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12. B. 6.
Pledge Of Full Faith & Credit RE: Gang of Lakes Intercounty Drain Bonds
Kelli Scott, Administrator/Controller, Administration
Resolved the Calhoun County Board of Commissioners does hereby approve the resolution pledging full faith and credit of the County for the prompt payment of principal and interest on the Gang of Lakes Intercounty Drain Drainage District Bonds, Series 2020(General Obligation Limited Tax) as presented.
The Water Resources Commissioner requests adoption of the attached resolution pledging full faith and credit of the County for the prompt payment of principal and interest on the Gang of Lakes Intercounty Drain Drainage District Bonds Series 2020 (General Obligation Limited Tax).
Pursuant to the Drain Code, proceedings have been undertaken by the Gang of Lakes Intercounty Drain Drainage Board for the construction and financing of improvements to the intercounty drain in the drainage district designated as the Gang of Lakes Intercounty Drain Drainage District, and said improvements have been determined to be necessary for the public health.
100% of the cost of the improvements has been apportioned by the Drainage Board to Calhoun County, which will be paid from the County's Road Department funds, because the scope of this project is limited to culvert replacements, which are the responsibility of the Road Department and will be owned by the County.
Based on engineering estimates, replacing the culverts through the Drain Code project and within the permitting authority of the County Water Resources Commissioner is expected to result in significant cost savings compared to a normal culvert replacement process through the permitting process within the Road Department and State authorities.
Construction and financing costs of this project, in an aggregate principal amount of not to exceed $1,350,000, will be levied over a period of not to exceed fifteen years. Intercounty Drainage District Bonds will be issued in anticipation of the payment of the special assessments. In order for the bonds to be sold at the lowest and most favorable interest cost it is in the best interest of the County that the bonds be secured by a pledge of full faith and credit of the County.
The Board of Commissioners could not pledge full faith and credit of the County for the prompt payment of principal and interest for the intercounty drainage district bonds. It would be difficult to obtain financing of the improvements and maintenance of the Gang of Lakes Intercounty Drain project without the pledge of full faith and credit of the County. The drain improvements and maintenance determined necessary by the Board of Determination could not be completed in a timely manner causing undue hardships to property owners.
It is requested that the Board of Commissioners pledge the full faith and credit of the County for the prompt payment of principal and interest of the Gang of Lakes Intercounty Drainage District bonds.
The not to exceed bond issuance of $1,350,000 will be paid back through special assessments, 100% of which have been apportioned to the County on behalf of its Road Department. Bond principal and interest payments will be made over the life of the bonds out of Road Department budgeted operating funds. Replacing the culverts included in this project through the Water Resources Commissioner's oversight and permits is expected to save the Road Department significant costs compared to what it would cost to replace the culverts outside of the Drain Code authority.
Gang of Lakes Intercounty Drain Bonds
Gang of Lakes Res--Proof
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