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MACDC Intercounty Drain Procedures Training. Project Financing Alternatives. Stacy Hissong Fahey Schultz Burzych Rhodes PLC. February 15, 2017 macdc.us. summary. Revolving Funds Notes vs. Bonds Tax Exempt Status Bond Counsel Financial Advisor Filing Requirements Plan Ahead.
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MACDCIntercounty Drain Procedures Training Project Financing Alternatives Stacy Hissong Fahey Schultz Burzych Rhodes PLC February 15, 2017 macdc.us
summary • Revolving Funds • Notes vs. Bonds • Tax Exempt Status • Bond Counsel • Financial Advisor • Filing Requirements • Plan Ahead macdc.us
Revolving Funds • May be used for intercounty drains • Board Treasurer’s fund utilized • Agree to terms for replenishment macdc.us
Interim Financing for Petitioned Projects • Determining Amount • Timing • Obtaining Bids • Terms for Repayment • Filing Requirements macdc.us
Financing for Petitioned Projects • Bonds vs. Notes • Term • Repayment of interim borrowings • Prepayments • Filing requirements macdc.us
Financing for §196 Maintenance projects • Term and amount • Note • Filing Requirements macdc.us
Filings • MI Treasury: Qualifying Statement Form 5047 • MI Treasury: Security Report Form 3892 • IRS: Form 8038-GC/Form 8038-G • SEC: Official Statement macdc.us
Michigan Revised Municipal Finance Act (2001 PA 34 or “Act 34”) • Security Report • Competitive or Negotiated Sale • Qualifying Statement $ > $300,000 macdc.us
IRS Filings macdc.us
Full Faith and Credit • Drainage District • Board of Commissioners for each County macdc.us
Key Points to Remember • There are significant tax implications if procedures are not followed • Involve bond counsel and financial advisor from beginning • Include full faith and credit and bond sale in timeline • Don’t issue Notice to Proceed until funds are in hand macdc.us
