HomeMy WebLinkAboutResolutions - 2018.04.19 - 23382MISCELLANEOUS RESOLUTION #18092 April 19, 2018
BY: Commissioner Thomas Middleton, Chairperson, Finance Committee
IN RE: TREASURERMIATER RESOURCES COMMISSIONER — OAKLAND-MACOMB INTERCEPTOR
DRAIN DRAINAGE DISTRICT FULL FAITH AND CREDIT RESOLUTION, REFUNDING BONDS
SERIES 2018
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS to the provisions of Chapter 21 of Act No. 40, Public Acts of Michigan 1956, as amended (the
"Drain Code"), the Oakland Macomb Interceptor Drain Drainage District, (the "Drainage District") issued
its Oakland-Macomb Interceptor Drain, Drainage District Bonds, Series 2010B, dated May 1, 2010, the
Prior Bonds in the original principal amount of $6,700,000 which were issued for the construction of the
Oakland-Macomb Interceptor Drain Project (the "Prior Bonds"); and
WHEREAS pursuant to a Corrected Final Order of Apportionment dated July 20, 2010 adopted by the
Drainage Board for the Drainage District, the cost of the project has been apportioned and assessed
against the following public corporations in Oakland County: City of Auburn Hills (3.3059%),
Independence Township (includes City of Clarkston) (3.1622%), City of Lake Angelus (0.0359%), City of
Rochester (2.9035%), City of Rochester Hills (12.9326%), Oakland Township (2.0159%), Orion Township
(4.6139%), Oxford Township (2.4184%), Village of Lake Orion (0.6612%), Village of Oxford (1.1499%),
Waterford Township (13.4608%), and West Bloomfield Township (1.8398%); and
WHEREAS pursuant to a Corrected Final Order of Apportionment dated July 20, 2010 adopted by the
Drainage Board for the Drainage District, the cost of the project has been apportioned and assessed
against the following public corporations in Macomb County: Chesterfield Township (3.9434%), City of
Fraser (2.3239%), City of Sterling Heights (16.4901%), City of Utica (0.9289%), Clinton Township
(11.2458%), Harrison Township (3.0015%), Lenox Township (0.2519%), Macomb Township (6.7545%),
Shelby Township (4.7641%), Village of New Haven (0.5379%), and Washington Township (1.2580%);
and
WHEREAS the Prior Bonds remain outstanding in the aggregate principal amount of $4,880,000.00,
mature in various principal amounts on May 1, in the years 2019 through 2030 and bear interest at rates
per annum that vary from 4.70% to 5.90%; and
WHEREAS Act No. 34, Public Acts of Michigan, 2001, as amended ("Act 34") authorizes the Drainage
District to refund all or any part of its funded indebtedness; and
WHEREAS it is in the best interests of the Drainage District and those public corporations assessed for
the cost of Oakland-Macomb Interceptor Drain Project that the Prior Bonds maturing in the years 2019
through 2030 be refunded (the "Project"); and
WHEREAS the Drainage Board of the Oakland-Macomb Interceptor Drain Drainage District, by resolution
adopted on February 18, 2018, authorized and provided for the issuance by the Oakland-Macomb
Interceptor Drain Drainage District of its Refunding Bonds, Series 2018, in the aggregate principal amount
of not to exceed $5,100,000 (the "Refunding Bonds") to defray part of the costs of the Project; and
WHEREAS Section 526 of Act 40, Public Acts of Michigan, 1956, as amended (the "Drain Code"),
authorizes a county to pledge its full faith and credit for the payment of obligations issued under Chapter
21 of the Drain Code, if the county board of commissioners has adopted a resolution by two-thirds (2/3)
vote of its members-elect to that effect; and
WHEREAS the Refunding Bonds are to be designated Oakland-Macomb Interceptor Drain Drainage
District Refunding Bonds (Series 2018) (Limited Tax General Obligation) with such modifications and
other designations as may be approved by resolution of the Drainage Board, in an aggregate principal
amount not to exceed $5,100,000, with such bonds expected to be issued in approximately 180 to 210
days, bearing interest at the rates and maturing in such amounts and at such times as may be determined
pursuant to the resolution of the Drainage Board; and
WHEREAS the Project is immediately necessary to protect and preserve the public health, and it is in the
best interest of Oakland County that the Refunding Bonds be sold and secured by a pledge of the full faith
and credit of Oakland County, as authorized by Section 526 of the Drain Code; and
WHEREAS the Board of Commissioners of Macomb County is expected to adopt a similar resolution
pledging its full faith and credit for the payment of the Drain Bonds.
