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HomeMy WebLinkAboutResolutions - 2004.09.22 - 27723• MISCELLANEOUS RESOLUTION #04278 September 22, 2004 BY: Finance Committee, Chuck Moss, Chairperson IN RE: BOARD OF COMMISSIONERS - 2004 COUNTY GENERAL FUND PROPERTY TAX AND PARKS AND RECREATION TAX RATES To the Oakland County Board of Commissioners 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 (8/8/00 - Term 2002-2011) 0.2500 mill for Parks and Recreation; and WHEREAS the Huron-Clinton Metro Parks Authority has requested the County to apportion a 0.25 mill property tax rate; and WHEREAS Michigan Law (MCL 211.34d(16) permanently reduced the County's Maximum Allowable Tax Rate to the 2004 "Headlee" rollback (Article 9, Section 31 of the Michigan Constitution) tax rate of 4.2359 mills, a Parks and Recreation maximum allowable tax rate of 0.2422 mill and a Huron-Clinton Authority maximum allowable tax rate of 0.2154 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 Miscellaneous Resolution #98217 establishing a 1998 County Property Tax rate of 4.1900 mills, 0.273 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, the tax rate of 4.19, unchanged for tax years 1999 through 2003, has resulted in total tax reduction of $9.6 million in 1999, and $7.9 million in 2000, $6.5 million in 2001, $5.0 million in 2002 and $3.7 million in 2003 respectively, for a six-year total taxpayer savings of $43.4 million; and WHEREAS the County Executive recommends that the County 2004 tax rate be set at 4.1900 mills, the same since 1998, 0.0459 mill below the Maximum Allowable Tax Levy as constrained by State law, equivalent to a tax reduction of $2.6 million, without jeopardizing the County's ability to deliver quality public services; and WHEREAS the Finance Committee recommends that the 2004 County General Fund Property Tax rate be set at 4.1900 mills, 0.0459 mill below the maximum allowable tax rate; the Oakland County Parks and Recreation Tax rate be set at 0.2422 mill, the maximum allowable tax rate; and the Huron-Clinton Metro Park Authority Tax rate be set at 0.2154 mill, the maximum allowable tax rate; and WHEREAS $234,583,397 is the estimated amount of the Fiscal Year 2005 County General Fund Budget to be raised by taxation based on the 2004 Taxable Value of all property located in Oakland County ($55,986,490,872) at the recommended rate of 4.1900 mills, together with the voted 0.2422 mill for Parks and Recreation of $13,559,928 and the 0.2154 mill for the Huron-Clinton Authority of $12,059,490. 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 2004 the following tax rates to be applied to the 2004 Taxable Value of all property located within their respective jurisdictions: 2004 County Voted for Huron-Clinton General Property Tax Levy Parks & Recreation Park Authority 4.1900 Mills 0.2422 Mill 0.2154 Mill Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE NFL „a() 4'7 FINANCE COMMITTEE Motion carried unanimously on a roll call vote. OAKLAND COUNTY MICHIGAN DEPARTMENT OF MANAGEMENT AND BUDGET TM /1 0 L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE Laurie Van Pelt, Director Wm. Art Holdsworth, Deputy Director September 15, 2004 To: Chuck Moss, Chairperson Board of Commissioners Finance Committee Re: Recommended Oakland County 2004 Ad Valorem Property Tax Rate The Oakland County 2004 Ad Valorem Property Tax Rate of 4.1900 mills is included in the County Executive's FY2005 - 2006 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. The tax rate of 4.1900, unchanged for tax years 1999 through 2003, has resulted in total tax reductions of $9.6 million in 1999, $7.9 million in 2000, $6.5 million in 2001, $5.0 million in 2002 and $3.7 million in 2003 respectively, for a six- year total taxpayer savings of $43.4 million. The County Executive recommends that the County 2004 tax rate be set at 4.1900 mills, the same since 1998, 0.0459 mill below the Maximum Allowable Tax Levy as constrained by State law, equivalent to a tax reduction of $ 2.6 million, without jeopardizing the County's ability to deliver quality public services. If the Board of Commissioners adopts the foregoing recommendation, Oakland County, at 4.1900 mills, will have the third 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 4.0595 mills without holding a Public Hearing. The Board has the further discretion