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HomeMy WebLinkAboutResolutions - 2002.03.13 - 26858MISCELLANEOUS RESOLUTION #02042 March 14, 2002 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: DEPARTMENT OF MANAGEMENT & BUDGET — DELINQUENT TAX REVOLVING FUND — FISCAL RESPONSIBILITY PLAN — REVISION #1 TO: The Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, acting under the authority of the General Property Tax Act, PA 206 of 1893, as amended by PA107 of 1968, MCL211.87b, the Board of Commissioners established the Oakland County Delinquent Tax Revolving Fund (DTRF) in 1974; and WHEREAS operation of the DTRF by the County Treasurer has consistently provided taxing units with a stable revenue stream while also generating a surplus; and WHEREAS the Board of Commissioners annually incorporate into the General Appropriations Act a strict policy for accessing funds from the DTRF; and WHEREAS the Governmental Accounting Standards Board (GASB) Statement #34 requires that the DTRF be reported as a Major Fund within the Business-type Activities Category in the Comprehensive Annual Financial Report (CAFR); and WHEREAS the Board of Commissioners, by Misc. Resolution #01183, dated July 19, 2001, adopted the original Delinquent Tax Revolving Fund — Fiscal Responsibility Plan which prudently utilizes DTRF resources without jeopardizing its primary mission, by using the fund to pay debt service on certain specified capital projects that are included in the Board of Commissioners approved Long-Term Capital Improvement Program; and WHEREAS several events have occurred since adoption of the original Plan which require incorporation of the following changes: 1) Revised bond amounts ($23.4 million), sold December 11, 2001, for Work Release Facility, including funding for Information Technology Projects: Video conferencing and Jail Management Systems; 2) Revised estimates for bonds ($17.1 million) for acquisition of property and construction of new court facility for 52 nd District Court-Division III — Rochester/Rochester Hills; 3) Revised estimates for bonds ($22.4 million) to cover cost of acquisition and renovation of the Oakland Intermediate School District Administration Building; 4) Addition of estimates for bonds ($12.2 million) to cover the cost of site work and construction of 197 T-Hangars at the three Oakland County general aviation airports; and 5) Revised assumptions for impact of market rates on DTRF interest earnings and bond interest cost, as well as anticipated bond issuance expense based on recent experience. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners adopts the attached Delinquent Tax Revolving Loan Fund — Fiscal Responsibility Plan — Revision #1 (copy on file with the County Clerk). BE IT FURTHER RESOLVED that individual projects, included in the plan, require approval by the Board of Commissioners and designation of DTRF funding to pay debt service. Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE L'el/14/1/L /(f °1-1/e rote with Palmer and ingel FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Palmer andlingeldey absent. MEMO January 7, 2002 Exhibit A-6 Page 1 To: Board of Commissioners From: County Executive Administration Re: Delinquent Tax Revolving Fund — Fiscal Responsibility Plan — Revision #1 Delinquent Tax Revolving Funds (DTRF) were created to stabilize revenue streams for school districts, intermediate school districts, community college districts, cities, townships, counties, special assessment districts, the state, and any other political unit adversely affected by delinquent tax payments. Prudent management and fiscally sound utilization policies have allowed Oakland's DTRF to not only consistently achieve its goal of revenue stabilization, but also has allowed it to generate a fund surplus. Attached is the County Executive's recommended Delinquent Tax Revolving Fund - Fiscal Responsibility Plan (Plan) — Revision #1 for prudently utilizing DTRF resources without threatening its primary mission. The original Plan was adopted by Misc. Resolution #01183 approved by the Board of Commissioners on July 19,2001. The Plan - Revision #1 incorporates the following changes: 1) Revised bond amounts ($23.4 million), sold December 11, 2001, for Work Release Facility, including funding for Information Technology Projects: Video Conferencing and Jail Management Systems. 