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HomeMy WebLinkAboutResolutions - 1973.03.01 - 10408March 1, 1973 RESOLUTION NO. 6237 RE: AUTHORIZATION TO BORROW AGAINST ANTICIPATED DELINQUENT TAXES BY: FINANCE COMMITTER - Mr. Houghten TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, on March 1, 1973, this Board of Commissioners 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 it appears desirable and to borrow to fund part of said Fund; and WHEREAS, the purposeof 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, Hintermediate school district, community college district, city, township, special assessment or drain district or other political unit Or county agency for which delinquent tax payments ffire due on settlement day with the county, city or township treasurer and he had heretofore been directed to do so by this Board of Commissioners; and WHEREAS, it is hereby determined that it is necessary that this County borrow a sum not to exceed Fourteen Million Two Hundred Fifty Thousand Dollars ($14,250,000) and issue its notes in anticipation of the collection of the 1972 delinquent taxes which became delinquent on March 1, 1973, and deposit the proceeds thereof in the aforesaid Delinquent Tax Revolving Fund; and WHEREAS, such borrowing is authorized by Chapter 4 of Act No 202 of the Public Acts of 1943, as amended; and WHEREAS, the total amount of unpaid 1972 delinquent taxes outstanding at the time of passage of this resolution is estimated to be in excess of $14,250,000, exclusive of interest, fees and penalties. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, as follows 1. The County shall borrow FOurteen Million Two Hundred Fifty Thousand Dollars ($14,250,000) or such part thereof as will represent the exact amount of delinquent taxes outstanding on March 1, 1973 exclusive of interest, fees and penalties and as the Munic ..tpal Finance Commission may authorize, and is sue its "Delinquent Tax Revolving -2- Fund Notes, Series 1973", in anticipation of the collection of the 1972 delinquent taxes outstanding on March 1, 1973 as specified above, the proceeds of which notes shall be placed in and used as the whole or part of the Oakland County Delinquent Tax Revolving Fund No. 46190. 2. The said notes shall bear interest which is not to exceed six per cent (6%) per annum, shall be dated April 1, 1973, and shall be due and payable as follows: $7.,125,000 on or before : Mall 1 , 1974, $4,275,000 on or before May 1, 1975 and $2,850,000 on or before May 1, 1976 and all notes shall be subject to prepayment upon 90 days notice as hereinafter provided. 3. All collections of the aforesaid 1972 delinquent taxes outstanding on March 1, 1973, together with all interest thereon (but excluding fees and penalties), are hereby pledged to the prompt payment of the principal of and interest on the aforesaid notes; the proceeds of the 1972 delinquent taxes so, pledged shall be used for no other purpose until the aforesaid notes are paid in full including interest and all such delinquent taxes se pledged together with all interest thereon (but excluding fees and penalties) shall be deposited into and accounted for separately in theOakland County Delinquent Tax Revolving Fund No. 46190. 4. The aforesaid notes shall be full faith and credit obligations of Oakland County and if the proceeds of the 1972 delinquent taxes pledged and other monies in the Oakland County Delinquent Tax Revolving Fund are not sufficient to pay the principal and interest of the notes when due, the county shall levy a tax with- out limitation as to rate or amounteon all taxable property in the County to pay them and may thereafter reimburse itself from delinquent taxes collected. -3- 5. Pursuant to the resolution of this Board of Commissioners adopted March 1, 1973, there is hereby established Oakland County Tax Revolving Fund No 46190 effective as of March 1, 1973, into which Fund the County Treasurer is hereby directed to place on his books and records all payments received on or after March 1, 1973, on account of the 1972 delinquent taxes as returned to him by any tax collector in the county on or after March 1, 1973, which Fund is presently estimated to be in an aggregate amount in excess of $14,250,000, including the proceeds of the borrowing hereby authorized i_ and from which Fund the County Treasurer shall repay the.borrowing using the receipts of the delinquent taxes including interest outstanding on the date of said borrowing and shall pay from the proceeds of the borrowing, the full amount of 1972 delinquent taxes delivered to him by any tax collector in the county and outstandingand unpaid on or after March 1, 1973. Collection fees and penalties received after March 1, 1973, by the County Treasurer in connection with the payment to him of 1972 delinquent taxes shall be separately recorded and shall be transferred as provided in the March 1, 1973 Resolution of the Oakland County Board of Commissioners establishing the Oakland County Delinquent Tax Revol-, ing Fund. Such fees and penalties shall not, be deposited in said Fund No 46190. 