To: Martin L. Cousineau, Finance Committee Chairperson
From: Jeffrey Wright, Drain Commissioner
title
RE: Approval of the Kearsley Creek Grandview Branch Drain Note in an amount not to exceed $205,000.00; the cost of this Note will be paid by special assessment of the drain district
recommendation
BOARD ACTION REQUESTED:
The Genesee County Drain Commissioner has determined that there is a need for the construction of improvements to the Kearsley Creek, Grandview Branch (#1702). The estimated total cost of these improvements is $205,000.00. To reduce costs to the district, it has been determined that it would be in the best interests of all parties if Genesee County purchases the Drain Note. The current annual percentage rate that Genesee County is receiving for cash investments is 3.5% and that amount will be used for the interest rate on the note. The Note will be paid back over Ten years.
BACKGROUND:
Drain Projects pursuant PA 40 of 1956 the “Drain Code “ have to be financed and paid back through special assessments. In the past we have borrowed from Genesee County for other projects and ask for approval to do so again.
DISCUSSION:
In the current environment, many banks have been asking for full faith and credit on all borrowings not just large bonds. Drain districts pay for the borrowings through special assessments and are very safe. Loaning the Drain district the money for this project is a tax-free way for the County to earn interest on unused funds and benefits all.
IMPACT ON HUMAN RESOURCES:
No impact on Human Resources
IMPACT ON BUDGET:
Money will be borrowed and paid back with interest over 10-years
IMPACT ON FACILITIES:
No impact on Facilities
IMPACT ON TECHNOLOGY:
No impact on Technology
CONFORMITY TO COUNTY PRIORITIES:
Drain Projects promote safe communities and by borrowing from the County, the drain district is able to avoid costs associated with public finance bidding.
resolution
TO THE HONORABLE CHAIRPERSON AND MEMBERS OF THE GENESEE COUNTY BOARD OF COMMISSIONERS, GENESEE COUNTY, MICHIGAN
At a ____________ meeting of the Board of Commissioners of the County of Genesee,
Michigan, held on ______________, 2025
PRESENT: _______________________________________________________________
_______________________________________________________________
_______________________________________________________________
ABSENT: _______________________________________________________________
_______________________________________________________________
The following resolution was offered by _________________________ and seconded by
______________________________.
Resolution re: Kearsley Creek, Grandview Branch Drain Note, Series 2025
WHEREAS, proceedings have been taken by the Genesee County Drain
Commissioner for the construction of improvements to the #1702 Kearsley Creek, Grandview Branch Drain (the “Project”) under the provisions of Chapter 4 of the Drain Code of 1956, as amended, pursuant to a petition filed with the Drain Commissioner; and
WHEREAS, the project was recently bid and a computation of costs were compiled which estimates a total project cost of $205,000.00; and
WHEREAS, the cost of the Project will be paid by special assessments levied by
the Drain Commissioner against benefiting property owners and public corporations in the Drainage District, including Atlas Township and Village of Goodrich, with those special assessments not being prepaid to be payable in 10 approximately equal annual installments, together with interest on the outstanding principal balance of
the special assessments; and
WHEREAS, the Drainage District intends to issue a note (the “Note”) pursuant to
Section 434 of the Drain Code to finance part of the cost of the Project in anticipation of the collection of installments of the special assessments that are not being prepaid and
WHEREAS, in order to reduce interest rate costs to the property owners and public corporations in the Drainage District, the Drain Commissioner has proposed that the County purchase the Note from available funds on deposit in County Fund 1010-000.00-001.000.
NOW, THEREFORE, BE IT RESOLVED BY THIS BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF GENESEE:
1. The County agrees to purchase the Note from available funds on deposit in the County Fund 1010-000.00-001.000. The principal amount of the Note shall not exceed $205,000.00 and the interest rate on the Note shall be 3.50% per annum.
2. If the Drain Commissioner determines that it is not necessary to issue the Note in the principal amount of Two Hundred five Thousand Dollars ($205,000.00) because of prepayments of special assessments by one or more property owners or public corporations or a reduction in the Computation of Costs or otherwise, he may by order reduce the principal amount of the Note to be sold to that amount deemed necessary.
3. The County Treasurer and the Controller/Chief Financial Officer are authorized to effectuate respective transfers and budget amendments deemed necessary to accomplish the purposes of this resolution.
4. All resolutions and parts of resolutions, insofar as the same may be in conflict with the provisions of this resolution, be and the same hereby are rescinded.
ADOPTED: Yeas:
______________________________________________________________
______________________________________________________________
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Nays:
______________________________________________________________
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STATE OF MICHIGAN )
)SS
COUNTY OF GENESEE )
I the undersigned, the duly qualified and acting County Clerk of the County of
Genesee, do hereby certify that the foregoing is a true and complete copy of a
resolution adopted by a majority vote of the members elect at a _________ meeting
of the Genesee County Board of Commissioners, held on __________________,
2025, the original of which is on file in my office.
I further certify that a notice of the meeting was given and the meeting was
conducted in accordance with the Open Meetings Act.
________________________________
County Clerk