HomeMy WebLinkAboutInterlocal Agreements - 2019.09.05 - 34811
September 23, 2021
Michigan Department of State
Office of the Great Seal
Richard H. Austin Building, 1st Floor
430 W. Allegan
Lansing, MI 48918
Dear Office of the Great Seal:
On September 5, 2019, the Board of Commissioners for Oakland County entered into an agreement per MR #19284 –
Information Technology – Amendments to Exhibits XIII of the Comprehensive I.T. Services Interlocal Agreements.
As required by Urban Cooperation Act 7 of 19 67 - MCL 124.510(4), a copy of the signed agreement with the County of
Oakland and the City of Oak Park, and the authorizing Board of Commissioners Resolution are enclosed for filing by your
office.
Send confirmation of receipt of this agreement to:
Mr. Joseph Rozell, Director of Elections
Oakland County Clerk/Register of Deeds
County Service Center, Building #14 East
1200 N. Telegraph Rd.
Pontiac, MI 48341
(Please include our Miscellaneous Resolution number on the confirmation of receipt letter for filing purposes.)
Contact our office at (248) 858-0564 if you have any questions regarding this matter.
Sincerely,
COUNTY OF OAKLAND
Joseph J. Rozell, CERA
Director of Elections
Cc: Donna Dyer, Corporation Counsel, Oakland County
Sharon Cullen, Corporation Counsel, Oakland County
Kim McCabe, IT Project Specialist, Oakland County
T. Edwin Norris, Clerk, City of Oak Park
Enclosures
CITY OF OAK PARK, MICHIGAN
REGULAR COUNCIL MEETING OF THE
38th OAK PARK CITY COUNCIL
February 15, 2021
7:00 PM
MINUTES
Mayor McClellan called the virtual meeting to order at 7:01 p.m. Oak Park City Hall, 14000 Oak Park
Boulevard, Oak Park, MI 48237. (248) 691-7544.
PRESENT: Mayor McClellan, Mayor ProTem Burns, Council Member Radner, Council
Member Edgar, Council Member Whitehead
ABSENT: None
OTHERS
PRESENT: City Manager Tungate, City Clerk Norris, City Attorney Krause
APPROVAL OF AGENDA:
CM-02-041-21 (AGENDA ITEM #3) ADOPTION OF THE AGENDA AS
SUBMITTED – APPROVED
Motion by Edgar, seconded by Whitehead, CARRIED UNANIMOUSLY, to approve the
agenda as submitted.
Voice vote: Yes: McClellan, Burns, Radner, Edgar, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
CONSENT AGENDA:
CM-02-042-21 (AGENDA ITEM #4A-C) CONSENT AGENDA - APPROVED
Motion by Whitehead, seconded by Burns, CARRIED UNANIMOUSLY, to approve the
Consent Agenda consisting of the following items:
A. Regular City Council Meeting Minutes of February 1, 2021 CM-02-043-21
B. Parks and Recreation Commission Meeting Minutes of December 16, 2020 CM-02-044-21
C. Licenses New and Renewals submitted for February 1, 2021 CM-02-045-21
Voice Vote: Yes: McClellan, Burns, Radner, Edgar, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
Regular Council Meeting
February 15, 2021
Page 2
RECOGNITION OF VISITING ELECTED OFFICIALS:
Commissioner Yolanda Smith Charles provided an update on activities related to Oakland County.
State representative Regina Weiss provided information pertaining to activities in Lansing.
SPECIAL RECOGNITION/PRESENTATIONS:
(AGENDA ITEM #6A) Black History Month Special Presentation
Arts and Cultural Diversity Commission Vice Chairperson Stephanie Crawford presented a video
that recognized community leaders Patrick Poteet and Juanita Bell.
PUBLIC HEARINGS:
(AGENDA ITEM #7A) Public Hearing to receive public comments on the allocation of the
2021 Community Development Block Grant (CDBG) funds
Mayor McClellan opened the public hearing to receive public comments for the allocation of the
2021 Community Development Block Grant Funds at 7:28 P.M. There were no members of the
public who wished to speak and there were no written comments received to enter into the record.
The public hearing was closed at 7:30 PM.
