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Learn about revolving funds, bonds vs. notes, tax-exempt status, filing requirements, & more for efficient project financing. Ensure compliance with essential steps outlined by experts. Plan ahead to avoid issues.
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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
