Loading...
HomeMy WebLinkAboutResolutions - 2007.01.04 - 28417MISCELLANEOUS RESOLUTION #07001 January 4, 2007 BY: FINANCE COMMITTEE - Mike Rogers, Chairperson IN RE: RESOLUTION AUTHORIZING THE INSERTION OF NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO ISSUE RETIREES HEALTH CARE BONDS TO THE OAKLAND COUNTY BOARD OF COMM:SSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, the Board of Commissioners (the "Commission") of the County of Oakland, Michigan (the "County"), wishes to issue bonds for the purpose of providing funding for the Health Care Trust Fund which has been or will be established to pay post- employment health care benefits for public employee retirees of the County as described in EXHIBIT A attached hereto (the "Retirees Health Care Project"), pursuant to the terms of Section 518 of Act No. 34, Public Acts of Michigan, 2001 as amended ("Act 34"); and WHEREAS, in order to expedite the Retirees Health Care Project and the issuance of the retirees health care bonds (the "Retirees Health Care Bonds"), it is necessary to insert a Notice of Intention of the County of Oakland to Issue Retirees Health Care Bonds pursuant to Act 34 in the Oakland Press, Pontiac, Michigan; and WHEREAS, there has been prepared and attached hereto as APPENDIX I a form of notice entitled "NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO ISSUE RETIREES HEALTH CARE BONDS AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON" (the "Notice of Intention"); and WHEREAS, the Oakland County Clerk shall be authorized to insert the attached form of Notice of Intention in the Oakland Press, Pontiac, Michigan. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF OAKLAND, M:CHIGAN, AS FOLLOWS: 1. Approval of Plans: The preliminary plans and estimates relating to the Retirees Health Care Project and identified in EXHIBIT A attached hereto are hereby approved and ordered filed with the County Clerk. 2. Insertion of Notice of Intent: It is hereby determined that the Notice of Intention provides information sufficient to adequately inform the electors and taxpayers of the County of the nature of the obligations to be undertaken by the County by the issuance of the Retirees Health Care Bonds and of their right under Act 34 to file a petition requesting a referendum election on the issuance of the Retirees Health Care Bonds. 3. Form of Notice of Intent: The form and content of the Notice of Intention as set forth in Appendix I, are hereby approved, and the Oakland County Clerk is hereby authorized and directed to cause the Notice of Intention to be published once in the Oakland Press, Pontiac, Michigan, a newspaper of general circulation within the County which is hereby determined to be the newspaper reaching the largest number of electors and taxpayers of the County. The notice shall be inserted in an advertisement at least one-quarter of a page in size. 4. Referendum Period: The referendum period within which voters and taxpayers shall have the right to circulate petitions is 60 days after publication of the notice of intention authorized in paragraph 2. 5. Retention of Bond Counsel. The firm of Axe & Ecklund, P.C., attorneys of Grosse Pointe Farms, Michigan, is hereby retained to act as bond counsel for the County in connection with the issuance, sale and delivery of the Retirees Health Care Bonds. 6. Retention of Financial Consultants. Municipal Financial Consultants Incorporated, Grosse Pointe Farms, Michigan, is hereby retained to act as financial consultant and advisor to the County in connection with the issuance, sale and delivery of the Retirees Health Care Bonds. 7. Conflicting Resolutions. All resolutions and parts of resolutions in conflict with the foregoing are hereby rescinded. 8. Effective Date. This Resolution shall become effective immediately upon its adoption and the signing into law of Enrolled House Bill No. 6694 passed in December of 2006 by the Michigan Legislature and shall be recorded in the minutes of the Board of Commissioners as soon as practicable after adoption. A roll call vote on the foregoing resolution was then taken, and was as follows: YES: NO: ABSTAIN: The resolution was declared adopted. Las.rl-oak176 2 STATE OF MICHIGAN ) s s COUNTY OF OAKLAND CERTIFICATION The undersigned, being the Clerk of the County of Oakland, hereby certifies that the foregoing is a true and complete copy of a resolution duly adopted by the County of Oakland Board of Commissioners at its meeting held on the day of , 200 , at which meeting a quorum was present and remained through-Out and that an original thereof is on file in the records of the County. I further certify that the meeting was conducted, and public notice thereof was given, pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976, as amended, and that minutes of such meeting were kept and will be or have been made available as required thereby. COUNTY CLERK DATED: , 200 las.rl-oak176 3 EXHIBIT A Retirees Health Care Project Description The Retirees Health Care Project consists of a plan to issue long-term general obligation debt to pre-fund long-term retiree health care obligations and other post employment benefits paid on behalf of Oakland County employees who retire from county service and who have the adequate vesting and service benefit level requirements. Based upon the most recent Actuarial Valuation Report as of September 30, 2005, for the Oakland County Retirees' Health Care Trust, the Trust is 35.3% funded leaving an unfunded accrued liability of approximately $486.7 million. Enrolled House Bill 6694 approved by the Michigan State Legislature on December 15, 2006, enables the county to issue general obligation bonds for an amount up to 75% of the unfunded accrued liability. As a result of Oakland County's AAA bond rating and based on market conditions, the estimated average annual interest rate which will be secured for the long-term debt issuance is expected to be significantly less than the long-term investment rate of the Trust Fund and will