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MISCELLANEOUS RESOLUTION # 95001 February 9, 1995
By: Finance and Personnel Committee, John P. McCulloch,
Chairperson
RE: COUNTY TREASURER - PARAMETERS FOR ACCESSING FUNDING FROM
THE DELINQUENT TAX REVOLVING FUND
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, in accordance with the provisions of Public Act 206
of 1893 (as amended), the Oakland County Board of Commissioners
established a Delinquent Tax Revolving Fund (DTRF) to pay
local/County taxing units within the County their respective
shares of delinquent ad valorem real property taxes, in
ani-L7ipation of the collection of those taxes by the County
Treasurer, and
Whereas, to ensure the functional intent and operational
success of the DTRF, the Oakland County General Appropriations
Act should be amended to incorporate the following parameters for
accessing funds from the Delinquent Tax Revolving Fund.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board
of Commissioners authorizes the following amendments to the 1995
General Appropriations Act:
1) The Delinquent Tax Revolving Fund (DTRF) was
established in accordance with the provisions of Public
Act 206 of 1893 (as amended) for the purpose of paying
local taxing units within the County their respective
shares of delinquent ad valorem real property taxes, in
antinipation of the collection of those taxes by the
County Treasurer. This policy statement, which
encompasses the precept of self-funding, ensures that
utilization of unrestricted DTRF funds does not impair
the functional intent or operational success of the
DTRF as originally established.
2) To that end, at no time shall funds be diverted from
the DTRF that would cause the unrestricted balance to
fall below a level that would assure prompt payment of
all current and future outstanding General Obligation
Limited Tax Notes, as well as assure the continued
operation of the DTRF as specified in the preceding
paragraph.
3) Penalties and investment interest generated by the DTRF
may be transferred, in whole or in part, to the General
Fund of the County upon majority vote of the Board of
Commissioners so long as such transfer(s) meets the
provisions of paragraph #2 above.
Chairperson, on behalf of the Finance and Personnel Committee, I
move adoption of the foregoing resolutiqn
dr) '
FINANCE/AND PERSONNEL COMMITTEE
4) Any and all appropriations from unrestricted DTRF
funds, excepting penalties and investment interest,
shall be limited to one-time expenditures, as opposed
to recurring operating expenses.
5) Unless otherwise specified, appropriations from the
DTRF shall be considered long- or short-term advances
(with specific timeframes detailed in the authorizing
resolution), to be repaid with interest as specified
below.
6) Any appropriations from unrestricted DTRF funds,
excepting penalties and investment interest, not
considered advances to be repaid within a time certain
shall require a two-thirds majority vote of the Board
of Commissioners.
7) All appropriations from unrestricted DTRF funds
considered to be advances to be repaid within a time
certain shall require a majority vote of the Board of
Commissioners.
8) Terms and conditions of any and all advances from the
DTRF shall be specified in the authorizing resolution,
including interest obligations detailed as follows:
a. Interest on each payment will be based on the
average monthly rate paid during the term of the
agreement by the agent of the DTRF for that year's
outstanding borrowing, or
b. In the event no borrowing occurs for the DTRF,
principal and interest payments will be made in
accordance with the previously established "Loan
of County Funds Policy" (Misc. Resolution 489276)
which requires Board approval of repayment terms
at an interest rate no less than the prevailing
six-month Treasury Bill rate and that such rates
shall be computed and compounded quarterly.
BE IT FURTHER RESOLVED that all requests for appropriations from
unrestricted DTRF funds shall be submitted to the County
Treasurer for review prior to Board approval of such
appropriations.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 9th day of eruaiw.....224
4,
Allen, County Clerk
Resolution #35001 February 9, 1995
Moved by McCulloch supported by Schmid the resolution be adopted.
Discussion followed.
AYES: Crake, Devine, Dingeldey, Douglas, Garfield, Huntoon, Jensen,
Johnson, Law, McCulloch, Moffitt, Obrecht, Palmer, Powers, Schmid, Taub, Wolf,
Amos. (18)
NAYS: Holbert, Jacobs, Kaezmar, Kingzett, McPherson, Quarles. (6)
A sufficient majority having voted therefor, the resolution was adopted.
1 HEREB PPRC" "iLUTION
2-1/) /55 —
L. Brooks Patt on. County Executive Date
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Alien, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on February 9, 1995 with the original
record thereof now remaining in my office.