HomeMy WebLinkAboutResolutions - 1977.02.17 - 13168RESOLUTION NO. 7845
BY: FINANCE COMMITTEE
RE: AUTHORIZATION TO BORROW AGAINST ANTICIPATED DELINQUENT
1976 TAXES
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRMAN, LADIES & GENTLEMEN:
WHEREAS, on March 1, 1973 , this Board of Commissioners adopted a
resolution establishing the Oakland County Delinquent Tax Revolving
Fund, pursuant to Section 87b of Act No. 206 of the Public Acts of 1893; as amended;
and
WHEREAS, this Fund has been designated as the "100% Tax Payment Fund" by
the Oakland County Treasurer, and it appears desirable to borrow to
fund part of said Fund for the 1976 delinquent taxes; and
Oakland WHEREAS, the purpose of this Fund is to allow the
County Treasurer (hereinafter sometimes referred to as the "County Treasurer" or
the "Treasurer") to pay from the Fund any or all delinquent taxes which are due the
County; any school district, intermediate school district; community college district;
city, township, special assessment or drain district; or any other political unit or
county agency for which delinquent tax payments are due on settlement day with the
county, city or township treasurer and has been heretofore directed to do so by this
Board of Commissioners; and
not to exceed Twenty-Five Million Dollars
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WHEREAS, it is hereby determined that it is necessary that
Oakland County (hereinafter referred to as the "County") borrow a sum
($ 25,000,000 ) and issue its notes in anticipation of the collection of the 1976
delinquent real property taxes which become delinquent on or before March 1, 1977
and deposit the proceeds thereof in the aforesaid Fund; and
WHEREAS, such borrowing is authorized by Section 87c of Act No. 206 of the
Public Acts of 1893, as amended (hereinafter referred to as "Act 206"); and
WHEREAS, the total amount of unpaid 1976 taxes which will be outstanding on
March 1, 1977 is estimated to be in excess of $ 25,000,000 , exclusive of
interest, fees and penalties.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE COUNTY OF OAKLAND as follows:
1. The County shall borrow Twenty -Five Million
Dollars ($ 25,000,000 ) or such part thereof as will represent not to exceed the
exact amount of the 1976 delinquent taxes outstanding on March 1, 1977, exclusive of
interest, fees and penalties and, as the Municipal Finance Commission may authorize,
issue its "General Obligation Tax Notes, Series 1977", payable from the collection of
the 1976 delinquent taxes outstanding on March 1, 1977, as specified above, the
proceeds of which notes shall be placed in and used as the whole or part of the
County's 100% Tax Payment Fund Account No. 46194
Act 206.
, to be used as provided in
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2. The said notes shall bear interest payable November 1, 1977, May 1, 1978
and each November and May 1 thereafter until maturity, which interest is not to
exceed eight and three-quarters per cent (8 3/4%) per annum. Said notes shall be
coupon notes issued in denominations of $5,000 each and shall be numbered from
1 upwards, beginning with their earliest maturities in the direct order of their
maturities. The notes shall be dated April 1, 1977 and shall be due and payable as
follows: $ 8,000,000 on or before May 1, 1978; $ 8,000,000 on or before
May 1, 1979, and not to exceed $ 9,000,000 on or before May 1, 1980.
3. There is hereby established the County's 100% Tax Payment Fund
Collection Account No. 46194 (hereinafter referred to as the "Collection
Account"), effective as of March 1, 1977, into which Fund the County Treasurer is
hereby directed to place on the books and records all payments received on account
of the 1976 delinquent taxes as returned by any tax collector in the County, and from
which Fund the County Treasurer shall repay the borrowing, using the receipts of the
1976 delinquent taxes, including interest, outstanding and unpaid on March 1, 1977.
4. AU collections of the aforesaid 1976 delinquent taxes, together with all
interest thereon, are hereby pledged to the prompt payment of the principal of and
interest on the aforesaid notes; the proceeds of the 1976 delinquent taxes so pledged
shall be used for no other purpose until the notes are paid in full, including interest;
and all such delinquent taxes so pledged, together with all interest thereon, shall be
deposited into and accounted for separately in the Collection Account.
