Sewer Debt Refinancing Gets Final OK

Final approval to refinance debt for a sewer system on the county’s west side was given by Washtenaw County commissioners at their Feb. 20, 2013 meeting. The refinancing, which is intended to save about $110,000 in interest payment, got initial approval at the county board’s Feb. 6, 2013 meeting. [.pdf of bond resolution]

The resolution authorizes the sale of refunding bonds that would be used to pay the remaining principal on existing bonds that were sold in 2004. That year, the county sold $5.115 million in bonds to help Lyndon and Sylvan townships pay for the sewer. Of that amount, $2.25 million remains to be repaid. According to a staff memo, the project built sewers at Cavanaugh, Sugar Loaf, Cassidy, Crooked, and Cedar Lakes. It’s funded through special assessments on property around those lakes and payments by the Sugar Loaf Lake State Park and Cassidy Lake State Corrections Facility.

The staff memo also states that additional funds might be available from special assessment prepayments and connection fees paid by the state of Michigan. These funds might reduce the total refunding bond amount even more, and would increase the savings.

This sewer system is separate from a controversial water and wastewater treatment plant project in Sylvan Township. For more background on that project, see Chronicle coverage: “County Board OKs Sylvan Twp. Contract.”

This brief was filed from the boardroom of the county administration building at 220 N. Main. A more detailed report will follow: [link]