Finance committee authorizes Emmons Lake Drainage District bond issuance up to $4.5 million

The Kent County Board of Commissioners Finance Committee authorized the Emmons Lake Drainage District to issue bonds (Series 2025) to finance specific intercounty drain improvements, with bond proceeds limited to an amount not to exceed $4,500,000.

Meeting materials cited Act 40, Public Acts of Michigan 1956, as amended, as the statutory authority for drain improvements. The proposed resolution authorizes the pledge of the county's limited tax full faith and credit as backup security on the bonds and directs the county treasurer, county administrator and board chair to execute disclosure certificates and portions of the official statement necessary to close the issuance.

Bond counsel Roger Swetz explained the repayment mechanism: the cost of the project is specially assessed to benefited properties and public corporations. Some municipal assessments may be prepaid; the county's at-large amount of $214,000 will be paid in FY2025, and bonds will ultimately be issued only for outstanding assessments. "Those assessments then that are not prepaid would be payable over time over the length of the bonds," Swetz said, adding that assessments are billed each Dec. 1 on the tax bill with interest at the bond rate (or up to 1% over the bond rate to provide cushion). He said delinquent collections would follow the normal county delinquent tax collection process.

Commissioner Oliver King moved the recommendation; Commissioner Green supported it. The committee approved the motion by voice vote. Staff anticipates closing on the bonds in June 2025, per the meeting materials.

Details: bond proceeds will pay for improvements in the Emmons Lake Drainage District and a special assessment district established by the drain; principal and interest will be payable from the special assessments to benefited properties and public corporations.