HomeMy WebLinkAboutResolutions - 2001.09.20 - 26652MISCELLANEOUS RESOLUTION #0248 September 20, 2001
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: BOARD OF COMMISSIONERS - 2001 COUNTY GENERAL FUND
PROPERTY TAX AND PARKS & RECREATION TAX RATES
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County has a fixed millage rate of 5.26 mills
(voter approved 8/8/78) and a voter approved (8/7/90 for ten-years)
.2500 mill for Parks & Recreation; and
WHEREAS the Huron-Clinton Metro Parks Authority has requested
the County to apportion a .25 mill property tax rate; and
WHEREAS Michigan Law (MCL 211.34d(16) permanently reduced the
County's Maximum Allowable Tax Rate to the 2001 "Headlee" rollback
( Article 9, Section 31 of the Michigan Constitution) tax rate of
4.3259 mills, a Parks & Recreation maximum allowable tax rate of
.2352 mill and a Huron-Clinton Authority maximum allowable tax rate
of .2186 mill; and
WHEREAS Public Act 42 of 1995, "Truth in Budgeting" Act,
allows the County Board of Commissioners to hold a single public
hearing as a prerequisite to both approval of the Property Tax Levy
and Budget adoption, if the recommended property tax rate necessary
to support the ensuing year's operating budget is included in the
General Appropriations Act; and
WHEREAS the Board of Commissioners, upon the recommendation of
the County Executive, adopted Misc. Resolution #98217 establishing
a 1998 County Property Tax rate of 4.1900 mills, .273 mills less
than the Maximum Allowable Tax Levy as constrained by State law,
equivalent to a total tax reduction of $10.7 million in 1998, $9.6
million in 1999, and $7.9 million in 2000, respectively, for a
three-year total taxpayer savings of $28.2 million; and
WHEREAS the County Executive recommends that the County 2001
tax rate be set at 4.1900 mills, same as the 1998, 1999 and 2000
millage rates, .1359 mill below the Maximum Allowable Tax Levy as
constrained by State law, equivalent to a tax reduction of $6.5
million, without jeopardizing the County's ability to deliver
quality public services; and
WHEREAS the Finance Committee recommends that the 2001 County
General Fund Property Tax rate be set at 4.1900 mills, .1359 mill
below the maximum allowable tax rate; the Oakland County Parks &
Recreation Tax rate be set at .2352 mill, the maximum allowable tax
rate; and the Huron-Clinton Metro Park Authority Tax rate be set at
.2186 mill, the maximum allowable tax rate; and
WHEREAS $199,681,698 is the estimated amount of the FY2002
County General Fund Budget to be raised by taxation based on the
2001 Taxable Value of all property located in Oakland County
($47,656,729,878) at the recommended rate of 4.1900 mills, together
with the voted .2352 mill for Parks & Recreation of $11,208,863 and
the .2186 mill for the Huron-Clinton Authority of $10,417,761.
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Friedman Appel
absent.
4.1900 Mills .2352 Mill .2186 Mill
NOW THEREFORE BE IT RESOLVED that each Supervisor of the
various townships and Assessing Officers of the several cities of
Oakland County are authorized and directed to spread on their
respective township or city tax rolls for the year 2001 the
following tax rates to be applied to the 2001 Taxable Value of all
property located within their respective jurisdictions:
2001 County Voted for Huron-Clinton
General Property Tax Levy Parks & Recreation Park Authority
Mr. Chairperson, on behalf of the Finance Committee, I move
adoption of the foregoing resolution.
FINANCE COMMITTEE
'COAKIAND r-
- _ - .....--... ......
COUNTY MICHIGAN
DEPARTMENT OF MANAGEMENT AND BUDGET Jeffrey C. Pardee, Director
Laurie Van Pelt. Deputy Director -
September 13, 2001
To: Sue Ann Douglas, Chairperson
Board of Commissioners Finance Committee
Re: Recommended Oakland County 2001 Ad Valorem Property Tax Rate
The Oakland County 2000 Ad Valorem Property Tax Rate of 4.1900 mills is included in
the County Executive's FY2002 - 2003 Biennial Budget Recommendation to support County
operations.
The Board of Commissioners, upon the recommendation of the County Executive,
adopted Misc. Resolution #98217 establishing a 1998 County Property Tax rate of 4.1900 mills,
.273 mills less than the Maximum Allowable Tax Levy as constrained by State law, equivalent to
a total tax reduction of $10.7 million in 1998, $9.6 million in 1999, and $7.9 million in 2000,
respectively, for a three-year total taxpayer savings of $28.2 million. The County Executive
recommends that the County 2001 tax rate be set at 4.1900 mills, same as the 1998, 1999 and
2000 millage rates, .1359 mill below the Maximum Allowable Tax Levy as constrained by State
law, equivalent to a tax reduction of $6.5 million, without jeopardizing the County's ability to
deliver quality public services. If the Board of Commissioners adopts the foregoing
recommendation, Oakland County, at 4.19 mills, will continue to have the second lowest
operating millage tax rate of the 83 counties in the State of Michigan.