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves and
authorizes pursuant to Section 526 of the Drain Code, the Oakland County Board of Commissioners, by
an affirmative vote of at least two-thirds (2/3) of its members — elect, does hereby irrevocable pledge the
full faith and credit of Oakland County for the prompt payment of the principal of and interest on the
Refunding Bonds, in one or more series, not to exceed in the aggregate amount of $5,100,000 and does
agree that in the event any public corporations in Oakland County shall fail or neglect to pay to the
Oakland County Treasurer the amount of any special assessment installment and interest (in anticipation
of which the bonds are issued) when due, then the amount thereof shall be advanced from the funds of
Oakland County, and the Oakland County Treasurer for the amount of any special assessment
installment and interest (in anticipation of which the bonds are issued) when due, then the amount thereof
shall be advanced from the funds of Oakland County Treasurer, the Oakland County Treasurer, is
directed to make such advancement to the extent necessary.
BE IT FURTHER RESOLVED in the event that, pursuant to said pledge of its full faith and credit Oakland
County advances out of Oakland County funds all or any part of the principal and interest due on the
Drain Bonds, it shall be the duty of the Oakland County Treasurer, for and on behalf of Oakland County,
to take all actions and proceedings and pursue all remedies permitted or authorized by law for the
reimbursement of such sums so paid.
BE IT FURTHER RESOLVED the Oakland County Executive, is authorized to file with the Department of
Treasury of the State of Michigan on behalf of the County an Application for the State Treasurer's
Approval to Issue Bonds with respect to the Bonds.
BE IT FURTHER RESOLVED the Oakland County Executive, the Oakland County Treasurer, and any
other official of Oakland County, and their respective designees, or any of them, are authorized, if
necessary, to approve the circulation of a preliminary and final official statement for the Bonds, to cause
the preparation of those portions of the preliminary and final official statement that pertain to the County,
and to do all other things necessary for compliance with Rule 15c2-12 issued under the Securities
Exchange Act of 1934, as amended (the "Rule"). The County Executive, the County Treasurer, or any
other official, or their respective designees, are authorized to execute and deliver such certificates and to
do all other things that are necessary to effectuate the sale and delivery of the Bonds.
BE IT FURTHER RESOLVED the County Executive, the County Treasurer and any other official of
Oakland County, and their respective designees, or any of them, are hereby authorized, if necessary, to
execute and deliver in the name and on behalf of the County (i) a certificate of the County to comply with
the requirements for a continuing disclosure undertaking of the County pursuant to subsection (b)(5) of
the Rule and (ii) amendments to such certificate from time to time in accordance with the terms of such
certificate (the certificate and any amendments thereto are collectively referred to herein as the
"Continuing Disclosure Certificate"). To the extent a Continuing Disclosure Certificate is executed and
delivered, the County hereby covenants and agrees that it will comply with and carry out all of the
provisions of such Continuing Disclosure Certificate. The remedies for any failure of the County to comply
with and carry out the provisions of the Continuing Disclosure Certificate shall be as set forth therein.
BE IT FURTHER RESOLVED all resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resplution,
/4 /)
Commissioner Thomas Middleton, District #4
Chairperson, Finance Committee
MR MM." MUNICIPAL FINANCIAL
CONSULTANTS
MVO INCORPORATED
MEMORANDUM
TO: Jim Nash
Oakland County Water Resources Commissioner
FROM: Steven A. Burke, CFA
Municipal Financial Consultants Incorporated
DATE: March 19, 2018
RE: Oakland-Macomb Interceptor Drain Drainage, District Drain Bonds, Series 2010b
MFCI has updated the refunding analysis for this issue. The rates used for this analysis
are the most up to date estimates we have as of today, 3/19/18. The savings of this refunding are
estimated to be about $124,000 and 2.2%.
The 5-year and 10-year interest rate markets have climbed over 20% since our previous
refunding analysis in December. The rate of change at which rates are rising is well outside of
normal market conditions. For example, the 5-year rate is now 3 standard deviations away from
the 5 year mean. Without diving too far into the minutiae of the statistics and theory, this is likely
a less than 1% probability event.
