The Eaton County Ways & Means Committee convened on June 14, 2025, to discuss several key financial policies, with a primary focus on the Delinquent Tax Fund policy. The meeting highlighted the importance of maintaining sufficient reserves in the Delinquent Tax Revolving Fund, which is essential for reimbursing local governments for unpaid taxes.

Treasurer Reyna presented the policy, emphasizing its role in ensuring that the county can cover delinquent taxes without resorting to borrowing, which could negatively impact the county's credit rating. He explained that the fund, also referred to as the 100% tax payment fund, is crucial for making local units whole, as it typically involves millions of dollars each year.

The proposed policy aims to balance the need for adequate reserves while allowing for the declaration of a surplus that can be utilized by the county commission. The committee discussed a formula developed with legal counsel to determine how much money could be safely transferred from the fund to the general fund without jeopardizing the county's financial stability. This formula considers historical delinquent tax settlements and applies a multiplier to ensure that sufficient funds remain available for future needs.

Commissioner Haskell raised questions about the implications of transferring funds from the Delinquent Tax Fund, particularly regarding potential impacts on interest revenue and the county's ability to pay delinquent taxes in subsequent years. The Treasurer reassured the committee that the policy is designed to prevent excessive withdrawals that could harm long-term financial health.

The committee also reviewed past practices, noting that historically, the county has used $500,000 to $1 million from the fund as a revenue source for the general fund without a formal policy. Moving forward, the committee agreed to limit future transfers to no more than $1 million to avoid financial instability.

Additionally, the committee clarified the distinction between the Delinquent Tax Fund and the Foreclosure Fund, with the former focused on reimbursing local governments for unpaid taxes and the latter dealing with properties that have not been paid for and may be sold at auction.

In conclusion, the meeting underscored the committee's commitment to sound financial management and the importance of adopting a formal policy for the Delinquent Tax Fund to ensure the county's fiscal health while meeting the needs of local governments. The committee plans to review and adopt the proposed policy in the near future.