of levying up to 4.2359 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 4.2359 mills without a referendum. EXECUTIVE OFFICE BUILDING 34 EAST • 1200 N TELEGRAPH RD DEPT 409 • PONTIAC MI 48341-0409 • (248) 858-2163 • 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 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 2004 Property Tax Levy also amends the 2005 General Appropriations Act to incorporate the tax rate and related revenue necessary to support the 2005 General Fund/General Purpose Operating Budget. If you have any questions or need further information, please contact my office. Respectfully, .41 lia"N Laurie VanVan Pelt, Director Dept. of Management & Budget OAKLAND COUNTY, MICHIGAN 2005 BUDGET 2004 TAX RATE COMPUTATION Several State statutes impact the property tax rate computation and setting of the County's Ad Valorem Property Tax Rate, including: • The "Headlee" constitutional tax limitation amendment/P.A. 532 of 1978, adding section 211.34d of the Michigan Compiled Laws, subsequently amended. • The "Truth in Equalization" Act, P.A. 213 of 1981, amending section 211.34 of the Michigan Compiled Laws. • The "Truth in Taxation" Act, P.A. 5 of 1982, adding section 211.24e of the Michigan Compiled Laws, subsequently amended, which is further impacted by Convention Facility and Cigarette Tax Distributions. • P.A. 40, P.A. 41 and P.A. 42 all of 1995 which 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 any related rollback fractions are provided in the attached Schedules I, II, III, IV and V. Prior to 1994 "Headlee" and the "Truth in Equalization" rollbacks were compound reductions based on the County's maximum authorized operating levy of 5.26 mills. Since 1995 the calculation of the COMPOUND MILLAGE REDUCTION FRACTION (CMRF) has no longer been required. 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 the current Millage Reduction Fraction (MRF) is all that is required under that section. "Headlee" Rollback Millage Permanently Reduced 2004 Millage Reduction Fraction "Headlee" Authorized Levy "Truth in Equalization" Rollback "Headlee" Authorized Levy 2004 Sec. 211.34 Rollback Fraction Allowable Tax Levy 4.2602 mills 0.9943 4.2359 mills 4.2359 mills 1.0000 4.2359 mills "Truth in Taxation" Rollback The "Truth in Taxation" Base Tax Rate is computed against the millage actually levied in the immediately concluded fiscal year. 2003 Actual Tax Rate 4.1900 mills 2004 Base Tax Rate Fraction 0.9719 2004 Base Tax Rate 4.0722 mills 2004 Adjusted Base Tax Rate 4.0595 mills (See Schedule IV) The Board of Commissioners may levy a millage rate up to the Adjusted Base Tax Rate of 4.0595 mills without holding a Public Hearing. The Board has the further discretion of levying an additional millage rate, up to 4.2359 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 P.A. 42 of 1995). The Board shall not levy a tax rate in excess of the Allowable Tax Levy of 4.2359 mills without a referendum. SCHEDULE I "HEADLEE" COMPUTATION MILLAGE REDUCTION FRACTION (MRF) The "Headlee" Tax Limitation referendum amended Article IX of the 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. P.A. 415 of 1994 changed the formula for calculating the MRF by substituting Taxable Value (TV) for State Equalized Value (SEV). The Millage Reduction Fraction is not permitted to exceed 1.0000. The new formula is computed as follows: (2003 Total Taxable Value - Losses) X Inflation Rate (2004 Taxable Value Based on SEV- Additions) (53,179,886,010 - 867,721,296) X 1.023" (55,986,490,872 - 2,162,058,705) 2003 MILLAGE REDUCTION FRACTION = 2004 MRF = 0.9943 = 0.9934 *** • * - P.A. 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". • ** - 2002 increase of 1.5% in the Inflation Rate reported by the United States Department of Labor. • *** - P.A. 145 of 1993, amended Section 211.34d(7), specifying that "For each year after 1993, a millage reduction fraction shall not exceed 1.0000". 1 55,986,490,872 55,986,490,872 = 1.0000 SCHEDULE II "TRUTH IN EQUALIZATION" ROLLBACK FRACTION PA. 213 of 1981, the "Truth in Equalization" Act, which applies to counties, villages and other taxing authorities (other than Cities, Townships and School Districts) amended Section 211.34 of the Michigan Compiled Laws 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 (SEV) of the County than the maximum authorized millage rate would have produced if levied on the total County Equalized Valuation (CEV). 