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5. The notes shall be full faith and credit obligations of the County, and if
the proceeds of the 1976 delinquent taxes pledged and other moneys in the
Collection Account for the year 1976 are not sufficient to pay the principal and
interest of the notes when due, the County shall impose a general ad valorem tax
without limitation as to rate or amount on all taxable property in the County to pay
the principal and interest on said notes and may thereafter reimburse itself from
delinquent taxes collected.
6. The County Treasurer, pursuant to Section 87c, subsection 3, of Act 206 is
hereby designated as Agent for the County, and the County Treasurer and the
Treasurer's office shall respectively receive such sums as are therein provided for
the services as Agent for the County and to cover administrative expenses.
7. The County Treasurer shall use the proceeds of the borrowing to continue
the County's 100% Tax Payment Fund and shall pay therefrom the full amount of
1976 delinquent taxes delivered by any tax collector in the County which are
outstanding and unpaid on or after March 1, 1977, as required by Act 206, together
with the expenses of this borrowing.
8. After a sufficient sum has been set aside for the purpose of paying the
aforesaid notes, any further collection of the aforesaid 1976 delinquent taxes may
be used to pay any or all delinquent taxes which are due and payable to the County;
any school district; intermediate school district; community college district; city,
township, special assessment or drain district; or any other political unit for which
delinquent tax payments other than for the year 1976 are due on settlement day
with the county, city or township treasurers.
Page Five
9. The notes of each maturity shall be payable to bearer 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 the
notes and coupons shall be substantially in the form attached hereto and hereby
approved and adopted. A co-paying agency located either in Michigan or elsewhere
in the United States of America may also be designated by such purchaser. The
Treasurer shall have the right to approve such paying agent or agents as set forth in
the Notice of Sale attached hereto.
10. The notes shall not be subject to redemption prior to maturity.
IL The County Treasurer is hereby authorized and directed to execute the
notes for the County. The Treasurer is thereafter authorized and directed to
deliver the notes to the purchaser upon receipt of the purchase price, which
delivery may be made in the discretion of the Treasurer at at one time or in parts
at various times, provided that 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, 1977. The coupons affixed to the notes
shall be executed with the facsimile signature of the County Treasurer, and the
notes shall be sealed with the county seal.
12. The County Treasurer be, and is hereby, authorized to make application
to the Municipal Finance Commission for the County for an order permitting this
County to borrow not to exceed$ 25,000,000 and issue its General Obligation
Tax Notes, Series 1977.
Page Six
13. The County Treasurer shall conduct a public sale of the notes (after
insertion of the Notice attached to this resolution and as provided in paragraph 14
hereof), provided such notes shall not be sold at a discount, after which sale the
Treasurer shall award the notes to the lowest bidder. The conditions of sale shall
be as specified in said Notice.
14. Sealed proposals for the purchase of the notes shall be received up to
such time as shall later be determined and notice thereof shall be published in
accordance with law once in the BOND BUY ER , which is
hereby designated as being a publication printed in the English language and
circulated in this State, which carries as a part of its regular service notices of sale
of municipal bonds. The Notice shall be in substantially the form in the attachment
to this resolution.
15. The notes shall be delivered with the unqualified opinion of Dickinson,
Wright, McKean, Cudlip & Moon, Attorneys of Detroit, Michigan, approving the
legality of the notes, and the cost of said legal opinion and the printing of the notes
will be at the expense of the County. The notes will be delivered at the expense of
the County in such city or cities designated by the Treasurer in the Notice of Sale.
16. Notwithstanding any other provision of this resolution or other
resolutions adopted heretofore, the County hereby covenants with the purchaser
(within the meaning of the Proposed Regulations prescribed by the Commissioner of
Internal Revenue on May 3, 1973, as revised on December 3, 1975) of the General
Obligation Tax Notes, Series 1977, that the County will make no use of the
proceeds of the notes which, if such use had been reasonably expected on the date
of issue of the notes, would have caused the notes to be "arbitrage bonds", as
defined in Section 103 Hof the Internal Revenue Code of 1954, as amended, and all
rules and regulations thereto.
