County reports roughly $6.8M interest reduction from drain financing, outlines homeowner relief plans
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Summary
County staff told commissioners that financing choices, a state grant and an ARPA allocation reduced the Bank intercounty drain project’s interest burden by an estimated $6.8 million and lowered annual payments by roughly $392,000; staff said they are pursuing ways to return appropriations to homeowners who prepaid assessments.
County staff presented a final analysis of the Bank intercounty drain financing and said several county actions reduced the county’s share of interest and annual payments.
Deputy Administrator/Human Resources Director Ben and finance staff explained the county allocated $3.3 million of American Rescue Plan Act (ARPA) funding to the project, secured a state grant of approximately $5.0 million and arranged a county bond offering rather than bonding through the drainage district. Staff said those steps together lowered projected interest on the project by about $6.8 million and reduced the county’s annual payment by roughly $392,000.
Ben and finance staff outlined the components staff attributed to the savings: - ARPA allocation: $3.3 million applied to the project. - State grant: $5.0 million secured (staff said about $493,000 of that reduced the county’s assessment directly). - Direct county bond issuance and shorter amortization period (20 years vs. 30 years) reduced interest costs and shortened payoff, producing estimated savings in interest and annual payments. - A GIS review and recalculation trimmed the county’s apportionment from a proposed rate above 24 percent to 21 percent, representing a principal decrease on county assessment by roughly $2.0 million.
Staff estimated a total interest reduction of about $6.8 million and a reduction in annual payment of about $392,000; they cautioned these are estimates and that final distributions depend on project costs and any future appropriations.
Homeowner relief and prepaid assessments: Commissioners asked whether future appropriations or grants would benefit homeowners who prepaid assessments. Finance Director Melissa said the county would ask the assessment administrator (Spicer) for a parcel‑level breakdown so that any future appropriation intended to provide relief could be applied proportionally to all owners, including those who prepaid; that approach could require issuing checks to prepaid homeowners.
Construction status and timing: Staff said construction activity in the district is underway. Commissioners expressed sympathy for homeowners facing large assessments and said they would continue to pursue relief from state appropriations if available.
Why it matters: The drain project affects property assessments and household costs in parts of Eaton County. Staff said the county’s financing choices reduced interest and payment load for county taxpayers but acknowledged many homeowners in the drainage district still face significant assessments.
Next steps: Staff will continue to track construction and project costs, work with Spicer to get parcel‑level breakdowns if additional appropriations arrive, and coordinate with state legislative staff on potential relief appropriations.