result in significant additional earnings on the Trust assets. This in turn will reduce the annual costs which must be paid out each year to meet the County's obligations to its retirees for health care and other post-employment obligations. Cost Estimates Funds to be deposited with Trustee & Financing Costs (Including Bond Discount and Project Contingency) $365,000,000 Maximum amount of bonds to be issued: $365,000,000 Maximum term of bond issue: 21 years Las.rl-oak176 APPENDIX I NOTICE OF INTENT:ON OF THE COUNTY OF OAKLAND TO ISSUE NOT TO EXCEED $365,000,000 IN RETIREES HEALTH CARE BONDS AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON TO ALL ELECTORS AND TAXPAYERS OF THE COUNTY OF OAKLAND: NOTICE IS HEREBY GIVEN that the Board of Commissioners of the County of Oakland, Michigan (the "County"), will authorize the issuance of not to exceed $365,000,000 in Retirees Health Care Bonds to provide for the increased funding of the Health Care Trust Fund which has been established to pay post- employment health care benefits for public employee retirees of the County as described in Exhibit A below (the "Retirees Health Care Project"). The Bond Resolution will provide further that the County will finance seventy-five percent (75%) of the total cost of the Retirees Health Care Project by the issuance of one or more series of Retirees Health Care Bonds (the "Bonds") pursuant to the provisions of Section 518 of Act No. 34, Public Acts of Michigan, 20C1, as amended ("Act 34"). The maximum amount of Bonds to be issued in one or more series shall not exceed $365,000,000, the term of the Bonds shall not exceed 21 years and the Bonds shall bear interest at a rate or rates that will result in a maximum net interest rate of not more than 6.5% per annum. The maximum Retirees Health Care Project cost is estimated at not to exceed $365,000,000. FULL FAITH AND CREDIT AND TAXING POWER OF THE COUNTY OF OAKLAND WILL BE PLEDGED NOTICE IS FURTHER GIVEN that in the Bond Resolution the County will obligate itself to make payments to the bond holders in amounts sufficient to nay the principal of and interest on the Bonds. The limited tax full faith and credit of the County will be pledged for the making of such bond payments. Pursuant to such pledge of its full faith and credit, the County will be obligated to levy such ad valorem taxes upon all taxable property in the County as shall be necessary to make bond payments, which taxes, however, will be subject to applicable statutory and constitutional limitations on the taxing power of the County. In addition to its obligation to make payments on the Bonds, the County will agree in the Bond Resolution to pay all costs and expenses of operation and maintenance of the Retirees Health Care Project and all expenses of the County incidental to the issuance and payment of the Bonds, to the extent such expenses are not payable from the proceeds of the Bonds. RIGHT TO PETITION FOR REFERENDUM NOTICE IS FURTHER GIVEN to the electors and taxpayers of the County to inform them of the right to petition for a referendum on the question of issuing the bonds. The County intends to issue the bonds without a vote of the electors thereon. If, within 60-days after publication of this notice, a petition for referendum requesting an election on the Bonds, signed by not less than 5% or 10,000 of the registered electors of the County, whichever is less, has been filed with the County Clerk, the Bonds shall not be issued unless and until approved by a majority of the electors of the County voting thereon at a general or special election. This notice is given by order of the Board of Commissioners pursuant to Act 34. Further information may be obtained at the office of the Oakland County Clerk, County Service Center, Building #12 East, 1200 N. Telegraph, Pontiac, Michigan 48341. EXHIBIT A Retirees Health Care Project Description The Retirees Health Care Project consists of a plan to issue long-term general obligation debt to pre-fund long-term retiree health care obligations and other post employment benefits paid on behalf of Oakland County employees who retire from county service and who have the adequate vesting and service benefit level requirements. Based upon the most recent Actuarial Valuation Report as of September 30, 2005, for the Oakland County Retirees' Health Care Trust, the Trust is 35.3% funded leaving an unfunded accrued liability of approximately $486.7 million. Enrolled House Bill 6694 approved by the Michigan State Legislature on December 15, 2006, enables the county to issue general obligation bonds for an amount up to 75% of the unfunded accrued liability. As a result of Oakland County's AAA bond rating and based on market conditions, the estimated average annual interest rate which will be secured for the long-term debt issuance is expected to be significantly less than the long-term investment rate of the Trust Fund and will result in significant additional earnings on the Trust assets. This in turn will reduce the annual costs which must be paid out each year to meet the County's obligations to its retirees for health care and other post-employment obligations. 3 Cost Estimates Funds to be deposited with Trustee & Financing Costs (Including Bond Discount and Project Contingency) $365,000,000 Maximum amount of bonds to be issued: $365,000,000 Maximum term of bond issue: 21 years RUTH A. JOHNSON COUNTY CLERK DATED: [Date of Publication] Las.rl-oak176 Ruth Johnson, County Clerk Os" Resolution #07001 January 4, 2007 Moved by Rogers supported by Woodward the resolution be adopted. AYES: Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Suarez, Woodward, Zack, Bullard, Burns, Coleman, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel. (25) NAYS: None, (0) A sufficient majority having voted in favor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, 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 January 4, 2007, 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 4th day of January, 2007.