1 HERMY APPROVE THE 70R,TGOING RESOLUI1CN
77
Page Seven
17. The County further covenants that it will not permit at any time any of
the proceeds of the General Obligation Tax Notes, Series 1977, 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
the notes as "Industrial Development Bonds" within the meaning of Section 103(b)
of the Internal Revenue Code of 1954, as amended, and all rules and regulations
relating thereto.
18. The County shall keep full and complete records of all deposits to and
withdrawals from each of the funds and accounts in the County's 100% Tax
Payment Fund Account and Collection Account and of all other transactions
relating to such funds and accounts and of all investments of moneys in such
accounts and the interest and gain derived therefrom.
FINANCE COMMITTEE
Number $5,000
(FORM OF NOTE)
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
GENERAL OBLIGATION TAX NOTE, SERIES 1977
KNOW ALL MEN BY THESE PRESENTS, that the County of
Oakland , Michigan, hereby acknowledges itself indebted and for value
received, promises to pay to the bearer hereof the sum of
FIVE THOUSAND DOLLARS
on the first day of
from the date hereof until paid, at the rate of
%) per annum, payable on
semi-annually on the first days of
year. Both principal and interest are payable in lawful money of the United States
of America at , upon
presentation and surrender of this note and the coupons attached hereto as they
severally mature.
This note is one of a series of notes of like date and tenor, except as to
maturity , numbered consecutively in the direct
order of their maturities from I. to , both inclusive, aggregating the
principal sum of
Dollars ($ ), issued under and pursuant to and in full conformity
with the Constitution and Statutes of the State of Michigan and especially
Act No. 206 of the Michigan Public Acts of 1893, as amended. The proceeds of this
series of notes will be used to make payments to all taxing units in the County for
the 1976 real property taxes returned to the County Treasurer as delinquent on
March 1, 1977.
For the payment of the principal and interest on these notes, there is hereby
pledged all of the collections of the delinquent real property taxes due and payable
to taxing units in Oakland County, including the County of
Oakland , for the year 1976, which were outstanding and uncollected on
March 1, 1977, together with all interest thereon, which amounts will be deposited
in the County's 100% Tax Payment Fund. The primary obligation to pay to the
County the amount of such delinquent taxes and the interest thereon (except those
amounts due as county tax) rests with the respective local taxing units. In addition
thereto, the full faith, credit and resources of the County of Oakland
are hereby irrevocably pledged for the prompt payment of said principal and
interest at maturity.
Notes of this series are not subject to redemption prior to maturity.
, A.D. 19 , together with interest thereon
per centum
1, 1977, and thereafter
in each arid
Page Two
It is hereby certified, recited and declared that all acts, conditions and things
required to exist, happen and be performed precedent to and in the issuance of the
notes of this series, existed, have happened and have been performed in due time,
form and manner as required by the Constitution and Statutes of the State of
Michigan.
IN WITNESS WHEREOF, the County of Oakland , Michigan, has
caused this note to be signed in its name by its Treasurer and its corporate seal to
be affixed hereto, and has caused the annexed interest coupons to be executed with
the facsimile signature of its Treasurer, all as of the first day of April, 1977.
COUNTY OF OAKLAND
By C. Hugh Dohany
Treasurer
(SEAL)
Oakland County Treasurer
(COUPON)
Number $5,000
On the first day of , A.D., 19 , the County of Oakland
Michigan, will pay to the bearer hereof the sum shown hereon in lawful money
of the United States of America at the
, same being the interest
due on that day on its General Obligation Tax Note, Series 1977, bearing the number
shown hereon. This coupon is payable from certain delinquent tax payments to
be received by the County of Oakland and deposited in the Oakland
County 100% Tax Payment Fund, as set forth in the notes to which this coupon
pertains.
