HomeMy WebLinkAboutResolutions - 2000.12.14 - 25964MISCELLANEOUS RESOLUTION #00321 December 14, 2000
BY: Finance Committee, Sue Ann Douglas, Chairperson
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET - FUNDING FOR UTILITY
MULTIPLIER LAWSUIT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Oakland Ccunty, 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 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 over $533,000 has already been contributed by
governmental jurisdictions and associations statewide and additional
funding is anticipated in the amount of $100,000 from Wayne County,
$50,000 from Macomb County, as well as $100,000 from the City of
Detroit; and
WHEREAS Oakland County's recommended additional contribution of
$100,000 be derived from the funds earmarked for Tax Tribunal Appeals
(9407-74000) as designated fund balance; and
WHEREAS Miscellaneous Resolution #00198 authorized the
establishment of the Intergovernmental Utility Defense Fund (IGUDF) in
order to provide a coordinated financial effort in pursuit of
successful litigation; and
WHEREAS Miscellaneous Resolution #00198 approved the firm of
Reed, Stover & O'Conner, P.C., Attorneys At Law, as legal counsel for
this case.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners amends the budget as follows:
GENERAL FUND
Revenue
90-190000-14000-1582 Prior Year Balance $100,000
Expenditures
90-210000-21000-9099 Tax Tribunal Appeals $100,000
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Palmer and Obrecht
absent.
INTERGOVERNMENTAL UTILITY DEFENSE FUND
Revenue:
Contributions (256601-50001-1604) Amount
Oakland County $100,000
Wayne County $100,000
City of Detroit $100,000
Macomb County $ 50,000
Prior Years Revenue $250,000
Total $600,000
Expenditures:
Non-Dept Expenditures (256601-50001) Amount
Professional Services (3348) $600,000
Total $600,000
BE IT FURTHER RESOLVED than an appropriation of $100,000 be made
from the designated fund balance of Tax Tribunal appeals (9407-74000)
to the Intergovernmental Utility Defense Fund.
BE IT FUTHER RESOLVED that the Oakland County Board of
Commissioners authorizes Reed, Stover & O'Connor to proceed with the
lawsuit.
Chairperson, on behalf of the Finance Committee, I move adoption
of the foregoing resolution.
FINANCE COMMITTEE
Resolution #00321 December 14, 2000
Moved by Taub supported by Law the resolutions on the Consent Agenda be
adopted, with the accompanying reports being accepted.
AYES: Buckley, Causey-Mitchell, Colasanti, Coleman, Dingeldey, Douglas,
Galloway, Gregory, Jensen, Law, McCulloch, McPherson, Melton, Millard,
Moffitt, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Amos. (22)
NAYS: None (0)
A sufficient majority having voted therefor, the resolutions on the
Consent Agenda were adopted, with accompanying reports accepted
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 December 14, 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 14t}y day, December, 2000.
G. William Caddell, County Clerk