HomeMy WebLinkAboutResolutions - 2001.04.05 - 26289MISCELLANEOUS RESOLUTION #01104 April 5, 2001
BY: Finance Committee, Sue Ann Douglas, Chairperson
IN RE: DEPARTMENT OF MANAGEMENT & BUDGET / EQUALIZATION DIVISION - UTILITY
DEFENSE FUND SUPPLEMENTAL APPROPRIATION
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Board of Commissioners, by Misc. Resolution #00198 dated
August 10, 2000, authorized the establishment of the Intergovernmental
Utility Defense Fund (#256600) for the purposes of assembling funds from
various governmental units throughout the State to challenge the State Tax
Commission's November, 1999 action to adopt revised personal property
multipliers for Electric Transmission and Distribution Property and Gas
Distribution Property; 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 four-year refund of over $32 million; and
WHEREAS litigation began in December, 2000 and is continuing, as of
this date, before the State Tax Tribunal; and
WHEREAS legal and other related expenses, e.g., expert witnesses,
amount to $643,761 thus far with contributions from the following
governmental units:
Oakland County $201,000
Wayne County 100,000
City of Detroit 100,000
Macomb County 50,000
All Other 192,761
Total $643,761; and
WHEREAS total costs of litigation are estimated to be $1,338,000 with
costs distributed as follows:
Total Costs Remaining Balance
Oakland County $ 268,000 $ 67,000
Wayne County 268,000 168,000
City of Detroit 268,000 168,000
Macomb County 134,000 84,000
All Other 400,000 207,239
Total $ 1,338,000 $ 694,239; and
WHEREAS Oakland County's recommended additional appropriation of
$67,000 is available in the General Fund Designated Fund Balance for Tax
Tribunal Appeals (Account # 9407-74000).
FINANCE COMMITTEE VOTE
Motion carried unanimously on a roll call vote with Moss and Palmer absent.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes an appropriation of $67,000 from the General Fund
Designated Fund Balance for Tax Tribunal Appeals (Account # 9407-74000) to
the Intergovernmental Utility Defense Fund for purposes of proceeding with
litigation against the State Tax Commission challenging the revised personal
property multipliers for Electric Transmission and Distribution Property and
Gas Distribution Property.
BE IT FURTHER RESOLVED that the FY2001 Budget be amended as follows:
GENERAL FUND
Revenue:
90-190000-14000-1582 Prior Year Balance $ 67,000
Expenditures:
90-210000-21000-9099 Tax Tribunal Appeals $ 67,000
INTERGOVERNMENTAL DEFENSE FUND (Total Revised Budget)
Revenue: (Contributions: 256601-50001-1604)
Oakland County $ 268,000
Wayne County 268,000
City of Detroit 268,000
Macomb County 134,000
All Other 400,000
Total $1,338,000
Expenditures: (Non-Dept.)
256601-50001-3348 Professional Services $1,338,000
Total $1,338,000
Chairperson, on behalf of the Finance Committee, I move adoption of the
foregoing resolution.
FIN CE COMMITTEE
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Resolution #01104 April 5, 2001
Moved by Douglas supported by Coleman the resolution be adopted.
AYES: Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway,
Garfield, Gregory, Law, McPherson, Melton, Millard, Moss, Obrecht, Palmer,
Patterson, Sever, Suarez, Taub, Webster, Amos, Appel, Brian, Buckley. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was
adopted.
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 April 5, 2001 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and a fixed the seal of the
illt County of Oakland at Pontiac, Michigan this S'h dm? of ril, 2001
G. William Caddell, County Clerk