2) Revised estimates for bonds ($17.1 million) for acquisition of property and construction of new court facility for 52m1 District Court — Division III — Rochester/Rochester Hills. The Sheriffs substation, anticipated to be funded from a separate series of the same bond issue, constructed simultaneously and immediately adjacent to the court facility, will be the financial responsibility of the City of Rochester Hills. 3) Revised estimates for bonds ($22.4 million) to cover cost of acquisition and renovation of the Oakland Intermediate School District Administration Building. 4) Addition of estimates for bonds ($12.2 million) to cover the cost of site work and construction of 197 T-Hangers at the three Oakland County general aviation airports: Oakland International Airport in Pontiac, Oakland/Troy Airport and Oakland County Southwestern Airport in New Hudson. 5) Revised assumptions for impact of market rates on DTRF interest earnings and bond interest cost, as well as anticipated bond issuance expense based on recent experience. 1 Emma A-6 Page 2 BACKGROUND Acting under the authority of the General Property Tax Act, 1893 PA 206, as amended by 1968 PA 107, MCL 211.87b, the Board of Commissioners established the Oakland County DTRF in 1974. Also known as the "100% tax payment fund", the DTRF was created to help stabilize local governmental revenues. The DTRF helps stabilize local revenues by paying the local taxing units, in anticipation of the collection of those taxes by the County Treasurer, 100% of their respective shares of delinquent ad valorem real property taxes. The County funds the DTRF by borrowing money and issuing revolving fund notes. Payment of the notes is made from the proceeds of delinquent tax collections. The law requires the delinquent taxes from which the borrowing is to be repaid be pledged to the payment of the principal and interest of the notes. The proceeds of the collection of the delinquent taxes pledged and the interest on the proceeds must be placed in a segregated fund or account and may not be used for any other purpose until the notes are paidin full, including interest. Once the notes are paid in full, any surplus in the fund may be transferred to the county general fund by appropriate action of the Board of Commissioners. Under the stellar management of Treasurer C. Hugh Dohany, Oakland County's DTRF has consistently provided our schools, community colleges, cities, villages and townships with a stable revenue stream while also generating a surplus. Responsible use of this surplus is the subject of this proposal. While other counties have established DTRFs in their jurisdictions, Oakland County is unique in that it has not immediately appropriated fund surpluses to fund operations. In fact the County Executive has recommended, and the Board of Commissioners has adopted, a strict policy for accessing funds from this precious resource. The policy is incorporated in the annual General Appropriations Act, and specifies that any and all appropriations from unrestricted DTRF funds, excepting penalties and investment interest, shall be limited to one-time expenditures, as opposed to recurring operations. Current policy also provides that any appropriations from unrestricted DTRF funds not considered advances to be repaid within a time certain, shall require a two-thirds majority vote of the Board of Commissioners. As a result of Oakland's current DTRF utilization policy, the corpus of the DI'RF continues to be available to not only protect our schools, community colleges, cities, villages and townships, but also to generate interest earnings that, prudently managed, can be utilized in place of new taxes as a funding source for necessary capital projects. To