To: Martin L. Cousineau, Finance Committee Chairperson
From: Jeffrey Wright, Genesee County Drain Commissioner
title
RE: Approval of Genesee County Drain Commissioner to borrow $1,753,000.00 for 3-years from Genesee County for Drain expenses
recommendation
BOARD ACTION REQUESTED:
Approval of Genesee County Drain Commissioner to borrow $1,753,000.00 for 3-years from Genesee County for Drain expenses. Money to be taken from General fund and transferred to Drain funds. Money to be paid back per attached schedule although money can be used for any drain and not just those specifically listed.
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. We have several petitions with preliminary costs that we cannot assess until the projects are ready for construction in the amount of $806,700. We also have Several Maintenance jobs that have exceeded maintenance limits due to either emergency work or resolution to exceed by the Municipalities. It will take 2 to 3 years to payoff these drains in the amount of $946,300.
DISCUSSION:
Drain districts pay for the borrowings through special assessments and are considered very safe investments. Loaning the Drain districts the money for these projects is a way for the County to earn interest on unused funds. In this borrowing, the Petition jobs would be interest only until we do a final borrowing or the 3-years is up. The maintenance would be paid back in principal + interest over the 3-years or sooner.
IMPACT ON HUMAN RESOURCES:
No impact on Human Resources
IMPACT ON BUDGET:
Money will be borrowed and paid back with interest over 3-years.
IMPACT ON FACILITIES:
No impact on Facilities
IMPACT ON TECHNOLOGY:
No impact on Technology
CONFORMITY TO COUNTY PRIORITIES:
This addresses long term financial stability by funding necessary costs.
resolution
TO THE HONORABLE CHAIRPERSON AND MEMBERS OF THE GENESEE COUNTY BOARD OF COMMISSIONERS, GENESEE COUNTY, MICHIGAN
LADIES AND GENTLEMEN:
Resolution re: Interim borrowing for Drain expenses Note, Series 2026
WHEREAS, proceedings have been taken by the Genesee County Drain Commissioner for the maintenance and preliminary costs for various County Drains; and
WHEREAS, a computation of costs was compiled that estimates a total cost of $1,753,000.00; and
WHEREAS, the cost of the Projects will be paid by special assessments levied by
the Drain Commissioner against benefiting property owners and public corporations in each Drainage District, including Genesee County and various Municipalities and the State of Michigan, with those special assessments to be payable in 3 annual installments, together with interest on the outstanding principal balance of the special assessments; and
WHEREAS, the Drainage District intends to issue notes (the “Notes”) pursuant to
Section 434 of the Drain Code to finance part of the cost of the Projects in anticipation of the collection of installments of the special assessments; 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 Notes from available funds on deposit in County Fund 1010-000.00-001.002.
NOW, THEREFORE, BE IT RESOLVED, by this Board of County Commissioners of Genesee County, Michigan, that:
1. The County agrees to purchase the Notes from available funds on deposit in the County Fund 1010-000.00-001.002. The principal amount of the Notes shall not exceed $1,753,000.00 and the interest rate on the Notes shall be 3.85% per annum.
2. The County Treasurer and the Chief Financial Officer are authorized to effectuate respective transfers and budget amendments deemed necessary to accomplish the purposes of this resolution.
3. All resolutions and parts of resolutions, insofar as the same may be in conflict with the provisions of this resolution,shall be and the same hereby are rescinded.