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Board pledges full faith and credit to back Duff Intercounty Drain bonds after MDOT agrees to cover majority of $2.878M project
Summary
County staff told commissioners MDOT will pay most of a $2,878,000 Duff Intercounty Drain project. The board adopted a resolution pledging the county—s limited tax full faith and credit to support issuance of up to $740,000 in drain bonds or notes to finance assessments; the resolution passed by roll call with all commissioners voting yes.
County staff presented the Duff Intercounty Drain project and asked the board to adopt a limited-tax full-faith-and-credit pledge to facilitate financing. Angela, presenting the project, said the total project cost is $2,878,000 and that "MDOT is paying for the majority of that project to relieve the landowners of its flooding issues." She outlined a proposed assessment to property owners of approximately $740,000 and said Tuscola County and the county would share remaining costs.
The resolution authorizes issuance of drain bonds or a note not to exceed $740,000 under Act 40, Public Acts of Michigan 1956 as amended, and pledges the county—s limited tax full faith and credit for prompt payment if assessments are insufficient. Angela said staff intends to structure the borrowing over five years to secure better interest rates: "We are proposing to do this over 5 years," she said. The board adopted the resolution by roll-call vote; each commissioner present recorded a "Yes." The resolution also authorizes officials to take necessary actions to issue debt and to comply with continuing-disclosure requirements.
The presentation listed procedural citations in the resolution, including Act 40, the drainage-board process, and references to state Treasury approval for long-term securities. Staff noted the dollar figure includes recent maintenance expenditures and said any county advances could be repaid from assessments or reassessments on benefited properties.