date, the County has generally been faithful to its policy, using only a portion of penalties and investment interest ($4.3 million annually) to augment the General Fund 2 Exhibit A-6 Page 3 Operating Budget. All other projects drawing upon the DTRF have been limited to identifiable projects having a specified time frame and benefiting a targeted constituency. Examples include $6 million for installation of OAKNet, the Metropolitan-Wide Area Fiber Optic Network linking law enforcement agencies throughout the County; $7.5 million for the Judicial Information Management System (J1MS) that will replace the fragmented and obsolete records management system for Circuit, District and Probate Courts; and $25.0 million for the Environmental Infrastructure Fund, a five-year program extending through FY2003 that has earmarked DTRF resources to fund environmental projects selected and implemented by Oakland County's CVTs. ISSUES/CONCERNS Formulation of the County Executive's recommendation was developed in the context of several issues/concerns related to the financial well being of Oakland County over the next several years, including: 1) The impending impact of the interaction between Proposal A and the Headlee Constitutional Tax Limitation Amendment. This impact can be expected to constrain the County's primary source of revenue, property taxes, at a time when growth in population and human activity is placing increasing demands on government for services and for facilities to hause those services. 2) The law's demand that the purpose of the DTRF, (regularly paying to local taxing units within the County 100% of their respective shares of delinquent ad valorem real property taxes, prior to the collection of those taxes by the County Treasurer) not be jeopardized. 3) The continued pressure to assist local units attempting to meet their obligations under new federal and state environmental and infrastructure mandates while attempting to maintain their core public services at acceptable levels. The impact of these mandates is likely to be exacerbated by recent and pending federal regulatory actions surrounding the newly introduced concept of Capacity Management for Operations and Maintenance (CMOM), which will lead to future environmental related projects with significant price tags. 4) The pending financial reporting requirements of newly issued Statement #34 of the Governmental Accounting Standards Board (GASB), that will require capitalization of all assets, including buildings, roads, sewers, water and waste management systems. These new reporting requirements apply to all governmental units throughout Oakland County, as well as the State and Nation. 5) In response to 4) above, the need to develop a strategy targeted to benefit all of our local units that will result in a standardized records management system integrating the environmental infrastructure information needs of all municipalities throughout the County. Such a system is an essential prerequisite to planning and financing future physical improvements. It is apparent that an information system of this scale would be cost prohibitive for most local units. Even if affordable for some, it is clear 3 Exhibit A-6 Page 4 that development of separate systems will result in duplicative efforts and costs for CVT and County taxpayers. A County initiated and coordinated program, as is proposed, with seed money provided by the DTRF, would certainly enhance the probability of achieving successful implementation of such an information system, including integration of all historical records into the existing Geographic Information System (GIS). 