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Shiawassee County commissioners approve pledge of county credit for Youngs Intercounty Drain bonds
Summary
The board voted 6–1 to approve Resolution #26-03-04, pledging Shiawassee County’s limited tax full faith and credit to bonds supporting the Youngs Intercounty Drain project; the resolution outlines a $2,085,000 estimated project cost with 61% apportioned to Shiawassee County and requires Saginaw County to adopt a similar pledge.
Shiawassee County commissioners on March 11 approved Resolution #26-03-04, pledging the county’s limited tax full faith and credit toward bonds issued for improvements to the Youngs Intercounty Drain. The motion, moved by Commissioner Brad Howard and seconded by Commissioner Bill Johnson, passed by roll call vote 6–1; Commissioner Gary Holzhausen voted no.
The resolution states a Computation of Cost that estimates total project costs at $2,085,000, apportioned 39% to Saginaw County and 61% to Shiawassee County. The resolution authorizes bonds in an aggregate principal amount not to exceed $2,085,000, with interest up to 6% per annum and maturities no later than June 1, 2046, and notes the county may be required to advance funds if property owners or public corporations fail to pay special assessment installments when due. The board’s pledge specifically covers Shiawassee County’s share of such special assessments; repayment from county funds would be pursued through legal remedies as provided by law.
County officials also recorded that the pledge’s effectiveness is conditioned on the County of Saginaw adopting a substantially similar resolution pledging its share of the project costs. The resolution directs the Shiawassee County Treasurer to execute any continuing disclosure certificate necessary to comply with SEC Rule 15c2-12.
The action formalizes local backing for the drain improvement project and allows the Drainage District to proceed with bond issuance under the terms described in the resolution. Commissioners voting in favor were Bill Johnson, Cindy Garber, Brad Howard, Matthew Shepard, Josh Haley and Chairman Gregory Brodeur; Commissioner Gary Holzhausen cast the lone dissent.
Next steps noted in the resolution text require Saginaw County’s board to adopt a comparable pledge before Shiawassee County’s pledge becomes effective; the resolution also sets out tax-advance and reimbursement procedures and continuing-disclosure obligations for the bond sale.