CM-02-046-21 (AGENDA ITEM #7B) RESOLUTION APPROVING THE
RECOMMENDED ALLOCATIONS OF THE 2021 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND
AUTHORIZING THE MAYOR TO SIGN THE APPLICATION AND
SUB RECIPIENT AGREEMENT ON BEHALF OF THE CITY
- APPROVED
Motion by Burns, seconded by Radner, CARRIED UNANIMOUSLY, to approve the
following resolution approving the recommended allocations of the 2021 Community
Development Block Grant Funds and to authorize the Mayor to sign the application and sub
recipient agreement on behalf of the City:
RESOLUTION APPROVING THE 2021
COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION
WHEREAS, Oakland County is preparing an Annual Action Plan to meet application requirements for the
Community Development Block Grant (CDBG) program, and other Community Planning and Development
(CPD) programs; and
WHEREAS, Oakland County has requested CDBG eligible projects from participating communities for
inclusion in the Action Plan; and
WHEREAS, the City of Oak Park is a participating local unit of government in the Oakland County
Community Development Block Grant Program; and
WHEREAS, the City Of Oak Park has duly advertised and conducted a public hearing on February 15,
2021 for the purposes of receiving comments regarding the proposed use of Program Year 2021
Community Development Block Grant funds in the approximate amount of $128,952.00; and
WHEREAS, the public hearing conformed to the guidelines of the Oakland County Community
Development Division; and
Regular Council Meeting
February 15, 2021
Page 3
WHEREAS, The City of Oak Park found that the following projects meet the federal objectives of the
CDBG program and are prioritized by the community as high priority need:
Account Number Project Name Amount
172170-730310 Code Enforcement $98,952.00
172160-732170 Public Service/Yard Services $30,000.00
NOW THEREFORE, BE IT RESOLVED, that the City of Oak Park CDBG application is hereby
authorized to be submitted to Oakland County for inclusion in Oakland County’s Annual Action Plan to the
U.S. Department of Housing and Urban Development, and that the Mayor is hereby authorized to execute
all documents, agreements, or contracts which result from this application to Oakland County.
Roll Call Vote: Yes: McClellan, Radner, Burns, Edgar, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
COMMUNICATIONS: None
SPECIAL LICENSES: None
ACCOUNTING REPORTS:
CM-02-047-21 (AGENDA ITEM #10A) APPROVAL FOR PAYMENT OF
INVOICES SUBMITTED BY GARAN, LUCOW, MILLER, P.C.
FOR LEGAL SERVICES IN THE TOTAL AMOUNT OF $13,956.52
- APPROVED
Motion by Radner, seconded by Edgar, CARRIED UNANIMOUSLY, to approve payment
of invoices #555191, #555192 and #555193 by Garan, Lucow, Miller P.C., for legal
services rendered through January 31, 2021 in the total amount of $13,956.52.
Roll Call Vote: Yes: McClellan, Burns, Edgar, Radner, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
CM-02-048-21 (AGENDA ITEM #10B) PAYMENT OF AN INVOICE SUBMITTED
BY THE LAW OFFICES OF HOWARD L. SHIFMAN, P.C. FOR
LEGAL SERVICES IN THE TOTAL AMOUNT OF $18,000.00
- APPROVED
Motion by Burns, Seconded by Edgar, CARRIED UNANIMOUSLY, to approve payment
of invoice #14450 to Howard L. Shifman, P.C. for legal services from January 1, 2021 –
March 31, 2021 in the total amount of $18,000.00.
Roll Call Vote: Yes: McClellan, Burns, Edgar, Radner, Whitehead
No: None
Absent: None
Regular Council Meeting
February 15, 2021
Page 4
MOTION DECLARED ADOPTED
BIDS: None
ORDINANCES: None
CITY ATTORNEY: No Report
CITY MANAGER:
Administration
CM-02-049-21 (AGENDA ITEM #14A) REQUEST TO APPROVE AN
AMENDMENT TO THE INTERLOCAL AGREEMENT BETWEEN
OAKLAND COUNTY AND CITY OF OAK PARK REGARDING
MIDC CONTINUING LEGAL EDUCATION REQUIREMENTS
AND TO AUTHORIZE THE CITY MANAGER TO SIGN THE
AMENDMENT ON BEHALF OF THE CITY - APPROVED
Motion by Edgar, seconded by Burns, CARRIED UNANIMOUSLY, to approve an
amendment to the Interlocal Agreement between Oakland County and City of Oak Park
regarding MIDC continuing legal education requirements and to authorize the City
Manager to sign the amendment on behalf of the City.
