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AI- 2940   12. B. 7.    
BOC Regular
Meeting Date: 08/01/2019  
Reimbursement Resolution for Emmett Twp. Road Improvements
Submitted For: Kelli Scott
FROM: Kelli Scott, Administrator/Controller, Administration
Department: Administration  

Information
RESOLUTION:
Resolved, that the Calhoun County Board of Commissioners hereby adopts the attached Resolution Declaring official intent to reimburse expenditures with proceeds of anticipated general obligation unlimited tax bonds that will be used to provide funding for the County's share of local road improvements in Emmett Township over the next few years.
RECOMMENDATION:
County administration recommends the Board of Commissioners adopt the attached resolution declaring official intent to reimburse expenditures with proceeds of anticipated general obligation unlimited tax bonds that will be used to provide funding for the County's share of local road improvements in Emmett Township over the next few years. 

BACKGROUND:
On May 5, 2019 qualified electors of Emmett Charter Township approved a proposal to borrow up to $14,320,000 and issue general obligation unlimited tax bonds to provide funds for the Township's share of a proposed local road improvement project estimated at approximately $27,000,000.

The County anticipates that it may issue bonds as well to pay the County's 50% cost of the project in accordance with Board Policy #509.  The anticipated bond amount would not exceed $14,320,000, tentatively planned for issuance in the spring of 2020.

IRS regulations require the County to declare official intent to reimburse expenditures with proceeds of such debt before making the expenditures.  As such, it is necessary to have the attached Reimbursement Resolution approved now so that the County's Road Department can plan for and carry out construction preparation work this Fall and reimburse those costs with bond proceeds to be received in 2020.

This resolution would also authorize Bendzinski & Co. Registered Municipal Advisors to continue to act as Municipal Advisor to the County and Miller, Canfield, Paddock and Stone, P.L.C. to continue to act as bond counsel for the bonds to be issued at a future date.

The County Board of Commissioners will be asked to approve a Notice of Intent and Bond Authorizing Resolution over the next several months before the anticipated bonds can be issued.
ALTERNATIVES:
The County Board of Commissioners could choose to not approve this Reimbursement Resolution as prepared by bond counsel.  This alternative is not recommended because it would prevent use of future bond proceeds to be used by the Road Department to pay for costs incurred prior to the anticipated bond issuance.  Ultimately the anticipated bond issuance is necessary to provide financing for the County's share of the local road improvement project in Emmett Township.
SUMMARY:
It is recommended that the Board of Commissioners adopt the attached resolution declaring official intent to reimburse expenditures with proceeds of anticipated general obligation unlimited tax bonds that will be used to provide funding for the County's share of local road improvements in Emmett Township over the next few years.


Fiscal Impact
BUDGETARY IMPACT:
This reimbursement resolution will allow the County to use bond proceeds from anticipated future issuance of bonds associated with the voter-approved bond authority for Emmett Township's local road improvement plan. Costs incurred this fall will come from the Road Department's operating budget and then can be reimbursed with bond proceeds once bonds are sold, likely in early 2020.
Attachments
Emmett Road Reimb Res
Emmett debt service
Emmett local road phases
Emmett local road improvement map

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