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 (TV) not State Equalized Value (SEV). The following is the formula for calculating the "Truth in Equalization" rollback starting in 1995: Total Taxable Value Based on CEV for All Classes Total Taxable Value Based on SEV for All Classes = 211.34 Rollback Fraction 2004 SEC. 211.34 ROLLBACK FRACTION = 1.0000 s SCHEDULE III "TRUTH IN TAXATION" BASE TAX RATE FRACTION (BTRF) PA. 5 of 1982, the "Truth in Taxation" Act, 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 2003 shall either reduce its 2004 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 more than ten (10) 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 "Headlee" Amendment (Section 211.34d) and the "Truth in Equalization" Act (Section 211.34). 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 Equalization" rollbacks are based on maximum authorized operating rates regardless of the rate which was actually levied in the preceding year. The primary change in the formula beginning in 1995, due to the implementation of "Proposal A", is the incorporation of Taxable Value (TV) rather than State Equalized Value (SEV). The 2004 Section 211.24e Base Tax Rate Fraction is computed as follows: (2003 Total Taxable Value - Losses) (2004 Total Taxable Value Based on SEV - Additions) = 2004 BTRF 53,179,886,010 - 867,721,296 55,986,490,872 - 2,162,058,705 2004 BASE TAX RATE FRACTION =0.9719 = 0.9719 SCHEDULE IV CONVENTION FACITIY AND CIGARETTE TAX ACTS CONVENTION FACILITY TAX: P.A. 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 Wayne, Oakland and Macomb Counties. P.A. 58 of 1998, the "Michigan Liquor Control Code", increases the tax on liquor sold to bar owners or retail outlets for consumption off the premises. The resultant revenues, placed in the Convention Facility Development Fund, are distributed to local governments for use as follows: • Acquiring, constructing, improving, enlarging, renewing, replacing or leasing a convention facility. • Repairing, furnishing and equipping the convention facility. • Refinancing an activity listed above. Counties share in the convention facility tax revenues generated by imposition of these acts when these revenues exceed the debt service requirements for convention facilities, as provided in P.A. 106 of 1985. 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 $ 1,580314 1998 $ 1,743,260 1999 $ 2,051,418 2000 $ 2,487,955 2001 $ 2,873,478 2002 $ 3,277,454 2003 $ 2,819,512 2004 $ 2,808,180 2005 $ 2,927,576 Est. The 2004 actual revenue is $ 61,247 less than the original estimate and therefore must be subtracted from the 2005 estimate of $ 2,927,576 for purposes of computing the total ($ 2,866,328) Convention Facility/Liquor Tax component of the 2004 "Truth in ir1i,c,tpd hip. 1 0 P.A. 2 of 1986 amends the "Truth in Taxation" law to require counties reduce their base tax rate by the estimated revenues (adjusted for the difference between prior year estimate and actual) distributed under P.A. 106 of 1985. Counties may follow the "Truth in Taxation" Public Hearing process to use the revenues for increased spending, however, 50% of the revenue not used to reduce the millage rate is required to be used for substance abuse programs. CIGARETTE TAX: P.A. 327 of 1993, the "Tobacco Products Tax Act", provides for the levy of taxes on the sale of tobacco products. The resultant revenue, placed in the Health and Safety Fund, is distributed as follows: • 25% is distributed for indigent volume adjusters for hospitals within the Medicaid program. • The first $ 16,000,000 of the remaining 75% is distributed to a county that received a loan under the emergency municipal loan act to the extent necessary to satisfy obligations of a county. • The balance is distributed among the remaining counties based upon ratios tied to the most recent census. The State Department of Treasury originally estimated that 82 Michigan counties, excluding Wayne County, would share 5.3 % 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 $ 993,127 2003 $ 678,099 2004 $ 718,165 2005 $ 746,602 Est. t Adjusted Revenue Base Total Taxable Value = Adjusted Base Tax Rate The 2003 actual revenue is $ 96,625 more than the original estimate and therefore must be added to the 2005 estimate of $ 746,602 for