Roll Call Vote: Yes: McClellan, Burns, Edgar, Radner, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
Director of Strategic Planning and Special Projects VanVleck summarized the amendment and
reported the Michigan Indigent Defense Commission was created by legislation in 2013 to ensure
the state’s public defense system is fair, cost-effective, and constitutional. The Commission has
released a set of standards to be followed by all courts in the State, which have been approved by
the Department of Licensing and Regulatory Affairs. Each local system is asked to create a plan to
ensure compliance with these standards, with costs for compliance being borne by the State. As a
part of our plan, in order to ensure our system is in compliance with Standard 1 “Education and
Training of Defense Counsel” we have entered into an interlocal agreement with Oakland County
to participate in their CLE Program, which is administered by the Oakland County Bar Association
(OCBA), ensuring that our criminal defense attorneys are meeting their continuing legal education
requirements. Oakland County has proposed an amendment to Section 2.2 of the agreement,
effectively placing an automatic renewal of the agreement for December 31st of each calendar year
unless terminated by either party.
Public Safety Department
CM-02-050-21 (AGENDA ITEM #14B) REQUEST TO RENEW THE INTER
LOCAL AGREEMENT WITH OAKLAND COUNTY FOR CLEMIS
IT SERVICES AND TO AUTHORIZE THE CITY MANAGER TO
SIGN THE AGREEMENT ON BEHALF OF THE CITY
- APPROVED
Regular Council Meeting
February 15, 2021
Page 5
Motion by Radner, seconded by Burns, CARRIED UNANIMOUSLY, to renew the Inter
Local Agreement with Oakland County for CLEMIS IT Services and to authorize the City
Manager to sign the agreement on behalf of the City.
Roll Call Vote: Yes: McClellan, Burns, Radner, Edgar, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
Public Safety Director Cooper summarized the Inter Local Agreement for CLEMIS IT Services
with Oakland County. The acronym "CLEMIS" stands for (Court and Law Enforcement
Management Information System). CLEMIS is a multifaceted regional public safety information
management system, operated and maintained by Oakland County Department of Information
Technology. CLEMIS is comprised of many software applications. The purpose of CLEMIS is to
provide innovative technology and related services to criminal justice/public safety agencies to
enable them to share data and improve the delivery of criminal justice/public safety services.
The Oak Park Public Safety Department currently uses CLEMIS for prisoner processing
(fingerprinting, booking, mugshots), report writing for police and fire incidents, In car computers,
on-line crash reports, e-citations, daily log sheets, evidence and property system. This system is
also used to access incident reports throughout the various agencies in multiple counties (Oakland,
Macomb, Wayne and Genesee, etc.). Various components of the system are also used by other
departments within the City. The Oak Park Department of Public Safety has used CLEMIS for over
25 years and is invaluable and an absolute must for Public Safety.
Finance/Assessing
(AGENDA ITEM #14C) Quarterly Investment Report for period ending 12/31/2020
Finance Director Crawford presented the second quarter investment report.
Second Quarter Fiscal 2020/2021 Investment Report
The State of Michigan Public Act 213 of 2007 requires the City’s investment officer to provide a written
report quarterly to the governing body concerning the investment of all funds of the City that fall under
Public Act 20. Public Act 20 governs how non-pension and non-OPEB funds can be invested. The
attached report details the cash and investments (citywide for all funds) held by the City at December 31,
2020. The report includes a description of each investment by type, market and book values, current and
yield to maturity interest rates and the number of days to maturity.
The second quarter investment report shows total citywide cash and investments of $33,659,956 (market
value) including cash in the operating account of $1,234,717 (excluding outstanding checks and other
adjustments), short-term investments in the Oakland County Investment Pool of $30,131,354, and long-
term investments total $2,293,885. The City has maximized investment return on short-term cash by
utilizing the Oakland County Investment Pool and minimizing the amount maintained in the checking and
daily depository accounts. Investment income for the months of October through December 2020 totaled
$78,657.
During the second quarter overall investment returns are still at the same low levels as in the first quarter
of FY 2020-21; as Economists predicted. The return for the second quarter was approximately 0.90%
primarily due to COVID-19 and the Federal Reserve rates set at nearly zero. As a result, the City is
investing short-term and locking up longer term investments if the individual interest rate is favorable.
