2009 CLRSD Debt 08-17-2009
RESOLUTION NO. 08-17-2009TOWNSHIP OF BRANDON Resolution for Debt Servicing and Allocation of Costs Related to Central Lakes Region Sanitary District (CLRSD)
WHEREAS, Brandon Township is currently a member township of the Central Lakes Region Sanitary District (hereinafter CLRSD); and
WHEREAS, Brandon Town Board supervisors exercised their right to withdraw from CLRSD by Resolution No. 1-20-2009 dated January 20, 2009, received by CLRSD Chair 1-23- 2009, for an effective date of 1-24-2011; and
WHEREAS, the Brandon Town Board supervisors have received written notice from Attorney John Kolb, attorney for CLRSD, of CLRSD costs allocated to Brandon Township pursuant to CLRSD Resolution D-2009-06, Affirming Method of Allocation of Costs and Directing Notice of Allocation, consistent with Section 8 of Laws 2003, Chapter 127 (the “Enabling Legislation”), in the amount of $599,420.00 payable by November 1, 2009; (the "CLRSD Cost Allocation"); and
WHEREAS, the Brandon Town Board supervisors, with the advice of their legal counsel, have determined that Brandon Township is obligated to pay said CLRSD Cost Allocation by November 1, 2009; and failure to make such payment would subject the residents within the CLRSD service area as currently defined (the "CLRSD Area") to assessment and immediate payment based on their pro-rata share of the District’s net tax capacity; and
WHEREAS, the Brandon Town Board supervisors, with the advice of their legal counsel, have considered various alternatives for payment of said obligation consistent with the Enabling Legislation and Laws 2009, Chapter 44; and
WHEREAS, the Brandon Town Board supervisors have held multiple open meetings to share and gather input from affected landowners and interested parties.
The Brandon Town Board Supervisors make the following FINDINGS:
1. Protecting the lake water and managing sewer systems within Brandon Township provides benefit to all real properties within Brandon Township. However, the primary intended purpose and anticipated benefit for which the above-referred allocated costs were incurred was for the real properties within the CLRSD Area.
2. The Petition presented to the Brandon Town Board supervisors requesting Brandon Township’s participation and membership within CLRSD was primarily if not entirely signed by owners of real property within the CLRSD Area.
3. Brandon Township has paid miscellaneous administrative and legal costs in excess of _$15,542.94 to date from Brandon Township general funds which are paid by the entire Brandon Township tax base of landowners.
4. The majority of Brandon Township properties are located outside of the CLRSD service area and already provide for their own sewer services, and many properties have upgraded their septic systems in recent years.
5. Brandon Township general funds are not currently sufficient to fully pay the CLRSD Cost Allocation, and use of all available general funds for payment of the CLRSD Cost Allocation limits the availability of general funds for other township projects.
6. Requiring payment by landowners of the entire CLRSD Cost Allocations in one year is likely to create hardships for many landowners.
7. The CLRSD has established a precedent of levying ad valorem taxes against properties in the CLRSD Area to fund its annual operating costs.
8. Only ad valorem taxes potentially qualify for property tax refunds.
9. It is most equitable considering the balance of interests of all township members to a) pay general administrative and legal expenses directly incurred by Brandon Township related to CLRSD with Brandon Township general funds; b) pay the entire Brandon Township $599,420.00 cost allocation from CLRSD with $500,000.00 proceeds from general obligation bonds (the “Bonds”) and $99,420.00 from Township general funds; c) seek payment of the Bonds through the levy of ad valorem tax from all taxable parcels within the CLRSD Area for $400,000 of the principal amount of the Bonds, and through the levy of ad valorem taxes on all parcels within Brandon Township for the remaining debt service on the Bonds; and d) spread collection of the ad valorem taxes equally over a period of five (5) years.
NOW THEREFORE, BE IT RESOLVED:
That the Brandon Town Board supervisors make the following determinations:
1. All miscellaneous administrative and legal costs incurred by the township to date and paid through general funds, including future payment of such similar miscellaneous and administrative legal costs, shall remain as paid through said general funds without reimbursement from other sources.
2. The CLRSD Cost Allocation, payable on November 1, 2009, shall be initially paid from Brandon Township general funds and from proceeds of the Bonds as described herein.
3. The Brandon Town Board shall take all necessary actions to issue the Bonds and to levy the ad valorem taxes described in this resolution in the amounts and on the payment dates required to fully pay debt service on the Bonds.
Adopted by the Brandon Town Board of Supervisors this _17th_day of August, 2009
By the following vote:
Paul Lauthen ____yes____
Michael Cleary __yes____
Jennifer Lanners_ no____
Paul Lauthen, Town chair Adrian Ledermann, Town Clerk