AG 2002 08 19 (Regular) - Laserfiche WebLink

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Resolution No. 2002- A RESOLUTION TO AUTHORIZE A LAWSUIT TO RECOVER REIMBURSEMENT AND RECEIPT OF REVENUE DUE THE COUNTY OF CABARRUS BEING ILLEGALLY WITHHELD BY THE STATE OF NORTH CAROLINA WHEREAS, the 641 towns, cities and counties of North Carolina have long depended on tax revenues to which by law they are entitled upon collection by the Secretary of Revenue, and the General Assembly until now has historically held local governments harmless by appropriated reimbursement when one or more local revenue sources is diminished or eliminated; and WHEREAS, local government revenues for FY 2001-2002 were withheld illegally for FY 2001-2002 by the Secretary of Revenue and it appears the Governor will order the Secretary to withhold FY 2002-2003 local revenues due to be paid beginning September 15, 2002 and otherwise; and WHEREAS, no administrative remedy exists to correct the illegal conversion of the local revenues and a genuine controversy exists about proper interpretation of the law as to the ownership of the local tax revenues, and enactment of the pending clarifying legislation favoring local governments will likely not be enacted; and WHEREAS, the General CoUrt of Justice is the sole, proper and independent branch of government to make a final legal determination of the rights of the respective parties. THEREFORE, BE IT RESOLVED, that Cabarrus County hereby authorizes its County Manager and County Attorney to retain Boyce & Isley, PLLC, of Raleigh, N.C., at a cost not to exceed $1,000.00 with all other fees, costs and expenses of litigation, if any, paid on a contingency basis not to exceed fifteen percent (15%) of any total monetary recovery by settlement or judgment or as may be ordered by the Court. Outside counsel will agree to prosecute a civil action in Wake County Superior Court to have declared the legal rights of local government to recover past tax revenues and reimbursements withheld and to enjoin withholding of future tax revenues as above set forth. Adopted this the 19th day of August, 2002. ATTEST: Robert M. Freeman, Chairman Board of Commissioners Frankie F. Bonds, Clerk to the Board