Regular Council Meeting
February 15, 2021
Page 6
Interest rates for the next quarter are expected to remain low and overall investment will continue to fall as
long-term investments continue to mature.
(AGENDA ITEM #14D) Quarterly Financial Report for period ending 12/31/2020
Finance Director Crawford presented the second quarter financial report.
GENERAL FUND
REVENUES
Total revenues for the first quarter total approximately $19 million, representing approximately 84% of the
annual budget. Overall revenues are on track with budget with the following items of note:
• Property Tax Revenue – City property tax levies are billed July 1 and payable in full without penalty
by August 31, 2020. As of the end of the second quarter approximately 94% of the taxes billed had
been paid. Any unpaid real property taxes will be purchased from the City by Oakland County in
May 2021. Property tax revenue is the primary reason the overall revenues are at 84% to date.
• Intergovernmental Revenue (State Revenue Sharing) – The City receives six bi-monthly payments
annually for state-shared revenue. The second quarter report reflects two fiscal 2020/21 payments
totaling $1,344,770 as the August 31, 2020 payment by statute is included as part of the June 30,
2020 revenues. The City will receive the remaining payments on February 28, April 30, June 30
and August 31 (2021) related to the current fiscal year. The estimated annual revenue included in
the budget totals $3,570,123.
• Fines and forfeiture revenue received from the 45th District Court is budgeted for a total of
$1,700,000 of which $645,441 or 38% was received in this second quarter. Overall court revenue
continues to be less than prior year and less than budget due to COVID-19 and the reduced number
of drivers on the road and tickets written. The court has done a good job reducing their costs to
offset some of the lost revenue. The revenue received is used to offset a portion of the court’s
operating costs. Finance will continue to monitor both the court revenue and expenditure budgets
and amended as necessary.
• Federal grants revenue is higher than originally anticipating as the City is receiving federal CARES
funds passed through the State of Michigan and Oakland County related to the COVID -19
pandemic. The revenue will be used to offset both unbudgeted expenditures incurred since March
2020 along with reimbursement of some allowable budgeted costs (which will be used to offset
some of the revenue lost). Finance will be bringing forward budget amendments for both the
revenue and any related unbudgeted expenditures.
• Recreation program fees continue to lag behind both prior and the current year reduced budget due
to the COVID-19 pandemic and related shutdown. Program fees are currently at approximately
35% of budget and historically represent closer to 50% through the second quarter. Some of the
revenue loss has been offset by cost savings and budget amendments will be forthcoming in this
second quarter to reflect the most recent projects.
EXPENDITURES
Total expenditures for the second quarter total approximately $9.4 million, representing approximately 43%
of the annual budget. Overall departmental expenditure budgets are on track with the following items of note
(departments over 50%):
Regular Council Meeting
February 15, 2021
Page 7
• The Human Resources Department is at 57% for the second quarter due to the increase in the defined
contribution retirement amount for the new Human Resource Director. This will be amended in this
second quarter of budget amendments.
• The Prosecuting Attorney is at 58% of their budget due to the timing of when payment is made.
• Elections is at 73% of their budget due to the timing of when the elections take place. The presidential
primary was during the first quarter and the general election is in this second quarter resulting in the
majority of the budget being expended during the first six months of the year. The overall net budget
for the department is in line with current annual projections.
• The Special Events Recreation Department is at 59% of their budget due to the seasonality nature of
recreation programs. The overall net budget for the department is in line with current annual
projections. All other recreation departments are running significantly under budget due to the
COIVD-19 pandemic and will be amended in this second quarter of budget amendments (see note on
recreation revenues above).
• Communications Department is at 52% of their budget due to all of the capital outlay expense, being
expensed in this second quarter.
Overall the General Fund operations are in line with the annual budget. However, Finance will continue to
monitor the revenues and expenses and bring forth the budget amendments that are necessary. The
projected fund balance remains at the targeted level of 20% of annual expenditures.
