HomeMy WebLinkAboutResolutions - 1985.10.24 - 11251MISCELLANEOUS RESOLUTION # 85288 October 10, 1985
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
IN RE: 1985 COUNTY GENERAL FUND PROPERTY TAX AND PARKS AND RECREATION TAX RATE
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
• WHEREAS THE County has a fixed millage tax rate of 5.26 mills; a voted
.25 mill for Parks and Recreation; and
WHEREAS the Huron-Clinton Authority has requested the County to apply a
.25 mill property tax rate; and
WHEREAS the combined rollback required by Art. 9, Sec. 31 of the Michigan
Constitution, the Headlee Tax Limitation amendment, has authorized the County
tax rate of 5.26 mills, the Parks and Recreation tax rate of .25 mill and the
Huron-Clinton Authority rate which remains at .25 mill; and
WHEREAS Public Act 213 of 1981, "Truth in Assessing" Act requirements, sets
the maximum allowable County tax rate at 5.26 mills and the Parks and Recreation
Tax Rate at .25 mill; and
WHEREAS Public Act 5 of 1982, "Truth in Taxation" Act, requires the County
Board of Commissioners to hold a public hearing if the recommended Property Tax
rate exceeds the allowable Base Tax Rate of 4.5148 mills; and
WHEREAS the County Executive recommends that there be no increase in the
County General Fund current property tax rate; and
WHEREAS it is recommended that the 1985 County General Fund Property Tax
rate be set at 4.6391 mills, .6209 mill below the maximum allowable tax rate and
the Parks and Recreation tax rate at .2500 mill, the maximum allowable tax rate
(provided that the County General Fund Property Tax rate not be changed from
4.6391 mills); and
WHEREAS $71,070,764 is the amount of the 1986 County Budget to be raised by
taxation based on the 1985 Equalized Valuation of $15,319,946,552 at the recom-
mended tax rate of 4.6391 mills, together with the voted .2500 mill for Parks and
Recreation or $3,829,987 and the .2500 mill for the Huron-Clinton Authority or
$3,829,987.
NOW THEREFORE BE IT RESOLVED that each Supervisor of the various townships
and Assessing Officers of the several cities of Oakland County be and they are
hereby authorized and directed to spread on their respective township or city tax
rolls for the year 1985 the following tax rates to be applied to their 1985
equalized valuation:
4.6391 mills .2500 mill .2500 mill
FINANCE COMMITTEE
HER ( APP / ,
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R,FGC)!NC.; RESOLUTION
1) nit- 1T. Murph ri ats
1985 County Voted for Huron—Clinton
General Property Tax Levy Parks and Recreation Authority
BE IT FURTHER RESOLVED that the setting of the Parks and Recreation tax rate
of .2500 mill is with the provision that the County General Fund Property Tax rate
not be changed from 4.6391 mills.
Mr. Chairperson, on behalf of the Finance Committee, I move the adoption of the
foregoing resolution.
OAKLAND COUNTY, MICHIGAN
1936 PROPERTY TAX RATE COMPUTATION
The 1986 property tax rate computation is impacted by several State statutes, including:
- The Headlee constitutional tax limitation amendment, adding section 211.34d
of the Michigan Compiled Laws, subsequently amended by PA 539 of 1982,
- The "Truth in Assessing" Act, Public Act 213 of 1981 amending section 211.34
of the Michigan Compiled Laws,
- The "Truth in Taxation" Act, Public Act 5 of 1982, adding section 211.24e of
the Michigan Compiled Laws.
A capsule statement of the purpose of each statute as well as the computation of their
respective rollback fractions are provided in attached Schedules I, II and III. The Headiee
and "Truth in Assessing" rollback are compound reductions based on the County's maximum
authorized operating levy of 5.26 mills.
Headlee Rollback
Maximum Authorized Levy
1979-85 CMRF 1)
Headlee Authorized Levy
5.2600 mills
1.0000
5.2600 mills
1) Although the Compound Millage Reduction Fraction computes to 1.0150 because the
increase in the State Equalized Value (2.7%), excluding losses and additions, was less
than the increase in the General Price Level (4.3%), the CMRF cannot exceed 1.0 for
any year.
Truth in Assessing Rollback
Headlee Authorized Levy
1985 Sec. 34 Rollback Fraction
Allowable Tax Levy
5.2600 mills
1.0000
5.2600 mills
Truth in Taxation Rollback
The Truth in Taxation Base Tax Rate is computed against the millage rate actually levied in
the immediately concluding fiscal year.