The tax rate computations required by the Headlee constitutional tax limitation
amendment, "Truth in Equalization" Act, "Truth in Taxation" Act, and "Truth in Budgeting" Act
are enclosed. In compliance with the "Truth in Taxation" Act, the Board of Commissioners may
levy a millage rate up to the Adjusted Base Tax Rate of 3.9341 mills without holding a Public
Hearing. The Board has the further discretion of levying up to 4.3259 mills, after holding a
Public Hearing and adopting a separate resolution specifying the "Increased Tax Rate." The
Board shall not levy a tax rate in excess of the Allowable Tax Levy of 4.3259 mills without a
referendum.
L. BROOKS PATTER,......, - _ . _ _
EXECUTIVE OFFICE BUILDING 34 EAST • 1200 N TELEGRAPH RD DEPT 409 • PONTIAC MI 48341-0409 • (248) 858-0487 • FAX (248) 858-9172
Public Act 42 of 1995, however, simplifies the public hearing process by allowing local
units of government to combine the required public hearings for the Property Tax Levy with that
required for Budget Adoption provided the tax rates necessary to support the budget are included
in the General Appropriations Act in compliance with the "Truth in Budgeting" Act, Public Act
41 of 1995. Therefore, the proposed resolution adopting the 2001 Property Tax Levy also
amends the 2002 General Appropriations Act to incorporate the tax rate and related revenue
necessary to support the 2002 General Fund/General Purpose Operating Budget.
If you have any questions or need for further information, please contact my office.
Respectfully,
Jeffrey C. Pardee, C.P.F.O.
Director, Dept. of Management & Budget
OAKLAND COUNTY, MICHIGAN
2002 BUDGET
2001 TAX RATE COMPUTATION
The property tax rate computation and setting of the County's Ad
Valorem Property Tax Rate are impacted by several State statutes,
including:
- The Headlee constitutional tax limitation amendment,
adding section 211.34d of the Michigan Compiled Laws,
subsequently amended by PA 539 of 1982,
- The "Truth in Equalization" Act, Public Act 213 of 1981
amending section 211.34 of the Michigan Compiled Laws,
- The "Truth in Taxation" Act, Public Act 5 of 1982, adding
section 211.24e of the Michigan Compiled Laws, subse-
quently amended by PA 2 of 1986 (Convention Facility Tax)
and PA 264 of 1987 (Cigarette Tax)
- Public Hearing Requirements for Local Units of Govern-
ment. Public Acts 40, 41 and 42 of 1995 set forth the
public hearing requirements for local units of government
regarding budget adoption and property taxation to
support budget appropriations.
A capsule statement of the purpose of each statute as well as the
computation of their respective rollback fractions are provided in
attached Schedules I, II, III and IV. Prior to 1994, the Headlee
and "Truth in Equalization" rollback were compound reductions based
on the County's maximum authorized operating levy of 5.26 mills.
Starting in 1995, the COMPOUND MILLAGE REDUCTION FRACTION (2IRF) is
no longer required to be calculated. This is true because MCL
211.34d(16) states that, starting in 1994, the "Headlee" millage
reduction PERMANENTLY reduced the maximum rate(s) authorized by law
or charter. Starting in 1995, the current Millage Reduction
Fraction (MRF) is all that is required.
Headlee Rollback
Maximum Authorized Levy
2001 Millage Reduction Fraction
Headlee Authorized Levy
4.3688 mills
0.9902
4.3259 mills
Truth in Equalization Rollback
Headlee Authorized Levy
2001 Sec. 34 Rollback Fraction
Allowable Tax Levy
4.3259 mills
1.0000
4.3259 mills
1
Truth in Taxation Rollback
The Truth in Taxation Base Tax Rate is computed against the millage
actually levied in the immediately concluding fiscal year.
2001 Actual Tax Rate 4.1900
2001 Base Tax Rate Fraction 0.9595
2001 Base Tax Rate 4.0203
2001 Adjusted Base Tax Rate 3.9341 (See Schedule IV)
The Board of Commissioners may levy a millage rate up to the
Adjusted Base Tax Rate of 3.9341 mills without holding a Public
Hearing. The Board has the further discretion of levying an
additional millage rate, up to 4.3259 mills, only after holding a
public hearing and adopting a separate resolution specifying the
Increased Tax Rate. (See Page 9 for optional Public Hearing
requirements under Public Act 42 of 1995.) The Board shall not levy
i tax rate in excess of the Allowable Tax Levy of 4.3259 mills
without a referendum.
Prepared by Department of Management & Budget September 5, 2001
2
SCHEDULE I
HEADLEE COMPUTATION
COMPOUNDED MILLAGE REDUCTION FRACTION
The Headlee Tax Limitation referendum amended Article IX of
Michigan Constitution by adding Section 31 which, in part,
specifies:
"If the assessed valuation of property as finally equalized,
excluding the value of new construction and improvements,
increases by a larger percentage than the increase in the
General Price Level from the previous year, the maximum
authorized rate applied thereto in each unit of Local
Government shall be reduced to yield the same gross revenue
from existing property, adjusted for changes in the General
Price Level, as could have been collected at the existing
authorized rate on the prior assessed value."
