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Shiawassee County pledges limited-tax backing for Youngs Intercounty Drain bonds
Summary
The Shiawassee County Board on March 11 approved Resolution #26-03-04 to pledge the county's limited-tax full faith and credit for its apportioned share (up to $1,271,850) of bonds to fund Youngs Intercounty Drain improvements; the motion passed 6-1.
The Shiawassee County Board of Commissioners on March 11 approved a resolution pledging the county's limited-tax full faith and credit for its apportioned share of bonds to finance improvements to the Youngs Intercounty Drain.
The motion to approve Resolution #26-03-04 was moved by Commissioner Brad Howard and seconded by Commissioner Bill Johnson. The roll-call vote was six in favor and one opposed; Commissioner Gary Holzhausen cast the lone nay.
The resolution states that the Drainage Board estimated the project cost at $2,085,000 and apportioned 39.0% of the cost to Saginaw County and 61.0% to Shiawassee County. The Shiawassee County share cited in the board motion is "not to exceed $1,271,850," which corresponds to 61% of the estimated project cost. The resolution authorizes issuance of bonds for the drainage district in an aggregate principal amount not to exceed $2,085,000, with interest not to exceed 6% per year and maturity not later than June 1, 2046.
Under the language adopted, the county irrevocably pledges its limited-tax full faith and credit to the prompt payment of principal and interest to the extent of special assessments apportioned to property and public corporations in Shiawassee County. The resolution directs the county treasurer to advance county funds if property owners or public corporations fail to pay apportioned assessment installments when due and to pursue reimbursement by all remedies authorized by law.
The resolution also authorizes the county treasurer to execute a continuing-disclosure certificate as necessary to satisfy the requirements of SEC Rule 15c2-12 under the Securities Exchange Act of 1934.
The resolution includes an effectiveness condition: it becomes effective only if the Board of Commissioners of Saginaw County adopts a substantially similar resolution pledging its apportioned share. The board did not set an effective date beyond that condition.
Next steps: the pledge is conditioned on a corresponding action by Saginaw County; if Saginaw does not adopt a matching resolution the Shiawassee pledge would not take effect as described in the adopted text.
