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untanglingwebs
El Supremo
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The Detroit News
Metro and State
Wayne County
May 28, 2014 at 1:00 am
Wayne Co. officials spar over millions in treasurer's fund
Steve Pardo
The Detroit News
Auditor General Willie Mayo said Wednesday that Treasurer Ray Wojtowicz has millions of dollars in excess in the county's delinquent tax revolving fund. (David Coates / The Detroit News)
Detroit — The Wayne County Treasurer’s Office has agreed to transfer $150 million to bail out the county from its accumulated debt but officials are squabbling over who should control another $38 million.
Auditor General Willie Mayo said Treasurer Ray Wojtowicz has millions of dollars in excess in the county’s delinquent tax revolving fund.
The fund began in 1977 and Mayo contends it should be controlled by the Wayne County Commission. Aides to Wojtowicz disagree, saying they need to control the money to continue lending programs that help county communities.
“We understand your responsibility and we hope you understand ours,” David Szymanski, chief deputy treasurer, told county commissioners at a audit committee meeting Wednesday. “We’re responsible to operate this fund and we do so as judiciously as possible.”
The fund involves the treasurer’s office collecting all delinquent property taxes for municipalities. The office borrows money to float to communities, then collects interest, fines and fees from delinquent taxpayers. Over the years, the treasurer has collected tens of millions in surplus and has been holding on to the money.
Treasury officials contend the surplus — pegged at $188 million by Mayo — was needed to secure favorable borrowing rates.
“We were holding onto the $82 million in reserves for years as collateral, believing they needed the money to be able to continue to borrow,” Szymanski said.
Treasury officials learned in May the reserves could be reduced without significantly impacting borrowing. The discovery came three months after Executive Robert Ficano’s deficit elimination plan called for the treasurer to part with $82 million to help reduce the county’s $175 million accumulated deficit and $30 million average annual deficit.
The treasury department agreed last week to bump that amount to a total of $150 million.
“This would change the entire game,” said Commissioner Diane Webb, D-Dearborn Heights.
Mayo’s department contends there is still more that should fall under the control of county commissioners. Both sides agreed to allow attorneys to hammer out who should control the money.
“We disagree but we can work together,” Wojtowicz told commissioners.
spardo@detroitnews.com
From The Detroit News: http://www.detroitnews.com/article/20140528/METRO01/305280085#ixzz336Y69trS
Last edited by untanglingwebs on Tue Sep 16, 2014 7:22 am; edited 2 times in total |
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Thu May 29, 2014 6:56 am |
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untanglingwebs
El Supremo
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Judge rules in favor of Genesee County Treasurer Deb Cherry on how delinquent tax funds are handled
Print Amanda Emery | aemery@mlive.com By Amanda Emery | aemery@mlive.com
on May 08, 2014 at 7:49 PM
GENESEE COUNTY, MI – Genesee County Treasurer Deb Cherry can spend delinquent tax funds to maintain tax-foreclosed property and she can determine how much of the surplus county government gets, a judge has ruled.
The County Board of Commissioners sued Cherry over her handling of the fund.
Because Genesee County 7th Circuit Court judges had recused themselves, Lapeer County Judge Nick O. Holowka ruled Wednesday, May 6, that as treasurer the law allows her to spend delinquent tax funds, which come from penalties collected by her office from property owners who are late in paying taxes, to maintain tax-foreclosed properties. Cherry can also set the surplus amount the county gets once the maintenance funds and bonds are paid, and when they will receive that money, she said.
"Basically, the judge ruled that, yes, I have the authority under the constitution and law to spend funds for maintenance of properties that we are foreclosing on," Cherry said. "That I don't need the county's approval on it, that I'm the one that determines the surplus on it, and I believe also that I'm the one that determines when that surplus is available, because it's after we pay off the bonds."
The commissioners sued Cherry claiming she was funding the county Land Bank inappropriately and illegally.
The two sides decided a "friendly lawsuit" would likely be the least expensive way to settle the issue of Cherry's authority. Taxpayers footed the bill on both sides of the argument, as the commissioners agreed on May 1, 2013, to pay the fees of an attorney for Cherry.
The treasurer said the law allows her to spend the funds to maintain tax-foreclosed properties before they are sold at auction or transferred to the Land Bank, while commissioners had maintained their approval of the spending is required.
"Now, I will be able to do my job without the County Board saying 'No you can't do it.'" Cherry said. "But that doesn't mean that you shouldn't work with people. It means we're, the Land Bank, folks that are involved in property foreclosure and maintenance will be able to do what we need to do to fight blight in our community and that's one of the most important things that we can do."
Previously, commissioners have used proceeds from the same delinquent tax funds to help balance the general fund budget for several years, while Cherry has said not enough has been set aside for cutting grass and keeping the properties boarded shut and secure.
County board Chairman Jamie Curtis declined to comment on the ruling until the board has had the opportunity to meet with its lead counsel on what it means for Genesee County.
The issue of Cherry's authority to spend the funds flared early 2013 after the treasurer made two payments worth $335,000 to the county Land Bank without asking for the commissioners' blessing.
Amanda Emery is a police reporter for MLive-Flint Journal. Contact her at aemery@mlive.com or 810-285-0792. Follow her on Twitter or Facebook. |
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Thu May 29, 2014 7:02 am |
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untanglingwebs
El Supremo
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| Cherry won and the county appealed. Now the commissioners want to cut a deal and don't want to define the deal. Go Cherry! |
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Tue Sep 16, 2014 7:21 am |
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