ADOPTED - APRIL 12, 2005
Agenda Item No. 18
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION REVISING THE POLICY ON TAX SHARING AGREEMENTS
WHEREAS, the Ingham County Board of Commissioners had established a policy for tax sharing agreements on August 22, 1995 (Resolution #95-174) and has now reconsidered the advantages and disadvantages of such captures in the future; and
WHEREAS, the Ingham County Board of Commissioners now wishes to maintain and update a policy regarding whether or not to allow the capture of county property tax revenues within new or expanded development districts under the Local Development Finance Authority Act (LDFA), the Downtown Development Act (DDA), or in other tax authorities or municipalities.
THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners adopts the following revised policy with respect to the capture of county property tax revenues within new or expanded development districts including those under the Local Development Finance Authority Act (LDFA), the Downtown Development Authority Act (DDA), and other tax authorities or municipalities:
1. The County will not permit the capture of county property tax revenues in any new or amended development district unless the Ingham County Board of Commissioners has approved a tax sharing agreement with the affected development district and the affected municipality.
2. Except as otherwise provided in this resolution for high technology activities, the County will only consider the approval of a tax sharing agreement that meets the following conditions:
a. The agreement must be for specifically defined public infrastructure projects which are directly related to the economic growth within that district. Economic growth is understood to be the creation, retention, and expansion of jobs and income.
b. Specifically defined public infrastructure projects must be for specific items of work, each of which is limited to a specific maximum dollar amount to be completed within a specified time period. The agreement shall specify the maximum amount of captured property tax revenues and the time over which those revenues may be captured. It shall also specify that any excess collections must be returned to the County Treasurer annually.
c. The affected jurisdiction must allow the capture and expenditure of its property tax revenues for the same period of time during which the County tax revenues are being captured and expended in the district.
d. If tax revenue is generated faster than anticipated due to growth within the district exceeding initial projections, the additional revenues may be used to decrease or call any bonds or other debt obligations related to the projects approved by the tax sharing agreement in proportion with funds from other taxing jurisdictions.
ADOPTED - APRIL 12, 2005
Agenda Item No. 18
3. The County recognizes that some economic development projects may not be strictly public infrastructure and will consider other project proposals related to high technology activities as defined in section 3 of the MEGA legislation, PA 124 of 1995 (MCL 207.803) as necessary.
4. The County Economic Development Corporation is designated as the county agency responsible for evaluating requests for the capture of county property tax revenues as to conformance with this policy, and shall recommend approval or disapproval of any such proposed agreement to the Board of Commissioners.
THEREFORE BE IT RESOLVED, that upon receipt of a request for the capture of county property tax revenues, a copy of that request shall be forwarded to the County Economic Development Corporation for review and comment and a resolution responding to the request as provided by this policy will be placed on the appropriate committee agendas for consideration and final action by the Board of Commissioners within the sixty (60) day statutory requirement.
BE IT FURTHER RESOLVED, that the County Commissioners may also consider other relevant issues regarding the agreement proposal including the possible environmental impact of the projects proposed in the agreement.
BE IT FURTHER RESOLVED, that a copy of any approved agreement shall be provided to the County Treasurer who shall take the necessary steps to assure that captured property tax revenues collected in excess of the amounts permitted by the agreement are returned to the County on an annual basis.
BE IT FURTHER RESOLVED, that an initial rejection by the Board of Commissioners of such a request may be rescinded if and when a tax sharing agreement that meets the conditions of this policy is reached.
BE IT FURTHER RESOLVED, that Resolution # 95-174 is rescinded and replaced by this resolution.
COUNTY SERVICES: Yeas: Celentino, Copedge, De Leon, Severino
Nays: Schor Absent: Vickers Approved 4/5/05
FINANCE: Yeas: Dedden, Swope, Hertel, Dougan
Nays: Schor, Thomas Absent: None Approved 4/6/05