ITHACA — Gratiot County is scheduled to lend up to $203,683.02 to the Gratiot County Drain #050 Drainage District. Resolution 26-465, an attachment to the Oct. 6 board agenda, would approve an internal financing agreement under the Michigan Drain Code (MCL 280.434). The vote has not yet taken place.
The terms
According to the draft agreement, dated Oct. 1, 2026:
- The principal is not to exceed $203,683.02, and the county is not obligated to advance more without an amendment.
- Interest is a fixed 4.25% a year, accruing from the date money is advanced.
- The term is 15 years, with a final maturity of June 15, 2041, and 15 annual installments beginning June 15, 2027.
- Repayment comes from funds legally available to the drainage district: assessments, municipal apportionments, grants or reimbursements, and project revenues. The district may prepay without penalty.
- The money may be used only for Drain #050 costs, including construction, engineering, legal and right-of-way, and each advance is to be backed by invoices or similar documents.
The numbers that do not yet line up
The agreement says the average annual installment is “approximately $18,025.” A standard level-payment calculation on $203,683.02 at 4.25% over 15 years gives about $18,641 a year. The difference is about $600 a year. The agreement says the final payment will be adjusted and that a final amortization schedule will be attached as Exhibit A once the actual advance date is known; the Exhibit A in the packet is a summary without a schedule. The amount the district would actually owe depends on how much is advanced and when.
Exhibit B lists an estimated project cost of $252,231.69, made up of the county’s $203,683.02 and $48,548.67 of “pre-payment funding.” The lines for state or grant funding, municipal apportionments and drain assessments are blank. The packet therefore does not show who will ultimately pay the assessments behind the loan.
What the packet does not say
Neither the resolution nor the agreement says where Drain #050 is, what work the project involves, who is assessed, or what fund the county’s advance comes from; the agreement says only “funds legally available to the County.” The signature blocks for both parties are blank, and the agreement does not take effect until all required approvals are obtained, including the drainage district’s own. The county drain commissioner’s office is listed as the district’s notice address. Gratiot County and the Drain Commissioner’s office have not been asked to comment for this report. Either is welcome to respond at contactus@gcwhistleblower.com, and any response will be published in full.