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Home My WebLink AboutResolutions - 1976.03.04 - 14250March 4, 1976 RESOLUTION NO. 7470 BY: FINANCE COMMITTEE RE: AUTHORIZATION TO BORROW AGAINST ANTICIPATED DELINQUENT 1975 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 it appears desirable to borrow to fund part of said Fund for the 1975 Delinquent Taxes; and WHEREAS, this Fund has been designated as the "100% Tax Payment Fund" by the County Treasurer; 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 the County; and school district; intermed- iate 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 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 borrow a sum not to exceed twenty four million Dollars ($24,000,000. ) and issue its notes in anticipation of the collection of the 1975 delinquent real prop- erty taxes which become delinquent on or before March 1, 1976, (hereinafter referred to as the "1975 Delinquent Taxes") and deposit the proceeds thereof in the aforesaid Delinquent Tax Revolving 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 1975 taxes which will be outstanding on March 1, 1976 is estimated to be in excess of 324,000,000. , exclusive of interest, fees and penalties. NOW THEREFORE BE IT RESOLVED as follows: 1. The County shall borrow twenty four million Dollars (s24 1 000,000. ) or such part thereof as will repre- sent not to exceed the exact amount of the 1975 delinquent taxes outstanding on March 1, 1976 exclusive of interest, fees and pen- alties and, as the Municipal Finance Commission may authorize, issue its "General Obligation Tax Notes, Series 1976", payable from the collection of the 1975 delinquent taxes outstanding and unpaid on March 1, 1976, as specified above, the proceeds of which notes shall be placed in and used as the whole or part of the Oakland County 100% Tax Payment Fund Payment Account No. 461:93 to be used as provided in said Act 206. 2. The said notes shall bear interest payable November 1, 1976, May 1, 1977 and each November 1st and May 1st 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, 1976, and shall be due and payable as follows: $ 8,000,O00 on or before May 1, 1977, 7,000,000. on or before May 1, 1978 and not to exceed $ 9,000,000. on or before May 1, 1979. 3. There is hereby established Oakland County 100% Tax Payment Fund Collection Account No.46193 (hereinafter referred to as the "Collection Account N0,46193"), effective as of March 1, 1976, 2 into which Fund the County Treasurer is hereby directed to place on his books and records all payments received on account of the 1975 delinquent taxes as returned to him by any tax collector in the County, and from which Fund the County Treasurer shall repay the borrowing, using the receipts of the 1975 delinquent taxes, including interest, outstanding and unpaid on March 1, 1976. 4. All collections of the aforesaid 1975 delinquent taxes, together with all interest theron, are hereby pledged to the prompt payment of the principal of and interest on the aforesaid notes; the proceeds of the 1975 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 so pledged together with all interest thereon shall be deposite.d into and accounted for separately in Collection Account No. 46193. 5. The aforesaid notes shall be full faith and credit obligations of Oakland County, and if the proceeds of the 1975 delinquent taxes pledged and other money in Collection Account No. 4.6193 for the year 1975 are not sufficient to pay the prin- cipal 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 said 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 Oakland County 100% Tax Payment Fund and shall pay therefrom the full amount of 1975 delinquent taxes delivered to him by any tax collector in the County which are outstanding and unpaid on or after March 1, 1976, as required by Act 206, together with the expenses of this borrowing. 8. After a sufficient sum has been set aside for the pur- pose of paying the aforesaid notes, any further collection of the aforesaid 1975 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 1975 are due on settlement day with the county, city or township treasurers. 9. The aforesaid 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 pruchaser. 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. 11. The Oakland County Treasurer is hereby authorized and directed to execute said notes for and on behalf of the County of Oakland. The Treasurer is thereafter authorized and directed to deliver said notes to the purchaser thereof 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 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, 1976. The Coupons affixed to said notes shall be executed with the facsimile signature of the Oakland County Treasurer, and the notes shall be sealed with the Oakland County seal. 12. The Oakland County Treasurer be, and he hereby is, 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 $ 24,000,000. and issue its Oakland County General Obligation Tax Notes, Series 1976, therefor as aforesaid. 13. The County Treasurer shall conduct a public sale of said notes (after insertion of the notice attached to this resolution as provided in paragraph 14 hereof), provided such notes shall not be sold at a discount, after which sale he 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 said notes shall be received up to such time as shall later be determined by him and notice thereof shall be published in accordance with law once in the"Bond Buyer"which is a publication 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 aforesaid notes shall be denvered with the unqual- ified 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 of Oakland. 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. FINANCE COMMITTEE Lawrence R. Pernick, Chairman •v e 16. Notwithstanding any other provision of this resolution or other resolutions adopted heretofore, the County hereby cov- enants 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 1976, 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 t e Internal Revenue Code of 1954, as amended, and all rules and regulations thereto. 