ADOPTED - NOVEMBER 8, 2005
Agenda Item No. 15
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION PLEDGING FULL FAITH AND CREDIT FOR THE TOWAR SNELL DRAIN DRAINAGE DISTRICT 2005 DRAINAGE DISTRICT BONDS
WHEREAS, Act 40, Public Acts of Michigan, 1956, as amended (the “Drain Code”), authorizes any county to pledge its full faith and credit for the payment of obligations issued thereunder, if the Board of Commissioners of the county has adopted a resolution by a majority vote of its members-elect to that effect; and
WHEREAS, pursuant to the Drain Code proceedings are being undertaken by the Ingham County Drain Commissioner for the construction and financing of an intracounty drainage project designated as TOWAR SNELL DRAIN, said project having been determined to be necessary for the public health; and
WHEREAS, on July 26, 2005 this Board of Commissioners adopted Resolution #05-178 pledging the full faith and credit of the county for the Towar Snell Drain Drainage District 2005 Drainage District Bonds in an amount not to exceed $1,550,000; and
WHEREAS, this Board of Commissioners has been advised that the construction bids have been received and the cost of the project is higher than previously anticipated; and
WHEREAS, pursuant to said proceedings, a special assessment roll has been or will be prepared and duly confirmed by the Drain Commissioner in the aggregate principal amount of not to exceed $2,500,000, being the amount of total estimated financed share cost of the project, which assessments are payable in annual installments over a period of twenty (20) years, commencing 2006, by the City of East Lansing, the Charter Township of Meridian, the Board of County Road Commissioners of the County of Ingham, and benefited lands, according to apportionments to be duly determined by the Drain Commissioner acting pursuant to Section 262 of the Drain Code, said installments bearing interest at such rate of interest as may be necessary to pay interest on obligations payable therefrom; and
WHEREAS, pursuant to the authorization provided in the Drain Code, the Drain Commissioner, by order, will authorize and provide for the issuance of bonds by the Towar Snell Drain Drainage District payable from the collection of said special assessments against the City of East Lansing, the Charter Township Meridian, the Board of County Road Commissioners of the County of Ingham and the benefited lands on said Roll, said bonds being designated 2005 DRAINAGE DISTRICT BONDS (GENERAL OBLIGATION LIMITED TAX) (the “Bonds”), in the aggregate principal amount of not to exceed $2,500,000, to provide funds to pay part of the costs of the project; and
WHEREAS, the said drainage project is immediately necessary to protect and preserve the public health, and it is to the best interest of the County of Ingham (the “County”) that the Bonds, in order to be sold at the lowest and most favorable interest cost possible to obtain, be secured by a pledge of the full faith and credit of the County as authorized by the Section 276 of the Drain Code.
THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners:
ADOPTED - NOVMEBER 8, 2005
Agenda Item No. 15
1. That pursuant to the authorization provided in the Drain Code the Board of Commissioners of the County does hereby irrevocably pledge the full faith and credit of the County for the prompt payment of the principal of and interest on the Bonds when due, and pursuant to said pledge, in the event that the collection of special assessments on said roll is insufficient to pay the Bonds or interest thereon when due, the amount unpaid shall be promptly advanced from County funds as a first budget obligation, and the County Treasurer is directed to immediately make such advancement to the extent necessary.
2. That in the event that pursuant to said pledge of its full faith and credit the County advances out of County funds all or any part of said installments and interest, it shall be the duty of the County Treasurer, for and on behalf of the County, to take all actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of such sums so paid, including without limitation the reassessment by the Drain Commissioner of the special assessment roll as provided in Section 276 of the Drain Code.
3. To the extent required pursuant to Rule 15c2‑12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Rule”), the County shall enter into an undertaking (the “Undertaking”) for the benefit of the holders and beneficial owners of the Bonds to send certain information annually and to provide notice of certain events to certain information repositories pursuant to the requirements of the Rule. The County Controller and the Treasurer each is authorized to execute and deliver the Undertaking in such form as is required pursuant to the Rule.
4. That, to the extent permitted by law, it shall take all actions within its control necessary to maintain the exclusion of the interest on the Bonds from adjusted gross income for general federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code"), including but not limited to, actions relating to the rebate of arbitrage earnings, if applicable, and the expenditure of Bond proceeds and moneys deemed to be Bond proceeds.
5. That all resolutions and parts of resolution insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
COUNTY SERVICES: Yeas: Celentino, Copedge, De Leon, Schor, Severino, Vickers
Nays: None Absent: None Approved 11/1/05
FINANCE: Yeas: Dedden, Swope, Hertel, Schor, Thomas, Dougan
Nays: None Absent: None Approved 11/2/05