1. MACDC Intercounty Drain Procedures Training
Project Financing Alternatives
Stacy Hissong
Fahey Schultz Burzych Rhodes PLC
February 15, 2017
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2. summary Revolving Funds Notes vs. Bonds Tax Exempt Status Bond Counsel
Financial Advisor
Filing Requirements
Plan Ahead
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3. Revolving Funds May be used for intercounty drains
Board Treasurer’s fund utilized
Agree to terms for replenishment
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4. Interim Financing for Petitioned Projects
Determining Amount
Timing
Obtaining Bids
Terms for Repayment
Filing Requirements
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5. Financing for Petitioned Projects
Bonds vs. Notes
Term
Repayment of interim borrowings
Prepayments
Filing requirements
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6. Financing for §196 Maintenance projects
Term and amount
Note
Filing Requirements
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7. Filings MI Treasury: Qualifying Statement Form 5047
MI Treasury: Security Report Form 3892
IRS: Form 8038-GC/Form 8038-G
SEC: Official Statement
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8. Michigan Revised Municipal Finance Act (2001 PA 34 or “Act 34”)
Security Report
Competitive or Negotiated Sale
Qualifying Statement
$ > $300,000
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9. IRS Filings Form 8038 G Filing Date Form 8038 C $100,000 or MORE
$100,000 or LESS
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10. Full Faith and Credit Drainage District
Board of Commissioners for each County
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11. 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
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12. macdc.us