Stories indexed with the term ‘debt policy’

Washtenaw County commissioners have given final approval to a new way to pay off debt incurred from bonding, typically for public works projects in local municipalities. The vote occurred at the county board’s Oct. 2, 2013 meeting, following initial approval on Sept. 18.

The change will allow local units of government to repay bonds early – via the county’s delinquent tax revolving fund (DTRF), which is administered by the county treasurer. The intent is to reduce interest rate payments while posing no financial risk to the county, according to a staff memo.

The maximum amount of the advance would be $1 million, with a term of 10 years or less. The action would require approval by both the treasurer and the board … [Full Story]

Washtenaw County board of commissioners meeting (Sept. 18, 2013): With a third of the nine-member board absent, commissioners dispatched their business in one of the shortest sessions in recent memory, lasting only 45 minutes. The early adjournment elicited a round of applause from staff in attendance – the previous meeting on Sept. 4 had lasted about five hours.

Even so, a wide range of resolutions were passed – mostly with no discussion. The absence of three commissioners also led to non-votes on two items originally on the agenda, out of concern that there would not be sufficient support to pass them.

During the meeting, the board postponed a final vote on a countywide micro loan program for small business. Under the county board rules, a resolution requires votes from “a majority of the members elected and serving” in order to pass – that is, five votes. Supporters of the resolution weren’t certain they could achieve that number. A resolution regarding the state’s “Stand Your Ground” law had been pulled from the agenda earlier in the day for the same reason.

Opponents of the “Stand Your Ground” resolution – which called on the state legislature to repeal the law enacted in 2006 – had been expected to appear at the meeting in force, prompting county administration to add extra security. However, after the resolution was pulled, only a handful of people attended to speak against it, as did one supporter.

In another resolution that addressed a statewide issue, commissioners voted to direct staff to explore options – including possible legal action – to help set cleanup criteria in Michigan for the carcinogen 1,4-dioxane. In part, the item relates to a 1,4 dioxane plume stemming from contaminants at the former Gelman Sciences plant, west of Ann Arbor.

Dan Smith (R-District 2) stated “present” during that vote, rather than voting for or against the resolution – because board rules do not allow for abstention. After the meeting, corporation counsel Curt Hedger told The Chronicle that he’d be looking at the board rules to determine how Smith’s vote will be recorded. Hedger pointed out that the resolution needed five votes to pass, which it garnered even without Smith’s vote.

Commissioners also gave initial approval for a new approach to paying off debt incurred from bonding – typically for public works projects in local municipalities. The proposal would allow local units of government to repay bonds early via the county’s delinquent tax revolving fund (DTRF), which is administered by the county treasurer. The intent is to reduce interest rate payments and the county’s debt burden. In a related resolution, commissioners gave initial approval to restructuring debt held by Bridgewater Township, using this new approach.

Several items that received initial approval at the board’s previous meeting on Sept. 4 were passed in a final vote on Sept. 18 with minimal discussion, including: (1) strengthening the county’s affirmative action plan, as well as other nondiscrimination in employment-related policies; (2) authorizing a range of grants administered by the county’s office of community & economic development, as well as a resolution that would give blanket approval in the future to nearly 30 annual entitlement grants received by the county; (3) adding three new full-time jobs for stewardship of the county nature preserves; (4) adding a new 10-bed treatment program for female teens in the county’s youth center that will create a net increase of 5.46 jobs; and (5) budgets for the county’s public health and community support & treatment service (CSTS) departments.

And after postponing action on Sept. 4, the board voted to create a 13-member community advisory group to look at options for the county-owned Platt Road site in Ann Arbor. The Sept. 18 resolution was much more general in its direction than the one that was debated on Sept. 4, stripping out most of the details related to a previous focus on affordable housing.

Also on Sept. 18 as an item of communication, Yousef Rabhi updated the board on plans to fill a vacancy on the county road commission, which will result from the recent appointment of current road commissioner Ken Schwartz as Superior Township supervisor. Applications for the road commissioner job are being accepted until Sept. 25, with the county board likely making an appointment at its Oct. 2 meeting. [Full Story]

A new way to pay off debt incurred from bonding – typically for public works projects in local municipalities – was given initial approval by the Washtenaw County board of commissioners at its Sept. 18, 2013 meeting. The proposal would allow local units of government to repay bonds early via the county’s delinquent tax revolving fund (DTRF), which is administered by the county treasurer. The intent is to reduce interest rate payments while posing no financial risk to the county, according to a staff memo.

The maximum amount of the advance would be $1 million, with a term of 10 years or less. The action would require approval by both the treasurer and the board of commissioners. Several other criteria for … [Full Story]

At its June 20, 2011 meeting, the Ann Arbor city council adopted a new fund balance policy to comply with the Governmental Accounting Standards Board (GASB) Statement No. 54, and revised the city’s debt policy to include two new sections – one on defeasance of debt and another on inter-fund loans.

The new GASB standard requires a finer-grained explication of the components of a fund balance. The breakdown of fund balance categories is: (1) non-spendable – not in spendable form or legally/contractually unable to be spent; (2) restricted – constraints on funds placed by creditors or through enabling legislation; (3) committed – specific constraints placed on use of funds by the city council (for example, funds set aside by council resolution); (4) assigned – constrained by the intent of the city, but not restricted or committed (for example, those funds to which authority for assignment is given to the chief financial officer); and (5) unassigned – fund balance that does not fit into any other classification. [.pdf of fund balance policy]

The debt policy as it relates to inter-fund loans includes a provision that addresses the ability of the city to make loans to specific funds from the investment pool. [The city invests its fund balances in a pool, not for each fund.] The policy notes that while such inter-fund loads may be prudent in certain situations, they are ultimately backed by the city’s general fund. So such inter-fund loans should only be approved if the credit worthiness is high for the fund to which a loan is made. [.pdf of debt management policy]

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link] [Full Story]