6. After a sufficient sum has been set aside for the purpose of paying the aforesaid notes, any further collection of the aforesaid 1972 delinquent taxes may be used to pay any or all delin- quent taxes which are due and payable to any school district, inter- mediate school district, community college district, city, township, special assessment district or any other political unit for which delinquent tax payments other than for the year 1972:are due on settlement day with the county, city or township treasurers. -4- 7. The aforesaid notes of each maturity shall be in such denominations as the purchaser or purchasers shall request and shall be paid in lawful money of the United States of America at such bank or trust company in the State of Michigan. as shall be designated by the original purchaser or purchasers and shall be substantially in the form attached hereto and hereby approved and adopted. 8. The notes shall be subject to prepayment in whole or in part upon 90 days' notice served by registered mail upon the known holder or holders thereof or published in a newspaper or publication circulated in the State of Michigan which carries as a part of its regular service notices of the sale of municipal bonds and notes. 9. The Chairman of the Oakland County Board of Commissioners and the Clerk of the County of Oakland are hereby authorized and directed to execute said notes for and on behalf of the County of Oakland, and upon the execution of said notes, the same shall be delivered to the Treasurer of the County. of Oakland, who is hereby authorized and directed to deliver said notes to the purchaser there- of upon the receipt of the purchase price therefor, which delivery may be made in the discretion of the Treasurer all at one time or in parts, at various times provided the notes with the earliest maturities shall be all delivered prior to any notes with later maturities and provided further that all deliveries shall be completed by August 15, 1973. 10. The Oakland County Treasurer be and he is hereby authorized to make application to the Municipal Finance Commission for and on behalf of the county for an order permitting this County to borrow not to exceed $14,250,000 and issue its Oakland County Delin- -5- quent Tax Revolving Fund. Notes, Series 1973, therefor as aforesaid and the County Treasurer is further authorized to negotiate the sale of said.notes privately. 11. The aforesaid notes shall delivered with the unqualified opinion of Dickinson,- Wright, McKean & Cudlip, Attorneys, Detroit, Michigan, approving the legality of the notes and the cost of said legal opinion, and the printing ofthe notes will be at the expense of the County of Oakland, and provided that the notes will be delivered at the place agreed upon withLthe purchaser. 12. Notwithstanding any otherlprovision of this resolution or other resolution adopted heretofore, the County hereby covenants With the purchaser (Within the meaning Of Section 103-13 of the Temporary Regulation prescribed by the Commissioner of Internal Revenue on June 1, 1972) of the Delinquent Tax Revolving Fund Notes Series 1973, that the County will make no use of the proceeds,of said notes, which, if such use had been reasonably expected on the date of issue of said notes, would have caused said notes to be_"arbitrage bonds" as defined in Section 103(d) of the Internal Revenue Code, of 1954, as amended, and all rules and regulations relating thereto. 13. The County further covenants that it will not permit at any time or times any of the proceeds of the Delinquent Tax Revolving Fund Notes, Series 1973, or any other funds of the County to be used directly or indirectly in a manner which would result in the exclusion of any of said notes from the treatment afforded by Section 103(a) of the Internal Revenue Code of 1954, as amended, by reason of the classification of such notes as "industrial development bonds" -6- Fred D. Hougl-eChairman within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended and all rules and regulations relating thereto. 14. The County shall keep full and complete records of all deposits to and withdrawals from each of the funds and accounts in the Oakland County De- linquent Tax Revolving Fund No. 46190 and of all other transactions relating to such funds and accounts and of all investments and reinvestments of monies in such accounts and the interest and gain derived therefrom. The Finance Committee, .b,T Mr. Fred D. Houghten, Chairman, moves the adoption of the foregoing resolution. Moved by Houghten supported by Perinoff the resolution be adopted. Discussion followed. AYES: Olson, Perinoff, Pernick, Quinn, Richardson, Vogt, walker, Wilcox, Berman, Brotherton, Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Moffitt, Montante, Nowak. (26) NAYS: 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 atrue 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 issuance of $14,250,000 Delinquent Tax Revolving Fund Notes, Series 1973, 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. Allen, Clerk of Oakland County