Stories indexed with the term ‘borrowing against delinquent taxes owed’

Washtenaw County board of commissioners meeting (March 19, 2014): Budget and finance issues were the focus of several items at the March 19 meeting, including a report that the county saw a $3.92 million surplus for its general fund in 2013. The county’s fiscal year is the same as the calendar year. Total general fund revenues were $105.797 million, with total expenses of $101.876 million.

The board also heard from county treasurer Catherine McClary, who reported that foreclosures are decreasing, as are delinquent taxes. Delinquent taxes are a leading economic indicator for both mortgage foreclosures and tax foreclosures, she noted, so the decreases are good news. Commissioners gave initial authorization to the treasurer’s office to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions, an annual process.

Commissioners also authorized the county administrator to hire a contract employee who will support budget-related work this year for the county board and administration. The vote came over dissent from Rolland Sizemore Jr., who felt the work could be absorbed by existing staff.

The budget was also the focus of an update from lobbyist Kirk Profit and his colleague Gary Owen at Lansing-based Governmental Consultant Services Inc., who talked about how action in the state government might impact Washtenaw County. GCSI is the lobbyist for the county and several other local governments, including the city of Ann Arbor. Their updates included the fact that legislation has been introduced to repeal Act 88, which the county uses to levy taxes for economic development and agriculture. This year, the county has budgeted $973,000 in revenues from an Act 88 levy.

In other action, the board appointed former Superior Township supervisor Bill McFarlane to the county road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014.

Commissioners supported McFarlane, but also discussed the possibility of changing the process so that interviews with applicants would be held at a public meeting. Yousef Rabhi (D-District 8), who as board chair makes these nominations, described the process of nominating a new road commissioner as a difficult one, and highlighted the need for a five-member road commission. Currently the road commission board consists of three members. It’s an issue that Rabhi plans to bring up at an April 17 working session.

The board also took a step toward allowing employees to get health insurance coverage for the treatment of autism. Commissioners gave initial approval that would authorize adding an Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits.

And a resolution to oppose a mineral mining operation in Lyndon Township drew criticism from Dan Smith (R-District 2), who objected to the county board weighing in on an issue that’s not within its purview. Other commissioners felt the county had a vested interest in formally voicing an opinion, both because of broader economic and environmental impacts that would affect residents, and because the county parks & recreation commission owns property in the township. Smith’s decision to state “present” – rather than casting a yes or no vote – resulted in brief discussion about board rules. [Full Story]

In an annual action to help the cash flow of local governments in Washtenaw County, the county board of commissioners gave initial authorization to county treasurer Catherine McClary to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. The action took place at the board’s March 19, 2014 meeting, with a final vote expected on April 2.

It’s a standard practice to help the local jurisdictions manage their cash flow. The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy. Last year, the board authorized borrowing up to $40 million. [.pdf of delinquent tax resolution]

After March 1, taxing jurisdictions – including cities, townships, … [Full Story]

Washtenaw County commissioners gave final authorization to county treasurer Catherine McClary to borrow up to $40 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. [.pdf of delinquent tax resolution] The action took place at the county board’s Feb. 20, 2013 meeting, following initial approval on Feb. 6, 2013.

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 … [Full Story]

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 … [Full Story]

Washtenaw County board of commissioners meeting (March 21, 2012): Public health, welfare and budget issues dominated the most recent county board meeting, which began with a briefing on the aftermath of a March 15 tornado touchdown in the Dexter area.

Pat Kelly, Dexter Township supervisor, attended the meeting along with Mark Ouimet, a former county commissioner who is now state representative for District 52, which includes the Dexter area. Both thanked the county for its support and praised county staff – from sheriff’s deputies who provided security, to parks workers and others who helped with cleanup.

Later in the meeting, the board unanimously approved up to $500,000 from capital reserves to fund disaster relief and assistance to residents, including overtime costs for staff and payment for dumpsters to haul away debris. County administrator Verna McDaniel said that full amount might not be used, but it’s also possible that she’ll return to ask for more funding if it’s needed.

The board received a budget update for 2011 from finance staff, with the caution that minor changes might be made after an audit is completed. Although the originally approved budget had anticipated needing to use more than $5 million from the county’s general fund balance, only about $800,000 was actually used for the year – significantly less than expected.

Also related to the budget, the board authorized the county treasurer, Catherine McClary, to borrow up to $45 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. This is a standard request at this time of year as taxing jurisdictions – including cities, townships, schools systems and libraries, among others – turn their delinquent taxes over to the county, and are reimbursed for that delinquent amount. The county treasurer then assumes responsibility for collecting the delinquent taxes.

McClary noted that delinquent taxes are a leading economic indicator, and in that respect the trend is positive. This year, there is a drop in delinquent taxes for the first time since 2005. All jurisdictions saw a decrease, she said, and that’s really good news for the economy. McClary also gave her annual treasurer’s report for 2011, noting that revenues earned from delinquent taxes and fees totaled $5.557 million – about $3 million more than had been budgeted.

Also at the March 21 meeting, the board took a first step toward becoming a charter member of the Washtenaw Health Initiative (WHI), an effort to expand health care coverage for the county’s low-income residents. The membership includes a $10,000 annual fee in both 2012 and 2013, which would be funded through the county’s office of community and economic development. The 8-1 vote included dissent from Alicia Ping, who said she preferred funds to go directly to services, not for administrative purposes. Barbara Bergman was absent and Ronnie Peterson was out of the room when the vote was taken.

Among its other action items, the board gave final approval to creation of a county food policy council, and to an increase in certain fees charged by the public health department.

As an item for future discussion, several commissioners raised concerns over the issue of hydraulic fracturing – known as “fracking” – in rural parts of the county, to access oil or gas. Paxton Resources, a Gaylord, Mich.-based firm, has been acquiring mineral rights in the county’s rural areas for several months. A group of local residents called “No Paxton” has formed to oppose the company’s actions. The board discussed the possibility of a resolution urging more state oversight of the practice, and will likely schedule a working session on the issue. [Full Story]

A resolution authorizing the county treasurer to borrow up to $45 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions was given unanimous approval by the Washtenaw County commissioners at their March 21, 2012 meeting.

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 told the board that … [Full Story]

At its Feb. 16, 2011 meeting, the Washtenaw County board of commissioners passed a resolution permitting the county treasurer to borrow against the amount of delinquent property taxes in all 80 taxing jurisdictions throughout the county, including cities, townships, schools systems and libraries, among others. After March 1, these jurisdictions 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.

In a cover memo accompanying the resolution, county treasurer Catherine McClary reported that the amount of delinquent taxes turned over to her office for collection has more than doubled in the past seven years. And for the last two years, the county was not able to self fund the delinquent taxes. McClary expects a small increase in delinquent taxes this year, but asked to borrow the same amount as last year – an amount not to exceed $50 million. However, she expects interest rates to be higher this year than last year, due to the tightening credit markets.

This brief was during the county board of commissioners meeting at the Washtenaw County administration building. A more detailed report will follow: [link] [Full Story]