ADOPTED - MAY 11, 2010
Agenda Item No. 13
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION PROVIDING ADDITIONAL FUNDING FOR THE REVOLVING DRAIN FUND (FUND 802) COUNTY OF INGHAM, STATE OF MICHIGAN
RESOLUTION #10-159
WHEREAS, the County of Ingham, State of Michigan (the "County"), established a revolving drain fund (the "Revolving Drain Fund," "Fund 802") in 1975 pursuant to Chapter 12 of the Drain Code of 1956 (Act 40, Public Acts of Michigan, 1956, as amended) (the "Drain Code") and appropriated money to the Revolving Drain Fund; and
WHEREAS, the amount attributable to the Revolving Drain Fund is $292,500 currently; and
WHEREAS, this amount has not been increased since 1989, and has not been revised to reflect the rate of inflation; and
WHEREAS, the Ingham County Drain Commissioner (the "Drain Commissioner") has proposed that the Board of Commissioners appropriate an additional amount not to exceed $707,500 to the Revolving Drain Fund, making the total balance $1,000,000; and
WHEREAS, the Drain Commissioner has agreed to pay interest to the General Fund on any funds which are withdrawn from the Revolving Drain Fund until repaid to the Revolving Drain Fund.
THEREFORE BE IT RESOLVED, the Ingham County Board of Commissioners approves the following revisions to the Revolving Drain Fund:
1. Pursuant to Chapter 12 of the Drain Code, the Ingham County Board of Commissioners shall increase the cash advance from the General Fund of the County to the Revolving Drain Fund in the amount of $707,500., making the entire advance $1,000,000.
2. The amount in the Revolving Drain Fund is available for use by the Drain Commissioner as provided in Chapter 12 of the Drain Code. The Drain Commissioner will notify the Financial Services Department of any transfer needed and the funds will be transferred.
3. The County Treasurer shall account for these funds in a separate account or sub-account in the Revolving Drain Fund (the "Account").
4. The Drain Commissioner will pay the County Treasurer interest on any balance withdrawn on the Account. The interest will be paid on a monthly basis using an interest rate determined annually. The interest will be calculated on the outstanding balance of the Account as of the end of each month.
5. The interest rate will be the determined each January at a rate calculated at a rate per annum equal to 150 basis points (1.50%) greater than the yield on a one year U. S. Treasury obligations (the "Interest Rate"). The Interest Rate shall be based upon the information regarding yields on U. S. Treasury obligations published in
ADOPTED - MAY 11, 2010
Agenda Item No. 13
RESOLUTION #10-159
the "Market Data" section of Bloomberg.com, or its successor, or such other source as is mutually agreed by the County Treasurer and the Drain Commissioner.
6. The Drain Commissioner can repay any full or partial portion of the outstanding balance at any time. The Drain Commissioner will notify the Financial Services Department, and the funds will be returned to the Revolving Fund.
7. This arrangement may be rescinded by the Board of Commissioners at the request of either the Drain Commissioner or the County Treasurer, and the $1,000,000 in cash will be returned to the County's General Fund with the understanding that the Treasurer will provide the Drain Commissioner with ample time to borrow funds from an outside source.
BE IT FURTHER RESOLVED, that the revisions to the Revolving Drain Fund will become effective the date of the passage of this resolution.
COUNTY SERVICES: Yeas: Copedge, Schor, Grebner, McGrain, Vickers
Nays: None Absent: Celentino Approved 5/04/10
FINANCE: Yeas: Grebner, Tennis, Bahar-Cook, Schor, Holman, Dougan
Nays: None Absent: None Approved 5/05/10