County Bond Re-funding Gets Initial OK

Two resolutions related to re-funding of bonds previously issued by Washtenaw County were given initial approval by the county board of commissioners at its May 16, 2012 meeting. The action – advised by the county’s bond counsel, John Axe of Axe & Ecklund of Grosse Pointe Farms – consolidates two previous bond issues and is expected to save $889,000 over the life of the bond repayments. A second, final vote is required and will likely be on the board’s June 6 agenda.

The county board approved a bond sale of $6.365 million in 2004 to fund energy efficiency improvements in county facilities. Chevron Energy Solutions was hired to oversee that effort, which is known as the Chevron project. About $4.69 million in principle is owed on that bond. [Commissioners were last updated on this project at their June 2010 working session.]

In 2005, the board approved a bond sale of $11.475 million to re-fund a 1999 bond issued for projects that included capital improvements for the juvenile detention center, buildings at 110 N. Fourth and 200 N. Main, and the environmental services building on Zeeb Road. About $7.835 million in principle is still owed on that bond issue.

Because of current low interest rates, Axe has advised the county board to authorize the sale of a single re-funding bond issue not to exceed $12.35 million. Commissioners gave initial approval to that action, as well as to a separate resolution authorizing continued disclosure on the re-funding bond issue, as required by the U.S. Securities & Exchange Commission (SEC). The re-funding bonds will be called the County of Washtenaw Capital Improvement Re-funding Bond Series 2012.

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