The tax limitation is computed by determining the Millage Reduction
Fraction* (MRF) for the current year. PA 415 of 1994 changed the
formula for calculating the MRF by substituting Taxable Value for
State Equalized Value (SEV). The Millage Reduction Fraction is not
permitted to exceed 1.0000. The new formula is computed as
follows:
(2000 Total Taxable Value-Losses) X Consumer Price Index
2001 Taxable Value - Additions = 2001 MRF
(44,370,760,909 - 783,500,856) x 1.032**
47,656,729,878 - 2,231,743,249 = 0.9902
2001 MILLAGE REDUCTION FRACTION = 0.9902**
PA 539 of 1982, effective March 30, 1983, changed the formula
for computing the MRF by subtracting losses from the numerator
rather than adding losses to the denominator. This makes the
computation consistent with the formula used for "Truth in
Taxation".
1999 increase of 3.2% in the Consumer Price Index as reported
by the United States Department of Labor.
*** PA 145 of 1993 - Section 34d(7) - The State School Finance Act
specifies that "For each year after 1993, a millage reduction
fraction shall not exceed 1.0000."
**
3
SCHEDULE II
"TRUTH IN EQUALIZATION"
2001 ROLLBACK FRACTION
Public Act 213 of 1981, "Truth in Equalization Act," which
applies to counties and other taxing authorities other than school
districts, amended Section 211.34 of the Compiled Laws of Michigan
so that the taxing jurisdiction would be restricted to an operating
levy based on that unit's authorized valuation total rather than a
full levy based on the State Equalized Valuation. The Act
restricts the County to a levy rate for operating purposes which
will yield no more revenue on the total State Equalized Valuation
(S.E.V.) of the County than the maximum authorized millage rate
would have produced if levied on the total County Equalized
Valuation (C.E.V.). There is no provision for removal of the
"Truth in Equalization" rollback other than by placing a valuation
on County property equal to the State equalized level. Starting in
1995, the language of MCL 211.34 results in a different Rollback
.Fraction because taxes will be levied against Taxable Value, not
SEV. The following is the formula for calculating the Truth in
County Equalization Rollback starting in 1995.
Total Taxable Value Based on CTV For All Classes
Total Taxable Value Based on STV For All Classes = 211.34 Rollback
47,656,729,878
47,656,729,878 = 1.0000
2001 Sec. 34 Rollback Fraction = 1.0000
4
SCHEDULE III
"TRUTH IN TAXATION"
BASE TAX RATE FRACTION
Public Act 5 of 1982 added section 211.24e to the Compiled
Laws of Michigan which requires that any local unit of government
which levied more than one mill in 2000 shall either reduce its
2001 levy rate to compensate for an increased tax base or advertise
its intention to increase property taxes and hold a public hearing
to allow for taxpayer intervention. No sooner than seven days
after the public hearing, the governing body may then increase
taxes by a vote of its members, provided that in no case can the
levy rate exceed the allowable rate which results from the
reduction required by the "Truth in Equalization" Act, Sec. 211.34,
and the Headlee Amendment, Sec. 211.34d. It is important to note
that the Base Tax Rate that results from application of the "Truth
in Taxation" Act is based on the rate actually levied in the
concluding fiscal year whereas the Headlee and "Truth in Assessing"
rollbacks are based on maximum authorized operating rates regard-
less of the rate which was actually levied in the preceding year.
The primary change in the formula beginning in 1995, due to
implementation of Proposal A, is the incorporation of Taxable Value
rather than SEV.
The 2001 section 211.24e Base Tax Rate Fraction is computed as
follows:
2000 Total Taxable Value - Losses
2001 Total Taxable Value - Additions = 2001 Base Tax Rate Fraction
44,370,760,909 - 783,500,856
47,656,729,878 - 2,231,743,249 = 0.9595
2001 Base Tax Rate Fraction = 0.9595
5
SCHEDULE IV
CONVENTION FACILITY ACTS:
Public Act 106 of 1985, the "State Convention Facility Development
Act", provides for a tax to be imposed on room accommodations in a
qualifying convention hotel located in Detroit, Wayne, Oakland and
Macomb Counties. The revenue generated under this act is dedicated
to cover the debt service on the Cobo Hall expansion. Public Act
107 of 1985, the "Tourism and Convention Facility Promotion Tax
Act", increases the tax on liquor sold to bar owners or retail
outlets for consumption off the premises. The revenue is placed
in the Convention Facility Development Fund, distribution is:
a. Cover any portion of the Cobo Hall debt service not
covered by the hotel tax.
b. The 80 counties outside the metro-Detroit area are then
reimbursed 100% of the liquor tax collected in their
counties.
c. Balance of the funds is split between the City of Detroit
and Wayne, Oakland and Macomb Counties in proportion to
the level of liquor taxes collected.
Under Act 106, counties share in the convention facility tax
revenues generated by imposition of Acts 106 and 107 when these
revenues exceed the debt service requirements for convention
facilities. As a result, Oakland County has received the following
amounts since 1988:
Year Amount
1988 $692,768
1989 $ 17,257
1990 $248,441
1991 $385,708
1992 $465,043
1993 $445,745
1994 $494,404
1995 $881,553
1996 $1,117,698
1997 $1,580,314
1998 $1,743,260
1999 $2,051,418
2000 $2,487,955
2001 $2,873,478
2002 $3,198,786 (Est.)