CM-02-051-21 (AGENDA ITEM #14E) BUDGET AMENDMENT #2021-3 FOR
PERIOD ENDING DECEMBER 31, 2020 - APPROVED
Motion by Weiss, seconded by Burns, CARRIED UNANIMOUSLY, to adopt the
following resolution approving Budget Amendment #2018-1 for period ending December
31, 2017 as follows:
RESOLUTION
NOW, THEREFORE BE IT RESOLVED that the following
Budget Amendment #202-3 is authorized:
INCREASE
(DECREASE)
GENERAL FUND
REVENUES
PROPERTY TAXES $ -
LICENSE AND PERMITS 50,875
INTERGOVERNMENTAL 1,842,681
CHARGES FOR SERVICES (136,000)
FINES AND FORFEITURES (400,000)
INTEREST INCOME (4,015)
OTHER REVENUE 77,694
TOTAL REVENUES 1,431,235
EXPENDITURES
CITY COUNCIL -
CITY MANAGER (9,000)
HUMAN RESOURCES (6,000)
COMMUNITY & ECONOMIC DEVELOPMENT (2,130)
Regular Council Meeting
February 15, 2021
Page 8
INFORMATION TECHNOLOGY -
CITY CLERK - ELECTIONS 27,500
CITY CLERK (1,500)
FINANCE (21,000)
TECHNICAL AND PLANNING (30,000)
PUBLIC SAFETY (7,000)
RECREACTION (117,000)
PUBLIC WORKS (3,000)
NON-DEPARTMENTAL 276,365
PUBLIC INFORMATION 23,125
TOTAL EXPENDITURES 130,360
Net Increase to Fund Balance $ 1,300,875
LIBRARY FUND
REVENUES
PROPERTY TAXES $ -
INTERGOVERNMENTAL -
CHARGES FOR SERVICES -
FINES AND FORFEITURES -
INTEREST INCOME -
OTHER REVENUE -
TOTAL REVENUES -
EXPENDITURES
SALARIES (9,000)
UTILITIES - WATER -
TOTAL EXPENDITURES (9,000)
Net Increase to Fund Balance $ 9,000
MAJOR STREETS FUND
REVENUES
INTERGOVERNMENTAL $ 79,976
INTEREST INCOME (2,976)
OTHER REVENUE -
TOTAL REVENUES 77,000
EXPENDITURES
SALARIES (18,000)
FRINGES -
TOTAL EXPENDITURES (18,000)
Regular Council Meeting
February 15, 2021
Page 9
Net Increase to Fund Balance $ 95,000
LOCAL STREETS FUND
REVENUES
INTERGOVERNMENTAL $ 31,533
CHARGES FOR SERVICES -
INTEREST INCOME 2,467
OTHER REVENUE -
TOTAL REVENUES 34,000
EXPENDITURES
SALARIES (3,000)
FRINGES -
TOTAL EXPENDITURES (3,000)
Net Increase to Fund Balance $ 37,000
SOLID WASTE FUND
REVENUES
PROPERTY TAXES $ -
INTERGOVERNMENTAL -
CHARGES FOR SERVICES -
INTEREST INCOME 3,000
OTHER REVENUE -
TOTAL REVENUES 3,000
EXPENDITURES
SALARIES (9,000)
OPERATIONS -
TOTAL EXPENDITURES (9,000)
Net Increase to Fund Balance $ 12,000
PUBLIC IMPROVEMENT FUND
REVENUES
PROPERTY TAXES $ -
INTERGOVERNMENTAL $ -
CHARGES FOR SERVICES -
INTEREST INCOME 1,708
TRANSFERS IN 44,000
TOTAL REVENUES 45,708
Regular Council Meeting
February 15, 2021
Page 10
EXPENDITURES
SALARIES -
FRINGES -
CAPITAL OUTLAY 124,057
TOTAL EXPENDITURES 124,057
Net Increase to Fund Balance $ (78,349)
CITY OWNED PROPERTY FUND
REVENUES
INTEREST INCOME $ -
SALE OF FIXED ASSETS -
TOTAL REVENUES -
EXPENDITURES
CAPITAL OUTLAY
TRANSFERS OUT 44,000
TOTAL EXPENDITURES 44,000
Net Decrease to Fund Balance $ (44,000)
MUNICIPAL COMPLEX CONSTRUCTION FUND
REVENUES
INTEREST INCOME $ -
TOTAL REVENUES -
EXPENDITURES
PROFESSIONAL SERVICES 44,558
TOTAL EXPENDITURES 44,558
Net Decrease to Fund Balance $ (44,558)
WATER AND SEWER FUND
REVENUES
CHARGES FOR SERVICES $ 13,000
INTEREST EARNINGS (3,422)
OTHER REVENUE 12,500
TOTAL REVENUES 22,078
EXPENDITURES
SALARIES (66,000)
Regular Council Meeting
February 15, 2021
Page 11
OPERATIONS 11,078
TOTAL EXPENDITURES (54,922)
Net Decrease to Fund Balance $ 77,000
MOTOR POOL INTERNAL SERVICE FUND
REVENUES
CHARGES TO OTHER FUNDS $ -
TOTAL REVENUES -
EXPENDITURES
SALARIES 3,000
OPERATIONS (3,000)
TOTAL EXPENDITURES -
Net Decrease to Fund Balance $ -
Roll Call Vote: Yes: McClellan, Burns, Edgar, Radner, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
CM-02-052-21 (AGENDA ITEM #14F) RATE OF COMPENSATION FOR THE
BOARD OF REVIEW MEMBERS AND THE 2021 MEETING