6) A fully solvent, prudently managed DTRF is an essential component of the favorable view that Wall Street has towards the County. Wall Street's support, as evidenced by its award of a AAA Bond Rating, allows the County to issue debt at the lowest possible interest cost. An irresponsible raid on the DTRF and its inevitable resultant downgrade of the County's favorable bond rating would have costly, detrimental long-term consequences for both the County and its political subdivisions. RECOMMENDATION The County Executive's recommended DTRF — Fiscal Responsibility Plan is based upon these principles: 1. That the corpus of the DTRF must, at all times, be sufficient to guarantee 100% tax payments to the school districts, intermediate school districts, community college districts, cities, townships, counties, special assessment districts, the state, and any other political unit whose operations may be adversely affected by delinquent tax payments. In other words, the primary purpose of the fund must never be jeopardized. 2. That the corpus of the DTRF must, at all times, be sufficient to guarantee timely payment of outstanding notes. 3. That, except as provided herein, current DTRF utilization practices (including a limited use of funds for operations) and policies that have proven themselves beneficial to the County and its taxpayers should be preserved; and 4. That increased utilization of DTRF resources should be limited to the funding of currently unfunded capital projects that are included in the Board of Commissioner approved Long-Term Capital Improvement Program. Fiscally responsible increased utilization of the DTRF can be achieved by using the fund to pay debt service on three major Board-approved capital projects that will house essential public services. They are: 1) Work Release Facility - $23.4 million (including for Information Technology projects Video Conferencing and Jail Management Systems), and 2) Rochester District Court - $17.2 million; 4 EXillba A-0 Page 5 3) Renovation of Oakland Schools Building - $22.4 million; 4) Airport T-Hangers - $12.2 million. By using the DTRF to pay debt service on the combined $75.2 million capital outlay, including issuance costs, rather than pay-as-you-go, the County will adhere to the principles set out above and achieve a $27.0 million net cost savings over the term of the proposed bond issues. The Executive's proposed DTRF-Fiscal Responsibility Plan also recommends initial funding ($5.0 million annually) for expansion of the County's Geographic Information System, a project that will provide County-wide, fully integrated, Environmental Infrastructure Records Management System available to all 61 Oakland County CVTs. Such a system will benefit local units in planning future physical improvements, and assist them in their efforts to meet their new reporting obligations under GASB Statement #34. BENEFITS By using DTRF resources to fund necessary capital facilities rather than using them to support operating expenses, the Plan makes maximum use of available resources to hold in abeyance the ultimate impact of Headlee and the need to seek a referendum on increasing authorized operating tnillage. The Plan allows for the continued use of $4.3 million of DTRF interest earnings to fund General Fund/General Purpose Operations as provided in the annual General Appropriations Act. In addition, the Plan would address a strategy targeted at local units to provide a Countywide, integrated, standardized GIS System. The Plan fully complies with the current adopted policy on DTRF, thereby ensuring the functional intent and operational success of the DTRF as originally established. In addition, a $27.0 million net cost saving will be realized over the term of the proposed bond issues. The projected fund balance in the DTRF at the conclusion of debt service in FY2022 should remain at current levels — approximately $187.0 million. Finally, implementation of the fiscally responsible recommended plan should reassure Wall Street analysts because it demonstrates Oakland County's commitment to prudent financial practices. 