C. Hugh Dohany
OFFICIAL NOTICE OF SALE
STATE OF MICHIGAN
COUNTY OF OAKLAND
GENERAL OBLIGATION TAX NOTES, SERIES 1977
the purchase of General Obligation Tax Notes, Series 1977, of
Oakland Michigan, of the par value of
will be received by the undersigned at the office of the County
Michigan, until , Michigan Time,
, 1977, at which time and place they will be
publicly opened and read. Sealed bids will also be received, in the alternative, on
the same date and until the same time, by an agent of the undersigned at the office
of the Municipal Advisory Council of Michigan, 2135 First National Building,
Detroit, Michigan 48226, where they will simultaneously be publicly opened and
read. Bidders may choose either location to present bids and good faith checks, but
not at both locations. The notes will be awarded to the successful bidder at a
proceeding conducted by the County Treasurer, to be held at P.M. on
that date.
NOTE DETAILS: The notes will be coupon notes of the denomination of $5,000
each, will bear interest from their date payable on November 1, 1977, and semi-
annually thereafter, will be dated April 1, 1977, will be numbered in direct order of
maturity from 1 to , inclusive, and will mature serially on May I in years
and amounts as follows:
YEAR AMOUNT
1978
1979
1980
PRIOR REDEMPTION: The notes shall not be subject to redemption prior to
maturity.
INTEREST RATE AND BIDDING DETAILS: The notes will bear interest from their
date at a rate or rates specified by the successful bidder, not exceeding
per cent ( %) per annum,
expressed in multiples of 1/8 or 1/20 of 1%, or any combination thereof. Interest
on the notes of any maturity shall be at one rate only, and the difference between
the highest and lowest rate of interest bid shall not exceed one per cent (1%).
PAYING AGENT: Both principal and interest will be payable at a bank or trust
company located in the State of Michigan, qualified to act as paying agent under
the statutes of the State of Michigan or of the United States of America, to be
designated by the original purchaser of the notes, who may also designate a co-
paying agent, which may be located outside of Michigan, qualified to act as paying
agent under the law of the State in which located or of the United States of
America, both of which shall be subject to the approval of the County Treasurer.
The designation of paying agent or paying agents shall be made by letter or
telegram to the undersigned within 48 hours after receiving written notice. In the
event no paying agent is designated within the time herein provided, or in the event
that the paying agent designated is not qualified under the statutes of this State or
of the United States, or is not approved by the Treasurer, the Treasurer shall
appoint the paying agent or paying agents after discussion with the original
purchaser.
SEALED BIDS for
the County of
Treasurer, _
Page Two
PURPOSE AND SECURITY: The notes are issued for the purpose of establishing
the County's 100% Tax Payment Fund for the 1976 tax year. The notes are secured
by the delinquent real property taxes which became due and payable to the County
of Oakland for the year 1976 on or before March 1, 1977, and all
such taxes together with all interest thereon unpaid on that date are pledged to
the prompt payment of the principal of and interest on the notes. All governmental
units in the County which receive payments from the fund have a primary obligation
to pay to the County the amount of such payments with interest thereon at the
highest rate borne by the notes being issued, should the taxes pledged be uncollectable
for any reason. The notes are also the general obligation of the County, and for
the prompt payment of the principal of the notes and the interest thereon, when
due, the County shall impose a general ad valorem tax, without limitation as to
rate or amount, on all taxable property in the County to pay such principal and
interest.
AWARD OF NOTES: For the purpose of awarding the notes, the interest cost of
each bid will be computed by determining, at the rate or rates specified therein,
the total dollar amount of all interest on the notes, regardless of the final amount
of notes actually delivered, from 1977 to their maturity and
deducting therefrom any premium. The notes will be awarded to the bidder whose
bid on the above computation produces the lowest interest cost to the County.
No proposal for less than par, nor less than all of the notes, will be considered.
Each bidder, for the convenience of the County, shall state in his bid the net interest
cost to the County, computed in the manner above specified.