If these bonds were to be sold today they would be very close to achieving the required
savings to undertake this refunding. Because of the size of this issue, even a small decline in rates
will move this refunding back into the acceptable threshold for savings. In this case, a 10 basis
point reduction in the interest rate adds an additional 1% to the overall savings.
Our recommendation is to authorize the borrowing now but only move forward with a
sale if we can reasonably expect to achieve over a 2% present value savings. This would give the
District the flexibility to act quickly if market conditions improve. We will monitor market
conditions and can be in position to sell on as little as a 3 week notice. The District would not
incur any costs until a decision was made to move forward with a sale (the first cost would be the
credit rating).
As you know these bonds are apart of the Recovery Zone Economic Development
Program. This program was designed to give the County a rebate of 45% of the interest paid on
these bonds. Due to the ongoing sequester, this rate was set at 42.03% for fiscal year 2018, By
refunding these bonds the County will no longer have the payment uncertainty that has
surrounded this program.
If you have any questions, please feel free to call me.
Enclosures
Oakland-Macomb Interceptor Drain Drainage District
Drain Refunding Bonds, Series 2018
$4,740,000.00
Sources & Uses of Funds
Doled: 05/01/2018 I Delivered: 05/30/2018
Sources
Par amount of bonds .................... „ „ . „ . „ ,
Accrued interest
Original issue premium„ . , . „ . „ . , , ...................................... ............ ..... „ ....... „
Issuer Interest
Escrow Interest
Totals:
Uses
Amount of bonds called
Accrued interest . „ .......... .........................
Underwriter discount ($10.000) ......................... ................ „
Other issuance costs
Interest Due
Contingency fund ..................... . ..... „ „ „ . ................ • • • ...... • • • • • • • • • • • • • • • • • • • • • • • • •
Totals:
$4,740,000.00
$10,963,62
$119,583.10
$38,278.32
$5,900.00
$4,914,725.04
$4,755,000.00
$10,963.62
$47,400.00
$60,000.00
$38,278.32
$3,083.10
$4,914,725.04
0AKMAC0MB-2018-Z I FY: 1 I Mun-EaseElevaleMainD15110.99v EDB I 03/19/2018110:11
Municipal Financial Consultants Inc.
Oakland-Macomb Interceptor Drain Drainage District
Drain Refunding Bonds, Series 2018
$4,740,000.00
Refunding Savings Report
Dated: 05/01/2018 Delivered: 05/30/2018
Calendar Thincipal Coupon Interest Total Fiscal Total Prior Debt Cumulative
Date Payment Rate Payment Debt Service Debt Sereice Semite Savings Savings
10/0112018
04/01/2019
10/01/2019
04/01/2020
10/01/2020
04/01/2021
10/01/2021
04/01/2022
10/01/2022
04/01/2023
10/01/2023
04/01/2024
10/01/2024
04/01/2025
10/01/2025
04101/2026
10/01/2026
04/01/2027
10101/2027
04/01/2028
10/01/2028
04/01/2029
10/0112029
04/01/2030
10/01/2030
300,000.00
310,000.00
325,000,00
340,000.00
360,000.00
380,000.00
400,000.00
420,000,00
445,000.00
460,000.00
490,000.00
610,000.00
56,708.33
68,050,00
65,050 00
65,050.00
61,950.00
61,950,00
57,075.00
57,075.00
51,975.00
51,975,00
46,575.00
46,576.00
40,875.00
40,875.00
34,875.00
34,876.00
28,575,00
28,575.00
21,900.00
21,900.00
15,000,00
16,000.00
7,650.00
7,660 00
56,708.33
368,050.00
65,050.00
375,050.00