5 2001 2000 1999 Actual Actual Actual $184,451,902 $9,530,166 10,010.713 $19,540,879 $189,116 589.952 $779,068 $183,176,461 $11,200,152 8,610,758 $19,810,910 $794,621 717.029 $1,511,650 $2,100,000 $4,100,000 1,937,252 2,416,119 5,000,000 5,000,000 6,000,000 5,000.000 $20,037,252 2.500.000 $14,016,119 $183,176,461 $187,459,602 $13,700,220 $15,679,056 8193,789,659 $193,405,662 OAKLAND COUNTY, MICHIGAN DELINQUENT TAX REVOLVING FUND PROJECTIONS FOR FISCAL YEARS 2000-2021 ATTACHMENT Al 2002 Projected 2003 Prolected 2004 Projected Retained Earnings at Beginning of Year Income: Service Charges Interest Income Total Income Expenses: Operating Expenses Interest Expense Total Expenses Operating Transfers Out:* Annual Subsidy - General Fund Investment Income Environmental Infrastructure Work Release Facility Debt Service Rochester District Court Debt Service Airport T-Hangers Debt Service New Office Building Debt Service Oakland Tech. Park Road Project OAKNet (MAN/WAN) Court Replacement System (JIMS) Total Transfers Out Retained Earnings at End of Year $180,890,377 $10,010,789 6,373,208 $16,383,997 $207,700 450.574 $658,274 $2,100,000 2,064,198 5,000,000 3,000,000 $12,164,198 $184,451,902 $187,459,602 $10,000,000 6,186,167 $16,186,167 $500,000 600,000 $1,100,000 $3,100,000 2,200,000 5,000,000 $10,300,000 $192,245,769 $192,245,769 $10,000,000 6 44,110 $16,344,110 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,976,280 1,446,240 977,700 $193,789,659 $10,000,000 6,395,059 $16,395,059 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,967,463 1,446,700 987,813 1,977,080 *NOTE: Does not include short term loans, e.g., Helicopter acquisition. $15,632,333 $17,585,075 $15,532,864 $15,475,702 $15,438,588 $189,664,020 $189,384,345 OAKLAND COUNTY; MICHIGAN DELINQUENT TAX REVOLVING FUND PROJECTIONS FOR FISCAL YEARS 2000-2021 ATTACHMENT A2 2005 Proiected 2006 Prolected 2007 Projected 2008 Proiected 2009 Projected 2010 Projected Retained Earnings at Beginning of Year Income: Service Charges Interest Income Total Income Expenses: Operating Expenses Interest Expense Total Expenses Operating Transfers Out: Annual Subsidy - General Fund Investment Income Environmental Infrastructure Work Release Facility Debt Service Rochester District Court Debt Service Airport T-Hangers Debt Service New Office Building Debt Service Oakland Tech. Park Road Project OAKNet (MAN/WAN) Court Replacement System (JIMS) Total Transfers Out Retained Earnings at End of Year $193,405,662 $10,000,000 6 382 387 $16,382,387 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,950,388 1,465,763 993,013 1,965,488 $15,674,652 $193,013,397 $193,013,397 $10,000,000 6 369,442 $16,369,442 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,932,070 1,457,350 996,975 1,945,938 $192,650,506 $192,650,506 $10,000,000 .6.357.467 $16,357,467 $500,000 600.000 $1,100,000 $4,100,000 2,200,000 5,000,000 1,912,525 1,447,700 999,700 1,925,150 $190,322,898 $190,322,898 $10,000,000 6,280,656 $16,280,656 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,891,738 1,436,813 1,001,188 1,903,125 $189,970,689 $189,970,689 $10,000,000 6,269,033 $16,269,033 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,869,713 1,424,688 1,001,438 1,879,863 $189,664,020 $10,000,000 6.258,913 $16,258,913 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,871,450 1,411,325 1,000,450 1,855,363 $15,322,039 $17,267,602 $15,181,976 $15,141,400 $15,068,401 $186,658,076 $186,649,392 OAKLAND COUNTY, MICHIGAN DELINQUENT TAX REVOLVING FUND PROJECTIONS FOR FISCAL YEARS 2000-2021 ATTACHMENT A3 2011 Projected 2012 Prolected 2013 Projected 2014 Projected 2015 Proiected 2016 Projected Retained Earnings at Beginning of Year Income: Service Charges Interest Income Total Income Expenses: Operating Expenses Interest Expense Total Expenses Operating Transfers Out: Annual Subsidy - General Fund Investment Income Environmental Infrastructure Work Release Facility Debt Service Rochester District Court Debt Service Airport 1-Hangers Debt Service New Office Building Debt Service Oakland Tech. Park Road Project OAKNet (MAN/WAN) Court Replacement System (JIMS) Total Transfers Out Retained Earnings at End of Year $189,384,345 $10,000,000 6 249 683 $16,249,683 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,845,713 1,396,725 998,225 1,829,625 $15,370,288 $189,163,740 $189,163,740 $10,000,000 6.242.403 $16,242,403 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,843,738 