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HomeMy WebLinkAboutResolutions - 1995.02.09 - 24415•. 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.