CHICAGO -Macomb County, Mich. may issue $270 million of bonds to cover its retiree health care benefits liability.
The board of commissioners approved a resolution requesting that the county executive issue a request for proposals for bond counsel and a financial advisor for the deal, according to the county. County finance director Peter Provenzano proposed the borrowing to the board June 5.
The board's finance committee is expected to take a vote on a resolution to issue bonds to cover the liability on June 18. If passed, it would go to the full board on June 19.
The borrowing is allowed under a relatively new state law that lets certain Michigan governments issue long-term debt to pay off OPEB obligations. Only a handful of issuers, including nearby triple-A rated Oakland County, have taken advantage of the law. In addition to the $270 million for the OPEB liability, the Macomb county board will also consider issuing $25 million for economic development projects.