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.
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