The 2001 actual revenue is $49,738 more than the original estimate
and, therefore, must be added to the 2002 estimate of $3,198,786
for purposes of computing the total ($3,248,524) convention
facility/liquor tax component of the 2001 truth-in-taxation
adjusted base tax rate .
Public Act 2 of 1986 amends the "Truth-in-Taxation" law to
require counties to reduce their base tax rate by the estimated
revenues (adjusted for the difference between prior year actual and
prior year estimate) distributed under Acts 106 and 107. Counties
may follow the truth-in-taxation public hearing process to use the
revenues for increased spending, however, 50% of the revenue not
6
used to reduce the millage rate is required to be used for
substance abuse programs.
CIGARETTE TAX ACTS:
Public Act 219 of 1987 increased the cigarette tax by four cents
($.04) per pack (2 mills per cigarette packaged 20 to a pack). The
proceeds are deposited in its entirety to the "Health and Safety
Fund" created by Public Act 264 of 1987. Of the total tax col-
lected:
a. 25% is distributed to the Department of Social Services
(now the Family Independence Agency)
b. The first $16,000,000 of the remaining 75% is distributed
to Wayne County.
c. The balance is divided among the remaining counties based
upon the most recent census.
The State Department of Treasury originally estimated that 82
Michigan counties, excluding Wayne County, would share 5.3 percent
of cigarette tax revenue (approximately $17,000,000) on a per
capita basis using the decennial federal census figures. As a
result, Oakland County has received the following amounts since
1989:
Year Amount
1989 $2,335,583
1990 $2,194,033
1991 $2,210,837
1992 $2,078,173
1993 $2,006,736
1994 $1,604,090
1995 $1,258,810
1996 $ 994,709
1997 $1,144,903
1998 $ 767,028
1999 $ 921,107
2000 $1,176,549
2001 $ 926,520
2002 $ 973,997 (Est.)
The 2001 actual revenue is $114,761 less than the original estimate
and, therefore, must be subtracted from the 2002 :estimate of
$973,997 for purposes of computing the total ($859,236) cigarette
tax component of the 2001 truth-in-taxation adjusted base tax rate.
Public Act 264, of 1987 requires a county to reduce its base tax
rate for truth-in-taxation purposes by an amount determined by
dividing the estimated cigarette tax revenue (adjusted for the
difference between prior year actual and prior year estimate) by
the state equalized value of the county. The cigarette tax
revenue, to the extent not used to reduce the county's millage
rate, must be used for the following purposes.
A. 11/17 of the distribution to the county health department
for public health prevention programs and services. This
distribution is in addition to and is not intended as a
7
replacement for any state or county payments to these
health departments.
B. 5/17 of the distribution shall be used only for the
operation, maintenance, or expansion of an existing
county jail facility or juvenile facility; for the
acquisition, construction, and equipping of a new jail
facility or juvenile facility; or for court operations.
C. 1/17 of the distribution is not restricted to specific
purposes and is to be included with other County revenues
budgeted by the Board of Commissioners.
Total 2001 Taxable Value
Unadjusted Base Tax Rate
Unadjusted Revenue Base
Less: Convention Facility Tax Revenue
Cigarette Tax Revenue
Adjusted Revenue Base
$47,656,729,878
4.0203 Mills
$ 191,594,351
3,248,524
859,236
$ 187,486,591
Adjusted Base Tax Rate = Adjusted Revenue Base
Total Taxable Value
= $ 187,486,591
$ 47,656,729,878
= 3.9341 Mills
8
SCHEDULE V
PUBLIC HEARING REQUIREMENTS FOR LOCAL UNITS OF GOVERNMENT
Public Act 40 of 1995 - Budget Hearings for Local Government
This Act amends the law that requires local governments to hold a
public hearing on their proposed budget and to give notice of the
hearing. The local government must give notice of the budget
hearing by publication in a newspaper of general circulation at
least six (6) days before the hearing. The notice shall include
the time and place of the hearing and state the place where a copy
of the budget is available for public inspection. Public Act 40
requires that the notice must also include the following statement
in its budget hearing notice, printed in 11-point boldface type:
"THE PROPERTY TAX MILLAGE RATE PROPOSED TO BE LEVIED TO
SUPPORT THE PROPOSED BUDGET WILL BE A SUBJECT OF THIS HEAR-
ING."
Public Act 41 of 1995 - Truth in Budgeting Act
The Uniform Budgeting Act has been amended, adding Section 16, to
require that the General Appropriations Act adopted by the
legislative body of a local unit of government must set forth the
total number of mills of ad valorem property taxes to be levied and
the purposes for which the millage is to be levied. This subsec-
tion shall be known as and may be cited as "THE TRUTH IN BUDGETING
ACT".
Public Act 42 of 1995 - Notice and Public Hearing Requirements
This Act specifies that if the taxing unit complies WITH SECTION 16
of the Uniform Budgeting Act, RA 2 of 1968, as amended by PA 41 of
1995, it need not comply with the notice and public hearing
requirements of the truth-in-taxation section of the General
Property Tax Laws and is exempt from holding a truth-in-taxation
public hearing.
