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untanglingwebs
El Supremo
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The critical part of the srory is how the shortfall will be deducted from future taxes to be paid to the communities. Kildee left at the right time Here is a Quote from the Deputy treasurer.
Her memo notes that the shortfall in the county’s revolving tax fund will eventually be the shared responsibility of local units of governments, which will share in whatever shortfall remains after March 31, the last day taxes and penalties for the taxes can be repaid before they are lost to the county.
With property tax receipts falling, Genesee County will need in-house loan to pay off bonds
By Ron Fonger | Flint Journal
March 09, 2010, 8:30AM
GENESEE COUNTY -- The county will need a last-minute transfer of up to $3 million to avoid defaulting on bond payments that are due in less than four weeks.
The county Board of Commissioners could act today in an effort to head off the cash-flow problem, which has developed at least in part because so many property owners are walking away from homes and businesses rather than paying taxes and penalties.
As of Feb. 18, there were 5,624 properties still headed into foreclosure, up from 3,882 at the same point last year. Late fees on those properties are used to pay back borrowing that the county does to make sure cities, townships and other taxing entities get all the property taxes up front rather than having to wait for owners to pay tax bills.
Commissioner Ted Henry, D-Clayton Twp., called the short-term borrowing a “sign of the times.”
“I think out hands are tied,” Henry said of the request. “We have to take care of our obligations.”
Chief Deputy Treasurer Jill McKenzie told commissioners in a March 3 memorandum that she needs as much as $3 million from the general fund to pay off bonds, which were purchased almost two years ago.
The county pays back those loans as late payments on property taxes and other liens are made, but this year, with more people ignoring or unable to pay those bills, the county has less money to finish paying the loans.
“I am projecting that the amount to be collected for the ... tax note will not be sufficient to cover the total cost of the (April 1) note payment,” McKenzie said in her memo. “This is a result of more taxpayers not paying their delinquent property taxes and allowing their property to go into tax foreclosure.”
McKenzie would not comment on the situation when contacted by The Flint Journal Monday, saying she wanted to discuss the short-term general fund loan with commissioners first.
Her memo notes that the shortfall in the county’s revolving tax fund will eventually be the shared responsibility of local units of governments, which will share in whatever shortfall remains after March 31, the last day taxes and penalties for the taxes can be repaid before they are lost to the county.
McKenzie is in charge of the treasurer’s office in the absence of Dan Kildee, who retired at the end of 2009. The county Election Commission has been debating whether to fill the position on a short-term basis or leave it vacant until a regularly scheduled election late this year.
The general fund loan is on the agenda of the county board’s finance committee today. McKenzie’s memo doesn’t indicate how much available cash is in the general fund for such a loan.
The Flint Journal could not immediately reach county Controller George Martini for comment or additional information.
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Tue Mar 09, 2010 9:20 am |
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andi03
F L I N T O I D
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| I have a feeling that April Fool's Day will take on a whole new meaning.... |
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Tue Mar 09, 2010 9:35 am |
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LakeWoman50
F L I N T O I D
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| kildee and all of his peoples got out in time |
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Thu Mar 11, 2010 7:38 pm |
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