17. The County further covenants that it will not permit at any time any of the proceeds of the General Obligation Tax Notes, Series 1976, 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"withnthe meaning of Section 103(c) 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 Oakland County 100% Tax Payment Fund Payment Account No. 46193 and Collection Account No. 46193 and of all other transactions relating to such funds and accounts and of all in- vestments of moneys in such accounts and the interest and gain derived therefrom. MR. CHAIRMAN, on behalf of the Finance Committee, T. move the adoption of the foregoing resolution. EBYAPPRO'il THEF EGONGR -5,0LUTION 6 - Diniel T. 7C/T13 #7470 March 4, 1976 Moved by Pernick supported by Dearborn the resolution be adopted. AYES: Daly, Dearborn, Dunleavy, Fortino, Gabler, Hoot, Houghten, Kasper, Moffitt, Montante, Nowak, Olson, Page, Patterson, Perinoff, Pernick, Price, Roth, Simmons, Wilcox, Wilson, Aaron, Button. (23) 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 Resolution #7470 adopted by the Oakland County Board of Commissioners at their meeting held on March 4, 1976. with the original 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 4th March this ,......... ..... ......day 7.60 Lynn D, . „ — ,Clerk [FORM OF NOTE] UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND Number - 45,000 GENERAL OBLIGATION TAX NOTE, SERIES 1976 KNOW ALL MEN BY THESE PRESENTS, that the County of 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 , A.D. 19 , together with • .. interest thereon from the date hereof until paid, at the rate of per oentum ( %) per annm, payable on November , 1, 1976, and thereafter semi-annually on the first days of May and NOver',.b. in each year. Both principal and interest are payable in lawful money of the United States of America at upon presentation and surrend -er of this note and the coupons hereto . attached 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 1 to , both inclusive, aggregating the principal sum of OT-- ), issued under and pursuant to an in Lull conformity with the Constitution and Statutes of the State of Michigan and especially No. 206 of the Michigan Public Ac,ts of 1893, as amended. The proceeds of this series of notes will be used to make payments for 1975 real property taxes returned to the County ..7reasurer as delinquent on Yarch 1, 1976, which were unpaid on that date. For the payment of the principal of and interest on these notes, there is hereby pledged all of the collections of the delinquent real property taxes of Oakland - County for the year 1975, which were outstanding and uncblleeted on March 1, 1976, together with all interest thereon, which amounts will be deposited in the County's .100% Tax Payment Fund. In addition thereto, the full faith, credit and resources of the County of Oakland_ . are hereby irrevocably pledged for the prompt - payment of—Sard-pi-iHcipal and interest at maturity. Notes of this series are not sub -iect to redemption prior to maturity. By 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 WTTNESS Ufl=0F, the County of Oakland Michigan, has caused this note to be signed -rn-i-tS name -by as 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, 1976. COUNTY OF OAKLAND Treasurer (SEAL) (co upon) Number On the first day of County of Oakland hereof the sum shown nere(71: of America at the , A.D., 19 , the , Michigan, will pay to the Dearer , in lawful money o f the United States , same being the interest due on _ that day on its General Obligation Tax Note, Series 1976, bearing the number shown hereon. This coupon is payable from certain delinquent tax payments to he received by the County of Oakland and deDosited in the Oakland County 100% Tax Payment Fund as set forth in the notes to which this coupon pertains. [facsimile C. Hugh DohanyT • Oakland County Treasurer OFFICIAL NOTICE OF SALE • STATE OF MICNIGAU COUNTY OF . OAKLAND GENERI,L 03L1GATION TAX NOTES, SERIES 1976 SEALED BIDS for the purchase of General Obligation Tax Notes, Series 1976, of the County of Oakland , Michigan, of the par value of $_ will be received by the undersigned at the office of the County Treasurer, - Michigan, until .M., Michigan Time, , 1976, at which time and prEee they will be publicly openea.and read. Sealed bids will also he 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, 2150 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 o'clock .M. on that date. NOTE DETAILS: The notes will he coupon notes of the denomination of $57000 each, will bear interest from their date payable on November 1, 1976, and semi-annually theredfter, will be dated April 1, 1976, will he numbered in direct order of maturity from 1 to , inclusive, and will mature serially on in years and amounts as follows: YEAR . AMOUNT 1977 • 1978 1979 $-- -PRIOR REDEMPTION: The notes shall not be subject to redemption prior to maturity INTEREST RATE AND BIDDING DETAILS: The not e s 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%, 6i- 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 (11). 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 agant 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 under- signed within 48 hours afterreceiving written notice, In tha. 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. PURPOSE AND SECURITY: The notes are issued for the purpose of establishing the County's 100% Tax Payment Fund for the 1975- tax year and are secured by the unpaid delinquent real property taxes which became due and payable to the County of . Oakland for the year 1975 on or before March 1, 1976, 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 of the notes. The notes are also the general obligation of the. County of Oakland , and for the prompt payment of the principal of the notes and the interest thereon, when due, the _full faith and credit of the County of Oakland are irrevocably 'pledged. If the proceeds of the taxes pledged are not sufficient , to pay the principal and interest on the notes when due, the County of Oakland 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 April 1, 1976. 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 he 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. qoop 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 oplinion of Dickinson, Wright, McKean, Cudlip Moon, Attorneys of Detroit, Michigan, approving the legality of the notes, copies of which opinion 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 the roof. DELIVERY OF NOTE:S: The County will furnish notes ready for execution _ The usual docwoents, 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 notcs. 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 there a. until delivery of the notes, withd:raw his proposal by sea:Ving• 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. 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. TDDTTIONAL INFORMATION: Further information may be obtained from or from C. Hugh Dohany- County Treasurer, I Oakland , Michigan THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. , (Phone: ENVELOPS: Envelopes containing the bids should be plainly marked "Proposal for General Obligation Tax Notes." ' APPROVED: S'-2:TE OF MICHIGAN - MUNICTPAL FINANCE COY•TSSTON C. Hugh Dohany Oakland County Treasurer STATE OF MICHIGAN ) SSz COUNTY OF . • 1, the undersigned, the duly qualified and acting Clerk of the Board of Commissioners of the County of , Michigan,- do hereby -certify that the foregoing is a true and complete copy of proceedings taken at aH meeting of the Board of Commissioners of said County, held on the day of , 1976, insofar as the same relate to the borrowing of not to exceed and the issuance of County General Obligation Tax Notes, Series 1976, the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official • signature this day of , A.D., 1976. County Clerk