9
Mr. Chairperson,
I move to set a Public Hearing on the 2002 Budget and General
Appropriations Act and the 2001 Tax Rates necessary to support the
2002 Budgets for Oakland County Government, Oakland County Parks &
Recreation, and the Huron/Clinton Metropolitan Park Authority for
Thursday, September 20, 2001 at 10:00 am in the Board of Commis-
sioners Auditorium and that the Board of Commissioners authorizes
publication of Notice of Public Hearing in a newspaper of general
circulation.
10
L-4029 ORIGINAL TO: County Clerk(s)
COPY TO: Equalization Department(s)
COPY TO: Each township or city clerk
Michigan Depadment of Treasury. SIC
614 (3-99)
This form is issued under authority of MCI Sections 211.24e.
211.34 and 211.34d. Fling is mandatory; Penalty applies.
Prepared by
Oakland County Equalization
Telephone Number
(248) 858-0752
Title of Preparer
Tax Standards Specialist
Date
2001 TAX RATE REQUEST (This form must be completed and submitted on or before October 1.2001)
MILLAGE REQUEST REPORT TO COUNTY BOARD OF COMMISSIONERS
County 2001 Taxable Value of ALL Properties in the Unit as of 5-1-01
OAKLAND 47,656,729,878
Local Government Unit For LOCAL School Districts: 2001 Taxable Value of Non-Homestead and
COUNTY OF OAKLAND Non-Qualified Agricultural Propedies if s millage is Levied Against Them.
You must complete this form for each unit of government for which a property tax is levied. Penalty for non-filing is provided under MCL Sec 211.119.
The following tax rates have been authorized for levy on the 2001 tax roll.
PLEASE READ THE
INSTRUCTIONS ON
THE REVERSE SIDE
CAREFULLY
(1) (2) (3) (4) (8)** (6) (7) (8) (9) (10) (11) (12)
2000 2001 2001 Millage Millage
Millage Millage Rate Current Year Millage Rate Sec 211.34 Maximun Requested Requested Expiration
Authorized Permanently Millage Permanently Millage Allowable to be to be Date of
Purpose of Date of by Election, Reduced by Reduction Reduced by Rollback Millage Levied Levied Millage
Source Millage Election Charter, etc. MCL 211.34d Fraction MCL 211.34d Fraction Levy* July 1 Dec. 1 Authorized
Voted Operating 08/08/78 5.2600 4.3688 0.9902 4.3259 1.0000 4.3259
Voted Parks & Rec 08/07/90 0.2500 0.2376 0.9902 0.2352 1.0000 0.2352
As the representatives for the local government unit named above, we certify that these requested tax levy rates have been reduced, if necessary to comply with the
state constitution (Article 9, Section 31), and that the requested levy rates have also been reduced, if necessary, to comply with MCL Sections 211.24e and 211.34. and,
for LOCAL school districts which levy a Supplemental (Hold Harmless) Millage, 380.1211(3).
O Clerk
O Secretary
O Chairperson
o President
Signature Type Name Date
Signature Type Name Date
* Under Truth in Taxation, MCL Section 211.24e, the governing body may decide to levy a rate which will not exceed the maximum authorized rate allowed in column 9.
The requirements of MCL 211.24e must be met prior to levying an operating levy which is larger than the base tax rate but not larger than the rate in column 9.
" IMPORTANT: See instructions on the reverse side regarding where to find the millage rate used in column (5).
TAXING AUTHORITY
Oakland County
Oakland County
Parks & Recreation
FORM L-4028 COUNTY AND VILLAGES
2001 MILLAGE REDUCTION FRACTION COMPUTATIONS
VALUATION WITHIN OAKLAND COUNTY
2000
TAXABLE
44,370,760,909
44,370,760,909
2001
TAXABLE
47,656,729,878
47,656,729,878
LOSSES ADDITIONS
TAXABLE TAXABLE
2001 2001 2001
M.R.F. B.T.R.F. T.I.A.