1,380,888 994,763 1,802,650 $188,984,104 $168,984,104 $10,000,000 6,236.475 $16,236,475 $500,000 600,000 $1,100,000 $4,100,000 2,200,000 5,000,000 1,839,288 1,363,813 990,063 1,774,438 $186,852,978 $186,852,978 $10,000,000 6.166,148 $16,166,148 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,807,363 1,345,500 984,125 1,744,988 $186,737,150 $186,737,150 $10,000,000 6,162,326 $16,162,326 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,824,200 1,325,950 976,950 1,714,300 $186,658,076 $10,000,000 6,159,717 $16,159,717 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,812,325 1,305,163 968,538 1,682,375 $16,836,038 $14,928,838 $14,737,047 $14,681,877 $14,543,038 $185,688,072 $186,172,741 OAKLAND COUNTY, MICHIGAN DELINQUENT TAX REVOLVING FUND PROJECTIONS FOR FISCAL YEARS 2000-2021 ATTACHMENT A4 2017 Protected 2018 Protected 2019 Protected 2020 Projected 2021 Protected 2021 Projected Retained Earnings at Beginning of Year Income: Service Charges Interest Income Total Income Expenses: Operating Expenses Interest Expense Total Expenses Operating Transfers Out: Annual Subsidy - General Fund Investment Income Environmental Infrastructure Work Release Facility Debt Service Rochester District Court Debt Service Airport T-Hangers Debt Service New Office Building Debt Service Oakland Tech. Park Road Project OAKNet (MAN/WAN) Court Replacement System (JIMS) Total Transfers Out Retained Earnings at End of Year $186,649,392 $10,000,000 6.159,430 $16,159,430 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,797,975 1,283,138 958,888 1,649,213 $14,989,214 $186,719,608 $186,719,608 $10,000,000 6,161,747 $16,161,747 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,806,150 1,259,875 948,000 1,614,813 $186,852,517 $186,852,517 $10,000,000 6,166,133 $16,166,133 $500,000 600.000 $1,100,000 $4,100,000 2,200,000 5,000,000 1,785,613 1,235,375 935,875 1,579,175 $185,082,612 $185,082,612 $10,000,000 6.107,726 $16,107,726 $500,000 600.000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,762,600 1,209,634 922,513 1,542,300 $185,353,291 $185,353,291 $10,000,000 6.116,659 $16,116,659 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,787,113 1,182,663 907,913 1,504,188 $185,688,072 $10,000,000 6,127,706 $16,127,706 $500,000 600,000 $1,100,000 $2,100,000 2,200,000 5,000,000 1,731,675 1,154,450 892,075 1,464,838 ATTACHMENT A5 NOTE 1) Service Charges projected at flat $10 million per year. NOTE 2) Interest Income projected at 5.5% of Retained Earnings at Beginning of Year less 40%, for purchase of Delinquent Real Property Taxes from local units. NOTE 3) Operating Expenses projected at eight year average. NOTE 4) Intererst Expense projected at 2.4% of annual $25 million Notes sold. NOTE 5) Environmental Infrastructure projected to continue beyond current expiration of 2003. NOTE 6) Annual Subsidy to General Fund increased in 2001 to fund Jail Improvements. tXfllOiL rt-o Page 11 OAKLAND COUNTY, MICHIGAN ATTACHMENT B1 Debt Retirement Schedule WORK RELEASE FACILITY (Including Funding for the Jail Management System and Video Conferencing Facilities and Equipment) FY2003 thru FY2022 4.95% INTEREST $1,151,280 1,117,463 1,075,388 1,032,075 987,525 941,738 894,713 846,450 795,713 743,738 689,288 632,363 574,200 512,325 447,975 381,150 310,613 237,600 162,113 81,675 $13,615,380 CAPITAL COSTS ISSUANCE COSTS TOTAL COST YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 . TOTAL COST $23,000,000 400,000 $23,400,000 PRINCIPAL $825,000 850,000 875,000 900,000 925,000 950,000 975,000 1,025,000 1,050,000 1,100,000 1,150,000 1,175,000 1,250,000 1,300,000 1,350,000 1,425,000 1,475,000 1,525,000 1,625,000 1,650,000 $23,400,000 TOTAL DTRF ANNUAL INTERST DEBT EARNINGS SERVICE 5.50% $1,976,280 $1,287,000 1,967,463 1,178,305 1,950,388 1,070,094 1,932,075 962,823 1,912,525 856,559 1,891,738 751,370 1,869,713 647,324 1,871,450 544,490 1,845,713 441,560 1,843,738 340,046 1,839,288 238,641 1,807,363 137,480 1,824,200 38,075 1,812,325 1,797,975 1,806,150 1,785,613 1,762,600 1,787,113 1,731,675 $37,015,380 NET BOND COST $689,280 789,158 880,293 969,252 1,055,966 1,140,368 1,222,388 1,326,960 1,404,152 1,503,691 1,600,647 1,669,883 1,786,125 1,812,325 1,797,975 1,806,150 1,785,613 1,762,600 1,787,113 1,731,675 $8,493,766 $28,521,614 Exhibit A-6 Page 12 OAKLAND COUNTY, MICHIGAN Debt Retirement Schedule ROCHESTER (52-3) DISTRICT COURT FY2003 thru FY2022 ATTACHMENT B2 CAPITAL COSTS ISSUANCE COSTS TOTAL COST YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL COST $16,900,000 300,000 $17,200,000 PRINCIPAL $600,000 625,000 675,000 700,000 725,000 750,000 775,000 800,000 825,000 850,000 875,000 900,000 925,000 950,000 975,000 1,000,000 1,025,000 1,050,000 1,075,000 1,100,000 $17,200,000 4.95% INTEREST $846,240 821,700 790,763 757,350 722,700 686,813 649,688 611,325 571,725 530,888 488,813 445,500 400,950 355,163 308,138 259,875 210,375 159,638 107,663 54,450 $9,779,753 TOTAL ANNUAL DEBT SERVICE $1,446,240 1,446,700 1,465,763 1,457,350 1,447,700 1,436,813 1,424,688 1,411,325 1,396,725 1,380,888 1,363,813 1,345,500 1,325,950 1,305,163 1,283,138 1,259,875 1,235,375 1,209,638 1,182,663 1,154,450 $26,979,753 DTRF INTERST EARNINGS 5.50% $946,000 866,457 786,888 706,271 626,117 546,494 467,469 389,111 311,488 234,668 158,720 83,710 9,707 $6,133,101 NET BOND COST $500,240 580,243 678,874 751,079 821,583 890,319 957,219 1,022,214 1,085,237 1,146,219 1,205,093 1,261,790 1,316,243 1,305,163 1,283,138 1,259,875 '1,235,375 1,209,638 1,182,663 1,154,450 $20,846,652 NOTE: Financing of the Sheriffs Substation, which will be built in conjunction with this project, is the responsibility of the City of Rochester Hills Exhibit A-6 Page 13 OAKLAND COUNTY, MICHIGAN Debt Retirement Schedule RENOVATE NEW OFFICE BUILDING FY2004 thru FY2023 ATTACHMENT B3 CAPITAL COSTS ISSUANCE COSTS TOTAL COST YEAR 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TOTAL COST $22,000,000 400,000 $22,400,000 PRINCIPAL $875,000 900,000 925,000 950,000 975,000 1,000,000 1,025,000 1,050,000 1,075,000 1,100,000 1,125,000 1,150,000 1,175,000 1,200,000 1,225,000 1,250,000 1,275,000 1,300,000 1,325,000 1,500,000 $22,400,000 4.95% INTEREST $1,102,080 1,065,488 1,020,938 975,150 928,125 879,863 830,363 779,625 727,650 674,438 619,988 564,300 507,375 449,213 389,813 329,175 267,300 204,188 139,838 74,250 $12,529,155 TOTAL ANNUAL DEBT SERVICE $1,977,080 1,965,488 1,945,938 1,925,150 1,903,125 1,879,863 1,855,363 1,829,625 1,802,650 1,774,438 1,744,988 1,714,300 1,682,375 1,649,213 1,614,813 1,579,175 1,542,300 1,504,188 1,464,838 1,574,250 $34,929,155 DTRF INTERST EARNINGS 5.50% $1,232,000 1,123,261 1,015,159 908,132 802,249 697,577 594,185 492,140 391,510 292,365 194,771 98,796 4,510 $7,846,654 NET BOND COST $745,080 842,227 930,779 1,017,018 1,100,876 1,182,285 . 1,261,178 1,337,485 1,411,140 1,482,073 1,550,217 1,615,504 1,677,865 1,649,213 1,614,813 1,579,175 1,542,300 1,504,188 1,464,838 1,574,250 $27,082,501 Exhibit A-0 Page 14 OAKLAND COUNTY, MICHIGAN Debt Retirement Schedule AIRPORT T- HANGERS FY2003 thru FY2022 CAPITAL COSTS ISSUANCE COSTS TOTAL COST YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL COST $12,000,000 250,000 $12,250,000 PRINCIPAL $375,000 400,000 425,000 450,000 475,000 500,000 525,000 550,000 575,000 600,000 625,000 650,000 675,000 700,000 725,000 750,000 775,000 800,000 825,000 850,000 $12,250,000 TOTAL ANNUAL 4.95% DEBT INTEREST SERVICE $602,700 $977,700 587,813 987,813 568,013 993,013 546,975 996,975 524,700 999,700 501,188 1,001,188 476,438 1,001,438 450,450 1,000,450 423,225 998,225 394,763 994,763 365,063 990,063 334,125 984,125 301,950 976,950 268,538 968,538 233,888 958,888 198,000 948,000 160,875 935,875 122,513 922,513 82,913 907,913 42,075 892,075 $7,186,200 $19,436,200 DTRF INTERST EARNINGS 5.50% $673,750 619,977 565,647 511,031 456,198 401,214 346,149 291,070 236,045 181,143 126,431 71,977 17,850 $4,498,480 ATTACHMENT B4 NET BOND COST $303,950 367,836 427,366 485,944 543,503 599,974 655,289 709,380 762,180 813,620 863,632 912,148 959,100 968,538 958,888 948,000 935,875 922,513 907,913 892,075 $14,937,720 YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 . TOTAL $37,015,380 WORK RELEASE FACILITY $1,976,280 1,967,463 1,950,388 1,932,070 1,912,525 1,891,738 1,869,713 1,871,450 1,845,713 1,843,738 1,839,288 1,807,363 1,824,200 1,812,325 1,797,975 1,806,150 1,785,613 1,762,600 1,787,113 1,731,675 Exhibit A-6 Page 15 OAKLAND COUNTY, MICHIGAN SUMMARY OF ANNUAL DEBT SERVICE Major Capital Projects FY2003 thru FY2023 ATTACHMENT Cl ROCHESTER DISTRICT COURT $1,446,240 1,446,700 1,465,763 1,457,350 1,447,700 1,436,813 1,424,688 1,411,325 1,396,725 1,380,888 1,363,813 1,345,500 1,325,950 1,305,163 1,283,138 1,259,875 1,235,375 1,209,634 1,182,663 1,154,450 $26,979,753 AIRPORT T-HANGERS $977,700 987,813 993,013 996,975 999,700 1,001,188 1,001,438 1,000,450 998,225 994,763 990,063 984,125 976,950 968,538 958,888 948,000 935,875 922,513 907,908 892,075 $19,436,200 NEW OFFICE BUILDING $1,977,080 1,965,488 1,945,938 1,925,150 1,903,125 1,879,863 1,855,363 1,829,625 1,802,650 1,774,438 1,744,988 1,714,300 1,682,375 1,649,213 1,614,813 1,579,175 1,542,300 1,504,188 1,464,833 1,574,250 $34,929,155 TOTAL ANNUAL DEBT SERVICE $4,400,220 6,379,056 6,374,652 6,332,333 6,285,075 6,232,864 6,175,702 6,138,588 6,070,288 6,022,039 5,967,602 5,881,976 5,841,400 5,768,401 5,689,214 5,628,838 5,536,038 5,437,047 5,381,872 5,243,033 1,574,250 $118,360,488 • OAKLAND COUNTY, MICHIGAN SUMMARY OF NET BOND COST Major Capital Projects FY2003 thru FY2023 ATTACHMENT C2 YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TOTAL 928,521,614 WORK RELEASE FACILITY $689,280 789,158 880,293 969,252 1,055,966 1,140,368 1,222,388 1,326,960 1,404,152 1,503,691 1,600,647 1,669,883 1,786,125 1,812,325 1,797,975 1,806,150 1,785,613 1,762,600 1,787,113 1,731,675 Exhibit A-6 Page 16 ROCHESTER DISTRICT COURT $500,240 580,243 678,874 751,079 821,583 890,319 957,219 1,022,214 1,085,237 1,146,219 1,205,093 1,261,790 1,316,243 1,305,163 1,283,138 1,259,875 1,235,375 1,209,638 1,182,660 1,154,450 $20,846,652 AIRPORT T-HANGERS $303,950 367,836 427,366 485,944 543,503 599,974 655,289 709,380 762,180 813,620 863,632 912,148 959,100 968,538 958,888 948,000 935,875 922,513 907,909 892,075 $14,937,720 NEW OFFICE BUILDING $745,080 842,227 930,779 1,017,018 1,100,876 1,182,285 1,261,178 1,337,485 1,411,140 1,482,073 1,550,217 1,615,504 1,677,865 1,649,213 1,614,813 1,579,175 1,542,300 1,504,185 1,464,838 1,574,250 927,082,501 TOTAL NET BOND COST $1,493,470 2,482,317 2,828,760 3,137,054 3,438,070 3,731,537 4,017,181 4,319,732 4,589,054 4,874,670 5,151,445 5,394,038 5,676,972 5,763,891 5,689,214 5,628,838 5,536,038 5,437,051 5,381,867 5,243,038 1,574,250 $91,388,487 2023 1,574,250 TOTAL $118,360,488 OAKLAND COUNTY, MICHIGAN SUMMARY STATEMENT DIFFERENCE BETWEEN ANNUAL DEBT SERVICE AND NET BOND COST FY2003 thru FY2023 ATTACHMENT C3 YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ANNUAL DEBT SERVICE $4,400,220 6,379,056 6,374,652 6,332,333 6,285,075 6,232,864 6,175,702 6,138,588 6,070,288 6,022,039 5,967,602 5,881,976 5,841,400 5,768,401 5,689,214 5,628,838 5,536,038 5,437,047 5,381,872 5,243,033 NET BOND COST $1,493,470 2,482,317 2,828,760 3,137,054 3,438,070 3,731,537 4,017,181 4,319,732 4,589,054 4,874,670 5,151,445 5,394,038 • 5,676,972 5,763,895 5,689,214 5,628,836 5,536,038 5,437,047 5,381,872 5,243,033 1,574,250 $91,388,487 DIFFERENCE $2,906,750 3,896,739 3,545,892 3,195,279 2,847,005 2,501,327 2,158,521 1,818,856 1,481,234 1,147,369 816,157 487,938 164,428 4,506 0 0 0 0 0 0 0 $26,972,001 . William Caddell, County Clerk Resolution #02042 March 14, 2002 Moved by Douglas supported by Amos the resolution be adopted. AYES: Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield, Law, McPherson, Melton, Middleton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel, Brian. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolution was adopted. FOREGOING :.'3E,F)Ot /1-70 2- Date I HEREPY L. Brooks Patta son. County Ex oci)tiVe STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 March 14, 2002 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 14 th day of March, 2002.