such determination by the County. 3. Whenever the County makes a determination that some of the aforesaid delinquent taxes are uncollectable, it shall forward a copy of such determination to the Municipality. 4. Pursuant to Act 206 of the Public Acts of 1893, as amended, the County shall be entitled to all interest collection charges and penalties due on and after the March 1st delinquency date for the Municipality's Delinquent Taxes in any year (including the 1972 Delinquent Taxes) for which year the County has prepaid or does prepay such taxes to the Municipality pursuant to said Act and this Agreement. . This Agreement shall remain in full force and effect until cancelled by mutual agreement of both parties. COUNTY OF OAKLAND ByH County Treasurer Mame of Municipality) By It s Moved by Ighten supported by Vogt the rt Iution be adopted. Discussion followed. Ayes: Nowak, Olson, Patnales, Perinoff, Pernick, Quinn, Richardson, Vogt, Walker, Wilcox, Berman, Brotherton, Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Moffitt, Montante. (27) Nays: None. (0) Absent: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN ) ) ss. COUNTY OF OAKLAND ) I, the undersigned, the duly qualified and acting Clerk of the Board of Commissioners of the County of Oakland, Michigan, do hereby certify that the foregoing is a true and complete copy of proceedings taken at a special meeting of the Board of Commissioners of said County held on the 1st day of March, 1973, insofar as the same relate to the establishment of the Oakland County Delinquent Tax Revolving Fund, the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official signature this 1st day of March, A.D 1973. Lynn D. A l ien, Ere-±1.--of oalTaTia—county