783,500,856 2,231,743,249 0.9902 0.9595 1.0000
783,500,856 2,231,743,249 0.9902 0.9595 1.0000
Huron-Clinton
Metro Authority
44,370,760,909 47,656,729,878 783,500,856 2,231,743,249 IC* IC* IC*
VILLAGE
Beverly Hills
Bingham Farms
Franklin
Holly
Lake Orion
Leonard
Milford
Ortonville
Oxford
Wolverine Lake
424,054,094 450,486,204
165,729,210 175,783,100
197,724,630 213,169,920
101,033,490 106,543,710
80,340,780 88,255,510
10,837,310 11,125,650
177,908,695 193,025,425
31,894,900 34,418,610
104,657,782 110,717,451
117,006,650 124,179,040
1,259,430
3,463,752
1,625,340
950,950
682,433
174,240
1,243,910
93,380
2,816,450
143,610
4,236,900 0.9778 0.9474 1.0000
8,390,390 1.0000 0.9694 1.0000
8,164,830 0.9872 0.9566 1.0000
3,096,970 0.9984 0.9675 1.0000
5,120,590 0.9888 0.9582 1.0000
138,270 1.0000 0.9705 1.0000
7,316,870 0.9817 0.9513 1.0000
881,142 0.9786 0.9482 1.0000
4,233,520 0.9870 0.9564 1.0000
1,687,950 0.9846 0.9541 1.0000
Revised 6/25/01 City of Ferndale
9/4/01 Page 1 of 1
855 (Rey. 3-99), Formerly 1.4209
STATE TAX COMMISSION
P.O. BOX 30471
LANSING. MICHIGAN 48909-7971
Phone: (517) 373-0500
FAX: (517) 241-2621
enwareasury.state.mLus
COMMISSION MEMBERS rga,„
Mark A. HIlpart, Chairpetson
,,'Obikeelery F. Holt
twee obert Lupi
, r
STATE 'OF CH I GAN
JOHN ENGLE-R. Governor -
DEPARTMENT OF TREASURY Dennis W. Platte, Secretary
MARK A. MURRAY. State Treasurer .4 2000 E,pAKLAAir.„
• w,JALsz.A.T,`",1/4-0t/iv-ry
DivisioN
BULLETIN NO. 13
INFLATION RATE
OCTOBER 18, 2000
DATE: October 18, 2000
TO: Assessors
Equalization Directors
FROM: State Tax Commission
RE: INFLATION RATE FOR USE IN THE 2001 CAPPED VALUE FORMULA
AND THE 2001 "HEADLEE" MILLAGE REDUCTION FRACTION
(MRF) FORMULA
A) Inflation Rate Used in the 2001 Capped Value Formula
The inflation rate, expressed as a multiplier, to be used in the 2001 Capped Value
Formula is 1.032. (The inflation rate for 2000 calculations was 1.019)
The 2001 Capped Value Formula is as follows:
2001 CAPPED VALUE = (2000 Taxable Value — LOSSES) X 1.032 +
ADDITIONS
The formula above does not include 1.05 because the inflation rate of 1.032 is
lower than 1.05.
B)
Inflation Rate Used in 2001 "Headlee" Calculations
The inflation multiplier of 1.032 shall ALSO be used in the calculation of the
2001 "Headlee" Millage Reduction Fraction required by Michigan Compiled Law
(MCL) 211.34d.
The formula for calculating the 2001 "Headlee" Millage Reduction Fraction
(MRF) is as follows:
2001 MRF = (2000 Taxable Value — LOSSES) X 1.032
2001 Taxable Value - ADDITIONS
Post-ir Fax Note 7671 Date ji....,71/..4 / Iptegfes• eg
To 7741 ,ts0,14,6 From
CoJDept. Co.
Phone #(/) irs-e-ole 7 'Phm° tr.ro) 3 73-074 97
Fax * Cgvd7) 54s-44 _.,:R/ sip Fax V
3500 (Rev. 401)
W
'ir STATE OF MICHIGAN
John Engler, Governor
DEPARTMENT OF TREASURY
Douglas B. Roberts, State Treasurer
i rct.1-10tJt< 1-..1K H f-ax:Dir-13,55-3-t* Hug 14 iUUi 15:5i P. Ca
MICHIGAN
PEPAINOT t)
TREASURY
August 14, 2001
Mr. Frank Millard, Jr.
Chairperson
Oakland County Board of Commissioners
5728 Warbler
Clarkston, MI 48346
Dear Mr. Millard, Jr.:
TRI-COUNTY CONVENTION FACILITIES TAX/4% STATE-WIDE LIQUOR TAX
Distribution for 2002
Counties share in the tri-county convention facilities tax levied under Act 106 of 1985 and the 4 percent
liquor tax levied under Public Act 107 of 1985 when those revenues exceed the debt service
requirements for convention facilities. Public Act 2 of 1986 requires the State Treasurer to annually
certify an estimate of revenues to be received by counties under Act 106. The estimated amount of the
convention facility/liquor tax distribution to Oakland County from FY 2000-01 collections
is $3,198,786. The actual distribution to counties will be made in early 2002.
Reduction in Base Tax Rate for 2001 Truth-In-Taxation Hearing Purposes
Counties are required to use the estimate to reduce their base tax rate for 2001 truth-in-taxation hearing
purposes under Public Act 2 of 1986. The law also requires that the estimate is to be adjusted by the
difference between the estimated and actual distribution for the prior year. The difference for Oakland
County between the actual last distribution and the Department of Treasury estimate of the last
distribution is $49,738. Therefore, the amount of the convention facility/liquor tax distribution that is
to be used to reduce the Oakland County base tax rate for 2001 truth-in-taxation hearing purposes
is $3,248,524.
