To: Martin L. Cousineau, Finance Committee Chairperson
From: Jeffrey Wright, Drain Commissioner
title
RE: Full Faith & Credit for Wheeler IC Drain #1336 Borrowing
recommendation
BOARD ACTION REQUESTED:
The Drain Commission is requesting a Resolution from the Board by roll call vote, pledging Limited Tax Full Faith & Credit on the Bonds for the Wheeler Inter County Drain Improvement Project.
BACKGROUND:
This Pledge is required to obtain financing for costs incurred and for construction of the Project. The cost of the project will be paid by the Wheeler Inter County Drainage District through special assessment. This inter-County district is within Genesee and Shiawassee Counties. That portion of the Drainage District within Genesee County is responsible for 86% of the total costs of the Project.
DISCUSSION:
Per the Computation of Costs, the project is anticipated to not exceed $920,000.00 ($791,200.00 for Genesee County’s share) and anticipate the annual interest rate not to exceed 6% for a term of 20-years maturing on June 1, 2045.
IMPACT ON HUMAN RESOURCES:
There would not be any impact on Human Resources
IMPACT ON BUDGET:
We anticipated this project and have included it in the FY2024-2025 budget.
IMPACT ON FACILITIES:
There would not be any impact on Facilities
IMPACT ON TECHNOLOGY:
There would not be any impact on Technology
CONFORMITY TO COUNTY PRIORITIES:
Building a drain that alleviate flooding into the future aligns with Genesee County’s vision statement “to provide mandated services while promoting health, safety and long term community needs”.
resolution
TO THE HONORABLE CHAIRPERSON AND MEMBERS OF THE GENESEE COUNTY BOARD OF COMMISSIONERS, GENESEE COUNTY, MICHIGAN
LADIES AND GENTLEMEN:
At a regular meeting of the Board of Commissioners of the County of Genesee held on _______________, 2025.
PRESENT: _______________________________________________________
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ABSENT: _______________________________________________________
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The following resolution was offered by __________________________ and seconded by _________________________:
RESOLUTION RE: Wheeler Intercounty Drain Bonds, Series 2025
WHEREAS, proceedings have been taken by the Drainage Board for the Wheeler Intercounty Drain for improvements to the Wheeler Intercounty Drain (the “Project”) pursuant to a petition filed with the Genesee County Drain Commissioner under the provisions of Chapter 8 of the Drain Code of 1956, as amended (the “Drain Code”); and
WHEREAS, in order to defray the cost of the Project, the Drainage Board has authorized and provided for the issuance by the Wheeler Intercounty Drain Drainage District (the “Drainage District”) of bonds (the “Bonds”) in the aggregate principal amount of not to exceed $920,000, bearing interest at a rate not to exceed 6% per annum, and maturing not later than June 1, 2045, in anticipation of the collection of an equal amount of special assessments against property and public corporations (including the County of Genesee) in the Counties of Genesee and Shiawassee in the Drainage District, said special assessments having been duly confirmed as provided in the Drain Code; and
WHEREAS, the Computation of Cost for the Project sets forth an estimated cost of $920,000, to be allocated among the County of Genesee and the County of Shiawassee as hereinafter provided; and
WHEREAS, 86% of the cost of the Project has been apportioned by the Drainage Board to the County of Genesee and 14% of the cost of the Project has been apportioned by the Drainage Board to the County of Shiawassee; and
WHEREAS, the Drainage Board deems it advisable and necessary to obtain from this Board a resolution consenting to the pledge of the limited tax full faith and credit of the County of Genesee on the Bonds to the extent of special assessments assessed against property and public corporations in the County of Genesee; and
WHEREAS, the Project is necessary to protect and preserve the public health and it is in the best interest of the County of Genesee that the Bonds be sold.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF GENESEE:
1. Pursuant to the authorization provided in Sections 132 and 276 of the Drain Code, the Genesee County Board of Commissioners, by a majority vote of its members elect, does hereby irrevocably pledge the limited tax full faith and credit of the County of Genesee for the prompt payment of the principal of and interest on the Bonds to the extent of special assessments against property and public corporations in the County of Genesee, and does agree that in the event that property owners or public corporations in the County of Genesee shall fail or neglect to account to the Genesee County Treasurer for the amount of any such special assessment installment and interest (in anticipation of which the Bonds are issued) when due, then the amount thereof shall be immediately advanced from County of Genesee funds, and the Genesee County Treasurer is directed to immediately make such advancement to the extent necessary. The ability of the County of Genesee to levy taxes to pay its share of the principal of and interest on the Bonds shall be subject to constitutional and statutory limitations on the taxing power of the County.
2. In the event that, pursuant to said pledge of full faith and credit, the County of Genesee advances out of County funds, any part of the principal of and interest due on the Bonds, it shall be the duty of the Genesee County Treasurer, for and on behalf of the County of Genesee, to take all actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of such sums so paid.
3. The Genesee County Treasurer is hereby authorized, if necessary, to execute a certificate of the County of Genesee to comply with the continuing disclosure undertaking of the County of Genesee with respect to the Bonds pursuant to paragraph (b)(5) of SEC Rule 15c2-12 issued under the Securities Exchange Act of 1934, as amended, and amendments to such certificate from time to time in accordance with the terms of such certificate (the certificate and any amendments thereto are collectively referred to herein as the "Continuing Disclosure Certificate"). The County of Genesee hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate, to do all other things necessary for compliance with Rule 15c2-12 issued under the Securities Exchange Act of 1934, as amended, and to do all other things that are necessary to effectuate the sale and delivery of the Bonds.
4. This resolution shall become effective only if the Board of Commissioners of the County of Shiawassee adopts a resolution substantially in the form of this resolution that pledges the limited tax full faith and credit of the County of Shiawassee to the payment of the principal of and interest on the Bonds when due to the extent of its apportioned share of the cost of the Project.
5. All resolutions and part of resolutions, insofar as the same may be in conflict with the provisions of this resolution, are hereby rescinded.
ADOPTED: Yeas: ___________________________________________________
________________________________________________________
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 of the Genesee County Board of Commissioners at a regular meeting of said Board of Commissioners held on _____________, 2025 the original of which is on file in my office.
I further certify that notice of the meeting was given in accordance with the Open Meetings Act.
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County Clerk
County of Genesee