purposes of computing the total ($ 843,227) Cigarette Tax component of the 2004 "Truth in Taxation" adjusted base tax rate. P.A. 264 of 1987 requires a county further reduce its base tax rate for "Truth in Taxation" purposes by the estimated cigarette tax revenues (adjusted for the difference between prior year estimate and actual). The cigarette tax revenue, to the extent not used to reduce the counties millage rates, must be used for the following purposes: • 12/17 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 replacement for any state or county payments to these health departments. • 5/17 of the distribution shall be used for one (1) or more of the following: Operation, maintenance or expansion of an existing county jail or juvenile facility; for acquisition, construction and equipping of a new jail or juvenile facility; or for court operations. Total 2004 Taxable Value 55,986,490,872 Unadjusted Base Tax Rate 0.0040722* Unadjusted Revenue Base $ 227,988,188 Less Convention Facility Tax Revenue 2,866,328 Less Cigarette Tax Revenue 843,227 Adjusted Revenue Base $ 224,278,633 224,278,633 55,986,490,872 = 0.0040595 X 1,000 = 4.0595 mills 2004 ADJUSTED BASE TAX RATE = 4.0595 mills * - 0 0040722 X 1,000 = 4.0722 mills SCHEDULE V PUBLIC HEARING REQUIREMENTS FOR LOCAL UNITS OF GOVERNMENT PA. 40 of 1995 - Budget Hearings for Local Government This act amends the law that requires local governments hold a Public Hearing on their proposed budget and give notice of the budget hearing by publication in a newspaper of general circulation at least six (6) days before the hearing. The act specifies that 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. The notice must also include the following statement printed bold faced in 11-point type: "THE PROPERTY TAX MILLAGE RATE PROPOSED TO BE LEVIED TO SUPPORT THE PROPOSED BUDGET WILL BE A SUBJECT OF • THIS HEARING." P.A. 41 of 1995 - Truth in Budgeting Act The Uniform Budgeting Act (Section 16) has been amended 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 subsection is known as and may be cited as the "TRUTH IN BUDGETING ACT". P.A. 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, P.A. 2 of 1968, as amended (Section 141.436), 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. N\Budget\BudgetProcess\taxrateMRbackup.doc (JCT 1 6 2003 WV. V ' JENNIFER M. GRANHOLM GOVERNOR STATE OF MICHIGAN DEPARTMENT OF TREASURY LANSING JAY B. RISING STATE TREASURER BULLETIN NO. 11 INFLATION RATE OCTOBER 16, 2003 DATE: October 16,2003 TO: Assessors Equalization Directors FROM: State Tax Commission RE: INFLATION RATE MULTIPLIER FOR USE IN THE 2004 CAPPED VALUE FORMULA AND THE 2004 "BEADLEE" MILLAGE REDUCTION FRACTION (MRF) FORMULA A) Inflation Rate Multiplier Used in the 2004 Capped Value Formula The inflation rate, expressed as a multiplier, to be used in the 2004 Capped Value Formula is 1.023. (The inflation rate multiplier for 2003 calculations was 1.015.) The 2004 Capped Value Formula is as follows: 2004 CAPPED VALUE = (2003 Taxable Value — LOSSES) X 1.023 + ADDITIONS The formula above does not include 1.05 because the inflation rate multiplier of 1.023 is lower than 1.05. Inflation Rate Multiplier Used in 2004 "Headlee" Calculations The inflation rate multiplier of 1.023 shall ALSO be used in the calculation of the 2004 "Headlee" Millage Reduction Fraction required by Michigan Compiled Law (MCL) 211.34d. • B) P.O. BOX 30471 • LANSING, MICHIGAN 48909,7971 www.michigan.gov/treasury • (517) 373-0500 Lt BULLETIN NO. 11 — INFLATION RATE Page 2 October 16, 2003 The formula for calculating the 2004 "Headlee" Millage Reduction Fraction (MU) is as follows: 2004 MRF = (2003 Taxable Value — LOSSES) X 1.023 2004 Taxable Value - ADDITIONS The following is a listing of the inflation rate multipliers used in the Capped Value and "Headlee" calculations since the start of Proposal A: 1995 1.026 1 1996 1.028 1997 1.028 1998 1.027 1999 1.016 2000 1.019 2001 1.032 2002 1.032 2003 1.015 2004 1.023 )5 FORM L-4028 COUNTY AND VILLAGES 2004 MILLAGE REDUCTION FRACTION COMPUTATIONS VALUATION WITHIN OAKLAND COUNTY 2003 TAXING AI JTHORITY TAXABLE Oakland County 53,179,886,010 Oakland County Parks & Recreation 53,179,886,010 Huron-Clinlon Metro Authority 53,179,886,010 2004 TAXABLE 55,986,490,872 55,986,490,872 55,986,490,872 LOSSES TAXABLE 867,721,296 867,721,296 867,721,296 