County OKs 2013 Delinquent Tax Borrowing

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 fund operations for the first half of the year.

This year, the estimated amount of delinquent taxes is about $25 million, though McClary told commissioners on Feb. 6 that she expects the amount to be lower than that. The exact amount won’t be determined until the middle or end of March. The notes will likely be issued in April or May, she said. McClary also pointed out that the resolution limits the amount that can be borrowed to $40 million, down from a limit of $45 million last year.

This brief was filed from the boardroom of the county administration building at 220 N. Main. A more detailed report will follow: [link]