61,950.00
386,950.00
57,075.00
397,075.00
51,975.00
411,975.00
46,575.00
426,575,00
40,875.00
440,875.00
34,575.00
454,875,00
28,575.00
473,575.00
21,900.00
481,900,00
16,000.00
505,000.00
7,650.00
517,650,00
56,708.33
433,100.00
437,000.00
444,025,00
449,050.00
458,550,00
467,450.00
475,750,00
483,450.00
495,475,00
496,900.00
512,650,00
517,650.00
76,551.73
444,084.08
450,661.15
456,454.10
461,477.50
470,618 20
478,929.90
486,319.80
492,773.40
503,225.50
507,664.60
521,248.50
528,892.00
19,843.39
10,984.08
13,661.15
12,429.10
12,427.50
12,088.20
11,479.90
10,569.80
9,323.40
7,750.60
10,764.50
8,698.50
11,242.00
19,843.39
30,827.47
44,485.62
88,917.72
69,345.22
81,413.42
92,593.32
103,453.12
112,786.52
120,537.02
131,301.52
139,900.02
181,142.02
2.000
2.000
3.000
3.000
3.000
3 000
3.000
3.000
3.000
3.000
3.000
3,000
4,740,000.00 987,758.33 5,727,758.33 5,878,900.35 181,142.02
+ Accrued Interest -10,963,62 10,983.62
- Total Outside Sources (included in calcel -38,278.32
4,740,000.00 987,758.33 5,716,794.71 6,878,900.35 123,827.32
104,855.99 (Net of Accrued Interest)
2.2062 %
2.2122 %
2.5662780
2.5647967
Present Rine Servings discounted at 2.5647967 % Equals
Discounted Servings as a Percentage of Refunded Bonds
Discounted Savings as a Percentage of Refunding B0116
Escrow Field
Arbitrage Yield Limit (AYL)
OAKMACOM8-2018-Z 1 FY: 1 I Mun-EaseElevateMainflb I 16.99v FOR I 03119/2018 I 10:11
Municipal Financial Consultants Inc.
***Wei &wings (+/)'*' -)**),
Per-
iods
Discounted Total Debt
Serniee Debi S ve
PV
Faaor
Beads
Called
Oakland-Macomb Interceptor Drain Drainage District
Drain Refunding Bonds, Series 2018
$4,740,000.00
Refunding Verification Report
Dated: 05101/2018 Delivered: 05/30/2018
Calendar
Dale
******Belbre Reiremling"""
OutFianding 11 lel Debt
Indebtedness Service
******orivm I-***
Otastandkg Total 'Jell,
Indebtedness S'ernice
4,755,000,00 0.1722
0.6722
1.6722
2.6722
3 6722
4 6722
5 6722
6,6722
7,6722
8,6722
9,6722
10,5722
11.6722
12.6722
13.6722
14.6722
15.6722
16.6722
17.6722
18.6722
19,6722
20,6722
21.6722
22.6722
23.6722
5,727,758 33 4,755,000.00
-10,96322
5,716,794 71 4,755,000.00
05/30/2018
07/0112018
10/0112018
04/01/2019
10/01/2019
04/01/2021)
10101/2020
04/01/2021
10/01/2021
04/01/2022
10/01/2022
04/01/2023
10/01/2023
04/01/2024
10/01/2024
04/01/2025
10/G1/2025
04/01/2026
10/01/2026
04/01/2027
10/01/2027
04/01/2028
10/01/2028
04/01/2029
10101/2029
04101/2030
4,755000.00
4,460,000.00
4,460,000.00
4,150,000.00
4,150,000.00
3,825,000.00
3,825,000.03
3,485,000.00
3485,000.00
3,125,000,00
3,125,000 00
2745,000 00
2,745,000 00
2,345,000,00
2,345,000,00
1,925,000,00
1,925,000,00
1,480,000,00
1,480,000,00
1,015,000.00
1,015,00000
520,000.00
520,000.00
76,551.73
371,551.73
72,532.35
382,532.35
68,128.80
393,128.80
63,325.30
403,325.30
58,152.20
410,152.20
52,466.00
432,466.00
46,463.90
446,463.90
39,855.90
459,855.90
32,917.50
477,917.50
25,308.00
490,308.00
17,356.50
512,356.50
8,892,00
528692.00
5,878,900.35
5,878,900.35
9,480,000,00
4,740,000,00
4,740,000,00
4,440,000,00
4,440,000,00
4,130,000,00
4,130,000,00
3,80500.00
3,805,000.00
3,465,000.00
3,465,000.00
3,105,000.00
3,195,000.00
2,725,00000
2,725,000.00
2325,000.00
2325,000.00
1,905,00000
1,905,002.00
1,462,002.00
1,462,000.00
1,000,000.00
1,000,000.00
5i 0,00000
510,002.00
55,708.33