ADDITIONS 2004 2004 2004 TAXABLE M.R.F. B.T.R.F. 2,162,058,705 0.9943 0.9719 1.0000 0.9943 0.9719 1.0000 IC* IC* IC* 2,162,058,705 2,162,058,705 VILLAGE Beverly Hills Bingham Farms Franklin Holly Lake Orion Leonard Milford Ortonville Oxford Wolverine Lake 494,033,981 516,654,023 2,278,474 4,486,047 0.9822 0.9601 1.0000 178,591,507 183,112,337 3,980,890 4,003,063 0.9973 0.9749 1.0000 244,280,566 260,678,282 2,958,654 10,067,437 0.9851 0.9629 1.0000 117,559,490 128,574,710 1,015,600 6,837,600 0.9794 0.9573 1.0000 102,248,870 112,824,790 1,066,068 7,000,642 0.9781 0.9561 1.0000 10,485,532 11,365,403 83,467 750,669 1.0000 0.9800 1.0000 213,419,160 233,316,697 2,592,317 13,814,786 0.9826 0.9605 1.0000 37,597,560 39,630,250 433,322 542,339 0.9727 0.9508 1.0000 123,209,834 131,371,340 1,955,500 5,009,323 0.9816 0.9596 1.0000 136,054,912 142,313,331 825,498 1,459,356 0.9821 0.9601 1.0000 912120C4 Page 1 of 1 L-4029 ORIGINAL TO: County Clerk(s) COPY TO: Equalization Department(s) COPY TO: Each township or city clerk Michigan Depielment of Treasury, SIC 614 (2.a This form is Issued under authority of MCI. Sections 211.24e. 211.34 and 211.34d. Filing is mandaIory; Penalty applies. (1) (2) (3) (4) (Sr (7) (8) (9) (10) (11) (6) (12) Operating 08/08/78 5.2600 4.2602 0.9943 4.2359 1.0000 Parks & Rec 08/08/00 0.2500 0.2436 0.9943 0.2422 1.0000 4.2359 0.2422 Prepa ed by Oakland County Equalization Telephone Number 148) 858-0752 Title of Preparer Tax Standards Specialist Date 2004 TAX RATE REQUEST (This form must be completed and submitted on or before October 1, 2004) MILLAGE REQUEST REPORT TO COUNTY BOARD OF COMMISSIONERS Coua y 2004 Taxable Value of ALL Properties in the Unit as of 5-28-04 OAKLAND 55,986,490,872 Local Government Unit For LOCAL School Districts: 2004 Taxable Van's of Non-Homestead and COUNTY OF OAKLAND Non•Quatilled Agricultural Properties it s miliaga is Levied Against Them PLEASE READ THE INSTRUCTIONS ON THE REVERSE SIDE CAREFULLY Penalty for non-filing is provided under MCL Sec 211.119. You riust complete this form for each unit of government for which a property tax is levied. The following tax rates have been authorized for levy on the 2004 tax roll. Source Voted Voted Millage Authorized by Election, Charter. etc. 2003 Millage Rate Permanently Reduced by MCI 211.34d 2004 Current Year Millage Reduction Fraction 2004 Millage Rate Permanently Reduced by MCL 211.34d 2004 Sec 211.34 Millage Rollback Fraction Maximun Allowable Millage Lev Millage Requested to be Levied July 1 Millage Requested to be Levied Dec. 1 Expiration Date of - Millage Authorized 12/31/11 Purpose of Date of Millage Election As tho 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 xinstitution (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). 0 Clerk ci Secre ary 0 Chairperson o Fresicent swum.. Type Name Date shimmy, Type Name Data Linear Truth in Taxation, MCI 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 r Nuirements 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). .73 GARY C. BARTSCH, Direct°, JAMES J. BRESCIAMI, Deputy Director DAVID L WAHL, Controller MICHAEL G. MAGEE, Secretary HURON-CLINTON , Administrative Offices 13000 High Ridge Drive • P.O. Box 2001 • Brighton, Michigan 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 ETROPOLITAN AUTHORITY Reply To New Mailing Address: Administrative Offices 13000 High Ridge Drive Brighton, Michigan 48114-9058 August 13, 2004 COMMISSIONERS JAMES YOUNG, Chairman WILLIAM E. KREGER, Vice Chairman JAMES CLARKSON, Treasurer JOHN C. HERTEL HARRY E. LESTER ROBERT W. MARANS PETER S. WALTERS RE: 2004 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 2004 levy the Authority is subject to a Millage Reduction Fraction of .9968. This rate is then applied to our 2003 permanently reduced maximum millage of .2161 mills, yielding a 2004 permanently reduced millage rate of .2154. Accordingly, we are requesting you to levy .2154 mills for Metropark development and operations. For your information, this will produce a levy of $12,059,490.13 based on a final 2004 Taxable Value of $55,986,490,872. 