CIGARETTE TAX, HEALTH AND SAFETY FUND ACT
Distribution for 2002
Counties share in the revenues from 5.3 percent of cigarette tax under Public Act 264 of 1987, the
Health and Safety Fund (HSF) Act. The estimated amount of the HSF Act distributions to Oakland
County in 2002 is $973,997.
fl.A. WC-MA."1 LAIN MU9 14 LUOi
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Page 2
August 14, 2001
Reduction in Base Tax Rate for 2001 Truth-in-Taxation Hearing Purposes
The estimated HSF distribution for 2002 is adjusted by the difference between the actual and estimated
distribution during 2000. This difference for Oakland County is -$114,761. Counties are required to
use this adjusted amount of $859,236 to further reduce their base tax rate for 2001 truth-in-taxation
hearing purposes, under Public Act 264.
Realty Michigan Fund
Article IX, Section 36 of the Michigan Constitution (Proposal A) earmarks 6 percent of tobacco taxes
for public health programs, in addition to the HSF revenue. Some county health departments will be
obtaining funds from this source, in addition to the HSF distribution estimated in this letter.
SUMMARY INFORMATION
The total amount from liquor and cigarette tax distributions that Oakland County must use to reduce
their base tax rate for 2001 truth-in-taxation bearing purposes is $4,107,760.
Counties may follow the truth-in-taxation hearing process to use the revenues for increased spending,
but 50 percent of the convention facility/liquor tax revenue not used to reduce their millage rate is
required by Public Act 2 to be distributed to the county's designated substance abuse coordinating
agency for substance abuse programs. All of the HSF Act revenues not used to reduce their millage rate
must be spent as specified in that act. A Property Tax Division bulletin which explains the required
calculations of Act 2 and Act 264 has been distributed to your county treasurer and is available upon
request.
Sincerely,
Howard Heideman
Director of Tax Policy Analysis
Office of Revenue and Tax Analysis
cc: County Treasurer
County Equalization Director
County Executive/Administrator/Controller/Coordinator
GARY C. BARTSCH, Director
JAMES J. BRESCIAMI, Deputy Director
DAVID L. WAHL, Controller
MICHAEL G. MAGEE, Secretary
HURON-CLINTON -
U6 2 9. 71‘7,11f Administrative Offices 0.. 1000 High Ridge Drive • P.O. Box 2001 • Brightori, micrugan 48116-8001
Telephone: (810) 227-2757 or 1-800-47-PARKS • Fax: (810) 227-8610
Web Site: http://www.metroparks.com • E-Mail: Mail@metroparks.com
METRUPGLITANI AUTHORITY .
August 15, 2001
COMMISSIONERS
ROBERT W. MARANS, Chairman
JOHN C. HERTEL, Vice Chairman
JAMES YOUNG, Treasurer
JACK BRANDENBURG
JAMES CLARKSON
WILLIAM E. KREGER
JAMES B. NICHOLSON
RE: 2001 Huron-Clinton Metropolitan Authority Tax Levy
As is our usual custom at this time of the year, we are advising of the
ad valorem tax for the Huron-Clinton Metropolitan Authority. The levying of
these taxes are required by State of Michigan Act 147 of the Public Acts of
1939 Section 7. This levy has been computed in accordance with the
provisions of Act 35 of the Public Acts of 1979 (Headlee Amendment) which
amended Section 211.34 (d) of the Compiled Laws of 1970. We are providing
your' County with Form L-4029 the Millage Tax Rate Request Report for the
County Board of Commissioners.
The Authority is a five-county (multi-District) taxing jurisdiction
and, as such, our Millage Reduction Factor (MRF) is calculated over the
entire five counties. For the 2001 levy the Authority is subject to a
Millage Reduction Fraction of .9928. This rate is then applied to our 2000
permanently reduced maximum millage of .2202 mills, yielding a 2001
permanently reduced millage rate of .2186. Accordingly, we are requesting
you to levy .2186 mills for Metropark development and operations. For your
information, this will produce a levy of $10,417,761.15 based on a final
2001 Taxable Value of $47,656,729,878.
If there are any communities in your county that prepare their own tax
bills, we kindly request that a copy of this L-4029 form be forwarded to
them. If you are unable to do this, please advise so we can contact those
communities directly.
Under the reimbursement provisions of the Single Business Tax Act,
$106,699.99 will be added, based on the 1975 exempt inventory valuation of
$477,191,347. In total, $10,524,461.14 will be due from Oakland County for
Authority operations.
We kindly ask that this matter be given the proper consideration at
your County Board of Commissioners apportionment meeting in October.
Thanking you in advance for your cooperation. Should there be any questions
or a need for additional information, please contact the undersigned.
Sincerely,
David L. Wahl, Controller
Enclosure
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INSTRUCTIONS FOR
2001 TAX RATE REQUEST
Millage Request Report to County Board of Commissioners
These instructions are provided under MCL Sections 211.24e (truth in taxation), 211.34 (truth in county equalization and truth in
assessing), 211.34d (Headlee), and 211.36 and 211.37 (apportionment).
Column 1: Source. Enter the source of each millage. For example, allocated millage, separate millage limitations voted, charter,
approved extra-voted millage, public act no., etc. Do not include taxes levied on the Industrial Facilities Tax Roll.
