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HomeMy WebLinkAboutResolutions - 1975.03.19 - 14739March 20 , 1975 RESOLUTION NO.: 7020 RE: AUTHORIZATION TO BORROW AGAINST ANTICIPATED DELINQUENT TAXES BY: FINANCE COMMITTEE 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 to borrow to fund part of said Fund for the 1974 Delinquent Taxes, 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 had heretofore been directed to so 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 two Million Dollars ($22,000,000. ) and issue its notes in anticipation of the collection of the 1974 delinquent taxes which become delinquent on March 1, 1975, 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 1974 delinquent taxes which will be outstanding on March 1, 1975 is estimated to be in excess of $22,000,000, 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 twenty two Million Dollars ($22,000,000) or such part thereof as will represent not to exceed the exact amount of 1974 delinquent taxes outstanding on March 1, 1975 exclusive of interest, fees and penalties and as the Municipal Finance Commission may authorize, and issue its "General Obligation Tax Revolving Fund Notes, Series 1975 11 , hereinafter referred to as the "notes" in anticipation of the collection of the 1974 delinquent - 2 - 3 taxes outstanding and unpaid on March 1, 1975, 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 Account No. 46192 . Notes shall only be issued in multiples of ,$5,000 and shall have interest coupons affixed thereto. 2. The said notes shall bear interest payable November 1, 1975, May 1, 1976 and each November 1st and May 1st thereafter until maturity which interest is not to exceed six percent (6%) per annum. Said notes shall be issued in denominations of $5,000 each and shall be numbered from 1 upwards. The notes shall be dated April 1, 1975, and shall be due and payable as follows: $ 8,000,000. on or before May 1, 1976, $7,000,000. on or before May 1, 1977 and not to exceed $7,000,000. on or before May 1, 1978. 3. All collections of the aforesaid 1974 delinquent taxes outstanding and unpaid on March 1, 1975, together with all interest thereon (including fees and penalties on such delinquent taxes), are hereby pledged to the prompt payment of the principal of and interest on the aforesaid notes; the proceeds of the 1974 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 (including such fees and penalties) shall be deposited into and accounted for separately in the Oakland County Delinquent Tax Revolving Fund Account No. 46192. 4. The aforesaid notes shall be full faith and credit obligations of Oakland County and if the proceeds of the 1974 delinquent taxes pledged and other monies in the Oakland County Delinquent Tax Revolving Fund Account No. 46192 for the year 1974 are not sufficient to pay the principal and interest of the notes when due, the County shall levy a tax without limitation as to rate or amount on all taxable property in the County to pay them and may thereafter reimburse itself from 'delinquent taxes collected. 5. Pursuant to the resolution of this Board of Commission- ers adopted March 1, 1973, there is hereby established Oakland County Tax Revolving Fund Account No. 46192 effective as of March 1, 1975, into which Fund the County Treasurer is hereby directed to place on his books and records all payments received on or after March 1, 1975, on account of the 1974 delinquent taxes as returned to him by any tax collector in the county on or after March 1, 1975, which Fund it is presently estimated will be in an aggregate amount in excess of $22,000,000. , including the proceeds of the borrowing hereby authorized, and from which Fund the County Treasurer shall repay the borrowing using the receipts of the delinquent taxes in- cluding interest outstanding and unpaid on March 1, 1975, including fees and penalties on such taxes and shall pay from the proceeds of the borrowing, the full amount of 1974 delinquent taxes delivered to him by any tax collector in the county and outstanding and unpaid on or after March 1, 1975. Collection fees and penalties received after March 1, 1975, by the County Treasurer in connection with the payment to him of 1974 delinquent taxes shall be separately record- ed and kept in the said Delinquent Tax Revolving Fund Account No 46192 Account No 46192 until said Notes have been paid in full. . After a sufficient sum has been set aside for the purpose of paying the aforesaid notes, any further collection of the aforesaid 1974 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, and shall not be transferred or disbursed out of said Fund - 4 - special, assessment district or any other political unit for which delinquent tax payments other than for the year 1974 are due on settlement day with the county, city or township treasurers. 7. 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 shall be substantially in the form attached hereto and hereby approved and adopted. The notes shall be numbered from 1 upwards, beginning with the earliest maturity, in the direct order of their maturities. 8. The notes shall not be subject to redemption prior to maturity. 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 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, 1975. The Coupons affixed to said notes shall be executed with the facsimile signatures of the Chairman of the Board of Commissioners and the Clerk of the County of Oakland. 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 $ 22,000,000. and issue its Oakland County General Obligation Tax Revolving Fund Notes, Series 1975, - 5 - , therefor as aforesaid and the County Treasurer is further authorized to hold a public sale of said notes (after insertion of the notice attached to this resolution as provided in paragraph 11 hereof), provided such notes shall not be sold at a discount. 11. 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 and once in the e & Oakland Press , a newspaper of general circulation in the County of Oakland, which notice shall be in substantially the form set forth in the attachment to this resolution. 12. The aforesaid notes shall be delivered with the unqualifi- ed 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 of the notes will be at the expense of the County of Oakland, and provided that the notes will be delivered at the County's expense in New York, New York, Chicago, Illinois or Detroit, Michigan. 13. Notwithstanding any other provision of this resolution or other resolution 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), of the General Obligation Tax Revolving Fund Notes, Series 1975, 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 thereto. tchar COX airma 1 1of APPROVE THE FOREGOING RESOLU " niel T. hIlipbilCi'l6iirryi Dale 14. The County further covenants that it will not permit at any time or times any of the proceeds of the General Obligation Tax Revolving Fund Notes, Series 1975, 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" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and all rules and regulations relating thereto. 15. 