8/20/13 - Representatives from the Livingston County Board of Commissioners presented a plan to the Handy Township Board last night to pay off the millions of dollars the township owes to the county. In the recent economic downturn, some developers walked away from projects I Handy Township, leaving behind unpaid taxes and special assessment district bonds. As is usual for unpaid taxes, the county stepped up and provided the township with the unpaid balance, effectively buying the delinquent taxes. The county would then typically try to collect the taxes to make back its money, and whatever it could not recover that way would be made up by selling off the properties at tax sale. However, if the county still has not made back the money it gave the township, the township would have to pay back the balance plus interest. Because the developers in this case are either bankrupt or currently in litigation with the municipalities, the county has not been able to recoup $2.5 million worth of unpaid taxes. The two municipalities have been working together to concoct a plan to help the township pay off this debt as well as about $1 million in interest. The county presented a plan to the township last night. It would involve the township paying $1.2 million out of its fund balance, taking a low-interest $2 million loan from the county, and putting a 1.5 mill property tax on the next election ballot. The county would also slash the interest rate on the unpaid taxes in half, saving the township $500,000. Some members of the board were receptive to the plan, while others were openly against it, and in the end no action was taken. The county warns that if the township does not put a plan in place to pay off the debt, the county treasurer will be obligated to attempt to collect, and the issue would move on to the courts. This could result in an financial manager being assigned to the township, and officials say a millage levied by such a manager would be several times larger than the one proposed under the deal. (TD)
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