Column 2: Purpose of millage. Examples are: operating, debt service, special assessments, school enhancement millage, sinking
fund rnillage, etc. A local school district must separately list operating millages by whether they are levied against ALL PROPERTIES
in the school district or against the NON-HOMESTEAD AND NON-QUALIFIED AGRICULTURAL group of properties. (See State Tax
Commission Bulletin No. 5 of 2001 for more explanation.) A local school district may use the following abbreviations when completing
Column 2: "Operating ALL" and "Operating NON-HOME". "Operating ALL" is short for "Operating millage to be levied on ALL
PROPERTIES in the local school district" such as Supplemental (Hold Harmless) Millages and Building and Site Sinking Fund
Millages. "Operating NON-HOME" is short for 'Operating Millage to be levied on NON-HOMESTEAD AND .NON-QUALIFIED
AGRICULTURAL PROPERTIES in the local school district" such as the 18 mills in a districtwhich does not levya Supplemental (Hold
Harmless) Millage.
Column 3: Date of Election. Enter the month and year of the election for each millage authorized by direct voter approval.
Column 4: Millage Authorized. List the allocated rate, charter aggregate rate, extra-voted authorized before 1979. each separate
rate authorized by voters after 1978, debt service rate, etc. (This rate is the rate before any reductions.) •
Column 5: 2000 Millage Rate Permanently Reduced by MCL 211.34d ("Headlee") Rollback. Starting with taxes levied in 1994,
the "Headlee" rollback permanently reduces the maximum rate or rates authorized by law or charter. The 2000 permanently reduced
rate can be found in column 7 of the 2000 form L-4029. For operating millage approved by the voters after May 31, 2000, enter the
millage approved by the voters. For debt service or special assessments not subject to a millage reduction fraction, enter "NA"
signifying "not applicable".
Column 6: Current Year Millage Reduction Fraction. List the millage reduction fraction certified by the county treasurer for the
current year as calculated on 2001 Mil/age Reduction Fraction Calculations Worksheet, form L-4034. The millage reduction fraction
shall be rounded to four (4) decimal places. The current year millage reduction traction shall not exceed 1.0000 for 2001 and future
years. This prevents any increase or "roll up" of millage rates. Use 1.0000 for millages approved by the voters after May 31, 2001.
For debt service or special assessments not subject to a millage reduction fraction, enter 1.0000.
Column 7: 2001 Millage Rate Permanently Reduced by MCL 211.34d ("Headlee") Rollback. The number in column 7 is found
by multiplying column 5 by column 6 on this 2001 form L-4029. This rate must be rounded DOWN to 4 decimal places. (See STC
Bulletin No. 11 of 1999.) For debt service or special assessments not subject to a millage reduction fraction, enter "NA" signifying
"not applicable". -
Column 8: Section 211.34 Millage Rollback Fraction (Truth in Assessing or Truth in Equalization). List the millage rollback
fraction for 2001 for each millage which is an operating rate. Round this millage rollback fraction to 4 decimal places. Use 1.0000 for
school districts, for special assessments and for bonded debt retirement levies. For counties, villages and authorities, enter the Truth
in Equalization Rollback Fraction calulated on STC form L-4034 as TOTAL TAXABLE VALUE BASED ON CEV FOR ALL CLASSES/
TOTAL TAXABLE VALUE BASED ON SEV FOR ALL CLASSES. Use 1.0000 for an authority located in more than one county. For
further information, see State Tax Commission Bulletin No. 5 of 2001. For townships and cities, enter the Truth in Assessing Rollback
Fraction calculated on STC form L-4034 as TOTAL TAXABLE VALUE BASED ON ASSESSED VALUE FOR ALL CLASSESTTOTAL
TAXABLE VALUE BASED ON SEV FOR ALL CLASSES. The Section 211.34 Millage Rollback Fraction shall not exceed 1.0000.
Column 9: Maximum Allowable Millage Levy. Multiply column 7(2001 Millage Rate Permanently Reduced by MCL 211.34d) by
column 8 (Section 211.34 millage rollback fraction). Round the rate DOWN to 4 decimal places. (See STC Bulletin No. 11 of 1999.)
For debt service or special assessments not subject to a millage reduction fraction, enter millage from Column 4.
Column 10/Column 11: Millage Requested to be Levied. Enter the tax rate approved by the unit of local government provided
that the rate does not exceed the maximum allowable millage levy (column 9). A millage rate that exceeds the base tax rate (Truth
in Taxation) cannot be requested unless the requirements of MCL 211.24e have been met. For further information, see State.Tax
Commission Bulletin No. 5 of 2001. A LOCAL School District which levies a Supplemental (Hold Harmless) Millage shall not levy a
Supplemental Millage in excess of that allowed by MCL 380.1211(3).
Column 12: Expiration Date of Millage. Enter the month and year on which the millage will expire.
L. Brooks lytterson, County Executive Date
3 •
Resolution #01248 September 20, 2001
Moved by Douglas supported by Law the resolution be adopted.
AYES: Galloway, Garfield, Gregory, Law, McPherson, Melton, Millard,
Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos,
Appel, Brian, Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas.
(25)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
ITTEREE1-61"."---6----------------(5/2THE FOREGOING RESQ
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 September 20, 2001 with the original
record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the _seal o. thg_
County of Oakland at Pontiac, Michigan this 20,* da,469f Septemb,tr, 2001.
G. William Caddell, County Clerk