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 Delinquent Tax Revolving Fund Account Nov. 46192 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, by Richard Wilcox Chairman, moves the adoption of the foregoing resolution. FINANCE COMMITTEE 7 Moved by Wilcox supported by Pern ck the resolution be adopted. , Discussion followed: AYES: Roth, Simmons, Wilcox, Wilson, Aaron, Button, Coy, Daly, Dearborn, Douglas, Dunieavy, Fortino, Hoot, Houghten, Kasper, McDonald, Moffitt, Montante, Nowak, Olson, Page, Patterson, Perinoff, Pernick, Price. (25) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. [FORM OF NOTE] UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND Number $5,000 GENERAL OBLIGATION TAX REVOLVING FUND NOTE SERIES 1975 KNOW ALL MEN BY THESE PRESENTS, that the County of Oakland, Michigan, hereby acknowledges itself indebted and for value received, promises to pay to the bearer hereof the sum of FIVE THOUSAND DOLLARS on the first day of May, A.D. 19 , together with interest there- on from the date hereof until paid, at the rate of per centum ( %) per annum, payable on November 1, 1975, and thereafter semi-annually on the first days of May and November in each year. Both principal and interest are payable in lawful money of the United States of America at t in the City of P upon presentation and surrender of this note and the coupons hereto attached as they severally mature. This note is one of a series of notes of like date and tenor except as to maturity numbered consecutively in the direct order of their maturities from 1 to t both inclusive, aggregating the principal sum of . ($ ), issued under and pursuant to and in full conformity with the Constitution and Statutes of the State of Michigan and especially No. 202 of the Michigan Public Acts of 1943, as amended, in anticipation of the collection of delinquent taxes for the year 1974 paid or to be paid to the Oakland County Treasurer for deposit in the Oakland County Delinquent Tax Revolving Fund No. . The proceeds of this series of notes will be used to make payments for taxes returned to the County Treasurer as delinquent on March 1, 1975. For the payment of the principal of and interest on these notes, there is hereby pledged all of the collections of the delinquent taxes of Oakland County for the year 1974 which were outstanding and uncollected on March 1, 1975, together with all interest, fees and penalties thereon. In addition, thereto the full faith, credit and resources of the County of Oakland are hereby irrevocably pledged for the prompt pay- ment of said principal and interest at maturity. Notes of this series are not subject to redemption prior to maturity. 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 the chais.man of its Board of commissioners and its County Clerk and its corporate seal to be affixed hereto, and has caused the annexed interest coupon to be executed with the facsimile signatures of the Chairman of its Board of Commissioners and its County Clerk, all as of the first day of April, 1975. COUNTY OF OAKLAND By Chairman of Board of commissioners By County Clerk (SEAL) (COUPON) Number On the first day of , A.D., 19 , the County of Oakland, Michigan, will pay to the bearer hereof the sum shown hereon lawful money of the United States of America at the , in the City of , same being the interest due on that day on its General Obligation Tax Revolving Fund Note, 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 Tax Revolving Fund as set forth in the notes to which this coupon pertains. Clerk Chairman, Board of Commissioners OFFICIAL NOTICE OF SALE STATE OF MICHIGAN COUNTY OF OAKLAND GENERAL OBLIGATION TAX REVOLVING FUND NOTE SERIES 1975 Sealed bids for the purchase of General Obligation Tax Revolving Fund Notes, Series 1975, of the County of Oakland, Michigan, of the par value of not to exceed $ will be received by the undersigned at the office of the County Treasurer, , until 11:00 o'clock A.M., , 1975, at which time and place they will be publicly opened and read. The notes will be coupon notes of the denomination of $5,000.00 each, will bear interest from their date payable on November 1, 1975, and semi-annually thereafter, will be dated April 1, 1975, will be numbered in direct order of maturity from 1 to , inclusive, and will mature serially, on May 1 on years and amounts as follows: Year Amount 1976 1977 1978 Not to Exceed $ The notes shall not be subject to redemption prior to maturity. The notes will bear interest from their date at a rate or rates specified by the successful bidder, not exceeding per cent ( t) per annum, expressed in multiples of 1£77-7ii—of.—.-W 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 percent (1%). Both principal and interest will be payable at a bank or trust company located in the State of Michigan aualified 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 and approved by the County Treasurer. The designation of paying agent shall be made by letter or telegram to the undersigned within ° 48 hours after the award has been made. 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 after discussion with the original purchaser. 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, regard- less of the final amount of notes actually delivered from April 1, 1975, 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, Alor 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. The notes are issued for the purpose of establishing the County's Delinquent Tax Revolving Fund for the 1974 tax year and are secured by the delinquent taxes which became due and payable to the County of Oakland for the year 1974 on March 1, 1975, and all such taxes together with all interest thereon 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. 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 chased, and the amount received therefor will be credited against the purchase price at and as of the date of delivery. Checks of unsuccessful bidders will be promptly returned to each bidder's representative or by registered mail. Bids shall be conditioned upon the unqualified approving opinion of Dickinson, Wright, McKean & Cudlip, 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 thereof. The County will furnish notes ready for execution at its expense. Fully executed notes will be delivered without expense to the purchaser at a bank or trust company to be mutually agreed upon between the County and the purchaser. 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. - 13 - 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. THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. Envelopes containing the bids should be plainly.marked "Proposal for General Obligation Tax Notes." C. Hugh Dohany County Treasurer County of Oakland APPROVED: STATE OF MICHIGAN MUNICIPAL FINANCE COMMISSION. STATE OF MICHIGAN ) )SS; COUNTY OF OAKLAND ) I, the undersigned, the duly qualified County Clerk of the County of Oakland, Michigan, do hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Commissioners at a regular _meeting held on the 20th day of March 1975, the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official signature this 21st day of March , A.D. ,1975.• Oakland County Clerk