HomeMy WebLinkAboutResolutions - 2007.03.08 - 28471MISCELLANEOUS RESOLUTION #07025 March 8, 2007
BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON_
IN RE: RESOLUTION AUTHORIZING THE COUNTY OF OAKLAND TO
PROCEED WITH THE CREATION OF A TRUST WHICH WILL ISSUE RETIREES
HEALTH CARE CERTIFICATES OF PARTICIPATION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, the Board of Commissioners (the "Commission") of
the County of Oakland, Michigan (the "County"), wishes to cause
a trust to be created which will issue retirees health care
certificates of participation to fund 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"); and
WHEREAS, in order to expedite the Retirees Health Care
Project and the issuance of the retirees health care
certificates of participation (the "COPS"), the County wishes to
authorize the County Executive and the Voluntary Employees'
Beneficiary Association to take necessary steps to begin the
process which includes creating the trust and causing the COPS
to the issued; and
WHEREAS, in addition, the County wishes to authorize the
Oakland County Fringe Benefit Fund to advance moneys to enable
the process of creating the trust and causing the COPS to the
issued to begin; and
WHEREAS, the County also wishes to ensure that the Oakland
County Fringe Benefit Fund be reimbursed for any advance it
makes in connection with the Retirees Health Care Project.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE COUNTY OF OAKLAND, MICHIGAN, 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. Authorize Expenditures from Oakland County Fringe
Benefit Fund: The Oakland County Fringe Benefit Fund is hereby
authorized to advance moneys to enable the process of creating
the trust and causing the COPS to the issued to begin.
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Zack absent.
3. Reimbursement: The Oakland County Fringe Benefit Fund
shall be reimbursed from the proceeds of the COPS any moneys
that were advanced in connection with the Retirees Health Care
Project.
4. Retention of Counsel. The firm of Axe & Ecklund,
P.C., attorneys of Grosse Pointe Farms, Michigan, shall be
retained by the trust to be created in connection with the
issuance, sale and delivery of the COPS.
5. Retention of Financial Consultants. Municipal
Financial Consultants Incorporated, Grosse Pointe Farms,
Michigan, shall be retained by the trust to be created in
connection with the issuance, sale and delivery of the COPS.
6. Conflicting Resolutions. All resolutions and parts of
resolutions in conflict with the foregoing are hereby rescinded.
7. Effective Date. This Resolution shall become
effective immediately upon its adoption and shall be recorded in
the minutes of the Board of Commissioners as soon as practicable
after adoption.
BE IT FURTHER RESOLVED that sufficient funding exists in
the Fringe Benefit Fund to advance moneys to enable the process
of creating the trust and causing the COPS to the issued to
begin, no budget amendment is required.
Chairperson, on behalf of the Finance Committee, I move the
adoption of the foregoing resolution.
FINANCE COMMITTEE
2
EXHIBIT A
Retirees Health Care Project Description
The Retirees Health Care Project consists of a plan to create a
trust which will 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. The trust's obligations need to
be repaid by contract payments to be made by the County of
Oakland over the life of the debt. 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) $500,000,000
Estimated amount of Certificates
of Participation to be issued: $500,000,000
Maximum term of issue: 21 years
Las.rl-ocvb5
Resolution #07025 March 8, 2007
Moved by Rogers supported by Gershenson the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Burns, Coleman, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory,
Greimel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott,
Spector, Suarez, Woodward, Zack, Bullard. (25)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda, were adopted (with accompanying reports being accepted).
I HEREBY APPROVE THE FOREGOING RESOLUTION
ACTING PURSUANT 10 1973 PA 13,
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 March 8, 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 8th day of March, 2007.
Ruth Johnsbn, County Clerk