GOOD FAITH: A certified or cashier's check in the amount of $
drawn upon an incorporated bank or trust company and payable to the order of
the Treasurer of the County of Oakland , must accompany each bid
as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated
damages if such bid is accepted and the bidder fails to take up and pay for the
notes. No interest will be allowed on good faith deposits. The good faith check
of the winning bidder will be promptly cashed, and the amount received therefor
will be credited against the purchase price as of the date of delivery. Checks of
unsuccessful bidders will be promptly returned to each bidder's representative or
by registered mail.
LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion
of Dickinson, Wright, McKean, Cudlip & Moon, Attorneys of Detroit, Michigan,
approving the legality of the notes, copies of which will be printed on the reverse
side of each note, and the original of the opinion will be delivered without expense
to the purchaser of the notes at the delivery thereof.
DELIVERY OF NOTES: The County will furnish notes ready for execution at its
expense at
The usual documents, including a certificate that no litigation is pending affecting
the issuance of the notes, will be delivered at the time of the delivery of the notes.
If the notes are not tendered for delivery by twelve o'clock noon, Michigan Time,
on the 45th day following the date of sale, or the first business day thereafter if
said 45th day is not a business day, the successful bidder may on that day, or any
time thereafter until delivery of the notes, withdraw his proposal by serving notice
of cancellation, in writing, on the undersigned in which event the County shall
promptly return the good faith deposit. Payment for the notes shall be made in
Federal Reserve Funds. Accrued interest to the date of delivery of the notes shall
be paid by the purchaser at the time of delivery.
Page Three
CUSIP NUMBERS: Cusip numbers have been applied for and will be printed on the
notes at the County's expense. The printing of incorrect Cusip numbers or the
failure to print the Cusip numbers on the notes shall not constitute cause for the
purchaser to refuse delivery of the notes.
ADDITIONAL INFORMATION: Further information may be obtained from the
Oakland County Treasurer at the address specified above.
THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.
ENVELOPES: Envelopes containing the bids should be plainly marked "Proposal for
General Obligation Tax Notes."
APPROVED:
STATE OF MICHIGAN
MUNICIPAL FINANCE COMMISSION
aKian
C. Hugh Dohany
County Treasurer
Page 8.
Moved by Wilcox supported by Peterson the rules be suspended for the
immediate consideration of the resolution.
AYES: Gabler, Gorsline, Hoot, Kasper, Kelly, Lanni, McConnell, McDonald,
Moffitt, Montante, Moxley, Murphy, Olson, Patterson, Perinoff, Pernick, Peterson,
Roth, Simson, Wilcox, Aaron, Daly, DiGiovanni, Doyon, Fortino, (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the motion carried,
Thereafter it was moved by Mr. Kasper and seconded by
Mr. Perinoff that the resolution be adopted.
Discussion followed.
AYES: Gorsline, Hoot, Kasper, Kelly, Lanni, McDonald, Moffitt, Montante,
Moxley, Murphy, Olson, Patterson, Perinoff, Pernick, Peterson, Roth, Wilcox,
Aaron, Daly, Doyon, Fortino, Gabler. (22)
NAYS: None. (0)
ABSENT: DiGiovanni, McConnell, Page, Price, Simson. (5)
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 Com-
missioners of the County of Oakland , Michigan, do hereby certify that
the foregoing is a true and complete copy of proceedings taken at a
regular meeting of the Board of Commissioners of said County, held on the
17th day of February , 1977, insofar as the same relate to the
borrowing of not to exceed $ 25,000,000 and the issuance of Oakland
County General Obligation Tax Notes, Series 1977, the original of which is on file in
my office.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this
18th day of February , A.D., 1977.
Oakland County Clerk
Lynn D. Allen
ACKNOWLEDGMENT OF DESIGNATION
, 19 ,
the Oakland County's Delinquent Tax Revolving Fund was desig-
nated by the County Treasurer as the Oakland County 100%
Tax Payment Fund, pursuant to Section 87b of Act 206 of the Michigan Public Acts
of 1893, as amended.
The undersigned, the Treasurer of the County of Oakland 9
Michigan, hereby acknowledges and says that on
Oakland County Treasurer
