Eaton County commissioners adopted a formal policy governing the county's delinquent tax revolving fund (DTRF), which the treasurer uses to make local units whole when property taxes go unpaid.

Treasurer Reyna and controller's staff briefed commissioners on a formula that averages past delinquent payments (three- or five-year options) and applies a 1.7 multiplier to establish a reserve benchmark. Under the policy, any recommended surplus transfer to the general fund would be calculated by subtracting the reserve benchmark from the current fund balance and would require staff recommendation and board approval.

Treasurer Reyna said the approach balances two goals: maintaining enough cash in the DTRF to avoid borrowing to cover local-unit payments, and allowing the board to declare and transfer a surplus within limits. The treasurer and controller's office said they would collaborate annually to present a recommendation and that they would not recommend transfers that would threaten the fund's ability to pay delinquent taxes.

Commissioners discussed examples and scenarios; staff said the administration would likely recommend no more than $1 million be drawn in the coming budget year, given current uncertainties.

The board approved the policy by voice vote.