DATES AND TIMES – APPROVED
Motion by Burns, Seconded by Edgar, CARRIED UNANIMOUSLY, to approve
the rate of compensation for the Board of Review at $120.00 for a full day and $60.00 for a
half day of service and the following dates and times for the 2021 Board of Review Meetings
to be held at City Hall:
Monday March 8, 2021 9:00 am to 1:00 pm & 3:00 pm to 7:00 pm
Tuesday March 9, 2021 6:00 pm to 8:00 pm
Monday March 22, 2021 9:00 am to 1:00 pm & 2:00 pm to 4:00 pm
Roll Call Vote: Yes: McClellan, Burns, Radner, Edgar, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
Finance Director Crawford indicated the City Charter (Section 10.6) states that the rate of
compensation for the Board of Review shall be established by City Council and (Section 10.7)
states that the Board of Review shall meet on the second and fourth Monday in March for the
Regular Council Meeting
February 15, 2021
Page 12
purpose of hearing tax assessment appeals. The Assessing Department is requesting to schedule
one additional date with the option to add additional dates if needed.
CM-02-053-21 (AGENDA ITEM #14G) CITY OF OAK PARK 2021 POVERTY
EXEMPTION POLICY – APPROVED
Motion by Burns, Seconded by Whitehead, CARRIED UNANIMOUSLY, to adopt the
following City of Oak Park 2021 Poverty Exemption Policy:
CITY OF OAK PARK
2021 POVERTY EXEMPTION POLICY
PURPOSE:
The purpose of this policy is to establish guidelines to be used by the Board of Review in determining whether
a homeowner is eligible for a poverty exemption from property taxes.
SCOPE:
The poverty exemption policy applies to qualified low income individuals who own homesteads in the City
of Oak Park. The policy limits the length of poverty exemptions to one year.
POLICY:
The Board of Review shall use the following guidelines to determine if a property owner qualifies for a
poverty exemption from property taxes:
1. Exemptions will be granted to owners of homesteads only. Property must be granted at least a 50%
homestead exemption from the State of Michigan.
2. Per, MCL 211.7u(3), the application for consideration must be received by the Assessor's Office at
least one day prior to the last session of the Board of Review. The application can be made by mail,
if received one day prior to the last session of the Board of Review.
3. All applicants must file a claim with the Board of Review on a form prescribed by the State Tax
Commission. The application must be filled out in its entirety and all requested documentation must
be attached. If an area does not apply to the applicant, "N/A" must be used. If the application is not
complete or requested documentation is not included, the Board of Review will deny the exemption.
All pages included with this application must be returned when the application is submitted for
review.
4. Per MCL 211.7u(7), a person who files a claim for Poverty exemption IS NOT prohibited from also
appealing the assessment on the property to the Board of Review in the same year.
5. The poverty threshold for eligibility for a poverty exemption is a figure which is equal to the Federal
income standards established annually by the United States Office of Management and Budget for
the previous calendar year. To be eligible for a poverty exemption from property taxes, the income
of the property owner (household) must be less than the poverty threshold for the number of persons
within the household.
6. All income and assets for persons in the household are reported in accordance with a form prescribed
by the State Tax Commission.