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, $92,295.49 will be added, based on the 1975 exempt inventory valuation of $477,191,347 multiplied by the 1996 frozen rate of .2236 and reduced further by the Governor's Executive Order. It is anticipated that in total, $12,151,785.62 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 A FIVL COUNTY RECREATION AUTHORITY SERVING LIVINGSTON MACON1B OAKLAND. VVASHTENAVV AND WAYNE COLNFIES DELHI • DEXTER-HURON • HUDSON MILLS • HURON MEADOWS • INDIAN SPRINGS • KENSINGTON • LAKE ERIE LOWER HURON • METRO BEACH • OAKWOODS • STONY CREEK • WILLOW • AND WOLCOTT MILL METROPARKS 1t ORIGINAL TO: County Clerk(s) COPY TO: Equalization Department(s) COPY TO: Each township or city clerk L-4029 2004 TAX FATE REQUEST (This form must be completed and submitted on or before October 1, 2004) MILLAGE REQUEST REPORT TO COUNTY BOARD OF COMMISSIONERS Michigan Deparimer 1 of Treasury 614 (Rev. 2-04.) This form is issued under aulhorily of MCI Seclions 211.24e. 21134 and 211.34d. Filing is mandatory; Penally applies. PLEASE READ THE INSTRUCTIONS ON THE REVERSE SIDE CAREFULLY. (12) (11) . . County 2004 Taxable Value of ALL Properties in the Unit as of 5-24-04. . Oakland 55,986,490,872 *** local Govemmt fit Unit Hur on—Clinton For LOCAL School Districts: 2004 Taxable Value of Non-Homestead and Non-Qualified Agricultural Metropolitan Authority Properties if a millage Is Levied Against Them. You must co 'nplete 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 2004 tax roll. (1) (2) (3) (4) (5)" (6) (7) (8) (9) (10) Sec. 211.34 2003 2004 2004 Truth in Original Miltage Rate Current Year Millage Rate Assessing or Millage MIllage Millage Permanently "Headlee" Permanently Equalization Maximum Requested Requested Expiration Authorized Reduced by Millage Reduced by Millage Allowable to be to be Date of Purpose of Date of by Election, MCL 211.34d Reduction MCI 211.34d Rollback MIllage Levied Levied Millage Source Millaqe Election Charter, etc. "Readies" Fraction "Headlee" Fraction Levy * July 1 Dec. 1 Authorized et 147 of Public Cap Impr. , .. Act of 1939 & Operations 11/40 .2500 .2161 .9968 .2154 1.0000 .2154 N/A .2154 None Prepared by Telephone Number Title of Preparer Date .S4 ;,...s....S .n ..,—.L.----.5.1.0 —227 —2757 Controller 8/12/04 11.•n 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 IsACL Sections 211.24e, 211.34 and, for LOCAL school districts whigh-ltnrha Supplemental (Hold Harmless) Millage, 380.1211(3). Signa - .. ., 1 Type Name Date Michael G. Magee 8/12/04 Sign Type Name Date .iir — _ . ... James Young 8/12/04 L—Se6ti5n -2-11.24e, governing body y decide to levy a rate which will not exceed the maximum authorized rate allowed in column 9. 11.24e must be mJifor to levying an orating levy which is larger than the base tax rate but not larger than the rate in column 9. ** IRA ri A PA liVir Oki NT See instructions on the reverse side regarding where to find the millage rate used in column (5). *** Does not include $477,191,347 of 1975 S.E.V. of personal inventories in Oakland County. El Clerk Secretaty Chairperson President * Under Tru.h in Taxation The requirements of MO Instructions For 2004 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 number, 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 millage, 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. 7 of 2004 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 district which does not levy a Supplemental (Hold Harmless) Millaoe. 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: 2003 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 2003 permanently reduced rate can be found in column 7 of the 2003 Form L-4029. For operating millage approved by the voters after May 31, 2003, 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 2004 Millage Reduction Fraction Calculations Worksheet, Form L-4034. The millage reduction fraction shall be rounded to four (4) decimal places. The current year millage reduction fraction shall not exceed 1.0000 for 2004 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, 2004. For debt service or special assessments not subject to a millage reduction fraction, enter 1.0000. Column 7: 2004 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 2004 Form L-4029. This rate must be rounded DOWN to 4 decimal places. (See SIC Bulletin No. 11 of 1999.) For debt service or special assessments not subject to arnillage reduction fraction, enter "NA" signifying "not applicable". Column 8: Section 211.34 Millage Rollback Fraction (Truth in Assessing or Truth in Equalization). List the miltage rollback fraction for 2004 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 caluiated on SIC 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. 