Washtenaw County commissioners have given initial authorization to the county treasurer to borrow up to $40 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. The unanimous vote took place at the county board’s Feb. 6, 2013 meeting, with a final vote expected on Feb. 20.
After March 1, taxing jurisdictions – including cities, townships, schools systems and libraries, among others – turn their delinquent taxes over to the county, and are reimbursed for that amount. The county treasurer then assumes responsibility for collecting these delinquent taxes. This is a standard procedure that’s conducted annually at this time of year. The borrowed funds are used for cash flow purposes, to fund operations for the first half of the year.
County treasurer Catherine McClary projects needing to much borrow less than the $40 million authorized – likely about $25 million. [.pdf of delinquent tax resolution]
During the Feb. 6 meeting, McClary also gave the board a year-end report for 2012. Her office brought in $9.96 million during the year from the following sources: delinquent taxes and fees ($5.046 million), accommodation tax ($4.067 million), investment earnings ($755,681), dog licenses ($59,748) and tax searches ($31,760). McClary also reported that the county’s investment portfolio totaled $156.08 million at the end of 2012. The non-cash portion of that amount is $147.855 million, which brought in an average weighted yield of 0.456%.
This brief was filed from the boardroom of the county administration building, 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]