Regular Council Meeting
February 15, 2021
Page 13
a. Per MCL 211.7u(2)(b), federal and state income tax returns for all persons residing in the
principal residence must be included with the application including any property tax credit
returns. The tax returns may be from the current or preceding tax year. If any person in the
household is not required to file federal or state tax returns, the included affidavit, form 4988,
must be completed by each person that does not file taxes.
b. The most recent statement for all bank accounts, investments, IRAs, CDs, 401Ks, money
market, annuities, etc. The statement submitted must be complete with no missing pages and
submitted for all persons residing in the home.
c. Proof of income/assets from the Social Security Administration, Veterans Administration,
Medicare, Medicaid, Bridge Card, and any College/University scholarships for all persons
residing in the home.
d. The most recent mortgage statement of the primary residence under review, including any
reverse mortgages.
e. If primary residence being sought for exemption was purchased within the past two years of
this application, homeowner's closing statements must be submitted with application.
7. Maximum total allowed assets, including amounts in banking/investment accounts may not exceed
the amount of the federal poverty guideline for the number of persons in the household. Maximum
total allowed liquid assets, specifically amounts in banking/investment accounts may not exceed the
amount of projected 2021 taxes PLUS 50% for the entire household. The Asset Level does not include
the primary residence for which exemption is being sought. It does include, but is not limited to:
a. A second home, additional land not associated with the primary residence, or other buildings
other than the primary residence being sought for exemption.
b. Vehicles and other recreational vehicles such as motor homes, campers, ATVs, boats, and
motorcycles.
c. Jewelry, antiques, artwork, equipment, and other personal property of value.
d. Bank accounts, stocks, bonds, and investments. This also includes the money received from
the sale of stocks, bonds, investments, cars, and houses unless a person is in the specific
business of selling such property.
e. Withdrawals of bank accounts and borrowed money.
f. Gifts, loans, lump-sum inheritances, and one-time insurance payments.
g. Food or housing received in lieu of wages and the value of food and fuel produced and consumed
on farms.
h. Federal non-cash benefits programs such as Medicare, Medicaid, food stamps, and school
lunches.
i. The total interest income in all accounts (checking, savings, CDs, IRAs, 401Ks, money
market, annuities, etc.)
j. The applicant shall not have ownership interest in any real estate other than the primary
residence being considered for exemption.
8. Applicants that meet the income and asset qualifications will have the taxable value reduced by 50%
for the current year.
9. Poverty exemptions shall be granted for one year only. The property owner must apply every year
in order to receive an exemption.
Regular Council Meeting
February 15, 2021
Page 14
Roll Call Vote: Yes: McClellan, Burns, Radner, Edgar, Whitehead
No: None
Absent: None
MOTION DECLARED ADOPTED
City Assessor Powers reported that in accordance with section 211.7u of the Michigan Compiled
Laws, the City of Oak Park has offered a partial poverty exemption, through the Board of Review, to
qualified homeowners. The City of Oak Park has historically averaged less than 20 applicants for
this exemption per year.
On December 23, 2020, the Governor signed Public Act 253 which made additional changes to the
poverty exemption section. The most significant of these changes was revising the guidelines in
calculation of the reduction to the taxable value. If a person meets all eligibility requirements in
statute, the Board of Review must grant a full exemption equal to a 100% reduction in taxable value
OR a partial exemption equal to a 25% or 50% reduction in taxable value OR any other percentage
reduction in taxable value approved by the STC.
Additionally, the State adopted an application for use in applying for a Poverty Exemption. Other
changes exclude the Boards ability to deviate from the policy and guidelines for extraordinary
circumstances. The City’s previous policy also considered an applicant’s state income tax refund
under the Michigan Property Tax Credit (MI1040CR), in determining the amount of reduction in
taxable value. This practice accounted for the fact that income tax refunds, especially for seniors, are
adversely affected if property taxes are decreased. This is no longer allowed.
Upon review of past Board of Review actions reductions in taxable value have averaged close to 50%
for qualifying applicants. The recommended policy adopts that stance. The proposed policy,
application and guidelines are in compliance with PA 253 of 2020.
Communications
(AGENDA ITEM #14D) Event and Activity Update
Communications Director Davis reported upcoming activities and events.
CALL TO THE AUDIENCE: There were no members of the audience who wished to speak.
ADJOURNMENT:
There being no further business to come before the City Council, Mayor McClellan adjourned the
meeting at 8:17 P.M.
T. Edwin Norris, City Clerk Marian McClellan, Mayor