36E1,050.00
65,050.00
375,050.00
61,950.00
386,950.00
57,075.00
397,075.00
51,975.00
411,975.00
46,575.00
426,575,00
40,875,00
440,875.00
34,875.00
454,875.00
28575.00
473,575.00
21,900.00
481,900.00
15,000.00
505,000.00
7,950.00
517,650.00
-38,278.32
19,843.39
3501.72
7482.35
7482.35
6,178.80
6,178,60
6,250.30
6,25030
6,177,20
6,17720
5,891,00
5,891.00
5,588,90
5,588.90
4,980.90
4,980.90
4,342.50
4,342.50
3,408.00
8,408.00
2,356.50
7,356,50
1,242.00
11,242,00
112,863.70
10,963.62
123,827.32
1.0000000
0.9978079
0.9914708
0.9789172
0.9565225
0.9542848
0.9422020
0.9302722
0.9184935
0.9066639
0,8953815
0,8840445
0,8728511
0,8617994
0,8508876
0,8401140
0,8294768
0,8189743
0,8086048
0.7983665
0.7882579
0.7782773
0.7684231
0.7586936
0.7490873
0,7396027
-38,278.32
19,674,14
3,427.90
7,231.86
7,140.29
5,821.68
5,747.97
5,740.86
5,668.17
5,530.95
5,460.92
5,141.97
5,076.86
4,755.53
4,695.31
4,131.54
4,079.23
3511.37
3,466.91
2,686.38
6,543.76
1,810.79
5,58133
930.37
8,314,61
93,892,37
10,963,62
104,855,99
Totals Before Accrued Interest
Accrued Interest
Totals After Accrued Interest
Discounted Savings as a Percentage of Refunded Bonds 2.2052 Escrow Yield 2.6662780
Discounted SaVings as or Percentage of Refunding Bond 2.2122 Arbitrage Yield Limit (AYL) 2.6647967
Discount Factor 2.5647967
OAKMACOMB-2016-Z I FY 1 1 Mun-EaseElevateMainDb I 16.995 ERB 103/19/2018 I 'tall
Municipal Financial Consultants Inc.
Oakland-Macomb Interceptor Drain Drainage District
Drain Refunding Bonds, Series 2018
$4,740,000.00
Summary of Refunded Bonds
Dated: 05/0112018 1 Delivered: 05/30/2018
Maturity Coupon Mahal.ry Call Amou fit
.1:06
Rate Dale Price Called? Date Called
0.667
0,841
1.275
1.420
2.000
2.174
2.261
2.522
2.725
2,841
2.956
3.043
3.159
3.159
3.304
3.304
3.420
3.420
3.420
3.420
100.000
100.000
100.000
100.000
100.000
100.060
100.000
100.000
100.000
100.000
100,000
100.000
100.000
100.000
100.000
100.000
100.000
100.000
100,000
100.000
OAKMACOMB-2010-A
Sena/ Bonds
2
3
4
5
6
7
a
9
10
11
12
13
14
15
16
17
18
19
20
Bond Totals:
Grand Totals:
190,000.00
225,000,00
230,000.00
240,000.00
250,000.00
260,000.00
270,000.00
280,000.00
295,000,00
310,000.00
325,000.00
340,000.00
360,000.00
380,000.00
400,000.00
420,000.00
445,000.00
465,000.00
495,000.00
520,000.00
6,700,000.80
6,700,000,00
4/1/2011
4/1/2012
4/1/2013
4/1/2014
4/1/2015
4/1/2016
4/1/2017
4/1/2018
4/1/2019
4/1/2020
4/1/2021
4/1/2022
4/1/2023
4/1/2024
4/1/2025
4/1/2026
4/1/2027
4/1/2028
4/1/2029
4/1/2030
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
07/01/2018
295,000.00
310,000.00
325,000.00
340,000.00
360,000.00
380,000,00
400,000.00
420,000.00
445,000.00
465,000.00
495,000.00
520,000.00
4,765,000.00
4,755,000.00
OAKMACOMB-2018-Z 1 FY: 11 Mun-EaseElevateMainDb I 16.99v FDBI 03/19/2018110:11
Municipal Financial Consultants Inc.
Resolution #18092 April 19, 2018
Moved by Fleming supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Fleming, Gingell, Hoffman, Jackson, Kochenderfer, Kowall, Long, McGillivray,
Middleton, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman, Crawford. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
I HEREENAPPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 19, 2018,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 191h day of April, 2018.
Vf-fe n
Lisa Brown, Oakland County