HomeMy WebLinkAboutResolutions - 2000.08.10 - 25930MISCELLANEOUS RESOLUTION #00198 August 10, 2000
BY: Finance Committee, Sue Ann Douglas, Chairperson
IN RE: DEPARTMENT OF MANAGEMENT & BUDGET - ESTABLISHMENT OF
INTERGOVERNMENTAL UTILITY DEFENSE FUND
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Oakland County, in conjunction with Wayne County, Macomb
County, Kent County, Cities of Detroit and Dearborn, the Michigan
Municipal League, the Michigan Townships Association, the Michigan
Association of Counties, and many others, are proceeding with a lawsuit
challenging the personal property multipliers for Electric Transmission
and Distribution Property and Gas Distribution Property that were
adopted by the State Tax Commission on November 23, 1999; and
WHEREAS the primary issue being contested is whether utility
property should be valued on the basis of cost to acquire the property,
often decades old, or should the value be based on current cost that
represents current market value, similar to the method of valuing
residential, commercial and industrial properties; and
WHEREAS the financial consequences to Oakland County, should the
State Tax Commission prevail, would be an estimated 28-30% revenue loss
to the public utility portion of the tax base, equivalent to
approximately $755,000 annually, with a potential immediate tax refund
of over $3 million should the Tax Tribunal rule in favor of the
utility companies regarding four years' worth of appeals currently
outstanding, and
WHEREAS cities, villages and townships and other taxing units
(Community College, Intermediate School District, Parks) throughout
Oakland County could collectively suffer an annual revenue loss of over
$8 million with a potential three-year refund of over $32 million; and
WHEREAS communities on a statewide basis could be penalized
approximately $1 billion; and
WHEREAS, because Oakland County is the lead county in this case,
there is a need to establish an Intergovernmental Utility Defense Fund
to provide a coordinated financial effort in pursuit of successful
litigation; and
WHEREAS over $200,000 has already been contributed by
governmental jurisdictions and associations statewide, with additional
commitments from the Counties of Wayne and Macomb, as well as the City
of Detroit; and
WHEREAS Oakland County's recommended contribution of $101,000 is
available in the Professional Services Line-Item (3348) of the
Equalization Division FY2000 Amended Budget (12-240000-44100); and
WHEREAS Misc. Resolution #8082, adopted July 21, 1977, requires
" that outside legal counsel shall be employed only through the Office
of Civil Counsel and approved by a majority vote of the members of the
Board of Commissioners;" and
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Millard absent.
WHEREAS the firm of Reed, Stover & O'Connor, P.C., Attorneys At
Law, (located in Kalamazoo, MI) is recommended as legal counsel due to
their expertise in the specialty area of tax law; and
WHEREAS the County Executive recommends approval of this
resolution based on the statewide ramifications hanging in the balance.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes the establishment of the Intergovernmental
Utility Defense Fund (#256600) with the following budget:
Revenue:
Contributions (256601-50001-1604): Amount
Oakland County $101,000
Wayne County 100,000
City of Detroit 100,000
Macomb County 50,000
All other 200,000
Total $551,000
Non-Dept. Expenditures (256602-50001):
Professional Services (3348) $301,000
Contingency (2564) 250,000
Total $551,000
BE IT FURTHER RESOLVED that the Oakland County contribution of
$101,000 be derived from the Professional Services Line-Item (3348) of
the Equalization Division FY2000 Amended Budget (12-240000-44100).
BE IT FURTHER RESOLVED that the Board of Commissioners approves
the selection of the firm of Reed, Stover & O'Connor, P.C., Attorneys
At Law, as legal counsel for this case.
Chairperson, on behalf of the Finance Committee, I move adoption
of the foregoing resolution.
FINANCE COMMITTEE
Resolution #00198 August 10, 2000
Moved by Douglas supported by Coleman the resolution be adopted.
AYES: Colasanti, Coleman, Dingeldey, Douglas, Galloway, Gregory,
Jensen, Law, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer,
Patterson, Sever, Suarez, Taub, Amos, Appel, Buckley, Causey-Mitchell. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution
was adopted.
E FOREGOING RESOLUTIC)!
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 August 10, 2000 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 10th day of August, 2000.
/ /
, .
. William Caddell, County ler