1984 Actual Tax Rate
1985 Base Tax Rate Fraction
1985 Base Tax Rate
4.6391 mills
.9732
4.5148 mills
The Board of Commissioners may levy a millage rate up to the Base Tax Rate of 4.5148
mills without holding a Public Hearing. The Board has the further discretion of levying an
additional millage rate, up to 5.26 mills, only after holding a public hearing and adopting a
separate resolution specifying the Increased Tax Rate. The Board shall not levy a tax rate
in excess of the Allowable Tax Levy of 5.2600 mills.
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SCHEDULE II
"TRUTH IN ASSESSING"
1985 ROLLBACK FRACTION
Public Act 213 of 1981, "Truth in Assessing Act", which applies to counties and other
taxing authorities other than school districts, amended section 21134 of the Compiled Laws
of Michigan so that the taxing jurisdiction would be restricted to an operating levy based on
that unit's authorized valuation total rather than a full levy based on the State Equalized
Valuation. The Act restricts the County to a levy rate for operating purposes which will
yield no more revenue on the total State Equalized Valuation (S.E.V.) of the County than the
maximum authorized millage rate would have produced if levied on the total County
Equalized Valuation (C.E.V.). There is no provision for removal of the "Truth in Assessing"
rollback other than by placing a valuation on County property equal to the State equalized
level. The reduction fractions from the Headlee Amendment and the "Truth in Assessing"
Act compound in their cumulative/reduction of maximum authorized operating millage.
The 1985 section 21134 rollback fraction is computed as follows:
Total County Equalized Valuation = 1985 Sec. 34 Rollback Fraction
Total State Equalized Valuation
.15 319 946 552 I.0000
15,319,946,552
1985 Sec. 34 Rollback Fraction = 1.0000
SCHEDULE III
"TRUTH IN TAXATION"
BASE TAX RATE FRACTION
Public Act 5 of 1982 added section 211.24e to the Compiled Laws of Michigan which
requires that any local unit of government which levied more than one mill in 1984 shall
either reduce its 1985 levy rate to compensate for an increased tax base or advertise its
intention to increase property taxes and hold a public hearing to allow for taxpayer
intervention. No sooner than seven days after the public hearing,' the governing body may
then increase taxes by a vote of its members, provided that in no case can the levy rate
exceed the allowable rate which results from the compound reduction required by the "Truth
in Assessing" Act, Sec. 211.34, and the Headlee Amendment, Sec. 211.34d. It is important
to note that the Base Tax Rate that results from application of the "Truth in Taxation" Act
is based on the rate actually levied in the concluding fiscal year whereas the Headlee and
"Truth in Assessing" rollbacks are based on maximum authorized operating rates regardless
of the rate which was actually levied in the preceding year.
The 1985 section 211.24e Base Tax Rate Fraction is computed as follows:
1984 Total S.E.V.-Losses S.E.V. = 1985 Base Tax Rate Fraction
1985 Total S.E.V.-Additions S.E.V.
14,408,866,141-218,947 ,726 = .9732
15,319,946,552-739,103,057
1985 Base Tax Rate Fraction = .9732
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#85288 October 24, 1985
24th day of / ) October 19 85
ALLEN
County Clerk/Register of Deeds
Moved by Caddell supported by Webb the resolution be adopted.
Moved by Doyon supported by Aaron the resolution be amended by striking
4.6391 mills and insert 4.5148 mills.
AYES; Doyon, Fortino, McPherson, Moore, Perinaff, Pernick, Price, Aaron. (8)
NAYS: Caddell, Calandro, Gosling, Hassberger, Hobart, R. Kuhn, S. Kuhn,
Lanni, Law, McConnell, Moffitt, Nelson, Olsen, Page, Rewold, Skarritt, Webb, Wilcox. (18)
A sufficient majority not having voted therefor, the amendment failed.
Vote on resolution:
AYES: Calandra, Doyon, Fortino, Gosling, Hassberger, Hobart, R. Kuhn,
S. Kuhn, Lanni, Law, McConnell, McPherson, Moffitt, Moore, Nelson, Olsen, Page,
Perinoff, Pernick, Price, Rewold, Skarritt, Webb, Wilcox. Aaron, Caddell. (26)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution # 85288 adopted by the Oakland County Board of
Commissioners at their regular meeting held on October 24, 1985
with the orginial record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
this