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Clare County board approves notice to publish intent for $10M road commission bond and signs related contracts
Summary
Commissioners voted to adopt a resolution to publish notice of intent to issue limited tax general obligation bonds to finance a new road commission facility, approved legal and advisory contracts related to the bond process, and passed a set of routine motions including expenditures, a committee appointment and a fee increase for animal services.
The Clare County Board of Commissioners voted to adopt a resolution authorizing publication of a notice of intent to issue limited tax general obligation bonds to finance a proposed replacement for the county road commission building.
Eric McLaughlin, a partner at Dickinson Wright, described the resolution as the first of two formal steps needed to issue bonds under the state statute referenced in the presentation, explaining it would publish notice of intent and trigger the period for potential referendum requests. "This resolution is the first of two formal steps...it authorizes the publication of notice of intent to issue bonds under Michigan's act 34," McLaughlin said.
Andy Campbell, a registered municipal adviser with Benz and Company, reviewed financing options and said a public municipal bond would likely offer better terms than a USDA loan or a private bank sale. The project cost was described by presenters as approximately $10,000,000 and, as explained to the board, the plan was to structure repayment within the road commission's budget without a new county tax; advisers indicated an anticipated 30-year structure and provided a conservative interest-rate estimate in the 4–4.25% range.
The board adopted resolution 24-19 to publish notice of intent and approved contracting municipal financing advisers to manage the competitive sale process. Commissioners also approved an agreement with Dickinson Wright to serve as legal counsel for the county in the bond issuance process.
Separately during the meeting the board approved routine items including the September expenditures (totaling $3,461,070.36 with a general fund portion of $851,537.68), a motion to raise the euthanasia fee from $45 to $55 citing rising drug costs, appointment of Keith Hayes to the materials management committee, and renewal of a master services agreement with MGP Impact Solutions LLC for the county's annual cost allocation plan.
Votes and next steps: the bond notice adoption and related contracts passed by roll call at the meeting; staff will proceed with the publication of notice and prepare the subsequent bond-authorizing resolution and sale process if no referendum is filed.
