HomeMy WebLinkAboutResolutions - 1993.10.21 - 23781October 21, 1993
MISCELLANEOUS RESOLUTION #93229
BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON
IN RE: COMPUTER SERVICES - APPROVAL OF LOAN FROM DELINQUENT TAX
REVOLVING FUND FOR REFINANCE OF IBM LOANS
To the Oakland County Board of Commissioners
Chairperson, Ladies, and Gentlemen:
WHEREAS the County of Oakland entered into two five-year loan
agreements with IBM Credit Corporation on behalf of the Computer
Services at annual interest rates of 6.23% and 6.78%; and
WHEREAS the remaining principal balance for both loans as of
October 1, 1993, total $1,110,137; and
WHEREAS the County desires to refinance these two loans by
borrowing funds from the Delinquent Tax Revolving Fund (DTRF) and
repaying those funds over three (3) years at the average monthly
interest rate paid by the DTRF, which will fluctuate over the term
of the agreement; and
WHEREAS the County Treasurer as agent for the DTRF has
determined that funds are available and is willing to loan funds,
thereby saving the County approximately $23,089 over the term of
this agreement.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes the Chairperson of the Board to execute
the attached Borrowing Agreement in the amount of $1,110,137 with
the County Treasurer as agent of the DTRF to refinance IBM Credit
Corporation Agreements No. G410711 and No. H212291.
BE IT FURTHER RESOLVED that principal and interest payments
made to the DTRF in repayment of this agreement will be accounted
for in the Computer Services Operations Fund, fund #63600.
Chairperson, on behalf of the Finance Committee, I move the
adoption of the foregoing resolution.
FINANCE COMMITTEE
REVOLVING FUND BORROWING AGREEMENT
WHEREAS the County of Oakland is desirous of borrowing monies
from the Oakland County Delinquent Tax Revolving Fund, and
WHEREAS the Delinquent Tax Revolving Fund Agent has determined
sufficient monies are available to loan to the County,
THEREFORE, in consideration of agreements setforth below it is
hereby agreed by and between the parties as follows:
The County will borrow the principal sum of $1,110,137
from the Delinquent Tax Revolving Fund to be paid back in
annual principal and interest payments not to exceed
three (3) years. Said payments shall be deducted from
the annual Revolving Fund distribution made to the County
on or about June 1st of each year. Interest on each
payment will be based on the average monthly rate paid
during the term of this agreement by the agent of the
Delinquent Tax Revolving Fund for that year's outstanding
borrowing. The schedule of principal payments will be:
Year Principal
1 $ 370,046
2 370,046
3 370,045
Total $1,110,137
It is further agreed that the County may pay off the loan
at any time plus accrued interest without penalty.
Agent for Revolving Fund Chairperson
Board of Commissioners
Resolution #93229 October 21, 1993
Moved by McCulloch supported by McPherson the resolution be adopted.
AYES: Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar,
Kingzett, McCulloch, McPherson, Miltner, Moffitt, Oaks, Obrecht, Palmer, Pernick,
Powers, Price, Schmid, Taub, Wolf, Aaron, Crake, Dingeldey. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, 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 October 21, 1993 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 21st day of Cetober_1993,
Lyi-,r D. Allen, County Clerk