The board had created the road funding committee on June 4, 2014, after debating whether to levy a countywide road millage or put a millage proposal on the Nov. 4, 2014 ballot to fund road repair. The final vote to create the committee had been 6-1 vote, over dissent from Conan Smith (D-District 9). Commissioners Yousef Rabhi (D-District 8) and Dan Smith (R-District 2) were absent.

In arguing against levying a tax at that time, some commissioners cited the need to study funding options – including a possible Act 283 levy, which doesn’t require voter approval – before making a decision.

Members appointed are:

• Lew Kidder, representing the general public
• Bill McFarlane, representing the road commission
• Roy Townsend, managing director of the road commission
• Rolland Sizemore Jr., the county board of commissioners’ liaison to the road commission
• Dan Smith, county commissioner
• Kent Martinez-Kratz, county commissioner
• Rodrick Green, Superior Township trustee, representing townships
• Steve Powers, Ann Arbor city administrator, representing incorporated municipalities
• Ryan Buck, director of the Washtenaw Area Transportation Study (WATS)

The resolution directs the committee to meet within 60 days of this appointment to elect officers and draft bylaws. The committee is to report to the county board at its Sept. 17, 2014 meeting, and make quarterly updates after that with a final report due in December 2015.

The county administrator will help provide administrative support to the committee.

For additional Chronicle coverage on road-related issues, see: “County Board Continues Weighing Road Tax,” “County Board Debates Expanded Road Commission,” “County Board Sets Hearing on Road Tax,” “County Considers Road Funding Options,” “No Major Change Likely for Road Commission” and “Group Explores Road Commission’s Future.”

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

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 using a DTRF advance are proposed:

• The approval of an advance would be considered only for the county’s own indebtedness, and would result in a reduction in the County’s bonded indebtedness.
• The local unit receiving the benefit agrees to contribute at least 10% of the outstanding principal amount of the debt toward the reduction of the bonded debt and to amend its contractual agreement with the county to include a new payment schedule and new interest rate(s).
• A refunding bond analysis must be performed to examine the potential for savings by selling refunding bonds.
• The estimated cost of issuance for a refunding bond is 25% or greater than the estimated interest savings from the refunding bond sale.
• The local unit has a bond rating in the top two tiers of a standard rating service, or if the local unit is too small to warrant a rating, a review of the most recent audit of the local unit shows that they are not experiencing fiscal stress.
• The interest rate of the advance will be determined by the county treasurer and will exceed the rate of return received by the county treasurer in her/his pooled accounts.
• The amended contract with the local unit will provide a process by which the county treasurer can adjust the interest rate.

During brief deliberations, Dan Smith (R-District 2) proposed amending the requirement for “the most recent audit,” substituting the phrase “recent financial reports.” It was considered a friendly amendment.

In a related resolution, commissioners gave initial approval to restructuring debt held by Bridgewater Township. The township owes $585,000 on $1.095 million in bonds issued in 2004 to fund a sewer system. County treasurer Catherine McClary has agreed to loan the township money to pay off the bonds. The township will repay the treasurer’s office at a lower interest rate than it was paying for the bond debt, which was averaging 4.1%. The rate will provide a greater rate of return than the treasurer is currently getting on investments, according to a staff memo.

The amount of the advance from the treasurer’s office is $430,000, loaned to Bridgewater Township over nine years at a starting interest rate of 2%. The township will use an additional $172,000 to pay down the existing principal on its bond debt. The transaction will cost about $6,000 in legal fees, which the township will pay. [.pdf of staff memo on Bridgewater Township debt]

Both resolutions are expected to be considered for a final vote on Oct. 2.

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