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HomeMy WebLinkAboutResolutions - 1974.02.14 - 15058February 14 , 1974 6557 RESOLUTION NO.: RE: AUTHORIZATION TO BORROW AGAINST ANTICIPATED DELINQUENT TAXES BY: FINANCE COMMITTEE - Fred D. Houghten, Chairman TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMAN: 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 1693, as amended, and it appears desirable to borrow to fund part of said Fund for the 1973 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 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 Sixteen Million Dollars ($16,000,000) and issue its notes in anticipation of the collection of the 1973 delinquent taxes which become delinquent on March 1, 1974, 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 1973 delinquent taxes which will be outstanding on March 1, 1974 is estimated to be in excess of $16,000,000, exclusive of interest, fees and penalties. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, as follows: I. The County shall borrow Sixteen Million Dollars ($16,000,000) or such part thereof as will represent the exact amount of 1973 delinquent taxes outstanding on March 1, 1974 exclusive of interest, fees and penalties and as the Municipal Finance Commission may authorize, and issue its "Delinquent Tax Revolving Fund Notes, -2- Series 1974", in anticipation of the collection of the 1973 delinquent taxes outstanding and unpaid on March 1, 1974, 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. 46191. 2. The said notes shall bear interest payable May 1, 1975 and each May 1st thereafter until maturity which is not to exceed six per cent (6%) per annum, shall be dated April 1, 1974, and shall be due and payable as follows: $6,400,000 on or before May 1, 1975, $4,800,000 on or before May 1, 1976 and not to exceed $4,800,000 on or before May 1, 1977 and all notes shall be subject to prepayment upon 90 days notice as hereinafter provided. 3. All collections of the aforesaid 1973 delinquent taxes outstanding and unpaid on March 1, 1974, together with all interests 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 1973 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. 46191. 4. The aforesaid notes shall be full faith and credit obligations of Oakland County and if the proceeds of the 1973 delinquent taxes pledged and other monies in the Oakland County Delinquent Tax Revolving Fund Account No. 46191 for the year 1973 are not sufficient to pay the principal and interest of the notes -3- 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. 46191 effective as of March 1, 1974, into which Fund the County Treasurer is hereby directed to place on his books and records all payments received on or after March 1, 1974, on account of the 1973 delinquent taxes as returned to him by any tax collector in the county on or after March 1, 1974, which Fund it is presently estimated will be in an aggregate amount in excess of $16,000,000, 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, 1974, including fees and penalties on such taxes and shall pay from the proceeds of the borrowing, the full amount of 1973 delinquent taxes delivered to him by any tax collector in the county and outstanding and unpaid on or after March 1, 1974. Collection fees and penalties received after March 1, 1974, by the County Treasurer in connection with the payment to him of 1973 delinquent taxes shall be separately record- ed and kept in the said Delinquent Tax Revolving Fund Account No. 46191 and shall not be transferred or disbursed out of said Fund Account No. 46191 until said Delinquent Tax Revolving Fund Notes, Series 1974, have been paid in full. 6. After a sufficient sum has been set aside for the purpose of paying the aforesaid notes, any further collection of the aforesaid 1973 delinquent taxes may be used to pay any or all de1in- -4- 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 1973 are due on settlement day with the county, city or township treasurers. 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. The notes shall be numbered from 1 upwards, beginning with the earliest maturity, in the direct order of their maturities. 8. The notes shall be subject to prepayment in whole or in part in inverse numerical order 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 -5- 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, 1974. 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 $16,000,000 and issue its Oakland County Delinquent Tax Revolving Fund Notes, Series 1974, therefor as afore- said and the County Treasurer is further authorized to negotiate the sale of said notes privately, provided such notes shall not be sold at a discount. 11. The aforesaid notes shall be 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 of the notes will be at the expense of the County of Oakland, and provided that the notes will be delivered at the place agreed upon with the purchaser. 12. 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 Delinquent Tax Revolving Fund Notes, Series 1974, that the County will make no use of the proceeds of said notes, which, if such -6- 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. 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 1974, 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. 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 Delinquent Tax Revolving Fund Account No. 46191 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 Fred D. Houghten Chairman, moves the adoption of the foregoing resolution. FINANCE COMMITTEE Fred D. Houghten, Chairman -7- [FORM OF NOTE] UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND DELINQUENT TAX REVOLVING FUND NOTE, SERIES 1974 No. KNOW ALL MEN BY THESE PRESENTS, that the County of Oakland, Michigan, acknowledges itself to owe and for value received promises to pay to the order of the bearer hereof, on the 1st day of May, 197 , the sum of Dollars ($ together with interest thereon from the date hereof until paid, at the rate of percent per annum, both principal and interest payable in lawful money of the United States of America at the , in the City of County, Michigan, upon presentation and surrender of this Note. This Note is one of a series of notes of like date and tenor, except as to maturity date and principal amount in denominations and maturing as follows: , provided that notes numbered and upwards are optional as to delivery and as to denomination, as provided in a Resolution of the Board of Commissioners of said County of Oakland, dated , 1974. This series of notes which shall not aggregate in excess of $16,000,000 is issued by said County of Oakland in accordance with the provisions of Act No. 202 of the Michigan Public Acts of 1943, as amended, in anticipation of the collection of delinquent taxes for the year 1973 paid or to be paid to the Oakland County Treasurer for deposit in the Oakland County Delinquent Tax Revolving Fund No. 46191. The proceeds of this series of notes will be used to make payment to local tax collectors for taxes returned to the County Treasurer as delin- quent on March 1, 1974. 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 1973 which were outstanding and uncollected on March 1, 1974, 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 payment of said principal and interest at maturity. The notes of this series shall be subject to redemption in inverse numerical order at par and accrued interest on the first day of any month prior to maturity 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. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be per- formed 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 and that the amount of said notes, together with all other indebtedness of said County, does not exceed any Constitu- tional or statutory limitation. IN WITNESS WHEREOF, the County of Oakland, Michigan, has caused this note to be signed and sealed in its name by the Chairman of the Oakland County Board of Commissioners and its County Clerk as of the 1st day of April, 1974. COUNTY OF OAKLAND By Chairman, Board of Commissioners By County Clerk [Seal) Moved by , Houghten supported by Patnales the resolution be adopted. AYES: Wilcox, Berman, Brotherton, Button, Douglas, Dunleavy, Gabler, Hobart, Hoot, Kasper, Lennon, Mathews, Moffitt, Montante, Nowak, Olson, Patnales, Pernick, Quinn, Richardson, Vogt, Walker. (22) 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 a true and complete copy of proceedings taken at a regular meeting. of the Board of Commissioners of said County held on the 14th day of February ,.1974, in- sofar as the same relate to the issuance of $16,000,000 Delinquent Tax Revolving Fund Notes, Series 1974, the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official , signature this 14th day of February , A.D. 1974. s Clerk of Oakla d County