7 of 2004. 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 CLASSES/TOTAL 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 (2004 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 SIC 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. 7 of 2004. 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. JENNIFER M. GRANHOLM GOVERNOR STATE OF MICHIGAN DEPARTMENT OF TREASURY LANSING JAY B. RISING STATE TREASURER August 24,2004 Mr. Thomas Law, Chairperson Oakland County Board of Commissioners 6766 Glenway Dr. W. Bloomfield Hills, Michigan 48322 Dear Mr. Law: TRI-COUNTY CONVENTION FACILITIES TAX/4% STATE-WIDE LIQUOR TAX Distribution for 2005 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 58 of 1998 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 2003-04 collections is $2,927,576, which is 146 percent of the county's estimated FY 2003-04 liquor tax collections. The actual distribution to counties will be made in February 2005. Reduction in Base Tax Rate for 2,1)04 Truth-In-Taxation Hearing Purposes Counties are required to use the estimate to reduce their base tax rate for 2004 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 ($61,247). Therefore, the amount of the convention facility/liquor tax distribution that is to be used to reduce the Oakland County base tax rate for 2004 truth-in-taxation hearing purposes is $2,866,328. CIGARETTE TAX, HEALTH AND SAFETY FUND ACT Distribution for 2005 Counties share in the revenues from 4 cents 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 2005 is $746,602. Page 2 August 24,2004 Reduction in Base TaxLAte for n0Truth-in-Taxation Hearing Purposes The estimated HSF distribution for 2005 is adjusted by the difference between the actual and estimated distribution during 2003. This difference for Oakland County is $96,625. Counties are required to use this adjusted amount of $843,227 to further reduce their base tax rate for 2004 truth-in-taxation hearing purposes, under Public Act 264. Healthy Michigan Fund Article Dc, 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 its base tax rate for 2004 truth-in-taxation hearing purposes is $3,709,555. 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 tnillage rate is required by Public Act 2 to be distributed to the counts 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, Tax Analysis Division Bureau of Tax and Economic Policy cc: County Treasurer County Equalization Director County Executive/Administrator/Controller/Coordinator I HWY APPROYE TIE TOM ' G. William Caddell, County Clerk Resolution #04278 September 22, 2004 Moved by Moss supported by Knollenberg the resolution be adopted. Moved by McMillin the resolution be amended as follows: 1. After the 7th WHEREAS paragraph, add the following WHEREAS paragraph: WHEREAS the Oakland County Parks and Recreation Commission intends to utilize some of its 2005 property tax revenues to build a new banquet facility at White Lake Oaks golf course, which will cause unfair competition to area private banquet halls and golf courses who have to pay property taxes and are not subsidized with taxpayer money; 2. In the final WHEREAS paragraph, change 0.2422 to 0.2333 and change $13,559,928 to $13,061,648. 3. In the "NOW THEREFORE BE IT RESOLVED" paragraph, change 0.2422 to 0.2333 There being no support, the motion to amend failed. Moved by McMillin the resolution be amended as follows: 1. In the final WHEREAS paragraph, change 4.1900 to 4.0900 and change $234,583,397 to $228,984,748. 2. In the "NOW THEREFORE BE IT RESOLVED" paragraph, change 4.1900 to 4.0900. And to make all necessary adjustments to the budget and fund balance to reflect this change. There being no support, the motion to amend failed. Discussion followed. Vote on resolution: AYES: Coulter, Crawford, Douglas, Gregory, Jamian, Knollenberg, KowaII, Law, Long, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack, Bullard, Coleman. (23) NAYS: McMillin. (1) A sufficient majority having voted therefore, the resolution was adopted. ,1111••• 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 22nd, 2004 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of 10e County of Oakland at Pontiac, Michigan this 22nd day of September, 2004.